Travel & Hospitality POS Software Mergers & Acquisitions Monthly Industry Update Travel & Hospitality June 10, 2013 The US Point of Sale Software market generated an estimated $1.2 billion in 2012 revenues and is projected to grow to $1.4 billion annually by 2017, POS Software industry consolidation of recent years is expected to continue while boosting industry-wide profitability. POS Software most notably serves: Retail (inventory tracking); Hospitality (reservation and facilities management); Foodservices (reservation and facilities management ; inventory tracking), and Wholesaling (inventory tracking). Key industry drivers include: demand from accommodation and food services sectors, including fast food restaurants; demand from retail sector for POS software developers; numbers and profitability of businesses, and private investments in computers and software. Recessions slow growth on two fronts: reducing per capita disposable income while causing businesses to shutter locations. Retail POS Software supports POS terminals incorporating computers, monitors, cash drawers, receipt printers, barcode scanners and payment card readers. Touch screen and self-service kiosk technologies are increasingly prevalent. Key players include: Micros Systems, Epicor, JDA Software, Oracle (360 Commerce), and SAP (Triversity). Hospitality POS Software often is customized to support a variety of property management functions (labor & inventory management, consumer-based reservation systems, etc.). Large hotel and motel chains’ internally-developed POS systems and alternative software packages often are key competitors. Key players include: Agilysys, Micros Systems, Par Technology, Multi-Systems, Newmarket, Northwind, Protel, Softbrands, and multinational hotel chains’ internally-developed platforms. Foodservice POS Software is revolutionizing foodservice by decreasing service times and increasing order efficiencies. Recent innovations include wireless POS technologies and the integration of tablet computers into high-volume restaurants to facilitate real-time aggregation and dissemination of kitchen and bar orders. Key players include NCR Corporation, Par Technology, Agilysys, Casio, Dell, HP, IBM, Toshiba, Panasonic, Sharp and Positouch. POS bundled solutions increasingly incorporate Software-as-a-Service (SaaS) within their platforms to achieve real-time, Cloud-based functionality as regards sales transactions, inventory control, reporting and customer data management. Mobile/Cloud computing is making POS software accessible across computers, smart phones, tablets, etc. via Square, Intuit’s GoPayments and NCR’s Silver. Source: Public Filings; Capital IQ as of 6/7/13 2 Industry Snapshot: Travel & Hospitality June 10, 2013 Notable M&A Activity Capital Markets . NetSuite acquired Retail Anywhere in January 2013. NetSuite is an industry-leading vendor of 1 Week 4 Weeks YTD 52 Weeks cloud-based financials/ERP software suites. Retail Travel & Hospitality Software Index 1.22% 4.54% 17.43% 35.98% Anywhere is a leading provider of multi-channel Software-as-a-Service Index -3.56% -5.82% -0.15% 13.38% retail management solutions designed to improve S&P 500 0.77% 0.59% 12.37% 25.55% the retail customer experience. Vista Equity Partners acquired Lanyon in January 2013. Vista is a US-based private equity firm with offices in San Francisco, CA, Chicago, IL, and Austin, TX and more than $6.6 billion in capital committed to dynamic, successful technology-based organizations. Lanyon is the hospitality industry’s leading provider of SaaS-based software solutions for the hospitality industry. NCR Corporation acquired Retalix Ltd. in a transaction valued at $650 million in cash. The acquisition, announced in November 2012, closed in the spring of 2013. The transaction reflected NCR’s commitment to migrate to a hardware- enabled, software-driven business model capable of generating improved business operations and increased customer satisfaction. NCR’s Retalix acquisition enables the company to shift toward higher-margin software and provide better value-added services to customers. Retalix’s software and services are deployed in more than 70,000 retail locations delivering 400,000 customer touch points in more than 50 countries, tracking billions of dollars in annual sales across its platform. Fourth Hospitality acquired Adaco in September 2012. Fourth Hospitality is a global SaaS provider of labor, payroll, inventory and procurement systems for restaurants and bars; contract catering and leisure markets. Adaco is