Finpro presentation material in Wind Power Opportunities in Latin America seminar, Vaasa 14.02.2013

1. Public Funding Options
for SME Companies
Successful growth in
international markets
Kimmo Aura
Regional Sales Manager, Americas
Finpro ry
Merinova Wind Seminar, Vaasa
14.2.2013

2. Content
• Summary of financial models
• Some financial instruments highlighted
• Finpro in brief and how to use public funding for professional
services.
• Case example
Julkisen rahoituksen vaihtoehtoja / Kimmo Aura
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3. Typical funding needs
• New markets, customers or market channel development
• International business and growth plan
• Market analyzes and defining of value chain
• Raising equity capital
• Funding of the delivery projects and working capital
• Product or service development
• Supply chain development
Julkisen rahoituksen vaihtoehtoja / Kimmo Aura
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4. Financiers’ view
• Public financier
– National interest – what is benefit for Finland ?
• Increase of employment
• Increase of tax payments
• Increase of currency income
• Public image for Finland
• Development aid financier
– Impact for target country
• Increase of know-how
• Increase of employment at target country
• Increase of export
Julkisen rahoituksen vaihtoehtoja / Kimmo Aura
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5. Definition of SME status
• This presentation focuses on SME companies (Small and
Medium size Enterprise)
– Definition of SME company (in EU):
– Headcount <250 and
– Turnover <50 M€ or
– Balance sheet total<43M€ and
– Autonomous company, which means that ownership in large company is
less than 25% (for institutional investor the limit is < 50%).
link
– Link for new definition of SME company in English
Julkisen rahoituksen vaihtoehtoja / Kimmo Aura
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6. Limits for public funding
• Public tendering process
– In general public tendering process is needed, if project value > 30 k€
and public support > 50%
– Public tendering process is done in HILMA-system
• Public procurement law in Finland (Hankintalaki 15 §)
– There is some more detailled tresholds mentioned in public procurement
law (in Finnish or Swedish)
• Company has to be creditworth and financing plan credible
– No open tax invoices, no marks in credit history, positive equity capital
link – Link to Public procurement law (in Finnish)
– Link to tendering process (in Finnish) HILMA
Julkisen rahoituksen vaihtoehtoja / Kimmo Aura
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7. Limits for public funding
• De minimis regulation
– (De minimis = support with minimal impact to competition)
– Public (de minimis type) support shall not exceed 200 k€ over any
rolling period of three fiscal years.
– There is limitations to use de minimis support for Fishing industry
or agricultural industry and there is some limits for transportation
industry as well
– It is not allowed to support direct export or sales, however
preparation of export or preparation of partner search is practically
allowed.
link – Link to regulation of EC comission regarding De minimis aid
Julkisen rahoituksen vaihtoehtoja / Kimmo Aura
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8. Public funding instruments
Preparation funding Yhteishankintakoulutus
max. 15 k€/ 70 % support Development funding ca. 30-130 k€ /70 %
ca. 15–100 k€ / 50 % support support
Project max. value 21400 €
Tekes R&D funding, ca. 20–500 k€ (50 % support) and R&D loan (50-70% of costs)
Tekes De minimis aid max. 100 k€ / 35-50% support
Tekes Young Innovative Enterprises 50 k€ + 250 k€ + 750 k€ / 75 % support
Finpro Growth Market Program, value ca. 19 k€ ca. 50% support
Finpro Go Global Plus Program, value ca. 17.5 k€ ca. 75% support
Finpro export partner group 25–65 % support
Finnpartnership aid 3 yrs max. 200 k€ / 30–70 % support
Nopef project aid 45 k€ / 50 % support
Finnvera loans , guarantees, export guarantees and venture capital
20.6.2012 Julkisen rahoituksen vaihtoehtoja / Kimmo Aura © Finpro 8

