2019 half year results - actusnews wire · h1 2019 results - 5 september 2019 p.15 divestments...

2019 HALF YEAR RESULTS5 September 2019

MAURICE TCHENIOCHAIRMAN & CEO OF ALTAMIR GERANCE

ERIC SABIACFO

-----------------------------------

ACCESSING APAX PARTNERS INVESTMENTSTHROUGH THE STOCK MARKET

H1 2019 RESULTS - 5 SEPTEMBER 2019 p.2

The private equity market

H1 2019 operating highlights

A quality portfolio

NAV and share price performance

Objectives

Conclusion

Presentation of Altamir

AGENDA


▪ Euronext Paris-listed private equity company, created in 1995 as a means to access Apax Partners’ investments through the stock market

▪ Offers a unique exposure to a diversified portfolio of private equity investments managedby leading private equity firms Apax Partners SAS (Paris) and Apax Partners LLP (London)

▪ €896m in net assets and 49 portfolio companies as of 30 June 2019

▪ Legal structure: French Société en Commandite par Actions (SCA)

- Limited partners (ordinary shareholders)- General partner (Altamir Gérance)

▪ Tax regime: French Société de Capital Risque (SCR)

- Favourable for Altamir and its shareholders- No structural debt (maximum set at 10% of statutory shareholders’ equity)- Minimum of 50% of net book value invested in unlisted companies located in the EU

PROFILE


▪ Grow NAV per share and outperform the most relevant indices(LPX Europe and CAC Mid & Small)

Performance

▪ Maintain a sustainable and attractive dividend policy(2-3% of year-end NAV)

Shareholderreturn

▪ Reach a critical mass of €1bn in assets under managementin order to:

- Be an essential partner to Apax Partners SAS and Apax Partners LLP- Increase the liquidity of Altamir shares, thus attracting a broader universe

of investors with a view to minimising the discount to NAV

Critical mass

Providing shareholders with long term capital appreciationand regular dividends

OBJECTIVES


Since 2011 and going forward

▪ In the funds managed by Apax Partners SAS

- €277m committed to the Apax France VIII fund- €306m committed to the Apax France IX fund

(with an €80m opt-out clause)

▪ In the funds advised by Apax Partners LLP

- €60m committed to Apax VIII LP- €138m committed to Apax IX LP

▪ Occasionally in co-investment with the fundsmanaged or advised by Apax Partners SAS and Apax Partners LLP

Prior to 2011

▪ Co-investments alongside the fundsmanaged by Apax Partners SA (renamed Amboise Partners SA)

Nearing the end of the transition period: as of 30 June 2019, afterthe divestiture of Altran, only 2 companies out of 49 remained fromthe legacy portfolio

ALTAMIR INVESTS WITH APAX PARTNERS


2private equity firms,leaders in their respective markets

40+years of experience

Track recordof performance

Apax Partners SAS

30 investment professionals;sector specialisation

Mid-sized companies, with enterprise value of €100mto €1bn

Investments in French-speaking European countries

~€4bn of total funds raisedEquity tickets:€50-150m

Apax France IX:€1bn (2016)

Apax France VIII:€704m (2011)

Apax Partners LLP

120 investment professionals across 7 offices worldwide, specialised by sector

Companies with enterprise value between €1bn and €5bn

Investments in Europe (other than French-speaking countries), in North America and in key emerging markets (China, India, Brazil)

~€43bn of total funds raisedEquity tickets:$360-420m

Apax IX LP:$9bn (2016)

Apax VIII LP:$7.5bn (2013)

Paris-basedcompany

London-basedcompany

APAX PARTNERS


- TMT

- Consumer

- Healthcare

- Services

Sectors of specialisation

- Majority or lead positionsControl

- Buyouts and growth capital investments Leveraged investments

- Mid-market companies in French-speaking

European countries (France, Benelux, Switzerland)

- Larger companies in Europe, North America and

key emerging markets (China, India and Brazil)

Diversified by geography and

size

Growth companies

- Market leaders with strong growth prospects

- Visionary entrepreneurs and management

teams

- Differentiated business models

TARGET: ACHIEVE 2-3X THE AMOUNT INVESTED

Growth- and sector-focused strategy

INVESTMENT STRATEGY


SECTOR EXPERTISE

VALUE CREATION

RIGOROUS PROCESSES

Clear differentiating factor to identify the best investment opportunities, win deals and create value

Hands-on involvement by Apax teams to create value through operational excellence, internationalisation, consolidation/acquisitions and digital transformation

Environment, social & governance, due diligence and monitoring of each investment

• Investment process: for investment, value creation, exit

• Firm development process: HR, IT, ESG, etc.

