EMEA Private Equity Market Snapshot

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│

Fig.1: GDP - Annual growth rate ( %)

Sweden Norway Denmark Finland

0 2013 2014 2015 2016 2017 2018 F 2019 F -1

-2 Fig.2: Total PE/VC Investments into Nordics 14 350

12 300

)

Bn 10 250 € 8 200 6 150

4 100 Count Deal

Deal value ( value Deal 2 50 0 0 2013 2014 2015 2016 2017 Buyout (€ Bn) Venture Capital (€ Bn) Buyout # Venture Capital # Fig.3: Global M&A Activity in the Consumer Sector

PE-sponsored M&As Venture Capital M&As Strategic M&As

600,000

500,000

400,000

300,000

200,000

100,000

0 2013 2014 2015 2016 2017

Fig.4: Implied EV/EBITDA, Corporate & PE-backed M&A deals

Implied EV/EBITDA, Corporate Implied EV/EBITDA, PE-backed

0 2013 2014 2015 2016 2017

Fig.5: PE Activity in the Consumer Sector 120,000 3,000

100,000 2,500

80,000 2,000

60,000 1,500

40,000 1,000

Deal Counts Deal Total Capital Total

20,000 500

0 0 2013 2014 2015 2016 2017 Total PE Capital Inflows Total PE Deal Counts

Fig.7: In the next 12 months I expect that, in my location, my firm will focus on… 100

Percentage (%) Percentage 20

0 Making new Managing existing Raising new funds Realisations investments portfolio

Fig.8: Industries of Interest for Private Equity Firms

Current 2018 Focus

Percentage (%) Percentage 10

0 Information Technology Energy Fig.9: If you are aiming to complete a fund raising in the next 12 months, please indicate the target amount in USD

over $1 billion

$500m - $1 billion

$300-$500 million

$50-$300 million under $50 million

0 20 40 60 Percentage (%) Fig.10: What exit strategies are you considering for any planned exits in the next 12 months

Trade sale

Secondary

MBO

IMO

0 20 40 60 80 Fig.11: PE-backed exit transactions globally Percentage (%) 500 3,000

400 2,500 2,000 300 1,500 200 1,000

100 500

0 0 2010 2011 2012 2013 2014 2015 2016 2017 Aggregate Deal Value ($bn) # of Deals

Data Pack

EMEA – Based Targets

Number of Private Equity Entry Transactions by Region Number of Private Equity Exit Transactions by Region Q4 2016 vs. Q4 2017 Q4 2016 vs. Q4 2017

300 Africa 120 Africa

250 BeNeLux 100 BeNeLux France France 200 80 Germany Germany

150 Middle East 60 Middle East

Nordics Nordics 100 40 RoE RoE 50 20 Southern Europe Southern Europe

0 United Kingdom 0 United Kingdom Q4 2016 Q4 2017 Q4 2016 Q4 2017

Aggregate Private Equity Entry Transaction Values by Aggregate Private Equity Exit Transaction Values by Region Region (€bn) (€bn) Q4 2016 vs. Q4 2017 Q4 2016 vs. Q4 2017 1

18 Africa 30 Africa 16 BeNeLux 25 BeNeLux 14 France France 12 20 Germany Germany 10 Middle East 15 Middle East 8 6 Nordics 10 Nordics 4 RoE RoE 5 2 Southern Europe Southern Europe 0 United Kingdom 0 United Kingdom Q4 2016 Q4 2017 Q4 2016 Q4 2017

For illustrative purposes only. Source: S&P Global Market Intelligence. As of December 31, 2017. 17 Data Pack

EMEA – Based Targets (continued)

Average Entry Transaction Size by Region (€mn) Average Exit Transaction Size by Region (€mn) Q4 2016 vs. Q4 2017 Q4 2016 vs. Q4 2017 1

120 Africa Africa 1800 BeNeLux BeNeLux 100 1600 France 1400 France 80 Germany 1200 Germany

60 Middle East 1000 Middle East

Nordics 800 Nordics 40 600 RoE RoE 20 400 Southern Europe 200 Southern Europe 0 United Kingdom 0 United Kingdom Q4 2016 Q4 2017 Q4 2016 Q4 2017

