gn asi e el R potential sustainably - Apax Partners · 2015. 4. 8. · gn asi e el R potential...

Apax Partners Sustainability Report

Releasingpotentialsustainably

Edition 2

Apax Partners Contents


00 Apax Partners Sustainability ReportApax Partners Sustainability Report02

Long term commitment

Apax Partners has been committed to sustainable investing for many years. Sustainability is embedded in our investment process, to help release the full potential of the businesses in which Funds advised by Apax (“Apax Funds”) invest.

This means that issues relating to sustainability are raised in the early stages of any potential investment opportunity and are monitored throughout Apax’s stewardship of the company.

Sustainability leadership

In 2009, we adopted the Private Equity Council’s guidelines for responsible investment and became a signatory to the UN-backed Principles for Responsible Investment (UNPRI) in 2011.

The Firm aims to lead the private equity sustainability movement, not only by supporting these principles but, more importantly, by putting them into practice.

At the heart of our strategy

Sustainable investing is vital to Apax Partners’ success and it has become an integral part of the investment team’s approach.

Andrew Sillitoe Co-CEO, Apax Partners

Mitch Truwit Co-CEO, Apax Partners

The Firm has made sustainability one of the key layers in the Apax strategy and requires that its investment professionals focus on sustainability issues as one of the standard modules in due diligence.

Sustainable returns

We believe that the firms which are most proactive in their wider responsibility will deliver the best economic returns. Economic returns are not a contradiction to social and sustainable investing; it is one way leading private equity firms will deliver value. Sustainable investment is not only the right thing to do, it also delivers measurably better returns.

Sustainability Report

The Apax Partners Sustainability Report showcases the progress our investment team and portfolio companies of the Apax Funds have made in our ESG journey. We will measure our success by the degree to which we will have passed on our responsibility and duty as shareholders to ensuring that the Apax Funds portfolio companies embrace the integration of corporate responsibility into their day to day business activities.

Chief Executives’ introduction

We believe that the firms which are most proactive in their wider responsibility will deliver the best economic returns.

Committed to delivering value sustainably

Mitch Truwit Co-CEO, Apax Partners

Andrew Sillitoe Co-CEO, Apax Partners

Apax Partners Sustainability Report03

Sustainable investing... What we do

Incorporate ESG issues into investment analysis and decision-making processes

Promote acceptance and implementation of the principles within the investment community

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

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

Work together to enhance our effectiveness in implementing the Principles

Report on our activities and progress towards implementing the Principles

Apax Partners has a well-defined Corporate Responsibility policy which is guided by its fundamental values (Integrity, Stewardship, Community, People and Relationships – see page 15).

Active ownership

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

Pre-investment

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

Post-investment

1 3 5

2 4 6

PRI Principles for Responsible Investment

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

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

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

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

The software facilitates key KPI data collection across ESG areas for each portfolio company. Once established, the system is designed to be self-sustaining and self-governing on the part of the portfolio companies, allowing each to take full responsibility for their respective ESG policies.

Apax investment team members are involved in ESG matters when they are tabled during Board meetings for the companies for which they are responsible. In addition, Apax investment partners are required to sign an annual Statement of Representation attesting that the portfolio company complies with its local regulatory framework and there is no awareness of any sustainability issues. Apax reports to its LPs on a semi-annual basis in a detailed manner and includes a section on latest sustainability developments for each company.


Portfolio monitoring... How we do it

KPI data collection

In mid-2014 the Apax Fund portfolio companies across Funds V, VI, VII and VIII were asked to provide input on 80 KPIs, based, amongst others, on the Global Reporting Initiative (GRI) guidelines, the leading international benchmark for sustainability reporting.

