ALTAMIR_REGISTRATION_DOCUMENT_2017

CONVERSATIONWITH THE CHAIRMAN AND CEO OF THE MANAGEMENT COMPANY, MAURICE TCHENIO

basis. The spring board for that result was established in 2016 when five major portfolio companies (Marlink, INSEEC U., Snacks Développement, THOM Europe and InfoVista) made t rans fo rma t i ona l acqu i s i t i ons . Pleasingly, each of the companies has now completed their integration processes and established platforms from which organic growth and value creation can accelerate over the coming year. In terms of major activity in 2017, Altran agreed a $2 billion acquisition of U.S.-based Aricent in November and closed thedeal at the endofMarch2018. “It was a good year for investments with 11 companies added to our portfolio from the U.S., the U.K., Asia, Israel and France.”

There were also build-up acquisitions, notably atMarlink, Unilabs andSandaya, whichwe expect will contribute to value growth over the coming year. Finally, several portfolio companies secured beneficial refinancing, which will serve to significantly reduce financial costs in 2018. Globally, we are very pleased with our diversified portfolio of 49 high-quality companies. Despite significant EBITDA growth NAV creation was lower in 2017 compared to recent years. Why was that? Net Asset Value (NAV) growth on a total return basis was 2.6% over 2017, compared to 19.2% in 2016 and 19.1% in 2015. That 2.6% figure is the lowest in eight years, which may be surprising given the 27% EBITDA growth, but the incongruity is explained by two key factors. The first is the strategic diversification of our portfolio. In 2011, when we decided to shift to a more global focus the international portfolio represented under 18% of invested cost. By the end of 2017, that had risen to 46%, providing us with valuable diversity that serves to reduce downside risk from economic cycles. But it also introduced foreign

“Our companies had a very strong 2017”

49 Growth companies, which are leaders in their sector

exchange risk that we i g h e d a g a i n s t us in 2017. As an example, our single largest investment is our stake in Marlink, whose accounts are denominated in U.S. dollars. Over 2017, the U.S. dollar weakened significantly, falling 12.5% against the euro, costing us about €0.48 in NAV per share.

27 % Weighted EBITDA growth on a net asset value weighted basis

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• ALTAMIR 2017

REGISTRATION DOCUMENT