KnowledgeNow: Future Foundations KnowledgeNow Conference October 2016 The 6th Annual Apax Partners Barcelona, KnowledgeNow Conference took place in Barcelona on October 2016 18 to 20 October 2016

What’s inside this report?

Introduction Building the future for growth Putting the foundations in 02 12 20 place: case studies for success Building foundations for the future in Follow your North Star uncertain times Kyle Leahy Executive Vice President and A recipe for winning new customers Seth Brody Partner and Global Head of the General Manager of North America, Cole Haan Jon Simmons Operating Executive, Operational Excellence Practice, Apax Partners Apax Partners Mapping career paths to a strong future Greg Kayata Senior Vice President of Preparing for public markets Doug Ahrens CFO, GlobalLogic Shifting foundations in a Human Resources, Acelity 04 turbulent world The price of change Health and safety as a value driver Scott Kim CEO, Bankrate.com Cliff Dixon Vice President of Information Micro-opportunities, macro-knowledge Technology, Quality Distribution Building strength in carve-out situations Andrew Sillitoe Co-CEO and Nico Hansen Putting customers at the heart of Chief Offi cer, Apax Partners Noel Goggin CEO, Aptos Matt Foster COO, Duck Creek Technologies systems planning Putting Brexit in a global context Vid Desai CIO, Vyaire Medical Sal Caruso CIO, One Call Care Management Andrew Sentance Senior Economic Nick Iozzo Operating Adviser, Apax Partners Adviser, PwC Extending your infl uence Rich Beattie Vice President, Multiply Using the Apax Portfolio Effi ciency The view from the Hill platform to get “large company” John Boehner 53rd Speaker of the United procurement States House of Representatives Edward Burgers Procurement & Facilities Manager, Exact Software

Attendees The Operational Excellence team A differentiated platform for 26 28 30 value creation KnowledgeNow 2016 01

In attendance... Apax Partners is one of the world’s leading Executives and partners advisery fi rms. An independent global partnership focused 118 solely on long-term investment in growth companies, our Funds invest in four sectors: Consumer, Healthcare, Services Portfolio companies* and Tech & Telco. 28 Apax Funds’ strategy is to drive superior returns through sector expertise, geographical fl exibility and transformational Representing... ownership. To that end, the Operational Excellence Practice Annual sales (“OEP”) and the fi rm’s vertical domain expertise are brought to $15bn+ bear through the life cycle of a deal to drive value. The OEP is comprised of resources possessing deep operational expertise Employees and broad acumen as general managers. The OEP resources 100,000+ “get in the boat” with management teams to drive results. Through the OEP’s KnowledgeNow programmes, communities and conferences, we create forums for executives to share experiences and discuss the common challenges our portfolio businesses face. Our annual conference, held in October 2016 in Barcelona and recounted in this brochure, is the cornerstone of these efforts.

* Registered 02 Apax Partners KnowledgeNow 2016

The KnowledgeNow Conference was then, even now that the conference The evolution of Operational Excellence brings together portfolio companies, comprises attendees from portfolio critical vendors and operational experts companies representing more than from across the Apax network to $15 billion in annual sales. discuss common themes and to share As part of our own commitment to best practice. In the wake of the Brexit decision in continuous improvement at Apax, the UK and with the US election result we recently asked McKinsey to The conference has grown from strength looming large on the horizon, the examine the evolving perceptions to strength since ten people gathered in conference provided the ideal forum to and expectations of the Operational a New York conference room in 2011 discuss how businesses could continue Excellence Practice through a and realised they were facing many of to fl ourish in uncertain times by building comprehensive research study. the same challenges. This sense of a “Future Foundations” today. common purpose is as true today as it We take the idea of continuous improvement very seriously and wish to focus on serving two constituencies: Our primary objectives internally helping our deal teams and deal partners carry out due diligence on the way in; and externally supporting our portfolio executives to grow their businesses and drive equity value.

The results from the survey were clear. Share... Network... Accelerate... Apax portfolio companies appear happy with our mission and strategy – we are designed to “get in the boat and row” with the portfolio companies, and we get in with a strike-force mentality. This seems to be understood and working ... ideas ... with each other ... project delivery well, with strong results and partnerships around the global portfolio. ... experiences ... with our partners ... talent development ... data ... with Apax ... transformation What was less universally understood ... best practices ... execution is the full range of services that the OEP provides, where there is opportunity ... worst nightmares to more broadly communicate our capabilities. There are also functional areas where we will strengthen our offer going forward, most notably in the areas of corporate carve-outs and human capital.

More than 80% of the value that’s Portfolio Companies Registered: been created in our comes from the work that each and every one of our portfolio companies does every day; expanding margins, driving profi tability and growing the top line. Seth Brody Partner and Global Head of the Operational Excellence Practice, Apax Partners 03

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OEP through the numbers

Days of Effort in 2,823 Past 12 months(1)

Portfolio Company $2.28bn Spend Optimised(2)

“Cross-Portfolio $170m+ Revenue” Generated(3)

Portfolio Companies 39 Engaged in Past 12 months(1)

Cash EBITDA $293m+ Savings Generated(2)

UNPRI/RobecoSAM A+100% ESG Rating 04 Apax Partners KnowledgeNow 2016 05

KnowledgeNow: Future Foundations Shifting foundations in a turbulent world Insights on a year of unprecedented political and economic turmoil. Our experts unpick the trends and offer their thoughts on the road ahead. 06 Apax Partners KnowledgeNow 2016

Shifting foundations in a turbulent world continued

In the face of a “frothy” environment, Micro- Andrew Sillitoe outlined the three pillars of sector expertise, geographical fl exibility and transformational ownership opportunities, that defi ne Apax, and zeroed in on macro- micro-theses over macro-bets. Apax Partners’ sector approach developed from the fi rm’s roots and knowledge predates that of many private equity peers. We overlay digital expertise across these Andrew Sillitoe Co-CEO, Apax Partners with Andrew Sillitoe, co-CEO, sectors and take a fl exible geographical Nico Hansen approach by moving our sector experts This has led to a focus on the micro-thesis Apax Partners, and , to the opportunities we see. We add Chief Investment Offi cer, Apax Partners over the macro-bet. Recent Apax Funds transformational ownership through acquisitions have tended to follow four key measures such as management themes: digital improvement, carve-out/ improvement or accelerated M&A operational improvement, international to generate superior returns. expansion and consolidation. Some fall into one category, but Apax is committed to striving to maintain many, such as Duck Creek Technologies its target returns, despite the fact that the and Vyaire Medical, fall into a number current low-interest rate environment and of them. high company valuations make this more challenging than in the past. Rather than High asset prices and cheap borrowing do paying highly for developed businesses mean it is a good time to sell – Apax Funds with sustained growth, Apax is searching has achieved realisations of $21.5 billion for companies at lower valuation where since 2014.(4) But against the backdrop of we can create value early through low, sometimes negative, interest rates transformational skills. we are refusing to drop our target returns – we believe that can leave little room for companies underperforming versus plan in uncertain times and compound potential for low returns. Apax has achieved... Event driven volatility 300 $21.5 billion UK Brexit vote of realisations since 2014(4) 250 Political unrest

3.4x Referendum 200 achieved on 2016 realisations(5) Elections

150 Elections

Elections 100

50

Oct 15 Jan 16 Oct 16 Feb 17 Apr 17 Jun 17 Oct 17 June 15 May 16 Sept 16 Dec 16 Aug 17 Dec 17

