Apax Partners 2014 Annual Report

2014 ANNUAL REPORT

2014 ANNUAL REPORT

Apax Partners2014 Annual Report 1

Content

04 32

55

Interview with Eddie Misrahi,Chairman and CEO Focus on debt strategy

with Annick Bitoun

Interview with Ewald Draaijer, CEO of SK FireSafety Group

MESSAGE FROM THE CHAIRMAN AND CEO 4

APAX PARTNERS 7

Fundamentals 8

Investment strategy 13

Responsible investing 18

Our investors 24

2014A YEAR OF VALUE CREATION 27

2014 highlights 28

Portfolio activity 29

Portfolio performance 34

Fund performance 36

SNAPSHOT OF OUR PORTFOLIO COMPANIES AT 31 DECEMBER 2014 39

TMT (Technology-Media-Telecom ) 40

Retail & Consumer 44

Healthcare 48

Services 51

15 PORTFOLIO COMPANIES AT 31 DECEMBER 2014 56

CONTACTS 57

This report covers the activities of funds managed by Apax Partners SA and Apax Partners MidMarket SAS.

€158mp roceeds across all funds

17%g ross portfolio return

€80mi nvestments and commitments

15portfolio companies

at 31 December 2014

Apax Partners2014 Annual Report2

Profi le

Portfolio companies’ key fi gures

There are many entrepreneurs in France and elsewhere in Europe

aiming to make their companies champions of their industries, both

at home and abroad. To succeed, these entrepreneurs need the

backing of a committed investor who can provide vital resources

and support.

Realising the potential of these companies and developing them is

what motivates Apax Partners. Our 40 years of experience and sector

specialisation represent the key strengths that make us the right

choice. They enable us to identify the most promising companies in

our specialist sectors, understand their growth drivers and support

their management as they work to achieve their ambitions.

Our strong values and ethics also set us apart. We pride ourselves

on being a professional, respectful, exacting and bold partner.

By selecting Apax Partners, entrepreneurs are choosing a committed,

supportive and stimulating investor who will share their vision, their

strategy and their long-term development.

Our success is built on the close, trust-based relationships that our

teams have with our entrepreneurs and investors alike, and on our

desire to succeed as a team.

Apax Partners is an established, leading private equity ! rm both in

France and in Europe. We assist entrepreneurs who have ambitious

growth plans for their business.

Apax Partners réussit à ceux qui veulent réussir.

Ambitious expansion explained by Jean-Pierre Chantrel

WHO WE ARE?

WITH FOUR DECADES OF

EXPERIENCE, APAX PARTNERS

RANKS AMONG THE LEADING

PRIVATE EQUITY FIRMS

IN FRANCE AND EUROPE.

OUR MISSION IS TO HELP

AMBITIOUS ENTREPRENEURS

GROW THEIR BUSINESSES.

33

4.3%average revenue growth

9.2%average EBITDA growth

63,600p eople employed

13 build-up acquisitions


Internationalis ation,

digitalis ation and

build-ups drove value

creation in 2014

Apax Partners posted strong results for

2014, characterised by the excellent

performance of our funds and underpinned

by robust portfolio company growth. Over

the course of the year, Apax Partners’ funds

took in €158 m from two realisations and

a recapitalis ation. Portfolio companies

increased revenues by an average 4.3%

and grew average EBITDA by 9.2%. Those

gains translated into a robust 17% increase

in the total value of our funds.

The year was particularly notable for the increase in the value of Apax Partners’ funds.

It was a very positive year from the

standpoint of value creation. Our portfolio

companies grew strongly, both in terms

of sales and earnings. Companies in our

Apax France VIII fund led the way with

revenue growth of 13% and EBITDA growth

of 14%. The result was a gross portfolio

return of 26.5% for Apax France VIII. That

performance was supported by strong

Interview with Eddie MisrahiChairman and CEO


“ 2015 has started

with a fl urry

of work and

we have deals

in the pipeline.”

“Private equity also has a role to play in digital transformation of SMEs. We are determined to be at the forefront

of that change .”

growth in our other funds, leaving us with

a global gross portfolio return of 17%.

Credit for that performance rests with our

outstanding CEOs and the effectiveness

of their partnerships with our investment

teams. It also validates Apax Partners’

talent at identifying and driving growth

opportunities through our focus on

internationalis ation, consolidation and

digitalis ation.

Over the course of 2014, you formalis ed three themes as Apax Partners’ main levers of growth: internationalis ation, consolidation and digitalis ation. Can you talk more about that?

We have long viewed them as the key

drivers of value creation and as our core,

differentiating talents. That is evident in

our activity over many years, and again in

2014 when six companies secured bolt-on

deals or signi! cant commercial contracts

in foreign markets; four companies were

active in consolidating their existing

markets through build-up activity; and

six companies instigated major digital

initiatives to drive sales and improve service

quality.

Over 2014, we developed a framework

that formally imbedded those three levers

of growth at the heart of our activities,

ensuring they drive our acquisitions and

are systematically pursued at our portfolio

companies.

Why have you focused on digitalis ation as a driver of company growth?

The world is becoming digital, yet

many businesses, and sectors, still fail

to fully grasp the implications of that.

Our experience across all our investment

sectors has convinced us that an effective

digital strategy is an essential growth driver

and key to companies’ long-term survival.

That is why digitalis ation is a core element

of our value creation strategy.

A CEO’s awareness of digitalis ation is the

key factor in implementing an effective

digital strategy. There are three types of

CEOs: those who are fully aware of the

shift to digital and acting accordingly; those

who are aware of the issue but don’t have

an effective action plan; and those who

are unaware or dismissive of digital. We

love the ! rst type, believe we can help the

second and won’t back the last.

Private equity is also facing a digital

transformation. We are determined to be

at the forefront of that change and use it

to our advantage. In 2014, we instigated

several digital projects and expect to begin

to see the fruits of those endeavors in 2015.

During 2014, Apax Partners nominated a new Partner and recruited its fi rst Debt Manager. What were the reasons for those appointments?

Apax Partners has always evolved with

its investment environment and the two

appointments are part of that evolution. In

September, we recruited Annick Bitoun to

! ll our newly created role of Debt Manager.

Her appointment establishes a single

coordinating function for debt ! nancing

activities and the provision of financing

support to portfolio companies.

At the end of the year, we nominated

Franck Hagège as a Partner in our Retail &

Consumer team. Franck is the fourth

partner to have been appointed from within

the ! rm. We are one of the very few French,

middle-market firms that are able and

determined to foster future partners and

we see that as a real strength. It means we

create partners who understand our culture,

helping to ensure that our successful

investment processes are repeatable.

What are your expectations for 2015?

The year has started with a $ urry of

work and we have deals in the pipeline. Our

current fund is 60% invested and we hope

to raise that to 80% or 90% by the end

of 2015. We also expect to ! nalis e two or

three sales.

In terms of our portfolio companies,

we remain positive. The companies are

forecasting organic EBITDA growth in the

region of 10% and revenue growth of about

6%. Those ! gures exclude build-up deals,

which are not budgeted but which should

be expected.



Fundamentals 8

Investment strategy 13

Responsible investing 18

Our investors 24

Apax PartnersA leading player in private equity in the French-speaking world


Apax Partners is an independent investment company specialising in ! nancing for SMEs in France and abroad.

We are a leading player in private equity in the French-speaking world. Our investment strategy is to take

signi! cant equity stakes in innovative, fast-growing companies in our sectors of specialisation.

Apax Partner s’ success is built on:

• the collaborative relationships we develop with our entrepreneurs;

• our desire to succeed as a team;

• close, trust-based relationships with our investors.

An independent company, wholly owned by its P artners Apax Partners is authorised by the AMF (Autorité des Marchés Financiers - the French Financial Markets

Authority) and bene! ts from a short and ef! cient decision-making process:

• decisions are made in Paris by the seven Partners;

• Partners meet weekly to manage the support strategies of the portfolio companies and to identify investment

opportunities.

(management

company)

Financial

institutions

Insurance

companies

Pension

funds

Private

investors

ApaxPartners

Investors

Companies supported

Allocate funds

Manages

Provides performance

reporting

Identi�es investment

opportunities

Supports entrepreneurs

Develops companies

Distribute proceeds

Apax Funds

Provide long term equity financing

Fundamentals

APAX PARTNERS TAKES EQUITY STAKES

IN FAST-GROWING, INNOVATIVE COMPANIES

IN OUR SECTORS OF SPECIALISATION .


Fundamentals

Private Equity pioneer in Europe

One of the largest and most experienced teams in the French-speaking mid-market

“Our independence is our strength: decisions

are made in Paris, directly and eE ciently.

As entrepreneurs ourselves, we understand the needs

of the business owners who come to us.” Eddie Misrahi

Key dates

The Apax

France VIII fund

is more than

60% invested

2014

Apax Partners

in France decides

to maintain its

mid-market

focus and

independence

from the other

Apax Partners

entities

2006

Maurice Tchenio

and Ronald

Cohen found

Apax Partners’

predecessor

Multinational

Management

Group (MMG)

in France and

the UK

1972

Apax Partners

initiates

France’s

fi rst venture

capital fund ,

or FCPR (Fonds

Commun

de Placement

à Risque ), with

francs 100m .

1983

The fi rm adopts

a sector- focused

strategy

1990

Apax Partners’

founder passes

control of

the fi rm to

its partners

2010

MMG and

Alan Patricof

Associates

(US) join forces

1976

Co-foundation

of the French

private equity

association

(AFIC)

1984

MMG is

renamed

Apax

Partners

1991

Apax Partners is a pioneer of the private

equity industry in Europe and in particular

in France. In 1983, it raised the first fund

exclusively targeting French investments,

which became the ! rst FCPR (Fonds Commun

de Placement à Risque ) to be launched in

France. The French private equity association

(AFIC) was created in 1984, co-founded by

Apax Partners’ founder Maurice Tchenio and

Apax Partners is led by Eddie Misrahi. He is

assisted by six other P artners with an average

of 16 years with the company. The investment

team totals more than 20 professionals. It is

organised into sector-teams of three to ! ve

professionals, many of whom have long-

term experience working or investing in

four other investment professionals. Since

then, eight funds have been raised by Apax

Partners in France, totaling more than €2.4bn.

Today, Apax Partners is one of the most

dynamic private equity ! rms operating in the

French speaking mid-market, with more than

€1.8bn invested over the past 10 years.

their respective sectors. The sector-teams

are supported by a dedicated business

development team responsible for screening

investment opportunities and developing

privileged relationships with intermediaries.

Our team of multidisciplinary investment

professionals combine ! nancial, operational

and industry expertise. To manage and

strengthen our highly-effective teams, Apax

Partners applies rigorous internal processes

for recruitment, training and promotion, with a

long-standing policy of promoting from within.


Partners

Thomas de Villeneuve

TMT

Bertrand PivinBUSINESS SERVICES

AND HEALTHCARE

Eddie MisrahiCHAIRMAN AND CEO

Monique CohenBUSINESS &

FINANCIAL SERVICES

Gilles RigalTMT

Franck HagègeRETAIL & CONSUMER

Bruno CandelierRETAIL & CONSUMER


Eddie Misrahi Chairman and CEO

Eddie’s time is divided between investor relations, various investment committees and managing the fi rm.He started his career at McKinsey in Paris before working in the United States in an American telecommunications group. He joined Apax Partners in 1991 as Partner in charge of TMT investments, before becoming General Manager in 2007.Eddie was President of the AFIC (French private equity association) from 2007 to 2008.

É cole Polytechnique, Harvard Business School.

Lived 11 years in the US and South America.

Launched Apax Partners’ digital initiative.

