ALTUM Public investor presentation 2020

1. INVESTOR
PRESENTATI
ON
April 2020
“
partner and
financial expert
in economic
development
”

2. Disclaimer
This presentation and any materials distributed or made available in connection herewith (collectively, the “presentation”) have been prepared solely for your use and benefit for information
purposes only and are the sole responsibility of Akciju sabiedrība "Attīstības finanšu institūcija ALTUM" (the “Company”), and have not been verified, approved or endorsed by any lead manager,
bookrunner, underwriter or adviser retained by the Company. This presentation do not contain all of the information that is material to an investor. By accessing, downloading, reading or otherwise
making available to yourself any content of the presentation, in whole or in part, you agree to be bound by the following limitations and accept the terms and conditions as set out below.
No information contained in the presentation may be copied, photocopied, duplicated, reproduced, passed on, redistributed, published, exhibited or the contents otherwise divulged, released or
disseminated, directly or indirectly, in whole or in part, in any form by any means and for any purpose.
The presentation does not constitute or form part of, and should not be construed as, an offer, solicitation or invitation to subscribe for, underwrite or otherwise acquire, any securities of the
Company or any member of its group nor should it or any part of it form the basis of, or be relied on in connection with, any contract to purchase or subscribe for any securities of the Company or
any member of its group, nor shall it or any part of it form the basis of or be relied on in connection with any contract or commitment whatsoever. If any such offer or invitation is made, it will be
done pursuant to separate and distinct documentation in the form of a prospectus and any decision to purchase or subscribe for any securities pursuant to such offer or invitation should be made
solely on the basis of such prospectus and not this presentation. Any person considering the purchase of any securities of the Company must inform himself or herself independently before taking
any investment decision. By accessing this presentation the recipient will be deemed to represent that they possess, either individually or through their advisers, sufficient investment expertise to
understand the risks involved in any purchase or sale of any financial instrument or any other information contained herein. This presentation should not be construed as legal, tax, investment or
other advice and any recipient is strongly advised to seek their own independent advice in respect of any related investment, financial, legal, tax, accounting or regulatory considerations.
The presentation has been provided to you solely for your information and background and is subject to amendment. Further, the information in this presentation has been compiled based on
information from a number of sources and reflects prevailing conditions as of its date, which are subject to change. The information in this presentation is subject to verification, completion and
change without notice and the Company is not under any obligation to update or keep current the information contained herein. Accordingly, no representation or warranty, express or implied, is
made or given by or on behalf of the Company or any of their respective members, directors, officers, advisers or employees or any other person as to the accuracy, completeness or fairness of the
information or opinions contained in this presentation, and any reliance you place on such information or opinions will be at your sole risk. Neither the Company nor any of its respective members,
directors, officers, advisers or employees nor any other person accepts any liability whatsoever for any loss howsoever arising, directly or indirectly, from any use of this presentation or its contents
or otherwise arising in connection therewith.
This presentation includes "forward-looking statements," which include all statements other than statements of historical facts, and involve known and unknown risks, uncertainties and other
important factors beyond the Company’s control that could cause the actual results, performance or achievements of the Company to be materially different from future results, performance or
achievements expressed or implied by such forward-looking statements. Such forward-looking statements are based on numerous assumptions regarding the Company’s present and future
business strategies and the environment in which the Company will operate in the future. By their nature, forward-looking statements involve risks and uncertainties because they relate to events
and depend on circumstances that may or may not occur in the future. Accordingly, any reliance you place on such forward-looking statements will be at your sole risk. These forward-looking
statements speak only as at the date as of which they are made. Past performance of the Company cannot be relied on as a guide to future performance. No statement in this presentation is
intended to be a profit forecast.
This presentation is not directed to, or intended for distribution to or use by, any person or entity that is a citizen or resident or located in any locality, state, country or other jurisdiction where such
distribution, publication, availability or use would be contrary to law or regulation or which would require any registration or licensing within such jurisdiction. THIS PRESENTATION IS NOT FOR
PUBLICATION, RELEASE OR DISTRIBUTION, DIRECTLY OR INDIRECTLY, INTO THE UNITED STATES, AUSTRALIA, CANADA OR JAPAN OR ANY OTHER JURISDICTION IN WHICH
SUCH PUBLICATION, RELEASE OR DISTRIBUTION WOULD BE UNLAWFUL. This presentation and the information contained herein are not an offer of securities for sale in the United States.
No securities have been or will be registered under the U.S. Securities Act of 1933, as amended (the “Securities Act”) or with any securities regulatory authority of any state or other jurisdiction of
the United States and securities may not be offered, sold or delivered within the United States except pursuant to an exemption from, or in a transaction not subject to, the registration requirements
of the Securities Act and applicable state securities laws and may only be sold outside of the United States in reliance on Regulation S under the Securities Act and otherwise in compliance with all
applicable laws and regulations in each country or jurisdiction in which any such offer, sale or delivery of securities is made. The Company does not intend to register or to conduct a public offering
of any securities in the United States. This presentation and its contents may not be viewed by persons within the United States (within the meaning of Regulation S under the Securities Act).

