Altamir - 2018 Registration document

3

Financial statements

Statutory Auditors’ report on the statutory financial statements

VALUATION OF LONG-TERM INVESTMENTS IN THE PORTFOLIO ACTIVITY, EQUITY SECURITIES AND RECEIVABLES RELATED TO EQUITY SECURITIES

Risk identified

Our response

We obtained an understanding of the procedures implemented by theManager for the determination of the inventory value of the long- term investments in the portfolio activity, equity investments and receivables related to equity investments (hereinafter investment portfolio). As part of our audit of the financial statements, and with the help of our valuation experts, our work on the main funds / investments consisted in: assessing, that the valuation method used for the main lines of the investments portfolio is appropriate; assessing, based on 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; assessing the specific contractual documentation to each investment; 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 2.4 to the financial statements.

As at December 31, 2018, long-term investments in the portfolio activity, equity investments and receivables related to equity investments amounted toM€566.7, M€61.6andM€33.5, respectively, in net value. They are accounted for at their acquisition value as indicated in Note 2.1 to the financial statements. They may give rise to depreciation but cannot be revalued. When inventory value of the security of the portfolio activity, equity security or related receivable is lower than its acquisition value, a provision for depreciation is recorded at the amount of the difference. As indicated in Notes 2.1.3 and 2.1.4 to the financial statements, the inventory value of these securities is based on complex valuation models and requires the exercise of Management’s judgment. Given their significant importance in the Company’s financial statements, the complexity of the models used, their sensitivity to data variations, theassumptions onwhich theestimates arebasedand the judgment required to assess their net asset value, we considered the valuation of these assets as a key audit matter.

RESPECT OF THE SCR TAX STATUS

Risk identified

Our response

Based on interviews with Management, we acknowledged the procedures set up by theManager to identify the regulatory changes relating to the SCR tax status and to monitor the Company’s correct compliance with the conditions. As part of our audit of the financial statements, 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 themanagement of a securities portfolio. The SCR tax status is only granted to companies that fully meet certain cumulative regulatory conditions. Given thevery restrictive conditions of theSCR tax status (inparticular the limitation of indebtedness and the eligibility of investments, as set out in Note 3.2.3 to the financial statements), which could, in case of non-compliance, remove the tax exemption enjoyedby theCompany, we considered compliancewith 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.

INFORMATION GIVEN IN THE MANAGEMENT REPORT AND IN THE OTHER DOCUMENTS WITH RESPECT TO THE FINANCIAL POSITION AND THE FINANCIAL STATEMENTS PROVIDED TO THE SHAREHOLDERS We have no matters to report as to the fair presentation and the consistency with the financial statements of the information given in the management report and in the other documents with respect to the financial position and the financial statements provided to the shareholders. We attest that the information relating to payment terms referred to in article D. 441-4 of the French Commercial Code ( Code de commerce ) is fairly presented and consistent with the financial statements.

148 Registration document ALTAMIR 2018

www.altamir.fr