Annual Review

Annual Review 2007

Contents

1 OVERVIEW 2 OUR THREE BUSINESSES 3 LETTER FROM THE CHAIRMAN 4 2007 REVIEW 5 OUR INVESTORS 6 OUR RESPONSIBILITY TO THE WIDER COMMUNITY 8 OUR PRIVATE EQUITY BUSINESS 10 VALUE ENHANCEMENT 12 CASE STUDY: RHM →

PORTFOLIO COMPANY REVIEWS 14 20:20 MOBILE GROUP 15 AVANZA GROUP 16 BALTA 17 HELLERMANNTYTON 18 IMPRESS 19 KP1 20 LM GLASFIBER 21 MOELLER 22 NORIT 23 TUMI 24 TV3 25 ZOBELE 26 28 30 32 34 36 38 40

OUR REAL ESTATE BUSINESS REAL ESTATE IN 2007 CASE STUDY: KISTA OFFICE PORTFOLIO OUR TECHNOLOGY VENTURES BUSINESS TECHNOLOGY VENTURES IN 2007 CASE STUDY: TRIDION THE DOUGHTY HANSON CHARITABLE FOUNDATION CONTACT INFORMATION

22 years Doughty Hanson has made 115 investments and returned $7.84bn to investors.

Today we have 123 employees, including 56 investment professionals working for over 250 investors Over the last

Doughty Hanson 1 Annual Review 2007

Overview

Doughty Hanson is one of europe’s leading independent Private Equity firms Since Nigel Doughty and Richard Hanson started working together in 1985, Doughty Hanson has built a successful track record in three asset classes, investing across Europe, and supported by a global investor base. Today we number 56 investment professionals working across eight European offices.

Led by an executive board of Nigel Doughty, Richard Hanson, Max Lever and Stephen Marquardt, the company operates through three independently managed businesses: Private Equity, Real Estate and Technology Ventures.

It is our intention to provide an update on our strategy, activities and ongoing investments in this annual document, based upon the recommendations outlined by Sir David Walker in his Guidelines for Disclosure and Transparency in Private Equity.

The Walker Guidelines propose enhanced disclosure by portfolio companies with an enterprise value in excess of £500m at the time of acquisition and more than 1,000 UK employees. Although none of the companies currently owned by Doughty Hanson funds meets the Walker criteria, we feel it is appropriate to provide an overview of our portfolio companies in this document.

Doughty Hanson welcomes feedback on this review as we strive to be a leader in how we communicate with all of our stakeholders. Please contact info@doughtyhanson.com

2007 Doughty Hanson committed €528m to 12 new investments, made a further 22 add-on investments and created 3,824 new jobs In

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our three businesses → Private Equity → Real Estate → Technology Ventures

investing in market-leading companies INvesting in real estate assets and projects investing in technology and entrepreneurs

Private Equity

value investing

Doughty Hanson has established a strong track record over more than 20 years of buying and developing market-leading businesses in Europe. Since 1985, we have assisted many household name companies successfully transition from family businesses to international organisations with world-class, professional management teams.

Our particular focus is on mid-market businesses with an enterprise value of €250m – €1bn. Many of the companies we have acquired are now listed on major international stock exchanges; others have become divisions of larger global companies. We work in close partnership with management, developing shared strategic goals and providing detailed support through the value enhancement initiatives that we undertake.

Real Estate

asset investing

Doughty Hanson established its first Real Estate fund in 1999 and has since become one of Europe’s leading property investors and developers, active in the office, retail, residential and logistics sectors. The investments undertaken range from the acquisition of existing single assets and portfolios to complex, ground–up developments and urban regeneration projects.

We play an active, hands-on role in planning and overseeing a project’s development, often working closely with governments and corporations to deliver value-enhancing solutions. Doughty Hanson has played a leading role in the urban regeneration of a number of European cities.

Technology Ventures

GROWTH INVESTING

Doughty Hanson is a leader in technology and growth company investing in Europe.

We invest in exceptional entrepreneurs and management teams that have the passion, commitment and vision to conceive great ideas and build global businesses.

Our Technology Ventures fund targets companies that develop sophisticated and proprietary technologies.

We have invested in a number of sectors such as micro-components and systems, software and the Internet, and clean energy technology companies. Typically, we lead investments in technology start-ups and continue our commitment and support throughout the growth and entire life cycle of a successful business.

Doughty Hanson 3 Annual Review 2007

Letter from the Chairman

The feedback that followed the Annual Meetings we held for each of our businesses last year focused principally on the excellent track record we have enjoyed, and the depth and scope of the Doughty Hanson operation This track record has been built over 22 years and more than 100 investments. Today there are 123 people working inside Doughty Hanson across our eight European offices including 56 investment professionals. Ours is a business with a culture of delivering a strong and sustained performance over many years, wherever we are in the economic cycle.

Throughout 2007 our Private Equity team continued to invest substantial time and effort in adding value to our portfolio. Our value enhancement activities focused on sales and marketing strategies, procurement efficiencies, financial systems and processes, working capital optimisation and supply chain management. In addition, our portfolio companies made add-on acquisitions throughout Europe.

The Real Estate team has focused on creating a diverse property portfolio across Europe, from cash generative assets with value creation potential through improved tenant and building management, to development projects focusing on urban regeneration in prime locations. All of our projects target the highest environmental ratings. We are well placed to capitalise on a changing market which has created a wide range of opportunities.

During 2007 our Technology Ventures team invested in clean technology companies in the areas of plastics recycling, energy efficiency and solar energy generation. Doughty Hanson helped each of these companies lay the groundwork to establish significant

manufacturing plants within the EU, creating valuable environmental technology products and hundreds of jobs in this growing sector.

Our investors expect us to respond to the challenge of originating excellent opportunities across all three of our businesses. It is our determination to meet this challenge that has been at the root of our decision in recent years to invest in developing the size and strength of our team.

This process continued last year with the appointments of Max Lever and Stephen Marquardt to become joint Chief Operating Officers of the firm. This will enable Dick Hanson and me to focus on anticipating macro trends, sourcing new deals and developing the business into new markets.

One theme that has remained constant throughout our history has been the firm’s commitment to the wider community. This impacts on everything we do.

For instance, last year Doughty Hanson became the first private equity firm to secure carbon neutral status. Our firm’s charitable foundation supported more than 40 projects in 2007. We were also one of the original backers of Bridges Ventures, a privately owned venture capital company investing in businesses which deliver strong social benefits. We became the first private equity firm to be a signatory to the Principles for Responsible Investment established by the Secretariat of the United Nations,

further demonstrating our commitment to being a responsible investor.

Doughty Hanson has begun 2008 cautiously optimistic about the scale of opportunities present in Europe.

We are focused on improving our existing portfolio operationally and making new investments.

We remain determined to deliver excellent returns for our investors, whatever the financial climate may be. Doing this successfully will ensure that Doughty Hanson remains one of Europe’s most successful independent private equity firms, managing funds on behalf of leading investors from around the world.

Consequently, given the scale and scope of our business, it is now appropriate to publish an annual review that provides all stakeholders with an opportunity to share our vision for the future.

It is our intention that this annual review will provide an update on our strategy, activities and ongoing investments.

I would like to thank my colleagues in the firm and in our portfolio companies for their continued hard work. Finally, I want to use this opportunity to thank our investors for their continued support.

