2014-15 HALF-YEAR REVIEW MITIGATING RISK PROTECTING ASSETS REALISING VALUE INFORMING DECISIONS

2014-15 HALF-YEAR REVIEW MITIGATING RISK PROTECTING ASSETS REALISING VALUE INFORMING DECISIONS

TABLE OF CONTENTS 03 ABOUT CPA GLOBAL 06 2014-15 HALF-YEAR BUSINESS REVIEW, TIM GRIFFITHS, CHIEF EXECUTIVE OFFICER, CPA GLOBAL 10 BOARD OF DIRECTORS & MANAGEMENT TEAM 15 CORPORATE INFORMATION

ABOUT CPA GLOBAL

ABOUT CPA GLOBAL Who we are CPA Global is the world s top intellectual property (IP) management and IP software specialist, and a leading provider of outsourced legal services. With offices across Europe, the United States and Asia Pacific, CPA Global supports many of the world s best known corporations and law firms with a range of IP and broader legal support services, helping them to manage risk, cost and capacity, and realise greater value for their businesses and IP assets. CPA Global helps corporations and law firms in managing valuable IP Rights, such as patents, designs and trademarks, ensuring that IP portfolios are protected, maintained and regularly reviewed in order to maximise value. Working closely with its clients, CPA Global ensures they have the best information on which to base IP decisions, and the best support in terms of helping implement those decisions. Services include patent and trademark renewals, patent research and analytics, patent portfolio optimisation, trademark searching, trademark watching, and domains management, as well as other IP support services such as docketing. In IP software, CPA Global offers five leading IP management solutions (FoundationIP, Inprotech, Ipendo, Memotech, and Patrawin) tailored towards different types of clients and their specific needs, as well as First To File, the IP industry s foremost electronic document management system; and IP Forecaster, the market-leading IP budgeting software. CPA Global is also a leading player in the outsourced legal services sector, providing high-quality and cost-efficient legal support services such as transaction support, contract management, anti-bribery and compliance, and legal research through global delivery teams in the US, Europe and India. Founded in Jersey, Channel Islands, in 1969, CPA Global today employs some 2,000 people, serving clients needs in 200 jurisdictions through its own offices and an extensive agent network. CPA Global s diverse client list ranges from major global corporations, headquartered in Europe, North America and Asia Pacific, to small and medium-sized enterprises and innovation start-ups; and from top international law firms to national and regional law and IP firms. Clients include leading Fortune 500 and FTSE companies, and two-thirds of the Global Lawyer 100. For more information on CPA Global s full range of software and services, please visit the Company s website at: www.cpaglobal.com. www.cpaglobal.com 4

ABOUT CPA GLOBAL Our business at a glance 26 OFFICES ACROSS 4 CONTINENTS AND 12 COUNTRIES 2,000 EMPLOYEES WORLDWIDE AGENT NETWORK OF 1,300 ACROSS 200 JURISDICTIONS MORE THAN 1 MILLION INCOMING IP DOCUMENTS PROCESSED AND DOCKETED ANNUALLY OVER 600 LAWYERS, ENGINEERS AND IP EXPERTS PROVIDING IP AND LEGAL SUPPORT SERVICES ACROSS VARIOUS INDUSTRY VERTICALS PARALEGAL SUPPORT FOR MORE THAN 30,000 ACTIVE MATTERS ANNUALLY MORE THAN 300 PATENT RESEARCHERS 67985123 CPA GLOBAL TECHNOLOGY SERVES MORE THAN 20,000 IP PROFESSIONALS AROUND THE WORLD EVERY DAY OVER1.6 MILLION PATENTS AND TRADEMARKS RENEWED ANNUALLY www.cpaglobal.com 5

2014-15 HALF-YEAR BUSINESS REVIEW TIM GRIFFITHS, CHIEF EXECUTIVE OFFICER, CPA GLOBAL www.cpaglobal.com 6

2014-15 HALF-YEAR BUSINESS REVIEW, TIM GRIFFITHS, CEO, CPA GLOBAL The business transition that took place during 2014 is already delivering benefits to the Company, with our refocused businesses performing well in competitive market conditions. We are also benefitting from our recent acquisitions of Landon IP and Patrafee, which both made important contributions to performance in the first half of 2014/15. Together, these factors have led to steady, profitable growth in our 2014/15 financial year to date. Building on our strengths The aim of the company-wide review that was undertaken in 2014 was to ensure that the business is well positioned both to meet new challenges and to exploit opportunities presented by rapid growth in the IP market. Building on CPA Global s established strengths in IP management and software, we have refocused the business, simplified the structure, and introduced improved operating practices to drive efficiencies and ensure service quality. The new leadership team is successfully implementing our growth strategy across our three core business units of IP Renewals, IP Software, and IP Services, and we are further strengthening our business development and marketing capabilities. In March 2015, we appointed Melanie Fitzpatrick as Chief Marketing Officer. The appointment underlines the important role that marketing plays in raising awareness of the CPA Global brand worldwide and supporting the sales teams in driving revenue growth. In terms of business development, 2014/15 is proving to be another successful year. We have secured a number of significant client wins, signing multi-service deals with major corporations in the US and Asia Pacific. At the same time, our recent acquisitions are also adding to our success. Landon IP, which we acquired in August 2014, has been performing strongly across all regions, while Patrafee acquired in January 2014 has helped further boost profitability in the Nordic markets. www.cpaglobal.com 7

