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ANNUAL REPORT - ESG REPORT FINANCING & ASSISTING COMPANIES

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ANNUAL REPORT - ESG REPORT

FINANCING &ASSISTING

COMPANIES

ANNUAL REPORT EXERCICE 2019

4. Editorial

6. Siparex—A Leading Independent Private Equity Specialist

7. Levers of Growth

8. Key Business Figures in 2019

9. Salient Events in 2019

10. Dynamic Activity in 2019 Midmarket -

Midcap - Mezzanine -

Innovation - Entrepreneurs -

15. Covid-19: Good Practices

Siparex Group, founded 40 years ago, is one of France’s leading private equity investors. It operates in the SME and midmarket sectors and is a recognized player in the field of start-up financing under the XAnge banner.

It has €2 billion in assets under management in the midmarket, midcap, mezzanine, entrepreneurs, and innovation segments.

Siparex has offices in Paris, Lyon, Nantes, Lille, Strasbourg, and Toulouse. It also has a European presence, in Milan and Munich, and it has forged partnerships in Canada and North Africa.

ESG REPORT EXERCICE 2019

Siparex—A Responsible Investor .18

Key ESG Figures in 2019 .20

Good Practices .22- Environment

- Governance- Social

The Employer Image: Promoting Social Progress .28

ANNUAL REPORT EXERCICE 2019

4. Editorial

6. Siparex—A Leading Independent Private Equity Specialist

7. Levers of Growth

8. Key Business Figures in 2019

9. Salient Events in 2019

10. Dynamic Activity in 2019 Midmarket -

Midcap - Mezzanine -

Innovation - Entrepreneurs -

15. Covid-19: Good Practices

3

Editorial

BERTRAND RAMBAUD, CHAIRMAN OF SIPAREX GROUP

2019 was a year of consolidation for the Siparex Group, which continued to expand in its five business lines: midmarket, midcap, mezzanine, entrepreneurs, and innovation financing. Investment volume was high in this final year of the decade thanks to our strong position in deals, disposals, and fund raisings.

In addition to providing equity, the Siparex Group seeks to differentiate itself in terms of the quality of assistance it offers its portfolio companies. Accordingly, in 2019 the Group added two new staff members to the Operating Team it created in 2018 for the sole purpose of providing investees with operational assistance. The role played by the Operating Team has proven to be even more crucial in the context of the Covid-19 crisis that erupted just months later.

The sudden, violent crisis that developed into a worldwide pandemic has weakened all economic agents. Here, I would like to pay tribute to Siparex’s investee companies, whose managers displayed cool-headed reactivity and remarkable adaptability to the circumstances. With support from our Operating Team, which was highly present at this decisive moment, they undertook the emergency measures required and, in so doing, expanded upon their economic model.

This crisis has proven to be a catalyst: In the space of mere weeks, it imposed model changes that would otherwise have taken years to evolve. The digital transformation is one of them, entailing increasing recourse to remote work and new modes of organization. Another is reshoring, which will help shorten production and supply chains for improved response time and flexibility.

Above all, these historic events have demonstrated the incontrovertible value of an ESG approach to corporate

management. Environmental, social, and governance criteria now take precedence because they concern such major issues as risk management, job protection, employee protection, and robust governance, all of which are highly instrumental in ensuring performance and flexibility.

Lastly, this crisis serves as a reminder that companies form an integral part of our societies, and that they contribute not only to creating economic prosperity but also to reducing inequality. This reasoning prompted Siparex to create its

own Foundation in 2019, dedicated to easing the way for vulnerable members of society to move back into the working world by helping them gain access to entrepreneurship. This fundamental project is wholly in keeping with the Group’s ethical values. We are pleased to have taken this step and made a contribution to promoting fairness and solidarity.

Siparex Group stands out in terms of the quality

of assistance it offers its portfolio companies

In 2019 Siparex created its own Foundation dedicated to easing vulnerable members

of society back into the working world by helping

them gain access to entrepreneurship.

ANNUAL REPORT - ESG 2019 4

Bertrand RambaudChairman of the Siparex Group

Pierre Bordeaux MontrieuxManaging Partner, Chairman

of the Midcap Management Board

Richard DalaudManaging Partner, Chairman of the

Mezzanine Management Board

Nicolas EschermannManaging Partner, Investor

relations and business development

Cyril FromagerManaging Partner, Chairman of the Management Board

of Rhône-Alpes PME Gestion

Florent LauzetManaging Partner, Chairman

of the Midmarket Management Board

Marie-Clothilde VialManaging Partner, Legal

affairs and human resources

Cyril BertrandManaging Partner, XAnge

The Group Executive Committee brings together the managing

partners who represent the Group’s business lines.

> GOUVERNANCESiparex, an independent group headed by Bertrand Rambaud, is majority-owned by the main managing partners, who provide expertise, alongside Siparex Associés, whose shareholders are the main shareholders of the Group’s funds, ensuring trust.

SIPAREX GROUP

Michel RollierChairman of Siparex Associés, Chairman of the Supervisory

Board, former Manager of Michelin

Siparex Associés, headed by its chairman, Michel Rollier, and its vice-chairman, Cyril Balas, ensures adherence to the Group’s principles and values. Its shareholders include leading family-owned corporations (such as Mérieux, Michelin, Norgefi, Bianco Family, and SEB), French institutional investors (Apicil, Bpifrance, Caisse d’Epargne and Banque Populaire, Crédit Agricole-Prédica, La Française, Groupama Rhône-Alpes Auvergne, Groupe La Poste, and Malakoff Médéric), and international investors (Mouvement Desjardins).

MANAGING PARTNERS

PROVIDES EXPERTISE

SIPAREX ASSOCIÉS

ENSURES TRUST

51% 49%

Editorial

BERTRAND RAMBAUD, CHAIRMAN OF SIPAREX GROUP

Cyril BalasVice-Chairman

of Siparex Associés

54

An independent group for over 40 years, with entrepreneurship deeply ingrained in its mentality, Siparex operates in five sectors simultaneously, each specializing in one facet of financing for corporate growth and transformation, from innovative early-stage firms to midmarket companies.

