Private Equity Permira Annual Review 2008

Permira Funds’ 2008
Annual Review
Portfolio
2009
1
Contents
01 Introduction
02 2008 in review
Permira is a European private equity firm with a global
06 Message from the Chairman reach. Our funds, raised from pension funds and other
10 Message from the Managing Partners investors, make long-term investments in companies
12 2008: key figures
13 Introduction with the ambition of transforming their performance
14 Delivering value
15 Background: 2008 and driving sustainable value growth.
15 Outlook: 2009
17 Building and protecting value
17 A responsible approach
18 Planning for the future The Permira funds’ investment activity focuses
22 Realisations 2008 on six core sectors: Chemicals, Consumer,
30 Investing in society Financial Services, Healthcare, Industrial
32
32
Permira overview
Permira’s competitive advantage Products and Services and Technology, Media
34
36
Permira’s investors
Governance and Telecommunications. The firm’s teams are
38 Our portfolio based in Frankfurt, Guernsey, Hong Kong, London,
40
42
Portfolio overview
Acromas
Luxembourg, Madrid, Menlo Park, Milan, New York,
44
46
All3Media
Arysta LifeScience
Paris, Stockholm and Tokyo, advising funds with a
48
50
Birds Eye iglo Group
BorsodChem
total committed capital of approximately €20 billion.
52
54
Cognis
Cortefiel
Since 1985, the Permira funds have completed over
56 DinoSol Supermercados 190 private equity investments.
58 Freescale Semiconductor
60 Gala Coral Group
62 Galaxy Entertainment Group
64 Marazzi Group This year’s annual review is published in the midst
66
68
Maxeda
NDS of severe global economic turmoil. In 2008 we
70
72
New Look
Principal Hayley Group managed to realise significant sums for our
74
76
ProSiebenSat.1
Provimi investors. Throughout the year our portfolio
78
80
Seat PG
Sisal
companies took a number of steps to deal with the
82
84
TDC
Telepizza
effects of the downturn while taking advantage of
86 Valentino Fashion Group new opportunities when they did emerge.
88 Appendix
88 Walker “Guidelines for Disclosure
and Transparency in Private Equity”
This year’s review also highlights the results of
89 Contact details
Permira’s social investment programme, which has
List of images
04 NDS – ‘Secure platforms’ continued its success in applying the private equity
08 All3Media – ‘The youth of today’
20 Arysta LifeScience– ‘Towards the sun’ skills at Permira to help scale-up social enterprise.
28 Provimi – ‘Feed them and they will come’
Permira Annual Review 2008

2 3
2008
+ €2.3 billion returned to investors + debitel and Jet Aviation
(pages 13-14) sold to corporate buyers
(pages 24-27)
+ New investments in Arysta
LifeScience (page 46) and + Valuation of overall investment
Marazzi (page 64) completed; portfolio down by 36% on
investment in NDS announced previous year, reflecting the
(page 68) fall in public markets and a
tougher operating environment
+ Management and staff (page 14)
at every portfolio company
responding to pressures and + Permira IV fund reorganisation
opportunities with determined completed, addressing
action, supported by Permira liquidity constraints being felt
investment professionals by a small number of investors
(page 17; 38-87) (page 18)
Permira Annual Review 2008 Permira Annual Review 2008

4 5
+
Secure platforms
NDS (page 68), the Permira funds’

latest investment, allows media
companies to deliver content
securely to homes around the
world. NDS’s solutions use
ground-breaking technology; not
that viewers will notice, they’re too
busy enjoying the show.

6 7
In many ways,
Looking back is a great deal easier right now than The short term outlook may be uncertain, but we
looking forward. In many respects, Permira had can be sure that the current turmoil will bring lasting
a strong year in 2008, with a string of successful changes to our industry on a number of fronts. It will,
company sales that generated €2.3 billion in returns for example, be a very long time before the prefix mega
the nature of this

for our investors (pages 13-14). We also completed is applied again to the industry’s activity; investments
two investments in market leading companies, Arysta will be smaller, albeit there will still be opportunities to
LifeScience and Marazzi Group. invest in and transform many businesses. There may
well be a higher degree of regulation than before, which
But the darkening financial crisis and accelerating will mean working even more closely with lawmakers
downturn will play

economic decline began to affect our business and regulators. And private equity will have to live with a
on a number of fronts. It slowed our investment very different financing environment. It is also likely we
activity, impacted the operating performance of some will see the alignment of interests between private equity
of our companies and tested the resilience of some of firms and their investors, a key strength of this industry,
our investors’ own funding. It is for that reason that we further reinforced.
to our strengths. We
took the unprecedented step of offering investors an
opportunity to cap their future commitments to our In many ways, the nature of this downturn will play to our
latest fund (page 18). Although not an easy decision, strengths. The business landscape will be different for
we believe this was the right thing to do and we are all companies in the future and we have an established
grateful for the overwhelming support we received. record of supporting transformation at businesses
have an established
during difficult periods – debitel (page 26) is just one
I have not experienced such a lack of clarity about example of this – and we are ready to take a similar
the outlook in my career and there may be worse to approach with new investment opportunities in the future.
come before we see a recovery. Our investments are
well-diversified across geographies and sectors and Our industry is still relatively young and it will learn
record of supporting
yet they are all, to varying degrees, feeling the effects from today’s crisis, embrace these challenges and
of this unusually synchronised downturn. So it calls for adapt successfully to the new environment. Indeed,
unrelenting action and focus. We are working harder private equity should play an important part in helping
than ever with the management and employees of our to rebuild economic activity. The combination of patient
transformation
investee companies, dedicating more resources and capital and engaged shareholders has rarely been in
adapting plans for the businesses to reflect the fast greater demand.
changing environment.
Finally, I would like to acknowledge all those at Permira
We have taken some difficult decisions over the last who have been working on our Breakthrough initiative,
at businesses during
year and there will be more to come in the months which began in 2005, and other social investment
ahead, as we seek to secure the long-term future of programmes. It felt in 2008 that we had, after three
the Permira funds’ companies. The same is true of any years, finally achieved our objective of helping some
business right now, public or private. of the enterprises we have backed to breakthrough.
The success of Law For All and others in expanding
difficult periods.
We are prepared for this and we know from past their activities and maximising their social impact feels
experience that the private equity ownership model to us to have validated the model of marrying capital
affords us the advantage of being able to act quickly with business skills to support social enterprises.
and decisively. It will take some time to steer through We look forward to continuing this partnership.
this period towards recovery, but this suits our
long-term investment horizon.
Damon Buffini
Chairman, Permira
Damon Buffini
Chairman

8 9
+
The youth of today
All3Media (page 44) is leading the

industry in creating high quality,
compelling content for television
and online platforms. The new cast
of Skins (shown here) feature in the
show’s third successful season.
Skins is one of the highest-rated
shows on UK multi-channel TV.
It has been successful at attracting
and retaining a younger audience,
and is where Slumdog Millionaire
star Dev Patel launched his career.

10 11
Throughout 2008 we remained focused on

returning cash to our investors while supporting
the performance of the businesses within our
funds’ portfolio.
We deployed more resources than ever to work
with the management teams of our portfolio
companies, and while some faced a number
of challenges, many demonstrated robust
performance.
Kurt Björklund Tom Lister
Co-Managing Partner Co-Managing Partner

12 2008: key figures Introduction 13
Message from the

Managing Partners
2008 was one of the most
challenging periods yet
experienced by private
equity. Financial markets
€2.3 bn 36 saw significant downward movement; credit was severely

% constrained; and for much of the year commodity prices
remained high. As 2008 progressed global economic
activity contracted while business and consumer
The Permira funds returned The overall value of the confidence declined.
€2.3 billion to investors Permira funds’ portfolio was
last year written down by 36% on the The more difficult trading environment was reflected
previous year, reflecting a in different ways in the performance of our portfolio
tougher market environment companies. The valuation of our portfolio in aggregate
and a fall in public market fell by 36% on the year, primarily as a consequence
comparables of the decline of financial markets combined with some
earnings pressure.
In these conditions, we remained focused on returning
420 70
cash to our investors and building and defending value
within the portfolio. We returned €2.3 billion to our
% investors from selling investments in 2008, while deploying
more resources than ever to support the management of
debitel added approximately The size of the workforce at our portfolio companies as they took pre-emptive action
420 points of sale to its retail Jet Aviation grew by 70% over to address the recession but also
network while under Permira the course of the Permira to continue driving growth.
funds’ ownership. debitel funds’ ownership. The
was sold to Freenet in Permira funds sold Jet
July 2008 Aviation to General Dynamics
in November 2008

14 Message from the Managing Partners Message from the Managing Partners 15
Delivering value… In July, the Permira funds sold 2008 also saw the Permira funds commit to invest Background: 2008 2008 began much as 2007 Outlook: 2009 2009 will present even more
debitel (page 26), a mobile €2.0 billion to acquire a number of attractive companies ended. In the first half of 2008 significant challenges. It is now
phone services company that and to support existing investments. The funds acquired there was a continuation of the clear that we are in a global
had been in the Permira portfolio Arysta LifeScience (page 46), a global agrochemicals sharp slowdown in private equity recession which is causing
since June 2004, to German business, in February in a transaction value at investment activity that began in the final two quarters severe pressure on all businesses, be they publicly
telecoms group Freenet, in a transaction valued at €1.9 billion. Recent activity has focused on driving of 2007 (see chart below). The volume of private equity or privately owned. Our focus in these times remains
€1.6 billion. The debitel business was transformed growth and improving the way Arysta manages its investment in Europe in the first half of 2008 fell to firmly on supporting the management of our portfolio
by Permira funds’ ownership, almost doubling EBITDA global supply chain. €62.7 billion compared to €138.0 billion in the same companies through this period. We are working closely
and significantly growing sales by making a number of period in 2007. Activity in Asia and North America and constructively with management teams to address
acquisitions, undergoing a strategic re-positioning and The Permira funds also acquired Marazzi Group showed similar trends. the challenges caused by the recession, and
installing new management. (page 64), a worldwide leader in the design, importantly to focus on building businesses that will be
manufacture and distribution of ceramic tiles, in July; The failure of Lehman Brothers, in September 2008, successful in the long term. Most of our funds’ portfolio
In November, the Permira funds sold the Swiss-based the transaction was valued at €1.4 billion. The plan for accelerated the crisis by delivering a hard blow to companies are leaders in their markets and the current
business Jet Aviation to defence and aviation group Marazzi is to drive growth over the long term and shift already fragile confidence in corporate and financial environment will, in many cases, present attractive
General Dynamics (page 24), in a transaction valued the company towards more high value products. markets. By the final quarter of the year, many opportunities for them to gain market share.
at €1.5 billion. Jet was acquired by the Permira funds businesses were coming under extreme pressure,
in October 2005, following a three-year origination In the same month we announced that the Permira brought about by a collapse in confidence and closed Although new investment activity is likely to remain
process. Since then Jet has grown considerably, with the funds had agreed to acquire NDS Group (page 68), a credit markets. The amount of private equity investment subdued throughout the year, we expect that attractive
Permira funds backing a substantial capital expenditure supplier of encryption technologies for television and fell further, from its already low levels (see chart below), new opportunities will emerge over the coming
programme to transform the company into a genuine other media platforms, in a public-to-private transaction. during this period. 6 to 24 months. Our geographic and sector teams are
world leader in the provision of services to the private The acquisition of NDS was carried out in partnership active in the marketplace so that we are well-positioned
aviation market. Jet’s sale demonstrates the enduring with News Corporation, which founded NDS and to take advantage of such opportunities. History has
demand from corporate buyers for strategic assets. maintains a significant interest in the business. The shown that times of economic turbulence can, over the
transaction was completed in February 2009, at a value long term, yield strong returns.
The Permira funds also completed the sale of two other of €2.4 billion.
companies – Aearo and Intelsat – that were agreed in
2007 (page 23). The result of the increasingly difficult economic
environment was a decline in the valuation that we
A strong focus on returning cash to investors through a place on the Permira funds’ portfolio companies.
period of market liquidity and high valuations meant that The value of the overall investment portfolio fell by 36%
we realised a total of €11.3 billion from 2005 onwards in 2008 compared with the previous year (we carry out
and €14.8 billion since the start of the decade. This the valuation of our investments using the International Buy-Out Activity (€bn) European Buy-Out Activity (€bn) 2001-2008
meant that our three mature pan-European funds Private Equity and Venture Capital Valuation Guidelines, in Major Markets 2007-2008
(Permira Europe I – PE1, Permira Europe II – PE2 and which set out best practice and provide a framework for
Permira Europe III – PE3) have all returned more capital arriving at a Fair Value for the underlying investments).
than they have drawn from investors and there is still Although the valuation of our portfolio fell this year, the 220
significant unrealised value in the portfolios of both Permira funds make long-term investments and we are 205
PE2 and PE3. working with all of our portfolio companies to build value
over the holding period lasting, on average, five years.
74.9
71.3
176
63.8
63.1
62.1
57.4
Number of investments
Permira Funds Investments and Realisations,
52.1
132
2005-2008 (€bn, cumulative)
46.4
44.7
11.3
39.1
411.7
34.9
33.7
9.3
88
9.0
30.6
30.3
29.1
8.0
27.8
27.4
26.6
23.5
239.2
21.9
20.7
19.6
70.1% decline
19.4
19.3
19.2
5.5
56.7% decline
16.0
4.6
14.0
13.9
44
123.1
46.3% decline
10.6
10.5
103.6
2.6
9.6
9.4
1.8
44.7
24.0
0
2005 2006 2007 2008* North Europe Asia 2001 2002 2003 2004 2005 2006 2007 2008
America
Invested Realised 2007 2008 Value (€bn) Number of investments Q1 Q2 Q3 Q4

*Not including NDS acquisition, completed 2009 (Source: Permira) (Source: Mergermarket Jan 2009) (Source: Mergermarket Jan 2009)

