Sectorwatch: Industrial Robotics May 2018 Industrial Robotics May 2018 Sector Dashboard [4]

Home , Denso, FANUC, Mobile industrial robots

Public Basket Performance [5]

Operational Metrics [7]

Valuation Comparison [10]

Recent Deals [13]

Appendix [14]

7MA provides Investment Banking & Advisory Services to the 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 help our clients sell their companies, raise capital, grow through acquisitions, and evaluate new markets. We publish our sectorwatch, a review of M&A and operational trends in the industries we focus.

Dashboard Valuation Comparison • Summary metrics on the sector • Graphical, detailed comparison of valuation • Commentary on market momentum by multiples for the public basket comparing the most recent 12-month performance against the last 3-year averages.

Public Basket Performance Recent Deals • Summary valuation and operating metrics for • The most recently announced deals in the a basket of comparable public companies sector

3 Dashboard

Operating Metrics Revenue Growth Momentum 1 - year revenue growth compared to revenue growth Median LTM GP Margin % 35.4% 0.07 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 % 13.4%

Pricing / Gross Margin Momentum Median LTM Rev. Growth % 7.9% 1 - year gross profit % compared to gross profit % 0.9% average for last 3 years 0% 10% 20% 30% 40% Current gross profit margin exceeds the average of the last 3 years gross profit margin by this amount, indicating supplier pricing power Valuation

Profitability Momentum Median Price / LTM Earnings 22.8x 1 - year EBITDA % compared to EBITDA % average for 0.4% last 3 years Median TEV / LTM EBIT 13.2x Current EBITDA margin exceeds the average of the last 3 years EBITDA margin by this amount, a condition that may attract new entrants Median TEV / LTM EBITDA 9.1x

Median TEV / LTM Revenue 1.5x

0x 5x 10x 15x 20x 25x

4 Public Basket

Rev TEV / LTM Rev Growth EBITDA TEV / EBITDA Rev / Company TEV $m $m YoY GP % % Rev X X # FTEs FTE $k

Nachi-Fujikoshi Corp. 1,966 2,279 14% 23% 13% 0.9 6.8 7,202 316 Teradyne, Inc. 5,908 2,167 22% 57% 30% 2.7 9.1 4,500 482 Seiko Epson Corporation 5,925 10,377 8% 36% 11% 0.6 5.4 76,391 136 OMRON Corporation 10,582 8,097 8% 42% 13% 1.3 9.9 - NA YASKAWA Electric Corporation 10,856 4,585 0% 34% 15% 2.4 15.5 - NA Rockwell Automation Inc. 21,348 6,505 7% 42% 20% 3.3 16.4 22,000 296 Mitsubishi Electric Corporation 30,369 41,723 5% 32% 12% 0.7 6.2 - NA Fanuc Corporation 35,276 6,841 35% 45% 36% 5.3 13.8 - NA DENSO Corporation 38,737 48,098 13% 17% 13% 0.8 6.2 - NA ABB Ltd 53,813 35,085 4% 30% 13% 1.6 12.5 134,800 260 Average 21,478 16,576 12% 36% 18% 2.0 10.2 24,489 298 Median 16,102 7,469 8% 35% 13% 1.5 9.5 2,250 296 share price as of 08May18

