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2013

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20132013 Year-End Summary

For over a hundred years, springtime in Boston has arrived with baseball at Fenway Park and runners in the Boston Marathon. After each long New England winter, baseball’s first pitch and the inspiring efforts of marathoners energize our city. This past year we were instead shaken by the tragic events at the race’s finish line. From that moment, communities from near and far rallied around the victims. As we witnessed the heroism of both first responders and a long list of extraordinary citizens, the phrase “Boston Strong” came to life. Along the way, the Red Sox, inspired by the city’s resilience, began winning and surprised many by ultimately capturing the World Series trophy. The year 2013 is one we will not soon forget.

While the Red Sox created a happy diversion for our city, the dysfunction in Washington loomed over our nation. Who could have guessed that with so much political turmoil stock markets would shrug off this weight and climb steadily higher? Equally noteworthy was how debt financing markets became more and more aggressive as the search for yield drove investors to accept higher levels of risk. The resulting upward pressure on company valuations certainly made 2013 a challenging year in which to invest.

We take comfort that we have faced such demanding environments before, and experience has taught us to remain focused on our fundamental investment principles.Whether in private equity investments or through public securities in Stockbridge, a key tenet for us is to invest behind highly capable managers who have built strong businesses. Together with our management partners, we seek growth derived from a company’s core competencies at times augmented by thoughtful acquisitions of adjacent businesses. We remain very pleased with the composition of our portfolios and are delighted to be working with so many exceptional teams.

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Further building on this solid portfolio foundation, we invested over $650 million of new private equity capital in two U.S.-based companies during the past year. Each business is led by a highly capable and experienced team and benefits from regional density in industries where scale truly matters. The first, SRS Distribution, is a leading distributor of residential roofing supplies across the country. And our second investment, in Lightower, merged two strong fiber network providers primarily focused on the Northeast and Mid-Atlantic.

Being ready and able to make new investments requires us to continuously build our team’s capabilities to capitalize on opportunities as they arise. For example, a key growth area for our firm has been Stockbridge, which is now entering its eighth year. Jon Meyer and Anil Seetharam have been important contributors to the development of Stockbridge, and we are pleased to announce their recent promotions to Managing Director. We are especially gratified that both Jon and Anil started their investment careers in private equity at Berkshire before shifting focus to the public markets, which further underscores the depth we have built within our organization.

With these promotions and other key additions to our staff, we feel well-prepared for the future. Our investment staff across both private equity and Stockbridge now totals nearly 70 professionals, including functional teams within portfolio support, business development, capital markets and legal.

As our beloved Red Sox proved this past year, when every member of a team plays their role united around a common purpose, remarkable things can happen. With this hope, we look with enthusiasm to the opportunities 2014 will bring.

Best wishes for a happy and successful new year!

Berkshire Partners

Contents

Acquisition of SRS Distribution

Merger of Lightower/Sidera

2013 Portfolio Highlights

About Berkshire Partners

Investment Staff

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Portfolio company headquarters

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SRS Distribution McKinney, Texas www.srsicorp.com

Investment Date February 2013

Industries Business Services; Industrials

OverviewIn February 2013, Berkshire acquired a majority interest in SRS Distribution, a distributor of residential roofing supplies and related accessories to contractors across the United States.

Who is SRS?Whether you are repairing a leaky roof or building a new home, SRS has you covered. The company is a valued and trusted partner to the nation’s largest roofing manufacturers, who rely on SRS to efficiently market and deliver their products to contractors. For contractors, SRS’s more than 100 branches across the country provide competitive prices, high levels of customer service and a wide selection of inventory.

Since its founding in 2008 via the acquisition of Suncoast Roofers Supply in Florida, the company has grown significantly. In 2013, SRS became the fourth largest U.S. distributor of residential roofing materials with more than 10,000 customers.

Our PerspectiveSRS plays a critical role in an attractive industry. Demand for residential roofing is relatively stable with approximately 80% of volume driven by non-discretionary reroofing projects. Distributors perform a crucial function in the value chain by supplying products to a fragmented customer base with demanding service requirements— a function that manufacturers are highly unlikely to perform themselves.

SRS has rapidly become a leader in the industry by increasing sales at existing branches, opening new branches in attractive geographies and acquiring smaller independent roofing distributors. SRS’s purchasing scale provides immediate cost savings for newly acquired branches. Independent roofing distributors often choose to join forces with SRS due to its strategy of main-taining local branding and branch management autonomy.

