Annual Review 2018

Focused. European. Integrated. World-class.

1

01 Cinven Annual Review 2018

vices vices Cinven’ Financial Ser Consumer Healthcare Ab F 20 Ser Business TMT Cinven’ Cinven’ investment Responsible Industrials Contacts s investors ataglance 18 s governance Cinven out Stuart from McAlpine oreword

s investmentapproach

‘Cinven’ means, as the context requires, Cinven Group Limited, Cinven Partners LLP, LLP, requires, Cinven Group Limited, Cinven Partners ‘Cinven’ means, as the context S.A. and their respective Associates (as defined in the CompaniesCinven (Luxco1) Act 2006) and/or funds managed or advised by any of the foregoing. 02 03 05 07 08 14 18 23 27 34 35 36 37 30 Contents 02 Cinven Annual Review 2018

17

Number of nationalities in Cinven’s Investment team Cinven’s With a track record spanning more than more spanning record a track With 30 is on focus funds’ Cinven the years, to their investors returns attractive delivering by driving value in the companies creation they invest. Cinvenin which achieves this opportunities compelling by identifying and partnering with management to grow with management to grow and partnering good qualityand transform into companies or international leadersdomestic, regional attractive to potential buyers. highly that are which fully integrated model, Cinven’s draws portfolio regional, on sector, and expertise, thatensures markets capital the approach iscreative consistent, and collaborative the throughout investment lifecycle. bn

Assets under management € 11b n

Amount realised since the start of 2011 €25

60,000 c. c.

Number of people employed in the portfolio globally

13 0

€40bn

€37bn Realised proceeds

Total funds raised Total

> Number of companies Luxembourg, Milan, Guernsey, Luxembourg, Milan, Guernsey, in London, Paris, Madrid, Frankfurt, Paris, in London, New York. and Hong Kong more than 160 staff offices across 160 than more 80 and investment professionals private equity thanwith more firm Cinven is a leading internationalCinven is a leading

Cinven funds have invested in About Cinven About 3

03 Cinven Annual Review 2018

In particular, the Portfolio team has been the Portfolio In particular, with the addition strengthened significantly comprises hires and now of two senior In members globally. seven team addition, to grow the Cinven has continued new investment 10 Investment team, with in the year acrossAssociates joining Madrid and New York. London, Frankfurt, to promoteCinven also continued including three Partner internally, end. promotions at year investment inGiven the continued different geographies,our people across has grown to morethe Cinven team Going professionals today. 160 than forward, we will continue to grow and invest in the team, both on the investment side and more broadly across all corporate functions. we continued Over the course of 2018, to build on a number of growth and operational initiatives that were launched including our continued in the prior year, data and investment in technology, recently included a innovation, which firm-wide transition to a cloud-based investment platform. Organisational and Organisational developments strategic team to invest in the continue We footprint. international office across our

in a potential downturn. a slower economic growth environment. a slower economic our 30Over the course of year track demonstratedrecord, we have consistently investment Cinven’s our ability to ‘pivot’ to navigate approach focus and adapt our cycle. As isthe prevailing economic of the Fifthevident from the success has proven its abilityCinven Fund, Cinven to capitalise on the opportunities arising from economic dislocations. Cinven typically focuses on large, high-quality, often international assets with world class, industry-leading management teams that can both be financed or refinanced with limited reliance on local or domestic markets. Our dedicated Capital Markets team has worked hard to ensure that portfolio companies have the Cinven’s most capitalappropriate structures to support not only the growth of these businesses, but also to protect them Market backdrop Market European report, of this at the time While, and US historic remain at equity valuations continue to be financing markets highs and we are late sentiment suggests supportive, backdrop, Against this market in the cycle. targetingCinven is high-growth investment with resilient in companies opportunities are well positionedbusiness models that respective markets into outperform their

and realisation activity and realisation On the investing side, we closed for many months. As a result, in the vintage), Sixth Cinven Fund (2016 Cinven has built a diverse portfolio geography, of investments by sector, of Cinven’s Each currency and strategy. thesix core sectors are represented in All of the investments portfolio today. Continued successful investmentContinued successful out seven new compelling investment opportunities that our Sector and Regional teams had been cultivating are based on strategies and insights Cinven has identified to drive growth. continued to capitalise on the strong We Fifthperformance of investments in the date, of the vintage). To Cinven Fund (2012 Cinven investments in the Fifth 17 original aFund, nine are now fully realised, with realised.five investments partially further The Cinven Fund (2006Fourth vintage) was wound down after realising the remaining material value; a notable for a fund of its vintage.achievement

Managing Partner Stuart McAlpine and raising the Seventh Cinven Fund.and raising the investments, realising value for Cinven’s investors, for Cinven’s value realising investments, 2018 was another very successful year for Cinven, was another very successful 2018 sectors, exiting core investing in our team, our in which we made significant progress developing developing significant we made in which progress

Foreword from Stuart McAlpine 044

Foreword from The Seventh Cinven Fund Cinven Annual Review 2018 Stuart McAlpine Having successfully built an attractive continued portfolio of investments in the Sixth Cinven Fund over the last few years, in the autumn of 2018 we focused our attention on the significant investment opportunity set we see ahead for the Seventh Cinven Fund. We formally launched the fundraise for the Seventh Cinven Fund at the beginning Culture, values and diversity of 2019, and reached our hard cap of Our values As a people-centric, team-oriented firm, €10 billion in less than four months, we believe that driving best-in-class with material oversubscription. performance for Cinven’s investors is It is a significant milestone for Cinven predicated on us recruiting, developing to have successfully concluded another and retaining the best talent. Cinven’s fundraise in record time, and a testament values centre on fostering an inclusive to Cinven’s longstanding investment culture where all team members are performance through economic cycles, valued, respected, supported and the strength of the Cinven team and the positioned to succeed. long term relationships we have with Over the last two years, we have made Cinven’s investors. Collaboration Achieve distinction significant progress and begin to Looking ahead, we believe that in the Set the highest of standards is at our core without ego implement an Inclusion and Diversity Seventh Cinven Fund we have raised We are driven, rigorous and We believe in teams not We are considerate (I&D) programme, that aims to sustainably continuously strive to improve. individuals, and invest in and socially responsible. a fund that is right-sized for the market relationships for the long term. We value diversity improve the firm’s diversity and create a and transparency. opportunity. Through Cinven’s Sector and more inclusive workplace. The initiatives Regional teams, we will continue to identify are grouped under four core headings: attractive investment opportunities that we inclusive behaviours, recruitment, can target to define angles and strategies development and retention. to step-change growth. Cinven also continues to promote I&D across the industry including our involvement in industry-wide I&D initiatives and our recent sponsorship of the BVCA’s Minorities Breakfast. Test the art of the possible Develop talent We are bold, decisive We give people the opportunity In 2018, we introduced mandatory and entrepreneurial. to succeed and help them We stay agile and keep fulfil their potential. KPI tracking for gender diversity ahead of the market. for all of Cinven’s portfolio companies. 05 Cinven Annual Review 2018

