LATVIAN GUARANTEE AGENCY We are working, to see more successful enterprises in Latvia... We are a reliable partner, where a lack of funding hampers implementation of business ideas...

Acquisition of public funding * Committed liabilities Public funding, MEUR Acquisition on August 30, 2013 Absorption on December, 2015 MEUR% % activity "Holding fund for the investment in guarantee, high-risk loans, and venture capital fund and other financial instruments" % % BALTCAP RISK CAPITAL % % IMPRIMATUR SEED AND START-UP CAPITAL % FUNDED RISK SHARING % FLYCAP, EXPANSION CAPITAL, ZGI CAPITAL3000 NEW MICROLOAN FUNDS activity "Guarantee for development of enterprise competitiveness" % sub-activity "Mezzanine investment loans for development of enterprise competitivness % %

Progress on spending Acquisition of Public Funding/Final recipients BALTCAP RISK CAPITAL 0.9 MEUR2.8 MEUR7 MEUR8 MEUR9.8 MEUR IMPRIMATUR SEED AND START-UP CAPITAL 0.2 MEUR0.7 MEUR2.1 MEUR2.5 MEUR3.3 MEUR FUNDED RISK SHARING 0.6 MEUR5.1 MEUR7.1 MEUR7.5 MEUR FLYCAP, EXPANSION CAPITAL, ZGI CAPITAL NEW MICROLOAN FUNDS activity "Guarantee for development of enterprise competitiveness" 43 MEUR81 MEUR105 MEUR110 MEUR120 MEUR sub-activity "Mezzanine investment loans for development of enterprise competitivness MEUR1.5 MEUR1.8 MEUR 334

Venture capital  Signed contracts with new risk capital funds on August 6, 2013 :  FLYCAP: focus on start-up companies with developed business model  EXPANSION CAPITAL: focus on commercial production beginners  ZGI CAPITAL: focus on seed and start-up capital investments  Success cases: IMPRIMATUR: Blue Bridge Technologies: Health IT: automating medical insurance claims processing, improving patient data security and decreasing administrative costs. Invested 700 TEUR in as early-stage startup capital. 5 new high- value jobs created in Latvia in computer science and international marketing. BALTCAP: Primekss: industrial concrete flooring company. Unique, patented technology that allows to create concrete that is tougher, stronger, crack-free and ecologically friendly. Turnover has doubled from 8 MEUR to 16 MEUR in 2012, and more than 100 jobs have been created in the process.  Management cost does not exceed 3% on a yearly average in the level of financial intermediaries and <1% in the level of LGA

Mezzanine loan programme  Attracted private funding on August, 2013: 3 MEUR  On September, 2013 in the decision-making process 2 projects: IT and catering, 1.3 MEUR, and 2 projects are in pipeline;  The main planned changes to the programme: a) exclusions from the restricted industries/ activities list; b) mezzanine loan may be subordinated in relation to a long-term loan granted by a credit institutions or by a private investor  Direct sales of mezzanine loans to enterprises and seminars to bank project managers  Planned management cost will not exceed 2% on a yearly average during programme implementation, on August, 2013: < 1%

Guarantee programme  Attracted private funding > 200 MEUR  Export turnover covered by export credit guarantees > 70 MEUR  Defaulted guarantees: 1.2% of issued guarantee amount on August, 2013  Management cost does not exceed 2% on a yearly average during programme implementation,  Planning to close acitvity “Guarantee for development of enterprise competitiveness” on December 31, 2013

Micro-lending funds Status:  State aid rules approved on June 18, 2013  Procurement documentation in development – the last phase: legal advice on agreement conditions  The procurement procedure is expected to start in October, 2013  Contracts with financial intermediaries are expected to sign in December, 2013  The total micro-lending fund amount:5 MEUR, for one financial intermediary: max 1 MEUR

- Cooperation with banks («gate keepers»), meetings with management on regular basis; - Distribution of informative material (infographics, video); - Regional seminar programme: meetings with entrepreneurs in regions, direct transition of experience from mezzanine beneficiaries to interested parties; - Cooperation with sector associations; - Cooperation with partners (venture funds, NGO, TechHub, Enixus Baltija, Commercialization Reactor), using them as channels of information distribution; - Press conference about new venture funds; - Newsletters, social networking (twitter, Linkedin, LGA web); - Open Days in LGA; - Direct cooperation with media (summary of programms so far, experience stories, etc.), regular news for media about programme beneficiaries. LGA publicity measures

Latvian Guarantee Agency, Ltd Zigfrīda Annas Meierovica bulvāris 14, Rīga, LV-1050, Latvija T F