Footnote reference (6) Footnote reference (7) 07

Nico Hansen delved deeper into the With asset prices high in the US, we are world’s economies to explain how Apax looking towards Europe and emerging is pivoting to markets and subsectors markets similar to where valuations where lower valuations can be found. are lower on average. While we do focus on micro-theses, the macro-environment Public market valuations have continued is critical. Where we see a positive to rise throughout 2016 and are above macro-backdrop and moderate or low their fi ve-year averages in most markets valuation levels, it’s an incentive to around the globe, while private company deploy our resources to unearth those valuations are at 10.5x, trailing EBITDA in micro-opportunities. the second half of 2016. We are seeing how they are now back in line with levels Average PE multiples seen in 2007 before the fi nancial crisis. (EV/LTM EBITDA)(8)

At the same time, political uncertainty can 5.9 4.5 2008 cause signifi cant volatility. The UK’s Brexit 5.7 4.2 Nico Hansen Chief Investment 4.3 4.5 decision continues to have near-term 2009 4.3 4.0 Offi cer, Apax Partners economic repercussions while political 4.8 4.9 unrest in Turkey, the presidential elections 2010 5.0 3.7 in the US, the referendum on constitutional 5.0 4.2 2011 reform in Italy, as well as forthcoming 5.6 3.9 4.7 4.8 elections in France and Germany, all have 2012 5.5 3.7 scope to upset markets. Taken together, 5.4 3.4 all of these factors indicate high potential 2013 5.7 3.3 for another market correction in the next 5.9 4.3 six to twelve months. 2014 6.1 4.2 6.0 4.2 2015 Despite this turbulence, Apax Funds has 5.9 4.6 investors’ capital to deploy and we are Q1-16 5.8 4.9 YTD 5.8 5.3 hunting for – and fi nding – opportunities. HA-16 5.4 5.0 YTD 5.6 4.9

Europe, Debt (x) Europe, Equity (x) US, Debt (x) US, Equity (x)

Market outlook snapshot

UK China Potential Brexit disruption higher than markets expect High debt levels must come to an end US Spain High valuations, tough times An impressive recovery story against diffi cult political backdrop for energy and industrial sectors Israel India Small economy, moderate/ low valuations Strong macro, albeit slow political reform Africa Brazil Fragmented, political, underrated Improved political situation, potential for strong rebound

Footnote reference (9) 08 Apax Partners KnowledgeNow 2016

Shifting foundations in a turbulent world continued

Global concerns and UK-specifi c political and economic decisions. Putting Brexit in factors led to the Brexit decision Leading British politicians often used the EU as a scapegoat for problems at home. An anti-globalisation backlash, in part Sentance claims that these factors, along a global context brought on by the rise of Asian economies with a badly managed pro-EU campaign, and the declining infl uence of the West led to the unexpected fi nal result. as well as fears about immigration, were with Andrew Sentance, Senior the two main reasons behind the UK’s UK will bear the brunt of Brexit fallout Economic Adviser at PwC and former unforeseen decision to leave the European as the global economy moves forward Bank of England Monetary Policy Union in June. Neither of these factors is Despite the global concerns about a Committee member confi ned to the UK as Sentance sees the same trend of discontent across Europe slow recovery from the Brexit decision, economic growth has been remarkably In Sentance’s presentation Brexit – and the US, as highlighted by mounting popular support for both far-right and solid. While developing economy and the changing global economic far-left political parties. “The growth of growth rates have been particularly high, order he outlined the causes and people’s living standards, particularly in developed economies in Europe and North consequences of the UK’s Brexit vote. traditional industries, has been fairly weak America have also performed soundly. He also highlighted long-term global and fairly low and that’s contributed to the Growth rates of about 2% might seem disappointing when compared with the trends that might provide potential perception that this great global economy that we created in the period from the heady 3%–4% rates achieved by some investment opportunities. 1990s onward maybe isn’t serving the economies before the fi nancial crisis. interests of many working people in They are actually in line with long-term western economies,” Sentance said. averages achieved from the 1980s onwards. “Two per cent growth is quite It’s worth noting the decision was healthy for a western economy,” Sentance infl uenced by a number of UK-specifi c explained. Even Japan is growing at the issues, which may limit a similar voting same rate as the US when you adjust for outcome elsewhere in Europe. Since the its declining population. We would predict creation of the EU in the 1990s, Britain that these growth rates represent the became less prominent in European “new normal”.

A shifting global economy(10)

1.5% to 5.5% 3x... 20% to 35%

Potential reduction in ... the projected size of the The increase in Asia UK GDP growth by global economy in 2021 Pacifi c’s share of global 2020 stemming from in dollar terms compared GDP from 1980 to 2016. the Brexit decision. with 2000. 09

Despite this solid performance in “developed” economies, we should The growth of people’s living expect the Asia Pacifi c region – which is home to 60% of the world’s population – standards, particularly in traditional to increase its current share of global GDP

from 35%, while Africa and the Middle industries, has been fairly weak and East increasingly become the real motors of future economic growth. fairly low. Andrew Sentance Senior Economic Adviser, PwC The impact of Brexit on these wider trends, as well as the economic impact on the world’s economies, will be negligible. However, the effect on the UK will undoubtedly be negative. PwC expects British GDP growth to slow to 1% in 2017. Depending on the kind of deal the UK strikes with the EU, PwC believes that by 2020 GDP will be lower than the pre-Brexit trajectory. Any potential benefi t for export businesses that might emerge from the fall in sterling will be more than offset by higher prices on imported goods for consumers.

Capitalising on global opportunities in the post-Brexit world Investment in the new world order will require an understanding of global economic movements, a focus on persistent underlying trends, and detailed analysis of micro-economic opportunities. Sentance noted that the inexorable shift of global economic power to Asia is a trend to capture, as is the rise of older age consumer groups in developed economies, as well as in China.

Sentance concluded, “Before the fi nancial crisis, there were some very strong tail winds, particularly from the expansion of credit but also from the impacts of globalisation sweeping through the world economy. [Those] big macro- tailwinds to a large extent have gone away… it’s digging down into the micro- economic opportunities that’s going to be important.” 10 Apax Partners KnowledgeNow 2016

Shifting foundations in a turbulent world continued

The art of disagreeing and fi nding While the future of politics may be headed The view common ground, as well as building for uncertainty and potential gridlock, a strong team, are keys to success in Boehner had encouraging words about politics and business, John Boehner, US businesses. Based on his experience from the Hill former speaker of the US House of on the road fundraising for businesses Representatives, said in an interview from auto dealers to dry cleaners, Boehner with John Boehner, 53rd Speaker with Apax’s own Seth Brody on the asserted that the picture on the ground theme of America’s Political Foundations was often very different from the view in of the United States House of and the Presidential Election of 2016. Washington. “I would argue America’s Representatives economy is a lot stronger than America’s Voters frustrated by weak economy political process,” Boehner said. “I’m Speaking ahead of the US presidential optimistic about America, and eventually election on 8 November, in which the political process. People will calm Republican candidate Donald Trump down. We’ll have new leaders who swept to power, Boehner said the weak can lead. And they’ll get back on track. economy was a major contributor to the But right now, it ain’t going to happen political situation in the US. “There’s a any time soon.” great deal of frustration in our country, Learning to disagree without and frankly I think elsewhere around being disagreeable the world; mostly stemming from the economic collapse, and the inability of Growing up as part of a large working- the world to refl ate and grow the world class family in Cincinnati, Ohio, armed economy,” he said. Boehner with the fundamental skills needed to make his way in politics. Due to the level of political ill will that Dealing with tricky customers at characterised the whole campaign, he the family-operated tavern while predicted that either candidate would simultaneously getting along with eight struggle to pass laws in Congress. As a brothers and three sisters provided him result, the majority of issues will go before with essential experience for his political the Supreme Court. With a vacant seat career. “The art of being able to disagree, in the court, the president’s selection without being disagreeable. That’s of potential justices is a decisive factor something that probably helped me between Trump and Clinton. more throughout my political career than anything else I ever learned,” he said.

