Adamas Finance Asia Limited Investor Presentation 2020 The London - - PowerPoint PPT Presentation

Adamas Finance Asia Limited

Investor Presentation 2020

The London listed company focused on providing shareholders with attractive uncorrelated risk adjusted returns from a diversified portfolio of pan-Asian investments

Disclaimer

2

This Document comprises an institutional presentation (the “Presentation”) which has been prepared by and is the sole responsibility of Adamas Finance Asia Limited (the “Company”). The content of this Presentation has not been approved by an authorised person within the meaning of the Financial Services and Markets Act 2000, as amended (“FSMA”). Reliance on this Presentation for the purpose of engaging in any investment activity may expose an individual to a significant risk of losing all of the property or other assets invested. This Presentation does not constitute or form part of any offer for sale or solicitation of any offer to buy or subscribe for any securities nor shall it or any part of it form the basis of or be relied on in connection with, or act as any inducement to enter into, any contract or commitment whatsoever or constitute an invitation or inducement to engage in investment activity under section 21 of FSMA. Notwithstanding the above, in the United Kingdom, this Presentation is only being given to persons reasonably believed by the Company to be investment professionals within the meaning of paragraph (5) of Article 19 of the FMSA (Financial Promotion) Order 2005 (SI 2005/1529) (“FMSA Order”) or to be high net worth companies or unincorporated associations within the meaning of paragraph (2) of Article 49 of the FMSA Order or to be persons to whom it may otherwise be lawful to distribute it. If you are not such a person (i) you should not have received this Presentation and (ii) please return this Presentation to the Company's registered office as soon as possible and take no other action. By accepting this Presentation the recipient represents and warrants that they are a person who falls within the above description of persons entitled to receive this Presentation. This Presentation and its contents are confidential. It must not be distributed or passed on, directly or indirectly, to any other person or class of persons. This Presentation is being supplied to you solely for your information and may not be reproduced, further distributed or published in whole or in part by any other person and under no circumstances should persons of any other description rely or act upon the contents of this Presentation. No representation or warranty, expressed or implied, is made or given by or on behalf of the Company or any of their respective parent or subsidiary undertakings or the subsidiary undertakings of any such parent undertakings or any of the directors, officers or employees of any such person as to the accuracy, completeness or fairness of the information or opinions contained in this Presentation and no responsibility or liability is accepted by any person for such information or opinions. No person has been authorised to give any information or make any representations other than those contained in this Presentation and, if given and/or made, such information or representations must not be relied upon as having been so authorised. The contents of this Presentation are not to be construed as legal, financial or tax advice. The Company has not been, and will not be, registered under the United States Investment Company Act of 1940, as amended, and investors will not be entitled to the benefits of that Act. Neither this Presentation nor any copy of it may be taken or transmitted into the United States of America or its territories or possessions (the “United States”), or distributed, directly or indirectly, in the United States, or to any U.S Person as defined in Regulation S under the United States Of America Securities Act 1933, as amended, including U.S resident corporations or other entities organised under the laws of the United States or any state thereof or non-U.S branches

• r agencies of such corporations or entities. Neither this Presentation nor any copy of it may be taken or transmitted into or distributed in Canada, Australia, Japan, South Africa or the Republic of Ireland, or any other

jurisdiction which prohibits the same except in compliance with applicable securities laws. Any failure to comply with this restriction may constitute a violation of United States or other national securities law. Information contained in this Presentation may include 'forward-looking statements'. All statements other than statements of historical facts included herein, including, without limitation, those regarding the Company's financial position, business strategy, plans and objectives of management for future operations (including development plans and objectives relating to the Company's business) are forward-looking statements. Such forward-looking statements are based on a number of assumptions regarding the Company's present and future business strategies and the environment in which the Company expects to operate in future. Actual results may vary materially from the results anticipated by these forward-looking statements as a result of a variety of factors. These forward-looking statements speak only as to the date of this Presentation and cannot be relied upon as a guide to future performance. The Company expressly disclaims any obligation or undertaking to disseminate any updates or revisions to any forward-looking statements contained in this Presentation to reflect any changes in its expectations with regard thereto or any change in events, conditions or circumstances on which any statement is based.

