Releasing potential sustainably Sustainability Report Apax Partners 02 Sustainability Report

Apax Partners Contents Chief Executives’ introduction 03 Releasing Sustainable investing and portfolio monitoring 04 potential A global portfolio 60 sustainably Environment 07 Social impact 08 Governance 09 ESG performance data 10 Case study: Tivit 12 Apax Foundation 13 Our values 15 Conclusion 6 1 Apax Partners 03 Sustainability Report

Chief Executives’ introduction

Long term commitment The Firm has made sustainability one of the key Committed to Apax Partners has been committed to sustainable layers in the Apax strategy and requires that its investing for many years. Sustainability is embedded professionals focus on sustainability delivering value in our investment process, to help release the full issues as one of the standard modules in potential of the businesses in which our funds invest. due diligence. sustainably This means that issues relating to sustainability are Sustainable returns raised in the early stages of any potential investment We believe that the firms which are most proactive opportunity and are monitored throughout Apax’s in their wider responsibility will deliver the best stewardship of the company. economic returns. Economic returns are not a contradiction to social and sustainable investing; it is Sustainability leadership In 2009, we adopted the Council’s the way leading private equity firms will deliver value. guidelines for responsible investment and became Sustainable investment is not only the right thing to a signatory to the UN-backed Principles for do, it also delivers measurably better returns. Responsible Investment (UNPRI) in 2011. Sustainability Report The Apax Partners Sustainability Report showcases Mitch Truwit Andrew Sillitoe The Firm aims to lead the private equity sustainability Co-CEO, Apax Partners Co-CEO, Apax Partners movement, not only by supporting these principles, the progress our investment team and our portfolio but more importantly, by putting them into practice. companies have made in our ESG journey. We will measure our success by the degree to which we will We believe that the firms At the heart of our strategy have passed on our responsibility and duty as Sustainable investing is vital to Apax Partners’ shareholders to ensuring that our portfolio which are most proactive in success and it has become an integral part of companies embrace the integration of corporate their wider responsibility will the investment team’s approach. responsibility into their day to day business activities. deliver the best economic returns. Andrew Sillitoe Mitch Truwit Co-CEO, Apax Partners Co-CEO, Apax Partners Apax Partners 04 Sustainability Report Sustainable investing... What we do

Active ownership Pre-investment Post-investment

Apax Partners has a well-defined Corporate Pre-investment activity focuses on the Following the successful roll out of the pre- Responsibility policy which is guided by its identification of ESG risks, the company’s investment ESG diligence into the Firm’s fundamental values (Integrity, Stewardship, ability to manage ESG considerations and its processes, portfolio company specific ESG Community, People and Relationships – performance related to ESG in the past. issues are managed on a day-to-day basis by see page 08). the companies themselves, using an innovative software system proprietary to Apax (see overleaf).

Since adoption of the PRI Principles (see below), sustainability has been The Apax investment team undertakes standard pre-investment The proprietary software facilitates key KPI data collection across embedded in Apax’s investment process as a tool to help release the full Environmental, Social and Governance (ESG) due diligence for each new ESG areas for each portfolio company. Once established, the system potential of the businesses in which Apax funds invest. This means that investment made by the funds. The due diligence is based on a detailed is designed to be self-sustaining and self-governing on the part of the issues relating to sustainability are raised at an early stage in any potential questionnaire which has been drawn up to cover the ESG areas which portfolio companies, allowing each to take full responsibility for their investment opportunity and are monitored throughout Apax’s ownership Apax believes are key to understanding the ESG profile of the company respective ESG policies. of the company. in which the funds are considering an investment. Apax investment team members are involved in ESG matters when The Firm coordinates its sustainability efforts through a sustainability The outcome of the ESG due diligence review is presented to and reviewed they are tabled during Board meetings for the companies for which they committee consisting of five members from different functions within by the Apax Investment Committee prior to each new commitment and are responsible. In addition, Apax investment partners are required to sign the Firm. The committee meets on a monthly basis and reviews all areas of risk and opportunity are highlighted by the respective investment an annual Statement of Representation attesting that the portfolio company matters relating to Apax’s internal and external sustainability related teams. The objective is to create a high degree of awareness upfront with complies with its local regulatory framework and there is no awareness of activities; the committee ensures that implementation of sustainability regards to potentially relevant ESG issues which can contribute to value any sustainability issues. Apax reports to its LPs on a semi-annual basis matters is achieved across the investment team, the Apax portfolio creation at a very early stage of ownership of the company. in a detailed manner and includes a section on latest sustainability and the Firm. developments for each company.

Incorporate ESG issues into investment Seek appropriate disclosure on ESG issues Work together to enhance our effectiveness UNPRI 1 analysis and decision-making processes 3 by the entities in which we invest 5 in implementing the Principles Principles for

Responsible Investment Be active owners and incorporate ESG Promote acceptance and implementation of the Report on our activities and progress 2 issues into ownership policies and practices 4 principles within the investment community 6 towards implementing the Principles Apax Partners 05 Sustainability Report Portfolio monitoring... How we do it

Proprietary software solution Portfolio implementation

The focus of the Apax sustainability effort has been In mid-2013 the Apax Partners portfolio companies on the implementation of a proprietary software across Funds V, VI, VII and VIII were asked to provide solution to monitor, track and report on the input via the proprietary software platform on 80 environmental, social and governance performance KPIs, based, amongst others, on the Global of the Apax Partners portfolio companies. Reporting Initiative (GRI) guidelines, the leading international benchmark for sustainability reporting.

