HW&Co. Industry Reader Template - Harris Williams & Co

www.harriswilliams.de

Harris Williams & Co. Ltd is a private limited company incorporated under English law having its registered office at 5th Floor, 6 St. Andrew Street, London EC4A 3AE, UK, registered withthe Registrar of Companies for England and Wales under company number 7078852. Directors: Mr. Christopher Williams, Mr. Ned Valentine, Mr. Paul Poggi and Mr. Thierry Monjauze,authorised and regulated by the Financial Conduct Authority.

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.

EUROPEAN TECHNOLOGYINDUSTRY UPDATE │ OCTOBER 2015

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www.harriswilliams.de

RECENT DEVELOPMENTS

1

COMPANY SPECIFIC NEWS

Dell has agreed to acquire all outstanding shares of EMC, the US-basedprovider of information storage systems, software, networks and services,valuing the business $63.3bn Euskaltel has agreed to acquire R Cable Y Telecomunicaciones Galicia, the

Spain-based provider of telephony, broadband/Internet, and multi-channelthematic television solutions, from CVC Capital Partners, valuing the business at€1.2bn Carlyle Europe has agreed to acquire a 51% stake in PA Consulting Group, the

UK-based provider of management and IT consulting, technology andinnovation services, valuing the business at c.$1.0bn Capita has reached an agreement to acquire Xchanging, the UK-based

provider of outsourcing and back office services for human resourcesmanagement, procurement, accounting and settlement and customeradministration, valuing the business at £453m comScore has signed a definitive agreement to acquire Rentrak, the US-based

provider of content measurement and analytical services to the entertainmentindustry, in a stock for stock merger transaction, valuing the business at $754m Entertainment One has agreed to acquire a 70% stake in Astley Baker Davies,

the UK-based company engaged in the production and creation of Peppa Pigthe pre-school animation series, valuing the business at £200m ProSiebenSat.1 Media has agreed to acquire eTRAVELi, the Sweden-based

online travel agent, from Segulah, valuing the business at €235m Ingram Micro has entered into definitive agreement to acquire Docdata

Nederland and DOCdata International, the provider of eCommerce solutions fororder fulfilment, returns logistics and online payment service, from DOCDATA,valuing the business at €155m PAI Partners has acquired a 40% stake in Grupo Konecta, the Spain-based

provider of outsourcing services and solutions, from Banco Santander, forc.€130m Rapid7 has acquired Logentries, the Ireland-based provider of machine data

search technology, valuing the business at $68m Capita has acquired Electranet, the UK-based company engaged in design,

installation and maintenance of IT servers, data centres and wireless networks,from Palatine Private Equity, valuing the business at £37m Zendesk has acquired We Are Cloud, the France-based designer and

developer of a SaaS business intelligence application BIME, from Alven CapitalPartners LDC has agreed to acquire PEI Media Group, the UK-based provider of financial

information services to global finance and investment communities active in thealternative asset classes SAP has acquired Multiposting, the France-based developer of online software

solutions for the human resources industry, from Kernel Investissements Marlin Equity Partners has acquired Bluegarden, the Denmark-based holding

provider of cloud-based payroll and HR administration software EQT has agreed to acquire a majority stake in kfzteile24, the Germany-based

online retailer of automotive spare parts and accessories Smartbox Experience has acquired Dakota Editions, the France-based gift box

e-retailer and publisher of travel guides and art books Mimecast, the UK-based provider of email management solutions, has

announced plans to raise $100m through an IPO


CONTENTS RECENT DEVELOPMENTS PUBLIC MARKET TRADING SOFTWARE IT SERVICES COMMUNICATIONS INTERNET AND DIGITAL MEDIA

TMT GROUP OVERVIEWOur Technology, Media & Telecom (TMT) Group is dedicated to providing superior merger & acquisition and capital markets advisory services to market leading companies. Our extensive industry knowledge and transaction leadership experience spans the software, digital media, IT services and communications sectors. Our professionals in London, Boston and San Francisco have global relationships with leading technology companies and financial investors. Thoughtful advice, deep experience and technology expertise, creativity and attention to detail from our senior technology bankers have resulted in a track record of consistently exceeding our clients' expectations.

CONTACTS

EUROPE

Thierry MonjauzeManaging [email protected]+44 (0) 20 7518 8901

Jonathan OrganVice [email protected]+44 (0) 20 7518 8909

UNITED STATESJeff BistrongManaging [email protected]+1 (617) 482-7501

Michael WilkinsManaging [email protected]+1 (415) 288-4260

Sam HendlerManaging [email protected]+1 (617) 654-2117

http://www.harriswilliams.com/

mailto:[email protected]





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(20%)

(15%)

(10%)

(5%)

0%

5%

10%

15%

20%

25%

30%

Oct 2014 Jan 2015 Apr 2015 Jul 2015 Oct 2015

Communications DJ Stoxx 600 Technology

Internet and Digital Media IT Services

Nasdaq Composite Software

Spending on Mobile Technologies spend is expected to reach $1.2tn by 2019, representing a CAGR of5.9% from 2014, according to IDC

eMarketer estimates UK adults' average total daily mobile time will reach 2 hours 24 minutes this year, up27 minutes from 2014 and representing a 500% increase from 2011

New data from Juniper Research has found that the digital games industry is expected to generatesoftware revenues of just over $80bn this year, rising to $104bn by the end of 2018, representing a CAGRof 9.1%. The majority of this growth will stem from the contributions made by the PC market, accountingfor 42% of games revenues this year

According to research released by Forrester, in 2020 14.6% of Western European advertising spend willcome from online display advertising, up from 10.1% in 2015. Online display advertising spend isexpected to grow to €17.8bn in 2020, representing a CAGR of 12.1%, with the UK remaining the largestonline display market in Western Europe

Consumer spending on communications services is expected to grow at a CAGR of 1.2% through 2019to reach $1.1tn, according to Gartner

According to research release by Juniper Research, by the end of 2015, the number of mobile bankingusers globally will exceed 1bn and reach 2bn by 2020 (37% of the global adult population), representinga CAGR of 14.9%

INDUSTRY TRENDS

RECENT DEVELOPMENTS

2


LAST TWELVE MONTHS

Stock PerformanceLAST 30 DAYS

PUBLIC MARKET TRADING STATISTICS

Source: Various industry news outlets

13.8%13.5%13.1%12.4%9.0%

(8.5%)

(10%)

(8%)

(6%)

(4%)

(2%)

0%

2%

4%

6%

8%

10%

16 Sep 23 Sep 30 Sep 07 Oct 14 Oct

Communications DJ Stoxx 600 TechnologyInternet and Digital Media IT ServicesSoftware Nasdaq Composite

3.7%2.5%2.0%1.5%1.0%

(2.5%)

http://www.marketwatch.com/story/spending-on-mobile-technologies-to-reach-12-trillion-by-2019-according-to-idc-2015-10-05

http://www.emarketer.com/Article/Digital-Set-Take-Majority-Share-UK-Time-Spent-with-Media-2016/1013039

http://www.juniperresearch.com/press/press-releases/digital-games-revenues-to-pass-$100-billion-per-an

https://www.forrester.com/Forrester+Research+Online+Display+Advertising+Forecast+2015+To+2020+Western+Europe/fulltext/-/E-res128981

http://www.gartner.com/document/3151017?ref=QuickSearch&sthkw=&refval=157113481&qid=

http://www.bizreport.com/2015/10/juniper-research-1-billion-mobile-banking-users-by-end-of-20.html

