Altamir - Registration Document 2016

FINANCIAL AND LEGAL INFORMATION Presentation and history of the Company

1

www.melita.com

1) Business description Melita is the leading converged telecommunications operator in Malta. It supplies 99%of homes inMaltawith high-speed, digital cable access andhas 110,000unique subscribers, corresponding to approximately 70%of Maltese households. Melita offers pay- TV, broadband internet access, fixed andmobile telephony, and B2B services. In addition to its leading-edge cable network, it operates its own mobile network, a data centre built to Tier 3 specifications and a Wi-Fi hotspot network across the Maltese islands. 2) Why did we invest? Melita is the leading converged fixed-mobile telecoms operator, the leader in thepay-TVandbroadbandmarkets anda challenger in the mobile market. It has a technological advantage over competitors, notably a faster internet speed. Melita is one of the first convergedcableoperators inEuropeproviding fixed-mobile services as well as triple-play (3P) and quadruple play (4P) bundles, for which consumer demand is very high. The Maltese market has robust fundamentals: a good macro outlook, a growing population and a buoyant economy with an increasing demand for B2B telecom and hosting services. There is a clear path to revenue growth, driven by (i) competitive Mobile/4P offers, (ii) demand for higher internet connection speeds, and (iii) the development of B2B activities. Meanwhile, operational efficiency improvement is expected to lead to margin uplift. The investment was made with a quality partner, Fortino, which is headed by former executives of Telenet. Fortino co-invested alongside Apax funds in Melita and in Nowo/Oni (Portugal) and helped to bring in operating advisors to work with the management team on various projects and capture synergies between Melita and Nowo/Oni.

3) How do we intend to create value? The investment thesis is to: (i) continue to invest in cable infrastructure tomaintain the company’s broadband leadership, by increasing the internet speeds delivered to customers, and regain television market share by improving the content and customer experience; (ii) develop Mobile market share through bundling with fixed services; (iii) unlock B2B market potential; and (iv) improve customer care and operational efficiency. 4) What has been achieved? A new Chairman & CEO with extensive experience in telecommunications and in the cable industry was recruited in April 2016. Previously, he served as Board member and CEO of BlizooMediaandBroadband (the largest operator inBulgaria), as CEOof theGermanoperator Kabel BWand as CEOof HanseNet. The new chief implemented several newmeasures, taking steps in particular to improve customer care. Additionally, the company is working to roll out new set-top boxes andmodems andupgrade both themobile network (from 3G to 4G) and the fixed infrastructure. 5) How is it performing? In 2016, Melita outperformed its budget slightly, delivering 8% growth in EBITDA vs. 2015. Its revenue rose by 5% to €64.8m, driven by broadband, B2B and mobile growth. As of 31 December 2016, as a company held in the portfolio for less than one year, Melita was valued at cost. 6) How will we crystallise value? With its subscription-based business model, strong growth, excellent operational performance, and high cash flow conversion, the company should be highly attractive to both financial and trade buyers.

Sector

Country

Date of investment

Residual cost in €m

Fair value in €m

% of the portfolio at fair value

Malta

2016

33.9

33.9

3.9

31

REGISTRATION DOCUMENT 1 ALTAMIR 2016