Direct investments

These business activities are characterised by the following features :

• Long-term investments thanks to permanent capital
• Combining the diversification of risk and with a focus on creating value for a few major investments
• Significant minority investments that enable us to play an active role as a professional and hands-on shareholder thanks to our experience, our network, our talented staff, and our entrepreneurial shareholders
• Regularly rotating or reducing investments, in order to keep the portfolio well-balanced

These investments account for around two thirds of the portfolio.

Atenor Group is a real estate development company listed on NYSE Euronext Brussels. Its role is to provide, via its urban and architectural approach, appropriate responses to new requirements imposed by developments in urban and professional living. Within this framework, the Atenor Group invests in large-scale real estate projects fulfilling strict criteria in terms of location, economic efficiency and respect for the environment.

www.atenor.be

Percentage of Luxempart’s portfolio

Investment proposition

Atenor is a professional property development team, with a portfolio that is focused on Brussels, although the team is increasing its diversification, primarily in Eastern European countries.

Atenor’s strengths are:

• its expertise in the development of mixed-use (residential and commercial) projects
• its risk diversification, thanks to a portfolio that varies in terms of location, state of progress, and the level of pre-marketing
• its know-how in terms of selecting projects, planning, project management, marketing, and urban development concepts.

Percentage of the dividends received by Luxempart

2017 performance

Following the completion of a few projects, including in Budapest, Atenor generated a profit of €22 million, and will pay a slightly higher dividend than in 2016.

2018 outlook

The budgeted results for 2018 are slightly higher than those in 2017, on the back of the planned sale of projects in Bucharest, and the launch of the sale process for some projects in Brussels.

Statement by the person responsible for the investments

Luxempart has strengthened its role as a stable joint majority shareholder, by buying back 25% of the 10% interest in Atenor held by Sofinim (AvH) via the new ForAtenor structure.

Year of investment : 2006

Value of the investment < €M 25

10%
Equity interests

10%
• Interest in the voting rights
• 1 representative on the statutory bodies

Registered office :
La Hulpe, Belgium
Area of activity :
Housing promotion

Foyer is the leading insurance group on the Luxembourg market. Its market share is around 39% in non-life and 16% in life insurance.

www.foyer.lu

Percentage of Luxempart’s portfolio

Investment proposition

Foyer is a fast growing company in a regulated and competitive sector that reaches a wide audience seeking to protect their wealth in an optimal manner.

Foyer’s strengths are :

• brand reputation;
• service quality;
• a network of international representatives;
• a family shareholder structure;
• the sound management of its financial assets.

The cross-holding in Foyer Finance has been eliminated, and the percentage interest in Foyer increased from 7% to 32% as part of the simplification of the Luxempart Group and the Foyer Group’s shareholder structure.

Percentage of the dividends received by Luxempart

(including the dividends from Foyer Finance for 2017 that have not yet been received)

2017 performance

Foyer ended the 2017 financial year with a profit of around €100 million thanks to its strong operating and financial income.

2018 outlook

A slight increase in that income may be possible, subject to the uncertainty relating to the financial income. The increased interest in Foyer is expected to enable Luxempart to generate a strong increase in dividends received during 2018.

Statement by the person responsible for the investments

As a result of its 32% direct interest in Foyer S.A., Luxempart will assume its role as a professional institutional investor alongside Foyer Finance, and will strengthen its presence on Foyer S.A.’s management bodies (Board of Directors and Specialised Committees).

Year of investment : 1988

Value of the investment : >€M 350

28%
Equity interests

32%
• Interest in the voting rights
• 3 representatives on the statutory bodies

Registered office :
Leudelange, Luxembourg
Field of activity :
Insurance, wealth management

Kaufman & Broad develops property for off-plan sale on the French market, and has a market capitalisation of around €900 million.

www.kaufmanbroad.fr

Percentage of Luxempart’s portfolio

Investment proposition

Kaufman & Broad is a professional development company that is expanding rapidly on the French residential property market, and is driven by the following positive factors :

• A growing population, couples separating, and lengthening life expectancy
• Tax arrangements that favour the construction sector
• Low interest rates
• A business model with a low risk profile, due to the fact that the buildings are pre-sold before construction works begin

Percentage of the dividends received by Luxempart

2017 performance

The company had a good year in 2017, when its revenues increased by over 12%, and its net income rose to €59 million.

2018 outlook

Kaufman & Broad is banking on a buoyant market, which will result in an increase in its revenues and net income of between 8 and 10%.

Statement by the person responsible for the investments

Luxempart is closely monitoring the trend in the property market, and considers that visibility in the sector will remain positive for at least the next two years.

Year of investment : 2016

Value of the investment > €M 20

2,8%
Equity interests

2,1%
• Interest in the voting rights

Registered office :
Paris, France
Area of activity :
Housing promotion

SES (Paris Euronext and Luxembourg Stock Exchange: SESG) is a global satellite operator with a fleet of 52 geostationary satellites.

www.ses.com

Percentage of Luxempart’s portfolio

Investment proposition

SES is a leading global satellite operator that has the following strengths :

• Solution provider in the video and data transmission sectors for fixed and mobile telephony, and government services
• Unique orbital positions, especially in Europe
• A strong, profitable, and resilient position in video, with a significant backlog
• Growth potential in data transmission

Percentage of the dividends received by Luxempart

2017 performance

The company’s operating and financial performance has been lower than forecast as a result of an adverse market, and of certain problems relating to the health of the fleet. The share price and financial results have been affected by these problems, and the dividend for the financial year will be cut by 40%.

2018 outlook

SES is still expecting a further slight decrease in video revenues for 2018, while data revenues, which account for 30% of revenues, are expected to increase slightly.

The company has stated that it expects to return to growth in the video and data sectors in the medium term thanks to the roll-out of new satellite capacity, which meets the requirements of HD and ultra-HD television channels, and the increasing data transmission requirements for fixed and mobile telephony.

Statement by the person responsible for the investments

SES will remain a major investment in Luxempart’s “support & direct investment” portfolio. Luxempart is represented on SES’ Board of Directors by its Executive Chairman. The above does not preclude arbitrage transactions in SES shares.

Year of investment : 1992

Value of the investment > €M 75

1,3%
Equity interests

1,1%
• Interest in the voting rights
• 1 representative on the statutory bodies

Registered office :
Betzdorf, Luxembourg
Area of activity :
Satellite telecommunication

Zooplus is the European leader in the dog and cat food online retail market, with revenues of over €1 billion, and strong commercial growth.

www.zooplus.fr

Percentage of Luxempart’s portfolio

Investment proposition

Zooplus wants to increase its share of the pet food market by taking advantage of the trend towards online retailing.

Zooplus’ strengths are :

• operations in the main European markets
• proprietary logistics centres
• an offering that covers a wide range of products, including third-party, proprietary and discount brands, and unbranded goods
• annual revenue growth of 25%, while remaining slightly profitable
• a significant market, with huge growth potential

Percentage of the dividends received by Luxempart

2017 performance

The company is currently prioritising revenue growth over profitability, which means that the 2017 financial year ended with revenues of over €1 billion, while a small profit of €4 million was generated.

2018 outlook

The company is expecting sustained revenue growth, which will further increase its share of its main markets.

Statement by the person responsible for the investments

Luxempart is in regular contact with the company’s management team, and meets other shareholders, in order to provide proper long-term support for the growth momentum against the backdrop of a switch from bricks & mortar retailing to online retailing.

Year of investment : 2017

Value of the investment  > €M 45

4,2%
Equity interests

4,2%
Interest in the voting rights

Registered office :
Munich, Germany
Area of activity :
Online business