The Next Big Thing June 2013 Agenda 1 About Petsky Prunier 2 Market Overview 3 The Next Big Thing – Trends & Activity 2 Petsky Prunier was Ranked #1 by Bloomberg in 2011‐2012 for Mid‐Market Internet & Advertising Transactions Rank Advisor Deal Count 1Petsky Prunier LLC 30 2Nomura Holdings Inc 24 3GCA Savvian Group Corp 23 4Goldman Sachs & Co. 20 5MorganStanley 19 6Jordan Edmiston Group 18 7Jefferies Group Inc. 16 8China Renaissance Partners 15 8Sumitomo Mitsui Financial 15 10 JP Morgan 14 10 RBC Capital Markets 14 Based on number of deals announced in 2011‐2012 valued at $500 million or less Nearly 60 transactions closed since 2010: . Ranging from strategic sales and divestitures to private equity recaps to growth, mezzanine, and alternative financings . Across a broad universe of industries, including digital advertising and marketing, eCommerce and digital media, technology and software, information services, and healthcare 3 Petsky Prunier: Maximizing Shareholder Value Overview . Founded in 1999 . Focused on the technology, marketing, media, eCommerce, and healthcare industries • More than 35 focused professionals . Unique combination of investment banking and consulting expertise . New York, Palo Alto, Las Vegas, Chicago, Tampa . Sell‐side and private placement close rate is unmatched at our level of deal volume . Deep relilations hips across a bdbroad spectrum of venture capilital and private equity groups, ldlenders and strategic buyers . With strategic consulting firm Winterberry Group, one of the largest industry‐specific advisors providing strategic and transactional services . International reach enhanced through our partnership with investment bank Altium, which operates from ten offices across Europe . Securities transactions processed through Petsky Prunier Securities LLC, a licensed broker‐dealer . Sell‐Side Representation . Technology . Strategic Development and Competitive Analysis . Capital Raising and Private Placements . Media . M&A Transaction Due Diligence Support and . Corporate Divestitures . Marketing Valuation Analysis . M&A Advisory . eCommerce . Acquisition Strategy and Target Identification . Fairness Opinions . Healthcare . Publishing and Thought Leadership 4 Representative Recent eCommerce and Related Industry Transactions a leading digital advertising has sold monetization and shopper marketing partner for e‐commerce retailers a real‐time behavioral a portfolio company of advertising company provider of online travel has been acquired by guides for top destinations has been sold to around the world to with financing from (NYSE: GCI) (NYSE: AOL) a dynamic display media and retargeting company a provider of a cloud‐based a leader in multichannel integration platform for the retail, ecommerce and has been sold to digital marketing industry loyalty marketing services has received $15M has been sold to financing led by (JASDAQ:4755) the top independent (NASDAQ: TREE) direct‐to‐consumer has sold marketer of dental has been sold to savings plans a leading online lead has been sold to generation business to (Nasdaq: GSIC) (Nasdaq: LEDR) ) 5 Agenda 1 About