A key feature of this programme is an Once this bespoke software is The Apax ESG Group Media Group, Trader Canada, Capio, annual data collection cycle designed implemented, each Apax portfolio With a response rate of over 80% of Travelex and Epicor. The Apax ESG to highlight each portfolio company’s company is able to maintain, track the eligible (majority owned and not group generated approximately performance in its key areas of risk and record its own ESG data and planning an exit) Apax portfolio US$ 21 billion (€16 billion) in global and opportunity. A set of general key to additionally tailor specific KPIs, companies, combined generating revenues and US$ 4 billion (€3 billion) performance indicators (“KPIs”) across if needed. For Apax Partners, the almost 90% of the 2012 revenue pool, in EBITDA and employed 166,000 FTE environmental, social and governance key benefit of this project is that it Our proprietary we are very pleased to have collected by year-end 2012. It represents a cross software system areas has been developed, which affords significant visibility and relevant a dataset that represents a very large section of the key Apax investment allows Apax to gather qualitative and data capture which in turn drives proportion of the overall Apax portfolio. sectors: Consumer, Healthcare, Services, quantitative data from its portfolio improvement of the ESG footprint Tech & Telco. Throughout this report the group of companies; in so doing, Apax is able to across the overall Apax portfolio, as companies that provided KPI data is The scale of the ESG group puts us on provide transparency on the portfolio’s well as within each individual portfolio referred to as the Apax ESG group a par with many of the world’s largest ESG footprint to the Firm’s investor company; critically, the Firm is able consisting of: Psagot, KCI, Takko, Tivit, companies, so a proactive focus on base. The proprietary software to provide this information to LPs Sophos, Garda, Tnuva, Sisal, Unilabs, sustainability is a fundamental part of facilitates and streamlines the data on an ongoing basis. Orange CH, New Look, our wider corporate responsibility. capture of the KPI information and Farmafactoring, GHG, iGate, Paradigm, additionally functions as a central Golden Jaguar, Plantasjen, Trader Releasing repository for ESG information and potential sustainably its related supporting documentation Apax Partners Sustainability Report across the portfolio. 09 08 ApaxApax Partners Releasing potential sustainably 06 Sustainability Report A global portfolio

In this section: Apax Partners has a globally diversified portfolio Environmental impact 07 across 15 countries with differing regulatory frameworks. Total capital invested globally Europe Social impact 08 at year end 2013 was USD 12.9 billion, in 41 companies, generating combined revenues 20 Governance 09 of USD 36 billion*. Companies ESG performance data 10 $6,179m Invested cost $22,749m Revenue Rest of the World

North America 5 Companies 16 Companies $1,086m Invested cost $5,592m Invested cost $1,751m Revenue $11,416m Revenue

* only as at 31.12.2013 Apax Partners 07 Sustainability Report Environmental impact of the Apax Partners portfolio

Examples of environmental KPIs Breakdown of CO2 emissions Examples of environmental initiatives

Across our portfolio, we have a high number of initiatives in place that reduce  What is the company’s  Does the company complexity, waste and energy consumption. These initiatives range from: reducing electricity usage via replacing traditional light bulbs to led, reducing paper 14 companies account for 26% current energy have an environmental usage by setting default double sided printing in all of the offices and reducing of CO2 emissions consumption? policy? water usage by investing in low flow fixtures, auto shut off faucets and other water reducing features. Energy Paper 875m Kwh of electricity usage 17,905 tons of paper purchased by 830,497 reported by 16 companies 15 companies tons equivalent of CO 2 Plantasjen Increased insulation in all new built Tnuva During the second half of 2012, Tnuva  Are there initiatives in  What are the targets were reported 5 portfolio companies account for stores. Installed heat pumps in 6 stores in the commenced a number of processes in order to by 19 companies place to reduce the for the next 12 74% of CO2 emissions last 12 months. From increased insulation the reduce paper and packaging usage, which are company has saved approx 1/3 in energy currently in process, including: replacing hard energy footprint? months? consumption vs the old store format. Heat cheese packaging from PVC package to Pet pumps have reduced energy consumption by (which is more environment friendly); approx 20%. introducing foamed polystyrene sheets for FFS (instead of polystyrene only); replacing Capio Throughout the Capio Group there are a onetime egg cartons to plastic washable number of initiatives in place to reduce energy packages; reducing several bottles’ plastic use such as in solar-panels (in packaging weight by way of changing the Dannenberg and Bad Brückenau in Germany), manufacturing technique to injection blow the use of low-energy bulbs, green cars and – all in order to reduce weight, costs and waste; automatic light switches. Energy-efficiency is gradually replacing wood pallets with plastic, an important parameter when making new in order to reduce timber waste and increase investments in the construction of new production safety. Environmental data overview Resources usage The Apax investment and distribution of products, to the use and buildings (Dannenberg in Germany and The ESG group reported almost full sectors are not focused on heavy industries disposal of products by consumers, patients, Bayonne in France). compliance with all local environmental but predominantly on services, , and providers. The portfolio’s environmental regulations in 2012. In only one case an issue arose with regard to a local regulation technology and digital businesses. stewardship initiatives will help protect the Water Waste planet while improving efficiency, reducing on oil storage and waste transfer which The Apax portfolio consists of a large was immediately addressed. There were costs and preserving their ability to do 6.8m3 reported by 14 companies 29% of the Apax ESG group portfolio number of “asset light” businesses which no serious environmental incidents business in the future. Sustainability is not has a waste management policy do not have a significant environmental reported across the ESG Group. just the right thing to do, it can also boost impact. The majority of the resource usage GHG The company continues to focus KCI offers a recycling program for facilities and innovation and profitable growth. This is why is reported by a small number of companies. on maintaining staff awareness and patients that allows safe disposal of certain we clearly see it as a key differentiator and a For example, out of 19 companies which communications regarding water use single-patient Negative Pressure Wound competitive advantage. (see example poster below). GHG has employed Therapy (NPWT) devices. KCI provides this LTM serious environmental incidents 0% provided data to calculate CO2 emissions, a specialist water savings consultancy on a recycling program free of cost to the customer. Waste Management Policy 29% 5 account for 74% of all reported CO2 gain-share basis. They have audited all site bills, KCI has partnered with Sharps Compliance Inc. Environmental Policy 36% emissions in 2012. benchmarked water consumption, and to convert customer-recycled KCI single-patient Initiatives to reduce water usage 48% undertaken site surveys of water consumption NPWT devices into PELLA-DRX™. This Initiatives to reduce energy usage 62% The Apax portfolio is focused on reducing its at all sites where benchmarking indicates material is then used in the manufacturing of Initiatives to reduce paper / packaging 67% global environmental impact – from the excessive consumption. This has resulted in a homes, highways, and high rise buildings. Compliance with all local environmental regulations 96% sourcing of raw materials, to the manufacture variety of remedial actions being implemented including reducing lavatory flushing, fixing failed valves, fixing faulty equipment, and reviewing opportunities for capital investment.

