KnowledgeNow Portfolio Support Group Conference 2012 New York, September 2012 Apax Partners KnowledgeNow Conference report 2012 01

The Apax Partners KnowledgeNow New York, Conference took place at The Sentry Centres in New York, on 5th and 6th September 2012 September 2012. Supporting our portfolio

Apax Partners (‘Apax’) is one of the world’s leading firms. Our funds invest across five sectors: Financial & Business Services, Healthcare, Media, & Consumer and Tech & Telecom. We use our deep sector expertise to help release the potential of the companies in which our funds invest. Vital to our success in this is our Portfolio Support Group (‘PSG’), which advises on key strategic and operational initiatives within portfolio companies to help drive value. The PSG complements our deal teams with different skills and expertise. It is a group of operating specialists with functional expertise in areas such as IT, recruitment, procurement and financing. The KnowledgeNow conference is a forum for sharing experiences and discussing the common challenges and opportunities our portfolio businesses face.

Watch our Portfolio Support Group film at What’s inside this report? In attendance... www.apax.com/news/video-library

Why KnowledgeNow? Building alignment Big Data Executives and partners 02 Maximising expertise across Apax’s 06 Tools to embrace rapid change, and 10 Driving results with innovation, portfolio. An overview from Seth create organisational focus. An open competition and productivity. 96 Brody, Partner, PSG, Apax Partners. discussion between global CEOs and Global CEOs, consultants and technology specialists. operational experts explore Portfolio companies many aspects of changes in data management and analytics. 19 Boxing clever on procurement Mobile internet Talent show 16 Increasing value through our 22 How change presents 26 Recruiting the best people. Global Representing... portfolio’s collective buying power. many challenges, but many more perspectives from two of the world’s Explaining ‘cost optimisation’ and opportunities. A view from our premier recruitment firms. Enterprise ‘digital analytics’ to drive greater value portfolio, where mobile consumer value invested in purchasing. behaviour is driving growth. $29bn+

Attendees About PSG About Apax Partners Employees 30 Delegates included leaders from 32 How the Portfolio Support Group 36 How we generate returns for our Apax’s portfolio companies, global adds value through scale. investors across five specialist sectors. 115,000+ experts in operations, and key partners who are driving efficiencies Meet the Apax Partners Portfolio across our portfolio. 34 Support Group team. 02 Apax Partners KnowledgeNow Conference report 2012 03

Introduction Why do we need

KnowledgeNow? Seth Brody Partner, PSG, Apax Partners

Maximising expertise across Apax’s portfolio companies. Apax Partner Seth Brody introduces the conference and outlines the benefits of sharing knowledge and experience across our portfolio.

In the ten months since our last gathering... +181% $220m+ $2.1bn+ 3 Avg growth in mobile Value of procurement Equity invested by Apax New Portfolio traffic at top 10 portfolio contracts optimised Partners’ funds Support Group hires company websites

As the owner of approximately 40 large companies based around the world, Apax Partners is well positioned to help you face these challenges by sharing knowledge gleaned at one company with others facing similar issues. Seth Brody Partner, PSG, Apax Partners 04 Apax Partners KnowledgeNow Conference report 2012 05

KnowledgeNow? continued The portfolio support team works with sector experts in our deal teams and our extensive network Recruitment of preferred suppliers to help drive lasting value. The Apax recruitment centre Seth Brody Partner, PSG, Apax Partners provides the PSG team with Online & access to international e-commerce leadership talent and Driving growth via website specialists which they can optimisation, traffic acquisition then recommend to portfolio and mobile applications. company management. Purchasing Read about advancing Read about talent on p26 Business intelligence The team is on hand to advise technologies on p22 The PSG supports Releasing the potential of There is also great strength in numbers, and on negotiations with suppliers Specialist expertise in mining data within the company to the Apax portfolio the Apax network is a powerful resource. Apax Partners’ proven and recommend the best strategy create actionable analytics The 19 portfolio companies that attended firms to work with. Business is changing with a daunting and key performance metrics. had a combined enterprise value of more Read about purchasing velocity, and those that fail to adapt will be Read about big data on p10 than $29bn, annual sales in excess of $26bn power on p16 left behind. Identify and over 115,000 employees. That Globalisation, the Internet, digitalisation, represents a lot of purchasing power. Apax has a well-established the explosion of data; these mega-trends investment selection process Knowledge Now are impacting businesses big and small and based on identifying companies in the €1–5bn size range with the pace is accelerating. Companies that The aim of our second Portfolio Support the potential for significant spent a decade getting online are going Group conference, on which this brochure future growth. mobile in a couple of years. In our own is based, was to bring together this vast portfolio, we have witnessed a 363% pool of operational expertise from across growth in mobile traffic in the last year. the portfolio to share best-practice and The reliable touch-points that used to network with professionals facing similar Support define your interaction with customers challenges. As the name suggests, The large sector teams work have now changed into a huge amorphous KnowledgeNow is about sharing embedded Read more about how closely with management Portfolio the PSG supports our soup of petabytes of data. How do you knowledge and generating practical ideas throughout the period of the store it? Mine it? Use it? Is it of any use? that can be implemented quickly. Support strategy in our latest investment to transform the Group What do our customers want? company. This is supplemented Annual Report. More than 100 senior level operators joined by the specific functional As the owner of approximately 40 large the Apax Portfolio Support Group and a expertise of the in-house companies based around the world, Apax select group of ‘preferred suppliers’ to Portfolio Support Group. Partners is well positioned to help you face brainstorm the major challenges and these challenges by sharing knowledge opportunities in global business. It was gleaned at one company with others facing our clear intention that this should not be a similar issues. talking shop; we wanted to demystify the minefield of hype and jargon to deliver Realise Supporting our portfolio practical insights that help drive growth Once the growth objectives It has built a team dedicated to helping or cut costs. have been achieved, we begin portfolio companies release their true discussions about the most As well as a chance to swap stories, war appropriate next owner of the potential by assisting them on specific wounds and best practice, it also gave our business. The average length areas. Be it devising a new mobile strategy, team an opportunity to showcase many of of an investment is around Information 100 day planning testing the sales effectiveness of a new five years. the projects that have already borne fruit technology The team assist the deal website or cutting procurement costs, teams with analysing the across the portfolio. Enables managers to unlock Apax has world class talent on offer so potential from their prospects for a new business that management is not left facing these Apax portfolio companies have a huge in IT infrastructure and and potential areas for improvement. challenges alone. resource at their disposal. The portfolio organisation. Operational finance Capital markets Provide expertise in budgeting, The team are able to support team works with sector experts This area of expertise will be This area of expertise will be The Portfolio Support Group (‘PSG’) is on cash management, and capital provide management and the in our deal teams and our extensive explored at future events explored at future events hand to help management drive value on spending optimisation. deal teams with access to network of preferred suppliers to help specialist knowledge on debt specific projects and, importantly, it does This area of expertise will be drive lasting value. structures and financing. so under their guidance. It is a team of explored at future events operational experts not a bunch of retired This brochure provides a snapshot of This area of expertise will be CEOs. It works with management not the topics and conversations that were explored at future events against it. discussed but it can only ever be a snapshot. We would love the opportunity to share the full picture with you and help your business release its true potential. 06 Apax Partners KnowledgeNow Conference report 2012 07

