Symphony International Holdings Limited ("Symphony or the "Company")

23 March 2023

Dear Shareholders,

·    Symphony International Holdings Limited's ("Symphony" or the "Company") unaudited Net Asset Value ("NAV") at 31 December 2022 was US$496,685,868 and NAV per share was US$0.9675. This compares to NAV and NAV per share at 30 September 2022 of US$444,576,566 and US$0.8660, respectively. The increase of 11.7% quarter over quarter in NAV is predominantly due to an increase in the share price of Minor International Pcl Limited ("MINT"), a strengthening of the Thai baht and an increase in value of Indo Trans Logistics Corporation.

·    Symphony's share price continued to trade at a discount to NAV. At 31 December 2022, Symphony's share price was US$0.45, representing a discount to NAV per share of 53.9%. This compares to a share price discount to NAV of 49.2% at 30 September 2022.

We would like to highlight some of the key developments in our portfolio companies during the quarter:

·    MINT reported robust financial results for the quarter with the reopening of international borders globally and rising consumer spending that contributed to year-on-year ("yoy") recovery, boosting all three of MINT's business units. During the quarter, Minor Hotels opened the Anantara Plaza Nice Hotel in France and The Plaza Doha by Anantara in Qatar and introduced the NH brand to Asia with the debut of NH Boat Lagoon Phuket Resort in Thailand. Following a significant reduction in our position in MINT, we gave up our seat on its Board of Directors.

·    The ITL group continues to strategically expand certain divisions in order to position for future growth. In March 2023, Symphony entered into a binding agreement with an existing investor, a large Asian logistics company, to sell a small amount of shares as part of a larger secondary transaction. The sale will complete at a price that is 5.52 times our cost of the shares sold.

·    ASG Hospitals Private Limited ("ASG") continued to expand operations with the number of clinics growing from 49 to 52 in the quarter. In March 2023, ASG took control of Vasan Health Care Pvt. Ltd., following regulatory approval. The acquisition expands ASG's full service clinics to over 150 with a pan-India footprint.

·    Soothe Healthcare Private Limited's ("Soothe") sales for the three-months ended 31 December 2022 was marginally higher compared to the same period a year earlier. Management's continued focus on improving margins has met with much success. EBITDA margins improved by 800 basis points on a quarter-over-quarter ("qoq") basis.

·    August Jewellery Pvt. Ltd. ("Melorra") had a strong fourth quarter where the company crossed the milestone of achieving US$100 million in annualised revenue run-rate ("ARR"). Melorra has now entered the elite and limited club of direct-to-consumer ("D2C") brands in India which are over US$100 million in run-rate. The company is focused on achieving positive unit economics and achieving EBITDA breakeven in 2023.

·    Wine Connection Group ("WCG") continued to see a rebound in its business, particularly in Thailand. In early 2023, we entered into a binding agreement to sell this business at close to Symphony's original cost and at a premium to the value that this investment was held at 30 September 2022.

MARKET OVERVIEW AND OUTLOOK

The year 2022 saw surging inflation and rising interest rates in response, an outbreak of war in Ukraine, and heightened geopolitical tensions. Generally, business and consumer sentiment in most countries have weakened, pointing to a slowdown. The International Monetary Fund's ("IMF") January 2023 report forecasts global growth to fall from an estimated 3.4% in 2022 to 2.9% in 2023. The rise in central bank rates to fight inflation and major geopolitical shifts underway continue to weigh on economic activity but China's recent reopening may have  paved the way for a faster-than-expected recovery.

For the first time in more than 40 years China's GDP growth of 3% in 2022 was below the global average but, as stated by Larry Hu, chief China economist at Macquarie, "The exit from the zero-Covid policy has been much faster than expected and such a dramatic U-turn implies deeper economic contraction in the fourth quarter but faster reopening and recovery in 2023." A rebound in demand from China would help counterbalance the expected slowdown in Asian exports to the U.S. and Europe.

India's GDP growth slowed to 4.4% in the final quarter of 2022, primarily due to a 1.1% contraction in manufacturing according to estimates released by the Ministry of Statistics and Programme Implementation ("MoSPI"). The rapid slowdown from 13.2% in the second quarter and 6.3% in the third quarter reflected the impact of subdued consumption demand and exports amid rising input costs and interest rates.  For the full financial year 2022-23, the National Statistics Office ("NSO") has retained the growth estimate at 7.0%. The Reserve Bank of India's ("RBI") Governor Mr. Shantikanta Das said, "Broad-based credit growth, improving capacity utilisation, government's thrust on capital spending, and infrastructure should bolster investment activity."

