Financial Technology Sector Summary Week of May 8, 2017 1 DEAL DASHBOARD Financial Technology (3) (1) (3) $11.7 Bn | 1,179 Deals Industry Stock Market Performance $347.2 Bn | 3,159 Deals LTM Financing Volume Last Twelve Months LTM M&A Volume 160 Select Recent Financing Transactions Select Recent M&A Transactions Company Amount ($MM) 150 Target Acquirer EV ($MM) 140 $110.0 $675.0 130 $70.0 $30.0 120 $56.0 110 NA 100 $54.0 NA 90 $50.0 NA 80 5/5/16 6/20/16 8/3/16 9/16/16 11/1/16 12/15/16 1/30/17 3/15/17 4/28/17 $32.0 NA Aicai Payments Exchanges Financial Data, Content, Information Processors / $17.5 & Analytics Credit Bureaus NA Banking & Lending Online Broker Dealers Technology $15.7 NA Investment Services, Healthcare / Insurance Software, & Technology Technology S&P 500 (3) (3) Quarterly Financing Volume Quarterly M&A Volume $10 500 $120 876 1000 818 783 750 $8 $8.9 400 $100 800 $99.4 299 298 316 $97.8 276 $80 $6 300 $83.1 $81.6 600 $60 $4 200 400 $40 $3.0 $2 $2.6 $2.6 100 $20 200 $0 0 $0 0 Q2 2016 Q3 2016 Q4 2016 Q1 2017 Q2 2016 Q3 2016 Q4 2016 Q1 2017 Financing Volume ($Bn) Financing Deal Count M&A Volume ($Bn) M&A Deal Count Notes: Source: Capital IQ, CB Insights and GCA FinTech Database. Market Data as of 5/5/17. 1) Refer to footnotes on page 5 for index composition. 2 2) Represents transactions announced between 4/24/17 and 5/8/17. 3) Deal counts include transactions with undisclosed funding amounts and enterprise values for financing and M&A transactions respectively. GCA OVERVIEW Financial Technology Team San Francisco New York London Tokyo th 1 Southampton St. 11-1 Marunouchi 1-chome One Maritime Plaza, 25th Fl. 640 Fifth Avenue, 10 Fl. London WC2R0LR Chiyoda-ku, Tokyo 100-6230 San Francisco, CA 94111 New York, NY 10019 United Kingdom Japan (415) 318-3600 (212) 999-7090 +44 20 7484 4040 +81 (3) 6212-7100 Sean Minnihan Peter Bang Derek Bell Paul DiNardo Steve Fletcher Rob Freiman Managing Director Managing Director Managing Director Managing Director Managing Director Director Global Head of FinTech Phone: (212) 999-7077 Phone: (212) 999-7074 Phone: (212) 999-7089 Phone: (212) 999-7097 Phone: (415) 318-3661 Phone: (212) 999-7075 Mobile: (917) 364-6230 Mobile: (917) 783-4057 Mobile: (914) 953-0689 Mobile: (650) 483-7246 Mobile: (415) 518-6725 Mobile: (973) 229-0436 [email protected] [email protected] [email protected] [email protected] [email protected] [email protected] Michio Suzuki* David Krueger Saif Malik* Alexander Berry Malik Gill Director Vice President Vice President Associate Analyst Phone: +81 3-6212-7145 Phone: (212) 537-4534 Phone: +44 (0) 207 038-3216 Phone: (212) 999-7079 Phone: (212) 537-4529 Mobile: +81 90-7412-9411 Mobile: (616) 822-7179 Mobile: +44 (0) 778 606-8553 Mobile: (818) 851-2300 Mobile: (646) 668-6714 [email protected] [email protected] [email protected] [email protected] [email protected] * Saif Malik is a Vice President at