Ferd’s Social Entrepreneurs

- or How to Make a Difference

Johan H. Andresen

American Chamber of Commerce, March 26 2009

GroupExecutive Board

FerdInvest

FerdExternal

Management

FerdReal Estate

FerdVenture

Investments •Norwegian equities

•Swedish equities

•Hedge funds•Mutual funds•Private Equity funds

•HerkulesPrivate Equity Fund I and II

•HerkulesCapital (40%)

•Direct investments

•Energy Ventures Fund I, II and III

•Energy Ventures AS (25%)

•Real Estate Development

•Real Estate Investments

•Real Estate Management

Business areas

Ferd Capital

• Elopak (100%)• Swix Sport

(100%)• Aibel (~37%)• Kongsberg

Automotive (~17%)

Ferd’s Business Areas

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Images of Ferd

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• Industrial and financial investment company

• Turnover: ca. NOK 24 billion*

• Employees: ca. 20,000**Incl. 50+% owned companies

Ferd – January 2008

7,48,3

10,912,5

15,4

12 %

28 %

15 %

22 %

0

2

4

6

8

10

12

14

16

18

2 0 0 3 2 0 0 4 2 0 0 5 2 0 0 6 2 0 0 7

NOK mrd.

0 %

5 %

10 %

15 %

20 %

25 %

30 %

Value-adjusted equity Return on capital%

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Corporate mission, vision and values

Corporatevalues

Operationalvalues

VISIONWe will create enduring value and

make a lasting impression

POSITIONAn owner and partner who seeks newavenues for turning bright ideas into

sound businessCapital

Networking

Expertise

Teamwork

Spirit ofAdventure

Credibility

Long-term viewMISSION

Ferd will focus on being a pro-activelong-term owner of strong companieswith international potential as well as

operating as a financial investor, making use of its core expertise in finance, business development and

networking

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Social Entrepreneurs – Who are they?

• People with innovative solutions to society’s most pressing social problems

• Business methods for a ”double bottom line”

– A social and a financial bottom line

• A desire to change perceptions and thereby changingentire systems

• Visionaries and realists – implementation of the visionbefore anything else

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International Social Entrepreneurs- some examples

• Gustave Moynier & Henri Dunant (Red Cross)

• Robert Baden-Powell (The Scout movement)

• Eglantyne Jebb & Dorothy Buxton (Save the Children)

• Mary Gordon (developed Roots of Empathy, ROE, a class-room based

development program for children as young as three years old, Canada, spread

over great parts of the world)

• Kurt Hahn (founder of Atlantic College, Outward Bound, etc.)

• Muhammad Yunus (Grameen Bank)

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Norwegian Social entrepreneurs- some examples

• Natteravnene Dag Halgard og Gudmund Johnsen, Oslo Police Dept.

• =Oslo Vibeke Omberg

• ER–bedrift Lise Aasmundstad and Wenche Wærner

• Gatejuristen Cathrine Moksness, Kirkens

Bymisjon and Fransiscushjelpen

• Right to Play Johann Olav Koss

• Fretex Salvation Army

• Mother Courage Bitten Schei

• Forskerfabrikken Hanne Finstad

• Ungt Entreprenørskap Several ministries and organisations

• Civita NHO og Norwegian Shipowners

Association

• NMI Ferd & Norfund

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Why do we choose Social Entrepreneurs?

• A further possibility for Ferd to move towards ourvision and to live up to our values

• Ferd’s human resources and expertise areparticularly effective for Social Entrepreneurs, and wemay therefore have stronger impact than otherinvestors

• This could enable my successors to see newopportunities with, and effects of, their ownership

Ferd’s vision: ”We will create enduring value and make a lasting impression”

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What is Ferd’s contribution?

