A collective v i s i o n o f solidarity

2019 Activity Report Ardian is a world-leading private investment house. We are an employee-controlled company – global in outlook but with our roots in Europe – managing and advising more than $100 billion of assets on behalf of government agencies, pension funds, insurance companies and private clients. We specialize in five areas of activity: Fund of Funds, Direct Funds, Infrastructure, Private Debt and Real Estate. Our mission is to generate sustainable, long-term returns for our clients alongside positive social impact that benefits all our stakeholders and society at large.

$100Bn of assets managed or advised

1,060 investors

664 employees

01 Corporate

04. Foreword Dominique Senequier

06. Point of view Supervisory Committee

08. Increasing our resilience and diversity Executive Committee

Advocating Sustainability Our investment responsible activities 32. finance The sustainability challenge 52. demands constant innovation We span the private 22. investment market Investor Relations: committed to 34. delivering world-class service A unique view of the fund of 54. funds industry’s ESG evolution to our clients Fund of Funds

24. 36. 58. Building tools to address Mandates: benefiting from Buyout another year of rapid growth climate change 64. 26. 38.

SUMMARY Expansion Compliance: safeguarding The Ardian Foundation: our clients, portfolio assets increased resources to fund 70. and Ardian our programs and respond to COVID-19 Growth 27. 76. Legal: ensuring we build Ardian North America Fund on solid foundations 80. 28. Co-Investment Our journey Technology: our digital Trusting talented transformation gathers 86. momentum people, today 12. Infrastructure How a single French LBO fund and tomorrow spawned a global company 92. 42. Private Debt 14. Diversity will strengthen Ardian in numbers our collective intelligence 98. Real Estate 16. 44. Our network spans the world Millennial Executive Committee: Ardian’s younger generation 18. makes its mark Highlights of 2019 46. We offer talented people many routes to success

02 03 Foreword

DOMINIQUE SENEQUIER President of Ardian

We are living through extraordinary Ardian has a culture of careful, cautious times. Although this document must investment and I am sure this will serve us stand as an account of our work during well in the testing times we all now face. 2019, Ardian’s progress and the The company we have built over the past successes we achieved necessarily give two decades is responsible, resourceful way to more immediate concerns. and resilient. In the months ahead, we will As I write, whole continents are gripped seize every opportunity to demonstrate by the pandemic that began in the final these qualities. days of December 2019. Today, millions of people’s livelihoods, hopes and plans Our immediate priorities have been are frozen while we wait for this shadow to ensure our colleagues and partners to lift. are safe, and to join the fight against this deadly pandemic. The Ardian At moments like these, our responsibilities Foundation has created a dedicated fund, are clearer than ever – to our clients, representing 10% of its annual budget. our employees and the many companies Ardian, alongside its employees, has we support. My greatest pride today provided further funds to support hospital is that Ardian understands those care, health workers and medical

CORPORATE responsibilities and has the strength research. At the same time, many of our and determination to fulfil them. portfolio companies are contributing vital products and services to the global “war effort”. Finally, we have decided “At moments like these, that Ardian will not ask for any state support on its own account. Other our responsibilities are companies’ needs are greater than ours. clearer than ever.”

Huge numbers of people depend on our portfolio companies and the exceptional entrepreneurs that lead them: employees, customers, suppliers, families, communities and alongside them the millions of savers whose money we invest. I want to reassure all these people that we at Ardian will do everything we can to protect and sustain businesses and jobs through this crisis, just as we did 12 years ago. We will continue to support our companies and to provide vital liquidity to the secondary market, so that institutions can actively manage their private-market portfolios in the best interests of their savers.

04 05 Point of view SUPERVISORY COMMITTEE

This has necessarily increased the PATRICK THOMAS pressure on our committee to ensure Chairman that the organization can meet the of the Supervisory growing demands placed upon it. Committee Ardian expanded the risk teams in London and Paris and invested massively in IT, to strengthen its focus on areas we consider critical for the company’s future. In particular, responsibility for its technology From the beginning, our mission as a development has passed to Mathias Supervisory Committee has been to Burghardt, Member of the Executive make sure Ardian has the same level of Committee and Head of Ardian Infrastructure. governance as a major public company. We have devoted much of our time to Our Audit and Risk Committee has anticipating and addressing risks within remained extremely vigilant about Ardian’s organization and processes. With potential cybersecurity threats, both the world now suffering the first pandemic to the very large money transfers that in a century, we are very glad that we did Ardian must necessarily make but also so – this does not guarantee everything, to the highly confidential information of course, but it puts Ardian in a stronger Ardian holds on its clients and investments. position and reminds us daily that we must With our full support, the company never stop trying to improve the way this has invested significantly in IT risk

CORPORATE company operates and manages its risks. management by recruiting external specialists in digital security.

“Ardian is a strong company, Ardian now has a wealth of talent to draw upon and a robust international thanks to its governance organization, with 15 offices around the world. Its activities in North America and the talented people are well underway and we are proud whom it can call upon.” of the excellent progress the company FROM LEFT TO RIGHT is making in its latest activity, Real Estate.

PASCAL CHRISTORY DIDIER DECONINCK PATRICK THOMAS JEAN-MICHEL VERHAEGEN Even with the current challenging The COVID-19 pandemic poses very Vice-President of the Chairman of the OLAF BONOTTO FRANÇOIS MORRISSON circumstances in mind, it is still only right significant challenges to Ardian, Supervisory Committee Supervisory Committee that we assess the past year: 2019. It was its portfolio companies and its wider GIOVANNA TRUCCO a period of extraordinarily rapid change stakeholders. However, even in periods for Ardian. Assets under management or when market conditions were exceptionally advice grew by about 25% in a year and buoyant, Ardian resisted the temptation have now exceeded $100bn, confirming to stray from its cautious and disciplined the company’s position among the largest approach. It still holds to that approach. private market investment houses in the We are therefore confident that Ardian is world. To support this increase, Ardian strong enough to sustain itself and support recruited over 100 new staff members to its stakeholders through to better times. reach a headcount of 664, challenging its teams to help many new colleagues Finally, I wish to welcome a new member to gain an understanding of Ardian’s unique the Supervisory Committee, Mrs. Giovanna corporate culture. Trucco, who joined us during 2019.

06 07 Increasing our resilience

and diversity We are investing heavily in technology to increase efficiency and productivity, EXECUTIVE COMMITTEE and give our investors a better, more streamlined experience. And we continue to focus relentlessly on attracting and 2019 was an exceptionally strong retaining talented people who share year for our company. our values and culture of service. DOMINIQUE SENEQUIER We closed record funds for Infrastructure, President of Ardian Co-Investment and Private Debt, A central element of our plans to strengthen and completed a series of landmark Ardian is to bring greater diversity, in all transactions in Secondary Fund of Funds its facets, to our company. Last year, and with our Buyout team in Europe and we decided to join the Investor Leadership in the US. Infrastructure continued to forge Network, an organization founded in ahead in North America and signed 2018 after the G7 in Canada to encourage a very large debut deal in Germany, collaboration between leading investors a country in which our Mandates team on issues related to sustainability and also had major wins. Ardian Growth long-term growth. We are supporting the saw the creation of its first $1bn portfolio Investor Leadership Network's (ILN) work company with Ivalua, a world-leading on increasing and measuring diversity. e-procurement platform. We believe that by making Ardian more diverse, we will also make it stronger. MARK BENEDETTI MATHIAS BURGHARDT VLADIMIR COLAS OLIVIER DECANNIÈRE After attracting 173 new investors Co-Head of Ardian US Head of Ardian Infrastructure Co-Head of Ardian US Head of Ardian UK last year, we now have more than We are also working to increase the 1,000 Limited Partners (LPs). And to positive impact of our investments and support them, we have continued we continue to share the profits we generate

CORPORATE to hire more people than ever, as on exit with the employees of our portfolio 106 new employees joined in 2019. companies. We are strengthening and expanding our Foundation to help more people turn their aspirations for social “We are investing heavily in mobility into reality. To accelerate this process, we decided during 2019 to donate our technology and focusing a portion of Ardian’s carried interest to the Foundation, which will boost its financial relentlessly on attracting and resources over the next few years. retaining talented people.” JÉRÉMIE DELECOURT VINCENT GOMBAULT PHILIPPE POLETTI In the months ahead, and the years that Head of Corporate and Head of Fund of Funds Head of Ardian Buyout will follow the COVID-19 crisis, we are International Development and Head of Private Debt Of course, these successes came before certain that these decisions and initiatives the COVID-19 pandemic brought the will make us stronger and more resilient. global economy to a near-standstill. We are examining every aspect of our Although we face a formidable challenge investments to ensure we are as well from the effects of COVID-19, we begin positioned as possible to withstand its the new decade in a strong position. challenges and provide the support that We have a talented workforce and a our companies and investors need. strong, well-resourced organization that Indeed, even before this calamity struck, can withstand the pressures. Although the we were keenly aware that market conditions period ahead is extremely uncertain, were becoming much more challenging and we face the future with confidence and a that we needed to select our investments firm belief that by standing by our partners NICOLÒ SAIDELLI JAN PHILIPP SCHMITZ BENOÎT VERBRUGGHE with ever greater care and do all we could and supporting each other, we can all Head of Ardian Italy Head of Ardian Germany, Head of Ardian US and to strengthen our organization. come through these challenging times. Asia and Mandates Head of Investor Relations

08 09 O u r journey

Over more than 20 years, our company has moved beyond its roots in France, first across Europe and then into Asia and the Americas. Wherever we go, we connect local knowledge and contacts to our powerful international network. OUR JOURNEY OUR

12. 16. How a single French LBO fund Our network spans the world spawned a global company 18. 14. Highlights of 2019 Ardian in numbers

10 How a single French LBO fund spawned a global company Over the past 24 years, Ardian has grown from small beginnings into a world-leading private investment house – here is our story.

CREATION 1996 We came into being in 1996, when Claude Bébéar, chairman of AXA, asked Dominique Senequier to create INDEPENDENCE a private equity arm for the insurer. 2013 He promised to invest one franc for every In 2013, Dominique Senequier led an two she raised from outside investors. employee buyout of AXA Private Equity Bébéar’s pledge fostered a huge and created Ardian – Europe’s leading determination in the young company to private investment house, with 320 staff win clients and turn them into long-term and $36 billion under management partners by delivering excellent service or advice. and outstanding investment performance. investment teams in the major European AXA Private Equity launched with a centers has proved a key competitive $100 million French Buyout fund and advantage. The network expanded in ACCELERATION two external clients. Two decades later, 2007 when we opened in Milan, led 2013 ONWARDS OUR JOURNEY OUR Bébéar recalled: “I gave her 25 million, by Nicolò Saidelli, giving us unrivaled Achieving independence opened a new I think it was in francs, and she achieved reach in France, Germany and Italy. chapter that saw our growth rate incredible growth.” accelerate. We moved into Real Estate, In parallel, further investment activities now led by Stéphanie Bensimon, and were launched: the Expansion team under also opened offices in Madrid and François Jerphagnon in 2002, followed San Francisco in 2015. Our growing GROWTH three years later by Infrastructure, headed focus on sustainability earned us 1996-2013 by Mathias Burghardt, and Private Debt, a score of A+ from the UN Principles The company expanded into new asset today led by Mark Brenke. Ardian is now for Responsible Investment in 2015 classes and built its international network. Europe’s biggest infrastructure investor for our overall ESG policy. The Buyout team, led by Philippe Poletti, and a leading provider of private debt was joined in 1998 by the Growth team, to European LBOs. In 2005, we also We celebrated the company’s 20th now led by Laurent Foata and in 1999 launched Co-Investment, now co-headed anniversary in 2016 with a major by our Secondary Fund of Funds business, by Alexandre Motte and Patrick Kocsi. expansion plan, targeting North America led by Vincent Gombault. Set up to trade for our next phase of growth. In the portfolios of private equity holdings, In 2008, Dominique Senequier signaled following three years, we launched it is now the world’s biggest Secondary the company’s increasing focus on our Ardian North America Fund activity Fund of Funds investor. That year, we also responsible investment with a public and Infrastructure fund in the US, opened our first international offices pledge to share, wherever possible, part expanded in Asia with offices in Tokyo in London and New York. of the company’s capital gains on exit and Seoul and opened our first South with employees of the company involved. American office, in Santiago. In 2020, We laid the foundations of our “multilocal” Our focus on social impact intensified Ardian's 664 staff members are strategy in 2001 with the opening two years later, with the launch in 2010 responsible for $100 billion of assets, of the Frankfurt office, today headed of the Ardian Foundation, dedicated to placing us among an elite global by Jan Philipp Schmitz. Creating local promoting social mobility. group of private investment houses.

12 13 Ardian in numbers

FIGURES AS OF DECEMBER 31, 2019

$ Bn 1,060 $16Bn 100 INVESTORS RAISED IN 2019 96

90 $7.3Bn OUR JOURNEY OUR DISTRIBUTED TO OUR INVESTORS IN 2019

67

60

55 $13Bn €4Bn €57M+

50 invested through our Fund invested across our of capital gains of Funds platform across Direct, Infrastructure, has been distributed to 62 primary commitments Private Debt and Real 23,200 employees from and 23 secondary Estate activities 31 companies exited transactions in 2019 in 99 transactions, by Ardian since 2008 of which 36 were 2014 2015 2016 2017 2018 2019 2020 build-ups in 2019

ASSETS UNDER MANAGEMENT

14 15 Our network Europe:

spans the world Paris Luxembourg Ardian’s multilocal network is unrivaled. We have a leading position in the core We aim to be close to our clients and to Frankfurt Madrid Eurozone economies and are growing in Western and Southern Europe and the UK. plug our investment teams’ local knowledge Jersey Milan into a powerful, global network. London Zurich OUR JOURNEY OUR

Asia: Beijing Americas: Seoul New York Singapore San Francisco Tokyo Santiago We have doubled our offices in Asia over We have a growing presence in North the past two years in response to a strong America through our Fund of Funds, appetite to invest from Asian institutions. Buyout and Infrastructure activities, We continue to explore direct investment and are expanding in South America. opportunities.

16 17 Highlights of 2019

Jan Philipp Schmitz, Member of the Executive Committee, Head of Ardian Germany, Asia and Mandates OUR JOURNEY OUR

Philippe Poletti, Member of the Executive Committee and Head of Ardian Buyout, and Candice Brenet, Head of Sustainability

March 2019 April 2019 June 2019 September 2019 November 2019 December 2019 January 2020 INFRASTRUCTURE FUND V OPENING CEREMONY ARDIAN RECEIVES AN FIFTH-GENERATION ARDIAN JOINS THE FUND OF FUNDS PRIVATE DEBT FUND IV CLOSES AT RECORD FOR NEW TOKYO OFFICE AWARD AT 2019 ESG BEST CO-INVESTMENT FUND INVESTOR LEADERSHIP SECONDARY CLOSES ABOVE €6.1 BILLION Jan Philipp Schmitz, PRACTICES HONORS ATTRACTS $2.5 BILLION NETWORK TRANSACTION FUNDRAISING TARGET OF THE YEAR Ardian Infrastructure Head of Asia, welcomed We were honored in the Co-Investment Fund V The Investor Leadership Ardian Private Debt closed more than doubled around 100 local LPs, “Multi-strategy Investment closed at a record size, Network brings together Ardian Fund of Funds its fourth-generation fund the size of its previous General Partners (GPs) Platform” category at more than doubling the 14 major institutions closed the largest ever at €3 billion, above vehicle, closing Europe’s and contacts, and the 6th edition of the sum raised for Fund IV. and asset managers secondary transaction, the original €2.5 billion biggest-ever fund in confirmed Ardian’s “2019 ESG Best Practices It attracted 190 LPs from from Europe and North a landmark deal in target. The fund has a just six months. Some intention to expand its Honors” organized by Europe, the US and Asia, America to address which Ardian acquired broader mandate than 125 investors subscribed, activities in Japan and Swen Capital Partners. tripling the LP base. issues of sustainability a $5 billion portfolio its predecessor, including 30% of whom were build new relationships. The judging panel and long-term growth. from a financial stretched senior debt. new to Ardian. included representatives We are contributing institution. of the OECD and UN PRI. to the ILN’s diversity work stream.

