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European Technology Update

Member FINRA/SIPC

European Technology Update17 August 2011

Thierry MonjauzeThierry MonjauzeManaging Director63 Brook StreetLondon W1K 4HSUnited KingdomPhone: +44 20 7518 [email protected]

Francois MorinDirector63 Brook Street

www.harriswilliams.comThis report has been prepared by Harris Williams & Co. Ltd and approved by Sturgeon Ventures LLP in accordance with Conduct Of Business rules COBS 4 of the FSA Handbook.

Harris Williams & Co. Ltd is an authorised representative of Sturgeon Ventures LLP which is Authorised and Regulated by the Financial Services Authority. This report is being made by Harris Williams & Co. Ltd. Investment banking services are provided by Harris Williams LLC, a registered broker-dealer and member of FINRA and SIPC, and Harris

Williams & Co. Ltd. Harris Williams & Co. is a trade name under which Harris Williams LLC and Harris Williams & Co. Ltd conduct business in the U.S. and Europe, respectively.

63 Brook StreetLondon W1K 4HSUnited KingdomPhone: +44 20 7518 [email protected]

Recent Developments

Google announced the acquisition of Motorola Mobility for $12.5 billion. The companies expect to complete the deal by early 2012, pending approval from stockholders and regulatory agencies in US and EUTime Warner Cable acquired Insight Communications from Carlyle Group for $3 billionAdvent International acquired the Card Systems and Identity divisions of Oberthur for €1.2 billionDomain name registrar Network Solutions was acquired by Web.com Group for $560 millionValueClick acquired the dynamic display ad optimization firm Dotomi for $295 million

p

Company Specific

News

Plimus, provider of e-commerce solutions, has been acquired by Great Hill Partners for $115 millionTelecity Group acquired Data Electronics, an Ireland-based IT services and data centre provider, for £88 millionAugme Technologies acquired HipCricket, a company engaged in mobile marketing and advertising, for $70 millionNetzathleten, a Germany-based web portal operator, was acquired by RTL for €20 million comScore acquired AdXpose, a venture-backed online ad verification and optimization company, for $22 millionHTC acquired Dashwire, a mobile web-connected services platform for mobile operators, for $18.5 millionRed Bee Media acquired TV Genius, a UK-based content discovery platform for personalisation of TV guides, for an estimated £8 millionAllocate Software has acquired Zircadian, the UK-based SaaS provider of software and consultancy services for managing hospital doctors in the NHS, for £7 millionmanaging hospital doctors in the NHS, for £7 millionPlatinum Equity has acquired publishing software maker QuarkTelx Group, a provider of global interconnection and colocation facilities, has been acquired by ABRY Partners and Berkshire Partners HomeSav.com acquired SnappyTuna.com, a members-only online retailer of luxury home decor and furniture itemsTwitter has raised an estimated $800 million in a funding round led by DST Global in a deal that values the firm at $8.4 billion Storm8, a developer of mobile phone games, is reportedly raising $300 million in a deal that values it at $1 billionZulily, a daily deal site focused on boutique brands for moms, has raised $43 million from Meritech Capital PartnersBloomspot, a company that aims to connect merchants with customers via online offers, has raised $40 million from

i i t i l di W t T h l I t tvarious investors including Western Technology Investment Trendyol.com, a fashion e-commerce company based in Turkey, has raised $26 million from Kleiner PerkinsDaily coupons website Groupalia raised $26 million in a round which included Nauta Capital, Caixa Capital Risc, General Atlantic, Insight Venture Partners, Index Ventures as well as private investorsCedexis, a community-based cloud performance monitoring and optimization platform, raised $6 million from Madrona Venture GroupBrightTag, a startup that manages advertisers' technical connections to various online ad vendors, has raised $5 million, from New World VenturesEscher Group, the US-based provider of postal sales systems, will list on the AIM to raise £15.4 millionCisco's quarterly earnings fell 36% as the networking giant's weaker margin offset a modest revenue increase

Worldwide mobile connections will hit 5.6 billion this year, according to Gartner85% of US marketers are expected to use social media sites for advertising over the next 12 months, according to Pivot Conference 47% of online consumers will redeem digital coupons this year, according to eMarketerMore than 33 million US consumers use their smartphones for shopping, according to Experian Simmons

q y g g g gLinkedIn's second-quarter profit grew 5.1% on strong revenue growth as the site added new premium subscribersGroupon’s losses almost tripled year-on-year to $102.7 million for the quarter ending June