5 Public Basket Valuation Trends

12x Public EBITDA Multiples over Time

10x 12x 10x 8x 9.3x 6x 4x 8x 2x

Feb-14 Feb-15 Feb-16 Feb-17 Feb-18

Aug-13 Aug-14 Aug-15 Aug-16 Aug-17

Nov-13 Nov-14 Nov-15 Nov-16 Nov-17

May-15 May-16 May-17 May-18 6x May-14 TEV/EBITDA - Median TEV/EBITDA - Average

4x Public Revenue Multiples over Time 2.0x 1.5x 2x 1.2x 1.0x 0.5x 0.0x

Feb-14 Feb-15 Feb-16 Feb-17 Feb-18

Aug-13 Aug-14 Aug-15 Aug-16 Aug-17

Nov-13 Nov-14 Nov-15 Nov-16 Nov-17

May-14 May-15 May-16 May-17 May-18

Feb-14 Feb-15 Feb-16 Feb-17 Feb-18

Aug-13 Aug-14 Aug-15 Aug-16 Aug-17

Nov-13 Nov-14 Nov-15 Nov-16 Nov-17

May-16 May-14 May-15 May-17 May-18 TEV/Revenue - Median TEV/Revenue - Average TEV/EBITDA - Median TEV/Revenue - Median TEV/EBITDA - Average TEV/Revenue - Average

6 Operational Metrics

LTM Gross Profit Margin % LTM EBITDA %

Teradyne, Inc. 56.7% Fanuc Corporation 36.2%

Fanuc Corporation 45.2% Teradyne, Inc. 29.8%

Rockwell Automation Rockwell Automation Inc. 41.9% Inc. 20.0%

YASKAWA Electric OMRON Corporation 41.6% Corporation 15.2%

Seiko Epson Corporation 36.4% OMRON Corporation 13.4%

YASKAWA Electric Corporation 34.4% DENSO Corporation 13.3%

Mitsubishi Electric Corporation 31.6% ABB Ltd 13.1%

ABB Ltd 30.4% Nachi-Fujikoshi Corp. 12.9%

Mitsubishi Electric Nachi-Fujikoshi Corp. 23.1% Corporation 11.6%

DENSO Corporation 16.7% Seiko Epson Corporation 11.0%

Median 35.4% Median 13.4%

- 20% 40% 60% 80% - 10% 20% 30% 40%

7 Operational Metrics

LTM Revenue per LTM Revenue Growth % Full Time Employee x 000’s

Fanuc Corporation 35.3% Teradyne, Inc. $482 Teradyne, Inc. 21.8%

Nachi-Fujikoshi Corp. 13.6% Nachi-Fujikoshi Corp. $316

DENSO Corporation 12.8%

Rockwell Automation Inc. $296 OMRON Corporation 8.3%

Seiko Epson Corporation 7.5% ABB Ltd $260 Rockwell Automation Inc. 7.4%

Mitsubishi Electric Corporation 4.5% Seiko Epson Corporation $136

ABB Ltd 3.9%

Median $296 Median 7.5%

- 10% 20% 30% 40% $- $150 $300 $450 $600

8 Operational Metrics

Average Days Accounts Receivable Turnover Sales Outstanding

Seiko Epson Corporation 6.87 ABB Ltd 95.82

Mitsubishi Electric Teradyne, Inc. 5.95 Corporation 87.51

Rockwell Automation Nachi-Fujikoshi Corp. Inc. 5.79 76.80

DENSO Corporation 5.46 Fanuc Corporation 73.73

OMRON Corporation 5.05 OMRON Corporation 72.33

Fanuc Corporation 4.95 DENSO Corporation 66.81

Rockwell Automation Nachi-Fujikoshi Corp. 4.75 Inc. 63.01

Mitsubishi Electric Teradyne, Inc. Corporation 4.17 61.22

ABB Ltd 3.81 Seiko Epson Corporation 53.15

Median 5.00 Median 69.57

0x 2x 4x 6x 8x 0x 30x 60x 90x 120x

9 Valuation

TEV / LTM Revenue TEV / LTM EBITDA

Rockwell Automation Fanuc Corporation 5.3 Inc. 16.4

Rockwell Automation YASKAWA Electric Inc. 3.3 Corporation 15.5

Teradyne, Inc. 2.7 Fanuc Corporation 13.8

YASKAWA Electric ABB Ltd Corporation 2.4 12.5

ABB Ltd 1.6 OMRON Corporation 9.9

OMRON Corporation 1.3 Teradyne, Inc. 9.1

Nachi-Fujikoshi Corp. 0.9 Nachi-Fujikoshi Corp. 6.8

Mitsubishi Electric DENSO Corporation 0.8 Corporation 6.2

Mitsubishi Electric DENSO Corporation Corporation 0.7 6.2

Seiko Epson Corporation 0.6 Seiko Epson Corporation 5.4

Median 1.5 Median 9.1

0x 1x 2x 3x 4x 5x 6x 0x 5x 10x 15x 20x

10 Valuation

TEV / LTM EBIT Price / LTM Earnings

Rockwell Automation YASKAWA Electric 54.4 Corporation 19.3 Inc.

