Connected. Collaborative. Creative.

Annual Review 2015 Contents

About Cinven 1 2015 investment activity 3 Our value creation 7 From the Executive Chairman 9 From the Managing Partner 11 Our investment matrix 15 Our matrix in action 17 Our sectors 19 Our regions 33 Our Portfolio team 39 Capital Markets team 43 Our Investors 47 Our investments 49 Governance 103 Philanthropy 107 Contacts 111 About Cinven

Cinven is a leading European private equity firm with Our investment criteria the capabilities to grow portfolio companies globally. Our focus is on delivering attractive returns to our investors by increasing the value of our investments through a creative, consistent and collaborative approach.

Since 1988, Cinven funds have invested in Cinven acquires majority stakes in market- leading, cash generative companies, with defensible positions, high growth potential 117 and strong management teams. companies worth around

1 Cinven funds typically make equity €90bn investments in excess of €100 million, and realised proceeds of in companies with an enterprise value of more than €300 million. €30bn2 Our goal is to at least double the invested capital of our investors and the millions of Today, Cinven has beneficiaries they represent. €10.6bn3 in assets under management.

1 Aggregate enterprise value, including ERGO Italia and Kurt Geiger which completed post-2015 year-end and Tinsa and Hotelbeds signed post-2015 year-end 2 Including proceeds from Guardian Financial Services, EnServe, Coor, Numericable Group, Prezioso and Avolon, received post-2015 year-end 3 As at 31 December 2015 2 Cinven Annual Review 2015 2015 investment activity

We delivered an excellent performance in 2015 through successful realisations and maintaining new investment momentum.

Cinven generated strong realised proceeds Meanwhile, Cinven invested around €1.5 billion1 during 2015, through full exits, partial exits and in five new portfolio companies and made Company Date invested Completion date Cinven invested in this aircraft leasing business 1 in the wake of the financial crisis. Following investment distributions. In particular, the sales of AMCo, 21 major add-on acquisitions. Avolon May 2010 January 2016 in new aircraft and international expansion, the Guardian Financial Services and Numericable Sector team Divestment type Enterprise value company listed on the New York Stock Exchange Group were three of the most successful Financial Stockmarket $7.6bn in December 2014 at $20 per share. At IPO, Cinven investments in Cinven’s 25+ year history. Services disposal / corporate Realised only sold 17.5% of its shares. In January 2016, acquirer proceeds Cinven sold its remaining 20% stake to Bohai Leasing, €439m at $31 per share generating an overall return of 2.3x cost on the investment. Money multiple 2.3x Substantial exits in 2015

Company Date invested Completion date Cinven’s Financial Services team’s consolidation thesis Guardian November 2011 January 20161 in the fragmented closed life assurance sector led to the identification of Guardian Financial Services, which A landmark investment that transformed the French Financial Company Date invested Completion date Services Divestment type Enterprise value Cinven backed to roll-up major closed-life books over 2 cable industry and provided a 159% IRR over Numericable March 2005 March 2016 Corporate £1.6bn a four-year ownership period. This culminated in a 11 years and 4.7x cost – one of the largest ever Sector team Group / Altice Financial acquirer business with £17 billion of assets, around 900,000 Divestment type Enterprise value European private equity returns. Cinven introduced Services Realised policies and a healthy balance sheet. This made it Stockmarket €29bn new management and supported Numericable Group Sector team disposal / proceeds highly attractive to Admin Re which acquired the in its sector consolidation and investment in next- TMT corporate Realised €1.6bn business. The sale generated a €1.2 billion capital gain. acquirer proceeds generation triple play services. Numericable Group’s €2.2bn enterprise value today is 55 times that of the first Money multiple 4.2x regional operator Cinven acquired in 2005. Money multiple 4.7x Company Date invested Completion date AMCo was created by the simultaneous acquisition AMCo2 August 2012 October 2015 and merger of Amdipharm and Mercury Pharma, Cinven invested in new services in this UK hospitals companies with diversified and attractive product Company Date invested Completion date Divestment type Enterprise value portfolios. AMCo made five further add-on acquisitions August 2007 July 2015 operator, driving organic growth and broadening its offer. Spire Sector team Corporate £2.3bn to drive geographic expansion and create a global Healthcare The cost of procedures and central costs were optimised Healthcare acquirer following synergies from add-on acquisitions and new business, while launching 44 new products. The Realised Sector team Divestment type Enterprise value build hospitals; Cinven also invested in the development investment has returned cash proceeds of 3.5x cost, Healthcare Stockmarket £1.2bn3 proceeds of facilities to increase theatre capacity and scanning €1.3bn3 and Cinven retains a significant minority stake in the disposal / listed acquirer, Concordia Healthcare Corp. corporate Realised equipment and developed a joint venture with Cancer acquirer proceeds Partners UK. Spire floated in July 2014. Cinven sold down Money multiple €1.1bn its remaining stake at significant value uplifts, including a 3.9x sale to South Africa’s Mediclinic, which acquired a c. 30% Money multiple stake in Spire in July 2015. 1.8x

1 Includes ERGO Italia and Kurt Geiger which completed post-2015 year-end 1 Sale agreed in 2015 2 Distributions during 2013-2016, with a final distribution in July 2016 2 Cinven funds retain a rolled-over interest in acquirer company Concordia Healthcare 3 Market capitalisation at 31 December 2015 3 Realised proceeds to date, excludes remaining unrealised value

4 Cinven Annual Review 2015 2015 investment activity continued New investments in 2015

Premium Credit is an insurance premium finance Kurt Geiger is a leading footwear and accessories Company Date invested Sector team Company Date agreed Sector team company that enables individuals and businesses to company and is the largest retailer of luxury footwear Premium February 2015 Financial Kurt Geiger1 December Consumer spread the cost of upfront premiums. Its products are in Europe. It sells through multiple channels to a 2015 Credit Services a key source of funding for consumers and smaller global market. Regional team Transaction value businesses in the purchase of often mandatory Regional team Transaction value UK & Ireland £462m products, such as motor, home or fire insurance. UK & Ireland Not disclosed

Cinven simultaneously acquired and merged Synlab, 1 Company Date invested Sector team Completed February 2016 a German headquartered provider of human and Synlab August/ Healthcare veterinary laboratory services and environmental October 2015 analysis, and Labco a major European provider of Regional team Transaction value medical diagnostic laboratories based in France. Major add-on acquisitions in 2015 Germany Not disclosed The enlarged Group, Synlab, is now the leading France European operator of laboratory diagnostics. Investment Add-on 1 Add-on 2 Add-on 3 AMCo Primegen Boucher and Muir Tractel is a specialist provider of working-at-height Company Date invested Sector team CeramTec DAI Ceramics equipment. It operates globally through a network of Tractel October 2015 Industrials 8,000 industrial distributors and is a worldwide leader CPA Global Innography in the majority of its niche markets. Regional team Transaction value HEG intergenia Paragon Internet Group France Not disclosed S LV Lagotronics Ufinet Reico

Visma e-conomic SpeedLedger PBJ … and 10 more ERGO Italia is a specialist provider of life and non-life Company Date agreed Sector team insurance products in Italy. Cinven’s acquisition follows ERGO November 2015 Financial 1 its thesis of consolidating regional closed life insurance Italia Services books, a strategy successfully executed through other Our portfolio Regional team Transaction value investments such as Guardian Financial Services (UK) Italy Not disclosed and Heidelberger Leben Group (Germany). In 2015, Cinven had 26 portfolio companies across three funds. Our latest, the Fifth Cinven Fund continues its strong performance, delivering aggregate portfolio revenue and EBITDA growth of 9% and 13% on a LTM basis to 31 December 2015, respectively. 1 Completed June 2016

6 Cinven Annual Review 2015 Our value creation

The main underlying source of returns for Cinven funds is Return attribution of Cinven investments the increased profitability of its investments. By contrast, only a small component of the return derives from debt reductions and refinancing.

Around a third of this profit growth is a result of earnings c. 2/3 of profit growth growth, including the introduction of efficiencies and from revenue growth best practices in areas such as operational improvement, pricing and cash management. The remaining two-thirds of profit growth comes from increased revenue through the organic development of businesses. We see this approach to value creation as inherently sustainable and largely independent of wider market vagaries.

88% of value creation from Cinven equity Multiple Net debt reduction Realised Cinven-driven EBITDA growth expansion and refinancing proceeds Growth from Organic efficiencies revenue growth

This chart excludes acquisition revenue/EBITDA growth as a result of Cinven’s buy and build portfolio growth strategies.

8 Cinven Annual Review 2015 From the Executive Chairman Hugh Langmuir

Cinven has made excellent progress during Given the continued globalisation of markets Cinven is one of the longest established firms in 2015. We remain at the forefront of our industry and the growth opportunities we see for our European private equity, having been founded and enjoy strong competitive positions across companies in Asia and the Americas it is nearly 40 years ago. During 2015, we took the our chosen industry sectors and territories. important that our reach extends beyond Europe. step of ensuring the continuity and long-term Since 2008 we have had a presence in Asia leadership of the firm, ahead of the raising of Clearly we will need to remain alert to the through our Hong Kong Office and in 2015 we the new fund, the Sixth Cinven Fund, by macro-economic impact of the Brexit result on decided to replicate this successful enhancement electing Stuart McAlpine to be my successor our core markets and existing portfolio but based of our investment capability by establishing a as Managing Partner. I believe he is very well on our long experience we are confident that New York office. qualified to fulfil this role as he has been a key attractive new investment opportunities will flow member of the senior team over the past several from the dislocation and change induced by this Our key strength remains the depth and quality of years and has built an exceptional investment major political event. our team. We have one of the most experienced track record during his 20 year career at the firm. and professional teams in the industry and have The firm has continued to benefit from our taken care to nurture and grow it. During the year Overall, the firm has had a very good year and well-established strategy of combining extensive we made a number of new partner promotions is set to continue this success into 2016 and industry sector expertise with comprehensive and recruited an additional 12 members to the beyond, despite whatever challenges are coverage of the European region through our Investment team while continuing to benefit from presented by an uncertain political and network of local offices. This matrix approach a very high level of staff retention. economic environment. enables us to originate investment opportunities early through a deeply embedded network of Of critical importance to an investment business contacts in each country while developing insights like ours is of course reputation and trust. Over and themes on how to create value from them. the year we have therefore continued to invest Hugh Langmuir considerable time and effort in ensuring that we Executive Chairman To further enhance this coverage and recognise conform to the highest standards of transparency the recovery and growth of the Iberian markets and responsibility in fulfilling our fiduciary duties, we opened our new Madrid office early in the year. reporting to our stakeholders and managing the social and environmental aspects of our investments.

10 Cinven Annual Review 2015 From the Managing Partner Stuart McAlpine Our sector-regional matrix embeds us in local markets while giving us a truly global view of an industry.

During 2015, Cinven invested more than during the summer of 2015, to create the largest To execute the successful sale of our €1.5 billion in both new investments and clinical laboratory services company in Europe investments we continued the strong track add-on acquisitions. In particular, we made – Synlab. For more detail on this matrix in action, record of selling to strategic corporate acquirers five new investments across the Industrials, please refer to pages 17 and 18. including the sale of our remaining shares in Healthcare, Consumer and Financial Services Avolon to Bohai Leasing; the sale of Guardian sectors. These were specialty finance business, Cinven also made 21 major add-on investments Financial Services to Admin Re; the sale of a Premium Credit in the UK; the largest clinical to existing portfolio companies. While there significant shareholding in Spire Healthcare to laboratory services company in Europe, Synlab; is nothing new about such buy and build South African-based Mediclinic; and the sale industrials manufacturer, Tractel in France; Italian strategies, we have significantly improved our of AMCo to Concordia Healthcare. We also life insurance consolidator, ERGO Italia; and abilities to identify and integrate acquisitions in a made effective use of equity capital markets, in leading footwear and accessories company, systematised way in order to create lasting value. the case of the successful IPOs of Numericable Kurt Geiger. Group, Avolon and Spire Healthcare. These Confirmation of our rigorous approach is realisations did not happen by chance; the value These investments are further evidence of evidenced by the exceptionally strong exits we derived from such exits are a direct consequence our ability to identify and execute succesful achieved during 2015. We successfully realised of Cinven’s disciplined investment approach transactions, often outside of formal auctions or businesses as diverse as UK life insurance applied over years and supported by an as a preferred bidder. This is a function of our consolidator Guardian Financial Services; infrastructure that has been developed over sector-regional matrix structure, which ensures international niche specialty pharmaceuticals the course of almost four decades. we are embedded in local markets while having company AMCo; and French cable operator a truly global view of an industry. To make this Numericable Group. These constituted three work successfully in a competitive M&A market of the most successful investments in Cinven’s requires the right team dynamic and a truly 25+ year history, each with a significant buy collaborative culture. A great example of how and build component. this works at Cinven, was the simultaneous acquisition and merger of Synlab and Labco

12 Cinven Annual Review 2015 From the Managing Partner continued

Through our combination of informed insight We are already witnessing another busy On this point, I would like to acknowledge the and engaged ownership, we have consistently year in 2016. Our pipeline of new investment contribution of our now Executive Chairman generated strong returns throughout varying opportunities remains robust and the combination Hugh Langmuir. Over the past seven years, economic cycles. Companies in the Fourth of our sector-driven approach, resources and size during his time as Managing Partner, the world Cinven Fund have grown at an average annual regularly raises us out of the competition for ‘on- economy witnessed extreme volatility, crisis and compound rate of 8% for both revenues and market’ deals. In addition, we have consistently recession. During that period, Cinven has pursued profits, while companies in the Fifth Cinven shown our ability to invest through industry its investment approach with discipline and Fund have generated average annual compound dislocations. The performance of our existing conviction, and this has unequivocally paid growth in revenues of 9% and profits of 13%. portfolio companies across our six sectors is also off. It is testament to Hugh’s leadership and very encouraging. Those more exposed to cyclical considered strategy through the downturn that In 2016, we successfully raised €7 billion of markets during the downturn are growing strongly we have in place such a strong market and new capital, the Sixth Cinven Fund. Cinven is with the support of our Portfolio team, who are competitive position. I look forward to working therefore well positioned to continue originating situated across three continents. alongside Hugh and our outstanding team in exciting investment opportunities and generate creating further value for investors throughout highly attractive returns. 2016.

