REALIZING POTENTIAL

GLOBAL HIGHLIGHTS REVIEW 2013/14 CONTENTS

01 Introduction HOW WE PERFORMED 02 Our year in numbers 04 Message from our partners 06 Business review 08 Sector focus: Business and Financial Services 09  Case studies: InverCap Holdings and Vantiv 10   Sector focus: Healthcare 11  Case studies: American Heart of (AHP) and Mediq 12   Sector focus: Industrial 13  Case studies: Ocensa and Oxea 14  Sector focus: , Consumer and Leisure 15 Case studies: The Coffee Bean & Tea Leaf and DOUGLAS Holding 16  Sector focus: Technology, Media and Telecoms (TMT) 17  Case studies: KMD and P2 Energy Solutions 18 Portfolio company listing 19  Advent investing in communities: CARE ABOUT US 20 Advent at a glance 22 Environment, social and governance 24 The partnership 25 Advent offices

Important Notice All data supplied is as of March 31, 2014 unless otherwise stated. Figures with a $ are in US dollars. NOT AN OFFER These materials are not an offer to sell any securities or a solicitation of an offer to buy any securities. Any offer or solicitation relating to the securities of one or more investment funds (the “Advent Funds”) managed or advised by Advent International Corporation (“Advent International”) may only be made by delivery of a Private Placement Memorandum of such Advent Fund and only where permitted by law. PAST PERFORMANCE Past performance is not indicative of future performance, and there can be no assurance that the Advent Funds will achieve comparable results in the future. PROJECTIONS AND FUTURE PERFORMANCE These materials may include information about prior performance and projections of anticipated future performance or results of one or more Advent Funds (including, without limitation, one or more investments made by the Advent Funds) and other forward-looking statements. These projections and forward-looking statements are based on expectations, beliefs, assumptions, estimates and projections about market conditions as well as the anticipated performance of certain investments (including, without limitation, certain investments in portfolio companies that have been or are expected to be made by the Advent Funds). The projections and forward-looking statements included herein, or otherwise made orally or in writing from time to time, are not guarantees of future performance and involve certain risks, uncertainties and assumptions that are difficult to predict as well as factors that are beyond any Advent Entity’s control. There will be no updates made to any projections or forward-looking statements to reflect changes in the underlying assumptions, new information, future events or other changes. Accordingly, existing and potential investors should not rely on projections or forward-looking statements in making investment decisions. ACCURACY These materials have not been audited or verified by any third party and are subject to change at any time without notice. Certain information contained herein was based on or obtained or derived from data published or prepared by other parties, including, without limitation, personnel of Advent Fund portfolio companies (“Third-Party Information”). While such sources are believed to be reliable, none of the Advent Entities or any of their respective directors, officers, employees, partners, shareholders or agents (each, an “Advent Party”) assumes any responsibility for the accuracy of any Third-Party Information. No Advent Party makes any representation or warranty, express or implied, as to the accuracy or completeness of any Third-Party Information or any opinions contained herein. No Advent Party shall have any liability to any recipient of these materials or any other person relating to or resulting from the use of or reliance on any such information contained herein or any errors therein or omissions therefrom. THIRD-PARTY TRADE NAMES These materials may contain trade names, trademarks or service marks of other companies. Advent International does not intend the use or display of other parties’ trade names, trademarks or service marks to imply a relationship with, or endorsement or sponsorship of, these other parties. REALIZING POTENTIAL

We commit a high level of resources to help our portfolio companies grow. Leveraging the expertise we have developed in our core sectors, we work closely with management teams to find innovative ways to turn the potential within each business into sustainable earnings growth. OUR YEAR IN NUMBERS

In this our 30th year of investing, we continue to focus on the sectors we know well and invest in companies where we see opportunities for meaningful change and improvement. Our in-depth industry knowledge means we are often early to spot potential and are well-resourced to help our businesses achieve their goals.

02 HOW WE PERFORMED OUR YEAR IN NUMBERS Our experience, global reach and collaborative culture are important assets in helping management teams realize the potential in their businesses. We work in partnership with them to achieve sustainable growth.

$2.2BN* 16* INVESTED NEW AND FOLLOW-ON INVESTMENTS ** $7.8BN * REALIZED 22 FULL AND PARTIAL † REALIZATIONS $32.0BN *BETWEEN JANUARY 1 AND DECEMBER 31, 2013

*  NEW AND FOLLOW-ON INVESTMENTS BETWEEN JANUARY 1 AND DECEMBER 31, 2013 ** FULL AND PARTIAL REALIZATIONS BETWEEN JANUARY 1 AND DECEMBER 31, 2013 † AS OF DECEMBER 31, 2013

HOW WE PERFORMED OUR YEAR IN NUMBERS 03 MESSAGE FROM Realizing value is only one objective. We also judge our performance on OUR PARTNERS the lasting benefits we bring to the businesses in which we invest.

2013 proved to be a year of both record realizations and renewed challenges. Favorable refinancing and equity markets drove outstanding exit conditions. The same overheated debt markets, however, increased deal pricing across the globe, making investment opportunities harder to find. Continued soft growth across Europe and an uneven macro environment in emerging markets also tested the agility of our organization. Nevertheless, by maintaining a focus on our core industry sectors and regions, our team made headway on new deals and supported our portfolio companies in strengthening and expanding their businesses. Capturing the value that we have created is a key goal in the development of the companies that we own, and in 2013 we realized a record $7.8 billion in proceeds from the sale or refinancing of numerous businesses. The foundation for much of this achievement lay in the earlier IPOs and continued strong financial performance of Vantiv, Five Below, Kroton, International Meal Company (IMC) and Dufry, demonstrating our commitment to creating sustainable businesses for the long term. The perseverance of our deal professionals and portfolio company management teams was also rewarded with several significant sales of