Rockwell Automation Teradyne, Inc. 28.0 Inc. 18.7 YASKAWA Electric ABB Ltd 16.2 Corporation 27.7

Fanuc Corporation 15.7 ABB Ltd 26.0

OMRON Corporation 13.2 Fanuc Corporation 25.2

Nachi-Fujikoshi Corp. 13.2 OMRON Corporation 20.3

Teradyne, Inc. 10.9 Seiko Epson Corporation 17.0

DENSO Corporation 10.1 Nachi-Fujikoshi Corp. 15.4

Mitsubishi Electric DENSO Corporation 13.6 Corporation 9.2 Mitsubishi Electric Seiko Epson Corporation 9.1 Corporation 12.9

Median 13.2 Median 22.8

0x 5x 10x 15x 20x 25x 0x 10x 20x 30x 40x 50x 60x

11 Valuation

Historical Valuation Multiples Historical Valuation Multiples versus Gross Profit versus Revenue Growth Rate

18x 56.7% 60% 18x 40% 35.3% 16x 16x 35% 50% 45.2% 14x 41.6% 14x 41.9% 30% 12x 36.4% 40% 12x 25% 31.6% 21.8% 10x 10x 34.4% 30% 3.9% 20% 8x 30.4% 8x 13.6% 12.8% 15% 6x 23.1% 20% 6x 4.5% 10% 4x 16.7% 4x 7.4% 10% 7.5% - 2x 2x 8.3% 5%

