Eurazeo / 2018 Registration document

Additional information for the management report PRESENTATION OF THE GROUP

NAV METHODOLOGY

to equity (i) historical or forecast net debt at nominal value, as appropriate, (ii) a discount for liquidity, where applicable and (iii) the amount payable, where applicable, to other investors according to their rank and investment managers. When the comparables method cannot be applied, other valuation methods are adopted, such as the Discounted Cash Flow method. As of December 31, 2018, the values adopted for CPK, Planet, Grandir, Seqens, Sommet Education, Doctolib, IES, l-Pulse, Vestiaire Collective, Younited Credit, Grape Hospitality, Reden Solar, Nest Fragrances and the investment partner fund management business, were subject to a detailed review by an independent professional appraiser, Sorgem Evaluation (4) . The values adopted for Trader Interactive, WorldStrides and Iberchem were subject to a detailed review by an independent professional appraiser, Duff & Phelps (4) . These reviews concluded that the values adopted are reasonable and prepared in line with a valuation methodology pursuant to IPEV recommendations. Recent investments (Albingia, Backmarket, Contentsquare, ManoMano, C2S, Dazeo, Highlight, Idinvest, Rhône Capital and PMG) are valued at acquisition cost. Eurazeo PME investment valuations were reviewed by the statutory auditors of the funds managed by Eurazeo PME as part of their review of the funds’ statutory financial statements that present investments at fair value in accordance with the accounting principles specific to investment funds. Listed investments (5) (listed investments and other listed assets) are valued based on the average, over the 20 days preceding the valuation date, of average daily share prices weighted for trading volumes. As the liquidity of the shares

Net Asset Value (NAV) is determined based on net equity as presented in the Eurazeo company financial statements (1) , adjusted to include investments at their estimated fair value in accordance with the recommendations set out in the International Private Equity Valuation Guidelines (2) (IPEV). Pursuant to these recommendations, which propose a multi-criteria approach, the preferred method for valuing Eurazeo's unlisted investments is based on comparable multiples (stock market capitalization or transactions) applied to earnings figures taken from the income statement. This valuation approach requires the exercise of judgment, particularly in the following areas: • in order to ensure the relevance of the approach, samples of comparables are stable over time and include companies presenting characteristics as close as possible to our investments, particularly with respect to their business and market position; where appropriate, these samples may be adjusted to reflect the most relevant comparables; • the earnings to which multiples are applied to obtain the enterprise value are primarily operating income (EBIT) or gross operating income (EBITDA). The multiples are applied to data taken from the historical accounts (preferred method) (3) or alternatively forecast accounts for the coming year where these contribute additional, relevant information (Doctolib, Younited Credit, IES, I-Pulse and Vestiaire Collective as of December 31, 2018); • the value of each investment is then obtained by subtracting the following amounts from the enterprise value, determined after adjustment, where applicable, for a control premium applied

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Eurazeo

2018 Registration document