EIF CORPORATE OPERATIONAL PLAN 2011-2013 docx

1 EIF CORPORATE OPERATIONAL PLAN 2011-2013 Important notices: The Corporate Operational Plan 2011-2013 was discussed and approved by the Board of Directors of the European Investment Fund at its meeting of 13 December 2010. Attention is drawn to the fact that data provided on 2010 activity are estimates only which were made prior to the 2010 year-end. This document also contains other forward-looking statements such as projections of financial performance. Such statements and projections may, by their nature, prove to be inaccurate. Data or statements that are confidential and/or financially sensitive in nature have been removed from this publication. 2 Table of Contents Introduc IntroducIntroduc Introduction tiontion tion 3 33 3 1 11 1 Vision, Values and Strategy of EIF Vision, Values and Strategy of EIFVision, Values and Strategy of EIF Vision, Values and Strategy of EIF 4 44 4 2 22 2 2010 Activities 2010 Activities2010 Activities 2010 Activities 6 66 6 3 33 3 Business Environment Business EnvironmentBusiness Environment Business Environment 10 1010 10 4 44 4 Value Added of EIF Operations Value Added of EIF OperationsValue Added of EIF Operations Value Added of EIF Operations 12 1212 12 5 55 5 Business Planning and Operations: 2011 Business Planning and Operations: 2011Business Planning and Operations: 2011 Business Planning and Operations: 2011– –– –2013 20132013 2013 14 1414 14 5.1 Business Development, Strategic Imperatives and Key Action Items 14 5.1.1 Equity Investments 14 5.1.2 Guarantees and Credit Enhancement 21 5.1.3 Microfinance 24 5.1.4 Regional Support and Advisory Business 26 5.1.5 Strategic Product and Mandate Development 28 5.2 Operational Excellence 29 5.2.1 IT development 29 5.2.2 Finance, Risk and Control 29 5.3 Employer of Choice 30 Annex Annex Annex Annex 1 11 1: Acronyms : Acronyms: Acronyms : Acronyms 3 Introduction IntroductionIntroduction Introduction European Investment Fund European Investment FundEuropean Investment Fund European Investment Fund The European Investment Fund (EIF) is the EIB Group’s specialist provider of risk finance to small and medium-sized enterprises (SME) across Europe, delivering a full spectrum of financing solutions for selected intermediaries. It promotes the implementation of Community policies, notably in the fields of entrepreneurship, technology, innovation and regional development. Its unique structure also requires the generation of an appropriate return for its shareholders. The The The The EIB EIB EIB EIB Group Group Group Group The EIB Group consists of the European Investment Bank (EIB) and the European Investment Fund (EIF). The range of products offered within the EIB Group extends from equity to senior loans. The principal area of cooperation between EIB and EIF is support of SMEs. The Group will continue to develop joint risk sharing solutions and to systematically develop joint client relationships. The Corporate Operational Plan The Corporate Operational PlanThe Corporate Operational Plan The Corporate Operational Plan The Corporate Operational Plan (COP) covers the major priorities and activities of EIF including risk management, budget, and staff matters. A separate COP is prepared by the EIB to further detail information relevant to its operations. Executive Summary Executive SummaryExecutive Summary Executive Summary The COP 2011-2013 presents a comprehensive plan to maximise the impact of EIF for the benefit of the SME market in Europe. This will be achieved through an increase of venture and growth capital investment of 40% to EUR 1.3bn in 2011, leveraging over EUR 3.5bn of equity funding. A sharp increase of guarantee volumes is also planned from EUR 611m to EUR 1.3bn (+100%) with a leveraged impact of EUR 7.8bn. The microfinance activity will accelerate to a level of EUR 100m as a result of the Progress fund, again leveraging EUR 230m for this vital sector. EIF will sustain its operating profit in 2011 at EUR 59m despite flat treasury and guarantee income. Costs will rise by 9% reflecting a slow down in recruitment but increased investment in IT. The resultant cost to income ratio of 46% is in line with last year's COP figure for 2011. Weak economies in most of Europe will mean continued challenges for SMEs and a high level of insolvencies. This factor is reflected in the planned exceptional provisions and impairments of EUR 28m in 2011, down from the full year charge for 2010 of EUR 58.1m. Nevertheless, the capital adequacy ratio of EIF will remain strong at 25-30% (under the currently approved methodology) and management is confident to be able to maintain the AAA rating going forward. 