1. Finance Yorkshire Welcome www.finance-yorkshire.com

2. Finance Yorkshire John Watson- Director

3. www.finance-yorkshire.com Finance Yorkshire Why are we here this morning? Strengthening relationships with stakeholders, partners, intermediaries and clients Demonstrating how we are working in partnership with our LEP to support business growth Looking to the future Dialogue and questions

4. www.finance-yorkshire.com Finance Yorkshire Agenda John Watson, Director, Finance Yorkshire Alex McWhirter, CEO, Finance Yorkshire James Farrar - Local Enterprise Partnership Seedcorn Case Study – Hugh Rudden, Fullsun Photovoltaics Business Loans Case Study – Kevin Hollinrake, Vizzihome Equity Linked Finance Case Study – Paul Stark, Aerocover Questions & Answers

5. www.finance-yorkshire.com Finance Yorkshire Alex McWhirter - CEO

6. www.finance-yorkshire.com Finance Yorkshire What we are… £90m Venture Capital and Loan Fund Finance sourced from: £30m European Regional Development Fund £15m Yorkshire Forward/Business Innovation and Skills £45m European Investment Bank

7. www.finance-yorkshire.com Finance Yorkshire Our business approach… To fully invest the £90 million fund through helping SME’s constrained by finance to grow To create a sustainable fund To be recognised and respected as a key participant in the SME business and professional sectors To stimulate demand for finance in our key market segments To realise good returns for investors and value for money

8. www.finance-yorkshire.com Finance Yorkshire Our investment performance so far... 346 investments totalling over £39 million On track to meet economic targets; jobs created & safeguarded; increase in turnover; business starts and private sector leverage On track to achieve full investment by December 2014

9. www.finance-yorkshire.com Finance Yorkshire Investment Profile

10. www.finance-yorkshire.com Finance Yorkshire Investment impact... Created or safeguarded 5620 jobs Over £64 million Private Sector Leverage, resulting in £2 levered for every £1 invested £44.2 million in value added sales Legacy fund to be invested in region’s businesses in line with original objectives - to be utilised after 2019

11. www.finance-yorkshire.com Finance Yorkshire Investment performance by location...

12. www.finance-yorkshire.com Finance Yorkshire Investment performance by location...

13. www.finance-yorkshire.com Finance Yorkshire Investment performance by sector... Sector Analysis – All Funds SectorApplication Process (%)Investments (%) Business Services12%18% Engineering / Industrial products / Materials24%25% Financial Services1% Healthcare / Pharma / Bioscience14%7% ICT / Software / Telecoms / Media21%12% Leisure / Hospitality1%2% Renewables / Energy / Cleantech6%7% Consumer / Food & Drink6%10% Other15%18%

14. www.finance-yorkshire.com Finance Yorkshire Investment criteria… A business with growth potential A new start or growing business A business unable to source its full funding requirement from the commercial market SME’s paying business rates in Yorkshire and the Humber or relocating to the region

15. www.finance-yorkshire.com Finance Yorkshire Three portfolios Seedcorn Finance Business Loans Equity Linked Finance

16. Finance Yorkshire Seedcorn Finance Start up or early stage innovative businesses Involves strong technological ‘know-how’ and credible founders First products or services developed with potential for rapid growth Can invest up to £780,000 over the lifetime of the business through equity-based, tranched investments Investments of £2m+ when syndicating with other funds www.finance-yorkshire.com

17. Finance Yorkshire Case Study – Carlton Manufacturing www.finance-yorkshire.com  Start up that develops sustainable construction materials  £675,000 Seedcorn Fund investment  Company moved premises and expanded workforce as a direct result of investment  The company has rapidly growing revenues and has plans to develop new products

18. Finance Yorkshire Business Loans Fixed rate loans typically between £15,000 - £150,000 as syndicated or complete financial packages for businesses Financial packaging with other forms of debt finance including the banks Range of investments include; Working Capital, Capital Expenditure, Investment in Premises and development capital www.finance-yorkshire.com

19. Finance Yorkshire Case Study – The Beautiful Meme www.finance-yorkshire.com  Designers and writers that specialise in rebranding and advertising  £40,000 Business Loan to help the company expand its portfolio  The finance has enabled the company to employ a new designer and copywriter and meet additional overhead costs

20. Finance Yorkshire Equity Linked Finance Equity-linked investments from £100,000 to £2m and Mezzanine loans Some start ups, largely growth, development capital or expansion Work alongside other finance providers to invest in larger transactions Tailored deal structures to give maximum benefit to the investee companies www.finance-yorkshire.com

21. Finance Yorkshire Case study - Envirodoor  An international manufacturer and supplier of specialist and hygienic doors  £600,000 Equity Linked investment to support the company’s marketing, recruitment and research and development programmes  Looking to grow its distribution network and to build relationships with key partners www.finance-yorkshire.com

22. Finance Yorkshire has: completed 346 investments Invested a total of £39.43m Seedcorn Finance – 44 investments totalling £7.93m Business Loans – 270 Investments totalling £15.00m Equity Linked Finance – 32 Investments totalling £16.50m Finance Yorkshire Portfolio performance to date.. www.finance-yorkshire.com