Nigel Doughty Chairman

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2007 review Doughty Hanson has committed €528m to 12 new investments, made a further 22 add-on investments and created 3,824 new jobs

Private Equity → SELLS

REMAINING STAKE IN SAFT NORIT IN THE NETHERLANDS → FUND V CLOSES AT €3BN → 20:20 MOBILE GROUP ACQUIRES AXCOM IN SWEDEN → SELLS NORTH AMERICAN MEMBERSHIP GROUP TO PILOT GROUP → CTSA ACQUIRED IN SPAIN AS FOLLOW-ON TO AVANZA → AGREES TO SELL MOELLER GROUP TO EATON CORPORATION → ACQUIRES

REAL ESTATE → INVESTS

IN REDEVELOPMENT OF HOWICK PLACE, LONDON MAXIMILIANHÖFE FOR €270M → SELLS ISO OMENA SHOPPING CENTRE IN FINLAND → INVESTS IN BLYTHE VALLEY PARK, SOLIHULL → ACQUIRES 50% SHAREHOLDING IN SPANISH RESIDENTIAL DEVELOPER ARANCO → ACQUIRES LIGHT INDUSTRIAL SITES IN AVRIGNY AND TOULOUSE → SELLS KISTA OFFICE PORTFOLIO IN SWEDEN → SELLS MACIACHINI OFFICE DEVELOPMENT IN MILAN FOR €380M → SELLS

TECHNOLOGY VENTURES → INVESTS

IN MOBILE SECURITY COMPANY ADAPTIVEMOBILE IN PLAZES → SELLS TRIDION TO SDL INTERNATIONAL FOR $94M → INVESTS IN PLASTICS RECYCLING COMPANY MBA POLYMERS → SELLS MOBILE ADVERTISING COMPANY ACTIONALITY TO YAHOO! → ODERSUN RAISES $90M FOR CAPACITY EXPANSION → INVESTS

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OUR INVESTORS

Investors in Doughty Hanson’s funds represent a broad spectrum of institutions from across the globe. The investor base is not dominated by any single geographic area but enjoys strong representation from the US, Europe and the Rest of the World Doughty Hanson’s investors include a diverse mix of pension funds, family offices, endowments, funds of funds, governments, insurance groups and banks. Our pension fund investors range from high school teachers in the United States to police officers in Canada, university professors in the United Kingdom and retired telecommunications workers in Australia.

We are also proud that the investor base features strong representation from family offices around the world, including several families who have sold businesses to us and subsequently chose to invest some of the proceeds in our funds.

Our investors benefit from the experience of Doughty Hanson’s in-house reporting and monitoring teams who provide ongoing support through state of the art online reporting systems. Our team of dedicated investor relations professionals also provides investors with regular updates on the portfolios and access to senior members of the investment teams.

OUR FUNDS PRIVATE EQUITY → FUND I → 1990 → FUND II → 1995 → FUND III → 1998 → FUND IV → 2004 → FUND V → 2007 REAL ESTATE → FUND I → 2000 → FUND II → 2005

OUR INVESTORS BY GEOGRAPHY →

£167M → DM1BN → $2.7BN → €1.5BN → €3.0BN → →

$616M €530M

TECHNOLOGY VENTURES → FUND I → 2000 → $237M

United States Other Asia United Kingdom Europe (excluding UK)

OUR INVESTORS BY TYPE Insurance companies Endowments of academic and other institutions Funds of funds Governments Banks Pension funds Private individuals

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Our responsibility to the wider community

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The world’s best institutions understand that with sustained success come a number of responsibilities to the communities in which they operate. Private equity firms have not traditionally been self-aware in terms of their social responsibility, but it is something Doughty Hanson has been engaged in for many years

Last year Doughty Hanson became a carbon neutral organisation. We started work on this in 2006 ahead of an audit to assess our carbon footprint. After this had been completed, we spent a number of months implementing its recommendations before officially becoming carbon neutral in May 2007.

During 2007 the Doughty Hanson Charitable Foundation celebrated its seventh anniversary. It supported more than 40 projects – a record number for any one year – and is focused on helping individuals and small organisations realise their potential. Further details of the Foundation’s work can be found on pages 38-39.

Doughty Hanson has also been a longstanding supporter of Bridges Ventures, a privately owned venture capital company investing in businesses which deliver strong social benefits through their geographical focus in under-invested areas in the UK. Finally we became the first private equity firm to be a signatory to the Principles for Responsible Investment, established by the Secretariat of the United Nations.

This means a commitment to behave responsibly in environmental, social and corporate governance issues.

Our business stopped operating in a purely profit vacuum many years ago.

These initiatives are not about ticking a box. They are an intrinsic part of our business and will continue to play an important role in 2008 and beyond.

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our Private Equity business

Doughty Hanson 9 Annual Review 2007

Doughty Hanson has delivered an exceptional performance in private equity investments for over 20 years

The creation of one Europe The next decade will see Europe further consolidate its position as a single economic marketplace with a critical role to play in the global economy. It is a market encompassing more than 500m people stretching across some of the largest economies, such as France and the UK. But there is also a huge opportunity in New Europe’s tiger cub economies such as Poland, Romania and the Czech Republic that combine double-digit growth potential with political and economic stability.

Consequently the region offers some of the best investment opportunities in the world. We have offices in eight major European centres, enabling us to anticipate these opportunities. Over the next decade there is a major opportunity to create regional market leaders through industry consolidation. Achieving this demands our on-the-ground commitment to identify and secure exceptional investment opportunities for our funds and their portfolio companies.

Helping family businesses face succession and globalisation We are proud that every Doughty Hanson private equity fund has included businesses that have been purchased from families.

Family businesses are intrinsic to European industry. By bringing a long-term approach to the development of their ideas and assets, these families have created exceptional businesses over many decades. But globalisation is driving change. Today families routinely ask: what is the best structure to prepare for growth, industry consolidation and succession in the 21st century?

These are issues that Doughty Hanson has extensive experience in addressing.

The effort that goes into developing our relationships with family business leaders is built on mutual trust and respect. Conversations may begin with discussions about succession, but in every instance we take time to demonstrate how we may be in a position to bring new ideas, capital and energy to their businesses, as well as provide structuring and financing expertise.

Driving value enhancement We invest on the principle that, no matter how well a business is being run, every company we own needs to have a strategy for enhancing its value.

We work closely with portfolio companies to develop and execute tailored projects which add significant value, combining the development of new business and product strategies with improved cash generation, cost reduction and long-term revenue growth.

Our value enhancement professionals have backgrounds in marketing and brand development, manufacturing, procurement, working capital optimisation, supply chain management as well as financial systems and processes.

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Value Enhancement

Doughty Hanson works closely with portfolio company management to maximise opportunities for value creation. The range of initiatives that we put in place includes developing strategies for top-line growth, improving product quality, optimising supply chain efficiencies and developing long-term business planning

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During 2007, we carried out comprehensive business reviews at companies we recently acquired, such as Zobele, KP1, Avanza and Norit, and continued to manage the ongoing programmes already in place throughout the existing portfolio. Some examples of the work we carried out in 2007 include:

Balta Balta initiated a lean manufacturing programme for its carpet and rugs business units with the aim of realising savings of over €4m in 2008. We continued to focus on the company’s working capital and improving inventory turns throughout 2007 which led to a reduction of €7.5m in the value of inventory by year end. A new factory was completed on time and within budget at Usak in Turkey and began production of a new range of acrylic rugs in August 2007. In June 2007 Balta’s wall-covering unit was sold to GIMV, a Belgian listed private equity manager, for €50m.