04 HOW WE PERFORMED MESSAGE FROM OUR PARTNERS investments to strategic and financial buyers. people, refining systems and redeploying The three largest of these transactions were resources where they were most needed. ABC Supply, Domestic & General and Oxea. To that end, we further strengthened the teams in our Shanghai and Bogotá offices Despite the difficult investment environment, and continued to roll out our portfolio we completed six interesting new deals in our support program by adding professionals to core sectors in North America, Europe and this global team. We also hired a dedicated Latin America last year and closed or signed individual to support our capital markets three further transactions in the first quarter capabilities. At year end, we promoted 18 of 2014 (see list on p.7). We also worked hard members of the global deal team, including on refining our sector strategies, adding new three to Managing Partner and three to sub-sectors, building deal pipelines and Managing Director. Our cultivating our top company prospects; all of Program continued to evolve in 2013 with the which should yield results in the future even addition of some highly experienced former if market conditions remain challenging. CEOs and increasing operating partner In our existing portfolio, our deal teams and involvement in our deal sourcing. Portfolio Support Group continued to work Finally, in 2013 we were proud to receive closely with our management teams and several industry awards recognizing the operating partners to improve operations professionalism, talent and achievements and drive top-line growth. Additionally, taking of our team. We would like to thank our advantage of the favorable debt markets, a portfolio company management teams, number of our portfolio companies refinanced operating partners, investors, intermediaries their debt, allowing them to reduce costs, and advisors for their support and improve terms, fund acquisitions and pay commitment to the high standards that dividends to shareholders. All of these efforts have allowed us to gain this recognition enabled the businesses in our portfolio to and look forward to our continued achieve average revenue and earnings growth partnership in the years ahead. of 9% and 11%, respectively, in 2013 despite the challenging macro conditions. THE ADVENT PARTNERS, MARCH 2014 Throughout the year, we continued to strive to improve our own organization, adding

HOW WE PERFORMED MESSAGE FROM OUR PARTNERS 05 BUSINESS REVIEW

Through persistent focus on growth and operational improvement initiatives, we seek to partner with management teams to increase earnings and build businesses with long-term sustainable value.

OPERATING HIGHLIGHTS data solutions to the oil and gas industry. 2013 was a successful year for Advent in The company is well-positioned to expand its terms of capturing the value in our portfolio existing customer base, further develop companies. Capitalizing on strong exit international operations and add new products. conditions and favorable debt markets globally, The Coffee Bean & Tea Leaf is an independent we realized $7.8 billion in proceeds, mainly specialty coffee and tea retailer with over 900 through the sale of shares in post-IPO stores in nearly 30 countries. We see potential companies, sale of businesses to strategic and to create value by improving the operations of financial buyers and refinancing of portfolio this formerly family-run business, accelerating company debt. new store openings and continuing to expand internationally, particularly in Asia. A number of our companies completed recapitalizations during the year, taking Notable realizations in North America last year advantage of the debt markets to reduce the included the further sale of shares in two public cost of leverage, change structures, improve companies, payment processor Vantiv and value terms and raise capital for acquisitions. In most retailer Five Below. We subsequently sold our cases, the leverage levels were prudently raised remaining stake in Vantiv in March 2014 but still only to near the original deal multiples. own shares in Five Below to take advantage of potential future growth. Additionally, the merger Following through on the value creation plans of Bradco Supply and ABC Supply in 2010 we established with management, our portfolio created America’s largest roofing products companies made good progress during the year, distributor and enabled significant earnings achieving earnings growth of 11% and revenue improvements, allowing us to sell our minority growth of 9% on average. The majority of stake in the business to the majority shareholder earnings improvements were driven by revenue in 2013. growth initiatives. So far in 2014, we have agreed to sell eLearning Within our industry sectors, we completed six content provider Skillsoft to another private new investments in 2013 and signed or closed equity firm. The sale follows several years of three more deals in the first quarter of 2014, significant growth driven by new product despite challenging market conditions. We also development, international sales and acquisitions. identified some interesting new areas for our sector and regional deal sourcing activities. EUROPE Investment conditions in Europe remained In a continued drive to improve our own firm, challenging in 2013 with slow growth and a lack we invested significantly in people, financial, of primary deal flow. Despite this environment, compliance and administrative operations and we completed two new acquisitions in the region launched a number of initiatives to improve last year and closed or signed two further deals communications with our investors. We in early 2014. With Mediq, a -based continued to roll out our portfolio support international provider of medical products, program, establishing 19 program management pharmaceuticals and associated care, our goal is offices at portfolio companies to facilitate best to further strengthen the company’s position in practices and support the implementation of the Dutch pharmacy market and expand the value creation plans. international homecare division. The transaction NORTH AMERICA marks the second straight year in which Advent While the overheated debt markets pushed up completed the largest public-to-private deal in deal pricing in North America last year, slowing Europe. -headquartered Allnex, a investment activity across the industry, we were carve-out from Cytec Industries, develops, able to complete two new investments. P2 produces and sells synthetic resins for the Energy Solutions provides critical software and production of paints and coatings as well as

