Fehsenfeld Family Newsletter_Q1_2021

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In the Spotlight

ATOMIC HABITS:

SMALL CHANGES THAT

MAKE A BIG IMPACT

At the beginning of each year many of us make New Year’s resolutions and we go big! “I’m going to work out 1 hour every day.” “I’m going to lose 25 pounds by swim suit weather.”

“I’m going to read a book every week.” And so on.

IN TH IS ISS UE: 2

THG Day to Day

4

Family Council Update

6 J E Fehsenfeld Family Foundation Update 7

Family Circle

8

Vision

The problem with going big is that when we don’t see immediate results, we lose motivation and we often give up. What if we chose small steps in one or two areas—habit building in a manageable way? Would we see more success?

James Clear, in his book Atomic Habits, gives four laws for incremental success: Make it Obvious; Make it Attractive; Make it Easy; and, Make it Satisfying.

I’m in. Two small changes for me this year: a healthier diet (no calorie counting here, just better choices), and adding a little more exercise to my week—my Christmas gift to myself, a treadmill to additionally accessorize my garage gym.

I’ve been challenged to start small, keep it simple, and make it known. Done!

And most important—don’t give up! Life happens and we get distracted, but we can jump back in when (not if) we get off track.

Small steps every day can lead to big change. Want to join me on a journey of your own? — D E B B I E FO R M O R E I N FO R MATI O N CH ECK O UT ATO M IC HAB ITS BY JAM ES CLE AR . FR ED R ECO M M EN D ED IT TO U S A CO U PLE O F Y E ARS AG O. CO PI ES O F TH E BOO K W ER E PART O F TH E 2019 FAM I LY R ETR E AT SWAG .

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IN 2021

WE WILL BE FEATURING STORIES THAT GIVE YOU A FEEL ...

FOR WHAT IT’S LIKE INSIDE THG EVERY DAY.

T H G U P D AT E

THE HERITAGE GROUP:

DAY TO DAY

At the end of December 2020, one of our HG Ventures companies, Romeo Power, went public. This was the first realization of an HG Ventures investment! This is the story of how several different arms of The Heritage Group came together to make it happen, as told by Kip Frey, head of Ventures. The success of this effort illustrates the power of the New Ventures platform within THG and the power of One Heritage.

You may recall from a previous newsletter that Romeo Power makes electric vehicle battery packages. They are responsible for all the technology around the cell that allows it to power an electric vehicle— in Romeo’s case medium and large trucks.

When we first evaluated Romeo Power as a potential HG Ventures investment in 2019, we brought people in from across THG to do due diligence – the environmental team, the research team, and experts from within HGV. We evaluated the market potential and felt it was high.

There was also a lot of potential for us to add value through Heritage Environmental Services’ (HES) capabilities of battery collection and recycling, and governance expertise from HG Ventures.

To test the waters, we loaned them some money and agreed on the option to invest in the next round. In the meantime, HGV helped Romeo strengthen their corporate governance.

As Romeo grew, BorgWarner expressed interest in investing. HGV gained a seat on Romeo’s board and began to help them navigate the partnership with BW. We made our first investment in conjunction with BorgWarner. John Glushik, VP at Ventures, did a great job developing the relationship with Romeo and helped the Board elevate its processes.

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which will give them a cradle

The deal was technical and tri helped John and Jeff navigate trading under the ticker symbo

Next, we organized “Battery Day” at the Center, bringing in Romeo, BorgWarner, and industry experts. This allowed Jeff Laborsky at HES to start some creative brainstorming about opportunities with the partnership.

Romeo needed expertise in end-of-life battery recycling, which HES has, and the two started developing a relationship.

In 2020, we started to get interest from SPACs – special purpose acquisition companies, entities formed with the purpose of taking companies public more easily. Jeff Laborsky and John Glushik developed a very nuanced, symbiotic, relationship with one of the SPACs. It took a lot of good judgment to make it work.

