#1Iberis CAPITAL PORTUGAL YIELD FUND II, FCR INVESTOR PRESENTATION NOVEMBER 2021#2Disclaimer The current presentation is not intended to form a basis for (or sustain) any investment decision, and it does not purport to contain all the information that any such potential investor may require. It does not, therefore, replace the reading of the full Fund documentation and contractual documents which will be made available in final form to investors any recipient of the presentation should perform its own analysis, appreciation and validation of the investment in the Iberis Portugal Yield Fund II and the information provided. The current presentation does not represent any recommendation as to the formalization or execution of any transaction that may be described in it. No explicit or implicit guarantee is provided regarding the accuracy or completeness of the information contained in the presentation, nor is there any obligation to correct or complement it. In particular, no representation or guarantee is made explicitly or implicitly in relation to the reasonableness and/or accuracy of projections, objectives, estimates and forecasts contained in this presentation. All opinions and estimates are subject to change or revision and such change or revision does not imply an obligation to inform the recipients of this presentation of such changes. No obligation is taken to provide any additional information or update any information or conclusion included in this presentation. The information included in this document is not intended to predict actual results and no guarantees are provided in relation to them. 2#3Agenda Iberis Capital Portugal Yield Fund II 3#4Agenda Iberis Capital Portugal Yield Fund II 4#5Iberis capital was founded in 2017 by four partners with extensive investment experience LUÍS QUARESMA • PARTNER . Oxy Capital: Founding Partner Bain&Co: Manager European Private Equity Group BCG: Project Leader HBS1 AMP; CLSBE 2: MBA; Nova FCT 3 : Computer Science DIOGO CHALBERT PARTNER Capital Criativo: Director ECS Capital: Industrial Ops BCG: Principal Nova SBE: Invited Professor - Private Equity; MIT Sloan: MBA; Nova SBE: Economics JOÃO HENRIQUES PARTNER • Vodafone: CFO Group Commercial & Enterprise, CFO Portugal, Chairman VF Ventures PetroAtlantic Energy: CFO • • BCG: Principal INSEAD: MBA; IST 4: Electronics Engineering DAVID PINHEIRO PARTNER Oxy Capital: Associate Nova SBE: Teaching Assistant Nova SBE: MsC in Finance; BSC in Economics Note: 1) Harvard Business School, 2) Católica Lisbon School of Business and Economics, 3) Nova School of Science and Technology and 4) Instituto Superior Técnico 5#6Iberis capital team is well diversified, and its members have outstanding backgrounds ISABEL RODRIGUES ANALYST ⚫ BSC Economics UCP; MsC Banking and Finance St. Gallen ⚫ CMVM Internship > JOÃO SOUSA MENDES ANALYST ⚫ BSC in Economics, MSC in Finance Nova SBE > FERNANDO GONÇALVES ANALYST ⚫ BSC Industrial Eng. IST; MsC in Finance Nova SBE > LUÍSA QUEIRÓS ANALYST ⚫ BSC Economics. Nova SBE; MsC in Finance Nova SBE/ Univ. Sydney > JOSÉ JONET ANALYST ⚫ BSC Industrial Eng. IST; MsC in Finance NOVA SBE MARA MARTINS ANALYST ⚫ BSC in Economics, MsC in Finance Nova SBE RITA CORREIA LEGAL & COMPLIANCE ⚫ Associate Lawyer in CS Associados ⚫ LLB in Law, University of Lisbon; LLM in Law - Litigation, UCP > FILIPA CHOON INVESTOR RELATIONS & FINANCE ⚫ KPMG Audit ⚫ BSC Management, MsC Finance Nova SBE > DUARTE GOUVEIA INVESTOR RELATIONS & FINANCE ⚫ EY Audit ⚫ BSC Management, MsC Finance Nova SBE BEATRIZ LEITE ANALYST ⚫ Portland Hill: Investment Analyst • BSC Management, MsC Finance Nova SBE GONÇALO LUDOVICE ANALYST ⚫ BSC in Economics, Nova SBE; MSC in Finance, ESADE > JOÃO BANDEIRA ANALYST ⚫ BSC in Electronic Engineering, IST; MSC in Finance, Nova SBE MARIA VERÍSSIMO OFFICE MANAGER •BA in Languages, Literatures and Cultures with a Minor in Asian Studies: University of Lisbon 6#7Why Iberis Capital? FOCUS › Partners (and entire team) exclusively dedicated to Iberis › Investment team 100% dedicated to the execution of the funds and monitoring of the portfolio companies ALIGNMENT › Alignment of interests with >60% of net worth of partners invested in Iberis Funds › Diversified investor base with 400+ investors, none representing more than 10% of AuM GOVERNANCE › Fully independent; 100% owned by its partners, no partner holding more than 35% › Collective decision