> INVESTORS & GROWTH, A TEAM DEVOTED TO INVESTOR RELATIONS:

Investors & Growth is Siparex’s special go-to unit for institutions and family offices that have invested in our funds. The 12-member team manages each client on the basis of a long-term relationship, providing high-quality financial and nonfinancial information quickly and transparently. It is also the access point for all opportunities offered by the Group and its ecosystem.

Our institutional innovation funds (FCPI), like the most recent Midcap and Mezzanine funds, have become increasingly popular among private investors who have an entrepreneurial streak and take a long-term approach to investing.

The group has a strong territorial presence thanks to its eight offices in France and in Europe (Milan, Munich), as well as special access to the markets of Africa and North America thanks to its long-standing partnerships in those regions.

Focusing on startups in the digital, deeptech, and impact sectors

XAnge - €400 million

Expansion and buyouts of SMEs in France’s regions

Entrepreneurs - €400 million

Assisting SMEs with their organization, cross-border business, acquisitions, and the digital transformation

MidCap - €400 million

Working with growing midmarket companies that have an innovative business model and helping them expand in France and abroad

Midmarket - €500 million

Working alongside non-Group financial sponsors, sponsorless deals, mezzanine for growth

Mezzanine - €250 million

€2 billion in assets under management

Early-stage innovative companies

Small SMEs

Large SMEs

Mid-sized companies

SIPAREX, AN INDEPENDENT INVESTOR AND A LEADING PRIVATE EQUITY SPECIALIST

ANNUAL REPORT - ESG 2019 6

LEVERS OF GROWTH

OPERATING TEAM

Siparex, a trusted partner to management, provides investee CEOs with several types of assistance to tackle their strategic and operational issues.

Accelerating the digital transformation

Encouraging acquisitions

Promoting cross-border expansion

Impact and ESG

Investees can draw on six fields of expertise

Siparex shares its operational expertise in digital transformation with investee company managers. Its teams help analyze and anticipate changes in business models and organizations in preparation for the emergence of disruptive players, and it helps them complete their transformation process.

Siparex has expertise and a proven track record in assisting managers in identifying opportunities and carrying out their acquisition strategy.

Whether they wish to undertake acquisitions, seek out business partners, or open subsidiaries, Siparex helps investees accelerate their cross-border expansion with help from its network of teams based in Europe, Africa, and North America.

Siparex has an ethical and committed vision of the investment business. Our commitment consists in supporting all portfolio companies in their drive for improvement. More and more companies, recognizing the significance of environmental, social, and governance (ESG, or impact) criteria as part of their quality assurance procedures, are integrating these factors into their business model. Together, financial and nonfinancial performance contribute to value creation.

• Transformation and digitization

• RSE-Impact and HR

• Business development and communication

• Build-ups and international expansion

• Corporate governance and organization

• Performance optimization

By creating the Operating Team, in 2018, Siparex demonstrated its drive to work with investee companies to achieve positive, sustainable growth and to help them navigate increasingly rapid changes in market behavior. This team provides operational assistance to accelerate the growth of the startups, intermediate-sized, and midmarket companies in our portfolio so that they can reach the goals we set with them at the time of our investment.

Thanks to its own dedicated resources, the Siparex Operating Team is equipped to address a broad range of issues including digital transformation, corporate governance, employer image, acquisitions, and cross-border expansion. Relying on the Siparex Group’s in-house resources, it can also offer assistance in the areas of social and environmental responsibility, communication, and debt structuring.

Nicolas RequillartChief Operating Partner

and Digital Officer

Pauline PaquetStartup Success

Manager

Stéphanie FortierInternational Performance

Manager

A Dedicated Team for Digital Transformation, Business Development, and International Expansion

76

Les 5 lignes de métiers du Groupe, ETI, Midcap, Mezzanine, Entrepreneurs et Innovation ont réalisé un niveau d’activité soutenu en 2019.

KEY BUSINESS FIGURES IN 2019BUOYANT ACTIVITY IN 2019

sharp increase in the average exit multiple from the equity business

completed by companies in the Midmarket, Midcap,

and Mezzanine portfolios in 2019

involving cross-border expansion over five years

… and rising performance

gross average IRR on exits from the Mezzanine portfolio

X2.8

21 BUILDUPS 67 OPERATIONS

20%

9 OFFICES IN FRANCE AND ABROAD

invested, including €73 million co-invested by the LPs

exits raised

€306 MILLION €210 MILLION €250 MILLION

> 118 STAFF MEMBERS

> 40 YEARSIN BUSINESS

> 1,000COMPANIES FINANCED

SINCE INCEPTION

ANNUAL REPORT - ESG 2019 8

SALIENT EVENTS IN 2019

Siparex and Medef Organize the Digital Transformation Awards

On the occasion of its fifth annual Digital University at Station F, Medef has issued these awards for the most impressive digital transformation corporate success stories of 2019 and for exemplary initiatives that have enabled microenterprises, SMEs, and midmarket companies to adapt or transform their business model, their mode of production, their internal organization, or their customer/supplier relations thanks to the addition of a digital solution or department.

Two Siparex investees were among the prizewinners: Le Temps des Cerises (jean manufacturer, recipient of the Customer Prize) and CCLD Recrutement (Talent Prize).

Meeting with Canada’s Prime Minister

At the invitation of Isabelle Hudon, Canada’s ambassador to France, Bertrand Rambaud, Chairman of Siparex, and Claude Delâge, Senior Investment Manager at Desjardins Capital, met with Justin Trudeau, Prime Minister of Canada, on the occasion of a roundtable bringing together “couples” of French and Canadian companies that work together. This event offered a fine opportunity to evoke the Transatlantic Fund, managed by Siparex and Desjardins Capital, which invests in midmarket companies and SMEs seeking to establish a foothold on the opposite shore of the Atlantic.