Exactly the same as we can and do contribute to other companiesand organisations:

Our operational values;

– Expertise• Strategy• Business development• Finance

– Networking• Local & international, especially Northern Europa• Covers many industries and services• Private and public sector

– Capital• Competent and demanding• Active ownership

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Which “sectors” to focus on

• Children and Youth

– Projects which creates a new future – instead of simplyrepairing a past

• Education & Empowerment– ”Education is the most powerful weapon you can use to change the

world” – Nelson Mandela

”They (The Social Entrepreneurs) build or work in organisations which

enables people, especially children and youth to develop and expand their

ideas, and work towards their own goals”” (Extract JHA whitepaper)

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Criteria for selecting our involvement

• A Social Entrepreneur/team ”with Ferd’s values”

• May really make a difference

• May be scaled and preferably exported

• Measurable results/savings/impact

• Ferd can contribute with expertise and network

• Ferd employees are willing to use time on the project

• Ferd can bring in other partners (public or private)

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Examples of what we do not want to get involved in:

• Projects which clearly are public responsibilities: – Unless we can contribute with creative solutions which ensures public challenges a stronger focus,

making the government to take responsibility (ER-bedrift)

• Cases which obviously others should take responsibility for:– (Example: A legal firm & Gatejuristen)

• Large established organisations (Example: Save the Children)

– Unless these launch independent projects (Example: Kirkens Bymisjon and Gatejuristen)

• Established cultural activities (Example: music festivals, museums, etc)

• Medical research– Unless we already are involved, i.e. Joh. H. Andresens Medisinske Fond or the project can be

defined as pioneering)

• Micro finance beyond present involvements (NMI and Kolibri Kapital)

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Geographic focus area

• Norway

• International if:

– The concept is known by us (JA-YE Europe)

– The social entrepreneur is Norwegian and/or is well known by us (Svein Wilhelmsen in Basecamp Explorer)

– If we can scale a concept from Norway to othercountries (”Enterprise Without Borders” – A UE Norge export article)

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Ferd’s Social Entrepreneurs: Capital & Mandate

• 8-12 running engagements in year 5 (2013)

• Beyond year 5:

– 1-3 new engagemens per year

– exit from 1-3 engagements per year

• Yearly investments of up to NOK 10 mill. over a 5 year periode (Including current engagements)

• No engagement exceeding 20 % of total ”invested” capital

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• Junior Achievement - Young Enterprise NOK 1 million/year

– Contribution to EM, 10 year anniversary etc. NOK 2 mill.– Guarantee (EU’s contribution to JA-YE Europe) EUR 100,000/year– Responsible: JHA, Martine, Annar (Oslo),

Bjørn, (Oppland)

• ER–Bedrift - Lise Aasmundstad – Student company (UE program) for LAR pasients– Guaranteed running expenses for 3 years NOK 1 million/year– Responsible: JHA, Martine

• Asfalt – Gatemagasinet i RogalandNOK 500,000/year

– Street magazine to be launched in April 2009– Maggi Hatløy v/Kirkens Bymisjon Stavanger– Responsible: Kjetil Sævareid, Aibel

Ferd’s Social entrepreneurs (1)

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Ferd’s Social Entrepreneurs (2)• Forskerfabrikken - Hanne S. Finstad NOK 800,000/year

– Courses and training in science(exercises and experiment) for students and teachers

– 3 year funding (2009–2011)– Responsible: Ole Petter Trovaag, CTO, Elopak

• Chandelao, India - Basecamp Explorer USD 90,000– Artisan Workshop for women + school bus– Responsible: Kristin G. Andresen

• NMI – Norwegian Microfinance Initiative NOK 75 mill.– NOK 600 mill fond (Global and Frontier)

launched in 2008– Partners: Norfund, Storebrand, Vital and KLP– Responsible: JHA

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Social Entrepreneurs– some unanswered questions

• ”Deal-flow”/supply of projects in Norway– Is it large enough and good enough?– Are there enough social entrepreneurs with business

sense? – Will a sufficent number of social projects be scaleable?– Can international ideas be implemented in Norway?

• ”Choice of Business and Reaction of Authorities”– If a lot of the social entrepreneurs choose services in the

public domain as their focus, will the governmentcontribute, take over or compete with the company when it shows viability and results?