Contents & Presentation Team

3

Contents

Page 4 – Company Overview Page 5 – Compelling Investment Case Page 6 - 8 – Recent Updates Page 9 – Key Performance Metrics Page 10 – The COVID-19 Pandemic Effect Page 11 – Differentiation and Added Value Across Three Key Areas Page 12 – Investment Manager Expertise: Harmony Capital Page 13 – Significant Market Opportunity Page 14 – Asian SME Demand for Growth Financing Page 15 – Sourcing: ADAM’s established advantage Page 16 – Our Investment Process Page 17 – Our Growth Sector Focus Page 18 – Our Strategy Page 19 – Structured Protection Page 20 – Our Office and Portfolio Footprint Page 21 - 23 – Our Portfolio - Selected Investments Page 24 – Investment Pipeline Page 25 – ADAM: Competitive Advantages & Outlook Page 26 – Appendix Page 27 – Key Terms Page 28 – Financials Page 29 – Our Portfolio Page 30 – The Board

John Croft

Executive Chairman Adamas Finance Asia

• Experienced director of AIM-quoted companies via executive and

non-executive capacities

• Sector track record working with a number of fast growth

companies in technology and financial services

Suresh Withana

Managing Partner Harmony Capital Investors

• Founder and lead at investment manager
• 25 years’ experience in investing and investment banking
• The past 17 years of which focused on Pan-Asian investments
• Inhouse experience with Bank of America, Merrill Lynch, Mizuho

International Plc and Tikehau Capital

Presentation Team

Company Overview

4

Attractive Income & Capital Growth

Dedicated to delivering attractive income and capital growth for shareholders Rigorous due diligence and disciplined risk management, with downside protection through selectively investing in assets and proactively managing them Provide growth capital and financing to emerging and established Small and Medium Enterprises (SMEs) throughout Asia, well diversified by national geographies, instruments and asset classes

Robust Risk Management Strategy

Sourcing private opportunities with a strong pipeline of income generation, focusing on growth sectors across Asia, including healthcare, fintech, hospitality, IT and property

Growth Sector Focus Track Record

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

Who We Are

London listed company focused on providing shareholders with attractive uncorrelated long term risk adjusted returns from a diversified portfolio of pan-Asian investments The four experienced and independent directors comprising the Company’s Board provide strong governance

Governance

Compelling Investment Case

5

Supportive Majority Shareholder

55% majority shareholder, supportive long-term holder since 2014 and has not sold any shares Future Metal Holdings (44.39% of ADAM’s last reported NAV), a Chinese dolomite quarry, has commenced production.1 In December 2019, the quarry produced 10-20.0k tonnes of dolomite and wall rock and sold these materials during the initial trial run of the plant. The asset is valued at US$44.7m (at 31 December 2019). The Company’s share price is currently trading at a + 60% discount to NAV

Largest Investment Discount to NAV

Over 250 million Asian SMEs with limited access to traditional bank financing, US$2.7 trillion funding gap (IFC), leading to significant opportunities to deploy capital selectively in this vital segment of the economy

Market Opportunity Established Investment Expertise and Networks

The Company's investment manager, Harmony Capital, seeks to capitalise on its team’s established investment expertise and broad networks and offices across Asia, with rigorous diligence and disciplined risk management

Investment Policy

The London listed company focused on providing shareholders with attractive uncorrelated risk adjusted returns over the short and longer term from a diversified portfolio of pan-Asian investments Harmony Capital: established track record of successfully executing and exiting investments throughout market cycles; continuing to create strong pipeline of attractive income generating assets with capital growth potential for shareholders

Established Advantage

1 31 December 2019 NAV

Recent Updates

6

▪ On 21 October 2019, ADAM announced it had successfully raised gross proceeds

• f

approximately US$1.9million through the issuance of a US Dollar-denominated corporate bond to family

