Half Year Report 2024

LUXEMBOURGISH INVESTMENT COMPANY

€ 2.3bn NAV

AS AT 30/06/2024

STRONG TRACK RECORD

~ 15% IRR

OVER PAST 30 YEARS

STRONG TEAM

~ 30

INVESTMENT AND CORPORATE PROFESSIONALS

DIRECT INVESTMENTS

25+ lines

IN EUROPE

STOCK LISTED, EVERGREEN

30+ years

OF EXISTENCE

STEADY DIVIDEND POLICY

2.9%

DIVIDEND YIELD 2024

LARGEST ASSET

32%

OF FOYER GROUP

INVESTMENT FUNDS

30

FUND MANAGERS

TOP CLASS, EUROPE & US

DEAR SHAREHOLDERS,

During the first half of 2024, the macroeconomic environment remained challenging with little growth in Euro- pean economies despite stabilization of inflation rates and first encouraging signals by the European Central Bank cutting interest rates in June for the first time since 2019. Stock markets have shown good performances in the first six months of the year but fears of a recession in the US combined with questions around the valuation of Artificial Intelligence companies have led to corrections at the beginning of the summer.

As indicated in our annual report in April, the economic slowdown, which started during the second half of last year, continues to put pressure on some of our "Industri- als and Technology" portfolio companies and hopes for a recovery are now postponed to 2025.

A WELL DIVERSIFIED AND

RESILIENT PORTFOLIO

Having said that, our portfolio is proving to be resilient: first, it is well diversified and exposed to sectors such as Financial services, Healthcare and BtB services which

benefit from positive trends; second, the majority of our Direct Investments portfolio companies have continued to perform well despite the difficult economic environment. Our second strategic pillar, Investment Funds, focusing on choosing the best growth and lower mid-cap buyout managers, already makes up a ¼ of our NAV and adds to the overall diversification of our portfolio.

When looking closer at our Direct Investments portfo- lio, which makes up 2/3 of our NAV, we note that we are exposed to Financial services for 41.8% (up from 36.4% six months ago), 20.8% to Industrials & Technology (down from 32%), 13.7% to Healthcare (up from 8,7%) and 14.7% to BtB services. The strong reduction in our Industrials segment, which is made of 12 lines, is mainly explained by the sale of ESG and to a lesser extend by the reduction of value of a few lines. We increased our exposure to Healthcare with a new investment and thanks to an overall good performance in the first half of the year of our portfolio companies in that segment. The high interest environment has been beneficial for insurance com- panies, as reflected in the Stoxx Europe 600 insurance index, which returned 11.9% over 6 months. The increase of our exposure to Financial Services has been largely driven by an excellent performance of Foyer.

STABLE NAV DESPITE HEADWINDS IN EUROPEAN ECONOMIES

Our NAV performance over the first half of the year has been stable (+0.7%) while our NAV as at 30 June 2024 stood at €2.3bn, slightly decreasing by 1.1% as we paid out our dividend in May.

After a strong investment activity in 2023 in Direct Investments, our focus over the last 10 months has been on portfolio management: on the one hand, supporting our new investments and on the other hand, following closely the lines that are most impacted by the difficult environment.

We keep saying that difficult times can also generate attractive investment opportunities. During Q2, we were able to close an exciting deal in the healthcare sector, strengthening our portfolio in the DACH and Benelux regions. We have been following the German listed company Medios since several years and were able to buy directly from the founder a significant stake of 14.9% and obtain a board seat at the AGM in August. The founder, who retired from day-to-day operations a few years ago, was looking for the "right" successor for his stake, while management was seeking the best possible institutional anchor shareholder to continue the successful development and internationalization of the group. In our eyes, this is a good example of a Luxempart deal: we have the

flexibility to structure a transaction that brings a tailor -made solution to an entrepreneur who, in this case, seeks the best possible owner to succeed him; we are able to invest into listed companies with small market capitalization which are not yet attractive enough for the large institutional capital providers; we partner with an ambitious management team, who made first major steps in their internationalization and diversification strategy, and who look for support from an active shareholder; our long-term and family backed investor profile allowed us to differentiate ourselves from main stream institutional investors and from private equity funds looking for take private opportunities.