John Chair of Trader Canada, Former CEO Trader UK Seth Brody Partner, PSG, Apax Partners

Tom Evans CEO, Bankrate, Inc.

Jeff Boyd CEO, priceline.com

KnowledgeNow: Organisational focus Building alignment

Leading executives discuss the practical implications of building organisational focus. Tying in many of the themes that were touched on throughout the conference, we gathered three senior CEOs with plenty of scars on their backs for a wide-ranging discussion. Two themes stood out and chimed with many of the other conversations that were had over the two days, namely the importance of focus and talent. Jeff Boyd at priceline.com, Tom Evans at Bankrate and Trader’s John King discuss how to laser in on the things that really matter in such a fast-moving business environment. 08 Apax Partners KnowledgeNow Conference report 2012 09

Building alignment continued

Building the Focus Factory “If you aren’t thinking about selling hotel “I am an operator and I love to keep things Executing the Big Five: judgement about people, good judgement rooms when you come to work in the simple. I focus on five things that really The People Factor about behaviour and an ability to order The key role of the CEO is to rise above the morning, you are in the wrong place.” make a difference in the business so that priorities in a project.” noise and identify what is really important. The key to building the ‘Focus Factory’ that I can create an integrated focus to really Never has this been more so than in the In the wrong hands, this statement could will deliver these mission-critical projects is Getting the decision right on the person get behind these projects.” dynamic market in which modern digital have a very unsettling impact on staff who first in identifying the right team to execute you want to execute the project is even businesses operate. CEOs are facing a daily primarily thought they were in the business For King, the rule of five has borne fruit, and the job. For Evans, three factors are critical: more critical in the modern, digital business bombardment of competing and conflicting of airline ticket sales. While selling airline problems only started creeping in when the “Commitment, effort and judgement.” arena because of the pressure to get options. Their job is to identify which of tickets would clearly remain hugely team got too comfortable and started to things right first time or be left behind as Large projects in the kinds of businesses these options is critically important and important for some in the company, he push the envelope. “We have been very technology, and your customers, move on. being run by our panel are by their nature build a team that is capable of focusing and wanted them to think differently about the John King Chair of Trader Canada, successful executing against our list of five complex and likely to encounter pretty The Trader Canada case study later in the executing. Focus and talent therefore felt business, to change focus and mindset and Former CEO Trader UK priorities until last year when we got a bit major bumps in the road and this is where, report (see p25) illustrates all too well the like the crucial questions for our CEO panel envisage a different future. Boyd continues: cocky and thought, ‘this is easy – there is so A leading force for change in the publishing according to Evans, a real level of perils of execution failure in the digital to wrestle to the ground. “I wanted everybody to understand what much to do and we should push ourselves industry, John has helped to transform traditional commitment and ownership comes in: world. Boyd explains how this change is the fundamental thrust of the business was to do a bit more than five things.’ So we As we discussed in the introduction, the job print media businesses into digital media “I’ve never seen a project that goes impacting his thinking: “As we moved into going to be going forward so that even if came up with a big five priorities and a little of building this internal ‘Focus Factory’ was performance. John currently serves as the perfectly all the time or the way you’ve a more data enabled and digital world, the you were selling airline tickets today, you Chairman of Trader Canada, and was formerly five, and guess what? When we reviewed a key theme of the conference discussion planned it so you need people who are bar has got higher. What I thought was were still part of building a brand that was the CEO of Trader Media Group in the UK. our performance we had achieved five of and a natural first question for a group of going to be committed and take good to go in the past may not be good going to be known for selling hotel rooms the ten.” CEOs who are all too aware of the critical ownership.” The second thing to look for in to go now.” in the future.” importance of laser-like focus. How many Bankrate’s CEO Tom Evans agreed on the Evans’ mind is work ethic and work effort, The pace of technological change also major initiatives is it realistic for the While the Priceline example is very good rule of five, stressing the vital importance “are they prepared to really deal with all of means that project managers have to fulfil company to undertake? in terms of how CEOs can begin to change of communicating this to the firm after the the added ‘twiddle’ that goes with to a higher standard in a shorter timeframe, the focus and perception of a business, Board has brought the tablets down from managing a big project.” When priceline.com wanted to adapt its as Boyd explains: “We are all in such former Trader Media CEO John King the mount: “Yeah, we also laser in on the successful consumer-driven airline ticket The last and most important trait that Evans velocity driven businesses, speed is really talked about the challenge of setting five big priorities for us as a management price model to the hotel market, CEO cites is judgement. He continues: “Over everything. If you’ve got somebody who targets and ensuring that the business team and then we do a big launch for all of Jeff Boyd had to think about how to time you learn to evaluate people and give thinks they are moving fast and you think is aligned behind them. For King, his the top leaders in the organisation. And first change the internal mindset of the them more or less responsibility based on they are not, that’s a problem.” experience has boiled down to one insight then those messages are taken out on the company. Just as the dot.com bubble was their judgement. I don’t care how smart in this regard, namely businesses can only road and everyone gets a deep brief of bursting, Boyd walked into an internal town they are, you have to find people with focus on delivering five major projects at the big five.” hall meeting and told his staff: good judgement about problems, good any one time: “I was told very early in my career to remember what the K stands for in KPI, and that was very good advice.