4 1 11 1 Vision VisionVision Vision, ,, , Values a Values aValues a Values and Strategy nd Strategynd Strategy nd Strategy of of of of EIF EIF EIF EIF Vision VisionVision Vision “Europe’s leading developer of risk financing for entrepreneurship and innovation” Values ValuesValues Values Excellence * Teamwork * Integrity * Responsibility * Accountability * Customer-driven Medium MediumMedium Medium- -term objectives term objectivesterm objectives term objectives  “Maximise “Maximise “Maximise “Maximise impact on the smar impact on the smarimpact on the smar impact on the smart, sustainable and inclusive growth of medium, t, sustainable and inclusive growth of medium, t, sustainable and inclusive growth of medium, t, sustainable and inclusive growth of medium, small and microenterprise small and microenterprisesmall and microenterprise small and microenterprises ss s in the EU in the EU in the EU in the EU A AA Accessi ccessiccessi ccessio oo on and EFTA n and EFTA n and EFTA n and EFTA C CC Countries ountriesountries ountries” ”” ” o Segment the market in line with the EU 2020 strategy; o Work intensively with the European Commission (EC) on the most effective instruments; o Maximise EIF’s value added and catalytic effect; o Expand the Fund-of-Funds activity through development of relations with a broader range of EU and Accession Member States in order to assist them in developing their risk capital markets; o Mobilize EUR 1.1bn under the JEREMIE Holding Funds; o Work with the EC to adapt the Structural Funds regulation to align it better with the constraints of market based financial instruments, ensuring that convergence funds can be efficiently deployed.  “ ““ “Cornerstone European Grow Cornerstone European GrowCornerstone European Grow Cornerstone European Growth and Venture Capital and catalyse a th and Venture Capital and catalyse a th and Venture Capital and catalyse a th and Venture Capital and catalyse a maximum level of new SME lending maximum level of new SME lendingmaximum level of new SME lending maximum level of new SME lending” ”” ” o Deliver on the renewed EIF Equity and Guarantee strategies to better respond to market needs; o Become the leading investor in Europe in Microfinance over the next three years.  “Leverag LeveragLeverag Leverage own capital and mandator’s risk capacity to catalyse e own capital and mandator’s risk capacity to catalyse e own capital and mandator’s risk capacity to catalyse e own capital and mandator’s risk capacity to catalyse EUR EUREUR EUR 1 11 10 00 0bn bnbn bn to to to to 13bn 13bn13bn 13bn Equity, Mezzanine and Debt Equity, Mezzanine and Debt Equity, Mezzanine and Debt Equity, Mezzanine and Debt annually annuallyannually annually” ”” ” o Optimise the usage of available resources in the circumstances of limited capital and budgetary resources at EU and national levels; o Leverage EUR 10bn by 2011 with a new target of EUR 13bn for the following two years (2012-2013); o Ensure a high catalytic role on all segments of the market (Guarantees and Securitisation, Venture and Growth Capital, Mezzanine) with an increasing role of EIF as cornerstone investor (increased stakes and added value at earlier stage of the transaction).  “ ““ “Generate Generate Generate Generate EUR EUREUR EUR 7 77 70 00 0- -80m 80m80m 80m operating profit at 40 operating profit at 40 operating profit at 40 operating profit at 40 – 45 4545 45% cost to income and % cost to income and % cost to income and % cost to income and at a at a at a at a long run ROE long run ROElong run ROE long run ROE of ofof of 5 55 5 to 6 to 6 to 6 to 6%” %”%” %” o Increase efficiency and staff productivity through investments in IT; 5 o Decentralize budget ownership to give more responsibility to teams; o Implement cost saving measures and specific recommendations in a number of cost lines (travel expenses, consultancy, etc).  “Establish value creating Risk Management “Establish value creating Risk Management“Establish value creating Risk Management “Establish value creating Risk Management – –– – AAA rating” AAA rating”AAA rating” AAA rating” o Manage actively the relationship with all three rating agencies to maintain AAA rating; o Optimise own capital and better assess the balance sheet impact of new volumes of activities; o Enhance continuously stress testing processes and proactive monitoring; o Build further excellence in fund management and administration in order to mitigate operational risk.  “ ““ “Build i Build iBuild i Build integrated, ntegrated, ntegrated, ntegrated, stable, stable, stable, stable, scaleable systems and processes” scaleable systems and processes”scaleable systems and processes” scaleable systems and processes” o Develop the Long-Term Information Strategy; main initiatives include:  Enhance the different systems and, more specifically, the guarantee platform. Development of a tool specific to the microfinance activity;  Leverage the existing infrastructure at EIB Group level, in particular for Group-wide solutions like PeopleSoft, Data-Warehouse and the Collaboration tools.  “ ““ “Promote and enhance an e Promote and enhance an ePromote and enhance an e Promote and enhance an excellent internal and external reputation” xcellent internal and external reputation”xcellent internal and external reputation” xcellent internal and external reputation” o Enhance internal and external communication (intranet fully operational complemented by quarterly all staff meetings; new head of communication recruited); o Manage proactively the relationships with mandators and stakeholders, adhere to EU policy objectives and EIB Group goals; o Develop initiatives towards the goal of being employer of choice. 6 2 22 2 2010 Activities 2010 Activities2010 Activities 2010 Activities A summary of the achievements of the year 2010 are presented below. The financial and business projections are compared to those contained in the COP 2010-2012, as approved by the Board of Directors in December 2009.  Financials FinancialsFinancials Financials EUR m EUR mEUR m EUR m 2009 20092009 2009 COP COPCOP COP Actual ActualActual Actual ∆ COP ∆ COP ∆ COP ∆ COP G&S & Micro G&S & MicroG&S & Micro G&S & Micro Risk fees 38.6 25.2 28.9 3.7 Mgmt fees (0.8) 2.2 3.7 1.5 Equity EquityEquity Equity Equity gains 0.9 2.8 10.9 8.1 Mgmt fees 19.6 22.7 21.9 (0.8) Regional & Advisory 8.1 11.7 11.6 (0.1) Treasury 28.5 32.1 33.3 1.1 Other income 0.3 - 0.6 0.6 Total income Total incomeTotal income Total income 95.1 95.195.1 95.1 96.8 96.896.8 96.8 110.8 110.8110.8 110.8 14.0 14.014.0 14.0 Total expenses Total expensesTotal expenses Total expenses 37.0 37.037.0 37.0 44.4 44.444.4 44.4 45.4 45.445.4 45.4 1.1 1.11.1 1.1 Operating income Operating incomeOperating income Operating income 58.1 58.158.1 58.1 52.4 52.452.4 52.4 65.4 65.465.4 65.4 13.0 13.013.0 13.0 Exceptional items 65.4 46.7 58.1 Net income Net incomeNet income Net income (7.3) (7.3)(7.3) (7.3) 5.7 5.75.7 5.7 7.2 7.27.2 7.2 1.5 1.51.5 1.5 Cost / Income Cost / IncomeCost / Income Cost / Income 38.9% 38.9%38.9% 38.9% 45.9% 45.9%45.9% 45.9% 41.0% 41.0%41.0% 41.0% Cost / Income from Ops * Cost / Income from Ops *Cost / Income from Ops * Cost / Income from Ops * 55.7% 55.7%55.7% 55.7% 68.7% 68.7%68.7% 68.7% 58.6% 58.6%58.6% 58.6% * Total Income - Treasury 2010 20102010 2010 Total 2010 income exceeded the COP target of EUR 96.8m. The risk fees on the own risk guarantees business surpassed the COP forecast of EUR 25.2m, partly as a result of the extension of the maturity dates of a few transactions. However, the portfolio requires a rapid replenishment in order to make this revenue stream sustainable for the years to come. Following a phase in 2009 in which the revenues from equity exits were hit by the limited activity of the IPO and M&A markets, the performance in 2010 has been very positive with global revenue repayments reaching EUR 10.9m. The management fees for both the equity and guarantees business are in line with the COP targets of EUR 22.7m and EUR 2.2m respectively. The EUR 32.1m target on the treasury income was built on a scenario which anticipated higher yields in the second part of the year, which did not