HellermannTyton Following an extensive review of the business towards the end of 2006, a major initiative was undertaken to restructure HellermannTyton’s manufacturing and supply chain operations. This included a significant expansion and reorganisation of manufacturing capacity in Europe, the renegotiation of supplier contracts, improvements in distribution capability and a rationalisation of the company’s product range.

LM Glasfiber LM Glasfiber continues to grow faster than the market. In 2007 the business added more than 2,000 employees and opened new facilities in China, India and Spain. During the year we pursued a very successful programme to improve productivity by reducing cycle times across all our existing facilities, and established further programmes to reduce process variability and assure quality as well as to improve supplier quality and delivery performance. LM continued its health and safety programme throughout the year following a very successful worldwide review of its processes in 2006.

Tumi In 2007 the group’s rapid expansion outside of the United States placed greater demands on Tumi’s supply chain and distribution capabilities. We established a new logistics function in Thailand to serve the growing Asia Pacific market and Tumi’s existing warehouse facility in Germany was expanded to meet growing demand in Europe. A detailed review of quality management processes was completed in August 2007. In addition a series of initiatives has been implemented with a view to improving Tumi’s retail operations. The programmes cover staff recruitment and training and the better use of key performance indicators across all of the company’s stores.

Moeller At Moeller, we contributed to the implementation of two large-scale programmes which anticipate annualised cost savings of more than €40m. Within the Industrial Automation division, a significant manufacturing rationalisation was undertaken, comprising outsourcing/off-shoring of non-core manufacturing processes and the merger of two German manufacturing plants to create a new “Competence Centre” for key components. We also implemented a global procurement programme focused on reducing the number of suppliers, and updated procurement tools and processes. Both opportunities were identified during due diligence at the time of our acquisition and delivered the targeted levels of savings.

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Case study: RHM

In JULY 2000, tomkins PLc announced the sale of branded food producer rankS hovis mcdougall (RHM) to Doughty Hanson for ÂŁ1.15bn, representing an entry multiple of 5.5x Ebitda

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The investment RHM represented an attractive investment opportunity due to: →→ Market leadership positions with branded products (95% of UK households purchased RHM products during 1999/2000) →→ Stable market growth with strong cash generation →→ Significant potential to improve the profitability of the business through a value enhancement programme What happened?

Over the next five years, RHM faced tough competition and continuous pricing pressure.

RHM was restructured during this period, culminating in a successful IPO in the summer of 2005. Doughty Hanson provided significant support to the management team in identifying opportunities and driving through the changes from which a “New RHM” emerged. →→ Cultural change – RHM had a manufacturing-led culture focused on volume and maximising capacity utilisation. We introduced new performance measures aligned with shareholder value, focusing management on maximising profits and cash. Budgets became “stretch” targets with greater accountability for managers, but also more lucrative financial rewards for out-performance

→→ Centralisation of functions RHM had previously been organised as a loose “federation” of independent businesses, not working together to leverage scale and attain their full earnings potential. We worked with management to set up and implement a centralised procurement function.

Reducing the total number of suppliers by one third, and implementing other procurement measures in logistics and back office processes, generated £40m of annualised savings →→ Development of strategy We worked with management to identify RHM’s core business activities and subsequently generated more than £125m through the divestment of non-core businesses. Greater focus was placed on growth of branded products, and RHM invested significantly in its stable of iconic brands. Under our ownership, RHM developed and launched Hovis Best of Both and Hovis Invisible Crust

→→ Reduction of pension deficit The pension deficit reached £520m in May 2004. We worked with management and employees to significantly reduce this by agreeing a change in terms while maintaining the scheme’s defined benefit plan.

After a cash injection to the pension scheme as part of the IPO the deficit was reduced to £128m in May 20051 Exit “New RHM” was a different company: the culture was performance-driven and focused on a clear strategy of profitable growth of branded products.

In July 2005, RHM was listed on the London Stock Exchange with a market capitalisation of £958m and an enterprise value of £1.67bn. Doughty Hanson retained a 26.6% stake in the listed company. The remaining stake was sold in July 2006, generating a gross return of 3.3x money invested.

→→ Reinvigoration of Manor Bakeries RHM’s cake division faced declining market sales, strong competition and high fixed costs.

We implemented a comprehensive turnaround programme focused on top-line growth and cost reduction, through factory consolidation and headcount reduction, thereby returning the division to profitable growth

Based on pro forma pension deficit post-IPO payment, deficit shown net of £54m deferred tax

1

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Portfolio Company Review 20:20 Mobile GROUP

20:20 Mobile GROUP is a leading UK, European and global distributor of mobile phone handsets and accessories

20:20 mobile group Weston Road Crewe, CheshirE CW1 6BU UK www.2020mobile.co.uk Investor:

Fund IV

Turnover (2007):

£695.8m

Number of Employees:

Management Meinie Oldersma - CEO NICK SMITH - CFO Doughty Hanson Team Julian Huxtable John Leahy Marco Mendes Matthew Appleton Matthew Murphy Jon Higginson

1,638

20:20 Mobile Group was founded in 1987 in the early years of the mobile phone industry, and has since grown to become one of the largest European distributors of mobile handsets and accessories. The business is the UK’s largest handset distributor providing the industry with industry-leading logistics, fulfilment packages, marketing and after-sales support.

20:20 Mobile Group is also the marketleading distributor of mobile handsets in Spain, Ireland and, following the acquisition of AxCom in July 2007, in Sweden, and operates in France, Norway, Denmark and Dubai.

The group’s logistics service offering comprises a wide range of value-added services including bespoke configuration of products, category management, customer services (e.g. hosting of call centres and websites) and many more.

These capabilities, combined with the group’s buying power and 30,000 pallet stockholding capacity, act as barriers to entry for smaller distributors as do the group’s long-established relationships with customers and suppliers. Moreover, the scalability of the business model provides scope for further international expansion through leveraging relationships with global customers and suppliers.

Work continues intensively at 20:20 Mobile Group as the industry experiences challenging structural change. The Doughty Hanson team is working closely with the company’s new management team to strategically position the business to face up to the challenges of the marketplace and to implement a number of value enhancement measures in order to maintain the company’s market-leading position.

20:20 Mobile Group is committed to identifying and reducing its impact on the environment. To demonstrate compliance with the Environmental Management Standard ISO 14001, 20:20 Mobile Group actively monitors its operations in the UK, Ireland and Sweden.

In 2007 the UK operations reduced the waste sent to landfill by 15.8%, electricity usage by 7.4% and gas usage by 21.5%.

The Mobile Phone Repair Centre (MPRC), a division of 20:20 Mobile Group, repairs and recycles secondhand phones given to it by UK retailers and distributes them to Asia. In 2007, MPRC recycled over 90,000 phones.

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Portfolio Company Review AvanzA GROUP

Avanza GROUP is Spain’s largest urban bus operator, second largest long-distance operator and largest operator of bus stations

avanza group Crta. N-VI, Km. 16,800, c/ Flandes, 2 28031 Las Rozas Madrid Spain www.avanzagrupo.com Investor: Turnover (2007):

Fund V €253.3m

Number of Employees:

Management Jesús López Torralba - CEO Valentin Alonso - CFO Doughty Hanson Team Francisco Churtichaga Tim Robson Christopher Fielding David Torralba Mike Youlden Marco Mendes Jon Higginson

3,259

Avanza Group was created in March 2002 as a result of the merger of Auto Res, S.L., Transportes Urbanos de Zaragoza, S.A. and Viguesa de Transportes, S.A., and the subsequent acquisition of La Sepulvedana in April 2003. Avanza Group operates four business units: urban, suburban, long-distance and bus stations.

