BUSINESS AND TECH-ENABLED SERVICES SECTOR REPORT March 2018 1 BUSINESS & TECH-ENABLED SERVICES DEAL DASHBOARD $94.4 Billion 788 M&A Volume YTD M&A Transactions YTD Quarterly M&A Volume ($Bn) and Deal Count Select M&A Transactions 100 $94.4 Announced Date Acquirer Target EV ($MM) 80 3/29/2018 NA 60 $48.5 $45.1 $45.5 $37.1 3/29/2018 NA 40 $31.1 $24.6 $27.4 $26.9 $19.1 $19.2 $21.7 Volume ($Bn) Volume $14.9 20 3/28/2018 $4,000 (Sig. M inority Stake) 0 3/26/2018 NA Q1 '15Q2 '15Q3 '15Q4 '15Q1 '16Q2 '16Q3 '16Q4 '16Q1 '17Q2 '17Q3 '17Q4 '17Q1 '18 (Investment) 1200 3/21/2018 NA 966 944 964 995 986 1000 901 929 917 875 894 797 788 788 800 3/21/2018 NA 600 3/19/2018 $1,180 Deal Count Deal 400 200 3/15/2018 $383 0 Q1 '15Q2 '15Q3 '15Q4 '15Q1 '16Q2 '16Q3 '16Q4 '16Q1 '17Q2 '17Q3 '17Q4 '17Q1 '18 3/15/2018 NA (1) Last 12 Months Business & Tech-Enabled Services Performance vs. S&P 500 3/14/2018 NA (Investment) 125.0% 3/13/2018 $205 120.0% 115.0% 3/13/2018 NA 110.0% 105.0% 3/12/2018 $108 100.0% 3/6/2018 $564 95.0% 90.0% 3/5/2018 NA Apr-17 May-17 Jun-17 Jul-17 Aug-17 Sep-17 Oct-17 Nov-17 Dec-17 Jan-18 Feb-18 Mar-18 Apr-18 Business & Tech-Enabled Services S&P 500 3/1/2018 NA (Investment) Notes: 2 Source: Capital IQ and PitchBook. Market Data as of 4/2/18. 1) Business & Tech-Enabled Services is comprised of all of the companies listed under Public Company Valuations. GCA OVERVIEW Business & Tech-Enabled Services Team New York Tokyo Milan London Frankfurt Mumbai th 640 Fifth Avenue, 10 Fl. 11-1 Marunouchi 1-chome Piazza San Fedele 4 1 Southampton St. Thurn-und-Taxis-Platz 6 146, Maker Chambers 6 New York, NY 10019 Chiyoda-ku, Tokyo 100-6230 20121 Milano London WC2R0LR 60313 Frankfurt Nariman Point, Mumbai 400 021 United States Japan Italy United Kingdom Germany India Phone: (212) 999-7090 Phone: +81 (3) 6212-7100 Phone: +39 02 76 01 73 40 Phone:+44 20 7484 4040 Phone: +49 69 204 34 6410 Phone: +91-22-6106-9000 Derek Bell Stephen Georgiadis * Akikazu Ida * Sascha Pfeiffer * Managing Director Managing Director Managing Director Managing Director Phone: (212) 999-7089 Phone: +44 207 484 4040 Phone: +81 (3) 6212-7241 Phone: +49 69 204 346 415 Mobile: (914) 953-0689 Mobile: +44 77770 827335 Mobile: +81 (80) 9027-3023 Mobile: +49 177 741 5643 [email protected] [email protected] [email protected] [email protected] Tobias Schultheiss * Alessandro Soprano * James Craven * Sameer Jindal * Managing Director Managing Director Managing Director Managing Director Phone: +49 69 204 346 416 Phone: +39 08 7601 7340 Phone: +44 207 484 4083 Phone: +91 22 6106 9001 Mobile: +49 160 534 6278 Mobile: +39 348 231 6056 Mobile: +44 7884 314 630 Mobile: +91 90 0441 4205 [email protected] [email protected] [email protected] [email protected] For a complete list of GCA’s global offices, visit www.gcaglobal.com. Notes: *Stephen Georgiadis and Alessandro Soprano are Managing Directors at GCA Altium Limited, a wholly-owned subsidiary of GCA Corporation. *Akikazu Ida is a Managing Director at GCA Corporation. 