ALTUM INVESTOR PRESENTATION April 2018 DISCLAIMER This presentation

ALTUM INVESTOR PRESENTATION April 2018

DISCLAIMER This presentation and any materials distributed or made available in connection herewith (collectively, the “presentation”) have been prepared solely for your use and benefit for information purposes only and are the sole responsibility of Akciju sabiedrība "Attīstības finanšu institūcija Altum" (the “Company”), and have not been verified, approved or endorsed by any lead manager, bookrunner, underwriter or adviser retained by the Company. This presentation do not contain all of the information that is material to an investor. By accessing, downloading, reading or otherwise making available to yourself any content of the presentation, in whole or in part, you agree to be bound by the following limitations and accept the terms and conditions as set out below. 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CONTENT: I. Business Overview II. Portfolio Overview and Funding, 12 M 2017 Source: Pixabay. com

KEY CREDIT STRENGHTS § Ownership by The Republic of Latvia rated A 3/A /A by Moody’s, S&P and Fitch respectively and clearly expressed support § Long term issuer credit rating Baa 1 assigned by Moody’s § Solid equity position (49. 3% of total assets*) § Strong liquidity and secured long term funding § Track record of improving operational efficiency § Prudent corporate governance and professional management team § Corporate and Social Responsibility agenda § Modern risk management system *Total capital and reserves/Total assets at 31 Dec 2017

I. BUSINESS OVERVIEW Source: Pixabay. com

GENERAL INFORMATION 100% state owned financial institution Provides access to finance in the areas prioritized by the government Implements the state policy in the national economy Shareholders of Development Finance Institution ALTUM Ministry of Finance 40% Ministry of Economics 30% Ministry of Agriculture 30%

HISTORY AND LEGAL BACKGROUND Latvian Guarantee Agency Rural Development Fund JSC Development Finance Institution Altum § Established by the decision of the Cabinet of Ministers § Special Law on the Single Development Institution § European Commission`s decision

MISSION We help Latvia grow VISION To be a partner and financial expert in economic development VALUES Team Excellence Responsibility Source: Pixabay. com

MID TERM TENDENCIES BUSINESS MODEL Loans 207. 6* MEUR Guarantees 182. 4* MEUR VC 51. 3* M Modest growth LOANS Total assets 451. 7* MEUR Number of outstanding contracts 14, 402* p ee St wth gro Long term profitability Extra credit risk covered by public funding – Risk coverage reserve and Portfolio loss reserve Guarantees issued by ALTUM have 250 MEUR back up guarantee from the Latvian state No dividend payments by law * 31 Dec 2017 GUARANTEES Modest growth VENTURE CAPITAL

BUSINESS OVERVIEW: CLIENT SEGMENTS § Portfolio increased by 18. 1 MEUR in 2017. § In 2017 total volumes are 123. 1 MEUR (56% guarantees, 42% loans and 2% venture capital investments). § The portfolio structures of the loan and guarantee financial instruments echo the state aid implementation priorities of the Latvian government. § During 2017 volume of guarantees had steep growth compared with 2016 (by 22%). § 4, 697 projects were supported, incl. : SMEs & Midcaps 751 (+11% vs 2016), Agriculture 717 ( 9%), Individuals 3, 219 (+9%), Financial intermediaries 10 ( 75%). § Financial intermediaries segment decreased due to the end of venture capital fund Investment period. Expected to increase in 2018 when recently signed Fund management agreeaments become effective § § Major segments by volume – SMEs & Midcaps and Agriculture. The fastest growing segment – SMEs & Midcaps, +9% in year 2017. * Gross value

CORPORATE GOVERNANCE The Development Finance Institution Law and other legislative acts CABINET OF MINISTERS SHAREHOLDERS’MEETING Internal audit unit COUNCIL Audit committee MANAGEMENT BOARD (5 board members)

DECISION MAKING BODIES Jēkabs Krieviņš Member of the Board State support programs and the Latvian Land Fund Inese Zīle Member of the Board Business growth, marketing and customer service Reinis Bērziņš Chairman of the Board Finances and administration Juris Vaskāns Member of the Board Venture capital financial instruments and Stressed assets workout Aleksandrs Bimbirulis Member of the Board Risk Management and Credit processes Credit committee (12 members) Stressed Assets management committee (12 members) BOARD Risk and Liquidity management committee (7 members) Information Systems (IT) management committee (6 members) Program management committee (8 members) Members of all committees are appointed by the Management Board

NEW PRODUCTS & EFFICIENCY § New products Operational efficiency FOCUS AREAS Funding New products: delegated guarantees; export credit guarantees to EU countries up to EUR 2 mln; Land Fund`s reverse rent. § Internal processes streamlined and more efficient: The guarantee maximum limit increased from the EUR 1. 5 mln to EUR 3 mln; The signed agreement on the counter guarantees of Innov. FIN Facility allows to issue guarantees to innovative projects at lower rates. § Strategic shift in funding sources to decrease administrative burden for the staff. leading to efficiency § Improve customer service Core business § Limitation of non-core business activities Sales of investment properties in 2017 2018. Installation of new IT infrastructure in 2018 will lead to a substantial decrease of IT costs.