Data representative of year ended 31.12.2012 Apax Partners 08 Sustainability Report Social impact of the Apax Partners portfolio

Examples of social KPIs Breakdown of employees Examples of social impact initiatives

Across the ESG group a number of companies have put in place initiatives to improve their and their employees’ social position by improved training  What is the profile  Does the company programmes, performance management systems and improved career of the workforce? have a health and development practices. safety policy? 16 companies account for 30% of employees Improving wages and working conditions $

New Look In 2012 the company completed 70 equivalent to an increase in annual pay of projects to meet its key objective of improving £614,000 across the workers employed in wages and working conditions for workers, these factories.  Is there employee  Level of voluntary 166,000 reaching 1,046 factories and 603,808 workers. full time employees This included training 121 factories across 6 representation? turnover and (FTEs) in the Apax countries on health and safety and delivering wage improvements in 119 factories. 6 companies account ESG Group in 2012 redundancies? Key highlights include: 11 of the factories in for over 70% of employees India and Bangladesh participated in the Benefits for Business and Workers programme. In Bangladesh, monthly pay increased by 4.62%, equivalent to an increase in annual pay of £529,000 across all the workers employed in these factories. And in India monthly pay increased by 5.09%,

Training Employee benefits; Sick day and illness Health and safety Gender balance Social impact summary and career promoting On average 5.7 days were lost per In terms of health and safety, only four The workforce was split 54% female and The Apax ESG group employs a large and development work-life balance year, per employee to illness. Roughly of the Apax ESG group portfolio 46% male at year-end 2012, with 34% of very diverse workforce of 166,000 FTEs 41,000 individuals chose a voluntary companies do not have a health & companies reporting having a diversity worldwide. The Group contains a number of Garda GardaWorld career development Orange introduced a number of new benefits centre has designed a career path and has for its employees, amongst others: exit with the majority of this number safety policy in place. There were policy in place. 14 companies reported very large employers, each employing over created an online learning management having employee representation in place 25,000 full time employees, and a few small - Extension of the Employee Leave Package coming from one company. There 4,900 work related accidents reported system open to all Garda employees, based for 3 years, with adapted indemnities (social were approximately 10,000 across the ESG group and one and 85% reported compliance with local employers employing less than 1,000 FTEs. on customers’ requirements and employees’ solution for cases of structural change). redundancies across the Apax ESG company had to pay a small fine for labour regulations. Across the board our portfolio companies requests. CDC (Career Development Center) - P ilot project “Presence Management” group, with one company undergoing health and safety non-compliance. strive to foster strong employee engagement and E-campus (online system) are used with for call center employees, aiming at proposing a great success and are slightly profitable, better follow-up in case of regular sickness of a reorganisation contributing to the and to develop the qualifications and reinvesting the proceeds to improve training expertise of their employees with career employees. majority of this number. tools. It does not consume any money from - Implementation of “Family Service” development programmes and training. A the company’s P&L and has a great impact which is an external service provided to all growing number of employees are seeking on the employees. employees free of charge and confidential. more flexibility in how they balance work with This service includes: overview and research on 1 2 3 4 5 6 6 the rest of their lives; for example, childcare places in daycare centers, after-school care, responsibilities. A number of our portfolio lunchtime care, day schools, private schools; placement with day families, nannies, au pairs; companies are now exploring options for 5.75 sick days per FTE / year 4,900 work related accidents 54% female 46% male arrangement of childcare on demand, in offering flexible work schedules, part-time emergency situations and during school work and telecommuting. holidays.