18 19 Advocating responsible finance

Ardian’s success has been built on a longstanding culture of excellence and service. We pursue the highest professional standards and develop advanced tools to help us protect our clients’ interests and safeguard our reputation as a trusted partner. ADVOCATING RESPONSIBLE FINANCE ADVOCATING

22. 27. Investor Relations: committed Legal: ensuring we build to delivering world-class on solid foundations service to our clients 28. 24. Technology: our digital Mandates: benefiting from transformation gathers another year of rapid growth momentum

26. Compliance: safeguarding our clients, portfolio assets and Ardian Investor Relations: committed to delivering world-class service to our clients The heart of the investor relations Personal service remains the foundation of experience in our industry is still direct personal relationships. We are committed Ardian’s relationship with investors. As the to meeting our investors regularly number of LPs grows, we are investing heavily – individually and at private events – and to providing traditional service with in the technology and people we need a human face. But digital contact is to provide high-quality service at scale. increasingly important in the world we live in, and its role will continue to expand. Thus, to maintain our approach as we grow, we increasingly need to combine personal service with technology tools 173 that will allow us to maintain our speed new clients of response and efficiency. making first investments with We are investing in both customer-facing Ardian in 2019 Ardian’s investor base grew quickly and reporting technology to strengthen our during 2019 as our expanded office Investor Relations offering. The state-of- network allowed us to form many the-art investor portal we are developing new relationships all over the world. will give each LP an individual dashboard 1,060 We closed record funds for our with detailed information on their Infrastructure, Private Debt and investments across all Ardian’s activities. investors Co-Investment activities, all of them We are investing to automate essential including 490 High Net Worth at least twice the size of the previous administrative processes that remain Individuals generation, and now have more than largely manual, such as the preparation 1,000 LPs. of subscription documents and standard BENOÎT VERBRUGGHE regulatory processes. These initiatives will

ADVOCATING RESPONSIBLE FINANCE ADVOCATING Member of the Executive Committee To support this rapidly growing group deliver an enhanced investor experience of investors, we are strengthening our and significant efficiency gains. 3.2 client servicing infrastructure so that products per we can continue to deliver the world- Alongside our expanding network client on average class customer experience they expect. of institutional relationships, we are Our Investor Relations team, comprising attracting a large number of High Net Product Marketing, Sales and Client Worth Individuals (HNWI). This category Servicing, now numbers 60 people after of investors has a growing appetite 10 new team members joined in 2019. for private market opportunities but continues to face barriers, mainly due to high minimum investments per fund and regulatory constraints in some countries. “The infrastructure that supports Over the past few years, a number of our customer service must be as private banks have set up feeder funds and other structures to meet this growing strong as our fundraising capacity. demand from HNWIs. We see it as We have to concentrate on a key priority to continue developing achieving world-class quality.” strong relationships with private banks although we are also closely monitoring the emergence of new distribution channels using digital platforms.

22 23 Mandat es: benefiting from another year of rapid growth Focus Germany’s first Institutions show strong appetite for Ardian sovereign wealth fund partners Mandates’ flexibility and the benefits of Ardian’s with Ardian global scale and privileged market access.

Our Mandates activity continued to grow strongly in 2019, with 10 new mandate $3Bn commitments worth about $3 billion new mandate confirmed, including our selection by volume raised in 2019 KENFO, Germany’s first sovereign wealth KENFO was established by the German with someone who already has those fund, to manage a large private markets government in 2017 to manage the relationships and resources. Ardian, allocation. This was one of the most keenly country’s first sovereign wealth fund, with its large team and established contested Mandates of the year, pitting which will finance the long-term storage industry network, will source attractive Ardian against many leading European $4Bn of nuclear waste from the country’s investment opportunities across markets and US players. decommissioned power plants. KENFO for our mandate, perform state JAN PHILIPP SCHMITZ deployed was set up with €24 billion contributed of the art due diligence, and monitor Head of Mandates, in 2019 The strength of Ardian’s own range of by the nuclear industry and will allocate our growing portfolio. Ardian Germany and Asia, and Member of funds, coupled with the excellent access about 30% of its capital to illiquid ADVOCATING RESPONSIBLE FINANCE ADVOCATING our Fund of Funds platform gives us assets, including private equity. We looked at the entire market and the Executive Committee DANIEL RATHMANN to primary fundraisings by top third-party Daniel Rathmann, Investment Manager conducted a competitive manager Investment Manager managers, is proving very attractive. 10 at KENFO at KENFO, explains why it is working search process in which we assessed Last year, our main markets for mandate new mandate with Ardian. areas such as track record, team stability, growth were in Europe (Germany, commitments access to quality target funds as well confirmed in 2019 France, Switzerland, Italy), where “We want a global buyout portfolio with as managers’ local presence in different “Our Mandates activity will our long-established local presence small, mid and large cap holdings and parts of the world – we don’t like only become more important is providing a key advantage. a small exposure to growth and turnaround. managers who just fly in and out. A mandate structure was right for us It was a thorough process and we felt in the future. A growing Mandates will remain a critical area because it doesn’t make sense to build that Ardian met our expectations. group of clients now wants of growth for Ardian as more clients take a large global in-house team for our In addition, we have been assigned tailored portfolios rather the opportunity to build individually private equity allocation. We want to be dedicated local contacts, including tailored portfolios, spanning different hands-on and participate in the ultimate senior investment professionals in than standardized products.” asset classes, regions and market decisions regarding portfolio construction Germany for any regular and ad-hoc segments, with the legal structuring and and the target funds to be subscribed. information requirements.” level of active involvement that suits their However, it is currently not practical needs. Our goal for 2020 and beyond for us, nor do we have the resources is to consolidate our strong position at the moment, to build close relationships in Europe for Mandates and increase with multiple GPs within a short period our presence in the Americas, Asia and of time and monitor them over the longer the Middle East. term. Therefore, we need to partner

24 25 Compliance: safeguarding Legal: ensuring we build our clients, portfolio on solid foundations assets and Ardian Ardian’s work is underpinned by a strong focus on the rules and principles that Our priority is not just to follow regulations: define how the company is run and how it is to protect our investors, our portfolio it manages relationships with every investor. companies and Ardian.

As a general trend, we are being asked to advise investment teams more frequently on a broad range of topics. These include the laws and regulations that govern the Our Compliance team, which is based formation and management of mandates, Our legal team provides the safeguards across our offices in Paris, London, funds and deals, as well as help with that protect our company and everyone New York and Singapore, is responsible fulfilling obligations during an acquisition. who invests with us. They are the for ensuring that Ardian’s activities are In addition, we often advise portfolio guardians of our corporate governance, performed in the best interests of our clients companies on the international and ensuring that our executives have clear, while creating a safe regulatory investing domestic laws and regulations that affect robust rules to guide their decision-making. environment. By fulfilling this role, our them, including international sanctions and They negotiate our relationship with every Compliance professionals act not only rules to counter corruption and money LP, structuring each fund and the rules as the guardians of our investors‘ interests laundering. that govern it to deliver the fairest solution but also as protectors of our company’s for Ardian and our LPs. During the life MICHAEL FERRAGAMO most valuable asset: its reputation. VIRGINIE BARBIER HUGO LAUQUE AUDREY VILLATTE of every fund, they support our in-house Head of Global teams to ensure that Ardian is always Compliance Co-Heads of Ardian’s Legal Team In 2019, we launched several major in constant contact with our clients projects. These included improving our “We work on every topic with and in a position to deliver on the existing anti-corruption framework and every team in the company. commitments we have made to them. designing a new digitalized compliance Our role is to help the business environment, notably to capture all ethics find solutions, in a regulated “There are two major pillars of what we do. The key to success for our legal team ADVOCATING RESPONSIBLE FINANCE ADVOCATING declarations required from employees, environment, with the support of First, we provide protection and security is transparency. Ardian has long-term such as authorizations prior to personal our Executive Committee. relationships with its investors that transactions in listed securities. We also Compliance protects the interests for the company and its LPs. Then, we help depend on a high degree of mutual trust. defined new deal flow allocation rules of our investors and our assets all teams deliver what we have promised The legal team takes great care to ensure using a macro approach for Direct funds. and, in turn, Ardian’s reputation. to our investors.” that we reinforce this trust by being Reputation is the key to everything transparent and constructive with every – without it, we have no business.” client. By making sure the structures we put in place are not only market-standard “It’s important that we all see our but also completely in line with all legal ethical and professional obligations not requirements, we guarantee to our investors that everything we do meets as constraints, but as vital factors in their expectations. protecting Ardian and our clients.” Over the past year, the legal team has been at the front line during an intense period of fundraising activity for Ardian, as well as negotiating a landmark agreement with a major Wall Street JEAN-BAPTISTE DECLERCQ bank to establish an important US feeder Senior Compliance Officer fund aimed at giving our funds access to a potential new market.

26 27 Technology: our digital

transformation gathers • A new digital tool that will take over more than 95% of the processes within the Fund momentum of Funds team that are currently carried out using platforms like Microsoft Excel. Ardian invests continuously to develop Beyond these very large projects, IT tools that will deliver major advances our IT team is also working on around in security and efficiency. 25 other projects with virtually every part of the company. The aim in each case is to achieve operational excellence by automating as many of our internal processes as possible. This will hugely reduce the number of manual operations we carry out, We devote significant resources and To ensure we can deliver the IT improve our ability to manage risk and investment to technology development. functionality our teams require, during greatly increase our teams’ productivity. Our IT team has more than 50 permanent 2019 we reorganized the IT department Strengthening our internal operations staff – nearly 10% of Ardian’s total and placed it under the leadership, at in this way is an essential step to enable headcount – supported by up to Executive Committee level, of Mathias the next phase of Ardian’s growth. 90 contractors and external consulting Burghardt, Head of Ardian Infrastructure. firms. They are working on multiple The central aim of this reorganization projects that touch every part of our was to create the closest possible organization and are on course to deliver collaboration between the business teams major new tools during 2020 that will who will use our new IT tools and the “We are working on a dedicated MATHIAS BURGHARDT transform our internal processes and the IT professionals who will build them. platform for the Fund of Funds Head of Ardian way we engage with our investors. We have created a group of Business investment teams. All their Infrastructure Relationship Managers within the investment monitoring and pricing and in charge of technological Alongside our investment in digital IT team, led by Vincent Joly, Head were previously done via development, innovation, we are always focused on of IT, who will form the bridge between spreadsheets. This project aims Member of the identifying and managing cybersecurity IT and the wider organization. to automate hundreds of Excel ADVOCATING RESPONSIBLE FINANCE ADVOCATING Executive Committee risks. The security of our investors spreadsheets and streamline a huge is a key concern in every project, The major projects we will deliver number of repetitive manual tasks. and we use world-leading external during 2020 include: It will standardize our processes security experts to complement our two • Our online investor relations portal, and ensure uniformity in the data in-house cybersecurity specialists. which will deliver a customized dashboard – as well as allow investment teams for each LP. This will show all their to focus on activities that create investments with Ardian in a single view, more value.” as well as individual data and reports and “We must use digital technology to a digital subscription process for new fund become more efficient, manage risk investments. This will also speed up our onboarding of new clients significantly. more effectively and deliver an even better service to our investors. • A cash flow projection tool that will This is critical for Ardian’s future.” replace the manual projections our investment teams currently produce for LPs. This will allow Ardian and our investors to gain a clearer view of future cash flows and enable LPs to plan CÉLESTIN VALLOIS their reinvestments into new funds more IT Project Manager easily. This tool will be extended to our Mandates activity in early 2021.

28 29 Sustainability

We believe finance must be a force for good in society. We are therefore committed to understanding and improving the impacts of our activities, and to playing our part in addressing the social and environmental challenges that confront us all. SUSTAINABILITY

32. 38. The sustainability challenge The Ardian Foundation: demands constant innovation increased resources to fund our programs and respond 34. to COVID-19 A unique view of the fund of funds industry’s ESG evolution

36. Building tools to address climate change The sustainability CASE STUDY: GANTNER

challenge demands constant innovation We have developed our approach We have also joined the Economic Investment impact Dividends for Gender Equality (EDGE) We have been working for some time 126 program, which is the leading certification to move beyond simple monitoring of to sustainability and responsible companies in investment year by year so that today system globally to promote gender Environmental, Social and Governance our Buyout, equality in career opportunities. indicators and develop a tool to measure Expansion, Infrastructure and improve the impact of Ardian’s it feeds into every area of our work. and Real Estate In addition we have signed the diversity portfolio companies on our communities portfolios charter of the French private equity and stakeholders. During 2019, have received a tailored association, France Invest. In house, we developed a new measurement sustainability we will further track diversity KPIs in our methodology drawing on the UN roadmap since Ardian Expansion acquired Gantner portfolio companies and our Fund of Funds Sustainable Development Goals and the 2009 in 2016. The Austrian technology portfolio and will work closely with our international Impact Management Project. company has 370 employees and colleagues in HR to promote greater Our new framework analyzes the entire produces contactless systems to gender diversity, building on the mentoring value chain of each company, rather control access to premises, enable We advanced our work on sustainability and networking activities of Ardian’s than simply its internal processes and 68% payments and record staff time. during 2019, making fresh commitments Women’s Club. operations, and provides a range to fulfil our social responsibilities as a of steps to improve its impact. of the companies We have helped Gantner improve in our Buyout, Climate change company and improving our monitoring Expansion and its sustainability and the impact it of the sustainability and impact of our Our major initiative last year was a project Profit sharing Infrastructure has through its supply chain. investments. to measure the carbon footprint of our Since we produced our first profit sharing portfolios that are part of infrastructure portfolio and model its charter in 2008, we have distributed the Ardian Key projects included: Diversity & equal opportunities projected growth against the performance €57 million of capital gains on exit Sustainability • Responsible purchasing. A new

SUSTAINABILITY Ardian is helping to address critical issues needed to restrict the global temperature to more than 23,200 employees of Program have put policy targeted health and safety, in place employee in our industry by joining 13 other major increase to 2 degrees centigrade. 31 portfolio companies. Our general quality and environmental criteria. CANDICE BRENET profit-sharing North American and European institutions Together with the CEOs of our infrastructure approach is to distribute a uniform sum schemes during As a result, 22 of the company’s top Head of Sustainability in the Investor Leadership Network (ILN). companies, we set a target of reducing representing between one and four our ownership 25 suppliers are now ISO 9001 The ILN was formed following Canada’s their companies’ direct emissions by months’ salary to every employee. In certified for quality management 2018 presidency of the G7 to address 20% by 2030. some companies, this bonus can represent and 19 are ISO 14001 certified issues of sustainability and long-term up to six months’ salary for certain for environmental management. growth. We are contributing to its diversity We also analyzed the carbon footprint employees. 170 GPS • Eco-design. In 2018, Gantner work stream, focusing for the moment of the Expansion portfolio, identifying redesigned one of its main products responded to on gender balance. We monitor gender material issues for each company and Profit sharing on exit has become an our seventh to use 66% less plastic, 54% less diversity within Ardian, including assessing the physical and transition risks increasingly common practice across Fund of Funds power and remove the need for representation of women in leadership that climate change poses for them. our portfolio companies – some 30% portfolio an integrated battery. monitoring and risk-taking positions, and collaborate of the total amount we have shared survey, up 10% • Operational improvements. in developing best practices to promote Ardian continues to play an active role to date was distributed during 2019. vs. 2018 The company introduced an diversity internally and within portfolio at the industry level, and hosted the ISO 14001:2015- certified companies. “Get up to speed on climate change” environmental management system workshop during the PRI in Person event and appointed a staff member in September 2019. Candice Brenet, to focus on environmental issues. Head of Sustainability, joined the • Energy efficiency. Gantner moved “Our new impact measurement Commission for Climate and Sustainable into new energy-efficient premises framework shows our commitment to Finance, hosted by the Autorité des Marchés that use groundwater for heating Financiers (AMF), France’s regulatory and cooling and generate clean stay at the forefront of the industry’s body. This brings together expert members electricity through solar panels. thinking on sustainability.” to help create regulatory policy that is ambitious and relevant for businesses.

