EIB Support For Investment In Digitalisation And .

EIB Support for Investment in Digitalisationand Intangible CapitalDigitalisation and Investment in Intangible Capital: TheSpanish Case within the EUBanco de España - EIB ConferenceMadrid 4, November 2019Birthe Bruhn-LéonDirector for Operations IBERIA1

EIB Group PrioritiesEUR64.2bntotal financing in 2018 expected to mobiliseEUR230bninvestmentSMEs MidcapsInfrastructureClimate &EnvironmentInnovationEUR 23.3bnEUR 12.3bnEUR 15.2bnEUR 13.5bn374,000companies with5m employeesBenefits for 34.3million householdsSafer drinking waterfor 20m peopleLeader in climatefinance29m high speeddigitalconnections2

Innovation and Skills ProjectsInvestments in innovation and skills generatepositive externalities by creating new informationand improving human capacity. 29 Million additional households covered by very highspeed broadband service 300,000 Students benefit directly from EIB projects 287,000 Jobs supported in skill-intensive industries andservicesEUR 1.9 bnEducation and Skills14%EUR 13.5bnProjects include: 86%Education & TrainingProjects in cohesion regionsInnovation enabling infrastructureRDIEUR 11.7 bnResearch and DevelopmentThe EIF ImpactInnovFin Guarantees and EquityUnder InnovFin, the EIF provides guarantees to financialinstitutions that will, in turn, provide loans to innovativecompanies (InnovFin SME Guarantee, or SMEG), or throughmaking equity investments and co-investments, to, oralongside, funds focusing on innovative companies in theirpre-seed, seed and startup phases (InnovFin Equity). InnovFinis a joint EIB Group and EC initiative under Horizon 2020, theEU research programme for 2014-2020.2018 Highlights More than 15,000 innovative companies supportedA record breaking number of Venture Capital transactionsto allow new funds to be raised and existing funds togrow – 96 (EUR 1.6bn)EUR 12bn of commitments deployed by the EIF through anetwork of 398 fund managers3

EIB Group Activity in Spain 201889# Operations Long-time # 1 beneficiary country of EIB financing Projects with high impact on growth, employment,innovation, and climateEUR8.5bnSignatures44

Investment Plan for Europe (“Juncker Plan”)Investment Plan for EuropeFinance for InvestmentEuropean Fund forStrategic InvestmentsInvestment AdviceEuropean InvestmentAdvisory HubInvestment friendlyenvironmentImproving theregulatory environmentCooperation withNational PromotionalBanksEuropean InvestmentProject PortalStructural reformsEFSI in SpainAim: to mobilise at least 500 billion in investmentacross the EU by 2020Number of transactions140Approved EFSI financingEUR10bnExpected investment related to EFSIEUR49bn # 3 country in EFSI approvalsand investment mobilised; # 6in relation to GDP 37% of total for Innovation/Digitalization Financing Highly increased footprint ofEIB in Corporate/ MidCaplending for the co-financing ofprojects5

European Investment Advisory HubTHE HUB IN NUMBERS: Since its launch in 2015, the Advisory Hub hasreceived 1,102 requests, including 416 in 2018.Of which, the hub has given guidance to morethan 900 companies and public bodies across theEuropean Union. The Hub has received 21 requests from theIberian Peninsula during 2018.Helping set up Investment PlatformsSupporting a wide range of sectors and activitiesCategories: Dedicated vehicle Co-financing agreement Risk-sharing modelBenefits: Flexible and adaptable to different marketneeds, intermediaries and geographiesCan combine EFSI with ESIF fundingNew ways of collaboration between EIB groupand NPBI’sAdvisory Hub AssistanceResearch,development andinnovationDevelopment of theenergy sectorTransport infrastructures,equipment & innovativetechnologies for transportInformation andcommunicationtechnologiesHuman capital,culture and healthFinancial support forSMEs & small midcapsEnvironment andresource efficiency6