Data representative of year ended 31.12.2012 Apax Partners 09 Sustainability Report Governance of the Apax Partners portfolio

Examples of governance KPIs Overview of compliance and policies Examples of corporate governance initiatives

Compliance  What is the anti-  Does the company Compliance with all local environmental regulations 96% Implementing a Global Improving policies Compliance with all materially relevant local labour regulations 85% Compliance Dashboard and guidelines corruption practice have appropriate Monitoring of compliance with compliance policies and procedures 79% Anti-corruption protections included in 3rd party contracts 74% of the company? ethical conduct iGATE In order to ensure good corporate Capio In the last 12 months Capio Group Sub-contractors adherence to environmental guidelines 29% governance iGate has initiated a robust and implemented a whistle blower policy and (e.g. Policies, training, procedures, codes of practice? Board reports on the main environmental risks & impacts 18% whistle blowing hotlines) comprehensive Global Compliance Dashboard, developed general anti-bribery and anti- Fines paid for health & safety noncompliance LTM 5% an integrated web based online system, corruption guidelines for the Capio Group; the Subject/target of investigation relating to anti-corruption conduct laws LTM 0% customized for the iGATE environment in order Group also developed a new policy for the LTM serious environmental incidents 0% to manage compliances on time. The Global prevention, deterrence and detection of bribery Compliance Dashboard helps to identify and corruption of Capio in Sweden. statutory obligations and avoid financial loss/ penalties incurred/imposed due to failure in Are there supply  What is the composition adherence of compliance deadlines. It does this chain due diligence of the Board of Directors? by sending timely alerts prior to the compliance due date to various process owners across policies in place? (e.g. How many independents?) functions, locations and also sends alerts to respective managers to allow them to complete compliance tasks within statutory GHG In 2012, GHG created a Health & Safety deadlines. iGATE recognizes that Compliance and Non-Clinical Risk Committee which reports management is a critical component of the directly to the company’s Leadership Team Policies internal control process for any business and a (executive management) and which deals with prerequisite for assessing compliance with all health and safety matters and non-clinical Annual CSR Report 26% corporate performance standards. risk that GHG is exposed to. Waste Management Policy 29% Environmental Policy 36% Diversity Policy 36% Corporate Governance Policy 59% Health & Safety Policy 68% Anti-corruption & anti-competitive conduct policies 79% Code of Conduct/Ethics 80%

Public recognition A number of the Apax portfolio companies received public Governance summary employees and also by our institutional recognition for their activities and focus on corporate citizenship: At Apax we realise that good corporate investors. Robust corporate governance governance is the foundation of effective systems are in place across the Apax ESG Psagot achieved a maximum “platinum” rating New Look won PETA UK’s Most Stylish corporate management. For us, corporate group. Almost all companies have a code of in the Israeli Ma’ala ranking. Psagot is the only Women’s Vegan Outerwear Award, which aims governance means the application of conduct and/or a code of ethics which guides private company in the and finance to showcase the best cruelty-free contributions international and national values and their business activities. All companies have sector in to have received this rating. The to the fashion world. New Look also won the principles of responsible and transparent anti-corruption/anti-competition processes in score that the company was awarded in 2012 is Global Sustainability TVE film awards 2012 in company management and control that are place which are monitored regularly. Portfolio higher than the average in the category. Ma’ala is the Good Governance category for its film about Israel’s leading advocate for CSR and good the company’s work to improve conditions and geared towards sustainable added value. companies that are new to Apax or which corporate citizenship. wages in a factory in Bangladesh. (See page 08) We target full compliance with the laws and have historically had less focus on governance regulations of each country in which we are actively encouraged to adopt appropriate operate, as well as with international codes and processes. standards. It is the necessary condition Anti‑corruption for our engagement with society. We are During the year, no public allegations of convinced that good corporate governance corruption were made against any of our strengthens the trust placed in our portfolio portfolio companies or their employees. companies by their business partners and

Data representative of year ended 31.12.2012 Apax Partners 10 Sustainability Report 2012 ESG performance data:(1)(2) by Sector

Environmental Social Governance 31 December 2012 Subject of Compliance Compliance anti- CO2 with local with local Anti- corruption emissions Electricity Water Waste Serious environment Employees Women Men Diversity Sick days Voluntary Workers labour Code of corruption or anti- CSR Company Sub -sector (tons) (Kwh) (m3) (tons) incidents regulations FTEs % % policy (FTEs) turnover Council regulations conduct policy prcompetition Report

Consumer Company A Consumer Goods 248,367 200,000,000 4,000,000 20,311 No Yes 4,095 24 76 No 4,473 384 Yes Yes Yes No Yes No Company B Gaming 11,305 18,261,567 26,938 39 No Yes 1,476 41 59 No 9,669 63 Yes Yes Yes Yes No Yes Company C Online 2,906 1,458,613 – – No Yes 1,213 44 56 No 337 191 No Yes No No No No Company D Retail 104,586 193,477,851 177,977 4,669 No Yes 7,612 78 22 Yes 43,049 – Yes Yes Yes Yes No Yes Company E Retail 9,903 21,602,141 – – No Yes 16,886 93 7 No 50,648 – No Yes Yes Yes No Yes Company F Retail 6,736 52,422,229 335,518 8 No Yes 1,224 68 32 No 23,068 50 Yes Yes Yes Yes No No Company G Consumer Goods 40,210 39,420,000 1,550 11 No Yes 5,031 41 59 No 4,986 – Yes No No Yes No No Company H (1) Retail – – – – – Yes 12,665 – – Yes – – – Yes Yes No No No

Healthcare Company I Hospitals – – – – No Yes 10,142 82 18 Yes – – Yes Yes Yes Yes Yes No Company J Hospitals 51,825 59,612,242 343,497 2,996 No No 7,791 78 22 Yes 44,115 1,722 No Yes Yes Yes No Yes Company K Medical Products 45,843 57,015,067 33,236 453 No Yes 5,092 51 49 Yes 7,870 1,784 Yes Yes Yes Yes No No Company L (1) HC Services – – – – No Yes 2,700 74 26 Yes 5,338 160 – Yes Yes Yes No No Company M HC Services – – – – No Yes 4,146 79 21 Yes – 62 No Yes Yes Yes Yes No

