ALTAMIR_REGISTRATION_DOCUMENT_2017

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

www.melita.com

1) Business description Melita is a leading cable operator in Malta offering converged telecommunications services. It supplies 99% of homes in Malta with high-speed, digital cable access and has 110,000 unique subscribers, corresponding to approximately 70% of Maltese households. Melita offers pay-TV, broadband internet access, fixed andmobile telephony, andB2B services. In addition to its leading- edge cable network, it operates its own mobile network, a data centre built to Tier 3 specifications and a Wi-Fi hotspot network across the Maltese islands. 2) Why did we invest? Melita is the leading converged fixed-mobile telecoms operator, the leader in the pay-TV and broadbandmarkets and a challenger in the mobile market. It has a technological advantage over competitors, notably a faster internet speed. Melita is one of the first converged cable operators in Europe providing fixed- mobile services aswell as triple-play (3P) andquadruple play (4P) bundles, for which consumer demand is very high. The Maltese market has robust fundamentals: a good macro outlook, a growing population and a buoyant economy with an increasing demand for B2B telecom and hosting services. There is a clear path to revenue growth, driven by (i) competitive Mobile/4P offers, (ii) demand for higher internet connection speeds, and (iii) the development of B2B activities. Meanwhile, operational efficiency improvement is expected to lead to margin uplift. The investment was made with a quality partner, Fortino, which is headed by former executives of Telenet. Fortino co-invested alongside Apax funds in Melita and in Nowo/Oni (Portugal) and helpedtobring inoperatingadvisors toworkwith themanagement team on various projects and capture synergies between Melita and Nowo/ONI. 3) How do we intend to create value? The investment thesis is to: (i) continue to invest in cable infrastructure to maintain the company’s broadband leadership,

by increasing the internet speeds delivered to customers, and to regain television market share, by improving the content and customer experience; (ii) develop Mobile market share through bundlingwith fixed services; (iii) unlockB2Bmarket potential; and (iv) improve customer care and operational efficiency. 4) What has been achieved? A new Chairman & CEO with extensive experience in telecommunications and in the cable industry was recruited in April 2016. Previously, he served as Board member and CEO of BlizooMedia andBroadband (the largest operator inBulgaria), as CEO of the German operator Kabel BWand as CEO of HanseNet. The newchief executive has implemented a number of measures, among which initiatives to improve brand perception and customer service. In 2017, the company launched a new TV platform, offering every advanced feature, andnewset-topboxes; it is alsoupgradingboth its mobile network (from 3G to 4.5G) and its fixed infrastructure. 5) How is it performing? Melitamaintained its growthmomentum in 2017by launchingnew products (a TVplatformand a “build your own bundle” quadruple play package) and increasing its subscriber base in all segments (broadband, pay-TV, mobile and fixed telephony), while reducing churn. Its recurring revenue rose by 5% and its EBITDA by 11%. After abandoning its plan to merge with Vodafone Malta, the company confirmed its objective to develop an unrivalled set of convergent services, launching its latest generation mobile network and deploying its high-speed internet service across the country. The valuation of the investment in Melita grew by €14.5m during the financial year 2017. 6) How will we crystallise value? With its subscription-based business model, strong growth, excellent operational performance, andhigh cash flowconversion, the company should be highly attractive to both financial and trade buyers.

SECTOR

COUNTRY

DATE OF INVESTMENT RESIDUAL COST IN €M

FAIR VALUE IN €M

% OF THE PORTFOLIO AT FAIR VALUE

2016

33.9

48.4

5.4

Malta

30 REGISTRATION DOCUMENT

• ALTAMIR 2017

www.altamir.fr