STEP 7: Make Decision to Hold or Exit Investment

a) [INV./FUND MANAGER NAME]-authored financial and management commentary is written by the assigned RM or SGS COO and provides [INV./FUND MANAGER NAME]’s external perspective on the overall performance of the company, our perceived risks and opportunities, as well as the work we plan to accomplish in partnership with the company in the coming quarter. [INV./FUND MANAGER NAME] commentary answers the question of whether or not the company is achieving its financial and/or impact outcomes and/or milestones and, ultimately, if impact is being generated. b) Portfolio company commentary is written from the perspective of the

Founder/CEO of the portfolio company and covers the most important things that happened or were accomplished over the quarter; the company’s high-level sales and profit performance; budget performance; the main risks the company faces; the main opportunities it is seeking to pursue; and what the Founder/CEO plans to accomplish in the coming quarter.

Standards:

● Note to Reader: RMs should be available to answer any questions the portfolio companies may have regarding the aforementioned financial reporting process and deadlines. It has been RENEW’s experience that portfolio companies’ Financial

Managers tend to struggle with accounting and generating accurate financial statements in line with IFRS standards. RMs and/or other members of the team (e.g., the SGS CFO and/or the FAC) should be prepared to host corrective action meetings with portfolio companies’ Financial Managers to ensure the statements are tying out properly and are reflective of the activities that took place during the preceding quarter.

● Note to Reader: Historically, RENEW has seen portfolio companies struggle with the timing of revenue recognition, accounting for depreciation and/or amortization, accounting for loan interest expense and accounting for taxes. Pay particular attention to these accounting line items.

● [INV./FUND MANAGER NAME] commentary must add value to the overall IR. It is a recommended best practice that RMs and the IIC read the prior quarter’s IRs to ensure that the current quarter’s IRs are linear and logical and providing updates on activities, milestones that the company said it would set out to accomplish in the current quarter.

● A major question that [INV./FUND MANAGER NAME]’s commentary should answer is did the portfolio company achieve the activities and outcomes and/or milestones it or [INV./FUND MANAGER NAME] set out for the company to accomplish in the prior quarter’s IR during the current quarter? a. If yes, were the results captured?

b. If not, were the barriers to accomplishment captured and explained? And what is the risk mitigation / plan of action in place for the upcoming quarter so that the company can achieve it going forward?

STEP 5: DRAFT EXTERNAL INVESTOR REPORTS

Objective:

 To draft the external version of the quarterly investor reports that are consistent in style, formatting, content, delivers accurate financial data and statements, and value-added commentary from the portfolio companies and [INV./FUND MANAGER NAME] as an investment/fund manager.

Process:

1. The PM will generate the external investor reports for each portfolio company using the Tool - Investor Report Template, which in turn pulls from the following source documents: a. The Tool - PRM 0 Quarterly Running Meeting Notes. b. The Tool - PRM 1 Quarterly Running Meeting Notes. c. The Portfolio Company Dashboards: i. Sales & Profit TvA Charts ii. Financial Statements iii. Financial Ratio Table iv. Impact Table d. The reviewed and finalized portfolio company commentary from the Tool Portfolio Company Commentary Template. e. The drafted [INV./FUND MANAGER NAME] commentary. 2. By T+35, the PM will schedule and host the Portfolio Review Meeting 2 (PRM 2), during which the IM team will directly review the Draft IR Templates, sign off on the content, and assign next steps required for finalization.

Standard:

 The PM will require all RMs and/or IIC members to utilize the Tool - [INV./FUND MANAGER NAME] Style & Formatting Guide to ensure that all grammatical, syntax and spelling errors have been caught and corrected, and that the IR follows [INV./FUND MANAGER NAME]’s internal style and formatting guidelines.

