Sofina : Half-year report 2023 – 05/09/2023

5 September 2023 - after 5.40pm Regulated information

HALF-YEAR REPORT 2023

	January 2024	Newsletter #13
	28 March 2024	Annual report 2023
	8 May 2024	Annual General Meeting
	July 2024	Newsletter #14

Additional information can be found on our website (www.sofinagroup.com), such as:

• Financial reports
• Description of our strategy (including ESG strategy)
• Description of our investments
• Overview of our teams
• Details on our governance

[e-mail][phone]

Dirk Delmartino [e-mail][phone]

1. Message to shareholders
2. Key indicators 1

10 Strategy

12 Key events 1

15 Investment styles

1. Selected portfolio companies in our sectors of focus
2. SDGs 1
3. Interim condensed consolidated financial statements

25 Notes to the interim condensed consolidated financial statements

1. Statutory auditor's report
2. Glossary

In accordance with Article 12, §2, 3° of the Royal Decree of 14 November 2007, Harold Boël, Chief Executive Officer, certifies in the name and on behalf of the Board of Directorsthat, to the best of his knowledge :

• The interim condensed consolidated financial statements, prepared in accordance with applicable accounting standards, give a true and fair view of the assets, liabilities, financial position and profit or loss of the Company and of the fair value of its investment subsidiaries;
• The interim Management report contains afair review of the development of the business, the results and the position of the Company and its investment subsidiaries, as well as a description of the principal risks and uncertainties they face.

1. Sections of the interim Management report. SDGs stands for United Nations Sustainable Development Goals.

SOFINA - HALF-YEAR REPORT 2023

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Dear Shareholders,

Sofina's half-year results point again to the stability in our foundation and our ability to invest across cycles. More than halfway into 2023, we continue to see turbulence in global markets, value corrections and a challenging funding environment for growing companies. This period has been a reality check on fundamentals for growth investing. Sofina's diversified portfolio, long-term focus, anchor shareholder and clear strategy allow to focus on the opportunities in this environment. Opportunities to learn, certainly, but also opportunities to seize.

Despite the volatility across sectors and geographies, our Net Asset Value (NAV), the central measure of our performance, has stabilised after last year's declines (EUR 9.215 bn at 30/06). The most important driver is the underlying performance of our portfolio companies within Sofina Direct. They keep growing, day after day. Also affecting our results are the expected lag in value adjustments in Sofina Private Funds, as well as currency headwinds compared to last year.

We have adjusted our investment activity to the current economic environment. We have been more active in supporting our existing portfolio companies, in their strategic investments and acquisitions. Biobest Group or SellerX are good examples. In pursuing new investments, where oftentimes, value expectations of market participants seem unrealistic, we remain disciplined and selective in our capital deployment for start and scale- ups. Opportunities include Too Good To Go or Mistral AI. We crystallised value through (partial) divestments in Groupe Petit Forestier and Biotech Dental.

With confidence in our investment strategy, strong long-term potential of our sectors and a quality portfolio, we feel well placed to continue what we do best: support the next generation of entrepreneurs. At heart, what we do is work with the best people, in-house and at our investment partners, to identify the best founders. They are the ones that build first-class businesses. We step in when we see a vision, robust fundamentals, promising growth and reasonable valuation.

Across our portfolio, we also look to create synergies. They reinforce each-other and strengthen the structure of the group. One such area is ESG, where we're encouraging and guiding all companies across our portfolio to consider Environmental, Social and Governance (ESG) goals as drivers for growth and impact. For us, they are principles for responsible investment and the core of building to last, in line with our guiding principles of Purpose & Patience, which are more relevant than ever in the current environment.

Dominique Lancksweert, Chairman

Harold Boël, Chief Executive Officer

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Sofina SA adopted the Investment Entity status in application of IFRS 10, §27, which provides that a company, as long as it meets the definition of an Investment Entity, does not consolidate its subsidiaries. In the present Half- year report, the interim condensed consolidated financial statements as an Investment Entity give the fair value of Sofina SA's direct investments (in portfolio investments or in investment subsidiaries). The Net Asset Value ("NAV") reported below under the Investment Entity status or in transparency (i.e. considering all portfolio investments whether held by Sofina SA directly or indirectly through its investment subsidiaries) is the same.

INTERIM FINANCIAL STATEMENTS - OVERVIEW OF THE HALF-YEAR2

	30/06/2023	31/12/2022
Total assets (in million EUR)	9,947	10,198
Net Asset Value (in million EUR)	9,215	9,313
Net Asset Value per share (in EUR) 3	276.79	279.41
	1ST SEMESTER 2023	1ST SEMESTER 2022
Net result (share of the group) (in million EUR)	14	-1,336
Net result (share of the group) per share (in EUR) 4	0.42	-39.80

As a reminder, the Annual General Meeting of 4 May 2023 decided to pay a gross dividend of EUR 3.24 per share.

FINANCIAL FIGURES IN TRANSPARENCY 5 (IN MILLION EUR)

KEY FIGURES IN TRANSPARENCY		30/06/2023		31/12/2022
Net debt / (Net cash)		-123		-233
Investment portfolio		9,061		9,062
Loan-to-value (in %)		-1.4%		-2.6%
KEY COMPREHENSIVE INCOME FIGURES IN		1ST SEMESTER 2023		1ST SEMESTER 2022
TRANSPARENCY
Dividends		23		29
Net result of the investment portfolio		12		-1,321
Total comprehensive income		14		-1,336
KEY CASH FLOW STATEMENT FIGURES IN		1ST SEMESTER 2023		1ST SEMESTER 2022
TRANSPARENCY
Investments in portfolio		-244		-744
Divestments from portfolio		240		614

1. The interim condensed consolidated financial statements are presented under the Investment Entity status, in application of which direct subsidiaries of Sofina SA are stated at fair value, including the fair value of their equity investments and other assets and liabilities (mainly intra- group debts and receivables), through profit and loss. For further explanation, see the Glossary at the end of this Half-year report.
2. Calculation based on the number of outstanding shares (33,290,572 shares at 30 June 2023 and 33,332,072 shares at 31 December 2022).
3. Calculation based on the weighted average number of outstanding shares (33,330,492 shares at 30 June 2023 and 33,510,733 shares at 30 June 2022).
4. Based on the portfolio in transparency (see point 2.1 of the Notes to the interim condensed consolidated financial statements). For a definition of the different terms used, see in the Glossary at the end of this Half-year report.

SOFINA - HALF-YEAR REPORT 2023

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