ATP PE Annual Report 2014

Transcription

1 ATP PE Annual Report 2014 ATP Private Equity K/S CVR-no Annual Report for the period 1 Januar December 2014 (9 th financial year) The annual report has been presented and reviewed by the Company s general assembly Copenhagen / 2015 Chairman ATP PE Annual Report

2 Company Details ATP Private Equity K/S Sjæleboderne 2, 1 st floor DK-1122 Copenhagen K Telephone: Fax: Website: info@atp-pep.com CVR-no.: Date of establishment: 7 April 2006 Registered office: Copenhagen Financial year: 1 January 31 December 9 th financial year Board of Directors Henrik Gade Jepsen (Chairman of the Board) Fredrik Martinsson Auditors Deloitte Statsautoriseret Revisionspartnerselskab Weidekampsgade 6 DK-2300 Copenhagen S Ownership ATP owns 100 % of the capital. Annual general meeting The annual general meeting takes place on 4 February ATP PE Annual Report

3 Contents CONTENTS 3 MANAGEMENT S STATEMENT 4 AUDITORS REPORTS 5 FINANCIAL HIGHLIGHTS 7 MANAGEMENT S REVIEW 8 ACCOUNTING POLICIES 11 INCOME STATEMENT 13 BALANCE SHEET AT 31 DECEMBER 14 STATEMENT OF CHANGES IN EQUITY 15 CASH FLOW STATEMENT 16 NOTES 17 PORTFOLIO 18 ATP PE Annual Report

4 Management s Statement Statement by Management on the annual report The Board of Directors and the Management have today considered and approved the annual report for the financial year 1 January to 31 December The annual report is presented in accordance with the Danish Financial Statements Act. In our opinion, the financial statements give a true and fair view of the Company s financial position at 31 December 2014 and of its financial performance for the financial year 1 January to 31 December We believe that the management commentary contains a fair review of the affairs and conditions referred to therein. We recommend the annual report for adoption at the Annual General Meeting. Copenhagen, 27 January 2015 Private Equity Advisors ApS Torben Vangstrup Klaus Rühne Board of Directors: Henrik Gade Jepsen Chairman of the Board Fredrik Martinsson ATP PE Annual Report

5 Auditors reports Internal Auditors Report To the investor of ATP Private Equity K/S We have audited the financial statements for ATP Private Equity K/S for the financial year The financial statements have been prepared in accordance with the Danish Financial Statements Act. Basis of opinion We conducted our audit in accordance with the Danish Financial Supervisory Authority's Executive Order on Auditing of the Danish Labour Market Supplementary Pension Scheme (ATP), the Labour Market Occupational Diseases Fund (AES) and the Employee's Capital Pension Fund (LD) and in accordance with the international Auditing Standards. Those standards require that we plan and perform our audit to obtain reasonable assurance that the financial statements are free from material misstatement. The audit was performed in accordance with the division of responsibilities agreed with the external auditors and included an assessment of procedures and internal controls established, including the risk management organized by Management relevant to the reporting processes and material business risks. Based on materiality and risk we examined, on a test basis, the basis of amounts and other disclosures in the financial statements. Furthermore, the audit included evaluating the appropriateness of the accounting policies applied by Management and the reasonableness of the accounting estimates made by Management, as well as evaluating the overall presentation of the financial statements. We participated in the audit of risk and other material areas, and we believe the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion. Our audit did not result in any qualification. Opinion In our opinion, the procedures and internal controls established, including the risk management organized by Management relevant to the reporting processes and material business risks, are working satisfactorily. Furthermore, in our opinion, the financial statements give a true and fair view of the Company's assets, liabilities and financial position at 31 December 2014 and of its financial performance and cash flows for the financial year 2014 in accordance with the Danish Financial Statements Act. Statement on the management s review Pursuant to Executive Order on Financial Reporting by the Danish Labour Market Supplementary Pension Scheme and the Supplementary Labour Market Pension Scheme for Disability Pensioners (available in Danish only), we have read the management s review. We have not performed any further procedures in addition to the audit of the financial statements. Hillerød, 27 January 2015 Peter Jochimsen Internal auditor ATP PE Annual Report

