This document provides an agenda for a webinar on post-Covid financial challenges and funding solutions for businesses working from home. The webinar includes presentations from experts in private funding, public funding, and the economic impacts of lockdowns. Jean Van der Spek from PwC will discuss the recession's impacts and alternatives. Nicolas-Alexandre Verdbois from Look&Fin will cover crowdlending as private funding. Mathilde Levy from finance&invest.brussels will discuss complementary public funding solutions. Time is allotted for Q&A. The webinar aims to help businesses address liquidity, solvency, and financing issues arising from the pandemic.

1. Webinar 9 : Post-Covid
Financial / Coronavirus
Homeworking Challenge

2. Programme
• Introduction (3min)
• Jean Van der Spek from PWC will bring the wide
picture of the situation with "Lockdown"
recession's impacts and funding solutions
alternatives (10min)
• Nicolas-Alexandre Verdbois from Look&Fin about
Crowdlending, successful private funding (15min)
• Mathilde Levy from finance&invest.brussels
about Complementary public funding solutions
(10min)
• Q&A (10min)
• Conclusion (2min)

3. Your Speakers
Toon Vanagt
Host, Board of FinTech Belgium
CEO of data.be
Nicolas-Alexandre Verdbois
Business Analyst Director
Look&Fin
Mathilde Levy
Investment Manager Start-up / Scale-up & SME
finance&invest.brussels
Jean Van der Spek
External Consultant M&A FS
PWC

4. Your Speakers
Jean Van der Spek
External Consultant M&A FS
PWC

5. Context : How bad is it Doctor?
2 Immediate and acute
3 Global, economy and geography
4
Consequences on financing:
• Liquidity
• Solvability
1
Unknown magnitude for all of us, i.e.
extremely severe

6. US weekly Jobless Claims

7. Measures taken – Belgium
Liquidity
• Temporary unemployment - take
care of people - companies and
consumption
• Set of payment postponement
measures:
- State level: VAT, Taxes (Cies
and individuals), Social security,
...
- Banking - Financing:
postponement of capital
repayment (mortgages, leasing,
consumer credit, ...)
• State bank guarantee scheme for
new credits
• Fiscal measures: Belgium as
been creative and daring :
- Carry back
- Tax free “reconstitution”
reserves on future profits
Solvability
• Federal level: Ad hoc via SFPI-
FPIM, tax measures
• Regional level : limited but
existing
- Structural
o Flanders (via PMV): € 250 mio
subordinated loans
o Finance.Brussels
- Ad hoc: investment vehicles:
finance.brussels, PMV, SRIW-
Sogepa, ...
Insolvency moratorium

8. Measures taken – Belgium
FRESH FROM THE PRESS

9. How will the recovery look like?
The different recovery
paths

10. Covid-19: base vs stress scenario
(45%)
(40%)
(35%)
(30%)
(25%)
(20%)
(15%)
(10%)
(5%)
0%
5%
January February March April May June July August September October November December
Monthly impact on added value (%)
BNB PwC (base scenario) PwC (stress scenario)
Scenario
Added Value
(Yearly Impact - %)
BNB -13.09%
PwC (base scenario) -13.28%
PwC (stress scenario) -15.56%
Scenario GDP Variation (%)
BNB n.a.
PwC (base scenario) -7.67%
PwC (stress scenario) -8.80%
Crisis wave 1 Crisis wave 2
The covid-19 crisis is expected to decrease
added value for 2020 by 13.3% under the
“base” scenario and by 15.6% under the
“stress” scenario.
Source: PwC analysis

11. CFOs, what’s your covid-19 exit
strategy?
49% of CFOs believe
operations could return to
normal in 3 months if the
COVID-19 crisis ends today
Immediate concerns:
• Flattening the curve of a potential
cash shortage
• Ensuring business continuity through
digital and
• Implementing social distancing
measures.
First response measures
• Flatten the curve (control liquidity and
identify major risk areas in EBITDA) ;
• Implement safety measures and adapt
to new ways of working
70% are greatly concerned
about the potential business
impact of the crisis
Exit strategy:
• Stay home, stay digital: Focus on
driving operational improvements and
build a digital operating model.
• Relaunch your business:
– Focus on prioritising activities
that drive the business and
improve profitability without
losing focus on long-term
objectives.
– Focus on optimising operating
costs, but ensure alignment with
core capabilities and long-term
strategy.Source: https://www.pwc.be/en/news-
publications/2020/cfo-covid-19-exit-strategy.html

12. Financing : keep learning and
smiling

13. Your Speakers
Nicolas-Alexandre Verdbois
Business Analyst Director
Look&Fin

14. Agenda
1. Introduction crowdlending & Look&Fin
2. Impact Covid-crisis & how we reacted
3. Alternative funding solutions for recovery

15. Crowdlending: successful private
funding
- 4 types of Crowdfunding:
- donation
- reward
- equity
- lending
- 2 types of Crowdlending:
- P2P lending
- P2B lending
- P2B Crowdlending allows SME’s to borrow
money directly from private savers.

16. Look&Fin: Key Facts & Figures

17. Look&Fin: type of loans &
advantages

18. Covid-crisis: how we reacted
Week 1 : analyse the situation and define action plan
Week II : contact every portfolio company and make an
assessment (green – orange – red)
Week III : grant grace periods of 3 to 6 months for red
companies
Week IV : poll our investment community about their
willingness to continue financing the real and local
economy
Week V – now : weekly call with red companies, monthly
call with green and orange. Relaunch investment
opportunities.