16 Message from the Managing Partners 17
In 2009 the focus

Building and In 2008, building and protecting A responsible We have a robust set of Business
protecting value… value in our portfolio meant approach... Principles to guide the behaviour
working with the management of all our professionals and
and staff of portfolio companies underpin the way we operate.
continues to be on
to identify positive opportunities as well as taking early All Partners and employees of Permira are expected to
and decisive action to respond to deteriorating trading conduct their activities in accordance with both the letter
conditions. In 2009 the focus will continue to be on and the spirit of these principles. Furthermore, we
improving liquidity, preserving cash, controlling costs, expect our portfolio companies to adopt their own
ensuring the right management is in place and appropriate business principles.
improving liquidity,
supporting growth and innovation. We are closely
monitoring the balance sheets of the funds’ companies, Once an investment has been made, the performance
and when appropriate, working pro-actively to of portfolio companies is closely monitored by members
restructure balance sheets, reducing the overall level of the investment teams, supported by our Portfolio
of debt to reflect the current market. Group and the Investment Committees (page 36).
preserving cash,
The focus is on creating sustainable operational
Detailed plans have been formulated at every one of improvement, as well as monitoring the effect of
our portfolio companies. They deal with maximising management of risk, therefore delivering returns to
efficiency as well as targeting growth initiatives so our investors.
attention is given both to protecting and growing the
controlling costs,
funds’ investments. ProSiebenSat.1 (page 74), for Permira is currently a member of the steering group for
example, is driving a process of reducing costs and the United Nations-backed Principles for Responsible
strengthening its position as a European broadcasting Investments Private Equity work stream, which gives
champion. Actions include relocating the headquarters us the opportunity to guide and inform our sector’s
of the Sat.1 channel from Berlin to Munich, where the approach to responsible investment. This initiative is still
ensuring the right

rest of the group’s channels are based, as well as ongoing but earlier this year resulted in the US Private
streamlining a number of other group assets. At HUGO Equity Council, of which we are a member, developing
BOSS, part of Valentino Fashion Group (page 86), a set of comprehensive responsible investment
Claus-Dietrich Lahrs, the former managing director of guidelines, to which we have become a signatory.
management
Christian Dior Couture, was appointed as chief They cover environmental, social, labour and governance
executive. More details of work in the portfolio are issues and we believe they are a considerable step
contained in the ‘Our Portfolio’ section (pages 38-87). forward in demonstrating our commitment to
responsible behaviour in our investment activity.
Despite the worsening economic environment, many
is in place and
of the Permira funds’ portfolio companies are showing
robust performance. Clothing retailer New Look
(page 70), for example, has performed well and in the
14 week period to 3 January 2009 grew like-for-like
sales by 2.8%, which made it one of the best-performing
supporting growth
fashion names on the UK high street. Similarly,
Telepizza (page 84) performed well in 2008 with
revenues increasing to €401 million from €377 million
in 2007, driven by a strong brand and a well-regarded
product and service offering. Birds Eye iglo’s
and innovation.
performance has also improved. Sales of the ‘Birds Eye’
brand grew by 5.5% in 2008, driven by new product
launches and investment in marketing.
Elsewhere, TDC (page 82) has launched new, innovative

broadband services while strengthening its cost
position resulting in EBITDA growth of 5% and Sisal
(page 80) has increased sales by 17%.
The process of strengthening the portfolio is being

supported by the newly created Permira Portfolio
Group, which is made up of a number of highly qualified
executives with substantial experience of business
transformation at some of the world’s leading companies.

18 Message from the Managing Partners 19
We will adjust to the

Planning for We have taken steps to ensure The world is faced with greater turbulence than we have
the future… that Permira is well-placed to ever before experienced in our careers. Businesses
thrive as we move towards our under all forms of ownership are facing the need for
third decade. We have rapid and dramatic adjustment to a new set of
environment as we
strengthened our team by appointing Henry Chen to commercial realities. This adjustment is a necessary
lead our Hong Kong office and John Coyle as head of precondition, in many cases, for survival, but it is also
our New York office. We also appointed Brian Ruder as an opportunity for all businesses to build long-term
a partner based in our office in Menlo Park, California. value in a new marketplace.
have many times

We launched two new sector teams in 2008. Our new Our business has been built over 25 years on the basis
Financial Services team is being led by James Fraser, of successfully transforming the companies the Permira
who has joined us from L.E.K. Consulting where he was funds have backed. We believe that our skills in
co-head of the Global Financial Services Practice. business transformation, our focus on operational
Permira has also launched a Healthcare sector team, improvement and the patient but direct governance
before, but value

led by Sally Flanagan, an existing member of the model of private equity are more relevant in the current
Permira team. Prior to joining Permira in 2006, Sally environment than ever before. It is our view that private
spent six years at another private equity firm where equity will have an important role in taking many
she was a director responsible for investment in companies through this recession. We will be working
healthcare opportunities. in partnership with other owners, management teams,
creation through
employees and governments to bring to fruition the
Throughout 2008, we maintained our approach of close necessary change and new strategies critical to
contact with our investors (page 34), mindful of the operating in this changed world.
shifting state in financial markets and across asset
classes. It became clear early in the fourth quarter that We will have to adapt to a new economic, regulatory
positive transformation
a small number of them were experiencing liquidity and competitive environment. Private equity is, however,
constraints as a result of the global financial crisis. an extremely entrepreneurial commercial activity and
Consequently we offered the investors in our latest fund, we will adjust to the environment as we have many
Permira IV, the opportunity to cap their outstanding times before – but value creation through positive
of businesses will
commitments to the fund at the cost of accepting a transformation of businesses will always remain at the
reduction in their entitlement to future distributions. core of what we do.
In December we announced that we had successfully

completed the reorganisation of the fund and 90% of
always remain at the

investors elected to maintain fully their commitment.
The outcome saw a reduction in the size of the fund
Kurt Björklund Tom Lister
from its original €11.1bn to €9.6bn, ensuring we have a
Co-Managing Partner Co-Managing Partner
solid funding base and capital to invest in the attractive
opportunities that we anticipate in the coming years.
Our role as a private equity firm is to transform the

performance of the businesses we back and, in doing
so, grow their value and generate strong returns for our
investors. This happens over the long term; it takes time
to implement positive and sustainable change at a
core of what we do.
company. On average we hold businesses for
approximately five years and our funds have a life of
10 years or more. It is on this basis that we will work
with our portfolio companies.

20 21
+
Towards the sun
Arysta LifeScience (page 46) is the

world’s largest privately-held
agrichemicals business.
Since being acquired by the
Permira funds Arysta has focused
on growth and operational
excellence, growing and
developing, much like the
crops its products protect.

22 Realisations 2008 Realisations 2008 23
Realisations 2008
08
Company Date of Realisation Business transformation under Permira funds’ ownership
Jet Aviation November • Transformed Swiss-centric family company into a global leader
in business aviation
2008 • Acquisitions and alliances supported expansion into the US,
Russia and China
• Improved performance: sales grew at a CAGR of 25%;
EBITDA almost doubled
• Workforce grew by 70%
debitel July • Grew substantially under Permira funds’ ownership: value

creation plan based on growth through acquisition and
2008 management team renewal
• Actively drove consolidation of German telecoms market through
acquisition of ‘_dug’
• Became number one distribution platform of mobile phone
services in Germany
• Substantial sales and EBITDA growth
Aearo April • Manufacturer of personal protection equipment

• Strong growth, driven by expansion into European markets
Technologies 2008 • Sales grew by 23% over the course of Permira funds’ ownership;
(Announced 2007) EBITDA increased by €23 million
• Initiative to expand technological capabilities supported by
alliances and joint ventures
Intelsat February • Provider of fixed satellite services

• Growth organically and through acquisition
2008 • Merger with PanAmSat to form the world’s largest commercial
(Announced 2007) fixed satellite service provider
• Number of satellites operated by Intelsat grew from 27 to 53
• Sales grew from €792 million to €1,137 million

24 Realisations 2008: Jet Aviation Realisations 2008: Jet Aviation 25
Jet Aviation www.jetaviation.com

+
Transformed Swiss-centric
Jet Aviation (Jet) Sector family company into a global
IPS leader for business aviation
is a Swiss-based
Value creation plan based on
international Source investing significant capital
business aviation Family Owner to support growth
services company. The company provides Employees

Acquisitions and alliances
supported expansion into
service, completions and refurbishment, 5,600 the US, Russia and China
engineering and fixed base operations, Improved performance:

substantial increase in sales
along with related aircraft management and Ownership
and EBITDA
Majority
charter services.
Date of Investment
October
In October 2005, after a three-year Throughout its period in the Permira funds’
2005
origination process, a company backed portfolio, Jet expanded into new fast-growing
by PE3 acquired Jet from the company’s markets. The company set up line Date of Realisation
founding family. Following acquisition, the maintenance operations in Moscow’s
Permira funds backed an ambitious value Vnukovo International Airport and moved
November
creation plan, transforming a Swiss-centric forward with plans to open new facilities 2008
family company into a global leader for at Beijing’s Capital International Airport in
business aviation services. The Permira partnership with Beijing-based Deer Air.
Permira Representatives
+
funds helped Jet become more focused
Jörg Rockenhäuser
and efficient, establish a world class On a reported basis, sales grew at a CAGR
Torsten Vogt
management team and invest significant of 25% from 2005 to 2007 and the value of
capital to support growth. Carl Hirschmann, the order pipeline at Jet increased from
a member of the family that founded Jet €50 million at the date of the fund’s
(and a minority investor alongside the investment to €1.2 billion by June 2008.
Permira funds), explains: The company’s workforce also grew by
70% to around 5,600 employees. Jet is
“Permira allowed Jet to grow at a speed now one of the leading business aviation
and with a determination which we could services companies in the world.
not have managed as a family-owned
company. Furthermore, Permira supported In August 2008, despite the global economic
the professionalisation of the business as downturn, it was announced that Jet was to
a key enabler for the rapid expansion.” be acquired by global defence and aviation
group General Dynamics.
Immediately following acquisition, a
programme office was established that The sale of Jet shows the resilience of
focused on industrialisation and scalability demand from trade buyers for strategically
of existing processes in the organisation, important assets, especially when the
adding €35 million to EBITDA after only two impact of operational change has been
years. To expand capacity, more than to transform the asset’s performance
€60 million was invested in new facilities, and market position.
leading to the construction of one of the
largest aircraft hangars in Europe. Located
Sales and EBITDA at Jet over
at Basel’s EuroAirport, the new 9,600 square
metre wide-body hangar was opened in the course of Permira funds’
May 2008 and took just seven months ownership – €m
to complete.
Jet also expanded by making strategic

787
685
acquisitions. In March 2006, it acquired

502
Midcoast, a US-based aircraft maintenance

and modification company, which expanded
significantly the company’s presence in
103
North America. More recently, in January

83
56
2008, Jet acquired US-based maintenance

and completions company Savannah Air 2005 2006 2007
Center to strengthen further Jet’s position
Sales EBITDA
as a full business aviation service provider
in North America. In total the Permira funds (Source: Permira. Exchange rate €1=CHF 1.655)
backed an investment of US$300m in Jet’s
US business.
26 Realisations 2008: debitel Realisations 2008: debitel 27
debitel www.debitel.com
debitel is a mobile Sector

TMT (Telecoms)
phone services
provider based Source
in Germany. The Corporate
company serves over 14 million customers and Employees
is the number one distribution platform for 3,700
mobile phones in Germany. The company offers
a wide range of telecommunication products, Ownership
Majority
including mobile and fixed-line telephony as well
as internet services. Date of Investment
June
debitel covers all German operators • Consolidation and market leadership - the 2004
(T-Mobile, Vodafone, eplus and O2) and company actively drove the consolidation
has a number of exclusive relationships of the German mobile telephony market.
Date of Realisation
with German retailers. debitel operates a The acquisition of ‘_dug’, the largest
retail network of more than 6,000 sites in independent retailer of mobile telephony July
+
Germany alone. products in Germany, was key to growing
debitel’s retail chain from around 80 at the
2008
debitel was acquired by a company time of the initial investment to more than
backed by PE3 from Swisscom in June 500 owned outlets by 2008. This growth Permira Representatives
2004. The value creation was based on allowed debitel to reduce significantly its Jörg Rockenhäuser
three major levers: dependence on indirect distribution Martin Fark
channels. In July 2007, debitel acquired
• Restructuring and cost leadership – debitel Talkline, the third largest mobile service
came out of a period of uncertainty, with a provider, giving debitel 3.8 million
failed participation in the German UMTS additional customers. As a result debitel
auction, a poor operational situation with achieved market leadership, becoming
many loss-making divisions and unstable the number one distribution platform
relationships with its partners. After the of mobile phone services in Germany,
investment by the Permira funds, debitel ahead of Vodafone and T-Mobile. The full
re-established reliable long-term integration of Talkline, _dug and debitel is
partnerships with its key business partners, expected to deliver another €100 million of
i.e. mobile network operators as well as savings, which will contribute strongly to the
large retailers. In parallel, significant cost high cashflow performance of the company
+
reduction was implemented through the
establishment of the programme office. After becoming the clear market leader in
This programme office implemented three the German mobile market, debitel attracted
Mobile phone services far-reaching operational improvement the interest of the Freenet Group, which was
provider acquired in 2004 programmes resulting in an annual EBITDA the second largest mobile service provider at
from corporate seller. Grew contribution of €160 million in 2008. To drive that time. Following the clear industrial logic
substantially under Permira this, a ‘best in the industry’ management of continued market consolidation, debitel
funds’ ownership team was introduced was sold to Freenet in July 2008.
Value creation plan based • Focus and evolution of business model – Sales and EBITDA at debitel
on growth through a strong regional focus was placed on over the course of Permira
acquisition and renewal the German core market with the sale funds’ ownership – €m
of management team of debitel’s international sub-scale
subsidiaries in Denmark, France and
Slovenia. At the same time, the company
3,696
Substantial sales and
improved its business model in Germany
2,736
2,616
EBITDA improvements
by instituting higher margin contracts with
Sold to synergistic features typical of mobile virtual network
corporate buyer in 2008 operators and broadening the product
spectrum through the inclusion of DSL
255
172
160
and original MNO-products
2005 2006 2007
Sales EBITDA
2007 figures proforma for acquisitions/realisations
(Source: Permira)

28 29
+
Feed them and they will come
Animals in more than 100 countries

(including these cows) eat Provimi
(page 76) food every day. Although
Provimi, like any other business, is
feeling the effects of the economic
downturn, it is continuing with
its plans to focus on higher
value-added segments of animal
nutrition that offer attractive
growth prospects.

