European Technology Update 25thAugust 2014

Thierry Monjauze Managing Director 63 Brook Street London W1K 4HS United Kingdom Phone: +44 (0) 20 7518 8900 [email protected]

Jonathan Organ Vice President 63 Brook Street London W1K 4HS United Kingdom Phone: +44 (0) 20 7518 8900 [email protected]

www.harriswilliams.com www.harriswilliams.de Recent Developments

Company . Hexagon has agreed to acquire Vero Software, the UK-based computer aided software company, for an Specific undisclosed amount News . 21st Century Fox has withdrawn its $76 billion offer for Time Warner . BSkyB has made an offer to acquire Sky Italia and Sky Deutschland from 21st Century Fox for £4.9 billion . Zillow has agreed to acquire Trulia, the online real estate and home-related information marketplace, for $3.3 billion . Cerner Corporation has acquired Siemens’ healthcare information technology business unit for $1.3 billion . YouTube has completed the acquisition of Twitch Interactive, formerly known as Justin.tv, a video platform and community for online gamers, for $1 billion . Gemalto has acquired SafeNet, the provider of enterprise network security solutions, hardware, software and chips to protect communications, intellectual property and digital identities, for $890 million . Intel has acquired Axxia Networking Business, the provider networking and infrastructure products for wireless networks and enterprise gateways, from LSI Corporation for $650 million . The Carlyle Group has acquired Expereo International, the provider of broadband internet, ethernet, wifi, virtual private networks and equipment to international carriers and cloud providers, for €500 million . Penta Capital is backing the proposed take-private of Daisy Group, a business communications and IT services company, for £470 million . Host Europe WVS has had its two c.£300 million offers to acquire iomart Group, the provider of cloud computing and managed hosting services, rejected by the Board . Dassault Systèmes has acquired Quintiq, the provider of software solutions for operational planning and event management, for €250 million . Lake Capital has acquired Engine Group, the provider of advertising and branding services, from HIG Capital for £100 million . Xchanging has acquired Agencyport Europe, the provider of software to the property, casualty and health insurance markets, for £64 million . InvenSense has acquired Movea, the provider of data fusion and motion processing firmware, software, and IP for the consumer electronics industry, for $61 million . Sage Software has acquired Exact Software Deutschland, the German division of the payroll solution provider, for €16 million . SPIE has agreed to acquire Connectis, the provider of unified communication and collaboration technologies, and Softix, the provider of ICT services, from Aurelius for CHF 48 million

Industry . Western European online cross-border sales are increasing, forecast to reach 14% of all ecommerce sales in 2014. By 2018, cross-border activity is expected to more than double in value and account for 20% of the Trends region’s total ecommerce sales, according to eMarketer . The number of mobile connections has increased from 5.7 billion in 2011 to 7.0 billion in 2014, and expected to reach 8.5 billion by 2018 according to eMarketer . The number of household bill payments made via PCs, Tablets and Mobiles will exceed 20 billion this year, representing approximately 16% of all global consumer household bills. This trend is being driven by a growing consumer acceptance of transactional digital banking, and the sharp rise in mobile banking adoption overall, according to Juniper Research . European Online Display Advertising Spend is forecast to grow more than three times faster than total advertising spend over the next five years. Online display advertising in Western Europe is currently growing at a 10.3% CAGR currently, according to Forrester

Source: Various industry news outlets. 1 Public Market Trading Statistics

Stock Last 30 Days Performance 4%

2% 2.5% 2.2% 0% 0.8% (2%) (3.8%) (4.4%) (4%)

(6%)

(8%)

(10%) 25 Jul 01 Aug 08 Aug 15 Aug 22 Aug

Nasdaq Composite Internet and Digital Media Software and IT Services Communications DJ Stoxx 600 Technology Last Twelve Months 50%

40%

30% 24.6% 23.6% 20% 15.0% 12.3% 10% 6.6%

0%

(10%) Aug 2013 Nov 2013 Feb 2014 May 2014 Aug 2014

Software and IT Services Communications Nasdaq Composite Internet and Digital Media DJ Stoxx 600 Technology Sources: Capital IQ, 25 August 2014; Brokers’ reports Comparable CY2014E EV / Revenue EV / EBITDA P / E Trading EBITDA Margin Growth CY2014E CY2015E CY2014E CY2015E CY2014E CY2015E