Monique Cohen PartnerBusiness & Financial Services, Head of Business Development

Monique began her career at Paribas, where she rose to head of Equity Capital Markets and then Senior Banker. Later, at BNP Paribas, she was Global Head of Equity.Since joining Apax Partners, Monique has concluded six investments, notably in business services (Faceo, Alma Consulting) and fi nancial services (Buy Way Personal Finance, TEXA)Monique is an Independent Director on the Board of Directors of Safran and BNP Paribas and an i ndependent m ember of the Supervisory Boards of JCDecaux and Hermès. She was a B oard member of the AMF (Autorité des Marchés Financiers) France’s fi nancial regulatory authority from 2011 to 2014.

É cole Polytechnique.

Lived three years in London. Worked on Alma Consulting’s transition from a local company into a Europe-focused SME.

Participated in Faceo’s build-up acquisitions in the UK, Germany and the Netherlands.

Continued the digital transformation of TEXA.

International Build-up Digital transformation

Bertrand Pivin PartnerBusiness Services and Healthcare, ESG policy

Bertrand started his career conducting advanced research in signal processing for Alcatel in Paris, France, before moving to the USA to oversee R&D projects for North American Telecom companies. He joined Apax Partners in 1993.Bertrand’s recent activity has included acquisitions, divestments and build-ups in private education, safety and security services, and healthcare. He is a Board m ember of Capio (Sweeden), Unilabs (Switzerland), SK Firesafety (Netherlands), Amplitude (France), and Groupe INSEEC (France).

É cole Polytechnique, Telecom ParisTech, Harvard Business School.

Lived several years in Germany and the US, speaks fi ve languages.

Oversaw 50 build-ups for Unilabs and Capio; Vizada’s transformative acquisition of Telenor Satellite Services, which created a worldwide leader in Mobile Satellite Services.

Fo ster transformation of Groupe INSEEC through digital learning models .

Gilles RigalPartnerTMT

Gilles started his career as an entrepreneur with the creation of IGL, a software and services company which was sold fi ve years later to Thales. He then joined McDonnell Douglas Information Systems where he became Division manager, and Systar, a French-based international software company where he was successively General Manager for France, Europe and worldwide operations. In 1995 he joined BMC Software, the world’s 5th largest software vendor, as General Manager France, rising to the position of Vice President of EMEA.Since joining Apax Partners, Gilles has been involved in many investments including Altran, Cartesis, Gfi Informatique , Odyssey, and Vocalcom.

ENSEEIHT, University of Toulouse.

10 years of managing businesses worldwide.

Managed around 30 build-ups directly and as an investor.

100% of his investments have been in the digital space.

Bruno CandelierPartnerRetail & Consumer

Bruno started his career in 1996 as a consultant for McKinsey & Company in Paris, London and Johannesburg. He joined Apax Partners as an A ssociate and was later elected P artner in 2010. Since then, he has realis ed three transactions: Maisons du Monde, THOM Europe and Europe Snacks, and he is a Board member of THOM Europe and Europe Snacks.

É cole Nationale des Mines, INSEAD.

Lived six years in South Africa, the United Kingdom and the West-Indies.

Realised the merger between Histoire d’Or and Marc Orian.

Developed the digital distribution channel (e-commerce and CRM) of Maisons du Monde.

Franck HagègePartnerRetail & Consumer

Since joining Apax Partners in 2004, Franck has been involved in a number of transactions including ALAIN AFFLELOU, where he is a B oard member, Europe Snacks, Maisons du Monde, Rue du Commerce and THOM Europe. Previously, Franck worked for five years as a management consultant with A.T. Kearney where he was involved in several assignments for corporate and private equity players. He also worked at NetsCapital where he managed M&A transactions in the Internet fi eld.

HEC Business School, Stern Business School.

Lived in New-York and worked over several years on projects in Denmark and Belgium.

Supported Rue du Commerce during the implementation of its marketplace strategy.

Thomas de VilleneuvePartnerTMT

Thomas started his career with the Boston Consulting Group at its Paris and New York offi ces, focusing on telecom and media clients.He joined Apax Partners as an A ssociate and was elected P artner in 2010. Thomas has participated in nine TMT transactions, most recently in Numericable Belgium and Luxembourg, Cabovisã o and Infopro Digital. He is a B oard member of Altran and Infopro Digital.

HEC Business School.

Lived seven years in the US, Belgium and London.

Supervised 12 build-ups for Infopro Digital, including the acquisition of Groupe Moniteur which doubled the company’s size.

Participated in Info pro Digital’s successful transition from a print to digital model.

“Partners each boast an average of 16 years

with the company. The team combines

extensive international, build-up and digital

transformation experience. ”

Fundamentals


Fundamentals

Front row, from left to right:

• Nicolas Essayan

• Aida Ben Lamine

• Eddie Misrahi

• Vincent Colomb

• Francesco Revel-Sillamoni

Second row, from left to right:

• Thomas de Villeneuve

• Qiongyan Shao

• Julien Birman

• Monique Cohen

• Bertrand Pivin

• Damien de Bettignies

• Franck Hagège

• Annick Bitoun

Third row, from left to right:

• Henry Capelle

• Brahim Ammor

• Edouard de Beaufort

• Guillaume Cousseran

• Bruno Candelier

• Thomas Simon

• Gilles Rigal

• Christian Pimont

The Apax Partners investment team

“21 professionals dedicated

to our sectors of specialisation.”


Investment strategy

Mid-size companies

Compa nies with growth potential

Value Creation

Healthcare

Build-ups

Retail & Consumer

Digital

transformation

Business & Financial Services

Trust

relationship

Financial

optimisation

TMT(Technology-

Media-Telecom )

Internationalisation

OUR INVESTMENT STRATEGY IS TO TAKE SIGNIFICANT EQUITY STAKES IN INNOVATIVE,

FAST-GROWING COMPANIES IN OUR SECTORS OF SPECIALISATION.


Investment strategy

* LBO and growth only, since 1990.

Technology-Media-Telecom

Retail & Consumer

33%

19%

19%

14%

14%

France

UK

Netherlands

Germany

Other

36%

32%

11%

11%

8%

2%

UK

Other

France

Switzerland

Netherlands

Germany

3 EUROSTOXX 600 TECH (by number of companies)

3 EUROSTOXX 600 RETAIL, FOOD & B EVERAGE(by number of companies)

3 TMT DEALS IN EUROPEAN FRENCH SPEAKING COUNTRIES FROM 2003 TO 2013

3 RETAIL & CONSUMER DEALS IN EUROPEAN FRENCH SPEAKING COUNTRIES FROM 2003 TO 2013

France leads the way

France, a major player

nu

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of

de

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0

2

4

6

8

10

12

14

Apax Partners outdistances the competition

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4

6

8

Apax Partners outdistances the competition

(source: Apax Partners, Mergermarket)


25 deals €918minvested*


A SECTOR-FOCUSED MODEL PROVIDES APAX PARTNERS WITH A COMPETITIVE

ADVANTAGE THANKS TO ITS IN-DEPTH UNDERSTANDING OF SPECIFIC INDUSTRIES.

Apax Partners

Competitor

Apax Partners

Competitor

Sector specialisation


Investment strategy

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of

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1

2

3

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5

(1) Only services companies have been selected within the Industrial Goods & Services Index.

Healthcare

Business & Financial Services

33%

19%

17%

17%

11%

3%

Other

Germany

Switzerland

UK

France

Netherlands

49%

21%

12%

11%

4%

3%

UK

Other

Switzerland

France

Netherlands

Germany

3 EUROSTOXX 600 HEALTHCARE (by number of companies)

3 EUROSTOXX 600 INDUSTRIAL GOODS & SERVICES, FINANCIAL SERVICES (1) (by number of companies)

3 HEALTHCARE DEALS IN EUROPEAN FRENCH SPEAKING COUNTRIES FROM 2003 TO 2013

3 BUSINESS & FINANCIAL SERVICES DEALS IN EUROPEAN FRENCH SPEAKING COUNTRIES FROM 2003 TO 2013

France, a signifi cant player

France, a major player

Apax Partners is among the leaders

nu

mb

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of

de

als

0

1

2

4

3

6

5

7

Apax Partners’ outdistances the competition





Apax Partners

Competitor

Apax Partners

Competitor


Growth focused

Apax Partners invests primarily in companies

with strong fundamentals and a potential for

accelerated growth through strategic and

operational change. Apax Partners’ portfolio

companies are characterised by key criteria:

• ambitious growth-driven entrepreneurs and

management teams, that operate in a fully-

aligned partnership with Apax Partners;

• differentiated product offerings and market

positions, providing downside protection

and signi! cant barriers to entry;

• market leadership potential, either on a

domestic, European or global level.

Partnership approach

Apax Partners’ relationship with the

management teams is based on a shared

enterprise vision, strictly aligned financial

interests, and clearly defined respective

roles. While corporate management is

responsible for day-to-day operations,

Apax Partners’ team challenges them to

deliver profitable growth and provides

ongoing advice on strategic issues, as well

as assistance in support functions when

requested (e.g. ! nance, human resources,

IT and communications).

Investment strategy

Apax Partners focuses the growth strategy of its portfolio companies on three speci! c areas: internationalisation, build-ups and digital transformation.

Implementing these strategies is made possible thanks to the trust-based relationships between entrepreneurs and the Apax Partners teams

(see portfolio activity section).

Value creation


Entrepreneurs know that often

the most promising growth

opportunities can be found

overseas. We have strong

experience in implementing

international strategies in our

portfolio companies.

Digital transformation

Businesses that want to succeed

must change their models

to meet the expectat ions

of millennials and embrace

the major t ransformat ion

that implies. In France, this

generation will constitute half of

the labour force by 2020 and its

entrepreneurs will be the people

Apax Partners will support in the

future. The hyper connectivity of

this generation has an impact

on their consumption and how

they act as employees. It is our

mission to help prepare dynamic

French SMEs to take advantage

of this change by supporting their

digital transformation.

Build-ups

With 70 operations between

2012 and 2014, build-ups have

always been an integral part of

accelerating the growth of our

portfolio companies.

Trust relationship

We are strongly committed to

the entrepreneurs that we back.

When these entrepreneurs

choose to partner with us they

choose a committed, supportive

and stimulating investor that will

share their vision, their strategy

and their long term development.


Minority or majority investor

Apax Partners typically takes majority or

signi! cant-minority stakes and has systematic

representation on the B oards of its portfolio

companies. That enables it to participate

in all major decisions and actively support

the growth strategy implemented by its

companies. Moreover, controlling positions

enable Apax Partners to better negotiate

investment and exit conditions.

We also accept minority positions if the

transaction is based on a genuine partnership

with the management team, which confers us

certain rights.

Long-term investor

Apax Partners typically operates on a ! ve-

year investment horizon, though this depends

on the specific business plans and value

creation objectives. An investment may

be exited after just three to four years if a

company outperforms its goals. Conversely,

Apax Partners can hold an investment for

six to seven years, for instance, when a

business plan needs more time, or because

of an economic downturn. Exit timing and

routes (trade sale, secondary buy-out, IPO)

are selected on the basis of their ability to

best serve the twin interests of maximising

exit values for Apax Partners’ investors

and supporting portfolio companies’ future

growth.

Mid-cap

Apax Partners targets LBO and growth capital investments in mid-size companies located primarily in French-

speaking countries. We focus on businesses with enterprise values up to €500m.

That incorporates an abundance of investment opportunities in the mid-market, including family-owned

companies, non-core divisions of large corporations, undervalued listed businesses and private equity-owned

companies where growth opportunities remain unexploited.

France is the second largest private equity mid-market in Europe.

3 MIDCAP TRANSACTIONS (€50M-€ 1,000M ) WITHIN APAX PARTNER S’ FOUR SECTORS (2010-2013)

200

100

0UK NetherlandsFrance GermanyScandinavia SpainItaly Belgium Switzerland

Scandinavia includes: Sweden, Finland, Norway and DenmarkSource: Mergermarket

Investment strategy


Apax Partners acts as a responsible investor,

throughout our investment process and

through the monitoring of our investments.

