APAX_ANNUAL_REPORT_2017

Portfolio performance

Operating performance Portfolio companies posted a 18% increase in their aggregate EBITDA. This performance can be benchmarked against the aggregate EBITDA of the 35 non-financial companies included in the CAC 40, which posted a 5% increase in their aggregate EBITDA. strong operating performance

Debt ratios The debt multiple of the portfolio is represented by the ratio of total net debt to EBITDA.

MidMarket The average debt multiple of the portfolio decreased at 4.2x at the end of 2017, against 4.7x at the end of 2016. This decrease of the total net debt is mainly due to the exit of Unilabs (which had a total gross debt of nearly €900m) partially compensated by the new transaction achieved in 2017, CIPRÉS Assurances. The LBO debt multiple averages 2.9x, while the average operating debt multiple is 1.3x. Regarding the repayment schedule, amortising debt (tranche A) represents 4.3% of the total LBO debt, while the remaining 95.7% is bullet debt. The portion of LBO debt with maturity dates prior to December 2019 represents 5.7% of the total.

Development The average debt multiple of the portfolio decreased from 2.4x in 2015 to 2x in 2017. This decrease is mainly due to (i) two exits in 2016 and 2017 with 4.2x leverage ratio in average and (ii) cash flow generation, partially compensated by the new transactions achieved in 2016 (Silvya Terrade Group, JVS Group and Nelite) and 2017 (Rautureau Group and Squad) with 3.7x net debt in average at the closing date.

81%

70% 50% 30% 10% -10%

20%

18%

-5%

11%

-1%

9%

3%

6%

5%

4%

2%

2013 vs. 2012 2014 vs. 2013 2015 vs. 2014 2016 vs. 2015 2017 vs. 2016

5 years combined

Apax Partners’ portfolio companies

DEBT RATIOS (net debt/last 12 months EBITDA)

CAC 40 companies (excluding financial institutions)

4.7

4.4

Gross portfolio return Gross portfolio return (GPR) measures the change over the year in portfolio valuation, including both realised and unrealised value. It is calculated on a mark-to-market basis and is expressed as a percentage of the opening portfolio value.

4.2

In 2017, although EBITDA grew by 18% in portfolio companies, Apax Partners generated a GPR of 4% across all its funds, mainly due to the decrease in comparable companies’ valuation multiples in certain sectors.

3.8

3.7

2.5

2.4

2

2

2

December 2013

December 2014

December 2015

December 2016

December 2017

MidMarket

25%

23%

20%

Development

17%

4% *

2015

2014

2016

2013

2017

* Combination of MidMarket and Development activities.

18 I APAX PARTNERS I Annual report 2017

Annual report 2017 I APAX PARTNERS I 19