Formulafirst : Monats-News November 2021 Englisch

Monthly Report November 2021

Stock markets Weak

Performance Underperformance

Investments Slightly increased cash position

Outlook Higher

Markets

For the U.S., containing China is at the top of the foreign policy priority list. This conjures up the end of globalization, severe losses of prosperity, and failure in the fight against climate change. All of this has widened the gap between the United States and Europe. Unlike America, Europe has no hegemonic position to defend. With reference to the common "Western community of values," however, Europe sees itself called upon by America to take the field against China as a deputy sheriff on its side. As once against the Soviet Union, this confrontation with China is about freedom or servitude. If Europe wants to preserve external and internal peace and its prosperity, it must free itself from America's restraint. If it follows Washington in the confrontation with China, it will only increase America's willingness to engage in conflict with China. It can only escape the danger of war and the loss of prosperity to which it exposes itself as a stooge of the USA by emancipating itself from the "big brother". Only in this way is there a chance of convincing the latter that it is better for humanity as a whole, as well as for him, to say goodbye to his hegemonic policy, to share power, to accept a multipolar world order and a peaceful coexistence of different political systems. Europe's emancipation from the United States does not mean abandoning the transatlantic partnership. It only means genuine partnership in which the partners are free to choose its scope.

Performance

In a weak market environment, the Net Asset Value of Formulafirst Ltd. slid by 3.86% in November. The MSCI Europe lost 2.62%. The resulting underperformance of Formulafirst Ltd. compared to the MSCI Europe is 1.24 percentage points for the month of November 2021. Since the beginning of 2021, an underperformance of 16.29 percentage points has resulted.

Investments

While Fielmann's sales of spectacles increased by 43% in Q2, consolidated sales rose by 60%. This is based on very pleasing order values and operational leverage! In Q3 and Q4 2021, it will not be possible to report such high growth as in H1, as Q3 and Q4 in 2020 were also already very good. Fielmann will continue to achieve good order values. While EUR 37.1m was invested in H1, it is expected to reach EUR 60-70m in H2. In H1, approx. 15 branches were opened, in H2 this figure is expected to rise to approx. 30. In Prague, the first branch in the Czech Republic is developing very well. They achieve higher order values there than in Germany. In addition, there are no optical chains in the Czech Republic. While Fielmann generated consolidated sales of EUR 790 million in H1, the guidance for H2 is for sales of between EUR

0.9 billion and EUR 1 billion. Holcim's sales increased by 13% in Q3, mainly due to the acquisition of Firestone Building Products. On a like-for-like basis, sales increased by 5%. Holcim was able to more than compensate for higher energy prices in Q3 with price adjustments. EBIT guidance was raised for the third time in 2021. The portfolio was also streamlined in Q3 with the sale of the cement business in Brazil, Zambia, and Malawi. Holcim will focus on less capital-intensive companies such as Firestone. The roofing systems and building envelope business is growing at double-digit rates.

Outlook

Despite the tapering announced in the U.S., there is no sign of a liquidity squeeze that would be dangerous for the stock market. On the contrary, the liquidity overhang created in the past two years has led to high liquidity in the U.S. financial system and a high willingness of banks to lend. There should therefore be little in the way of a continuation of the U.S. economic upswing after the pandemic-related brake on the economy has gradually been lifted. Accordingly, the trend toward new stock index highs for the year should continue in the USA. In particular, there should be pent-up demand in the area of value stocks.

Performance as of November 30, 2021

Net Asset	November			Since
Value	2021	2021	3 years	inception
CHF 31.92	-3.86%	-0.25%	14.82%	4.78% p.a.

Share price development as of November 30, 2021 (indexed)

180

160

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120

100

90

80

70

60

50

40

35

Jan 08 Jan 09 Jan 10 Jan 11 Jan 12 Jan 13 Jan 14 Jan 15 Jan 16 Jan 17 Jan 18 Jan 19 Jan 20 Jan 21

Formulafirst (CHF) MSCI Europe Index (EUR) SO Index (EUR)

Breakdown by sectors

Materials 30.4%

Healthcare 23.5%

Industrials 13.0%

Consumer discretionaries 9.9%

IT 7.8%

Consumer staples 3.8%

FX 2.6%

Cash 9.0%

Country Breakdown

Germany 50.5%

Switzerland 49.5%

The largest positions

Swatch Group AG								9.9%
Wacker Chemie AG							9.6%
SGS SA						8.7%
Forbo Hold. AG					8.5%
SAP SE				7.8%
Fuchs Petrolub SE		7.4%

This information is not an offer to purchase or subscribe to shares in Formulafirst and may not be circulated in any jurisdictions where it violates any applicable laws or regulations, including and without restriction in the United States of America. While the information given is considered reliable, Formulafirst, respectively 2trade group ltd. don't guarantee that it is complete or accurate. Opinions and estimates may be amended without notice. Past performance is not an indication of future performance.