32 33 A unique view of Focus the fund of funds industry’s Latest campaign shows ESG ratings ESG evolution climbing Ardian has been monitoring ESG performance among the managers in our Fund of Funds portfolio Responsible investment-related objectives for almost 10 years. The data from our years For the first time, a majority of GPs have set formal responsible investment-related of research gives us an unparalleled overview objectives for the coming year. of the industry’s approach to sustainability. Our most recent GP survey showed that ESG practices are continuing to improve No Yes across the portfolio, with 87% of GPs 46% 54% 76% Some 170 GPs took part in our 2019 now reporting that they have a formal of GPs have survey, representing 88.5% of the net reponsible investment policy. This figure either a full-time asset value of our Fund of Funds portfolio has been rising steadily since we launched or a part-time across primary, secondary and mandate our survey – in 2014 it stood at just 50%. CSR Officer Since 2011, we have been conducting engagements. As well as giving us Similarly, 46% of those who completed our regular surveys of the GPs in our Fund detailed knowledge of our industry’s ESG GP survey are signatories of at least one of Funds portfolio to understand how performance, our relationships with such responsible investment-related initiative. they handle Environmental, Social and a large group of GPs also makes us a Within this group, the UN PRI is by far 87% Governance (ESG) issues in their investment trusted source of advice on best practices the most frequent choice: 91% say they The private equity industry’s growing of GPs report activities and within their company. across the industry. Once we have are signatories, up from 83% in 2018. maturity in terms of responsible investment that they have a formal responsible analyzed each set of survey results, is evidenced by GPs’ adoption of formal investment policy As one of the world’s largest investors we send an individual scorecard to every responsible investment-related objectives.

SUSTAINABILITY in Fund of Funds, we have built up GP, providing tailored feedback. We also Current Fund of Funds Some 54% of GPs that took part in our an extensive body of survey data over offer every GP follow-up meetings and calls portfolio breakdown of ESG 2019 survey had done so, up from 41% OLIVIER DECANNIÈRE almost ten years. This, coupled with if they wish to discuss their results further. scores by Net Asset Value in 2018. Most respondents set at least Head of Ardian UK and 48% Ardian’s own sustainability initiatives, three objectives, indicating a commitment Member of the Executive of GPs with has given us a unique insight into how Our 2019 findings demonstrate clearly to implement a comprehensive responsible Committee outstanding the private equity industry’s approach that incorporating ESG factors into A+ and A: investment policy. financial performance to ESG is evolving. the investment process is now standard 59% of NAV D and E: have best-in-class practice for the majority of private equity vs. 11% in 2016 Most responsible investment objectives ESG results 7% of NAV managers, and for the first time we found focus on the investment process, (A+ or A score) that a majority of GPs had set responsible specifically ESG monitoring of portfolio B: 13% “As one of the world’s investment-related goals for the year ahead. of NAV companies and incorporating ESG leading fund of funds investors, considerations into GPs’ due diligence However, we also observed that the and investment decision-making. we see it as our role to engage and proportion of female employees was static, share best practices with GPs.” year after year, although it is increasing C: 20% Diversity of NAV gradually at the executive level. Women hold at least 30% of executive Diversity is a central part of Ardian’s positions at just one GP out of 10. sustainability strategy, and in future surveys But GPs are addressing this issue – around we will examine the industry’s developing half of the participants (49%) have a gender balance, particularly within diversity policy or intend to have one by investment teams. We see a close correlation between GPs the end of the year with North American who achieve an A+ or A rating for their GPs leading the way. The most popular ESG performance as investors, and those type of program, implemented by 85% who also achieve the same rating for their of respondents, aims to promote diversity commitment to ESG at a corporate level. in the recruitment process.

34 35 Building tools to address climate change Reducing carbon emissions is central to our sustainability agenda – but it will also protect and enhance Although originally developed for use with our Infrastructure team’s airport the long-term value of our investments. investments, we intend to apply tools such as Air Carbon across all our investment Addressing our climate impact is part activities. Our aim is to multiply the of our social responsibility as a business. impact of innovations like this as far as But it also illustrates our pragmatic, possible. Using data analysis tools such practical approach to confronting the as Air Carbon, we intend to transform major threat facing the world today. the way we analyze companies across We firmly believe that tomorrow’s winners all sectors and help them accelerate their will be the companies that take the lead transition to less carbon-intensive ways in reducing carbon emissions and find of operating. ways to grow that are much less carbon The global drive to address the threats intensive. Those that lag behind will struggle posed by climate change is gaining to attract investment and will see their momentum. As an investor with interests in value impaired. scores of companies, Ardian has a social “I developed the original Air obligation to play a leading role in these It is therefore critical to develop ways Carbon project with two other efforts, both within our own business and to measure companies’ direct and students and I’m now rolling it by helping our portfolio companies indirect carbon emissions and gain a out to the airports in our portfolio transition to lower carbon-intensity ways comprehensive view of their climate and improving it to include very

SUSTAINABILITY of operating. impact. Digitalization and data feeds granular data on road travel are the key ingredients. Using these tools, as well as aircraft movements. MATHIAS BURGHARDT We are collaborating on research into we can model emissions accurately We’re taking existing data and Head of Ardian how we can reduce the carbon intensity in real time, unlocking the essential automating the process of turning Infrastructure of our companies, notably via the latest data that will inform constructive it into concrete metrics. This lets and in charge phase of our Augmented Infrastructure dialogue between all stakeholders us quantify the challenges of of technological development, project, “Digital For Climate”. We are also to find sustainable solutions. addressing carbon emissions Member of the developing tools internally to measure and enable our stakeholders Executive Committee carbon emissions from our investee Air Carbon to make data-driven and businesses and help us develop strategies Air Carbon is a data-analysis tool that impactful decisions.” to reduce them. provides real-time estimates of airports’ carbon emissions from all sources – ranging from aircraft movements to ground operations. It will soon also “Using data analysis tools such as include the infrastructure itself as well as Air Carbon, we intend to transform passenger travel to and from the airport. Ardian Infrastructure designed the tool the way we analyze the companies in collaboration with university students across all sectors and help them from HEC, Ecole Polytechnique and accelerate their transition to less Ecole 42 to help airport management teams quantify the impact of their existing LOUISE BADARANI carbon-intensive ways of operating.” activities and proposed investments, Data Scientist & Analyst and collaborate more effectively with Infrastructure other stakeholders, such as public transport authorities, to reduce emissions.

36 37 The Ardian Foundation: Alongside these new partnerships, we continued the Foundation’s increased resources to fund our international roll-out, working through local representatives across Ardian’s offices. The Foundation is now well programs and respond to COVID-19 THE FOUNDATION TURNS 10 established in the UK, US and China The Foundation has provided strong support and is generating interest from staff in other offices, including Italy and Chile. More than to its partners to help withstand the impact We also launched the third edition of the pandemic, and has expanded of our flagship entrepreneurs’ program, 160,000 “3,2,1”, which provides grants and beneficiaries its social mobility programs for children coaching for 11 entrepreneurs from and young people. disadvantaged backgrounds in France who want to set up micro-businesses.

We believe our expertise in helping Around a quarter of Ardian’s employees ambitious companies to grow can also got involved in the Foundation’s work €6M bring value to the philanthropic sector. during 2019, and 150 of our Paris staff donated since As part of this initiative, we have created attended our first Citizens’ Day event, 2010 a dedicated budget to help these which showcased several of our partner Ardian’s decision to pass a share of its organizations with IT and digital challenges. organizations. We are working carried interest to the Foundation clearly to increase employee engagement signals the strength of the company’s Over the past year, the Foundation has further and looking at ways to support for initiatives to improve social worked with two new partner charities, involve our portfolio companies 25% mobility. This move will boost the Magic Breakfast and Chemins d’Avenirs, in the Foundation’s activities. Ardian employees Foundation’s budget over the coming among others. involved in years and enable the organization to Foundation In 2020, the Ardian Foundation expand its activities further. Magic Breakfast is a British charity projects celebrates its 10th anniversary. SUSTAINABILITY that provides free, healthy breakfasts JOINING THE FIGHT AGAINST Over the past decade, the The Foundation now supports 39 partner to children from disadvantaged COVID-19 Foundation has provided YANN BAK charities globally, all of which focus backgrounds in schools across the UK. a vehicle for our company’s President of the on providing educational opportunities In 2019, 1st Grade pupils who received In April 2020, the Ardian engagement in social causes and Ardian Foundation and work skills to disadvantaged children free breakfasts boosted their reading, Foundation created a dedicated Active in an opportunity for our employees and Managing and young people. For the next stage writing and math skills by an average fund of €180,000, representing to unite around a common cause: Director at of its development, we plan to focus of two months’ progress per year, 10% of its annual budget, to help 7 promoting social mobility and Ardian Buyout more of our support on around a dozen compared to children in schools with the organizations we support and countries integration for children and adults flagship projects, where as well as no such breakfast provision. their beneficiaries withstand the from disadvantaged backgrounds providing funding we will offer practical impact of the COVID-19 pandemic. through education and work skills. help to strengthen the organizations Chemins d’Avenirs offers sponsorship themselves and increase their and mentoring to secondary school pupils In addition, Ardian, alongside its The Foundation has channeled effectiveness. and students in rural areas and small employees, has provided further 63 financial support to more than towns in France, regardless of social funds to support hospital care, 60 organizations focused on social partnerships background or academic ability, to help health workers and medical with charities mobility and receives active support them achieve their potential in whatever research, while our international since 2010 from one in four of our 664 staff, “Expanding our budget field they aim to pursue. offices have helped to fund local many of whom volunteer as mentors. has allowed us to make a very initiatives. These donations were In recent years, it has significantly augmented by our Chinese partners, expanded its activities outside material contribution to our who sent protective equipment for France and now has thriving local beneficiaries during the pandemic, as use in hospitals. We offer them centers of activity in China, well as doing more to strengthen our wholehearted thanks for their Germany, Italy, the UK and the friendship and solidarity. US, with more to follow. our partner charities.”

38 39 Trusting talented people today and tomorrow

Talent is the past, present and future of Ardian: to achieve the standards we aspire to, we must attract and develop outstanding people, wherever they come from. The better we become at this, the brighter our future will be. TRUSTING TALENTED PEOPLE TODAY ANDTRUSTING TOMORROW PEOPLE TALENTED TODAY

42. 46. Diversity will strengthen We offer talented people our collective intelligence many routes to success

44. Millennial Executive Committee: Ardian’s younger generation makes its mark Diversity will strengthen THE WELL-BEING our collective intelligence OF ARDIAN EMPLOYEES To achieve sustainable success, Ardian needs to attract talented people from a wider range of backgrounds, while ensuring that they work in an environment where everyone feels fully included. 98%

of Ardian employees say they Collective intelligence Diversity and inclusion initiatives are proud to work for Ardian The rewards for attracting a more diverse We are increasing our efforts to improve 664 pool of talent, and ensuring everyone feels gender equality and the representation employees Ardian’s strong performance and reputation valued and included, are large. Greater of women in senior roles, as well as allows us to attract talented people to diversity will allow us to draw on a wider increasing representation of disabled all parts of our company. During 2019, spectrum of perspectives and experiences, employees. Some important progress we recruited 106 new employees, strengthening the collective intelligence of has already been made. There is full increasing our headcount to 664. These our company and increasing our ability gender pay equality at Ardian, and 106 new colleagues are making us stronger to outperform. Creating a more inclusive 31% of senior management roles are new employees in 2019 in every department but, beyond that, culture will allow us to retain and nurture now filled by women. Within our 93% we believe that to sustain our performance, talented employees from all walks of life. investment teams, traditionally the most we need to hire talent from more diverse male-dominated area of the industry, backgrounds that better reflect the world We already run several programs to a quarter of new joiners over the past JÉRÉMIE DELECOURT we operate in. Equally, to ensure that develop and retain our staff. These include two years have been women. 35.6 Member of the everyone who joins Ardian can reach their of them would recommend Ardian University, which helps all new average age Executive Committee full potential, no matter what background employees to better understand our culture EDGE certification of an Ardian Ardian as an employer supervising Human they come from, our culture must be as and to develop their technical skills, and In April 2020, we have obtained the first employee Resources inclusive as possible. a mentoring program that links young level of certification under the Economic TRUSTING TALENTED PEOPLE TODAY ANDTRUSTING TOMORROW PEOPLE TALENTED TODAY employees with more experienced and Dividends for Gender Equality (EDGE) senior colleagues. Our Millennial Executive “EDGE assess”. Our next priority is to Committee represents our younger staff and graduate to higher levels over the next “Our aim is to find talented gives them a formal role in shaping the few years. The program assesses four people from a diverse pool and future of the company, while Ardian Startup areas: gender balance, equal pay, Studio, now in its second year, encourages equitable career flows and inclusive welcome them into our company. staff to put forward ideas that will benefit culture. We launched the EDGE certification 90% We want to do a lot more to the company and aid their personal process in January 2020 with an all-staff promote diversity and inclusion development. questionnaire and the collection of HR metrics and policies. over the next few years.” However, there is more to do and we see the steps we took in 2019 as the start say they are happy of a multi-year process to embed diversity at work and inclusion more deeply in our culture.

Source: Ardian in-house survey conducted by Harris Interactive, December 2019

42 43 Millennial Executive Committee: Ardian’s younger generation makes its mark

The Millennial Executive Committee has developed a series of projects to strengthen Since it was set up, the Millennial management skills across the company Executive Committee has worked and reinforce Ardian’s culture and cohesion. on around 10 projects, identifying key topics and working closely with different departments to develop and implement The Millennial Executive Committee brings its solutions. Previous projects have together a group of employees under included improving the welcome pack the age of 35 across the company and integration seminar for new joiners to develop ideas in collaboration with and working with the Ardian Foundation Ardian‘s departments. Their purpose to devolve more control over projects is to support the company’s long-term to local teams around the world. success by focusing on attracting and retaining talent, increasing cohesion The major initiatives among our staff, strengthening Ardian’s the committee worked reputation and improving its impact from on in 2019 included: a social and environmental point of view. Originally formed in 2017 with Ardian Feedback Loop: A new 12 members, the Millennial Executive 360-degree review system developed Committee is progressively handing with Ardian’s HR department. Feedback over its responsibilities to a new group Loop will allow the employees to receive of young employees. feedback from peers, colleagues and their managers. This initiative, which the committee hopes will help to develop leadership skills in new managers, “Ardian’s decision to create is a major change for the company. The new members of the Millennial Executive Committee the Millennial Executive Committee It was test-launched to a limited group TRUSTING TALENTED PEOPLE TODAY ANDTRUSTING TOMORROW PEOPLE TALENTED TODAY was a great example of of employees with plans for a wider FROM LEFT TO RIGHT roll-out in 2020. long-term thinking. It encourages ZACHARY LEVINE ALVARO SANZ APOORVA JOSHI YANNIC METZGER ACT 20: Starting in 2020, the committee collaboration and helps the Fund of Funds – CARRASQUEÑO Fund of Funds – London Expansion – Frankfurt and the HR team are launching a new company keep pace with a world San Francisco Infrastructure – Madrid training event for people promoted each MAXIME DURIEUX (missing) that is constantly changing.” January to management roles in support PAULINE THOMSON NADINE ZARIFFA Legal – London ADA WEN GIACOMO FORTI functions or to senior investment manager Infrastructure – Paris Buyout – Milan Fund of Funds – Beijing JÉRÔME JOUYET President of the first Millennial positions. Ardian Conference and Training ANAÏS ROBIN MATTHIEU LABOUCHE Investor Relations – Paris Executive Committee 2020 will bring together around Buyout – Paris Co-Investment – Paris 40 people in 2020 to encourage JESSICA DU VIVIER innovative thinking and provide training DAVID MCDONOUGH OMAR FJER Human Resources – Paris Its membership will expand to 15 during on the key topics of artificial intelligence Fund Finance Fund of Funds – Real Estate – Paris 2020 to reflect Ardian’s increasing and emotional intelligence. The conference London ROMAIN CHIUDINI headcount, thus increasing participation will also help people in different Growth – Paris from different departments and countries. parts of the company to develop their The group meets twice a year in person personal network and increase cohesion and by video conference every six weeks. within Ardian.

44 45 “I joined Ardian in September 2015 as an intern in IOANNIS AMOUTZAS We offer talented Senior Finance Officer the Fund Finance team for Fund of Funds in London, Fund of Funds after graduating from Athens University of Economics London people many routes and the London School of Economics. Ardian gave At Ardian since 2015 to success me the opportunity to develop my skills and progress within the team and strongly supported my personal Many of our staff join the company and career development by enabling me to qualify as post-graduate interns, embarking as a chartered accountant. Also, I was able to take on a journey that can open new part in Ardian’s rotation program and spend time working with my colleagues in the New York office. horizons for them – professionally That was an incredible opportunity, which helped and personally. me get to know different teams and understand the multiple challenges Ardian faces globally.”

