European Technology Media & Monitor

Market and Industry Update H1 2013

Piper Jaffray European TMT Team:

Eric Sanschagrin Managing Director Head of European TMT [email protected] +44 (0) 207 796 8420

Jessica Harneyford Associate [email protected] +44 (0) 207 796 8416

Peter Shin Analyst [email protected] +44 (0) 207 796 8444

Julie Wright Executive Assistant [email protected] +44 (0) 207 796 8427 TECHNOLOGY, MEDIA & TELECOMMUNICATIONS MONITOR Market and Industry Update Selected Piper Jaffray H1 2013 TMT Transactions

TMT Investment Banking Transactions

Date: June 2013 $47,500,000 Client: IPtronics A/S Transaction: , Ltd. signed a definitive agreement to acquire IPtronics A/S from Creandum AB, Sunstone Capital A/S and others for $47.5 million in cash. Pursuant to the Has Been Acquired By transaction, IPtronics’ current location in Roskilde, Denmark will serve as Mellanox’s first research and development centre in Europe and IPtronics A/S will operate as a wholly-owned indirect subsidiary of Mellanox Technologies, Ltd. Client Description: Mellanox Technologies Ltd. is a leading supplier of end-to-end InfiniBand and June 2013 Ethernet interconnect solutions and services for servers and storage. PJC Role: Piper Jaffray acted as exclusive financial advisor to IPtronics A/S.

Date: May 2013 $46,000,000 Client: inContact, Inc. (NasdaqCM: SAAS) Transaction: inContact closed a $46.0 million follow-on offering of 6,396,389 shares of common stock, priced at $7.15 per share. Client Description: inContact, Inc. provides cloud contact center solutions. PJC Role: Piper Jaffray acted as bookrunner for the offering. Follow-On Offering

May 2013

Date: April 2013 $97,000,000 Client: Rally Software Development Corp. (NYSE: RALY) Transaction: Rally Software Development Corp. completed a $46 million initial public offering of 6 million shares of common stock at $14.00 per share. Client Description: Rally Software Development Corp. provides cloud-based solutions for managing Agile software development activities worldwide. Initial Public Offering PJC Role: Piper Jaffray acted as bookrunner for the offering. April 2013

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TMT Investment Banking Transactions (Cont’d)

Date: March 2013 $307,000,000 Client: Epocrates,Inc. (NasdaqGS: EPOC) Transaction: athenahealth, Inc. signed a definitive agreement to acquire Epocrates, Inc. from a group of investors for $307 million in cash on January 7, 2013. Athenahealth will acquire all Has Been Acquired By outstanding shares and options of Epocrates at an offer per share of $11.75. Athenahealth intends to finance the transaction using available cash and funds available from its existing credit facility. Client Description: Epocrates, Inc. provides subscriptions for mobile drug reference tools and electronic health records to healthcare professionals, and interactive services to the healthcare March 2013 industry. PJC Role: Piper Jaffray acted as sole financial adviser to Epocrates.

Date: March 2013 $120,000,000 Client: Model N, Inc. (NYSE: MODN) Transaction: Model N, Inc. completed a $120 million initial public offering of 6.74 million shares of common stock at $15.50 per share. Client Description: Model N, Inc. provides revenue management solutions for the life science and technology industries. It develops applications, such as managed care and government pricing for Initial Public Offering life science companies; and channel incentives based on design wins for technology companies. PJC Role: Piper Jaffray acted as underwriter for the offering. March 2013

Date: January 2013 $82,500,000 Client: NDS Surgical Imaging, LLC Transaction: GSI Group Inc. acquired NDS Surgical Imaging, LLC from NDSSI Holdings LLC, Fifth Street Capital LLC, Riverside Fund III, L.P. of Riverside Partners LLC and other investors for $82.5 Has Been Acquired By million in cash on January 15, 2013. Client Description: NDS Surgical Imaging, LLC engages in design and manufacture of medical imaging and informatics systems for operative and interventional suites. It offers surgical and interventional solutions, such as visualization and informatics products; radiology solutions; patient January 2013 and bedside monitoring solutions, such as touch monitors. PJC Role: Piper Jaffray acted as exclusive financial advisor to NDS.

3 This report may not be reproduced, redistributed or passed to any other person or published in whole or in part for any purpose without the written consent of Piper Jaffray. © 2013 Piper Jaffray Ltd. All rights reserved. TECHNOLOGY, MEDIA & TELECOMMUNICATIONS MONITOR Market and Industry Update Contents

1. Internet and Digital Media A. Trading Update B. Transaction Update C. Industry News D. Public Market Trading Multiples

2. Software and IT Services A. Trading Update B. Transaction Update C. Industry News D. Public Market Trading Multiples

3. Communications Technology & Hardware A. Trading Update B. Transaction Update C. Industry News D. Public Market Trading Multiples

4 This report may not be reproduced, redistributed or passed to any other person or published in whole or in part for any purpose without the written consent of Piper Jaffray. © 2013 Piper Jaffray Ltd. All rights reserved. TECHNOLOGY, MEDIA & TELECOMMUNICATIONS MONITOR Market and Industry Update 1 - Internet and Digital Media

A - Trading Update

Sub-sector performance – Last Three Months: Sub-sector performance – Last 12 Months:

Sector 3M Sector LTM

Online Content 32.7% Online Content 180.2% Online Travel 22.7% Vertical marketplaces - Employment services 79.9% Vertical marketplaces - Real Estate 11.5% Chinese Internet Leaders 9.2% Global Internet Leaders 68.2% Other vertical marketplaces 8.4% Online Marketing / Advertising 63.8% Global Internet Leaders 8.0% Vertical marketplaces - Real Estate 51.3% Online 6.6% Other vertical marketplaces 29.6% Online Gambling 26.7% Online Gambling 5.4% Vertical marketplaces - Employment Online Retail 21.3% services 2.0% Online Travel 14.0% Online Marketing / Advertising (22.0%) Chinese Internet Leaders (7.3%) NASDAQ Comp 3.4% S&P 500 17.6% DJIA 1.7% NASDAQ Comp 16.4% S&P 500 1.9% DJIA 16.0%

Note: For composition of indices, see Public Market Trading Multiples section

Top 5 Price Performers – Last Three Months: Top 5 Price Performers – Last 12 Months:

Company % change Company % change

Overstock 121.5% Overstock 255.8% Ctrip.com 58.2% Blinkx 227.5% Perfect World Co 46.6% Netflix 179.6% Blinkx 43.5% Asos 131.0% Groupon 40.1% Ctrip.com 126.2%

Top 5 Price Underperformers – Last Three Months: Top 5 Price Underperformers – Last 12 Months: Company % change Company % change Velti (26.8%) Velti (74.4%) Sportech (20.0%) Zynga (43.9%) Bwin.party Digital Entertainmen (19.4%) Monster Worldwide (30.3%) Valueclick (18.6%) Demand Media (19.3%) Zynga (14.5%) Facebook (16.9%)

Source: Capital IQ 5 This report may not be reproduced, redistributed or passed to any other person or published in whole or in part for any purpose without the written consent of Piper Jaffray. © 2013 Piper Jaffray Ltd. All rights reserved. TECHNOLOGY, MEDIA & TELECOMMUNICATIONS MONITOR Market and Industry Update 1 - Internet and Digital Media

B - Transaction Update Selected European ECM Transactions – H1 2013

Offering Target Amount Offering Date Target Location ($MM) Deal Type Description Target Description 17-Apr-2013 CDON Group AB 79 Follow-On Common Stock Online retailer

11-Mar-2013 Yandex NV Netherlands 552 Follow-On Common Stock Internet search engine

27-Feb-2013 Mail.ru Group Russia 532 Follow-On Common Stock Online communications products

06-Feb-2013 Tomorrow Focus AG Germany 26 Follow-On Common Stock Internet media

Number of Deals 4 Average Value ($MM) 297 Total Value ($MM) 1,189

Note: Offerings over $10 million where the issuer is headquartered in Europe

Source: Capital IQ, Strategy Eye, Thomson Reuters, Company data 6 This report may not be reproduced, redistributed or passed to any other person or published in whole or in part for any purpose without the written consent of Piper Jaffray. © 2013 Piper Jaffray Ltd. All rights reserved. TECHNOLOGY, MEDIA & TELECOMMUNICATIONS MONITOR Market and Industry Update 1 - Internet and Digital Media

B - Transaction Update Selected European M&A Transactions – H1 20130

Deal Trans. Multiples Target Acquirer Value EV / EV / Date Target Location Acquirer Location ($MM) Sales EBITDA Target Description

21-May-2013 Markit Group Ltd UK Temasek Holdings Ltd 500 N/A N/A Online financial information services

17-May-2013 Acquity Group Ltd US Accenture Holdings BV Netherland 316 2.0x 13.9x E-commerce and digital marketing services 07-May-2013 Hosting Internet Telecity Group plc UK 45 N/A N/A Internet and infrastructure services Hizmetleri San Tic Ltd Sti 19-Mar-2013 freenet AG Germany Bank of America NA US 318 0.8x 7.6x Internet services

01-Mar-2013 Softonic International SL Spain Partners Group Holding Germany 108 N/A N/A Website for software downloads AG 25-Feb-2013 Ellos AB And Jotex AB Sweden Nordic Capital Sweden 718 N/A N/A Online retail store

22-Feb-2013 Dailymotion SA France France Telecom France 168 N/A N/A Web video portal

19-Feb-2013 Webhelp TSC UK Webhelp SA France 120 N/A N/A Online multichannel campaign management 24-Jan-2013 Global Betting Exchange Ireland Ladbrokes plc UK 40 N/A N/A Online sports betting platform Ltd 02-Jan-2013 Cerved Group SpA Italy CVC Capital Partners Ltd UK 1,491 N/A N/A Online business information solutions

Median 1.4x 10.8x Mean 1.4x 10.8x

Number of Deals 10 Average Value ($MM) 382 Total Value ($MM) 3,824

Note: M&A transactions over $40 million where either party is headquartered in Europe

Source: Capital IQ, Strategy Eye, Thomson Reuters, Company data 7 This report may not be reproduced, redistributed or passed to any other person or published in whole or in part for any purpose without the written consent of Piper Jaffray. © 2013 Piper Jaffray Ltd. All rights reserved. TECHNOLOGY, MEDIA & TELECOMMUNICATIONS MONITOR Market and Industry Update 1 - Internet and Digital Media

B - Transaction Update Selected European Private Equity and Venture Capital Activity – H1 2013

Deal Target Value Date Target Location ($MM) Investor(s) Target Description 01-Jul-2013 Deliver Hero Holding GmbH Germany 50 Kite Ventures; Phenomen Online food ordering Ventures; Team Europe; Tengelmann Ventures; Holtzbrinck Ventures; Point Nine Capital; Kreos Capital 21-Jun-2013 ZenPay UK Ltd UK 15 Rocket Internet GmbH Online and mobile payment platform 19-Jun-2013 Lazada Singapore 100 Tengelmann Ventures Online retailer GmbH; Investment AB Kinnevik; Summit Partners; Holtzbrinck Ventures GmbH; Verlinvest S.A.; JPMorgan Chase & Co 14-Jun-2013 El Armario de la Tele SL Spain 12 Bonsai Venture Capital S.A., Online retailer SCR; Attitude Asesores, Agencia de Valores, S.A.; Atresmedia Corporación de Medios de Comunicación, S.A. 13-Jun-2013 Bohemian Wrappsody AB Sweden 15 Greylock Partners; B2B online platform American Express Co; QUALCOMM Ventures; SEB Venture Capital; Creandum AB; Atomico Investment Holdings Ltd 10-Jun-2013 Lamoda Russia 130 Access Industries; Summit Online fashion retailer Partners; Tengelmann Ventures 04-Jun-2013 LeanWorks Ltd UK 12 Wellington Partners App for last minute ticket booking Venture Capital GmbH; General Catalyst Partners; Octopus Investments Ltd; Grade- A Investments 02-Jun-2013 WorldStores Ltd UK 15 Advent Venture Partners; Online retailer Balderton Capital; Serena Capital

02-Jun-2013 HitFox AppLift GmbH Germany 13 Prime Ventures Mobile affiliate network 28-May-2013 XLR Group Ltd Israel 300 Moscow Seed Fund Web-platform for online search 22-May-2013 Zalora () Co Ltd Thailand 100 Summit Partners; Online fashion and lifestyle retailer Investment AB Kinnevik; Verlinvest S.A.; Rocket Internet GmbH; Tengelmann Ventures GmbH 22-May-2013 Interlude Israel 16 Sequoia Capital Israel; Web video portal Innovation Endeavors; Capital; Marker LLC; New Enterprise Associates

(1) Private placements over $10 million and financial sponsor deals where issuer/target is headquartered in Europe (2) Firms in bold are the lead investors in the financing round (where disclosed)

Source: Capital IQ, Strategy Eye, Thomson Reuters, Company data 8 This report may not be reproduced, redistributed or passed to any other person or published in whole or in part for any purpose without the written consent of Piper Jaffray. © 2013 Piper Jaffray Ltd. All rights reserved. TECHNOLOGY, MEDIA & TELECOMMUNICATIONS MONITOR Market and Industry Update 1 - Internet and Digital Media

B - Transaction Update Selected European Private Equity and Venture Capital Activity – H1 2013

Deal Target Value Date Target Location ($MM) Investor(s) Target Description 22-May-2013 Dailymotion SA France 64 France Télécom SA Web video portal 22-May-2013 Urturn UK 13 Debiopharm Group; Online tool that enables users to see, like, and Balderton Capital repost a post 20-May-2013 Reebonz PTE Ltd UK 40 Vertex Venture Holdings Online retailer for premium brands Ltd; Intel Capital; GGV Capital; Infocomm Investments Pte Ltd; Pte Ltd; Matrix Partners China 14-May-2013 Privalia Venta Directa SL Spain 32 General Atlantic LLC; Index Online sales club Ventures; Highland Capital Partners; Insight Venture Partners; Sofina Société Anonyme ; Nauta Capital; Caixa Capital Risc, SGECR, SA

10-May-2013 Swipely Inc US 12 Greylock Partners; Index Online platform of payment networks Ventures; Shasta Ventures; First Round Capital 09-May-2013 The Hut Group Ltd UK 16 Blue Coast Private Equity Multi-website online retailer LP 07-May-2013 ResearchGATE GmbH Germany 20 Byers; Lightspeed Venture Social network for scientists and researchers Partners 07-May-2013 Foodpanda Germany 20 Investment AB Kinnevik ; Online and mobile food ordering platforms Rocket Internet GmbH; Phenomen Ventures 30-Apr-2013 ClickTale Ltd UK 17 Amadeus Capital Partners Analytical services website Ltd; Goldrock Capital; VPartners

22-Apr-2013 Fab Inc US 300 Atomico Investment Online retailer for design products Holdings Ltd 22-Apr-2013 Shapeways Inc US 30 Index Ventures; Lux Capital Online marketplace for 3D printing Management; Union Square Ventures; Andreessen Horowitz

17-Apr-2013 ResearchGATE GmbH Germany 35 Benchmark Capital; The Social network for scientists and researchers Founders Fund; Tenaya Capital; Thrive Capital; Dragoneer Investment Group, LLC 02-Apr-2013 ISA Auctionata AG Germany 20 Holtzbrinck Ventures Online platform and auction house for art Gmbh, Bright Capital LLC, e.ventures, Earlybird Venture Capital GmbH & Co KG,, Kite Ventures, Raffay & Cie GmbH, TA Venture

(1) Private placements over $10 million and financial sponsor deals where issuer/target is headquartered in Europe (2) Firms in bold are the lead investors in the financing round (where disclosed)

Source: Capital IQ, Strategy Eye, Thomson Reuters, Company data 9 This report may not be reproduced, redistributed or passed to any other person or published in whole or in part for any purpose without the written consent of Piper Jaffray. © 2013 Piper Jaffray Ltd. All rights reserved. TECHNOLOGY, MEDIA & TELECOMMUNICATIONS MONITOR Market and Industry Update 1 - Internet and Digital Media

B - Transaction Update Selected European Private Equity and Venture Capital Activity – H1 2013

Deal Target Value Date Target Location ($MM) Investor(s) Target Description 31-Mar-2013 Music Mastermind Inc US 20 Intel Capital; Liberty Global Cloud-based platform to create and share music Ventures 27-Mar-2013 Ostrovok.ru Russia 25 Summit Partners; Accel Travel booking website Management Co, Inc; Frontier Ventures; General Catalyst Partners 26-Mar-2013 Lesson Nine GmbH Germany 10 IBB e-learning Beteiligungsgesellschaft; KIZOO; Technology Ventures; Growth Partners; Reed Elsevier Ventures 25-Mar-2013 Fanzy SAS France 15 Kima Ventures; Orefa Facebook applications Investment; Start/Capital 20-Mar-2013 Prime HealthChakra Private Ltd UK 14 Sequoia Capital; Intel Capital E-Health store 20-Mar-2013 ShareThis Inc US 23 Blue Chip Venture Social sharing solutions for publishers, advertisers, Company, Ltd; Draper Fisher agencies, and consumers Jurvetson; T-Venture Holding GmbH; RPM Ventures; IllinoisVENTURES, LLC; Mercury Fund; Matthew Pritzker Company 20-Mar-2013 Indochino Apparel Inc US 13 Highland Capital Partners; Online retailer for men’s wear Madrona Venture Group; Acton Capital Partners GmbH 14-Mar-2013 Oktogo.ru Russia 11 Mangrove Capital Partners; Travel website Ventech, Victor Sazhin Group; VTB Capital 12-Mar-2013 auxmoney GmbH Germany 12 Index Ventures; Union Square Online portal for peer to peer money lending Ventures 06-Mar-2013 Jumia Nigeria 26 Summit Partners Online retailer

06-Mar-2013 Innovid Inc US 11 Sequoia Capital; T-Venture Online video solution for advertisers and publishers Holding GmbH; Genesis Partners Ltd; Vintage Investment Partners 03-Mar-2013 Farfetch.com Ltd UK 20 Advent Venture Partners; Online marketplace for indipendent fashion e.ventures; Index Ventures; boutiques Advance Magazine Publishers Inc 01-Mar-2013 1855 SA France 10 Aphrodite SAS Online wine retailer

26-Feb-2013 Windeln.de GmbH Germany 20 360 Capital Partners; Acton Marketplace for diapers Capital Partners; DN Capital; MCI Management 14-Feb-2013 Paymill GmbH Germany 5 Blumberg Capital Online payment platform

(1) Private placements over $10 million and financial sponsor deals where issuer/target is headquartered in Europe (2) Firms in bold are the lead investors in the financing round (where disclosed)

Source: Capital IQ, Strategy Eye, Thomson Reuters, Company data 10 This report may not be reproduced, redistributed or passed to any other person or published in whole or in part for any purpose without the written consent of Piper Jaffray. © 2013 Piper Jaffray Ltd. All rights reserved. TECHNOLOGY, MEDIA & TELECOMMUNICATIONS MONITOR Market and Industry Update 1 - Internet and Digital Media

B - Transaction Update Selected European Private Equity and Venture Capital Activity – H1 2013

Deal Target Value Date Target Location ($MM) Investor(s) Target Description 11-Feb-2013 RepairPal Inc US 13 Cars.com; Castrol Online database of articles, reports, and references InnoVentures for auto repair 11-Feb-2013 Linio.mx Mexico 53 Summit Partners; Online shopping mall Tengelmann Ventures GmbH 05-Feb-2013 Hailo UK 30 Accel Partners; Atomico; Taxi booking app Felicis Ventures; KDDI Corporation; Phenomen Ventures; Red Swan Ventures; Union Square 25-Jan-2013 StyleHaul Inc US 13 Bertelsmann Digital Media Online video community Investments; RTL Group SA, Asset Management Arm; Siemer Ventures; RezVen Partners LLC

14-Jan-2013 The Hut Group Ltd UK 14 Artemis Fund Managers Multi-website online retailer Limited; River Island Clothing Co, Ltd 11-Jan-2013 Mister Spex GmbH Germany 21 Scottish Equity Partners Online eyewear retailer LLP; DN Capital Limited; Xange Private Equity, SA 10-Jan-2013 Zalora (Thailand) Co Ltd Thailand 26 Tengelmann Ventures Online fashion and lifestyle retail marketplace GmbH 07-Jan-2013 GetYourGuide Switzerland 14 Highland Capital Partners; Travel marketplace Spark Capital 07-Jan-2013 Paymill GmbH Germany 13 Holtzbrinck Ventures Online and mobile payment platform Gmbh; Sunstone Capital A/S Number of Deals 49 Average Value ($MM) 37 Total Value ($MM) 1,830

(1) Private placements over $10 million and financial sponsor deals where issuer/target is headquartered in Europe (2) Firms in bold are the lead investors in the financing round (where disclosed)

Source: Capital IQ, Strategy Eye, Thomson Reuters, Company data 11 This report may not be reproduced, redistributed or passed to any other person or published in whole or in part for any purpose without the written consent of Piper Jaffray. © 2013 Piper Jaffray Ltd. All rights reserved. 1 - Internet and Digital Media

C - Industry News

Emerging markets driving e-commerce as growth in US and Europe slows 27th June 2013, written by StrategyEye Consumers in emerging markets will drive spending in the global e-commerce market to more than USD1.2 trillion this year, as growth in mature regions such as the US and Western Europe begin to slow. New figures from eMarketer forecast China’s e-commerce sales will increase 65% and ’s will soar 71% this year, helping drive growth in the Asia-Pacific region up 23%. This comes in well above the global average of 17%. Overall the blurring of offline and online commerce as consumers become more comfortable spending on the internet will drive retail sales to nearly USD1.9 trillion by 2016.

