Financial Technology Sector Summary July 30, 2014 Financial Technology Sector Summary Table of Contents I. GCA Savvian Overview II. Market Summary III. Payments / Banking IV. Securities / Capital Markets / Data & Analytics V. Healthcare / Insurance I. GCA Savvian Overview GCA Savvian Overview Highlights Firm Statistics GCA Savvian Focus . Over 225 professionals today Mergers & Acquisitions Private Capital Markets . Full spectrum of buy-side, sell- . Agented private capital raiser . Headquarters in San Francisco and Tokyo; offices in New side and strategic advisory York, London, Shanghai, Mumbai, and Osaka . Equity and debt capital markets . Public and private company advisory services experience . Provides mergers and acquisitions advisory services, private . Core competency, with important capital & capital markets advisory services, and principal . Strategic early-stage growth relationships among the venture investing companies through industry capital and private equity defining, multi-billion dollar community transactions . Over 500 transactions completed . Publicly traded on the Tokyo Stock Exchange (2174) Senior level attention and focus, Relationships and market extensive transaction intelligence; a highly experienced team in experience and deep domain insight the industry Global Advisory Firm Market Positioning Bulge Bracket Growth Sector Focus Transaction Expertise . Senior Team with . Growth Company Focus Unparalleled Transaction . Sector Expertise / Domain Experience Knowledge . Highest Quality Client . Private Capital Access Service . Late Stage Private through . Broad Network Including Public Company Orientation Global 1000 Relationships . M&A Advisory and Capital Raising Expertise 3 GCA Savvian Overview Financial Technology Landscape . GCA Savvian divides Financial Technology into Financial Technology three broad categories − Payments & Banking − Securities & Capital Markets − Healthcare & Payments & Banking Securities & Capital Markets Healthcare & Insurance Insurance Analytics Crowd Funding BPO / IT Services ATMs Digital Media Brokerage Bill Payment Collections e-Brokerage Claims Processing Core Processing Exchanges Collections Financial Outsourcing Hedge Fund Administration CRM Information Processing Index Businesses Document Management Issuer Processing Mutual Fund Processing eCommerce Marketing / Offers Merchant Acquiring Personal Financial Mgmt. Information and Analytics Mobile Risk & Analytics Payments Money Transfer Securities Brokerage Risk Management Online Lending Software / SaaS Software / SaaS P2P Lending Prepaid Trading Platforms Title / Appraisal 4 GCA Savvian Overview Financial Technology Team San Francisco New York th 150 California St., Ste. 2300 1330 Ave. of the Americas, 28 Fl. San Francisco, CA 94111 New York, NY 10019 United States United States Phone: (415) 318-3600 Phone: (212) 999-7090 Sean Minnihan Paul DiNardo Steve Fletcher Derek Bell Managing Director Advisory Director Managing Director Director Financial Technology Software Digital Media Business Services Phone: (212) 999-7077 Phone: (415) 318-3665 Phone: (415) 318-3661 Phone: (212) 999-7089 Mobile: (917) 364-6230 Mobile: (650) 483-7246 Mobile: (415) 518-6725 Mobile: (914) 953-0689 [email protected] [email protected] [email protected] [email protected] Dick Filippini Zeke Navar Rob Freiman Alexander Berry Director Director Vice President Analyst Mobile Healthcare IT Financial Technology Phone: (415) 318-3688 Phone: (415) 783-3276 Phone: (212) 999-7075 Phone: (212) 999-7079 Mobile: (415) 297-3420 Mobile: (917) 229-0436 Mobile: (973) 229-0436 Mobile: (818) 851-2300 [email protected] [email protected] [email protected] [email protected] 5 II. Market Summary Market Summary Industry Stock Market Performance Last 12 Months Last 3 Months 135 115 130 110 125 120 105 115 100 110 105 95 100 90 95 90 85 7/25/13 8/25/13 9/24/13 10/24/13 11/24/13 12/24/13 1/24/14 2/24/14 3/26/14 4/25/14 5/27/14 6/26/14 4/25/14 5/4/14 5/11/14 5/18/14 5/25/14 6/1/14 6/8/14 6/15/14 6/22/14 6/29/14 7/6/14 7/13/14 7/20/14 (1) (2) (3) (4) Payments Exchanges Financial Data, Content, Information Processors / & Analytics Credit Bureaus Healthcare / Insurance (9) Technology (5) (6) Banking & Lending (7) Investment Services, (8) Trading Platforms Online Broker Dealers Technology Software, & Technology Notes: 1) Payments: ADS, AIM: PPT, AXP, BOVESPA: CIEL3, CATM, DFS, DRIV, EBAY, EEFT, ENXTPA: EDEN, FLT, GCA, GDOT, GPN, HPY, MA, MCRS MGI, ONE, OUTR, PAR, TSS, UEPS, V, VNTV, WEX, WU, XOOM, 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, RATE, TRI. 4) Information Processors / Credit Bureaus: ACXM, EFX, FICO, INTX, LSE: EXPN. 5) Trading Platforms: BGCP, GFIG, INTL, ITG, MKTX. 