9. Venture Capital related links
• VIGO accelerators
– Vigo is an accelerator program for dynamic startups. Vigo grows high
quality internationally-focused companies by connecting promising
startups with experienced entrepreneurs and funding. Link for more info.
• Finnish Industry Investment
– Finnish Industry Investment Ltd is a government-owned investment
company. They promote Finnish business, employment and economic
growth through venture capital and private equity investments. Link for
more info.
• Finnfund
– Finnfund (Finnish Fund for Industrial Cooperation Ltd.) is a Finnish
development finance company that provides long-term risk capital for
private projects in developing countries. Link for more info.
• Sitra
– Sitra’s activities promote and stimulate new business models that aim for
sustainable well-being. As a public fund, they report directly to the Finnish
Parliament. Link for more info.
Julkisen rahoituksen vaihtoehtoja / Kimmo Aura
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10. Venture Capital related links
• Finnvera venture capital investments
– Finnvera's Venture Capital Investments serve as the hub for public early-
stage venture capital investments. Link for more info.
• FIBAN
– FiBAN is a Finnish, non-profit network of private investors that aims to
inspire and increase the amount and quality of private investments made
in early-stage companies. Link for more info.
• Finnish Venture Capital Association (FVCA)
– The goal of FVCA is to develop private equity and venture capital as an
industry and promote the interests of its members in Finland. Link for
more info.
• Business Angels Finland (BAF)
– BAF offers a safe and reliable web-based environment where private
investors, also known as "Business Angels", and capital-seeking
entrepreneurs can meet. Link for more info.
Julkisen rahoituksen vaihtoehtoja / Kimmo Aura
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11. Venture Capital related links
• Nefco
– NEFCO is an international financial institution established by the five
Nordic countries. NEFCO finances investments and projects primarily in
Russia, Ukraine, Estonia, Latvia, Lithuania and Belarus, in order to
generate positive environmental effects of interest to the Nordic region.
Link for more info.
Julkisen rahoituksen vaihtoehtoja / Kimmo Aura
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12. Finnvera
Finnvera offers financing and financing expertise to meet the needs you
might face when planning an enterprise’s internationalisation. Link
Yrityksen Kasvu ja Kansainvälisty- Omistus-
Vienti
perustaminen kehittäminen minen järjestelyt
Pienlaina Vientitakaus
Finnvera-takaus
Kansainvälisty-
mislaina Luottoriskitakuu Finnvera-takaus
Naisyrittäjälaina Investointi- ja Ostajaluotto-
käyttöpääoma- takuu
laina
Pankkiriskitakuu
Pientakaus
Kansainvälisty- Investointi- ja
Kehittämislaina Vastatakuu käyttöpääoma-
mistakaus
laina
Finnvera-takaus
Rahoitustakuu
Investointi- ja Ympäristölaina
Remburssitakuu
käyttöpääoma-
laina Vientisaatava-
Investointitakuu Yrittäjälaina
Suhdanne- takuu
18.2.2013
Yrittäjälaina rahoitus Raaka-ainetakuu

13. Check also
• Yritys-Suomi – Enterprise Finland
– Yritys Suomi - Enterprise Finland is an online service that is available to
its users free of charge. It provides information about the kinds of
assistance available to companies or entrepreneurs for establishing and
developing their business. Link for more info
• Kasvuväylä
– Kasvuväylä ”Growth Track” is a service for companies aiming to grow fast
in international markets. Link for more info (in Finnish)
• Ministry for Foreign Affairs
– The Ministry for Foreign Affairs and the Finnish diplomatic and
consular missions abroad monitor and promote Finland's
economic interests abroad. The geographically wide network of
diplomatic and consular missions abroad, in cooperation with
other EPI actors, provides companies with public services related
to export promotion and internationalisation. Link for more info
Julkisen rahoituksen vaihtoehtoja / Kimmo Aura
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14. ELY-Center funding options
• Valmistelurahoitus (preparation funding):
– Preparation funding helps SMEs to prepare for actual development projects and
to analyze their success potential.
– Development projects outside normal business operations
– Purchasing of expert services, in-house salaries and travel costs
– Link for more info in Finnish
• Yrityksen kehittämisavustus (development funding):
– Granted for long-term projects for enhanced business competitiveness. Potential
targets include investments, other development measures, small business start-
up measures and salaries of new jobs.
– External expert consultation
– Salaries (de minimis)
– Travel costs (de minimis)
– Fair and exhibition costs (de minimis)
– Link for more info in Finnish
• ELY Center Personnel:
– Can be searched from this link.
Julkisen rahoituksen vaihtoehtoja / Kimmo Aura
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15. TEKES funding options
• R&D Funding
– Tekes will fund part of the project's costs. The greater the novelty value of the
innovation and the longer the period before anticipated commercialisation, the larger
an investment Tekes may provide. Link
• De minimis aid
– Encourages SMEs to new business development:
– To develop new products and services, productization, proof-of-concept, piloting and
acquiring knowledge through networking and cooperation
– Support can be used also for business feasibility studies and studies on new
markets, end user needs and internationalization requirements
– The support can cover SME’s own work and services purchased from outside
service providers
• Young Innovative Enterprises - Nuoret innovatiiviset yritykset
– The maximum funding is one million Euros per enterprise. The funding is granted in
phases. Before that, a company may apply preliminary phase funding for planning
the growth activities. Link
• Test your idea or contact
– Test your idea here and find best contact person here
Julkisen rahoituksen vaihtoehtoja / Kimmo Aura
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16. Nopef project support
• Nopef - Nordic Project Fund
– Nopef may participate with up to 40% of the approved
feasibility study costs in connection with international
business set up.
– The loan can be fully or partially converted into a grant, after
the final project report has been approved.
– Nopef target countries and industries in this link.
Julkisen rahoituksen vaihtoehtoja / Kimmo Aura
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17. Finpro
• Finpro Growth Market Program
– Finpro Growth Market Program is an internalization program into growing markets. The program is
targeted for Finnish SMEs. Finpro Growth Market Program supports both fast growth and
managed growth companies in building a systematic business in growing markets. Link for more
info
• Finpro Go Global Plus Program
– Go Global Plus is a training program for Finnish SMEs that want to develop their
internationalization skills and seek for growth from new markets. Go Global Plus trains companies'
shareholders, management and persons responsible for marketing and export. The goal is to give
participants a practical ensemble of skills and know-how to support management and development
of international operations and find the right international opportunities. Programs target markets
are for example North-American, European, Russian and Middle Eastern markets. Go Global Plus
funded by ELY-center with European Social Fund (ESF) funding. Link for more info.
• Finpro Export Partner Groups
– Start exporting quickly with the help of a skillful export manager who has local knowledge, and split
your internationalisation risks with other companies - benefit by having access to local know-how,
reducing your risk. Link for more info
Julkisen rahoituksen vaihtoehtoja / Kimmo Aura
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18. Finnpartnership support
• Business Partnership Support Facility
– The purpose of Business Partnership Support is to
encourage commercial cooperation between
Finnish companies and companies and
organisations in developing countries.
– Business Partnership Support is financial support
for the planning, development and training phases
of projects aiming at establishing commercial
activity in developing countries, or starting value-
added import from developing countries. The
support can be granted to Finnish companies and
other organisations for commercially viable, long-
term activities aimed at economic cooperation in
developing countries.
Link to check the target country support.
2.2.2010 Public funding sources / Kimmo Aura © Finpro 18