The small proportion of internet users in many emerging markets that actually buy goods and services online means that there is still plenty of room for growth, says eMarketer, predicting that spend increases in these regions are set to continue. Also, the comparative low penetration of internet users generally among the populations of these regions means that there is even more room for growth. eMarketer forecasts penetration of shoppers among internet users in Asia-Pacific will hit 44.6% this year, climbing to 54.2% by 2017.

Investors are not overlooking the yawning e-commerce opportunity in emerging markets. In the last month alone, Lazada, a South East Asian e-commerce site from the Rocket Internet incubator, raised USD100m. Lazada operates across Indonesia, , the Philippines, Thailand and Vietnam where the e-commerce opportunity is big, but the market is yet to mature. Meanwhile, online retailer Jumia, which focuses on emerging markets, raised USD35m. The online retailer sells a wide variety of goods that include from mobile phones, sunglasses, games consoles and cigarettes. The company, which launched last year, is based in Nigeria, but also active in Morocco and Egypt.

Google passes Apple as most valuable technology company by enterprise value 27th June 2013, written by StrategyEye has overtaken arch nemesis Apple as the world’s largest technology company in terms of enterprise value. Overall Apple’s valuation remains higher than its search rival at USD378bn compared to Google’s USD286bn market cap. However, once each company’s cash is subtracted, USD24bn from Google and USD145bn from Apple, the Android developer comes out on top with an operational value of USD241bn against Apple’s USD233bn. This view of the stats is believed by some to be a more accurate way of determining the actual worth of the companies’ operations.

The news follows a tough few month for Apple, with its share price falling below USD400 in April for the first time since 2011 driven by investor concerns over product sales and delayed releases. Since then Apple has handed over its title of the world’s largest company to oil titan Exxon Mobil, which currently has a market cap of around USD400bn. While the drop to the world’s second largest firm might have dealt minor damage to the iPhone maker’s pride, this latest figure news that its arch rival is closing in may be a cause for serious concern. Google’s Android OS accounts for an increasing share of shipments, while Google’s Play Store looks set to overtake Apple’s .

Mobile to drive more than a quarter of UK e-commerce by 2017 20th June 2013, written by StrategyEye Mobile transactions will account for more than a quarter of all online purchases made in the UK by 2017, up from 15% this year, as consumers become increasingly confident buying goods on and tablets. E-commerce on the whole is set to continue growing strongly in the UK, with online purchases accounting for 11% of the UK’s GBP383bn (USD600bn) retail market this year, a rise from last year’s 10.2%. The figures are the first ever UK-focused report and show that smartphone and tablet uptake is this year expected to drive GBP6.6bn (USD10.49bn) in sales, reaching GBP17.24bn (USD27.36bn) by 2017.

Social and mobile to drive global online ad spend to USD113bn this year 18th June 2013, written by StrategyEye Rapid growth in social and mobile ads will drive the global online ad market to USD113.6bn this year as brands and advertisers become more comfortable with new digital formats. The figure represents 13.4% year on year growth, according to the revised forecasts from media insight firm Magna Global. Search ads will continue to provide the largest share of revenue, with spend topping USD52bn in 2013, or 45.7% of the total, a 14.6% year-on-year rise. But it is mobile’s growth that is outstripping the rest of the market, with spend set to increase 54% year on year to USD12bn, or 10.6% of overall spend. Social ad formats from the likes of Facebook and Twitter will experience similarly strong growth, hitting USD8.2bn up 39.6% year on year, according to Magna.

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C - Industry News

Digital to dominate global entertainment revenues by 2015 11th June 2013, written by StrategyEye Digital will overtake traditional revenues at most entertainment and media (M&E) companies by 2015, as consumers and advertisers alike shift away from physical content and services to focus on online. A new report from Ernst & Young claims 550 senior execs globally believe 57% of revenues will be coming from digital in two years’ time, up from 47% in 2013 to make it the primary revenue driver for M&E companies. The report includes advertising, publishing, broadcast and cable, gaming, IT, music, social media and filmed entertainment companies in its prediction.

The forecast highlights the growing willingness among consumers to spend money on digital entertainment, as the popularity of legal downloads and subscription services gain mindshare among internet users. The findings chime with slightly more conservative predictions from PwC, which expects digital to account for nearly half of global spend on entertainment and media in 2017. Last year, digital revenues (made up of consumer spend on digital content, digital ad spend and spend on internet access) accounted for 35% of the total USD1.7 trillion spent globally on entertainment and media, but this figure will rise to 47% by 2017.

One in three online consumers visit when buying 5th June 2013, written by StrategyEye One in three online consumers uses Amazon at some point during the purchase process when buying electronics goods. More broadly, the e-commerce giant appears in one in five consumer purchase journeys while buying either online or offline, according to a new study from GroupM. While the research only focuses on one commerce vertical, it illustrates Amazon’s increasingly dominance in retail and consumers’ purchase decisions. Of the consumers that include Amazon at some point during their purchase journey, 37% start at Amazon.com, while 35% end up at the site to purchase their goods. Some 6% of consumers start and finish their journey within Amazon.

The research comes as Amazon looks to broaden its footprint further, both geographically and in terms of its offerings. The firm is set to make a concerted push into perishable goods, expanding its online grocery service, dubbed AmazonFresh. Amazon would use the typically low margin division as a vehicle to push its higher margin products such as electronics at the same time. Meanwhile, Amazon is expanding into India, hoping to capitalise on the potentially lucrative, primarily mobile-based emerging market, which was worth USD14bn in 2012.

Mobile music streaming revenues to overtake download revenues this year 17th April 2013, written by StrategyEye Revenues from music streaming services on mobile devices will surpass that of track downloads this year, hitting USD1.7bn. The global figure marks a more than 40% year-on-year increase, according to the new report from Juniper Research, and illustrates the growth in adoption of services such as , Rdio and on smartphones and tablets. That growth will prove a boost to the firms with mobile access a core element of their premium tiers.

The revenue growth is driven by mobile network operators (MNO) bundling premium services into their mobile contract offerings. The partnerships are already gaining traction, notably in Sweden, with Telia bundling Spotify, and in Germany, where O2 has also integrated Spotify’s premium tier with its mobile contracts. The US will emerge as the largest market for MNO-streaming bundling, according to Juniper, which will boost the global market. And speaking to StrategyEye, independent music analyst Mark Mulligan suggests that tie-ups with MNOs is a key growth area for streaming services looking to drive up subscriber conversion rates.

With music streaming becoming increasingly important as a revenue stream on mobile, competition is set to intensify. And this will particularly be the case if Apple launches its much-hyped internet radio. Juniper believes the arrival of Apple in the space could drive down the price its rivals can charge for mobile access to their service. Currently the going rate is about USD10 a month. And although the firm is yet to confirm any such service, the latest reports claim that it is nearing licensing deals with the likes of Universal and Warner and is aiming for a June unveiling.

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C - Industry News

UK digital music licensing revenues overtake radio for first time 4th April 2013, written by StrategyEye Revenues generated by online music licensing have overtaken radio for the first time in the UK, boosted by new agreements with services such as and ’s . According to a new report from PRS for Music, digital licensing revenues grew by around a third year on year to hit GBP51.7m (USD77.9m), making online music plays the biggest source of income for artists, eclipsing events, pubs and now radio. The figures mean digital royalty revenues have roughly doubled over the past four years.

The figures highlight both the growing value of digital music services to artists and bands and the remarkable uptake of service such as Spotify and Deezer among consumers. According to reports, just less than a third of consumers globally are now using music streaming services, led by countries such as Norway where nearly half the population listens to music via streaming services. While adoption is slower in the UK, at around a fifth of consumers, this is set to increase over the coming years, as music listening moves online.

The firm attributes lower live event revenues to factors including the Glastonbury music festival not taking place, combined with the dominance of the 2012 Games over much of the British summer. PRS for Music estimates live event revenues dipped 14.2% last year to GBP19.3m (USD29.3m), but forecasts high-profile ticket events such as the Rolling Stones tour and the return of Glastonbury will help drive up revenues this year.

Online piracy not affecting digital music revenues, claims EU study 21st March 2013, written by StrategyEye Web piracy does not negatively impact legal sales of digital music, according to a report from the EU that flies in the face of previous research and has caused outrage within the industry. The study looked into the online habits of 16,000 Europeans over the course of a year and found that those who visited websites for pirated music were no more or less likely to also visit sites that offer legal music downloads. From this, it concluded that consumers that access pirated music would not necessarily have bought a legal version of the track or album online, therefore its effect on revenues is negligible.

The study also found that free music streaming sites such as Spotify, Pandora and Rdio are helping to boost revenues for the industry, although by how much remains open to debate. The research shows that if the number of clicks on legal streaming websites rises by 10%, clicks on legal downloads sites also increase by about 0.7%. Spotify has long argued that the free aspect of its service is crucial in giving consumers access to music and convincing them to upgrade to a paid-for account or to buy music. And the music industry does appear to be coming round to this idea, with Spotify recently getting rid of its five-track limit for free users in the UK in a bid to keep them engaged with the service.

In the study’s defence, it does not claim that pirating music has had no effect on the music industry. As highlighted in the report, previous research has typically focused on the effects of illegal downloads on sales of physical music, such as CDs. And with physical sales still making up the majority of music revenues in most markets, its overall impact on the industry “may well still be negative”. Nevertheless, the EU highlights that digital revenues are growing substantially, up 1,000% between 2004 and 2010 and increasing 8% globally in 2011 to USD5.2bn, reflecting the importance of online and suggesting that the space is growing despite the threat of piracy.

Tablets overtake smartphones for web traffic for first time 7th March 2013, written by StrategyEye Tablets have overtaken smartphones in terms of web traffic for the first time, according to the latest figures from Adobe, boosted by soaring device ownership and the availability of different models at varying price points. Adobe’s report, which includes data from the UK, US, China, Canada, , Japan, France and Germany, claims that tablets now represent 8% of page views, compared to smartphones with 7%. While the margin seems tiny, Adobe forecasts that tablet’s share of internet traffic will grow more rapidly than smartphones, arguing that their bigger screens make the devices better suited to browsing websites.

Mobile’s share of overall internet traffic remains relatively low for now, with desktops and laptops still accounting for 84% of page views, but this is set to change over the coming years. Adobe argues that tablets in particular will see a steep growth trajectory in terms of their share of page views, with internet users viewing up to 70% more pages browsing on a tablet than on a smartphone per visit. Certain online activities such as online shopping are driving internet use on tablets, claims Adobe, with users preferring to see goods on bigger screens.

Separate research from Forrester suggests tablet ownership in Europe is expected to increase significantly over the next few years, climbing from just 14% of internet users last year to more than half of the online population by 2017. This means the number of tablet owners in the region will have more than quadrupled from 33m last year to 147m by 2017, boosted by high penetration of the devices in countries such as the Netherlands, where a fifth of internet users own tablets. Forrester indicates that the availability of cheaper devices, such as Google’s Nexus 7 tablet, is driving adoption among younger users, as tablets emerge into the mainstream.

14 This report may not be reproduced, redistributed or passed to any other person or

published in whole or in part for any purpose without the written consent of Piper Jaffray. © 2013 Piper Jaffray Ltd. All rights reserved. 1 - Internet and Digital Media

C - Industry News

UK ecommerce sales per person lead all markets worldwide 7th March 2013, written by StrategyEye The UK has become one of the strongest digital commerce markets worldwide, as B2C ecommerce sales in the UK grew 14.4% to £77.35 billion ($124.76 billion) in 2012, up from £67.60 billion ($109.03 billion) in 2011, according to new figures from eMarketer. B2C ecommerce sales in the UK were nearly three times larger than those in the second-largest Western European market, Germany, last year, eMarketer estimates. This year, UK sales are expected to grow 13.4% to £87.75 billion ($141.53 billion), and account for nearly one-third of all B2C ecommerce sales in the region.

While the UK is a smaller market than the US, China and Japan, consumers in the UK continue to spend more money online, per person, than those in any other country worldwide, according to eMarketer. Among consumers who purchase goods via any digital channel, average B2C ecommerce sales in the UK rose to a world-leading $3,585 per person in 2012, up from $3,304 in 2011, eMarketer estimates—a result of strong demand for food and apparel goods among online consumers, as well as retailers’ strong online and mobile presence in the region.

Australia and Norway grabbed the No. 2 and 3 spots worldwide with average annual sales of $3,547 and $2,530, respectively, per person in 2012. The larger US market lags with just $2,293 in average sales per person last year. Average ecommerce sales per person across Western Europe are lower—reaching $1,738 in 2012, up from $1,597 the previous year—but poor economic conditions in the region are having a positive effect on ecommerce growth, as more consumers turn to the internet as a way to save money. In the case of Italy and Spain, where economic conditions are particularly fragile, growth in ecommerce sales topped all other Western European markets as the number of people who bought goods online in the two countries reached 11.7 million and 14.5 million, respectively, last year.

E-commerce sales top USD1 trillion for first time 6th February 2013, written by StrategyEye Consumer spending online hit a new record last year, surpassing USD1 trillion for the first time globally, according to a new report from eMarketer. Sales were up by more than a fifth year on year, driven by growth in the Asia-Pacific region, which is set to overtake North America as the biggest market for consumer e- commerce sales this year. eMarketer says the growth of e-commerce worldwide highlights the change in shopper mentality, as consumers increasingly shift from browsing goods in bricks-and-mortar stores to heading online in search of broader selections and lower prices.

Double-digit growth is expected to continue this year, with global revenues up 18.3% to USD1.298 trillion. Of that, Asia-Pacific will account for 33.4%, ahead of North America on 31.5% and Western Europe with 25.7%. E-commerce sales in Asia-Pacific increased by a third last year to hit USD332.46bn and are set to rocket another 30% in the next year to account for USD433bn, or more than a third, of global e-commerce sales in 2013. North America, on the other hand, is set to experience much slower growth, with sales up 13.9% last year to USD364.66bn and set to rise by 12.2% in 2013 to USD409.05bn.

By country, the US will remain the largest e-commerce market over the next four years. The region continues to see strong growth, with sales hitting USD343.43bn last year and forecast to increase to USD384.80bn in 2013. Nonetheless, the US’s share of global e-commerce sales is set to decrease from 31.5% in 2012 to 29.6% as growth fails to keep up with global increases as shoppers in China, Indonesia and India drive up spend worldwide. China will see the biggest growth, with the country set to leapfrog Japan as the world’s second-biggest country for online retail this year. China, which has the largest number of online shoppers in the world, at 220m, will see an estimated 65% growth in spending, well ahead of global increases and driven by a rapid increase in internet penetration. That equates to sales of USD181.62bn, representing 14% of global spending this year. By 2016, China will account for more than a fifth of online spending worldwide, with eMarketer saying the country is “fast closing the gap” on the US.

In Western Europe, the UK is leading growth, with eMarketer estimating sales grew three times faster than in closest competitor, Germany. This is because UK consumers spend more online per person than in any other country globally, at USD3,585 per person last year, just ahead of Australia on USD3,547 and Norway on USD2,530. As a whole, sales increased 14.4% to GBP77.35bn (USD124.76bn) last year and will increase a further 13.4% this year to represent nearly a third of spend in Western Europe.

