February 1st 2011, Milan

Richard Pelly

Chief Executive

PerMicro Launch Event

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EIF at a Glance

Dual Objective of Meeting EU Policy Goals & Generating a Satisfactory Return on Equity

EU specialised institution for SMEs, risk financingVenture Capital and Mezzanine (fund of funds)Structuring and Guaranteeing portfolios of SME and microfinance loans/leases

Authorised Capital € 3bn EIB: 61%EU: 29 %Fin. institutions: 9 %To be issued: 1%

Geographic Focus /IntermediariesEU 27, EFTA, Candidate CountriesDistributing through Banks and Funds

AAA rated

Staffing, Culture and ValuesStaffing, Culture and Values

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Microfinance in Europe

Micro-enterprises make up 90% of businesses in Europe and 99% of yearly enterprise creation – 33% launched by the unemployed

Important growth generating market segment with social and financial impacts

BUT

Market is fragmented and underdeveloped (particularly in Western Europe)

Large variety of MFIs (small non-profit organisations or governments-owned development agencies, large commercial banks)

Microfinance often characterised by subsidised services and not self-sustainable

Efficient Support of the European Microfinance Sector Important for Entrepreneurship and Job

Creation

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EIF as Catalyst of Microfinance within the EU

Microfinance as an emerging strategic business line

Expertise and track record (EPPA, JASMINE, RCM, JEREMIE)

Financing capacity

Dedicated resources

Geographic reach across EU-27

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EIF Microfinance Operating Model

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Microfinance: EIF’s Activities since 2000

EIF manages various mandates designed to encourage microfinance institutions to increase financial availability to micro-entrepreneurs and micro-entreprises

Through these mandates, EIF has already invested in microfinance

Guarantees transactions signed under the EU MAP (2001-2006) and CIP (2007-2013) programmes for a total commitment of € 636m

Participation in securitisation transactions for a total commitment of € 120m

JASMINE Technical Assistance for € 6m to support microfinance providers: 15 institutions selected and supported (including PerMicro)

Broad Range of Microfinance Activities

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The Progress Microfinance Initiative: “Umbrella” for Existing Microfinance Initiatives

■ Initiative launched in 2010 to promote microfinance in the EU-27

■ EUR 200m funded by EC (DG EMPL) budget and EIB - managed by EIF

■ Key objectives: increase availability of finance for enterprise creation for the benefit of micro-entrepreneurs, the unemployed and groups with limited access to the traditional banking system

■ Key aspects: rapid market impact, leverage effect, EU-wide promotion, social inclusion/job creation

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Microfinance Sector in Italy

95 % of SMEs in Italy are micro-enterprises

Market fragmented with some initiatives from public and private sectors but no cohesiveness; focus mainly on Southern Italy so far

Microcredit requirements differ from region to region

82 % of microfinance institutions are not-for-profit (cooperatives micro-lenders, NGOs)

The beneficiaries are start-ups and micro-companies of less than five employees, as well as women and immigrants. Only 27% of the credits granted are to women and 21% to immigrant populations

Evidence that the microfinance sector in Italy is nevertheless in a phase of steady development and emergence of dynamic institutions aiming for strong growth and real sustainability

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PerMicro’s Model

■ Targets and strategy in line with EPPA criteria■ Higher risk, earlier stage funding, capacity building

■ Shareholders and governance have a clear focus on microcredit

■ Centralised assessment and decision making process

■ Branch network with high degree of outreach, particularly in Northern and Central Italy

■ Strong track record, management and staff expertise in microfinance

■ Strong attention to costs and risk covering, balance between social objectives and commercial approach

■ Sustainability of model will encourage other players to start micro- ventures in Italy

EIF’s First Direct Equity Investment into a Non-Bank Microfinance Institution