Financial Technology Sector Summary March 9, 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. Healthcare / Insurance 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 150 California St., Ste. 2300 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 Peter Bang Derek Bell Paul DiNardo Steve Fletcher Managing Director Managing Director Managing Director Advisory Director Managing Director Phone: (212) 999-7077 Phone: (212) 999-7074 Phone: (212) 999-7089 Phone: (212) 999-7097 Phone: (415) 318-3661 Mobile: (917) 364-6230 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] Rob Freiman Kenji Kimura David Krueger Saif Malik Alexander Berry David Ibarra Director Director Vice President Vice President Analyst Analyst Phone: (212) 999-7075 Phone: +81 (3) 6212-7186 Phone: (212) 537-4534 Phone: +44 (0) 207 038-3216 Phone: (212) 999-7079 Phone: (212) 537-4532 Mobile: (973) 229-0436 Mobile: +81 (80) 9022-1567 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] [email protected] 4 Financial Technology Sector Summary II. Market Summary 5 Financial Technology Sector Summary Market Summary Industry Stock Market Performance Last 12 Months Last 3 Months 120 105 115 100 110 95 105 90 100 85 95 80 90 75 85 70 80 75 65 3/4/15 4/3/15 5/4/15 6/3/15 7/3/15 8/3/15 9/2/15 10/2/15 11/2/15 12/2/15 1/1/16 2/1/16 3/2/16 12/4/15 12/13/15 12/21/15 12/29/15 1/6/16 1/14/16 1/22/16 1/31/16 2/8/16 2/16/16 2/24/16 3/3/16 (3) (4) (1) (2) Financial Data, Content, Information Processors / Payments Exchanges & Analytics Credit Bureaus (5) Banking & Lending (6) Investment Services, (7) Healthcare / Insurance (8) Online Broker Dealers Technology Software, & Technology Technology Notes: (1) Payments: ADS, AIM: PPT, AXP, BOVESPA: CIEL3, CATM, DFS, EEFT, ENXTPA: EDEN, FDC, FLT, GDOT, GPN, HPY, MA, MGI, ONE, OUTR, PYPL, PAR, SQ, 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 Price / Earnings Multiples and PEG Ratios 2016E Price / Earnings Multiples 2016E PE / Growth (“PEG” Ratio) Banking and Lending Technology 23.9x Financial Data, Content, & Analytics 1.8 Information Processors / Credit Bureaus 19.6x Exchanges 1.8 Financial Data, Content, & Analytics 18.8x Information Processors / Credit Bureaus 1.7 Investment Services, Software, & 18.8x Healthcare / Insurance Technology 1.6 Technology Healthcare / Insurance Technology 17.6x Banking and Lending Technology 1.6 Investment Services, Software, & 1.3 Exchanges 16.9x Technology Online Broker Dealers 16.8x Online Broker Dealers 1.0 Payments 14.6x Payments 1.0 0.0x 5.0x 10.0x 15.0x 20.0x 25.0x 30.0x 0.0 0.5 1.0 1.5 2.0 Notes: 7 Numbers represent medians of sub-sectors. Details available in later pages. Financial Technology Sector Summary Market Summary Long-Term EPS Growth and LTM EBITDA Margins Long-Term EPS Growth LTM EBITDA Margins (1) Online Broker Dealers 17.9% Financial Data, Content, & Analytics 38.7% Banking and Lending Technology 16.6% Banking and Lending Technology 28.2% Investment Services, Software, & Technology 14.5% Information Processors / Credit Bureaus 27.4% Payments 14.4% Financial Data, Content, & Analytics 12.9% Healthcare / Insurance Technology 24.9% Information Processors / Credit Bureaus 11.8% Payments 21.6% Healthcare / Insurance Technology 10.2% Investment Services, Software, & 19.9% Exchanges 9.3% Technology 0% 5% 10% 15% 20% 0% 10% 20% 30% 40% 50% Notes: Numbers represent medians of sub-sectors. Details available in later pages. 