I’ve never seen a project that goes perfectly all the time or the way you’ve planned it so you We are all in such velocity driven businesses, need people who are going to be speed is really everything. If you’ve got somebody committed and take ownership. who thinks they are moving fast and you think they Tom Evans CEO, Bankrate, Inc. are not, that’s a problem. Jeff Boyd CEO, priceline.com

Jeff Boyd CEO, priceline.com Tom is an internet industry veteran who has been the CEO of Bankrate since 2004. Apax Jeff has been the CEO of priceline.com since delivered a decade of stellar growth both organic backed the take-private of Bankrate in 2009. 2002. He led a comprehensive turnaround of and inorganic and Priceline’s market value has Because of the performance that Tom and his Priceline’s business right after the dot-com increased by more than 70 times under Jeff’s team were able to deliver, Apax was able to take bubble. Since that turnaround Priceline has leadership, which is pretty impressive. the company public less than two years later. 10 Apax Partners KnowledgeNow Conference report 2012 11

Brad Brown Director, McKinsey KnowledgeNow: Business Intelligence & Company Big Data

Over the last decade, technological advances have effectively digitised the modern world. As more of our time is spent online, we are leaving an increasingly complex and potentially valuable digital ‘vapour trail’. Clearly the business world can’t ignore the Big Data phenomenon – it’s just too big and the data trails left are too valuable. But is all the buzz surrounding ‘Big Data’ just hype, or is it, put simply, a new reality?

ZettaBytes 35by 2020 The digital universe is expected to grow by By 2016...

The number of devices Mobile data traffic is Video footage is predicted Mobile data traffic volumes 20x 10.8 in 10 years connected to the internet expected to increase to cross the internet at Exabytes per month is forecast to rise to 6.9 1.8 ZB in 2011 18-fold 20,000 4.2 3 times hours per second 0.6 1.3 2.4 the global population 2011 1615141312

Source: IDC, Digital Universe Study, June 2011 Source: Hilbert and Lopez, Science, 2011 12 Apax Partners KnowledgeNow Conference report 2012 13

Big Data continued

There is evidence to suggest that ‘Big Data’ business. Yet extracting and analysing Tom Evans at Bankrate commented on is having major economic implications in this data to good effect is far from the inherent difficulty CEOs face when many areas from retail and consumer straightforward. trying to address this giant subject, industries (see WGSN case study on p14/15) “There is a fear around this idea of big Bringing Big Data into play to healthcare, and from manufacturing to data because you could spend unlimited supply chain logistics. At a simplistic level, making the most of amounts of money trying to get more Big Data is about three things: integrating information, more analytics, more data. What is Big Data? internally-generated data and making it I always look at it in terms of ‘Is it a need to Big Data as a concept is emerging due to a transparent across a company’s know or is it a nice to know?’ If it’s a need dramatic shift away from traditional departments or divisions; integrating to know you spend money, and if it’s a nice Arnab Gupta CEO, Opera Solutions corporate technology infrastructures externally generated data; and finally, to know don’t waste your time. Secondly, (Oracle, IBM, Microsoft, etc) towards the applying analytical and modelling tools to you have to think, ‘if we get hold of this use of multiple devices and data sources that data to tackle business problems or information, what are we going to do with which are generating an ever-growing unlock revenue generating opportunities. it?’ You really have to differentiate between amount of potentially valuable information. what is possible and what is useful.” But these are still young technologies and The technology to store, sort and analyse given the pace of technological change, As an example of how to focus on what If it’s a need-to-know, you these vast data is also changing. New putting Big Data strategies into play in a really matters for your business, Brad platforms rely on virtual, cloud-based company context is not like following a Brown at McKinsey cites a recent Big spend money, and, if it’s a nice-to- architecture unlike their physical, scale- cookbook recipe – it has to be a fluid, Data summit at JP Morgan Chase where hungry predecessors. What’s more, these creative process based on understanding CEO Jamie Dimon asked external know, don’t waste your time. platforms are able to trawl through what questions you are seeking answers to. providers to think about 17 specific Tom Evans CEO, Bankrate, Inc. structured and unstructured data at an Clarity is key. Therefore, when looking at business critical areas for the company unbelievable pace: analysis that may have Big Data projects, it is vital to fully Dave Cowing Managing Director, and how they could be improved by TandemSeven taken 24 hours on an Oracle platform can understand the priorities of the business more efficient use of data. He highlighted be run today in ten minutes. and how they can be tackled using data these areas precisely because they are in before you begin the job of analysing and business functions that will really move the The result is huge volumes of data being segmenting it. Only then can it be used needle. This exercise enabled suppliers to produced by a new generation of data effectively to help focus on key decisions understand the most important issues for analysis platforms and this should be at the and create new business opportunities. the firm and to align their efforts with those centre of everything that happens in a of management. Big Data Continues ›

Every digital interaction leaves a data vapour trail... So global data storage is growing fast... With three key characteristics... Creating significant potential value 350 Integrated Integration of disparate data US retail 60%+ increase in net margin Mobile 300 across the organisation internal data Up to 50% decrease in product 250 Social development assembly costs Different data types from Manufacturing Transactions 200 External outside the organisation – Up to 7% reduction in working capital structured, semi-structured 150 data sources and unstructured data US healthcare $300bn value per year Internet Digital 100 Scientific/engineering Analytic tools Complex array of analytic Global personal $100bn+ revenue for 50 tools and models to derive service providers new business insights location data Audio/video Analogue and models Up to $700bn value to end users 0 1986 1993 2000 2007 Global compressed storage Exabytes Source: Hilbert and Lopez, Science, 2011 14 Apax Partners KnowledgeNow Conference report 2012 15

