How can we provide appropriate finance for breakthrough innovation? Funding - How can we provide appropriate finance for breakthrough innovation? Helmut von Glasenapp, Secretary General ELTI Sofia, 14. June 2018

European Association of Long-Term Investors (ELTI) a.i.s.b.l. ELTI - Members 28 members including: -> 21 NPBIs from 19 EU Members States -> 2 International Financial Institutions (IFIs) -> 3 public financial institutions -> the Turkish NPBI TSKB -> Long-Term Infrastructure Investors Association (LTIIA) combined balance sheet total: 1.700 bn EUR* and European Investment Bank (EIB) as Permanent Observer * 31.12.2016 European Association of Long-Term Investors (ELTI) a.i.s.b.l.

European Association of Long-Term Investors (ELTI) a.i.s.b.l. ELTI - Governance President: Laurent Zylberberg, Director Caisse des Dépôts et Consignations Vice-Presidents: Antonella Baldino, CBO Cassa Depositi e Prestiti Lutz-Christian Funke, Secretary General KfW ELTI Secretary General: Helmut von Glasenapp European Association of Long-Term Investors (ELTI) a.i.s.b.l.

NPBIs bridge The role of NPBIs d Public administration budget/grant culture d Private sector/markets financial instruments culture NPBIs bridge Publicly owned and controlled Promote public policy Capacity to assess the public value Advisory role Commercially run on sound banking principles Not for profit Political independence Proximity and knowledge of local clients European Association of Long-Term Investors (ELTI) a.i.s.b.l.

European Association of Long-Term Investors (ELTI) a.i.s.b.l. The role of NPBIs II Instrument of public policy (-> state owned) Intervention with market means (-> theory of market failure) Customized to the needs in the respective EU Member State (-> different business models) Higher impact of public budget due to loan financing and leverage; crowding-in of private investors Foundation of new NPBIs (-> Ireland, The Netherlands, Malta, Romania) European Association of Long-Term Investors (ELTI) a.i.s.b.l.

European Association of Long-Term Investors (ELTI) a.i.s.b.l. The role of NPBIs Subsidiarity (European- vs. National level) National environment and needs (e.g. different level of risks) Proximity and knowledge of local clients (e.g. presence) Co-operation with national authorities Financing of small projects Financing of projects with higher risk (Venture Capital, subordinated loans, etc.) Active in most EU Member States European Association of Long-Term Investors (ELTI) a.i.s.b.l.

European Association of Long-Term Investors (ELTI) a.i.s.b.l. The role of ELTI Discussion platform Exchange of experiences and ideas Platform for common co-operation Platform for discussion with EIB, EIF and EU institutions European Association of Long-Term Investors (ELTI) a.i.s.b.l.

Bulgarian ultra light aircrafts Aeroplanes DAR Bulgarian ultra light aircrafts In 2015, Aeroplanes DAR receives a loan from Bulgarian Development Bank, amounted to EUR 50.000,-. With this support the company manages to produce and certify the latest DAR Solo machine model. Today DAR ultra light aircrafts are flying in the USA, the UK, Austria, Germany, Russia, Australia and Brasilia. European Association of Long-Term Investors (ELTI) a.i.s.b.l.

EFSI thematic IP for Italian SMEs MIL-IIV033-27092012A-76441/MBU EFSI thematic IP for Italian SMEs Investment Platform Structure and Rationale SMEs Risk Sharing umbrella under SMEw Additionality Crowding-in of Private Sector More access to finance for SMEs Blending of EU Funds Leverage effect Rationale New Loans 20% Fis’risk retained capped at EL level 80% (counter) guarantee FIs Max 80% Guarantees Sub-Intermediaries Max 80% (counter) guarantee Investment Platform – Risk Sharing CDP-EIF in SMEw 50% Counter-guarantee EIF/EFSI SMEW (COSME) 20% Risk retained CDP own risk 30% Counter-guarantee CDP/EFSI-like guarantee European Association of Long-Term Investors (ELTI) a.i.s.b.l.

Thank you very much for your attention Helmut von Glasenapp Secretary General European Association of Long-Term Investors a.i.s.b.l. (ELTI) Rue Montoyer 51 1000 Brussels Belgium vonglasenapp@eltia.eu +32 (0)460952632 www.eltia.eu European Association of Long-Term Investors (ELTI) a.i.s.b.l.