Financial Technology Sector Summary July 27, 2016 Financial Technology Sector Summary Financial Technology Sector Summary Table of Contents I. GCA Savvian Overview II. Market Summary III. Payments / Banking IV. Securities / Capital Markets / Data & Analytics V. Insurance / Benefits 2 Financial Technology Sector Summary I. GCA Savvian Overview 3 Financial Technology Sector Summary GCA Savvian Overview Financial Technology Team New York London Tokyo San Francisco th 48 Dover Street 11-1 Marunouchi 1-chome One Maritime Plaza, 25th Fl. 640 Fifth Avenue, 10 Fl. London W1S 4FF Chiyoda-ku, Tokyo 100-6230 San Francisco, CA 94111 New York, NY 10019 United Kingdom Japan (415) 318-3600 (212) 999-7090 +44 (0) 207 038-3200 +81 (3) 6212-7100 Sean Minnihan Scott Patrick Peter Bang Derek Bell Paul DiNardo Steve Fletcher Managing Director Managing Director Managing Director Managing Director Advisory Director Managing Director Global Head of FinTech Phone: (212) 999-7077 Phone: (212) 999-7087 Phone: (212) 999-7074 Phone: (212) 999-7089 Phone: (212) 999-7097 Phone: (415) 318-3661 Mobile: (917) 364-6230 Mobile: (917) 340-0358 Mobile: (917) 783-4057 Mobile: (914) 953-0689 Mobile: (650) 483-7246 Mobile: (415) 518-6725 [email protected] [email protected] [email protected] [email protected] [email protected] [email protected] Rob Freiman David Krueger Saif Malik Alexander Berry David Ibarra Director Vice President Vice President Associate Analyst Phone: (212) 999-7075 Phone: (212) 537-4534 Phone: +44 (0) 207 038-3216 Phone: (212) 999-7079 Phone: (212) 537-4532 Mobile: (973) 229-0436 Mobile: (616) 822-7179 Mobile: +44 (0) 778 606-8553 Mobile: (818) 851-2300 Mobile: (917) 471-0821 [email protected] [email protected] [email protected] [email protected] [email protected] 4 Financial Technology Sector Summary II. Market Summary 5 Financial Technology Sector Summary Market Summary Industry Stock Market Performance 120 Last 12 Months 190 Last 3 Years 170 110 150 100 130 90 110 80 90 70 70 60 50 7/22/15 8/21/15 9/21/15 10/21/15 11/20/15 12/21/15 1/20/16 2/19/16 3/21/16 4/20/16 5/20/16 6/20/16 7/20/16 7/22/13 10/21/13 1/20/14 4/21/14 7/21/14 10/20/14 1/19/15 4/20/15 7/20/15 10/19/15 1/18/16 4/18/16 7/18/16 (1) (2) Indexed Price Performance Payments Exchanges Sector 3 Months 1 Year 3 Years (3) (4) Information Processors / Credit Bureaus 11.3% 18.8% 38.3% Financial Data, Content, Information Processors / Banking & Lending Technology 10.6% 11.1% 72.1% & Analytics Credit Bureaus Financial, Data, Content, & Analytics 8.1% 9.3% 55.3% Healthcare / Insurance Technology 6.0% 11.3% 33.8% (6) (5) Banking & Lending Online Broker Dealers Investment Services, Software, & Technology 4.7% (1.1%) 65.4% Technology Exchanges 2.7% 1.5% 33.4% Payments 0.2% 0.0% 38.8% (7) (8) Online Broker Dealers (4.8%) (19.0%) 29.4% Investment Services, Healthcare / Insurance Software, & Technology Technology Notes: (1) Payments: ADS, AIM: PPT, AXP, BOVESPA: CIEL3, CATM, DFS, EEFT, ENXTPA: EDEN, FDC, FLT, GDOT, GPN, HPY, MA, MGI, OUTR, PYPL, PAR, SQ, TSE:3769, TSS, UEPS, V, VNTV, WEX, LSE: WPG, WU, XTRA: WDI. (2) Exchanges: ASX: ASX, ATSE: EXAE, BMV: BOLSA A, BOVESPA: BVMF3, CATS: BME, CBOE, CME, ICE, JSE: JSE, KLSE: BURSA, LSE: LSE, NDAQ, SEHK: 388, SGX: S68, TSX: X, WSE: GPW, XTRA: DB1. (3) Financial Data, Content & Analytics: DNB, ENXTPA: FIM, FDS, HHS, HIS, MCO, MHP, MORN, MSCI, MRKT, RATE, TRI. (4) Information Processors / Credit Bureaus: ACXM, EFX, FICO, INTX, LSE: EXPN. (5) Online Broker Dealers: AMTD, ETFC, FXCM, GCAP, IBKR, SCHW. (6) Banking & Lending Technology: ACIW, BKFS, ELLI, EPAY, FIS, FISV, INTU, JKHY, LC, ONDK, PFMT, QTWO, SWX: TEMN, YDLE. (7) Investment Services, Software, & Technology: ADVS, BR, DST, ENV, FNGN, SEIC, SSNC. 6 (8) Healthcare / Insurance Technology: BSE:532254, ATHN, EBIX, CRD.B, GWRE, IMS, SLH, TSXV:SY, VRSK. Financial Technology Sector Summary Market Summary EBITDA Multiples and Margins 2016E EBITDA Multiples 2016E EBITDA Margins Healthcare / Insurance Technology 16.5x Exchanges 56.2% Information Processors / Credit Bureaus 15.6x Online Broker Dealers 43.0% Financial Data, Content, & Analytics 13.9x Financial Data, Content, & Analytics 35.4% Banking and Lending Technology 13.5x Banking and Lending Technology 29.7% Investment Services, Software, & 13.4x Information Processors / Credit Bureaus 28.7% Technology Payments 12.7x Investment Services, Software, & Technology 26.4% Exchanges 12.1x Healthcare / Insurance Technology 25.4% Online Broker Dealers 10.6x Payments 25.1% 0.0x 5.0x 10.0x 15.0x 20.0x 0% 10% 20% 30% 40% 50% 60% Notes: 7 Numbers represent medians of sub-sectors. Details available in later pages. Financial Technology Sector Summary Market Summary Price / Earnings Multiples and PEG Ratios 2016E Price / Earnings Multiples 2016E PE / Growth (“PEG” Ratio) | Long-Term EPS Growth Banking and Lending Technology 29.4x Financial Data, Content, & Analytics 2.1 11.2% Information Processors / Credit Bureaus 26.0x Information Processors / Credit Bureaus 2.1 13.3% Investment Services, Software, & Technology 24.6x Healthcare / Insurance Technology 2.1 11.0% Financial Data, Content, & Analytics 22.9x Banking and Lending Technology 2.0 16.2% Exchanges 20.6x Exchanges 1.9 11.9% Healthcare / Insurance Technology 20.2x Investment Services, Software, & Technology 1.8 14.5% Online Broker Dealers 19.5x Payments 1.4 14.4% Payments 18.9x Online Broker Dealers 1.3 16.3% 0.0x 5.0x 10.0x 15.0x 20.0x 25.0x 30.0x 35.0x 0.0 0.5 1.0 1.5 2.0 2.5 Notes: 8 Numbers represent medians of sub-sectors. Details available in later pages. Financial Technology Sector Summary Market Summary LTM Price Performance and 2016 P/E – Payments / Banking ($MM) ($MM) LTM Pri ce LTM Pri ce Network s Market Cap. Performance P/E 2016 Prepai d Market Cap. Performance P/E 2016 Visa Inc. $190,578 11% 27.7x Blackhawk Network Holdings, Inc. $2,050 (19%) 14.2x MasterCard Incorporated $102,904 (2%) 26.4x Green Dot Corporation $1,197 23% 17.0x American