Industry Trends

Google+ has attracted 25 million visitors last month, making it the fastest-growing social network, according to IDCUS online video ad spending is expected to reach $2.2 billion this year, according to eMarketerSince the beginning of 2008, private equity investors have taken 129 public companies private, according to PitchBookApple shipped 20 million iPhones globally in the second quarter, more than any of its competitors, according to IDCUK music revenues declined 4.8% to £3.8 billion in 2010, with growth in digital sales continuing to fail to offset the fall in physical revenues, according to PRSGlobal tablet computer shipments will hit 158 million units in 2011, up substantially from 100 million in 2010, according to IHSMobile data services revenue will total $315 billion in 2011 a 23% increase from 2010 according to GartnerMobile data services revenue will total $315 billion in 2011, a 23% increase from 2010, according to GartnerTotal advertisement spend in China will be $38.3 billion this year; the country is set to emerge as the world's second-largest ad market by the end of this year, overtaking Japan, according to eMarketerOnline retail spending in the US rose for the seventh straight quarter, adding 14% to total $37.5 billion in the second quarter, comScore reported

Source: Industry news sources. 1

Public Market Trading Statistics

Stock Performance

Last 30 Days

g

(5%)

0%

5%

(35%)

(30%)

(25%)

(20%)

(15%)

(10%)

11 Jul 17 Jul 23 Jul 29 Jul 04 Aug 10 Aug

DJ Stoxx 600 Technology Nasdaq Composite Software and IT Services Communications Internet and Digital Media

(22.4% )(27.3% )(30.2% )(33.6% )(33.7% )

Last Twelve Months

10%

20%

30%

40%

50%

60%

25.7%14.5%11.7%2.0%

(2.9% )

Comparable Trading

Sources: Capital IQ, 12 August 2011; Brokers’ reports.

CY2011EEBITDA Margin Growth CY2011E CY2012E CY2011E CY2012E CY2011E CY2012E

P / EEV / Revenue EV / EBITDA

(10%)

0%

Aug 2010 Nov 2010 Feb 2011 May 2011 Aug 2011

DJ Stoxx 600 Technology Nasdaq Composite Software and IT Services Communications Internet and Digital Media

Summary Software and IT ServicesEnterprise Applications 19.3% 3.4% 1.5x 1.4x 7.8x 6.5x 17.9x 12.6xEuropean Large Cap Software 31.9% 6.1% 3.3x 3.0x 10.4x 8.9x 16.2x 13.9xFinancial Software 23.4% 3.2% 2.0x 1.8x 8.5x 7.4x 15.8x 13.5xHealthcare Software 20.7% 15.0% 1.8x 1.6x 8.0x 6.9x 17.7x 14.8xLarge Cap IT Services 13.0% 14.2% 0.8x 0.8x 5.9x 5.3x 12.0x 10.4xMid Cap IT Services 11.1% 3.3% 0.7x 0.6x 5.7x 5.3x 9.3x 8.2xOffshore IT Services 23.5% 24.2% 2.9x 2.4x 12.3x 10.2x 17.8x 15.0xSecurity Software 36.7% 9.9% 3.6x 3.3x 9.2x 8.0x 16.9x 14.8x

CommunicationsCommunicationsDigital Broadband 11.4% 3.7% 0.5x 0.5x 4.6x 3.8x 12.2x 7.6xDiversified Communication Equipment 13.2% 10.8% 1.0x 1.0x 8.9x 6.1x 14.9x 12.0xMobile Content / Solutions Providers 16.8% 36.4% 1.4x 1.1x 7.7x 5.0x 16.2x 14.6xMobile Infrastructure Software 14.3% 6.5% 1.9x 1.7x 12.3x 7.6x 24.2x 17.8x

Internet and Digital MediaChinese Internet Leaders 35.1% 35.2% 8.4x 6.1x 14.8x 15.2x 19.2x 17.7xOnline Classifieds 43.3% 25.4% 5.8x 5.0x 13.0x 10.9x 20.3x 19.8xContent Providers / Communities 18.9% 29.4% 4.7x 3.3x 10.9x 8.3x 28.2x 21.3xEcommerce 19.1% 33.2% 3.8x 2.9x 18.7x 13.6x 29.1x 29.5xGlobal Internet Leaders 35 2% 35 0% 5 9 9 8 16 9 14 4 14 0 16 1

2

Global Internet Leaders 35.2% 35.0% 5.9x 9.8x 16.9x 14.4x 14.0x 16.1xInteractive Entertainment 18.1% 60.0% 0.9x 0.9x 5.8x 8.7x 18.2x 12.7xIntermediation and Comparison 25.4% 12.1% 2.0x 1.8x 8.2x 7.2x 20.3x 19.3xOnline Gambling 27.5% 48.0% 1.7x 1.5x 5.5x 4.7x 10.8x 8.6xOnline Marketing 15.2% 18.9% 1.2x 1.0x 7.8x 6.5x 15.9x 14.7xOnline Travel 29.7% 21.2% 4.2x 3.4x 12.6x 9.8x 24.7x 16.7x