19. Finpro in Brief
• Finpro is a globally operating expert
organization which helps Finnish
companies to international success.
• Today Finpro has 370 professionals
who work in 68 offices in almost 50
countries.
• Finpro’s consultants completed 1658
assignments in 2011.
• Finpro’s service offering is a unique
combination of strong industry sector
and target market knowledge, foresight
and expertise in the internationalization
process.
Finpro was founded by Finnish companies in 1919. Today the Association has 550 members: Finnish
companies, the Confederation of Finnish Industries, the Federation of Finnish Enterprises and the
Federation of Finnish Technology Industries. Finpro as a public-private partner belongs to the Ministry of
Employment and the Economy Group and works closely with other operators in Finnish innovation
ecosystem such as ELY-centers, Tekes and Ministry for Foreign Affairs.
18/02/2013 © Finpro 19

20. Finpro’s Global Network
18/02/2013 © Finpro 20

21. Finpro Navigator
Preparing the Planning the Establishing the Improving the
Growth Market Entry Presence Market Position
International
Entry Options Partner Search Sales Accelerator
Growth Plan
Test Drive Sales Channel
Direct Sales Market Monitor
Development
Right Markets Establishing Acquisition
Company Candidate Search
Supplier Evaluation Trend Pulse
Export Partner
Groups

22. Typical financing path for SME company growing
to international markets (Proof of Concept)
Preparing the Planning The Establishing the Improving the
Growth Market Entry Presence Market Position
International
Entry Options Partner Search
Growth Plan
Sales Channel
Test Drive
Development
Right Markets
Phase 1 Preparation funding (ELY)

23. Typical financing path for SME company growing
to international markets (Proof of Concept)
Preparing the Planning The Establishing the Improving the
Growth Market Entry Presence Market Position
International
Entry Options Partner Search
Growth Plan
Sales Channel
Test Drive
Development
Right Markets
Phase 1 Preparation funding (ELY)
Phase 2 Development funding (ELY)

24. Typical financing path for SME company growing
to international markets (Proof of Concept)
Preparing the Planning The Establishing the Improving the
Growth Market Entry Presence Market Position
International
Entry Options Partner Search
Growth Plan
Sales Channel
Test Drive
Development
Right Markets
Phase 1 Preparation funding (ELY)
Phase 2 Development funding (ELY)
Phase 3 Development funding (ELY) for countries defined in phase 2