• ffices in the Middle East (the "Corporate Bond"), representing the

first close of a corporate bond issuance programme of up to US$10 million. ▪ In May 2020, ADAM successfully secured a second subscription of US$1.7million from high net worth individuals and family offices in the Middle East. The Company has raised a combined total of approximately US$3.6million to date. ▪ This Corporate Bond, which matures in October 2022, has a cash coupon with an interest rate of 12.5% per annum payable semi- annually and is secured with a fixed and floating charge on the corporate assets of the Company. The Company reserves the right to change the terms of any future corporate bond issuance. End-of-Year Financial Results Corporate Bond Issuance ▪ Since 2018, the Company’s Net Asset Value increased by 8% driven mostly by a new investment which was acquired in exchange for the issue of the Company’s shares. ▪ Portfolio income increased by over 500% to US$2.2m year-on-year due to the continued repositioning of the portfolio, a trend that is expected to continue in 2020 as new investments are made and where ADAM expects to monetise some of its older investments. This leaves the Company closer to a point where it can consider a sustainable dividend policy. ▪ Net loss reduced by 21% year-on-year driven largely by a significant increase in Portfolio income which offset operational costs of the business. ▪ The COVID-19 pandemic continues to create global uncertainty, but the Company remains relatively well positioned given its resilient and diversified portfolio and strong liquidity position. In addition, all the Company's investments have business continuity procedures and protocols in place to effectively mitigate the impact of the virus pandemic. ▪ 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 this global pandemic.

Recent Updates

7

Share Buyback

▪ On 23 December 2019, the Company purchased 2,400,000 existing Ordinary Shares of no par value in the capital of the Company at a price of USD 0.21 per Ordinary Share, representing an aggregate purchase price of US$0.5m (the "Share Buyback"). ADAM bought these shares on-market using existing cash reserves aiming to avoid the potential continuation of an on- market overhang which it believes was created recently by the seller of this block. ▪ The Company understands that the selling pressure from this shareholder was driven by non-market considerations and that this purchase comprises the entire holdings of this shareholder. ▪ A portion of these shares will be held in treasury by the Company, whilst an allocation of the remaining shares with a syndicate of third-party investors was successfully completed on 3 March 2020.

▪ On 15 November 2019, Infinity Capital Group became a 15.4% shareholder of the Company via a Share Purchase Agreement completed at a consideration share price

• f

US$0.45 representing a 20% premium to the 30-day weighted average price per share in ADAM.

Infinity Capital Group Shareholding in ADAM

Recent Updates

8

Commencement of Production at Future Metal Holdings Limited

▪ On 27 December 2019, production commenced at ADAM’s core asset, Future Metal Holdings Limited. With the installation of the quarry's processing line, the processing plant’s initial run was successfully conducted, and the first sales contract was entered into with others expected to follow in Q1 2020. Further ramping up of production commenced in the third week of December 2019. ▪ The operation continued until late January 2020 before the Chinese New Year with an estimated total production amount of 15,000 tonnes. ▪ As a result of the restrictions imposed by the local Government in order to contain the COVID-19 pandemic, in February and early March 2020, the

• perations of the quarry were temporarily halted. While this was a legal

requirement, local management had originally planned for limited production in this period due to traditionally adverse winter weather conditions at the beginning of the year. In line with wide-ranging industrial activity in China, the quarry resumed operations in mid-March 2020. The local management team is actively pursuing sales orders from domestic construction companies who have all commenced operations.

76.8 93.6 95.0 93.0 96.7 100.9 100.7 20 40 60 80 100 120 Interim 2017 FY2017 Interim 2018 FY2018 Interim 2019 FY2019 1Q 2020

Key Performance Metrics

9

▪ 2019 NAV increased to US$100.9m (2018: US$93.0m) as a result of the share swap with Infinity TNP. As of 1Q 2020, NAV is US$100.7m with the marginal decrease

• ccurring as a result of an increase in operating expenses incurred at the beginning of

2020. ▪ 2019 Gross income generated from the portfolio increased by over 500% to US$2.2m (2018: US$0.4m), a trend that is expected to continue in 2020 as new investments are made and where the Company expects to monetise some of its older

• investments. This leaves the Company closer to a point where it can consider a

sustainable dividend policy. ▪ Net loss decreased by 21% to US$2.8m (2018: US$3.5m) ▪ A US$0.5m Share Buyback Programme was implemented to improve the liquidity of shares ▪ 2019 Cash of US$4.1m (2018: US$8.8m) ▪ 2019 NAV per share of US$0.95 (2018: US$1.13)

Net Asset Value Gross Portfolio Income

FY2016

+31%

0.1 0.4 1.2 2.2 1 2 3

Interim 2017 FY2017 Interim 2018 FY2018 Interim 2019 FY2019 US$ MM US$ MM

Harmony Capital Appointed Harmony Capital Appointed

▪ In 2020, the Board anticipates that income from the portfolio will continue to increase bringing ADAM nearer to commencing dividend payments. ▪ The Board remains confident in the outlook for the business and of delivering value to ADAM’s shareholders over the short and longer term. ▪ The Company is continuing to monitor closely the impact of COVID-19 and will keep shareholders updated on any material developments that affect the Group as the situation evolves.

