1. EU subsidies 2014 – 2020 Be prepared with K&H! EU Office Marianna Tamás

2. EU 2020 priorities EU targetHungary target Employment rate (age 20-64) 75%60,7%  70% R&D expenses (% GDP) 3%1,2%  1,8% Energy sustainabity 20%8,79%  14,65% Third level education 40%28,1%  30,3% Early school leavers 10%11%  10% Reduction of poverty (-) 20M(-) 5% 2 Financial Framework 2014-2020 1% of the EU GNI o EU level Data in M EUR

3. Funding opportunities 2014-2020 3 SME development Modularity Job-creation Social responsibility Public development SME/Corp. As supplier Green energies Renewable energies Energy rationalization 11 Sept 2014 - Partnership Agreement 26 bn EUR ( 3,6% GNI of Hungary) Maximum funding achiveable in regionsSmall ent.Medium ent.Corp. Central Hungary (Budapest, Pest)20%10%0% Budapest, Szentendre, Dunakeszi20%10%0% Piliscsaba, Pilisjászfalu, Pilisvörösvár, Solymár40%30%20% Prior Municipalities In CH55%45%35% Central Transdanubia ( Veszprém, Komárom E., Fejér)55%45%35% Western Transdanubia ( Győr-M., Vas, Zala)45%35%25% Northern Hungary(Nógrád,Heves, Borsod AZ) Northern Great Plain( Jász N-Sz., Hajdú-B., Szabolcs-Sz.), Southern Great Plain (Bács-K., Csongrád, Békés) 70%60%50% Focus points Operational Programmes (OP) 60% for economic development NRF vs. RF Rates thresholds

4. According to EU recommendation (2003/361) Requirements of SME status CategoryEmployeesTurnoverOR Balance sheet total Medium ent. < 250≤ EUR 50 m≤ EUR 43 m Small ent.< 50≤ EUR 10 m Micro ent.< 10≤ EUR 2 m

5. Subsidies for companies 5 GINOP (Operational Program for Economic Development and Innovation) Other priorities for SME/Corp. PriorityNameAllocation of fund. KEHOP 5 Energy efficiency 26,28%311,38 TOP 1 Regional economy development 39,02%468,37 EFOP 1 Cooperative society 32,32%303,35 EFOP 3 Knowledge-sharing instruments 29,96%281,17 Összesen 1 364,27 Bn HUF PriorityAllocation of fund. GINOP 1SME17,55%495,22 GINOP 4Energy2,50%70,62 GINOP 5Education and training23,30%657,32 GINOP 7Financial instruments26,11%736,55 GINOP 2Innovation18,73%528,29 GINOP 3ICT6,17%174,19 GINOP 6Tourism5,63%158,9 Sum.100,00%2 821,09

6. 6 Concentrated OP’s Modular tender system Longer/detailed calls, shorter application forms New rules of procedure, National Development Framework (2015-2019, 2019-2023), Annual Development Framework Moratorium ( T + 30 days) „Head-heavy" aid funding instead of proportional disbursements Revolving pre-financing available Aids disbursed free of any guarantee Leasing is still acceptable as eligible cost Flexible transfer between priority subgroups - without Brussels approval Complex project ideas will be funded Preparation costs – soft costs reduced ( max. 12%) Faster tender administration Well predictable tender system Better transparency, equality of opportunity Easier funding possibilities, better liquidity and bank credit availability Preparation takes longer time, so let’s begin it! Technical actualities CHANGES CONSEQUENCES

7. 2015 Timetable of OP for Economic Dev.

8. Forthcoming calls (April/May)

9. 1. priority – Improving competitiveness of SMEs

10. EU Office How can K&H Bank help you to involve EU funds? 10

11. 11 Preparation and compilation of applications Preparation of further professional materials - business plans, feasibility studies, CBA’s Professional quality check of completed applications Application quality insurance additional bank financing assistance related to the involvement of project Working relation with managing authorities Our services for the prepartion phase Free services Newsletter (K&H támogatási értesítő) → registration: eu_palyazat@kh.hu Exploiting tailor-made funding opportunities Project consultation Eligibility enquiry

12. 12 Technical assistance to support singing grant agreements Preparation of payment requests Compilation of project progress and maintenance reports Quality assurance Preparation for site inspections, personal participation if required Stand-by consultancy Project-managment services

13. 13 Our achivements HUF 10 bn subsidy disbursed 5 000 successful project-eligilibity enquiry Success ratio over 90% Active participation in more than 300 projects Comprehensive experiences Technology development Infrastructure development IT, corporate governance system Energetics Environmental protection Transport development R&D Agriculture Tourism Job creation, job retention HUF 29 bn investment realized Wide range of experiences in all segments SME Corporate Municipalities

14. Choosing K&H is a SMART decision Stable multinational background Many services for free „One stop shop” - system In close cooperation with your dedicated contact person Complex financing solutions 14

15. 15 K&H Bank EU Office adress: 1095 Budapest, Lechner Ödön fasor 9. tel: (06 1) 461 4460, -61, -62 e-mail: eu_palyazat@kh.hu Thank you for your attention! Contacts