5x 6x 6x 7x 9x 10x 13x 14x 15x 16x 5x 6x 6x 7x 9x 10x 13x 14x 15x 16x

EBITDA(x) EBITDA(x) LTM GP% LTM

0x 0% 0x 0% RGR% LTM

EBITDA(x) LTM GP% EBITDA(x) LTM RGR%

12 Recent Transactions Total Transaction Target TEV / TEV / Date Target Buyer / Investor Value Revenue Revenue EBITDA

3May18 TAL Manufacturing Solutions Limited Tata Advanced Systems Limited - - - - 2May18 Soft Robotics Inc. Scale Venture Partners; ABB Technology Ventures Ltd.; Haiyin Capital; 20.00 - - - Yamaha Motor Ventures & Laboratory Silicon Valley, Inc.; Taylor Ventures; Hyperplane Venture Capital; Calibrate Ventures, LP; Calibrate Ventures Management, LLC; Honeywell Venture Capital LLC; Material Impact Management, LLC; Tekfen Ventures 25Apr18 Mobile Industrial Robots ApS Teradyne, Inc. 272.00 12.00 22.7x - 22Apr18 ELXSI Corporation SPX Corporation 189.00 90.00 2.1x - 18Apr18 LPK Co.,Ltd People & Telecommunication Inc. 12.23 - - - 8Apr18 Beijing Aresbots Technology Co., Ltd. Megvii Technology Limited - - - - 13Mar18 Robotic VISION Technologies, LLC - 10.50 - - - 7Mar18 Jaka Robot F&G Venture 9.50 - - - 27Feb18 Planys Technologies Pvt. Ltd. Keiretsu Forum; Oil and Natural Gas Corp. Ltd., Investment Arm 2.15 - - - 27Feb18 Magazino GmbH New-Cell, Inc.; Körber AG; Zalando SE; FIEGE Logistik Stiftung & Co. 24.61 - - - KG 22Feb18 Flexicell, Inc. Pearson Packaging Systems, Inc. - - - - 19Feb18 Isybot SAS Calao Finance 1.24 - - - 9Feb18 Resort Savers, Inc. Admall Sdn Bhd - 61.10 - - 6Feb18 Aectual B.V. DOEN Participaties BV 2.23 - - - 6Feb18 Peak Nano Systems L3 Technologies, Inc. - - - - 30Jan18 Invert Robotics Limited New Zealand Venture Investment Fund Limited; Powerhouse Ventures 6.40 - - - Limited 26Jan18 MIP robotics SAS - 0.62 - - - 18Jan18 Shanghai KMT Automation Control Technology Comtech Industrial (hong Kong) Limited - - - - Ltd. Co. 29Dec17 LPK Co.,Ltd Exio Vista Investment Co., Ltd. (nka:Arstartech.Co.Ltd) 14.69 - - - 13Dec17 Coretec SARL Audacia SAS 2.35 - - - 12Dec17 Ecoppia Ltd. Harel Insurance Investments & Financial Services Ltd; GlenRock Israel, 13.00 - - - Ltd.; Gandyr Investments Ltd.; Swarth Investments L.L.C. 1Nov17 PaR Systems, Inc. - - - - - 1Nov17 SAS Automation, LLC Piab AB - - - - 26Oct17 Shenzhen Tongchuan Technology Company Jiangmen Idear-Hanyu Electrical Joint-Stock Co., Ltd. 7.53 3.11 - - Co.,Ltd. 19Oct17 Square Robot, Inc. - - - - - 17Oct17 Cognitive Robotics LLC - 3.22 - - - 28Sep17 Kinova Inc. BDC Venture Capital; Caisse de dépôt et placement du Québec; Hyield 20.06 - - - Venture Capital Co., Ltd.; KTB Network Co., Ltd.; Fonds Manufacturier Québécois II s.e.c. 21Sep17 ALCI SAS VINCI Energies S.A., Investment Arm; Inerbiz - 0.64 - - 11Sep17 RobotSol - Engenharia Industrial, Lda Pathena SGPS; Pathena Fund - - - - 8Sep17 DST Robot Co., Ltd. JH Holdings Co., Ltd. 1.77 67.07 - - 31Aug17 Robotic Drilling Systems AS Nabors Industries Ltd. - - - -

13 Industrial Robotics May 2018 APPENDIX:

Public Basket

Constituents

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 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. 14 Revenue Multiples - Nachi-Fujikoshi Corp. 2.0x Public Basket 1.5x 1.0x 0.5x Nachi-Fujikoshi Corp. 0.0x Nachi-Fujikoshi Corp. operates as a machinery manufacturer in Japan, Asia, Oceania, the United States, and Europe. It provides cutting tools, including drills, taps, end mills, gear cutters, TEV/Revenue Average broaches, and cut-off and re-grinding tools; and machine tools, such as broaching machines, precision roll forming machines, EBITDA Multiples - Nachi-Fujikoshi Corp. machining cells, power finishers, and gear shape machining 15x centers. The company also offers robots for spot and arc 12x welding, handling, palletizing, heavy duty, cleanroom, and 9x option, as well as controllers and support services; and radial 6x ball, radial roller, thrust ball, and thrust roller bearings, as well as 3x bearing units and plummer block housings. In addition, it 0x provides hydraulic equipment comprising valves, pumps, motors, units, and rotary center joints; special steels consisting of high speed tool and alloy tool steels, bearing and martensitic stainless TEV/EBITDA Average steels, cermet and micron hard products, and FM alloy products; and industrial furnaces, including vacuum carburizing furnace, P/E Multiples - Nachi-Fujikoshi Corp. vacuum degreasing machine and system, and gas-quenching 50x vacuum furnace thermo systems, as well as coating equipment 40x and services. Further, the company offers forming tools, cutting 30x saws, machining systems, and automotive hydraulics. Nachi- 20x Fujikoshi Corp. was founded in 1928 and is headquartered in 10x Toyama, Japan. 0x

