Sycomore Happy@Work

2020 RESPONSIBLE RE INVESTOR REPORT PORT SYCOWAY AS AN INVESTOR SYCOMORE HAPPY@WORK

Report published on December 31st, 2020, pertaining to the Sycomore Happy@Work fund. INTR ODU CTI ION

This report concerns the Sycomore Happy@Work fund, a portfolio of stocks selected on the basis of sustainability criteria and certified as a Socially Responsible Investment (SRI label developed and supported by the French Economy & Finance Ministry). It should be read together with Sycomore AM’s Responsible Investor Report. This publication provides details on the sustainability criteria applied to the fund’s investment process and on the sustainability performances of our investments as of December 31st, 2020.

This report meets the requirements of the SRI Label on the disclosure of the fund’s environmental, social, governance and human rights performance..

It complements the AFG-FIR-Eurosif Transparency Code applicable to SRI-labelled funds, which provides details on the methods and means deployed for the management of SRI strategies. For purposes of consistency, the report also complies with the requirements of the Article 173-VI of law n°2015-992 of August 17th 2015 on the “energy transition for green growth”. Sycomore AM has chosen to publish these reports for all of its SRI-labelled funds.

For more information on the methods and resources used for the sustainable development- driven analysis of the companies that make up our investment universe, please consult Sycomore AM’s Responsible Investor Report.

The fund comes with no income or performance guarantees and carries a risk of capital loss. Before investing, please read the fund’s Key Investor Information Document available on our website: www.sycomore-am.com. The indicators are based on the most recent data published by companies (2020 or 2019 in most cases). The ESG performances shown below are those of companies in which the fund owned shares as of December 31st, 2020 and are not a representation of the fund’s direct contribution to these performances. The SRI Label, created and supported by the French Ministry of Finance, is designed to help retail investors with the identification of responsible and sustainable strategies. The Label serves as a guide for investors but offers no guarantees on the capital invested and does not certify the quality of the management SYCOMORE HAPPY@WORK 2 2020 REPORT implemented within the fund. SOM MAI RE

SYCOMORE HAPPY@WORK, 01 an SRI-LABELLED fund P4-5

Sustainability performance of 02 SYCOMORE HAPPY@WORK P6-10

Our ENGAGEMENT and VOTING 03 at Shareholders’ Meetings P11-19

04 Looking for IMPACT P20-24

SYCOMORE HAPPY@WORK 2020 REPORT 3 SYCOMORE HAPPY@WORK, 01 an SRI-LABELLED fund

Our FUND

AN SRI-LABELLED FUND, WITH INVESTMENT DECISIONS DRIVEN BY INTEGRATED SUSTAINABILITY CRITERIA

Launched in 2015, Sycomore Happy@Work invests in European companies that pay particular attention to the value of their human capital as a primary driver for sustainable performance. Stock selection is based on thorough fundamental analysis, including embedded sustainable development research, with a specific focus on social factors. This analysis process draws on the SPICE model, described in our ESG (Environment, Social and Governance)(1) Integration Policy. Recommendations from experts, human capital managers, employees and on-site visits provide further input.

By selecting companies that value their human capital as a key driver for sustainable performance, the fund seeks to have a positive impact on social issues such as those highlighted in the UN’s Sustainable Development Goals. This focus on positive impacts takes place at three levels: Intentionality – The stock selection and portfolio construction process described below is founded upon social criteria developed to assess how a company manages its human capital; the targets to be met are a direct reflection of the fund’s intentionality; Additionality – At the heart of our approach as responsible investors, promoting best human capital management practices throughout the corporate world - which we carry out through our shareholder engagement as described in chapter 3 - drives an improvement in performances; Impact measurement – Measuring the social impacts of our investments enables us to assess their alignment with the fund’s intention: we are currently developing our impact measurement approach and, this year, will be presenting (in chapter 4) several social indicators, as well as the contribution of portfolio companies to the United Nations’ Sustainable Development Goals, with a specific focus on social factors.

SYCOMORE HAPPY@WORK 4 2020 REPORT (1) Our ESG Integration Policy is available on our website. In keeping with the fund’s intention to generate positive social impacts, the investment universe of Sycomore Happy@Work takes into account the following screenings, which include both sustainable development criteria and social criteria:

• Exclusion of main ESG risks: this screening is designed to remove companies displaying poor management of sustainable development challenges or weak performances in this area, with particular attention paid to human capital management. These risks can weaken the resilience of companies and threaten their competitiveness. Details of the exclusion criteria are provided in the graph below; they are determined based on the SPICE rating and on any controversies. • Selection of companies with exemplary social practices: the objective of this screening is to identify companies that clearly emphasise human capital and foster employee fulfilment and engagement, recognising that these factors are key to their sustainable performance. Screened companies are required to meet the selection criteria shown in the graph below:

Our FILTERS

SPICE RATING AND CONTROVERSIES

SPICE rating People controversies > 2 Points 01 < 3/5 or SPICE controversies > 10 Points EXCLUSION

INTEGRATION OF HUMAN CAPITAL ≥ 3/5 02 Executive vision, crisis & growth management, health & safety

