Apax Partners Sustainability Report

ReleasingpotentialsustainablyEdition 3

Apax Partners Contents

Chief Executives’ statement 02

Sustainable investing and portfolio monitoring 03

A global portfolio 06

Key highlights of initial progress 07 Environmental impact 08 Social impact 09 Governance 10 ESG performance overview – 2014 11

Case studies 13

Apax Foundation 15

Our values 17

Conclusion 18

Releasingpotentialsustainably

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Sustainable Value Creation

At Apax Partners we believe that sustainable investing is not only the right thing to do but should also have a powerful and measurable business logic.

The Firm adopted the Private Equity Council’s Guidelines for Responsible Investment in 2009 and became a signatory to the Principles for Responsible Investing in 2011. Over the course of the last four years Apax has developed a robust set of processes culminating in a comprehensive sustainability programme which is embedded in the lifecycle of a business in which Funds advised by Apax (“Apax Funds”) invest; from pre-investment due diligence to post investment value creation, monitoring and reporting.

Integrated Sustainable Investment Approach

Sustainable investing is vital to Apax Partners’ success and it has become an integral part of the investment team’s approach. Sustainability is embedded in our investment process, to help release the full potential of the Apax Funds’ portfolio companies. This means that issues relating to sustainability are raised in the early stages of any potential investment opportunity and are monitored throughout Apax’s stewardship of the company. Additionally the Firm’s sustainable investment activities have been embedded within the Operational Excellence Practice in 2014 providing a strong expertise base for Environmental, Social and Governance (“ESG”) related value creation projects.

Andrew Sillitoe Co-CEO, Apax Partners

Mitch Truwit Co-CEO, Apax Partners

Industry Leadership

As validation of the Firm’s commitment to responsible investment, Apax Partners was selected as the winner of the BVCA 2015 Responsible Investment Award both for its ESG Framework and for its Engagement on ESG matters with portfolio companies. In addition, for the last three years, the firm has received ESG leader status in the highly detailed RobecoSAM assessment programme.

Commitment to Transparency

A core tenet of the Apax Partners sustainability programme is the annual collection of more than 80 Environmental, Social and Governance related KPI’s from the Apax Funds’ underlying portfolio companies.

For Apax Partners the key goal of this project is to have visibility and relevant information in order to drive improvement of the ESG footprint of the overall Apax Funds portfolio. To create value through dedicated programmes at the individual portfolio company level. It also gives us the unique ability to meet the increasing demand from our investors and the broader stakeholder community for further and measurable transparency on the ESG profile of the Apax Funds portfolio.

We trust you will find this Sustainability Report compelling confirmation of our ongoing commitment to sustainable value creation.

Mitch Truwit Co-CEO, Apax Partners

Andrew Sillitoe Co-CEO, Apax Partners

Chief Executives’ statement

…sustainable investing is not only the right thing to do but should also have a powerful and measurable business logic.

Committed to delivering value sustainably

02 Apax Partners Sustainability Report

Sustainable investing... What we do

Incorporate ESG issues into investment analysis and decision-making processes

Promote acceptance and implementation of the principles within the investment community

Be active owners and incorporate ESG issues into ownership policies and practices

Seek appropriate disclosure on ESG issues by the entities in which we invest

Work together to enhance our effectiveness in implementing the Principles

Report on our activities and progress towards implementing the Principles

Apax Partners has a well-defined Corporate Responsibility policy which is guided by its fundamental values (Integrity, Stewardship, Community, People and Relationships).

Active ownership

Pre-investment activity focuses on the identification of ESG risks, the company’s ability to manage ESG considerations and its performance related to ESG in the past.

Pre-investment

Post investment the Apax Fund portfolio companies contribute to the Firm’s ESG processes by monitoring and reporting on key environmental, social and governance indicators through an innovative sustainability software system.

Post-investment

1 3 5

2 4 6

PRI Principles for Responsible Investment

Since adoption of the PRI Principles (see below), sustainability has been embedded in Apax’s investment process as a tool to help release the full potential of the businesses in which Apax Funds invest. This means that issues relating to sustainability are raised at an early stage in any potential investment opportunity and are monitored throughout Apax’s ownership of the company.

The Firm coordinates its sustainability efforts through a sustainability committee consisting of six members from different functions within the Firm. The committee meets on a monthly basis and reviews all matters relating to Apax’s internal and external sustainability related activities; the committee ensures that implementation of sustainability matters is achieved across the investment team, the Apax Fund portfolio and the Firm.

The Apax investment team undertakes standard pre-investment Environmental, Social and Governance (ESG) due diligence for each new investment made by the Apax Funds. The due diligence is based on a detailed questionnaire which has been drawn up to cover the ESG areas which Apax believes are key to understanding the ESG profile of the company in which the Apax Funds are considering an investment.

The outcome of the ESG due diligence review is presented to and reviewed by the Apax Investment Committee prior to each new commitment and areas of risk and opportunity are highlighted by the respective investment teams. The objective is to create a high degree of awareness upfront with regards to potentially relevant ESG issues which can contribute to value creation at a very early stage of ownership of the company.

The pre-investment due diligence is backed up post investment by an annual Environmental, Social and Governance KPI collection cycle. Through this Apax is able to capture the ESG footprint of the Funds’ portfolio companies and establish the possible areas of materiality which require further focus from the investment team to create value or mitigate risk.

For Apax Partners the key goal of this project is to get a better understanding of the materiality of certain KPI’s to the overall operations of a portfolio company. This helps the team to put in place value creation or risk mitigation initiatives in a far more focused manner in conjunction with the Apax Operational Excellence Practice to drive the value relevant to the particular material issues (such as natural resource efficiency programmes).

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Portfolio monitoring... How we do it

ESG KPI data collection

A key feature of the Apax Partners sustainability programme is an annual data collection cycle through which the Firm monitors, tracks and reports on the Environmental, Social and Governance performance of the Apax Fund portfolio companies.

