#1Nigeria Sovereign Investment Authority (NSIA) Presentation to the Governing Council at the National Economic Council Meeting (4th GCM) by Uche Orji Managing Director & Chief Executive Officer 28th June 2018 Confidential Nigeria Sovereign Investment Authority#2Executive Summary Section 1 Executive Summary NSIA Background and Structure Section 2 Section 3 NSIA in Global Context Section 4 Financial Results Section 5 Corporate Governance Section 6 NSIA Funds Overview Section 7 Section 8 Outlook Appendices 2 5 14 19 23 28 46 46 48 48 2 Nigeria Sovereign Investment Authority#3■ Executive Summary Nigeria Sovereign Investment Authority NSIA reported 5th straight year of profitability in all its funds with core profits (excluding FX translation gains) of N26.28 billion ($88 million) for the year. Note that the NSIA operated most of the year with asset under management of mainly $1.25 billion as the additional contribution of $250 million was not received until the third quarter of 2017. Even though total assets under management was about $1.25 billion for the mots part, return on asset was up 6.60% in dollar terms. As the Authority is shifting focus to infrastructure and direct investments in Nigeria, returns will incubate longer and as a consequence, cash available for market driven investments have declined. This is largely the reason for the decline in profit total profits from N46.24 billion in 2016 to N26.28 billion in 2017. Breakdown of returns in 2017 by funds is as follows: Stabilisation Fund (3.05%); Future Generations Fund (8.60%); Nigeria Infrastructure Fund (6.20%). Key Highlights of 2017 for Nigeria Infrastructure Fund are as follows: - The Nigeria Infrastructure Fund (NIF) is implemented through three key pillars; direct investment, co-investments and investment/creation of enabling financial institutions; with the focus being Agriculture, Roads, Power and Healthcare: Direct Investment: Implemented the Presidential Fertilizer Initiative (PFI) in 2017; commenced construction of our first three healthcare projects in Lagos, Kano and Umuahia respectively; continued work on Second Niger Bridge (2NB) project; and, invested in and own 13% of Bridge International Academies Ltd, a network of schools which delivers affordable high-quality primary education to lower-income families; and invested in Babban Gona, an agricultural franchise that empowers smallholder farmers. NSIA also Invested in the Chapel Hill Denham Nigeria Infrastructure Debt Fund ("NIDF"), the first and only domestic currency, listed infrastructure debt fund across Africa. Co-Investments Funds: NSIA/UFF-Old Mutual $200 million agriculture co-investment fund made its first investment in Nasarawa State with the acquisition and expansion of Novum Farms (~$25 million investment). Plans have reached advanced stages for a second investment in citrus farm in Gurara. Two other projects are at planning stages in Edo and Abia States respectively. Enabling Financial Institutions: NSIA in conjunction with GuarantCo (UK) created the Infrastructure Credit Guarantee Company Limited (InfraCredit). This entity enables Pension Funds to invest in Infrastructure. The InfraCredit's first investment in a captive power company (Viathan) resulted in the replacement of short term bank loans with a N10bn 10-year bond subscribed to by pension funds and insurance companies which reduced the interest paid by the investors by over 900bps saving more than N900 million in annual interest. 3#4Nigeria Sovereign Executive Summary Contd. Investment Authority 。 NSIA remains largest shareholder in Nigeria Mortgage Refinance Company (NMRC); third-largest shareholder in Development Bank of Nigeria (DBN) by holding shares for Federal Government in trust and helping drive implementation of Family Homes Fund (FHFL), sponsored by Federal Ministry of Finance; . Future Generations Fund (FGF): 2017 was a strong year for global markets particularly for Emerging markets as they turned in solid performance from the Public Equity Markets. FGF remained evenly apportioned across global public equities, private equity, hedge funds and ‘other diversifiers' (which are investments designed to reduce correlation with other asset classes). From a performance stand point, the Future Generations Fund was up 8.60% for the year. Stabilization Funds (SF): The Authority maintained the liquidity and capital preservation objectives of the SF in line with the fund mandate. At year-end 2017, returns under SF was up by 3.057% as the fund was fully invested. Outlook: 2018 started off in a challenging manner. Global markets are poor as trade war between China and USA and geopolitical concerns are weighing on the markets. We are still profitable but at a much reduced run rate. Most of our peers are negative for the year. Presidential Infrastructure Development Fund (PIDF): We have commenced the implementation of the PIDF project which aims to invest in the 4 nationally strategic road projects covering all 6 geopolitical zone as well as 1 power project namely; Second Niger Bridge, Lagos-Ibadan Expressway, Abuja-Kano Highway; East-West Road and Mambila Power. Ammonia Basic Chemicals Investment with OCP: An off-shoot of the Presidential Fertilizer Initiative is a development of a basic chemicals platform in conjunction with OCP of Morocco to produce Ammonia for offtake by OCP. At the moment two sites are being considered one in Onne (Port Harcourt) and another in Warri (Delta). Through most of 2018 we shall focus on executing our Infrastructure Investment strategy. 4#5NSIA Background and Structure Section 1 Section 2 Executive Summary NSIA Background and Structure Section 3 NSIA in Global Context Section 4 Financial Results Section 5 Corporate Governance Section 6 NSIA Funds Overview Section 7 Section 8 Outlook Appendices 2 5 14 19 23 28 46 46 48 Nigeria Sovereign Investment Authority 5 LO#6NSIA at a glance " About the Authority The Nigeria Sovereign Investment Authority (NSIA) was created by an Act of the National Assembly: 。 Nigeria Sovereign Investment Authority (Establishment) Act, 2011; and signed into law by the President on 26 May 2011. NSIA share ownership: Federal Govt. (45.8%), State Govts. (36.2%), Local Govts. (17.8%) & FCT (0.16%). Signatory to the Santiago Principles of the International Monetary Fund (IMF) / International Forum of Sovereign Wealth Funds (IFSWF), which are a set of 24 voluntary guidelines that assign best practices for the operations of Sovereign Wealth Funds (SWF) including transparency and governance, thus conferring on NSIA the status of an international institution. Board was inaugurated on the 9th of October 2012 and commenced investment operations in Q3 2013 with seed funding of US$1 billion. Received $500 million additional capital contribution between 2016 and 2017. Operations are anchored on a 3-fold mandate: o Building a savings base for the Nigerian People. o Enhancing the development of Nigeria's infrastructure. o Providing stabilisation support in times of economic stress. Focused on infrastructure investments in key sectors of the Nigerian economy including Agriculture, Healthcare, Power and Toll Roads implemented through Special Purpose Vehicles (SPV). NSIA oversees 12 subsidiaries/SPVs* FGF NSIA Agriculture Investments Limited Investment Company Ltd. NSIA Motorways Investment Company Ltd. Second Niger Bridge Development Company Ltd. NSIA Property Investment Company Ltd. NSIA Healthcare Development & Investment Company Ltd. FGF Private Equity Company Limited NSIA Power Investment Company Ltd. KGBrussels.L.P. InfraCredit NAIC-NPK Limited FGF PE BETA Limited N'Billion N'Billion ༠༠ཐཱ༦༠8*bg Financial Position Summary 600 500 400 300 213.67 197.89 177.83 171.52 200 100 6.31 15.79 О 2014 2015 15.77 15 10 $1.5b n 2014 420.93 396.84 2016 24.09 Financial Year ■Total Assets Equity Liabilities 5.16 3.94 Income Statement Summary 26.35 2015 11.76 5.82 Total Comprehensive Income Total Capital Contribution 46.24 2016 39.12 11.9 533.88 501.06 2017 Nigeria Sovereign Investment Authority 32.82 27.93 22.56 24.36 2017 Financial Year Profit Investment Income Capital Allocation Strategy $0.3bn + $0.6bn Stabilization Fund *NSIA channels infrastructure interventions through special purpose vehicles with expertise in areas highlighted in its 5-year infrastructure rolling plan Infrastructure Fund $0.6bn Future Generations Fund CO 6#7Nigeria Sovereign Corporate Philosophy The NSIA Way Mission To play a leading role in driving sustained economic development for the benefit of all Nigerians through; building a savings base for the Nigerian people; enhancing the development of Nigeria's infrastructure; and providing stabilisation support in times of economic stress. Value Drivers Integrity Investment Authority In all endeavours, we adhere to the highest ethical principles by reflecting probity, soundness of character and accountability. Vision To establish NSIA as a leading sovereign wealth fund globally; playing a role in promoting investments for Nigeria's economic development. Discipline We apply ourselves diligently in all we do; observing the provisions of the enabling laws on which our existence is anchored. Goals To catalyze inflow of investments into target sectors of the Nigerian economy. To develop key infrastructure projects and create institutions that contribute to and enable infrastructure development in Nigeria. Transparency Ours is an institution driven by vividly clear guidelines and best-in- class business practices. 7#8Historical Highlights... Nigeria Sovereign Investment Authority 2012-2013 " ◉ NSIA Board inaugurated. Africa Finance Corporation & General Electric MoU signings. ■ Established NMRC in a partnership with FMOF, CBN, Federal Ministry of Lands & Urban Development & Housing, and the World Bank/IFC ■ Invested in Fund for Agricultural Finance in Nigeria (FAFIN) with the Nigerian Federal Ministry of Agriculture and Rural Development (FMARD) and the German Development Bank (KfW) 2015 ■ New mandate from FGN to manage 25% of funds accruing to the FGN's Stabilisation Accounts. ■MoU with Ogun State Govt. and Lafarge Africa Plc to undertake Ogun State Reforestation PPP ■ 1st Governing Council (GC) meeting with the National Economic Council (NEC). Additional US$250 million capital approved for allocation to NSIA. ■ Completed Early Works III and advanced negotiation of Concession Agreement for 2nd Niger Bridge ■ The Vice President of FGN commissioned a task force for the establishment of Nigeria Infrastructure Development Fund 2017 ■2nd NSIA Board inaugurated ■ Partnered with GuarantCo. (PIDG) to establish InfraCredit ■ Additional US$250 million capital injection, as committed by NEC. ■ Over 8million bags of NPK 20:10:10 produced as part of Presidential Fertilizer Initiative ■ Invested in Bridge International Academies Ltd, in Education sector ■ Invested in Chapel Hill Denham Fund (NIDF) 2014 ■ Commenced 2nd Niger Bridge Project. FGN injects US$550 million into NSIA to be managed on behalf of NBET and DMO. ■NSIA invested US$100m in Seven Energy. ■NSIA's healthcare subsidiary, signs MoC with six Federal healthcare institutions across country. 2016 Commenced Presidential Fertilizer Initiative via NAIC-NPK Ltd. ■ MoU with Ithmar Capital Morocco for strategic investments in key sectors of the Nigerian economy. ☐ US$200m Agriculture Fund with UFF Agri Fund of South Africa. " US$500m Real Estate Fund with Old Mutual Africa Property Management Company of South Africa. " Approval to invest in pre-privatisation phase of the Nigeria Commodities Exchange. 