FINANCIAL TECHNOLOGY SECTOR REVIEW TECHNOLOGY, MEDIA & TELECOM GROUP │ Q2 2017 www.harriswilliams.de Harris Williams & Co. Ltd is a private limited company authorised and regulated by the Financial Conduct Authority, incorporated under English law with its registered office at 5th Floor, 6 St. Andrew Street, London EC4A 3AE, UK, registered with the Registrar of Companies for England and Wales under company number 7078852. Directors: Mr. Ned Valentine, Mr. Paul Poggi, Mr. Thierry Monjauze and Mr. Aadil Khan. Harris Williams & Co. Ltd Niederlassung Frankfurt (German branch) is registered in the Commercial Register (Handelsregister) of the Local Court (Amtsgericht) of Frankfurt am Main, Germany, under registration number HRB 96687, having its business address at Bockenheimer Landstrasse 33-35, 60325 Frankfurt am Main, Germany. Permanent Representative (Ständiger Vertreter) of the Branch Niederlassung: Mr. Jeffery H. Perkins. FINANCIAL TECHNOLOGY SECTOR REVIEW TECHNOLOGY, MEDIA & TELECOM GROUP │ Q2 2017 HARRIS WILLIAMS & CO. OVERVIEW KEY CONTACTS HARRIS WILLIAMS & CO. (HW&CO.) GLOBAL ADVISORY PLATFORM FINTECH KEY FACTS . Tyler Dewing Director . 25+ year history with over 120 [email protected] closed transactions in the last +1 (617) 654-2133 24 months . Scott Reinig Vice President . Over 260 professionals across [email protected] eight offices in the U.S. and +1 (617) 654-2113 Europe 2017 UNITED STATES . Strategic relationships in India . Jeff Bistrong and China Managing Director HW&Co. Office [email protected] . 10 industry groups Network Office +1 (617) 654-2102 . Mike Wilkins Managing Director HW&CO. TECHNOLOGY, MEDIA & TELECOM (TMT) GROUP FOCUS AREAS [email protected] +1 (415) 217-3411 SOFTWARE / SAAS INTERNET & DIGITAL MEDIA . Sam Hendler Managing Director . Enterprise Software . IT and Tech-Enabled . Online Marketing . eCommerce and Retail [email protected] +1 (617) 654-2117 . Data and Analytics Services . Consumer Internet . Mobile . Infrastructure and . Data Center and . Digital Media and Content EUROPE Managed Services Security Software . Thierry Monjauze Managing Director TMT VERTICAL FOCUS AREAS [email protected] +44 (0) 20 7518 8901 . Education Technology . Fintech . Professional Services . Public Sector and Non-Profit . Engineering Solutions . Healthcare IT . Human Capital . Supply Chain, Transportation, Software Management and Logistics SELECT RECENT HW&CO. TMT TRANSACTIONS has received has received a minority has received a majority has received a majority has received a majority has been has been acquired by has been acquired by has been acquired by has acquired a growth has been acquired by has been acquired by investment from Investment from investment from investment from recapitalized by investment from wwwwww.harrisw.harriswilliilliaammss.de PAGE | 1 FINANCIAL TECHNOLOGY SECTOR REVIEW TECHNOLOGY, MEDIA & TELECOM GROUP │ Q2 2017 HW&CO. FINANCIAL TECHNOLOGY (FINTECH) TAXONOMY HW&Co.’s fintech practice is focused on companies with software and technology core to their value proposition and market position. ENTERPRISE & COMMERCIAL INSTITUTIONAL CONSUMER Solutions focused on supporting B2B payments and Solutions focused on serving the specific Solutions focused on delivering improved financial financial activity, and serving the financial needs operational and compliance needs of banks, and payment experiences, personal wealth of enterprises of all sizes insurance companies, and asset managers management, and access to consumer loans KEY FOCUS AREAS KEY FOCUS AREAS KEY FOCUS AREAS PAYMENTS BANKING PEER TO PEER B2B TRANSACTIONS INSURANCE PERSONAL FINANCE FINANCIAL SOFTWARE ASSET MANAGEMENT TRADING SELECT MARKET PARTICIPANTS SELECT MARKET PARTICIPANTS SELECT MARKET PARTICIPANTS SELECT HW&CO. FINANCIAL TECHNOLOGY TRANSACTIONS EVENTS SaaS solutions that Youth sports Integrated payments automate data management software and member has received a minority collection, has received a majority and integrated has received a majority management solutions investment from bookkeeping, and investment from payments solutions investment from for faith-based and accounting processes non-profit organizations for SMBs Integrated SaaS and SaaS-based employee Data-driven marketing payment solutions for benefits and analytics tools to . HW&Co. will be at Money 20/20 in Las has been health clubs and fitness has been management has been the automotive industry nd th recapitalized by centers acquired by technology provider acquired by Vegas from October 22 -25 . Please contact SaaS solutions that SaaS solutions that Property valuation, tax [email protected] to enable grants, giving, manage the process of assessment, revenue, has been and financial has been claim to payment