Donatas SavickasDeputy CEO

Conference on JEREMIE and JESSICA:Towards successful implementation

30th November 2010

Šiaulių bankas at a glance

2

Biržai

Vilnius

Kelmė

Šilutė

Klaipėda

Palanga

Mažeikiai

Kuršėnai

Utena

TelšiaiPlungė

Marijampolė

Visaginas

Druskininkai

Kaunas

Alytus

RadviliškisPanevėžys

Anykščiai

Kėdainiai Ukmergė

JonavaTauragė

Šiauliai

The Bank was established in 1992; Assets - EUR 660 million; the sixth largest

bank in Lithuania; The main shareholder – EBRD, owns 22.44

per cent;

Shares listed on the NASDAQ OMX Vilnius; 77 per cent of the authorized capital –

residents; Loans to SMEs – 63 per cent of total loan

portfolio;

51 outlet operating in 31 town;

Customers’ segments Small and medium sized businesses;

Regional municipalities;

Private individuals, related to SMEs;

Network Key facts

Overview of new Financial Instruments

3

April2009 Call for EoI No. JER–004/2

Funded Risk Sharing Product Agreement for EUR 20 mln signed in January 2010

October2010

Call for EoI No. JER-004/4First Loss Portfolio Guarantee The Bank has been pre-selected for further analysis;

due diligence has taken place last week

September 2010

Senior Loan European Progress Microfinance Facility The process is under discussions

December2009

Call for EoI No. IR–865 Modernisation of multi-apartment

buildings Agreement for EUR 6 mln signed in May 2010

July2010

Call for EoI No. IR–914 Modernisation of multi-apartment

buildings

Agreement for EUR 20 mln is planned to sign in November 2010

EIF and JEREMIE

EIB and JESSICA

Our Experiences of the Selection Process

4

Process is very thorough and very detailed;

Executed very professionally;

We would summarise it as “Tough but Fair”;

Successfully completing the process allows Šiaulių bankas to:

Continue to pursue our strategy and focus;

Expand our business volumes even during difficult times;

Add more value to our customers;

Cooperation with governmental and multinational institutions

5

The Bank - active participant in the Economy Stimulation Plan (ESP) approved by the Government of the Republic of Lithuania in February 2009. The ESP consists of 5 parts and includes JEREMIE and JESSICA as well.

expansion of business funding opportunities;

extension of energy efficiency of buildings;

accelerated Use of the EU Structural assistance;

improvement of business environment;

promotion of export and investment;

30 per cent of governmental funds assigned to the expansion of business funding opportunities in Lithuania has been provided via Šiaulių bankas;

Funding nearly EUR 100 million has been granted to the Bank during the long lasting cooperation with the multinational institutions for financing various projects in Lithuania;

Implementation of Funded Risk Sharing Product

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The dynamics of comitted funds to SMEs

17 seminars to more than 400 SMEs collaborating with the local business centers, governmental institutions, EIF and regional municipalities;

Stimulating demand

Internal workshops to all loan officers and managers of the branches;

Advertising in the regional press and informative broadcasts;

“Success fee” system applied to all Bank’s branches to intensify the lending to SMEs;

48 units of loans have been issued to SMEs from JEREMIE funds as of 1 November;

Real Example of SME Loan

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No of employees 115

Established 1996

Activity Produces waste water treatment equipment and provides the services related to their installation and maintenance.

Project Performing R&D activities the company has decided to build its own experimental workshop and testing laboratory, where the new technological equipment would be implemented. Part of this project is an industrial robot intended for polishing and drilling of the technical components.

Total project amount

EUR 2,238,589

Own resources EUR 718,981

EU Grant EUR 1,121,958

SME loan EUR 397,650

52 working places will be created;

the innovative activities of SMEs will be increased and it will improve the innovative environment in Lithuania;

the intensity of R&D activity in the private sector will be expanded;

The benefit of FRSP to the company and to the development of economy:

Real Example of SME Loan

8

With the FRSP support the company expects to:

Develop its activities by providing services to both local and surrounding communities;

Create at least 4 new workplaces;

Contribute to the development of SME business in rural areas;

SME enterprise Zarasai Hydrotechnical Construction, JSC

No of employees 5

Established 1997

Activity Performs the environment improvement works, digs and treats ponds.

Project To expand the company’s activity and to provide more qualified services it is foreseen to acquire a complete set of engineering soil-working equipment, wheel loader and other equipment.

Total project amount

EUR 376,024

Own resources EUR 71,923

SME loan EUR 304,100

Benefits & Lessons learned

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Provided the Bank with more funding to expand our business whilst staying consistent with our strategy;

Enabled us to build our brand awareness both within Lithuania and beyond;

It has also been a learning process for us as we gain greater experience of working with International Institutions;

Benefits

Unclear definitions of “working capital connected to the expansion of businesses” as well as the “enterprises in difficulties” complicate the financing to SMEs; The limited forms of crediting (especially the exclusion of credit lines) decreases the added value to SMEs in need of financing;

Issues

FRSP brings direct benefits to our customers which remains the most important reason of all; Šiauliu Bankas would seek to participate in similar initiatives in the future.

Conclusions

www.sb.lt

THANK YOU!