The group is headquartered in Madrid.

All of Avanza Group’s activities are in Spain, where the group is the second largest bus operator, the largest urban bus operator and the largest operator of bus stations. Urban transport revenues made up 44% of 2007 group sales with bus stations a further 6%.

The group is also the second largest long-distance and suburban transport operator in the country. These activities account for 26% and 24% respectively of 2007 revenues.

The company’s revenues are generated through the operation of a portfolio of 40 exclusive long-term regulated transport concessions, which provide excellent stability and visibility of earnings. These concessions are operated across a variety of different regions and are provided by a variety of state, regional and local authorities.

This both serves to increase the durability of cash flows and helps to mitigate any potential concessionspecific operating risks.

Bus travel lowers air pollution levels and reduces urban congestion.

The group expects bus travel to become increasingly popular as the public becomes more aware of the environmental impact of car journeys.

Avanza’s corporate responsibility strategy for the environment is based on the application of eco-efficient technologies such as bio-diesel or highly efficient engines. From 2008 the entire Avanza fleet will be mounted on Euro V engines, which are highly efficient and cut emissions of nitrogen oxide pollutants by 43%.

In addition, Avanza is ISO 14001 certified in some of its biggest concessions such as Zaragoza and Vigo.

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Portfolio Company Review BaltA

Balta is the leading European manufacturer of wall-to-wall carpets and area rugs

Based in Belgium and Turkey, Balta has evolved from a small family business to become a market leader in interior decoration.

BALTA GROUP Wakkensteenweg 2 8710 Sint Baafs Vijve Belgium www.baltagroup.com Investor:

Fund IV

Turnover (2007):

€517.9m

Number of Employees:

3,361

The group manufactures rugs, wall-towall carpets, laminate flooring and MDF boards for sale across Europe, Asia, the United States and the Middle East.

The group occupies strong market positions in its chosen segments and enjoys excellent relationships with a number of large retail customers.

Balta’s leading position in the carpets and rugs market provides stability while the group’s exposure to the fast-growing laminate flooring industry allows opportunity for expansion.

Management Marcus Billman - CEO DIDIER YSENBAERT - CFO Doughty Hanson Team Yann Duchesne Julian Huxtable Pascal Keutgens Mike Youlden Marco Mendes

In 2007 new product launches in the rugs division (shaggy rugs, super heat set rugs) were successful, and Balta enjoyed continued strong growth in the laminate division.

The group is anticipating continued good performance in 2008 across all divisions and is implementing lean manufacturing initiatives to drive additional performance improvement.

In 2008 the group will also see the full benefit of its new manufacturing capability in Turkey.

Balta has entered into a covenant with the Belgian authorities and committed itself to making all necessary efforts to minimise energy consumption and emissions. For instance, the heat generated in the laminate production process is regenerated into electricity through Balta’s own gas turbine.

Balta also has good contacts with local communities with a common aim to reduce noise and emission levels.

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Portfolio Company Review Hellermanntyton

HellermannTyton is a leading global manufacturer and distributor of high-performance and innovative cable management products

HellermannTyton Limited Stoner House London Road CrawleY, West Sussex RH10 8LJ UK www.hellermanntyton.com Investor:

Fund IV

Turnover (2007):

£264.7m

Number of Employees:

Management Stephen Salmon - CEO Tim Jones - CFO Doughty Hanson Team Steven Bone John Leahy Mike Youlden Alex Moss Marco Mendes Jon Higginson

2,866

Established in the UK in 1938, HellermannTyton (“HT”) is a leading global manufacturer and distributor of high-performance cable management products that add value to electrical and communications networks in a wide variety of applications and industries.

All of HT’s manufacturing sites operate ISO 14001 and ISO 9001 accredited environmental management systems, as do a number of the sales and distribution locations, with the remainder working towards achieving the accreditation.

The group is headquartered in the UK and has operations in 32 countries employing 2,866 people. HT has 11 production facilities in nine countries with an additional facility planned for development in Central and Eastern Europe in 2008. Each industry-leading production facility is located close to end customers to maximise presence and responsiveness.

HT’s environmental programmes are targeting the amount of waste sent to landfill by increasing the volume of recycling and using recycled materials in the manufacturing process.

Additionally, more than 90% of HT’s finished plastic components are suitable for material recycling.

HT’s two largest end markets are electrical (forecast to account for 40% of 2008 sales) and automotive (36%).

In addition, the company supplies into the telecoms (10%), electronics (8%) and mass transit markets (3%).

The company has a highly diversified customer base with in excess of 19,000 customers. No single customer accounts for more than 5% of sales, which increases the resilience of its earnings.

During 2007, HT engaged the Carbon Trust to conduct a review of its Manchester manufacturing facility.

The review highlighted a number of energy-saving opportunities, many of which are now being addressed.

HT is taking similar advice on the construction of new facilities in Central and Eastern Europe and Plymouth to ensure energy efficiency.

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Portfolio Company Review Impress

Impress is a global market leader in the consumer metal packaging industry

IMPRESS GROUP Zutphenseweg 51051 7418 AH Deventer The Netherlands www.impressgroup.com Investor: Turnover (2007):

Funds II, III €1.6bn

Number of Employees:

Management David Newlands – Chairman Francis Labbé – CEO John Geake – CFO Doughty Hanson Team Richard Hanson John Leahy John Gemmell

8,600

Impress can trace its roots back to a 19th-century tin can company but it was created in its current form in 1997. The group has been built up over more than 130 years and via a series of recent acquisitions throughout Europe, North America and Russia. The company has established a number of patents including, in 1949, the first aerosol can.

Impress now has a strong track record of delivering profit improvement and generating value through successfully integrating acquisitions and focusing on its core competencies of high valueadded metal packaging. In October 2007 Impress acquired the can-making interests of Amcor Limited in Australia and New Zealand.

Based in the Netherlands, Impress employs 8,600 people across 59 production facilities in 21 countries and five continents. The group is now capable of producing more than 10 billion cans a year for a wide range of consumer products from baby food to hair spray.

Impress seeks to create value throughout the supply chain, from the raw materials to a finished product which can meet customer demands with its innovative shaping, print and convenience features.

Impress commands strong market positions in each of the market segments that it competes in. The group is the world leader in the canned seafood market, European leader in cans for paints and coatings and cans for infant formula and nutritional powders. Impress is also the European and Australasian leader for aerosols and number two in those territories for cans for heat-processed food.

Impress’s key raw materials of tinplate steel and aluminium are 100% recyclable, making metal packaging one of the most sustainable packaging materials.

Safety in the workplace is measured constantly through individual accident reports. One of the company’s UK plants was recently awarded the prestigious “Sword of Honour” by the British Safety Council.

All Impress sites are ISO 9000 accredited or equivalent.

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Portfolio Company Review KP1

KP1 is a leader in the french market in prefabricated concrete products, focusing on floors and structural systems for the building industry

KP1 M.I.N. – Bâtiment D 135, Avenue Pierre Sémard 84 000 Avignon France www.kp1.fr Investor:

Fund IV

Turnover (2007):

€347.5m

Number of Employees:

Management Jean-François Trontin - CEO Patrice Léhman - CFO Doughty Hanson Team Yann Duchesne Mark Corbidge Pascal Keutgens Sacha Bielawski

1,556

Founded in 1959, KP1 in its current form was created in 1993 through the merger of two privately owned companies that were major players in the French prefabricated concrete industry.