The annual data collection cycle is designed to highlight each portfolio company’s performance in its key areas of risk and opportunity. A set of general key performance indicators (“KPIs”) across environmental, social and governance areas has been developed, which allows Apax to gather qualitative and quantitative data from its portfolio companies; in so doing, Apax is able to provide transparency on the portfolio’s ESG footprint to the Firm’s investor base. The software facilitates and streamlines the data capture of the KPI information and additionally functions as a central repository for ESG information and its related supporting documentation across the portfolio.

Each Apax Fund portfolio company is able to maintain, track and record its own ESG data over time. For Apax Partners, the key benefit of this project is that it affords significant visibility and relevant data capture which in turn drives improvement of the ESG footprint across the overall Apax Fund portfolio, as well as within each individual portfolio company; critically, the Firm is able to provide this information to LPs on an ongoing basis.

Apax Partners Sustainability Report

Releasingpotentialsustainably

Edition 3

Sustainability software system

In 2014 Apax achieved its target of having all eligible portfolio companies report non-financial KPI’s. As a result the Firm is a year ahead of the goal it set itself at the outset of the programme in 2012.

2014 Portfolio Participation

In total 26 Apax Funds’ portfolio companies contributed ESG KPI data, representing all the portfolio companies which were majority owned by the Funds, not public and not in exit planning at year end 2014.(1),(2),(3)

Throughout this report the group of companies which provided ESG KPI data is referred to as the Apax ESG Group. For this report the ESG group consists of: Acelity, Answers, Capio, Cole Haan, Epicor, Evry, Exact, Garda, Genex, GHG, Global Logic, iGate, New Look, One Call Care Management, Paradigm, Plantasjen, Psagot, Rhiag, Rue21, Sisal, Sophos, Takko, Tivit, TopRight Group, Trader Canada, and Unilabs. Exited from the ESG Group in 2014 are FarmaFactoring, Trizetto, AutoTrader and Orange Switzerland and new entrants in 2014 are Answers, Evry, Exact, Genex and Global Logic.

The Apax ESG Group generated approximately US$ 23.7 billion (€20bn) in global revenues in 2014 and employed more than 202,000 full time equivalent employees (FTE) globally. The scale of the combined operations of Apax Funds portfolio companies puts the Firm on a par with many of the world’s largest multi-national companies and necessitates a proactive focus on sustainability as a fundamental part of the Firm’s wider corporate responsibility.

(1) AutoTrader, FarmaFactoring were actively engaged in exit planning by year end 2014 (2) The ESG Group includes buyouts only(3) The Apax Funds hold minority stakes in several public companies which as a result are not included in the KPI

data collection programme

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Portfolio monitoring... How we drive value creation

Apax believes that its approach to obtaining ESG KPI data from the portfolio is innovative. Once established, the process is designed to be self-sustaining and self-governing on the part of the portfolio companies, allowing each to take full responsibility for their respective ESG policies.

An innovative approach...

In October 2015 Apax was selected as the winner of the BVCA 2015 Responsible Investment Awards both for its ESG Framework and for its Engagement on ESG matters with portfolio companies.

...leading to industry recognition...

The Apax Operational Excellence Practice (OEP) uses the ESG KPIs to analyse the materiality of certain ESG factors to value creation or risk mitigation in the portfolio.

...driving value creation

The firm sees the benefit of the ESG KPI data collection as three-fold:

– Providing transparency to Apax investors on the ESG footprint of the Apax Funds portfolio companies, thereby enabling them to communicate to their underlying clients more effectively and in a meaningful way on non-financial ESG matters.

– Enabling the Apax investment team to get a better understanding of the materiality of certain KPIs to the overall operations of a portfolio company, helping the team together with the Apax Operational Excellence Practice to put in place value creation or risk mitigation initiatives in a far more focused manner.

– Creating a solid foundation for continued awareness of the importance of an ESG focus in its day-to-day operations with each individual portfolio company, as the collection of non-financial metrics can be continued by each portfolio company post ownership by Apax Funds.

The judges commented that Apax’s strong and aspirational submission demonstrated how seriously the firm takes responsible investment. Responsible investment was found to be fully integrated throughout the company’s investment process with detailed questionnaires at entry to a portfolio firm as well as subsequent comprehensive action plans. The judges also remarked on the evident strong buy-in from Apax’s leadership and commended interesting nuances such as the firm’s cooperation with the Carbon Trust.

Apax also obtained ESG leader status from RobecoSAM and very positive feedback in the PRI assessment round for 2015. All of these accolades provide a strong validation of the Firm’s commitment to Responsible Investment.

Equipped with this insight the OEP then engages with those portfolio companies where there is a materially accretive outcome to implementing an improvement programme. Examples of ESG engagements supported by the OEP include:

Engaging in projects to reduce the costs and consumption of natural resources. The OEP has developed a preferred partnership relationship with The Carbon Trust, a UK based NGO. The Carbon Trust works with companies to reduce their carbon footprint, cut energy costs and gain a strategic competitive advantage. Going forward the Carbon Trust will be involved with those portfolio companies where there is a material impact expected from enhanced natural resource efficiency

Reducing risks through improved governance and policy implementation. The ESG KPI collection process also provides insight into corporate policies and governance practices. Based on our findings in the data collection, the OEP and Compliance group work together to address specific opportunities for enhanced policy implementation or risk management in areas like anti-corruption and anti-money laundering.

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*Buyouts only as at September 30, 2015

In this section:

North America

14Companies

$6,702mInvested cost

$12,314mRevenue

Rest of the World

8Companies

$2,732mInvested cost

$7,989mRevenue

Apax Funds have a globally diversified portfolio consisting of companies with headquarters across 15 countries with differing regulatory frameworks. Total capital invested globally at year end 2014 was USD 16 billion, in 39 companies, generating combined revenues of USD 34 billion*.

