ARDIAN’S GROUP RISK APPETITE STATEMENT Ardian Group’s mission is “to invest responsibly We generate stable returns in part because we benefi t and sustainably in order to create lasting value, outstanding from diversifi cation, via our different types of funds and the returns and shared outcomes for our investors and partners, selected portfolio investments within them, and from our for our portfolio companies and their employees and for ability to manage our assets fl exibly across unpredictable our own people”. We have a conservative long-term economic and fi nancial cycles. approach to creating value that emphasises industrial We aim at all times to maintain prudent cash growth and strategic or operational excellence over balances and reserves to meet expected and unexpected excessive leverage and fi nancial engineering. demands and/or regulatory capital requirements in Overall, we have a moderate appetite for risk. specifi c jurisdictions. We operate in fast-moving and highly competitive markets, We have a particularly low appetite for risks that but aim to do so in a prudent, considered manner consistent could threaten our reputation and we vigorously pursue with our mission and core values. Our external investors the monitoring and mitigation of these risks. We continually are predominantly institutions and qualifi ed professionals, internal processes and meaning we have limited exposure to certain legal and assess our governance, our regulatory risks. procedures, the conduct of our directors and employees, as well as our awareness of unavoidable exposure to the At fund level, we avoid investment strategies actions and activities of third parties, including our fund that rely on signifi cant leverage or complex fi nancial administrators. instruments. Our use of derivatives is restricted largely to hedging foreign-exchange and interest-rate exposures We accept operational risks associated with core linked to the long-term nature of some fund cashfl ows. IT systems, with data privacy and cyber security and with Our funds operate within strict guidelines that set various business continuity, but seek ways to mitigate these risks, diversifi cation and other limits agreed with our investors. including by making effective use of insurance. We are We accept the risks that come from our ability to identify strongly committed to building and maintaining a strong and close transactions quickly because this is one of our compliance and risk culture, in the belief that this will competitive advantages. As we expand into new asset considerably reduce our overall risk exposure. Our people classes and pursue new investment opportunities, we and all those with whom we transact are vital to the good fully intend to maintain the disciplines that have led to our conduct of our business and we seek at all times a proper investment success. Wherever possible we will monitor our combination of fairness, incentives and vigilance. approach to ensure that we understand key and emerging Ardian is a fast-growing company measured by risk trends, such as the growing importance of digital assets under management, by client and staff numbers and technologies. by geographical coverage. As we continue to expand, At Group level, we accept signifi cant exposures some of the risks we face are expected to evolve and new to macro-economic risks related to the fact that most of our risks will continue to appear. We are committed to ensuring products are spread across several regions and industrial that we have the appropriate management and systems in sectors. However, we believe that management of these place to manage these so that by embracing growth we inter-connected risks is our essential core competence. can achieve the next phase of our strategic goals.