ALTUM is Latvia's development finance institution that provides financing to priority sectors to further Latvia's economic development. It has a diverse portfolio of loans, guarantees, and venture capital investments totaling €496 million. ALTUM has improved its operational efficiency through initiatives like project 25K and maintains strong financial metrics with a 37.1% equity ratio and liquidity ratio over 227%. Going forward, it aims to continue growing its business volumes while prudently managing risks.

1. ALTUM
INVESTOR
PRESENTATION
April 2019

2. Disclaimer
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3. Presenters:
3
Reinis Berzins
Chairman of the Board
Elina Salava
Financial advisor of the Board

4. CONTENT:
I. General Information
II. Business Overview
III. Profitability and efficiency
IV. Funding and Liquidity
V. Risk Management
VI. Key Financial and Performance
indicators

5. I.GENERAL INFORMATION

6. ALTUM a strategic engine of Latvia’s economic
development
 100% state-owned financial institution that provides
access to finance in the areas prioritized by the
government and implements the state policy in the
national economy
 One of a few state owned companies operating in
accordance with a special law issued by the Legislature
of the Republic of Latvia Saeima – Law on
Development Financial Institution
Ministry of
Economics 30%
Ministry of
Agriculture 30%
Shareholders of
Development Finance Institution ALTUM
Ministry of
Finance
40%
We help Latvia grow
MISSION
To be a partner
and financial expert
in economic development
VISION
Team
Excellence
Responsibility
VALUES

7.  Ownership by The Republic of Latvia rated A3/A/A- by Moody’s,
S&P and Fitch
 Clearly expressed state support- extra credit risk is covered by the
public funding
 Long-term issuer credit rating Baa1 assigned by Moody’s,
standalone rating upgraded to baa3
 Solid financial metrics: equity ratio 37.1% and liquidity ratio 227%
 Track record of improving operational efficiency
 Prudent corporate governance and professional management
team
Credit highlights

8.  Solid GDP growth and expected to remain at 3%
 Moderate and slowing inflation
 Unemployment level still relatively high (close to 8%) but on a firm downtrend
 Strong fiscal discipline – the budget deficit does not exceed 1%
Latvia macroecomic figures 2015 2016 2017 2018 2019 2020 2021
Fact Forecast
GDP % 2.7 2.1 4.6 4.2 3.0 3.0 2.9
Inflation % 0.2 0.2 2.9 2.5 2.5 2.2 2.1
Unemployment % 9.9 9.6 8.7 7.7 7.4 7.0 6.8
Budget deficit % of GDP -1.4 0.1 -0.5 -0.5
Government debt % 36.8 40.5 40.1 37.0*
Balance of payments current
account % of GDP
-0.5 1.6 0.7 -1.0
Credit rating
Fitch A- A- A- A-
Moody’s A3 A3 A3 A3
Standart&Poor’s A- A- A- A
Sound macroeconomic fundamentals of Latvia
* Data as of Q3 2018
Sources: Latvian Ministry of Finance http://www.fm.gov.lv/en/s/macroeconomics/main_macroeconomic_indicators
Eurostat https://ec.europa.eu/eurostat/data/database.

9. II.BUSINESS OVERVIEW

10. Business model at glance
 Long-term profitability
 Extra credit risk covered by public funding – Risk coverage
reserve and Portfolio loss reserve
 Guarantees issued by ALTUM have 270 MEUR back-up
guarantee in the Latvian state budget
 No dividend payments by law
Total assets 496 MEUR
Number of outstanding contracts 18,280
Loans
217 MEUR
Guarantees
237 MEUR
VC
60 M
MID TERM
TENDENCIES
LOANS
VENTURE CAPITAL
GUARANTEES
LOANS
GUARANTEES
VENTURE CAPITAL
MID TERM
TENDENCIES

11. SME and…Agriculture[CELL
RANGE]
Individuals
Financial
intermediaries
Loans
90
Guarantees
118
Export credit
guarantees…
Loans
106
Guarantees
12
Land fund
22
Guarantees
95
Loans
13 Venture capital
60
Loans
1
ALTUM portfolio map
• Housing guarantees
• Housing loans
• Housing energy
efficiency guarantees
• Housing energy
efficiency loans
Individuals
• Land purchase loans
• Land fund (Reverse rent
and IP)
• Loan guarantees
• Investment and working
capital loans
Agriculture
• Venture capital funds – 4
generations
• Loans
Financial
intermediaries
• Investment and working
capital loans
• Energy efficiency &
renewables loans
• Loan guarantees
• Export credit guarantees
SME and Midcap
* Data as of 31.12.2018.
SME and
Midcap
Agriculture[
CELLRANGE
]
Individuals
Financial
intermediarie
s
529 MEUR

