ARM Who We Are

Corporate Presentation

1
ARM is a diversified and
integrated asset
management
firm with scalable business
operations in defined niche areas...

ARM © 2015
The ARM Group Overview
Founded in 1994, ARM is a fast-growing, leading Nigerian diversified financial services firm with
primary interest in traditional asset management, and specialised funds across major sectors. ARM is
Nigeria’s largest and most reputable non-bank financial services provider.

N760 billion 712

TOTAL NUMBER OF
N85billion
ARM GROUP SHAREHOLDERS’
FUNDS UNDER MANAGEMENT
AS AT DECEMBER 2016 PROFESSIONAL STAFF FUNDS AS AT DECEMBER 2016
ACROSS THE GROUP

>673,000
NUMBER OF CLIENTS
“AA-”
2016 FUNDS MANAGERS
10
NUMBER OF
ACROSS THE ARM GROUP RATING BY AGUSTO & SUBSIDIARIES
CO. (HIGHEST AWARDED ACROSS THE ARM
TO ANY NIGERIAN ASSET GROUP
MANAGER)

ARM © 2015
As at September 2016
3;
Our Business Structure

The ARM Group structure is based on our two-pronged strategy of strengthening our traditional asset management
operations and creating a funds business to invest in various asset classes.

ARM Holding Company

Ltd (HoldCo)

ARM Traditional Asset ARM-Harith

ARM Agriculture
Management Ltd ARM Capital Partners Ltd Infrastructure Mixta Africa S.A.
Fund
(TAM HoldCo) Investment Company

FUNDS BUSINESS
ARM Trustees Ltd

ARM Pension Managers

PFA Ltd

ARM Securities Ltd

ARM Life Plc

“A diversified and
ARM Investment integrated asset management firm
Managers Ltd with scalable business operations in defined niche
areas”…
ARM Financial Advisers
Limited

4
 Our Business Architecture
Today, our evolved Group structure is based on our two-pronged strategy of strengthening our
traditional asset management operations and creating a funds business to invest in various asset classes.

Realising
Ambitions
Scaling of traditional asset management Strategic investments in high growth areas
business to ensure annuity income streams of Nigeria’s emerging economy

Asset Management Funds Business

ARM ARM ARM ARM-Harith ARM MIXTA

ARM ARM ARM ARM Capital Infrastructure Agriculture
Investment Financial Africa
Trustees Pensions Securities Life
Managers Advisers Partners Fund Fund

Private Private
Wealth Brokerage Equity
Management Fund

Retail Research
“A diversified and
Institutional integrated asset management firm
with scalable business operations in defined
niche areas”…
Our Client Base
ARM’s business platform is able to meet the needs of a diverse customer base.

ARM

Asset Management Funds Business

ARM ARM ARM ARM-Harith ARM MIXTA

ARM ARM ARM ARM Capital Infrastructure Agriculture
Investment Securities
Financial Africa
Trustees Pensions Life Partners Fund Fund
Managers Advisers

Customers

Retail Investors Institutional Investors Pension Contributors

HNIs Real Estate Investors Corporates

ARM has successfully built a platform for meeting the investment needs of our clients
Our Journey

ARM © 2015 7
 Our Journey
Early Beginnings (1994-2004)
ARM was established in 1994 as an independently run asset management subsidiary of Guaranty Trust
Bank (now known as GT Bank). ARM began as a pure asset management company, with a focus on
private wealth management, offering clients traditional investment opportunities (primarily quoted
investments and fixed income products).

1994 - Client review meeting depicted in ARM’s first promotional brochure.

1994 - ARM Offices at Foreshore Towers, Osborne Road.

Early ARM literature

ARM © 2015 8
Our Journey
Early Beginnings (1994-2004)

At inception, we had a vision to become one of the leading asset management firms in the region

Mission
To meet the investment needs of each client

Vision
To be the leading provider of financial advisory and
asset management services in West Africa

ARM © 2015 9
Our Journey
Early Beginnings (1994-2004)
In response to market needs, ARM expanded operations with additional services to complement the
private wealth management service and provide ancillary services to clients.

