european technology updateeuropean technology update...sep 13, 2010 · optical transceiver chip...

European Technology UpdateEuropean Technology UpdateSeptember 13, 2010

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

Francois MorinVice President63 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

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

Recent Developments

HP agreed to acquire data storage solutions provider 3Par for $33 per share, or $2.3 billion, in a highly competitive bidding war with DellSecurity software provider McAfee has agreed to be acquired by Intel for $7.7 billionHgCapital has agreed to acquire software provider TeamSystem for €565 millionElectronic payment solutions provider DataCash has agreed to be acquired by MasterCard for $493 millionI li l t ki d t id Att ti h d t b i d b 3M f $230 illi

Company Specific

News

p

Israeli people-tracking products provider Attenti has agreed to be acquired by 3M for $230 millionIBM has agreed to acquire marketing software solutions company Unica for $447 millionVolvo Technology Transfer and Industrifonden have divested Illuminate Labs, a provider of lighting and illumination technology for video games, to AutodeskThe online gambling industry has been the subject of M&A speculation particularly surrounding 888, Sportingbet and PartyGaming1

Chinese online gaming company Shanda Games acquired South Korean competitor Eyedentity for $95 millionPalamon Capital has sold broadcast equipment manufacturer OmniBus Systems to Miranda Technologies for C$ 48.7 millionFrancisco Partners has acquired a majority stake in email marketing software provider Emailvision in a €46Francisco Partners has acquired a majority stake in email marketing software provider Emailvision in a €46 million transactionLinkedIn has acquired recommendation technology provider MSpoke in its first acquisitionZynga acquired Japanese online gaming platform Unoh for “several billion yen”Google acquired social payments provider Jambool for approximately $75 millionOptical transceiver chip maker Phyworks has been acquired by Maxim Integrated Products for $72.5 millionVisual search engine Like.com has been acquired by GoogleNokia has agreed to acquire mobile analytics company MotallyIndex Ventures and Greylock Partners led a £7.5 million round in ecommerce company Notonthehighstreet.comoto t e ig st eet.coPrivate online shopping clubs continue to attract significant interest with Tagadas launching its U.K. children’s products site; Brands4friends making an additional “multi-million” pound investment in the U.K. operator Secretsales.com; and Accel investing €37 million in Showroomprivee.comHgCapital business software portfolio company Visma is targeting a 2011 IPOOnline video platform Hulu has begun preparations for an IPO that could value the company at more than $2 billionOnline ticket retailer Volagratis hired advisors to prepare for a Zurich Stock Exchange listingAdvertising on Facebook generated $665 million in 2009 and is expected to double in 2010 to reach $1.3 billion, according to eMarketer

Global IT spending is expected by IDC to grow 6% to $1.5 trillion for 2010 with China growing by 21%, Western Europe by 3% and the U.S. by 5%

Cisco Systems launched its own tablet PC designed for enterprise use called the Cius and RIM intends to launch the BlackPad in NovemberGoogle unveiled new search technology feature Instant, which displays likely search results as the user typesMySpace rolled out its new music video service as a first step in transforming the site into a social media portal

Industry Trends

ComScore reported that smartphone sales in Europe’s five biggest markets grew by 32% in 2009 and by 70% in the U.KAccording to Canalys, the Android platform now accounts for a greater share of new smartphones than RIM in the U.S. (34% Android, 32% RIM, 22% Apple)Amazon has announced that it controls 70-80% of the ebook marketeMarketer forecasted the population of mobile video viewers in the U.S. to grow by nearly 30% through 2014 to reach 57 million viewers and $1.3 billion in revenueresearch2guidance reported that global revenue from mobile apps reached $2.2 billion in the first half of 2010, up from $1.7 billion in 2009, with an average price of $3.60 per appA di t th P f i Ri ht S i t di it l i l t f l 25% f t t l i

e ds

According to the Performing Rights Society, digital music sales now account for nearly 25% of total music revenue in the U.K.The global market for boxes enabling web access on TVs is estimated by In-Stat to grow by 42% to reach $1.3 billion by 2014

Source: Industry news sources.(1) Source: MergerMarket.

1

Public Market Trading Statistics

Stock Performance

5%

10%

Last 30 Days

g

5.6%3.3%

(10%)

(5%)

0%

11 Aug 17 Aug 23 Aug 29 Aug 04 Sep

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

2.4%1.3%1.3%

(5%)

0%

5%

10%

15%

20%

25%

Last Twelve Months

14.7%10.2%7.3%

(7.1% )(10 7% )

CY2010EEBITDA Margin Growth CY2010E CY2011E CY2010E CY2011E CY2010E CY2011E

P / EEV / Revenue EV / EBITDA

(20%)

(15%)

(10%)

Sep 2009 Dec 2009 Mar 2010 Jun 2010 Sep 2010

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

Comparable Trading

Sources: Capital IQ, 9 September 2010; Brokers’ reports.