“I started my journey at Ardian in 2005. Like many MARIE-VICTOIRE ROZÉ Managing Director

TRUSTING TALENTED PEOPLE TODAY ANDTRUSTING TOMORROW PEOPLE TALENTED TODAY of us, I joined the company as an intern within the Fund of Funds Fund of Funds team in Paris, where I spent the first Paris – London At Ardian since 2005 four years of my career. In 2009, I was offered the opportunity to move to the New York office, where I worked with my colleagues in the US Fund of Funds team for more than two years. This was a very exciting time because Ardian’s profile in the US secondary market – and globally – was changing dramatically. In 2011, I returned to Europe to work on investment opportunities in primary and secondary fund of funds. In my 15 years with Ardian, I have had many opportunities to grow and overcome new challenges. It’s been an amazing journey so far.”

46 47 ERIN ODISIO JONES “I joined Ardian four years ago as the first native Investor Relations Director San Francisco Californian (my family is from San Francisco) and At Ardian since 2015 was excited about the opportunity to deepen Ardian’s Western US and Canadian relationships. The best part about my role is the opportunity to share the Ardian story with smart and sophisticated investors across North America. Traveling to cities throughout my region with colleagues from around the world and all our investment teams keeps my job interesting and fresh. Everyone is always enthusiastic about coming out here – especially if it means visiting California in January! It’s important in our business to build deep and meaningful relationships, so it was essential to me that I join a firm that really sees the client as a partner – which is certainly the case at Ardian.”

“I am an Ardian “baby”. Like many others, I started ARTHUR DE SALINS Director as a post-graduate intern and nine years later Expansion I am a Director in the Expansion team. As far as Paris At Ardian since 2011 TRUSTING TALENTED PEOPLE TODAY ANDTRUSTING TOMORROW PEOPLE TALENTED TODAY I am concerned, it is part of Ardian’s DNA to trust young people and help them grow professionally and personally. It totally reflects Ardian’s values: this organization is looking for excellence and is very demanding, but it knows how rewarding it is to be given the responsibility to make decisions. This creates long-lasting loyalty. Not only am I involved in the Expansion team, which is fast- moving and very exciting, but I also volunteer with the Ardian Foundation as a mentor for Sport dans la Ville, one of its partner charities. This is another aspect of life at Ardian that I enjoy: it’s an investment company that believes finance must have a sustainable purpose.”

48 49 O u r investment activities

The foundation of our approach is to create long-term, trusting partnerships with entrepreneurs, managers and investors. We commit our resources and expertise to support them on their journey and together achieve our common goal: sustainable value. OUR INVESTMENT ACTIVITIES

52. 76. We span the private Ardian North investment market America Fund

54. 80. Fund of Funds Co-Investment

58. 86. Buyout Infrastructure

64. 92. Expansion Private Debt

70. 98. Growth Real Estate We span the private investment market

Ardian specializes in five asset classes. Our largest activity is Fund of Funds, where we invest globally in secondary transactions as well as make primary commitments through our Mandates operation. Our Direct Funds and Infrastructure activities have FUND OF FUNDS US$56Bn strong positions in Continental Europe. We are progressively extending both activities to North Primary Early Secondary Secondary America and, in Infrastructure’s case, South America as well. Private Debt specializes in providing non-bank funding for European LBO deals. Finally, our newest activity – Real Estate – acquires and refurbishes office properties in Europe’s most dynamic cities.

DIRECT FUNDS US$20Bn

Buyout Expansion Growth Ardian North America Fund Co-Investment OUR INVESTMENT ACTIVITIES

INFRASTRUCTURE US$15Bn

PRIVATE DEBT US$7Bn

REAL ESTATE US$2Bn

52 53 “Deal timescales are Fund of Funds getting shorter, which Unrivaled capacity to execute Ardian dominates the secondary fund plays directly to our of funds market globally and is a major the world’s largest deals strengths: only buyers player in primary commitments, where it invests with leading GPs, mainly through with outstanding its fast-growing Mandates business.

data and IT systems During 2019, the team reinforced its position at the top end of the Secondary can move this fast.” market by successfully executing several of the largest and most complex transactions attempted to date. This was epitomized by the closing of the largest ever secondary transaction in December 2019, a landmark deal in which Ardian acquired a $5 billion portfolio from a financial institution. Overall, Ardian deployed more than $84Bn $10 billion in secondary transactions value of in 2019, with the team having largely secondary deals committed Secondary Fund VII. On the in 2019 primary side, Ardian continued to use its strong network to provide its investors access to top-tier funds worldwide.

23 As private equity becomes an increasingly secondary liquid asset class, more institutional sellers transactions are looking to the secondary market and 62 primary to implement strategic shifts or respond commitments to regulatory changes. Ardian occupies VINCENT GOMBAULT in 2019 OUR INVESTMENT ACTIVITIES a unique position as a provider of rapid, Head of Ardian dependable solutions to these sellers, Fund of Funds and thanks to its market-leading data and Ardian Private Debt, intelligence, established relationships and Member of the + 80 with GPs globally and the scale of its Executive Committee investment financial resources. professionals

The high level of primary fundraising from 2016-19 indicates that Secondary turnover is set to rise significantly, with annual deals likely to top $100 billion within the next two years. Even at that level, turnover would represent a tiny percentage of the overall asset class and leave significant room for growth.

The team responded to the COVID-19 pandemic by carrying out a detailed analysis of all portfolio holdings. It is monitoring the situation but does not currently anticipate any cash constraints or major covenant breaches in the secondary portfolio.

54 55 SELECTED PRIMARY COMMITMENTS SELECTED SECONDARY TRANSACTIONS

$2.2 Bn $10.8 Bn TOTAL AMOUNT DEPLOYED IN PRIMARY TOTAL AMOUNT DEPLOYED IN SECONDARY COMMITMENTS IN 2019 IN 62 FUNDS TRANSACTIONS IN 2019 IN 23 TRANSACTIONS

Global funds North America funds Europe funds Asia funds Secondary Early Secondary Infrastructure Secondary

$5Bn $54M $200M

Blackstone VIII JLL VIII IK IX CVC Asia V Asian Bank Family Office North American Pension Fund 08/2019 06/2019 08/2019 12/2019 87 LP interests 5 LP interests & 7 co-investments 04/2019 4 LP interests 12/2019 09/2019 OUR INVESTMENT ACTIVITIES Apax X Nautic IX Pan European J-STAR No. 4 07/2019 03/2019 Infrastructure III 08/2019 08/2019 $802M $66M $722M Advent GPE IX Genstar IX Permira VII LYFE III North American North American Asian Insurance 07/2019 02/2019 06/2019 09/2019 Pension Fund Insurance Company Company

11 LP interests 2 LP interests 3 LP interests 03/2019 03/2019 & 1 co-investment Global Court Square IV Cinven VII PEP VI 04/2019 Infrastructure IV 01/2019 04/2019 07/2019 07/2019

Providence VIII Oak Hill V Carlyle Europe Warburg Pincus $786M $40M $77M 03/2019 01/2019 Technology IV China II European Financial European Public European 01/2019 06/2019 Institution Financial Institution Corporate

20 LP interests 2 LP interests 10 LP interests 03/2019 03/2019 03/2019

56 57 “We continue to Buyout reinforce our team Transforming ambitious European Ardian Buyout reinforced its reputation for and promote talented executing transformational growth strategies companies into global players young professionals. during 2019 with the creation of Europe’s biggest healthcare software company. Today half our At a total value of close to €2 billion, the signing of Agfa-Gevaert’s healthcare software Managing Directors business to combine it with Dedalus was one of the biggest European transactions in 2019. are under 40, and the It also provides a powerful illustration of the team's investment strategy: to concentrate proportion in that age on selected sectors with long-term growth bracket will increase.” potential and build leading niche players with a global reach.

In 2019, the Buyout team completed five acquisitions, along with ten add-on deals €300M for existing portfolio companies and two exits. to The completed transactions include a majority of proprietary deals, with a broad geographical €2Bn spread, all delivering strong organic growth. valuation Ardian Buyout’s use of leverage (4.8x Ebitda of targeted on average) remains cautious and below the companies market average. On top of those acquisitions, the team signed in December 2019 two additional deals with Audiotonix and Cérélia.

10 Following Ardian Buyout’s expansion into build-ups North America, the four-strong New York- PHILIPPE POLETTI executed in OUR INVESTMENT ACTIVITIES based team is now delivering significant 2019 Head of Ardian value by working on US acquisitions for Buyout and Member portfolio companies. Their presence is also of the Executive strengthening the ability to develop value Committee creation plans that depend significantly 49 on US growth. This proved crucial in the deal investment to acquire Cérélia, an innovative French professionals bakery products company which has major ambitions to expand in North America.

In addition, since the beginning of 2020, the team has agreed the sale of DRT to Firmenich, which will result in additional returns to its LPs. The Buyout team is now composed of 49 people with 13 new hires in 2019.

To mitigate the effects of the COVID-19 pandemic, the team took early action to support its portfolio companies, helping them to safeguard their employees, cut costs, reinforce their cash position and access state support programs wherever appropriate.

58 59 In conversation with Dedalus

Transformational deal G.M.: This is a very strategic company in terms of the health management of for Europe. Healthcare represents populations, but to really think about creates European leader 11%-12% of Europe’s GDP and the how to cure people and to learn how in Healthcare IT challenge of creating a sustainable to do it better using data. That’s very system is huge because the population difficult today because of the low level Healthcare software is ageing and costs are growing of technology and awareness of what IT dramatically. Dedalus plays a really can offer in the healthcare environment, Yann Chareton: It was always Giorgio’s important and unique role in the health and sometimes because of a lack of ambition to make Dedalus the number system because our products manage funding. If we could use even a small No. 1

one healthcare IT provider in Europe. both clinical activities and the way the portion of the data we will produce, position in Europe When we invested in 2017, the company whole service is organized. I believe it would change everything – the with leadership had just completed a transformational Europe is very late in recognizing development of drugs, monitoring position in Germany, Italy and France deal that made it the clear leader in IT and digitalization as fundamental of efficiency, time to market, etc. Italy, and over the next three years in optimizing the quality of clinical together we consolidated that acquisition, care as well as the sustainability of G.M.: Our goal is to capture and reinforced the group structure, built up the entire system. contextualize all kinds of clinical data 30 the business in France and invested in in a standardized way so that we countries an innovative new product suite. In three Y.C.: Our ultimate ambition is that Dedalus can transform the data into clinical years, Dedalus grew from €80 million will be the organization that drives the information and knowledge that can of revenues to about €210 million, but digitalization of the Continental European be shared and understood by everyone. the opportunity to acquire Agfa-Gevaert’s health system. If it’s possible to share high-quality 3,500 healthcare software business takes the clinical information, we will be able business to another level. G.M.: The clinical profession has gone to apply best practices, which means employees through an amazing evolution over the higher quality for the patient, reduced Giorgio Moretti: With Agfa-Gevaert, past 50 years, but there really hasn’t clinical risk for the professionals and

OUR INVESTMENT ACTIVITIES we are now the leader in Italy, Germany been any major transformation in the way a more efficient system with better and France with nearly €500 million of clinicians work as a result of IT. A lot control over costs. annual revenues and 3,500 employees. of processes have been automated but This makes us by far the biggest player nobody has been able to rethink entire Y.C.: We have always liked Giorgio’s YANN CHARETON GIORGIO MORETTI in European healthcare IT and puts us in clinical processes using the kind of IT long-term vision for Dedalus, but I have Managing Director Founder and at Ardian Buyout Chairman of Dedalus a unique position – the only international tools we now have. Thanks to our market also been amazed by the capacity player in this market that is not American. position, the new product suite we have of this company to reinvent itself and We have created a European leader developed and our systemic vision of the manage its own transformation at a with the scale to invest efficiently in R&D. entire market, I think we can do it. very rapid pace. We think it’s in Ardian’s DNA to back successful entrepreneurs Y.C.: From Ardian’s perspective, we could Y.C.: We see huge opportunities in the in this kind of project. have exited in 2019 but when the Agfa longer term. Today the data produced opportunity came up, we decided to in hospitals and healthcare systems reinvest significantly and start again with are barely used for clinical solutions. the same kind of project – a transformational All these data are produced by clinical deal but this time at the European level. studies, which use very small samples. This is a very significant transaction Healthcare systems have not been for Dedalus – and for the European organized to produce data that can be software industry – but also for us. As a used by people undertaking clinical Continental European leader, it allowed research. The challenge for us in terms us to leverage our platform. We worked of innovation is to rethink the way a lot with our German colleagues to get IT is organized in order to make this data this deal done. available for clinical purposes. Not only

60 61 HIGHLIGHTS FROM 2019 BUYOUT PORTFOLIO

Investments Build-ups

Staci Agfa Healthcare IT Company Invest. date Activity Country 2019 estimated revenues (€M) Date of investment: Oct. 2019 (Dedalus) Sector: Logistics Date of build-up: Dec. 2019 10/2019 Specialty logistics solutions for companies France 340 Staci is a European leader in innovative B2B and B2B2C complex logistics Sector: Healthcare software 07/2 019 Specialty pharmaceutical company Switzerland 86 solutions for companies wishing to outsource all or part of their network Dedalus, a leading European or customer procurement operations. It has around 1,900 employees provider of healthcare software 05/2019 International education provider United Kingdom 276 and generated revenues of more than €340 million in 2019. primarily for use in hospitals, acquired part of Agfa-Gevaert’s 04/2019 Maintenance, repair and overhaul of commercial transport aircraft equipment France 311 healthcare software business. 03/2019 Specialist in innovative beverage dispensing solutions Italy 130 Study Group The enlarged group is the European leader in this sector, Date of investment: May 2019 dominating the Italian, French 12/2018 Laboratory of natural therapies Belgium 100 Sector: Education and German markets, and has 11/2018 Specialty pharmaceutical company Italy 176 Study Group is a leading provider of international education in the UK a presence in more than and Europe, Australia, New Zealand and North America. The group provides 30 countries. 04/2018 Producer of ingredients derived from plant-based chemistry France 570 preparatory courses for international students who wish to enter leading English-speaking universities. Each year, it supports around 30,000 students 02/2018 Frozen bread and bakery producer and distributor Spain 321 from 142 countries. 02/2018 Broker of smartphone and multimedia insurance France 365

09/2017 Engineering services provider France 1,085 Celli 04/2017 Fresh food specialty retail France 1,569 Date of investment: Mar. 2019 Sector: Beverage dispensing solutions 03/2017 Pharmaceutical CDMO France 319

Celli is an Italian company that designs and sells innovative beverage dispensing 01/2017 Lighting of residential and commercial spaces Germany 218 solutions for breweries and soft drinks companies. It also manufactures water dispensers. It has five manufacturing sites in Italy and the UK. 12/2016 Automobile subcontractors Germany –

10/2016 Biosafety, disinfection and hygiene solutions France 243

07/2 016 Medical communication software United Kingdom 132 OUR INVESTMENT ACTIVITIES

07/2 016 Healthcare software Italy 207

Choisy (Kersia) 06/2016 Inspection & quality control services France 436

Date of build-up: July 2019 04/2016 Audio equipment manufacturers Germany 171 Sector: Disinfection solutions 12/2015 Food ingredient mixes France 433 Kersia, the global leader in food safety, acquired Choisy 05/2015 Brokerage and consulting services France 430 Laboratories, a leading developer and manufacturer of chemical, 01/2014 Helicopter transport Belgium 165 biotechnological and biosecurity hygiene solutions, based in 10/2011 Industrial group specializing in photo-sensor technology France 143 Canada. This is Kersia’s fifth 07/2 010 Online travel agency France 533 strategic acquisition since Ardian

invested in the company in 03/2010 Teleshopping group Germany 810 Exit October 2016. 04/2008 Gaming arcades operator Germany 285 Schleich

Date of investment: July 2014 Date of exit: July 2019 Sector: Toy manufacturer

Schleich is one of the largest toy manufacturers in Germany and a leading international supplier of figurines and playsets. Since Ardian invested in Schleich in 2014, the company’s sales have risen from €106 million to €183 million and its employee headcount has grown from around 340 to 400.