Asset Management Asset Management Financial Advisory

Institutional
Quoted Private Wealth Retail Asset
Fixed Income Asset ARM Trustees
Investments Management Management Management

▪ With the launch of its flagship Fund, the ARM Equity Growth Fund in 1995, ARM entered into the retail asset
management space.
▪ ARM also expanded beyond private wealth management to institutional asset management, and established ARM
Trustees to complement private wealth management service.
▪ In addition, the Company began offering financial advisory services in 1996. Our first advisory transaction was
restructuring and fund raising for a troubled asset (Foreshore Towers), after we provided advisory services on an
insolvency and business restructuring transaction for National Oil and Chemical Company (now Conoil).

ARM © 2015 10
 Our Journey
Early Beginnings (1994-2004)

However, growth was slower than expected, so the Company began to find alternative ways to
supplement income and explore growth opportunities in the expanding economy.

▪ ARM continued to provide financial advisory services,

executing its first real estate securitization transaction
in 1998. Given the attractiveness of this sector, ARM
began executing real estate development projects,
starting with the Jide Oki development.

▪ In 1999, ARM obtained access to Merrill Lynch open

architecture platform

▪ Our flagship mutual fund, ARM Equity Growth Fund

was renamed “ARM Discovery Fund” and listed on
2003 – Picture of wall at ARM Offices at 1 Mekunwen Road, Ikoyi. the Nigerian Stock Exchange in 2002. It was one of the
first mutual funds to be launched on the Exchange.

▪ During the period, ARM executed a number of real

estate developments, including Lakeside Mews I & II
and the 94-room Moorhouse Sofitel Hotel.

▪ In 2003, ARM relocated its offices to its present

location at 1 Mekunwen Road, Ikoyi.
2002- The Discovery Fund (formerly ARM Equity Growth Fund) was launched on
the Stock Exchange.
ARM © 2015 11
Our Journey
Early Beginnings (1994-2004)
Story of the Bull

The bull
...typically
conjures
"strength/
speed/
Click to add text
aggression/
stability/
robustness" -
all characters
with which we
identify.

The “tethered bull” implies strength on the part of the bull and control of the situation on ARM’s part, with golden
ropes to indicate top quality service; the palm tree to suggest the Nigerian environment and four plump doves flying
away with nesting material and fruit to indicate progress towards a future full of prosperity.

ARM © 2015 12
Our Journey
Early Beginnings (1994-2004)

We reviewed our brand positioning and launched a new brand and visual identity in 2004,…

Proposition:
To our Clients: Partners Clients
Your ambition is our ambition

To our Staff:
Working together to transform goals into
reality Core Idea
To our Shareholders: Regulators
“Realising ambitions”
Staff
(unlocking potential)
Entrusted with the safety of my asset

To our Community:
Working to build a better future

To our Regulators: Shareholders

Community
Trusted to meet our expectations

To our Business partners:

Together we achieve more
ARM © 2015 13
Our Journey
Early Beginnings (1994-2004)

We reviewed our brand positioning and launched a new brand and visual identity in 2004,…

Our Core Values

Ambition Proximity Impact Truth
We are driven by Our success relies on two Our value is measured Honesty, trust and
our vision of the interdependent factors: by the degree of integrity are at the
future: how things firstly, we are close to our positive change we heart of everything
could be. It inspires clients and the marketplace; bring about. We strive we say and do. We
us, motivates us and and secondly, we have a to make a difference to keep our promises.
keeps us focused on close understanding of both the people who believe
what really counts, our clients and the in us: our clients, our
1994-2004 working together to marketplace’s needs and shareholders, our
transform our goals aspirations, and the business partners, our
into reality. challenge of fulfilling them. staff.