Big Data continued

The people part It is crucial to recognise that these are Support not projects that can be delegated to an in-house technical team with no management input: they are inherently Putting big cross-functional animals that absolutely require the buy-in and leadership of company executives at the highest levels. data into practice It is also worth bearing in mind that for a at WGSN company to make the shift to effectively mining and using the data available they WGSN is the world’s leading fashion will need to invest in the right people. forecasting company. It sits within 4C, The technical skills required are still the information division of Top Right relatively hard to find and attract a Group (formerly Emap), which has premium. There is also a frequent gap 12,500 customers and over 100,000 users in understanding between the technical worldwide. And it has access to a huge pool specialists that understand how to of data - 600,000 pages of information, warehouse and mine the data and the 4 million images, over 1,000 catwalk shows, management and salesforce of the 300 global experts and customers in 87 company that need the practical tools countries, as well as many thousands of to make it a competitive advantage. people engaging on social networking sites. Simply collecting terrabytes of data is of no use if no one can see through to the other end of the company and build the dashboards that will be of practical help. From a talent point of view this is the key, if scarce, skill set to target. There are also generational issues at play. But on the positive side, the latest generation of ‘socially-networked’ graduates typically think about data in a more up-to-the-minute Customers way. This means they are naturally more attuned to thinking along Big Data lines, 12,500 meaning less training is required at that level. Users At the end of the day, though, the essential ingredient for capitalising on the Big Data 100,000 Making data valuable Consolidation and clarity Although not without its challenges, the project has shown real wins. Just a few concept is to get on board as early as The main task for the team was to bring Despite the proliferation of data in the months after the conclusion of the initial possible and see the scale of the opportunity Countries together the many different silos of business, WGSN realised some time ago 12-week project, the changes in the rather than the scale of the task. And right information that had evolved on different 87 that it actually had very little actionable and business are clear to see: a culture of along the process, from the technology IT platforms in different departments. useful information about the behaviour of accountability has evolved rapidly and the element to the people side, Apax’s Unifying these and creating clear its customers. So, CEO Julie Harris business is better informed and more agile. portfolio support group and its network of accountability required a massive (pictured above) set about evolving WGSN As for results: the average global renewal preferred partners is ideally placed to assist motivational effort from the executive from being a market-leading fashion rate has risen from 79% last year to 86% in the jump into this new reality. level down to change the pattern of business run on ‘gut feel’ into a data-led in July, well on its way to the goal of 90%; thinking. Training all the teams globally company that would redefine the industry and customer numbers have grown by standard in its space. A team from Apax’s was critical, as was a focus on generating BIG DATA 6% year on year. PSG, led by Jason Glaun, helped to turn transparency of information across five Julie’s vision into reality. In an intense key areas of the business – customer use, Ultimately, what started as a short, sharp 12-week project, the PSG helped produce website usage, financials, business profiles project has enabled WGSN to build a robust data tools and dashboards that empowered and campaign effectiveness. three-year plan to solidify its position as the both the salesforce and the design team. standard bearer in its field. 16 Apax Partners KnowledgeNow Conference report 2012 17

Steven Zolman CEO, Net(net)

KnowledgeNow: Purchasing Boxing clever on procurement

Leveraging Apax’s scale to drive value in procurement across the portfolio. The 40 strong Apax portfolio generates annual revenues of $40bn around the world, generating huge procurement advantages and a wealth of knowledge and insight. 18 Apax Partners KnowledgeNow Conference report 2012 19

Boxing clever on procurement continued

Generating value from procurement partner programme in 2011. The aim of Working as one, with third party this opt-in service is to give procurement purchasing specialists You could say, using boxing parlance, executives at Apax’s portfolio of that most of Apax’s portfolio firms are Perhaps more importantly, Apax has begun companies access to the sort of cost heavyweights in their respective industries. to form relationships with highly specialised savings that they simply would not be And, due to our focus on secular growth group purchasing organisations (GPOs) – able to generate alone, and it is driven trends in key sectors and geographies, companies which are able to drive major both by internal and external elements. many continue to grow rapidly despite the cost savings for their clients by aggregating economic downturn. Nevertheless, while Maximising mutual benefits procurement spend in a range of different company growth might remain the number sectors. These partners range from groups The PSG team can introduce a network of one priority, it is impossible in the current like Core Trust, a GPO offering preferred suppliers with whom it has economic landscape to ignore the procurement savings in almost 50 different worked on numerous projects and can importance of those cost savings that can general categories (offices supplies, car provide a quality guarantee. Intra-portfolio be generated by tighter, more sophisticated rental, parcel mail, etc), to companies in offers can provide world-leading products procurement strategies. more specialist verticals: Advantage and services for best-in-class prices. Communications offers typical savings Leveraging collective scale In addition, as the adviser to funds that of 20-30% on global telecoms services; Of course, on their own the purchasing control major shareholdings in the 40 Sharebridge and Macquarie offer US and power of each portfolio company remains businesses, Apax itself can help with global savings respectively; limited in the grand scheme of things. But if contract negotiation, securing discounted Fulton Francis guarantees 15-20% savings you take them as a whole, the stats are pricing in areas like IT storage, business on print and copier services, handling quite different: together, the 40-strong intelligence and e-procurement account management tasks as well as Apax portfolio generates annual revenues technologies. procurement; and Net(net) uses its scale in of some $40 billion – easily the equivalent IT purchasing to drive strong negotiating Finally, it can also play a pivotal role in of a business well up in the Fortune 500 power with giants like Microsoft, SAP nurturing and sharing the combined listings. In procurement terms, this can and Salesforce.com. knowledge via mechanisms like monthly give our investees a long reach and a procurement committee conference calls knockout punch. – in which portfolio firms can track cost In order to help harness this power, savings progress, discuss priorities and our portfolio support group launched a share best practices – special events and dedicated procurement and preferred an online procurement forum on LinkedIn.