GCA Savvian Europe Limited * Michio Suzuki is a Director at GCA Corporation 3 SECTION I: Market Summary 4 MARKET SUMMARY Industry Stock Market Performance 160 Last 12 Months 170 Last 3 Years 160 150 150 140 140 130 130 120 120 110 110 100 100 90 90 80 80 70 5/5/16 6/20/16 8/3/16 9/16/16 11/1/16 12/15/16 1/30/17 3/15/17 4/28/17 5/5/14 8/21/14 12/9/14 3/27/15 7/15/15 11/2/15 2/18/16 6/7/16 9/23/16 1/11/17 5/1/17 (1) (2) Indexed Price Performance Payments Exchanges Sector 3 Months 1 Year 3 Years (3) (4) Information Processors / Credit Bureaus 12.0% 17.7% 40.5% Financial Data, Content, Information Processors / Banking & Lending Technology 8.8% 22.0% 55.6% & Analytics Credit Bureaus Payments 7.8% 18.7% 38.2% Investment Services, Software, & Technology 5.6% 14.0% 51.9% (6) (5) Banking & Lending Online Broker Dealers Financial, Data, Content, & Analytics 4.3% 18.7% 7.6% Technology Exchanges 3.5% 16.2% 38.6% Online Broker Dealers (1.1%) 42.0% 39.9% (7) (8) Healthcare / Insurance Technology (2.2%) (0.8%) 29.6% Investment Services, Healthcare / Insurance Software, & Technology Technology Notes: (1) Payments: ADS, AIM:SCH, ASX:PPT, AXP, BGC, BOVESPA:CIEL3, CATM, DFS, EEFT, ENXTPA:EDEN, FDC, FLT, GDOT, GPN, MA, PAR, PYPL, SHOP, SQ, TSE:3769, TSS, UEPS, V, VNTV, WEX, WPG, WU, XTRA:WDI. (2) Exchanges: ASX:ASX, ATSE:EXAE, BME:BME, BMV:BOLSA A, BOVESPA:BVMF3, CBOE, CME, ICE, JSE:JSE, KLSE:BURSA, LSE, NDAQ, SEHK:388, SGX:S68, TSX:X, WSE:GPW, XTRA:DB1. (3) Financial Data, Content & Analytics: DNB, ENXTPA:FIM, FDS, HOSE:HHS, MCO, MORN, MSCI, RATE, SPGI, TRI. (4) Information Processors / Credit Bureaus: ACXM, EFX, FICO, INTX, LSE: EXPN. (5) Online Broker Dealers: AMTD, ETFC, GCAP, GLBR, IBKR, SCHW. (6) Banking & Lending Technology: ACIW, BKFS, ELLI, ELVT, EPAY, FIS, FISV, INTU, JKHY, LC, ONDK, PFMT, QTWO, SWX: TEMN. 5 (7) Investment Services, Software, & Technology: BR, DST, ENV, FNGN, SEIC, SSNC. (8) Healthcare / Insurance Technology: ATHN, CRD.B, DAR:CRDB, EBIX, GWRE, BSE:532254, SY, VRSK. MARKET SUMMARY EBITDA Multiples and Margins 2017E EBITDA Multiples 2017 EBITDA Margins Healthcare / Insurance Technology 16.5x Exchanges 58.4% Information Processors / Credit Bureaus 14.8x Online Broker Dealers 45.6% Banking and Lending Technology 14.2x Financial Data, Content, & Analytics 36.8% Exchanges 14.0x Banking and Lending Technology 32.4% Investment Services, Software, & 13.9x Information Processors / Credit Bureaus 31.2% Technology Investment Services, Software, & Financial Data, Content, & Analytics 13.6x 25.9% Technology Payments 12.7x Payments 25.6% Online Broker Dealers 7.0x Healthcare / Insurance Technology 18.8% 0.0x 5.0x 10.0x 15.0x 20.0x 0% 10% 20% 30% 40% 50% 60% 70% Notes: 6 Numbers represent medians of sub-sectors. Details available in later pages. MARKET SUMMARY Price / Earnings Multiples and PEG Ratios 2017E Price / Earnings Multiples 2017E PE / Growth (“PEG” Ratio) | Long-Term