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

1. European Investment Fund Graham Cope Head of Region, Northern Europe 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. European Investment Fund’s Role The Nordic Innovation Fund Proposal Key advantages Next Steps Supporting Information Agenda 1

3. EUR 5.4bn net commitments to Private Equity and Venture Capital funds at end 2010 As Primary FoFs investor (over 300 funds) Biggest Fund-of-Funds investing in European VC Repeat cornerstone investor in top quartile teams in Europe Catalytic role through recognised thoroughness and quality of its due diligence process Significant Nordic portfolio and experience EIF’s role: Primary Fund-of-Funds Investor Long-term Relationship with best GPs in Europe

4. EIF’s views on the Nordic market • The Nordic market is one of the most mature in Europe • EIF has strong record of investments across the region • Deep technology leadership available in several segments, e.g. Cleantech, Life Sciences, ICT/Mobile • High quality university and research institutions • Recent success stories such as e.g. QlikTech, Skype and Spotify, raises the awareness of international investors • Timing is right. European Commission and EIB Group ready to do more as market needs become urgent Public Private Leveraging of EIF Capacity and Experience

5. A number of studies have highlighted the declining level of equity investment in growth-focussed companies across the Nordic region* A significant number of Fund Managers have withdrawn from the sector or simply closed operations Financial turmoil has decreased the private markets level of interest and courage to engage in earlier stage equity investments The region’s leadership qualities in Cleantech, Life Sciences and ICT/Mobile sectors may become starved of the risk financing that it needs, putting at risk future growth opportunities The problem for the Nordic Region *Nordic Venture Capital: Cross Border Investments – Menon Business Economics December 2010 Nordic Baltic Investment Funds – EIF and Nordic Investment Solutions November 2009

6. EIF as Manager of National Funds-of-Funds • ERP Germany (launched in 2004) Co-investment 50/50: EIF/ERP (German Ministry BMWi) • Size: € 1bn - € 642m committed in 20 funds • LfA-EIF Germany Co-investment Bavarian Ministry of Economics LfA Förderbank, Bayern EIF. • Size € 50m - € 26m committed in 4 funds • NEOTEC: Spanish Technology Fund-of-Funds Tech fund in partnership with CDTI (TMT, ICT, clean-tech, bio-tech and LS) • Size: € 183m - €117m in11Funds and Co-investment Agreements • Istanbul Venture Capital Initiative Turkish generalist VC investment vehicle for institutional investors • Size: € 160m - 2 funds signed for a total of €21m • Portuguese Venture Capital Initiative Generalists funds, ICT, Life Sciences, Healthcare, Environmental & Energy Technology • Size: € 111m – 2 transactions signed for a total of € 30m • Dahlia: Pan-European Fund-of-Funds Joint initiative between EIF and Natixis Private Equity (NPE) • Size: € 300m - over 60% of Dahlia funding has now been committed • UKFTF: UK technology Fund-of-Funds Launched by the UK government and advised by EIF • Size: £200m at first closing to be invested in Funds targeting UK start-ups and growth businesses in the high tech sector – 3 investments signed for £28m Public Private Leveraging of EIF Capacity and Experience

7. EIF discussion partners Sweden Industrifonden Innovationsbron Ministry of Enterprise, Energy & Communications Ministry of Financial Markets Tillvaxtverket (Economic Development Agency) Swedish Venture Capital Association IVA in Sweden (Innovation Academy) Finland Finnvera Venture Capital (formerly VeraVentures) Finnish Industry Investment Finnish Venture Capital Association Ministry of Employment and the Economy Norway Argentum Innovation Norway Ministry of Industry and Trade Norwegian Venture Capital Association Denmark Vaekstfonden Ministry of Economic & Business Affairs Iceland NSA (New Business Venture Fund) Ministry of Industry, Energy and Tourism Plus many market players through conferences and meetings – not a single negative voice

8. Develop an implementable structure that addresses the continued market deficiencies in the provision of equity capital to the regions innovative growth companies Catalyse a process that stimulates and maximises the engagement of private capital in this growth-creating sector Create a funding mechanism that boosts the ‘Green growth’ opportunity and positioning that the Nordic region currently enjoys Utilize EIF’s experience*, capital and reputation to create a dedicated vehicle that employs the best market practices and disciplines Put simply, EIF believes its raison d’etre is to address the highlighted problems through proven mechanisms and in partnership with the Nordic governments EIF’s objectives *EIF currently manages 7 different Fund of Funds structures in partnership with member States across Europe. The committed capital exceeds EUR 2.1 billion and has invested into over 50 different funds.

9. EIF’s proposed Nordic Innovation Fund Public Private Leveraging of EIF Capacity and Experience

10. The Tool box • Fund of Funds: 3 major themes: ICT with focus on mobile technologies, Life Sciences with focus on Biotech and Medtech, and Cleantech with focus on Renewable Energy and Energy Efficiency. Objective: active involvement of corporates/strategic investors in the VC ecosystem; • Co-Investment Facility: about 70% of seed and start-up investments in innovative technology companies are estimated to be done by non- institutionalised investors such as business angels, family offices and corporate venture arms. This instrument will leverage these investors by providing them with co-investment capacity; • Technology Transfer Accelerator: investments in technology transfer structures to enhance efficiency and support pre company creation/pre-seed structures from university and research institutions.

11. The Nordic Innovation Fund will:- Create a significantly important level of risk financing targetting the key sectors of prosperity for the future of the Nordic Region; Address the negative market trends of reduced investment levels and departing fund managers; Deliver an implementable structure that is designed to attract greater levels of private sector participation and use EIF’s proven competence in managing such structures; Adopt a governance structure will allows all stakeholders to participate and steer the implementation towards the agreed objectives; Deliver a concrete and action-oriented example of Nordic Council collaboration. Key Advantages

12. Timetable and Next Steps • Research and Discussion phase – completed • Formal Proposal issued – June 2010 • Ministers Meeting – October 13th • Formal ‘Go or No Go’ decision from each Government – March 2012 • Formalised commitment (MoU and contract) – mid 2012 • Operational Launch – January 2013

13. Contact European Investment Fund 96 boulevard Konrad Adenauer L-2968 Luxembourg Graham Cope, g.cope@eif.org Tel: + 352 42 66 88 236 www.eif.org

14. Disappearing market players in Nordic Region