LONG-TERM CAPITAL AND DEVELOPMENT SUPPORT IN ASIA AND EUROPE

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1 LONG-TERM CAPITAL AND DEVELOPMENT SUPPORT IN ASIA AND EUROPE 303, St. George s Building 2 Ice House Street Central, Hong Kong

2 A FAMILY-OFFICE FOUNDED BY THREE ENTREPRENEURS YAN AND GUY D AURIOL Prior to Leitmotiv, they were both executivedirectors of listed global supply chain manager Li & Fung, where they created and led their cosmetic division LF Beauty. They had founded CGroup in 1985 which they grew over 20 years to become the number one sourcing company globally servicing the cosmetic industry. Previously, Yan d Auriol established L Oreal in Hong Kong and supervised the group s first joint-venture in China. He remained as General Manager of L Oreal Hong Kong until Guy d Auriol had started his career in auditing, working for a French subsidiary of Deloitte. FRANCOIS TARDAN Prior to Leitmotiv, Francois Tardan was Executive Vice President and Chief Financial Officer of Bureau Veritas, the world s leading inspection, testing and verification company. From 1998 to 2011, Francois was notably in charge of leading the external growth strategy of the group, overseeing the acquisition and integration of 100+ companies. His management experience also includes the IPO of the group in Prior to Bureau Veritas, Francois was President and CEO of Fondasol, a leading European geotechnical engineering firm. Francois holds an MBA from HEC Paris and graduated from ENA. THE COMBINED EXPERIENCE OF THE FOUNDERS REPRESENTS OVER 90 YEARS OF SUCCESSFULLY CREATING AND MANAGING GLOBAL BUSINESSES FROM ASIA & EUROPE

3 AND SUPPORTED BY TWO PRIVATE EQUITY PROFESSIONALS EDWARD LEE Edward cumulates over 20 years of experience in private equity. Prior to joining Leitmotiv, Edward was an investment director with Citigroup Venture Capital International where he actively participated in numerous investments across Asia. His earlier career was with KPMG Hong Kong and Deloitte Singapore performing IT and financial audits. Edward is a CFA charterholder and a member of the Hong Kong Institute of Certified Public Accountants. Edward graduated from the National University of Singapore. ARNAUD TARDAN Arnaud cumulates over 10 years of experience in private equity. Prior to joining Leitmotiv, Arnaud was an investment professional in the Midcap buyout team of Ardian (ex-axa Private Equity), investing in European companies and actively supporting them in their global expansion, especially in Asia and in the US. Prior to Ardian, Arnaud was an associate at Montefiore Investment, a Paris-based LBO fund specialized in the retail and services industries. Arnaud graduated from EM Lyon Business School.

4 OUR INVESTMENT APPROACH WE PARTNER with visionary entrepreneurs who OUR INVESTMENTS TO DATE seek capital and human support to accelerate their international development and reinforce the robustness of their business model [exited in 2018] AsiaInspection Quality control, lab testing and certification Business Services WE INVEST in fast-growing companies with sales ranging from $10m to $70m Securities Robo-advisor and stock trading mobile apps Financial Services WE FOCUS on projects that can benefit from our expertise in : Internationalisation (Asia to Europe, Europe to Asia) 2014 Native Union Premium brand for tech accessories Consumer Brands External growth Supply chain optimisation 2015 Elan Wines & spirits distribution in emerging markets Food & Beverage Organisational improvement OUR SHAREHOLDING HORIZON is flexible and follows the specific needs of each investment project Agorastore Online auctions & remarketing services for assets resale Virtuos Content production services to the video game industry Business Services Business Services