Shared by Apax Partners SAS & Apax Partners LLP

APAX’S COMPETITIVE ADVANTAGES

RESPONSIBLE INVESTMENTS




A quality portfolio


Objectives

Conclusion


AGENDA


43.4

96.2

115.3

97.3 96.5

142.3137.8

127.1

162.3170.6

79.5

2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 H1 2019

Buyout value (in $bn)

A very active first half

EUROPEAN PRIVATE EQUITY MARKET

Source: MergerMarket

H1 2018 :94.0


Reduction of the amount of dry-powder in H1

EUROPEAN PRIVATE EQUITY MARKET

Exit value (in $bn)

34.2

94

131.9

113.3

91.2

176.5167.5

148.7

182.8

135.9

58.6

2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 H1 2019

Source: MergerMarket

H1 2018 :67.0




A quality portfolio


Objectives

Conclusion


AGENDA


Statutorynet cashposition

(at 30/06/2019)

AverageEBITDA growth*

NAV growth

Divestments

Investments&

commitments

New investments & commitments

Record level of divestments and very sharp increase in NAV

H1 2019 HIGHLIGHTS

+16.0%

dividend included(vs +1.0% in H1 2018)

+10.5%

(vs +25.0% in 2018)

€ 356.0m

(vs €80.5m in H1 2018)

5

(vs 3 in H1 2018)

€ 21.9m

(vs €81.3m in H1 2018)

€ 182.1m

(vs -€13.6m at end-2018)

* Average EBITDA LTM growth of 37 portfolio companies, weighted by each company’s residual cost


€356.0m of divestment proceeds and revenue in H1 2019

DIVESTMENTS

7.2

117.3

188.7

38.5

115.2

63.9

88.2

215.7

98.7

155.7

356.0

2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 H1 2019

Divestments (in €m)


DIVESTMENTS

€11.9mfrom the sale of Exact Software(4.0x the amount invested in 2015)

€13.5mfrom the sale of Assured Partners(2.9x the amount invested in 2015)

Full exits (5 companies) Partial exits / other

€134.4mfrom the sale of INSEEC U.(3.6x the amount invested in 2013)

€23.6mfrom the dividend recapitalization of Marlink

€69.1mfrom the sale of Altran(2.9x the amount invested in 2008)

€98.7mfrom the sale of Melita(2.9x the amount invested in 2016)

€1.0mof other proceeds and revenue from Evry, Idealista and Manappuram

€3.8mof other proceeds and revenue from Thoughworks

€356.0m of divestment proceeds and revenue in H1 2019


45.6 50.5

41.1

74.5

39.6

130.3

83.0

95.3

133.7

25.3

17.4

21.3

6.0

17.7

3.8

12.9

29.3

22.9

20.6

-3.3

8.6

63.0

71.8

47.1

92.2

43.4

143.2

112.3

118.2

154.3

21.9

2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 H1 2019

New investments & commitments Follow-on investments

0 2 3 2 127 8 11 8

Number of new portfolio companies

(in € million)

*

5

H1 2019 Investments and Commitments

€21.9m of new and follow-on investments

7


TMT SERVICES

€8.9m

Assured PartnersAPAX IX LP

One of the largest insurance brokeragefirms in the United States, Assured Partners provides property & casualty insurance brokerage services to commercial and individual customers. The company was previously held through the Apax VIII LP fund.

€8.7m

InmarsatAPAX IX LP

A world leading provider of satellite communications (voice and data).Acquisition to be made alongside 3 other funds.

€3.0m

Fractal AnalyticsAPAX IX LP

Based in Mumbai, Fractal Analytics is a global provider of artificialintelligence and data-basedsolutions that power humandecision-making.

INVESTMENTS AND COMMITMENTS

€25.3m of new investments and commitments in H1 2019

€3.3m

Baltic Classifieds GroupAPAX IX LP

Baltic Classifieds Group is a portfolio of leading online classified advertising platforms in the Baltics.The company operates in Lithuania, its largest market, through Diginet LTU.

CONSUMER

€1.4m

Huayue EducationAPAX IX LP

A leading provider of Chinese language learning and teaching solutions


11.0311.59

12.10

13.47

14.87

16.04

18.60

21.62 21.54 21.72

24.54

0.20

0.410.45

0.50

0.56 0.650.65

0.66

2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 H1 2019

NAV per share Dividend paid in N for financial year N-1

+16% NAV growth in H1 2019, dividend included

HISTORICAL NAV GROWTH

* Dividend for FY N-1, divided by number of shares in N

(in €)


792.9

792.9

885.3

961.3950.6

920.6 920.1

896.095.0

73.4

1.8

12.6

30.0

0.5

24.1

NAV at end

2018

Realised Gain Unrealised

Gain

FX Impact

(net of

carried

interest)

