“Guarantee systems in European Union countries – searching for the best model”

1. “Guarantee systems in European Union countries –searching for the best model” Warsaw, 09 February 2011 Speaker – Ceretto Massimo

2. II I III V IV Agenda Guarantee institutions in Italy Some figures Our position in the market Guarantee products W&Ts

3. Guarantee institutions

4. Country distribution Numbers of CGCs by District Source: SME report, Unicredit Bank,2006

5. Guarantee & Basel 2 Basel II compliant guarantees under “ex art. 106” and “ex art.107”

6. Application for guarantee Counter Guarantee (optional) Application for Loan Credit investigation Guarantee contract Credit investigation 1 2 4 3 5 6 SME Counter Guarantor Bank CGCs Framework of guarantee

7. Shareholder base FINPIEMONTE PARTECIPAZIONI SPA 18,22% Piedmont Region Finance Company Main Banks 23,74% SMEs Member enterprises 51,20%

8. Eurofidi at a glance • BBB+, Outlook: stable • BBB, Outlook: negative • Personnel approx 400 • Banking agreements 140

9. 5 Regional HQs Guarantee Department Organization Supervisory Board Board of Directors Executive Committee Chief Executive Officer Chief Risk Officer Auditor 28 Branches

10. Eurofidi rules Coverage ratio Ceiling Guarantee fee • up to 6,8% upfront fee depending on the credit rating of the enterprise and available counter guarantee • 50 ~ 80% depending on the credit rating of the borrower and available counter guarantee. • Normal ceiling for a single enterprise : Euro 4,4 million • Special ceiling for group enterprises : up to 25% of Total Capital

11. Management of Defaulted Loan • Eurofidi notified of the enterprises’ default mainly from creditor institution. • Upon receiving the notification, Eurofidi initiates default handling procedure. Notification of Default Default handling Preservation of Property

12. Claims for Payment Claims for Payment • When the enterprise defaults, the creditor institution makes claim for payment to Eurofidi. • After evaluating the claim, when there are no causes for exemption, Eurofidi makes payment under guarantee. Evaluation Payment under Guarantee

13. Recovery from Payment • Eurofidi is subrogated to creditor’s claim and gains the right recover to its payment. • Only when there is no way to recover payment, Eurofidi stops collection. Collection • Lawsuit • Auction • Exercise of • security right Recovery of Payment

14. Guarantee Market *Source: Bank of Italy, Regional Economies-Economic developments in the Italian regions

15. The Marketplace

16. Products Short term loans Revolving loans Mid long term loans Leasing Tranched Cover Special loans such as (Flood, Usury…) Working capital Rescheduling agreements Restructuring

17. Weakness CGF Basel 2 compliance is a temporary counter crisis measure. What will a happen after the CGF deadline? W&T Threats Transfer the guarantee RWA benefit to the SMEs and not only to the banks.

18. Contact Eurofidi S.c.p.a. Via Perugia, 56 10152 Torino – Italy Massimo Ceretto, Chief Risk Officer m.ceretto@eurogroup.it Office: +39 011 24 191

19. This presentation is made purely for information. We have tried to give relevant information which we believe will help in knowing our experience. The viewers may use their own judgment and are advised to make their own calculations before deciding on any matter based on the information given herein. While every care is taken to verify the accuracy of the information given in this presentation, neither the Eurofidi nor its officials would in any way be liable for any action taken or not taken by the viewers or the users of this presentation or for any claims, losses etc.