Summary Software and IT Services Enterprise Applications 13.5% 9.9% 3.6x 3.1x 10.9x 14.0x 21.6x 17.8x European Large Cap Software 33.6% 1.1% 4.3x 4.0x 12.7x 11.6x 19.5x 17.5x Financial Software 25.1% 2.3% 3.0x 2.8x 11.4x 9.9x 22.0x 20.5x Healthcare Software 20.5% 13.9% 2.4x 2.2x 11.4x 10.2x 20.6x 17.6x Large Cap IT Services 14.3% 2.0% 1.2x 1.2x 8.5x 7.9x 15.2x 13.8x Mid Cap IT Services 9.6% (1.4%) 0.8x 0.8x 8.0x 7.4x 14.3x 12.0x Offshore IT Services 25.3% 15.8% 3.3x 2.9x 12.7x 11.6x 18.1x 16.3x Security Software 26.7% 13.4% 5.0x 4.4x 12.7x 11.0x 17.3x 15.9x Communications Digital Broadband 11.4% (2.7%) 0.8x 0.8x 7.1x 5.9x 14.4x 13.4x Diversified Communication Equipment 11.7% (11.1%) 1.2x 1.1x 10.1x 8.2x 20.7x 16.4x Mobile Content / Solutions Providers 18.8% 29.4% 2.7x 2.1x 13.6x 9.3x 29.8x 19.7x Mobile Infrastructure Software 28.8% 10.0% 2.7x 2.5x 11.4x 14.4x 17.8x 18.9x Internet and Digital Media Chinese Internet Leaders 7.1% 230.8% 4.0x 3.1x 20.5x 15.6x 23.8x 21.9x Online Classifieds 39.5% 22.2% 7.9x 6.5x 14.4x 12.4x 23.1x 19.6x Content Providers / Communities 17.9% 25.5% 5.7x 4.3x 13.2x 13.5x 31.1x 26.2x Ecommerce 19.1% 17.0% 3.4x 2.8x 16.4x 14.1x 25.9x 24.7x Global Internet Leaders 34.9% 21.8% 6.2x 5.1x 18.1x 14.6x 22.9x 21.4x Interactive Entertainment 25.0% 25.5% 2.1x 1.9x 12.9x 8.2x 16.9x 16.8x Intermediation and Comparison 17.4% 20.7% 4.5x 3.6x 13.0x 11.7x 18.8x 16.7x Online Gambling 25.4% 4.2% 2.3x 2.2x 8.6x 8.8x 16.3x 16.5x Online Marketing 17.1% 8.4% 2.2x 1.9x 12.0x 10.0x 20.8x 22.4x Online Travel 25.9% 18.1% 4.9x 4.1x 14.0x 14.3x 24.4x 23.5x

2 Software and IT Services

Last 30 Days Performance

4% 2% 0% (2%) (4%) (6%) (8%)

European Large Cap Software 1.8% (10%) Large Cap IT Services (2.7%) Financial Software (2.8%) (12%) Offshore IT Services (2.8%) Healthcare Software (3.3%) (14%) Security Software (5.4%) Mid Cap IT Services (7.1%) Enterprise Applications (10.9%) (16%) 25 Jul 01 Aug 08 Aug 15 Aug 22 Aug Enterprise Applications Healthcare Software Offshore IT Services Large Cap IT Services Security Software Financial Software European Large Cap Software Mid Cap IT Services

Last Twelve Months Performance

80% Enterprise Applications 47.0% Offshore IT Services 40.4% Mid Cap IT Services 29.5% 70% Healthcare Software 26.7% Large Cap IT Services 16.8% 60% Financial Software 16.2% Security Software 14.3% European Large Cap Software 7.8% 50%

40%

30%

20%

10%

0%

(10%) Aug 2013 Nov 2013 Feb 2014 May 2014 Aug 2014 Enterprise Applications Mid Cap IT Services Offshore IT Services Financial Software Healthcare Software Large Cap IT Services Security Software European Large Cap Software

3 Source: Capital IQ, 25 August 2014 Software and IT Services (Continued)

Market Enterprise CY2014E EV / Revenue EV / EBITDA P / E Cap ($m) Value ($m) EBITDA Margin Growth CY2014E CY2015E CY2014E CY2015E CY2014E CY2015E