Services Company N (1) Business Services 98,879 77,900,000 – – No Yes 27,259 23 77 Yes 12,777 3,666 No Yes Yes Yes No No Company O (1) Business Services – – – – No Yes 425 20 80 No 2,130 18 – Yes Yes No No No Company P 19,496 23,805,843 74,734 – No Yes 6,290 61 39 No – 1,946 Yes Yes Yes Yes No No Company Q Financial Services 2,916 2,161,999 1,976 22 No Yes 730 47 53 Yes 6,052 120 No Yes Yes Yes No Yes Company R Financial Services 106 475,050 7,906 – No Yes 100 50 50 No 600 3 Yes Yes Yes Yes No No Company S Business Services – – – – No Yes 592 42 58 No 1,659 126 Yes Yes Yes Yes No No

Tech & Telecom Company T IT Services 108,363 75,986,905 – – No Yes 27,554 26 74 No – 4,384 No Yes Yes Yes No Yes Company U IT Services 11,170 72,653,777 273,391 – No Yes 28,385 70 30 No 287,962 20,275 Yes Yes Yes Yes No No Company V (1) IT Services – – – – No Yes 1,995 23 77 Yes 1,374 414 – Yes Yes Yes No No Company W Software 63,465 26,285,375 3,603 – No Yes 4,572 34 66 No – 445 Yes Yes Yes Yes No No Company X Software 3,394 4,858,885 4,934 1 No Yes 180 17 83 Yes 786 33 No Yes Yes Yes No No Company Y Software – – – – No Yes 646 67 33 No – 68 Yes Yes Yes Yes No No Company Z Telecoms 973 – 8,085 55 No Yes 1,096 64 36 No 9,032 138 Yes Yes Yes Yes No No

(1) Investments completed in 2013 did not participate in the KPI collection; inputted values derived from the pre-investment ESG due diligence. (2) Only those portfolio companies which participated in the KPI collection exercise are featured in the performance data overview together with those companies for which pre-investment due diligence was performed in 2013

Data representative of year ended 31.12.2012 Apax Partners 11 Sustainability Report 2012 ESG performance data:(1)(2) by Fund

Environmental Social Governance 31 December 2012 Subject of Compliance Compliance anti- CO2 with local with local Anti- corruption emissions Electricity Water Waste Serious environment Employees Women Men Diversity Sick days Voluntary Workers labour Code of corruption or anti- CSR Company Sector (tons) (Kwh) (m3) (tons) incidents regulations FTEs % % policy (FTEs) turnover Council regulations conduct policy prcompetition Report

Apax VIII (1) Company O Services – – – – No Yes 425 20 80 No 2,130 18 – Yes Yes No No No Company N Services 98,879 77,900,000 – – No Yes 27,259 23 77 Yes 12,777 3,666 No Yes Yes Yes No No Company V Tech & Telco – – – – No Yes 1,995 23 77 Yes 1,374 414 – Yes Yes Yes No No Company L Healthcare – – – – No Yes 2,700 74 26 Yes 5,338 160 – Yes Yes Yes No No Company H Consumer – – – – – Yes 12,665 – – Yes – – – Yes Yes No No No

Apax Europe VII Company A Consumer 248,367 200,000,000 4,000,000 20,311 No Yes 4,095 24 76 No 4,473 384 Yes Yes Yes No Yes No Company E Consumer 9,903 21,602,141 – – No Yes 16,886 93 7 No 50,648 – No Yes Yes Yes No Yes Company F Consumer 6,736 52,422,229 335,518 8 No Yes 1,224 68 32 No 23,068 50 Yes Yes Yes Yes No No Company C Consumer 2,906 1,458,613 – – No Yes 1,213 44 56 No 337 191 No Yes No No No No Company G Consumer 40,210 39,420,000 1,550 11 No Yes 5,031 41 59 No 4,986 – Yes No No Yes No No Company L Healthcare – – – – No Yes 2,700 74 26 Yes 5,338 160 – Yes Yes Yes No No Company K Healthcare 45,843 57,015,067 33,236 453 No Yes 5,092 51 49 Yes 7,870 1,784 Yes Yes Yes Yes No No Company O Services – – – – No Yes 425 20 80 No 2,130 18 – Yes Yes No No No Company Q Services 2,916 2,161,999 1,976 22 No Yes 730 47 53 Yes 6,052 120 No Yes Yes Yes No Yes Company S Services – – – – No Yes 592 42 58 No 1,659 126 Yes Yes Yes Yes No No Company Z Tech & Telco 973 – 8,085 55 No Yes 1,096 64 36 No 9,032 138 Yes Yes Yes Yes No No Company T Tech & Telco 108,363 75,986,905 – – No Yes 27,554 26 74 No – 4,384 No Yes Yes Yes No Yes Company W Tech & Telco 63,465 26,285,375 3,603 – No Yes 4,572 34 66 No – 445 Yes Yes Yes Yes No No Company U Tech & Telco 11,170 72,653,777 273,391 – No Yes 28,385 70 30 No 287,962 20,275 Yes Yes Yes Yes No No Company X Tech & Telco 3,394 4,858,885 4,934 1 No Yes 180 17 83 Yes 786 33 No Yes Yes Yes No No Company Y Tech & Telco – – – – No Yes 646 67 33 No – 68 Yes Yes Yes Yes No No