15 This report may not be reproduced, redistributed or passed to any other person or published in whole or in part for any purpose without the written consent of Piper Jaffray. © 2013 Piper Jaffray Ltd. All rights reserved. 1 - Internet and Digital Media

D - Public Market Trading Multiples

Stock Revenues EBITDA EBITDA EBITDA Stock Price Market Enterprise EV / Revenue EV / EBITDA Revenues CAGR EBITDA Margin Margin Margin Company Price 30-Jun-13 Cap Value Dec- 12 Dec- 13 Dec- 14 Dec- 12 Dec- 13 Dec- 14 Dec- 12 Dec- 13 Dec- 14 2011- 14 Dec- 12 Dec- 13 Dec- 14 Dec- 12 Dec- 13 Dec- 14 Currency (Local Ccy) (USD m) (USD m) (USD m) (USD m) (USD m) (USD m)(USD m)(USD m) Global Internet Leaders Google Inc USD 880.37 292,253 247,294 4.9x 4.1x 3.5x 15.7x 11.3x 9.8x 50,175 60,310 70,524 23.0% 15,722 21,825 25,197 31.3% 36.2% 35.7% Microsoft Corp USD 34.54 288,489 228,201 3.0x 2.8x 2.6x 7.3x 6.8x 6.3x 76,246 81,845 87,472 6.8% 31,215 33,365 36,172 40.9% 40.8% 41.4% Amazon.com Inc USD 277.69 126,416 122,585 2.0x 1.6x 1.3x 43.2x 30.6x 24.2x 61,093 74,798 90,997 23.7% 2,835 4,006 5,072 4.6% 5.4% 5.6% Ebay Inc USD 51.72 67,122 62,136 4.4x 3.8x 3.3x 15.2x 11.4x 9.9x 14,028 16,317 19,022 17.7% 4,075 5,465 6,302 29.0% 33.5% 33.1% Facebook Inc USD 24.88 60,160 52,946 10.4x 7.9x 6.2x 44.6x 14.8x 11.5x 5,089 6,730 8,510 31.9% 1,187 3,585 4,601 23.3% 53.3% 54.1% Yahoo! Inc USD 25.13 27,207 24,239 4.9x 5.3x 5.2x 16.6x 14.6x 14.1x 4,987 4,531 4,671 (2.1%) 1,457 1,657 1,722 29.2% 36.6% 36.9% Mean 4.9x 4.3x 3.7x 23.8x 14.9x 12.6x #### 40,755 46,866 16.8% 9,415 #### #### 26.4% 34.3% 34.5% Median 4.6x 4.0x 3.4x 16.2x 13.0x 10.7x 20.3% 29.1% 36.4% 36.3% Online Retail Amazon.com Inc USD 277.69 126,416 122,585 2.0x 1.6x 1.3x 43.2x 30.6x 24.2x 61,093 74,798 90,997 23.7% 2,835 4,006 5,072 4.6% 5.4% 5.6% Ebay Inc USD 51.72 67,122 62,136 4.4x 3.8x 3.3x 15.2x 11.4x 9.9x 14,028 16,317 19,022 17.7% 4,075 5,465 6,302 29.0% 33.5% 33.1% Groupon Inc USD 8.55 5,677 4,511 1.9x 1.8x 1.6x 25.7x 15.6x 12.7x 2,334 2,548 2,831 20.7% 175 290 355 7.5% 11.4% 12.5% Asos Plc GBP 40.45 5,054 4,985 5.2x 4.0x 3.1x 62.4x 43.1x 33.2x 958 1,251 1,588 35.9% 80 116 150 8.3% 9.2% 9.5% Mercadolibre Inc USD 107.76 4,758 4,564 12.2x 9.7x 7.8x 32.9x 26.9x 21.3x 374 470 588 25.3% 139 169 214 37.1% 36.0% 36.5% Shutterfly Inc USD 55.91 2,123 1,959 3.1x 2.5x 2.2x 21.5x 13.5x 11.0x 641 771 895 23.7% 91 146 178 14.2% 18.9% 19.9% Vistaprint Nv USD 49.37 1,612 1,799 1.6x 1.5x 1.3x 14.0x 11.6x 9.8x 1,091 1,223 1,338 13.4% 128 155 184 11.8% 12.7% 13.7% Web.com Group Inc USD 25.60 1,273 1,959 4.8x 3.7x 3.4x 43.1x 12.8x 11.4x 408 531 581 42.9% 45 153 172 11.1% 28.9% 29.7% Yoox Spa EUR 16.51 1,233 1,222 2.5x 2.0x 1.6x 29.3x 22.0x 15.9x 489 611 760 26.2% 42 56 77 8.5% 9.1% 10.1% Overstock.com Inc USD 28.20 667 583 0.5x 0.5x 0.4x 20.6x 14.3x 11.6x 1,099 1,241 1,344 8.4% 28 41 50 2.6% 3.3% 3.7% Digital River Inc USD 18.77 662 325 0.8x 0.8x 0.8x 8.9x 8.4x 5.3x 386 400 407 0.7% 37 39 61 9.5% 9.6% 15.0% Blue Nile Inc USD 37.78 468 428 1.1x 0.9x 0.8x 27.3x 23.0x 19.0x 400 456 512 13.7% 16 19 23 3.9% 4.1% 4.4% Mean 3.4x 2.7x 2.3x 28.7x 19.4x 15.4x 6,942 8,385 10,072 21.0% 641 888 1,070 12.4% 15.2% 16.1% Median 2.3x 1.9x 1.6x 26.5x 15.0x 12.2x 22.2% 9.0% 10.5% 13.1% Vertical marketplaces - Employment services Linkedin Corp USD 178.30 23,029 22,199 22.8x 14.8x 10.5x NM 61.0x 40.3x 972 1,499 2,115 59.4% 137 364 551 14.1% 24.3% 26.0% Seek Ltd AUD 9.07 2,805 3,304 6.9x 5.2x 4.4x 16.7x 13.5x 11.3x 481 630 748 27.7% 198 245 294 41.1% 39.0% 39.2% 51job Inc USD 67.51 1,967 1,584 6.7x 6.0x 5.2x 18.9x 16.2x 13.4x 236 266 307 13.2% 84 98 118 35.6% 36.8% 38.6% Monster Worldwide Inc USD 4.91 572 610 0.7x 0.7x 0.7x 4.5x 4.2x 3.9x 890 832 841 (5.4%) 137 145 157 15.4% 17.4% 18.7% Dice Holdings Inc USD 9.21 551 540 2.8x 2.5x 2.4x 7.6x 7.1x 6.4x 195 213 229 8.6% 71 76 84 36.5% 35.6% 36.5% Xing Ag EUR 51.81 376 296 3.2x 2.8x 2.5x 11.6x 9.8x 7.9x 94 106 119 12.1% 25 30 37 27.2% 28.4% 31.4% Mean 7.2x 5.3x 4.3x 11.9x 18.6x 13.9x 478 591 727 19.3% 109 160 207 28.3% 30.2% 31.7% Median 4.9x 4.0x 3.5x 11.6x 11.6x 9.6x 12.6% 31.4% 32.0% 34.0% Vertical marketplaces - Real Estate

Rea Group Ltd AUD 27.53 3,319 3,128 11.2x 9.5x 8.4x 23.8x 19.2x 16.4x 279 328 374 16.6% 131 163 191 47.1% 49.5% 51.1% Rightmove Plc GBP 20.84 3,228 3,218 17.8x 15.6x 13.7x 25.2x 21.0x 18.1x 181 206 236 17.0% 128 153 177 70.5% 74.3% 75.3% Move Inc USD 12.82 511 481 2.4x 2.1x 1.9x 29.0x 26.5x 12.3x 199 225 254 9.8% 17 18 39 8.3% 8.1% 15.4% Mean 10.5x 9.1x 8.0x 26.0x 22.2x 15.6x 220 253 288 14.4% 92 111 136 42.0% 44.0% 47.2% Median 11.2x 9.5x 8.4x 25.2x 21.0x 16.4x 16.6% 47.1% 49.5% 51.1% Other vertical marketplaces Moneysupermarket.com Grou GBP 1.92 1,575 1,547 5.0x 4.5x 4.2x 16.6x 12.6x 11.4x 311 344 372 10.7% 93 122 136 29.9% 35.6% 36.5% Webmd Health Corp USD 29.37 1,465 1,266 2.7x 2.7x 2.5x 44.8x 14.2x 12.3x 470 476 504 (3.4%) 28 89 103 6.0% 18.7% 20.3% Ehealth Inc USD 22.72 442 329 2.1x 1.9x 1.7x 20.8x 16.9x 11.2x 155 174 196 9.0% 16 19 29 10.2% 11.2% 14.9% Meetic Sa EUR 12.08 366 283 1.3x 1.1x 1.3x 5.9x 4.6x 4.9x 214 262 223 (1.3%) 48 62 58 22.3% 23.6% 25.9% Gruppo Mutuionline Spa EUR 3.72 191 165 3.4x 2.9x 2.2x 30.9x 20.8x 9.8x 48 57 74 (7.3%) 5 8 17 11.1% 13.9% 22.5% Mean 2.9x 2.6x 2.4x 23.8x 13.8x 9.9x 240 263 274 1.5% 38 60 68 15.9% 20.6% 24.0% Median 2.7x 2.7x 2.2x 20.8x 14.2x 11.2x (1.3%) 11.1% 18.7% 22.5% Online Travel Priceline Com Inc USD 826.67 41,383 37,848 7.2x 5.7x 4.7x 20.0x 15.3x 12.4x 5,261 6,652 8,078 22.9% 1,895 2,472 3,047 36.0% 37.2% 37.7% Amadeus It Holding Sa EUR 24.55 14,286 16,172 4.3x 4.1x 3.8x 9.6x 10.8x 10.0x 3,783 3,958 4,219 5.6% 1,676 1,503 1,625 44.3% 38.0% 38.5% Tripadvisor Inc USD 60.87 9,506 9,491 12.4x 10.1x 8.3x 29.4x 24.9x 19.6x 763 936 1,145 21.6% 322 381 483 42.3% 40.7% 42.2% Expedia Inc USD 60.15 8,144 7,741 1.9x 1.6x 1.4x 12.3x 8.9x 7.5x 4,030 4,812 5,440 16.4% 628 874 1,034 15.6% 18.2% 19.0% Ctrip.com International Ltd USD 32.63 4,234 3,527 5.3x 4.3x 3.6x 29.5x 24.6x 18.0x 660 826 987 22.1% 120 143 196 18.1% 17.3% 19.9% Homeaway Inc USD 32.34 2,747 2,432 8.7x 7.2x 6.0x 45.6x 24.5x 19.8x 280 340 408 21.0% 53 99 123 19.0% 29.2% 30.1% Wotif.com Holdings Ltd AUD 4.53 878 740 5.7x 5.4x 4.9x 10.2x 9.8x 8.9x 130 137 150 6.1% 73 75 83 56.1% 54.7% 55.6% Orbitz Worldwide Inc USD 8.03 847 1,077 1.4x 1.3x 1.2x 8.3x 7.7x 7.1x 779 829 862 4.0% 129 140 153 16.6% 16.8% 17.7% Travelzoo Inc USD 27.26 419 354 2.3x 2.2x 2.0x 11.4x 11.4x 9.8x 151 161 173 5.2% 31 31 36 20.5% 19.3% 20.8% Hotel De Ag EUR 30.25 147 139 2.3x 2.1x 1.6x 53.6x 36.9x NA 59 66 89 18.6% 3 4 NA 4.4% 5.7% NA Mean 5.2x 4.4x 3.8x 23.0x 17.5x 12.6x 1,590 1,872 2,155 14.3% 493 572 753 27.3% 27.7% 31.3% Median 4.8x 4.2x 3.7x 16.2x 13.4x 10.0x 17.5% 19.8% 24.3% 30.1% Online Marketing / Advertising Valueclick Inc USD 24.71 1,883 1,834 2.8x 2.5x 2.2x 9.1x 7.3x 6.5x 661 740 827 16.1% 201 250 283 30.3% 33.8% 34.2% Marchex Inc USD 6.02 227 210 1.5x 1.4x 1.3x NM 14.8x 9.4x 138 147 166 4.3% 1 14 22 1.1% 9.7% 13.4% Tradedoubler Ab SEK 17.10 108 86 0.3x 0.3x 0.3x 28.6x 7.0x 5.8x 342 313 331 (5.1%) 3 12 15 0.9% 3.9% 4.5% Hi-media Sa EUR 1.67 99 136 0.5x 0.5x 0.5x 5.9x 5.5x 5.7x 253 265 281 (2.0%) 23 25 24 9.0% 9.3% 8.4% Velti Plc USD 1.40 93 79 0.3x 0.3x 0.3x 1.1x 30.4x 4.4x 279 235 277 13.5% 71 3 18 25.5% 1.1% 6.4% Ad Pepper Media Internationa EUR 0.86 26 11 0.2x 0.1x 0.1x NM NM 8.3x 72 76 77 2.0% -3 -0 1 (4.1%) (0.1%) 1.8% Mean 0.9x 0.9x 0.8x 11.2x 13.0x 6.7x 291 296 327 4.8% 49 51 60 10.5% 9.6% 11.4% Median 0.4x 0.4x 0.4x 7.5x 7.3x 6.2x 3.1% 5.0% 6.6% 7.4% Online Content Netflix Inc USD 211.09 11,852 11,580 3.2x 2.7x 2.3x 6.6x 39.3x 24.0x 3,609 4,334 5,066 16.5% 1,752 295 483 48.5% 6.8% 9.5% Yandex Nv USD 27.65 11,753 11,424 13.0x 9.7x 7.9x 30.2x 21.5x 17.1x 876 1,173 1,448 33.4% 378 532 669 43.1% 45.3% 46.2% Mail.ru Group Ltd USD 28.66 5,992 5,110 8.0x 6.2x 5.2x 18.6x 12.1x 10.1x 637 819 983 29.3% 275 422 507 43.2% 51.5% 51.5% Iac/interactivecorp USD 47.58 4,009 4,019 1.4x 1.3x 1.1x 9.8x 6.6x 5.6x 2,801 3,207 3,544 19.8% 412 606 721 14.7% 18.9% 20.3% Pandora Media Inc USD 18.40 3,216 3,141 7.4x 5.1x 3.7x NM NM 55.6x 425 616 849 27.0% -9 14 56 (2.1%) 2.3% 6.7% Aol Inc USD 36.48 2,825 2,473 1.1x 1.1x 1.1x 7.5x 5.8x 5.5x 2,192 2,243 2,292 1.3% 330 424 451 15.1% 18.9% 19.7% Zynga Inc USD 2.78 2,207 1,038 0.8x 1.3x 1.2x 19.2x 18.2x 9.1x 1,281 824 889 (8.0%) 54 57 114 4.2% 6.9% 12.8% Blinkx Plc GBP 1.09 606 564 3.2x 2.6x 2.2x 21.6x 16.8x 12.4x 177 215 256 35.7% 26 34 46 14.7% 15.6% 17.8% Demand Media Inc USD 6.00 522 412 1.1x 1.0x 0.9x 5.9x 3.7x 3.2x 381 408 462 12.5% 69 111 127 18.2% 27.2% 27.5% Xo Group Inc USD 11.20 300 225 1.7x 1.7x 1.6x 11.8x 9.2x 7.8x 129 134 144 5.0% 19 24 29 14.8% 18.2% 20.0% Realnetworks Inc USD 7.56 268 10 0.0x 0.0x NA NM NA NA 259 224 NA NA -25 NA NA (9.8%) NA NA Mean 3.7x 3.0x 2.7x 14.6x 14.8x 15.0x 1,161 1,291 1,593 17.2% 298 252 320 18.6% 21.2% 23.2% Median 1.7x 1.7x 1.9x 11.8x 12.1x 9.6x 18.2% 14.8% 18.6% 19.8%

Source: Thomson Reuters, Company financials 16 This report may not be reproduced, redistributed or passed to any other person or published in whole or in part for any purpose without the written consent of Piper Jaffray. © 2013 Piper Jaffray Ltd. All rights reserved. 1 - Internet and Digital Media

D - Public Market Trading Multiples (Cont’d)

Stock Revenues EBITDA EBITDA EBITDA Stock Price Market Enterprise EV / Revenue EV / EBITDA Revenues CAGR EBITDA Margin Margin Margin Company Price 30-Jun-13 Cap Value Dec- 12 Dec- 13 Dec- 14 Dec- 12 Dec- 13 Dec- 14 Dec- 12 Dec- 13 Dec- 14 2011- 14 Dec- 12 Dec- 13 Dec- 14 Dec- 12 Dec- 13 Dec- 14 Currency (Local Ccy) (USD m) (USD m) (USD m) (USD m) (USD m) (USD m)(USD m)(USD m) Chinese Internet Leaders Holdings Ltd HKD 304.20 72,622 69,063 9.7x 7.1x 5.6x 24.4x 19.1x 15.8x 7,152 9,696 12,295 38.4% 2,826 3,622 4,357 39.5% 37.4% 35.4% Baidu Inc USD 94.60 33,078 29,705 8.4x 6.1x 4.7x 14.9x 13.4x 10.8x 3,540 4,855 6,276 40.8% 1,994 2,219 2,759 56.3% 45.7% 44.0% Netease, Inc USD 63.17 8,202 5,580 4.3x 3.6x 3.2x 8.9x 7.2x 6.2x 1,301 1,560 1,763 16.0% 626 779 904 48.1% 50.0% 51.3% Sina Corp USD 55.73 3,720 3,046 5.8x 5.0x 4.0x NM 45.0x 18.6x 529 606 765 16.6% 21 68 164 4.0% 11.2% 21.4% Sohu.com Inc USD 61.62 2,356 1,882 1.8x 1.4x 1.2x 5.7x 5.1x 4.3x 1,067 1,378 1,592 23.2% 328 366 437 30.7% 26.6% 27.5% Giant Interactive Group Inc USD 8.01 1,919 1,496 4.4x 3.8x 3.3x 7.1x 5.9x 5.1x 341 395 447 17.2% 209 253 294 61.3% 64.0% 65.9% Perfect World Co Ltd USD 17.42 843 453 1.0x 1.0x 0.9x 3.9x 4.6x 3.9x 440 456 513 3.5% 117 98 117 26.6% 21.4% 22.8% Mean 5.0x 4.0x 3.3x 10.8x 14.3x 9.2x 2,053 2,706 3,379 22.2% 874 1,058 1,290 38.1% 36.6% 38.3% Median 4.4x 3.8x 3.3x 8.0x 7.2x 6.2x 17.2% 39.5% 37.4% 35.4% Online Gambling Playtech Plc GBP 6.02 2,671 2,588 6.3x 5.6x 5.2x 15.2x 12.4x 12.3x 413 462 498 22.7% 171 208 210 41.3% 45.0% 42.2% Bwin.party Digital EntertainmGBP 1.13 1,389 1,175 1.1x 1.2x 1.2x 6.4x 6.0x 5.5x 1,042 966 984 3.1% 183 195 212 17.6% 20.1% 21.5% Betfair Group Plc GBP 8.52 1,350 1,171 2.0x 2.0x 1.9x 10.0x 9.3x 8.8x 588 588 610 0.9% 118 127 132 20.0% 21.5% 21.7% Unibet Group Plc SEK 224.50 941 867 2.9x 2.5x 2.2x 9.9x 8.8x 7.4x 299 353 403 19.8% 87 99 117 29.2% 28.0% 29.0% 888 Holdings Plc GBP 1.48 786 698 1.9x 1.8x 1.7x 10.7x 9.8x 9.2x 376 396 412 7.6% 65 71 76 17.3% 18.1% 18.4% Sportech Plc GBP 0.79 239 326 1.9x 1.8x 1.8x 8.6x 7.7x 7.5x 170 176 182 0.5% 38 42 43 22.3% 23.9% 23.8% Bet At Home Com Ag EUR 24.48 112 81 0.8x 0.7x 0.7x 8.3x 4.0x 23.1x 98 121 109 8.3% 10 20 4 9.9% 17.0% 3.2% Mean 2.4x 2.2x 2.1x 9.9x 8.3x 10.6x 427 437 457 9.0% 96 109 113 22.5% 24.8% 22.8% Median 1.9x 1.8x 1.8x 9.9x 8.8x 8.8x 7.6% 20.0% 21.5% 21.7% Overall Mean 4.2x 3.5x 3.0x 19.2x 15.7x 12.4x 15.0% 22.6% 24.7% 26.2% Overall Median 2.8x 2.5x 2.2x 15.2x 12.7x 10.0x 16.0% 18.2% 20.8% 22.5%