30 Investing in society Investing in society 31
Investing in society Breakthrough Portfolio break through

Scaling up social enterprise
We invest in a number of enterprises that operate on a Scaling up In the UK, we invest in and work
not-for-profit basis. We have found that our skills and social impact: with social enterprises through FareShare Green-Works Law For All
experience can be used to help strengthen the voluntary the Breakthrough the Breakthrough funds, which www.fareshare.org.uk www.green-works.co.uk www.lawforall.org.uk
sector, allowing charities and social enterprises to funds were founded in partnership
improve this effectiveness, and therefore maximise their with CAN (Community Action
social impact. Network). The Breakthrough funds’ focus is on investing
in social enterprises with a record of sustainable
We have a social investment programme because performance that have the capacity and potential to Date of investment Date of investment Date of investment
we want to contribute to our community, but we also scale up their operations. July 2007 July 2006 May 2006
benefit. Members of the Permira team who work with
our social enterprises find that they learn a lot from our The Breakthrough funds provide equity-like funding,
partners in the voluntary sector. mentoring from Permira professionals, and business FareShare is a national UK charity Green-Works is an award-winning social Law For All is a charity which exists to
support through tailored projects; the close interaction supporting communities to relieve food enterprise dedicated to recycling office provide high quality and cost effective
Our goal is to help the social enterprises that we between the social enterprises and the Permira team poverty by providing surplus ‘fit for furniture and providing employment for social welfare law services to clients of
invest in scale up their activity and maximise their is as important as the funding. Breakthrough does not purpose’ product from the food and vulnerable people. limited means.
impact. The challenges incumbent with such expansion provide start-up funding, but concentrates its efforts drink industry to organisations working
– maintaining standards; managing logistical and on supporting established social enterprises – with with disadvantaged people in the
technological requirements; sustaining the culture a minimum of three years’ trading history and a community.
that drove the business’ formation – these are the profitable, scalable business model.
challenges that both our social and private equity
TimeBank Training For Life Speaking Up
portfolios face. The first Breakthrough fund, Breakthrough I (B1) was
www.timebank.org.uk www.trainingforlife-city.org www.speakingup.org
launched in June 2005 and has invested in five social
enterprises. As a result the social enterprises’ revenue
Investing in In Germany, Permira supports has grown by 20% and their social impact (based on
Germany’s future: Off Road Kids (ORK), a social relevant social impact metrics, e.g. amount of furniture
Off Road Kids enterprise which works to help recycled) has grown at around 40% a year. The second Date of investment Date of investment Date of investment
and support homeless young Breakthrough fund, Breakthrough II (B2), launched in
people across Germany. ORK operates a nationwide October 2007, and made two new investments while July 2006 October 2006 June 2008
network of social workers who have helped get more making a number of follow-on investments in existing
than 1,400 children off the streets and into more fulfilling Breakthrough social enterprises.
lives over the last 15 years. One of ORK’s goals is to TimeBank is a national charity that Training for Life is a charity that seeks Speaking Up provides advocacy
raise the standard of youth care in the German encourages people to volunteer in their to tackle unemployment and poverty services, self advocacy-based projects
education system. As many as 250,000 educators The Private Permira is a member of the communities, and that helps other by working with people from diverse and resources for people with learning
working in German primary schools in a social care Equity Foundation Private Equity Foundation (PEF), charitable organisations and businesses backgrounds, who, for a variety of difficulties, mental health issues and
setting are without formal qualifications. ORK is seeking a leading venture philanthropy to develop innovative and effective reasons, have faced barriers to work physical disabilities.
to correct this deficiency by transferring the charity’s fund which works with carefully selected charities to volunteer recruitment programmes. and, consequently, become trapped
years of experience into Germany’s universities. empower young people to reach their full potential. in poverty.
Its investments address the NEET (young people not in
Permira joined forces with ORK in 2007 to support this education, employment or training) issue and include Teach First
goal by helping to strengthen and formalise its activity. not just money but also pro bono expertise from the www.teachfirst.org.uk
Having identified possible areas of improvement, private equity community.
Permira helped ORK to set up a professional
management team including hiring a new chief
operating officer and chief financial officer,
appointments which Permira has committed to fund Date of investment
over a three-year period. November 2008
Permira has also helped ORK fulfil its ambition of

founding and funding a university department Teach First’s mission is to address
dedicated to raising the standard of support for educational disadvantage by
homeless young people in Germany. In October 2008, transforming exceptional graduates
the first students began studying at the Instituts für into effective, inspirational teachers
Pädagogikmanagement (IfPM) – the Institute for and leaders in all fields.
Educational Management – which operates from
ORK’s base in Bad Duerrheim in the Black Forest
in partnership with Steinbeis-University, Berlin. The
students will graduate with a Bachelor of Business
Administration (BBA) after three years and with the
benefit of learning from ORK’s experienced and
dedicated team.

32 Permira overview Permira’s competitive advantage 33
Permira’s
competitive
advantage Offices We believe that a period of private equity ownership can
be a powerful way to strengthen a company’s long-term
Frankfurt prospects and help it reach its full potential. The
partnership we have formed with the companies in
Guernsey Permira funds’ portfolio can be especially valuable
in challenging times when there is a particularly
Hong Kong pressing need for focus, clarity of purpose and
London long-term orientation.
Luxembourg Permira professionals, with their wide range of

backgrounds and nationalities, have the sector
Madrid expertise and experience to work with the management
and staff of the funds’ portfolio companies to contribute
Menlo Park real value to the decision-making process.
Milan Our international network of offices also helps support
New York the global ambitions of the businesses owned by our

funds as they look to enter new markets, find acquisition
Paris targets or develop new customer and supplier
relationships. Our funds’ investments provide them with
Stockholm access to the financial resources they need to invest
and grow. We believe this is a powerful combination of
Tokyo knowledge, network and capital that can bring real
benefits to businesses as they look to develop and thrive.
Sectors The strength of our organisation relies on our local

presence, sector expertise and transactional specialism.
Chemicals Our professionals are incentivised to contribute to the
full breadth of our investment activity spanning all
Consumer offices and sectors. As a result we are always able
to move the right resources to the right opportunities.
Financial Services
Healthcare
Industrial Products and Services
Technology, Media and Telecommunications
Functional expertise
Financing
Risk Management
Transaction Structuring
Portfolio Support

34 Permira overview Permira’s
Our investors 35
Permira’s investors:
Investor base of Permira IV, by size of commitment*
Investor base of Permira IV, by size of commitment*
long-term investment, We are primarily focused on the

consistent returns long-term performance of the
investments in the Permira funds.
Other financial institutions 26%
The funds have consistently outperformed the stock Charities &

Banks foundations
market and industry benchmarks over the past 20 years Government 3% 4%
(opposite page). Permira’s first three international entities Insurance
12% cos
buy-out funds, Permira Europe I (PE1), Permira Europe II 7%
(PE2) and Permira Europe III (PE3) continue to deliver
aggregated top quartile returns compared to
EVCA/Thomson Financial benchmarks on a vintage
fund basis. They have also returned more than Corporate
committed capital and still have considerable value pension
in the portfolio. funds
7%
Publicly
Investors in our most recent fund include: Pension listed
• more than 30 million pension fund beneficiaries funds Public funds
pension 27%
(current and future) 38%
funds
• over 40 charities and foundations 31% Investment
• over 20 life insurance companies managers
• eight governmental development agencies 36%
Institutional
Towards the end of 2008 we offered investors in fund managers
our latest fund, Permira IV, the opportunity to cap 9%
their outstanding commitments to the fund at the
cost of accepting a reduction in their entitlement to
future distributions (page 18).
In December 2008, we announced that we had

successfully completed the reorganisation of the fund *Following fund reorganisation. Note: Excludes general partner commitments / co-investment schemes (Source: Permira)
with overwhelming approval from the investors and 90%
of investors electing to maintain fully their commitment.
The outcome saw a reduction in the size of the fund Geographical location of Permira IV investors, Recurring and new investors in latest fund,
from its original €11.1bn to €9.6bn, while ensuring we by size of commitment* by size of commitment*
have adequate capital to invest in the opportunities
that we anticipate in the coming years.
Middle East
We place strong emphasis on the quality of the 3%
relationships we have with our investors. We believe New Investors
Far East
that this is reflected in the very high proportion of 9% 14%
them that have backed us across multiple funds.
Approximately 90% of capital in our most recent fund
was provided by investors who had been invested in North America
41% Existing Investors
previous funds.
86%
Europe
47%
*Following fund reorganisation (Source: Permira) *Following fund reorganisation (Source: Permira)
Permira funds, net annual IRR (internal rate of return)

vs stock market and peer group (€ IRR %)
26%
Permira buy-out funds
Industry upper quartile 18%
Stock market
7%
Since inception (1985–2008)
(Source: Permira, Datastream, Thomson Financial, Dec 2008)

36 Permira overview Governance 37
Governance
Strong corporate governance is 1 Damon Buffini 1 2 3
critical to our ability to maintain 2 Kurt Björklund
3 Nigel Carey
the highest standards at Permira. Permira Holdings 4 Martin Clarke
Limited is governed by three key bodies as described 5 Veronica Eng
below: the Board, the Investment Committees and the 6 Guido Paolo Gamucci
Executive Committee. 7 Paul Guilbert
8 Vic Holmes
9 Tom Lister
• The Board of Permira Holdings Limited is responsible
10 Carlos Mallo
for overall firm strategy, funding and new business 11 Carl Parker
development. It is chaired by Damon Buffini and 4 5 6
12 Jörg Rockenhäuser
comprised of the two co-managing partners, Kurt 13 Charles Sherwood
Björklund and Tom Lister, and a further three 14 Nicola Volpi
executives, Veronica Eng, Guido Paolo Gamucci and
Charles Sherwood, who also serve on the Investment
Committees, and three non-executives
• The Investment Committees of each Permira fund are

responsible for advising the fund on investment
decisions and the overall monitoring of the 7 8 9 10
funds’ investments
• The Executive Committee is responsible for the

management of the private equity business, including
investment performance and returns, resource
allocation and investment priorities, risk management,
investor relations, communications and people-related
matters. The committee is chaired by the two
co-managing partners, Kurt Björklund and Tom Lister. 11 12 13 14
The other members are Martin Clarke, head of the
Consumer sector team; Carlos Mallo, head of Spain;
Carl Parker, head of the TMT sector team; Jörg
Rockenhäuser, head of Germany; and Nicola Volpi,
co-head of Italy
Conflicts We have in place internal policies

of interest and guidelines which seek to
reduce the instances when
conflicts of interest arise and address conflicts that do
arise in a way that protects and deals fairly with the
interests of all those involved.
Relationships Permira professionals

with portfolio represent the interests
companies of the funds and monitor
the ongoing performance
of the funds’ investee companies, providing support
and advice when necessary. The appropriate
investment committee regularly assesses the
status of the Permira funds’ investee companies.
The Permira Board The Executive Committee Investment Committee

Damon Buffini Chairman Kurt Björklund Damon Buffini Chairman
Kurt Björklund Co-Managing Partner Kurt Björklund
Nigel Carey Non-Executive Tom Lister Veronica Eng
Veronica Eng Co-Managing Partner Guido Paolo Gamucci
Guido Paolo Gamucci Martin Clarke Tom Lister
Paul Guilbert Non-Executive Head of the Consumer sector team Charles Sherwood
Vic Holmes Non-Executive Carlos Mallo
Tom Lister Head of Spain
Charles Sherwood Carl Parker
Head of the TMT sector team
Jörg Rockenhäuser
Head of Germany
Nicola Volpi
Co-head of Italy

38 Our portfolio 39
Our portfolio
23
40 Portfolio overview
Portfolio
42 Acromas
44 All3Media
46 Arysta LifeScience
48 Birds Eye iglo Group
50 BorsodChem
52 Cognis
54 Cortefiel
56 DinoSol Supermercados
58 Freescale Semiconductor
60 Gala Coral Group
62 Galaxy Entertainment Group
64 Marazzi Group
66 Maxeda
68 NDS
70 New Look
72 Principal Hayley Group
74 ProSiebenSat.1
76 Provimi
78 Seat PG
80 Sisal
82 TDC
84 Telepizza
86 Valentino Fashion Group

40 Portfolio overview Our portfolio 41
Portfolio overview
23 –4
Location of Permira funds’ portfolio companies by number
Greater China USA

4% 4%
The Permira funds are The Permira funds sold Japan

4%
UK
31%
invested in 23 portfolio four investments in 2008: Denmark Hungary
companies Jet Aviation; debitel; and 4% 4%

Netherlands
Aearo Technologies and 9%
Intelsat, both announced

Germany
10% Italy
17%
in 2007 Spain
13%
(Source: Permira)
Sector split of Permira funds’ portfolio companies Maturity of Permira funds’ portfolio companies
+3 €39 bn
by number by number
Financial Services >6 years

4% 4%
IPS 4-6 years
The Permira funds made The combined sales 4%

Chemicals
17%
2-4 years
two new investments in of the Permira funds’ 18% 42%
2008: Arysta LifeScience portfolio companies is TMT

26%
1-2 years
22%
and Marazzi Group; the approximately €39 billion Consumer
investment in NDS was 48% <1 year
13%
announced in 2008 and

completed in 2009 (Source: Permira) (Source: Permira)