P/E Average

15 Revenue Multiples - Teradyne, Inc. 5x Public Basket 4x 3x 2x 1x Teradyne, Inc. 0x Teradyne, Inc. designs, develops, manufactures, sells, and supports automatic test equipment worldwide. Its Semiconductor TEV/Revenue Average Test segment offers semiconductor test products and services for wafer level and device package testing in automotive, industrial, communications, consumer, computer and electronic EBITDA Multiples - Teradyne, Inc. 20x game, and other applications. This segment offers FLEX test platform systems; J750 test system to address the highest 15x volume semiconductor devices; Magnum platform that tests 10x memory devices, such as flash memory and DRAM; and ETS 5x platform for use by semiconductor manufacturers, and assembly and test subcontractors in the analog/mixed signal markets. This 0x segment serves integrated device manufacturers that integrate the fabrication of silicon wafers into their business; fabless companies that outsource the manufacturing of silicon wafers; TEV/EBITDA Average foundries; and outsourced semiconductor assembly and test providers. The company’s System Test segment offers P/E Multiples - Teradyne, Inc. defense/aerospace test instrumentation and systems; storage 60x test systems; and circuit-board test and inspection systems. The 45x company was founded in 1960 and is headquartered in North Reading, Massachusetts. 30x 15x 0x Date Key Development Headline 4/24/18 Teradyne, Inc. (NYSE:TER) acquired Mobile Industrial Robots ApS for approximately $270 million. P/E Average

16 Revenue Multiples - Seiko Epson 1.5x Corporation Public Basket 1.2x 0.9x 0.6x 0.3x Seiko Epson Corporation 0.0x Seiko Epson Corporation, together with its subsidiaries, develops, manufactures, sells, and provides services for TEV/Revenue Average products in the printing solutions, visual communications, wearable and industrial products, and other businesses in Japan, the United States, China, and internationally. Its Printing EBITDA Multiples - Seiko Epson 15x Solutions segment provides inkjet printers, serial impact dot Corporation 12x matrix printers, page printers, color image scanners, large-format inkjet printers, industrial inkjet printing systems, printers for use 9x in POS systems, label printers and related consumables, office 6x papermaking systems, personal computers, and others. The 3x company’s Visual Communications segment develops, 0x manufactures, and sells 3LCD projectors for business, education, and the home markets; high-temperature polysilicon TFT LCD panels for 3LCD projectors; and smart eyewear. Its TEV/EBITDA Average Wearable & Industrial Products segment offers watches and watch movements; sensing systems and equipment; built-in P/E Multiples - Seiko Epson Corporation sensors used in the personal health and sports fields, etc.; 40x industrial robots and other production systems; and electronic 30x devices. This segment also designs, manufactures, and sells electronic devices, such as crystal units, crystal oscillators, and 20x quartz sensors for consumer, automotive, and industrial 10x equipment applications; and CMOS LSIs and other chips 0x primarily for consumer electronics and automotive applications, as well as provides metal powders and surface finishing services. Seiko Epson Corporation was founded in 1942 and is P/E Average headquartered in Suwa, Japan.

17 Revenue Multiples - OMRON Corporation 2.0x Public Basket 1.5x 1.0x 0.5x OMRON Corporation 0.0x OMRON Corporation manufactures and sells sensing and control products worldwide. The company operates through TEV/Revenue Average Industrial Automation Business; Electronic and Mechanical Components Business; Automotive Electronic Components Business; Social Systems, Solutions, and Service Business; EBITDA Multiples - OMRON Corporation 15x Healthcare Business; and Other Business segments. The 12x Industrial Automation Business segment offers control equipment for factory automation, including vision and fiber sensors; 9x programmable, motion, and safety controllers; inverters; 6x servomotors and drivers; and parallel robots and safety light 3x curtains. The Electronic and Mechanical Components Business 0x segment provides relays, switches, connectors, sensing systems, and other devices used in consumer electronics and other applications. OMRON Corporation was founded in 1933 TEV/EBITDA Average and is headquartered in Kyoto, Japan.