of partners in investments and management; No partner is unmovable or has special decision rights (formal or informal) HIGH PERFORMANCE TEAM › Investment team of 13 elements and support team of 4 elements > Top 10% students from leading universities 7#8Iberis has more than €235M AuM and a diversified investor base MANAGING COMPANY Yielding 8% +€245M 92% Growth, Buyout and Innovation Managing Company: Iberis Semper, Sociedade de Capital de Risco, S.A.1 INVESTORS Individuals Non-GV 4M€ Individuals GV 46M€ 16M€ Financial Investors 62M€ Family Offices 1. Register Number: 147527; available in https://web3.cmvm.pt/sdi/capitalrisco/pesquisa_scr.cfm 2. Considers investors rather than total participants, i.e., two companies in the same group are considered as one investor if they share the same decision maker +490 Investors² 67M€ Portuguese SME 53M€ Portuguese Corporations 8 00#9Iberis areas of expertise are innovation & growth, and yielding investments, having already strong results with several deals C LBT <三 Unbabel S Unbabel CODACY TEKEVER MOBRAND ogy. Yielding Investments Innovation and Growth Luxury Apparel campotec mpotec Detox Fruits and Vegetables CQs Risk Management Paços Smart Public Lighting Aerospace Technology Al Translations INFOS sharing knowledge OFOFOFTEN sensei Software ERP VIATEL Retail Automation Oloqr OFBAKE Let's create your account SARANAN Smart Grids Quarteto Co-Working Financial software Pingo Doce Qt. do Lago Supermarket Code Revision bizay E-commerce platform Pingo Doce Vale do Lobo Supermarket i-charging www.i-charging.pt Ad Tech F-charging Electric Mobility Established Early-stage 9#10Iberis is registered under CMVM which implies a high degree of transparency towards its investors Management Company: Iberis Semper, Sociedade de Capital de Risco, S.A. Board of Directors: Luís Quaresma, João Henriques, Diogo Chalbert Santos, David Pinheiro Independent Fiscal Council: Miguel Pita (former BCG partner), Rui Monteiro (former Head of Internal Audit at Vodafone PT), Manuel Gregório (statutory auditor) and Nuno Sebastião (CEO of Feedzai) Statutory Auditor: KPMG & ASSOCIADOS - SROC, S.A. Bluetech (CMVM 1517) Growth investment in companies with strong R&D Greytech (CMVM 1545) - Growth and buy-out Bluetech II (CMVM 1635) Growth investment in companies with strong R&D Greytech II (CMVM 1664) - Growth and buy-out Fully independent (100% owned by its partners) that work exclusively at Iberis; Iberis' largest investor has committed <10% of the total AuM Clear governance (1 partner = 1 vote) ensuring alignment of interest, checks & balances and absence of conflicts of interest in decision process Fit and proper validation of partners by CMVM and Bank of Portugal Fully online investor processes allowing smooth onboarding (subscription, KYC) and access to information (investor portal) Asset valuation in conformity with the Portuguese Law Risk management processes in place KYC and Anti-Money-laundering processes in place Yielding investment funds Greentech (CMVM 1531) Portugal Yield Fund (CMVM 1574) Portugal Yield Fund II (CMVM 1752) Pre-revenue VC Rosewood (CMVM 1594) Sandalwood (CMVM 1670) Techtree (CMVM 1673) Verification by CMVM of adequacy of resources and platforms (human capital, IT, facilities) for investment, monitoring and back-office 10#11Agenda Iberis Capital Portugal Yield Fund II 11#12The Portugal Yield Fund II The Portugal Yield Fund II is a follow-on fund to the Portugal Yield Fund I, and is is focused on real estate backed businesses and other yielding real assets KEY CHARACTERISTICS LOW RISK Not based in capital appreciation but in the rents cash flow that is generated, having annual distributions DIVERSIFICATION Higher risk diversification as the fund has a portfolio of properties, having real estate risk level TRANSPARENCY The fund is a regulated investment vehicle with transparent fees, audited by an independent and reputable audit firm (EY) TRACK RECORD Relevant experience and knowledge of the Portuguese real estate market, developed especially with the Portugal Yield Fund I 12#13Portugal Yield Fund II (PYF-2) will start investing as soon as Portugal Yield Fund I (PYF-1) is fully invested 4.0 PYF-1 INVESTMENT STATUS 17.8 1.8 12.0 10.0 Target size of the fund PYF-1 PIPELINE Description Ticket Estimated Fund Yield Supermarkets 2 properties with long term leasing contracts with leading supermarket chains - €8.5M 