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*5 September 2023 – after 5.40pm Regulated information*

**HALF-YEAR REPORT 2023**

SOFINA – HALF-YEAR REPORT 2023 **2**

| 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 [\(www.sofinagroup.com\)](http://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

[info@sofinagroup.com](mailto:info@sofinagroup.com) +32 2 551 06 11

Dirk Delmartino

[dirk.delmartino@sofinagroup.com](mailto:dirk.delmartino@sofinagroup.com) +32 470 61 49 65

- **4** Message to shareholders
- **5** Key indicators <sup>1</sup>
- **10** Strategy
- **12** Key events <sup>1</sup>
- **15** Investment styles
- **19** Selected portfolio companies in our sectors of focus
- **20** SDGs <sup>1</sup>
- **21** Interim condensed consolidated financial statements
- **25** Notes to the interim condensed consolidated financial statements
- **57** Statutory auditor's report
- **58** 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 Directors that, 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 a fair 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.](https://www.undp.org/sustainable-development-goals) 

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 scaleups. 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.

![](_page_3_Picture_7.jpeg)

Dominique Lancksweert, *Chairman* Harold Boël, *Chief Executive Officer*

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 Halfyear 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-YEAR <sup>2</sup>

|                                                      | 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                |
|                                                      |                       |                       |
|                                                      | ST SEMESTER 2023<br>1 | ST SEMESTER 2022<br>1 |
| 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 <sup>5</sup> (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<br>TRANSPARENCY | ST SEMESTER 2023<br>1 | ST SEMESTER 2022<br>1 |
| Dividends                                           | 23                    | 29                    |
| Net result of the investment portfolio              | 12                    | -1,321                |
| Total comprehensive income                          | 14                    | -1,336                |
| KEY CASH FLOW STATEMENT FIGURES IN<br>TRANSPARENCY  | ST SEMESTER 2023<br>1 | ST SEMESTER 2022<br>1 |
| Investments in portfolio                            | -244                  | -744                  |
| Divestments from portfolio                          | 240                   | 614                   |

<sup>2.</sup> 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 intragroup debts and receivables), through profit and loss. For further explanation, see the Glossary at the end of this Half-year report.

<sup>3.</sup> 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). 4. 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).

<sup>5.</sup> 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.

| BALANCE SHEET IN TRANSPARENCY  | 30/06/2023 | 31/12/2022 |
|--------------------------------|------------|------------|
| Investment portfolio           | 9,061      | 9,062      |
| Sofina Direct                  | 4,847      | 4,760      |
| Long-term minority investments | 2,811      | 2,797      |
| Sofina Growth                  | 2,036      | 1,962      |
| Sofina Private Funds           | 4,214      | 4,302      |
| Net cash                       | 123        | 233        |
| Gross cash                     | 819        | 929        |
| Financial liabilities          | -696       | -696       |
| Other                          | 31         | 18         |
| NAV                            | 9,215      | 9,313      |

# EVOLUTION OF THE NET ASSET VALUE OVER THE LAST 20 YEARS <sup>6</sup>

![](_page_5_Figure_2.jpeg)

<sup>6.</sup> Data at 31 December, except for 2023 which provides for data at 30 June. The financial data are prepared under IFRS standards since the financial year closed at 31 December 2004. Figures relating to 2016 and 2017 have been restated in accordance with IAS 28, §18 to ensure that the Net Asset Value for 2016 and 2017 can be compared with that of the following years as set up under the Investment Entity status.

### AVERAGE ANNUAL RETURN <sup>7</sup>

![](_page_6_Figure_1.jpeg)

### EVOLUTION OF THE SHARE PRICE AND THE NAV PER SHARE OVER THE LAST 20 YEARS (IN EUR) <sup>8</sup>

![](_page_6_Figure_3.jpeg)

<sup>7.</sup> For a definition of the different terms used, see in the Glossary at the end of this Half-year report.

<sup>8.</sup> Data at 31 December, except for 2023 which provides for data at 30 June.

![](_page_7_Figure_2.jpeg)

### BY GEOGRAPHIC REGION <sup>9</sup> BETWEEN LISTED AND UNLISTED INVESTMENTS <sup>10</sup>

![](_page_7_Figure_4.jpeg)

### TOP 10 OF SOFINA DIRECT <sup>11</sup>

### TOP 10 OF SOFINA PRIVATE FUNDS <sup>13</sup>

| 1  | SC CHINA CO-INVESTMENT 2016-A (BYTEDANCE) | 1  | SEQUOIA CAPITAL (US, CHINA & INDIA) |
|----|-------------------------------------------|----|-------------------------------------|
| 2  | GROUPE PETIT FORESTIER                    | 2  | LIGHTSPEED                          |
| 3  | LERNEN MIDCO 1 (COGNITA)                  | 3  | INSIGHT PARTNERS                    |
| 4  | CAMBRIDGE ASSOCIATES                      | 4  | BATTERY VENTURES                    |
| 5  | DRYLOCK TECHNOLOGIES                      | 5  | ICONIQ CAPITAL                      |
| 6  | NUXE INTERNATIONAL                        | 6  | THOMA BRAVO                         |
| 7  | BIOMÉRIEUX                                | 7  | TA ASSOCIATES                       |
| 8  | VER SE INNOVATION                         | 8  | ANDREESSEN HOROWITZ                 |
| 9  | MÉRIEUX NUTRISCIENCES                     | 9  | SPARK CAPITAL                       |
| 10 | SALTO SYSTEMS                             | 10 | VENROCK                             |

The 10 largest investments of Sofina Direct represent 27% of the fair value of the portfolio in transparency.

The 5 largest investments of Sofina Direct represent more than 15% but less than 20% of the portfolio in transparency, whereas the 7 largest investments represent more than 20% of the portfolio in transparency.<sup>11</sup>

Out of the above-listed investments taken individually, when taking into account our combined holdings through Sofina Direct and Sofina Private Funds when applicable, ByteDance is the sole asset representing more than 5% of the fair value of the portfolio in transparency.<sup>12</sup>

The 10 largest General Partners of Sofina Private Funds represent 24% of the fair value of the portfolio in transparency.

<sup>9.</sup> Based on the portfolio in transparency considering the country of the main or historical headquarters of the investments as used in the management information (see point 2.6 of the Notes to the interim condensed consolidated financial statements).

<sup>10.</sup> Based on the portfolio in transparency.

<sup>11.</sup> Largest investments in terms of representation in the fair value of the portfolio in transparency and following the valuation principles set in point 2.5 of the Notes to the interim condensed consolidated financial statements. Listed in decreasing order of fair value at 30 June 2023. The ranking of our Sofina Direct investments does not take into consideration indirect holdings in these entities through certain partnerships of Sofina Private Funds.

<sup>12.</sup> Based on latest reports obtained from the General Partners until mid-August 2023. The valuation of such investments through Sofina Private Funds is therefore based either on a report at 30 June 2023 or on a report at 31 March 2023.

<sup>13.</sup> Largest General Partners in terms of estimated representation of their funds in the fair value of Sofina's portfolio in transparency. Listed in decreasing order of fair value at 30 June 2023.

![](_page_8_Figure_1.jpeg)

14. At 30 June 2023.

![](_page_9_Picture_0.jpeg)

![](_page_10_Figure_0.jpeg)

![](_page_10_Figure_2.jpeg)

![](_page_11_Picture_4.jpeg)

![](_page_11_Picture_5.jpeg)

Sofina invested in **Too Good To Go**, a pioneering B Corp certified company dedicated to reducing food waste. It operates a leading B2C marketplace for discounted surplus food that connects retailers looking to sell surplus food that would otherwise go to waste, with consumers looking for a good deal in return. The investment was made through a syndication vehicle managed by Blisce.

Our partnership aims to empower communities and drive sustainable change within the global food industry.

![](_page_11_Picture_8.jpeg)

# CONSUMER AND RETAIL

![](_page_11_Picture_11.jpeg)

![](_page_11_Picture_12.jpeg)

**Dott** is a micromobility company operating a fleet of shared e-scooters and e-bikes. Sofina subscribed to the Series C round which first tranche closed in September 2022 and second tranche closed in March 2023.

![](_page_11_Picture_14.jpeg)

CONSUMER AND RETAIL DIGITAL TRANSFORMATION

# **MISTRAL AI**

**Mistral AI** is a generative AI company based in France with the ambition of creating the leading LLM\* open-source alternative to OpenAI's ChatGPT. Sofina invested alongside Lightspeed in this company co-founded by three French researchers from Meta's LLaMA and Deepmind's RETRO labs.

\* Large Language Models (LLMs) are foundational machine learning models that use deep learning algorithms to process and understand natural language.

![](_page_11_Picture_19.jpeg)

![](_page_11_Picture_20.jpeg)

Sofina increased its existing holding in **Biobest**, a global leader in biological crop protection and natural pollination in which Sofina initially invested in 2022.

![](_page_11_Picture_22.jpeg)

<sup>15.</sup> Overview of the main events of 2023 until the date of this Half-year report, i.e. 5 September 2023.

<sup>16.</sup> Sofina Direct combines Long-term minority investments and Sofina Growth, the two investment styles in which the Sofina group directly owns shares in portfolio companies or is involved through a syndication vehicle.

![](_page_12_Picture_0.jpeg)

**SellerX** is building a portfolio of next generation brands that touch people's everyday lives.

In the context of SellerX's merger with Elevate, Sofina purchased additional shares and lead the Series C round which closed in June 2023.

![](_page_12_Picture_3.jpeg)

**Vinted** is Europe's largest online marketplace dedicated to second-hand fashion.

Sofina further increased its stake through a secondary purchase.

# HEALTHCARE AND LIFE SCIENCES EDUCATION

![](_page_12_Picture_7.jpeg)

![](_page_12_Picture_8.jpeg)

**Birdie** is a B Corp certified company established in the United Kingdom that operates an all-in-one homecare software which connects health practitioners, care communities and patients to ensure the best care outcomes.

![](_page_12_Picture_10.jpeg)

![](_page_12_Picture_12.jpeg)

**K12 Techno Services** is an educational services platform which provides a suite of services including academic support, administration, and technology solutions.

Sofina subscribed to the Series E round whose first tranche closed in November 2022 and second tranche closed in July 2023.

![](_page_12_Picture_15.jpeg)

CONSUMER AND RETAIL

![](_page_12_Picture_18.jpeg)

**Lenskart** is a leading eyewear manufacturer and retailer in India, in which Sofina saw part of its indirect stake divested.

### HEALTHCARE AND LIFE SCIENCES

![](_page_12_Picture_21.jpeg)

As previously announced, Sofina signed an agreement with Henry Schein, the world's largest provider of healthcare solutions to office-based dental and medical practitioners, for the sale of its entire stake in **Biotech Dental**, a European dentistry leader. The deal closed in April 2023.

![](_page_12_Picture_23.jpeg)

**Groupe Petit Forestier** - Sofina disposed a portion of its stake to the Forestier family and retains 34% in the company.

![](_page_12_Picture_25.jpeg)

A small part of Sofina's indirect stake in **Aohua**, one of the leading Chinese endoscopy equipment and consumables manufacturers, has been divested.

![](_page_12_Picture_27.jpeg)

The start of 2023 saw a slowdown in sums committed to venture capital and growth funds, with just over USD 90 billion raised over the first 6 months, compared to a total of almost USD 300 billion in 2022. Myriad factors combined to buffet the markets, including the protracted war in Ukraine, other geopolitical uncertainties, concerns about the global banking system, stubbornly high inflation, and still-increasing interest rates. While valuations in the technology space are under pressure, innovation continues to be robust driven by generative AI. Sofina's portfolio funds managers are actively looking at the latest developments in generative AI, assessing the risks and opportunities for their existing portfolio companies, and looking at promising new entrants.

Sofina's Private Funds activity remains disciplined in its commitments approach, maintaining a stable pace across vintages and supporting its portfolio funds managers in navigating a difficult fundraising environment.

The difference between the NAV of the Newsletter #12 including the preliminary financial figures of the first semester and the NAV of this Half-year report amounts to EUR 75 million. The decrease is explained by the valuation adjustments of Sofina Private Funds taking into account the reports as of 30 June 2023, received from the General Partners since the publication of the Newsletter #12 on 24 July 2023 and some valuation adjustments of the Sofina Direct investments. More than 70% of the Sofina Private Funds fair value is based either on reports at 30 June 2023 or valuations based on market prices or transaction prices.

On 15 February 2023, Euronext Brussels launched the BEL ESG index with the aim to identify and track the companies within the BEL 20 and the BEL Mid indices that have demonstrated the best ESG practices. According to Euronext, the BEL ESG index is "designed to facilitate the adoption of mainstream ESG investment solutions by investors". Sofina is member of the BEL ESG Index since its inception.

![](_page_13_Picture_8.jpeg)

The Investment team continued to engage with the management teams of our portfolio companies on their ESG and sustainability priorities. Setting up **sustainability roadmaps** will allow Sofina to closely monitor the ESG performance of its portfolio companies, based on agreed milestones. Our **ESG frameworks** were also applied to inform our investment decisions in Sofina Direct and Sofina Private Funds around ESG.

As indicated, Sofina has the ambition to be a United Nations [Sustainable Development Goals](https://www.undp.org/sustainable-development-goals) (SDGs) contributor. You can find a mapping of our investments towards these goals on page 20.

Our teams follow a programme of **internal ESG trainings** to ensure they have the right tools to include ESG considerations in their decision-making and work with our portfolio companies on their ESG journey.

![](_page_14_Figure_3.jpeg)

# BETWEEN LISTED AND UNLISTED INVESTMENTS

![](_page_14_Figure_5.jpeg)

<sup>17.</sup> Based on the fair value of the Sofina group's investments at 30 June 2023 (portfolio in transparency). At closing date, Sofina had 79 portfolio companies in its portfolio.

![](_page_15_Figure_1.jpeg)

<sup>18.</sup> Based on the fair value of the Sofina group's investments at 30 June 2023 (portfolio in transparency). At closing date, Sofina had 25 companies in its portfolio.

<sup>19.</sup> Based on the fair value of the Sofina group's investments at 30 June 2023 (portfolio in transparency). At closing date, Sofina had 54 companies in its portfolio.

![](_page_16_Figure_2.jpeg)

# BETWEEN LISTED AND UNLISTED INVESTMENTS <sup>21</sup>

![](_page_16_Figure_4.jpeg)

<sup>20</sup> Based on the fair value of the Sofina group's investments at 30 June 2023 (portfolio in transparency). At closing date, Sofina had 496 funds in its portfolio.

<sup>21.</sup> Estimated based on available information provided by the General Partners.

![](_page_17_Figure_1.jpeg)

![](_page_17_Picture_2.jpeg)

22. Based on the fair value of the Sofina group's investments as at 30 June 2023 (portfolio in transparency).

Sector knowledge is paramount. We have teams focusing on our four preferred sectors with the belief, in line with our mission, that these sectors are well positioned to contribute to global growth, development and innovation.

We have gathered significant industry expertise and investment experience in those areas through our investment styles. This knowledge, alongside our partners' industry experience, enables us to support the growth of our portfolio companies.

![](_page_18_Figure_3.jpeg)

Sofina has the ambition to become a United Nations [Sustainable Development Goals](https://www.undp.org/sustainable-development-goals) (SDGs) contributor, as it believes that positive impact on communities and environments where businesses operate will be a growing driver of sustainable value creation.

A number of recent investments have been made in companies with products and services that directly positively contribute to the **SDGs**, as highlighted here below. Some of them, such as Too Good to Go and Birdie, are additionally **B Corp certified** companies. We are also pleased to count Felix Capital, who also became B Corp certified, among our core European GPs.

![](_page_19_Figure_3.jpeg)

Updated SDG mapping of our portfolio at 30 June 2023:

Sofina meets the conditions for Investment Entity status under IFRS 10, §27, which requires that investment subsidiaries should not be consolidated and that direct subsidiaries of a company that qualifies as an Investment Entity should be recorded at fair value in the consolidated financial statements, including the fair value of their equity investments and their other assets and liabilities.

