Software COMPANYSector PRESENTATION Summary Week of August 7, 2017 1 DEAL DASHBOARD Software $30.7 Billion 379 $24.1 Billion 59 Financing Volume YTD (1)(2) Financing Transactions YTD (1)(2) M&A Volume YTD (3) M&A Transactions YTD (3) Select Financing Transactions Quarterly Financing Volume (1)(2) Quarterly M&A Volume (3) Select M&A Transactions (4) Company Amount ($MM) $Bn 16% $Bn (23)% Target Acquirer EV ($MM) $14 $50 $12 $103 $10 $41 $3,903 $9 $6 $6 $6 $24 $101 $5 $1,370 $4 $16 $15 $15 $12 ( ) $6 $5 $75 ( ) $1,125 Q2'15 Q3'15 Q4'15 Q1'16 Q2'16Q3'16 Q4'16 Q1'17 Q2'17 Q2'15 Q3'15 Q4'15 Q1'16 Q2'16 Q3'16 Q4'16 Q1'17 Q2'17 $67 $834 Quarterly Financing Deal Count (1)(2) Quarterly M&A Deal Count (3) ( ) 16% 2% $46 $614 156 160 127 123 118 111 $35 103 94 29 29 29 $531 86 24 24 25 21 $25 13 14 $344 $22 $270 Q2'15 Q3'15 Q4'15 Q1'16 Q2'16Q3'16 Q4'16 Q1'17 Q2'17 Q2'15 Q3'15 Q4'15 Q1'16 Q2'16 Q3'16 Q4'16 Q1'17 Q2'17 Last 12 Months Software Price Performance vs. S&P 500 (5) M&A EV/ NTM Rev. Over Time (6) 35% IGV SPX All Buyers Strategic Buyers PE Buyers ` Financing Activity by Quarter 30% 27% 6 5.3x 4.9x 25% 4.7x 5 4.5x 4.6x 4.2x 4.3x 3.9x 3.9x 4.0x 4.1x 20% 4 3.6x 3.7x 3.1x 2.9x 2.7x 2.9x 15% 3 2.5x 13% 2.2x 2.3x 2.2x 10% 2 5% 1 0% 0 Aug-16 Sep-16 Oct-16 Nov-16 Dec-16 Jan-17 Feb-17 Mar-17 Apr-17 May-17 Jun-17 Jul-17 Aug-17 2011 2012 2013 2014 2015 2016 2017 (5%) Notes: Source: Capital IQ, PitchBook, and Dow Jones VentureSource. Market Data as of 08/04/2017. 1) Criteria based on software series A and subsequent rounds of global financings greater than or equal to $20MM. 2) Financings include Software Venture and Private Equity Growth / Expansion activity. 3) Criteria based on global target software M&A deals with transaction enterprise values greater than $50MM. 4) Software M&A transactions reflect select transactions in CY2017. 2 5) iShares North American Tech-Software ETF (IGV), used as proxy for software landscape. Top holdings in the ETF include ADBE, MSFT, ORCL, CRM, and INTU. 6) Criteria based on global public target software M&A deals with enterprise transaction values greater than $100MM. GCA OVERVIEW The GCA Software Team US Team Daniel Avrutsky Jimmy Orozco Josh Wepman Paul DiNardo Steve Fletcher Managing Director Managing Director Managing Director Managing Director Managing Director [email protected] [email protected] Software & Digital Media [email protected] Head of Software [email protected] [email protected] Gautam Garg Glen Kruger Mike Janovec Vice President Director Vice President [email protected] [email protected] [email protected] Alex Vitale Arthur Kirsch Chris Gough Derek Bell Managing Director Managing Director Managing Director Managing Director Auto Tech Healthcare IT Real Estate Tech Business Services [email protected] [email protected] [email protected] [email protected] John Lambros JT Herman Peter