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PUBLIC MARKET TRADING STATISTICS

3


COMPARABLE TRADING SUMMARY

Rev. Growth EBITDA Margin CY2015E CY2016E CY2015E CY2016E CY2015E CY2016E

SoftwareEuropean Large Cap. Software 15.7% 34.1% 5.1x 4.8x 15.2x 13.8x 22.9x 20.7xApplication Software 5.1% 25.6% 4.2x 3.8x 17.3x 14.7x 20.2x 19.1xInfrastructure Software 12.3% 29.5% 3.4x 3.0x 11.6x 10.4x 17.4x 17.3xLarge Cap. SaaS 29.5% 13.2% 7.8x 6.2x 30.8x 24.7x 38.8x 36.7xSmall Cap. SaaS 21.9% 5.1% 4.7x 3.8x 28.2x 28.0x NM 34.9xHCM/WFM 22.7% 6.8% 6.6x 5.3x 28.0x 20.7x 24.9x 24.3xFinTech 13.0% 27.0% 5.1x 4.4x 16.5x 15.6x 24.0x 22.2xHealthcare IT 10.2% 12.5% 3.2x 2.8x 13.7x 12.0x 23.6x 21.5xData and Data Analytics 12.8% 24.5% 4.9x 4.2x 11.2x 14.7x 18.4x 16.8xSecurity Software 18.8% 21.5% 5.4x 4.5x 13.8x 13.9x 18.6x 22.5xCAx/PLM 4.5% 27.1% 4.6x 4.4x 18.2x 13.8x 27.2x 22.9x

IT ServicesIT Services 4.1% 12.7% 1.0x 1.0x 8.5x 7.5x 17.2x 14.5xOffshore IT Services 13.2% 24.0% 3.3x 2.9x 13.5x 12.0x 19.5x 18.2xManaged Services, Colocation and Hosting 11.6% 29.2% 2.7x 2.4x 9.8x 8.5x 21.3x 18.7xData Centres 8.3% 52.9% 7.8x 7.0x 14.7x 13.1x 31.1x 33.4xPaaS/IaaS 14.2% 24.5% 3.7x 3.1x 10.3x 8.5x 18.1x 18.9x

CommunicationsDigital Broadband 0.8% 10.5% 1.1x 1.0x 11.8x 8.7x 19.8x 20.3xDiversified Communication Equipment 2.6% 10.7% 1.0x 1.0x 11.3x 8.0x 20.7x 14.3xMobile Content/Solutions Providers 15.5% 13.6% 1.3x 1.1x 9.9x 6.7x 18.9x 16.7xMobile Infrastructure Software 0.3% 23.9% 2.5x 2.3x 12.5x 8.0x 20.2x 17.2x

Internet and Digital MediaGlobal Internet Leaders 9.6% 34.4% 5.8x 4.8x 17.1x 14.0x 20.6x 22.5x

Chinese Internet Leaders 41.3% 0.6% 5.2x 3.6x 22.4x 12.7x 24.7x 22.1xOnline Classifieds 15.6% 32.2% 5.4x 4.6x 16.5x 12.3x 22.2x 20.6xContent Providers/Communities 23.1% 17.5% 4.5x 3.6x 26.9x 17.4x 22.2x 35.7xEcommerce 15.1% 18.3% 4.0x 3.3x 17.6x 13.6x 23.9x 27.6xInteractive Entertainment 1.2% 27.7% 2.8x 2.6x 10.3x 9.8x 22.8x 19.9x

Intermediation and Comparison 24.3% 16.8% 3.1x 2.8x 13.4x 13.6x 24.7x 21.1xOnline Gambling 11.1% 24.1% 3.4x 2.9x 14.2x 12.7x 25.1x 22.8xDigital Marketing 21.4% 12.5% 2.7x 2.2x 13.1x 14.3x 20.9x 16.9xOnline Travel 10.5% 22.5% 4.3x 3.6x 14.6x 16.1x 24.6x 25.6xEducational Technology (1.4%) 1.6% 2.1x 1.8x 6.2x 12.6x 22.4x 29.6xInternet Services 31.6% 15.6% 3.2x 2.7x 18.9x 14.8x 12.5x 20.8x

P / EEV / Revenue EV / EBITDACY2015E

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(15%)

(10%)

(5%)

0%

5%

10%

15%


Application Software CAx/PLM Data and Data Analytics European Large Cap. Software

Fintech HCM/WFM Healthcare IT Infrastructure Software

Large Cap. SaaS Security Software Small Cap. SaaS

SOFTWARE

4


LAST 30 DAYS PERFORMANCE

LAST TWELVE MONTHS PERFORMANCE

(40%)

(30%)

(20%)

(10%)

0%

10%

20%

30%

40%


Application Software CAx/PLM Data and Data Analytics European Large Cap. Software

Fintech HCM/WFM Healthcare IT Infrastructure Software

Large Cap. SaaS Security Software Small Cap. SaaS

Small Cap. SaaS 27.9%Fintech 29.3%Data and Data Analytics 25.1%Large Cap. SaaS 22.3%Security Software 19.0%European Large Cap. Software 14.7%Healthcare IT 9.3%HCM/WFM 7.9%Application Software 6.8%CAx/PLM 0.4%Infrastructure Software (6.2%)

European Large Cap. Software 7.8%Application Software 3.5%Fintech 2.3%Small Cap. SaaS 2.1%CAx/PLM 1.4%Large Cap. SaaS 0.9%Data and Data Analytics 0.8%HCM/WFM (0.5%)Infrastructure Software (2.0%)Security Software (4.1%)Healthcare IT (4.3%)

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SOFTWARE

5


Market Enterprise CY2015ECap ($m) Value ($m) EBITDA Margin Rev. Growth CY2015E CY2016E CY2015E CY2016E CY2015E CY2016E

European Large Cap. SoftwareSAP 76,947 94,416 34.7% 9.7% 4.1x 3.8x 11.7x 11.1x 17.5x 16.0xDassault Systemes 18,727 18,105 33.5% 15.1% 5.6x 5.1x 16.6x 14.8x 30.7x 27.1xSage 8,455 9,450 29.9% 5.6% 4.3x 4.1x 14.5x 13.7x 20.5x 19.2xMicro Focus 4,079 5,530 40.9% 56.6% 4.9x 4.5x 11.9x 10.7x 15.3x 13.1xTemenos 2,737 3,402 34.9% 10.1% 6.4x 5.8x 18.3x 15.3x 26.5x 23.0xAveva 2,090 1,823 30.6% (2.7%) 5.6x 5.3x 18.2x 17.2x 27.1x 25.7x

Mean 34.1% 15.7% 5.1x 4.8x 15.2x 13.8x 22.9x 20.7xMedian 34.1% 9.9% 5.2x 4.8x 15.5x 14.2x 23.5x 21.1x