Portfolio implementation

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

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

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

The Apax ESG Group 2013 Environmental, Social and Governance KPI data has been collected from 25 Apax Fund portfolio companies, only 2 eligible (i.e. majority owned in 2013 and not in exit planning) companies did not participate due to operational reasons. Throughout this report the group of companies that provided KPI data is referred to as the Apax ESG Group. For this report the contributing companies are: Capio, Cole Haan, Epicor, Farmafactoring, Garda, GHG, iGAte, Acelity (formerly KCI), New Look, One Call Care Management, Orange Swizterland, Paradigm, Plantasjen, Psagot, Rhiag, Rue21, Sisal, Sophos, Takko, Tivit, TopRight Group, Trader Media, Trader Canada, Trizetto and Unilabs.

The Apax ESG group generated approximately US$ 23 billion (€16bn) in global revenues in 2013. The group employed 168,000 full time equivalent employees (FTE) globally by year end 2013 and represents a cross section of the key Apax investment sectors: Consumer, Healthcare, Services and Tech & Telecom. The scale of the operations of Apax Fund portfolio companies puts the Firm on a par with many of the world’s largest multi-national companies and drives a proactive focus on sustainability as a fundamental part of our wider corporate responsibility.

00 Apax Partners Sustainability Report

Apax Partners Sustainability Report


Edition 2

Sustainability software system


In this section:

Apax Partners08 Releasing potential sustainably09

Environmental impact 07Social impact 08Governance 09ESG performance data 10

North America

12Companies

$5,794mInvested cost

$10,654mRevenue

Rest of the World

5Companies


$1,959mRevenue

Apax Funds have a globally diversified portfolio across 15 countries with differing regulatory frameworks. Total capital invested globally at year end 2014 was USD 14.9 billion, in 35 companies, generating combined revenues of USD 29 billion*.

Europe

18Companies


$16,176mRevenue

A global portfolio


*Buyouts only as at 31.12.2014

LTM serious environmental incidents 0%

Waste Management Policy 41%

Environmental Policy 42%

Initiatives to reduce water usage 43%

Initiatives to reduce paper/packaging 64%

Initiatives to reduce energy usage 67%Compliance with all local environmental regulations 96%

of the Apax Funds portfolio

Environmental impactExamples of environmental initiatives

Energy890m Kwh of electricity usage reported by 18 companies

iGATE has replaced its monolithic Uninterrupted Power Supply (UPS) systems with compact UPS systems which are designed to operate with maximum energy efficiency and a minimum carbon footprint. As part of its forthcoming facilities, IGATE will be implementing a hybrid power grid, combining both solar and wind power. This is expected to generate approximately 100 kW of electricity with a consumption of one electrical unit per sq. ft. per month, which is half the average industry consumption. Cooling solutions with high efficiency and advanced controls and adoption of optimal lighting concepts such as LED, has allowed for synchronization of energy units for enhanced performance and reduction of power consumption by half

Paper32,565 tons of paper purchased by 18 companies

Top Right Group constantly seeks to improve print run efficiency and seeks to utilise fewer presses and generate less waste on paper stock. By consolidating print runs and using the same cover and text stock throughout, the company is able to print back to back and reduce the amount of ‘make ready copies’ to one on a single press run – across batches of titles. This reduces the amount of paper wastage that occurs from continually printing just one title at a time. By working with printers it is reducing wastage on paper, ink and plates. Additionally, it aims to purchase the lowest paper volume necessary in using only one or two grades across all titles and supplements.

It has ensured that the paper stock for its weekly and monthly titles is sustainably sourced.

15 companies account for 25% of CO2 emissions

5 portfolio companies account for 75% of CO2 emissions

Examples of environmental KPIs

Environmental data overviewThere were no serious environmental incidents reported across the ESG Group. The ESG Group reported almost full compliance with all local environmental regulations in 2013. There is a known issue at one portfolio company in the European health care sector where there is an improvement programme in place to deal with certain aspects of Healthcare Waste Requirements.

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

The Apax Fund portfolio consists of a large number of “asset light” businesses which do not have a significant environmental impact. The majority of the resource usage is reported by a small number of companies. For example, out of 20 companies which provided data to calculate CO2 emissions, 5 account for 75% of all reported CO2 emissions in 2013.

