Purpose & Patience
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PURPOSE & PATIENCE We aspire to be the preferred partner of entrepreneurs and families who lead growing companies by backing them with patient capital and supportive advice — Q1 2020 Edition — OUR MISSION Our goal at Sofina is to create economic value with a human approach We believe that the entrepreneurial spirit that characterises many family businesses and growth companies is a source of progress. By supporting these entrepreneurs and innovators, we intend to contribute to global growth, development and innovation. We believe entrepreneurs become successful by being competitive in a globalised market Our mission is to provide patient capital, expertise and advice to growing companies led by entrepreneurs and families. We aspire to be their preferred partner, and have a long-term horizon that few other investors can match. Our heritage and culture are what make us unique We put human relationships at the heart of what we do. All our investments are stories of shared values, friendships and ambitious projects with talented entrepreneurs and their management teams. By continuously working in this way, we aspire to become the preferred investment partner of those sharing our beliefs and vision. 2 SOFINA - PURPOSE & PATIENCE OUR MISSION 3 KEY FIGURES Highlights EUR 7.63 BN GLOBAL SHAREHOLDERS’ EQUITY REACH A FAMILY RUN 3 US EUROPE ASIA AND CONTROLLED COMPLEMENTARY Change over the last 20 INVESTMENT COMPANY INVESTMENT years (2) STYLES 8.00 7.00 6.00 5.00 FOUR FOCUS 4.00 SECTORS Long-term minority 3.00 investments 2.00 1.00 43% OF SHAREHOLDERS’ EQUITY (1) Offices in Brussels, 0 Luxembourg and Singapore Consumer and Retail 1999 2019 Sofina Private Funds – Investments in venture and growth capital funds Digital Transformation 31% OF SHAREHOLDERS’ EQUITY (1) Roots going back 26 Sofina Growth – Investments in Education investment fast-growing businesses professionals 120+ YEARS across our 20% OF SHAREHOLDERS’ EQUITY (1) 3 offices Healthcare (1) Considering the portfolio in transparency. (2) Since 1 January 2018, Sofina has adopted the status of investment entity in accordance with IFRS 10. Figures relating to the financial years 2016 and 2017 have been restated in accordance with IAS 28, §18 to ensure that the shareholders’ equity can be compared to that of following years. Accounting data are established in accordance with IFRS since 31 December 2004. Shareholders’ equity for the financial years prior to 2004 correspond to the estimated value of the assets. 4 SOFINA - PURPOSE & PATIENCE HIGHLIGHTS 5 MILESTONES 1898 - 2019 Founded more than 120 years ago as an engineering conglomerate, Sofina is now a listed investment company with equity holdings in Europe, the United States and Asia, across many sectors with a particular focus on Consumer and Retail, Digital Transformation, Our history Education and Healthcare. 2016 2014 First direct investment in the Fifth anniversary of the 2015 2017 United States through a share- 2019 ‘Platform for Education and The Singapore office 2018 More than half holding in Mérieux Shareholders’ equity Talent’, Sofina’s Philanthropic opens and Sofina Growth Exit from Flipkart of Sofina’s portfolio NutriSciences exceeding EUR 7bn project is reinforced, mainly is invested in India, China Sir David Verey CBE outside Europe The investment team and the United States becomes Chair counts 20 professionals 2011 2005 2007 2009 Strategic move towards 2012 Partnership with the growth and more 2013 First investments Investment First investment Forestier family for the international exposure Investment in Flipkart in venture and growth in bioMérieux in e-commerce delisting of Groupe capital funds in India Count Goblet d’Alviella is Petit Forestier appointed Executive Chair 1988 Yves Boël is appointed Chair 1998 and Count Goblet d’Alviella co- 1987 1978 1975 1965-70 Managing Director First investments Investment Investment in Danone Investment in Colruyt Sofina becomes an in venture and growth in SES Reinforcement of the family investment company shareholders following the capital funds acquisition of Société Générale in the United States de Belgique’s stake 1898 1956 Foundation of Sofina 1910 Yves Boël is appointed as (‘Société Financière de First1910 investment 1938 1950s Sofina’s Managing Director Transport et d’Entreprises in a Private Initial Public Offering The Luxembourg First investment by current Since 1956, Sofina Industrielles’), an engineering Equity fund in India office opens family shareholders has increased its annual conglomerate, active in the dividend per share without energy and interruption transportation sectors 6 SOFINA - PURPOSE & PATIENCE OUR HISTORY 7 STRATEGY Our strategy Our strategy could be looked at like a multi-dimensional network : by investment style, by region and by sector LONG-TERM SOFINA PRIVATE FUNDS SOFINA GROWTH – MINORITY – INVESTMENTS INVESTMENTS IN INVESTMENTS IN VENTURE AND FAST-GROWING GROWTH CAPITAL BUSINESSES FUNDS CONSUMER AND RETAIL EUROPE “Our strategy is simple. Wherever strong relationships can be created with like-minded