Application SoftwareMicrosoft 351,431 312,291 26.0% (4.8%) 3.5x 3.4x 13.5x 9.3x 18.6x 16.7xOracle 153,740 145,461 46.0% (2.9%) 3.9x 3.8x 8.4x 8.1x 14.6x 13.5xSAP 76,947 94,416 34.7% 9.7% 4.1x 3.8x 11.7x 11.1x 17.5x 16.0xIntuit 24,370 23,874 31.7% (3.8%) 5.4x 5.0x 17.1x 13.7x 32.2x 25.0xConstellation Software 9,082 9,028 24.0% 9.8% 4.9x 4.2x 20.5x 17.2x 25.9x 21.5xSage 8,455 9,450 29.9% 5.6% 4.3x 4.1x 14.5x 13.7x 20.5x 19.2xTyler Technologies 5,112 5,399 26.8% 17.5% 9.3x 7.5x 34.8x 26.8x NM NMGuidewire Software 3,694 3,148 17.7% 6.1% 8.1x 7.3x 45.7x 40.5x NM NMIFS 882 892 16.9% 10.6% 2.1x 2.0x 12.5x 11.4x 31.2x 24.6xSDL 397 468 9.5% 4.7% 1.1x 1.1x 11.5x 9.5x 19.8x 16.0xCegid 381 489 25.9% (1.3%) 1.5x 1.5x 5.9x 5.6x 15.8x 14.3xAmerican Software 262 220 18.2% 9.7% 2.0x 1.9x 10.8x 9.9x 25.6x 24.3x


Infrastructure Software Hewlett-Packard 44,974 61,630 12.3% (6.8%) 0.6x 0.6x 4.9x 4.9x 8.2x 8.0xVMware 33,394 23,199 36.0% 10.2% 3.5x 3.2x 9.7x 8.9x 17.0x 15.0xRed Hat 13,380 13,284 26.5% 14.5% 6.7x 5.9x 25.4x 21.7x NM 35.9xCA Technologies 12,074 11,220 38.1% (6.8%) 2.8x 2.7x 7.3x 6.9x 11.9x 11.4xCitrix Systems 11,558 12,258 29.5% 3.0% 3.8x 3.6x 12.9x 12.0x 19.8x 18.1xF5 Networks 8,149 7,543 39.8% 9.8% 3.8x 3.5x 9.6x 9.5x 17.5x 15.6xBrocade 4,349 3,784 29.7% 1.8% 1.7x 1.6x 5.6x 5.9x 10.4x 10.2xNetscout Systems 3,643 3,692 26.9% 88.3% 4.4x 2.8x 16.4x 9.8x 20.7x 17.0xSolarwinds 3,062 3,476 47.2% 18.5% 6.9x 5.8x 14.5x 13.0x 23.7x 20.6xSoftware AG 2,297 2,143 27.6% (5.6%) 2.2x 2.1x 7.8x 7.5x 11.9x 11.3xPegasystems 1,880 1,724 16.8% 11.7% 2.6x 2.3x 15.3x 13.0x 32.5x 28.3xProgress Software 1,309 1,106 33.3% 24.8% 2.7x 2.6x 8.0x 8.0x 15.3x 15.1xRadware 770 568 19.1% (2.8%) 2.6x 2.5x 13.8x 13.9x 19.4x 18.5x


Large Cap. SaaSSalesforce 47,488 50,398 18.4% 23.3% 7.6x 6.3x 41.3x 29.8x NM NMWorkday 13,933 12,982 6.0% 47.5% 11.2x 8.2x NM NM NM NMNetSuite 6,862 6,856 6.9% 34.3% 9.2x 7.1x NM NM NM NMThe Ultimate Software Group 5,246 5,159 23.9% 21.9% 8.4x 6.9x 35.0x 27.7x NM NMAthenahealth 5,220 5,575 18.2% 23.1% 6.1x 5.0x 33.2x 27.2x NM NMGuidewire Software 3,694 3,148 17.7% 6.1% 8.1x 7.3x 45.7x 40.5x NM NMVeeva Systems 3,202 2,821 28.0% 28.9% 7.0x 5.5x 25.1x 19.0x NM 43.0xMedidata Solutions 2,437 2,093 23.2% 19.9% 5.2x 4.3x 22.3x 17.4x NM 34.1xFleetmatics 1,922 1,897 31.6% 22.3% 6.7x 5.5x 21.2x 17.1x 38.8x 31.4xCornerstone OnDemand 1,906 1,917 0.0% 31.5% 5.6x 4.4x NM NM NM NMLogMeIn 1,640 1,431 24.0% 20.8% 5.4x 4.5x 22.4x 18.8x NM 38.3xPaylocity 1,508 1,547 3.7% 39.1% 8.9x 6.9x NM NM NM NMCvent 1,383 1,154 10.5% 31.0% 6.2x 5.1x NM 41.6x NM NM


EV / Revenue EV / EBITDA P / E

(1) COX Automotive has entered into an agreement to acquire Dealertrack Technologies

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Small Cap. SaaSSPS Commerce 1,136 1,104 13.8% 24.4% 7.0x 5.9x NM 39.4x NM NMCallidus 961 861 11.5% 25.3% 5.1x 4.4x 44.5x 30.9x NM NMBenefitfocus 881 825 (20.6%) 29.8% 4.7x 3.8x NM NM NM NMTextura 667 665 11.1% 42.3% 7.5x 5.4x NM 28.8x NM NMJIVE 355 249 0.5% 9.0% 1.3x 1.2x NM 28.5x NM NMSciQuest 286 160 17.7% 1.9% 1.5x 1.4x 8.6x 7.4x NM 31.9xChannel Advisors 251 179 (8.0%) 14.3% 1.8x 1.6x NM NM NM NMMarin Software 128 91 (11.3%) 7.6% 0.9x 0.8x NM NM NM NM

Mean 5.1% 21.9% 4.7x 3.8x 28.2x 28.0x NM 34.9xMedian 11.1% 25.3% 5.1x 4.4x 30.0x 28.7x NM 36.2x

HCM/WFMWorkday 13,933 12,982 6.0% 47.5% 11.2x 8.2x NM NM NM NMThe Ultimate Software Group 5,246 5,159 23.9% 21.9% 8.4x 6.9x 35.0x 27.7x NM NMCornerstone OnDemand 1,906 1,917 0.0% 31.5% 5.6x 4.4x NM NM NM NMPaylocity 1,508 1,547 3.7% 39.1% 8.9x 6.9x NM NM NM NMBenefitfocus 881 825 (20.6%) 29.8% 4.7x 3.8x NM NM NM NMATOSS Software 216 196 26.1% 9.6% 3.9x 3.5x 14.8x 13.4x 24.9x 22.7xHalogen 145 113 (9.2%) 16.8% 1.7x 1.4x NM NM NM NMInvision Software 108 116 24.7% (14.4%) 8.4x 7.4x 34.1x 21.1x NM 25.9x