06 HOW WE PERFORMED BUSINESS REVIEW printing inks. The deal was a joint effort between and the Atlantic Coast, moving approximately Advent’s Frankfurt and New York teams. We are 60% of the nation’s crude oil production. working to improve margins through the The transaction, co-led by Advent’s Bogotá carve-out effect, widen the company’s global and teams, is our fourth deal in the footprint and continue its push towards energy sector in the last three years and first higher-value-added products. mid-stream oil and gas investment. Alianza Fiduciaria, Colombia’s largest independent In March 2014, we completed the acquisition of trust and custody services provider and asset UNIT4, a leading global mid-market enterprise manager, serves underpenetrated markets resource planning software vendor currently that are growing fast as they catch up with NEW INVESTMENTS listed on Euronext Amsterdam. The same month, global and regional norms. Our local team Alianza Fiduciaria we also announced that we had agreed to Allnex was able to leverage the global work in asset acquire Nets in partnership with ATP and Bain The Coffee Bean & Tea Leaf management completed by Advent’s financial Capital. Nets, headquartered in Copenhagen is Dudalina services team to help secure this transaction a leading Northern European provider of Mediq which closed in early 2014. payments, information and digital identity Nets* solutions. In Brazil, we teamed up with another financial Ocensa P2 Energy Solutions sponsor to acquire Dudalina, one of the We fully realized our investments in six UNIT4 country’s leading manufacturers and retailers companies in Europe over the last 15 months. FULL EXITS of high-end apparel. We are working with In December we sold Domestic & General, a ABC Supply management to expand the company’s provider of extended warranty plans, to another Atmosfera retail operations, drawing on our extensive private equity firm, after working with the AVIP experience in this sector. management team to develop this UK business BondDesk into Europe’s market leader in the sector. In terms of exit activity, we fully realized our CAMS Deutek The same month, we completed the sale of positions in four companies over the past 15 Domestic & General -based Oxea, the global market leader months: global travel retailer Dufry and Dufry in oxo chemicals and derivatives, to the Oman education company Kroton (both public), Isida Oil Company, following successful efforts to through block trades, and specialized financial Kroton Educacional diversify the company’s activities, increase services provider Monte de México and industrial Monte de México capacity and expand internationally. We also laundry company Atmosfera, through trade Oxea completed the sale of Deutek, ’s sales. We also sold a portion of our shares in the RWE Solutions (Nukem) largest manufacturer of decorative paints and publicly listed restaurant chain International Skillsoft* coatings to Axxess Capital, and in early 2014 Meal Company (IMC) in a block trade. Vantiv we sold Isida, one of Ukraine’s leading medical PARTIAL EXITS/ ASIA PACIFIC treatment and healthcare providers. Since our REALIZATIONS 2013 saw the formal opening of Advent’s investment in 2011, we supported Isida in adding Bojangles’ Shanghai office as a base in Greater China. Charlotte Russe new specialities, repositioning the business to The team there has already provided important DFS a new customer segment and opening new support to the wider Advent portfolio, assisting Equiniti Group outpatient clinics. two of our new global deals, and has made Five Below LATIN AMERICA good progress in building a pipeline of International Meal Co. (IMC) Highlighting developments in Latin America interesting investment opportunities. In India, KAI Group Party City last year was an increase in investment activity the team continued to drive our value creation Terminal de Contêineres de in Colombia, where we completed three deals, plans at CARE Hospitals, supported an Paranaguá (TCP) including a strategic acquisition for an existing acquisition for a US portfolio company and Tinsa portfolio company. One new investment, completed the sale of CAMS, a leading Indian WorldPay Ocensa, Colombia’s largest crude oil provider of outsourced back-office processing WSIP transportation system, operates the main for mutual funds, to the National Stock *Subject to closing pipeline between the country’s Llanos region Exchange of India (NSE) in early 2014.

HOW WE PERFORMED BUSINESS REVIEW 07 69 investments in the sector through our buyout programs

SECTOR FOCUS BUSINESS AND FINANCIAL SERVICES

The Business and Financial Services sector is in consumer spending and we believe has extremely diverse and subject to a wide range years more to run. In niche we of external factors including the de-leveraging see areas of growth and opportunities for of the banking system after the financial crisis, re-engineering particularly in distribution and increasing regulation, and the deepening the back office. Back office administration penetration of IP technology in product and and services benefit from the trend for service delivery. Valuations have risen sharply outsourcing and the need for scale, trends and attractive investment opportunities that Equiniti is taking advantage of to provide remain scarce. high volume administration services to public and private sector customers in the UK. We Nevertheless, Advent continues to devote continue to focus on carve-outs from financial significant resource to the sector, consistently institutions, especially in Europe, where we focusing on a group of service providers, have seen deal flow improve. We use our transaction processors and software strong track-record from deals like Vantiv and companies that tend to have technology at WorldPay to actively target new opportunities, their heart. Market growth is a common thread and not just in payment processing. to our activities across geographies. We look for secular growth underpinned by robust On the development side, we continue to trends, strong business models with high spend time on financial technology, especially margins and cash generation, and in the US and in software. A new development transformational opportunities from carve- cell for 2014 is testing, inspection and outs and under-invested state-owned and certification (TIC) services, particularly in family businesses. The regulatory environment Europe. This is a high growth but fragmented is also a very important driver as increasing market, driven by increasing regulation and regulation forces restructuring and the requirement for companies to prove their divestitures from large financial institutions adherence to standards. Finally, in emerging and spurs the growth of companies that assist markets, we are also looking at fast-growing their clients with regulatory compliance. asset management and asset servicing businesses. InverCap and Alianza Fiduciaria Our sourcing efforts are focused around four are two recent investments that are able to main themes: In payment processing we capitalize on population growth and the anchor our growth thesis around cash and increasing penetration of financial products checks being replaced by electronic payments in Latin America. – a secular trend that withstood the downturn

08 SECTOR FOCUS BUSINESS AND FINANCIAL SERVICES CASE STUDY INVERCAP HOLDINGS

Driven by labor reform and a young Adding 1,300 agents and 16 new branches, PARTNERING demographic, Mexico’s emerging pension the company is well ahead of its sales Positive change system is one of the fastest-growing in the expansion plan. We are also forging systemic in developing world. With a disproportionately high opportunities to increase contribution markets number of workers to retirees in the country, levels in line with global standards and the potential for inflows into pensions is win approval of new investment models significant compared to outflows, and through regulatory change. sustainable as the working-age population Today, InverCap invests the retirement is set to rise further. savings of approximately three million We invested in Monterrey based InverCap employees, with total assets under in November 2012, attracted by the management of over $10 billion. Our company’s strong market position and its goal is to partner with InverCap in its prospects for growth. Founded in 1997, continuing success. InverCap’s main subsidiary, Afore InverCap, manages one of Mexico’s best-performing pension funds. Over the past year, we have supported InverCap in enhancing management and streamlining operations, strengthening controls and improving reporting procedures.

CASE STUDY VANTIV

Vantiv (formerly Fifth Third Processing technology and diversified the merchant DEVELOPING Solutions) is one of the largest providers customer referral channels. Looking for Strong foundations of payment processing and technology strategic growth opportunities, we for long-term success solutions for businesses worldwide. The completed and integrated four acquisitions company supports more than 400,000 that significantly extended the company’s merchant and financial institution locations scope and capabilities: National Processing and 12,000 ATMs across eight countries Company (NPC), TNB Card Services, and 46 states in the US. Springbok Services and Litle. In 2011, rebranded as Vantiv, the company moved Prior to our investment in June 2009, to independent headquarters preparing for the business was a large, but non-core its IPO. Vantiv (VNTV) became a publicly- division of Fifth Third Bank, with a shared traded company listed on the NYSE in March IT platform and reliance on the bank for 2012. Since then, Vantiv has continued to both referrals and key management substantially outperform its peers in share functions. Our goal was to carve out the price and is now the second largest division and fulfill its potential to become merchant acquirer in the world. an independent market leader, able to grow faster than the market. We sold our remaining shares in Vantiv through a secondary offering in March 2014. Over two years, we worked with the CEO to build a new management team, achieved the highly complex separation of shared