1. The task force comprised of the Central Bank of Nigeria, Federal Ministry of Finance, the Debt Management Office, National Pension Commission, the Infrastructure Concession Regulation Commission and Nigeria Sovereign Investment Authority 8#9NSIA Fund: Three Separate & Ring-fenced Investment Funds Nigeria Sovereign Investment Authority Nigeria Sovereign Investment Authority % of Assets Under Management as at December 2017 Objective Stabilization Fund 20% allocation: US$ 315.8mn Provide the stabilisation support to Federation's revenue in times of economic stress. Future Generations Fund 40% allocation: US$ 676.4mn Invest in a diversified portfolio of growth investments to provide future generations of Nigerians a savings base for such time as the hydrocarbon reserves are exhausted. Infrastructure Fund 40% allocation: US$ 637.7mn Enhance the development of infrastructure, primarily through investment in domestic infrastructure projects that meet targeted financial returns. Focus Sectors - Power Asset Class Strategic Asset Allocation / Focus Sectors Investment Grade Corporate Fixed Income US Treasuries Allocation AUM $m 60% Asset Class Public Equity Allocation 25% AUM $m 137.30 - Agriculture 234.2 Private Equity 25% 71.10 Healthcare - Real-Estate 40% 81.6 Absolute Return Other Diversifiers* 25% 106.80 - Motorways 25% 361.0 Mandate / Recent Investments Capital preservation and liquidity. The Stabilisation Fund thus has a short-term investment horizon and invests in conservative fixed income mandates. ■ Public Equity: Split 1/3 Developed markets and 2/3 Emerging Markets ■ Private Equity: Split roughly 45% secondary and 55% primary interest. ■ Absolute returns: Four Hedge fund strategies such as global macro, credit, long/short equity etc. ■ Others include: Leasing, Healthcare Royalties, commodities etc. ■ Presidential Fertiliser Initiative " Real Estate Fund Healthcare Fund Commodity Exchange Ogun State Land Reforestation and Waste to Energy Project. Agriculture Fund " Family Home Fund Limited Expected Average Annualized Returns Investment Horizon US CPI Short Term US CPI + 400 BPS Long Term US CPI +300 BPS Long Term Other diversifiers include cash and cash equivalent, hard assets and commodities. The large volume of other diversifiers is due to J-curve effect in the private equity component CPI Consumer Price Index 9#10Third Party Funds Nigeria Sovereign Investment Authority Third Party Funds Nigeria Bulk Energy Trading PLC (NBET) Debt Management Office (DMO) FGN Stabilisation Fund Nigeria Sovereign Investment Authority Investment Returns Mandate Size: US$350mn In July 2014, the Federal Government of Nigeria appointed NSIA to serve as investment manager to this portion of the funds. NSIA's investment policy for the NBET Fund is similar to that of the Stabilisation Fund. The investment objective is to balance NBET's short-term liquidity needs and safety of the funds. The fund is fully invested. Mandate expires (this Month) in June 2018 Benchmark Returns: 1 Year US Treasury Yield +150BPS Actual Returns as of: о 31st December 2016: 5.42% Mandate Size: US$100mn* as NSIA was appointed to serve investment manager for US$200mn to this portion of DMO's funds for gas-to- power infrastructure projects. $100m was allocated subsequently by FGN to other projects. NSIA's investment policy with regard to the DMO Fund mirrors that of the Nigeria Infrastructure Fund. NSIA invested US$100mn in a private bond with Seven Energy to enable the completion of gas infrastructure in the South-South. Benchmark Returns: 6.875% Actual Returns as of: o 31st December 2016: 9.87% Mandate Size: NGN 14.71bn From May 2015, the Authority received 25% of funds accruing to the Federal Government of Nigeria Stabilisation Account on a regular basis for investment on its behalf. The Authority is required to invest the funds in varied financial instruments. Benchmark Returns: NIG Treasury Bills Actual Returns as of: o 31st December 2017: 10.1% o 31st December 2017: 7.54% o 31st December 2017: (7.0%)* 2. 1. NBET Funds invested under similar IPS as Stabilisation Fund DMO Funds invested under similar IPS as Infrastructure Fund. 3. FGN Stab managed per IMA 10 4. *There are currently unresolved issues with Seven Energy investment hence the negative returns#11Breakdown of NSIA US$1bn seed capital contribution apportionment Cumulative Seed Capital Contribution by Tiers of Government Nigeria Sovereign Investment Authority Breakdown of Seed Capital Contribution by State and LGA* Akwa Ibom State 4.88% 5.51% Rivers State 4.27% 4.81% 17.76% 0.16% 100.00% 100% Delta State Bayelsa State 3.12% 3.65% 2.01% 2.21% Kano State 0.99% 2.02% Ondo State 1.29% 1.70% 90% Lagos State 0.89% 1.52% Katsina State 0.75% 1.51% 36.25% Oyo State 0.73% 1.45% 80% Kaduna State 0.79% 1.42% Borno State 0.75% 1.39% Imo State 0.81% 1.37% 70% Niger State 0.73% 1.34% Bauchi State 0.73% 1.28% Jigawa State 0.69% 1.28% Benue State 0.68% 1.24% 60% Sokoto State 0.65% 1.17% Osun State 0.58% 1.14% Kogi State 0.63% 1.11% State LG 50% Abia State 0.74% 1.11% 45.83% Anambra State 0.63% 1.11% Adamawa State 0.63% 1.11% 40% Edo State 0.70% 1.10% Kebbi State 0.63% 1.10% Ogun State 0.61% 1.06% Taraba State 0.62% 1.03% 30% Plateau State 0.61% 1.03% Yobe State 0.61% 1.01% Zamfara State 0.61% 0.99% 20% Cross River State 0.59% 0.99% Enugu State 0.59% 0.98% Kwara State 0.57% 0.94% 10% 0% Federal Government State Government Local Government Federal Capital Total Territory Ekiti State Gombe State Nassarawa State Ebonyi State 0.52% 0.52% 0.85% 0.55% 0.84% 0.54% 0.83% 0.80% 0.0% 1.0% 2.0% 3.0% 4.0% 5.0% NB: The allocation formula was provided and approved by the Office of the Accountant-General of the Federation Certificates were issued in 2015 to all tiers of Government to reflect ownership in NSIA *Funds allocated on the basis of FGN derivation 6.0% 11#12Breakdown of 2016 US$250mn (NLNG Dividend) capital apportionment Nigeria Sovereign Investment Authority Cumulative 2016 US$250mn Capital Contribution by Tiers of Government Breakdown of 2016 US$250mn Capital Contribution by State and LGA* 100% 1.19% 20.41% 100.00% Kano State Katsina State Kaduna State 1.12% 2.29% 0.87% 1.76% 0.92% 1.66% Lagos State 0.94% 1.65% Borno State 0.88% 1.60% 90% Oyo State 0.79% 1.59% Niger State 0.83% 1.52% Benue State 0.79% 1.46% 80% 26.72% Bauchi State 0.84% 1.46% Jigawa State 0.79% 1.45% Akwa Ibom State 0.71% 1.43% Sokoto State 0.78% 1.40% 70% Rivers State 0.76% 1.38% Kogi State Imo State 0.78% 1.36% 0.73% 1.36% 60% Delta State 0.72% 1.32% Kebbi State 0.74% 1.31% Osun State 0.64% 1.27% 51.68% 50% Anambra State 0.70% 1.24% ■State LG Adamawa State 0.70% 1.24% Plateau State 0.74% 1.23% Cross River State 0.71% 1.18% 40% Enugu State 0.71% 1.18% Yobe State 0.70% 1.17% Taraba State 0.68% 1.15% 30% Ogun State 0.65% 1.14% Zamfara State 0.70% 1.12% Ondo State 0.66% 1.12% Edo State 0.66% 1.12% 20% Abia State 0.66% 1.09% Kwara State 0.63% 1.04% Nassarawa State 0.65% 1.02% 10% Ekiti State 0.63% 1.00% Gombe State 0.66% 0.98% Ebonyi State Bayelsa State 0.63% 0.98% 0.62% 0.87% 0% Federal Government State Government Local Government Federal Capital Territory Total 0.0% 0.5% 1.0% 1.5% 2.0% NB: The allocation formula was provided and approved by the Office of the Accountant-General of the Federation Certificates were issued to all tiers of Government to reflect share of contribution to NSIA at the 3rd GC meeting *Funds allocated on the basis of share of non-mineral revenue 2.5% 12#13Breakdown of 2017 US$250mn (ECA) capital apportionment Cumulative 2017 US$250mn Capital Contribution by Tiers of Government Nigeria Sovereign Investment Authority Breakdown of 2017 US$250mn Capital Contribution by State and LGA* Akwa Ibom State Rivers State 4.88% 5.51% 4.27% 4.81% 17.76% 0.16% 100.00% 100% Delta State Bayelsa State 3.12% 3.65% 2.01% 2.21% Kano State 0.99% 2.02% Ondo State 1.29% 1.70% 90% Lagos State 0.89% 1.52% Katsina State 0.75% 1.51% 36.25% Oyo State 0.73% 1.45% 80% Kaduna State 0.79% 1.42% Borno State 0.75% 1.39% Imo State 0.81% 1.37% 70% Niger State 0.73% 1.34% Bauchi State 0.73% 1.28% Jigawa State 0.69% 1.28% Benue State 0.68% 1.24% 60% Sokoto State 0.65% 1.17% Osun State 0.58% 1.14% Kogi State 0.63% 1.11% State LG 50% Abia State 0.74% 1.11% 45.83% Anambra State 0.63% 1.11% Adamawa State 0.63% 1.11% 40% Edo State 0.70% 1.10% Kebbi State 0.63% 1.10% Ogun State 0.61% 1.06% Taraba State 0.62% 1.03% 30% Plateau State 0.61% 1.03% Yobe State 0.61% 1.01% Zamfara State 0.61% 0.99% 20% Cross River State 0.59% 0.99% Enugu State 0.59% 0.98% Kwara State 0.57% 0.94% 10% Ekiti State Gombe State Nassarawa State Ebonyi State 0.52% 0.52% 0.85% 0.55% 0.84% 0.54% 0.83% 0.80% 0% Federal Government State Government Local Government Federal Capital Territory Total 0.0% 1.0% 2.0% 3.0% 4.0% 5.0% 6.0% NB: The allocation formula was provided and approved by the Office of the Accountant-General of the Federation Certificates to be issued to all tiers of Government to share of contribution at the 4th GC meeting *Funds allocated on the basis of FGN derivation 13#14NSIA in Global Context Section 1 Section 2 Section 3 Section 4 Section 5 Executive Summary NSIA Background and Structure NSIA in Global Context Financial Results Corporate Governance Section 6 NSIA Funds Overview Section 7 Section 8 Outlook Appendices 2 5 14 19 23 28 28 46 46 48 Nigeria Sovereign Investment Authority 14#15Largest SWFs (Ranked by Total Assets Under Management) Consistency of contributions is key to the overall impact of Sovereign Wealth Funds Nigeria Sovereign Investment Authority Rank Name AUM (US$bn) 1 Government Pension Fund Global (Norges Bank), Norway 2 China Investment Corporation, China 3 Abu Dhabi Investment Authority, United Arab Emirates 4 Kuwait Investment Authority, Kuwait 5 SAMA Foreign Holdings, Saudi Arabia 6 Hong Kong Monetary Authority, Hong Kong/China 7 SAFE Investment Company, China 8 9 10 11 12 13 Investment Corporation of Dubai, UAE Government of Singapore Investment Corp., Singapore Temasek Holdings, Singapore Qatar Investment Authority, Qatar National Social Security Fund, China Public Investment Fund, Saudi Arabia $1035.24 $900.00 30 New Zealand Superannuation Fund, New Zealand $828.00 31 New Mexico State Investment Council, United States $524.00 32 State General Reserve Fund, Oman $494.00 33 Texas Permanent University Fund, United States $456.60 34 Leste Petroleum Fund, Timor-Leste, East Timor $441.00 35 Social & Economic Stabilization Fund, Chile $390.00 36 Alberta's Heritage Fund, Canada $320.80 37 Russia Direct Investment Fund $320.80 38 Mumtalakat Holdings Company, Bahrain $295.00 39 Pension Reserve Fund, Chile $250.00 40 Strategic Investment Fund, Ireland Fiscal Stabilisation Fund, Peru Rank Name 29 State Oil Fund, Azerbaijan AUM (US$bn) $33.10 $28.50 $20.20 $18.00 $17.30 $16.60 $14.70 $13.40 $13.00 $10.60 $9.40 $8.50 $209.50 41 $7.90 14 Mubadala Investment Company $125.00 42 Revenue Regulation Fund, Algeria $7.60 15 Abu Dhabi Investment Council, UAE $123.00 43 Permanent Wyoming Mineral Trust Fund, U.S Wyoming $7.30 16 Korea Investment Corporation, South Korea $122.00 44 Oil Revenues Stabilisation Fund, Mexico $6.00 17 Australian Future Fund, Australia $105.40 45 Oman Investment Fund, Oman $6.00 18 National Development Fund of Iran, Iran $91.00 46 Pula Fund, Botswana $5.50 19 Russia National Wealth Fund, Russia 20 Libyan Investment Authority, Libya $66.30 47 Heritage and Stabilisation Fund, Trinidad and