Software and IT Services

5%

Last 30 Days Performance

(20%)

(15%)

(10%)

(5%)

0%

Security Software (12.6% )Large Cap IT Services (13.4% )Healthcare Software (14.8% )

(35%)

(30%)

(25%)


European Large Cap Software Financial SoftwareEnterprise Applications Healthcare Software

Mid Cap IT Services (17.7% )Enterprise Applications (18.7% )European Large Cap Software (19.9% )Offshore IT Services (22.6% )Financial Software (24.9% )

p ppSecurity Software Large Cap IT ServicesMid Cap IT Services Offshore IT Services

Last Twelve Months Performance

55%

Security Software 38.0%Financial Software 13.1%Enterprise Applications 11.0%European Large Cap Software 10.6%Healthcare Software 10.3%

25%

35%

45%Large Cap IT Services 5.3%Mid Cap IT Services 4.8%Offshore IT Services 0.5%

(5%)

5%

15%

Aug 2010 Nov 2010 Feb 2011 May 2011 Aug 2011European Large Cap Software Financial SoftwareEnterprise Applications Healthcare Software

Source: Capital IQ, 12 August 2011.3

p ppSecurity Software Large Cap IT ServicesMid Cap IT Services Offshore IT Services

Software and IT Services(Continued)(Continued)

Market Enterprise CY2011ECap ($m) Value ($m) EBITDA Margin Growth CY2011E CY2012E CY2011E CY2012E CY2011E CY2012E

European Large Cap SoftwareSAP 39,075 39,006 34.5% 14.3% 3.2x 2.9x 9.1x 8.2x 14.1x 12.4xDassault Systemes 6,027 5,170 30.7% 12.1% 3.4x 3.1x 11.0x 10.0x 20.0x 17.8xAutonomy 3,840 3,868 46.9% 19.6% 6.1x 5.2x 13.0x 10.4x 21.1x 16.9x

EV / Revenue EV / EBITDA P / E

y , ,Sage 3,321 3,394 26.8% 3.8% 2.3x 2.2x 8.4x 7.9x 12.9x 11.9xSoftware AG 2,278 2,419 28.9% 4.2% 2.4x 2.3x 8.2x 7.5x 12.7x 11.3xAveva 1,043 890 32.2% 16.9% 4.7x 4.2x 14.6x 12.4x 24.4x 20.7xTemenos 903 1,029 25.1% 14.4% 3.2x 2.9x 12.8x 9.5x 14.1x 13.0xMisys 882 976 24.9% (29.0%) 2.4x 2.1x 9.6x 7.9x 17.4x 12.3xMicro Focus 614 623 36.9% (1.2%) 2.4x 2.4x 6.5x 6.4x 9.4x 9.1x

Mean 31.9% 6.1% 3.3x 3.0x 10.4x 8.9x 16.2x 13.9xMedian 30.7% 12.1% 3.2x 2.9x 9.6x 8.2x 14.1x 12.4x

Financial SoftwareIntuit 7,861 7,355 37.1% 12.7% 3.0x 2.8x 8.1x 7.4x 15.8x 14.3xTemenos 903 1,029 25.1% 14.4% 3.2x 2.9x 12.8x 9.5x 14.1x 13.0x,Misys 882 976 24.9% (29.0%) 2.4x 2.1x 9.6x 7.9x 17.4x 12.3xFidessa 572 518 20.5% 6.9% 1.8x 1.7x 8.9x 8.2x 20.3x 18.4xSimCorp 466 421 24.0% 7.2% 2.4x 2.1x 9.9x 8.3x 16.2x 12.9xInnovation 193 166 12.5% 8.1% 0.9x 0.9x 7.4x 6.8x 18.9x 16.6xORC 128 106 23.6% (1.5%) 1.2x 1.1x 4.9x 4.0x 13.9x 9.7xMicrogen 128 103 26.0% 14.5% 2.7x 2.5x 10.5x 9.9x 18.3x 17.1xLinedata 99 97 20.8% (1.9%) 0.8x 0.7x 3.8x 3.5x 8.9x 7.9xStatPro 52 57 19.4% 0.7% 1.7x 1.6x 8.9x 8.0x 14.3x 12.6x