Express Company $59,459 (17%) 11.8x Net 1 Ueps Technologies Inc. $581 (46%) 5.8x PayPal Holdings, Inc. $45,166 1% 25.0x Sector Average $1,276 (14%) 12.4x Discover Financial Services $23,032 (1%) 10.0x Sector Average $84,228 (1%) 20.2x LTM Pri ce ATM / Kiosks Market Cap. Performance P/E 2016 LTM Pri ce Cardtronics plc $1,972 25% 14.0x Merchant Processing Market Cap. Performance P/E 2016 Outerwall Inc. $809 (43%) 7.6x Cielo S.A. $25,085 (2%) 20.3x Everi Holdings Inc. $119 (74%) 3.0x Global Payments Inc. $11,983 48% 24.5x Sector Average $967 (30%) 8.2x First Data Corporation $11,135 NA 9.3x Total System Services, Inc. $10,201 25% 19.6x LTM Pri ce Vantiv, Inc. $9,291 47% 22.5x POS Hardware / Technology Market Cap. Performance P/E 2016 Worldpay Group plc $7,636 NA 26.5x Wirecard AG $5,564 5% 24.2x Ingenico Group $7,395 (2%) 23.0x Square, Inc. $3,263 NA NM NCR Corporation $3,881 (0%) 10.7x GMO Payment Gateway, Inc. $1,966 23% 78.8x VeriFone Systems, Inc. $2,106 (42%) 10.2x EVERTEC, Inc. $1,217 (14%) 9.9x PAR Technology Corporation $82 11% NA Planet Payment, Inc. $257 102% 28.9x Sector Average $3,366 (8%) 14.6x JetPay Corporation $39 (23%) NM Sector Average $7,964 29% 26.5x LTM Pri ce Banking and Lending Technology Market Cap. Performance P/E 2016 LTM Pri ce Intuit Inc. $29,185 6% 29.4x Money Transfer Market Cap. Performance P/E 2016 Fidelity National Information Services, Inc. $25,515 25% 20.5x The Western Union Company $9,950 7% 12.4x Fiserv, Inc. $24,563 27% 25.0x Euronet Worldwide, Inc. $3,774 10% 18.9x Jack Henry & Associates Inc. $6,949 27% 29.6x Moneygram International Inc. $405 (9%) 8.5x Temenos Group AG $3,775 62% 28.5x Sector Average $4,710 3% 13.3x Ellie Mae, Inc. $2,936 31% 50.6x DH Corporation $2,742 (19%) 14.5x Black Knight Financial Services, Inc. $2,704 30% 34.1x LTM Pri ce ACI Worldwide, Inc. $2,251 (18%) 36.4x Closed Loop Market Cap. Performance P/E 2016 LendingClub Corporation $1,683 (70%) 37.6x FleetCor Technologies, Inc. $14,049 0% 22.8x Q2 Holdings, Inc. $1,111 (3%) NM Alliance Data Systems Corporation $13,620 (19%) 13.7x Bottomline Technologies (de), Inc. $875 (22%) 16.3x Edenred SA $5,173 (14%) 23.1x On Deck Capital, Inc. $369 (60%) NM WEX Inc. $3,699 (11%) 22.1x Performant Financial Corporation $108 (30%) NM Sector Average $9,135 (11%) 20.4x Sector Average $7,483 (1%) 29.3x LTM Pri ce Information Processors / Credit Bureaus Market Cap. Performance P/E 2016 0 Experian plc $18,284 25% 21.5x Equifax Inc. $16,160 36% 26.0x Fair Isaac Corporation $3,709 29% 25.9x Acxiom Corporation $1,792 29% 40.4x Sector Average $9,986 29% 28.5x Notes: 9 Source: CapitalIQ and Wall Street Research. Market data as of July 22, 2016. Financial Technology Sector Summary Market Summary LTM Price Performance and 2016 P/E – Securities / Cap. Mkts. / Data & Analytics ($MM) ($MM) LTM Pri ce Investment Services, Software, & LTM Pri ce Exchanges - Americas Market Cap. Performance P/E 2016 Technol ogy Market Cap. Performance P/E 2016 0 CME Group Inc.