(10.7% )

Software and IT ServicesEnterprise Applications 19.6% 0.2% 1.5x 1.5x 7.8x 6.9x 14.7x 12.6xEuropean Large Cap Software 32.2% 10.2% 3.6x 3.4x 11.1x 9.7x 18.1x 15.8xFinancial Software 23.6% 7.8% 2.1x 2.0x 8.6x 7.3x 16.7x 13.8xHealthcare Software 20.3% 33.2% 1.9x 1.7x 9.3x 7.7x 18.2x 18.7xLarge Cap IT Services 13.1% (3.1%) 0.9x 0.9x 6.5x 5.9x 13.8x 11.7xMid Cap IT Services 11.1% (6.7%) 0.7x 0.7x 6.2x 5.7x 10.9x 9.4xOffshore IT Services 25.1% 19.8% 4.0x 3.6x 15.5x 13.1x 22.7x 19.1xSecurity Software 34.1% 5.3% 3.1x 3.0x 9.2x 8.2x 17.3x 15.4x

Communications

Summary

CommunicationsDigital Broadband 13.2% 3.7% 0.7x 0.7x 5.5x 4.9x 11.4x 10.4xDiversified Communication Equipment 12.4% 19.1% 1.2x 1.2x 7.9x 9.4x 19.0x 15.5xMobile Content / Solutions Providers 16.0% 24.8% 1.9x 1.7x 12.0x 7.4x 27.8x 18.2xMobile Infrastructure Software 23.8% 7.0% 2.2x 2.1x 10.6x 8.0x 17.2x 16.7x

Internet and Digital MediaChinese Internet Leaders 41.2% 33.0% 8.1x 7.0x 18.5x 13.5x 24.1x 21.4xOnline Classifieds 38.6% 14.1% 5.2x 5.2x 12.9x 10.3x 25.7x 22.1xContent Providers / Communities 21.4% 7.7% 2.2x 2.1x 10.6x 8.4x 25.4x 24.0xEcommerce 15.8% 21.5% 3.4x 3.0x 19.8x 14.4x 32.4x 30.1xGlobal Internet Leaders 33 4% 24 5% 6 1x 5 3x 16 8x 12 9x 22 7x 22 6xGlobal Internet Leaders 33.4% 24.5% 6.1x 5.3x 16.8x 12.9x 22.7x 22.6xInteractive Entertainment 16.3% 26.4% 0.8x 1.0x 5.2x 4.6x 21.1x 16.4xIntermediation and Comparison 27.5% 7.6% 1.9x 1.7x 7.1x 6.3x 17.4x 15.4xOnline Gambling 31.8% (8.9%) 3.4x 3.3x 9.3x 8.2x 13.7x 12.0xOnline Marketing 13.3% 7.0% 1.2x 1.2x 9.9x 7.1x 22.1x 17.3xOnline Travel 27.7% 17.5% 4.5x 4.1x 16.4x 13.1x 31.0x 22.4x

2

Software and IT Services

15%

Security Software 13.0%European Large Cap Software 6.7%Offshore IT Services 3.4%Enterprise Applications 2.7%Financial Software 2.5%H lth S ft 2 2%

Last 30 Days Performance

0%

5%

10%

Healthcare Software 2.2%Mid Cap IT Services 0.5%Large Cap IT Services (0.7% )

(10%)

(5%)

11 Aug 17 Aug 23 Aug 29 Aug 04 Sep

European Large Cap Software Financial SoftwareEnterprise Applications Healthcare Softwarep ppSecurity Software Large Cap IT ServicesMid Cap IT Services Offshore IT Services

Last Twelve Months PerformanceOffshore IT Services 46.4%European Large Cap Software 18.1%Enterprise Applications 15.6%Financial Software 13.4%Healthcare Software 1.3%Security Software (4.3% )Mid Cap IT Services (5.3% )

50%p ( )

Large Cap IT Services (8.2% )

10%

20%

30%

40%

(20%)

(10%)

0%


European Large Cap Software Financial SoftwareEnterprise Applications Healthcare Software

Source: Capital IQ, 9 September 2010.3

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

Software and IT Services(Continued)