Source: Thomson Reuters, Company financials 17 This report may not be reproduced, redistributed or passed to any other person or published in whole or in part for any purpose without the written consent of Piper Jaffray. © 2013 Piper Jaffray Ltd. All rights reserved. TECHNOLOGY, MEDIA & TELECOMMUNICATIONS MONITOR Market and Industry Update 2 - Software and IT Services

A - Trading Update Sub-sector performance – Last Three Months: Sub-sector performance – Last 12 Months:

Sector 3M Sector LTM SAAS 3.4% SAAS 31.0% ERP 2.7% ERP 21.4% Specialised 0.3% Specialised 19.4% Analytics / Data (0.5%) Fintech 19.3% Fintech (0.6%) Large Cap Tech 2.1% Large Cap Tech (11.0%) Analytics / Data (5.5%) Infrastructure IT Management (14.7%) Security (5.6%) Security (16.4%) Infrastructure IT Management (21.5%) NASDAQ Comp 3.4% S&P 500 17.6% S&P 500 1.9% NASDAQ Comp 16.4% DJIA 1.7% DJIA 16.0%

Note: For composition of indices, see Public Market Trading Multiples section

Top 5 Price Performers – Last Three Months: Top 5 Price Performers – Last 12 Months:

Company % change Company % change ExactTarget 47.1% Rovi Corp 92.8% AVG Technologies NV 44.8% AVG Technologies NV 88.1% Cornerstone OnDemand 33.1% Cornerstone OnDemand 86.5% Advent Software 23.3% Temenos Group 81.1% Microsoft 18.3% NetSuite 73.7%

Top 5 Price Underperformers – Last Three Months: Top 5 Price Underperformers – Last 12 Months:

Company % change Company % change

SDL PLC (37.4%) SDL PLC (58.7%) Fortinet (25.3%) Bazaarvoice (44.4%) Palo Alto Networks (25.2%) TIBCO Software (25.5%) Software AG (24.4%) Fortinet (22.6%) Autodesk (16.0%) Vmware (21.7%)

Source: Capital IQ 18 This report may not be reproduced, redistributed or passed to any other person or published in whole or in part for any purpose without the written consent of Piper Jaffray. © 2013 Piper Jaffray Ltd. All rights reserved. TECHNOLOGY, MEDIA & TELECOMMUNICATIONS MONITOR Market and Industry Update 2 - Software and IT Services

B - Transaction Update Selected European ECM Transactions – H1 2013

Offering Target Amount Offering Date Target Location ($MM) Deal Type Description Target Description 03-Jun-2013 Elephant Talk Netherlands 12 Follow-On Common Stock Mobile and fixed telecommunications software Communications Corp 31-May-2013 blur Ltd UK 12 Follow-On Common Stock Cloud-based technology solutions

24-May-2013 1Spatial plc UK 27 Follow-On Common Stock Location based software and consultancy services

22-May-2013 Luxoft Holding Inc Switzerland 85 IPO Common Stock Software application development company

17-May-2013 Parity Group plc UK 11 Follow-On Common Stock IT recruitment solutions

09-May-2013 Outsourcery plc UK 19 IPO Common Stock Software as a service solutions

27-Mar-2013 Qiwi plc Russia 213 IPO Common Stock Electronic online payment systems

20-Mar-2013 Atos SA France 167 Follow-On Common Stock Technology system integration

15-Feb-2013 Advanced Computer UK 68 Follow-On Common Stock Healthcare software and IT services Software Group plc 13-Feb-2013 Dolphin Group ASA Norway 41 Follow-On Common Stock Interconnect technology and software

06-Feb-2013 Be Think Solve Italy 17 Follow-On Common Stock Software engineering solutions Execute SpA 22-Jan-2013 Fleetmatics Group plc Ireland 193 Follow-On Common Stock Software-as-a-service fleet management solutions

Number of Deals 12 Average Value ($MM) 72 Total Value ($MM) 864

Note: Offerings over $10 million where the issuer is headquartered in Europe

Source: Capital IQ, Strategy Eye, Thomson Reuters, Company data 19 This report may not be reproduced, redistributed or passed to any other person or published in whole or in part for any purpose without the written consent of Piper Jaffray. © 2013 Piper Jaffray Ltd. All rights reserved. TECHNOLOGY, MEDIA & TELECOMMUNICATIONS MONITOR Market and Industry Update 2 - Software and IT Services

B - Transaction Update Selected European M&A Transactions – H1 2013

Deal Trans. Multiples Target Acquirer Value EV / EV / Date Target Location Acquirer Location ($MM) Sales EBITDA Target Description

27-Jun-2013 Neolane SA France Adobe Systems Inc US 600 N/A N/A Marketing software

17-Jun-2013 ICT Automatisering NV Netherlands DPA Group NV Netherlands 43 0.4x 12.5x Communication software

14-Jun-2013 Engineering Ingegneria Italy One Equity Partners LLC US 156 0.5x 4.6x Cloud solutions Informatica SpA 10-Jun-2013 Waze Ltd Israel Google Inc US 1,100 N/A N/A Social mobile application

10-Jun-2013 GFI Informatique SA France Boussard & Gavaudan UK 112 0.4x 5.7x IT consulting and software solutions Holding Ltd; Boussard & Gavaudan Partners Ltd; Itefin Participations SAS 10-Jun-2013 Trustmarque Solutions UK Dunedin LLP UK 67 N/A N/A Software licensing company Ltd 29-May-2013 Apriso Corp US Dassault Systemes SA France 205 N/A N/A Software solutions for management

20-May-2013 CSS Corp US Partners Group Holding Germany 275 N/A N/A Cloud computing services AG 17-Apr-2013 Supercell Oy Finland Institutional Venture UK 130 N/A N/A Online games Partners; Index Ventures; Atomico Investment Holdings Ltd 15-May-2013 Xchanging Transaction Germany Deutsche Bank AG Germany 52 N/A N/A Infrastructure and software solutions Bank GmbH 08-May-2013 Civica plc UK OMERS Private Equity Canada 608 N/A N/A Cloud-based IT services

06-May-2013 Stonesoft Oyj Finland McAfee Inc US 387 6.8x N/M Information security solutions

19-Apr-2013 Osiatis SA France Econocom Group Belgium 153 0.4x 5.6x IT infrastructure services

08-Apr-2013 Alti SA France Tata Consultancy Services UK 98 4.4x 15.2x Information technology services Ltd 25-Mar-2013 Nebula Oy Finland Ratos AB Sweden 71 N/A N/A DNS capacity services

08-Mar-2013 Arieso Ltd UK JDS Uniphase Corp US 85 N/A N/A Network optimization solutions

08-Mar-2013 Computer Software UK Advanced Computer UK 164 N/A N/A Software solution and services Holdings Ltd Software Group plc 01-Mar-2013 Playtech Ltd UK William Hill Online Ltd UK 637 6.8x 10.4x Software for online gambling

22-Feb-2013 LBM Holdings Ltd UK SGS Netherlands Netherlands 57 N/A N/A Data cleansing services Investment Corporation BV

Note: M&A transactions over $40 million where either party is headquartered in Europe

Source: Capital IQ, Strategy Eye, Thomson Reuters, Company data 20 This report may not be reproduced, redistributed or passed to any other person or published in whole or in part for any purpose without the written consent of Piper Jaffray. © 2013 Piper Jaffray Ltd. All rights reserved. TECHNOLOGY, MEDIA & TELECOMMUNICATIONS MONITOR Market and Industry Update 2 - Software and IT Services

B - Transaction Update Selected European M&A Transactions – H1 2013

Deal Trans. Multiples Target Acquirer Value EV / EV / Date Target Location Acquirer Location ($MM) Sales EBITDA Target Description

22-Feb-2013 OSG Records Russia Elbrus Capital Investment Russia 48 N/A N/A Data management solutions Management ZAO Adviser 20-Feb-2013 Sigma AB Sweden Danir AB Sweden 62 0.5x 9.3x IT logistic solutions

14-Feb-2013 Capita Managed IT UK Capita plc UK 101 N/A N/A Cloud based infrastructure services Solutions Ltd 14-Feb-2013 CapitalStream Inc US Linedata Services SA France 45 N/A N/A Software and consulting services

05-Feb-2013 SPi Global Holdings Inc US CVC Capital Partners Ltd UK 320 N/A N/A Solutions for customer interaction

30-Jan-2013 IXXAT Automation GmbH Germany HMS Networks AB Sweden 43 N/A N/A Software product services

29-Jan-2013 Ogone BVBA/SPRL Belgium Ingenico SA France 485 N/A N/A Online payment solutions

02-Jan-2013 Globant Inc Argentina WPP plc UK 70 N/A N/A Software migration solutions

Median 0.5x 9.3x Mean 2.5x 9.0x

Number of Deals 27 Average Value ($MM) 229 Total Value ($MM) 6,173

Note: M&A transactions over $40 million where either party is headquartered in Europe

Source: Capital IQ, Strategy Eye, Thomson Reuters, Company data 21 This report may not be reproduced, redistributed or passed to any other person or published in whole or in part for any purpose without the written consent of Piper Jaffray. © 2013 Piper Jaffray Ltd. All rights reserved. TECHNOLOGY, MEDIA & TELECOMMUNICATIONS MONITOR Market and Industry Update 2 - Software and IT Services

B - Transaction Update Selected European Private Equity and Venture Capital Activity – H1 2013

Deal Target Value Date Target Location ($MM) Investor(s) Target Description 27-Jun-2013 NumberFour AG Germany 38 T-Venture Holding GmbH; Application software solutions Index Ventures; Allen & Company LLC 24-Jun-2013 Easy Taxi Brazil 15 Latin America Internet Taxi application software Holding 13-Jun-2013 Zenterio AB Sweden 13 Scope Capital Advisory AB Digital TV software solutions and services

30-May-2013 Numecent Ltd UK 14 Endeavour Ventures; Cloud computing T-Ventures 28-May-2013 MAYKOR Group Russia 100 CapMan Oyj; European Bank IT equipment services for Reconstruction and Development, Asset Management Arm; Russian Direct Investment Fund 16-May-2013 BonitaSoft SA France 13 Auriga Partners; Ventech; Open source business process management CDC Entreprises; Serena Capital

30-Apr-2013 ClickTale Ltd Israel 17 Amadeus Capital Partners Website analytics services Ltd; Goldrock Capital; VPartners

18-Apr-2013 motain GmbH & Co KG Germany 13 Earlybird Venture Capital Develops and markets football applications GmbH & Co KG 17-Apr-2013 Reduxio Systems Ltd Israel 12 Jerusalem Venture Partners; Storage solutions for cloud and virtual machines Carmel Ventures; Intel Capital

29-Mar-2013 ForgeRock AS Norway 15 Accel Management Co, Inc; Open source software company Foundation Capital 20-Mar-2013 ProfitBricks GmbH Germany 20 United Internet AG Cloud computing solutions

13-Mar-2013 Pyramid Analytics BV Netherlands 12 Sequoia Capital Business intelligence applications

06-Mar-2013 To The New UK 14 Four Cross Media Ltd Application, web and mobile content solutions

06-Mar-2013 OJSC Universal Electronic Card Russia 15 AK Bars Bank Identification and payment card software

05-Mar-2013 hybris GmbH Germany 30 Greylock Partners; MeriTech Multi-channel communication software Capital Partners; HGGC, LLC 21-Feb-2013 Fortumo Ltd Estonia 10 Greycroft Partners; Intel Mobile payment platform solutions Capital 19-Feb-2013 Elasticsearch NL Netherlands 24 Benchmark Capital; Index Search engine solutions Ventures; SV Angel

(1) Private placements over $10 million and financial sponsor deals where issuer/target is headquartered in Europe (2) Firms in bold are the lead investors in the financing round (where disclosed)

Source: Capital IQ, Strategy Eye, Thomson Reuters, Company data 22 This report may not be reproduced, redistributed or passed to any other person or published in whole or in part for any purpose without the written consent of Piper Jaffray. © 2013 Piper Jaffray Ltd. All rights reserved. TECHNOLOGY, MEDIA & TELECOMMUNICATIONS MONITOR Market and Industry Update 2 - Software and IT Services

B - Transaction Update Selected European Private Equity and Venture Capital Activity – H1 2013

Deal Target Value Date Target Location ($MM) Investor(s) Target Description 05-Feb-2013 Game Insight LLC Russia 25 IMI.VC Games and apps for mobile and social platforms

29-Jan-2013 NewVoiceMedia Ltd UK 20 Highland Capital Partners; Cloud contact centre solutions MMC VENTURES Ltd; Eden Ventures (UK) Ltd; Notion Capital Partners LLP 17-Jan-2013 iMediapp SAS France 14 Iris Capital Smart phone based applications

16-Jan-2013 OnApp UK 20 Lloyds Development Capital Cloud storage Ltd 08-Jan-2013 Panaya Inc Israel 16 Battery Ventures; Benchmark Cloud-based ERP automation services Capital; Hasso Plattner Ventures Management GmbH

Number of Deals 22 Average Value ($MM) 21 Total Value ($MM) 468

(1) Private placements over $10 million and financial sponsor deals where issuer/target is headquartered in Europe (2) Firms in bold are the lead investors in the financing round (where disclosed)

Source: Capital IQ, Strategy Eye, Thomson Reuters, Company data 23 This report may not be reproduced, redistributed or passed to any other person or published in whole or in part for any purpose without the written consent of Piper Jaffray. © 2013 Piper Jaffray Ltd. All rights reserved. 2 - Software and IT Services

C - Industry News

Cloud office services adopted by less than 10% of enterprise users 13th June 2013, written by StrategyEye The number of enterprises employees now using cloud email or office systems is around 50m, only 8% of the total number of office systems in use. The figures represent the global enterprise market, excluding India and China, and show that migration to the cloud may be slower than initially expected. However, the first half of 2015 is predicted to be a watershed period for cloud uptake and the total number of cloud-supported enterprises is expected to reach 33% by 2017. The data, which comes from research firm Gartner, suggests that the hype surrounding cloud office systems may not be reflective of actual uptake. Nevertheless, Gartner predicts that by 2022 there will be 695m enterprise employees logging into cloud-based systems, 60% of all office system users.

Email remains the most widely used collaboration tool and key in companies’ decisions whether or not to move to the cloud. Gartner estimates that by the end of next year, 10% of all enterprise emails will be sent via a cloud or software-as-a-service model. Uptake is expected to be further accelerated by the increasing number of devices through which users access enterprise cloud networks, with employees logging in via their own smartphones, tablets and laptops, as well as enterprise PCs.

The research also found that cloud adoption varies widely between industries. Companies operating in the higher education, discrete manufacturing, retail and hospitality industries were found to be more likely to use cloud-based office systems. By contrast intelligence and defence firms, as well as heavily regulated sectors of the financial services and healthcare industries, were least likely to.

Worldwide security market to grow 8.7 % in 2013 11th June 2013, written by Piper Jaffray The worldwide security technology and services market is forecast to reach $67.2 billion in 2013, up 8.7 % from $61.8 billion in 2012, according to Gartner. The market is expected to grow to more than $86 billion in 2016.

"With security being one of the top IT concern areas, the prospect of strong continued growth is assured. The consistent increases in the complexity and volume of targeted attacks, coupled with the necessity of companies to address regulatory or compliance-related issues continue to support healthy security market growth," said Ruggero Contu, research director at Gartner.

Other analysts at Gartner suggest mobile security, bid data and advanced targeted attacks are the main drivers for growth in IT security.

Amazon’s cloud service revenues to hit USD20bn by 2020 15th April 2013, written by StrategyEye Amazon’s cloud services could generate as much as USD20bn in revenues for the company by 2020, driven by both consumer uptake and enterprises increasingly shifting operations to the cloud. The figures, from Bernstein Research, are based on estimates, as the firm does not break out figures for its Amazon Web Services (AWS) division. Although AWS is only believed to make up a small fraction of Amazon’s overall revenues at the moment, the cloud is expected to become an increasingly important source of revenue for the company.

Public cloud companies are seeing strong revenue growth, which claims the top 10 cloud computing firms, including Amazon and Rackspace, saw revenues grow nearly 40% last year. This is expected to continue over the next few years, with Market Research Media forecasting that the market will grow at 30% per year to hit USD270bn by 2020. Investors are also flocking to the space, with StrategyEye data revealing VC firms poured USD6bn into cloud-based companies in the last year.

Amazon’s balance sheets reveal that the %age of Amazon’s turnover coming from its ‘other section’, which includes AWS, is steadily increasing. In Q4 this segment made up 6.3% of the firm’s overall USD12.1bn sales. This compares to the previous year, when ‘other’ contributed just 2.9% of Amazon’s overall USD17.4bn sales for the quarter. While the increase appears marginal, Amazon’s ‘other’ section was its fastest-growing segment by revenue last year, up nearly 60% year on year, compared to 35% for electronics sales and 12% for media.

By 2015, 10 % of overall IT security enterprise product capabilities will be delivered in the cloud 15th April 2013, written by Piper Jaffray Gartner reports that by 2015, 10 % of the worldwide IT security enterprise product capabilities will be cloud-based. Gartner projects the cloud-based security services market to reach $4.2 billion by 2016.

"Demand remains high from buyers looking to cloud-based security services to address a lack of staff or skills, reduce costs or comply with security regulations quickly," said Eric Ahlm, research director at Gartner.

Gartner already suggested in January 2013 that security spending shows high demand from security buyers for cloud-based security service offerings. The study interviewed security buyers from the U.S. and Europe, representing a cross section of industries and company sizes, who stated they plan to increase the consumption of several common cloud services during the next 12 months. The highest-consumed cloud-based security service is e-mail security services, with 74 % of respondents rating this as the top service.

24 This report may not be reproduced, redistributed or passed to any other person or published in whole or in part for any purpose without the written consent of Piper Jaffray. © 2013 Piper Jaffray Ltd. All rights reserved.

2 - Software and IT Services

C - Industry News

42 % of IT leaders have invested in big data or plan to do so within a year 12th March 2013, written by Piper Jaffray Larger scale adoption of big data technologies will be tackled by 42% of respondents, stated in a worldwide Gartner survey of IT leaders. "Organizations have increased their understanding of what big data is and how it could transform the business in novel ways. Most organizations are still in the early stages, and few have thought through an enterprise approach or realized the profound impact that big data will have on their infrastructure, organizations and industries," said Doug Laney, research vice president at Gartner.

Organizations turn to big data technology for two reasons: necessity and conviction. Organizations are becoming aware that big data initiatives are critical because they have identified obvious or potential business opportunities that cannot be met with traditional data sources, technologies or practices. Gartner predicts that by 2015, 20 % of Global 1000 organizations will have established a strategic focus on information infrastructure equal to that of application management.