# CONSOLIDATED BALANCE SHEET

| ASSETS                                      |       |            | in thousand EUR |
|---------------------------------------------|-------|------------|-----------------|
|                                             | NOTES | 30/06/2023 | 31/12/2022      |
| Non-current assets                          |       | 8,511,608  | 8,549,094       |
| (In)tangible assets                         |       | 8,931      | 9,111           |
| Investment portfolio                        | 3.1   | 8,502,677  | 8,539,983       |
| Investments                                 |       | 8,501,263  | 8,538,603       |
| Receivables                                 |       | 1,414      | 1,380           |
| Deferred tax assets                         |       | 0          | 0               |
| Current assets                              |       | 1,435,228  | 1,648,741       |
| Deposits and other current financial assets | 3.3   | 597,249    | 436,686         |
| Receivables from subsidiaries               | 3.8   | 740,896    | 823,998         |
| Other current receivables                   |       | 97         | 97              |
| Taxes                                       |       | 1,338      | 2,474           |
| Cash and cash equivalents                   | 3.4   | 95,648     | 385,486         |
| TOTAL ASSETS                                |       | 9,946,836  | 10,197,835      |

| LIABILITIES                       |       |            | in thousand EUR |
|-----------------------------------|-------|------------|-----------------|
|                                   | NOTES | 30/06/2023 | 31/12/2022      |
| Shareholders' equity              |       | 9,214,575  | 9,313,329       |
| Share capital                     | 3.5   | 79,735     | 79,735          |
| Share premium                     |       | 4,420      | 4,420           |
| Reserves                          |       | 9,130,420  | 9,229,174       |
| Non-current liabilities           |       | 698,403    | 697,825         |
| Provisions for pensions           |       | 2,235      | 2,235           |
| Other provisions                  |       | 274        | 83              |
| Non-current financial liabilities | 3.6   | 695,894    | 695,507         |
| Deferred tax liabilities          |       | 0          | 0               |
| Current liabilities               |       | 33,858     | 186,681         |
| Current financial liabilities     | 3.7   | 5,370      | 2,010           |
| Payables to subsidiaries          | 3.8   | 25,026     | 175,634         |
| Trade and other current payables  | 3.7   | 3,462      | 9,037           |
| Taxes                             |       | 0          | 0               |
| TOTAL LIABILITIES                 |       | 9,946,836  | 10,197,835      |

# CONSOLIDATED INCOME STATEMENT

|                                        |            | in thousand EUR       |                       |  |
|----------------------------------------|------------|-----------------------|-----------------------|--|
|                                        | NOTES      | 1<br>ST SEMESTER 2023 | 1<br>ST SEMESTER 2022 |  |
| Dividend income                        |            | 11,736                | 9,147                 |  |
| Interest income                        | 3.9        | 14,302                | 2,831                 |  |
| Interest expenses                      | 3.9        | -3,858                | -4,088                |  |
| Net result of the investment portfolio | 3.1 & 3.10 | -379                  | -1,315,091            |  |
| Investments                            |            | -379                  | -1,315,091            |  |
| Gains                                  |            | 218,968               | 72,805                |  |
| Losses                                 |            | -219,347              | -1,387,896            |  |
| Receivables                            |            | 0                     | 0                     |  |
| Gains                                  |            | 0                     | 0                     |  |
| Losses                                 |            | 0                     | 0                     |  |
| Other financial results                | 3.11       | 9,336                 | -8,063                |  |
| Other income                           |            | 936                   | 4,054                 |  |
| Other expenses                         | 3.12       | -17,988               | -25,107               |  |
|                                        |            |                       |                       |  |
| RESULT BEFORE TAX                      |            | 14,085                | -1,336,317            |  |
| Taxes                                  |            | -4                    | 269                   |  |
|                                        |            |                       |                       |  |
| RESULT OF THE PERIOD                   |            | 14,081                | -1,336,048            |  |
|                                        |            |                       |                       |  |
| SHARE OF THE GROUP IN THE RESULT       |            | 14,081                | -1,336,048            |  |
| Net result per share (EUR) 1           |            | 0.4225                | -39.8039              |  |
| Diluted net result per share (EUR) 2   |            | 0.4200                | -39.5679              |  |

# CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

|                                                                                                                        |       |                       | in thousand EUR       |
|------------------------------------------------------------------------------------------------------------------------|-------|-----------------------|-----------------------|
|                                                                                                                        | NOTES | 1<br>ST SEMESTER 2023 | 1<br>ST SEMESTER 2022 |
| RESULT OF THE PERIOD                                                                                                   |       | 14,081                | -1,336,048            |
| OTHER COMPREHENSIVE INCOME3                                                                                            |       |                       |                       |
| Other items                                                                                                            |       | 0                     | 0                     |
| Income and expenses recognised directly in<br>shareholders' equity and subsequently reclassified in<br>net revenue     |       | 0                     | 0                     |
| Income and expenses recognised directly in<br>shareholders' equity and subsequently not reclassified<br>to net revenue |       | 0                     | 0                     |
| TOTAL OTHER COMPREHENSIVE INCOME3                                                                                      |       | 0                     | 0                     |
| TOTAL RECOGNISED INCOME AND EXPENSES<br>(COMPREHENSIVE INCOME)                                                         |       | 14,081                | -1,336,048            |
| Attributable to non-controlling interests                                                                              |       | 0                     | 0                     |
| Attributable to shareholders of the parent company                                                                     |       | 14,081                | -1,336,048            |

<sup>1.</sup> Calculation based on the weighted average number of outstanding shares (33,330,492 shares as at 30 June 2023 and 33,565,782 shares as at 30 June 2022, i.e. a net change in treasury shares of -235,290).

<sup>2.</sup> Calculation based on the weighted average number of outstanding shares diluted per share (33,524,042 shares as at 30 June 2023 and 33,765,932 shares as at 30 June 2022, i.e. a net change in treasury shares of -241,890).

<sup>3.</sup> These items are presented net of taxes.

# CHANGES IN THE CONSOLIDATED SHAREHOLDERS' EQUITY

|                                            |       |         |                  |            |                    |                |                                 | in thousand EUR |
|--------------------------------------------|-------|---------|------------------|------------|--------------------|----------------|---------------------------------|-----------------|
|                                            | NOTES | CAPITAL | SHARE<br>PREMIUM | RESERVES   | TREASURY<br>SHARES | GROUP<br>SHARE | NON<br>CONTROLLING<br>INTERESTS | TOTAL           |
| BALANCE AS AT<br>31/12/2021                |       | 79,735  | 4,420            | 11,489,863 | -219,677           | 11,354,341     | 0                               | 11,354,341      |
| Result of the<br>period                    |       |         |                  | -1,336,048 |                    | -1,336,048     |                                 | -1,336,048      |
| Other<br>comprehensive<br>income           |       |         |                  | 0          |                    | 0              |                                 | 0               |
| Dividends                                  |       |         |                  | -107,154   |                    | -107,154       |                                 | -107,154        |
| Changes in<br>treasury shares              |       |         |                  | 2,120      | -41,138            | -39,018        |                                 | -39,018         |
| Other                                      |       |         |                  | 2,835      |                    | 2,835          |                                 | 2,835           |
| Changes in non<br>controlling<br>interests |       |         |                  |            |                    | 0              |                                 | 0               |
| BALANCE AS AT<br>30/06/2022                |       | 79,735  | 4,420            | 10,051,616 | -260,815           | 9,874,956      | 0                               | 9,874,956       |
|                                            |       |         |                  |            |                    |                |                                 |                 |
| BALANCE AS AT<br>31/12/2022                |       | 79,735  | 4,420            | 9,521,570  | -292,396           | 9,313,329      | 0                               | 9,313,329       |
| Result of the<br>period                    |       |         |                  | 14,081     |                    | 14,081         |                                 | 14,081          |
| Other<br>comprehensive<br>income           |       |         |                  | 0          |                    | 0              |                                 | 0               |
| Dividends                                  | 3.5   |         |                  | -108,023   |                    | -108,023       |                                 | -108,023        |
| Changes in<br>treasury shares              |       |         |                  | -222       | -8,635             | -8,857         |                                 | -8,857          |
| Other                                      |       |         |                  | 4,045      |                    | 4,045          |                                 | 4,045           |
| Changes in non<br>controlling<br>interests |       |         |                  |            |                    | 0              |                                 | 0               |
| BALANCE AS AT<br>30/06/2023                |       | 79,735  | 4,420            | 9,431,451  | -301,031           | 9,214,575      | 0                               | 9,214,575       |

|                                                                              |            | in thousand EUR       |                       |
|------------------------------------------------------------------------------|------------|-----------------------|-----------------------|
|                                                                              | NOTES      | 1<br>ST SEMESTER 2023 | 1<br>ST SEMESTER 2022 |
| CASH AND CASH EQUIVALENTS AT THE BEGINNING OF<br>THE PERIOD                  | 3.4        | 385,486               | 140,742               |
| Dividend income                                                              |            | 16,746                | 6,287                 |
| Interest income                                                              |            | 14,269                | 2,830                 |
| Interest expenses                                                            |            | -586                  | -161                  |
| Acquisitions of current financial assets (deposits of more than<br>3 months) |            | 0                     | -35,000               |
| Disposals of current financial assets (deposits of more than 3<br>months)    |            | 0                     | 0                     |
| Acquisitions of current financial assets (treasury investment<br>portfolio)  |            | -145,800              | -37,000               |
| Disposals of current financial assets (treasury investment<br>portfolio)     |            | 0                     | 309,177               |
| Acquisitions of other current financial assets                               |            | 0                     | -639                  |
| Disposals of other current financial assets                                  |            | 150                   | 0                     |
| Other current receipts                                                       |            | 6,690                 | 3,523                 |
| Administrative expenses and miscellaneous                                    |            | -17,927               | -42,345               |
| Net taxes                                                                    |            | -7                    | -4                    |
| Cash flow from operating activities                                          |            | -126,465              | 206,668               |
| Acquisitions of (in)tangible assets                                          |            | -119                  | -106                  |
| Disposals of (in)tangible assets                                             |            | 0                     | 0                     |
| Disposals of consolidated companies                                          |            | 0                     | 0                     |
| Investments in portfolio                                                     | 3.1        | -59,787               | -46,621               |
| Divestments from portfolio                                                   | 3.1 & 3.10 | 96,749                | 20                    |
| Movements in other non-current assets                                        |            | 0                     | 0                     |
| Cash flow from investing activities                                          |            | 36,843                | -46,707               |
| Acquisitions of treasury shares                                              |            | -9,997                | -44,231               |
| Disposals of treasury shares                                                 |            | 1,140                 | 2,595                 |
| Dividends paid                                                               | 3.5        | -108,027              | -104,881              |
| Movements in receivables from subsidiaries                                   |            | 66,843                | -81,921               |
| Movements in payables to subsidiaries                                        |            | -150,175              | 0                     |
| Receipts from financial liabilities                                          |            | 0                     | 100,000               |
| Repayments of financial liabilities                                          |            | 0                     | -100,000              |
| Cash flow from financing activities                                          |            | -200,216              | -228,438              |
| CASH AND CASH EQUIVALENTS AT THE END OF THE<br>PERIOD                        | 3.4        | 95,648                | 72,265                |

For Sofina, the primary revenue generator is the evolution of the NAV (a non-monetary item that appears in the income statement but not in the consolidated cash flow statement). In this context, cash flows related to portfolio investments and divestments, which are not revenue generators, are considered to be part of investing activities and not of operating activities.

It should be remembered that the management cash flow statement (in transparency) is available in point 2.1 of the Notes to the interim condensed consolidated financial statements.

The notes to the interim condensed consolidated financial statements are grouped in three sections, providing the following information:

- 1. **Statement of compliance and accounting policies**  includes the statement of compliance, accounting policies and significant changes.
- 2. **Key management information and segment reporting** includes segment information and reconciliations to the financial statements as well as information on the portfolio in transparency (as if the group were applying the consolidation principles).
- 3. **Notes to the financial statements as an Investment Entity**  includes the notes to the interim condensed consolidated financial statements of Sofina as an Investment Entity.

Sofina SA is a public limited liability company incorporated under Belgian law, with its registered office at rue de l'Industrie, 31, 1040 Brussels.

The interim condensed consolidated financial statements of the Sofina group as at 30 June 2023 have been approved by the Board of Directors held on 5 September 2023, have been prepared in accordance with IFRS (International Financial Reporting Standards) as adopted in the European Union and have been prepared in accordance with IAS 34 - Interim Financial Reporting.

These interim condensed consolidated financial statements do not include all the information required for complete financial statements. Accordingly, they should be read in conjunction with the information provided in the Annual report containing the consolidated financial statements as at 31 December 2022.

The standards, amendments and interpretations published but not yet effective in 2023 have not been adopted in advance by the Sofina group (see point 3.17 below).

The valuation and consolidation principles, methods and techniques used in these interim condensed consolidated financial statements are identical to those applied by the Sofina group when preparing the consolidated financial statements for the year ended 31 December 2022.

A summary of the main accounting policies is presented in point 3.17 below.

IFRS 8 on operating segments requires Sofina to present segments on the basis of reports presented to management for the purpose of making decisions about resources to be allocated to each segment and assessing the performance of each segment.

Sofina SA is the parent company of the Sofina group. The investments in portfolio managed by the group are held by the parent company, Sofina SA, either by owning shares directly in portfolio investments or by investing in them through its investment subsidiaries. When preparing the financial statements as an Investment Entity, the fair value of the shares held directly at the parent company level (in portfolio investments or in investment subsidiaries) is recorded as an asset in the balance sheet. By contrast, segment management information (based on internal reporting) is prepared on the entire portfolio in transparency (i.e. on all portfolio investments wherever they are held in the Sofina group legal structure), and thus on the basis of the total fair value of each portfolio investment ultimately held in companies or in funds. The presentation of dividends or cash flows follows the same logic.

To reconcile the items related to the group's total portfolio with the financial statements, the information is presented as follows:

- **Total** which represents the total of the investment portfolio (the total of the three investment styles covered by Sofina Direct and Sofina Private Funds) on the one hand and the items not allocated to the investment styles (i.e. expenses and income or other balance sheet items not monitored in a segmented way per investment style), whether they are recognised at the parent company level or in the Sofina SA subsidiaries, on the other;
- **Items for reconciliation with the financial statements** which represent the adjustments necessary to reconcile the details per investment style (as used internally in the day-to-day management of the Sofina group) with the consolidated financial statements under Investment Entity status. These consist of reclassifications between both views of the portfolio (in transparency or not), as explained in point 2.3 below;
- **Financial statements** which represent the consolidated financial statements under the Investment Entity status.

The presentation of the comprehensive income and the balance sheet is aggregated as it appears in the reports to management. Definitions of terms can be found in the Glossary at the end of this Half-year financial report.

### **Situation as at 30 June 2023**

|                                             |                  |                            | in thousand EUR |                      |                         |  |  |
|---------------------------------------------|------------------|----------------------------|-----------------|----------------------|-------------------------|--|--|
| COMPREHENSIVE INCOME<br>(1ST SEMESTER 2023) | SOFINA<br>DIRECT | SOFINA<br>PRIVATE<br>FUNDS | TOTAL           | RECONCILING<br>ITEMS | FINANCIAL<br>STATEMENTS |  |  |
| Dividends                                   | 22,553           | 146                        | 22,699          | -10,963              | 11,736                  |  |  |
| Long-term minority investments              | 22,553           |                            |                 |                      |                         |  |  |
| Sofina Growth                               | 0                |                            |                 |                      |                         |  |  |
| Net result of the investment portfolio      | 127,582          | -115,910                   | 11,672          | -12,051              | -379                    |  |  |
| Long-term minority investments              | 50,805           |                            |                 |                      |                         |  |  |
| Sofina Growth                               | 76,777           |                            |                 |                      |                         |  |  |
| Management expenses                         |                  |                            | -25,322         | 7,334                | -17,988                 |  |  |
| Other 4                                     |                  |                            | 5,032           | 15,680               | 20,712                  |  |  |
| Total comprehensive income                  |                  |                            | 14,081          | 0                    | 14,081                  |  |  |

### **BALANCE SHEET (30/06/2023) SOFINA DIRECT SOFINA PRIVATE FUNDS TOTAL** *RECONCILING ITEMS* **FINANCIAL STATEMENTS** Investment portfolio 4,847,242 4,213,924 9,061,166 -558,489 8,502,677 *Long-term minority investments 2,811,356 Sofina Growth 2,035,886* Net cash 122,704 -135,820 -13,116 *Gross cash* 818,598 -135,820 682,778 *Financial liabilities* -695,894 0 -695,894 (In)tangible fixed assets 10,491 -1,560 8,931 Other assets and liabilities <sup>4</sup> 20,214 695,869 716,083 **NAV 9,214,575** 0 **9,214,575**

The management cash flow statement below provides cash flow information in transparency for all group subsidiaries.

|                                                       |                  |                            |                        |                         | in thousand EUR   |
|-------------------------------------------------------|------------------|----------------------------|------------------------|-------------------------|-------------------|
| MANAGEMENT CASH FLOW STATEMENT<br>(1ST SEMESTER 2023) | SOFINA<br>DIRECT | SOFINA<br>PRIVATE<br>FUNDS | TOTAL<br>GROSS<br>CASH | FINANCIAL<br>LIABILTIES | TOTAL<br>NET CASH |
| Net cash at the beginning of the period               |                  |                            | 928,558                | -695,507                | 233,051           |
| Dividends 5                                           | 15,956           | 146                        | 16,102                 |                         | 16,102            |
| Management expenses 6                                 |                  |                            | -25,761                |                         | -25,761           |
| Investments in portfolio                              | -84,764          | -158,981                   | -243,745               |                         | -243,745          |
| Divestments from portfolio                            | 123,754          | 116,119                    | 239,873                |                         | 239,873           |
| Dividends paid                                        |                  |                            | -108,027               |                         | -108,027          |
| Other items                                           |                  |                            | 11,598                 | -388                    | 11,210            |
| Repayment of financial liabilities                    |                  |                            | 0                      | 0                       | 0                 |
| Net cash at the end of the period                     |                  |                            | 818,598                | -695,895                | 122,703           |

in thousand EUR

<sup>4.</sup> This includes the deferred tax liabilities (of EUR 2.17 million) for the temporary tax differences recognised by some investment subsidiaries between the carrying amount and the tax base of portfolio investments impacting their fair value recognised in Sofina SA's investment portfolio. Moreover, there are accumulated profits within Sofina Private Funds which could become taxable at a 25% tax rate in the theoretical scenario where the relevant investment subsidiaries holding such portfolio were to be liquidated and profit repatriated to Sofina SA, which will however not materialise in the current going-concern context. Depending on the theoretical scenarios considered (such as a sale or a liquidation of Sofina Private Funds), 0% to 60% of the Net Asset Value of the investment subsidiaries holding Sofina Private Funds could become taxable at 25%. However, this hypothetical tax has not been recognised because the trigger events are under the control of Sofina SA, and moreover not probable. Furthermore, the investment subsidiaries of Sofina SA do not recognise deferred tax assets for tax losses carried forward because their recovery is not considered probable. Here also, since there is no deferred tax asset recognised by the investment subsidiaries in this respect, their fair value is not impacted.