HAPPY@WORK ENVIRONMENT > 3.5/5 03 Purpose, empowerment, skills, relations, equity SELECTION

EMPLOYEE SURVEYS AND REVIEWS ≥ 3/5 04 On-site visits, employee satisfaction surveys, external reviews and rankings

ENGAGEMENT WITH PORFOLIO COMPANIES 05 Sharing of best practices, transparency and continual improvement DIALOGUE

For more information on the fund’s exclusion and selection approaches, please refer to the Transparency Code. SYCOMORE HAPPY@WORK The fund’s main characteristics are available on the fund’s webpage. 2020 REPORT 5 Sustainability performance of 02 SYCOMORE HAPPY@WORK

The SPICE RATING

Our SPICE fundamental analysis model(2) is one of the main tools used to assess the sustainable development performances of our investments.

As of December 31st 2020, the weighted SPICE ratings of investments held in the Sycomore Happy@Work fund are noticeably higher than those of the benchmark. The fund’s People rating of 3.9/5 versus 3.4 for the EuroStoxx TR(3) index is a direct upshot of the selection criteria applied to the strategy.

2018 2019 2020

3,7 3,8 3,8 S P I C E 3,3 3,3 3,5

3,6 3,6 3,7 Governance 3,4 3,4 3,4

3,7 3,9 3,9 People 3,2 3,3 3,4

3,4 3,3 3,5 Society & Suppliers 2,9 2,9 3,2

3,4 3,3 3,3 Environment 3,1 3,1 3,2

Sycomore Happy@Work EuroStoxx TR

2020 coverage ratio (weight): 100% - H@W / 99% - EuroStoxx TR 2020 coverage ratio (number): 100% - H@W / 99% - EuroStoxx TR

(2) SPICE for Society & Suppliers, People, Investors, Clients and Environment. For more information on our fundamental analysis model, please consult our ESG Integration Policy, available on our website. SYCOMORE HAPPY@WORK (3) DJ EuroStoxx Total Return, dividends reinvested: launched on December 31st 1991, this index measures the performance of listed stocks in Eurozone 6 2020 REPORT countries. With around 300 constituents, the index uses the float of each stock to determine its weight. Our INDICATORS

This performance is also measured using specific indicators focused on social, environment, governance and human rights issues. In light of the fund’s selection criteria, social indicators will naturally display better results.

As far as social challenges are concerned, we look at the headcount over 3 years: we assess a company’s ability to create employment based on the change (positive or negative) in cumulated staff numbers, and their stability, over the past 3 financial years. The indicator includes changes in headcount due to acquisitions or disposals. As of end 2020, the fund displays a significant headcount growth over three years (+29%) compared to the index (+21%).

This percentage is consistent with the results observed last year, considering the relative stabilisation of the fund’s assets under management and of the companies owned by the portfolio. This year, the Dutch payment services company Ayden stood out as the leading contributor to performance with an organic growth of 162% over 3 years. The jobs created by the company mostly target young graduates in tech areas. Leading contributors also included companies active in the energy and environmental transition, such as Alfen (151%) and Voltalia (93%). Conversely, other companies saw a decline in their overall headcounts. These include BMW (-7%), the German car manufacturer, which has implemented several restructuring plans, following consultation with trade unions, to support its transformation.

EMPLOYMENT Headcount over 3 years

35% 29% 30% 26%

25% 24%

20% 21% 18% 15% 15%

10%

0% 2018 2019 2020

Sycomore Happy@Work EuroStoxx TR

2020 coverage ratio (weight): 99% - H@W/ 96% EuroStoxx TR 2020 coverage ratio (number): 97% - H@W / 91% EuroStoxx TR SYCOMORE HAPPY@WORK 2020 REPORT 7 Sustainability performance of 02 SYCOMORE HAPPY@WORK

On governance issues, we examine the percentage of women at Executive level: the difference between the percentage of women on the Executive Committee and in the total headcount is a meaningful indicator of the company’s ability to promote diversity and equal opportunities within the organisation. Although many companies report on the percentage of women in management positions, these disclosures relate to varying levels in the company hierarchy and the underlying “management” positions often differ from one company to the next. In order to use homogeneous data that can be cumulated at fund level, we have opted for the percentage of women on the Executive Committee. In 2020, the feminization of Executive Committees in the companies owned by Sycomore Happy@ Work was higher than in the index, though the percentage of women in the headcount was equivalent. Companies operating within the retail industry, such as Maisons du Monde or Ulta Beauty, have performed particularly well on this indicator, with women accounting for 50% and 40% of Executive Committee members, respectively. Conversely, industrial sector companies – such as Prysmian and ASML, need to improve on the promotion of female talents, as none of the top management positions are held by women. Furthermore, the addition of more Japanese companies to the portfolio, such as Asahi and Advantest, also weighed on the fund’s aggregate performance on this indicator compared to the previous year. Diversity at Executive Committee level has been an engagement priority for Sycomore AM since 2018 and was the subject of several dedicated shareholder initiatives in 2020 (see Engagement paragraph on page(4). We shall continue our efforts and monitor these indictors very closely with a view to improving results.