Stuart McAlpine Managing Partner

14 Cinven Annual Review 2015 Our investment matrix

Our sector and regional expertise combines local knowledge with a truly global view of industries.

Our sector-focused and regional matrix, combined with our functional expertise, ensures we have a three-dimensional view of investment opportunities and portfolio company support. Our six Sector teams play a leading role in developing investment theses and typically work with our Regional teams in identifying specific investment opportunities. Our local presence ensures we have an understanding of customs, regulations and culture as well as the ability to build trusted relationships with management Sector expertise Regional presence teams and vendors. Investment opportunity Meanwhile, our in-house expertise across areas such as business operational improvement, buy and build strategies, and equity and debt capital markets means we have both the commercial and financial resources to support our portfolio companies throughout their growth.

Functional capabilities

Our portfolio in 2015, by sector and regional headquarters

Business Services Benelux Business Financial Consumer France Services Consumer Services Healthcare Industrials TMT Financial Services Germany & Central Europe Benelux • Healthcare Iberia France • • • • • Industrials Italy Germany & Central Europe • • ••• • TMT Nordics Iberia • Turkey & Emerging Europe Italy • UK & Ireland Nordics • • Turkey & Emerging Europe • UK & Ireland •• •••• •• • Portfolio team Capital Markets team

16 Cinven Annual Review 2015 Our matrix in action

Synlab Equity requirements Cinven teams collaborate to execute Synlab/ Labco acquisitions and merger (Investor Relations team) The sizeable equity underwrite required to acquire these businesses (more than €1 billion) necessitated a co-investment partner who could move quickly. Our Investor Relations team Healthcare Capital Markets The simultaneous acquisitions and subsequent merger France Portfolio worked to ensure that an existing Cinven LP, Germany Investor Relations of European diagnostics businesses Labco and Synlab – Ontario Teachers’ Pension Plan, was able to Communications to form Synlab – demonstrates the effectiveness of gain sufficient comfort in our strategy in order to take a minority co-investment interest in the Cinven’s collaborative structure and sector/regional expertise. combined Group. Integration (Portfolio team) Execution of these transactions required relationships with each separately over many Combining two culturally diverse businesses seamless collaboration between our Healthcare, months. As a result of this proactive approach, can be incredibly challenging. Before closing, 14 French, German, Portfolio, Capital Markets and we put ourselves in a unique position to buy our Portfolio team provided assurances Investor Relations teams. Labco on a bilateral basis as an alternative and clear guidance that such a merger was to its IPO, at an attractive standalone entry achievable based on a detailed assessment of valuation. We had also therefore created a the two companies’ operations and teams and 12 Identifying the opportunity highly synergistic proposition to secure Synlab, deep experience of similar merger processes. (Healthcare team) consistent with our vision of creating a pan- Immediately after signing, the team worked with European champion in the industry. Cinven’s management to implement a project structure The investment in Synlab is based on a thesis 10 developed over many years by our Healthcare local teams, working with local advisers, provided based on proven models of previous integrations. team’s understanding of reimbursement pressures the expertise to achieve the execution of both This helped to remove uncertainty and reduce across different healthcare markets, and refined acquisitions in separate jurisdictions virtually integration risk, as well as ensure that the Group could achieve significant synergies from the through successive investments at different points simultaneously. 8 in the diagnostics value chain. For example, two outset, over and above the original business plan. prior and highly successful Cinven investments, Financing requirements Phadia and Sebia, respectively Swedish and Result (Capital Markets team) Through collaborating internally, and creating involved Team French in-vitro diagnostics companies, were 6 The transactions occurred in 2015 during what the connection between Labco and Synlab, both suppliers to Synlab and Labco. In particular, was a tumultuous summer for the credit markets the Healthcare team developed a differentiated we successfully executed two highly complex, amid a Greek ‘in-out’ referendum. Despite this simultaneous cross-border transactions, investment thesis predicated on realising the challenge, our Capital Markets team used its benefits of scale, geographic diversity and amounting to the largest single investment 4 expertise, relationships and reputation to finance in Cinven’s history. operating across a pan-European platform. both acquisitions on attractive terms. For Labco, we deployed a highly innovative backstop facility, The combination of Labco and Synlab will Local insight which, after signing the deal, we took out by provide clear benefits for patients and payors 2 (French and German teams) placing bonds in the high yield market together across Europe and, under our ownership, we With the help of our local teams in France with a revolving credit facility on borrower-friendly believe that the combined business, Synlab, and Germany, together with our expertise in terms. For Synlab, we assembled a lending is well placed to cement its position as the healthcare and experience in diagnostics, we group of six banks to underwrite a bridge facility, European champion in the diagnostics industry. 0 gained privileged access to both Labco and which was subsequently taken out through a 2010 Jun 14 Dec 14 Mar 15 Jun 15 Sep 15 Today Synlab’s management teams and developed ‘tap’ issuance on the existing high yield bonds. 18 Cinven Annual Review 2015 Our sectors

We segment investment opportunities by sector. Each of our six Sector teams have exceptional Business Consumer investment experience within their domains and Services business models.

A sector approach allows us to take a global view of industries and to develop cross-border themes and investment strategies that can be executed in close co-operation with our respective Regional teams. Financial Healthcare Services

Industrials TMT

20 Cinven Annual Review 2015 Our sectors

Business Services Public market appetite for the Business Services sector has driven up valuations in recent years, peaking in the summer of 2015. This enabled us to divest the majority of our stake in Nordic facilities management company Coor through a Nasdaq Stockholm listing in June 2015 and later in the year we sold the final remaining business of EnServe Group (completed in January 2016). In addition, Our Business Services team in January 2016 we entered exclusive negotiations to sell Prezioso Linjebygg, a service provider to comprises six investment the global energy industry, to a corporate acquirer. professionals and has made The sale was completed in May 2016.

12 investments representing Looking ahead, we expect a more buyer-friendly €2.3 billion of committed capital. environment to emerge and a potential cyclical opportunity, with many newly listed business services companies trading below IPO price.

The sector remains highly compatible with our investment approach, given its structural growth, cash generation and defensibility in certain sub- sectors. However, we retain price discipline and remain highly selective, avoiding commoditised areas in favour of business-critical services that are embedded within clients’ own processes. Our current investment in IP services company CPA Global is an excellent example, where its Our Business Services portfolio in 2015 technology-enabled services are integral to the way each client protects their intellectual Nicolas Paulmier Partner property worldwide. Coor Prezioso Linjebygg Jorge Quemada Partially realised* Current* Partner Our approach to the sector is systematic and Thilo Sautter Partner thesis-driven. Looking ahead, we are focusing our CPA Global Pronet efforts on opportunities related to increasing global Current Current travel and trade and also a trend towards health and safety regulation. The latter is a theme with Enserve Group growth potential independent of wider economic Current* performance. We are also attracted to specialist distribution services in the business-to-business and industrial markets. In addition, the education * Realised in 2016 and training sub-sector has strong structural growth characteristics across geographies, given that the provision of state-funded education is not keeping pace with domestic demands or the international mobility of white-collar workers.

22 Cinven Annual Review 2015 Our sectors

Consumer In 2015, we saw strong deal flow in the European Consumer sector. However, competition from IPO markets and corporate acquirers kept valuations high. We remained price disciplined and focused our deal- origination efforts on specific sub-sectors that demonstrate attractive and defensible growth characteristics that would benefit Our Consumer team comprises from Cinven’s proven investment strategies seven investment professionals of internationalisation and consolidation. and has made 17 investments These sub-sectors include food and beverage brands, cosmetics, specialist retailers and representing €3.3 billion of baby products. We also remain focused on committed capital. those European markets with stronger growth, such as the UK, the Nordics and Iberia.

We are particularly attracted to leading brands that would benefit from Cinven’s value creation strategies focusing on organic growth, best practice implementation, acquisitions and internationalisation.

For instance, during 2015 we agreed the acquisition of leading fashion brand Kurt Geiger, a business that enjoys omni-channel distribution, including a fast-growing eCommerce operation. Cinven acquired the business at an attractive multiple due to our active origination and strong relationship with management. Following the completion of the investment in February 2016, we are well placed to help the company further implement best-practices to drive organic Our Consumer Portfolio in 2015 growth, as well as support its continued international expansion.

Peter Catterall Camaïeu Maxeda Partner Current Partially realised Maxim Crewe Partner Guy Davison Partner Xavier Geismar Partner

24 Cinven Annual Review 2015 Our sectors

Financial Services It was another highly successful year for our Financial Services team, with strong portfolio performance, one new investment completed, and more than €2 billion of capital realised.

In September, Cinven agreed the sale of UK- based Guardian Financial Services to Admin Re, realising a €1.2 billion capital gain; and in Our Financial Services team early January 2016, Cinven fully realised the investment in aircraft leasing business Avolon comprises eight professionals through its acquisition by Shenzhen-listed and has made five investments Bohai Leasing. This followed the company’s 2014 New York IPO at $20 per share and the representing €1.4 billion of sale of the business to Bohai at $31 per share, committed capital. ultimately generating total proceeds of more than €400 million. In addition, the combination of a recapitalisation and a small divisional divestiture from Heidelberger Leben Group returned almost €140 million.

In February 2015, Cinven acquired Premium Caspar Berendsen Credit, a UK-based insurance premium finance Partner company, at an attractive multiple. The business Peter Catterall has traded above plan in its first year. Meanwhile, Our Financial Services portfolio in 2015 Partner our acquisition of ERGO Italia, announced in November 2015, continues to fulfil our investment thesis focused on the closed life Avolon Partnership insurance market that began in the UK with Partially realised* (Renamed JRP Group following a merger) Guardian Financial Services and continues Partially realised with Heidelberger Leben Group in Germany. Guardian Financial This opportunity is highly repeatable between Services Premium Credit markets, and we are working alongside our Current* New in 2015 Regional teams to acquire domestic players in attractive markets that can act as consolidation Heidelberger Leben platforms through structured buy and build Group programmes. We now enjoy a significant Current advantage as an investor in the sector, having built the expertise, regulatory approvals across several markets and an understanding of how value can be created in this highly regulated * Fully realised in 2016 and complex sector within financial services.

26 Cinven Annual Review 2015 Our sectors

Healthcare Healthcare-related global M&A was very buoyant during 2014 and 2015, and our Healthcare team was also highly active, with two major divestments and two landmark new investments during 2015.

In June, Cinven divested its final stake in UK hospitals operator Spire Healthcare at 340 pence per share, having floated the company Our Healthcare team comprises on the London Stock Exchange a year earlier at 210 pence, to conclude a profitable investment. nine professionals and has made In October, Cinven sold niche pharmaceuticals 13 investments representing company AMCo to Toronto and NASDAQ-listed Concordia Healthcare for £2.3 billion, while rolling €3.7 billion of committed capital. over a minority interest.

In terms of new investments, the team used its long-term understanding of the diagnostics industry to identify and execute the simultaneous acquisitions and subsequent merger of France-headquartered Labco and Germany- headquartered Synlab, making this, in aggregate, the largest investment in Cinven’s history (see case study, pages 17 and 18).

Understanding the strain on reimbursement systems in the Healthcare sector is central to our investment philosophy across this industry. Our Healthcare portfolio in 2015 We look for companies that help contain the cost of healthcare provision and, since prevention Alex Leslie Partner is better than cure, we have focused significantly AMCo Spire Healthcare Nicolas Paulmier on diagnostics. This demonstrates our ability to Partially realised Realised Partner fully understand single market dynamics (e.g. Supraj Rajagopalan Partner diagnostics) and how to apply this successfully Medpace Synlab across multiple investments and across multiple Current New in 2015 funds. These range from Phadia and Sebia (formed with the merger (previous investments) through to existing of Labco and Synlab) investments such as Medpace, which provide more efficient R&D. Meanwhile, other investments also fit this efficiency focus, such as AMCo’s specialisation in niche, off-patent prescription products.