Our approach includes:

• Conducting systematic due diligence

based on key criteria;

• Establishing a “responsible” roadmap

with our entrepreneurs, and following it

throughout the investment;

• Performing vendor due diligence when the

investment is sold.

Regulated management company

Apax Partners is a portfolio management

company regulated by the Autorité des

Marchés Financiers (AMF), France’s ! nancial

regulatory authority. Within the framework

of the agreement obtained from the AMF,

Apax Partners has committed to respect

certain standards of management and follow

rules of good behaviour. The principles of

internal control and business ethics are

written, circulated and regularly checked and

updated. The ! rm manages regulated funds

known as Fonds Professionnels de Capital

Investissement (FPCI) and is fully compliant

with the EU’s Alternative Investment Fund

Managers Directive (AIFMD).

Apax Partners is also a member of

Association Française des Investisseurs pour

la Croissance (AFIC), the French private equity

association. AFIC members must comply with

the association’s code of ethics.

Governance

The company is managed by committees

at the strategic, operational and investment

levels. Two committees oversee the ! rm’s

management. The Strategy Committee

including all the Partners meets four times

a year to discuss matters of strategic

importance to the ! rm. In particular, it reviews

fund performance, investment strategy, team

performance, and sets overall business

development goals. All P artners meet on a

regular basis to take key operating decisions.

Transparency

Apax Partners has adopted corporate

governance best practices across its

management process including a commitment

to transparency for all stakeholders.

The company continuously provides

comprehensive and extremely detailed

reporting to its investors on the performance

of investment funds and portfolio companies.

These reports are updated on an on-going

basis.

Investment and value creation processes

Apax Partners applies rigorous and consistent

investment-selection and value-creation

processes. Four committees scrutinise

each investment at different stages of the

investment life cycle:

• Approval Committee. Monitors investment

opportunities and works with the deal team

to ensure that opportunities comply with

the ! rm’s investment strategy and that due

diligence is properly conducted.

• Investment Committee. Makes all

investment decisions based on very

detailed information regarding the targeted

business (market position, competitive

analysis, risks, opportunities, management

quality, etc.), as well as investment issues

(business plan, ! nancial structure, expected

returns, etc.)

• Portfolio Monitoring Committee.

Monitors the operational and financial

performance of portfolio companies on a

formal basis. This process is in addition to

monitoring carried out by deal teams, which

meet regularly with portfolio companies’

management at Board meetings or

reporting meetings. In addition to monthly

reviews of portfolio company performance,

full portfolio reviews, involving all the

Partners, are held twice yearly to monitor

and analyse each investment, update the

business plan, and study growth or exit

opportunities.

• Exit Committee. Makes all exit decisions.

Professional and responsible investor

Apax Partners has always been committed

to being a professional shareholder, and fully

assumes all the responsibilities that entails.

The ! rm consistently seeks to innovate to

be ahead of major developments and in this

spirit decided, in 2011, to embrace socially

responsible investment and develop a

comprehensive environmental, social, and

governance (ESG) strategy, which is set out

in the following sections.

“Apax Partners is one of the few private equity

companies that publishes an annual report, and has

been a pioneer of that practice”. Eddie Misrahi

Responsible investing

APAX PARTNERS TAKES PRIDE IN ITS CORPORATE

GOVERNANCE AND TRANSPARENCY POLICIES, AS WELL AS ITS

INVESTMENT APPROVAL AND OVERSIGHT PROCEDURES.


A voluntary ESG approach

Apax Partners’ commitment to excellence and innovation led it to de! ne a

set of environmental, social and governance (ESG) principals that are fully

integrated into the ! rm’s investment strategy. The ESG approach is guided

by two factors: risk management and the identi! cation of opportunities

to create value.

Apax Partners signed the ! rst social and environmental charter

of the French Private Equity Association (AFIC) in 2008.

A three-phase strategyWe de! ned a three-phase approach that set out objectives for short, medium, and long-term action plans:

2011-2012: Apax Partners defi ned the strategy and took fi rst measures at its own level

• Signed the PRI (Principles for Responsible

Investment).

• De! ned Apax Partners strategy with the help of

S ustainable D evelopment consultants.

• Launched a review with investors, adressing

their particular ESG concerns.

• Allocated dedicated resources: a P artner and

support staff were made responsible for the

application of ESG policy.

• Trained all Apax Partners staff in ESG.

• Awarded the inaugural “GP Responsible

Investing Award” by Pantheon.

2012-2013: Apax Partners launched implementation at portfolio company level

• Implemented ESG due diligence in our

investment process on a systematic basis.

• De! ned ESG speci! c principles and criteria to

be monitored.

• Contributed to speci! c ESG studies.

• Carried out France’s first ESG vendor due

diligence when selling Maisons du Monde.

2014-2015: Apax Partners reinforces its ESG e5 orts and implements its ESG strategy throughout France VIII portfolio companies

At the Apax Partners’ level

• Contribute to the development of ESG within the private equity sector:

• s ignatory of AFIC’s new charter;

• a ctive member of AFIC’s ESG commission, participation in AFIC’s ! rst ESG annual

report;

• p anelist at conferences: PEI (Responsible Investment) in London, AFIC (Governance

and ESG) in Paris;

• c ontribution to PRI guide “ Integration ESG in private equity” with a dedicated

Apax Partners case study.

• Offsetting carbon emissions:

Since our carbon-balance footprint assessment in 2011, Apax Partners has offset

its emissions. In 2014, our team voted to support two projects: “ Wind power in New

Caledonia” , a registered project conforming to Gold Standard criteria (GS n° 566), and

“ Ef! cient cooking stoves in Mali” , a registered project conforming to Gold Standard

criteria (GS n° 414).

• Our internal social policy:

• c ompetitive compensation policy (each staff member with at least three years of

tenure is entitled to carried interest);

• a minimum of two annual appraisal interviews and a structured career path with

four milestones (four of the seven P artners started as S enior A ssociates);

• t raining: individual and collective;

• s tability of the team: more than 16 years of seniority for the 7 P artners.

• Reinforcement of dedicated resources: a P artner and the recruitment of a full time

experienced ESG manager.

• Half-yearly ESG updates to investors.

“We are convinced that ESG topics

contribute to creating value

well beyond the improvement

of fi nancial performance. ”

Bertrand Pivin, Partner & ESG Policy

and M athilde Bonn ans, ESG Manager




Pragmatic and concrete support at the portfolio

companies’ level

We are convinced that Environmental, Social and Governance topics

contribute to creating value well beyond the improvement of ! nancial

performance. This conviction has led to the implementation of a tailor-

made ESG action plan for each company.

Scope

We offer close guidance and support to our most recently acquired

companies. This position ensures that we have enough time to de! ne

and implement an ESG action plan over several years, for each

company.

Apax Partners ESG strategy is present throughout the investment process:

At exit, Apax Partners:

• Provides ESG vendor due diligence.

Wind power in New Caledonia, one of the projects supported by Apax Partners to oH set its carbon emissions.

During the holding period, Apax Partners:

• De! nes a speci! c roadmap with management;

• Encourages the appointment of a company project leader;

• Supports implementation of the action plan;

• Regularly follows ESG implementation and results via appropriate governance.

Before an acquisition, Apax Partners:

• Systematically conducts ESG due diligence;

• Integrates ESG principles into offers and shareholder agreements.



Actions taken by our portfolio companies in 2014

• In accordance with its strategy of providing biomass renewable

resources that offer alternatives to fossil fuels, Albioma is testing

the use of sugarcane straw, green waste and sorghum cultivated

on unfarmed lands, at an industrial scale.

• Embarked on the Solar Impulse adventure, aiming to complete a

round-the-world $ ight relying only on solar energy, Altran de! ned

the best routes to $ y, the autopilot program, the safety and reliability

analysis to obtain permits to $ y.

• Amplitude constituted its ethics committee and created its ethics

charter.

• Europe Snacks has stepped up efforts to improve the nutritional

pro! le of its products by using sun$ ower oil instead of palm oil and

by reaching a new sodium target.

• Gfi Informatique established its “Sustainable Purchasing Charter”

integrating the social and environmental criteria to its Purchasing

Policy and expressing these expectations towards its suppliers.

By signing this Charter, the supplier commits to respect in full its

provisions.

• Groupe INSEEC published its ! rst CSR report setting out an

overview of both existing practices and commitments for the

following months.

• SK FireSafety Group considers itself to be a social responsible

company, and since the beginning, has developed a range of

products that now lead the market regarding eco-friendliness.

• After de! ning its core values, TEXA formalised its charter of ethics

and conduct with concrete examples.

• THOM Europe included requirements in terms of respect for

environment, child labor, employees’ rights, workplace health and

safety in its supplier charters.

CHRISTOPHE BÉESAUHead of “Advanced Modelling and Simulation”, Altran engineer and

member of Solar Impulse MCC

“A mathematical theory of complexity was developed and we now

apply it to the Solar Impulse route determination and $ ight plans.

The Mission Control Center (MCC) in Monaco is at the core of Solar

Impulse. The solar plane will be guided from this control tower for

the 2015 round-the-world trip by the Altran engineers who are at

the heart of the $ ight preparation, control and monitoring .”

BÉNÉDICTE BOUCHÉDirector of Human Resources, TEXA

“Security is important and it is a shared concern. To avoid accident

such as experts falling from height while inspecting roofs, we tested

a camera mounted on a telescopic pole linked to a smartphone.

Therefore, the roof can be visualis ed from the ground, without risk.

The test has proven successful and we are currently equipping our

experts. Thus, innovation is at the service of security .”

JEAN-PIERRE CHANTRELGeneral Manager and CFO, THOM Europe

“As a leading jewellery and watch retailer, THOM Europe is

focused to reinforce responsible purchasing policy .”

EWALD DRAAIJERCEO, SK FireSafety Group

“People are key in achieving our goals. Next to the continuous

attention for the safety of our own employees, it explains our

efforts to educate and train people in (! re) safety. Or why

we co-founded an extinguishing equipment maintenance

company consisting of people with a disadvantage to the job

market, or why we create awareness by annually sponsoring

the Child & Burn Foundation .”



CATHERINE LESPINECEO, Groupe INSEEC

“We are convinced that our willingness and our exemplarity

will ensure that the future leaders we train, integrate economic,

social and environmental impacts in their decisions. In other

words, that they demonstrate their belonging to a CSR vision .”

SAKINA SEDJARICSR Advisor within the Quality Department, Gfi Informatique

“The Sustainable Purchasing Charter allows Gfi Informatique to

express its engagement and social development values through

its purchasing policy involving its suppliers in a common-progress

approach aimed at ensuring clients’ long-term satisfaction .”

JACQUES PÉTRYCEO, Albioma

“Our corporate responsibility cannot be carried out without a

high level of transparency and a regular dialogue with all our

stakeholders. In order to answer their questions as best as

possible, we launched an action plan aiming to better identify,

know, and understand their expectations, in 2014. Our strong

industrial culture is complementary to our wish to be a citizen

company perfectly integrated into its ecosystem .”

OLIVIER JALLABERTCEO, Amplitude

“With our business, we are constantly striving for excellence.

The charter and the ethics committee bear witness to the

importance attached to this topic, and enable Amplitude to

improve further .”

ALINE MAYSSEQuality, Safety and Environment Manager, Europe Snacks

“Europe Snacks wishes to be a reference company in its

French and European markets through its ! rm commitments

to quality, safety, environmental and ethical issues. We attach

great importance to meeting consumer expectations, notably

on health topics. It is a key priority for us .”



“Apax Partners is one of a handful

of private equity fi rms to publish

a corporate social responsibility report

covering the companies in its portfolio.“

(1) ALAIN AFFLELOU, Albioma, Altran, Amplitude, Capio, Europe Snacks, GÞ Informatique , Groupe INSEEC, Groupe Royer, Infopro Digital, SK FireSafety,

TEXA, THOM Europe (Histoire d’Or, Marc Orian and TrésOr), Unilabs, and Vocalcom.