MALE/FEMALE DIVERSITY Feminization of Executive Committee

2018 2019 2020

Sycomore 36% 38% 38% Happy@Work 16% 18% 19%

37% 37% 36% EuroStoxx TR 14% 14% 20%

Percentage of women on payroll Percentage of women on payroll Percentage of women on Executive Committee Percentage of women on Executive Committee

2020 coverage ratio (weight): 98% (payroll) and 100% (executive) for H@W / 86% and 99% - EuroStoxx TR 2020 coverage ratio (number): 95% (payroll) and 100% (executive) for H@W / 80% and 98% - EuroStoxx TR

SYCOMORE HAPPY@WORK 8 2020 REPORT As far as human rights are concerned, we look at the percentage of companies having drawn up a formal policy: we assess corporate engagement on human rights issues by looking at whether the company has defined a strategy and implemented a relevant policy. To this effect, we have selected an indicator provided by Bloomberg, identifying companies that communicate on the implementation of a policy relating to human rights. Note that we have not chosen an indicator based on the controversies that affect the company. We consider that the number of controversies is neither representative of a company’s engagement, nor of the means deployed in addressing human rights issues: the number of controversies depends on the size of the company and on its media exposure and does not necessarily reflect the procedures implemented with a view to addressing the controversial event. In 2020, the percentage of companies having drawn up a formal human rights policy within the fund is high and up compared to 2019 (82%), but nevertheless remains lower than for EuroStoxx constituents (95%). This relative underperformance is due to the higher percentage of small and mid-caps within the fund, companies that have committed to complying with human rights in their corporate publications but have not drawn up a formal human rights policy. In 2020, in keeping with our shareholder engagement on this issue, we wrote and published our own Human Rights policy. As part of the deployment of this policy, we shall draw up an engagement action plan in 2021 aimed at supporting companies within our investment universe with identifying, managing, and mitigating the risks of human rights violations.

HUMAN RIGHTS Percentage of companies with a human rights policy

2018 2019 2020

97% 80% 82%

Sycomore Happy@Work

2018 2019 2020

93% 94% 95%

EuroStoxx TR

Policy in place No policy Policy in place No policy

2020 coverage ratio (weight): 100% - H@W / 89% - EuroStoxx TR 2020 coverage ratio (number): 100% - H@W / 88% - EuroStoxx TR

For further information on the methodology used to calculate the indicators, please refer to the Protocol for ESG performance reporting SYCOMORE HAPPY@WORK available on our website. 2020 REPORT 9 Sustainability performance of 02 SYCOMORE HAPPY@WORK

On Environmental issues, the NEC: we assess the alignment of our investments with the environmental and energy transition through the Net Environmental Contribution. As of December 31st 2020 the NEC(4) of Sycomore Happy@Work stands at +3%(5), while the NEC of the EuroStoxx TR index is +1%(5). Note that this indicator is not among the fund’s primary objectives; as a result, it is likely to evolve as a result of our stock picking. For example, the two top contributors to the fund’s NEC this year were EDP Renovaveis and Voltalia, both renewable energy players (+99%), and Smurfit Kappa (+76%), leader in forest management and in the production of cardboard packaging. Conversely, Ferrari (-100%) and Amadeus (-57%), operating in the automobile and aircraft industries, weighed on the fund’s overall NEC.

NET ENVIRONMENTAL CONTRIBUTION

2018(5) 2020(5)

4% 3% EuroStoxx TR 2020(5) Sycomore Happy@Work 1% -100% 100%

-1% -1% -1%

2018(5) 2019(5) 2019(5)

2020 coverage ratio (weight): 93% - H@W / 97% - EuroStoxx TR 2020 coverage ratio (number): 90% - H@W / 96% - EuroStoxx TR

(4) Net Environmental Contribution: developed by Sycomore AM in partnership with I Care&Consult and Quantis, the NEC measures the extent to which a company’s business model is aligned with the environmental and energy transition and global warming targets, business by business. For SYCOMORE HAPPY@WORK more information, please consult our Natural Capital Strategy available on our Responsible Approach page.. 10 2020 REPORT (5) NEC ß calculated by Sycomore AM, I Care & Consult and Quantis on the basis of 2017, 2018, 2019 and 2020 data. Our ENGAGMENT and VOTING at Shareholders’ Meetings 03

Shareholder DIALOGUE

Shareholder dialogue with the companies is a key tenet of our work as investors: During the analysis process, we put a strong emphasis on meetings with management and on-site visits. Our objective is to gain the best possible understanding of the company based on its day-to-day activities and the vision of its managers. Analyse When preparing our votes at shareholders’ meetings, we discuss our voting intentions with the companies and inform them of our voting policy and of the best practices we advocate.

These talks enable us to identify and recommend best practices, notably in areas of governance, human rights, or on social, societal, and environmental issues. We encourage companies to integrate these challenges as a core strategic axis, and to improve transparency Dialogue on the means in place and the results achieved.

