E-Commerce Industry Insight September 2020

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E-Commerce Industry Insight September 2020 E-Commerce Industry Insight | September 2020 E-Commerce – M&A Market Overview E-Commerce transaction activity has been strong with favorable valuation trends

U.S. Number of Transactions by Buyer Type U.S. E-Commerce Transaction Multiples

28.5x 28.5x 27.8x

7 1 7 5 8 4 3 5 16.8x 12.2x 15.2x 6 13.2x 54 53 48 10.8x 44 44 45 7.9x 40 36 8.0x 25 2.0x 0.9x 0.7x 0.7x 0.7x 1.0x 1.1x 0.7x

2012 2013 2014 2015 2016 2017 2018 2019 2020 2012 2013 2014 2015 2016 2017 2018 2019 2020 YTD YTD Strategic Financial EV / EBITDA EV / Revenue

Source: Capital IQ, data as of September 2020.

www.peakstone.com 1 E-Commerce Industry Insight | September 2020 Peakstone E-Commerce Index – Trading Statistics

Relative Stock Performance

140%

120% E-Commerce: 116% 100% S&P 500: 69% 80%

60%

40%

20%

-20%

-40% Peakstone E-Commerce Index AMZN, BABA, EBAY, W, ASC, VIPS, STMP, SFLY, LE, PETS, FLWS, OSTK

Source: Capital IQ, data as of September 2020 Note: Peakstone indexes are equally weighted www.peakstone.com 2 E-Commerce Industry Insight | September 2020 Peakstone E-Commerce Index – Trading Statistics

Comparable Valuation Trends – Enterprise Value / EBITDA

25.0x

20.0x S&P 500: 12.5x E-Commerce: 12.0x

15.0x

10.0x

5.0x

0.0x Peakstone E-Commerce Index AMZN, BABA, EBAY, W, ASC, VIPS, STMP, SFLY, LE, PETS, FLWS, OSTK

Source: Capital IQ, data as of September 2020 Note: Peakstone indexes are equally weighted www.peakstone.com 3 E-Commerce Industry Insight | September 2020 Selected Public Trading Comparables

Peakstone E-Commerce Index

($ in millions) Market Enterprise Enterprise Value / Forward Gross EBITDA Company Name Cap Value Revenue EBITDA EBIT P/E Ratio Margin % Margin %

E-Commerce Amazon.com, Inc. $1,550,319 $1,570,329 4.9x 35.2x 94.4x 88.7x 40% 12% Alibaba Group Holding Limited 733,471 715,613 9.2x 34.1x 51.0x 27.6x 45% 27% eBay Inc. 36,730 40,518 3.6x 11.3x 15.2x 14.4x 77% 30% Wayfair Inc. 28,020 28,595 2.5x NM NM NM 26% -3% Vipshop Holdings Limited 11,478 10,269 0.8x 9.6x 12.7x 12.0x 22% 7% ASOS Plc 6,772 7,389 1.9x 50.4x 89.2x 48.2x 48% 4% 1-800-FLOWERS.COM, Inc. 1,611 1,533 1.0x 10.4x 19.0x 21.8x 42% 8% Overstock.com, Inc. 3,115 2,930 1.6x NM NM NM 22% -2% Stamps.com Inc. 4,184 3,953 6.0x 23.9x 29.7x 34.7x 74% 24% Lands' End, Inc. 471 837 0.6x 9.2x 18.5x 120.5x 42% 6% PetMed Express, Inc. 622 535 1.8x 14.6x 15.5x 19.2x 29% 12%

E-Commerce Median $5,478 $5,671 1.9x 12.9x 18.7x 24.7x 42% 9% 0 Total E-Commerce Median $5,478 $5,671 1.9x 12.9x 18.7x 24.7x 42% 9%

Source: Capital IQ, data as of August 2019

www.peakstone.com 4 E-Commerce Industry Insight | September 2020 Selected Precedent M&A Transactions

Selected E-Commerce Transactions

Transaction Date Target / Issuer Size ($mm) Buyers / Investors EV / EBITDA Transaction Comments

Flight Centre Travel Group Limited (ASX:FLT) acquired WhereTo on June 12, 2020. Flight Centre Travel Group 08/05/2020 WhereTo $13 - Flight Centre will integrate WhereTo into products and services in both its Limited (ASX:FLT) Corporate Traveler and FCM Travel Solutions brands.

