Funding of Investment Opportunities in Slovakia January 2018

SZRB Asset Management current activities Manager Advisory Manager EFSI SIH – Fund of Funds Implementation of ESIF in Slovakia using Financial Instruments Investment Plan for Europe - EFSI Local entry and advisory point for EFSI, EIAH, EIPP SZRF – JEREMIE Implementation of JEREMIE Funds in Slovakia since 2016

SIH - Slovak Investment Holding An initiative proposed by the Ministry of Finance of the Slovak Republic to support national investment priorities Centralised and more efficient implementation of ESIF via financial instruments in Programming period 2014-2020 Mandate: Government Resolution ESIF allocation: min. 3% from each Operational Programme Expected total allocation: approximately EUR 552m Manager: SZRB Asset Management Supervisory Board: nominees from MoF and Managing Authorities Investment strategy: in line with Operational Programmes Mechanism: Fund of funds The Slovak Government created the Slovak Investment Holding: a fund of funds for the implementation of the ESIF in the 2014-2020 programming period via Financial Instruments Various benefits of implementing ESIF via Financial Instruments instead of via grants exist; e.g. FIs are repayable and allow leveraging from the International Financial Institutions and qualified private investor money Following the government resolution, 3% of each Operational Programme will be allocated to Slovak Investment Holding which represents approximately 552 million (ESIF + National co-financing) to be used for financial instruments The manager of the SIH, SZRB Asset Management, is a 100% subsidiary of Slovak Guarantee and Development Bank (SZRB). SZRB is operating on a commercial basis and is fully owned by the Ministry of Finance SZRB AM will manage the fund of funds and propose the investment strategy which will then be approved by the Supervisory Board of the Slovak Investment Holding where all Managing Authorities of the respective Operational Programmes are represented

SIH – investment areas allocations Financial Instruments Sub-funds OP Allocation or Financial Instruments Equity Mezzanine Soft Loans Guarantees Infrastructure Fund ✔ Energy Efficiency Fund Waste Management Fund SME Fund Social Economy Fund Fund of Funds EURm The Investment strategy according to the Ex-ante Assessment identifies areas suitable for the use of financial instruments, quantifies market gaps, and proposes investment strategy in terms of financial instruments to be used and the allocation to each instrument Suggested are 6 thematic sub-funds… The ex-ante assessment identified a gap of EUR 1,305m Actual allocation is now at EUR 545m (42% of ex-ante proposed total allocation)

SIH Investments Infrastructure (direct) Energy Efficiency Mezzanine tranche in PPP project D4R7 – signed in 2016 Loan for Safety Diagnosis Vehicles railway project – to be signed Q1 2018 Possible further infrastructure (road, railways, water) projects Energy Efficiency PRSL residential buildings – public procurement ongoing (close Feb2018) Public buildings – preparing EPCs framework for Slovakia SMEs – under preparation Waste Management and renewable energy Public procurement to be launched Q1 2018 (waste processing plants, waste-to-energy facilities, etc.) SMEs Equity for seed SMEs – under preparation VC equity for growth stage SMEs – preparing for direct implementation FLPG – public procurement ongoing (close Jan2018) PRSL – public procurement ongoing (close Jan2018) Social Economy Public procurement to be launched in Q1 2018 (guarantee products for social enterprises, social housing construction cooperatives, municipal rental housing projects, self-help housing construction projects)

SZRF – JEREMIE Holding Fund in SK Total size: EUR 107m (increased to EUR 140m in 2016) Total absorption (by the end of the period 31.10.2016): EUR 107m Manager: EIF (2009 – 2015); SZRB Asset Management (2016 - ) Objective: Improving SMEs’ access to finance and stimulating their growth and expansion Supported Financial Instruments: First Loss Portfolio Guarantee (FLPG); Portfolio Risk Sharing Loan (PRSL); Equity (Venture Capital) Central Europe fund of funds – CEFoF Total allocation: EUR 10m (EUR 3,33m from MoF and EUR 6,67m from SZRF) CEFoF Funding Agreement between MoF and SZRB AM: 11.8.2017 CEFoF Management Agreement: 4.9.2017 The Slovak Government created the Slovak Investment Holding: a fund of funds for the implementation of the ESIF in the 2014-2020 programming period via Financial Instruments Various benefits of implementing ESIF via Financial Instruments instead of via grants exist; e.g. FIs are repayable and allow leveraging from the International Financial Institutions and qualified private investor money Following the government resolution, 3% of each Operational Programme will be allocated to Slovak Investment Holding which represents approximately 552 million (ESIF + National co-financing) to be used for financial instruments The manager of the SIH, SZRB Asset Management, is a 100% subsidiary of Slovak Guarantee and Development Bank (SZRB). SZRB is operating on a commercial basis and is fully owned by the Ministry of Finance SZRB AM will manage the fund of funds and propose the investment strategy which will then be approved by the Supervisory Board of the Slovak Investment Holding where all Managing Authorities of the respective Operational Programmes are represented

SZRF Financial Intermediaries FLPG (Guarantee Instrument) PRSL (Loan instrument) Venture Capital (Equity)

Investment plan for Europe – implementation in SK SZRB Asset Management operates as the local entry and advisory point for Investment Plan for Europe implementation in Slovakia SZRB Asset Management cooperates with the EIB, European Investment Advisory Hub (signed MoU in Feb 2016), European Investment Project Portal, Structural Reform Support Services (European Commission) Main activities: Construction of pipeline of investment projects and of capacity for investment advisory services at SZRB Asset Management – cooperation with EIAH and SRSS Analysing market potential for establishing smart cities investment platform Main objectives: Centralisation of investment advisory know-how in preparing/structuring investment projects Increased use of EFSI and/or ESIF financial instruments in Slovakia

Further investment opportunities in Slovakia SZRB Asset Management recongizes in relation to its core activities also other investment opportunities in Slovakia which could attract foreign investors, and is ready to prepare solutions for them SZRB Asset Management established its fully owned subsidiary Slovak Asset Management (SAM) to implement non-ESIF investments in Slovakia SAM applied for Licence of Asset Manager of Alternative Investment Funds from the National Bank of Slovakia After obtaining the Licence, SAM will be entitled to establish, and manage alternative investment funds in any country of the European Union

Chief Investment Officer Peter Dittrich Chief Investment Officer Peter.dittrich@szrbam.sk Any use of this material without specific permission of SZRB Asset Management is strictly prohibited.