PRESENTATION

Wallonia Invest Fair (Liege)

Christophe DENIS: Senior Investment Officer

December 5, 20131

Mission Statement

“To provide capital and know how for international

investments of Belgian private sector companies.”

STRUCTURE OF PRESENTATION

• ABOUT US• OUR PRODUCTS• OUR BUSINESS PRINCIPLES• OUR WORKING METHOD• PROJECT OVERVIEW• WHAT OUR CUSTOMERS SAY ABOUT US• CUSTOMER REFERENCES• CASE STUDIES

ABOUT US

BMI-SBI is a semi-public financial institution on federal level active in the medium to long-term co-financing of foreign investments by Belgian companies

Created in 1971 : over 300 projects in more than 50 countries

Past & Current Clients: IBA, Resilux, Versele Laga, DesleeClama, Septentrio, Vanreusel Snacks, Sipef, Sonaca, SIAT, LVD, Machiels, Schreder, Deroose Plants, Magotteaux, Eurogentec, Stokota, Boortmalt, Pauwels Trafo, Etex – groep, ICOS, Lano Carpets, Fruytier, Vitalo, Eden Chocolates, Exki, Polet Water Group...

ABOUT US / CAPITAL AND SHAREHOLDERS’ STRUCTURE

Equity Capital = € 35,5 million + € 8 million endownmentsMain shareholders / partners:

National Bank of Belgium 6% FPIM/SFPI 58%

Others 5%

Electrabel 5%

ING Belgium 7%

BNP Paribas Fortis 19%

ABOUT US: EXTERNAL FINANCING

– Endowments from the Belgian State for projects in Asia (€ 3,7 Mio) and Central & Eastern Europe (€ 2,9 Mio)

– Collaboration with the regional authorities in Belgium, i.e. for investment projects with Flemish companies SBI-BMI works with Fonds Vlaanderen Internationaal (=linked to PMV), for Walloon companies we work with AWEX/SOFINEX

– Collaboration with European EDFI colleagues, mainly DEG and BIO, allowing co-financing up to € 30-60 Mio for projects in developing/emerging markets

OUR PRODUCTSTailor-made financial products at the level of the foreign entity, normally without parent guarantee Amounts between € 400.000 and € 2.500.000 and higher via external financingAt market conditions with matching (cash) contribution by the Belgian Partner

•EquityMinority stakes. Target IRR > 15%. Exit after 5-10 years at pre-defined exit terms (put & call

options/trade sale/IPO)

•Quasi-equitySubordinated, participative and convertible loans normally in € combining fixed interest rates

with variable interest rates based on the success of the project. Terms of 5-10 years with grace periods of 2-3 years

•Medium- and long-term loansComplementary to equity or quasi-equity;

35% equity Portfolio

45% quasi-equity

20% senior loans

BUSINESS PRINCIPLESPartner profile• SME’s (with a minimum turnover of € 8 Mio), Medium Sized Enterprises &

Stock quoted companies (i.a. Resilux S.A., IBA S.A…)• Relevant track record• Start / expand the internationalisation of their activities via a foreign

investmentProject profile• “Greenfields”, expansions of existing projects,

acquisition of existing companies• Wholly owned subsidiaries, joint ventures (majority equity holding by the

Belgian partner / profit centre)• Type of industry: reflection of prominent (industrial / services) sectors of

the Belgian economy

BUSINESS PRINCIPLESBUSINESS PRINCIPLESSpread per sector

Agro-Food 26%

Metal sector & related industries 16%

Chemical, Medical & Pharma, Packaging 26%

Other 32% (Infrastructure, Textile,

High-Tech, Finance)

BUSINESS PRINCIPLESCountry policy• World-wide / more remote & difficult regions• Economic interest both to Belgium & host country• Delocalisation issue and corporate social

responsability « sustainable development »

Geographical Coverage by Region:

WORKING METHOD1) Preliminary screening by BMI/SBI to determine whether the project falls

within the criteria.2) Extensive analysis including:

• historical, financial and legal standing• due diligence of the Belgian company• market sector, market share, growth rate,…• business plan/forecasts for 3-5 years;• management information;• funding requirement and usage & financial structure;• the proposed financing deal;

3) The legal documentation — upon fulfillment of all conditions precedent the funds will be disbursed to the project. ⇒ From first contact to final approval: 2-3 months

SUMMARY

• Only investments in private sector Belgian companies.

• Mezzanine financing/equity participation (5-10 years, grace period, local level)

Patient Capital

• Assistance & Mediation services, active follow-up

Tailor made approach

• Alignment of interests

Smart money

Capital of € 35,5 Mio Capital of € 35,5 Mio (main shareholders: SFPI, BNP Paribas Fortis, ING) + external financing + external financing (endowments, collaboration with regional entities, (Sofinex, PMV) and EDFI colleagues

1) Sonaca Montreal (Canada) => subordinated loan of € 1,500,000

2) Exki (USA, New York)=> minority participation of € 1,500,000

Why SBI ? -Risk’s diversification-Diversification of financing ressources-Improvement of the financial structure-Investment of SBI at local level - Our experience over the last 40 years

CASE STUDY

SONACA Montreal : General presentation

• Sonaca Montreal is a 100% subsidiary of Sonaca North America which in turn is a 100% subsidiary of Sonaca SA (Gosselies, Belgium)

• The group Sonaca is an international group (presence in Brazil, North America, United States and China) mainly held by the Wespavia with 88,6% (80% hold by the Walloon region and 20% by the S.R.I.W.) and by the S.F.P.I. (Société Fédérale de Participations et d’Investissement) with 10,3%. The group employs 2,000 persons worldwide of which 1,600 in Belgium.

