ALTAMIR_REGISTRATION_DOCUMENT_2017

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

www.skfiresafetygroup.com

1) Business description SK FireSafety Group specialises in fire safety and aeronautical safety equipment maintenance. It manufactures and maintains extinguishers, hydrants andother fire safety products anddesigns fire detection and extinction systems for critical environments. Based in theNetherlands, thegroup is the result of thecombination of several companies in the sector (ten acquisitions between 2010 and 2014) operating in the Benelux countries, in the United Kingdom and in Norway. 2) Why did we invest? The fire safety market offers robust fundamentals and recurring revenues. SK FireSafety has developed specific know-how in the sale and maintenance of critical safety equipment in both the fire safety and the aviation industries. It dominates the domesticmarket (the Netherlands), where it is positioned at the high end. The company successfully participated in consolidating this market and is well poised to pursue other acquisitions. SK FireSafety has a profitable, cash-generative business model, a large customer base and strong international growth potential in its various market segments. 3) How do we intend to create value? SK FireSafety Group aims to become a major player in fire safety in Europe. To accomplish this, it is seeking to strengthen its leadership in its historical markets and carry out targeted acquisitions elsewhere in Europe. In addition to these acquisitions, international expansion in selected operations (e.g. Products and Aviation) and robust cash generation will drive value creation.

4) What has been achieved? Since investment, SKFireSafety has expanded its service offerings in the Aviation segment through the successful acquisition of Team Aero Services in the United States. It also launched a new business in the Aviation sector in Malaysia (a joint venture with a local player). The companyhas significantly improved theoperational efficiency of its First Intervention Solutions division in Norway, whichwas in a turnaround at the time of acquisition. In the context of a difficult Oil & Gas market, SK FireSafety restructured its operations and implemented significant cost savings. The division has returned to profitability. The group has successfully rolled out its automation services across all of the regional brands of its First Intervention Solutions division in theBenelux countries, which has improvedprofitability. 5) How is it performing? In 2017, SKFireSafety demonstrated its ability to generate growth across all business units (except Oil & Gas). The rationalisation of the company and its businesses has been successful, and SK FireSafety is now back on the path to growth. Its revenue rose by 3% to €108.9m and its EBITDA was up 17% compared with 2016, thanks to the good performance of its recurring business activities and the implementation of a major cost cutting programme. The company also refinanced its debt, helping it tosignificantly reduce itsdebt-relatedcosts. It is studying variousacquisitionopportunities that couldmaterialiseduring2018. The valuation of the investment in SK FireSafety Group grew by €6m during the financial year 2017, despite a decline in valuation multiples. 6) How will we crystallise value? The company’s competitive positioning in selected market sub- segments should attract interest from strategic buyers at exit.

SECTOR

COUNTRY

DATE OF INVESTMENT RESIDUAL COST IN €M

FAIR VALUE IN €M

% OF THE PORTFOLIO AT FAIR VALUE

2014

31.5

37.0

4.1

Pays-Bas

34 REGISTRATION DOCUMENT

• ALTAMIR 2017

www.altamir.fr