Public investor presentation_2q_2021

1. INVESTOR
PRESENTATI
ON
Jun 2021
“
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,
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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.
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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
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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
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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*
804 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
180 MEUR
Contracts
# 26 578
Rated by
Moody’s
Baa1
TCE/TMA**
33.6%
* 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 31.12.2020

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 73 MEUR
217 MEUR 207 MEUR 210 MEUR 225 MEUR
302 MEUR
147 MEUR 182 MEUR
237 MEUR
284 MEUR
360 MEUR
5 MEUR 11 MEUR
22 MEUR
40 MEUR
68 MEUR
2016 2017 2018 2019 2020
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
Modest
growth
MID TERM
TENDENCIES
Land fund
Portfolios
443 MEUR 454 MEUR 496 MEUR 560 MEUR 851 MEUR
Total 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) 33.6%
 Liquidity ratio > 250%
SOLID FINANCIAL
METRICS
 Improving operational efficiency
TRACK 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
+30% YOY
PORTFOLIO
+69% YOY
New transactions in 2020
+18% growth in 2020 (mostly Housing and Energy efficiency
guarantees)
INDIVIDUALS
Fastest growing segment in 2020 +47%, largest segment - 44% of the
portfolio, 62% of the new volumes (mostly corporate guarantees and
investment loans)
SME and Midcaps
+26% growth in 2020, segment with historical sentiment (mostly loans
and Land fund activities)
AGRICULTURE
74 107 139 164
120
141
167
209
204
220
243
357
64
61
69
73
0
100
200
300
400
500
600
700
800
900
2017 2018 2019 2020
Portfolio,
in million euros
25 39 44 42
29
37 41 66
70
83
94
196
3
4
9
14
0
50
100
150
200
250
300
350
2017 2018 2019 2020
Volumes,
in million euros

12. SME and
MidCap
Agriculture[CEL
LRANGE]
Individuals Financial…
Loans
168
Guarantees
173
Export credit…
Loans
126
Guarantees
15
Land fund
68
Guarantees
156
Loans
8
Venture capital
73
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
804
MEUR
Data as of 31.12.2020, 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
Fast and efficient for small size
companies
Amount max 250 TEUR
Up to 50% of loan
Cap rate at 20%, 5 MEUR per
bank
ECL calculation up-front
State funding to cover credit
risk 25 MEUR
Up to 50% of loan
ECL calculation up-front
State funding to cover credit risk
25 MEUR for SME and Midcap
State funding to cover credit risk
20 MEUR for large exporting
companies
Guarantee volume
240 MEUR for SME and Midcap, 80 MEUR large
companies
Loans volume
200 MEUR
Amount max 1 MEUR
ECL calculation up-front
State funding to cover credit
risk 50 MEUR
ECL – expected credit loss
Guarantees to large
exporting companies NEW
AIF “Altum capital fund”
NEW
Credit guarantee to SME
and Midcap
NEW
AIF “Altum capital fund”
committed capital was
fully subscribed reaching
100 MEUR
State funding to cover credit
risk 25 MEUR

14.  Acting in a responsible way towards the health of employees and customers and
following the recommendations of the responsible institutions on actions that
would help reduce the risks of virus spread, from 13 March 2020 ALTUM
continues to provide all services remotely via the customer portal
mans.altum.lv, as well as through telephone and video consultations, thus
ensuring continuous access to the services provided by ALTUM.
 No substantial negative effect upon liquidity is expected
 Might be delay in timing for originally planned exits in VC funds for 2021
 Centralised guidance from ECB on ready-made macroeconomic scenarios
ALTUM would apply in ECL calculations and SICR* assessment
 To ensure wider availability of loans up to EUR 150 thousand for the Covid-19
crisis-related solutions, in June 2020, the EIF approved financing for ALTUM in
response to its application to the EIF COSME loan guarantee facility, which
provides guarantees up to 80% of the loan amount for loans issued by ALTUM.
The impact of COVID-19 on ALTUM
* SICR – significant increase in credit risk

15. Latvian Land Fund
9.4
M EUR 8.1
M EUR
1.4
M EUR
36
M EUR
13.4
M EUR
KURZEME
RIGA DIST.
VIDZEME
ZEMGALE
LATGALE
4 301
ha
3 093
ha
3 932
ha
7 754
ha
1 040
ha
Portfolio 68.3 MEUR
20 120 ha
Volumes
2020
28.2 MEUR
Data as of 31.12.2020