Enterprise Applicationsp ppSDL 518 465 19.1% 10.8% 2.1x 1.9x 10.9x 9.8x 17.8x 16.1xUnit 4 506 629 21.0% 10.6% 1.5x 1.4x 7.3x 6.5x 18.2x 13.5xExact 406 367 24.0% (3.1%) 1.9x 1.8x 7.8x 7.3x 13.5x 12.5xF-Secure 301 280 19.2% 10.7% 2.2x 2.0x 11.5x 9.1x 18.9x 14.5xKofax 285 241 20.1% (15.7%) 1.5x 1.4x 7.6x 7.0x 14.4x 12.4xIFS 265 226 16.1% 0.5% 0.9x 0.8x 5.6x 4.9x 13.8x 11.3xCegid 123 187 24.5% 3.9% 0.8x 0.8x 3.3x 3.2x 7.0x 6.5xKewill 84 67 18.2% 5.9% 1.1x 1.0x 5.9x 5.5x 11.6x 10.5xAlterian 53 46 11.1% 7.1% 1.2x 1.1x 10.5x 5.4x 46.1x 16.5x


Healthcare SoftwareMcKesson 11,873 12,406 2.4% 7.7% 0.2x 0.2x 7.3x 6.1x 14.1x 11.9xCerner 6,000 5,654 31.8% 14.2% 4.4x 3.9x 13.8x 11.6x 31.8x 26.4xAllscripts Healthcare Solutions 1,751 1,939 27.1% 14.8% 2.2x 2.0x 8.2x 7.1x 17.1x 14.3xCegedim 368 784 18.0% 2.3% 0.9x 0.9x 5.2x 4.8x 7.5x 6.1xCompuGroup 357 503 19.9% 26.2% 1.4x 1.2x 7.1x 5.5x 14.1x 9.1xAdvanced Computer Software 137 168 25.3% 24.8% 1.7x 1.6x 6.8x 6.4x 21.4x 21.1x


4Sources: Capital IQ, 12 August 2011; Brokers’ reports.

Software and IT Services(Continued)(Continued)


Security SoftwareSymantec 7,679 7,546 34.1% 11.5% 1.8x 1.8x 5.4x 4.8x 10.6x 9.5xCheck Point 6,974 6,272 60.0% 14.5% 8.3x 7.5x 13.8x 12.5x 19.6x 17.6xTrend Micro 2 508 1 622 33 4% 3 1% 2 1x 2 0x 6 2x 5 6x 18 5x 17 6x

P / EEV / Revenue EV / EBITDA

Trend Micro 2,508 1,622 33.4% 3.1% 2.1x 2.0x 6.2x 5.6x 18.5x 17.6xF-Secure 301 280 19.2% 10.7% 2.2x 2.0x 11.5x 9.1x 18.9x 14.5x


Large Cap IT ServicesAccenture 21,469 18,544 15.7% 18.9% 1.2x 1.1x 7.4x 6.8x 15.7x 14.0xCapita Group 4,305 5,533 17.1% 7.5% 1.9x 1.7x 10.9x 10.0x 14.6x 13.3xCap Gemini 4,123 3,953 9.2% 12.1% 0.5x 0.4x 5.0x 4.4x 12.2x 10.2xComputer Sciences 2,766 3,522 12.7% 0.0% 0.4x 0.3x 2.8x 2.4x 7.0x 6.1xAtos Origin 2,086 2,167 10.3% 32.4% 0.4x 0.3x 3.6x 2.8x 10.7x 8.3x


Mid Cap IT ServicesCGI 3,223 3,797 18.9% 9.8% 1.4x 1.3x 7.5x 7.1x 12.6x 11.4xIndra Sistemas 1,778 2,098 12.1% 2.4% 0.9x 0.9x 7.5x 7.0x 10.3x 9.8xLogica 1,448 1,878 8.6% 6.1% 0.5x 0.5x 5.5x 5.0x 7.2x 6.4xTieto 638 765 10.4% 6.9% 0.5x 0.5x 4.6x 4.2x 11.5x 8.4xSopra 494 546 10.7% (5.3%) 0.6x 0.5x 5.3x 5.0x 8.6x 8.1xGroupe Steria 425 603 9.1% (1.3%) 0.4x 0.4x 4.5x 4.2x 7.4x 6.5xGFI Informatique 154 244 7.7% 4.7% 0.4x 0.4x 5.2x 4.8x 7.7x 6.9x


Offshore IT ServicesTata 25,121 24,370 29.2% 27.8% 4.1x 3.3x 13.9x 11.6x 18.2x 15.8xInfosys 18,306 16,006 30.8% 20.6% 3.8x 3.3x 12.5x 10.9x 18.2x 14.7xCognizant 11,967 10,582 20.7% 32.9% 2.9x 2.3x 13.8x 11.3x 23.0x 19.2xWipro 11,300 10,528 20.3% 15.9% 2.3x 2.0x 11.1x 9.5x 15.2x 12.7xHCL 3,794 3,835 16.6% 23.6% 1.7x 1.3x 9.9x 7.8x 14.5x 12.4x