Headquartered in France, KP1 operates 21 manufacturing facilities (19 in France, two in Poland), eight engineering offices (seven in France, one in Tunisia) and employs 1,556 people.

The company’s activities are structured in four main business units.

Three of these focus on the engineering, production and commercialisation of products for the housing industry.

These include products for the individual housing market, products for industrial buildings and bespoke products for residential and commercial markets.

The fourth business unit involves the group’s international activities, which are principally focused in Poland.

KP1 is a French market leader and has built up leadership positions in most sub-segments of the building industry.

This includes floor beams (32% market share), concrete beams (71% market share), pre-slabs (39% market share) and concrete industrial building frames (36% market share).

KP1 has made considerable investments in health and safety, leading to significant reduction in staff injuries and lost time on account of injury.

Concrete-related activities are not considered to be polluting activities and KP1’s management has always made the environment a key priority.

Through a unique know-how and significant investments in R&D, KP1 has been a pioneer in innovation in the prefabricated concrete industry.

For instance, KP1 has been at the forefront of developing a whole set of environmentally-friendly products that improve the insulation of houses and buildings, leading to significant reduction in energy waste.

KP1 also has its own internal division in charge of quality assessment and each factory has a laboratory to test product performance on a regular basis.

20 Doughty Hanson Annual Review 2007

Portfolio Company Review LM Glasfiber

LM Glasfiber is the world’s largest independent manufacturer of blades for wind turbines

LM GLASFIBER Rolles Møllevej 1 DK-6640 Lunderskov Denmark www.lmglasfiber.com Investor: Turnover (2007): Number of Employees:

Management Roland Sundén - CEO Jørgen Gade - CFO Doughty Hanson Team Jan Amethier Rikard Brattberger RICHARD HANSON John Leahy Jon Higginson

Fund III DKK 4,310m 5,873

Since 1978, LM has manufactured almost 100,000 blades for onshore and offshore wind turbines. These blades are capable of generating the power consumption of 25 million households.

In 2004 the group launched the world’s largest rotor blade, measuring 61.5m and capable of generating the equivalent power consumption of 5,000 households.

With production, sales and service facilities at 12 locations in eight countries including India, China, USA, Denmark and Spain, the company is the only independent blade manufacturer that operates on a global basis.

This global reach enables the group to minimise transport and logistics costs, shorten delivery time and reduce working capital requirements. The company’s size also provides valuable economies of scale in research and development, procurement and manufacturing. The group’s customer base includes nine of the top 10 wind turbine manufacturers.

Continued market growth and high order visibility led to a sales increase of over 20% in 2007. Earnings were impacted by large investments in significant operational improvement and capacity expansion programmes.

LM has continued to be successful in winning new business and will, in 2008, execute a significant capacity build-out in Europe, the US and Asia to meet strong customer demand in 2008 and beyond.

The company has implemented a corporate code of conduct and a set of corporate values to ensure high and uniform ethical standards for behaviour.

LM’s business contributes to global CO2 reductions. The wind power from LM Glasfiber blades supplied in 2007 can effectively replace 8.9m tons of CO2 — corresponding to the yearly emissions of approximately 2.8m UK citizens.

LM has placed a strong global emphasis on a safe and clean work environment through strong HSE focus, 5S and comprehensive operator training.

The firm also builds good community relations, as exemplified by the financing of a science block and teaching support at Dodahullur Primary and High School in Bangalore, India.

Doughty Hanson 21 Annual Review 2007

Portfolio Company Review Moeller

Moeller is one of Europe’s largest suppliers of low-voltage electrical distribution and automation components for industrial, commercial and residential use

MOELLER Hein-Moeller-Str. 7-11 53115 Bonn Germany www.moeller.net Investor:

Fund IV

Turnover (2007)*:

€959.9m

Number of Employees:

8,870

Management (Moeller Holding GmbH) Theo Kubat - CEO Jochen Fischer - CFO Dr Martin Schefter - GENERAL Manager Doughty Hanson Team Claus Felder Julian Huxtable Matthew Appleton Katie Beck John Leahy Marco Mendes

* APRIL YEAR END

Headquartered in Bonn, Moeller is one of the leading global suppliers of systems and components concerned with power distribution and automation in industrial, infrastructure and residential building applications.

The majority of Moeller’s products are safety critical and to a large extent fall under regulated standards. Key products include circuit breakers, command and control devices, motor starters and drives.

The company is a leading supplier across European markets, enjoying number one positions in Austria, Norway, Poland, the Czech Republic and Romania. The company is the third largest supplier to the German market and has a significant and growing presence in Asia.

Moeller conducts regular internal and external audits to monitor compliance with European and German environmental directives, laws and regulations. In addition, Moeller also adheres to a set of internal environmental guidelines that are regularly adjusted.

Moeller has a global sales network, which comprises 31 sales subsidiaries with over 350 sales offices in more than 90 countries. The business operates 15 production facilities worldwide, utilising a dual manufacturing strategy, with key components produced in highly automated production sites in Germany and Austria and assembly and final testing carried out at lower-cost locations in Eastern Europe, Asia and South America.

Moeller focuses on developing products which reduce the dissipation of electrical energy to a minimum, to enable customers to cut down consumption of energy and other resources. The group is continually looking to reduce its consumption of waste, energy and raw materials. Recent initiatives include the use of waste heat, internal recycling and cooling circuits at its production facilities.

Moeller operates through two divisions, Power Distribution (55% of revenues) and Motor Applications (45% of revenues).

Power Distribution manufactures products for the building and construction markets and Motor Applications manufactures products for the industrial sector.

22 Doughty Hanson Annual Review 2007

Portfolio Company Review Norit

Norit is a leading global supplier of purification technologies for the water and beverage marketS

Norit NV Hertmerweg 42c 7625 RH Zenderen The Netherlands www.norit.com Investor: Turnover (2007):

Fund V €361.2m

Number of Employees:

Management René Kuipers - CEO Bernard ten Doeschot - CFO Doughty Hanson Team Mark Corbidge Pascal Keutgens Alex Moss Marco Mendes

1,525

Founded in 1918, Norit is a leading supplier of components and technologies for water purification systems. Headquartered in the Netherlands, the company primarily focuses on the water and beverage markets but also supplies to the food, dairy, pharmaceutical, chemical and mining industries.

The company operates through a network of 12 production sites in seven countries, 19 sales offices and over 170 distributors covering more than 100 countries worldwide. Norit employs 1,525 people.

Although the company started out as a producer of activated carbon, a product that is widely used in the purification of air and water, it has since expanded into alternative purification systems and technologies.

Increasing water scarcity, regulation and the need to reduce water consumption in production processes underpins Norit’s future growth prospects and its ability to capitalise on its leading position in its chosen markets. The business enjoys a solid recurring revenue base and strong margins.

Norit’s products and systems are by their nature environmentally friendly, focused on the areas of sustainability, the environment and Health & Safety.

For example, Norit’s Brewery of the Future utilises at least 60% less water than a traditional brewery, which saves substantial amounts of energy.

All manufacturing sites operate ISO 14001 accredited environmental management systems or are working towards achieving the accreditation.

Energy consumption and waste are key performance indicators, which are tracked by the company. Many manufacturing sites have their own generators, utilising heat sources from within the plant to produce electricity.