Thailand's economic growth slowed more than expected in the fourth quarter of 2022, as exports and manufacturing declined, but a rebound in the vital tourism sector should continue to boost recovery. GDP growth was 1.4% in the fourth quarter and 2.6% for the year. Thailand beat its tourism target in 2022 with 11.15 million foreign visitor arrivals. Before the Covid-19 pandemic about 28% of Thailand's 40 million annual visitors were from China. With the return of Chinese visitors the National Economic and Social Development Council ("NESDC") projects Thailand to receive 28 million foreign tourists in 2023, up from 23.5 million projected earlier. The increase in tourist arrivals should benefit our portfolio, particularly our holding in Minor International Pcl ("MINT"). 

Vietnam's economy grew 8.02% in 2022, the fastest annual pace since 1997, backed by strong domestic retail sales and exports. The high annual growth number comes despite fears of a global recession and its impact on demand for exports from Vietnam, a key manufacturer of goods like textiles, footwear and electronics for big-name international brands. Geopolitical factors have resulted in Vietnam becoming the primary beneficiary of the shift in manufacturing out of China. Symphony's holding in Indo Tran Logistics Corporation ("ITL Logistics") stands to benefit from the country's positive growth momentum.

In the fourth quarter, we made a new investment in MAVI, a B2B insurance and warranty programme administration services company headquartered in Singapore with operations in India and Thailand. We also made a follow-on investment in Good Capital Fund 1, and a small loan to Smarten Spaces, a Singapore based SaaS (Software-as-a-Service) company that provides software solutions for space management in commercial and industrial properties. We remain  optimistic about the prospects of our portfolio companies despite the geopolitical and economic uncertainties ahead. As we move forward into 2023, we would like to acknowledge the invaluable support of our shareholders and we remain committed to delivering strong long-term returns for our investors.

COMPANY UPDATE

Symphony's listed investments accounted for 13.2% of NAV at 31 December 2022 (or US$0.1279 per share), which compares to 11.1% of NAV (or US$0.0964 per share) at 30 September 2022. The percentage change is predominantly due to an increase in the share price of Minor International Public Company Limited ("MINT") by 21.7% and an appreciation of 8.3% in the onshore Thai baht.

The value of Symphony's unlisted investments (including property) comprised the remaining 86.8% of Symphony's NAV (or US$0.8398 per share), which compares to 87.4% (or US$0.7563 per share) at 30 September 2022.

Temporary investments accounted for (0.02%) of NAV (or (US$0.0002) per share), which compares to 1.5% of NAV (or US$0.0133 per share) per share at 30 September 2022.

Symphony's share price continued to trade at a significant discount to NAV. At 31 December 2022, Symphony's share price was US$0.45, representing a discount to NAV per share of 53.9%. This compares to a share price discount to NAV of 49.2% at 30 September 2022.

PORTFOLIO DEVELOPMENTS

HOSPITALITY

Minor International Public Company Limited ("MINT"): is one of the largest hospitality and restaurant companies in the Asia Pacific region. MINT is a hotel owner, operator and investor with a portfolio of over 531 hotels under the Anantara, Avani, Oaks, Tivoli, NH Collection, NH, nhow, Elewana, Marriott, Four Seasons, St. Regis and Radisson Blu brands in 56 countries across Asia Pacific, the Middle East, Africa, the Indian Ocean, Europe, South and North America.  MINT is also one of Asia's largest restaurant companies with over 2,531 outlets system-wide in 24 countries under  The Pizza Company, The Coffee Club, Riverside, Benihana, Thai Express, Bonchon, Swensen's, Sizzler, Dairy Queen, Burger King, Coffee Journey and GAGA brands, in addition to over 1,000 outlets of MINT's strategic alliances (i.e. S&P and BreadTalk). MINT is one of Thailand's largest distributors of lifestyle brands and contract manufacturers. Its brands include Anello, BergHOFF, Bossini, Charles & Keith, Joseph Joseph, Zwilling J.A. Henckels and Minor Smart Kids.

Company Update:  In 4Q22, MINT reported robust financial results, growing both yoy and qoq. MINT's 4Q22 core net profit of Baht 2.4 billion was a yoy increase of 44% from 4Q21 and a qoq increase of 18% from 3Q22. MINT reported strong core profit of Baht 2.0 billion, a huge turnaround from the core loss of Baht 9.3 billion recorded in 2021. The reopening of international borders globally and rising consumer spending contributed to yoy recovery, boosting all three of MINT's business units. Mr. Dillip Rajakarier, Group CEO of MINT, commented, "Alongside our new three-year strategy, the focus for 2023 and beyond will be seizing new opportunities that unlock and accelerate growth and profitability, while maintaining MINT's position as a global market leader. We have emphatically returned to growth and MINT is uniquely positioned to capture the exciting opportunities that lie ahead."