for has been billing, and document schedule a meeting. acquired by management for the acquired by physicians acquired by management software non-profit community solutions PAGE | 2 FINANCIAL TECHNOLOGY SECTOR REVIEW TECHNOLOGY, MEDIA & TELECOM GROUP │ Q2 2017 HARRIS WILLIAMS & CO. FINTECH ECOSYSTEM CONSUMER PLATFORMS INSTITUTIONAL PLATFORMS ENTERPRISE & COMMERCIAL PLATFORMS Solutions focused on delivering improved financial Solutions focused on serving the specific Solutions focused on supporting B2B and payment experiences, personal wealth operational and compliance needs of payments and financial activity, and serving management, and access to consumer loans banks, insurance companies, and asset the financial needs of enterprises of all sizes managers B2B P2P LENDING PAYMENTS MARKETPLACE ACCOUNTING LENDING D P2P ATA PAYMENTS Form of Payment & A GLOBAL REMITTANCE NALYTICS CONSUMER MOBILE COMMERCIAL WALLET BUSINESS SUPPLY CHAIN CREDIT & MONITORING Goods / Services PROCUREMENT Capture Payment Payment Capture Information CROWD SUBSCRIPTION FUNDING BILLING UNDER- PERSONAL HR, PAYROLL, Settlement WRITING FINANCIAL & BENEFITS MGMT D Route ISTRIBUTED to Network TRADING ACQUIRER / PAYMENT PROCESSOR NETWORK Authorization L INSURANCE EDGER ASSET COMPLIANCE MANAGEMENT Transaction Data T & TRADING ECHNOLOGY CORE RISK Authentication SYSTEMS MGMT WEALTH MGMT UNDER- CORE WRITING LENDING BANK SYSTEMS * Dotted lines represent the typical flow of payment transactions. PAGE | 3 FINANCIAL TECHNOLOGY SECTOR REVIEW TECHNOLOGY, MEDIA & TELECOM GROUP │ Q2 2017 CASE STUDY: RECEIPT BANK ENTERPRISE & COMMERCIAL HW&Co.’s TMT Group advised Receipt Bank on the minority investment from Insight Venture Partners. Receipt Bank is an award-winning automated RELEVANT SECTORS: bookkeeping SaaS platform for over 3,600 SMBs and accounting partners across EMEA, Australia, and North America. SaaS . Receipt Bank is recognized for its best-in-class a portfolio company of data extraction technology and unrivaled Fintech accuracy, and has built one of the largest AI teams in the industry focused on bookkeeping automation. Data & Analytics has received a minority investment from . The minority growth investment from Insight AI/ Machine Venture Partners positions the Company to Learning accelerate growth through global expansion and new product development as it continues to reinforce its market-leading position. HW&CO. DEAL CONTACTS Thierry Monjauze Jonathan Organ Sylvain Noblet Managing Director Director Vice President [email protected] [email protected] [email protected] Office: +44 (207) 518-8901 Office: +44 (207) 518-8909 Office: +44 (207) 518-8917 PAGE | 4 FINANCIAL TECHNOLOGY SECTOR REVIEW TECHNOLOGY, MEDIA & TELECOM GROUP │ Q2 2017 ENTERPRISE & COMMERCIAL MARKET OBSERVATIONS1 Payment Networks Payment Processing B2B Transactions Data & Compliance Payroll & Benefits Valuations Valuations Valuations Valuations Valuations TEV / LTM Revenue TEV / LTM EBITDA TEV / LTM EBITDA TEV / LTM EBITDA TEV / LTM EBITDA 10.0x 20.0x 20.0x 20.0x 40.0x 7.5x 15.0x 15.0x 15.0x 30.0x 5.0x 10.0x 10.0x 10.0x 20.0x 2.5x 5.0x 5.0x 5.0x 10.0x 0.0x 0.0x 0.0x 0.0x 0.0x Enterprise Value / LTM Rev. LTM EBITDA 17E EBITDA 7.5x 20.2x 18.5x 4.5x 14.5x 13.7x 4.6x 15.0x 10.3x 5.6x 14.6x 14.1x 6.4x 24.1x 16.3x Key Public Comps Key Public Comps Key Public Comps Key Public Comps Key Public Comps Transaction Spotlight Transaction Spotlight Transaction Spotlight Transaction Spotlight Transaction Spotlight June 28, 2017 May 30, 2017 May 1, 2017 May 15, 2017 June 6, 2017 Enterprise Value: N/A Enterprise Value: $625M Enterprise Value: $675M Enterprise Value: $3.3B Enterprise Value: $560M Observations Observations Observations Observations Observations . Networks continue to benefit from . The role of traditional payment . Growing digitization of payment . Executives are increasingly leveraging . With comprehensive solution offerings growing non-cash transaction volumes processors and merchant acquirers is activities in an omni-channel analytics-driven data solutions to make across compliance, benefits, and on a global basis, particularly in mobile evolving rapidly as transactions environment and technologies that decision-making processes more cost- wellness gaining prevalence, the and e-commerce environments become increasingly digitized and enable more efficient and secure efficient, flexible, and timely market continues to experience companies seek to deliver improved transactions, including on a cross- consolidation with companies . Focus remains on expanding the omni-channel experiences with border basis, continue to drive the . Data and compliance companies are broadening offerings and moving into breadth of payment networks while minimal