European Large Cap Software SAP 92,355 93,814 34.7% (0.8%) 4.1x 3.8x 11.7x 10.6x 17.0x 15.5x Dassault Systemes 16,628 15,375 31.6% 6.3% 5.0x 4.5x 16.0x 13.7x 28.0x 24.6x Sage 7,144 7,742 30.0% (2.1%) 3.5x 3.3x 11.7x 11.0x 17.3x 15.9x Temenos 2,562 2,679 33.1% 7.3% 5.3x 4.9x 16.1x 14.1x 27.5x 22.8x Aveva 2,257 2,062 33.1% 7.1% 5.0x 4.5x 15.0x 13.1x 22.5x 19.9x Micro Focus 2,064 2,320 45.5% 4.2% 5.3x 5.1x 11.6x 11.3x 14.2x 13.1x Software AG 2,048 2,218 27.4% (14.7%) 1.9x 1.9x 7.0x 7.2x 10.2x 10.4x Mean 33.6% 1.1% 4.3x 4.0x 12.7x 11.6x 19.5x 17.5x Median 33.1% 4.2% 5.0x 4.5x 11.7x 11.3x 17.3x 15.9x Financial Software Intuit 23,724 22,309 35.2% 6.7% 5.0x 5.0x 14.1x NA 22.0x 29.1x Temenos 2,562 2,679 33.1% 7.3% 5.3x 4.9x 16.1x 14.1x 27.5x 22.8x Fidessa 1,465 1,369 24.6% (0.5%) 3.0x 2.8x 12.1x 11.1x 29.0x 26.6x SimCorp 1,267 1,200 25.8% 4.0% 3.7x 3.4x 14.4x 12.2x 22.1x 18.0x Innovation 615 520 15.7% 11.3% 1.3x 1.2x 8.5x 7.3x 18.0x 15.7x Linedata 204 258 24.9% (5.9%) 1.2x 1.2x 4.9x 4.8x 9.6x 9.1x Microgen 154 120 28.3% (2.3%) 2.5x 2.4x 8.8x 8.5x 20.1x 19.2x StatPro 94 89 13.6% (2.5%) 1.7x 1.7x 12.6x 11.2x 27.5x 23.8x Mean 25.1% 2.3% 3.0x 2.8x 11.4x 9.9x 22.0x 20.5x Median 25.4% 1.8% 2.7x 2.6x 12.3x 11.1x 22.0x 21.0x Enterprise Applications Splunk 5,211 4,384 2.9% 40.3% 10.7x 8.0x NM NM NM NM Guidewire Software 3,054 2,624 17.4% 16.8% 7.3x 6.6x NM 38.1x NM NM Exact 851 781 20.2% (4.1%) 2.8x 2.7x 13.7x 12.5x 22.7x 21.7x IFS 794 761 18.9% (0.5%) 1.8x 1.7x 9.4x 8.2x 22.6x 17.9x Kofax 713 621 13.3% 8.8% 2.0x 1.9x 15.3x 11.3x 25.9x 20.9x Jive Software 495 402 (0.7%) 19.7% 2.3x 2.0x NM NM NM NM SDL 450 447 8.6% 0.8% 1.0x 0.9x 11.7x 9.9x 24.4x 16.9x Cegid 337 407 27.3% (2.2%) 1.2x 1.1x 4.3x 4.2x 12.5x 11.5x

Mean 13.5% 9.9% 3.6x 3.1x 10.9x 14.0x 21.6x 17.8x Median 15.4% 4.8% 2.2x 2.0x 11.7x 10.6x 22.7x 17.9x Healthcare Software McKesson 44,467 52,821 2.8% 30.7% 0.3x 0.3x 11.2x 9.9x 18.6x 15.9x Cerner 19,290 18,457 34.1% 16.4% 5.4x 4.8x 15.9x 13.8x 34.1x 28.9x Allscripts Healthcare Solutions 2,631 3,151 15.8% 3.1% 2.2x 2.1x 14.2x 11.7x 38.2x 26.4x CompuGroup 1,301 1,721 20.7% 7.9% 2.5x 2.4x 12.1x 10.5x 15.5x 13.8x Advanced Computer Software 912 993 23.0% 20.2% 2.8x 2.6x 12.1x 11.3x 16.3x 16.0x Emis 744 773 33.2% 30.2% 3.5x 3.3x 10.4x 9.8x 17.5x 16.8x Cegedim 497 1,135 17.6% (5.2%) 1.0x 0.9x 5.5x 5.2x 10.1x 8.6x Allocate Software 133 110 16.7% 7.9% 1.6x 1.5x 9.7x 9.3x 14.4x 14.6x Mean 20.5% 13.9% 2.4x 2.2x 11.4x 10.2x 20.6x 17.6x Median 19.1% 12.2% 2.4x 2.3x 11.7x 10.2x 16.9x 16.0x

4 Sources: Capital IQ, 25 August 2014; Brokers’ reports Software and IT Services (Continued)

Market Enterprise CY2014E EV / Revenue EV / EBITDA P / E Cap ($m) Value ($m) EBITDA Margin Growth CY2014E CY2015E CY2014E CY2015E CY2014E CY2015E