Signed August 2018 AXA Life Europe

Signed July 2018

For more than 30 than more generated has Cinven years, For of a matrix uses Cinven returns. exceptional and localsector expertise country to target can it where companies strategically drive growthimprovement, operational and revenue both and globally. in Europe Signed December 2018

Acquired September 2018

Acquired August 2018 All investment opportunities are based hason strategies and insights Cinven of identified to drive growth, and each six core sectors are represented Cinven’s in the portfolio today.

Acquired July 2018

Acquired July 2018

sector, geography, currency and strategy. currency and strategy. geography, sector, deployment of the Sixth Cinven Fund Cinven has built a diverse portfolio by In 2018, Cinven saw the continued In 2018, Cinven Fund. As at year end, Cinven Cinven team squarely focused on growing to invest in attractive new opportunities. and strong realisations from the Fifth investments with thehad a portfolio of 20 and realising the portfolio, while continuing

New investments 2018 at a glance at 2018 6

06 Cinven Annual Review 2018 Significant exits

acquired and Ladival

Nizoral, Bioceuticals Raet acquired

acquired Scanclimber

signed HolidayTaxis

the acquisition of and BMC Euromodal

Ruredil, Chemtec,Ruredil, four add-on acquisitions BvT

acquired

eBilet signed the acquisition of

Significant add-on acquisitions

continued 2018 at a glance at 2018 7

07 Cinven Annual Review 2018

In many cases, Cinven identifiesIn many cases, Cinven in advance of aopportunities years being positionedcompany formally for sale, to create allowing Cinven and implement a tailoredinvestment approachstrategy and management for the company. Historically, Cinven’s Cinven’s Historically, for the company. have oftenpre-emptive approaches acted as a catalyst sale for the process of a business. success of this strategy is thatThe investment professionals, Cinven’s regardless of geographic location, work together as one cohesive team, executing a proven and consistent ‘one team’ This investment strategy. culture is deliberately reinforced with cross-firm organisational structures, regular cross-firm communication and meetings and structure.a single incentive

Our fully integrated model, which draws model, which Our fully integrated on sector and regional expertise, enableson sector and regional level of experience, us to bring a high contactsknowledge and key to investment allows us to develop opportunities. This proprietary and/ angles with management maximise Cinven’s or vendors and thereby opportunities wherepipeline of attractive origination advantage.there is a significant TMT Healthcare

Industrials Consumer

Services Financial

Services Business

Cinven’s investment Cinven’s approach 08

Cinven’s investments Cinven Annual Review 2018 Business Services

Cinven’s investments

Sector Partners

From left to right Nicolas Paulmier Jorge Quemada Rory Neeson Ben Osnabrug Florian Luther Pierre Estrade 9

09 Cinven Annual Review 2018

CEO Berg Michael Cinven representatives Partner Pettersson, Pontus Ben Osnabrug, Partner Headquartered in Stockholm, in Headquartered EnvirotainerSweden, a leading is of temperature- global provider cargo air containerscontrolled industry. to the biopharma Overview Envirotainer manufactures and leases designs, containers,temperature-controlled used primarily biopharmafor air freighting temperature-sensitive portfolio of more than 5,700 a products. With Envirotainerleased containers transports globally, of medicine per day forup to two million doses c. 600 including many customers worldwide, companies. global biopharma blue-chip Nordic team first identified Envirotainer Cinven’s opportunity in 2012. as an attractive investment closely with Cinven’s Nordic team worked The teamsBusiness Services and Healthcare sector to develop a compelling investment strategy. Envirotainer fits squarely within the Business providing key investment criteria by Services team’s at lowa mission-critical service to its customers cost but with a high cost of failure. Its underlying is aend market, biological pharmaceuticals, Healthcare Cinven’s growing sector in which team has significant experience. Cinven is focused on investing in R&D and to drive new product development,technology global as well as expanding Envirotainer’s container fleet and service network to capitalise on the strong underlying market growth. 310 Employees c.

Acquired September 2 018

air cargo containers www.envirotainer.com Global provider of temperature-controlled temperature-controlled of Global provider

Sweden (global operations)

HQ Cinven’s investments Cinven’s

Services Business 1010 Cinven Annual Review 2018 5,000 Employees c. Acquired September 2 016 Travel services provider services Travel www.group.hotelbeds.com

HQ Spain (global operations) Executive Chairman Joan Vilà Cinven representatives Partner Catterall, Peter Jorge Quemada, Partner

and operational integration of Tourico and GTA, and GTA, and operational integration of Tourico practices across the enlarged group. on the core bedbank business, including the IT and the implementation of commercial best Cinven and management to strategically focus Destination Management division, allowing successfully completed the disposal of its Pacific region. In August 2018, Hotelbeds Pacific region. In August 2018, Tourico Holidays in the US and GTA in the Asia Holidays in the US and GTA Tourico Hotelbeds made two transformational acquisitions: in 2017, the first full year of Cinven’s ownership, the first full year of Cinven’s in 2017, In line with Cinven’s strategy for the business, In line with Cinven’s in the sector. platform from which to pursue further acquisitionsplatform from which Cinven team identified Hotelbeds as an ideal Cinven Services investments, including Amadeus, theServices investments, including Amadeus, its previous successful technology-led Businessits previous successful technology-led acquisition. Leveraging Cinven’s experience from experience acquisition. Leveraging Cinven’s opportunity for more than 18 months prior to 18 opportunity for more than teams worked closely together on the Hotelbeds Cinven’s Business Services, TMT and Iberia Business Services, TMT and Cinven’s optimise revenues per available room (RevPAR). significantly increase occupancy rates andsignificantly increase occupancy rates complementary that distribution channels Founded in 2001 and headquartered in in 2001 Founded hotels across the globe with access to high-value, and points redemption schemes. and points redemption Overview Palma de Mallorca, Spain, Hotelbeds provides operators, retail travel agents, airlines, Hotelbeds’ clients include tour Hotelbeds’ clients hotels across c. 185 countries. 185 c. hotels across industry from a network of c. 180,000 a network of c. industry from offering hotel rooms to the travel offering hotel rooms business-to-business bedbank,business-to-business Hotelbeds is a leading globalHotelbeds is a leading Cinven’s investments Cinven’s

