Graham Cope Head of Region Regional Business Development This presentation was prepared by EIF. The information included in this presentation is based.

Graham CopeHead of Region

Regional Business Development

This presentation was prepared by EIF. The information included in this presentation is based on figures available for May 2011

Any estimates and projections contained herein involve significant elements of subjective judgment and analysis, which may or may not be correct.

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Latest developments of

EIF JEREMIE Activities

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Contents: latest developments of EIF JEREMIE Activities

1. JEREMIE – status quo – achievements to date and mandate-specific information

Special Features

Lithuania

Languedoc Roussillon (FR)

2. JEREMIE – outlook for 2011

3.Future for JEREMIE

4.Annexes

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JEREMIE at a glance

Country Date

Current Holding

Fund Size (EURm)

Number of calls

foreseen

Number of calls

published

Allocations to calls (EURm)

Expected Number of

Transactions

Number of Transactions

signed

Signed Amounts (EURm)

Greece 2007 250 6 3 235 11 2 60

Romania 2008 100 3 3 98 4 2 63

Latvia 2008 91.5 3 2 96.7 (*) 6 5 86.7

Lithuania 2008 210 4 4 135 10 7 114

Slovakia 2008 100 3 - 90.5 6 - -Languedoc

Roussillon (F) 2008 30 4 4 33 (*) 3 2 13

Campania (I) 2008 90 3 2 79 2 - -

Cyprus 2009 20 2 2 18 2 1 18

Bulgaria 2009 199 5 4 155 8 - -

Sicily (I) 2009 60 2 2 53 4 - -

Malta 2010 10 1 1 8.8 1 - 8.8

Sicily (I) ESF 2010 15 1 - 13.5 1 - -

TOTAL 1,175.5 37.0 27.0 1,015.5 58.0 19.0 363.5

(*) incl. some amounts re-allocated from original calls / transactions

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JEREMIE Mandate by Mandate

Total JEREMIE Holding Funds:

EUR 1.18 bln

Total JEREMIE Holding Funds:

EUR 1.18 bln

+ JEREMIE Sicily ESF signed in December 2010 for EUR 15m

+ JEREMIE Sicily ESF signed in December 2010 for EUR 15m

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JEREMIE Highlights (1)

JEREMIE Greece

2 FRSP transactions signed with National Bank of Greece and Alpha Bank for EUR30m each

FRSP Micro and FRSP ICT instrument under selection process

JEREMIE Romania

2 FLPG transactions signed with Raiffeisen Bank and BCR

2 VC transactions about to be signed

JEREMIE Latvia

Amendment of FRS contracts implemented

Investments under VC and Seed Start up products running well

JEREMIE Slovakia

Investment Strategy approved, calls being launched

JEREMIE Campania (I)

1 FRSP transaction about to be signed

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JEREMIE Highlights (2)

JEREMIE Cyprus

1 FLPG transaction signed with Bank of Cyprus

First disbursement under the FRS instrument in Feb 2011

JEREMIE Bulgaria

Strong interest from the market in FLPG, Growth and Mezzanine instruments (23 expressions of interest in Jan 2011

5 transactions approved by the EIF Board

JEREMIE Sicily (I)

6 applications received for the 2 calls for expression of interest FRSP and FRSP Micro which are under evaluation process

JEREMIE Malta

1 FLPG transaction signed in April

JEREMIE Sicily ESF (I)

First Investment Board took place in Feb 2011 where the Governance rules were approved

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Special Focus Feature - Lithuania Update

Funded Risk Sharing Product (FRSP) sees huge upturn in lending

Following changes in instrument conditions, lending by banks creates huge surge in eligible lending

Key recent progress

Changes Introduced

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Lithuania Update

Business Angel Fund begins to make big impact Following Agreement signed on 21/01/2010 Manager – consortium of UAB “Strata” and UAB “MES

Invest” Fund size – EUR 8.4 mill. Investment period – till 31/12/2014 (with possibility to

extend for 12 months) Structure of investment – 50% BA Fund I + at least 50%

business angel(s) Max investment size into SME – up to EUR 400,000.