In total, we deployed in the first semester €110m of capital of which €73.8m in Direct Investments and we had € 36.1m of capital calls in our Investment Funds portfolio.

Our objective in our Investment Funds portfolio is to take new commitments of about €100m per year of which a significant share in US managers. In the first semester, we took new commitments of €34.5m (all in the US), slightly below our budget, while distributions from our Investment Funds portfolio were very low, which reflects the general current slowdown in activity in private equity.

STRONG FINANCIAL LIQUIDITY POSITION

Following the closing of the sale of ESG, which generated cash proceeds of €138m, and dividend distributions from our portfolio companies of €37.2m in the first half of the year, our financial liquidities position stands at €183m, or at 8% of our total NAV as of 30 June 2024. Further- more, we completed our program of guaranteed credit lines with four reputable banks, which represent today €200m (fully undrawn).

This solid liquidity position will allow us in the coming years to seize attractive Direct Investments opportuni- ties, to fund our ambitious Investment Funds program and if needed to support some of our portfolio companies in case the difficult macroeconomic conditions in Europe were to persist.

Our stock price has performed rather well in the first half of the year, increasing by 13.6%, reducing the discount on the NAV to 34%, which is in line with historical averages.

As announced during our AGM in April, we have conducted over the last 9 months together with our Board of Directors a review of our strategy. This exercice is now finished and we will present to you in greater details the contours of our new strategy in the 2024 annual report. There have been no fundamental changes and

the common thread of our review has been to put more emphasis on our core strengths and values as a long- term investor backed by entrepreneurial families, as well as to be more focused and selective in our investment approach. Our sourcing efforts in Direct Investments and manager selection in Investment Funds will be more concentrated around the sectors of Industrials & Technology, Healthcare, Software & Business services. In Investment Funds, our main objective remains to build a solid portfolio of growth and lower mid-cap buyout managers in the US while continuing to support selected managers in Europe with whom we can partner in our core Direct Investments markets. We will not further grow our portfolio of seed and early stage venture capital funds as we feel that this requires specialized competencies and networks in order to get access to top quartile managers.

Looking ahead, we prepare ourselves for an economic environment that will remain difficult for some time. Recent signals by the US Federal Reserve to begin cutting interest rates could create positive momentum for a recovery but ongoing geopolitical tensions in the Middle East and Ukraine as well as the uncertain outcome of the US elections in November continue to weight on consumer sentiment.

Thanks to our strong teams, solid and well diversified portfolio and significant liquidity position, we are confident that we will be able to master future challenges and seize attractive opportunities as we have done successfully in the past.

John Penning

"We have the flexibility

to structure a transaction that brings a tailor-made solution to an entrepreneur."

Mission statement

Luxempart ambitions to embark on enthousiastic growth journeys alongside passionate entrepreneurs and like-minded investors, bringing great companies to the next level of their development.

Strategy

We invest in proven companies with strong market positions,

a robust cash flow generation, and significant growth prospects. We accompany our partners through active ownership, helping them achieving superior growth, organically or through a buy-and-build strategy.

Our unique presence in France and in Germany enables to set bridges between those two large markets, and even further.

Values

We nurture the same strong values that made our past successes: - Positive alignment with our partners

- Resilience in difficult times

• Honesty and respect for people
• Passion for the business
• Solution-orientedthinking
• Rigor, hard work, and no complacency

Two pillars

DIRECT

INVESTMENTS

67% NAV

Geographies:

France, DACH, Belux, Italy

Preferred sectors:

Industrials & Technology,

Healthcare, B2B Services

Maturity:

Late growth, small to mid-sized buyout

Ticket size: EUR 25 - 100m

Portfolio construction: 20 - 25 lines

Value proposition:

• Partnership approach
• Flexible investment horizon
• Minority or majority

INVESTMENT

FUNDS

24% NAV

Geographies:

Europe, US

Strategies:

Resilient growth, small to mid-sized buyout and secondaries

Preferred sectors: Technology, Healthcare, B2B Services & Industrials

Portfolio construction:

± 30 active managers

Value proposition:

• Professional selection
• Give access to best-in-class
   managers
• US diversification