On a combined basis, CO2 emissions for the 2013 ESG Group have gone down by 225,000 tons eq compared to 2012. This due to the fact that the Apax Europe VII portfolio company Tnuva is no longer part of the data collection cycle given its impending sale to Bright Foods of China. The portfolio companies added to the 2013 ESG Group

What is the company’s current energy consumption?

Are there initiatives in place to reduce the energy footprint?

Does the company have an environmental policy?

What are the targets for the next 12 months?

Waste41% of the Apax ESG group portfolio has a waste management policy

Acelity offers offers a recycling program for facilities and patients that allows safe disposal of certain single-patient Negative Pressure Wound Therapy devices. Acelity provides this recycling program free of cost to the customer. Acelity has partnered with Sharps Compliance Inc. to convert customer-recycled Acelity single-patient NPWT devices into PELLA-DRX™. This material is then used in the manufacturing of homes, highways, and high rise buildings.

Water940,000m3 reported by 13 companies

Capio Reduced use of water is part of the initiative to reduce the environmental impact of the Capio clinics. This refers both to the quantity and quality of water sent back in the system. At St Göran’s hospital (Sweden) the company continuously works with suppliers of cloth and clothes (both for employees and patients) as well as bed linen to minimise the use of cotton in order to reduce the amount of water used for cleaning laundry (this also impacts drying) as well as reducing consumption, which in turn impacts the amount of water used for production of cloth used in the hospital.

607,462tons equivalent of CO2

were reported by 20 companies

Breakdown of CO2 emissions

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

have a far lower resources usage profile. On a like for like basis there has been an increase of 67,000 tons eq. across a core group of 16 companies, mainly due to the fact that several portfolio companies were more comprehensive in their energy data capture in 2013 than for 2012.

The Apax Fund portfolio is focused on reducing its global environmental impact – with the majority of companies having improvement initiatives in place. The portfolio’s environmental stewardship initiatives will help protect the planet while improving efficiency, reducing costs and preserving their ability to do business in the future. Sustainability is not just the right thing to do, it can also boost innovation and profitable growth. This is why we clearly see it as a key differentiator and a competitive advantage.


Data representative of year ended 31.12.2013

Social impact

Social impact summaryThe ESG Group workforce stood at 168,000 full time employees at 31.12.2013. Due to the movement in the ESG Group, with new additions to the portfolio and a number of companies not contributing comparable data, it is not possible to draw a straight comparison across the ESG Group between 2012 and 2013. Like for like growth in employees stood at 3% or 4,300 FTE’s from a core group of 19 companies; 6 new companies in the portfolio brought an additional 26,000 FTE’s.

The Apax ESG Group contains a number of very large employers. Three companies each employ over 25,000 FTE’s and six companies combined account for over 70% of the overall ESG Group workforce with the remaining 30% of the workforce employed by 19 other portfolio companies.

Employee Health and Well BeingDays lost due to illness is tracked by a large proportion of the ESG Group. In 2013, 15 out of 25 companies in the ESG Group provided this information. Across the 15 companies on average 3.5 days were lost per employee to illness. Roughly 34,000 individuals chose a voluntary exit and there were approx. 11,000 redundancies across the Apax ESG Group, representing 6.5% of total FTE’s at year end 2013.

Health and Safety In terms of health and safety, 20 of the Apax ESG group portfolio companies reported having a Health & Safety policy in place. There were 5,800 work related accidents reported across the ESG Group and three companies reported that they had paid a fine for health and/or safety non-compliance, one of which relating to an event which had taken place pre-acquisition by the Apax Funds.

Examples of social KPIs

What is the profile of the workforce?

Is there employee representation?

Does the company have a health and safety policy?

Level of voluntary turnover and redundancies?

Health & SafetyGarda Implementation within the business of a structured working approach through quality, health, safety and environmental management systems. GardaWorld have become the first security provider anywhere in the world to achieve global certification to international standards of its operations: ISO 9001 (Quality Management), BS OHSAS 18001 (Health and Safety), ISO 14001 (Environment) and BS ISO 22301 (Societal Security and Business Continuity). And have developed a security operations management system that is currently under audit for PSC.1:2012, a standard for private security operations.