Direct and

indirect

costs* and

taxes

Carried

interest

provisions*

Interest

Income &

Other

Dividend NAV June

2019

+

€170.3m of value creation

NAV BRIDGE

--

+-

* including fees and carried interest provisions at the Apax funds’ level

(in € million)

+-

75.3

Significant value creation in H1 2019


-15.6

0.0

0.0

0.0

0.9

1.1

2.0

2.4

4.3

4.7

7.5

9.2

10.2

10.8

10.9

13.3

13.5

1.8

3.1

9.5

27.6

53.0

Europe Snacks

AEB

Expereo

Sandaya

Afflelou

Other Healthcare

InfoVista

Vocalcom

Other Services

Other Consumer

Marlink

BIP

THOM Europe

Other TMT

SK FireSafety Group

Ciprés

ThoughtWorks

Assured Partners

Exact Software

INSEEC

Melita

Altran

VALUE CREATION BREAKDOWN

Contribution to NAV Company performance Valuation multiple(in €M)

€170.3m

Strong operational performance significantlydriving value movements and/or valuation outlook

Operational performance behind expectations impacting value and/or valuation outlook

Weakened operational performance negatively contributing to value movements and/or valuation outlook

€95.0m

€75.3m

€170.3m of which €95.0m from divestments

Snacks Développement


Unrealised gain by key drivers (m€)

25.0

75.3

54.9 48.3

23.0

20.7

0

10

20

30

40

50

60

70

80

90

EBITDA growth

or other

valuation

metrics

Change in

multiple

Change in Net

Debt

Cash in / cash

out

Accretive /

dilutive

instruments

Value creation

998.9977.5

809.7

201.6

15.8

164.3 167.8

700

750

800

850

900

950

1000

Ptf Value

12/2018

Proceeds

H1 2019

Investment +

Follow-on

H1 2019

Unrealised

Gain

Ptf Value

06/2019

Sale Altran

and Melita

Pro-forma Ptf

Value

06/2019

Portfolio bridge at fair market value (m€)

Value creation driven by EBITDA growth and change in multiples

VALUE CREATION ANALYSIS OF UNREALISED PORTFOLIO

-


High level of divesture over H1 2019

MOVEMENTS IN THE PORTFOLIO AT COST

(in € million)

686.9

590.7 602.7

540.3

112.0

15.812.0

62.4

Portfolio 12/2018 Divestments Investments incl.

follow-on

Portfolio 06/2019 New commitments Portfolio incl.

commitments

06/2019

Sale of Altran +

Melita

Pro-forma Portfolio

06/2019


18%

5%

70%

6%

Portfolio at fair value as of 31/12/2017

Shares valued at fair value, with an adjustment of up to 20% or at the negotiated transaction price

Shares valued at the share price of the portfolio company or the listed operating company

Shares valued at cost

Other

Most of the portfolio is valued using comparable multiples

PORTFOLIO VALUATION



3%8%

89%

6%8%

86%


41

113

28

104

38 37

173

102 106

256

68

166

32

121

47 50

201

115107

328

2010 2011 2012 2013 2014 2015 2016 2017 2018 H1 2019

Valuations Exit prices

H1 2019 uplift impacted by strong exits

UPLIFT EVOLUTION

(Difference between exit price and the last carrying value)

(in € million)

+66% +16% +22% +35% +16% +13%* +1% +47% +28%+13%Uplift :


€254.5m* of outstanding commitments as of 30 June 2019 to be invested over the next 2 years:

▪ €6.9m to Apax France VIII

▪ €150.2m to Apax France IX

▪ €70.9m to Apax IX LP

▪ €14.7m to Apax Development

▪ €3.4m to Apax Digital

▪ €4.8m of recallable distribution for Apax VIII LP

▪ €3.7m of recallable distribution for Apax IX LP

The outstanding commitments are covered 4x by the current portfolio and net cash position as of 30 June 2019

* This amount is gross of the €123.7m already invested by the fund, to be called up to 12 months after investment.