Key recent progress

ART21 is developing innovative ERP type solutions. Investment will be used to develop 3rd generation of AgroSmart software.

Retech Nuostabioji technologija has created its own energy saving LED lamps, which efficiently replace fluorescent lamps. Investments will be

used for the product development and expansion.

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Eruditus project – online education platform creation which will provide newest and most

actual studies content and will allow renewing knowledge using social networks, digital TV or

Smartphone.

Alaska engineers have developed innovative solution for ventilation systems. Funds

received through first tranche will be used for product certification, warehouse establishment

and marketing purposes.

Tuta is a textile company producing tailor-made sportswear for professionals, mainly

basketball players’. Company is planning to expand its range of products.

Lithuania Update- Business Angel Fund in action

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Languedoc Roussillon update

Key aspects of Holding Fund

Only Holding Fund in France managed by EIF

Pioneering regional development process

EUR 30m total (EUR 15m Structural Funds + EUR 15m regional money)

Well-structured 3 instrument portfolio, tailor-made to meet regional needs

Combination of Equity, debt and guarantee instruments

Total Leverage of 4.5 multiple expected

Excellent collaboration with local authorities

Success of process generating wider regional interest

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Languedoc Roussillon JEREMIE Holding Fund

Seed loans Instrument:

EUR 2mLeverage of 2 i.e. EUR 4m for LR’s SMEs

Co-investment Instrument:

EUR 11mLeverage of 2i.e. EUR 22m for LR’s SMEs

Guarantee Instrument:

EUR 14mLeverage of 8.4i.e. EUR 117m for LR’s SMEs

Resulting in a total of EUR 143m for LR’s

SMEs

FR State: EUR 15m ERDF

Région: EUR 15m Région

EUR 30m

EIF

CREALIASAS JER LR

Statut de SCR

Signature expected

in May-June 2011

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Example results in the region

SAS JEREMIE LR has invested in MTC (MEDICAL TECHNI CONFORT), a Languedoc-Roussillon based SME, specialised in the design and manufacture of medical devices to improve patient and caregiver comfort.

SAS JEREMIE LR has invested in ALCI, a Languedoc-Roussillon based SME specialised in the development of robotic applications for the food industry. ALCI offers automated solutions for the treatment of a wide of range of perishable and irregularly-shaped products.

MEZOA received a seed loan from CREALIA to develop new software for the video game market. This system will use a 3D model (flora, relief, etc…) as a basis for the scenery of video games. Before receiving such a loan, this project has been incubated for several months in Montpellier University (LIRMM-CNRS, Université Montpellier II).

MEZOA(Entrepreneur with the obligation to set up a

company within 6 months)

MEZOA(Entrepreneur with the obligation to set up a

company within 6 months)

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Special Features

Lithuania

Languedoc Roussillon (FR)



4.Annexes

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0

5

10

15

20

25

30

35

40

2008 2009 Q1 2010 Q2 2010 Q3 2010 Q4 2010 Q1 2011 Q2 2011 Q3 2011 Q4 2011

Outlook for 2011

All Calls to be completed

Number of published calls (cumulative)

* As at 05 May 2011* As at 05 May 2011

1515 / 21

Outlook for 2011

Financial Intermediary Transactions building up quickly

Number of approved transactions (cumulative)

0

10

20

30

40

50

60

Q32009

Q42009

Q12010

Q22010

Q32010

Q42010

Q12011

Q22011

Q32011

Q42011

1616 / 21

121 VC applications

received

121 VC applications

received

70 Guarantee applications

received

70 Guarantee applications

received

42 Due Diligences

carried out

42 Due Diligences

carried out

31 approved transactions31 approved transactions

• Greece

• Romania

• Latvia

• Lithuania

• Slovakia

• Languedoc Roussillon (FR)

• Campania (IT)

• Cyprus

• Bulgaria

• Sicily (IT)