A global portfolio

Europe

17Companies

$6,577mInvested cost

$13,795mRevenue

Key highlights of initial progress 07Environmental impact 08Social impact 09Governance impact 10ESG performance overview – 2014 11

Key highlights of initial progress

Apax ESG Report

2012

2013

2014

80%

100%

830,000

623,000

166,000

202,000

80%

100%

36%

92% 607,000 168,000 96% 61%

74%

Portfolio company Reported CO2 tonnes eq. Code of ethics Diversity policyEmployees

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+20%Participation increased

-25%Reduction in CO2

+22%Increase in

reported employees

+20%Increase in code of ethics

+38%Increase in diversity policy

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Environmental Policy 32%

Waste Management Policy 42%

Initiatives to reduce water usage 44%

Initiatives to reduce paper/packaging 62%

Initiatives to reduce energy usage 84%

Compliance with all local environmental regulations 92%No serious environmental incidents LTM 100%

of the Apax Funds portfolioEnvironmental impact

Examples of environmental initiatives

Energy875m Kwh of electricity usage reported by 20 companies

Sophos replaced its entire Data Centre cooling system with four new air handlers and eight roof mounted condenser units plus a new fire suppression system. The company also installed equipment that automatically manages energy e.g. frequency converter controlled motor drives for pumps and motion sensor lighting in the majority of buildings.

Global Logic has developed a number of initiatives to promote energy efficiency: setting the temperature of the HVAC systems installed in Data Centres/Hub Rooms/Server rooms as per actual heating load and ambient conditions; procuring and using energy efficient electric appliances; switching off all electrical appliances whenever they are observed as not operational. As a result of these energy reduction activities electricity usage was reduced by 5% on a month by month basis in a number of the Global Logic offices.

Epicor has been implementing energy efficiency measures such as installing a replacement chiller in its Bracknell facility which is more energy efficient and putting in place additional video conferencing capacity, closing office space and developing a remote work force. In addition it has been fostering an employee engagement pilot programme in Monterrey, Mexico encouraging employees to use less electricity and encourage green behaviour in general.

Paper20,068 tons of paper purchased by 19 companies

Exact has as one of its goals to lower the use of paper within and beyond the boundaries of the company. The following paper usage reduction programs are in place at Exact:– Follow-me system printers worldwide

delivering substantial reduction of paper use internally;

– Electronic invoicing to all its customers, suppliers etc. (nearly 370 thousand electronic invoices / 90% of all invoices)

– To support customers and suppliers to be more sustainable and to create a reduction in paper usage the company started rolling out an electronic invoicing project. Its software enables reduction of paper usage and helps customers to enhance their sustainability profile.

Rhiag runs projects regarding the return of packaging material, for example in Italy, carton pallets & carton supports’ return (to be re-used) reached 65%. The company has double sided printing in place and is decreasing invoices and copies, in addition its purchases of recycled paper increased, especially in Italy and Auto Kelly CZ..

16 companies account for 15% of CO2 emissions

7 portfolio companies account for 85% of CO2 emissions

Examples of environmental KPIs

As per the previous year there were no serious environmental incidents reported across the 2014 ESG Group. The ESG Group also reported almost full compliance with all local environmental regulations in 2014 with 2 companies implementing improvement programmes to resolve a non-material legacy issue.

Resources usage The Apax investment sectors are not focused on heavy industries but predominantly on services, retail, technology and digital businesses.

The Apax Fund portfolio consists of a large number of “asset light” businesses which do not have a significant environmental impact. The majority of the resource usage is reported by a small number of companies. In 2014 85% of CO2 emissions were generated by only 7 portfolio companies. And of these 2 have been sold in H1 2015 thereby reducing the CO2 footprint of the portfolio by 27%.

On a like for like basis (excluding the two recently exited portfolio companies) there has been a decrease of 31,222 tons eq. across a core group of 15 companies, mainly due to the fact that several portfolio companies were more comprehensive in their energy data capture in 2014 than 2013.

What is the company’s current energy consumption?

Are there initiatives in place to reduce the energy footprint?

Does the company have an environmental policy?

What are the targets for the next 12 months?

623,000tons equivalent of CO2

were reported by 23 companies

Breakdown of CO2 emissions

Across the Apax Funds’ portfolio, we have a high number of initiatives in place that reduce complexity, waste and energy consumption. These initiatives range from: reducing electricity usage via replacing traditional light bulbs to led, reducing paper usage by setting default double sided printing in all of the offices and reducing water usage by investing in low flow fixtures, auto shut off faucets and other water reducing features.

The Apax Funds’ portfolio is focused on reducing its global environmental impact – with over 84% of portfolio companies reporting in 2014 that they have energy reduction initiatives in place versus 67% in 2013.

The portfolio’s environmental stewardship initiatives will help protect the planet while improving efficiency, reducing costs and preserving their ability to do business in the future. Sustainability is not just the right thing to do, it can also boost innovation and profitable growth. This is why Apax clearly sees it as a key differentiator and a competitive advantage.

Environmental data overview

Apax Partners Sustainability Report08

Data representative of year ended 31.12.2014

Workforce diversity and trainingCapio Psychiatry developed a project called “Releasing time to care” during 2014. The project concerns inpatient care and originates from a lean-based method developed by the NHS in the UK specifically for psychiatric in-patient care. The project includes 12 modules and the time spent on different elements is measured, identifying such factors as stress parameters. As a result the staff feel that they can influence their own working environment and amongst other things, the project gives clear work descriptions, which besides streamlining the Capio processes also reduces stress for the employees. During 2014 Capio Psychiatry also introduced and provided training on AED (automated external defibrillator) and improved the follow-up of employee and patient surveys.

TIVIT launched new training programs, entered into partnerships with schools for people development, and focused on reduction of travel time from home to work.

Takko implemented various initiatives internally based on the employee commitment initiative “Great Place To Work”. These initiatives included amongst others an annual appraisal for corporate employees, the development of a new training curriculum and the launch of an employee benefit portal for all employees.

Community engagementrue21 launched and improved “people friendly” initiatives such as Imprueve to promote the health and wellness of its associates, which included a tobacco cessation program, and People First to promote recognition and positivity to create a better work environment. The business formed a safety committee with monthly meetings, launched safety initiatives and improved its communications, thereby ultimately lowering workers compensation and customer accident costs. The company also founded “rueGivesback” to promote philanthropy in 2015, and it has a dedicated budget of $100K.

A core strength of Top Right Group employees is their commitment and passion for the communities they live in and serve. They want to make a real difference to the world around them - not just for customers through their great products but for those who are less fortunate or are not able to help themselves.