The recent merger of Labco and Synlab continues this story, with the creation of a European diagnostics champion with significant international potential.

28 Cinven Annual Review 2015 Our sectors

Industrials The Industrials sector saw significant M&A activity during 2015 from both corporate and private equity vendors, but with abundant debt financing and strong IPO markets pushing valuations upwards. Despite the challenges, it was a highly productive year for Cinven, marked by our investment in Tractel. Tractel was acquired through exclusive negotiations with the Our Industrials team comprises vendors, as a result of the seamless collaboration seven professionals and has between our French and Industrials teams. made 23 investments representing Buy and build is an important element to our Industrials growth strategy and during the year €4.2 billion of committed capital. we supported several add-on acquisitions including CeramTec’s purchase of US-based DAI Ceramics and SLV’s acquisition of its Dutch distributor Lagotronics as part of a ‘forward- integration’ strategy.

With the support of our Portfolio team, we have continued to work closely with management teams to further enhance the operational performance of our current portfolio companies which has resulted in a positive year of trading.

We expect to see more attractive opportunities as valuations become more moderate. With four Our Industrials portfolio in 2015 nationalities in the Industrials team and Cinven’s global support infrastructure, we are well-placed Xavier Geismar to capture investment opportunities for regional Partner Avio S LV Pontus Pettersson businesses with the potential to become global Partially realised Current Partner champions. Bruno Schick CeramTec Tractel Partner Current New in 2015

JOST Current

30 Cinven Annual Review 2015 Our sectors

TMT Our TMT portfolio generated significant value during 2015, with major buy and build activity, distributions and further organic growth.

During the year, HEG completed a significant add-on acquisition of Paragon Internet Group, marking its fourth significant acquisition. The business also returned 45% of Cinven’s original Our TMT team comprises eight equity investment through a recapitalisation. Meanwhile, Nordic accounting software professionals and has made provider Visma completed a further 13 add- 16 investments representing on acquisitions during the year taking the total number of acquisitions completed under €3.7 billion of committed capital. Cinven’s ownership to 15.

2015 was also our final full year of ownership of the Numericable Group, the total proceeds of which reached €2.2 billion. This was one of the largest European private equity returns ever.

Our investments in TMT reflect the meta-trends David Barker of increasing demand for access to cheap Partner bandwidth and the migration of IT infrastructure Nicolas Paulmier to the cloud. The latter directly underpins Partner the structural growth behind several of our investments, including HEG on the hosting side, as well as Visma and Northgate Public Services, Our TMT portfolio in 2015 which provide niche, embedded software services, at scale. Such business models have high levels of recurring revenues and a loyal HEG Numericable Group customer base. Current Partially realised* We also expect the increasing permeation of Northgate Public Ufinet technology within businesses to present new Services Current investment opportunities beyond the traditional Current IT sector. Visma Current

*Fully realised in January 2016

32 Cinven Annual Review 2015 Our regions

In addition to being organised within six Sector teams, our investment advisory team is structured within Regional teams that operate from offices in London, Frankfurt, Paris, Madrid and Milan, with support from our Portfolio and Investor Relations professionals based in Hong Kong and New York.

Our long-standing presence and reputation Typically, our Regional teams use their 2015 was a record year for our French team, for informed and responsible investment in the understanding of local cultures and regulatory marking the final full year of our landmark regions outlined below regularly allows us to environments to apply insights from our Sector investment in Numericable Group, which acquire assets and partner with management teams to specific investment opportunities in transformed the French cable industry by teams on a preferred basis. domestic markets. leading the industry’s consolidation and investing in the rollout of next generation services. The investment returned more than €2 billion to investors and 4.7x cost. Also, in May 2016, Cinven completed the sale of Prezioso Linjebygg, a service provider The Benelux provides a consistent flow of quality to the global energy industry, to Altrad Group. secondary opportunities from smaller private equity portfolios, as well as significant corporate In addition, our French team completed two carve-out and take-private potential. The France sizeable investments, both executed outside of Netherlands, in particular, is a well-developed a competitive auction process. Tractel, acquired private equity market, representing around 10% Sector preferences Notable investments in July, was a thesis-led investment around of European buyouts. We are optimistic about Business Services Camaïeu working-at-height equipment, identified by investment opportunities in 2016-2017. Healthcare Générale de Santé our Industrials team and effected as a result Industrials Labco of Cinven’s strong reputation in the French As a firm, we have an excellent investment Numericable Group market. Similarly, our investment in Labco was track record in the region through investments Prezioso Linjebygg a seamless collaboration with our Healthcare going back to the 1990s. Our London-based Sebia team. Our reputation for dependability and Dutch-speaking team has a strong reputation Tractel responsibility in France positioned us to acquire Benelux with vendors, advisers and stakeholders, the business following a failed IPO process. through investments such as Dutch cable (This follows our successful investment in Sector preferences Notable investments operator Ziggo, which transformed the Dutch French-headquartered Sebia, a provider of in- Business Services Holland Re consumer’s TV, online and telephony experience. vitro diagnostics equipment and reagents that Consumer Maxeda The company floated on the NYSE Euronext are used by Labco facilities.) Both Labco and Healthcare Smurfit Kappa Amsterdam in 2012 and generated total Tractel were acquired at attractive entry multiples. Industrials Springer proceeds of €1.7 billion. TMT Ziggo Cinven is a leading player in the French market and one of the most active international players for deals in our size bracket over the past decade.

34 Cinven Annual Review 2015 Our regions continued

Cinven has made three large investments in Germany since 2013 and invested c. €1 billion. This is a function of the trust and reputation that we have built up over 15 years in the region. Iberia Italy On each occasion, our German team, based in Frankfurt, has worked seamlessly with our Sector preferences Notable investments Sector preferences Notable investments Sector teams to deliver on proprietary investment Business Services Amadeus Consumer Avio theses. These have included our investment TMT Internacional Financial Services ERGO Italia in Synlab in October 2015, as well as our de la Medicina Healthcare investments in Heidelberger Leben Group in Parques Reunidos Industrials 2014 and numerous add-on acquisitions. Ufinet

Our existing German-headquartered companies Our investment in life insurance business ERGO Italia, signed in November 2015, Germany and Central Europe progressed well during 2015. In May, CeramTec Following a difficult downturn, Cinven’s Iberia acquired US-based DAI Ceramics, a business team demonstrated its belief in the region with demonstrates the importance of cultural and Sector preferences Notable investments with a complementary product portfolio an investment in fibre network operator Ufinet in regional knowledge combined with sector-led Consumer CeramTec and geographic footprint. JOST, the leading 2014 and a subsequent new office opening in theses. Prompted by our Financial Services Financial Services Heidelberger assembler of components for trucks and trailers, Madrid in 2015. With Ufinet performing strongly, team, Cinven was the first suitor to call Banca Industrials Leben Group performed strongly in Europe, North America we remain positive on the opportunity for new Leonardo regarding the sale of the business, TMT JOST and Asia, with a positive contribution from the investments, as pent-up sales mandates come which we had been tracking for a number of Klöckner Pentaplast recent add-on acquisition of Mercedes Trailer to market amid a rebounding economy and years prior to Munich Re’s decision to sell. Due S LV Axles. Meanwhile, lighting business SLV acquired increasing consumer confidence. In addition, diligence involving the local actuarial community Springer its Dutch distributor Lagotronics as part of a the crisis forced good Spanish companies to and regulatory approvals were largely conducted Synlab ‘forward integration’ strategy. seek out export markets, and Cinven is very in Italian and our Italian team will be integral to well-placed to support such internationalisation the company’s acquisition strategy across Italy’s The team also has responsibility for Central strategies. fragmented life insurance sector. European countries, which we believe have increasing potential for future dealflow in sectors We are particularly attracted to leading Spanish We also have a good track record of supporting such as Consumer, Financial Services and TMT. companies that are a natural door into Latin Italy’s world-leading industrial sector, through America. This is the case with Ufinet, which has our investment in Avio, a maker of sub-systems significantly increased its penetration into South and components for military and commercial America during our ownership. Cinven has a jets. The €3.3 billion divestment of Avio’s aviation strong track record in Iberia through investments business to GE in 2012, combined with a such as Amadeus, the global travel technology distribution in 2015, has returned 2.1x the cost company, which realised more than €1.6 billion, of investment. Meanwhile, Cinven retains Avio’s or 7x cost. space division, which continued to enjoy strong revenue growth during 2015.

36 Cinven Annual Review 2015 Our regions continued

Despite being Europe’s largest and most competitive private equity market, we consistently find attractive thesis-led investment opportunities in the UK. Cinven’s latest investments include the acquisition of Northgate Public Services in December 2014; speciality finance provider Premium Credit in February 2015; and iconic retailer Kurt Geiger, announced in December 2015 and completed in February 2016. In particular, we have a strong presence in UK financial services, and our experience here has informed our pan-European rollout of similar strategies particularly in life insurance Nordics Turkey and Emerging Europe UK & Ireland consolidation.

Sector preferences Notable investments Sector preferences Notable investments Sector preferences Notable investments The UK & Ireland saw a significant number of Financial Services Ahlsell Business Services Pronet Consumer AMCo exits in 2015. In October, Cinven sold specialty Healthcare Coor Consumer Industrials CPA Global pharmaceuticals company AMCo to Toronto- TMT Phadia Healthcare TMT Fitness First listed Concordia Healthcare, increasing realised Visma TMT General Healthcare cash proceeds to 3.5x cost as well as receiving Gondola a minority stake in the acquirer. Cinven also sold Since 2007, Cinven has invested over €1 billion Emerging European countries are a relatively small Guardian Financial Guardian Financial Services to Admin Re for of equity in Nordic companies, including 2014’s but important part of our European coverage due Services £1.6 billion, realising more than €1 billion in acquisition of Visma, a well-known enterprise to the growth potential and we are well-positioned NCP capital gain. software company. In 2015, we partially realised to originate and capture interesting opportunities Northgate Public our investment in Coor through a listing on the across the region each year. Investment Services In addition, we made effective use of public Nasdaq Stockholm exchange. While the Nordic opportunities are almost exclusively primary, with Partnership market appetite for Cinven’s portfolio companies private equity market is sophisticated and highly great scope for operational improvement and value Premium Credit with the profitable sell-down of stakes in Avolon competitive, the predominance of outward- creation. Our current investment in the region, Spire Healthcare and Spire Healthcare, which were first listed on looking, export-oriented companies fits well Turkey-based Pronet, has exhibited a resilient the New York and London stock exchanges in with Cinven’s pan-European network and global performance recently through the adoption of 2014 respectively. As part of the Spire Healthcare support infrastructure. international best practices. divestment process, Cinven sold a significant portion of its stake to South Africa’s Mediclinic Cinven has a good track record in the Nordic During 2015, we entered into publicised in July with Avolon ultimately being sold to region, through landmark investments such as in- discussions with the Slovenian government Bohai Leasing. vitro diagnostics business Phadia, which was sold regarding the privatisation of Telekom Slovenije, in 2011 and provided a c. €1 billion capital gain, and while this investment did not ultimately Cinven also fully exited casual dining operator representing 3.4x the cost of investment. transpire, we remain interested in similar Gondola in January 2015 following major opportunities in the region that fit the investment divestments of its restaurant brands during objectives of our Sector teams. Emerging 2013 and 2014, generating a total return of European coverage is also important for add-on 2.4x the cost of investment. acquisitions for existing Cinven portfolio companies and we actively pursue such opportunities. 38 Cinven Annual Review 2015

Our Portfolio team

By collaborating with management teams, of Cinven’s portfolio companies, we are helping them build stronger, better quality businesses. The Portfolio team

Our approach to engaging with our portfolio This model has so far proved exceptionally 1  2 3 companies has consistently evolved over recent effective. To-date, in our most recent fund, funds from a supporting and monitoring role our Capability Champions have been towards active facilitation, connection and directly involved in more than €1.4 billion collaboration with management. of value creation.

Today, we see our role increasingly as For instance, when developing a buy and build ‘strategic architects’. In 2014, we formalised programme we collaborate with management 4 5 6 this approach with the introduction of ‘Value teams to systematically identify and qualify Creation Plans’ – a structured and enhanced targets, and execute integration plans. During management business plan for each company 2015, the Fifth Cinven Fund made 19 major going far beyond the traditional 100 day plan. add-ons, taking the total to more than 34 In addition, we organised our own team into add-ons, from a total 13 investments in the fund. areas of functional expertise, which apply broadly across the portfolio. Each of these These capabilities not only help our portfolio areas has a ‘Capability Champion’ – individuals companies, but also inform our understanding 7 from our Portfolio team with a portfolio-wide of new opportunities, such as assessing the competency relating to one of our six scope for internationalisation strategies, or the capabilities (see below). feasibility of mergers, such as in the case of Labco and Synlab. Our six functional capabilities By constantly looking to improve our own processes as well as our portfolio, during 2015 we updated our portfolio company Joseph Wan 1 Antoine Guillen 4 monitoring to incorporate more operational Partner Director Internationalisation Immo Rupf 2 Brett Lewis 5 and forward-looking KPIs that flow into a Partner Executive sophisticated and regularly updated reporting 3 6 Digital Ivan Kwok Tony Ling Cash system. This gives us further confidence and Managing Director Executive Disruption 7 visibility into likely performance or challenges Pete Blakeney Executive ahead within the portfolio.