In keeping with the investment strategy applied to the Sycomore Happy@Work fund, our shareholder dialogue also touches upon human capital issues. These interactions enable us to gain insights into the management’s vision and to encourage the adoption of best practices. The meetings are also an opportunity to work on tangible areas for improvement that will contribute to raising the quality of life at work. Any progress made by companies can increase their positive impacts on social challenges. Convinced in the potential power of collaborative actions, we have also been members of the Human Capital Management Coalition since 2016 and of the Workforce Disclosure Initiative since 2018, two investor groups actively working on the development of corporate social reporting.

Human Capital

SYCOMORE HAPPY@WORK 2020 REPORT 11 Our ENGAGMENT and VOTING 03 at Shareholders’ Meetings

SHAREHOLDER ENGAGEMENT

In 2020, we formally engaged with 25 portfolio companies (31 in 2019) having identified 51 areas for improvement during the year (down from 77 in 2020). We reported fewer areas for improvement in 2020. This figure is lower as we chose to continue with the dialogue initiated in previous years – ahead of shareholders’ meetings - and to deploy targeted engagement initiatives, focusing notably on how the value created by the company is shared between stakeholders in the context of the health crisis. We were also less demanding on long-term issues due to the short-term operational challenges that companies were facing due to the Covid crisis. 24 of these shareholders’ engagement initiatives directly concerned corporate governance (the I pillar of the SPICE analysis). These engagement initiatives frequently take place ahead of the shareholders’ meetings – a period that is particularly suited to holding these discussions with companies. The main issues that were raised included executive compensation and the structure of the Board of Directors. Areas for improvement also mostly covered human capital issues, which account for 22% of engagement initiatives in 2020. The issues that were raised included diversity, formal employee engagement surveys and transparency on labour-related data.

E C 10% S 2% 19% Society S & Suppliers P People

I Investors

C Clients

P E Environment I 22% 47%

SYCOMORE HAPPY@WORK 12 2020 REPORT The list of companies we engaged with is available in appendix. Our ENGAGMENT and VOTING at Shareholders’ Meetings 03

DIVERSITY

WE CONTINUED OUR SHAREHODLER ENGAGEMENT ON GENDER EQUALITY IN THE WORKPLACE

Despite growing awareness on the issues of gender equality at work, the percentage of women in senior management positions has only increased marginally in recent years. And yet, the presence of women in these executive roles is both a key driver for the promotion of gender equality at all levels of the company and an asset for ensuring the pluralism of views within the management teams. This was the context in which we launched our engagement campaign on gender equality at work in 2018. After holding talks with companies featuring in our investment universe in 2019, we joined, in 2020, several initiatives and partnered up with other investors to broaden the scope of our engagement action and develop a deeper knowledge of best corporate practices in the field of diversity. In this respect, we organised a thematic event with the Workforce Disclosure Initiative (WDI) and took part in the creation of the French arm of the Club 30% Investor Group, along with Amundi, AXA Investment Managers, La Banque Postale Asset Management and two affiliates of Natixis Investment Managers, Mirova and Ostrum Asset Management.

THEMATIC EVENT FOR COMPANIES AND INVESTORS WITH THE WORKFORCE DISCLOSURE INITIATIVE In January 2020, we organised a thematic conference on “Women at work: how investors and companies can facilitate women’s access to senior management roles” which was held at Sycomore AM’s premises. In partnership with the WDI, we invited asset managers and portfolio companies to discuss ideas on the challenges and opportunities relating to the recruitment, talent retention, training, and fulfilment at work, from a female perspective and from workshop to board room. Working with other companies, we shared our views on the hurdles preventing data collection, on cross-communication, the setting of targets and best practices in this area. These debates helped to create a joint understanding of the challenges that can be found on both sides and to set a basis for constructive action. The key takeaways included the fact that investors are still believed not to pay much attention to gender parity in management positions. Furthermore, while setting quantitative targets for diversity and gender inclusivity tends to be unrealistic, the exercise is sometimes necessary, as it provides a clear direction for the company to follow. Implementing constructive practices will require focusing on how these measures are managed: the monitoring of indicators is fundamental for understanding whether the measures are having the desired impact. For example: the uptake of paternity leave or the retention of women after a maternity leave. Certifications were also discussed: these are not key drivers but can clearly point companies in the right direction.

SYCOMORE HAPPY@WORK 2020 REPORT 13 Our ENGAGMENT and VOTING 03 at Shareholders’ Meetings

THE CLUB 30% FRANCE

By bringing together the engagement and voting rights of its member companies, the Club 30% France aims to increase the representation of women across the senior management teams of SBF 120 index companies to a minimum of 30% by 2025. Our intention is not to set compulsory quotas but to encourage companies deploying voluntary approaches with a view to implementing significant and sustainable change.

Through our collaboration with other investors, we shall initiate a dialogue with companies (including executive directors, heads of human resources, members of the board, appointments committees) on the issue of diversity among senior management and shall encourage a better representation of women, particularly in operational roles.

OTHER EXAMPLES OF ENGAGEMENT INITIATIVES

MONITORING EMPLOYEE FEEDBACK THROUGH GLASSDOOR

After noticing that several comments published on Glassdoor (website allowing employees to assess their working conditions) mentioned poor levels of motivation, notably due to the company’s rapid pace of growth, we drew Hello Fresh’s attention to these comments. We suggested that the company launch an action plan designed to drive employee engagement and improve internal communication.