3 *Sascha Pfeiffer and Tobias Schultheiss are Managing Directors at GCA Altium AG, a wholly-owned subsidiary of GCA Corporation. *Sameer Jindal is a Managing Director at GCA India Investment Advisors, a wholly-owned subsidiary of GCA Corporation. RECENT STOCK PERFORMANCE Index Performance Last 12 Months Last 3 Years 150% 175% 140% 150% 130% 120% 125% 110% 100% 100% 90% 80% 75% Apr-17 May-17 Jun-17 Jul-17 Aug-17 Sep-17 Oct-17 Nov-17 Dec-17 Jan-18 Feb-18 Mar-18 Apr-18 Apr-15 Jul-15 Oct-15 Jan-16 Apr-16 Jul-16 Oct-16 Jan-17 Apr-17 Jul-17 Oct-17 Jan-18 Apr-18 Key Sector 3 Months 1 Year 3 Years Advertising & Marketing Services (3.6%) 0.4% 2.1% Events & Exhibitions 9.1% 36.6% 57.2% Information Services (0.6%) 19.5% 43.3% Consulting & Training 5.9% 15.4% 27.7% HR Services (3.1%) 13.8% 46.7% Staffing & Recruiting 2.1% 34.5% 56.3% IT & BPO Services 1.2% 16.7% 22.0% Customer Care / CRM Services (6.8%) 24.7% 57.2% S&P 500 (4.2%) 14.6% 29.5% Notes: Source: Capital IQ. Market Data as of 4/2/18. Advertising & Marketing Services: ADS, HUBS, IPG, IPS, JCOM, KOSE:A030000, MDCA, MDP, MONY, OMC, PUB, QNST, RATE, TREE, TSE:2433, TSE:4324, WPP, YELP, YOU. Consulting & Training: CBZ, CRAI, EXPO, FC, FCN, GPX, HCKT, HURN, ICFI, III, NCI, RECN. Customer Care /CRM Services: ATTO, CVG, RCF, SNX, SYKE, TSE:4708, TSE:6183, TSE:9715, TTEC. Events & Exhibitions: ASCL, EEX, GLO, ITE, MCHN, TRS, UBM, VVI. HR Services: ADP, BBSI, NSP, PAYX, TNET. Information Services: ABCO, ACXM, CLGX, DNB, EFX, ERM, EXPN, FDS, FICO, FORR, INF, INFO, IT, MCO, MORN, MSCI, NLSN, NRCI.B, NWSA, REL, SCOR, SPGI, TRI, TRU, VRSK, WKL. 4 IT & BPO Services: ACN, ATO, BSE:507685, BSE:526299, BSE:532819, BSE:533179, CAP, CNDT, CPI, CTSH, CVON, DXC, EPAM, EXLS, G, GIB.A, GLOB, HCLTECH, HEXAWARE, IBM, INFY, LXFT, PRFT, PSDO, SYNT, TCS, TECHM, TSE:4307, TSE:9613, VRTU, WNS. Staffing & Recruiting: ADEN, ASGN, HAS, HSII, KELY.A, KFRC, KFY, MAN, PAGE, RAND, RHI, TBI, TSE:2181, TSE:6098. TRADING COMPARABLES Valuation Metrics EV / 2018E EBITDA EV / 2018E Revenue 16.0x 5.0x 14.0x 13.7x 4.5x 4.3x 14.0x 13.1x 4.0x 3.7x 12.0x 10.8x 3.5x 9.8x 10.0x 9.3x 3.0x 8.7x 3.0x 8.0x 8.0x 2.5x 2.0x 2.0x 6.0x 1.4x 1.5x 4.0x 1.0x 1.0x 0.7x 0.6x 2.0x 0.5x 0.0x 0.0x Information HR Services Events & IT & BPO Consulting & Staffing & Advertising & Customer Information Events & HR Services IT & BPO Advertising & Consulting & Customer Staffing & Services Exhibitions Services Training Recruiting Marketing Care / CRM Services Exhibitions Services Marketing Training Care / CRM Recruiting Services Services Services Services Notes: Source: Capital IQ. Market Data as of 4/2/18. Figures reflect median values, except for HR services, which reflects mean values. Advertising & Marketing Services: ADS, HUBS, IPG, IPS, JCOM, KOSE:A030000, MDCA, MDP, MONY, OMC, PUB, QNST, RATE, TREE, TSE:2433, TSE:4324, WPP, YELP, YOU. Consulting & Training: CBZ, CRAI, EXPO, FC, FCN, GPX, HCKT, HURN, ICFI, III, NCI, RECN. Customer Care /CRM Services: ATTO, CVG, RCF, SNX, SYKE, TSE:4708, TSE:6183, TSE:9715, TTEC. Events & Exhibitions: ASCL, EEX, GLO, ITE, MCHN, TRS, UBM, VVI. HR Services: ADP, BBSI, NSP, PAYX, TNET. Information Services: ABCO, ACXM, CLGX, DNB, EFX, ERM, EXPN, FDS, FICO, FORR, INF, INFO, IT, MCO, MORN, MSCI, NLSN, NRCI.B, NWSA, REL, SCOR, SPGI, TRI, TRU, VRSK, WKL. 5 IT & BPO Services: ACN, ATO, BSE:507685, BSE:526299, BSE:532819, BSE:533179, CAP, CNDT, CPI, CTSH, CVON, DXC, EPAM, EXLS, G, GIB.A, GLOB, HCLTECH, HEXAWARE, IBM, INFY, LXFT, PRFT, PSDO, SYNT, TCS, TECHM, TSE:4307, TSE:9613, VRTU, WNS. Staffing & Recruiting: ADEN, ASGN, HAS, HSII, KELY.A, KFRC, KFY, MAN, PAGE, RAND, RHI, TBI, TSE:2181, TSE:6098. TRADING COMPARABLES Operational Metrics 2018E EBITDA Margin 2019E / 2018E Rev. Growth 35.0% 10.0% 31.8% 9.0% 8.6% 30.0% 8.0% 24.7% 7.0% 25.0% 7.0% 21.6% 5.8% 6.0% 5.6% 5.5% 20.0% 17.0% 17.0% 4.9% 5.0% 4.7% 4.2% 15.0% 12.0% 4.0% 10.7% 10.0% 3.0% 6.1% 2.0% 5.0% 1.0% 0.0% 0.0% Information Events & HR Services Advertising & IT & BPO Consulting & Customer Staffing & HR Services IT & BPO Information Consulting & Advertising & Customer Staffing & Events & Services Exhibitions Marketing Services Training Care / CRM Recruiting Services Services Training Marketing Care / CRM Recruiting Exhibitions Services Services Services Services Notes: Source: Capital IQ. Market Data as of 4/2/18. Figures reflect median values, except for HR services, which reflects mean values. Advertising & Marketing Services: ADS, HUBS, IPG, IPS, JCOM, KOSE:A030000, MDCA, MDP, MONY, OMC, PUB, QNST, RATE, TREE, TSE:2433, TSE:4324, WPP, YELP, YOU. Consulting & Training: CBZ, CRAI, EXPO, FC, FCN, GPX, HCKT, HURN, ICFI, III, NCI, RECN. Customer Care /CRM Services: ATTO, CVG, RCF, SNX, SYKE, TSE:4708, TSE:6183, TSE:9715, TTEC. Events & Exhibitions: ASCL, EEX, GLO, ITE, MCHN, TRS, UBM, VVI. HR Services: ADP, BBSI, NSP, PAYX, TNET. Information Services: ABCO, ACXM, CLGX, DNB, EFX, ERM, EXPN, FDS, FICO, FORR, INF, INFO, IT, MCO, MORN, MSCI, NLSN, NRCI.B, NWSA, REL, SCOR, SPGI, TRI, TRU, VRSK, WKL. 6 IT & BPO Services: ACN, ATO, BSE:507685, BSE:526299, BSE:532819, BSE:533179, CAP, CNDT, CPI, CTSH, CVON, DXC, EPAM, EXLS, G, GIB.A, GLOB, HCLTECH, HEXAWARE, IBM, INFY, LXFT, PRFT, PSDO, SYNT, TCS, TECHM, TSE:4307, TSE:9613, VRTU, WNS. Staffing & Recruiting: ADEN, ASGN, HAS, HSII, KELY.A, KFRC, KFY, MAN, PAGE, RAND, RHI, TBI, TSE:2181, TSE:6098. PUBLIC COMPANY VALUATIONS Business & Tech-Enabled Services Trading Statistics $MM, Except Per Share Data Stock LTM Trading Statistics Operating Metrics Price Price Range Equity Cash & Enterprise EV / Revenue EV / EBITDA Price / EPS CY Rev.