2014 was the company’s first year of supporting the world renowned Great Ormond Street Hospital (GOSH) by funding a changing faces pr action. Through employee involvement and hard work by GOSH ambassadors in the business, TRG soared through its £85,000 fundraising target to raise over £91,000. In 2012, the Group became a Patron of The Prince’s Trust. Employees have continued to give their time to help disadvantaged young people get a better start and have fundraised as part of The Prince’s Trust Million Makers. At the end of their first year, 2013, TRG had raised over £30,000. In 2014, TRG raised more than double that amount, which was recognised by the Trust as the highest achievement against target at the Trust’s Awards. The teams are seeking to raise the bar even higher in 2015.

Does the company have a health and safety policy?

Level of voluntary turnover and redundancies?

Social impact summaryThe ESG Group workforce grew by more than 20% in 2014 and stood at 202,000 FTE’s at 31.12.2014. FTE growth across companies reporting in 2013 and 2014 was 12.8% or 20,300 FTE’s from a core group of 21 companies; 5 new companies in the portfolio brought an additional 23,319 FTE’s to the ESG Group total.

The Apax ESG Group contains a number of very large employers. Three companies each employ over 30,000 FTE’s and 6 companies combined account for over 65% of the overall ESG Group workforce with the remaining 35% of the workforce employed by 20 other portfolio companies.

For 2014, 100% of Apax portfolio companies reported that they complied with local labour regulations.

Employee Health and Well Being

Days lost due to illness is tracked by a large proportion of the ESG Group. In 2014, 21 out of 26 companies in the ESG Group provided this information, or over 80% of the respondents. This is up from 15 companies or 60% in 2013. Across the 21 companies on average 3.5 days were lost per FTE to illness similar to 2013. Roughly 40,000 individuals chose a voluntary exit and there were 12,500 redundancies or 6.1% of total FTE’s at year end 2014.

Health and Safety

In terms of health and safety, 21 of the Apax ESG group portfolio companies reported having a Health & Safety policy in place. There were 6,100 work related accidents reported across the ESG Group and only one company reported a fine for health and/or safety non-compliance, relating to some issues with regard to an Occupational Health Certificate, the certificate has already been fixed and the penalty appealed.

Examples of social KPIs

What is the profile of the workforce?

Is there employee representation?

6 companies account for over 65% of employees

Across the ESG group a number of companies have put in place initiatives to improve their and their employees’ social position by improved training programmes, performance management systems and improved career development practices.

Breakdown of employees

20 companies account for 35% of employees

1 32 44

6,100 work related accidents3.5 sick days per FTE / year

Examples of social impact initiatives

49.5% female 50.5% male

202,000full time employees

(FTEs) in the Apax ESG Group in 2014

Gender balanceIn contrast to 2013, the ESG Group workforce by year end 2014 was split 49.5%% female and 50.5% male (from 55% female in 2013). On a like for like basis there was a 7% increase in female employees and a 19% increase in male employees relative to year end 2013. This is mainly due to a large increase in male employees at Canadian portfolio company Garda as a result of an acquisition.

There was an increase in companies reporting to have a diversity policy in place, to 74% or 14 companies up from 61% and workers councils are active at 15 portfolio companies up from 11 in 2013.

workforce diversity and traning workforce diversity and traning

of the Apax Funds portfolioSocial impact

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Data representative of year ended 31.12.2014

Psagot received an annual award for its financial education activities - “the best marketing move of the year” In addition, Psagot received a maximum platinum rank from Ma’ala for the 6th time running. Ma’ala – Business for Social Responsibility- is Israel’s leading advocate for corporate social responsibility (CSR) and good corporate citizenship. Companies are judged based on their performance in six major areas: environment, business ethics, human rights and work environment, community involvement, corporate governance and social and environmental reporting. The Index, which has been produced annually since 2003, is prepared in partnership with McKinsey & Company, Ernst & Young, S&P Maalot, the Tel Aviv Stock Exchange and Greeneye.

Sisal received Responsible Gaming Certification by the European Lotteries (EL) – and the WLA - World Lottery Association (level 4) in February 2014.

Evry was included in the Climate Performance Leadership Index in 2014 by the Carbon Disclosure Project (CDP).

The main Top Right Group offices have achieved a BREEAM ‘Excellent’ Rating. The building was recognised with an Urban Sustainability Award in 2014. A bio-diverse living roof providing a foraging habitat for invertebrates and birds is incorporated into the design of the Top Right Group London building. The design aim is to reduce the carbon footprint of this building by 73% compared to a comparable building as it would have been built in 2002. A rainwater reclamation system operates within the building serving the toilets and low temperature hot water has been installed. The roof structure is designed to maximise natural light and ventilated to limit heat build-up in the summer and provide low temperature protection in the winter.

Public recognition A number of the Apax portfolio companies received public recognition for their activities and focus on corporate citizenship:

Enhanced policies and guidelines in 2014...Capio decided to share information about Capio’s newly adopted policies for anti-bribery and anti-corruption as well as whistle-blower function routines with all employees. The information was summarized in a leaflet “What we aim for – and if it does not work”. In this brochure information about what Capio aims for in terms of business ethics and the policies adopted to strengthen the work to uphold high standards for openness, honesty and accountability in every day work are described. The information was sent out jointly by Capio’s CEO and the Chairman of the Capio European Workers Council (EWC). The information was distributed to all employees across the Capio Group in their native language in 2014 (Swedish, French, German and English).

Psagot continued to develop its institutional involvement activities and has obtained several achievements, including the implementation of some of its recommendations in the conclusions of the Endorn Committee for debt settlements. In addition, Psagot established Psagot’s center for financial education and is performing a series of activities in order to raise financial awareness in the public. Epicor rolled out a worldwide compliance training initiative and hired a Chief Security Officer/CIO.

What is the anti-corruption practice of the company?

(e.g. Policies, training, procedures, whistle blowing hotlines)

Are there supply chain due diligence policies in place?

Does the company have appropriate ethical conduct codes of practice?

What is the composition of the Board of Directors? (e.g. How many independents?)