Pricing Buy and build

Sales force effectiveness

40 Cinven Annual Review 2015 Our Portfolio team continued

VCP in action

Our functional expertise

Cinven’s Capability Premium Credit, a UK-based insurance Cinven invested in Spanish cable operator Champions premium finance company, was acquired Ufinet in June 2014 to exploit the significant in February 2015, and provides a good growth opportunities, particularly across illustration of a value creation plan in action. Latin America. We have since made rapid Our strategy is to build a diversified UK progress in constructing and implementing specialty finance business through organic a value creation plan alongside management. growth, new product launches and selective Internationalisation acquisitions. Within a month, we had This has included commercial work-streams, achieved internal management commitment such as reviewing commercial effectiveness, to develop an ambitious but practical value the sales teams’ capacity, incentive systems, Digital Cash creation plan. pricing, payback and return policies. It also Disruption included operational work-streams, including This included taking a fresh look at the developing new services for metropolitan business’ cost and revenue potential and areas, expanding network deployment, undertaking customer interviews to reveal improving and automating Ufinet’s own perspectives, opportunities and sources systems, operational KPIs and reporting, Pricing Buy and build of revenue leakage. and evaluating acquisition targets.

Sales force Over the summer we reviewed the findings Ufinet made its first acquisition in 2015 effectiveness and worked with the business to develop with the purchase of Reico in Costa Rica, tangible and measurable operational initiatives and the company has gone on to acquire – from strengthening the CRM through to Horarada, a Spanish cable operator. expanding into new markets. Each initiative was assigned detailed processes, KPIs and a business ‘owner’. By late 2015, the company was in the process of executing the value Portfolio creation plan, with early indications of its company targets being achieved looking positive.

42 Cinven Annual Review 2015 Capital Markets team

During 2015, our in-house Capital Markets team led a Capital Markets team activity in 2015 number of innovative debt and equity market processes relating to new and existing portfolio companies.

Amid the persistent market volatility and In addition to financing for new investments macro-economic uncertainty of recent years, and add-on acquisitions, the team is active our portfolio companies have maintained robust in optimising the balance sheets of existing and flexible debt capital structures. This is a investments and also ensuring that portfolio consequence of our decision, more than a companies close to exit have financing decade ago, to systematise our approach arrangements that are refreshed and in good within a dedicated Capital Markets team. order. This provides a clear ‘runway’ in its funding terms, as the company enters its Besides our debt markets work, we have next phase of ownership. Financing new investments Financing add-ons brought more of our equity capital markets Debt Capital activities within the remit of the team, a move Markets Optimising portfolio Supporting exits that has helped us optimise realisations through the public markets.

The Capital Markets team

1 2 3

Matthew Sabben-Clare 1 Partner Soren Christensen 2 Partner Christopher Anderson 3 Equity Managing Director Capital Markets IPOs / ABBs

44 Cinven Annual Review 2015 Capital Markets team continued

Debt capital markets activity in 2015 Equity capital markets activity in 2015 Throughout the life of the Fifth Cinven Fund We have built in further flexibility for our portfolio As a financial sponsor, Cinven has been an we have focused on developing robust debt companies through the use of long-dated debt extremely active and regular user of the public structures within our portfolio companies with with ‘bullet’ or lump sum repayments payable at equity markets as an exit route. During 2015, we the capacity to withstand less favourable market maturity, further minimising refinancing risk. effected 10 equity capital markets transactions, environments. In addition, we have used our deep relationships including initial public offerings (IPOs) and across the banking and credit funds markets subsequent secondary sales of our stakes. More than half of the investments in the Fifth to ensure the size of lender groups remains Cinven Fund have a particular set of borrower- manageable, so they are capable of moving Centralising these processes through our friendly terms, known as ‘covenant-light’. quickly to support each company as dedicated Capital Markets team has allowed Three-quarters of the companies have an opportunities arise. us to build up a detailed understanding of all-senior debt capital structure, which is simple, the processes and technical requirements flexible and cost-effective. We have been highly The average leverage level (net debt/EBITDA) to effect successful sell-downs post-IPO, selective in our use of subordinated debt and across investments in the Fifth Cinven Fund was as well as hone our timing and judgement in have often elected to deploy less leverage than c. 4x on 31 December 2015. our engagements with the public markets. the amount offered by the market.

Relationship-based LBO financing Accelerated underwriting Innovative refinancing Strategic sell-down

The debt capital markets were fairly Our investment in Labco was predicated Combining Financial Services sector When we floated Spire Healthcare in July volatile during our acquisition of industrial on our ability to execute the transaction expertise with our Capital Markets focus, 2014, amid a backdrop of market volatility, manufacturer Tractel, which completed in very quickly, and amid growing debt market we have been able to bring together and we chose to retain our entire holding, with October 2015. Therefore, rather than opt volatility. In addition, due to a dual-track educate a select group of banks about the confidence that a public listing would for a widely distributed syndicated loan, we sales process, some of the company’s Cinven’s various life insurance investments. allow us to participate in further appreciation structured the financing with around half the existing lenders were conflicted and could In 2015, we assembled eight institutions to of the company’s equity value. Over the required debt facility held by a tight group of not underwrite a financing. Despite this, recapitalise German-based Heidelberger course of the ensuing 11 months, we sold our relationship banks keen to demonstrate their we were able to secure a backstop of Leben Group following its strong trading remaining stake through a series of four sell- support for the structure; and half distributed the company’s existing bonds in a very performance. The transaction, combined with downs, namely three overnight ‘accelerated to the institutional market. This combination – compressed timeframe. After signing the a simultaneous disposal of non-core assets book-building processes’ (ABBs), and the of a traditional banking ‘club deal’ and deal, we refinanced the backstop with a new and the unwinding of legacy hedges, enabled sale of 30% of the company to a strategic an ‘underwrite-to-distribute’ approach – senior secured notes offering and were able the business to return proceeds equalling investor. These secondary sales were all de-risked the syndication process. In addition, to place a revolving credit acquisition facility around 80% of the investment’s original cost, at a material premium to the flotation price. given the high demand among funds, we with nine lenders on borrower-friendly terms, without materially adding to its risk profile. were able to lower the price of the debt given our strong banking relationships. These through a “reverse flex” and incorporate factors meant we were able to transact in a flexibility in the structure to allow for future demanding market and tight timeframe. bolt-on acquisitions.

46 Cinven Annual Review 2015 Our Investors

Cinven has a global institutional investor base, Current investors by geography (by number)* Current investors by type (by amount invested)* consisting largely of corporate and public pension 1 1 Americas 44% 1 1 Public pension fund 47% funds, sovereign wealth funds, life insurance 4 7 2 Europe 34% 6 2 Sovereign wealth fund 16% companies, endowments and foundations, 3 Asia 15% 5 3 Insurance 10% 3 and family offices. 4 Middle East 7% 4 Corporate pension fund 8% 4 5 Fund of funds 5% 6 Family office 4% 3 7 Endowment and others 10% 2 2 We view our investors (Limited Partners or LPs) We seek to build lasting relationships with as long-term partners and we cultivate the our Limited Partners evidenced by the fact * As at June 2016 (Sixth Cinven Fund) relationships with transparency, dedication and that two of our original pre 1995 pension fund care. We are ever mindful of our responsibilities investors – British Coal and Oak Pension Asset Investor Relations towards our Limited Partners. Management (formerly Barclays Pension Fund) and Fundraising team – have invested with us for more than 20 years. Our global investor base consists primarily In addition, we actively develop new relationships of corporate and public pension funds, across the world and continually seek new long- 1  2 3 4 sovereign wealth funds, life insurance term relationships with Limited Partners. companies, endowments and foundations, and family offices. While Cinven’s relationship Our Investor Relations and Fundraising team is with these institutional investors, we are (IR team) is a group of senior individuals with highly cognisant of the impact our performance investment and/or operational experience, who has on the ultimate beneficiaries of those funds. serve as key points of contact between Cinven and its LPs. The IR team strives to uphold the 5 6 Our latest fund, the Sixth Cinven Fund, has highest standards of communication across 7 8 €7 billion of capital and an investor base all interactions with Cinven’s Limited Partners. comprising more than 90% of existing investors in Cinven funds. Co-investment opportunities have become a sought-after feature among some LPs and Cinven’s IR team has developed a structured process to ensure those investors interested are presented with the opportunity to co-invest alongside Cinven. Alexandra Hess 1 Jonas Nilsson 2 Yalin Karadogan 3 Sarah Verity 4 Partner Partner Partner Managing Director Tarek Bayazid 5 Matthew Jenkins 6 Adam Watkins 7 Morgan Schmit 8 Director Assistant Director Executive Executive

48 Cinven Annual Review 2015 Our investments

In 2015, Cinven had investments in 26 portfolio companies Financial across three funds. All portfolio companies have global Services headquarters in Europe or significant European operations. Avolon Guardian Financial Services Healthcare Heidelberger Leben Group Partnership AMCo Premium Credit Medpace Spire Healthcare Synlab

Consumer

Camaïeu Industrials Maxeda Business Avio Services CeramTec JOST TMT Coor S LV CPA Global Tractel HEG EnServe Group Northgate Public Services Prezioso Linjebygg Numericable Group Pronet Ufinet Visma

50 Cinven Annual Review 2015 Our investments Coor

Business Services Integrated facilities management

Acquired Sales Value creation Cinven has worked closely with management to Dec 2007 €800m increase Coor’s revenues as well as strengthen 12 months ending and diversify its offerings to create one of the HQ December 2015 (actual) most resilient Nordic facilities management platforms. This has included initiating a number Sweden Employees of strategic acquisitions to accelerate the (Nordic region) 6,500 transformation of Coor from a Swedish to a (approximate) pan-Nordic IFM provider across the region. The acquisition of Lujapalvelut doubled Coor’s presence in Finland, while the acquisition of Addici strengthened and broadened its customer base into the SME sector. The business in 2015 During Cinven’s ownership, the company also Following strong underlying revenue growth strengthened its leadership team, including the in Coor’s integrated facilities management appointment of Mikael Stöhr as CEO. (IFM) division during 2014 and early 2015, Cinven chose to split the Coor business in two parts: IFM and Industrial Services. Coor IFM successfully listed on the NASDAQ Stockholm on 16 June 2015, at SEK38 per share. The IPO was several times oversubscribed despite wider stock market volatility, and priced just below the top of the range. The business significantly deleveraged as part of the IPO to less than three CEO times EBITDA. Mikael Stöhr Coor IFM delivered strong growth during 2015, driven by good progress in Norway, Sweden Cinven representative and Denmark. The business continues to win Soren Christensen significant new contracts especially in Norway driven by low oil prices accelerating the need for www.coor.com efficiencies through IFM outsourcing solutions. Cinven retains Coor’s Industrial Services business, now renamed Jernbro.

52 Cinven Annual Review 2015 Our investments CPA Global

Business Services Intellectual property management software, services, information and analytics

Acquired Gross income Value creation CPA Global has a fundamentally attractive March 2012 £235m business model, with high earnings visibility 12 months ending due to the large stock of patents managed HQ December 2015 (audited) by the company (it renews over 1.6 million patents annually, close to twice the volume Jersey Employees of its nearest competitor). CPA Global also (global operations) 2,000 provides the IP management software that (approximate) enables the core patent renewals business. This is also a stable, growing and global market, driven by the long-term growth in R&D expenditure and an increasing requirement to protect IP through patents. Given that IP The business in 2015 protection is business-critical, irrespective of the CPA Global continues to progress well under economic environment, this affords CPA Global Cinven’s ownership, and achieved strong a highly defensive business model. earnings performance in 2015. Cinven’s investment strategy is to accelerate Cinven and management continue to work CPA Global’s growth by developing a on a number of initiatives to accelerate growth comprehensive set of solutions for IP with support from Cinven’s Portfolio team, professionals enabled by technology, and by notably by investing in the CPA Global software expanding internationally. The business has offering, expanding into adjacent services, such invested significantly in software development as technical IP translations and providing an and expanded into information and analytics CEO integrated proposition to cross-sell a full range to support and enhance the core business. Simon Webster of IP solutions. CPA Global has offices across Europe, In early October 2015, Simon Webster, a long- North America and Asia, as well as substantial Cinven representatives serving member of the senior management team, operations in India. Stuart McAlpine was appointed CEO. Anthony Cardona In November 2015, CPA Global completed the strategic acquisition of Innography, a fast- www.cpaglobal.com growing and world-leading provider of patent information and analytics.

