Software Sector Summary Week of November 28th, 2016 1 SOFTWARE DEAL DASHBOARD $28.9 Billion 408 $104.7 Billion 80 Financing Volume YTD (1)(2) Financing Transactions YTD (1)(2) M&A Volume YTD (3) M&A Transactions YTD (3) Select Financing Transactions Quarterly Financing Volume (1)(2) Quarterly M&A Volume (3) Top M&A Transactions YTD Company Amount ($MM) $Bn $Bn Target Acquirer EV ($Bn) $12 $60 $10 $50 $10 $9 $50 $70.0 $42 $26.2 $8 $40 $6 $6 $6 $5 $30 $42.5 $4 $4 $24 $9.2 $4 $3 $20 $14 $14 $2 $10 $5 $7 $6 $39.0 $0 $0 $8.7 Q1'15Q2'15Q3'15Q4'15Q1'16Q2'16Q3'16 Q4'16 Q1'15Q2'15Q3'15Q4'15Q1'16Q2'16Q3'16Q4'16 (Software Business Division) TD TD $33.1 Quarterly Financing Deal Count (1)(2) Quarterly M&A Deal Count (3) $6.1 $24.8 140 127 40 $4.7 118 ( ) 120 111 103 29 30 27 100 86 94 24 $23.6 76 24 $3.3 80 72 20 60 15 13 12 40 $20.0 10 7 $2.8 20 0 0 $20.0 Q1'15Q2'15Q3'15Q4'15Q1'16Q2'16Q3'16 Q4'16 Q1'15 Q2'15 Q3'15 Q4'15 Q1'16 Q2'16 Q3'16 Q4'16 $2.4 TD TD Last 12 Months Software Price Performance vs. S&P 500 (4) M&A EV/ NTM Rev. Over Time (5) 10% 8% ` 5% 6% 0% (5%) (10%) (15%) (20%) (25%) IGV SPX Notes: Source: Capital IQ, PitchBook, and Dow Jones VentureSource. Market Data as of 11/25/16. 1) Criteria based on software series A and subsequent rounds of global financings greater than or equal to $20MM. Excludes the $7.3Bn raise by Didi Chuxing on 6/15/2016. 2) Financings include Software Venture and Private Equity Growth / Expansion activity. 2 3) Criteria based on global target software M&A deals with transaction enterprise values greater than $50MM. 4) 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. 5) Criteria based on global public target software M&A deals with enterprise transaction values greater than $100MM. RECENT STOCK PERFORMANCE Index Performance Last 12 Months Last 3 Years 20% 60% 50% 10% 40% 0% 30% Nov-15 Dec-15 Jan-16 Feb-16 Mar-16 Apr-16 May-16 Jun-16 Jul-16 Aug-16 Sep-16 Oct-16 Nov-16 20% (10%) 10% (20%) 0% Nov-13 Feb-14 May-14 Aug-14 Nov-14 Feb-15 May-15 Aug-15 Nov-15 Feb-16 May-16 Aug-16 Nov-16 (10%) (30%) (20%) (40%) (30%) (40%) (50%) Sector 3 Months 1 Year 3 Years Platform 1% 7% 33% Infrastructure 4% 15% 18% Security (0%) (6%) 22% SaaS / On Demand (1%) 2% 30% BI & Analytics (8%) (15%) (12%) Vertical (6%) (3%) 5% Notes: Source: Capital IQ. Market Data as of 11/25/16. BI & Analytics: ATTU, DATA, DWCH, FICO, GSUM, HDP, MSTR, SPLK, TDC, VRNT. Infrastructure: