EIB Venture Debt as Growth Capital

Contents What is EIB’s venture-debt? Who is it for? What are the key terms of EIB’s Growth Capital financing? Key advantages What are the key requirements for a successful application? Who has benefitted so far from it? How can one apply for it?

Brief introduction Venture debt: Direct financing provided by EIB where the expected return depends on the success of the underlying success of the investment program being financed Who is it for: High growth SMEs and MidCaps that have already underwent at least Series B / C equity financing rounds, looking to further accelerate growth

What are the key terms of EIB’s venture debt financing? EIB’s Venture Debt financing is typically provided under the European Growth Finance Facility (“EGFF”): Indicative Term Sheet Borrower up to 3,000 employees Instruments Quasi-equity debt Purpose To finance an investment budget Co-investment EIB finances maximum 50% of eligible project costs, co-investment with third-party sources or own resources Ticket EUR 7.5m – EUR 50m Tenor Usually 5 to 7 years after drawdown Availability Up to 3 years after signature Pricing Target return commensurate to the risk, may include one or more of the following: - cash interest - compound interest (PIK) - warrants - profit participation, etc. Covenants Case-by-case basis Security Un/Secured Fees Certain fees applicable Appraisal Usually between 3 and 5 months

EIB Venture Debt comparison EIB Venture Debt positioning Venture Capital EIB Venture Debt Bank term loan Typical term 3-5 years 5 years bullet 5 years amortising Availability period Immediate disbursement Gradual availability up to 2-3 years 1-2 years Typical financing size EUR 1-15m EUR 7.5-50m > EUR 10-100m Cost €€€€€ Performance based €€ € Fixed Return structure Strong dilution <10% dilution None Key requirements High growth business plan High growth, credible business plan, post series B/C Stable cash flows, large asset base, security, history of positive net income * Some of the above figures are generalizations. Final figures are usually subject to due diligence and rating or risk/return approval

Key advantages Companies Long term strategic view Stable and reliable source of capital – we are a triple-A investor Less frequent rounds - the company can focus on business instead of raising financing Flexible terms Customized structure Founders and investors Limited dilution IRR enhancement Hands-off approach with no direct involvement in daily management

What are the key requirements for a successful application? Stable and experienced management team Sustainable capital structure Professional corporate governance and code of conduct Raised equity in the past (series B,C rounds) Sustainable business model, business plan and strategy providing credible growth perspectives

Application process Approval: Stage I Process Steps Documents (1-2 months) Process Steps Documents Company to submit investment memo presentation: Business description, financials Ownership and 3rd party financing Corporate governance Management, employees, etc. Investor Memo Non-Disclosure Agreement KYC checks Fee letter Member State Opinion Due diligence questionnaire Draft Term Sheet Final Note Draft contract Final contract CP checks Disbursement request Monitoring & reporting Approval: Stage II (1-3 months) Due diligence meeting Due diligence package Meeting with management and key people Consultants / Any other relevant information Approval: Stage III (1-2 months) 2nd and final Management Committee approval Term sheet to be in agreed form Detailed analysis package prepared External legal counsel to be appointed Negot. & Closing (1-3 months) Contract closing & CPs Monitoring

Who has benefitted so far from it? EIB venture debt product launched in 2015 – unique features, no market precedent First venture debt operation closed in January 2015 with Innocoll AG In November 2016, EIB moved the venture-debt program under the Junker Plan More than 2,500 financing requests reviewed since inception Current portfolio includes 60 signed operations for a total of more than EUR 1bn Team of 23 people in the front office and dedicated teams of risk, legal, technical and monitoring experts total more than 120 people

Quasi-equity operations – page 1 Software Finland € 15 million 11/09/2015 Search engine France € 25 million 23/12/2015 Software The Netherlands € 13.5 million 22/01/2016 Fiber optic networks England € 25 million 17/12/2015 Electronics France € 12 million 11/04/2016 HIV Testing Sweden € 10 million 10/07/2015 3D printers The Netherlands € 10 million 04/07/2016 Biotech Germany € 25 million 27/03/2015 Biotech equipment Portugal € 12 million 27/11/2015 Biotech Germany € 10 million 02/12/2015 Medical Equipment Finland € 8 million 18/03/2016 Food production Greece € 15 million 06/05/2016 Biotech France € 20 million 21/12/2015 Disease diagnostics Finland € 15 million 13/07/2016 Fiber optic networks UK € 25 million 08/07/2016 Waste collection Finland € 15 million 11/07/2015 Vaccines France € 25 million 12/07/2016 Flexible displays Finland € 12 million 13/07/2016 Insurance software Ireland € 15 million 22/06/2016 eCommerce software Finland € 8.5 million 22/06/2016 Photovoltaics Germany € 20 million 11/09/2016

Quasi-equity operations – page 2 Biotech Austria € 25 million 28/08/2017 Fibreoptics Spain € 10 million 21/10/2016 Software The Netherlands € 7.5 million 09/11/2016 Biotechnology Ireland € 20 million 01/12/2016 Software Greece € 25 million 16/12/2016 Biotechnology NL/DE € 25 million 16/12/2016 Ultra capacitors Estonia € 15 million 10/02/2017 Grid stabilization Italy € 30 million 11/04/2017 Database software Finland € 30 million 12/04/2017 Dermatology Germany € 20 million 19/05/2017 Molecular diagnostic Spain € 20 million 01/06/2017 Software Sweden € 8 million 21/06/2017 Medical Technology France € 20 million 07/07/2017 ICT Finland € 15 million 12/07/2017 ICT Sweden € 30 million 04/08/2017 Medical Technology Germany € 35 million 08/08/2017 Medical Technology Germany € 30 million 10/08/2017 Medical Technology Austria € 25 million 28/08/2017 Biotech France € 30 million 11/09/2017 Biotech France € 20 million 06/10/2017 Photovoltaic glass France € 15 million 05/10/2017

Quasi-equity operations – page 3 Data centers Sweden € 10 million 31/10/2017 Scientific education Portugal € 10 million 06/10/2017 Medical Technology Germany € 25 million 08/11/2017 3D printers Germany € 25 million 09/11/2017 Biotech France € 40 million 23/11/2017 Heat engines Germany € 30 million 01/12/2017 ICT The Netherlands € 7.5 million 07/12/2017 Fitness technology Germany € 25 million 14/12/2017 Software Germany € 25 million 14/12/2017 Cyber security Sweden € 20 million 18/12/2017 ID solutions Sweden € 29 million 18/12/2017 Li-ion batteries France € 20 million 18/12/2017 ICT The Netherlands € 10 million 15/12/2017 Medical Technology Germany € 40 million 08/01/2018

Summary Large tickets – from EUR 7.5m up to EUR 50m Longer tenors – 5-year terms with availability of 2-3 years No dilution – except in cases with small upside Reliable investor – long-term strategic view Quality stamp – detailed due diligence Hands-off approach – no direct involvement in daily management

Thank you!