HEALTHCARE ASIA partners as interested as we are by what makes companies grow, we will be present.” HAROLD BOËL CHIEF EXECUTIVE OFFICER DIGITAL TRANSFORMATION US EDUCATION SIGNATORY OF THE UNPRI 8 SOFINA - PURPOSE & PATIENCE OUR STRATEGY 9 OUR APPROACH What makes us unique WE UNDERSTAND FAMILY AND WE ONLY WE PROVIDE EXPERTISE IN OUR CORE SECTORS ENTREPRENEURIAL OUR TAKE DYNAMICS AND WORK THROUGH INVESTMENTS MINORITY FOR SUCCESSIVE GUIDANCE, HAVE A GLOBAL WE TAKE A OWNERSHIP GENERATIONS MARKET KNOWLEDGE FOOTPRINT LONG-TERM VIEW POSITIONS AND GLOBAL NETWORK AND INVEST OUR EQUITY ONLY WE ARE A PARTNER WE DO OUR THROUGH CYCLES, WE BACK ENTREPRENEURIAL AND BEST TO BE GROWING COMPANIES IN GOOD AND BAD WE ARE PRAGMATIC TIMES A RESPONSIBLE FROM START-UPS TO MATURE AND SOLUTION- INVESTOR. WE CARE FOR COMPANIES OUR COMMUNITES, OUR ORIENTED PEOPLE AND THE PLANET THROUGH OUR THREE INVESTMENT STYLES WE ARE AGILE AND HAVE A FAST WE OFFER DECADES DECISION- OF CUMULATED COMMON VISION EXPERIENCE AND MAKING THROUGH THE THREE INVESTMENT EXPERTISE IN A WIDE AND ALIGNMENT PROCESS STYLES, WE BRING OUR PARTNERS AN RANGE OF BOARD OF INTERESTS GUIDE ALL OUR INTERNATIONAL NETWORK OF DECISIONS SITUATIONS KEY DECISION-MAKERS 10 SOFINA - PURPOSE & PATIENCE WHAT MAKES US UNIQUE 11 TESTIMONIALS What our partners say... Given Sofina’s own focus on The Sofina team has a simple, Sofina is a fantastic partner for Drylock has been growing at an providing patient capital to collaborative approach with Graphcore. We are working incredible fast pace over the last entrepreneurs, we have been sharp industry focus and insight hard to build a large technology seven years. At a certain moment fortunate to build a long term and builds true partnership with business based in Europe with in time you come to a point and mutually beneficial local managers and global reach and Sofina’s strategy where you have to attract a partnership. entrepreneurs. is perfectly aligned. We highly good, stable partner with a long value their long term focus and term growth mindset. Sofina is BILL FORD, FENG GE, MANAGING PARTNER CEO OF GENERAL ATLANTIC OF TRUSTBRIDGE PARTNERS AND CEO OF strong support for our mission perfect for that. We had been in CAREBRIDGE HOLDINGS to build a new type of processor contact for several years and the that will let innovators in AI relations has therefore grown achieve the next breakthroughs. systematically. I was very happy Sofina is a supportive and to welcome them on board. NIGEL TOON, constructive long term partner. Sofina has been a very strong CO-FOUNDER & CEO OF GRAPHCORE Together we will further roll out They understand our business partner and has supported our ambitious growth plans well, and have contributed in us in our exponential growth. based on our technological and implementing our international Working closely with Sofina patented product portfolio. The background, culture, buy and build strategy, has further enriched our thoughtfulness and experience BART VAN MALDEREN, particularly in Latin America and understanding on how we of Sofina made them a highly CEO DRYLOCK TECHNOLOGIES in Asia. can innovate and optimize our desirable, excellent investor for us. offerings for every user of the […] They take the long-term view and OLIVIER GINON, FOUNDER AND CEO OF GL EVENTS app. We are happy that the team have the rare ability to guide us at Sofina shares our vision of strategically, but also act as a “critical revolutionizing education and is friend” operationally. We couldn’t be there to guide us. happier with Sofina, and look forward to the years ahead, as we strive to BYJU RAVEENDRAN, create a genuine world leader in FOUNDER AND CEO OF BYJU’S education. CHRIS JANSEN, GROUP CHIEF EXECUTIVE OFFICER OF COGNITA 12 SOFINA - PURPOSE & PATIENCE WHAT OUR PARTNERS SAY... 13 OUR THREE INVESTMENT STYLES (1/3) 43 % Investment size Minority stakes of shareholders’ between EUR 75MIO in privately owned and (1) listed companies equity and EUR 300MIO Mainly European-based In partnership with Patient capital companies with a global entrepreneurs and Long-term reference exposure families shareholder Why? How? For more than 60 years, Sofina has partne- Our long-term minority investment portfolio red with entrepreneurs, families and mana- consists mainly of European-based compa- Long-term gement teams to support them over their nies having a global exposure in which we long-term growth and create sustainable generally invest between EUR 75 and 300 minority value. million for a minority stake. We are active and constructive members of the company’s To our portfolio companies we bring our investments board and are involved in the development long-term view, strategic and sector expe- of strategic initiatives. Our large capital base rience, financial expertise, as well as our glo- affords us patience and the ability to sup- bal network. port growth through capital expenditures or acquisitions. Our approach is flexible and besides growth initiatives, we are also able to provide liqui- dity to existing shareholders or support other like-minded and aligned partners in sponsor-less buy outs.