Business & Tech-Enabled Services Sector Summary Report May 2017 1 BUSINESS & TECH-ENABLED SERVICES DEAL DASHBOARD $38.5 Billion 1,257 M&A Volume YTD M&A Transactions YTD Quarterly M&A Volume ($Bn) and Deal Count Select M&A Transactions $60.0 Announced Date Acquirer Target EV ($MM) $48.5 $50.0 $37.1 4/17/2017 NA $40.0 $31.1 $27.4 $27.1 $30.0 $24.6 4/14/2017 $2,000+ $19.1 $19.2 $21.7 $20.0 $11.4 Volume ($Bn) $10.0 4/10/2017 $457 $0.0 4/7/2017 NA Q1 '15 Q2 '15 Q3 '15 Q4 '15 Q1 '16 Q2 '16 Q3 '16 Q4 '16 Q1 '17 Q2 '17 1200 4/4/2017 NA 966 944 964 995 986 1000 901 929 917 875 800 4/4/2017 NA 600 382 4/3/2017 $400 400 Email / Cross-Channel Marketing Business Deal Deal Count 200 4/3/2017 $900 0 Q1 '15 Q2 '15 Q3 '15 Q4 '15 Q1 '16 Q2 '16 Q3 '16 Q4 '16 Q1 '17 Q2 '17 4/3/2017 $2,735 (1) Last 12 Months Business & Tech-Enabled Services Performance vs. S&P 500 4/3/2017 $288 120.0% 4/3/2017 $125 115.0% 110.0% 3/23/2017 NA 105.0% 3/21/2017 NA 100.0% 3/20/2017 $205 95.0% 90.0% 3/20/2017 NA May-16 Jun-16 Jul-16 Aug-16 Sep-16 Oct-16 Nov-16 Dec-16 Jan-17 Feb-17 Mar-17 Apr-17 May-17 Business & Tech-Enabled Services S&P 500 3/6/2017 $110 Notes: 2 Source: Capital IQ and PitchBook. Market Data as of 5/8/17. 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 Frankfurt London th 640 Fifth Avenue, 10 Fl. 11-1 Marunouchi 1-chome Piazza San Fedele 4 Thurn-und-Taxis-Platz 6 1 Southampton St. New York, NY 10019 Chiyoda-ku, Tokyo 100-6230 20121 Milano 60313 Frankfurt London WC2R0LR United States Japan Italy Germany United Kingdom Phone: (212) 999-7090 Phone: +81 (3) 6212-7100 Phone: +39 02 76 01 73 40 Phone: +49 69 204 34 6410 Phone:+44 20 7484 4040 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 7770 827335 Mobile: +81 (80) 9027-3023 Mobile: +49 177 741 5643 [email protected] [email protected] [email protected] [email protected] Adrian Reed* Tobias Schultheiss* Alessandro Soprano* Raiko Stelten* Managing Director Managing Director Managing Director Director Phone: +44 845 505 4343 Phone: +49 69 204 346 416 Phone: +39 02 7601 7340 Phone: +49 69 204 346 418 Mobile: +44 7887 626800 Mobile: +49 160 534 6278 Mobile: +39 348 231 6056 Mobile: +49 171 335 0879 [email protected] [email protected] [email protected] [email protected] Notes: *Stephen Georgiadis, Adrian Reed, 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. *Raiko Stelten is a Director at GCA Altium AG, a wholly-owned subsidiary of GCA Corporation. RECENT STOCK PERFORMANCE Index Performance Last 12 Months Last 3 Years 140% 170% 160% 130% 150% 140% 120% 130% 110% 120% 110% 100% 100% 90% 90% 80% 80% 70% May-16 Jun-16 Jul-16 Aug-16 Sep-16 Oct-16 Nov-16 Dec-16 Jan-17 Feb-17 Mar-17 Apr-17 May-17 May-14 Aug-14 Nov-14 Feb-15 May-15 Aug-15 Nov-15 Feb-16 May-16 Aug-16 Nov-16 Feb-17 May-17 Key Sector 3 Months 1 Year 3 Years Advertising & Marketing Services 4.3% 9.2% 20.0% Events & Exhibitions 10.3% 19.8% 16.1% Information Services 7.4% 15.3% 44.7% Consulting & Training (1.4%) 9.6% 26.0% HR Services 1.9% 15.9% 55.3% Staffing & Recruiting 11.6% 37.5% 24.5% IT & BPO Services 2.3% 3.7% 13.6% Customer Care / CRM Services 4.6% 20.7% 57.7% S&P 500 4.6% 16.5% 27.9% Notes: Source: Capital IQ. Market Data as of 5/8/17. Advertising & Marketing Services: ADS, GFK, HAV, 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, 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, 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 / 2017E EBITDA EV / 2017E Revenue 16.0x 4.0x 3.7x 13.5x 14.0x 13.0x 3.5x 3.3x 12.0x 3.0x 10.3x 10.1x 9.8x 9.6x 10.0x 9.5x 2.5x 8.3x 2.0x 8.0x 2.0x 1.9x 1.6x 6.0x 1.5x 1.2x 4.0x 1.0x 0.8x 0.6x 2.0x 0.5x 0.0x 0.0x Information HR Services Events & Consulting & IT & BPO Staffing & Advertising & Customer Information Events & HR Services IT & BPO Advertising & Consulting & Customer Staffing & Services Exhibitions Training Services Recruiting Marketing Care / CRM Services Exhibitions Services Marketing Training Care / CRM Recruiting Services Services Services Services Notes: Source: Capital IQ. Market Data as of 5/8/17. Figures reflect median values. Advertising & Marketing Services: ADS, GFK, HAV, 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, 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, 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 2017E EBITDA Margin 2018E / 2017E Rev. Growth 35.0% 9.0% 30.2% 7.9% 8.0% 30.0% 7.2% 26.7% 7.0% 25.0% 5.8% 6.0% 5.0% 4.9% 20.0% 4.8% 17.4% 5.0% 16.4% 4.4% 15.0% 13.8% 4.0% 12.3% 11.5% 3.0% 2.4% 10.0% 6.6% 2.0% 5.0% 1.0% 0.0% 0.0% Information Events & IT & BPO Advertising & HR Services Consulting & Customer Staffing & HR Services IT & BPO Information Advertising & Customer Consulting & Staffing & Events & Services Exhibitions Services Marketing Training Care / CRM Recruiting Services Services Marketing Care / CRM Training Recruiting Exhibitions Services Services Services Services Notes: Source: Capital IQ. Market Data as of 5/8/17. Figures reflect median values. Advertising & Marketing Services: ADS, GFK, HAV, 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, 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, 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. Growth Gross Margin EBITDA Margin 5/8/17 Low High Value Equiv. Debt Value CY 16A CY 17E CY 18E CY 16A CY 17E CY 18E CY 17E CY 18E 17E/16A 18E/17E CY 17E CY 18E CY 17E CY 18E Advertising & Marketing Services WPP plc $21.75 $15.58 $24.94 $27,329 $3,009 $8,109 $32,976 1.9x 1.6x 1.6x 10.5x 9.6x 9.2x 13.4x 12.6x 14.6% 2.2% NA NA 16.8% 17.2% Omnicom Group Inc.