Altamir Amboise 25 September 2008

Transcription

1 Altamir Amboise 25 September 2008 Maurice Tchenio, Chairman Monique Cohen, Deputy CEO SOMMAIRE The private equity market Altamir Amboise : identity and history 2008 half-year performance A quality portfolio Stock market performance Outlook Appendices 2 1

2 Investing in private equity One of the strongest-performing asset class over the long term Cyclical market Very significant performance differences between players 3 Private equity: a strong-performing asset class Comparison of average long term performance in Europe % Morgan Stanley Euro Index 6.9 HSBC Small Company Index 12.4 JP Morgan EuroBonds 10.6 European private equity 11.8 Source: EVCA/Thomson Reuters 4 2

3 Private equity: cyclical market European private equity report IRR as of 31 December year 3 years 5 years 10 years All funds combined 16.0% 17.2% 11.6% 11.6% Source: EVCA/Thomson Reuters 5 Private equity: performance disparities IRR from 1980 to 2007 IRR Top quarter funds 23.5% Top half funds 15.4% All funds combined 11.8% Source: EVCA/Thomson Venture Economics 6 3

4 Key drivers of private equity s outperformance A single objective: value creation within a defined long term horizon Capacity to act upon businesses (key sareholder): Team motivation: Financial optimisation: Strategy Teams Organisation Strict alignment of financial interests between managers and shareholders Leverage Recap Exit monitoring: IPO Trade sale Sale to private equity houses 7 Listed private equity : strong potential of development 8%* of the capital managed by private equity companies are handled through listed vehicles. In time, this figure is likely to rise to 20%. Private equity: a high-performance, but hard to access asset class (high entrance tickets) Stock market: simple access, liquidity and transparency Growing need for diversification among institutional and individual investors Benefits for private equity players: broader investor base, permanent capital, visibility Sources: LPX, Thomson Venture Economics, Apax, November

5 Reversal of the economic cycle European M&A activity and weight of private equity deals European M&A Trends (EV, in bn) French M&A Trends (EV, in bn) All M&A PE Funds Buy-Outs PE Funds Exits All M&A PE Funds Buy-Outs PE Funds Exits Source: MergerMarket, as of April Reversal of the economic cycle Private equity funds flow Funds Flow in Europe for All PE Funds (in bn) Funds Raised Investments Divestment Source: EVCA 10 5

6 SOMMAIRE The private equity market Altamir Amboise : identity and history 2008 half-year performance A quality portfolio Stock market performance Outlook Appendices 11 Altamir Amboise: identity The listed mid-cap specialist Altamir Amboise is a private equity company listed on Euronext Paris, Compartment B It gives access, via the stock market, to a diversified portfolio of growing companies It invests and disinvests jointly with the funds (FCPR) managed by Apax Partners SA The level of co-investment is reviewed every 6 months according to the available cash This level has been 43% in every new investment made by Apax France VII since July 2007 As co-investor, Altamir Amboise benefits from the Apax Funds majority positions in the companies of the portfolio 12 6

7 Apax Apax Partners Partners SA SA A major private equity player A pioneer with over 30 years experience built up over the course of contrasting economic cycles A mid-cap specialist in France and Europe* One of the biggest and most experienced teams in France: 28 investment professionals organised by sector 10 partners with an average seniority of 15 years in the company More than 2 billion in assets under management A history of performance * Apax Partners Worldwide LLP, headquartered in London, specialises in large-cap LBOs at global level 13 Apax Partners SA A differentiated investment strategy Growth companies: we provide close long-term support (5 years on average) to build world-class companies Sector specialisation: since 1990, we have chosen to invest in promising sectors where we have solid expertise and dedicated teams (Tech & Telecom, Media, Retail & Consumer, Healthcare, Business & Financial Services) Broad range of transactions: LBO, growth, PIPE, PtoP, etc. Majority or key investor Objective: 3 to 5 times money invested 14 7

8 Altamir Amboise History 1995: creation of Altamir & Cie 2006: IPO of Amboise Investissement ( 119 million raised) with the aim of merging the two vehicles over the medium term 2006/2007: acceleration of the rate of investment and early convergence of the two portfolios June 2007: merger of Altamir and Amboise Investissement to form Altamir Amboise July 2007: 120 million capital increase March 2008: exercise of warrants (ex Altamir) September 2008: exercise of warrants (ex Amboise Investissement) 15 Change in total assets Long-term goal: to build a 1 billion vehicle ( million) Dec Dec Dec Dec Dec Dec Jun 08 Altamir Altamir + Amboise Inv. Altamir Amboise 16 8