Employee benefitsOrange offers free services “ HomeCare “ and “ ElderCare “ to all its employees in addition to the Service “ ChildCare “. It has a helpline for information services, counselling and placement help in the following areas : care and assistance to elderly and research services for home maintenance.

Monthly fees for mobile phones are completely free of charge. Each employee can take advantage of negotiated discounts with many companies in Switzerland. Other benefits are: recruitment premiums, premiums for acquiring new business or private customers, pension fund contribution without deduction of coordination salary, employer contribution to pension fund over legal minimum.

6 companies account for over 70% of employees

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

New Look believe that it’s never acceptable to harm animals in the manufacturing or testing of their products. The company has developed an animal welfare policy to cover all products retailed by New Look. It’s split into two sections: animal protection and animal testing. Animal protection covers any animal-derived materials used in their products. New Look believes that using some animal materials is unacceptable in any measure. The second part covers the testing of cosmetics on animals. New Look will not conduct, commission, or be party to any animal testing of cosmetic products or ingredients.

New Look’s commitment to providing stylish animal-friendly fashion has been celebrated by PETA - The People for the Ethical Treatment of Animals. In 2013, they won PETA UK’s Most Stylish Women’s Vegan Outerwear Award.

of the Apax Funds portfolio

Breakdown of employees

16 companies account for 30% of employees

1 32 44

5,800 work related accidents3.5 sick days per FTE / year

Examples of social impact initiatives

Animal Welfare

55% female 45% male

Gender balanceThe workforce was split 55% female and 45% male at year end 2013, with 61% or 14 companies reporting to have a diversity policy in place and workers councils active at 11 companies. In 2013, 100% of Apax portfolio companies reported that they complied with local labour regulations.

168,000full time employees

(FTEs) in the Apax ESG Group in 2013

Training & developmentGHG increased its number of internal promotions, and through a move to e-learning has delivered higher number of training episodes in less time and improved compliance

During 2013 Psagot created a Managers Advancement process, Evaluation and Upward appraisal Process, Excellence awards, innovation plan, and an employees talent plan, welfare plans to further the development of their employees

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



Enhanced policies and guidelines in 2013...Capio decided to share information about Capio’s newly adopted policies for anti-bribery and anti-corruption as well as whistle-blower function routines with all employees. The information was summarized in a leaflet “What we aim for – and if it does not work”. In this brochure information about what Capio aims for in terms of business ethics and the policies adopted to strengthen the work to uphold high standards for openness, honesty and accountability in every day work are described. The information was sent out jointly by Capio’s CEO and the Chairman of the Capio European Workers Council (EWC). The information was distributed to all employees across the Capio Group in their native language in 2014 (Swedish, French, German and English).

The Board of Directors of Trizetto adopted an authority matrix that identified certain actions that require Board approval and delegated certain other actions to the Compensation Committee and Audit Committee of the Board of Directors. The Company also revised its Code of Business Conduct and Ethics. Psagot continued to develop its institutional involvement activities and has obtained several achievements, including the implementation of some of its recommendations in the conclusions of the Endorn Committee for debt settlements. In addition, Psagot established Psagot’s center for financial edjucation and is performing a series of activities in order to raise financial awareness in the public. Epicor rolled out a worldwide compliance training initiative and hired a Chief Security Officer/CIO.

Meaningful Improvement in Policy Implementation There has been a very notable improvement in 2013 across the Apax ESG Group with regard to the implementation of specific CSR policies relating to environmental (waste management for example), social (such as diversity policies) and governance areas. The chart below illustrates the proportion of the ESG Group that reported to have specific policies in place in 2013 relative to the proportion in 2012.

What is the anti-corruption practice of the company?

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

Are there supply chain due diligence policies in place?

Does the company have appropriate ethical conduct codes of practice?

What is the composition of the Board of Directors?

(e.g. How many independents?)