Market Enterprise CY2010ECap ($m) Value ($m) EBITDA Margin Growth CY2010E CY2011E CY2010E CY2011E CY2010E CY2011E

European Large Cap SoftwareSAP 54,613 48,272 33.5% (1.3%) 3.2x 3.0x 9.6x 8.3x 16.7x 14.4xDassault Systemes 7,580 6,650 27.8% 8.1% 3.4x 3.1x 12.3x 10.2x 20.9x 17.9xAutonomy 6 521 6 354 52 3% 20 7% 7 1x 6 5x 13 6x 11 4x 21 5x 18 4x

EV / Revenue EV / EBITDA P / E

Autonomy 6,521 6,354 52.3% 20.7% 7.1x 6.5x 13.6x 11.4x 21.5x 18.4xSage 5,164 5,605 25.8% (3.8%) 2.5x 2.5x 9.8x 9.3x 14.3x 13.5xSoftware 3,106 3,479 27.2% 15.1% 2.5x 2.4x 9.2x 8.5x 14.6x 13.0xMisys 2,348 2,578 21.1% (2.9%) 2.1x 2.1x 9.9x 8.9x 20.5x 17.7xTemenos 1,640 1,743 28.7% 21.1% 3.9x 3.7x 13.5x 11.1x 18.3x 15.7xAveva 1,468 1,237 34.5% 0.1% 5.1x 5.0x 14.7x 13.3x 25.8x 22.9xMicro Focus 1,154 1,222 38.7% 34.8% 2.7x 2.6x 6.9x 6.6x 9.8x 9.0x

Mean 32.2% 10.2% 3.6x 3.4x 11.1x 9.7x 18.1x 15.8xMedian 28.7% 8.1% 3.2x 3.0x 9.9x 9.3x 18.3x 15.7x

Financial SoftwareIntuit 13,815 13,301 36.4% 9.9% 3.7x 3.5x 10.2x 9.2x 20.6x 18.0xMisys 2,348 2,578 21.1% (2.9%) 2.1x 2.1x 9.9x 8.9x 20.5x 17.7xMisys 2,348 2,578 21.1% (2.9%) 2.1x 2.1x 9.9x 8.9x 20.5x 17.7xTemenos 1,640 1,743 28.7% 21.1% 3.9x 3.7x 13.5x 11.1x 18.3x 15.7xFidessa 778 716 22.0% 6.6% 1.7x 1.7x 7.9x 7.1x 20.3x 18.6xSimCorp 644 599 24.4% (2.4%) 2.4x 2.3x 9.7x 8.4x 16.3x 13.3xORC 422 392 24.7% 50.1% 2.7x 2.2x 10.8x 7.2x 20.0x 13.9xLinedata 145 162 16.8% (10.9%) 0.9x 0.9x 5.2x 4.7x 9.7x 8.1xInnovation 143 113 10.3% (0.8%) 0.5x 0.4x 4.4x 3.4x 14.1x 9.2xMicrogen 108 72 25.7% 7.6% 1.4x 1.4x 5.6x 5.2x 14.1x 11.8xStatPro 103 114 26.1% (0.1%) 2.2x 2.2x 8.6x 7.9x 12.7x 11.3x


Enterprise Applicationste p se pp cat o sUnit 4 689 863 20.4% (0.6%) 1.6x 1.5x 7.8x 6.8x 20.5x 14.4xSDL 659 573 19.5% 6.1% 1.9x 1.9x 10.0x 8.6x 17.3x 15.7xExact 522 462 22.5% (11.7%) 1.6x 1.5x 7.0x 6.6x 13.9x 12.8xF-Secure 449 411 20.5% (7.5%) 2.5x 2.4x 12.1x 10.0x 20.7x 16.5xKofax 351 302 10.4% 15.2% 0.8x 0.8x 8.0x 6.8x 16.4x 13.2xIFS 296 249 16.5% 0.3% 0.7x 0.7x 4.2x 3.8x 10.3x 9.0xCegid 219 312 25.0% (9.9%) 1.0x 1.0x 3.9x 3.8x 8.7x 7.8xAlterian 179 162 24.1% 8.2% 2.5x 2.4x 10.3x 9.2x 15.4x 14.7xKewill 134 108 17.5% 2.0% 1.2x 1.2x 6.8x 6.3x 9.6x 9.2x


Healthcare SoftwareMcKesson 15,596 14,308 2.3% 2.5% 0.1x 0.1x 5.7x 5.3x 12.4x 11.3xCerner 6,473 5,941 30.2% 13.2% 3.2x 3.0x 10.6x 9.0x 27.2x 22.6xAllscripts-Misys 3,203 3,086 14.4% 95.8% 2.4x NA 16.5x 10.1x 25.4x 20.1xCegedim 977 1,491 20.8% (6.7%) 1.3x 1.3x 6.1x 5.7x 10.6x 9.2xCompuGroup 534 677 21.3% (4.4%) 1.6x 1.6x 7.7x 6.6x 15.6x 12.3xAdvanced Computer Software 189 248 32.5% 98.7% 2.9x 2.5x 8.9x 9.4x NM 36.6x


4Sources: Capital IQ, 9 September 2010; Brokers’ reports.