5 BASED IN HONG-KONG, WE ACTIVELY SUPPORT BUSINESSES IN THEIR INTERNATIONALISATION EFFORTS 10 key operation centers Hong-Kong New Delhi Shenzhen, Chengdu, Hangzhou Durban Miami, Buffalo Cebu Mexico 2 key operation centers Hong-Kong Tokyo 3 key operation centers Hong-Kong Los Angeles Guangzhou 11 key operation centers Bordeaux Seoul Shanghai, Beijing, Chengdu, Guangzhou Astana, Almati St Petersburg, Moscow Taipei 1 key operation center Paris Exited investment Portfolio investments 7 key operation centers Singapore Paris Shanghai, Chengdu, Xian Dublin Ho Chi Minh

6 INVESTMENT KEY METRICS OWNERSHIP SIZE & GROWTH GEOGRAPHIC REACH AVERAGE EQUITY TICKET PER DEAL ~ 10m USD OWNERSHIP PROFILE 4 influential minority positions 2 majority positions AVERAGE SALES AT ENTRY PER COMPANY ~ 21m USD AVERAGE SALES IN 2017 PER COMPANY ~ 38m USD AVERAGED GROWTH IN % vs ASIA PACIFIC 32% OTHER 5% NORTH AMERICA 29% EUROPE 33% Note: Based on entry and 2017A figures from our investments on a weighted averaged basis

7 ASIA INSPECTION COMPANY DESCRIPTION Headquartered in Hong Kong, AI provides quality control, lab testing and compliance services to customers from more than 120 countries worldwide. SALES DEVELOPMENT BASE 100 The company s strong reputation in delivering quality and cost-effective solutions rests on its strong IT backbone (integrating online booking to report delivery), a team of over 2,000 experienced and reliable inspectors and strong operational support LEITMOTIV INVESTMENT Investment year : 2011 Operation type: owner buy-out Investment thesis : High barriers-to-entry Disruptive technology-enabled customer acquisition model Sustained accelerated organic growth Strong and stable management team with proven external growth capabilities Following 7 years of continuous support, LPE s stake was acquired by a leading Asian PE firm in Q SALES PER GEOGRAPHY LATIN AMERICA 19% ASIA PACIFIC 10% AFRICA & MIDDLE-EAST 9% EUROPE 28% NORTH AMERICA 36%

8 8 SECURITIES COMPANY DESCRIPTION Launched in 2012, 8 Securities is Asia s leading mobile-first investing service with licensed offices in Hong Kong and Tokyo. The company has a history of innovation, having launched Asia's very first robo-advisor and $0 commission stock trading apps. In March 2018, Nomura Asset Management (NAM) entered a strategic partnership with 8-Securities, via a $25m investment. Together they will leverage 8-Securities platform to deliver robo-advisory and mobile investing solutions to NAM s clients, as well as to other financial institutions. LEITMOTIV INVESTMENT Investment year : 2012 Operation : scale-up financing Investment thesis : Innovation through asset light technology First mover disruptive advantage in Asia Seasoned management team Hyper growth potential from customer acquisition funnel

9 NATIVE UNION COMPANY DESCRIPTION Native Union is an award-winning design brand bringing aspirational products to the booming mobile-accessories market. Based in Hong Kong and Los Angeles, Native Union is the only lifestyle brand successfully servicing all key retail channels including department stores, Apple retail and specialty retailers on and offline. LEITMOTIV INVESTMENT Investment year : 2014 SALES DEVELOPMENT BASE / / / / / /2019b Operation type: capital development Investment thesis : Unique lifestyle positioning in today s fastest growing consumer product category A management team putting brand values at the core of the business Opportunity to transform a large following into an engaged Native Union community SALES PER GEOGRAPHY ASIA PACIFIC 5% EUROPE 29% OTHER 6% NORTH AMERICA 62%

