Key learnings of managing COMPETE-supported Venture Capital funds

1. Key learnings of managing COMPETE-supported Venture Capital funds FIN-EN Meeting in Lisbon Lisbon26th September2013

2. Espírito Santo Ventures in brief • Solidity and experience • Venture Capital funds management company, with 13 years industry experience • Integrated in BES Group, with full autonomy in investment and divestment decisions • Over EUR 250 million in assets under management, in 5 active funds • A seasonedteamofexperiencedprofessionals • Clear investment focus and strong expertise • Focus on areas of great challenge and growth: CleanTech, Information Technology and Healthcare & Well-being • Clear investment criteria and strong investment selection capabilities • Global reach • Global deal flow, with no geographic restrictions • Strong global VC partnership, reinforcing the flow of attractive investment opportunities, attracting foreign investment to Portuguese companies and opening doors for all portfolio companies • Commitment to value delivery • Investments in 53 companies, 8 trade sales, 2 IPOs • Strong engagement in the management of the portfolio companies • Active investor relationships 1 2 3 4

3. 13 years experience in Venture Capital investmentOver €250m under management Solidity and Experience 1 … 2000 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 ESTV ESV II ESV III Inovação e Internacionalização ISTART I New fund The inception: Espírito Santo Tech Ventures – ESTV Organized as a VC holding company in 2000 €70m invested in 12 companies, between 2000 and 2004 Our core global VC funds, ESV II andESV III ESV II – €88.5m, 18 investments, working on divestment phase (3 exits to date) ESV III – €75.3m, 17 investments, closing in on the end of its investment period (2 exits to date) Funds for early stage investment in Portugal attracting investments with strong potential “Inovação e Internacionalização” – €10m for growth companies, 5 investments to date “ISTART I” – €3m for seed financing, 7 investments to date Planning for new international funds and initiatives Structuring new international VC fund, with initial closing in 2014

4. Clear investment criteria forEspírito Santo Ventures’ Funds The company must: Clear investment focus and strong expertise 2 Companies that can only deliver incremental change can not create a significant value • Be the best in its field, with a unique business model or technology Companies addressing a local or a small niche market will remain local or small in their impact • Have a global addressable market of at least USD $ 1 billion A very significant return to our investors is key to the success of our venture investment activity An outstanding technology is not sufficient to drive a company’s success if it isn’t led by the right people • Offer a valuation potential of at least 5x, in the medium term • Have knowledgeable, honest and resilient managers

5. A clear focus on three areasof great challenge and potential growth Clear investment focus and strong expertise 2 • Our funds invest in areas that are closely related with what we believe to be the XXIstcentury global challenges • Environment, demography and global development CleanTech Informationtechnology Healthcare and Well-being Global warming is raising awareness about the need to preserve and recover air, water and soil quality We invest in technologies that can support a sustainable and environment-friendly development Technologies to facilitate the communication and optimize the business relations and processes will play an important role in global development We invest in technologies and processes that can create significant value in bridging individuals and organizations The increase in lifespan and the aging of the population are creating new healthcare needs We invest in technologies to solve these problems and increase the well-being and quality of this extended life • New / renewable energy sources • New efficient and non polluting industrial / agricultural processes • Energy efficiency • Desalination and water efficiency • Natural resource efficiency • Information technologies • Communication technologies • New payment solutions • Semiconductors • Electronics • Diagnosis and therapeutic procedures and devices to increase the quality of the modern extended life expectancy • Healthy food and beverages

6. Extensive experience in investing worldwide – portfolio companies Global reach 3 Long standing experience in investing and co-investing with some of the best VCs in different markets provides a rare knowledge of best-in-class venture practices

7. A consistent growth in national investment opportunities, with no loss of quality 670 532 488 233 110 70 52 Source: Espírito Santo Ventures’ deal flow database