• Malta

• Greece

• Romania

• Latvia

• Lithuania

• Slovakia

• Languedoc Roussillon (FR)

• Campania (IT)

• Cyprus

• Bulgaria

• Sicily (IT)

• Malta

In 4 years of JEREMIE at the EIF:

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Amount of Private Finance attracted (leverage)

Assurance of eligibility of guarantees = fully fledged leverage

Q1 2010 >2x leverage

Q4 2011 3x leverage

HFs HFs HFs HFs HFs HFsHFs HFs

HFs

211 229 246

732

984

HFs

2,159

1,762

1,523

24175

0m

500m

1000m

1500m

2000m

2500m

3000m

3500m

Q42009

Q12010

Q22010

Q32010

Q42010

Q12011

Q22011

Q32011

Q42011

2012

1818 / 21



Special Features

Lithuania

Languedoc Rousillon (FR)



4.Annexes

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The future of JEREMIE via EIF

Intensive talks with the DG REGIO have been underway since Autumn 2010 to discuss the existing implementation framework and the design of the new regulatory framework for the next EU funding period (i.e. 2014-2020) - primarily via the forum of COCOF (Committee of the Coordination of the Funds).

The EIF’s JEREMIE team (in collaboration with the EIB’s JESSICA team) has been heavily involved in discussing necessary modifications to, and interpretation of, the implementation framework - in order to pave the way for a smooth roll-out of JEREMIE version 2.0.

The resulting draft COCOF note has emerged as a complete and comprehensive document which, once approved, will give a clearer guidance for a more efficient implementation of financial engineering instruments throughout Europe.

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The future of JEREMIE via 2020 Strategy

EC is currently defining priorities: 3 growth pillars

Smart

Sustainable

Inclusive

EC directorates are incentivised to allocate increased budgets to financial engineering

Important policy shift away from Europe’s predominantly grant-based approach

“Europe 2020: A

European Strategy for

smart, sustainable

and inclusive growth”

“Europe 2020: A


smart, sustainable


2121 / 21

The future of JEREMIE via 2020 Strategy

In support of this strategy, EC will establish flagship initiatives

Innovative union

Digital agenda for Europe

Resource efficient Europe

Objectives are largely shared with Member States

Key elements of 2020 strategy:

More efficient mobilisation of public funds

Deployment of market-based instruments

Enhancement of leverage – bringing public and private finance closer

Revolving nature of budgetary resources

“Europe 2020: A


smart, sustainable


“Europe 2020: A


smart, sustainable


2222 / 21

Contact

European Investment Fund

96 boulevard Konrad Adenauer

L-2968 Luxembourg

Regional Business Development

Tel.: (+352) 42 66 88 1

Fax: (+352) 42 66 88 280

www.eif.org

23

4. ANNEXES

24

JEREMIE Greece

New Funding Agreement signed with the Hellenic Republic, increasing the HF amount to EUR 250m – all-new investment strategy to be drawn up

FRSP: Agreements signed with 2 financial intermediaries for a total of EUR 120m (50% JEREMIE participation)

FRSP (microfinance) agreement signed in April 2011

FRSP ICT call launched and 2 VC calls to be launched in May 2011

Quasi-equity

Debt

Other

instruments

Equity

ExpansionEarly stageStart-up

Business Angels

Risk Capital

Micro Finance / Funded Risk-Sharing Products

Guarantee / Structured Portfolio Operations

Mezzanine Funds

Technology Transfer Funding

25

Holding Fund amount at EUR 100m

FLPG call for expression of interest 4x oversubscribed – 9 applicants, 2 Financial Intermediaries Selected, BCR & Raiffeissen

Operations approved by EIF Board and Investment Board for Financial Intermediaries under Risk Capital Fund and FLPG Call for Expression of Interest. 2 VC funds selected, one generalist and one sector-focussed.

Fundraising ongoing for VC instrument, good market feedback.