42 Acromas Our portfolio 43
Investment
Acromas Overview
www.acromas.com
Acromas is the holding company for The AA and Saga, two of
Sector Senior Management the UK’s most iconic brands with long traditions that inspire
Financial Services Chief Executive Officer Chief Financial Officer
high levels of customer loyalty. With 15 million members, The
Andrew Goodsell Stuart Howard
Employees
AA is the UK’s market leader in roadside assistance, attending
12,000
over 3.5 million breakdowns every year. The AA is also one
Charles Sherwood
Philip Muelder of the UK’s biggest names in insurance. Saga provides
Date of Initial Investment financial services to people aged over 50 in the UK, including
September Company Information
motor and home insurance as well as personal financial
20041 Source
Corporate/Merger
Sales 2008/9
£1,605m products. Saga also offers a broad range of holidays and
Total size of transaction Financial Year End other travel services to its customers, including the famous
€9,685m 31 January
Saga world cruises.
In September 2004, a company backed Acromas is well ahead of schedule in
by the Permira funds and another financial terms of delivering the planned benefits
sponsor acquired The AA from a large, of shared experience, expertise, systems
publicly-listed utility. A new management and economies of scale resulting from the
team successfully implemented a plan to combination of the two businesses. Synergy
improve the operational efficiency of the implementation is currently two years ahead
business, to rejuvenate the brand and to of plan and target synergies are now almost
improve customer service. The result was double the estimate at the time of the merger.
a reversal in the long-running decline in
Membership at The AA continues to grow,
breakdown cover membership and
supported by repeated recognition such as
accelerated growth in insurance sales.
‘best buy’ from ‘Which?’ magazine. Saga’s
•Acromas is the holding •The merger between •Both The AA and Saga In September 2007, The AA completed a performance also continues to improve,
company for The AA The AA and Saga has are continuing to grow merger with Saga to form Acromas, which notably, sales of Saga Magazine remain
and Saga, two of the delivered benefits of and are held in high collectively provides a wide range of valued strong in a market where other magazines
UK’s most iconic shared experience, regard by 18 million services to over 18 million customers in are suffering from falling circulation.
brands expertise, systems and customers the UK. Acromas’ outstanding management
team, led by chief executive Andrew
economies of scale
Goodsell (who led Saga prior to the merger)
has successfully integrated both businesses.
1
Initial investment in The AA. The date of the merger to form Acromas was September 2007

44 All3Media Our portfolio 45
Investment
All3Media Overview
www.all3media.com
All3Media is the largest independent TV production business
Sector Senior Management in the UK, comprising a group of 15 production companies.
TMT (Media) Chairman Chief Executive Officer
The group also includes a digital media producer, a next
Sir Robert Phillis Steve Morrison
Employees Chief Operating Officer Chief Financial Officer

generation advertising agency, an international distribution
1,754 Jules Burns John Pfeil company and a talent management business.
Creative Director
David Liddiment All3Media is based in the UK and has an Despite pressure on broadcasters from
Date of Investment
expanding international presence with the advertising markets as a result of the
September Permira Representatives significant production activities in the global economic downturn, expansion of
2006 Robin Bell-Jones
Netherlands, Germany and New Zealand, multi-channel TV and other emerging media
Wouter Snoeijers as well as growing TV production companies distribution is expected to continue to drive
in the US (in New York and Los Angeles) growth in demand for TV content. Although
Company Information and Australia. the environment is more challenging,
Source Sales 2008 All3Media is well-positioned, given its
The group’s key programmes include:
Financial Vendor £370m geographic spread, genre diversity, the
Hollyoaks; Wild at Heart; Midsomer Murders;
quality of its portfolio and its secondary
Total size of transaction Financial Year End Shameless; Peep Show; Skins; How To Look
rights ownership.
€531m 31 August Good Naked; Shortland Street; the Emmy
Award-winning drama Elizabeth; Are You Over the past 18 months All3Media has
Smarter Than A Fifth Grader?; and the implemented a group-wide Environmental
Oscar-nominated Whale Rider. All3Media Project which is intended to focus all
has a strong heritage and production base in employees on managing the group’s
the UK, allowing it to sell its English language environmental impact and minimising waste.
and international format content worldwide. The company has already demonstrated
a marked improvement in energy efficiency
All3Media is led by a highly experienced
and waste management across the business.
management team whose growth plan is
•Independent TV •Organic growth plan •Focus on expanding based on developing new programming
production group with based on expanding presence in new and international formats, driving a shift in
a presence in the UK, into new formats and media activity contribution from drama to entertainment
the Netherlands, genres, supported by formats. All3Media is also expanding
Germany, New strategic acquisitions in complementary areas, such as new media
Zealand, the US and advertiser funded content, both through
organic growth and acquisitions. The
and Australia
company has a good track record of growth
via acquisition, which remains a strong focus.

46 Arysta LifeScience Our portfolio 47
Investment
Arysta LifeScience Overview
www.arystalifescience.com
Arysta LifeScience (Arysta) is an agrochemicals and
Sector Senior Management pharmaceuticals company that produces a range of
Chemicals Chairman Chief Executive Officer
insecticides, fungicides and herbicides as well as a number of
David Jones Christopher Richards
Employees Chief Financial Officer General Counsel

products for the healthcare and veterinary medicine markets.
2,450 Rudolf van Houten Robert Lence Created through the consolidation of the life-science divisions
of Tomen Corporation and Nichimen Corporation, Arysta is
Date of Investment
John Coyle Paul Mullins the world’s largest, privately-held agrochemical business,
February Alex Emery Ulrich Siemssen
marketing a portfolio of more than 150 crop protection
2008 products in over 125 countries.
Company Information
Source Sales 2008
Financial Vendor ¥134bn Arysta operates through two units – Arysta is achieving significant operational
‘Agriscience’ and ‘Lifescience’. The improvement by putting in place world class
Total size of transaction Financial Year End
‘Agriscience’ unit produces a range of over supply chain management. This process is
€1,948m 31 December
60 products, which include market-leading being driven forward by a newly established
insecticides, fungicides and herbicides such programme management office (PMO).
as SELECT®, EVEREST® and DINAMIC®. The management team has been
Arysta’s ‘Lifescience’ unit produces more strengthened through the appointments
than 100 different products including: of a new Chairman, heads of Supply Chain,
pharmaceutical additives and health food Europe and PMO initiatives. Demand has
products; veterinary medicines; and animal been strong in 2008. The rapid appreciation
feed additives. of the Japanese Yen in late 2008 has
adversely affected reported earnings.
Arysta was acquired by Industrial Equity
Investments Limited, an international The company is actively pursuing add-on
investment company owned by the Permira opportunities and industry consolidation
•Agrochemicals and •Value creation •Strong demand
funds, in March 2008. Permira has since via larger acquisitions/mergers, as well as
pharmaceuticals plan includes in 2008 supported Arysta’s management in their seeking out cross-region product sales
company with a improvements goal of creating an integrated multi-national opportunities. The company also plans
portfolio of 150 to supply-chain organisation from a loosely-integrated to enter new geographies with its strong
products focused management and group formed from 14 product and existing product portfolio.
on crop protection growth through company acquisitions since 2001.
As a distributor of agrochemicals, Arysta’s
acquisition Arysta is a truly global business; it is products are registered with all relevant
diversified with exposure to all agrochemical regional, national and international
markets with balanced distribution over regulatory bodies. The company is also
North America, South America, focused on developing environmentally
Europe/Africa/Middle East and Asia. friendly products, such as natural enemies,
The company is also diversified by microbes and pollination bees, and is a
crop types. key supporter of agricultural and rural
community groups such as Future Farmers
of America.

48 Birds Eye iglo Group Our portfolio 49
Investment
Birds Eye iglo Group Overview
www.birdseye.co.uk
Birds Eye iglo Group (BEIG) is a European frozen food
Sector Senior Management company that produces fish, vegetables, poultry and ready
Consumer Chairman Chief Executive Officer meals, as well as a number of iconic products including Fish
(Products) Erhard Schoewel Martin Glenn
Fingers and Schlemmer Filets. Around half of the company’s
Chief Financial Officer
Employees
Paul Woolf business is in the UK, where it operates under the Birds Eye
2,487 Permira Representatives
brand, while the remainder lies in continental Europe,
Cheryl Potter particularly Germany and Austria, where products are sold
Date of Investment Max Biagosch
under the iglo name.
November
2006 Company Information
BEIG was acquired by a company backed products as ‘Good Mood Food’ – healthy,
Source Sales 2008 by the Permira funds from Unilever in nutritious, great tasting and great value.
Corporate €1,284m
November 2006. A new management team,
Since the Permira funds’ investment,
Total size of transaction Financial Year End led by Martin Glenn, has implemented a
management have begun to drive sales
€1,891m 31 December wide-reaching value creation strategy aimed
growth. This has been most notable in the
at restructuring the cost base and restoring
UK, where sales of the Birds Eye brand
growth in core product categories.
grew by 6.0% (in Sterling terms) in 2008.
There has been a strong focus on both
2009 will present a more challenging
renovation and innovation by rejuvenating
operating environment although the
established products with the launch of the
frozen food category has some defensive
Omega-3 fish finger being an early example
characteristics. BEIG’s focus on providing
of the success of this strategy.
good value nutritious food to cost-conscious
BEIG has also taken steps to put its cost consumers should stand the group in good
base on to a sustainable footing. One stead as the economic climate continues
•European frozen •Value creation strategy •Focus on providing manufacturing site in the UK has been to weaken.
closed, with production transferred to
food company that aimed at restructuring good value nutritious Lowestoft (UK) and Bremerhaven (Germany).
BEIG has a long-standing commitment to
produces fish, the cost base and food to cost-conscious sustainability, it was the first company to stop
The business has also completed its
vegetables, poultry restoring growth in consumers should sourcing cod from the North Sea in 1999,
separation from Unilever and rolled out
that has continued under Permira funds’
and ready meals core product stand the company a new IT system.
ownership. The company’s commitment to
categories in good stead BEIG is benefiting from a number of positive sustainability is supported by two missions:
consumer trends. Growing concern about the Eco-Mission and the Nutrition-Mission.
health and nutrition has created greater These missions set out nine priority areas
demand for fish and vegetables. More where BEIG aims to have the greatest positive
recently, consumers’ attitudes to frozen impact on society and the environment.
food have shifted favourably, as they begin One example of BEIG’s commitment to
to appreciate more than ever the strong value sustainability is the launch of its sustainable
proposition, reduced waste and convenience fish-based products, which have resulted in
offered by frozen food. A new marketing a 3,000 tonne reduction in the yearly cod
campaign has sought to take advantage catch. More details are available from the
of these trends by positioning Birds Eye Sustainability Report on the BEIG website.

50 BorsodChem Our portfolio 51
Investment
BorsodChem Overview
www.borsodchem.hu
BorsodChem is a European producer of isocyanate-based
Sector Senior Management chemicals and PVC, headquartered in Kazincbarcika,
Chemicals Chairman Chief Executive Officer
Hungary. BorsodChem’s core products are toluene
Kay Gugler Wolfgang Büchele
Employees Chief Financial Officer Head Business Unit Isocyanates

diisocyanate (TDI) and methylene diphenyl diisocyanate
3,600 Viktor Katona Rik de Vos (MDI), which are used in the production of rigid and flexible
polyurethane foams.
Date of Investment
Christian Neuss Torsten Vogt
The properties of polyurethanes, such As a major chemicals manufacturer,
December Olaf Koch Christian Baier
as its light weight, insulation, durability, Borsodchem is fully compliant with all
2006 flexibility (even at low temperatures), relevant ISO standards, as well as the
Company Information
abrasion resistance and shock absorbance, REACH requirements. The company is
Source Sales 2008
Public Company €1,007m make it suitable for use in a broad variety constantly reviewing and improving its
of applications including furniture, bedding, production processes in order to reduce
Total size of transaction Financial Year End construction, automotive interiors, coatings energy consumption and CO2 emissions.
and adhesives. BorsodChem also has a strong focus on
employee safety that has resulted in accident
BorsodChem’s products are sold mainly
statistics that have been lower than the
in Western and Central-Eastern European
industry average for several years.
markets, which account in total for 92% of
its sales. The size of the global MDI and TDI BorsodChem is working hard on a number
markets is approximately four million tons of measures in response to the difficult
and two million tons a year respectively. operating environment in 2009. A significant
cost savings programme has been initiated
The nature of the isocyanate industry results
with the aim of generating efficiencies in
in technology-driven barriers to entry. As
direct and indirect costs and preserve
one of the major producers in this market,
liquidity. The company is also carrying out
•European producer •Difficult operating •Timeline for expansion BorsodChem has best-in-class technology
a portfolio rationalisation through selective
of isocyanate-based environment expected of production capacity capabilities underpinned by a proprietary
disposals of non-core activities and
TDI production process with the most
chemicals with main in 2009 and in is under review in outsourcing of logistics and maintenance
favourable cost position in Europe.
markets in Western response, cost light of a significant operations. The company is currently
and Central-Eastern reductions and slow down in demand reviewing its production capacity in light of a
Europe disposals of non-core very significant reduction in global demand
for isocyanates in the fourth quarter of 2008.
assets are being
implemented

52 Cognis Our portfolio 53
Investment
Cognis Overview
www.cognis.com
Cognis is a worldwide supplier of specialty chemicals based
Sector Senior Management on natural raw material-based chemistry. The majority of
Chemicals Chief Executive Officer Chief Financial Officer
Cognis’ products are manufactured from sustainable sources
Antonio Trius Klaus Edelmann
Employees Chief Administration Officer Executive Vice President,

such as coconut and palm kernel oil. Cognis was formed as
6,000 Helmut Heymann Care Chemicals a ‘carve-out’ from German chemicals group Henkel in 1999
Richard Ridinger
Executive Vice President, before being acquired by a company backed by the Permira
Date of Investment
Functional Products
Paul Allen
Executive Vice President,
Nutrition and Health funds and other financial sponsors in 2001.
November Stéphane Baseden
2001 Cognis operates three strategic able to focus more effectively on addressing
Permira Representatives business units: the needs of its customer base by focusing
Torsten Vogt Sebastian Hoffmann on ‘wellness’ and ‘sustainability’ and
• Care Chemicals produces ingredients
Ulrike Möhler-Neis investing in research and development. The
for cosmetics, toiletries, detergents and
company was restructured, with business
household cleaners for the personal
Company Information units focused on end markets rather than
and home-care markets, as well as for
Source Sales 2008 geographic area, and with full responsibility
Corporate €3,001m industrial and institutional cleaning.
for performance throughout the value chain.
These products are, in many cases,
This resulted in significant cost savings.
Total size of transaction Financial Year End designed to appeal to customers with
concerns about environmental issues Cognis’ product portfolio was targeted
towards fast-growing specialty markets,
• Nutrition and Health offers natural-source
while the more cyclical and commoditised
ingredients-based products, formulations
parts of the business, such as the ‘Process
and concepts for food, beverages,
Chemicals’ and ‘Oleochemicals’ business
functional food and dietary supplements.
units, were sold. Cognis has also
Cognis is also one of the world’s leading
successfully expanded into emerging
manufacturers of natural-source Vitamin
•Supplier of specialty •Established an •Focus on innovative markets in Asia and South America.
E and pharma-compliant excipients
chemicals with a focus independent and core, disposing Sustainability lies at the heart of Cognis’
• Functional Chemicals serves numerous
on wellness and market-driven of more cyclical industrial markets such as agrochemicals,
operations. It was the first specialty
sustainability organisation after the businesses like chemicals manufacturer to obtain worldwide
synthetic lubricants and mining, with
carve-out from Henkel Oleochemicals matrix registration to ISO 9001 and ISO
solutions based on its surface technology
14001. The company has introduced an
and Pulcra expertise, ecological compatibility,
action plan with the objective of reducing
application reliability and user safety
energy consumption, CO2 emissions and
The first challenge for Cognis was to waste water by 25% by 2012. Further details
establish itself as a stand-alone company are available from the Sustainability Report
with independent functions and structures. on the Cognis website.
Once this had been achieved, Cognis was