Services Business 1111 Cinven Annual Review 2018

900

Employees c. HQ UK

Acquired August 2 018 CEO Helen Ashton Cinven representatives Supraj Rajagopalan, Partner Rory Neeson, Partner www.jla.com small and medium sized enterprises small and medium Critical and services business for asset supply

expanding JLA’s product offering into new product offering expanding JLA’s areas, including Fire Safety. enhancing the digital user experience and strengthening existing customer relationships, focus areas include investing in the salesforce, strong progress made since acquisition. Key Lord John Birt, on the Value Creation Plan, with Creation Plan, Lord John Birt, on the Value opportunity for further growth in the UK team, led by CEO, Helen Ashton and Chairman, with resilient characteristics and a significantwith resilient characteristics management Cinven has been working with JLA’s it as a well-positioned, market leading business both organically and and internationally, through acquisition. tracking JLAtracking years, having identified for many Cinven’s Business Services team had been Business Services Cinven’s response times for a contracted monthly fee. equipment supply with guaranteed service ‘Total Care’ proposition which combines which Care’ proposition ‘Total associations, to whom it offers its differentiated homes, hotels, education providers and housing small and medium sizedsmall and medium enterprise customers. JLA care has a broad customer base, including Overview solutions to more than 25,000 solutions to more the UK. JLA commercial provides cateringheating segments in and and services business for the laundry,and services business JLA critical is a leading asset supply Cinven’s investments Cinven’s

Services Business 1212 Cinven Annual Review 2018

Executive Chairman Alp Saul Cinven representatives Partner Sautter, Thilo Partner Karadoganr, Yalin Headquartered in Istanbul, in Headquartered is a leading Pronet Turkey, security of monitored provider Overview of monitored securityPronet offers a full suite access CCTV, products including alarms, protection systems. Thecontrol and perimeter on the installationbusiness is primarily focused alarms as well as theand servicing of intruder alert management ofongoing monitoring and for a monthly devices in exchange such subscription fee. Business Services team identified Cinven’s player in the Turkish Pronet as a leading a market which monitored alarm market, is significantly less penetrated than other European markets, with a clear opportunity for growth. customer ownership, Pronet’s Under Cinven’s base has increased significantly and the company’s operations have been professionalised through the implementation of international best practices. Cinven has worked closely with Pronet’s themanagement team to continue enhancing hascustomer experience. Material investment aftersales and capabilities been made in Pronet’s been as PronetPlus, have new products, such to arm and enable customers which launched disarm phone. their alarm systems via their mobile alarms to residential and residential alarms to customers. commercial 1,400 Employees c. Acquired August 2 012 www.pronet.com.tr

Electronic security and alarm systems security Electronic

Turkey HQ Cinven’s investments Cinven’s

Services Business 1313 Cinven Annual Review 2018 900 Employees c.

Acquired August 2016 www.tinsa.es/en Property valuationProperty and advisory services

HQ Spain (operations countries in 11 across Europe and LatAm) CEO Ignacio Martos Cinven representatives Partner Sautter, Thilo Ben Osnabrug, Partner

opportunities continues to be explored. Cinven withgrowth through new product development, A pipeline of potential future acquisition A pipeline of potential future acquisition organicis also working with management to drive a focus on digital opportunities. and technology Tinsa’s product range and technical capabilities. product range and technical Tinsa’s internationalising operations and expanding seven add-on acquisitions to date, further Under Cinven’s ownership, Tinsa has completed Under Cinven’s including across Europe and the Americas. of its existing markets of Spain and Latin America, acquisitions in new geographic regions outside to use Tinsa as a platform from which to maketo use Tinsa as a platform from which benefit from market growth. Cinven also plannedbenefit from market growth. Cinven also estate to was well positioned market which Tinsa real as a leading player in the Spanish Cinven’s Business Services team identified Cinven’s clients including most Spanish banks. property valuations annually and has c. 100,000 100,000 property valuations annually and has c. c. 2,000 valuation experts, undertakes c. 400,000 undertakes2,000 valuation experts, c. c. It employs c. 900 a network of people, has It employs c. properties to individuals, banks and other clients.properties to individuals, banks and other mortgages for both commercial and residential Tinsa provides appraisals for new and existing Overview more than 25 countries worldwide. more advisory services operating acrossadvisory services valuation, analysis and real estate and real valuation, analysis Tinsa is a leading provider of property is a leading provider Tinsa Headquartered in Madrid, Spain, Headquartered Cinven’s investments Cinven’s

Services Business 141414 Cinven Annual Review 2018 See TMT page 31 Cinven’s investments Cinven’s

Maxim Crewe Xavier Geismar Peter CatterallPeter From left to right left to From Sector Partners

Cinven’s investments Cinven’s Consumer 1515 Cinven Annual Review 2018

CEO Neil Clifford Cinven representatives Maxim Crewe, Partner Chris Robinson, Principal Kurt Geiger (KG) is a leading UK is a leading (KG) Geiger Kurt retailer accessories and of footwear footwear luxury of the largest and one retailers Europe. in Overview in Bond Street, London, 1963 Established in UK, portfolio of brands has a diversified KG points from mass marketacross a range of price are derived through multiple Its revenues to luxury. its own stores, operating the including channels, luxury and premium footwear floors of both UK wholesaledepartment stores, online, accounts, stores. franchise and a number of international was originated by Cinven’s KG acquisition of The a detailedConsumer team following review of the KG Cinven identified European footwear market. continue growing in the UKas well positioned to givenand internationally in the footwear category strategy. its multichannel Since acquisition, Cinven has worked closely towith management on a series of initiatives drive growth, including signing new distribution agreements with leading third party brands, to further ecommerce platform investing in KG’s online trading performance and accelerate KG’s international wholesale expansion, with strong US. in the early momentum already achieved 1,350 Employees c.

