Finance Yorkshire Welcome

Finance Yorkshire John Watson - Director

Finance Yorkshire Why are we here this morning? Strengthening relationships with stakeholders, partners, intermediaries and clients Demonstrating how we are working in partnership with our LEP to support business growth Looking to the future Dialogue and questions

Finance Yorkshire Agenda John Watson, Director, Finance Yorkshire Alex McWhirter, Chief Executive, Finance Yorkshire Tim Frenneaux, Local Enterprise Partnership Paul Johnson, Smartgate Solutions - Seedcorn Investee Company Tom Sharp, The Beautiful Meme - Business Loans Investee Company Martin Gernon, Centre Stage Uniforms - Equity Linked Finance Investee Company Questions & Answers

Finance Yorkshire Alex McWhirter – Chief Executive

Finance Yorkshire What we are… £90m Venture Capital and Loan Fund Finance sourced from: £30m European Regional Development Fund £15m UK Government £45m European Investment Bank

Finance Yorkshire Our business approach… To fully invest the £90 million fund through helping SME’s constrained by finance to grow To create a sustainable fund To be recognised and respected as a key participant in the SME business and professional sectors To stimulate demand for finance in our key market segments To realise good returns for investors and value for money

Finance Yorkshire Our investment performance so far investments totalling over £66 million On track to meet economic targets; jobs created & safeguarded; increase in turnover; business starts and private sector leverage On track to achieve full investment by December 2014

Finance Yorkshire Investment Profile

Finance Yorkshire Investment Profile

Finance Yorkshire Investment impact... Created or safeguarded 6608 jobs Over £140 million Private Sector Leverage, resulting in £2.12 levered for every £1 invested Generated £84m in increased turnover Legacy fund to be invested in region’s businesses in line with original objectives - to be utilised after 2019

Finance Yorkshire Investment performance by location... LocationsAmount Invested (000)Investments (%) South Yorkshire£ 27,93442% North Yorkshire £ 10,12215% The Humber £ 4,0756% West Yorkshire £ 23,75436% Yorkshire & Humber Total £ 65,885100%

Finance Yorkshire Investment performance by location... Locations Amount Invested (£000) Investments (%) Amount Invested (£000) Investments (%) Amount Invested (£000) Investments (%) SeedcornBusiness LoansEquity South Yorkshire £ 6,92058% £ 9,82439% £ 11,19139% North Yorkshire £ 1,0709% £ 3,44714% £ 5,60520% The Humber £ 4504% £ 2,1759% £ 1,4505% West Yorkshire £ 3,56430% £ 10,03439% £ 10,15636% Yorkshire & Humber Total £ 12,004100% £ 25,480100% £ 28,402100%

Finance Yorkshire Investment performance by sector... Sector Analysis – All Funds Sector Application Process (%) Investments (%) Business Services13%17% Engineering / Industrial products / Materials25%27% Financial Services2% Healthcare / Pharma / Bioscience12%5% ICT / Software / Telecoms / Media19%12% Leisure / Hospitality1%2% Renewables / Energy / Cleantech6%7% Consumer / Food & Drink7%10% Other16%18%

Finance Yorkshire Investment criteria… A business with growth potential A new start or growing business A business unable to source its full funding requirement from the commercial market SME’s paying business rates in Yorkshire and the Humber or relocating to the region

Finance Yorkshire Three portfolios Seedcorn Finance Up to £780k Business Loans £15k - £250k Equity Linked Finance £100k - £2m

Finance Yorkshire Seedcorn Finance Start up or early stage innovative business during the fund’s early period, but now focussed on more mature innovate businesses that are self-sustainable with our investment Based on strong and unique technology, know-how or content that will usually be protectable Have potential for rapid growth and multiple returns of the original investment Based in or have significant activity in Yorkshire and Humber

Finance Yorkshire Seedcorn Finance Where investment made a difference  Carlton Manufacturing - Moved to larger premises and radically changed its manufacturing process following Finance Yorkshire investment  Xeros – Finance Yorkshire invested a total of £1.45 million over three funding rounds. Market capitalisation of £80m when admitted to AIM in March 2014  Frillo – A visionary new innovative one stop shop for business supplies with great growth opportunities

Finance Yorkshire Business Loans Fixed rate loans typically between £15,000 - £250,000 as syndicated or complete financial packages for businesses Financial packaging with other forms of debt finance including the banks Range of investments include; Working Capital, Capital Expenditure, Investment in Premises and development capital

Finance Yorkshire Business Loans Where investment made a difference  Green Peas Solutions - Business Loan enabled company to invest in research and development and expand its innovative packaging range.  William Beckett Plastics – Business Loan enabled the company to do a comprehensive refurbishment programme of three machines that mould its range of packaging.  Broder Metals – Business Loan to assist with a move to larger premises and to enable them to refit and refurbish the premises to their requirements

Finance Yorkshire Equity Linked Finance Some start ups, largely growth, development capital or expansion Types of investment packages include:  Loans with Profit Participation - for established businesses generating turnover of over £5m  Mix of Loan and Equity - for younger businesses with turnover of less than £5m  Equity only Investment - for early stage businesses with plans for rapid growth

Finance Yorkshire Equity Linked Finance Where investment made a difference  MTP Innovations - Using the £400k investment to expand its product range and customer base  Noel Village – Using the £750k investment to invest in new heat treatment  Magnomatics – Using the £1.1m (part of £2.5m package) to develop products, create new jobs and expand its global customer base.

Finance Yorkshire has: Completed 536 investments Invested a total of £65.8m Seedcorn Finance – 62 investments totalling £12.0m Business Loans – 406 investments totalling £25.4m Equity Linked Finance – 68 investments totalling £28.4m Finance Yorkshire Portfolio performance to date..

Finance Yorkshire Our Investment approach Working alongside the commercial market; Maintaining and developing relationships with financial intermediaries to promote awareness and dealflow Market making effect, making deals happen by spreading the risk with other investors and lenders Co-investing with other lenders and funds

Finance Yorkshire Tim Frenneaux York, North Yorkshire & East Riding Local Enterprise Partnership

Finance Yorkshire Seedcorn Fund Paul Johnson Smartgate Solutio ns

Finance Yorkshire Business Loans Tom Sharp The Beautiful Meme

Finance Yorkshire Equity Linked Finance Martin Gernon Centre Stage Uniforms

Investee Business

Finance Yorkshire Future work… Work collaboratively with the York, North Yorkshire & East Riding Local Enterprise Partnership and Local Authorities Develop the Finance Yorkshire brand and a recognised provider of growth finance to SMEs

Finance Yorkshire Making an application Call us to make sure it’s eligible or make enquiry via website yorkshire.comwww.finance- yorkshire.com An Investment Manager will contact you to discuss. Complete Application Form & the supporting information when advised by the Investment Manager.

Finance Yorkshire Q & A Finance Yorkshire Ltd is a company limited by guarantee (Registered No ). Finance Yorkshire Ltd ( ) comprises three sub funds, Finance Yorkshire Equity Fund, which is managed by Viking Fund Managers Limited, Finance Yorkshire Small Loans Fund, which is managed by EV Business Loans Limited and Finance Yorkshire Seedcorn Fund, which is managed by Enterprise Ventures Limited. Each of these Fund Managers is authorised and regulated by the Financial Conduct Authority.