Communications


5%

Mobile Content / Solutions Providers (24.2% )Digital Broadband (24.5% )Mobile Infrastructure Software (25.8% )Diversified Communication Equipment (40.2% )

(30%)

(25%)

(20%)

(15%)

(10%)

(5%)

0%

(50%)

(45%)

(40%)

(35%)

(30%)


Digital Broadband Diversified Communication Equipment

70%


Mobile Content / Solutions Providers 12.2%Mobile Infrastructure Software (0.2% )


Mobile Infrastructure Software Mobile Content / Solutions Providers

10%

20%

30%

40%

50%

60% Diversified Communication Equipment (1.8% )Digital Broadband (27.1% )

(30%)

(20%)

(10%)

0%

Aug 2010 Nov 2010 Feb 2011 May 2011 Aug 2011


Mobile Infrastructure Software Mobile Content / Solutions Providers

6Source: Capital IQ, 12 August 2011.

Communications(C ti d)(Continued)


Digital BroadbandLogitech 934 621 6.7% 4.6% 0.4x 0.4x 6.3x 4.0x 20.6x 7.8xTomTom 663 981 16.4% (16.0%) 0.9x 0.9x 5.4x 5.4x 9.3x 8.5xTechnicolor 458 1 307 13 7% 5 4% 0 4x 0 4x 3 0x 2 8x NA NA

P / EEV / EBITDAEV / Revenue

Technicolor 458 1,307 13.7% 5.4% 0.4x 0.4x 3.0x 2.8x NA NAKudelski 391 571 12.2% (12.2%) 0.8x 0.7x 6.1x 5.2x 14.5x 9.0xPace 295 588 8.6% 22.2% 0.4x 0.4x 4.3x 3.7x 4.7x 3.4xParrot 237 151 15.3% 7.6% 0.7x 0.6x 4.3x 3.7x 12.0x 10.7xAdvanced Digital Broadcast 53 50 7.3% 14.1% 0.2x 0.2x 2.7x 1.9x NM 5.9x


Diversified Communication EquipmentLM Ericsson Telephone 22,124 17,696 15.4% 13.3% 0.8x 0.8x 5.3x 4.8x 14.2x 11.6xNokia 13,382 11,074 5.2% (8.7%) 0.3x 0.3x 6.2x 4.8x 20.1x 14.7xAlcatel-Lucent 5,246 6,154 9.0% 4.8% 0.4x 0.4x 4.7x 4.0x 11.8x 8.8xADTRAN 1 170 1 099 30 3% 21 6% 2 5x 2 2x 8 2x 7 4x 13 5x 12 3xADTRAN 1,170 1,099 30.3% 21.6% 2.5x 2.2x 8.2x 7.4x 13.5x 12.3xCIENA 748 1,319 5.9% 23.0% 1.2x 1.0x 20.1x 9.6x NM 12.5x


Mobile Infrastructure SoftwareQUALCOMM 51,664 45,917 44.4% 36.9% 4.8x 4.1x 10.8x 9.8x 15.6x 13.9xVeriSign 3,150 2,656 53.2% 4.0% 5.7x 5.0x 10.6x 9.3x 21.3x 17.1xAmdocs 3,025 2,333 20.5% 6.2% 1.2x 1.1x 5.8x 5.8x 12.0x 10.8xComverse Technology 807 865 16.6% 7.7% 0.9x 0.8x 5.3x 4.9x 8.5x 7.6xSynchronoss Technologies 665 569 25.8% 36.1% 4.1x 3.4x 15.9x 12.2x 33.6x 27.0xSonus Networks 413 219 3.7% 13.1% 1.3x 1.3x 36.8x 13.5x NM 28.9xTekelec 302 141 14 0% (6 8%) 0 6x 0 6x 4 2x 4 0x 25 2x 16 8xTekelec 302 141 14.0% (6.8%) 0.6x 0.6x 4.2x 4.0x 25.2x 16.8xTeleCommunication Systems 144 197 14.0% 9.4% 0.7x 0.7x 5.3x 4.4x 29.5x 18.8xOpenwave Systems 66 16 (10.3%) (13.8%) 0.2x 0.2x NM 3.0x NM 21.5xRedknee Solutions 52 49 7.6% 24.0% 1.2x 1.1x 16.3x 8.6x 48.1x 15.3xSmith Micro Software 41 3 (32.8%) (45.3%) 0.1x 0.1x NM NM NM NM