Governance summaryAt Apax we realise that good corporate governance is the foundation of effective corporate management. For us, corporate governance means the application of international and national values and principles of responsible and transparent company management and control that are geared towards sustainable added value. We target full compliance with the laws and regulations of each country in which we operate, as well as with international standards. It is the necessary condition for our engagement with society. We are convinced that good corporate governance strengthens the trust placed in Apax Funds’ portfolio companies by their business

partners and employees and also by Apax Funds institutional investors. Robust corporate governance systems are in place across the Apax ESG group. Virtually all companies have a code of conduct and/or a code of ethics which guides their business activities. All companies have anti-corruption/anti-competition processes in place which are monitored regularly. Portfolio companies that are new to Apax Funds’ or which have historically had less focus on governance are actively encouraged to adopt appropriate codes and processes.

Examples of governance KPIs Examples of corporate governance initiatives

Overview of compliance and policies

Compliance with all materially relevant local labour regulations 100%

Not target of investigation relating to anti-corruption laws LTM 100%

No serious environmental incidents 100%

No fines paid for health & safety noncompliance LTM 96%

Compliance with all local environmental regulations 92%

Anti-corruption protections included in 3rd party contracts 90%

Monitoring of compliance with compliance policies and procedures 85%

Sub-contractors adherence to anti-corription policies 38%

Compliance

Improved governance and policy implementation

Each year a number of new companies which do not have an appropriate governance or risk management structure in place are added to the portfolio. The OEP and the Compliance Group work together to address specific opportunities for enhanced policy implementation or risk management in areas like anti- corruption and money laundering for these companies and also for the broader portfolio.

Code of conduct/ethics201420132012

100%96%90%

Diversity policy201420132012

74%61%36%

Exec committeemember incharge of CSR201420132012

38%44%27%

Wastemanagementpolicy201420132012

32%41%29%

Published a CSR Report201420132012

24%28%27%

CorporateGovernancePolicy201420132012

52%60%59%

Environmentalpolicy201420132012

42%42%36%

Anti corruption/Anti competition policies201420132012

92%92%86%

Health and Safetypolicy201420132012

81%83%77%

Anti-corruptionDuring the year, no public allegations of corruption were made against any of Apax Funds portfolio companies or their employees.

of the Apax Funds portfolioGovernance

Apax Partners Sustainability Report10

Data representative of year ended 31.12.2014

(1) Only those portfolio companies which participated in the KPI collection exercise are featured in the performance data overview(2) Employees are reported in FTE’s but sick days and voluntary turnover in some instances are reported in total employees(3) Company A and Company K adopted anti-corruption policies in 2015

Environmental Social(2) Governance

2014 ESG performance data:(1) by Sector

Company Sub-sector

CO2 emissions

(tons)Electricity

(Kwh)

Business Travel by Air

(Miles)

Water used (m3)

Waste treated

(tons)Serious incidents

Employees FTEs

Women %

Men %

Diversity policy Sick days

Voluntary turnover

Workers Council

Code of conduct

Anti-corruption

policyCSR

Report

ConsumerCompany A Digital 388 – 2,000,000 – – No 620 43% 57% Yes – 60 No Yes No No

Company B Retail 64,381 117,616,445 5,722,326 72,360 5,020 No 7,408 78% 22% Yes 61,370 – Yes Yes Yes Yes

Company C Retail 5,089 – 1,860,036 500,459 7,629 No 1,206 70% 28% No 20,753 51 Yes Yes Yes No

Company D Gaming 12,766 20,264,000 2,304,666 27,117 41 No 1,779 41% 59% No 12,604 61 Yes Yes Yes Yes

Company E Retail 53,066 101,942,161 1,356,302 106,370 658 No 8,703 93% 7% No 50,557 873 No Yes Yes Yes

Company F Publishing 1,847 1,880 8,664,565 – 79 No 1,713 58% 42% Yes – 446 No Yes Yes No

Company G Retail 6,167 10,055,697 – 5 – No 1,984 57% 43% Yes 70 1,250 Yes Yes Yes No

Company H Retail 54,270 89,363,603 1,410,000 – – No 9,001 79% 21% Yes 2,294 5,825 No Yes Yes No

HealthcareCompany I Medical Products 47,584 44,625,862 35,414,840 102,860 1,308 No 5,555 51% 49% Yes 9,779 730 Yes Yes Yes No

Company J Hospitals – – – – – No 12,357 82% 18% Yes – – Yes Yes Yes No

Company K HC Services 657 – 3,379,858 – – No 2,541 86% 14% Yes 5,439 459 No Yes No No

Company L Hospitals 49,176 58,693,078 1,016,028 452,646 3,230 No 7,775 77% 23% Yes 60,232 1,173 Yes Yes Yes No

Company M HC Services 906 821,055 – 1,100 – No 2,419 73% 27% Yes 1,418 248 No Yes Yes No

Company N HC Services – – – – – No 4,155 78% 22% Yes 29,368 343 No Yes Yes No

ServicesCompany O Business Services 154,880 128,200,000 46,292,154 – – No 36,918 25% 74% Yes 2,843 3,415 Yes Yes Yes –

Company P Business Services 19,975 13,888,365 852,890 54,031 3,995 No 3,370 17% 83% No 14,252 172 Yes Yes Yes No

Company Q Financial Services 3,163 2,380,000 3,728 – 12 No 803 47% 53% Yes 6,394 152 No Yes Yes Yes

Company R Online 387 – 1,959,647 – 13 No 602 39% 61% No 1,746 102 Yes Yes Yes No

Tech & TelecomCompany S Software 14,326 7,980,378 43,918,261 25 593 No 4,516 35% 65% No 98 442 No Yes Yes No

Company T IT Services 3,389 98,662,844 7,862,461 – – No 10,161 24% 76% No 47,226 1,074 Yes Yes Yes Yes

Company U Software 5,599 3,553,177 5,681,573 – – No 1,468 36% 64% Yes 5,966 171 Yes Yes Yes Yes

Company V IT Services 4,808 16,749,424 19,349,660 447,271 – No 8,529 31% 69% Yes 33,771 1,445 No Yes Yes No