The COVID-19 Pandemic Effect

10

Impact of the COVID-19 Pandemic on Current Operations ▪ The Company’s primary focus remains the health, safety and wellbeing of

• ur people and stakeholders, whilst working hard to ensure that the

Company’s financial position remains robust over the long-term and the value of the business and its investment portfolio is protected. ▪ The COVID-19 pandemic continues to create global uncertainty, but the Company remains relatively well positioned given its resilient and diversified portfolio of pan-Asian investments and strong liquidity

• position. The Board draws further comfort from the established

investment expertise and relationships across Asia of Harmony Capital, the Company’s Investment Manager. ▪ Whilst the markets in which the Company’s portfolio companies operate have been affected by the pandemic to varying degrees, many of these countries, including China and Hong Kong, are exhibiting early signs of recovery with the gradual lifting of lock-down measurers. Risk Management and Opportunities ▪ Asian countries generally have benefited from the experiences gained from previous pandemics such as Bird Flu and SARS and this resulted 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 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.

Outlook

Differentiation and Added Value Across Three Key Areas

11

Experienced Robust Risk Management Process Diverse Portfolio and Pipeline of Attractive Investments

▪ Established, value-oriented, income focused pan-Asian SME investor ▪ Senior investment team averages +20 years of relevant experience ▪ Complementary skill sets and deep industry expertise ▪ History of generating excess returns throughout market cycles ▪ Extensive financial structuring experience with significant downside protection from investments ▪ Established ability to successfully execute and exit investments ▪ Investment manager has +6 dedicated employees in operations and risk management ▪ Offices: London, Hong Kong & Singapore, on-the-ground local teams ▪ Supplement traditional risk management with advanced portfolio analytical tools ▪ Proactive rigorous diligence & disciplined risk management processes ▪ Evaluate risk across both portfolio and individual investment/growth capital data ▪ Track growth capital-level performance across life of investment ▪ Portfolio of seven investments across four countries ▪ Proactive and selective sourcing of deals with teams that have the talent, passion and grit to succeed ▪ Non-sponsored, self-originated and primarily private investments ▪ Investments typically structured with over collateralisation and credit enhancements to minimise risk of loss ▪ Well-structured and downside-protected investments

Investment Manager Expertise: Harmony Capital

12

The Company’s investment manager is Harmony Capital, an established private capital manager with offices in London, Hong Kong and Singapore that has a history of generating excess returns throughout market cycles. Through rigorous diligence and disciplined risk management, Harmony Capital is dedicated to delivering attractive income and capital growth for shareholders with significant downside protection through selectively investing in assets and proactively managing them. Since being established by Suresh Withana in 2005, Harmony Capital managed a private pan-Asian focused SME fund for sophisticated investors diversified geographically and including Asian Institutional Investors, North American Pension Plans and Family Offices – the fund invested in middle-market companies in South East Asia, China and Australia. Today, Harmony Capital manages a pan-Asian focused SME fund for its client, London-quoted permanent capital vehicle, Adamas Finance Asia. The fund provides growth capital and financing to SMEs, which are underserved by traditional bank financing and maintains diverse exposure throughout Asian geographies, utilising varied instruments across assorted asset classes. Years of Pan-Asian Investing Experience

17

Harmony Capital c.US$100m Asia Portfolio Harmony Investment Fund I c.US$270m Asia Portfolio 10 Yr Life Positive Returns Mizuho International Plc c.US$450m Global Portfolio 3 Yr Life Positive Returns

Years of Professional Experience

25

Prior to founding Harmony Capital, Mr. Withana worked for Bank of America, Merrill Lynch, Mizuho International Plc and Tikehau Capital

Significant Market Opportunity

13

2 MSME Finance Gap – SME Finance Forum (2017) 3 Estimated number of small and medium-sized enterprises worldwide in 2010, by region – Statista (2018) 4 Trade Finance Gaps, Growth and Jobs Survey – Asian Development Bank (2017)

There is a funding gap of c.US$3 trillion across Asia SMEs2 Traditional institutions restricted for regulatory and structural reasons; SMEs seek growth capital from alternative finance providers Asian SMEs are attractive investments with built in collateral and downside protection There are over 270 million Asian SMEs, making up 98% of Asian companies3,4 Pan-Asian SME’s account for 42% of Asia’s GDP and only receive 18.7% of lending via traditional institutions4