The art of being able to disagree, without being disagreeable. That’s something that probably helped me more throughout my political career

than anything else I ever learned. 11

Before politics, Boehner gained He was also critical of the government There’s a great deal professional experience in the plastics practice of running a budget defi cit, and packaging business. “There’s one which he likened to children paying for of frustration in our big lesson that I learned during my their parents’ purchases on credit. business career, and that’s take your team country, and frankly and make sure it’s a team,” Boehner said. Turning to the other side of the pond, he As Speaker of the House, he had a staff had a more positive message for the UK I think elsewhere of about 85 people with united goals and following its Brexit vote in June. If Britain principles. He conducted regular team- can seal a free trade agreement with the around the world; building retreats and exercises to maintain US ahead of the EU, which continues team cohesion among existing employees to struggle to set terms, then it would mostly stemming and new recruits. strengthen its hand in negotiations with the other European nations, Boehner said. from the economic Navigating economic and collapse, and the trade challenges Boehner praised America’s entrepreneurs I would argue that inability of the world who deal with the political landscape in front of them while advocating a smaller America’s economy

to refl ate and grow state as a route to a healthier economy. is a lot stronger than However, he still saw signifi cant fi nancial the world economy. threats. “I think the greatest threat to the

economy today is the risk of defl ation. America’s political All over Europe, the United States, China, everybody’s been involved in trying to process. avoid defl ation for the last eight years. And we have shot virtually every bullet in trying to avert this,” Boehner said. 12 Apax Partners KnowledgeNow 2016

KnowledgeNow: Future Foundations Building the future for growth Leaders from across the Apax Fund portfolio share operational insights on how to build solid platforms for success in turbulent and challenging times. 13 14 Apax Partners KnowledgeNow 2016

Building the future for growth continued

Differentiation is the key to transforming That means overcoming the legacy Follow your an iconic American brand into the next mind-set and challenging the ways big global lifestyle brand, Kyle Leahy, things have been done in the past. EVP and GM for North America at Cole North Star Haan, explained in her presentation Differentiation at the heart of Building a consumer-driven brand and brand positioning with Kyle Leahy, Executive Vice product strategy. With markets more competitive and President and General Manager The hundred-year-old start-up consumer demands higher than ever, of North America, Cole Haan standing out from the crowd is the key to Cole Haan’s acquisition by Apax Funds in Cole Haan’s strategy. This differentiation 2013 and subsequent carve-out from Nike is defi ned by three components: brand was the catalyst for huge change at the US authenticity, market opportunity, and footwear company. It involved rebuilding cultural and consumer insight. By the entire management team in multiple reconsidering its brand strategy, Cole phases, a complete overhaul of product Haan arrived at a competitive advantage lines and establishing new platforms for defi ned as Elegant Innovation. This future growth including digital. In short, a cross-market positioning allows the complete reset of the company’s direction. company to compete in a much larger This “North Star” strategy aimed to market, with performance sportswear transform the business from a multi- brands as well as fashion brands. million-dollar footwear company into “Consumers have responded so strongly a multi-billion-dollar lifestyle brand. that it is validated for us that this is a North Star that we can continue to drive as a Leahy referred to Cole Haan as a sharp point for our company,” Leahy said. “hundred-year-old start-up”. She Sales of shoes developed under its explained: “We are lucky to be stewards GRAND.ØS technology design initiative of this great American brand. But it have grown to some 1.5 million pairs in requires that we really rethink how we the last 18 months. operate, how we’re going to compete.”

Key takeaways from Cole Haan journey

Question the traditional Defi ne your competitive Invest and plan to meet way of doing things at advantage by understanding your North Star strategy your business your brand, your consumer and your market 15

For inspiration, Cole Haan delved deep Delivering against a North Star strategy Addressable markets(11) into its long history of design innovation, which included developing ergonomically Having defi ned its market and set its North designed golf shoes in the 1940s. It also Star, Cole Haan is now delivering against 8x looked at changing consumer trends, as its aims. Leahy explained how it requires patience and clarity of message, as well as The increase in Cole Haan’s well carefully analysing feedback from addressable market customers to really understand their an ability to fi ne tune the strategy over time. The company has changed its perceptions of the brand and what (12) they expected. product architecture and is planning far Innovation ahead with new collections for 2018 Finally, it investigated the market seasons that will meet its customers’ opportunity. “‘Fish where the fi sh are’ is expectations. “We’ve tilted our investment 1.5 million a phrase we use a lot when we think about to be able to deliver against this North Star. The number of shoes sold under Cole our strategy development,” Leahy said. It’s informed the type of talent that we’ve Haan’s GRAND.ØS innovation programs As a result, Cole Haan broadened its focus acquired, the resources that we’ve built,” in the last 18 months from the dress shoe category, worth some Leahy said. $8 billion at the time of acquisition, to incorporate casual and lifestyle categories, As part of this drive to cement this market in the process boosting its potential market leadership position, Cole Haan has built opportunity to $100 billion. an innovation centre at its New Hampshire headquarters where it has industrial engineers, rapid prototyping and 3D printing. “It’s been a tremendous proof point for us around not just talking the talk, but walking the walk on bringing innovation,” Leahy added.

We are lucky to be stewards of this great American brand. But it requires that we really rethink how we operate, how we’re going to compete. 16 Apax Partners KnowledgeNow 2016

Building the future for growth continued

Choosing the right people, defi ning Setting clear criteria for each job makes Mapping career their career development potential, it easier to assess staff performance and and providing detailed feedback on create potential goals. The evaluation of performance can help retain employees leadership potential and subsequent paths to a and minimise costs from unnecessary succession planning should be more open staff turnover, explained Greg Kayata, and transparent. This also requires that stronger future SVP of Human Resources at Acelity. those not picked for internal moves should be given clear feedback on what is needed Staff turnover can place high costs on to progress. “I’d argue if you’re doing with Greg Kayata, Senior Vice a business through lost revenue and those fi rst three things appropriately, then President of Human Resources, Acelity recruitment fees for new hires. By the retention will follow,” Kayata explained. improving management that identifi es how employees can progress through the Acelity is witnessing the benefi ts of this company, staff are likely to stay on board approach, with turnover of new hires in for longer, reducing costs to businesses. fi eld services down to zero this year and staff willingness to recommend the Since joining Acelity two years ago, Kayata company on the rise. has spearheaded a new human resources plan that focuses on four key areas: selection, development, performance Reducing staff turnover costs and retention. In the fi rst instance, better selection means more standardised Selection interview processes and success profi les Defi ne the role and that defi ne what is needed for each role standardise interviews from the outset. This is followed by creating development plans to focus on Development how those staff can progress through the PPlan career paths too enaable company, mapping out potential routes sstaff pprogression and roles they can take in the future. Performance Give clear feedback on how to move forward

Retention Get the fi rst three right and retention will follow!

