Altamir - 2018 Registration document

1

Business description and activities

Presentation of the Company

www.expereo.com

1) Business description Expereo is a leading global internet connectivity and managed services provider, operating in circa 11,000 enterprise and government sites across over 190 countries for more than 1,300 multinational clients. Expereo’s core business is sourcing, provisioning and managing internet connectivity from ca. 3,000 suppliers for multinational clients. Additionally, Expereo provides high value-added technology services such as cloud acceleration and SD-WAN, allowing clients to increase their network performance and flexibility. 2) Investment rationale Expereohas leadingpositions in the very attractive cloud services and software defined networking global markets. Thesemarkets are growing, as they are not dependent on economic cycles but rather are supported by strong long-term trends: global shift from private networks to IP networks, increasing bandwidth consumption, expansion of multinational companies. Expereo offers highly differentiated and innovative value propositions and technologies. It is managed by a strong team with a clear strategic vision andwhich has demonstrated its ability to execute it. With its unique network of local partners and its proprietary technology platform, Expereo’s XDNportfolio is well positioned to help enterprises deliver on the promise of network agility to drive their digital transformation. Expereo has a strong track record of performance, having achieved double-digit sales growth over the past five years to reach €92m in revenue in 2017. Expereo has built long-term relationships with an impressive number of blue-chip clients and business partners. Its businessmodel is particularly resilient (more

than 90% of revenue being based on subscriptions) and highly scalable with limited capex requirements. 3) Sources of value creation The objective is to accelerate Expereo’s growth by enhancing its product portfolio, realising complementary acquisitions, and delivering ever higher standards of excellence in its global go-to- market execution and service. Since Expereo was acquired, its performance has been perfectly on track with its business plan, notably with the current roll-out of its enhanced digital platform. A clear value creation plan has been built with management to further accelerategrowth, notablywith theobjectiveof improving Expereo’s digitisation and implementing the ESG best practices that have been defined. 5) Performance In 2018, revenue rose by 13% at constant exchange rates, driven by the continued increase in the number of sites managed and a higher revenue per site owing to the increasing success of Expereo’s value added proprietary solutions. EBITDA improved by 15% at constant exchange rates, driven by higher margins per site, partially offset by investments in the sales organisation. 6) Exit Strong growth track record, distinctive technology and strong business fundamentals (recurrence, cash conversion) should be highly attractive at exit. Exit routes include trade sale, tertiary LBO and IPO. 4) Achievements since the investment by Apax (September 2018)

DATE OF INVESTMENT

PORTFOLIO AT FAIR VALUE

SECTOR

COUNTRY

RESIDUAL COST

FAIR VALUE

2018

36.3 m

36.3 m

3.6 %

€

€

N E T H E R L A N D S

34 Registration document ALTAMIR 2018

www.altamir.fr