SOFTWARE SECTOR REPORT January 2018 DEAL DASHBOARD Software $5.8 Billion 50 $3.7 Billion 5 YTD 2018 Financing Volume (1)(2) YTD 2018 Financing Transactions (1)(2) YTD 2018 M&A Volume (3) YTD 2018 M&A Transactions (3) Select Financing Transactions Quarterly Financing Volume (1)(2) Quarterly M&A Volume (3) Select M&A Transactions (4) Company Amount ($MM) $Bn $Bn (62%) Target Acquirer EV ($MM) 54% $14 $50 $12 $12 $263 $10 $11 $41 $3,903 $9 $6 $6 $100 $5 $15 $2,334 $12 $12 $13 $6 $5 $4 $75 $1,917 Q1'16 Q2'16 Q3'16 Q4'16 Q1'17 Q2'17 Q3'17 Q4'17 Q1'18 Q1'16 Q2'16 Q3'16 Q4'16 Q1'17 Q2'17 Q3'17 Q4'17 Q1'18 TD TD $65 $1,235 Quarterly Financing Deal Count (1)(2) Quarterly M&A Deal Count (3) $58 40% $1,125 156 160 159 161 2% ( ) 127 123 111 29 29 30 $47 94 25 $713 24 21 22 50 14 $38 5 $614 $35 Q1'16 Q2'16 Q3'16 Q4'16 Q1'17 Q2'17 Q3'17 Q4'17 Q1'18 Q1'16 Q2'16 Q3'16 Q4'16 Q1'17 Q2'17 Q3'17 Q4'17 Q1'18 $459 TD TD Last 12 Months Software Price Performance vs. S&P 500 (5) M&A EV/ NTM Rev. Over Time (6) 50.0% SPX IGV 46% All Buyers Strategic Buyers PE Buyers 45.0% 6.0x ` Financing Activity by Quarter 40.0% 5.3x 4.9x 35.0% 5.0x 4.6x 4.5x 4.6x 4.2x 4.3x 4.0x 4.1x 30.0% 3.9x 3.9x 4.0x 3.6x 3.7x 3.7x 3.3x 25.0% 24% 3.1x 2.9x 2.9x 2.8x 3.0x 2.7x 20.0% 2.2x 15.0% 2.0x 10.0% 1.0x 5.0% 0.0% 0.0x Feb-17 Mar-17 Apr-17 May-17 Jun-17 Jul-17 Aug-17 Sep-17 Oct-17 Nov-17 Dec-17 Jan-18 Feb-18 2011 2012 2013 2014 2015 2016 2017 Notes: Sources: Capital IQ, PitchBook, and Dow Jones VentureSource. Market Data as of 2/1/2018. 1) Criteria based on software series A and subsequent rounds of global financings greater than or equal to $20MM. 2) Financings include Software Venture and Private Equity Growth / Expansion activity. 3) Criteria based on global target software M&A deals with transaction enterprise values greater than $50MM. 4) Software M&A transactions reflect select transactions in 2017 and 2018 YTD. M&A metrics are based on closed and announced transactions. 2 5) 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. 6) Criteria based on global public target software M&A deals with enterprise transaction values greater than $100MM. GCA OVERVIEW The GCA Software Team US Team Daniel Avrutsky Jimmy Orozco Josh Wepman Paul DiNardo Steve Fletcher Managing Director Managing Director Managing Director Managing Director Managing Director [email protected] [email protected] Software & Digital Media [email protected] Head of Software [email protected] [email protected] Gautam Garg Glen Kruger Mike Janovec Vice President Director Vice President [email protected] [email protected] [email protected] Alex Vitale Arthur Kirsch Chris Gough Derek Bell Managing Director Managing Director Managing Director Managing Director Auto Tech Healthcare IT Real Estate Tech Business Services [email protected] [email protected] [email protected] [email protected] John