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.  «25k project» Phase 2 –
streamline of workflow process
in back office - completed in
Febr. 2020. Fully redrafted loan
assessment process and
application review capacity
substantially ↑
 Having «25K project» the new
loan assessment operational
process is ready to use for
Covid-19 loan assessment
process for speed and quality
 «25k project» fully completed in
Febr 2020. Regional capacity
restructured. Channel ready for
Covid-19 products
 Increased capacity of regional
centers – average amount
issued in regional centers
increased to 80 TEUR in 2020 vs
71.4 TEUR in 2019
 Remote application process for
Covid-19 guarantees / export
credit guarantees.
Improving operational efficiency
1… 11.6 11.3 11.6 14.6
2 2 3 1 1
2.2
8.7
4.1
8.1
5.5
2,016 2,017 2,018 2,019 2,020
Interest income attributed to Public funding Net interest Profit
Net Income and Profit Dynamic
in
million
EUR
434
463
529
617
804
3% 2% 2%
1% 1%
0%
1%
2%
3%
4%
5%
6%
7%
8%
9%
10%
0
200
400
600
800
2016 2017 2018 2019 2020
Financial Instruments Portfolio Year overheads vs portfolio
in
million
EUR
Portfolio vs Overheads

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. Debt structure
 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
 Most of borrowings are of medium or long term (from 5 to 15 years and beyond)
13
3
16
53
65
4
47
169
10
63
73
27
27
90
52
142
Loans from International Financial
Institutions
Bond issued
Loans from State Treasury and Rural
Support Service
EU structural funds and State budget
Total liabilities
Funding maturity profile by type of funding source
in million euros, as at 31.12.2020

20. Bonds issued by the
Republic of Latvia…
Cash at Banks
(A1-A3)…
Cash at Banks
(Aa1-Aa3)…
Cash at Banks
(Baa1-Baa3)…
Cash at Banks (Ba1-
Ba3)…
Cash at State Treasury
336
Liqudity portfolio in million EUR
31.12.2020
 High liquidity ratio – 464%*
 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 (31.12.2020: 62
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
In
thousand
of
EUR
8.9% 8.7% 8.9% 8.4% 6.2%
13%
11%
8% 6%
3%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
0
50,000
100,000
150,000
200,000
250,000
300,000
350,000
2016 2017 2018 2019 2020
Loan portfolio
Ratio of provisions to portfolio (%)
Ratio of past due over 90 days loans (%)
17%
15%
8%

24. Qualitative assessment of loan portfolio
In
thousand
of
EUR
12.3% 9.2% 10.2% 10.8% 8.7%
0
50,000
100,000
150,000
200,000
250,000
300,000
350,000
2016 2017 2018 2019 2020
Guarantees
Ratio of provisions to guarantees (%)
Guarantees (Stage 1)
96%
2.7% 2.5%
97%
97%
1.7%

25. 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

26. Key Financial data (TEUR) 2020 2019 2018 2017
Net interest income * 14,572 11,569 11,302 11,602
Profit for the period 5,539 8,131 4,092 8,709
Cost to income Ratio (CIR) ** 47.5% 52.6% 74.8% 50.3%
Employees 211 203 222 230
Total assets 850,704 560,061 495,939 453,668
Tangible Common Equity(TCE)/Tangible Managed Assets
(TMA)
33.6% 29.4% 31.7% 35.1%
Equity 382,594 232,738 221,590 222,848
Total risk coverage: 180,205 87,456 77,815 67,593
- Risk coverage reserve 112,567 99,778 85,276 62,651
- Risk coverage reserve used for provisions -28,197 -27,829 -19,268 -4,753
- Portfolio loss reserve within Reserves (specific reserve
capital)
102,264 15,507 11,807 9,695
- Portfolio loss reserve used to compensate provisions in
the distribution of annual profit
-6,429 - - -
Liquidity Ratio 180 days 464% 582% 227% 482%
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.

27. Financial instruments (gross value), TEUR 2020 2019 2018 2017
Outstanding (by financial instrument)
Loans (excluding sales and leaseback transactions) 302,481 225,144 210,208 207,065
Guarantees 359,605 284,232 236,895 182,376
Venture capital funds 73,165 68,331 59,698 62,299
Land Fund, of which: 68,258 39,634 21,717 11,328
- sales and leaseback transactions 31,500 15,268 6,923 520
- investment properties 36,758 24,366 14,794 10,808
Total 803,509 617,341 528,518 463,068
Number of contracts 26,578 22,437 18,603 14,655
Volumes granted (by financial instrument)
Loans 138,238 64,320 59,608 51,349
Guarantees 137,425 98,240 88,765 68,615
Venture capital funds 14,014 9,022 4,149 2,638
Land Fund, of which: 28,191 16,384 10,823 6,359
- sales and leaseback transactions 16,796 7,239 6,835 520
- investment properties 11,395 9,145 3,988 5,839
Total 317,868 187,966 163,345 128,961
Number of contracts 6,147 5,559 5,590 4,839
Leverage for raised private funding 114% 142% 162% 185%
Key financial and performance indicators (2)

28. www.altum.lv