www.kurtgeiger.com

Footwear and accessories retailer and accessories Footwear UK (international operations) HQ

2 016

February Acquired

Cinven’s investments Cinven’s Consumer 1616 Cinven Annual Review 2018 2,100 Employees c. www.planasa.com Innovation in plant varieties HQ Spain (global operations)

Acquired January 2 018 CEO Alexandre Darbonne Cinven representatives Jorge Quemada, Partner Partner Sautter, Thilo Miguel Segura, Principal

explored globally. Since acquisition, Cinven and management of acquisition opportunities have also been attractive primary investment opportunity, given attractive primary investment opportunity, identified Planasa placed to capitalise as well and convenience. wellness, and snacking numberposition the business for future growth. A serves customers across 11 countries from its 11 serves customers across closely together to identify Planasaan as teamand strong local presence in Iberia, the increased consumer focus on health and operational initiatives have been undertaken to services. Planasa employs c. 2,100 people and services. Planasa employs c. 2,100 Iberia teams worked Consumer and Cinven’s expertise consumer Cinven’s of growth. Through fromberry consumption continues to benefit ofofferings to drive growth. In parallel, a series provides farmers with seeds, plants and R&Dprovides farmers with seeds, plants and cover c. 4,000 hectares which facilities of land. 17 recordits market leading position and strong track globalon underlying long term growth trends, as have worked together to increase investment in R&D to develop new and/or improved product Spain, Planasa value-add operator that is high Founded in 1973 and headquartered in Valtierra, in Valtierra, and headquartered 1973 in Founded Overview within the berry categorywithin the berry worldwide. in plant variety research and nursery in plant variety research in the agri-food sector, specialising sector, in the agri-food Planasa is a leading global operatorPlanasa is a leading

Cinven’s investments Cinven’s Consumer 1717 Cinven Annual Review 2018 1,400 Employees c. HQ Hungary (pan European operations)

Acquired July 2 018 CEO Attila Balogh Cinven representatives Maxim Crewe, Partner Matteo Corà, Senior Principal Chris Robinson, Principal www.ppfeurope.com Market-leading pet food manufacturer Market-leading pet

pursuing targeted acquisition opportunities. Cinven and management are focused on and development and production capacity, benefit from the strong underlying market growth.benefit from the strong underlying market retailers, as well as investing in new product in both traditional and online retail to channels driving growth through geographic expansion and strategic new partnerships with select to continue supporting its existing retail partners, economic cycles. Furthermore, PPF placed is well strong track record of sustainedstrong track through growth fast-growing pet care market for some time. andopportunity given its resilient business model Consumer team, who had been reviewing theConsumer team, who had been reviewing team identified The PPF as an attractive The acquisition of PPF The by Cinven’s was originated wet and dry food and single-serve products. main categories of dog and cat food, including both private label and branded pet food in theboth private label and branded pet food of pet food per annum. PPF’s product range covers product range of pet food per annum. PPF’s Europe, PPF produces more than 450,000 tons With nine manufacturing operations across nine manufacturing operations With Overview

retailers specialists. and online discounters, specialty pet discounters, specialty including traditional retailers,including traditional Partner in Pet Food (PPF) Food Partner in Pet is a headquartered food manufacturer, 38 Europe, countries throughout leading business-to-business petleading business-to-business PPFin Hungary. supplies more than 250 across customers

Cinven’s investments Cinven’s Consumer 181818 Cinven Annual Review 2018 Cinven’s investments Cinven’s

Peter Catterall Peter Caspar Berendsen From left to right left to From

Sector Partners Cinven’s investments Cinven’s

Services Financial 1919 Cinven Annual Review 2018

CEO Erik Stattin Cinven representatives Caspar Berendsen, Partner Andrea Bertolini, Senior Principal Eugenio Preve, Senior Principal Headquartered in Milan, Eurovita Milan, in Headquartered products life insurance provides Overview Eurovita offerings its product distributes in Italy. 100 agents network of c. a diversified through financial advisors and and brokers, 11,000 Eurovita 2,500 Today bank branches. customers. manages c. 470.000 Financial Services and Italian regional Cinven’s opportunity to create teams identified the a leading Italian life insurance consolidator, employed by Cinven’s following a similar strategy centred on consolidatingFinancial Services team in the UKlife insurance businesses and Germany. of ERGO original acquisition The Italia was to platform from which identified as an ideal consolidate the Italian market in 2013. two sizeable Since acquisition in June 2016, acquisitions were completed by the initial ERGO Italy Italia platform; Old Mutual Wealth and Eurovita group combined Assicurazioni. The Cinven has was rebranded ‘Eurovita’ in 2017. worked closely with management to integrate forthe acquisitions, creating a robust platform further consolidation, and is focused on improving the commercial offering for customers, including the roll-out of new products. 230 Employees c. www.eurovita.it Life insurance provider Italy HQ

2 016 June

Acquired Cinven’s investments Cinven’s

Services Financial 2020 Cinven Annual Review 2018 1,200 Employees c. Consumer finance www.newday.co.uk HQ UK

Acquired January 2 017 David Giroflier, Principal David Giroflier, Cinven representatives CEO Caspar Berendsen, Partner Johan Pettersson, Principal Johan Pettersson, James Corcoran* * As at 31 December 2018 As at 31 *

base continues to grow and diversify, including base continues to grow and diversify, partners. In parallel, the Co-brand customer strong pipeline of potential high-profile retail partner in 2018 and ended the year with a partner in 2018 routes to market. NewDay signed its first routes to market. NewDay signed its first a newly formed partnership with Amazon. ‘product’ for online retailers, enabling faster ‘NewPay’. ‘NewPay’ is a fully digital credit ‘NewPay’ ‘NewPay’. culminating in the launch of its innovative culminating in the launch capabilities have been significantly enhanced, customer experience. NewDay’s digital customer experience. NewDay’s considerable time reviewing opportunities represents the largest credit card market management team to further improve the Cinven’s Financial Services team spent Financial Services Cinven’s investment opportunity in the UK, which Cinven has worked closely with NewDay’s card market, Own-brand and Co-brand.card market, Own-brand NewDay provides more than 5 million customers with a range of credit card products, including branded credit cards and store cards in partnership with a number of high street and online retailers in the UK. in the UK specialty finance subsector. team identified NewDay as an attractiveThe in Europe, given its positioning in a growing segment. operates in two segments of the UKoperates in two segments credit operations in Leeds and Basildon,operations in Leeds and NewDay Headquartered in London, UK,Headquartered in London, with additional Overview finance provider focused onfinance provider NewDay is a leading consumerNewDay is a leading the UK card market. credit Cinven’s investments Cinven’s

Services Financial 2121 Cinven Annual Review 2018 HQ UK 400 Employees c.