EPS Growth Banking and Lending Technology 29.1x Banking and Lending Technology 2.2 15.7% Information Processors / Credit Bureaus 25.0x Information Processors / Credit Bureaus 2.1 13.7% Online Broker Dealers 24.2x Financial Data, Content, & Analytics 2.0 11.3% Healthcare / Insurance Technology 23.0x Exchanges 1.9 10.8% Financial Data, Content, & Analytics 22.0x Healthcare / Insurance Technology 1.8 14.0% Investment Services, Software, & Investment Services, Software, & 21.9x 1.5 16.0% Technology Technology Exchanges 20.1x Online Broker Dealers 1.3 16.6% Payments 17.9x Payments 1.2 14.9% 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: 7 Numbers represent medians of sub-sectors. Details available in later pages. MARKET SUMMARY LTM Price Performance and 2017 P/E – Payments / Banking ($MM) ($MM) LTM Price LTM Price Networks Market Cap. Performance P/E 2017 Prepaid Market Cap. Performance P/E 2017 Visa Inc. $212,329 19% 26.4x Blackhawk Network Holdings, Inc. $2,355 32% 25.4x Mastercard Incorporated $125,946 22% 27.2x Green Dot Corporation $1,757 53% 17.9x American Express Company $70,001 23% 13.8x Net 1 UEPS Technologies, Inc. $587 (7%) 5.8x PayPal Holdings, Inc. $59,222 27% 27.8x Sector Average $1,566 26% 16.3x Discover Financial Services $22,926 10% 10.0x Sector Average $98,085 20% 21.0x LTM Price Integrated Payments Hardware / Technology Market Cap. Performance P/E 2017 LTM Price Ingenico Group - GCS $5,875 (18%) 18.5x Merchant Processing Market Cap. Performance P/E 2017 NCR Corporation $5,236 55% 12.8x Cielo S.A. $19,949 (10%) 14.7x VeriFone Systems, Inc. $2,085 (31%) 12.5x First Data Corporation $14,683 45% 10.5x Cardtronics plc $1,646 (6%) 12.7x Global Payments Inc. $13,124 19% 22.0x Everi Holdings Inc. $440 344% 7.0x Vantiv, Inc. $12,526 18% 19.5x PAR Technology Corporation $133 51% NA Total System Services, Inc. $10,574 11% 17.8x Sector Average $2,569 66% 12.7x Worldpay Group plc $8,092 7% 23.2x Wirecard AG $7,427 42% 25.3x LTM Price Square, Inc. $7,400 52% 93.7x Banking and Lending Technology Market Cap. Performance P/E 2017 GMO Payment Gateway, Inc. $1,837 (22%) 66.4x EVERTEC, Inc. $1,197 24% 10.1x Intuit Inc. $32,265 26% 27.9x SafeCharge International Group Limited $506 (1%) 15.8x Fidelity National Information Services, Inc. $27,455 18% 19.5x CardConnect Corp. $425 NA NM Fiserv, Inc. $25,485 21% 23.4x Planet Payment, Inc. $224 5% 19.2x Jack Henry & Associates, Inc. $7,619 19% 30.3x JetPay Corporation $34 (13%) NM Temenos Group AG $6,181 67% 36.8x Sector Average $7,000 14% 28.2x Ellie Mae, Inc. $3,663 41% 57.7x Black Knight Financial Services, Inc. $2,927 31% 30.8x ACI Worldwide, Inc. $2,813 23% 52.2x LTM Price LendingClub Corporation $2,322 (16%) NM Money Transfer Market Cap. Performance P/E 2017 Q2 Holdings, Inc. $1,572 68% NM The Western Union Company $9,138 3% 11.5x Bottomline Technologies (de), Inc. $952 2% 25.6x Euronet Worldwide, Inc.