Apax Partners Sustainability Report

Delivering Value Sustainably

Edition 6

Apax Partners Contents

Chief Executives’ statement 02

Sustainable investing and portfolio monitoring 03

A global portfolio 06

A selection of portfolio ESG KPIs 07 Environmental impact 08 Social impact 09 Governance 10 ESG performance overview 11

Case studies 13

Apax Foundation 15

Our values 17

Conclusion 18

Delivering ValueSustainably

Apax Partners Sustainability Report01

Delivering Sustainable Returns

It is of increasing importance to investors in the Apax Funds that their assets are responsibly invested and are delivering sustainable returns. At Apax, we aim to provide that assurance through our fully embedded responsible investment programme. Since 2009, the Firm has been committed to integrating environmental, social and governance (ESG) considerations into its investment processes. We are delighted that this approach has been recognised within the private equity sector as industry-leading.

Dedicated Operational Expertise

Integral to the success of our responsible investment programme is the work carried out by Apax’s Operational Excellence Practice (OEP). The OEP is a team of operational and functional experts who work on specific areas within the Apax Funds’ portfolio to target step-change results. The OEP regularly helps identify ESG risks and value creation opportunities during the due diligence assessment of potential investments. Post-investment, the team engages with portfolio companies to seek out sources of value creation or risk mitigation which could require further focus. This year, once again, there have been numerous examples of the OEP’s programmes delivering a positive impact, particularly on climate change through significant reductions in CO2 emissions.

Driving Diversity & Inclusion

Since our appointment as co-CEOs, we have been committed to a long-term vision of a more gender-balanced firm. In 2018, we broadened these initiatives to include the Apax Fund portfolio companies. We have enhanced diversity and harassment due diligence in the appraisal of opportunities for the Apax Funds, and increased monitoring for diversity, inclusion and harassment metrics across the portfolio. The OEP developed a detailed project plan and is providing portfolio companies and deal teams

Andrew Sillitoe Co-CEO, Apax Partners

Mitch Truwit Co-CEO, Apax Partners

with the toolkits to support them in creating diverse and harassment-free workplaces. We strongly believe that encouraging diversity is not only the right thing to do, but also contributes towards better decisions and outcomes.

Long-standing Reporting

Since 2012, Apax Partners has produced an annual Sustainability Report. This provides an opportunity to highlight the wide-ranging efforts made by the Apax Funds’ portfolio companies to improve their impact on society combined with delivering on their shareholder value creation objectives. We trust you will find the 6th edition of the Report an interesting read and a testament to our ongoing commitment to making a sustainable contribution to the societies in which we operate.

Chief Executives’ statement

...encouraging diversity is not only the right thing to do, but also contributes towards better decisions and outcomes ...

Committed to delivering value sustainably

Mitch Truwit Co-CEO, Apax Partners

Andrew Sillitoe Co-CEO, Apax Partners

02 Apax Partners Sustainability Report02

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 Responsible Investment policy, which is embedded in its investment processes.

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 Funds’ portfolio companies contribute to the Firm’s ESG processes by monitoring and reporting on key environmental, social and governance indicators. These in turn are reported in the Apax Partners Sustainability Report to provide transparency for investors in the Apax Funds.

Post-investment

1 3 5

2 4 6www.unpri.org

Since adoption of the PRI Principles (see below) in 2011, sustainability has been embedded into Apax’s investment process as a tool to help release the full potential of the businesses in which the 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 the Apax Funds’ ownership of the company.

The Firm coordinates its sustainability efforts through a Sustainability Committee consisting of eight 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 Funds’ portfolio and the Firm.

Apax investment professionals undertake pre-investment ESG due diligence for each new investment made by the Apax Funds. The due diligence will cover the ESG areas that Apax believes are key to understanding the ESG profile of the particular company in which the Apax Funds are considering an investment. The Operational Excellence Practice’s extensive knowledge and expertise is routinely tapped into by Apax investment professionals during pre-infor insight into how a target company’s existing operations might be optimised, ESG risks can be addressed and mitigated, and avenues for value creation can be unlocked during the Apax Funds’ ownership.

Prior to the closing of each new investment, the findings of the ESG due diligence process are reviewed by a member of the Apax Sustainability Committee and incorporated into the final Investment Committee documentation. Key ESG issues, representing either a risk to the portfolio company’s business or an opportunity for value creation, are highlighted as part of this process.

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

For Apax, the key goal of the data collection is to get a better understanding of the materiality of certain KPIs to the overall operations of a portfolio company. This helps the investment team to put in place value creation or risk mitigation initiatives in a far more focused manner, in conjunction with the OEP, in order to drive the value relevant to the particular material issues (such as natural resource efficiency programmes).

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Portfolio monitoring... How we do it

Extensive ESG data collection

A distinctive and differentiating feature of the Apax portfolio monitoring process is an annual ESG KPI data collection cycle through which the Firm monitors, tracks and reports on the Environmental, Social and Governance impact of the Apax Funds’ portfolio companies.(1)

In early 2012, Apax developed a comprehensive set of key performance indicators across environmental, social and governance areas based on the Global Reporting Initiative (GRI), LP questionnaires and other reporting standards focused on the reporting of non-financial ESG metrics. The ESG KPI set consists of qualitative and quantitative data and has grown from an initial 80 KPIs in 2012 to over 120 in 2018. It covers a broad range of topics and includes areas such as cyber security and diversity and inclusion.

The annual data collection cycle is designed to highlight each portfolio company’s performance in its key areas of risk and opportunity. A sustainability software platform 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.

For Apax, 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 Buyout Funds portfolio, as well as within each individual portfolio company. The Firm is able to provide this information to LPs on an ongoing basis providing transparency on the portfolio’s underlying ESG footprint. Sustainability

software system

From the first year of investment onwards, portfolio companies in the Apax Funds contribute ESG data annually into the sustainability software platform. Over the investment time horizon, companies increase the breadth and depth of their data collection leading to ample ESG data being available at exit.

Comprehensive portfolio participation

Performance data on ESG KPIs was reported by 31 portfolio companies across the Apax Funds(1), this group of companies is referred to as the ‘Apax ESG Group’(2). There were eight new additions to the ESG Group in 2017: Attenti, ECi, Kepro, MATCHESFASHION.COM, Safetykleen, Syneron Candela, ThoughtWorks and Tosca Services.

No longer in the ESG Group in 2017 are GardaWorld, GHG, Genex and Paradigm, due to full or partial exits.

The Apax ESG Group generated approximately US$19.7 billion (€17.5bn) in global revenues in 2017 and employed c.113,000 full time equivalent employees (FTEs) globally. The scale of the combined operations of Apax Buyout Funds portfolio companies puts the Apax Funds on a par with many of the world’s largest multi-national companies and necessitates a proactive focus on sustainability as a fundamental part of the Firm’s wider corporate responsibility.

