ALTAMIR_REGISTRATION_DOCUMENT_2017

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PRESENTATION OF THE COMPANY AND ITS ACTIVITIES

Comments on the financial year

1.4.8 VALUATION POLICY AND METHOD

STATUTORY BALANCE SHEET

The balance sheet total at 31 December 2017 was €646.2m vs €578.3m at 31 December 2016. Balance sheet assets consistedof €457m in portfolio investments heldas non-current assets, €136.7m inequity investments, €24.2m in related receivables, €1m in other non-current financial assets, €11.3m in other receivables, €15.0m in marketable securities and €1.3m in cash and cash equivalents. Balance sheet liabilities consisted principally of €600.7m in shareholders’ equity, a carried interest provision of €11.5m for Apax Partners SAS and Apax Partners LLP (the management companies managing the Apax France VIII-B, Apax France IX- B, Apax VIII LP and Apax IX LP funds), €189k in trade payables and sundry financial liabilities, €9.1m in financial liabilities corresponding to the credit lines used as of 31 December 2017, and €24.7m in debts to the Apax France IX-B fund. Off-balance-sheet commitments amounted to €327m: „ a €16.9m residual commitment to the Apax France VIII-B fund; „ a €228.7m residual commitment to the Apax France IX-B fund; „ a €74.2m commitment to the Apax IX LP fund; „ €0.5m in direct investments and €6.2m in guarantees on securities sold.

The portfolio companies, whether held directly or via an Apax fund, are valued by the funds’ management companies, reviewed by the funds’ Statutory Auditors, and finally approved by the funds’ Board of Advisors. Altamir’s policy is to adopt the valuations made by the funds’ management companies. Before valuations are finalised, they are reviewed by Altamir Gérance’s management, Altamir’s Statutory Auditors, the Audit Committee of Altamir’s Supervisory Board and the Supervisory Board in general.

VALUATION METHOD

The Apax fund management companies value their portfolios based on the principles of fair value, in accordance with International Private Equity Valuation (IPEV) recommendations. The Apax fund managers have always pursued a conservative valuation policy, as can be seen in the uplift historically generated from divestments (selling price higher than the last valuation made before the divestiture).

Unlisted companies are valued every half-year, and listed companies are valued every quarter.

For unlisted investments held for over one year

For unlisted investments held for under one year

For listed companies

Valuations are generally based on a sample of peer-group multiples (listed companies and recent transactions). Apax Partners France may apply a downward adjustment* of up to 30%. In principle, Apax Partners LLP does not make any adjustments, since it invests in larger companies.

Apax Partners France values companies at cost, except under specific circumstances. Apax Partners LLP usually values growth capital investments close to cost; buyout investments may be revalued from the first day that they are held.

Valued at the last listed price of the period, except in the event of restrictions in tradability or other exceptional circumstances.

* This downward adjustment corresponds to a liquidity adjustment of 0-30% based on performance quality, the position of Apax Partners/Altamir in the capital (minority vs majority, exit rights, etc.), the level of mergers & acquisitions activity in the sector, management influence and weighting at exit, and the liquidity of comparable companies.

1.4.9 THE COMPANY’S FINANCIAL RESOURCES

authorised amount of 10% of its statutory net book value, which was €60mas of 31 December 2017. As of 31 December 2017, €9m of the credit was drawn.

As of 31 December 2017 Altamir had authorised lines of credit totalling €60m, vs €39m at year-end 2016. This increase resulted from the renegotiation of credit lines in 2017, which led the Company to raise its borrowing capacity to the maximum

68 REGISTRATION DOCUMENT

• ALTAMIR 2017

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