Outstanding commitments as of 30 June 2019

COMMITMENTS


▪ Statutory net cash position of €182.1m as of 30 June 2019

▪ IFRS cash situation of €43.2m

▪ Proforma the latest capital calls received and the sales of Altran and Melita, the respectivecash position is▪ Statutory : ~€233m▪ IFRS : ~€195m

▪ Credit facilities of €60m (max 10% of the statutory net worth) ending March 2019 have notbeen renewed because not needed

Record level of cash after the H1 2019 divestments

CASH SITUATION


▪ Alain Afflelou has finalised its refinancing, distributing €2.5M to Altamir

▪ Apax IX LP has realized a new investment in ADCO Group, which provide mobile sanitation equipment rental. The investment for Altamir should be around €4.3M

▪ Apax Digital: 2 new investments announced in July

▪ Invested at 34% in 6 companies

▪ With a diversification:

▪ By geography: 3 investments in the US, 2 in Europe, 1 in China

▪ By stage: 4 Growths, 2 Buy-outs

▪ Apax Partners SAS and Apax Partners LLP are raising their Xth generation fund since the IXth

generation funds are 70%+ invested

EVENTS POST 30 JUNE 2019


▪ €530m in the 2 new funds managed by Apax Partners SAS and ApaxPartners LLP:

▪ €350m to the Apax France X fund currently being raised by Apax Partners SAS

▪ With a €80m opt-out clause in case of cash shortage (idem Apax France IX)

▪ €180m to the Apax X LP fund whose first closing was done by Apax Partners LLP on July 16th

▪ €200m to be allocated to co-investments or strategic investments, in order to:

▪ Seize new opportunities in dynamic markets, notably Asia

▪ Hold some companies for longer than the typical five-year investment horizon to maximize value

€730m to be allocated over the next 4 years

ASSET ALLOCATION 2020/2023




A quality portfolio


Objectives

Accounts and financial information

Highlights / NAV / Stock Price

AGENDA


In % of portfolio at fair value

PORTFOLIO BREAKDOWN BY TYPE

€977M AT FAIR VALUE AS OF 30 JUNE 2019 – 49 COMPANIES

* 5 co-investments in Ciprés, InfoVista, Marlink, Snacks Développement and ThoughtWorks** Marlink is an investment of both Apax France VIII-B and Apax France IX-B

9.8% 34.5% 18.2%18.3% 6.4%12.4%

28.6% 25.2%5.3%15.2% 15.2%10.3%

€810M AT FAIR VALUE AS OF 30 JUNE 2019 – 47 COMPANIES

22.2% in co-investments 77.8% via the Apax funds

24.5% in co-investments 74.5% via the Apax fundsIncludingAltran and

Melita

ExcludingAltran and

Melita

LegacyInvestments

3 companies2 companies

Co-investments :5 companies

Apax IX LP 20 companies

Apax France VIII-B6 companies5 companies

Apax France IX-B7 companies

Apax VIII LP14 companies

Apax Digital & Apax Development

0.2%


53%

22%

20%

5%

A well-diversified portfolio

68%

32%

By sector% of portfolio at fair value as of 30/06/2019

By vintage% of portfolio at fair value as of 30/06/2019

By geography% of portfolio at cost as of 30/06/2019

France (8 companies)

International (41 companies)

2017 (12 companies)

2016 (9 companies)

2015 (8 companies)

2014 (2 companies)

2013 and earlier(8 companies)

PORTFOLIO COMPOSITION

TMT (17 companies)

Services (14 companies)

Consumer (9 companies)

Healthcare (9 companies)

2018 (7 companies)

55% TMT + digital companies in other sectors

1%

16%

19%

31%3%

4%

26%

2019 (3 companies)


17%

10%

26%

19%

25%

11%

2%

9%

4%

10%

13%

11%

2014 2015 2016 2017 2018 H1 2019

Altamir portfolio CAC 40 companies excluding financials

New methodology: year-on-year EBITDA growth at constant exchange rates, weighted by residual cost for Altamir and by market cap for CAC 40 (in %)

High-growth companies

PORTFOLIO PERFORMANCE

Altamir: Average EBITDA growth of 37 portfolio companies (excluding financial firms) weighted by each company’s residual costCAC 40: Average EBITDA growth of 36 companies (excluding financial firms), weighted by each company’s contribution to market cap


Breakdown of sales growth weighted by residual cost


▪ 13 companies, representing 27% of the cost, have a double digit average sales growth

▪ 3 companies, which represent 10% of the cost, have a growth higher than20%

- Average SALES growth of 35 portfolio companies (excluding financial firms) weighted by each company’s residual cost, representing 92% of the FMV

9%

64%

17%

10%

0%

10%

20%

30%

40%

50%

60%

70%

Less than 0% Between 0% and

10%

Between 10% and

20%

+ de 20%

SALES growth

SALES Number of portfolio companies

6 16 10 3


Breakdown of EBITDA growth weighted by residual cost


14%

33%34%

18%

0%

5%

10%

15%

20%

25%

30%

35%

40%

Less than 0% Between 0% and

10%

Between 10% and

20%

+ de 20%

EBITDA Growth

EBITDA

8

Number of portfolio companies

8 9 12

▪ 21 companies, representing 52% of the cost, have a double digit average EBITDA growth