I’d argue if you’re Acelity turnover for new hires in fi eld services(13) doing those fi rst three things appropriately, 2014 16.4% then the retention 2015 1% will follow. 2016 0% (end-October)

0% 4% 8% 12% 16% 20% 17

Defi ning a new business pricing model The third point was to set company The price of required staff change and a new objectives and key results that were company mind-set that ultimately transparent and to let people take charge. delivered better results, Bankrate.com “You really have to let go and push change CEO Scott Kim explained. empowerment and ownership down the organisation,” Kim said. Finally, Financial product comparison website with Scott Kim, CEO, Bankrate.com Bankrate.com moved to Agile and Scrum Bankrate.com threw out its old fl at rate methodologies to increase velocity – pricing chart and switched to one based it made mistakes but was able to focus on data analysis tailored to individual on what was really important. searches. Through detailed analysis, the company identifi ed seven key dimensions The result was a 48% jump in the top line that highlighted the consumers most likely – Q2 2016 revenues grew to $10.3 million to actually take out mortgages. The new from $7.0 million the previous year. algorithmic model based on this data generates about 1,500 different prices (14) and crucially demonstrates to advertisers Top line revenue increase that the higher the ad price they pay, the greater the likelihood of a loan agreement.

Implementing the new model required $10.3m a four-point plan. In the fi rst instance, Bankrate.com put data into its DNA. Not only did it create a data centre and a business intelligence team, it also put 48% the head of data in charge of product management, meaning the ethos $7m fi ltered through the organisation. Then Bankrate.com needed to break the inertia of the traditional way of doing things. Q2 2015 Q2 2016

You really have Correlation of price and probability of lead(14) to let go and push 18.0% empowerment and 16.0%

ownership down 14.0% the organisation. 12.0%

10.0%

8.0%

Raise in Q2 2016 6.0% mortgage revenues 4.0%

2.0%

48% 0.0% $0.000 $2.000 $4.000 $6.000 $8.000 $10.000 $12.000

Algorithmic pricing Linear (algorithmic pricing) 18 Apax Partners KnowledgeNow 2016

Building the future for growth continued

Establishing standalone working practices Managing people Building while ensuring continuity for customers and staff are central to company carve- In the case of Duck Creek, a specialist outs, explained Aptos CEO Noel Goggin, software company that was strength in Duck Creek Technologies COO Matt spun out of Accenture, the main issue Foster and Vyaire Medical CIO Vid Desai. was managing the expectations of the carve-out employees at the large process-driven Taking control former parent. Some 400 people at Accenture were aware of and involved in situations Aptos’s ownership by Epicor, a software the evolution of Duck Creek. “One of and services group previously owned by the big challenges was trying to keep Apax Funds, meant the spin-out process everybody in a similar orbit and keeping with Noel Goggin, CEO, Aptos; could be concluded in just 60 days. This them informed,” Foster said. In hindsight, Matt Foster, COO, Duck Creek situation allowed the company to think he wishes he had more selfi shly Technologies; Vid Desai, CIO, differently about priorities. “We had to concentrated on the future priorities of Vyaire Medical build all this stuff from scratch. So it gave the company rather than managing the us a tremendous opportunity to actually separation process. do things differently from the start,” Goggin said. Aptos chose not to establish Meanwhile, the carve-out of Aptos a large in-house IT team and infrastructure energised many staff, but also identifi ed but instead to go down a 100% SAAS people who would hold the company route, which also felt right for a “scrappy, back. Aptos turned over 20% of start-up-oriented organisation”. employees in the fi rst year. It holds weekly company meetings to get the staff more However, the desire for speed must also on-board with changes. “We can’t do be balanced with other considerations. enough communication of the right Vyaire’s mantra to “do no harm” refl ects behaviours internally,” Goggin said. its focus on patient wellbeing for the respiratory devices carve-out from Existing customers and new Beckton Dickinson. opportunities Vyaire Medical has identifi ed opportunities to go after untapped customers in new markets. “About 85–90% of our revenues right now come from the US, so the international area is a huge growth opportunity,” Desai explained. At Duck Total time to spin Creek Technologies, that desire to go Aptos out of Epicor after new sources of revenue must also be balanced with the need to minimise 60 disruption for existing customers and days keeping them on board, Foster added.

We had to build all this stuff from scratch. So it gave us a tremendous opportunity to actually do things differently from the start. 19

Infl uencers on social media don’t need Beattie explained. “A lot of people have Extending your to be global mega-stars. The key to taken advantage of this and really built increasing brand awareness and followings around very specifi c topics, boosting sales is to understand your and developed very specifi c niche infl uence customers and work with infl uencers audiences,” he said. Those infl uencers that refl ect this audience, Rich Beattie, are driven by making money, but with Rich Beattie, Vice President, VP at Multiply explained. increasingly want to endorse quality products they believe in. Multiply The rapidly growing and increasingly mobile social media universe reaches Both consumer and B2B brands can billions. Facebook, the dominant platform, benefi t from infl uencers on social has 1.7 billion monthly active unique users. media – when it comes to targeting Better still, it has near 100% penetration the right audience, Beattie says the among 18–34-year olds, and is still the key is to “think small”. go-to site for 18–24-year olds, with half going straight to Facebook when they Beattie then went on to talk about the wake up. Subsequently, social media new evolutions in social media and how advertising is expected to reach these nascent developments could be €25 billion by 2021. harnessed by brands and infl uencers to further enhance their online presence. As social media grows, the role of “So what is next? Well, some of the things infl uencers in the space continues that I think are particularly interesting, to evolve. Famous names linked to Facebook 360 panoramas, Facebook Live commerce have been a tool used and Snapchat Stories. It’s all about Live throughout history – from Josiah now. You’re going to get even more bang Wedgwood using Royal endorsement for your buck with those”, he said. to sell crockery in the 18th century, to basketball star Michael Jordan’s There is a very relationship with Nike in the 1980s. While celebrity status still has pulling specifi c group you power, social media today enables anyone to create and share their own content should be targeting. online and become an infl uencer.

Social media users monthly in 2016(15)

0 250m 500m 750m 1bn 1.25bn 1.5bn1.75bn 2bn 20 Apax Partners KnowledgeNow 2016 21

KnowledgeNow: Future Foundations Putting the foundations in place: case studies for success Four real-life examples demonstrating how the OEP works with portfolio companies to drive change and unlock value 22 Apax Partners KnowledgeNow 2016

Putting the foundations in place: case studies for success continued

Reaching potential customers directly Ideal Protein built a new front-end user A recipe for was a new opportunity for B2B weight experience for the program including loss program Ideal Protein. Through a multivariate-ready website landing pages, clear plan, selective testing and systems a clinic locator solution, and online winning new to attract and track potential leads, the reservation fl ow – additionally, the company was able to prove that a B2C company leveraged an off-the-shelf customers initiative could be a cost effective way analytics solution, Google Analytics, of growing the customer base. coupled with proprietary lead tracking and CRM solutions to track and manage with Jon Simmons, Operating Ideal Protein’s science-based approach the distribution of leads through to Executive, Apax Partners to weight loss has relied on medical clinics. After the components of the lead professionals at 3,000 independent clinics generation funnel were built, the marketing across the US and Canada recommending program was activated on Google and the plan to end-customers. While it has Facebook in two key test markets, achieved great results for individuals, the Chicago and Washington DC. “Out of the B2B set-up meant that the number of gate, let’s just see if we can actually drive dieters was limited by clinics’ priorities some leads in this very, very competitive and their own ability to grow their marketplace,” Jon Simmons explained. customer bases. In the fi rst few months, the B2C initiative The company wanted to test into new generated good progress on new leads, channels such as search engines and and a rapidly declining cost per new lead. social platforms to grow its customer base, but needed to understand if the The upshot is that Ideal Protein identifi ed cost of the new approach would be viable the cost of acquiring a new customer in the long run. Apax and Ideal Protein B2C and proved it could make a return management worked together to defi ne on investment. “We learned that this key performance indicators – cost per lead, is a viable channel for us,” explained and cost per dieter – to measure overall Simmons. The initiative has also provided program success, and built a multi-step lessons on how the company can boost lead generation funnel designed to its B2B business by improving the way it generate leads, and convert those leads interacts with clinics. into new customers.