Acquired February 2 015 CEO Woolgrove Tom Cinven representatives Partner Catterall, Peter Maxim Crewe, Partner Anthony Santospirito, Senior Principal www.premiumcredit.com Specialty finance provider

technology initiatives to drive organic growth. technology enabler of many of Cinven’s Value Creation Plan Value enabler of many of Cinven’s IT system to a modern and flexible platform, a keyIT system to a modern and flexible platform, significant investment into upgrading PCL’s legacy significant investment into upgrading PCL’s of initiatives since acquisition, including drivingof initiatives since acquisition, including as a strong foundation from which to create as a strong foundation from which a seriesCinven has worked with management on and medium sized enterprises. PCLenterprises. sized medium and identifiedwas thea diversified specialty finance player in UK market. and competitive product to consumers and smalland competitive product to consumers and customers, delivering an important, convenient premium finance as an attractive product forpremium finance as an attractive product Cinven’s Financial Services team identified Cinven’s school fees.school subscriptions, commercial service charges andsubscriptions, commercial service charges annual fees such as professional fees, membershipannual fees such enabling businesses and individuals to spread time.the cost of their insurance premiums over of It also provides financing for the payment PCL plays an important role in the UK economy, Overview products to c. 2 million customersproducts for commercial and retail insurancefor commercial is a provider of premium finance of premium is a provider Premium Credit Limited (PCL) Limited Credit Premium in the UK a network of through c. 4,000 intermediaries. Cinven’s investments Cinven’s

Services Financial 2222 Cinven Annual Review 2018

Principal Viridium is a leading specialistis a leading Viridium insurance of life in the management in Germany. portfolios manages c.€60 billion of assets. inCinven and management continue to invest people, systems and infrastructure the group’s to deliver best in class service, minimise customer for and create a highly attractive platform churn focuspolicyholders. Cinven will also continue to on exploring further acquisition opportunities, and asset as well as optimising the group’s risk management strategy. CEO Roß Dr Heinz-Peter Cinven representatives Caspar Berendsen, Partner Principal David Giroflier, Phillip von Lossau, Headquartered in Frankfurt, in Headquartered Overview of focuses on the management Viridium established relationships and their customer is predicated on approach existing contracts. Its efficient portfoliosmooth integration processes, customer-focused servicemanagement systems, capitalunits and well-performing investment. Financial Services team has developed Cinven’s record in the strong track deep expertise and a Having identified sector. European life insurance market as an attractivethe German-speaking invest, the Financial Services to market in which Leben as an idealteam identified Heidelberger German to consolidate the platform from which market in 2009,via the and ultimately invested a series Through Fifth Cinven Fund in early 2014. acquisitions under Cinven’s transformational of with the ownership, most recently in 2018 concurrent acquisition Sixth Cinven Fund’s and Generali and combination of Viridium today Viridium AG, Lebensversicherung 800 Employees c. Life insurance and retirement products retirement

www.viridium-gruppe.com/en

Germany HQ

2 018 July Signed Cinven’s investments Cinven’s

Services Financial 232323 Cinven Annual Review 2018

Cinven’s investments Cinven’s

Supraj Rajagopalan Nicolas Paulmier Alex Leslie Pierre Estrade From left to right left to From Sector Partners

Cinven’s investments Cinven’s Healthcare 2424 Cinven Annual Review 2018

in Europe, the US Asia. and for Healthcare team had been focused Cinven’s organisation research some time on the contract to market in which industry as an attractive the growing number andinvest, in part, due to complexity of clinical trials required to bring new molecules to market. Building on Cinven’s team successful investment in Medpace, the benefitidentified Bioclinica as well positioned to from these underlying growth trends. management Cinven has worked with Bioclinica’s andteam on a series of initiatives to strengthen organisational structure to optimise Bioclinica’s position the company for future growth. CEO David Herron Cinven representatives Alex Leslie, Partner Partner Sautter, Thilo Bioclinica provider is a specialty servicesof technology-enabled to clinical the trials, supporting of new medicaldevelopment globally. therapies Overview had grown Bioclinica 1990, Established in acquisition, and atorganically and through acquisition, operated the time of Cinven’s Medical Imagingthree business divisions, solutions andand Biomarkers, eHealth offices from its Global Clinical Research,

2,800 Employees c.

for clinical trials www.bioclinica.com Technology-enabled services Technology-enabled

US (global operations) HQ

2 016

October Acquired

Cinven’s investments Cinven’s Healthcare 2525 Cinven Annual Review 2018

10,000 Employees c. www.stada.com Prescription generics and generics Prescription OTC pharmaceutical products OTC HQ Germany (global operations)

Acquired August 2 017 CEO Goldschmidt Peter Cinven representatives Supraj Rajagopalan, Partner Partner Bruno Schick, Matt Norton, Senior Principal

opportunity to support STADA’s organic opportunity to support STADA’s aand the German regulators in what was ownership to date, and has made a series of Cinven’s Healthcare team identified an Healthcare team identified Cinven’s implementing international best practices, closely Healthcare team worked The strategy. knowledge and experience provided invaluable boards, workers representatives, local advisors Cinven’s has performed well under STADA and market leading brands across a range of markets and therapeutic areas. growth through new product development and international expansion, alongside and to pursue a targeted buy and build German team, whose local with Cinven’s in discussions with the executive and supervisory highly complex public takeover with a broad and diverse set of stakeholders. acquisitions in line with its buy and build strategy. products, including numerous well known an OTC portfolio comprising c. 13,000 different 13,000 portfolio comprising c. an OTC across more than 30 has company countries. The quality, low cost generic products with a presence low cost generic products with quality, STADA offers a comprehensive range of high offers a comprehensive STADA today STADA is headquartered in Bad Vilbel is headquartered in Bad Vilbel today STADA employees. 10,000 near Frankfurt and has c. Founded in 1895 in Dresden, Germany, Germany, in Dresden, 1895 in Founded Overview