II. PORTFOLIO OVERVIEW AND FUNDING, 12 M 2017 Source: Pixabay. com

IMPROVING OPERATIONAL EFFICIENCY § In 2017 the financial instruments portfolio has been augmented by 4. 3% with reduced management costs to 2. 5% (2016: 3. 0%) § Costs are expected to decline gradually In the coming years § IT and communications related costs will be substantially lower after IT infrastructure upgrade

WELL DIVERSIFIED PORTFOLIOS • Portfolios are diversified across economic sectors • Thus the institution is well positioned to withstand macrolevel risk events • The composition of both portfolios reflects Latvian government’s strategic priorities in implementing its growth strategy

31 Dec 2017 § Funding term structure corresponds to the portfolio term structure § The aim is to reduce the dependence on Structural Funds by replacing it with loans from international financial institutions and proceeds from bond issuance

EXCEPTIONALLY STRONG LIQUIDITY POSITION § High liquidity ratio – maintained over 350%* Liquidity portfolio MEUR [CATEGORY NAME]; [VALUE] § Diversified exposure § Current buffer – in accordance with the programme rules and agreements with the State Treasury, Altum has unused credit lines from the State Treasury to finance the support programmes (~55 MEUR) [CATEGORY NAME]; [VALUE] * Liquidity ratio: Due from other credit institutions and Treasury with maturity up to 1 month + Investment securities (available for sale)/ Liabilities with the contractual maturity dates up to 6 months + Financial commitments with the contractual maturity dates up to 6 months [CATEGORY NAME]; [VALUE]

Portfolio 51. 3 M EUR, 189 projects, 11 funds Expansion Capital Funds (5) 36. 6 MEUR, 76 projects (Additional 1 contracted Q 1 2018) Medium Venture Capital Funds (3) 10. 2 MEUR, 22 projects (Additional 2 contracted Q 1 2018) Seed Capital Funds (2) 4. 5 MEUR, 91 projects (Additional 4 contracted Q 1 2018) High Risk Low VENTURE CAPITAL: PROFESSIONAL SELECTION AND BALANCED RISKS Acceleration Funds (1) 0 MEUR, 0 projects § Investment decisions made by professional fund managers – publicly procured § Ticket size within diversified range up to 11% (Additional 2 contracted Q 1 2018) Business idea Business start up Early growth Expansion growth Stable growth

KEY FINANCIAL AND PERFOMANCE INDICATORS (1) Key Financial data Net income from interest, fees and commissions, TEUR 2017 2016 2015 11, 374 11, 024 16, 419 Profit for the period, TEUR 6, 945 2, 170 4, 924 Cost to income Ratio (CIR) 54. 7% 88. 4% 55. 8% 230 242 282 451, 686 443, 126 406, 918 35. 6% 35. 2% 37. 3% 222, 486 210, 094 199, 610 Total risk coverage: TEUR 65, 002 67, 705 41, 021 Risk coverage reserve 60, 060 64, 833 40, 662 Risk coverage reserve used for provisions 4, 753 4, 323 1, 276 Portfolio loss reserve within Reserves (specific reserve capital) 9, 695 7, 195 1, 635 507% 449% 352% Employees Total assets, TEUR Tangible Common Equity(TCE)/Tangible Managed Assets (TMA) Equity, TEUR Liquidity Ratio 180 days

KEY FINANCIAL AND PERFOMANCE INDICATORS (2) Financial instruments (gross value) 2017 2016 2015 Outstanding (TEUR) (by financial instrument) Loans 207, 585 217, 429 218, 562 Guarantees 182, 376 147, 175 131, 120 51, 310 58, 541 39, 929 441, 271 423, 145 389, 611 14, 402 11, 449 8, 901 Loans 51, 869 59, 465 52, 329 Guarantees 68, 615 56, 109 50, 065 2, 638 21, 356 18, 798 123, 122 136, 929 121, 192 4, 697 4, 461 2, 819 185% 162% 104% Venture capital funds Total Number of contracts Volumes granted (TEUR) (by financial instrument) Venture capital funds Total Number of contracts Leverage for raised private funding

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