6 Independent Auditor s Report To the investor of ATP Private Equity K/S We have audited the financial statements of ATP Private Equity K/S for the financial year 1 January to 31 December 2014, which comprise the accounting policies, income statement, balance sheet, statement of changes in equity, cash flow statement and notes. The financial statements have been prepared in accordance with the Danish Financial Statements Act. Management's responsibility for the financial statements and the management report Management is responsible for the preparation of financial statements that give a true and fair view in accordance with the Danish Financial Statements Act and for such internal control as Management determines is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. Auditor's responsibility and basis of opinion Our responsibility is to express an opinion on the financial statements based on our audit. We conducted our audit in accordance with International Standards on Auditing and additional requirements under Danish audit regulation. This requires that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor's judgement, including the assessment of the risks of material misstatements of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity's preparation of financial statements that give a true and fair view in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity's internal control. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates made by Management, as well as the overall presentation of the financial statements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion. Our audit has not resulted in any qualification. Opinion In our opinion, the financial statements give a true and fair view of the Company s financial position at 31 December 2014 and of the results of its operations and cash flows for the financial year 1 January - 31 December 2014 in accordance with the Danish Financial Statements Act. Statement on the management s review Pursuant to the Danish Financial Statements Act, we have read the management commentary. We have not performed any further procedures in addition to the audit of the financial statements. On this basis, it is our opinion that the information provided in the management commentary is consistent with the financial statements. Copenhagen, 27 January 2015 Deloitte Statsautoriseret Revisionspartnerselskab Kasper Bruhn Udam State Authorised Public Accountant Bill Haudal Pedersen State Authorised Public Accountant ATP PE Annual Report

7 Financial Highlights 8,6% 1.34x 0.94x Internal rate of return since 2006 Total value to total amount of capital paid Distributed to total amount of capital paid 18,1% 22+4 DKKm 1,270 Annual return in 2014 Funds and co-investments Net distributed to Profit amounted to DKKm 660 with a total value of DKKm 3,9D0 investors in 2014 Financial Highlights DKK' Income statement: Profit (loss) from investment activities 676, , , , ,585 Operating profit (loss) 670, , , , ,280 Profit from financial items (185) (125) (87) (9) 57 Profit (loss) for the year 660, , , , ,676 Balance sheet: Total assets 4,025,233 4,527,013 5,292,843 5,426,280 5,632,662 Equity 3,895,515 4,505,082 5,288,375 5,246,855 5,512,022 Cash flows: Operating activities 1,325,393 1,299, , ,548 (311,570) Financing activities (1,269,967) (1,341,965) (238,408) (674,703) 399,434 Financial ratios: Total Value to paid In 1.34x 1.28x 1.23x 1.21x 1.18x Distributed to paid In 0.94x 0.80x 0.66x 0.61x 0.49x IRR 8.6% 7.9% 7.4% 7.7% 7.7% For terms and definitions please refer to the accounting policies ATP PE Annual Report

8 Management s Review Main Activity ATP PE is an evergreen fund-of-funds with an investment portfolio comprising of private equity fund-of-funds, private equity funds and direct investments. Investment via a fund-of-funds, entails a long term strategy. The period from ATP PE s commitment to a portfolio fund until the sale of the last investment, may take years. Overview of capital structure See an overview of ATP PE s current capital structure below. Portfolio - development and composition ATP PE has committed DKKm 10,821 to the current portfolio comprising 10 private equity fund-of-funds, 12 private equity funds and 4 direct investments. The geographic exposure of the portfolio is 44 % in the US and 56 % in Europe. The chart below, illustrates the composition of commitment to the portfolio at 31 December 2014 as well as the average historical return per segment, for the current portfolio and portfolio disposed in DKKm 14,000 12,000 10,000 8,000 6,000 4,000 DKKm 10,000 9,000 8,000 7,000 6,000 5,000 4,000 3,000 2,000 1, x Segment - allocation and return 1.76x 1.38x 0.80x 1.37x TVPI 1.80x 1.60x 1.40x 1.20x 1.00x 0.80x 0.60x 0.40x 0.20x 0.00x 2,000 0 Commitment and paid in Fair value and distributed Fair value Distributed Remaining commitment Paid in Total commitment TVPI The return for 2014 is illustrated per segment in the chart below. Market Development In 2014 the US realized a continued high and rising investment and exit activity, measured in number of transactions. In Europe, the level from 2013 maintained. Growth in earnings in the underlying portfolio companies has supported the positive development in particular in the US. Additionally, the financial sector in both the US and Europe has been even more prepared to finance private equity transactions by providing favorable packages with covenants more lenient than the terms in 2006/07. Market conditions for private equity in Europe are expected to be challenged by low to no market growth, whereas high investment and exit activity, aggressive financing opportunities and continued growth in earnings in the underlying portfolio companies, are expected to generate a positive return in Prospects for growth in the US are improved and thereby the ability to deliver higher returns. Fundraising activity has been high, which is attributable to a high exit activity resulting in a high level of liquidity returned to investors. Furthermore investors have turned to the private equity industry in search for returns. This has led to a relapse into imbalance between committed, drawn, realized and raised capital. This may draw certain parallels to the market situation in In regards to risk concerns, the underlying portfolio companies have been through a financial crisis and is expectedly better prepared for a significant deterioration of market conditions. Return in % Return % 60% 50% 40% 30% 20% 10% 0% -10% ( m): return in DKKm Total 18% -4% (-3m) 21% (74m) 14% (506m) 69% (75m) The return for 2014 of 18 % is higher than the return of 12 % in The return is affected by the positive development in quoted prices for comparable listed companies, as well as growth earnings and an increase in debt repayments in the portfolio companies. The internal administrative expenses amounted to DKKm 6 in 2014, corresponding to 6 basis points of total capital commitment from the investor. In comparison to similar fund-of-funds, the administrative expenses are low. ATP PE Annual Report

