Geneva 10 April 2008 Patrice LIAUZU The role

Geneva, 10 April 2008 Patrice LIAUZU The role of a EU financia institution in support o innovation UN ECONOMIC COMMISSION FOR EUROPE REGION This presentation was prepared by EIF. The information included in this presentation is based on figures available for end March 2008. Any estimates and projections contained herein involve significant elements of subjective judgment and analysis, which may or may not be correct.

Table of contents EIF at a glance An active role in European Venture Capital New strategic developments Tech Transfer Fund of Funds Clean Tech JEREMIE (Cohesion Policy) Conclusions / Next Steps 1 / 18

EIF at a glance 1. EIF at a glance 2. An active role in European Venture Capital 3. New strategic developments a. Tech Transfer b. Fund of Funds c. Clean Tech d. JEREMIE (Cohesion Policy) 4. Conclusions / Next Steps EU specialised financial institution for SMEs, acting through: Venture Capital (fund-of-funds), Guarantees SME portfolios and financial engineering for AAA (Standard & Poor’s) Aaa (Moody’s) AAA (Fitch) MDB status 0% weighting Subscribed capital: EUR 3 bn EIB: 66 % EU: 25 % Fin. institutions: 9 % EU 27, EFTA, Candidate countries 2 / 18 Support to EU Objectives Generate an appropriate return

Under management at end February 2008 1. EIF at a glance 2. An active role in European Venture Capital 3. New strategic developments a. Tech Transfer b. Fund of Funds c. Clean Tech d. JEREMIE (Cohesion Policy) 4. Conclusions / Next Steps New Total signatures in Vehicles signatures 2007 2008 VENTURE CAPITAL GUARANTEES TOTAL 3 / 18 EUR 4. 4 bn EUR 0. 5 bn EUR 11. 6 bn EUR 1. 4 bn EUR 16 bn EUR 1. 9 bn EUR 14 m EUR 277 funds 189 operat.

The PE/VC market covered by EIF 1. EIF at a glance 2. An active role in European Venture Capital 3. New strategic developments a. Tech Transfer b. Fund of Funds c. Clean Tech d. JEREMIE (Cohesion Policy) 4. Conclusions / Next Steps Tech Transfer/ Incubators VENTURE CAPITAL Business Angels Side Funds, Pre-Seed Stage Early Stage EIF INVESTMENT FOCUS 4 / 18 PRIVATE EQUITY Expansion Development Capital Mid Stage Later-stage Buy-out Stock Exchange/ Public Equity

Venture portfolio overview 1. EIF at a glance 2. An active role in European Venture Capital 3. New strategic developments a. Tech Transfer b. Fund of Funds c. Clean Tech d. JEREMIE (Cohesion Policy) 4. Conclusions / Next Steps Geographic spread ■ Balance portfolio between expansion capital and start-up/early-stage ■ Portfolio biased towards technology (59% in ICT & life sciences) ■ Around 30% of portfolio in multicountry funds 5 / 18

Activities covered by the EIF 1. EIF at a glance 2. An active role in European Venture Capital 3. New strategic developments a. Tech Transfer b. Fund of Funds c. Clean Tech d. JEREMIE (Cohesion Policy) 4. Conclusions / Next Steps 6 / 18

1. EIF at a glance 2. An active role in European Venture Capital 3. New strategic developments a. Tech Transfer b. Fund of Funds c. Clean Tech d. JEREMIE (Cohesion Policy) 4. Conclusions / Next Steps 7 / 18 New Strategic Developments

Technology Transfer 1. EIF at a glance 2. An active role in European Venture Capital 3. New strategic developments a. Tech Transfer b. Fund of Funds c. Clean Tech d. JEREMIE (Cohesion Policy) 4. Conclusions / Next Steps R&D Tech Transfer / proof-of-concept Marketable product Funding gap «Technology» Intellectual Property «Prototype» Intellectual Property Licensing Special Protection Vehicles Virtual LAB Created by leading R&D Centres «Spin-off» Special Protection Vehicles «Hybrid» Special. Purpose Vehicles Investment focus of EIF 8 / 18 Provider of innovative solutions to VC constraints

