Altamir SCA ($LTA)

Welcome, everyone, to the Altamir 2025 Results Presentation. I will now hand over to Maurice Tchenio, Chairman and CEO of Altamir Gerance; and to Eric Sabia, our Chief Financial Officer.

Thanks, Claire. And I am delighted to inform you that this is my final SFAF meeting after 30 years of dedicated and loyal service because as you will discover at the end of this presentation, I have organized my succession, which will take effect on the 1st of May next. Therefore, without wasting time, let's move into the presentation as we usually do and first by talking about the market in which Altamir operated in 2025. As you can observe, regarding investment, the market has approximately rebounded with EUR 336 billion of buyout transactions completed over the year, which brings it back to virtually the same level as 2022. However, the difference is that this is primarily driven by very large deals and the mid-market remained relatively stable. Regarding divestitures, those executed through sales during the 2025 year. In mergers and acquisitions, there is another rebound of EUR 273 billion, which is practically the level of 2021, but with, again, 2 major differences. The first is that like acquisitions, it concerns very large transactions. And the second major difference is that the stock markets were relatively closed for operations for small operations, again, more open for large operations. In this context, your company is registering for the first time a negative growth of 4.8% in its revalued net assets, including the dividend that was paid versus a 1.4% growth in 2024. So for over 10 years, this is the first time we see negative performance, which we'll explain shortly. The company still managed to maintain a positive EBITDA progression of 8.6%, but much lower than that of 2024, which was 26% roughly. In terms of divestment, we carried out EUR 139 million in divestments, and we made almost the same investment volume of EUR 142 million in this new company and taking into account the time lags, our cash position worsened by EUR 17 million at the end of 2024 to minus EUR 57 million at the end of 2025, and we will revisit that. Regarding divestitures, as you can see on this table, we are at a relatively low level of EUR 139 million, comprising EUR 82 million from complete sales and EUR 57 million from partial sales. We exited 5 companies and the details are on the following page. The primary exit was Marlink, which was held by the MidMarket VIII and MidMarket IX funds as well as a direct co-investment. Then there was an exit from the listed company, Verint, where we recovered 1.1x our cost versus 2.1x our cost on Marlink. Conversely, we recorded 2 write-offs that were already heavily impaired. Eating Recovery Center in the U.S. and Vocalcom, which was the first investment of the Impact VIII LP fund. Concerning partial divestitures, most of these were realized through dividends or stock market sales for those companies that were publicly traded stock exchange. At the investment level, again, EUR 142 million invested, EUR 130 million in 7 new companies and EUR 12 million in follow-on. Among these 7 new companies, we already mentioned CohnReznick in the first half, which is one of the largest U.S. audit and tax consulting firms. HRK Lunis, the first German investment for Seven2, one of the largest independent German wealth management platforms, independent Zwart Techniek, which is, in fact, a Belgian company, as I see it. It is Belgian Dutch and its operations are actually in the sector of providing energy resilience solutions, especially for the new and vast data centers, which represent the majority of their business. And then there is Norva24, which is a leading provider of infrastructure maintenance services underground in Northern Europe. This infrastructure maintenance sector is extremely promising in private equity. Furthermore, we reinvested via the Duality fund into Crystal, which we still hold through the Seven2 X fund. We have 2 positions in services out of 7 investments, 5 were in services, 2 in tech and telco. Marlink from which we exited, but we returned to Marlink in co-investment through the Duality fund for EUR 11 million. And finally, Finastra, a new company owned by the fund Apax XI, which provides software for financial services. So that covers the investment level. Added to this are EUR 37 million invested through Altaroc Odyssey '21, '22, '23 and '24 funds. And you can see these funds are heavily deployed, Fund 21 at 105%, Fund '22 at 61%, Fund '23 at 45%, Fund '24 at 17%. So they have a fairly regular investment pace. And moreover, we added EUR 10 million to the Digital II and Apax development funds, which are also quite heavily deployed. So we have several co-investments that are essentially to finance acquisitions. Acquisitions are all positive follow-ons in the sense that they help build up each of our portfolio companies. In summary, divestment activity was EUR 139 million in divestments, EUR 142 million in investments, so nearly equal. This means, as I said before, a 4.8% decrease in our NAV going from EUR 35.06 to EUR 32.32, including the EUR 1.06 dividend paid in September. So for the first time, the NAV decline isn't just the dividend but a reduction in underlying activity. Now I'll give the floor to Eric Sabia to explain why we are down 4.8%.