120 KPIs

31 Portfolio companies

c.113,000 FTEs

US$20bn Revenues

(1) Portfolio companies reporting ESG KPIs are in the Apax Funds that have invested primarily in “buyouts”, being AEVI, AEVII, AVIII, and AIX (the Apax Buyout Funds) and exclude AMI and ADF. “Buyouts” refer to private equity deals completed by Funds, which, based on their size, risk-reward profile, growth potential, and cash flow generation ability and potential, have been categorised by Apax as “Buyout” investments. Portfolio companies in which the Apax Buyout Funds hold a minority investment do not report their ESG KPIs.

(2) The ESG Group currently consists of the following portfolio companies: Acelity, Aptos, Assured, Attenti, Azelis, Cole Haan, Duck Creek, ECI Software, Engineering, Evry, Exact, Full Beauty, Global Logic, Ideal Protein, Idealista, Kepro, MATCHESFASHION.COM, Nupharm365, One Call Care Management, Psagot, Quality Distribution, Safetykleen, Syneron Candela, Takko, The Boats Group, ThoughtWorks, TIVIT, Tosca Services, Unilabs, Vyaire and Wehkamp.

Apax Partners Sustainability Report04

Portfolio monitoring... How we drive value creation

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

An innovative approach...

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

...driving value creation...

The detailed regular collection of environmental and social KPIs enables the Firm to look at the Apax Funds’ portfolio companies through the lens of environmental and societal impact.

...contributing to global goals

The benefits of the ESG KPI data collection are three-fold:

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

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

– Creating continued awareness for portfolio companies of the importance of measuring and managing the impact of their businesses on both people and the planet.

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

Engaging in projects to reduce the costs and consumption of natural resources. The OEP has worked with a number of preferred partners on projects across the Apax Funds’ portfolio. The team has engaged with companies looking to reduce their carbon footprint, cut energy costs and gain a strategic competitive advantage. Where relevant, the OEP will be involved in supporting those portfolio companies where there is a material impact expected from enhanced natural resource efficiency.

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

More and more Apax Funds’ portfolio companies are working towards aligning with the UN Sustainable Development Goals (SDGs): ranging from programs to save energy, water, and other resources; to commitments to source renewable energy; to the waste management of products to be reused, recycled and disposed of properly at the end of their useful lives.

The SDGs task all enterprises and investors to measure and manage their impact on people and the planet – positive and negative, intended and unintended, and were unanimously committed to by 193 nations in 2015. By developing a set of targets and indicators, companies can effectively communicate their performance based on their social and environmental goals.

The UN Sustainable Development Goals

Read more

Apax Partners Sustainability Report05

Apax Partners Sustainability Report06

In this section:

North America

17Companies

$7.1bnInvested cost

$10.4bnRevenue

Rest of the World

6Companies

$1.6bnInvested cost

$2.5bnRevenue

The Apax Funds have a globally diversified portfolio consisting of companies with headquarters across 14 countries with differing regulatory frameworks. Total capital invested globally at year end 2017 was USD 14.9 billion, in 38 companies, generating combined revenues of USD 23.3 billion(1).

A global portfolio

Europe

15Companies

$6.2bnInvested cost

$10.4bnRevenue

A selection of portfolio ESG KPIs 07Environmental impact 08Social impact 09Governance 10ESG performance overview 11

(1) Includes all minority owned companies except Guotai Junan Securities.

A selection of portfolio ESG KPIs

Apax ESG Report

ESG Group evolution

2013

2014

2015

2016

2017

ExitsNew investments+/+ -/- Electricity kwh

Code of ethics Diversity policyEmployeesPortfolio company participation

92% 890m 168,000 96% 61%Apax Partners Sustainability Report

Releasingpotentialsustainably

Edition 2

100% 875m 202,000 100% 74%Apax Partners Sustainability Report

Edition 3

100% 748m 151,000 93% 66%Apax Partners Sustainability Report

ReleasingpotentialsustainablyEdition 4

100% 599m 150,000 85% 63%

100% 389m 113,000 90% 55%Apax Partners Sustainability Report

Delivering Value Sustainably

Edition 6

Apax Partners Sustainability Report07

Compliance with local environmental regulations 97%

No serious environmental incidents 97%

Initiatives to reduce energy usage 71%

Initiatives to reduce waste 68%

Initiatives to reduce paper/packaging 61%

Waste management policy 48%

Environmental policy 48%

Initiatives to reduce water usage 32%

of the Apax Funds portfolioEnvironmental impact

Examples of environmental initiatives

Energy389m Kwh of electricity usage reported by 21 companies

TIVIT has been conserving energy in a variety of ways such as through lighting and air conditioning automation. Examples include shorter periods of lighting and air conditioning throughout the day, lighting turned off at specific points where not needed, alternating of switches in meeting rooms, substitution of incandescent and fluorescent lamps for LED lighting, air conditioning optimisation and automation and frequency inverters installed in data centre cooling towers.

Neuraxpharm has also been focused on energy conservation by adapting lighting and air conditioning settings. It reports an annual saving of 293,052 kWh on air conditioning and of 58,657 kwh on lighting optimisation programmes. This was achieved mainly by switching off unused equipment during weekends and holiday periods.

Wehkamp installed 7,000 extra solar panels and LED lighting in their new distribution centre in Zwolle, NL in order to provide a renewable power source. In addition, the company installed Cloud Energy Optimizer (CEO) in their HQ, which will lead to an improvement of the climate control installation resulting in a guaranteed saving of 12% gas usage in the Wehkamp HQ.

Paper60,540 tonnes of paper purchased by 20 companies

Psagot is reducing paper consumption by double-sided printing, providing Board materials

by tablets, establishing dedicated printing centres, reusing envelopes for internal purposes and using an online forms signing system.

Safetykleen will be moving over to a new ERP system in the UK business and the use of handheld devices for sales and service activities will reduce significantly the amount of paper the company uses.

At Unilabs there are many local initiatives in place, for instance in Denmark where almost 40% of all flamingo/stryrofoam boxes are being re-used (compared to 2016) and in Portugal where patient reports are no longer being printed out leading to a 20% reduction in paper usage .

Waste2,375 tonnes of waste reported by 16 companies

Cole Haan has continued to improve its recycling efforts in its Greenland facility. Co-mingled recycling, separation of metal from construction waste and a major focus on baling and recycling cardboard has begun to show a reduction in treated waste. The distribution centre recycled the equivalent amount of cardboard (or more) as was purchased in 2017.

For many years now, Engineering’s Technological Infrastructure Services (SIT) office has been operating a dense and highly efficient network dedicated to restoring damaged computers by simply replacing their components, just as might happen within a mechanical workshop. This is an example of how an approach to sustainability can also generate a reduction in business costs.

