1. Michelle Howell REIF Senior Manager Scottish Enterprise

2. Scottish Investment Bank International 2016 Low Carbon Heat and Water Conference and Showcase Michelle Howell Senior Investment Manager

3. Scottish Investment Bank was established in 2010 as an expansion of Scottish Enterprise’s investment team We support economic growth by increasing the supply of equity finance to Scottish businesses, including foreign direct investment, and helping more companies access finance via our Financial Readiness team. Our aim is to grow Scotland’s private sector funding market for early stage and expanding SMEs with growth and export potential to ensure they have access to growth capital when it is needed. Our investment funds are available to businesses throughout Scotland, including the Highlands and Islands Scottish Investment Bank is the investment arm of Scottish Enterprise

4. SIB Products & Services Specialist support to help businesses with growth and export potential identify the most appropriate sources of finance and develop fundable propositions. FINANCIAL READINESS Team of experienced portfolio managers who work alongside our co-investors and account managers to support management teams of investee companies deliver their growth ambitions. PORTFOLIO MANAGEMENT Available to seed, start-ups or companies planning expansion. We can invest between £10k and up to £1.5m cumulatively in deal sizes generally up to £10m. We co-invest with Accredited SCF Partners. SCOTTISH CO-INVESTMENT FUND III Available to seed, start-ups or companies planning expansion. We can invest between £10k and up to £2m in deal sizes generally up to £10m. We co-invest alongside a range of investors. SCOTTISH VENTURE FUND III REIF provides loans, equity and guarantees for projects with funding gaps. REIF will consider projects that support the delivery of energy from a renewable source RENEWABLE ENERGY INVESTMENT FUND This fund provides commercial loans for projects that will develop or expand the sorting, reuse/repair and reprocessing capacity for waste materials in Scotland SCOTTISH RECYCLING FUND Managed by Maven Capital Partners LLP, the fund provides mezzanine loans of between £250k - £5m to eligible established companies generating turnover. SE is a cornerstone investor. THE SCOTTISH LOAN FUND Managed by Epidarex Capital, this fund invests into innovative Scottish life science and health technology companies EPIDAREX CAPITAL Our products and services help entrepreneurial management teams to create globally competitive companies in Scotland

5. Helping companies get ready to fund raise Our Financial Readiness team works with companies to: Guide them through complexities of various finance options Identify most appropriate funding package Support them in securing finance Provide export finance advice and support Provide them access to relevant public sector support Get funding Get ready Get information Financial Readiness Support

6. Fund characteristics FundScottish Co-investment Fund III Scottish Venture Fund III Deal sizes£20k - £10m SE Investment£10k - £1.5m (cum)£10k - £2.0m Key FeaturesDeals are led by Accredited Partners with SIB investing up to 50% of the total funding package, subject to eligibility. Non partner fund - deals are led by a private sector investor, with SIB undertaking independent due diligence. Funding – Equity Funds

7. What is REIF? Launched in 2012 and funded by the Scottish Government Why REIF? To promote energy from renewable sources; and To drive further investment into key industry areas. Who delivers it? SE, on behalf of Scottish Government and HIE (‘Team Scotland’) REIF is a pan-Scotland fund Who can receive funding? Companies (any size) and non-profit community groups Funding – Renewable Energy Investment Fund

8. What kind of renewables are eligible? Marine – Wave & Tidal Community owned renewables District heating from a renewable source ‘Other’ (case by case) What forms of finance do we provide? Equity Debt (loans) No minimum or maximum – we gap fund alongside private sector Shared risk model REIF will not support early stage R&D projects or sub-scale prototype devices Funding - How does REIF support projects?

9. Established March 2011 Current fund capital value - £113m Public sector capital (includes ERDF & HIE) - £55m Investors – Lloyds, RBS, Santander, Clydesdale, Strathclyde Pension Fund, Aberdeen City Council Pension Fund Independent Fund Managers – Maven Capital Partners niche product targeted at growth and export companies mezzanine loans £250k - £5m+ SMEs annual turnover of £1m+ (lower on case-by-case basis) investment to date £41.2m (c. £52.6m committed) 22 investee companies Funding – Scottish Loan Fund

10. Portfolio Team Work closely with management teams, co-investors and SE & HIE colleagues Support development of growth companies agree and deliver strategy shape and enhance management and board composition appoint Non Executive Directors access to networks and contacts Secure wider SE support – AM, SDI, Innovation support Integral part of Account Teams – joined up/value add/team Scotland Seek to maximise economic and commercial returns SUPPORT

11. “Across Scottish Enterprise we enable companies to successfully innovate, commercialise, enter international markets and to connect with experienced investors that can add value to their business” In 2014/2015 we invested £66.5m in over 100 Scottish companies This investment was made alongside £99m private sector investment in our core funds & £64.5m alongside REIF Our investment activity generated £9.5m of income, which is recycled back into providing SE support services for companies We helped over 400 companies get ready to raise finance We now have a strong portfolio of 275 companies across a broad range of key growth sectors Last year we doubled our investment on the previous year and increased our portfolio of companies

12. Active portfolio management Achievements so far

13. Key Messages SIB is the investment arm of Scottish Enterprise with a remit to ensure growth-oriented SMEs in Scotland have access to growth capital Operates across a number of sectors A range of products including flexible equity funds to support early stage and expanding SMEs with growth and export potential Provide ongoing support for the development of growth companies

14. General enquiries 0845 687 8787 SIBadmin@scotent.co.uk Web: www.scottish- enterprise.com/sib Tweets at @scotent Michelle Howell Senior Investment Manager Scottish Investment Bank michelle.howell@scotent.co.uk 0141 228 2080 Scottish Enterprise Atrium Court, 50 Waterloo Street, Glasgow, G2 6HQ