Altamir - 2018 Registration document

Business description and activities

Presentation of the Company

1

www.sandaya.fr

1) Business description Founded in 2011, Sandaya is an integrated premium campsite operator, which has grown through the successive acquisition of independent campsites. The group operates 21 four- and five-star campsites in France and Spain, located primarily on the seashore, with high-quality accommodation (mobile homes, lodges, chalets, empty pitches for tents, caravans and camping cars) and a wide variety of leisure activities and services (water parks, kid’s activities, playgrounds, etc.). Customers are French (53% of sales) as well as Dutch, Belgian and German. Sandaya’s business model is based on full control of the value chainof campsiteoperations through: (i) ownership (or long-term lease) of landwith high value seafront locations; (ii) ownership of accommodation, with a frequently renewed fleet consistent with the group’s premiumpositioning; (iii) directmanagement of each site, consistently applying best practices across the group and systematically monitoring customer experience; and (iv) direct distribution through ane-commercewebsite, a call centre, apaper catalogue and an ad hoc sales force for company work councils (Comités d’Entreprise). 2) Investment rationale Sandaya operates on a growing, resilient and highly fragmented end market, with premiumisation and consolidation trends. The company has a differentiated and superior offering, with an “integrated branding” business model allowing for revenue optimisation through occupancy rate and pricing management, strict control of land, operation and distribution costs, and a uniform branding strategy. The management team includes visionary entrepreneurs, who are former CEOs of large structured players in the leisure accommodation industry (Pierre et Vacances and Center Parcs) with a proven track-record of consolidation, having successfully negotiated, integrated and optimised 20 acquisitions from 2011 to 2018. Sandaya has strong growth potential, both organically and through acquisitions.

3) Sources of value creation The investment strategy is based on the following drivers: (i) external growth: consolidation of a highly fragmented premium campsites market to benefit from economies of scale; (ii) optimisation of commercial methods through digitalisation: yield management, increased occupancy rates, increased online sales, etc.; (iii) internationalisation: growing sales presence in selectedEuropean countries tooptimise off-peak occupancy and pricing; and (iv) optimisation of financial structure: refinancing of land-owning subsidiary to free up the necessary cash resources to finance acquisitions. 4) Achievements By the end of 2018, Sandaya had already acquired 13 campsites (adding 5,040 pitches, +109% vs. acquired scope), with one further campsite under exclusive negotiation (710 pitches) and oneoperatedunder amanagement contractwithanoption tobuy in 2021 (310 pitches). Sandaya is pursuing a number of additional acquisition opportunities for the 2019 and 2020 seasons. The company is alsoworking on optimisingRevPar (Revenue per Available Room), at constant scope, with owned mobile homes replacing tour operators and empty pitches. Sandaya has strengthened its management team by hiring a ManagingDirector in chargeof sales, marketinganddigital, aCFO, a build-up/M&A manager and an Operations Director. In 2018, it invested significantly in marketing and digital to grow its brand awareness and optimise online sales for the coming seasons. 5) Performance For the 2017/18 financial year (FYE 31 October), the company generated revenue of €46.7m, up 27%compared to the prior year, owing to an increase in business at constant scope (14 campsites) and the acquisition of five campsites at the start of the season. On a pro forma basis including the acquisitions planned for the 2019 season, LTM estimated revenue is approximately €68.8m. 6) Exit Sandaya is expected to become a leading premium campsite operator in Europe and will therefore be attractive for both Europeangeneralist outdoor accommodationplayers andprivate equity funds.

DATE OF INVESTMENT

PORTFOLIO AT FAIR VALUE

SECTOR

COUNTRY

RESIDUAL COST

FAIR VALUE

2016

20.7 m

22.0 m

2.2 %

€

€

F R A N C E

39

ALTAMIR 2018

Registration document