800-Flowers, Inc. entered into an Equity Purchase Agreement to acquire 02/18/2020 PersonalizationMall.com, LLC $245 800-Flowers, Inc. - PersonalizationMall.com, LLC from Bed Bath & Beyond Inc. (NasdaqGS:BBBY) for approximately $250 million on February 14, 2020.

Five Sears Outlet Stores Of A Team Sales, LLC acquired five Sears Outlet stores from Franchise Group, Inc. 10/23/2019 $15 A Team Sales, LLC - Franchise Group, Inc. (OTCPK:FRGA) for $15 million on October 23, 2019.

Driven Deliveries, Inc. (OTCPK:DRVD) signed a letter of intent to acquire Budee Inc. Driven Deliveries, Inc. 08/27/2019 Budee Inc. $12 - for $10.3 million on August 27, 2019. Driven Deliveries, Inc. (OTCPK:DRVD) signed a (OTCPK:DRVD) definitive agreement to acquire Budee Inc. on February 27, 2020.

Steven Madden, Ltd. (NasdaqGS:SHOO) acquired Greats Brand, LLC for $17.8 Steven Madden, Ltd. 08/12/2019 Greats Brand, LLC $18 - million on August 9, 2019. The acquisition was completed for $12.8 million in cash (NasdaqGS:SHOO) net of cash of 0.29 million, plus an earnout of $5 million.

Etsy, Inc. (NasdaqGS:ETSY) entered into an agreement and plan of merger to 07/22/2019 Reverb Holdings, Inc. $275 Etsy, Inc. (NasdaqGS:ETSY) - acquire Reverb Holdings, Inc. for approximately $280 million on July 21, 2019.

Source: Capital IQ, data as of August 2019

www.peakstone.com 5 E-Commerce Industry Insight | September 2020 Selected Precedent M&A Transactions (cont.)

Selected E-Commerce Transactions

Transaction Date Target / Issuer Size ($mm) Buyers / Investors EV / EBITDA Transaction Comments

Certain funds managed by Apollo Global Management, LLC entered into a definitive Apollo Global Management, 06/10/2019 Shutterfly, Inc. $2,931 10.0x agreement to acquire Shutterfly, Inc. (NasdaqGS:SFLY) for $1.9 billion on June 10, Inc. (NYSE:APO) 2019.

PlanetArt entered into a non-binding letter of intent to acquire Provide Creations, 06/03/2019 Provide Creations, Inc. $18 PlanetArt, LLC - Inc from FTD Companies, Inc. (OTCPK:FTDC.Q) on June 3, 2019. PlanetArt entered into a definitive asset purchase agreement to acquire Provide Creations, Inc.

Oisix ra daichi Inc. (TSE:3182) agreed to acquire Three Limes, Inc. from Andy Levitt, 04/25/2019 Three Limes, Inc. $30 Oisix ra daichi Inc. (TSE:3182) - Brian Greenfield and other shareholders for $21 million on April 24, 2019. The consideration includes the earn-out consideration at $17 million.

World Co., Ltd. (TSE:3612) agreed to acquire an additional 53.2% stake in Original, 03/25/2019 Original, Inc. $20 World Co., Ltd. (TSE:3612) - Inc. from Jin Koh for approximately ¥2.2 billion on March 25, 2019. Under the terms, World Co. will acquire 0.91 million shares.

Expedia Group Inc. (NasdaqGS:EXPE) (‘Expedia’) made a proposal to acquire Liberty Expedia Group, Inc. 02/04/2019 Liberty Expedia Holdings, Inc. $22,436 10.6x Expedia Holdings Inc. (NasdaqGS:LEXE.A) (‘Liberty’) from John C. Malone, T. Rowe (NasdaqGS:EXPE) Price Associates, Inc., Dimensional Fund Advisors L.P., The Vanguard Group, Inc.

Farfetch Limited (NYSE:FTCH) entered into a definitive agreement to acquire 12/12/2018 Stadium Goods $250 Farfetch Limited (NYSE:FTCH) - Stadium Goods for $250 million on December 12, 2018.

Source: Capital IQ, data as of September 2020

www.peakstone.com 6 E-Commerce Industry Insight | September 2020 Peakstone Selected E-Commerce Transactions

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Contact Alex Fridman Gerald Bobal Managing Director Analyst [email protected] [email protected] 312-204-7300 312-204-7347