<sup>5.</sup> Difference compared with the dividends presented in the comprehensive income is mainly due to cut-offs between declaration and payment periods or to withholding taxes.

<sup>6.</sup> Difference compared with the management expenses presented in the comprehensive income is mainly due to the payment in the current period of accruals relating to bonus granted on the previous financial year.

| in thousand EUR                  |                  |               |                    |                               |               |         |         |                        |                 |
|----------------------------------|------------------|---------------|--------------------|-------------------------------|---------------|---------|---------|------------------------|-----------------|
| INVESTMENT<br>PORTFOLIO          | FAIR VALUE       | INVESTMENTS 7 |                    | DIVESTMENTS<br>AND REVENUES 7 |               | MARKET  | FX      | FAIR                   | VALUE           |
| BRIDGE<br>(1ST SEMESTER<br>2023) | AT<br>31/12/2022 | Cash          | Non<br>-<br>cash 9 | Cash                          | Non<br>cash 9 | IMPACT  | IMPACT  | VALUE AT<br>30/06/2023 | CREATION<br>% 8 |
| Sofina Direct                    | 4.759.857        | 83.489        | 67                 | -137.815                      | -8.559        | 172.934 | -22.731 | 4.847.242              | 3%              |
| Sofina Private Funds             | 4.302.404        | 154.350       | 425                | -113.497                      | -13.848       | -43.750 | -72.160 | 4.213.924              | -3%             |
| Total Investment<br>portfolio    | 9.062.261        | 237.839       | 492                | -251.312                      | -22.407       | 129.184 | -94.891 | 9.061.166              | 0%              |

### **Situation as at 30 June 2022**

in thousand EUR **COMPREHENSIVE INCOME (1ST SEMESTER 2022) SOFINA DIRECT SOFINA PRIVATE FUNDS TOTAL** *RECONCILING ITEMS* **FINANCIAL STATEMENTS** Dividends 23,014 6,069 29,083 *-19,936* 9,147 *Long-term minority investments 22,892 Sofina Growth 122* Net result of the investment portfolio -1,126,304 -194,345 -1,320,649 *5,558* -1,315,091 *Long-term minority investments -730,980 Sofina Growth -395,324* Management expenses -38,159 *13,052* -25,107 Other -6,323 *1,326* -4,997 **Total comprehensive income -1,336,048** *0* **-1,336,048**

|                                |                  |                            | in thousand EUR |                      |                         |  |  |  |
|--------------------------------|------------------|----------------------------|-----------------|----------------------|-------------------------|--|--|--|
| BALANCE SHEET (30/06/2022)     | SOFINA<br>DIRECT | SOFINA<br>PRIVATE<br>FUNDS | TOTAL           | RECONCILING<br>ITEMS | FINANCIAL<br>STATEMENTS |  |  |  |
| Investment portfolio           | 4,788,192        | 5,059,569                  | 9,847,761       | -730,378             | 9,117,383               |  |  |  |
| Long-term minority investments | 2,898,989        |                            |                 |                      |                         |  |  |  |
| Sofina Growth                  | 1,889,203        |                            |                 |                      |                         |  |  |  |
| Net cash                       |                  |                            | 124             | -122,058             | -121,934                |  |  |  |
| Gross cash                     |                  |                            | 695,237         | -122,058             | 573,179                 |  |  |  |
| Financial liabilities          |                  |                            | -695,113        | 0                    | -695,113                |  |  |  |
| (In)tangible fixed assets      |                  |                            | 10,258          | -867                 | 9,391                   |  |  |  |
| Other assets and liabilities   |                  |                            | 16,813          | 853,303              | 870,116                 |  |  |  |
| NAV                            |                  |                            | 9,874,956       | 0                    | 9,874,956               |  |  |  |

|                                                          |                  |                            |                        |                          | in thousand EUR   |
|----------------------------------------------------------|------------------|----------------------------|------------------------|--------------------------|-------------------|
| MANAGEMENT CASH FLOW<br>STATEMENT<br>(1ST SEMESTER 2022) | SOFINA<br>DIRECT | SOFINA<br>PRIVATE<br>FUNDS | TOTAL<br>GROSS<br>CASH | FINANCIAL<br>LIABILITIES | TOTAL<br>NET CASH |
| Net cash at the beginning of the period                  |                  |                            | 1,048,549              | -729,512                 | 319,082           |
| Dividends 10                                             | 15,880           | 6,069                      | 21,949                 |                          | 21,949            |
| Management expenses 11                                   |                  |                            | -58,843                |                          | -58,843           |
| Investments in portfolio                                 | -467,873         | -275,889                   | -743,762               |                          | -743,762          |
| Divestments from portfolio                               | 348,513          | 265,883                    | 614,396                |                          | 614,396           |
| Dividends paid                                           |                  |                            | -104,881               |                          | -104,881          |
| Other items                                              |                  |                            | -47,216                | -601                     | -47,817           |
| Repayment of financial liabilities                       |                  |                            | -35,000                | 35,000                   | 0                 |
| Net cash at the end of the period                        |                  |                            | 695,237                | -695,113                 | 124               |

7. Net of intragroup transfers.

<sup>8.</sup> Fair value at the end of the period + Divestments and revenues of the period divided by Fair value at the beginning of the period + Investments of the period.

<sup>9.</sup> Mainly composed of escrows and cut-offs (i.e. differences when the realisation of a transaction and its cash impact occur in two different periods). 10. Difference compared with the dividends presented in the comprehensive income is mainly due to cut-offs between declaration and payment periods or to withholding taxes.

<sup>11.</sup> Difference compared with the management expenses presented in the comprehensive income is mainly due to the payment in the current period of the Long-Term Incentive Plan (LTIP) accrual of the previous year.

| in thousand EUR                  |                        |                                                  |                     |          |                |            |         |                        |                  |
|----------------------------------|------------------------|--------------------------------------------------|---------------------|----------|----------------|------------|---------|------------------------|------------------|
| INVESTMENT<br>PORTFOLIO          | FAIR                   | DIVESTMENTS<br>INVESTMENTS 12<br>AND REVENUES 12 |                     |          | MARKET         | FX         | FAIR    | VALUE                  |                  |
| BRIDGE<br>(1ST SEMESTER<br>2022) | VALUE AT<br>31/12/2021 | Cash                                             | Non<br>-<br>cash 14 | Cash     | Non<br>cash 14 | IMPACT     | IMPACT  | VALUE AT<br>30/06/2022 | CREATION<br>% 13 |
| Sofina Direct                    | 5,810,894              | 467,873                                          | 37,219              | -364,393 | -60,111        | -1,236,554 | 133,265 | 4,788,192              | -17%             |
| Sofina Private<br>Funds          | 5,252,521              | 275,889                                          | 53,007              | -271,952 | -61,620        | -598,454   | 410,178 | 5,059,569              | -3%              |
| Total Investment<br>portfolio    | 11,063,415             | 743,762                                          | 90,226              | -636,345 | -121,731       | -1,835,008 | 543,442 | 9,847,761              | -11%             |

### **Situation as at 31 December 2022**

|                                        |                  |                            | in thousand EUR |                       |                         |  |
|----------------------------------------|------------------|----------------------------|-----------------|-----------------------|-------------------------|--|
| COMPREHENSIVE INCOME (2022)            | SOFINA<br>DIRECT | SOFINA<br>PRIVATE<br>FUNDS | TOTAL           | RECONCILIN<br>G ITEMS | FINANCIAL<br>STATEMENTS |  |
| Dividends                              | 46,549           | 6,149                      | 52,698          | -4,560                | 48,138                  |  |
| Long-term minority investments         | 46,427           |                            |                 |                       |                         |  |
| Sofina Growth                          | 122              |                            |                 |                       |                         |  |
| Net result of the investment portfolio | -1,214,478       | -613,388                   | -1,827,866      | -50,185               | -1,878,051              |  |
| Long-term minority investments         | -835,315         |                            |                 |                       |                         |  |
| Sofina Growth                          | -379,163         |                            |                 |                       |                         |  |
| Management expenses                    |                  |                            | -73,433         | 28,167                | -45,266                 |  |
| Other                                  |                  |                            | -20,468         | 26,578                | 6,110                   |  |
| Total comprehensive income             |                  |                            | -1,869,069      | 0                     | -1,869,069              |  |
|                                        |                  |                            |                 |                       |                         |  |

|                                |                  |                            | in thousand EUR |                      |                         |
|--------------------------------|------------------|----------------------------|-----------------|----------------------|-------------------------|
| BALANCE SHEET (31/12/2022)     | SOFINA<br>DIRECT | SOFINA<br>PRIVATE<br>FUNDS | TOTAL           | RECONCILING<br>ITEMS | FINANCIAL<br>STATEMENTS |
| Investment portfolio           | 4,759,857        | 4,302,404                  | 9,062,261       | -522,278             | 8,539,983               |
| Long-term minority investments | 2,797,444        |                            |                 |                      |                         |
| Sofina Growth                  | 1,962,413        |                            |                 |                      |                         |
| Net cash                       |                  |                            | 233,051         | -109,636             | 123,415                 |
| Gross cash                     |                  |                            | 928,558         | -109,636             | 818,922                 |
| Financial liabilities          |                  |                            | -695,507        | 0                    | -695,507                |
| (In)tangible fixes assets      |                  |                            | 9,773           | -662                 | 9,111                   |
| Other assets and liabilities   |                  |                            | 8,244           | 632,576              | 640,820                 |
| NAV                            |                  |                            | 9,313,329       | 0                    | 9,313,329               |
|                                |                  |                            |                 |                      |                         |

|                                          |                  |                         |                        |                          | in thousand EUR   |
|------------------------------------------|------------------|-------------------------|------------------------|--------------------------|-------------------|
| MANAGEMENT CASH FLOW STATEMENT<br>(2022) | SOFINA<br>DIRECT | SOFINA PRIVATE<br>FUNDS | TOTAL<br>GROSS<br>CASH | FINANCIAL<br>LIABILITIES | TOTAL<br>NET CASH |
| Net cash at the beginning of the year    |                  |                         | 1,048,594              | -729,512                 | 319,082           |
| Dividends 15                             | 46,630           | 6,148                   | 52,778                 |                          | 52,778            |
| Management expenses 16                   |                  |                         | -92,210                |                          | -92,210           |
| Investments in portfolio                 | -570,705         | -442,685                | -1,013,390             |                          | -1,013,390        |
| Divestments from portfolio               | 399,408          | 774,564                 | 1,173,972              |                          | 1,173,972         |
| Dividends paid                           |                  |                         | -104,885               |                          | -104,885          |
| Other items                              |                  |                         | -101.301               | -995                     | -102,296          |
| Repayment of financial liabilities       |                  |                         | -35,000                | 35,000                   | 0                 |
| Net cash at the end of the year          |                  |                         | 928,558                | -695.507                 | 233,051           |

<sup>12.</sup> Net of intragroup transfers.

<sup>13.</sup> Fair value at the end of the period + Divestments and revenues of the period divided by Fair value at the beginning of the period + Investments of the period.

<sup>14.</sup> Mainly composed of escrows and cut-offs (i.e. differences when the realisation of a transaction and its cash impact occur in two different periods) and roll-overs of investments.

<sup>15.</sup> Difference compared with the dividends presented in the comprehensive income is mainly due to cut-offs between declaration and payment periods or to withholding taxes.

<sup>16.</sup> Difference compared with the management expenses presented in the comprehensive income is mainly due to the payment in the current year of the Long-Term Incentive Plan (LTIP) accrual of the previous year.

|                               |                                                                                                                                             |           |        |                        |                  |            |         |           | in thousand EUR |
|-------------------------------|---------------------------------------------------------------------------------------------------------------------------------------------|-----------|--------|------------------------|------------------|------------|---------|-----------|-----------------|
| INVESTMENT<br>PORTFOLIO       | DIVESTMENTS<br>INVESTMENTS 17<br>FAIR<br>AND REVENUES 17<br>VALUE AT<br>Non<br>-<br>Non<br>31/12/2021<br>Cash<br>Cash<br>cash 19<br>cash 19 |           |        |                        |                  | MARKET     | FX      | FAIR      | VALUE           |
| BRIDGE<br>(2022)              |                                                                                                                                             | IMPACT    | IMPACT | VALUE AT<br>31/12/2022 | CREATION<br>% 18 |            |         |           |                 |
| Sofina Direct                 | 5,810,894                                                                                                                                   | 570,705   | 1,093  | -446,038               | -9,671           | -1,188,487 | 21,361  | 4,759,857 | -18%            |
| Sofina Private<br>Funds       | 5,252,521                                                                                                                                   | 442,685   | 2,512  | -780,713               | -7,362           | -889,333   | 282,094 | 4,302,404 | -11%            |
| Total Investment<br>portfolio | 11,063,415                                                                                                                                  | 1,013,390 | 3,605  | -1,226,751             | -17,033          | -2,077,820 | 303,455 | 9,062,261 | -15%            |

<sup>17.</sup> Net of intragroup transfers.

<sup>18.</sup> Fair value at the end of the year + Divestments and revenues of the year divided by Fair value at the beginning of the year + Investments in the

year. 19. Mainly composed of escrows and cut-offs (i.e. differences when the realisation of a transaction and its cash impact occur in two different financial years).

The main movements in acquisitions and disposals relating to the Sofina Direct portfolio in the first half of 2023 (with a fair value in excess of EUR 10 million) concern the following financial assets:

|                               |                            | CORPORATE RIGHTS       |  |  |
|-------------------------------|----------------------------|------------------------|--|--|
|                               | % OWNERSHIP<br>INVESTED 20 | % OWNERSHIP<br>SOLD 20 |  |  |
| BA-K1 (Too Good To Go)        | 89.24%                     |                        |  |  |
| Biobest Group                 | 7.28%                      |                        |  |  |
| Drylock Technologies          | 2.91%                      |                        |  |  |
| Biotech Dental                |                            | 24,75%                 |  |  |
| Appalachian Mountains (Aohua) |                            | 0.00%                  |  |  |

The main net movements of more than EUR 10 million at 30 June 2023 relating to the Sofina Private Funds' portfolio concern investments in Sequoia and partial disposals of Iconiq funds.

The main Sofina Direct level 1 <sup>21</sup> investments (with a fair value in excess of EUR 10 million) held by the Sofina group as at 30 June 2023 are as follows:

|                     | YEAR OF THE           | CORPORATE RIGHTS HELD | FAIR VALUE     |                         |
|---------------------|-----------------------|-----------------------|----------------|-------------------------|
|                     | ST<br>1<br>INVESTMENT | NUMBER OF<br>SHARES   | %<br>OWNERSHIP | (IN<br>THOUSAND<br>EUR) |
| bioMérieux          | 2009                  | 2,282,513             | 1.93%          | 219,395                 |
| The Hut Group (THG) | 2016                  | 115,542,400           | 8.29%          | 109,716                 |
| GL events           | 2012                  | 4,768,057             | 15.90%         | 94,121                  |
| Luxempart           | 1992                  | 1,257,500             | 6.07%          | 91,798                  |
| Colruyt Group       | 1975                  | 2,332,064             | 1.74%          | 79,640                  |
| SCR - Sibelco       | 2005                  | 6,968                 | 1.48%          | 32,471                  |
| IHS Holding         | 2014                  | 1,465,816             | 0.44%          | 13,193                  |

The main Sofina Direct level 2 and level 3 <sup>21</sup> investments (with a fair value in excess of EUR 10 million) held by the Sofina group as at 30 June 2023 are as follows:

|                                | YEAR OF THE 1ST | CORPORATE RIGHTS HELD |             |
|--------------------------------|-----------------|-----------------------|-------------|
|                                | INVESTMENT      | NUMBER OF<br>SHARES   | % OWNERSHIP |
| B9 Beverages (Bira 91)         | 2018            | 3,784,140             | 6.60%       |
| Biobest Group                  | 2022            | 116,365               | 10.63%      |
| Birdie Care Services           | 2022            | 3,924,379             | 15.46%      |
| Cambridge Associates           | 2018            | 24,242                | 23.64%      |
| Carebridge Holdings            | 2016            | 15,347,479            | 4.11%       |
| Cleo AI                        | 2022            | 4,237,499             | 12.77%      |
| CoachHub                       | 2022            | 15,089                | 9.32%       |
| Collibra                       | 2020            | 6,936,516             | 2.91%       |
| Dreamplug Technologies (Cred)  | 2021            | 57,596                | 1.95%       |
| Drylock Technologies           | 2019            | 169,782,750           | 25.00%      |
| emTransit (Dott)               | 2021            | 10,143,368            | 20.25%      |
| Everdrop                       | 2022            | 5,669                 | 10.11%      |
| Grand Rounds (Included Health) | 2018            | 11,358,956            | 1.86%       |
| Grasper Global (Skillmatics)   | 2022            | 379,198               | 10.34%      |
| Green Agrevolution (DeHaat)    | 2021            | 479,611               | 12.08%      |
| Groupe Petit Forestier         | 2007            | 1,244,172             | 42.82%      |
| Hector Beverages               | 2015            | 3,576,234             | 18.11%      |
| Honasa Consumer (Mamaearth)    | 2021            | 3,304,434             | 9.49%       |
| IHS Holding                    | 2014            | 2,001,758             | 0.60%       |
| K12 Techno Services            | 2020            | 3,463,319             | 19.65%      |
| Labster Group                  | 2022            | 2,870,989             | 4.47%       |
| M.Chapoutier                   | 2007            | 3,124                 | 14.20%      |
| MedGenome                      | 2017            | 7,842,600             | 16.73%      |
| Mérieux NutriSciences          | 2014            | 43,278                | 15.45%      |
| Moody E-Commerce Group         | 2021            | 95,610                | 3.63%       |