Sintex NP Receives Help from Siparex in its Spinoff from Sintex Plastics Technology of India

Siparex led a pool that invested €40 million via the ETI 4 fund to complete the acquisition of this Lyon-based company and become its majority shareholder. The management team led by Eric Pisani also took part in the deal.

Following its 2007 acquisition by Sintex Plastics Technology of India, the polymer and composite processor Sintex NP has become a French company once again. It has 2,800 employees at manufacturing sites in France, Germany, Eastern Europe, Tunisia, and Morocco. Most of its business is conducted outside France. With help from Siparex, the company—renamed Clayens NP in March 2020—will pursue its acquisitions with an emphasis on establishing a presence in the Americas.

30% increase in international investors

Final Closing of the Fund Siparex Intermezzo 2 with Nearly €200 Million in Capital Commitments

At year-end 2019 this fund had committed capital of €180 million, with a target of €200 million, which is twice the size of the first-generation fund.

This new investment vehicle will pursue the operations of its predecessor fund, focusing on sponsorless growth and buyout deals particularly among SMEs and midmarket companies, but now with a more international outlook.Intermezzo 2 will be able to make up to 20% of its investments outside France, relying on support from the Siparex Group’s support teams in Germany and Italy. This new-generation fund will make unit investments ranging from €3 million to €15 million.

JUNE 2019 JUNE 2019

JULY 2019

DECEMBER 2019

98

MIDMARKET GROWTH COMPANIES Unit investments: from €20 million to €50 million and participation

in financing rounds of up to €100 million

Sales: €275 million

INVESTMENTS

EXITS

MIDMARKET BUSINESS IN 2019

Larger unit investments and stakes

Revenues: €650 million

Sales: €67 million

Siparex Midmarket had strong exit activity. ETI 3 made two new exits, returning 60% of its capital commitments to investors, and generating an aggregate gross IRR of 22% as of year-end 2019. Exits included:

Siparex Midmarket made three new primary investments, two of which involved majority stakes, for a total of €155 million, including €73 million co-invested by the Siparex Group’s limited partners. The ETI 4 fund is now 80% invested. Its deals include:

MIDMARKET A team of 14 investment professionals working under the responsibility of Florent Lauzet and three managing partners: Olivier Golder, Guillaume Rebaudet, and Alexandre Tremblin

Siparex became the majority shareholder of Clayens NP, Europe’s leading polymer and composite processor and manufacturer of precision metal components.

Backed by the support and resources of its financial investors, Clayens will accelerate its growth, particularly by means of acquisitions, in order to expand its international presence, notably in North America, and to consolidate its customer portfolio and technological expertise.

Siparex Midmarket acquired a majority interest in Jacky Perrenot, one of France’s leading road freight haulers.

With this investment, Siparex will be able to help the company with acquisitions and cross-border expansion. It is also pursuing a major effort to convert its fleet from fossil fuels to more ecological energy sources.

Sateco is the market leader for designing, manufacturing, and commercializing metal coffering equipment for concrete.

Siparex invested in this public works company that was undergoing steady growth. Over four years, in addition to considerable in-house expansion, Sateco strengthened its international presence, boosting its sales from €37 million to €67 million.

ANNUAL REPORT - ESG 2019 10

SMEs Unit investments: €3 million to €15 million and participation in financing

rounds of up to €30 million

MIDCAP BUSINESS IN 2019

A high volume of exits and returns

Sales: €67 million

Reveues: €400 million

FEEDAXESS/L2G

EXITSFor the second consecutive year, Siparex Midcap had a high volume of exits €55 million with a multiple on disposals of 3.1x, including:

INVESTMENTS By year-end 2019 the fund Siparex Midcap 3 had eight investments in its portfolio, including two in Italy. Five of these investments were for majority stakes, including:

Sales: €40 million

MIDCAPA team of 14 investment professionals working under the responsibility of Florent Lauzet and three managing partners: Olivier Golder, Guillaume Rebaudet, and Alexandre Tremblin

A team of 14 investment professionals working under the responsibility of Pierre Bordeaux Montrieux and three managing partners: Romain Boisson de Chazournes, Augustin de Jerphanion, and Henri Dumas

Rondot is one of the world’s leading niche manufacturers of mechanical components and electronic equipment for productivity enhancements in hollow glass production lines.

Siparex Midcap acquired a majority shareholding interest in this group to help it negotiate a growth phase with the objective of developing new product expertise, expanding its geographic presence, and broadening its customer base. This company is also considering a certain number of possible acquisitions.

Mauffrey ships bulk freight and hauls packaged merchandise for the environmental, construction, and agricultural industries.

Over the six-year investment period, Mauffrey doubled in size thanks to a combination of in-house growth and acquisitions. Today, Mauffrey has over 3,000 employees. It generated €400 million in revenues in 2018.

Feedaxess manages a number of brands, including L2G-BM Productions, that design, manufacture, and distribute commercial refrigeration equipment and professional kitchens.

This company’s strong growth accelerated when Siparex first invested in 2015. Since then, it has completed three acquisitions, bringing consolidated sales to €67 million in 2018, versus €17 million for L2G alone in 2014.

1110

LARGE SMEs AND SMALL MIDMARKET COMPANIES Unit investments: €2 million to €15 million

Sales: €120 million

INVESTMENTS

EXITS

MEZZANINE BUSINESS IN 2019

Sales: €50 million

Sales: €40 million

The fund Siparex Intermezzo 1 achieved high performance on disposals. Half of the portfolio was sold as of year-end 2019, generating a gross average IRR of 20%. In 2019 it made three new exits from majority positions, one of which was a trade sale. Exits included:

Mezzanine investment was very active in 2019, featuring five sponsorless deals, including:

Siparex Intermezzo invested in this company, which is a spinoff of the century-old group Valéo.

Vignal Lighting Group designs, manufactures, and commercializes high-end road lighting and on-/off-road vehicle signaling products and systems. It plans to continue making acquisitions and accelerating its expansion into Asian markets.