Company W IT Services 104,624 69,201,120 71,832,806 631,162 – No 32,619 27% 73% Yes – 5,356 No Yes Yes No

Company X Software – – – – – No 702 32% 68% Yes – 69 Yes Yes Yes No

Company Y Software 2,890 3,970,455 2,648,423 4,963 25 No 2,385 21% 80% Yes 1,311 307 Yes Yes Yes No

Company Z IT Outsourcing 12,570 87,514,605 5,347,860 299,931 20 No 33,075 66% 34% Yes 178,868 16,322 Yes Yes Yes No

Apax Partners Sustainability Report11

Data representative of year ended 31.12.2014

(1) Only those portfolio companies which participated in the KPI collection exercise and AEVII Company F are featured in the performance data overview(2) Employees are reported in FTE’s but sick days and voluntary turnover in some instances are reported in total employees(3) AVIII Company A and Company D and AEVIII Company F adopted anti-corruption policies in 2015

2014 ESG performance data:(1) by Fund

Company Sub-sector

CO2 emissions

(tons)Electricity

(Kwh)

Business Travel by Air

(Miles)

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Waste treated

(tons)Serious

incidentsEmployees

FTEsWomen

%Men

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policySick days

(FTEs)Voluntary

turnoverWorkers Council

Code of conduct

Anti-corruption

policyCSR

Report

Apax Europe V and VICompany A Consumer 64,381 117,616,445 5,722,326 72,360 5,020 No 7,408 78% 22% Yes 61,370 – Yes Yes Yes Yes

Company B Consumer 12,766 20,264,000 2,304,666 27,117 41 No 1,779 41% 59% No 12,604 61 Yes Yes Yes Yes

Company C Healthcare – – – – – No 12,357 82% 18% Yes – – Yes Yes Yes No

Company D Healthcare 49,176 58,693,078 1,016,028 452,646 3,230 No 7,775 77% 23% Yes 60,232 1,173 Yes Yes Yes No

Company E Healthcare – – – – – No 4,155 78% 22% Yes 29,368 343 No Yes Yes No

Company F Services 387 – 1,959,647 – 13 No 602 39% 61% No 1,746 102 Yes Yes Yes No

Company G Tech & Telecom 14,326 7,980,378 43,918,261 25 593 No 4,516 35% 65% No 98 442 No Yes Yes No

Company H Tech & Telecom 104,624 69,201,120 71,832,806 631,162 – No 32,619 27% 73% Yes – 5,356 No Yes Yes No

Company I Tech & Telecom 2,890 3,970,455 2,648,423 4,963 25 No 2,385 21% 80% Yes 1,311 307 Yes Yes Yes No

Company J Tech & Telecom 12,570 87,514,605 5,347,860 299,931 20 No 33,075 66% 34% Yes 178,868 16,322 Yes Yes Yes No

Apax Europe VIICompany A Consumer 5,089 – 1,860,036 500,459 7,629 No 1,206 70% 28% No 20,753 51 Yes Yes Yes No

Company B Consumer 53,066 101,942,161 1,356,302 106,370 658 No 8,703 93% 7% No 50,557 873 No Yes Yes Yes

Company C Consumer 1,847 1,880 8,664,565 – 79 No 1,713 58% 42% Yes – 446 No Yes Yes No

Company D Healthcare 47,584 44,625,862 35,414,840 102,860 1,308 No 5,555 51% 49% Yes 9,779 730 Yes Yes Yes No

Company E Healthcare 906 821,055 – 1,100 – No 2,419 73% 27% Yes 1,418 248 No Yes Yes No

Company F Healthcare 657 – 3,379,858 – – No 2,541 86% 14% Yes 5,439 459 No Yes No No

Company G Services 3,163 2,380,000 3,728 – 12 No 803 47% 53% Yes 6,394 152 No Yes Yes Yes

Company H Services 387 – 1,959,647 – 13 No 602 39% 61% No 1,746 102 Yes Yes Yes No

Company I Services 19,975 13,888,365 852,890 54,031 3,995 No 3,370 17% 83% No 14,252 172 Yes Yes Yes No

Company J Tech & Telecom 14,326 7,980,378 43,918,261 25 593 No 4,516 35% 65% No 98 442 No Yes Yes No

Company K Tech & Telecom 104,624 69,201,120 71,832,806 631,162 – No 32,619 27% 73% Yes – 5,356 No Yes Yes No

Company L Tech & Telecom – – – – – No 702 32% 68% Yes – 69 Yes Yes Yes No

Company M Tech & Telecom 2,890 3,970,455 2,648,423 4,963 25 No 2,385 21% 80% Yes 1,311 307 Yes Yes Yes No

Company N Tech & Telecom 12,570 87,514,605 5,347,860 299,931 20 No 33,075 66% 34% Yes 178,868 16,322 Yes Yes Yes No

Apax VIIICompany A Consumer 388 – 2,000,000 – – No 620 43% 57% Yes – 60 No Yes No No

Company B Consumer 6,167 10,055,697 – 5 – No 1,984 57% 43% Yes 70 1,250 Yes Yes Yes No

Company C Consumer 54,270 89,363,603 1,410,000 – – No 9,001 79% 21% Yes 2,294 5,825 No Yes Yes No

Company D Healthcare 657 – 3,379,858 – – No 2,541 86% 14% Yes 5,439 459 No Yes No No

Company E Healthcare 906 821,055 – 1,100 – No 2,419 73% 27% Yes 1,418 248 No Yes Yes No

Company F Services 154,880 128,200,000 46,292,154 – – No 36,918 25% 74% Yes 2,843 3,415 Yes Yes Yes No

Company G Services 19,975 13,888,365 852,890 54,031 3,995 No 3,370 17% 83% No 14,252 172 Yes Yes Yes No

Company H Tech & Telecom 3,389 98,662,844 7,862,461 – – No 10,161 24% 76% No 47,226 1,074 Yes Yes Yes Yes

Company I Tech & Telecom 5,599 3,553,177 5,681,573 – – No 1,468 36% 64% Yes 5,966 171 Yes Yes Yes Yes

Company J Tech & Telecom 4,808 16,749,424 19,349,660 447,271 – No 8,529 31% 69% Yes 33,771 1,445 No Yes Yes No

Environmental Social(2) Governance

Apax Partners Sustainability Report12

Data representative of year ended 31.12.2014

Case study

Overview

In 2015 the Apax Operational Excellence Practice developed a preferred partnership relationship with The Carbon Trust. The objective of the partnership is to establish a highly experienced and well recognised resource for the Apax Funds’ portfolio companies who will work with the portfolio on the formation of bespoke natural resource efficiency programmes.

