Altamir - 2018 Registration document

Business description and activities

Business description

1.3.3 ALTAMIR’S INVESTMENT POLICY

Assuming that investors have been able to calculate the overall or direct costs of the companies theywish to compare, one question still remains: WHICH DENOMINATOR SHOULD BE USED TO COMPARE THE EXPENSES OF ONE ENTITY WITH THOSE OF ANOTHER? a) Denominator for the overall cost approach

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FROM FOUNDING UNTIL 2011

Co-investment with the funds managed by Apax Partners SA (now Amboise Partners SA), up to the Apax France VII fund From December 1995, when it was listed on the stock exchange under the name Altamir & Cie, the Company co-invested pari passu with the fundsmanaged byApax Partners SA. On 31 March 2006, a newcompany, Amboise Investissement, was created and listed on the stock exchange. Also advised by Apax Partners SA, Amboise Investissement co-invested pari passu with the funds managed by Apax Partners SA and Altamir. As their respective portfolios were composed of the same companies, Altamir and Amboise Investissement merged on 4 June 2007, and the new company took on the name of Altamir Amboise. Altamir Amboise continued to co-invest according to the same terms and based on assets under management in every transaction in which the private equity funds managed by Apax Partners SA invested. In April 2007, the Company and Apax Partners SA (now Amboise Partners SA) signed an agreement setting out the rules of co- investment (“co-investment agreement”). This agreement allows Altamir to make use of an adjustment facility to adjust its co- investment rate at the beginning of each calendar half-year for the six months to come based on its cash flow forecast. The Apax France VII fund has been fully invested since the end of 2012 and can therefore make no new acquisitions. Altamir has no residual commitment alongside Apax France VII, however the Company may be required to make follow-on investments in portfolio companies. In this case, the percentages invested by Altamir andApax France VII are the same as those of the initial investment (and not that in effect as of the date of the follow-on investment, if different). Accordingly, Altamir invested€23.6m inAltran’s holdingcompany in 2018 to finance its proportional share of the acquisition of Aricent. Investment via the funds managed by Apax Partners SAS, the first being the Apax France VIII fund, raised in 2011 At the end of 2010, as part of the Company’s long-standing succession planning, Maurice Tchenio, the founder of Apax Partners SA, transferred responsibility for the future development of Apax Partners France to his partners, under the supervision of Eddie Misrahi. Accordingly, a newManagement Company was created: Apax PartnersMidMarket SAS (nowApax Partners SAS), approved by the AMF (l’Autorité des Marchés Financiers). SINCE 2011

Total costs

The ratio:

is not appropriate

Net Asset Value (NAV)

if the management fees paid by underlying funds are included in total costs, since the management fees are calculated based on the capital committed to the funds. There is a long lead time, generally three to four years, before this capital is put to work and a period of at least two years before an investment begins to appreciate in value. Consequently, costs increase, whereas for two or three years the NAV does not due to these investments (the J-curve effect). For this reason, we recommend the ratio used to compare the expenses of private equity funds that invest directly: To use this ratio for a listed private equity company, two adjustments are necessary: a) interest and taxes (specific to private equity companies, see above)must bededucted fromoverall costs. This adjustment is not necessarywhencomparing listedprivateequitycompanies with each other; b) to calculate the denominator, the total co-investments at cost must be added to the capital committed to the funds. Committed capital may change during the year. In such cases, an average of starting and ending balances should be used. b) Denominator for the direct cost approach The ratio: Total costs Committed and invested capital

Total direct costs Average NAV

The following ratio is best suited:

where the average NAV is the average of the opening NAV and closing NAV.

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ALTAMIR 2018

Registration document