Private equity and the recruitment sector

1. Private equity and the recruitment sector

2. Contents Inflexion overview Why we like recruitment and staffing businesses Learning points from our deals Making your company attractive to private equity Valuation metrics

3. Inflexion Overview • An entrepreneurial and highly active investor • £850m under management • Investing a new £475m fund at £10-75m per deal • Seeking UK based, high margin, niche leaders • Together our portfolio companies generate £800m sales, £150m EBITDA, and employ over 8000 people HOUSE OF THE YEAR September 11 FUNDRAISING OF THE YEAR September 11 FUNDRAISING OF THE YEAR April 11

4. Strong international footprint and offices in Brazil, India & China FDM Griffin Phlexglobal NPW Asperity Rhead SMD CTC Aviation Group Ideal Shopping Direct Trading locations of ex portfolio Jack Wills Aspen distributes to 70 countries

5. History of success in recruitment and staffing 7 years, 4 investments and a deep understanding of industry dynamics Specialist employment service Specialist IT graduate recruitment Specialist healthcare recruitment Specialist SAP recruitment 2006 + 2010 + 2008 - 2010 2005 - 2011 ESTIMATED TOTAL INDIVIDUAL AVERAGE 5

6. Why we like recruitment and staffing businesses Able to dominate a niche/control scarce resource Capable of rapid growth International potential Low capex, operationally geared

7. The common characteristics of our success stories Dominant market position/control of scarce resource Solving a problem Margins more important than volume Scalable structures Most of operations on a single site Strong management Focus on the exit from Day 1

8. The common development areas in our deals

9. Learning points from our deals

10. Independent Clinical Services Business overview • Leading provider of temporary healthcare staff including nurses, community care workers, locum doctors, GPs and other healthcare specialists • Specialism in mission critical staff such as anaesthetists, surgical nurses and support staff • Had new Complex care in the home division, growing at 40% pa • Key learning points • Strength through adversity • Scalability protects margin • Strong focus on customer service • Growth and quality enhancement • Well positioned for exit EXIT ROUTE Sold to Blackstone Group RETURNS 2.7x / IRR 82% in 22 months Development under our ownership • Pre acquisition • Pursued several acquisitions • Improved quality of earnings • IFX invests at c.4.2x EBITDA • Continued geographical reach expansion • Investment in Complex Care • Exit to Blackstone achieved at 7.6x EBITDA ON EXIT EBITDA (£M) Year end Dec

11. Red Commerce EXIT ROUTE Sold to Dunedin Capital Partners RETURNS 4.4x / IRR 34% in 5 years Business overview • Leading supplier of temporary and permanent staff for global SAP implementations • 80% of the business is in German- speaking Europe Key learning points • Dominate the niche • Control pricing and drive expansion • Expand service line • Great team delivers great results Development under our ownership • Appointed new Chairman • Appointed new FD • Pre acquisition • Invested in Business Development Function • New CRM system installed • Promoted Sales Director to CEO • Extended into Central Europe • US market entry • Launched ‘Red Solution’ service ON EXIT (BUDGET) EBITDA (£M) Year end March

12. FDM Group SECTOR IT Services DATE February 2010 HISTORIC EBITDA £16.8m DEAL TYPE Public-to-Private Business overview • International IT services company specialising in the provision of outsourced IT staffing solutions to large blue chip organisations • Trains high quality IT graduates for international clients through its academy program • Key learning points • Unique offering drives super-performance • Massively scalable • Incentivisation drives performance Development under our ownership • New Hong Kong office opened • Pre acquisition • Consultants numbers for 2010 62% ahead of management plan • New York based training Academy opened in July 2010 • Reviewing Academy apprentice in Europe • Targeting to achieve1,300 consultants (338 at investment in Dec 2009) BUDGET EBITDA (£M) Year end Dec

13. How to optimise the attractiveness of your company to private equity • Dominant market position/control of scarce resource • Prove market share • Create or deepen the niche • Acquire competitor or hold discussions which PE can then fund • Solving a problem • Demonstrate you are the “go-to” choice for employers and candidates, not an outbound call centre • High margins • Resist the chasing of volume by lower margin contracts – It’s very hard to get back once gone • Margins are the benchmark of quality • Scalable structures • Single sites • Strong IT • Interviewers on per hour basis • Strong management • Staffing businesses are highly morale and leadership dependent • Fix any gaps or issues early – instil confidence in the buyer

14. EV / 2013F EBITDA Quoted company valuations Medium sized players trade at a premium compared to the smallest tier… We observe more diversity in majors’ ratings – but overall they benefit from higher ratings The smallest listed players are rated the lowest… Power trend line Source: Mergermarket, DC Advisory intelligence

15. Recent transaction multiples PE Corporate Acquiror Target Acquiror EV (£m) EV (£m) EV/EBITDA Target EV/EBITDA 2012 100 75 234 10x 2011 44 132 437 n.d. 26 16 55 2010 75 3 5 Orion 11 110 2 8 4 110 5 2009 Peter Rowley 25 2 1,161 904 30 59 2008 30 78 77 35 175 18 PE average 72 147 Listed corporate average PE : plc Transactions Ratio 1 : 5.7 572 3,240 PE total Listed corporate total Source: Mergermarket, DC Advisory intelligence