STADA Arzneimittel AG (STADA) (STADA) AG Arzneimittel STADA products. (OTC) over-the-counter is a leading European manufacturer is a leading European generics and of prescription

Cinven’s investments Cinven’s Healthcare 2626 Cinven Annual Review 2018

HQ Germany (European operations) Acquired 2015/ August 2015 October

20,000 Employees c. Group CEO Group Mathieu Floreani Cinven representatives Partner Catterall, Peter Alex Leslie, Partner Pierre Estrade, Partner www.synlab.com Medical laboratories diagnostic group

management team to successfully complete targets, Labco (headquartered in France) Cinven has worked closely with SYNLAB’s to while also continuing geographically, the consolidation strategy, predicated on predicated the consolidation strategy, merging two attractive and complementary and SYNLAB in Germany). (headquartered and integrate c. 90 further acquisitions as expanding the business part of its strategy, medical capabilities invest in SYNLAB’s and new product innovation. with its French and German teams to developwith its French Labco. Cinven’s Healthcare team worked closely Healthcare team worked Labco. Cinven’s than 12 months before Cinven’s acquisition of months before Cinven’s 12 than European laboratory diagnostics market moreEuropean laboratory diagnostics market business with broad capabilities across abusiness with broad opportunity to consolidate the highly fragmented than 35 countries, SYNLAB is a well-diversified group performs more than 500 million tests the Healthcare team identified Cinven’s in 2015. With operations spanning more operations spanning more With in 2015. range of routine and specialty tests. The for more than 50 million patients annually. subsequently merging Labco and SYNLABsubsequently merging Cinven created SYNLAB by acquiring and Overview laboratory company. services SYNLAB clinical is a leading European

Cinven’s investments Cinven’s Healthcare 272727 Cinven Annual Review 2018

Cinven’s investments Cinven’s

Bruno Schick Pettersson Pontus Xavier Geismar From left to right left to From Sector Partners

Cinven’s investments Cinven’s Industrials 2828 Cinven Annual Review 2018 1,200 Employees c. www.chryso-group.com Specialty chemicals manufacturer HQ France (global operations)

Acquired June 2 017 President and CEO President Bernard Thierry Cinven representatives Partner Nicolas Paulmier, Partner Xavier Geismar, Jason Diaz, Associate

revenue growth globally. initiatives aimed at accelerating organic number of key commercial and operational working closely alongside management on aworking closely alongside management on under consideration. Cinven’s Portfolio team is Portfolio under consideration. Cinven’s technology, differentiated products and differentiated products technology, and a pipeline of further potential add-ons in 2018 investment opportunity given its superior acquisition, strong progress Since Cinven’s with four add-on acquisitions completed strategy, building chemicals as an attractive segmentbuilding chemicals within the Industrials sector and Chryso, was identified as an attractive in particular, highly sophisticated processes. acquisition has already been made on Chryso’s Cinven’s Industrials and French teams identified French Industrials and Cinven’s employees. than 100 countries globally, with c. 1,200 1,200 with c. countries globally, than 100 on innovation. Today, Chryso operates in more Chryso operates on innovation. Today, and maintenance. The group has a strong focus group has a strong and maintenance. The systems for new construction and rehabilitation concrete repair, waterproofing, and protection concrete repair, construction systems for building construction,construction systems aesthetics and sustainability. Chryso also suppliesaesthetics and sustainability. production, enhance performance, workability, performance, workability, production, enhance Chryso’s products facilitate products cement and concrete Chryso’s Overview chemical admixtures for concrete for chemical admixtures Chryso is a leading producer of producer Chryso is a leading and additives for cement. and additives for

Cinven’s investments Cinven’s Industrials 2929 Cinven Annual Review 2018

CEO Philippe Gastineau Cinven representatives Partner Pettersson, Pontus Partner Xavier Geismar, Tractel is a leading player leading is a Tractel Overview is headquartered Tractel 1941, Established in more than and operates across in Luxembourg Asia. countries in Europe, North America and 120 develops and distributes lifting designs, Tractel load measurementand handling equipment, platforms and heightequipment, suspended safety mainly sells to rental equipment, and its 8,000 distributors.companies or through had spent a considerable Industrials team Cinven’s amount of time targeting investment opportunities in-depth analysis of thein this segment. Following the Industrials teamworking-at-height space, as an attractive Tractel target, with identified significant opportunities for growth. itsCinven has made good progress executing completing three buy and build strategy at Tractel, acquisitions in two years. Cinven and management continue to focus on a series of workstreams to drive organic growth across the group. New digital initiatives have been launched, andthe operating model has been optimised customer service levels have been improved through the implementation of international best practices. in the global market for market global in the equipment.working-at-height 800 Employees c. Acquired October 2 015 www.tractel.com

Manufacturer of working-at-height equipment of Manufacturer

Luxembourg (global operations) HQ

Cinven’s investments Cinven’s Industrials 303030 Cinven Annual Review 2018 Cinven’s investments Cinven’s

David Barker Nicolas Paulmier Chris Good Railhac Thomas From left to right left to From Florian Luther Sector Partners

TMT Cinven’s investments Cinven’s 3131 Cinven Annual Review 2018 1,800 Employees c. HQ Poland Cinven representatives Partner David Barker, Partner Railhac, Thomas Adam Prindis, Principal

