Ad tech perspective oct 2013

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The latest edition of our Advertising and Marketing Technology sector overview piece, looking at M&A and financing trends across the AdTech and marketing software sector.

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  • AC2012Net Rev. 24.1m, 22% increased in FY12 over FY11PositivesManagement Team
  • Deal size: Fermat & Moody’s: $200mDeal size: Chemistry & Publicis:£15mDeal size: seloger.com & 3i: €180mDeal size: Loot & DMGT: £45m
  • Crunchbase SearchSector Advertising -> Social Marketing -> After Jan 2012
  • Ad tech perspective oct 2013

    1. 1. Advertising And Marketing Technology Market overview and update For more information contact: Julie Langley Partner +44 (0) 20 7514 8247 jlangley@resultsig.com Mark Williams Director +44 (0) 20 7514 8242 mwilliams@resultsig.com Disclaimer: February 2014 This document has been produced by Results International Group LLP (“Results”) and is furnished to you solely for your information and may not be reproduced or redistributed, in whole or in part, to any other person. No representation or warranty (expressed or implied) is made as to, and no reliance should be placed on, the fairness, accuracy or completeness of the information contained herein and, accordingly, none of Results‟ officers or employees accepts any liability whatsoever arising directly or indirectly from the use of this document.
    2. 2. Contents 01 About Us 02 Market Landscape 03 Public Markets Environment 1
    3. 3. Corporate Finance Advisors to the Adtech, Software & Marcoms Sectors An established team of sector experts… …with global reach • Results International is a market-leading M&A advisory firm founded in 1991 • Entrepreneurial and owner-managed • 40 person global team with over 250 completed transactions • Senior level attention on all transactions Selected clients and transaction counterparties Sector specialism (1) Adtech Software Marketing Services Digital Media (1) Some clients were advised by Results International Partners at prior firms 2
    4. 4. Selected Team Members- UK Keith Hunt Managing Partner • Joined Results in 2005 Previously Head of M&A at Ernst & Young • 20+ years experience in corporate finance, including M&A, fundraising, IPOs, JVs, MBOs and MBIs • Clients include The Group, Figtree, Monitor Media, Spannerworks, Flip Media, Transactis, Punktilio, Flamingo, Brand X, and AIA Julia Crawley-Boevey Director • • Andy Collins Senior Partner Joined Results in 2010 having spent over four years at BDO where she worked in both Audit and Corporate Finance Clients include The Group, Blue Rubicon, Virgo Health, Incite, and Crayon Joined Results in 2005 and has completed over 50 transactions, raised £150m of funding from private equity and the Capital Markets and provided strategic advice to a wide range of businesses • Clients include Abacus, Retail Eyes, Bridgehead International, Chemistry Communications, Latitude, and Total Healthcare Group • Mark Williams Director • • Joined Results in 2012. He started his career at KPMG working in Financial Services M&A and moved to Ingenious Corporate Finance in 2010 Clients include Staffcare, Moonpig, St Ives, and Inflexion Jim Houghton Partner Julie Langley Partner • Joined Results in 