Underpinning this growth is a well-respected and talented management team with a proven track record of growing successful companies in the building products industry. They are the architects of a unique and competitive culture that is pervasive throughout the organization and attracts some of the best talent in the industry.

Acquisition of SRS Distribution

SRS headquarters

Principal division location

Branch location

98

Boston

Washington, D.C.

New York City

Chicago

London

Richmond

networking solutions, such as ultra-low latency connections, video transport and wireless back-haul, as well as diverse cloud, content and data center connectivity.

Prior to the April merger, Lightower operated a dense network in the Northeast with numerous routes passing through the Boston and New York metro areas. Sidera also provided a fully-developed network in New York City, as well as a pres-ence in the Mid-Atlantic region and Chicago. Following the merger, the combined company now manages a network of complementary routes in top-tier markets with greater den-sity and a broader footprint.

Merger of Lightower/Sidera

Our PerspectiveFiber infrastructure providers such as Lightower are poised to benefit from attractive secular tailwinds. Data demand is on the rise due to increased use of bandwidth- intensive applications.

The newly combined Lightower network provides opportunities for improved service to customers and attractive returns on capital. The company enjoys a diverse, blue chip customer base with multi-year contracts and is well positioned to further penetrate its core markets.

OverviewIn April 2013, Berkshire partnered with Pamlico Capital and ABRY Partners to merge Lightower Fiber Networks and Sidera Networks. Together, and now operating under the name Lightower, these companies form a premier provider of tailored, high-capacity communi-cations services to large enterprise, carrier and data center customers.

Who is Lightower?Everything from trading floors to hospitals to arenas now requires a network link, and Lightower connects the dots. Lightower offers fiber-based, industry-specific

LightowerBoxborough, Massachusettswww.lightower.com

Investment Date April 2013

Industry Communications

Current route

Route under construction

Metro presence

Point of presence

Boston

Washington, D.C.

New York City

Chicago

London

AuroraElk Grove

TorontoAlbany

Philadelphia

Roanoke Elizabeth City

Hartford

Portsmouth

Portland

Richmond

Burlington

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investment year invested* industry milestones

2013 Portfolio Highlights

2011 Consumer Products and Retail

2006 Consumer Products and Retail

2005 Consumer Products and Retail

2011 Industrials

2010 Consumer Products and Retail

2005 Consumer Products and Retail

2010 Business Services

2011 Communications

2012 Communications

2008 Transportation

2006 Consumer Products and Retail

2009 Communications

2007 Business Services; Industrials

2006 Business Services; Consumer Products and Retail

2009 Consumer Products and Retail

2012 Consumer Products and Retail

• Opened five stores in Canada, including an expansion into Quebec, and three in the U.S.• Experienced significant growth in e-commerce • Added key senior executives to the team

• Launched e-commerce in both the U.S. and Japan• Added new design talent to further strengthen the creative team

• Completed initial public offering in June (NYSE:COTY) • Continued growth and expansion in emerging markets • Appointed new CFO, effective early 2014

• Achieved strong revenue growth due to the addition and maturation of new stores • Successfully added new products, including a broader selection of prepared foods

• Accelerated store opening pace with 20 new locations• Strengthened East Coast operations, investing in infrastructure and personnel

• Completed the sale of Enardo division to Emerson • Demonstrated significant growth in domestic tank-related segments• Recorded strong performance across key operational safety metrics

• Acquired Schöttli Group, a leading designer and manufacturer of molds for medical products and specialty closures • Launched next generation HyCAP™ system to meet the specific needs of high-output beverage closure manufacturers• Realigned business units and named new CFO

• Experienced strong growth in a variety of channels, including international and e-commerce• Launched brand partnership program with Target• Continued expansion of product offering, including the introduction of K’s Kids, a new baby line

• Opened 35 America’s Best locations and 3 Eyeglass World stores• Recorded strong comparable store sales growth • Expanded Walmart relationship to include fulfillment of certain contact lens orders

• Grew customer base both in the U.S. and abroad due to new market penetration and continued smartphone adoption• Completed acquisition of Soluto, an Israeli provider of remote device and PC management solutions

• Completed integration of Element K and MindLeaders acquisitions• Grew organically and through contribution from recent acquisitions• Continued investment in platform enhancement, content development and international growth

• Experienced strong growth in core business• Appointed Chris Downie as CEO and hired new CFO• Opened new facilities in New York, New Jersey, Washington and Oregon

• Increased build-to-suit activity in Peru and Chile• Acquired a portfolio of rooftop sites in Chile• Initiated operations in Colombia and continued to build organizational structure