Mobile Content / Solutions ProvidersOpera Software 388 333 25.0% 30.0% 3.3x 2.6x 13.3x 8.8x 24.6x 15.3xGameLoft 287 265 21.6% 14.6% 1.9x 1.7x 8.6x 7.2x 21.0x 17.6xBuongiorno 100 138 11.5% 27.2% 0.5x 0.4x 4.2x 3.4x 13.8x 8.6xDanal 64 50 17 7% 23 0% 0 7x 0 6x 4 0x 3 1x 15 0x 11 0xDanal 64 50 17.7% 23.0% 0.7x 0.6x 4.0x 3.1x 15.0x 11.0xDada 31 53 11.3% (34.8%) 0.6x 0.6x 5.1x 4.3x NM 33.1xSynchronica 26 26 13.9% 158.4% 1.5x 1.0x 10.9x 3.5x 6.5x 2.1x



Internet and Digital Media


g

15%

(20%)(15%)(10%)(5%)

0%5%

10%15%

Chinese Internet Leaders (1 4% )

(50%)(45%)(40%)(35%)(30%)(25%)

12 Jul 18 Jul 24 Jul 30 Jul 05 Aug 11 AugGlobal Internet Leaders EcommerceOnline Travel Online Marketing

Chinese Internet Leaders (1.4% )Global Internet Leaders (1.9% )Intermediation and Comparison (4.0% )Online Gambling (10.6% )Online Marketing (16.5% )Content Providers / Communities (16.6% )Online Classifieds (17.4% )Interactive Entertainment (27.8% )Ecommerce (33.9% )Online Travel (35.1% )

110%


Online Travel Online MarketingContent Providers / Communities Intermediation and ComparisonOnline Classifieds Chinese Internet LeadersOnline Gambling Interactive Entertainment

Chinese Internet Leaders 41.0%Online Classifieds 38.8%Online Travel 35.7%Intermediation and Comparison 35.5%E 34 8%

10%

30%

50%

70%

90%Ecommerce 34.8%Global Internet Leaders 29.3%Online Marketing 29.0%Content Providers / Communities 7.6%Interactive Entertainment (8.3% )Online Gambling (32.8% )

(50%)

(30%)

(10%)

Aug 2010 Nov 2010 Feb 2011 May 2011 Aug 2011Global Internet Leaders EcommerceOnline Travel Online MarketingC t t P id / C iti I t di ti d C iContent Providers / Communities Intermediation and ComparisonOnline Classifieds Chinese Internet LeadersOnline Gambling Interactive Entertainment

8Source: Capital IQ, 12 August 2011.

Internet and Digital Media(Continued)(Continued)


Global Internet LeadersApple 213,215 195,893 32.8% 58.3% 2.7x 2.3x 8.4x 7.3x 12.7x 11.2xMicrosoft 128,290 104,966 42.4% 9.6% 2.4x 2.2x 5.6x 5.0x 8.9x 8.2xGoogle 111,050 90,930 43.0% 26.2% 4.1x 3.3x 9.5x 7.9x 15.9x 13.5x

EV / EBITDA P / EEV / Revenue

Google 111,050 90,930 43.0% 26.2% 4.1x 3.3x 9.5x 7.9x 15.9x 13.5xAmazon 56,022 52,145 5.2% 43.1% 1.7x 1.3x 33.5x 24.1x NM NMBaidu 31,962 31,019 57.9% 83.9% 23.7x 15.4x 40.9x 26.8x NM 34.8xeBay 24,003 22,874 32.7% 26.3% 3.2x 2.8x 9.9x 8.4x 15.3x 13.2xYahoo! 10,464 8,955 32.2% (2.5%) 3.3x 3.1x 10.2x 8.7x 17.3x 15.5x