Apax Europe VI Company G Consumer 40,210 39,420,000 1,550 11 No Yes 5,031 41 59 No 4,986 – Yes No No Yes No No Company B Consumer 11,305 18,261,567 26,938 39 No Yes 1,476 41 59 No 9,669 63 Yes Yes Yes Yes No Yes Company E Consumer 9,903 21,602,141 – – No Yes 16,886 93 7 No 50,648 – No Yes Yes Yes No Yes Company M Healthcare – – – – No Yes 4,146 80 20 Yes – 62 No Yes Yes Yes Yes No Company J Healthcare 51,825 59,612,242 343,497 2,996 No No 7,791 78 22 Yes 44,115 1,722 No Yes Yes Yes No Yes Company I Healthcare – – – – No Yes 10,142 82 18 Yes – – Yes Yes Yes Yes Yes No Company R Services 106 475,050 7,906 – No Yes 100 50 50 No 600 3 Yes Yes Yes Yes No No Company P Services 19,496 23,805,843 74,734 – No Yes 6,290 61 39 No – 1,946 Yes Yes Yes Yes No No Company S Services – – – – No Yes 592 42 58 No 1,659 126 Yes Yes Yes Yes No No Company U Tech & Telco 11,170 72,653,777 273,391 – No Yes 28,385 70 30 No 287,962 20,275 Yes Yes Yes Yes No No Company T Tech & Telco 108,363 75,986,905 – – No Yes 27,554 26 74 No – 4,384 No Yes Yes Yes No Yes Company X Tech & Telco 3,394 4,858,885 4,934 1 No Yes 180 17 83 Yes 786 33 No Yes Yes Yes No No Company W Tech & Telco 63,465 26,285,375 3,603 – No Yes 4,572 34 66 No – 445 Yes Yes Yes Yes No No

Apax Europe V Company D Consumer 104,586 193,477,851 177,977 4,669 No Yes 7,612 78 22 Yes 43,049 – Yes Yes Yes Yes No Yes Company P Services 19,496 23,805,843 74,734 – No Yes 6,290 61 39 No – 1,946 Yes Yes Yes Yes No No

; (1) Investments completed in 2013 did not participate in the KPI collection; inputted values derived from the pre-investment ESG due diligence. (2) Only those portfolio companies which participated in the KPI collection exercise are featured in the performance data overview together with those companies for which pre-investment due diligence was performed in 2013

Data representative of year ended 31.12.2012 Case Study: Case Study: Case

In May 2010, Apax Partners Funds completed their first investment in Brazil when they de-listed TIVIT, TIVIT, de-listed they when Brazil in investment first their completed TIVIT, Funds de-listed Partners they Apax when 2010, Brazil May In in investment first their completed Funds Partners Apax 2010, May In a leading integrated IT and Business Process Outsourcing supplier in Latin America. America. Latin in supplier Outsourcing Process Business and IT integrated America. leading Latin a in supplier Outsourcing Process Business and IT integrated leading a Apax Partners Sustainability Report 12 screening rigorous a to subject was investment the 2010, after completed screening investments rigorous a to Apax all subject with As was investment the 2010, after completed investments Apax all with As Case Study: which in sectors the Because completion. final and signing between which place in took sectors which the PwC, by Because process completion. final and signing between place took which PwC, by process Apax invests typically have a relatively ‘light’ environmental impact, the screening process is purpose built built purpose is process screening the impact, environmental ‘light’ built relatively a purpose have is typically process invests screening Apax the impact, environmental ‘light’ relatively a have typically invests Apax to explore risks and opportunities across the whole Environmental, Social and Governance spectrum. spectrum. Governance and Social Environmental, whole the across spectrum. opportunities and risks Governance and explore to Social Environmental, whole the across opportunities and risks explore to In May 2010, Apax Partners Funds completed their first investment in Brazil when they de-listed TIVIT, a leading integratedCase IT and Business study Process Outsourcing supplier in Latin America. included: identified were that risks and opportunities major TIVIT, of case the In included: identified were that risks and opportunities major TIVIT, of case the In

