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Investment Technology April 2018 SECTORWATCH

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Investment Technology April 2018 SECTORWATCH SECTORWATCH: Investment Technology April 2018 SECTORWATCH: Investment Technology 7 Mile Advisors appreciates the opportunity to present this confidential information to the Company. This document is meant to be delivered only in conjunction with a verbal presentation, and is not authorized for distribution. Please see the Confidentiality Notice & Disclaimer at the end of the April 2018 document. All data cited in this document was believed to be accurate at the time of authorship and came from publicly available sources. Neither 7 Mile Advisors nor 7M Securities make warranties or representations as to the accuracy or completeness of third-party data contained herein. This document should be treated as confidential and for the use of the intended recipient only. Please notify 7 Mile Advisors if it was distributed in error. Sector Dashboard . Public Basket Performance . Operational Metrics . Valuation Comparison . Recent Deals . Appendix OVERVIEW Dashboard summary metrics on the sector, with commentary on About Us market momentum by comparing the most recent 12- 7MA provides Investment Banking & Advisory Services to the month performance against the last 3-year averages Business Services and Technology Industries globally. We advise on M&A and private capital transactions, and provide market assessments and benchmarking. As a close knit team with a long history together and a laser focus on our target markets, we Public Basket Performance help our clients sell their companies, raise capital, grow through acquisitions, and evaluate new markets. summary valuation and operating metrics for a basket of comparable public companies Sectorwatch We publish sectorwatch, a review of M&A and operational trends in the industries we focus. Valuation Comparison a more graphical, detailed comparison of valuation multiples for the public basket Let us know if we can help Contact us if there are ways we can assist your M&A or financing strategy. Recent Deals the most recently announced sector deals 3 3 All Rights Reserved to 7 Mile Advisors All Rights Reserved to 7 Mile Advisors Operating Metrics DASHBOARD Revenue Growth Momentum Median LTM GP Margin % 39.8% 1 - year revenue growth compared to revenue growth 0.1% average for last 3 years Current revenue growth rate exceeds the average of the last 3 years by this amount, indicating that market momentum is increasing Median LTM EBITDA Margin % 23.0% Pricing / Gross Margin Momentum 1 - year gross profit % compared to gross profit % Median LTM Rev. Growth % 13.2% -0.6% average for last 3 years Current gross profit margin is less than the average of the last 3 years gross profit margins, indicating customer pricing power 0% 8% 16% 24% 32% 40% Profitability Momentum Valuation 1 - year EBITDA % compared to EBITDA % average for 1.1% last 3 years Median