Out of the gate, let’s just see if we can actually drive some leads in this very, very competitive marketplace. 23

“The reality for any company is you that could be sustainable in the longer Preparing for don’t know when or if [an exit event] will run. The result? GlobalLogic has reduced happen, but it’s really good to prepare the turnaround on monthly accounts to when you’re getting large and growing ten days from seventeen. It also extended public markets quickly,” Doug Ahrens said. GlobalLogic forecasting from one or two quarters to drew on the experience of Apax’s fi ve, and beefed up revenue controls by with Doug Ahrens, CFO, GlobalLogic Operational Excellence team and preferred linking with banks to receive automatic vendor Alvarez & Marsal for the process. balance updates. Whatever the eventual The exit readiness project highlighted exit route, the preparations have been three areas for improvement at the important and healthy, Ahrens concluded. company: faster turnaround of monthly accounts, better and longer-term forecasting, and improved fi nancial and revenue controls.

The project required increased IT resources, daily progress reports and weekly meetings among key GlobalLogic management, extensive internal communications with staff and a program sponsor on the executive team – in this case Ahrens himself. External help enabled the company to push through changes, while continuing on its high- growth trajectory, and set up processes

The reality for any company is you don’t know when or if [an exit event] will happen, but it’s really good to prepare when you’re getting large and growing quickly. 24 Apax Partners KnowledgeNow 2016

Putting the foundations in place: case studies for success continued

Quality Distribution needed a complete Following a competitive tender, the Health and overhaul of environmental, and health and company selected an appropriate software safety standards following the acquisition vendor to transform its tracking and by Funds advised by Apax in 2015. reporting processes. The system goes safety as a One year on, the company stands out live in early 2017 and will standardise as one the most safety-conscious procedures, including reporting and value driver chemical transport companies. analysis. It will allow the company to identify weaknesses and automate During the due diligence process, Apax processes. And crucially, it will enable with Cliff Dixon, Vice President challenged Quality Distribution’s manual the company to avoid potential fi nes, of , reporting of its handling of chemicals and cut down on legal fees related to Quality Distribution and other hazardous materials. Most compliance issues. “If we avoid just a environmental information was kept couple of those things, that easily pays on spreadsheets and in the head of just for the whole implementation of an one individual. The lack of processes EH&S solution. So it really becomes occasionally sucked internal time and a no-brainer from that standpoint,” resources from other priority projects. Cliff Dixon explained. The Operational Excellence team helped design an initiative to make environmental, and health and safety processes more transparent, improve governance to ensure compliance with regulations and automate processes. Quality Distribution documented procedures for operations in all key areas and set up a cross-functional team to take reporting off spreadsheets and into an automated system.

Harmonising One Call Care The customer experience at One Call Putting Management’s six distinct IT systems Care Management, a US company threatened to be a costly and time- managing medical compensation claims, consuming process. Apax and was complex and at odds with the customers company management focused on name. In order to increase satisfaction, customers to design an integrated One Call settled on an “outside in” at the heart system that can generate synergies approach that would focus on improving and transform the business. customer-facing systems fi rst, followed by a rebuild of the less visible back-end of systems functions over time. planning

with Sal Caruso, CIO, One Call Care Management, and Nick Iozzo, Operating Adviser, Apax Partners 25

Apax’s network of contacts and portfolio By outsourcing IT infrastructure suppliers, Using the companies helped Exact improve Exact was able to reduce costs and procurement and understand best improve quality, without any negative practice. The software company is on impact on the company or its users. Apax Portfolio track to have increased procurement The company was also able to benefi t savings four-fold since before the takeover from experience within the group to Effi ciency last year. secure licensing deals and contracts with Salesforce and Microsoft. In addition, Realising cost savings in a fast-growing Exact has come to understand all the platform to company in which procurement is not constituents of its carbon footprint – a strategic function can be challenging. including lease cars and offi ces – and get “large But Apax’s expertise, as well as contacts has developed a plan to improve. with other companies in the portfolio, has helped transform Exact’s procurement The benefi t to the bottom line is clear. company” function into that of a large company From cost savings of $500,000 in 2014, without hiring new people or going the company achieved $1.5 million in 2015 procurement through costly and time-consuming and made savings of over $2 million even tenders for outside consultants. “We do before 2016 was out. Edward Burgers have a lot of knowledge in all the portfolio with , Procurement companies, and the team has really & Facilities Manager, Exact Software brought that together and made it available to us,” Edward Burgers explained.

The fi rst step was for the company to One Call has completed planning and is talk to some of its users and defi ne their now in the build phase. In addition, it has needs. “You don’t spend months thinking brought forward consolidation of its Oracle about this; you spend a week and it’s a E-Business Suite applications. The wider gauntlet,” Nick Iozzo said. Next, One Call business has bought into the process and prepared rough and ready designs to is aligning with IT. “We don’t consider this show to customers, which it was then an IT project. It’s a business transformation able to transform into a prototype for project of which IT is a key partner,” Sal more detailed feedback. Caruso concluded.

We don’t consider this an IT project. It’s a business transformation project of which IT is a key partner. 26 Apax Partners KnowledgeNow 2016

Attendees

Conference speakers Doug Ahrens Vid Desai Greg Kayata CFO, GlobalLogic CIO, Vyaire Medical Senior Vice President of Human Resources, Acelity Rich Beattie Cliff Dixon Vice President, Multiply Vice President of Information Scott Kim Technology, Quality Distribution CEO, Bankrate.com John Boehner 53rd Speaker of the Onur Erzan Kyle Leahy United States House of Partner, McKinsey & Company Executive Vice President Representatives and General Manager of Matt Foster North America, Cole Haan Seth Brody COO, Duck Creek Technologies Partner and Global Head of the Jason Phillips Noel Goggin Operational Excellence Practice, Partner, McKinsey & Company CEO, Aptos Apax Partners Andrew Sentance Nico Hansen Edward Burgers Senior Economic Adviser, PwC Chief Investment Offi cer, Procurement & Facilities Apax Partners Andrew Sillitoe Manager, Exact Software Co-CEO, Apax Partners Nick Iozzo Sal Caruso Operating Adviser, Jon Simmons CIO, One Call Care Apax Partners Operating Executive, Management Apax Partners