Security Software Symantec 16,702 14,748 33.0% (0.5%) 2.2x 2.2x 6.7x 5.7x 13.1x 11.8x Check Point 13,002 11,769 57.6% 6.6% 7.9x 7.5x 13.8x 13.1x 18.6x 17.1x Palo Alto Networks 6,552 6,184 12.3% 41.3% 9.2x 6.9x NM NM NM NM Trend Micro 4,406 3,443 33.9% 6.5% 3.2x 3.1x 9.3x 9.2x 22.9x 21.9x Proofpoint 1,495 1,427 (0.4%) 40.2% 7.7x 6.2x NM NM NM NM AVG Technologies 965 919 38.2% (8.1%) 2.5x 2.4x 6.5x 6.2x 9.5x 8.9x Qualys 822 713 18.9% 22.2% 5.4x 4.5x 28.6x 22.4x NM NM F-Secure 540 478 20.5% (0.8%) 2.3x 2.1x 11.0x 9.3x 22.4x 19.6x Mean 26.7% 13.4% 5.0x 4.4x 12.7x 11.0x 17.3x 15.9x Median 26.7% 6.5% 4.3x 3.8x 10.2x 9.2x 18.6x 17.1x Large Cap IT Services Accenture 50,821 47,338 16.4% 6.1% 1.6x 1.5x 9.5x 9.0x 17.4x 16.1x Capita Group 13,221 16,250 15.4% 11.5% 2.3x 2.1x 14.7x 13.6x 18.8x 17.2x Cap Gemini 11,232 11,096 10.7% (1.3%) 0.8x 0.8x 7.5x 6.9x 15.2x 13.7x CGI 10,701 12,919 15.8% 2.5% 1.3x 1.3x 8.1x 7.6x 12.9x 11.6x Atos Origin 8,801 8,755 11.0% (4.0%) 0.8x 0.7x 6.9x 6.0x 13.2x 11.8x Computer Sciences 8,675 9,142 16.7% (2.8%) 0.7x 0.7x 4.2x 4.1x 13.7x 12.1x Mean 14.3% 2.0% 1.2x 1.2x 8.5x 7.9x 15.2x 13.8x Median 15.6% 0.6% 1.0x 1.0x 7.8x 7.3x 14.4x 12.9x Mid Cap IT Services Indra Sistemas 2,420 3,287 9.4% (3.6%) 0.8x 0.8x 8.9x 8.2x 15.8x 12.9x Sopra 1,804 2,066 9.7% 4.6% 1.1x 1.0x 11.0x 10.0x 10.9x 10.0x Tieto 2,010 2,065 13.3% (11.8%) 1.0x 1.0x 7.6x 6.9x 15.5x 13.5x Groupe Steria 772 1,137 8.2% 2.9% 0.5x 0.4x 5.6x 5.1x 13.9x 9.5x GFI Informatique 443 551 7.5% 1.0% 0.5x 0.5x 7.1x 6.9x 15.4x 13.9x Mean 9.6% (1.4%) 0.8x 0.8x 8.0x 7.4x 14.3x 12.0x Median 9.4% 1.0% 0.8x 0.8x 7.6x 6.9x 15.4x 12.9x Offshore IT Services Tata 79,737 76,426 29.7% 22.4% 5.0x 4.3x 16.9x 14.9x 22.2x 19.5x Infosys 34,029 29,331 26.9% 10.9% 3.4x 3.1x 12.6x 11.7x 17.6x 16.2x Cognizant 28,001 23,872 20.8% 14.3% 2.4x 2.1x 11.3x 10.0x 18.2x 16.1x Wipro 22,572 19,983 23.5% 14.8% 2.6x 2.4x 11.0x 10.3x 15.4x 14.3x HCL 18,465 17,067 25.6% 16.5% 3.0x 2.7x 11.9x 11.1x 17.0x 15.4x Mean 25.3% 15.8% 3.3x 2.9x 12.7x 11.6x 18.1x 16.3x Median 25.6% 14.8% 3.0x 2.7x 11.9x 11.1x 17.6x 16.1x

Sources: Capital IQ, 25 August 2014; Brokers’ reports 5 Communications

Last 30 Days Performance

Mobile Content / Solutions Providers (0.3%) Diversified Communication Equipment (3.0%) 2% Mobile Infrastructure Software (5.1%) Digital Broadband (6.6%) 0%

(2%)

(4%)

(6%)

(8%)

(10%)

(12%)

(14%) 25 Jul 01 Aug 08 Aug 15 Aug 22 Aug

Mobile Infrastructure Software Digital Broadband Mobile Content / Solutions Providers Diversified Communication Equipment

Last Twelve Months Performance

40%

30%

20%

10%

0%

Digital Broadband 24.5% (10%) Diversified Communication Equipment 21.7% Mobile Infrastructure Software 11.5% Mobile Content / Solutions Providers (4.2%)

(20%) Aug 2013 Nov 2013 Feb 2014 May 2014 Aug 2014

Digital Broadband Diversified Communication Equipment

Mobile Content / Solutions Providers Mobile Infrastructure Software

Source: Capital IQ, 25 August 2014 6 Communications (Continued)