Tobago $66.00 48 China-Africa Development Fund, China $5.50 $5.00 21 22 23 Alaska Permanent Fund, United States of America Kazakhstan National Fund, Kazakhstan Kazakhstan, Samruk-Kazyna JSC $61.50 49 Fundo Soberano de Angolano, Angola $4.60 24 Brunei Investment Agency, Brunei $57.90 50 North Dakota Legacy Fund, United States $60.90 51 Alabama Trust Fund, United States $40.00 52 $4.30 $2.70 National Investment Corporation, Kazakhstan $2.00 25 Russia Reserve Fund, Russia Merged with RNWF 26 Texas Permanent School Fund, United States of America 27 Khazanah Nasional, Malaysia 28 Emirates Investment Authority, UAE $37.70 $37.70 $34.00 56 Nigeria Sovereign Investment Authority, Nigeria *$1.50 61 SONSIS (Senegal Sovereign Wealth Fund) $1.00 C Sovereign Wealth Funds of African Origins Source: Sovereign Wealth Fund Institute, Dec 2017 and NSIA Research *Total Capital Contribution of US$1.5bn; US$450mn in third party managed accounts for Debt Management Office and National Bulk Electricity Trader; N14.71bn in FGN Stabilisation Fund 15#16Sources of Funding for SWFS Nigeria Sovereign Investment Authority Sn Country Fund Name Assets (US$ bn) Inception Source 1 Norway Government Pension Fund - Global 1035.24 1990 Oil NA 2 China China Investment Corporation 900 2007 Non-commodity Seed Capital US$200 billion 3 UAE-Abu Dhabi Abu Dhabi Investment Authority 828 1976 Oil NA 4 Kuwait Kuwait Investment Authority 524 1953 Oil 5 Saudi Arabia SAMA Foreign Holdings 494 1952 Oil NA N/A: prior to its establishment, the Kingdom did not have a monetary system 6 China Hong Kong Hong Kong Monetary Authority Investment Portfolio 456.6 1993 7 China SAFE Investment Company 441 1997 8 Singapore Government of Singapore Investment Corporation 390 1981 Non-commodity Non-commodity Non-commodity NA $20 billion NA 9 Singapore Temasek Holdings 320.8 1974 Non-commodity S$354 million (Singaporean Dollars) 10 Qatar 11 China 12 Saudi Arabia 13 UAE Dubai 14 UAE - Abu Dhabi 15 UAE Abu Dhabi 16 South Korea 17 Australia 18 Iran 19 Russia 20 Libya 21 US Alaska 22 Kazakhstan Qatar Investment Authority 320 2005 Oil US$60 billion National Social Security Fund 295 2000 Non-commodity NA Public Investment Fund 250 2008 Oil NA Investment Corporation of Dubai 209.5 2006 Oil NA Mubadala Development Company 125 2002 Oil NA Abu Dhabi Investment Council 123 2007 Oil NA Korea Investment Corporation 122.3 2005 Non-commodity NA Australian Future Fund 105.4 2004 Non-commodity National Development Fund of Iran 91 2011 Oil National Welfare Fund 66.3 2008 Oil AUS$18 billion (Australian Dollars) 20% of Oil revenue, the year it was established US$32 billion Libyan Investment Authority 66 2006 Oil Alaska Permanent Fund 61.5 1976 Oil US$734,000 Samruk-Kazyna JSC 60.9 2008 Non-commodity NA 23 Kazakhstan Kazakhstan National Fund 57.9 2000 Oil NA 24 Brunei 25 Turkey 26 Malaysia 27 US Texas 28 UAE Federal 29 Azerbaijan Khazanah Nasional Texas Permanent School Fund Emirates Investment Authority State Oil Fund Brunei Investment Agency 40 1983 Oil NA Turkey Wealth Fund 40 2016 Non-commodity NA 38.7 1993 Non-commodity NA 37.7 1854 Oil and other US$2 million 34 2007 Oil NA 33.1 1999 Oil NA 30 New Zealand New Zealand Superannuation Fund 28.5 2003 Non-commodity NZ$2.4 billion (New Zealand Dollars) 31 US New Mexico New Mexico State Investment Council 20.2 1958 Non-commodity NA 32 Oman State General Reserve Fund 18 1980 Oil and gas NA 33 US Texas Permanent University Fund 17.3 1876 Oil & Gas NA 34 East Timor Timor-Leste Petroleum Fund 16.6 2005 Oil and gas $205 million 35 Chile Social and Economic Stabilization Fund 14.7 1985 36 Canada Alberta's Heritage Fund 13.4 1976 37 Russia Russian Direct Investment Fund 13 2011 $2.58 billion CAD$1.5 billion US$10 billion * Data sourced from the International Forum of Sovereign Wealth Fund (IFSWF) and Sovereign Wealth Fund Institute (SWFI) as at Dec 2018. Data may differ from current information on the corporate websites of the individual SWFs. Copper Oil Non-commodity 16#17Fund Name Sources of Funding for other SWFS Sn Country Nigeria Sovereign Investment Authority Assets (US$ bn) Inception Source Seed Capital 38 Bahrain Mumtalakat Holding Company 10.6 2006 Non-commodity NA 39 Chile 40 Ireland Pension Reserve Fund 9.4 2006 Copper US$604.5 million Ireland Strategic Investment Fund 8.5 2001 Non-commodity NA 41 Peru Fiscal Stabilisation Fund 7.9 1999 Non-commodity NA 42 Algeria Revenue Regulation Fund 7.6 2000 Oil NA 43 US Wyoming Permanent Wyoming Mineral Trust Fund 7.3 1974 Minerals NA 44 Brazil Sovereign Fund of Brazil 7.3 2008 Non-commodity 45 Mexico 46 Oman Oil Revenues Stabilization Fund of Mexico Oman Investment Fund 6.0 2000 Oil 6.0 2006 Oil 14.243 Brazilian Reals NA Remake of the Oman Oil Fund, given an additional US$1 billion 47 Botswana Pula Fund 5.5 1994 Diamonds and minerals NA 48 Trinidad and Tobago Heritage and Stabilization Fund 5.5 2000 Oil NA 49 China China-Africa Development Fund 5.0 2007 Non-commodity US$1 billion 50 Angola Fundo Soberano de Angola 4.6 2012 Oil US$5 billion 51 US North Dakota North Dakota Legacy Fund 4.3 2011 Oil and gas NA 52 Colombia Colombia Savings and Stabilisation Fund 3.5 2011 Oil and Mining NA 53 US Alabama 54 Kazakhstan 55 US Utah Alabama Trust Fund 2.7 1985 US$333,583,680 National Investment Corporation 2 2012 Oil NA Utah SITFO 2 1895 Land and Mineral Royalties NA 56 US Idaho Idaho Endowment Fund Investment Board 2 1959 Land and Mineral Royalties NA 57 Nigeria - Bayelsa Bayelsa Dev. and Investment Corporation 1.5 2012 Non-commodity 58 Nigeria 59 US Louisiana Nigerian Sovereign Investment Authority Louisiana Education Quality Trust Fund 2.2 2011 Oil 1.3 1986 Oil & Gas NA US$1 billion US$541 million (settlement from the US government over oil and gas revenues) 60 Panama Fondo de Ahorro de Panamá 1.2 2012 Non-commodity NA 61 Bolivia FINPRO 1.2 2012 Non-commodity NA 62 Senegal 63 Iraq 64 Palestine 65 Venezuela 66 Kiribati Senegal FONSIS 1 2012 Non-commodity NA Development Fund for Iraq 0.9 2003 Oil NA Palestine Investment Fund 0.8 2003 Non-commodity Transfer of assets from the Palestinian Authority FEM 0.8 1998 Oil NA Revenue Equalization Reserve Fund 0.6 1956 Phosphates NA 67 Vietnam State Capital Investment Corporation 0.5 2006 Non-commodity NA 68 Gabon Gabon Sovereign Wealth Fund 0.4 1998 Oil NA 69 Ghana Ghana Petroleum Funds 0.45 2011 Oil NA 70 Mauritania National Fund for Hydrocarbon Reserves 0.3 2006 Oil and gas NA 71 Australia Western Australia Future Fund 0.3 2012 Minerals 72 Mongolia Fiscal Stability Fund 73 Equatorial Guinea Fund for Future Generations 0.3 0.08 2011 2002 Mining Oil US$300 million NA NA * Data sourced from the International Forum of Sovereign Wealth Fund (IFSWF) and Sovereign Wealth Fund Institute (SWFI) as at Dec 2017. Data may differ from current information on the corporate websites of the individual SWFs. 17#18SWF Institute Transparency Rating Nigeria Sovereign Investment Authority NSIA has invested significant efforts in developing a robust and transparent corporate governance framework. This is because strong corporate governance structures not only foster successful relationships amongst the various organs within the Authority, but also sets the correct precedents to encourage long-term, sustainable corporate growth and partnerships with other institutional and private investors. Norway - GPFG USA - Alaska 2015 New Zealand 2016 2017 USA - Alaska Australia Future Fund Australia Future Fund Bahrain Mumtalakat Canada - AHF New Zealand Azerbaijan Ireland - SIF Singapore - Temasek UAE Mubadala. Chile Nigeria - NSIA Malasyia France SIF South Korea - KIC USA- New Mexico USA - Wyoming USA-TPSF USA - Alabama O Brazil UAE-IPIC China - CIC Timor-Leste Hong Kong - HKMA Angola - FSDEA Trinidad & Tobago UAE - ADIA Kuwait - KIA Singapore - GIC Botswana China - SAFE UAE - ICD China CAD Fund Iran China -NCSSF Qatar QIA Russia Libya - LIA Oman - SGRF Oman OIF Vietnam Saudi Arabia - PIF Mexico Saudi Arabia - SAMA AUE-EIA Venezuela - NDF Kazakhstan Algeria Brunei Panama Norway - GPFG USA - Alaska Australia Future Fund Azerbaijan Canada - AHF Ireland - SIF Singapore - Temasek Bahrain - Mumtalakat UAE Mubadala Kazakhstan - Samruk Chile Kazakhstan Samruk South Korea - KIC USA - New Mexico USA - Wyoming Malasyia UAE-IPIC Nigeria - NSIA USA - Alabama Brazil Hong Kong - HKMA Timor-Leste Trinidad & Tobago Angola - FSDEA China - CIC Kuwait - KIA Singapore - GIC UAE - ADIA Botswanal China - SAFE Qatar - QIA Russia UAE-ICD China - NSSF Libya - LIA Iran Vietnam Saudi Arabia - SAMA Saudi Arabia - PIF Oman - OIF AUE-EIA Kazakhstan - NOF Bahrain Mumtalakat Azerbaijan Singapore - Temasek UAE Mubadala Chile Panama - FAP Kazakhstan - Saruk Canada - AHF New Zealand Norway - GPFG Nigeria - NSIA Malasyia South Korea - KIC USA - New Mexico USA - Wyoming USA-Texas USA - Alabama Brazil USA - Texas PUF China - CIC Timor-Leste Hong Kong - HKMA Trinidad & Tobago Ireland- SIF USA - North Dakota Angola - FSDEA Russia-RDIF UAE-ADIA Kuwait - KIA Singapore - GIC Botswana Pula Fund Libya LIA China - SAFE UAE ICD China - CAD Fund Iran - NDFI Qatar - QIA Russia - NWF Oman - SGRF Oman - OIF Vietnam. Saudi Arabia - PIF Mexico Saudi Arabia - SAMA China NCSSF AUE-EIA Kazakhstan - NOF UAE - ADIC Algeria Algeria Kiribati Mauritania Venezuela - FEM 0 2 4 6 8 10 Brunei Kiribati Mauritania 0 2 4 6 8 10 Brunei Kiribati Mauritania 0 2 4 6 8 NSIA had no Board between Q3 2015 and Q2 2017, which accounted for the downgrade on the SWF Transparency Rating in 2016. However, the reconstitution of the Board was reflected in the 2017 year end ranking. Source: Sovereign Wealth Fund Institute, 2013 to 2017 *The Linaburg-Maduell Transparency index is a method adopted by the Sovereign Wealth Fund Institute for rating 'transparency in governance' in respect of Sovereign Wealth Funds 10 18#19Financial Results Section 1 Section 2 Section 3 Section 4 Executive Summary NSIA Background and Structure NSIA in Global Context Financial Results Section 5 Corporate Governance Section 6 NSIA Funds Overview Section 7 Section 8 Outlook Appendices 2 5 14 19 23 28 28 46 46 48 Nigeria Sovereign Investment Authority 19#205-Year Financial Performance (2013 to 2017) Statement of Comprehensive Income GROUP Nigeria Sovereign Investment Authority 2017 N '000 Total operating income 30,176,455 2016 N '000 132,438,305 2015 N '000 14,558,038 Total investment management & custodian fees (709,082) Total operating profit 29,467,373 (682,201) 131,756,104 (596,659) 13,961,379 (344,331) 3,597,062 2014 N '000 3,941,393 N '000 1,466,185 (21,905) 2013 1,444,280 Revenue from infrastructure susidiaries investment 31,367,992 Expense from infrastructure subsidiaries investment (33,514,157) Loss from infrastructure subsidiaries investment (2,146,165) Other income Total other income 7,960 7,960 Operating and administrative expenses (4,719,621) 666,107 666,107 (2,332,541) 38,400 38,400 (2,333,619) 3,239,795 3,239,795 (1,644,388) 495,017 495,017 (1,414,139) Finance Cost (85,223) Share of profit of investments in associates 434,988 Profit before tax 22,959,312 289,755 130,379,425 124,914 11,791,074 16,364 5,208,833 525,158 Taxation (402,038) Profit for the period 22,557,274 (132) 130,379,293 (15,496) 11,775,578 (42,907) 5,165,926 525,158 Other comprehensive income: Items that may be reclassified to profit and loss Movement in fair value reserves Net change in fair value Net amount transferred to profit or loss 8,187,284 (1,717,936) 25,968,800 (12,359,477) 12,654,237 10,489,666 (19,464) Share of