FLPG under implementation – target portfolio EUR 315m (5x leverage)

Quasi-equity

Debt

Other

instruments

Equity


Business Angels

Risk Capital



Mezzanine Funds


JEREMIE Romania

26

JEREMIE Latvia

Holding Fund amount EUR 91.5m

Baltcap made second investment to reach EUR 1.75m

Transfer of HF management due in January 2012

Coming soon: Launch of new equity instrument

Quasi-equity

Debt

Other

instruments

Equity


Business Angels

Risk Capital



Mezzanine Funds


27

JEREMIE Lithuania

Holding Fund amount EUR 210m

First FLPG transaction signed

Transfer of HF management due in January 2012

New equity call for expression of interest under selection process

Quasi-equity

Debt

Other

instruments

Equity


Business Angels

Risk Capital



Mezzanine Funds


28

JEREMIE Slovakia


Increase from Ministry of Economy (OP Competitiveness & Economic Growth) to fully replace the intended contribution from Ministry of Environment following government decision

Investment Strategy to be updated to account for this new allocation from Ministry of Economy

Coming soon: launch of calls for expression of interest for FLPG & VC

Quasi-equity

Debt

Other

instruments

Equity


Business Angels

Risk Capital



Mezzanine Funds


29

JEREMIE Languedoc Roussillon (FR) Holding Fund amount EUR 30m

Signature of the Seed Instrument took place in September 2010 & Signature of Risk Capital Fund took place in November 2010

Contractual negotiations initiated for implementation of FLPG product

Coming soon: signature for FLPG expected in May 2011

Quasi-equity

Debt

Other

instruments

Equity


Business Angels

Risk Capital



Mezzanine Funds


30

JEREMIE Campania (IT)

Holding Fund Amount EUR 90m

Assessment of applications completed for FRSP & FRSP Micro, negotiations started with selected FI for signature

IB members recently re-appointed following regional elections

Coming soon: Launch of a new Microcredit Call for Expression of Interest

Quasi-equity

Debt

Other

instruments

Equity


Business Angels

Risk Capital



Mezzanine Funds


31

JEREMIE Cyprus


FRSP agreement signed with the Bank of Cyprus

FLPG agreement signed with the Bank of Cyprus in April

Coming soon: entrance into draw-down period for SMEs

Quasi-equity

Debt

Other

instruments

Equity


Business Angels

Risk Capital



Mezzanine Funds


32

JEREMIE Bulgaria

Holding Fund amount EUR 199m EIF Office opened in Sofia Calls for Expression of Interest for

VC Fund, Growth Fund, Mezzanine Fund & First Loss Portfolio Guarantee

Strong interest from the market. Total number of applicants at 36

Board approvals of first transactions in May 2011

Quasi-equity

Debt

Other

instruments

Equity


Business Angels

Risk Capital



Mezzanine Funds


33

JEREMIE Sicily ERDF (IT)


Investment Strategy finalised

Launch of Calls for Expression of Interest for FRS & FRS Micro

Evaluation and Due Diligence of the applicants to the call for expression of interest in process

Quasi-equity

Debt

Other

instruments

Equity


Business Angels

Risk Capital



Mezzanine Funds


34

JEREMIE Sicily ESF (IT)

Holding Fund amount EUR 15m in December 2010

First Investment Board took place in February 2011

Coming soon: First FRSP call to be launched in June 2011

Quasi-equity

Debt

Other

instruments

Equity


Business Angels

Risk Capital



Mezzanine Funds


35

JEREMIE Malta


Market consultation for FLPG completed

EIF Board approval for the FLPG instrument & negotiation with FI

Signature with Bank of Valetta for the FLPG instrument in April 2011

Quasi-equity

Debt

Other

instruments

Equity


Business Angels

Risk Capital



Mezzanine Funds


Graham Cope Head of Region Regional Business Development This presentation was prepared by EIF. The information included in this presentation is based.

Documents

jeremie mandate

jeremie greece

jeremie cyprus

jeremie highlights

jeremie campania

jeremie annexes slide

total eur

total of eur