SYCOMORE HAPPY@WORK 14 2020 REPORT ENGAGEMENT FOLLOWING A CONTROVERSY: THE CASE OF UBISOFT

We held several discussions with Ubisoft in 2020 when employees of Ubisoft studios in different countries and at headquarters reported inappropriate behaviour towards women and sexual harassment from management staff, including from two vice-presidents, in social media.

While we hesitated about selling our position, we were reassured by Ubisoft’s overall quality as an employer and by the swift and firm response from Yves Guillemot, the group’s CEO. Grasping the gravity of the accusations, he set up a crisis unit, announced that in-house investigations would be held and promised that deep changes would be made to the company’s corporate culture. In this regard, the departure of several key members of senior management, including HR Director Cécile Cornet and the group’s “second in command” Serge Hascoët, was a strong signal and generally well received by the worker organisations.

The appointment of a Head of Workplace Culture, the launch of employee feedback groups across all Ubisoft facilities, the creation of a questionnaire for all employees worldwide, the appointment of a Head of Diversity and Inclusion and the full review of procedures and policies to ensure their compliance with best practices, in partnership with a leading consultancy firm in this area, were also important measures that will support the shift in corporate culture and limit the risk of diversity principles being disregarded.

The discussions we held with the company also provided with an opportunity to issue recommendations for improvement on the issue of diversity: supporting the United Nations’ Principles in favour of female empowerment, disclosing female promotion and turnover ratios, answering the Workforce Disclosure Initiative survey.

In 2021, we shall monitor the progress made by the company on these issues and will be particularly vigilant, over time, on the effective change in corporate culture. We are aware that this is a lengthy – yet key - process for preventing any further practices such as those reported in 2020.

SYCOMORE HAPPY@WORK 2020 REPORT 15 Our ENGAGMENT and VOTING 03 at Shareholders’ Meetings

MEET THE PORTFOLIO COMPANIES

ONE TO ONE with Maria Cristina Bifulco, Chief Sustainability Officer and Group Investor Relations Director, Prysmian Group

1. How important is human capital for Prysmian? The Prysmian Group is a people-driven company: all the projects we have accomplished since the creation of the company 140 years ago could not have happened without our teams. Our employees’ skills have been the key drivers enabling the company to achieve these results. Through the generations, they have passed on values, experience and loyalty down to our younger employees. This has been a determining factor in enabling the group to create value throughout its history. People First was how the company responded to the pandemic: our priorities were the health and safety of all employees and their families (Prysmian offered flu jabs to all families), the protection of local communities (Prysmian supported and provided cables for the construction of hospitals in China, Romania, Italy and other countries), and client support, to ensure we were able to maintain the highest possible service standards (94% of orders were fulfilled on time in 2020). Since 2015, our corporate strategy has been enhanced with a human capital strategy that further highlights the central role played by people within our company. This strategy underlines the importance of creating a robust pipeline of talent to ensure the sustainability of the group’s performance. It also emphasises upskilling and reskilling programmes aimed at developing technical, professional and managerial skills through the training initiatives developed by the Prysmian Academy, which has now been operational for 8 years.

Finally, Prysmian has committed to developing an organisation with a strong focus on skills, wide-ranging experience, different cultural backgrounds. More broadly speaking, all forms of Diversity & Inclusion (D&I) is a major concern for the company, which has deployed a dedicated position, a D&I Committee, and its “Side by Side” programme. Importantly, D&I targets are included in the company’s remuneration policy.

Employee engagement is also essential; our engagement indicator is a key performance indicator and an important feature of our ESG Scoreboard.

SYCOMORE HAPPY@WORK 16 2020 REPORT 2. How is sustainable development integrated within the Prysmian Group? How do investors such as Sycomore AM encourage you in your endeavours?

For the Group, building our ESG identity is a decision primarily driven by our corporate culture and consistent with our DNA as a public company. It is also aligned with our model based on creating value for our stakeholders. Our culture is about putting ESG principles into practice through a solid, ethical and transparent corporate governance model. Consequently, the role of Chief Sustainability Officer, which I am happy to fill today, was created to strengthen ESG and ensure sustainability is a priority for our executive management and board of directors.

Furthermore, through my position as Group Head of Investor Relations, I have a privileged access – as does the company – to investor feedback, which allows us to bring together internal and external interests. As a public company, we view this alignment of interests as a duty, which is also why on-going engagement is embedded within our corporate practices.

We have set up remuneration policies that align the long-term interests of our employees, executive management and shareholders, by pursuing our primary objective: creating sustainable value over time for all our stakeholders.

ESG factors have been incorporated into our long-term incentive plan, approved in 2020, and into our short- term incentive plan. This year, the weight allocated to targets that have an impact on short-term remuneration was doubled from 10-15% to 20-30%.

Most and foremost, the Prysmian group is a public company with a large shareholder base. We are a “minority company” in the sense that all of our investors are minority shareholders. Our decision to incorporate ESG factors to our DNA is a natural progression for our company, while our focus on people is in keeping with the stakeholder-driven capitalism model we have adopted.