Acquired January 2 017 Chairman Darren Huston CEO Francois Nuyts www.allegro.pl Online marketplace

shopping experience. logistics offerings to enhance the customer web and apps, alongside improved delivery and initiatives have focused on optimising the mobile delivery service ‘Allegro Smart!’ in 2018. Other Smart!’ in 2018. delivery service ‘Allegro including the strategic launch of a subscriptionincluding the strategic launch aimed at further accelerating organic growth, of commercial initiatives have been implemented investment in the technology platform. A number platform. investment in the technology ecommerce marketplace through continued ecommerce marketplace through continued management team to create a best-in-class management team to create a best-in-class Cinven has worked closely with Allegro’s Cinven has worked closely with Allegro’s retailers’ sales effectiveness. improve both the consumer experience and organic growth by investing in the business toorganic growth by investing in the business saw a significant opportunity to support future shift from offline to online shopping. Cinven alsoshift from offline to online shopping. Cinven platform, positioned to benefit from the continued Allegro as a leading national ecommerce Allegro as a leading national ecommerce accounts, with over 18 million people visiting 18 accounts, with over the sale of more than one million items per day teams identified TMT and Consumer Cinven’s Allegro has more than 21 million registered user Allegro has more than 21 the Allegro website every month and facilitates via its platform. their products directly to consumers in Poland. their products directly to consumers in Poland. marketplace for companies and individuals to sellmarketplace for companies and individuals Established in 1999, Allegro provides an online 1999, Established in Overview Allegro also operates Ceneo, Allegro shopping destination in Poland. in Poland. shopping destination marketplace and popular onlinemarketplace and comparisona leading price platform in Poland. Allegro is a leading online Allegro

TMT Cinven’s investments Cinven’s 3232 Cinven Annual Review 2018 HQ Spain (with Latin American operations)

Acquired July 2 018 900 Employees c. CEO Iñigo García del Cerro Cinven representatives Jorge Quemada, Partner Partner Railhac, Thomas Miguel Segura, Principal www.ufinet.com Fibre network operator Fibre

such as Argentina, Chile, Colombia and Peru, Peru, as Argentina, Chile, Colombia and such centred on geographical expansion into countries networks and new avenues of growth. progress on the Value Creation Plan, initially Creation Plan, progress on the Value and continued investment into both existing Cinven and management have made strong as a compelling investment opportunity. opportunity, Cinven identified Ufinet International opportunity, prospects and the actionable buy and build prospects and the actionable buy and of the business. Based growth on its international a deep institutional knowledge and understanding infrastructure and provides transmission network capacity and telecom, towering As a result of its investment in Ufinet Group, Iberia and TMT teams developed Cinven’s spanning more than 49,000 kilometres, Ufinet International leases optical fibre company also provides satelliteservices. The and other value-added services. former parent company, Ufinet International’s With an international connectivity network an international With Overview 14 countries in Latin America. 14 services to telecom operators acrossservices to telecom infrastructure and transmission infrastructure Ufinet International provides fibre provides Ufinet International Headquartered in Madrid, Spain,Headquartered

TMT Cinven’s investments Cinven’s 3333 Cinven Annual Review 2018

cloud-based solutions. had been targeting TMT team Cinven’s niche-softwareinvestments in the attractive being with Visma segment for some time, candidate in 2008.identified as an acquisition TMT sector expertise in technology- Cinven’s driven investments helped Cinven identify as an attractive investment opportunity Visma in and develop a strategy to support Visma its next phase of growth. delivered very strong growth under Visma by strong conversion ownership, driven Cinven’s of its acquisition pipeline, with more than 80 acquisitions completed, coupled with continued organic growth of its core cloud Cinven completed products. In May 2019, the sale stake of its remaining in Visma. CEO Øystein Moan Cinven representative Chris Good, Partner Visma delivers Enterprise Resource Enterprise delivers Visma (ERP)Planning and services software small and 700,000 than to more retailers sized enterprises, medium and local authorities across Overview developing ERP is a leader in Visma software Software-as-a-Serviceand services through (SaaS), to shift from allowing companies software to onlinetraditional ‘on premise’ Northern Europe.Northern HQ Norway

6,700 Employees c. www.visma.com Enterprise software provider Enterprise software

2 014

August Acquired

TMT Cinven’s investments Cinven’s 3434 Cinven Annual Review 2018

4 Family office Family

5 Fund of funds of Fund

8 Corporate pension fund pension Corporate

10 7

Middle East Middle others and Endowment

10 15

Insurance Asia

34 16

Europe Sovereign wealth fund wealth Sovereign

47 44

Americas Americas fund pension Public Fund 6 investors by typeFund (by amount invested %) Fund 6 investors by geography Fund (%) Cinven has a well-diversified, global investor global a well-diversified, has Cinven of institutions mainly consisting base, funds, public pension corporate or as such companies, insurance wealth funds, sovereign family and and foundations, endowments globally investors 175 than More offices. the Sixth Cinven Fund. participated in

Throughout Cinven’s track record, we record, track Cinven’s Throughout utmost importancehave always placed the LPs. towards Cinven’s on our responsibilities guiding principles are transparency Cinven’s Cinven provides regular, and and accessibility, accurate and detailed in its information communications with investors. (IR) Investor Relations team comprisesCinven’s a group of senior individuals, all with investment as keyand/or operational experience, who serve points of contact LPs. between Cinven and its integrity a commitment to professionalism, With the IRand transparency, team strives to uphold the highest standardsacross of communication LPs. all interactions with Cinven’s

We view Cinven’s investors (Limited Partners view Cinven’s We

investors Cinven’s Cinven’s beneficiaries and that the returns generated dedication, and care, to build lasting relationships. dedication, and care, cognisantof that they represent millions our relationships with them with transparency, them with transparency, our relationships with investor base, we are highly institutional global insurance policies for people around the world. or ‘LPs’) as long term partners, and we cultivateor ‘LPs’) as long term relationship is with Cinven’s our primary While andby Cinven Funds help to finance pensions 3535 Cinven Annual Review 2018

Makes investment recommendations to the Managers of the Cinven Funds Makes divestment recommendations to the Managers of the Cinven Funds

Responsible for risk management and compliance

(Meets quarterly and at critical milestones)

Monitors process and transaction costs (Meets at critical milestones of investment transactions) Advises the Managers on portfolio management and the development of theof each Cinven Funds

(Meets bi-monthly and reports to the full Partner Group at its quarterly meeting) (Meets bi-monthly and reports Considers valuation ranges Oversees Cinven’s human resources Facilitates sharing of best practice across portfolio companies Cinven is an independent group, wholly group, an independent is Cinven Partners. of its the benefit for owned on delivering focused It is exclusively its fund investors to responsibly returns beneficiaries. and their

Examines proposed transaction structures

(Meets weekly)

Controls financial management

Ensures each portfolioEnsures each company has the required management team and Cinven resources to generate value