54 Cortefiel Our portfolio 55
Investment
Cortefiel Overview
www.grupocortefiel.com
The Cortefiel Group (CTF) is a Spanish clothing retailer,
Sector Senior Management operating a multi-format network with three main fascias:
Consumer (Retail) Chairman Chief Executive Officer
Cortefiel, Springfield and women’secret. The remaining
Jacobo González-Robatto Anselm Van Den Auwelant
Employees Chief Financial Officer

portfolio consists of other smaller formats including Pedro
7,820 Marcos Gómez del Hierro and Fifty Factory. Spanish operations account for
75% of sales and in total CTF operates 1,578 points of sale,
Date of Investment
Carlos Mallo Pedro López employing around 7,820 people.
September Andrés Echecopar
2005 In 2005, a company financed by the Permira The Spanish clothing market is still relatively
Company Information funds, and two other financial investors fragmented and had shown solid growth
Source Sales 2008 agreed to acquire CTF which was delisted over recent years. Specialist retailers
Public Company €1,136m from the Madrid Stock Exchange in outperformed the market as they continued
March 2006. to benefit from a decreasing share held by
€1,802m 28 February traditional independent retailers. Since the
The Cortefiel brand enjoys strong market
beginning of 2008, the sector has been
recognition in Spain and offers a range of
severely affected by the downturn in the
classic clothing for men and women over 30.
residential property market, impacting
Cortefiel has 290 own stores (primarily in the
consumer confidence and private
Iberian market) and 34 franchises which
consumption, as customers trade down
combined account for 36% of group sales.
in search of value. However, CTF has
Springfield targets the 18-30s with a casual,
maintained a strong market position in
contemporary look at value prices. It has
Spain due to the strength of its key brands –
416 own stores together with 199 franchises
Cortefiel, Springfield and women’secret – all
and constitutes 40% of group sales.
of which operate through a widespread and
women’secret is the leading lingerie
well-located store network in prime areas.
•Pan-European •Prime locations, •Focus on margin retailer in Spain with its 271 stores and
fashion retailer with strong brand protection, cost 187 franchises, which together contribute CTF is focused on gaining further market
18% to group sales. share from traditional retailers and
established positions positioning and control and continuing its international expansion of
in Iberian markets product portfolio, and improvements in CTF has a strong commitment to social
Springfield and women’secret. Further
focused promotional stock management responsibility which is supported
improvements in stock management are also
by the group’s Corporate Social
activity have led to Responsibility Committee. It is a member
being made and will be accelerated by the
improved relative group’s new Aranjuez warehouse. The group
of the United Nations Global Compact
market share in the is also working on developing its Springfield
(www.unglobalcompact.org), an initiative for
women’s collections and improving Cortefiel
context of severe businesses that are committed to accepted
women’s product lines. Finally, in light of the
Spanish recession principles in the areas of human rights,
current challenging market conditions, a
labour, environment and anti-corruption.
range of initiatives have been taken to protect
The group also operates a code of conduct
cash, primarily through rationalising costs.
which sets out minimum standards of
conduct for CTF employees and suppliers.
Further details are available from the group’s
Social Responsibility Report, available from
the Cortefiel website.

56 DinoSol Supermercados Our portfolio 57
Investment
DinoSol Supermercados Overview
www.dinosol.es
DinoSol Supermercados (DinoSol) is a leading Spanish food
Sector Senior Management retailer, operating two brands: HiperDino and SuperSol. The
company currently has around 460 stores with a total selling
Carlos Criado-Pérez Luis Gil
Employees Chief Financial Officer

space of approximately 400,000 square metres. While the
10,845 Luis Sanz supermarket format represents over 60% of total group sales,
the company also operates convenience stores under the
Date of Investment
Paolo Colonna Carlos Mallo Netto brand and cash and carry and hypermarket formats in
November Gianluca Andena Francesco de Mojana
the Canary Islands.
2004
Company Information
DinoSol enjoys a strong market position in In response to the increasingly difficult
Source Sales 2008 the south of Spain: it is a market leader in trading environment, the company has
Corporate €1,678m
the Canary Islands and in Andalucía, with implemented a number of initiatives
Total size of transaction Financial Year End a particular strength in the Costa del Sol. designed to increase cashflow generation
€895m 31 December About 75% of the company’s sales are and keep costs under control. DinoSol also
concentrated in regions where DinoSol continues to rationalise its portfolio of stores
has a strong market share. by focusing on key formats and regions.
It has strengthened further its presence in
The Spanish food retail market is one of the
the Canary Islands and Andalucía, where it
most fragmented in the European Union.
already enjoys strong market positions, and
It has grown rapidly in recent years with
has expanded in the supermarkets segment.
larger operators, especially supermarkets,
Stores in non-core regions and formats
capturing most of the growth. However, the
have been sold. As a result, DinoSol holds
economic downturn has had a marked
strategic market shares in key regions and
effect; consumers have traded down, looking
is well-positioned to participate in the
for better value. As a result, private label
•Operates the DinoSol •Value creation plan •In preparation for the ongoing consolidation of the Spanish food
penetration has increased from 27% to 30%
retail market.
and HiperDino based on turnaround downturn, DinoSol has for the sector overall and hard discounters
supermarket brands by restructuring worked to cut costs, are continuing to gain market share.
in southern Spain, the prices, increasing its increase cash Since the Permira funds’ original investment
Canary Islands and private label and generation and divest in December 2004, the group has
Andalucía, as well as streamlining logistics non-core assets implemented a turnaround. Prices have been
the Netto value brand restructured and private label penetration
increased, while store operations have been
streamlined and logistics improved: 12
original logistic platforms were consolidated
into two new state-of-the-art platforms
conveniently located in the Canary Islands.

58 Freescale Semiconductor Our portfolio 59
Investment
Freescale Semiconductor Overview
www.freescale.com Freescale is a global leader in the design and manufacture of

embedded semiconductors for the automotive, consumer,
Sector Senior Management
industrial, networking and wireless markets. The company has
TMT (Technology) Chairman and Chief Executive Officer Chief Financial Officer
a broad portfolio of more than 14,000 products serving over
Rich Beyer Alan Campbell
Employees Chief Sales and Marketing Officer

10,000 customers, including many of the world’s top original
24,000 Henri Richard equipment manufacturers. Freescale has over 50 sales offices
located in 25 countries.
Date of Investment
Peter Smitham Nic Volpi
November Tom Lister Throughout 2008, the management and In October 2008, Freescale announced a
2006 staff of Freescale have worked hard restructuring plan with the aim of aligning
Company Information to strengthen the business. A new chairman its manufacturing capacity and operating
Source Sales 2008
and chief executive, Rich Beyer, was expenses with the business environment
Public Company US$5,226m appointed in March 2008 with a brief to and future growth areas. Freescale has
solidify Freescale’s position as a market also announced the exploration of strategic
leader in its core segments and to achieve alternatives for the Cellular Products Group,
best-in-class operational and financial which will enable the company to focus
metrics. Beyer has had a long career in the its resources on higher growth and higher
semiconductor industry, having served profitability markets where it is better
as CEO at a number of market leading positioned to capture market share.
semiconductor companies.
Although the challenging economic
Throughout the last year Freescale’s environment put increased pressure on
new management team have sought to earnings, 2008 was still a record year
target growth by focusing on three key for design wins for Freescale, with a 10%
business units: increase over 2007. Freescale has also
strengthened its relationships with
• Microcontrollers Group (which supplies
customers, seeing a substantial
•Designs and •New product launches •Cost reduction embedded microcontrollers targeting the
improvement in customer loyalty metrics
manufactures continued throughout plan implemented automotive and industrial multi-markets)
in 2008. Furthermore, in the first quarter of
semiconductors; 2008, 10% increase in in response to a • Networking and multimedia group (which 2009, Freescale completed a debt exchange,
broad portfolio design wins compared toughening economic provides high performance processors which reduced net debt by US$2 billion and
of more than to 2007 environment primarily for networking infrastructure) annual interest by US$150 million.
14,000 products • RF, Analog and Sensors Group (which Freescale has a well-established programme
provides integrated devices in a variety of waste reduction and environmental
of automotive, consumer and industrial responsibility. Since 2001 Freescale has
applications) reduced non-hazardous waste generation
by 34%, hazardous waste by 30% and
Within these segments, the company
greenhouse gas output by 36%. The
continues to innovate and target growth.
company’s overall recycling rate has risen to
The trading outlook in 2009 is challenging 75%. Freescale now recycles whole silicon
given the uncertain economic environment wafers for re-use in solar energy applications.
and the prospect of a prolonged recession. Wherever possible, Freescale is working with
Demand volumes in most segments declined subcontractors to control waste and ensure
substantially in the second half of 2008. it is properly handled and processed.

60 Gala Coral Group Our portfolio 61
Investment
Gala Coral Group Overview
www.galacoral.co.uk
Gala Coral Group is the pre-eminent integrated betting and
Sector Senior Management gaming group in Europe. It is the only gaming company in
Consumer Chairman Chief Executive Officer
the UK with a significant presence in the bookmaking, bingo
(Leisure) Neil Goulden Dominic Harrison
and casino markets, both on the high street and online.
Employees
Gary Hughes The group also operates a betting business in Italy.
20,000 Permira Representatives In September 2005, the Permira funds Gala Coral Group was adversely affected
Martin Clarke Leanne Buckham acquired a stake in the Gala Group to by smoking bans across England, Wales
Date of Investment Charles Sherwood become a joint and equal owner alongside and Scotland in its bingo clubs and casinos.
September two other financial sponsors. In October In April 2008 the group renegotiated
2005 Company Information 2005, the Gala Group acquired Coral Eurobet its banking facilities to create financial
Source Sales 2008 and the enlarged business was renamed the headroom for the business to meet
Financial Vendor £1,269m
Gala Coral Group. The group’s activity ongoing needs.
Total size of transaction Financial Year End is organised into three trading divisions:
There were positive developments in certain
€6,663m 30 September
• Gala Gaming – this division incorporates parts of the business. During the year to
both bingo and casino operations. The September 2008, Coral grew EBITDA
group operates 156 bingo clubs and is the benefiting from longer opening hours, new
UK’s market leader with a 41% share. Gala machine content and 46 new betting shops.
Coral operates 26 casinos in the UK and Gala Bingo sought to respond to the
one casino in Gibraltar; in total the group’ssmoking bans by cutting running costs
casinos have 1.3 million members and introducing a new stake retention
jackpot game, Gala High 5. The E-Commerce
• Retail Betting – the group’s Coral brand is
division saw profit growth with Galabingo.com
one of the leading retail betting names in
maintaining its market-leading position in the
the UK. Gala Coral has recently entered the
online bingo market.
Italian betting market, with the acquisition
•Pre-eminent •Some positive •Banking facilities of 350 betting shops in Italy. The retail Gala Coral strives to be an ethical and
integrated betting developments renegotiated betting division runs almost 1,600 betting socially-aware business. The group actively
and gaming group despite challenging in response to the shops in the UK and employs over 10,000 supports GamCare, the UK’s leading
in Europe environment: profit adverse effects people. The division is also responsible for authority on support, advice and counselling
growth at Coral and of smoking ban the operation of two greyhound stadia in for people affected by gambling problems.
E-Commerce division the UK at Hove and Romford Gamcare has accredited all of Gala Coral’s
gaming and betting channels, making it the
• Remote Gaming – this division is
first operator to achieve this accolade. The
responsible for the development,
group is also committed to investing in its
management and operation of the group’s
workforce and has won a National Training
E-Commerce activities in the UK and
Award for Gala Casino’s BTEC qualification
Europe: Coral.co.uk, Eurobet.com,
in Casino Management, which is a unique
Galabingo.com and Galacasino.co.uk.
collaboration with Blackpool and the
The division also operates Coral Telebet,
Fylde College.
Gala Coral’s telephone betting business
and is the UK’s first operator of digital
interactive televised bingo

62 Galaxy Entertainment Group Our portfolio 63
Investment
Galaxy Entertainment Group Overview
www.galaxyentertainment.com
Galaxy Entertainment Group (Galaxy) is a casino and hotel
Sector Senior Management operator in Macau SAR, China. It is one of six gaming
Consumer Chairman Deputy Chairman
concessionaires licensed to operate casinos in Macau, the
(Leisure) Dr Lui Che Woo Francis Lui
world’s largest gaming market by revenue and the only legal
Employees
gaming location in China. The company is listed on the Hong
Guido Paolo Gamucci James Burrell
9,800 Martin Clarke Kong Stock Exchange and is majority owned by the Lui family.
Date of Investment
Company Information In November 2007, companies backed by A detailed value creation plan is in place at
the Permira funds acquired c.20% stake in Galaxy that focuses on:
November Source
Family Owner/Public Company
Sales 2008
(not available) Galaxy. Two directors representing the
2007 Investment Permira funds have been appointed to
• Ensuring StarWorld maintains market
Financial Year End share and profitable volume in an
Total size of initial transaction 31 December the board of Galaxy and have certain
increasingly competitive environment.
€593m detailed information rights. In addition, the
This includes the implementation of a
Permira funds benefit from anti-dilution
cost saving plan in 2009
rights and certain veto rights including any
fundamental changes to the strategy of • Completing the construction of Galaxy
the business. Macau Resort within budget and in a timely
manner to open when market demand
Galaxy’s flagship property is StarWorld,
supports the product offering (anticipated
which opened in November 2006. Galaxy
2010/11)
also has one of the largest land banks in
Cotai (the ‘new’ casino and entertainment • Creating value-enhancing opportunities
destination in Macau) upon which it is on the remaining Cotai land bank,
planning the development of a new through strategic partnerships with
gaming, hotel and entertainment resort – world-renowned hotel, leisure, retail
Galaxy Macau Resort – which will include and entertainment brands
•Casino and hotel •Operates flagship •Value creation plan will 2,200 hotel rooms and one of the world’s
operator in Macau StarWorld hotel and focus on completing • Expanding the Galaxy brand into other
largest casinos. The group also has
SAR, China casino and holds one construction Asian leisure markets focusing on gaming,
management contracts to operate four
hotels and entertainment facilities
of the largest land programme on Cotai ‘City Club’ casinos in Macau and owns a
banks on Cotai – and increasing Construction Materials business, which • Maximising value from the non-core
Macau’s new casino profitability at is a legacy business activity prior to the Construction Materials business
group obtaining the gaming business.
and entertainment existing sites During 2008 certain restrictions on visas
destination for Chinese visitors to Macau negatively
impacted Macau gaming spend growth. This
combined with global economic slowdown
has created a softening in the Macau market.