9 Exercise of September 2008 warrants Exercise period: 15 to 19 September 2008 included Exercise price: 6 Exercise ratio: 1 warrant entitled the holder to subscribe for new shares (with a minimum of 4 BSAs to participate to the operation) Stock-market identity: Trading name: ALTAMIR AMB BS0908 ISIN: FR Ticker: LTBS9 17 SOMMAIRE The private equity market Altamir Amboise : identity and history 2008 half-year performance A quality portfolio Stock market performance Outlook Appendices 18 9

10 Change in NAV per share NAV per share has decreased by 19.1% since 31 December 2007 Excluding dilution linked to the capital increases (exercise of March 2008 warrants and reinvestment of the dividend in shares), the decrease would have been 14.4% (1) % 31 Dec Dec Jun 2008 (In euros, share of limited partners holding ordinary shares) (1) NAV at 31 Dec 06 = 13.92: derived from the published NAVs for Altamir ( 225.8) and Amboise Investissement ( 14.52) 19 Net statutory loss In the absence of any realisations in the first half 2008, the net statutory loss is due to the portfolio markdowns reflecting the decrease in public multiples million, unaudited net statutory loss at 30 Jun

11 Reminder of the realisations performances For the last four years, on average +108% uplift between the actual realisations proceeds and the carrying values of these companies at the outset of the year in which the realisation took place. 2007: +124% between the realisations and the carrying valuations of the companies at 31/12/ : +76% between the realisations made and the carrying valuations of the companies at 31/12/ : +128% between the realisations made and the carrying valuations of the companies at 31/12/ : +92% between the realisations and the carrying valuations of the companies at 31/12/ A steady pace of investment in the first half millions of euros invested and committed in the first half 2008 (in millions) months 2008 Altamir Amboise Amboise Investissement Altamir Number of new companies 22 11

12 A steady pace of investment in the first half investments and commitments : Maisons du Monde (25.2M ) The funds managed by Apax and LBO France jointly acquired a majority stake in one of the leading French interior design brands on the dynamic home decoration market (decorative objects and furnishings). Present in France, Belgium, Spain and Italy, Maisons du Monde has 175 stores and a turnover of 230 million in Altran Technologies (34.8 M ) Altrafin Participations, a holding company controlled by the Apax funds, became the key shareholder of Altran Technologies with 19.2% of the share capital following the acquisition of founders shares and the subscription to the company s capital increase. Through Altrafin Participations and the partnership (Société En Participation) set up with the founders, the Apax funds control 31.4% of the company voting rights. Altran Technologies is the European leader in innovation consulting. It employs over 17,000 people in 20 countries and has a turnover of 1.6 bn in No realisation in the first half 2008 A recap of IEE took place in January 2008 (in million) months 2008 Proceeds Capital gains 24 12

13 SOMMAIRE The private equity market Altamir Amboise : identity and history 2008 half-year performance A quality portfolio Stock market performance Outlook Appendices 25 A quality portfolio Breakdown of total assets at 30/06/2008: Portfolio of 40 companies: 384 M Portfolio 23 LBO/Growth companies* = 97% of portfolio at fair value 16 Venture companies = 3% of portfolio at fair value 17 unlisted companies 6 listed companies 9 unlisted companies 7 listed companies Cash: 34 M Reminder: Cash is invested in securitised monetary products (MTNs) * 23 companies including a differed payment on 30/06/08 on Aprovia, which last asset has been sold in october

14 A quality portfolio The 10 first holdings represent 83% of the portfolio at fair value 40 companies at 30 June 2008 Cost in million Fair value * in million % portfolio at fair value Séchilienne-Sidec (Financière Hélios) % Vizada % Prosodie (Camélia Participations) % Faceo % Maisons du Monde % Royer % InfoPro Communications % Capio Hospitals % Afflelou % Altran Technologies % Total 10 companies % * including interest accrued 27 A quality portfolio The LBO/Growth portfolio has performed well Like-for-like rise in the portfolio s performance (22 companies): - Turnover: + 6.6% between H and H EBITDA: + 4.3% between H and H Retail & Consumer hit by the slowing down of the economy (between H1 07 and H1 08) Technologies Telecom/Media Retail & Consumer Healthcare Business & Financial Services Total Change in turnover + 8.3% % - 3.1% % - 1.0% + 6.6% Change in EBITDA % % % % - 5.2% + 4.3% 28 14

15 A quality portfolio A balanced portfolio enabling a good diversification of risks At 30 Jun 2008, at cost including commitments 21% 20% 7% 16% 16% 20% Technologies Telecom Retail & Consumer Media Healthcare Business & Financial Services 29 A quality portfolio Portfolio debt The LBO/Growth portfolio s debt decreased between 31 Dec 07 and 30 Jun Jun 2008 (2) 31 Dec 2007 (3) Debt multiple (1) Weighted average multiple based on the amounts invested by the Apax funds (1) Total net debt / LTM EBITDA (2) Sample consisting of 21 LBO/Growth companies; like-for-like (16 companies), the debt multiple at 30 Jun 08 was 4.36 (3) Sample consisting of 16 LBO/Growth companies 30 15