12. 62 MEUR
60 MEUR
208 MEUR
2016 2017 2018
Guarantees
429 MEUR
(11 449)
452 MEUR
(14 402)
514 MEUR
(18 280)
Loans
Venture capital
Portfolio
(Contracts)
Business trends 2016 – 2018

13. Key drivers for portfolio growth:
 Fastest growing segment - Individuals +25
MEUR guarantees
 SME and MidCap +14 MEUR corporate
guarantees
 Agriculture +16 MEUR land purchase
loans and sales and leaseback
 In 2018 total volumes are 159 MEUR (56% -
guarantees, 42% - loans and 2% -venture capital
investments).
 In 2018 volumes for all segments increased by 40
MEUR comparing to 2017, highest growth
Individuals +58% and Agriculture +51%.
 Financial intermediaries segment stayed low due
to the end of venture capital fund Investment
period. Expected to increase in 2019 when recently
signed Fund management agreements become
effective.
57 74 109
103 109
126
201
204
219
69
65
61
0
100
200
300
400
500
600
2016 2017 2018
MEUR Portfolio
20 25
39
35 22
33
60 70
83
21 3
4
0
20
40
60
80
100
120
140
160
180
2016 2017 2018
MEURVolumes
Financial
intermediaries
SME and Midcap
Agriculture
Individuals
Client segments

14. 14
7
17
36
15
9
21
30
0 10 20 30 40 50 60 70
Acceleration funds
Seed funds
Venture funds
Growth funds
MEUR
Existing - Investment at Cost at y/e 2018
New - Allocated Volume
 Fund managers are selected through the public procurement
process
 Investment decisions are made by professional fund managers
 Ticket size: up to 10% - 15% of the fund volume
Venture capital: New vs Existing

15. III. PROFITABILITY & EFFICIENCY

16.  «25K project». Fully redrafted loan
assessment process. Internal
processes more efficient and
effective. Regional capacity
restructured.
 Installation of new IT infrastructure in
2018 allows to boost business
volume with more efficient
technologies and streamlined
internal processes.
 Steady stable profit
429
452
514
2.9%
2.3% 2.1%
0%
2%
4%
6%
8%
10%
0
100
200
300
400
500
600
2016 2017 2018
MEUR
Portfolio vs Overheads
Portfolio Year overheads VS Portfolio
Improving operational efficiency
* Restated in 2018
4.9
2.2
8.7
4.1
2.2
4.0
6.0*
4.5
0
1
2
3
4
5
6
7
8
9
2015 2016 2017 2018
Profit dynamics
Profit ALTUM Company
Profit ALTUM Group

17. IV.FUNDING & LIQUIDITY

18. According to Cabinet of Ministers Regulations the public financing funds can be prolonged. In
practice, the funds remain on ALTUM balance sheet and are used to finance new programmes
 All borrowings are of medium or long term (from 5 to 10 years and beyond)
* Data as of 31.12.2018.
18
Debt structure
34
9
12
26
15
30
3
50 16
48
0 50 100
EU Structural funds and State budget
Loans from state treasury and Rural Support Service
Bonds issued
Loans from international Financial institutions
Funding maturity profile
< 1 years
1-5 years
5-10 years
10-15 years
>15 years

19.  High liquidity ratio – maintained over 227%*
 Diversified exposure
 Current buffer – in accordance with the
programme rules and agreements with the
State Treasury, ALTUM has unused credit lines
from the State Treasury to finance the support
programmes (~94 MEUR)
* Liquidity ratio: due from other credit institutions and the Treasury with a maturity of up to 1 month and available-
for-sale Investment securities by the amount of the total liabilities maturing within 6 months and total financial
commitments maturing within 6 months (off-balance items).
Bonds issued by
the Republic of
Latvia
51
Cash at Banks
(Aa1-Aa3)
13
Cash at Banks
(Baa1-Baa3)
22
Cash at
Banks
(Ba1-Ba3)…
Cash at State
Treasury
97
Liqudity portfolio MEUR
Exceptionally strong liquidity position

20. V.RISK MANAGEMENT

21.  Implementation of IFRS 9:
- New provisions assessment approach
- Changed scope of NPL
- Provisions presented at gross, including provisions covered by risk coverage
reserve
 AML / CTF / Sanctions risks compliance
- International standards and the best practise standards are ensured
- Risk based approach implemented for clients scoring during their life time at
ALTUM
Enhanced Risk Management

