POUL DUE JENSEN FOUNDATION ACTIVE OWNERSHIP Looking after Grundfos' interests Since it was established in 1975, Poul Due Jensen Foundation has been obliged and committed to owning, protecting and developing Grundfos as a financially healthy business, never compromising on the fundamental values and principles of the founder. Looking after Grundfos’ interests is the focal point of our active ownership of Grundfos. In practice, it means setting out holistic long-term ambitions, and following up on and challenging Grundfos’ Board of Directors and Group Management. Overall ambitions for Grundfos The Foundation insists on Grundfos being a global leader in advanced pump solutions and a trendsetter in water technology, contributing to global sustainability by pioneering technologies that improve quality of life for people and care for the planet. The Foundation exercises its controlling ownership of 88% of the shareholding in Grundfos through the election of not only the directors of Grundfos Holding A/S, but also via the direct election of the chairman and the vice-chairman of the Board of Directors of Grundfos Holding A/S, as they – according to the Articles of Association – are elected directly by the Annual General Meeting. This provides the Foundation with a strong tool for influencing Grundfos’ development. Patience characterises the Foundation’s ownership. Taking into account fluctuations in global market trends and global, regional and local developments in general, we are able to allow short-term manoeuvring in the global economy. In the long term however, the Foundation expects the Grundfos Group to remain true to the eight overall ambitions laid down in the appendices to the Rules of Procedure of the Foundation’s Board of Directors, remembering the business principles that brought Grundfos to its current level, and setting ambitions for: • Annual organic growth in turnover • Annual pre-tax profit •A capital structure based on a high equity interest • Return on equity •The market-leading development, manufacturing, sale and service of highly innovative products •A socially responsible company which believes that its obligations go beyond those stemming from legislation and tax payments •Sustainability in products, production processes and other activities •Adherence to the Founders’ six values. The ongoing dialogue with the Grundfos Holding A/S Board of Directors and Group Management on these eight themes is an important tool for aligning expectations. 57
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