ALTAMIR_REGISTRATION_DOCUMENT_2017

Presentation of the Company 1 PRESENTATION OF THE COMPANY AND ITS ACTIVITIES

SNACKS DÉVELOPPEMENT

1) Business description Snacks Développement is one of Europe’s leading private-label savoury snacks manufacturers. The company has developed its expertise in extruded and stackable snacks and crackers over more than 20 years. Following the 2016 acquisition of Kolak in the UK, Snacks Développement now produces more than 800 SKUs for the leading food retail chains inEurope, with a focus onFrance, theUK, Spain, Italy and Benelux. Its annual production is 60,000 metric tonnes. 2) Why did we invest? SnacksDéveloppement is theundisputed leadingFrenchproducer of private label savoury snacks. The company produces superior quality products, has state-of-the-art production facilities and has had proven international successes. Snacks Développement is committed to continuously launching new products through a structured innovation process. The quality of its products stands out in most blind panels. Thecompanyoperatesonalarge,growingandprofitableEuropean savoury snacksmarketwith (i) commonproduct categories across countries (e.g. stacked crisps), (ii) growing penetration of private label products and (iii) barriers to entry. 3) How do we intend to create value? The investment thesis consists increatinga leadingEuropean-wide private label player of savoury snacks. Snacks Développement aims topursue its growth inFrance and the rest of Europe, through intensive product innovation and investment in manufacturing facilities. The company also seeks to grow through acquisitions in Europe.

4) What has been achieved? Since investment, Snacks Développement has focused on a number of value creation drivers. It has increased sales in France through the development of new product categories and the penetration of new distribution channels. International sales have also grown, thanks to the development of stacked crisps volumes sold to selected European retailers. In particular, Snacks Développement signed a contractwith the largest Spanish retailer and, more recently, with a large local Italian company. InOctober 2016, the company completed the acquisition of Kolak, one of the main producers of crisps and snacks in the UK with sales of about €140m, which expanded the company’s crisps and popcorn product range. The new group employs 1,400 people at six production sites. 5) How is it performing? The company successfully launched its first stacked crisps production line for the UKmarket. On a pro forma basis including the acquisition of Kolak, revenue for the 2017/18 financial year (FYE 31 January) should reach €267m, up 2.5% compared with the previous year. Profitability is expected to be down, because (i) raw materials prices have risen and (ii) ramping up the new production line and implementing a logistics outsourcing solution have generated exceptional costs. For the 2018-19 financial year, the company projects an additional growth in sales of about 7%. The valuation of the investment in Snacks Développement declined by €11.8m during the 2017 financial year. 6) How will we crystallise value? The company’s leadership across Western Europe and growth profile will be highly attractive to both trade and financial buyers.

SECTOR

COUNTRY

DATE OF INVESTMENT RESIDUAL COST IN €M

FAIR VALUE IN €M

% OF THE PORTFOLIO AT FAIR VALUE

2013

37.9 70.1

7.8

France

28 REGISTRATION DOCUMENT

• ALTAMIR 2017

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