Update on capital market activity in the payments industry Q1/2016

Hamburg, April 2016

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Agenda

1. Mergers & Acquisitions 2. Venture Capital

Update on capital market activity in the payments industry

© INNOVALUE

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In Q1/2016 62 transactions have been reported with a total disclosed volume of USD 4.7 billion M&A development Q1/2016

M&A market development

Median enterprise value multiples

16x 62

10

60

49

12 42

42

50

46

40

8

14.1

6

31.9

30 20

4 2

70

3.6

0 2015 Q1

4.7 1.6 2015 Q2

Number of transactions

10

Number of transactions

Disclosed value [USD billion]

32

0

2015 Q3

2015 Q4

2016 Q1

Disclosed value [USD billion]

14.5

14.7 13.1

14x 12x 10x

10.3

9.5

8x 6x 4x 2x 2012

3.7

2013

2.8 2014

Revenue multiple

3.5

3.7

2015

2016 Q1

EBITDA multiple

Source: INNOVALUE, Mergerstat M&A Database, Company websites © INNOVALUE

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Most of the targets come either from the US (52%) or from Europe (26%); most deals associated with payment acceptance companies Targets analysis (Q1/2016)

Targets by region

Targets by segment

2016Q1

2016Q1 11%

5% 2% 5%

2015

27%

2015

8%

11%

13%

52% 10% 26%

10% 8% 5%

8%

North America

Middle East, Africa (MEA)

Acceptance

Couponing/Loyalty

Data analytics

Europe

Australia

Money transfer

Security

Alter. systems

Asia

South America

Processing

Acquiring

Other1)

1) includes ATM, Commerce, Issuing Source: INNOVALUE, Mergerstat M&A Database, Company websites © INNOVALUE

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The purchase of Visa Europe by Visa Inc. has been the biggest M&A transaction; product expansion & technology enhancement major drivers Transactions and rationales 2015 Product / channel expansion Mar. 20151)

Jul. 20151)

Geographic expansion Dec. 20151)

Feb. 20151)

Oct. 20151)

was acquired by

was acquired by

was acquired by

was acquired by

was acquired by

USD 1,250m

USD 982m

USD 2,311m

USD 750m

USD 376m

Technology and talent Feb. 20151)

Apr. 20151)

Nov. 20151)

Europe was acquired by

USD 23,400m

Financial investment Aug. 20151)

Jan. 20151)

Jul. 20151)

Aug. 20151)

was acquired by

was acquired by

was acquired by

was acquired by

was acquired by

was acquired by

USD 117m

USD 600m

USD 574m

n.a.

USD 1,665m

USD 750m

1) Announcement date Source: INNOVALUE, Mergerstat M&A Database, Company websites © INNOVALUE

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Agenda

1. Mergers & Acquisitions 2. Venture Capital

Update on capital market activity in the payments industry

© INNOVALUE

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In Q1/2016 50 investments have been reported with a total disclosed volume of USD 382 million VC development (Q1/2016)

Market development1)

800

48

Disclosed value [USD million]

48

50

39

40

600 500 400 300

30 710

20 458

200

345

382

10

100 0

10%

100%

10% 10%

24%

50

Number of transactions

700

Financing rounds

2% 5%

17%

6% 19%

20% 2%

15%

3%

26%

6% 10%

2%

16%

19%

21%

6%

6%

12%

32%

33%

34%

2015 Q3

2015 Q4

2016 Q1 Seed

12% 21%

0

2015 Q2

2015 Q3

Number of investments

2015 Q4

2016 Q1

Disclosed value [USD million]

2015 Q2

Other

C

A

D

B

Venture

Source: INNOVALUE 1) Including both equity and debt funding deals © INNOVALUE

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Most of the investments are either in the US (52%), Europe (30%) or Asia (12%); alternative payments, security and acceptance with high attention Funded start-up analysis (Q1/2016)

Investments by region

Investments by segment

2016Q1

2016Q1 4%

6%

2% 12%

2%

4%

2015

34%

8%

52%

12%

2015

!

30% 14%

18% North America

Middle East, Africa (MEA)

Alternative systems

Couponing / Loyalty

Issuing

Europe

Australia

Security

Processing

Data analytics

Asia

South America

Acceptance

Other

ATM

Money transfer

Acquiring

Source: INNOVALUE © INNOVALUE

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The biggest financing rounds in Q1 2016 have been closed particularly by security, money transfer and alternative payment systems Investments (Q1/2016)

Top 10 Investments in Q1 2016 by disclosed value USD m Security

Series C

Other

Series A

Money transfer

Debt

Alternative payment systems

Series B

Security

Series B

27

Couponing / Loyalty

Series B

25

Alternative payment systems

Series C

10

Payment acceptance devices + software

Series B

10 12

Alternative payment systems

Series B

Payment acceptance devices + software

Series D

75 55

122 76

45 28 20 20 13

10 Source: Crunchbase, INNOVALUE

193 34 31

25 Most recent financing volume

Totel financing volume © INNOVALUE

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Kai-Christian Claus Managing Partner

Hamburg office

Mobile +49 (0) 163 413 1363 Email [email protected]

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Hamburg Office

Phone

Andreas Habersetzer Partner

London office

Mobile +44 (0) 795 735 8698 Email [email protected]

3 More London Riverside London, SE1 2RE United Kingdom

London Office

Phone

+49 (0) 40 413 036-0

+44 (0) 203 283 4327

www.innovalue.com

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