20. Changes in undiluted ownership percentage as at 30 June 2023 due to new acquisitions and disposals of the period.

21. For the definitions of levels, see point 2.3 below.

| MXP Prime Platform (SellerX) | 2021 | 6,604       | 7.89%  |
|------------------------------|------|-------------|--------|
| Nuxe International           | 2019 | 193,261,167 | 49.00% |
| Oviva                        | 2021 | 101,207     | 11.44% |
| PETKIT Technology            | 2021 | 10,746,355  | 5.06%  |
| Pine Labs                    | 2015 | 147,582     | 1.88%  |
| Rohlik                       | 2022 | 48,776      | 8.73%  |
| Salto Systems                | 2020 | 22,293      | 12.17% |
| Tessian                      | 2021 | 3,637,815   | 4.69%  |
| Think & Learn (Byju's)       | 2016 | 230,902     | 5.14%  |
| ThoughtSpot                  | 2017 | 3,263,785   | 2.74%  |
| Twin Health                  | 2021 | 1,394,322   | 2.87%  |
| Typeform                     | 2022 | 69,208      | 6.93%  |
| Veepee                       | 2016 | 3,756,786   | 5.56%  |
| Ver Se Innovation            | 2019 | 415,952     | 7.16%  |
| Vinted                       | 2019 | 2,875,747   | 3.00%  |
| Vizgen                       | 2022 | 1,312,818   | 4.79%  |
| ZenCore (Cayman) (ZhenGe)    | 2021 | 6,438,337   | 3.86%  |

The main Sofina Direct level 2 and level 3 <sup>22</sup> investments (with a fair value in excess of EUR 10 million) held through syndication vehiclesgathering part of the shareholder base as at 30 June 2023 are as follows:

|                                                        | YEAR OF                   | CORPORATE RIGHTS<br>HELD |                | ESTIMATED<br>ECONOMIC                          |
|--------------------------------------------------------|---------------------------|--------------------------|----------------|------------------------------------------------|
|                                                        | THE 1ST<br>INVEST<br>MENT | NUMBER<br>OF<br>SHARES   | %<br>OWNERSHIP | INTEREST IN<br>THE<br>UNDERLYING<br>INVESTMENT |
| Aevum Investments (Xinyu)                              | 2018                      | -                        | 100.00%        | 4.90%                                          |
| Appalachian Mountains (Aohua)                          | 2018                      | 13,000                   | 46.43%         | 4.05%                                          |
| Atlantic Foods Labs Co-Invest II (Getir)               | 2021                      | -                        | 47.62%         | 0.20%                                          |
| Atlantic Foods Labs Co-Invest III (Getir)              | 2021                      | -                        | 77.71%         |                                                |
| BA-K1 (Too Good To Go)                                 | 2023                      | 1,667                    | 89.24%         | 1.51%                                          |
| Ergon opseo Long Term Value Fund (opseo)               | 2016                      | -                        | 8.82%          | 7.41%                                          |
| GoldIron (First Eagle)                                 | 2016                      | 21,721                   | 70.68%         | 3.97%                                          |
| Iconiq Strategic Partners III Co-Invest (Series<br>RV) | 2018                      | -                        | 7.15%          | 0.26%                                          |
| Kedaara Norfolk Holdings (Lenskart)                    | 2019                      | 158,355                  | 50.00%         | 0.99%                                          |
| Lernen Midco 1 (Cognita)                               | 2019                      | 252,517,8<br>93          | 15.55%         | 13.76%                                         |
| M.M.C. (Chapoutier)                                    | 2007                      | 15,256                   | 19.83%         | 15.33%                                         |
| MxBEE (Biobest Group)                                  | 2022                      | 7,820,09<br>3            | 26.64%         | 1.97%                                          |
| Polygone (GL events)                                   | 2012                      | 221,076                  | 20.96%         | 11.86%                                         |
| SC China Co-Investment 2016-A (ByteDance)              | 2016                      | -                        | 41.67%         | 0.18%                                          |
| TA Action Holdings (ACT)                               | 2016                      | -                        | 44.44%         | 3.65%                                          |
| TA Vogue Holdings (TCNS)                               | 2016                      | -                        | 48.72%         | 7.62%                                          |

The main General Partners that manage investment funds on our behalf, whose value individually exceeds EUR 10 million as at 30 June 2023 are Alpha JWC, Andreessen Horowitz, Archipelago, Atlantic Labs, Atomico, Bain, Battery; Bessemer, Bling, Blossom, Bond, Chryscapital, Crescent Point, DST, Everstone, Falcon House, Felix, Formation 8, Founders Fund, Foundry, Francisco, General Atlantic, Genesis, GGV, Highland, Iconiq, Insight, Institutional Venture Partners, InvAscent, Isola, Kedaara, Kleiner Perkins, Lightspeed, Local Globe, Lux Capital, Lyfe, Multiples, New Enterprise Associates, Northzone, OpenView, Qiming, Redpoint, Sequoia, Social+Capital, Sofindev, Source Code, Spark, Summit, TA Associates, TAEL, Thoma Bravo, Thrive, Tiger Global, Trustbridge and Venrock.

<sup>22.</sup> For the definition of levels, see point 2.3 below.

# **Main valuation rules for the investment portfolio**

The Sofina group uses a fair value hierarchy that reflects the significance of the data used for valuation purposes:

- **Level 1** Assets valued under level 1 are valued at the market price at the closing date;
- **Level 2** Assets valued under level 2 are valued based on observable data such as the market price of the main asset held by the company;
- **Level 3** Assets valued under level 3 are valued at fair value using principles derived from the International Private Equity and Venture Capital Valuation Guidelines ("IPEV" Valuation Guidelines of December 2022).

Unlisted securities are valued at each reporting date using a commonly accepted valuation method in these IPEV Valuation Guidelines, or at net asset value.

The different valuation methods are detailed in the table on the methods applied in accordance with IFRS 13 to determine the fair value of unlisted level 3 assets of the investment portfolio in transparency (Long-term minority investments, Sofina Growth and Sofina Private Funds).

Note that the IPEV Valuation Guidelines no longer consider the recent transaction price as a default valuation technique but rather a starting point for estimating fair value. The recent transaction price as a valuation technique is therefore only used when the recent transaction is sufficiently close to the balance sheet closing date (and meets the market and market participant criteria). It should also be noted that the context of the transaction is analysed and could therefore consider not only the primary components of a transaction but also the secondary components of the same transaction (e.g., retaining a blended price instead of the primary round price only).

The principle of calibration, which consists of testing or calibrating the valuation techniques to be used at subsequent valuation dates, using valuation parameters derived from the initial or most recent transaction, is applied as appropriate to all our valuations of unlisted investments (Long-term minority investments and Sofina Growth), provided that the price of the initial or most recent transaction is representative of the fair value at the time of the transaction and can be calibrated. The calibration makes it possible to derive from the entry price the discount or the premium against the group of comparable companies by comparing the rate of return expected by Sofina with the theoretical cost of capital for a given investment in the context of the implementation of the discounted cash flow method. The calibration also makes it possible to determine, directly at the transaction date, the discount or the premium against the group of comparable companies in the context of the implementation of the market multiples method. This technique explains the wide range of discounts, costs of capital or discount factors, as these are the result of the calibration.

This being said, Sofina may have to change the valuation technique depending on the circumstances from one valuation exercise to another (e.g. due to a new type of data available, a new recent transaction), with the objective of maximising the use of observable data and minimising the use of non-observable data.

In this respect, the following table provides information on the methods applied in accordance with IFRS 13 – Fair Value Measurement – to determine the fair value of unlisted level 3 assets.

It should also be noted that Sofina uses the option pricing method (OPM) to allocate the estimated equity fair value to various classes of equity shares considering their rights and preferences (if applicable). This allocation approach may significantly reduce the valuation of earlier equity rounds with reduced rights and preferences compared to the latest round.

The current economic crisis increases the uncertainty of the future performance of the investments held by Sofina. These uncertainties regarding the performance of these investments lead to a higher degree of subjectivity in the determination of level 3 fair values in the IFRS 13 hierarchy. This has prompted Sofina to be more vigilant in the application of its valuation methods. The following are especially worth mentioning:

- Particular vigilance regarding the consistency between the estimates of the portfolio companies and the use of these estimates compared to the use of the multiples of comparable companies;
- Particular vigilance regarding the validation of the most recent transaction by ensuring that this recent transaction takes into account the current context of the economic crisis (while respecting the other validation criteria of the most recent transaction such as being sufficiently close to the closing date) as well as ensuring that the context of the recent transaction is properly understood by considering both primary and secondary components (if applicable);
- Particular vigilance regarding the financial situation of the portfolio companies (e.g., cash burn estimates).

We also took into account the IPEV Board Special Valuation Guidance of December 2022.

It should be noted that Sofina has engaged Kroll, an independent valuation firm, to assist in the valuation of the unlisted investments by the Sofina Direct portfolio. The assistance provided by Kroll does not, therefore, cover Sofina Private Funds. All these unlisted investments (the "Investments"), covered by Kroll's assistance, represent 46% of the fair value of the portfolio in transparency, as illustrated below <sup>23</sup> .

| FAIR VALUE HIERARCHY               | LONG-TERM<br>MINORITY<br>INVESTMENTS | SOFINA GROWTH | SOFINA PRIVATE<br>FUNDS | % OF KROLL<br>COVERAGE ON<br>TOTAL LEVEL |
|------------------------------------|--------------------------------------|---------------|-------------------------|------------------------------------------|
| Level 1                            | Not covered                          | Not covered   | Not applicable          | 0%                                       |
| Level 2                            | Covered                              | Covered       | Not applicable          | 100%                                     |
| Level 3                            | Covered                              | Covered       | Not covered             | 50%                                      |
| Total portfolio in<br>transparency |                                      |               |                         | 46%                                      |

This assistance included various limited procedures that Sofina identified and requested Kroll to perform. In connection with and as a result of these limited procedures <sup>24</sup>, Kroll concluded that the fair value of the "Investments", as determined by Sofina, was reasonable.

Sofina Private Funds' investments in venture and growth capital funds are valued on the basis of the latest reports obtained from the General Partners of these investment funds until mid-August and their valuation is therefore based either on a report as at 30 June 2023 or on a report as of 31 March 2023. The values of the reports as at 31 March 2023 are adjusted to take into account (i) capital calls and distributions that have occurred since the date of issuance of the last report, (ii) changes in the stock market prices of the listed companies held by these funds and (iii) significant events that have occurred since this last valuation date and the closing date of 30 June 2023. The values as at 30 June 2023 are not adjusted as they reflect the fair value at the closing date. Finally, the values retained are converted into euro using the closing exchange rate. As the case may be, the funds for which a purchase and sale agreement was signed as at the date of this Half-year financial report are valued in accordance with the terms of the purchase and sale agreement. As at 30 June 2023, more than 72% of the Sofina Private Funds fair value is based either on reports as at 30 June 2023 or valuations based on market prices or transaction prices.

<sup>23.</sup> Covered: covered by Kroll's assistance; Not covered: not covered by Kroll's assistance; Not applicable: no value present at this level in the relevant investment style.

<sup>24.</sup> Limited procedures are not an audit, review, compilation or other form of examination or certification in accordance with generally accepted auditing standards. In addition, the limited procedures were not performed in anticipation of or in connection with any investment made or contemplated by Sofina. Accordingly, any party contemplating an investment in these "Investments" or any party contemplating an investment directly in the capital of Sofina should not consider the performance of these limited procedures by Kroll to be sufficient in light of the aforementioned investments. The results of Kroll's analysis should not be construed as a fairness opinion on any transaction or as a statement of creditworthiness. The limited procedures performed by Kroll are in addition to the procedures that Sofina is required to perform to estimate the fair value of the "Investments". The result of the analyses conducted by Kroll was taken into account by Sofina in its assessment of the fair value of the "Investments".

### **Methods applied in accordance with IFRS 13 to determine the fair value of unlisted level 3 assets in the investment portfolio in transparency**

| VALUATION<br>TECHNIQUE                                                                                                                                     | USE OF THE TECHNIQUE                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         | SIGNIFICANT<br>UNOBSERVABLE<br>DATA                                                                  | LINKS BETWEEN<br>UNOBSERVABLE DATA<br>AND FAIR VALUE                                                                                                                                                                                                                                                                          |
|------------------------------------------------------------------------------------------------------------------------------------------------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|------------------------------------------------------------------------------------------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| Price of the most<br>recent investment<br>(PORI)                                                                                                           | Whenever a recent and significant transaction has taken place<br>for the investment at the balance sheet date and provided that<br>the transaction meets the market and market participant<br>criteria.<br>Note that the IPEV Valuation Guidelines no longer consider the<br>recent transaction price as a default valuation technique but<br>rather as a starting point for estimating fair value. Therefore,<br>the recent transaction price as a valuation technique is only<br>used when the recent transaction is sufficiently close to the<br>closing date (and meets the market and market participant<br>criteria).<br>Funds for which a purchase and sale agreement was signed as<br>at the date of this Half-year financial report, are valued at the<br>terms of the purchase and sale agreement and are hence<br>considered as part of this valuation technique. | The fair value of<br>the most recent<br>transaction is<br>considered<br>unobservable<br>data.        | As the unobservable data<br>increases, the fair value<br>increases.                                                                                                                                                                                                                                                           |
| Discounted Cash<br>Flow model                                                                                                                              | Applied for mature companies or for companies where<br>sufficient information is available.<br>This method consists in discounting future expected cash                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      | Cost of capital<br>from calibration.                                                                 | The higher the cost of<br>capital, the lower the fair<br>value.                                                                                                                                                                                                                                                               |
|                                                                                                                                                            | flows.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       | Terminal value<br>based on a long<br>term growth rate.<br>Terminal value<br>based on an exit         | The higher the long-term<br>growth rate, the higher<br>the fair value.<br>The higher the exit<br>multiple, the higher the                                                                                                                                                                                                     |
|                                                                                                                                                            |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              | multiple.                                                                                            | fair value.                                                                                                                                                                                                                                                                                                                   |
| Market multiples<br>- sales or EBITDA<br>or earnings<br>multiples or a mix<br>of sales or EBITDA<br>multiples (based<br>on comparable<br>listed companies) | In the absence of a recent transaction on the investment at the<br>closing date and when the Discounted Cash Flow model is not<br>applied.<br>The calibration principle is used to determine the discount to<br>the group of comparable listed companies.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    | Discount 25<br>resulting from the<br>calibration<br>against the group<br>of comparable<br>companies. | The higher the discount,<br>the lower the fair value.                                                                                                                                                                                                                                                                         |
| Probability<br>Weighted<br>Expected Returns                                                                                                                | Start-ups or "early stage" companies or certain companies for<br>which significantly different scenarios remain possible, when<br>other methods cannot be applied (recent transaction,<br>Model or Scenario<br>Discounted Cash Flow model, market multiples), are valued<br>Methods (PWERM)<br>according to scenarios.<br>Such companies are valued on the basis of different possible<br>future scenarios (probability–weighted fair value of future<br>outcomes).                                                                                                                                                                                                                                                                                                                                                                                                          |                                                                                                      | The higher the discount<br>factor, the lower the fair<br>value.                                                                                                                                                                                                                                                               |
|                                                                                                                                                            |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |                                                                                                      | The higher the weight of<br>the pessimistic scenario,<br>the lower the fair value.                                                                                                                                                                                                                                            |
|                                                                                                                                                            |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              | Exit value based<br>on an exit<br>multiple.                                                          | The higher the exit<br>multiple, the higher the<br>fair value.                                                                                                                                                                                                                                                                |
| Milestones<br>approach                                                                                                                                     | This valuation method is applied to start-ups or "early-stage"<br>companies or companies for which important milestones must<br>be achieved and when other methods (i.e. recent transaction,<br>discounted cash flow model, market multiples and PWERM)<br>are not applicable.<br>Such companies are valued using the milestone approach. This<br>method consists in assessing whether there is an indication of<br>change in fair value based on a consideration of one or more<br>milestones. One or several key milestones are commonly<br>established in function of the stage of development of the<br>company. Milestones can for example include financial<br>measures, technical measures and marketing and sales<br>measures.                                                                                                                                       | Discount applied<br>per level<br>according to the<br>predefined<br>milestones.                       | A discount is applied per<br>milestone. If a milestone is<br>achieved, the more the<br>unobservable data<br>increases or decreases,<br>the more the fair value<br>increases or decreases. If<br>the first milestone is not<br>achieved, the more the<br>unobservable data<br>decreases, the more the<br>fair value decreases. |
| Revalued net<br>assets recognised<br>at fair value                                                                                                         | This valuation method is based on the latest available<br>statements from the General Partners.<br>This method consists in using the reported net assets value of<br>a fund interest which is adjusted for (i) the capital calls and<br>distributions that took place after the last statement received<br>and the measurement date, (ii) the evolution of the listed<br>companies held by the funds and (iii) any other significant<br>events. The underlying investments of the fund must be<br>reported at fair value.                                                                                                                                                                                                                                                                                                                                                    | Fair value based<br>on General<br>Partners' reports<br>is considered<br>unobservable<br>data.        | As the unobservable data<br>increases, the fair value<br>increases.                                                                                                                                                                                                                                                           |
| Other methods                                                                                                                                              | In exceptional cases, another methodology is considered to<br>better reflect the fair value of the investment or a portion of<br>the investment (e.g. an appraisal report on the value of land or<br>property).                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              | Fair value based<br>on expert reports<br>is considered<br>unobservable<br>data.                      | As the unobservable data<br>increases, the fair value<br>increases.                                                                                                                                                                                                                                                           |

<sup>25.</sup> In some cases, a premium is applied against the group of comparable companies, also based on the calibration principle. In some exceptional cases, the discount is estimated on the basis of methods other than calibration.