Price / LTM Earnings Current EBITDA margin exceeds the average of the last 3 years EBITDA margin 31.2x by this amount, a condition that may attract new entrants Median TEV / LTM EBIT 21.7x PUBLIC BASKET CONSTITUENTS NasdaqGS:FNGN NasdaqGS:SEIC NYSE:BR Median TEV / LTM EBITDA NYSE:DST ASX:CPU ASX:IRE 18.3x NasdaqGS:SSNC LSE:FDSA NYSE:ENV CPSE:SIM Median TEV / LTM Revenue 4.0x 0x 7x 14x 21x 28x 35x 4 All Rights Reserved to 7 Mile Advisors PUBLIC BASKET Rev LTM Rev Growth EBITDA TEV / Rev TEV / Rev / FTE Company TEV $m $m YoY GP % % X EBITDA X # FTEs $k Financial Engines, Inc. 1,867 481 13% 56% 23% 3.9 16.8 935 514 DST Systems, Inc. 5,502 2,218 42% 20% 20% 2.5 11.2 14,200 156 SS&C Technologies Holdings, Inc. 12,017 1,675 13% 47% 38% 7.2 19.1 8,287 202 SimCorp A/S 2,655 412 16% 61% 27% 6.3 23.4 1,547 267 SEI Investments Co. 10,711 1,527 9% 76% 28% 7.0 18.4 3,616 422 Computershare Limited 8,355 2,230 10% 20% 25% 3.8 15.4 17,706 126 Fidessa group plc 2,089 478 7% 58% 19% 4.2 22.3 1,705 281 Broadridge Financial Solutions, Inc. 13,286 4,292 24% 26% 19% 3.1 16.8 10,000 429 IRESS Limited 1,380 336 10% 33% 23% 4.2 18.3 1,881 179 Envestnet, Inc. 2,591 684 18% 29% 11% 3.8 34.1 3,516 194 Average 6,045 1,433 16% 43% 23% 4.6 19.6 6,339 277 Median 4,078 1,105 13% 40% 23% 4.0 18.3 3,566 234 share price as of 09Apr18 5 All Rights Reserved to 7 Mile Advisors PUBLICBASKETVALUATIONTRENDS 10x 15x 20x 25x 0x 5x Apr-13 Jul-13 Oct-13 Jan-14 TEV/EBITDA -Average TEV/EBITDA -Median TEV/EBITDA Apr-14 Jul-14 Oct-14 Jan-15 Apr-15 Jul-15 16.9x Oct-15 4.3x Jan-16 TEV/Revenue -Average TEV/Revenue -Median TEV/Revenue Apr-16 Jul-16 Oct-16 Jan-17 Apr-17 Jul-17 Oct-17 Jan-18 Apr-18 25x 10x 15x 20x 0x 5x 0x 1x 2x 3x 4x 5x 6x Jul-13 Jul-13 PublicRevenueMultiples OverTime PublicEBITDAMultiples OverTime Oct-13 Oct-13 Jan-14 Jan-14 TEV/Revenue -Median TEV/Revenue Apr-14 TEV/EBITDA -Median Apr-14 Jul-14 Jul-14 Oct-14 Oct-14 Jan-15 Jan-15 Apr-15 Apr-15 Jul-15 Jul-15 Oct-15 Oct-15 Jan-16 Jan-16 TEV/EBITDA -Average TEV/EBITDA TEV/Revenue -Average Apr-16 Apr-16 Jul-16 Jul-16 Oct-16 Oct-16 All Rights Reserved to 7 Mile Advisors Mile 7 to Reserved Rights All Jan-17 Jan-17 Apr-17 Apr-17 Jul-17 Jul-17 Oct-17 Oct-17 Jan-18 Jan-18 6 Apr-18 Apr-18 OPERATIONAL METRICS LTM REVENUE GROWTH % LTM GROSS PROFIT MARGIN % LTM EBITDA % SS&C Technologies DST Systems, Inc. 42.5% SEI Investments Co. 75.8% Holdings, Inc. 37.5% Broadridge Financial SimCorp A/S SEI Investments Co. 28.2% Solutions, Inc. 24.4% 61.4% Envestnet, Inc. 18.3% Fidessa group plc 58.3% SimCorp A/S 26.8% SimCorp A/S 16.0% Financial Engines, Inc. 55.7% Computershare Limited 24.6% SS&C Technologies Financial Engines, Inc. Financial Engines, Inc. 23.2% 13.3% Holdings, Inc. 47.1% SS&C Technologies IRESS Limited IRESS Limited 22.8% Holdings, Inc. 13.1% 32.5% IRESS Limited 10.3% Envestnet, Inc. 29.3% DST Systems, Inc. 19.7% Broadridge Financial Computershare Limited Fidessa group plc 18.7% 9.8% Solutions, Inc. 25.9% Broadridge Financial SEI Investments Co. 8.9% Computershare