Significant opportunities to invest selectively in high growth SMEs in Asia and proactively manage them

Returns Demand Market Growth Opportunity

Structured Investments

Asian SME Demand for Growth Financing

14

▪ ADAM can invest across the capital structure of SME companies with a strong preference for well-structured and downside- protected investments ▪ As Asian SMEs are increasingly starved of capital, ADAM sees increasing opportunities to negotiate and invest in well structured instruments Enterprise Value US$5m-500m Revenue US$5m-500m Profitability & Cash Flows Positive EBITDA; Manageable CapEx Limited Financing Sources Restricted access to public markets and traditional bank debt Convertible Bonds High Yielding Secured Loans Loans + Warrants Preferred Equity Expansion Capital Acquisition Finance & Buyouts Bridge Finance Re-Finance Rescue Finance Income + Capital Gains Downside Protection Return of Capital Accountability Governance

ADAM SME Target Features

FOR HOW WHY

Sourcing: ADAM’s Established Advantage

15

▪ As an established firm with investment expertise and broad networks and offices across Asia, Harmony Capital has an extensive and deep network of relationships and a robust pipeline in this growing, but fragmented, industry where proprietary relationships are key to gaining access and serve as a powerful filter of opportunities. ▪ Harmony Capital:

• has a disciplined deal origination process that has generated more than 30

qualified investment opportunities across Asia over the last 14 years

• screens potential portfolio companies based on various criteria including

management growth strategy, robust financials and market opportunity

• has extensive reach and ability to meet with management teams, attend

conferences and diligence opportunities

▪ Through Harmony Capital’s local offices, it can originate proprietary transactions and negotiate attractive transaction terms directly with companies, instead of competing in a wide auction process.

Historical Asian SME Investments Current Asian SME Investments

Our Investment Process

16

Harmony Capital follows a multi-phase due diligence process once a potential investment is identified Sector Special Situations Proprietary Access & Origination Sustainable Exclusivity Negotiation Invest

Investment Filter Risk Factors

Healthcare & Life Sciences, Consumer & Retail, Industrials Expansion Capital, Bridge Finance, Re-finance Strong fit and value-adding

• pportunities

Asian SME

Estimated Enterprise Values of US$5m to US$500m Cyclical Sectors Lack of Adequate Security Shopped Opportunities Participating via Third Parties Rushed Timeline Exclusive Opportunities Deal structure and exit evaluation

As a result of Harmony Capital’s thoroughness throughout the due diligence process,

• ver 100 SMEs were analysed in 2019, however, only 2 companies achieved

investment.

Our Growth Sector Focus

17

While ADAM remains sector agonistic, Harmony Capital has identified certain sectors in Asia that continue to be attractive based on experience in those specific sectors and where the team’s knowledge and contacts are deepest

▪ Supply constraints ▪ Government focus on Clean Energy Adamas Finance Asia

Energy and Resources Consumer & Leisure Internet & Technology Education Food and Agriculture Property Healthcare & Life Sciences Industrials

▪ Increased protein consumption ▪ Reduced supply of arable land ▪ Hard asset backing ▪ Assessable income stream ▪ Aging population ▪ Medical tourism ▪ Asia is a global manufacturing hub ▪ Local consumer drives demand ▪ Internet proliferation continues ▪ Fintech disrupting financial sector ▪ Significant share of household spending ▪ Increased demand for private education ▪ Growing middle class ▪ Demand for luxury goods, services and experiences

Our Strategy

18

Our flexible investment policy enables us to evaluate opportunities across a spectrum of complexity

Asian SME Sector

Expansion Capital Acquisition Finance & Buyouts Bridge Finance Re-finance Rescue Finance To rehabilitate good firms in distressed situations To provide re-financing needs To meet short term liquidity needs Typically for inorganic growth Typically for

• rganic growth

Structured Protection

19

Investing across the capital structure of pan-Asian SME companies, with a preference for well-structured and downside-protected investments As Asian SMEs are increasingly starved of capital, we see increasing opportunities to negotiate and invest in structured instruments

Hybrid

Covenants Provide Ability to Influence Security & Downside Protection Income + Capital Gains Amortisation & Early Return of Capital Board/Monitoring Rights

