Strategic criteria

  • « Patrimonial » vision :
    • sectors with high barriers to entry
    • resilient business model, with predictable and recurrent cash-flows
    • potential for profitable long-term growth
  • European headquarters (Belgium, France, Germany, Switzerland, Austria, northern Italy, Luxembourg)
  • Growing exposure to markets undergoing rapid growth

Financial criteria

  • Investment size : target equity investment of EUR 100 - 250 millions for CNP's stake
  • Limited use of leverage allowing companies to invest their cash-flows in profitable growth
  • Dividend yield : 3% on investment, growing year-on-year
  • Long-term value creation : generation of a net operating profit (NOPAT) on capital employed exceeding the WACC

Governance

  • Association with families and/or management teams looking for long-term partnerships without maturity constraints.
  • Among « top » shareholders :
    • control or joint-control « from the start » or « progressively »
    • minority shareholder subject to stringent liquidity rules
  • Active role in the governance bodies. CNP aims to perform its professional shareholder’s role along three main axes:
    • Strategy: provide strong oversight and strategic support for management’s efforts to create long-term value (based on sustainable competitive advantages), including asset arbitrage, investments and disposals
    • People: selection of talented managers who drive the value creation of our shareholdings, motivating them through a close dialogue while respecting their operating autonomy
    • Financial engineering: sound financial discipline, optimizing NOPAT/Capital Employed, which should exceed the Weighted Average Cost of Capital (WACC) without over-leverage.