Highlights half-year 2024

Activity & performance

Global context

Luxempart performance

€ 2,297m

NET ASSET VALUE

€ 183m

CASH IN TRANSPARENCY

Direct Investment

€ 74m

INVESTED IN DIRECT INVESTMENT

1

NEW INVESTMENT, AND FOLLOW-ON INVESTMENTS

Investment Funds

€ 34m

NEW COMMITMENTS

€ 36m

CAPITAL CALLED

+0.7%

GLOBAL PERFORMANCE H1-24

10%

DIVIDEND INCREASE IN 2024

€ 138m

PROCEEDS RECEIVED FROM EXIT

1

EXIT

3

NEW RELATIONS

€ 3m

PROCEEDS RECEIVED

The global environment in Europe remained mixed during the first semester of 2024. Geopolitical tensions persisted at our borders, while political uncertainties emerged in certain of our markets, weighing on investor confidence. Situation in the US is also volatile, with the prospect of the upcoming US presidential election.

On a macroeconomic front, interest rates remained high, maintaining pressure on consumption and on numerous sectors of activities. This all resulted in still low GDP growth figures in our core markets, below expectations.

Stock markets nevertheless kept some positive momen- tum, especially at the start of the year. Our benchmark index, the MSCI Mid Cap Europe Net Return index showing an increase of 5.35% over the period. The second semester will tell us whether this was an over-estimation of H1-24, or an anticipation of a stronger end of year.

Net Asset Value (in EUR m)

Luxempart NAV remained relatively stable during the course of H1-24, our dividend payment (-1.9% impact on our NAV) being partially compensated by a slightly positive global performance (+0.7%), resulting in an overall NAV decrease of -1.1% to EUR 2,297m, compared to EUR 2,324m at 31 December 2023.

This low but still positive performance is globally in line with the first GDP growth indicators of our core Euro- pean markets, France, Germany, and Italy, for the same period, reflecting the gloomy environment we are currently facing.

Compared to our benchmark index, the MSCI Europe Mid Cap Net Return index, over our usual, 4-year period, 30/06/2020 - 30/06/2024, our performance nevertheless remains strong. Luxempart indeed generated an IRR of 14.5% over this reference period, largely outperforming the ca. 8.9% IRR realized by the index over the same period.

On the investment front, after a very strong year 2023 in terms of deployments, the start of 2024 was slightly quieter. We invested EUR 110m in both our Direct Investments and Investment Funds activities over the semester, while cashing in EUR 142m, mostly from the sale of ESG in April 2024. Incoming dividends from our portfolio companies amounted to EUR 37.2m, covering our operating expenses for the period and a part of our own dividend. This recurrent source of revenues is highly valuable to manage our operating cash flow.

The Group's financial liquidity in transparency hence increased to EUR 183m, or 8.0% of our total NAV, which we are satisfied with in the current context of economic uncertainties.

We kept building up our credit facilities program over the first semester of 2024, reaching now a total of EUR 200m of committed credit facilities, of minimum 3-year tenors, signed with various banks of Luxempart. Those credit facilities were totally undrawn at 30 June 2024.

Direct Investments

The performance of our Direct Investment portfolio was slightly positive at +1.0% during the first semester of 2024.

Our portfolio companies active in the healthcare, software and services sectors in general kept performing well during the past semester. Those companies are mostly active in low cyclical sectors and kept growing resiliently in those difficult times.

Foyer as well performed strongly during the first semes- ter, benefiting from the current high interest rate environment to achieve strong financial and overall results. This balances to a certain extent the negative impact the high interest rates had on other sectors and on consumption in general.

DIVESTMENT ACTIVITY

In April 2024, we closed the already announced sale of ESG Elektroniksystem- und Logistik- GmbH to Hen- soldt AG, for a total proceed of EUR 138m (fixed price

• earn out 1). This marked the end of a very successful investment for Luxempart, that started back in 2015, and generated a significant 7.2x MoM return. This example highlights the value of flexibility offered by permanent capital structures like ours, enabling longer investment horizons, where exits are driven solely by economic con- siderations, rather than by distribution constraints.