62 63 “On average we E xpansion have known each Exit gains demonstrate management team powerful value creation for three years before we invest.

The understanding The Expansion team partners with talented and ambitious we build with managements to accelerate their international growth plans. them is the key In recent years, the team has enjoyed to our success.” consistent success by focusing on fast-growing businesses with high margins and helping them develop pragmatic, tailored strategies to create sustainable value. Despite €50M intense competition in 2019, the team to has continued to deploy Expansion Fund IV while maintaining its €300M disciplined investment strategy. valuation of targeted Ardian Expansion aims to build strong, companies trusted partnerships with entrepreneurs to pursue shared objectives, as demonstrated by its two investments during 2019, Saal Digital and 114 Nutripack. The team focused on a build-ups group of targets where its international FRANÇOIS JERPHAGNON completed and OUR INVESTMENT ACTIVITIES presence and hands-on buy-and-build 59 investments Head of Ardian Expansion since inception approach could create value and transform these companies, adding a further engine of growth to their rapid organic expansion. 26 The majority of Fund IV was invested investment professionals by the end of 2019 and is showing double-digit organic revenue growth across the portfolio. During 2019, the team took advantage of buoyant market conditions to exit three companies with significant value created, including the second exit from Fund IV, CCC.

Since the start of the COVID-19 pandemic, Ardian Expansion has worked closely with the management teams of its portfolio companies to address key challenges, including the safety of their employees and the liquidity position, as well as identifying opportunities arising from this crisis.

64 65 In conversation with CLS

The partnership that built do the due diligence. The advantage of C.V.: I think we really saw the quality a worldwide leader in having Ardian with us was that they would of our relationship with Ardian in 2016 challenge us in areas where CNES would and 2017. We had reached a point satellite data analytics not, like our financial assessment of the where we felt we needed to change companies we looked at. things internally and transform ourselves to meet growing competition and C.P.: We developed a very productive and accelerate innovation. Satellites are Christophe Vassal: We originally decided trusting relationship with Christophe and his global and so are our customers’ needs. Provider of location and data collection to work with Ardian back in 2013 team because they have always been very We needed to get closer to them and satellites because when we met them they had open-minded and willing to listen to our become more agile. We reorganized done their homework and understood suggestions. That allowed us to make a lot into five divisions addressing specific our business, which is to analyze satellite of progress together. We brought different markets and we invested in our offices data for geographic areas such as skills to the partnership focusing on areas to create a nicer environment for our 5

climate-change, biodiversity and fishery like financial reporting and acquisitions people. We couldn’t be sure our plan build-ups under management. As an institutional investor that are not so common in public-sector would work, and a lot of other investors Ardian investment and with its international presence, organizations. might have walked away, but Ardian Ardian was a very reassuring presence supported us. Although the changes for our main shareholder, the French C.V.: That’s true. Our processes were very we made had a short-term negative space agency CNES, as they had never basic before they invested, so they’ve impact on our figures, they ultimately 720 accepted a private equity company as helped us tremendously with our financial worked and the past two years have employees in a partner before. reporting and in strengthening our finance been very rewarding. 26 offices covering 198 countries team. Another major change we owe to Caroline Pihan: When we discovered them is our focus today on sustainability C.P.: When Christophe told us it was time CLS, we were actually looking at one and social responsibility. Even though to rethink the organization and take a more

OUR INVESTMENT ACTIVITIES of their suppliers, but we immediately our business is to protect the environment commercial approach, it was obviously €130M became very interested. They had long- and the earth’s resources, we had not a risk for us, but we trusted his judgment. serving employees with huge technological formalized our company policy on social Christophe and his team implemented the in turnover vs. €90 million expertise, and they were leaders in several and environmental responsibility. With the new structure very effectively and that at investment fast growing niche markets with high aid of several consultants, Ardian helped led to the excellent performance we saw CHRISTOPHE VASSAL CAROLINE PIHAN CEO of CLS Director at Ardian barriers to entry. But we could see they us to address certain issues and explain in 2018 and 2019. Overall, this was Expansion needed to accelerate their external growth our mission as a company more clearly. really the perfect investment for us because strategy, and we knew we could help. That was an Ardian initiative. the company was very strong on the technology side, its markets were fast C.V.: We had already done five small C.P.: Obviously we wanted to help growing, and we were able to contribute acquisitions, but they recommended Christophe and his team expand the other skills and to support a buy-and-build we should accelerate and target larger company and become more financially strategy that created a lot of value. companies to increase our footprint outside successful, but another major attraction It was a very complementary relationship Europe. We started talks with Horizon was CLS’s role in areas like environmental with a lot of trust on both sides. Marine and Woods Hole Group in the protection and climate monitoring. This US right after Ardian invested and we was very much in line with our focus also approached TRE in Italy. Ardian’s on sustainability across all our activities. financial means and expertise were This has become a central part of our essential. Our main shareholder was mission over the past 20 years and in CLS, very strong strategically and technically we found a company that was perfectly but they did not have the money for us aligned with our agenda and one with to invest in larger acquisitions nor the whom we could collaborate to carry financial expertise to evaluate deals and it forward.

66 67 HIGHLIGHTS FROM 2019 EXPANSION PORTFOLIO

Investments Build-ups

Nutripack F2A Company Invest. date Activity Country 2019 estimated revenues (€M) Date of investment: Dec. 2019 (signing) Date of investment: Sector: Packaging for food industry Feb. 2016 02/2020 Manufacturer of packaging for the food industry France 159 Number of build-ups: Nutripack is a leading European Two build-ups in 2019 11/2019 Online platform and manufacturer of premium photo products Germany 42 manufacturer of packaging, offering Sector: both traditional packaging under the Business Process Outsourcing 01/2019 Specialist in new technology consulting France 131 Nutripack brand as well as eco-friendly F2A is a leading Italian provider solutions under the Ecocup brand. of outsourced Human Resources 10/2018 Integrated one-stop-shop ICT provider for SMEs Belgium 29 Ardian will support the group’s and financial administration accelerated expansion plans and the 10/2018 Breakdown coverage and roadside assistance solutions France 192 services, helping its clients roll-out of its eco-friendly packaging offer. manage critical but non-core 07/2 018 Supplier of tinting machines for point of sales Italy 91 corporate processes. In 2019, F2A completed two acquisitions 12/2017 Builder of single homes France 220 to strengthen its position in Italy and increase its software Manufacturer of machine systems for the dental Saal Digital 09/2017 Germany 46 capabilities. and manufacturing industry Date of investment: Nov. 2019 12/2016 Laser systems for eye surgeries Germany 48 Sector: Online platform and manufacturer of premium photo products

Saal Digital is a German manufacturer of high-end photographic products 09/2016 Orthopedic equipment France 98 including photo books and prints. Working alongside existing shareholders Lagarrigue 04/2016 NFC contactless access control systems Austria 70 Nordwind Capital and the Saal family, Ardian will support the company’s plans Date of investment: to expand its e-commerce operations across Europe and beyond. 02/2016 Business Process Outsourcing (HR/Finance) Italy 63 Sept. 2016 Number of build-ups: 07/2 015 E-commerce retailer Germany 217 Seven build-ups in 2019 Sector: Exits 06/2015 Automotive components manufacturer Italy 35 Orthopedic equipment

Lagarrigue is a leading French 12/2013 Contract Development Manufacturing Organization France 142 manufacturer of orthopedic equipment. With Ardian’s

OUR INVESTMENT ACTIVITIES support, the group completed seven build-ups in 2019, bringing the total to 21 in France. It has replicated its successful strategy in CENTRAL & EASTERN EUROPE PORTFOLIO Switzerland since 2016.

Company Invest. date Activity Country 2019 estimated revenues (€M) CCC CLS Ionisos

Date of investment: Jan. 2018 Date of investment: Dec. 2013 Date of investment: Jul. 2016 12/2016 Distributor and supplier of tires and wheels, fleet servicing Hungary 87 Date of exit: Dec. 2019 (signing) Date of exit: Dec. 2019 (signing) Date of exit: Sept. 2019 Sector: Business Process Outsourcing Sector: Data analytics services Sector: Cold sterilization services 12/2015 Animal food manufacturer Poland 133 for Earth observation One of the largest Canadian telecom providers, Ardian has sold its stake in Ionisos 02/2014 Fitness clubs Romania 33 Telus Corp. has acquired the Berlin-based Ardian has sold its stake in CLS to CNP. to 3i Infrastructure. During the call center and digital services provider Over the past six years and with the investment period, Ionisos almost 05/2011 Fiber broadband internet, cable TV and IPTV service provider Latvia 18 CCC from Ardian Expansion. The team had help of Ardian, the company has doubled its revenues thanks to already accompanied CCC from 2009 to completed five acquisitions, significantly strong organic development and a 02/2011 Manufacturer and distributor of agrifood products Poland 38 2013. Thanks to its longstanding relationship expanding its international operations, dynamic external growth strategy. with the company’s management, Ardian and has created Kinéis, the first After completing five acquisitions in Expansion invested again in CCC in January European constellation of nanosatellites. different European countries, it now 2018. During this investment period, CCC During Ardian’s investment, the group generates half its turnover outside more than doubled its size, increasing its grew from 500 employees to 720 and France, compared with 10% when headcount by more than 3,000 to 8,500 doubled its profits. Ardian invested. and opening four new locations.

68 69 “European companies Growth now have great Building continental Europe’s credibility in the US, leading Growth equity platform especially in software,

and their entrepreneurs Ardian Growth is pursuing the next stage of its development, expanding are now aware that its reach across Continental Europe as it deploys its €243 million second- we can really help them generation fund.

scale up.” Alongside its core territories of France and Italy, the team is now active in Spain, Portugal, Belgium and Switzerland. These relatively less challenging growth equity markets offer a major opportunity to capitalize on Ardian’s close cultural + 100 fit with European entrepreneurs and investments its growing origination capacity. since 1998 The ability to invest in larger companies through Growth Fund II – focusing on areas such as online marketing, 20% e-commerce, software development average and IT services – is now supported by year-over-year a dedicated online data and intelligence revenue growth gathering operation, managed by a across portfolio full-time data analyst. This is generating a strong flow of proprietary opportunities LAURENT FOATA OUR INVESTMENT ACTIVITIES among fast-growing private companies. Head of Ardian Growth Their founders repeatedly choose to work 6 with Ardian Growth, thanks to its record portfolio of executing follow-on acquisitions companies’ founders and accelerating its portfolio companies’ relocated international growth. to the US to lead growth The team’s reputation for helping Continental European companies expand into the US received major validation in 2019 when Ivalua, which specializes in procurement software, achieved a valuation of more than $1 billion in its most recent funding round.

During the COVID-19 pandemic, the team helped its portfolio companies address immediate priorities and develop a longer-term response. Ardian Growth's key aims are to adapt to the restrictions on activity, reinforce liquidity and prepare them for a more offensive stance when conditions return to normal.

70 71 In conversation with Ivalua

The partnership behind We were a small, virtually unknown French he has strong intuition which made a big company, and the US was just starting to difference at certain points. You have to Ardian Growth’s see interest in our product. In 2013, I also understand the strengths and weaknesses moved to the US with my family, and over of the management team and know when first $1 billion company the following years we managed to to add new skills. Publisher in the increase the pace of growth. By 2017, e-buying solutions as our US top line was at the level of our L.F.: Understanding the realities on the well as Sustainable European top line. KKR invested in 2017 ground is important. We support our Development markets David Khuat-Duy: We set up Ivalua on the back of this success. This allowed companies in every way we can, and we just over 20 years ago, based in a us to invest more money and expand always try to ensure they benefit from the Paris suburb. For the first decade, we across Asia and in Europe. We raised experiences of all the other entrepreneurs 98%+ developed the technology platform and more money in 2019 and since then we’ve we have partnered with through Ardian grew organically, while always operating recruited a lot of new people. We’re Growth. The interesting thing in Ivalua’s industry-leading customer retention profitably. In 2010-11, we decided it was 600 employees now and we’re developing case is that the company has achieved rate time to expand internationally. We had solutions specific to different industries, to great success while taking its time met Ardian and got to know the team a strengthen our position on the market. We to build a very rich product, always few years before so when the time came, have a very good product and we operate focusing on its long-term vision of how they already knew the potential of our in a deep market, so the potential over the the business should develop. This is quite 300 product and the management team. next few years is clear. rare in the software world. It has been leading companies What we liked about Laurent and the team a pleasure to support the company but the empowered by was the fact that they were listening to L.F.: Going to the US was a major step. credit goes to them – it’s amazing to go Ivalua’s solutions us and understood us, because they had Since David and Dan moved to the US, from a small European player to the top been following us for all those years. it was key to build a strong team to drive three globally. What makes the difference the European operation forwards. As a is the ability to create a team from scratch. Laurent Foata: Our approach to Ivalua is minority investor, we played a supporting You can’t model this – it’s entrepreneurial

OUR INVESTMENT ACTIVITIES representative of the way Ardian Growth role, but David and Dan had to find the magic that happens in an impressionistic, operates. We try to identify companies people and help them develop. When iterative way every day. Sustained effort, with strong potential in the digital space, you look back now, it seems a natural resilience and the ability to reinvent early on in their growth journey. We came process but in reality, a very ambitious yourself: this is the DNA of entrepreneurs. across Ivalua in 2008 at a trade fair and growth project like this has plenty of LAURENT FOATA DAVID KHUAT-DUY first met David later that year. Back then it difficult moments. David and Dan’s ability Head of Ardian Founder and CEO Growth of Ivalua was a small company with about to reinvent and challenge themselves 30 people, but we were impressed by constantly and to trust and rely on people David’s vision for e-procurement and like us on key issues enabled the team to e-sourcing, and amazed by the product move forward and overcome its challenges. which had a very large spectrum of functionalities. They needed to accelerate D.K.D.: Laurent and Geoffroy de La their sales strategy, and we invested to Grandière, Director at Ardian Growth, help them to launch in the US. It was sit on our board and they have guided us ambitious, but we knew the US was key through the different stages of growth and to the evolution of the e-procurement the difficulties we faced. They also used software market. their network to bring in Pierre Demonsant from Planisware, a global provider of D.K.D.: It took us time to gain traction. software solutions for project portfolio Dan Amzallag, CEO of Ivalua Inc., moved management, as a non-executive. He has to the US in 2011 to start the process and great experience and has really supported the first two years were like “crossing us along the way. Laurent also helped us the desert” while we tested the market. with some of our people issues;

72 73 HIGHLIGHTS FROM 2019 GROWTH PORTFOLIO

Investments Ivalua

Date of investment: Apr. 2019 Uptoo Sector: Procurement software Company Invest. date Activity Country

Date of investment: June 2019 Ivalua, a leading global provider Sector: Recruitment platform of cloud-based spend management 12/2019 Consulting in HR and finance France solutions, has raised $60 million Ardian Growth took a stake in Uptoo. Since 2009, the company has established in growth equity funding from Ardian 06/2019 Recruitment platform France itself as a leading recruiter of sales reps and managers in France. and Tiger Global Management Uptoo has more than 3,500 clients across multiple sectors, ranging from to further accelerate its rapid growth. 04/2019 Publisher in e-buying solutions as well as Sustainable Development markets France companies listed on the CAC 40 to SMEs and start-ups. This capital raise values the company at more than $1 billion, making Ivalua 03/2019 SaaS software publisher specialized in multichannel customer relations management France one of only a handful of profitable ‘unicorns’ founded in France. 03/2019 Management solutions for microenterprises France

01/2019 Consulting firm for strategy definition, risk handling and transformation France

09/2018 Merchandising software publisher France Rivalis 08/2018 Project portfolio management software France Date of investment: Mar. 2019 Sector: Consulting 07/2 018 Digital consulting and e-commerce delegation platform Italy Rivalis is a leading French executive Online platform that offers maintenance supervision and repair services support network. The company 07/2 018 Spain for the fleet management sector. supports executives of micro- businesses, craftsmen and SMEs 07/2 018 Outsourcing of marketing services France in France with its network of 500 independent advisers. Rivalis 06/2017 Marketing e-mail software editor France also offers its 17,500 users long-term support and expert advice to help 04/2017 Online parapharmacy France them improve the performance 04/2017 Spanish digital agency Spain of their companies.