Thank you, Maurice. Indeed, why has the active net decreased over the period? Page 21 shows the NAV bridge for 2025. The NAV is down EUR 100 million. 40% of the drop is due to the dividend detached, as Maurice stated at the end of September 2025, the last part amounting to EUR 38.7 million. 50% of the drop comes from expenses, both direct and indirect costs for Altamir and also the financial costs because the company made heavy use of its credit lines and paid interest on them. Lastly, 10% of the reduction is attributed to the portfolio, specifically regarding value creation at negative EUR 30.1 million, which is partially counterbalanced by a reversal of the provision for accrued interest, both directly and within the underlying funds up to EUR 17 million. Thus, all these elements explain the EUR 100 million drop for the year. The next page details the value creation.

Eric wants to mention that EUR 30 million of the 10% portfolio drop is due to ForEx. We can say that most of the EUR 30 million portfolio decrease is from ForEx, meaning the dollar, specifically the euro-dollar rate, which was very unfavorable throughout the year. Thank you for the interruption. My apologies.

Regarding value creation, the portfolio detail shows a EUR 30.1 million decrease. So despite the negative currency effect, all sectors are up, Tech & Telco, Healthcare and Services. Only Consumer is showing a decline. Consumer is declining because of THOM. Maurice will come back in a few moments to discuss the decline of THOM.

But essentially, the drop in THOM comes mainly from the rise in the stock price of gold. If we examine the current situation, we have EUR 30 million in negative ForEx effects and a EUR 63 million drop in THOM's value. If we correct for the 20% accrued interest, that leaves only a EUR 42 million decrease. So EUR 30 million plus EUR 40 million equals EUR 70 million caused by 2 external factors, the dollar rate and the very significant increase in the price of gold. If we exclude these 2 external and negative events, we would have a growth in the revalued net asset, not a decrease. Thank you, Eric. Thank you.

And so as we observed on the preceding slide, EUR 13.3 million in value reduction is also accounted for by divestments made during the year involving the 3 companies: Vocalcom, [indiscernible] and Verint. On the next slide, Page 23, you have the detail of the portfolio evolution in terms of market value. The portfolio dropped by just over EUR 100 million, mainly due to sales during the year. The new investments added to the portfolio are not offsetting the divestments realized over the year. However, in terms of portfolio at cost, the portfolio remains at a good level compared to the social aid situation. The portfolio at cost is just over EUR 1 billion on December 31, 2025, versus [ EUR 1,080 million ] 12 months before. But the key indicator to remember is that we remain well invested relative to the equity capital, which allows us to be confident that tomorrow, we will be able to deliver value on these new investments. Regarding valuation, almost the entire portfolio is valued using comparable multiples. As of December 31, only 2% of the portfolio is valued based on the share prices of listed companies. As of December 31, we only have 3 companies left that are listed. Page 26 shows the uplift evolution. The uplift, I remind you, is the difference between the sale value of the assets in the portfolio and the valuation with which we held those assets on our books just before the sale. And for the first time in Altamir's history, we are recording a negative uplift figure of EUR 112.2 million in sale proceeds versus EUR 130 million in valuation right before the sale. This reflects the market again. The market is more difficult. The companies -- the GPs must potentially accept price reductions in order to sell their assets under good conditions. And we have a negative uplift of 14% over the fiscal year on the 3 companies we just mentioned, [indiscernible], Vocalcom and [indiscernible]. Maurice, I'll give you the floor for commitments. Thank you very much.