Some locations are so efficient that surplus electricity is generated and delivered to the National Grid.

As some of Norit’s products and systems are used in the food, beverage and pharmaceutical industries, several manufacturing locations comply with the highest standards for suppliers to these industries, e.g. HACCP, GMP/GLP, and CEFIC Rules.

Doughty Hanson 23 Annual Review 2007

Portfolio Company Review Tumi

Tumi is a leading high-end luggage and business accessory brand. It designs and markets its products to professionals and brand-conscious frequent travellers

TUMI 1001 Durham Avenue South Plainfield New Jersey 07080 USA www.tumi.com Investor:

Fund IV

Turnover (2007): US$229m Number of Employees:

Management Laurence Franklin - CEO Mike Mardy - CFO Doughty Hanson Team Nigel Doughty Yann Duchesne Janka Vazanova Ed Williams Mike Youlden

800

Since 1975 Tumi has built up a reputation as a leading high-end travel and business accessories brand.

The company designs, markets and sells luggage, business cases and travel accessories in over 85 stand-alone Tumi stores as well as premier department and speciality stores and travel retail locations. The company also sells its products over the Internet and via business-to-business channels.

implemented a series of initiatives to improve its retail operations. The programmes cover staff recruitment and training processes as well as key performance indicator benchmarking across all stores.

Tumi’s products combine style, performance and functionality with exceptional quality and durability.

These are all characteristics that are valued by the brand-aware professionals and frequent travellers making up Tumi’s target market.

2007 saw a number of new product launches inspired by Tumi’s new Creative Director, David Chu. Under Chu, who joined the business in January 2007, a number of the company’s lines have been upgraded. The business has developed a new luxury category which includes a collection specifically targeting women.

The company is based in New Jersey and has 800 employees, compared to 552 at acquisition. Tumi outsources its manufacturing to over 15 third-party manufacturers in Asia, each supervised by an in-house sourcing team.

Tumi has enjoyed strong growth since its acquisition in 2004 and, in spite of the lacklustre retail environment in the US, continued to expand during 2007.

Tumi has established a third-party logistics function in Thailand to serve the growing Asia Pacific market and expanded its existing warehouse in Germany. Both facilities are performing well and provide ample headroom to accommodate the company’s future growth plans. Tumi has also

A refinancing of Tumi’s debt was completed on 1 March 2007, designed to replace the existing facility with less expensive and more flexible financing.

All of Tumi’s factories have signed a Code of Conduct and the company aims to become a member of the Fair Labor Association in 2008. Initial independent audits of key suppliers were completed in 2007 with suppliers notified of any issues and these issues are being addressed.

24 Doughty Hanson Annual Review 2007

Portfolio Company Review TV3

TV3 is the only privately owned terrestrial free-toair national commercial television channel in the Republic of Ireland

tvthree Television Network Limited Westgate Business Park Ballymount Dublin 24 Ireland

Launched in September 1998, TV3 is the only privately owned free-to-air national commercial television channel to have launched in the Republic of Ireland.

www.tv3.ie Investor:

Fund IV

Turnover (2007 - TV3 only): €62.4m Number of Employees (TV3 only):

Management David McRedmond - CEO Kathy Curran - CFO Doughty Hanson Team Steven Bone Katie Beck Marco Mendes

259

Today, it is the second most viewed channel in Ireland, after the governmentowned station RTE1, reaching 98% of the Irish television-owning population and commanding an audience share of 12.8%.

TV3 targets the important 15 – 44-yearold market and differentiates itself from non-terrestrial channels through an emphasis on Irish and homeproduced programming. Its breakfast show, Ireland AM, is the most popular breakfast programme in Ireland with c.35% of the audience.

In 2007, TV3 was the sole terrestrial broadcaster of the Rugby World Cup in the Republic of Ireland. Following the success of its coverage, in December 2007 TV3 secured the rights to key Saturday afternoon GAA Championship fixtures (Gaelic Games) for three seasons from summer 2008.

The majority of TV3’s revenues are derived from advertising during commercial breaks in programming, sponsorship and promotions, as well as certain programming and interactive applications. The company also handles advertising sales for other channels, including Living TV, Channel 6 and Bubble Hits.

Together with TV3’s management, Doughty Hanson has conducted a strategic review of the growth opportunities available to TV3. This review has identified new key business insights that are now at the core of TV3’s three-year business plan.

In 2007, Doughty Hanson, via the TV3 holding structure, acquired a 21.8% stake in sports pay-TV broadcaster Setanta. The company holds a portfolio of rights including the UK and Ireland rights to two of the six packages of live FA Premier League matches during the 2007-2010 seasons and the rights (shared with ITV) to the FA Cup matches and England international friendlies for 2008-2012. Setanta also has the rights to key boxing matches and the US PGA golf series. It is seen as a complementary and synergistic partner to TV3.

TV3 is a responsible terrestrial broadcaster that takes its public service responsibilities seriously. Over 25% of TV3’s output is sourced within the Irish market (30% in Q4 2007) and another 50% from the European market.

TV3 is currently reviewing its carbon footprint with a view to being carbon neutral in the short to medium term.

Doughty Hanson 25 Annual Review 2007

Portfolio Company Review Zobele

Zobele Group is the global leader in the manufacture of electric air freshener and insecticide devices

ZOBELE GROUP Via Fersina, 4 38100 Trento Italy www.zobele.com Investor:

Fund IV

Turnover (2007):

€257.2m

Number of Employees:

Management Enrico Zobele - Chairman Andrea Caserta - CEO edward farrell - CfO Doughty Hanson Team Alioscia Berto Pascal Keutgens Alessandro Baroni Mike Youlden Marco Mendes Jon Higginson

3,743

Zobele is the world’s leading manufacturer of electric air fresheners and domestic insecticide products.

Based in Italy, the company was founded in 1919 by Enrico Zobele Sr. During the early years, Zobele’s main activity was the manufacture of flypaper.

The group expanded its product lines over the second half of the 20th century to include mosquito products and plug-in vaporisers.

Air fresheners and insecticides now make up 69% and 28% of Zobele’s sales. The group also manufactures electrical plug-in dispensers of pharmaceutical formulations and other pet care and household cleaning products.

In addition to plants in Italy and Spain, Zobele has low-cost manufacturing operations in China, Mexico, India and Brazil. The group also has substantial research and development capabilities and works with its multinational and regional customers to develop and manufacture new products to be distributed worldwide under the customers’ brands.

Zobele has a strong track record of top-line growth and profitability, supported by solid relationships with its major customers, including Sara Lee, S.C. Johnson and Reckitt Benckiser.

Manufacturing platforms continue to offer opportunities for value enhancement through ongoing supply chain improvement initiatives.

Zobele and all of its subsidiaries have subscribed to an Ethical Code for dealing with suppliers, customers and employees, an Information Security Policy and ISO 14001 Environmental certification. The group also has a preventive approach to Health and Safety and is committed to a number of local community initiatives.

During the course of 2007, Doughty Hanson’s value enhancement work with management focused on initiatives to accelerate top-line growth, provide procurement savings and optimise the company’s manufacturing footprint. As a result, profit growth expectations for the next five years have significantly increased.

26 Doughty Hanson Annual Review 2007

our Real Estate business

Doughty Hanson 27 Annual Review 2007

Our real estate business provides investors with an opportunity to participate in real estate development across Europe

Value creation strategy Our team of experienced real estate professionals add value by improving the performance of real estate assets.

