1. Croatian Agency for SMEs, Innovations and Investments DARKO LIOVIĆ President of the Board of Directors

2. WHO ARE WE? HAMAG-BICRO - Croatian Agency for SMEs, Innovations and Investments independent institution under the supervision of the Ministry of Entrepreneurship and Crafts established by the Government of the Republic of Croatia in 1994 with the purpose of enhancing SME’s development, catalyzing the innovation processes and promoting investment activities CROATIAN AGENCY FOR SMEs, INNOVATIONS AND INVESTMENTS www.hamagbicro.hr 2

3. WHAT DO WE DO ? 3 Our main activities: issuing guarantees for bank loans to SMEs issuing micro loans to start-ups grant schemes implementation promoting investments catalyzing innovation processes We aim to: provide active support to development of SMEs in Croatia facilitate creation of favorable environment for entrepreneurship and investment motivate private and public sector to raise investment levels in R&D support innovation and technology-based businesses create a positive international image of Croatia CROATIAN AGENCY FOR SMEs, INNOVATIONS AND INVESTMENTS www.hamagbicro.hr

4. GUARANTEES CROATIAN AGENCY FOR SMEs, INNOVATIONS AND INVESTMENTS www.hamagbicro.hr 4 Guarantees are provided to SMEs in compliance with the SME Development Promotion Act. Guarantees issued for loans approved by credit institutions and other legal entities approving loans to SMEs. Guarantees can be issued for loans from EU financial institutions. First call guarantees for SME loans For start-ups: Letters of intent EIF counter-guarantees

5. 3 GUARANTEE MODELS CROATIAN AGENCY FOR SMEs, INNOVATIONS AND INVESTMENTS www.hamagbicro.hr 5 SMEs operating up to 24 months guarantee up to 80% of loan for all program types EU START-UP SMEs operating more than 24 months guarantee up to 50% of loan for all program types and up to 70% for Performance Guarantees GROWTH issued to SMEs investing in agriculture and fishing increase the productivity of agricultural production AGRICULTURE

6. GUARANTEE BENEFICIARIES 6 AQUAPARK ISTRALANDIA o guarantee issued in the amount of HRK 7,000,000 (ca. EUR 920,000) o first Croatian aqua park opened last year in Istria, covers 8 hectares of land and provides entertainment, leisure and relaxation on more than 5,000 square meters of water surface o has the biggest swimming pool with artificial waves on the Mediterranean won the PARKSMANIA AWARD for entrepreneurial project of the year

7. GUARANTEE BENEFICIARIES 7 RIMAC AUTOMOBILI Ltd. o guarantee issued in the amount of HRK 2,627,483 (ca. EUR 345,000) o Concept One – electrical car with power of 1,088 HP, torque moment of 3,800 Nm and maximum speed of 305 km/h o Greyp Bike – electric bike started by a fingerprint, reaches the speed of 60 km/h o Batteries production

8. GRANTS FOR COMPETITIVENESS ENHANCING Direct, non-refundable financial contributions to SMEs in a form of grants under the Program Entrepreneurial Impulse 2015 for entrepreneurship and crafts Grants are available for projects in: manufacturing industry service industry environmental protection IT sector CROATIAN AGENCY FOR SMEs, INNOVATIONS AND INVESTMENTS www.hamagbicro.hr 8

9. GRANTS FOR COMPETITIVENESS ENHANCING o expected number of grants: 1,300 o payment of 80% amount of the approved grant is paid upon the contract conclusion o max. grant amount: state budget: HRK 400,000 (ca. EUR 52,512) EU funds: HRK 15,000,000 (ca. EUR 1,969,215) o HRK 4.37 billion, of which HRK 3.93 billion are direct grants to SMEs and crafts HRVATSKA AGENCIJA ZA MALO GOSPODARSTVO, INOVACIJE I INVESTICIJE www.hamagbicro.hr 9

10. GRANT BENEFICIARIES 10 SLIKOPLAT Ltd. o received the grant of HRK 497,175 (ca EUR 65,270) for innovation in entrepreneurship o PhotoMath became the most popular application in American AppStore o projects functions on the principle of equations via smart phone o 100,000 active users o more than million downloaded applications