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

iGATE was conferred with the Gold Level Award in the Healthy Workplace 2013 assessment. Arogya World – the global health non-profit organization, conducted the first edition of this assessment in India as part of the Clinton Global Initiative Commitment to Action leveraging workplaces as platforms for wellness advancement and chronic disease prevention. IGATE’s Bangalore campus was rated as the most green campus by the Mysore Horticultural Society and the company was recognized with two awards at Asia’s Best Employer Brand Awards 2013. The Company was awarded for “Global HR Strategy,” while Dr. Srinivas Kandula, Global Head – HR, IGATE was given the “HR Leadership Award”.

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

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

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

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

Governanceof the Apax Funds portfolio

Examples of governance KPIs Examples of corporate governance initiativesOverview of compliance and policies

Compliance with all materially relevant local labour regulations 100%Compliance with all local environmental regulations 96%Anti-corruption protections included in 3rd party contracts 90%Monitoring of compliance with compliance policies and procedures 88%Sub-contractors adherence to environmental guidelines 38%Board reports on the main environmental risks & impacts 13%Fines paid for health & safety noncompliance LTM 13%Subject/target of investigation relating to anti-corruption conduct laws LTM 0%LTM serious environmental incidents 0%

Compliance

Annual CSR Report 28%Waste Management Policy 41%Environmental Policy 42%Corporate Governance Policy 60%Diversity Policy 61%Health & Safety Policy 83%Anti-corruption & anti-competitive conduct policies 92%Code of Conduct/Ethics 96%

Policies

Code of conduct / ethics2013 96%2012 90%Change +6%

Waste management policy2013 41%2012 29%Change +12%

Environmental policy2013 42%2012 36%Change +6%

Exec committee member in charge of CSR2013 44%2012 27%Change +17%

Diversity policy2013 61%2012 36%Change +25%

Health and safety policy2013 83%2012 77%Change +6%

Anti corruption / Anti competition policies2013 92%2012 86%Change +6%

Published a CSR Report2013 28%2012 27%Change +1%

Corporate governance policy2013 60%2012 59%Change +1%



(1) Only those portfolio companies which participated in the KPI collection exercise are featured in the performance data overview(2) Sick days and voluntary turnover in some instances are reported in total employees(3) Company B and Company H adopted the anti-corruption policies in 2014

Environmental Social Governance

2013 ESG performance data: by Sector (1)

Company Sub‑sector

CO2 emissions

(tons)Electricity

(Kwh)Water

(m3)Waste (tons)

Serious incidents

Employees FTEs

Woman %

Men %

Diversity policy Sick days (2)

Voluntary turnover

Workers Council (3)

Code of conduct

Anti‑corruption

policy (3)

CSR Report

ConsumerCompany A Gaming 12,263 19,500,000 28,000 42 No 1,726 41% 59% No 11,540 55 Yes Yes Yes Yes

Company B Online 3,393 1,287,760 0 0 No 979 41% 59% – 0 178 No No No No

Company C Publishing 1,598 2,705 – 12 No 1,717 58% 42% Yes – 466 No Yes Yes Yes

Company D Retail 114,572 213,987,060 140,154 4,655 No 7,612 85% 15% Yes – 7,642 Yes Yes Yes Yes

Company E Retail 6,118 0 368,503 6,610 No 1,228 72% 28% No 20,848 118 Yes Yes Yes No

Company F Retail 47,005 80,049,000 – – No 8,636 93% 7% No 50,000 758 No Yes Yes Yes

Company G Retail – – – – No 1,490 59% 41% Yes – 1,167 No Yes Yes No

Company H Retail 291 100,000,000 – – No 13,874 79% 21% Yes 1,961 8,326 No Yes No No

HealthcareCompany I HC Services 21 864,268 1,200 – No 2,443 75% 25% Yes 776 311 – Yes – No

Company J HC Services – – – – No 4,230 78% 22% Yes – 292 No Yes Yes No

Company K HC Services 58,717 73,517,728 62,162 744 No 4,831 50% 47% Yes 415 836 Yes Yes Yes No