Healthcare ITMcKesson 44,675 49,782 2.7% 10.8% 0.3x 0.2x 9.8x 8.9x 15.4x 13.6xCerner 20,949 22,332 32.3% 34.1% 4.9x 4.3x 15.3x 12.8x 30.5x 25.6xSysmex 11,245 10,933 25.9% 19.4% 5.3x 4.6x 20.3x 17.5x NM 34.9xAllscripts Healthcare Solutions 2,458 3,000 17.2% 0.5% 2.1x 2.0x 12.4x 10.5x 27.7x 22.2xCompuGroup 1,639 1,917 22.0% 0.0% 3.0x 2.9x 13.8x 12.3x 18.6x 16.0xEMIS 987 1,014 30.8% 16.2% 4.1x 3.8x 13.3x 12.3x 23.1x 20.8xCegedim 554 746 19.1% (46.2%) 1.3x 1.2x 6.7x 6.2x NM 13.8xComputer Programs & Systems 489 454 20.8% (10.0%) 2.4x 2.3x 11.5x 9.9x 20.1x 17.8xSectra Aktiebolag 485 420 18.9% 7.1% 3.4x 3.0x 17.8x 14.5x 25.9x 25.1xCastlight Health 434 265 (83.8%) 71.3% 3.5x 2.3x NM NM NM NMCraneware 276 246 31.6% 8.5% 5.1x 4.6x 16.2x 15.1x 27.1x 25.5x


Security SoftwarePalo Alto Networks 15,370 13,667 18.4% 53.4% 12.3x 9.1x NM 36.5x NM NMCheck Point 14,403 12,979 56.7% 9.2% 8.0x 7.4x 14.1x 13.0x 19.5x 17.5xSymantec 13,543 12,197 32.8% (7.9%) 2.0x 1.9x 6.0x 5.5x 11.7x 10.4xVerisign 7,866 8,410 67.0% 4.3% 8.0x 7.6x 11.9x 11.1x 24.5x 21.8xFortinet 7,721 6,293 16.5% 33.2% 6.2x 5.1x 37.8x 29.1x NM NMGemalto 5,729 6,663 17.7% 19.7% 1.8x 1.7x 10.4x 9.1x 16.3x 13.5xFireEye 5,202 4,084 (26.4%) 51.1% 6.4x 4.6x NM NM NM NMTrend Micro 4,778 3,989 34.1% 10.1% 3.8x 3.7x 11.2x 10.6x 26.3x 24.9xProofpoint 2,446 2,156 0.9% 34.2% 8.4x 6.6x NM NM NM NMImperva 2,156 1,677 (3.3%) 33.6% 7.7x 6.3x NM NM NM NMBarracuda Networks 1,351 774 23.7% 16.5% 2.5x 2.2x 10.6x 8.2x NM 43.0xAVG Technologies 1,178 1,332 36.9% 17.0% 3.1x 2.7x 8.4x 7.2x 12.0x 10.2xQualys 1,015 947 28.8% 24.5% 5.7x 4.6x 19.9x 15.7x NM 45.7xVasco Data Security 714 557 24.1% 23.9% 2.3x 2.4x 9.7x 11.3x 15.0x 17.5xF-Secure 410 365 18.7% (10.9%) 2.2x 2.0x 11.7x 9.9x 23.8x 20.4xIntercede 80 90 (3.4%) (11.4%) 5.4x 4.1x NM NA NM NM


P / EEV / Revenue EV / EBITDA

SOFTWARE

6


PAGE |


Fintech Intuit 24,370 23,874 31.7% (3.8%) 5.4x 5.0x 17.1x 13.7x 32.2x 25.0xFiserv 20,591 25,036 33.5% 5.1% 4.7x 4.5x 14.1x 13.0x 23.8x 21.1xFidelity Information Services 19,210 24,224 30.3% 1.2% 3.7x 2.9x 12.3x 9.7x 21.0x 18.0xPaychex 16,869 17,323 42.4% 8.7% 6.1x 5.7x 14.4x 13.5x 25.6x 23.4xSS&C Technologies 6,970 6,684 42.5% 36.5% 6.4x 4.5x 15.0x 10.6x 27.4x 22.1xMSCI 6,651 6,765 42.4% 7.5% 6.3x 5.8x 14.8x 13.3x 27.2x 23.0xJack Henry 5,610 5,751 34.8% 3.2% 4.4x 4.2x 12.8x 11.8x 27.2x 24.8xGuidewire 3,694 3,148 17.7% 6.1% 8.1x 7.3x 45.7x 40.5x NM NMTemenos 2,737 3,402 34.9% 10.1% 6.4x 5.8x 18.3x 15.3x 26.5x 23.0xFair Isaac 2,566 3,292 24.9% 6.3% 3.9x 3.6x 15.6x 13.1x 17.6x 14.3xSimCorp 2,117 1,976 28.5% 10.1% 6.2x 5.7x 21.7x 19.4x 31.4x 27.1xEllie Mae 2,063 1,886 25.7% 52.6% 7.9x 6.4x 30.7x 23.9x NM 41.4xPaycom 2,028 2,333 21.5% 44.2% 11.0x 8.5x NM 40.9x NM NMEnvestnet 1,163 1,021 17.9% 18.7% 2.5x 2.0x 13.8x 9.9x 30.5x 22.8xFidessa 1,052 999 19.4% 3.6% 2.2x 2.2x 11.5x 11.2x 24.2x 22.8xIress 1,024 1,159 30.5% (5.9%) 4.5x 4.1x 14.9x 13.1x 22.1x 19.1xBottomline Technologies 983 989 21.5% 5.1% 2.9x 2.6x 13.6x 11.8x 18.5x NMEbix 931 1,012 36.1% 25.4% 3.9x 3.7x 10.8x 10.3x 12.6x 12.2xQ2 Holdings 890 810 (7.6%) 36.7% 7.5x 5.7x NM NM NM NMLinedata 228 274 25.0% 1.8% 1.4x 1.4x 5.6x 5.6x 11.7x 11.3xStatPro 74 76 13.6% (0.7%) 1.6x 1.5x 11.6x 10.3x 28.5x 25.1x


Data and Data AnalyticsNielsen 17,151 24,402 30.1% (1.4%) 3.9x 3.8x 13.1x 12.2x 17.9x 15.9xExperian 15,403 19,452 34.9% (2.1%) 4.1x 4.0x 11.8x 11.7x 18.4x 17.6xVerisk 12,431 16,486 47.4% 21.5% 7.8x 6.8x 16.5x 14.4x 26.5x 23.8xEquifax 11,523 13,754 34.9% 9.4% 5.2x 4.8x 14.8x 13.4x 23.6x 21.1xSplunk 7,350 6,206 6.0% 43.5% 9.8x 7.5x NM NM NM NMTableau Software 5,961 5,144 12.1% 60.4% 8.2x 6.0x NM 45.4x NM NMMicrostrategy 2,332 1,808 29.1% (9.6%) 3.3x 3.1x 11.5x 10.3x 22.2x 19.4xConvergys 2,240 2,551 12.8% 5.0% 0.9x 0.8x 6.7x 6.1x 14.4x 13.1xNeustar 1,481 1,857 45.4% 8.1% 1.8x 1.9x 3.9x 4.1x 6.1x 6.8xPROS 680 648 (8.0%) (7.2%) 3.7x 3.7x NM NM NM NM