The Carbon Trust

The Carbon Trust works with companies to help reduce their carbon footprint, cut energy costs and gain a strategic competitive advantage. They identify the business case for putting sustainability at the heart of an organisation and demonstrate how this delivers shareholder value. Apax Partners selected the Carbon Trust for their focus on value creation through energy efficiency and their clear expertise in this field working with many public companies in the same sectors as the Apax Funds portfolio companies. Going forward the Carbon Trust will be involved with those portfolio companies where there is a material impact expected from enhanced resource efficiency.

Exact

Exact is a leading vendor of on-premise and cloud based accounting and ERP software and services for small and medium sized businesses. Exact’s software solutions are considered mission critical to its customers overall IT infrastructure, integrating within and managing the flow of information across core business functions and operations. Headquartered in Delft, the Netherlands, Exact serves over 250,000 companies in more than 100 countries around the world.

Exact has stated as its goal to significantly reduce its carbon footprint. Exact already has a number of existing initiatives in place such as getting to a zero emission car fleet in the Netherlands and paper reduction through e-invoicing and leveraging its own software solutions. Exact was the first portfolio company to have worked with the Carbon Trust to develop a baseline for its electricity usage at the start of the Apax Funds investment in 2015.

Natural Resource Efficiency Analysis

Through working with the Carbon Trust, the company was able to establish a detailed insight into its organisational carbon footprint, and identify areas for cost savings and demand reduction. Amongst these were recommendations with regard to existing operations such as improving building systems, staff engagement, and sustainability governance; as well as approaches for embedding best practice into future expansion.

On the basis of the initial work done with the Carbon Trust, Exact will aim to improve measurement and monitoring of energy in the Netherlands premises and assess efficiency opportunities within its headquarters and largest offices. In addition, it will look at commuting alternatives and the launching of a company wide “green plan” to further employee engagement. Exact is expecting to do further work with the Carbon Trust in 2016 and 2017 to build on the analysis done and to develop a firm wide approach to its energy efficiency strategy.

Apax Partners Sustainability Report13

Case study

Overview

Apax Partners completed their investment in RFS Holland Holding (also known as the Wehkamp Group) in September 2015. Wehkamp.nl has grown rapidly in recent years to become the largest online lifestyle shop of the Netherlands. The company has 1.7 million regular customers, over 145 million visitors per year and more than 7 million shipments annually and as such is one of the largest online retailers in the Netherlands. The company’s range consists of over 180,000 items and about 90% of all Dutch households are customers at Wehkamp.Highly Sophisticated Automated Distribution Center

One of the components of the investment thesis is the highly automated distribution center designed to meet the growing demand for the company’s products. With an area of 53.000m2 and space for 4 million products, Wehkamp has the largest automated e-commerce distribution center in the world. Within 30 minutes after placing an order a package is ready for shipment. As a result customers will be able to have their products delivered on the same day to any location in the Netherlands providing an unparalleled e-commerce experience.

State of the Art Sustainability Features

The new distribution center has a BREEAM “Excellent” certification for sustainability and consists of advanced logistics and other highly innovative energy efficiency features. For example, the conveyors operate according to smart start and stop systems and the lifts carrying the packages on their logistics journey through the distribution center create their own energy when in use through the braking mechanism when descending. The building has been fitted out with energy efficient lighting with smart circuitry on the basis of daylight and presence detection and high-quality, energy-efficient HVAC systems with high user comfort and low energy consumption.

In addition there are grey water/water-saving measures to all sanitary facilities in place and the center utilizes a heat and cold storage facility which is laid out in an ecological garden. Approximately €100 million has been invested in the distribution center which was opened in September 2015 by the King of the Netherlands.

Solar Energy Powering Online Retail

A unique feature of the distribution center is its roof which consists of 10,000 solar panels covering over 30,000 m2, making it the largest rooftop solar field in the Netherlands. The solar field generates 2,250 MWh annually (equal to the annual energy usage of over 700 Dutch families) and at present it provides over 80% of the distribution center’s energy requirement. It is expected that when the center is running at full capacity this solar field will provide at least 30 – 40 % of the distribution center’s overall energy requirement thereby making a significant contribution to a reduced CO2 footprint of its handling activities.

Apax Partners Sustainability Report14

The Apax Foundation is the channel for Apax Partners’ corporate giving globally and has made donations averaging over £1 million a year since its inception in 2006.

Social entrepreneurship was chosen as the focus for the Apax Foundation’s major grant giving as it is the natural extension of what Apax does commercially and builds on the Firm’s history of support in that area, most notably as one of the founders of Bridges Ventures. It is also an area where some of the Foundation’s Trustees have significant experience. This provides us with a steady flow of introductions to leading charities in the field, both from within the firm and from our wider network.

The Foundation has also continued its commitment to our staff ‘matching’ scheme and the private equity community’s collective charity, Impetus – The Private Equity Foundation.

Social entrepreneurship

Social entrepreneurship is the main focus of the Apax Foundation’s charitable giving. We support a range of charities, large and small, working to help people in deprived communities to lift themselves out of poverty through enterprise. The Apax Foundation has made total cumulative donations of £4.3 million to charities working in this field.

Apax staff ‘matching’ scheme

Our matching scheme is designed to encourage and support our team’s personal involvement with charities close to their hearts. The Apax Foundation has made total cumulative donations of over £1.7 million to charities to which members of the Apax team have given their time and skills.

Impetus – The Private Equity Foundation

Impetus – PEF accelerates the growth of innovative charities and social enterprises helping disadvantaged children and young people to get the start in life they deserve.