Global enterprise software spending to further increase in 2013 and 2014 5th March 2013, written by Piper Jaffray Compared to 2012, worldwide enterprise software spending is forecast to increase by 6.4% and total $297 billion in 2013, Gartner reports. Greater adoption for software as a service (SaaS) drives the increase in worldwide software spending through 2014, although regions with higher IT maturity, such as North America and Western Europe, expect lower increases over the next two years.

Developing countries however, with immature IT infrastructure, such as Eastern Europe, Latin America and Asia/Pacific, will experience the largest budget increases in software spending.

Worldwide business intelligence software revenue to grow 7 % in 2013 19th February 2013, written by Piper Jaffray Global Business Intelligence (BI) software revenue will reach $13.8 billion in 2013, a 7 % increase compared to 2012, according to the findings from a recent study by Gartner. The research projects revenues to reach $17.1 billion by 2016.

Demand for BI is complemented by more tactical buying in business units for departmental and workgroup analysis, as well as for personal BI, enabled by cloud, mobile, social and information.

"Although this is a mature market and has been a top CIO priority for years, there is still a lot of unmet demand. Every company has numerous subject areas— such as HR, marketing, social and so on—that have yet to even start with BI and analytics," said Kurt Schlegel, research vice president at Gartner.

Microsoft losing USD2.5bn a year with its refusal to bring Office to the iPad 15th February 2013, written by StrategyEye Microsoft could be losing as much as USD2.5bn per year in potential sales of its Office suite by delaying the release of an app for the iPad, according to estimates from Morgan Stanley analyst Adam Holt. Although documents leaked last year suggested that the firm was working on an app for iOS devices, Microsoft is yet to confirm that it is bringing its popular office tools, which include Word and Excel, to the iPad. Microsoft is reluctant to launch an iPad app for Office as it is trying to boost sales of its own tablet, the Surface, in the enterprise sector and fears that businesses will just bypass the device for Apple’s market-leading iPad if they can access Office on it.

The company has just launched a revamped version of the software including a number of versions aimed at both businesses and consumers at a range of different price points, including the cloud-based Office 365, which consumers can use on a number of different devices for a subscription. The new Office portfolio is designed for Microsoft’s recently launched Windows 8 OS, which can run on both PCs and tablets. Microsoft will hope that the overhauled suite will gain traction immediately, with revenues in its business division, which includes Office, down 10% to USD5.69bn during its latest quarter.

Microsoft has traditionally dominated the space, but is increasingly feeling the heat from rivals Google and Apple, which are both edging into the space as the enterprise software becomes the new battleground between the tech giants. Google’s main threat is the competitive pricing of its Google Apps suite, including tools such as Google Docs, which are available to businesses for less than USD50 per year. But with Google yet to break out how many users it has, it is difficult to gauge how much of a threat it is. Meanwhile, Apple is courting business customers, as employees increasingly replace work laptops with their own tablets. With the iPad accounting for the majority of business device activations, Microsoft faces a difficult challenge as it attempts to take ground with the Surface tablet.

25 This report may not be reproduced, redistributed or passed to any other person or published in whole or in part for any purpose without the written consent of Piper Jaffray. © 2013 Piper Jaffray Ltd. All rights reserved. 2 - Software and IT Services

D - Public Market Trading Multiples

Stock Revenues EBITDA EBITDA EBITDA Stock Price Market Enterprise EV / Revenue EV / EBITDA Revenues CAGR EBITDA Margin Margin Margin Company Price 30-Jun-13 Cap Value Dec- 12 Dec- 13 Dec- 14 Dec- 12 Dec- 13 Dec- 14 Dec- 12 Dec- 13 Dec- 14 2011- 14 Dec- 12 Dec- 13 Dec- 14 Dec- 12 Dec- 13 Dec- 14 Currency (Local Ccy) (USD m) (USD m) (USD m) (USD m) (USD m) (USD m) (USD m) (USD m) SaaS Salesforce.com Inc USD 38.18 22,524 22,117 7.3x 5.7x 4.5x 44.1x 34.8x 26.1x 3,047 3,859 4,887 17.9% 502 636 847 16.5% 16.5% 17.3% Netsuite Inc USD 91.74 6,769 6,592 21.3x 16.2x 12.7x NM NM NM 309 408 519 30.0% - 17 40 53 (5.4%) 9.7% 10.1% Concur Technologies Inc USD 81.38 4,544 4,335 9.3x 7.6x 6.1x 64.0x 34.8x 28.9x 465 573 708 23.9% 68 125 150 14.6% 21.7% 21.2% Ultimate Software Group Inc USD 117.29 3,243 2,532 7.6x 6.2x 5.1x 57.5x 31.3x 23.9x 332 409 500 23.0% 44 81 106 13.3% 19.8% 21.1% Exacttarget Inc USD 33.72 2,348 2,253 7.7x 6.0x 4.9x NM NM 99.1x 292 378 458 30.2% 4 5 23 1.2% 1.3% 5.0% Cornerstone Ondemand Inc USD 43.30 2,208 2,139 18.1x 11.7x 8.4x NM NM NM 118 182 256 51.9% -25 1 6 (21.0%) 0.4% 2.4% J2 Global Inc USD 42.51 1,954 1,905 5.1x 3.7x 3.5x 10.4x 8.1x 7.6x 371 517 541 17.9% 184 235 250 49.5% 45.4% 46.2% Jive Software Inc USD 18.17 1,211 1,077 9.5x 7.2x 5.5x NM NM NM 114 151 195 36.1% -37 -26 - 14 (32.6%) (17.1%) (7.0%) Bazaarvoice Inc USD 9.43 698 602 4.2x 3.4x 2.9x NM NM NM 142 177 209 31.3% -34 -22 -3 (23.8%) (12.5%) (1.4%) Mean 10.0x 7.5x 6.0x 44.0x 27.3x 37.1x 577 739 919 29.1% 77 119 157 1.4% 9.5% 12.8% Median 7.7x 6.2x 5.1x 50.8x 33.1x 26.1x 30.0% 1.2% 9.7% 10.1% Analytics / Data Teradata Corp USD 50.23 8,208 7,626 2.9x 2.7x 2.5x 10.8x 9.6x 8.7x 2,665 2,805 3,077 9.2% 706 798 874 26.5% 28.5% 28.4% Opentext Corp USD 68.47 4,040 4,167 3.2x 2.9x 2.7x 11.1x 9.7x 9.1x 1,292 1,414 1,519 10.7% 376 428 458 29.1% 30.3% 30.1% Informatica Corp USD 34.98 3,781 3,189 3.9x 3.5x 3.1x 17.7x 12.2x 11.4x 812 913 1,022 9.2% 180 261 280 22.2% 28.5% 27.4% Tibco Software Inc USD 21.40 3,504 3,309 3.2x 3.1x 2.8x 14.2x 12.0x 10.4x 1,027 1,061 1,163 7.8% 234 276 318 22.8% 26.0% 27.3% Qlik Technologies Inc USD 28.27 2,460 2,245 5.8x 4.7x 3.9x NM 38.3x 27.5x 389 478 573 21.4% 20 59 82 5.1% 12.3% 14.2% Nice Systems Ltd ILS 133.90 2,235 2,058 2.3x 2.1x 2.0x 14.1x 9.6x 9.6x 879 962 1,032 9.2% 146 215 215 16.6% 22.4% 20.8% Verint Systems Inc USD 35.47 1,870 2,193 2.6x 2.4x 2.3x 10.3x 9.5x 9.0x 843 898 959 4.7% 213 232 245 25.2% 25.8% 25.5% Mean 3.4x 3.1x 2.8x 13.0x 14.4x 12.2x 1,129 1,219 1,335 10.3% 268 324 353 21.1% 24.8% 24.8% Median 3.2x 2.9x 2.7x 12.6x 9.7x 9.6x 9.2% 22.8% 26.0% 27.3% ERP The Sage Group Plc GBP 3.40 5,724 6,048 3.0x 2.9x 2.8x 10.0x 9.7x 9.3x 2,050 2,111 2,165 2.2% 604 622 647 29.5% 29.4% 29.9% Unit4 Nv EUR 24.89 960 1,123 1.8x 1.7x 1.6x 8.8x 9.0x 7.8x 611 644 688 5.9% 128 125 145 20.9% 19.5% 21.0% Exact Holding Nv EUR 16.36 519 450 1.6x 1.6x 1.5x 7.8x 7.1x 7.0x 282 283 291 1.3% 58 63 64 20.4% 22.3% 22.1% Sdl Plc GBP 2.88 351 341 0.8x 0.8x 0.8x 5.6x 9.4x 6.6x 408 410 432 7.6% 61 36 51 15.0% 8.9% 11.9% Mean 1.8x 1.8x 1.7x 8.0x 8.8x 7.7x 838 862 894 4.3% 213 212 227 21.4% 20.0% 21.2% Median 1.7x 1.7x 1.6x 8.3x 9.2x 7.4x 4.1% 20.7% 20.9% 21.5% Fintech Fiserv Inc USD 87.41 11,640 15,333 3.4x 3.2x 3.0x 10.9x 9.9x 9.2x 4,482 4,866 5,079 5.4% 1,410 1,556 1,676 31.5% 32.0% 33.0% Ss&c Technologies Holdings USD 32.90 2,655 3,551 6.4x 4.9x 4.6x 16.6x 12.3x 11.0x 552 718 776 27.9% 213 289 322 38.7% 40.3% 41.5% Aci Worldwide Inc USD 46.48 1,852 2,410 3.6x 2.7x 2.5x 17.3x 9.9x 8.4x 667 893 977 28.1% 139 243 286 20.9% 27.2% 29.2% Advent Software Inc USD 35.06 1,802 1,710 4.8x 4.5x 4.3x 21.7x 16.5x 13.6x 359 378 402 7.2% 79 104 126 21.9% 27.4% 31.3% Temenos Group Ag CHF 23.10 1,758 1,855 4.1x 3.9x 3.6x 14.0x 13.4x 11.7x 450 476 512 2.7% 133 138 159 29.5% 29.0% 31.0% Fidessa Group Plc GBP 19.28 1,091 982 2.3x 2.3x 2.2x 12.3x 9.7x 9.2x 423 428 448 2.0% 80 101 107 18.9% 23.6% 23.8% Innovation Group Plc GBP 0.28 418 382 1.3x 1.2x 1.1x 10.9x 8.4x 7.5x 300 324 349 8.5% 35 46 51 11.7% 14.1% 14.6% Mean 3.7x 3.2x 3.0x 14.8x 11.4x 10.1x 1,033 1,155 1,220 11.7% 298 354 389 24.7% 27.6% 29.2% Median 3.6x 3.2x 3.0x 14.0x 9.9x 9.2x 7.2% 21.9% 27.4% 31.0% Infrastructure IT Management Vmware Inc USD 66.99 28,684 24,197 5.3x 4.7x 4.1x 19.7x 11.7x 10.2x 4,605 5,175 5,935 16.4% 1,231 2,074 2,373 26.7% 40.1% 40.0% Ca Inc USD 28.62 12,963 11,465 2.4x 2.5x 2.5x 6.3x 6.7x 6.7x 4,686 4,512 4,520 (1.4%) 1,824 1,720 1,699 38.9% 38.1% 37.6% Citrix Systems Inc USD 60.36 11,295 10,634 4.1x 3.6x 3.2x 17.5x 11.5x 10.2x 2,586 2,963 3,345 14.9% 609 925 1,039 23.6% 31.2% 31.1% Red Hat Inc USD 47.82 9,053 8,199 6.3x 5.5x 4.8x 31.1x 20.1x 16.6x 1,296 1,495 1,710 16.0% 264 408 494 20.4% 27.3% 28.9% Software Ag EUR 22.99 2,593 2,515 1.8x 1.9x 1.8x 6.7x 7.3x 6.6x 1,361 1,326 1,412 (0.4%) 373 346 383 27.4% 26.1% 27.1% Micro Focus International Plc GBP 7.10 1,609 1,787 4.2x 4.2x 4.1x 9.1x 9.2x 9.1x 422 424 435 (0.2%) 197 195 195 46.7% 45.9% 44.9% Mean 4.0x 3.7x 3.4x 15.0x 11.1x 9.9x 2,493 2,649 2,893 7.5% 750 945 1,031 30.6% 34.8% 34.9% Median 4.2x 3.9x 3.6x 13.3x 10.3x 9.7x 7.4% 27.1% 34.7% 34.3% Security Symantec Corp USD 22.48 15,660 14,004 2.0x 2.0x 2.0x 7.5x 6.1x 5.4x 6,862 6,951 7,137 2.7% 1,864 2,283 2,607 27.2% 32.8% 36.5% Palo Alto Networks Inc USD 42.16 2,999 2,637 8.4x 5.8x 4.3x NM 54.1x 31.2x 312 453 613 51.7% 21 49 85 6.8% 10.8% 13.8% Fortinet Inc USD 17.50 2,839 2,379 4.5x 4.0x 3.5x 21.6x 17.8x 14.5x 534 600 686 16.5% 110 134 165 20.6% 22.3% 24.0% Avg Technologies Nv USD 19.45 1,051 1,064 3.0x 2.5x 2.2x 10.1x 7.7x 7.0x 356 419 473 20.2% 105 137 151 29.6% 32.8% 32.0% F Secure Oyj EUR 2.12 438 417 2.0x 2.0x 1.8x 8.0x 8.8x 7.9x 204 213 228 6.3% 52 47 53 25.5% 22.3% 23.2% Mean 4.0x 3.3x 2.8x 11.8x 18.9x 13.2x 1,654 1,727 1,827 19.5% 430 530 612 21.9% 24.2% 25.9% Median 3.0x 2.5x 2.2x 9.0x 8.8x 7.9x 16.5% 25.5% 22.3% 24.0% Specialised Adobe Systems Inc USD 45.56 22,883 20,519 4.7x 5.0x 4.6x 14.1x 17.1x 14.9x 4,379 4,134 4,483 2.0% 1,453 1,202 1,380 33.2% 29.1% 30.8% Intuit Inc USD 61.04 18,124 16,444 3.8x 3.5x 3.2x 10.7x 9.3x 8.4x 4,299 4,666 5,067 8.8% 1,535 1,777 1,960 35.7% 38.1% 38.7% Dassault Systemes Sa EUR 93.98 15,408 13,526 5.1x 4.9x 4.5x 16.4x 14.5x 12.9x 2,637 2,781 3,026 9.3% 826 934 1,049 31.3% 33.6% 34.7% Autodesk Inc USD 33.94 7,630 6,279 2.7x 2.7x 2.5x 9.6x 9.0x 8.1x 2,293 2,367 2,543 3.3% 656 699 776 28.6% 29.5% 30.5% Cadence Design Systems Inc USD 14.48 4,098 3,639 2.7x 2.5x 2.3x 12.1x 8.1x 7.1x 1,326 1,463 1,582 11.2% 301 450 509 22.7% 30.8% 32.2% Rovi Corp USD 22.84 2,362 3,002 4.6x 4.7x 4.3x 12.7x 9.6x 8.9x 651 645 693 0.6% 236 314 338 36.2% 48.7% 48.7% Aveva Group Plc GBP 22.54 2,327 2,039 6.3x 5.6x 4.9x 19.9x 16.8x 14.5x 325 367 413 12.7% 103 121 141 31.6% 33.1% 34.1% Mentor Graphics Corp USD 19.55 2,200 2,226 2.0x 1.9x 1.8x 9.3x 8.2x 7.3x 1,100 1,152 1,223 4.2% 240 272 303 21.8% 23.6% 24.8% Mean 4.0x 3.8x 3.5x 13.1x 11.6x 10.3x 2,126 2,197 2,379 6.5% 669 721 807 30.1% 33.3% 34.3% Median 4.2x 4.1x 3.8x 12.4x 9.4x 8.6x 6.5% 31.4% 31.9% 33.1% Large Cap Tech Microsoft Corp USD 34.54 288,489 228,201 3.0x 2.8x 2.6x 7.3x 6.8x 6.3x 76,246 81,845 87,472 6.8% 31,215 33,365 36,172 40.9% 40.8% 41.4% International Business MachiUSD 191.11 211,902 232,910 2.2x 2.2x 2.2x 9.0x 8.4x 7.8x 104,507 103,523 106,139 (0.2%) 25,922 27,881 29,843 24.8% 26.9% 28.1% Oracle Corp USD 30.71 144,664 131,439 3.5x 3.4x 3.3x 7.6x 7.1x 6.5x 37,155 38,292 40,277 3.3% 17,201 18,572 20,314 46.3% 48.5% 50.4% Sap Ag EUR 56.26 89,720 90,447 4.3x 3.9x 3.6x 14.2x 11.6x 10.1x 21,087 23,028 25,196 10.8% 6,384 7,798 8,912 30.3% 33.9% 35.4% Emc Corp USD 23.62 49,622 45,967 2.1x 2.0x 1.8x 8.2x 6.7x 6.2x 21,714 23,410 25,332 8.2% 5,602 6,867 7,394 25.8% 29.3% 29.2% Hewlett-packard Co USD 24.80 47,828 61,499 0.5x 0.6x 0.6x 4.3x 4.5x 4.5x 118,867 111,003 108,613 (4.9%) 14,279 13,721 13,516 12.0% 12.4% 12.4% Mean 2.6x 2.5x 2.3x 8.4x 7.5x 6.9x 63,263 63,517 65,505 4.0% 16,767 18,034 19,359 30.0% 32.0% 32.8% Median 2.6x 2.5x 2.4x 7.9x 7.0x 6.4x 5.1% 28.0% 31.6% 32.3% Overall Mean 4.6x 3.9x 3.4x 15.2x 13.3x 13.0x 12.5% 21.8% 25.4% 26.7% Overall Median 3.7x 3.4x 3.1x 10.9x 9.6x 9.1x 9.0% 24.2% 27.3% 28.7%

Source: Thomson Reuters, Company financials 26 This report may not be reproduced, redistributed or passed to any other person or published in whole or in part for any purpose without the written consent of Piper Jaffray. © 2013 Piper Jaffray Ltd. All rights reserved. TECHNOLOGY, MEDIA & TELECOMMUNICATIONS MONITOR Market and Industry Update 3 - Communications Technology & Hardware

A - Trading Update

Sub-sector performance – Last Three Months: Sub-sector performance – Last 12 Months: Sector LTM Sector LTM European Computing, Storage, Imaging European Computing, Storage, and Payment Hardware 25.7% Imaging and Payment Hardware 51.2% European Capital Diversified Systems 39.7% Equipment 9.7% Wireline/Optical/Cable 36.3% Wireline/Optical/Cable 5.4% European Semiconductor Device and IP 27.8% Diversified Systems 3.6% Communication Software 19.4% Communication Software 0.2% Internet Infrastructure 10.2% Home Terminals and Peripherals (1.0%) European Electronic Components and European Electronic Components and Supply Chain 9.7% Supply Chain (3.1%) European Semiconductor Capital Wireless (8.4%) Equipment (0.6%) European Semiconductor Device and IP (12.3%) Home Terminals and Peripherals (4.3%) Internet Infrastructure (16.7%) Enterprise / Data Networking (24.9%) Enterprise / Data Networking (20.7%) Wireless (36.4%) NASDAQ Comp 3.4% S&P 500 17.6% S&P 500 1.9% NASDAQ Comp 16.4% DJIA 1.7% DJIA 16.0%

