Financial Technology Sector Summary Week of June 19, 2017 1 DEAL DASHBOARD Financial Technology (3) (1) (3) $11.7 Bn | 1,179 Deals Industry Stock Market Performance $77.6 Bn | 683 Deals LTM Financing Volume Last Twelve Months LTM M&A Volume 160 Select Recent Financing Transactions Select Recent M&A Transactions Company Amount ($MM) 150 Target Acquirer EV ($MM) 140 $300.0 $1,381.0 130 $145.5 $304.0 120 $140.0 110 $89.0 100 $65.0 $33.0 90 $28.0 NA 80 6/16/16 8/1/16 9/14/16 10/28/16 12/13/16 1/26/17 3/13/17 4/26/17 6/9/17 $22.5 NA Payments Exchanges Financial Data, Content, Information Processors / $12.0 & Analytics Credit Bureaus NA Banking & Lending Online Broker Dealers Technology $12.0 NA Investment Services, Healthcare / Insurance Software, & Technology Technology S&P 500 (3) (3) Quarterly Financing Volume Quarterly M&A Volume $10 500 $30 219 250 205 196 188 $8 $8.9 400 $25 200 $24.9 299 298 316 $24.5 276 $20 $6 300 $20.8 $20.4 150 $15 $4 200 100 $10 $3.0 $2 $2.6 $2.6 100 $5 50 $0 0 $0 0 Q2 2016 Q3 2016 Q4 2016 Q1 2017 Q2 2016 Q3 2016 Q4 2016 Q1 2017 Financing Volume ($Bn) Financing Deal Count M&A Volume ($Bn) M&A Deal Count Notes: Source: Capital IQ, CB Insights and GCA FinTech Database. Market Data as of 6/16/17. 1) Refer to footnotes on page 5 for index composition. 2 2) Represents transactions announced between 6/5/17 and 6/19/17. 3) Deal counts include transactions with undisclosed funding amounts and enterprise values for financing and M&A transactions respectively. GCA OVERVIEW Financial Technology Team San Francisco New York London Tokyo th 1 Southampton St. 11-1 Marunouchi 1-chome One Maritime Plaza, 25th Fl. 640 Fifth Avenue, 10 Fl. London WC2R0LR Chiyoda-ku, Tokyo 100-6230 San Francisco, CA 94111 New York, NY 10019 United Kingdom Japan (415) 318-3600 (212) 999-7090 +44 20 7484 4040 +81 (3) 6212-7100 Sean Minnihan Peter Bang Derek Bell Paul DiNardo Steve Fletcher Rob Freiman Managing Director Managing Director Managing Director Managing Director Managing Director Director Global Head of FinTech Phone: (212) 999-7077 Phone: (212) 999-7074 Phone: (212) 999-7089 Phone: (212) 999-7097 Phone: (415) 318-3661 Phone: (212) 999-7075 Mobile: (917) 364-6230 Mobile: (917) 783-4057 Mobile: (914) 953-0689 Mobile: (650) 483-7246 Mobile: (415) 518-6725 Mobile: (973) 229-0436 [email protected] [email protected] [email protected] [email protected] [email protected] [email protected] Glen Kruger Michio Suzuki* David Krueger Saif Malik* Alexander Berry Malik Gill Director Director Vice President Vice President Associate Analyst Phone: (212) 999-7082 Phone: +81 3-6212-7145 Phone: (212) 537-4534 Phone: +44 (0) 207 038-3216 Phone: (212) 999-7079 Phone: (212) 537-4529 Mobile: (617) 792-6496 Mobile: +81 90-7412-9411 Mobile: (616) 822-7179 Mobile: +44 (0) 778 606-8553 Mobile: (818) 851-2300 Mobile: (646) 668-6714 [email protected] [email protected] [email protected] [email