2010, with over 10 years of M&A experience • Joined Results in 2012 to lead the tech and digital media practice • Prior to joining Results Jim led European M&A activity for the marketing services division of Omnicom (DAS) • • Clients include We are Social, Blue Rubicon, Virgo Health, Crayon, Iris, and United News & Media plc 15 years M&A experience at Broadview then Jefferies, advising tech and digital media companies on M&A and fundraising • Advised on transactions with Oracle, Microsoft, Experian, Moody‟s, IAC, Axel Springer, DMGT, and BT, amongst others Anthony Harrington Manager • • Joined Results in 2013, has experience in healthcare focused corporate finance at Bear Stearns, Rothschild and Investec Clients include Enteq Upstream PLC, Arena Leisure PLC, Busy Bees and Protherics PLC James Kesner Manager • Joined Results in 2013 from Kingston Smith • ACA qualified, has previously worked as a Finance Director for a London based brand consultancy • Previous clients include ID magazine, Not to Scale, Writtle, Adam and Eve 3
    5. 5. Selected Team Members - International US Team Pierre-Georges Roy Partner Maurice Watkins Partner • Co-founded GroupArgent in 2005. Closed $4.0 billion in cross-border transactions including several Canada-US • Co-founded GroupArgent in 2005 and has closed over 35 transactions totaling $0.75 billion • Experience includes advising Hunt Mobile Advertising on its transaction with Opera Mediaworks, Telesystem International Wireless (NASDAQ: TIWI) sold to Vodafone, and buyout and exit representation for Canadian firms Caisse de Dépôt and Wynnchurch • Experience includes advising Hunt Mobile Advertising on its transaction with Opera Mediaworks • Prior to GroupArgent, Maurice worked at the Zanett Group, Morgan Stanley and IBM Hemavli Bali Executive Director • Joined Results in 2008 and has 13 years working in financial services, with over 8 years of experience as a corporate finance specialist • Previously worked at Nomura, Royal Bank of Canada and Ernst & Young • Clients include Abacus, Total Healthcare Group, Synergy, D2D and Retail Eyes Asia Team Andrew Kefford Managing Partner – Asia Pacific & MENA • Long career in marketing sector (Ogilvy & Mather, The Ball Partnership) • Managed the acquisition of SMART to McCann Worldgroup, CCG by Publicis Group to establish Digitas China, CIC by Kantar Media and The Upper Storey by Isobar Imad Kublawi Regional Partner – MENA • • 27 years experience in the advertising sector, including as COO of JWT's Middle East Network Joined Results International in 2008 and has since been engaged in a number of buy and sell mandates Chris Beaumont Managing Partner – North Asia • 16 years of experience consulting in Asia • For 10 years Chris was with McCann-Erickson in Asia; he was both Vice-Chairman of its operations in Tokyo and Chief Strategy Officer for WorldGroup across Asia Sunil Gupta Area Liaison – South Asia • Spent 24 years at Hindustan Thompson (part of JWT), the largest ad agency in India • Other roles include COO at RK Swamy/BBDO and as advisor to companies in India, Pakistan & Dubai 4