CAx/PLMDassault Systems 18,727 18,105 33.5% 15.1% 5.6x 5.1x 16.6x 14.8x 30.7x 27.1xAutodesk 10,625 10,716 13.2% (0.5%) 4.3x 4.9x 32.7x NM NM NMAnsys 8,108 7,295 52.0% 2.5% 7.6x 7.0x 14.6x 13.4x 26.3x 23.8xPTC 3,712 4,289 27.8% (8.8%) 3.5x 3.0x 12.5x 9.6x 15.6x 14.7xAveva 2,090 1,823 30.6% (2.7%) 5.6x 5.3x 18.2x 17.2x 27.1x 25.7xNemetschek 1,388 1,595 24.7% 21.8% 5.0x 4.5x 20.1x 17.6x 34.1x 29.4xMensch und Maschine 130 174 7.6% 4.2% 1.0x 0.9x 12.9x 10.4x 29.2x 16.6x


EV / Revenue EV / EBITDA P / E

SOFTWARE

7


(1) Schneider Electric has entered into an agreement to acquire a majority stake in Aveva

(1)

PAGE |

(20%)

(10%)

0%

10%

20%

30%

40%

50%


Data Centres IT Services Managed Services, Colocation and Hosting Offshore IT Services PaaS/IaaS

(10%)

(8%)

(6%)

(4%)

(2%)

0%

2%

4%

6%

8%

10%

16 Sep 23 Sep 30 Sep 07 Oct 14 OctData Centres IT Services Managed Services, Colocation and Hosting Offshore IT Services PaaS/IaaS

IT SERVICES

8




Data Centres 6.8%PaaS/IaaS 4.2%IT Services 3.5%Offshore IT Services 2.7%Managed Services, Colocation and Hosting (1.4%)

Offshore IT Services 23.4%Data Centres 19.0%IT Services 17.8%PaaS/IaaS 2.7%Managed Services, Colocation and Hosting (6.9%)

PAGE |

0Market Enterprise CY2015E

Cap ($m) Value ($m) EBITDA Margin Rev. Growth CY2015E CY2016E CY2015E CY2016E CY2015E CY2016E

IT ServicesAccenture 60,752 60,371 16.6% 2.4% 1.9x 1.8x 11.7x 11.0x 21.1x 19.2xKDDI 56,792 64,886 30.3% 1.8% 1.7x 1.7x 5.6x 5.4x 13.4x 12.4xCapgemini 15,384 13,561 11.7% 7.6% 1.0x 0.9x 8.5x 7.2x 17.8x 14.7xNTT Group 14,140 15,629 16.4% 8.1% 1.2x 1.2x 7.3x 6.9x 35.9x 25.7xCapita 12,171 15,550 15.1% 10.8% 2.1x 1.9x 13.7x 12.8x 17.3x 16.1xCGI 11,046 12,729 18.3% (12.5%) 1.6x 1.6x 8.7x 8.3x 15.0x 13.6xFujitsu 9,779 15,835 7.1% 0.3% 0.4x 0.4x 5.6x 5.1x 10.0x 9.0xComputer Sciences 8,481 9,342 17.1% (11.4%) 0.8x 0.8x 4.8x 4.6x 13.4x 12.5xNEC 8,067 11,312 7.3% (0.5%) 0.5x 0.4x 6.2x 6.0x 19.7x 12.5xAtos Origin 7,943 8,055 11.2% 13.5% 0.7x 0.6x 5.8x 5.4x 12.5x 11.1xSopra 2,188 2,892 7.9% 49.1% 0.7x 0.7x 9.0x 7.7x 15.6x 12.3xBechtle 1,853 1,827 5.3% 4.6% 0.6x 0.5x 10.6x 9.7x 18.7x 16.7xTieto 1,831 1,884 13.6% (9.5%) 1.1x 1.1x 8.3x 7.6x 19.1x 14.6xIndra Sistemas 1,701 2,629 5.2% (6.1%) 0.8x 0.8x 15.4x 8.9x NM 16.1xGFI Informatique 362 480 7.5% 2.9% 0.5x 0.5x 6.4x 6.0x 11.9x 11.4x


Offshore IT ServicesTata 76,407 71,746 28.7% 18.3% 4.4x 3.9x 15.5x 13.7x 22.8x 20.2xInfosys 39,408 33,953 26.8% 8.8% 3.7x 3.4x 13.9x 12.2x 21.0x 19.4xCognizant 37,358 36,963 20.2% 21.7% 3.0x 2.6x 14.7x 12.8x 21.4x 18.8xWipro 22,375 18,872 22.4% 4.9% 2.4x 2.2x 10.9x 10.0x 15.7x 15.6xHCL 20,300 16,559 21.8% 12.1% 2.7x 2.4x 12.4x 10.9x 16.8x 17.2x

Mean 24.0% 13.2% 3.3x 2.9x 13.5x 12.0x 19.5x 18.2xMedian 22.4% 12.1% 3.0x 2.6x 13.9x 12.2x 21.0x 18.8xManaged Services, Colocation and Hosting Level 3 15,489 26,663 31.7% 21.5% 3.2x 3.0x 10.2x 9.3x 29.1x 20.0xUnited Internet 10,357 12,163 20.9% 15.7% 2.8x 2.7x 13.6x 12.1x 24.5x 19.8xRackspace 3,891 3,519 32.9% 10.8% 1.8x 1.6x 5.4x 4.7x 31.1x 25.6xInterxion 1,873 2,453 43.8% 6.2% 5.5x 5.0x 12.6x 11.2x NM 34.9xEndurance 1,705 2,967 36.2% 19.7% 4.0x 3.5x 10.9x 9.2x 11.5x 9.5xGoDaddy 1,672 2,777 20.4% 15.5% 1.7x 1.5x 8.5x 7.1x 22.8x 19.2xWindstream 723 11,487 31.1% (2.6%) 2.0x 2.0x 6.5x 7.0x NM NMiomart 420 495 43.4% 15.2% 4.3x 3.9x 10.0x 9.1x 20.2x 17.6xRedcentric 397 441 23.1% 24.3% 2.7x 2.4x 11.6x 10.3x 22.1x 17.4xInternap 366 700 24.8% (3.5%) 2.2x 2.1x 8.7x 7.6x NM NMProact 119 132 NA 11.3% 0.4x 0.4x NA NA 12.1x 10.3xMelbourne IT 118 133 12.6% 5.6% 1.2x 1.1x 9.5x 6.4x 18.5x 12.5x


Data CentresEquinix 15,908 20,020 46.8% 10.6% 7.4x 6.6x 15.9x 14.0x NM 28.3xDigital Realty Trust 8,691 15,542 57.8% 4.1% 9.2x 8.4x 15.9x 14.4x 39.0x 49.8xTelecity 3,399 3,902 46.6% 2.3% 7.0x 6.4x 15.1x 13.5x 28.4x 24.5xDuPont Fabros 1,675 3,738 62.5% 5.9% 8.5x 7.9x 13.6x 12.5x 25.8x 22.1xCoresite 1,340 2,142 50.9% 18.6% 6.7x 5.8x 13.1x 11.2x NM 42.3x


