#1ICHE PRESENTATION Indonesia Infrastructure Small Caps SDG a NJ project October 2023 Class A - IE0006KCMUK2 ISIN Class IIE00090QU6T7 Class Q (listed class) - IE000R9RIBW8#2NJ Indonesia Infrastructure Small Caps SDG -> -> t -> t ->> ->>> The only Investment Vehicle which offers a pure, deep value, and diversified exposure to Indonesian Small Caps UCITS fund daily liquidity Engagement fund - SFDR Art. 8 - 90% sustainable Stock holdings: 80/120 Average Market Capitalisation: US$ 580 mln Median Market Capitalisation: US$ 249 mln unique revesting ->>> Max AUM of the project 20 mln euro -> No management fees, only performance fees (absolute with HWM - no reset) ICH E NGLE -> Fund Managers: Massimo Baggiani & Andrea Andreis 2#3Indonesia outlook is bright. Many are the catalysts#4A story of Infrastructure • Many of today's infrastructure have been built by Dutch . Some have been built by General Suharto • Most are being built... Elevated Jakarta-Cikampek Toll Road 222 Source: Jakarta Globe Arrival of a train in Bandung in 1907 Aankomst sneltrein, Bandgeng. Source: National Museum of World Cultures Focusing on • Connecting Indonesia . Maritime Ambitions Energy • Water . Industrial Infrastructure • Residential Infrastructure NICHE JUNGLE#5A story of Infrastructure Some have been completed ... . . 130 Projects completed between 2016 and first half 2022 50 BLN $ spent Amongst them: Mass transit in Jakarta National Strategic Projects Completed in 2016 Completed in 2017 10 Projects (USD 4,27 B) • Trans Java Toll Road • Kuala Tanjong Sea Port in Sumatra • 10 Bali Project ⚫ 7 Airports 1 Toll Roads 6 Dams 1 Seaport 1 Gas Pipeline ⚫ 2 Toll Roads 1 Access Road 1 Airport 1 Gas Facility 3 Border Dev. ⚫4 Border Dev. . 1 Dam . 1 Irrigation Competed in 2018 32 Projects (USD 14.43 B) .2 Railway 4 Dams 1 Irrigation 10 Toll Roads . 5 SEZ ⚫ 1 Aiport 4 Ind. Estate Completed in 2019 30 Projects (USD 11,5 B) ⚫ 4 Airports 4 Dams ⚫9 Toll Roads .4 Smelter 1 Marine Agriculture ⚫ 6 Ind. Estate ⚫ 2 Railway ⚫ 1 Seaport ⚫ 2 Smelter ⚫2 Technology Completed in 2020 12 Projects (USD 8,57 B) ⚫ 1 Airport 1 Railway ⚫ 3 Toll Roads . 1 Seaport 1 Cleanwater Supply 3 Ind. Estate .2 Dams Source: Committee for Acceleration of Priority Infrastructure delivery (KPPIP) National Completed in 2021 24 Projects (USD 6,2 B) ⚫ 6 Toll Roads 2 Cleanwater Supply 11 Dams 1 Seaport 1 Technology 1 Housing 1 Railway .1 Ind. Estate NICHE JUNGLE#6A story of Infrastructure most are about to start . 208 Projects from the second half 2022 and 2025 National Strategic Projects • 400 BLN $ to be spent (about 35% of GDP) Amongst them: • Relocation of Capital • Trans Sumatra Toll Road • Java High Speed Railway Jakarta Sea Wall Project Equitable Development of Islands to unleash long term growth 44 Projects Sumatera USD 54,13 B 16 Projects Kalimantan USD 35,17 B *) based on Coordinating Minister Regulation No. 7 /2021 1 84 Java Program Pots USD 137,07 B A Toll Road 56 Projects 9 12 Drogram Projects National USD 107,33 B 22 Projects Sulawesi 10 Tejects Maluku & Papua USD 39,43 B USD 19,278 20 Projects Bali & Nusa Tenggara USD 4,08 B PSN covers 12 sectors and 10 program Industrial Estate Railway 16 Projects Energy Seaport Water & Sanitation 15 Projects 16 Projects 12 Projects Dam & Irrigation 57 Projects 19 Projects Smelter Program Superhub Program Electricity Program Economic Equity Program Toll Access Program Technology Housing Sea Wall 5 Projects 2 Projects 1 Proyek Source: Committee for Acceleration of Priority Infrastructure delivery (KPPIP) Food Estate Program Border Dev. Program National