15 companies reported 18% of electricity usage

6 portfolio companies reported 82% of electricity usage

Resources usage The Apax Funds’ portfolio consists of a growing number of “asset light” businesses, due to Apax’s focus on four specific sectors which do not have a significant environmental impact: Tech & Telco, Services, Healthcare and Consumer. The most material environmental indicator for the companies is electricity usage and here, as with other environmental indicators, the majority of resources usage is reported by a small number of companies. As the chart above highlights, 82% of all electricity usage in the Apax ESG Group is reported by six companies.

Electricity usage in the ESG Group on the whole reduced by over 30% in 2017. This is due to the exit from the ESG Group of two companies with relatively high usage and a significant number of new companies joining the Apax Funds’ portfolio who do not yet have the ability to track their resources usage. On a like-for-like basis the 16 companies reporting data both in 2016 and 2017 reported a decrease in electricity usage of over 7% or 29 million kwh.

Breakdown of electricity usage

Across the Apax Funds’ portfolio, we have a high number of initiatives in place that reduce complexity, waste and natural resource 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.

This insight into where the main part of the usage in the portfolio is located enables the OEP to work with the largest users in the portfolio to identify reduction initiatives that can help further decrease the usage.

With over 70% of portfolio companies reporting that they have energy reduction initiatives in place, the Apax Funds’ portfolio is focused on reducing its global environmental impact where possible. 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. We believe it is not just the right thing to do, it can also boost innovation and profitable growth.

Environmental performance overview

Environmental achievements

See examples of environmental impact initiatives for full details

reduction in packaging materials

Kwh of electricity saved

reduction in paper usage

reduction in gas usage

12%

351,7097tonnes

20%

2

1

3

4

5 6

1 Electricity 39%

2 Paper 16%

3 Airplane travel 16%

4 n/a 16%

5 Fuel for cars 10%

6 Waste 3%

Most material environmental indicator

389m kwhreported by

21 companies

Apax Partners Sustainability Report08

Data representative of year ended 31.12.2017

Human Capital Boats Group has actively set up a number of employee related initiatives in order to improve its human capital management practices. Amongst others it created a professional reimbursement program, launched its first employee engagement survey, improved company communication through a closed loop within all offices worldwide with weekly updates and launched an internal bi-weekly newsletter. It created internal transfer/promotional guidelines and processes and launched job postings for all internal and external positions.

ECi Software received the prestigious great place to work certification in September 2017 from the independent analysts at Great Place to Work®. ECi earned this credential based on extensive ratings provided by its employees in anonymous surveys.

ThoughtWorks has a dedicated focus on developing a diverse workforce and continues to explore unique ways to enhance efforts to increase the number of women and underrepresented minorities in its workplace. In recognition of these efforts ThoughtWorks became the winner of the highly recognised Anita B.org Top Companies for Women Technologists to work for the third consecutive year.

CommunityAcelity has leveraged relationships from across the continuum of care and with local organizations to donate hundreds of thousands of dollars in product, global disaster response efforts and to support military and surgeon training in developing countries. Examples of these philanthropic activities include the dedication of its staff in response to Hurricane Harvey, providing access to its products and donations to support the American Red Cross. Likewise, teams in Las Vegas and the surrounding territories provided access to much-needed wound therapies following the mass shooting on October 1, 2017. The Servants Heart Foundation, a key component of the Acelity CSR program, also continued to donate thousands of dollars to support key programs in communities across the globe.

MATCHESFASHION.COM created ‘Matches Mob’, an employee forum that will be used to channel sustainability actions, including charitable actions. This will be used to drive forward a united and cohesive philanthropic strategy. They have implemented a ‘Give a Day Away’ programme - whereby all employees are entitled to a paid day to volunteer for a charity.

TIVIT implemented a volunteer program in 2017 in Brazil with the adoption of public schools where the volunteers from the company did the maintenance and gave classes to the students. It also has a donation program for warm clothing that is delivered to charities and the ‘Tree of Dreams’ program that encourages employees to choose needy children to give gifts to at Christmas.

FTEs into the ESG Group total. Like-for-like employee growth across 24 companies reporting in 2016 and 2017 was 6.7% or 6,500 FTEs.

Health & Safety and employee well beingA Health & Safety policy is in place at over 80% (26) of all portfolio companies reporting in 2017, which is similar to 2016. There were around 870 work related accidents reported across the ESG Group, significantly down from 2,100 in 2016.

Days lost due to illness is also tracked by most portfolio companies. In 2017, 24 out of 31 companies in the ESG Group provided this information. On average 3.5 days were lost per FTE due to illness compared to 3.1 days on average in 2016.

At Apax we have the conviction that a broadly diverse work environment leads to better performance within Apax, as well as within the portfolio. The best decision-making and highest quality governance require the broadest diversity of perspectives, including gender, ethnicity, and sexual orientation.

In early 2018, Apax expanded its existing diversity and inclusion project to include the portfolio companies in the Apax Funds. The objective of the project is to get to a balance of women in leadership positions across the portfolio, as board members and as C-level executives.

As a first step, Apax expanded its data collection effort and added a set of questions related to diversity and inclusion. The responses enabled Apax to get a better understanding of the status of diversity and inclusion within the portfolio companies and at portfolio company board level.

On the basis of this insight, the OEP developed a detailed project plan to offer support in creating diverse and harassment-free workplaces. This support continues throughout the lifecycle of a deal: from due diligence (referencing, legal DD, management assessments) to ownership (policies, objective setting, governance structure, best practice sharing).

7 companies account for over 63% of employees

The Apax Funds’ portfolio companies have put in place many initiatives to make an impact on their workforce by conducting regular employee surveys, implementing improved training programmes and putting in place career development practices. In addition, the portfolio companies make an impact on the communities in which they operate through their community engagement. A few examples of each are set out below.

Breakdown of employees

24 companies account for 37% of employees

1 32 44

870 reported work related accidents3.5 sick days per FTE / year

Examples of social impact initiatives

113,000full time employees

(FTEs) in the ESG Group in 2017

Social impact summaryAs highlighted in the chart above, the Apax ESG Group contains a small number of large employers, seven companies combined account for over 63% of the overall ESG Group workforce (on average employing around 10,000 FTEs). The remaining 37% of the workforce is employed by 24 smaller employers in the portfolio, on average in this group of 24 companies 1,700 FTEs per company are reported.