SECTOR FOCUS BUSINESS AND FINANCIAL SERVICES 09 34 investments in the sector through our buyout programs

SECTOR FOCUS HEALTHCARE

Healthcare has been a busy area for Advent control. Consequently, we are interested in in recent years, and one of ongoing change targets that deliver value for both payers and as rising costs, tightening regulations and providers through improving management increasing demand have led to unprecedented and processes, shifting the location of care levels of healthcare reform. Across Europe to more cost-efficient locations, or better and the US with debt as a percentage of facilities, technology and service. The three GDP running at all-time highs, the healthcare major areas that we continue to focus on are systems face the continuous challenge of pharma, healthcare services and medtech. providing more for less. In addition, consumer Regions showing high-volume growth, such engagement is growing with a dawning as emerging markets, are particularly attractive recognition that patients will need to bear where we see large population growth, a higher percentage of the cost of their own under-penetration of healthcare and a growing care. Expectations are also enhanced as middle class which increasingly desires better patients use the internet to access better and and more medical resources. more information than ever before. Corporate When we look for investments, we concentrate restructuring is another key influence, where on three main themes: We identify a clear diversified conglomerates are being forced value proposition for the payer while to determine their core business. maintaining high quality standards (Connolly Globally, these pressures are set to increase is a great example which is taking costs out of further as the population ages, the demand the system for the benefit of the payer); we in emerging markets develops, and scientific look for companies with the potential to drive and technological advances increase life operational improvements and/or buy-and- expectancy, leaving more people facing build strategies and we invest in proven chronic illnesses such as diabetes. In the science and technology. We believe this US alone, the number of people over 65 is focused strategy helps us to identify unique forecast to grow by 57% in the next 15 years opportunities like American Heart of Poland - a clear illustration of this trend. (AHP), where future growth is underpinned by specialist care, and Mediq, which offers However, while healthcare spend has grown multiple expansion routes and long-term above GDP in recent years, some of these consolidation. pressures are starting to bring spending under

10 SECTOR FOCUS HEALTHCARE CASE STUDY AMERICAN HEART OF POLAND (AHP)

Historically, cardiovascular diseases have Investing in 2011, we committed to using INVESTING claimed thousands of lives unnecessarily our resources and healthcare expertise to In specialist medical in Poland each year, with poor diagnosis support the business in its continued growth. services and a lack of available treatment primarily Focusing particularly on cardiac and to blame. In 2000, American Heart of Poland vascular surgery and rehabilitation, we see Clinics (AHP) was established by a group great opportunities to develop AHP‘s of prominent doctors from Poland and the comprehensive approach to the treatment US to introduce state-of-the-art cardio of cardiovascular diseases and to expand services and 24-hour facilities to lead the on its significant achievements to date. way in addressing this need. Since then, AHP has pioneered a wide range of services from medical advice, diagnosis and treatment to rehabilitation. In 2013 alone, 39,000 patients received its specialist care. The group now has more than 20 fully- equipped clinics, including a department of cardiac surgery with a hybrid operating theatre that meets international standards and a pioneering network of independent catheterization laboratories.

CASE STUDY MEDIQ

Founded in 1899, Mediq is a leading Over the past year, we have worked with RESTRUCTURING European healthcare product distribution management on a clear value creation plan, From public-to- business delivering pharmaceuticals, medical restructuring and resourcing the business to private, driving devices and related care services through increase revenue and streamline operations. sustainable growth three channels: direct to patients, healthcare We have agreed to sell the non-core Polish providers and via Mediq pharmacies. Based pharmacy operations and focused on in the Netherlands, the business operates strengthening Mediq’s lead in the Dutch across 15 markets. pharmacy market. Going forward, new product development and strategic Mediq’s strong position in the highly- acquisitions are central to our efforts to fragmented medical distribution industry, grow Mediq’s global influence and drive along with its recent drive for international long-term sustainable growth. expansion, offered significant opportunities for scale benefits and future global consolidation. Coupled with growing healthcare spend and an ageing population increasingly treated at home, this presented a compelling scenario for growth. Taking the business private in 2013, our aim was to build a European leader in medical supply.

SECTOR FOCUS HEALTHCARE 11 55 investments in the sector through our buyout programs

SECTOR FOCUS INDUSTRIAL

Industrial is a largely capex-intensive operational improvement opportunities and cyclical sector. However, individual supported by a general market recovery. sub-sectors and regions respond to diverse Global growth is the overarching theme trends, offering pockets of growth largely of much of our investment activity, with independent of the macro-challenges. emerging markets increasing in importance New energy sources, such as shale oil and as they play a role in both production and gas, offer continued growth, while housing demand. Our recent investment in Ocensa in in the US is being driven by recovery; mining, Colombia supports this strategy. Conversely, on the other hand, is suffering headwinds with ongoing industrialization and low costs from the Chinese super-cycle. Our approach of labor, emerging market competitors are is to look for growth where we have growing in size and becoming international extensive networks and knowledge, building competitors, so it is very important, not only sustainable business models that incorporate to understand the cycle of each sub-sector, the cycle, but are not dependent on the cycle but also to understand the basis of incipient for growth. We favor deal structures such as competition. corporate carve-outs, emerging market expansion, and strategic repositioning that Beyond our maintenance sourcing cells, play to our investment strengths. we are also looking at capital goods for carve-out and international expansion Currently, we target three main areas: In opportunities; and distribution services, oil and gas services, strong demand and where we see the potential for industry dynamic technological changes offer exciting consolidation and operational improvement. opportunities, in particular in horizontal and Mining is a new area we are developing in directional drill rigging for extracting oil and 2014. The sector faces change and over- gas. In chemicals and materials, restructuring capacities, but as proactive, experienced Western markets has led to consolidation investors, we believe interesting prospects, Oxea is a good example. Many opportunities often result from change. Asian and Latin American markets are also ripe targets for expansion. In building products, under-invested businesses offer