10 ELAN WINE & SPIRITS COMPANY DESCRIPTION SALES DEVELOPMENT BASE 100 Elan is a distributor of premium wine and spirits brands in emerging markets. Originally focused on the Russian and Kazakh markets, Elan progressively expanded its network in Asia. Elan is today an integrated network of fine wine and spirits distribution companies, with presence in five countries (Russia, Kazakhstan, China, South Korea, Taiwan), serving premium sales channels (on-trade and selected retail) LEITMOTIV INVESTMENT b Investment year : 2015 Operation type: corporate spin-off Investment thesis : Established positions in Russia and Kazakhstan Continuous roll-over potential in China Development of Korea and Taiwan Launch of in-house brands Experienced management team with proven record in geographical expansion SALES PER GEOGRAPHY SOUTH KOREA 7% RUSSIA 19% OTHER 4% CHINA 26% KAZAKH- STAN 44%

11 AGORASTORE COMPANY DESCRIPTION Agorastore is France s specialist of online auctions and remarketing services for second-hand assets. At its core sits Agorastore.fr, the online marketplace enabling French public institutions and large corporates to resell their equipment and real estate through organized auctions. Agorastore champions the circular economy model and focuses on traditional industries (public sector, transport, construction), answering their growing need for a modern, transparent and optimized sales channel for the resale of their assets. GROSS AUCTION PROCEEDS BASE b LEITMOTIV INVESTMENT Investment year : 2017 Operation type: management buy-out GROSS AUCTION PROCEEDS PER CATEGORY OTHER 6% Investment thesis : Leading position in France in the resale of heavy trucks Disruptive potential of the new channel offer in the real estate space Technology-enabled scalability Management team 2.0, focused on hyper-growth REMARKETED REAL ESTATE 42% INDUSTRIAL VEHICLES & EQUIPMENT 52%

12 VIRTUOS COMPANY DESCRIPTION SALES DEVELOPMENT BASE 100 Headquartered in Singapore, Virtuos is a leading provider of digital services to the video game and movie industries, employing 1,500 people across studios in China, Vietnam, France and Ireland. In the fragmented market of external development services, Virtuos is emerging as the largest specialist in 3D interactive content, offering AAA publishers a onestop-shop solution, from the manufacturing of 3D art assets to the co-development of games on a crossplatform basis. LEITMOTIV INVESTMENT Investment year : b SALES PER GEOGRAPHY Operation type: external growth financing Investment thesis : Attractive market fundamentals and growing needs for external development services Solid competitive advantages built through constant investments in HR training and technologies Robust foundations and management team to accelerate growth with external acquisitions ASIA PACIFIC 21% EUROPE 23% NORTH AMERICA 56%

13 OUR CEO PARTNERS ARE OUR BEST REFERENCES In Leitmotiv we have found an entrepreneurial partner who not only understands our business but also helps us accelerate our development, thanks to its experienced management team and its build-up expertise. Sébastien Breteau CEO & Founder of AsiaInspection With the support of Leitmotiv, we are reinforcing our product innovation capabilities, while reengineering our processes and improving our supply chain operations. Igor Duc & John Brunner Founders of Native Union

14 OUR CEO PARTNERS ARE OUR BEST REFERENCES The equity and operational support of Leitmotiv have enabled us to quickly seize a transformational acquisition in Japan, while accelerating our ongoing strategy of continued innovation and customer service improvement. Mathias Helleu & Mikaal Abdulla Founders of 8 Securities We are delighted to welcome Leitmotiv as our new majority shareholder. We will rely on their intimate knowledge of Asian markets to build overtime a leading position in China and its neighboring countries. Thomas Burgelin & Mathieu Bonneville Managing Directors of Elan

15 OUR CEO PARTNERS ARE OUR BEST REFERENCES With Leitmotiv as our reference partner, we set grounds for a new chapter of accelerated growth and continuous improvement of our value proposition. We are excited to work hand-in-hand with their team of experienced executives and leverage the best practices they helped implement in their previous ventures. David Riahi & Olivier Nataf Co-CEOs of Agorastore The entrepreneurs who founded LPE have dealt with what was needed to turn their business services companies into dominating global leaders at the service of their customers. We see their collective experiences as a very valuable pool of expertise Virtuos can tap into as it embarks in an exciting new phase of beefing up its global service offer. Gilles Langourieux CEO & Co-Founder of Virtuos