• Increased lease-up activity from major carriers in the U.S. • Continued new amendment activity on its portfolio of 130 towers in Puerto Rico

• Achieved growth through price increases, improved productivity and accretive acquisitions• Acquired Aerosonic, Airborne Systems, Arkwin and GE Aviation’s Electromechanical Actuation Division • Completed a special dividend in July

• Invested capital in operations to drive efficiency• Completed a refinancing of its credit facility

*Year of initial investment

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AcostaAdvanced Drainage SystemsAmerican Tire DistributorsAmSafeAritziaBare EscentualsBartlett NuclearCarter’sCitizens of HumanityCoty Inc.Crown Castle InternationalElectro-Motive DieselEngineering Solutions & ProductsFarm BoyGrocery OutletHexcel HMTHuskyLightowerMasai Group InternationalMasterplanMelissa & DougNational VisionNEW AsurionParty CityProfit Recovery GroupSkillsoftSRS DistributionTelxTinnerman Palnut Engineered ProductsTorres UnidasTower Development Corporation (TDC)TransDigmUnited BioSourceVi-JonWaterworks

About Berkshire Partners Current and Former Portfolio Companies

The investments above represent all private equity investments made by Berkshire Partners through its Funds VI–VIII. Nothing herein constitutes an offer or solicitation of an offer to buy any security. The views expressed herein reflect the opinions of Berkshire Partners as of January 2014 and are subject to change.

Berkshire Partners pursues investments in both private equity and marketable securities.

Private EquityBerkshire has invested in over 100 middle market companies since 1986 through its eight private equity investment funds with aggregate capital commitments of over $11 billion. Berkshire has developed specific industry experience in several areas including consumer products and retail, business services, industrial manufacturing, transportation and communications. Within private equity, Berkshire has a strong history of partnering with management teams to grow the companies in which it invests with the goal of consistently achieving superior investment returns. The firm seeks to invest $50 million to $500 million of private equity capital in each portfolio company.

StockbridgeFounded in 2007, Stockbridge is an investment group within Berkshire focused on marketable securities. Stockbridge manages a concentrated portfolio, seeking high-quality companies that exhibit earnings sustainability and growth over the long-term. Stockbridge employs a research-intensive process that benefits from the broader firm’s experiences, insights and relationships as it pursues its investment activities.

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MANAGING DIRECTORS

Mike Ascione

Brad Bloom

Ken Bring

Jane Brock-Wilson

Kevin Callaghan

Chris Hadley

Larry Hamelsky

Shar Heslam

Beth Hoffman

Matt Janchar

Ross Jones

Richard Lubin

Josh Lutzker

Jon Meyer

Greg Pappas

Randy Peeler

Anil Seetharam

Rob Small

EJ Whelan

ADMINISTRATION

Reuben Ackerman Compliance

Samantha Adams Talent

Ken Bring Finance

Katie Bush Communications

Garth Greimann Administration

Shar Heslam Legal

Raleigh Shoemaker Investor Relations

Senior Advisors

Chris Clifford

Carl Ferenbach

PRIVATE EQUITY

Senior Director

Marni Payne

Principals

Dave Bordeau

Alan Ghelberg

Blake Gottesman

Tom Kuo

Ben Levy

Sam Spirn

Vice Presidents

Tara Gadgil

Josh Johnson

Jon Nuger

Business Development

Jeff Dodge

Nii Amaah Ofosu-Amaah

Capital Markets

Matt Janchar

Liz Chang

Portfolio Support

Greg Pappas

Chris Dacey

Aaron Miller

Tom Nolan

Associates

Kevin Blesy

Ed Casserley

Chris Comenos

Rob Denious

Whitney Kelly

Saagar Kulkarni

Mark Mason

Investment Staff

Matt McKenna

John Nelson

Nikhil Pereira-Kamath

Akeel Rangwala

Patrick Sissman

Advisory Directors

Gideon Argov

John Kelly

Tommy Liu

Mike Miles

Ken Pucker

STOCKBRIDGE

Rob Small

Jon Meyer

Anil Seetharam

Neil Wagner

Saad Hasan

Matt Berner

Justin Hupp

Karan Arakotaram

Tim Cox

Austin Boaz

Alex Mansfield

2013

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Berkshire Partners LLC 200 Clarendon Street Boston, Massachusetts 02116

Telephone: 617 227 0050 Fax: 617 227 6105 www.berkshirepartners.com