Formulafirst - investing in "smart owners"

Formulafirst: the concept

Investment idea

Experience shows that owners generally invest more successfully than em- ployees. The Investment company Formulafirst focuses on Smart Owners as they are known. The investment universe consists of owner-managed companies in Central Europe (D-A-CH).

Owner-managed companies and those that are controlled by owner-oriented groups of investors are generally distinguished by their consistent strategy of long-term and sustainable growth. Since owner-managers have a substantial share of their wealth and, in most cases, of their working time invested in the company, their strategic business orientation includes goals such as maintaining the company's independence, a smooth transfer to the next generation as well as safeguarding and growing the company's assets. The long-term perspective, in some cases spanning several generations, is a major reason why these companies are more focused on their long-term strategic positioning rather than on the short-term maximization of returns.

Investment criteria

For owner-managed companies to be included in the investment universe of Formulafirst, the following conditions must be met: a) headquarters in Central Europe (Switzerland, Austria and Germany), b) listed on an regular stock exchange, c) minimum market capitalization of EUR 100 million, d) managed by owner-managers holding at least 15% but no more than 75% of voting rights. The universe of owner-managed companies from which the best stocks are picked by Formulafirst for investment includes the 50 such companies with the highest market capitalization.

The companies selected form the basis for Formulafirst's investments.

Investment strategy

Made up of the 50 owner-managed companies the investment universe is screened by a thorough fundamental analysis in a primarily "bottom-up" approach and the most promising stocks are identified.

Formulafirst invests in equities convertible instruments, options (manag- ing existing positions), futures (to hedge currency and market risks) and shares of holding companies and funds. Investment exposure is 100% of company assets. The investment horizon is long-term and the selection of portfolio positions is limited to a reasonable number. The size of individual investments may not ­exceed 10% of the portfolio when purchased (cost). The investment style is primarily based on the "value" approach and investments are made in an anti-cyclical manner. The maximum sector weighting in the portfolio should not exceed 30%.

NAV and performance calculation

The Net Asset Value (NAV) of the Company is equal to the total assets less total liabilities of the Company (determined on the basis of International Financial Reporting Standards, consistently applied). The NAV per share is calculated by dividing the NAV by the amount of outstanding shares of the Company on the calculation day of the NAV. The monthly, year-to-date as well as the 3 year performance are calculated by dividing the actual NAV per share by the NAV per share a month ago (CHF 33.20), at the previous year end (CHF 32.00) respectively 3 years ago (CHF 27.80). The performance since inception (18 December 2002) reflects the annualized yield since 18 December 2002 till today, using a start NAV of CHF 13.-.

Smart Owners consistently outperform the market (indexed)

30.11.2021

700

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80

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60

50 1998 2000 2002 2004 2006 2008 2010 2012 2014 2016 2017 2018 2019 2020 2021

Smart Owners Index (EUR) MSCI Europe Index (EUR)

Company details
Company:	Formulafirst Ltd., British Virgin Islands
Board of Directors:	Derek P. Baudains, Paul Broxup,
	Markus Gresch
Investment manager:	2trade group ltd., Zug
Management team:	Sammy Matter, Martin Treffer,
	Daniel Biedermann
Auditors:	PricewaterhouseCoopers, Zürich
Corporate structure:	Public limited company
Inception:	18.12.02
Type of stock:	bearer shares
Shares outstanding:	395,768
Market capitalization:	CHF 13 mn
Listing:	Swiss Exchange SIX
Fees:	Management fee of 1.5% p.a.,
	Performance fee 20%
	current hurdle at CHF 34.24
Security number:	146 29 83
Reuters:	FFI.S
Bloomberg:	FFI SW Equity, FFI SW Equity NAV
Net asset value:	Website daily, Wednesday/Saturday in FuW
	(Finanz und Wirtschaft)
Address:	2trade group ltd.
	Baarerstrasse 2, CH-6300 Zug
Investor relations:	Dynamics Group Ltd.
	Alexandre Müller
	Tel.: [phone]
Internet:	www.formulafirst.vg
E-mail:	[e-mail]