Siparex Intermezzo structured a sponsorless deal for Cevino Glass and provided all of the mezzanine and debt financing, for a total of €12.5 million.

The financial operation enabled this leading manufac-turer and installer of glass products both to purchase a company with complementary expertise in glass bom-bing and to expand its geographic coverage.

Steliau Technology is an engineering group and a distributor of electronic components.

It grew significantly in the time that Siparex Intermezzo was invested, having multiplied its sales by a factor of four in four years, to over €40 million, thanks largely to an acquisition.

MEZZANINE The mezzanine team comprises five investment professionals working under the leadership of Richard Dalaud. The other team members are Philippe Dutheil, Clément Barbier, Aurore Sterling, and Damien Boca

Significant gains on exits

ANNUAL REPORT - ESG 2019 12

EARLY-STAGE INNOVATIVE COMPANIES Unit investments: €0.5 million to €10 million - Sectors: Digital, Deep Tech, Impact

EXITS

INNOVATION INVESTING IN 2019

A dynamic year in investments and exits

XAnge had significant exit volume (€55 million), with remarkable returns on some disposals, such as Odoo (>10x):

INVESTMENTS XAnge invested nearly €50 million on six new deals and several follow-on investments, including:

A team of 10 investment professionals, including five partners: Cyril Bertrand, Andreas Gall, Guillaume Meulle, Nicolas Rose, and Bernhard Schmid

Through its team based in Munich, XAnge took part in the fundraising for Apiax, a Swiss startup in the field of RegTech (financial regulation technology).

Apiax transforms written regulations into machine-readable compliance rules, thus giving clients easy access to regulatory information and the ability to ensure compliance as early as the design phase. This investment will help Apiax accelerate its global expansion and strengthen its interdisciplinary teams of legal experts.

XAnge led the fundraising for the Bordeaux-based startup TreeFrog Therapeutics, which seeks to make a decisive contribution to stem cell treatments.

Its program covers a broad range of therapeutic indi-cations, such as Huntington and Parkinson’s disease, cardiac failure, and diabetes.

XAnge made a partial exit from Odoo, in which it had invested in 2014, contributing significantly to the performance of the fund XAnge Capital 2.

With more than 4.5 million users worldwide, Odoo has the largest installed base of corporate management software in the world. The group employs over 750 staff members at its offices in the United States, Belgium, Luxembourg, India, Hong Kong, and Dubai. Odoo increased its sales tenfold over the five-year investment period.

XANGE

1312

FAST-GROWING SMALL REGIONAL SMEs Unit investments: €1 million to €4 million

Sales: €20 million

INVESTMENTS

EXITS

BUSINESS IN THE ENTREPRENEURS SEGMENT IN 2019

Exits were double the previous amount

Revenues: €30 million

Revenues: €7 million

The Entrepreneurs activity doubled its exits in 2019, to €40 million, generating a multiple of 2.2 on disposals. Exits included:

Investments, totaling nearly €50 million, were up 24% over 2018. Siparex Entrepreneurs provided financing for companies including:

A 12-member team of investment professionals working closely with growth SMEs under the responsibility of two partners: Cyril Fromager and Damien Fulchiron

Handi-Pharm distributes equipment for at-home patient care to pharmacies in western France.

After an initial investment in 2013, Siparex Entrepreneurs continued to assist this company following a noteworthy period of growth marked by a doubling of sales and the extension of its network of branches in western France thanks to an acquisition in Brittany. The group will expand its coverage in France, mainly in southwestern France, thanks to additional acquisitions.

On the occasion of the first investment by outside entities, Siparex Entrepreneurs acquired a minority interest in Groupe Optim, which creates business space installations.

This group, which has expanded considerably in recent years, plans to accelerate the development of a new service offering in the field of climatic engineering. Support from Siparex Entrepreneurs should also enable Optim to take advantage of acquisition opportunities.

Siparex Entrepreneurs sold its investment in Emresa, a Luxembourg company providing loyalty services and advantages to employees.

Since the time Siparex invested, in 2015, Emresa has successfully changed its business model and undergone strong growth thanks to its digital transformation, largely supported by Siparex with help from its Chief Digital Officer.

ENTREPRENEURS

ANNUAL REPORT - ESG 2019 14

ARMOR

Armor works with the University of Nantes to supply protective visors.

Armor, the University of Nantes, and the Nantes University Medical Center jointly designed protective visors for first responders. The initial units were distributed to medical staff at the Nantes University Medical Center and in the Paris hospital system.

PLURIMA

Plurima transports medical equipment to hospitals.

This Italian company, specializing in document management and archiving, particularly for the medical sector and public administrations, provided the logistics for distributing tests, masks, and respiratory devices to hospitals throughout its home region of Umbria.

LABELLEMONTAGNE

Labellemontagne distributes protective equipment.

Despite suffering from the direct economic impact of a shortened winter sport season, Labellemontagne lent its protective gear and all other useful equipment, including vehicles, to healthcare providers. It transported masks, gloves, hand sanitizer, and oxygen bottles from ski resorts to medical establishments.

MINAKEM

Minakem donated 24 tonnes of hand sanitizer and 1,600 medical masks to hospitals in the Hauts-de-France region and Belgium.

VALENTIN TRAITEUR

Valentin Traiteur donated 2,000 meals and 1,200 protective smocks to the Roanne Hospital Center.

This vendor of fresh delicatessen products ensured home delivery of baskets of fresh food to customers in the health care sector and distributed individually packaged food products to medical personnel.

LABORATOIRE PROVENDI

Laboratoire Provendi reorganized and increased its production of liquid soaps to satisfy the sharp increase in demand.

ROYAL MER

Knitwear manufacturer Royal Mer produced certified protective masks for personnel whose jobs put them in direct contact with the general public.

Starting in March 2020, the sudden onset of the major worldwide health crisis seriously affected economic activity. Siparex Group investee companies felt the effects of this disturbance, as sudden business surges or shrinkages were difficult to manage. Several of these companies took steps to produce products or services that were useful in the fight to control the pandemic. Siparex salutes their commitment.