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

4. CONTENT:
I. General Information
II. Key Credit Highlights
III. Portfolio overview
IV. Profitability and efficiency
V. Funding and Liquidity
VI. Risk Management
VII. Key Financial and
Performance indicators

5.  100% LV state-owned financial institution,
with shareholders as follows:
OWNERSHIP
ALTUM a strategic engine of Latvia’s economic
development
Ministry of
Economics
30%
Ministry of
Agriculture
30%
Ministry of
Finance
40%
KEY PARAMETERS
 provides access to finance in the areas
prioritized by the government and
implements the state policy in the national
economy
 operates in 5 regional centers 16 consulting
offices in LV
ACTIVITY
Financial
instruments*
617 MEUR
 operates in accordance with a special law
issued by Republic of Latvia Saeima / Law
on Development Financial Institution
UNIQUE STANDING IN THE INDUSTRY
Risk coverage
reserve
88 MEUR
Contracts
# 22 022
Rated by
Moody’s
Baa1
TCE/TMA**
29.4%
* Loans, Guaranties, Venture Capital Funds, Land Fund
**Tangible common equity/Total tangible managed assets, including the outstanding guarantees accounted for in the off-balance sheet
Data as of 31.12.2019

6. Key milestones of ALTUM
LZF
2017
Rating
 On 15 June
2017 Moody`s
assigned to
ALTUM an
investment
grade rating
Baa1with a
stable outlook
2015
Established
 On 15 April 2015
three state owned
companies were
merged into
ALTUM
2015
Land fund
 On 1 July 2015
the Land Fun
administered by
the ALTUM was
put into action
2020
 Design and
implementation of
crisis finical
instruments for
SME and
Midcaps – credit
guarantees and
working capital
loans
2017
First bond issue
 In October 2017
ALTUM issued
EUR 20M bond,
becoming the
first national
development
institution in the
CEE countries
that has issued
the green bonds
Volume of
guarantees
2018
 In Q2 2018 the
volume of
guarantee
portfolio
exceeded the
loan portfolio
Guarantees
exceeded Loan
portfolio
Pillar role

7. 65 MEUR 62 MEUR 60 MEUR 68 MEUR
2016 2017 2018 2019
Land fund
Guarantees
Loans
Venture
Capital
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
MID TERM
TENDENCIES
LOANS
VENTURE CAPITAL
GUARANTEES
LOANS
GUARANTEES
VENTURE CAPITAL
MID TERM
TENDENCIES
Land fund
Portfolios
443 MEUR 454 MEUR 496 MEUR 560 MEURTotal assets

8. CONTENT:
I. General Information
II. Key Credit Highlights
III. Portfolio overview
IV. Profitability and efficiency
V. Funding and Liquidity
VI. Risk Management
VII. Key Financial and
Performance indicators

9. Key Credit Highlights
 Ownership by The Republic of Latvia rated A3/A+/A-
by Moody’s, S&P and Fitch
OWNERSHIP
 Clearly expressed state support - extra credit risk is
covered by the public funding
STATE SUPPORT
 Long-term issuer credit rating Baa1 assigned by
Moody’s, standalone rating upgraded to Baa3
RATING
 Equity ratio (TCE/TMA) 29.4%
 Liquidity ratio 250%+
SOLID FINANCIAL
METRICS
 Improving operational efficiencyTRACK RECORD
 Prudent corporate governance and professional
management team
CORPORATE
GOVERNANCE