the leading supplier of SaaS-based purchasing and inventory control solutions to the hotel sector in the US and worldwide. Adaco has more than 400 customers in 54 countries and a 27-year corporate history. The combined companies will have nearly 250 employees and unprecedented access to resources in development and customer support. Fourth Hospitality is an ECI Partners company. Source: Public Filings; Capital IQ as of 6/7/13 3 Industry Snapshot: Travel & Hospitality June 10, 2013 Travel & Quarter Ending Consensus Consensus Actual Actual EPS Difference vs. Difference vs. Hospitality ($ Revenue EPS Revenue Estimated Estimated EPS Millions except Revenue EPS) 12/31/2012 $53.5 $0.05 $67.2 $0.02 25.7% -52.9% 3/31/2012 $1,025.4 $0.49 $1,018.6 $0.47 -0.7% -3.5% 3/31/2012 $680.9 $0.23 $633.5 -$0.21 -7.0% -191.8% 3/31/2012 $102.6 $0.20 $113.7 -$0.35 10.8% -270.4% 3/31/2012 $328.9 $0.61 $315.1 $0.56 -4.2% -7.8% 3/31/2012 $1,340.0 $0.43 $1,410.0 $0.38 5.2% -10.9% 3/31/2012 $45.6 $0.43 $45.5 $0.31 -0.1% -27.4% 3/31/2012 $57.6 $0.05 $66.7 -$0.02 15.8% -148.7% 3/31/2012 $88.9 $0.13 $89.0 $0.01 0.1% -89.6% 3/31/2012 $760.4 $0.86 $764.7 $0.74 0.6% -13.9% Source: Public Filings; Capital IQ as of 6/7/13 4 Industry Snapshot: SaaS Software June 10, 2013 SaaS Quarter Consensus Consensus Actual Actual EPS Difference vs. Difference vs. Software Ending Revenue EPS Revenue Estimated Estimated ($ Millions except Revenue EPS EPS) 3/31/2012 $127.7 $0.16 $127.4 -$0.14 -0.3% -187.2% 3/31/2012 $202.1 $0.31 $214.3 $0.17 6.0% -46.7% 3/31/2012 $52.5 $0.02 $55.0 -$0.08 4.7% -618.4% 3/31/2012 $44.1 $0.05 $48.5 $0.03 10.1% -36.0% 4/30/2012 $887.1 $0.10 $892.6 -$0.12 0.6% -210.3% 3/3/2012 $242.4 $0.18 $237.8 $0.06 -1.9% -67.6% 3/31/2012 $97.9 $0.26 $97.9 $0.16 0.0% -36.6% Source: Public Filings; Industry Newswires and Capital IQ as of 6/7/13 5 Capital Markets: Last 52 Weeks’ Index Performances June 10, 2013 50.00% 40.00% T&H Index +35.98% 30.00% 20.00% S&P 500 Index +25.55% 10.00% SaaS Index +13.38% 0.00% -10.00% -20.00% S&P 500 Index (^SPX) - Index Value Travel & Hospitality Software Index Software-as-a-Service Index Source: Public Filings; Capital IQ as of 6/7/13 6 Capital Markets: Stock Performance June 10, 2013 Data as of Market Close Friday, June 07, 2013 Last 4 Weeks Last 52 Weeks Responsys 23.1% Agilysys 74.5% Digital River 18.7% Amadeus IT Holding 63.2% NCR 13.4% NCR 61.7% OpenTable 9.0% OpenTable 60.5% Agilysys 8.0% Wincor Nixdorf 57.1% Diebold 4.8% Ultimate Software 35.1% Wincor Nixdorf 4.4% IntraLinks 34.4% Informatica 3.5% Concur Technologies 25.2% Amadeus IT Holding 3.4% S&P 500 24.0% TIBCO Software 1.3% salesforce.com 16.1% Ultimate Software 1.3% Digital River 12.9% IntraLinks 0.8% Responsys 4.4% S&P 500 0.6% RealPage 0.7% MICROS 0.3% Diebold -13.8% PAR Technology -0.3% Informatica -13.9% Concur Technologies -1.5% MICROS -15.5% salesforce.com -10.3% PAR Technology -20.7% RealPage -13.8% TIBCO Software -21.1% (20%) (15%) (10%) (5%) 0% 5% 10% 15% 20% 25% 30% (40%) (20%) 0% 20% 40% 60% 80% Index SaaS Travel & Hospitality Softw are Source: Public Filings; Capital IQ as of 6/7/13 7 Travel & Hospitality: 4 Week and 52 Week Stock Performances June 10, 2013 % 52 Week 4 Week 52 Week Company 6/7/13 Close High Change Change Comments Diebold reaffirmed flat revenue and flat to moderately down EPS for FY 2013 and $12.67 99.1% 8.01% 74.52% announced a first quarter dividend increase to28.75 cents per share paid March 8, 2013. MICROS reaffirmed FY2013 guidance in line with projections provided in August $31.16 97.1% 1.36% 54.16% 2012: upwards of $1.325 billion in revenues and $2.44 in Non-GAAP Amadeus signed a new long-term content agreement with International Airlines $32.16 83.6% 4.79% 13.83% Group, one of the world’s largest such groups. It also acquired the CRM and loyalty solutions division of Turkey- Agilysys raised its FY 2013 guidance to upwards of $232 million in revenues, $6.5 $17.70 99.2% 18.71% 12.88% million in adjusted operating income, and $0.26 in adjusted, PAR Technology CEO and president Paul B. Domorski announced his resignation $43.57 81.6% 3.06% 15.50% from the company and its board and was replaced in those positions by former CFO Ronald J. Casciano. Wincor Nixdorf enhanced its PC/E Mobile Cash app for iPhone and Android platforms $49.64 99.9% 0.30% 61.69% to enable bank customers to withdraw cash from ATMs using smart phones. It also announced plans t Source: Capital IQ 6/7/2013 8 The S&P and other major US stock market S&P 500 $1,643.38 0.59% 23.97% indices continue to set records at this time.