This presentation provides an overview of Altum, Latvia's national development finance institution. It discusses Altum's business model, portfolio, and funding sources. Altum provides loans, guarantees, and venture capital to priority sectors in Latvia to promote economic development. As of December 2017, Altum had a diverse portfolio of €441 million consisting of loans, guarantees, and venture capital investments. It maintains a strong liquidity position with a liquidity ratio over 500% and diversified funding sources.

1. ALTUM
INVESTOR
PRESENTATION
April 2018

2. 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
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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.
No information contained in the presentation may be copied, photocopied, duplicated, reproduced, passed on, redistributed, published, exhibited or the contents otherwise divulged, released
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The presentation does not constitute or form part of, and should not be construed as, an offer, solicitation or invitation to subscribe for, underwrite or otherwise acquire, any securities of the
Company or any member of its group nor should it or any part of it form the basis of, or be relied on in connection with, any contract to purchase or subscribe for any securities of the
Company or any member of its group, nor shall it or any part of it form the basis of or be relied on in connection with any contract or commitment whatsoever. If any such offer or invitation is
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invitation should be made solely on the basis of such prospectus and not this presentation. Any person considering the purchase of any securities of the Company must inform himself or
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This presentation includes "forward-looking statements," which include all statements other than statements of historical facts, and involve known and unknown risks, uncertainties and other
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future business strategies and the environment in which the Company will operate in the future. By their nature, forward-looking statements involve risks and uncertainties because they
relate to events and depend on circumstances that may or may not occur in the future. Accordingly, any reliance you place on such forward-looking statements will be at your sole risk.
These forward-looking statements speak only as at the date as of which they are made. Past performance of the Company cannot be relied on as a guide to future performance. No
statement in this presentation is intended to be a profit forecast.
This presentation is not directed to, or intended for distribution to or use by, any person or entity that is a citizen or resident or located in any locality, state, country or other jurisdiction where
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securities for sale in the United States. No securities have been or will be registered under the U.S. Securities Act of 1933, as amended (the “Securities Act”) or with any securities regulatory
authority of any state or other jurisdiction of the United States and securities may not be offered, sold or delivered within the United States except pursuant to an exemption from, or in a
transaction not subject to, the registration requirements of the Securities Act and applicable state securities laws and may only be sold outside of the United States in reliance on Regulation
S under the Securities Act and otherwise in compliance with all applicable laws and regulations in each country or jurisdiction in which any such offer, sale or delivery of securities is made.
The Company does not intend to register or to conduct a public offering of any securities in the United States. This presentation and its contents may not be viewed by persons within the
United States (within the meaning of Regulation S under the Securities Act).

3. CONTENT:
I. Business Overview
II. Portfolio Overview and Funding,
12 M 2017
Source: Pixabay.com

4. KEY CREDIT STRENGHTS
 Ownership by The Republic of Latvia rated A3/A-/A- by Moody’s,
S&P and Fitch respectively and clearly expressed support
 Long-term issuer credit rating Baa1 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

5. I. BUSINESS OVERVIEW
Source: Pixabay.com

6. 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
Ministry of
Economics
30%
Ministry of
Agriculture
30%
Shareholders of
Development Finance Institution ALTUM
Ministry of
Finance
40%

7. HISTORY AND LEGAL BACKGROUND
Latvian Guarantee Agency
Rural Development Fund
Altum
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

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

9. BUSINESS MODEL
 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
Total assets 451.7* MEUR
Number of outstanding contracts 14,402*
Loans
207.6* MEUR
Guarantees
182.4* MEUR
VC
51.3* M
* 31 Dec 2017
MID TERM
TENDENCIES
LOANS
VENTURE CAPITAL
GUARANTEES

10. BUSINESS OVERVIEW: CLIENT SEGMENTS
 Portfolio increased by 18.1 MEUR in
2017.
 The portfolio structures of the loan and
guarantee financial instruments echo
the state aid implementation priorities of
the Latvian government.
 Major segments by volume – SMEs &
Midcaps and Agriculture.
 The fastest growing segment – SMEs &
Midcaps, +9% in year 2017.
 In 2017 total volumes are 123.1 MEUR (56% - guarantees,
42% - loans and 2% -venture capital investments).
 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
* Gross value

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

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

13. FOCUS
AREAS
leading to
efficiency
New
products
Funding
Core
business
Improve
customer
service
Operational
efficiency
 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 InnovFIN Facility allows to issue guarantees to
innovative projects at lower rates.
 Strategic shift in funding sources to decrease
administrative burden for the staff.
 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.
NEW PRODUCTS & EFFICIENCY

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

15.  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
IMPROVING OPERATIONAL EFFICIENCY

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

17.  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
31 Dec 2017

18. EXCEPTIONALLY STRONG LIQUIDITY POSITION
 High liquidity ratio – maintained over
350%*
 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)
* 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
Cash at Banks
(Aa1-Aa3);
21.1
Cash at Banks
(A1-A3);
Cash at
Banks (Ba1-
Ba3);
3.2
Cash at State
Treasury;
61.8
Bonds issued by
the Republic of
Latvia ;
Liquidity portfolio MEUR

19. VENTURE CAPITAL: PROFESSIONAL
SELECTION AND BALANCED RISKS
Business
idea
Business
start-up
Early
growth
Expansion
growth
Stable
growth
Risk
HighLow
Portfolio 51.3 M EUR,
189 projects, 11 funds
 Investment decisions made by professional
fund managers – publicly procured
 Ticket size within diversified range
up to 11%
Medium
Expansion Capital Funds (5)
36.6 MEUR, 76 projects
(Additional 1 contracted Q1 2018)
Venture Capital Funds (3)
10.2 MEUR, 22 projects
(Additional 2 contracted Q1 2018)
Seed Capital Funds (2)
4.5 MEUR, 91 projects
(Additional 4 contracted Q1 2018)
Acceleration Funds (1)
0 MEUR, 0 projects
(Additional 2 contracted Q1 2018)

20. KEY FINANCIAL AND PERFOMANCE INDICATORS (1)
Key Financial data 2017 2016 2015
Net income from interest, fees and commissions, TEUR 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%
Employees 230 242 282
Total assets, TEUR 451,686 443,126 406,918
Tangible Common Equity(TCE)/Tangible Managed Assets (TMA) 35.6% 35.2% 37.3%
Equity, TEUR 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
Liquidity Ratio 180 days 507% 449% 352%

21. 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
Venture capital funds 51,310 58,541 39,929
Total 441,271 423,145 389,611
Number of contracts 14,402 11,449 8,901
Volumes granted (TEUR) (by financial instrument)
Loans 51,869 59,465 52,329
Guarantees 68,615 56,109 50,065
Venture capital funds 2,638 21,356 18,798
Total 123,122 136,929 121,192
Number of contracts 4,697 4,461 2,819
Leverage for raised private funding 185% 162% 104%
KEY FINANCIAL AND PERFOMANCE INDICATORS (2)

22. www.altum.lv