10. CONTENT:
I. General Information
II. Key Credit Highlights
III. Portfolio overview
IV. Profitability and efficiency
V. Funding and Liquidity
VI. Risk Management
VII. Key Financial and
Performance indicators

11. MID TERM
TENDENCIES
LOANS
VENTURE CAPITAL
GUARANTEES
Client segments
+16.6% YOYPORTFOLIO
+15.3% YOYNew transactions in 2019
Fastest growing segment – +30% during 2019 (mostly Housing and
Energy efficiency guarantees)
INDIVIDUALS
Largest segment - 40% of the portfolio, 50% of the new volumes
(mostly corporate guarantees and investment loans)
SME and Midcaps
Segment with historical sentiment (mostly loans and Land fund
activities)
AGRICULTURE

12. SME and
MidCap
Agriculture[CEL
LRANGE]
Individuals Financial…
Loans, 104
Guarantees, 135
Export credit guarantees`…
Loans, 108
Guarantees
11
Land fund
38
Guarantees, 129
Loans, 13
Venture capital
68 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, BIF
and BIF 2
• Loans
Financial
intermediaries
• Investment and
working capital loans
• Energy efficiency &
renewables loans
• Loan guarantees
• Export credit
guarantees
SME and
Midcap
617
MEUR
Data as of 31.12.2019, MEUR

13. ALTUM COVID-19 crisis financial instruments
Investment loans
restructure
Individual
Credit guarantee
Portfolio
Credit guarantee
WC loans
NEW
Finance lease
restructure
WC loans, Overdrafts
restructure
WC loans, Overdrafts
NEW
Banks for SME
and Midcap
Fast and efficient for small size
companies
Amount max 250 TEUR
Up to 50% of loan
Cap rate at 20%, 4 MEUR per
bank
ECL calculation up-front
State funding to cover credit
risk 25 MEUR
Amount max 5 MEUR
(in portfolio ave guarantee 230
TEUR)
Up to 50% of loan
ECL calculation up-front
State funding to cover credit
risk 25 MEUR
Volume
240 MEUR
Additional security for
up to 715 MEUR loans
Volume
200 MEUR
Amount max 1 MEUR
ECL calculation up-front
State funding to cover credit
risk 50 MEUR
ECL – expected credit loss

14.  As situation is uncertain we do not consider it practicable to provide a quantitative
estimate of the potential impact
 ALTUM expects that its borrowers would ask for temporary relief in form of
payment deferral, fee waivers, extensions of repayment term
 Centralised guidance from ECB on ready-made macroeconomic scenarios
ALTUM would apply in ECL calculations and SICR assessment
 Despite available crisis products in the market expected SICR*
of underlying
borrower for ordinary guarantees issued leading to higher ECL or guarantee
claim
 No substantial negative effect upon liquidity is expected
 Might be delay in timing for originally planned exits in VC funds for 2020-2021
The impact of COVID-19 on ALTUM
* SICR – significant increase in credit risk

15. Latvian Land Fund
5
M EUR 5.6
M EUR
1.1
M EUR
17.3
M EUR
9.1
M EUR
KURZEME
RIGA DIST.
VIDZEME
ZEMGALE
LATGALE
3 195
ha
1 923
ha
3 058
ha
4 379
ha
858
ha
Portfolio 38.1 MEUR
13 413 ha
Volumes
2019
16.3 MEUR
Data as of 31.12.2019

16. CONTENT:
I. General Information
II. Key Credit Highlights
III. Portfolio overview
IV. Profitability and efficiency
V. Funding and Liquidity
VI. Risk Management
VII. Key Financial and
Performance indicators

17. 434
463
529
617
2.8%
2.3% 2.1%
1.0%
0.%
1.%
2.%
3.%
4.%
5.%
6.%
7.%
8.%
9.%
10.%
0
100
200
300
400
500
600
700
2016 2017 2018 2019
Portfolio Year overheads VS Portfolio
 «25K project». Fully
redrafted loan assessment
process. 35% of the total
number of the issued
reviewed remotely.
Increased capacity of
regional centres – average
amount issued in regional
centres increased to 71.4
TEUR in 2019 vs 40 TEUR
in 2018
 Improvement of IT
infrastructure in 2019
provides simplified and
faster data processing and
information flow and
reduced manual input
Improving operational efficiency
Portfolio vs Overheads
4.9
2.2
8.7
4.1
8.1
2.2
4.0
6.0
4.5
8.1
0
2
4
6
8
2015 2016 2017 2018 2019
Profit dynamics
Profit ALTUM Company
Profit ALTUM Group
inmillionEURinmillionEUR

