Altamir - Registration Document 2016

1

FINANCIAL AND LEGAL INFORMATION Presentation and history of the Company

www.nowo.pt www.oni.pt

1) Business description Nowo is Portugal’s second-largest cable operator. It reaches 25%of the Portuguesemarket, with 910,000homes passed, and had 178,000 subscribers as of December 2016. The company provides television, broadband internet access and fixed telephony services. Its bundled offers comprise dual play (2P) and triple play (3P) services and, as of April 2016, quadruple play (4P) as well. Headquartered in Lisbon, the company employs some 200 people and has 20 stores. ONI is the fourth-largest B2B telecommunications provider in Portugal, focusing exclusively on B2B services. The company operates its own network (more than 9,000 km of fibre optic lines) covering 85% of Portugal. ONI offers tailor-made communications & IT solutions (including mobile as of April 2016) to 1,500 customers comprising large, medium and small companies in sectors such as Financial Services, Utilities, Retail and Public. Headquartered in Lisbon, the company employs about 250 people. 2) Why did we invest? Apax’s teams are familiar with the industry to which these two companies belong and are particularly well acquainted with Nowo (formerly Cabovisão), having invested in the asset with Altice fromMarch 2012 to March 2013. The Apax funds invested in the company again when Altice acquired Portugal Telecom and was obliged to divest its other Portuguese businesses. Both companies have an attractive financial profile and offer stronggrowthpotential, especially inmobile. Theywere acquired at a good price and can expect to sell at a higher multiple at exit. The investment was made with a quality partner, Fortino, which is headed by former executives of Telenet. Fortino co- investedalongsideApax funds inNowo/Oni and inMelita (Malta) and helped to bring in operating advisors to work with the management team on various projects and capture synergies between Nowo/Oni and Melita. 3) How do we intend to create value? The aim is to create an efficient B2B/B2C telecom operator in Portugal through the launch of a mobile offer as well as management and organisational improvements.

Nowo’s launch of a mobile offer, its rebranding and a new range of services should increase customer stickiness andhelpwinnew customers.WithONI, the objective is to reposition the company around a new product offer encompassing mobile, increasing the opportunities to participate in competitive bids. 4) What has been achieved? Since acquisition, the two operators have carried out a fundamental reorganisation. The Executive Committee has been thoroughly renewed. Four operational work-streams have been started, led by external operational advisors with strong expertise and who will stay involved with the company over the long term. In April 2016, a Mobile Virtual Network Operator (MVNO) offer successfully launched, stemming customer base erosion. In September 2016, Cabovisãowas rebrandedNowo. The company introduced innovative new offers and a fresh product range including a state-of-the-art TVplatformand new set-top boxes. 5) How is it performing? The reorganisation initiated by the two operators is advancing well and beginning to pay off. In 2016, revenue of €118m and EBITDA were behind plan, due to a one-month delay in the launchof themobileofferinganda lower-than-anticipatedARPU (Average Revenue Per User). Nowo’s customer base has been growing again since September 2016, however. Going forward, Nowo/Oni will focus on expanding its customer base andARPU, enhancingbrand awareness and increasing cost savings in various areas. The valuation of the investment in Nowo/Oni grew by €12.8m during the financial year 2016, reflecting a rise in the valuation multiple. 6) How will we crystallise value? The group could be acquired by a trade buyer seeking to enter or consolidate the Portuguese market.

Sector

Country

Date of investment

Residual cost in €m

Fair value in €m

% of the portfolio at fair value

Portugal

2016

20.6

33.4

3.8

32 REGISTRATION DOCUMENT 1 ALTAMIR 2016

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