Reviews the development of investment cases at all stages

in the day-to-day management of Cinven Partners LLP Responsibility to support the Managing Partner Sets the strategic direction and policy of the firm Reviews sector and business considerations the progress Tracks portfolioof each company against the strategic plan Members: Caspar Berendsen, Peter Catterall, Ivan Kwok, Stuart McAlpine, Matthew Sabben-Clare Sautter and Thilo Catterall, Ivan Kwok, Members: Caspar Berendsen, Peter Operating Committee Hess, Stuart McAlpine and Matthew Sabben-Clare Colato, Alexandra Members: Michael Partner Cinven Partners Group LLP Executive Committee also attends EC meetings Financial Officer, Chief Cinven’s Colato, Supraj Rajagopalan. Michael Paulmier, Hess, Stuart McAlpine, Nicolas Catterall, Alexandra Caspar Berendsen, Peter Members: David Barker, Investment Committee* Jorge Quemada and Supraj Rajagopalan Catterall, Stuart McAlpine, Nicolas Paulmier, Peter Members: David Barker, Review Committee* Portfolio

Portfolio managementPortfolio of the Cinven Funds Risk control framework and risk management of the Cinven Funds

of the Cinven Funds Governance T As at 31 December 2018. As at 31 the Boards of the Guernsey Managers. the Boards of the Guernsey ManagersBased on the recommendations, investment and divestment decisions relating to the relevant Cinven Fund. make on a quarterly basis. Non-fund management responsibilities are delegated to the Managingon a quarterly basis. Non-fund management responsibilities successful governance system.Partner and specialist committees in a well-proven and portfolio company three committees oversee resources, investment recommendations, The development and exit recommendations, as shown here. reports to the Cinven Partners. Cinven Partners meet formally as the entire Partner Groupreports to the Cinven Partners. Cinven Partners meet and its Executive CommitteeCinven Partners LLP advises the Guernsey Managers, The Fifth Cinven Fund is managed by Cinven Capital Fifth Cinven The (V) General Partner Management Limited and the Sixth Cinven Fund by Cinven Capital Management (VI) General Partner BoardsLimited (the ‘Guernsey Managers’). The Managers supervise of the Guernsey the governance; risk control framework and portfolio management of the Cinven Funds. the governance; risk control framework and portfolio Directors: Hugh Langmuir, Guy Davison, Hayley Tanguy, John Boothman, Rupert Dorey and William Scott. Rupert Dorey and William John Boothman, Guy Davison, Hayley Tanguy, Directors: Hugh Langmuir, The Boards of the Guernsey Managers Boards The As at 31 December 2018. As at 31

governance Cinven’s Cinven’s

* makerecommendationsto ReviewCommittees,oftheCinvenadvisoryentities, he InvestmentandPortfolio 3636 Cinven Annual Review 2018

At Cinven we believe that responsible responsible that we believe At Cinven business with in hand hand goes investment companies to invest in aim We success. towards that takeapproach a responsible environmental, corporate social and (ESG)governance continue We factors. our approach and develop to refine ESGtowards all stages through of life cycle. the investment

We believe that strong corporate We governance is fundamental for the effective management of ESG. ESG should be fully operations a company’s embedded within to support strong and sustainable growth. Cinven representatives are appointed to portfolio company board and playeach a key role in reinforcing high standards of corporate governance from the outset. broader Inclusion As part of Cinven’s & Diversity initiative, during 2018, mandatory ESG KPIsCinven’s were portfolio broadened across all of Cinven’s companies. New KPIs were introduced gender diversity (company-wide,to track C-level management and Board level) and workplace grievances, including harassment and anti-social behaviour. In recognition of their paramount importance, these additional KPIs supplement the three mandatory ESG KPIs that Cinven already monitors, which healthrelate to anti-bribery and corruption, and safety and carbon emissions. Cinven’s ESG and Steering Group closely tracks monitors ESG KPIs and reporting.

investment companies, we monitor our own portfolio companies to explore and to managing Cinven’s Our approach portfolio applied to Cinven’s approach and worked more closely with Cinven’s and worked more closely with Cinven’s realise ESG opportunities. own ESG performance also continues to develop and, consistent with the ESG performance closely. enhanced our management of ESG risk, institutionalised and significantly 2009. Over the last 10 years, we have 10 2009. Over the last We are committed to building long term, We of Responsible Investment (PRI) since internationally recognised Principles internationally recognised Principles economic benefit in an environmentallyeconomic benefit Cinven has been a signatory to the provide employment and generate provide employment ownership. during and after Cinven’s sustainable businesses which will grow, sustainable will grow, businesses which both manner, and socially responsible Responsible 3737 Cinven Annual Review 2018

09 5200 09 5230 +852 3 +852 3 +1 2 +352 26 +352 26

Tel Fax New York 665 2880 Cinven, Inc. 665 2980 Avenue, Madison 510 NY 10022 New York Tel 3281980 12 Luxembourg Cinven Luxembourg S.à r.l Ballade Building, B2 4 rue Albert Borschette Luxembourg L-1246 Tel Fax Hong Kong Cinven HK Limited Unit 8506B, 85 Level ICC 1 Austin Road West Hong Kong Kowloon, www.cinven.com 4 71 44 44 4 71 44 99 4 71 +3 +3 +4 +4 +33 (0)1 4 +33 (0)1 4 +3 +3

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Cinven Capital Management (V) General Partner Limited La Charroterie Level 4, Mill Court, 1EJ Guernsey GY1 Port, St Peter Tel Cinven Capital Management (VI) 650 743 4 (0)1481 Tel 650 743 4 (0)1481 Tel Tel 650 743 4 (0)1481 General Partner Limited Level 4, Mill Court, La Charroterie 1EJ Guernsey GY1 Port, St Peter Channel Islands Cinven Limited La Charroterie Level 4, Mill Court, 1EJ Guernsey GY1 Port, St Peter

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1 Silk Street, London EC2Y 8HQ Registered office Cinven International Ltd London EC4M 7AG Tel Fax 3333 4 (0)207661 3888 4 (0)207661 Warwick Court, Paternoster Square Court, Paternoster Warwick Cinven International Ltd London EC4M Warwick Court, Paternoster Square Court, Warwick Tel Fax 3333 4 (0)207661 3888 4 (0)207661 Cinven Partners LLP London EC4M 7AG London EC4M 7AG Warwick Court, Paternoster Square Court, Warwick Cinven Limited Registered office Cinven Limited Registered UK Contacts