COVID-19: GOOD PRACTICES SIPAREX INVESTEES DEMONSTRATE SOLIDARITY

BUSINESS IN THE ENTREPRENEURS SEGMENT IN 2019

1514

ANNUAL REPORT - ESG 2019 16

CREATING NON-FINANCIAL VALUE

1716

> SIPAREX’S VALUES • TOTAL INDEPENDENCE

• RIGOROUS ETHICS in the investment process and in investor relations

• CLOSE relations with investee companies and their managers

• RESPECT for investee companies’ culture and identity

• STRESSING COMPETITIVE ADVANTAGE over financial value creation

• SERVING AS AN ACTIVE INVESTOR, without a hands-on approach

• PROMOTING A STRONG CULTURE OF NETWORKING

> FRANCE INVEST’S CHARTER IN FAVOR OF GENDER EQUALITY

As a signatory, Siparex agrees to comply with the charter’s 30 commitments to promote gender equality in the private equity industry and at its investee companies

Since 1977, Siparex has understood that nonfinancial criteria are factors of wealth creation, and consequently it has placed responsibility and action at the center of its investment approach. By taking pertinent social, environmental, and governance criteria into account, Siparex encourages the creation of competitive value alongside financial value.

In adopting this responsible approach, Siparex became one of the precursors of socially responsible investing in its field. It made a tangible commitment in 2013, when it joined the United Nations Principles for Responsible Investment (PRI) network, and again in 2014, when it signed the private equity code of ethics and France Invest’s charter in favor of gender equality. This commitment to corporate ethics is an important factor behind the attractiveness of the Siparex brand.

SIPAREX—A RESPONSIBLE INVESTOR

The PRI initiative, sponsored by the UN, is an international cooperative network of over 3,000 signatories with the aim of applying six fundamental principles for responsible investing. Its goal is to determine the relationship between investments and environmental, social, and governance issues, and to help signatories incorporate these matters into their investment and shareholder-related decisions.

> PRIVATE EQUITY CODE OF ETHICS SIGNATORIES, INCLUDING SIPAREX, AGREE TO:• SUPPORT innovation and R&D

• Provide ASSISTANCE to unlisted SMEs

• PROMOTE shared value creation

• IMPLEMENT good practices in terms of the protection of ecosystems and biodiversity

• STRESS long-term corporate growth strategies so that companies take the issues of natural resource dependency, energy consumption, and waste production into account

• PROMOTE investment transparency

ANNUAL REPORT - ESG 2019 18

Siparex Group has strengthened its commitment to be a responsible investor by creating the Siparex Foundation to enable people who are vulnerable or facing difficulties to (re)take their place as active members of society. The Foundation will make long-term financial contributions to associations promoting access to entrepreneurship through training, social or occupational reintegration, personal assistance, and assistance in creating or acquiring a business.

The Siparex Foundation, hosted by Fondation Entreprendre, has its own governance organization including a strategy committee responsible for validating the action plan and related projects. Its unique, virtuous funding comes from donations or allocations of performance bonuses from the funds managed by the various Siparex business lines, as well as rights to dividends held by the Group’s management companies. Each of the Group’s staff members will also be given an opportunity to make matching donations on a totally confidential basis.

> THE SIPAREX FOUNDATION—A NEW TOOL FOR PROMOTING SOCIETAL ADVANCEMENT

> ESG GOVERNANCESiparex has made the strategic decision to decentralize its ESG governance in order to ensure that all of its teams take part in this approach to progress. Thanks to 10 correspondents within the Group and at investee companies, its actions are coordinated to make ESG a central and federative lever for change.

A TEAM TO MANAGE AND COORDINATE ESG ACTIONS:At the Group level: Priscille Clément Simon Ruchaud

Among the investment teams:Midmarket: Olivier Golder

Midcap:Romain Boisson de Chazournes

Mezzanine:Clément Barbier

Entrepreneurs and Small Caps: Eric Le Hir Xavier Chappelon Julie Gadois Marlène Rey

XAnge : Lionel Bergeron

SIPAREX IN 2019

> PATRONAGE, PARTNERSHIPSCognizant of its role in society and its involvement at the local level, Siparex offers its support to committed associations, whether in favor of social and occupational integration, entrepreneurship, or cultural actions. Siparex has partnered with the following associations:

“I am strongly in favor of helping and supporting entrepreneurs, and am therefore pleased

that this foundation can finance public-interest projects promoting access to entrepreneurship. We have chosen Fondation Entreprendre as our host organization based on our long-standing

relations. It is a pleasure for me to undertake this new effort, which will enhance the impact of our actions in assisting entrepreneurs.

Bertrand Rambaud, Chairman of Siparex .

97% EMPLOYEES ON

PERMANENT CONTRACTS

only 1.5%ABSENTEEISM

20% WOMEN

IN MANAGEMENT POSITIONS

40% WOMEN

118 EMPLOYEES, including 69 inVESTMEnT PRoFESSionAlS

1918

CARBON FOOTPRINT OF THE SIPAREX PORTFOLIO: 66,659 TONNES OF CO2 EQUIVALENTOR THE EQUIVALENT OF 15 GRAMS OF CO2 EMISSIONS PER €1 OF SALES

The carbon footprint of 65 Siparex portfolio companies, measured by the firm Sirsa, includes the estimate of direct (scope 1) and indirect (scope 2) greenhouse gas emissions based on their declared energy consumption*. Scope 1 emissions come from sources that the company owns or controls (including fixed or mobile sources of combustion, non-combustion industrial processes, emissions from ruminants, biogas from subsurface waste containment, leaks of refrigerants, use of nitrogen-based fertilizers, and biomass). Indirect emissions are related to the generation of electricity, heat, or steam that a company acquires for its activities. This carbon footprint does not include scope 3 (indirect emissions related to the complete value chain).

* Some investees provided only partial details concerning their energy consumption (only electricity, for example, or for a restricted perimeter).

