FFP_REGISTRATION_DOCUMENT_2017

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GROUP PRESENTATION Portfolio presentation

Private equity funds

At 31 December 2017, FFP had invested €184 million (1) in private equity funds, representing 6.3% of the Gross Asset Value of Investments and 4.2% of FFP’s Gross Asset Value.

2017 was another very busy year for FFP’s private equity activities. FFP committed over €105 million to several new funds, including €78 million to buyout (LBO) and expansion capital funds and around €27 million to technology growth capital and impact investing funds. In the USA, FFP committed $10 million to the Veritas Capital VI fund, $15 million to the Valor Equity IV fund and $15 million to the Levine Leichtman VI fund. In Europe, FFP made commitments to three LBO funds: €10m to pan-European fund Chequers Capital XVII, €15 million to Spanish fund Portobello IV and €20 million to pan- European fund PAI VII. FFP also made commitments to two technology growth capital funds: €12 million to pan-European fund Summit Partners Europe II and $15 million to Insight Partners X. Finally, FFP made a €2 million commitment to French venture philanthropy fund Alpha Diamant II. In 2017, calls for funds amounted to €70 million. Funds carried out a number of disposals, leading to distributions of around €34 million in 2017.

Since 2002, FFP has invested in private equity funds. This asset class allows FFP to invest in a large number of companies and business sectors, taking a long-term approach. It also gives FFP exposure to sectors and geographical zones that would be hard for it to access directly. FFP’s portfolio consists mostly of buyout (LBO), expansion capital and technology growth capital funds, which invest in Europe, the USA and emerging-market countries (India, China, Africa and the Middle East, along with markets in which IDI Emerging Markets invests). The main private equity strategy is to support LBO and expansion capital teams in Europe, North America and emerging markets. FFP also invests in adjacent asset classes such as technology growth capital funds and impact investing/venture philanthropy/ sustainable development funds. FFP seeks to make co-investments with certain funds.

RETURNS (2)

EXPOSURE (3)(4) BY TYPE OF FUND (in millions euros)

€M

25.0% Expansion capital

700

12.2% Technology growth

600

500

Not called 209

6.3% Other

400

Valuation (1) 184

300

Called 323

200

Money returned 244

100

0

56.5% Buyout

NEW COMMITMENTS BY VINTAGE YEAR (in millions euros)

120

60

105

77

53

69

53

45

41

5

8

5

22

24

0

2006

2007

2008 2009

2010

2011

2012

2013 2014

2015

2016 2017

(1) Excluding co-investments and real-estate funds. (2) When FFP makes a commitment to a private equity fund, it undertakes to invest the committed amount. The fund makes gradual capital calls as investment opportunities arise. The company that manages the fund provides valuations of assets in which it has invested. Stakes in investee companies are later sold and the disposal proceeds are distributed among the fund’s investors. For each fund, therefore, FFP has an initial commitment, broken down into a called amount and an uncalled amount (which together equal the initial commitment), a periodic valuation of its investment and a returned capital amount if the fund has already started making disposals. (3) When calculating Net Asset Value, FFP values funds at their reported Net Asset Value. For the large majority of funds, that value is calculated using rules established by the International Private Equity & Venture Capital Valuation Board. In FFP’s consolidated financial statements, the total amount of commitments (called and uncalled capital) is recorded in the balance sheet. (4) Exposure is the sum of the value enhancement and uncalled commitments

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FFP

2017 REGISTRATION DOCUMENT