Minor Hotels reported core net profit of Baht 1.9 billion in 4Q22, a yoy increase of 57% from 4Q21 and a q-q increase of 25% from 3Q22. MINT's system-wide RevPar for the entire portfolio experienced a significant yoy increase of 58% in 4Q22, exceeding pre-pandemic levels by 25%, largely driven by a surge in global travel demand and Minor Hotels' pricing strategy. In 4Q22, Thailand's RevPar recovered to pre-COVID-19 levels for the first time since the pandemic, due principally to an increase in room rates. During the quarter, Minor Hotels opened the Anantara Plaza Nice Hotel in France and The Plaza Doha by Anantara in Qatar and introduced the NH brand to Asia with the debut of NH Boat Lagoon Phuket Resort in Thailand. These additions bolstered Minor Hotels' hotel portfolio, which grew to 531 hotels and 76,996 rooms in 56 countries as at end 2022.

Minor Food's core profit in 4Q22 grew to Baht 402 million, reflecting both yoy and qoq growth, attributable to stronger performance from Thailand and Australia hubs due to new store formats and successful sales and marketing initiatives that increased customer engagement. During the quarter, MINT entered into a joint venture transaction for a 50.1% stake in GAGA Beverages to expand into the beverage retail business in Thailand.

In addition to strengthening operational performance, MINT focused on improving its financial leverage and net debt-to-equity ratio, which fell to 1.17x at end of 2022. MINT further solidified its equity base through business recovery and the exercise of warrants. Free cash flow remained positive at Baht 2.9 billion in 4Q22 and at Baht 10.9 billion in year 2022. 

Since September 30, 2022, MINT's share price has recovered to THB 32.25 on December 31, 2022. At this price, the value of Symphony's holding in MINT is equal to US$65.7 million at the current Thai baht exchange rate.

LIFESTYLE/ REAL ESTATE

Minuet Limited ("Minuet"): is a joint venture between the Company and a  Thai partner. The Company has a direct 49% interest in the venture and is considering several development and/or sale options for the land owned by Minuet, which is located in close proximity to central Bangkok, Thailand. Since the original investment, several parcels of land have been sold to local developers and a large piece has been used to develop the Wellington International School in Bangkok. As at 31 December 2022 Minuet held approximately 186.75 rai (29.88 hectares) of land in Bangkok, Thailand.

Company Update: The value of Symphony's interest at 31 December 2022 was US$61.1 million based on an independent third party valuation. This compares with US$55.8 million at 30 September 2022. The change in value is predominantly due to an appreciation in the Thai baht by 8.6% and other minor movements in the assets and liabilities of Minuet.

Symphony's original investment in Minuet was $78.3 million. Total distribution receipts from partial sales of land have amounted to US$65.2 million. We believe, that barring unforeseen developments, and given the development activity in the area, the remaining land will enable us to realise proceeds well in excess of the current valuation.

SG Land Co. Ltd ("SG Land"): SIHL acquired approximately 50% of the outstanding shares of SG Land in a JV with Thai Factory Development ("TFD"). SG Land owns the leasehold rights to SG Tower and Millenia Tower, which are office buildings in central Bangkok, Thailand. The leases for the two buildings expire at the end of October 2022 and November 2025, respectively. As the end of the lease approaches, occupancy levels are expected to decline as tenant leases run-off.

Company Update: Year-to-date, Symphony received net distribution payments of US$1.2 million. We expect to continue to receive distributions from this investment through to the expiry of the leases.

As the building leases approach expiry, there has been a faster than expected decline in occupancy levels, which has led to a revision of our total expected return from this investment. Based on the latest information, we anticipate that this investment will give us a return of approximately 8.5% per annum over a period of approximately 16 years.

Niseko Property Joint Venture ("Niseko JV"): Symphony invested in a property development venture that acquired land in Niseko, Hokkaido, Japan. Symphony has a 37.5% interest in this venture, The Niseko JV sold 31% of the development site to Hanwha Hotels & Resorts with a further 39% to a new joint venture company that is equally held and being co-developed by the Niseko JV and the Hanwha Group. The Niseko JV continues to effectively hold approximately 50% of the total  site, which includes a 100% interest in one parcel of land which is being held for future development and/or sale.

Company Update: The 2022/2023 ski season in Niseko has been strong following the removal of restrictions on foreign tourist arrivals. Property sales have also rebounded, partially been driven by buyers taking advantage of a weaker yen.

Desaru Property Joint Venture in Malaysia: The Company has a 49% interest in a property joint venture in Malaysia with an affiliate of Destination Resorts and Hotels Sdn Bhd, a hotel and destination resort investment subsidiary of Khazanah Nasional Berhad, the investment arm of the Government of Malaysia. The joint venture has developed a beachfront resort with private villas for sale on the south-eastern coast of Malaysia and that are branded and managed by One&Only Resorts ("O&O"). The hotel operations were officially launched in September 2020.