EIB Group Finance for Innovation & Digitalisation in SpainEIB & EIF Financing Innovation in Spain (2015-19E)3,500EIFEUR 2018Venture DebtIntermediated Lending Cloud solutions RDI for Media groups and Telecom operatorsInnovFin MidCap growth / Deployment of Fiber-to-Home NetworkCorporate (MidCap) Lending More than EUR 1.6bn signed to finance corporate (ex. Telecomand Utilities) innovation since 2016, more than 20 operationsMost active sectors are Agrofood, Automotive, Pharma, andSteelCatalysed by EFSI2019EProgramme loan for Innovation & digitalization of SMEsTechnology & Digital platforms programme for the bankingsectorPublic Sector Strategic Research and Innovation SpainEIF GuaranteesEquity – Venture Capital7

InnovFin: Financing tools and advisory services for the entire value chain of research and ienceAdvisoryThematic ovFinTechnology transferSME GuaranteeEmerging InnovatorsScienceEnergy Demo ProjectsAdvisoryInnovFinInnovFinInnovFinBusiness AngelsMidCap GuaranteeInfections DiseasesInnovFinInnovFinInnovFinVenture CapitalCorp. Research EquityThematic InvestmentPlatformsImproving the quality ofinvestment projects by offeringtailored advisory support toEuropean project promoters.InnovFinFunds of FundsEarly-Stage Enterprises,SMEs and Small Midcaps 500 EmployeesSMEs and Small Midcaps 500 EmployeesSMEs, Midcaps, Large Caps,SPVsResearch Institutes,Universities, ResearchOrganizationsSMEs, Midcaps, PossiblyLarge Caps, SPVsPublic and Private Sector PromotersIntermediated EquityFinancingIntermediated DebtFinancingDirect and/or IntermediatedFinancing (including equitytype)Direct Financing(including equity type)Direct and or IntermediatedFinancing (including equitytype)Financial AdvisorySmart Finance for SmartBuildings (SFSB)EUR 150mThe operation entails theimplementation of the innovativemid-caps in accordance withHorizon 2020 eligibilities. 50% ofthe credit risk associated with aportfolio of new loans originated byBanco BPI SA. The guaranteedportfolio will be composed ofinnovative mid-cap loans.EUR 1.2bnEUR 60mFinancing of the RDI investmentprogramme carried out by the SpanishSecretary of State for RDI as part of anation-wide strategy to improveSpanish innovation andcompetitiveness. Beneficiaries will bepublic research infrastructures andorganizations across Spain as well asresearchers and research institutions.The WindFloat project covers thedesign and installation of a 25MWfloating offshore wind farm c.20km offthe coast of Portugal, 85-100m deep. Itwill comprise 3 floating substructureswith recently developed wind turbinesof the 8.4MW class. The project wouldalso include and export cable sectionsto a fixed sub-sea cable connectionthat is to be installed and operated bythe transmission system operator.10-201812-201804-2016Note: InnovFin Large Projects succeeded by InnovFin Emerging InnovatorsInnovFin MidCap Growth Finance to be deployed in the future under the European Fund for Strategic Investments (EFSI)SFSB is an EU-wide initiativeaiming to finance energyefficiency projects in buildings.The Hub undertook initial pilotactions in France, Malta,Romania, and Spain. It alsoconducting a study on ratings forloans devoted to energyefficiency projects and hasdeveloped a guidance note forEnergy Performance Contractsfor public buildings renovationthrough ESCOs (Energy ServiceCompanies)8

Venture DebtFinancing StageTarget CompaniesVenture Debt finances growth stage of small innovative companies.Innovative company with growth driven by thevalue of your own intellectual property, and noaccess to bank debtExample situations that can be financed with Venture Debt: Scale-up from pilot to mass manufacturing Development of products & services through R&DStart-up, SME or mid-cap with less than 3,000employees and growing, including pre-profitcompanies International expansionVenture DebtFinancing early-late growth stage: Mostly young start-ups or SMEsLimited sales but fast growthPre-profit, breakeven in 1-3 years3Y investment plan EUR 15mBank DebtCompany already raised Series B/C ventureequity and needs additional financing toaccelerate growthStrong and sustainable business model/plan,professional management & investors, andestablished corporate governanceSeed/Venture CapitalInvestments to be financed are located in theEU, amounting to at least 2x the size of theventure financing requestedSet-upProof ofconceptEarlycommercializationEarly growthLate growthMature9