As with all Apax investments completed after 2010, the investment was subject to a rigorous screening Risks Opportunities Risks Opportunities process by PwC, which took place between signing and final completion. Because the sectors in which Apax invests typically have a relatively ‘light’ environmental impact, the screening process is purpose built Contamination - Environmental Efficiency Contamination - Energy Environmental Efficiency Energy to explore risks and opportunities across the whole Environmental, Social and Governance spectrum. Overview Safety & Health Procurement Sustainable Safety & Health Procurement Sustainable In the case of TIVIT, major opportunities and risks that were identified included: Failure Controls Governance Structure Management Failure Sustainability Controls Governance Structure Management Sustainability In May 2010, Apax Partners Funds completed their first investment in Satisfaction Staff Programme Engagement Employee Satisfaction Staff Programme Engagement Employee Opportunities Risks Brazil when they de-listed TIVIT, a leading integrated IT and Business Safety & Health Biodiesel - Environmental Safety & Health Biodiesel - Environmental Energy Efficiency Environmental - Contamination Process Outsourcing supplier in Latin America. Chain Supply KPIs Sustainability Chain Supply KPIs Sustainability Sustainable Procurement Health & Safety Sustainability Management Structure Governance Controls Failure to was challenges first the of one mergers, many of result the as formed to was was that challenges company first large the a of is one TIVIT As mergers, many of result the as formed was that company large a is TIVIT As Employee EngagementIn the case Programme of TIVIT, major ESG opportunities Staffand risksSatisfaction that Specific areas where the management team identified quantifiable where areas identify and guidelines best-practice introduce done, quantifiable being where already areas was what identify and assess guidelines best-practice introduce done, being already was what assess were identified at the time of the investment were included: the potential for measurable improvements include: Environmental - Biodiesel Health & Safety achieved. be could savings achieved. be could savings Sustainability KPIs Supply Chain Opportunities Risks include: improvements measurable for potential the identified team include: management the where improvements areas measurable Specific for potential the identified team management the where areas Specific Energy Efficiency Environmental – Converting Data Centres to sustainable bio-diesel As TIVIT is a large company that was formed as the result of many mergers, one of the first challenges was to bio-diesel sustainable to Centres Data Converting Contamination bio-diesel sustainable to Centres Data Converting assess what wasSustainable already beingProcurement done, introduce best-practice guidelines and identifyCarbon areas wherereduction quantifiable Carbon reduction Carbon savings could be achieved. Health & Safety reduction Carbon Sustainability Management Establishing guidelines for environmental best practice practice best environmental for guidelines Establishing Specific areasStructure where the management team identifiedGovernance the Controlspotential Failurefor measurable improvements include: practice best environmental for guidelines Establishing Recycling hardware from data centres Recycling hardware from data centres data from hardware Recycling centres data from hardware Recycling Employee Engagement Staff Satisfaction Converting Data Centres to sustainable bio-diesel Ensuring that 100% of sourcing is from sustainable Programme suppliers sustainable from is sourcing of 100% that Ensuring suppliers sustainable from is sourcing of 100% that Ensuring Carbon reduction Health & Safety suppliers turnover staff and absenteeism reduce to order in employees for environment working the in Investing Environmental – Biodiesel turnover staff and absenteeism reduce to order in employees for environment working the in Investing Establishing guidelines for environmental best practice Supply Chain Investing in the working environment for employees Implementing governance structure around sustainability around structure governance Implementing sustainability around structure governance Implementing Recycling hardwareSustainability from data centres KPIs in order to reduce absenteeism and staff turnover Ensuring that 100% of sourcing is from sustainable suppliers Implementing governance structure around sustainability the of findings the embraced has team management the investment, the the of for days findings early the relatively embraced still is it has team While management the investment, the for days early relatively still is it While Investing in the working environment for employees in order to reduce absenteeism and staff turnover The investment. the of life the over focus will it which on areas the The identified has and investment. the report of PwC life the initial over focus will it which on areas the identified has and report PwC initial Implementing governanceAs TIVIT isstructure a large around company sustainability that was formed as the result The management team has embraced the findings of the benchmarks these against performance monitoring for ideal is model equity private benchmarks the of these nature against long-term performance monitoring for ideal is model equity private the of nature long-term of many mergers, one of the first challenges was to pre-investment analysis and has identified the areas on believe we long-run, the In accountable. held be can team management the believe we which to long-run, metrics the In establishing and accountable. held be can team management the which to metrics establishing and While it is still relatively early days for the investment, the management team has embraced the findings of the assess what was already being done, introduce best- which it will focus over the life of the investment. The long- our for and operates it which in world the for TIVIT, for performance stronger to lead will process this that initial PwC report and has identified the areas on which it will focus over the life of the investment. The our for and operates it which in world the for TIVIT, for performance stronger to lead will process this that practice guidelines and identify areas where quantifiable term nature of the private equity model is ideal for monitoring www.apax.com/our-culture visit please information more For investors. www.apax.com/our-culture visit please information more For investors. long-term naturesavings of the could private be achieved. equity model is ideal for monitoring performance againstperformance these benchmarks against these benchmarks and establishing and establishing metrics to which the management team can be held accountable. metricsIn the long-run, to which we the believe management team can be held that this process will lead to stronger performance for TIVIT, for the world in which itaccountable. operates and In for the our long-run, we believe that this process investors. For more information please visit www.apax.com/our-culture will lead to stronger performance for TIVIT, for the world in which it operates and for our investors.

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Photograph: ServerPhotograph: rooms Server at TIVIT rooms at TIVIT Apax Partners 13 Sustainability Report Apax Foundation Striving to make a positive contribution

The Apax Foundation and the Apax U.S. Foundation are the channels for Apax Partners’ corporate giving globally and have made donations averaging over £1 million a year since the Foundations’ inception in 2006. Trustees of The Social entrepreneurship was chosen Foundation The Apax Foundation as the focus for the Apax Foundations’ is chaired by Sir Ronald Cohen and Social entrepreneurship Apax staff ‘matching’ scheme major grant giving as it is the natural its Trustees include: Social entrepreneurship is the main focus of the Apax Our matching scheme is designed to encourage and support extension of what Apax does Foundation’s charitable giving. We support a range of charities, our team’s personal involvement with charities close to their Simon Cresswell commercially and builds on the large and small, working to help people in deprived communities hearts. The Apax Foundation has made total cumulative Partner, General Counsel to lift themselves out of poverty through enterprise. The Apax donations of £1.4 million to charities to which members of Firm’s history of support in that area, Apax Partners Foundation has made total cumulative donations of £3 million the Apax team have given their time and skills. most notably as one of the founders Peter Englander to charities working in this field. CEO of the Apax of Bridges Ventures. It is also an area Foundation where some of the Foundations’ Trustees Martin Halusa have significant experience. This provides Chairman, Apax Partners us with a steady flow of introductions David Marks Senior Taxation Advisor, to leading charities in the field, both Apax Partners from within the firm and from John Megrue our wider network. Chairman, Apax Partners U.S. The Foundations have also continued Shashank Singh their commitment to our staff Partner, Apax Partners ‘matching’ scheme and the private Michael Phillips Impetus – The Private Equity Foundation Social investments Partner, Apax Partners Impetus – PEF accelerates the growth of innovative charities A proportion of the Foundation’s invested endowment fund is equity community’s collective charity, Mitch Truwit and social enterprises helping disadvantaged children and allocated to social investments - in other words, investments Impetus – The Private Equity Foundation. Co CEO, Apax Partners young people to get the start in life they deserve. that generate a positive social impact as well as a financial return. The most significant of these is Finance in Motion, whose mandates include the European Fund for Southeast Europe (EFSE) and the Green for Growth Fund Southeast Europe. Apax Partners 14 Sustainability Report Apax Foundation continued