Tourism Program ✓ Airport 8 Projects Education 1 Project Waste to Energy Program NICHE JUNGLE#7. A story of Infrastructure ... most are about to start - 2 2.5 Housing demand is strong, 2.0 housing credit is dramatically 1.5 low, rental yields are high 1.0 Potential for residential infrastructure Developing renewable energies 600 3.5 Singapore 44.8% ENERGY POTENTIAL (MW) UTILIZATION 500 Malaysia 38.4% 3.0 Thailand 22.3% (MW) 400 SOLAR 400,000 182.3 300 HYDRO 90,000 6,286.7 200 100 BIOENERGY 45,000 1,916.4 0.5 WIND 60,600 154.3 GEOTHERMAL 23,700 2,175.7 97 98 99 100 101 102 103 104 105 106 107 08 09 10 11 12 13 14 15 16 17 18 19 20 IDR trillions (left scale) % of GDP (right scale) Source: Bank of Indonesia Global Property Guide OCEAN 18,000 0 NUCLEAR 11,000*) 0 KPPIP target Investment Proportion in (US$bn) TOTAL 648,300 10,715.4 Source: esdm.go.id 2025 target to use 23% (current 11%) of its energy from renewables by 2025 Only 1.65% of the potential used 69% 11% Funding . State Budget Funding - 11% • State Owned Enterprise funding - 20% 20% ■State Budget 44 SOE Budget 79 Private 273 Source: Coordinating Ministry for Economic Affairs Public Private Partnership schemes - 69% Further funding from National Sovereign fund (US$10bn) Target corpus is US$ 100bn NICHE JUNGLE#8A story of Demography Indonesia's Population by Age Groups, 1971-2020 (in millions of people) Working-age group percentage of the population 2020 300 80 • A Populous Country 250 Young Population Good demography 200 • Low density 150 • Tame Islamic country 100 . Growing Middle Class 50 Intra-ethnic fights have subsided 0 1971 1980 1990 2000 2010 2020 Source: Statistics Indonesia Indonesia 70.7% China 70.5% Vietnam 69.3% India 67.2% Russia 67.1% above 65 years old Japan 59.2% ■15-64 years old Source: World Bank ■0-14 years old NICHE JUNGLE#9A story of Natural Resources MILU ON TONNES Agriculture Trade Forestry Fisheries Top Ten Global Capture Producers, 2018 16 14 12 15% 23% 30% 41% 49% 55% 70 OF GLOBAL CAPTURES (CUMULATIVE PERCENTAGE) Basic Materials for EVs batteries World's largest Nickel Reserves (in millions of tonnes) Philippines Cuba Russia Brazil Australia Indonesia S Source: US Geological Survey 16 20 21 10 15 20 25 Global demand for Nickel for EV battery use (in 1000 MT) 800 700 600 500 400 300 CHINA INDONESIA PERU INCIA RUSSIAN UNITES STATES VEMA JAPAN NORWAY CHLE FEDERATION OF AMERICA 200 Inland waters captures Marine waters captures Share of global captures (cumulative%) Source: FAO The country uses only 8% of its 93,000 sq. km of inland waters for fishing EV battery is 7% of Nickel consumption 100 60 Source: Statista 2022 665 2018 2025 Tourism Indonesia Monthly Tourist arrivals 1600000 a strong recovery expected....from a very low base 1400000 1200000 0 2012 2014. 2016 2018 2020 Source: Tradingeconomics.com Population Density per sq. km Source: Wikipedia 1000000 800000 600000 400000 200000 Indonesia 144.42 Thailand 136.32 Vietnam 296.38 India 423.88 NICHE JUNGLE#10• A story of Financial Crisis The hardest hit country during the Asian Financial crisis of 1997 Jakarta Stock Index (US$) during the crisis > JAKARTA COMPOSITE INDEX Index GP Related Functions Menu JCI 17026.256 +2.07% At 9:15 0 6948.226 H 7032.822 L 6938.293 Prev 6883.504 X[ JCI Index 07/01/1997-07/31/1998 Last Px 1D 3D 1M 6M YTD 1Y 5Y Max Daily ▼ The equity market lost over 90% in dollar terms in a year • Small caps wiped out • Few banks survived • Changed the perception of the equity market Created a mantra that small caps are un-investable • Opened the door to a sustainable