The European model of SHAREHOLDER FOUNDATIONS : a source of - PowerPoint PPT Presentation

The European model of SHAREHOLDER FOUNDATIONS : a source of inspiration for entrepreneurs Anne-Lise Bance, Project Manager Prophil

About us

Prophil is a strategic consul ting company dedicated to the mutuall y-beneficialconvergence of philanthropic and economic models.

General overview

The first european study on shareholder foundations HYBRIDity industry strategy transparency transmission majority Shareholder y famil foundations giving Public interest shareholders philanthropy profitability GOVERNANCE Long term sustainability

HYBRIDity industry strategy transparency transmission Shareholder majority y famil foundations giving Public interest shareholders philanthropy profitability GOVERNANCE Long term sustainability #shareholderfoundations

european examples: Denmark and germany

Shareholder foundationsin europe: 1 2 key figures SHAREHOLDING DECISION - MAKING BODIES denmark germany four SHAREHOLDER PROPOSITIONS SHAREHOLDER FOUNDATIONS FOUNDATIONS TO DE VELOP SHAREHOLDER FOUNDATIONS IN FR ANCE 1/3 6 20 54 % 20 % % 4 3 OF THE LARGEST OF SHAREHOLDER SHAREHOLDER FOUNDATIONS OF THE MARKET OF DANISH ENABLE THE DIREC T REFORM THE FOUNDATIONS OUT OF THE 15 DANISH FIRMS CAPITALIZATION OF THE SPENDING ON CREATED SINCE 2000 LARGEST GERMAN FOUNDATIONS BELONG TO COPENHAGEN STOCK RESEARCH AND MANAGEMENT OF THE INHERITANCE FOUNDATIONS EXCHANGE DEVELOPMENT FIRM BY A FOUNDATION LAW sweden SHAREHOLDER FOUNDATIONS switzerland SHAREHOLDER FOUNDATIONS 25 % FOUNDATIONS SHAREHOLDER OF THE SWEDISH ECONOMY 10 1 € BILLION CAPITALIZED SHAREHOLDER FOUNDA - IN MAJORITY IN SHAREHOLDER TIONS CREATED EACH YEAR FOUNDATIONS France 1/3 MAJOR SHAREHOLDER € FOUNDATIONS ( MAJORITY MILLION SHAREHOLDER OR MINORITY USED EACH YEAR BY OF THE STOCKHOLM MOX 30 BLOCKING ) SHAREHOLDER FOUNDA - INDEX IS CONTROLLED BY TIONS TO THE RESEARCH FOUNDATIONS OF THE WALLENBERG SPHERE

The denmark case : shareholder foundations as a source of employment and stability 20 % 1 ,350 O F T H E L A R G E S T S H A R E H O L D E R D A N I S H F I R M S F O U N D A T I O N S B E L O N G T O F O U N D A T I O N S A M O N G 1 4 , 0 0 0 F O U N D A T I O N S FINANCIAL WEIGHT ECONOMIC P H I L A N T H R O P I C WEIGHT OF SHAREHOLDER FOUNDATIONS 54 % OF SHAREHOLDER FOUNDATIONS D O N A T I O N S 10 % D I S T R I B U T E D E A C H Y E A R B Y T H E S E F O U N D A T I O N S 800 € OF MARKET CAPITALIZATION OF THE NATIONAL O F T H E C O P E N H A G E N S T O C K MILLION W E A LT H EXCHANGE = € 47 BILLION

The novo nordisk foundation m “ THE CREATION OF SHAREHOLDER ; THE NOVO NORDISK Grants s FOUNDATIONS WAS A MEANS FOUNDATION m TO PROTECT AGAINST FOREIGN Investment ACQUISITION” in medical h research and 100 % MARIANNE PHILIP , PRESIDENT OF THE DANISH biotechnology o COMMITTEE ON FOUNDATION GOVERNANCE NOVO A/S (HOLDING) 25,5% capital 25,9% capital 73% voting rights 70,5% voting rights NOVO NORDISK NOVOZYMES p A/S A/S m o s l DIVIDENDS HOLDINGS

Promoting « patient capitalism » : Shareholder foundations in germany 500 – 1/3 1,000 S H A R E H O L D E R F O U N D A T I O N S OF SHAREHOLDER FOUNDATIONS CREATED SINCE A M O N G 2 0 , 0 0 0 F O U N D AT I O N S THE YEAR 2000 6 6 chiffres clés SHAREHOLDER E C O N O M I C FOUNDATIONS WEIGHT O U T O F T H E 1 5 L A R G E S T (COMBINED ASSETS) G E R M A N OF GERMAN FOUNDATIONS 100 F O U N D AT I O N S € BILLION

The rob obert bos osch fou oundation on the foundation ownership of an industrial powerhouse THE ROBERT BOSCH THE ROBERT BOSCH INDUSTRIETREUHAND KG THE BOSCH FAMILY FOUNDATION 0.01% OF EQUITY 7% OF EQUITY 92% OF EQUITY (UNDOUBTEDLY THE LEGAL 7% OF VOTING RIGHTS MINIMUM) NO VOTING RIGHTS 93% OF VOTING RIGHTS THE ROBERT BOSCH GMBH 1% OF EQUITY NO VOTING RIGHTS

A growing interest in France for shareholder foundations

One main example: the pierre fabre foundation t d WHO OWNS WHAT? “ THE PHILANTHROPIC y ACTIVITIES OF THE FOUNDATION m ARE SUBORDINATED TO s THE HEALTH OF THE GROUP. PIERRE FABRE FOUNDATION WE HAVE A GREAT RESPONSIBILITY FOR 100 % ECONOMIC PERFORMANCE.” PIERRE-YVES REVOL , PRESIDENT PIERRE FABRE HOLDINGS “ THE FOUNDATION’S VERY EXISTENCE PERPETUATES SELF-CONTROL EMPLOYEES 86 % PIERRE FABRE’S HUMANISTIC VALUES” 7 % 7 % PIERRE-YVES REVOL AND BÉATRICE GARRETTE , PIERRE FABRE PRESIDENT AND EXECUTIVE DIRECTOR SA OF THE PIERRE FABRE FOUNDATION

1 2 REFORM THE « PRINCIPLE OF SPECIALIZATION » AND ENABLE GIVE FOUNDERS THE FOUNDATIONS MAJORIT Y MAJORIT Y IN SHAREHOLDING DECISION - MAKING BODIES four PROposals TO D E VELOP SHAREHOLD ER FOUNDATIONS IN FR ANCE 4 3 ENABLE THE DIREC T REFORM THE MANAGEMENT OF THE INHERITANCE FIRM BY A FOUNDATION LAW Toward a new status in France … « fonds d’intérêt économique »

From shareholder foundations to mission-led companies

Will tw Wi twenty ty-fi first ce century bu business be mission be on-le led ? « a mission-led company stipulates in its by- laws an extended corporate purpose covering societal issues (enforceable by third parties) »

Thanks for your attention www.prophil.eu www.fondations-actionnaires.eu www.entreprisesamission.eu