As a committed, responsible investor since its inception, Siparex views ESG as a major component in value creation. Every year its 214 portfolio companies gather nonfinancial information using the Reporting 21 tool, allowing them to analyze their environmental, social, and governance performance. This numerical approach enables them to implement and monitor their progress in areas ranging from shrinking their carbon footprint and diversifying their management bodies to creating shared value.A total of 150 investees prepared nonfinancial reporting for 2019. The figures presented in this report reflect the data available for all or part of those respondents.

KEY ESG FIGURES IN 2019

has conducted a carbon survey over the past four years

1 MIDCAP OUT OF 3

93%of respondents monitor one or more factors of their energy consumption

35%of respondents (excluding XAnge investees) have an environmental management system (EMS) covering all or part of the areas they occupy.The EMS designates a company’s management methods aimed at measuring and minimizing the environmental impact of its activities.

ENVIRONMENT

ANNUAL REPORT - ESG 2019 20

women in the workplace

women holding management positions

jobs created in 2019 (excluding the impact of acquisitions)

of employees are shareholders of their company, up from 8% in 2018

staff members at 150 companies in 2019 48,894 46%

20%1,477 12%

38%of respondents have at least one independent board member

of respondents have at least one quality accreditation or certification

69%

of respondents monitor their suppliers’ RSE

41% of respondents have a designated RSE manager53%of respondents ensure the security of their information systems 68%

50% OF OUR INVESTEES had a code of ethics or an RSE charter in 2019. This type of document establishes a basis for formalizing the values and principles of action that exceed regulatory standards in the area of social, environmental, or ethical practices.

50% OF MIDCAPs ARE DISTRIBUTING SHAREHOLDER VALUE The creation of shared value is a concept of historical importance at Siparex. By means of employee stock ownership or managed savings plans, midcaps enable their employees to benefit financially from their company’s success.

GOVERNANCE

SOCIAL

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At a time of mounting climate-related risks and growing pressure on resources around the world, companies are feeling an increasingly urgent need to shrink their ecological footprint.

COMPTE.R

Compte.R is France’s leading manufacturer of biomass boilers for public entities and industrial corporations. With an installed fleet of 2,000 boilers in France, the group has a market share of 40%.

Puy-de-Dôme

134 employees

ENERGY PERFORMANCE:Nowak, which holds ISO 14001 certification for all of its sites, is committed to reducing the environmental impact of its entire production chain, starting with actions to minimize energy consumption. By installing energy-saving kilns, Nowak has halved the gas consumption of its medical production unit. It is also actively seeking recycling and reuse solutions for its process waste water, which is its most voluminous and costly byproduct.

RESPONSIBLE PURCHASING: Nowak has a responsible purchasing charter and imposes RSE criteria on its subcontractors and service providers. For example, its suppliers must adhere to ISO environmental management standards, and they are forbidden to source from at-risk areas.

NOWAK

Nowak is a precision foundry serving industry and the medical market. It is France’s only non-integrated player to have an industrial unit devoted specifically to the medical industry.

Île-et-Vilaine

121 employees

Siparex’s portfolio companies have been proactive in this respect. Thanks to the use of reporting and environmental management tools, they have progressed every year in making rational use of their waste, as well as measuring and reducing their energy consumption and carbon emissions. In this way they are becoming more dynamic and resilient.

ENVIRONMENT

GOOD PRACTICES

CARBON NEUTRALITY:Late in 2019 Compte.R’s management resolved to define a “Zero CO2” pathway for reducing its carbon emissions over the next five years. This program for the period to 2025 is based on three transformative and distinctive objectives affecting in-house operations and customer relations: (i) making rational use of biomass solutions as a vector for ecological transition; (ii) implementing a 360° action plan aimed at attaining carbon neutrality for the company; and (iii) broadening the impact of its efforts by sharing its expertise in carbon neutrality. Aside from the marketing and commercial benefits it derives from this approach, Compte.R has reformulated its corporate project around a federative ambition that is both meaningful and coherent.

ANNUAL REPORT - ESG 2019 22

INTEGRATED FARMING:Integrated farming methods have boosted Comptoir Rhodanien’s margin while reducing its ecological footprint. The techniques it uses are based on proven agronomic and pest control methods in order to limit its recourse to phytosanitary products, thereby minimizing costs and preserving soil quality. In this way, Comptoir Rhodanien plans to secure third-level High Environmental Value certification for all of its orchards, denoting achievements in terms of biodiversity, phytosanitary strategy, fertilizer management, and irrigation. The company also advises its partners at all levels, from choice of crops to maintenance and packaging.

WASTE REDUCTION: Comptoir Rhodanien has set itself the ambitious goal of el iminating unrecycled plastic packaging for its products by 2021. In addition to switching entirely to recycled and recyclable PET containers, it will perform more selective waste sorting and recycling.

ENERGY CONSERVATION: Comptoir Rhodanien has installed a new energy-saving refrigeration unit to lower its operating costss. Moreover, it is considering the installation of photovoltaic panels on warehouse roofs to save money and reduce its energy consumption.

RECYCLING:Bergamotte uses 100% recyclable and 80% recycled packaging that is manufactured in France. In 2020 it has set itself the goal of shifting to 100% recycled packaging, which is no simple task. For one thing, not all carton manufacturers have access to recycled cardboard. For another thing, it is technically very difficult to produce sufficiently sturdy carton from totally recycled paper. Bergamotte is working closely with suppliers to reach this goal. In addition, it now uses biodegradable materials instead of plastic to protect its products.

INTEGRATED HORTICULTURE: Since 2019 all of Bergamotte’s plant suppliers have obtained MPS certification. In compliance with this environmental accreditation, horticulturists must limit their use of inputs and toxic products, water consumption, and waste and carbon emissions. This figure currently stands at 89% for flower production, and the company intends to reach 100% in 2020.

COMPTOIR RHODANIEN

The Comptoir Rhodanien group grows fruit in the Rhône Valley and ships it primarily to supermarket chains in France and Europe. It is a key player in its market.