54 Cinven Annual Review 2015 Our investments EnServe Group

Business Services Utility and energy outsourcing

Acquired Sales Value creation EnServe Group was acquired in a public-to- Dec 2010 £186m private transaction in December 2010. This was 12 months ending followed by a curbing of capital expenditure by HQ April 2015 (actual) some large utility providers following ownership changes, together with an increasingly UK Employees competitive environment, resulting in margin 1,450 pressure. In addition, the Billing division was (approximate) subject to industry-wide in-sourcing of its services. Cinven’s Sector and Portfolio teams worked to mitigate these factors by introducing operational improvements and best practices in the areas of The business in 2015 procurement and account management. Cinven Following the successful divestiture of Enserve’s also invested in the sales force effectiveness of core infrastructure support services businesses the business’ Energy division, Inenco, to optimise through a series of sales between 2011 and strong growth. 2013, Cinven explored exit options for the remaining group. On the back of a focused EnServe Group has been divested through strategy, successful realisation of cost savings a series of sales to corporate and financial and an improved growth trajectory, Cinven acquirers. In February 2011, EnServe Group completed the sale of the remaining Enserve announced the sale of its Facilities Services business in January 2016, significantly in excess Group business to NBGI Private Equity; in of previous fund valuations. February 2012, EnServe Group announced the sale of its Utility Management Services (UMS) CEO business to BCW Group; in April 2012, EnServe David Cruddace Group announced the sale of its Mechanical and Electrical Training business to Pearson; and in Cinven representative July 2013, EnServe Group announced the sale Thilo Sautter of its Energy division, Inenco Group, which had nearly doubled EBITDA under two and a half years of Cinven ownership. www.enservegroup.com

56 Cinven Annual Review 2015 Our investments Prezioso Linjebygg

Business Services Insulation, scaffolding and surface coating services

Acquired Sales Value creation Cinven has been working with management June 2012 €478m to grow Prezioso’s market share and expand 12 months ending into promising markets such as the North Sea, HQ December 2015 (proforma) both through acquisition and organic growth. In particular, in early 2014 the company acquired France Employees Norwegian O&G services company, Linjebygg (global operations) 5,500 Offshore for NOK 326 million. In addition, the (approximate) company introduced new senior managers and international best practices to build a world-class organisation able to continue delivering double digit growth.

The business in 2015 In the face of a prolonged depressed global oil price, Prezioso Linjebygg (Prezioso) continued to grow profits during 2015. This success was driven by three factors: Prezioso’s defensive model of providing mission critical, non-discretionary asset integrity services for existing facilities; the company along with Cinven’s Portfolio and Sector teams working CEO closely with management to mitigate the impact Olivier Dufour of the global oil price decline on Prezioso’s business; and continuous market share gains Cinven representatives across all geographies and business lines. The Nicolas Paulmier latter includes notably large contract wins with Statoil in Norway, doubling Prezioso’s market Jorge Quemada share; with Total and Chevron in Western Africa; Pierre Estrade and with EDF in France. www.prezioso.fr In May 2016, on the back of strong organic performance, Cinven completed the successful sale of Prezioso to Altrad Group.

58 Cinven Annual Review 2015 Our investments Pronet

Business Services Electronic security and alarm systems

Acquired Sales In addition, during 2015, the company enhanced its management team with the appointments of Aug 2012 $83m a new CFO, HR Director and Sales Director. 12 months ending HQ December 2015 (actual) Value creation Cinven has been collaborating with management Turkey Employees on a number of commercial and operational 1,600 workstreams including the introduction of (approximate) operational best practices, client acquisition and client servicing. The Turkish monitored alarm market has significantly lower market penetration than European averages and is forecast to continue The business in 2015 its significant growth, supported by rising Pronet delivered a resilient performance in 2015, disposable income, urbanisation and changing despite a worsening general environment for attitudes towards crime and security, with consumer-spending, and challenging foreign Pronet driving this growth in penetration. exchange markets that saw local currency Pronet’s business model combines a portfolio depreciation of nearly 30%. Even though Pronet of installed alarm systems generating recurring prices in US dollars, the business continued monthly revenues and a direct sales team driving to increase its subscriber base, revenues and accretive growth. The company has presence EBITDA (in US dollars) year-on-year. throughout Turkey, through its direct sales offices Cinven and management continued to focus as well as a network of dealers. Executive Chairman on improving productivity as well as reducing Alp Saul customer acquisition costs and maintenance overheads. This resulted in an improved Cinven representatives cost structure and margin profile in 2015. The company remains focused on customer Guy Davison profitability, cash generation and net debt Yalin Karadogan reduction. www.pronet.com.tr

60 Cinven Annual Review 2015 Our investments Camaïeu

Consumer Clothing retailer

Acquired Sales Despite this, 2015 saw numerous positive developments at Camaïeu including the May 2007 €781m introduction of a new concept store, with a 12 months ending more modern identity, which will initially be HQ December 2015 (actual) rolled out at seven premises. In addition, the company launched a Polish e-commerce site France Employees to complement its 89 physical stores in Poland. (global operations) 6,000 Also in 2015, Camaïeu launched ‘L’Observatoire (approximate) du-prêt-à-porter’, a survey of French fashion trends and consumer habits, in order to better understand patterns of consumption and meet expectations.

The business in 2015 Value creation Camaïeu confronted a continuing weak Camaïeu has 992 stores, up from 557 at consumer environment in France with a focus acquisition. Geographic exposure has been on operational improvement. This included rebalanced so that in 2015 approximately 35% a series of measures to protect like-for-like of stores were outside of France, compared to sales, and a move towards a more customer- 24% prior to Cinven’s acquisition. centric model by further investment in customer relationship management. Trading in the latter part of the year was challenging, and deteriorated further following CEO the terrorist attacks in Paris, as consumer Elisabeth Cunin confidence fell, and was further exacerbated by record high temperatures seen across Cinven representatives France and much of Europe in December. Xavier Geismar David Giroflier www.camaieu.fr

62 Cinven Annual Review 2015 Our investments Maxeda

Consumer DIY retailer

Acquired Sales Maxeda group. The DIY business is a leading player in the Benelux region and comprises Sept 2004 €1,337m four key brands: Praxis and Formido in the 12 months ending Netherlands and Brico and Plan It in Belgium. HQ December 2015 (actual) The Cinven was attracted to Maxeda because Employees it was a market leader in non-food retailing, Netherlands but was underperforming across a number (Benelux region) 7,000 of metrics. During Cinven’s ownership period, (approximate) retailing best practice was implemented across all of Maxeda’s formats. Value creation initiatives included improving customer service, selected store refurbishments and enhanced sourcing. These resulted in company-wide procurement, The business in 2015 increased Asian sourcing, supported by Cinven’s Maxeda DIY, the final remaining business of an Portfolio team in Asia, and closer co-operation investment that has returned 2.6x cost to-date, between the department stores. completed an ‘amend and extend’ of existing senior debt and a debt-for-equity swap of its subordinated debt in 2015. This resulted in mezzanine lenders taking a controlling position in the business, and Cinven funds only having a nominal remaining stake in the business.

Value creation At the time of acquisition, Maxeda was the CEO largest non-food retailer in the Benelux region, Guy Colleau1 operating across multiple retail segments including department stores, DIY, apparel and 2 consumer electronics. Following a series of Cinven representatives successful, value accretive divestments of retail formats under Cinven’s ownership, the DIY www.maxeda.com division is the last remaining segment of the 1 Joined 1 May 2016 2 Post restructuring, Cinven is no longer represented on the supervisory board of the operating entity.

64 Cinven Annual Review 2015 Our investments Avolon

Financial Services Aircraft leasing

Acquired Sales Value creation Cinven’s Financial Services team identified the May 2010 $360m aircraft leasing market as attractive in the wake 6 months ending of the financial crisis, because of low entry HQ June 2015 (actual) prices to a market with long-term structural growth. During our ownership, the company Ireland Employees expanded into Asian markets, raised new equity (global operations) 55 from the Government of Singapore Investment (approximate) Corporation (GIC) and launched Avolon Capital Partners, a Wells Fargo joint venture to build a US$500 million aircraft portfolio. The company completed a US$333 million equity raise from existing and new investors, The business in 2015 and a US$465 million debt raise from a banking In July 2015, Cinven agreed to sell its remaining consortium. 20% stake in Avolon to a strategic investor, Bohai Leasing, at $31 per share. The sale, Avolon has offices in New York, Hong Kong, which concluded in January 2016, followed Singapore, Dubai and Shanghai. It focuses Avolon’s listing on the New York Stock Exchange on the acquisition of the latest generation of in December 2014 at $20 per share, where narrow-body fuel-efficient aircraft. Cinven chose to sell only 17.5% of its shares. The realisation takes Cinven’s total return on investment to 2.3x cost. CEO Domhnal Slattery Cinven representatives Caspar Berendsen Maxim Crewe www.avolon.aero

66 Cinven Annual Review 2015 Our investments Guardian Financial Services

Financial Services Consolidator of life insurance books

Acquired Market Consistent The Financial Services team identified Guardian Embedded Value as an ideal platform from which to consolidate Nov 2011 the UK closed life insurance sector. In the four €2,600m years of Cinven’s ownership, Guardian became HQ 6 months ending one of the most active consolidators in the UK June 2015 (actual) and Ireland, completing three major acquisitions, UK including £4.9 billion of assets from Phoenix in Employees 2012, £3.5 billion of assets from Allied Irish Bank 190 and a further £1.7 billion of assets from Phoenix, (approximate) both in 2014. The company performed strongly during Cinven’s ownership, led by an exceptional management team brought together by Cinven, and upgraded The business in 2015 asset management processes and customer In November 2015, Cinven agreed the sale service. At the time of completion, the combined of Guardian Financial Services (Guardian) group managed around £17 billion assets, to a strategic acquirer for £1.6 billion. The around 900,000 policies and a healthy balance transaction, which completed in January 2016, sheet to continue its role as industry consolidator. returned more than four times capital invested. Guardian has provided life insurance and Value creation pensions products for nearly 200 years. Cinven’s investment in Guardian was the result Executive Chairman of a thesis developed by our Financial Services team around consolidation in the fragmented Ian Owen closed life assurance sector, also recognising that closed life books enjoy highly visible and Cinven representatives stable long-term cash flows. Peter Catterall Caspar Berendsen Rory Neeson www.guardianfs.co.uk

68 Cinven Annual Review 2015 Our investments Heidelberger Leben Group

Financial Services Life insurance and retirement products

Acquired 2015 Group Cinven believes that there is significant further Traditional consolidation potential in the German market. March 2014 Embedded Value Cinven and management are focused on establishing strong internal M&A capabilities to HQ €944m identify, track and execute further value-accretive At December 2015 buy and build opportunities. Germany (preliminary) Value creation Employees Cinven and management have made good headway on the Value Creation Plan including 420 policy lapse management, group restructuring, (approximate) IT improvements, cost saving opportunities and a revised asset management strategy. The business in 2015 The business has also strengthened its industry Heidelberger Leben Group (HL) has made leading management team including a new a strong start under Cinven’s ownership, CEO, COO, Chief Actuary, Chief Investment with trading performance driven largely by Officer, Chief Information Officer and non- the significant increase of assets under executive appointments. In addition, the business management, together with continued low has continued to build the broader management lapse rates and reduced costs. Significant team, and since June 2014 has appointed a improvements were also made to the Head of Finance, a Head of Tax and a Head Group’s IT infrastructure during the year. of HR. The integration of Skandia Germany has nearly been finalised with the migration of In October 2014, HL acquired Skandia Germany CEO policies, to the new platform, planned for and Austria for €220 million. Heinz-Peter Roß Q3 2016. Cinven’s Financial Services team identified Cinven representatives On the back of this strong trading, HL has HL as highly attractive as it represents an returned c. 0.8x cost to date through a series opportunity to create a life insurance consolidator Caspar Berendsen of realisation events, of which €99 million, or in the attractive German-speaking region, Rory Neeson 0.6x cost, had been returned to the fund by following Cinven’s successful consolidation of year-end. This included a refinancing, the sale the UK sector with Guardian Financial Services. www.heidelberger-leben.com of a derivative portfolio and the sale, agreed in The investment is a strategic (80/20) partnership August, of Skandia Austria to FWU AG for an with Hannover Re, the third largest reinsurer Enterprise Value of €80 million. worldwide.