12 SECTOR FOCUS INDUSTRIAL CASE STUDY OCENSA

Established in 1994, Ocensa manages has begun a staged expansion project to EXPANDING Colombia’s largest crude oil transportation increase capacity by approximately 30%. system - the main pipeline between New opportunities Acquiring a minority interest in Ocensa Colombia’s Llanos region and the Atlantic in new regions in December 2013, our third investment in Coast. Pumping an average of 590,000 Colombia was a landmark deal for Advent, barrels per day, the system is a core strategic marking our first mid-stream oil and gas asset for Colombia, moving approximately investment. Partnering with management, 60% of the nation’s crude oil production, we plan to apply our significant energy representing around 70% of Colombia’s sector expertise to ensure Ocensa maintains total crude oil exports. its proven track record of safety and Ocensa operates the most cost-efficient reliability while supporting the business and reliable pipeline that connects the main in its continued growth. oil producing basin in Colombia with the main oil exporting port. The business is strategically well-positioned to manage further expansion of Colombia’s crude oil output, which has nearly doubled in the past six years and is expected to continue to increase. With its system currently running at close to 100% utilization, Ocensa

CASE STUDY OXEA

Oxea is one of the world’s leading and expand its presence in both emerging REPOSITIONING manufacturers of oxo chemicals for use and existing markets, allowing the company From carve-out in broad end-markets such as coatings, to achieve record revenues even when potential to global lubricants and inks. We formed Oxea in 2007 economic conditions became tough. by merging two standalone intermediate leadership Now, with over 1,400 employees, five chemicals businesses we acquired from production plants across Europe and the US Degussa (now Evonik) and Celanese. and sales offices in Asia and Latin America, Oxea’s competitive advantage lay in its Oxea is a world-class business with a broad excellence across all areas of the value chain, customer base and impressive earnings from superior proprietary technology to a growth. In December 2013, we sold Oxea balanced product mix. Maximizing this to the Oman Oil Company, well-positioned advantage required the well-coordinated to begin the next phase of its corporate integration of the two businesses and a development. rigorous strategy to accelerate growth. Supporting management, we realized significant cost-savings through purchasing and sales synergies. Investing in production facilities increased output and removed bottlenecks. Building on new product opportunities, we helped Oxea diversify

SECTOR FOCUS INDUSTRIAL 13 63 investments in the sector through our buyout programs

SECTOR FOCUS RETAIL, CONSUMER AND LEISURE

Recent earnings growth in the US is a positive Within the consumer products space, there sign and there are indications that growth in are increasing opportunities as larger global Europe may follow. Valuations are high groups are further rationalizing their however, and we remain selective and focused portfolios. These are providing opportunities when looking at new deal opportunities. to look at businesses where both top-line growth and internal operational improvements In Retail and Consumer, markets often differ are needed. Themes of health and wellness in by region, driven by local consumer trends. the food and drink area, as well as household In the retail space, three global themes remain goods ensure it remains an exciting sector, core to sourcing activity, value/discount, though at strong valuations. specialist and controlled brands, which we When we look at investments we consider adapt and apply on a local basis. With value/ these growth themes in the context of discount, further opportunities for rollouts and regional to national, and national to consolidation exist, as unemployment and the international. We use our industry expertise high cost of living continue to depress and global network to help us develop household spending. In emerging countries, relationships with companies we judge as low-income consumers offer the best potential stars. We also consider the new opportunity for future retail growth. Consumer tools and operating formats that impact demographics are also shifting as low-income sub-sectors in different ways, at DOUGLAS consumers become the middle classes in Holding for example, the share of internet emerging countries, and increasingly sales has more than tripled since 2008. While professional retail units make stores more we focus on our core maintenance cells, we appealing to all. In the specialist retail arena, are also on the lookout for new trends and focused businesses continue to take market changing themes that could result in share from generalists as consumers look for interesting deal opportunities. Restaurants/ the best choice, price and service within a food services and travel are two we have category. Amongst controlled brands, premium been developing during 2013 and The Coffee and luxury goods are continuing to grow, as Bean & Tea Leaf is one of the latest deals consumers of these products are less affected executed as a result of this sourcing strategy. by spending constraints and through digital technologies global brands are becoming more widely known quickly.

14 SECTOR FOCUS RETAIL, CONSUMER AND LEISURE CASE STUDY THE COFFEE BEAN & TEA LEAF

Founded in Southern California in 1963, The The business currently has more than 900 GROWING Coffee Bean & Tea Leaf has become one of stores spanning 15 US states and nearly 30 Market share and the largest privately-owned coffee and tea countries, as well as products in grocery global reach retailers in the world. Known for sourcing stores, restaurants and offices. We see a direct from the best independent growers, number of attractive opportunities for its emphasis on premium, handcrafted flavor further platform growth including increasing is central to the company’s identity, the number of company-owned stores, resonating with its expanding customer base introducing a variety of store-level initiatives both in the US and abroad. aimed at driving accelerated top-line sales growth and expanding franchise operations, We invested in The Coffee Bean & Tea Leaf especially across key Asian markets. in 2013, attracted by the strength of the brand and its connection with its consumers. With a rising culture of coffee consumption globally, and particularly in Asia, we saw a number of attractive opportunities to grow the business and increase its market share. Here, the regional expertise of our Shanghai team played a key role in the deal.

CASE STUDY DOUGLAS HOLDING

DOUGLAS Holding is a leading European Now, under new ownership structure, our BUILDING retail conglomerate consisting of five main objective is to support management Stable structures and independent divisions headquartered to accelerate the growth of the perfume attractive prospects in Germany: Douglas perfumeries, Thalia and jewellery divisions. Key areas of focus bookstores, Christ jewellery stores, are an increased presence in the domestic Appelrath Cüpper fashion stores and Hussel and international markets, as well as the confectioneries. The group has more than rapid integration of innovative cross-channel 20,000 employees and operates over 1,900 sales concepts. In the book division, our stores across 18 countries. strategy for a comprehensive repositioning includes a digital push. Across the business, In December 2012, Advent’s regional sector implementing industry-leading best practices teams partnered with DOUGLAS’ founders and cost-efficiencies is central to our value the Kreke family to complete a complex creation plans. public-to-private transaction to acquire DOUGLAS Holding. Bringing together our global resources with the Kreke family’s historical retail expertise, we have developed the strength and vision to reposition the business for sustainable future growth.