ATEN, CA, CTXS, CVLT, FFIV, LOGM, MCRO, NEWR, NOW, NTCT, NTNX, PRGS, PSTG, RHT, SOW, SPLK, TEAM, VMW. Platform: GOOGL, IBM, MSFT, ORCL, RHT, SAP. SaaS / On Demand: AMBR, APTI, AZPN, BCOV, BLKB, BNFT, BOX, BV, CALD, CARB, COUP, COVS, CRM, CSLT, CSOD, ECOM, FIVN, HUBS, IL, INST, JCOM, JIVE, LOGM, LPSN, MIME, MRIN, NEWR, NOW, PAYC, PCTY, PCYG, QLYS, RNG, RP, SHOP, SPSC, TNGO, TWOU, ULTI, VEEV, WDAY, WK, ZEN. 3 Security: ABT, CHKP, CUDA, CYBR, FEYE, FSC1V, FTNT, GUID, IMPV, IPAS, MIME, MOBL, PANW, PFPT, QLYS, RPD, SCWX, SPLK, SYMC, Trend Micro, VDSI, ZIXI. Vertical: APPF, ATHN, BLKB, CERN, CLGX, CSLT, CSU, EXA, GWRE, HSTM, INOV, INST, MDRX, MDSO, RP, SSNC, SSNI, VEEV, WBMD. TRADING COMPARABLES Valuation Metrics EV / 2016E Revenue EV / 2016E EBITDA 35.0x 6.0x 31.7x 5.3x 5.0x 29.0x 30.0x 28.3x 5.0x 4.6x 4.4x 4.2x 24.4x 25.0x 22.0x 4.0x 3.5x 20.0x 3.0x 15.0x 13.3x 2.0x 10.0x 1.0x 5.0x 0.0x 0.0x SaaS / On Infrastructure Vertical Platform Security BI & Analytics SaaS / On BI & Analytics Security Infrastructure Vertical Platform Demand Demand Notes: Source: Capital IQ. Market Data as of 11/25/16. BI & Analytics: ATTU, DATA, DWCH, FICO, GSUM, HDP, MSTR, SPLK, TDC, VRNT. Infrastructure: ATEN, CA, CTXS, CVLT, FFIV, LOGM, MCRO, NEWR, NOW, NTCT, NTNX, PRGS, PSTG, RHT, SOW, SPLK, TEAM, VMW. Platform: GOOGL, IBM, MSFT, ORCL, RHT, SAP. SaaS / On Demand: AMBR, APTI, AZPN, BCOV, BLKB, BNFT, BOX, BV, CALD, CARB, COUP, COVS, CRM, CSLT, CSOD, ECOM, FIVN, HUBS, IL, INST, JCOM, JIVE, LOGM, LPSN, MIME, MRIN, NEWR, NOW, PAYC, PCTY, PCYG, QLYS, RNG, RP, SHOP, SPSC, TNGO, TWOU, ULTI, VEEV, WDAY, WK, ZEN. 4 Security: ABT, CHKP, CUDA, CYBR, FEYE, FSC1V, FTNT, GUID, IMPV, IPAS, MIME, MOBL, PANW, PFPT, QLYS, RPD, SCWX, SPLK, SYMC, Trend Micro, VDSI, ZIXI. Vertical: APPF, ATHN, BLKB, CERN, CLGX, CSLT, CSU, EXA, GWRE, HSTM, INOV, INST, MDRX, MDSO, RP, SSNC, SSNI, VEEV, WBMD. TRADING COMPARABLES Operational Metrics 2017 / 2016 Rev. Growth 2016 EBITDA Margin 20% 19% 40% 34% 18% 35% 16% 15% 16% 15% 14% 30% 27% 14% 25% 22% 12% 21% 10% 20% 17% 16% 7% 8% 15% 6% 10% 4% 2% 5% 0% 0% SaaS / On Security BI & Analytics Vertical Infrastructure Platform Platform Infrastructure Vertical Security BI & Analytics SaaS / On Demand Demand Notes: Source: Capital IQ. Market Data as of 11/25/16. BI & Analytics: ATTU, DATA, DWCH, FICO, GSUM, HDP, MSTR, SPLK, TDC, VRNT. Infrastructure: ATEN, CA, CTXS, CVLT, FFIV, LOGM, MCRO, NEWR, NOW, NTCT, NTNX, PRGS, PSTG, RHT, SOW, SPLK, TEAM, VMW. Platform: GOOGL, IBM, MSFT, ORCL, RHT, SAP. SaaS / On Demand: AMBR, APTI, AZPN, BCOV, BLKB, BNFT, BOX, BV, CALD, CARB, COUP, COVS, CRM, CSLT, CSOD, ECOM, FIVN, HUBS, IL, INST, JCOM, JIVE, LOGM, LPSN, MIME, MRIN, NEWR, NOW, PAYC, PCTY, PCYG, QLYS, RNG, RP, SHOP, SPSC, TNGO, TWOU, ULTI, VEEV, WDAY, WK, ZEN. 5 Security: ABT, CHKP, CUDA, CYBR, FEYE, FSC1V, FTNT, GUID, IMPV, IPAS, MIME, MOBL, PANW, PFPT, QLYS, RPD, SCWX, SPLK, SYMC, Trend Micro, VDSI, ZIXI. Vertical: APPF, ATHN, BLKB, CERN, CLGX, CSLT, CSU, 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 Aggregate AV / Revenue AV / EBITDA Price / EPS CY Rev. Growth EBITDA Margin 11/25/2016 Value Debt Value CY 16E CY 17E CY 16E CY 17E CY 16E CY 17E 16E/15A 17E/16E CY 16E CY 17E Platform Alphabet Inc. $780.23 $537,766 ($79,118) $458,648 5.1x 4.4x 12.8x 10.9x 22.5x 19.0x 19.0% 15.8% 40.2% 40.6% Microsoft Corporation $60.53 470,642 (60,857) 409,785 4.4 4.3 11.7 11.0 21.2 19.9 4.8% 4.2% 38.0% 38.8% Oracle Corporation $40.27 165,334 (14,340) 150,994 4.0 4.0 9.1 8.6 15.4 14.7 (0.2%) 2.1% 44.5% 45.8% International Business Machines Corporation $163.14 155,122 32,515 187,637 2.4 2.4 9.9 9.1 12.1 11.7 (2.4%) (0.3%) 23.7% 25.9% SAP SE $85.43 102,358 2,962 105,320 4.5 4.2 13.3 12.4 21.2 18.9 3.3% 6.5% 34.0% 34.3% Red Hat, Inc. $78.81 14,154 (601) 13,553 5.8 5.1 23.2 19.1 36.7 31.2 18.1% 15.1% 25.1% 26.4% Mean 4.4x 4.0x 13.3x 11.9x 21.5x 19.2x 7.1% 7.2% 34.3% 35.3% Median 4.5 4.2 12.2 11.0 21.2 18.9 4.0% 5.4% 36.0% 36.5% Infrastructure VMware, Inc. $79.80 $32,843 ($6,754) $26,089 3.7x 3.5x 10.3x 9.6x 18.3x 17.0x 6.1% 5.3% 36.0% 36.7% ServiceNow, Inc. $87.74 14,566 (308) 14,258 10.3 7.9 54.1 36.6 NM 83.7 37.7% 30.1% 19.1% 21.6% Red Hat, Inc. $78.81 14,154 (601) 13,553 5.8 5.1 23.2 19.1 36.7 31.2 18.1% 15.1% 25.1% 26.4% Citrix Systems, Inc. $88.31 13,773 (324) 13,449 3.9 4.0 11.3 11.1 17.0 16.5 4.1% (0.3%) 34.8% 35.7% CA, Inc. $31.78 13,279 (496) 12,783 3.2 3.1 7.9 7.9 12.6 12.4 0.0% 0.9% 40.0% 39.5% F5 Networks, Inc. $144.12 9,414 (882) 8,532 4.2 3.9 10.7 10.1 19.1 17.0 3.9% 8.3% 39.4% 38.5% Splunk Inc. $58.33 7,848 (1,021) 6,827 7.5 5.8 83.4 52.7 NM NM 36.9% 28.2% 8.9% 11.0% Atlassian Corporation Plc $27.42 6,037 (754) 5,283 10.0 7.7 48.1 36.6 83.1 72.4 35.9% 29.7% 20.9% 21.2% Micro Focus International plc $26.14 5,994 1,078 7,072 5.2 5.0 11.2 9.7 15.8 14.6 9.3% 3.8% 46.6% 52.1% Nutanix, Inc.