Number of Private Equity Entry Transactions by Industry Number of Private Equity Exit Transactions by Industry Q4 2016 vs. Q4 2017 Q4 2016 vs. Q4 2017 500 90 Consumer Discretionary Consumer Discretionary 450 Consumer Staples 80 Consumer Staples 400 Energy 70 Energy 350 Financials 60 Financials 300 Healthcare 50 Healthcare 250 Industrials 40 Industrials 200 Information Technology Information Technology 150 30 Materials Materials 100 20 Real Estate Real Estate 50 Telecommunication Services 10 Telecommunication Services 0 Utilities 0 Utilities Q4 2016 Q4 2017 Q4 2016 Q4 2017

For illustrative purposes only. Source: S&P Global Market Intelligence. As of December 31, 2017. 18 Data Pack

EMEA – Based Targets (continued)

Aggregate Private Equity Entry Transaction Values by Aggregate Private Equity Exit Transaction Values by Industry (€bn) Industry (€bn) Q4 2016 vs. Q4 2017 Q4 2016 vs. Q4 August 2017 1 18 25 Consumer Discretionary Consumer Discretionary

16 Consumer Staples Consumer Staples 20 14 Energy Energy

12 Financials Financials 15 10 Healthcare Healthcare 8 Industrials Industrials 10 6 Information Technology Information Technology Materials Materials 4 5 Real Estate 2 Real Estate Telecommunication Services 0 0 Telecommunication Services Utilities Q4 2016 Q4 2017 Q4 2016 Q4 2017 Utilities

Average Entry Transaction Size by Industry Average Exit Transaction Size by Industry (€mn) (€mn) Q4 2016 vs. Q4 2017 Q4 2016 vs. Q4 2017 2

Consumer Discretionary 1000 1200 Consumer Discretionary Consumer Staples 1000 Consumer Staples 800 Energy Energy Financials 800 Financials 600 Healthcare Healthcare 600 Industrials Industrials 400 Information Technology 400 Information Technology Materials Materials 200 Real Estate 200 Real Estate Telecommunication Services 0 0 Telecommunication Services Q4 2016 Q4 2017 Utilities Q4 2016 Q4 2017 Utilities

1. The exit transaction aggregates and averages have been calculated after removing the following deals to avoid overestimating the trend on the back of a single deal: Anheuser-Busch InBev SA/NV (ENXTBR:ABI) completed the acquisition of SABMiller plc (LSE:SAB) from Altria Group Inc. (NYSE:MO), Kulczyk Investments S.A., Allan Gray Limited, Vontobel Asset Management AG, Santo Domingo Group and other shareholders for 103.3bn EUR. 2. John Wood Group plc (LSE:WG) acquired Amec Foster Wheeler plc (LSE:AMFW) from Artisan Partners Limited Partnership for 4.2bn EUR For illustrative purposes only. Source: S&P Global Market Intelligence. As of December 31, 2017. 19 Data Pack

EMEA – Based GPs

Number of Private Equity Entry Transactions by Region Number of Private Equity Exit Transactions by Region Q4 2016 vs. Q4 2017 Q4 2016 vs. Q4 2017

250 Africa 90 Africa Asia 80 Asia 200 BeNeLux 70 BeNeLux France France 60 150 Germany Germany Indian Sub-Continent 50 Indian Sub-Continent Latin America 40 Latin America 100 Middle East Middle East 30 Nordics Nordics 50 North America 20 North America RoE 10 RoE Southern Europe Southern Europe 0 0 United Kingdom United Kingdom Q4 2016 Q4 2017 Q4 2016 Q4 2017

Aggregate Private Equity Entry Transaction Values by Aggregate Private Equity Exit Transaction Values by Region Region (€bn) (€bn) Q4 2016 vs. Q4 2017 Q4 2016 vs. Q4 2017 1 12 18 Africa Africa Asia 16 Asia 10 BeNeLux 14 BeNeLux France 8 France 12 Germany Germany 10 Indian Sub-Continent 6 Indian Sub-Continent Latin America 8 Latin America Middle East 4 Middle East 6 Nordics Nordics 4 North America 2 North America RoE 2 RoE Southern Europe 0 Southern Europe 0 United Kingdom United Kingdom Q4 2016 Q4 2017 Q4 2016 Q4 2017

For illustrative purposes only. Source: S&P Global Market Intelligence. As of December 31, 2017. 20 Data Pack