comprehensive income of investments in associate 60,049 (461,502) 388,322 Currency translation differences (1,156,763) 6,306,224 1,537,219 Other comprehensive income for the period 5,372,634 19,454,045 14,579,778 116,981 10,606,647 (19,464) Total comprehensive income for the period 27,929,908 149,833,338 26,355,356 15,772,573 505,694 NSIA's accounts are audited by Price WaterhouseCoopers and published within the mandatory period 20#215-Year Financial Performance (2013 to 2017) Statement of Financial Position Asset Total assets GROUP 2017 2016 2015 2014 N '000 N '000 N '000 N '000 Nigeria Sovereign Investment Authority 2013 N '000 533,882,579 420,934,176 213,674,786 177,838,556 157,595,371 Liabilities Trade and other payables Borrowings Total liabilities 29,285,925 3,534,631 32,820,556 24,089,561 15,788,509 6,310,289 24,089,561 15,788,509 6,310,289 439,677 1,400,000 1,839,677 Equity and reserves Contribution by Government 280,662,500 170,402,086 204,375,000 147,845,348 155,250,000 17,466,251 155,250,000 155,250,000 5,691,084 43,190,981 36,661,142 6,801,726 7,958,502 23,513,074 1,653,739 10,470,202 525,158 (19,464) 116,981 Retained earning Fair value reserves Currency translation reserves Total equity and amount attributable to equity 501,057,293 contributors (Government) Non-controlling interests Total equity Total equity and liabilities 396,839,992 197,883,064 171,528,267 155,755,694 4,730 4,623 3,213 501,062,023 396,844,615 197,886,277 171,528,267 155,755,694 533,882,579 420,934,176 213,674,786 177,838,556 157,595,371 NSIA's accounts are audited by PricewaterhouseCoopers and published within the mandatory period 21#22Nigeria Sovereign Investment Authority 46.24 Statement of Comprehensive Income (with FX gains impact) (bn): 2013 to 2017 Statement of Comprehensive Income (without FX gains impact) (bn): 2013 to 2017 5-Year Financial Results Overview (2013 to 2017) 160 140 120 149.83 100 103.6 60 80 60 50 50 50 45 45 40 40 35 55 30 30 25 25 26.36 26.28 15.77 15 20 20 26.36 27.93 10 1.65 20 20 15.77 46.24 5 26.36 26.28 0.51 15.77 0.51 0 2013 2014 2015 2016 2017 2013 2014 Core Income FX Gains 40 40 2015 2016 2017 Core Income 22 22#23Corporate Governance Section 1 Section 2 Section 3 Section 4 Executive Summary NSIA Background and Structure NSIA in Global Context Financial Results Section 5 Corporate Governance Section 6 NSIA Funds Overview Section 7 Section 8 Outlook Appendices 2 5 14 19 23 23 28 28 46 46 48 Nigeria Sovereign Investment Authority 23#24Nigeria Sovereign NSIA Governance Structure Governing Council (56 members) NSIA Governance System 1. His Excellency, Mr. President (could be represented by the VP) 2. 36 State Governors & FCT Minister 3. Honorable Minister of Finance (HMF) 4. Attorney General of the Federation 5. Minister of Economic Planning 6. Governor, Central Bank of Nigeria 7. Chief Economic Advisor 8. Chairman, Revenue, Mobilization, Allocation, & Fiscal Commission 9. 12 Members appointed by Mr. President on advice of HMF Provide counsel to the Board, while also observing the independence of the Board/Management. Hold one annual meeting following the issuance of the annual report. Reporting Structure Governing Council Board of Directors Nine-member Board Committee Investment Authority The Governing Council is not fully constituted as non-statutory members are yet to be appointed. The 2016 Annual Governing Council meeting was held in February 2017. Authority Secretary Chief Executive Officer/M.D. Internal Audit Board of Directors (9 members) 1. Non-Executive Chairman* 2. Managing Director/CEO 3. Two other Executive Directors of the Authority 4. One Non-Executive Director who is a distinguished legal practitioner 5. Four other Non-Executive Directors Executive Management (6 members) 1. Chief Executive Officer/M.D. 2. Chief Investment Officer/Exec. Dir. 3. Chief Operations Officer/Exec. Dir. 4. Financial Controller 5. Head, Legal 6. Head, Human Resources A new Board was inaugurated on the 12th May 2017. Fiduciary Duties: " 5 sub-committees: 。 Externally Managed Investment о ○ Direct Investment Audit о Finance & GP о Compensation and HR Day-to-day management and operation of the Authority. Chief Investment Officer (Exec Dir) Chief Operations Officer (Exec Dir) Head, Human Resources Head, Legal Financial Controller 24#25Board Committees Board of Directors & Committees Nigeria Sovereign Investment Authority Externally Managed Investments Committee Direct Investments Committee Compensation and Human Resources Committee Audit Committee Finance and General Purpose Committee Established to assist the Board in fulfilling its oversight responsibility for the externally managed investment assets of the NSIA, including the investment process, strategies and policies that are employed with respect to the investment assets. Established to assist the Board in fulfilling its oversight responsibility for the directly managed investment assets of the NSIA, including the investment process, strategies and policies that are employed with respect to the investment assets. Established to assist the Board in fulfilling its oversight responsibility for ensuring that the compensation structure for the NSIA's employees is consistent with the NSIA's long-term objectives. Established to assist the Board in fulfilling its oversight responsibilities relating to the NSIA'S accounting and financial reporting policies and practices, compliance programs, internal controls and general compliance with applicable laws and regulations. ■ Established to assist the Board exercise its oversight responsibility with respect to NSIA's material and strategic financial matters, including those related to the funding, budgeting, expenditure and general operation and financial structure. 25 25#26Board Profile Nigeria Sovereign Investment Authority Chairman: Olajide Zeitlin ⚫AB (Amherst College), MBA (Harvard) • Chairman, Coach Inc. ⚫ Board Member, Affiliated Managers Group Inc. Former Partner, Goldman Sachs • Former members, President Obama's economic transition team ED/COO: Stella Ojekwe-Onyejeli BSC (Unilag), MBA (Cranfield School of Mgt, UK), FCA Nearly 3 decades experience in financial advisory, & risk management ⚫ Former Director and Head of Operational Risk & Control, Barclays (covering Emerging Markets and Africa) Former VP/ Head Quality Assurance, Citibank Ex Arthur Anderson & Co (Nigeria) Ex KPMG (Nigeria/South Africa) Director: Lois Laraba Machunga-Disu BA (St. Elizabeth, NJ), LLB (UB, UK), ACIArb (UK) • Member. Institute of Petroleum (UK), Nigerian Gas Association, Nigerian Chamber of Shippers and the International Association for Energy Economics (IAEE) • Over 3 decades experience in oil and gas industry ⚫ Ex-NNPC MD/CEO: Uche Orji . Bsc (UniPort), MBA (Harvard) Over 2 decades global experience largely in financial services. • Former MD, UBS Securities, NY Former MD, Equities Division, JP Morgan Securities, London • Senior Analyst, Goldman Sachs Asset Mgt Ex Diamond Bank (Nigeria) Ex Arthur Anderson & Co (Nigeria) • Director: Halima Buba BSc, MBA (UNIMAID) HCIBN, FCIFCN, FICMR, FILRMN Director, TAJ Consortium Nearly 2 decades experience principally in Banking Former DGM EcoBank Former Director, Adamawa Savings and Loans Director: Bello Maccido LL.B & MBA (ABU), University, USA, B.L FCIS, FCIBN and MBA, Wayne State Over 3 decades experience in Banking Chairman, FBN Merchant Bank Ltd Ex FBN Plc ED/CIO: Hanspeter Ackermann ⚫ BSC (Basel, Switzerland), CFA • Over 30 years investment experience. ⚫ Former President/Managing Partner, Eiger Asset Management, New York. Former CIO/Head, Asset Mgt, Samba Capital ⚫ Former Director/CIO, UBS, New York Director: Urum Kalu Eke, MFR BSc (Unilag), MBA (FUTO) • Over 3 decades cognate experience spanning • . Banking and Financial Services Group Managing Director, FBN Holdings Plc Board member, First Bank of Nigeria Limited & FBN Merchant Bank Limited Director: Asue Ighodalo BSC (UI), LL.B (LSE, UK), BL. • Over 3 decades experience in the practice of Law Founding Partner, Banwo & Ighodalo Chairman, Sterling Bank Plc & Dangote Flour Mills Plc ⚫ Boards member, Ensure Assurance Company Plc, Okomu Oil Palm Company Plc, CardinalStone Partners Limited, Global Mix Limited, Mainstreet Technologies Limited, Christopher Kolade Foundation and Fate Foundation 26#27Nigeria Infrastructure Fund Investment Process Board Participation NSIA Resources 1st Board Appraisal 2nd Board Appraisal Financial Close Nigeria Sovereign Investment Authority Initial Due-Diligence and Analysis Detailed Evaluation & In-Depth Diligence Deal Execution and Negotiations Post-Investment Management & Monitoring No dedicated resources mobilised Dedicated Project team formed Dedicated Project team retained Smaller project team retained Nature of Analysis/ Advisors engaged Work with internal experts, consultants, to understand key issues linked to idea Approval level needed to proceed Consent to proceed from this stage rests with the Executive Committee " External advisors engaged as needed; Detailed evaluation of every aspect of target finalised Consent to proceed from this stage rests with the Board (Investment Committee) " Active review and negotiation of investment terms. External advisors engaged as needed Consent to proceed from this stage rests with the Board (Investment Committee) " Work closely with partners and project sponsors. Communicate regularly with the Board Investment & Risk Committees and provide regular management accounts 27#28NSIA Funds Overview Section 1 Section 2 Section 3 Section 4 Section 5 Section 6 Section 7 Executive Summary NSIA Background and Structure NSIA in Global Context Financial Results Corporate Governance Section 8 NSIA Funds Overview Outlook Appendices 2 5 14 19 23 28 46 46 48 Nigeria Sovereign Investment Authority 28#29Future Generations Fund (FGF): Update and Investment Strategy Highlights The strategic objective will be to significantly gain exposure to the different asset classes in accordance with the asset allocation. Commitments were made to 5 Private Equity Managers totaling $47m. This provides further exposure to Emerging Markets, Europe and US (PE) market. A $15m commitment has also been made to the RWC Emerging Market Fund, providing style diversification to the Emerging Market Long Only asset class. FGF Total Asset Allocation (US$ mn 269 331 408 Other Diversifiers Asset Class Allocation ($mn) 41 19 30 27 Hard Assets 15 15 Commodities 15 15 66 Private Equity 84 138. 