Europe’s Leading Developer of Risk Financing for Entrepreneurship & Innovation

1. European Investment Fund CIP Innovation Norway 19 October 2011 Europe’s Leading Developer of Risk Financing for Entrepreneurship & Innovation This presentation was prepared by EIF. The information included in this presentation is based on figures available for March 2011Any estimates and projections contained herein involve significant elements of subjective judgment and analysis, which may or may not be correct.

2. Agenda • Introduction EIF • Venture Capital Fund investments – main principles • Competitiveness and Innovation Framework Programme

3. EIF at a Glance EU specialised institution for SMEs, risk financing Venture Capitaland Mezzanine (fund of funds) Structuring and Guaranteeing portfolios of SME and microfinance loans/leases Authorised Capital € 3bn EIB: 62% EU: 30% Fin. institutions: 8% Geographic Focus / Intermediaries EU 27, EFTA, Candidate Countries Distributing through Banks and Funds AAA rated Staffing, Culture and Values Leading-edge modern institution Adapting to changing market conditions Attracting talented staff High standards of compliance and integrity Dual Objective of Meeting EU Policy Goals & Generating a Satisfactory Return on Equity

4. EIF’s Shareholders • EIB: Main shareholder (62%) • European Investment Bank’s shareholders: 27 EU Member States • European Community represented by the European Commission (30%) • 25 public and private financial institutions from 17 countries (8%) including:

5. Operating Model of EIF Transformational Role of EIF Intermediaries Transformational Key Success Factors Suppliers / Mandators SMEs • Own resources • EIB (RCM, MEZ) • EC (CIP) • MA (JEREMIE) • MS (ERP) • Funds of Funds • Regional (LfA) • Product Development • Mandate Management • Transaction Execution • Risk Management • Follow-up & Relationship Focus • Commercial Banks • Development & Promotional Banks • Guarantee Institutions • Fund Managers VALUE ADDED

6. Vision & Medium Term Strategy 7 Key Objectives • Maximise impact on the smart, sustainable and inclusive growth of medium, small and micro enterprises in the EU Accession and EFTA Countries • Cornerstone European Growth and Venture Capital and catalyse a maximum level of new SME financing • Leverage own capital and mandator’s risk capacity to catalyse EUR 10bn to 13bn Equity, Mezzanine and Debt annually • Generate EUR 70-80m operating profit at 40 – 45% cost to income and at a long run ROE of 5 to 6% • Establish value creating Risk Management – AAA rating • Build integrated, stable, scaleable systems and processes • Promote and enhance an excellent internal and external reputation Europe’s leading developer of risk financing for entrepreneurship and innovation

7. Agenda • Introduction EIF • Venture Capital Fund investments – main principles • Competitiveness and Innovation Framework Programme

8. The PE/VC Market Covered by EIF INNOVATION VENTURE CAPITAL PRIVATE EQUITY Business Angels, Side Funds,Pre-Seed SeedStage EarlyStage ExpansionDevelop-mentCapital Mid-Market Later-stageBuy-out StockExchange/PublicEquity TechTransfer/Incubators EIF INVESTMENT FOCUS

9. Technology Transfer - Converting Research into Products for the Market Technology Transfer Marketable Product R&D “prototype IP” “technology IP” University / Research Organisation Market Spin-out Licensing Collaboration (contract research,…) IP / Idea

10. Since 2005, EIF has been able to invest resources to understand Tech Transfer, to create awareness and to develop new TT initiatives with leading research universities Focus is on research organisations which are leaders in their respective fields and act in an entrepreneurial environment Accelerated process through framework agreements (covering issues such as company valuations, shareholder structure,…) Several transactions already, in which EIF has had a key role Chalmers Innovation Leuven CD3 UMIP Premier fund with Manchester University IP Venture fund UK Karolinska Development Co-Investment Fund EIF's Tech Transfer Improves the Commercialisation of Research Provider of Innovative Solutions to VC Constraints

