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Strategy

What are our Investment Criteria?

When deciding which business projects we want to support, we follow investment criteria which we have maintained since our foundation.

1

Tested business model with potential for growth.

We invest in companies which are leaders in their markets, with proven experience, sales of between 10 and 300 million euros and attractive growth opportunities (organic, international expansion or consolidation).

2

Companies with a solid management team

A professional management team, with a high level of commitment, is key for the success of our investments. We believe in attractive incentive schemes, offering the opportunity to participate in the capital of the companies in which we invest.

3

Size of investment

The capital contribution of Nazca ranges from 7 to 50 million euros, through majority or significant minority shareholdings, using prudent levels of debt in financing.

4

Generalist sector approach

We do not invest in sectors; we invest in attractive projects led by the best management teams.

5

Long-term investments

Our average investment period in businesses is from 3 to 6 years.

What types of operations do we carry out?

The majority of our investments have been made in family businesses, either by acquiring them and professionalizing their management teams or by sharing the project with the founding family. The most common scenarios are:

Purchase of shares to support management teams (MBO, MBI, BIMBO). Working with the management team, providing a strategic, operational and financial vision.

Capital Increases Capital Increases in growth projects, acquiring a majority or significant minority shareholding.

Capital para adquisiciones. We provide the strategic and financial resources which allow shareholders to acquire other businesses to generate synergies or strengthen their market positions.

Make majority and minority investments. We provide the business and/or family the appropriate solution for the project, regardless of the acquired percentage.

18

Number of Add-ons carried out

50

Percentage of investments in Add-ons

How do we create value?

Our strategy is based on the creation of value through:

Organic growth

We seek to develop all growth possibilities of our investees, accelerating the introduction of new products, entering new geographic markets, and launching new lines of business.

View case study

Acquisitions

We support our companies in the purchase of other companies to accelerate growth and consolidate their market position. 50% of our investees have grown through acquisitions.

View case study

Strategic definition

Including occasions with in-depth strategic refocusing to adapt the competitive positioning of our investees to changing market environments.

View case study

Improvements to organisation and operations

Making improvements to the organisation, processes and operations which support growth.

View case study

Strengthening of management teams

Maximising the capacity for attracting management talent to our investees with the introduction of professionalised management systems and attractive incentive schemes, aligned with the creation of value for the shareholder.

View case study

Responsible investment (ESG)

At Nazca we believe that a responsible investment contributes to the creation of value in the economy. For this reason, Nazca incorporates environmental, social and corporate governance considerations (ESG) into its value creation strategy during all stages of the investment process (including undertaking specific due diligences on ESG as part of the investment decision, in the management of investees, and finally, during divestment). Additionally, these ESG criteria form part of the day to day work of our organisation, and are integrated in Nazca’s relationship with its employees, investors, partners, clients and suppliers.

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What are our characteristics as investors?

Interaction with management teams.

Although we consider it essential for management teams to have a high level of autonomy, our investment philosophy is very personal and active, following the day to day operations of the company.

Dynamism and flexibility in complex processes.

We react quickly to investment opportunities, complete transactions with very tight deadlines and with full confidentiality. We are notable for our experience in structuring and completing complex operations, negotiating with a high number of shareholders and simultaneously executing several acquisitions.

Prudent levels of debt.

This allows our investees to invest in growth, face adverse economic environments with strength, and successfully execute the designed business plans.

Leadership in the divestment process

After a detailed analysis of the options which maximise the generation of value.

Our investor base

Nazca has established 5 funds since 2001, totalling around €900m, with profitability of > 25% IRR.

Fund III

61% FdD

Typology

96% International

Geography

10

Number of investors

24%

Percentage of funds from new investors

Fund IV

69% FdD

Typology

92% International

Geography

13

Number of investors

31%

Percentage of funds from new investors

Fund V

69% FdD

Typology

90% International

Geography

10

Number of investors

10%

Percentage of funds from new investors