Social investments

A proportion of the Foundation’s invested endowment fund is allocated to social investments - in other words, investments that generate a positive social impact as well as a financial return. The most significant of these is Finance in Motion, whose mandates include the European Fund for Southeast Europe (EFSE) and the Green for Growth Fund Southeast Europe.

Trustees of The FoundationThe Apax Foundation is chaired by Sir Ronald Cohen and its Trustees include:

Simon CresswellPartner, General Counsel Apax Partners

Peter EnglanderCEO of the Apax Foundation

Rohan HaldeaPartner, Apax Partners

Martin HalusaChairman, Apax Partners

David MarksSenior Taxation Advisor, Apax Partners

John MegrueChairman, Apax Partners U.S.

Michael PhillipsFormer Partner, Apax Partners

Shashank SinghPartner, Apax Partners

Mitch TruwitCo CEO, Apax Partners

Striving to make a positive contributionApax Foundation

Apax Partners Sustainability Report15

Dasra India

Dasra is an NGO in India focussed on capacity building in the social sector. It helps high potential social enterprises (non-profits and social businesses) scale up to move people in India out of poverty faster. The organisation brings together networks, knowledge and funding to catalyse large scale social change. An example is Magic Bus, Dasra’s first investment, whose budget went from $0.025m to $9.2m between 2000 and 2014.

Emmaus UK

Emmaus is an international movement which creates communities for the homeless, offering them a home, work and the chance to rebuild their lives in a supportive family environment. The communities aim to be self-sustaining through their on-site enterprises, such as restoring and re-selling used furniture and electrical goods.

Charity Period Country

Grameen America North America

Grameen America is a not-for-profit microfinance organisation founded by Nobel Laureate Prof. Muhammad Yunus, providing small loans to people of limited means in the US to enable them to start up their own small businesses. The Grameen concept, which specifically aims to help the poorest, is new to the U.S. and the Apax Foundation was one of its early backers.

Joblinge Germany

Joblinge works to reduce youth unemployment in Germany through a 6-month programme targeting unemployed high school leavers. Joblinge targets the most challenging cases, who have already been through government training schemes without success. Its programme consists of training, intense mentoring, internships and ongoing coaching throughout the participants’ apprenticeship, with a job placement as the final aim. The programme has proved 4-6 times more effective than comparable government schemes.

Apax Foundation continued

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

Social entrepreneurship examples

Social entrepreneurship

Dasra 3 years India

Emmaus 3 years initially followed by 2-year re-commitment UK

Grameen America 3 years initially followed by 3-year re-commitment US

Joblinge 1 year initially followed by 2-3-year re-commitment Further 3-year re-commitment likely Germany

Mosaic 3 years initially followed by rolling 4-year re-commitment UK

Non-Profit Incubator/ Xingeng Workshop 3 years China

Opportunity Network 3 years US

Prince’s Trust 2 years initially followed by successive re-commitments UK

Schwab Foundation 3 years EU

Social Finance 2 years initially followed 2-year re-commitment UK

Apax Partners Sustainability Report16

Values across the Apax Funds portfolio

Portfolio companies are encouraged to lead in corporate social responsibility, because we believe that sustainably run businesses ultimately help drive better returns for our investors.

We are proud of what we do: backing management to release the full potential of their businesses through insight and patient long-term investment. We remain aware of our responsibilities at all times, and are guided by our values.

Shaping our industry’s values

We are committed to working with the industry on corporate responsibility issues including environmental, social and governance best practice, as well as raising the standard of transparency and disclosure to all our stakeholders. As such, we were engaged from the earliest stages in the development of the Walker Guidelines on Transparency and Disclosure in the UK, and are involved with industry associations in  other countries in their creation of similar codes.

We are proud signatories of the UN’s Principles for Responsible Investment (PRI) and to the Private Equity Growth Capital Council’s Guidelines for Responsible Investment.

See the UNPRI website for full details at www.unpri.org

See the Private Equity Growth Capital Council website for the full list at www.pegcc.org

Our values are built on five key pillars

Integrity Apply the highest standards of integrity in dealings with all stakeholders.

Stewardship Act in the long-term interests of the environment and the companies in which our funds invest.

Community Act with respect and consideration for the communities in which we operate.

Relationships Create long-term relationships founded on mutual advantage.

People Treat people with dignity and respect. Do not discriminate on any grounds.

Overview

Private equity is a long-term business, and depends on the trust it receives from investors, business owners and management teams. Our values are crucial in everything we do.

We apply our values equally wherever we operate. They inform our interactions with employees, suppliers and our local communities, as well as the Apax Funds’ investors and portfolio companies. Apax Funds do not invest in companies involved in firearms, pornography or that derive significant revenues from the production or sale of tobacco.

Our shared investment valuesOur values

Apax Partners Sustainability Report17

The annual ESG KPI collection from Apax Funds’ portfolio companies is now firmly embedded in the Apax Partners sustainable investment framework, with all majority owned portfolio companies participating and contributing data.

The next step in our journey is to work with those companies which are the largest users of natural resources to help reduce their footprint through cost and demand reduction initiatives. We look forward to keeping you informed of our progress.

Find out more at www.apax.com/responsibility

Sustainability reporting across the Apax Partners portfolio

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INDEPENDENT HOSPITAL CARE

Serious about health. Passionate about care.

ANNUAL REPORT 2012-13

20 MILLION PATIENTS1 ALL TREATED EXACTLY THE SAME WAY – UNIQUELY

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Our work is your free timeOur work is your free time Sisal Corporate SocialResponsibility Report

2013

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What we aim for– and if it does not work

An information from Capio’s European Works Council (EWC)

Corporate Social Responsibility Report | 2012In 2012 Exact’s CSR reporting was integrated into the Annual Report 2012. This “CSR Report 2012” has been extracted in its entirety from the Annual Report.

SOCIAL REPORT 2013/2014

Read more Read more Read more Read more Read more Read more

Find out more at www.bvca.co.uk/ResponsibleInvestment

WINNER

Category: Overall ESG framework Category: ESG engagement with portfolio companies

Continuing the journeyConclusion

Apax Partners Sustainability Report18

Designed and produced by Friend. www.friendstudio.com

Apax Partners Sustainability Report19