EMEA – Based GPs (continued)

Average Entry Transaction Size by Region Average Exit Transaction Size by Region (€mn) (€mn) Q4 2016 vs. Q4 2017 Q4 2016 vs. Q4 2017 1 900 Africa 1800 Africa 800 Asia 1600 Asia BeNeLux BeNeLux 700 France 1400 France 600 Germany 1200 Germany 500 Indian Sub-Continent 1000 Indian Sub-Continent 400 Latin America 800 Latin America Middle East Middle East 300 600 Nordics Nordics 200 North America 400 North America 100 RoE 200 RoE 0 Southern Europe 0 Southern Europe United Kingdom Q4 2016 Q4 2017 United Kingdom Q4 2016 Q4 2017

Number of Private Equity Entry Transactions by Industry Number of Private Equity Exit Transactions by Industry Q4 2016 vs. Q4 2017 Q4 2016 vs. Q4 2017 600 100 Consumer Discretionary 90 Consumer Discretionary 500 Consumer Staples 80 Consumer Staples Energy 70 Energy 400 Financials Financials 60 Healthcare Healthcare 300 50 Industrials Industrials 40 200 Information Technology Information Technology Materials 30 Materials 20 100 Real Estate Real Estate Telecommunication Services 10 Telecommunication Services

0 Utilities 0 Utilities Q4 2016 Q4 2017 Q4 2016 Q4 2017

For illustrative purposes only. Source: S&P Global Market Intelligence. As of December 31, 2017. 21 Data Pack

EMEA – Based GPs (continued)

Aggregate Private Equity Entry Transaction Values by Aggregate Private Equity Exit Transaction Values by Industry (€bn) Industry (€bn) Q4 2016 vs. Q4 2017 Q4 2016 vs. Q4 2017 1

14 Consumer Discretionary 14 Consumer Discretionary Consumer Staples 12 12 Consumer Staples Energy Energy 10 Financials 10 Financials Healthcare 8 8 Healthcare Industrials 6 6 Industrials Information Technology Information Technology

4 Materials 4 Materials 2 Real Estate 2 Real Estate Telecommunication Services Telecommunication Services 0 0 Utilities Utilities Q4 2016 Q4 2017 Q4 2016 Q4 2017

Average Entry Transaction Size by Industry Average Exit Transaction Size by Industry (€mn) (€mn) Q4 2016 vs. Q4 2017 Q4 2016 vs. Q4 2017 1 500 1000 Consumer Discretionary Consumer Discretionary

Consumer Staples Consumer Staples 400 800 Energy Energy

Financials Financials 300 600 Healthcare Healthcare

Industrials Industrials 200 400 Information Technology Information Technology

Materials Materials 100 200 Real Estate Real Estate

Telecommunication Services Telecommunication Services 0 0 Utilities Utilities Q4 2016 Q4 2017 Q4 2016 Q4 2017

For illustrative purposes only. Source: S&P Global Market Intelligence. As of December 31, 2017. 22 Data Pack

VC EMEA – Based GPs

Number of Venture Capital Entry Transactions by Region Number of Venture Capital Entry Transactions by Industry Q4 2016 vs. Q4 2017 Q4 2016 vs. Q4 2017 120 400 Africa Consumer Discretionary Asia 350 Consumer Staples 100 BeNeLux Energy France 300 80 Financials Germany 250 Indian Sub-Continent Healthcare 60 200 Latin America Industrials Middle East 150 40 Information Technology Nordics 100 Materials North America 20 Real Estate RoE 50 Telecommunication Services Southern Europe 0 0 United Kingdom Utilities Q4 2016 Q4 2017 Q4 2016 Q4 2017

Aggregate Venture Capital Entry Transaction Values by Aggregate Venture Capital Entry Transaction Values by Region (€mn) Industry (€mn) Q4 2016 vs. Q4 2017 Q4 2016 vs. Q4 2017 2500 1800 Africa Consumer Discretionary

Asia 1600 Consumer Staples 2000 BeNeLux 1400 Energy France 1200 Financials 1500 Germany Indian Sub-Continent 1000 Healthcare Latin America 800 Industrials 1000 Middle East 600 Information Technology Nordics Materials 500 North America 400 Real Estate RoE 200 Telecommunication Services 0 Southern Europe 0 United Kingdom Utilities Q4 2016 Q4 2017 Q4 2016 Q4 2017