22. Qualitative assessment of loan portfolio

23. VI. KEY FINANCIAL &
PERFORMANCE INDICATORS

24. Key Financial data (TEUR) 2018 2017 2016
Net income from interest, fees and commissions 11,554 11, 602 11,024
Profit for the period 4,092 8,709 2,170
Cost to income Ratio (CIR) 77.1% 50.3% 88.4%
Employees 222 230 242
Total assets 495,939 453,668 443,400
Tangible Common Equity(TCE)/Tangible Managed Assets (TMA) 37.1% 35.1% 36.5%
Equity 221,590 222,848 210,406
Total risk coverage: 77,815 67,593 66,508
- Risk coverage reserve 85,276 62,651 63,636
- Risk coverage reserve used for provisions -19,268 -4,753 -4,323
- Portfolio loss reserve within Reserves (specific reserve capital) 11,807 9,695 7,195
Liquidity Ratio 180 days 227% 482% 449%
Key financial and performance indicators (1)

25. Financial instruments (gross value), TEUR 2018 2017 2016
Outstanding (by financial instrument)
Loans 217,131 207,585 217,429
Guarantees 236,895 182,376 147,175
Venture capital funds 59,698 62,299 64,785
Total 513,724 452,260 429,389
Number of contracts 18,280 14,402 11,449
Volumes granted (by financial instrument)
Loans 66,443 51,869 59,465
Guarantees 88,765 68,615 56,109
Venture capital funds 4,149 2,638 21,356
Total 159,357 123,122 136,929
Number of contracts 5,464 4,697 4,461
Leverage for raised private funding 162% 185% 162%
Key financial and performance indicators (2)

26. APPENDIX

27. Loan portfolio and Risk Coverage
8.9% 8.7% 8.9%
0
10,000
20,000
30,000
40,000
50,000
60,000
70,000
80,000
90,000
100,000
0
50,000
100,000
150,000
200,000
2016 2017 2018
Provisions
Loanportfolio
Loan portfolio, gross % of provisions vs portfolio Provisions covered by risk coverage Altum's share of provisions
TEUR 2016 2017 2018
Loan portfolio, gross 217 429 207 585 217 131
Provisions covered by risk coverage reserve 3 105 2 557 4 951
ALTUM’s share of provisions 16 179 15 438 14 426
Total provisions 19 284 17 995 19 377

28. Guarantees and Risk Coverage
* Includes provisions on «onerous contracts (IAS 37) covered by risk coverage reserve for the period until y/e 2017 of EUR 7.2m disclosed in FS 2018 as a result of IFRS
9 implementation
** As of 2018 provisions measured according to IFRS 9 covers both prior standards - provisions under IAS 9 and IAS 37, comparatives for 2017 and 2016 restated to
see comparable trend
12.3%
10.2%
0
10,000
20,000
30,000
40,000
50,000
60,000
70,000
80,000
90,000
100,000
0
50,000
100,000
150,000
200,000
2016 2017 2018
Provisions
Guarantees
Guarantees, gross Provisions covered by risk coverage reserve (IAS 37)
% of provisions vs portfolio Provisions covered by risk coverage reserve
13.1
13.1%
TEUR 2016 2017 2018
Guarantees, gross 147 174 182 376 236 895
Provisions covered by risk coverage reserve 1 218 9 359* 13 162**
ALTUM’s share of provisions 16 864 14 531 10 982
Total provisions 18 802 23 890 24 144

29.  “Risk coverage, total” is net funding available for coverage of expected credit losses of development
programmes implemented by ALTUM
 Adequate risk coverage for expected credit losses available before launching new programmes or products
 For that purpose, respective portion of public funding is allocated at full or partial extent of total expected credit
losses. After public funding is available, it is assigned either to
• to Specific support program’s reserve capital as part of ALTUM’s reserve capital or
• Accounted separately as provisions for risk coverage “Risk Coverage Reserve” as part of the liabilities
Risk Coverage
TEUR 2016 2017 2018
Risk Coverage, total 66 508 67 593 77 815
Risk Coverage Reserve 63 636 62 651 85 276
Risk Coverage Reserve used for provisions -4 323 -4 753 -19 268
Portfolio Loss reserve within Reserves (specific reserve
capital)
7 195 9 695 11 807

30. www.altum.lv