Jade Road Investments : Corporate Presentation

JADE ROAD INVESTMENTS

Investor Presentation 2021

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C O N T E N T S A N D P R E S E N TAT I O N T E A M

P A G E 0 3	C O M P A N Y O V E R V I E W
P A G E 0 4	R E C E N T U P D A T E S
P A G E 0 5	T H E C O V I D - 1 9 P A N D E M I C E F F E C T
P A G E 0 6	S I G N I F I C A N T M A R K E T O P P O R T U N I T Y
P A G E 0 7	A S I A N S M E D E M A N D F O R G R O W T H F I N A N C I N G
P A G E 0 8	H A R M O N Y C A P I T A L - T H E I N V E S T M E N T M A N A G E R
P A G E 0 9	D I F F E R E N T I A T I O N & A D D E D V A L U E A C R O S S F O U R K E Y A R E A S
P A G E 1 0	C O M P E T I T I V E & G E O G R A P H I C A L A D V A N T A G E S
P A G E 1 1	O U R G R O W T H S E C T O R F O C U S
P A G E 1 2	O U R I N V E S T M E N T P R O C E S S
P A G E 1 3	O U R S T R A T E G Y & B U I L T - I N S T R U C T U R E D P R O T E C T I O N
P A G E 1 4	P O R T F O L I O O V E R V I E W - K E Y A S S E T S
P A G E 1 5	A P P E N D I X C O N T E N T S
P A G E 1 6	J A D E R O A D B O A R D
P A G E 1 7	K E Y T E R M S
P A G E 1 8	F I N A N C I A L S
P A G E 1 9	D I S C L A I M E R

Presentation Team

John Croft

Executive Chairman

Jade Road Investments

• Experienced director of AIM-quoted companies via executive and non- executive capacities
• Sector track record working with several fast growth companies in technology and financial services

Suresh Withana

Investment Manager

Jade Road Investments

• Founder and Managing Partner of Harmony Capital Partners
• 25 years' experience in investing and investment banking
• 17 years' of Pan-Asian investment experience
• Inhouse experience with Bank of America, Merrill Lynch, Mizuho International Plc and Tikehau Capital

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C O M PA N Y O V E RV I EW

Who We Are

Strategy

Robust Risk Management

Track Record

Governance

Established Investment

Expertise, Network &

Advantage

Supportive Majority

Shareholder

London quoted company focused on providing shareholders with attractive uncorrelated long-term risk adjusted

returns from a diversified portfolio of pan-Asian investments.

Stemming from our growth sector focus, we provide growth capital and financing to emerging and established Small

and Medium Enterprises (SMEs) throughout Asia, which is experiencing a US$2.7 trillion funding gap (IFC).

Rigorous due diligence and disciplined risk management, with downside protection through selectively investing in

assets and proactively managing them.

Harmony Capital, the investment manager, has an established tracked record of generating excess returns throughout

market cycles across the globe for the past 20+ years, with a focus on Asian special situations for 17+ years.

The five experienced directors comprising the Company's Board provide strong governance.

The Company's investment manager, Harmony Capital, seeks to capitalise on its team's established investment

expertise, broad networks and offices across Asia. The Harmony Capital team also have an established track record of

successfully executing and exiting investments through market cycles

48% major shareholder, supportive long-term holder since 2014.

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R E C E N T U P D AT E S

	News	Date		Additional Information
			▪ JADE delivered a very positive financial performance for the year 2020 with Net Asset Value (NAV) rising 5.5% from US$100.9m to
	FYE (2020) Annual Results	June-21		US$106.4m, during an unprecedented year.
			▪ Net Portfolio Income grew by over 200% from US$2.2m to US$6.7m delivering a Net Profit of US$1.6m.
			▪ JADE's investments have delivered a resilient performance and remain structured for long-term growth.
			▪ Meize Energy Holding Limited featured in a news story on ChannelNewsAsia ("CNA"), a leading English language news agency based
	Renewable Energy Asset			in Singapore. CNA reported that China generated the largest-ever wind power capacity last year.
	Apr-21	▪	Meize Energy is set to benefit from this continued push for renewable energy in China and Jade Road is proud to support the growth of
	Update
			Meize Energy, as it takes part in the global effort to mobilise private and public sector finances to drive the net-zero transition and to
				support China's roadmap to carbon neutrality by 2060.
	Rebrand to Jade Road		▪ The new name better reflects JADE's Asian heritage, while acknowledging the spirit of connecting investors and capital from the West,
	Jan-21		across the Middle East and into the Asian small- and medium-sized markets.
	Investments Ltd
		▪ In China, Jade is the symbol of balance and strength and known to protect and bring harmony.
			▪	In December 2020 JADE announced the appointment of PKF Littlejohn LLP as its new auditor following 10 years of service from
	Change of Auditor	Dec-20		Crowe LLP.
			▪ This change continues JADE's strong level of corporate governance and an appropriate degree of independence of its auditor.
	New Non-Executive		▪ He is the Co-Lead of Asia and Head of the Corporate Finance & Restructuring segment in Asia as FTI Consulting.
	Aug-20	▪	Mr Batchelor represents Jade Road's largest shareholder on the Board.
	Director
		▪	A new Non-Executive Director, John Batchelor, joined Jade Road's Board with effect from 14th August 2020.

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T H E C O V I D - 1 9 PA N D E M I C E F F E C T

Impact of the Covid-19 Pandemic on Current Operations

• The Company's portfolio has remained resilient in the face of the headwinds created by COVID-19, with underlying valuations being mostly unaffected. The Company is confident in its current valuations moving forward, mainly because Jade Road's investments are consistently structured with downside protection, as well as their diversified nature; moreover, their location in a region which has learned well from previous outbreaks and has been reopening and recovering well.
• Many of the companies that comprise Jade Road's investment portfolio were in some way affected during the first half of 2020 by COVID-19, either by lower-than- expected income or delays resulting from lockdown situations in different countries. Jade Road's investee companies have reacted to protect their businesses by lowering costs and taking measures to diversify revenue sources where possible.

Risk Management and Opportunities

• Asian countries have generally benefitted from the experiences gained from previous pandemics such as Bird Flu and SARS, resulting in far quicker changes to behaviours and travel restrictions than was the case in the West.
• All the Company's investments have business continuity procedures and protocols in place to effectively mitigate the impact of the virus pandemic. Harmony Capital continues to be in constant communication with all of its portfolio companies and business partners.
• Through Harmony Capital, the Company is also seeing an increasingly attractive and growing pipeline of investment opportunities in emerging and established small and medium sized enterprises across Asia, which are even more starved of capital, a situation that is accelerating due to the impact of the global pandemic and compounded by reductions in Foreign Direct Investment inflows across the region.

Outlook

• Asia is experiencing a faster COVID-19recovery than other global regions, with Asian countries constituting 8 of the 10 fastest recovering economies. It is, thus, poised to leverage its position and to experience significant sustained growth throughout the next decade.
• The Board remain cautiously optimistic about the outlook for 2021. As travel and other restrictions are gradually lifted, businesses are beginning to get back to more normal levels of activity. For example, restaurants in Hong Kong, including Fook Lam Moon, the Company's second largest investment by value, is operating near to pre- pandemic levels, while in Niseko, Japan (where the Company has property investments) operators are now accepting bookings for the coming winter skiing season.
• The Board remains cautious during the COVID-19 pandemic, but is confident in the outlook for the Company and of delivering value for its shareholders in the medium to long term and will keep shareholders updated on any material developments that affect Jade Road as the situation continues to improve and develop across the globe.

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