9 In 2014, ATP PE experienced an exchange gain on portfolio funds in foreign currency (primarily USD), however an equivalent exchange loss was realized on forward exchange contracts. The net exchange gain for ATP PE in 2014 amounted to DKKm 12. Balance sheet At the end of 2014, net assets of the Company amounted to DKKm 3,896. Net assets are expected to decrease in the years to come, as the portfolio funds, in particular the fund-of-funds exits the underlying portfolio. Cash flow A total of DKKm 308 was paid in by the investor to ATP PE, to finance portfolio funds investments as well as to settle differences in forward exchange contracts. Throughout the year, the investor of ATP PE received distributions of DKKm 1,578. The curve below illustrates ATP PE s accumulated net cash flow since the merger in The net cash flow has been unusually affected over time by attractive refinancing and IPO opportunities in 2006 and 2007, whereas challenging market conditions for exits in 2008 and 2009 affected the level of repayments negatively. Due to the maturity of the portfolio and a high exit pace, the net cash flows have been positive since For the years 2015 and 2016, the current portfolio is expected to continue to generate positive cash flows. The chart below illustrates fair value of investments per segment as of 31 December DKkm 4,000 3,500 3,000 2,500 2,000 1,500 1, Segment - exposure Fair value ATP PE ongoingly monitors the changes in the valuation of underlying portfolio investments in order to have a clear picture of fair value of the portfolio. Monitoring is done through regular communication with the funds and by participation on advisory boards. ATP PE is represented on advisory boards in 9 out of 12 private equity portfolio funds. Risks Investment risks DKKm Accumulated net cash flow Since ATP PE s commitments primarily have been given to fundof-funds with a well-diversified portfolio and a large number of portfolio companies, the investment risk is considered low. Currency risks 0 Q2 06 Q4 07 Q2 09 Q4 10 Q2 12 Q The Company s currency risks are related to investments executed in a number of currencies. As fluctuations in currency may affect profit/loss, cash flows and equity, it is Company policy to hedge financial risks in currencies other than EUR. Currency hedging is comprised of forward exchange contracts. On an ongoing basis, hedging is made on fair value of investments as a basis, while risks on unused commitments to portfolio funds are not Accumulated net cash flow The table below shows how the value of the portfolio at 31 December 2014 would be affected by fluctuation in exchange rates, if currency hedging did not take place. Portfolio value By the end of 2014 the value of the portfolio amounted to DKKm 3,950 compared to DKKm 4,401 at the end of The reduction in fair value is primarily attributable to distributions of net DKKm 1,465 from the portfolio in 2014, including realized gains. The valuation of investments in non-listed companies is associated with special risks. The funds fair value valuations are normally used if the funds report in accordance with the International Private Equity and Venture Capital Valuation Guidelines, IFRS or US GAAP. With regard to investments made by venture funds, the valuation is based on reporting from the funds. Venture funds typically value companies in accordance with the pricing in recent funding rounds. Effect in DKK'000 of: Remaining investments Remaining commitment 1% increase in USD/DKK 23,093 3,987 1% increase in GBP/DKK 5, % increase in SEK/DKK % increase in NOK/DKK % increase in EUR/DKK 4, % increase in AUD/DKK % increase in CAD/DKK 84 0 ATP PE Annual Report