### **Method applied to allocate the estimated equity fair value to various classes of equity shares considering their respective rights and preferences**

| VALUATION<br>TECHNIQUE        | USE OF THE TECHNIQUE                                                                                                                                                                                                                                                                              | SIGNIFICANT<br>UNOBSERVABLE<br>DATA                             | LINKS BETWEEN<br>UNOBSERVABLE DATA<br>AND FAIR VALUE                                                                                         |
|-------------------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|-----------------------------------------------------------------|----------------------------------------------------------------------------------------------------------------------------------------------|
| Option pricing<br>model (OPM) | Applied for companies where rights and preferences may<br>differ significantly between the classes of shares. Applied<br>when applicable and relevant (e.g. different rights and<br>preferences exist per class of shares and market participant<br>would consider those rights and preferences). | Volatility                                                      | An increase of the<br>volatility can either<br>increase or decrease the<br>fair value depending on<br>the classes of shares<br>held.         |
|                               |                                                                                                                                                                                                                                                                                                   | Time to expiration<br>(e.g. time of exit or<br>liquidity event) | An increase of the time<br>to expiration can either<br>increase or decrease the<br>fair value depending on<br>the classes of shares<br>held. |
|                               |                                                                                                                                                                                                                                                                                                   | Interest rate in local<br>currency                              | An increase of the<br>interest rate can either<br>increase or decrease the<br>fair value depending on<br>the classes of shares<br>held.      |

|                                |                           |         |         | in thousand EUR |
|--------------------------------|---------------------------|---------|---------|-----------------|
|                                | TOTAL AS AT<br>30/06/2023 | LEVEL 1 | LEVEL 2 | LEVEL 3         |
| Investment portfolio 26        | 9,061,166                 | 658,546 | 55,556  | 8,347,254       |
| Sofina Direct                  | 4,847,242                 | 658,546 | 55,556  | 4,133,140       |
| Long-term minority investments | 2,811,356                 | 635,172 | 0       | 2,176,184       |
| Sofina Growth                  | 2,035,886                 | 23,374  | 55,556  | 1,956,956       |
| Sofina Private Funds           | 4,213,924                 | 0       | 0       | 4,213,924       |
|                                | TOTAL AS AT<br>31/12/2022 | LEVEL 1 | LEVEL 2 | LEVEL 3         |
| Investment portfolio           | 9,062,261                 | 559,699 | 84,419  | 8,418,144       |
| Sofina Direct                  | 4,759,857                 | 559,699 | 84,419  | 4,115,739       |
| Long-term minority investments | 2,797,444                 | 545,544 | 0       | 2,251,900       |
| Sofina Growth                  | 1,962,413                 | 14,155  | 84,419  | 1,863,839       |
| Sofina Private Funds           | 4,302,404                 | 0       | 0       | 4,302,404       |

The underlying portfolio of the funds held in Sofina Private Funds is composed of listed and unlisted assets. The listed assets fair value <sup>27</sup> is estimated at EUR 497,275 thousand as at 30 June 2023 and at EUR 489,644 thousand as at 31 December 2022.

During the period, a part of our investment in IHS Holding has been transferred from level 2 to level 1.

# **Sensitivity analysis of level 3**

Level 3 consists of unlisted securities subject to price risk, but this risk is mitigated by the wide variety of investments made by the Sofina group. The objective of long-term value creation pursued by the Sofina group contributes towards mitigating this risk.

In the case of investments in venture and growth capital funds of Sofina Private Funds, the General Partners may decide more quickly to modify a negative spread. Market risk may also have an indirect impact on unlisted securities compared to securities listed on stock markets.

Moreover, liquidity risk has a greater impact on unlisted securities than on listed securities, which can make their value difficult to estimate. This risk may have an impact on the holding period of unlisted securities as well as on the exit price. It is difficult to quantify the influence of these risks on unlisted securities in level 3.

<sup>26.</sup> Information on the investment portfolio in the balance sheet as at 30 June 2023 can be found under point 2.1 above.

<sup>27.</sup> Estimated fair value based on available information provided by the General Partners.

### **Sensitivity analysis for the level 3 investment portfolio in transparency as at 30 June 2023**

|                                                       |               |                     |                                                                                                  |                   |                 |                 | in million EUR  |
|-------------------------------------------------------|---------------|---------------------|--------------------------------------------------------------------------------------------------|-------------------|-----------------|-----------------|-----------------|
| VALUATION<br>TECHNIQUE                                | FAIR<br>VALUE | OPM<br>APP<br>LIED? | UNOBSERVABLE DATA<br>(WEIGHTED AVERAGE)                                                          | SENSI<br>TIVITY   | IMPACT<br>VALUE | SENSI<br>TIVITY | IMPACT<br>VALUE |
| Price of the most<br>recent investment<br>(PORI)      | 4             | No                  | The fair value of the most<br>recent transaction is<br>considered to be<br>unobservable data     | +10%              | 0               | -10%            | -0              |
|                                                       |               |                     | Cost of capital from<br>calibration between 7.2% and<br>18.3% (11.9%)                            | +10%              | -262            | -10%            | 332             |
| Discounted Cash<br>Flow model                         | 1,814         | No                  | Perpetual growth rate of 2.5%<br>and 3.5% (3.1%)                                                 | +10%              | 67              | -10%            | -65             |
|                                                       |               |                     | Output multiple between 5.3x<br>and 19.2x (12.8x)                                                | +10%              | 155             | -10%            | -130            |
|                                                       |               | No                  | Median peers revenue<br>multiple between 0.5x and<br>13.2x (3.7x)                                | +10%              | 108             | -10%            | -108            |
|                                                       |               |                     | Median peers gross profit<br>multiple between 6.2x and<br>6.2x (6.2x)                            | +10%              | 1               | -10%            | -1              |
| Market multiples                                      | 1,339         |                     | Median peers EBITDA<br>multiple between 9.0x and<br>13.8x (11.3x)                                | +10%              | 59              | -10%            | -57             |
|                                                       |               |                     | Median peers net income<br>multiple between 2,0x and<br>17,0x (9.5x)                             | +10%              | 72              | -10%            | -72             |
|                                                       |               |                     | Discount resulting from<br>calibration between 6.7% and<br>50.9% 28 (21%)                        | +10%              | 39              | -10%            | -40             |
|                                                       |               |                     | Median peers revenue<br>multiple between 0.9x and<br>13.6x (9.4x)                                | +10%              | 172             | -10%            | -180            |
|                                                       |               |                     | Median peers gross profit<br>multiple between 6.6x and<br>11.4x (8.4x)                           | +10%              | 6               | -10%            | -6              |
|                                                       | 818           | Yes                 | Discount resulting from<br>calibration between 15.3% and<br>57.6% 29 (33.3%)                     | +10%              | 22              | -10%            | -22             |
|                                                       |               |                     | Volatility between 21.9% and<br>85.5% (44.6%)                                                    | +10%              | -87             | -10%            | 87              |
|                                                       |               |                     | Time to expiration between<br>0.5 years and 7.5 years (3.7<br>years)                             | +10%              | -70             | -10%            | 74              |
|                                                       |               |                     | Interest rate between 1.1% and<br>7.1% (4.4%)                                                    | +10%              | -22             | -10%            | 22              |
| Revalued net assets<br>recognised at fair<br>value 30 | 4,274         | No                  | The fair value based on<br>General Partners' reports is<br>considered to be<br>unobservable data | +10%              | 428             | -10%            | -428            |
| Milestone approach                                    | 6             | No                  | Discount of 20% per level<br>(20%)                                                               | Upper<br>level 31 | 1               | Lower<br>level  | -1              |
| Other methods                                         | 92            | No                  | Fair value is considered to be<br>unobservable data                                              | +10%              | 9               | -10%            | -9              |
| Total level 3 (in<br>transparency)                    | 8,347         |                     |                                                                                                  |                   |                 |                 |                 |
| Reconciling items                                     | -273          |                     |                                                                                                  |                   |                 |                 |                 |
| Total level 3<br>(financial<br>statements)            | 8,074         |                     |                                                                                                  |                   |                 |                 |                 |

The reconciling items between the presentation in transparency and the balance sheet presentation are detailed, at all levels, in point 2.1 above.

<sup>28.</sup> In some cases, a premium is applied against the group of comparable companies. The premiums applied range from 12.3% to 793.1% (weighted average of 284.2%). In certain exceptional cases, the discount is estimated on the basis of methods other than calibration.

<sup>29.</sup> In some cases, a premium is applied against the group of comparable companies. The premiums applied range from 1.5% to 882.4% (weighted average of 173.5%). In certain exceptional cases, the discount is estimated on the basis of methods other than calibration. 30. Mainly concerns the portfolio of Sofina Private Funds and to a limited extent investments by Sofina Growth.

<sup>31.</sup> No upper level was reached.

### **Sensitivity analysis for the level 3 investment portfolio in transparency as at 31 December 2022**

|                                                       |               |                     |                                                                                                  |                   |                 |                 | in million EUR  |
|-------------------------------------------------------|---------------|---------------------|--------------------------------------------------------------------------------------------------|-------------------|-----------------|-----------------|-----------------|
| VALUATION<br>TECHNIQUE                                | FAIR<br>VALUE | OPM<br>APP<br>LIED? | UNOBSERVABLE DATA<br>(WEIGHTED AVERAGE)                                                          | SENSI<br>TIVITY   | IMPACT<br>VALUE | SENS<br>ITIVITY | IMPACT<br>VALUE |
| Price of the most recent<br>investment (PORI)         | 116           | No                  | The fair value of the most<br>recent transaction is<br>considered to be<br>unobservable data     | +10%              | 12              | -10%            | -12             |
|                                                       |               |                     | Cost of capital from<br>calibration between 6.95%<br>and 17.7% (11.9%)                           | +10%              | -270            | -10%            | 343             |
| Discounted Cash Flow<br>model                         | 1,699         | No                  | Perpetual growth rate of<br>2.5% and 4.0% (3.1%)                                                 | +10%              | 48              | -10%            | -44             |
|                                                       |               |                     | Output multiple between<br>6.5x and 17.91x (13.07x)                                              | +10%              | 126             | -10%            | -126            |
|                                                       |               | No                  | Median peers multiple<br>between 0.9x and 17.2x<br>(5.1x)                                        | +10%              | 118             | -10%            | -118            |
| Market multiples                                      | 1.377         |                     | Discount resulting from<br>calibration between 0.2%<br>and 58% 32 (12.7%)                        | +10%              | -39             | -10%            | 39              |
|                                                       | 771           | Yes                 | Median peers multiple<br>between 0.5x and 22.3x<br>(6.6x)                                        | +10%              | 48              | -10%            | -47             |
|                                                       |               |                     | Discount resulting from<br>calibration between 15%<br>and 58%33 (35.6%)                          | +10%              | -30             | -10%            | 29              |
|                                                       |               |                     | Volatility between 27% and<br>70% (44.3%)                                                        | +10%              | -7              | -10%            | 6               |
|                                                       |               |                     | Time to expiration<br>between 1.0 years and 8.0<br>years (4.2 years)                             | +10%              | -7              | -10%            | 7               |
|                                                       |               |                     | Interest rate between 1.3%<br>and 7.2% (4.5%)                                                    | +10%              | -4              | -10%            | 4               |
| Revalued net assets<br>recognised at fair value<br>34 | 4,348         | No                  | The fair value based on<br>General Partners' reports is<br>considered to be<br>unobservable data | +10%              | 435             | -10%            | -435            |
| Milestone approach                                    | 9             | No                  | Discount of 20% per level<br>(20%)                                                               | Upper<br>level 35 | 0               | Lower<br>level  | -2              |
| Other methods                                         | 98            | No                  | Fair value is considered to<br>be unobservable data                                              | +10%              | 10              | -10%            | -10             |
| Total level 3<br>(in transparency)                    | 8,418         |                     |                                                                                                  |                   |                 |                 |                 |
| Reconciling items                                     | -267          |                     |                                                                                                  |                   |                 |                 |                 |
| Total level 3<br>(financial statements)               | 8,151         |                     |                                                                                                  |                   |                 |                 |                 |

The reconciling items between the transparency presentation and the balance sheet presentation are detailed, at all levels, in point 2.1 above.

<sup>32.</sup> In some cases, a premium is applied against the group of comparable companies. The premiums applied range from 1.7% to 1,043% (weighted average of 319%). In certain exceptional cases, the discount is estimated based on methods other than calibration.

<sup>33.</sup> In some cases, a premium is applied against the group of comparable companies. The premiums applied range from 4% to 967% (weighted average of 282.4%). In certain exceptional cases, the discount is estimated based on methods other than calibration. 34. Mainly concerns the portfolio of Sofina Private Funds and to a limited extent investments by Sofina Growth.

<sup>35.</sup> No upper level was reached.

### **Foreign exchange risk**

The investment portfolio is subjected, among other things, to foreign exchange risk. The main foreign exchange risk relates to assets denominated in US dollars, British pounds and Indian rupees. For information purposes, a 10% increase or decrease in the exchange rate of these three currencies as at 30 June 2023 would result in a variation in the fair value of the portfolio as shown in the table below:

|                           |       |       |       |      |     |      |      |     | in million EUR |
|---------------------------|-------|-------|-------|------|-----|------|------|-----|----------------|
|                           |       | USD   |       |      | GBP |      |      | INR |                |
| Exchange rate sensitivity | -10%  | 0%    | +10%  | -10% | 0%  | +10% | -10% | 0%  | +10%           |
| Fair value                | 6.027 | 5.425 | 4.932 | 548  | 493 | 448  | 727  | 654 | 595            |
| Impact on revenue         | 602   | 0     | -493  | 55   | 0   | -45  | 73   | 0   | -59            |

### **Price risk**

Price risk is defined as the risk that unfavourable changes in stock prices impact Sofina's portfolio. Sofina is exposed to market fluctuations in its portfolio.

The risk analysis of level 1 and level 2 investments is shown below. A variation interval of -10% and +10% has been applied to the valuation as at 30 June 2023. This variance influences the result.

|                         |         |     |      |         |    | In million EUR |
|-------------------------|---------|-----|------|---------|----|----------------|
|                         | LEVEL 1 |     |      | LEVEL 2 |    |                |
| Stock price sensitivity | -10%    | 0%  | +10% | -10%    | 0% | +10%           |
| Fair value              | 593     | 659 | 724  | 50      | 56 | 60             |
| Impact on revenue       | -66     | 0   | 66   | -6      | 0  | 6              |

### **Interest rate risk and liquidity risk**

The interest rate risk is the risk that the interest flow on the financial debt and the gross cash flow may be adversely affected by an unfavourable change in interest rates. In the case at hand, the risk is limited as the financial liabilities are mainly at fixed rates. Moreover, Sofina's net cash position is positive. However, Sofina has commitments to disburse funds in relation to the Sofina Private Funds investments. Considering its positive Net cash position, the existence of bank credit lines (unused – please refer to point 3.13), the investments in shares listed on liquid markets and therefore easily realisable (in the Long-term minority investments and Sofina Private Funds portfolios), and if need be the ability to transact on the secondary market for Sofina Private Funds, the liquidity risk faced by Sofina is extremely moderate.

|                                                     |            | In million EUR |
|-----------------------------------------------------|------------|----------------|
| SOFINA PRIVATE FUNDS'<br>RESIDUAL COMMITMENT BRIDGE | 30/06/2023 | 31/12/2022     |
| Beginning of the period                             | 1,336      | 976            |
| New commitments                                     | 126        | 810            |
| Investments                                         | -154       | -445           |
| Other 36                                            | 5          | -86            |
| FX impact                                           | -23        | 81             |
| End of the period 37                                | 1,290      | 1,336          |

### **Credit risk**

The credit risk is the counterparty risk on gross cash. It is limited a priori by the choice of reputable financial institutions.

<sup>36.</sup> Others mainly comprises recallable distributions, disposals and termination of funds with residual uncalled commitments.

<sup>37.</sup> Additional residual commitments in relation to Sofina Direct investments of EUR 46 million as at 30 June 2023 and of EUR 7 million as at 31

December 2022 bring the total uncalled commitments to EUR 1,336 million and EUR 1,343 million respectively.

# **Concentration risk**

The 10 largest investments of Sofina Direct represent 27% of the fair value of the fair value of the portfolio in transparency <sup>38</sup>:

| 1  | SC China Co-Investment 2016-A (ByteDance) |
|----|-------------------------------------------|
| 2  | Groupe Petit Forestier                    |
| 3  | Lernen Midco 1 (Cognita)                  |
| 4  | Cambridge Associates                      |
| 5  | Drylock Technologies                      |
| 6  | Nuxe International                        |
| 7  | bioMérieux                                |
| 8  | Ver Se Innovation                         |
| 9  | Mérieux NutriSciences                     |
| 10 | Salto Systems                             |

It should be noted that:

- the 5 largest investments of Sofina Direct represent more than 15% but less than 20% of the total portfolio in transparency <sup>39</sup> .
- the 7 largest investments of Sofina Direct represent more than 20% of the total portfolio in transparency 39 .
- ByteDance, a global internet and technology company active in more than 150 countries, is the sole holding representing more than 5% of the fair value of the portfolio in transparency (when considering our combined holdings through Sofina Direct and Sofina Private Funds) <sup>40</sup> .

Sofina values its holding in SC China Co-Investment 2016-A (i.e. the vehicle holding Sofina direct's investment in ByteDance) on the basis of the market multiples valuation method with an illiquidity discount. Its holding in ByteDance at Sofina Private Funds level is valued on the basis of the valuation provided by the General Partners of the relevant funds.