64 Marazzi Group Our portfolio 65
Investment
Marazzi Group Overview
www.marazzi.it
Founded in the 1930s, Marazzi has been Even in this scenario, Marazzi, due to its
growing its international footprint since leadership position and strong geographic
Sector Senior Management the 1980s. Marazzi’s offering covers all diversification, remains well-positioned to
IPS Chairman CEO Operations segments, residential and commercial, consolidate its leadership and has managed
Filippo Marazzi Mauro Vandini
and includes products ranging from floor to outperform its competitors and increase
Employees CEO Finance and Business and wall tiles to solutions for exterior wall its market share in all its key geographies.
6,700 Development coverings as well as sanitaries. Marazzi was
Maurizio Piglione In response to the difficult market
a former Permira funds portfolio company
environment, the group is implementing a
between December 2004 and February
Date of Investment Permira Representatives number of initiatives to increase cashflow
2006, when it was floated on the Milan Stock
July Paolo Colonna Francesco Pascalizi Exchange. During the first period of Permira
generation, control costs and rationalise
the manufacturing footprint. In parallel, the
2008 Silvia Oteri
funds’ ownership (in partnership with the
following initiatives are under way to improve
Marazzi family and another financial sponsor)
Company Information Marazzi’s position and lay foundations for its
Marazzi accelerated investment in new
Source Sales 2008 further growth:
markets and in 2005, the company acquired
Public Company €977m
Welor, a leading Russian tiles manufacturer. • Strengthening the management team
Total size of transaction Financial Year End As a result of this 2005 transaction, Russia through the addition of a Country Manager
€1,387m 31 December now represents the second largest contribution in Italy and a CEO responsible for Finance
to the group’s consolidated EBITDA. and Business Development
Throughout its period of public ownership, • Investing in marketing with the objective
Permira continued to monitor Marazzi, of shifting the focus to higher margin
maintaining a strong relationship with the products
management team and the company’s
•Designs, manufactures Marazzi Group (Marazzi) is the founding family. Permira took the view that
• Improve efficiency of the distribution
and distributes ceramic network by focusing on key customers and
worldwide leader in the design, there were still opportunities to build value at
modeling the sales approach, service level
tiles with operations in manufacturing and distribution of Marazzi, so in July 2008 a company backed
and marketing strategy on customer needs
over 130 countries by the Permira funds and another financial
ceramic tiles. The company is a sponsor acquired the company, alongside
and profile
•Strong market position technological leader in the tiles sector the founding Marazzi family. • Identification of potential acquisition
targets to increase the level of vertical
allowed an increase in and has a good track record in design Since the acquisition, the market
integration (e.g. distribution) or to allow
market share in all key environment has changed significantly:
and innovation. The group sells into the slowdown of all major Western
diversification into other attractive
geographies 130 countries, enjoying leadership in market segments
economies is having a deeper impact than
•Plans to support most of the markets in which it expected on the building material segment.
growth through operates and has manufacturing

cash generation, facilities in all of its key areas of
potential acquisitions, activity (Europe, the US and Russia)
strengthening of as well as direct distribution in Russia
management team and
a shift in focus towards and the US.
high end products

66 Maxeda Our portfolio 67
Investment
Maxeda Overview
www.maxeda.com
Maxeda is the largest non-food retailer in the Netherlands.
Sector Senior Management It has strong positions in both the DIY and fashion markets.
Consumer (Retail) Executive Chairman Chief Financial Officer
In total, the group owns 11 different brand formats and
Tony DeNunzio Ronald van der Mark
Employees Chief Executive Officer DIY

operates 1,400 stores in seven European countries.
18,000 Nick Wilkinson
Maxeda’s DIY business operates a designed to support sales growth by enticing
multi-brand and multi-format retail portfolio, the demanding, contemporary shopper.
Date of Investment which is a market leader in the Benelux
Cheryl Potter Maxeda’s DIY business has continued to
September Max Biagosch region. Formats include Praxis, Formido,
expand its formats (new formats include
2004 Brico and Plan-It. 50% of Maxeda’s stores
‘Plan-It’ mega DIY stores and ‘Brico-City’
Company Information are located outside the Netherlands.
inner-city mini DIY stores) while V&D has
Maxeda’s fashion business includes leading
Source Sales 2008/9 implemented a turnaround plan by investing
Public Company €2,980m department store formats, such as Bijenkorf,
in its store network and repositioning its
a luxury department store chain in the
Total size of transaction Financial Year End brand and product portfolio. The M&S Mode
Netherlands, and V&D, a department store
€2,517m 31 January and Hunkemöller brands have similarly
aimed at the mid-market, as well as a number
expanded into new geographies.
of other retail brands, including womenswear
brands M&S Mode and Claudia Sträter and Although consumer demand has weakened
the lingerie brand Hunkemöller. across Europe, the group’s transformation
leaves it in a good position to gain further
Since its acquisition by the Permira funds
market share from weakened competitors.
and a number of other financial investors
While there is a clear focus on managing
in 2004, the company has transformed into
costs today, customer satisfaction remains
a successful pan-European retail leader.
paramount and the group remains
The company’s ‘5S strategy’ is focused on:
committed to investing in growth.
increasing staff and customer satisfaction;
•Largest non-food •Value creation driven •Outdated stores have increasing sales in existing stores and Maxeda has an ethical approach to its
through the expansion of the store network; business. The group’s formats work closely
retailer in the by a focus on been remodelled as implementing more efficient sourcing with the Business Social Compliance
Netherlands owning operational part of improving the practices both at home and abroad; Initiative (BSCI - www.bsci-eu.com) to
11 different brand improvement and customer experience saving costs and improving cashflows; and improve working conditions at suppliers.
formats and operating cash control and significant generating synergies through improved Maxeda has sought to work only with
1,400 stores investment has been cross-group co-operation. suppliers that have adopted the BSCI
made in new stores principles. Maxeda also works to reduce its
Significant progress has been achieved
environmental impact and has implemented
to date, initially through an operational
a comprehensive energy-saving initiative
improvement programme, which placed a
across the group. Maxeda’s DIY stores are
strong focus on costs and cash control, but
offering an increasing portfolio of products
more recently as a result of the investments
sourced from sustainable forests, while the
the group has made in its store portfolio.
group’s food courts and cafés are placing
As part of the company’s value creation plan,
a greater emphasis on sourcing local
many of its stores have been re-modelled
products, thereby reducing their total
with out of date store interiors being replaced
carbon footprint.
by more attractive retail environments

68 NDS Our portfolio 69
Investment
NDS Overview
www.nds.com
NDS Group (NDS) creates technologies and applications that
Sector Senior Management enable pay-TV operators to deliver digital content securely
TMT (Technology) Chief Executive Officer Chief Financial Officer
to TV set-top boxes, digital video recorders (DVRs), personal
Abe Peled Alex Gersh
Employees Chief Operating Officer

computers, mobile phones and other multimedia devices.
4,000 Raffi Kesten Over 70 of the world’s leading pay-TV platforms rely on NDS
solutions to protect and enhance their businesses.
Date of Investment
Carl Parker Richard Sanders
NDS offers solutions for satellite, cable, multiple platforms (cable, satellite, mobile TV,
February Benoit Vauchy Alexandre Margoline
internet protocol television (IPTV), terrestrial, internet, etc.) by enabling operators to
2009 and mobile networks as well as hybrid centrally control content delivery to a number
Company Information
systems which combine broadcast and of platforms over multiple networks.
Source Sales 2008
internet technology. NDS has strong
Public Company US$850m Headquartered in the UK, NDS has offices
relationships with key customers including
around the world. The company has a strong
Total size of transaction Financial Year End DIRECTV, BSkyB, Sky Italia, Viasat,
€2,461m 30 June commitment to research and development
Premiere, CANAL+, Astro, Tata Sky, FOXTEL,
and more than 75% of NDS’ workforce is
Cox Communications and Cablevision.
dedicated to creating the next generation of
VideoGuard® is NDS’ world market-leading pay-TV technology. The company also has
conditional access and digital rights two major subsidiaries: Orbis, which supplies
management technology. It is deployed on its OpenBet™ solution to online gaming
more than 99 million active devices – operators; and Jungo, whose products
safeguarding pay-TV service revenues support advanced networking in today’s
exceeding US$40 billion. NDS middleware, digital home.
including MediaHighway®, has been
In June 2008, the Permira funds agreed
deployed in 108 million TV set-top boxes,
to acquire NDS in a public-to-private
enabling a host of advanced services for
•Creates technologies •Strong portfolio of •Strong relationships subscribers. NDS DVR technology, including
transaction. The acquisition of NDS was
and applications to leading technology, with key customers carried out in partnership with News
XTV™, is installed in 17 million units, making
Corporation, which maintains a significant
enable the secure including VideoGuard®; it the global leader in DVR solutions.
interest in the business. The transaction was
delivery of digital 75% of workforce The company recently launched NDS completed in February 2009.
content dedicated to R&D Dynamic™, an advanced advertising
Permira intends to support the company’s
solutions suite that enables operators to
management team as it continues to grow
tailor advertising to the interests of viewers.
the business by strengthening existing client
The NDS Dynamic platform includes
relationships while targeting new applications
technology to carry out detailed audience
and services, and seeking out further
measurement and present rich, interactive
opportunities in emerging markets and in the
content. The company also produces the
cable, IPTV and other market segments.
award-winning NDS Unified Headend™
product, which supports the convergence of

70 New Look Our portfolio 71
Investment
New Look Overview
www.newlook.co.uk
New Look has a broad retail network The trading outlook for the UK and European
comprised of 607 stores in the UK and retail sectors is challenging, with clear
Sector Senior Management Ireland, 23 stores in France and Belgium pressure on consumers’ disposable
Consumer (Retail) Executive Chairman Chief Executive Officer and 19 franchise stores in the Middle East income. There was an unprecedented
Phil Wrigley Carl McPhail
(Saudi Arabia, UAE, Kuwait and Bahrain). level of discounting on the high street in
Employees Chief Financial Officer In addition, the group also operates 291 the run-up to Christmas and in January
18,605 Alastair Miller stores in France and Belgium which trade 2009 as customers continued to seek value.
under the Mim brand. Notwithstanding this, New Look performed
Permira Representatives well and in the 14 weeks to 3 January 2009
Date of Investment New Look was acquired by a company
Martin Clarke grew LFL sales by 2.8%, which made it one of
April Leanne Buckham
backed by the Permira funds and another
the best performing fashion fascias in the UK
financial sponsor in April 2004. Since then,
2004 New Look has added more than one million
high street. Online retail spending continues
Company Information to experience strong growth in the UK as
square feet of floor space to its portfolio and
Source Sales 2008 customers gradually change their shopping
Public Company £1,169m the company’s workforce has grown from
habits to benefit from the convenience of
12,400 in 2004 to 18,600 by 2008. New Look
Total size of transaction Financial Year End ordering online.
has also developed innovative product
€1,187m 31 March
ranges by working in partnership with In January 2009, New Look announced
respected designers such as Giles Deacon that it would be relocating its Buying,
(British Fashion Designer of the Year – 2006). Merchandising and Design Teams from
Weymouth to London. New Look’s
Throughout 2008, New Look has continued
distribution centre is located in Lymedale
to grow in the UK through a carefully
•Large UK-based Business Park, Newcastle under Lyme,
managed store roll-out plan and the
European fashion New Look is a European high-street development of new concept stores in
where its state-of-the-art facility was opened
at the end of 2005 to provide additional
retailer that has grown apparel retailer with a strong Liverpool, White City (London) and in
capacity and aid growth.
substantially since presence in the UK and stores also in Meadowhall (Sheffield). In-house design
teams work closely with preferred suppliers New Look is committed to ethical trading,
acquisition France, Belgium and the Middle East. to improve products and to expand ranges. as a member of the Ethical Trading Initiative
The company is positioned as a fast The company has also maintained its focus
(www.ethicaltrade.org) the company works
•Workforce grown from with trade unions, non-governmental
12,400 to 18,600; over fashion retailer with a broad product on margin through improved mark-down
organisations (NGOs) and outside experts
offering that focuses on womenswear, management, tight control of stocks and an
one million square feet increase in products designed in-house.
to improve supply chain working conditions.
of new retail space; but also includes footwear and Its international expansion is progressing New Look works with 339 suppliers in 29
development accessories as well as expanding well with the opening of a franchise store in countries to support ethical trading. In 2008
of in-house design Moscow in February 2009. Furthermore, the company carried out 421 in-depth audits
menswear. New Look’s online presence in the UK is of suppliers, working with local NGOs and
expertise creating a
strong reputation developing successfully. Impactt (www.impacttlimited.com). Further
information on New Look’s commitment to
The company also plans to introduce
ethical trade, including detailed information
•Online presence in the transactional websites for New Look in
on the programmes that are in place in
UK developing well, France and Belgium in the future.
individual countries, is available on the
websites in France New Look website.
and Belgium to be
introduced