protected] [email protected] [email protected] * Saif Malik is a Vice President at GCA Savvian Europe Limited * Michio Suzuki is a Director at GCA Corporation 3 SECTION I: Market Summary 4 MARKET SUMMARY Industry Stock Market Performance 160 Last 12 Months 170 Last 3 Years 160 150 150 140 140 130 130 120 120 110 110 100 100 90 90 80 80 6/16/16 8/1/16 9/14/16 10/28/16 12/13/16 1/26/17 3/13/17 4/26/17 6/9/17 6/16/14 10/2/14 1/20/15 5/8/15 8/26/15 12/14/15 3/31/16 7/19/16 11/4/16 2/22/17 6/12/17 (1) (2) Indexed Price Performance Payments Exchanges Sector 3 Months 1 Year 3 Years (3) (4) Banking & Lending Technology 8.1% 23.2% 61.6% Financial Data, Content, Information Processors / Healthcare / Insurance Technology 6.9% 7.7% 36.1% & Analytics Credit Bureaus Payments 6.2% 25.0% 36.5% Financial, Data, Content, & Analytics 5.4% 20.8% 3.6% (6) (5) Banking & Lending Online Broker Dealers Exchanges 5.2% 24.4% 42.6% Technology Investment Services, Software, & Technology 3.9% 18.1% 47.3% Information Processors / Credit Bureaus 2.4% 18.0% 49.0% (7) (8) Online Broker Dealers (1.8%) 43.9% 53.4% Investment Services, Healthcare / Insurance Software, & Technology Technology Notes: (1) Payments: ADS, AIM:SCH, ASX:PPT, AXP, BGC, BOVESPA:CIEL3, CATM, DFS, EEFT, ENXTPA:EDEN, FDC, FLT, GDOT, GPN, MA, PAR, PYPL, SHOP, SQ, TSE:3769, TSS, UEPS, V, VNTV, WEX, WPG, WU, XTRA:WDI. (2) Exchanges: ASX:ASX, ATSE:EXAE, BME:BME, BMV:BOLSA A, BOVESPA:BVMF3, CBOE, CME, ICE, JSE:JSE, KLSE:BURSA, LSE, NDAQ, SEHK:388, SGX:S68, TSX:X, WSE:GPW, XTRA:DB1. (3) Financial Data, Content & Analytics: DNB, ENXTPA:FIM, FDS, HOSE:HHS, MCO, MORN, MSCI, RATE, SPGI, TRI. (4) Information Processors / Credit Bureaus: ACXM, EFX, FICO, INTX, LSE: EXPN. (5) Online Broker Dealers: AMTD, ETFC, GCAP, GLBR, IBKR, SCHW. (6) Banking & Lending Technology: ACIW, BKFS, ELLI, ELVT, EPAY, FIS, FISV, INTU, JKHY, LC, ONDK, PFMT, QTWO, SWX: TEMN. 5 (7) Investment Services, Software, & Technology: BR, DST, ENV, FNGN, LSE:ALFA, SEIC, SSNC. (8) Healthcare / Insurance Technology: ATHN, CRD.B, DAR:CRDB, EBIX, GWRE, MJSO, SPNS, BSE:532254, SY, VRSK. MARKET SUMMARY EBITDA Multiples and Margins 2017E EBITDA Multiples 2017 EBITDA Margins Healthcare / Insurance Technology 17.9x Exchanges 58.8% Information Processors / Credit Bureaus 15.2x Online Broker Dealers 46.1% Financial Data, Content, & Analytics 14.5x Financial Data, Content, & Analytics 39.3% Investment Services, Software, & 14.4x Banking and Lending Technology 32.9% Technology Banking and Lending Technology 14.2x Information Processors / Credit Bureaus 30.6% Investment Services, Software, & Exchanges 13.7x 26.7% Technology Payments 12.5x Payments 25.6% Online Broker Dealers 9.8x Healthcare / Insurance Technology 16.4% 0.0x 5.0x 10.0x 15.0x 20.0x 0% 10% 20% 30% 40% 50% 60% 70% Notes: 6 Numbers represent medians of sub-sectors. Details available in later pages. MARKET SUMMARY Price / Earnings Multiples and PEG Ratios 2017E Price / Earnings Multiples 2017E PE / Growth (“PEG” Ratio) | Long-Term EPS Growth Banking and Lending Technology 29.6x Healthcare / Insurance Technology 2.5 14.2% Healthcare / Insurance Technology 28.9x Exchanges 2.1 10.6% Online Broker Dealers 26.2x Banking and Lending Technology 2.1 15.5% Information Processors / Credit Bureaus 24.9x Financial Data, Content, & Analytics 2.1 Investment Services, Software, & 23.4x Information Processors / Credit Bureaus 2.1 13.8% Technology Investment Services, Software, & Financial Data, Content, & Analytics 23.0x 1.5 16.0% Technology Exchanges 21.6x Payments 1.3 14.5% Payments 17.8x Online Broker Dealers 1.3 17.4% 0.0x 5.0x 10.0x 15.0x 20.0x 25.0x 30.0x 35.0x 0.0 0.5 1.0 1.5 2.0 2.5 3.0 Notes: 7 Numbers represent medians of sub-sectors. Details available in later pages. MARKET SUMMARY LTM Price Performance and 2017 P/E – Payments / Banking ($MM) ($MM) LTM Price LTM Price Networks Market Cap. Performance P/E 2017 Prepaid Market Cap. Performance P/E 2017 Visa Inc. $217,125 20% 27.0x Blackhawk Network Holdings, Inc. $2,321 24% 25.0x Mastercard Incorporated $130,726 30% 28.3x Green Dot Corporation $2,027 81% 20.3x American Express Company $72,798 32% 14.3x Net 1 UEPS Technologies, Inc. $557 (2%) 5.5x PayPal Holdings, Inc. $62,273 40% 29.1x Sector Average $1,635 34% 16.9x Discover Financial Services $23,230 16% 10.1x Sector Average $101,230 28% 21.8x LTM Price Integrated Payments Hardware / Technology Market Cap. Performance P/E 2017 LTM Price Ingenico Group - GCS $5,683 (13%) 17.3x Merchant Processing Market Cap. Performance P/E 2017 NCR Corporation $4,820 37% 11.8x Cielo S.A. $19,633 (9%) 15.0x VeriFone Systems, Inc. $1,927 (9%) 11.8x First Data Corporation $16,653 54% 11.8x Cardtronics plc $1,522 (16%) 11.7x Global Payments Inc. $13,655 20% 22.9x Everi Holdings Inc. $467 365% 6.9x Vantiv, Inc. $11,888 14% 18.5x PAR Technology Corporation $136 81% NA Total System Services, Inc. $10,849 13% 18.2x Sector Average $2,426 74% 11.9x Square, Inc. $8,814 160% NM Wirecard AG $8,336 58% 27.9x LTM Price Worldpay Group plc $8,220 11% 23.9x Banking and Lending Technology Market Cap. Performance P/E 2017 GMO Payment Gateway, Inc. $2,115 9% 75.1x EVERTEC, Inc. $1,208 6% 10.2x Intuit Inc. $35,740 31% 30.6x SafeCharge International Group Limited $496 7% 15.5x Fidelity National Information Services, Inc. $28,162 15% 20.1x Planet Payment, Inc. $177 (16%) 19.6x Fiserv, Inc. $26,473 17% 24.3x JetPay Corporation $33 (16%) NM Jack Henry & Associates, Inc. $8,137 25% 32.3x Sector Average $7,852 24% 23.5x Temenos Group AG $6,278 63% 37.4x Ellie Mae, Inc. $3,790 30% 59.7x Black Knight Financial Services, Inc. $2,713 13% 28.7x LTM Price ACI Worldwide, Inc. $2,631 6% 47.7x Money Transfer Market Cap. Performance P/E 2017 LendingClub Corporation $2,266 13% NM The Western Union Company $8,992 1% 11.4x Q2 Holdings, Inc.