The ESG Group workforce decreased considerably year-on-year and stood at 113,800 FTEs at year end 2017. The decrease is due to the exit of two large employers from the Apax ESG Group, combined accounting for around 50,000 FTEs. The eight new companies in the Apax ESG Group reported on average 1,300 FTEs and brought just over 10,000 additional

of the Apax Funds portfolioSocial impactDiversity and inclusion

Gender, diversity and inclusion overview

Gender diversityPortfolio companies with female board representation

Percentage of female employees in the portfolio

Female employees in management positions (more than 2 reports)

Female direct reports to the CEO

Percentage of women on all boards of Apax portfolio companies

55%

46%

35%

32%

11%

Policies and practices (% of portfolio companies)Workplace harassment policy

Clear process for workplace complaints

Initiatives in place for harassment-free workplace

Diversity policy

Equal pay policy

97%

90%

77%

55%

19%

Apax Partners Sustainability Report09

Data representative of year ended 31.12.2017

Corporate governance improvementsTakko Fashion takes the subject of working conditions and social responsibility very seriously at home and abroad. For that reason Takko Fashion joined the Fair Wear Foundation, the Accord on Fire and Building Safety in Bangladesh and is a signatory of the partnership for sustainable textiles.

Takko continued the improvement of working conditions related to fire and building safety in 2017. It increased its number of social audits in the supply chain: a total of 486 audits were conducted during the 2017/2018 business year, an increase of 30% in comparison with the previous year.

In 2017, Takko reworded its Code of Conduct more comprehensively, to prevent any misunderstandings amongst its suppliers. The Code of Conduct forms the centrepiece of its Procurement Compliance work and is based on the International Labour Organisation standards (ILO standards). It regulates the fair treatment of workers in its production facilities and sets out standards for good working conditions.

Cole Haan continues to actively participate in Social Accountability International’s (SAI) corporate membership and has worked with SAI to transition its supply chain program to one that works with its supply chain partners to continuously improve working conditions and reduce risk. Its re-positioned Code of Conduct has been made

publicly available and Cole Haan has developed its own audit standards and scoring. Following on from this licensee factories will be subject to a new management systems based program in 2018.

MATCHESFASHION.COM is committed to creating a better way of working, building on the passion of employees who are eager to drive positive social and environmental impact within the business and across its relationships. The business has partnered with consultancy Eco-Age to develop a comprehensive sustainability programme with the aim of placing sustainable and ethical practices at the heart of what it does. The first step was the launch of the Code of Conduct on its site and a comprehensive survey has been sent to all its brands. Eco-Age will offer ongoing support to brand partners and suppliers with the objective of collating all information and improving sustainability performance together.

Wehkamp appointed a Head of Compliance in 2017 who takes on the overall responsibility for compliance at Wehkamp group level. Following this appointment, a corporate code of conduct and a compliance program are being developed. Regular compliance update meetings take place between the Head of Compliance and the Board.

Following the investment by the Apax Funds, Candela has been revising its template agreements, implementing a revised Code of Ethics and revising its anti-corruption policy.

At 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 expect 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 partners and employees and also by the Apax Funds’ institutional investors.

Robust corporate governance systems are in place across the Apax ESG group. Virtually all companies have a code of conduct and/or a code of ethics which guides their business activities. Portfolio companies that are new or which have historically had less focus on governance are actively encouraged to adopt appropriate codes and processes within the first year of investment.

Cyber security

Cyber security has become an increasing area of focus for many companies and has been given even more priority with the implementation of the EU GDPR regulation in May 2018.

Apax added a number of cyber security and data protection related KPIs to its data collection and as a result was able to engage where necessary with the portfolio. Almost all companies in the Apax ESG Group handle personally identifiable information and over half of all companies have cyber security insurance.

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

Examples of corporate governance and supply chain improvements

Overview of compliance and policies

Appropriate risk management sytems and controls in place 100%

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

No fines paid for health & safety non-compliance LTM 97%

Compliance with all local environmental regulations 97%

No serious environmental incidents LTM 97%

Compliance with all materially relevant local labour regulations 97%

Monitoring of compliance with compliance policies and procedures 87%

No serious employee related incidents 87%

Anti-corruption protections included in 3rd party contracts 77%

Monitoring of Sub-contractor adherence to anti-corruption policies 29%

Compliance

Improving governance and policy implementation

Throughout 2017, eight companies were added to the Apax Funds’ portfolio. A number of these companies did not yet have mature governance systems in place. The Apax OEP and Compliance teams are working with these companies in order to ensure that going forward they will apply best practice with regard to their codes of conduct and anti-corruption policies.

Code of conduct/ethics201720162015

90%85%93%

Diversity policy201720162015

55%63%66%

All employees trained in cyber security201720162015

61%52%67%

Wastemanagementpolicy201720162015

48%41%41%

Cyber securityinsurance201720162015

55%48%63%

Dedicatedcyberfunction201720162015

71%52%n/a

Environmentalpolicy201720162015

48%41%34%

Anti corruption/Anti competition policies201720162015

87%85%93%

Health and Safetypolicy201720162015

81%82%83%

of the Apax Funds portfolioGovernance

Governance is a key area of focus for the portfolio and companies are encouraged to focus on continuous improvement of their governance practices from the start of the investment, with a particular emphasis on anti-corruption practices and establishing robust codes of conduct. Likewise, supply chain improvements are a key focus area for portfolio companies with exposure to supply chain risk. A number of examples of improvements are outlined below.

Governance summary

INTRODUCTION

This statement has been published in accordance with the UK Modern Slavery Act, which requires businesses to disclose the steps they are taking to tackle slavery, servitude, forced and bonded labour, child labour and human trafficking (together known as ‘modern slavery’). It sets out the steps that Matchesfashion Limited (t/a MATCHESFASHION.COM) takes to prevent modern slavery within our own business and our supply chains. This statement relates to actions and activities during the financial year 1 February 2017 to 31 January 2018.

OUR COMMITMENT

MATCHESFASHION.COM is committed to preventing modern slavery in its corporate activities and across its supply chains. We have zero tolerance approach to slavery and human trafficking.

OUR BUSINESS AND SUPPLY CHAIN

MATCHESFASHION.COM is a global luxury retailer of men’s and women’s fashion, as well as homeware products. We stock over 400 established brands and deliver to more than 170 countries across the world. We are primarily an online retailer, but also operate seven stores in London and host a number of international events throughout the year. Our operations are supported by a team of over 650 employees, a majority of whom are based in our head office in London. In addition, we manage one distribution centre and a photography studio (both London-based) and a local office in Hong Kong. MATCHESFASHION.COM’s operations also include our in-house brand, Raey. Our supply chain includes an international portfolio of brands that vary in size; from the world’s largest and most influential fashion houses to small artisan and boutique designers. To support our general business operations in the UK we have a number of suppliers relating to functions including (but not limited to) logistics, technology, office management and professional services. MATCHESFASHION.COM is majority owned by Funds advised by Apax Partners.

OUR GOVERNANCE

Operations Board: The key purpose of the Operations Board is to focus on building our long-term vision and strategic plan and is ultimately accountable for ensuring we are a responsible business.

Sustainability Committee: We established our Sustainability Committee in 2017, with senior representatives from across MATCHESFASHION.COM and our sustainability advisors, Eco-Age. The Committee meets on a regular basis to discuss the strategic direction of our sustainability activities and progress against projects and targets. Here, our Chief HR Officer and Eco-Age provide updates on our modern slavery strategy.