Corporate s ocial responsi bility report

Our reporting on human capital includes

workforce evolution, distribution of created

jobs, and an analysis of social policies. All of

our portfolio companies’ General Managers

and Human Resources Directors participated

in the report, ensuring the data provides a

complete overview of Apax Partners’ 2014

year-end portfolio of 15 portfolio companies (1).

In this report, the 2014 human capital results

are compared with the 2013 data, so as to

preserve a constant base.

In 2014, the total average workforce at our

portfolio companies was 63,600 people. That

represented an 8% increase year-on-year,

with internal growth and external growth

contributing nearly evenly to the increase. Our

portfolio companies added a total 5,300 jobs,

of which 2,800 were newly created positions

and 2,500 were due to external growth.

Overall, our portfolio companies increased

net employment by 5,080 jobs.

The total value of wages and salaries

increased to €3.4bn, up 6% year-on-year. The

bulk of that growth was due to individual wage

increases, while growth in the headcount also

contributed across 11 companies .

Employment in France increased 6% over the

course of 2014, to represent a total 54% of

our portfolio companies’ workforce.

By the end of 2014, 13 portfolio companies

had established wage agreements and

profit-sharing schemes (Intéressement &

Participation ). Those companies distributed

a total of €18m to employees, up 21% on

2013, a clear sign of their robust health.

Over the course of the year, 12,040 employees

received training, up 9% over 2013. A total

of 273,800 hours of training were provided,

representing a total €22m of investment in

improving the talents of the workforces.

Further efforts were made to improve social

policies within the portfolio companies during

the year. In 2014, 101 collective agreements

were signed, up 14% over 2013. Most of

those were wage agreements, pro! t-sharing

and savings schemes.

5,080net employment increase

+6%employment in France

+21%distributed through wage

agreements and profi t-sharing

Social report

63,600 employees

+6% average wages and salaries

+8% employment

Portfolio companies report

15 portfolio companies

+4.3% average revenues

+9.2% average EBITDA


Our investors

THE APAX FUNDS HAVE BEEN RAISED FROM A WIDE RANGE

OF INTERNATIONAL INVESTORS (LIMITED PARTNERS), INCLUDING

PENSION FUNDS, FUNDS OF FUNDS, SOVEREIGN FUNDS, INSURANCE

COMPANIES, BANKING COMPANIES AND PRIVATE INVESTORS.

Diversifi ed investor base

Apax Partners has raised and managed a total of more than €2.4bn through eight

successive private equity funds (Fonds Professionnels de Capital Investissement -

FPCI), both individually and together with Altamir, a publicly traded company.

3 INVESTORS IN APAX FRANCE VIII

40%

27%

20%

6%

4%

2%

1%

Investment companies

Pension funds

Funds of funds

Sovereign funds

Insurance companies

Apax Partners

High net-worth individuals

By type

51%

23%

20%

6%

France (including Altamir)

North America

Other Europe

Rest of the world

By geography

3 FUNDS RAISED BY APAX PARTNERS IN FRANCE

( €m - Includes funds raised with Altamir from Apax France IV to Apax France VII)

400

600

800

1,000

200

0

1983 1986 1990 1996 1998 2000 2006 2011

ApaxCR

15

ApaxCR II

49

ApaxCR III

96

ApaxFrance IV

82

ApaxFrance V

300

ApaxFrance VI

700

ApaxFrance VII

900Apax

France VIII

704

Altamir no longer co-invests with the funds managed by Apax Partners. It is now an

investor in the Apax France VIII fund (further information on Altamir is available at

www.altamir.fr).


Our investors

“Apax Partners manages a total

of more than €2.4bn.”

Investor relations

Apax Partners maintains regular contact with

investors, providing them with very detailed

reports and meeting with them several times a

year. Investors in each of the Apax Funds are

invited to an Annual General Meeting. Each

of the Apax Funds has a Board of Advisors,

comprised of its main LPs, who meet at least

twice yearly. The Boards of Advisors discuss

fund transactions, the biannual valuation of

investments (which are stated in the fund

accounts) and any potential conflicts of

interests.

The ! rm has one professional dedicated to

investor relations. Together with the P artners,

the Investor Relations Of! cer meets regularly

with existing and potential investors from

across the world, with a view to updating

them on Apax Partners’ activity and portfolio,

and preparing the next fundraising process.

Fully-aligned and transparent compensation policy

Like most private equity ! rms, Apax Partners’

revenues include an annual management fee

that covers the company’s operating costs

(staff salaries, rent, etc.). This fee has declined

over time, as a percentage of funds under

management, as larger funds have been

raised.

At an individual level, the Apax Partners team

invests signi! cantly into the company’s funds,

on the same terms and conditions as other

investors. This serves to align their interests

with those investors and incentivise long-term

value creation in portfolio businesses.

3 COMPENSATION POLICY

Management fee

3F ees received from portfolio

companies (including transaction

and monitoring fees) are deducted

from the annual management fee.

3The management fees are used

to invest in one of the largest

private equity teams in the French

market, enabling Apax Partners to

fully implement its sector-focused

strategy.

Carried interest

3Carried interest is linked to overall

fund performance after fees, and

not on a deal-by-deal basis.

3Carried distribution is paid

only after investors have been fully

repaid their principal and their

hurdle return.

3Carried interest is distributed

widely to the team: each

staff member with at least

three years of tenure is entitled to

carried interest.

3Apax Partners has one of the most

stringent vesting policies in the

industry.

Co-investments

3Partners typically make signi! cant

investments in each of the Apax

Funds, on the same terms and

conditions as other investors.

3Partners are prohibited from co-

investing directly in any single

investment made by an Apax

Fund.

Finally, all Apax Partners staff receive a

performance-based incentive in the form of

a 20% carried interest payment. This is paid

when, and only if, a fund has generated a

return to investors in excess of 8% per annum

over its life (known as a hurdle rate). A fund

typically has a 10-year life and carried interest

is generally paid in later years when most of

its investments have been sold and investors

have recovered their capital.

In order to fully align its interests with those of

its investors, Apax Partners also has a number

of longstanding, investor-friendly policies.



A YEAR OF VALUE CREATION

Backed by Apax Partners, companies in the portfolio

continued to expand and create jobs.

The growth strategy focused on three specifi c areas:

internationalisation, build-ups, and digital transformation.

20142014 highlights 28

Portfolio activity 29

Portfolio performance 34

Fund performance 36


2014 HIGHLIGHTS

Follow us every day!Blog www.apax-talks.fr

T Twitter @ApaxFrance

l LinkedIn Apax Partners MidMarket

Scoop It Apax Partners

January

#Arrival of Julien Birman and Vincent Colomb

as senior associates.

#Brahim Ammor and Henry Capelle are promoted

to the position of Principal.

February

#Mathilde Bonnans is appointed ESG Manager.

April

#Buy Way Personal Finance, one of the leading

consumer credit institutions in Belgium and

Luxembourg, is sold.

May

#Monique Cohen is appointed independent

director of BNP Paribas’ B oard of D irectors

for three years.

#Apax Partners MidMarket is launched on

LinkedIn.

June

#Acquisition of SK FireSafety Group, the fi re

safety specialist in Northern Europe.

#Eddie Misrahi was on the cover of Private Equity

Magazine: “I found the best job in the world. Consultants think, operatives materialise, but the investor enjoys the best of both worlds.”

July

#Apax Partners created a Scoop It press watch

on fundamental issues for SMEs: international

growth , digital transformations, and build-up

strategy.

September

#Three of our past and present portfolio

companies (Sephora, Maisons du Monde and

Histoire d’Or) were ranked in Challenges’ top

30 favourite retail brands in France.

#Annick Bitoun, debt manager, and Qiongyan

Shao, senior associate, joined Apax Partners.

October

# In the AFIC 2013 ESG report, Apax Partners

was one of the 18 investment funds to

voluntarily present the results of its ESG policy.

Apax Partners also provided examples of

initiatives by its portfolio companies Maisons

du Monde, Groupe INSEEC and

TEXA.

#Eddie Misrahi spoke at the École Polytechnique alumni club on the

subject: “Is it really impossible to create a giant digital player in France?”.

December

#Portfolio companies controlled by investment

funds added a net 36,000 jobs in 2013, of

which 5,150 were attributable

to Apax Partners’ portfol io

companies.

#Apax Partners was awarded

“Best French Mid & Upper Mid

LBO Fund” at the Private Equity

Exchange & Awards.

#@ApaxFrance arrived on Twitter.

#Franck Hagège was promoted to

Partner in the Retail & Consumer

sector team.


Divestments and investments

Apax Partners generated €158m in proceeds in 2014, compared to €327m in 2013, and made €80m of

investments and commitments in 2014, compared to €214m in 2013. In addition to the new acquisitions,

€10m of follow-on investments were made to fund build-up acquisitions and support portfolio companies.

Divestments:

Buy Way Personal Finance, one of the leading consumer credit institutions in Belgium and Luxembourg

Apax Partners sold its stake in April 2014 to Chenavari Investments Managers. Buy Way, which was

p reviously a subsidiary of BNP Paribas, manages a loan portfolio of approximately €400m and employs

around 250 people. During the four-year partnership, Apax Partners signi! cantly reorganis ed the ! rm and

supported its successful growth.

DBV Technologies, a clinical-stage specialty biopharmaceutical company

In September 2014, Apax Partners sold its stake in the last venture company of its portfolio.

Investment: SK Fire Safety Group, the fi re safety specialist in Northern Europe

This new investment is a typical Apax Partners deal involving a company with strong growth prospects,

a high-quality entrepreneurial team, and market leadership positions.

The Apax France VIII fund, together with SK Fire Safety’s management, acquired 100% of SK FireSafety

in July 2014 . For the full presentation of the company and the interview with Ewald Draaijer, CEO of SK

Fire Safety, see page 55 .

3 PROCEEDS ACROSS ALL FUNDS 2005 – 2014

(in €m)

PortfolioACTIVITY

2014 WAS A GOOD YEAR FOR APAX PARTNERS. COMPANIES

IN THE PORTFOLIO TURNED IN STRONG RESULTS. THE FIRM MADE

ONE NEW ACQUISITION AND TWO DIVESTMENT S.

New investments

Follow-on investments

Number of investments

246

2005

3

336

2006

7

261

2007

7

241

2008

5

37

2009

2

210

2010

0

280

2011

2

121

2012

3

214

2013

2

Total investments80

2014

1


Portfolio activity

Value creation

Apax Partners focuses the growth strategy of its portfolio companies on three speci! c areas: internationalisation, build-ups and digital

transformation. Generating growth sometime requires ! nancial optimisation. Of course, implementing a strategy is possible thanks to the

trust-based relationship between company management and the Apax Partners teams.

Build-ups

W i t h more t h an 7 0

operations between 2012

and 2014, build-ups are

an essential strategy

to accelerate the growth of our portfolio

companies. In addition to the many

acquisitions listed in the international

section, some examples of 2014 build-ups

within our portfolio companies included:

• ALAIN AFFLELOU continued to screen

acquisitions in Southern Europe;

• Gfi Informatique made four acquisitions

in France during the year generating an

additional €60m in revenues;

• THOM Europe acquired a network of

31 stores in France;

• TEXA successfully developed a newly

acquired company that specialis es

in “building damages” expertise, and

completed another acquisition in 2014.


Entrepreneurs know that oI en the most promising growth opportunities can be found overseas. We have strong experience

in implementing an international strategy in our portfolio companies and continued to leverage that experience in 2014 to

accelerate growth at our portfolio companies:

• Albioma entered the Brazilian biomass

electricity market with the acquisition of a

60MW cogeneration plant;

• Altran completed two signi f icant

acquisitions in China and Germany/

Austria to strengthen its presence in these

countries;

• Amplitude focused its international

development on six promising countries. It

acquired a distributor in Brazil, developed

its newly acquired distributor in Australia,

initiated FDA registration of its products in

the US, created a joint venture in Japan

and launched operations in Switzerland

and in Belgium;

• Europe Snacks signed a major contract

with the largest Spanish food retailer and

continues to screen potential build-ups in

Europe;

• Groupe I NSEEC opened a training school

in China and acquired a school in

Switzerland;

• Vocalcom opened a US subsidiary to

develop its presence in the world’s largest

contact center market.