Petsky Prunier 2 Market Overview 3 The Next Big Thing – Trends & Activity 6 Marketing, Media, and Technology Transaction Activity (Last Twelve Months as of 5/31/13) 2013 Last Twelve Months Transaction Value by Segment 2013 Last Twelve Months Transactions by Segment Total: $161.4 Billion Total: 4,576 Deals Marketing Digital Software Marketing Technology Advertising eCommerce/ 610 Deals Technology $9,366.0 $5,696.3 Digital Media 773 Deals Software Traditional 905 Deals eCommerce/ $20,131.4 Marketing Media Digital Media Services $39,595.4 $23,626.3 91 Deals Digital Technology Advertising 450 Deals Agency & Information & 350 Deals Communications Marketing Business Traditional 234 Deals Information & Services Communications Services Media Technology Business $10,054.2 $8,473.7 $12,748.4 670 Deals $18,876.5 Services M&A and Investment Volume: 1Q09 –1Q13 ($BN) 282 Deals All transactions; value based on reported values only $50.2 $141.8 $179.6 $189.5 $50.9 $70. 0 $64.8 $60.0 $54.9 $49.5 $51.6 $50.0 $42.7 $42.7 $40.3 $37.8 $36.6 $35.4 $40.0 $31.7 $27.6 $30.0 $23.8 $22.8 $23.2 $20.0 $12. 5 $8.9 $10.0 $5.0 302 356 361 421 393 621 986 1,142 1,135 1,147 1,083 1,206 1,170 1,215 1,042 722 $0.0 353 311 1Q09 2Q09 3Q09 4Q09 1Q10 2Q10 3Q10 4Q10 1Q11 2Q11 3Q11 4Q11 1Q12 2Q12 3Q12 4Q12 1Q13 2Q13 YTD 7 eCommerce and Multichannel Marketing Deal Activity (Last Twelve Months as of 5/31/13) Marketers 2013 LTM BUYER/INVESTOR BREAKDOWN Transactions Reported Value ($MM) Strategic Buyout Venture/Growth Capital # % $ % # $ # $ # $ eCommerce 297 80% 10,790.1 34% 78 1,659.3 6 4,945.1 213 4,185.7 Catalog 9 2% 697.8 2% 6 392.8 2 235.0 1 70.0 Other* 63 17% 20,096.6 64% 44 11,345.6 8 7,997.9 11 753.1 Total 369 100% 31,584.4 100% 128 13,397.6 16 13,178.0 225 5,008.8 Transaction Value by Segment ($MM) Transaction Volume by Segment ($MM) Last Twelve Months as of 4/30/13: Last Twelve Months as of 4/30/13: eCommerce $10,392.8 Catalog eCommerce $520. 0 297 Deals Other 63 Deals Catalog 9 Deals Other $18,594.8 *Other consists of Affinity/Partner, Direct Selling, and Retail 8 eCommerce and Multichannel Marketing M&A Trends 2002‐2013 Year‐to‐Date Transaction Volume 400 349 350 325 324 300 265 250 229 Volume 202 200 183 174 158 154 150 114 104 sactions nn 100 Tra 50 0 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 YTD Catalog Other* eCommerce 2002‐2013 Year‐to‐DtDate TtiTransaction VlValue ($BN) $60 $53.0 $50 $46.7 $43.0 $40 Value $31. 1 $32.4 $30 $22.3 $19.5 $21.3 $20 $16.3 $13.4 Transactions $8.5 $10 $5.5 $0 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 YTD Catalog Other* eCommerce *Other consists of Affinity/Partner, Direct Selling, and Retail 9 Most Active Buyers and Investors (Last Twelve Months as of 5/31/13) Number of Buyer Representative Targets Transactions Amazon.com, Inc. 5 AtidAstrid, EiEvi ThTechno log ies, GdGoodrea ds, IVONA SftSoftware, UNUpNext Apple Inc. 4 AuthenTec, Col or Labs, Particle, WifiSLAM IAC/InterActiveCorp 4 About.com, DateHookUp.com, Pastas Party, Tutor.com fab.com 3 Fab DBY, Llustre Design, True Sparrow Systems Myntra.com 3 Exclusively.In, Fitiquette, SherSingh Shutterfly, Inc. 3 