• Sonaca Montreal (based near Montréal) is active in the aeronautics industry in the field of machinig, forming and assembly of large chipsets (“panneaux d’ailes”) => Key wings elements for regional and business jets

• The main customers are Bombardier, Embraer, Spirit, Israel Aircraft Industries, Mitsubishi and Triumph for all of whom the company is a key supplier

SONACA Montreal : project description

– In 2007, it was decided to extend the existing Canadian activities. In that respect, SBI (together with the Sofinex) participated in the financing of the investment project.

– The investment project consisted of : • The increase of the building (from 12,000 m² to 20,000

m²) mainly for the forming activity and the modernization of the production processes

• The increase of the forging activity through the purchase of a 3rd machining table

• The replacement of the existing anodization line• Various replacement investments

=> The total investment project amounted to $CAD 17 Mio (+- € 13 Mio)

SONACA Montreal

Business jet

Sonaca Montreal in Mirabel

Chipsets (panneaux d’ailes)

Regional jet

SONACA Montreal : Financial proposal SBI

• Preliminary Screening presented to the Board of SBI on September 21, 2007. Approval given by the Board for a participation of € 1,5 Mio through a subordinated loan

• The due diligence of the project was realised in October 2007

• Final approval by the board of BMI on November 2007

• Structure of the agreement was as follows: – Amount : € 1,5 Mio (split with Sofinex); – Maturity : 7 years including a grace period of 2 years – Interest rate : combination of a fixed rate + a variable interest

rate according to the realised EBITDA’s

• Due to very bad economic circumstances (financial and economic crisis 2008/2009), Sonaca Montreal had to be restructured in 2010 (capital increase by the main shareholder, conversion of financial debts into equity, additional grace period required, etc…)

• As of today, the company Sonaca Montreal is profitable and the financial forecasts 2013 are quite good

EXKI : General presentation

• EXKI was founded in 2000 in Brussels by 3 former managers of GIB (together with the group GIB itself) in order to lauch a new concept in Brussels : the fast casual restaurant using only fresh & natural ingredients

• The 3 brothers Dossche have joined the company shareholding in 2003 and are the major shareholders next to the 3 founders.

• EXKI SA is a profitable company whith a strong financial structure

Exki USA (New York, Manhattan)

- Further to the expansion of EXKI in Europe (Belgium, France, Netherlands, Italy, etc…), the US market (Manhattan in particularly) was chosen after extensive studies for:

– high population density; – growing trend in the “healthy fast-casual” food segment

not yet saturated altough competitors as prêt à manger, le Pain Quotidien, Dishes, etc…are already active on this market;

=> In the 1st step, 3 restaurants will be opened in 2014 in 3 differents type of locations (premium, mix and business location) while the long term objective is to open more than 20 restaurants

Exki USA (New York, Manhattan)

• Preliminary Screening presented to the Board of Directors on February 16th 2012. Approval to further investigate possible commitment of € 1,25 mio under the form of an equity participation at the level of EXKI USA

• The due diligence of the project was done in August 2012• Final approval by the board of SBI on September 2012• First Disbursment expected in December 2013

=> Financial structure of EXKI USA (capitalized at € 5,5 Mio):– SBI/Sofinex will provide an equity participation of € 1,500,000– PMV will also provide an equity participation of € 1,000,000;– EXKI SA will bring € 3,000,000 (via SRIW, SRIB, Triodos bank and the

family Dossche)Exit of the “invests” as from 2019 based on a multiple of the

realised EBITDA’s (via put & call options)

"SBI is the image that we would like Belgium to have in the world: stability, professionalism and pragmatism!" (Pierre Mottet, CEO IBA) http://www.youtube.com/watch?v=rrF2Ryj3-sg&feature=relmfu

"BMI is a financial partner who thinks along with us" (Helena Vandenbeeck, Managing Director SIAT) http://www.youtube.com/watch?v=zQ_eSRchgXU&feature=relmfu

"BMI is an entrepreneurial financial partner" (Dirk De Cuyper, CEO Resilux) http://www.youtube.com/watch?v=pSGwey2a5LI&feature=relmfu

To see and hear the above statements, please visit our company website: http://www.bmi-sbi.be/en/index.html

..and/or click on the you tube movies: http://www.youtube.com/watch?v=m5JJCvaFy_I (long version)http://www.youtube.com/watch?v=Q4TI2UNmY90 (short version)

WHAT OUR CLIENTS SAY ABOUT US

Tervurenlaan 168 b91150 Brussels

Christophe DENIS (Senior Investment Officer) Christophe.denis@bmi-sbi.be

tel: 32 2 776 01 03fax: 32 2 770 66 38www.bmi-sbi.be

QUESTIONS & CONTACT DETAILS