Financing of cluster projects Conference & Workshop „Maritime Clusters in Landlocked Countries“ Prague, 27 th April 2009 Petra Klůnová, European Competence Center

2 Sources of cluster financing  Proportions of 3 basic resources vary according to external and internal factors (e.g. region, maturity of the cluster, type of initiative etc.)  In a very early stage (Czech Republic, other CEE countries), public financing (EU, state, region) is a key factor to boost cluster development  Subsidy element could be crucial for private/banking sector to be willing to provide additional external financing

3 Bank financing  Financial products have to be adjusted to individual client needs  Most frequent bank financing of clusters in the Czech Republic is the financing of EU-funded projects (pre-financing & co-financing)  Credit financing has to be structured according to approved EUF project conditions  Pre-financing: short- to mid-term financing:  Bridging the time gap between realization of the project and EU subsidy payment  Risk assessment is identical as in cases of classical financing  Payment risk – covered partly by subsidy  Performance risk – determined by fulfillment of subsidy conditions  Bank analyses client’s rating as well as the project quality  Approved subsidy doesn’t automatically mean that also credit will be provided  Co-financing: mid- to long-term project financing  Identical conditions as above  More strict evaluation depending on the time-factor  The resource of repayment is not the subsidy –> primary resource is the future cash flow  Involvement of own resources is always required !

4 What will the bank ask from the cluster?  Project/business plan  Accounting statements  Extract from the commercial register  Description of relationships and connections  Financial plan  Description of external resources needs  Quality and meaningfulness of the project  Credit rating and credibility of the client (rating can be actively improved in cooperation with the bank)  Communication with the financial institution since the early beginning  Market position and competitiveness of the sector/cluster, development  Management, accounting and other „soft“ factors  Members base and structure of the cluster Key success factors

5 What does UniCredit Bank offer to clusters?  Information support  Subsidy audit  Expert support in preparation of projects and applications  Cash-flow modelling and project financing  Recommendations on project management and monitoring  Elaboration of project applications for subsidy programmes  International know-how and networking Contact the financial institution before you start the project preparation

6 Expertise and experience of UniCredit Bank  High quality solutions for different types of clients and segments  Intensive coverage of the CEE region and of the entire Europe and close cooperation between the individual banks with regard to special products for international clients  No.1 bank for international investors in the Czech Republic  Exclusive distributor of EU funds on behalf of the Ministry of Finance until 2010: total amount of funds paid to subsidy receivers from EU funds reached almost CZK 50bn by the end of 2008  Dedicated European Competence Centre for EU funds advisory:  Consulting services (management, realisation, monitoring, etc.): hundreds of clients advised each year => tens of projects realized  Cluster know-how within the team – experience with the cluster concept implementation and EU funds based financing  Experience with regional „cluster clients“ servicing (incl. cluster members)  International network – CEE expert centres providing high-quality services in the domain of grants, subsidies and project management.

7 Countries where the group operates via local banks controlled by the group or with a significant equity interest Country where the group operates via its own branches, representative offices, small bank subsidiaries or investment centers (Pioneer) Countries where the European Competence Centers are established UniCredit Group: an extensive experience from international cooperation within the ECC network thanks to the intensive communication between European Competence Centres in all countries.

8 UniCredit is the first truly European bank… Source: internal data as to 3Q Data as to November 2008  Global thinking with multi-local approach  Creation of long-term sustainable values  Complementing the best practice methods from the entire group within each of its parts  Development of the best from the local cultures with the support of the proven and established brands  Banking activities in 22 countries  40M clients  Over 10,280 branches  employees  Awards 2009: - Best Bank for Payments & Collections - Best Trade Finance Provider in CEE  Among 20 largest world banks in terms of capitalisation 1

9 Contact details Petra Klůnová, senior expert European Competence Center UniCredit Bank Czech Republic, a.s. Naměstí Republiky 3a Praha