The following statement is provided by MVI Advisors AB, Reg. No. 559094-8864 (“MVI”, we or us) pertaining to required disclosures under the Sustainable Finance Disclosure Regulation (“SFDR”).

MVI’s Pre-Investment Approach and the identification of Sustainability risks.

For the purposes of SFDR, “sustainability risks” refer to an environmental, social or governance event or condition that, if it occurs, could cause an actual or a potential material negative impact on the value of the investment.

Consideration of sustainability risks begins during the pre-investment assessment of any investment. We believe that active identification and appropriate management of sustainability risks are fundamental to operational excellence and risk management in the long-term of any business. Therefore, all investment opportunities that are reviewed by MVI pass through multiple assessments made by the investment team, industrial advisors, investment committee and external consultants, where sustainability risks, and other related financial and business risks and potential mitigators are identified, evaluated, and taken action on.

Investment opportunities are initially mapped to one of MVI’s investment themes and an investment thesis with a full-potential plan is formulated in dialogue with management and industrial advisors. As a part of the full-potential plan, initial sustainability risks, together with financial and other business risks, are identified and evaluated through internal research and analysis made by the investment team. All risks that are deemed to be potentially material for the investment case are highlighted with corresponding risk mitigators in the material that is prepared for the Investment Committee. Any investment opportunity that is deemed by the investment team or Investment Committee to inhibit unmanageable sustainability or business risks which cannot be mitigated are excluded prior to the initiation of external commercial, financial and legal due-diligence work-streams.

External commercial, financial and legal due-diligence work streams are always initiated in the final stage of the pre-investment phase in order to confirm the investment thesis and full-potential plan. General sustainability risks and opportunities are always included in the scope of the work-streams, and potentially material risks already identified by the investment team and Investment Committee are independently followed up on and included in the scopeof the due-diligence work-streams. If necessary, additional ESG due-diligence work-streams are initiated prior to a final investment recommendation being made to the Investment Committee.

No consideration of adverse impacts of investment decisions on sustainability factors

‍While MVI is committed to continue considering sustainability risks and opportunities in our investment process, we do not currently consider adverse impacts of investment decisions on sustainability factors as defined in the SFDR. We find it, at present, not feasible to conduct a reliable due diligence on the adverse sustainability impacts as defined in the SFDR given the size of the companies MVI invests in. Instead, guidance and resources are provided to our portfolio companies as deemed necessary during our active ownership period to help build and position the companies for long-term success in line with our investment thesis. By working in close partnership with our management teams and throughparticipation on the boards of our portfolio companies, we assist our portfoliocompanies in adopting corporate governance procedures and identifying andmanaging environmental and social risks and opportunities.

Latest update: November 2024

The UNPRI framework facilitates transparent reporting of investment implications on ESG factors and in 2021 MVI became a UNPRI signatory to increase the transparency of our sustainability practices. All signatories are required to publicly report on their responsible investments each year, with MVI's first public report to be published in 2024. More information on UNPRI can be found here.