SECTOR FOCUS RETAIL, CONSUMER AND LEISURE 15 74 investments in the sector through our buyout programs

SECTOR FOCUS TECHNOLOGY, MEDIA AND TELECOMS (TMT)

Technology, Media and Telecoms (TMT) is a Through ongoing strategic reviews, we target sector defined by constant innovation and market-leading companies with clear value change, with the importance of digital creation plans and strong earnings growth technology felt by enterprises and consumers potential, often through international or around the world. The industry and businesses inorganic expansion. Our main sourcing themes involved are highly complex and dynamic. are based around the increasing penetration Advent has been a longstanding investor in and adoption of social, mobile, analytics and TMT attracted by the sector’s pool of cloud technologies. Our investments in UNIT4, opportunities, attractive growth drivers and P2 Energy Solutions and KMD all benefit from cash-generative models. Over the past four these trends. years, Advent has been active in the global Beyond our core themes, together with our TMT space, making four acquisitions, including operating partners, we continuously assess new Oberthur Technologies, KMD, P2 Energy trends and areas where we believe our unique Solutions and UNIT4. operational and strategic insights can turn Typically, companies within the TMT sector potential into sustainable earnings growth. have high growth rates and they respond to In 2013, we focused on five sourcing areas: secular trends not cyclical trends, meaning we Enterprise resource planning (ERP) software, are able to find interesting deal opportunities which addresses the increasing drive for even in markets with challenging economic efficiency in modern enterprises; engineering climates. Their global nature and multiple software, which addresses the growing layers of value creation fit well with Advent’s sophistication in energy and infrastructure investment model. Software businesses, in decision analysis; banking and finance software, particular, show consistent performance due which addresses the increasing complexity and to high customer switching costs, recurring compliance requirements in the financial revenue streams and excellent cash flow services industry; information and analytics, generation. The operational leverage of most which offers productivity and enhanced software companies also enables accretive decision-making tools; and lastly, the internet, follow-on M&A, and we believe the software which is a fast-moving economy with sub-sector offers dynamic exit options. increasingly mature investment opportunities with operational improvement potential.

16 SECTOR FOCUS TECHNOLOGY, MEDIA AND TELECOMS (TMT) CASE STUDY KMD

KMD is ’s largest IT company, potential to leverage our global resources INNOVATING providing innovative software, services and to help the business expand across Europe. business process solutions for government, World-class IT A first step has been to implement a program the public sector and private clients. solutions for complex of operational efficiency, streamlining Founded in 1972, the company has a long transactions decision-making to strengthen the company’s track record as a trusted partner to the core. Product development and customer Danish state, digitizing complex transactions support have also been enhanced. Now, from parliamentary elections and social KMD’s focus has turned to growing new benefits distribution to the administration public sector areas, innovating solutions for of schools. Each year, KMD’s systems handle eLearning and internet-based delivery for billions of kroner, equivalent to more than elderly care. 25% of Denmark’s GDP. Investing in the company in 2012, we were attracted by KMD’s unique insight into and competence in delivering critical software solutions to local government. Building on this platform, we recognized substantial opportunities to develop adjacent areas of the Danish welfare state. We also saw the

CASE STUDY P2 ENERGY SOLUTIONS

P2 Energy Solutions is the leading provider Accelerating product development and SUPPORTING of software and data to the upstream enhancing the go-to-market strategy are Product innovation, energy industry. Over 1,500 exploration and two growth initiatives that Advent is growth initiatives production companies use P2’s products spearheading to position P2 to maximize and strategic and services daily to improve decision- its growth potential. Additionally, we plan making, clarify complex workflow scenarios to continue to expand the scope of P2 by acquisitions and optimize efficiency. Based in the US, taking the current solution set to select the company employs over 700 people in international markets and through strategic offices around the world. acquisitions. Our acquisition of P2 in November 2013 was the result of a proactive search from our deal team and operating partners for a well- positioned vertical software and data business. Advent’s experience in both the technology and energy sectors enables us to leverage our experience and resources to help P2’s management execute its strategic vision of being the technology provider of choice for the integrated operations of exploration and production (E&P) companies globally.

SECTOR FOCUS TECHNOLOGY, MEDIA AND TELECOMS (TMT) 17 PORTFOLIO COMPANY LISTING

COMPANY REGION COMPANY REGION

BUSINESS AND FINANCIAL SERVICES INDUSTRIAL Alianza Fiduciaria Latin America Allnex Europe Equiniti Group Europe BOS Solutions North America GFKL Financial Services Europe Ceramica Europe InverCap Holdings Latin America H.C. Starck Europe Latin American Airport Latin America KAI Group Europe Holdings (LAAH) MAXAM Europe Nets* Europe Mondo Minerals Europe Terminal de Contêineres Latin America Morrison Supply Company North America de Paranaguá (TCP) NCS Energy Holdings North America Tinsa Europe Ocensa Latin America Towergate Partnership Europe TES Vsetin Group Europe TransUnion North America Vinnolit Europe Ultimo Europe

WorldPay Europe RETAIL, CONSUMER AND LEISURE

Bojangles’ North America HEALTHCARE Charlotte Russe North America American Heart Europe of Poland (AHP) The Coffee Bean North America & Tea Leaf Biotoscana Farma Latin America Devin Europe CARE Hospitals Asia Pacific DFS Europe Casa Reha Europe DOUGLAS Holding Europe Connolly North America Dudalina Latin America Laboratorio LKM Latin America Eko Holding Europe MEDIAN Kliniken Europe Five Below North America Mediq Europe Gayosso Latin America Priory Group Europe Gérard Darel Europe Regina Maria Europe International Meal Latin America Company (IMC) Partner in Pet Food (PPF) Europe Party City North America Quero-Quero Latin America Serta Simmons North America

TECHNOLOGY, MEDIA AND TELECOMS (TMT) KMD Europe Oberthur Technologies Europe P2 Energy Solutions North America Skillsoft** North America UNIT4 Europe * Investment signed subject to closing WSiP Europe ** Exit signed subject to closing