Convertible Bond + Covenants Loan + Warrants/Royalties Secured Loan Preferred Equity + Governance

Structured Instruments

Our Office and Portfolio Footprint

20

Investment Exposure

China Japan Singapore Malaysia Hong Kong Indonesia

Office Location

Key

Vietnam The United Kingdom

Portfolio Diversification

Period Ending 31 December 2019

54.7% 26.2% 2.1% 9.0% 4.0% 3.9% China Hong Kong Singapore Japan Receivable Cash

The Company’s investment portfolio from a valuation perspective has not been materially impacted by the global COVID-19 pandemic and the Board expects this to remain the case in 2020. The markets in which the portfolio companies operate have been affected by the pandemic to varying degrees. However, many of these countries, including China and Hong Kong, are showing early signs of recovery as lock-down measures are being gradually lifted.

Our Portfolio - Selected Investments

21

Infinity Capital Group

A Developer of Premium Residential Projects

2018 ADAM invested in Infinity Capital Group, the developer

• f a high-end development project in Niseko, Japan – a world-

class skiing destination.

An attractive transaction:

✓ Ability to benefit from the rising popularity of winter tourism in Niseko, Japan due to its reputation as a world-class ski destination and its proximity to major Asian cities. ✓ Investment proceeds are secured against significant collateral with a conservative ‘Loan to Value’ ratio. ✓ We believe that the high-end residential developments of Infinity Capital Group will appeal to Asia’s prospering middle class as their propensity to spend on luxury goods and travel increases. This investment provides ADAM exposure to the rapidly growing Asian winter tourism market and further diversifies its portfolio.

Property DocDoc

A Leader in Asian Clinical Informatics & Patient Empowerment 2018 ADAM invested in DocDoc, the leading Pan-Asian virtual network of physicians, clinics and hospitals assisting patients in finding the highest quality of medical care at the best prices

This investment enables ADAM to take a significant step into the growing clinical informatics sector which is disrupting the traditional healthcare landscape.

Healthcare & Life Sciences An attractive transaction:

✓ The company’s Artificial Intelligence (“AI”) powered doctor discovery system enables patients to find their optimum care provider, screening by criteria such as outcome, experience and cost. ✓ Its network of 23,000 doctors, 685 clinics and 108 hospitals across 8 countries in Asia is believed to be the largest of its kind. ✓ Contracts have been signed with leading health insurance providers in China and in Singapore to partner in offering the company’s service to policyholders.

Domicile: Japan Sector: Lodging and Leisure Carrying Value: US$2.1m Governance: Quarterly and Annual Reporting Monthly Interaction with Management Investment Type: Secured Loan + Warrants (Two Tranche Investment) Portfolio Attribution: 2.1% Interest Rate: 17.5% p.a. payable semi-annually in cash Security: 1st Ranking Asset Pledge Target Exit: 2024, Repayment at Maturity Domicile: Singapore Sector: Healthcare Carrying Value: US$2.2m Governance: Board Seat Quarterly and Annual Reporting Investment Type: Convertible Bond Portfolio Attribution: 2.2% Interest Rate: 8.0% PIK Conversion: Not Publicly Disclosed Security: Not Publicly Disclosed Target Exit: IPO, Trade Sale etc.

Our Portfolio - Selected Investments

22

Fook Lam Moon (“FLM”)

A 70 Year Veteran and Leader in Hong Kong’s Food and Beverage Sector

2018 Convertible bond issued to ADAM by a Hong Kong- based high-end food and beverage business with multiple Michelin stars.

An attractive transaction:

✓ ADAM secured the Convertible Bond in FLM in exchange for certain assets of its legacy portfolio. ✓ Fook Lam Moon is engaged in the operation of high-end Chinese restaurants and F&B management. ✓ It is long established as the premier brand for fine Cantonese cuisine in Hong Kong with its 70-year history, renowned both locally and internationally. ✓ This investment is directly in-line with ADAM’s strategy to generate capital gain from exposure to value accretive businesses and investment instruments across Asia. Delivering exposure to exciting high growth businesses in Asia while aiming to provide a secure income yield for ADAM.

Consumer & Retail Future Metal Holdings Limited

Chinese Dolomite Quarry

2014 ADAM is the major shareholder of Future Metal Holdings Limited, which wholly owns a large open pit dolomite quarry (the “Quarry”) in Linfen City, Shanxi Province, China

This investment enables ADAM to participate in the long-term growth of a mineral asset producer in

• ne of world’s largest emerging markets.