40x P/E Multiples - OMRON Corporation 30x Date Key Development Headline 10/1/17 OMRON Corporation (TSE:6645) acquired Microscan Systems, 20x Inc. from Spectris plc (LSE:SXS). 10x 8/29/17 OMRON Corporation (TSE:6645) signed an agreement to acquire Microscan Systems, Inc. from Spectris plc (LSE:SXS) for 0x approximately $160 million. 6/1/17 OMRON Corporation and RIKEN Research Institute Agree to Set Up RIKEN BSI-Omron Collaboration Center P/E Average

18 Revenue Multiples - YASKAWA Electric 5x Corporation Public Basket 4x 3x 2x 1x YASKAWA Electric Corporation 0x YASKAWA Electric Corporation engages in the motion control, robotics, system engineering, and other businesses worldwide. It TEV/Revenue Average manufactures and sells various AC drives, including general purpose AC drives, medium-voltage AC drives, system-use AC drives, and power regenerative units for use in cranes, fans, EBITDA Multiples - YASKAWA Electric 30x pumps, machine tools, conveyers, automated ware houses, and Corporation 24x metal working machinery; and rotary servo motors, direct drive servo motors, linear servo motors, machine controllers, and 18x machine vision systems that are used in chip mounters, robots, 12x and metal working machinery. The company also offers arc and 6x spot welding, handling/assembling, biomedical, palletizing, press 0x handling, sealing/cutting/laser machining, deburring, painting, glass substrates transfer, and semiconductor wafer transfer robots for use in semiconductor/liquid crystal manufacturing, arc TEV/EBITDA Average welding, spot welding, palletizing, painting, and handling and assembly applications. YASKAWA Electric Corporation was P/E Multiples - YASKAWA Electric 80x founded in 1915 and is headquartered in Kitakyushu, Japan. Corporation 60x 40x 20x Date Key Development Headline 0x 4/26/18 YASKAWA Electric Corporation (TSE:6506) acquired an unknown unknown stake in Robotic Biology Institute Inc from Japan Japan Science And Technology Agency. P/E Average

19 Revenue Multiples - Rockwell Automation 6.0x Inc. Public Basket 4.5x 3.0x 1.5x Rockwell Automation Inc. 0.0x Rockwell Automation Inc. provides industrial automation and information solutions worldwide. The Architecture & Software TEV/Revenue Average segment provides control platforms, including controllers, electronic operator interface devices, electronic input/output EBITDA Multiples - Rockwell Automation devices, communication and networking products, and industrial 30x computers that perform multiple control disciplines and Inc. 24x monitoring of applications, such as discrete, batch and 18x continuous process, drives control, motion control, and machine safety control. This segment also offers configuration and 12x visualization software, which is used to operate and supervise 6x control platforms, process control software, and manufacturing 0x execution systems and information solution software to enhance productivity and meet regulatory requirements; and other products comprising sensors, machine safety components, and TEV/EBITDA Average linear motion control products. Rockwell Automation Inc. was founded in 1903 and is headquartered in Milwaukee, Wisconsin. P/E Multiples - Rockwell Automation Inc. 80x 60x

Date Key Development Headline 40x 4/25/18 Rockwell Automation Seeks Acquisitions 20x 2/22/18 Rockwell Automation Seeks Acquisitions 11/30/17 Rockwell Automation Inc. (NYSE:ROK) acquired Odos Imaging 0x Ltd. on December 1, 2017. 11/28/17 Emerson Electric Co., Rockwell Automation Inc. - M&A Call 11/27/17 Emerson Electric Co. (NYSE:EMR) cancelled the acquisition of P/E Average Rockwell Automation, Inc. (NYSE:ROK).