70 Cinven Annual Review 2015 Our investments Partnership

Financial Services Provider of retirement solutions

Acquired Total Income Value creation Cinven’s Financial Services team identified Aug 2008 £485m Partnership in 2008 as a business with a 12 months ending competitive advantage in the provision of HQ December 2015 (actual) impaired, enhanced and long-term care annuity products for retirees, which provide a higher UK Employees guaranteed rate of income than a standard 510 annuity for people requiring long-term care. (approximate) The company floated in June 2013, in an IPO that was nine times over-subscribed. Cinven realised 1.9x the original cost of investment, while retaining a 49% stake in the business. The business in 2015 Following prolonged outperformance against In August 2015, the Boards of Partnership and its business plan, Partnership was materially Just Retirement, a UK-based peer, announced impacted by unexpected UK budgetary reforms an all-share merger, which became unconditional announced in March 2014, with new business in early 2016 and completed on 4 April 2016. volumes decreasing significantly ahead of the The transaction is expected to realise significant new regulations which came into effect on synergies. Partnership and Just Retirement 5 April 2015. In preparation, Partnership focused raised equity capital amounting in total to on positioning itself to grow in the retail and c. £150 million. As part of this, Cinven invested defined benefit markets in the UK and to expand a further c. €20 million. Following the merger, internationally, backed by a £100 million bond Cinven holds a 19% stake in the merged entity, issue underwritten by Cinven. In May 2015, now called JRP Group. Partnership listed the bonds on the London CEO Stock Exchange at par, converting the private Steve Groves The company believes that the enlarged entity placement into a public bond instrument. will be able to accelerate the existing strategy of leveraging its unique intellectual property to write Cinven representative profitable new business in the UK retail, defined Peter Catterall benefit, US care and South African individual retirement markets. www.partnership.co.uk

72 Cinven Annual Review 2015 Our investments Premium Credit

Financial Services Specialty finance

Acquired Sales The company’s products allow businesses and individuals to spread the cost of their annual Feb 2015 £126m insurance premiums over time. It also provides 12 months ending financing for the payment of annual fees such HQ December 2015 (actual) as professional fees, membership subscriptions, commercial service charges and school fees. UK Employees Premium Credit has approximately two million 370 customers and operates through a network of (approximate) around 4,000 intermediaries. Since completion, Cinven has significantly strengthened the company’s management team, including the appointment of Tom Woolgrove as CEO from January 2016 and Colin Keogh as The business in 2015 Chairman in 2015. Premium Credit enjoyed solid revenue growth in its first year under Cinven’s ownership, driven The company sees opportunity to drive increased by the retail and small-to-mid-sized corporate penetration rates of premium finance, through divisions. EBITDA growth has been strong, better systems integration and processes, driven by net advances (a measure of total with intermediaries. It is currently upgrading customer lending) and revenue growth, its operating systems. coupled with cost base leverage. Supported by Cinven’s Capital Markets

team, the company capitalised on strong Value creation CEO debt market conditions to re-price its Premium Credit is a leading UK provider of financing arrangements in 2015, and has Tom Woolgrove premium finance with a diversified customer made progress in preparation for a public base, broad distribution network and good ABS issuance, including working with rating Cinven representatives reputation for high-quality service provision. Peter Catterall agencies to improve the company’s credit rating. Maxim Crewe Anthony Santospirito www.premiumcredit.co.uk

74 Cinven Annual Review 2015 Our investments AMCo

Healthcare Specialty pharmaceuticals

Acquired Sales Value creation AMCo performed strongly under Cinven’s Aug/Oct £166m ownership, delivering double digit organic 6 months ending EBITDA growth every year since acquisition. 2012 June 2015 (actual) The business itself was created by the simultaneous acquisition and merger of HQ Employees Mercury Pharma and Amdipharm, two UK 370 highly complementary niche generic pharma (global operations) (approximate) companies with diversified product portfolios and, given the age of the products, attractive reimbursement profiles. The transformative merger created a truly global platform on to which Cinven added a further five The business in 2015 bolt-ons, all of which were funded without the AMCo is an international pharmaceutical need for additional equity. company, focused on selling niche generic medicines to patients in more than 100 countries. Together with management, Cinven also Cinven created AMCo through a buy and build executed an international ‘go-direct’ strategy to strategy of seven separate acquisitions in the drive geographic expansion, including deploying niche generic space. AMCo staff on the ground internationally, with support from Cinven’s Portfolio team in Europe In October 2015, Cinven sold AMCo to a and Asia. In addition, 44 new products were CEO strategic acquirer, Concordia Healthcare launched in the three years under Cinven’s Corp. for £2.3 billion, through a combination ownership, with a bolstered pipeline of new John Beighton of cash, common shares of Concordia and a products in development by the time of exit. performance-based earn-out. The investment Cinven representatives has so far yielded cumulative cash proceeds Supraj Rajagopalan of 3.5x the cost of investment (i.e. excluding Alex Leslie any remaining unrealised value). Matthew Norton www.AMColimited.com

76 Cinven Annual Review 2015 Our investments Medpace

Healthcare Contract pharmaceutical research

Acquired Sales Given the company’s strong performance during 2015, it has been able to pay down April 2014 $320m debt and deleverage the business by more 12 months ending than two turns since the business was acquired. HQ December 2015 (actual) Value creation US Employees The company’s growth strategy is focused on (global operations) 2,000 several initiatives across the US, Europe and (approximate) Asia. These include increasing the number of its strategic partnerships with pharma, biotech and medical device companies; improving its sales force effectiveness; and streamlining the project management of clinical trials to improve The business in 2015 efficiencies. Medpace continued to perform well during Medpace is a global contract research 2015 and the business has grown significantly, organisation (CRO) providing management particularly in Europe as it continues to services to research and development internationalise to meet the demands for departments of pharmaceutical, biotech increasing global clinical trials. and medical device clients, to help plan and Given the considerable growth opportunity for oversee their clinical trials. The business model Medpace, 2015 saw a significant expansion of has attractive market growth dynamics and the workforce – with an increase of 35% since Medpace’s particular focus is on small to mid- CEO Cinven acquired the business – predominantly sized pharma and biotech companies who tend Dr. August J. Troendle in clinical operations and administrative to be overlooked by larger CRO providers. functions. The investment was a thesis developed Cinven representatives The company has attracted strong demand by our Healthcare team, which identified Supraj Rajagopalan from pharma and biotech companies for clinical Medpace as one of the most attractive Alex Leslie trials and it has significantly improved its ability companies in the CRO sector. Medpace is Matthew Norton to meet this backlog of demands, with its headquartered in the US and has significant conversion rate improving year-on-year. A rapid European operations. www.medpace.com growth in biotech funding in recent years means this important customer segment has the cash and appetite to use contract research services.

78 Cinven Annual Review 2015 Our investments Spire Healthcare

Healthcare Hospital operator

Acquired Sales Business context Spire Healthcare has been transformed Aug 2007 £450m during Cinven’s period of ownership, with 6 months ending the introduction of a new management team, HQ June 2015 (actual) capital investment in state-of-the-art equipment and an expansion of its hospital portfolio. UK Employees There remains a continued strong pipeline of 10,900 potential new hospital and healthcare facility (approximate) developments and a continued demand from the National Health Service for Spire Healthcare to undertake procedures. Spire Healthcare works with 3,000 healthcare The business in 2015 specialists to deliver personalised care with Cinven sold a 30% stake in Spire Healthcare in payor groups being private medical insurance, June 2015 to Remgro, the major shareholder of self-funded as well as from the National Health Mediclinic, a leading South African-based private Service. hospital group. This was followed shortly after Prior to its flotation, Spire Healthcare was the by the sale of the remaining 8% stake through second largest private hospital group in the an accelerated book-build. This was the last in UK, with 39 acute care hospitals and 13 a series of successful public market selldowns, outpatient clinics. during the year, following the company’s IPO CEO on the London Stock Exchange in July 2014. Cinven elected to retain its full stake at the point Rob Roger of flotation with subsequent sales between 50% and 70% above the IPO issue price. Cinven representatives Simon Rowlands In aggregate, Spire Healthcare generated Supraj Rajagopalan* a return of almost 2x the cost of investment. From April 2015, a long-term agreement www.spirehealthcare.com between Spire Healthcare and BUPA took affect, with a minimum term of four years and * Formerly held board seat with prices agreed for six years.

80 Cinven Annual Review 2015 Our investments Synlab

Healthcare Clinical diagnostic laboratories

Acquired Sales This enabled Cinven to enter into the Labco transaction rapidly and on a bilateral basis in Aug/Oct €1,494m May 2015. Cinven was then able to sign the 12 months ending acquisition of Synlab, from the position of a highly 2015 December 2015 (actual) synergistic ‘trade buyer’ post the Labco acquisition. This combination of sector knowledge and local HQ Employees presence resulted in a very attractive combined Germany 13,000 entry price. The enlarged Group is the only truly (European operations) (approximate) pan-European clinical laboratories business operating across 35 countries with combined revenues of approximately €1.5 billion. Each year, Synlab undertakes more than 400 million diagnostic tests for nearly 50 million patients. The business in 2015 Synlab was created in 2015 following the Value creation transformative merger of Labco and Synlab to Following the acquisitions Cinven’s Healthcare create the European champion in the diagnostics and Portfolio teams worked with Dr Wimmer, the industry. The company is comprised of two CEO and founder of Synlab, and the rest of the separate Cinven acquisitions: that of France- management team to communicate changes to based Labco acquired in August 2015 and stakeholders. This ensured careful planning and Germany’s Synlab acquired in October 2015. integration of the two company’s cultures and operations. By year-end, the merged business These thesis-led investments harnessed Cinven’s was on track to meet or exceed the synergy CEO extensive experience of the diagnostics supply targets in the equity case. Dr. Bartl Wimmer chain, through prior successful investments in Phadia and Sebia, Générale de Santé and Cinven, along with management, has reinvigorated Spire. Cinven’s Healthcare team worked closely M&A activity, given the considerable consolidation Cinven representatives opportunities within the highly fragmented clinical Stuart McAlpine with our French and German Regional teams to develop a consolidation strategy and execute diagnostic laboratory sector, and has a full pipeline Alex Leslie these acquisitions. Together, our Healthcare team of high-quality opportunities at attractive acquisition Pierre Estrade and Regional teams built strong relationships multiples. In parallel, Cinven and management are with the respective management teams and working on a number of initiatives to accelerate www.synlab.com sellers, and engaged in two parallel processes Synlab’s organic growth and win market share, with the aim of bringing the assets together. notably through medical innovation and improved customer service. In February 2016, Novo A/S, the holding company for the Novo Group, invested €215 million into Synlab.

82 Cinven Annual Review 2015 Our investments Avio

Industrials Design and production of propulsion systems for space launchers and satellites

Acquired Sales Value creation In addition to the Space Unit, at the time of Dec 2006 €255m acquisition, Avio was a leader in the design, 12 months ending manufacture and servicing of subsystems HQ December 2015 (actual) and components for commercial and military jet engines, partnering with original equipment Italy Employees manufacturers such as General Electric, (global operations) 800 Rolls-Royce and Pratt & Whitney. Avio also (approximate) developed and supplied jet derivative engines and automation systems for naval and industrial applications and provided military and civil aero engine maintenance, repair and overhaul services. Cinven’s Industrials and Italian teams identified The business in 2015 Avio as an undermanaged opportunity with Following completion of the sale of Avio’s defensive growth qualities due to the diversified Aviation business to GE in August 2013, aerospace group’s exposure to long-term returning 1.9x cost, Cinven retained ownership structural growth in markets such as defence of Avio’s Space Unit (Avio). and space launch. Cinven acquired the business Avio enjoyed double-digit revenue growth outside of an auction process. during 2015 following increased volumes Under Cinven’s ownership, the business focused from the Vega, Ariane and Tactical Propulsion on specific commercial relationships and building programmes, and saw a 33% increase in its profitable Military and Space programmes that order book. offered long-term contracts and operational CEO In April 2015, Avio realised a further improvements. In addition, Cinven supported Giulio Ranzo €122 million, following a refinancing by a Avio’s internationalisation, with two joint ventures group of Italian banks, increasing Cinven’s in China, Xian Aero Engine and Avic Harbin Cinven representatives return beyond 2x cost. As of 31 December Dong’an Engine, both state-controlled leading Simon Rowlands 2015, Cinven retained approximately 55% aerospace businesses. Avio also made an Roberto Italia in Avio. acquisition in Brazil in 2011. Giulio Ranzo, former Head of Business www.avio.com/en Development at Avio Group, rejoined Avio as CEO in October 2015. Cinven continues to focus on optimising the performance and realisation options for the remaining Space business.

84 Cinven Annual Review 2015 Our investments CeramTec

Industrials Manufacturer of high performance ceramics

Acquired Sales Cinven continues to invest in CeramTec’s management team, including the appointment Aug 2013 €501m of Henri Steinmetz as CEO in early 2016 while 12 months ending former CEO, Dr. Zimmermann, transitioned to HQ December 2015 (actual) an advisory role and a position on the company’s German supervisory board. Germany Employees (global operations) 3,600 Value creation (approximate) Under Cinven’s ownership, the Portfolio and Sector teams have collaborated with management to optimise commercial terms within the Medical and Industrial divisions; improve productivity and capital efficiency The business in 2015 throughout the business; refocus the industrials CeramTec delivered resilient revenue and portfolio on the products with the greatest EBITDA growth in 2015, across both its growth potential; and pursue selective Medical and Industrial divisions. add-on opportunities, including the acquisition of DAI Ceramics. During the year, Cinven’s Portfolio team collaborated with CeramTec’s management to Cinven’s Industrials and Healthcare teams implement a number of measures to further grow identified CeramTec as a highly attractive the business. These included the appointment opportunity given its strong presence in of a Head of Medical to develop the medical diverse markets and its exceptionally high CEO division including the promising R&D pipeline; market share globally in critical ceramic hip Henri Steinmetz as well as a project to improve the operational joint prostheses components. In addition, the efficiencies within the Industrials division. company demonstrated strong organic growth potential and a R&D pipeline. In recent years, Cinven representatives In May, CeramTec acquired US-based CeramTec has successfully introduced around Guy Davison DAI Ceramics, which has been successfully 50 new materials and 150 substantially modified Bruno Schick integrated into the broader business. materials to the market. This track record is Pontus Pettersson The acquisition provides CeramTec with set to continue with a number of promising a complementary product portfolio and projects, with attractive return prospects www.ceramtec.com geographic footprint and provides access currently under way. to new end markets, such as aerospace.

