Turquoise Partners April 2017 Since 2005 Has established - PowerPoint PPT Presentation

Turquoise Partners April 2017

Since 2005 � Has established operations with over 110 employees in Tehran and a representative office in London. � Has an extensive international client network. � Is a recognized international brand. � Is a partnership between the management team and foreign investors. � Combines local expertise with Western-educated, experienced management. 2 2

Milestones Since Inception 2006 2011 Launch of Set-up of Turquoise Iran 2015 2012 2016 Sheypoor, a Equity Fund Launch of Butane 2014 Launch of leading (managing Iran’s first Industrial Domestic the 1st EU general 90% of foreign index-linked bond, 1st Turquoise regulated classified portfolio 2010 ETF bond for a dedicated mutual fund is website (IB) investments Acquisition of (Turquoise private sector ranked top Sovereign on the TSE) Firouzeh Asia TSE-30 ETF company (IB) Iran Bond performing fund launched) Brokerage Fund 2010 2005 2012 2017 Turquoise Launch of Co-founded To be launched: 2011 2009 2015 2015 Partners is domestic Sarava Pars the 1st UK listed Acquisition of Advisor on the founded mutual fund (Iran’s first Advisor on the Launch of the 1st investment acquisition of Iran Industrial technology acquisition of holding company EU regulated 40 % of Iran’s Development VC fund) Etebar fund focusing on focusing on the Investment largest Investment Iran, in Iranian E- insurance Company Company (IB) partnership with Commerce (subsequently company (IB) Charlemagne and Consumer turned around sectors Capital with a return of 135% to date) 3 3

Group Development and Current Structure 2012: Seeded Sarava Pars (Iran’s first tech VC fund) 2005: Turquoise Partners founded 2012: European fundraising for Sheypoor, the leading 2006: Turquoise Iran Equity Fund launched (managing 90% of foreign classified site in Iran portfolio investment on the TSE) 2015: Launched first TSE Index-linked ETF 2009: Acquisition of 40% of Iran's 2nd largest insurance company 2015: Acquisition of Etebar Investment Company (advisory) 2015: JV with Charlemagne Capital 2010: Launch of domestic mutual fund 2015: IPO of Lia Manufacturing on Farabourse (OTC) 2010: Acquisition of Firouzeh Asia Brokerage 2016: Launch of the 1st EU regulated dedicated Sovereign 2011: Acquisition of IDIC (a return of 135% to date) Iran Bond Fund 2011: Butane Industrial (first bond issue for a private sector 2017: To be launched: the 1st UK-listed investment holding company) company focusing on the Iranian E-Commerce and Consumer sectors. 4 4

Turquoise Strategy Vision � Enable the global community to access the best growth opportunities in Iran. Mission � Generate superior returns for global investors through international expertise and deep market knowledge of Iran. 5 5

Offices London • Supervisory Board Structuring • Investor Relations • Tehran Operational Management • Investment Research • Investment Committee • • Investment Banking • Private Equity Brokerage • Partner Companies • 6 6

Turquoise in the International Media 7 7

Firouzeh Asia Brokerage Firouzeh Asia Brokerage was acquired by Turquoise Partners in 2011. � Turquoise Partners owns 65% of the brokerage and the other 35% is owned by � AICO, Iran’s second largest insurance company. Firouzeh Asia Brokerage is a member of the Tehran Stock Exchange and also trades � on the Farabourse (OTC). Firouzeh Asia Brokerage provides sales, research and nominee managed accounts � in addition to investment banking services. Firouzeh Asia Brokerage executes equities, corporate debt and is in the process of � being granted a commodities trading license. 8 8

Brokerage Services � Securities Dealing Firouzeh Asia is the only local Iranian brokerage with a � global reach Online trading platform with live market data for all customers Telephone orders Block trades Dedicated trader/trading station for large customers Firouzeh Asia has a presence in four major Iranian � cities: Tehran, Isfahan, Rasht and Yazd Managed Accounts � Investment Advice (institutional clients only) � Capital Market Advisory � Listing and IPO advisory Total trading volume was $379 million over the past � Fixed income securities issuance and placement twelve months Index ETF � Launched Iran’s first index-linked ETF (TSE-30 ILETF) in January 2015 Client Portfolio Management Firouzeh Asia has 800 active customers � 9 9

Firouzeh Asia Brokerage • Our Vision To become the leading Iranian brokerage for foreign investors. To rank amongst the top 10 domestic firms. • Five-Year Strategic Plan To become the leading electronic broker for trading and market data. To expand and diversify our product base to meet client needs (e.g. ETFs, Sector Funds). To expand international activities to remain as the leading broker servicing foreign clients. 10 10

