IFU – Investment Fund for Developing Countries Presentation on South Asia IFU – Investment Fund for Developing Countries 1/18/2019

1967 20 184 146 bn DKK IFU IN BRIEF bn DKK Independent government-owned fund, operating on commercial terms Promotes economic and social progress in developing countries 146 Provides risk capital and advice for projects having a Danish interest investment countries Established in Total contracted investments of more than 1967 20 184 bn DKK bn DKK invested in share capital and loans Leverage/mobilisation of capital: factor 8-9 1/18/2019 Presentation on South Asia

IFU’s INVESTMENTS AND RETURNS 40 – 50 annual investments New and additional financing 10.9 % Investments in more than 100 countries Active portfolio of 208 projects Average commitment of 5 - 7 years 1260 The average annual gross return on share capital (2013 - 2017) DKK 9.1bn Contracted investments in 2016 DKK 1,296m Capital under management 1/18/2019 Presentation on South Asia

IFU AS FUND MANAGER Danish SDG Investment Fund IFU and six Danish pension funds have established Danish SDG Investment Fund, which will contribute to meeting the sustainable development goals through commercial private sector investments in developing countries. The current capital commitment is DKK 4.1 billion. The total objective is a fund of up to DKK 5 billion. It is expected that the remaining capital commitments will be made in a second closing in the second half of 2018 1/18/2019 Presentation on South Asia

IFU IN SOUTH ASIA Pakistan Active projects: 1 Exited projects: 13 NEW DELHI Pakistan Active projects: 1 Exited projects: 13 India Active projects: 17 Exited projects: 79 Bangladesh Active projects: 1 Exited projects: 8 Sri Lanka Active projects: 2 Exited projects: 6 SINGAPORE IFU, KIF and DAF presence 1/18/2019 Presentation on South Asia

FOUR ELEMENTS IN IFU’S VALUE CREATION Financing Risk sharing and long-term Investment horizon Share capital Loans Guarantees Investment period 6-8 years Agreed exit Advice Evaluation of business plan Financial structure Legal set-up Partner negotiations Governance/Sustainability Access to local authorities Finding premises FOUR ELEMENTS IN IFU’S VALUE CREATION Strategic partner Board work Strategic advice Additional financing Sustainability reporting SDG impact Network & local presence Experience from 1,260 investments in 100 countries Ten regional offices in Africa, Asia and Latin America 30 local and regional advisers Experienced investment teams 18-01-2019 Event: Add event via 'View' / 'Header & Footer'. Max one line

96 34 12 1bn years DKK IFU IN INDIA bn DKK Experienced investment team in India, Singapore and Copenhagen 96 Regional office since 1997; since 2001 in New Delhi investments made by IFU Total contracted investments of more than Project Pipeline Fertilizer Municipal waste management Renewable energy (solar, wind) Microfinance Media Dairy 34 12 years bn DKK of experience 1bn DKK invested in share capital and loans 1/18/2019 Presentation on South Asia

9 32 3 119m years DKK IFU IN BANGLADESH bn DKK Experienced investment team in India, Singapore and Copenhagen 9 Regional office since 1997; since 2001 in New Delhi investments made by IFU Total contracted investments of more than Project Pipeline Ice cream factory SME finance company 32 3 years bn DKK of experience 119m DKK invested in share capital and loans 1/18/2019 Presentation on South Asia

40 14 10 313 years IFU IN PAKISTAN bn DKK m DKK Experienced investment team in Copenhagen and Kiev 40 14 years of experience investments made by IFU Project Pipeline Total contracted investments of more than Total investments in share capital and loans Cement Renewable energy (Wind) 10 313 bn DKK m DKK 1/18/2019 Presentation on South Asia

IFU – INVESTMENT MODEL (Pre-2016) IFU had a restrictive mandate allowing it to only invest in projects with a Danish company as a co- investor Over the last 50 years, IFU invested alongside approximately 800 Danish companies in setting up subsidiaries / JVs in 100+ developing countries Danish Partner IFU Equity (USD 1 to 15mn) Equity Loan Local bank Project company Local investor Equity 1/18/2019 Presentation on South Asia

IFU – INVESTMENT MODEL (Post-2016) IFU’s new investment model emerged, wherein Equity participation from the Danish partner has been replaced by an “Interest” This will allow multiple new collaboration opportunities wherein IFU will now be able to provide risk capital to customers, suppliers, or vendors of Danish Companies Danish Partner IFU Equity (USD 1 to 40mn) Interest* Loan Local bank Project company Local investor Equity Interest Danish investor Danish company supplying goods, technology, know-how, management or services; Indirect financial participation to the project company; Danish company sourcing products from the project company; Danish participation on the board or in the management team of the project company; Use of state-of-the-art Danish technology in the project; Direct or indirect job creation in Denmark 1/18/2019 Presentation on South Asia

CASE: ROSERVE, INDIA Water treatment India Signed DKK 16m DKK 95m CO2 savings over project life 2,817,090 t Roserve provides Industrial Effluent recycling plants on an operating lease (6 years) to industries required by law to have a zero liquid discharge (ZLD) from their operations. Approx 20% of the plant cost is pumps from Grundfos. The customers will be from industries such as pharmaceuticals, chemicals, distilleries, yeast, tanneries and textiles. Waste water recycle market in India is still at a nascent stage, however growing at a compounded annual growth rate of 16%. 1/18/2019 Presentation on South Asia

CASE : SARAF FOODS, INDIA KEY FACTS Project Type Freeze dried fruits and vegetables Country India Status Signed Fund Participation DKK 15m Expected total investment DKK 65m Saraf Foods is a 25 year old food processing company engaged in the production of freeze dried fruits and vegetables. The Company supplies its products to various FMCG companies globally. Through IFU’s investment, the Company expanded its operations by nearly doubling its freeze drying capacity, adding a segment of air dried vegetables and backward integrated by adding a IQF line. Saraf Foods buys freeze drying equipment from GEA Process Engineering A/S, a reputed Danish equipment supplier to food processing industry. 1/18/2019 Presentation on South Asia

CASE : POWER CEMENT, PAKISTAN KEY FACTS Project Type Cement production Country Pakistan Status Signed Fund Participation DKK 71m Expected total investment DKK 1,914m Power Cement is a cement factory, established in 1981 in Jamshoroo, Pakistan. The Company is supplying the increasing demand for cement in Pakistan. Furthermore, it has a location allowing for export of excess production. IFU’s investment is part of an operation expansion, by constructing a third production line and thereby increasing the cement capacity by 7,700 tpd to a total of 10,700 tpd. FLSmidth is providing engineering, procurement, equipment and is in negotiations to supervise the expansion. 1/18/2019 Presentation on South Asia

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