▪ 12 companies, which represent 18% of the cost, have a growth higher than20%

- Average EBITDA growth of 37 portfolio companies (excluding financial firms) weighted by each company’s residual cost, representing 95% of FMV


9.16

10.31

10.43

10.83

11.16

12.03

2014

2015

2016

2017

2018

H1 2019

Valuation multiples at end of period

Entreprise value / LTM EBITDA # of companies

44

38

28

21

35

3.82

3.96

4.07

4.22

4.55

4.91

2014

2015

2016

2017

2018

H1 2019

Debt multiples at end of period

Total net debt / LTM EBITDA # of companies

40

PORTFOLIO VALUATION AND DEBT MULTIPLES

For Valuation multiple : sample of 31 companies as of 30/06/2019 (excluding financial companies, companies being divested and companies where EBITDA is not relevant)For Debt multiple : sample of 38 companies as of 30/06/2019 (excluding financial companies and companies being divested)

New methodology: average multiples weighted by each company’s residual cost

31

44

38

28

21

11.90*

384.72*

*Including Melita & Altran


As of 30/06/2019 SectorYear of

investmentResidual cost

in €mFair value

in €m% of portfolioat fair value

Marlink 2016 46.68 117.53 12.02%

Melita 2016 33.74 98.71 10.10%

Ciprés 2017 47.40 80.20 8.20%

Altran 2008 28.65 69.06 7.06%

Snacks Développement2013 37.69 61.01 6.24%

THOM Europe 2010 34.72 53.96 5.52%

BIP 2018 31.08 52.95 5.42%

AEB 2018 40.30 40.30 4.12%

ThoughtWorks 2017 6.94 37.78 3.86%

SK FireSafety Group 2014 12.25 37.04 3.79%

Expereo 2018 36.31 36.31 3.71%

InfoVista 2016 39.37 33.56 3.43%

Afflelou 2012 20.62 25.67 2.63%

Sandaya 2016 20.74 22.03 2.25%

Vocalcom 2011 13.59 21.43 2.19%

Total 15 largest investments 450.08 787.54 80.6%

Other TMT (9 companies) 29.78 48.94 5.01%

Other Consumer (5 companies) 14.41 28.27 2.89%

Other Services (11 companies) 46.96 55.32 5.66%

Other Healthcare (9 companies) 47.32 54.84 5.61%

Total 49 investments 588.55 974.91 99.7%

PORTFOLIO COMPANIES

Apax Development and Apax Digital excluded

The 15 largest investments represent 81% of the portfolio at fair value


A world-leading provider of satellite communication services

▪ Good performance of Maritime activity in H1 2019, driven by the VSAT segment

▪ Strong growth of the Enterprise industry business (terrestrial solutions)

H1 2019 revenue +1.2% vs H1 2018

H1 2019 EBITDA+16.8% vs H1 2018

TMT

PORTFOLIO COMPANY SNAPSHOTS

Leading cable operator in Malta offering converged telecommunications services

▪ Apax Partners SAS announced sale of the company to EQT Infrastructure in May▪ Transaction closed on 31 July 2019


TMT


H1 2019 revenue+17.9% vs H1 2018

H1 2019 EBITDA +16% vs H1 2018

A European leader in Management, IT and digital transformation consulting

Very strong performance, in line with 2018 and ahead of initial plan:

▪ Strong recruiting push in Italy▪ High staff utilisation rate

World leader in engineering and R&D services

▪ Altamir and Apax Partners SAS announced sale of the company to Cap Gemini on 24 June

▪ Transaction finalized on 2 July 2019


TMT


Double-digit growth in revenue and EBITDA in H1 2019

A leader in digital transformation and software development

▪ Sound momentum continuing into 2019 with strong performance particularly in China, Brazil, Germany and North America

▪ Sharp increase in profitability, driven notably by improved efficiency in general and administrative expenses

A leading global internet connectivity and managed services provider

▪ Performance on track with business plan, notably with the current roll-out of an enhanced digital platform

▪ H1 2019 revenue and EBITDA driven by the increase in direct sales to large corporations and traction in US sales, supported by investment in direct salesforce

▪ Ongoing operational effectiveness and product enhancement initiatives

17% increase in revenue and EBITDA in H1 2019


TMT


Leading global provider of network performance software solutions and services

▪ FY 2018/2019 (FYE 30 June) top-line organic growth driven by a rebound of InfoVista’s legacy business (Service Assurance) as well as ongoing development of the 5G market

▪ New sales organization built around 2 business units (Global Enterprise and Global Networks) to take the company on the next wave of growth, notably in SD-WAN and 5G

H1 2019 revenue+1.7% vs H1 2018

H1 2019 EBITDA -16% vs H1 2018

Software and multi-channel technology provider for customer contact centres

▪ Migration from licence model to SaaS/Cloud model completed successfully, with positive impact on the business

