Business Development Bank of Canada

1. Business Development Bank of Canada TechExpo 2004

2. Business Development Bank of Canada • Who we are and What we do • Consulting Services • Financial Services • Investment Services • Venture Capital • Subordinate Financing • Where to find us

3. Who we are • Canada’s small business bank since 1944 • Self-sustaining crown corporation – profitable! • Play complementary role to all major commercial lenders • Over $8 Billion asset base – over $2 Billion in annual lending • 22,000 clients; Customer Satisfaction over 90% • Approx. 80 branches

4. What we do Venture Capital Financial Services Consulting Group Subordinate Financing

5. 5 BDC Consulting • Fully-customized value-added service offerings • Productivity, human resource management, quality, growth, export, e-business • BDC is a leading national provider of ISO (quality) consulting market • Fiscal 2003 achievements • Repeat business reached 46% • Completed 3,625 projects • Total revenues of $18.2 million

6. Financial Services • Traditional term lending • 95% of the Bank’s overall lending activity • A number of different financial solutions but one common theme – money for viable businesses – NO GRANTS! • Two products to look at: • Innovation • Co-Vision

7. Innovation Financing • To support Canadian Business that have opportunity for growth or process improvement but lack funds including MBO situations • A working capital loan with lower security requirements than term loans • Eligibility all BDC eligible clients • Loans up to $250K • Security against fixed assets not always required • Pricing ranges from 3.5 over our base rate and up based on company strength

8. Co-Vision • To promote the creation of new viable businesses • New businesses • A business being established for the first time • An established business that has not registered 12 consecutive months of sales • Business Plan • Repayment over 6 years (includes 1 yr deferred payment) • >$50,000 – secured by fixed assets • <$50,000 – personal guarantee

9. Investment Group: Venture Capital • One of largest VC groups in Canada • Established in 1975 • Over $400M in Assets • Invests in all stages of company lifecycles (seed through expansion • Focuses on: • Technology-based business • -High growth potential • Positioned to be a dominant player in their market

10. Investment Group: Subordinate Financing • Mezzanine, Quasi-Equity, sub-debt, junior debt, etc… many different names but same common principal….. • Hybrid of debt and equity…depending on how it’s structured. • Subordinate refers to the fact that we are behind senior lenders.

11. Sub-Debt (cont’d) • Provide clients with a flexible financing tool that has equity type properties without ownership dilution • Appropriate financing of growth opportunities can lead to greater profitability and viability • Looked on favourably by financial partners – often viewed as equity for covenant calculations • Competitive advantage in the market place. Look at deal sizes ranging from $250k - $5.0M first round • Partner with all other players • Not only high-tech focused

12. Sub-Debt - Applications Sub-debt can be used in three different applications… • Growth Capital • Management buyouts/buy-ins • Mergers and acquisitions

13. Conclusion • Our ONLY focus is growing and assisting Canadian Businesses • BDC tries to fill market gaps to meet the needs of Canadian Businesses

14. Where to find us www.bdc.ca 1-888-INFO-BDC Visit the Branch at 55 Metcalfe