Investment Funds

Our Investment Fund activity has performed modestly since December 2023 reflecting the subdued market conditions. We recorded a performance of 1.1% over the period driven mainly by our secondary and buyout investments with a rather flat performance of our venture exposures.

Late Q2 2024 we saw an increase of capital calls from our managers indicating a modest return to deal making being for add-ons or new platform investments.

In absolute terms, the Net Asset Value of our Investment Funds rose from EUR 509m in 2023 to EUR 548m at the end of June 2024. This increase is mainly due to the net cash inflows into the program of EUR 33m (capital calls of the period less distributions) during this first semester.

Portfolio NAV by geography

NAV 31/12/2023

NAV 30/06/2024

NORTH 10.1%

AMERICA 11.4%

GLOBAL 16.4% 16.5%

EUROPE 72.1% 70.4%

ASIA 1.4% 1.7%

In this respect, the slowdown that we had announced last year in some of our more cyclical portfolio companies has unfortunately been confirmed, weighing on those companies' performances. This was especially the case in Industrial businesses and in activities related to the luxury sector. The real estate sector also remains very difficult, investors showing little appetite to re-enter the market in the current context of high interest rates.

Overall, and taking a step back, our Direct Investment portfolio is solid and faring relatively well in this challenging environment, with a few points of attention we are taking care of. Our valuations are reasonable, with EBITDA multiples of 9.5x in average on our direct port- folio. Our portfolio's leverage also stands on the low side, at 2.5x on average (excluding Foyer and Atenor).

INVESTMENT ACTIVITY

Following an active investment year in 2023, the first semester of 2024 has been slightly quieter. We nevertheless had the pleasure of welcoming Medios AG to our Direct Investments portfolio.

Medios AG is a German listed Healthcare company focused on the wholesale and compounding of specialty pharmaceuticals. We have been following this company over the last 2 years and were impressed by its strong market position and growth track record. Our interest to become a key shareholder was triggered by the acquisition of Ceban in early 2024 providing the company with a strong international footprint. We had the opportunity to buy a significant stake of 14.9% from the now retired founder of Medios and will support the company in their ambitious growth plans.

Besides this new investment, we were active as well on our existing portfolio, with additional reinforcements made in listed company Nexus, allowing us to cross the 10% ownership threshold, and in Evariste, to support their buy-and-build activity.

€PROCEEDS138m

26IRR .9%

€AMOUNT56mINVESTED

14LUXEMPART.9%STAKE

INVESTMENT ACTIVITY

During the first semester of 2024, Luxempart subscribed EUR 34m in three new funds.

Thanks to our ongoing mapping efforts and strong manager engagement, we secured access to oversubscribed managers such as Avesi Partners, a healthcare and B2B services buyout manager, and Sterling Group, which takes control positions in manufacturing and B2B services com- panies. Additionally, we established a new relationship with Five Elms Capital, a growth equity manager primarily investing in bootstrapped, double-digit growth companies that deliver SaaS products and services.

These commitments align with our strategy of expanding into new U.S. funds while maintaining existing relationships that continue to meet our performance, fund size, and operational expectations.

New commitments for H1-24 were allocated entirely to US managers, with approximately 60% allocated to buy- out and 40% to growth equity strategies.

Our total undrawn commitments stand at EUR 246m at the end of June 2024.

PROCEEDS

As in 2023, Fund distributions were limited to EUR 3m, most of it from our secondary and growth funds. Despite a recovery in public equities, the market environment remained volatile, and the private equity sector continued to suffer from a reduced exit activity, and expensive borrowing costs, leading managers to postpone exits and focus on operating improvements.

3NEW RELATIONS

€OPEN COMMITMENTS246m

Other financial information

Sustainability statement

MAIN IFRS INDICATORS

The financial statements of Luxempart have been prepared in compliance with the International Financial Reporting Standards for the period ended 30 June 2024.

