Altamir - 2018 Registration document

Business description and activities

Presentation of the Company

1

www.marlink.com

1) Business description Marlink is one of the world’s leading providers of satellite communication services. The company serves the world’s maritime sectors, in addition to thousands of users in themining, energy and humanitarian sectors who operate in challenging environments and are in need of highly reliable mobile and fixed connectivity services. Operating in 14 countries across Europe, Asia, the Middle East and the Americas, Marlink distributes its products and services either directly or through an extensive network of approximately 400 re-sellers worldwide. 2) Investment rationale Marlink is a world leader in commercial satellite communication services. It encompasses the commercial division of Vizada, a former portfolio company of Apax/Altamir sold to Airbus Group in 2011. The company mainly operates in the maritime business sector, where it is a global leader, but it also offers terrestrial solutions. Revenue expansion is expected though increasing exposure to the fast-growing and attractivemaritime Ka- andKu- band VSAT market. Marlink is well positioned to capture market growth through (i) an exhaustive product portfolio, (ii) a global distribution network, and (iii) a large and diversified customer base. 3) Sources of value creation Our investment thesis is basedon several drivers of value creation: (i) accelerating VSAT delivery; (ii) developing value-added services beyondconnectivity to increaseARPU(AverageRevenue Per User) and customer retention; (iii) focusing on Land core verticals (onshore Oil & Gas, Mining, Media and Humanitarian); (iv) driving profitability through operational efficiencies and the outsourcing of installation and maintenance activities; and (v) consolidating a highly fragmented industry. 4) Achievements Marlink actively pursued its strategy to grow, both organically and through acquisitions. In November 2016 (6 months after its

acquisitionbyApax), Marlinkbought the Italian companyTelemar, creating the world’s leading communications, digital solutions and servicing group in themaritime sector. The newgroup serves more than one in three vessels operating globally. In 2017, the company acquired Palantir, the Norwegian specialist in onboard IT solutions, and two service providers: RadioHolland (400 VSAT-installed vessels in the shipping segment) and LiveWire (45 VSAT-installed vessels in the yachting segment). In 2018, Marlink completed the acquisition of OmniAccess, the leading provider of broadband connectivity services and solutions to the superyacht and high-end boutique cruise line customers. Marlink now operates as the worldwide leader in maritime VSAT services with annual sales of close to $480m, about 1,000 employees and an installed base of more than 4,700 VSAT vessels. 5) Performance Marlink continued to accelerate the development of higher- margin VSAT services, while the legacy, MSS-technology-based business continued to decline softly. Telemar was successfully integratedandpositively contributed toMarlink’sVSATexpansion through the acquisition of new subscribers and the migration of existing subscribers to Marlink’s network. The Land division has been demonstrating very solid performance and strong sales momentum following the recruitment of a newmanager in 2017. In2018, Marlinkgeneratedpositiveorganic revenuegrowth thanks to the strong performance of Maritime VSAT and promising performance in the Enterprise division; the EBITDA double-digit growth trend remains in line with previous years. 6) Exit In the context of ongoingmarket consolidation, Marlink could be a good candidate for a strategic buyer seeking to reinforce its presence in the maritime sector. Marlink could also be of interest to a financial investor.

DATE OF INVESTMENT

PORTFOLIO AT FAIR VALUE

SECTOR

COUNTRY

RESIDUAL COST

FAIR VALUE

2016

€ 70.3 m €

133.6 m

13.4 %

F R A N C E

25

ALTAMIR 2018

Registration document