Our Investment Management Philosophy

Our investment philosophy explains the way we manage investments. This philosophy focuses
on delivering consistent returns to our clients and is shaped by two overarching principles:
From 2004 Value investing and Risk management.
Whilst our objective is to exceed our clients’ chosen benchmark return over the long term, our
investment management approach ensures that capital preservation is not sacrificed in pursuit
of exceeding client’s benchmark return.
ARM © 2015 14
Our Journey
Early Beginnings (1994-2004)

Our Identity

Mission
We seek optimum wealth creation opportunities for those who entrust us
with their assets

Vision
To be the preferred financial partner in Africa providing access to global
wealth creation opportunities

Brand Values
Ambition, Proximity, Impact and Truth

ARM © 2015 15
Our Journey
Expansion Years (2005-2009)
…executed a management buy-out from GTBank and began the rapid expansion of our business
through the establishment of a PFA and the development of a retail strategy

The Boards of Guaranty Trust Bank Plc and ARM reached

agreement on the terms of a management buy-out of ARM
Investment Managers 2005

Following the passage of the Pension Reform Act, ARM

established a Pension Fund Administration business (ARM
Pensions PFA) 2006
ARM Pensions

ARM restructured its real estate business -- ARM Properties

Plc was formally established as an unlisted public limited
company in 2006, with the primary objective of making
focused investments in the Nigerian real estate sector. 2006

ARM launched its second mutual fund, ARM Aggressive

Growth Fund, for the retail asset management sector
2007

The Company also launched ARM Investment Centers, retail

distribution locations to offer a full complement of investment
management services to retail customers 2008 ARM Investment Centers
2005 – MBO Agreement with GTBank

ARM © 2015 16
Our Journey
Expansion Years (2005-2009)
ARM’s focus shifted to creating vehicles to invest in chosen sectors of the economy. Through the creation
of a Funds business, ARM was able to build competencies in alternative growth sectors while still
maintaining a core focus on asset management.

Conclusion of equity financing round for Lekki Concession Company -- Expanded into brokerage business, with the
LCC achieved “US$390m financial close”, for Lekki Epe Expressway acquisition of Hamilton Hammer &
rehabilitation Public Private Partnership (PPP) project 2008 Company Limited 2008

ARM undertook a capital raise to raise the requisite funding ARM introduced its Private Equity Fund to make
with which to finance the expansion of its operations investments in attractive opportunities in the region
2008 2009

The Company also began the conceptualisation and development of initial assets to seed into the various proposed Funds:
LCC, Four Points, Lakowe Lakes

“When written in Chinese

the word ‘crisis’ is
composed of two
characters - one
represents danger and the
other represents
opportunity”.
~John F. Kennedy, address, 12 April 1959

ARM © 2015 17
Our Journey
Consolidation Years (2010-2014)

Within its core asset management business, ARM buttressed its position in the industry through the
introduction of more mutual funds and the acquisition of pension and life insurance businesses.

▪ In 2010, ARM Pensions completed a business merger with First Alliance Pension and Benefits, resulting in an
appreciable rise in its assets under management and client base.
▪ ARM also launched its 234-room Four Points by Sheraton Hotel in Lagos, and commenced operation of the Lakowe
Lakes Golf Course and clubhouse.
▪ The Company launched 2 new mutual funds during the period- the ARM Ethical Fund in 2011 and the ARM Money
Market Fund in 2013. ARM was named “Best Fund Manager, Nigeria” by Capital Finance International.
▪ In 2013, ARM expanded into the insurance sector with the acquisition of a life insurance business known as CrystaLife
Assurance Plc (now “ARM Life”).
▪ ARM also acquired Mixta Africa, a real estate development company with a multi-country presence in Africa, in 2014, a
transaction expected to position our real estate business as a Pan-African operation with the ability to maximize
opportunities in emerging African markets.
ARM © 2015 18
Our Journey
Track Record- Notable Projects

Through our funds business, we successfully executed various projects. Our track record and the significant
growth in our fund businesses are testament to our winning strategy, expertise and execution capacity.
Real Estate

Private Equity
Infrastructure
Fara Park Lekki Toll Road Concession E-motion
110 units, residential estate on 15- Special Purpose Vehicle E-Motion digital outdoor
hectares
2003 executing the Lekki Toll Road advertising network with offices
in Lagos and Abuja
BOT Concession Project
2006 2008

Beechwood Estate
Real Estate

Real Estate
Oluwole Urban Mall Adiva Plainfields
Real Estate

Site and services scheme comprising

basic infrastructure (new roads and Modern retail and commercial 120 unit gated residential
drainages, power and supply complex community over 100 hectares
systems) and plots of land for sale PPP with Lagos State Govt 2009
2004 2007