Company Update: The One&Only Desaru Coast Resort had a strong Christmas and Chinese New Year period that benefited room occupancies and food and beverage facilities. Aside from increasing visitors from Singapore and around the region, the property is attracting longer-stay European visitors. The management has been working to activate weekday visitors from Singapore with some success. Symphony is working closely with its partners to officially launch sales of private residences during the latter half of 2023. 

Symphony invested an aggregate of US$58.8 million in the joint venture at 31 December 2022. The fair value on the same date was US$30.5 million. This compares to a fair value of US$25.5 million at 30 September 2022. 

HEALTHCARE

ASG Hospital Private Limited ("ASG"): is a full-service eye- healthcare provider with operations in India, Africa, and Nepal. ASG was founded in Rajasthan, India in 2005. ASG's operations have since grown to 52 clinics, which offer a full range of eye-healthcare services, including outpatient consultation and a full suite of inpatient procedures. ASG also operates an optical and pharmacy business, which is located within clinics. Symphony invested in ASG in tranches from October 2019 through to July 2020 and subsequently acquired secondary shares in October 2021.

Company Update: The group continued to expand operations with the number of clinics growing from 49 to 52 during the quarter. Revenue and EBITDA for the three-months ended December 2022 was 42.7% and 8.9% higher than the same period a year earlier. Total in and outpatient numbers grew by 35.0% and 31.4%, respectively, during the same comparative period. In March 2023, ASG took control of Vasan Health Care Pvt. Ltd., following regulatory approval. This acquisition expands the number of ASG's full service clinics to over 150 with a pan-India footprint.

Symphony's net investment cost in ASG was US$3.7 million at 31 December 2022. The fair value of Symphony's investment on the same date was US$28.3 million, which compares to US$25.7 million at 30 September 2022.

Soothe Healthcare Pvt. Ltd. ("Soothe"): was founded in 2012 and operates within the fast-growing consumer healthcare products market segment in India. Soothe's core product portfolio includes feminine hygiene and diaper products. Symphony completed an initial investment in Soothe in August 2019 and subsequently made investments through convertible notes and securities in 2020, 2021 and 2022.  

Company Update: Soothe's sales for the three-months ended 31 December 2022 was marginally higher compared to the same period a year earlier. Management's continued focus on improving margins has met with much success. EBITDA margins improved by 800 basis points on a quarter-over-quarter basis.

Symphony's gross and net investment cost in Soothe was US$12.8 million at 31 December 2022. The fair value of Symphony's investment on the same date was US$23.4 million, which compares to US$25.9 million at 30 September 2022. The difference in value is due to changes in certain assumptions used in the valuation for this investment.

LIFESTYLE

Liaigre Group ("Liaigre"): was founded in 1985 in Paris and is a brand synonymous with discreet luxury, and has become one of the most sought-after luxury furniture brands, renowned for its minimalistic design style. Liaigre has a strong intellectual property portfolio and provides a range of bespoke furniture, lighting, fabric & leather, and accessories. In addition to operating a network of 24 showrooms in 11 countries across Europe, the US and Asia, Liaigre has a Design Studio which undertakes exclusive  architecture and interior design projects for select yachts, hotels, restaurants and private residences.  

Company Update: Liaigre saw a pick-up in sales in Q4 2022 following the delivery of a high level of showroom orders and several large interior architecture projects. With the China showrooms fully opened, the group is also seeing growing sales in that region. Management continue to focus on improving supply chains to cater to a growing number of orders and projects.

Symphony's gross investment cost in Liaigre was US$79.7 million at 31 December 2022. The net cost on the same date, after deducting partial realisations, was US$67.6 million. The fair value of Symphony's investment was US$41.9 million at 31 December 2022. This compares to US$35.0 million at 30 September 2022. The difference in value is predominantly due to a stronger cash position following a high level of sales in Q4 2022 and strengthening of the Euro by 9.2%.

CHANINTR ("Chanintr"): Chanintr is a luxury lifestyle company, based in Thailand, which primarily distributes high- end U.S. and European furniture and household accessory brands, including Liaigre, Barbara Barry, Baker, Herman Miller, Marquee, Minotti, Bulthaup kitchens amongst others. Chanintr also provides FF&E solutions for real estate and hotel projects. In 2019, Chanintr launched a new program called Chanintr Residences which will showcase custom-designed luxury residences as turnkey projects.

Company Update: Chanintr's orders year to 31 December 2022 reached THB 1.5 billion, up 4.6% y-o-y and up 21.3% q-o-q. Despite facing numerous challenges during the year,  revenues increased, led by kitchen and wardrobe projects with major developers. Closed sales (firm orders with deposits) reduced 6% due to normalizing of demand post the Covid-19 surge experienced in 2021. The gross profit margin also improved thanks to price adjustments and contribution from  system projects. The soft launch of Spruce, the online furniture rental business, was successful and a larger launch is planned in April. The company has signed a multi-year licensing contract with Martha Stewart's Marquee brand, for residential and outdoor furniture for South East Asia.