10 Interest rate risks Apart from trade balances with suppliers and forward contracts, ATP PE has no liabilities. Debt is often raised in the funds portfolio investments, and consequently an indirect interest rate risk exists, which could affect future investment results. Credit risks The Company s credit risks partly relate to primary financial assets and partly to derivative financial instruments with a positive market value. The Company is not subject to any material risks in respect of customers or business partners. Liquidity risks The limited partner ATP is an acknowledged financial institutional investor who is under the supervision of the Danish Financial Supervisory Authority. For this reason the liquidity risk is assessed as being extremely low. Organization and corporate governance Social responsibility guidelines The investments of ATP PE are mainly made through private equity funds in Europe and North America. Social responsibility is often a prerequisite for lasting, sound earnings and maintaining the value of investments. In order to ensure compliance with ATP s social responsibility guidelines and the portfolio fund s investments, a separate agreement on this policy is made with the funds. The agreement among others requires compliance with laws and rules laid down by national authorities in the markets in which portfolio funds operate or international organizations endorsed or ratified by Denmark. In addition, investments are not to be made in countries that are subject to a trade embargo enforced by the UN or the EU and acceded by Denmark. Expectations for 2015 The profit for 2015 is expected to be at level or lower than the profit of Events after 31 December 2014 No significant events have taken place after the year end. In May 2014, the company's senior management was changed as ATP s former CFO resigned from the Board of Directors due to retirement. Pursuant to the Company s articles of association, the Company's Board of Directors has formed a quorum with only 2 board members since 6 May The Board of Directors is expected to be increased to a minimum of 3 members at the Company s annual general meeting on 4 February Corporate social responsibility As part of the ATP Group, ATP PE has corporate social responsibility. This means that any measures implemented should contribute to the realization of ATP s overall objective: to provide basic financial security for current and future pensioners. As a business, it is important for ATP PE to have a stable and well-educated workforce and a good physical and mental working environment, including flexibility. Reference is made to the ATP Group s Annual Report for 2014, where social responsibility is described in the Management s Review and in a separate article. ATP PE Annual Report

11 Accounting Policies Miscellaneous The annual report for 1 January 31 December 2014 for ATP Private Equity K/S has been prepared in accordance with the provisions applying to medium-sized reporting class C enterprises under the Danish Financial Statements Act. The accounting policies used in the preparation of the financial statements are apart from the below, consistent with those of last year. Presentation of the income statement has been changed to display all income relating to investments as Income from other securities and investments". Presentation of the Cash flow statement is compacted. Distinction between transactions with portfolio funds and transactions with co-investments has been removed. Transactions are presented net as "Contributions to investment portfolio" and "Distributions from investment portfolio". Notes 1 and 2 are changed so that realized and unrealized gains and losses are presented net. Presentation of notes 4 and 5 is amended to reflect the change in book value from beginning to year end, by presenting the actual cash flows with the investment portfolio and revaluation adjustments. Presentation of Limited partners capital in the balance sheet and in Statement of changes in Equity is changed to display capital paid in and distributed amounts gross as "Limited partners capital" and "Distributions to limited partner. All changes have led to an adjustment of the comparative figures. The adjustments have no impact on profit or equity. Recognition and measurement Assets are recognized in the balance sheet when it is probable that future economic benefits will flow to the Company and the value of the asset can be reliably measured. Liabilities are recognized in the balance sheet when an outflow of economic benefits is probable and when the liability can be reliably measured. On initial recognition, assets and liabilities are measured at cost. Subsequently, assets and liabilities are measured as described below for each individual item. In recognizing and measuring assets and liabilities, any gains, losses and risks occurring prior to the presentation of the annual report that evidence conditions existing at the balance sheet date are taken into account. Foreign currency translation Transactions denominated in foreign currencies are translated into DKK at the exchange rates at the transaction date. Investments, receivables and payables denominated in foreign currencies are translated into DKK at the exchange rates at the balance sheet date. Realized and unrealized foreign exchanges gains and losses are recognized in the income statement. Derivative financial instruments Derivative financial instruments are initially recognized in the balance sheet at cost and subsequently measured at fair value. Positive and negative fair values of derivative financial instruments are included in other receivables and payables, respectively, and set-off of positive and negative values is only made when the Company has the right and the intention to settle several financial instruments net. For derivative financial instruments that do not qualify for hedge accounting, changes in fair value are recognized in the income statement as capital gains and losses Income statement Income from other securities and investments Income from other securities and investments comprise realized value adjustments as well as appreciations of previous impairment losses and depreciations of previous appreciations. Included are also unrealized value adjustments on investment portfolio, interest income and dividends from investment portfolio and foreign exchange gains and losses on transactions in foreign currencies. Administrative expenses Administrative expenses comprise costs incurred during the year on the Company s investment activities. Administrative expenses comprise fee to ATP in respect of the administrative work performed by ATP on behalf of the Company. Financial income and expenses Financial income and expenses comprise interest income and expenses on cash and cash equivalents. Foreign tax The Company is not independently taxable, as the profit/loss of the Company is taxed through the limited partner and general partner s taxable income. Tax in the income statement is dividend taxes from foreign portfolio companies. Income is recognized in the income statement as earned, including value adjustments of financial assets and liabilities measured at fair value or amortized cost. Equally, costs incurred to generate the year's earnings are recognized, including impairment losses. ATP PE Annual Report