Lakowe Golf Course and

Real Estate
Hospitality &

Real Estate

Cross Town Mall (Agege) Country Estate

Retail

4 Points by Sheraton
237-Room Hotel in Lagos State Modern retail complex with 141 110 units, residential estate on
retail shops 15-hectares
2006 2008 2009

PPP Projects

Project start dates are indicated

ARM © 2015 19
Our Journey
Track Record- Some Awards Received
In recognition of its achievements, ARM has received numerous awards over the years, some of which
are as indicated below:

Euromoney “2008 Africa Africa Investor “Transport Deal of the

PPP Deal of the Year” Year Award” 2008

Capital Finance
International
Award for Reuters Project Finance
“Best Fund International Award for
Manager, “Infrastructure Deal of
Nigeria” 2013 the Year for the Middle
East and Africa Region”
2008

ARM © 2013 20
Our Present State

ARM © 2015 21
Institution Building & Positioning for
Growth (2015)
In 2014, ARM began a corporate restructuring exercise intended to reorganise the legal and business
architecture of the Company across its various subsidiaries

▪ The restructuring exercise is aimed at completing the business transition to a pure asset management agency
business, with clear-cut and enabling legal, corporate and operating structures.

▪ In line with this, the Firm has adopted a new legal architecture which effectively groups the complementary
traditional asset management businesses into a separate portfolio.

▪ To support this exercise, several changes and appointments have been made across the Group, to ensure that
the Companies are equipped with strong management teams that can bring leadership skills, strategic insight,
and operational expertise to stimulate and accelerate growth within the various businesses in the coming
years.

ARM © 2015 22
ARM Group Structure
Today, ARM’s Group structure is based on a two-pronged strategy of strengthening our traditional asset
management operations and creating a funds business to invest in various asset classes.

Asset & Resource

Management Holding
Company Ltd (HoldCo)

ARM-Harith
Traditional Asset ARM Capital ARM Infrastructure
Partners Ltd Agriculture Investment Mixta Africa
Management
Company
MIXTA Nigeria (ARM
ARM Investment Managers
Properties Plc.)

ARM Pensions Mixta Morocco

ARM Securities Mixta Tunisia

ARM Life Mixta Senegal

ARM Trustees Mixta Cote d’Ivoire

ARM Financial Advisers Other Countries

ARM © 2015 23
Our Traditional Asset Management Business
A high-level strategic mapping illustrates the synergistic opportunities that exists within the Group…
MACRO-ECONOMIC AND SOCIO-ECONOMIC TRENDS
International Emerging Home Access to Credit Financial Financial
Fund Managers Middle Class Ownership (Structured Inclusion Services Reform
(Policy) Asset Product)
ARM Broader product ARM Real Estate Informal sector in Industry
Pensions offerings on sister company that RSA will increase consolidation –
account of the can offer affordable client base and ARM Pensions can
Group structure real estate at more FUM undertake M&A to
which creates client competitive prices increase clients and
stickiness than other pension FUM base
companies
ARM ETF (Small number ARM IM clients can Rise in mutual fund
Investment of credible industry benefit by using clients
Managers players) their Equity
portfolios as
collateral to access
credit
ARM Life Benefit from being Rise in retail clients Government
the preferred regulation is
provider of driving the Annuity
insurance cover for market
ARM Real Estate
clients
ARM
Securities
ARM RSA Wills, ARM Trustees can Land Use Act
Trustees Education Trust access credit using reforms will
products their Real Estate expected to
and Equity increase uptake of
portfolios as Trusts
collateral
Opportunities open to all Industry players as a result of trends Opportunities unique to ARM which can produce competitive advantage if
harnessed effectively 24
 Our Private Funds Business

… and we intend to increase our funds business even further to encompass other attractive opportunities
Transaction Generators

Deregulation / Liberalisation Demographic Factors Attractive Sectors

Sale of state electricity assets and liberalization of

Population – estimated 23.73
electricity sector; oil industry reforms via petroleum Gas to Liquid, IPPs &
Energy million households without
industry bill and liberalization of middle/downstream Refineries
access to electricity in 2012
segments.