Wine Connection Group ("WCG"): At the end of April 2014, Symphony invested WCG, one of Southeast Asia's leading wine themed Food and Beverage chains with approximately 86 outlets in Singapore and Thailand.

Company Update: Wine Connection continued to see a rebound in its business, particularly in Thailand. The management focus on transforming the Thai business by improving operating standards and product offering allowed the company to achieve the highest normalised profit level in its history. In early 2023, a binding agreement was entered into to sell this business at close to Symphony's original cost and at a premium to the value that this investment was held at 30 September 2022.

EDUCATION

WCIB International Co. Ltd. ("WCIB"):  Symphony entered into a joint venture with WCIB International Co. Ltd. ("WCIB"), that developed and operates Wellington College International Bangkok, the fifth international addition to the Wellington College family of schools from the UK. WCIB operates a co- educational school that began operations in August 2018 and will ultimately cater to over 1,500 students aged 2-18 years of age when all phases are fully complete.

Company Update: WCIB continued to perform ahead of budget, due to a higher than expected enrolment for the Lent Term. Management are optimistic on the outlook with growing admission enquiries. WCIB is on track to generate a profit in the current academic year.

Creative Technology Solutions DMCC ("CTS"): is a UAE-based company that provides technology solutions to K12 schools in the UAE and the Kingdom of Saudi Arabia ("KSA"). The company was founded in 2013 to provide customized IT solutions to the education sector, including hardware, software and training. Symphony made its investment in CTS in June 2019.

Company Update: CTS has continued to win new contracts with K12 and higher education institutions. With growing demand in the UAE for technology services, the company plans to open a new office in Abu Dhabi.

LOGISTICS

Indo Trans Logistics Corporation ("ITL"): was founded in 2000 as a freight-forwarding company and has since grown to become Vietnam's largest independent integrated logistics company with a network that is spread across Vietnam, Cambodia, Laos, Myanmar, and Thailand. ITL has grown to national champion status in Vietnam with over 2,000 employees across its business units and joint ventures. ITL's strategic plans include supporting small and medium enterprises in Vietnam and across the Indochina region. Symphony bought the shares that had originally been held by Singpost, the Singapore Post office, at a cost of $42.6 million for a roughly 28.6% interest. Following a subsequent issue of shares and share buybacks by ITL, Symphony's interest was 28.3% at 31 December 2022.

Company Update: The logistics sector continued to face headwinds in Q4 2022, a trend expected to continue through 2023. Slowing global consumption as a result of higher interest rates is affecting demand for exports from Asia. ITL continues to strategically expand certain divisions in order to position for future growth. Management remain optimistic on the long-term prospects for this business, particularly in light of the ongoing onshoring of manufacturing, increasing domestic consumption and growing intraregional trade. In March 2023, Symphony entered into a binding agreement with an existing investor, a large Asian logistics company, to sell a small amount of shares as part of a larger secondary transaction. The sale will complete at a price that is 5.52 times our cost of the shares sold.

Symphony's gross and net investment cost related to ITL at 31 December 2022 was US$42.6 and US$42.1 million, respectively. The fair value for Symphony's interest in ITL on the same date was US$152.3 million, which compares to US$131.0 million at 30 September 2022. 

NEW ECONOMY

Smarten Spaces Pte. Ltd. ("Smarten"):  In November 2019, Symphony invested in Smarten, a Singapore based SaaS (Software-as-a-Service) company that provides software solutions for space management in commercial and industrial properties. Smarten was founded in 2017 by Dinesh Malkani and offers an end-to-end solution for workplace flexibility on a single technology platform, to help businesses navigate the new hybrid workplace. The SaaS technology includes four key aspects - Desk Management, Workforce Rostering, Demand & Supply, Expenses & Chargeback, and Asset Management; bringing together key workforce and workplace considerations for a future-ready solution. 

Update: The adoption of the hybrid workplace model has led to a 3x growth in user activity in 2022, currently standing at more than 250,000 user transactions per month with clients including a number of Fortune 500 companies. Smarten Spaces currently operates in over 30 countries, with significant traction in North America representing 57% of the sales pipeline. The company has seen increasing deal closures which has led to a steady growth of the business with Q4 2022 revenue increasing 23.3% yoy.

August Jewellery Pvt. Ltd. ("Melorra"): Founded in January 2015, Melorra is an omni-channel fast fashion Indian jewellery company that introduces a fresh collection of 75 new designs every Friday, resulting in over 300 new designs per month. Melorra adopts a minimal inventory model that uses 3-D printing technology to achieve just-in-time manufacturing to bring products to market efficiently. The company currently has 23 operational experience centres across India.