Market Enterprise CY2014E EV / Revenue EV / EBITDA P / E Cap ($m) Value ($m) EBITDA Margin Growth CY2014E CY2015E CY2014E CY2015E CY2014E CY2015E

Digital Broadband Technicolor 2,620 3,422 16.3% (7.8%) 0.8x 0.8x 4.7x 4.5x 11.6x 9.1x Logitech 2,264 1,809 9.0% 3.5% 0.8x 0.8x 9.4x 8.1x 19.8x 17.3x Pace 1,706 1,868 9.9% 5.9% 0.7x 0.7x 7.2x 6.6x 10.5x 9.8x TomTom 1,671 1,604 14.1% (4.3%) 1.3x 1.3x 9.0x 8.4x 19.7x 20.4x Kudelski 852 1,140 14.4% 1.7% 1.1x 1.1x 7.9x 7.4x 14.8x 13.1x Parrot 290 200 6.4% (7.6%) 0.6x 0.6x 9.9x 5.3x NM 16.3x Advanced Digital Broadcast 72 40 9.4% (10.0%) 0.1x 0.1x 1.3x 1.2x 10.0x 8.0x Mean 11.4% (2.7%) 0.8x 0.8x 7.1x 5.9x 14.4x 13.4x Median 9.9% (4.3%) 0.8x 0.8x 7.9x 6.6x 13.2x 13.1x Diversified Communication Equipment LM Ericsson Telephone 41,146 34,732 12.6% (7.2%) 1.1x 1.0x 8.5x 7.3x 18.0x 15.1x Nokia 30,442 21,913 13.7% (50.4%) 1.3x 1.3x 9.9x 9.0x 25.5x 20.7x Alcatel-Lucent 9,419 10,586 9.1% (12.0%) 0.6x 0.6x 6.6x 5.2x NM 15.8x CIENA 2,095 2,894 10.5% 10.1% 1.2x 1.1x 11.6x 9.2x 18.6x 13.5x ADTRAN 1,236 1,161 12.6% 4.2% 1.7x 1.6x 13.8x 10.5x 20.5x 16.9x Mean 11.7% (11.1%) 1.2x 1.1x 10.1x 8.2x 20.7x 16.4x Median 12.6% (7.2%) 1.2x 1.1x 9.9x 9.0x 19.6x 15.8x Mobile Infrastructure Software QUALCOMM 128,752 110,608 38.4% 7.9% 4.0x 3.7x 10.4x 10.8x 14.0x 13.6x Amdocs 7,293 6,119 19.6% 7.1% 1.7x 1.6x 8.6x 7.9x 14.2x 13.3x VeriSign 7,039 6,861 65.8% 4.7% 6.8x 6.5x 10.3x 9.7x 20.6x 18.2x Synchronoss Technologies 1,773 1,701 33.4% 26.8% 3.8x 3.2x 11.5x 9.4x 25.1x 21.1x Sonus Networks 923 808 NM 10.0% 2.7x 2.4x NM NM NM 35.1x Redknee Solutions 366 316 5.8% 37.4% 1.2x 1.2x 20.5x 25.1x NM NM TeleCommunication Systems 182 254 10.0% (0.6%) 0.7x 0.6x 6.9x 5.9x 15.3x 12.4x Smith Micro Software 38 32 NM (13.1%) 0.9x 0.7x NM 32.0x NM NM

Mean 28.8% 10.0% 2.7x 2.5x 11.4x 14.4x 17.8x 18.9x Median 26.5% 7.5% 2.2x 2.0x 10.4x 9.7x 15.3x 15.9x Mobile Content / Solutions Providers Opera Software 1,966 1,910 25.1% 58.0% 4.0x 2.9x 16.0x 10.7x 29.8x 18.8x GameLoft 539 459 12.6% 0.9% 1.4x 1.2x 11.2x 7.8x NM 20.7x Mean 18.8% 29.4% 2.7x 2.1x 13.6x 9.3x 29.8x 19.7x Median 18.8% 29.4% 2.7x 2.1x 13.6x 9.3x 29.8x 19.7x

Sources: Capital IQ, 25 August 2014; Brokers’ reports 7 Internet and Digital Media

Last 30 Days Performance

Content Providers / Communities 5.9% 10% Ecommerce 5.2% Global Internet Leaders 2.0% Online Travel 1.8% Online Gambling 1.3% Chinese Internet Leaders 0.9% Online Classifieds (0.4%) 5% Interactive Entertainment (1.2%) Intermediation and Comparison (4.3%) Online Marketing (5.6%)

0%

(5%)

(10%)