    6. 6. Selected Transactions Across Technology, Marcoms & Digital Media has been acquired by is joining has been acquired by has been acquired by has been acquired by has been acquired by has invested in has been acquired by has been acquired by has been acquired by has been acquired by has been acquired by has been acquired by has been acquired by has been acquired by has been acquired by has been acquired by has completed a joint venture with NOTE: Certain transactions were advised on by RI’s Partners at previous firms. 5
    7. 7. Content 01 About Us 02 Market Landscape 03 Public Markets Environment 6
    8. 8. Marketing Technology Landscape – Illustrative Companies Marketing Automation Social CRM / Social Software / Data eCommerce Tech Advertising Platforms Mobile Video Measurement & Optimisation Subsegments • • • • Omnichannel Campaign Management Marketing Automation Lead Management Email Marketing • • • • • eCommerce Platforms Recommendation Software Personalisation Software eCommerce Logistics Content Management • • • • • • Social Media Tools Ratings & Reviews Monitoring & Intelligence Analytics Customer Service Solutions Enterprise social networking • • • • • • Ad Network and Exchanges DSPs/SSPs/DMPs Programmatic Trading Space Targeting/Retargeting Tracking, Tag Management Attribution Optimisation • • • • • Mobile Marketing Mobile App Platforms Mobile DSPs Mobile Ad Management/Ad Serving mCommerce • • • • • • OVP‟s Video Sharing Video Commerce/ Marketing Video Creation Tools Video Ad Networks Video Search Engines Diversified Vendors Selected Representative Companies 7
    9. 9. Advertising Platforms Landscape – Illustrative Companies Supply side platforms (SSPs) Ad Exchanges & Ad Servers Ad Networks Data Management Platforms (DMPs) Demand side platforms (DSPs) Supply side Agency buying desks Demand side RTB Focus Commonly known as yield managers/optimisers Technology / marketplaces to connect publishers and advertisers and advertisements on websites Enable the publishers of the website they Represent to sell more Inventory Data providers and data management Platforms (DMP) Technology for media buyers aggregate, bid on and optimize digital inventory across multiple sources Specialised entities of media buying agencies focusing on media trading and RTB 8
    10. 10. Strength Of The Global M&A Ad Tech Market 100 90 80 (# Deals) 70 60 50 40 78 61 30 20 49 43 36 32 34 Q3 2008 Q4 2008 10 26 34 55 43 78 89 88 65 48 Q4 2010 77 68 59 49 45 Q3 2010 64 73 70 0 Q1 2008 Q2 2008 Q1 2009 Q2 2009 Q3 2009 Q4 2009 Q1 2010 Q2 2010 Q1 2011 Q2 2011 Q3 2011 Q4 2011 Q1 2012 Q2 2012 Q3 2012 Q4 2012 Q1 2013 Q2 2013 Q3 2013 Q4 2013 Sources: Press releases, CapitalIQ, Corpfin, and Results’ Analysis  Adtech consolidation continues at pace – however there is substantial VC funding going into the sector and the number of new start-ups is outpacing the number of acquisitions (Source: Luma Partners)  Key M&A drivers: - Established players have been acquiring new capabilities/ technologies to extend their existing product suites - Large internet conglomerates and technology companies continue to compete to remain „on top‟ of new tech innovations and are competitively scouring the market for the best start-ups and talent - Yahoo, in particular, was a prolific acquirer in 2013 making over 30 acquisitions  The IPO market has recently opened for adtech including RocketFuel, Criteo and YuMe, however these parties have yet to use their currency to pursue acquisitions - As many of the recently IPO‟d companies have large operating losses and without profitability in sight, these companies are unlikely to make significant acquisitions unless a deal is highly strategic 9