Update:  In the fourth quarter Melorra crossed a milestone of achieving US$100 million in ARR (annualized revenue run-rate). Melorra has now entered the elite and limited club of D2C brands in India which are over US$100 million in run-rate. The company achieved the growth in revenue despite reducing marketing spends. The company is focused on achieving positive unit economics and achieving EBITDA breakeven in 2023. With the rapid increase in the price of gold Melorra launched 14KT and 18KT gold jewelry to make it more affordable for the customer. This initiative has been very successful. The 23 offline stores continued to perform on the back of a rapidly improving diamond ratio (diamonds as a share of merchandise mix) driving gross margins higher. The company saw 7 million visitors online, with the app installed based reaching 4.4 million and Monthly Active Users ("MAU") of 574k+.

Good Capital Partners and Good Capital Fund I ("Good Capital" or "GCP"): GCP is majority owned by brothers Rohan and Arjun Malhotra who have been investing their own capital since 2014 to create a thriving ecosystem of technology start-ups. Symphony announced its investment in July 2019 with a 10% stake in GCP and serving as an anchor investor in its first fund, GCF1.

Company Update: Good Capital Fund I made 2 fund investments in the quarter. There were 8 Bharat Founders Fund ("BFF") investments in the quarter, where the cheque size is US$25,000. The Fund's cumulatively deployed capital is currently US$10.9 million across 15 core fund investments and 48 Bharat Founders Fund investments ("BFF"). Currently, the Fund is in closing conversations for 1 new core investment and 8 BFF investments in the pipeline. At an aggregate level, the MOIC at the close of this quarter is approximately 2.28x.

Catbus Infolabs Private Limited ("Blowhorn"): In August 2021, Symphony invested in Catbus Infolabs Private Limited, the owner of the Blowhorn platform. Blowhorn is a same-day intra-city last-mile logistics provider headquartered in Bangalore, India. The company provides seamless transportation, warehousing, and a fully technologically integrated system to manage the end-to-end supply chain process through an asset-light transportation and distributed micro-warehousing network. The company currently serves enterprise customers and more than 150 brands with an active presence in more than 100 cities across India.

Company Update: The growing adoption of e-commerce and direct-to-consumer business models in India is increasing demand for same-day intra-city logistics services. Blowhorn's asset-light full-stack solution is well positioned to scale and capitalise on this market opportunity and the company is seeing steady growth of the business with December 2022 LTM revenue increasing 10% yoy. The company has been building up the fulfilment and warehousing business which is seeing good traction with revenue increasing 76% yoy and is now representing 22% of total revenue.

House of Kieraya Private Limited ("Furlenco"): Founded in October 2012 in Bangalore, India, Furlenco is a residential furniture rental services business. The business has since expanded to include Furbicle, a brand selling refurbished & recycled furniture; UNLMTD, an annual furniture and appliance subscription service; Prava, which sells high-end retail furniture and KreateOne, an in-house furniture manufacturing facility.

Company Update: The House of Kieraya ("HOK") saw customer collections remaining flat in the last quarter. The company has started increasing marketing spends to restart the growth in customer acquisitions. With the introduction of sale of furniture in addition to rental furniture, the company has introduced a new concept to the Indian consumer called "basket of access" which allows customers to access furniture in an innovative & flexible manner. The company's UNLMTD plan, where for a fixed rental a customer can rent up to 15 items of furniture, saw renewals  in the last quarter which helped grow the cash collections of the company. The company also introduced KreateOne, an inhouse manufacturing facility which will enable the company to generate higher margins on the furniture leased or sold.

Meesho, Inc ("Meesho"): Founded in March 2016 in Bangalore, India, Meesho is a social e-commerce platform to sell to the next 500 million Indians coming online. Meesho is the most downloaded app globally and is currently the third largest e-commerce platform in India behind Flipkart and Amazon.

Company Update: Meesho has pivoted from its social commerce roots which was being a women-focused, reseller-led, and zero-commission model to selling directly to consumers; however, the company still does not charge commissions and is focused on monetization of advertising from sellers on their platform. Meesho  earns over 70% of its revenues from selling wares to consumers directly. It boasts over 122 million monthly active users, including 35 million who transact monthly. Vidit Aatrey, the Founder & CEO, told a news channel that they have changed their goals from growth to profitability with the target to be EBITDA positive by the end of 2023. The company continues to use third party logistics providers ("3PL") unlike Flipkart and Amazon, as they believe their customers are more focused on cost than on delivery experience.

SolarSquare Energy Private Limited ("Solar Square"): SolarSquare was founded in 2015 and is a rooftop solar power services company that focuses on residential homes, primarily standalone houses, gated societies, and small commercial centres. The company aims to make clean energy affordable and accessible and become the trusted brand in the space.

