NEWCODE CONSEIL

With NewCode™ the Financial Structure, e.g. the set of financial instruments issued by the company, is designed and amended under the control of governance, rather than that of the shareholders, in order to finance the Enterprise Project and its Value Sharing mechanisms, as well as, when needed, its Downside Management component. Governance therefore constantly seeks to ensure that capital employed is adequately sized, for example by avoiding over leveraging the company through excessive value distribution to stakeholders, as might occur in the current system. In NewCode ™, the remuneration of investors, including for the most junior portion of capital, is contractual rather than residual. This principle allows the enterprise to take full advantage of the competition between capital providers, including for the junior tranche. Conversely, the contractual nature of the remuneration of equity capital makes it by definition satisfactory to capital providers, otherwise they would not..

Also known as: NewCode Conseil SAS, NewCode™