Financial Technology Sector Summary Week of July 24, 2017 1 DEAL DASHBOARD Financial Technology (3) (1) (3) $12.0 Bn | 1,198 Deals Industry Stock Market Performance $75.6 Bn | 927 Deals LTM Financing Volume Last Twelve Months LTM M&A Volume 160 Select Recent Financing Transactions Select Recent M&A Transactions Company Amount ($MM) 150 Target Acquirer EV ($MM) 140 $118.0 $4,035.0 130 $101.0 $1,746.0 120 Delta Card $70.0 $470.0 110 Services 100 $66.0 NA 90 $50.0 NA 80 7/21/16 8/28/16 10/4/16 11/10/16 12/18/16 1/24/17 3/2/17 4/9/17 5/16/17 $50.0 NA Payments Exchanges Financial Data, Content, Information Processors / $50.0 & Analytics Credit Bureaus NA Shareowner Services Banking & Lending Online Broker Dealers Technology $43.0 NA Investment Services, Healthcare / Insurance Software, & Technology Technology S&P 500 (3) (3) Quarterly Financing Volume Quarterly M&A Volume $4.0 400 $25 256 300 316 290 245 $3.5 298 350 228 276 $3.5 $20 210 250 $3.0 300 $3.0 $19.3 200 $2.5 250 $15 $2.6 $2.6 $2.0 200 150 $12.7 $12.9 $1.5 150 $10 $10.2 100 $1.0 100 $5 50 $0.5 50 $0.0 0 $0 0 Q3 2016 Q4 2016 Q1 2017 Q2 2017 Q3 2016 Q4 2016 Q1 2017 Q2 2017 Financing Volume ($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 7/21/17. 1) Refer to footnotes on page 5 for index composition. 2 2) Represents transactions announced between 7/7/17 and 7/25/17. 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 165 Last 3 Years 155 150 145 140 135 130 125 120 115 110 105 100 95 90 85 80 75 7/21/16 8/28/16 10/4/16 11/10/16 12/18/16 1/24/17 3/2/17 4/9/17 5/16/17 7/21/14 10/20/14 1/19/15 4/20/15 7/20/15 10/19/15 1/18/16 4/18/16 7/18/16 10/17/16 1/16/17 4/17/17 7/17/17 (1) (2) Indexed Price Performance Payments Exchanges Sector 3 Months 1 Year 3 Years (3) (4) Online Broker Dealers 13.8% 31.3% 50.8% Financial Data, Content, Information Processors / Financial, Data, Content, & Analytics 8.6% 7.7% (3.0%) & Analytics Credit Bureaus Exchanges 7.1% 10.9% 26.0% Healthcare / Insurance Technology 6.2% (4.3%) 31.0% (6) (5) Banking & Lending Online Broker Dealers Banking & Lending Technology 5.7% 11.9% 36.3% Technology Payments 5.4% 17.1% 20.8% Investment Services, Software, & Technology 5.0% 8.1% 40.3% (7) (8) Information Processors / Credit Bureaus 0.2% 6.9% 35.0% 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, 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 18.7x Exchanges 58.4% Banking and Lending Technology 15.1x Online Broker Dealers 46.9% Exchanges 15.1x Financial Data, Content, & Analytics 39.3% Financial Data, Content, & Analytics 15.0x Banking and Lending Technology 32.9% Investment Services, Software, & Information Processors / Credit Bureaus 14.9x 31.8% Technology Investment Services, Software, & 14.7x Information Processors / Credit Bureaus 30.5% Technology Payments 12.4x Payments 25.7% Online Broker Dealers 10.5x Healthcare / Insurance Technology 16.9% 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 30.0x Healthcare / Insurance Technology 2.6 14.4% Healthcare / Insurance Technology 29.5x Exchanges 2.4 9.7% Online Broker Dealers 27.0x Banking and Lending Technology 2.2 15.3% Information Processors / Credit Bureaus 25.7x Financial Data, Content, & Analytics 2.1 10.6% Investment Services, Software, & 24.6x Information Processors / Credit Bureaus 2.1 13.8% Technology Investment Services, Software, & Exchanges 22.3x 1.7 15.0% Technology Financial Data, Content, & Analytics 22.2x Online Broker Dealers 1.4 16.8% Payments 18.6x Payments 1.4 14.3% 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. $227,762 26% 28.0x Blackhawk Network Holdings, Inc. $2,535 29% 26.8x Mastercard Incorporated $138,562 40% 29.9x Green Dot Corporation $2,030 65% 20.4x American Express Company $75,747 35% 14.9x Net 1 UEPS Technologies, Inc. $563 (5%) 5.6x PayPal Holdings, Inc. $70,478 46% 32.9x Sector Average $1,709 30% 17.6x Discover Financial Services $23,773 11% 10.4x Sector Average $107,264 32% 23.2x LTM Price Integrated Payments Hardware / Technology Market Cap. Performance P/E 2017 LTM Price Ingenico Group - GCS $6,383 (14%) 18.6x Merchant Processing Market Cap. Performance P/E 2017 NCR Corporation $4,787 27% 11.7x Cielo S.A. $22,419 (11%) 16.3x VeriFone Systems, Inc. $2,204 3% 13.5x First Data Corporation $17,067 50% 12.1x Cardtronics plc $1,432 (27%) 11.1x Global Payments Inc. $14,300 21% 23.9x Everi Holdings Inc. $497 327% 7.3x Vantiv, Inc. $12,606 9% 19.5x PAR Technology Corporation $138 70% NA Total System Services, Inc. $11,331 12% 19.0x Sector Average $2,573 64% 12.4x Square, Inc. $10,045 184% NM Wirecard AG $9,204 67% 29.7x LTM Price GMO Payment Gateway, Inc. $2,135 14% 76.2x Banking and Lending Technology Market Cap. Performance P/E 2017 EVERTEC, Inc. $1,288 10% 10.9x SafeCharge International Group Limited $535 24% 16.8x Intuit Inc. $34,548 19% 29.6x Planet Payment, Inc. $189 (24%) 21.0x Fidelity National Information Services, Inc. $29,752 16% 21.2x JetPay Corporation $34 (7%) NM Fiserv, Inc. $26,910 15% 24.7x Sector Average $8,429 29% 24.5x Jack Henry & Associates, Inc. $8,246 21% 32.8x Temenos Group AG $6,871 73% 40.4x Ellie Mae, Inc. $3,744 14% 58.0x LTM Price Black Knight Financial Services, Inc. $2,914 9% 30.5x Money Transfer Market Cap. Performance P/E 2017 ACI Worldwide, Inc. $2,852 25% 51.6x The Western Union Company $8,996 (5%) 11.4x LendingClub Corporation $2,096 13% NM Euronet Worldwide, Inc.