Software and IT Services(Continued)


Security SoftwareSymantec 11,540 10,667 32.5% 1.1% 1.8x 1.7x 5.5x 4.8x 10.8x 10.0xMcAfee 7,264 6,482 30.8% 7.0% 3.1x 3.0x 10.2x 9.7x 18.4x 16.6xCheck Point 7,074 6,084 58.4% 14.8% 5.7x 5.5x 9.8x 9.2x 14.5x 13.3x


, ,Trend Micro 4,106 2,648 28.1% 10.9% 2.3x 2.3x 8.2x 7.4x 22.2x 20.7xF-Secure 449 411 20.5% (7.5%) 2.5x 2.4x 12.1x 10.0x 20.7x 16.5x


Large Cap IT ServicesAccenture 24,350 20,444 15.4% 3.2% 0.9x 0.9x 6.1x 5.7x 14.2x 12.8xCap Gemini 7,190 6,182 8.5% (9.7%) 0.6x 0.6x 6.7x 5.6x 17.5x 13.2xCapita Group 6,895 8,446 16.3% 1.3% 1.9x 1.9x 11.8x 10.9x 17.0x 15.3xComputer Sciences 6,442 7,901 15.0% 2.2% 0.5x 0.5x 3.2x 3.1x 8.0x 7.5xAtos Origin 2,973 3,129 10.2% (12.6%) 0.5x 0.5x 4.8x 4.3x 12.3x 9.9x

M 13 1% (3 1%) 0 9 0 9 6 5 5 9 13 8 11 7Mean 13.1% (3.1%) 0.9x 0.9x 6.5x 5.9x 13.8x 11.7xMedian 15.0% 1.3% 0.6x 0.6x 6.1x 5.6x 14.2x 12.8x

Mid Cap IT ServicesCGI 3,924 3,936 18.8% 7.9% 1.0x 0.9x 5.4x 5.4x 11.7x 10.7xIndra Sistemas 2,892 3,190 12.9% (11.3%) 1.0x 1.0x 7.6x 7.3x 11.3x 10.9xLogica 2,815 3,406 8.9% (4.9%) 0.6x 0.6x 6.8x 6.3x 9.5x 9.0xTieto 1,276 1,401 10.4% (11.5%) 0.6x 0.6x 6.2x 5.4x 14.7x 10.5xSopra 797 958 9.9% (7.5%) 0.7x 0.6x 6.7x 6.0x 11.2x 9.6xGroupe Steria 726 1,002 9.3% (8.8%) 0.5x 0.5x 5.1x 4.7x 9.5x 8.1xGFI Informatique 192 330 7.2% (10.9%) 0.4x 0.4x 5.4x 4.7x 8.5x 6.8x

Mean 11.1% (6.7%) 0.7x 0.7x 6.2x 5.7x 10.9x 9.4xMedian 9 9% (8 8%) 0 6x 0 6x 6 2x 5 4x 11 2x 9 6xMedian 9.9% (8.8%) 0.6x 0.6x 6.2x 5.4x 11.2x 9.6x

Offshore IT ServicesTata 36,776 35,160 29.3% 15.1% 4.8x 4.3x 16.4x 13.8x 21.5x 19.1xInfosys 35,585 32,136 34.2% 14.4% 6.1x 5.3x 17.7x 15.1x 24.9x 20.7xWipro 21,414 20,373 22.2% 12.5% 3.2x 2.9x 14.2x 12.9x 19.1x 17.2xCognizant 18,577 17,382 21.0% 36.5% 3.9x 3.4x 18.5x 15.1x 27.8x 24.2xHCL 5,989 6,122 19.0% 20.5% 2.1x 1.9x 10.9x 8.9x 20.3x 14.5x



Communications

5%Diversified Communication Equipment 4.6%Mobile Content / Solutions Providers 3.4%Digital Broadband (0.3% )Mobile Infrastructure Software (0.4% )


(5%)

0%

Mobile Infrastructure Software (0.4% )

(10%)11 Aug 17 Aug 23 Aug 29 Aug 04 Sep

Digital Broadband Diversified Communication Equipment

Mobile Infrastructure Software Mobile Content / Solutions Providers

10%

15%

20%


Diversified Communication Equipment (1.4% )Mobile Infrastructure Software (1.4% )Mobile Content / Solutions Providers (10.6% )Digital Broadband (19.0% )

Last Twelve Months Performance

(20%)

(15%)

(10%)

(5%)

0%

5%

(30%)

(25%)

( )


Digital Broadband Diversified Communication Equipment


6Source: Capital IQ, 9 September 2010.