democracy 120 Volume 177.994M Oct 1997 Message 口ˋ 96) Actions 97) Edit ▾ Line Cha Mov Avgs Key Events Table +Quick-Add Add Data «Edit Chart +Track Annotate News Zoom Last Price 0.03622 High on 07/08/97 0.30449 Average 0.30 0.10804 -92% Mar Apr 1998 Collapsing Currencies (against USD, July 1 1997-100) 100 80 60 Thailand Korea 40 Indonesia Philippines Malaysia 20 Taiwan Source: Bloomberg Singapore Aug-97 Sep 97- Oct-97 Nov-97- Dec-97- Jan-98 - Feb-98 - Mar-98 Low on 06/17/98 0.02597 0.25 0.20 0.15 0.10 0.036 18 0.5B NICHE JUNGLE#11A Story of financial & political discipline • Low public debt and inflation Government Debt to GDP • Reliable Central Bank • Solid banking system 87.43 • Reliable companies' financial statements • Functioning democratic system Stable government 2000 73.7 Consumer Price Inflation Y-o-y % changes 100 20 Indonesia 38.5% Brazil 75.8% 18 India 69.6% 16 China 66.8% 80 Thailand 50.5% 14 Turkey 39.5% 62.33 12 55.64 60 10 51.32 8 42.61 38.5 6 35.84 40 32.33 30 29.4 30 30.5 4 27 26.48 23.1 22.96 24.8 24.7 2 20 2004 2008 2012 0 2016 2020 2002 Source: Trading Economics Indonesia Other G20 EMEs¹ Mr 2005 2008 2011 2014 2017 2021* Source: OECD Economic Survey Indonesia 2021 NICHE JUNGLE#12A story of reforms Job Creation Law 2023 . Streamlining labour laws • ● Simplifying licensing process for business Lifting of restrictions on foreign investment Simplifying the provisions of the Taxation Joko Widodo Source: Bloomberg NICHE JUNGLE#13A story of growth • • Good past growth 2.000 Indonesian GDP trend from 1986 to 2026E 1750 • • Potential for credit growth . Potential to increase FDI trade surplus (already in) A chronic trade deficit turning into a 1500 1 250 1.000 500 250 101.22 138.26 190.91 274.72 15.32 174.51 1986 255.43 755. 558.58 396.29 892.59 891.05 1988 1990 1992 1994 1996 . • Tourism expansion Growth in high value industries Source: Statista Research 1998 2000 2002 2004 2006 2008 2010 2012 2014 2016 2018 2020 2022" • Supply chain diversification from China A story of catch-up: Indonesia shares with India economic model based on internal consumption, a good demography. India small caps rerated from during 2009-2023 Mar-02: Dec-02 Sep-03 Jun-04 Mar-053 Dec-053 Sep-06 Commodity price rally improves Indonesia's terms of trade FDI (US$ billion) Not incl. Oil & Finance Energy & constr. --Primary 2024 2026* 0.9 1561.9 1458-14 0.8 1 360 26 1256.28 0.7 1 120.04 1015.49 0.6 0.5 0.4 0.3 0.2 0.1 0 FDI (as % of GDP) Not incl. Oil & Finance Indonesia ASEAN Thailand Malaysia ASEAN (ex SG) % yoy 20.0 15.0 10.0 Commodity index (Nickel + Coal + CPO), end-2004 100-RHS Current account, % of GDP (RHS) -Balance of payment, % of GDP (RHS) Source: CIMB research Credit Growth Profile Jun-16 Mar-17 Dec-17 Sep-18 5% 180 160 0% 140 -5% 120 100 -10% 80 60 40 20 0 2004 2005 2006 5.0 0.0 -5.0 10.0 Jan-15 Jul-15 Jan-16 Jul-16 Jan-17 Jul-17 Sources: Financial Services Authority, Bank Indonesia Jan-18 Jul-18 Jan-19 Jul-19 Total Growth Working Capital Loans Investment Loans Consumption Loans Jan-20 Jul-20 Jan-21 Mar-21 May-21 Jul-21 Sep-21 Nov-21 Jan-22 2007 2008 2009 Indonesia 5.19% 7.68 7.0% Vietnam 6.03 11.7% 5.58 Malaysia 6.65 Thailand 20.0% Mar-22 Philippines 22.5% Tourism as a % of GDP 2019 Source: OECD Investment Policy Reviews: Indonesia 2020 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 Manufacturing Services Potential to increase value added manufacturing Source: World Travel and Tourism Council NICHE JUNGLE#14A story of catch-up • Indonesia shares with India an economic model based on good demography and internal