Preferred partner at work

Leveraging Apax’s scale 39 companies

Total portfolio revenues $40bn revenue

Estimated indirect procurement spend $8.5bn costs

Addressable costs for Apax programmes $1.3bn addressable costs 20 Apax Partners KnowledgeNow Conference report 2012 21

Boxing clever on procurement continued

Support

Generating Wound care solutions business KCI kicked Preferred partners engaged Key project facts Achieving visible results off this major programme in March of indirect savings 2012, with the direct support of its senior executives and the assistance of Apax Programme started March 2012 Indirect spend, year-on-year $MMs and some of its preferred procurement 320 at KCI partners. Formed Indirect Savings project team 300 One of Apax’s investees has already Already, the group is on track to deliver $302 made substantial progress in some $49m of savings in indirect spending. 16% 280 savings procurement savings. Though these initiatives take different Assigned dedicated project manager forms, the crucial thing for our portfolio In March 2012, Kinetic Concepts (KCI) 260 businesses is that all external partners began the Indirect Savings Project, involved in the preferred partner Senior leadership support $253 tasked with making $43 million of indirect 240 spend savings. programme have been assessed and vetted by Apax. Only this way can we Implemented staged gating approach 220 be confident that our partners are able 2011 2012 to provide material cost savings through smart, heavy-hitting procurement Partnered with Finance to quantify, strategies. You could call it boxing clever. track & validate savings Geographic distribution of savings Utilised Tracker to capture every potential project USA 79% Europe 20% Other 1% Collaborated with Apax and other portfolio companies to leverage scale opportunities

Below: KCI is an undisputed leader in the use of negative wound pressure therapies, typically employed in the treatment of the most severe surgical and trauma wounds.

Watch the KCI investment film at www.apax.com/news/video-library This time last year, KCI had a $43 million spending bogey to resolve and the last time I heard they were on track to deliver $49 million in indirect spend savings. Brendan Tobin, Operating Specialist, Apax Partners 22 Apax Partners KnowledgeNow Conference report 2012 23

KnowledgeNow: Online & e-commerce Edwin Ulak VP, Marketplace, Trader CA Mobile internet: surf the wave

Evaluating changing consumer behaviour across mobile platforms. As crazy as it sounds, you could say that the digital revolution has been pedestrian so far. As an example, many media companies have taken a decade to make the leap from print to online. But the meteoric rise of the mobile device is forcing the pace of change, and the power-shift from desktop to mobile will not be so forgiving. Edwin Ulak of Trader Canada and Jon Simmons of Apax Partners, explore some of the implications. 24 Apax Partners KnowledgeNow Conference report 2012 25

Mobile internet continued

The stats very clearly show the consumer Once the basics have been achieved, the Challenges shift to mobile. In July 2012, 11% of all web introduction of new, ‘killer’ features can Of course, there are also challenges. Support visits came via mobile devices, more than further drive take-up and keep applications To begin with not all business models work double the number the previous year. high up in the rankings. And by the way, well on mobile platforms and generally And across the Apax portfolio, the top ten tech savvy mobile consumers won’t be The initial process was rushed and licensing agreement with Trader UK, mobile sites are not perceived to be strong websites in traffic terms have seen mobile conned if your new App launch turns out to Moving into although the new apps quickly accounted they were able to save two years of in advertising terms. At this stage in the use grow by 363% year-on-year. be nothing more than a bug-fixing update. for approximately 10% of website traffic, code development work. curve it may be possible to squeeze there were some serious usability and mobile at Trader Key elements of the successful But, this is just the gentle swelling of what As a result, it is critical to use any available additional spend out of advertisers because stability issues. This led to the app being development process this time were: using is becoming a huge wave. There are tools to help in the testing of new mobile a platform has a strong mobile element, but hammered on iTunes, where it quickly the same code for both apps, albeit with estimated to be 6 billion mobile users platforms, both internally and externally, increasingly this will be harder to achieve. Canada acquired a rating of just 1.5 stars, putting globally, only 1 billion of whom are using before launch because the price of getting different user interfaces; matching the But mostly it’s about coping with the pace off potential new users. smartphone technologies. As these it wrong can be very painful indeed, as AutoTrader.ca is Canada’s leading functionality of the main website; focusing of change. The market is not so far away become the norm and 3/4G penetration Trader Canada found out the hard way online automotive classifieds website. Trader blames this initial failure on three on customer satisfaction; and putting from a key shift in emphasis, whereby builds, web traffic will surge. when it first launched its mobile platform. It has undergone a significant things: outsourcing the development mobile at the core of the business. companies will develop their online products transformation over the past few years in order to accelerate the process, not Embrace the user Get your house in order for mobile first, not as a bolt-on to a desktop In the first quarter of 2012, new iPad from being a print-based offering to one focusing on iPhone / iPad users, and site. And this has obvious implications in and iPhone applications were launched. So clearly, being ahead of the game in For this to happen it is vital that companies that is now predominantly online. As part not building in any customer feedback recruitment: getting access to talent with After just seven months, around one mobile really matters: it affects how invest in creating a vertical function, as much of this, the business developed mobile functionality. mobile experience will become a priority. in six iOS handsets in Canada had the companies gain new customers and how as is possible, across their organisations apps to tap into the growing number of When Apax acquired the company in AutoTrader app – an extraordinary they interact with them; it also has a big with dedicated expertise and resources. Again, this is where we come in: leveraging customers using mobile devices to July 2011 it brought with it the insights – adoption rate for a niche product. impact on how they drive online revenues. Outsourcing the development side to a the experience of Apax’s network can access the internet. and a number of experts – from its more Mobile now accounts for approximately third party can be cumbersome and result in unlock major synergies, both from the But it does not necessarily require advanced investment in Trader in the UK. 25% of website traffic and is set to a loss of precious IP while also tying you into recruitment angle and via opportunities jaw-dropping investment. What it does They quickly set about developing new increase as the offering continues to that provider for ongoing development work. to use cross-licensed technologies from require is a strong focus on the end-user mobile solutions and, by taking out a evolve. non-competing businesses in our portfolio. experience. This is absolutely key: unlike The Apple factor other channels in the media realm, mobile A good example of this is the work we It is also very important to consider the applications are driven by ratings and did with Trader Canada to develop their ‘Apple factor’. iTunes is a powerful market momentum is critical. product for mobile, which duplicated many maker and many businesses build their successful strategies we had previously Perhaps the best advice is to do the basics mobile application launch programmes employed at Auto Trader in the UK. first – the sexy stuff can come later. Mobile specifically to drive rankings in the iTunes consumers want the core experience from Store. Consequently, marketing to Apple a desktop platform, without having to and iTunes store managers should be a re-learn it, and they want it to be stable. key consideration: ‘App of the Week’ can provide a major boost.

