Financial Technology Sector Summary Week of August 14, 2017 1 DEAL DASHBOARD Financial Technology (3) (1) (3) $12.06 Bn | 1,187 Deals Industry Stock Market Performance $67.9 Bn | 892 Deals LTM Financing Volume Last Twelve Months LTM M&A Volume (2) (2) Select Recent Financing Transactions 160 Select Recent M&A Transactions Company Amount ($MM) 150 Target Acquirer EV ($MM) $250.0 140 $850.0 130 $220.0 $112.0 120 $126.0 NA 110 $100.0 100 NA 90 $40.0 NA 80 8/11/16 9/18/16 10/25/16 12/1/16 1/8/17 2/14/17 3/23/17 4/30/17 6/6/17 7/13/17 $35.0 NA Payments Exchanges Financial Data, Content, Information Processors / Linklogis $29.0 & Analytics Credit Bureaus NA Banking & Lending Online Broker Dealers Technology $25.0 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 8/11/17. 1) Refer to footnotes on page 5 for index composition. 2 2) Represents transactions announced between 7/26/17 and 8/14/17. 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 Justin Kelly 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) 537-4543 Mobile: (617) 792-6496 Mobile: +81 90-7412-9411 Mobile: (616) 822-7179 Mobile: +44 (0) 778 606-8553 Mobile: (818) 851-2300 Mobile: (617) 620-3323 [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 8/11/16 9/18/16 10/25/16 12/1/16 1/8/17 2/14/17 3/23/17 4/30/17 6/6/17 7/13/17 8/11/14 11/10/14 2/9/15 5/11/15 8/10/15 11/9/15 2/8/16 5/9/16 8/8/16 11/7/16 2/6/17 5/8/17 8/7/17 (1) (2) Indexed Price Performance Payments Exchanges Sector 3 Months 1 Year 3 Years (3) (4) Payments 8.7% 25.2% 48.1% Financial Data, Content, Information Processors / Healthcare / Insurance Technology 8.2% 2.7% 34.2% & Analytics Credit Bureaus Financial, Data, Content, & Analytics 7.7% 15.2% 49.5% Exchanges 7.4% 15.3% 43.0% (6) (5) Banking & Lending Online Broker Dealers Online Broker Dealers 6.9% 38.5% 46.1% Technology Banking & Lending Technology 4.7% 17.0% 57.5% Investment Services, Software, & Technology 1.5% 10.7% 47.3% (7) (8) Information Processors / Credit Bureaus (3.4%) 2.7% 46.6% 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 18.5x Exchanges 59.1% Banking and Lending Technology 15.2x Online Broker Dealers 47.0% Exchanges 14.9x Financial Data, Content, & Analytics 39.3% Investment Services, Software, & Information Processors / Credit Bureaus 14.8x 32.7% Technology Financial Data, Content, & Analytics 14.6x Information Processors / Credit Bureaus 30.3% Investment Services, Software, & 13.4x Banking and Lending Technology 29.2% Technology Payments 12.9x Payments 25.4% Online Broker Dealers 10.6x Healthcare / Insurance Technology 16.8% 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 30.4x Healthcare / Insurance Technology 2.6 14.0% Healthcare / Insurance Technology 25.9x Exchanges 2.4 9.3% Online Broker Dealers 25.5x Banking and Lending Technology 2.2 14.5% Information Processors / Credit Bureaus 25.5x Financial Data, Content, & Analytics 2.0 10.2% Investment Services, Software, & 24.9x Information Processors / Credit Bureaus 1.9 13.8% Technology Investment Services, Software, & Financial Data, Content, & Analytics 22.5x 1.8 13.5% Technology Exchanges 22.2x Online Broker Dealers 1.3 16.8% Payments 18.1x Payments 1.3 15.0% 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. $234,691 27% 28.9x Blackhawk Network Holdings, Inc. $2,464 31% 25.9x Mastercard Incorporated $140,119 36% 29.9x Green Dot Corporation $2,414 100% 22.6x American Express Company $76,721 32% 15.1x Net 1 UEPS Technologies, Inc. $547 (5%) 5.5x PayPal Holdings, Inc. $71,771 55% 32.5x Sector Average $1,809 42% 18.0x Discover Financial Services $23,037 6% 10.4x Sector Average $109,268 31% 23.4x LTM Price Integrated Payments Hardware / Technology Market Cap. Performance P/E 2017 LTM Price Ingenico Group - GCS $6,285 (7%) 18.1x Merchant Processing Market Cap. Performance P/E 2017 NCR Corporation $4,327 6% 10.6x Cielo S.A. $20,032 (20%) 15.1x VeriFone Systems, Inc. $2,060 (4%) 12.6x First Data Corporation $16,512 35% 11.7x Cardtronics plc $1,208 (44%) 9.3x Global Payments Inc. $14,383 26% 23.9x Everi Holdings Inc. $520 265% 9.2x Vantiv, Inc. $14,095 34% 21.5x PAR Technology Corporation $151 76% NA Total System Services, Inc. $11,817 33% 19.5x Sector Average $2,425 49% 12.0x Wirecard AG $9,938 75% 31.9x Square, Inc. $9,527 116% NM LTM Price GMO Payment Gateway, Inc. $2,377 21% 93.7x Banking and Lending Technology Market Cap. Performance P/E 2017 EVERTEC, Inc. $1,343 8% 10.9x SafeCharge International Group Limited $514 12% 15.9x Intuit Inc. $35,222 21% 30.2x Planet Payment, Inc. $195 (5%) 20.9x Fidelity National Information Services, Inc. $30,137 13% 21.2x JetPay Corporation $27 (17%) NM Fiserv, Inc. $26,245 21% 24.4x Sector Average $8,397 26% 26.5x Jack Henry & Associates, Inc. $8,271 20% 33.4x Temenos Group AG $6,616 55% 39.1x Ellie Mae, Inc. $2,897 (14%) 56.0x LTM Price Black Knight Financial Services, Inc. $2,895 7% 30.6x Money Transfer Market Cap. Performance P/E 2017 ACI Worldwide, Inc. $2,616 19% 45.0x The Western Union Company $8,918 (9%) 11.1x LendingClub Corporation $2,398 0% NM Euronet Worldwide, Inc.