EIF's. Tech Transfer improves the commercialisation of research 1. EIF at a glance 2. An active role in European Venture Capital 3. New strategic developments a. Tech Transfer b. Fund of Funds c. Clean Tech d. JEREMIE (Cohesion Policy) 4. Conclusions / Next Steps 9 / 18

Experienced Advisor of Tailor-made Programm 1. EIF at a glance 2. An active role in European Venture Capital 3. New strategic developments a. Tech Transfer b. Fund of Funds c. Clean Tech d. JEREMIE (Cohesion Policy) 4. Conclusions / Next Steps 10 / 18

Experienced Advisor of Tailor-made Programm 1. EIF at a glance 2. An active role in European Venture Capital 3. New strategic developments a. Tech Transfer b. Fund of Funds c. Clean Tech d. JEREMIE (Cohesion Policy) 4. Conclusions / Next Steps 11 / 18

Clean Technology 1. EIF at a glance 2. An active role in European Venture Capital 3. New strategic developments a. Tech Transfer b. Fund of Funds c. Clean Tech d. JEREMIE (Cohesion Policy) 4. Conclusions / Next Steps 12 / 18

GEEREF 1. EIF at a glance 2. An active role in European Venture Capital 3. New strategic developments a. Tech Transfer b. Fund of Funds c. Clean Tech d. JEREMIE (Cohesion Policy) 4. Conclusions / Next Steps ■ Global Private Equity Fund of Funds Investing in specialised Regional Funds for renewable energy and energy efficiency ■ Developing countries and economies in transition; ■ Target Projects: Small and Medium Sized Energy Projects (up to EUR 10 m) ■ Provide Risk capital + Technical assistance to Funds ■ Profit subordination - leverage private funds ■ Luxembourg-based Investment Fund and Public-Private Partnership, managed by EIF ■ Initial funding: EUR 120 m 13 / 18

JEREMIE: increasing the deployment of self-sustaining financial instruments for SMEs 1. EIF at a glance 2. An active role in European Venture Capital 3. New strategic developments a. Tech Transfer b. Fund of Funds c. Clean Tech d. JEREMIE (Cohesion Policy) 4. Conclusions / Next Steps 14 / 18 Need to move away from “grant dependency”

JEREMIE Phases 1. EIF at a glance 2. An active role in European Venture Capital 3. New strategic developments a. Tech Transfer b. Fund of Funds c. Clean Tech d. JEREMIE (Cohesion Policy) 4. Conclusions / Next Steps 2006 2007 - SME SMEs Guarantee schemes 2013 SMEs Venture Microfinance Tech Providers Transfer Capital (MCPs) Activities Funds SMEs Etc … DISBURSEMENT PROCESS IMPLEMENTATION OF Transforming parts of the ERDF grants HOLDING FUNDS into financial products for SME EVALUATION PHASE 15 / 18

Holding Fund Case Study – Leverage at Holding Fund level? National Contribution Structural Funds ERDF (& ESF) 50% Contribution by way of ‘donation’ 50% National Contribution € € € Up to + 50% additional capital by way of loan to Holding Fund Vehicle (with or without State guarantee). Conditional upon Business plan, due diligence and quality of HF Manager Investment Board Holding Fund( « HF » ) € € Financial intermediaries € SMEs 16 / 18 € € Possible Private Market Equity Possible EIB Loan € Microfinance beneficiaries € Banks and/or Pensions Funds to be approached to join as Equity Partners in Fund

Conclusions / Next steps 1. EIF at a glance 2. An active role in European Venture Capital 3. New strategic developments a. Tech Transfer b. Fund of Funds c. Clean Tech d. JEREMIE (Cohesion Policy) 4. Conclusions / Next Steps 17 / 18

Contact European Investment Fund JEREMIE 43, avenue J. F. Kennedy L-2968 Luxembourg Patrice Liauzu EIF Brussels Office Tel. : (0032 2) 2 35 00 71 Tel. : (+352) 42 66 88 212 Fax: (+352) 42 66 88 280 www. eif. org/jeremie 18 / 18