EcommerceAmazon 56,022 52,145 5.2% 43.1% 1.7x 1.3x 33.5x 24.1x NM NMeBay 24,003 22,874 32.7% 26.3% 3.2x 2.8x 9.9x 8.4x 15.3x 13.2xNetflix 7,820 7,734 15.9% 51.9% 3.9x 2.8x 24.2x 17.9x NM 35.6xMail.ru 3,952 3,867 46.4% 57.3% 13.3x 10.2x 28.7x 20.6x 38.1x 26.7xMail.ru 3,952 3,867 46.4% 57.3% 13.3x 10.2x 28.7x 20.6x 38.1x 26.7xIAC 1,961 1,497 18.1% 19.0% 1.3x 1.1x 7.0x 5.8x 18.8x 15.7xMercadolibre 1,845 1,774 35.3% 37.3% 9.9x 7.6x 28.0x 20.7x 44.0x 31.5xAsos 1,416 1,411 9.8% 52.3% 3.0x 2.1x 30.7x 21.7x NM 37.4xShutterfly 1,040 993 19.5% 63.3% 3.4x 2.6x 17.3x 11.8x NM 34.5xOpenTable 937 895 39.5% 45.7% 10.2x 7.9x 25.9x 18.3x NM 37.8xVistaprint 741 597 16.3% 24.7% 1.1x 0.9x 6.6x 6.2x 14.5x 12.6xOcado 647 647 5.9% 21.3% 1.0x 0.9x 17.6x 11.5x NM 43.2xDigital River 540 324 21.1% 8.5% 1.4x 1.2x 6.4x 5.1x 20.3x 15.8xYOOX 452 448 9.8% 33.9% 1.8x 1.4x 18.3x 13.1x 46.0x 34.0xBlue Nile 301 256 9.0% 8.6% 1.2x 1.1x 13.1x 11.9x 35.5x 31.1xOverstock 148 125 1.3% 5.2% 0.2x 0.2x 13.7x 7.4x NM 43.5x


Online TravelPriceline 15,276 14,478 33.6% 39.8% 5.5x 4.4x 16.4x 12.3x 22.3x 16.8xExpedia 4,813 4,501 26.3% 17.8% 1.9x 1.7x 7.1x 6.5x 14.8x 13.1xCtrip 3,608 3,250 40.0% 28.9% 9.6x 7.7x 24.1x 18.9x 28.4x 22.8xWotif 642 565 55.7% 8.1% 5.9x 5.3x 10.6x 9.3x 17.8x 15.6xTravelzoo 459 434 26.9% 37.4% 4.6x 3.7x 17.1x 11.8x 31.5x 22.4xOrbitz 154 353 15.9% 1.3% 0.8x 0.7x 4.8x 4.4x 40.3x 17.5xhotel.de 38 30 9.6% 14.8% 0.8x 0.7x 8.4x 5.3x 17.7x 8.5x


Online MarketingValueClick 695 608 29.8% 25.7% 1.9x 1.5x 6.2x 5.3x 15.7x 13.1xConstant Contact 328 255 16.3% 23.3% 1.9x 1.6x 12.0x 8.7x 28.4x 20.0xMarchex 235 218 15.7% 53.7% 2.4x 2.0x 15.3x 12.7x NM NMInfoSpace 213 52 14.1% (5.3%) 0.4x 0.4x 2.7x 2.8x 17.6x 21.2xLBI 172 174 17.6% 19.6% 1.0x 0.9x 5.6x 5.5x 7.7x 8.1xHi-Media 125 156 9.5% 10.7% 0.7x 0.7x 7.5x 6.4x 12.8x 9.9xTradeDoubler 120 100 5.0% 3.4% 0.4x 0.3x 7.1x 6.1x 12.5x 10.2x1000mercis 102 83 39.7% 26.7% 2.3x 2.0x 5.8x 5.0x 10.6x 9.2xSedo 78 60 6.5% 12.9% 0.5x 0.5x 8.2x 7.1x 21.7x 15.8xad pepper media 27 16 (2 3%) 18 2% 0 3x 0 3x NM 5 2x NM 24 4xad pepper media 27 16 (2.3%) 18.2% 0.3x 0.3x NM 5.2x NM 24.4x


Content Providers / CommunitiesLinkedIn 5,357 5,130 13.7% 21.6% 17.4x 11.5x NM NM NM NMWebMD Health 1,271 1,059 34.2% 10.4% 3.0x 2.7x 8.6x 7.5x 25.9x 24.5xPandora Media 1,244 1,222 2.0% 149.5% 8.9x 4.7x NM NM NM NMPerform Group 391 376 17.2% 53.7% 3.6x 2.9x 21.1x 11.8x 33.0x 17.3xMixi 385 305 26.0% (2.5%) 2.4x 1.9x 9.4x 8.2x 41.1x 22.6xMeetic 301 271 21.0% 0.6% 1.6x 1.6x 7.8x 7.3x 13.5x 12.3xXING 234 177 31.4% 23.7% 3.0x 2.6x 9.7x 7.9x 32.4x 20.4xXO Group 162 104 12 0% 9 7% 1 4x 1 3x 11 5x 8 3x NM 36 2x


XO Group 162 104 12.0% 9.7% 1.4x 1.3x 11.5x 8.3x NM 36.2xMove 151 126 12.9% (2.5%) 1.1x 1.0x 8.3x 7.1x 23.5x 15.6x


Internet and Digital Media(Continued)(Continued)