Conference attendees Connie Adair Blake Booysen Paul de Janosi CEO, Taylor Winfi eld CFO, Wehkamp Group Senior Managing Director, SSA & Company Ameya Agge Seth Brody Principal, Apax Partners Partner and Global Head of Ellen de Kreij the Operational Excellence Operating Adviser, Doug Ahrens Practice, Apax Partners Apax Partners CFO, GlobalLogic Arthur Brothag Vid Desai Nicolas Alfi n Principal, Apax Partners CIO, Vyaire Medical General Manager, Cosas De Barcos Fredrik Burger Cliff Dixon Partner, Ernst & Young Vice President of Information Nick Alvarez Technology, Quality Distribution Managing Director, Edward Burgers Alvarez & Marsal Procurement & Facilities Lynn Durant Manager, Exact Software Managing Director, Ian Atkins Taylor Winfi eld President, Dominion David Burgess Marine Media Operating Specialist, Frank Ehmer Apax Partners Partner, Apax Partners David E. Ball Senior Vice President of Sal Caruso John Elwood Operations, Acelity CIO, One Call Care Vice President, Global AWT Management Manufacturing, Acelity Brett Batchelder Senior Director Private Courtney Chalmers Fernando Encinar Equity, EMC Vice President of Marketing, CMO, idealista Dominion Marine Media Rich Beattie Jesus Encinar Vice President, Multiply Gabriele Cipparrone CEO, idealista Partner, Apax Partners Bryan Belanger Drubay Eric Vice President of Piet Coelewij Group CPO, Unilabs Technology, Ideal Protein CEO, Wehkamp Group Onur Erzan Mark Binney Dave Cook Partner, McKinsey & Company Partner, PwC Executive Chairman, Matt Foster TradeGlobal Michiel Boehmer COO, Duck Creek Technologies COO, Unilabs Jonny Crowe Paulo Freitas CEO, Wehkamp Group Martijn Bonte CFO and Director of Investor Business Development Martyn Curragh Relations, TIVIT Manager, Wehkamp Group CFO, PwC 27

Conference attendees continued

Bryan Gartner Dene Jones Wiljar Nesse Jon Simmons Principal, Apax Partners Customer intelligence Executive Vice President, EVRY Operating Executive, & experience director, Apax Partners Marcelo Gigliani Ajmal Noorani Wehkamp Group Partner, Apax Partners Senior Vice President & Shashank Singh Ashish Karandikar General Manager, Technology Partner, Apax Partners Jason Glaun Partner, Apax Partners Business, GlobalLogic Operating Adviser, Will Smith Enterprise Technology, Greg Kayata Or Offer Chief Product Offi cer, Apax Partners Senior Vice President of CEO, SimilarWeb One Call Care Management Human Resources, Acelity Noel Goggin Daniel O’Keefe Randy Strutz CEO, Aptos Scott Kim Partner, Apax Partners President, Quality Carriers, CEO, Bankrate.com Quality Distribution Gurdeep Grewal Cesar Oteiza Senior Vice President of & Al Koch COO, idealista Paul Tarvin GM Europe, GlobalLogic Managing Director, AlixPartners CEO, FULLBEAUTY Brands Neil Patel Marty Guinoo Onno Krap IT Director, Apax Partners Shivani Tejuja Operating Executive, CFO, Exact Group B.V. Operating Adviser, Digital , Milind Patwardhan Apax Partners Apax Partners Jessica Kuess Vice President, Strategic Genna Gwynn Vice President, Digital, Solutions, GlobalLogic Brendan Tobin AVP Sales Commerce Apax Partners Associate Director, Alex Pellegrini Cloud, Salesforce Macquarie Group Jos Lamers Partner, Apax Partners Rohan Haldea CEO, Unilabs Karlheinz/Charly Toni Laurent Peron Partner, Apax Partners CTO, Wehkamp Group Alex Langshur Regional Vice President, Tom Hall Co-founder, Senior Partner, Commerce Cloud, Salesforce Brett Trent Partner, Apax Partners Cardinal Path Chief Digital Offi cer, rue21 Jason Phillips Nico Hansen Amit Laud Partner, McKinsey & Company Erik Van der Meijden Chief Investment Offi cer, Managing Director, CEO, Exact Group B.V. Chaitanya Rajebahadur Apax Partners Alvarez & Marsal Senior Vice President Ervin Veszpremi Will Harman Kyle Leahy and Head of Europe, CEO, INVENT FARMA S.L. Operating Specialist, Executive Vice President Zensar Technologies Mark Vorbach Apax Partners and General Manager of Brad Ramsey Managing Director, North America, Cole Haan Paul Harrington Vice President of Sales, Macquarie Group Senior Director, Jeffrey Liss North America, Vivek Vyas Private Equity, SAP Executive Vice President, Dominion Marine Media Principal, Apax Partners Chief Digital Offi cer, Dan Hatola Micha Ronen FULLBEAUTY Brands Chris Watson Chief Marketing Offi cer, CEO, Schulz Catering Ltd. COO, One Call Care FULLBEAUTY Brands Velina Luhur Indranil RoyChoudhury Management Sr. Associate, Portfolio Thomas Helmreich Senior Vice President of Effi ciency, Apax Partners Jill Watts CFO, Takko Fashion GmbH Enterprise Sales Leader, Group CEO, BMI Healthcare Chris Mason Zensar Technologies Michael Holland CEO & Co-Founder, Michael Weyrich CIO, rue21 Shashank Samant Branding Brand Partner & Managing Director, President & CEO, GlobalLogic Charles Honnywill Alix Partners Arshad Matin Partner, Ernst & Young Regenia Sanders CEO, Paradigm Edmund Williams Vice President, Supply Chain Dawn Hu Independent non-executive Robin Muerer & Business Technology, Vice President, Apax Partners director, idealista Principal, Apax Partners SSA & Company Gary Hughes Ilan Zachi David Mulligan Ray Schnell Operating Adviser, CEO, Zap Group CIO, Acelity Global Coverage Offi cer, ADP Apax Partners Lenny Nash Rebecca Sheehan Nick Iozzo Chief Strategy Offi cer, ForeSee Senior Director, Business Operating Adviser, Development, Concur Apax Partners Salim Nathoo Technologies, an SAP company Partner, Apax Partners Michael Jackowski Andrew Sillitoe CEO, Duck Creek Technologies Co-CEO, Apax Partners 28 Apax Partners KnowledgeNow 2016

(16)

Operational Excellence practice Seth Brody Seth Brody is a Partner and Global Head of the Netmarket Group, Inc. Seth has served in numerous Partner and Global Operational Excellence Practice (“OEP”). He has been interim management positions across the Apax Fund with Apax since 2008, based in the New York offi ce. portfolio including roles as the Chief Information Head of the Operational He is responsible for the strategy and development Offi cer at Netrada Management GmbH and Chief Excellence Practice of the OEP team and the evolution of its capabilities. Marketing Offi cer at Trader Canada Corporation. Seth serves on the boards of directors for His prior industry operating experience includes roles FULLBEAUTY Brands, Aptos and for Bankrate, Inc. as Executive Vice President and General Manager at (NYSE:RATE). He has served as a director and adviser Razorgator Interactive Group, as Group Vice President to numerous growth companies in the digital space. and General Manager at Orbitz Worldwide, Director of He received his BA from Yale University and his MBA Marketing at priceline.com, and Product Manager at from Harvard Business School. Jon Simmons Jon Simmons is an Operating Executive in the Media, an online lead aggregator in the travel Operating Executive, Operational Excellence group. He joined Apax industry, and also held various positions at Partners in 2012 and is based in New York. priceline.com. Jon serves on the board of Digital directors for Dominion Marine Media. Prior to joining Apax, Jon was the Founder and Principal at Clearsearch Media, where he led digital Jon holds a BA in Economics and German from strategy for a diverse portfolio of clients ranging Middlebury College. from early stage ventures to global companies. Prior to founding Clearsearch in 2006, Jon was the Director of Marketing Operations at Walkaway

Marty Guinoo Marty Guinoo is an Operating Executive in the Marty’s prior industry operating experience Operating Executive Operational Excellence Practice. He joined included management positions at priceline.com Apax Partners in 2016 and is currently based in and Starwood Hotels. the New York offi ce. Marty holds a BA from Harvard College. Prior to joining Apax Partners, Marty had over 10 years of experience running and selling assets for private equity. During that time, he was the CEO of Sentient Jet and President of Icon Parking Systems.