Over the past two years, the weight of our SRI investors has grown considerably, up from around 10% to almost 40% and the trend appears to be gathering pace. This confirms that we are perceived as ESG-driven, but also guarantees that Prysmian will ensure that environmental, social and governance issues will be given priority status.

Furthermore, ESG skills have been identified as essential in the skill matrix applicable to the board of directors and were largely taken into account during the most recent board member elections.

Being a public company is both gratifying and inspiring. Our status requires effort and engagement to ensure we develop and maintain investor confidence, efforts which our company strives to pursue with a blend of humility and transparency, in keeping with our Group’s values: Trust, Dynamism and Simplicity.

Other engagement examples on the issues of responsible tech or responsible taxation, as well as other collaborative shareholder initiatives, are described in Sycomore AM’s Responsible Investor report.

The information provided is not intended as an offer or a recommendation to buy or sell financial instruments of any kind. References to specific securities and to their issuers are provided purely for information purposes and should not be construed as a recommendation to buy or sell these securities.

SYCOMORE HAPPY@WORK Our Engagement policy is available on our website. 2020 REPORT 17 Our ENGAGMENT and VOTING 03 at Shareholders’ Meetings Our votes at SHAREHOLDERS’ MEETINGS

Keen to play an active role in shareholder democracy, we systematically vote at all shareholders’ meetings held for companies owned by the portfolio. We also physically attend some of the meetings. In 2020, we voted at 99% of the shareholders’ meetings for portfolio companies (the remaining 1% is a position we had sold a few days prior to the shareholders’ meeting):

77 86% shareholders’ meetings of AGMs with at least 24% or one vote against votes against 1345 resolutions or an abstention or abstentions

18% 45% votes against/abstentions votes against/abstentions on the appointment on executive of a director compensation

As was the case in 2019, many of the resolutions we disagreed with concerned executive remuneration (45% of negative votes in 2020 versus 44% in 2019).

We opposed these resolutions for the following reasons: Insufficient transparency or requirement levels on performance criteria (type of criteria, weightings, measurement, and disclosure of target achievement rates); Long-term compensation plans with a short-term focus, based on performance periods of under 3 years; Lack of moderation (unjustified pay rises or amounts that exceed the social acceptability(6) threshold as defined by Sycomore AM).

(6) We assess the social acceptability of executive remuneration based on its disparity with employee remuneration. As laid down in our voting policy, in the absence of information on the median annual wages paid to employees, we believe that 250X the average minimum legal wage applied in SYCOMORE HAPPY@WORK the two Eurozone countries that make up most of our votes (France and Germany), weighing around €4.7 million euros, offers a meaningful threshold 18 2020 REPORT in Europe. In 2020, the highlights of our dialogue with companies on issues of executive remuneration - held ahead of shareholders’ meetings - were the following:

While the transparency of remuneration reports has tended to improve, we remain particularly attentive to the level of precision and the relevance of qualitative criteria and, in particular, of extra-financial criteria that are gradually entering the mainstream. The latter continue to lack precision and are much less demanding than financial criteria.

The issues of moderation and social acceptability are also a key feature of our shareholder dialogue with companies on their remuneration practices. The European “Shareholder Rights II” directive requires that companies disclose the ratio comparing the compensation paid to executives and to employees (median and/or average) over the past 5 years (ratio known as CEO Pay Ratio or Equity Ratio). We have recommended that companies publish this ratio in our Voting Policy for several years now, to ensure that the concepts of moderation and fair pay are better considered in executive remuneration policies. The results of this first year were mixed, as most companies published the ratio with a limited, and sometimes non-representative, scope meaning the ratio is unworkable. During our meetings, we insisted on the importance of scope but also questioned companies on the use that is made of this ratio within the company itself, and by the board of directors in particular. Indeed, companies have provided parsimonious information on the way the ratio - and its trends - have impacted decisions relating to executive compensation.

The impact of the health crisis on executive compensation was only partly visible in shareholders’ meetings held in 2020, as the remuneration that was submitted for shareholder approval concerned the previous financial year (2019). We made sure that the compensation policies put forward for 2020 were aligned with the decisions made by the company with regards to other stakeholders, in the context of the health crisis (adjustment of payroll and headcount, requests for government aid, dividend cuts or cancellations, support provided to suppliers, clients and local communities…).

The exceptional context caused by the health crisis also meant we were particularly cautious on proposed dividends. We ensured these were aligned with the financial impact of the crisis on the company and with the decisions made with respect to other stakeholders. However, companies only disclosed this information on a very partial basis ahead of the shareholders’ meetings in 2020; little information was also provided on how companies accounted for these factors when making decisions on dividend pay-outs. Consequently, these requests for information made up a large share of our shareholder dialogue and we voted against the payment of a dividend when companies offered to maintain or to increase the pay-out, despite applying for supposedly large government aids. Nevertheless, as many companies cut or cancelled their dividends for FY 2019, our rejection rate on these resolutions was not particularly high in 2020.