72 Principal Hayley Group Our portfolio 73
Investment
Principal Hayley Group Overview
www.principal-hayley.com
Principal Hayley Group (Principal Hayley) is a hotel and
Sector Senior Management conference centre chain operating in the upper mid market
segment of the UK hotel and residential conferences market.
(Leisure) Roger Devlin Tony Troy
The group currently comprises 19 UK properties and two
Employees
Paul Nesbitt properties in continental Europe. Headquartered in Harrogate,
2,000 Permira Representatives
the group currently has around 2,000 employees.
Martin Clarke Joseph McIntyre
Principal Hotels was originally acquired by upon by building additional bedrooms and
Date of Investment Sally Flanagan
a company backed by the Permira funds in conference rooms within properties where
September September 2006 and since then has been there is sufficient demand. The Hayley
2006 Company Information
grown substantially through acquisition. In Portfolio hotels which had, under previous
Source Sales 2008
Financial Vendor £139m May 2007, supported by the Permira funds, ownership, operated on weekdays only,
Principal Hotels acquired Hayley Conference are now open all week, allowing them to
Total size of initial transaction Financial Year End Centres, creating Principal Hayley. A further welcome leisure and wedding guests as
€473m 31 December
five hotels were acquired during 2007 taking well significantly increasing occupancy
the total number of UK properties to 19. levels. The increasing trend towards central
During 2008 Principal Hayley successfully procurement by corporates will benefit
opened its first two properties in continental operators such as Principal Hayley who are
Europe, Château Saint Just, outside Paris able to offer a comprehensive range of
and La Mola, near Barcelona. conference facilities and locations.
Principal Hayley has taken a strategic Since acquisition the experienced
approach to geographical expansion. management team, led by Tony Troy,
The portfolio is located in key city centres has been strengthened through the
and other regional markets with strong addition of Paul Nesbitt as CFO, joining
corporate and leisure demand. The group from Malmaison/Hotel du Vin where he had
•Hotel and conference •Value creation plan •Focus on driving has actively sought out sites throughout the previously been CFO and COO, and Colin
centre group based on organic operational UK, as the regional hotel and conference Bailey as COO, joining from Von Essen and
growth and through improvements centre market has historically proven less having 10 years previous experience at
selective acquisitions volatile than London. UK regions enjoy a De Vere hotels. In addition, the company
greater share of domestic demand and as benefits from the experience of Chairman
such are less impacted by international Roger Devlin, previously Development
events and fluctuations in overseas business. Director at Hilton.
Principal Hayley is focused on building value The current difficult economic environment
by creating a strong brand and offering in could provide an opportunity to increase
the highly fragmented UK hotels and market share and to acquire hotel assets at
conferencing sector. The group’s hotels attractive valuations as vendors become
have undergone substantial refurbishment, distressed. The group will therefore consider
positioning them as leading corporate, acquisitions both in the UK and in key
conference and leisure destinations. The gateway cities in Europe.
value of the portfolio has been improved

74 ProSiebenSat.1 Our portfolio 75
Investment
ProSiebenSat.1 Overview
www.prosiebensat1.com
ProSiebenSat.1 Media AG (P7S1) is a pan-European
Sector Senior Management broadcasting group that is present in 13 countries and
TMT (Media) Chief Executive Officer Chief Financial Officer
reaches 77 million households and over 200 million viewers.
Thomas Ebeling Axel Salzmann
Employees Chief Operating Officer Head of Sales and Marketing

P7S1 operates 26 free TV stations and 22 radio networks.
6,057 Patrick Tillieux Klaus-Peter Schulz
P7S1’s core business is free-to-air TV the Sat. 1 channel from Berlin to Munich,
Head of New Media Head of German Free TV (which accounts for approximately 80% of where the rest of the group’s channels are
Dr Marcus Englert Andreas Bartl
Date of Investment the company’s sales). The company owns based, while the management team, led by
March Permira Representatives
Germany’s largest family of commercial TV Thomas Ebeling, the former chief executive
2007 Götz Mäuser Stefan Dziarski
channels and its free-to-air channels also of Novartis Pharma (who joined P7S1 on
occupy the number two and number three 1 March 2009), continues to implement a
Robin Bell-Jones Christoph Röttele
market positions in a number of other key detailed value creation plan, with the aim of:
markets including Belgium, Denmark,
Company Information • Driving sales by strengthening P7S1
Hungary, the Netherlands, Norway,
Source Sales 2008 free-to-air TV offering. The company has
Romania and Sweden.
Public Company €3,054m launched a new advertising sales model
In addition, P7S1 has a leading position in Germany and is seeking to strengthen
€6,786m 31 December in a range of other markets (which account its channel line-up by launching new
for approximately 20% of revenue). channels in key markets
P7S1’s internet presence is one of the
• Establishing content leadership by
most successful in Germany – only one
focusing on high-quality programming and
other company has more unique users of
sharing capability between the creative
its online property. The company is also at
functions of P7S1 throughout the footprint
the forefront of the development of digital
and multimedia content as well as being one • Building online activities by extending
of the largest radio operators in Europe. established internet properties, rolling out
•A pan-European •Value creation •Strengthening of internet offers in new geographies and
In March 2007, a company backed by the
leveraging the company’s content portfolio
broadcasting group, plan based on management team Permira funds and another financial sponsor
present in 13 countries synergies with SBS, significantly through acquired P7S1. In July 2007, P7S1 acquired P7S1 has already started to streamline its
and reaching 77 selective efficiency new hires SBS Broadcasting, another Permira fund asset portfolio through the sale of CMore
portfolio company. and BTI.
million households improvements and
and over 200 million investing in new P7S1 expects a challenging operating
viewers content and environment in 2009, as the effects of the
global economic downturn put pressure
online activity
on advertising revenues. In response to this,
the company has already initiated a number
of programmes including the relocation of

76 Provimi Our portfolio 77
Investment
Provimi Overview
www.provimi.com
Provimi is a world leader in the growing market of animal
Sector Senior Management nutrition, focusing on the high value-added segments of the
Chemicals Chairman and Chief Executive Officer Chief Financial Officer
market. The group is the largest pure player in the field of
Ton van der Laan Marcel Crince
Employees CEO of Provimi Pet Food

animal nutrition in the world.
8,000 Attila Balagh
Provimi produces a range of innovative segments of animal nutrition markets that
products and feed solutions serving the offer attractive growth prospects and can
Date of Investment nutritional and health needs of many animals fully benefit from its know-how and R&D
Philippe Robert
April Philip Muelder including: Premix; specialty products for capabilities. To that end, the company
2007 young animals; and animals with special successfully divested its fish feed business
Company Information dietary needs. Provimi is headquartered in in January 2008. The company has also
Source Sales 2008 Rotterdam, the Netherlands and operates adapted its organisation to provide the Pet
Public Company €2,154m 87 production centres in 30 countries. Food business with a management team of
FMCG specialists, that are now focused on
Total size of transaction Financial Year End The worldwide industrial feed market is
capturing growth in the Eastern European
€1,721m 31 December growing at 3% on average. The main growth
private label pet food sector.
is occurring in Asia Pacific, Latin America,
and Central and Eastern Europe with annual Mindful of the more difficult market
growth rates of more than 5%. Meat environment that 2009 will bring, Provimi
consumption is rising globally as a result is implementing a number of cost based
of increasing urbanisation and changing initiatives. The company is carrying out plans
diets. Poultry and swine show the strongest to protect its profitability and cashflow and
growth. Underpinning the global industrial to benefit from potential M&A opportunities
feed market is the anticipated global in Latin America and Eastern Europe.
population growth from 5.9 billion in 2000
to 7 billion in 2013.
•World leader in •Value creation plan •Plans to protect Provimi has embarked on an ambitious
animal nutrition has focused the profitability being value creation plan implemented by a new
company on higher implemented in light of management team with a simplified reporting
•Market leader in value-added segments the economic outlook and organisational structure. The company
has been repositioned and is now focusing
Eastern European of the market its developments on higher value-added
private label while divesting
pet food non-core assets

78 Seat PG Our portfolio 79
Investment
Seat PG Overview
www.seat.it
Seat Pagine Gialle (Seat PG) is a provider of yellow pages and
Sector Senior Management directory information services. It publishes printed and online
TMT (Media) Chairman Chief Executive Officer
yellow and white pages directories in Italy, where it has more
Enrico Giliberti Luca Majocchi
Employees General Manager Chief Financial Officer

than 95% market share and provides voice directory assistance
5,442 Massimo Castelli Massimo Cristofori services in Italy, Germany, France and Spain. Seat PG also
owns the ‘Thomson Local’ directories in the UK. The group
Date of Investment
Nicola Volpi employs more than 5,400 people and maintains a database
July Roberto Biondi
of 20 million households and three million businesses.
2003
Company Information
After several years of moderate growth In response to the toughening economic
Source Sales 2008 the Italian directories advertising market environment and in order to continue the
Public Company €1,376m
declined slightly in 2008. This trend is shift of business from print to internet, the
Total size of transaction Financial Year End expected to continue in 2009 with a decline company is pursuing a number of initiatives
€5,650m 31 December of print directories almost entirely offset by focused on increasing cashflow generation
an increase of online business. The Italian and liquidity. The key actions that
online advertising market grew at 32% from management are implementing are:
2004 to 2008 and is forecast to grow at
• Focus business on Italy by considering the
24% until 2011.
disposal of businesses in other countries
Since the Permira funds invested in the
• Development of a new salesforce that are
business, Seat PG has refocused on its
more skilled in acquiring new customers
core business so that it is better placed to
(particularly SMEs) and cross-selling
take advantage of the increasing importance
online products
of the internet and the liberalisation of
the European directory enquiries market. • Redirect advertising spending to
•Provider of yellow •Increasing investment •Responding to tougher In particular, in the last year Seat PG online products
pages and directory in online business environment in 2008 heavily increased investments in the online
• Costs reduction and capex optimisation
information services by strengthening sales advertising business to benefit from a
force, controlling fast growing market. The Permira funds also committed to invest
further capital in a rights issue in March 2009
costs and developing The focus of the company in 2008 has been
to support Seat PG’s implementation of the
its online offer on broadening its internet offer through the
actions outlined above, that are aimed at
launch of new websites and the introduction
helping the company through the downturn.
of several new products, in particular Search
Engine Optimisation, which has significantly
increased usage. The IT infrastructure at the
company has been renewed, with the
introduction of an SAP platform.

80 Sisal Our portfolio 81
Investment
Sisal Overview
www.sisal.it
Sisal is a betting and gaming operator in Italy. It operates in all
Sector Senior Management sectors of the Italian gaming market: lotteries, betting, video
terminals and bingo. Sisal employs around 900 people, has
(Leisure) Tommaso di Tanno Emilio Petrone
a network of 28,000 retailers in Italy and a chain of over
Employees
140 proprietary shops. The company has a long history
Nicola Volpi
867 Roberto Biondi of innovation in the Italian gaming market. In 1946, Sisal
launched Italy’s first ‘pool betting’ game and two years later
Company Information
Date of Investment
the company launched Italy’s first pool betting game based
October Source
Financial Vendor
Sales 2008
€327m on horseracing.
2006
€1,348m 31 December In 1997, Sisal re-launched the Italian lottery Although 2008 was a more difficult operating
Enalotto as SuperEnalotto, which is operated environment than has been seen in recent
under an exclusive concession from the years, Sisal generated a 17% sales increase
Italian State Treasury that will expire in 2018. compared to 2007, building on the good
As a result, Sisal provided the Italian Treasury performance of the company since it joined
with over €1.3 billion of income in 2008 the Permira portfolio in October 2006. Sisal’s
from the SuperEnalotto game alone. EBITDA has grown more than 30% following
the implementation of a four part
The Italian gaming market – which is
value-creation plan:
estimated to be worth €48 billion in
2008 – has historically recorded strong • Developing Sisal’s offering by ensuring
and sustained growth; from 1990–2005 that a wider range of products are available
Italian gaming grew by 12.5% (CAGR), at Sisal points of sale. This was achieved
while growth between 2005 and 2008 was by launching a new generation of gaming
19% (CAGR). This is the result of three terminals and the relaunch of the key
•Betting and gaming •Strong growth in 2008, •Value creation plan
principal drivers: SuperEnalotto game
operator with a despite economic based on launching
network of 28,000 downturn new products, • The introduction of innovative formulas • Expanding Sisal’s network of points of
in the traditional lottery business (such as sale from 21,000 to 28,000 at the beginning
retailers expanding points
SuperEnalotto) of 2009
of sale, reviewing
the cost base and • Greater control of unofficial gaming • Reviewing and reducing the company’s
strengthening operators e.g. sport/horse betting and in cost base
the gaming video terminals sectors and the
management entry of larger established brands into
• Strengthening the company’s
management team by appointing Emilio
these less established markets
Petrone, the former Chief Executive of
• An increase in the popularity of sports Mattel in Southern and Eastern Europe, the
and horserace betting Middle East and Africa, as CEO. Emilio’s
appointment has been supplemented by
a number of other senior hires

82 TDC Our portfolio 83
Investment
TDC Overview
www.tdc.com
The Danish telecoms market has become TDC has focused its operations on the key
increasingly competitive with the entry of low Nordic and Swiss markets by disposing
Sector Senior Management cost operators and electrical utilities. TDC’s of non-core international assets including
TMT (Telecoms) Chairman Chief Executive Officer position, as the Danish incumbent operator, Bité, One, Talkline, Polkomtel and by carrying
Vagn Sørensen Henrik Poulsen
is strong, providing residential, business and out a real estate sale and leaseback.
Employees Chief Financial Officer wholesale customers with a full suite of TDC has also been reorganised to facilitate
15,000 Jesper Ovesen communications services. In the Nordic greater cross-selling of products across
region, TDC is a leading provider of data business units.
Permira Representatives communication services to large and small
Date of Investment Throughout 2008, TDC has continued to
Kurt Björklund Christian Wallentin businesses and to wholesale customers
December Ola Nordquist through its pan-Nordic infrastructure.
reinforce its reputation for innovation in
online products. In March 2008, the
2005 A holding company, (Nordic Telephone company launched a new ground-breaking
Company Information
Source Sales 2008
Company (NTC), backed by a consortium music service, called PLAY, which offers free
Public Company DKK 38,819m of financial sponsors, including the Permira and unlimited access to music downloads to
funds, acquired TDC in December 2005. Danish mobile and broadband customers.
Total size of transaction Financial Year End The company has, since the acquisition, Later in the year, YouSee, TDC’s cable
implemented an ambitious value creation business launched a Web TV product that
programme and has significantly provides access to 17 different channels. TV
deleveraged the capital structure. The content is streamed directly to the computer
management team has been significantly via a broadband connection, meaning that
strengthened, with new appointments in for the first time in Denmark, the customers
almost all senior positions. Henrik Poulsen can view TV from different content providers
was appointed as chief executive in on one web page: http://yousee.dk/web-tv
November 2008, having most recently
TDC has experienced a challenging trading
successfully led operational improvement
environment in 2008, with downward
initiatives at TDC’s largest business unit,
pressure on revenues compared to 2007.
Fixnet Nordic. In addition, Jesper Ovesen,
However, the company has at the same time
•Major telecoms provider TDC is a provider of communications who was previously CFO at Danske Bank
substantially improved its cost position whilst
in Denmark, Switzerland solutions in Denmark and the and Lego Company, became chief financial
ensuring that all business units remain
and the Nordic Region officer in January 2008.
second-largest full scale telecoms focused on serving their customers, thus
TDC’s new leadership has substantially delivering substantial profit growth during
•A change of culture and operator in Switzerland. TDC has changed the corporate culture into being the year. In 2008, the company, for example,
a focus on key markets around 11.9 million customers, more collaborative and fast paced. outsourced the network operations in its
The company has also adopted a more Swiss business to Alcatel-Lucent and the
including nearly 8 million customer customer-centric and cost focused mobile network in Denmark to Ericsson.
•A focus on costs and accounts in Denmark. It also has a organisation which enables it to
on providing innovative significant presence in markets compete effectively.
ways of delivering
content across the Nordic region and in
Central Europe.