Drôme

146 employees

BERGAMOTTE

Bergamotte is an early-stage company that prepares plants and floral bouquets for delivery throughout France.

Paris

76 employees

2322

RSE MANAGEMENT:In order to ensure performance without sacrificing responsibility, LNA Santé has established an RSE management committee. This 10-member committee, representing the HR, purchasing, administration, finance, prospective service, medical, and other departments reports to the chief operating officer. Its goal is to prepare, coordinate, and realize the group’s RSE commitments. This committee met five times in 2019.

COMMUNICATION: LNA Santé communicates openly and constructively with each of its stakeholders, resident patients, staff members, investors, project partners, health care professionals, and civil society representatives. Based on the information it has gathered, in 2019 the company conducted a materiality assessment that summarizes and prioritizes its RSE issues. Wellbeing and quality of care for resident patients stand at the top of that list, followed by the wellbeing of professionals and the involvement and development of their competencies.

LNA SANTÉ

LNA Santé group is France’s fifth-largest private operator of senior care facilities. Its 70 nursing homes and treatment clinics have a combined capacity of 7,000 beds.

Loire Atlantique

6,600 employees

GOVERNANCE

GOOD PRACTICES

Siparex pays great attention to the quality of corporate governance at its portfolio companies. In 2019 all responding companies had formalized shareholder governance, and many of them went even further, adopting a code of ethics and obtaining specific accreditations and certifications.

Cognizant of the urgency of environmental and social issues, companies are also adapting their organization to include specific RSE management departments in order to enhance their impact.

ANNUAL REPORT - ESG 2019 24

B CORP CERTIFICATION:As a socially responsible bank, Shine’s mission is to provide a service that simplifies the administrative tasks faced by entrepreneurs. In 2019 it was awarded B Corp certification—an international accreditation, created in 2006, that acknowledges companies’ social and environmental commitment. The certification procedure lasts several months and assesses quality of governance, employee wellbeing, the wellbeing of communities in their ecosystem, environmental protection efforts, and value creation for customers.

SHINE

Shine is a socially responsible neobank that offers freelance workers a 100% digital account and an administrative assistant.

Paris

38 employees

COOPERATION:One NG Travel brand, Kappa Club, has been granted “Agir” accreditation for responsible tourism. This particularly demanding certification requires that it absorb 100% of the carbon emissions from travel to its clubs, eliminate all disposable plastic before 2021, and protect biodiversity. As a service provider, NG Travel has asked its partner hotels to cooperate and share in its progress. These RSE objectives will be gauged over time, and the approach will be steadily broadened to cover other brands operated by the group.

NG TRAVEL

France’s sixth-largest tour operator, NG Travel arranges travel to 30 destinations through its brands Boomerang Voyages and Promoséjours, its site directours.com, and its travel clubs.

Paris

265 employees

2524

INCLUSION:Apside advocates for disability inclusion, a major social concern that is still neglected at many companies. In 2019 it undertook a mission to reach an agreement with the association that manages the disability inclusion fund in France. Moreover, it has created a specialized unit, Apside Entreprise Aidée, which provides nine handicapped employees with workplace inclusion guarantees and assistance.

TRAINING: The Academy by Apside, a digital platform hosted by MySkillCamp, is a catalog of training programs prepared by staff members and MOOCs. These programs are available to all employees, who can follow them at their own initiative or on the recommendation of their manager. The Academy served 29% of the company’s employees in 2019, corresponding to 820 trainees. In addition to this catalog, each branch formalizes a training and skill management plan so that all employees can progress during their stay with the company.

APSIDE

Apside group is one of France’s leading independent technological advisory firms, operating in the fields of technological engineering, industrial advisory, information systems, digital solutions, and facilities management.

Hauts-de-Seine

2,842 employees

SOCIAL

GOOD PRACTICES

Each year, Siparex’s investee companies in France commit to creating stable jobs within a work environment that is secure and inclusive. Diversity, security, and wellbeing are priorities for human relations and workplace quality.

In 2019, 98% of the companies in the Siparex portfolio monitored occupational accidents*, with the aim of continually improving the quality and security of their work environments. The shared value creation practiced by a growing number of companies fosters team cohesion and job satisfaction.

*54% of investee companies responded to the survey.

ANNUAL REPORT - ESG 2019 26

GIVE BACK:Welcome to the Jungle has created the Give Back project to help nonprofits and NGOs recruit staff and to give job hunters a chance to work at such organizations. This in-house project reflected the desire among the company’s employees’ to expand the range of employment opportunities presented while giving these organizations greater visibility. The Give Back program has enhanced Welcome to the Jungle’s impact on employment and the working world.

WELCOME TO THE JUNGLE

This essential player in the employment market for young people in the 20-35 age bracket offers a wealth of information on job searches, individual companies, careers, and corporate life.

Paris

132 employees

SAFETY:Alcadia’s employees are called upon to work at industrial installations under construction, in operation, or undergoing dismantlement (including sites classified as risk environments). Accordingly, Alcadia agrees to anticipate, prevent, and control its risks in order to ensure employee safety, respect for stakeholders, and environmental protection. After having received MASE certification in 2018, Alcadia set itself the annual goal of no occupational or travel-related accidents among its employees. To do so, it implemented a program of operational discussions and continuing education for its managers and employees based on risk mapping and the diffusion of good practices. It has also acquired a skill quality and management system, enabling it to establish a solid basis for good safety reflexes over the long term.

ALCADIA ENTREPRISES

This firm, which provides engineering, security, and control services for industry, nuclear installations, and the aerospace industry, assists major industrial groups that are executing projects both in France and abroad.

Rhône

118 employees

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THE EMPLOYER IMAGE: PROMOTING SOCIAL PROGRESS

> MAPPING INITIATIVES THAT CAN BE IMPLEMENTED TO FORGE THE EMPLOYER IMAGE

The job market is undergoing rapid change. Certain qualifications are disappearing, employees are expressing different expectations, and careers and modes of employment are becoming fluid in new ways. The task of attracting talent, building teams, and promoting long-term employee loyalty raises fresh challenges, to which the employer image offers tangible and effective responses.

