Altamir - 2018 Registration document

CONVERSATIONWITH MAURICE TCHENIO, CHAIRMAN AND CEO OF THE MANAGEMENT COMPANY

48 growth companies, which are leaders in their sector

25 % weighted EBITDA growth on a residual cost basis, of which 15% organic

“2018 was a very active year”

What were the key events for the investment portfolio over 2018? 2018 was a very active year. We set an all-time record for investments of €154m, including eight new investments, for a total of €133m. It was also a significant year in terms of divestments, with a total of €156m, our third-highest amount ever. Together, that meant we turned over almost 20%of our portfolio. Importantly, we divestedmostly our least- performing assets, which should be reflected in future performance. The third key element was the 25% average EBITDA growth of our portfolio, of which 15% was organic and 10% due to build-up deals. That performance includes, for the first time, the entire measurable portfolio and not only the 20 largest companies, which differentiates us from many of our peers, who may arrive at similar growth but typically measure only their largest assets.

The NAV growth figure of 3.8% is higher than last year, but still at the lower end of recent years.

Value creation totalled €69.5m in 2018, which translated into 7.8% gross portfolio return, fromwhich 4%was deducted for costs to arrive at 3.8%. This includes €75.5m of unrealizedgains, a small positive exchange rate impact and a€13.8m loss on the sale of the company Nowo Oni. The remaining divestitures had a net effect very close to zero, with gains balancing out losses, which was a good result given that we divested underperforming assets. Looking at unrealized gains, we posted a strong performance, notably from INSEEC U. and Melita, while two companies, Altran and THOM Europe, contributed €53m of negative value due to a decrease in valuation multiples. That was disappointing, but we remain convinced that both investments will deliver over the longer term, and we have already seen Altran rebound strongly from its year-end valuation dip. Such fluctuations are a natural part of private equity investment and the reason that we take the long-term view in assessing our performance. NAV growth was 2.6% in 2017 and 3.8% in 2018, but it was 19.1% and 19.2% in the prior two years. Over five and ten years we have returned respectively 11.1% and 10.4% NAV growth.

“ We invested in 8 new companies, for a total amount of €133m. ”

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ALTAMIR 2018

Registration document