20 EM Long Only 20 40 DM Long Only 40 50 Absolute Return 100 100 770 Nigeria Sovereign Investment Authority ■Cash Management Invested ■Commited ■Cash Management Invested ■Commited Allocation Guidelines Policy Target Tactical Target Allowable Ranges Benchmark Growth Assets Developed Equities Emerging & Frontier Equities Private Equity (PE) 80% 85% 70-85% MSCI All Country World Index 10% 10-55% MSCI World Index 15% 10-45% MSCI Emerging Markets Index 25% 0-35% Absolute Return 25% 10-40% Other Diversifiers 10% 0-10% TBD Hedging Assets: Inflation 15% 10% 5-20% Commodities 5% 0-5% Hard Assets 5% 0-15% Hedging Assets: Deflation 5% 5% 5-20% Cambridge Assoc. US Private Equity Index HFR Event-Driven (Total) Index Weighted Composite S&P GSCI (Equal Weighted) 50% FTSEⓇ EPRA/NAREIT Developed Real Estate Index / 50% CA Private Natural Resources Benchmark Citi World Gov. Bond Index (Hedged)-$ Cash 5% 0-10% US T-Bill Total 100% 100% 29 29#30Other Large Sovereign Peer Investors Institutions Future Generations Fund (FGF) - How do Peers Allocate? Growth Assets Macroeconomic Hedges NSIA FGF: Current Allocation* 28% 14% 25% 26% 4% 4% NSIA FGF: Target SAA 25% 25% 25% 3% 10% 5% 3% 5% Norwegian Pension Fund 61% 37% Australia Future Fund 43% 9% 14% 11% 13% 10% Singapore Government Investment Company 43% 13% 28% 11% 5% Average Peer Group** 49% 13% 7% 16% 8% 1% 1% 4%1% CA Leading US Endowments (over US$ 7bn)*** Listed Equity (%) ■Fixed Income (%) 35.5% 17.3% 20.9% 7.8% 12.7% 1%1% 3.9% 0.0% 20.0% 40.0% Private Equity (%) ■Inflation Linked Bonds (%) ■Real Estate / Infrastructure (%) ■Cash (%) 60.0% Hedge Funds (%) Commodities (%) ■ Other (%) | 80.0% 100.0% ☐ Relative to NSIA, most peers have comparable asset allocations with similar risk profiles There is also considerable variety in the way peers are positioned, which is not surprising Source: Cambridge Associates Notes: Fixed income can comprise of Growth Assets (investment grade credit, high yield bonds and emerging market debt) and Macroeconomic Hedges (government bonds). We have sufficient clarity for the Proposed Long Term Growth SAA to differentiate between these two elements but cannot do so for NSIA Peers. We have included Other Diversifiers in the other category. *As at June 30th 2015 ** Based on a survey of 9 global growth-orientated sovereign wealth funds. Asset allocation data has been gathered from public sources and using our own proprietary investigation and is the latest available. *** Consists of 14 US-based endowments who are clients of Cambridge Associates. Data as of 31 March 2015. 30 Nigeria Sovereign Investment Authority#31The Stabilisation Fund (SF): Investment Strategy Highlights Objective of the Stabilisation Fund is to provide stabilisation support to the Federation revenue in times of economic stress. The twin mandate of the SF are capital preservation and liquidity. The SF thus has a short time horizon and invests in conservative fixed income mandates. Allocations were made to two managers under the Investment grade Corporate Credit bucket (IR+M 1-5 Year Credit A or Better and Smith Graham & Co Enhanced Cash Product). SF Total Asset Allocation (US$ Mn) Credit Exposed Assets Asset Class Allocation (US$ mn) 176 124 176 Currently Allocated Unallocated/Cash Management Credit Exposed Assets Investment Grade Corporate Fixed Income Rate Exposed Assets US T-Bills US Treasuries 1-3 years Total Rate Exposed Assets 124 Allocation Guidelines Currently Allocated Unallocated/Cash Management Policy & Tactical Target Benchmark 60% Barclays US Universal Bond Index Libor 3 Month US$ 91 Day Treasury Bill Index Barclays US Universal Bond Index 40% Barclays 1-3 Year Treasury Bond 91-Day Treasury Bill Index 100% Barclays 1-3 Year Treasury Bond Nigeria Sovereign Investment Authority 31#32The Stabilisation Fund (SF) - How do Peers Allocate? Nigeria Sovereign Investment Authority Sovereign Peer Institutions NSIA Stabilisation Fund (SAA)** Average Peer Group* 7% 11%1% 60% 100% 31% 0% Listed Equity (%) 20% 40% 60% 80% 100% Real Estate / Infrastructure (%) Fixed Income (%) Private Equity (%) Gold (%) ■Cash (%) Hedge Funds(%) Inflation Linked Bonds (%) Other (%) ■ Most peer funds with 'stabilisation' objectives consist primarily of fixed income and cash securities. Source: Cambridge Associates availabl * Based on a survey of 6 global sovereign wealth funds that have stabilisation objectives. Asset allocation data has been gathered from public sources and using our own proprietary investigation and is the latest available. **SAA comprised of 40% allocation to 1-3 year US Treasuries and a 60% allocation to investment grade corporate fixed income and absolute return fixed income.#33NIF: Strategy and Sector Allocation Investment Strategy Focus Sector Allocation Communication Nationwide Strategic Impact + Attracts Foreign/Local Institutional Capital + Attractive Commercial & Social Returns + Conducive Legal / Regulatory Environment Rail Waste & Sewage NIF Investment Portfolio Free Trade Zones & Industrial Parks Agriculture Real Estate, Retail & Industrial Refining Tourism Motorways Healthcare Water Resources Power Aviation Gas Pipeline, Storage & Processing Mining & Basic Materials Ports Focus Sectors Sectors of Interest Nigeria Sovereign Investment Authority 33 33#34Nigeria Sovereign Nigeria Infrastructure Fund: Investment Strategy Investment Authority ■ NIF's role in Nigeria's infrastructure sector is to catalyze growth of key sectors, support projects of national importance, and attract Foreign Direct Investment. NSIA INFRASTRUCTURE STRATEGY IS ANCHORED ON THREE PILLARS: DIRECT INVESTMENT STRATEGY: ■ Second Niger Bridge (2NB): US$750mn project to develop the 2NB in partnership with Julius Berger. Nigeria Commodity Exchange (NCX): US$10mn project to privatize the NCX. ■ LUTH Centre for Advance Medical Care: US$20mn investment in the development of a cardiovascular diagnostic and treatment hospital in partnership with LUTH and Abraaj. Nigeria Trading Platform: Technology platform for the Nigeria Customs Service to increase revenue collections and enhance efficiency. Bridge Academies: US$5.0mn investment to improve the quality of education for Nigerian students. CO-INVESTMENT STRATEGY: ■ FAFIN: US$10mn commitment in the US$100mn Fund for Agricultural Finance in Nigeria (FAFIN), in partnership with German Dev Bank, KFW and Ministry of Agriculture. ■ NSIA-UFF Agriculture Fund: Investment of US$25mn, in a US$200mn Nigerian agriculture fund in partnership with Old Mutual/UFF of South Africa. ■ Middle Market Industrialisation Fund: To invest in middle market industrialization projects to stimulate the economy. CREATION OF INSTITUTIONS: ■ NMRC: NSIA and the Federal Ministry of Finance has launched the Nigeria Mortgage Refinancing Company (NMRC) to lower costs and improve access to mortgages. ■ InfraCredit: NSIA has launched the Nigeria Infrastructure Credit Enhancement Facility (InfraCredit) in partnership with GuarantCo & PIDG. • Development Bank of Nigeria: NSIA worked with the Ministry of Finance to create the Development Bank of Nigeria (DBN). ■ Presidential Fertilizer Initiative: Participation in US$129.3mn project for blending 500,000 metric tons of NPK. 34#35Development Impact: Highlights 2017 ◉ ☐ Catalysed private sector and pension fund participation in critical infrastructure projects. Promoted long-term economic growth and development through investments in core and pioneering infrastructure projects in under-served sectors and regions. Sokoto L&Z Integrated Farms (FAFIN) aggregated 347,000 litres of Keb milk, increasing the income for 500 herdsmen out of which 50% were fulani women. ano Jigawa Bridge International Academies: operating 58 schools across Lagos, Osun and Borno states, serving 11,387 pupils. Kwra Niger 125 retail jobs created/sustained by Dayntee Farms (FAFIN), out of which approximately 90% were from neighbouring Osun communities. Kaduna, President Fertilizer Initiative: reviving 14 blending plants across Nigeria with a combined capacity of over 2 million metric tons of NPK fertilizers, supplying over 8 Adamawa million 50kg NPK bags in 2017. Abuja F.C.T. Nassarawa Benue Chapel Hill Denham Nigeria Infrastructure Debt Fund: channeled N200 billion towards long-term infrastructure investments across Nigeria. Ogun Lagos Ondo Edo Enugu bonyi InfraCredit: issuance of the Viathan Bond, unlocking new Abia River private investments and enabling the provision of up to 100 direct and indirect jobs. Bayelsa Crest Agro (FAFIN) aggregated Cassava from 128 smallholder farmers within the community and is on track to aggregate from over 750 smallholder farmers in 2018. A. bom Nigeria Sovereign Investment Authority 35 55#36NIF Investments: Nationwide Footprint FAFIN L&Z Integrated Farms AKTH Diagnostic Centre Ltd. FAFIN DPAAL FAFIN Kebbi Sokoto Zamfara Kwara Niger Dayntee Farms Oyo Ogun Kogi Ekiti Osun Katsina Kano Babban Gona Borno Jigawa Yobe Kaduna Bauchi Gombe Abuja F.C.T. Nassarawa Ondo Edo Enugu Ebonyi, Benue Lagos Bridge International Academies Anambra Delta Imo Cross River ADia A. Ibom Rivers InfraCredit Cancer Centre Bayelsa Viathan LUTH Jos Taraba Adamawa Nigeria Sovereign Investment Authority Bridge International Academies Healthcare Fund Novum Active Regions Closed Transactions Presidential Fertilizer Initiative FAFIN Crest Argo FMCU Diagnostic Centre Nation-wide projects ☐ Nigeria Mortgage Refinancing Company ☐ CHD Nigeria Infrastructure Debt Fund ☐ MTN Nigeria Seven Energy 36#37Presidential Fertilizer Initiative (PFI) Project Objectives " Nigeria Sovereign Investment Authority The PFI objective is to deliver commercially significant quantities of affordable and consistently high quality NPK 20:10:10 fertilizer at the right time to Nigerian farmers. The programme commenced in 2017 with an initial production target of 20million bags of NPK 20:10:10 fertilizer, and was subsequently revised to deliver 10million bags to farmers at a price of #5,500. Preparation for 2018 PFI has begun with a similar objective and production target Benefits of the initiative include: Subsidy elimination - estimated #50bn savings in budgetary provisions for fertilizer subsidies in 2017. Projected #150bn cumulative savings over three years from 2017. Import substitution - Estimated foreign exchange savings of US$150mn in 2017. US$450mn in cumulative savings over three years by maximizing local content. - Food security the increase in food production will enhance national food security and reduce food-induced inflation. Target Project Description Deliver high quality NPK 20:10:10 fertilizer on-time and at affordable price of #5,500 per 50kg bag (30-40% lower than market price). Create thousands of jobs by reviving the local blending plants. Rationale Lack of resources for subsidies. Only 30% of inputs are imported. The rest are locally sourced. Moribund blending plants can be revived to create jobs. The MoU with Morocco has led to reduced prices for diammonium phosphate (DAP). NSIA to execute the project in partnership with FEPSAN Project SPV (NAIC NPK) to source and import raw materials. Contract local blending plants. Agro-dealers and government to procure from blenders. Strategy Project Update " Production of 10 million bags of NPK 20:10:10 fertilizer for 2018 о 2 batches of 4 million bags each and 1 batch of 2 million bags Sale of 6.3 million bags of NPK fertilizer in 2017 o Enough raw materials leftover from 2017 to produce and sell over 3 million bags of NPK fertilizer for 2018. Factory gate price of #5,000 per 50kg bag О Retail price to farmers at #5,500 per 50kg bag Sales for PFI 2018 to begin last week of February 。 Delivery to both State governments and agro dealers Concluded arrangements for #25 billion CBN RSSF through UBA О First tranche of N5 billion has been disbursed. N5,500 FGN TIPANO ○ A request has been made to CBN for second tranche of N10 billion. 