During this process, our small and nimble Investment Committee was able to move quickly to inject cash at needed points in the process. This allowed Romeo to move toward the end goal even in the midst of COVID. The unique and creative approach of HGV kept the opportunity alive where a more bureaucratic organization might have faltered.

At the end, a new super symbiotic partnership was formed. HES made plans to develop a new business focused on battery recycling. Romeo agreed to provide funding for the new enterprise, which will give them a cradle-tograve process for their batteries.

The deal was technical and tricky to finalize. Our Strategy + Mergers & Acquisitions team helped John and Jeff navigate through the deal with finesse. Once completed, Romeo started trading under the ticker symbol RMO and we were able to begin selling our shares right away.

A normal VC firm doesn’t have the resources that were at our disposal during this entire process, and that’s a source of value creation for THG. The Center is another resource – it acted as a convening venue and the location for Battery Day. The nimbleness of the Investment Committee enabled it to do a lot of things that are unusual but were the right thing to do at the time. We could also leverage the balance sheet of THG to support.

Fred & Amy had a vision for how HGV could add value and stuck with the vision throughout the process to success. In sum, the process was a collaborative, creative and successful venture, and in taking Romeo public, we were able to realize a strong return on our initial investment – our first (hopefully of many) HGV success story.

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A normal VC firm doesn’t hav and that’s a source of value cr convening venue and the loca enabled it to do a lot of things could also leverage the balanc

Fred & Amy had a vision for process to success. In sum, the in taking Romeo public, we w first (hopefully of many) HGV

FAMILY COUNCIL UPDATE The Council’s first meeting of 2021 was held February 6 & 7th via Zoom.

The four-hour meeting on Saturday was focused on family connections.

Shawn and Frankie have worked hard to develop a mission for connecting family members more effectively.

(See the Family Council’s Annual Report).

THE FAMILY COUNCIL Frankie Fehsenfeld, Co-chair Shawn Peterson, Co-chair Carissa Fehsenfeld Ben Hardy Ashley Pfeiffer Terri Smith Trina Stuk Justin VanGenderen Ale Winkler

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To that end, February hosted two Zoom family activities, a cooking experience and a wine and chocolate tasting.

Both were well attended with around 25 family members participating in each venue.

Look for more interactive opportunities throughout 2021!

Sunday the Council focused on more tangible discussions: reviewing budget, committee updates, and policy review.

The Communication Committee has some exciting projects underway this year while maintaining its e-newsletter and The Box communication strategies—hope you enjoy March’s swag items!

The Early Education Committee is working on some creative ideas to engage our younger family members during the year. Cousins are missing Camp Fehsenfeld!

The Scholarship Committee is working on a few ideas to better engage with our family scholars—this year Margeaux Tritch Sisson, working on her master’s in chiropractic medicine; Marissa Fehsenfeld; in her final year at Butler University; Jaiden Galford, and Fletcher Burns are benefiting from the program.

The Community Committee is working on a major family tree project spearheaded by Ale Winkler. The development process is slow, but the Council is hoping for an interactive final product that will support our growing family.

While we haven’t been able to enjoy meeting together as a family in recent years, there is a lot in process to keep us in touch.

Cooking Together with 12th Street Catering’s Andrew Osborne and Mark Surkin Menu Jumbo Lump Crab Cakes; Fennel & Apple Slaw; Ancient Grains Pilaf; Rosemary Cornbread; Oatmeal Cream Whoopie Pie Coo king T

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COO KI N G TOG ETH ER WITH 12TH STR EET CATER I N G’S AN D R EW OS BO R N E AN D MAR K S U R KI N

MENU

Jumbo Lump Crab Cakes; Fennel & Apple Slaw; Ancient Grains Pilaf; Rosemary Cornbread; Oatmeal Cream Whoopie Pie

Wine Tasting Sampling: O’BrienN G Estate, Napa Valley: Chardonnay, Merlot, Seduction, Cabernet Sauvignon, WI N E TASTI No.Sampling: 6 GrissiniO’Brien Sea SaltEstate, Panevino, forChardonnay, wine, and chocolate sourced from a NapaSauvignon, Valley Napafood Valley: Merlot, Seduction, Cabernet chocolatier.