11. GRANT BENEFICIARIES 11 SUSTAV JAVNIH BICIKALA Ltd. o received the grant of HRK 235,000 (ca. EUR 30,850) as a micro company o provision of bike rental services in Zagreb and Šibenik o start-up entrepreneurs o gained HRK 500,000 income in the first business year

12. GRANTS FOR FOREIGN FAIRS Co-financing of participation costs at foreign fairs: o CeBIT Hannover (April 2015) o INTEROP Las Vegas (May 2015) o INVESTORS MEET INNOVATIONS Bloomberg, London CROATIAN AGENCY FOR SMEs, INNOVATIONS AND INVESTMENTS www.hamagbicro.hr 12

13. GRANT BENEFICIARIES 13 VISIOBIKE j.d.o.o. o won the grant for the program INVESTORS MEET INNOVATIONS Bloomberg in London this year o received a micro loan in the amount of HRK 120,000 (ca. EUR 15,750) o electric bike with carbon fiber frame that is integrated with a smart phone o one of 50 most exciting start-ups of Europe according to the selection of Tech.eu web-portal

14. GRANTS FOR EQUITY MATCH Promotion of investment in equity capital of innovative SMEs o beneficiaries: innovative SMEs whose equity capital is increased by the funds invested by eligible investors for the purpose of further development and/or commercialization of an innovative product or service o eligible investors: business angels, unions of business angels, corporative investors, venture capital funds and other natural persons o Beneficiary, Investor and HAMAG-BICRO sign a tripartite Financing Contract (hereinafter: Contract) that regulates the mutual rights and obligations o grant amount: up to HRK 200,000 (de minimis aid) o total available funds: HRK 7 million 14 CROATIAN AGENCY FOR SMEs, INNOVATIONS AND INVESTMENTS www.hamagbicro.hr

15. GRANTS FOR INNOVATIONS 1. PoC - Proof of Concept o provision of innovative SMEs and scientific institutions to have their innovations and associated risks assessed o financing: grant up to HRK 350,000, 70-90% participation in costs 2. RAZUM – development program for knowledge-based SMEs o financing: conditional loan – max. HRK 9 million o micro and small companies – up to 70% total eligible costs o medium companies – up to 50% total eligible costs 3. IRCRO o research and development program aiming at encouraging SMEs to set up their R&D activities and cooperate with scientific institutions o financing: max HRK 900,000 o max. 50% portion in total justified costs 15 CROATIAN AGENCY FOR SMEs, INNOVATIONS AND INVESTMENTS www.hamagbicro.hr

16. SUPPORTED INNOVATION PROJECTS Number of pre- applications Number of applications Requested amount (in € million) Number of contracted projects Contracted value (in € million) Total project value (in € million) POC 1-5 (2010-2014) 1,061789 9216155 TEST (2007-2012) 13238 263166 RAZUM (2007-2013) 16352 42241522 IRCRO (2008-2013) 6357 52425 EUREKA (2010-2012) -32 -101- TEHCRO (2007-2011) 13 148921 TOTAL1,070745 1023003960 16 CROATIAN AGENCY FOR SMEs, INNOVATIONS AND INVESTMENTS www.hamagbicro.hr

17. GRANT BENEFICIARIES 17 PET MINUTA Ltd. o project co-financing via the program RAZUM in the amount of HRK 1,700,000 (ca. EUR 223,000) o Shoutem - self-service platform for fast and easy creation of smart phones and tablets applications o 65 employees o offices in New York and Zagreb, development is still in Croatia o 90% revenues in export o 25 thousand users

18. GRANT BENEFICIARIES 18 MOBILNA INFORMATIKA Ltd. o project co-financing via the program IRCRO in the amount of HRK 900,000 (ca. EUR 118,000) o Rapsly is a sales tool that works in real time and coordinates the sale of its agents and provides realistic information to its users o Users: L'Oreal, Lavazza, Keune, Haircosmetics, Jaegermeister o Boston, USD 1.25 million investment