37#38Presidential Fertilizer Initiative (cont'd): Blending Plants for 2018 Funtua Fertilizer & Chemicals Limited (Katsina) Superphosphate Fertilizers & Chemicals (Kaduna) Fertilizers & Chemical Limited (Kaduna) MFB Fertilizer & Chemical Company Ltd. (Kaduna) Morris Nigeria Limited (Niger) Golden Fertilizer Company Limited (Lagos) Edo State Fertilizer and Chemicals Co. Ltd 'WACOT' (Edo) Katsina Kaduna Niger Abuja F.C.T. Lagos Ebonyi Edo Akwa-Ibom Kano Benue Bauchi Jos Nigeria Sovereign Investment Authority Citizens Fertilizer and Chemicals Nig. Ltd. (Kano Aliyuma Fertilizer & Chemicals Company (Kano) Kano Agricultural Supply Company (Kano) Bauchi Fertilizer Company (Bauchi) BE JAFTA Group Nigeria (Jos) Benue Organic Fertilizer Company Ltd. (Benue) Ebonyi State Fertilizer & Chemical Co. (Ebonyi) Greenwell Technologies Nig. Ltd. (Akwa-lbom) The Office of the National Security Adviser (ONSA) visited all 15 blending plants in order to review the security arrangements in place and propose additional security measures. Following implementation of the recommendations of ONSA's, the 15 blending plants have been cleared to partake in the project. Additional blending plants will be added in the course of the year. 38#39Healthcare Update Federal Medical Centre Umuahia (FMCU) and Aminu Kano Teaching Hospital (AKTH) Nigeria Sovereign Investment Authority Description: As part of its Medical Diagnostics program, NHDIC is developing modern medical diagnostics centres in Umuahia and Kano, to be co-located with FMCU and the AKTH respectively. The Project companies will provide diagnostic radiology and pathology services within the hospital premises. Sponsors: NSIA, FMCU and AKTH " NHDIC Investment: FMCU US$5.2 million, AKTH US$4.4 million Status: Financial close reached in March 2018. Construction work is in progress. Ongoing Construction NHDIC ADVANCED MEDICAL DIAGNOSTIC CENTER AKTH, KANO WELCOME 3D Renditions בתת NSIA 39 39#40Healthcare Update contd. Lagos University Teaching Hospital (LUTH) Nigeria Sovereign Investment Authority Description: NHDIC is developing a modern radiation therapy centre at LUTH. The centre will be equipped with linear accelerators and brachytherapy equipment to provide radiotherapy treatment for cancer patients. An independent operator will be procured to run the centre however, services will be integrated with LUTH's oncology unit. Sponsors: NSIA and LUTH NHDIC Investment: US$7.4 million Status: Financial close reached in March 2018. Construction work is in progress. Ongoing Construction POT DEPT. OF RADIOTHERAPY & ONCOLOGY DEARAN ONCO 3D Renditions 40 40#41NSIA-UFF Agriculture Fund Project Objectives The NSIA-UFF US$200.0mn Agriculture fund was established to develop large scale farming combined with out-grower schemes in areas that address both food security and foreign exchange through exports. NSIA and UFF will invest US$25mn each, third party investors up to US$150.0m, targeting a total commitment size of US$200.0mn. The investment is structured in a 70:30 ration between food security and export market. With investments both in farming, infrastructure such as irrigation, dams, storage and mechanization of farming in Nigeria. The Fund targets greenfield and brownfield projects as well as investments in high technology driven agriculture Initial target area for food security are maize, rice, dairy farming and cassava. Export include table fruits, citrus, cocoa, sesame etc. Project Name Novum Farms Products Maize, Soya beans Gurara Dam TBD Cassava Opportunity Cassava Additional Offshore Investors Future NSIA Agriculture Investment Company (NAIC) 50% Project Structure Old Mutual African Agri-Fund I PCC 50% NSIA Agriculture Investment Company (NAIC) UFF Management (Mauritius) Asset Management Contract 50% INVESTCO (Mauritius) MANCO (Mauritius) Management fees Project 1 Project 2 Project 3 Project 4 Establishment of Agric Fund 50% Advisory Engagement Transaction Development and Due Diligence Closure of first transaction. MANCO Adviser (Nigeria) Capital Raising for US$100-200mn additional funds Investment Pipeline Description Nigeria Sovereign Investment Authority Investment into an existing chicken feed producer located in Nasarawa state for backward integration into maize, soya bean and wheat production on 1600 ha of land. Large scale farming opportunity on 2,000 ha of land located in close proximity to Gurara Dam located in Kaduna state. Relocation, installation, and the eventual operation of a Cassava starch plant in Edo State. Project Roadmap Q3-Q4 2016 Q1-Q4 2017 Q1 2018 Q2-Q4 2018 41#42Nigeria Sovereign Bridge International Academies (Nigeria) Project Background Bridge is the largest chain of low cost private schools in Africa, operating 500+ schools and teaching over 100,000 students in Kenya, Uganda, Nigeria, Liberia and India. Bridge has developed a unique and scalable 'Academy-In-A-Box' business model that leverages innovative, low-cost technology to centrally control and drive efficiencies into every segment of the process of delivering education. Investors include IFC, Gates Investment, Zuckerberg Education Ventures, DfID, Learn Capital, Omidyar Network, New Enterprise Associates, and Khosla Ventures. NSIA closed a US$5m investment in Bridge International Academies (Nigeria) in 2017 with the following objectives: o Improve the quality of education for Nigerian students that would either not attend school or attend individually owned and operated schools. О Provide affordable education. The company charges fees on average of US$6-10 per month depending on the market. О Provide quality education. Third-party assessments demonstrate that Bridge students outperform peers. о Ensure uniform and high quality education throughout Nigeria's states, and in partnership with state governments where possible. As at the time of investment, Bridge Nigeria was already operational in Lagos State with plans to expand across Nigeria (in partnership with state governments where possible). The company operates under 2 distinct markets and business models: О Parent Paid Market o Publicly Funded Charter School Market - PPP Model General Update ■ ■ Investment Authority Bridge currently operates 59 schools in Nigeria, with approximately 11,400 active pupils. О 54 academies in Lagos across 8 LGAs (Agege, Alimosho, Badagry, Epe, Ibeju-Lekki, Ifako-ljaye, Ikorodu, and Ojo) with Epe being our newest LGA. О ○ 4 academies in Osun state across 4 LGAs 1 Partnership academy in Borno State (launched in Oct. 2017 in partnership with Nigeria Stock Exchange (NSE) and Borno State Govt. Although Bridge had initially set a target of 80 schools by the end of 2017, the company faced delays hiring. The company is aiming to open approximately 60 new academies by September 2018. Bridge has plans to establish a c.US$30m Real Estate Fund. Through this platform, the company will fund CAPEX requirements and acquire land. It remains to be seen whether Bridge can effectively outsource CAPEX risk to 3rd party investors, as Bridge has not yet implemented this in other markets. Publicly Funded Charter School Market Update Edo State PPP Bridge is in the final stages of closing its first Publicly Funded Charter School deal in Nigeria. The PPP deal with Edo State will see Bridge manage 1,100 of Edo state's public primary schools over a 5 year period. Other Potential PPPs The company is currently in intermediate stage of talks with Lagos, Kaduna, Borno, and Osun state governments over possible PPP deals. Preliminary exploration into a possible PPP deal with Delta state has commenced. 42#43Nigeria Sovereign Bridge International Academies (cont'd): Impact Maisandari Alamederi Model Public School, Borno: a Partnership with Borno State, funded by Nigeria Stock Current Bridge Operations in Nigeria Sokoto Katsina Zamfara Kebbi Kano Jigawa Yobe Borno Kaduna Bauchi Gombe Niger Abuja Plateau Nasarawa Taraba Benue Exchange. Serves 210 IDP and Kwara out-of school Oyo children. Ekiti Kogi Osun Ondo Ogun Edo Enugu Ebonyi Anambra Delta Imo Abia Cross River Public Private Partnership Public Schools Rivers Akwa Bayelsa Ibom Private Schools Edo State Basic Education Sector Transformation: 1500 Teachers trained, 100,000 textbooks printed, 237 schools across 17 LGAs launched, ~1100 teacher tablets and 237 smartphones issued Lagos Adamawa "If I am not able to achieve anything else during my tenor as Governor, I will be happy to have invested in the Edo BEST program as my singular success story." Governor Obaseki, Edo State Governor "Our Governor is assured of a second term in Office as we will all ensure that he is voted in to continue this good work he has started through the Edo BEST program" An Edo State Teacher after attending EdoBEST Training "The union pledges their allegiance to this current administration for their strong focus on supporting teachers and equipping them to work better in the classrooms" Edo State NUT Leader Investment Authority Research shows that significant increase in student learning across a state leads to 5% GDP growth. Statewide programs that focus on student learning, through intensive teacher support and performance management are thus, the single most important investment in each State's economic growth. Bridge International Academies enables governments to transform their basic education sector at state-wide scale through: A technology-enabled learning and education delivery platform Intensive training in school and classroom management leading to positive behavior change Continuous improvement on teacher learning resources, including lesson plans for each subject each day Bridge's teacher evaluation and support programming enables existing civil service staff to develop critical 21st Century skills to prepare Nigeria's next generation for success. Edo State recently implemented a comprehensive teacher development and curriculum support program in partnership with Bridge that promises huge gains in learning for the state. Bridge delivers results. Preliminary results of a study of Bridge schools in Lagos show: 80% of Bridge students performed above the sample average in English Bridge schools received the highest school management scores on the World Management Survey Tool, scoring 40% higher than other private and public schools in Lagos. Obadeyi Crescent-OJ-LA Matty-Mary Street-AL-LA Aderupoko Street-AL-LA Aderupoko Street-AL-LA Shallom Street-EP-LA 43#44Ogun State Land Degradation Neutrality Project Nigeria Sovereign Investment Authority Project Objectives The main objective of the Project is transform 108,000 hectares of heavily degraded land to an arable green area, and create sustainable jobs. The vision is to develop replicable solutions to the known environmental issues in Nigeria. • The Project is primarily focused on three categories of land use: 。 Vegetation and biodiversity restoration о Communal farming land o Large scale cash crops commercial plantations Project Description " Ogun State Government, NSIA and Lafarge Africa signed a Memorandum of Understanding in September 2015 in the presence of the President. The project structure involves creating a land-trust that will hold 108,000 hectares for the benefit of Ogun State. NSIA and Lafarge committed €100,000 (2016) and €250,000 (2017) to develop and manage feasibility studies. The Project comprises three sub-projects: о A Waste to Energy Project о Expected developmental impacts includes food security, electrification, jobs creation and environmental improvements. A Land Degradation Neutrality Project о A Bio Fertiliser Project Market Drivers • Ogun State Land Degradation Neutrality Project is first of its kind in Nigeria. Once successfully implemented, the project structure can be replicated across other regions and will serve as an example as to how to address deforestation in Nigeria, There is strong local and international interest in the Project: о Ogun State and the Federal Ministry of Environment are involved in the development of the Project. о International development agencies and climate change funds including the EU, UNCCD and Mirova have indicated interest in funding feasibility studies. ○ National and international agriculture firms and funds have indicated interest in investing in the Projects once the feasibility studies are validated. 