Will Harman Will Harman is an Operating Specialist in the Will was previously a supply chain consultant at Operating Specialist, Operational Excellence team. He joined Apax PwC and has led major procurement programmes Partners in 2014 and is currently based in London. at Jaguar Land Rover. Portfolio Effi ciency Prior to joining Apax Partners, Will worked for Will holds a Master’s degree by Research from PA Consulting Group where he led procurement Warwick Business School, an MA in International restructuring, cost reduction and supply chain risk Relations from Bristol University and a BSc in management programmes for clients including Economics and Politics from Bath University. BP, BAE Systems and Aston Martin.

Jessica Kuess Jessica Kuess is a Digital Associate in the Operational Jessica holds a BBA from the Stephen M. Ross Vice President, Digital(17) Excellence group. She joined Apax Partners in 2014 School of Business at the University of Michigan. and is currently based in New York. Prior to joining Apax Partners, Jessica was a member of the Strategic Development team in Ralph Lauren’s Global Digital and e-commerce Group. She also worked as an Associate and Analyst at Citigroup in the Global Industrial Group in New York.

Velina Luhur Velina Luhur is a Sr. Associate in the Portfolio Velina holds a BSFS in International Political Economy Sr. Associate, Effi ciency practice of the Operational Excellence from the Edmund A. Walsh School of Foreign Service (17) team. She joined Apax Partners in 2015 and is at Georgetown University. Portfolio Effi ciency currently based in New York. Prior to joining Apax Partners, Velina was a member of the Central Procurement and Profi t Improvement team at J.Crew, where she led cross-functional cost reduction and process improvement initiatives. She also worked as a Procurement Strategy Manager at ANN INC. and as a procurement consultant at GEP. 29

Operational Excellence practice continued Gary Hughes Gary Hughes joined the Operational Excellence He is currently a non-executive director of Booker Operating Adviser team at Apax as an Adviser in October 2012 Group plc, Premier Farnell plc, Majid al Futtaim LLP, following an extensive career in both the public SECC Limited and the Scottish Football Association. and private equity markets. He is also an Apax representative on the board of General Healthcare Group Limited. His career has Gary is an experienced international operator and taken him from investment banking to various roles at Apax works with our deal teams on operational across the FMCG, international hotel, media and pre-acquisition due diligence; with portfolio gaming sectors. companies on business effi ciency, change and transformation and 100-day planning; and provides interim management support where needed.

Jason Glaun Jason Glaun is an Operating Adviser in the law and consulting industries. Holding previous Operating Adviser, Operational Excellence team, having previously operating positions at board and executive level, held the role of Interim Global Technology Director his speciality areas revolve around supply chain, Enterprise Technology at Apax Partners. business operations and technology. Prior to joining Apax as an adviser in 2009, Jason Jason holds a postgraduate Diploma in Commerce founded a management consulting business in & Industry and an MBA in Technology Management the Channel Islands. He has operated in the retail, from the Open University. digital, technology, alternative investments, fi nance,

Shivani Tejuja Shivani Tejuja joined Apax Partners in 2014 as Expedia and Voyages-SNCF – Expedia’s joint Operating Adviser, an adviser in the Operational Excellence team. venture with the French national train operator. Digital Retail Prior to joining Apax, Shivani was Multichannel Since joining the Apax team, Shivani has supported Director of New Look, strategising this dynamic digital growth initiatives at rue21, Takko, Karl fast-fashion brand’s customer experience and Lagerfeld, Rhiag and FullBeauty brands. growing its digital business over 50% year-on-year. Shivani holds a BA in Economics from the She has held senior management roles and University of Pennsylvania and an MBA from directorships at a host of major brands in the US London Business School. and Europe, including Microsoft, Starbucks, Amazon,

Nick Iozzo Nick Iozzo has nearly 20 years’ experience in user Orbitz as well as about 40 other start-up and Operating Adviser, experience and product management of internet- established companies. based software. User Experience Currently, he works exclusively with Apax Partners Nick’s speciality is in managing the design and and provides assistance to portfolio companies roll-out of disruptive technologies. During most of his looking for help in managing disruptive technologies, career, he established and led the user experience improving the usability of their products, or helping practice for three different consulting companies, them bring design thinking to their product working for companies like Hallmark, Victoria’s management process. Secret, Travelocity, Fisher Scientifi c, GSK and

Ellen de Kreij Ellen de Kreij is responsible for the implementation Prior to joining Apax Partners, Ellen worked as an Operating Adviser, of the Apax Partners Sustainability Programme and is investment banker in the Mergers & Acquisitions a member of the Apax Operational Excellence team. teams at Merrill Lynch and Broadview International, Sustainability Initiatives where she specialised in advising transactions in the Ellen joined Apax Partners in 2002 as Director of Technology sector. Deal Generation and became a Director in the Investor Relations team in early 2010 with Ellen holds an MA in Dutch Civil Law and an MBA a particular focus on European investors. from Harvard Business School.

David Burgess David Burgess joined the Operational Excellence at Verizon Wireless, delivering transformational Operating Specialist, group in 2015 as an Operating Specialist focused change, triple digit growth and multi-million-dollar on Search Technologies. revenues from the Organic Search channel. Search Technologies Prior to joining Apax, David acted as President of Prior to moving to the US in 2012, he acted as Ayima, a specialist search engine optimisation lead consultant for FTSE 100 clients in the most (SEO) agency. David grew the offi ce from inception, competitive search verticals, including O2 and building an industry-leading team of SEO experts Marks & Spencer. He is an expert in e-commerce and winning Fortune 100 clients including Verizon, platform optimisation including Oracle Commerce Sports Illustrated and MGM Resorts. A technical & Demandware. David holds a BSc in Human SEO expert, David spearheaded the SEO Program Sciences from University College London. 30 Apax Partners KnowledgeNow 2016

The structure and capabilities in-house team with a powerful Distinct of the OEP have evolved to network of fi t-for-purpose meet the needs of deal teams “preferred partners”. These approach and portfolio company efforts are augmented with executives over time. There a coordinated process for are currently seven vertical best practice sharing and practice areas, which have cross-portfolio networking, DISTINCT been developed based on the called “KnowledgeNow”, evolving nature of the growth and innovative tools and APPROACH opportunities and challenges technologies developed we face in our investments. to accelerate growth The OEP combines the across the portfolio using experiences of its distinctive big data analytics.

