Altamir - Registration Document 2016

1

FINANCIAL AND LEGAL INFORMATION Presentation and history of the Company

www.marlink.com

1) Business description Marlink is one of the world’s leading providers of satellite communication services. The company serves the world’s maritime sectors, in addition to thousands of users in themining, energy and humanitarian sectors who operate in challenging environments and are in need of highly reliablemobile and fixed connectivity services. Operating in 14 countries across Europe, Asia, the Middle East and the Americas, it has a distribution network of approximately 400 re-sellers worldwide. 2) Why did we invest? Marlink is a world leader in commercial satellite communication services. It encompasses the commercial division of Vizada, a former portfolio company of Apax/Altamir sold toAirbus Group in 2011. The company mainly operates in the maritime business sector, where it is a global leader, but it also offers terrestrial solutions. Revenue expansion is expected though increasing exposure to the fast-growing and attractive maritime Ka- and Ku-band VSAT market. Marlink is well positioned to capture market growth through (i) an exhaustive product portfolio, (ii) a global distribution network, and (iii) a large and diversified customer base. 3) How do we intend to create value? Our investment thesis is based on several drivers of value creation: (i) accelerating VSAT delivery; (ii) developing value- added services beyond connectivity to increaseARPU (Average Revenue Per User) and customer retention; (iii) focusing on Land core verticals (onshore Oil & Gas, Mining, Media and Humanitarian); (iv) driving profitability through operational efficiencies and the outsourcing of installation andmaintenance activities; and (v) consolidating a highly fragmented industry.

4) What has been achieved? Since investment, Marlinkhas activelypursued itsVSATmigration strategy to reach a total installedbase of 2,536 vessels (vs. 2,032 at the end of 2015). Six months after it was acquired, Marlink acquired the Italian company Telemar, creating theworld’s leading communications, digital solutions and servicing group in themaritime sector. The new group employs 800 people and serves more than one in three vessels operating globally. 5) How is it performing? In 2016, Marlink continued to demonstrate solid growth in the maritime VSAT sector, with an increasing customer base. The company signed a new contract with Inmarsat on both the existing MSS and the upcoming GX technologies. The company’s Enterprisedivision completed its turnaroundand generated positive EBITDA. Marlink has also renewed important contracts in the land business and secured a few new ones. In 2016, Marlink reported $350m of core revenue (flat vs. 2015) and a 16% rise inEBITDA. These increases reflected the expected decline inMSS services, offset by a fast take-upof VSAT services. A shift in product mix towards VSAT technology enabled the company to substantially boost its EBITDA performance. Including Telemar on a pro-forma basis, the company posted revenue of €453m and a 29% growth in EBITDA. The valuation of the investment in Marlink grew by €46.8m during the financial year 2016. 6) How will we crystallise value? In the context of ongoingmarket consolidation, Marlink couldbe a good candidate for a strategic buyer seeking to reinforce its presence in themaritime sector. Marlink could also be of interest to a financial investor.

Sector

Country

Date of investment

Residual cost in €m

Fair value in €m 105.8

% of the portfolio at fair value

France

2016

59.1

12.1

24 REGISTRATION DOCUMENT 1 ALTAMIR 2016

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