8 (1) Online Broker Dealers and Trading Platforms not material. Financial Technology Sector Summary Market Summary Indexed Price Performance by Sector Last 3 Months 1 Year 3 Years Banking & Lending Technology (3.3%) 2.0% 57.8% Information Processors / (5.2%) 3.2% 27.0% Credit Bureaus Healthcare / Insurance (5.3%) 2.6% 26.6% Technology Exchanges (7.6%) (1.2%) 25.1% Financial, Data, Content, & (8.3%) (4.2%) 51.6% Analytics Payments (9.3%) (4.3%) 43.8% Investment Services, (15.5%) (7.5%) 66.2% Software, & Technology Online Broker Dealers (21.4%) (12.5%) 57.2% (30.0%) (20.0%) (10.0%) 0.0% (15.0%) (10.0%) (5.0%) 0.0% 5.0% 0.0% 20.0% 40.0% 60.0% 80.0% Notes: 9 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. $177,468 8% 25.7x Blackhawk Network Holdings, Inc. $1,822 (7%) 12.9x MasterCard Incorporated $100,022 (3%) 25.5x Green Dot Corporation $1,128 28% 15.8x American Express Company $56,194 (28%) 10.8x Net 1 Ueps Technologies Inc. $446 (35%) 4.8x PayPal Holdings, Inc. $47,733 NA 26.3x Higher One Holdings, Inc. $197 45% 20.5x Discover Financial Services $20,101 (18%) 8.8x Sector Average $898 8% 13.5x Sector Average $80,304 (10%) 19.4x LTM Pri ce LTM Pri ce ATM / Kiosks Market Cap. Performance P/E 2016 Merchant Processing Market Cap. Performance P/E 2016 Cardtronics Inc. $1,610 (3%) 11.6x Cielo S.A. $18,115 (3%) 17.2x Outerwall Inc. $560 (49%) 6.1x First Data Corporation $12,220 NA 10.4x Everi Holdings Inc. $219 (52%) 3.5x Worldpay Group plc $8,539 NA 27.1x Sector Average $796 (35%) 7.0x Total System Services, Inc. $8,318 19% 17.3x Vantiv, Inc. $8,219 43% 20.3x LTM Pri ce Global Payments Inc. $8,183 37% 20.2x POS Hardware / Technology Market Cap. Performance P/E 2016 Wirecard AG $5,261 (3%) 23.2x Square, Inc. $3,995 NA NM Ingenico Group $6,269 (6%) 19.4x Heartland Payment Systems, Inc. $3,521 91% 28.1x NCR Corporation $3,285 (15%) 9.0x EVERTEC, Inc. $1,026 (37%) 8.3x VeriFone Systems, Inc. $2,843 (26%) 11.5x Planet Payment, Inc. $154 80% 19.7x PAR Technology Corporation $109 33% NA Sector Average $7,050 28% 19.2x Sector Average $3,127 (3%) 13.3x LTM Pri ce LTM Pri ce Money Transfer Market Cap. Performance P/E 2016 Banking and Lending Technology Market Cap. Performance P/E 2016 The Western Union Company $9,662 (1%) 11.8x Intuit Inc. $25,472 1% 26.9x Euronet Worldwide, Inc. $3,708 25% 18.3x Fiserv, Inc. $21,661 25% 22.1x Moneygram International Inc. $310 (32%) 6.4x Fidelity National Information Services, Inc. $19,752 (10%) 16.2x Sector Average $4,560 (3%) 12.2x Jack Henry & Associates Inc. $6,482 23% 27.8x LendingClub Corporation $3,425 (55%) 33.4x Temenos Group AG $3,303 42% 24.4x LTM Pri ce DH Corporation $2,997 (6%) 14.2x Closed Loop Market Cap. Performance P/E 2016 Ellie Mae, Inc. $2,547 65% 45.9x Alliance Data Systems Corporation $12,814 (24%) 12.8x ACI Worldwide, Inc. $2,403 0% 48.4x FleetCor Technologies, Inc. $12,784 (11%) 21.1x Black Knight Financial Services, Inc. $2,093 NA 27.4x Edenred SA $4,535 (27%) 20.7x Bottomline Technologies (de), Inc. $1,133 11% 18.4x WEX Inc. $2,927 (29%) 19.1x Q2 Holdings, Inc. $831 2% NM Sector Average $8,265 (23%) 18.4x On Deck Capital, Inc. $563 (50%) NM Performant Financial Corporation $86 (59%) NM Sector Average $6,625 (1%) 27.7x LTM Pri ce Information Processors / Credit Bureaus Market Cap. Performance P/E 2016 0 Experian plc $16,188 1% 19.0x Equifax Inc. $12,780 14% 21.5x Fair Isaac Corporation $3,177 19% 20.8x Acxiom Corporation $1,668 8% 37.4x Sector Average $8,453 11% 24.7x Notes: 10 Source: CapitalIQ and Wall Street Research. Financial Technology Sector Summary Market Summary LTM Price Performance and 2016 P/E – Securities / Cap. Mkts. / Data & Analytics ($MM) ($MM) LTM Pri ce Investment Services, Software, & LTM Pri ce Exchanges - Americas Market Cap.