• Groupe INSEEC, which made d igital

m arketing one of its key areas of strategic

focus and started developing its on-line

education services;

• TEXA used digital technology to improve

both quality of its service to insurers and

productivity of its organization;

• Retail companies THOM Europe and

ALAIN AFFLELOU continued to grow their

e-commerce businesses;

• Gfi Informatique developed new services,

including cloud solutions for mobility

and payments, and big-data business

intelligence solutions for its blue chip

customer base;

• Infopro Digital’s digital business now

accounts for 61% of its direct margin

(excluding trade-shows and events) due

to the launch of regular i nternet and digital

initiatives.

Digital Transformation

Businesses that want to succeed must change their

models to meet the expectations of the millennials

and embrace the major transformation that implies.

In France, this generation will constitute half of the

labour force by 2020 and its entrepreneurs will be the people Apax

Partners will support in the future. The hyper connectivity of this

generation has an impact on their consumption and how they act

as employees. It is our mission to help prepare dynamic French

SMEs to take advantage of this change by supporting their digital

transformation. Some examples of digital transformations within

our portfolio companies in 2014 included:


Portfolio activity

Relationships based on trust

We are strongly committed to the entrepreneurs that we back. When these entrepreneurs

choose to partner with us they choose a committed, supportive and stimulating investor

that will share their vision, their strategy and their long term development.

They said it in 2015

“Our relationship is based on trust and is

extremely professional. They have helped me through

the different stages of our strong growth, ensuring

that the company felt supported and secure. Affording

Apax Partners the option to challenge our strategic

ideas always yielded extremely rich results. Because

of all that, I am thankful to Apax Partners and the

teams with which I have worked.”

Olivier Jallabert, CEO of Amplitude

“Interaction with the Apax Partners’ team is practical, rapid and fruitful.

Our investment-projects, whether ! nancial, technological or in human resources

have received Apax Partners’ full support. We really feel supported to remain

“one step ahead” and so build the long-term future of Groupe TEXA .”

Bruno Vesval C hairman, and Pierre-Antoine Lagé, M anaging D irector of TEXA

“I have found at Apax Partners’ people who are

in complete agreement with our media digitalis ation

strategy. Their knowledge of this digital transformation

allows us to invest aggressively. This is a strong

differentiating factor for a fund.”

Christophe Czajka, founder and C hairman of Infopro Digital

“We have been working together for a year. I wanted to thank you

and tell you how much I enjoy sharing this experience and INSEEC’s

projects with the Apax Partners’ team. I had a good feeling from the

start and it hasn’t diminished.”

Catherine Lespine, CEO of Groupe INSEEC

“The most successful people in the world didn’t make it on their

own. Apax Partners’ team is the best partner I have found. I strongly

recommend them to anyone.”

Anthony Dinis, founder and CEO of Vocalcom

“According to a famous saying: performance matters for only as long

as it lasts. What can I say then about our almost-intimate relationship with

Apax Partners, which has lasted 15 years! Always with us, especially in

the testing periods, I have always appreciated the regular contact and the

advice of Apax Partners’ teams.”

Frédéric Poux, President of the Executive Board of ALAIN AFFLELOU

“The management team of our medium size

company is naturally under permanent pressure

from short-term pressing challenges. Thanks to

Apax Partners and their stimulating inputs, we can

think out of the box and go faster and further”.

Jacques Pétry, CEO of Albioma

“This ! rst year alongside Apax Partners has validated my decision

to trust them to accompany the transformation of Europe Snacks from a

national champion into a European leader. The breadth of their vision, their

exacting standards and speed of execution, all coupled with their unwavering

con! dence, have contributed to a partnership that is aligned to the interests

of everyone.”

Christophe Fenart, CEO of Europe Snacks

“Apax Partners has always been by our side in each key moment

in the development of the company. The team includes both reliable

and knowledgeable business partners that trust and support

the management, but who also knows when to challenge us! It is

always pro! table to discuss the strategic moves of the company

with the team.”

Eric Belmonte, Chairman of THOM Europe


Financial optimisation

The first and fundamental objective of

any ! nancial optimisation is to enable our

portfolio companies to pursue an internal

or external growth opportunity. That could

include obtaining complementary equity to

! nance a strategic development, conducting

a structural build-up that requires rethinking

the company’s entire ! nancing, or providing

flexibility when existing conditions are

impeding the ! rm’s development.

Amplitude – Refi nance to support an annual growth of 25%

Amplitude set up a unitranche debt of €65m to

support the accelerated growth pro! le of the

company. This operation will ! nance overseas

subsidiaries, notably in Brazil, Australia, and

the US. It will also allow the company to win

new customers, providing them with implants

and instruments, in key markets like France.

Finally, the transaction will allow Amplitude to

continue its efforts in innovation, in particular

the development of new navigation systems

for surgeons and 3-D printed patient speci! c

instrumentations.

O ur new debt expert

ANNICK BITOUN

What is your vision of a

debt manager’s role?

The best debt agreements

are partnerships, where the

ambition of a company, its

equity backer and its lender are

in harmony. My goal is to create

those partnerships by sourcing

solut ions suited to each

transaction’s particularities of

size, complexity and the needs

of the enterprise.

I aim to create relationship

with lenders that are equitable

and based on mutual trust.

It is always my aim that they

should endure over numerous

transactions.

What are the dominant

characteristics of the

current debt market?

T h i s i s a p a r t i c u l a r l y

advantageous moment in

which to raise debt. Rates are

historically low and there are

relatively few transactions. The

result is that lenders are actively

seeking new opportunities and

ready to support refinancing

for companies that have good

growth opportunities. There is

also a growing diversity of actors

in the debt market, meaning

there is greater opportunity to

! nd a partner whose pro! le suits

each transaction.

After more than a decade

working for lenders, what

led to you to join Apax

Partners?

In my role as a banker I was

often involved in negotiations

with Apax Partners and was

always impressed by their

business philosophy, vision

and professionalism. When the

opportunity arrived to switch

sides of the table I had no

hesitation!

APAX PARTNERS, IN SEPTEMBER, EXPANDED ITS TEAM AND EXPERTISE

WITH THE APPOINTMENT OF ANNICK BITOUN, THE COMPANY’S FIRST

SPECIALIST DEBT MANAGER.

# FOCUS

“This is a particularly advantageous moment

in which to raise debt.

Rates are historically low and there are relatively

few transactions.” Annick Bitoun

“Amplitude’s international expansion includes

Brazil, Australia and the United States.”

Portfolio activity


ALAIN AFFLELOU – Flexibility to fi nance growth

In May 2014, the group refinanced its senior and

mezzanine facilities with €440m of high-yield notes.

This re! nancing allowed the group to lower the overall

weighted cost of debt to 6.1% from 7.9%, delivering

almost €8m of annual cost savings. The new ! nancing

structure also provides greater $ exibility to fuel organic

and potentially external growth by removing certain

restrictions inherent in the previous facilities.

THOM Europe – Unlock store network expansion

The group raised €347m in high-yield financing in

2014. In addition to re! nancing the acquisition debt

and repaying part of the shareholder s’ bonds, this

re! nancing will enable THOM Europe to pursue its

store-network expansion, which had been constrained

by the onerous nature of the acquisition debt

documentation requirements. The group now has full

access to the cash generated by the operations to fund

new stores openings. In the short-term, this re! nancing

enabled THOM Europe to acquire 31 stores from a

regional chain.

General Manager and

CFO of THOM Europe

JEAN-PIERRE CHANTREL

Why did you choose to refi nance your debt in 2014?

It was the right time for the business and a good time in the

debt market. THOM Europe was created from the combination

of Histoire d’Or and Marc Orian in 2010. Our ! rst task was

to integrate the businesses, train the teams and position the

brands. With that work completed, we were ready to move to

a development phase for which our debt arrangement wasn’t

suitable. The documentation requirements were too onerous

and would have taken up time and energy better focused on

expanding the business. And rates had come down since 2010.

How did you fi nd the process of refi nancing?

It was smooth, though a lot of work. We launched the process

at the end of April, quickly found a bank in Goldman Sachs

that was willing to take the lead, and by July 18 the new loans

were in place. It was a real team effort between the banks, our

lawyers, our shareholders and our in-house team. And we very

much appreciated the support we received from Apax Partners

team to prepare the new documentation and the roadshow.

What are your plans now that you have the new

debt in place?

The key bene! t of the re! nancing is the $ exibility it gives us to

pursue our growth plans. Very soon after we secured the loan

we added 31 new outlets with the acquisition of a small rival in

the South of France. We will continue to look for acquisitions

and pursue our objective to develop a greater presence in

city-centers.

THOM EUROPE, FRANCE’S LEADING

JEWELRY RETAILER, REFINANCED

ITS DEBT IN JULY WITH €347M

OF HIGH-YIELD NOTES, SECURING

A MORE FLEXIBLE FINANCIAL

PLATFORM FOR ITS AMBITIOUS

EXPANSION PLANS.

# FOCUS

“Our refi nancing deal was a real team

eL ort between the banks, our lawyers,

our shareholders and our in-house

team. And we very much appreciated

the support we received from Apax

Partners team to prepare the new

documentation and the roadshow.”

Jean-Pierre Chantrel

“New fi nancing helped THOM Europe

acquire 31 stores.“

“Refi nancing will save

ALAIN AFFLELOU €8m a year.“

Portfolio activity


Operating performance

The 15 companies within the unrealised LBO and growth capital portfolio posted a 9.2%

increase in their aggregate EBITDA. This performance can be benchmarked against the

aggregate EBITDA of the 35 non-! nancial companies included in the CAC 40, which

posted a 1.2% decrease in their aggregate EBITDA.

Reasonable and stable leverage ratios

The average debt multiple of the portfolio (represented by the ratio of total net

debt to EBITDA) was stable at 3.74x at the end of 2014, against 3.75x at the end

of 2013 and 3.7x at the end of 2012. The LBO debt multiple averaged 2.82x, while

the average operating debt multiple was 0.91x.

Regarding the repayment schedule, amortising debt (tranche A) represented 6.4%

of the total LBO debt, while the remaining 93.6% is bullet debt. The portion of LBO

debt with maturity dates prior to 2017 represented only 3.17% of the total.

PortfolioPERFORMANCE

“The portfolio’s average

debt multiple

at the end of the year

remained stable at

3.74x, roughly the

same level as in 2012

and 2013.“

3 CHANGE IN AGGREGATE EBITDA

CAC 40 companies (excluding financial institutions)

Apax Partners’ LBO & growth capital portfolio

+15%+18%

2010

+6%

+17%

2011

-1%

+8%

2012

-4.6%

+11.3%

2013

-1.2%

+9.2%

2014

+14%

+82%

5 years combined

3 LEVERAGE RATIO

(Net debt / Last 12 months EBITDA )

3.8x

December2011

3.7x

December2012

3.8x

December2013

3.7x

December2014


Gross portfolio return

Gross portfolio return (GPR) measures the change over the year in portfolio valuation,

including both realised and unrealised value. It is calculated on a mark-to-market basis

and is expressed as a percentage of the opening portfolio value.

In 2014, the 9.2% EBITDA growth of our 15 LBO/Growth companies allowed Apax

Partners to generate a GPR of 17% across all its funds, compared with a GPR of

23% in 2013.