fully materialize. Yet, a more active management of the portfolio with the optimisation of the liquidity policy and the exploitation of a few market opportunities helped to close the gap. 7 JEREMIE grew to become a well diversified and predictable income line, with a more balanced structure between fee and cost recovery agreements. Global expenses were slightly higher than the COP forecast of EUR 44.4m, mainly represented by staff and staff-related costs, consultancy and IT projects. As a result of higher than expected revenues, and global expenses in line with the plan, the operating income target of EUR 52.4m was exceeded, with a cost-to-income ratio of 41% (compared to the 46% planned). Further material downgrades have been booked in the last quarter, leading to provisioning for guarantees of about EUR 54m for 2010. Equity impairments amounted to EUR 4.5m at year end.  Client / Client / Client / Client / Business BusinessBusiness Business Volumes Volumes Volumes Volumes EUR m EUR mEUR m EUR m 2009 20092009 2009 COP COPCOP COP Actual ActualActual Actual MFG 160 205 224 Own resources 40 34 47 RCM 365 307 356 CIP 42 80 72 Other mandates 123 124 150 Subtotal SubtotalSubtotal Subtotal 730 730730 730 750 750750 750 848 848848 848 JEREMIE - 121 82 Total TotalTotal Total 730 730730 730 871 871871 871 930 930930 930 Own resources - 400 400400 400 260 260260 260 CIP (budget) 116 100 100100 100 97 9797 97 Subtotal SubtotalSubtotal Subtotal 116 116116 116 500 500500 500 357 357357 357 JEREMIE (FRSP/FLPG) 75 444 444444 444 229 229229 229 Total TotalTotal Total 191 191191 191 944 944944 944 586 586586 586 Joint Group Operations - 75 7575 75 26 2626 26 Progress FMA - - - 1 11 1 Progress FCP - - - - - EPPA - - - 2 22 2 RCM micro 2 12 1212 12 5 55 5 GAGF micro - - - - - Subtotal SubtotalSubtotal Subtotal 2 22 2 12 1212 12 8 88 8 JEREMIE micro - 33 3333 33 - - Total TotalTotal Total 2 22 2 45 4545 45 8 88 8 EQUITYGUARANTEESMICROFINANCE 2010 20102010 2010 In terms of volumes of signatures, 2010 has been a busy year. The COP equity target of EUR 871m was met and exceeded. This represented a significant increase over 2009 and confirmed the crucial role of EIF as countercyclical investor in a market that is still characterised by difficult fundraising conditions. In 2010, as in 2009, across the equity business lines, EIF has maintained a high level of support by backing teams in the early process of their fundraising. 8 For the Guarantees and Securitisation business, 2010 has been another challenging year: the team delivered on both the CIP/SMEG products and the own risk securitisation business, the latter with final signatures of EUR 260m. Only one transaction (by Lloyds bank) had come to the market by August, with the public placement of the most senior notes (EIF guaranteed EUR 60m). In September, EIF issued a new guarantee for EUR 200m for the super senior class of notes backed by SME loans originated by Unicredit AG (Germany), a transaction that would not have taken place without EIF. EIF continued working on the development of risk sharing products and joint EIB Group schemes to extend the product range available to intermediaries in order to stimulate SME financing. At the same time new facilities like the Greater Anatolia Guarantee Facility (GAGF) and the Progress Microfinance Facility (PMF) were signed and started to be deployed. The signature of the PMF marked an important milestone for EIF, adding a third business pillar targeting micro businesses to the range of risk financing products. A new fully dedicated team is already in place and operational. Finally, JEREMIE resources have been deployed according to plan, but with some delays due to slippages to early 2011 or to the longer than expected phase of product development in order to meet the regional market needs. Additionally, EIF has deployed a substantial effort to promote best market practices and support candidate and potential candidate countries to reach a satisfactory level in SME access to finance (inter alia, EIF carried out gap analyses for SMEs financing in Croatia and Western Balkans). Finally, through its local presence, innovative products and investment structures have been put in place, such as GAGF in Turkey and the First Loss Portfolio Guarantee (FLPG) product in various JEREMIE countries. In relation to the CIP mandate and specifically to the GIF window, EIF closed the year a bit short of the planned signature target. Yet, the full budget is foreseen to be utilised by February 2011 1 .  