Modern Slavery and Human Trafficking Statement

Taking responsibility for our corporate activity is an important pillar of our company’s policy. It is our view that in a global economy social responsibility of international companies is not only restricted to sales markets but must also apply in all regions where they operate, wherever possible.

TAKKO FASHION takes the subject of working conditions and social responsibility very seriously at home and abroad.

Therefore TAKKO FASHION joined the Fair Wear Foundation, the Accord on Fire and Building Safety inBangladesh and is signatory of the partnership for sustainable textiles.

Takko Fashion is committed to:• a standard of excellence in every aspect of our business and in every part of the world,• ethical and responsible management in all our operations,• respect for the rights of all individuals,• respect for the environment and• compliance with building and fi re safety.

Consistent with our brand values we expect the same commitments to be shared by all suppliers and producers of Takko Fashion products (“business partners”) and that they conduct themselves with the utmost fairness, honesty and responsibility in all aspects of their business.

FAIR LABOUR CONDITIONSEMPLOYMENT IS FREELY CHOSENBusiness partners shall not engage in any form of servitude, forced, bonded, indentured, traffi cked or non-voluntary labour.

Business partners will risk allegations of complicity if they benefi t from the use of such forms of labour by their business partners.

Business partners shall act with special diligence when engaging and recruiting migrant workers both directly and indirectly.

Business partners shall allow their workers the right to leave work and freely terminate their employment provided that workers give reasonable notice to the employer.

Business partners shall ensure that workers are not subject to inhumane or degrading treatment, corporal punishment, mental or physical coercion and/or verbal abuse.

All disciplinary procedures must be established in writing and are to be explained verbally to workers in clear and understandable terms.

takko.com

TAKKO FASHIONCODE OF CONDUCT

011.1

Apax Partners Sustainability Report10

Data representative of year ended 31.12.2017

(1) Only those portfolio companies which participated in the KPI collection exercise are featured in the performance data overview (see page 4)(2) Employees are reported in FTEs but sick days and voluntary turnover in some instances are reported in total employees

Environmental Social(2) Governance

2017 ESG performance data:(1) by Sector

Company

CO2

emissions (tons)

Electricity (Kwh)

Business travel by air

(Miles)

Water used (m3)

Waste treated

(tons)

Environ- mental

incidentsEmployees

FTEsWomen

FTEsMen FTEs

Diversity policy

Anti- harrassment

policy Sick daysVoluntary

turnoverWorkers Council

Code of conduct

Anti-corruption

policy

Cyber security function

ConsumerCompany A 1,112 7,210,200 500,000 13,076 295 No 359 168 191 No Yes 21 79 No No No No

Company B - - - - - No 457 256 249 No Yes 3,308 63 Yes Yes No Yes

Company C - - - - - No 205 84 121 No Yes - 10 No Yes No No

Company D 55,156 105,800,000 1,266,113 93,800 606 No 8,426 8,090 336 No Yes 56,322 1,480 Yes Yes Yes No

Company E 5,447 8,860,431 - 1,620 40 No 2,108 1,233 875 Yes Yes 50 1,341 Yes Yes Yes Yes

Company F 1,683 16,399,157 3,420,875 33,896 992 No 1,704 1,155 549 Yes Yes 6,480 601 Yes Yes Yes Yes

Company G 793 7,206,128 - 8,280 2,369 Yes 829 385 444 No Yes 18,918 52 Yes Yes No Yes

Company H 338 2,391,562 2,036,028 3,566 35 No 562 383 179 No Yes 679 179 No Yes Yes Yes

HealthcareCompany A - - - - - No 7,922 6,224 1,698 Yes Yes 48,567 557 Yes Yes Yes Yes

Company B 231 390,000 - 450 - No 2,792 2,030 762 Yes Yes 82 414 No Yes Yes Yes

Company C - - - - - No 1,004 825 179 Yes Yes - 184 No Yes Yes Yes

Company D 33,028 24,137,968 46,355,434 61,786 1,679 No 4,968 2,440 2,068 Yes Yes 286 631 Yes Yes Yes Yes

Company E - 5,945,950 - 5,958,321 163 No 4,347 2,946 1,401 Yes Yes 45 1,513 No Yes Yes Yes

Company F 521 1,264,006 - 1,659,387 191 No 819 332 487 Yes Yes 489 145 Yes Yes Yes No

Company G 1,234 7,326,313 662,283 37,075 935 No 649 351 298 No Yes 2,577 40 Yes Yes Yes Yes

ServicesCompany A 441,097 - - - - No 2,417 496 1,921 Yes Yes 2,072 234 Yes Yes Yes No

Company B 751,124 4,678,321 6,702,904 244,423 1,126 No 1,671 864 807 Yes Yes 10,596 Yes Yes Yes No

Company C - - - - - No 1,468 303 1,165 Yes Yes 18,017 161 Yes Yes Yes No

Company D - - - - - No 600 128 472 No Yes - - Yes Yes Yes Yes

Company E 601 230,000 3,295,000 15,000 5 No 132 28 104 No No 756 20 No Yes Yes No

Company F - - - - - No 4,721 3,189 1,532 Yes Yes - 565 No Yes Yes No

Company G 239 999,865 1,978,864 - - No 1,057 349 708 No Yes 1,633 156 No Yes Yes Yes

Company H 2,183 1,200,000 110,000 5,100 11 No 836 380 456 Yes Yes 8,547 218 Yes Yes Yes Yes

Tech & TelcoCompany A 4,544 19,114,164 26,287,013 501,413 - No 11,179 2,884 8,295 Yes Yes 40,639 2,044 No Yes Yes Yes

Company B 6,059 26,488,864 - 1,160,000 12 No 10,273 3,140 7,133 No Yes 1,702 625 Yes Yes Yes Yes

Company C 9,526 65,525,495 8,623,638 107,763 18 No 9,679 3,363 6,316 Yes Yes 5,587 1,034 Yes Yes Yes Yes

Company D 3,000 81,417,952 19,580,848 3,420 - No 8,527 2,481 6,046 Yes Yes 60,595 977 Yes Yes Yes Yes

Company E - - - - - No 4,871 1,901 2,970 No Yes - - No No Yes Yes

Company F 5,386 2,320,907 8,276,804 - - No 1,382 469 913 No Yes 9,386 194 Yes Yes Yes Yes

Company G 423 274 3,510,617 - - No 1,347 398 918 No Yes - 174 Yes Yes Yes Yes

Company H 200 - 1,609,344 - - No 852 397 555 Yes Yes - 92 No No Yes Yes

Apax Partners Sustainability Report11

Data representative of year ended 31.12.2017

(1) Only those portfolio companies which participated in the KPI collection exercise are featured in the performance data overview (see page 4)(2) Employees are reported in FTEs but sick days and voluntary turnover in some instances are reported in total employees

