ALTAMIR_REGISTRATION_DOCUMENT_2017

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

www.amplitude-surgical.com

1) Business description Founded in 1997 in Valence, France, Amplitude Surgical is a leading French player on the global surgical technology market for lower-limb orthopaedics. Amplitude Surgical develops and markets high-end products for orthopaedic surgery covering the main disorders affecting the hip, knee and extremities (foot and ankle). Amplitude Surgical develops, in close collaboration with surgeons, numerous high value-added innovations inorder tobest meet the needs of patients, surgeons and healthcare facilities. A leadingplayer in France, Amplitude Surgical is developing abroad through its subsidiaries and a network of exclusive distributors and agents that distribute its products inmore than 30 countries. AmplitudeSurgical operates on the foot andanklemarket through its Novastep subsidiaries in France and the United States. The company has nearly 370 employees and is listed on Euronext Paris, compartment B. 2) Why did we invest? The structure of the healthcare market, which has favourable and sustainable fundamentals, makes it an attractive sector. Competition remains relatively fragmented in France, making it possible to acquire new market shares in order to build a strong European alternative to the major US groups. Amplitude has a solid position: it holds around 10%of the hip implantmarket (no. 4 in France in 2015), with its market share continuing to rise, and around 15% of the knee prosthesis market (no. 2 in France). It focuses on quality of service and product development in close collaborationwith leading French surgeons. It also has significant international growth potential, supported by the high-quality reputation of French orthopaedic prostheses. Amplitude’s differentiated, flexible and highly profitable business model relies on the outsourcing of targeted skills (manufacturing and distribution) and on the strict control of strategic skills (R&D and quality control). Olivier Jallabert, an entrepreneur with exceptional qualities, has surrounded himself with a top-tier management teamwithproven experience in largeUS companies. 3) How do we intend to create value? International expansion, the development of new products and differentiated state-of-the-art technology are expected to generate robust growth. The company may also consider

accretive acquisitions to strengthen its position on its domestic and international markets. 4) What has been achieved? Since investment, Amplitudehas accelerated itsgrowth inAustralia and Brazil and opened subsidiaries in Belgium, Switzerland and SouthAfrica. Thecompanyalso launched the saleof anewproduct line in the fast-growing foot and ankle segment in France and the United States. Amplitude Surgical was listed on the Euronext Paris stockmarket in June 2015. Its market capitalisation was €235m, based on the IPOprice of €5.00 per share. The transaction totalled €106mand includedamajor capital increase (€50m) tosupport thecompany’s international development, particularly in theUnited States, and a partial disposal of shares held by existing shareholders. More recently, Amplitude has obtained authorisation to market its hip and knee implants in the United States, the world’s largest market. 5) How is it performing? Amplitude Surgical once again experienced robust growth during the 2016/17 financial year (FYE 30 June), with sales of €93.4m and EBITDA of €15.5m, up 15.6% and 15%, respectively, compared with the previous year. The company benefited from strong performances from its international subsidiaries, particularly inEurope andAustralia, and fromNovastep’s sales performance. Novastepprovides innovative solutions for foot and ankle surgery and now represents 7%of the company’s revenues. In the first sixmonths of the 2017/18 financial year, the company’s sales rose by 6.6%comparedwith the year-earlier period (up 8.1% at constant exchange rates). Owing to the decrease in its share price, the valuation of our investment inAmplitude declined€1.7mduring the 2017 financial year. 6) How will we crystallise value? The company’s sound business model and strong growth profile should attract interest frommarket investors.

SECTOR

COUNTRY

DATE OF INVESTMENT RESIDUAL COST IN €M

FAIR VALUE IN €M

% OF THE PORTFOLIO AT FAIR VALUE

2011

14.0

22.3

2.5

France

36 REGISTRATION DOCUMENT

• ALTAMIR 2017

www.altamir.fr