Drive towards self-sufficiency in food production through Growing population, currently Farming, Food
Agribusiness improvements in agricultural input supply chains, and over 180 million, projected to Preservation and
incentives to farmers. hit 440million by 2050. Processing
Industry Sectors

Growing inclination towards the use of public-private

Huge population and rapid Transportation, Education,
partnerships with State Governments to develop
Infrastructure urbanisation has put pressure Water, Social
infrastructure such as roads, pipe-borne water and social
on infrastructure in key states Infrastructure
education

Ban on importation of certain goods and granting of Rise of the middle class,
Food & Beverages,
Consumer Goods incentives to Nigerian producers to encourage local increase in disposable income
Clothing, Electronics
production and consumer spending

Huge population has caused a

Reforms improving access to finance & property rights, Residential, Commercial,
demand-supply mismatch –
Real Estate establishment of a mortgage refinancing and infrastructure (shops, cinemas,
housing deficit estimated at
concessionary company to support housing provision warehouses), Office
17million units.

Improving country profile and government policies

Rapid urbanisation rate,
resulting in Nigeria’s emergence as a business destination, Hotels & Facilities
Hospitality reduction in poverty levels and
resulting in an increase in business travellers into the Management; Construction
inter-state business travel
country

ARM © 2015 25
Our Traditional Asset Management Business

PENSION ASSET
MANAGEMENT
NON-PENSION ASSET
• Second largest Nigerian pension
fund administrator, with assets MANAGEMENT TRUST
under management of over $2.3 • Second largest in BUSINESS
billion. Nigeria, with assets
• With a 9.9% market share, the under management of • Niche business
company has about 570,000 clients over $600 million which
• Largest subscriber base complements the
of clients within this non-pension asset
space management
segment

STOCKBROKING
LIFE ASSURANCE
BUSINESS
BUSINESS
• Full-service brokerage
business • Complementary business
• Acclaimed research team to asset management for
with a reputation for asset gathering and
comprehensive, product development.
consistent and unbiased
research

ARM © 2015 26
 Our Private Funds Business
INFRASTRUCTURE FUND
▪ Closed-end fund established to
make investments in the West
African infrastructure sector
▪ Achieved first close in January
2015
HOSPITALITY & RETAIL FUND
▪ Pan-Africa specialist fund which
targets attractive investment
opportunities within the high growth
hospitality and retail sectors in Africa
▪ Vision to build diverse range of
portfolio assets with strong return
INFRASTRUCTURE
AGRICULTURE FUND
▪ Actively managed Fund set up to
make investments in the
agribusiness space
▪ Centred on large scale
commercial mechanized farming
and agro-processing
FUND
ARM © 2015
PRIVATE EQUITY FUND
▪ Makes equity investments in firms
operating in the West African region
▪ Fund size of $38 Million
REAL ESTATE
▪ Diverse portfolio to cater for a range
of market segments across
residential, retail and hospitality
sectors
▪ Pan-African business, with presence
in a number of countries in North and
West Africa
27
Our Future

ARM’s business platform is well positioned & able to meet the needs of a diverse customer base.

Building on our strong

foundation, our priorities going
forward are to:
No 1 retail investment platform • Improve operational
efficiency
Leading Position (Number 1 or 2) across our
• Cross-sell more
businesses
• Build stronger teams
Fund Manager rating of AAA : increase rating
• Digitalise everything
Natural destination for international investors looking • Significantly Reduce costs
for traditional and alternative investment
• Develop new products &
opportunities in Nigeria
expand into new markets
• Improve visibility
Compelling opportunities across Africa
• Enhance customer
experience
• Improve staff productivity

ARM © 2013 28
This is ARM
Track record of scalable growth and consistent profitability
We have demonstrated the
ability to successfully
execute projects
We have a track record of
scalable growth and
consistent
profitability
We have cultivated a
ARM’s highly
portfolio of
premium assets respected brand
that show strong value name is synonymous
appreciation
with a clearly defined
growth strategy,
We have synergistic businesses
consistently and an entrepreneurial
returned and experienced team
of professionals
significant value
to our shareholders
ARM © 2015 2929
Whatever your investing ambitions,
we remain the solid foundation.

ARM © 2015 30