18 HOW WE PERFORMED PORTFOLIO COMPANY LISTING ADVENT INVESTING IN COMMUNITIES: CARE HOSPITALS

INVESTING IN CARE RAISING STANDARDS Despite rapid progress in other areas, CARE’s transformation into a professionally healthcare infrastructure has remained run organization is already well underway, relatively under-developed in India. with patients across Central and Southern Currently, less than one bed is India now able to access international available per 1,000 members of the standards of medical care in modern population compared with the global facilities equipped with the latest average of 2.7, an annual shortfall of over technology. In Hyderabad, the opening of 50,000 hospital beds. With the majority a new outpatient facility (the largest “ We are committed of existing hospital beds concentrated in standalone healthcare center in India) has to providing quality major cities, this gap in critical services is significantly extended the range of services healthcare with already felt more acutely by patients living available to the local population. Building compassion to in and around smaller cities. Over the next on this momentum, plans for three new more people in five years, as demand continues to grow the hospitals that will add around 700 acute situation is expected to deteriorate, leaving care beds in smaller cities are on track. India.” many communities without the modern  DR. B. SOMA RAJU, SUPPORTING COMMUNITIES medical treatments and facilities they need. FOUNDER OF CARE CARE has also been on hand to support HOSPITALS VISION AND VALUES its local communities in crisis. Following In 2012, Advent acquired CARE Hospitals recent terrorist attacks, CARE’s staff with a vision of creating a regional market showed outstanding dedication in difficult leader in acute care services. Founded in circumstances. In Chattisgarh, the badly 1997, CARE has grown from a single facility injured victims of an insurgent attack were focusing on cardiac care to a multi-specialty airlifted to CARE’s hospital in Raipur to group of 12 hospitals serving Central and receive life-saving emergency treatment. Southern India. Partnering CARE’s clinical In Hyderabad, in the aftermath of a excellence with Advent’s operational devastating bomb blast, CARE’s teams expertise, we saw the opportunity to help worked over several days to save seriously the business expand its footprint and injured patients admitted to their hospital capabilities to reach more patients in the and volunteered to attend to those at other region’s smaller cities. smaller hospitals in the city. Our first step was to upgrade and expand This commitment and compassion remain CARE’s existing facilities to provide the at the heart of CARE’s ethos as it strives to group’s clinical team with the quality deliver world-class standards of healthcare infrastructure they needed. Adding new to more people across the region. areas of specialization like orthopedics and ophthalmology was key to offering comprehensive care to patients. Central to our strategy was the acquisition of existing hospitals and development of greenfield projects in CARE’s current and adjacent markets to bring better healthcare to more people and address the shortfall in hospital beds.

HOW WE PERFORMED ADVENT INVESTING IN COMMUNITIES 19 ADVENT AT A GLANCE

FIRM FOUNDATIONS OUR TEAM Founded in 1984, we are one of the largest We are a team of more than 350 people and most experienced global investors worldwide, including over 170 investment dedicated solely to private equity. To date, professionals. At partner level, the average we have invested in more than 290 buyout tenure at Advent is 14 years, providing transactions in 39 countries. We invest experience, stability and continuity of where we see opportunities to partner with knowledge, and, as importantly, preserving management teams to increase revenue and the uniquely collaborative culture of our firm. earnings, positioning businesses for Our offices are staffed by local nationals, sustainable growth. whose market insights and regional SECTOR FOCUS connections are invaluable resources to We focus on five sectors we know well: both our broader organization and our Business and Financial Services; Healthcare; portfolio companies. Industrial; Retail, Consumer and Leisure; The size of our team and our global and Technology, Media and Telecoms (TMT). coordination allow us to deploy significant This specialization allows us to develop resources to identify investment unique insights into sector trends, enabling opportunities and support our portfolio us to build effective strategies to better companies at regional and international support our portfolio companies in levels. Globally, we share our knowledge achieving their growth objectives. and experience across our sector teams SHARED VISION to maximize our capabilities. We are a responsible, long-term partner OUR OPERATING PARTNERS to our portfolio companies. We aim to The use of operating partners is a make a constructive contribution, working fundamental element of our investment collaboratively with management teams to style. Currently, we have approximately achieve a shared vision for the future of their 60 operating partners who provide businesses. Typically, we invest for three to flexible support to our portfolio company seven years, or until the company is ready management teams throughout the to move to its next stage of development. investment cycle. Acting as independent advisors, our operating partners help to source and evaluate investment opportunities, extend industry networks and contribute to the strategic and operational development of our portfolio companies.

20 ABOUT US ADVENT AT A GLANCE CURRENT PORTFOLIO BY GEOGRAPHY

Asia Pacific 2% Europe 54% Latin America 20% North America 24%

By number of deals

CURRENT PORTFOLIO 21 BY SECTOR COUNTRIES WITH ADVENT PORTFOLIO COMPANIES Business & Financial Services 20% Healthcare 18% Industrial 22% 170+ Retail, Consumer and Leisure 29% Technology, Media and Telecoms 11% INVESTMENT PROFESSIONALS By number of deals GLOBALLY

ABOUT US ADVENT AT A GLANCE 21 ENVIRONMENT, SOCIAL AND GOVERNANCE

Good stewardship shapes our approach, and we encourage our portfolio companies to apply the same principles to their businesses.

MINIMIZING ENVIRONMENTAL IMPACT community initiative helping young urban We aim to minimize the environmental adults to reach their potential through impact of our business across our global mentoring and internships. network. Our approach to a healthy OUR GOVERNANCE environment is to reduce our energy usage Advent International Corporation (AIC) is where practical and recycle where local a fund manager. The majority of Advent facilities allow. This helps us to reduce offices act as advisors to AIC, providing our day-to-day environmental impact advice on the investment and divestment and costs, and also provides for small of portfolio companies. productivity gains. REGULATION OUR INVOLVEMENT IN SOCIETY AIC is regulated by the US Securities and We believe that personal choice and Exchange Commission. Where applicable, engagement bring the most benefits to both our advisory businesses are registered with employees and the causes they choose to their local regulator, such as the Financial support. We encourage Advent team Conduct Authority (FCA) in the UK. members’ involvement in areas of social responsibility such as fundraising, voluntary RISK MANAGEMENT AND COMPLIANCE work, mentoring, external appointments AIC is advised by dedicated investment and memberships. advisory committees of local senior partners and at least one partner from another region. In September 2013, over 100 members of This model ensures the consistent application the Advent team from across our global of global Advent standards and helps to offices took part as runners, drivers and enhance cooperation and knowledge- volunteers in Reach the Beach, a long- sharing between regions. distance relay race staged in New Hampshire. Coming together to raise funds Each fund has a dedicated advisory for Partners in Health (PIH) (www.pih.org), committee of limited partner representatives our relay teams successfully covered 205 who meet with us periodically to review the miles non-stop over 30 hours, supported by portfolio, discuss issues and opportunities their colleagues. The funds raised will help and monitor certain actions. PIH to expand rural health clinics in the A global compliance team led by our Chief high-poverty Chiapas region of Mexico and Compliance Officer maintains policies and to construct a new maternity hospital in the controls in this area and oversees our Neno district of Malawi. In addition, our internal governance programs worldwide. Boston office participates in YearUp, a

22 ABOUT US ENVIRONMENT, SOCIAL AND GOVERNANCE HELPING Advent team members raised funds to support Partners in Health’s plan to construct a new maternity clinic in Malawi.