Company Update: Solar Square had a strong fourth quarter with approx. 1200 homes acquired; on a cumulative basis the company has acquired 5500+ homes. In terms of monthly volume, Solar Square is now the 2^nd largest residential solar power company in India, behind Tata Solar. In October 2022 the company closed a Series A round with Elevation Capital and Lowercase Carbon leading the round. The company is currently streamlining their organization design and is working on improving their NPS ("Net Promoter Score"), which is a way of measuring customer satisfaction, by improving the post sales experience.

MAVI Holding Pte. Ltd. ("MAVI"): In December 2022 Symphony invested in MAVI, a B2B insurance and warranty programme administration services company headquartered in Singapore with operations in India, Thailand, and Singapore.

Company Update: Household wealth is growing in South and South-East Asia with the middle class expanding rapidly. Yet these regions are highly under-insured with a lack of access to insurance products. MAVI is an early-stage start-up business with a goal to develop insurance products that are accessible, competitively priced, and tailored for the Asian markets. The company will provide insurance and warranty programme management services and partner with insurance and carriers in the region to bring these products to market.

SUBSEQUENT EVENTS

·    Subsequent to 31 December 2022, Symphony completed a new investment in Isprava Vesta Private Limited. The total consideration was less than 5% of NAV

·    Subsequent to 31 December 2022, Symphony sold 6.30 million shares of MINT and 6.1 million warrants for a total net consideration of US$7.75 million

·    Subsequent to 31 December 2022, Symphony completed a second tranche of its investment in Mavi Holding Pte. Ltd. The total consideration was less than 1% of NAV

For further information:

Symphony Asia Holdings Pte. Ltd.:      

Anil Thadani                                       +65 6536 6177

Rajgopal Rajkumar

Dealing codes

The ISIN number of the Ordinary Shares is VGG548121059, the SEDOL code is B231M63 and the TIDM is SIHL.

The LEI number of the Company is 254900MQE84GV5DS6F03.

Notes:

NAV takes into account the fair value of unrealised investments. In accordance with the valuation policies of the Company, real estate related investments are valued by third parties on 30 June and 31 December each year. In addition and in accordance with the Company's valuation policies, investments that have been held for less than 12-months are held at cost unless there is evidence of a diminution in the value of that investment. Although the investment manager believes there not to be a diminution in the value of investments held for less than 12- months, the Covid-19 pandemic has led to a significant increase in economic uncertainty which is evidenced by more volatile asset prices and currency exchange rates and therefore cost may not correspond to an appropriate measure of fair value in the current environment.

IMPORTANT INFORMATION

A more detailed Shareholder Update is available on request from the Company and can be accessed via www.symphonyasia.com.

THIS DOCUMENT IS NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION, IN WHOLE OR IN PART, DIRECTLY OR INDIRECTLY, IN OR INTO THE UNITED STATES OR ANY OTHER JURISDICTION INTO WHICH THE PUBLICATION OR DISTRIBUTION WOULD BE UNLAWFUL. THESE MATERIALS DO NOT CONSTITUTE AN OFFER TO SELL OR ISSUE OR THE SOLICITATION OF AN OFFER TO BUY OR ACQUIRE SECURITIES IN THE UNITED STATES OR ANY OTHER JURISDICTION IN WHICH SUCH OFFER OR SOLICITATION WOULD BE UNLAWFUL. THE SECURITIES REFERRED TO IN THIS DOCUMENT HAVE NOT BEEN AND WILL NOT BE REGISTERED UNDER THE SECURITIES LAWS OF SUCH JURISDICTIONS AND MAY NOT BE SOLD, RESOLD, TAKEN UP, TRANSFERRED, DELIVERED OR DISTRIBUTED, DIRECTLY OR INDIRECTLY, WITHIN SUCH JURISDICTIONS.

NO REPRESENTATION OR WARRANTY IS MADE BY THE COMPANY OR ITS INVESTMENT MANAGER AS TO THE ACCURACY OR COMPLETENESS OF THE INFORMATION CONTAINED IN THIS DOCUMENT AND NO LIABILITY WILL BE ACCEPTED FOR ANY LOSS WHATSOEVER ARISING IN CONNECTION WITH SUCH INFORMATION.