Yes. So as you can see, we have a commitment level at year-end December of EUR 312 million, not including EUR 130 million in recallable distributions, most of which, by the way, will not be called back. But of those EUR 312 million, we already have EUR 113 million, almost EUR 112 million already committed. So this is the best level in 10 years, the best level of commitment we have as we have already chosen not to renew a commitment in Seven2 XI which is not yet in its fundraising stage, nor in the Apax XII fund, which is also scheduled to begin its next fundraising round shortly. This, therefore, leaves my incoming successor the possibility given this low commitment level to define a new strategy for Altamir and have the necessary maneuverability. So if we move from commitments to the cash situation, fortunately, we have very few commitments as our cash on December for the year 2025 is very tight, with EUR 57 million socially, but EUR 194 million, including commitments that were made. And against that, we have EUR 135 million in lines of credit, EUR 95 million for Altamir and EUR 40 million for Astra, an Altamir subsidiary. And so this is the reason why we have recommended to the Supervisory Board, which itself decided to recommend to the General Shareholders' Meeting to waive the dividend payment for the 2025 fiscal year as our cash reserves would not permit us to enter an extremely difficult financial position. On post-closing events, Apax XI Fund has announced in the past months an investment in an Indian company specializing in food products, if you will, high-quality ready-to-eat. And in the same way, Apax Digital II announced the exit of one of their portfolio companies. So looking at the portfolio, as I say each time, it's the value of our company. It's the value of its portfolio. On December 31, we have EUR 1.5 billion portfolio value in 67 companies, including 8% of this overall amount in funds, and we will take a quick look at the funds later with the majority being split between the Apax Funds and the Seven2 funds and 17% in co-investments. So the portfolio, as you see on Page 32, is still well diversified by sector with nearly half in Tech, 30% in Services, 14% in Consumer and 5% in Healthcare. We see that the share of older portfolio companies currently represents more than 35% of the portfolio, meaning there is potential for selling off companies. Finally, the breakdown of Europe, United States and the rest of the world is based on headquarters and doesn't reflect the real economic situation. Because if I take Marlink, which is registered with its headquarters in France, the majority of its business operations are actually global. So the portfolio is well diversified by sector, geographically and by age. As for growth, given that Altamir's core mission, which is to achieve growth exceeding that of the one of publicly listed companies. You see that compared to CAC 40 industrials despite a mediocre 2025, we outperformed with 9% EBITDA growth over the EBITDA growth of the CAC 40 companies. Next, we provided the breakdown of the portfolio by sales growth rate. And you see that 22 companies representing 55% of the portfolio have a growth that is higher than 0%, meaning positive growth. However, 45% of them show negative growth in terms of turnover. On the other hand, if we turn the page when looking at EBITDA growth, 24 companies also have positive EBITDA growth, but I would say that all even those with negative EBITDA growth are many due to the dollar effect comparing to the euro, the currency effect are all, of course, positive in EBITDA. So without delay, as we usually do, we will review the 20 main and bigger companies in the portfolio, which represents 66% of the capital of the portfolio. So regarding Tech & Telco, Dstny is showing and is undergoing a phase of repositioning its business model, particularly through the integration of artificial intelligence as the majority of its operations have now become, in my view, very competitive. And so it is very important that the company regains a competitive advantage. Graitec continues to perform extremely well, both in terms of organic growth and external growth with significant development in the United States. Regarding the company, Odin, it has shown a remarkable performance. Odin, which previously operated only in a small region of Holland now covers the entirety of Holland and has started expanding into 4 nearby countries with 4 acquisitions last year, 2 acquisitions have already been made in 2026. And currently, the company is genuinely experiencing a period of very robust growth. Odigo, as you know, had a very long process as it needed to move from a transitional phase to finally implement a unified Software-as-a- Service system. This was done 2 years ago, and it shows up as very significant EBITDA