2014-15 HALF-YEAR BUSINESS REVIEW, TIM GRIFFITHS, CEO, CPA GLOBAL IP: a global market opportunity Intellectual property (IP) is a critical foundation of the global economy, driving competitiveness and growth at a business, national and international level. Governments in the world s leading developed and developing economies recognise the need for reliable, ever-more efficient IP strategies, with many incentivising their nations innovators to create and protect IP. Corporations across the globe understand the importance of IP and are increasingly seeking to optimise value from their intellectual assets. As a result, the global market for IP continues to grow, driving the demand for IP management support. Research and development (R&D) is a key driver of IP activity R&D spending by the world s leading corporations reached a record US$647 billion in 2014. New patent and trademark applications are also at record levels globally, with 2.6 million and 4.9 million respectively in 2013 (according to the latest figures from the World Intellectual Property Organization). The total numbers of patents in force globally (9.5 million as of 2013) and trademarks (27 million) are also at record highs. Although CPA Global is already the market leader in IP Renewals and IP Software, there are significant opportunities for us in both as they continue to expand in line with the strong growth in global IP and R&D. However, it is our IP Services business that represents the greatest future growth potential as the volume of IP work continues to increase for IP professionals. Here we are working with an increasing number of clients both corporations and law firms to deliver a broader range of IP support activities, helping to overcome resourcing and budgetary constraints. It is estimated that the current potential market for other IP services is more than six times that for renewals alone. Many companies, recognising the fundamental importance of IP to their businesses, are endeavouring to align the management of their IP assets with broader business objectives. This, in turn, is leading to a greater demand for services such as patent search and analytics. These specialist services provide IP owners with a clearer view of the IP and competitor landscape, thereby helping inform strategic decisionmaking in such areas as R&D investment, which patents are core to the business and need to be protected at all costs, and which could generate better returns through licensing or sale. Landon IP is the world s leading provider of patent search and analytics. The acquisition has strengthened our capabilities in this area and offers exciting opportunities for further growth. www.cpaglobal.com 8

2014-15 HALF-YEAR BUSINESS REVIEW, TIM GRIFFITHS, CEO, CPA GLOBAL A trusted partner CPA Global works as a trusted partner with corporations and law firms around the world. What sets us apart is our deep understanding of our clients business priorities and how these factors impact their IP and innovation strategies. Increasingly, we are working with clients in a highly consultative capacity in order to determine how we can best partner with them to ensure their IP strategies are aligned to support their organisations business objectives. The solutions that we develop draw upon our breadth of capabilities across technology, services and IP best practice. At the same time, we continue to enhance our value proposition to clients by developing new and improved products and services, enabling greater integration of software and services, and maintaining a strong focus on quality service delivery. Over the years, CPA Global has made significant investments in acquisitions to broaden the portfolio of products and services we are able to offer clients. We have expanded globally, particularly, in recent years, in Asia Pacific, where there is a rapidly developing IP market and a significant potential for future growth. With our recent business transition now complete, a strong leadership team in place, a clear growth strategy, and strong backing from Cinven, we are well positioned to drive our business and geographic expansion, enabling us to develop and deliver transformational IP solutions worldwide. Tim Griffiths Chief Executive Officer CPA Global www.cpaglobal.com 9

BOARD OF DIRECTORS & MANAGEMENT TEAM

BOARD OF DIRECTORS & MANAGEMENT TEAM Tim Griffiths Chief Executive Officer Tim Griffiths joined CPA Global at the beginning of February 2014 and succeeded Peter Sewell as Chief Executive Officer on 31 March. Tim was formerly Chief Executive Officer and Executive Chairman of the Williams Lea Group, a worldleading Business Process Outsourcing (BPO) company specialising in marketing services. He established Williams Lea as a BPO provider in 1993 and subsequently led the development of the Company into a $2 billion global services business, employing 12,500 people in 40 countries. Like CPA Global, Williams Lea established key operating centres in EMEA, the Americas and Asia Pacific, and built a marketleading service delivery centre in India. Alasdair Marnoch Chief Financial Officer Alasdair Marnoch was appointed Chief Financial Officer in December 2013, bringing more than 20 years experience as a senior financial professional to the Company. Before joining CPA Global, he was Chief Financial Officer at Iris Software Group, one of the UK s leading accountancy and payroll software companies. Previously, he held senior roles at Equiniti, Xafinity Group, Jarvis plc, Dunlop Slazenger Group (DSG), and Thames Water plc. Simon Webster Chief Business Development Officer In June 2014, Simon Webster took on responsibility for CPA Global s worldwide sales organisation as Chief Business Development Officer. Simon has been with the Company for 15 years and has a detailed understanding of the business, its operations and clients. Prior to joining CPA Global, Simon spent the majority of his career in financial services. He was at the heart of the industry s client service revolution in the 1990s, where he managed programmes that delivered value to customers, staff and shareholders alike. www.cpaglobal.com 11