Company L Hospitals – – – – No 11,875 83% 17% Yes – – Yes Yes Yes No

Company M Hospitals 49,337 58,693,078 249,085 3,034 No 7,776 77% 23% Yes 65,746 1,166 No Yes Yes Yes

Company N IT Services – – – – No 3,685 42% 58% Yes – 267 No Yes Yes No

ServicesCompany O Business Services 129,066 98,400,000 – – No 27,519 25% 75% Yes 10,065 2,740 No Yes Yes No

Company P Business Services 13,745 13,314,255 52,324 3,821 No 3,005 15% 85% No 14,006 135 Yes Yes Yes No

Company Q Financial Services 140 435,394 7,200 0 No 108 49% 51% No 768 3 Yes Yes Yes No

Company R Financial Services 2,965 2,397,010 6,202 12 No 787 47% 53% – 6,519 133 No Yes Yes Yes

Company S Online 62 – – 4 No 604 41% 60% No 1,696 93 Yes Yes Yes No

Tech & TelecomCompany T IT Outsourcing 11,809 78,453,277 8,635 0 No 29,637 70% 30% No 168,219 11,701 Yes Yes Yes No

Company U IT Services 88,313 62,092,780 – – No 28,376 26% 74% Yes – 4,366 n/a Yes Yes Yes

Company V Software 62,523 30,000,000 3,603 – No 4,612 35% 65% No – 449 No Yes Yes No

Company W Software – – – – No 690 34% 66% Yes – 61 Yes Yes Yes No

Company X Software 2,986 3,824,724 5,472 1 No 455 26% 76% Yes 462 53 No Yes Yes No

Company Y Telecoms 2,538 53,242,295 8,253 56 No 986 33% 65% No 7,594 92 Yes Yes Yes No



(1) Only those portfolio companies which participated in the KPI collection exercise are featured in the performance data overview(2) Sick days and voluntary turnover in some instances are reported in total employees(3) AEVII Company C and Apax VIII Company B adopted anti-corruption policies in 2014

Environmental Social Governance

2013 ESG performance data: by Fund (1)

Company Sub‑sector

CO2 emissions

(tons)Electricity

(Kwh)Water

(m3)Waste (tons)

Serious incidents

Employees FTEs

Woman %

Men %

Diversity policy

Sick days (FTEs) (2)

Voluntary turnover

Workers Council

Code of conduct

Anti‑corruption

policy (3)

CSR Report

Apax Europe VCompany A Consumer 114,572 213,987,060 140,154 4,655 No 7,612 85% 15% Yes n/a 7,642 Yes Yes Yes Yes

Apax Europe VICompany A Consumer 12,263 19,500,000 28,000 42 No 1,726 41% 59% No 11,540 55 Yes Yes Yes Yes

Company B Consumer 47,005 80,049,000 – – No 8,636 93% 7% No 50,000 758 No Yes Yes Yes

Company C Healthcare – – – – No 11,875 83% 17% Yes – – Yes Yes Yes No

Company D Healthcare 49,337 58,693,078 249,085 3,034 No 7,776 77% 23% Yes 65,746 1,166 No Yes Yes Yes

Company E Healthcare – – – – No 4,230 78% 22% Yes – 292 No Yes Yes No

Company F Services 140 435,394 7,200 0 No 108 49% 51% No 768 3 Yes Yes Yes No

Company G Services 62 – – 4 No 604 41% 60% No 1,696 93 Yes Yes Yes No

Company H Tech & Telecom 62,523 30,000,000 3,603 – No 4,612 35% 65% No – 449 No Yes Yes No

Company I Tech & Telecom 2,986 3,824,724 5,472 1 No 455 26% 76% Yes 462 53 No Yes Yes No

Company J Tech & Telecom 11,809 78,453,277 8,635 0 No 29,637 70% 30% No 168,219 11,701 Yes Yes Yes No

Company K Tech & Telecom 88,313 62,092,780 – – No 28,376 26% 74% Yes – 4,366 – Yes Yes Yes