6) Online Broker Dealers: AMTD, ETFC, FXCM, GCAP, IBKR, SCHW. 7) Banking & Lending Technology: ACIW, ELLI, EPAY, FIS, FISV, INTU, JKHY, PFMT, QTWO, SWX: TEMN. 7 8) Investment Services, Software, & Technology: ADVS, BR, DST, ENV, FNGN, SEIC, SSNC, TIBX. 9) Healthcare / Insurance Technology: BSE:532254, ATHN, EBIX, CRD.B, GWRE, IMS, SLH, TSXV:SY, VRSK. Market Summary Indexed Price Performance by Sector Last 3 Months 1 Year 3 Years Banking & Lending 8.9% 29.3% 80.4% Technology Financial, Data, Content, 8.8% 19.4% 43.6% & Analytics Exchanges 8.5% 12.8% 15.1% Investment Services, 8.1% 13.6% 49.8% Software, & Technology Payments 6.9% 18.1% 98.1% Healthcare / Insurance 6.4% 70.9% Technology 13.8% Trading Platforms 1.5% 6.6% 31.2% Online Broker Dealers (1.2%) 21.6% 63.9% Information Processors / (3.8%) 53.2% Credit Bureaus 1.0% (10.0%) 0.0% 10.0% 0.0% 10.0% 20.0% 30.0% 40.0% 0.0% 20.0% 40.0% 60.0% 80.0% 100.0% 120.0% Notes: 8 Numbers represent medians of sub-sectors. Details available in later pages. Market Summary Long-Term EPS Growth and LTM EBITDA Margins Long-Term EPS Growth LTM EBITDA Margins (1) Trading Platforms 20.4% Exchanges 57.4% Online Broker Dealers 17.6% Financial Data, Content, & Analytics 36.7% Payments 14.0% Banking and Lending Technology 26.5% Banking and Lending Technology 13.5% Investment Services, Software, & Technology 13.0% Information Processors / Credit Bureaus 26.0% Healthcare / Insurance Technology 12.9% Healthcare / Insurance Technology 22.8% Financial Data, Content, & Analytics 12.3% Investment Services, Software, & Technology 20.6% Exchanges 11.6% Payments 20.5% Information Processors / Credit Bureaus 10.4% 0% 5% 10% 15% 20% 25% 0% 10% 20% 30% 40% 50% 60% 70% Notes: 9 Numbers represent medians of sub-sectors. Details available in later pages. (1) Online Broker Dealers and Trading Platforms not material. Market Summary Price / Earnings Multiples and PEG Ratios 2014E Price / Earnings Multiples 2014E PE / Growth (“PEG” Ratio) Financial Data, Content, & Analytics 22.9x Exchanges 2.0 Banking and Lending Technology 21.8x Information Processors / Credit Bureaus 1.7 Exchanges 21.7x Healthcare / Insurance Technology 1.6 Online Broker Dealers 21.3x Financial Data, Content, & Analytics 1.6 Investment Services, Software, & Technology 20.9x Investment Services, Software, & Technology 1.5 Information Processors / Credit Bureaus 19.2x Banking and Lending Technology 1.3 Healthcare / Insurance Technology 19.2x Payments 1.2 Payments 17.7x Online Broker Dealers 1.1 Trading Platforms 15.6x Trading Platforms 0.9 0.0x 5.0x 10.0x 15.0x 20.0x 25.0x 0.0 0.5 1.0 1.5 2.0 2.5 Notes: 10 Numbers represent medians of sub-sectors. Details available in later pages. Market Summary LTM Price Performance and 2014 P/E – Payments / Banking ($MM) ($MM) LTM Price LTM Price Networks Market Cap. Performance P/E 2014 Prepaid Market Cap. Performance P/E 2014 Visa Inc. $133,832 10% 23.9x Blackhawk Network Holdings, Inc. $1,445 18% 22.0x American Express Company 97,318 21% 16.8 Green Dot Corporation 787 (19%) 13.3 MasterCard Incorporated 88,506 26% 25.1 Net 1 Ueps Technologies Inc. 515 48% 6.8 eBay Inc. 65,474 2% 17.7 Higher One Holdings, Inc. 205 (60%) 6.6 Discover Financial Services 29,114 24% 11.7 Sector Average $738 (3%) 12.2x Sector Average $82,849 17% 19.1x LTM Price LTM Price ATM / Kiosks Market Cap. Performance P/E 2014 Merchant Processing Market Cap. Performance P/E 2014 Outerwall Inc. $1,094 (18%) 7.9x Cielo SA $31,578 64% 21.7x Cardtronics Inc. 1,619 22% 16.0 Total System Services, Inc. 6,087 19% 16.9 Global Cash Access Holdings, Inc. 581 23% 9.9 Wirecard AG 4,913 38% 31.0 Sector Average $1,098 9% 11.3x Global Payments Inc. 5,154 (30%) 16.5 Vantiv, Inc. 4,966 (15%) 18.2 LTM Price EVERTEC, Inc. 1,754 84% 13.3 POS Hardware / Technology Market Cap. Performance P/E 2014 Heartland Payment Systems, Inc. 1,638 (64%) 19.4 Optimal Payments Plc 1,257 178% 23.4 NCR Corp. $5,334 (10%) 10.6x Digital River Inc. 463 (25%) 27.3 Ingenico SA 5,234 35% 23.4 Planet Payment, Inc. 135 (4%) 30.8 MICROS Systems, Inc. 5,060 43% 24.4 JetPay Corporation 25 (32%) NA VeriFone Systems, Inc. 3,940 97% 22.3 Sector Average $5,270 19% 21.8x PAR Technology Corporation 62 (8%) NA Sector Average $3,926 31% 20.2x LTM Price Money Transfer Market Cap. Performance P/E 2014 LTM Price Banking and Lending Technology Market Cap. Performance P/E 2014 The Western Union Company $9,442 2% 12.0x Euronet Worldwide Inc. 2,358 25% 19.1 Intuit Inc. $23,460 31% 21.6x Xoom Corporation 823 (30%) 94.6 Fidelity National Information Services, Inc. 16,286 27% 18.2 Moneygram International Inc. 794 NA 10.8 Fiserv, Inc. 15,619 35% 18.7 Sector Average $3,354 (1%) 34.1x Jack Henry & Associates Inc.