▪ H1 2019 revenue growth driven by the SaaS/Cloud business

H1 2019 revenue up ca. 10%


Services


2nd–largest French wholesale broker specialised in supplemental insurance protection for self-employed people and SMEs

▪ Ciprés/Axelliance: a combined group with ca. €520m in the portfolio and ca. 9,200 broker-partners as of June 2019

▪ Performance in line with the initial objectives 2 years after the investment

▪ Ongoing revamping of back-office software, with completion scheduled for end-2019

H1 2019 revenue +4% vs H1 2018 (+12% excl. Equipment business)

H1 2019 EBITDA-5% vs H1 2018 (+24% excl. equipment business)

A worldwide leader in biotechnology ingredients and related services for wine, food and beverages

▪ H1 2019 performance driven by a good level of business activity in Italy – AEB’s largest market – and the acquisition of Danmil

▪ Equipment division performance below plan due to the cancellation of 3 large orders

▪ Favourable outlook for northern hemisphere harvest in volume and quality

H1 2019 revenue +2.5% vs H1 2018

H1 2019 EBITDA +22% vs H1 2018


Services


Leading fire safety specialist in Northern Europe

▪ Recurring activities performed well across all business units (except Oil & Gas) in H1 2019

▪ Aerosafety division sale closed in January

H1 2019 revenue,+10% vs H1 2018

H1 2019 EBITDA+13% vs H1 2018


Leading European producer of private-label savoury snacks

▪ Continued business growth in the first 5 months of the 2019/2020 financial year (FYE 31 January), driven by strong revenue growth in the UK, offsetting softer category performance in France

▪ Slight erosion of the operating margin in a context of a cyclical increase in raw material prices

5 months FY 2019-20 revenue +3.9% vs same period of FY 2018-19

Leading jewellery retailer in Europe (1,000+ stores)

▪ First 9 months of FY 2018/19 (FYE 30 September) performance driven by the increase in same-store sales in France, an improved level of activity in Italy and gross margin growth

▪ 18 new stores opened in Europe ▪ ca. 29% increase in online sales in France

9 mos. FY 2018-19 revenue: +4.2% vs same period of FY 2017-18

9 mos. FY 2018-19 EBITDA: +6.8%

Consumer



Leading European franchisor for optical and hearing aid products (~1,500 stores)

▪ Continued to outperform its market over the first 9 months of FY 2018-19 (FYE 31 July) thanks to the ramp-up of closed networks, management’s continued sales and promotional efforts, product launches and new exclusive collections

▪ Strong commercial performance driven by attractive store concepts and offers such as the Magic range in France and Spain

9 mos. FY 2018-19 network sales+5.6% vs same period of FY 2017-18

EBITDA +8% over the period

Consumer


Leading operator of premium campsites in France and Spain (24 campsites)

▪ Sales up 59% over the first 7 months of FY 2018-19 (FYE 31 October) driven by an increase in business at constant scope (17 campsites) and the acquisition of 7 campsites

7 mos. FY 2018-19 revenue: +59% vs same period of FY 2017-18


CONSOLIDATIONAND

ACQUISITIONS

DIGITAL TRANSFORMATION

FINANCIALFLEXIBILITY

INTERNATIONALISATIONOPERATIONAL EXCELLENCE

Value creation drivers

PORTFOLIO COMPANIES




A quality portfolio


Objectives

Conclusion


AGENDA


NAV Total Return as of 30 June 2019 over 1, 3, 5 and 10 years

Altamir outperforms its benchmark index

NAV TR PERFORMANCE

Sources: Altamir and LPX data as of 9 August 2018* LPX Europe data available from 30/09/2009

203.7%

81%

43%

20%

0%

58%

38%

6%

10 years 5 years 3 years 1 year

Altamir NAV TR LPX Europe NAV (index)


LOW INTRINSIC RISK PROFILE

PRUDENT FINANCIAL STRATEGY

CONSERVATIVE VALUATION POLICY

▪ No leverage at Altamir level▪ No over-commitment▪ No currency risks on fund investments

▪ Up to 20% downward adjustment applied on unlisted investments

▪ Exit prices always higher than last valuations(see historical uplift graph)

▪ Diversified by sector, geography and maturity▪ Reasonable leverage in the portfolio

DIVERSIFIED ANDHEALTHY PORTFOLIO


3.0%

4.5%

4.1%

4.7%5.2%

4.3%4.2% 4.2%

0.20

0.410.45

0.50

0.56

0.65 0.65 0.66

2012 2013 2014 2015 2016 2017 2018 2019

+16%+12%

+11%+10%

Dividend yield on the full year average closing priceDividend in €

2-3% of year-end NAV since 2013

DIVIDEND POLICY

* Dividend approved at the Annual general meeting (26/04/2018)