Venture DebtSelected operations in SpainDigital products & servicesAmount:Sector:Country:Signed:EUR 7.5mSoftwareSpainDecember 2018Investment rationale: Boost growth of new digital TV &educational language platforms Milestone-based disbursement intranches, mitigating risks for EIBInfectious diseases diagnosticsAmount:Sector:Country:Signed:EUR 20mLife SciencesSpainJune 2017Investment rationale: Enable faster/better diagnostics toreplace existing complex protocols toobtain analytical results Milestone-based disbursement intranches, mitigating risks for EIB10

Corporate MidCap Lending supported by EFSISelected operations in SpainEUR 160mEUR 25mEUR 116mEUR 100mProject:RDI investmentsfor automotivemechanisms, body-inwhite and chassis inGestamp’s existingpremises.Project: RDI for IT andEngineering services insectors such astelecommunications,health and industryamongst others.Project: RDI for ITsolutions aimed at theadaptation of itsbusiness model to thee-commerce reality oftoday.06-201611-201612-2016Project: CAPEX forinstallation of advancedmanufacturingequipment in acohesion priority region.RDI on existing andnew products.12-2016EUR 45mEUR 30mEUR 70mEUR 100mProject: RDI in preclinical and clinicaldevelopment of variousdrugs for thetherapeutic areas ofpsychiatry andoncology.12-2017Project: RDI fordeveloping new rollingstock solutions forcommuter and highspeed trains. CAPEXfor manufacturing andmaintenance.12-2017Project: placement ofend-of-life stainlesssteel productionequipment byimplementing a newcold rolling mill.12-2017Project: Expanding andupgrading the telecomequipment, increasingthe wireless coverage inrural areas anddensification in urbanones.12-2017EUR 100mEUR 32.5mEUR 35mEUR 80mProject: Supporting theRDI activities related toautomotive interiorproducts and thedeployment of advancemanufacturingtechnologies.06-2018Project: RDI andCAPEX formanufacturing ofelectrical equipment forelectric powertransmission anddistribution.07-2018Project: Energyefficiency, constructionand renovation ofhotels and RDI of asocial enterprise thatemploys 14,000 peoplewith disabilities.07-2018Project: Supporting theRDI and CAPEXactivities for the designand manufacture ofvehicles componentsand subassemblies.07-2018EUR 25mEUR 110m12-2016Project: RDI forautomotive decorativesolutions to reducevehicle’s weight andimprove fuel efficiency.CAPEX for capacityupgrading.06-2017Project: RDI for thedevelopment ofinnovative engineeringsolutions in renewableenergies, aerospace,marine and railwaytransport.06-2017EUR 85mEUR 25mEUR 100mProject: Continuance ofexisting RDI programsin plasma proteins forvarious therapeuticareas and CAPEX forthe improvement ofmanufacturing.12-2017Project: RDI activitieson complex metallicparts for the automotivesector and CAPEX forupgrading themanufacturingprocesses.12-2017Project: Research,development andinnovation (RDI) in thewater treatment,renewable energy,services andinfrastructure sectors.01-2018EUR 26mEUR 26mEUR 85mProject: R&D programsProject: Research,development andinnovation (RDI) theareas of fuel efficiency,light weighting andadvance manufacturingtechnologies.11-2018EUR 80mProject: RDI for ICTservices and solutionsin transport, air trafficmanagement, digital,homeland security andsmart energy.in the constructionsector. Additionally,the promoter willexpand its existingrental fleet in Spainand Poland.10-20182nd tranche of existingRDI programs in plasmaproteins for varioustherapeutic areas andCAPEX for improvementof manufacturingprocesses.12-201811

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tranches, mitigating risks for EIB Infectious diseases diagnostics Amount: EUR 20m Sector: Life Sciences Country: Spain Signed: June 2017 Investment rationale: Enable faster/better diagnostics to replace existing complex protocols to obtain analytical results Milestone-based disbursement in tranches, mitigating risks for EIB