Apax Europe VIICompany A Consumer 6,118 0 368,503 6,610 No 1,228 72% 28% No 20,848 118 Yes Yes Yes No

Company B Consumer 47,005 80,049,000 – – No 8,636 93% 7% No 50,000 758 No Yes Yes Yes

Company C Consumer 3,393 1,287,760 0 0 No 979 41% 59% – 0 178 No No No No

Company D Consumer 1,598 2,705 – 12 No 1,717 58% 42% Yes – 466 No Yes Yes Yes

Company E Healthcare – – – – No 3,685 42% 58% Yes – 267 No Yes Yes No

Company F Healthcare 58,717 73,517,728 62,162 744 No 4,831 50% 47% Yes 415 836 Yes Yes Yes No

Company G Services 2,965 2,397,010 6,202 12 No 787 47% 53% n/a 6,519 133 No Yes Yes Yes

Company H Services 62 – – 4 No 604 41% 60% No 1,696 93 Yes Yes Yes No

Company I Tech & Telecom 62,523 30,000,000 3,603 – No 4,612 35% 65% No – 449 No Yes Yes No

Company J Tech & Telecom 88,313 62,092,780 – – No 28,376 26% 74% Yes – 4,366 – Yes Yes Yes

Company K Tech & Telecom – – – – No 690 34% 66% Yes – 61 Yes Yes Yes No

Company L Tech & Telecom 2,986 3,824,724 5,472 1 No 455 26% 76% Yes 462 53 No Yes Yes No

Company M Tech & Telecom 11,809 78,453,277 8,635 0 No 29,637 70% 30% No 168,219 11,701 Yes Yes Yes No

Company N Tech & Telecom 2,538 53,242,295 8,253 56 No 986 33% 65% No 7,594 92 Yes Yes Yes No

Apax VIIICompany A Consumer – – – – No 1,490 59% 41% Yes – 1,167 No Yes Yes No

Company B Consumer 291 100,000,000 – – No 13,874 79% 21% Yes 1,961 8,326 No Yes No No

Company C Healthcare 21 864,268 1,200 – No 2,443 75% 25% Yes 776 311 – Yes – No

Company D Services 129,066 98,400,000 – – No 27,519 25% 75% Yes 10,065 2,740 No Yes Yes No

Company E Services 13,745 13,314,255 52,324 3,821 No 3,005 15% 85% No 14,006 135 Yes Yes Yes No



Case study

Overview

Apax Funds completed their investment in Takko in February 2011. Takko is one of the leading value fashion retailers in Europe, operating a portfolio of over 1,900 stores in 17 European countries located principally in shopping malls and out-of-town locations. Takko was founded in 1982 and is headquartered in Telgte, Germany.

Supply Chain Initiative

The pre-investment sustainability analysis highlighted amongst others that Takko should focus on continuous improvement of its supply chain management. Responsible supply chain management is critical for a retail business using low-cost country sourcing in order to limit reputational risk to the brand. It was recommended that Takko increase its audit coverage in its main sourcing countries and become a member of a non-profit organisation focusing on supply chain management that could help to improve the working conditions in the production sites. Subsequently, in October 2011, Takko joined the Fair Wear Foundation (FWF), an independent, non-profit organisation that works with companies and factories to improve labour conditions for garment workers.

The Fair Wear Foundation worked with Takko senior management to implement their Code of Labour Practices in the production sites. Since the beginning of this membership, Takko have built up their own audit teams and have involved external partners for auditing the factories according to the Fair Wear Foundation philosophy.

Progress

Through its membership of the FairWear Foundation, Takko has pro-actively increased its focus on responsible sourcing and supply chain conditions. In the financial year 2013/2014, Takko’s second year of FWF membership, a total of 403 audits were conducted in Takko’s supplier countries (including follow-up audits in already visited factories). The main countries where Takko sources from are China, Bangladesh and India. In 2013, 73% of the total order volume was audited, surpassing the threshold of 60% set by the Fair Wear Foundation for its members in their second year of membership. The auditing and verification process of Takko’s audit teams in India, Bangladesh, and China has improved and all production sites have been included in Takko’s internal IT system (goods management system), allowing more meaningful analysis of the production sites.