5-6% Hotel 1 hotel properties with long term leasing contracts ~€3.4M 5-6% Furniture and Design Store Large retail space in Madeira with a long term leasing agreement ~€3.1M 7-9% Invested Termsheet negotiation Liquidity Buffer and Fund size expenses PYF-1 is about 30% invested and is expected to be fully invested in Q1 22'. Meanwhile, PYF-2 is already negotiating promissory purchase agreements of properties under development 13#14PYF-2 will follow the same investment strategy as the PYF-1 which has a robust portfolio 響 Below are the investments already completed by Portugal Yield Fund I Description Ticket (including debt) Gross unlevered Yield Estimated Fund yield Quarteto Lisbon Real estate in Lisbon with a leasing agreement with a co-working company for 12 years €2.4M 5-6% 6-7% Pingo Doce Quinta do Lago Commercial real estate in Algarve, with a leasing agreement of 24 years with a leading supermarket chain €2.4M 6-7% 8-9% Pingo Doce Vale do Lobo Commercial real estate in Algarve, with long-term leasing contract with a leading supermarket €3.5M 6-7% 7-8% chain PYF-1 has already started distributing: in 2021 it will distribute ~2.3% of the capital, with only 30% of the fund invested¹ 1. Considering the distribution in June and the expected distribution in November. 14#15The investment in Quarteto was completed in May and it is performing well since its tenants are a reliable counterparty Ourens > DESCRIPTION 1,050m² office building in a prime location in Alvalade neighbourhood Known for hosting an iconic movie theatre in Lisbon until 2007 Comprised 3 floors, 6 divisions and a rooftop DEAL OVERVIEW Investment of EUR 1.230M (100% of equity) in the company which owns the building Sale price of EUR 2.425 Million (mortgage of EUR 1.350M) Lease contract for 12 years with no waiving, personal guarantees and a bank guarantee covering 4 months of rent Lease price of 13.25€/m² in line with local market prices Proposed purchase price offers a gross yield of c. 5.6% and the levered annual yield to the fund is estimated at c. 6.8% © Braga E1 Porto о E82 E801 Viseu E O Guarda Figueira da Foz E1 Coimbra о Portugal E1 Lisboa Estoril Setúbal E802 Cá N Badajo E802 Évora E1 E1 Hu feira Faro ° 15#16The investment in two supermarkets in Algarve with a solid tenant (Pingo Doce) was closed in the beginning of July Ourens DESCRIPTION Stores with 627m² and 894m², respectively, in prime locations in Algarve The counterpart is a leading supermarket operator, with more than 400 stores in Portugal Diversification of the current portfolio Braga E1 9 Porto о E1 Coimbra E82 E801 Viseu E O Guarda Figueira da Foz о Portugal E1 > DEAL OVERVIEW Sale price of EUR 5.9M (mortgage of EUR 3.5M) Investment of EUR 2.4M in the Special Purpose Vehicle that owns the building 24-year lease contract with no break clause, with a solid counterpart and in strategic locations (no other supermarkets in the area) Acquisition price of 3.879€/m² slightly below local market prices Purchase price offers a rental yield of c. 6.1% and the levered annual IRR to the fund is estimated at around 6.7% Lisboa Estoril Setúbal E802 Cá N Badajo E802 Évora E1 Hu feira Faro ° 16#17Portugal Yield Fund II summary Description > Yield generating businesses with strong asset coverage Term > 8 years > Targets Investment Structure Target Returns Conditions Commercial real estate assets in liquid areas > Other yield generating businesses (e.g., infrastructure, concessions) > 50-60% leverage at each investment (not at the fund level) V V > Long term leasing agreements > Tenants with a solid balance sheet > IRR: 4-5%; MOM: 1.3-1.5x in scenarios with a low capital appreciation > One off fee of 3% over subscribed capital > Yearly management fee of 1.25% over subscribed capital > Carried interest of 25% with 80% catch up > Hurdle Rate of 4% ^ ^ > Minimum Investment: €250,290 or €50,000, if the total investment Iberis funds is at least €250,000 1717#18The target net return for the Portugal Yield Fund II is ~4-5% ILLUSTRATIVE RETURN SCENARIO Years 0 1 2 3 4 5 6 7 8 Investment -350.2 3.6 10.4 21.8 17.6 16.3 16.3 16.3 16.3 TARGET RETURNS > Portugal Yield Fund seeks a lower risk profile, by investing in asset backed companies, meaning companies in which the investment is substantially covered by a real estate asset that protects the downside > After repaying the total amount contributed to the fund, income will be distributed to