Mandate and Product D Mandate and Product DMandate and Product D Mandate and Product Development evelopmentevelopment evelopment EIF’s activity during 2010 in terms of strategic mandate and product development has been marked by the structuring and implementation of the Progress Microfinance Facility, a complex and innovative mandate that was completed within seven months from approval of the European Commission legal base that established the programme. In this exercise, EIF successfully leveraged its competences in market research, new product development and mandate structuring. The novel implementation framework in the form of a Luxembourg FCP (Fonds Commun de Placement) can become an effective template for replication in future multi-party initiatives. The development of new activities at EIF has received a structured internal framework with the set up of formal mandate and product development procedures and the establishment of a dedicated Steering Committee. Product development has focused on enhancing the design of guarantee and equity products in support of the deployment of the JEREMIE holding funds and of the establishment of new mandates. 1 The table shows the position as of December 2010. 9 EIF has also been intensively involved in the joint discussions with the European Commission and the EIB in relation to the preparation of the EU2020 strategy. In this context, EIF has prepared a 10-year equity strategy and the review of the RCM mandate.  Risk M Risk MRisk M Risk Management anagementanagement anagement & Control & Control & Control & Control Risk management remains a priority for EIF and close monitoring of the portfolio as well as stress testing to better forecast unexpected losses are regularly carried out. The Board is updated on a quarterly basis on the evolution of the exceptional items (equity impairments and guarantee provisions) and a recently enhanced capital allocation model helps to optimize the allocation of resources and the headroom available for investment. As far as audits are concerned, 56 audit points (AAPs) have been closed as of December, and 10 are outstanding (with no high risk AAP). The global closure rate performance stands at 91%, significantly higher than the 60% long term target.  Information and Project Man Information and Project ManInformation and Project Man Information and Project Mana aa agement gementgement gement During 2010 EIF brought forward several projects, in particular: the Long-Term Information Strategy (LTIS), Data Lifecycle Management (DLM) Prototype, EIF Timesheet, New Products IT arrangements. The most important initiatives are related to: (i) technical development /maintenance of key applications (PeopleSoft, eFront, Guarantees); (ii) business process structuring and improvement; (iii) support to operational activities. Twenty-eight projects have been completed in 2010 and ten will continue during 2011.  Employer of C Employer of CEmployer of C Employer of Choice hoicehoice hoice 2010 hiring activity was slightly lower compared to the previous year (30 budgeted posts versus 40 in 2009). This has allowed for a focus on efficiency by limiting the duration of the recruitments (80% completed in the range of the 16 weeks target), tightly monitoring the hiring budget and ensuring high quality of the profiles joining EIF in areas including communication, operations and controls, and securitisation. The three induction sessions held throughout the year enabled new staff to learn about all of EIF’s activities and quickly assimilate to the organisation. Internal mobility both from and to EIB as well as internally at EIF has been a constant matter of attention and provides opportunities to EIF’s growing talents. This has resulted in an increased number of internal career moves. Talent development has continued through an extensive technical skills training programme as well as a continued focus on managerial and leadership development. All staff have been involved in an Individual Development Plan (IDP) at the half year, which gave a base for detailed follow up and for a more systematic career and succession planning process at the year end. EIF Management Committee undertook a 360 degree feedback programme and shared the findings and the improvement plan with their direct reports. 