Takko received the brand category “Good” which is awarded to companies where the FWF believes they are making a serious effort to implement the Code of Labour Practices. They are also doing more than the average clothing company, and have allowed their internal processes to be examined and publicly reported on by an independent NGO.


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

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

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

Striving to make a positive contribution

Apax Foundation

Social entrepreneurship

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

Apax staff ‘matching’ scheme

Our matching scheme is designed to encourage and support our team’s personal involvement with charities close to their hearts. The Apax Foundation has made total cumulative donations of over £1.6 million to charities to which members of the Apax team have given their time and skills.

Impetus – The Private Equity Foundation

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

Social investments

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

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

Simon CresswellPartner, General Counsel Apax Partners

Peter EnglanderCEO of the Apax Foundation

Martin HalusaChairman, Apax Partners

David MarksSenior Taxation Advisor, Apax Partners

John MegrueChairman, Apax Partners

U.S.

Shashank SinghPartner, Apax Partners

Michael PhillipsFormer Partner, Apax Partners

Mitch TruwitCo CEO, Apax Partners


Emmaus UK

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

Grameen America North America

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

Ashoka 3 years Germany

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

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

INSEAD Social Entrepreneurship Programme 2 years France/Singapore

Joblinge 1 year initially followed by 3-year re-commitment Germany

Millennium Promise 3 years Africa

Mosaic 3 years initially followed by rolling 1-year re-commitment UK

Non-Profit Incubator / Xingeng Workshop 3 years China

Opportunity Network 3 years US

Prince’s Trust 1 year UK

Shivia 3 years India

Social Finance 2 years UK

Trickle Up 1 year initially followed by India, 2-year re-commitment West Africa, Central America

Charity Period Country

Joblinge Germany

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

Millennium Promise Africa

Millennium Promise’s goal is to halve extreme poverty in Africa by 2015. Its flagship initiative is the Millennium Villages project which operates in 80 villages across ten countries in sub-Saharan Africa, reaching over 500,000 people. The Apax U.S. Foundation’s donation funds the new post of Director of Business Development, with a remit to help create sustainable enterprises in the villages to secure a stable future for the inhabitants.

Apax Foundation continued

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

Social entrepreneurship examples

Social entrepreneurship


Values across the Apax Funds portfolio

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

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

Shaping our industry’s values

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

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

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

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

Our valuesOur shared investment values

Our values are built on five key pillars

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

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

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

Relationships Create long-term relationships founded on mutual advantage.

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

Overview

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

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


The findings from our ESG performance review will help put in place action plans for improvement for those companies where it is required, or identify companies which can benefit from sharing best practices with other Apax Fund portfolio companies.

By 2015 we aim to have engaged

of the Apax Funds portfolio in the measurement of their environmental, social and governance impact.

Conclusion

100%Find out more at www.apax.com/responsibility

Sustainability reporting across the Apax Partners portfolio

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INDEPENDENT HOSPITAL CARE

Serious about health. Passionate about care.

ANNUAL REPORT 2012-13

20 MILLION PATIENTS1 ALL TREATED EXACTLY THE SAME WAY – UNIQUELY

E T H I C A L T R A D E R E P O R T

2 0 1 3 - 2 0 1 4

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What we aim for– and if it does not work

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

Social RepoRt 2013/2014

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

Continuing the journey


http://www.bmihealthcare.co.uk/graphics/images/about_BMI/BMI-AR-10-11.pdf

http://www.newlookgroup.com/sites/default/files/attachments/ethical-trade-jan-2015.pdf

http://www.sisal.com/documents/94028/143907/Sisal_Rapporto_Sociale_2013.pdf

http://capio.com/globalassets/capio-ab/governance/ewc/what_we_aim_for.pdf

http://www.takko.com/fileadmin/content/documents/PDFs/Sozialbericht_2012_ENG_FINAL.pdf

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