19. Covid-crisis: how we reacted
Conclusion:
1. 25% of portfolio companies heavily impacted
(red)
2. Grace period granted for 35 companies
3. 92% of investors willing to continue to lend
(with partial/total guarantees)
4. 78% willing to grant min I year grace period
5. Launch new type of loan to help SMEs to
recover Covid-crisis

20. Financial problems for SMEs
Liquidity vs Solvency problem
1. Liquidity crisis: less revenues, need for cash
Banking measures :
1) grace periods
2) “Bazooka”: 50 billion EUR to guarantee new
short-term bank loans (12 months bullet)
2. Solvency crisis: 2020 losses will decrease
equity
1) ???
Various calls from the academic, political and socio-
economic world to mobilize private savings to strengthen
SMEs equity.

21. Private savings to relaunch the
economy
“Mobilizing savings to strengthen the
equity of SMEs and relaunch the
economy”
Recovery Loan: a new type of loan dedicated to SMEs
looking for solutions to start the recovery and sustain
their activity by strengthening their equity.
A loan designed to give businesses time to
recover!

22. Recovery Loan: characteristics

23. Recovery Loan: advantages
1. Strengthen capacity to overcome the crisis
Experts estimate that SMEs will need 2 years to rebuild their equity
before the crisis. By strengthening their equity now, SMEs will be
better equipped to face the consequences of the health crisis.
2. Complement bank loans
Short-term bank loans provide a one-off solution to a liquidity crisis,
while the quasi equity capital provided by Look&Fin is used to
address a solvency problem. By increasing equity, SMEs strengthen
their financial structure in the long term.
3. Diversify sources of funding
By diversifying the sources of financing, SMEs limit their
dependence on a limited number of bank creditors, which is
particularly advisable in a context characterized by a possible
tightening of the conditions for granting credit.

24. Your Speakers
Mathilde Levy
Investment Manager Start-up / Scale-up & SME
finance&invest.brussels

25. What is finance&invest.brussels?

26. finance&invest.brussels completes
the financing chain
Idea Product Prototype First
Customers
Growth Expansion
Potential
Time
FFF’s
Business Angels Seed Capital Venture
Capital
Private Equity Public
Markets

27. finance&invest.brussels has 4
instruments in its financing toolbox
Equity Convertible debt Subordinated debt Debt & Co-Financing
Creation, development, innovation, internationalisation
and environmental transition
From € 100.000 to € 5.000.000
Exit within 5 to 7 years Granted for 10 years max.Granted for 3 to 5 years
Usually without a guarantee requirement
► Equity stake taken to
provide a capital increase
► Minority shareholder
alongside other private
investors
► Position taken by investor, conversion
decision in his hands
► If conversion ratio is determined, a
valuation must be agreed upon
► If conversation ratio not determined, a
valuation can be postponed
► Conversion can be refused by paying a
non-conversion penalty
► Company needs to be able to carry the
debt
► Debt is subordinated to traditional bank
loan
► Can be considered as Tier I capital
► Improves Debt-to-Equity ratio
► Company needs to be able to carry the
debt
► Debt is complementary to traditional
bank loan
► Bank guarantees are shared amongst
parties (“pari passu”)

28. What has finance&invest.brussels been doing since
the beginning of the Covid crisis?

29. Finance&invest.brussels is still open
 We have continued investing
- Focus on helping portfolio companies
- Invest in projects (startups, scaleups, mature SMEs)
- Delay to get a décision
 Specific mission from the Brussels Region for the HORECA sector
- 40M€
- Suppliers of the Brussels Horeca sector or
bars/restaurants/hotels with more that 50 FTEs
- Company has to be in good financial health on 31/12/19
- Loans without garanties (no negative pledge - no pari passu
clauses)
 Brussels Regional Guarantee Fund
- Bank loans > 24 months can be guaranteed through FBG
- Company has to be in good financial health on 31/12/19
- Possibility to guarantee between 50 to 65% of the bank loan

30. What do we hear on the field?

31. Field feed-back
 Companies have been confronted to different types of
problems:
- Companies that have been stopped: on the short term cash
problems of different magnitude
- All companies: uncertainty about the recovery (timing/pace /
change in consumption habits /…)
- Difficulties in raising credit even with the federal guarantee
- Delay / postponement in fundraising
- Many payments have been postponed (moratoriums /
postponements /…)  risk of default within a few months
depending on 2 factors (if slow recovery, cash not reconstituted)

32. Field feed-back
 HR perspective:
- Absenteeism / illness  payable by the company for the first 30
days
- All employees don't want to go back to work
- Sometimes significant additional costs to reopen in accordance
with the instructions (guards / gels / masks / gloves /
disinfection / cleaning / organization of circulation (markings,
etc.)) when the cash is already missing
 What can be remembered
- Ability for companies to pivot during the crisis
- Ability for companies to go into hibernation
- Support of the board of directors to the management of the
company
- Cash management is crucial
- Keep contact with clients

33. Thank you!

34. Thank you!
Silver partners
Bronze partners

35. Join us :
• /FREE Webinar 10: Credit Risk Management/ Coronavirus Homeworking Challenge,
Friday June 5th, 2pm
• /FREE Webinar 11: Alternative Payements / Coronavirus Homeworking Challenge, Friday
June 12th, 2pm
• /FREE Webinar 12: How do you deal harmoniously with a bankruptcy?/ Coronavirus
Homeworking Challenge, Friday June 19th, 2pm
• /FREE Webinar 13: Healthy Financials/ Coronavirus Homeworking Challenge, Friday June
26th, 2pm
SEE YOU ONLINE😊