“Apax Partners

unrealised portfolio

has continued

to demonstrate sales

and earnings growth

over 2014.“

Eddie Misrahi

17% gross portfolio return

Portfolio performance

3 GROSS PORTFOLIO RETURN (in %)

42

2005

50

2006

73

2007

-40

2008

20

2009

5

2010

8

2011

25

2012

23

2013

17

2014


3 STRONG OUTPERFORMANCE OF APAX FUNDS COMPARED TO STOCK MARKETS: 2000 to 2014 (1)

Our growth and sector-focused strategy

is coherent with our investment objective

of maximising return multiples, while

maintaining internal rates of return within

the top-quartile of our peer group.

The strategy has proven successful across

the fully-invested funds managed by Apax

Partners. Over the past three years the

! rm has completed a signi! cant number of

divestments, accruing more than €1.1bn in

proceeds.

In this section, fund performance is first

presented globally for all funds invested

since August 2000 and then individually for

each fund managed by the ! rm since 1990.

Global Performance

Fund performance ! gures are based on results

at 31 December 2014 and are benchmarked

against key stock indices over the period from

2000 to 2014.

The chart below presents the performance

of all funds since August 2000, the date at

which Apax France VI started investing. The

performance is measured as the IRR (internal

rate of return) of all investing and divesting

cash-$ ows, using the portfolio value at the end

of December 2014 as the terminal value. The

IRR of 19% is compared to the performance

of various indices applying the same stream

of cash-flows over time. This allows the

performance of Apax Funds to be compared

to investments in each stock market index,

based on the premise that the same amounts

had been invested and divested.

19%

Apax France VI,VII and VIIIGross IRR (2)

0.6%

CAC 40

1.3%

S&P 500

2.5%

MSCI World

2.8%

MSCI Europe

4%

FTSE 100

(1) Source: Euronext, MSCI, Yahoo! Finance.

(2) Gross IRRs do not reß ect management fees, carried interest, taxes or transaction costs and other expenses borne by investors that reduce net returns

Note: return Þ gures for public indices generated using gross cash ß ows for Apax France VI, VII and VIII. The analysis assumes that cumulative drawdowns

are invested in and distributions are withdrawn from the index.

“Divestments have garnered €1.1 billion

in the last three years.“

Fund PERFORMANCE


Fund performance

Performance per fund

Apax CR IIIApax CR III’s performance was achieved

through investments in renowned companies

such as Aigle, Frans Bonhomme, Nicox, and

Sephora. Other successful investments

included Celio, Coletica, Ef! k GSI, Urologix,

and Xpedite.

Apax France IVApax France IV’s performance was achieved

through investments in high-growth

companies such as GiFi, Histoire d’Or and

Prosodie. Other investments included Dagard,

Erard, Lehmann, and The Future Network.

Apax France VApax France V’s performance was the

result of major investments in companies

including ALAIN AFFLELOU, Hubert, Séché

Environnement. Other investments included

BFM, Travelprice.com/Lastminute.com,

Symphony on Line, CCMX/Cegid and Rue

du Commerce.

Apax France VIApax France VI’s performance, to date, is

the result of investments in market-leading

companies, such as Antalis-TV, Aprovia,

Arkadin, Cartesis, Medimedia, Outremer

Telecom, Parkeon and Vizada (TMT); Frans

Bonhomme (Retail & Consumer); Alma

Consulting Group, Corevalve and Vedici

(Services). At the end of 2014, the fund is

still invested in Albioma (Services).

Apax France VIIApax France VII (€900m) started investing

in November 2006. By the end of 2014, six

investments had been sold (Buy Way Personal

Finance, Equalliance, Faceo, Maisons du

Monde, Prosodie, U10) and 54% of the fund

had been returned to investors. The fund is

still invested in eight companies, including

Altran, G! Informatique and Infopro Digital

(TMT); ALAIN AFFLELOU, Groupe Royer and

THOM Europe (Retail & Consumer); Capio and

Unilabs (Services).

Apax France VIIIApax France VIII (€704m) closed in 2011.

By the end of 2014, more than 60% of the

fund was invested in seven companies

covering all our sectors of specialisation:

Amplitude, Europe Snacks, Groupe INSEEC,

SK FireSafety Group TEXA, and Vocalcom.

One investment has been sold: Codilink.

3 PERFORMANCE PER FUND

Launched Investment period Fund size Net Multiple Net Distribution Net IRR

CR III * 1990 7 years €96m 2.6x 2.6x 15.7%

Benchmark 1st quartile 2.3x 1.9x 15.9%

Apax France IV* 1996 3 years €82m 2.0x 2.0x 21.6%

Benchmark 1st quartile 1.8x 1.7x 17%

Apax France V* 1998 2 years €300m 1.2x 1.2x 2.7%

Benchmark 1st quartile 1.4x 1.2x 8.4%

Benchmark median 1.0x 0.6x -25%

Apax France VI 2000 6 years €700m 1.7x 1.5x 11.7 %

Benchmark 1st quartile 1.8 x 1.6 x 18.2 %

* Funds fully realised

Source: Apax Partners / ThomsonONE.com database / Cambridge Associates.

• Gross multiple refers to the total

proceeds received by a private equity

fund, before management fees and

carried interest, and the residual value

of the investments, as a percentage of

the committed capital.

• Gross IRR (internal rate of return) is the

return on all investments made by a fund

in its portfolio companies. It is calculated

as an annualised effective compounded

rate of return using monthly cash ! ows

to and from a fund before management

fees and carried interest, and includes

the residual value of the fund’s assets as

terminal cash ! ow to investors.

• Net multiple is equivalent to the gross

multiple net of management fees and

carried interest.

• Net IRR is the return earned by investors,

net of management fees and carried

interest. It is calculated as an annualised

effective compounded rate of return

using monthly cash ! ows to and from

investors, and includes the residual value

of the fund’s assets as terminal cash ! ow

to investors.

• Top quartile refers to the point at which

25% of all returns in a group of private

equity funds are greater and 75% are

lower (top-quartile performers are private

equity funds whose return is above top

quartile).

• Median refers to the point at which 50%

of all returns in a group of private equity

funds are greater and 50% are lower.

DEFINITIONS OF PERFORMANCE INDICATORS



PORTFOLIO COMPANIES AT 31 DECEMBER 2014

By selecting Apax Partners, entrepreneurs are choosing

a committed, supportive and stimulating investor who will:

share their vision and strategy;

provide long-term support.

Snapshot

TMT (Technology-Media-Telecom ) 40

Retail & Consumer 44

Healthcare 48

Services 51


Gilles Rigal and Thomas de Villeneuve

Philippe Salle (Chairman and Chief Executive of the Altran group)

Altran’s strategic objective remains to

focus on developing its high value added

business services and further develop

operations in growth geographies,

both organically and through selective

acquisitions.

On 19 January 2015, the Board of

Directors of Altran announced that

Philippe Salle, Altran’s CEO since June

2011, had decided to take on new

professional challenges and that he would

not seek a renewal of his appointment

as a D irector during the Annual General

Meeting to be held on 30 April 2015. He

will remain in his position until this date.

Altrafin Participations, a company

controlled by Apax Funds, is a major

shareholder of Altran, with 17% of its

capital and sligh tly below 30% of its

voting rights.

Created in 1982, Altran is the Global

leader in innovation consulting. The

company employs more than 18,000

engineers, operates in 20 regions, is

listed on Euronext Paris and is part of

the SBF 80 index.

2014 has been a very positive year for

Altran. The company posted revenues

of €1,756m, up 7.6% over 2013 on

a reported basis and up 3.5% on an

economic basis. Altran posted EBIT of

€165m in 2014, an increase of 15.1%

over 2013, driven by both organic growth

and recently completed acquisitions.

Altran acquired Foliage, a US-based innovative-product development company. This major and strategic acquisition will allow the group to further address the US market, which is the most signifi cant market in outsourced Research & Development. It will also reinforce Altran’s offer in embedded software, a core business of Foliage and a tactical development area for Altran. Finally, with about 200 engineers in India, Foliage’s acquisition will signifi cantly increase Altran’s delivery capacity in India.

altran.com

Strategic acquisitions

made the headlines in the

Technology, Media & Telecom

portfolio.

MAJOR EVENT OF THE YEAR

TMT (TECHNOLOGY-MEDIA-TELECOM )

€1,756mrevenues

15.1%EBIT growth over 2013


I te f in Par t ic ipat ions and In fo f in

Participations two companies controlled

by Apax Funds and Boussard & Gavaudan

jointly hold 78.4% of the capital of Gfi

Informatique a company listed on the Paris

S tock E xchange.

G# Informatique is the fourth largest French

IT services # rm with a leading position in

France and Southern Europe. It employs

over 10,000 people. The company has two

core businesses: IT services and software

products. It is organis ed by sector-focus

and its six main industry sectors are

banking, telecom, public sector, energy/

utilities, industry/aerospace/transport, and

distribution services.

Founded under the guidance of CEO,

Vincent Rouaix, the plan to transform

G# Informatique from a “body shopping”

company to a value-added technology

group is now achieved.

2014 was a strong year for G# Informatique ,

notable for its solid momentum in the

French IT Services market, where sales

grew to €804m, up 8.3% over 2013.

The company continued to increase

its software based revenue, launched

a new account management strategy

for its TOP35 clients, developed new

differentiating offers (cloud solutions,

digital offers and big data), and continued

its strong M&A activity.

Gfi Informatique is well positioned to

build on its record of growth and margin

improvement.

g fi .fr

€804msales (+8.3% over 2013)

€52mEBIT (+16% over 2013)

TMT

Gfi Informatique acquired ITN, a leading management-software editor that has around 110 employees and €15m of annual revenues. ITN designs, develops and markets insurance solutions for the life and non-life businesses of insurers and bancassurers, mutual companies and brokers in France and Europe. The bolt-on purchase is part of the “ IP 20” plan announced at the beginning of 2014, which aims to increase the group’s “ Solutions” sales to 20%

of its total turnover in three years, up from 12%, and position Gfi Informatique higher up the value chain. As a result of the acquisition, Gfi Informatique expects to boost sales at its software business by close to 20%. Because external growth had recently focused on services (Ares, Thalès BUS, Cognitis notably), the purchase of ITN is the first significant software acquisition for Gfi Informatique in France since Apax Partners’ investment.


Vincent Rouaix (CEO of Gfi Informatique )


Apax Funds hold the majority of Infopro Digital, a leading provider

of professional information.

Infopro Digital is one of the few B2B information players to have

successfully transitioned from print to digital. Digital business now

represents 61% of its direct margin (excluding trade-shows and

events). The company is also an ef# cient acquisition platform,

having completed more than 30 acquisitions since 2001.

infopro-digital.com

61%of direct margin is digital

(excluding trade-shows and events)

21%annual growth since acquisition

2014 was Infopro Digital’s first full year following the acquisition of Groupe Moniteur in December 2013. The corporate governance of the group was modifi ed, Christophe Czajka, CEO, appointed Julien Elmaleh as Managing Director. The objective is to focus on accelerated investments overseas while generating organic growth in the Group.


Christophe Czajka (CEO and founder of Infopro Digital)

TMT


Apax Funds hold a majority stake in

Vocalcom, a software and technology

provider for customer contact centers and

call centers.

Vocalcom’s global software offering allows

companies to manage their customer

contact center, improve their contact

center’s customer service quality, and

optimis e the productivity of customer

service teams. Vocalcom also enables

and brings major innovations to enhance

customer service management on

e-commerce websites or at points-of-

sale. Vocalcom employs 210 people and

generates 53% of its sales outside France,

particularly in fast-growing emerging

markets such as Brazil and North Africa.

2014 has been a transforming year

in which Vocalcom continued i ts

positive evolution both in terms of

management renewal and business

model migration towards SaaS/Cloud.

The company posted revenues of

€36.3m down 4% on 2013. The product

mix continued to evolve favourably

with software and related services flat

compared to last year and resale of

hardware down by 17%. That is in line

with the strategy to progressively phase-

out this low margin offering.

