Altamir - 2018 Registration document

1

Business description and activities

Presentation of the Company

www.thomeurope.com

1) Business description THOMEurope is a leading jewellery retailer in Europe. The Group was created in 2010 from the merger of two leading French jewellery retailers, Histoire d’Or and Marc Orian. Since the 2016 acquisition of Stroili Oro in Italy and Oro Vivo in Germany, the group now operates in France, Italy, Germany and Belgium through a network of more than 1,000 company-owned stores, primarily located in shopping centres. THOM Europe operates under the following brands: Histoire d’Or, Marc Orian, TrésOr, Stroili Oro, Franco Gioielli and Oro Vivo. 2) Investment rationale Having been a shareholder of Histoire d’Or for eight years, Apax had reviewed the opportunity to combine Histoire d’Or andMarc Orian several times in thepast. The investment thesis is nowbased on the combined group. THOMEurope is a leader in a stable, high-margin and fragmented market, in which scale provides a key competitive advantage. Its retail concepts, found in prime locations, stand out from the competition and are supported by best-in-class operations. Its outstanding, proven and highly-committed management team has a strong knowledge of both the Histoire d’Or and Marc Orian groups. 3) Sources of value creation In addition to the synergies generated from the merger, THOM Europe shows significant growth potential via new openings in both shopping centres and city centres, development of e-commerce and international expansion. 4) Achievements Since investment and theHistoired’Or/MarcOrianmerger, several developments have created value for the group. A few dozen stores have been opened in France and Belgium with a focus on city centres since 2013. In 2014, thegroup acquired43Piery stores and made several other small acquisitions. THOM Europe has

also internationalised, acquiring two jewellery chains inNorthern Italy, and opening several new stores in the country. Lastly, an e-commerce site and a digital marketing/CRM strategy were launched in 2013. In July 2014, the group issued bonds for €345m to refinance its existingdebt, finance the acquisition of the Piery stores and repay part of shareholders’ convertible bonds, which allowed Altamir to recoup 40% of its initial cost. In October 2016, THOM Europe acquired Stroili, the leading Italian jewellery retail chain (369 stores), and Oro Vivo’s German subsidiary (38 stores), thereby creatingEurope’s largest jewellery retailerwithmore than 1,000points of sale, over 5,000employees and pro forma revenue of more than €600m. In July 2017, the group refinanced its bond debt with a €565m term loan, significantly reducing its annual interest expense. In April 2018, the group repurchased convertible bonds, allowing investors to recoup around 13% of their initial stake. 5) Performance THOM Europe continued to perform well in 2017/18 (FYE September 30). Revenue rose by 4.4% to €672.7m and EBITDA was up 4.1% over the previous financial period. This performancewas the result of an increase in same-store sales in France and the continued recovery of Italian operations after a weak performance in Q1 2018. The group continued to expand during the period with the opening of 40 new stores in Europe and a 39% increase in online sales in 2018. 6) Exit THOM Europe has a scale and high margin profile which makes it an attractive target to large private equity groups as well as trade buyers.

DATE OF INVESTMENT

PORTFOLIO AT FAIR VALUE

SECTOR

COUNTRY

RESIDUAL COST

FAIR VALUE

2010

€ 34.6 m €

43.6 m

4.4 %

F R A N C E

32 Registration document ALTAMIR 2018

www.altamir.fr