Altamir - 2018 Registration document

1

Business description and activities

Comments on the financial year

1.4 COMMENTS ON THE FINANCIAL YEAR

1.4.1. OVERVIEWAND PERFORMANCE

1.4.2. THE COMPANY’S ACTIVITIES

2018was amixed year. Optimism in the first half contrastedwith a pessimistic secondhalf, which stockmarkets amplified, becoming more volatile and ending the year with a double-digit decline. Although the economic fundamentals remained very strong throughout 2018, the political and social environmentsworsened, with a tradewar launchedby theUSagainst China inparticular, the lack of a Brexit deal, and populist movements in Italy and France. The private equity market once again experienced a record year in Europe, in terms of both investments and divestments realised, with the two negative factors being the fall in capital raising and the near-closure of stockmarkets. Valuationmultiples continued to rise. In this context, Altamir’s business activity in 2018 was healthy. The Companymade eight new investments in Europe, the United States and Asia. It invested a total of €154.3m and completed several divestments for €155.7m. The companies in the portfolio continued to post excellent operating performances, driven by the combined effect of organic growth and acquisitions. n Net Asset Value (NAV), calculated according to IFRS, stood at €21.72 per limited partners’ ordinary share at 31 December 2018, a slight 0.8% increase from 31 December 2017 (€21.54). Including the dividend of €0.65 per share paid inMay 2018, Net Asset Value per share increased by 3.8% from 31 December 2017, after rising 2.6% in 2017. The companies in the portfolio once again turned in excellent operating performances during the year, with the portfolio’s average EBITDA, weighted by the residual amount invested in each company, increasing by 25%. Net Asset Value is the most relevant financial indicator for reviewing the Company’s business activity. It is calculated by valuing the investments based on International Private Equity Valuation (IPEV) guidelines. This organisation includes a large number of professional associations, including Invest Europe (formerly EVCA). NAV per share is stated net of the amount attributable to the general partner and to the holders of Class B shares, as well as the carried interest provisions for the funds in which the Company invests. n Consolidated net income totalled €30.3m as of 31 December 2018 (vs €20.9m as of 31 December 2017). It was comprised principally of all changes in the fair value of portfolio companies plus valuation differences on divestments during the period, less management and operating expenses and provisions for carried interest. NET ASSET VALUE

CHANGE IN ASSETS DURING FINANCIAL YEAR 2018

The figures below include Apax France VIII-B, Apax France IX-B, Apax VIII LP, Apax IX LP, Apax Digital andApax Development, as well as the four co-investment funds – Phénix, APIA Vista, APIA Ciprés and Turing Equity Co, through which Altamir also invests. Investments The Company invested and committed €154.3m during 2018, vs. €118.2m in 2017. 1) €131.5m (€95.3m in 2017) in eight new investments: n €103.3m via theApaxFrance IX fund, in threenewcompanies: – €36.2m in the ItaliancompanyAEBGroup, aworldwide leader in biotechnological ingredients and related services for the wine, food and beverage industries (subject to syndication, which is in progress), – €36m in theDutch connectivity solutions specialist Expereo, one of the world’s largest managed internet network and cloud connectivity solutions providers to international companies and government offices, with more than 11,500 sites under management across more than 190 countries, – €31.1m in Business Integration Partners (Bip), a leading European consulting firmheadquartered in Italy and present in 11 countries. Bipdeliversmanagement consulting, business integration and IT/digital transformation services supporting international companies in their innovation strategies and in the adoption of disruptive technologies; n €28.2m via the Apax IX LP fund, in five new companies: – €8.7m in Trade Me, a New Zealand operator of leading classified advertisingplatforms in the automotive, real estate and employment sectors and the leading marketplace for all new and used goods in New Zealand (transaction not finalised as of 31 December 2018), – €8.4m in Paycor, one of the main US providers of HR and payroll services, with a customer base of over 38,000 SMEs throughout the United States, – €4.1m in UK company Genius Sports Group, the world’s third-largest company providing sports organisations with software solutions for capturing and distributing sports data in real time, as well as services to prevent betting-related corruption, – €3.8m in US company Authority Brands, a major home services franchising company (with a network of more than 300 franchisees in the United States, Canada and Latin America), which provides residential cleaning services to over 100,000 customers across the United States, as well as at-home care services,

62 Registration document ALTAMIR 2018

www.altamir.fr