= +1%


NA*

Total shareholder return as of 30 June 2019 over 1, 3, 5 and 10 years

Altamir outperforms its benchmark indices

TOTAL SHAREHOLDER RETURN

Sources: Altamir and LPX data as of 1 August 2019* CAC Mid & Small GR index not available before 2011

790%

76% 81%

2%

347%

77%50%

6%

54%35% -6%

10 years 5 years 3 years 1 year

Altamir SP TR LPX Europe TR (index) Cac Mid&Small GR


Market capitalization still lower than statutory book net value

MARKET CAPITALISATION VS NET ASSETS

(in € million)

492

543

586

679

790 787 793

896

436

476508 517

570601

576

622

270

377 377408

466

556

462

591

31/12/2012 31/12/2013 31/12/2014 31/12/2015 31/12/2016 31/12/2017 31/12/2018 30/06/2019

NAV IFRS Statutory Net Book Value Market Capitalisation




A quality portfolio


Objectives

Conclusion


AGENDA


2019 OBJECTIVES

Achievements as of 30 June 2019

53

Investments• €100m• 6-7 new investments

Divestments • €250m

Value creation • 7% average EBITDA organic growth

• €356.0m of proceeds and income

Objectives Achievements

• €21.9m invested• 5 new investments

• 10.5% average EBITDA Growth




A quality portfolio


Objectives

Conclusion


AGENDA


Unique value proposition

▪ Allows access to privateequity’s superior returnsand Apax Partners’ expertise

▪ Double-digit annual growth in NAV on a total return basis

▪ Ambitious strategy focused on long-term growth

▪ Well diversified portfolio by sector, geography & maturity

▪ Reasonable leverage in the portfolio

▪ Conservative valuation policy

▪ Rigorous cash management process

▪ No structural debt at Altamir level

▪ Amboise SAS owns 65% of the sharecapital

▪ 40+ years of experience in privateequity

▪ Yield of 4-5% per year

▪ Double-digit total shareholder return

▪ Attractive entry point

▪ For long-term investors under certain conditions

Growth-drivenstrategy

Shareholderreturn

Low intrinsicrisk profile

Experienced and committed manager

Tax efficiency

Why invest?

CONCLUSION


APPENDICES


(in € million) 2017 2018 H1 2019

Changes in fair value of the portfolio 46.0 79.3 164.3

Valuation differences on divestments during the period 2.7 -10.5 5.8

Other portfolio income 1.5 0.8 0.1

Income from portfolio investments 50.2 69.5 170.3

Purchases and other external expenses (25.1) -23.7 -12.5

Gross operating income 26.7 45.6 157.5

Net operating income 21.4 31.6 127.5

Net income attributable to ordinary shareholders 20.9 30.3 127.0

Earnings per ordinary share (in euros) 0.57 0.83 3.48

CONSOLIDATED INCOME STATEMENT (IFRS)


(in € million) 31/12/2017 31/12/2018 30/06/2019

TOTAL NON-CURRENT ASSETS 895.2 999.2 977.9

of which portfolio investments 894.6 998.9 977.5

TOTAL CURRENT ASSETS 27.9 25.4 190.1

TOTAL ASSETS 923.0 1 024.6 1 168.0

TOTAL SHAREHOLDERS’ EQUITY 786.7 792.9 896.0

of which net income for the period 20.9 30.3 127.0

Carried interest provision for the General Partner and class B shareholders

29.7 10.2 23.2

Carried interest provision for the Apax funds

Other liabilities

38.0

2.7

59.8

2.5

76.7

25.8

Financial liabilities 65.9 159.2 146.3

TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY 923.0 1 024.6 1 168.0

NAV per share (in euros) 21.54 21.72 24.54

CONSOLIDATED BALANCE SHEET (IFRS)