No. 6 Grissini Sea Salt Panevino, food for wine, and chocolate sourced from a Napa Valley chocolatier.

MEETING WITH OUTSIDE IN J. E. Fehsenfeld Foundation Update

Outside In is an organization that supports youth experiencing homelessness and other marginalized people in the Portland area as they move toward health and self-sufficiency (Outside In).

Two significant modes of treatment include Dialectical Behavior Therapy (DBT) and Assertive Community Treatment (ACT) (Ibid).

DBT is a program that teaches mindfulness and skill building to manage emotions, distress, and interpersonal relationships (Ibid).

Outside In’s ACT program, also known as RISE, provides holistic and intensive mental health services in a community setting. ACT helps people become independent and achieve their goals as they experience recovery (Ibid).

Board members learned some of the challenges that prevent a continuum of care, for example the silos that exist between mental health services and substance abuse recovery. The two are often related; however standard treatment protocol approaches these as separate issues. Many times individuals who struggle with mental wellness and who also are using addictive substances are referred to substance recovery programs before they are able to enter mental wellness programs. This (and other challenges facing mental health services) calls for investment in advocacy as well as investment in treatment providers.

THE FOUNDATION BOARD: Ro b i n Fe h se n fe l d , P res i d e nt Li sa Z i e m ba , V i ce P res i d e nt D e b b i e B a ke r, S ecreta r y Trea s u re r E ri ca D i l l ow An n a Fe h se n fe l d As h l ee H a rdy M eg a n Pete rso n B e n S ch i l l i n g S teve S t u k

A survey taken in January 2021 by the Kaiser Family Foundation indicates that 41 percent of adults in the US indicate that they are struggling with anxiety and/ or depression—this up significantly from prior years, indicating the increasing need for mental health care.

REFERENCES: KFF, Filling the Need for Trusted Information on National Health Issues https://www.kff.org/coronaviruscovid-19/issue-brief/the-implicationsof-covid-19-for-mental-health-and-

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In an effort to understand how the foundation might best invest in programs that provide mental health services, several members of the board joined in on a Zoom meeting in January with Patricia Patrón, Executive Director; Amanda Antenucci, Behavioral Health Director; and Tess Anawalt, Major Gifts Officer of Outside In, located in Portland, Oregon.

substance-use/

OUTSIDE.ORG

As the foundation board works toward our next United for Service Family Retreat, hopefully allowing us to make a difference in the mental health community, we will continue to pursue educational activities that inform best practices.

01

FAMILY CIRCLE SNOW DAY FUN!

02

03

01 Eliza and Louise Dillon

02 Fynnley Peterson

03 Cate and Cameron Arlinghaus

04 Nora Dillon

05 Bauer Morris

06 Wrigley Baker

04

05

06

YEARS OF MAKING A DIFFERENCE FA M I LY N E W S L E TT E R / Q 1 2 0 1 8

Family Council Update:

UNITED FOR WELLNESS

VISION STATEMENT

We are a business owning family with an An Interview with Fred: extraordinary history and a commitment

This summer our Family Retreat will focus on wellness. This has been an to preserving and perpetuating our important topic for you. Can you tell us why?

achievement.

We aim to All of us will experience family’s aging, an legacy effective of wellness program will help delay many of the challenges of that process.

I know maintain a inevitable strong sense of Now unity,that cohesion, what I know I believe strongly that it is important to instill good habits in life sharedI had values, will an enable our early. With the full benefit and of hindsight, takenwhich too casual approach to wellness until I reached age 60. Three neck surgeries were a wake-up diverse and growing family to act as a call and reinforced the need to be proactive in one’s life. collective and responsible steward of our resources forown generations In what ways have you pursued wellness in your life?

to come.

FA Mcritical I LY N E W S Las E T T the ER Q1 2021 Keeping one’s flexibility and maintaining good balance are years go flying by. I currently do a light work-out first thing in the morning which consists of a combination of stretching, walking, and light weights.