The employer image improves company performance because it addresses employees’ aspirations, their satisfaction, and their wellbeing. By stressing these criteria, they can enhance employee attraction and retention. The employer image promotes social performance and is an integral part of a company’s RSE approach, in addition to contributing to its financial health.

The Siparex Operating Team helps investee companies enhance their employer image. Its goal is to make the relationship between the company and its (potential) employees both fruitful and durable.

Working as closely as possible with investee company staff members, the Operating Team identifies avenues of progress to which they can contribute digital and human responses.

The Siparex team develops and distributes easy-to-use tools that promote social improvement: turnkey HR guides, sample job descriptions, remote working policy guidelines, instructions for coopting, and an approach to creating shared value for staff members. Thanks to its transverse mode of operation, it can disseminate good practices among all the companies in the portfolio and thus promote widespread progress.

LEVEL 1

EMPLOYER IMAGE

STANDARD

LEVEL 2

EMPLOYER IMAGE

ACTIVE

LEVEL 3

EMPLOYER IMAGE

ADVANCED

LEVEL 4

EMPLOYER IMAGE

ACTIVIST

Remuneration Advantages:Meal vouchers/partial Meal vouchers/partial defrayment of transportation defrayment of transportation costs/works committeecosts/works committee

Employee shareholding

Advantage ++ (full supplementary health (full supplementary health coverage, daycare center coverage, daycare center availability, subsidies for bicycle availability, subsidies for bicycle mileage, etc.) mileage, etc.)

Free company sharesEnhanced vacation policy (additional paid vacation and (additional paid vacation and parental leave) parental leave)

Four-day work week Transparent remuneration

Team spirit and collaboration

Remunerated cooptation Intranet and collaborative tools

Team building

Recurrence of employee events (welcome meals, (welcome meals, celebrations, etc.)celebrations, etc.)

Decentralized decision-making (budget (budget management per business management per business unit, horizontal management) unit, horizontal management)

Transparent communication (employee (employee participation in executive participation in executive committee meetings, Q&A committee meetings, Q&A sessions with managers, etc.) sessions with managers, etc.)

Career path

Onboarding (encounters, (encounters, training, sponsorship, etc.)training, sponsorship, etc.)

Career pathway (training, (training, in-house retraining)in-house retraining)

Geographic mobility assistance (payment for (payment for moving expenses, sourcing moving expenses, sourcing for housing, etc.) for housing, etc.)

Offboarding (outplacement (outplacement and related services, payment and related services, payment for moving expenses, sourcing for moving expenses, sourcing for housing, etc.)for housing, etc.)

Work time donations (intrapreneurship, donation (intrapreneurship, donation of skills, etc.) of skills, etc.)

Workplace quality

Attractive facilities

Spaces for relaxation and conviviality

Occasional remote work

Subsidies for employee initiatives (sporting (sporting competitions, humanitarian competitions, humanitarian trips) trips)

Permanent remote work

*Source: Siparex Operating Team, July 2020

ANNUAL REPORT - ESG 2019 28

How do startups develop their employer image?By nature, startups have a very strong in-house culture. At the origin of each of them is a visionary drive to solve a problem. The employer image is built around that mission. It is a major advantage for attracting potential employees when there competition to attract talent. Candidates potentially take a risk in joining a young organization as opposed to a seasoned midmarket or midcap company, but they come out ahead because the corporate culture is generally very advanced. This is a crucial factor of attractiveness and one of the keys to moving up to the next level.

In tangible terms, what actions do these early-stage companies take? There are many different ones. Generally speaking, they establish attentive management, with founders anxious to communicate transparently and vice versa. That entails employee surveys or ritualized discussion times. At several of our investees, for example, employees are given a chance on Fridays to submit a question about any aspect whatsoever of their activity, and management responds the following Monday at a full team meeting. In terms of organization, startups stress horizontality, based on squads that decompartmentalize traditional organizations and increase each employee’s autonomy, fostering greater satisfaction.

Some of XAnge’s investees are precursors in certain aspects of employer image, correct?Yes, this is the case of Evaneos, a personalized travel marketplace—now the European leader—whose employer image is highly advanced. Evaneos offers extended paternity leave, moving assistance for employees arriving in France from abroad, and a pool to which contributions are made through the year so that all employees can take a vacation. Other companies operate in the same way. Welcome to the Jungle, for example, has tested the four-day work week with all of its employees, and 360Learing, a collaborative training platform, has been offering 100% remote work positions for several years now.

What forms of assistance does Siparex offer to XAnge’s portfolio companies?Our early-stage investees have much to teach us about employer image. Siparex encourages them to go further, particularly in sharing their experiences and good practices. We have set up peer exchanges—XAngeTalks HR—that are attended by the HR expertise heads at all investees for the purpose of discussing and comparing operational issues. Once a month we introduce a topic, sometimes with input from an expert, such as adapting management during lockdown periods, formulating back-to-work policies, and determining post-Covid team commitments. Following these meetings, we distribute the minutes to all companies in the portfolio.

STARTUPS AT THE FOREFRONT OF THE EMPLOYER IMAGE

Interview with Pauline Paquet, Startup Success Manager, Siparex

GROUPE KERANKeran specializes in advisory and engineering for land-use planning projects mainly for public authorities, but also for private-sector agents.

This group faced a shortage of candidates possessing the skills it needed. To help it generate applications and secure the loyalty of its employees, Siparex prompted Keran to develop its employer by means of measures including: - using e-marketing levers (SEO, SEA, social networks) and digital tools

to generate interest among job seekers;- enhancing the perception of its strengths and expertise (overhauling

its HR module, filing for HR attractiveness accreditation).

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27, rue Marbeuf 75008 PARIS • Phone: +33(0)1-5393-0220 107, rue Servient 69003 LYON • Phone: +33(0)4-7283-2323

Contact: Priscille Clément, Head of Communication and ESG — [email protected]