03/2017 Software and IT for architects France S&H 07/2 016 Comparison service France Date of investment: Dec. 2019 Sector: Consulting OUR INVESTMENT ACTIVITIES 04/2016 Mobile programmatic buying agency France Ardian Growth took a stake in S&H, a consultancy that specializes in modernizing HR and finance support functions. It has more than 250 employees and revenues 12/2015 Windev software: development software for IS architecture France of more than €30 million. S&H has carried out more than 2,000 engagements 12/2015 Cloud digital agency France with large and medium-sized companies over more than 30 years.

07/2 015 Private sales of DIY and gardening tools France

Eloquant Optimind Exit 05/2015 Self check-in/check-out solutions in hotels France

Date of investment: Mar. 2019 Date of investment: Jan. 2019 12/2014 Customer service/support in digital technologies France Sector: Software publisher Sector: Consulting HR Path 12/2014 Software editor for telecom supervision France Eloquant is a SaaS publisher Optimind is an independent consulting Date of investment: June 2015 specializing in multichannel customer firm that provides support to insurers, 05/2014 Web and cloud hosting solutions France Date of exit: Apr. 2019 relationship management. Its software banks and corporate clients through Sector: Human Resources Consulting 05/2014 Load-testing software editor for web or mobile apps France manages customer interactions and its expertise in qualitative, quantitative and BPO feedback across telephone, email, and administrative risk management chat and social media through solutions. Optimind has more than HR Path is a specialist in consulting, 10/2012 On-line travel agency Italy a single tool. 200 highly-skilled employees, primarily software integration and the serving blue chip clients. outsourcing of HR functions for large companies. After an initial investment in 2015, Ardian Growth reinvested in 2017 to support the company’s growth strategy and accelerate its international development. HR Path is now established as a major independent player with sales in excess of €100 million.

74 75 “We’ve strengthened Ardian North the management teams America Fund at our portfolio companies and we’re Growth opportunities in mid-market seeing an improving industrial North-American companies performance trend across the board.”

Ardian North America Fund completed its third transaction in September 2019 with the purchase of Colonial Bag, a family-owned manufacturer of plastic waste liners mainly serving the medical $10M and sanitation markets in the Midwest. to The team plans to make several further acquisitions of regional players to create $50M Soteria Flexibles, a group of flexible plastic products makers that will have Ebidta of national coverage, serving specialist targeted companies end-markets.

The two existing portfolio companies, HDT Automotive and Revere Plastics, 9 have both reinforced their trend of improving operational performance since VINCENT FANDOZZI investment OUR INVESTMENT ACTIVITIES their purchase by Ardian. HDT significantly professionals Head of Ardian strengthened its management team North America Fund and achieved a sustained improvement in performance at its Canadian plant. Revere Plastics, which makes molded plastic components, successfully integrated Sure-Flo, acquired in December 2018, and is in advanced discussions on several further bolt-on acquisitions.

The team has a healthy pipeline of opportunities among mid-market industrial and business services companies thanks to its disciplined approach to the screening of new potential investments.

The team moved quickly after the outbreak of COVID-19 to ensure portfolio companies could continue to operate safely and to preserve liquidity. It is in close contact with management teams, focusing on safety, operational efficiency and potential new business opportunities.

76 77 In conversation with Soteria Flexibles

First steps in building to replicate that across the country. significantly, just by optimizing the way a national flexible By bringing several independents together we operate and by making some small under the Soteria umbrella, we can keep additional investments. And then longer- products group that high-touch approach to customers in term, once we add further businesses like different regions but really build national Colonial Bag to the group, we can sell our Manufacturer of flexible plastic scale behind the scenes. existing products to more customers across packaging the country and move into other product Vincent Fandozzi: We’d been developing V.F.: Investing in the right initial asset was areas. With very little modification to what the base for behind Soteria Flexibles for a key but it took a long time to close this we do, with our same distributor base, couple of years and in September 2019, transaction, largely because it was a our same way of working, we can move 2 we put the first major building block in proprietary deal with no advisers involved. to another place on the chessboard. plants place by making a substantial investment We were introduced to the owner by a spanning over in Colonial Bag, a family-owned company mutual contact and he was typical of many V.F.: This is an important investment for based outside Chicago. Colonial is in the small business owners in the US in that us – not just because it is our first step in “flexible products” business, manufacturing he’d started Colonial more than 40 years building a national group that will address plastic liners for specialized uses, such ago and grown it to a very nice size. a profitable, underserved market, but also 90,000 sq ft as medical waste. These clients want He is now in his 80s and didn’t have because it says a lot about our approach near customized products in relatively small a clear family succession plan. So part as a fund. Not everyone is willing to roll Chicago, IL volumes and it’s a market that the biggest of the opportunity for us was to provide up their sleeves and take on a more difficult players in the industry are not set up to that succession plan and bring in Brad process like this one because it’s an address – their business is making to transition Colonial from a family-owned investment of time and money, and our time standardized products in very large entity to an institutionally — managed is a valuable resource. Investing that time 16

volumes, so it’s just not efficient for them company. is a calculated risk but the outcome is that extrusion lines to serve our customers. we’ve ended up with a ton of opportunity

OUR INVESTMENT ACTIVITIES T.W.: It took almost a year to get the to grow the business – and it’s only Todd Welsch: Despite the consolidation investment done, mainly because a lot strengthened the base behind Soteria. in the flexibles market – or perhaps of the information that we needed to do because of it – there’s a real need for the due diligence just wasn’t available. quality producers in our segment. The big We had to help assemble it and often From left to right: opportunity we see is to bring together explain why we needed it – without VINCENT FANDOZZI BRAD HERBOLSHEIMER a national group of three or four regional intermediaries and advisers pushing the Head of Ardian CEO of Soteria Flexibles suppliers like Colonial Bag covering process forward, educating the seller North America Fund multiple geographic areas, so that we was part of our job as the buyer. can serve regional and national customers TODD WELSCH efficiently while maintaining quality. B.H.: It was definitely a challenging Director at Ardian Soteria Flexibles will be the holding process but now that we’re able to start North America Fund company for that group. work on the next phase, the opportunities are huge. One common feature of Brad Herbolsheimer: Colonial Bag gives businesses like Colonial is that they have us a great start in building Soteria. excellent customer relationships but often I came in while the deal was in due haven’t been managed to maximize diligence and when I looked at the productivity and profit. We have a very company closely, I found a great strong demand from existing customers combination of high-quality end markets and now that we’re working to increase with a strong recurring demand and productivity, we expect earnings to grow longstanding, passionate employees who rapidly. We’ve already identified ways to have a customer-first mindset. We want increase output from the existing plant very

78 79 “We are a preferred Co-Investment co-investor in top-quality Giving LPs a c c e s s deals because we make to the world’s top Co-investment has moved decisively decisions quickly and into the mainstream in recent years, private equity sponsors attracting growing interest from both use our global network LPs and sponsors. Ardian’s long experience in this strategy to add value during due and strong industry relationships position it at the center of this accelerating diligence and the trend. Most transactions involve Ardian Co-Investment team taking passive, holding period.” minority stakes in European, US or Asian buyouts alongside leading GPs. However, in some cases, the team plays an active role in the company’s development, taking a seat in the boardroom alongside a strategic investor, controlling family $2.5Bn or private equity sponsor. raised for Co-Investment At $2.5 billion, the fifth-generation Fund V co-investment fund can make significantly more – and larger – commitments than previous funds, as witnessed by last year’s $125 million investment in US 15 fibre-optics company Zayo, its biggest investments transaction to date. This was one of in 2019 15 investments by the teams based in Paris and New York, which also included the first commitments alongside ALEXANDRE MOTTE OUR INVESTMENT ACTIVITIES Asian GPs. Ardian Co-Investment also Head of Ardian 29 provided further funding to support three Co-Investment investment follow-on acquisitions. professionals Ardian’s ability to move quickly and bring value to transactions through its sector expertise and global network of contacts has reinforced its reputation as a co-investment specialist. This has led to much greater deal flow, although the teams remain extremely selective, targeting resilient companies that are first or second in their markets and can show a strong history of earnings growth.

As the COVID-19 pandemic unfolds, the Co-Investment team is monitoring PATRICK KOCSI the situation of its companies closely Head of US alongside its lead-sponsors. Its focus Co-Investments on quality and diversification has With the strong support of three members cushioned the impact, although the of the Executive Committee: BENOÎT VERBRUGGHE, team inevitably has some exposure MARK BENEDETTI and VLADIMIR COLAS to sectors that are more affected.

80 81 In conversation with Ardian Co-Investment

A.M.: We had a similar situation with and screening M&A opportunities in Europe How does Ardian support Palacios in Spain and Emera in France. and the US. We are ready to move quickly These were larger transactions and again and help provide the financial support sponsors and companies our ability to underwrite 30% to 50% of the Palacios needs to take advantage of major equity investment was a big factor for the opportunities. to create value? sponsor. Our longstanding Fund of Funds relationship with MCH and Naxicap was P.K.: It is important to work closely with the also important. But most of all, Ardian’s lead sponsor and help them execute the Alexandre Motte: I think one of our major experience and knowledge of the food, value creation plan in whatever way we advantages as a co-investor is our ability agribusiness and healthcare sectors were can. Contributing directly to the governance to use Ardian’s expertise and networks key, because it allowed us to complete our of the company aids that process because to add value for sponsors and portfolio due diligence quickly and also because it helps us to maximize the contribution we companies. The Emera deal is a great the management teams recognized the value can make. There is a lot Ardian can bring example as we bring a lot of expertise our network in these sectors could bring to a co-investment situation. that complements what Naxicap can offer. for their business. So having Ardian on This includes access to our international board as a co-investor helped the sponsors office network, especially in Italy and differentiate from other bidders and win Spain, as well as France, to help source the deal in a very competitive process. ”Ardian has been an invaluable M&A opportunities and accelerate resource to Nautic and LindFast, Emera’s international expansion. Further P.K.: People often think of co-investment and we are grateful for expertise is available thanks to input from as a passive investment alongside the Investment date: Apr. 2019 the continuing relationship.“ ALEXANDRE MOTTE PATRICK KOCSI Sector: Industrial fasteners Ardian’s digital officer, who helps with the main sponsor, but in instances where HQ: Minnesota, US BILL NIKETAS Head of Ardian Head of US digital transformation of all our portfolio we can add real value, we often get much Sponsor: Nautic Partners CEO of Lindfast Co-Investment Co-Investments Ardian representative: companies. We have also started to discuss more actively involved. We have a board Faruk Amin, partnerships and business development seat at Lindfast, so we are speaking to Managing Director, opportunities with other Ardian portfolio the CEO and Nautic Partners regularly New York, US

OUR INVESTMENT ACTIVITIES companies. In addition, as improving ESG and supporting them wherever we can. performance is key to the value creation plan, we will give Emera access to our A.M.: Yes, it is the same with Palacios and ”As of the due diligence phase, specialist Sustainability team. Emera. We are happy to play an active role we identified Ardian as a in the boardroom to support the company future shareholder capable Investment date: Dec. 2019 Patrick Kocsi: We can also make a of contributing significantly and the lead sponsor. For example, Sector: Nursing Homes difference in the pre-signing phase, which with Emera, Antoine Lencou-Barême, HQ: Mougins, France to Emera’s development.“ Sponsor: Naxicap can be key in some cases. In the Lindfast Managing Director at Ardian in charge of ERIC BAUGAS Ardian representative: deal, it was our ability to react that gave the transaction, has known the CEO for Antoine Lencou-Barême, CEO of Emera us an edge, as well as our scope to invest more than twenty years, and we are also Managing Director, larger tickets through Fund V. We already partnering with the company’s founder, Paris, France knew Nautic Partners well through our who re-invested in the buyout, so there is Fund of Funds relationship, so we knew a very strong set of relationships around they had a strong track record in the the table. With both Emera and Palacios, ”Ardian participated in the sector. However, this was a large deal we have started to play a very active role in acquisition process as of the for them so they wanted a partner to come executing the value creation plan, especially first meeting and its presence Investment date: July 2019 in alongside them to bid on the asset. in areas like digital transformation, which and commitment to the deal Sector: Food Products guaranteed its success.“ Nautic approached us early in the process is becoming a huge issue in the healthcare HQ: La Rioja, Spain and we did our due diligence alongside sector. With Palacios, we are focusing Sponsor: MCH PEDRO DOMINGUEZ Ardian representative: them. Our ability to speak for a sizeable our effort on accelerating international Carole Barnay, CEO of Palacios portion of the equity at signing became expansion by leveraging our connections Senior Managing Director, a critical component of securing the deal to enhance organic growth, particularly Paris, France for the sponsor. in France. We are also actively sourcing

82 83 HIGHLIGHTS FROM 2019 12/2018 Third-party claims management and property loss adjusting services United States 3,258

Investments Galderma Lindfast Solutions Group 09/2018 Manufacturer of natural and clean label food ingredients United States 80

Date of investment: Sept. 2019 Date of investment: Apr. 2019 05/2018 Regulatory compliance consultancy United States 174 Emera Sector: Dermatology Sector: Specialty fasteners Lead sponsor: EQT Partners Lead sponsor: Nautic Partners 05/2018 Skincare brand United States 1,171 Date of investment: Dec. 2019 Sector: Nursing homes 05/2018 Industrial engineering group France 1,999 Other shareholders: Naxicap, Claude Cheton (founder) Palacios Germany 03/2018 Traffic safety services provider Sweden 379 Date of investment: July 2019 United Kingdom Sector: Food manufacturer BrandSafway Lead sponsor: MCH Private Equity Project Home Care 02/2018 Nursing home operator Germany 775

Date of investment: Dec. 2019 01/2018 Airport ground support material France 684 (signing) Sector: Scaffolding and industrial 12/2017 Human resource services United States 278 services Lead sponsor: Clayton, Dubilier & Rice 11/2017 Mobile water treatment provider United States 34

10/2017 Security systems & solutions United Kingdom 307

Insight Global Trade Me 02/2017 Caravan holiday park operator United Kingdom 556

Date of investment: Sept. 2019 Date of investment: May 2019 02/2017 Business process outsourcing services for the US freight industry United States 1,085 Sector: Recruitment Sector: Marketplace Lead sponsor: Harvest Partners Lead sponsor: Apax Partners 01/2017 E-commerce platform Poland 641

11/2016 Flexible packaging manufacturer United States 1,232

CO-INVESTMENT PORTFOLIO 08/2016 Cloud services for mid-size companies United States 111 08/2016 Industrial cleaning services United States 169 Company Invest. date Activity Country 2019 estimated revenues (€M) 06/2016 Pharmaceutical synthesis and specialty ingredients France 973

03/2020 Communications infrastructure services United States 2,314 06/2016 Healthcare cost management solutions United States 876

01/2020 Distributor of medical devices to hospitals Spain 186 06/2016 Nuclear measurement equipment and services United States 412 OUR INVESTMENT ACTIVITIES 01/2020 Scaffolding and industrial services United States 4,729 03/2016 Medication management and mail-order pharmacy United States 252

01/2020 Non-food discount retailer Netherlands 5,114 03/2016 Vehicle leasing and fleet management services Netherlands 1,538

Project Lounge 12/2019 Airport benefits access provider China 191 02/2016 Rural retailer United States 1,528

12/2019 Nursing home operator France 245 12/2015 Food ingredient solutions France 433

Project Classified 11/2019 Media conglomerate Germany 3,112 04/2015 Designer and manufacturer of custom rechargeable power systems United States 302

11/2019 Platform and producer of high-end photo products Germany 42 04/2015 Provider of air medical services United States 4,095

09/2019 Staffing & employment solutions provider United States 2,119 03/2015 Provider of pet products and services United States 9,916

09/2019 Dermatological treatments and skin care products Switzerland 2,748 03/2015 Manufacturer of aseptic packaging systems Switzerland 1,784

07/2 019 Food and ready meals manufacturer Spain 232 06/2014 Manufacturer of automotive and industrial belts and hoses United States 2,757

05/2019 Auction website for autos, properties and jobs New Zealand 162 03/2014 Publisher of business management and e-commerce software United States 223

04/2019 High-touch specialty fasteners for industrial parts distributors United States 226 12/2013 Manufacturer of generic pharmaceutical products Switzerland 360

04/2019 Entertainment industry solutions for accounting and human resources United States 284 11/2012 Engineering services and products to oil companies United Kingdom 541

03/2019 Linux operating systems for enterprises Germany 363 01/2012 Windows and doors manufacturer United States 3,831

01/2019 Leading e-commerce service provider China 275 07/2 011 Online travel agency France 533

Project Credit Report 01/2019 Commercial credit data provider United States 1,569 12/2007 Life insurance Korea 7, 8 9 0

84 85 “The speed and size Infrastructure of our latest fundraising Addressing climate change underlines Ardian’s with major investment reputation in this in renewables asset class among global investors.” Ardian Infrastructure confirmed its strong reputation among investors during 2019, raising €6.1 billion for Fund V in just six months. This is the largest European infrastructure fund ever raised and the largest direct fund Ardian has closed to date, more than doubling the size of Fund IV. The team finished 2019 with another 45 important milestone, sealing Ardian’s investments first infrastructure deal in Germany since 2005 by acquiring a 26% stake in EWE, the country’s fifth largest integrated utility company.