10 3 33 3 Business Enviro Business EnviroBusiness Enviro Business Environment nmentnment nment  General economic outlook General economic outlookGeneral economic outlook General economic outlook The global recovery remains multi-speed, slower for advanced economies and faster for emerging ones. However, following a few months of strong activity in a number of countries, the latest data suggest an overall slowing down of the global recovery, driven mainly by:  The fading effect of inventory restocking;  The progressive withdrawal of the unprecedented stimulus packages – it is not clear if private sector’s consumption will compensate for reduced public spending;  Questions about the commitment of some countries to fiscal consolidation, which is impacting consumer confidence. The outlook remains particularly uncertain, as testified by the diverging views of economists in the austerity vs. stimulus debate. A double-dip recession remains a distinct possibility, although most economists believe a sluggish recovery in the medium term to be a more likely outcome.  Situation of SMEs Situation of SMEsSituation of SMEs Situation of SMEs The global financial crisis heavily impacted the European economy and particularly SMEs in their ability to access finance. SMEs have less recourse to market-based financing than larger firms, and as such are more reliant on bank loans. However, banks appear to remain risk averse when it comes to SMEs: there has not been any significant improvement in banks’ willingness to provide loans, and SMEs have seen no noticeable change in the terms of their loans, unlike larger firms, which have experienced a decline in interest rates. These difficult financing circumstances mean that the market environment remains problematic for SMEs, and bankruptcies are likely to continue to be significant: the Euler Hermes Insolvency Index for the Eurozone is forecast to increase by 6% in 2010.  With regard to EIF’s business lines With regard to EIF’s business linesWith regard to EIF’s business lines With regard to EIF’s business lines  Private Equity Market Private Equity MarketPrivate Equity Market Private Equity Market: European private equity investment activity appears to be picking up from the doldrums of 2009, although it remains a long way off its peak in 2006/7. The improvement is mostly driven by buyout activity, in turn driven by mid-market deals, a sector that had been particularly hit by the drying up of leverage in the immediate aftermath of the financial crisis. Fundraising remains difficult, and has not really shown any significant improvement since it collapsed at the end of 2008. Private equity funds continue to struggle to reach their target size.  Venture Capital Venture CapitalVenture Capital Venture Capital (VC) Market (VC) Market(VC) Market (VC) Market: European venture capital markets have been hit hard by the financial crisis. The fundraising environment for VC funds, which already pre-crisis was challenging, has now become extremely difficult. With many traditional Limited Partners (LPs) having backed out of the VC market and only few positive signs of recovery, much of the early stage fundraising activity is driven and structured around public or semi-public LPs. Quarterly VC fundraising figures increased in Q1 2010 (by about one-fifth, to EUR 1.1bn) but fell back again in Q2 2010 (by more than 60%, to EUR 376m), nearly reaching the Q3 2009 level, the lowest quarterly VC fundraising in 2009. The availability of equity for early stage SMEs which typically do not have access to loan financing, has been reduced significantly and investments in the early stage segment have fallen to very low levels. At the same time this creates extremely [...]