For illustrative purposes only. Source: S&P Global Market Intelligence. As of December 31, 2017. 23 Data Pack

VC EMEA – Based GPs (continued)

Average Entry Transaction Size by Region Average Entry Transaction Size by Industry (€mn) (€mn) Q4 2016 vs. Q4 2017 Q4 2016 vs. Q4 2017 Africa Consumer Discretionary Asia Consumer Staples 140 BeNeLux 120 Energy 120 France 100 Financials 100 Germany Indian Sub-Continent 80 Healthcare 80 Latin America Industrials 60 60 Middle East Information Technology Nordics 40 Materials 40 North America Real Estate 20 RoE 20 Telecommunication Services Southern Europe 0 0 United Kingdom Utilities Q4 2016 Q4 2017 Q4 2016 Q4 2017

For illustrative purposes only. Source: S&P Global Market Intelligence. As of December 31, 2017. 24 Data Pack

VC EMEA – Based Targets

Number of Venture Capital Entry Transactions by Region Number of Venture Capital Entry Transactions by Industry Q4 2016 vs. Q4 2017 Q4 2016 vs. Q4 2017

140 Africa 350 Consumer Discretionary 120 BeNeLux 300 Consumer Staples Energy France 100 250 Financials Germany 80 200 Healthcare Middle East Industrials 60 150 Nordics Information Technology Materials 40 RoE 100 Real Estate 20 Southern Europe 50 Telecommunication Services 0 United Kingdom 0 Utilities Q4 2016 Q4 2017 Q4 2016 Q4 2017

Aggregate Venture Capital Entry Transaction Values by Aggregate Venture Capital Entry Transaction Values by Region (€mn) Industry (€mn) Q4 2016 vs. Q4 2017 Q4 2016 vs. Q4 2017 1200 1200 Africa Consumer Discretionary Consumer Staples 1000 BeNeLux 1000 Energy France 800 800 Financials Germany Healthcare 600 600 Middle East Industrials 400 Nordics 400 Information Technology RoE Materials

200 Southern Europe 200 Real Estate Telecommunication Services 0 United Kingdom 0 Utilities Q4 2016 Q4 2017 Q4 2016 Q4 2017

For illustrative purposes only. Source: S&P Global Market Intelligence. As of December 31, 2017. 25 Data Pack

VC EMEA – Based Targets (continued)

Average Entry Transaction Size by Region Average Entry Transaction Size by Industry (€mn) (€mn) Q4 2016 vs. Q4 2017 Q4 2016 vs. Q4 2017

12 Africa 35 Consumer Discretionary Consumer Staples BeNeLux 30 10 Energy France 25 8 Financials Germany 20 Healthcare 6 Middle East Industrials 15 Information Technology 4 Nordics RoE 10 Materials 2 Real Estate Southern Europe 5 Telecommunication Services 0 United Kingdom 0 Utilities Q4 2016 Q4 2017 Q4 2016 Q4 2017

For illustrative purposes only. Source: S&P Global Market Intelligence. As of December 31, 2017. 26 EMEA Private Equity Market Snapshot

Multiples Table Implied Enterprise EMEA Private Equity Exits M&A Value/EBITDA 01/10/2016 - 31/12/2017 01/10/2016 - 31/12/2017 Consumer Discretionary 11.4 10.5 Consumer Staples 11.1 10.3 Energy 10.4 6.4 Financials 20.2 8.3 Healthcare 15.5 13.4 Industrials 10.5 9.6 Information Technology 14.2 12.5 Materials 8.7 8.5 Telecommunication Services 11.2 8.6 Utilities 10.0 12.2 Real Estate 28.0 20.8

Implied Equity Value/LTM EMEA Private Equity Exits M&A Net Income 01/10/2016 - 31/12/2017 01/10/2016 - 31/12/2017 Consumer Discretionary 13.7 17.0 Consumer Staples 18.2 14.9 Energy 21.3 11.0 Financials 16.4 14.2 Healthcare 35.0 22.3 Industrials 19.2 16.3 Information Technology 20.0 20.9 Materials 14.9 14.7 Telecommunication Services 21.6 22.0 Utilities 16.8 18.8 Real Estate 13.4 14.3

*Multiples highlighted in bold & italics represent the sector average over a 2 year time horizon in order to provide a more comprehensive sector average.