(15%) 25 Jul 01 Aug 08 Aug 15 Aug 22 Aug

Online Travel Online Classifieds Chinese Internet Leaders Global Internet Leaders Ecommerce Content Providers / Communities Online Marketing Interactive Entertainment Online Gambling Intermediation and Comparison

Last Twelve Months Performance

Global Internet Leaders 33.3% 60% Online Classifieds 28.3% Content Providers / Communities 27.5% Online Gambling 25.5% Online Travel 13.5% 50% Online Marketing 12.2% Interactive Entertainment 6.1% Ecommerce (1.0%) 40% Chinese Internet Leaders (3.9%) Intermediation and Comparison (10.5%)

30%

20%

10%

0%

(10%)

(20%) Aug 2013 Nov 2013 Feb 2014 May 2014 Aug 2014 Content Providers / Communities Chinese Internet Leaders Global Internet Leaders Interactive Entertainment Online Marketing Online Classifieds Online Travel Intermediation and Comparison Ecommerce Online Gambling

Source: Capital IQ, 25 August 2014 8 Internet and Digital Media (Continued)

Market Enterprise CY2014E EV / Revenue EV / EBITDA P / E Cap ($m) Value ($m) EBITDA Margin Growth CY2014E CY2015E CY2014E CY2015E CY2014E CY2015E

Global Internet Leaders Apple 606,691 599,805 33.3% 6.3% 3.2x 3.0x 9.7x 9.2x 15.5x 14.2x Google 380,806 329,891 39.2% 12.4% 4.9x 4.2x 12.6x 10.5x 22.5x 18.9x Microsoft 372,029 310,303 34.1% 13.4% 3.3x 3.0x 9.7x 8.5x 17.9x 14.9x Facebook 193,886 180,256 65.2% 60.1% 14.7x 11.0x 22.6x 17.0x NM 36.9x Amazon 153,207 148,340 6.7% 21.3% 1.6x 1.4x 24.3x 17.7x NM NM Baidu 75,097 71,457 33.4% 52.0% 9.1x 6.5x 27.2x 19.0x 35.1x 25.6x eBay 68,887 66,839 32.6% 13.1% 3.7x 3.2x 11.3x 10.1x 18.7x 16.4x Yahoo! 37,805 36,277 28.1% (1.8%) 8.3x 8.1x 29.7x 27.1x 26.6x 25.2x Yandex 9,245 9,164 41.2% 19.2% 6.5x 5.2x 15.8x 12.4x 24.2x 19.4x Mean 34.9% 21.8% 6.2x 5.1x 18.1x 14.6x 22.9x 21.4x Median 33.4% 13.4% 4.9x 4.2x 15.8x 12.4x 22.5x 19.1x Ecommerce Facebook 193,886 180,256 65.2% 60.1% 14.7x 11.0x 22.6x 17.0x NM 36.9x Amazon 153,207 148,340 6.7% 21.3% 1.6x 1.4x 24.3x 17.7x NM NM eBay 68,887 66,839 32.6% 13.1% 3.7x 3.2x 11.3x 10.1x 18.7x 16.4x Netflix 28,795 27,981 10.7% 26.3% 5.1x 4.1x NM 32.0x NM NM Mail.ru 6,022 5,068 53.1% 10.0% 5.7x 4.7x 10.7x 9.0x 17.3x 14.6x IAC 5,714 5,751 17.3% (0.1%) 1.9x 1.7x 11.0x 8.7x 30.0x 18.3x Mercadolibre 5,014 4,808 33.3% 7.2% 9.6x 8.2x 28.7x 24.5x NM 37.0x Groupon 4,210 3,340 8.5% 26.3% 1.0x 0.9x 12.4x 9.4x NM 30.5x Ocado 3,666 3,740 7.4% 22.6% 2.4x 2.0x 32.2x 23.9x NM NM Shutterfly 1,956 1,926 18.8% 17.7% 2.1x 1.8x 11.2x 9.0x NM NM Vistaprint 1,534 1,935 14.3% 14.7% 1.4x 1.2x 9.7x 7.5x 14.1x 11.5x YOOX 1,405 1,409 10.3% 11.9% 2.0x 1.6x 19.3x 15.0x NM NM Digital River 483 226 13.9% (2.8%) 0.6x 0.6x 4.3x 3.9x 33.1x 22.8x Overstock 418 316 2.4% 10.6% 0.2x 0.2x 9.3x 7.4x 34.1x 20.4x Blue Nile 345 306 4.7% 4.1% 0.6x 0.6x 13.7x 12.5x 33.8x 29.0x Mean 19.1% 17.0% 3.4x 2.8x 16.4x 14.1x 25.9x 24.7x Median 12.3% 13.9% 1.9x 1.7x 12.4x 11.3x 30.0x 22.8x Online Travel Priceline 67,002 61,645 39.8% 26.1% 7.2x 5.9x 18.1x 14.6x 24.3x 19.7x Amadeus 16,589 18,600 38.8% 5.0% 4.2x 3.9x 10.7x 10.1x 18.4x 17.2x Tripadvisor 14,563 14,278 39.2% 32.6% 11.5x 9.2x 29.3x 22.5x NM 36.6x Expedia 11,096 10,577 17.9% 20.9% 1.8x 1.6x 10.3x 8.9x 21.9x 18.6x Ctrip 8,852 8,563 12.4% 36.0% 7.2x 5.4x NM 30.2x NM 36.7x Orbitz 943 1,130 16.6% 11.5% 1.2x 1.1x 7.3x 6.5x 38.3x 19.4x Travelzoo 257 196 16.3% (5.4%) 1.3x 1.2x 8.0x 7.1x 18.8x 16.1x