Turquoise Asset Management Turquoise’s foreign mutual fund is the top performing foreign-focused equity fund in � Iran. Over 90% of foreign portfolio investment on the Tehran Stock Exchange is managed � by Turquoise. Turquoise’s domestic fund is the top performing mutual fund over the past twelve � months out of 73 domestic mutual funds in Iran. The domestic fund has outperformed its peers during both bull and bear markets. � The domestic fund reports in Rials and offers daily liquidity. � Turquoise Asset Management adopts a fundamentals-driven approach with an � emphasis on value analysis rather than speculative investments. 11 11

Turquoise Partners Track Record • Turquoise Iran Equity Investment Fund - Performance Overview � Turquoise’s foreign fund was the first foreign-focused equity fund in Iran, managing over 90% of foreign portfolio investment on the Tehran Stock Exchange The foreign fund reports in Euros, although the underlying assets are in rials. � � Turquoise’s domestic fund was the top performer in 2014 out of 100 domestic funds in Iran. � The domestic Fund has outperformed its peers in both bull and bear markets. Monthly Performance (in Euro) Monthly Performance (Net in Euro) 200 140 Mar-17, 186.3 TSE OVERALL INDEX 135 180 TURQUOISE DOMESTIC FUND Index Rebased (in Euro) Index Rebased (in Euro) 160 130 140 125 Mar-17, 142.8 120 120 100 115 CLASS B 29-Mar-17, 121.910 80 110 105 60 CLASS C 29-Mar-17, 127.420 100 40 TSE OVERALL INDEX 29-Mar-17, 122.6 20 95 Rebased to December 2015= 100 Rebased to 31 August 2010= 100 90 0 12 12

Turquoise Partners Track Record • Turquoise Iran Equity Investment Fund - Performance Overview Index Performance Net in Euro 1 M 1 Yr. YTD As of 31 March 2017 Turquoise Fund – Foreign (Class B/C)* 2.9% 4.0% 24.7% TSE Overall -0.2% -9.1% 22.6% * Inception Date: 30 Nov 2015 * Average performance of class B&C Exchange rates as ATG fund rates Annualize Performance Net in Euro 3 Yrs. 5 Yrs. 10 Yrs. As of 31 March 2017 Turquoise Fund – Foreign** 2.0% -3.9% 4.2% Indication of the Turquoise Fund – Domestic*** 14.0% 15.6% NA substitutions: Similar performance to TSE Overall Index -5.4% 3.2% 9.0% MSCI EM despite sanctions and MSCI World 14.8% 14.3% 6.5% devaluation. MSCI EM 10.1% 5.3% 5.0% MSCI FR (Net US$) -1.7% 5.8% -0.6% ** Inception Date: 31 May 2006 *** Inception Date: 15 Aug 2010 13 13

Corporate Restructuring • Iran Industrial Development Investment Company (IDIC) Turquoise Partners, Turquoise Investment managers and individuals affiliated with the � Turquoise Group acquired a controlling minority stake in IDIC in 2011. Turquoise and its affiliates control three out of five board seats. � IDIC is a listed investment company with interests in property, banking, venture capital, � metals and private equity. IDIC is a test case for corporate restructuring in Iran. � The balance sheet was cleaned up, eliminating debt and bad assets. � The portfolio was cut from forty holdings to twelve. � Transparency and timely financial reporting were improved. � IDIC is now one of the 50 most liquid and transparent companies on the TSE. � 14 14

Corporate Restructuring • Iran Industrial Development Investment Company (IDIC) Under Turquoise’s control, IDIC’s Return � on Equity (ROE) increased from an ROE (%) Under new management average of 11.4% in the 3-years prior to 40% the takeover, to 21.4% in the 5-years 35% proceeding the takeover. 34% 30% Additionally, IDIC’s Return on Assets 28% � (ROA) increased from an average of 25% 6.7% in the 3-years prior to the takeover, 23% to 21.4% in the 5-years proceeding. 20% 17% 13% 15% 14% � One of the top 50 listed companies on 11% 13% TSE in terms of liquidity, free float and 10% transparency. 5% 3% � Clean audited accounts for the past few 1% 0% years without any article or clause. Sep-07 Sep-08 Sep-09 Sep-10 Sep-11 Sep-12 Sep-13 Sep-14 Sep-15 Sep-16 15 15

Turquoise Corporate Finance We focus on Mergers and Acquisitions, Capital Raising (including Private Equity) and Debt � Restructuring advisory services. We work with management teams of public and privately owned companies and � entrepreneurs to attract international investors, help to develop their businesses and execute strategic transactions using our experience gained in similar businesses in other countries. � Regulated in the UK by the Financial Conduct Authority through an affiliate. 16 16