PaaS/IaaSEMC 45,770 53,749 25.1% 2.6% 2.1x 2.0x 8.5x 7.8x 14.6x 13.1xAkamai 12,600 12,523 40.3% 13.3% 5.7x 4.9x 14.0x 12.1x 29.2x 24.7xServiceNow 11,373 11,272 14.0% 47.1% 11.3x 8.3x NM NM NM NMNetapp 8,720 6,529 18.2% (7.9%) 1.1x 1.1x 6.2x 5.0x 15.4x 12.4xCommvault Systems 1,572 1,212 11.6% (5.8%) 2.1x 2.0x 18.1x 12.5x NM 34.6xSynchronoss 1,515 1,563 34.7% 27.1% 2.7x 2.3x 7.8x 6.5x 15.9x 13.6xProgress Software 1,309 1,106 33.3% 24.8% 2.7x 2.6x 8.0x 8.0x 15.3x 15.1xCarbonite 312 237 18.7% 12.6% 1.7x 1.6x 9.2x 7.6x NM NM


P / EEV / EBITDAEV / Revenue

IT SERVICES

9


(1) Equinix has entered into an agreement to acquire Telecity

(1)

(1)

PAGE |

(60%)

(50%)

(40%)

(30%)

(20%)

(10%)

0%

10%

20%

30%

40%


Digital Broadband Diversified Communication Equipment Mobile Content / Solutions Providers Mobile Infrastructure Software

COMMUNICATIONS

10




Digital Broadband 24.9%Diversified Communication Equipment (3.2%)Mobile Infrastructure Software (12.5%)Mobile Content / Solutions Providers (43.3%)

(20%)

(15%)

(10%)

(5%)

0%

5%

10%


Digital Broadband Diversified Communication Equipment Mobile Content / Solutions Providers Mobile Infrastructure Software

Mobile Content / Solutions Providers 4.5%Mobile Infrastructure Software 4.4%Diversified Communication Equipment 3.0%Digital Broadband (4.0%)

PAGE |


Digital BroadbandTomTom 2,375 2,333 12.6% 0.1% 2.0x 1.9x 16.2x 12.0x NM 25.4xTechnicolor 2,335 3,037 16.4% 0.2% 0.8x 0.6x 4.6x 4.5x 9.1x 10.5xLogitech 2,134 1,839 8.4% (2.5%) 0.9x 0.9x 10.5x 9.6x 31.7x 18.0xPace 1,735 1,820 11.1% (4.1%) 0.7x 0.7x 6.5x 6.2x 9.4x 8.9xKudelski 721 1,027 13.6% 7.0% 1.0x 1.0x 7.7x 7.9x 15.8x 14.3xParrot 569 500 5.8% 13.7% 1.5x 1.4x 25.7x 14.8x NM 46.1xExtreme Networks 331 348 5.9% (8.4%) 0.7x 0.7x 11.2x 5.7x 33.1x 19.1x


Diversified Communication EquipmentLM Ericsson Telephone 31,187 29,868 12.7% 3.0% 1.0x 1.0x 7.7x 6.6x 15.9x 13.2xAlcatel-Lucent 9,963 11,220 11.4% 1.8% 0.7x 0.7x 6.1x 5.5x 18.6x 12.8xCIENA 2,788 3,458 13.8% 10.2% 1.4x 1.2x 9.8x 8.3x 16.1x 13.2xADTRAN 735 627 4.8% (4.6%) 1.0x 1.0x 21.7x 11.7x 32.0x 17.9x


Mobile Infrastructure SoftwareQUALCOMM 83,619 81,696 36.8% (11.7%) 3.4x 3.4x 9.4x 8.7x 13.5x 11.9xAmdocs 8,815 7,541 20.3% 2.5% 2.0x 1.9x 10.1x 9.3x 17.2x 15.8xVeriSign 7,866 8,410 67.0% 4.3% 8.0x 7.6x 11.9x 11.1x 24.5x 21.8xSynchronoss Technologies 1,515 1,563 34.7% 27.1% 2.7x 2.3x 7.8x 6.5x 15.9x 13.6xRedknee Solutions 307 322 15.0% (15.3%) 1.4x 1.2x 9.6x 5.7x 35.5x 13.2xSonus Networks 295 221 5.3% (16.8%) 0.9x 0.8x 17.0x 5.1x NM 18.7xTeleCommunication Systems 205 315 9.9% 6.3% 0.8x 0.7x 8.2x 7.1x 14.4x 11.4xSmith Micro Software 42 27 2.7% 6.1% 0.7x 0.6x 26.2x 10.5x NM 31.5x


Mobile Content / Solutions ProvidersOpera Software 799 897 17.1% 20.3% 1.5x 1.2x 8.7x 6.5x 18.9x 13.7xGameLoft 320 348 10.2% 10.6% 1.1x 1.0x 11.2x 6.8x NM 19.7x


EV / EBITDA P / EEV / Revenue

COMMUNICATIONS

11


(1) Vivendi has entered into discussions to merge with Gameloft

(1)

PAGE |

(40%)

(20%)

0%

20%

40%

60%

80%

100%


Chinese Internet Leaders Content Providers / Communities Digital Marketing eCommerce

Global Internet Leaders Interactive Entertainment Intermediation and Comparison Online Classifieds

Online Travel Online Gambling Internet Services Educational Technology

INTERNET AND DIGITAL MEDIA

12




(20%)

(15%)

(10%)

(5%)

0%

5%

10%

15%

20%


Chinese Internet Leaders Content Providers / Communities Digital Marketing EcommerceGlobal Internet Leaders Interactive Entertainment Intermediation and Comparison Online TravelOnline Classifieds Online Gambling Internet Services Educational Technology

Educational Technology 12.8%Intermediation and Comparison 11.6%Online Gambling 7.5%Interactive Entertainment 5.5%Chinese Internet Leaders 4.5%Internet Services 2.8%Ecommerce 2.1%Online Travel 1.6%Online Classifieds 1.0%Content Providers / Communities 0.0%Global Internet Leaders (0.3%)Digital Marketing (3.0%)

Interactive Entertainment 86.2%Online Gambling 68.2%Educational Technology 67.6%Online Travel 26.6%Ecommerce 13.2%Global Internet Leaders 9.4%Chinese Internet Leaders 6.6%Digital Marketing 1.8%Intermediation and Comparison 0.9%Online Classifieds (13.2%)Internet Services (21.5%)Content Providers / Communities (23.3%)

(1)

(1)

(1) Education Technology index has been normalised to reflect Graham Holdings’ spin-off of its cable segment