12 Balance sheet Investments in other securities and investments Investments in other securities and investments comprise investments in portfolio funds and portfolio companies and are measured at fair value at the balance sheet date. Value adjustments are recognized in the income statement on a current basis. Management fees paid to portfolio companies are capitalized together with the investment in the individual portfolio company. Management fees are amortized over the period to which they relate. Investments in portfolio companies that do not have a quoted market price are measured based on the latest trading price either in the form of a capital increase or a partial sale based on the value of comparable companies and using traditional valuation methods. Financial Ratios The financial ratios stated in the survey of financial highlights have been calculated as follows: Total Value to Paid in: Value of distributions to the investor + value of remaining portfolio / paid in capital from the investor. Distributed to Paid in: Value of distributions to the investor / paid in capital from the investor. IRR : Calculated on the basis of realized cash flows between ATP PE and the investor, the associated transaction date and value of equity at year end. If the fair value cannot be determined reliably, cost is used, which comprises acquisition costs. Receivables Receivables are measured at amortized cost. Write-downs are made for bad debt losses based on individual assessments of receivables. Liabilities Liabilities are measured at net realizable value. Cash flow statement The cash flow statement shows the cash flows from operating and financing activities for the year, the year's changes in cash and cash equivalents as well as the Company's cash and cash equivalents at the beginning and end of the year. Cash flow from operating activities Cash flows from operating activities comprise administrative expenses adjusted for changes in working capital, including cash flows between the Company and funds that are invested in and direct investments. As the Company s primary activity is investment activity, investment activities are not disclosed separately. Cash flow from financing activities Cash flows from financing activities comprise paid-in capital and distributions to the limited partners and the general partner of the limited partnership. Cash and cash equivalents comprise cash and short-term marketable securities which are subject to an insignificant risk of changes in value. ATP PE Annual Report

13 Income Statement ATP PE DKK'000 Note Investment activities Income from other securities and investments 1 676, ,875 Profit from investment activities 676, ,875 Administrative expenses 2 (6,407) (7,167) Operating profit 670, ,708 Financial items Financial income 0 1 Financial expenses (185) (126) Total financial items (185) (125) Profit (loss) before tax 669, ,583 Foreign tax (9,565) (15,912) Profit (loss) for the year 660, ,671 Proposed profit (loss) allocation: Profit (loss) for the year 660, , , ,671 ATP PE Annual Report

14 Balance sheet at 31 December ATP PE DKK'000 Note Assets Non-current assets Investments Other securities and investments Total investments Total non-current assets Current assets Receivables Receivables from related parties Other receivables Total receivables Cash and cash equivalents Total current assets Total assets Equity and liabilities Equity Limited partners' capital Retained earnings Distributions to limited partner ( ) ( ) Total equity Long-term debt Payables to related parties Total long-term debt Current liabilities Trade payables Payables to related parties Other payables Total current liabilities Total liabilities Total equity and liabilities Contingent liabilities 6 Related party disclosures 7 ATP PE Annual Report