2017 ESG performance data:(1) by Fund

Company Sector

CO2 emissions

(tons)Electricity

(Kwh)

Business Travel by Air

(Miles)

Water used (m3)

Waste treated

(tons)

Environ-mental

incidentsEmployees

FTEsWomen

FTEsMen FTEs

Diversity policy

Anti- harrassment

policySick days

(FTEs)Voluntary

turnoverWorkers Council

Code of conduct

Anti-corruption

policy

Cyber security function

Apax Europe VIICompany A Consumer 55,156 105,800,000 1,266,113 93,800 606 No 8,426 8,090 336 No Yes 56,322 1,480 Yes Yes Yes No

Company B Healthcare 33,028 24,137,968 46,355,434 61,786 1,679 No 4,968 2,440 2,068 Yes Yes 286 631 Yes Yes Yes Yes

Company C Services 2,183 1,200,000 110,000 5,100 11 No 836 380 456 Yes Yes 8,547 218 Yes Yes Yes Yes

Company D Tech & Telco 9,526 65,525,495 8,623,638 107,763 18 No 9,679 3,363 6,316 Yes Yes 5,587 1,034 Yes Yes Yes Yes

Company E Tech & Telco 423 274 3,510,617 - - No 1,347 398 918 No Yes 0 174 Yes Yes Yes Yes

Apax VIIICompany A Consumer 5,447 8,860,431 - 1,620 40 No 2,108 1,233 875 Yes Yes 50 1,341 Yes Yes Yes Yes

Company B Consumer 1,683 16,399,157 3,420,875 33,896 992 No 1,704 1,155 549 Yes Yes 6,480 601 Yes Yes Yes Yes

Company C Consumer 793 7,206,128 - 8,280 2,369 Yes 829 385 444 No Yes 18,918 52 Yes Yes No Yes

Company D Consumer - - - - - No 457 256 249 No Yes 3,308 63 Yes Yes No Yes

Company E Consumer 1,112 7,210,200 500,000 13,076 295 No 359 168 191 No Yes 21 79 No No No No

Company F Healthcare - 5,945,950 - 5,958,321 163 No 4,347 2,946 1,401 Yes Yes 45 1,513 No Yes Yes Yes

Company G Healthcare 231 390,000 - 450 - No 2,792 2,030 762 Yes Yes 82 414 No Yes Yes Yes

Company H Healthcare 1,234 7,326,313 662,283 37,075 935 No 649 351 298 No Yes 2,577 40 Yes Yes Yes Yes

Company I Services - - - - - No 4,721 3,189 1,532 Yes Yes - 565 No Yes Yes No

Company J Services 441,097 - - - - No 2,417 496 1,921 Yes Yes 2,072 234 Yes Yes Yes No

Company K Services 751,124 4,678,321 6,702,904 244,423 1,126 No 1,671 864 807 Yes Yes 10,596 156 Yes Yes Yes No

Company L Services 239 999,865 1,978,864 - - No 1,057 349 708 No Yes 1,633 156 No Yes Yes Yes

Company M Tech & Telco 4,544 19,114,164 26,287,013 501,413 - No 11,179 2,884 8,295 Yes Yes 40,639 2,044 No Yes Yes Yes

Company N Tech & Telco 6,059 26,488,864 - 1,160,000 12 No 10,273 3,140 7,133 No Yes 1,702 625 Yes Yes Yes Yes

Company O Tech & Telco 3,000 81,417,952 19,580,848 3,420 - No 8,527 2,481 6,046 Yes Yes 60,595 977 Yes Yes Yes Yes

Company P Tech & Telco 5,386 2,320,907 8,276,804 - - No 1,382 469 913 No Yes 9,386 194 Yes Yes Yes Yes

Apax IXCompany A Consumer 338 2,391,562 2,036,028 3,566 35 No 562 383 179 No Yes 679 179 No Yes Yes Yes

Company B Consumer - 0 - - - No 205 84 121 No Yes 0 10 No Yes No No

Company C Healthcare - - - - - No 7,922 6,224 1,698 Yes Yes 48,567 557 Yes Yes Yes Yes

Company D Healthcare - 0 - - - No 1,004 825 179 Yes Yes 0 184 No Yes Yes Yes

Company E Healthcare 521 1,264,006 - 1,659,387 191 No 819 332 487 Yes Yes 489 145 Yes Yes Yes No

Company F Services - - - - - No 1,468 303 1,165 Yes Yes 18,017 161 Yes Yes Yes No

Company G Services - - - - - No 600 128 472 No Yes - - Yes Yes Yes Yes

Company H Services 601 230,000 3,295,000 15,000 5 No 132 28 104 No No 756 20 No Yes Yes No

Company I Tech & Telco - - - - - No 4,871 1,901 2,970 No Yes - - No No Yes Yes

Company J Tech & Telco 200 - 1,609,344 - - No 852 397 555 Yes Yes 0 92 No No Yes Yes

Environmental Social(2) Governance

Apax Partners Sustainability Report12

Data representative of year ended 31.12.2017

Case study: Reducing CO2 through facilities and freight optimisation

Overview

On 17 July 2017, Apax IX completed the acquisition of 100% of the outstanding shares in Candela (previously known as Syneron Candela). Candela is a global medical device company that is a leader in non-surgical aesthetics. The company designs, manufactures and distributes energy-based devices (EBD) to core (dermatologists and plastic surgeons) and non-core customers for them to perform non-surgical aesthetical procedures such as hair removal (c.45% of revenue), tattoo and pigmented lesions removal (c.20%), wrinkles, scars and vascular lesions removal (c.20%) and body shaping (c.10%).

Current status

The group employs c.920 people globally and has a balanced geographical footprint between North America, Europe & Middle-East and Asia Pacific. The Company is headquartered in Wayland, MA, U.S.A.. The Company’s business model is primarily based on the sale of capital equipment but it also generates recurring revenues through the sale of consumables and services.

Candela currently has 21 warehouses across the globe with multiple shipments taking place in the production process between the warehouses, totalling over 110,000 shipments or combined more than 100 million miles.

A focus on value creation projects

Following the investment by the Apax Funds, the Apax Operational Excellence Practice worked closely together with the company and the deal team to focus on value creation projects involving the company’s asset intensive network of warehouses and an optimisation of its shipment methods.

Network optimisation

In particular the project focused on integrating the Candela logistics network, more specifically: rationalizing the global distribution footprint and outsourcing to third party logistics providers, consolidating inbound and outbound shipments from manufacturing locations to warehouses and customers, optimizing transport modes and service levels based upon manufacturing and/or customer requirements.