STOCK PERFORMANCE

Luxempart's shares are traded on the Luxembourg Stock Exchange. In order to improve liquidity, KBC intervenes as liquidity provider on an independent but remunerated basis. It buys and sells on the market in line with the

At Luxempart we attach great importance to acting as a role model for our portfolio companies, by embedding responsible practices and ESG criteria into our business practices. In the first half of 2024, Luxempart has made significant progress in advancing our commitment

to sustainability and Environmental, Social, and Governance (ESG) principles. Our efforts are focused on two key areas: our operations as a corporate entity and our activities as an investor.

market movements. Our stock price stood at EUR 75.00 as of 30 June 2024, increasing by 13.6% compared to 31 December 2023.

SUSTAINABILITY WITHIN OUR ORGANIZATION

The Group equity of Luxempart decreased to EUR 2,297m at 30 June 2024, as a result mainly of the performance of our portfolio, our operational expenses and taxes incurred so far, the dividend paid out to our sharehold- ers, an some own shares purchases. Profit of the 6 months period ended 30 June 204 amounts to EUR 17m, compared to EUR 89m for the 6 months period ended 30 June 2023.

DIVIDEND

The Annual General Meeting of the shareholders held on 29 April 2024 approved the payment of a gross dividend of EUR 2.17 per share. This dividend represented a total amount of EUR 43.7m for Luxempart in 2024, which was paid out on 15 May 2024. Based on a Luxempart stock price of EUR 75.00 per share at the date of the dividend payment, this represented a gross dividend yield of 2.9% for our shareholders.

RECENT POST CLOSING EVENTS

Luxempart resumed its purchase of Medios AG shares following their half-year publication. On 22 August 2024, we notified the market of crossing the 15% shareholding threshold in Medios AG.

OUTLOOK

We remain cautious about the outlook for the coming months, as we see no clear signs of recovery on the markets.

Fears are rising about a possible slowdown in the US economy, that has resisted well so far. This would negatively impact the already fragile world economy. The US Federal Reserve could accelerate interest rates cuts in order to re-stimulate consumption, but with other fears on inflation levels. Our assumption is that interest rates might start to decrease slowly in the coming months, but not at the pace that was foreseen initially by the mar- kets. And hence, we don't see a strong recovery of the real estate market in the near future, nor of consumption in general. We therefore expect another weak semester in more cyclical businesses.

Corporate Social Responsibility

As part of our corporate sustainability efforts, we have established a dedicated working group focused on Corporate Social Responsibility (CSR). This group plays a central role in driving our internal sustainability initia- tives. Among its key priorities are enhancing employee well-being and fostering community engagement. The CSR working group is committed to improving the work- place environment by implementing various health-related initiatives, including first aid training for employ- ees. These efforts aim to create a safe and supportive atmosphere within our organization.

In addition to our focus on employee well-being, we have decided to launch the "Give Back to Community" program, which marks the beginning of our journey to positively contributing to the community in which we operate. We have already established contacts with several associations in Luxembourg with the primary objective of this initiative being to support the development of sustainable entrepreneurship and to foster an entrepreneurial spirit within the community. Through long-term partner- ships, we aim to help build a more resilient and innovative local economy by encouraging sustainable business practices and empowering individuals with the tools and knowledge needed to succeed.

Governance Framework

In parallel with our CSR efforts, we have also made significant strides in strengthening our governance framework. One of our key achievements has been the development and implementation of a comprehensive anti-harassmentpolicy. This policy is designed to ensure a respectful and safe workplace for all employees. To support this initia- tive, we have mandated e-learning modules that provide employees with the knowledge needed to prevent, iden- tify, and address harassment effectively.

Further reinforcing our governance standards, we have updated our Anti-MoneyLaundering and Counter-TerrorismFinancing policy. These updated policies not only comply with legal requirements but also go beyond them to ensure the highest levels of integrity within our operations.

Recognizing the growing importance of data security, we have also advanced our IT governance and security practices. We are currently finalizing a new IT Security Charter, which will establish clear protocols to protect our data and secure our information systems.

OWN SHARES

As at 30 June 2024, Luxempart holds a total of 574,682 own shares which corresponds to 2.8% of the issued share

On the other hand, this context should continue to benefit Foyer, for which we anticipate sustained strong performances in the coming months.

ESG INTEGRATION IN OUR INVESTMENT ACTIVITIES

capital for a book value of EUR 24m. The Annual General Meeting of the shareholders held on 29 April 2024 has authorized to buy back up to 30% of own shares for a price up to EUR 150 per share. This authorization expires at the Annual General Meeting of 28 April 2025 where it will be proposed for renewal.