growth, while revenue growth is on the other side still lagging. Odigo has established a complete strategy that relies on artificial intelligence. And today, 600,000 phone calls are made, thanks to AI. This is one of the companies poised to benefit significantly from artificial intelligence in the coming years and should find a growth and positive trajectory again. Hirsch is the new name since you know that Vitaprotech made the transformative acquisition of Hirsch in the United States, and it took the opportunity to rename itself Hirsch globally. The company has, therefore, completely reorganized its own structure post acquisition. It had approximately 10 companies that have been integrated into one single platform, meaning the company is currently in a phase of deep transformation and external growth, continuing their other external acquisitions. InfoVista, which underperformed for years, is recovering strongly with 11% revenue growth, 16% EBITDA growth and all this in a very difficult telecom infrastructure world during the last year. Nevertheless, InfoVista's #1 problem is its extremely large debt load and the performance that will be anticipated from our investment will hinge upon the manner in which we manage to diminish this outstanding debt. ThoughtWorks, as you know, is a very large investment by the Apax IX funds in which instance, we had achieved about 4x our realized stake. The Apax XI fund reinvested, exited the company from the stock exchange and the year 2025 was a key transformation year. And in particular, the company is currently establishing itself as a leading entity in the domain of implementing artificial intelligence within software projects since the company develops proprietary software for clients and thus positions itself as the champion of implementing AI and the deployment of its software, and we expect a very significant recovery from all the measures taken in 2025 of EBITDA in 2026 since for the year 2025, it was stable. Expereo continues to struggle. You know that when we invested in Expereo, we made a strategic decision to go direct to customers and no longer depend on phone operators. For a few years, this direct sales movement did not affect indirect sales through the telephone operators. But over the last 2 years, the operators have become aware of the issue leading on one side to the growth. The 7% revenue drop is explained partly by strong direct business growth, as we indicate of 6%. On the other hand, it is offset by a drop in indirect business. But as always, as the weight of direct business starts to becomes more significant, the gamble will ultimately materialize into success in the coming years. Here, again, a shift in leadership thus, foundational work is underway, which results in the situation in 2025. We observed that the revenues and EBITDA are stable comparing to last year. But it is on the 2026 fiscal year that we will start to see the benefits of this management team change. As for Lumion, the company continues its development. It has completed a major acquisition, and the company is simultaneously undergoing a process of integrating AI into all its software and in all its areas. If we now move to the Services sector. Opteven, as you are aware, regarding our last presentations, is a firm that provides in the European lines, services for automobile insurance products in case of car breakdown or car accident. Thus, the company expands initially via acquisitions and establishes itself across all geographical regions. It is studying acquisitions in all adjacent European geographies. Its growth continues to be very significant, both in revenue and in EBITDA, but the company has embarked on an extremely ambitious program of implementing artificial intelligence. To illustrate with an example, the firm processes 1 million claims each year. And so this million claims consists of registering claims, having vehicles repaired by garages, checking garage invoices, ensuring that the invoices are correct and there is no fraud, et cetera, solely concerning the recent financial period commencing in 2026 and the implementation of AI should generate EUR 5 million in savings in EBITDA and applied across France and the entire group, they should generate EUR 10 million in savings. Here, we have a concrete example of applying AI to, I would say, optimize operational management. AEB continues to suffer from the decline in wine production, particularly in Argentina, et cetera. A new management team is in place, which aims to recover EBITDA, which dropped by 41% this year and is taking very significant measures to turn the company around. Veriforce, which I remind you is the merger of 2 companies, Alcumus and Veriforce, which combine an activity in Europe and an activity in the United States. Therefore, Veriforce is fundamentally a global benchmark in