Our Voting Policy and our 2020 Proxy Voting Report are available on our website. The details of the votes cast can be viewed online, the day following the shareholders ‘meeting.

SYCOMORE HAPPY@WORK 2020 REPORT 19 04 Looking for IMPACT(7)

Our CONTRIBUTIONS

Beyond generating long-term financial performance, the core objective of Sycomore Happy@Work is to contribute towards improving the appreciation of human capital through its portfolio companies.

To provide a better definition of this contribution, we shall refer to the 17 Sustainable Development Goals (SDGs) adopted in 2015 by the United Nations, which are gradually becoming a worldwide benchmark for public and private sector players alike. Five of these SDGs, as shown in the table hereafter, are related to human issues to which companies can contribute as employers. The contribution to these SDGs is important in the selection process applied to the portfolio and is an integral part of Sycomore AM’s human capital strategy.

The section below identifies the SDGs portfolio companies can contribute towards and refers to two indicators reflecting the fund’s contribution to wage equity. The aim is to demonstrate the effectiveness of our stock selection process in meeting the fund’s intention, which is to generate positive impacts on labour-related issues.

SYCOMORE HAPPY@WORK (7) Through its responsible and selective process, the fund’s objective is to invest in companies that contribute to creating positive environmental 20 2020 REPORT and/or social impacts. However, it cannot claim to be an ‘impact investing’ strategy. Looking for IMPACT 04

CONTRIBUTION OF PORTFOLIO COMPANIES TO SDGS THROUGH THEIR APPROACH AS EMPLOYERS

Drawing from our quantitative and qualitative analysis, we have identified – within the five SDGs mentioned below – the priority targets which portfolio companies can contribute towards in their role as employers. To assess this contribution, we have used a double matrix on an individual company scale: on the one hand, the company’s intention to generate positive impacts on one of these SDGs, notably through its human capital policies, and on the other, the additionality that arises from its outperformance on social indicators relevant to the given target, compared to the index. If a company can contribute towards several SDGs, we selected the goal that was most relevant to our analysis. This does not exclude the fact that a company may be exposed simultaneously to several SDGs and targets, on one or more segments. Moreover, some business divisions within a portfolio company may not be clearly exposed to SDGs or display negative contributions.

0% 5% 10% 15% 20% 25% 30%

Achieve full and productive employment and decent work for all women and men, including for young people and persons with disabilities, and equal pay for 31% work of equal value.

Ensure women’s full and effective participation and equal opportunities for leadership at all levels of 26% decision-making in political, economic and public life.

Adopt policies especially fiscal, wage, and social protection policies and progressively achieve greater 23% equality.

Ensure equal access for all women and men to affordable quality technical, vocational and tertiary 16% education, including university.

Promote mental health and well-being. 4%

SYCOMORE HAPPY@WORK 2020 REPORT 21 04 Looking for IMPACT

EXAMPLES OF CONTRIBUTION BY SDG

To assess the contribution to SDG 8, and more specifically to target 8.5, we have chosen companies displaying a growth in headcount over the past 3 years that is above the EuroStoxx TR index average and offering quality working conditions – as measured by our in-house analysis.

As an example, Salesforce, the US software company, saw its headcount grow by 96% over the past 3 years. In addition, the company is recognised for the quality of the working environment it offers to its employees and for its proactive approach in including minorities.

When assessing the fund’s contribution to SDG 10 and more specifically to target 10.4, we highlight companies that have deployed equal and advantageous wage policies for employees, either by setting up employee stock ownership or by sharing the value created by the company.

Equity is one of the main tenets of Schneider Electric’s Human Resources policy. By 2020, the company’s objective is full engagement on wage equality in all the countries in which it operates. These efforts also include a review of wage gaps between executives and other workers.

Furthermore, since 1995, the group has committed to setting up international employee stock ownership reflecting its diversity. On average, over 50% of Schneider Electric’s employees are shareholders, and the company redistributed 72% of the value it created to its staff in 2020.

SYCOMORE HAPPY@WORK 22 2020 REPORT The fund’s contribution to SDG 5, and more specifically to target 5.5, is assessed based on the efforts made by the company for the promotion of female leadership, as well as the percentage of women in management positions.

American Express, the US financial company specialising in payments services, provides a good example. Women account for half of the senior management positions and make up over 52% of the company’s overall headcount. This is a direct reflection of the emphasis placed on diversity and the promotion of female talent, which are viewed as key drivers in providing a service representative of the company’s end consumers.

When assessing the fund’s contribution to SDG 4 and more specifically to target 4.3, we examine the company’s training and career development policies and the number of hours of formal training allocated to each employee.

EDP Renovaveis (EDPR) views individual development as a strategic objective and provides on-going training opportunities specific to each position to foster improvement in professional skills. The company also offers personal development programmes aligned with the company’s strategy. In 2020, EDPR provided an average of 30 hours of training per year to 96% of its teams. This substantial investment in training enables the company to promote internal skillsets; on average, 80% of new directors were appointed in-house.

The fund’s contribution to SDG 3, and more specifically to target 3.4, is assessed based on the policies set up by the company in terms of health and well-being, and the results obtained over time.