Note: For composition of indices, see Public Market Trading Multiples section

Top 5 Price Performers – Last Three Months: Top 5 Price Performers – Last 12 Months: Company % change Company % change

Infinera 48.3% Pace 152.7% Pace 39.6% Nokia 111.3% Alcatel-Lucent 30.2% Research In Motion 107.3% U-Blox Holding 27.0% Stmicroelectronics 80.9% Software ASA 25.3% Infinera 75.0%

Top 5 Price Underperformers – Last Three Months: Top 5 Price Underperformers – Last 12 Months:

Company % change Company % change Imagination Technologies (42.8%) Allot Communications (46.7%) Austriamicrosystems (36.5%) Procera Networks (42.0%) Rackspace Hosting (31.8%) Imagination Technologies (35.7%) Bull SA (26.0%) Smith Micro Software Inc (34.8%) Laird (22.8%) Dialog Semiconductor (33.2%)

Source: C apital IQ 27 This report may not be reproduced, redistributed or passed to any other person or published in whole or in part for any purpose without the written consent of Piper Jaffray. © 2013 Piper Jaffray Ltd. All rights reserved. TECHNOLOGY, MEDIA & TELECOMMUNICATIONS MONITOR Market and Industry Update 3 - Communications Technology & Hardware

B - Transaction Update

Selected European ECM Transactions – H1 2013

Offering Target Amount Offering Date Target Location ($MM) Deal Type Description Target Description 28-Jun-2013 Soitec S.A. France 93 Follow-On Common Stock Semiconductor components

30-Apr-2013 UK 163 Follow-On Common Stock Telecommunications retailer Group plc 18-Apr-2013 Velti plc Ireland 25 Follow-On Common Stock Mobile marketing and advertising technology

07-Mar-2013 Fingerprint Cards AB Sweden 15 Follow-On Common Stock Biometric component solutions

07-Mar-2013 NXP NV Netherlands 785 Follow-On Common Stock Semiconductor components

14-Feb-2013 Sequans France 14 Follow-On Common Stock Semiconductor solutions Communications SA 08-Feb-2013 Bango plc UK 10 Follow-On Common Stock Technology solutions for mobile phone

05-Feb-2013 Koninklijke KPN NV Netherlands 3,934 Follow-On Common Stock Broadband Internet, and television service

04-Feb-2013 NXP Semiconductors NV Netherlands 911 Follow-On Common Stock Mixed-signal and standard product solutions 10-Jan-2013 IQE Ltd UK 27 Follow-On Common Stock Advanced semiconductor materials

Number of Deals 10 Average Value ($MM) 598 Total Value ($MM) 5,976

Note: Offerings over $10 million where the issuer is headquartered in Europe

Source: Capital IQ, Strategy Eye, Thomson Reuters, Company data 28 This report may not be reproduced, redistributed or passed to any other person or published in whole or in part for any purpose without the written consent of Piper Jaffray. © 2013 Piper Jaffray Ltd. All rights reserved. TECHNOLOGY, MEDIA & TELECOMMUNICATIONS MONITOR Market and Industry Update 3 - Communications Technology & Hardware

B - Transaction Update

Selected European M&A Transactions – H1 2013

Deal Trans. Multiples Target Acquirer Value EV / EV / Date Target Location Acquirer Location ($MM) Sales EBITDA Target Description

01-Jul-2013 Nokia Siemens Networks Netherlands Nokia Corporation Finland 2,210 N/A N/A Network infrastructure solutions BV 21-Jun-2013 Allen & Heath Ltd UK Electra Private Equity plc UK 66 N/A N/A Digital music dardware components

18-Jun-2013 Alfacam Group NV Netherlands Videohouse NV Netherlands 110 N/A N/A Broadcasting hardware solutions

04-Jun-2013 IPtronics A/S Denmark Mellanox Technologies Israel 48 N/A N/A Fabless semiconductor Ltd 29-May-2013 OJSC Sitronics- Russia JSC Mikron Russia 63 N/A N/A Microelectronic technologies Nanotechnologies 24-May-2013 Allstream Corp Canada Accelero Capital France 504 N/A N/A Information technology solutions

10-May-2013 Axell Wireless Ltd UK Cobham plc UK 130 N/A N/A Cellular broadcast platform

03-May-2013 Allflex USA Inc US BC Partners UK 1,300 N/A N/A Electronic ID products

04-Apr-2013 Nextel del Perú SA Peru Entel Inversiones SA France 415 N/A N/A Wireless communications tools

03-Apr-2013 Ubiquisys Ltd UK Cisco Systems Inc US 310 N/A N/A Femtocells

22-Mar-2013 Abertis Infraestructuras Spain OHL Emisiones SAU Spain 444 5.5x 9.7x Telecommunications infrastructure SA 08-Mar-2013 JDSU UK Ltd UK Arieso Ltd UK 85 N/A N/A Optical networking infrastructure

15-Feb-2013 Labs Inc US Opera Software ASA Norway 155 N/A N/A Mobile video optimization platform

30-Jan-2013 IXXAT Automation GmbH Germany HMS Networks AB Sweden 43 N/A N/A Solutions for data communication

28-Jan-2013 Elektrobit System Test Oy Finland Anite plc UK 42 N/A N/A Radio channel emulation software

14-Jan-2013 Wireless Infrastructure UK Wood Creek Capital US 241 N/A N/A Infrastructure solutions Group Ltd Management LLC Median 5.5x 9.7x Mean 5.5x 9.7x

Number of Deals 16 Average Value ($MM) 385 Total Value ($MM) 6,166

Note: Offerings over $10 million where the issuer is headquartered in Europe

Source: Capital IQ, Strategy Eye, Thomson Reuters, Company data 29 This report may not be reproduced, redistributed or passed to any other person or published in whole or in part for any purpose without the written consent of Piper Jaffray. © 2013 Piper Jaffray Ltd. All rights reserved. TECHNOLOGY, MEDIA & TELECOMMUNICATIONS MONITOR Market and Industry Update 3 - Communications Technology & Hardware

B - Transaction Update

Selected European Private Equity and Venture Capital Activity – H1 2013 Deal Target Value Date Target Location ($MM) Investor(s) Target Description 06-Jun-2013 Solaire Direct SAS France 79 BlackRock, Inc; Dutch Photovotaic components Infrastructure Fund BV; KGAL GmbH & Co KG; Old Mutual plc; The J&J Group 23-May-2013 Hyperoptic Ltd UK 75 Soros Fund Management Fiber-to-the-home broadband services LLC 25-Apr-2013 inexio Informationstechnologie Germany 14 Deutsche Beteiligungs AG Communications and IT network solutions und Telekommunikation KGaA 04-Feb-2013 Ltd 118 Roman Abramovich infrastructure and network technologies 24-Jan-2013 Option NV Belgium 12 Participatiemaatschappij Wireless data communication solutions Vlaanderen NV; Life Science Research Partners 08-Jan-2013 DelfMEMS SAS France 11 Iris Capital; Alliansys-Nord Radio-frequency micro-electro-mechanical-systems Creation SAS; Rhône-Alpes Création SA SCR; CDC Entreprises; Finorpa GIE; INOVAM; Sopartec SA; Alpes Développement Durable Invest, SCR SAS; CapitalAria Number of Deals 6 Average Value ($MM) 51 Total Value ($MM) 309

(1) Private placements over $10 million and financial sponsor deals where issuer/target is headquartered in Europe (2) Firms in bold are the lead investors in the financing round (where disclosed)

Source: Capital IQ, Strategy Eye, Thomson Reuters, Company data 30 This report may not be reproduced, redistributed or passed to any other person or published in whole or in part for any purpose without the written consent of Piper Jaffray. © 2013 Piper Jaffray Ltd. All rights reserved. 3 - Communications Technology & Hardware

C - Industry News

Nokia buys out Samsung to take control of Siemens Networks joint venture 1st July 2013, written by StrategyEye Nokia is set to take over Samsung's share of the profitable network equipment joint venture Nokia Siemens Networks (NSN) in a deal worth USD2.2bn. Nokia has paid a lower price than many analysts expected it would for Samsung's share with CEO Stephen Elop stating that "Nokia Siemens Network has established a clear leadership position in LTE, which provides an attractive growth opportunity.”

Whilst NSN is profitable now the joint venture's journey to profitability has been challenge. After an unsuccessful attempt to sell to private investors, NSN slashed 17,000 jobs, accounting for a quarter of its workforce. After a programme of money saving initiatives the company's profit margins started widening. NSN posted a profit of USD1.2bn in Q1 of 2013 which represented a 117% growth year on year.

This comes as Nokia continues to struggle. The Finland-based phone manufacturer has been performing poorly in the market, posting losses of USD196m during Q1. If figures for NSN continue to show marked improvements over the next few years Bernstein analyst Pierre Ferragu points out that the deal "buys Nokia a future, whatever happens in smartphones and feature phones.“

The deal, which will see SNS undergo a complete overhaul, is set to be completed in Q3 this year. Nokia will pay the first USD1.56bn in cash and the rest will be transferred via a loan to be paid back to Samsung one year after the deal is completed.

Indoor location application to break 1 billion downloads by 2016 20th June 2013, written by Piper Jaffray The “Indoor Location Smartphone Applications” study by ABI Research suggests that while indoor location applications are still at an early stage, the ecosystem necessary to drive mass adoption of indoor location applications will be in place by 2016. Applications are considered across a range of different application categories, such as retail, navigation, enterprise, personal tracking and social, with enhancing services such as advertising, ambient intelligence, augmented reality, photography, and local search. Even at this early stage, it is clear that indoor location will play a major part in the future of mobile, ABI Research states. By 2016, the ecosystem will have evolved sufficiently that ABI Research is forecasting strong adoption of indoor location applications, catalyzed by the increasing availability of in-store applications and services.

LTE-Advanced subscriptions to reach 500 million by the end of 2018 21st June 2013, written by Piper Jaffray A recent study by ABI Research states that LTE-Advanced (LTE-A) subscriptions will be growing at a compound annual growth rate (CAGR) of 295% between 2013 and 2018 to reach 500 million. This will represent 34% of the overall 1.47 billion LTE-related subscriptions. Meanwhile, total LTE subscriptions for 1Q-2013 increased by 37.5% quarter-on-quarter, reaching 108 million.

North America will be the most aggressive LTE-A market, followed by Asia-Pacific and Western Europe. ABI Research predicts North America will commercially launch LTE-A by the end of 2013 and mobile subscriptions will approach 220 million by 2018, contributing 44% of the global LTE-A market. In Asia-Pacific, the LTE-A subscriptions will notch up 159 million by 2018, while in Western Europe, it should reach 55 million.

Slight uptick for global semiconductor sales in April; moderate growth projected for 2013 and 2014 5th June 2013, written by Piper Jaffray Based on the monthly data provided by the Semiconductor Industry Association (SIA), worldwide sales of semiconductors reached $23.62 billion for the month of April 2013, a 0.6 % increase from the previous month when sales were $23.48 billion. Regionally, sequential monthly sales increased in Asia Pacific (2 %), but decreased in the Americas (-0.6 %), Europe (-0.6 %) and Japan (-2.9 %).

Additionally, SIA stated in their sales forecast, that the industry’s worldwide sales will reach $297.8 billion in 2013, a 2.1 % increase from the 2012 sales total. Regionally a year-over-year increases for 2013 in Asia Pacific (5.7 %), Europe (5.3 %) and the Americas (1.6 %), but a sharp decline in Japan (-13.8 %) are projected.

Beyond 2013, the industry is expected to grow steadily and moderately across all regions, according to the forecast. The study predicts 5.1 % growth globally for 2014 ($312.9 billion in total sales) and 3.8 % growth for 2015 ($324.9 billion).

Android to drive global smartphone shipments to 1.5bn by 2017 4th June 2013, written by StrategyEye Smartphone penetration is set to continue increasing over the next few years, with estimates published by Canalys forecasting at least 1.5bn smartphones will be shipped during 2017. Android will account for more than 1bn of these devices by 2017, with the report forecasting Google will see shipments of Android enabled phones double from 470m this year during the period.

Apple will see its share continue to grow in terms of sales but at a slower rate than Android. As a result Canalys projects that Apple will see its share of the market fall to 14.1% from 19.5% by 2017 because of its absence from the low-end smartphone market. Canalys claims that, conversely, offering a variety of cheaper devices means Microsoft's Windows Phone will see its share increase from 2.4% this year to 12.7% by 2017.

Canalys claims smartphones will make up 73% of all phone shipments in four years' time and that in markets like Greater China the number could be as high as 95%.

31 This report may not be reproduced, redistributed or passed to any other person or published in whole or in part for any purpose without the written consent of Piper Jaffray. © 2013 Piper Jaffray Ltd. All rights reserved. 3 - Communications Technology & Hardware

C - Industry News

Worldwide mobile payment transaction value to surpass $235 billion in 2013 4th June 2013, written by Piper Jaffray Worldwide mobile payment transaction values will reach $235.4 billion in 2013, a 44 % increase from 2012 values of $163.1 billion, according to the latest research by Gartner. The number of mobile payment users worldwide will reach 245.2 million in 2013, up from 200.8 million in 2012.

Furthermore Gartner predicts that Asia/Pacific will overtake Africa to become the largest region. Asia/Pacific's transaction value is expected to grow 38 % in 2013 to reach $74 billion. Money transfers and merchandise purchases will account for about 71 % and 21 % of total transaction value in 2013, respectively, making them by far the largest contributors. However, worldwide, people are not purchasing as much because the buying experience on mobile devices has yet to be optimized. People are spending less via mobile devices than via online e-commerce services and at retail outlets. Merchandise purchases account for about 23 % of the total value forecast for 2017.

Money transfer value continues to increase because users are transacting much more frequently (although at lower values) due to the wider availability of services and to transaction costs that are lower than those of traditional bank services. This makes money transfer a leading use case, one that Gartner forecasts to account for almost 69 % of the total value in 2017.

Global IP traffic has increased more than fourfold in the past 5 years, and will increase threefold over the next 5 years 29th May 2013, written by Piper Jaffray Overall, global IP traffic will grow at a compound annual growth rate (CAGR) of 23% till 2017. The Cisco VNI Global IP Traffic Forecast and Methodology Study projects an increase up to 55,553 petabytes per month for 2013, compared to 43,570 petabytes per month in 2012.

The paper also shows that in 2017, global IP traffic will reach 1.4 zettabytes per year, or 120.6 exabytes per month. Moreover Cisco expects the global mobile data traffic to grow with a CAGR of 66% till 2017. Whereas currently mobile IP traffic accounts for 1.6 exabytes per month, the study forecasts that by 2017, 11.2 exabytes of traffic are mobile. This will result in the fact that nearly half of all IP traffic will originate with non-PC devices by 2017.

PC sales down 20.5% in western Europe as tablet competition increases 15th May 2013, written by StrategyEye PC sales in Western Europe declined by a record 20.5% to12.3m units in Q1 as competition from rival devices such as smartphones and tablets continues to increase. Figures from Gartner show that only Apple and Lenovo out of the top five manufacturers experienced growth, with both HP and Acer recording declines of more than 30%. And all PC segments saw a fall, including mobile, desktop, business and consumer sales.

"The PC is the first to fall by the wayside as usage patterns shift toward smartphones and tablets. This ongoing trend will have a profound impact on the size of the installed base of PCs," says Gartner analyst Meike Escherich.

HP remains the biggest PC maker, accounting for 2.42m shipments and 19.7% of the market. This is followed by Acer with 11.7%, Lenovo on 11.6%, Dell on 9.9% and Apple with 7.9%. The downturn is expected to continue through 2013.

Global PC sales are lower than ever with the news that shipments sank by 17% in Q1, rather than the 13.9% decline reported by IDC in April.

Mobile TV and video viewers to exceed 2bn by 2017 15th May 2013, written by StrategyEye More than 2bn people will use mobile and tablet devices to watch TV and video content by 2017. The growth is attributed to the rising popularity in shorter online video content, which can be shared and watched easily via social media. This marketplace is seemingly rife for exploitation and statistics like this are the major factor behind why companies like YouTube are currently trialling monetised channels. The figures, from Juniper, found that a fifth of the 2bn watching content via mobile devices will be made up of users in Western Europe.

"This will have incredible repercussions throughout the mobile space given YouTube comes preinstalled on an immense number of devices and Android's billing options," says report author Sian Rowlands.

32 This report may not be reproduced, redistributed or passed to any other person or published in whole or in part for any purpose without the written consent of Piper Jaffray. © 2013 Piper Jaffray Ltd. All rights reserved. 3 - Communications Technology & Hardware

C - Industry News

Mobile content revenues to pass USD65bn by 2016 8th May 2013, written by StrategyEye Revenue generated from mobile content is expected to reach USD65bn by 2016, with tablets poised to overtake smartphones as the foremost source of growth for content providers. Set to rise by some USD25bn from the USD40bn this year, the predicted growth is expected to be driven largely by sales in games, videos and e-books for tablets. This predicted shift in content revenue comes as tablet sales continue to rise, more than doubling over the past year, and reflect the changing market in which tablets are expected to reach 29% penetration by the end of 2013, up from 18% last year.

The continued trajectory in mobile content revenue comes from a new report by Juniper Research, which found e-books to be the primary revenue stream for tablets thanks to e-reader apps from the likes of Amazon, Nook and Kobo proving as popular as singularly focussed e-reader devices. However, that might change with both free and paid video apps gaining popularity quickly. Together music and video now accounts for almost half of all mobile content revenues. Spending on gaming too is expected to rise as players shift away from dedicated portable consoles, like the Nintendo 3DS and the PS Vita, towards tablets. Mobile devices are also taking a bigger cut of overall spending thanks to socially connected games and in-app purchases generating an increasing amount of revenue.

The report also finds that the way in which people pay for mobile content is beginning to change. Direct carrier billing, like that used by Google Play and BlackBarry App World, has become increasingly popular for its one-click simplicity and ability to carry out instantaneous in-app payments. However, credit and debit card remains the most widely used means of payment for over-the-top storefronts.

By 2016, 40 % of mobile application development projects will leverage cloud mobile back-end services 30th April 2013, written by Piper Jaffray Reports by Gartner state that by 2016, 40 % of mobile application development projects will leverage cloud back-end services. Cloud based “mobile back-end as a service" provides the back-end capabilities required by mobile applications, such as user management, data storage, push notifications and social network integration.

"Cloud mobile back-end services stand to become a key component of the application development ecosystem," said Gordon Van Huizen, research director at Gartner. "As a result, a given organization may begin using them without first developing the requisite understanding of the issues and risks associated with employing cloud services for application infrastructure. What's needed, then, is something of a crash course in the fundamental concerns of deploying application functionality in the cloud."

