Financial Technology Sector Summary May 4, 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. Insurance / Benefits 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 David Krueger Saif Malik Alexander Berry David Ibarra Director Vice President Vice President Analyst Analyst Phone: (212) 999-7075 Phone: (212) 537-4534 Phone: +44 (0) 207 038-3216 Phone: (212) 999-7079 Phone: (212) 537-4532 Mobile: (973) 229-0436 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] 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 115 125 110 115 105 100 105 95 95 90 85 85 80 75 75 70 65 4/29/15 5/29/15 6/29/15 7/29/15 8/28/15 9/28/15 10/28/15 11/27/15 12/28/15 1/27/16 2/26/16 3/28/16 4/27/16 1/29/16 2/7/16 2/15/16 2/23/16 3/2/16 3/10/16 3/18/16 3/27/16 4/4/16 4/12/16 4/20/16 4/28/16 (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 22.6x Healthcare / Insurance Technology 1.8 Information Processors / Credit Bureaus 20.2x Financial Data, Content, & Analytics 1.8 Financial Data, Content, & Analytics 19.5x Information Processors / Credit Bureaus 1.7 Investment Services, Software, & 19.0x Exchanges 1.7 Technology Healthcare / Insurance Technology 18.0x Banking and Lending Technology 1.3 Investment Services, Software, & 1.3 Online Broker Dealers 16.4x Technology Exchanges 15.3x Online Broker Dealers 1.1 Payments 13.1x Payments 1.1 0.0x 10.0x 20.0x 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) Banking and Lending Technology 15.8% Financial Data, Content, & Analytics 35.5% Online Broker Dealers 15.6% Information Processors / Credit Bureaus 27.4% Investment Services, Software, & Technology 14.9% Banking and Lending Technology 21.8% Payments 13.4% Healthcare / Insurance Technology 12.2% Payments 21.6% Information Processors / Credit Bureaus 12.1% Investment Services, Software, & 19.9% Technology Financial Data, Content, & Analytics 11.3% Healthcare / Insurance Technology 18.0% Exchanges 8.6% 0% 5% 10% 15% 20% 0% 10% 20% 30% 40% 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 Online Broker Dealers 16.2% (6.4%) 77.2% Financial, Data, Content, & 14.8% 1.3% 54.1% Analytics Investment Services, Software, 13.0% 0.2% 83.6% & Technology Payments 11.3% 4.1% 53.7% Information Processors / 10.1% 10.0% 31.9% Credit Bureaus Healthcare / Insurance 9.0% 5.7% 31.9% Technology Exchanges 8.4% (4.2%) 35.4% Banking & Lending Technology 7.9% 5.9% 63.9% 0.0% 10.0% 20.0% (10.0%) (5.0%) 0.0% 5.0% 10.0% 15.0% 0.0% 20.0% 40.0% 60.0% 80.0% 100.0% 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. $184,210 17% 27.1x Blackhawk Network Holdings, Inc. $1,793 (13%) 12.7x MasterCard Incorporated $106,597 8% 27.4x Green Dot Corporation $1,154 38% 16.0x American Express Company $62,226 (16%) 12.1x Net 1 Ueps Technologies Inc. $555 (13%) 6.0x PayPal Holdings, Inc. $47,487 NA 26.2x Higher One Holdings, Inc. $183 35% 19.0x Discover Financial Services $23,196 (3%) 9.9x Sector Average $921 12% 13.4x Sector Average $84,743 2% 20.5x LTM Pri ce LTM Pri ce ATM / Kiosks Market Cap. Performance P/E 2016 Merchant Processing Market Cap. Performance P/E 2016 Cardtronics Inc. $1,783 4% 12.6x Cielo S.A. $21,195 (4%) 19.5x Outerwall Inc. $712 (38%) 6.7x Global Payments Inc. $11,116 44% 22.7x Everi Holdings Inc. $111 (77%) 2.5x First Data Corporation $10,271 NA 8.7x Sector Average $868 (37%) 7.3x Total System Services, Inc. $9,367 29% 18.2x Vantiv, Inc. $8,527 39% 20.7x LTM Pri ce Worldpay Group plc $7,762 NA 24.9x POS Hardware / Technology Market Cap. Performance P/E 2016 Wirecard AG $5,365 (4%) 22.1x Square, Inc. $4,993 NA NM Ingenico Group $7,199 (8%) 21.3x EVERTEC, Inc. $1,025 (35%) 8.3x NCR Corporation $3,604 6% 9.9x Planet Payment, Inc. $200 106% 26.3x VeriFone Systems, Inc. $3,136 (20%) 12.3x JetPay Corporation $39 (10%) NM PAR Technology Corporation $100 55% NA Sector Average $7,260 21% 19.0x Sector Average $3,510 8% 14.5x 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 $9,912 (1%) 12.2x Intuit Inc. $25,911 1% 27.2x Euronet Worldwide, Inc. $4,010 32% 20.0x Fiserv, Inc. $21,791 26% 22.3x Moneygram International Inc. $331 (21%) 6.9x Fidelity National Information Services, Inc. $21,435 5% 17.5x Sector Average $4,751 3% 13.1x Jack Henry & Associates Inc. $6,390 22% 27.4x Temenos Group AG $3,401 46% 26.2x LendingClub Corporation $3,013 (55%) 28.2x LTM Pri ce DH Corporation $2,732 (23%) 14.0x Closed Loop Market Cap. Performance P/E 2016 Ellie Mae, Inc. $2,506 52% 43.5x FleetCor Technologies, Inc. $14,326 (4%) 23.5x ACI Worldwide, Inc. $2,329 (13%) 38.3x Alliance Data Systems Corporation $12,018 (32%) 12.1x Black Knight Financial Services, Inc. $2,210 NA 28.6x Edenred SA $4,533 (28%) 19.6x Q2 Holdings, Inc. $938 17% NM WEX Inc. $3,657 (16%) 22.1x Bottomline Technologies (de), Inc. $931 (8%) 18.2x Sector Average $8,633 (20%) 19.3x On Deck Capital, Inc. $608 (55%) NM Performant Financial Corporation $89 (40%) NM Sector Average $6,735 (2%) 26.5x LTM Pri ce Information Processors / Credit Bureaus Market Cap. Performance P/E 2016 0 Experian plc $17,060 7% 20.1x Equifax Inc. $14,311 24% 23.1x Fair Isaac Corporation $3,348 21% 22.0x Acxiom Corporation $1,708 26% 37.9x Sector Average $9,107 19% 25.8x Notes: 10 Source: CapitalIQ and Wall Street Research. Market data as of April 1, 2016. Financial Technology Sector Summary Market Summary LTM Price Performance and 2016 P/E – Securities / Cap. Mkts. / Data & Analytics ($MM) ($MM) LTM Pri ce Investment Services, Software, & LTM Pri ce Exchanges - Americas Market Cap. Performance P/E 2016 Technol ogy Market Cap. Performance P/E 2016 0 CME Group Inc.