15 Statement of changes in Equity ATP PE DKK'00 Limited Partners' capital Retained earnings Distributions to Limited Partner Total Balance at 1 January ( ) Contributions, Limited Partners' capital Distributions to Limited Partner - - ( ) ( ) Retained earnings for the period Balance at 31 December ( ) Balance at 1 January ( ) Contributions, Limited Partners' capital Distributions to Limited Partner - - ( ) ( ) Retained earnings for the period Balance at 31 December ( ) In accordance w ith the limited partnership agreement, the investor have agreed to pay up to DKK'000 11,250,000 as the capital requirements arises in the Company. At 31 December 2014 the investors' remaining commitments totaled DKK'000: ATP PE Annual Report

16 Cash flow statement ATP PE DKK' Contributions to investment portfolio (200,199) (268,950) Distributions from investment portfolio 1,665,584 1,451,178 Interest income, cash and cash equivalents (185) (125) Exchange gains and losses, cash and cash equivalents 2,274 (2,705) Administrative expenses (6,407) (7,167) Changes in w orking capital (135,674) 127,620 Cash flow from operating activities 1,325,393 1,299,851 Contributions from investors 307, ,718 Distributions to investors (1,577,731) (1,447,683) Cash flow from financing activities (1,269,967) (1,341,965) Changes in cash and cash equivalents 55,426 (42,114) Cash and cash equivalents at 1 January 10,730 52,844 Cash and cash equivalents at 31 December 66,156 10,730 ATP PE Annual Report

17 Notes DKK' Income from other securities and investments Value adjustments, investment portfolio Exchange gains and losses, investment portfolio ( ) Exchange gains and losses, investment forw ard exchange ( ) Exchange gains and losses, investment cash or cash equivalents (2.705) Total income from other securities and investments Administrative expenses There are no employees in the Company. No remuneration has been paid to the Board of Directors. 3 Other securities and investments Balance at 1 January Contributions to investment portfolio Distributions from investment portfolio ( ) ( ) Value and currency exchange adjustments Balance at 31 December Other receivables Receivables, interests Other payables Payables, investment commitments Contingent liabilities Commitments, investments Apart from the above, there are no guarantees or pledges of the Company. 7 Related party disclosures ATP Private Equity K/S' related parties include the follow ing: Controlling interest ATP, Kongens Vænge 8, DK-3400 Hillerød Ownership The follow ing shareholders ow n at least 5% of the voting rights or as a minimum 5% of the share capital: ATP, Kongens Vænge 8, DK-3400 Hillerød ATP PE Annual Report

18 Portfolio Current portfolio at 31 December 2014 Fund Jurisdiction Segment Axcel II Denmark Small buy out Dansk Erhvervsinvestering A/S Denmark Direct investment Dansk Vækstkapital Denmark Fund-of-funds Danske PEP I Denmark Fund-of-funds Danske PEP II EUR Denmark Fund-of-funds Danske PEP II USD Denmark Fund-of-funds Danske PEP III EUR Denmark Fund-of-funds Danske PEP III USD Denmark Fund-of-funds DKA I Komplementar Denmark Small buy out DKA I P/S Denmark Small buy out Goldman Sachs PEP 2002 Cayman Islands Fund-of-funds Goldman Sachs PEP 2004 Cayman Islands Fund-of-funds Goldman Sachs PEP 2005 Cayman Islands Fund-of-funds Goldman Sachs PEP IX Cayman Islands Fund-of-funds HealthCap IV Delaware Venture IT Provider IV Cayman Islands Venture Nordic Mezzanine II Guernsey Small buy out Verdane NVP II (f.k.a. Nordic Venture Partners II K/S) Denmark Venture IVON A/S Denmark Direct investment Seed Capital I Denmark Venture Seed Capital II Denmark Venture Sunstone Biomedicinsk Venture Annex I Denmark Venture Sunstone Biomedicinsk Venture Annex III Denmark Venture Sunstone Biomedicinsk Venture III Denmark Venture Symbion A/S Denmark Direct investment VP Securities Denmark Direct investment For further information please visit our website ATP PE Annual Report

19 ATP PEP Sjæleboderne 2, 1 st floor DK-1122 Copenhagen K Telephone Fax info@atp-pep.com ATP PE Annual Report