BOARD OF DIRECTORS & MANAGEMENT TEAM Anthony Cardona Principal, Cinven Anthony Cardona is a member of Cinven s TMT sector team and the UK and Ireland regional team. He has been involved in a number of investments, including CPA Global, Northgate Public Services, Visma and Ziggo. Prior to this, Anthony worked as a strategy consultant for L.E.K. in London, where he advised corporate and private equity clients across various sectors, including financial services, industrials and TMT. Anthony has an MA in History from Oxford University. He joined Cinven in 2010. Stuart McAlpine Partner, Cinven Stuart McAlpine leads Cinven s Business Services and Industrials sector teams. He is also a member of the Healthcare sector team and the UK and Ireland regional team. He has been involved in a number of transactions, including Amadeus, AMCo, CPA Global, Fitness First, Foseco, Medpace, Phadia, Sebia and Unique Pub Company. Stuart was previously with the Royal Bank of Scotland in its Leveraged Finance Group and before that at Ernst & Young in Boston and London. Stuart has a BAcc in Accountancy from Glasgow University. He joined Cinven in 1996. www.cpaglobal.com 12

BOARD OF DIRECTORS & MANAGEMENT TEAM Global Management Committee The Global Management Committee generally meets on a monthly basis. In addition to Tim Griffiths, Chief Executive Officer; Alasdair Marnoch, Chief Financial Officer; and Simon Webster, Chief Business Development Officer who all sit on the Board the Committee comprises the following individuals and roles: Melanie Fitzpatrick Chief Marketing Officer Melanie Fitzpatrick is a highly experienced marketing professional and strategic business leader with a successful track record of working with international businesses. At CPA Global, she leads the marketing and communications teams to deliver multi-channel marketing and pre-sales strategies worldwide. Melanie joined CPA Global in March 2015 from Allegis Group, where she was Managing Director, Strategic Operations, based in Sydney, and worldwide brand advisor to the Group. Gordon Samson Chief Operations Officer, Renewals Gordon Samson has operational responsibility for CPA Global s core Renewals business as well as central support services for the Company. Prior to joining CPA Global, Gordon worked for the Ormolu publishing group in Scotland and at international marketing services company Williams Lea, where he was responsible for operations and customer engagement in Europe, the Middle East and Africa, overseeing more than 3,000 people across 12 locations. Toni Nijm Chief Technology Officer As Chief Technology Officer, Toni Nijm is responsible for CPA Global s IP software solutions business, playing a key role in driving further integration of the Company s software and services offerings. A qualified patent attorney, Toni has been involved in software development for many years. In 2004, he co-founded Ipendo, the Sweden-based IP management software and service provider that was acquired by CPA Global in 2011. www.cpaglobal.com 13

BOARD OF DIRECTORS & MANAGEMENT TEAM Global Management Committee CONTINUED Marc Daleiden Chief Operations Officer, Services Marc Daleiden has overall responsibility for CPA Global s Services business, including IP Support Services, Patent Search & Analytics, IP Portfolio Applications, and Legal Services Outsourcing. Marc has many years experience in selling and delivering complex outsourcing contracts in business services. He was previously with TAG/DHL, where he worked in a number of senior management roles in Germany, the UK and the US. Julie Cormack Global Head of HR As Global Head of Human Resources, Julie Cormack leads an international team responsible for all HR matters and activities, including people development, training, recruitment, and compensation and benefits. Julie has extensive experience in managing HR functions within multinational corporations. Previously, she was Global HR Director at Maersk and has also worked at BP and international brewing company SABMiller on large transformation and change projects. www.cpaglobal.com 14

Corporate Information Our Shareholders CPA Global was acquired by Cinven in March 2012. Cinven is a leading European private equity firm, founded in 1977, with offices in Guernsey, London, Frankfurt, Paris, Madrid, Milan, Luxembourg, Hong Kong and New York. It acquires Europe-based companies that require an equity investment of 100 million or more. Its European focus and expertise are complemented by an ability to capitalise on global growth opportunities through its offices in Asia and the Americas. The firm focuses on six sectors: Business Services, Consumer, Financial Services, Healthcare, Industrials, and Technology, Media and Telecommunications (TMT). Cinven acquires successful, high-quality companies and works with them to help them grow and develop, using its proven valuecreation strategies. It takes a responsible approach towards its portfolio companies, their employees, suppliers and local communities, the environment and society. Cinven means, as the context requires, Cinven Group Limited, Cinven Partners LLP, Cinven (Luxco1) S.A., Cinven Limited, Cinven Capital Management (V) General Partner Limited and their respective Associates (as defined in the Companies Act 2006) and/or funds managed or advised by any of the foregoing. Our Head Office CPA Global Limited Liberation House Castle Street St Helier Jersey JE1 1BL Channel Islands Tel: +44 (0) 1534 888711 Fax: +44 (0) 1534 888747 Website: www.cpaglobal.com www.cpaglobal.com 15