11. Venture and Growth Overview • Core activity in venture with commitment to growth and lower mid-market. • Focus on cutting-edge technology in Venture portfolio (55% in ICT and Life Sciences) • First mover in Europe's emerging markets and new market segments (cleantech) Key Investor in Major Markets Increased Finance to Support less Developed Markets

12. As Primary FoFs investor Biggest Fund-of-Funds investing in European Venture Capital Repeat cornerstone investor in top quartile teams in Europe Catalytic role through recognised thoroughness of its due diligence process Backing first time funds managed by tomorrow’s top quartile teams Primary Fund-of-Funds Investor Long-term Relationship with best GPs in Europe

13. €5.4 bn Net Equity Commitments across Europe at 31.12.2010 EUR m Lithuania 40 Luxembourg 21 Malta 8 Netherlands 109 Norway 20 Poland 92 Portugal 155 Romania 36 Slovakia 4 Spain 424 Sweden 280 Switzerland 81 Turkey 274 United Kingdom 1306 Other & Non EU 361 Austria 54 Belgium 83 Bulgaria 13 Cyprus 7 Czech Republic 28 Denmark 95 Estonia 7 Finland 115 France 768 Germany 558 Greece 15 Hungary 16 Ireland 89 Italy 267 Latvia 36 Venture & Growth Capital Portfolio EU 27 EU Candidate Countries EFTA/EEA

14. Few EIF VC investments made in Norway so far • RCM • Northzone VI • CIP • Guarantee to Cultura Sparbanken • …but several investments made in Norwegian companies through EIF funded funds • A total of EUR 110m invested in 22 companies since 1999 • Examples include AppearTV, It’s Learning, EnergyMicro, ClavisPharma, Wright, Green Energy Group • …and one board approval for CIP – Procom Capital

15. Agenda • Introduction EIF • Venture Capital Fund investments – main principles • Competitiveness and Innovation Framework Programme

16. Competitiveness & Innovation Framework Programme (CIP) • Purpose • Encourage the competitiveness of European enterprises • Support innovation and entrepreneurship activities • Provide better access to finance • Promote the increased use of renewable energies and energy efficiency • The European Commission has mandated the management of the CIP financial instruments to EIF • CIP budget - total envelope for VC : € 550m to be invested over a period 2007-2013

17. Competitiveness & Innovation Framework Programme (CIP) GIF Investments 22 DEALS SIGNED to date for over € 270m 360 Capital One 3T Telecom Technologies Transfert Albuquerque FCR Baltcap Private Equity Fund Bullnet Capital II Cape Regione Siciliana Capricorn Cleantech Fund Chalmers Innovation Fund Conor Technology Fund II Creathor Venture Fund III Demeter Fund II Dritte SHS Technologie GmbH & Co. KG Fountain Healthcare Partners Fund I HPE PRO Institutional Fund Inventure Fund Ky (ex Holtron) Newion Investments II NorthCap IVS III Pentech Fund II Pinova Fund I Serena Capital UMIP-MTI TTA Fund WHEB Ventures Private Equity Fund II Countries covered by CIP GIF and targeted by the agreements signed Other countries covered by CIP G GIF but where no agreements have been signed to date Other countries and territories

18. CIP Investment Criteria – Venture Capital (1) • Focus on early (seed and start-up) to expansion stage • At least 50% of fund to be invested in innovative SMEs • SMEs to be defined according to the European Commission Recommendation 2003/361 of 6 May 2003 as enterprises which prior to first investment (i) have less than 250 employees; and (ii) according to the most recent balance sheet show either (a) an annual turnover not exceeding EUR 50m or (b) an aggregate balance sheet not exceeding EUR 43m; and (iii) conform to the criterion of being an “autonomous enterprise” as defined in the above-mentioned Recommendation.

19. CIP Investment Criteria – Venture Capital (2) • Independent fund managers • Ownership / control of management company • Independence of investment decisions • Market-oriented investor base • Minimum 50% (without counting the CIP investment) • Pari passu principle to apply for all investors

20. Contact European Investment Fund 96 boulevard Konrad Adenauer L-2968 Luxembourg Tel.: (+352) 42 66 881 Fax: (+352) 42 66 88 200 www.eif.org