Mercer Capital’s FinTech Watch 4th Quarter 2013 Public Market Indicators The FinTech Industry has outperformed the S&P 500 in the trailing twelve month period ending 10/31/2013 In This Issue § Historical and prospective revenue and EBITDA growth have Public Market Indicators outpaced that of the broader economy and a number of other Returns 2 industries Valuation Multiples 3 Peer Reports 4 Market performance has fluctuated a bit as investors weigh: Articles of Note 7 § Threats of new entrants Segment Focus: Payments 8 § Continued technological change M&A Activity Overview 11 § Emerging risks including regulatory and business model Venture Capital Activity 12 Case Study: Square, Inc. 13 About Mercer Capital 16 1 MCM FinTech Indices vs. S&P 500 for LTM Period Mercer Capital FinTech 150 ! Indices vs. S&P 500 140 ! for LTM Period ! 130 ! 120 ! 110 ! 100 ! 90 ! November 1, 2012 = 100 80 ! ! ! ! ! ! ! ! ! ! ! ! ! 1/6/2013 2/6/20133/6/2013 4/6/2013 5/6/2013 6/6/2013 7/6/2013 8/6/2013 9/6/2013 11/6/201212/6/2012 10/6/2013 Solutions! S&P 500! Payments! Technology! Median Total Return Segment Month-to-Date Year-to-Date Last 12 Months Through October 31, 2013 Payments 4.03% 38.06% 41.76% Solutions 4.08% 35.71% 36.13% Technology 6.14% 36.57% 40.63% S&P 500 4.60% 25.30% 25.88% 2 Valuation Multiples Consistent with recent historical growth patterns and the near-term outlook, FinTech companies are generally priced at a premium to the broader markets. Price/ Ent'p Value / Ent'p Value / Ent'p Value / Ent'p Value / Dividend Yield LTM EPS LTM EBITDA FY 14 EBITDA LTM EBIT LTM Revenue Payments 24.98 11.02 9.27 15.30 2.28 0.00% Solutions 26.35 11.14 10.38 14.64 2.43 0.00% Technology 24.28 12.50 11.15 16.64 3.30 0.47% Pricing as of 11/1/2013 3 Entp Value/EBITDA Entp Value/LTM LTM 1-Yr Price/ 11/1/13 Market Entp 2014 Ticker Name Return Earnings LTM FY14E EBIT Revenue Yield Revenue EBITDA Margin Net Inc. Price Cap ($M) Val ($M) EBITDA (%) LTM Processors ADS Alliance Data Systems Corp. $236.78 63.74 11,541 19,733 24.98 nm 12.97 nm nm 0.0% NA NA nm 461,980 1,521,000 HAWK Blackhawk Net Holdings, Inc. $23.25 NA 1,208 1,096 nm 12.03 7.68 15.98 1.02 nm 1,069,805 91,116 8.5% 42,452 142,700 CATM Cardtronics, Inc. $39.58 39.17 1,777 2,091 37.51 11.16 8.43 21.00 2.60 0.0% 803,111 187,396 23.3% 47,392 248,000 DLX Deluxe Corporation $46.87 51.40 2,367 2,910 12.96 7.70 7.08 9.28 1.87 2.1% 1,554,650 378,050 24.3% 182,593 411,050 EEFT Euronet Worldwide, Inc. $43.40 112.24 2,182 2,190 33.58 12.74 9.73 20.47 1.58 0.0% 1,389,013 171,885 12.4% 64,977 225,010 EVTC EVERTEC, Inc. $23.38 NA 1,915 2,598 116.76 33.57 12.82 417.46 7.39 nm 351,338 77,380 22.0% 16,402 202,615 FLT FleetCor Technologies, Inc. $114.16 139.68 9,380 10,168 33.93 21.90 15.64 24.98 12.07 0.0% 842,287 464,335 55.1% 276,452 650,098 GCA Global Cash Access Hldgs $8.27 15.99 541 587 22.17 8.72 8.01 11.55 1.01 0.0% 581,844 67,333 11.6% 24,390 73,279 GPN Global Payments Inc. $59.70 36.23 4,351 5,164 18.59 10.32 9.66 13.45 2.14 0.1% 2,415,321 500,377 20.7% 234,093 534,388 GDOT Green Dot Corporation $25.46 142.48 951 621 28.91 7.01 5.01 9.83 1.09 0.0% 568,592 88,631 15.6% 32,881 124,030 HPY Heartland Payment Sys, Inc. $40.25 42.12 1,483 1,457 19.47 7.32 9.27 12.14 0.69 0.7% 2,104,957 199,004 9.5% 76,175 157,200 ONE Higher One Holdings, Inc. $7.99 (36.74) 375 481 11.45 7.21 8.75 8.84 2.43 0.0% 198,429 66,778 33.7% 32,791 55,000 MA MasterCard Incorporated $737.48 57.92 88,776 NA 28.66 nm nm nm nm 0.3% 8,115,000 4,705,000 58.0% 3,098,000 5,640,400 MGI MoneyGram International, Inc. $20.83 32.34 1,207 2,052 24.54 10.89 6.52 14.63 1.42 0.0% 1,443,000 188,524 13.1% 49,200 314,706 OPAY Official Pymts Holdings, Inc. $8.34 56.47 140 NA (50.56) nm nm nm nm 0.0% 140,843 4,998 3.5% (2,761) 15,500 PLPM Planet Payment, Inc. $2.64 1.54 144 149 (41.37) (343.06) 14.05 (44.36) 3.27 0.0% 45,631 (435) -1.0% (3,482) 10,623 TSS Total System Services, Inc. $29.73 33.37 5,631 6,850 23.58 nm 8.99 nm nm 1.3% 2,010,613 NA nm 238,780 762,150 JTPY Uni. Bus. Pmnt Sol Corp. $2.65 (55.83) 31 53 nm nm nm nm nm nm NA NA nm NA NA VNTV Vantiv, Inc. $27.02 38.85 5,244 7,210 43.89 14.19 11.13 21.82 3.53 0.0% 2,043,814 508,161 24.9% 119,492 647,500 PAY VeriFone Systems, Inc. $22.64 (28.13) 2,473 3,320 (115.40) 15.74 10.74 356.27 1.89 0.0% 1,756,386 211,012 12.0% (21,430) 309,133 V Visa Inc. $199.16 39.55 127,116 NA 25.53 nm nm nm nm 0.7% 11,778,000 NA nm 4,980,000 8,577,800 WU Western Union Company $17.48 47.13 9,646 11,872 11.18 8.34 8.43 10.21 2.14 2.9% 5,544,800 1,422,900 25.7% 862,900 1,408,900 WEX WEX Inc. $94.85 30.15 3,687 5,163 25.64 16.33 14.18 20.13 7.33 0.0% 704,178 316,134 44.9% 143,793 364,200 XOOM Xoom Corporation $30.33 NA 1,133 1,027 306.07 132.72 56.25 182.51 9.15 nm 112,249 7,735 6.9% 3,702 18,251 Median 39.17 2,048 2,190 24.76 11.02 9.47 15.30 2.14 0.0% 1,229,409 187,960 18.2% 64,977 309,133 Software/Hardware ADP Automatic Data Proc., Inc. $75.31 30.32 36,256 37,939 26.15 19.16 15.09 22.84 3.42 2.3% 11,108,800 1,980,000 17.8% 1,429,200 2,513,450 CVG Convergys Corporation $19.61 15.30 2,034 1,580 18.86 6.87 5.98 11.19 0.78 1.1% 2,014,200 230,100 11.4% 108,400 264,187 NSP Insperity, Inc. $35.62 33.20 911 749 25.81 9.01 7.25 11.96 nm 4.7% 2,231,417 83,159 3.7% 34,560 103,339 PAYX Paychex, Inc. $41.99 30.84 15,335 15,223 26.24 15.53 14.30 17.26 6.58 3.2% 2,315,000 980,400 42.3% 578,700 1,064,540 WDAY Workday, Inc. $75.35 54.03 13,073 13,112 (59.33) nm (173.44) nm 37.11 0.0% 353,337 NA nm (141,408) (75,600) Median 30.84 13,073 13,112 25.81 12.27 7.25 14.61 5.00 2.3% 2,231,417 605,250 14.6% 108,400 264,187 Source: SNL Financial FinTech Peer Reports: Payments Segment / As of November 1, 2013 4 Entp Value/EBITDA Entp Value/LTM LTM 1-Yr Price/ 11/1/13 Market Entp 2014 Ticker Name Return Earnings LTM FY14E EBIT Revenue Yield Revenue EBITDA Margin Net Inc. Price Cap ($M) Val ($M) EBITDA (%) LTM Outsourced ACXM Acxiom Corporation $33.27 81.01 2,464 2,505 42.89 11.78 11.90 24.51 2.29 0.0% 1,093,893 212,568 19.4% 57,454 210,495 CSC Comp Sciences Corp. $50.39 64.74 7,418 8,063 6.45 4.16 3.97 9.66 0.58 1.6% 13,925,000 1,936,000 13.9% 1,150,000 2,033,000 CSGS CSG Systems Intel, Inc. $27.91 39.72 944 1,119 16.27 7.86 6.95 13.39 1.49 1.1% 750,926 142,454 19.0% 58,060 161,000 EFX Equifax Inc. $65.18 31.35 7,919 9,251 24.28 12.50 10.97 16.45 4.09 1.3% 2,259,200 740,000 32.8% 326,200 843,187 EXLS ExlService Holdings, Inc. $29.06 (1.36) 956 826 21.53 10.02 8.05 14.57 1.75 0.0% 471,982 82,449 17.5% 44,401 102,607 FICO Fair Isaac Corporation $56.69 18.66 1,996 2,382 22.15 nm 12.09 nm nm 0.1% 743,444 NA nm 90,095 197,000 FIS Fidelity Natl Info Svcs, Inc.