Financial Technology Sector Summary Week of May 22, 2017 1 DEAL DASHBOARD Financial Technology (3) (1) (3) $11.9 Bn | 1,188 Deals Industry Stock Market Performance $75.9 Bn | 852 Deals LTM Financing Volume Last Twelve Months LTM M&A Volume 160 Select Recent Financing Transactions Select Recent M&A Transactions Company Amount ($MM) 150 Target Acquirer EV ($MM) 140 $130.0 $3,720.0 130 $120.0 NA 120 Z enith $63.0 110 M erchant NA Services 100 Wacai $42.0 NA 90 $42.0 NA 80 5/19/16 7/4/16 8/17/16 9/30/16 11/15/16 12/29/16 2/13/17 3/29/17 5/12/17 $37.0 NA Payments Exchanges Payments Financial Data, Content, Information Processors / $37.0 & Analytics Credit Bureaus NA Banking & Lending Online Broker Dealers Technology $25.0 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 5/19/17. 1) Refer to footnotes on page 5 for index composition. 2 2) Represents transactions announced between 5/8/17 and 5/22/17. 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 5/19/16 7/4/16 8/17/16 9/30/16 11/15/16 12/29/16 2/13/17 3/29/17 5/12/17 5/19/14 9/4/14 12/23/14 4/10/15 7/29/15 11/16/15 3/3/16 6/21/16 10/7/16 1/25/17 5/15/17 (1) (2) Indexed Price Performance Payments Exchanges Sector 3 Months 1 Year 3 Years (3) (4) Banking & Lending Technology 5.6% 21.3% 57.5% Financial Data, Content, Information Processors / Information Processors / Credit Bureaus 4.3% 17.0% 53.0% & Analytics Credit Bureaus Payments 3.9% 20.0% 40.1% Investment Services, Software, & Technology 1.9% 13.6% 53.9% (6) (5) Banking & Lending Online Broker Dealers Exchanges 1.1% 16.7% 42.6% Technology Financial, Data, Content, & Analytics 1.0% 16.1% 8.6% Healthcare / Insurance Technology (1.1%) 0.5% 30.8% (7) (8) Online Broker Dealers (10.3%) 26.4% 51.0% 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, SEIC, SSNC. (8) Healthcare / Insurance Technology: ATHN, CRD.B, DAR:CRDB, EBIX, GWRE, BSE:532254, SY, VRSK. MARKET SUMMARY EBITDA Multiples and Margins 2017E EBITDA Multiples 2017 EBITDA Margins Healthcare / Insurance Technology 16.4x Exchanges 58.9% Information Processors / Credit Bureaus 14.8x Online Broker Dealers 45.5% Banking and Lending Technology 14.1x Financial Data, Content, & Analytics 36.8% Investment Services, Software, & 13.8x Banking and Lending Technology 32.3% Technology Financial Data, Content, & Analytics 13.4x Information Processors / Credit Bureaus 30.8% Investment Services, Software, & Exchanges 12.9x 25.9% Technology Payments 12.3x Payments 25.5% Online Broker Dealers 7.6x Healthcare / Insurance Technology 18.8% 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 28.0x Banking and Lending Technology 2.0 15.4% Information Processors / Credit Bureaus 24.4x Information Processors / Credit Bureaus 2.0 13.7% Online Broker Dealers 24.3x Financial Data, Content, & Analytics 2.0 11.3% Investment Services, Software, & 22.1x Healthcare / Insurance Technology 1.9 14.4% Technology Healthcare / Insurance Technology 21.8x Exchanges 1.8 11.0% Investment Services, Software, & Financial Data, Content, & Analytics 21.6x 1.4 16.0% Technology Exchanges 19.8x Payments 1.3 14.5% Payments 18.4x Online Broker Dealers 1.2 17.4% 0.0x 5.0x 10.0x 15.0x 20.0x 25.0x 30.0x 0.0 0.5 1.0 1.5 2.0 2.5 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. $213,228 20% 26.5x Blackhawk Network Holdings, Inc. $2,363 34% 25.4x Mastercard Incorporated $126,031 24% 27.3x Green Dot Corporation $1,833 54% 18.4x American Express Company $68,642 22% 13.5x Net 1 UEPS Technologies, Inc. $556 (7%) 5.5x PayPal Holdings, Inc. $59,330 31% 27.8x Sector Average $1,584 27% 16.4x Discover Financial Services $22,853 10% 10.0x Sector Average $98,017 22% 21.0x LTM Price Integrated Payments Hardware / Technology Market Cap. Performance P/E 2017 LTM Price Ingenico Group - GCS $6,011 (14%) 18.6x Merchant Processing Market Cap. Performance P/E 2017 NCR Corporation $4,772 38% 11.7x Cielo S.A. $18,742 (8%) 14.4x VeriFone Systems, Inc. $1,951 (32%) 11.7x First Data Corporation $15,017 49% 10.7x Cardtronics plc $1,576 (6%) 12.2x Global Payments Inc. $13,730 21% 23.0x Everi Holdings Inc. $455 473% 6.7x Vantiv, Inc. $12,045 15% 18.8x PAR Technology Corporation $131 85% NA Total System Services, Inc. $10,766 10% 18.1x Sector Average $2,483 91% 12.2x Worldpay Group plc $8,338 11% 23.7x Wirecard AG $7,891 39% 26.6x LTM Price Square, Inc. $7,448 107% 94.4x Banking and Lending Technology Market Cap. Performance P/E 2017 GMO Payment Gateway, Inc. $1,980 (15%) 70.8x EVERTEC, Inc. $1,205 21% 10.1x Intuit Inc. $32,070 24% 27.7x SafeCharge International Group Limited $544 8% 17.0x Fidelity National Information Services, Inc. $27,504 15% 19.5x CardConnect Corp. $435 NA NM Fiserv, Inc. $25,630 19% 23.6x Planet Payment, Inc. $197 (15%) 21.8x Jack Henry & Associates, Inc. $7,815 21% 31.0x JetPay Corporation $32 (13%) NM Temenos Group AG $6,364 74% 37.9x Sector Average $7,026 18% 29.1x Ellie Mae, Inc. $3,679 37% 58.0x Black Knight Financial Services, Inc. $2,696 18% 28.4x ACI Worldwide, Inc. $2,656 18% 49.3x LTM Price LendingClub Corporation $2,286 53% NM Money Transfer Market Cap. Performance P/E 2017 Q2 Holdings, Inc. $1,603 76% NM The Western Union Company $8,959 1% 11.3x Bottomline Technologies (de), Inc.