STEP 6: FINALIZE & SEND EXTERNAL INVESTOR REPORTS

Objective:

 To finalize and send the external version of the quarterly investor reports that are consistent in style, formatting, content, delivers accurate financial data and statements,

and value-added commentary from the portfolio companies and [INV./FUND MANAGER NAME] as an investment/fund manager.

Process:

1. Once the IRs have been deemed “final” by the PM, they will email the reports to a designated copyeditor no later than T+37, someone who is external/outside of the generation process and therefore will more easily spot violations of the Tool [INV./FUND MANAGER NAME] Internal Style & Formatting Guide, as well as assess the financials and commentary for accurateness and completeness. When copyediting an IR, the copyeditor should keep in the following in mind: a. Does the IR use/follow the standardized template? b. Does the IR commentary abide by all [INV./FUND MANAGER NAME] Internal Style & Formatting Guidelines? The copyeditor should check to make sure that the Tool - [INV./FUND MANAGER NAME] Internal Style & Formatting Checklist was completed by the PM and RMs. The copyeditor should use the Checklist / Guidelines as well during their review. c. Does the IR commentary follow the standardized template and all sections have been completed and ideas presented in a logical and thoughtful manner? d. Did the portfolio company achieve the activities and goals it set out for itself in the prior quarter’s IR during the current quarter? If yes, were the results captured? If not, were the barriers to accomplishment captured and explained? e. Does the [INV./FUND MANAGER NAME] commentary provide value-added analysis on the financial, operational and/or impact performance of the portfolio company? f. Generally, are you coming away with more answers than questions? 2. If “NO” is the response to any of the questions above, then a rewrite of the corresponding IR section(s) must be completed and re-copyedited. a. NOTE: The KPIs that the M&E Stage tries to achieve for the financial reporting process are: i. No more than three rounds of copyediting ii. Fewer than five errors per copyedit round per portfolio company IR 3. By T+41 the IRs are deemed final by the designated copyeditor and sent to the General Counsel for a legal review. Any comments that need to be addressed are given immediate priority and should take no more than two days to resolve. 4. By T+45 the legally reviewed and approved IRs are sent to the Investor Relations Manager for distribution to the investors. Please see the Stakeholder Engagement & Innovation Unit SOP for more details on how the IRs are distributed to investors.

Standard:

● Review prior quarter IRs to be up to date on the company’s overall performance going into the current quarter and to ensure outstanding activities and/or outlined objectives for the current quarter were achieved and/or met.

STEP 7: MAKE DECISION TO HOLD OR EXIT INVESTMENT

Starting in Year 4, the Board of Directors, SGS team and [FUND NAME] IC have been monitoring the performance of the company for a number of years and should have a view to whether the business case and assumptions of equity value growth have materialized.

Outcome:

 To determine the best course of action for the company – hold or sell – and keeping the interests of the shareholders and other stakeholders in mind.

Process:

1. Each quarter the company’s performance is reviewed against its growth plan and annual targets. 2. Starting in Year 4, the SGS and IM teams will develop their plan to either sell or hold the company. a) A similar procedure to the Final CIM creation should be followed here. b) The team should use the original Final CIM as the starting point for their recommendation and update the Final CIM based on their experience running and monitoring the business. 3. The Final CIM either in PPT or Word format should be presented to the Board of Directors, IIC, and [FUND NAME] IC and MAC for their review of the SGS and IM teams’ recommendations (either hold or sell). 4. The [FUND NAME] IC and MAC ultimately vote on the recommendation. 5. Once the vote is secured, the SGS and IM teams will begin to implement the exit recommendation. a) If the recommendation is to sell, the IM team may conduct the advisory work inhouse or contract with an outside advisor.

Standards:

 [FUND NAME] IC and MAC must vote on the exit recommendation from the IM and SGS team.  If [INV./FUND MANAGER NAME] is acting as the advisor, the Legal team must approve the process and fees associated with this support. [INV./FUND MANAGER NAME]’s role and fees must also be approved by the [FUND NAME] MAC.