Future Outcomes

After the OEP project has been fully implemented and the network optimisation has concluded, the company will have gone from a network of 21 warehouses to 7 warehouses. More importantly the total number of shipments will have reduced by 34% and with that it is estimated that total miles travelled in freight will have dropped by 43 million miles. The reduction in overall shipment miles will lead to a substantial reduction in CO2 emissions at Candela during the investment period by the Apax Funds.

Apax Partners Sustainability Report13

Overview

Tosca Services is a leading provider of supply chain solutions to the perishable markets of protein, eggs, produce and cheese. The company is primarily engaged in pooling and leasing reusable plastic containers (RPCs) focused on changing the way perishables flow through the supply chain from farm or field to shopping cart – increasing quality, efficiency and sustainability while eliminating waste.

Founded in 1959, Tosca has a rich history of innovation that has driven its growth from a regional cheese barrel refurbishment business into a leading North American provider of reusable containers and supply chain solutions. Headquartered in Atlanta, Georgia, the company today employs over 650 people and operates 14 service centres across the United States working with the nation’s largest and most influential grocery retailers and suppliers.

Environmental Impact of RPCs

Through its products, Tosca enables its customers to take waste out of their supply chain – not only packaging waste but also food and labour waste. The numerous benefits of their reusable packaging are demonstrated by Tosca’s reusable egg crate: reducing product shrink by 50% due to the RPC’s strong construction and protective features; saving 53% labour managing the egg department with RPCs vs one-way corrugated boxes; protecting product quality with enhanced ventilation that cools eggs to 45° in 1 day (vs eggs in corrugated boxes which take 5-6 days to cool to 45°); and removing 1.5 lbs of corrugated packaging from entering the supply chain for every RPC used.

As of December, 2018, Tosca has diverted more than 779,384 tons of corrugated packaging from entering the supply chain since they began issuing RPCs in 2000.

Optimising the Network

Tosca Services has an extensive logistics operation in place to manage the transportation of the containers to and from its customers. Their nationwide network of 14 service centres allows them to efficiently move product while maintaining the highest standards of cleanliness and food safety due to their ISO 22000 certification. More than 100+ million containers are issued every year and this number is increasing. Because the business is growing, the number of containers and the miles travelled are also increasing. It is therefore critical for the business to optimise its network and to carefully manage miles travelled per truckload.

Since the investment by the Apax Funds the Operational Excellence Practice (OEP) has worked with the company to put in place a transportation management facility. This has enabled Tosca to focus on ongoing route optimisation and reduce miles travelled. The company has been able to reduce miles travelled by around 10% since engaging with the OEP, and going forward the company expects this number to decrease further. This reduction in miles travelled has reduced fuel consumption and has a positive environmental impact on the carbon footprint of Tosca’s operations.

Case study: Eliminating waste in the supply chain and improving carbon footprint

Apax Partners Sustainability Report14

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

Social mobility is the focus for the Apax Foundation’s major grant giving, alongside our historic commitment to social entrepreneurship. We benefit from a steady flow of introductions to leading charities in the field, both from within the firm and from our wider network.

The Foundation has continued its commitment to our staff ‘matching’ scheme, which matches charitable donations made by members of the Apax team and also supports the efforts of members of the team who devote significant time to charitable endeavours.

The Foundation has also continued its commitment to the European private equity community’s collective charity, Impetus – The Private Equity Foundation. We have increased our engagement with the Impetus-PEF by running a Summer work experience programme in our London office for the last two years with Impetus-PEF charity partner, IntoUniversity.

Social mobility

Social mobility 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 lift themselves out of poverty. The Apax Foundation has made total cumulative donations of £5.6 million to charities working in this field.(1)

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 around £3 million to charities to which members of the Apax team have given their time and skills.(1)

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. Among these are Finance in Motion, whose mandates include the European Fund for Southeast Europe (EFSE) and the Green for Growth Fund Southeast Europe, and two Bridges Fund Management funds: the Bridges Evergreen Fund, and the Bridges US Sustainable Growth Fund.

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

Simon CresswellPartner, General Counsel Apax Partners

Peter EnglanderCo-CEO of the Apax Foundation

Rohan HaldeaPartner, Apax Partners and Co-CEO of the Apax Foundation

David MarksSenior Taxation Advisor, Apax Partners

John MegrueEx-Chairman, Apax Partners U.S.

Shashank SinghPartner, Apax Partners

Mitch TruwitCo-CEO, Apax Partners

Jason WrightPartner, Apax Partners

Striving to make a positive contributionThe Apax Foundation

(1) Donations made to 31 December 2017

Apax Partners Sustainability Report15

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.

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.

Mosaic UK

Mosaic (part of The Prince’s Trust) is an initiative to help young people fulfil their potential. The Apax Foundation was the founding supporter of the Mosaic Enterprise Challenge, an online business game that runs in schools in disadvantaged areas throughout the UK and culminates in a grand finals event at which the winning teams pitch their business idea to a panel of judges drawn from the business world.

Mann Deshi India

Mann Deshi is dedicated to the economic empowerment of women in rural India and works to empower them with the knowledge, skills and access to capital to become successful entrepreneurs with more control over their lives.

The Apax Foundation continued

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

Social mobility examples

Social mobility/social entrepreneurship

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

Joblinge 1 year initially followed Germany by two 3-year re-commitments

Mann Deshi 1 year initially India

Mosaic/ 3 years initially followed UK The Prince’s Trust by rolling re-commitments

Breaking Barriers 1 year initially UK

Non-Profit Incubator/ 3 years China Xingeng Workshop

Opportunity Network 3 years US

TERN (The Entrepreneurial 1 year initially UK

Refugee Network

Apax Partners Sustainability Report16

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 continue to be actively involved through committee representation on PERG (formerly known as the Walker Guidelines Monitoring Group).

Apax has a distinct culture with four values that guide decision-making and support its goal of delivering strong returns to investors.

These values help the Firm make the right choices by seeking to:

- act without compromising on principles, recognising that enduring relationships are based on trust, honesty and transparency;

- make the most of its global platform by acting as one global team to harness the best talent for situations, wherever they arise;

- empower its people to be entrepreneurial and creative; and

- create an environment in which continuous improvement and introspection are highly valued and in which team members feel an “obligation to dissent” when necessary.

The Apax values inform investors, management teams, employees and other stakeholders what the Firm stands for, and explains some of its longevity as an institution.

Driving the right behaviours to deliver superior returnsThe Apax Values

We choose right over easy

We succeed as one global team

We have impact through insight and tenacity

We learn, adapt and grow

A duty to all stakeholders to treat them with respect and to “do the right thing”

Working collaboratively across teams and geographies to achieve optimal results

An entrepreneurial spirit to seek out differentiated opportunities and perspectives

Seeking out and learning from diverse perspectives to improve continuously

Our values

Apax Partners Sustainability Report17

We are proud signatories of the UN’s Principles for Responsible Investment (PRI) since 2011.