We have the creative energy to transform properties by focusing on a “ground-up” strategy, improving operations, refining configurations, updating systems and stabilising assets.

We then sell to core, long-term investors. We work closely with local development and operating partners to manage refurbishment and development programmes across Europe.

Our approach enables all stakeholders to share in the value we create. We build durable relationships with vendors, partners, purchasers and the communities in which we invest.

Whether we are reinvigorating the centres of towns and cities, working on ground-up developments or renovating a shopping centre, we focus on maximising value for our partners and improving the experience for the users of property and the wider community.

Real estate solutions programme Corporations, governments and other property owners and vendors increasingly look to us to provide solutions to their real estate needs.

Our approach combines real estate, financing and structuring expertise to generate innovative ideas and implement pioneering solutions.

Corporations may face challenges such as the need to relocate or expand with a technological upgrade. Alternatively they might need to divest a number of sites. Doughty Hanson Real Estate provides a solutions programme that enables companies to focus on their core business, generate cost savings and increase utility. This approach helps businesses strengthen their balance sheet and improve returns on equity by monetising low-yielding assets and reducing capital expenditure.

Urban regeneration Against a background of the need to renew Europe’s ageing city centres and waterfronts, Doughty Hanson Real Estate has built a development portfolio comprising mainly urban regeneration projects in cities such as Copenhagen, London, Milan and Munich.

28 Doughty Hanson Annual Review 2007

REAL ESTATE in 2007

During 2007 we invested in a number of new projects across europe. Our investments were well diversified across the office, industrial and residential sectors

Doughty Hanson 29 Annual Review 2007

Existing projects have been actively managed to create value through achieving planning permissions, developing and refurbishing properties, leasing space and driving rents through relationships and improvement of properties.

Examples of the work we carried out in 2007 include:

Blythe Valley Park, UK Doughty Hanson acquired a major business park comprising 14 existing buildings and a further 40 hectares with consent for future potential development. We worked with the local council to review the masterplan and instigated a flexible leasing programme to achieve a new headline rent 10% above existing levels.

Via Imbonati, Italy Doughty Hanson acquired a cleared site in the north of Milan with permission to develop 32,000 sqm of office space across three buildings, comprising the final phase of a new retail and office park. The development utilises our recent experience of developing this product type in this local market.

Designs and contracts for construction are being finalised in preparation for a start in 2008.

Via Lamarmora, Italy Via Lamarmora is a residential site in Brescia in northern Italy. Doughty Hanson achieved a conversion of planning permission from office use to higher value residential use and finalised designs for the new scheme.

The construction tender is underway with a view to starting work on site in 2008.

Aranco, Spain Doughty Hanson acquired a residential development business in Spain focusing on primary and first homes in central locations. We have undertaken a comprehensive restructuring of the organisation and operational procedures to transform a family-run business into a professional company, while progressing with the sale of non-strategic assets and continued delivery of projects under development.

30 Doughty Hanson Annual Review 2007

Case study: Kista Office Portfolio

In May 2006 Doughty Hanson acquired a portfolio of three high-quality properties in the Kista area outside Stockholm. The transaction was consistent with Doughty Hanson’s real estate investment strategy, offering a high-quality office portfolio with strong cash flows but with value-creation potential in a strategic office sub-market

Doughty Hanson 31 Annual Review 2007

The investment The transaction presented an attractive investment opportunity for the Real Estate fund due to: →→ High-quality office portfolio in the attractive sub-market of Kista, Sweden’s largest corporate centre →→ An improving office market that would provide potential for strong rental growth for good-quality space →→ Tenant base of over 50 tenants in varying sectors providing a diversified income stream →→ Strong cash flow combined with an attractive financing package providing a good cash-on-cash yield →→ Significant potential for value enhancement through light refurbishment and asset management initiatives

What happened?

Doughty Hanson’s business plan included lease renegotiations, refurbishments and cost-cutting initiatives. These asset management initiatives were successfully implemented much faster than had been anticipated. After 18 months the portfolio had been transformed into a product more suitable for a long-term real estate owner and Doughty Hanson decided to complete an early exit of the portfolio.

Key accomplishments during Doughty Hanson’s ownership include: →→ Lease renegotiations – Despite there being no leases expiring during the first 18 months of ownership, leases representing 38,000 sqm (a third of the portfolio) were renegotiated prior to lease expiry. This not only increased rental income but also significantly increased the unexpired lease term of the portfolio. The new rental levels helped determine new market rents for the overall portfolio →→ Improving income – The early lease renegotiations combined with cost-cutting initiatives led to a significant increase in net income

→→ Refurbishments – A refurbishment programme aimed at improving the entrances, common areas and creating more modern and flexible premises was implemented →→ Development opportunities – Doughty Hanson initiated potential development opportunities which would include building new offices on land owned by Doughty Hanson as well as offices and residential on adjoining land owned by the Municipality of Stockholm. These development opportunities would allow an investor to capitalise on the strong market fundamentals in Kista Exit With the successful early implementation of the business plan, the portfolio was sold to an institutional long-term owner.

In December 2007, the portfolio was sold for €315m to a property fund managed by DnB NOR, the largest Norwegian bank. The transaction generated a gross return of 85% IRR and 2.5x money invested.

32 Doughty Hanson Annual Review 2007

our Technology Ventures business

Doughty Hanson 33 Annual Review 2007

Doughty Hanson Technology Ventures targets early stage companies that develop sophisticated and proprietary technologies

Investing in Europe’s best entrepreneurs Doughty Hanson Technology Ventures backs committed entrepreneurs with ambitions to build world-class businesses addressing the fast-growing markets of the future. To date our fund has invested in a number of sectors such as micro-components, software and the Internet and clean energy technologies.

We look for companies that develop innovative and proprietary technologies with the potential to become market leaders. Typically, we lead investments in technology start-ups and continue our commitment and support throughout the entire life cycle of a successful business.

Using deep levels of experience to make the right decisions Our Technology Ventures team members have all personally built successful careers in blue-chip technology companies including Intel, Infineon and Lucent. This technical knowledge and operational experience has been used to back more than 100 businesses in both Europe and the United States.

With offices in London, Munich and Silicon Valley the Doughty Hanson Technology Ventures investment team combines more than 40 years venture capital experience with operational, technical and financial expertise.

Delivering much more than just capital Doughty Hanson Technology Ventures provides more than just financial support to entrepreneurs. We have built a reputation for delivering additional value to our management teams. These contributions include strategy development, customer acquisition, expansion planning and corporate governance best practice.

We also have a successful track record in assisting our portfolio companies to establish themselves in the United States, allowing them to accelerate their growth.

34 Doughty Hanson Annual Review 2007

technology ventures in 2007

the Technology Ventures business closed new investments in Plazes, MBA Polymers and AdaptiveMobile while successfully realising its investments in Tridion and Actionality

Doughty Hanson 35 Annual Review 2007

Over the year, a number of early-stage investments matured into self-sustaining, high-growth businesses while several others have positioned themselves for exceptional growth during 2008. Highlights include:

Odersun Odersun designs and manufactures thin-film solar modules using a proprietary technology. The company’s novel manufacturing process enables it to produce low-cost solar cells that can be assembled into modules of virtually any size or any power, in flexible or glass packaging. This unique ability allows Odersun to address multiple end markets including solar power plants and building-integrated solar applications.