84 Telepizza Our portfolio 85
Investment
Telepizza Overview
www.telepizza.es
Telepizza is a Spanish home delivery and take away pizza
Sector Senior Management business that was founded in 1987 in a small Madrid pizza
restaurant. Today, Telepizza operates around 650 outlets
Pedro Ballvé José Carlos Olcese
Employees Chief Financial Officer Chief Operating Officer

in Spain (both owned and franchised) that reach 12 million
6,500 Igor Albiol Fernando Zapater households. The company has an international presence
in Portugal, Chile, Poland and Central America, where it
Date of Investment
Carlos Mallo Jose Múgica operates over 400 stores. According to DBK, Telepizza is
September Francesco de Mojana
the market leader in the pizza delivery market in Spain, with
2006 a 70% share.
Company Information
Source Sales 2008
Public Company €401m In 1996, Telepizza was listed on the The company is focused on leveraging its
Madrid Stock Exchange and in 1999 the customer database through the development
main founders sold the remaining stake to of CRM marketing activities. It has also
€962m 31 December
a group of investors led by Pedro Ballvé relaunched its internet platform, backed by
(Carbal). On 28 February 2006, the Permira a national television advertising campaign.
funds launched a successful public tender The result was a rise in the percentage of
for 100% of the share capital of Telepizza Telepizza’s orders taken online from around
alongside Carbal. The company was 1.5% in July 2008 to 8.8% in January 2009.
delisted in March 2007. Additionally the company is implementing
several efficiency plans to rationalise
Telepizza has a vertically integrated business
operations both at store and at HQ level,
model. It owns state-of-the-art production,
as well as working to maximise purchasing
warehousing and distribution facilities that
and industrial savings. In 2008, Telepizza’s
supply all Telepizza outlets, utilising the
chain sales have been robust with sales
latest technology; seven dough and cheese
•Spanish-based •Resilient performance •Strong growth growth of 1.2% in 2008 (from €517 million
factories operate from sites in Spain,
international pizza in the Spanish market of international Poland, Portugal and Chile.
to €524 million).
delivery business, supported by strong operations
Permira and Carbal are supporting
with more than 1,000 brand and mix of representing
Telepizza´s management team, led by the
outlets globally products, price and c.25% EBITDA executive vice-chairman and chief executive
service well-regarded José Carlos Olcese, as it implements a series
by consumers of top and bottom-line growth initiatives. In
Spain the company is focusing its strategy
on leveraging its brand recognition by
completing store roll-out in malls and smaller
towns, mostly through franchisees.

86 Valentino Fashion Group Our portfolio 87
Investment
Valentino Fashion Group Overview
www.valentinofashiongroup.com/www.hugoboss.com
Valentino Fashion Group (VFG) is a global fashion and
Sector Senior Management luxury goods group that bears the name of the renowned
Consumer (Retail) VFG Chief Executive Officer VFG Chief Financial Officer
couturier Valentino Garavani. VFG operates in more than
Stefano Sassi Luca Vianello
Employees HB Chief Executive Officer HB Chief Financial Officer

100 countries, with over 1,500 single-brand boutiques and
13,000 Claus-Dietrich Lahrs Norbert Unterharnscheidt 371 directly-managed shops. More than 13,000 employees
work in directly controlled companies and branches spread
Date of Investment Permira Representatives across 27 countries.
May Gianluca Andena Ulrich Gasse
2007 Martin Weckwerth
Fabrizio Carretti
Olaf Koch The group’s three business units cover the creation programme is being driven by new
entire luxury goods and fashion sectors, CEO, Claus-Dietrich Lahrs, former managing
offering a wide variety of styles and products: director of Christian Dior Couture, who was
Company Information
appointed in May 2008. Since then HUGO
Source Sales 2008 • HUGO BOSS, which represents more than
BOSS has reorganised its creative and brand
Public Company €2,207m1 75% of total group sales, includes the
management teams to ensure that full focus
BOSS and HUGO brands
Total size of transaction Financial Year End is given to the development of each
€5,343m 31 December • Valentino features the prestigious brand individual brand, which include BOSS Black,
Valentino, with the lines Valentino Roma, BOSS Orange, BOSS Green and HUGO.
RED Valentino and Valentino Garavani
Throughout 2008, VFG’s flagship ‘Valentino’
(accessories)
business was focused on developing its
• Licensed brands include Marlboro product offering by creating a more
Classics and M Missoni, in addition to contemporary product range, with a new
the group’s own brands Lebole, Oxon twist in prêt-a-porter, but in line with the
and Portrait business’ heritage, and new offers in
accessories and menswear. The Valentino
Geographic expansion and product line
•Global fashion and •New chief executive •New design team management structure, completed in 2008
extensions drive the value creation strategy
luxury goods group, officer appointed at at Valentino and led by group CEO Stefano Sassi, is
for VFG. Today Europe remains the largest
working to manage the transition from the old
operating in more than HUGO BOSS market for the group (c.70% of sales),
design team, led by Valentino Garavani, to
100 countries followed by North America (18% of sales),
the new design team headed by Maria Grazia
while Asian markets are continuing to grow
Chiuri and Pier Paolo Piccioli and to develop
in importance (12% of sales). During the last
the company’s retail culture and to expand
months, several efficiency measures and
coverage of some emerging markets
cost saving initiatives have been identified
including China.
and are being implemented across the
group’s three business units. VFG’s ‘Licensed brands’ business also
continued to grow during the period. The
Over the course of last year, the ‘HUGO
Marlboro Classics label now operates 385
BOSS’ brand continued to broaden
shop-in-shops and 189 exclusive stores,
its product offering by expanding its
while a new 10-year partnership has been
accessories range and developing its
recently renewed for the M Missoni line.
womenswear lines. HUGO BOSS’ value
1
Total group sales. Source: Consolidated Annual Report

88 Appendix
Appendix Contact details

Walker “Guidelines Permira complies with the Walker “Guidelines for
Disclosure and Transparency in Private Equity”.
Frankfurt
Contact: Jörg Rockenhäuser
Paris
Contact: Philippe Robert
for Disclosure and Enhanced Walker stipulated thresholds
Permira Beteiligungsberatung GmbH Permira Advisers LLP
Clemensstraße 9/Falkstraße 5 374 rue St. Honoré
Transparency in disclosure by a to identify the companies 60487 Frankfurt am Main 75001 Paris
portfolio company that would be covered by its
Private Equity.” enhanced reporting guidelines
Tel: +49 69 97 14 66 0 Tel: +44 203 031 91 60
in the UK. The Permira funds’ portfolio companies
covered by these thresholds are Acromas (page 42), Guernsey Stockholm
Gala Coral Group (page 60) and New Look (page 70). Contact: Alistair Boyle Contact: Ola Nordquist
These companies will report on a ‘comply or explain’ Permira (Guernsey) Limited Permira Advisers KB
basis as detailed by the guidelines. PO Box 503 Birger Jarlsgatan 12
Trafalgar Court 114 34 Stockholm
A number of other Permira funds’ portfolio companies Les Banques Tel: +46 8 503 122 00
in the UK that do not qualify will also, nonetheless, St Peter Port
report as recommended by the Walker Guidelines. Guernsey GY1 6DJ Menlo Park
Tel: +44 1481 743200 Contact: Richard Sanders
Communication This annual review forms the Permira Advisers L.L.C.
by a private basis of Permira’s compliance
London 64 Willow Place
equity firm with Walker’s guidelines for
communication by private Contact: Ian Sellars Suite 101
equity firms. As requested by Walker, it outlines the Permira Advisers LLP Menlo Park CA 94025
firm’s investment approach and history (see introductory 80 Pall Mall Tel: +1 650 681 4701
pages and detail throughout the document). It also London SW1Y 5ES
details the holding period for our investments (see date Tel: +44 20 7632 1000 New York
of acquisition for each of our investments in the portfolio Contact: John Coyle
section, pages 38-87) and contains a number of case Luxembourg Permira Advisers L.L.C.
studies in the form of recent realisations (pages 22-27) Contact: Séverine Michel 320 Park Avenue
and investments discussed elsewhere in the document. Permira Luxembourg S.àr.l. 33rd Floor
282, route de Longwy New York NY 10022
The review also clearly identifies the leadership of the
L-1940 Luxembourg Tel: +1 212 386 7480
firm globally in the chairman and co-managing partners’
statements. The UK office of Permira is headed by Tel: +352 26 86 811
Ian Sellars. The Governance section of the document Hong Kong
(page 36) confirms that arrangements are in place to Madrid Contact: Henry Chen
deal appropriately with conflicts of interest. The source Contact: Carlos Mallo Permira Advisers Limited
of our funds’ capital is detailed in the Investor section Permira Asesores S.L. Unit 2806-2807, 28F
(page 34). UK institutions account for approximately Plaza del Marques de Salamanca, 10 One Exchange Square
34% of our most recent fund, post reorganisation. Primero Izquierda Central Hong Kong
28006 Madrid Tel: +852 3972 0800
Each of Permira Advisers, Permira Advisers (London) Tel: +34 91 4182499
Limited, Permira Advisers LLP and Permira Debt Tokyo
Managers Limited are regulated in the United Kingdom Milan Contact: Alex Emery
by the Financial Services Authority. These entities, Permira Advisers KK
Contacts: Gianluca Andena
alongside the different entities in each of the
and Nicola Volpi Akasaka Intercity Building 3F
geographies in which Permira is active, each
individually act as advisers or consultants in relation Permira Associati S.p.A. 1-11-44 Akasaka
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Permira Funds’ 2008

Permira Annual Review 2008

Permira Annual Review 2008 Permira Annual Review 2008

NDS (page 68), the Permira funds’

Permira Annual Review 2008 Permira Annual Review 2008

the nature of this

downturn will play

Permira Annual Review 2008 Permira Annual Review 2008

All3Media (page 44) is leading the

Permira Annual Review 2008 Permira Annual Review 2008

Throughout 2008 we remained focused on

Permira Annual Review 2008 Permira Annual Review 2008

Message from the

€2.3 bn 36 saw significant downward movement; credit was severely

In these conditions, we remained focused on returning

Permira Annual Review 2008 Permira Annual Review 2008

Invested Realised 2007 2008 Value (€bn) Number of investments Q1 Q2 Q3 Q4

Permira Annual Review 2008 Permira Annual Review 2008

In 2009 the focus

ensuring the right

Elsewhere, TDC (page 82) has launched new, innovative

The process of strengthening the portfolio is being

Permira Annual Review 2008 Permira Annual Review 2008

We will adjust to the

have many times

before, but value

In December we announced that we had successfully

always remain at the

Our role as a private equity firm is to transform the

Permira Annual Review 2008 Permira Annual Review 2008

Arysta LifeScience (page 46) is the

Permira Annual Review 2008 Permira Annual Review 2008

debitel July • Grew substantially under Permira funds’ ownership: value

Aearo April • Manufacturer of personal protection equipment

Intelsat February • Provider of fixed satellite services

Permira Annual Review 2008 Permira Annual Review 2008

Jet Aviation www.jetaviation.com

services company. The company provides Employees

engineering and fixed base operations, Improved performance:

Jet also expanded by making strategic

acquisitions. In March 2006, it acquired

Midcoast, a US-based aircraft maintenance

North America. More recently, in January

2008, Jet acquired US-based maintenance

debitel is a mobile Sector

Permira Annual Review 2008 Permira Annual Review 2008

Animals in more than 100 countries

Permira Annual Review 2008 Permira Annual Review 2008

Investing in society Breakthrough Portfolio break through

Permira has also helped ORK fulfil its ambition of

Permira Annual Review 2008 Permira Annual Review 2008

London long-term orientation.

Luxembourg Permira professionals, with their wide range of

Milan Our international network of offices also helps support

New York the global ambitions of the businesses owned by our

Sectors The strength of our organisation relies on our local

Permira Annual Review 2008 Permira Annual Review 2008

long-term investment, We are primarily focused on the

The funds have consistently outperformed the stock Charities &

In December 2008, we announced that we had

Permira funds, net annual IRR (internal rate of return)

Industry upper quartile 18%

Since inception (1985–2008)

(Source: Permira, Datastream, Thomson Financial, Dec 2008)