Annual mobile Proportion of web visits Mobile users There is a lot of sex appeal with Apple. traffic growth* made on mobile devices* worldwide When they sprinkle their magic dust on your organisation, people just walk a little taller. 11% 6bn Edwin Ulak VP, Marketplace, Trader CA 363% *Across Apax Partners’ (only 1bn on top ten most-visited +100% websites *July 2012 smartphone)

Jon Simmons Operating Specialist, Apax Partners 26 Apax Partners KnowledgeNow Conference report 2012 27

Rae Sedel Managing Director, Russell Reynolds Associates

Connie Adair CEO, Taylor Winfield

KnowledgeNow: Recruitment Talent show

Meeting the global challenge to recruit the right people, for the right roles at the right time. In recent years, the already tough task of hiring the right calibre of staff into senior and business-critical positions has become even harder. On the one hand you have global economic imbalances, which are seeing Western economies stagnate while the likes of China, India and Brazil boom. On the other, you have the relentless pace of change in the IT environment, which is radically altering how business is conducted in a huge range of industries. 28 Apax Partners KnowledgeNow Conference report 2012 29

Talent show continued

The search for talent strategy, vision and culture of a firm, These are the employees who will provide In addition, according to executive search and CFOs, who take care of the checks the link between the data and your sales This global environment is putting more specialists, the chance of working within and balances. staff or operational heads. And, arguably, pressure than ever on businesses to fill businesses associated with top private of the three categories, these are their top positions wisely and recruitment But in today’s landscape, there is the added equity houses can be a real draw, especially unfortunately also often the most difficult consultants are working flat out to satisfy complexity of an increasingly digitised in some of the emerging markets. And this experts to locate. this need. In certain industries executive world. And, while it is clear that the can be where we, the PSG team, come in... search activity is especially high, with areas top-level executives need to have a firm Finding the right carrot Recruitment support from Apax’s PSG like healthcare and consumer standing hand in steering the push into Big Data So what does it take to land the best talent out as particular hotspots in most regions. territories (see Big Data on p10), this area is Digital strategists are certainly becoming in today’s market? Interestingly, it appears Only sectors like are also creating the need for the recruitment harder and harder to find as more traditional to be less about the remuneration on offer comparatively quiet. of additional more specialised talents. businesses gain an awareness of the digital than in previous times; though clearly that These recruits can take a number of world in which they now operate and try to By region, the new economies are of remains a key ingredient in the overall different forms. On one side you have the hire in the talent to help them to capitalise course the most active, even though recipe. For many, especially at the senior theorists, who are at the heart of the on the opportunities that this new world growth in recent times has slowed, end of the recruitment spectrum, one of thought leadership in ‘Big Data World’. Very presents. while the US is generally gaining pace. the big attractions today is the ability to often with strong academic backgrounds, The Eurozone countries are clearly the make a difference, to steer the culture of For our investees, Apax’s Portfolio Support these are the people who can analyse giant worst hit by economic issues, but even the company and to break new ground. Group can play a pivotal role in helping with datasets and mould them into a business here recruitment specialists report having the recruitment of senior and specialist resource. Meanwhile, on the other side you Certainly location is also another ingredient launched three times the number of staff. Drawing on our own expertise, the need to have the technical staff that can and it can inevitably be much more difficult CEO searches compared with last year. support of preferred partners and the integrate that data into your workflows. filling positions in companies based in less experiences of Apax’s portfolio companies Technology matters desirable geographies. Despite this, as But the search does not stop at finding the worldwide we can tackle recruitment issues positions become more mobile and Evidently, in challenging trading conditions talent to fill these roles. It is also important at a pace that will allow our businesses to working practices become more virtual, it is more important than ever that to have people in the middle who have a ensure that they too can keep up with the this is less of an issue. companies have the right leaders, both deep understanding of your business’ developments in the digital world. in the shape of CEOs, who define the mechanics and are able to maximise the actual impact of Big Data strategies.

Steve Hare Apax Partners 30 Apax Partners KnowledgeNow Conference report 2012 31

Conference attendees Who’s who?

Conference speakers Connie Adair CEO, Arnab Gupta CEO, Andrew Swinand CEO, Taylor Winfield Opera Solutions Cardinal Path Jeff Boyd CEO, priceline.com Steve Hare Global Head of Brendan Tobin Operating PSG, Apax Partners Specialist, Apax Partners Brad Brown Director, McKinsey & Company Julie Harris CEO, WGSN Frank Torbey CEO, TandemSeven Seth Brody Partner, PSG, Nick Hartman Operating Apax Partners Specialist, Apax Partners Edwin Ulak VP, Marketplace, Trader CA Bill Cook President, Greenplum John King Chair of Trader (a division of EMC2) Canada, Former CEO Trader UK Chris Wakerley MBE Managing Director, Boxwood Dave Cowing Managing Simon McCall Director, TandemSeven Director, BoxWood Steven Zolman CEO, Net(net) Tom Evans CEO, Bankrate, Inc. Rae Sedel Managing Director, Russell Reynolds Associates Jason Glaun Operating Specialist, Apax Partners Jon Simmons Operating Specialist, Apax Partners