19. INVESTING IN EQUITY CAPITAL 1.CROATIAN PRE-SEED FUND o invests in SMEs that are in early phase of operation transition from the end of product or service development phase to commercialization with a high growth potential on international o provides necessary financing (de minimis aid) of start-ups that precedes later investments by regional or domestic venture capital funds o EUR 2.5 million capital (planned) 19 CROATIAN AGENCY FOR SMEs, INNOVATIONS AND INVESTMENTS www.hamagbicro.hr

20. INVESTING IN EQUITY CAPITAL 2. VENTURE CAPITAL FUND – in cooperation with the World Bank o EUR 20 million, of which no less than 40% will be invested by private investors o funds will be invested in equity capital of innovative SMEs for specific time o innovative and high-tech companies will have easier access to finances 3. REGIONAL VENTURE CAPITAL FUND o joint initiative of the European Investment Fund, European Commission and the European Bank for Reconstruction and Development o fund’s value: EUR 40 million o fund invests in equity capital of innovative SMEs in South East Europe o investment per SME: up to EUR 1.7 million 20 CROATIAN AGENCY FOR SMEs, INNOVATIONS AND INVESTMENTS www.hamagbicro.hr

21. Support to investors and internationalization o Act on Investment Promotion and Development of Investment Climate (2012, amendments 2013) Minimum required investment (minimum 25 % of investment costs) 1. Micro companies - EUR 50,000 and 3 new jobs 2. Small and medium enterprises - EUR 150,000 and 5 new jobs Criteria for defining SMEs: CROATIAN AGENCY FOR SMEs, INNOVATIONS AND INVESTMENTS www.hamagbicro.hr 21 Enterprise Staff countSalesTotal assets Micro≤ 9≤ €2 mil Small10 - 49≤ €10 mil Medium50 - 249≤ €50 mil≤ €43 mil

22. Support to investors and internationalization o Activities that benefit from financial incentives: Development and innovation activities - improvement and modernization of products, series of products, production processes and production technologies Supporting business activities - client relationship centers, logistic and distribution centers, centers for developing information technology and software, centers for outsourced activities High added value services - creative services, tourism, together with management, consultancy and education services CROATIAN AGENCY FOR SMEs, INNOVATIONS AND INVESTMENTS www.hamagbicro.hr 22

23. Support to investors and internationalization o Types of financial incentives: 1) Tax incentives - decrease of corporate income tax rate, depending on the amount of the investment and the number of new jobs created CROATIAN AGENCY FOR SMEs, INNOVATIONS AND INVESTMENTS www.hamagbicro.hr 23 Investment amount Number of new jobs created Corporate income tax rate Number of years ≥ 50.000 € *≥ 310%5 0.15 – 1 million € ≥ 510%10 1 – 3 million € ≥ 105%10 > 3 million €≥ 150%15

24. Support to investors and internationalization o Types of financial incentives: 2) Non-refundable aid for eligible training costs – depending on the size of the enterprise and the type of the training CROATIAN AGENCY FOR SMEs, INNOVATIONS AND INVESTMENTS www.hamagbicro.hr 24 Enterprise category Aid amount (as a percentage of the eligible training costs) Specific training General training Large25%60% Medium35%70% Micro and small45%80%

25. Support to investors and internationalization o Types of financial incentives: 3) Additional non-refundable aid for eligible costs of new jobs created in specific business activities - depending on the type of the business activity non-refundable 4) Non-refundable aid for the purchase of high-tech equipment/machinery for development and innovation activities - up to 20% of eligible costs (max. 0,5 million €) 5) Non-refundable aid for capital investments above 5 millions € and above 50 new jobs created - depending on the unemployment rate in the county in which investment project is located 6) Non-refundable aid for new jobs created in labour intensive investment projects - depending on the number of new jobs created CROATIAN AGENCY FOR SMEs, INNOVATIONS AND INVESTMENTS www.hamagbicro.hr 25

26. Thank you for your attention! 26 Croatian Agency for SMEs, Innovations and Investments Croatian Agency for SMEs, Innovations and Investments www.hamagbicro.hr www.hamagbicro.hr