Intermediation and ComparisonMoneysupermarket 534 502 27.2% 20.3% 2.8x 2.7x 10.4x 9.3x 17.5x 15.3xLiquidity Services 389 325 15.2% 17.8% 1.6x 1.4x 10.2x 8.6x 19.7x 21.4xeHealth 170 87 16.1% (3.7%) 1.0x 0.9x 6.0x 5.8x 33.3x 31.9x

P / EEV / EBITDAEV / Revenue

eHealth 170 87 16.1% (3.7%) 1.0x 0.9x 6.0x 5.8x 33.3x 31.9xGruppo MutuiOnline 145 129 43.0% 13.9% 2.6x 2.3x 6.0x 5.0x 10.6x 8.8x


Online ClassifiedsSEEK 1,306 1,453 43.7% 20.0% 6.1x 5.3x 13.9x 11.8x 17.7x 14.3xRightmove 1,195 1,177 68.9% 15.1% 12.2x 10.7x 17.7x 15.2x 24.9x 20.9x51job 970 798 40.9% 25.8% 6.3x 5.1x 15.4x 13.5x 26.3x 20.8xSouFun 917 783 45.9% 59.8% 3.9x 3.2x 8.5x 7.0x 14.2x 11.1xCarsales.au 673 660 55.2% 16.7% 6.5x 5.8x 11.7x 10.4x 17.6x 15.5xMonster 649 602 18.1% 14.5% 0.9x 0.8x 5.0x 3.7x 20.0x 11.4xLoopNet 443 377 31.8% 10.6% 7.2x 6.3x 22.6x 18.2x NM 48.7xLoopNet 443 377 31.8% 10.6% 7.2x 6.3x 22.6x 18.2x NM 48.7xDice 430 400 41.8% 40.8% 3.6x 3.0x 8.7x 7.0x 21.3x 15.6x


Chinese Internet LeadersBaidu 31,962 31,019 57.9% 83.9% 23.7x 15.4x 40.9x 26.8x NM 34.8xTencent 27,015 25,811 49.4% 42.8% 9.7x 7.4x 19.7x 15.0x 26.7x 20.4xSina 4,148 3,658 16.5% 21.8% 12.4x 9.8x NM 47.5x NM NMNetease 3,859 2,892 50.1% 30.0% 4.5x 3.9x 9.1x 7.7x 14.2x 12.5xAlibaba 3,684 2,817 33.9% 20.1% 4.4x 3.8x 13.1x 11.1x 20.3x 17.0xFocus Media 2,422 2,082 39.4% 23.3% 5.1x 4.2x 12.8x 10.5x 20.4x 16.4xRenren 1,923 1,173 2.6% (2.5%) 15.7x 9.8x NM NM NM NMRenren 1,923 1,173 2.6% (2.5%) 15.7x 9.8x NM NM NM NMSohu 1,880 1,551 37.8% 38.4% 3.0x 2.4x 8.0x 6.1x 16.4x 13.3xShanda Interactive 1,176 758 17.6% 34.4% 1.1x 1.0x 6.4x 4.9x 22.2x 16.3xSouFun 917 783 45.9% 59.8% 3.9x 3.2x 8.5x 7.0x 14.2x 11.1x


Online Gamblingbwin.party digital entertainment 896 764 22.0% 130.1% 1.1x 1.0x 5.0x 4.1x 8.6x 7.1xPlaytech 774 715 56.0% 32.7% 4.2x 3.3x 7.5x 6.6x 8.7x 7.6xBetfair 641 489 20.0% 17.1% 1.2x 1.2x 6.1x 4.9x 17.8x 12.5x888 109 70 12.1% 12.1% 0.4x 0.4x 3.3x 3.0x 8.0x 7.2x

M 27 5% 48 0% 1 7 1 5 5 5 4 7 10 8 8 6Mean 27.5% 48.0% 1.7x 1.5x 5.5x 4.7x 10.8x 8.6xMedian 21.0% 24.9% 1.2x 1.1x 5.5x 4.5x 8.7x 7.4x

Interactive EntertainmentActivision 7,467 5,671 35.2% (10.8%) 2.3x 2.0x 6.5x 5.6x 13.5x 11.4xElectronic Arts 4,064 2,937 12.9% 10.2% 1.2x 1.1x 9.1x 7.2x 26.3x 18.1xTake-Two Interactive Software 607 522 9.6% (4.6%) 0.8x 0.8x 8.0x 17.6x 14.3x NMUbisoft Entertainment 438 325 27.0% 23.4% 0.3x 0.3x 1.3x 0.8x 18.6x 11.1xTHQ 77 66 3.0% 23.2% 0.1x 0.1x 3.9x 12.6x NM 10.3x



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