PAGE |


Global Internet LeadersApple 654,159 648,052 34.8% 22.0% 2.8x 2.6x 7.9x 7.7x 11.9x 11.0xGoogle 429,153 398,004 40.8% 10.1% 5.4x 4.7x 13.3x 11.3x 23.5x 20.1xMicrosoft 351,431 312,291 26.0% (4.8%) 3.5x 3.4x 13.5x 9.3x 18.6x 16.7xFacebook 261,384 251,071 61.6% 38.8% 14.6x 10.8x 23.7x 17.6x NM 34.4xAmazon 245,197 258,774 9.7% 18.5% 2.4x 2.0x 25.1x 18.4x NM NMAlibaba 148,836 161,892 51.3% 23.5% 11.2x 8.7x 21.8x 17.5x 27.6x 22.4xBaidu 47,162 45,218 21.9% 34.1% 4.3x 3.2x 19.4x 15.1x 24.5x 19.3xeBay 30,858 26,299 39.7% (52.0%) 3.1x 2.9x 7.7x 7.2x 13.5x 12.5xYahoo! 27,423 25,657 23.9% (4.8%) 6.1x 6.2x 25.7x 25.8x NM 46.2xYandex 3,406 4,084 34.1% 10.6% 4.5x 3.8x 13.1x 10.5x 24.7x 19.6x


EcommerceAmazon 245,197 258,774 9.7% 18.5% 2.4x 2.0x 25.1x 18.4x NM NMAlibaba 148,836 161,892 51.3% 23.5% 11.2x 8.7x 21.8x 17.5x 27.6x 22.4xNaspers 50,613 61,594 9.4% 0.1% 9.8x 8.4x NM NM NM 33.2xNetflix 43,555 46,562 7.2% 23.3% 6.9x 5.3x NM NM NM NMJD.com 35,886 31,680 0.3% 53.6% 1.1x 0.8x NM NM NM NMeBay 30,858 26,299 39.7% (52.0%) 3.1x 2.9x 7.7x 7.2x 13.5x 12.5xIAC 5,935 6,477 14.9% 4.5% 2.0x 1.8x 13.5x 9.9x 22.7x 17.1xJUST EAT 4,072 3,936 23.4% 54.0% 10.8x 8.1x 46.0x 28.7x NM 44.4xMercadolibre 4,058 3,963 28.3% 16.8% 6.2x 5.3x 22.0x 18.2x NM 28.7xMail.ru 3,663 4,277 47.3% 16.2% 6.9x 6.1x 14.6x 12.5x 23.0x 18.7xAsos 3,389 3,674 5.9% 17.6% 2.0x 1.6x 33.1x 25.9x NM 49.6xOcado 2,859 3,188 7.4% 15.3% 1.9x 1.6x 25.2x 21.0x NM NMCimpress 2,409 3,201 14.5% 14.6% 2.0x 1.8x 13.8x 11.9x 22.9x 22.7xGroupon 2,349 1,299 9.1% 0.1% 0.4x 0.4x 4.5x 3.9x 26.8x 19.5xzulily 2,181 NM 4.9% 11.4% NA NA NA NA NM 43.5xGrubHub 2,106 2,257 30.5% 45.1% 6.2x 4.8x 20.3x 15.3x NM 36.7xShutterfly 1,320 1,601 18.2% 15.5% 1.5x 1.4x 8.3x 7.0x NM NMShutterstock 1,089 910 19.6% 29.7% 2.1x 1.8x 10.9x 8.8x 27.8x 21.8xCoupons.com 733 460 13.1% 15.8% 1.8x 1.4x 13.5x 7.7x NM 25.5xRetailMeNot 447 288 25.5% (10.2%) 1.2x 1.2x 4.8x 4.5x 15.2x 15.5xOverstock 434 318 NA NA NA NA NA NA NA NABlue Nile 388 321 4.7% 3.1% 0.6x 0.6x 13.8x 12.7x 35.2x 30.1x


Online TravelThe Priceline Group 63,517 68,686 39.5% 10.1% 7.4x 6.3x 18.8x 15.6x 23.0x 19.0xAmadeus 18,552 21,271 37.6% 5.8% 4.9x 4.6x 13.0x 12.1x 22.4x 21.1xExpedia 17,039 17,006 18.0% 15.4% 2.6x 2.0x 14.2x 10.7x 26.7x 19.5xTripadvisor 10,039 12,529 31.7% 23.9% 8.1x 6.7x 25.7x 20.3x NM 32.1xCtrip 9,305 10,512 8.4% 44.6% 6.1x 4.5x NM 33.0x NM 36.2xSabre Corporation 7,648 10,421 31.7% 6.1% 3.5x 3.1x 11.1x 9.7x 26.1x 20.9xTravelport 1,648 4,048 24.0% 2.9% 1.8x 1.7x 7.6x 7.0x NM 20.9xMakeMyTrip 563 568 6.5% (5.1%) 3.7x 3.1x NM 25.5x NM NMTravelzoo 122 82 5.2% (9.1%) 0.6x 0.6x 12.0x 10.6x NM 35.4x


P / EEV / EBITDAEV / Revenue


13


PAGE |


14



Digital MarketingHomeAway 2,580 2,146 24.3% 12.2% 4.3x 3.7x 17.6x 14.4x NM NMCriteo 2,477 2,184 25.4% 50.9% 4.0x 3.1x 15.8x 11.0x 32.1x 22.5xCvent 1,383 1,154 10.5% 31.0% 6.2x 5.1x NM 41.6x NM NMMarketo 1,258 1,245 (10.3%) 41.6% 5.9x 4.5x NM NM NM NMCallidus Software 961 861 11.5% 25.3% 5.1x 4.4x 44.5x 30.9x NM NMConstant Contact 794 614 19.9% 12.2% 1.7x 1.4x 8.3x 6.6x 18.8x 14.5xThe Rubicon Project 620 573 15.1% 101.5% 2.3x 1.7x 15.4x 11.0x 33.3x 30.3xBazaarvoice 377 308 (2.5%) 7.8% 1.5x 1.4x NM 43.0x NM NMTechTarget 286 265 22.9% 13.2% 2.2x 2.0x 9.8x 7.9x 22.6x 17.6xHarte-Hanks 220 291 8.6% (11.1%) 0.6x 0.6x 6.8x 5.2x 15.5x 12.2xMarchex 173 66 9.5% (18.8%) 0.5x 0.5x 4.8x 5.3x 23.8x 29.8xDotdigital 161 149 28.4% 29.4% 3.9x 2.9x 13.9x 8.1x 23.3x 14.3xMatomy Media 153 172 9.7% 12.7% 0.6x 0.6x 6.6x 4.8x 9.2x 6.8xInternetQ 135 141 15.6% 19.9% 0.7x 0.6x 4.7x 3.7x 12.5x 7.8x1000mercis 132 130 21.9% 7.4% 2.1x 1.9x 9.6x 7.2x 17.9x 12.9xMarin Software 128 91 (11.3%) 7.6% 0.9x 0.8x NM NM NM NM


Content Providers / CommunitiesLinkedIn 25,275 23,522 22.8% 34.8% 8.0x 6.1x 34.9x 23.6x NM NMTwitter 17,104 17,906 24.1% 62.1% 8.0x 5.5x 33.2x 20.2x NM 48.1xPandora Media 4,428 3,852 6.9% 28.7% 3.3x 2.7x 47.2x 23.3x NM 46.5xGoPro 4,293 3,215 19.7% 41.5% 1.7x 1.4x 8.6x 7.2x 16.5x 14.3xJustEat 4,072 3,936 23.4% 54.0% 10.8x 8.1x 46.0x 28.7x NM 44.4xWebMD Health 1,430 1,770 29.8% 8.8% 2.8x 2.6x 9.4x 8.4x 27.8x 25.3xXING 1,131 1,041 30.7% 17.0% 7.4x 6.3x 24.2x 18.9x NM 38.3xXO Group 368 288 18.1% (1.6%) 2.1x 1.9x 11.5x 9.3x NM 32.7xBrightcove 164 151 4.2% 7.1% 1.1x 1.0x 27.1x 16.6x NM NMDemand Media 84 44 (4.5%) (21.7%) 0.3x 0.3x NM NM NM NM