In this context, we are extremely satisfied to have a strong liquidity position on our balance sheet, and not to have the same exit constraints as other players on the market. This allows us to manage our portfolio in the best interest of our shareholders, without external pressure. And we continue of course to look at good investment opportunities on the market.

ESG Due Diligence and Portfolio Monitoring

Guided by our commitment to being a responsible investor and our ambition to continuously improve the ESG maturity of our portfolio, our investment strategy remains focused on integrating ESG matters across all our activ- ities. ESG analysis remains a core component of our due diligence process before making any new investments (a direct investment or a fund investment). This thorough assessment helps us identify potential risks and opportunities related to environmental, social, and governance factors. In addition to our pre-investment evaluations, we continue to closely monitor the ESG performance of our portfolio companies. This year, we conducted the second edition of our annual ESG questionnaire, which provided us with an extensive collection of high-quality data. This information is critical in tracking the progress of our portfolio companies and guiding them towards adopting more sustainable business practices. Leveraging the insights gained from our ESG questionnaire, we provide tailored

support to our portfolio companies. This enables them to align with our sustainability ambitions and develop business models that are more responsible and resilient.

Support for CSRD Implementation

The next focus in our investment activities is supporting our portfolio companies in implementing the Corporate Sustainability Reporting Directive (CSRD). We are actively involved in helping these companies navigate this complex process, offering guidance and advice to ensure they meet the directive's requirements effectively. Alongside this, we have continued to enhance the ESG competencies of our investment team. By raising awareness about the implications of the CSRD on our portfolio, we are equipping our team with the knowledge to manage ESG risks and opportunities effectively. This ongoing education includes strategies for identifying and avoiding greenwashing, ensuring that our ESG practices are both effective and credible.

Main risks and uncertainties

Luxempart faces specific risks due to the nature of its activities. Each of its investments is exposed to particular risks, mainly due to the business, location, regula- tion, customer base and strategy decisions. Luxempart implements governance rules and closely liaises with the management of the major portfolio investments to mitigate the risk factors.

A major risk of Luxempart on all levels of the Group is the market risk. All our assets are impacted by the evolution of financial markets and macroeconomic indicators (stock markets, comparable transactions of peer compa- nies, valuation multiples, interest rates, inflation, eco-

The liquidity risk is limited for Luxempart, as the Company is not an investment fund submitted to exit con- straints. Our Group is a patient investor who is not driven by the financial markets and their volatility cycles. Our investment teams and our Audit, Compliance, and Risk Committee closely follow the valuation of the portfolio investments. Investment and divestment decisions depend more on specific company analysis than financial market or fund investment cycles.

The main risks to which Luxempart is exposed as well as the Group management risk system are described in more details in the Statement of Corporate Governance

Responsibility statement

nomical growth…).

and in the note 24 of the Financial Statements in the Annual Report 2023.

The Board of Directors and the Group Executive Committee of the Company reaffirm their responsibility to ensure the maintenance of proper accounting records

knowledge, the Condensed interim consolidated financial statements as of 30 June 2024, prepared in accordance with the IAS 34 Interim financial reporting, give a true

Alternative performance measures

disclosing the financial position of the Luxempart Group with reasonable accuracy at any time and ensure that an appropriate system of internal controls is in place to ensure the Group's business operations are carried out efficiently and transparently. The Board of Directors is responsible for the fair preparation and presentation of the Condensed interim consolidated financial statements in accordance with Luxembourg law and considers that it has fully complied with these obligations.

In accordance with Article 3 of the Luxembourg law of 11 January 2008, as subsequently amended, on transparency requirements in relation to information about issuers whose securities are admitted to trading on a regulated market, John Penning, in his capacity as Managing Director of the Company, declares, that to the best of his

and fair view of the assets, liabilities, financial position and profit of the period of the Company and the undertakings included in the consolidation taken as a whole (hereinafter the "Group"). In addition, the present management report includes a fair review of the development and performance of the business and the position of the Group, together with a description of the principal risks and uncertainties that they face.