Altamir - Registration Document 2016

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1 FINANCIAL AND LEGAL INFORMATION
Presentation and history of the Company
Sector Country Date
of investment
Residual cost
in €m
Fair value
in €m
% of the portfolio
at fair value
France 2005 59.0 60.8 7.0
1) Business description
Albioma, formerlySéchilienne-Sidec, is apublicly listedcompany
(Euronext Paris). Altamir holds 12% of the company’s shares,
both directly and through Financière Hélios.
Albioma is a leading independent energy producer with a
strong focus on renewable energy. The company has world-
class expertise in biomass and significant operations in solar
energy. The total installed capacity of its plants is 753 MW. In
2014, leveraging its presence in France, its overseas territories
andMauritius, the companybeganoperating inBrazil, theworld’s
leading sugar cane producer.
2) Why did we invest?
The company pioneered the biomass energymarket in themid-
1990s with the introduction of mixed fuel-fired power plants
(coal and bagasse, a residue of sugar cane) and has since
demonstrated the clear cost advantage of this technology
compared to other energy sources available on remote islands.
Owing to its solid industrial base, the company has developed a
particularly attractive businessmodel characterisedby (i) 25- to
35-year contractswith incumbent national electricity producers
on a cost-plus basis, and (ii) a high ROE due to the energy
efficiency of its plants and availability of project financing.
3) How do we intend to create value?
Renewable energy (solar, cogeneration and biomass) has
significant growthpotential. Demand isgrowing in thecompany’s
historical territories and there is opportunity to expand to new
territories.
4) What has been achieved?
Since investment, governance has been strengthened at the
management level (CEO, CFO, legal director, HR director and
two finance controllers recruited) and on the Board of Directors
(new independent directors). Jacques Petry, former CEOof SITA
and Suez Environment, was appointed CEO in 2011.
Albioma started its international expansion by entering Brazil,
the world’s largest sugar cane and bagasse production market.
In 2014, the company acquired the 60MW Rio Pardo bagasse
cogeneration plant in the state of São Paulo, and in 2015, it
acquired a 65% stake in the 48MW Codora Energia bagasse
cogeneration plant in the state of Goias.
In France, Albioma signed two new contracts with EDF at
the end of 2014 and in early 2015: Galion 2 in Martinique, the
largest 100% biomass plant in the French overseas territory
(40 MW, operational in 2017), and Saint-Pierre de la Réunion,
the first French peak production plant operating essentially on
bioethanol derived from the distillation of sugar cane molasses
(40 MW, operational in 2017).
5) How is it performing?
Albioma reported a sharp increase in 2016 earnings. EBITDA
rose by 10% to €131.4m and sales by 5% to €367.8m, owing to
strong performance at its thermal plants, rate increases agreed
with EDF in Reunion island, improved profitability at its two
Brazilian plants, and the full-year contribution of the Codora
plant, acquired in 2015.
The company has also announced a third Brazilian project:
the signing of a joint-venture agreement with Vale do Paraná,
a mill in the state of São Paulo with the capacity to crush 2
million metric tonnes of sugar cane, with the aim of operating
its cogeneration plant and building an extension, increasing the
generating capacity from 16MW to 48MW, 30MW of which will
be exported to the power grid from 2021.
Taking intoaccount the increase in its shareprice, the valuationof
the investment inAlbioma gained€8mduring the 2016 financial
year.
6) How will we crystallise value?
Because of the strong resilience of its business model and the
quality of its management team, Albioma should attract the
interest of both trade and financial buyers.
28 REGISTRATION DOCUMENT 1 ALTAMIR 2016