86 Cinven Annual Review 2015 Our investments JOST

Industrials Truck component manufacturer

Acquired Sales Value creation JOST is considered the standard-setter in quality, Aug 2008 €669m safety and innovation in the manufacture and 12 months ending assembly of components for the articulated truck HQ December 2015 (actual) and trailer industry. The company demonstrates exceptionally high customer loyalty and brand Germany Employees reputation and has built a global diversified (global operations) 2,900 customer base. The company’s long-term growth is (approximate) underpinned by growing demand for transportation. The unexpected collapse of Lehman Brothers in September 2008 had a material impact on lease financing markets, which are critical for the trucking industry, with the production of trailers falling up to The business in 2015 90%. In response to this extreme scenario, Cinven JOST performed well in 2015. Strong and the JOST management team swiftly performance in its core European market, implemented a series of wide-ranging initiatives excellent growth in both North America and such as a renegotiation of its financing arrangements Asia, and the contribution of recently acquired and review of operational efficiencies. Mercedes Trailer Axles, all contributed to JOST’s strong revenue growth, which was Cinven invested c. €10 million, at preferential also enhanced by positive foreign exchange terms, to protect the company and support movements. The expansion of the business into the smooth operational and financial recovery. North America continues to progress well, with In addition to protecting and preserving value JOST continuing to win further market share in during the downturn, Cinven has made significant CEO the region. progress on its original strategy for JOST. This Lars Brorsen included improvements to the company’s During 2015, JOST’s revenues increased by more operations and financial systems; continuing Cinven representatives than 20% following the acquisition of Mercedes to build JOST’s market position; expanding into Bruno Schick Trailer Axles and EBITDA grew almost 10%. underpenetrated, high growth geographies Jan Schönfeld On the back of this strong performance, Cinven’s including China, India and Eastern Europe; Capital Markets team led a refinancing of the and executing value accretive buy and build transactions. www.jost-world.com business in December to optimise its capital structure with a lower cost of debt; to introduce In December, Cinven completed a refinancing of additional operational flexibility for the business; the business returning 14.5% of cost, increasing and to return capital to investors. During the year, leverage to 3.6x LTM PF EBITDA. Prior to the the integration of Mercedes Trailer Axles also refinancing, the company’s leverage level had continued smoothly. reduced significantly from 10.5x at the end of 2009 to 2x at the end of 2015.

88 Cinven Annual Review 2015 Our investments S LV

Industrials Provider of residential and technical lighting products

Acquired Sales The outlook is positive with continued development and growth potential. May 2011 €177m 12 months ending Value creation HQ December 2015 (proforma) Cinven’s Portfolio team has been working closely with SLV to execute the objectives set Germany Employees out in a Value Creation Plan. These include (global operations) 400 improving SLV’s product development process (approximate) by expanding both the product development and supply chain teams, and optimising the go-to- market time. In 2015, SLV introduced 950 new products compared to 373 in 2014. The business in 2015 SLV enjoyed strong revenue growth during the The company has also implemented significant year, improving its international sales processes, and wide ranging operational improvements and generating double-digit growth within its to its reporting structure controls and systems. subsidiaries. Trading in France, SLV’s second In addition SLV has adopted a more systematic largest market, grew significantly in the second approach – including sharing best practices half of the year, following the implementation and closer partner co-operation – to improve of a number of strategic initiatives. In addition, market penetration in those geographies covered SLV has started to drive growth in Germany, by its partners. improving transparency and augmenting its sales SLV’s diverse portfolio of c. 3,000 value for approach, leading to an increase in sales of 10% money, innovative lighting products is primarily in the fourth quarter. sourced from Asian manufacturing partners. CEO The company also invested in marketing and SLV distributes these products through a wide Robert Fellner-Feldegg personnel in select geographies, as well as in network of electricians, wholesalers, internet IT and supply chain, to position the company shops and other resellers, mostly in Europe. Cinven representatives for sustainable future growth. Bruno Schick Following SLV’s 2014 acquisition of Unex, Thilo Sautter a Swiss provider of LED lighting fixtures, the company acquired its Dutch partner www.slv.de Lagotronics in 2015 for an attractive valuation. This acquisition formed part of the company’s ‘forward integration’ strategy that allows SLV to be closer to its clients and end-markets and to expand its brand reach.

90 Cinven Annual Review 2015 Our investments Tractel

Industrials Manufacturer of working-at-height products

Acquired Sales The acquisition of Tractel completed in October and while it is still early in the life of the Oct 2015 €173m investment, trading performance is positive. 12 months ending HQ December 2015 (actual) During the year, Tractel generated strong revenue growth in North America and Germany. By the Luxembourg Employees end of 2015, Tractel’s order book had reached (global operations) 800 the highest levels in the company’s history. (approximate) Cinven has made good progress implementing the value creation initiatives, which will strengthen Tractel’s geographical offering and new product lines.

The business in 2015 Value creation Tractel was acquired by Cinven in October, Cinven and management are focused on as a thesis-led investment developed by our growing Tractel’s business organically, and Industrials team around protection equipment, recently launched a significant sales force and executed off-market by our local team in effectiveness project, aimed at increasing France, which pre-empted a sales process. penetration in business segments that are sold through distributors. The business has strong cash generation and a positive outlook for its cyclical end-markets, Tractel is the leading player in the global market as well as the potential to expand through for working-at-height equipment. Established in CEO strategic acquisitions. Providers of working-at- 1941, Tractel is headquartered in Luxembourg Denis Pradon height equipment, such as Tractel, enjoy high and operates across Europe, North America and barriers to entry, while delivering mission critical Asia with c. 800 employees, 8,000 distributors Cinven representatives equipment to end-customers. The Cinven team and distribution in more than 120 countries. Xavier Geismar developed a close relationship with management Tractel designs, develops and distributes lifting over the 18 months prior to the transaction, and handling equipment, load measurement Pontus Pettersson allowing Cinven to pre-empt the transaction, equipment, suspended platforms and height Julien Lammoglia avoiding an auction process. safety equipment. www.tractel.com Cinven was well positioned to partner with Cinven and management are also actively Tractel’s management team given its track record working on potential value accretive add-on in France and its capability of creating a player of acquisition opportunities. larger scale in more diverse geographies.

92 Cinven Annual Review 2015 Our investments HEG

TMT Hosting and domain services

Acquired Sales Value creation The original acquisition of Host Europe Group Aug 2013 €280m (subsequently rebranded HEG) was the first 12 months ending acquisition of an overall consolidation strategy. HQ December 2015 (proforma) This was originated by Cinven’s TMT team that had identified hosting as an attractive UK Employees and fragmented market. (European operations) 1,225 Cinven has worked closely with management (approximate) on its buy and build strategy, evaluating a number of add-on acquisition targets and executing four significant add-ons to date, including German mass hosting provider Telefonica The business in 2015 Online Services, German mass hosting provider HEG continued its strong trajectory in Domainfactory, German managed hosting 2015, with all core divisions delivering provider intergenia, and UK mass hosting growth. Managed Hosting and Mass Hosting provider Paragon. exhibited particularly strong performance. The acquisition of intergenia completed in Cinven has also helped reshape HEG’s January, with anticipated synergies performing organisation to ensure that it functions as an ahead of initial expectations. integrated group with clear organisational focus on the core business divisions Mass Hosting and In October, HEG acquired Paragon Internet Managed Hosting. Cinven has also enhanced Group, one of the UK’s fastest growing the management team, including the promotion CEO hosting companies, for an enterprise value of the COO Patrick Pulvermüller to CEO, Patrick Pulvermüller of €21 million. Paragon Internet Group has as well as appointing new divisional CEOs generated strong organic growth, and today for both Mass Hosting and Managed Hosting. Cinven representatives hosts more than 1 million websites, for more than 120,000 customers. Today, HEG offers its customers an end-to-end David Barker product suite including domain registration, Thomas Railhac Cinven’s Portfolio team is involved with a number application hosting, cloud hosting and managed Florian Luther of initiatives, including the integration of add-on hosting. Most of the company’s revenues are acquisitions, positioning and re-branding of the generated in Germany and the UK, the two www.heg.com core brands, and sales force and marketing largest markets in Europe for internet domains effectiveness. Cinven and management continue and hosting services. to evaluate a number of further potential add- on acquisitions. The outlook for the business remains positive.

94 Cinven Annual Review 2015 Our investments Northgate Public Services

TMT Software outsourcing and IT services

Acquired Sales Value creation With the help of Cinven’s Portfolio team, Dec 2014 £182m the carve-out of NPS from its former parent 12 months ending company is now complete. The Portfolio team HQ December 2015 (actual) has also been implementing Cinven’s Value Creation Plan, which is focused on identifying UK Employees opportunities for cross-selling products to (global operations) 2,300 existing customers and internationalising (approximate) products such as its social housing and eligibility software products; as well as building on its existing presence in Canada and Australia. During the year, NPS has further developed its comprehensive customer monitoring system, The business in 2015 which will allow the company to improve Northgate Public Services’ (NPS) police customer engagement and implement best business had a positive year, with Athena, a UK practices, particularly in the Local Government national police collaboration software platform, and social housing markets. Cinven and launched in March, demonstrating good management are also targeting potential value growth with strong feedback from local police accretive add-on acquisition opportunities. forces. Athena is focused on the automation of police operations, increasing collaboration Founded in 1969, NPS was a division of between police forces and managing core Northgate Information Services prior to Cinven’s police investigation processes. It offers the investment. NPS’ customers include more than most advanced collaboration platform in the 400 local authorities; regional police forces; CEO UK, allowing different police forces to access central government agencies such as NHS David Meaden each other’s records and communicate more Trusts, the Department for Transport and the effectively. Other business divisions, such as Home Office; and social housing providers. Cinven representatives healthcare market and social housing were David Barker more subdued during the year. Chris Good www.northgate-ispublicservices.com

96 Cinven Annual Review 2015 Our investments Numericable Group / Altice

TMT Cable operator

Acquired Sales (together renamed ‘Numericable’), in March March 2005/ 2005 for €528 million, with Cinven taking €11,000m a 70% stake. This was followed by the November 2005/ 12 months ending acquisition of Altice One, in November 2005, September 2007 December 2015 (audited) for €525 million; and Noos-UPC, acquired in July 2006 for €1.2 billion. In addition, Employees HQ Completel, a B2B provider, was acquired in 14,500 September 2007 for €788 million, and was France (approximate) held as a standalone investment until just prior to Numericable’s IPO. Cinven introduced a world-class management team capable of leading market consolidation while implementing core operational The business in 2015 improvements. The company invested heavily 2015 marked the final full year of Cinven’s in its deep fibre network to drive growth and ownership of Numericable Group / Altice increase the penetration of digital television, (Numericable), the total proceeds of which broadband and telephony among existing reached €2.2 billion post year-end. Cinven sold subscribers. down its final stake in March 2016, culminating in a 159% internal rate of return over an 11 year In March 2008, Cinven and Altice sold a 37.8% holding period and returning 4.7x cost. stake to Carlyle.

In November 2013, the company floated on Value creation CEO (Altice) the NYSE Euronext Paris stock exchange, Cinven’s investment in Numericable following which Cinven divested its stake Dexter Goei fundamentally reshaped the industrial landscape through incremental sell-downs, including of the French cable market. The TMT team a conversion of all Numericable shares for Cinven representatives* identified the opportunity to invest in French Altice shares. Nicolas Paulmier cable assets, which were undermanaged, Thomas Railhac operating below industry benchmarks and Cinven also championed the merger between fragmented. Numericable and SFR, which was initiated in 2012 and subsequently completed in 2014, www.altice.net Cinven’s investment strategy was to consolidate creating the largest business-to-consumer * Formerly held board seats the market while investing in the network to fixed fibre broadband operator in France. drive growth and increase the penetration of consumer entertainment packages. Today, the business has an enterprise value of around €30 billion and is the leading alternative Numericable was created by the acquisitions telecom operator in France. and subsequent merger of the telecom assets of France Télécom, Canal+ (Vivendi) and TDF

98 Cinven Annual Review 2015 Our investments Ufinet

TMT Fibre operator

Acquired Sales Value creation Following the carve-out of Ufinet from a Spanish June 2014 €14 9m utility provider to create a standalone entity, the 12 months ending company has developed ‘lit’ services in cities, to HQ December 2015 (actual) provide wholesale ethernet connectivity in Spain and Latin America. It has also undertaken a review Spain Employees of its commercial effectiveness, including the size (global operations) 260 of the sales force, its incentive systems, pricing (approximate) policies, and payback and return criteria. To support future growth, the business has expanded its network deployment, including increasing the number of buildings, data centres, and mobile towers connected to its network The business in 2015 and entering adjacent countries. Ufinet performed strongly in 2015, with revenue growth driven by high demand for transmission In addition, Cinven has strengthened the services in Latin America – in particular Panama, management team, with the appointment Colombia and Costa Rica – and underpinned of a new CFO, a new Head of Corporate by resilient trading in Spain. Ufinet achieved a Development, and José Antonio Tazón, the record level of new sales 2015. former CEO of Amadeus, a former Cinven investment, appointed as Chairman. Cinven and management put in place a systematic buy and build process and function, Cinven’s TMT team identified the fibre optic resulting in the first add-on acquisition in the industry as attractive, drawing on knowledge CEO company’s history, of Reico, a telecoms provider from previous investments in fixed line telecoms Iñigo García del Cerro Prieto in Costa Rica. and web-hosting. In particular, Ufinet benefits from strong structural growth, as markets develop Since then, Ufinet has also acquired the fibre in Latin America and demand for high speed Cinven representatives network of Horarada, a Spanish regional fibre broadband increases in Spain. Ufinet has a unique Jorge Quemada operator. network amounting to approximately 46,000 Thomas Railhac kilometres of fibre cable, and high barriers to entry. www.ufinet.com

100 Cinven Annual Review 2015 Our investments Visma

TMT Business services software

Acquired Sales Each of the acquisitions has served to strengthen Visma’s presence in specific Aug 2014 €932m geographic or product segments. For example, 12 months ending Visma acquired the leading Danish SaaS HQ December 2015 (actual) accounting software business, e-conomic, a large acquisition currently on track to meet or Norway Employees exceed the synergy targets, along with Danish (Nordic region) 7,000 SME payroll software company, PBJ. Visma also (approximate) acquired a leading Swedish SaaS SME software company, SpeedLedger, further strengthening Visma’s leading position in the smaller business accounting software market in Sweden.