In early 2007, Odersun opened its first manufacturing plant in Frankfurt (Oder), Germany. The company also raised €61m in financing, one of the largest European venture capital transactions of the year. The new capital will finance Odersun’s second factory, which will be six times the capacity of the first and located in the Brandenburg city of Fürstenwalde.

Handmade Mobile Handmade Mobile develops and operates innovative entertainment applications for consumers, the first of which is the highly popular Flirtomatic social networking service. Offering a seamless network across mobile phones and the Internet, Flirtomatic enables users to meet new people, flirt, chat and have fun. While the service is free to use, the company generates revenue from advertising by related brands and from value-added services it offers to users.

In the 18 months since concept launch, Handmade has established mobile dating and flirting as a successful entertainment category. Flirtomatic is now one of the leading mobile brands in the UK with over half a million passionate users and page impressions in excess of 130 million per month.

MBA Polymers MBA Polymers recovers high-value plastics from the residual waste streams left by metal recycling operations. The company’s proprietary process separates and recovers these high-value plastics from each other and from the residual waste of items such as household appliances, computer equipment and automobiles. MBA Polymers reduces incineration and landfill while producing cheaper plastics at a fraction of the energy used by traditional plastics factories.

In 2007, MBA Polymers began scaling its two existing plants, located in Austria and in China. In addition, the company negotiated a joint venture with European Metal Recycling Limited (EMR) of Warrington, England to build and operate a state-of-the-art plastics recycling facility in the UK. The new plant will process 60,000 tons of plastics-rich waste per year from automotive shredder residue.

AdaptiveMobile AdaptiveMobile provides protection for mobile phone customers against illegal or inappropriate content, viruses and malware, unsolicited messaging and unauthorised communications. It allows mobile operators to offer parental controls to protect minors and to extend corporate security policies through to mobile assets. Today, there are more than 500 mobile specific viruses and this number is growing rapidly.

Doughty Hanson led a US$14m financing in AdaptiveMobile in early 2007. Since the investment, the company has secured contracts with major mobile operators in Europe, South Africa, the USA and the Middle East.

36 Doughty Hanson Annual Review 2007

Case study: Tridion

Tridion was founded in Amsterdam in 1999 and has grown to claim the leading position in the European Web Content Management (WCM) software market. WCMÂ software is used by companies to create, store, manage and publish digital content for their websites and Internet applications

Doughty Hanson 37 Annual Review 2007

Tridion was identified following a detailed sector analysis and a direct approach was made by Doughty Hanson Technology Ventures to the management of the business.

The investment Tridion represented an attractive investment opportunity for our Technology Ventures fund. →→ As organisations established their international Internet presence, new software would be needed to design and support multi-lingual, multi-currency and multi-jurisdiction websites →→ Through one of the earliest implementations of XML technology, which allows content and formatting to be managed separately, Tridion had a significant competitive advantage over the other WCM software vendors, mostly coming from the US →→ The start-up had already demonstrated product appeal and an ability to deliver by winning a small but high-quality client base, in the financial services and transport sectors

What happened?

Doughty Hanson Technology Ventures invested US$5.1m in the early stages of the company’s growth and played a crucial role in the development of the business over the seven-year life of the investment.

→→ Financial controls – Doughty Hanson Technology Ventures supported the management team during the downturn in technology spending following the burst of the Internet bubble, preserving the company’s financial health

→→ Strategic development – Doughty Hanson Technology Ventures was actively involved in the definition of the commercial and technical strategy and supported management in sourcing and closing some of the larger deals

Exit Doughty Hanson Technology Ventures was proactive in designing, preparing and executing the sale of the company.

The fund actively promoted the business and the team worked with Tridion’s chief executive on the negotiations that culminated in a sale.

→→ Organisational development – Over the years, the fund used its industry contacts to assist the chief executive in the hiring of management in several European countries →→ Business development – Through its extensive contacts and connections, the Doughty Hanson Technology Ventures team introduced Tridion to a number of new customers and partners across Europe and supported the company in securing large international contracts →→ Corporate governance – The fund took an active role in designing and implementing appropriate corporate governance standards, chairing at times the main board and both the compensation and audit committees

With the financial support and management experience of Doughty Hanson Technology Ventures, Tridion established itself as the leading European Web Content Management software vendor. The company captured more than 300 enterprise clients and grew its annual revenues to more than $25m. In May 2007 SDL International plc acquired Tridion for $94m in cash.

38 Doughty Hanson Annual Review 2007

THE DOUGHTY HANSON CHARITABLE FOUNDATION

Doughty Hanson 39 Annual Review 2007

The Doughty Hanson Charitable Foundation was launched in 2000.

It is an independent charity run by a committee of our staff. It is focused on identifying charities and projects to be supported and oversees the disbursement of our funds to these selected groups

Since its launch, the Foundation has supported nearly 150 different charities throughout the UK, Europe and further afield.

The charities that have received our support have been selected by our employees, our investors, portfolio companies or from approaches made directly to Doughty Hanson.

The Foundation generally supports individuals or smaller organisations and prefers to identify specific projects where we can see how our contribution has been applied.

For instance, last year the Foundation supported an award to the Centre for Abused and Ill-Treated Children and Families in Crisis in Italy, which provides a secure environment for children to grow up safely. Funds were used specifically to improve the garden, creating a space for sporting and recreational activities, as well as a secure area for the children to meet their parents and relatives.

Increasingly the focus of the Foundation is to support charities in areas near to where Doughty Hanson completes its investments. Another example of a charity to receive financial support in 2007 is St Michael’s House, the largest provider of services to 1,400 Irish people with learning difficulties. It also runs The Open Training College providing nationally accredited training programmes, to degree level, for staff working in learning disability services throughout Ireland.

For further information about the Foundation or to make a suggestion for a grant, please contact info@doughtyhanson.com

40 Doughty Hanson Annual Review 2007

Contact information info@doughtyhanson.com

London 45 Pall Mall London SW1Y 5JG United Kingdom Tel +44 20 7663 9300

Frankfurt Platz der Einheit 2 D-60327 Frankfurt am Main Germany tel +49 69 97 12 02 0

Milan Via dei Bossi 4 Milan 20121 Italy tel +39 02 806 0681

Stockholm Biblioteksgatan 6-8 S-111 46 Stockholm Sweden tel +46 8 545 06030

Paris 60 Avenue Hoche 75008 Paris France tel +33 1 56 68 55 15

Luxembourg 28 Boulevard Royal L-2449 Luxembourg Luxembourg tel +352 26 27 56 1

Madrid C/Serrano, 26 28001 Madrid Spain tel +34 91 436 4420

Munich Sch채fflerhof Windenmacherstrasse 2 D-80333 Munich Germany tel +49 89 2444 060

This document is issued and distributed in the UK by Doughty Hanson & Co Managers Limited, which is authorised and regulated by the UK Financial Services Authority. While this information has been prepared in good faith, Doughty Hanson & Co Managers Limited makes no representation or warranty as to its accuracy, truth or completeness. The information herein is for information purposes only and does not constitute an offer to sell, or a solicitation of an offer to purchase, an interest in any private equity, real estate or technology ventures fund. If such offer or solicitation is to be made, it will only be made on the basis of final offering documents and not on the basis of this document or any oral statements or representations made in connection herewith. This document contains information concerning the past performance of various investments, but this should not be taken as an indication of the likely future performance of any investments.

Designed and produced by Bladonmore Design, London +44 (0)20 7631 1155

Doughty Hanson is a member of the EVCA and the BVCA.