1. 1 Finnvera plc and its’ ERDF-co-financed softloans and guarantees and their impact to business development in Finland Prague, 13.10.2005 Anne Voutilainen, Finnvera plc EUROPEAN UNION

2. 2 Contest of presentation  Finnvera plc in brief  How Finnvera plc operates  Finnvera plc´s organisation  Objectives of Finnvera’s ERDF-co-financing  Finnvera’s ERDF-co-financed schemes  Finnvera acts as an intermediary for the support programmes of the European Regional Development Fund (ERDF)  Some key figures concernig Finnvera’s ERDF-co-financed loans and guarantees granted in period 3.4.2001 – 31.8.2005  Some impact indicators concerning Finnvera´s ERDF-co-finaced loans and guarantees  Granted loans which include ERDF-co-financing 1.1. – 12.9.2005 EUROPEAN UNION

3. 3 Finnvera plc in brief  specialised financing company owned entirely by the Finnish state  share capital 196,6 million euro  balance sheet total 1 707 million euro  Finnvera plc's outstanding commitments 30.6.2005  credits and guarantees about 2,2 billion euro  export credit guarantees and special guarantees about 4,8 billion euro  27 100 clients  16 regional offices  409 employees  Finnvera acts as Finland’s official Export Credit Agency (ECA) Joensuu Vaasa Lappeenranta Pori Regional office Head and regional office Oulu Kuopio Rovaniemi Kajaani Seinäjoki Jyväskylä Mikkeli Tampere Lahti Turku Helsinki & Uusimaa EUROPEAN UNION

4. 4 How does Finnvera plc operate?  Finnvera plc provides services to supplement the Finnish financial market  Finnvera’s task is to promote the development of enterprises, regions and the exports of Finnish companies.  Finnvera carries out this task by improving the range and versatility of financing options available to enterprises through loans, guarantees and export credits.  Finnvera grants loans to enterprises and entrepreneurs, and issues guarantees and export credit guarantees to enterprises and financiers.  Finnvera participates in the financing of enterprise activities based on a profitable business idea when the risks associated with financing - often insufficient security - prevent the enterprise from obtaining financing on market terms. EUROPEAN UNION

5. 5  Finnvera’s ability to take risks in domestic financing is enhanced by the commitment given by the State of Finland to compensate for a certain share of Finnvera’s credit and guarantee losses. Finnvera transfers this support to its own clients by reducing the price payable for loans or guarantees accordingly.  In Finland, the company participates in regional venture capital investments through its subsidiary, Veraventure Ltd., by making investments in regional capital funds.  Through its special loans and guarantees, Finnvera also acts as an intermediary between the European Union's financing programmes and Finnish SMEs. EUROPEAN UNION

6. 6 Export Credit Guarantees Domestic Financing Services to Business 16 Regional Offices General Meeting Finnvera plc´s organisation Supervisory Board Board of Directors Managing Director Treasury Risk Management Legal Affairs Internal Audit Corporate Planning Development EUROPEAN UNION

7. 7 Objectives of Finnvera’s ERDF-co-financing  Diversification of financing instruments used in the ERDF-co- financing in Finland - reduction of direct subsidies  Intensification of the effects of the Objective 1 and 2 programmes on the development of SME’s. - new jobs - new enterpises - new investments - overall development of SME’s  Increase in risk-taking especially in the Objective 1 areas EUROPEAN UNION

8. 8 Finnvera´s ERDF-co-financed schemes  Micro-financing scheme - micro-enterprise loans - women entrepreneur loans  Entrepreneur loan scheme - entrepreneur loans  Growth financing scheme - investment and working capital loans and –guarantees The ERDF-co-financing is used for - interest subsidies (all schemes), provision subsidies (guarantees for investment and working capital loan, Objective 1area) and - compensation for credit losses (growth financing scheme) EUROPEAN UNION

9. 9 Finnvera acts as an intermediary for the support programmes of ERDF/Interest subsidies Investment and working capital loans (interest subsidies are paid in the first three years) national assisted area State of Finland ERDF Total Objective 1 category I1,4 %1,4 % 2,8 % category II1,1 %1,1 % 2,2 % Objective 2 category II1,3 %0,9 % 2,2 % category III0,7 %0,5 % 1,2 % Not national assisted areas0,7 %0,5 % 1,2 % Growth financing scheme isn’t used in the phasing-out areas EUROPEAN UNION

10. 10 Finnvera acts as an intermediary for the support programmes of ERDF/provision subsidy and credit loss subsidy Guarantee for investment and working capital loans/4.2.2005 (provision subsidy is paid in the first five years, maxium loan period usually eight years) Objective areaState of Finland ERDF Total Objective 1 1 % 1 % 2 % Credit losses for investment and working capital loans Objective areaState of Finland’s ERDF’s Finnvera plc’s share share share Objective 1 40 % 40 % 20 % Objective 2 40 % 27 % 33 % EUROPEAN UNION

11. 11 Micro-financing and entrepreneur loan schemes - Interest subsidies are paid in the first - eight years/entrepreneur loans, - five years/micro- and womenloans - The total (State of Finland and ERDF) paid interest subsidy is 3,5 % - The objective areas are Objective 1, Objective 2 and phasing-out areas Finnvera intermediates the above-mentioned interest subsidies to the enterprises by granting the loans at decreased interest rates in which the interest subsidies are fully taken into account Finnvera acts as an intermediary for the support programmes of ERDF/Interest subsidies EUROPEAN UNION

12. 12 Some key figures concerning Finnvera’s ERDF-co- financed loans and guarantees granted in period 3.4.2001 – 31.8.2005 Total financing granted and the shares of ERDF- and State financing bound to interest subsidies and to compensation for credit losses (million €) Financing Financing bound ERDF State Total Investment and working capital loans 323 20 21 41 Investment and working capital guarantee 6 0,2 0,2 0,4 Micro-loans 47 4 5 9 Women entrepreneur loans 32 2 3 5 Entrepreneur loans 38 6 8 14 Total 446 34,2 38,2 69,4 EUROPEAN UNION

13. 13 Some impact indicators concerning Finnvera’s ERDF-co-financed loans and guarantees The figures concern both the Objective 1 and 2 programmes (period 03.04.2001 – 31.8.2005)  New enterprises (total) 3 294  New jobs (total)11 188 -New jobs for women 4 076  Safeguarded jobs (total) 5 535 -Safeguarded jobs for women 1 294  Jobs of project time (total) 1 147 -Jobs of projet time for women 56 EUROPEAN UNION

14. 14 EUROPEAN UNION Granted loans which include ERDF-co-financing 1.1. – 12.9.2005

15. 15 Thank you for your attention! anne.voutilainen@finnvera.fi www.finnvera.fi EUROPEAN UNION