Limited 20.4% Solutions, Inc. 18.5% Fidessa group plc 6.6% DST Systems, Inc. 19.7% Envestnet, Inc. 11.3% Median 13.2% Median 39.8% Median 23.0% - 10% 20% 30% 40% 50% - 30% 60% 90% - 10% 20% 30% 40% 50% 7 All Rights Reserved to 7 Mile Advisors OPERATIONAL METRICS LTM Rev. per FTE x 000's Accounts receivable turnover Avg days sales outstanding Financial Engines, Inc. $514 Envestnet, Inc. 14.27 SimCorp A/S 85.57 Broadridge Financial $429 Solutions, Inc. IRESS Limited 10.78 Financial Engines, Inc. 83.95 SEI Investments Co. $422 Broadridge Financial SEI Investments Co. 72.44 Solutions, Inc. 7.87 Fidessa group plc $281 SS&C Technologies Fidessa group plc 71.45 Holdings, Inc. 6.91 SimCorp A/S $267 DST Systems, Inc. 6.04 Computershare Limited 63.45 SS&C Technologies Computershare Holdings, Inc. $202 DST Systems, Inc. 60.38 Limited 5.75 Envestnet, Inc. $194 SS&C Technologies Holdings, Fidessa group plc 5.11 Inc. 52.86 IRESS Limited $179 Broadridge Financial SEI Investments Co. 5.04 Solutions, Inc. 46.37 Financial Engines, DST Systems, Inc. $156 IRESS Limited 33.87 Inc. 4.35 Computershare Limited $126 SimCorp A/S 4.27 Envestnet, Inc. 25.57 Median $186 Median 5.90 Median 61.91 $- $200 $400 $600 0x 5x 10x 15x 20x - 20 40 60 80 100 8 All Rights Reserved to 7 Mile Advisors VALUATION TEV / LTM Revenue TEV / LTM EBITDA Price / LTM Earnings SS&C Technologies 7.2 Envestnet, Inc. 34.1 Financial Engines, Holdings, Inc. Inc. 45.8 SEI Investments Co. 7.0 SimCorp A/S 23.4 Fidessa group plc 44.4 SimCorp A/S 6.3 Fidessa group plc 22.3 Broadridge Financial Solutions, Inc. 34.2 SS&C Technologies Fidessa group plc 4.2 19.1 Holdings, Inc. SimCorp A/S 32.8 IRESS Limited 4.2 SEI Investments Co. 18.4 SS&C Technologies 31.2 Financial Engines, Holdings, Inc. IRESS Limited Inc. 3.9 18.3 SEI Investments Co. 29.2 Computershare Broadridge Financial Limited 3.8 Solutions, Inc. 16.8 Financial Engines, IRESS Limited 27.4 Envestnet, Inc. 3.8 Inc. 16.8 Computershare Broadridge Financial Computershare Limited 25.7 Solutions, Inc. 3.1 Limited 15.4 DST Systems, Inc. 2.5 DST Systems, Inc. 11.2 DST Systems, Inc. 11.6 Median 4.0 Median 18.3 Median 31.2 0x 2x 4x 6x 8x 10x 0x 10x 20x 30x 40x 0x 10x 20x 30x 40x 50x 9 All Rights Reserved to 7 Mile Advisors VALUATION Historical Valuation Multiples versus Gross Profit Historical Valuation Multiples versus Revenue Growth Rate 40x 75.8% 80% 40x 42.5% 45% 35x 70% 35x 40% 61.4% 58.3% 35% 30x 55.7% 60% 30x 30% 25x 50% 25x 24.4% 47.1% 25% 20x 40% 20x 18.3% 20% 16.0% 15x 30% 15x 32.5% 13.1% 15% 29.3% 10x 25.9% 20% 10x 13.3% 10% 19.7% 20.4% 9.8% 10.3% 8.9% 5x 10% 5x 6.6% 5% 11x 15x 17x 17x 18x 18x 19x 22x 23x 34x 11x 15x 17x 17x 18x 18x 19x 22x 23x 34x EBITDA(x) LTM GP% LTM EBITDA(x) 0x 0% 0x 0% RGR% LTM EBITDA(x) LTM GP% EBITDA(x) LTM RGR% 10 All Rights Reserved to 7 Mile Advisors RECENT TRANSACTIONS Total Transaction Target TEV / TEV / Date Target Buyer / Investor Value Revenue Revenue EBITDA 29Mar18 D3 Technology Inc.
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