Thanks to its innovative software solutions,

the company is ideally positioned to

capture strong industry fundamentals and

realis e its growth potential in 2015.

vocalcom.com

550,000daily users

3,500call centres

Vocalcom signed its first private cloud governmental project with Abu Dhabi Distribution Company (ADDC), which is responsible for distributing high-quality water and electricity services in the emirate of Abu Dhabi. The 5-years contract provides 24/7 managed services for 500 agents. Vocalcom’s software provides best-in-class agent workspace by integrating all core business,

GIS, knowledge management and business process guidance. The project will transform ADDC’s emergency centre into a multi-channel customer experience, thus perfectly integrating ADDC’s smart city strategy. It will also improve customer experience and quality assurance through live speech analytics combined with big data and historical speech analytics.


Anthony Dinis (CEO and founder of Vocalcom)

TMT


E-commerce

reinforcements and strong

partnerships and licensing

made the headlines in

the Retail & Consumer portfolio.

RETAIL & CONSUMER

Bruno Candelier and Franck Hagège

12%revenue growth

21,000 tons produced in 2014

In 2013, Apax Funds acquired a majority

stake in Europe Snacks, the leading French

private-label player in the savory snacks

market.

Europe Snacks develops, produces and

markets about 200 product references of

savory snacks in three product ranges:

extruded products, stacked crisps and

crackers. It makes about 21,000 tons

of savory snacks per year from its four

state- of-the-art sites, located in Vendée

(France).

Europe Snacks achieved sales of €95m

over 2014, up 12% on 2013. In December,

it signed a large contract with a major

European food retailer as part of its

international development.

europesnacks.com

Europe Snacks developed, in 2014, a new segment of activity with the introduction of its fi rst licensed products. The launch of licensed products, initially in partnership with the football team PSG, enables the group to add diversifi cation away from its traditional activity of producing products under food retailers brand names.


Christophe Fenart (CEO of Europe Snacks)


RETAIL & CONSUMER

In 2011, ALAIN AFFLELOU launched a

hearing-aid activity on the same model

as the optical activity. While still in

start-up mode, the number of hearing-

aid points of sales, as of 31 December

2014, was already 137 across France

and Spain, mainly under a franchise

model.

For its # nancial year ending 31 July 2014,

optical sales reached €323.9m, down

1.6% year-on-year, and the Group

opened 26 stores.

In 2012, Apax Partners and Lion Capital

joined forces to acquire a majority stake

in ALAIN AFFLELOU alongside the

founder and namesake Alain Af! elou

and the management team.

Founded in 1972, ALAIN AFFLELOU is

Europe’s leading network of franchise

optical stores. At the end of 2014

the group operated an international

network of 1,171 stores in 11 countries.

alaina6 elou.com

The Affl eloustore.com store was launched in March 2014. The launch of this e-commerce site is the fi rst stage of the group’s deployment of an innovative multi-channel strategy.

In November 2014, the group agreed a three-year collaboration with the actress Sharon Stone, who will become the face of ALAIN AFFLELOU. In addition to benefi ting from her global public popularity, the group is proud to support Sharon Stone’s commitment to several charities, notably involved in AIDS research. The screening of an advertisement shot by Luc Besson began in the fi rst quarter of 2015.


Moi c’est Afflelou ! Sharon Stone

Nouvelle Collection optique et solairePrix TTC des montures optiques cerclées de la collection Tonic. Dispositif médical CE. Demandez conseil à votre opticien. Février 2015. RCS Paris 304 577 794.

1,171stores

€323.9moptical sales

Frédéric Poux (President of the Executive Board of ALAIN AFFLELOU)


RETAIL & CONSUMER

Apax Partners and Bridgepoint Capital

joined forces to acquire jewellery retailers

Histoire d’Or and Marc Orian, investing

alongside the management team of

Histoire d’Or and Qualium, the former

majority shareholder of Marc Orian. The

acquisition was completed in October

2010. Apax Funds and Bridgepoint Capital

together hold a majority stake in THOM

Europe.

The combination of the two groups resulted

in the creation of THOM Europe, a leading

jewellery retailer in Europe. The group

operates in France, Italy and Belgium ,

through a network of 566 company-owned

stores, primarily located in shopping

centres. THOM Europe operates three

chains: Histoire d’Or and Marc Orian,

offering mid-range generalist jewellery,

and TrésOr, offering “everyday low price”

jewellery.

For # nancial year ending on 30 September,

2014, THOM Europe’s sales were €354m,

up 3% on 2013. Sales performance was

driven by the opening of 45 new stores

over the last twelve months and the ramp-

up of e-commerce sales following the

website launch in April 2013.

tresor-bijoux.fr

marc-orian.fr

histoiredor.com

€354msales

566company-owned stores

Histoire d’Or, the group’s main brand and a reference actor among generalist jewellery retailers, had a strong year marked by the great success of its new e-commerce site. Its sales continue to grow robustly, driven by a multi-channel strategy founded on the e-commerce site and its 370 boutiques.


Eric Belmonte (CEO of THOM Europe)

# Read the interview with Jean-Pierre Chantrel, General Manager and CFO of THOM Europe page 33.


RETAIL & CONSUMER

The group designs, sources, markets

and distributes branded and unbranded

footwear products for the mass-market. It

posted sales of €282 m in 2014, up 6 % on

2013. The increase in sales was primarily

a result of the growth of the Sport

business unit and notably the strong

success of the New Balance license.

Apax Funds hold 15 % of the capital of

Groupe Royer, a leading brand manager

in the footwear industry. Apax Funds

invested in Groupe Royer in 2007.

grouperoyer.com

2014 was a year of strong growth for the New Balance licens e, which is distributed by Groupe Royer in France, Germany and the Benelux region. This growth, which can now be added to the signifi cant gains made in 2013, has enabled Groupe Royer to signifi cantly increase turnover from the licens e in just two years.


Jacques Royer (CEO of Groupe Royer)

€282 msales

6 %sales growth


Innovation and strategic

international development made

the headlines in the Healthcare portfolio.

HEALTHCARE

more than 500 surgeons in public and

private hospitals across France via a

unique network of commercial agents.

Internationally, Amplitude established

strong relationships with independent

distributors early on, and now generates

over 25% of its revenues in 30 countries

outside of France.

Amplitude demonstrated robust growth

in the # rst half of its # nancial year ending

June 30, 2015. Sales were up 27%

on the same period in 2014. Exports

performed very well up 102% over

the # rst half of 2014, driven by strong

results from its Australian and Brazilian

subsidiaries and ongoing organic growth

in selected European countries. Over

the last 12 months, Amplitude achieved

significant milestones towards the

realis ation of its value creation plan by

refocusing on selected export markets

and through ongoing innovation that

resulted in the successful launch of three

new implants.

For 2015, the company plans to maintain

a double digit growth as it bene# ts from

a full-year contribution from its new

subsidiaries and the commercial success

of new knee products.


Amplitude, France’s leading hip and

knee prostheses specialist and a strong

challenger to US majors. The remaining

capital is held by management.

Founded in Valence (France) by Olivier

Jallabert in 1997, Amplitude designs,

manufactures, and markets a complete

range of high quality hip and knee

prostheses. Over the years, Olivier has

assembled a team of highly-seasoned

executives to build a differentiated

business model. This model combines

reliance on outsourcing and tight control

over strategic competencies (R&D,

quality control).

Today, Amplitude provides and guarantees

the highest standards of service to

Amplitude launched a new subsidiary in the fast growing extremities market (foot and ankle). Sales began in France in July 2014, and products were also successfully registered in the US, where Amplitude commenced sales in late 2014 through a white-label distribution agreement. This new business, created with industry veterans, is the fruit of two years of research and development.

amplitude-ortho.com

27%sales growth

102%export sales growth


Olivier Jallabert (CEO and founder of Amplitude)

Bertrand Pivin


Apax Funds hold 11% of the capital

of Capio, a leading provider of private

healthcare services in Europe. Capio was

acquired in 2007 by funds managed by

Apax Partners SA, Apax Partners LLP and

Nordic Capital. Following this acquisition,

Capio shares were withdrawn from the

Stockholm Stock Exchange. In February

2011, the Spanish subsidiary Capio

Sanidad was sold to CVC Capital Partners.

Capio is one of the largest independent

providers of acute care services, and is

active in both the provision of privately

and publicly funded care. The c ompany

is unique within the private acute services

sector in having a pan-European footprint,

and enjoys leading positions in France

(where it is No.3), Sweden (No.1) and

Norway (No.1).

Capio continues to perform in line with

its plan, developing its leading positions

in Sweden, Norway and France. The

company achieved 3.7% organic growth

in 2014, mainly driven by positive volume

development. Revenues reached €1,444m

for the year, representing 1.5% year-on-

year growth (including acquisitions) .

Going forward, Capio will focus on

optimis ing its product mix while improving

cost structure.

capio.com

HEALTHCARE

Capio continues to invest in France and launched a program to construct new clinics that will result in the opening of three establishments by 2017. In Bayonne, the 270-bed Belhara clinic will be built at a cost of €70m . Near Toulouse, the Croix du Sud clinic will cover 33,000 square meters and will employ 700 staff and 150 doctors. The €100m clinic will include 29 operating theatres, an emergency service and a maternity ward. Finally, Capio will create a major medical branch, with 700 beds, near Lyon by regrouping six existing clinics at a cost of €150m .

Capio’s treatment strategy is based on improving the quality and effectiveness of modern medicine. Advances in treatment allowed the Swedish group to carry out 56% of its procedures on an outpatient basis across its 25 French establishments, well below the national average of 39%. Thus, at each new facility, the number of beds has been reduced by 20% to 30%. This innovative new model responds directly to the challenge of reducing healthcare spending.


179hospitals and care centers

4.6 millionpatient visits in 2014

Thomas Berglund (President and CEO of Capio)


Since the company has publicly traded

debt securities, only publicly available

information will be disclosed in this

report. During the # rst nine months of

2014, Unilabs generated revenues of

€451m . Excluding acquisitions and

foreign exchange movements, organic

sales grew by 4% year-on-year . Strong

volume growth, particularly in the

Imaging Business, drove the positive

revenue performance.

Going forward, Unilabs will maintain its

focus on productivity and cost savings

to provide quality driven diagnostics at

a competitive price.

Apax Funds hold 11% of the capital of

Unilabs, a leading pan-European, quality-

driven diagnostics company.

Unilabs provides laboratory and radiology

services to public and private healthcare

providers, county councils, insurance

companies, directly to outpatients as well

as to the pharmaceutical industry, and

clinical research organis ations. Unilabs is

active in 12 countries with strong market

positions in Switzerland, France, Iberia

and the Nordic countries.

unilabs.com

The management team was significantly strengthened in 2014 with the appointment of a new CFO, a new CEO France and a new CEO Switzerland. Karl-Erik Clausen, the new CFO, will contribute his business vision and healthcare expertise while unifying Unilab’s reporting. Patrice Ferran, new CEO France, and Andreas Gattiker, new CEO Switzerland, will take on the challenges faced by these two major countries for Unilabs: acting to develop commercial activity, address prices cuts and improve productivity.

171laboratories and radiology centers

101 milliontests in 2014

HEALTHCARE


Jos Lamers (CEO of Unilabs)


International expansion

led the way in the services sector

portfolio .

SERVICES

and €129m in EBITDA, up 5% on

2013. This performance has been

driven by excellent results at its newly

acquired Brazilian operations and solid

performance of solar activities, which

outweighed the negative effects of the

planned decrease of fixed premiums,

the normalis ation of the calling rate at a

peak power plant and several technical

incidents in its thermal activities.

After one year of intensive work, Albioma

entered the Brazilian market in March

2014 with the acquisition of Rio Pardo

Termoelétrica. The French Energy

Regulation Commission (CRE) approved,

in December 2014, a 30-year contract for

the supply of electricity from the future

power plant in Martinique. Albioma

also won a tender for a peak turbine-

plant in La Réunion. This peak plant is

51%-owned by Albioma, has a 25-year

contract with EDF and is expected to be

operational in 2016. The new facility will

be the # rst French peak plant operating

mainly with biomass.