A primary goal of mobile back-end services is to make the use of cloud capabilities, such as data storage, as natural to the mobile application developer as possible.

Mobile messaging apps overtake SMS for first time 29th April 2013, written by StrategyEye Mobile messaging apps like WhatsApp, Viber and WeChat have overtaken text messages for the first time, a shift that is likely to have a big impact on mobile operators that have relied on SMS as a key source of revenue. Informa, which compiled data for the Financial Times, found that almost 19bn messages were sent every day from chat apps in 2012, compared to 17.6bn texts. And the market is only expected to keep growing, with the firm forecasting that mobile messaging will more than double to 41bn per day this year, more than twice the number of texts.

In many markets, particularly those such as the US and UK where smartphone penetration is high, messaging via the internet is starting to replace SMS. WhatsApp already has more than 200m users, while the likes of Kik, WeChat and MessageMe are all gaining in popularity. This is already having an impact on operators’ revenues, particularly in countries like Spain, the Netherlands and . Informa estimates that in Spain, text revenues fell from EUR1.1bn (USD1.4bn) in 2007 to EUR758.5m (USD992.5m) in 2011 as the number of messages fell by almost a quarter.

And even in markets where SMS revenues aren’t declining, mobile operators are losing out. Separate figures from Ovum estimate that mobile operators lost more than USD23bn in text revenue last year due to the rising popularity of instant messaging apps. And mobile operators are well aware of the threat. By 2014, Informa expects 50bn messages to be sent via messaging apps, compared to around 21bn text messages. But while that may mean there is a growing gap between the two, that doesn’t mean text messages will die out any time soon. And in fact, SMS is still continuing to grow, with the number of text sent still rising and SMS revenues set to increase from USD115bn last year to USD127bn in 2016. For many, texting remains the easiest way to contact friends. And this is particularly the case in emerging mobile markets where consumers typically still use feature phones and rely on SMS because they don’t have the internet connections necessary to use over-the-top messaging apps.

Mobile to account for 15% of all online purchases in 2013 25th April 2013, written by StrategyEye Mobile purchases will be responsible for 15% of all online transactions in the US during 2013. The figures from eMarketer represent an 11% increase from 2012 and almost triple the amount of mobile sales in 2011. By the end of this year half of Americans will have used a mobile device to purchase at least one item. Tablets will account for nearly two-thirds of mobile sales in 2013 despite smartphones making up the majority of the mobile devices owned in the US. Mobile commerce is set to rise further in the future, it is estimated that 25% of online sales in the US will be made via mobile devices by the end of 2017 with 75% of these coming from tablets.

33 This report may not be reproduced, redistributed or passed to any other person or published in whole or in part for any purpose without the written consent of Piper Jaffray. © 2013 Piper Jaffray Ltd. All rights reserved. 3 - Communications Technology & Hardware

C - Industry News

Google to kickstart a 10m-strong smart glass market 25th April 2013, written by StrategyEye Google is set to kickstart interest in a whole new consumer electronics category when it launches its Google Glass devices to the public in 2014. A new report from IHS forecasts that shipments of smart glasses will total almost 10m between 2012 and 2016, with annual sales growing from just 50,000 last year to 6.6m in three years’ time. Currently, Google Glass is only available to app developers that registered as early backers and paid a USD1,500 for access to the devices. But in doing that, IHS suggests Google is driving up interest among a wider audience, helping to spur innovations that should take Google Glass from early adopters to the mass market relatively quickly.

Google Glass is Google’s latest attempt to move into the hardware market, having already launched its own branded smartphones and tablets. But this doesn’t mean that Google is attempting to become a consumer electronics maker. The firm typically hives out manufacturing to a partner, such as Asus or HTC, rather than doing it in-house. And in reality, the move into hardware is as much about software and services as it is about the device itself. As with its smartphones and tablets, Google is using the smart glasses as a means of getting developers building software and apps for its devices, which it can in turn make money on through advertising. Glass could, for example, allow users to see information such as live travel updates, location reviews and recommendations as they explore places.

More than 1m smart watches to ship this year as firms ready offerings 17th April 2013, written by StrategyEye More than 1m smart watches will ship globally this year as a raft of firms including Apple, Samsung, Google and Microsoft ready devices. While smart watches in various incarnations have been on the market for years, the much-hyped arrival of devices such as Apple’s iWatch is set to drive sales to new heights. ABI Research also attributes the rise in sales to increasing smartphone penetration and lower costs for components such as sensors. The stats are indicative of the growing hype around smart watches and wearable tech more broadly as hardware and software firms search for the next big innovation.

Half of european smartphones run on android 22nd March 2013, written by StrategyEye Google’s Android operating system now powers half of European smartphones, according to a new report from comScore, as demand for devices running the OS, such as Samsung's Galaxy S range, continues to climb. Android’s share is only expected to climb on the back of high-profile new releases such as the , released earlier this month. The report looks at the top five European markets, including Germany, France, Italy, Spain and the UK. Apple’s iPhone accounts for a fifth of smartphones in the region, just ahead of Nokia’s Symbian, which is still holding onto 17% of the market, despite poor sales and competition from more innovative rivals in the space. BlackBerry accounts for just 7% of smartphones, while Microsoft’s Windows Phone is yet to make a significant impact with only a 5% share.

Android tablets to outsell iPad for first time this year 13th March 2013, written by StrategyEye Sales of Android tablets are set to overtake the iPad for the first time this year, as a surge in demand for smaller and cheaper devices eats into Apple's market share. IDC estimates that half of all tablets sold are now below eight inches, as consumers increasingly turn to cut-price devices from the likes of Google and Amazon. This means Android will take 48.8% of the market in 2013, just ahead of Apple with 46%, with its drop in market share coming despite the launch of the iPad mini.

“One in every two tablets shipped this quarter was below eight-inches in screen size. And in terms of shipments, we expect smaller tablets to continue growing in 2013 and beyond,” says the IDC. “Vendors are moving quickly to compete in this space as consumers realise that these small devices are often more ideal than larger tablets for their daily consumption habits.”

This interest in cheaper tablets will drive the global market to a record high this year, with IDC raising its forecasts to 190.9m units this year, up from 172.4m. But while this is good news for most manufacturers, Microsoft will continue to struggle, accounting for just 3% of sales as it fails to gain a grip in the market. Another consequence of soaring demand for lower-cost tablets is the death of the dedicated e-reader market, according to IDC, which predicts shipments of devices such as the Nook and Kindle will go into “permanent decline” from 2015 onwards. It seems the e-reader market is declining faster than the IDC previously thought, with the firm lowering its shipment forecasts by around 14% every year until 2016. The prediction chimes with previous reports from IHS iSuppli claiming that e-reader sales have peaked and that growth in the market over the past few years has come to an abrupt end.

The report will add weight to fears that Apple’s huge revenue and profit growth over the past few years is starting to taper, as it continues ceding market share to rivals such as Samsung. The firm’s share of global smartphone sale is also set to peak this year, with research from ABI forecasting that the firm will fall behind Samsung next year. While Apple’s market share has remained relatively stable over the past couple of years, Samsung has seen huge growth, with its share rising from 8% in 2010 to 30% last year.

34 This report may not be reproduced, redistributed or passed to any other person or published in whole or in part for any purpose without the written consent of Piper Jaffray. © 2013 Piper Jaffray Ltd. All rights reserved. 3 - Communications Technology & Hardware

C - Industry News

Global mobile app revenues to hit USD25bn this year 5th March 2013, written by StrategyEye Remarkable growth in the mobile app market is expected to continue, with a new forecast from Gartner predicting that revenues will increase 62% this year to hit USD25bn worldwide this year as consumer demand continues to grow unchecked. The report, seen by the Wall Street Journal, suggests that Google and Apple, which dominate mobile app sales with their App Store and Google Play stores respectively, will continue to reap huge revenues over the next 12 months. The growth looks set to continue in coming years, a previous report from Asymco analyst Horace Dediu, forecasting that daily app downloads for Apple’s iOS operating system will surpass 100m by 2017, underpinning Gartner’s prediction.

Global mobile device shipments to top 2.6bn by 2016 25th February 2013, written by StrategyEye Global demand for mobile internet-connected devices is expected to continue accelerating over the next few years, with new research from Canalys forecasting that shipments will surpass 2.6bn annually by 2016. The tablet sector is expected to drive this growth, with Canalys forecasting that shipments of devices such as Amazon’s Kindle Fire and the iPad will increase at a compound annual growth rate (CAGR) of 35% over the next three years. Smartphone sales will grow slightly more slowly, at 18% CAGR during the period, with adoption slowing in key markets such as the US, where more than half the population already owns a smartphone.

More than half of online adults in Europe to own tablet in 2017 21st February 2013, written by StrategyEye Tablet ownership in Europe is expected to increase significantly over the next few years, climbing from just 14% of internet users last year to more than half of the online population by 2017. This means the number of tablet owners in the region will have more than quadrupled from 33m last year to 147m by 2017, boosted by high penetration of the devices in countries such as the Netherlands, where a fifth of internet users own tablets. The research, from Forrester, indicates that the availability of cheaper devices, such as Google’s Nexus 7 tablet, is driving adoption among younger users, as tablets emerge into the mainstream. “With double-digit growth in tablet uptake across Western Europe in 2012 and further double-digit growth expected, tablets can no longer be considered a fad,” says Forrester.

M-commerce tops list of fastest-growing Android apps 18th February 2013, written by StrategyEye Mobile shopping apps make up seven of the top 15 fastest-growing apps on Android, according to new research from Nielsen that highlights consumers' increasingly willingness to make purchases on smartphones and tablets. The study describes commerce apps as those where consumers can buy digital products, as well as general retail goods and experiences. Under that definition, Amazon's Appstore comes out as the fastest-growing app in the six months to October, with users spending an average of 15.23 minutes on the app per month, up 7.6 times in the period.

Digital purchases appear to be driving m-commerce sales, with most of the retailers seeing increased engagement and reach selling online services. Cashback and vouchers service Quidco was the sixth fastest-growing Android app in the period, with users spending 20.62 minutes on the app during the period – up 350%. Meanwhile Google Play’s Movie and TV app came in ninth place, with time spent browsing up to nearly 11 minutes per month. Supermarket apps are also doing well on mobile, with Tesco named as the fourth fastest-growing commerce app during the period, while ASDA came in 12th place. Growth in this section illustrates the increasing willingness of consumers to shop on mobile, with many citing the convenience of browsing on smartphones for making purchases on the devices. eBay’s mobile app also appears in the top 10 overall most popular Android apps in the UK, according to the report, which claims the app has 43% penetration among Android users. Unsurprisingly Google Play is the most popular app, reaching 95.5% of users, followed by Google Search with nearly 80% and Facebook in third place with nearly 72%.

Mobile commerce continues to gather traction with consumers in key markets such as the UK and US, driven by the increased penetration of smartphones and tablets, as well as improved mobile shopping offerings from retailers. According to research from eMarketer, US mobile commerce revenues hit a record USD25bn last year, up 81% compared to 2011. This growth is only expected to continue through to 2016, when the market will be worth USD90bn.

35 This report may not be reproduced, redistributed or passed to any other person or published in whole or in part for any purpose without the written consent of Piper Jaffray. © 2013 Piper Jaffray Ltd. All rights reserved. 3 - Communications Technology & Hardware

C - Industry News

Time spent in retail apps up 525% 28th January 2013, written by StrategyEye The amount of time consumers in the US and Europe spend looking at retail apps from companies such as Wal-Mart and Gap climbed 525% last year, according to a new report from Flurry, as shoppers increasingly browse for goods on their smartphones and tablets. Retail app usage is outstripping growth in other e- commerce verticals, including price comparison and daily deals sites, with the wider market seeing an increase of 274% in the 12 months to December. Consumers are now spending a bigger portion of the time they spend shopping on mobile using retail apps, up from 15% to 27% and less time on daily deals and online marketplaces, which both saw declines.

Larger screens rule as smartphone-tablet hybrid sales predicted to double 13th January 2013, written by StrategyEye Consumers are increasingly interested in smartphone-tablet hybrids, with sales set to double this year globally to 60.4m, according to new research IHS iSuppli. This is up 136% year on year on the 25.6m devices shifted in 2012 and comes, the firm claims, from the growing range of so-called ‘phablets’ on offer. iSuppli defines the hybrid devices as smartphones with a display of five inches or more and expects their global market share to continue to increase, with shipments eventually topping 146m units by 2016 as more manufacturers enter the fray.

“The move to offer larger-display smartphones reflects the efforts of both device and panel makers to differentiate their products. With consumers demanding more life-like viewing experiences, the trend to offer such devices makes perfect sense, especially considering the increase in rich content that is being made available on smartphones,” says iSuppli analyst, Vinita Jakhanwal.

Mobile app downloads for Apple devices to hit more than 100m per day by 2017 9th January 2013, written by StrategyEye Daily app downloads for Apple’s iOS operating system will surpass 100m by 2017, according to Asymco analyst Horace Dediu, who adds that the daily rate could even hit that milestone two years early. Dediu says that the number of apps that consumers download to their iPhone or iPad per day currently stands at approximately 50m, though that figure was boosted to 65m during the Christmas period. He claims that the rate is growing by around 1m a month as consumers continue to adopt Apple’s smartphone and tablet.

In a separate note, Dediu estimates that apps now account for a third of Apple’s overall annual iTunes revenues, generating approximately USD4bn a year. While iTunes’ non-app offerings such as its core music service and videos still account for the lion’s share of earnings, app growth is far outstripping it, at a rate of 50% compared to 28%. Overall, approximately USD12bn is generated through iTunes every year, says Dediu, with the service costing Apple around USD3.5bn a year to operate.

Overall, consumers downloaded 43.6bn apps worldwide across all platforms last year up to September, according to a recent report from ABI Research, while separate figures from mobile analytics firm Flurry assert that downloads topped a record-breaking 1.76bn between Christmas day and New Year’s Eve alone. Separate ABI stats peg global mobile app revenues at USD30bn for 2012, with that figure set to rise this year.

36 This report may not be reproduced, redistributed or passed to any other person or published in whole or in part for any purpose without the written consent of Piper Jaffray. © 2013 Piper Jaffray Ltd. All rights reserved. 3 - Communications Technology & Hardware