44#45Project Implementation Ogun State Land Degradation Neutrality Project: Project Structure OGUN STATE Nigeria Sovereign Investment Authority Project development stage Nigeria LAFARGE NIGERIA 4 A member of LafargeHolcim Land provision 50% of development capital Sponsoring Feasibility Study European Union Sovereign Investment Authority 50% of development capital Ogun State Land Degradation Neutrality Trust Other Feasibility Study Sponsors Investors Waste to Energy Project SPV Land Degradation Neutrality Project SPV Bio Fertilizer Project SPV 45#46Outlook Section 1 Section 2 Section 3 Section 4 Executive Summary NSIA Background and Structure NSIA in Global Context Financial Results Section 5 Corporate Governance Section 6 NSIA Funds Overview Section 7 Section 8 Outlook Appendices 2 5 14 19 23 28 28 46 46 48 Nigeria Sovereign Investment Authority 46#47Nigeria Sovereign Investment Authority Outlook 1 2 3 4 5 6 Market analysts predict that global market volatility will continue in 2018. However, NSIA will maintain its strategy of a diversified portfolio to drive returns and mitigate the market volatility. In 2018, we plan to increase domestic infrastructure investments in line with the Presidential Infrastructure Development Fund (PIDF) initiative to address five critical infrastructure projects in the country: Mambila Hydro-Power project, Lagos-Ibadan Expressway, Second Niger Bridge, Abuja-Kaduna-Kano Highway, and East-West Road. We will continue to focus on the execution of critical infrastructure initiatives such as the delivery of one million metric tons of NPK 20:10:10; provision of credit enhancement to project companies; the Nigeria Customs Single Window project; revitalization of the Nigeria Commodities Exchange and modernization of the Healthcare sector. NSIA will continue to focus on "Social Infrastructure" investment in the form of: ■ affordable housing (through Family Homes Fund Limited); education (through Bridge Academies); environmental protection, (through the Ogun State Land Reforestation project) to be replicated nationwide; healthcare (through development of specialist hospitals and diagnostic centres); small scale agriculture and processing (through investment in Babban Gona and Novum farms). The Authority will increase its commitment to the development of institutions that will enhance infrastructure investments in Nigeria. Continue to position NSIA as a trusted and preferred partner for foreign investors looking to access attractive co-investment opportunities for infrastructure development in Nigeria. 47#48Appendices Section 1 Section 2 Section 3 Section 4 Executive Summary NSIA Background and Structure NSIA in Global Context Financial Results Section 5 Corporate Governance Section 6 NSIA Funds Overview Section 7 Section 8 Outlook Appendices 2 5 14 19 23 28 28 46 46 48 48 Nigeria Sovereign Investment Authority 48#49NIF Projects: Catalyzing Expertise and Capital Project Project Size NSIA Contribution FDI Contribution FAFIN FUND FOR AGRICULTURAL FINANCE IN NIGERIA FAFIN UFF AFRICAN AGRI INVESTMENTS OLDMUTUAL INVESTMENT GROUP Agriculture Fund FEDER RAL REFE Nigeria Sovereign Investment Authority FEPSAN Fertilizer Pods & Suppliers Association of Nigeria Fertiliser Project GuarantCo Guarantees for Development Infrastructure Credit Guarantee Ltd. (ICGL) THE ABRAAJ GROUP Abraaj Growth Markets Health Fund (AGHF) US$77.5mn US$7.5mn US$70.0mn US$100.0mn US$25.0mn US$25.0mn US$286.4mn US$43.8mn N/A US$200.0mn US$25.0mn US$100.0mn US$1.0bn US$25.0mn US$500.0mn Description Nigeria Sovereign Investment Authority Agriculture-focused investment fund that provides tailored capital and technical assistance solutions to commercially-viable SMEs and intermediaries across the agricultural sector in Nigeria. FAFIN was initiated by the German development bank - KfW, and the Nigerian Federal Ministry of Agriculture and Rural Development ("FMARD"). In 2016, UFF African Agri Investments B.V. ("UFF") and NSIA (Pty) Ltd ("NSIA") formalised their partnership in establishing a private investment fund dedicated towards investments in Nigerian agriculture, and have since taken the necessary actions to formalise their relationship and to commence establishing and promoting the first Old Mutual-NSIA Nigerian Agricultural Fund ("the Fund"). NSIA to provide stop-gap funding to finance the importation of DAP (Phosphate) and MOP (Potash) to blend 400,000 metric tonnes of NPK fertiliser. NSIA will recover its stop-gap funding once funding arrangements are in place between CBN and SPV. NSIA and GaurantCo are working together to establish the Infrastructure Credit Guarantee Ltd (ICGL). The Infrastructure Credit Guarantee Ltd (ICGL) will provide credit enhancement solutions to project companies, raising senior debt in the form of bonds to finance vital infrastructure projects. NSIA is considering an investment into Abraaj's Growth Markets Health Fund (AGFH). Abraaj has set up this fund with the aim of establishing affordable high-quality health systems for the low and middle income groups, predominantly in Africa and Asia, whilst creating maximum impact. Other investors and potential partners in this fund include IFC (US$150.0M) and Bill & Melinda Gates Foundation. 49#50Manager Overview (Future Generations Fund) Fund Manager Lead Portfolio Manager Region of Domicile Date of Fund Inception 2017 Returns NSIA's NAV $(min) NSIA Inception Edgbaston (Asia) Charu Fernando London, U.K. 1-Oct-2008 10.03% 15.7 2-Jun-2014 Somerset (Small- Mid Cap) Timothy Hay Singapore 31-Mar-2011 14.70% 13.8 Prince Street (Institutional) Prince Street (Opportunities) Nigeria Sovereign Investment Authority 31-Mar-2014 31-May-2014 31-May-2014 Fund Strategy Edgbaston is a boutique manager focused on Asia Pacific ex Japan. Edgbaston was founded in 2008 and adheres to a value investing philosophy. They are diversified with 60- 80 holdings. Edgbaston has been disciplined in limiting growth in its asset base, ensuring they can continue investing across the market сар spectrum. Somerset is a London-based EM equity boutique founded in 2007. The team came from Lloyd George, where they ran a longstanding EM fund. The small/mid cap fund at Somerset focuses on an under-covered market segment that includes niche, smaller cap companies, smaller EM countries, and frontier markets. PM Timothy Hay is based in Singapore. Prince Street was founded by David Halpert, who has been investing in frontier markets for roughly 20 years (11 years at Prince Street). His team has visited companies in over 50 countries and speaks diverse languages including Indonesian, Mandarin, Portuguese, and Russian. With an allocation of approximately 10% in small-caps. Prince Street was founded by David. Halpert, who has been investing in frontier markets for roughly 20 years (11) years at Prince Street). His team has visited companies in over 50 countries and speaks diverse languages including Indonesian, Mandarin, Portuguese, and Russian. With an allocation of approximately 10% in small-caps. Fund Logo EDGBASTON INVESTMENT PARTNERS SOMERSET CAPITAL MANAGEMENT PRINCE STREET Capital Management PRINCE STREET Capital Management David Halpert New York, U.S.A. 1-Oct-2011 3.41% 9.02 New York, David Halpert 1-Nov-2006 5.35% 14.01 U.S.A. 50 50#51Manager Overview (Future Generations Fund) Fund Manager Lead Portfolio Manager Region of Domicile Date of Fund Inception 2017 Returns NSIA's NAV $(min) NSIA Inception Cevian Capital Christer Gardell & Lars Förberg Stockholm, Sweden 1-Jul-2006 17.18% 15.4 31-Dec-2013 Chieftain Capital Management, Inc. John Shapiro New York, U.S.A. 1984 7.27% 17.1 6-Oct-2014 Marathon Asset Management Bill Arah New York, U.S.A. 31-Dec-1987 2.41% 16.1 Fund Strategy Nigeria Sovereign Investment Authority Fund Logo Cevian has a long-term view on its holdings with an average holding period of three years, and typically takes substantial stakes in portfolio companies in order to add value through improvements in operations, corporate governance and balance sheet. management. A Cevian Capital Chieftain is a US equity manager based in New York. The manager runs а concentrated portfolio of 8-12 positions, has a value orientation, and exhibits a long-term investment horizon. Alignment of interests is strong, with 100% of the investment team's liquid assets in the fund. Chieftain Capital Management, Inc. 31-Mar-2014 Marathon is α contrarian manager focussed on Japan and based in London. Arah is an old fashioned investor with a long-term approach, allowing him to capitalise on market volatility. He believes in the 'capital cycle' approach, i.e. sectors with high return prospects will attract excessive capital and hence increased competition. MARATHON Asset Management Jamison Koppenberg Stephen Jamison New York, U.S.A. 1-Apr-2009 11.22% 16.2 30-Sep-2014 Capital Group Tim Armour California, U.S.A. 10-Jan-2007 8.39% 14.4 The Koppenberg fund is an absolute return oriented macro fund that invests both long and short across commodity futures, including energy, metals, and agriculture. It is structured to minimise losses, maintain liquidity, and exhibit low correlation to commodity indices (including oil prices). JAMISON CAPITAL PARTNERS 2-Jul-2014 A pioneer in emerging markets, Capital International has invested in EM equities since 1986.The ETOP product uniquely integrates EM equity and debt and was launched in 2007. The split between equity and debt varies over time and is a residual of fundamental analysis. CAPITAL GROUPS 51#52Manager Overview (Future Generations Fund) Fund Manager Lead Portfolio Manager Region of Domicile Date of Fund Inception 2017 Returns NSIA'S NAV $(min) NSIA Inception Fund Strategy AQR Style Premia Cliff Asness Connecticut, U.S.A. 1-Sept-2012 -1.35% 25.7 16-Jan-2015 Fund Master JHL Capital Group Fund Jim Litinsky Chicago, U.S.A. 1-Aug-2006 -18.46% 23.4 Arbiter Partners Paul Isaac London, U.K. 1-Apr-2001 12.59% 25.4 Nigeria Sovereign Investment Authority Fund Logo AQR was founded in 1998 by Cliff Asness, David Kabiller, John Liew and Robert Krail. The firm offers a variety of quantitatively driven alternative and traditional investment vehicles to both institutional clients and financial advisors. AOR 31-Dec-2013 Founded in 2006 by Jim Litinsky, JHL invests both long and short across primarily liquid equities but also across fixed income and derivatives. The manager employs deep fundamental analysis and is not constrained by sector or geography. Net exposure will fluctuate over time, and the fund has recently been net short. JHL has traditionally exhibited low correlation to other hedge fund managers. J 28-Feb-2014 Founded in 2001, Arbiter is an opportunistic, value-oriented long/short equity hedge fund. The manager employs a long-term approach to investing and has historically demonstrated a strong US bias. Exposures tend to be aggressive in both net (0.5-1.2x) and gross (1.7-3.0x) terms. Arbiter is willing to invest in thinly traded and micro-cap securities, taking advantage of inherent inefficiencies. The risk/return profile is high, with annualised returns since inception of 19.0%, but with cumulative drawdowns as high as -41% over a 7 month period. A ARBITER FUND MANAGERS Blue Mountain Andrew Feldstein & Stephen Siderow New York, U.S.A. 1-Nov-2003 5.98% 27.2 31-Dec-2013 Blue Mountain is a multi-strategy / relative value