The OEP is comprised largely value of their relationships. PROPRIETARY Proprietary of former executives. The The OEP practice leaders team’s work in due diligence view it as an extension of their TOOLS & tools & and across the global portfolio mission to not only support technology puts them in contact with deal teams and executives TECHNOLOGY operators on a daily basis. during a particular project, Those executives are but to empower them with engaged in the constant effort connections, tools and to bring products to market, technologies that can be leverage their data to make used to drive performance decisions and maximise the on a daily basis.

KnowledgeNow through the ages

KnowledgeNow 2012 KnowledgeNow 2013 KnowledgeNow 2014 “Building a focus factory” “Branching out” “Enterprise Tomorrow” New York London Las Vegas 21 portfolio companies 26 portfolio companies 24 portfolio companies 12 preferred partners 15 preferred partners 17 preferred partners 100 attendees 87 attendees 89 attendees 31

The OEP team is comprised The group operates with Specialised of operating professionals a global remit, travelling who bring diverse experiences frequently to engage directly team and backgrounds to our on projects and initiatives vertical practice areas from alongside portfolio executives some of the world’s leading and investment professionals. SPECIALISED organisations. TEAM

PORTFOLIO The power of the Apax operating knowledge and Portfolio network is formidable. commercial experience SCALE Companies in the portfolio on hand. scale employ more than 150,000 The OEP team has access to people around the globe who this knowledge base through conduct business in nearly its global engagements. every conceivable market. There is a vast wealth of

KnowledgeNow 2015 KnowledgeNow 2016 “Playing Offense” “Future Foundations” Miami Barcelona 27 portfolio companies 28 portfolio companies 21 preferred partners 15 preferred partners 130 attendees 120 attendees 32 Apax Partners KnowledgeNow 2016

(1) 1 November 2015 to 31 October 2016. management fees, , expenses, taxes, the actual realised returns on unrealised investments (2) Contract value and savings calculations since inception the value of any uplift in respect of the equity owned by a may differ materially from the returns indicated herein. of Portfolio Effi ciency / Procurement practice through portfolio company’s management and/or board of directors, In certain instances, the Gross IRR shown is a Concurrent 31 October 2016. transaction costs in connection with the disposition of IRR, meaning a gross annual IRR, calculated as if the fi rst (3) Contract value established between Apax portfolio unrealised investments and any other fees or expenses cash fl ow associated with all investments occurred in the companies through 31 March 2016 including iGATE, Epicor, that are borne by the relevant Apax Funds or its investors, same month. Garda, Travelex, GlobalLogic, Tradeglobal, Sophos. all of which will reduce returns and, in the aggregate, are (6) Source: Bloomberg. (4) The realisations fi gure is from 1 January 2014 to expected to be substantial). Net IRRs and net MOICs (7) Source: Factset. 30 September 2016 and is pro-forma for the closed (otherwise referred to in this Presentation as “T VPIs” (or (8) Source: S&P Capital IQ. Includes fees and expenses. realisations of Plantasjen, Idealista, and and total value to paid-in capital)) are after all management fees, Presented by Nico Hansen, Apax Partners. signed exit of Sisal (post-30 September 2016). The fi gure, carried interest and other expenses but do not include (9) Apax analysis. For a discussion on Apax’s current views on as of 30 September 2016, is converted to USDbn at the taxes or withholding or certain other expenses incurred by the implications of the ‘Leave’ vote and the likely process by FX rate prevalent at the end of each month in which the investors directly. “DPI” refers to distributions to paid-in which the UK may pursue an exit from the European Union, cashfl ows occurred. The $21.5bn of realisations fi gure capital. A description of such fees, “carried interest” and please refer to the Resource Library. Presented by Nico is based on all cash received, or expected to be received, expenses is or will be detailed in the relevant Apax Fund’s Hansen, Apax Partners. by the Apax Funds across all deals. agreements or offering documents (as (10) ONS and PwC forecasts and post-Brexit scenarios. (5) Returns calculated on EURm basis. Includes fully realised applicable), a summary of which will be furnished to each Presented by Andrew Sentance, PwC. investments; signed exit of Sisal and Plantasjen closed recipient upon request. Recipients of this Presentation may (11) The NPD Group Consumer Tracking Service, 12ME post-September 2016; and signifi cant partial realisations also obtain a hypothetical illustration of the effect of such October 2015 (includes men’s and women’s dress, casual, of Sophos, Capio and Garda, where the Apax Funds have fees, expenses and other charges on such returns. Unless sports leisure, outdoor, performance footwear and $12bn sold the majority of the shares originally held. For partial otherwise indicated, “Gross IRR” and “Net IRR” shall Kids Market); Accessories Magazine/The NPD Group, Inc. realisations, unrealised stake valued as of September 2016 mean the aggregate, compound, annual, gross or net, as 2015 Census Report. Men’s accessories represents an or exit event, whichever is more recent. For all fully realised applicable, internal rate of return on investments, calculated additional $2bn; The NPD Group, 2013. Presented by and signifi cant partial realisations, total costs associated on the basis of actual investment infl ows and outfl ows Kyle Leahy, Cole Haan. with each investment and realisations prior to 2014 are contributed by and distributed to investors. As presented (12) 1.5 million pairs, October 2014 – August 2016. Presented included in the returns calculation. Gross IRR calculated herein, IRRs and MOICs with respect to unrealised by Kyle Leahy, Cole Haan. on a concurrent basis (please refer to “Information with investments assume that such investments were sold for (13) ©2016 KCI Licensing, Inc., LifeCell Corporation, and/or respect to IRRs, MOICs and TVPIs” in Endnotes for further cash at their indicated unrealised values and the proceeds Systagenix Wound Management, Limited. All rights information). Refer to table of Fund Level Returns in End therefrom distributed to investors. Actual realised returns reserved. Presented by Greg Kayata, Acelity. Notes for Gross and Net MOIC & IRRs for funds containing on unrealised investments will depend on, among other (14) Source: Bankrate. Algorithmic Pricing as a Catalyst investments included in above fi gures. Realisations fi gures factors, future operating results, the value of the assets for Cultural Change. are pro-forma for the signed realisations in Sisal and closed and market conditions at the time of disposition, legal and (15) Source: https://www.dreamgrow.com/top-15-most- exit of Plantasjen post September 2016. Information contractual restrictions on transfer that may limit liquidity, popular-social-networking-sites/ with Respect to IRRs, MOICs, TVPIs and DPIs. Unless any related transaction costs, and the timing and manner (16) The Operational Excellence team as at otherwise indicated, all internal rates of return (“IRR”) and of sale, all of which may differ from the assumptions and 30 September 2016. multiples of invested capital (“MOIC”) in this Presentation circumstances on which the valuations used in the prior (17) Title as of 1 January 2017. are presented on a “gross” basis (i.e., they do not refl ect the performance data contained herein are based. Accordingly, Designed and produced by Friend. www.friendstudio.com This report has been printed on iprint comprising of paper from well managed forests and other controlled sources certifi ed by the FSC® and produced at mills with EMAS & ISO 14001 environmental management systems. Printed digitally by Pureprint Group without the use of fi lm separations, plates and associated processing chemicals. 99% of all dry waste associated with this production has been recycled. Pureprint Group is certifi cated to ISO 14001 environmental management systems, is registered to EMAS the Eco Management Audit Scheme, is a CarbonNeutral® Company and has been awarded The Queen’s Award for Enterprise: Sustainable Development. www.apax.com