Strategic Investments A/S : Mini prospect Strategic Investments

Strategic Investments A/S - investor information

Company information

The organization

Company profile

Investment profile

Strategic Investments A/S

Address: c/o OfficeClub

August Bournonvilles Passage 1

DK-1055, Copenhagen K

Identifikation Code: CVR-nr. 71064719

Financial instrument: ISIN DK0010271238

The management consists of:

Jens Black, CEO

The board of directors consists of:

Peter Ott, Chairman of the board

Lars Stoltze, Board member

Katja Nowak Nielsen, Board member

Strategic Investments A/S is a listed investment company focusing on activist investment and investment in Nordic small and midcap equities, and hedge fund investments in other instruments.

The Company uses a strategy based on investments in securities and financial instruments in order to generate a high return. The strategy is a mix between activist investment and investment in small and midcap equities and hedge fund investments in other instruments. With activist investment means investing in companies in which the Company will seek to exercise active ownership and try to influence through board memberships and regular meetings with directors and partners.

The Company's investment decisions are reviewed regularly taking into account changes in market conditions and management's assessment of risk and return potential. The Company will invest primarily in Nordic equities, bonds, and corporate bonds. Listed financial derivatives are used for the active management of its risks and positions. These instruments are primarily based on equity indexes in liquid markets, such as Germany, UK and USA.

When determining investment decisions, the management intends as far as possible to ensure

Risk factors and risk and liquidity management

that the company does not have the fiscal status of investment company under the Capital Gains Tax Act section 19. This means, among other things, a reduction in the Company's ability to make certain leveraged investments.

The Company's overall objective is to generate a return of 10 - 15% p.a. after tax. There is inherently no assurance that such returns can be realized. Revenue is expected to be variable from month to month, but the Company intends to strive for positive quarterly returns in 75% of the cases.

The investments are made in accordance with Danish law. The investors will own shares in the Company, which are listed on the Nasdaq Copenhagen A/S stock exchange.

There are no other rules on redemption rights than what is required by mandatory Danish legislation.

From the Company's perspective, the following elements may consider to be of particular significance for the development in the value of its investments and thus the book value of shares issued by the Company: 1) Fluctuations in the stock markets in general, 2) Fluctuations in the value of the Company's securities portfolio, 3) Fluctuations in currency exchange rates, 4) Credit- and liquidity risks.

The Company shall at all times have a permanent risk management function that continuously detects, measures, controls and monitors the risks that the Company's board of directors has identified as relevant to the Company's investment strategies and the Company's business.

Steffen Schouw, who reports directly to the Company's board of directors, handles the Company's risk and compliance function.

The board of directors has prepared an investment and leverage plan that is comprehensive for the Company's risk exposure.

The Company's board of directors regularly assesses whether there is a need to set quantitative and/or qualitative risk limits.

The largest commercial risks relate to the development in the Company's investments. The

Director monitors and adapts continuously the portfolio. The investment strategy and any investment decision is based upon the expectations for the future, both overall and in relation to a specific investment. The Director seeks to provide as complete a basis as possible for any decision and from this examines realistically and objectively the risks and rewards opportunities in accordance with the Company's board of directors' provided risk and exposure limits. The Company's current exposure to these are calculated and checked daily.

At the end of each month a monthly accounting shall be made whereby securities accounts and cash equivalents are checked and balanced. The monthly reports are the basis for interim and annual reports. Interim reports are not audited. The annual report shall be audited by the Company's auditor.

The Company's accounting, reporting, management and control systems, consists of a combination of externally and internally developed systems. The Company has implemented procedures and controls to minimize errors and fraud. The Company's management believes that there are no significant risks related to the measurement and reporting.

The securities are measured initially on the trade date at fair value. Securities are subsequently measured at fair value through comprehensive income.

The return of the securities are included in the investment result. Fair value of listed securities is determined based on the market price at the balance sheet date. The fair value of unlisted securities is determined based on recognized valuation methods and current market data.

Derivative financial instruments are recognized and measured at fair value. Positive and negative fair values of derivative financial instruments are included in other receivables or other liabilities.

Steffen Schouw continuously ensures that the Company's liquidity level is sufficient to run the Company's business at an unchanged level until the next board meeting.

If Steffen Schouw notes that the Company's cash budget is not kept or if there is a risk that it will not be respected, the Company shall immediately

inform the board of directors with proposals for a restoration plan. The board of directors shall call for an extraordinary board meeting as soon as possible.

If the Company's board of directors notes that the Company's cash budget is not kept or if there is a risk that it will not be met, the Company's board of directors must immediately decide on a restoration plan.

The Company can leverage its investments by up to

Leverage3 times the equity in equity-related instruments and up to 5 times the equity of the bond and currency- related instruments. Thus the equity can at most be leveraged 5 times.

Procedures for change of investment strategy or investment policy

Capital Base

Company shares

The Company's board of management adopts an action plan made by the board of direction.

The Company's capital base must at all times be the higher of EUR 300,000 and ¼ of the last year's fixed costs, however, at any time, at least such an amount that the Company's board of directors believes makes the Company able to operate its business in accordance with company documents, guidelines and all applicable laws.

The Company's shares are listed on NASDAQ Copenhagen A/S, and is subject to the rules resulting therefrom as well as the rules otherwise applicable to listed companies in Denmark, including the Securities Act and Companies Act.