    11. 11. Selected Recent Deal Activity Marketing Automation Social CRM / Social Software EV ($m) EV/REV Description Nov-13 n.a. n.a. Social analytics platform CRM and marketing automation solutions Oct-13 35 n.a. Social advertising and analytics platform 7.5x Content marketing start-up Oct-13 n.a. n.a. "Billboard", social ads to promote products n.a. n.a. Marketing automation & demand generation Jul-13 n.a. n.a. Social media monitoring company Jun-13 600 10.3x Cross-channel campaign management Jun-13 n.a. n.a. Platform for conducting social media analysis Jun-13 2,562 8.1x Cloud-based marketing automation May-13 n.a. n.a. Social commerce platform May-13 344 7.2x Lead generation and conversion software Apr-13 n.a. n.a. Social media listening and compliance n.a. n.a. App for SMEs to create email & mobile marketing campaigns Feb-13 c.75 n.a. Social media monitoring for TV shows & commercials May-13 n.a. n.a. Web-based email marketing system Jan-13 n.a. n.a. Social media marketing suite for SMBs Dec-12 871 9.2x(1) Cloud-based marketing automation Aug-12 40 n.a. Social media advertising services Sep-12 n.a. n.a. Behavioural targeting & predictive analytics Jul-12 350 n.a. Social media marketing software Oct-12 96 8.6x SaaS marketing automation platform Jun-12 1,200 n.a. Enterprise social networking Oct-12 n.a. n.a. Marketing automation software Jun-12 n.a. n.a. Social media monitoring Intelligence May-12 150 4.3x Digital messaging platform Jun-12 745 c. 19x(2) Social media marketing suite Mar-12 n.a. n.a. Marketing automation solution for Microsoft May-12 166 13.9x Rating and reviews software EV ($m) EV/REV Description Date 1,497 7.7x Software to orchestrate marketing interactions n.a. n.a. Oct-13 15 Aug-13 Date Buyer Target Dec-13 Oct-13 May-13 (1) (2) Ellie Mae Swisscom MortgageCE O Tweasy Buyer Target Eloqua was on a revenue run rate of approx. $95m, 9.2x is the run rate revenue multiple BuddyMedia generated approx. $25 million revenue in CY2011 (up 250% year-on-year). Based on Salesforce.com’s statements, the TTM revenue at the time of the deal was approx. $40 million 10
    12. 12. Selected Recent Deal Activity Mobile Technology Video Technology EV ($m) EV/REV Description Jan-14 49(3) 9.8x Video advertising technology Technology to target display ads to audiences & locations Dec-13 55(4) 2.2x Mobile video advertising technology platform n.a. Mobile data analytics platform Oct-13 n.a. n.a. Social artery for video news, inspiration and leading voices 15 n.a. Mobile personalisation and native advertising technology Sep-13 n.a. n.a. Online video demand side platform Oct-13 n.a. n.a. Cloud-based mobile messaging tools Aug-13 490(5) n.a. TV advertising distribution unit of Digital Generation Sep-13 350 n.a. Ad inventory management platform for mobile publishers Aug-13 405 n.a. Video advertising platform Sep-13 n.a. n.a. Real-time bidding platform for mobile ads Aug-13 n.a. n.a. Video content syndication and advertising platform Aug-13 209(2) n.a. Mobile ad network - targeted advertising May-13 n.a. n.a. Platform for social video advertising