8. A unique knowledge of the Portuguese startup community By Region – predominance of tech centers in Lisbon and the Northern regions Trás-os-Montes E Alto Douro By Stage – Even distribution with preponderance of seed/early stage By Area – More than half of the deal flow is IT-related Minho Deal flow by region 2010/2013 Porto Porto Aveiro Aveiro Beira Interior Viseu Coimbra Coimbra Leiria Leiria • Ribatejo Lisboa Lisboa Madeira Madeira • Setúbal • Alentejo <3,0% A A ç ç ores ores 3,0% << 10,0% 10,0% << 15,0% 15,0% << 33,0% • Algarve >33,0% Source: ESVdeal flow database

9. Venture Capital investment plays an important role in society Successful Venture-backed companies show evidence of superior economic importanceand greater resilience through the downturn Through the downturn: 2008-10 Other benefits, at a domestic level, include aspects like catalyzing knowledge and IP, creating qualified jobs, capturing wealth (through exports), or attracting foreign investment Source: National Venture Capital Association – Venture Impact - The Economic Importance of Venture Capital-Backed Companies to the U.S. Economy

10. Our portfolio is proof of that role Growing business of our portfolio companies... ...impacting their respective employment numbers All companies Portuguese companies All companies Portuguese companies 632 8.741 445 5.396 4.528 217 2.418 135 Source: Espírito Santo Ventures, portfolio companies

11. ESV is managing two fundsparticipated by COMPETE ISTART I proving the concept of seed financing in Portugal Innovation and Internationalization (“I+I”) Fund supporting early stage companies The application to a COMPETE-supported fund was born of a joint will between ESV and BES in late 2009 The €10m fund was established in early 2012 to support early stage companies with a strong focus on internationalization Up to €1,5m per company, per year • In 2009 ESV was approached by IST’s Management Board to establish a financial instrument to promote entrepreneurship in the University • Coincided with the launch of the COMPETE process and matched the objectives of its Seed investment component • The €3m fund was established in early 2012, aiming to support technology-based projects by researchers from any Portuguese university or research institute • Up to €300k investment per company Private investors

12. Seven ISTART I investments, to date, fromseveralsourcesofdealflow ISTART I Main deal flow source institutions for ISTART I Institutions with an ISTART I portfolio company

13. I+I Fund supporting early-stage companies with ambitious internationalization plans Innovation + Internationalization

14. Investment from these funds has helped unlock investment from other investors, including foreign Co-investors in ISTART I and I+I portfolio companies Corporates VCs Business Angels/ Institutional investors ISTART I / I+I assumed a lead/co-lead role inalmostalldeals Foreign investors

15. Improving the effectiveness of the capital to be deployed means maximizing… ...the attractiveness to private investors, including international ...the attractiveness to the best fund managers ...the economic impact of selected companies Ensure that investors' best interests are protected by minimizing any limitations that in any way limit the ability of the funds to provide financial returns Ensure that fund managers are rewardedin line with the market, so as to attract the best fund managers, those who offer the capacity to adequately deploy the funds Ensure that only (and most of) the companies who offer a large potential of impact are supported, and they are supported to the fullest extent possible

16. A few practical suggestions toimprove current practices 1 • Review strictness of the geographic limitation • Supporting “Portuguese companies”, is about supporting companies created in Portugal that create and retain value in our country • Often, as part of their development process and for the best reasons, the best companies will be motivated to move HQ abroad • Preventing investment or imposing exits in those cases is not in the company’s or the investors’ best interests • Recognize the need and gain the ability to support the best companies through their development • Inability to provide support past a certain stage or amount (including across funds) is not in the company’s or the investors’ best interests • Strive to incentivize good deployment, not necessarily fast deployment • Current fee structure creates the incentive to quickly call and deploy the capital • Ensure competitiveness of the offer to funds managers • A competitive fixed and variable fee structure • Trust and verify, rather than imposing disproportionate reporting requirements 2 3 4

17. In short, experience in investment supported by COMPETE has been positive and should be amplified • It has enabled the creation of Venture Capital funds, vital to the development of the economy • It has succeeded in attracting private investors into those funds • It has been deployed in a number of high potential companies • Successfully making the transition between academia and the business world • Helping highly innovative companies grow internationally • It has succeeded in attracting foreign investment into these companies • A positive experience that should be amplified • Which is in line with the rise in demand and in investor interests • Still, there are opportunities to improve the effectiveness of the capital to be deployed