THIS DOCUMENT CONTAINS (OR MAY CONTAIN) CERTAIN FORWARD-LOOKING STATEMENTS WITH RESPECT TO CERTAIN OF THE COMPANY'S CURRENT EXPECTATIONS AND PROJECTIONS ABOUT FUTURE EVENTS. THESE STATEMENTS, WHICH SOMETIMES USE WORDS SUCH AS "ANTICIPATE", "BELIEVE", "COULD", "ESTIMATE", "EXPECT", "INTEND", "MAY", "PLAN", "POTENTIAL", "SHOULD", "WILL" AND "WOULD" OR THE NEGATIVE OF THOSE TERMS OR OTHER COMPARABLE TERMINOLOGY, ARE BASED ON THE COMPANY'S BELIEFS, ASSUMPTIONS AND EXPECTATIONS OF ITS FUTURE PERFORMANCE, TAKING INTO ACCOUNT ALL INFORMATION CURRENTLY AVAILABLE TO IT AT THE DATE OF THIS DOCUMENT. THESE BELIEFS, ASSUMPTIONS AND EXPECTATIONS CAN CHANGE AS A RESULT OF MANY POSSIBLE EVENTS OR FACTORS, NOT ALL OF WHICH ARE KNOWN TO THE COMPANY AT THE DATE OF THIS ANNOUNCEMENT OR ARE WITHIN ITS CONTROL. IF A CHANGE OCCURS, THE COMPANY'S BUSINESS, FINANCIAL CONDITION AND RESULTS OF OPERATIONS MAY VARY MATERIALLY FROM THOSE EXPRESSED IN ITS FORWARD-LOOKING STATEMENTS. NEITHER THE COMPANY NOR ITS INVESTMENT MANAGER UNDERTAKE TO UPDATE ANY SUCH FORWARD LOOKING STATEMENTS

STATEMENTS CONTAINED IN THIS DOCUMENT REGARDING PAST TRENDS OR ACTIVITIES SHOULD NOT BE TAKEN AS A REPRESENTATION THAT SUCH TRENDS OR ACTIVITIES WILL CONTINUE IN THE FUTURE. THE INFORMATION CONTAINED IN THIS DOCUMENT IS SUBJECT TO CHANGE WITHOUT NOTICE AND, EXCEPT AS REQUIRED BY APPLICABLE LAW, NEITHER THE COMPANY NOR THE INVESTMENT MANAGER ASSUMES ANY RESPONSIBILITY OR OBLIGATION TO UPDATE PUBLICLY OR REVIEW ANY OF THE FORWARD-LOOKING STATEMENTS CONTAINED HEREIN. YOU SHOULD NOT PLACE UNDUE RELIANCE ON FORWARD-LOOKING STATEMENTS, WHICH SPEAK ONLY AS OF THE DATE OF THIS ANNOUNCEMENT.

THIS DOCUMENT IS FOR INFORMATION PURPOSES ONLY AND DOES NOT CONSTITUTE AN INVITATION OR OFFER TO UNDERWRITE, SUBSCRIBE FOR OR OTHERWISE ACQUIRE OR DISPOSE OF ANY SECURITIES OF THE COMPANY IN ANY JURISDICTION. ALL INVESTMENTS ARE SUBJECT TO RISK. PAST PERFORMANCE IS NO GUARANTEE OF FUTURE RETURNS. SHAREHOLDERS AND PROSPECTIVE INVESTORS ARE ADVISED TO SEEK EXPERT LEGAL, FINANCIAL, TAX AND OTHER PROFESSIONAL ADVICE BEFORE MAKING ANY INVESTMENT DECISIONS.

THIS DOCUMENT IS NOT AN OFFER OF SECURITIES FOR SALE INTO THE UNITED STATES. THE COMPANY'S SECURITIES HAVE NOT BEEN, AND WILL NOT BE, REGISTERED UNDER THE UNITED STATES SECURITIES ACT OF 1933 AND MAY NOT BE OFFERED OR SOLD IN THE UNITED STATES ABSENT REGISTRATION OR AN EXEMPTION FROM REGISTRATION. THERE WILL BE NO PUBLIC OFFER OF SECURITIES IN THE UNITED STATES.

NEITHER THE CONTENT OF THE COMPANY'S WEBSITE (OR ANY OTHER WEBSITE) NOR THE CONTENT OF ANY WEBSITE ACCESSIBLE FROM HYPERLINKS ON THE COMPANY'S WEBSITE (OR ANY OTHER WEBSITE) IS INCORPORATED INTO, OR FORMS PART OF, THIS DOCUMENT.

TO ENSURE THE COMPANY'S COMPLIANCE WITH SUB-SECTION 8(3)(A)(I) OF THE PRIVATE INVESTMENT FUNDS REGULATIONS, 2019, THE DIRECTORS WILL KEEP THE FINANCIAL SERVICES COMMISSION OF THE BRITISH VIRGIN ISLANDS INFORMED OF THE NUMBER OF SHAREHOLDERS ON THE COMPANY'S REGISTER OF SHAREHOLDERS.

THE COMPANY AND THE INVESTMENT MANAGER ARE NOT ASSOCIATED OR AFFILIATED WITH ANY OTHER FUND MANAGERS WHOSE NAMES INCLUDE "SYMPHONY", INCLUDING, WITHOUT LIMITATION, SYMPHONY FINANCIAL PARTNERS CO., LTD.

End of Announcement