The level 3 investments in the top 10 are valued according to the Discounted Cash Flow model, market multiples or the last recent transaction method as described in section 2.3 above.

The 10 largest General Partners of Sofina Private Funds represent 24% of the fair value of the portfolio in transparency <sup>41</sup> :

| 1  | Sequoia Capital (US, China & India) |
|----|-------------------------------------|
| 2  | Lightspeed                          |
| 3  | Insight Partners                    |
| 4  | Battery Ventures                    |
| 5  | Iconiq Capital                      |
| 6  | Thoma Bravo                         |
| 7  | TA Associates                       |
| 8  | Andreessen Horowitz                 |
| 9  | Spark Capital                       |
| 10 | Venrock                             |

Since the funds themselves are invested in a large number of companies, there is no concentration risk.

<sup>38.</sup> Listed in decreasing order of fair value as at 30 June 2023 (portfolio in transparency). The ranking of our Sofina Direct investments does not take into consideration indirect exposures on these entities, held through some funds of Sofina Private Funds.

<sup>39.</sup> Largest investments in terms of representation in the fair value of the portfolio in transparency. Listed in decreasing order of fair value at 30 June 2023 (portfolio in transparency). The ranking of our Sofina Direct investments does not take into consideration indirect holdings in these entities through certain partnerships of Sofina Private Funds.

<sup>40.</sup> The holding in ByteDance through Sofina Private Funds is an estimate based on the information contained in the reports of the General Partners made available to us at the date of this Half-year financial report.

<sup>41.</sup> Largest General Partners in terms of estimated representation of their funds in the fair value of Sofina's portfolio in transparency. Listed in decreasing order of fair value at 30 June 2023.

### **War in Ukraine**

As per ESMA's [recommendation of 14 March 2022](https://www.esma.europa.eu/press-news/esma-news/esma-coordinates-regulatory-response-war-in-ukraine-and-its-impact-eu-financial) [Public](https://www.esma.europa.eu/sites/default/files/library/esma32-63-1277_public_statement_on_half-yearly_financial_reports_in_relation_to_russias_invasion_of_ukraine.pdf) [Statement of 13 May 2022 on Implications of Russia's](https://www.esma.europa.eu/sites/default/files/library/esma32-63-1277_public_statement_on_half-yearly_financial_reports_in_relation_to_russias_invasion_of_ukraine.pdf)  [invasion of Ukraine on half-yearly financial reports,](https://www.esma.europa.eu/sites/default/files/library/esma32-63-1277_public_statement_on_half-yearly_financial_reports_in_relation_to_russias_invasion_of_ukraine.pdf) and [Public](https://www.esma.europa.eu/sites/default/files/library/esma32-63-1320_esma_statement_on_european_common_enforcement_priorities_for_2022_annual_reports.pdf) [Statement of 28 October 2022 on the European](https://www.esma.europa.eu/sites/default/files/library/esma32-63-1320_esma_statement_on_european_common_enforcement_priorities_for_2022_annual_reports.pdf)  [common](https://www.esma.europa.eu/sites/default/files/library/esma32-63-1320_esma_statement_on_european_common_enforcement_priorities_for_2022_annual_reports.pdf) [enforcement priorities for 2022 annual financial reports,](https://www.esma.europa.eu/sites/default/files/library/esma32-63-1320_esma_statement_on_european_common_enforcement_priorities_for_2022_annual_reports.pdf) Sofina can confirm that it has very limited specific exposure to the Ukraine crisis, which has had no material direct impact on its activities. The group is not impacted by the economic sanctions enforced by the European Union. Sofina Direct portfolio companies with notable operations or exposure in Ukraine or Russia represent 3% of total portfolio fair value in transparency as at 30 June 2023. Sofina Private Funds is marginally exposed to underlying companies with some presence in Ukraine or in Russia which are estimated to represent a small proportion of total number of companies in the underlying portfolio. General Partners have investigated their potential Russian ties including tracing Russian money in their investors base and they have not reported any significant issue in this respect. The main potential economic consequences of the Ukraine crisis on the portfolio are not specific in nature as they relate to its impact on raw material prices including energy, potential supply chain disruptions, concerns about an increasing risk of cyberattacks and more generally, the macro-economic impact on GDP growth, inflation and interest rates. A large number of portfolio companies and General Partners and their employees are engaged in a variety of initiatives to support Ukraine in line with that which Sofina has been doing.

|                                                |                         |      |                            |      |                         |      |                         | in million EUR |  |
|------------------------------------------------|-------------------------|------|----------------------------|------|-------------------------|------|-------------------------|----------------|--|
|                                                | 30/06/2023              |      |                            |      | 31/12/2022              |      |                         |                |  |
| GEOGRAPHIC REGION                              | PORTFOLIO FAIR<br>VALUE |      | RESIDUAL<br>COMMITMENTS 43 |      | PORTFOLIO FAIR<br>VALUE |      | RESIDUAL<br>COMMITMENTS |                |  |
| Sofina Direct                                  |                         |      |                            |      |                         |      |                         |                |  |
| North America                                  | 553                     | 11%  | 2                          | 4%   | 516                     | 11%  | 2                       | 35%            |  |
| Western Europe                                 | 2,828                   | 58%  | 43                         | 94%  | 2,610                   | 55%  | 4                       | 52%            |  |
| Asia                                           | 1,436                   | 30%  | 1                          | 2%   | 1,616                   | 34%  | 1                       | 13%            |  |
| Other                                          | 30                      | 1%   | 0                          | 0%   | 18                      | 0%   | 0                       | 0%             |  |
| Total Sofina Direct                            | 4,847                   | 100% | 46                         | 100% | 4,760                   | 100% | 7                       | 100%           |  |
| Sofina Private Funds                           |                         |      |                            |      |                         |      |                         |                |  |
| North America                                  | 2,635                   | 62%  | 736                        | 57%  | 2,711                   | 63%  | 778                     | 58%            |  |
| Western Europe                                 | 408                     | 10%  | 179                        | 14%  | 407                     | 9%   | 191                     | 14%            |  |
| Asia                                           | 1,171                   | 28%  | 375                        | 29%  | 1,184                   | 28%  | 367                     | 28%            |  |
| Total Sofina Private Funds                     | 4,214                   | 100% | 1,290                      | 100% | 4,302                   | 100% | 1,336                   | 100%           |  |
| TOTAL SOFINA DIRECT AND<br>SOFIA PRIVATE FUNDS |                         |      |                            |      |                         |      |                         |                |  |
| North America                                  | 3,188                   | 35%  | 738                        | 55%  | 3,227                   | 36%  | 780                     | 58%            |  |
| Western Europe                                 | 3,236                   | 36%  | 222                        | 17%  | 3,017                   | 33%  | 195                     | 15%            |  |
| Asia                                           | 2,607                   | 29%  | 376                        | 28%  | 2,800                   | 31%  | 368                     | 27%            |  |
| Other                                          | 30                      | 0%   | 0                          | 0%   | 18                      | 0%   | 0                       | 0%             |  |
| TOTAL OF THE PORTFOLIO 44                      | 9,061                   | 100% | 1,336                      | 100% | 9,062                   | 100% | 1,343                   | 100%           |  |

# **Breakdown of portfolio by geographic region <sup>42</sup>**

# **Breakdown of Sofina Direct by sector**

The table below shows the sectoral breakdown of Sofina Direct as at 30 June 2023 and as at 31 December 2022 44

|                              |                      |      | in million EUR       |      |  |  |
|------------------------------|----------------------|------|----------------------|------|--|--|
|                              | 30/06/2023           |      | 31/12/2022           |      |  |  |
| SECTOR                       | PORTFOLIO FAIR VALUE |      | PORTFOLIO FAIR VALUE |      |  |  |
| Consumer and retail          | 1,595                | 33%  | 1,329                | 28%  |  |  |
| Digital transformation       | 1,087                | 22%  | 987                  | 21%  |  |  |
| Education                    | 537                  | 11%  | 714                  | 15%  |  |  |
| Healthcare and life sciences | 613                  | 13%  | 740                  | 15%  |  |  |
| Other                        | 1,015                | 21%  | 990                  | 21%  |  |  |
| Total                        | 4,847                | 100% | 4,760                | 100% |  |  |

<sup>42.</sup> Based on the portfolio in transparency considering the country of the main or historical headquarters of the investments.

<sup>43.</sup> These amounts come mainly from subscriptions to investments by Sofina Private Funds amounting to EUR 1,290 million (see point 3.13 below). These commitments are subscribed by Sofina SA or by its investment subsidiaries (seen in transparency).

<sup>44.</sup> Based on the fair value of the Sofina group's investments as at 30 June 2023 and as at 31 December 2022 (portfolio in transparency – see point 2.4 above).

### **Breakdown of Sofina Private Funds by strategy**

|                 | in million EUR          |                                                       |       |      |                         |      |       |      |  |
|-----------------|-------------------------|-------------------------------------------------------|-------|------|-------------------------|------|-------|------|--|
|                 | 30/06/2023              |                                                       |       |      | 31/12/2022              |      |       |      |  |
| STRATEGY        | PORTFOLIO FAIR<br>VALUE | RESIDUAL<br>PORTFOLIO<br>COMMITMENTS 45<br>FAIR VALUE |       |      | RESIDUAL<br>COMMITMENTS |      |       |      |  |
| Venture capital | 2,969                   | 71%                                                   | 784   | 61%  | 3,075                   | 72%  | 830   | 62%  |  |
| Growth equity   | 1,015                   | 24%                                                   | 431   | 33%  | 1,002                   | 23%  | 422   | 32%  |  |
| LBO             | 222                     | 5%                                                    | 63    | 5%   | 216                     | 5%   | 72    | 13%  |  |
| Other           | 8                       | 0%                                                    | 12    | 1%   | 9                       | 0%   | 12    | 1%   |  |
| Total 46        | 4,214                   | 100%                                                  | 1,290 | 100% | 4,302                   | 100% | 1,336 | 100% |  |

### **Breakdown of Sofina Private Funds by vintage in transparency**

|                     |                         |      |                            |      |                                                    |      |            | in million EUR |
|---------------------|-------------------------|------|----------------------------|------|----------------------------------------------------|------|------------|----------------|
|                     | 30/06/2023              |      |                            |      |                                                    |      | 31/12/2022 |                |
| VINTAGE             | PORTFOLIO FAIR<br>VALUE |      | RESIDUAL<br>COMMITMENTS 45 |      | PORTFOLIO<br>RESIDUAL<br>FAIR VALUE<br>COMMITMENTS |      |            |                |
| Last 5 years        | 2,214                   | 52%  | 1,187                      | 92%  | 2,174                                              | 50%  | 1,230      | 92%            |
| From 5 to 10 years  | 1,553                   | 37%  | 72                         | 6%   | 1,633                                              | 38%  | 74         | 6%             |
| Older than 10 years | 447                     | 11%  | 31                         | 2%   | 495                                                | 12%  | 32         | 2%             |
| Total 46            | 4,214                   | 100% | 1,290                      | 100% | 4,302                                              | 100% | 1,336      | 100%           |

<sup>45.</sup> Sofina is committed to responding to capital calls by certain private funds (see point 3.13 below).

<sup>46.</sup> Information on the Sofina Private Funds portfolio shown in the balance sheet as at 30 June 2023 can be found under point 2.1 above.

|                                                 |            | in thousand EUR |
|-------------------------------------------------|------------|-----------------|
|                                                 | 30/06/2023 | 31/12/2022      |
| Investments                                     |            |                 |
| Net value at the beginning of the period        | 8,538,603  | 10,385,873      |
| Acquisitions during the period                  | 59,787     | 45,825          |
| Disposals during the period                     | -96,878    | -13,774         |
| Changes in unrealised gains in profit and loss  | 218,968    | 95,883          |
| Changes in unrealised losses in profit and loss | -219,217   | -1,975,204      |
| Net value at the end of the period = 1          | 8,501,263  | 8,538,603       |
|                                                 |            |                 |
| Receivables                                     |            |                 |
| Net value at the beginning of the period        | 1,380      | 0               |
| Acquisitions during the period                  | 67         | 1,345           |
| Disposals during the period                     | 0          | 0               |
| Changes in unrealised gains in profit and loss  | 0          | 0               |
| Changes in unrealised losses in profit and loss | 0          | 0               |
| Changes in accrued interest not yet due         | -33        | 35              |
| Net value at the end of the period = 2          | 1,414      | 1,380           |
| Net value = 1 + 2                               | 8,502,677  | 8,539,983       |

The difference between the amount of the disposals during the period (EUR 96,878 thousand) and the amount of the divestments shown in the consolidated cash flow statement (EUR 96,749 thousand) is mainly due to the capital losses realised on these divestments for an amount of EUR -129 thousand. In addition, the capital gains and losses realised (EUR -129 thousand) combined with the changes in unrealised capital gains and losses (EUR -250 thousand) form the net result of the investment portfolio (see point 3.10 below).

| in thousand EUR                                |                        |                                                        |            |         |           |
|------------------------------------------------|------------------------|--------------------------------------------------------|------------|---------|-----------|
|                                                | BOOK VALUE             |                                                        | FAIR VALUE |         |           |
|                                                | TOTAL AT<br>30/06/2023 | IFRS 9<br>CLASSIFICATION                               | LEVEL 1    | LEVEL 2 | LEVEL 3   |
| Investment portfolio                           | 8,502,677              |                                                        | 428,383    | 0       | 8,074,294 |
| Investments                                    | 8,501,263              | Fair value through<br>profit and loss                  | 428,383    | 0       | 8,072,880 |
| Receivables                                    | 1,414                  | Designated at fair<br>value through<br>profit or loss  | 0          | 0       | 1,414     |
| Receivables from subsidiaries 47               | 740,896                | Designated at fair<br>value through<br>profit and loss | 0          | 740,896 | 0         |
| Deposits and other current financial<br>assets | 597,249                |                                                        | 0          | 597,249 | 0         |
| Deposits                                       | 0                      | Designated at fair<br>value through<br>profit and loss | 0          | 0       | 0         |
| Current financial investments                  | 587,130                | Fair value through<br>profit and loss                  | 0          | 587,130 | 0         |
| Other receivables                              | 10,119                 | Designated at fair<br>value through<br>profit and loss | 0          | 10,119  | 0         |
| Cash and cash equivalents                      | 95,648                 | Designated at fair<br>value through<br>profit and loss | 0          | 95,648  | 0         |
| Non-current financial liabilities              | 695,894                | At amortised cost                                      | 0          | 695,894 | 0         |
| Current financial liabilities                  | 5,370                  | At amortised cost                                      | 0          | 5,370   | 0         |
| Other current receivables                      | 97                     | At amortised cost                                      | 0          | 97      | 0         |
| Payables to subsidiaries 47                    | 25,026                 | Designated at fair<br>value through<br>profit and loss | 0          | 25,026  | 0         |
| Trade and other current payables               | 3,462                  | At amortised cost                                      | 0          | 3,462   | 0         |

<sup>47.</sup> Receivables from and payables to subsidiaries are designated at fair value but as they are very short-term receivables and payables, there is no change in fair value to record.

| in thousand EUR                                |                        |                                                        |            |         |           |
|------------------------------------------------|------------------------|--------------------------------------------------------|------------|---------|-----------|
|                                                | BOOK VALUE             |                                                        | FAIR VALUE |         |           |
|                                                | TOTAL AT<br>31/12/2022 | IFRS 9<br>CLASSIFICATION                               | LEVEL 1    | LEVEL 2 | LEVEL 3   |
| Investment portfolio                           | 8,539,983              |                                                        | 389,095    | 0       | 8,150,888 |
| Investments                                    | 8,538,603              | Fair value through<br>profit and loss                  | 389,095    | 0       | 8,149,508 |
| Receivables                                    | 1,380                  | Designated at fair<br>value through profit<br>or loss  | 0          | 0       | 1,380     |
| Receivables from subsidiaries 48               | 823,998                | Designated at fair<br>value through profit<br>and loss | 0          | 823,998 | 0         |
| Deposits and other current financial<br>assets | 436,686                |                                                        | 0          | 436,686 | 0         |
| Deposits                                       | 0                      | Designated at fair<br>value through profit<br>and loss | 0          | 0       | 0         |
| Current financial investments                  | 433,436                | Fair value through<br>profit and loss                  | 0          | 433,436 | 0         |
| Other receivables                              | 3,250                  | Designated at fair<br>value through profit<br>and loss | 0          | 3,250   | 0         |
| Cash and cash equivalents                      | 385,486                | Designated at fair<br>value through profit<br>and loss | 0          | 385,486 | 0         |
| Non-current financial liabilities              | 695,507                | At amortised cost                                      | 0          | 695,507 | 0         |
| Current financial liabilities                  | 2,010                  | At amortised cost                                      | 0          | 2,010   | 0         |
| Other current receivables                      | 97                     | At amortised cost                                      | 0          | 97      | 0         |
| Payables to subsidiaries 48                    | 175,634                | Designated at fair<br>value through profit<br>and loss | 0          | 175,634 | 0         |
| Trade and other current payables               | 9,037                  | At amortised cost                                      | 0          | 9,037   | 0         |

# **The fair value of the items of the investment portfolio can be prioritised as follows:**

Assets valued under level 1 are valued at the stock market price at the balance sheet closing date. Level 2 data are data on the assets or liabilities other than listed prices included in level 1 data which are observable either directly or indirectly. Level 3 data are unobservable data on the assets or liabilities.