Mean 25.9% 18.1% 4.9x 4.1x 14.0x 14.3x 24.4x 23.5x Median 17.9% 20.9% 4.2x 3.9x 10.5x 10.1x 21.9x 19.4x Online Marketing HomeAway 3,120 2,645 26.9% 30.3% 5.9x 4.9x 21.9x 19.0x NM NM Conversant 1,721 1,703 33.9% 7.9% 2.8x 2.5x 8.1x 7.3x 15.2x 13.7x Constant Contact 1,000 859 18.2% 15.9% 2.6x 2.3x 14.3x 11.5x 30.7x 24.6x Marchex 387 312 8.2% 27.7% 1.6x 1.5x 19.9x 16.8x NM 35.4x 1000mercis 183 127 24.1% 6.9% 2.2x 1.9x 8.9x 6.4x 16.3x 13.8x Hi-Media 166 70 5.9% (8.0%) 0.3x 0.3x 5.1x 5.4x 21.1x 36.1x TradeDoubler 51 32 2.1% (22.2%) 0.1x 0.1x 6.2x 3.3x NM 10.7x Mean 17.1% 8.4% 2.2x 1.9x 12.0x 10.0x 20.8x 22.4x Median 18.2% 7.9% 2.2x 1.9x 8.9x 7.3x 18.7x 19.2x Content Providers / Communities Twitter 27,894 25,999 17.9% 112.0% 19.2x 11.5x NM NM NM NM LinkedIn 27,827 25,465 25.6% 43.5% 11.7x 8.8x NM 31.8x NM NM Pandora Media 5,658 5,333 6.2% 43.5% 5.9x 4.5x NM NM NM NM WebMD Health 1,869 2,040 27.1% 12.6% 3.5x 3.2x 13.0x 10.8x 36.0x 31.0x Perform Group 851 770 18.3% 22.2% 1.9x 1.7x 10.1x 8.3x 19.2x 14.4x XING 676 601 28.2% 11.1% 4.7x 4.2x 16.7x 12.8x 38.2x 27.7x Move 644 611 10.9% 11.2% 2.4x 2.1x 22.2x 15.3x NM 31.6x XO Group 321 242 11.9% 3.3% 1.7x 1.6x 14.5x 12.2x NM NM Demand Media 174 116 15.1% (30.3%) 0.4x 0.7x 2.8x 3.2x NM NM Mean 17.9% 25.5% 5.7x 4.3x 13.2x 13.5x 31.1x 26.2x Median 17.9% 12.6% 3.5x 3.2x 13.7x 12.2x 36.0x 29.3x

Sources: Capital IQ, 25 August 2014; Brokers’ reports 9 Internet and Digital Media (Continued)

Market Enterprise CY2014E EV / Revenue EV / EBITDA P / E Cap ($m) Value ($m) EBITDA Margin Growth CY2014E CY2015E CY2014E CY2015E CY2014E CY2015E