Energy and Resources An attractive transaction:

✓ The Quarry is positioned to capture the growth of the magnesium market in China, as dolomite is one

• f the key ingredients in magnesium pyrometallurgy and with a wide range of applications.

✓ The Quarry is strategically located with convenient access points to maximise operational efficiency. ✓ It has successfully renewed its Mining Licence in August 2018. ✓ An onsite team including a quarry manager were appointed by Harmony Capital to oversee operations at the site. In December 2019, the Quarry began production and is forecast to ramp up to full capacity in 2020. Domicile: Hong Kong Sector: Food & Beverage Carrying Value: US$27.5m Governance: Quarterly and Annual Reporting Investment Type: Convertible Bond Portfolio Attribution: 27.3% Interest Rate: 3.0% Cash Payable Quarterly and 2.0% PIK Conversion: Discount Rate Not Publicly Disclosed Security: Negative Pledge Target Exit: IPO, Trade Sale etc. Domicile: China Sector: Metals & Mining Carrying Value: US$44.7m Governance: Quarterly and Annual Reporting Investment Type: Equity and Shareholder Loans Portfolio Attribution: 44.39% Interest Rate: Not Publicly Disclosed Security: Not Publicly Disclosed Target Exit: IPO, Trade Sale etc.

23

Infinity TNP

7 units in a high-end condominium hotel

2019 Share swap with Infinity Capital Group. ADAM gained a 40% interest in Infinity TNP, the structure which holds the units in Tellus Niseko, issuing 16,179,310 shares in ADAM at a 20% premium to the 30-day weighted average price per share in ADAM as consideration.

Consumer & Retail

Domicile: Japan Sector: Leisure and Travel Carrying Value: US$7.3m Governance: Quarterly and Annual Reporting Investment Type: Equity Portfolio Attribution: 7.2% Dividend Yield: Minimum 6.0% Target Exit: N/A

Our Portfolio - Selected Investments

An attractive transaction:

✓ Supplements ADAM’s ability to benefit from the rising popularity of winter tourism borne through the Infinity Capital Group transaction. ✓ The terms of the transaction guarantee a dividend yield of 6.0% and internal analysis projects that the yield will reach +7.0%. ✓ The property, Tellus Niseko, which has been independently valued by Jones Lang LaSalle at US$20.0m. Strategic utilisation of shares swapped at a premium to market value, resulting in the consolidation of ADAM’s rapidly increasing income yield

Investment Pipeline

24 Prospect Sector Geography Use of proceeds Investment Type Interest Rate Target IRR Target Exit Date Exit Strategy

1 Multi-Channel Network Secured Convertible Bond 12-16% 30-40% 2025 IPO/Trade Sale 2 Cloud Computing Secured Convertible Bond 12-16% 20-30% 2024 IPO/Trade Sale 3 P2P Financing Secured Convertible Bond 12-16% 20-30% 2025 Repayment/ IPO/Trade Sale 4 Fintech Secured Convertible Bond 14-18% 25-30% 2025 IPO/Trade Sale 5 E-Commerce Secured Convertible Bond 15-20% 30-40% 2025 IPO/Trade Sale/Refinancing 6 F&B Secured Convertible Bond 12-16% 25-30% 2025 Repayment/ Trade Sale/ Refinancing

Disciplined approach to new investment opportunities in growth sector where Harmony Capital has expertise

Business Expansion across Asia Business Expansion across Asia Working Capital Business Expansion across Asia Domestic Expansion Domestic Expansion South East Asia South East Asia India Hong Kong Japan Singapore

ADAM: Competitive Advantages & Outlook

25

Asian Investing Expertise

• Offices in London, Hong Kong,

Singapore with on the ground local teams

• Expertise investing in private

companies, often unable to access traditional sources of capital

Dedicated Team with Experience

• Cycle-tested team with a mixture
• f buy-side experience
• Over a decade of executing and

manging investments across jurisdictions

Investment Approach

• Provides growth capital with a focus on

capital gain and income generation

• Selectively financing both emerging and

established businesses across various growth sectors across Asia

Strong Risk Management

• Detailed and through due diligence

process undertaken

• Provides proactive management

throughout the life of an investment using data analytics and customised risk tools

