Developing and promoting the internationalization of Italian companies. SIMEST SpA. Andrea Novelli, CEO and Managing Director

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1 Developing and promoting the internationalization of Italian companies SIMEST SpA Andrea Novelli, CEO and Managing Director September 21,

2 WHO WE ARE SIMEST is a joint-stock company controlled (76%) by Cassa depositi e prestiti (Cdp) and participated by private shareholders (banks and business associations) Main national banks and business associations 24% 76% Cdp SpA Cdp is the National Promotional Institution, supporting the development of the Italian economic system, directly controlled (80%) by the Italian Ministry of Economics and Finance, with minority interest held by a broad group of bank foundations. In 2015, the Group reached a consolidated balance sheet of around 350 /bln. 2

3 OUR MISSION Promoting the international development of Italian companies, by supporting their growth along the whole internationalization lifecycle Our facilities - overview IDEA SCOUTING TRADING INVESTING Feasibility Studies Foreign markets penetration programmes Participation to trade fairs and exhibitions (SMEs facility) Export credit Capitalization of exporting SMEs (SME facility) Personnel training programmes Foreign Direct Investments in EU and non-eu contries SOFT LOANS AND EXPORT CREDIT SUPPORT MINORITY EQUITY PARTICIPATION + INTEREST RATE SUBSIDY 3

4 Our committment in mln 87 mln 5,2 bn equity soft loans export credit support 58 new equity investments 103 foreign market penetration programmes 27 capitalization of exporting SMEs 11 first participation to trade fairs/exhibitions 8 feasibility studies 2 personnel training programmes 26 buyer s credit 18 supplier s credit 4

5 Worldwide presence as of (*) North & Central America Equity: 97 mln Soft loans: 67 mln Export Credit Support: 1,9 bn Europe Equity: 247 mln Soft loans: 183 mln ** Export Credit Support: 1,7 bn Asia Equity: 171 mln Soft loans: 59 mln Export Credit Support: 1,7 bn South America Equity: 104 mln Soft loans: 21 mln Export Credit Support: 357 mln Africa Equity: 39 mln Soft loans: 9 mln Export Credit Support: 137 mln Oceania Equity: 0,5 mln Soft loans: 4 mln Export Credit Support: 346 mln More than 100 countries 243 equity participations companies supported * Figures don t include: - Export Credit support towards multiple countries (1,1 bn ) - Interest rate subsidies on equity projects paid out to Italian promoter companies (0,5 bn ) ** Including Soft loans for the Capitalization of Italian exporting SMEs (162 mln ) 5

6 INTERNATIONAL NETWORK Italy Sweden Belgium United Kingdom Austria Netherlands Germany Portugal Switzerland Belgium Finland Spain Denmark France Norway European Development Finance Institutions SIMEST is a member of EDFI, the association of 15 European bilateral DFIs, committed to promoting sustainable growth through financing and investing in private sector initiatives in developing economies. Multilateral investment organisations SIMEST cooperates with the world leading multilateral investment organisations such as EIB, EBRD, IFC, ADB, IADB, IDB, AfDB 6

7 OUR FACILITIES Soft loans Subsidized financing to widen Italian companies (especially SMEs) presence in foreign markets Export credit support Interest rate subsidy on Italian capital goods exports Equity Provision of equity capital directly and through the management of the Venture Capital Fund on behalf of the Italian government 7

8 Focus on: SOFT LOANS Purposes facilitating access to foreign markets fostering brand recognition and products diffusion strenghtening the financial soundness of exporting SMEs Subsidized financing at favourable conditionsfor: Feasibility Studies Foreign markets penetration programmes Personnel training programmes First participation to trade fairs and exhibitions Capitalization of exporting SMEs SMEs facilities 8