3.5 gw Investment activity during 2019 focused green energy heavily on renewable energy assets in Northern and Southern Europe and in the US. Renewables now account for around 50% of global deal flow. Ardian is emerging as a major industrial MATHIAS BURGHARDT 4 OUR INVESTMENT ACTIVITIES player in this sector, thanks to its team members Head of Ardian operational expertise and its embrace in charge of Infrastructure and digital and data of data analysis and digital technologies Member of the management to enhance the productivity and Executive Committee performance of its assets.

Ardian is convinced that the ability to generate growth while reducing carbon emissions will determine which infrastructure assets – and investment managers – generate sustainable value in the future. The team is now monitoring carbon emissions in every portfolio company and is supporting management companies to reduce them.

Despite the economic impact of the COVID-19 pandemic, the team is confident in the resilience and defensive nature of the portfolio, which is made up of essential infrastructure assets run by highly skilled management teams with moderate leverage.

86 87 In conversation with SEA Milan Airports

Seeking a “new normal” for our industry through long-term collaboration

Armando Brunini: Milan is one of the most to achieving environmentally and socially including for carbon efficiency and economically important cities in Europe with sustainable growth. This means finding reducing emissions. Firstly, because a growth rate – before the COVID-19 crisis ways to greatly reduce our carbon we believe it’s our duty, and secondly, – that was above the Italian average. emissions while still allowing our airports because I think companies that are not Our mission as operators of Linate and to grow. We have recently launched carbon-efficient will be obsolete within Operator of Milan airports: Linate Malpensa airports is to support the our Air Carbon website, which produces a few years. No one will want to invest (city airport), prosperity of this region, but Milan is in an estimate of the amount of carbon in them. Malpensa T1 (international gateway) the epicenter of the COVID-19 pandemic emissions from any airport in real time. and Malpensa T2 in Europe and consequently our airports are It has shown that around 30% of emissions A.B.: To reduce aircraft emissions, we are (smart airport) facing the most challenging crisis in their comes from the transport people use to replicating an initiative Ardian put in place history. COVID-19 is a “war” that the whole travel to and from the airport, and more during its ownership of London Luton world is fighting but undoubtedly the than 60% is from aircraft during take-off Airport, offering lower fees for newer

transport industry is particularly exposed. and landing. Less than 10% comes from aircraft that are quieter and emit less CO2. 3 the infrastructure itself, but as airport And in terms of the infrastructure itself, attractive, Mathias Burghardt: Ardian supported the owners, our duty is to work on the 90% we can use digital systems and biometrics individually designed terminals management team at SEA who reacted we cannot directly control. to beat the queues and create a passenger immediately, creating a Crisis Management experience as seamless as possible.

OUR INVESTMENT ACTIVITIES team which is coordinating both short-term A.B.: This is our fundamental plan for All these measures will improve productivity, actions and the medium-term response. these airports for the future. Unless we lower costs and make the business more NEXT SEA rightly made their top priority can reduce emissions from those areas energy efficient. SEA Milan Airports is 5 YEARS safeguarding the health of staff and not directly under our control, achieving resilient and the enduring strengths of the passengers in every way they could. the kinds of reductions that are needed city and region we serve will ultimately of growth based on ARMANDO BRUNINI MATHIAS BURGHARDT service quality, traffic will be impossible. We’re collaborating give us competitive advantages and CEO of SEA Milan Head of Ardian development, digital Airports Infrastructure and A.B.: We have also acted swiftly to reduce with the city authorities to improve the support us in moving back to growth. transformation, costs and defend our cash position, which express train link to Malpensa and we’re engaging passengers, Member of the sustainability Executive Committee is strong. We are in the process of setting investing alongside the train company M.B.: The airport can’t make all these scenarios for both the “new normal” that our to market the service. That will mean changes by itself, but it can collaborate industry will move into, and the transition less income from parking for the airport with stakeholders actively. Our vision of phase. To adapt we will need to be as operator, but we must shift the balance airports is that they’re not just isolated HIGHEST flexible as possible to minimize the negative from cars to public transport. We must all assets. We have to contribute to a region RATING impact, but also to capture the opportunities be aware of our corporate responsibilities and maintain a dialogue with local that emerge from every crisis. in helping to reduce emissions. Malpensa authorities, neighbors and all stakeholders in Europe in terms of carbon emissions is a big site with plenty of capacity to around the airport. We want to be partners. containment M.B.: Airports are essential for economies grow – unless we can demonstrate real to function and grow, but even before progress on sustainability, we will not be COVID-19 they were facing huge challenges able to make the most of that opportunity. due to the urgent need to address climate change. As we stabilize and transition M.B.: It’s the same for all our assets and to the “new normal” for air travel, we must this is why we’re now setting non-financial remain firmly focused on our commitment targets for all our portfolio companies,

88 89 HIGHLIGHTS FROM 2019 INFRASTRUCTURE PORTFOLIO

Investments Exits

EWE Hill Top Energy Center Indigo Company Invest. date Activity Country 2019 estimated Date of investment: Jun. 2014 Date of investment: Feb. 2020 Date of investment: July 2019 revenues (€M) (Signing Dec. 2019) Sector: Gas-powered generation Date of exit: Sep. 2019 Sector: Utilities Sector: Car parks Once complete in mid-2021, Hill Top 02/2019 Sweden under construction EWE is an innovative service provider Energy Center will be one of the most Ardian sold its c.50% stake in Indigo 06/2016 Wind energy Sweden 10 in the energy and telecommunications efficient natural-gas-fired power plants Group, the world-leading car park & 01/2016 Norway 80 sectors and is the fifth largest utility in North America, with generating individual mobility group. Since Ardian company in Germany, integrated capacity of 620 MW. The company became a shareholder, Indigo has 12/2019 Utilities Germany 5,704 (2018) along the full value chain and experienced significant international will sell its electricity to the 09/2019 Toll road Chile – with a strong regional footprint Pennsylvania-Jersey-Maryland growth in Europe, North and South in Lower Saxony. It has more than regional transmission organization, America. Revenues rose 30% and ASR Wind 08/2019 Wind energy Spain 83 8,500 employees and generated the largest competitive power market the number of employees grew from 07/2 019 Wind and solar energy Spain and Italy 42 €5.7 billion in revenues in 2018. in the US. 15,000 to 21,000. As a co-shareholder alongside local 09/2019 (sign.) Peru – public shareholders, Ardian will South America Renewables 09/2016 Solar energy Chile 8 support EWE’s strategy of innovation 09/2016 Peru 6 and help shape its transition to ASR Wind Tunels Barcelona Cadi sustainable energy and its sizable Hill Top Energy Center 06/2019 Natural-gas-fired power plant United States under construction Date of investment: Aug. 2019 Date of investment: May 2015 development plan in fibre technology. Giralda 02/2019 Solar energy Spain under construction Sector: Wind energy Date of exit: Jul. 2019 Sector: Toll road 10/2018 ASR Wind is a 420 MW wind platform located in Spain. Ardian sold its 49.9% stake in Tunels 09/2018 Wind energy United States 75 Ardian will help the company Barcelona Cadi, comprising two assets: 01/2018 to expand its generating capacity Tunel de Vallvidrera (11.5km) and Tunel del 09/2018 Motorways Italy 1,717 (2018) through further build-ups. Cadi (28.5km). During Ardian’s holding period, the concession experienced a Ausines 02/2018 Wind energy Spain 7 significant increase in traffic, as well as Parrot 02/2018 Wind energy Spain 6 increasing operational and financial United States efficiency. Additionally, many sustainability 09/2017 Oil and petrochemical storage 224 initiatives were successfully implemented. and Europe 06/2017 Toll road Italy 64

OUR INVESTMENT ACTIVITIES 06/2017 Oil transportation France 79

Tolve Windfarms Holding 06/2017 Wind energy Italy 6

03/2016 Solar energy Italy 2 Merger 01/2017 Merger of ASTM with SIAS and voluntary tender offer 05/2016 Toll road Portugal 505 by ASTM 02/2016

Date of investment: Sept. 2018 09/2017 Oil storage France 82 Date of merger: Dec. 2019 12/2015 Sector: Motorways 04/2015 Airport Italy 425 Ardian supported the merger of ASTM with SIAS. This operation aims to create 09/2011 Wind energy France 42 an integrated industrial group able to 07/2 011 Solar energy Italy 41 achieve its objectives for growth and 06/2011 Rail France 256 internationalization in an efficient and competitive manner. The merger will 01/2011 Toll road Spain 32 simplify the structure of the group, positively 12/2013 impacting all stages of the business Gas distribution Italy 1,187 process: operational and decision-making 09/2009 efficiency, business development, and 04/2009 access to cash flows and to capital Renewable energy Italy 46 markets. The transaction promotes the 07/2007 group’s “One Company” initiative, which 06/2009 Toll road France 19 both the Gavio family and Ardian support. 10/2007 Hospitals Italy 27

90 91 Private Debt “We are now strongly positioned among Strong European teams deploy the largest and most record amount of capital experienced private debt providers in Europe with ample opportunity to expand in senior lending.” Ardian Private Debt consolidated its leading position in Europe in 2019, closing its fourth-generation vehicle at €3 billion. In a market where investors have increasingly favored the largest €1Bn and most experienced players, the team arranged in last has doubled assets under management 12 months to $7 billion over the past two years. During 2019, the team deployed €1 billion, completing 13 mid-market transactions with strong covenants 400+ across Western Europe out of Fund IV. transactions reviewed per The team is expanding its activities year in lower-risk, stretched senior lending, broadening its product range beyond unitranche and junior facilities and MARK BRENKE OUR INVESTMENT ACTIVITIES signaling its intention to offer a meaningful Head of Ardian Private Debt 18 financing alternative to banks across the investment capital structure. As European banks professionals retrench, more borrowers are considering fund providers for senior facilities, while the maturing of the asset class has increased demand from investors for a wider choice of risk/return profiles.

Ardian continues to expand its product offering and the reach of its investment teams – notably to Benelux and Scandinavia – to better meet the evolving needs of both investors and borrowers.

Ardian Private Debt’s focus on borrowers with resilient, highly visible cash flows leaves the portfolio relatively well positioned to weather the COVID-19 pandemic. The team enjoys excellent access to information from borrowers, close relations with their equity sponsors and strong legal documentation.

92 93 In conversation with Alpega

Fund financing pushes J.S.: If I compare this relationship with my reporting system we have with Ardian is further into traditional previous experience with a bank syndicate, very reasonable compared to what we I can see the benefits of fund financing would experience with commercial banks. banking territory very clearly. One major advantage of We don’t have to deal with multiple working with Ardian is its flexibility in reporting streams from four or five different structuring the financing to suit our needs, banks that tie up time from management compared to the more standardized terms and finance teams. This leaves us more Transport and and products that commercial banks offer. time to get on with really driving the logistics software Then there’s the level of understanding business. We’re pushing very hard to Julia Seidl: Our company was originally they have of our business, which is much achieve sustainable double-digit growth a carve-out from Wolters Kluwer higher than what I experienced with a lot over the next couple of years and although + Transportation Services, with Ardian of banks, and the fact that we deal with we have no M&A plans today, we will 30 providing the debt for our private equity the same people all the time. We have continue to look for opportunities. With years owner, Castik Capital. We operate a a single relationship with the Ardian deal these ambitions, we definitely hope to have of experience freight marketplace where companies can team, so we don’t have to worry about Ardian as a long-term partner to support us. deal with each other directly to arrange being referred to multiple departments of transport, and we also have a Transport several different banks. M.B.: And us too. Having that + Management Software business that sells straightforward bilateral relationship brings 200,000 and implements our logistics software M.B.: From our perspective those points significant benefits because it allows us to users in large companies. The original deal are equally important. We have built up a provide a bespoke facility that meets the was back in early 2017, before I joined good knowledge of Alpega’s sector, and borrower’s needs much better. I believe the business, but since then Ardian has this allows us to take a flexible approach our ability to do that and to manage our provided two more funding lines for to their funding needs and to move quickly borrower relationships through local teams 80 an add-on acquisition in Spain and to when they need us to, for example when gives us a big advantage in this market, countries

OUR INVESTMENT ACTIVITIES support investment in organic growth. M&A opportunities come up. And although especially with borrowers who have never leverage on this deal was low on day one used fund-led finance and would always Mark Brenke: Our relationship with because of the challenges of executing the have gone to a bank in the past. They Alpega is interesting because this deal carve-out from Wolters Kluwer and because understand the benefits, but they also want was our first stretched senior facility, so it the business model is fairly complex, there someone local to talk to – as they would shows how we are expanding the strategy was always an understanding between expect from a bank. to include situations with lower leverage, us and Castik that over time there would JULIA SEIDL MARK BRENKE where bank syndicates have always been be the potential to provide further funding CFO of Alpega Head of Ardian the dominant providers. As European to support the company’s growth. Again, Private Debt banks continue to retrench, even from mid- having a good understanding of their market corporate lending, more borrowers business and a stable relationship with are starting to see the advantages of the management team locally allows us working with a debt fund for senior debt, to give them the flexibility they need from as opposed to the unitranche products us as their funding provider. that we’ve historically been known for. On the other side of the coin, our investors J.S.: The financing we have from Ardian have also become more familiar with our is a bit more expensive than the package asset class over the past few years and we could get from a bank but we’re ready are able to distinguish between different to pay a premium for the service we get risk/return profiles on private debt. because we feel Ardian can grow with That means there’s growing appetite us. And another important point from our among LPs to provide funding for these perspective is that although the refinancing lower-leverage, lower-risk deals. process itself is fairly intense, the ongoing

94 95 HIGHLIGHTS FROM 2019 PRIVATE DEBT PORTFOLIO

Investments

Syclef A-Plan Company Invest. date Activity Country 2019 estimated revenues (€M) Date of investment: Oct. 2019 Date of investment: Mar. 2019 Sector: Commercial and industrial refrigeration systems Sector: Multichannel insurance 10/2019 Commercial and industrial refrigeration systems France 150 brokerage Ardian arranged a unitranche facility to support the refinancing and capital reorganization of Syclef, Ardian arranged a subordinated 08/2019 Health and safety testing services United Kingdom 155 a French company that installs and maintains debt facility to support HgCapital’s 07/2 019 Surgical Instruments France – commercial and industrial refrigeration systems. investment in A-Plan, one of the UK’s largest multichannel insurance Syclef’s staff carry out around 120,000 site visits 03/2019 Maintenance of conveyor systems France 150 per year. brokers. Founded in 1963, A-Plan specializes in personal lines 03/2019 Multichannel insurance broking group United Kingdom 180 insurance and has a growing presence in niche markets such 02/2019 ECM software development and consulting services Germany 80 PTSG as SME policies. 11/2018 Financial products for finance professionals France 40 Date of investment: Aug. 2019 Sector: Health and safety testing services 09/2018 Vehicle leasing and fleet management solutions Germany 60 NetCo Ardian provided a unitranche facility 09/2018 Supplier of managed IT services to SMEs Denmark 110 to support Macquarie’s public-to- Date of investment: Mar. 2019 private acquisition of PTSG, a provider Sector: Maintenance of conveyor 07/2 018 Frozen pastries France 330 of safety-critical testing, inspection, systems compliance and installation services 06/2018 General sales and services agent France 120 Ardian arranged a unitranche that was quoted on the UK’s AIM facility to support IK Investment market. The company services more 05/2018 Developer of software solutions for patient care service providers Germany 40 Partners’ investment in NetCo than 180,000 buildings in the UK, group. Founded in 1902, NetCo 03/2018 Independent financial adviser France 50 across a wide range of industries. is a French family-run industrial An additional funding line of group specializing in the design, 10/2017 Nursing home operator Germany 215 £15 million was provided in manufacture and maintenance November 2019 to support further 10/2017 Insurance broking software Netherlands 70 of conveyor belt systems used development and service acquisition in multiple industries. costs. 08/2017 Transport and logistics software Belgium 35

05/2017 Facilities management procurement United Kingdom 140 OUR INVESTMENT ACTIVITIES Landanger 02/2017 Specialty packaging France 75

Date of investment: July 2019 08/2015 Pharmaceutical contract manufacturing France 185 Sector: Surgical Instruments 08/2013 Specific sealing solutions France 160 Ardian provided a unitranche facility to support 21 Invest’s acquisition of Landanger. Founded in 1947, the group manufactures, distributes and services 08/2012 Fire resistant polyamide-imide fibers France 50 surgical instruments, with a strong position in 60 countries including France. 03/2010 Do-It-Yourself retail Benelux 1,390

Build-ups

ECS Mobility Holding

Date of build-up: Aug. 2019 Date of build-up: Aug. 2019 Sector: Air freight Sector: Vehicle leasing

ECS Group is a world leading global general sales agent, The company offers full-service B2B vehicle leasing and fleet managing more than 1.1 million tons of cargo per year on management, leasing for closed user groups, and offers behalf of airlines. The company acts as a strategic partner for all-inclusive 12-month leasing packages and an online lead airlines by marketing and managing even their most complex generation platform for new B2C car sales. In August 2019, cargo requirements. In August 2019, Ardian provided an Ardian provided an additional €30 million to support the additional €58 million to support the company’s buy-and- business’s rapid organic growth. build expansion plans.