Aug-13 n.a. n.a. US assets of mobile marketing and software company Apr-13 n.a. n.a. Video advertising network Jul-13 n.a. n.a. Mobile marketing technology and services Mar-13 n.a. n.a. Video advertising network Jul-13 n.a. n.a. Personalized, hyper-local targeted offers on mobile Jan-13 n.a. n.a. In-stream video advertising optimization Jul-13 n.a. n.a. Mobile advertising targeting Dec-12 n.a. n.a. Video and mobile ad technology provider Jul-13 n.a. n.a. Monitors advertising performance on apps Oct-12 n.a. n.a. Video advertising network Jun-13 n.a. n.a. Mobile app focused on location and check-in space Mar-12 13 1.4x Video advertising network May-13 3 n.a. Platform that operates in mobile local search & ads Jan-12 n.a. n.a. „InPlay‟ Video analytics solutions from TubeMogul EV ($m) EV/REV Description Date Jan-14 n.a. n.a. Mobile marketing business in India, UK and US Jan-14 n.a. n.a. Oct-13 200(1) Oct-13 Date (1) (2) (3) Buyer Target Total deal size is reportedly between $100-200m Jumptap shareholders received 24.6m of Millennial Media shares, this EV is based in August 14 th share price of $8.5 Consideration consists of 3m of Brightcove stock and $9m in cash (4) (5) Buyer Target A further $10m of consideration is payable to employees and management as incentive and retention payments payable over 12 months EV includes extra consideration of $5m which is contingent on further investment not being required for the new company post acquisition 11
    13. 13. Selected Recent Deal Activity Ecommerce Technology Advertising Platforms EV ($m) EV/REV Description Date EV ($m) EV/REV Description Nov-13 n.a. n.a. CXM platform with integrated e-commerce engine Dec-13 3 n.a.(1) Advertising solutions to match advertisements to content Oct-13 n.a. n.a. SaaS logistics and supply chain management for eCommerce Nov-13 n.a. n.a. RTB buy side platform Oct-13 n.a. n.a. Customer-centric eCommerce solution Nov-13 n.a. n.a. Technology in programmatic, desktop RTB trading Oct-13 n.a. n.a. eCommerce personalisation technology Nov-13 40 n.a. Demand side platform Aug-13 n.a. n.a. eCommerce solutions provider Oct-13 119 n.a. Data management platform Aug-13 1 0.7x eCommerce solutions provider Oct-13 1(2) n.a. Ad platform for rich media advertisements Jul-13 n.a. n.a. Tag management technology Oct-13 n.a. n.a. Self-serve advertising platform and dynamic creative vendor Jul-13 n.a. n.a. eCommerce app platform Sep-13 n.a. n.a. Advertising platform Jun-13 n.a. n.a. eCommerce platform that places promotions (Buy Now) Aug-13 n.a. n.a. Digital advertising distribution technology Jun-13 n.a. n.a. eCommerce fulfilment technology Aug-13 13(3) n.a. Demand side platform Jun-13 1,351 10.8x eCommerce software Jul-13 n.a. n.a. Native advertising platform Jun-13 n.a. n.a. Commerce and order management platform Jul-13 n.a. n.a. Online ad network active in programmatic buying space May-13 n.a. n.a. Big data company for optimisation of online discounts Jul-13 2 n.a. Supply side platform May-13 284 2.0x Digital marketing and eCommerce company Jun-13 n.a. n.a. Certain IP assets of adBrite‟s ad exchange May-13 n.a. n.a. Recommendation engine and online personalisation Jun-13 n.a. n.a. Premium advertising platform Date (1) (2) (3) Buyer Target Buyer Target EV / TTM EBIT multiple of 2.2x Further consideration of up to $13.1m is available based on Republic Project reaching revenue and adjusted EBITDA performance targets in 2014 and 2015 Valuation reportedly ranges from $10-15m 12