For illustrative purposes only. Source: S&P Global Market Intelligence. As of December 31, 2017. 27 EMEA Private Equity Market Snapshot

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For illustrative purposes only. Source: S&P Global Market Intelligence. As of December 31, 2017. 28 EMEA Private Equity Market Snapshot

Previous Issues Issue 1, March 2014 Issue 9, April 2016 • EMEA-Based Private Equity Market Settles into a New Normal Post-Financial Crisis • 2016: Slow Start for EMEA Entries but Exits Skyrocketing • Information Technology Remains Attractive for PE and VC Firms • France: La Belle Vie for Private Equity • Spanner in the Works for Industrials Issue 2, June 2014 • Will Private Equity Push through High-Yield Bond Market Volatility? • Healthy Start to 2014 for EMEA GPs, Despite April Hiccup • Healthcare: Resilient or Overheating? We examine PE activity pre and post-financial Issue 10, July 2016 crisis • Is Investment into EMEA Running Out of Steam? Issue 3, September 2014 • Sweden: Still ahead in the Nordic Private Equity Market? • IT in EMEA Losing Ground to the U.S. and Asia • Pressure from Strategic Buyers Slowing EMEA GPs’ Pace of Investment in Q2 • Asia Capital Sun Rising over Europe: Asian PE investors show growing interest in EMEA- • Private Equity Sponsors Tap Powerful Direct-Lenders in Bid to Raise Larger Unitranches based targets Issue 11, October 2016 Issue 4, January 2015 • EMEA Emerging Markets Flourish Despite Brexit Jitters • 2014: EMEA Still Attractive to Global Private Equity • Specialist Mid-Market GPs Face Stiff Competition • IT & Finance heat up • EMEA Consumer Products Losing Ground to US Targets • Germany: Has the Mittelstand lost its quintessentially strong profile? • UK Large Caps, UK Mid-Caps: Spot Any Difference?

Issue 5, April 2015 Issue 12, February 2017 • UK North-South Divide: Who is Benefitting from UK Private Equity Investments? • EMEA Fails to Attract Global Private Equity Capital in 2016 • Fall of Oil & Gas Prices: Potential PE Dealmaking Territory • Russia, Czech Republic and Poland lead the way for CEE • Private Equity: What’s the Deal with Tax Havens? • Real Estate and Private Equity: An Affair to Remember • Asia-Pacific Investors favour North America over Europe Issue 6, July 2015 • European Leveraged Lending: How are PE Firms Taking Advantage of Conditions in the Issue 13, April 2017 European Leveraged Finance Market? • 2017: EMEA Blossoms in the Spring • Consumer Confidence Conundrum – EMEA PE Skeptical about Consumer Confidence • France Affected by Counterfactual Thinking? Outlook? • Global GPs Cautiously Optimistic Towards the Energy Sector • Middle East Sovereign Wealth Funds – Perfect Partners for Mega-Deals • Borrowers Hold the Upper Hand in Flooded Leveraged Loan Market

Issue 7, September 2015 Issue 14, July 2017 • Investment into EMEA Wanes as Regional Issues Accumulate • All Eyes on UK PE Targets • Private Equity Shifts Focus Towards Internet Retailers • Sector Selection Critical to Success in Germany and Switzerland • Private Equity Exits: Secondaries and IPOs – Buffers and Bull Markets • Healthcare Sector Diagnosis: Chronic Arrhythmia • Private Equity Firms: Throwing Gas (and Oil) On A Potential Fire? Issue 8, February 2016 • EMEA Becomes Increasingly Attractive to Global GPs Issue 15, October 2017 • EMEA Healthcare Checkup • Lack of Brexit Clarity Fails to Stump UK Deals • The Rise of Cyber Power in Germany • Secondary Directs – A New Rite of Passage for PE Holdings? • Have Buyout Holding Periods Reached their Peak? • China: Global GPs Look East to Capture IT Opportunities • Changing Tastes: Institutional Investors Satisfy Growing PE Appetite For illustrative purposes only. Source: S&P Global Market Intelligence. As of December 31, 2017. 29 EMEA Private Equity Market Snapshot

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