(In € million) 2016 2017 2018 H1 2019

Operating expenses -9.4 -10.3 -10.0 -5.1

Taxes -0.8 -1.2 0.0 0.0

Net financial income 0.9 0.2 -0.6 0.0

Change in operating provisions

Change in working capital 0.0 2.3 2.7 0.4

Cash flow from operating activities -9.3 -8.9 -7.9 -4.6

Gross investments -127.3 -150.9 -116.4 3.3

Net resources (exits) 193.2 138.7 138.9 197.0

Cash flow from investing activities 65.9 -12.1 22.5 200.3

Dividends paid ADP -5.8 -15.3 -11.8 0.0

Dividends paid AO -20.4 -23.7 -23.7 0.0

Cash flow from financing activities -26.2 -39.0 -35.6 0.0

CASH FLOW 30.4 -60.0 -20.9 195.7

CASH BEGINNING OF PERIOD 36.9 67.3 7.3 -13.6

CASH END OF PERIOD 67.3 7.3 -13.6 182.1

STATUTORY CASH FLOW


NAV breakdown as of 30 June 2019

In €m Fair Market Value % of NAV

Marlink 117,53 13,1%

Melita 98,71 11,0%

Ciprés 80,20 9,0%

Europe Snacks 61,01 6,8%

THOM Europe 53,96 6,0%

BIP 52,95 5,9%

AEB 40,30 4,5%

ThoughtWorks 37,78 4,2%

SK FireSafety Group 37,04 4,1%

Expereo 36,31 4,1%

InfoVista 33,56 3,7%

Afflelou 25,67 2,9%

Sandaya 22,03 2,5%

Vocalcom 21,43 2,4%

Other Unlisted Companies 164,13 18,3%

Sub-total unlisted 882,62 98,5%

Altran 69,06 7,7%

Other Listed Companies 25,81 2,9%

Sub-total listed 94,87 10,6%

Total Portfolio 977,48 125.8%

Provision for carried interest -99,92 -11,2%

Other assets and liabilities -24,81 -2,8%

Cash (Debt) 43,23 4,8%

Net Asset Value 895,98 100%

Number of shares 36 512 301

Net Asset Value per share 24,54


Enterprise value / EBITDA

Portfolio = 12.03x

VALUATION MULTIPLES

10%

5%

36%

17%

32%

< 9x (3 companies)9x - 10x (1 companies)10x - 12x (9 companies)12x - 14x (9 companies)> 14x (10 companies)

Leverage (total LTM debt) / EBITDA

Portfolio = 4.91x

DEBT MULTIPLES

14%

7%

9%

6%

45%

19%

< 0x - 2x (8 companies)2x - 3x (5 companies)3x - 4x (2 companies)4x - 5x (5 companies)5x - 6x (7 companies)> 6x (11 companies)

% of Altamir’s portfolio residual cost at 30/06/2019

PORTFOLIO VALUATION AND DEBT MULTIPLES

% of Altamir’s portfolio residual cost at 30/06/2019

H1 2019 Average multiple % of residual cost*

Apax France 11.53 85.9%

Apax LLP 14.16 14.1%

31.12.2018 Average multiple % of residual cost*

Apax France 10.87 88%

Apax LLP 13.29 12%

For Valuation multiple : sample of 31 companies as of 30/06/2019For Debt multiple : sample of 38 companies as of 30/06/2019

New methodology: average multiples weighted by each company’s residual cost


USEFUL INFORMATION

STOCK MARKET DATA AGENDA CONTACT

Number of shares: 36,512,301

Market capitalisation: €586m at 3/9/2019

Stock market: Euronext Paris (compartment B)

Ticker: LTA

ISIN code: FR0000053837

7 November 2019, post-tradingNAV as of 30/09/2019

[email protected]

+33 1 53 65 01 00

www.altamir.fr

mailto:[email protected]


This document has been prepared by Altamir SCA (“Altamir”) for meetings to be held in September 2018.

▪ No warranty is made as to the fairness, accuracy, completeness or correctness of the information or opinions contained herein. Altamir isunder no obligation to keep current the information contained in this presentation and any opinions expressed in this representation aresubject to change without notice.

▪ This document may include forward-looking statements. These forward-looking statements relate to the future prospects, developmentand business strategies of Altamir and its portfolio companies and are based on estimates. By their nature, any forward-lookingstatement involves risks and uncertainties. Altamir cautions that forward-looking statements are not guarantees of future performanceand that its actual financial condition, actual results of operations and cash flows and the development of the industries in which Altamiror its portfolio companies operate may differ materially from those made in or suggested by any forward-looking statement contained inthis presentation. Altamir does not undertake any obligation to review or confirm analysts’ expectations or estimates or to releasepublicly any revisions to any forward-looking statements to reflect events that occur or circumstances that arise after the date of thisdocument, unless required by law or any applicable regulation.

▪ Altamir accepts no liability for the consequences of any reliance upon any statement of any kind (including statements of fact or opinion)contained herein.

▪ This presentation includes only summary information and must be read in conjunction with Altamir’s financial statements, which are orwill be available on Altamir’s website (www.altamir.fr)

▪ The information contained in this presentation may not be considered an invitation to invest. No information provided on this documentconstitutes, or should be used or considered as, an offer to sell or a solicitation of any offer to buy the securities of Altamir or any otherissuer.

DISCLAIMER

http://www.altamir.fr/

2019 half year results - actusnews wire · h1 2019 results - 5 september 2019 p.15 divestments...

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