Agris Lauzinieks

1. 2017: Latvia, Lithuania and Estonia in the focus of attention of international investors. Myth or expected reality? Agris Lauzinieks

2. CV: Agris Lauzinieks PROFFESSIONAL EXPERIENCE • Building hedge fund and private equity business • Financier with 8 years risk management experience in The City of Riga and The City of London at such organizations as Standard & Poor’s, Royal Bank of Scotland, Access Bank UK and GE Capital • Has been an Expert at Employers Confederation of Latvia and a Consultant at Latvian British Chamber of Commerce in the United Kingdom • Publishes his views on capital markets in DienasBizness and Kapitāls EDUCATION • Bachelor’s degree in Business Management and Professional Diploma in Economics from Riga Technical University • Participated in Executive Education program at New York University Stern School of Business • Attended lectures at London School of Economics and Political Science and Chicago Booth School of Business

3. GLOBAL ECONOMY: growth still expected

4. GLOBAL ECONOMY: major issue is debt • In global financial system leverage is persistent feature, by using borrowed money investors buy all sorts of assets and pile of debt constantly increases mostly in developed markets • Global debt has become a loan without maturity date as debt constantly gets rolled over • No chance to repay this debt just from income from GDP as global debt exceeds global GDP number of times • Developed markets are root cause of debt pile as they bailed out banking systems and run budget deficits

5. GLOBAL ECONOMY: solutions to crisis • Write off debt in order to reduce risk of hyperinflation and everyone shares the pain, let some countries to go though managed defaults • Invest more in growth markets that can offer faster wealth creation and contribute to growth of global GDP • Develop culture of living within means

6. BALTICS: where they stand • EE: the best in class at AA- just two notches below USA and debt/GDP only at 6% against Euro zone average 87% • LV: the lowest at BB+ below investment grade and debt/GDP at 45% • LT: in the middle at BBB and debt/GDP at 38%

7. BALTICS: what investors see • GDP growth at 1-2% in 2012 slower than expected due to Euro zone crisis, budget surplus • Growth in fixed investment +6%, in exports +4.5% and manufacturing +4.2% in 2013 • GDP per head at purchasing power parity - $18,396 • GDP growth at 2-3% in 2012 driven by contribution of transit and manufacturing • Weaknesses in demographics as Latvian population dropped by 13% in last 10 years and growing inequality as top 20% are 7x better off than the rest • GDP per head at purchasing power parity - $14,506 • Expected growth at 2-3% in 2012 mainly due to manufacturing (+2.7%) and demand from Russia • Good standing in credit markets as country managed to raise $1.5bn ten-year Eurobond in February 2012 • GDP per head at purchasing power parity- $16,884

8. LATVIA: where we are after the crisis

9. RUSSIA: what is going on there ECONOMY • GDP per head at purchasing power parity $15,788 • Oil, fuel & gas contribute 69% to exports • Expected growth 3.5% in 2012 if oil price remains close to $100 per barrel OPPORTUNITIES • Financial sector – benefit from growing wealth in Russia • Manufacturing – significant export potential to Moscow and Saint Petersburg • Transport – ship Russian goods to the West

10. OPPORTUNITY:Latvia - North European Hong Kong? ECONOMY • Population – 7.1 million • GDP per head at purchasing power parity $46,156 • Exports – 52.7% to BRICs market WHAT IS SIMILIAR TO BALTICS • Closeness to BRICs market • Limited natural resources but entrepreneurial and active people • Financial centre and port city WHAT NEEDS TO BE DONE • More business with BRICs – Russia! • Exploit an opportunity in financial market as new regulatory rules for Wall Street and City of London are implemented • Benefit from EU and USA pressure on Switzerland’s banking system

11. BALTICS: in the focus of attention of international investors – YES! • Major sovereign bond investors like low debt/GDP ratios that Baltics can comfortably offer and looking for alternatives • Major financial institutions not present in Baltics and as New York and London gets more restricted on investment banking consider new jurisdictions • Closeness to BRICs economy offers enormous growth potential in the next decade in finance and transport • Riga as largest city in the region has potential to become international financial and business centre • Limited information on these markets internationally and deficit of knowledge about Baltic opportunity • Baltics and Riga can become next Hong Kong if these markets are well positioned internationally

12. AL CAPITAL MANAGEMENT LIMITED: how we can help to earn investors attention PROVIDE FINANCING • We can help raise capital for projects through debt and equity financing • Help companies to merge and assist with buy outs CREDIT RATINGS ADVISORY • Investors need to price the risk – we can help dealing with agencies governments, financial institutions and companies • We can advise how to lower interest expenses or budget deficits MONEY MANAGEMENT SERVICES • We can offer you advice on hedge fund strategies across cash, equities, bonds, commodities and derivative instruments • Advise on wealth protection using structured products with principal protection

13. THANK YOU FOR YOUR ATTENTION! +44-7532-250-224 agris.lauzinieks@gmail.com 29-5 Courtfield Gardens London SW5 0PH United Kingdom