We have con# dence in Albioma’s outlook

and value creation potential, given the

extremely strong resilience of its business

model in the current environment, as well

as its strong management team and the

upside potential in its share price.

Apax Funds and Altamir hold 42.5% of

the capital of Albioma, both directly and

through the holding company Financière

Hé lios.

Albioma is a leading designer and

operator of power plants in France,

Mauritius, and Brazil with a strong focus

on renewable energy. The company has

world-class expertise in biomass and

significant operations in solar energy,

with a total installed capacity of 700 MW.

The company is listed on the Paris S tock

E xchange.

Albioma reported a strong performance

for 2014. For the year ending 31

December, 2014, Albioma posted

€354m in revenues, down 3% on 2013, albioma.com


Albioma acquired RioPardo Termoelétrica, a cogeneration unit in Brazil, a country that is the group’s international priority. The transaction made Albioma the first company to assume responsibility for the outsourcing of a Brazilian sugar mill’s energy production, thus confi rming its status as a strategic partner for the sugar industry. After this successful fi rst international investment, Albioma is in active discussion with other sugar companies in Brazil to acquire or build cogeneration units.

€354 mrevenues

€129mEBITDA

SERVICES


Jacques Pétry (CEO of Albioma)

Bertrand Pivin and Monique Cohen


of advising and providing executive

education for corporates and offering a

Career Center in China for students and

alumni of the group. The Groupe INSEEC

also strengthened its partnership with

China, signing two agreements: one with

the Chinese Ministry of Culture to enable

Chinese students to pursue a six-month

double-training programme in France and

China; and the second with the Jiaotong

University for an executive programme

in China. Groupe INSEEC also opened

a new location in Switzerland, in 2014,

with the acquisition of management

school CREA Genève. The purchase

will enable Groupe INSEEC to develop

projects in the digital realm and in luxury

goods management, in cooperation with

the International University of Monaco.

Finally, Groupe INSEEC announced the

creation of a new San Francisco-based

campus, which is scheduled to open in

April 2015.


Groupe INSEEC, the leading for-pro# t

post-secondary education provider in

France, with close to 15,000 students

and a large alumni network.

The Groupe INSEEC operates 12 colleges

in France (Paris, Bordeaux, Lyon, and

Chambery) and abroad (Monaco, London,

Chicago, Geneva, Shanghai). It offers

students a broad range of programmes in

business and communications, from non-

degree courses to Doctoral programmes .

Building on its French roots, the Group’s

strategy is to develop world-class

programmes and distinctive expertise

in three domains of management

education: Luxury & Hospitality, Wine &

Spirits, and Communication, Design &

Digital Marketing.

The group’s focus for 2014 was

notably international. Groupe INSEEC

inaugurated the Luxury Business Institute

in Shanghai, targeting its double-objective groupeinseec.com

In 2014 Groupe INSEEC defi ned a clear strategy to position itself along three major axes: Luxury & Hospitality, Wine & Spirits and Communication, Design & Digital marketing. To realis e this ambition, the entire visual brand identity was reviewed with the assistance of global brand specialist Jean-Noël Kapferer, a former HEC professor who joined Groupe INSEEC.

15,400 studentsin 2014, up from 3,500 in 2004

78 nationalitiesrepresented


SERVICES

Catherine Lespine (CEO of Groupe INSEEC)


In 2012, Apax Funds acquired 71% of the

equity of TEXA. The remaining capital is

held by the former controlling shareholders

and the company’s management.

TEXA is one of France’s leading loss

adjusters. Created in 1987 through the

merger of 6 insurance expertise of# ces,

the company has grown through a mix of

organic growth and active consolidation

of its sector. In 2009, TEXA diversi# ed its

activities by acquiring AlloDiagnostic, one

of the few national players in the emerging

real estate diagnostic sector.

In 2014, TEXA posted revenues of €125m,

up 17 % on 2013, mainly due to organic

growth and the consolidation of Groupe

CLE .

2014 was marked by the acceleration of

the digital transformation of TEXA . Having

developed mobile tools to facilitate the

work of our experts in the field, TEXA

launched a video-expertise solution

dubbed “Visiotex.” This tool affords the

group a new way to provide expertise

services that place the insured at the

heart of the operation. Before proceeding

with an expertise by video-conference,

the insured party is able, through an

application downloaded onto their smart

phone or tablet, to add or complete

the relevant information and to enrich

their dossier with photos or other digital

documents.

texa.fr

During 2014 TEXA integrated Groupe CLE, the third largest player in construction expertise. This acquisition positioned TEXA as a multi-sector expert. The integration of the new personnel was successful and created many synergies along the way. On the fi nancial side, Groupe CLE continued to grow and maintain its profi tability.


SERVICES

17%revenue increase

410experts

Pierre-Antoine Lagé (Managing Director of TEXA) and Bruno Vesval (Chairman of TEXA)


Apax Funds hold a majority stake in SK FireSafety Group, a

Northern Europe leader in # re safety.

SK FireSafety Group specialises in the protection of people

and assets in three key areas: sale and maintenance of # rst

intervention products, design and maintenance of # re detection

and suppression systems for high-value assets in critical

environments, and maintenance of cabin safety equipment

speci# c to the aviation sector. The group is headquartered

in Breda (Netherlands), has operations in The Netherlands,

Belgium, the United Kingdom, Norway and United Arab

Emirates, and employs 650 people.

Installed base of more than

750,000 fi re protection units

650 employees

2010 2011 2012 2013 2014

Total 290 317 427 637 650

# NUMBER OF EMPLOYEES

In 2014, SK FireSafety Group implemented a PDA-based service work-order automation system. The engineer receives on his PDA the planning for the week, the route for the day and schematics of the client’s building. Products and spare parts are delivered overnight to the service engineers’ vehicle at his home. The main benefi ts are: shorter travel time, effi cient logistics, knowledge retained in the digital system, and fast and effective invoicing.


SERVICES

Ewald Draaijer (CEO of SK FireSafety Group)


skfi resafetygroup.com

SK FIRESAFETY

SK Products: mobile fi re protection equipment

SK Systems: bespoke fi rst intervention fi re safety systems for commercial sites

SK Oil, Gas & Petrochemicals: specialist fi rst intervention fi re safety Oil & Gas assets

SK Aviation: aircraft maintenance and safety

# ORGANISATION CHART

SK FIRESAFETY GROUP GROWTH

SK FireSafety group ranked 4th in the Dutch Financial Times’ ranking of the fastest growing companies in the Netherlands.

# AWARD

The group has expanded its regional presence to Scandinavia, the Middle-East, Africa and The Caspian in the last three years.

# INTERNATIONAL

CEO of SK FireSafety Group

with EWALD DRAAIJER

What underpins SK FireSafety’s

impressive growth history?

Our success is founded on innovation.

Ten years ago we developed a digital

work ! ow model that radically improved

the ef# ciency of our service engineers

and logistics. That early shift to digital

enabled us to develop key management

skills and systems that are not easily

replicated, particularly given that many

of our competitors still operate on

inef# cient, paper-based systems.

EBITDA margins at our products and

services units are over 20%, double that

of analog competitors. That provides

an advantage in terms of reinvesting

for further growth and positions us to

grow through acquisitions. We know

from experience that our digital model

delivers significant efficiency and

cost bene# ts when applied to analog

companies.

Acquisitions have been a key

growth driver for SK FireSafety,

will that continue?

We are looking at acquis i t ion

opportunities in Europe and they could

come to fruition quickly. Yet we are

not reliant on deals. We have posted

double digit organic growth over the

last couple of years and that can be

replicated.

Our Oil & Gas business is well positioned

to bene# t from the signi# cant demand

for upgrading equipment and # re safety

solutions on the North Sea platforms,

which are old but still in use as

advances in recuperation technology

extends their life.

Our aircraft maintenance and safety

unit, SK Aviation, is also poised to

grow following a complete operational

review and we will pursue acquisitions

of smaller rivals in Europe, the Middle

East and Asia.

Why did you choose to work

with Apax Partners?

From our first meeting, we formed

a really good impression of Apax

Partners. They came with a strong

team, including five partners and

Eddie Misrahi, which was proof of

their interest. Subsequent discussions

were always positive and they clearly

understood our project and philosophy.

With Bertrand Pivin, and the team as a

whole, what you see is what you get

and I really appreciate that.

# INTERVIEW

SERVICES

SK FIRESAFETY GROUP GROWTH

# REVENUES CHART

40

2011

100

2014

200 to 250

Target

[medium-term]

3 €m


15 Portfolio

COMPANIESat 31 december 2014

Sector/companyInvestment

yearBusiness description

2014 revenues

TECHNOLOGY-MEDIA-TELECOM

Altran *

(Altrafi n Participations) altran.com 2008 Global leader in innovation and high-tech engineering consulting €1,756m

Gfi Informatique *(Itefi n Participations & Infofi n Participations)

gfi .fr 2007 Major European player in value-added IT services and software €804m

Infopro Digital infopro-digital.com 2007Leading French provider of professional information services

(databases, websites, trade shows & publications)€288m

Vocalcom vocalcom.com 2011Software and technology solutions provider for customer contact and call centres

€36m

RETAIL & CONSUMER

ALAIN AFFLELOU alainaffl elou.com 2012 Europe’s leading network of franchise optical stores €324 m(1 )

Europe Snacks europesnacks.com 2013 Leading manufacturer of savoury snacks under private label brands €95m

Groupe Royer grouperoyer.com 2007 Leading footwear wholesaler in France €283m

THOM Europe (TrésOr, Histoire d’Or/Marc Orian)

tresor-bijoux.fr; histoiredor.com; marc-orian.fr

2010 L eading European jewellery retailer €354m(2 )

HEALTHCARE

Amplitude amplitude-ortho.com 2011 Designs, develops and markets orthopaedic implants for hips and knees €58m(3 )

Capio capio.com 2006 Leading European private healthcare provider €1,444m

Unilabs unilabs.com 2007Major pan-European company in the fi eld of medical laboratory testing

€451m(4 )

SERVICES

Albioma*(Financière Hélios)

albioma.com 2005 Independent energy producer €354m

Groupe INSEEC groupeinseec.com 2013 Private higher education leader in France €122m

SK FireSafety skfi resafetygroup.com 2014 The fi re safety specialist in Northern Europe €100m

TEXA texa.fr 2012French leader in loss adjustment, specialising in fi re, accident, and

other risks, and in large technical risks €125m

(1 ) Fiscal year ending 31 July 2014 (2 ) Fiscal year ending 30 September 2014 (3 ) Fiscal year ending 30 June 2014 (4 ) First nine months of 2014

* Listed company


Chairman and CEO Eddie [email protected]

Partners Bruno [email protected]

Monique [email protected]

Franck Hagè[email protected]

Bertrand [email protected]

Gilles [email protected]

Thomas de [email protected]

Investor Relations Guillaume [email protected]

Business Development Guillaume [email protected]

Aida Ben [email protected]

Funds Administration Dominique [email protected]

Communication

Coralie [email protected]

Contacts

Editorial Director: Coralie Cornet - Editorial consultant: Paul Whitfi eld - Conception: Labrador Photo credits: Serge Verglas, Bruno Paget, Petri Bakker.

For this annual report, Eddie Misrahi, Partners and Coralie Cornet would like to thank all the portfolio companies’ teams for their participation, availability and enthusiasm.

Let’s stay in touch!

l Apax Partners MidMarket

T @ApaxFrance

www.apax-talks.fr

1 rue Paul Cézanne – 75008 Paris France

+33 (0)1 53 65 01 00

[email protected]

www.apax.fr

Come visit

lApax Partners MidMarket

T@ApaxFrance

www.apax-talks.fr

10-31-2711

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Apax Partners 2014 Annual Report

Economy & Finance

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