... resource planning for this COP: III Maximise the leverage of EIB and EIF capital and investment capacity III In the circumstances of limited capital and budgetary resources at EU and national levels, it is even more important to optimise the use of these resources IV knowledge, coIV Disseminate EIF knowledge, experience and performance and build co-investor relations Develop the resources of EIF to provide... (mainly family offices) are envisaged as major investors By taking 20% of these funds (90% of which is planned from RCM and 10% from EIF) EIF, acting as fund manager, expects to catalyse around EUR 0.7bn for each Fund-of-Funds, bringing a total leverage of approximately 15 times (EUR 80-100m invested by EIF to result in EUR 1.4bn investments to benefit SMEs); A Euro Co-Investment Fund which will provide... order to further fill the market gap and to improve its catalytic effect, EIF risk appetite in the mezzanine tranches will progressively increase, following the expected restoration of a more solid investor base for senior notes EIBJoint EIB -EIF operations The Joint Group operations form a fundamental part of the EIF strategy EIF shall seek to use its guarantees to complement the products offered by... 3.3bn or 10% are being channelled via JEREMIE Holding Funds, of which EIF manages one third Funds JEREMIE Holding Funds In 2010, EIF focus has been mainly on the operational implementation of the existing Holding Funds under JEREMIE With 12 Holding Funds, both in EU regions and new Member States, amounting to EUR 1.2bn under management, EIF has extensively focused on the investment activity, building on... Through the review of the current Risk Capital Mandate, EIF plans to secure additional funding from the EIB This will allow the continuation of EIF s countercyclical role in the stabilisation and development of the European equity markets and the consequent impact on SMEs The new resources shall also serve to incubate new activities as presented in EIF s equity strategy and as preparation for the EU2020... counterparts EIF closely tracks and maps the entire Lower Mid-Market universe spotting existing players as well as new and emerging managers of interest to EIF in the years to come The strategy also seeks to pursue the geographical diversification of the portfolio, with particular support to the development of Central, Eastern and South Eastern European markets as done in recent years RCM /EIF volume... levels by investors The segment addressed by EIF, although affected by the current credit market conditions, continues to be one of the few areas which offer the opportunity to support smart growth companies and to obtain an attractive return The number of funds invested by EIF should remain more or less stable However, fundraising will continue to take time: EIF will commit larger stakes and thus reinforce... - 150 - Total 20 36 88 110 150 80 180 220 300 Expected leveraged volume EIF is increasingly solicited by research centres/universities as well as independent fund managers and corporates in the Technology Transfer and Intellectual Property market segments, also as a result of the business development activities carried out by EIF In particular a number of first generation investments are maturing and... Expected leveraged volume Joint Group Operations 75 of which EIF own risk Own Risk - Credit Enhancement and Securitisation EIF remains a point of reference in the SME securitisation market, with a solid track record, know-how and unique position recognised by originators, investors and regulators In view of the current market conditions, EIF s credit enhancement activity will support market recovery... subordinated loans) * Interest held refers to EIF' s ticket in the fund ** For the equity/mezzanine investments A, B, C scoring is related to the Catalytic Effect section of the Value added scoresheet 13 5 Operation 2011– perations Business Planning and Operations: 2011–2013 5.1 Business Development, Strategic Imperatives and Key Action Items The existing EIF products provide support to a broad spectrum . relationships. The Corporate Operational Plan The Corporate Operational PlanThe Corporate Operational Plan The Corporate Operational Plan The Corporate Operational Plan (COP) covers the. 1 EIF CORPORATE OPERATIONAL PLAN 2011-2013 Important notices: The Corporate Operational Plan 2011-2013 was discussed and approved by. of EIF Operations Value Added of EIF OperationsValue Added of EIF Operations Value Added of EIF Operations 12 1212 12 5 55 5 Business Planning and Operations: 2011 Business Planning