A.P. Moller Capital

EXECUTIVE BOARD • Kim Fejfer (Managing Partner and CEO) • Lars Reno Jakobsen (Senior Partner) • Jens Thomassen (Partner) • Joe N. Nielsen (Partner and CFO)

BOARD OF DIRECTORS • Robert M. Uggla (Chairman) • Jan T. Nielsen • Martin N. Larsen

A.P. Moller Capital was established in 2017 with A.P. Moller Holding as the largest shareholder and with the purpose of managing stand-alone capital funds. A.P. Moller Capital is headquartered in Denmark and is regulated by the Danish Financial Supervisory Authority (FSA).

A.P. Moller Capital has reached financial close on its first fund, the Africa Infrastructure Fund I (AIF), with a total commitment of USD 992m. The fund aims to build/acquire and operate infrastructure opportunities in Africa, targeting projects mainly within transportation and energy such as rail, roads, ports and warehousing as well as power plants, transmission, pipelines and distribution. The company aims to create a positive social impact through job creation and industrial growth, while delivering an acceptable return to its investors.

The main investors of AIF are PKA, PensionDanmark, Lægernes Pension (The Medical Doctors’ Pension Fund), PFA, Danica, Lærernes Pension (The Teachers’ Pension Fund) as well as A.P. Moller Holding.

THE YEAR IN BRIEF 2019 marked the year where the first investments were committed by AIF. In total, A.P. Moller Capital has now committed more than 1/3 of the capital to three projects including the port and logistics investment announced in early 2020. STRATEGY REVIEW The investment thesis for AIF is strong. With the population of Africa estimated to double by 2050, and an already existing infrastructure gap, the need for enhancing infrastructure in Africa is clear. The investments to be done by AIF are critical to build a foundation for job creation and prosperity in Africa. A.P. Moller related companies have more than a century of history and engagement in Africa. Their global mindset, long experience and local knowledge will support the continued development in Africa.

RECENT DEVELOPMENTS AIF committed its first investment during 2019. AIF acquired 90% of Impala Energy Holdings (Impala) which holds comprehensive experience and capabilities within the capital power projects. The remaining 10% ownership share is held by Pegasus Capital LLC. Impala’s core strategy is to deliver clean and reliable power to both the commercial and industrial power markets in Nigeria and potentially other countries.

In Q4 2019, AIF signed an agreement to acquire 100% of the shares in a thermal power plant in Kenya. The investment is

subject to the usual condition precedents and approvals and expected to close in Q1 2020.

Furthermore, AIF signed an agreement to invest in the UK based platform company ARISE Ports & Logistics, focusing on ports and logistics activities in West-Africa. AIF holds a 43% ownership in the joint venture with Olam (31%) and Africa Finance Corporation (26%). The investment includes both brownfield and greenfield projects. The platform is an infrastructure ecosystem of ports, trucking, warehouses and rail services, which facilitates effective trade and creates a foundation for local growth. At the outset, the focus will be on investing in and expanding the ecosystem in connection with an existing general cargo port and a mineral port in Gabon, as well as developing new infrastructure ecosystems in other west African cargo centres.

Through 2019, A.P. Moller Capital continued to build the organisation in order to have the best capabilities for investments in transportation and energy sectors in Africa and now employs around 30 employees across its offices in Copenhagen and Dubai. The four partners forming the executive leadership team have more than century of combined industry and investment experience and are personally invested in the fund.

A.P. Moller Capital has, during 2019, further developed its corporate governance in terms of structures and systems to ensure a robust foundation for committed and future investments. Amongst other initiatives, A.P. Moller Capital has committed to UN’s Principles for Responsible Investment (UNPRI).

Solid corporate governance principles and actively incorporating ESG as part of the investment process are key principles for the fund manager and is from A.P. Moller Capital’s perspective viewed as its ‘license to operate’ .

READY FOR OPPORTUNITIES A.P. Moller Capital remains interested in exploring a range of opportunities related to its target sectors. The team is looking into opportunities, and the investment pipeline is strong within various sectors.

A.P. Moller Capital committed to its first investments in 2019 and is seeing solid traction in the investment pipeline for opportunities to mature in the transport and energy sectors also in 2020.