Creating Value with Purpose 2020 Highlights 01
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SUSTAINABLE VALUE CREATION REPORT 2020 Creating value with purpose 2020 Highlights 01 Contents 2020 Highlights 2020 Highlights 01 The defensible and sustainable characteristics of the portfolio companies backed by Agilitas allowed them to continue to grow in 2020 despite Welcome Letter from Ludovic de Montille 02 the challenges posed by COVID-19. They continued to make a positive Why sustainability is important to us 04 environmental and social impact in a responsible manner. Supporting human and planetary flourishing 05 Spotlight on Reconor 06 Our approach 08 Our approach in action: Exemplar Healthcare 10 Sustainable Development Goals 12 13% 7% 100% Our commitment to the Global Goals 13 Revenue growth EBITDA growth Portfolio companies have Reconor 16 across the portfolio1 across the portfolio1 governance policies in place2 Danoffice IT 20 Hydro International 24 13 2 c.8% Cibicom 28 United Nations Sustainable New United Nations Sustainable New employees across Development Goals supported Development Goals supported in 2020 the portfolio in 20203 Learning Curve Group 32 1.6m+ 96% 180 Tonnes of soil treated “Good” or “outstanding” CQC Countries to which IT equipment and remediated rating across inspected homes4 and services were delivered 100m+ 40% 92% Litres of stormwater passed Reduction in CO2 emissions Achievement rate by through Hydro’s separators from new slimline versus Flexible Learning students Cover: Copenhill waste-to-energy plant, Copenhagen (photo: Ehrhorn Hummerston). across the US every day traditional towers Reconor were part of an award-winning consortium that developed Copenhill, Copenhagen’s new urban recreation and education centre atop a new waste-to energy plant, replacing an old waste-incineration plant. The group also re-used the waste concrete from the old plant’s chimney to help create a new recycling centre. 1 Average performance for portfolio companies held for more than 12 months as of 2 Anti-bribery and corruption, whistleblower & cybersecurity policies. December 2020. Exemplar performance is from Sept19 to Sept20 – the last quarter 3 Across portfolio companies held for more than 12 months as of December 2020. date before the exit – and Cibicom is adjusted for a legacy declining contract. The number of employees for Exemplar is as of the exit date in November 2020. 4 At exit. Agilitas Sustainable Value Creation Report 2020 Agilitas Sustainable Value Creation Report 2020 Welcome 02 Welcome 03 Welcome Letter from Ludovic de Montille, Chair of Agilitas’s Responsible and Sustainable Investment Committee When Agilitas was founded in 2011, our approach. Agilitas’s Responsible challenges faced by humanity and positive change. We believe that the taken should ensure long-term exits were completed (Recover ESG and responsible investing and Sustainable Investment the planet are not issues to be private equity investment model sustainability of revenues. Nordic and Exemplar Healthcare), were placed at the very heart of the Committee, which I am proud to discussed in some long-term, far- Agilitas applies has great power to and two new investments were firm’s values, of its culture, and of chair, continues to drive our efforts off future; they must be addressed align interests and to accelerate Because sustainability is part of signed (Learning Curve Group its investment approach. Over the to remain a market leader for now because we are at risk now. change in such a way that positive Agilitas’s DNA, our firm and our and TenCate Advanced Armour), last 12 months, as the world has sustainable value creation. societal and environment impact portfolio companies have been illustrating the relevance of endured a global pandemic, our Alongside governments, can be achieved without the trade- well-placed to navigate some of Agilitas’s placing of sustainability focus on sustainability has been The global economy has been businesses have a responsibility off of lower shareholder returns. In the challenges caused by COVID-19 at the heart of its strategy. integral to the resilience of the transformed by the impact of to be part of the solution and to fact, Agilitas’s track record proves successfully. Many of the actions firm, and the companies we back. COVID-19, but so have people’s generate positive change. It is good that this model can deliver top and processes that were required On behalf of the Responsible By building Agilitas around a clear perspectives. The pandemic to see an increasing number of quartile performance. by businesses attempting to and Sustainable Investment ethical framework and pursuing provided further evidence that corporations focusing on issues understand, quantify, and manage Committee, I hope you enjoy an investment strategy that puts