training for integrated solutions and dedicated services for supply chain management. So the company continues to develop remarkably with 13% turnover and 19% EBITDA growth. Infraneo, we discussed Nova24 earlier. Infraneo operates in the domain of maintaining the -- how should I put it, infrastructures. And the company, which was essentially a French company, has become since the support by Seven2, a pan-European company with acquisitions made in all adjacent countries. And so this translates into a 13% growth in its turnover. Fulgard is therefore a recent acquisition by Seven2, which is an actor. How should I say, it a significant player in the field of fire safety and also occupational health risks. The company is currently focused firstly, on enhancing its economic performance and on the other hand, starting an external growth process in order to solidify the Italian fire safety market, which is extremely fragmented. So HRK Lunis is a platform we previously examined, specifically a wealth management platform. So the company experienced significant growth in its turnover and its EBITDA for the 2025 fiscal year. And therefore, you can imagine we are working with it to apply somewhat the same strategy as the one applied to Crystal in Germany. Oncourse Home Solutions, as you see, is one of the primary guaranteed providers for public utility networks across the United States. The company is experiencing very strong growth, both organic and by external growth, which is reflected in the figures presented, 11% and 14%, respectively. And she has just finalized a complete refinancing that enabled us to receive over the month of February, a distribution of EUR 6 million, Eric, if I recall. So that's it. Crystal, as you know, was sold to Goldman Sachs. Thus, the Apax Fund X-VII-II reinvested alongside Goldman Sachs. Likewise, we, through the Seven2 Duality fund also reinvested alongside Crystal and the revenue decline for the 2025 fiscal year is mainly explained by the difficulty in integrating Primonial. Since at the moment we divested the company to Goldman Sachs, 2 big acquisitions had been made and weren't integrated yet. Furthermore, the company had more difficulty selling structured products, which accounts for this slight decrease in sales figures. And lastly, we kept THOM in for good measure. So THOM, despite a phenomenal gold price increase of 65% between March 2025 and March 2026 at the moment I am speaking, which is extremely significant, kept its result at December 31, 2025, up 6% with only a 3% decrease in its gold flow. This was because the company hedged strongly against the rising gold price of gold, but the company faces a big challenge repositioning its offer, both its product range and its pricing structure to account for the increase in gold. And that is a challenge we encountered about a decade ago. And back then, we resolved the issue by moving from 18 carat to 9 carats, which gave us 10 years of extremely strong growth. And so the group is working in an extremely positive manner to find solutions to deal with this increase in the price of gold. And furthermore, I must say that all the diversifications we have made, especially those of Agatha and in the field of fashion, jewelry are advancing extremely favorably. So another year, probably a year, a fiscal year 2025, 2026. Since the autumn fiscal year runs from October 1 to September 30, a fiscal year 2025, 2026, which will certainly still be mixed pending the implementation of all the measures being taken. But I believe we should see in the future the good times return starting from September of next year. There you go. So that's regarding THOM. We still have Mental, of course, we can't forget it. Since Mental better, you know that the company had a very difficult start, facing challenges after COVID in recruiting psychotherapists with difficulty passing on higher salaries, et cetera. So the company valued at less than 50% of cost is now back above cost. And you can see that the company is experiencing positive growth, both organically and globally. The company has recovered under the governance of a new management team has completely turned the situation around. It has positioned itself to make acquisitions, the first one having been signed in June 2025. So a quite spectacular turnaround for this company. In summary, after what we said, indeed, we are recording a global decrease in the portfolio value of EUR 30 million, but EUR 31 million out of those EUR 30 million comes from, I'd say, the currency effect. And EUR 63 million come from the decrease of fair value in THOM and the increase in the price of gold. So I did some simple math, 31 plus 62 is 93, minus 30, that results in plus 62 if we imagine that these external events not occurred. All in all, that covers the portfolio. All of this results after 4 