96 97 “We are now a Real Estate recognized player Creating office space in our markets for for the cities of tomorrow the types of deal we target, and we have

gained a reputation Ardian Real Estate demonstrated the strength of its targeted investment as a reliable name strategy in 2019 achieving the third exit from its debut fund, reinforcing to do business with.” its record of achieving excellent returns for LPs. The team focuses on core-plus and value-add office properties in major European cities, where a hands-on management team can create very 2 significant value. Last year’s disposals 230,700m included a value-add project in Paris that of lettable was sold a year ahead of its scheduled space under delivery and achieved returns above management across 5 cities target, thanks to a major shortage of modern, grade A office space.

With low interest rates expected to 14 continue for several years, competition for quality assets in the areas in which deals since inception Ardian operates remains fierce. However, the team’s network of offices in Paris, Frankfurt, Milan and most recently Madrid STÉPHANIE BENSIMON OUR INVESTMENT ACTIVITIES is an important differentiator. Its success Head of Ardian in completing four investments as off- Real Estate 18 market deals shows the competitive investment advantages that come from an in-depth professionals local network and knowledge of the region. In addition to Paris, Milan, Rome and major German cities, the team plans to start investing in Madrid and Barcelona.

Ardian Real Estate applies a proprietary sustainability framework across the portfolio, using ESG criteria to benchmark each asset and guide its plans to not only ensure efficiency and performance, but also improve the tenant experience.

Since the COVID-19 pandemic began, the team has worked closely with tenants to jointly address any potential liquidity issues. None has faced difficulties so far. Refurbishments have slowed down to ensure construction company employees can work safely.

98 99 In conversation with WPP

How close collaboration with a tenant created a landmark building

Stéphanie Bensimon: We bought the S.B.: It was really impressive to see how S.B.: We had a very constructive working WestBridge building with LaSalle in far they had already gone in London relationship where we always found the June 2017 from its occupier, Lagardère, in terms of what works for them and their right balance between creating a project and we had 18 months to plan the employees. It’s very unusual for future that was as standard as possible and one WPP’s new campus in Paris, due to open refurbishment before they left in December tenants to be so closely involved in the that was as tailored as possible to their in 2021 2018. The building was obsolete, but we way we refurbish a building, but working needs. We took the risk to go as far as liked the size and location and we thought with them gave us fantastic insight into having a restaurant on the eighth floor there was an opportunity to do something what this type of tenant was looking for. and triple height entrance halls, and WPP 2 that would transform the Levallois area, The result was a project that achieved even agreed with us about targeting the highest 28,000m so we launched a contest between four higher standards than we were originally possible standards. I think this is going to renowned architectural practices. planning because we had their input from be the best building in the area and, given We were approached almost immediately the start. We can see from the market that its size and location, a unique asset. 2,800m2 by WPP, who were looking to create a the way tenants want to use their buildings added to the campus for their agencies based in Paris. is changing completely, so this was a great P.K.: That was the intention on both sides, existing building They first saw the building in October opportunity to understand what they want. I think – to create a new standard for prime when the process was just getting started. It was a very valuable experience. buildings.

Piers Knuckey: That’s what we liked about P.K.: The reason we were so keen to help S.B.: Definitely. Our strategy is to buy 2,500 the project – an existing concrete frame shape the project is that real estate has buildings that we can reposition and to users, up from 1,300 in old building

OUR INVESTMENT ACTIVITIES with potential. When Ardian and LaSalle become a key enabler of WPP’s corporate create value regardless of the property confirmed they were going to double the strategy. Our global campus strategy brings cycle. With WPP’s help, we’ve developed capacity of the building from 1,300 to our agencies together under one roof and a super-prime asset in Levallois with twice STÉPHANIE BENSIMON PIERS KNUCKEY 2,500 people and increase the width encourages greater collaboration, creativity the potential occupancy of the original Head of Ardian Group Real Estate of the floorplate from 12 to 18 meters, and innovation among our people. Having building. It’s a great example of what our Real Estate Manager at WPP we felt this building would provide us with a single location in-market enables us to fund aims to do. the flexibility we were aiming for. Also, provide integrated solutions for our clients as the project involved reusing most of the and in turn, gives them easier access existing structure from the late 1980s, we to the breadth and depth of talent across were doing the right thing environmentally. WPP. In 2021, when Paris opens, we There’s a lot of talk about “green buildings” will have about 2,500 people sharing but the greenest building of all is the one world-class, dynamic spaces where they that already exists. Key to the project’s can meet, eat, work and welcome clients success was having approached Ardian and partners. By partnering early with and LaSalle at the very beginning. It gave the developer, it meant we could get the us the opportunity to achieve more of what important facilities we were looking for, we were looking for. After our first visit such as a double-height townhall and to the building, we invited Ardian and restaurant space on the ground floor and LaSalle to London to tour our state-of-the- a 150-seat auditorium. We also convinced art offices at Sea Containers House and them to extend the lifts to the rooftop explain our campus philosophy. It was a garden on the ninth floor so it can be good fit: we all wanted to create a unique accessed directly from reception. product in Levallois.

100 101 HIGHLIGHTS FROM 2019 REAL ESTATE PORTFOLIO

Investments Exits

Fidia Colombo, 80 Building Name Invest. date Type of asset Country City Surface area on acquisition Country: Italy Country: Italy (in m2) Date of investment: Dec. 2019 Date of investment: March 2017 Date of exit: Nov. 2019 (signing) 2 Fidia 12/2019 Office complex Italy Milan 6,800 Acquired in December 2019 and situated in Milan, the 6,800m building is currently Sept. 2020 (closing) fully vacant and will undergo major renovation works. The aim is to obtain a prime grade A office building that complies with the highest standards of energy performance. Ardian signed a preliminary Pyramids 10/2019 Office complex France Paris 3,320 Delivery is expected by Q3 2022. agreement for the disposal of the property with an institutional Roncaglia 07/2 019 Office complex Italy Milan 6,800 German investor, with closing to Elisa 05/2019 Office complex Germany Berlin 17, 8 0 0 take place in Q3 2020, after the completion of the works. Acquired Villa Emiliani 12/2018 Office complex Italy Rome 2,200 Pyramids in 2017, the 18,000m2 building Country: France is undergoing major renovation Carl 11/2018 Office complex Germany Berlin 29,500 Date of investment: Oct. 2019 that will deliver a grade A office property by Q2 2020. Melzi d’Eril 11/2018 Office complex Italy Milan 4,000 Ardian acquired a 3,320m2 The property has an occupancy Haussmann-style office complex in Store 09/2018 Office complex Germany Berlin 12,600 rate of 90%, which could rise Paris’ first arrondissement. Very well to 100% by the end of the located in the central business district, 06/2018 Office complex France Paris 8,100 refurbishment. the building will be refurbished to 05/2018 Office complex France Paris 10,600 bring the office space up to prime market standards and provide new 05/2018 Office complex France Paris 7,10 0 services to future tenants. Konrad 02/2018 Office complex Germany Munich 16,000 Country: Germany Date of investment: Nov. 2016 Via Vittorio Veneto, 89 03/2017 Office complex Italy Rome 19,600 Date of exit: Jan. 2020

Roncaglia During the investment phase, Colombo, 80 03/2017 Office complex Italy Rome 18,000 Country: Italy the Ardian Real Estate team 03/2017 Office complex Italy Milan 18,200 Date of investment: July 2019 completed a comprehensive upgrade of the property, Ardian acquired a 1960s building Contrada la Marchesa 03/2017 Office complex Italy Bari 11,90 0 repositioning and rebranding 2

OUR INVESTMENT ACTIVITIES with 6,800m of gross floor area, the office complex as Konrad 01/2017 Office complex Germany Munich 38,200 located in the south-west of Milan in September 2017. In 2019, close to the new CityLife business it reached 100 per cent occupancy district. The property has excellent with 24 tenants on long-term lease public transport links to the city center agreements. and will be completely refurbished. This will create a grade A office building that meets the latest international construction, health WestBridge and energy standards. Country: France Date of investment: June 2017 Date of exit: Oct. 2019

Ardian and LaSalle sold their Elisa interest in the WestBridge building in October 2019. Acquired in Country: Germany 2 Date of investment: May 2019 (signing) Aug. 2021 (closing) 2017, the 28,000m building is undergoing major renovation Ardian partnered with LBBW Immobilien Development GmbH to acquire the office that will deliver a grade A office project “3 Höfe Work” at Lützowstrasse 107-112 in central Berlin. The office complex property by the end of 2020. is under construction with completion set for the third quarter of 2021. It will have In May 2019, Ardian and LaSalle around 18,000m2 of rental space in one of Berlin’s most sought-after office locations. signed a 12-year lease with WPP, the global marketing and communications group.

102 103 OFFICES ARDIAN GROUP’S RISK APPETITE STATEMENT 2019 Europe Jersey Asia Third Floor Paris Beijing 27 Esplanade 20, place Vendôme Unit 20-22, Level 47, St. Helier 75001 Paris China World Tower A JE2 3QA JERSEY FRANCE No.1 Jian Guo Men Wai Luxembourg Avenue Chaoyang, District Beijing London 24, Avenue Emile-Reuter 100004, 1 Grafton Street L-2420 Luxembourg CHINA London, W1S 4FE LUXEMBOURG UNITED KINGDOM Tokyo Marunouchi Nijubashi Building 21F Frankfurt 3-2-3 Marunouchi, Chiyoda-ku, An der Welle 4 Americas Tokyo 100-0005, 60322 Frankfurt New York JAPAN GERMANY 1370 Avenue of the Americas Singapore Milan New York, NY 10019 1 Temasek Avenue Piazza San Fedele 2 USA Unit 20-02A Millenia Tower 20121 Milan San Francisco Singapore 039192 ITALY Suite 1400, SINGAPORE Madrid 14th floor, Steuart Tower Seoul Calle Fortuny 6 One Market Plaza 27F, West Center 5ª planta San Francisco, CA 94105 Ardian Group’s mission is “to invest responsibly and from diversification, via our different types of funds Center 1 Building 28010 Madrid USA sustainably in order to create lasting value, outstanding and the selected portfolio investments within them, 26 Euljiro 5-gil, Jung-gu SPAIN returns and shared outcomes for our investors and and from our ability to manage our assets flexibly Santiago Seoul 04539 partners, for our portfolio companies and their employees across unpredictable economic and financial cycles. Zurich Av. Apoquindo 2929, SOUTH KOREA and for our own people”. We have a conservative Bahnhofstrasse 20 Of. 1800, Piso 18 long-term approach to creating value that emphasizes We aim at all times to maintain prudent cash balances 8001 Zurich Las Condes, Santiago industrial growth and strategic or operational excellence and reserves to meet expected and unexpected demands SWITZERLAND CHILE over excessive leverage and financial engineering. and/or regulatory capital requirements in specific jurisdictions. Overall, we have a moderate appetite for risk. We operate in fast-moving and highly competitive We have a particularly low appetite for risks that could markets, but aim to do so in a prudent, considered threaten our reputation and we vigorously pursue the manner consistent with our mission and core values. monitoring and mitigation of these risks. We continually Our external investors are predominantly institutions assess our governance, our internal processes and and qualified professionals, meaning we have limited procedures, the conduct of our directors and employees, exposure to certain legal and regulatory risks. as well as our awareness of unavoidable exposure CREDITS This document contains information, including details of to the actions and activities of third parties, including investment performance, in regards to funds which are no At fund level, we avoid investment strategies that rely our fund administrators. longer open to new investors. Past performance is no guarantee of future performance. Valuations may rise and fall over time. on significant leverage or complex financial instruments. Investments in private equity funds are non-liquid, and there Our use of derivatives is restricted largely to hedging We accept operational risks associated with core IT Published by the Communications is no guarantee they can be sold at the value stated. This foreign-exchange and interest-rate exposures linked systems, with data privacy and cybersecurity and with Department of Ardian, May 2020 document does not constitute investment advice, an offer to sell, to the long-term nature of some fund cashflows. business continuity, but seek ways to mitigate these risks, 20, place Vendôme a solicitation of an offer to buy, or the basis for any contract Our funds operate within strict guidelines that set various including by making effective use of insurance. 75001 Paris, France for the purchase or sale of any investment. This document may not under any circumstances, replace the regulations or any diversification and other limits agreed with our investors. We are strongly committed to building and maintaining other legal documentation concerning the funds stipulated We accept the risks that come from our ability to identify a strong compliance and risk culture, in the belief that Content: in this document. Subscriptions to a private equity fund are and close transactions quickly because this is one of this will considerably reduce our overall risk exposure. The Investors Media Company Ltd. accepted only from investors that meet the conditions required our competitive advantages. As we expand into new Our people and all those with whom we transact are pursuant to the final version of the legal documentation for the asset classes and pursue new investment opportunities, vital to the good conduct of our business and we seek funds stipulated in the document. Any decision by investors Design & production: to invest in a private equity fund should be made only after we fully intend to maintain the discipline that has led at all times a proper combination of fairness, incentives they have conducted their own due diligence, investigation to our investment success. Wherever possible we will and vigilance. and consultations with their own legal, tax and accounting monitor our approach to ensure that we understand Printed on PEFC-certified paper from sustainable forests. advisers insofar as the latter may deem necessary to appraise key and emerging risk trends, such as the growing Ardian is a fast-growing company measured by assets the merits and risks involved in making such an investment, importance of digital technologies. under management, by client and staff numbers and and have formed their own opinion of the advisability and Photos: the consequences of such an investment. The term Ardian by geographical coverage. As we continue to expand, © Franck Juery © Thomas Laisné © Ardian © Adobe Stock mentioned in this document refers to one or several entities At Group level, we accept significant exposure to some of the risks we face are expected to evolve and © ILN © Daniel Rathmann © Guillaume Mirand © Gantner that constitute the Ardian Group, depending on the situation macro-economic risks related to the fact that most of our new risks will continue to appear. We are committed © Ardian Foundation © DRT © Celli © Choisy © Dedalus applicable. The portfolio companies’ financial data are issued products are spread across several regions and industrial to ensuring that we have the appropriate management by the companies. Throughout the document, in the absence of sectors. However, we believe that management of these and systems in place to manage these so that by © Nutripack © CCC © Ivalua © Uptoo © Rivalis © Soteria any indication to the contrary, figures are as of December 31st, Flexibles © Palacios © Lindfast Solutions Group © Alfred 2019 and the exchange rate applicable: €1 = $1.1198; interconnected risks is our essential core competency. embracing growth, we can achieve the next phase © EWE © ASTM © Syclef © PTSG © WestBridge €1 = £0.8537; $1 = £0.7623; €1 = CHF1.0874. We generate stable returns in part because we benefit of our strategic goals. 106 106