D - Public Market Trading Multiples

Stock Revenues EBITDA EBITDA EBITDA Stock Price Market Enterprise EV / Revenue EV / EBITDA Revenues CAGR EBITDA Margin Margin Margin Company Price 30-Jun-13 Cap Value Dec- 12 Dec- 13 Dec- 14 Dec- 12 Dec- 13 Dec- 14 Dec- 12 Dec- 13 Dec- 14 2011- 14 Dec- 12 Dec- 13 Dec- 14 Dec- 12 Dec- 13 Dec- 14 Currency (Local Ccy) (USD m) (USD m) (USD m) (USD m) (USD m) (USD m) (USD m) (USD m) Diversified Systems Cisco Systems Inc USD 24.33 130,054 98,873 2.1x 2.0x 1.9x 7.1x 6.5x 6.1x 47,113 49,676 52,557 5.8% 13,900 15,322 16,316 29.5% 30.8% 31.0% Ericsson SEK 75.95 37,078 30,876 0.9x 0.9x 0.9x 7.8x 7.1x 6.2x 33,748 34,505 36,015 2.3% 3,948 4,377 5,000 11.7% 12.7% 13.9% Solutions Inc USD 57.73 15,683 14,444 1.7x 1.6x 1.5x 9.7x 8.1x 7.5x 8,698 8,922 9,342 4.4% 1,490 1,777 1,924 17.1% 19.9% 20.6% Zte Corp CNY 12.75 6,853 7,904 0.6x 0.5x 0.4x NM 10.8x 8.8x 13,722 15,773 18,056 8.7% -444 734 897 (3.2%) 4.7% 5.0% Alcatel Lucent Sa EUR 1.40 4,248 5,791 0.3x 0.3x 0.3x 11.0x 6.3x 4.3x 18,778 18,532 18,721 (2.1%) 526 926 1,355 2.8% 5.0% 7.2% Mean 1.1x 1.1x 1.0x 8.9x 7.7x 6.6x 24,412 25,481 26,938 3.8% 3,884 4,627 5,098 11.6% 14.6% 15.5% Median 0.9x 0.9x 0.9x 8.8x 7.1x 6.2x 4.4% 11.7% 12.7% 13.9% Wireline/Optical/Cable Ciena Corp USD 19.43 1,983 2,736 1.5x 1.3x 1.2x 33.4x 14.3x 11.5x 1,869 2,078 2,287 9.2% 82 191 239 4.4% 9.2% 10.4% Arris Group Inc USD 14.35 1,977 1,664 1.2x 0.5x 0.3x 10.5x 4.3x 2.9x 1,354 3,622 4,804 64.0% 158 385 574 11.7% 10.6% 11.9% Infinera Corp USD 10.67 1,236 1,075 2.5x 2.0x 1.8x NM 42.3x 17.5x 438 536 600 14.0% -59 25 62 (13.5%) 4.7% 10.3% Harmonic Inc USD 6.35 719 491 0.9x 1.1x 1.0x 14.0x 8.6x 7.2x 530 455 503 (2.9%) 35 57 68 6.6% 12.5% 13.5% Tellabs Inc USD 1.97 702 131 0.1x 0.2x 0.2x 10.6x 8.4x 2.6x 1,053 863 851 (12.8%) 12 16 51 1.2% 1.8% 6.0% Transmode Holding Ab SEK 80.00 329 274 1.8x 1.7x 1.5x 9.3x 8.2x 7.5x 150 161 178 9.3% 29 33 37 19.7% 20.7% 20.6% Adva Optical Networking Se EUR 3.87 240 186 0.4x 0.4x 0.4x 3.3x 3.5x 3.0x 429 434 470 5.2% 56 53 62 13.1% 12.3% 13.2% Net Insight Ab SEK 1.11 64 38 0.9x 0.9x 0.8x 5.7x 13.3x 7.8x 42 40 46 1.9% 7 3 5 15.9% 7.1% 10.4% Mean 1.2x 1.0x 0.9x 12.4x 12.9x 7.5x 733 1,024 1,217 11.0% 40 95 137 7.4% 9.9% 12.1% Median 1.1x 1.0x 0.9x 10.5x 8.5x 7.3x 7.2% 9.2% 9.9% 11.2% Wireless Apple Inc USD 396.53 372,202 333,065 2.1x 1.9x 1.8x 5.8x 6.1x 5.6x 160,168 175,030 188,761 16.1% 57,106 54,226 59,604 35.7% 31.0% 31.6% Qualcomm Inc USD 61.09 105,553 92,078 4.5x 3.7x 3.3x 12.7x 9.7x 8.8x 20,466 25,161 27,622 20.0% 7,267 9,498 10,477 35.5% 37.7% 37.9% Nokia Oyj EUR 2.85 13,854 9,197 0.2x 0.3x 0.3x NM 5.0x 3.6x 39,224 34,827 35,743 (10.7%) - 1,848 1,834 2,537 (4.7%) 5.3% 7.1% Research In Motion Ltd USD 10.46 5,483 2,557 0.2x 0.2x 0.2x 1.9x 1.6x 1.9x 12,297 12,807 12,480 (12.6%) 1,345 1,599 1,380 10.9% 12.5% 11.1% Mean 1.8x 1.5x 1.4x 6.8x 5.6x 5.0x 58,039 61,956 66,151 3.2% 15,968 16,789 18,499 19.3% 21.6% 21.9% Median 1.2x 1.1x 1.0x 5.8x 5.6x 4.6x 2.7% 23.2% 21.7% 21.3% Terminals and Peripherals Garmin Ltd USD 36.17 7,526 6,287 2.3x 2.5x 2.5x 9.1x 10.9x 10.6x 2,716 2,553 2,505 (3.2%) 695 577 593 25.6% 22.6% 23.7% Gn Store Nord A/s DKK 108.30 3,271 3,407 3.1x 2.9x 2.7x 15.8x 14.1x 12.2x 1,089 1,175 1,259 9.1% 216 241 278 19.8% 20.5% 22.1% Axis Ab SEK 165.80 1,706 1,658 2.7x 2.4x 2.0x 17.9x 15.5x 12.6x 620 697 824 15.9% 93 107 132 14.9% 15.3% 16.0% International Sa USD 7.05 1,191 857 0.4x 0.4x 0.4x 9.4x 8.8x 6.4x 2,154 2,015 1,989 (5.1%) 91 97 134 4.2% 4.8% 6.7% Netgear Inc USD 30.54 1,177 753 0.6x 0.5x 0.5x 5.2x 4.6x 4.0x 1,272 1,423 1,648 11.8% 144 164 187 11.4% 11.5% 11.3% GBP 2.42 1,150 1,313 0.5x 0.5x 0.5x 5.6x 5.5x 5.2x 2,403 2,578 2,599 4.0% 233 240 250 9.7% 9.3% 9.6% Tomtom Nv EUR 3.78 1,092 1,108 0.8x 0.9x 0.9x 4.4x 6.4x 6.0x 1,374 1,210 1,196 (10.3%) 249 172 184 18.1% 14.2% 15.4% Kudelski Sa CHF 11.75 608 786 0.9x 0.8x 0.8x 8.7x 6.0x 5.7x 892 926 954 1.1% 90 131 138 10.1% 14.2% 14.5% D-link Corp TWD 18.35 396 319 0.3x 0.3x 0.2x 10.0x 6.0x 4.0x 1,083 1,045 1,364 7.9% 32 53 81 2.9% 5.1% 5.9% Parrot Sa EUR 21.38 351 245 0.7x 0.7x 0.6x 4.9x 7.3x 4.9x 365 341 379 5.6% 50 34 51 13.7% 9.9% 13.3% Advanced Digital Broadcast HCHF 15.00 88 72 0.2x 0.2x 0.2x 2.1x 1.7x 1.6x 439 456 464 5.1% 35 43 46 7.9% 9.4% 9.8% Mean 1.1x 1.1x 1.0x 8.5x 7.9x 6.7x 1,310 1,311 1,380 3.8% 175 169 188 12.6% 12.4% 13.5% Median 0.7x 0.7x 0.6x 8.7x 6.4x 5.7x 5.1% 11.4% 11.5% 13.3% Enterprise / Data Networking Juniper Networks Inc USD 19.31 9,776 8,117 1.9x 1.8x 1.7x 15.4x 8.0x 6.7x 4,365 4,498 4,779 2.4% 528 1,011 1,203 12.1% 22.5% 25.2% F5 Networks Inc USD 68.80 5,421 4,899 3.5x 3.3x 2.9x 10.1x 8.4x 7.5x 1,397 1,500 1,676 11.5% 486 580 656 34.8% 38.7% 39.2% Riverbed Technology Inc USD 15.56 2,543 2,657 3.2x 2.5x 2.2x 16.0x 8.4x 7.3x 837 1,076 1,198 18.1% 167 315 363 19.9% 29.2% 30.3% Polycom Inc USD 10.53 1,817 1,124 0.8x 0.8x 0.7x 14.6x 5.3x 4.5x 1,393 1,416 1,513 2.6% 77 212 248 5.5% 14.9% 16.4% Allot Communications Ltd USD 13.71 444 309 2.9x 2.8x 2.3x NM 15.3x 8.9x 105 111 135 20.0% -4 20 35 (3.8%) 18.2% 25.9% Procera Networks Inc USD 13.73 282 166 2.8x 2.2x 1.7x 26.7x 14.4x 6.4x 60 77 97 29.6% 6 11 26 10.4% 14.9% 26.7% Batm Advanced CommunicatiGBP 0.16 98 57 0.5x 0.5x 0.5x 54.1x 13.2x 7.1x 108 110 117 1.9% 1 4 8 1.0% 3.9% 6.8% Mean 2.2x 2.0x 1.7x 22.8x 10.5x 6.9x 1,181 1,255 1,359 12.3% 180 308 363 11.4% 20.3% 24.4% Median 2.8x 2.2x 1.7x 15.7x 8.4x 7.1x 11.5% 10.4% 18.2% 25.9% Communication Software Amdocs Ltd USD 37.09 6,000 5,022 1.5x 1.5x 1.4x 8.1x 7.4x 7.1x 3,275 3,391 3,528 3.3% 620 674 708 18.9% 19.9% 20.1% Nuance Communications Inc USD 18.40 5,847 7,187 4.1x 3.6x 3.3x 15.7x 10.1x 9.3x 1,733 2,020 2,158 15.5% 458 709 772 26.4% 35.1% 35.8% Neustar Inc USD 48.68 3,203 3,446 4.1x 3.8x 3.5x 9.3x 7.7x 7.1x 831 904 978 16.4% 370 447 488 44.5% 49.5% 49.9% Synchronoss Technologies In USD 30.87 1,223 1,166 4.3x 3.4x 2.8x 18.6x 10.8x 8.5x 274 344 416 22.0% 63 108 137 22.9% 31.4% 32.9% Opera Software Asa NOK 47.00 937 883 4.1x 3.0x 2.4x 14.7x 11.4x 8.0x 216 291 374 32.8% 60 77 111 27.8% 26.6% 29.5% Monitise Plc GBP 0.34 818 665 8.1x 4.8x 3.3x NM NM 92.6x 83 140 200 72.5% -28 -23 7 (33.5%) (16.2%) 3.6% Gameloft Se EUR 5.38 556 484 1.8x 1.5x 1.3x 12.1x 8.7x 7.0x 271 318 358 18.8% 40 55 69 14.8% 17.4% 19.2% Access Co Ltd JPY 72400.00 286 50 0.4x 0.4x 0.4x 2.6x 1.6x 1.4x 120 128 135 (3.0%) 19 30 34 15.7% 23.8% 25.4% Telecommunication Systems USD 2.33 137 238 0.5x 0.5x 0.5x 5.1x 5.1x 4.7x 487 443 473 3.6% 46 46 51 9.5% 10.4% 10.8% Onmobile Global Ltd INR 28.65 55 29 0.2x 0.2x 0.2x 1.2x 1.0x 0.8x 118 133 150 13.3% 25 30 36 21.0% 22.9% 24.2% Smith Micro Software Inc USD 1.06 39 11 0.3x 0.2x 0.2x NM NM 2.5x 43 53 67 4.9% -22 - 10 5 (51.5%) (19.3%) 6.8% Mean 2.7x 2.1x 1.8x 9.7x 7.1x 13.5x 677 742 803 18.2% 150 195 220 10.6% 18.3% 23.5% Median 1.8x 1.5x 1.4x 9.3x 7.7x 7.1x 15.5% 18.9% 22.9% 24.2% European Computing, Storage, Imaging and Payment Hardware Compagnie Industrielle Et FinEUR 51.20 3,532 3,629 2.3x 2.0x 1.8x 13.4x 10.8x 9.4x 1,568 1,781 1,972 14.9% 271 336 387 17.3% 18.9% 19.6% Wincor Nixdorf Ag EUR 41.66 1,793 1,941 0.6x 0.6x 0.6x 8.4x 7.5x 6.6x 3,079 3,207 3,317 3.1% 231 260 294 7.5% 8.1% 8.9% Communications Plc GBP 1.41 1,373 1,125 2.4x 2.4x 2.2x 8.5x 9.4x 8.5x 472 475 511 2.8% 132 119 132 27.9% 25.1% 25.8% Bull Sa EUR 2.44 383 172 0.1x 0.1x 0.1x 1.8x 1.8x 1.5x 1,671 1,687 1,687 (0.1%) 95 93 112 5.7% 5.5% 6.6% Xyratex Ltd USD 10.06 277 160 0.1x 0.2x 0.2x 4.0x 9.9x 20.9x 1,134 861 865 (15.3%) 40 16 8 3.5% 1.9% 0.9% Lacie Sa EUR 4.50 212 158 0.5x NA NA 5.2x NA NA 342 NA NA NA 30 NA NA 8.9% NA NA Mean 1.0x 1.1x 1.0x 6.9x 7.9x 9.4x 1,378 1,602 1,671 1.1% 133 165 186 11.8% 11.9% 12.4% Median 0.5x 0.6x 0.6x 6.8x 9.4x 8.5x 2.8% 8.2% 8.1% 8.9% European Semiconductor Device and IP Arm Holdings Plc GBP 7.95 16,852 16,019 18.3x 15.1x 12.9x 46.7x 31.3x 25.0x 875 1,062 1,244 18.6% 343 512 641 39.2% 48.2% 51.5% Infineon Technologies Ag EUR 6.43 9,041 6,821 1.4x 1.4x 1.2x 6.0x 6.4x 5.1x 5,031 5,015 5,469 1.9% 1,144 1,073 1,342 22.7% 21.4% 24.5% Stmicroelectronics Nv EUR 6.92 8,192 7,194 0.8x 0.9x 0.8x 25.2x 10.5x 5.2x 8,493 8,327 8,547 (4.2%) 286 685 1,395 3.4% 8.2% 16.3% Nxp Semiconductors Nv USD 31.02 7,756 10,849 2.5x 2.3x 2.1x 10.6x 8.3x 7.2x 4,358 4,738 5,120 6.9% 1,026 1,312 1,515 23.5% 27.7% 29.6% Csr Plc GBP 5.39 1,351 1,034 1.0x 1.1x 1.1x 14.7x 8.0x 7.4x 1,025 957 905 2.3% 70 130 139 6.8% 13.5% 15.4% Imagination Technologies GrGBP 2.87 1,158 1,084 5.0x 3.9x 3.3x 26.1x 16.7x 12.4x 218 279 333 23.1% 42 65 88 19.1% 23.2% 26.3% Ams Ag CHF 69.80 1,069 1,049 2.1x 2.0x 1.8x 7.2x 7.0x 5.9x 504 533 595 18.4% 146 149 179 28.9% 27.9% 30.0% Melexis Nv EUR 16.16 908 924 2.9x 2.7x 2.5x 10.0x 9.6x 8.8x 321 342 370 7.2% 92 96 105 28.8% 28.0% 28.5% Dialog Semiconductor Plc EUR 9.62 858 722 0.9x 0.9x 0.8x 5.8x 5.3x 4.2x 774 831 960 22.1% 125 135 171 16.1% 16.3% 17.8% Nordic Semiconductor Asa NOK 18.70 501 468 3.6x 3.6x 2.6x 17.3x 24.1x 11.7x 132 131 178 8.5% 27 19 40 20.5% 14.9% 22.5% U Blox Holding Ag CHF 61.00 403 341 1.9x 1.5x 1.3x 9.2x 7.5x 6.6x 183 228 255 24.6% 37 46 52 20.3% 20.0% 20.3% Wolfson Microelectronics Plc GBP 1.58 281 246 1.4x 1.1x 1.0x NM 17.2x 6.9x 180 221 257 17.9% 2 14 36 0.9% 6.5% 13.9% Micronas Semiconductor HolCHF 6.85 215 35 0.2x 0.2x 0.2x 1.0x 1.3x 0.9x 178 168 190 4.3% 34 27 41 19.3% 16.3% 21.3% Mean 3.2x 2.8x 2.4x 15.0x 11.8x 8.2x 1,713 1,756 1,879 11.7% 260 328 442 19.2% 20.9% 24.5% Median 1.9x 1.5x 1.3x 10.3x 8.3x 6.9x 8.5% 20.3% 20.0% 22.5%

Source: Thomson Reuters, Company financials 37 This report may not be reproduced, redistributed or passed to any other person or published in whole or in part for any purpose without the written consent of Piper Jaffray. © 2013 Piper Jaffray Ltd. All rights reserved. 3 - Communications Technology & Hardware

D - Public Market Trading Multiples (cont’d)

Stock Revenues EBITDA EBITDA EBITDA Stock Price Market Enterprise EV / Revenue EV / EBITDA Revenues CAGR EBITDA Margin Margin Margin Company Price 30-Jun-13 Cap Value Dec- 12 Dec- 13 Dec- 14 Dec- 12 Dec- 13 Dec- 14 Dec- 12 Dec- 13 Dec- 14 2011- 14 Dec- 12 Dec- 13 Dec- 14 Dec- 12 Dec- 13 Dec- 14 Currency (Local Ccy) (USD m) (USD m) (USD m) (USD m) (USD m) (USD m) (USD m) (USD m) European Semiconductor Capital Equipment Asml Holding Nv EUR 60.62 35,207 32,772 5.3x 5.2x 4.0x 18.7x 20.3x 13.8x 6,150 6,342 8,096 3.3% 1,749 1,613 2,371 28.4% 25.4% 29.3% Asm International Nv EUR 25.93 2,126 1,392 0.8x 2.0x 2.4x 7.3x 18.0x 13.7x 1,843 696 592 (34.7%) 192 77 102 10.4% 11.1% 17.2% Aixtron Se EUR 12.92 1,706 1,420 4.8x 4.3x 2.8x NM NM 18.6x 296 329 509 (13.8%) - 149 -66 76 (50.2%) (20.0%) 15.0% Be Semiconductor Industries EUR 7.93 413 311 0.9x 0.8x 0.7x 6.6x 5.9x 3.9x 356 367 433 0.6% 47 53 79 13.3% 14.3% 18.4% Soitec Sa EUR 2.04 364 446 1.2x 0.9x 0.7x NM NM 6.7x 361 518 625 15.4% - 106 0 67 (29.4%) 0.0% 10.7% Muehlbauer Holding Ag & Co EUR 18.89 154 141 0.5x 0.4x 0.4x 4.3x 3.0x 2.5x 312 337 368 9.9% 32 47 56 10.4% 13.9% 15.2% Mean 2.2x 2.3x 1.8x 9.2x 11.8x 9.9x 1,553 1,431 1,771 (3.2%) 294 287 458 (2.8%) 7.5% 17.6% Median 1.1x 1.4x 1.5x 6.9x 12.0x 10.2x 2.0% 10.4% 12.5% 16.2% European Electronic Components and Supply Chain Gemalto Nv EUR 69.56 7,958 7,494 2.6x 2.3x 2.1x 17.6x 14.3x 12.0x 2,919 3,203 3,558 10.7% 426 525 625 14.6% 16.4% 17.6% Electrocomponents Plc GBP 2.43 1,620 1,878 1.0x 1.0x 0.9x 9.4x 9.1x 8.2x 1,886 1,924 2,013 2.1% 199 207 229 10.5% 10.8% 11.4% Huber & Suhner Ag CHF 42.20 901 743 1.0x 0.9x 0.9x 10.6x 7.9x 7.0x 737 804 868 2.7% 70 94 106 9.5% 11.7% 12.2% Laird Plc GBP 1.77 720 881 1.1x 1.1x 1.0x 6.3x 6.6x 6.0x 789 834 887 6.0% 140 134 148 17.8% 16.0% 16.6% Also Holding Ag CHF 47.00 638 761 0.1x 0.1x 0.1x 7.9x 6.3x 6.0x 6,655 6,801 6,923 1.8% 96 120 127 1.4% 1.8% 1.8% Nolato Ab SEK 116.00 452 417 0.7x 0.6x 0.6x 6.4x 4.9x 5.2x 574 688 677 15.4% 65 84 80 11.4% 12.3% 11.8% Tt Electronics Plc GBP 1.53 367 299 0.4x 0.4x 0.4x 4.4x 3.7x 3.3x 723 773 807 1.5% 68 81 91 9.4% 10.5% 11.3% Esprinet Spa EUR 3.25 221 144 0.1x 0.1x 0.1x 2.8x 2.8x 2.8x 2,511 2,499 2,522 (2.6%) 51 52 51 2.0% 2.1% 2.0% At & S Austria Technologie & EUR 6.44 217 499 0.7x 0.7x 0.7x 3.8x 3.6x 3.6x 695 728 752 4.5% 130 138 139 18.6% 18.9% 18.4% Mean 0.9x 0.8x 0.7x 7.7x 6.6x 6.0x 1,943 2,028 2,112 4.7% 138 159 177 10.6% 11.2% 11.5% Median 0.7x 0.7x 0.7x 6.4x 6.3x 6.0x 2.7% 10.5% 11.7% 11.8% Internet Infrastructure Equinix Inc USD 184.72 9,117 11,974 6.3x 5.4x 4.7x 14.6x 11.8x 10.1x 1,896 2,206 2,546 17.5% 818 1,013 1,181 43.1% 45.9% 46.4% Rackspace Hosting Inc USD 37.89 5,233 5,060 3.9x 3.3x 2.8x 12.0x 11.1x 9.3x 1,309 1,522 1,780 20.2% 423 455 544 32.3% 29.9% 30.6% Telecity Group Plc GBP 10.14 3,117 3,502 8.2x 7.0x 6.1x 17.8x 14.7x 12.5x 429 502 577 16.7% 196 238 280 45.8% 47.4% 48.6% Iomart Group Plc GBP 2.70 428 424 6.9x 5.8x 5.2x 18.7x 14.8x 13.0x 62 74 82 20.0% 23 29 33 36.8% 38.8% 39.7% Mean 6.3x 5.4x 4.7x 15.8x 13.1x 11.2x 924 1,076 1,246 18.6% 365 434 510 39.5% 40.5% 41.3% Median 6.6x 5.6x 4.9x 16.2x 13.3x 11.3x 18.7% 40.0% 42.4% 43.0% Overall Mean 2.1x 1.8x 1.6x 11.3x 9.4x 8.4x 8.5% 12.9% 16.4% 19.2% Overall Median 1.2x 1.1x 1.0x 9.3x 8.1x 6.9x 5.8% 13.2% 14.9% 16.6%

Source: Thomson Reuters, Company financials 38 This report may not be reproduced, redistributed or passed to any other person or published in whole or in part for any purpose without the written consent of Piper Jaffray. © 2013 Piper Jaffray Ltd. All rights reserved. TECHNOLOGY, MEDIA & TELECOMMUNICATIONS MONITOR Market and Industry Update Disclaimer

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