Financial Partner of the Brussels-based SME s Innovating through

Financial Partner of the Brussels-based SME’s Innovating through EU Regional Policy 12 th June 2006 Mobilising & Sustaining Private Investment Serge Vilain Chairman

History and mission § Brussels Regional Investment Company § § § Size: § § § Capital share: EUR 75 mio Equity: EUR 138 mio Shareholders: § § § S. R. I. B. - G. I. M. B. Set up in 1984 Brussels-Capital Region 76% Private: 24% Main mission: to support the creation and the growth of brussels-based companies

Brussels-Capital Region : Set up in 1980 o Surface area: 162 km 2 - 19 communes o Population: o 1 mio inhabitants (9, 7% pop. Belgium) • Unemployment: 16% pop. • o Economy: Service-oriented economy • 17% of the salaried belgian population in Brussels • Some data

Why a Regional Investment Company ? Market Failures Finance Gap S. R. I. B. acts Limited scope of the Venture Capital Industry Limited access to start-up financing Micro-financing Banks = main source of financing But structural changes + Basel II - to equity for SME’s to improve - to start-up capital the access - to micro-financing to bank financing for SME’s

Financial Instruments Contribution in equity or quasiequity Facilitating the SME’s bank financing by partnerships Capital expansion & buy outs Start-up financing Association with Fonds de Participation Partnership with EIB Local & social economy Guarantees to obtain bank credit Investments’ Cofinancing

Equity & quasi equity o Forms of financing: • • • o Scope of investments: • • • o from EUR 12 K to EUR 3, 7 mio Goals: • • o o Seed & start-up financing (Brustart) Expansion capital & buy outs (SRIB) not limited to high growth potential companies Amount of the investment: • o equity (minority shareholding) - exit planned after 5 to 7 years long term loans (without security), convertible loans, … Added value for the Region Return On Investment Advice & support Leverage effect: bank financing / others investors Some companies in portforlio

Micro-financing o o o Set up in 2001 Cofinanced by structural funds (Objectif II) Goal: Support to social & local economy Local Economy Social Economy Support to the development of businesses established in zone Objectif II Support to activities with a social goal Micro-credit: • Individuals • Personal contribution: min EUR 620 • Loan from EUR 1. 250 to EUR 12. 500 • Rate: 4% Fonds d’amorçage: Subordinated loan • Companies • Founders contribution : min EUR 6. 200 • From EUR 5. 000 to EUR 50. 000 • Loan from EUR 5. 000 to EUR 75. 000 • Rate: 4%

SRIB Portfolio Investments in +/- 250 businesses % invested amounts 31. 12. 2005 per activity sector (exc. Brusoc)

Investments made in 2005 Nb investments in 2005 In EUR Equity Loans Total Invested Amounts Average 7 15 6. 297. 952 419. 863 6 6 12 2. 305. 000 192. 083 0 Total: 8 52 52 1. 093. 280 21. 025 13 66 79 9. 696. 232 122. 737

Financial Instruments Contribution in equity or quasiequity Facilitating the SME’s bank financing by partnerships Capital expansion & buy outs Start-up financing Association with Fonds de Participation Partnership with EIB Local & social economy Guarantees to obtain bank credit Investments’ Cofinancing

o Goal: to facilitate the SME’s financing by providing the guarantee of the Brussels Region in order to obtain a bank credit o Cover up to 75% of the bank credit (85% for starters) o For individuals and SME’s (european definition) o From july 2003: Management of the Fund by SRIB / Fonds de participation) Nearly 400 demands analyzed in 2005 o Activity 2005 = 5 x activity 2002 o

B 2 E – Bruxelles PME – KMO Brussel New financial instrument of the SRIB Group

Set up in March 2006 Goal: to facilitate the long term financing of the Brussels-based SME’s Size: EUR 78 mios – financed by SRIB and EIB EUR 28 mios (15 capital – 13 loan) Loan EUR 50 mios With guarantee of the Brussels-Capital Region “pari passu” loans SME’s Banks

B 2 E – Cofinancing activity • Long term loans (min 3 years) • Cofinancing pari passu with banks leverage effect • Amount loans B 2 E: from EUR 100 K to EUR 750 K – max 50% • Interest rate: bankrate – 15 basis pts • Decision process: • demand of cofinancing introduced by the bank • decision within 2 weeks Bank Loans “pari passu” 50% Max From 100 K to 750 K Rate = Bank rate – 15 pts 50% Min Brussels-based SME Investment > 200 K

B 2 E – Eligible projects § § Investments to be made by SME’s: european definition Activity: all sectors except the non-ethical sectors Investments: o Tangibles investments: machines, IT, buildings, …. o Intangibles investments: patents & licences, R&D, protoypes, development of a new product or production process, …

For more information: S. R. I. B. – G. I. M. B. Rue de Stassartstraat 32 1050 Bruxelles – Brussel Phone: 02 /548 22 11 www. srib. be – www. gimb. be