Direct shareholdings in investment subsidiaries are considered to be level 3 and are valued based on the fair value of their own portfolio (level 1, 2 or 3) and the fair value of their other assets and liabilities. A detailed description of the valuation methods and the sensitivity of the fair value is given in points 2.3 and 2.4 above. The portfolio held in transparency is described under point 2.2 above.

### **The fair value of the other financial instruments has been determined using the following methods:**

- for short-term financial instruments, such as trade receivables and payables, the fair value is considered not to be significantly different from the carrying amount at amortised cost;
- for variable-rate loans and borrowings, such as deposits or receivables from or payables to subsidiaries, the fair value is considered not to be significantly different from the carrying amount at amortised cost;
- for foreign exchange rate or interest rate derivatives, fair value is determined based on models that discount future cash flows based on future interest rate curves or foreign exchange rates or other forward prices.

<sup>48.</sup> Receivables from and payables to subsidiaries are designated at fair value but as they are very short-term receivables and payables, there is no change in fair value to record.

# **Financial risks**

A description of the financial risks can be found in point 2.5 above.

### **Details of movements for financial investments recognised at fair value in level 3**

| in thousand EUR                                 |            |            |
|-------------------------------------------------|------------|------------|
|                                                 | 30/06/2023 | 31/12/2022 |
| Investment portfolio                            |            |            |
| Net value at the beginning of the period        | 8,150,888  | 9,881,560  |
| Acquisitions during the period                  | 59,855     | 46,868     |
| Disposals during the period                     | -96,878    | -13,774    |
| Changes in unrealised gains in profit and loss  | 172,407    | 95,778     |
| Changes in unrealised losses in profit and loss | -211,945   | -1,859,544 |
| Changes in accrued interest not yet due         | -33        | 0          |
| Transfer to level 3                             | 0          | 0          |
| Transfer from level 3                           | 0          | 0          |
| Net value at the end of the period              | 8,074,294  | 8,150,888  |

|                                             |            | in thousand EUR |
|---------------------------------------------|------------|-----------------|
|                                             | 30/06/2023 | 31/12/2022      |
| Deposits 49                                 | 0          | 0               |
| Current financial investments               | 587,130    | 433,436         |
| Other receivables                           | 10,119     | 3,250           |
| Deposits and other current financial assets | 597,249    | 436,686         |

Current financial assets are measured at fair value through profit and loss.

|                                     |            | in thousand EUR |
|-------------------------------------|------------|-----------------|
|                                     | 30/06/2023 | 31/12/2022      |
| Bank and cash                       | 75,644     | 140,304         |
| Short-term investments and deposits | 20,004     | 245,182         |
| Cash and cash equivalents           | 95,648     | 385,486         |

Cash and cash equivalents consist of bank balances, cash on hand and investments in money market instruments with a maximum term of three months.

|                           |                     |                      |                     | in thousand EUR           |
|---------------------------|---------------------|----------------------|---------------------|---------------------------|
|                           | SHARE CAPITAL       |                      | TREASURY SHARES     |                           |
|                           | NUMBER OF<br>SHARES | AMOUNT OF<br>CAPITAL | NUMBER OF<br>SHARES | AMOUNT OF<br>CAPITAL HELD |
| Balances as at 31/12/2021 | 34,250,000          | 79,735               | 642,928             | 1,497                     |
| Changes during the year   | 0                   | 0                    | 275,000             | 640                       |
| Balances as at 31/12/2022 | 34,250,000          | 79,735               | 917,928             | 2,137                     |
| Changes during the period | 0                   | 0                    | 41,500              | 97                        |
| Balances as at 30/06/2023 | 34,250,000          | 79,735               | 959,428             | 2,234                     |

<sup>49.</sup> Deposits between three months and one year.

The subscribed and fully paid-up capital consists of ordinary shares without nominal value. The owners of ordinary shares are entitled to receive dividends and are entitled to one vote per share at the Company's general meetings of shareholders.

The gross dividend for the financial year 2022, paid in 2023, was EUR 3.24 per share, i.e. a gross amount of EUR 108,023 <sup>50</sup> thousand. The difference between this amount and the amount shown in the consolidated cash flow statement (EUR -108,027 thousand) corresponds to coupons from dividends prior to 2022 but paid in 2023.

As at 30 June 2022, Sofina SA held 959,428 own shares, compared with 917,928 own shares held as at 31 December 2022. During the first half of 2023, 50,000 own shares were acquired, and 8,500 own shares were disposed of.

|                             |            | in thousand EUR |
|-----------------------------|------------|-----------------|
|                             | 30/06/2023 | 31/12/2022      |
| Bonds issued                | 695,894    | 695,507         |
| Non-current financial debts | 695,894    | 695,507         |

The non-current financial liabilities result from a bond issuance amounting to EUR 700,000 thousand, maturing in 2028. The bonds bear an annual interest rate of 1% payable annually on the coupon due date.

|                                                         |            | in thousand EUR |
|---------------------------------------------------------|------------|-----------------|
|                                                         | 30/06/2023 | 31/12/2022      |
| Bank loans                                              | 0          | 0               |
| Payables to subsidiaries                                | 25,026     | 175,634         |
| Trade payables                                          | 1,595      | 1,373           |
| Wage and social security payables                       | 732        | 5,328           |
| Current financial liabilities 51                        | 5,370      | 2,010           |
| Other miscellaneous liabilities                         | 204        | 687             |
| Dividends relating to previous years                    | 871        | 875             |
| Miscellaneous taxes                                     | 60         | 774             |
| Financial liabilities, trade and other current payables | 33,858     | 186,681         |

|                                               |            | in thousand EUR |
|-----------------------------------------------|------------|-----------------|
|                                               | 30/06/2023 | 31/12/2022      |
| Receivables from subsidiaries 52              | 740,896    | 823,998         |
| Payables to subsidiaries 53                   | -25,026    | -175,634        |
| Receivables from and payables to subsidiaries | 715,870    | 648,364         |

Sofina SA has signed revolving credit facilities agreements with commitment with several of its subsidiaries. The loans thereby granted by Sofina SA to these subsidiaries bear interest at Euribor +3 months plus a margin.

With regard to its payables (deposits made by subsidiaries), Sofina SA remunerates them at a deposit rate that is reviewed regularly.

<sup>50.</sup> In accordance with Article 7:217, §3 of the Belgian Companies and Associations Code, the gross dividend amount presented in the Annual report 2022 has been adjusted to exclude the treasury shares held by Sofina on 11 May 2023 at 11.59 pm Belgian time (i.e., the trading date before ex. Date). The final gross dividend published in the statutory financial statements amounts to EUR 108 million.

<sup>51.</sup> Composed of accrued interest related to the bonds (see point 3.6 above).

<sup>52.</sup> The amount for the first semester of 2023 consists mainly of revolving credit facilities contracts and trade receivables from subsidiaries for an amount of EUR 56 thousand.

<sup>53.</sup> The amount for the first semester of 2023 consists mainly of a deposit made by a subsidiary, and trade payables to subsidiaries for an amount of EUR 26 thousand.

|                                              |                       | in thousand EUR       |
|----------------------------------------------|-----------------------|-----------------------|
|                                              | 1<br>ST SEMESTER 2023 | 1<br>ST SEMESTER 2022 |
| Interest on non-current assets               | 33                    | 1                     |
| Interest on receivables from subsidiaries 54 | 12,126                | 2822                  |
| Interest on current assets                   | 2,143                 | 9                     |
| Interest on payables to subsidiaries         | 0                     | 0                     |
| Interest to banks                            | 0                     | -230                  |
| Interest on other liabilities 55             | -3,858                | -3,858                |
| Interest income and expenses                 | 10,444                | -1,256                |

Realised capital losses come from a divestment from a holding active in the field of dental implants.

Unrealised capital gains mainly come from our subsidiaries Sofina Capital, Sofina US, the increase in the share price of Colruyt and GL events, and from other investments active in personal hygiene products, biological crop protection and data management.

Unrealised capital losses are mainly due to investments active in online education and the rental of refrigerated vehicles.

|                                        |                       | in thousand EUR       |
|----------------------------------------|-----------------------|-----------------------|
|                                        | ST SEMESTER 2023<br>1 | ST SEMESTER 2022<br>1 |
| Investments                            |                       |                       |
| Results due to sales                   | -129                  | 20                    |
| Realised capital gains                 | 0                     | 20                    |
| Realised capital losses                | -129                  | 0                     |
| Results not due to sales               | -250                  | -1,315,111            |
| Unrealised capital gains               | 218,967               | 72,785                |
| Unrealised capital losses              | -219,217              | -1,387,896            |
| Total investments                      | -379                  | -1,315,091            |
|                                        |                       |                       |
| Receivables                            |                       |                       |
| Results due to sales                   | 0                     | 0                     |
| Realised capital gains                 | 0                     | 0                     |
| Realised capital losses                | 0                     | 0                     |
| Results not due to sales               | 0                     | 0                     |
| Unrealised capital gains               | 0                     | 0                     |
| Unrealised capital losses              | 0                     | 0                     |
| Total receivables                      | 0                     | 0                     |
| Net result of the investment portfolio | -379                  | -1,315,091            |

|                                 |                       | in thousand EUR       |
|---------------------------------|-----------------------|-----------------------|
|                                 | 1<br>ST SEMESTER 2023 | 1<br>ST SEMESTER 2022 |
| Foreign exchange results        | 959                   | 300                   |
| Results on other current assets | 8,377                 | -8,363                |
| Other financial results         | 9,336                 | -8,063                |

54. For details, see point 3.8 above.

<sup>55.</sup> Composed of accrued interest related to the bonds (see point 3.6 above).

|                                                    | in thousand EUR       |                       |  |
|----------------------------------------------------|-----------------------|-----------------------|--|
|                                                    | 1<br>ST SEMESTER 2023 | 1<br>ST SEMESTER 2022 |  |
| Other financial expenses                           | -1,053                | -1,000                |  |
| Services and other goods                           | -8,013                | -6,924                |  |
| Remuneration, social security charges and pensions | -6,958                | -12,422               |  |
| Miscellaneous                                      | -1,964                | -4,761                |  |
| Other expenses                                     | -17,988               | -25,107               |  |

Services and other goods mainly comprise consultancy services received and remuneration of the Directors.

|                                                        |     |                     |           | in thousand EUR     |           |
|--------------------------------------------------------|-----|---------------------|-----------|---------------------|-----------|
|                                                        |     | 30/06/2023          |           | 31/12/2022          |           |
|                                                        |     | FOREIGN<br>CURRENCY | EUR       | FOREIGN<br>CURRENCY | EUR       |
|                                                        | EUR |                     | 126,929   |                     | 91,499    |
| Investment portfolio,                                  | CAD | 177                 | 122       | 329                 | 132       |
| uncalled committed<br>amounts 56                       | USD | 1,291,267           | 1,188,355 | 1,014,168           | 1,233,635 |
|                                                        | GBP | 17,729              | 20,658    | 8,159               | 17,250    |
|                                                        |     |                     | 1,336,064 |                     | 1,342,516 |
| Obtained credit lines                                  |     |                     | 1,125,000 |                     | 925,000   |
| Used amount                                            |     |                     | 0         |                     | 0         |
| Unused amount                                          |     |                     | 1,125,000 |                     | 925,000   |
| Credit lines granted to the<br>investment subsidiaries |     |                     | 765,000   |                     | 765,000   |
| Used amount                                            |     |                     | 338,532   |                     | 420,537   |
| Unused amount                                          |     |                     | 426,468   |                     | 344,463   |

|                                                                |                       | in thousand EUR       |
|----------------------------------------------------------------|-----------------------|-----------------------|
| Assets and liabilities                                         | 30/06/2023            | 31/12/2022            |
| Long-term receivables from non-consolidated related companies  | 0                     | 0                     |
| Short-term receivables from non-consolidated related companies | 740,896               | 823,998               |
| Payables to non-consolidated related companies                 | -25,026               | -175,634              |
|                                                                |                       |                       |
| Results from related party transactions                        | 1<br>ST SEMESTER 2023 | 1<br>ST SEMESTER 2022 |
| Dividends received from non-consolidated related companies     |                       |                       |
|                                                                | 0                     | 0                     |
| Dividends received from associated companies                   | 8,686                 | 6,621                 |
| Interest received from non-consolidated related companies      | 12,126                | 2,822                 |
| Interest paid to non-consolidated related companies            | 0                     | 0                     |
| Services provided to non-consolidated related companies        | 818                   | 3,094                 |

The receivables from and payables to non-consolidated related companies consist mainly of loans and deposits between Sofina and its subsidiaries. Their remuneration methods are detailed in point 3.8 above.

The services provided mainly include investment services and investment advisory services relating to investment opportunities and investments held by the service recipient.

<sup>56.</sup> These amounts come mainly from subscriptions to investments of Sofina Private Funds for an amount of EUR 1,290 million (see point 2.6 of this Half-year financial report). These commitments are subscribed by Sofina SA or by its investment subsidiaries (seen in transparency).

The services received consist mainly of cash management services.

Sofina is the guarantor of the commitments of its non-consolidated related companies (i.e. its subsidiaries).

Events after the end of the financial mid-year are included in the section Key events, which forms an integral part of the interim Management report.

| NAME AND HEADQUARTERS                                                                        |          | CORPORATE RIGHTS HELD  |                                       |                        | CORPORATE RIGHTS HELD                 |
|----------------------------------------------------------------------------------------------|----------|------------------------|---------------------------------------|------------------------|---------------------------------------|
|                                                                                              | LINK     | NUMBER<br>OF<br>SHARES | %<br>OWNERSHIP<br>AS AT<br>30/06/2023 | NUMBER<br>OF<br>SHARES | %<br>OWNERSHIP<br>AS AT<br>31/12/2022 |
| A. INVESTMENT SUBSIDIARIES - AT FAIR VALUE                                                   |          |                        |                                       |                        |                                       |
| Sofina Ventures SA<br>29, rue de l'Industrie - 1040 Bruxelles<br>Company number 0423 386 786 | Indirect | 11,709                 | 100                                   | 11,709                 | 100                                   |
| Sofina Capital SA<br>12, rue Léon Laval - LU-3372 Leudelange                                 | Direct   | 5,872,576              | 100                                   | 5,872,576              | 100                                   |
| Sofina Partners SA<br>12, rue Léon Laval - LU-3372 Leudelange                                | Indirect | 46,668,777             | 100                                   | 46,668,777             | 100                                   |
| Sofina Private Equity SA SICAR<br>12, rue Léon Laval - LU-3372 Leudelange                    | Indirect | 5,910,000              | 100                                   | 5,910,000              | 100                                   |
| Sofina Global SA SIF<br>12, rue Léon Laval - LU-3372 Leudelange                              | Indirect | 17,500,000             | 100                                   | 17,500,000             | 100                                   |
| Global Education Holding SA<br>12, rue Léon Laval - LU-3372 Leudelange                       | Indirect | 277,262                | 82.01                                 | 277,262                | 82.01                                 |
| Global Beauty Holding SA<br>12, rue Léon Laval - LU-3372 Leudelange                          | Indirect | 300,000                | 100                                   | 300,000                | 100                                   |
| Sofina US, LLC<br>160 Federal Street, 9th floor - MA 02110<br>Boston - USA                   | Direct   | 802,000                | 100                                   | 802,000                | 100                                   |
| Sofina Asia Private Ltd.<br>108 Amoy Street # 03-01 - SG-069928<br>Singapore                 | Indirect | 375,000                | 100                                   | 375,000                | 100                                   |
|                                                                                              |          |                        |                                       |                        |                                       |
| B. ASSOCIATED COMPANIES – AT FAIR VALUE                                                      |          |                        |                                       |                        |                                       |
| Groupe Petit Forestier<br>11, route de Tremblay - 93420 Villepinte -<br>France               | Direct   | 1,244,172              | 42.82                                 | 1,244,172              | 43.39                                 |
| Biotech Dental<br>305, Allées de Craponne - 13300 Salon-<br>de-Provence - France             | Direct   | 0                      | 0.00                                  | 6,154,900              | 24.75                                 |
| Cambridge Associates<br>125 High Street - MA 02110 Boston - USA                              | Indirect | 24,242                 | 23.64                                 | 24,242                 | 23.64                                 |
| Drylock Technologies<br>Spinnerijstraat 12- 9240 Zele<br>Company number 0479 766 057         | Direct   | 169,782,750            | 25.00                                 | 150,000,00<br>0        | 25.64                                 |
| emTransit BV (Dott)<br>Bugerweeshuispad 101 - 1076ER<br>Amsterdam - Netherlands              | Indirect | 10,143,368             | 20.25                                 | 8,612,248              | 17.51                                 |
| Polygone<br>59, Quai Rambaud - 69002 Lyon - France                                           | Direct   | 221,076                | 20.96                                 | 221,076                | 20.96                                 |
| Nuxe International<br>127, rue d'Aguesseau - 92100 Boulogne-<br>Billancourt - France         | Indirect | 193,261,167            | 49.00                                 | 193,261,167            | 49.00                                 |

Considering Sofina's compliance with the conditions set forth in Article 70 of the Luxembourg law of 19 December 2002, Luxembourg subsidiaries (except Sofina Private Equity SA SICAR and Sofina Global SA SIF) may be exempted from certain provisions relating to the publication of their statutory annual accounts.