Conference attendees Connie Adair CEO, David Cortese CIO, Mitch Gross Global President, Tim Jones CIO, Trader Kevin Michielsen Senior Vice Don Ross SVP, Chief Revenue Edwin Ulak VP, Marketplace, Taylor Winfield Advantage Sales & Marketing Insurance Services, Travelex Media Group President & Chief Strategy Officer, Bankrate Trader Canada Officer, ALM Media Bill Andrulevich CCO North Dave Cowing Managing Buddy Gumina Co-head, Eugene Kiel VP, Research Arik Schor CEO, TNUVA Derek Usher CIO, Travelex Healthcare, Apax Partners Platform Services, Scott Miller VP, Sales, America, 4C-Group Director, TandemSeven Rae Sedel Managing Director, Christopher Vento EVP, LRS Learning CoreTrust Dave Ball SVP, Operations, KCI Martyn Curragh Partner, Arnab Gupta Founder & Russell Reynolds Associates Technology & Development, PricewaterhouseCoopers CEO, Opera Solutions John King Chair of Trader David Mulligan CIO, KCI Cengage Learning Jonathan Ball Client Director, Bryan Smith CIO, Canada, Former CEO Trader UK EMC2 Peter DeFrancesco VP/GM, Heather Hammond Managing Bob Murray Treasurer, Cengage Learning Chris Wakerley MBE Bankrate Director, Russell Reynolds Kellsey Le President & Advantage Sales & Marketing Managing Director, Boxwood Brett Batchelder Senior Michele Sweeney Chief Associates COO, NET(net) Director, Private Equity, EMC2 Maurizio Delloca CIO, SISAL Harish Mysore SVP, Corporate Revenue Officer, Cardinal Path Allen Wales VP, Technology, Pete Hanlon CTO, Larry Lineker Chief Sales Development , The TriZetto Trader Canada Zvi Bichler VP, IT & Asset Sarah Eames Managing Andrew Swinand CEO, Trader Media Group Officer, HUB International Group Management, Paradigm Director, Russell Reynolds Cardinal Path Jeff Whittle Chief Technology Associates Sean Harley IT, 4C-Group Michael Lisowski Strategy Duncan Painter CEO, & Digital Products Officer, Jay Black Director, CoreTrust Shivani Tejuja eCommerce Director, TopRight Group TopRight Group ALM Media Dave Eckley President / Julie Harris CEO, WGSN Director, New Look Jeff Boyd CEO, priceline.com COO, Netrada Guy Lister Customer & Multi- Neil Patel IT Director, Roger Willmott CTO, Peter Holton SVP, Business Laura Teller Chief Strategy Brad Brown Director, channel Managing Director, Apax Partners 4C-Group Onur Erzan Partner, Intelligence, Advantage Sales & Officer, Opera Solutions McKinsey & Company New Look Marketing Alex Pellegrini Parther, Retail & Stephen Wilson CEO, McKinsey & Company Sara Tisdale Program NB. PSG attendees are not listed. Paul Butka SVP, CIO, Eric Lundberg SVP & CFO, Consumer, Apax Partners 4C-Group Tom Evans President & CEO, Dan Hoogterp SVP & Director, Trader Canada The Portfolio Support Group team is Bob’s Discount Furniture ALM Media CTO, Bankrate Alan Phillips Team Lead Michael Wright Partner, on pages 34 & 35. Bankrate Frank Torbey CEO, Zillah Byng-Maddick David Marantes VP, Global Corporate Systems Engineer, PricewaterhouseCoopers Poul Flagstad Principal, Mark Howe EVP, Human TandemSeven CFO, Trader Media Group Procurement, KCI Sophos Resources, Cengage Learning Steven Zolman CEO, NET(net) Opera Solutions Mitch Truwit Equity Partner, Bill Carter President & Borja Martinez Partner, Joachim Reinhardt Robert Geib EVP, Client Lenny Izzo SVP, Apax Partners CEO, ALM Media Apax Partners Global CEO, Netrada Marketing, ALM Media Services, NET(net) Sanjay Tugnait EVP & Head Bill Cook President, EMC2 Simon McCall Director, Mike Ricciardelli SVP, Marcelo Gigliani Partner, W. Kirk James COO, Of Sales, North America & Boxwood Business Development & Apax Partners HUB International Global Head Of Alliances, iGATE Dave Cook CEO, Netrada Consumer Marketing, Bankrate North America John Megrue Co-head, Retail Technologies Thomas Godward Principal, Teresa Johnson & Consumer, Apax Partners Tuck Rickards Managing PricewaterhouseCoopers Interim CFO, KCI Barry Cordeiro CIO, Director, Russell Reynolds HUB International Associates 32 Apax Partners KnowledgeNow Conference report 2012 33

About Portfolio Support Group The advantage of scale

The Portfolio Support Group is a resource for Being an Apax portfolio all Apax portfolio companies. company makes you part By sharing our collective knowledge, scale and experience across all the other companies (and of something bigger. dozens of preferred partners) the portfolio can Seth Brody Partner, PSG, Apax Partners grow their businesses, save time and save money.

Leveraging knowledge, scale and experience Apax’s global presence

Preferred Partner Programme has established relationships Group Purchasing leverages our with speciality providers at portfolio scale to drive recurring preferred rates and terms cost savings and EBITDA

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‘KnowledgeNow’ programmes Commercial Optimisation proactively engage portfolio empowers management with management to share ideas, competitive intelligence to establish best practices and improve contract terms and cross sell relevant services save money. 34 Apax Partners KnowledgeNow Conference report 2012 35

About Portfolio Support Group The PSG team

Steve Hare Steve Hare is Head of the Portfolio Support Steve is a Chartered Accountant with a Mark Zubko Mark Zubko joined Apax Partners in 2010 and Mark holds an MBA from Stanford University Group and is a member of the Portfolio Review Bachelor of Commerce from Liverpool is a Principal leading the Financing Team. His and has a BA in Economics from Wesleyan Global Head of PSG Committee. Steve joined Apax in 2009 and is University and has a wealth of global industrial Principal of the Financing team Apax deal experience includes iGATE, Epicor, University. based in London. He is on the Operating Board experience, having worked and lived in autotrader.ca, KCI and Orange Switzerland. of D+S Netrada. Europe, America and Asia. Prior to joining Apax, Mark was at Terra Firma Prior to joining Apax, Steve served as a public Capital Partners and before that worked company CFO with Invensys, Spectris and at and Co. and MidOcean Marconi. Capital Partners.