In keeping with the fund’s core philosophy - well-being - Technogym’s actions and strategy have always focused on the health of its staff. For this reason, Technogym has set up the W4W (Working 4 Wellness) programme, which offers employees a full package of activities and services, encouraging them to take regular exercise, eat healthily and adopt a positive mindset. All of Technogym’s employees are covered by the OHSAS 18001 certification and the accident frequency rate, at 5.31, remains low for the industry.

SYCOMORE HAPPY@WORK 2020 REPORT 23 04 Looking for IMPACT

ZOOM ON SHARED VALUE

For the Sycomore Happy@Work fund and in keeping with its selection criteria, we have published specific information on how value was shared in 2020. To measure this breakdown, we looked at the percentage of value distributed to each stakeholder. We pay particular attention to the share received by the employees in the companies concerned, as this is a key factor in their sustainable development performance. In 2020, 55% of the value created by portfolio companies was redistributed to employees, compared to 54% for EuroStoxx TR index constituents.

FOCUS ON STAFF Sharing the value created by the company

% % 10 9 13% 6% 8% Employees: wages and other compensation SYCOMORE % Company: cash reserves 6 EUROSTOXX TR 20% HAPPY@WORK 54% Creditors: financial expenses % Government: taxes 55 Shareholders: dividends

19 %

Coverage ratio (weight): 96% - H@W / 98% - EuroStoxx TR Coverage ratio (number) :94% - H@W / 98% - EuroStoxx TR

ZOOM ON EMPLOYEE STOCK OWNERSHIP

We also appreciate employee stock ownership as an effective way for companies to foster long-term employee engagement and enable them to share in the company’s success. We monitor this indicator as part of the investment process for Sycomore Happy@Work: it is one of the factors that helps us assess the level of equity within the firm under analysis. In 2020, 52% of portfolio companies have set up employee shareholder schemes:

52% 2,3% TOP 3

Companies Average employee Percentage of capital owned partly-owned stock ownership ratio by employees by employees

For more information on the methodology used to calculate indicators, please refer to the SYCOMORE HAPPY@WORK 24 2020 REPORT Reporting Protocol available on our website. INVENTORY OF COMPANIES INVESTED Appendix 1 IN THE SYCOMORE HAPPY@WORK FUND AS OF 31.12.2020

Company name Weight (%) Company name Weight (%)

KBC GROUP NV 1% SOCIETE POUR LINFORMATIQUE 1% UNIFIEDPOST GROUP SA 1% AIR LIQUIDE SA 2% ROCHE HOLDING 1% AG-GENUSSCHEIN LOREAL 2% SIKA AG-REG 1% BOUYGUES SA 1% BAYERISCHE MOTOREN WERKE AG 2% AXA SA 1%

SAP SE 2% MICHELIN (CGDE) 2%

HELLOFRESH SE 1% ESSILORLUXOTTICA 2%

ADIDAS AG 1% SEB SA 2%

TEAMVIEWER AG 2% SCHNEIDER ELECTRIC SE 2%

NEW WORK SE 1% CHRISTIAN DIOR SE 3%

SYMRISE AG 1% DASSAULT SYSTEMES SE 2%

ZALANDO SE 1% XILAM ANIMATION 1%

ORSTED A/S 1% NEURONES 1%

NOVO NORDISK A/S-B 1% NEXITY 0%

NETCOMPANY GROUP AS 1% LEGRAND SA 1%

AMADEUS IT GROUP SA 1% EDENRED 0%

EDP RENOVAVEIS SA 2% NANOBIOTIX 0%

MANUTAN INTERNATIONAL 1% VOLTALIA SA- REGR 1%

SOPRA STERIA GROUP 2% FOCUS HOME INTERACTIVE 1%

UBISOFT ENTERTAINMENT 1% SPIE SA - W/I 1%

BOIRON SA 0% PHARMAGEST INTERACTIVE 1%

DEVOTEAM SA 1% MAISONS DU MONDE SA 1%

SYCOMORE HAPPY@WORK 2020 REPORT 25 LIST OF COMPANIES WITHIN THE SYCOMORE Appendix 2 HAPPY@WORK FUND(8) TO WHICH WE RECOMMENDED IMPROVEMENTS IN 2020

Society Company & Suppliers People Investors Clients Environment

Adidas 2 Air Liquide 3 2 1 Alfen 5 Amadeus 1 1 AstraZeneca 1 BMW 1 Devoteam 1 DSM 3 EDP Renovaveis 1 HelloFresh 2 1 Hermès 1 Mediawan 3 Neurones 1 Nexi SpA 1 Nexity 1 Orsted 1 Pharmagest Interac- tive 1 Prysmian 2 RELX 1 Spie 2 1 Teamviewer 1 Technogym 1 Ubisoft 4 Voltalia 4 Wavestone 1

(8) some of these companies may have featured in the portfolio during 2020 but were no longer held as of 31.12.2020.

SYCOMORE HAPPY@WORK 26 2020 REPORT 14 AVENUE HOCHE - 75008 PARIS - WWW.SYCOMORE-AM.COM