the investors to ensure an annual compound return of 4% on the capital drawn down (Hurdle) > The fund will pay the management company a performance fee of 25% of the net profit generated (80% catch up), provided the investors have secured at least 4% of annual return on their investment > Afterwards, 75% of the remaining capital and/or income will be distributed to all participants in proportion to the contributed capital, with the remaining 25% distributed as carried interest Yield Divestment Total return Target yields of ~6% unlevered, 4 to 5% net return (post leverage and fund fees) 1) It is half of the last 5 years CAGR of the Commercial Property Price Index: 3% - Source: INE (Statistics Portugal) Note: Last 30-years CAGR of the Housing Price Index: 4% - Source: OCDE Original €350 K plus €118.1 K (~35% increase) 349.7 This example is a simulation of the investor's returns assuming the current investment conditions. This scenario offers a net IRR of ~4.3% and considers a yearly asset appreciation of 1.5%1. 18#19The fund life is 8 years, which is aligned with the usual holding period for investors applying for a Golden Visa Investment in the fund and application at SEF Up to 12 months, issuance of residence card Apply for Portuguese Nationality 8th year Nov 2021 2022 2023 2024 2025 2026 2027 2028 Oct 2029 Subscription Period 2 years (until 10/2023), with increasingly higher PU prices Investment Period 4 years (until 10/2025) with two additional 2-year period (optional) > Deals are sourced by researching the market and by the existent Iberis network > > The fund conducts due diligences on the properties > > The fund invests in yielding assets, independently appraised and with predictable cash flows > The fund collects rents and is responsible to solve structural problems related to the properties. Nonetheless, the day-to-day repairs are tenants' responsibility > Holding and Divestment Period Total Fund Life is 10 years with an optional extension of 2 years The fund is a closed term fund, hence by the end of its life (2029), it will have sold all its assets and returned the proceeds to the investors It is possible to exit earlier than the 8 years via secondary sale of the participation units (securities that can be bought and sold at any time), which requires finding a purchaser Nonetheless, most investors choose to keep their position in the fund as it strengthens the application for citizenship 19#20Pipeline of investments Below are investment opportunities currently under analysis for the Portugal Yield Fund II Description Ticket Gross unlevered Yield Estimated Fund yield Supermarket Supermarket Commercial real estate in the Lisbon Metropolitan area, with a long-term leasing contract with a leading supermarket chain in Portugal. The construction should be completed until August Commercial real estate located in a city one hour from Lisbon, with a long-term leasing contract with a leading supermarket chain. The construction should be completed until July Note: These opportunities may no longer be available €6.0M 5-6% 6-7% n.a. n.a. n.a. 20#21Golden Visa Process Obtain tax ID nr. 1-2 weeks (remotely) Pre-approval GV 1-2 months (remotely) Schedule biometrics 1-3 months (remotely) Open bank account 2-8 weeks (remotely) Submit GV 1 week (remotely) Biometrics in PT (in person) Subscription of fund 1 week (remotely) Bank declarations 1 week (remotely) Transfer of the funds 1 day (remotely) Receive GV 3-4 months 1st renewal 2 years later 2nd renewal 2 years later Start of the 5-year period of holding the investment1 Fund declaration 1 day (remotely) Illustrative. Dates are merely indicative | 1. Minimum period to obtain the citizenship/perm. residency Citizenship/ Perm. Residency application 1 year later Bank Lawyer Iberis PT Immigration Authority 21#22Investment Outline Process Illustrative DUE DILIGENCE 1st Contact The entire process with Iberis can be conducted remotely SUBSCRIPTION Send required documentation for subscription INVESTMENT Issuance of the capital call Give access to the fund's information Compliance process Transfer from the PT bank account to the fund's account Due diligence of Iberis and its funds (calls, e-mails) Additional compliance requests (if applicable) Fund's declaration + Credit of UPs to investor account Decision to invest Completion of the compliance process Iberis + Investor Iberis Investor 22#23beris CAPITAL