credit fund founded in 2003. The fund covers three primary strategies (long/short credit, structured credit, and index arbitrage), exploiting investment opportunities that arise at the intersection of different security types, e.g., where traditional credit investors are restricted by artificially imposed boundaries such as rating or geographic restrictions. Blue Mountain exhibits a low to moderate risk/return profile. Blue Mountain CAPITAL MANAGEMENT LLC 52 52#53Manager Overview (Future Generations Fund) Fund Manager Lead Portfolio Manager Region of Domicile Date of Fund Inception 2017 Returns NSIA's NAV $(min) NSIA Inception Xenon VI Private Equity Danilo Mangano London, U.K. N/A -10.2% 1.4 Fund Strategy Xenon pursues small-cap buyouts in Italy. The core team has been investing together for more than ten years and has members with strong industrial, operational and consulting backgrounds. The fund (€180m) targets a 3.0x gross 5-Aug-2014 multiple and a 30% gross IRR. The manager approaches entrepreneurs directly, thereby often avoiding competitive processes. The manager has committed 5% of the total fund size, which is above market standard and reflects a strong alignment with LPs. Fund Logo X Nigeria Sovereign Investment Authority XENON Private Equity Z-Capital Special Situations II James J Zenni Jnr New York, U.S.A. N/A 17.19% 8.6 15-May- 2014 Helios III Investment Partners LLP Tope Lawani & Babatunde Soyoye London, U.K. N/A 10.66% 2.4 Z Capital III (North America). Z Capital was formed in 2007 by James Zenni, who has more than 15 years of experience in distressed investing. The manager has raised $750m for its second fund to make distressed for control investments in North American 'troubled' companies. The team has a niche strategy of investing in complex loans that fly 'under the radar' of other distressed managers. The fund is targeting a 2.5x gross multiple and a 35% gross IRR. NSIA benefitted from an immediate write-up by coming in at cost despite a 1.5x valuation of the $113m that had been deployed to date. Z CAPITAL PARTNERS 21-Oct-2014 Helios was founded in 2004 by Tope Lawani and Babatunde Soyoye, both Nigerian nationals who were previously at TPG. Helios has raised $1.1bn to invest across Africa in Fund III. The team has a combination of private equity, consulting and operational backgrounds, allowing them to invest opportunistically across buyout transactions, growth equity, and start-ups. Helios is targeting a 3.0x multiple. The team has committed 1% of total commitments to Fund III. HELI S INVESTMENT PARTNERS 53 33#54Manager Overview (Future Generations Fund) Fund Manager Lead Portfolio Manager Region of Domicile Date of Fund Inception 2017 Returns NSIA's NAV $(min) NSIA Inception African Capital Alliance Private Equity IV Paul Kokoricha & Cyril Odu Lagos, Nigeria N/A -20.69% Secondary Private Equity: KG Brussels 16 Fund Holdings: Avenue Special Situations Fund IV, L.P. • Cerberus Institutional Partners, L.P. Series Four • Fortress Investment Fund IV, L.P. • Fortress Investment Fund IV Coinvestment, L.P. • Fortress Investment Fund V, L.P. • Fortress Investment Fund V Coinvestment, L.P. • H.I.G. Bayside Opportunity Fund, L.P. Marlin Equity, L.P. • Marlin Equity II, L.P. • OCM Opportunities Fund IVb, L.P. OCM Opportunities Fund VI, L.P. • OCM Opportunities Fund VII, L.P. • OCM Opportunities Fund VIIb, L.P. •Sun Capital Partners IV, LP •Wayzata Opportunities Fund, LLC •Wayzata Opportunities Fund II, L.P. 3.2 32 Fund Strategy Nigeria Sovereign Investment Authority Fund Logo 15-Nov-2015 ACA was founded in 1997 under the leadership of Okey Enelamah and Dick Kramer. With more than 15 years of investing experience in Nigerian private equity, ACA benefits from its strong brand name and deep connections. ACA maintains flexibility to invest in buyout and growth equity deals in companies of various enterprise values and avoids companies subject to competitive auction processes. Fund IV has targeted $600m to invest across West Africa, seeking a 3.0x multiple and a 30% IRR. A Abuja, Nigeria 15-Aug-2014 N/A 47.9 Healthcare Royalty Gregory B. Brown & Todd C. Davis Stamford, U.S.A. 2007 N/A 0.3 Partners III 15-Aug-2014 NSIA created this vehicle for transactional and tax efficiency purposes relating to the acquisition of a portfolio of private equity interests from a European banking counterparty. This portfolio has performed exceptionally well both in terms of cash distributions and in terms the absolute revaluation gain. It is expected that 99% of the portfolio will be liquidated by year end 2018. KGBrussels.P 15-Aug-2014 HCRP was founded in 2007 by the royalty team formerly at Paul Capital. Healthcare royalties offer high yield (low- to mid-teens, thereby mitigating the J-curve effect) with downside protection in the form of capital structure seniority. Returns are linked to healthcare product sales, which are generally stable and exhibit low correlation with other asset classes. Fund III has raised $1.5bn and is targeting a 1.6-2.0x multiple and a gross IRR of 15-18%. HEALTHCARE ROYALTY PARTNERS™ 54 ....#55Manager Overview (Future Generations Fund) Fund Manager Lead Portfolio Manager Region of Domicile Date of Fund Inception 2017 Returns NSIA's NAV $(min) NSIA Inception Verod Capital Management Danladi Verheijen & Eric Idiahi Lagos, Nigeria. N/A N/A 1.5 22-Sept-2015 Synergy Capital Ayo Arogbo & Toye Akindele Lagos, Nigeria. N/A N/A 4.2 Falko Jeremy Barnes New York, U.S.A. N/A N/A 5.87 RMB Westport Mike O'Mailey & Dale Ramsden Johannesburg, South Africa. N/A N/A 0.6 Nigeria Sovereign Investment Authority 09-Sept-2015 17-Sept-2015 03-Feb-2016 Fund Strategy Verod are a Lagos based private equity manager focused on investing in a mix of greenfield and SME opportunities predominantly in Nigeria, and the scope to invest in Ghana. Founded in 2008, by principals Danladi Verheijen and Eric Idiahi, who each own 40% of the entity, with the final 10% owned by Emeka Emuwa (GMD Union Bank of Nigeria). Verod have. a track record in investing on behalf of high-net worth individuals, but also providing advisory services. Synergy Capital is a Lagos based General Partner (GP) founded in 2007. The Fund is focused on small and medium sized businesses only, targeting growth opportunities, investing equity and quasi-equity in these businesses. This Fund is a South-West Nigeria focused offering, with a target 25% weighting to Ghana (with a maximum of 30%). Target sectors include: consumer businesses, power, IT & telecoms, non-bank financial services, oil & gas and agro-allied businesses. Fund Logo Capital VEROD Management Falko is the largest independent operator lessor of regional jet aircraft in the world, and this fund is an extension of Falko's current aircraft leasing and management activities. The Fund would make equity investments in new and used leased regional aircraft (fewer than 149 seats) operating globally. The fund is targeting a a 17% to 20% gross IRR and 7% to 8% annual yield. Each asset will have lessor-friendly triple net leases attached or pre-negotiated, which create an obligation on the part of the lessee to pay an amount of the contracted monthly rent, while at the same time providing security over the assets. Mike O'Malley, Dale Ramsden and Simon Fifield founded RMB Westport in 2008, Dale was instrumental in both the Palms and Ikeja Mall, and Mike heavily involved as the developer on the Ikeja Mall. This duo have a justifiably solid reputation in the West African real estate market. Simon Fifield was previously head of RMB's real estate investment banking division. The Fund targets a 25% net IRR and a 2x grossl multiple over the 8 year fund life with a 4 year investment period. This fund will be focused across four markets, Nigeria, Ghana, Angola and Ivory Coast. Target equity investment per project is $20m $60m, with 50% - 60% leverage. V SYNERGY CAPITAL FALKO RMB westport Building Prosperity 55#56Manager Overview (Future Generations Fund) Fund Manager Lead Portfolio Manager Region of Domicile Date of Fund Inception 2017 Returns NSIA'S NAV NSIA Inception $(min) Unigestion Christian Bohler Zurich, Switzerland. N/A N/A 5.5 55 Abraaj Growth Healthcare Fund Dubai, UAE. Khamaar Mann and Mark Bourgeois N/A N/A 5.6 Actis Real Estate Louis Deppe and Amanda Jean-Baptiste Lagos, Nigeria N/A N/A 1.7 Fund III Nigeria Sovereign Investment Authority Fund Logo 15-Dec-2017 14-Feb-2017 Fund Strategy Akina is a European market focused private equity firm, founded in 1998, and has managed €2.6bn in nine fund generations and is based in Zurich. Akina Euro Choice secondary fund has a fund size of €225m. Akina has been a successful investment platform in the European mid-market space, largely due to its broad sourcing coverage which gives it access to top performing funds, akina @ disciplined investment process with systematic UNIGESTION and comprehensive analysis and active exit management. The AGHF will provide growth capital to emerging markets healthcare companies that serve low to middle income populations. The fund has a strong impact focus with a long-term goal of developing healthcare ecosystems that deliver affordable, high- quality healthcare services to previously underserved markets. The majority (80%) of capital is expected to be invested in select cities in Sub-Saharan Africa and South Asia with up to 20% in Latin America and Southeast Asia. The Abraaj Group is a global emerging markets private equity firm founded in 2002 THE ABRAAJ GROUP 15-Aug-2015 Actis was founded in 2004 following a spin- out from the CDC group. Actlis manages over $6bn in assets across real estate, PE, energy and infrastructure. The Real Estate Fund 3 is developmental focused, predominately in the retail and office sectors. The Fund will invest alongside local partners, but the GP will retain a majority stake in such instances. The fund will hold assets for three to five years, thereafter exiting to a strategic buyer. The Fund will invest in the main urban cities in select countries in sub-Saharan Africa, with a focus on Nigeria, Ghana, Kenya, Mozambique, Tanzania, Zambia, and the Ivory Coast. actis 56#57Manager Overview (Stabilisation Fund) Fund Manager Lead Portfolio Manager Region of Domicile Date of Fund Inception 2017 Returns NSIA's NAV $(min) NSIA Inception UBS (Passive 1-3 Year US Treasuries) Benjamin Kaden Zürich, Switzerland 2-Feb-2012 0.79% 13-Sep-2013 81.2 Smith Graham and Co (Enhanced Cash) Mark Dube Houston, US 2-Feb-2012 0.1% 20.0 IR+M (1-5 Year Rob Lund Boston, US 2-Feb-2012 0.1% A or Better) 24.0 Nigeria Sovereign Investment Authority 11-Dec-2017 11-Dec-2017 Fund Strategy Fund that holds 1-3 year Treasuries benchmarked against the 1-3 Year Treasury index. UBS manages its passive fixed income products with the goal of minimizing tracking error and transaction costs. Smith Graham runs the enhanced cash management product, which is 100% made up of asset backed securities. The strategy focuses on short-dated AAA rated securities with the aim of optimizing income, maintaining sufficient liquidity and capital preservation. The strategy is a conservative, high quality, short duration credit strategy that relies on the Firm's value- oriented, bottom up investment approach. The portfolio is comprised primarily of credit and asset backed securities and has a marginal exposure to government instruments and municipals. IRM Fund Logo UBS INCOME RESEARCH MANAGEMENT 57#58THANK YOU www.nsia.com.ng Nigeria Sovereign Investment Authority