Lambros JT Herman Sean Minnihan Managing Director Managing Director Managing Director Head of Digital Media Industrial Technology FinTech [email protected] [email protected] Financial Software [email protected] Executive Leadership Select Europe Team Select Asia Team Todd Carter *Adrian Reed *Phil Adams **Raiko Stelten ***Akikazu Ida ***Ryuichi Kanemaki Co-President & CEO Managing Director CEO of GCA Altium Director Co-Head of Asian Managing Director [email protected] [email protected] [email protected] [email protected] Technology & Media [email protected] [email protected] Clark Callander **Sascha Pfeiffer *Stephen Georgiadis **Tobias Schultheiss Sameer Jindal ***Tomohiko Kubota Managing Director Co-Head of European Managing Director Managing Director Managing Director Managing Director Head of Investment Banking Technology & Media [email protected] [email protected] Head of Indian Operations CEO of AMPLIA [email protected] [email protected] [email protected] [email protected] *Adrian Reed, Phil Adams and Stephen Georgiadis are Managing Directors at GCA Altium Limited, a wholly-owned subsidiary of GCA Corporation. **Raiko Stelten, Sascha Pfeiffer and Tobias Schultheiss are Managing Directors at GCA Altium AG, a wholly-owned subsidiary of GCA Corporation. 3 ***Akikazu Ida, Ryuichi Kanemaki and Tomohiko Kubota are Managing Directors at GCA Corporation. RECENT STOCK PERFORMANCE Index Performance Last 12 Months Last 3 Years 55% 100% 90% 50% 80% 45% 70% 40% 60% 35% 50% 30% 40% 25% 30% 20% 20% 10% 15% 0% Feb-15 May-15 Aug-15 Nov-15 Feb-16 May-16 Aug-16 Nov-16 Feb-17 May-17 Aug-17 Nov-17 Feb-18 10% (10%) 5% (20%) 0% (30%) Feb-17 Mar-17 Apr-17 May-17 Jun-17 Jul-17 Aug-17 Sep-17 Oct-17 Nov-17 Dec-17 Jan-18 Feb-18 (5%) (40%) Sector 3 Months 1 Year 3 Years Platform 8.5% 34.7% 75.6% Security 4.9% 17.6% 28.1% Infrastructure 10.2% 39.6% 58.7% SaaS / On Demand 11.8% 49.3% 88.8% BI & Analytics 19.0% 40.4% 19.0% Vertical 5.9% 36.0% 42.0% Notes: Sources: Capital IQ. Market Data as of 2/1/2018. Platform: ADBE, IBM, MSFT, ORCL, SAP. Security: ABT, CHKP, CUDA, CYBR, FEYE, FSC1V, FTNT, IMPV, MIME, MOBL, PANW, PFPT, QLYS, RPD, SCWX, SPLK, SYMC, Trend Micro, VDSI, ZIXI. Infrastructure: ALTR, APPN, ATEN, CA, CTXS, CVLT, FFIV, LOGM, MCRO, MULE, NEWR, NOW, NTCT, NTNX, PRGS, PSTG, RHT, SAIL, SOW, SPLK, TEAM, VMW. SaaS / On Demand: AMBR, APPN, APTI, AYX, AZPN, BCOV, BLKB, BNFT, BOX, CALD, CARB, CLDR, COUP, CRM, CSLT, CSOD, ECOM, FIVN, HUBS, INST, JCOM, LOGM, LPSN, MDB, MIME, MRIN, MULE, NEWR, NOW, OKTA, PAYC, PCTY, PCYG, QLYS, RNG, RP, SEND, SHOP, SPSC, TWOU, ULTI, VEEV, WDAY, WK, YEXT, ZEN. BI & Analytics: ATTU, AYX, CLDR, DATA, DWCH, FICO, GSUM, HDP, MSTR, SPLK, TDC, VRNT. 4 Vertical: APPF, ATHN, BLKB, CERN, CLGX, CSLT, CSU, ELLI, GWRE, HSTM, INOV, INST, MDRX, MDSO, RP, SSNC, VEEV. TRADING COMPARABLES Valuation and Operational Metrics