Intermediation and ComparisonZillow 4,968 5,353 12.9% 104.7% 8.1x 6.4x NM 30.6x NM NMMoneysupermarket 2,780 2,639 39.8% 11.8% 6.1x 5.7x 15.4x 14.5x 22.7x 21.4xBankrate 1,037 1,308 27.8% (3.0%) 2.5x 2.4x 8.9x 8.6x 16.9x 16.0xGruppo MutuiOnline 345 384 17.0% 65.2% 3.0x 2.8x 17.4x 14.9x 16.9x 16.4xAngie's List 292 331 8.2% 12.0% 0.9x 0.9x 11.5x 7.9x 38.8x 19.6xeHealth 245 179 4.5% 1.0% 1.0x 0.9x 22.2x 12.7x 32.7x 31.2xLiquidity Services 226 147 7.7% (21.5%) 0.4x 0.3x 5.1x 5.9x 20.1x 22.0x


Online ClassifiedsRightmove 5,544 5,145 74.3% 16.1% 17.5x 15.8x 23.5x 21.1x 30.4x 26.7xSEEK 2,906 4,083 39.4% 2.2% 6.1x 5.3x 15.4x 13.7x 23.3x 20.8xSouFun 2,327 2,972 10.1% 26.2% 3.4x 2.6x 33.8x 19.6x NM 22.4xYelp 1,668 1,286 13.8% 45.1% 2.4x 1.8x 17.1x 11.1x NM 33.4x51job 1,565 1,235 32.4% 7.5% 3.8x 3.2x 11.6x 9.0x 18.0x 15.5xZoopla 1,340 1,330 42.2% 38.1% 7.2x 4.9x 17.0x 12.4x 25.7x 18.8xMonster 589 824 16.4% (6.1%) 1.1x 1.1x 6.9x 5.5x 17.3x 11.3xDice 402 492 29.2% (4.7%) 2.0x 1.9x 6.7x 6.4x 18.7x 15.8x



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Internet Services LendingClub 4,975 NM 12.7% 91.7% NA NA NA NA NM NMHomeAway 2,580 2,146 24.3% 12.2% 4.3x 3.7x 17.6x 14.4x NM NMWeb.com 1,087 1,589 27.5% (1.8%) 2.9x 2.7x 10.4x 9.5x 9.3x 8.3xXoom 979 794 10.5% 21.2% 4.2x 3.4x 39.6x 23.3x NM 41.4xLifeLock 823 570 12.3% 21.9% 1.0x 0.9x 8.0x 5.8x 15.7x 12.6xWix.com 720 703 5.9% 44.6% 3.5x 2.6x NM 21.1x NM NM


Educational Technology Graham 3,372 2,909 12.1% (23.4%) 1.1x 1.1x 8.8x 8.0x 22.4x 17.8x2U 1,580 990 (6.0%) 35.1% 6.7x 5.2x NM NM NM NMChegg 651 550 1.1% 0.2% 1.8x 1.9x NM 22.5x NM 36.2xK12 504 328 10.3% (2.2%) 0.4x 0.4x 3.5x 3.4x 22.4x 34.8xCambium Learning Group 218 341 NA NA NA NA NA NA NA NARosetta Stone 145 123 (9.2%) (16.8%) 0.6x 0.6x NM 16.7x NM NM

Mean 1.6% (1.4%) 2.1x 1.8x 6.2x 12.6x 22.4x 29.6xMedian 1.1% (2.2%) 1.1x 1.1x 6.2x 12.4x 22.4x 34.8x

Chinese Internet LeadersTencent 157,289 171,703 44.5% 22.6% 11.1x 8.5x 24.9x 19.9x 34.9x 26.4xBaidu 47,162 45,218 21.9% 34.1% 4.3x 3.2x 19.4x 15.1x 24.5x 19.3xNetease 14,787 13,575 33.2% 63.7% 4.5x 3.6x 13.4x 11.0x 17.1x 14.4x58.com 5,738 6,582 (46.3%) 159.2% 9.7x 5.9x NM NM NM NMAutohome 3,238 3,144 39.2% 64.4% 5.8x 4.4x 14.8x 12.0x 22.5x 17.7xYouku Tudou 3,128 2,906 (15.3%) 54.0% 2.9x 2.1x NM NM NM NMWeibo Corporation 2,364 2,374 13.6% 43.0% 5.0x 3.7x 36.7x 17.5x NM 24.6xSouFun 2,327 2,972 10.1% 26.2% 3.4x 2.6x 33.8x 19.6x NM 22.4xSina 2,199 1,703 7.0% 13.7% 2.0x 1.7x 28.2x 10.7x NM 27.7xSohu 1,604 1,536 9.6% 18.1% 0.8x 0.7x 8.1x 4.6x NM NMRenren 1,034 912 (110.1%) (22.4%) 12.9x 6.3x NM NM NM NMDangdang 479 265 (0.7%) 19.4% 0.2x 0.1x NM 4.5x NM 24.1x


Online GamblingBetfair 4,450 4,288 23.2% 16.5% 5.4x 4.9x 23.2x 21.0x 38.5x 33.5xPlaytech 4,161 3,414 39.7% 35.2% 4.6x 3.3x 11.7x 8.3x 16.3x 12.4xbwin.party digital entertainment 1,335 1,264 16.7% (4.1%) 1.9x 1.9x 11.4x 11.6x 25.5x 26.9x888 916 784 16.8% (3.0%) 1.8x 1.7x 10.5x 9.8x 20.0x 18.5x


Interactive EntertainmentActivision 23,372 23,628 34.4% (3.6%) 5.1x 4.7x 14.7x 12.8x 24.7x 21.2xElectronic Arts 21,663 19,754 30.0% 5.6% 4.5x 4.2x 14.9x 13.3x 26.0x 21.8xTake-Two Interactive Software 2,567 1,920 14.9% 18.6% 1.2x 1.2x 8.2x 6.7x 22.1x 20.8xUbisoft Entertainment 2,289 2,473 57.7% (24.9%) 1.8x 1.2x 3.2x 2.8x 18.7x 15.8xZynga 2,163 1,224 1.6% 10.4% 1.6x 1.5x NM 13.5x NM NM




15


(1)

(1) Xoom has entered into an agreement to be acquired by Paypal(2) bwin.party digital entertainment is in takeover talks to be acquired by GCV Holding

(2)

Energy, Power& Infrastructure

IndustrialsHealthcare & Life Sciences

Transportation & Logistics

Aerospace, Defense & Government

Services

Business Services

Building Products & Materials

Technology, Media & Telecom

Specialty Distribution

Consumer

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Capital IQ as of 15th October 2015, broker reports and various industry news outlets

17

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