Altamir - 2018 Registration document

Financial statements

Statutory Auditors’ report on the consolidated financial statements

INVESTMENT PORTFOLIO VALUATION

Risk identified

Our response

We obtained an understanding of the procedures implement by the Manager of your Company and managers of the professional private equity funds for the determination of the fair value of the investment portfolio. As part of our audit of the consolidated financial statements, and with the help of our valuation experts, our work on the main funds / investments consisted in: assessing the specific contractual documentation to each investment; asessing that the valuation method used for the main lines of the investments portfolio is appropriate; assessing, on the basis of the information provided to us, that the estimation of these values is based in particular on data and quantified assumptions that are in line with the market and / or macro-economic data available at closing date; testing, by sampling, the arithmetic accuracy of the inventory value calculations used by the Company. We also analyzed the appropriateness of the information presented in Note 7 to the consolidated financial statements.

As at December 31, 2018, the investment portfolio amounted to M€ 998.9, or 98% of the balance sheet. This item corresponds to equity instruments, hybrid security instruments, derivative instruments and loans and receivables as indicated in Note 3.2 to the consolidated financial statements. These instruments are recognized at their fair value. Loans and receivables are valued at amortized cost. Given their significant importance in the consolidated financial statements, the complexity of the models used, their sensitivity to data variations, the assumptions on which the estimates are based and the judgment required to assess their net asset value, we considered the valuation of the investment portfolio as a key audit matter.

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RESPECT OF THE SCR TAX STATUS

Risk identified

Our response

Based on interviews with Management, we acknowledged the procedures set up by the Manager to identify the regulatory changes relating to the SCR tax status and to monitor the Company’s correct compliance with the conditions. Our work consisted in assessing compliance with the criteria for eligibility for the SCR tax status, by including our tax experts.

Your Company has opted for the SCR tax status which gives it a specific legal and fiscal framework, adapted to its corporate purpose which is the management of a securities portfolio. The SCR tax status is only granted to companies that fully meet certain cumulative regulatory conditions. Given the very restrictive conditions of the SCR tax status (in particular the limitation of indebtedness and the eligibility of investments, as set out in Note 3.2.4 to the consolidated financial statement), which could, in case of non-compliance, remove the tax exemption enjoyed by the Company, we considered compliance with the regulatory conditions of the SCR tax status regime as a key audit matter.

SPECIFIC VERIFICATIONS

We have also performed, in accordance with professional standards applicable in France, the specific verifications required by laws and regulations of the information pertaining to the Group, included in the management report. We have no matters to report as to its fair presentation and its consistency with the consolidated financial statements.

REPORT ON OTHER LEGAL AND REGULATORY REQUIREMENTS

APPOINTMENT OF THE STATUTORY AUDITORS

ERNST & YOUNG et Autres was appointed as statutory auditor by the Annual General Meeting held on April 22, 1999. RSM Paris automatically replaced COREVISE as a result of a universal transfer of assets and liabilities that became final on September 29, 2018. COREVISE, previously alternate statutory auditor, had replaced the resigning firm during fiscal year 2013. As at December 31, 2018, COREVISE, who was replaced by RSM Paris, and ERNST & YOUNG et Autres were in the sixth year and twentieth year of total uninterrupted engagement respectively. Prior to ERNST & YOUNG et Autres (formerly Barbier Frinault et Autres), Barbier Frinault et Associés had been statutory auditor since 1993, date on which the Company was incorporated.

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ALTAMIR 2018

Registration document