    14. 14. Content 01 About Us 02 Market Landscape 03 Public Markets Environment 13
    15. 15. Valuation Benchmarks Revenue growth (13-14E) EV/REV 2014E 7.0x 38% 40% 6.4x 35% 6.0x 30% 5.0x 4.0x 21% 20% 4.2x 4.0x 25% 17% 3.4x 18% 3.0x 15% 2.5x 15% 9% 10% 1.4x 1.0x 4% 5% 1.9x 2.0x 0.0x 0% Diversified Internet Marketing Technology Video Mobile Social CRM Diversified Agencies Diversified Internet Enterprise Software Marketing Technology EBITDA Margins 2014E Mobile Social CRM Diversified Agencies Enterprise Software EV/EBITDA 2014E 35% 30% Video 20.0x 30% 28% 18.6x 18.0x 16.0x 26% 25% 14.3x 14.0x 12.9x 12.3x 11.5x 12.0x 20% 9.2x 10.0x 16% 15% 8.0x 12% 6.0x 10% 4.0x 5% 3% 2.0x N/A 0% 0% n.a. 0.0x Diversified Internet Marketing Technology Video Mobile Social CRM Diversified Agencies Enterprise Software Diversified Internet Marketing Technology Video Mobile Social CRM Diversified Agencies Enterprise Software Notes: EV = Enterprise Value; Calendarised to December year end Source: Capital IQ and Analyst Reports Note – see appendix for details of companies included in each category 14
    16. 16. IPO Case Studies IPO Company Current Trading IPO Date IPO Share Price Valuation Current Share Price % Change Since IPO High Since Trading Low Since Trading Current EV EV/Rev 2014E EV/EBITDA 2014E November 2013 0.96 1.22 28% 1.50 0.68 168 n.a. n.a. October 2013 31.00 46.84 51% 47.16 28.27 2,357 9.5x n.m. September 2013 29.00 53.25 84% 71.89 37.81 1,779 7.5x n.m. August 2013 9.00 6.95 (23%) 12.08 5.86 172 1.8x 17.0x June 2013 10.00 4.29 (57%) 11.09 3.59 120 1.9x n.m. May 2013 13.00 39.87 207% 45.00 17.20 1,444 10.7x n.m. March 2013 14.00 11.56 (17%) 19.95 8.50 279 2.9x n.m. AIM Nasdaq Nasdaq NYSE NYSE Nasdaq NYSE $ millions, except share price data Source – Capital IQ, Market Data as of 24th February 2014; Note – Calendarised to December year end 15
    17. 17. Contact Us Julie Langley Mark Williams Partner Director Di: +44 (0) 20 7514 8247 E: jlangley@resultsig.com Di: +44 (0) 20 7514 8242 E: mwilliams@resultsig.com 27 Soho Square, London, W1D 3AY t +44 20 7629 7575 | f +44 20 7629 2233 www.resultsig.com 16
    18. 18. Content Appendix 17
    19. 19. Selected Publicly Traded Companies usd millions, except per share data Company Price (24-Feb-14) Market Cap Net Debt Enterprise Value 1,212.51 37.42 43.70 70.78 199.59 351.78 56.30 407,465 37,960 3,615 180,471 24,057 161,560 73,260 (50,915) (2,125) (85) (10,973) (2,324) (6,311) (4,902) 356,550 35,835 3,529 169,498 21,732 155,249 68,358 Revenue CY2014 CY2015 Valuation Metrics EBITDA CY2014 CY2015 Operating Metrics Revenue Growth CY13-14 CY14-15 EBITDA Margin CY2014 CY2015 Diversified Internet Google Inc. Yahoo! Inc. AOL Inc. Facebook, Inc. LinkedIn Corporation Amazon.com Inc. eBay Inc. 5.5 x 7.7 x 1.9 x 11.5 x 7.7 x 1.4 x 3.3 x 14.7 x 32.0 x 6.7 x 25.1 x n.m. 22.5 x 11.4 x 11.6 x n.m. 6.4 x 19.1 x 28.5 x 17.0 x 10.1 x 17.4% 2.6% 2.2% 43.6% 38.5% 20.6% 13.8% 16.8% 2.1% 0.5% 30.8% 33.8% 19.8% 14.5% 43.4% 24.7% 27.9% 59.7% 24.5% 7.7% 32.8% 46.9% 2.7% 29.1% 60.1% 26.9% 8.5% 32.4% 2.8 x 6.4 x 9.1 x 25th percentile Median 75th percentile 