Altamir - 2018 Registration document

1

Business description and activities

Comments on the financial year

1.4.8 VALUATION METHODS

VALUATION POLICY AND METHODS

VALUATION METHOD

The portfolio companies, whether held directly or via an Apax fund, are valued by the funds’ management companies, reviewed by the funds’ Statutory Auditors, and finally approved by the funds’ Board of Advisors. Altamir’s policy is to adopt the valuations made by the funds’ management companies. Before valuations are finalised, they are reviewed by Altamir Gérance’s management, Altamir’s Statutory Auditors, the Audit Committee of Altamir’s Supervisory Board and the Supervisory Board in general.

The Apax fund management companies value their portfolios based on the principles of fair value, in accordance with International Private Equity Valuation (IPEV) recommendations. The Apax fund managers have always pursued a conservative valuation policy, as can be seen in the uplift historically generated from divestments (selling price higher than the last valuation made before the divestiture).

Unlisted companies are valued every half-year, and listed companies are valued every quarter.

For unlisted investments held for over one year Valuations are generally based on a sample of peer-group multiples (listed companies and recent transactions). Apax Partners SAS may apply a downward adjustment * of up to 20%. In principle, Apax Partners LLP does not make any adjustments, since it invests in larger companies.

For unlisted investments held for under one year Apax Partners SAS values companies at cost, except under specific circumstances. Apax Partners LLP usually values growth capital investments close to cost; buyout investments may be revalued from the first day that they are held.

For listed companies

Valued at the last listed price of the period, except in the event of restrictions in tradability or other exceptional circumstances.

* This downward adjustment corresponds to a liquidity adjustment of 0-20% based on performance quality, the position of Apax Partners/Altamir in the capital (minority vs majority, exit rights, etc.), the level of mergers & acquisitions activity in the sector, management influence and weighting at exit, and the liquidity of comparable companies.

1.4.9 THE COMPANY’S FINANCIAL RESOURCES

As of 31 December 2018Altamir had authorised lines of credit totalling€60m, unchanged fromyear-end 2017. The Company has raised its borrowing capacity to themaximumauthorised amount of 10%of its statutory net book value, whichwas €57.7mas of 31 December 2018. As of 31 December 2018, €33.3m of the credit was drawn.

68 Registration document ALTAMIR 2018

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