Seth Brody Seth Brody has been with Apax Partners since Seth serves on the Board of Directors for Nishant Nayyar Nishant Nayyar joined Apax Partners in 2009 Before his time at Warburg, he worked with 2008 as an Operating Partner based in the Bankrate, Inc. (NYSE:RATE) and is a member as a member of the Media team and works in Bain & Co. in Boston and Singapore. Partner, Portfolio Support Group Senior Financing Associate the London office. He is currently an observer New York office. of the Operating Board at NETRADA Nishant has a BA from Williams College in Management GmbH. He also serves as a on the board of Emap. His prior executive operating experience Politics and Economics as well as an MBA Director of Tagman, Inc. and an advisor to includes roles as Executive Vice President and Prior to joining Apax Partners, Nishant worked from Harvard Business School. Partners, a leading General Manager at Razorgator Interactive at , a global private equity firm focused on digital media and technology. Group, as Group Vice President and General firm, on a wide variety of transactions across Manager at Orbitz Worldwide, and as Director He received his BA from Yale University and industry groups. of Marketing at priceline.com. his MBA from Harvard Business School.

Nick Hartman Nick Hartman is an operations specialist in Nick holds a BSc from the Kelley School of Jonathan Simmons Jon Simmons is an Operating Specialist in Prior to founding Clearsearch in 2006, Jon the Portfolio Support Group and joined Apax Business at Indiana University and an MBA Operating Specialist the Portfolio Support Group and joined Apax was the Director of Marketing Operations at Operating Specialist Partners in 2009. from the Kellogg School of Management at Partners in 2012. Walkaway Media, an online lead aggregator in the travel industry, and also held various Northwestern University. Prior to joining Apax, Jon was the Founder Prior to joining Apax, Nick held senior positions at priceline.com. management positions at Orbitz Worldwide and Principal at Clearsearch Media, where he and Accenture, which included profit / loss led digital strategy for a diverse portfolio of Jon holds a BA in Economics and German responsibilities, international expansion, and clients ranging from early stage ventures to from Middlebury College. consulting for Fortune 500 retail and high global companies. technology clients.

Jason Glaun Jason is an Operations Specialist in the PSG Holding previous operating positions at board Jodi Krakower Jodi Krakower is an Analyst in the Portfolio team having previously held the role of Interim and executive level, his specialty areas revolve PSG Analyst Support Group and joined Apax Partners Operating Specialist, IT Global Technology Director at Apax Partners. around supply chain, business operations in 2010. and technology. Prior to joining Apax in 2009, Jason founded Prior to joining Apax, Jodi worked at [x+1], a a management consulting business in the Jason holds a Post Graduate Diploma premier digital marketing agency, where she Channel Islands. He has operated in retail, in Commerce & Industry and an MBA in specialised in Web Analytics. Jodi holds a BA digital, technology alternative investments, Technology Management from the in Economics from Harvard University. finance, law and consulting industries. Open University.

Irene Liebler Irene Liebler is Head of Portfolio Recruiting Prior to joining Apax Partners, Irene was a Brendan Tobin Brendan Tobin is an Operating Specialist in he held senior management positions and a member of the Portfolio Support Group. consultant with Heidrick & Struggles Int. Inc., the Portfolio Support Group and joined Apax in purchasing at Cenveo, Inc. and Moore Head of Portfolio Recruiting Based in Munich she serves Apax portfolio a global executive search firm, where she Operating Specialist Partners in 2012. Wallace Inc. companies internationally. specialised in recruiting senior management Prior to joining Apax, Brendan was an Brendan holds a Bachelor of Business and directors for clients in the technology, Irene joined Apax Partners in 2002. She advises independent procurement consultant working Administration from the Mendoza College , ecommerce and media portfolio companies on recruiting and human with Fortune 500 consumer products and of Business at University of Notre Dame. sector. resources topics. As an integral part of the business services clients. He also worked investment team she also works closely with Irene holds a master´s degree in business with a turnaround management team where the deal team during the due diligence phase. administration from Ludwig-Maximilians- University of Munich.

Gary Hughes Gary Hughes joined Apax Partners in He is currently on the board of J. Sainbury plc October 2012. and chairs their Audit Committee. He is also Operating Executive a Non Executive Director of the Scottish He is an experienced public company CFO Exhibition and Conference Centre Ltd. who has extensive operating experience, particularly in the media and retail sectors with companies such as Gala Coral, United Business Media and Scottish Media. 36 Apax Partners KnowledgeNow Conference report 2012

About Apax Partners Releasing potential

Apax Partners funds’ portfolio includes: Apax Partners is an independent, global firm Our funds typically invest in companies with a value focused on advising on long-term investment between €1bn and €5bn, across five sectors: in growth companies. Financial & Business Services, Healthcare, Media, Retail & Consumer, Tech & Telecom. GARDA Our mission is to release the potential of companies, Financial & management teams and portfolio company employees Our funds have a proven strategy of finding opportunities Business to generate superior returns for our investors: the where capital, experience and insight can release the Services millions of individuals, corporates and sovereigns potential of businesses and generate significant growth whose pension funds and investment plans commit We currently operate a global network of ten offices, to funds advised by Apax Partners (‘Apax Funds’). in three continents, and employ over 300 people.

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For more information and a complete directory of Apax’s portfolio, please visit www.apax.com www.apax.com

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