Financial Technology Sector Summary Week of June 5, 2017 1 DEAL DASHBOARD Financial Technology (3) (1) (3) $11.7 Bn | 1,189 Deals Industry Stock Market Performance $60.7 Bn | 803 Deals LTM Financing Volume Last Twelve Months LTM M&A Volume 150 Select Recent Financing Transactions Select Recent M&A Transactions Company Amount ($MM) 140 Target Acquirer EV ($MM) 130 $160.0 $758.0 120 $107.0 $260.0 110 $50.0 100 $120.0 90 $41.2 NA 80 $30.0 NA 70 Research Index Platform 6/2/16 7/18/16 8/31/16 10/14/16 11/29/16 1/12/17 2/27/17 4/12/17 5/26/17 $25.0 NA Payments Exchanges Financial Data, Content, Information Processors / $24.0 & Analytics Credit Bureaus NA Banking & Lending Online Broker Dealers Technology $13.5 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 6/2/17. 1) Refer to footnotes on page 5 for index composition. 2 2) Represents transactions announced between 5/22/17 and 6/5/17. 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 150 Last 12 Months 170 Last 3 Years 160 140 150 130 140 120 130 110 120 100 110 90 100 80 90 70 80 6/2/16 7/18/16 8/31/16 10/14/16 11/29/16 1/12/17 2/27/17 4/12/17 5/26/17 6/2/14 9/18/14 1/6/15 4/24/15 8/12/15 11/30/15 3/17/16 7/5/16 10/21/16 2/8/17 5/29/17 (1) (2) Indexed Price Performance Payments Exchanges Sector 3 Months 1 Year 3 Years (3) (4) Banking & Lending Technology 9.6% 22.1% 61.8% Financial Data, Content, Information Processors / Payments 8.0% 19.9% 37.7% & Analytics Credit Bureaus Healthcare / Insurance Technology 6.1% 3.2% 37.8% Financial, Data, Content, & Analytics 5.8% 14.7% 6.6% (6) (5) Banking & Lending Online Broker Dealers Investment Services, Software, & Technology 5.1% 10.3% 49.1% Technology Information Processors / Credit Bureaus 4.7% 11.3% 48.7% Exchanges 4.4% 13.9% 39.2% (7) (8) Online Broker Dealers (5.4%) 20.6% 46.3% 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, LSE:ALFA, SEIC, SSNC. (8) Healthcare / Insurance Technology: ATHN, CRD.B, DAR:CRDB, EBIX, GWRE, MJSO, SPNS, BSE:532254, SY, VRSK. MARKET SUMMARY EBITDA Multiples and Margins 2017E EBITDA Multiples 2017 EBITDA Margins Healthcare / Insurance Technology 19.0x Exchanges 58.9% Information Processors / Credit Bureaus 14.8x Online Broker Dealers 45.5% Banking and Lending Technology 14.4x Financial Data, Content, & Analytics 36.8% Investment Services, Software, & 14.2x Banking and Lending Technology 32.8% Technology Financial Data, Content, & Analytics 13.8x Information Processors / Credit Bureaus 30.6% Investment Services, Software, & Exchanges 13.0x 25.9% Technology Payments 12.5x Payments 25.4% Online Broker Dealers 7.7x Healthcare / Insurance Technology 16.4% 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 30.5x Exchanges 2.6 10.2% Healthcare / Insurance Technology 30.3x Healthcare / Insurance Technology 2.6 14.2% Information Processors / Credit Bureaus 24.8x Banking and Lending Technology 2.1 15.5% Online Broker Dealers 24.7x Information Processors / Credit Bureaus 2.1 13.7% Investment Services, Software, & 23.1x Financial Data, Content, & Analytics 2.0 11.3% Technology Investment Services, Software, & Financial Data, Content, & Analytics 22.6x 1.5 16.0% Technology Exchanges 20.1x Payments 1.4 14.1% Payments 18.3x Online Broker Dealers 1.2 17.4% 0.0x 5.0x 10.0x 15.0x 20.0x 25.0x 30.0x 35.0x 0.0 0.5 1.0 1.5 2.0 2.5 3.0 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. $221,690 20% 27.6x Blackhawk Network Holdings, Inc. $2,518 27% 27.1x Mastercard Incorporated $134,199 29% 29.1x Green Dot Corporation $1,928 67% 19.3x American Express Company $70,153 18% 13.8x Net 1 UEPS Technologies, Inc. $537 (15%) 5.3x PayPal Holdings, Inc. $64,291 39% 30.1x Sector Average $1,661 26% 17.2x Discover Financial Services $22,397 3% 9.8x Sector Average $102,546 22% 22.1x LTM Price Integrated Payments Hardware / Technology Market Cap. Performance P/E 2017 LTM Price Ingenico Group - GCS $6,009 (19%) 18.3x Merchant Processing Market Cap. Performance P/E 2017 NCR Corporation $4,968 33% 12.2x Cielo S.A. $19,258 (5%) 14.7x VeriFone Systems, Inc. $2,097 (30%) 12.6x First Data Corporation $16,524 42% 11.8x Cardtronics plc $1,548 (16%) 11.9x Global Payments Inc. $14,088 17% 23.6x Everi Holdings Inc. $445 384% 6.5x Vantiv, Inc. $12,163 15% 19.0x PAR Technology Corporation $137 90% NA Total System Services, Inc. $10,900 10% 18.3x Sector Average $2,534 74% 12.3x Square, Inc. $8,679 140% NM Wirecard AG $8,407 55% 28.0x LTM Price Worldpay Group plc $7,989 0% 23.0x Banking and Lending Technology Market Cap. Performance P/E 2017 GMO Payment Gateway, Inc. $2,136 (5%) 75.6x EVERTEC, Inc. $1,216 6% 10.2x Intuit Inc. $36,590 32% 31.3x SafeCharge International Group Limited $534 10% 16.7x Fidelity National Information Services, Inc. $28,651 15% 20.4x Planet Payment, Inc. $190 (22%) 21.1x Fiserv, Inc. $26,698 18% 24.5x JetPay Corporation $32 (20%) NM Jack Henry & Associates, Inc. $8,171 23% 32.5x Sector Average $7,855 19% 23.8x Temenos Group AG $6,440 64% 38.5x Ellie Mae, Inc. $3,872 34% 61.0x Black Knight Financial Services, Inc. $2,812 14% 29.6x LTM Price ACI Worldwide, Inc. $2,766 11% 50.1x Money Transfer Market Cap. Performance P/E 2017 LendingClub Corporation $2,262 11% NM The Western Union Company $9,086 (1%) 11.5x Q2 Holdings, Inc.