Apax Partners has been a dedicated member of the Principles for Responsible Investment Private Equity Advisory Committee (PRI PEAC) for three years from 2016. During this time frame the PEAC collaborated amongst others on the production of the PRI LP DDQ and the PRI Portfolio Monitoring Guide. Both documents have become the industry standard for assessing and monitoring ESG processes within the private equity industry.

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

Rated

The Apax sustainability programme is evolving continuously. From the outset our intention has been to provide transparency on the impact the Apax Funds’ portfolio companies have on people and the planet and to increase their contribution to society in general.

Due to the processes we have put in place, and the degree to which sustainability is integrated into our investment practices, we are now able to drive progress against metrics which contribute to global sustainability goals.

We are excited about continuing our journey and, together with the Apax Funds portfolio companies, creating a positive impact for the future of our planet.

Across the Apax portfolioSustainability reporting

Apax collaborative activities

Founding partner

Supply chain codes of conductInside Apax

External portfolio accreditation

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INTRODUCTION

This statement has been published in accordance with the UK Modern Slavery Act, which requires businesses to disclose the steps they are taking to tackle slavery, servitude, forced and bonded labour, child labour and human trafficking (together known as ‘modern slavery’). It sets out the steps that Matchesfashion Limited (t/a MATCHESFASHION.COM) takes to prevent modern slavery within our own business and our supply chains. This statement relates to actions and activities during the financial year 1 February 2017 to 31 January 2018.

OUR COMMITMENT

MATCHESFASHION.COM is committed to preventing modern slavery in its corporate activities and across its supply chains. We have zero tolerance approach to slavery and human trafficking.

OUR BUSINESS AND SUPPLY CHAIN

MATCHESFASHION.COM is a global luxury retailer of men’s and women’s fashion, as well as homeware products. We stock over 400 established brands and deliver to more than 170 countries across the world. We are primarily an online retailer, but also operate seven stores in London and host a number of international events throughout the year. Our operations are supported by a team of over 650 employees, a majority of whom are based in our head office in London. In addition, we manage one distribution centre and a photography studio (both London-based) and a local office in Hong Kong. MATCHESFASHION.COM’s operations also include our in-house brand, Raey. Our supply chain includes an international portfolio of brands that vary in size; from the world’s largest and most influential fashion houses to small artisan and boutique designers. To support our general business operations in the UK we have a number of suppliers relating to functions including (but not limited to) logistics, technology, office management and professional services. MATCHESFASHION.COM is majority owned by Funds advised by Apax Partners.

OUR GOVERNANCE

Operations Board: The key purpose of the Operations Board is to focus on building our long-term vision and strategic plan and is ultimately accountable for ensuring we are a responsible business.

Sustainability Committee: We established our Sustainability Committee in 2017, with senior representatives from across MATCHESFASHION.COM and our sustainability advisors, Eco-Age. The Committee meets on a regular basis to discuss the strategic direction of our sustainability activities and progress against projects and targets. Here, our Chief HR Officer and Eco-Age provide updates on our modern slavery strategy.

Modern Slavery and Human Trafficking Statement

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

WINNER

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

Continuing the journeyConclusion

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Taking responsibility for our corporate activity is an important pillar of our company’s policy. It is our view that in a global economy social responsibility of international companies is not only restricted to sales markets but must also apply in all regions where they operate, wherever possible.

TAKKO FASHION takes the subject of working conditions and social responsibility very seriously at home and abroad.

Therefore TAKKO FASHION joined the Fair Wear Foundation, the Accord on Fire and Building Safety inBangladesh and is signatory of the partnership for sustainable textiles.

Takko Fashion is committed to:• a standard of excellence in every aspect of our business and in every part of the world,• ethical and responsible management in all our operations,• respect for the rights of all individuals,• respect for the environment and• compliance with building and fi re safety.

Consistent with our brand values we expect the same commitments to be shared by all suppliers and producers of Takko Fashion products (“business partners”) and that they conduct themselves with the utmost fairness, honesty and responsibility in all aspects of their business.

FAIR LABOUR CONDITIONSEMPLOYMENT IS FREELY CHOSENBusiness partners shall not engage in any form of servitude, forced, bonded, indentured, traffi cked or non-voluntary labour.

Business partners will risk allegations of complicity if they benefi t from the use of such forms of labour by their business partners.

Business partners shall act with special diligence when engaging and recruiting migrant workers both directly and indirectly.

Business partners shall allow their workers the right to leave work and freely terminate their employment provided that workers give reasonable notice to the employer.

Business partners shall ensure that workers are not subject to inhumane or degrading treatment, corporal punishment, mental or physical coercion and/or verbal abuse.

All disciplinary procedures must be established in writing and are to be explained verbally to workers in clear and understandable terms.

takko.com

TAKKO FASHIONCODE OF CONDUCT

011.1

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Level 20 is a not for profit organisation, set up in 2015, to inspire more women to join and to succeed in the private equity industry. In the year of its launch, women occupied around 5% of senior roles in the European industry, Level 20’s aim is to increase the number of senior women in leadership positions in the industry. Apax Partners became a founding partner of Level20 in 2015

Great Place to Work® is the global authority on building, sustaining and recognizing High-Trust, High-Performance Culture™ at workplaces. Great Place to Work® Certification is the easiest way to quantify company culture, benchmark against the world’s most successful companies, and grow a business. The Great Place to Work Institute is the organization that annually compiles Fortune’s list of the “Best Companies to Work For.” The Institute has long been the global authority on “high-trust, high-performance workplace cultures” across industries and geographic markets. (See ECI page 9).

AnitaB.org is a global nonprofit organization based in Palo Alto, California. The institute’s primary aim is to recruit, retain, and advance women in technology. The institute’s most prominent program is the Grace Hopper Celebration of Women in Computing Conference, the world’s largest gathering of women in computing. The Anita Borg Top Company for Technical Women Award recognizes companies for their recruitment, retention, and advancement of technical women. The first Anita Borg Top Company for Technical Women Award was awarded to IBM in 2011 and Apax portfolio company Thoughtworks won the award in 2016, 2017 and 2018. (See page 9).The PRI is an investor initiative in partnership with UNEP Finance Initiative and UN Global Compact

ESG MONITORING, REPORTING AND DIALOGUE IN PRIVATE EQUITY

Read more An investor initiative in partnership with UNEP Finance Initiative and UN Global Compact

THE LIMITED PARTNERS’ RESPONSIBLE INVESTMENT DUE DILIGENCE QUESTIONNAIRE AND HOW TO USE IT

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An investor initiative in partnership with UNEP Finance Initiative and UN Global Compact

R I TRANSPARENCY REPOR T

201 7

APAX PARTNERS LLP

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Modern Slavery Statement February 2019

Responsible Investment Policy July 2017

Modern Slavery Statement Responsible Investment Policy

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Apax Partners Sustainability Report18

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Apax Partners Sustainability Report19