we all share one planet and face such as climate change and the Agilitas’s strategy has meant that the impact of the pandemic, such as reading the details of Agilitas’s sustainability and purpose at its common challenges. We all have a protection of natural resources, our portfolio companies benefited contingency planning, safeguarding approach to sustainability and centre, we have been able not only renewed appreciation of how vital and implementing sustainable from high degrees of resilience the health of employees, and the continued development of the to continue to drive human and health and human wellbeing are environmental policies. But during the disruption caused motivating workforces, were already portfolio. planetary flourishing, but also and of the importance of building there is also an urgent need for by COVID-19. Our emphasis on in place within the firm and the to continue to achieve superior economies and societies that will action in fields such as social businesses that serve fundamental portfolio. This is due to our strong performance for our investors. be resilient over the long term. We cohesion, diversity and inclusion, needs, have demonstrable governance systems, our focus rediscovered, sometimes painfully, job creation and the reduction defensibility, and enjoy on the well-being of our and our As I write this letter, we have a the importance of human relations of inequality. For businesses to multiple avenues for business portfolio’s employees, and our deeper understanding of the and values, and we now know meet these challenges requires transformation, has meant the purpose-driven investment strategy. instability and challenges that that human interaction – and the better governance, stronger portfolio has continued its strong COVID-19 brought to people and support networks we rely on – decision-making processes, and performance despite wider market This resilience of the portfolio businesses around the world, and should not be taken for granted. an approach that is predicated turbulence. There have been some companies has meant that over the at Agilitas we are convinced that on ethics and respecting all instances of short-term impact course of 2020 Agilitas has been Ludovic de Montille sustainability considerations have We also learned in the most stakeholder concerns. and, while it is still difficult to able to focus on the ordinary course Senior Advisor and Chair of never been more relevant. The brutal way possible that we need make projections in the current of business in backing, helping to Agilitas’s Responsible and impact of the COVID-19 pandemic to make changes now. COVID-19 At Agilitas we embrace the environment, I am pleased to grow and exiting companies. Over Sustainable Investment Committee has only strengthened our resolve in has laid bare the fact that the big responsibility of being an agent of say that the mitigating actions the period, two highly successful Agilitas Sustainable Value Creation Report 2020 Agilitas Sustainable Value Creation Report 2020 Why sustainability is important to us 04 Supporting human & planetary flourishing 05 Why sustainability is important to us Supporting human and planetary flourishing Investing responsibly and sustainably has been part of Agilitas’s DNA Agilitas backs high-quality businesses in defensible sectors addressing since our inception and is a fundamental part of our approach, aiding the critical needs. We believe that proactively improving businesses, where the defensibility of the portfolio and acting as a powerful value creation tool. fundamental purpose addresses human or planetary needs, not only benefits investors by driving performance, but also leads to sustainable social and environmental value creation and supports human and planetary flourishing. By focusing on investments where Agilitas places considerable are ideally placed to deliver positive societal and/or planetary emphasis on ESG and responsible profound changes by aligning FUNDAMENTAL PURPOSE ADDRESSING FUNDAMENTAL NEEDS purpose aligns with investor investment factors in all areas the interests of investors, of returns, we ensure that delivering of its operations, and views this management teams, of employees HUMAN PLANETARY a positive impact and high levels of as fundamental to the long-term and of society as a whole. FUNDAMENTAL PURPOSE NEEDS NEEDS shareholder value creation are also success of the firm, its investors fundamentally aligned. This means and its portfolio companies. The We regularly write thought-leading Environmental services that improving the performance Agilitas Investment Committee articles in industry publications - Remediate soil and improve water quality of a company benefits not only rejected five investment and participate in ESG and - Collect, sort and recycle waste material investors,