Bang Sean Minnihan Managing Director Managing Director Managing Director Managing Director Head of Digital Media Industrial Technology Financial Services FinTech [email protected] [email protected] Financial Software Financial Software [email protected] [email protected] Executive Leadership Select Europe Team Select Asia Team Todd Carter *Adrian Reed *Phil Adams *Raiko Stelten **Akikazu Ida **Ryuichi Kanemaki Co-President & CEO Managing Director CEO of GCA Altium Director Co-Head of Asian Managing Director [email protected] [email protected] [email protected] [email protected] Technology & Media [email protected] [email protected] Clark Callander *Sascha Pfeiffer *Stephen Georgiadis *Tobias Schultheiss Sameer Jindal **Tomohiko Kubota Managing Director Co-Head of European Managing Director Managing Director Managing Director Managing Director Head of Investment Banking Technology & Media [email protected] [email protected] Head of Indian Operations CEO of AMPLIA [email protected] [email protected] [email protected] [email protected] *Adrian Reed, Phil Adams, Sascha Pfeiffer, Stephen Georgiadis and Tobias Schultheiss are Managing Directors at GCA Altium Limited, a wholly-owned subsidiary of GCA Corporation. *Raiko Stelten is a Director at GCA Altium Limited, a wholly-owned subsidiary of GCA Corporation. 3 **Akikazu Ida, Ryuichi Kanemaki and Tomohiko Kubota are Managing Directors at GCA Corporation. RECENT STOCK PERFORMANCE Index Performance Last 12 Months Last 3 Years 30% 75% 60% 21% 45% 12% 30% 15% 3% Aug-16 Sep-16 Oct-16 Nov-16 Dec-16 Jan-17 Feb-17 Mar-17 Apr-17 May-17 Jun-17 Jul-17 Aug-17 0% (6%) Aug-14 Nov-14 Feb-15 May-15 Aug-15 Nov-15 Feb-16 May-16 Aug-16 Nov-16 Feb-17 May-17 Aug-17 (15%) (15%) (30%) Sector 3 Months 1 Year 3 Years Platform 2.4% 17.7% 44.4% Security 6.9% 17.8% 33.7% Infrastructure (0.6%) 13.4% 17.4% BI & Analytics (0.6%) 6.9% 10.5% Vertical (1.7%) 15.1% 49.9% SaaS / On Demand 5.4% 21.1% 64.1% Notes: Source: Capital IQ. Market Data as of 08/04/2017. BI & Analytics: ATTU, AYX, CLDR, DATA, DWCH, FICO, GSUM, HDP, MSTR, SPLK, TDC, VRNT. Infrastructure: APPN, ATEN, CA, CTXS, CVLT, FFIV, LOGM, MCRO, MULE, NEWR, NOW, NTCT, NTNX, PRGS, PSTG, RHT, SOW, SPLK, TEAM, VMW. Platform: GOOGL, IBM, MSFT, ORCL, SAP. SaaS / On Demand: AMBR, APPN, APTI, AYX, AZPN, BCOV, BLKB, BNFT, BOX, BV, CALD, CARB, CLDR, COUP, COVS, CRM, CSLT, CSOD, ECOM, FIVN, HUBS, INST, JCOM, LOGM, LPSN, MIME, MRIN, MULE, NEWR, NOW, OKTA, PAYC, PCTY, PCYG, QLYS, RNG, RP, SHOP, SPSC, TWOU, ULTI, VEEV, WDAY, WK, YEXT, ZEN. Security: ABT, CHKP, CUDA, CYBR, FEYE, FSC1V, FTNT, IMPV, IPAS, MIME, MOBL, PANW, PFPT, QLYS, RPD, SCWX, SPLK, SYMC, Trend Micro, VDSI, ZIXI. 4 Vertical: APPF, ATHN, BLKB, CERN, CLGX, CSLT, CSU, ELLI, EXA, GWRE, HSTM, INOV, INST, MDRX, MDSO, RP, SSNC, SSNI, VEEV, WBMD. TRADING COMPARABLES Valuation and Operational Metrics EV / 2017E Revenue EV / 2017E EBITDA 7.0x 40.0x 37.4x 6.1x 35.0x 6.0x Median: 4.7x 5.1x Median: 26.3x 5.0x 30.0x 28.1x 27.3x 5.0x 4.5x 25.4x 25.3x 4.0x 4.0x 25.0x 4.0x 20.0x 3.0x 15.0x 12.1x 2.0x 10.0x 1.0x 5.0x 0.0x 0.0x SaaS Vertical Infrastructure Platform BI & Analytics Security SaaS Security BI & Analytics Infrastructure Vertical Platform 2017E / 2016A Rev. Growth 2017E EBITDA Margin 40.0% 40.0% 36.4% 35.0% 35.0% Median: 16.4% Median: 22.0% 30.0% 30.0% 25.0% 25.1% 24.7% 23.2% 25.0% 25.0% 20.7% 20.0% 16.7% 16.1% 14.4% 20.0% 16.9% 14.0% 15.0% 11.8% 15.0% 10.0% 10.0% 5.0% 5.0% 0.0% 0.0% SaaS BI & Analytics Infrastructure Vertical Security Platform Platform Infrastructure Vertical Security SaaS BI & Analytics Notes: Source: Capital IQ. Market Data as of 08/04/2017. Figures represent mean values of respective comp groups. BI & Analytics: ATTU, AYX, CLDR, DATA, DWCH, FICO, GSUM, HDP, MSTR, SPLK, TDC, VRNT. Infrastructure: APPN, ATEN, CA, CTXS, CVLT, FFIV, LOGM, MCRO, MULE, NEWR, NOW, NTCT, NTNX, PRGS, PSTG, RHT, SOW, SPLK, TEAM, VMW. Platform: GOOGL, IBM, MSFT, ORCL, SAP. SaaS / On Demand: AMBR, APPN, APTI, AYX, AZPN, BCOV, BLKB, BNFT, BOX, BV, CALD, CARB, CLDR, COUP, COVS, CRM, CSLT, CSOD, ECOM, FIVN, HUBS, INST, JCOM, LOGM, LPSN, MIME, MRIN, MULE, NEWR, NOW, OKTA, PAYC, PCTY, PCYG, QLYS, RNG, RP, SHOP, SPSC, TWOU, ULTI, VEEV, WDAY, WK, YEXT, ZEN. Security: ABT, CHKP, CUDA, CYBR, FEYE, FSC1V, FTNT, GUID, IMPV, IPAS, MIME, MOBL, PANW, PFPT, QLYS, RPD, SCWX, SPLK, SYMC, Trend Micro, VDSI, ZIXI. 5 Vertical: APPF, ATHN, BLKB, CERN, CLGX, CSLT, CSU, ELLI, EXA, GWRE, HSTM, INOV, INST, MDRX, MDSO, RP, SSNC, SSNI, VEEV, WBMD. PUBLIC COMPANY VALUATIONS Software Trading Statistics ($MM, Except Per Share Data) Stock Trading Statistics Operating Metrics Price Equity Net Enterprise EV / Revenue EV / EBITDA Price / EPS CY Rev. Growth EBITDA Margin 8/4/2017 Value Debt Value CY 16A CY 17E CY 18E CY 16A CY 17E CY 18E CY 16A CY 17E CY 18E 16A/15A 17E/16A 18E/17E CY 16A CY 17E CY 18E Platform Alphabet Inc. $945.79 $655,318 ($90,758) $564,560 6.3x 5.2x 4.4x 18.9x 13.1x 11.0x 33.9x 25.1x 23.0x 20.4% 20.1% 17.2% 33.1% 39.8% 40.2% Microsoft Corporation $72.68 559,799 (40,403) 519,396 6.1 5.2 4.8 18.7 13.2 12.3 34.2 21.7 21.6 (2.7%) 17.3% 7.2% 32.4% 39.0% 39.2% Oracle Corporation $49.96 206,669 (8,169) 198,500 5.3 5.1 4.9 13.6 11.2 10.5 23.8 17.4 16.1 (0.6%) 4.0% 4.0% 39.2% 45.6% 47.0% International Business Machines Corporation $145.16 135,280 33,379 168,659 2.1 2.2 2.2 9.1 9.1 9.0 11.7 10.6 10.5 (2.2%) (2.5%) (0.2%) 23.2% 23.8% 24.2% SAP SE $107.28 128,619 1,897 130,516 5.6 4.7 4.4 20.5 13.8 12.9 33.4 22.0 20.0 3.1% 19.9% 6.5% 27.4% 33.8% 34.1% Mean 5.1x 4.5x 4.1x 16.2x 12.1x 11.1x 27.4x 19.4x 18.2x 3.6% 11.8% 6.9% 31.0% 36.4% 37.0% Median 5.6 5.1 4.4 18.7 13.1 11.0 33.4 21.7 20.0 (0.6%) 17.3% 6.5% 32.4% 39.0% 39.2% Infastructure VMware, Inc.