Deal Sourcing

• Proprietary relationships with

companies and sell-side brokers

• Extensive reach and ability to meet

with management teams

Single Solution

• Able to execute transactions

across the capital structure

• Can provide exposure to European

and Asian markets through our

• ffices

Appendix

26

• Key Terms
• Financials
• Our Portfolio
• The Board

Key Terms

27

Company Name: Adamas Finance Asia Limited (ADAM.LN) Structure: Permanent Capital Vehicle Market: The London Stock Exchange, Alternative Investment Market Investment Manager: Harmony Capital Investors Limited, with four-year term from May 2017 Total Issued Share Capital 104,912,379 Valuation: Yearly Audited Valuation Independent Board: Comprises of four experienced directors Management Fee: 1.75% of NAV Payable Semi-Annually, plus 20% of Any Year on Year Increase in Audited NAV, subject to High Water Mark and the Hurdle. Payable in cash and shares. Advisors: WH Ireland Limited (Nominated Advisor) Pello Capital Limited (Corporate Broker) Locke Lord (UK) LLP (Legal Advisor) Crowe UK LLP (Auditor) Maitland/AMO (Media and Communications Advisor)

Financials

28

Adamas Finance Asia Limited

Consolidated Statement of Financial Position 31 December 31 December 2019 2018 Audited Audited US$’000 US$’000 Assets Unquoted financial assets at fair value through profit or loss 67,172 55,519 Loans and other receivables 33,720 28,902 Cash and cash equivalents 4,071 8,828 Right of use asset 34

• Total assets

104,997 93,249 Liabilities Other payables and accruals 2,211 201 Current Liabilities Loans and borrowings 1,909

• Total liabilities

4,120 201 Net assets 100,877 93,048 Equity and reserves Share capital 145,027 134,054 Treasury share reserve (671)

• Share based payment reserve

2,936 2,555 Accumulated losses (46,415) (43,561) Total equity and reserves attributable to owners of the parent 100,877 93,048

• No. of shares

104,912 82,465 NAV per share (US$) 0.95 1.13

12.7 44.7 27.5 7.3 4.1 2.1 2.2

NAV US$100.9m

Our Portfolio

29

An AIM-quoted company targeting delivery of income and capital gain from a diversified mix of pan-Asian investments in the SME Sector

Infinity Capital Group (“ICG”) – A senior secured loan investment in a real estate developer of luxury residential properties in one of Asia’s premier ski destination – Niseko, Japan. DocDoc – In March 2018, ADAM invested in DocDoc, a leading pan-Asian virtual network of physicians, clinics and hospitals assisting patients in finding the highest quality of medical care at the best prices. Future Metal Holdings – ADAM is the majority shareholder of Future Metal Holdings, which wholly owns the largest magnesium dolomite quarry in Shanxi Province, China. Legacy Investments – ADAM’s Legacy Investments include our Limited Partnership Interest in the Greater China Credit Fund, a loan to Jinhongbang Real Estate Development Co. Ltd, and our investment in Meize Energy Industrial Holdings. Fook Lam Moon – A convertible bond issued to ADAM by a high-end Hong Kong-based food and beverage business.

Future Metal Holdings Fook Lam Moon Legacy Investments Cash DocDoc ICG 31 December 2019 Infinity TNP

Infinity TNP – In November 2019, ADAM acquired a 40% holding in Infinity TNP, a wholly owned subsidiary of ICG, containing 7 units in a luxury hotel condominium being built by ICG, Tellus Niseko.

The diagram shows investments and cash only

The Board

30

John Croft Executive Chairman Hugh Trenchard Non-executive Director Stuart Crocker Non-executive Director

• Dr. Lee George Lam

Non-executive Director John Croft is an experienced director of AIM-quoted companies and has previously worked in executive and non-executive capacities with a number of fast growth companies in the technology and financial services sectors. Hugh Trenchard began his career at Kleinwort Benson in 1973 and has more than 40 years' experience in investment banking, including 35 years of involvement with Japan and 12 of them as a resident. Stuart Crocker started his career in banking at Merrill Lynch after leaving the British Army in 1985. He is a Founding Member of the English Business Council in Dubai where he currently resides.

• Dr. Lee George Lam is the Chairman of Hong Kong Cyberport Management Company Limited and the Non-Executive

Chairman of Macquarie Bank’s Infrastructure and Real Assets business in the Hong Kong and ASEAN region.