20 Revenue Multiples - Mitsubishi Electric 2.0x Corporation Public Basket 1.6x 1.2x 0.8x 0.4x Mitsubishi Electric Corporation 0.0x Mitsubishi Electric Corporation develops, manufactures, distributes, and sells electrical and electronic equipment TEV/Revenue Average worldwide. The company offers turbine generators, nuclear power plant and power electronics equipment, motors, EBITDA Multiples - Mitsubishi Electric transformers, circuit breakers, gas insulated switches, switch 20x control and display devices, surveillance-system control and Corporation security systems, locomotive and rolling stock electrical 15x equipment, elevators, escalators, building security and 10x management systems, particle therapy systems, and others. 5x IMitsubishi Electric Corporation was founded in 1921 and is headquartered in Tokyo, Japan. 0x

Date Key Development Headline TEV/EBITDA Average 1/17/18 Ingersoll Rand and Mitsubishi Electric Corporation to Establish Joint Venture for Ductless and Variable Refrigerant Flow Heating and Air Conditioning Systems in the U.S. and Select Latin P/E Multiples - Mitsubishi Electric America Countries 60x Corporation 12/10/17 Adda Corporation (GTSM:3071) agreed to acquire Melco 45x Technorex Co., Ltd. for approximately ¥191 million. 12/6/17 Hitachi, Ltd. (TSE:6501) signed an agreement to acquire particle 30x therapy system business from Mitsubishi Electric Corporation 15x (TSE:6503). 11/21/17 Elevadores Otis Ltda. acquired Melco Elevadores Do Brasil SA 0x from Mitsubishi Electric Corporation (TSE:6503) and others. 8/8/17 Bosch, Geo++, Mitsubishi Electric and u-blox to Establish Joint Venture Sapcorda Services to Bring High Precision GNSS Positioning Services to Mass Markets P/E Average

21 Revenue Multiples - Fanuc Corporation 10x Public Basket 8x 6x 4x 2x Fanuc Corporation 0x Fanuc Corporation provides factory automation products in the Americas, Europe, and Asia. It offers CNC series, servo motors, lasers, robots, compact machining centers, electric injection TEV/Revenue Average molding machines, wire-cut electric discharge machines, and ultra-precision machine. The company was founded in 1972 and EBITDA Multiples - Fanuc Corporation is headquartered in Oshino, Japan. 25x 20x 15x 10x 5x 0x Date Key Development Headline 2/8/18 Fanuc Corporation (TSE:6954) acquired Life Robotics Inc. on February 9, 2018. 1/31/18 FANUC CORPORATION, Hitachi, Ltd. and Preferred Networks, TEV/EBITDA Average Inc. Announce Agreement to Establish A Joint Venture Company on April 2, 2018; Yutaka Saito to Hold Concurrent Position as CEO of the New Company P/E Multiples - Fanuc Corporation 10/24/17 Fanuc Corporation (TSE:6954) agreed to acquire remaining 45x 33.4% stake in Mold Institute Ltd. from Kuroda Precision 36x Industries Ltd. (TSE:7726), Makino Milling Machine Co., Ltd. 27x (TSE:6135) and other shareholders for approximately ¥410 million. 18x 9x 0x