EV / 2018E Revenue EV / 2018E EBITDA 7.0x 45.0x 6.1x 39.2x 5.7x 40.0x 6.0x 5.5x 5.1x Median: 5.3x 35.0x 28.5x 5.0x 30.0x 27.5x Median: 25.8x 4.2x 4.2x 24.0x 4.0x 25.0x 20.5x 20.0x 3.0x 14.4x 15.0x 2.0x 10.0x 1.0x 5.0x 0.0x 0.0x SaaS Platform Infrastructure Vertical Security BI & Analytics SaaS BI & Analytics Infrastructure Security Vertical Platform 2018E / 2017E Revenue Growth 2018E EBITDA Margin 40.0% 40.0% 38.1% 35.0% 35.0% 30.0% 30.0% 26.0% Median: 23.4% 23.5% 23.2% 25.0% 21.3% Median: 16.4% 25.0% 19.2% 20.0% 17.3% 15.5% 13.7% 20.0% 17.6% 15.0% 15.0% 13.8% 9.9% 10.0% 10.0% 5.0% 5.0% 0.0% 0.0% SaaS BI & Analytics Infrastructure Vertical Security Platform Platform Vertical Infrastructure Security SaaS BI & Analytics Notes: Sources: Capital IQ. Market Data as of 2/1/2018. Figures represent mean values of respective comp groups. Platform: ADBE, IBM, MSFT, ORCL, SAP. Security: ABT, CHKP, CUDA, CYBR, FEYE, FSC1V, FTNT, IMPV, MIME, MOBL, PANW, PFPT, QLYS, RPD, SCWX, SPLK, SYMC, Trend Micro, VDSI, ZIXI. Infrastructure: ALTR, APPN, ATEN, CA, CTXS, CVLT, FFIV, LOGM, MCRO, MULE, NEWR, NOW, NTCT, NTNX, PRGS, PSTG, RHT, SAIL, SOW, SPLK, TEAM, VMW. SaaS / On Demand: AMBR, APPN, APTI, AYX, AZPN, BCOV, BLKB, BNFT, BOX, CALD, CARB, CLDR, COUP, CRM, CSLT, CSOD, ECOM, FIVN, HUBS, INST, JCOM, LOGM, LPSN, MDB, MIME, MRIN, MULE, NEWR, NOW, OKTA, PAYC, PCTY, PCYG, QLYS, RNG, RP, SEND, SHOP, SPSC, TWOU, ULTI, VEEV, WDAY, WK, YEXT, ZEN. BI & Analytics: ATTU, AYX, CLDR, DATA, DWCH, FICO, GSUM, HDP, MSTR, SPLK, TDC, VRNT. 5 Vertical: APPF, ATHN, BLKB, CERN, CLGX, CSLT, CSU, ELLI, GWRE, HSTM, INOV, INST, MDRX, MDSO, RP, SSNC, VEEV. PUBLIC COMPANY VALUATIONS Software Trading Statistics ($MM, Except Per Share Data) Stock Trading Statistics Operating Metrics Price Equity Net Enterprise EV / Revenue EV / EBITDA Price / EPS CY Rev. Growth EBITDA Margin 2/1/2018 Value Debt Value CY 17E CY 18E CY 19E CY 17E CY 18E CY 19E CY 17E CY 18E CY 19E 17E/16A 18E/17E 19E/18E CY 17E CY 18E CY 19E Platform Microsoft Corporation $94.26 $725,782 ($45,347) $680,435 7.1x 6.1x 5.6x 20.5x 15.0x 13.2x 76.6x 24.9x 22.6x 7.6% 16.6% 8.3% 34.8% 40.6% 42.7% Oracle Corporation $51.63 213,728 (10,904) 202,824 5.2 5.0 4.8 13.4 10.7 10.1 22.2 16.9 15.6 4.5% 4.2% 4.6% 38.9% 46.6% 47.1% International Business Machines Corporation $162.40 150,349 34,244 184,593 2.3 2.3 2.3 11.3 9.5 9.3 26.4 11.7 11.4 (1.0%) 1.2% 0.5% 20.6% 24.3% 24.6% SAP SE $111.84 134,080 40 134,120 4.8 4.4 4.1 16.1 12.9 12.0 27.8 20.5 18.6 21.0% 7.7% 6.9% 29.5% 34.2% 34.5% Adobe Systems Incorporated $199.38 98,011 (3,937) 94,074 12.9 10.7 9.2 37.7 24.0 20.3 59.0 31.8 28.1 24.7% 20.0% 17.0% 34.2% 44.8% 45.3% Mean 6.5x 5.7x 5.2x 19.8x 14.4x 13.0x 42.4x 21.2x 19.3x 11.4% 9.9% 7.5% 31.6% 38.1% 38.8% Median 5.2 5.0 4.8 16.1 12.9 12.0 27.8 20.5 18.6 7.6% 7.7% 6.9% 34.2% 40.6% 42.7% Infrastructure VMware, Inc.