6.4 x 7.9 x 1.9 x 15.0 x 10.3 x 1.7 x 3.7 x 2.6 x 5.5 x 7.7 x 12.2 x 18.6 x 24.5 x 10.5 x 14.3 x 18.5 x 8.2% 17.4% 29.6% 8.3% 16.8% 25.3% 24.6% 27.9% 38.1% 17.7% 29.1% 39.7% Marketing Technology Experian plc Marin Software Incorporated 18.49 11.56 17,984 377 3,314 (98) 21,298 279 4.1 x 2.9 x 3.8 x 2.4 x 12.0 x n.m. 11.0 x n.m. 7.1% 23.8% 7.3% 19.8% 34.2% (24.5%) 34.6% (15.4%) LivePerson Inc. Demandware, Inc. Vocus Inc. Digital River Inc. Interactive Intelligence Group Inc. Constant Contact, Inc. Marketo, Inc. Rocket Fuel Inc. Criteo SA PROS Holdings, Inc. 13.65 73.88 13.23 18.06 76.45 27.53 39.87 53.25 46.84 39.11 739 2,556 280 591 1,546 844 1,565 1,866 2,663 1,164 (92) (275) 44 (304) (98) (123) (121) (86) (306) (91) 647 2,281 324 288 1,448 721 1,444 1,779 2,357 1,073 3.2 x 15.8 x 1.8 x 0.8 x 4.0 x 2.2 x 10.7 x 7.5 x 9.5 x 6.1 x 2.8 x 11.1 x 1.7 x 0.7 x 3.4 x 2.0 x 8.1 x 4.7 x 7.2 x 5.1 x 29.8 x n.m. 14.3 x 5.7 x n.m. 12.3 x n.m. n.m. n.m. n.m. 23.6 x n.m. 12.1 x 5.2 x n.m. 10.1 x n.m. n.m. 26.5 x 30.0 x 13.5% 39.1% (2.2%) (4.0%) 15.2% 13.2% 40.2% 74.3% 38.8% 21.4% 14.3% 42.8% 3.1% 3.4% 17.1% 12.7% 32.1% 59.2% 31.2% 20.3% 10.8% 2.8% 12.4% 13.4% 5.9% 18.2% (28.0%) 1.8% 19.8% 16.3% 11.9% 6.8% 14.1% 14.3% 5.3% 19.7% (14.3%) 10.3% 27.3% 16.9% 2.7 x 4.0 x 8.0 x 2.3 x 3.6 x 5.6 x 12.0 x 12.3 x 14.3 x 10.5 x 12.1 x 25.0 x 11.7% 18.3% 38.8% 11.4% 18.5% 31.4% 2.5% 11.6% 16.8% 6.5% 13.0% 17.6% 1.8 x n.a. 4.6 x 1.9 x 1.8 x 1.6 x n.a. n.a. 1.4 x 1.4 x n.m. n.a. 11.6 x n.m. 17.0 x n.m. n.a. n.a. 13.7 x 8.3 x 16.9% n.a. 21.3% 20.6% 28.3% 16.3% n.a. n.a. 33.1% 30.3% (5.3%) n.a. 39.7% (11.6%) 10.9% 0.0% n.a. n.a. 10.2% 17.1% 1.8 x 1.9 x 2.5 x 1.4 x 1.4 x 1.5 x 12.9 x 14.3 x 15.6 x 9.6 x 11.0 x 12.3 x 19.7% 21.0% 23.1% 23.3% 30.3% 31.7% (6.9%) 2.8% 18.1% 5.1% 10.2% 13.6% 25th percentile Median 75th percentile Video Brightcove, Inc. Rightster Group Plc Blinkx plc Tremor Video, Inc. YuMe, Inc. 25th percentile Median 75th percentile See Slide 20 for sources and notes 9.38 1.22 1.76 4.29 6.95 270 142 721 213 235 (36) 25 (69) (93) (63) 234 168 652 120 172 18
    20. 20. Selected Publicly Traded Companies usd millions, except per share data Company Price (24-Feb-14) Market Cap Net Debt Enterprise Value 6.08 13.39 646 1,771 (99) (163) 547 1,607 Revenue CY2014 CY2015 Valuation Metrics EBITDA CY2014 CY2015 Operating Metrics Revenue Growth CY13-14 CY14-15 EBITDA Margin CY2014 CY2015 Mobile Millennial Media Inc. Opera Software ASA 2.1 x 3.1 x 12.2 x 13.6 x 6.5 x 10.4 x 40.4% 36.4% 36.5% 26.3% 23.7% 28.9% 32.7% 30.0% 3.1 x 3.4 x 3.7 x 2.4 x 2.6 x 2.9 x 12.5 x 12.9 x 13.2 x 7.4 x 8.4 x 9.4 x 37.4% 38.4% 39.4% 28.8% 31.4% 33.9% 25.0% 26.3% 27.6% 30.6% 31.3% 32.0% 2.4 x 2.7 x 2.1 x 2.3 x n.m. n.m. n.m. n.m. 12.3% 18.4% 13.8% 18.3% (3.5%) (8.2%) 4.3% (1.5%) 2.5 x 2.5 x 2.6 x 25th percentile Median 75th percentile 2.9 x 3.9 x 2.2 x 2.2 x 2.2 x n.a. n.a. n.a. n.a. n.a. n.a. 13.8% 15.4% 16.9% 14.9% 16.0% 17.2% (7.0%) (5.8%) (4.7%) (0.0%) 1.4% 2.8% 0.5 x 1.3 x 1.1 x 1.4 x 1.9 x 1.9 x 0.5 x 1.3 x 1.1 x 1.4 x 1.8 x 1.8 x 8.8 x 7.9 x 8.8 x 9.7 x 10.1 x 10.6 x 8.5 x 7.5 x 7.6 x 8.5 x 9.4 x 9.8 x 7.3% 2.7% 4.2% 3.9% 5.1% 4.4% 3.5% 3.4% 4.4% 4.6% 5.8% 5.4% 5.6% 16.4% 13.0% 14.8% 18.5% 17.5% 5.6% 16.9% 14.2% 16.1% 18.9% 17.9% 1.2 x 1.4 x 1.7 x 1.1 x 1.3 x 1.7 x 8.8 x 9.2 x 10.0 x 7.8 