The following new standards and interpretations became effective in 2023:

- IFRS 17 Insurance Contracts (applicable for the annual period beginning on or after 1st January 2023);
- Amendments to IFRS 17 Insurance contracts: Initial Application of IFRS 17 and IFRS 9 Comparative Information (applicable for the annual period beginning on or after 1st January 2023);
- Amendments to IAS 1 Presentation of Financial Statements and IFRS Practice Statement 2: Disclosure of Accounting Policies (applicable for the annual period beginning on or after 1st January 2023);
- Amendments to IAS 8 Accounting policies, Changes in Accounting Estimates and Errors: Definition of Accounting Estimates (applicable for annual periods beginning on or after 1st January 2023);
- Amendments to IAS 12 Income Taxes: Deferred Tax related to Assets and Liabilities arising from a Single Transaction (applicable for annual periods beginning on or after 1st January 2023); and
- Amendments to IAS 12 Income taxes: International Tax Reform Pillar Two Model Rules (effective immediately but not yet endorsed in the EU – disclosures are required for annual periods beginning on or after 1st January 2023).

The application of these standards and interpretations does however not have any material impact on the financial statements of Sofina.

Sofina has not anticipated the application of the new and amended standards and interpretations not yet applicable for the annual period beginning on or after 1st January 2023:

- Amendments to IAS 1 Presentation of Financial Statements: Classification of Liabilities as Current or Non-current and Non-current Liabilities with Covenants (applicable for annual periods beginning on or after 1st January 2024, but not yet endorsed in the European Union);
- Amendments to IFRS 16 Leases: Lease Liability in a Sale and Leaseback (applicable for annual periods beginning on or after 1st January 2024, but not yet endorsed in the European Union); and
- Amendments to IAS 7 Statement of Cash Flows and IFRS 7 Financial Instruments: Disclosures: Supplier Finance Arrangements (applicable for annual periods beginning on or after 1st January 2024, but not yet endorsed in the European Union).

The future application of these new standards and interpretations is not expected to have a significant impact on the consolidated financial statements.

### **Basis of evaluation**

The IFRS consolidated financial statements are prepared on the basis of fair value through profit and loss except for trade and employee receivables and payables, which are measured at amortised cost.

In order to reflect the significance of the data used in fair value measurements, the Sofina group classifies these measurements into a hierarchy consisting of the following levels:

- **Level 1:** listed prices (unadjusted) in active markets for identical assets or liabilities;
- **Level 2:** data other than listed prices included in level 1 that are observable for the asset or liability, either directly (i.e. as prices) or indirectly (i.e. derived from prices);
- **Level 3:** data for the asset or liability that are not based on observable market data (unobservable data).

### **Consolidation principles**

In accordance with its status as an Investment Entity, Sofina does not consolidate its subsidiaries and does not apply IFRS 3 when it acquires control of another entity.

An exception to this is made for subsidiaries that only provide services related to Sofina's investment activities. These subsidiaries are fully consolidated.

Investments in other subsidiaries, which do not exclusively provide services related to Sofina's investment activities, are also measured at fair value through profit and loss in accordance with IFRS 9.

Investments in which Sofina exercises significant influence are also measured at fair value through profit and loss in accordance with IAS 28, §18 and IFRS 9.

The list of subsidiaries and associated companies is presented above under point 3.16. This list does not include companies in which Sofina holds more than 20% of the capital without exercising significant influence, because, for example, it has neither representation mandate on the board of directors nor veto rights (other than the usual protective rights, for reorganisations, capital increases, etc.).

### **Transactions in foreign currencies**

Transactions in foreign currencies are accounted for at the exchange rate in force on the date of the transaction.

The impact of foreign exchange is recognised in the income statement under Other financial income and expenses.

Monetary assets and liabilities denominated in foreign currencies are translated at closing rates. Exchange differences arising from these transactions, as well as exchange differences arising from the translation of monetary assets and liabilities denominated in foreign currencies, are recognised in the income statement. Nonmonetary assets and liabilities denominated in foreign currencies are translated at the exchange rate in force on the transaction date.

The financial statements of foreign companies included in the consolidation are translated into euro at the closing rate for balance sheet accounts and at the average exchange rate for the year for income statement accounts. The difference resulting from the use of these two different rates is recorded in the consolidated balance sheet under Reserves.

### **Main foreign exchange rates**

|              | 30/06/2023 | 31/12/2022 |
|--------------|------------|------------|
| Closing rate | 1 EUR =    | 1 EUR =    |
| USD          | 1.0866     | 1.0666     |
| GBP          | 0.8583     | 0.8869     |
| CHF          | 0.9788     | 0.9847     |
| SGD          | 1.4732     | 1.4300     |
| CAD          | 1.4415     | 1.4440     |
| INR          | 89.2065    | 88.1710    |

### **(In)tangible fixed assets**

(In)tangible fixed assets are recorded on the assets side of the balance sheet at their acquisition or production cost, less accumulated depreciation and any impairment losses. (In)tangible fixed assets are depreciated over their estimated useful life using the straight-line method.

- Buildings: 30 years
- Equipment and furniture: 3 to 10 years
- Rolling stock: 5 years
- Licenses: 5 years

### **Investments and receivables**

Investments at fair value are recorded at the transaction date and are measured at fair value.

Equity investments at fair value consist of securities that are acquired with the aim of obtaining returns in the form of capital gains and/or investment income. They are measured at fair value at each balance sheet date. Unrealised gains and losses are recognised directly in the income statement. In the event of disposal, the difference between the net sale proceeds and the carrying amount is charged or credited to the income statement.

### **Deposits and other current financial assets**

Trade receivables are measured at amortised cost. IFRS 9 requires the recognition of credit losses on all debt instruments, loans and trade receivables on the basis of their useful life. This impairment model under IFRS 9 is based on the anticipation of losses and does not have a significant impact on the measurement of impairment of financial assets.

Deposits are designated at fair value through the income statement.

Receivables from subsidiaries are designated at fair value through the income statement.

Cash and cash equivalents comprise cash and term deposits with a maturity of less than three months.

### **Treasury shares**

Purchases and sales of treasury shares are deducted from and added to equity respectively. Changes during the period are explained in the statement of changes in equity. No result is recorded on these changes.

### **Employee benefits**

The Sofina group's employees benefit from "defined benefit", "defined contribution" and "cash balance" pension plans. These pension plans are financed by contributions from Sofina group companies and subsidiaries employing staff and by contributions from the staff.

For pension plans, the cost of pension obligations is deter- mined using the "Projected Unit Credit" actuarial method for "defined benefit" plans and the "Traditional Unit Credit" method for "defined contribution" and "cash balance" plans in accordance with the principles of IAS 19. The present value of the promised benefits is calculated. This calculated present value is then compared with the existing funding and, if necessary, generates an accounting provision. The costs established by the actuaries are themselves compared with the premiums or contributions paid by the employer to the funding organisation and, if necessary, generate an additional expense in the consolidated income statement.

The amount recognised in the balance sheet corresponds to the present value of the pension obligations less the fair value of pension plan assets, in accordance with the principles of IAS 19. Actuarial differences, differences between the actual return on assets and the normative return on assets, as well as the effect of the asset ceiling (excluding the interest effect) are recognised in full in equity, without subsequent reclassification to the income statement.

Incentive plans granted are accounted for in accordance with IFRS 2. Under this standard, the fair value of the options at the grant date is recognised in the income statement over the vesting period. Options are valued using a generally accepted valuation model based on market conditions prevailing at the time of granting.

### **Financial liabilities**

Derivative financial instruments are initially recorded at fair value and revalued at each balance sheet date. Changes in fair value are recognised in the income statement.

Trade payables, loans and bank overdrafts are initially measured at fair value less transaction costs directly attributable to their acquisition or issue and subsequently measured at amortised cost.

Payables to subsidiaries are designated at fair value through the income statement.

IFRS 16 - Leases: when a lease is entered into (unless it is a short-term lease or concerns a low-value asset), a liability is recognised for the related commitment, valued at amortised cost, and the related asset is recognised as property, plant and equipment.

### **Provisions**

A provision is recognised when a legal or constructive obligation exists at the balance sheet date as a result of a past event and it is probable that an outflow of resources will be required to settle the obligation, the amount of which can be reliably estimated.

### **Taxes**

Taxes include income taxes and deferred taxes. Deferred taxes are recognised in the income statement except when they relate to items that have been recognised directly in equity, in which case they are also recognised directly in this item.

Income taxes consist of taxes payable on taxable income for the year, together with any adjustments relating to previous years.

Deferred taxes consist of income taxes payable or recoverable in future years in respect of temporary differences between the carrying amount of assets and liabilities and their tax base and in respect of unused tax loss carry forwards.

Deferred tax is not recognised on temporary differences arising from goodwill that is not deductible for tax purposes, from the initial recognition of assets or liabilities in a transaction that is not a business combination and affects neither accounting nor taxable profit at the time of the transaction, or from investments in subsidiaries, provided it is probable that the temporary difference will not be reversed in the foreseeable future.

Deferred taxes on unused tax losses are recognised only to the extent that taxable profits are likely to be realised, thereby enabling the losses to be utilised.

Taxes are calculated at the tax rates that have been enacted.

### **Income and expenses**

Income and expenses are recognised as follows:

- The gross amounts of dividends are recognised in the income statement at the date of allocation;
- Interest income is recognised when earned;
- Interest expense is recorded as incurred;
- Gains and losses on non-current assets and gains and losses on current assets are recognised at the date of the transaction that generated them;
- Other income and expenses are recognised at the time of the transaction;
- Sofina SA provides investment management services to non-consolidated subsidiaries. Each resulting service obligation is covered by a service contract and the related revenue is recognised as the service obligation is fulfilled (over the term of the contract). Services provided by non-consolidated subsidiaries to Sofina SA are treated in the same way;
- The gross amount of income and capital gains of non-consolidated foreign investments are recognised in the income statement.

### **Significant accounting judgments and sources of uncertainty in accounting estimates**

The main accounting estimates relate to the valuation of the investment portfolio: the significant assumptions and judgments are discussed in the notes on the fair value of the portfolio under point 2.4 above.

The significant judgments made by Sofina in determining its status as an Investment Entity relate to the assessment of the existence of a divestment strategy on portfolio investments, as well as the assessment of this divestment strategy on investments held by subsidiaries rather than on direct investments in these subsidiaries.

**Statutory auditor's report to the board of directors of Sofina SA on the review of the interim condensed consolidated financial statements as at 30 June 2023 and for the six-month period then ended**

### **Introduction**

We have reviewed the accompanying consolidated balance sheet of Sofina SA as at 30 June 2023, the consolidated income statement, statement of comprehensive income, changes in consolidated shareholders 'equity and consolidated cash flow statement for the six-month period then ended, and notes ("the interim condensed consolidated financial statements"). The board of directors is responsible for the preparation and presentation of this condensed consolidated interim financial information in accordance with IAS 34, "Interim Financial Reporting" as adopted by the European Union. Our responsibility is to express a conclusion on this condensed consolidated interim financial information based on our review.

### **Scope of Review**

We conducted our review in accordance with the International Standard on Review Engagements 2410, "Review of Interim Financial Information Performed by the Independent Auditor of the Entity". A review of interim financial information consists of making inquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with International Standards on Auditing and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.

### **Conclusion**

Based on our review, nothing has come to our attention that causes us to believe that the accompanying interim condensed consolidated financial statements as at 30 June 2023 and for the six-month period then ended is not prepared, in all material respects, in accordance with IAS 34, "Interim Financial Reporting" as adopted by the European Union.

Brussels, 5 September 2023

EY Réviseurs d'Entreprises SRL Statutory auditor represented by

Jean-François Hubin Partner \*Acting on behalf of an SRL

24JFH0016

• **Average annual return:** Average annual growth rate calculated on the basis of the change in equity per share (NAVPS) during the reporting period from 1st July to 30 June, taking into account the gross dividend(s) per share of Sofina. It is expressed on an annualised basis. As an example, the average annual return over one year is calculated as follows and is based on the "XIRR" formula in Excel:

| PERIOD | NAVPS<br>(T-1) | GROSS<br>DIVIDEND<br>PAID<br>(IN EUR) | NAVPS<br>(T) | PERFOR<br>MANCE<br>(IN %) |
|--------|----------------|---------------------------------------|--------------|---------------------------|
| 2023   | 294.95         | 3.24                                  | 276.79       | -5.1%                     |

It should be noted that the comparison of Sofina's average annual return against a benchmark index is made on the basis of identical periods. Since 2016, the Company measured its long-term performance by comparing the evolution of its equity per share against a benchmark, the MSCI ACWI Net Total Return EUR Index. Sofina's NAVPS is used instead of its share price in order to better reflect management performance and to better align with LTIP concepts.

- **Cash – Non-cash:** Defines whether a portfolio transaction generated a cash inflow or outflow (Cash) or not (Non-cash).
- **Company:** Sofina SA.
- **ESG:** Refers to Environmental, Social and Governance factors, as set out in Sofina's Responsible Investment Policy.
- **Euro Stoxx 50 Net Return Index EUR ("EUR Stoxx 50"):** Ticker used by Bloomberg (SX5T Index). This index is also presented because of its wide use in the financial markets.
- **General Partners ("GPs" or "Managers"):** Specialised teams managing investment funds in unlisted companies, focusing on venture and growth capital funds.
- **Gross cash:** Net cash plus financial liabilities, in transparency.
- **Investment Entity:** Status adopted by Sofina SA since 1st January 2018 in application of IFRS 10, §27, which provides that, as long as it meets the definition of an Investment Entity, a company does not consolidate its subsidiaries (except for subsidiaries exclusively providing services related to investment activities). Direct subsidiaries are recorded at fair value in the consolidated financial statements, including the fair value of their equity investments and other assets and liabilities (mainly intra-group payables and receivables).

The direct subsidiaries of Sofina SA are stated at fair value through profit and loss in accordance with IFRS 9.

As required by IFRS 10, §B101, Sofina applied this accounting treatment as of 1st January 2018, when it met all the criteria of an Investment Entity. Indeed, Sofina has determined that it is an Investment Entity within the meaning of IFRS 10 because it meets the three criteria set by the standard. In fact, Sofina:

- <sup>−</sup> uses the funds of its investors (who are shareholders of the listed company) to provide them with investment management services;
- <sup>−</sup> makes investments with the aim of obtaining returns in the form of capital gains and/or investment income;
- <sup>−</sup> monitors the performance of its investments by measuring them at fair value.

In addition, Sofina has all the typical characteristics of an Investment Entity as defined by IFRS 10:

- <sup>−</sup> it has more than one investment;
- <sup>−</sup> it has more than one investor;
- <sup>−</sup> it has investors who are not related parties;
- <sup>−</sup> it has ownership rights in the form of equity securities or similar interests.

As mentioned above, Sofina SA does not consolidate its subsidiaries (IFRS 10, §27).

- **Listed:** Level 1 and 2 investments as per the fair value hierarchy defined in point 2.3 of the Notes to the interim condensed consolidated financial statements.
- **Loan-to-value (%):** Ratio between (i) Net debt (or if negative, corresponds to Net cash) and (ii) the total value of the portfolio in transparency.
- **LTIP:** Long-term incentive plan organised within Sofina.
- **MSCI ACWI Net Total Return EUR Index ("MSCI ACWI"):** Ticker used by Bloomberg (NDEEWNR Index). This index is the benchmark used by Sofina. This benchmark is considered the most appropriate because of (i) Sofina's global investment strategy (which called for a reference to a World Index ("**WI**") for developed markets) and (ii) the Sofina group's investments in Asia and the rest of the world (which justified the choice of the All Countries ("**AC**") index for emerging markets). The Company's essentially European shareholder base and its listing on Euronext Brussels ultimately guided the choice of the euro-denominated index.
- **Net Asset Value ("NAV"):** Net assets or shareholder's equity. NAV per share ("**NAVPS**") corresponds to the net assets per share or equity per share (calculation based on the number of outstanding shares at the end of the period). As a reminder, since 1st January 2018, Sofina has

adopted the status of Investment Entity according to IFRS 10. Since then, its equity, or NAV in the context of this Half-year financial report, corresponds to the fair value of its investments as well as of its direct subsidiaries and their investments and other assets and liabilities.

- **Net cash (or Net debt if negative):** Sum, in transparency, of "Cash and cash equivalents", "Deposits" and "Cash investments", less "Financial debts" of current and non-current liabilities. "Receivables from subsidiaries" and "Payables to subsidiaries" are not included in Net cash. The term is used in the key management information (see point 2.1. of the Notes to the interim condensed consolidated financial statements).
- **Other assets and liabilities:** Sum of "Deferred taxes" (on the assets side), "Other current financial assets", "Receivables from subsidiaries", "Other current debtors" and "Taxes" (on the assets side), less "Non-current provisions", "Noncurrent financial liabilities", "Deferred taxes" (on the liabilities side), "Payables to subsidiaries", "Current trade and other payables" and "Taxes" (on the liabilities side). These are not shown as separate lines in the internal information used for the management of the Sofina group and have therefore been grouped together to reflect this information (see point 2.1 of the Notes to the interim condensed consolidated financial statements).
- **Portfolio in transparency:** Sofina SA manages its portfolio on the basis of the total investments held either directly or through investment subsidiaries. When preparing the financial statements as an Investment Entity, the fair value of its direct investments (in portfolio investments or in investment subsidiaries) is recognised as an asset in the balance sheet. By contrast, segment management information (based on internal reporting) is prepared on the entire portfolio in transparency (i.e. on all portfolio investments whether held by Sofina SA directly or indirectly through its investment subsidiaries), and thus on the basis of the total fair value of each investment ultimately held. The presentation of dividends or cash follows the same logic.
- **Shareholders' equity:** Net Asset Value (as defined herein).
- **Sofina Direct:** Denomination combining Longterm minority investments and Sofina Growth as a result of some of their similar features, as opposed to Sofina Private Funds.
- **Total Shareholder Return ("TSR"):** Average annual return (as defined above).
- **Unlisted:** Level 3 investments as per the fair value hierarchy defined in point 2.3 of the Notes to the interim condensed consolidated financial statements.