Section

Questions

1. Business model & competitive position

(10%)

1. How would you describe the company’s business model?

2. How strong do you rate the company’s competitive position?

3. What trends affect the company’s business model and competitive position?

2. Value drivers (Part 1)

(10%)

1. Sales growth: what seems to be a normal sales growth for the company? And what are the drivers of sales growth?

2. Margins: what seems to be a normal profit margin (EBIT or EBITDA) for the company? And what are the drivers of that margin?

3. Capital: how capital intense is the company? What do you think is the firm's cost of capital? What is the firm's return on invested capital (ROIC)

4. Please sketch how you see the company’s value drivers going forward

3. Sustainability

(20%)

1. Purpose: what is the company's mission / purpose / raison d'être? In what way does the company create value for society? How does it get paid for that value creation?

2. Stakeholders: what are the company's main stakeholders?

Please fill out the stakeholder impact tool

3. Externalities & impact: Does the company generate serious externalities? Are they positive or negative? How do you assess the chances of these externalities to be internalised? Thresholds: how does the company perform versus the planetary boundaries?

4.SDGs: which of the SDGs (if any) does the company help achieve? Which negative SDG exposures (if any) does the company have?

5.Impact: to what extent can the company’s impact be measured? Does the company report on its impact? How can its impact reporting be improved?

6. Material issues: what are the most material ESG factors? i.e., what issues are most critical to the success of the company's business model? Please fill out the given matrix, discussing for each of these most material ESG factors (1) how the company performs on it; (2) whether the company derives a competitive (dis)advantage from it; (3) how they might affect the value drivers

7. Sustainability reporting: how do you assess the company’s non-financial reporting? Does the company (claim to) do Integrated Reporting (<IR>)? To what extent do you see the seven principles of <IR> reflected in the company’s reporting?

4. Strategy

(10%)

1. How would you describe the strategy of the company?

2. To what extent does that strategy take into account the company's most material ESG issues? Please link to your answer in the sustainability section.

3. Is the strategy consistent with the company's purpose?

4. What does long-term value creation look like? What are the best KPIs for it?

5 .What does management compensation look like? To what extent does management have long-term incentives? And are those incentives aligned with long term-value creation?

6. How does the company communicate its long-term value creation with shareholders and stakeholders?

5. Value drivers (Part 2)

             (10%)

1. Given all of the above questions & their answers, how do you rate the effect of material sustainability issues on the value drivers going forward? Per value driver, please indicate whether you see a positive, negative or neutral effect

2. How would this affect your valuation of the company?

6. Investment conclusions

(10%)

1.How well is the company prepared, in your opinion, for the transition to a more sustainable economic model?

2. How attractive do you find the company as an investment?

3. What did you find most surprising when answering the above questions?

4.I f you were to engage with the firm, what topics would you address?