25. Typical financing path for SME company growing
to international markets (Proof of Concept)
Preparing the Planning The Establishing the Improving the
Growth Market Entry Presence Market Position
International
Entry Options Partner Search
Growth Plan
Sales Channel
Test Drive
Development
Right Markets
Phase 1 Preparation funding (ELY)
Phase 2 Development funding (ELY)
Phase 3 Development funding (ELY) for countries defined in phase 2
Alternatively phases 1-3 Tekes De minimis aid or NIY phase 0 or Finnpartnership aid

27. We appreciate Finpro’s strong
expertise and extensive network,
which gives us wider perspective
to make decisions.
Cooperation has been very
uncomplicated, and we always got
help when we needed. According
to my experience we have made a
very good choice, and cooperation
will continue at least by the same
intensity as it has been so far.
A company from the north of In addition to overall sparring in
Finland with some 30 employees internationalization, we got
set up a branch office in France valuable support from Finpro in
and made a million-euro deal many practicalities. In international
with a world-famous aircraft negotiations the investments are
manufacturer. big and details complicated.
Pekka Hosio, Managing Director,
Champion Door Ltd

28. We appreciate Finpro’s strong
expertise and extensive network,
which gives us wider perspective
to make decisions.
Cooperation has been very
uncomplicated, and we always got
help when we needed. According
to my experience we have made a
very good choice, and cooperation
will continue at least by the same
intensity as it has been so far.
A company from the north of In addition to overall sparring in
Finland with some 30 employees internationalization, we got
set up a branch office in France valuable support from Finpro in
and made a million-euro deal many practicalities. In international
with a world-famous aircraft negotiations the investments are
manufacturer. big and details complicated.
Pekka Hosio, Managing Director,
Champion Door Ltd

29. We appreciate Finpro’s strong
expertise and extensive network,
which gives us wider perspective
to make decisions.
Cooperation has been very
uncomplicated, and we always got
help when we needed. According
to my experience we have made a
very good choice, and cooperation
will continue at least by the same
intensity as it has been so far.
A company from the north of In addition to overall sparring in
Finland with some 30 employees internationalization, we got
set up a branch office in France valuable support from Finpro in
and made a million-euro deal many practicalities. In international
with a world-famous aircraft negotiations the investments are
manufacturer. big and details complicated.
Pekka Hosio, Managing Director,
Champion Door Ltd

30. We appreciate Finpro’s strong
expertise and extensive network,
which gives us wider perspective
to make decisions.
Cooperation has been very
uncomplicated, and we always got
help when we needed. According
to my experience we have made a
very good choice, and cooperation
will continue at least by the same
intensity as it has been so far.
A company from the north of In addition to overall sparring in
Finland with some 30 employees internationalization, we got
set up a branch office in France valuable support from Finpro in
and made a million-euro deal many practicalities. In international
with a world-famous aircraft negotiations the investments are
manufacturer. big and details complicated.
Pekka Hosio, Managing Director,
Champion Door Ltd

31. Champion Door Ltd. was established in 1974.
Company is one of the leading manufacturers of large
industrial doors in Finland, e.g. fire doors, smoke
curtains, and other large scale doors for aircraft
hangars, harbors, and energy store-houses etc.
Internationalization of Champion Door started in
1990’s, when the company made first deals to Russia
and later to some European countries.
Champion Door needed help in defining the strategy
and developing their international business plan, which
included a more focused product portfolio and market
selection.

32. Champion Door Ltd. was established in 1974.
Company is one of the leading manufacturers of large
industrial doors in Finland, e.g. fire doors, smoke
curtains, and other large scale doors for aircraft
hangars, harbors, and energy store-houses etc.
Internationalization of Champion Door started in
1990’s, when the company made first deals to Russia
and later to some European countries.
Champion Door needed help in defining the strategy
and developing their international business plan, which
included a more focused product portfolio and market
selection.

33. Finpro supported Champion Door in making the
strategic choice to focus abroad with one product line,
aircraft hangars. Company decided to target the
operations to Central Europe and especially to France,
where the greatest potential was recognized. At first
Finpro made a market study which was later deepened
by more detailed customer research. As a result EADS
group was defined as the most potential client.
With the help of Finpro, Champion Door has created
important contacts and tackled culture differences in
different markets. Three years ago its international
sales was 25%, now export brings in 75% of the
turnover. Its greatest achievement so far is the
EADS/Airbus deal worth over 10 million Euros in the
next three years.

34. Thank You !
More info:
Kimmo Aura
Regional Sales Manager, Americas
Kimmo.aura@finpro.fi
+358 40 504 8317
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