18. CONTENT:
I. General Information
II. Key Credit Highlights
III. Portfolio overview
IV. Profitability and efficiency
V. Funding and Liquidity
VI. Risk Management
VII. Key Financial and
Performance indicators

19.  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)
19
Debt structure
9
9
21
20
2
19
62
25
7
23
55
55
55
77
31
108
Loans from International Financial
Institutions
Bond issued
Loans from State Treasury and Rural
Support Service
Public funding
Total liabilities
Funding maturity profile by type of funding source
as at 31.12.2019 (in MEUR)
< 1 year 1-5 years 5-10 years 10-15 years > 15 years

20. Bonds issued by
the Republic of
Latvia…
Cash at Banks
(Aa1-Aa3)…
Cash at Banks
(Baa1-Baa3)
24
Cash at Banks
(Ba1-Ba3)
6
Cash at State
Treasury, 138
Liquidity portfolio
as at 31.12.2019, MEUR
 High liquidity ratio – maintained
over 582%*
 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 (23.5 MEUR)
Exceptionally strong liquidity position
* 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)

21. CONTENT:
I. General Information
II. Key Credit Highlights
III. Portfolio overview
IV. Profitability and efficiency
V. Funding and Liquidity
VI. Risk Management
VII. Key Financial and
Performance indicators

22.  New model for calculation of expected credit losses was introduced by the end of
2019 as part of ALTUM’s core system.
 KYC process and client on-boarding is centralized
 Digitalization of loan origination and automatization of workflow processes were
implemented
Enhanced Risk Management

23. Qualitative assessment of loan portfolio
13% 11%
8% 6% 0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
0
50,000
100,000
150,000
200,000
2016 2017 2018 2019
Loan portfolio
Ratio of Past due over 90 days
16%17%
InthousandofEUR

24. CONTENT:
I. General Information
II. Key Credit Highlights
III. Portfolio overview
IV. Profitability and efficiency
V. Funding and Liquidity
VI. Risk Management
VII. Key Financial and
Performance indicators

25. Key Financial data (TEUR) 2019 2018 2017 2016
Net interest income * 11,569 11,302 11,602 11,024
Profit for the period 8,131 4,092 8,709 2,170
Cost to income Ratio (CIR) ** 52.6% 74.8% 50.3% 88.4%
Employees 203 222 230 242
Total assets 560,061 495,939 453,668 443,400
Tangible Common Equity(TCE)/Tangible Managed Assets
(TMA)
29.4% 37.1% 35.1% 36.5%
Equity 232,738 221,590 222,848 210,406
Total risk coverage: 87,456 77,815 67,593 66,508
- Risk coverage reserve 99,778 85,276 62,651 63,636
- Risk coverage reserve used for provisions -27,829 -19,268 -4,753 -4,323
- Portfolio loss reserve within Reserves (specific reserve
capital)
15,507 11,807 9,695 7,195
Liquidity Ratio 180 days 582% 227% 482% 449%
Key financial and performance indicators (1)
* Due to reclassification of fees and commission related to lending activities following the industry practise, excludes fees and commission not related to
lending activities, the comparatives for 2018 have been reclassified with subsequent ratio recalculation.
** Due to reclassification of staff and administrative costs to be compensated as well as respective income on compensation, the comparatives for 2018 have
been reclassified with subsequent ratio recalculation.

26. Financial instruments (gross value), TEUR 2019 2018 2017 2016
Outstanding (by financial instrument)
Loans 240,412 217,131 207,585 217,429
Guarantees 284,232 236,895 182,376 147,175
Venture capital funds 68,331 59,698 62,299 64,785
Total 592,975 513,724 452,260 429,389
Number of contracts 22,022 18,280 14,402 11,449
Volumes granted (by financial instrument)
Loans 71,559 66,443 51,869 59,465
Guarantees 98,240 88,765 68,615 56,109
Venture capital funds 9,022 4,149 2,638 21,356
Total 178,821 159,357 123,122 136,929
Number of contracts 5,466 5,464 4,697 4,461
Leverage for raised private funding 142% 162% 185% 162%
Key financial and performance indicators (2)

27. www.altum.lv