not really great years. Altamir underperforms its benchmark over 1, 3 and 5 years in total. However, we remain positive over 10 years. But I think our portfolio is of very high quality, and that in the coming years, we should regain ground. We continue paying a 2% to 3% dividend on net revalued assets. If the general meeting agrees, we won't pay the dividend in 2026 for 2025. We will see for 2027 and hope to resume the dividend when the time will arrive. For the total shareholder return, which includes both the dividends paid and the growth of the share price, you see the situation is totally different. We are significantly outperforming our indices over the last 10 years. This is largely due to the initiative I undertook to execute a liquidity operation by buying shares in September of this year, which allowed Altamir's stock price to maintain itself at a very high level since this event. If we take a step back since the creation of Altamir since the day is taken to take a step back today, since Altamir started in 1995, over 30 years, Altamir invested almost EUR 2.6 billion and sold half of that portfolio for EUR 1.3 billion and an unrealized portfolio of EUR 1.273 billion. Now we are talking about EUR 1.273 billion, that is the cost. So you can see that globally, we achieved a multiple of approximately 1.8x the stake and a theoretical return between 14.5% and 15%. So this is achieved after 4 years in a bad macroeconomic environment, which represents a relatively good performance. I set goals in 2021 for the next 5 years, and those 5 years are over. And the goals I mentioned were an average of EUR 170 million in new investments, EUR 230 million from sales and 7% average organic growth, and over the 5 years -- the 5-year average, we are at EUR 192 million against EUR 170 million. We are at EUR 251 million against EUR 230 million, and we are at 15.6% of the EBITDA while accounting for external growth. So overall, the objectives for the past 5 years have been met. So we had to set new goals for the coming years. Given the transition taking place, I propose we keep -- we postpone the objectives by 1 year, the average of the 2021 goals to 2026, so as to leave my coming successor full latitude to redefine the next objectives next year after he has taken awareness of the events. As I am speaking of my successor, I am happy to announce, I always said I was preparing my succession for a long time. But I'm pleased to announce Eddie Misrahi, to whom I know for 30 years, who worked with me at Apax, who became Seven2 for over 30 years to whom I passed the leadership of Apax in 2010 and who managed Apax until December 2025 as the head has joined us, and I have, therefore, asked him to take over from me leading Altamir Gerance effective May 1. That is to say after the General Assembly at this date. Anyway, we needed to know my mandate would expire due to my age limit was set to expire next year. So I moved this departure up by 1 year, and Eddie will be responsible for defining a new strategic plan for Altamir for the next 10 years. I think that first, as I indicated, he has the entire attitude to do it since past commitments are very limited and that conversely, I would like to perhaps provide a relatively but important straightforward summary of these 30 years. I remind you, I created Altamir in December 1995 with EUR 12 million initial capital. Between 1998 and 2008, we raised EUR 309 million making total raised capital EUR 321 million. We distributed EUR 388 million. So we distributed more than the capital raised and the net asset value revalued at December 31, 2025 is EUR 1.180 billion. So we created EUR 1.2 billion of value over these 30 years. I think we leave ED a portfolio of EUR 1.50 billion in 67 companies to which are added, which I think other companies. The main problems have been handled, I think. And so 67 quite high-performing companies. We also leave him diversification in the Altaroc Odyssey funds, and we can perhaps present them to you, in which we now have access to 18 leading managers on a worldwide scale. As I recall that Altamir achieved its performance by investing exclusively with the Apax Funds in London and Seven2 in France. And now we possess in our portfolio access to 18 of the best managers worldwide. And so in the strategic thinking, Eddie will have to do how do we leverage this advantage and this diversification with all the underlying funds and so forth. And in conclusion, as I said, he starts with a blank slate as we have very low commitments, and so he must make significant commitments in the future. So I thank you for your attention. I thank you for your confidence throughout these 30 years. And naturally, I am not disappearing because as you know, I remain the main shareholder of Altamir. So if as a director, I will no longer be running [Audio Gap].