Our current portfolio embraces travel distribution services (Amadeus), facilities management (Coor), building materials distribution (Ahlsell) and plastic pipes distribution (Frans Bonhomme). We have owned businesses that operate in many other sub-sectors, including contract catering, transportation, plant hire, IT services, oilfield services, car auctions and technical management services.

Our portfolio illustrates the pro- and countercyclical forces that are at work during the downturn. Coor, our Nordic integrated facilities management business, helps its customers cut costs and improve services – an attractive proposition for state and private sector organisations at any time, but even more so during a recession. Amadeus, the travel services business, has tapped into the outsourcing trend with its highly successful Altéa IT outsourcing operation, which has won a number of international airlines as customers (see case study below). Sales and profits at Ahlsell and Frans Bonhomme have been affected by the recession that has hit the construction sector; they are expected to rebound as growth returns to European economies. We have been working actively with the management at all of our companies to address changing market conditions and position them for the upturn. At Coor, we have completed a number of bolt-on acquisitions in complementary service areas.

Cinven has a great deal to offer – well beyond equity capital. We bring an international perspective to companies that have focused mainly on their home country markets. We work alongside management teams as partners, preferring thoughtful and constructive dialogue to heavy-handed advice. We are open to ideas and have shown our willingness and ability to work alongside corporate partners.

In these difficult times, the Business Services sector team's emphasis has been on supporting our portfolio companies. We also regularly discuss developments in the sector with senior executives in a number of European countries and are confident that a wide range of investment opportunities exists. Cinven is well placed to take advantage of these opportunities.

* EBITDA: earnings before interest, taxes, depreciation and amortisation

In a difficult year for the travel and tourism industry, Amadeus, the leading global transaction processor for the industry, increased its profits and experienced a modest decline in sales. To the end of December 2009, travel agent air bookings declined by 3.3% in a market which fell at nearly twice that rate, while sales were just 1.7% lower than in 2008 at €2.5 billion. Over the longer term, Amadeus has performed strongly. Between 2005 and 2009, its revenues increased at a compound annual growth rate (CAGR) of 3.8%; profits (EBITDA*) increased at a CAGR of nearly 10% over the same period.

Amadeus is the largest global distribution system (GDS), connecting travel providers, such as airlines and hotels, with travel agents and end customers. Its Altéa business unit provides IT solutions that optimise airline business processes, including a reservation and sales platform, e-commerce capabilities for airline websites, revenue management and planning technology and, since 2009, departure control systems, which ensure efficient, safe and timely flight departure. It also owns Opodo, the online travel agent.

This strong performance reflects the growth and transformation that have taken place at the company during Cinven's period of ownership. Major growth and efficiency initiatives have included:

• the growth of the core GDS business, which increased its market share from 29% in 2005 to 37% in 2009;
• the development of Altéa, the airline IT solutions business, which achieved a 290% increase in the volume of bookings for airline passengers between 2005 and 2009;
• continued investment in research and development. Annual investment in product development has increased by over 50% since 2005; and
• an operational cost saving programme, which is estimated to have reduced costs by over €175 million between 2005 and 2009.