Intermediation and Comparison Zillow 5,883 5,525 16.5% 65.9% 17.1x 12.5x NM NM NM NM Moneysupermarket 1,753 1,787 37.4% 6.1% 4.5x 4.2x 12.0x 11.1x 16.4x 15.5x Bankrate 1,545 1,666 25.2% 20.7% 3.0x 2.7x 12.0x 10.2x 21.6x 18.2x Angie's List 475 434 0.0% 29.4% 1.4x 1.1x NM 15.9x NM NM Liquidity Services 452 395 13.7% (2.5%) 0.8x 0.9x 6.0x 7.3x 13.7x 16.8x eHealth 416 346 8.6% 5.1% 1.8x 1.6x 21.5x 13.8x NM NM Gruppo MutuiOnline 239 235 20.1% 20.2% 2.7x 2.4x 13.6x NA 23.3x 16.4x Mean 17.4% 20.7% 4.5x 3.6x 13.0x 11.7x 18.8x 16.7x Median 16.5% 20.2% 2.7x 2.4x 12.0x 11.1x 19.0x 16.6x Online Classifieds SouFun 4,893 4,547 47.7% 17.6% 6.2x 5.1x 13.0x 10.4x 17.8x 13.6x SEEK 5,364 5,965 43.2% 21.1% 8.1x 7.1x 18.8x 15.6x 28.2x 24.3x Yelp 5,882 5,531 18.4% 63.4% 14.8x 10.1x NM NM NM NM Rightmove 4,038 4,028 72.8% 18.5% 14.8x 13.3x 20.3x 18.0x 26.7x 23.0x Carsales.au 2,539 2,678 57.4% 21.7% 10.9x 9.3x 18.9x 16.4x 26.4x 22.9x 51job 2,062 1,560 32.5% 13.9% 5.1x 4.5x 15.8x 13.5x 20.7x 18.7x Monster 519 692 12.6% (3.4%) 0.9x 0.9x 7.1x 6.5x 23.8x 18.3x Dice 461 558 31.5% 25.0% 2.1x 2.0x 6.8x 6.6x 18.5x 16.4x Mean 39.5% 22.2% 7.9x 6.5x 14.4x 12.4x 23.1x 19.6x Median 37.9% 19.8% 7.2x 6.1x 15.8x 13.5x 23.8x 18.7x Chinese Internet Leaders Tencent 156,254 153,798 42.6% 30.4% 11.9x 9.7x 27.9x 22.6x NM 29.6x Baidu 75,097 71,457 33.4% 52.0% 9.1x 6.5x 27.2x 19.0x 35.1x 25.6x Netease 11,406 8,424 45.3% 18.1% 4.6x 3.9x 10.2x 8.4x 14.4x 12.3x SouFun 4,893 4,547 47.7% 17.6% 6.2x 5.1x 13.0x 10.4x 17.8x 13.6x Youku Tudou 3,976 2,342 0.3% 30.8% 3.6x 2.6x NM 24.0x NM NM Sina 3,075 1,841 4.7% 19.1% 2.4x 1.9x NM 15.1x NM 30.0x Sohu 2,358 1,979 (3.8%) 19.1% 1.2x 1.0x NM 11.1x NM NM Dangdang 1,204 943 2.1% 28.7% 0.7x 0.6x 34.6x 18.9x NM 29.9x Renren 1,160 175 (104.9%) (44.6%) 1.8x 1.0x NM NM NM NM Taomee 172 62 2.5% 6.5% 1.2x 1.0x NM 21.5x NM NM Jiayuan 171 77 7.9% 20.5% 0.8x 0.7x 10.1x 5.4x 27.9x 12.4x Mean 7.1% 230.8% 4.0x 3.1x 20.5x 15.6x 23.8x 21.9x Median 4.7% 19.1% 2.4x 1.9x 20.1x 15.9x 22.8x 25.6x Online Gambling Playtech 3,215 2,480 43.4% 7.7% 4.5x 4.3x 10.4x 9.9x 15.3x 14.8x Betfair 1,866 1,519 22.0% 7.7% 2.2x 2.1x 10.1x 10.4x 22.4x 22.6x bwin.party digital entertainment 1,098 917 16.9% (6.6%) 1.0x 1.0x 6.2x 5.5x 12.9x 11.9x 888 763 644 19.3% 7.9% 1.5x 1.4x 7.8x 9.3x 14.4x 16.7x Mean 25.4% 4.2% 2.3x 2.2x 8.6x 8.8x 16.3x 16.5x Median 20.6% 7.7% 1.9x 1.8x 9.0x 9.6x 14.8x 15.7x Interactive Entertainment Activision 16,595 16,712 33.9% 10.9% 3.5x 3.5x 10.3x 9.8x 17.5x 16.2x Electronic Arts 11,929 10,199 25.9% (1.8%) 2.5x 2.3x 9.5x 9.2x 18.6x 16.7x Zynga 2,759 2,032 7.5% (21.1%) 3.0x 2.4x 39.4x 17.3x NM NM Take-Two Interactive Software 1,864 1,482 22.3% 96.2% 0.6x 0.6x 2.8x 2.8x 9.7x 23.2x Ubisoft Entertainment 1,774 1,794 35.5% 43.2% 0.9x 0.9x 2.6x 2.1x 21.9x 10.9x Mean 25.0% 25.5% 2.1x 1.9x 12.9x 8.2x 16.9x 16.8x Median 25.9% 10.9% 2.5x 2.3x 9.5x 9.2x 18.0x 16.5x

Sources: Capital IQ, 25 August 2014; Brokers’ reports 10 TMT Group Overview and Disclosures

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