9 Focus on: EXPORT CREDIT SUPPORT Purposes boosting exports of national capital goods strenghtening competitiveness of Italian manufacturers Interest rate subsidy or stabilization to enable national exporters to offer foreign buyers/contractors deferred payment conditions in line with OECD agreements Eligible exports Capital goods, plant and machinery and related services towards all countries Available Support Up to 85% of the contract value (15% must be paid by cash) Medium long term payment terms (minimum 24 months) Interest rate subsidy On loans granted by italian or foreign banks related to deferred payments at the relevant Commercial Interest Reference Rate (CIRR) set by OECD 9

10 Focus on: EXPORT CREDIT SUPPORT SUPPLIER S CREDIT The Italian exporter grants the foreign buyer a deferred payment against the issue of credit notes, discounted at market rate. Simest corresponds the exporter an interest rate subsidy in a lump sum equal to the difference between the net proceeds of the discounting of the notes at market rate and their present value at the fixed rate based on the CIRR rate (set by OECD). BUYER S CREDIT The foreign buyer receives a loan from a bank at a fixed rate based on CIRR and pays the Italian exporter by cash. By means of a stabilization intervention, SIMEST grants the lender the difference between the fixed rate paid by the borrower (set by OECD) and the market floating rate. Exporter deferred payment promissory notes (at CIRR) Buyer Exporter cash payment Buyer net proceeds (market rate discount) transfer of notes (with or without recourse) Loan (at CIRR rate) Reimbursement Forfaiter SIMEST SIMEST Italian or foreign bank INTEREST RATE SUBSIDY 10

11 Focus on: EQUITY Purposes facilitating Italian business in setting up direct investments abroad supporting technological development programmes by investing in innovation and applied research ENTITY Up to 49% of the foreign company s share capital, not exceeding the Italian investor s direct share DURATION Up to 8 years (can be longer when multilateral development banks are involved) CONDITIONS Participation at market conditions (bailouts excluded) BLENDING Venture Capital Fund: if the foreign company is located in geographical areas of strategic interest (*), the participation of the Fund (at favourable conditions) can be used alongside SIMEST direct equity investment (SIMEST + VCF 49% of the share capital) Interest rate subsidy: financial support on the cost of the loan obtained by the Italian investor in relation to its own equity stake; up to 40 mln per single project ( 80 mln per economic group); applicable to non EU investment projects International financing: the financial structure of the project can benefit from the involvement of international institutions facilities (*) view the updated list on our website 11

12 Focus on: EQUITY EXAMPLE OF BLENDING INTERVENTION ITALIAN INVESTOR Capitalization loan BANK 51% EQUITY IMPRESA EXTRA-UE FOREIGN COMPANY UP TO 49% EQUITY PARTICIPATION + VENTURE CAPITAL FUND ECB rate+ 0,5%/0,75% (SMEs); 1% (LEs) + INTEREST RATE SUBSIDY Up to 40mln/project ( 80mln /economic group) + INTERNATIONAL FINANCING co-financing by DFIs / multilateral financing institutions (if applicable) SIMEST facilities 12

13 Digitalization and simplified procedures (from February 2016) Online application form (paperless) Product updates: SOFT LOANS New access conditions (to be implemented with effect from November 2016) lower interest rate increase in maximum financing amounts widening of eligible expenses bonus mechanisms for selected company categories 13

14 WHAT S NEXT ONE DOOR : integrated offer single access point 14

15 INDIA SIMEST activity (as of ) EQUITY PARTICIPATION Equity participation (no.) 31 SIMEST commitment 32 Mln EUR Total investment 302 Mln EUR VENTURE CAPITAL FUND 20 Sectors Electrical/mechanical engineering (16) Food&agricolture (3) Textile/clothing (3). FINANCIAL SUPPORT 130 projects per 748 Mln EUR 20 export credit 54 foreign market penetration programmes 44 support for investment in foreign companies 12 (pre)feasibility studies and technical assistance 15

16 WHERE WE ARE Rome Corso Vittorio Emanuele II, 323 Tel Milan Via Aristide de Togni, 2 tel Venice Via Torino, 105 tel