23. Finance Yorkshire Our Investment approach Working alongside the commercial market; Maintaining and developing relationships with financial intermediaries to promote awareness and dealflow Market making effect, making deals happen by spreading the risk with other investors and lenders Co-investing with other lenders and funds

24. www.finance-yorkshire.com Finance Yorkshire James Farrar The York, North Yorkshire and East Riding Local Enterprise Partnership

26. Vision: Grow Business Faster Small Business Growth Strong Voice for Local Business Major Growth Opportunities Inward Investment Potash Agri-Innovation The LEP Plan

27. Small Business Growth Delivered to date: - 1,300 Business Supported - £2.2m Skills funding secured - 18,000 Businesses engaged - 108 sources of support promoted - 73 Business Mentors attracted - 39 Networks in partnership - Business Support Seminars - Online Webinars developed Good quality, easily accessible business support not reliant upon public funding Businesses who get external help perform better than those that dont

28. Major Growth opportunities FERA Science & Innovation Campus Potential 800 Jobs York Potash £2.5bn Investment £2.5m Whitby Business Par c.4000 jobs Drax £700m Biomass Conversion £1bn Carbon Capture & Storage

29. Forward Strategy 5 Year Growth Strategy A compelling vision for the region - Taking opportunities - Addressing barriers Central Govt Single pot European Funding Public / Private partnership Small businesses key to growth of our economy LEP best placed to coordinate Business support

30. York Means Business website York Means Business web portal is supported and led by the York Business Team of the City of York Council. The site offers start-ups, growing, established and relocating organisations and businesses a wealth of information and signposting to appropriate knowledge, funding, assistance and support. www.yorkmeansbusiness.co.uwww.yorkmeansbusiness.co.uk

31. www.finance-yorkshire.com Finance Yorkshire Seedcorn Fund Testimonial Hugh Rudden, Fullsun Photovoltaics

32. www.finance-yorkshire.com Finance Yorkshire Business Loans Testimonial Kevin Hollinrake, Vizzihome

33. Investee Business

35. Weekly Sold Report Investee Business

36. How it Works 1.Information from the Internet 2.Covers England, Ireland, Scotland and Wales 3.Very accurate – 97% UK Agents 4.2m records each week 5.Data added, cleansed and de-duped weekly 6.Sales data from Aug 08 7.Lettings data from May 09 Investee Business

37. Current users

38. Full Property List – For Sale Investee Business

39. Property History Investee Business

40. Vizzihome Data USPs Scale: largest database of UK homemovers known Quality: very high quality data through algorithms and de-duplication policies Change: constantly evolving and updated Permissions: DPA compliant Accessibility: easy to use and simple to supply Investee Business

41. Why use this data? Home moving data is very powerful: – Average householder spends twice as much on home in year 1 than in any subsequent year – Average of £8,000 spend in first 3 months; £15,000 in first 12 months – Approx 1.3m home owners move every year, spending £2.2bn on associated household goods – 75% of consumers polled would welcome relevant marketing Investee Business

42. What for? ActivityDefinitionCost per record AcquisitionMarketing to those who are not existing clients/customers to acquire new business 10-20p RetentionOverlay data with existing database to market to existing clients/customers with the aim of retaining business whilst stimulating sales 20-50p HygieneDetecting and removing data which is out-of-date, redundant or incomplete 5p Investee Business

43. Why Finance Yorkshire? For more information on Vizzihome please contact : Will Lownsbrough, Commercial Director 07850 313 887 wlownsbrough@vizzihome.co.uk Investee Business

44. www.finance-yorkshire.com Finance Yorkshire Equity Linked Finance Testimonial Paul Stark, Aerocover

45. The investment journey Investee Business

46. The spin out Investee Business

47. The introduction Investee Business

48. The Process ApplicationMore Info Investment MeetingsAcceptance Negotiations and DD Completion Investee Business

49. Challenges

50. Experience

51. www.finance-yorkshire.com Finance Yorkshire Future work… Work collaboratively with the York, North Yorkshire and East Riding LEP and Local Authorities Creating the next gap fund for SMEs after 2014 Develop the Finance Yorkshire brand and a recognised provider of growth finance to SMEs

52. www.finance-yorkshire.com Finance Yorkshire Making an application Call us to make sure it’s eligible 0845 649 0000 or make enquiry via website www.finance-yorkshire.comwww.finance-yorkshire.com An Investment Manager will contact you to discuss. Complete Application Form & the supporting information when advised by the Investment Manager.

53. Finance Yorkshire Q & A www.finance-yorkshire.com Finance Yorkshire Ltd is a company limited by guarantee (Registered No 07075478). Finance Yorkshire Ltd (0845 649 0000) comprises three sub funds, Finance Yorkshire Equity Fund, which is managed by Neon Capital Partners Limited, Finance Yorkshire Small Loans Fund, which is managed by EV Business Loans Limited and Finance Yorkshire Seedcorn Fund, which is managed by Enterprise Ventures Limited. Each of these Fund Managers is authorised and regulated by the Financial Services Authority.