The business in 2015 Value creation Visma had a strong year, with revenue growth Visma delivers enterprise resource planning driven by Visma’s core software divisions and software and services, including accounting, the positive impact of add-on acquisitions. tax and payroll applications and services to more than 500,000 smaller companies, The company’s SME and business process retailers and local authorities across the outsourcing divisions performed particularly Nordic and Baltic regions. well towards year-end with ‘software-as-a- service’ (SaaS) products continuing to be the Cinven has made good progress with strongest growth driver at Visma. In addition, management and fellow shareholders to the company’s EBITDA grew organically, capitalise on the significant growth opportunity CEO despite materially increased investment arising from the transition to SaaS and to Øystein Moan into Visma’s sales, marketing and R&D. capitalise on the opportunity for further up- selling and cross-selling of Visma’s products Building on its long and proven track record and services. This has been helped by the Cinven representatives of value-accretive M&A in the Nordics, Visma development of a proprietary internal database David Barker continued to consolidate the market, with which aggregates all customer data across Chris Good seven add-on acquisitions completed during business units. the fourth quarter alone. Visma has a strong www.visma.com forward-looking buy and build pipeline for 2016.

102 Cinven Annual Review 2015 Governance The Boards of the Guernsey Managers

Risk Governance of control Portfolio Cinven is an independent group, wholly owned for the Cinven framework and managment of Funds mangement risk the Cinven the benefit of its Partners. It is exclusively focused of the Cinven Funds on delivering returns to its fund investors. Funds Directors: Robin Hall, Brian Linden, Hayley Tanguy, John Boothman, Rupert Dorey and William Scott

Partner Group Cinven Partners LLP

The Fourth Cinven Fund is managed by Cinven Cinven Partners LLP advises the Guernsey Executive Committee Limited and the Fifth Cinven Fund by Cinven Managers and its Executive Committee reports (Meets monthly and reports to the full Partner Group at its quarterly meeting) Capital Management (V) General Partner Limited to the Cinven Partners. Cinven’s Partners (the ‘Guernsey Managers’). The Boards of the meet formally as the entire Partner Group Sets the strategic Control of Manages Management of Responsible for Guernsey Managers supervise the governance on a quarterly basis. Non-fund management direction and financial regulatory issues Cinven’s human risk management and risk control framework of the Cinven Funds. responsibilities are delegated to the Managing policy of the firm management and compliance resources Partner and three specialist committees in a well-proven and successful governance system. Members: Hugh Langmuir, Stuart McAlpine, Alexandra Hess, Caspar Berendsen, The three committees oversee resources, David Barker, Nicolas Paulmier, Peter Catterall and Supraj Rajagopalan investment recommendations, portfolio company development and exit recommendations, as Investment Committee* shown on the right. (Meets at critical milestones of investment transactions)

Reviews Makes Examines investment Reviews sector the Monitors proposed Considers offer recommendations and business development of process and transaction price ranges to the Managers issues investment cases transaction costs at all stages structures of the Cinven Funds

Members: Hugh Langmuir, Stuart McAlpine, David Barker, Nicolas Paulmier and Peter Catterall, augmented by other senior Partners depending on relevant experience.

Portfolio Review Committee* (Meets quarterly and at critical milestones)

Ensures Tracks the that each Makes Facilitates Advises the progress of portfolio company has divestment sharing of best Managers of the each portfolio the management team recommendations practice across development of company and Cinven resources that to the Managers portfolio companies, each of the against the it needs in order to of the Cinven including ESG Cinven Funds strategic plan improve operations Funds and create value

Members: Hugh Langmuir, Stuart McAlpine, Caspar Berendsen, Matthew Sabben-Clare and Peter Catterall

* The Investment and Portfolio Review Committees, of the Cinven advisory entities, make recommendations to the Boards of the Guernsey Managers. Based on the recommendations, the Boards of the Guernsey Managers make investment and divestment decisions relating to the relevant Cinven Fund.

104 Cinven Annual Review 2015 Governance continued

The Executive Committee* The Investment Committee* 1  2 3 The Executive Committee sets the strategic The Investment Committee makes investment direction and policy of the firm, and is responsible recommendations to the Managers. In practice, for the management of resources and risk and this involves reviewing sectors, business cases, regulatory compliance. The Committee meets transaction structures, offer prices and monthly and reports to the full Partner Group transaction costs. The Investment Committee of the Cinven Group. also advises the Managers on each fund’s overall sector composition and diversification and it 4 5 6 Hugh Langmuir 1 David Barker 5 meets at critical milestones relating to investment Executive Chairman Partner transactions. Stuart McAlpine 2 Nicolas Paulmier 7 Managing Partner Partner Alexandra Hess 3 Peter Catterall 8 Partner Partner 1 7 4 9 Hugh Langmuir Nicolas Paulmier Caspar Berendsen Supraj Rajagopalan Executive Chairman Partner Partner Partner Stuart McAlpine 2 Peter Catterall 8 Managing Partner Partner 7 8 9 David Barker 5 Partner

Portfolio Review Committee* The Portfolio Review Committee monitors and advises the Managers on the development of portfolio companies, ensuring each has the management capability and resources to generate value. ESG considerations are regularly reviewed items and the Committee also facilitates the sharing of best practices across the portfolio companies and makes divestment recommendations to, and subject to the approval of, the Managers. It meets quarterly and in practice more often.

Hugh Langmuir 1 Matthew Sabben-Clare 6 Executive Chairman Partner Stuart McAlpine 2 Peter Catterall 8 Managing Partner Partner Caspar Berendsen 4 Partner

* As at 1 January 2016 106 Cinven Annual Review 2015 Philanthropy

The Cinven Foundation is Cinven’s vehicle for charitable Impetus-PEF Place2Be The Cinven Foundation makes an annual The Cinven Foundation has supported Impetus- giving. Since 2007, it has provided consistent and donation to Impetus – The Private Equity PEF’s £1.75 million commitment to fund structured support to initiatives that are important to Foundation (PEF), of which Cinven is a Place2Be’s rollout of secondary school-based staff members. In addition, it offers a matched donation member. Impetus-PEF raises significant sums counselling services, in order to reach some from the private equity industry and its business 64,000 children in deprived parts of the UK. policy for individuals’ sponsorship efforts. partners to support charities that help young Its specialist teams of clinical staff and skilled During 2015, The Cinven Foundation continued its people to succeed. volunteers provide one-to-one counselling and group work for vulnerable children, a drop-in www.impetus-pef.org.uk support of several charities and provided contributions to service, practical advice and support for parents, carers and teachers. new initiatives. Charities that received support include: ThinkForward ThinkForward, an initiative developed by www.place2be.org.uk venture philanthropy organisation Impetus-PEF, runs early intervention mentoring schemes to Into University enhance the prospects of disadvantaged young The Cinven Foundation continues to invest people. (See case study pages 109 and 110). in IntoUniversity’s £1 million national rollout programme of local learning centres, which www.think-forward.org.uk support young people from disadvantaged backgrounds to attain either a university place 2nd Chance or other chosen aspirations. IntoUniversity In 2015, The Cinven Foundation made a two- is currently in the second year of a five-year year funding commitment to 2nd Chance, a business plan to reach 23,000 young people specialist education-to-employment charity by 2017. founded by former Cinven Partner Brian Linden. 2nd Chance runs a six-month career www.intouniversity.org preparation course to support trainees to secure functional skills qualifications in English, School Home Support Maths and ICT. Children with serious disadvantage at home are more likely to be absent from school and www.2ndchancelondon.org.uk have poor employment prospects. School Home Support (SHS) is a charity that combines specialist support and emotional and practical advice to vulnerable children in order to help overcome barriers that are preventing them from learning. In 2015, The Cinven Foundation provided financial support for the charity for the seventh consecutive year. www.schoolhomesupport.org.uk

108 Cinven Annual Review 2015 Philanthropy continued Charity in focus

As part of our engagement with Impetus – The Private Equity Foundation, we have provided long-standing support for ThinkForward, which provides ‘super-coaches’ to vulnerable teenagers, in order to increase their education, employment and life prospects. Around a fifth of Millennium babies will leave school with no job or university place, according to ThinkForward, which sees the problem as structural rather than cyclical.

During 2015, The Cinven Foundation In addition, Cinven has hosted two Careers Days continued its support with a substantial funding at our London offices for young people on the commitment to help launch ThinkForward’s ThinkForward scheme, offering a first experience new Apprentice Mentor scheme. The donation of office life, as well as some practical guidance directly pays for two Youth Support Mentors, around job applications in a Careers Carousel Asiah Dhami and Chloe Thorogood, who and a CV-writing workshop. work four days a week alongside the charity’s Coaching and mentor-led engagement has been professional coaches, helping to contact young found to result in an 85% improvement in school people on the programme, and at the same attendance and 95% improvement in behaviour. time studying for a Business Administration There are more than a thousand young people Qualification Level 2. The charity has found that on the scheme, and 2015 saw the graduation many young people are more responsive when of the charity’s first class of 350 teenagers. approached by a peer of a similar age who has been in similar circumstances.

11 0 Cinven Annual Review 2015 Contacts

UK UK Germany Luxembourg Cinven Limited Registered office Cinven International Ltd Cinven GmbH Cinven Luxembourg S.à r.l Warwick Court, Paternoster Square Registered office Main Tower, Neue Mainzer, Strasse 52 Ballade B2 Building, 4, rue Albert Borschette London EC4M 7AG 1 Silk Street, London EC2Y 8HQ 60311 Frankfurt am Main L-1246 Luxembourg

UK Channel Islands Tel +49 (0)69 90027-0 Tel +352 2609 5200 Cinven Partners LLP Cinven Limited Fax +49 (0)69 90027-100 Fax +352 2609 5230 Warwick Court, Paternoster Square East Wing, Trafalgar Court, Les Banques London EC4M 7AG St Peter Port, Guernsey GY1 3PP France Hong Kong Cinven SA Cinven HK Limited Tel +44 (0)20 7661 3333 Tel +44 (0)1481 749 705 4 square Edouard VII, 75009 Paris Suite 2910-11, Two International Fax +44 (0)20 7661 3888 Fax +44 (0)1481 749 749 Finance Centre, 8 Finance Street Tel +33 (0)1 44 71 44 44 Central Hong Kong UK Channel Islands Fax +33 (0)1 44 71 44 99 Cinven International Ltd Cinven Capital Management (V) Tel +852 3665 2880 Warwick Court, Paternoster Square General Partner Limited Spain Fax +852 3665 2980 London EC4M 7AG East Wing, Trafalgar Court, Les Banques Cinven Spain, S.L.U. St Peter Port, Guernsey GY1 3PP Calle del Pinar, 5º Derecha, 28006 Madrid New York Tel +44 (0)20 7661 3333 Cinven, Inc Fax +44 (0)20 7661 3888 Tel +44 (0)1481 749 705 Tel +34 91 353 49 20 510 Madison Avenue, New York, NY 10022 Fax +44 (0)1481 749 749 Fax +34 91 353 49 32 Tel +1 212 710 4334 Italy Cinven S.r.l. Via Manzoni, 30, 20121 Milano

Tel +39 (0)2 3211 1700 Fax +39 (0)2 3211 1800

‘Cinven’ means, as the context requires, Cinven Group Limited, Cinven Partners LLP, Cinven (Luxco1) S.A., Cinven Limited, Cinven Capital Management (V) General Partner Limited and their respective Associates (as defined in the Companies Act 2006) and/or funds managed or advised by any of the foregoing.

112 Cinven Annual Review 2015