TALKING TO STAKEHOLDERS IMPROVING PORTFOLIO COMPANY We attend portfolio company board GOVERNANCE meetings and are in regular contact with Good corporate governance is at the heart management. We also maintain a continuous of our value creation plans. We sit on the dialogue with our limited partners who boards of our portfolio companies as well invest in our funds and our portfolio as on audit, compensation and other companies, M&A intermediaries and the committees and work in close partnership wider private equity community. with our management teams. We are continually thinking about how we can We provide our limited partners with drive long-term improvements. regular communications on investment and exit activity and the progress of our We encourage our portfolio companies to portfolio companies. We send them adopt appropriate corporate governance quarterly fund financial reports, and hold procedures in line with established best an annual investor conference. Our investors practices and local legal and regulatory can access information about our funds requirements. and their investments at any time through a secure extranet. TRANSPARENCY AND DISCLOSURE We follow the guidelines on transparency and disclosure for private equity firms produced by the Walker Working Group in the UK and the BVK Large Buyout Group in Germany. For additional disclosures on investment activities in the UK and Germany that fall within these guidelines, please visit www.adventinternational.co.uk and www.adventinternational.de respectively. We also provide regular information to trade associations to assist them in analyzing the economic role and contribution of the private equity industry.

ABOUT US ENVIRONMENT, SOCIAL AND GOVERNANCE 23 THE PARTNERSHIP

At Advent, we place great value on the strength of our partnership, working together as one team to achieve the goals of our firm. As partners, we meet regularly and share our knowledge freely, recognizing that a collaborative approach allows us to be resourceful in our thinking and agile in adapting to change. With our management teams, operating partners and other stakeholders, we create a shared vision for the future of our portfolio companies and work collectively to realize the potential we see.

OUR PARTNERS Tom Allen Mario Malta Ronald Ayles David McKenna Ernest Bachrach Monika Morali-Efinowicz Humphrey Battcock Antonio Moya-Angeler James Brocklebank Chris Mruck Peter Brooke David Mussafer Jaime Carvajal Urquijo Tamás Nagy Jefferson Case Jeff Paduch Santiago Castillo Chris Pike Cédric Chateau Emma Popa-Radu Steven Collins Mauricio Salgar Guillaume Darbon Will Schmidt Filippo de Vecchi Ranjan Sen Juan Díaz-Laviada Ron Sheldon Chris Egan Eileen Sivolella Patrice Etlin Luis Solórzano Tim Franks Pascal Stefani Stephen Hoffmeister Georg Stratenwerth Ralf Huep Steve Tadler Shweta Jalan Bob Taylor Joanna James Juan Carlos Torres Jan Janshen Fred Wakeman Richard Kane Jim Westra John Maldonado Juan Pablo Zucchini

For further information on our partners and investment team please visit www.adventinternational.com

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24 ABOUT US THE PARTNERSHIP ADVENT OFFICES

BOGOTÁ MUMBAI Advent International Colombia S.A.S. Advent India PE Advisors Private Limited Avenida Calle 82 # 10-33 406, 4th Floor, Ceejay House Oficina 902 Shivsagar Estate Bogotá Dr Annie Besant Road Colombia Worli, Mumbai 400 018 Tel: +57 (1) 254 4747 India Tel +91 (22) 4057 3000 BOSTON Advent International Corporation NEW YORK 75 State Street Advent International Corporation Boston, MA 02109 375 Park Avenue USA 31st Floor Tel: +1 617 951 9400 New York, NY 10152 USA BUCHAREST Tel: +1 212 813 8300 Advent International Romania S.R.L. 89 – 97 Grigore Alexandrescu Street PARIS 3rd Floor Advent International SAS Bucharest 1, 010624 8 – 10 rue Lamennais Romania 75008 Paris Tel: +40 21 211 1602 Tel: +33 (0) 1 55 37 29 00 FRANKFURT Advent International GmbH PRAGUE Westhafenplatz 1 Advent International s.r.o. 60327 Frankfurt am Main Palladium Germany Na Porˇícˇí 1079/3a Tel: +49 (0) 69 955 2700 110 00 Prague 1 LONDON Tel: +420 234 749 750 Advent International Plc 111 Buckingham Palace Road SÃO PAULO London Advent do Brasil Consultoria e SW1W 0SR Participações Ltda. United Kingdom Av. Brig. Faria Lima 3311, 9º andar Tel: +44 (0)20 7333 0800 04538-133 São Paulo, SP Brazil MADRID Tel: +55 11 3014 6800 Advent International Advisory, S.L. Serrano, 57–2º SHANGHAI 28006 Madrid Advent International (Shanghai) Co. Ltd. Suites 3207-3208, Park Place Tel: +34 91 745 48 60 No. 1601 Nanjing Road West Jing’an District, Shanghai China 200040 Advent International PE Advisors, S.C. Tel: +86(21) 6032 0788 Edificio Omega Campos Eliseos 345 - 7° Piso WARSAW Col. Polanco Advent International Sp. zo.o. sp.k. México, D.F. 11560 Marszałkowska 89 Tel: +52 55 5281 0303 00-693 Warszawa Poland Tel: +48 22 627 5141

All non-US offices, except Advent India PE Advisors Private Limited and Advent International (Shanghai) Co. Ltd , act as advisors to Advent International Corporation. Advent India PE Advisors Private Limited acts as an advisor to Advent International Cyprus Limited, which in turn acts as an advisor to Advent International Corporation. Advent International (Shanghai) Co. Ltd. acts as an advisor to Advent International Hong Kong Ltd., which also acts as an advisor to Advent International Corporation.

ABOUT US OUR OFFICES 25 WWW.ADVENTINTERNATIONAL.COM