P/E Average

22 Revenue Multiples - DENSO Corporation 1.5x Public Basket 1.2x 0.9x 0.6x 0.3x DENSO Corporation 0.0x DENSO Corporation supplies automotive technology, systems, and components for automakers. It develops and manufactures electronic products, semiconductor sensors, and microelectronic TEV/Revenue Average devices; and powertrain systems, such as gasoline and diesel engine control systems, fuel pumps, variable valve timing-related EBITDA Multiples - DENSO Corporation products, sensors, and oil pressure control valves. The company 12x 10x also develops and produces electrification systems, such as 8x hybrid and electric car drive systems, power supply and related 6x products, and alternators and starters; and thermal systems, 4x including air conditioning systems for cars and buses, truck 2x refrigeration units, air purifiers and related air-conditioning 0x products, radiators, and cooling systems. DENSO Corporation was founded in 1949 and is headquartered in Kariya, Japan. TEV/EBITDA Average Date Key Development Headline 3/8/18 Denso Corporation (TSE:6902) agreed to acquire an additional P/E Multiples - DENSO Corporation 4.5% stake in Renesas Electronics Corp. (TSE:6723) from 25x Innovation Network Corp of Japan. 20x 3/2/18 Toyota Motor Corporation, Aisin Seiki Co., Ltd. and Denso Corporation Concludes Memorandum of Understanding on Joint 15x Development; Elects Dr. James Kuffner as CEO of TRI-AD 10x 2/13/18 DENSO Corporation (TSE:6902) acquired unknown stake in 5x CREATIONLINE, Inc. 0x 1/14/18 DENSO Corporation (TSE:6902) entered into a capital alliance agreement to acquire 20% stake in Toshiba Information Systems (Japan) Corporation. 12/3/17 DENSO Corporation (TSE:6902) entered into a basic agreement P/E Average to acquire an additional 7.62% stake in ASMO CO., LTD.

23 Revenue Multiples - ABB Ltd 3.0x Public Basket 2.4x 1.8x 1.2x 0.6x ABB Ltd 0.0x ABB Ltd manufactures and sells electrification, robotics and motion, industrial automation, and power grid products TEV/Revenue Average worldwide. Its Electrification Products segment provides modular substation packages, distribution automation products, circuit EBITDA Multiples - ABB Ltd breakers, measuring and sensing devices, control products, 20x wiring accessories, enclosures and cabling systems, and 15x intelligent home and building solutions. This segment serves building, data center, rail, wind and solar, food and beverage, 10x marine, and oil and gas industries. The company’s Robotics and 5x Motion segment offers robotics, motors, generators, drives, wind 0x converters, components and systems for railways and related services, and digital services for applications in industries, transportation and infrastructure, and utilities. ABB Ltd was TEV/EBITDA Average founded in 1883 and is headquartered in Zurich, Switzerland.

45x P/E Multiples - ABB Ltd Date Key Development Headline 36x 3/29/18 ABB Seeks Acquisitions 3/20/18 Arundo Analytics and ABB Collaborates to Create the First Cloud- 27x Based Virtual Multiphase Flow Meters for the Offshore Oil and 18x Gas Industry 9x 3/12/18 Sonatrach Spa acquired the remaining 50% stake in Sarpi from ABB Ltd (SWX:ABBN). 0x 2/8/18 ABB Seeks Acquisitions 12/20/17 SNC-Lavalin to Form a Joint Venture with ABB 9/26/17 ABB and Northvolt Close Collaboration on Development of P/E Average Battery Solutions and R&D Activities

24 Contact Information 7MA provides Investment Banking & Advisory Services to the 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 help our clients sell their companies, raise capital, grow through acquisitions, and evaluate new markets. Securities offered through 7M Securities LLC.

Leroy Davis, Partner 704.899.5962 [email protected] Tripp Davis, Partner 704.899.5762 [email protected] Andy Johnston, Partner 704.899.5961 [email protected]

Tom Dinnegan, Managing Director 310. 426.2410 [email protected] Ben Lunka, Managing Director 704.496.2995 [email protected] Jeff Stoecklein, Managing Director 312.373.3737 [email protected] Kristina Sergueeva, Director 704.899.5149 [email protected] Neil Churman, Director 704.899.5960 x 121 [email protected] John Cooper, Director 704.973.3996 [email protected]

Tim Frye, Director 704.973.3994 [email protected] Casey Augustine, Business Development - Manager 704.973.3999 [email protected] Nicholas Prendergast, Financial Analyst 704.899.5960 [email protected] Ariail Siggins, Marketing Director 704.899.5960 x 123 [email protected]

Sydney Larese, Associate 704.899.5960 [email protected] Marty Johnson, Associate 704.899.5960 [email protected] Rory Julyan, Associate 704.899.5960 [email protected]

Chevonese Dacres, Analyst 360.499.1502 [email protected]