| UK CASE STUDY: CALACHEM ¦ Subsidiary of 3i-investment KemFine ¦ Potentially large UK pension problem (£50m deficit) ¦ Cyclical market dynamics ¦ Underinvested, unprofitable, unloved ¦ Reason for sale: ¦ Preparation of 3i-investment KemFine for exit Situation ¦ Because 3i/KemFine did not believe in a successful transaction, all customer contracts were cancelled Complication ¦ AURELIUS reached a long-term agreement with pension trustees to mitigate the deficit problem ¦ AURELIUS took a long-term investment view to win back the cancelled contracts and find new customers Solution ¦ Operational approach ¦ Question mark remained as to whether lost contracts could be won back: Possibility of severe restructuring was acceptable for AURELIUS ¦ Investment focus ¦ Long-term agreement with pen

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