MyPublisher, Penguin Digital, ThisLife Target Corpora ti on 3 CHEFS, Cooki ng.com, Pikes Peak Direct Marketing Tesco PLC 2 Mobcast Services, WE7 Number of Investor Representative Investments Transactions Summit Partners LP 9 Jade 1352, Jumia, Lazada, Linio, Moto, Namshi, Westwing Home and Living Accel Partners 6 BaubleBar, BEBB India, BookMyShow, Dropcam, One Jackson, Qriously 500 Startups 4 BarkBox, Chews e, Mile High Organics, SupplyHog Andreessen Horowitz 4 Flurish, Julep Beauty, Ky,ynetic, Runscop,pe, Zulily Canaan Partners 4 Artspace Marketplace, Borro, Instacart, Onefinestay GRP Partners 4 ChowNow, DailyLook.com, NuORDER, Pop‐Up Pantry Battery Ventures 3 Modria, Retail Relay, Wayfair.com First Round Ca pi ta l 3 EAT Cl ub, Grand St., The Founders Cl ub General Ca ta l ys t Partners LLC 3 JAND, NaureBox, Warby Parker Insight Venture Partners 3 B2B‐Center, IndiaGoGo, One Kings Lane J.P. Morgan Asset Management 3 Dafiti, KupiVip.ru, Zalando 10 eCommerce and Multichannel Marketing Largest Acquisitions & Investments (Deals with Terms Announced for the Last Twelve Months as of 5/31/13) ($ in Millions) Acquisitions Date Target Segment Buyer Deal Value EV/Revenue EV/EBITDA 10/24/12 PSS World Medical, Inc. Direct Selling McKesson Corporation 1,819.0 0.8x 10.7x 11/08/12 KkKayak SftSoftware CtiCorporation CiComparison Shopp ing PiPrice line.com, Inc. 1, 629. 0 585.8x 30. 2x 10/22/12 Ancestry.com Inc. eCommerce Permira Advisers 1,590.4 3.5x 10.5x 05/23/13 rue21, Inc. Retail Apax Partners 970.4 1.1x 9.6x 06/04/12 1‐800 Contacts, Inc. eCommerce WellPoint, Inc. 900.0 2.3x NA 05/02/12 Charming Shoppes, Inc. Retail Ascena Retail Group, Inc. 890.0 0.4x 10.7x 03/12/13 Naspers Ltd., Slando.ru and OLX.ru Classifieds/Auctions/P‐to‐P Avito.ru 570.0 NA NA 05/10/12 Things Remembered, Inc. eCommerce Madison Dearborn Partners, Inc. 295.0 NA NA 05/30/12 Leader Participacoes Retail BTG Pactual Participations 281.0 NA NA 11/08/12 The Sportsman’s Guide and The Golf Warehouse Catalog Northern Tool & Equipment 215.0 NA NA 05/17/13 SkyMall, Inc. Catalog Xhibit Corp. 177.8 NA NA 08/07/12 Triad Catalog Company Catalog Brentwood Associates 175.0 NA NA 07/16/12 Sundance Catalog Company, Inc. Catalog Brentwood Associates 125.0 1.3x 8.9x Investments Date Target Segment Investor Deal Value EV/Revenue EV/EBITDA 01/29/13 Netflix, Inc. eCommerce (Institutional Buyers) 500.0 2.5x 94.0x 02/19/13 Beijing Jingdong Century Trading Co., Ltd. eCommerce Kingdom Holding Company 400.0 NA NA 07/14/12 360buy.com eCommerce Ontario Teachers' Pension Plan 400.0 NA NA 12/11/12 TripAdvisor, Inc. Comparison Shopping Liberty Interactive Group 300.0 0.4x 1.0x 08/07/12 ShSchus termann & BtiBorenstein Who lesa le AXA PiPriva te EitEquity 248. 0 NA NA 08/28/12 Flipkart Online Services Private Limited eCommerce MIH Group 150.0 NA NA 07/18/12 fab.com eCommerce Atomico Ventures 105.0 0.8x NA 05/22/13 Zalora Co. Ltd. eCommerce Rocket Internet 100.0 NA NA 11/16/12 Zulily, Inc. eCommerce Andreessen Horowitz 85.0 2.0x NA 04/09/13 Acumen Brands, Inc eCommerce General Atlantic, LLC 83.0 NA NA 07///26/12 JustFabulous eCommerce Rho Capital Partners, Inc.