16 A quality portfolio Portfolio valuation multiples The decrease in NAV at 30 Jun 08 primarily reflects the drop in stock market multiples 30 Jun 08 (2) 31 Dec 07 (3) 30 Jun 07 Valuation multiple of comparables (1) Valuation multiple used by Apax (1) Weighted average multiples based on the amounts invested by the Apax funds in LBO/Growth companies, whether they are valued at cost, according to listed comparables or on the basis of the company s market price (1) Enterprise Value / LTM EBITDA (2) Sample consisting of 21 LBO/Growth companies; the average discount rate applied to the companies valued with a discount on the comparables is 15% (3) Sample consisting of 16 LBO/Growth companies 31 A quality portfolio 3/4 of the portfolio at 30 Jun 08 is valued on stock market multiples 1% 1% 36% 23% 38% 35% 40% 26% Portfolio at fair value at 30 Jun 2008 Portfolio at fair value at 31 Dec 2007 Securities valued at cost Securities valued with a 30% discount on the sample of listed comparables Securities valued on the basis of the stock price of the company or the listed operational company Other 32 16

17 SOMMAIRE The private equity market Altamir Amboise : identity and history 2008 half-year performance A quality portfolio Stock market performance Outlook Appendices 33 Change in share prices since 29 Jun Altamir Amboise: -45% Wendel: -52% Eurazeo: -36% KKR: -44% 3i: -24% Jun Sep

18 Change in Altamir Amboise s share price since 2 Jan Altamir Amboise is outperforming the SBF Jan 2002 SBF 250 Altamir Amboise share price + 72% + 0.5% 05 Sep Change in discounts/premiums 30 Jun Sep Dec Mar Jun 08 Altamir Amboise -28% -32% -40% -54% -47% Wendel +6% 0% 0% -22% -24% Eurazeo -11% -7% -15% -21% -21% KKR -14% -24% -25% -46% -43% 3i +25%* -1% -23% -28% * NAV at 30 Mar 2007 Sources: LPX estimates, Altamir Amboise 36 18

19 SOMMAIRE The private equity market Altamir Amboise : identity and history 2008 half-year performance A quality portfolio Stock market performance Outlook Appendices 37 Outlook for 2008 Continuation of the credit crisis Drastic decrease of M&A deals Economic slowdown, or even recession Reversal of the cycle for the next 2 to 3 years Cyclical slowdown in activity (wait-and-see attitude on the part of buyers and sellers) Slow but sure decrease in valuations Decrease in investments, recaps, realisations Longer holding period => Our vision: The economic environment will improve at the earliest in the second half of

20 Reminder of short-term objectives 2008 objectives (reminder) Investments: between 80 million and 130 million Realisations: between 40 million and 90 million Projected average cash: approx. 30 million => We are maintaining these objectives, even if they are challenging in the current climate, particularly with regard to realisations 39 Mid-term objectives 30 Jun Dec 2012 Shareholders equity (share of limited partners) NAV per share 405 m m Representing a CAGR of 15% in NAV per share 40 20

21 Conclusion Altamir Amboise: an investment opportunity A very undervalued share price A pure player on the mid market A quality portfolio The Partners of Apax, who have announced their intents to increase their holdings to between 15% and 20% of the capital by January 2009, hold as of today 15.5% of Altamir Amboise s capital. 41 SOMMAIRE The private equity market Altamir Amboise : identity and history 2008 half-year performance A quality portfolio Stock market performance Outlook Appendices 42 21

22 Valuation policy (since 31 Mar 2007) Compliance with the rules recommended by the EVCA (European Private Equity and Venture Capital Association) Reduction of the applied discounts based on the fair market value approach: Unlisted securities: For securities valued with multiples method: discount of up to 30% in relation to the sample of listed comparables after 12 months of holding (instead of 40% previously) For other securities, the method is unchanged: at cost the last significant operation on the capital Listed securities or unlisted securities valued on the basis of the listed operational companies: latest market price without any discount (instead of a discount of 20% - 30% previously) N.B. Listed securities subject to negociability restrictions are valued at the closing stock price with a discount of between 5% and 15% 43 Attractive tax regime The tax advantages of the SCR (Société de Capital Risque) No tax for the Company Reduced tax for European individual shareholders if the shares are held for 5 years: No dividend tax if reinvested during this period No tax on capital gains Payment of social tax Eligible to French PEA 44 22

23 Portfolio companies 45 Technologies 46 23

24 Telecom 47 Healthcare 48 24

25 Media 49 Retail & Consumer 50 25

26 Business & Financial Services 51 Altamir Amboise 25 September 2008 Maurice Tchenio, Chairman Monique Cohen, Deputy CEO 26