consumption. . India small caps rerated from 8 times to 24 times earnings during 2009-2023 . . Most of this rerating has occurred in the last two years MXINSC Index (MSCI INDIA SMALL CAP) 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2007 2008 Source: Bloomberg Today Indonesian small caps trade below 10 times earnings F60 -50 -40 -30 -20 -10#15A valuation anomaly in an already very attractive market Indonesia's outlook is bright: country should significantly outperform in terms of growth over the next 10 years Indonesia's valuation are interesting Average GDP In Indonesia there is a valuation anomaly: the small cap universe This asset class is trading: at depressed levels in absolute terms despite the rosy growth outlook at a huge discount to the big caps (see next slide for few examples) PE'23 growth '23-27E India Small Cap 23,5x 6,5% India 20,1x 6,5% Thailand 16,3x 3,6% Indonesia 13,8x 5,2% Malaysia 13,3x 4,4% Philippines 12,0x 5,8% ... Singapore 11,6x 2,6% Vietnam 11,1x 7,0% Indonesia Small Cap 9,9x 5,2% Indonesia Infrastructure Small Caps SDG Portfolio 7,7x 5,2% and the fact that there are no financial products on this asset class is clearly one of the reasons Source: Thomson Reuters, NicheAM NICHE JUNGLE#16Indonesia Small Caps trade at huge discount to big caps. This undeserved discount will close in the future, as it was the case in India. Here below few examples Banks: Danamon (small) Vs. BCA (big) P/BVT PE -87% Consumer Staples: Tempo Scan (small) Vs Unilever Indonesia (big) P/TBV '22 EV/SALES BCA 4,8x 0% Danamon -20% EV/EBITDA PE P/TBV 0,6x P/E'22 -40% -64% Danamon CAR* 29.5% -60% BCA CAR* 24.5% -80% Unilever Indonesia Tempo Scan * CAR: Capital Adequacy Ratio -100% -86% -78% -76% 26,2x 6,4x -98% !!!! Real estate: Lippo Cikarang (small) Vs Metropolitan KJ (big) Cement: Wijaya Karya Beton (small) Vs Indocement (big) EV/SALES EV/EBITDA P/TBV 1!1 0% Ratio P/TBV: -10% Lippo Cikarang: 0.34 x Metropolitan KJ 4,0 x In both cases, high -20% quality real estate assets and debt- free -30% -40% Discount >90% -50% -60% -70% -80% -90% -87% -100% Source: Thomson Reuters, NicheAM as of 30/09/23 -71% -45% -72% P/E'22 Indocement 18,7x Wijaya Karya Beton 10,2x Huge discount ... despite their comparability NICHE JUNGLE#17The portfolio of NicheJungle project is trading at levels even lower than those of the small caps index as a whole, despite being focused on the country infrastructures, the most promising area, and being characterized by low leverage (hence lower risk) EV/EBITDA PE PBVT 0.7 Dividend Yield % Source: Thomson Reuters, NicheAM as of 30/09/23 3.0 3.4 About 80 stocks (in a universe of 420 securities) Average capitalisation: $580m Max AUM of the project 20 mln euro 7.7 NICHE JUNGLE#18NJ Project: 75% upside on a very conservative scenario Something to look up to: the case of Indian small caps Security MXINSC Index MXIN Index MSCI INDIA SMALL CAP MSCI India Index Currency INR INR Price Change 137.34% 67.16% Total Return 137.34% 67.16% Track Annotate QZoom Difference 70.18% MSCI Small Cap India Vs MSCI India The small caps in India outperformed significantly the big caps when the outlook for the Indian market improved, in the last 3 years. We expect this to happen shortly in Indonesia Sep Dec Mar Jun Sep Dec Mar Jun Sep Dec Mar Jun Sep 2023 2022 2021 2020 Source: Bloomberg, NicheAM 140 120 100 -80 60 40 20 0 Small caps thrive in a positive economic scenario: indian small cap are now trading at a premium to the main index: 23,5x earnings '23 Upside at project closure: 75% that corresponds to 13.8x earnings, today's