x 8.5 x 9.2 x 4.0% 4.3% 4.9% 3.7% 4.5% 5.2% 13.4% 15.6% 17.2% 14.7% 16.5% 17.7% Social CRM / Social Software Bazaarvoice, Inc. Jive Software, Inc. 7.34 8.15 546 564 (75) (100) 472 464 25th percentile Median 75th percentile Diversified Agencies Dentsu Inc. 38.31 Havas 8.55 The Interpublic Group of Companies, Inc. 17.17 Omnicom Group Inc. 75.85 Publicis Groupe SA 94.67 WPP plc 22.46 25th percentile Median 75th percentile See Slide 20 for sources and notes 11,047 3,513 7,281 19,716 19,558 30,770 241 (236) 1,147 1,999 (748) 4,966 11,288 3,277 8,428 21,714 18,810 35,736 19
    21. 21. Selected Publicly Traded Companies Cont. usd millions, except per share data Company Price (24-Feb-14) Market Cap Net Debt Enterprise Value 7.15 32.67 68.77 126.13 29.31 63.91 38.14 37.69 79.94 77.41 51.46 7,860 1,489 34,435 7,191 2,601 39,657 177,190 312,978 95,405 22,409 6,321 599 141 (1,660) (191) (228) 1,754 (12,330) (59,297) 2,084 (832) 31 8,459 1,630 32,775 6,999 2,374 41,411 164,860 253,681 97,489 21,577 6,351 Revenue CY2014 CY2015 Valuation Metrics EBITDA CY2014 CY2015 Operating Metrics Revenue Growth CY13-14 CY14-15 EBITDA Margin CY2014 CY2015 Enterprise Software Sage Group plc Blackbaud Inc. Adobe Systems Inc. Concur Technologies, Inc. Qlik Technologies, Inc. Salesforce.com, Inc Oracle Corporation Microsoft Corporation SAP AG Intuit Inc. Open Text Corporation 25th percentile Median 75th percentile 3.7 x 2.9 x 7.9 x 9.6 x 4.3 x 8.1 x 4.2 x 2.9 x 4.0 x 4.7 x 3.6 x 3.5 x 2.7 x 6.6 x 7.7 x 3.7 x 6.5 x 4.0 x 2.7 x 3.7 x 4.3 x 3.2 x 12.2 x 15.6 x 29.5 x n.m. n.m. n.m. 8.2 x 7.8 x 11.0 x 11.7 x 11.3 x 11.4 x 12.2 x 18.8 x n.m. n.m. n.m. 7.7 x 7.4 x 10.3 x 10.7 x 9.6 x 0.8% 9.9% 2.2% 25.7% 16.9% 29.5% 4.3% 8.8% 6.1% 7.8% 18.5% 5.2% 7.7% 20.3% 23.7% 17.2% 23.0% 4.5% 6.7% 6.9% 7.9% 13.0% 30.0% 18.9% 26.8% 16.5% 7.7% 16.7% 51.1% 36.8% 36.0% 39.8% 31.8% 30.6% 22.5% 35.0% 17.6% 9.6% 17.0% 51.5% 36.5% 36.2% 40.3% 33.2% 3.6 x 4.2 x 6.3 x 3.3 x 3.7 x 5.4 x 10.3 x 11.5 x 13.1 x 9.1 x 10.5 x 11.6 x 5.2% 8.8% 17.7% 6.8% 7.9% 18.8% 17.8% 30.0% 36.4% 20.0% 33.2% 36.4% Sources: Net revenues have been used where appropriate Yahoo – financials taken from Credit Suisse (January 2014), market data taken from CapitalIQ Google – financials taken from Credit Suisse (January 2014), market data taken from CapitalIQ AOL – financials taken from Deutsche Bank (February 2014), market data taken from CapitalIQ Rocket Fuel – financials taken from Credit Suisse (February 2014), market data taken from CapitalIQ Criteo – financials taken from Deutsche Bank (February 2014), market data taken from CapitalIQ Tremor Video – financials taken from Credit Suisse (November 2013), market data taken from CapitalIQ Millennial Media – financials taken from Morgan Stanley (January 2014), market data taken from CapitalIQ YuMe – financials taken from Deutsche Bank (November 2013), market data taken from CapitalIQ Dentsu - financials taken from Morgan Stanley (January 2014), market data taken from CapitalIQ Blinkx - financials taken from Jefferies (January 2014), market data taken from CpaitalIQ For all other companies – financials and market data taken from CapitalIQ Note: Financials calendarised to December year end, market data as at 24 February 2014 20

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