Santiago Principles Self-Assessment

CDP Equity SpA

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  • Pillar 1: Legal
  • Pillar 2: Institutional
  • Pillar 3: Investment
Principle 1

1. The legal framework for the SWF should be sound and support its effective operation and the achievement of its stated objective(s).

1.1. The legal framework for the SWF should ensure legal soundness of the SWF and its transactions.

1.2. The key features of the SWF’s legal basis and structure, as well as the legal relationship between the SWF and other state bodies, should be publicly disclosed.

The legal framework of CDP Equity S.p.A. (“CDPE”) is mainly represented by:

The above regulation provides for the corporate purpose and the investment criteria of CDPE. Ministerial Decree of 3 May 2001 define the companies of “significant national interest” which can be invested by CDPE.

CDPE’s major shareholder is Cassa depositi e prestiti S.p.A. (“CDP”), which is controlled by the Italian Ministry for the Economy and Finance. Bank of Italy (the Republic of Italy’s central bank) is a qualified minority shareholder. CDP group holds an 80% share participation while Bank of Italy holds a 20%.

The above legal relationships are publicly disclosed on the CDPE website

Principle 6

6. The governance framework for the SWF should be sound and establish a clear and effective division of roles and responsibilities in order to facilitate accountability and operational independence in the management of the SWF to pursue its objectives.

CDPE is a joint stock company, whose corporate rules are regulated by the Italian Civil Code.

CDPE's corporate governance framework is also set out in its Articles of Association which define a clear and effective division of roles and responsibilities.

Further, CDPE has drawn up a series of procedures representing its corporate regulatory system, in line with the best market practice for companies operating in the investments sector.

Different functions of each governing body are publicly disclosed on the CDPE website. corporate-bodies/corporate-bodies.html

Principle 18

18. The SWF’s investment policy should be clear and consistent with its defined objectives, risk tolerance, and investment strategy, as set by the owner or the governing body(ies), and be based on sound portfolio management principles.

18.1. The investment policy should guide the SWF’s financial risk exposures and the possible use of leverage.

18.2. The investment policy should address the extent to which internal and/or external investment managers are used, the range of their activities and authority, and the process by which they are selected and their performance monitored.

18.3. A description of the investment policy of the SWF should be publicly disclosed.

CDPE's mission, investment policy and selection process of investments& are clearly defined and publicly disclosed in its Articles of Association and detailed on CDPE's website. investment-perimeter-and-criteria.html).

Within the framework of its investment initiatives, CDPE seeks to distinguish itself as a long-term active minority investor with governance rights focused on growth capital in financially sound corporates.

CDPE acts as a prudent investor, operating with prudent leverage of its target companies, focusing on growth of organic business and not on financial engineering.

CDPE operates transparently in selecting and approving investments.