The Apax Foundation’s social entrepreneurship portfolio Social entrepreneurship examples emcompasses a mix of enterprising start-ups and larger, more established organisations. We look to fund projects that will bring lasting economic and social benefits, and to support charities in all the regions in which Apax operates.

Social entrepreneurship

Charity Period Country Emmaus UK Grameen America North America

Ashoka 3 years Germany Emmaus is an international movement which creates Grameen America is a not-for-profit microfinance organisation communities for the homeless, offering them a home, work founded by Nobel Laureate Prof. Muhammad Yunus, providing Emmaus 3 years initially followed and the chance to rebuild their lives in a supportive family small loans to people of limited means in the US to enable by 2-year re-commitment UK environment. The communities aim to be self-sustaining them to start up their own small businesses. The Grameen Grameen America 3 years initially followed through their on-site enterprises, such as restoring and re- concept, which specifically aims to help the poorest, is new to by 3-year re-commitment US selling used furniture and electrical goods. the U.S. and the Apax Foundation was one of its early backers. INSEAD Social Entrepreneurship Programme 2 years France/Singapore Joblinge 1 year initially followed by 3-year re-commitment Germany Millennium Promise 3 years Africa Mosaic 3 years initially followed by rolling 1-year re-commitment UK Non-Profit Incubator / Xingeng Workshop 3 years China Opportunity Network 3 years US Prince’s Trust 1 year UK Joblinge Germany Millennium Promise Africa Shivia 3 years India Joblinge works to reduce youth unemployment in Germany Millennium Promise’s goal is to halve extreme poverty in through a 6-month programme targeting unemployed high Africa by 2015. Its flagship initiative is the Millennium Villages Social Finance 2 years UK school leavers. Joblinge targets the most challenging cases, project which operates in 80 villages across ten countries in who have already been through government training sub-Saharan Africa, reaching over 500,000 people. The Apax Trickle Up 1 year initially followed by India, 2-year re-commitment West Africa, schemes without success. Its programme consists of U.S. Foundation’s donation funds the new post of Director Central America training, intense mentoring, internships and ongoing coaching of Business Development, with a remit to help create throughout the participants’ apprenticeship, with a job sustainable enterprises in the villages to secure a stable future placement as the final aim. The programme has proved 4-6 for the inhabitants. times more effective than comparable government schemes. Apax Partners 15 Sustainability Report Our values Our shared investment values

Overview Values across the Apax Partners portfolio Shaping our industry’s values Portfolio companies are encouraged to lead in corporate We are committed to working with the industry on We are proud signatories of the UN’s Principles Private equity is a long-term business, social responsibility, because we believe that sustainably corporate responsibility issues including environmental, for Responsible Investment (UNPRI) and to the and depends on the trust it receives run businesses ultimately help drive better returns for social and governance best practice, as well as raising Private Equity Council’s Guidelines our investors. the standard of transparency and disclosure to all our for Responsible Investment. from investors, business owners and stakeholders. As such, we were engaged from the We are proud of what we do: backing management to See the UNPRI website for full details at www.unpri.org earliest stages in the development of the Walker release the full potential of their businesses through management teams. Our values are Guidelines on Transparency and Disclosure in the UK, See the Private Equity Growth Capital Council website insight and patient long-term investment. We remain and are involved with industry associations in other for the full list at www.pegcc.org crucial in everything we do. aware of our responsibilities at all times, and are guided countries in their creation of similar codes. by our values. We apply our values equally wherever we operate. They inform our interactions with employees, suppliers and our local communities, as well as the Apax Funds’ Our values are built on five key pillars investors and portfolio companies. Apax Funds do not invest in companies involved in firearms, pornography or that derive significant revenues from the production or sale of tobacco.

Integrity Stewardship Community Relationships People Apply the highest Act in the long-term Act with respect and Create long-term Treat people with standards of integrity interests of the consideration for the relationships founded dignity and respect. in dealings with all environment and communities in which on mutual advantage. Do not discriminate stakeholders. the companies in we operate. on any grounds. which our funds invest. Apax Partners 16 Sustainability Report Conclusion Continuing the journey

The findings from our ESG Sustainability reporting across the Apax Partners portfolio performance review will help put in place action plans for improvement NEW LOOK ETHICAL for those companies where it is TRADE REPORT required, or identify companies 2012–2013 which can benefit from sharing best practices with other Apax Partners C S R Social RepoRt 2012 Corporate SoCial reSponSibility portfolio companies. 2012

By 2015 we aim to have engaged 1 Everybody wants to look good.

Read more Read more Read more Read more Read more 100% of the Apax Partners portfolio in the measurement of their environmental, social and governance impact. Find out more at www.apax.com/responsibility Designed and produced by Friend. www.friendstudio.com