NAV of shares

Company's latest annual report and historical performance

Depositary and auditor

The Company's NAV history is included in appendix 1.

The information is available at the Company's website http://www.strategicinvestments.dk/

Depositary:

Ringkjøbing Landbobank A/S, Denmark

The Depositary shall:

• Ensure that the Company's cash is posted to an account,
• Implement effective and proper procedures to align the Company's cash balances,

Delegated management

Valuation procedure

Fees, charges and expenses

Treatment of investors

• Continuously monitor the Company's voting and control the Company's own records,
• Set up an account at the depositary, and the depositary shall also act as the Company's depositary bank,
• Maintain a register of the assets held by the Company and overseeing the Company actually own these,
• Ensure that the Company complies with its investment strategies, investment frames and the leverage limits set by the Company's board of directors,
• Introduce and implement an escalation procedure to ensure compliance with applicable regulations,
• Such other obligations imposed on the depositary pursuant to the AIFM and
• Periodically review the procedures applicable to the depositary's own business.

Auditor:

KPMG, Statsautoriseret Revisionspartnerselskab

None.

The Company's assets and liabilities are measured on a Net Asset Value level. As the Company invests in listed securities and financial instruments, the value of the Company's assets are based on the closing price of the Company's shares immediately prior to the measurement date.

The investors defray all expenses (consisting of a broker's fee) in connection with entry/exit according to an individual agreement with the bank/broker.

The running costs for the operation, administration and management are defrayed by the AIF. The investor's part hereof will depend on the bare amount of these costs as well as the size of the AIF's capital. Currently these costs amount to approximately 1,6 % p.a. and a equivalent part of the individual investor's investment.

The Company must treat all investors equally.

Appendix 1, NAV history

# NAV DATE	NAV
1	30-09-13	0,57
2	31-10-13	0,59
3	30-11-13	0,59
4	31-12-13	0,60
5	31-01-14	0,61
6	28-02-14	0,64
7	31-03-14	0,66
8	30-04-14	0,67
9	31-05-14	0,70
10	30-06-14	0,69
11	31-07-14	0,70
12	31-08-14	0,71
13	30-09-14	0,71
14	31-10-14	0,67
15	30-11-14	0,61
16	31-12-14	0,64
17	31-01-15	0,67
18	28-02-15	0,70
19	31-03-15	0,69
20	30-04-15	0,72
21	31-05-15	0,74
22	30-06-15	0,75
23	31-07-15	0,76
24	31-08-15	0,71
25	30-09-15	0,74
26	31-10-15	0,76
27	30-11-15	0,77
28	31-12-15	0,78
29	31-01-16	0,76
30	29-02-16	0,77
31	31-03-16	0,74
32	30-04-16	0,75
33	31-05-16	0,79
34	30-06-16	0,84
35	31-07-16	0,88
36	31-08-16	0,89
37	30-09-16	0,90
38	31-10-16	0,89
39	30-11-16	0,91
40	31-12-16	0,95
41	31-01-17	1,00
42	28-02-17	0,99
43	31-03-17	1,03
44	30-04-17	1,03
45	31-05-17	1,02
46	30-06-17	1,03
47	31-07-17	1,06
48	31-08-17	1,05
49	30-09-17	1,03

50	31-10-17	1,01
51	30-11-17	1,01
52	31-12-17	1,04
53	31-01-18	1,07
54	28-02-18	1,04
55	31-03-18	1,06
56	30-04-18	1,08
57	31-05-18	1,06
58	30-06-18	1,06
59	31-07-18	1,07
60	31-08-18	1,05
61	30-09-18	1,02
62	31-10-18	0,97
63	30-11-18	0,96
64	31-12-18	0,89
65	31-01-19	0,89
66	28-02-19	0,86
67	31-03-19	0,87
68	30-04-19	0,89
69	31-05-19	0,86
70	30-06-19	0,86
71	31-07-19	0,87
72	31-08-19	0,85
73	30-09-19	0,87
74	31-10-19	0,87
75	30-11-19	0,87
76	31-12-19	0,96
77	31-01-20	1,00
78	29-02-20	0,90
79	31-03-20	0,67
80	30-04-20	0,66
81	31-05-20	0,73
82	30-06-20	0,73
83	31-07-20	0,74
84	31-08-20	0,77
85	30-09-20	0,77
86	31-10-20	0,77
87	30-11-20	0,88
88	31-12-20	0,94
89	31-01-21	0,94
90	28-02-21	0,94
91	31-03-21	1,00
92	30-04-21	1,01
93	31-05-21	1,03
94	30-06-21	1,05
95	31-07-21	1,10
96	31-08-21	1,10
97	30-09-21	1,09
98	31-10-21	1,13
99	30-11-21	1,13
100	31-12-21	1,07
101	31-01-22	1,03

102 28-02-22 1,00

103 31-03-22 1,09

104 30-04-22 1,10

105 31-05-22 1,05

106 30-06-22 1,01

107 31-07-22 1,08

108 31-08-22 1,15

109 30-09-22 1,09

110 31-10-22 1,10

111 30-11-22 1,08

112 31-12-22 1,14

113 31-01-23 1,20

114 28-02-23 1,20

115 31-03-23 1,20

116 30-04-23 1,19

117 31-05-23 1,20

118 30-06-23 1,19

119 31-07-23 1,27

120 31-08-23 1,30

121 30-09-23 1,27

122 31-10-23 1,21