Indonesia big caps valuation Clearly, we do not consider a potential rerating towards India small cap (23.5x earnings, further immediate upside +70%) And we do not consider the expected mid term EPS growth (EPS growth 12%; further upside in 5 years time +70%) NICHE JUNGLE#19Indonesia Small Cap significantly underperformed the EM markets in the last 20 years • The '97 Asian financial crisis wiped out small listed companies in Indonesia, which are still viewed by local investors with distrust, although the fundamentals are today completely different • This disaffection has been maintained over the years, and this can be seen by marked underperformance of this asset class compared to equity in developed and emerging markets • There is little coverage and no financial products on this asset class but we expect this will soon change, bringing analyst coverage and visibility and...rerating Index performance MSCI Small Cap Indonesia Vs MSCI Emerging Mkts e MSCI ACWI (Dec 20057- Dec 2022; net return USD) - MSCI Indonesia Small Cap MSCI Emerging Markets 300 MSCI ACWI 200 100 300.43 173.99 58.15 0 Sep 08 Dec 09 Mar 11 Jun 12 Sep 13 Dec 14 Mar 16 Jun 17 Sep 18 Dec 19 Mar 21 Jun 22 Sep 23 Source: MSCI NICHE JUNGLE#20Indonesia Small Cap significantly underperformed the big caps index in the last 10 years MSCI Small Cap Indonesia Vs Jakarta Stock Index Security MXIDSC Index JCI Index MSCI INDONESIA SMALL CAP Jakarta Stock Exchange Composite Index Currency IDR IDR Price Change -55.97% 53.86% Total Return -55.97% 53.86% Difference -109.82% 60 -40 -0 20 -20 -40 -60 -80 Dec Mar Jun Sep Dec Mar Jun Sep Dec Mar Jun Sep Dec Mar 2014 2015 2016 Jun 2017 Sep Dec Mar Jun Sep Dec Mar 2018 Jun Sep Dec Mar Jun 2019 Sep Dec Mar 2020 Jun 2021 Sep Dec Mar Jun Sep Dec Mar Jun 2022 2023 Sep Source: Bloomberg Close to the inflection point? NICHE JUNGLE#21Risks • Political risks Delays in the infrastructure plan Environmental disasters China recession Floods in Java Island Source: Hindustan times NICHE JUNGLE#22Opportunities Short-term opportunities • . Infrastructure building led growth Trade balance improvement - Led by the Commodity cycle • Tourism recovery • China economy recovery Raja Ampat Islands, Indonesia Source Conde' Nast Traveller NICHE JUNGLE#23Opportunities Long-term opportunities Infrastructure benefits • Job Creation Law 2023 • • Consumers growth FDI Tourism growth Maritime trade growth Diversification of supply chain from China Presidential Palace at the Nusantara New Capital City in Kalimantan Source Ft.com O Nyoman Nuarta/AFP/Getty Images NICHE JUNGLE#24DISCLAIMER This document, any presentation made in conjunction herewith and any accompanying materials are preliminary and for information only. They are not an offering memorandum, do not contain any representations and do not constitute or form part of an offer or invitation to subscribe for any of Niche's funds (each, the "Fund"). Further they do not constitute or form part of any solicitation of any such offer or invitation, nor do they (or any part of them) or the fact of their distribution, form the basis of, or can they be relied on, in connection with any contract therefor. The information contained in this report has been compiled exclusively by Niche Asset Management Ltd which is authorised and regulated by the Financial Conduct Authority (RN783048) and is registered in England & Wales 10805355. The information and views contained in this document are not intended to be complete and may be subject to change at any time. 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