Communications(Continued)


Digital BroadbandLogitech 2,815 2,492 10.8% 25.2% 1.1x 1.0x 10.0x 8.7x NM NMKudelski 1,410 1,666 16.3% 10.4% 1.5x 1.4x 9.1x 7.9x 16.1x 12.5xTomTom 1 303 1 825 19 9% (11 8%) 1 0x 1 0x 4 9x 4 9x 7 7x 7 4x


TomTom 1,303 1,825 19.9% (11.8%) 1.0x 1.0x 4.9x 4.9x 7.7x 7.4xPace 962 817 10.5% 5.1% 0.4x 0.4x 4.1x 3.4x 9.3x 7.9xTechnicolor 397 2,022 13.9% (16.3%) 0.5x 0.5x 3.4x 3.2x 9.5x 11.5xParrot 245 136 11.3% 5.7% 0.5x 0.5x 4.7x 4.4x 16.8x 15.8xAdvanced Digital Broadcast 138 83 9.5% 8.1% 0.2x 0.2x 2.1x 1.9x 8.8x 7.2x


Diversified Communication EquipmentNokia 36,521 33,125 9.5% (9.5%) 0.6x 0.6x 6.6x 5.5x 20.1x 13.8xLM Ericsson Telephone 35,114 30,684 15.3% (2.3%) 1.1x 1.0x 7.1x 6.2x 19.3x 13.7xAlcatel-Lucent 6,325 7,145 6.5% (9.6%) 0.4x 0.4x 5.6x 3.9x NM 13.4xADTRAN 2 104 1 925 26 3% 19 9% 3 3x 3 1x 12 6x 10 9x 21 0x 18 6xADTRAN 2,104 1,925 26.3% 19.9% 3.3x 3.1x 12.6x 10.9x 21.0x 18.6xCommScope 1,989 2,790 14.9% 6.3% 0.9x 0.8x 5.8x 5.1x 11.5x 9.1xCIENA 1,303 2,019 2.6% 122.6% 1.4x 1.2x NM 25.4x NM 24.3xADC Telecommunications 1,231 1,273 11.7% 6.2% 1.1x 1.1x 9.5x 8.9x 23.3x 16.0x


Mobile Infrastructure SoftwareQUALCOMM 65,652 56,995 41.7% 5.7% 5.1x 4.9x 12.2x 11.3x 17.5x 15.7xAmdocs 5,487 4,263 21.7% 7.1% 1.4x 1.4x 6.5x 6.2x 12.8x 11.9xVeriSign 5,337 4,600 49.6% (26.0%) 6.0x 6.3x 12.2x 11.0x 26.8x 20.9xSyniverse 1,530 1,917 41.3% 30.6% 3.0x 2.9x 7.4x 6.7x 11.8x 10.7xSonus Networks 903 569 7.7% 7.5% 2.3x 2.2x 30.1x 24.7x NM 45.3xSo us Netwo s 903 569 7.7% 7.5% .3 . 30. .7 N 5.3Tekelec 760 529 20.1% (6.1%) 1.2x 1.2x 6.0x 5.7x 13.6x 11.5xSynchronoss Technologies 505 418 27.2% 27.8% 2.5x 2.2x 9.3x 6.9x 26.3x 18.8xIntec Telecom Systems 300 196 12.4% (12.3%) 0.9x 0.8x 6.9x 5.7x 15.8x 15.6xSmith Micro Software 280 225 35.1% 19.5% 1.8x 1.7x 5.0x 4.5x 10.4x 9.7xTeleCommunication Systems 165 253 17.6% 35.5% 0.6x 0.6x 3.5x 3.0x 8.3x 6.6xOpenwave Systems 138 33 1.4% (13.8%) 0.2x 0.2x 14.2x 2.6x NM NMRedknee Solutions 82 66 9.3% 8.3% 1.2x 1.1x 13.4x NA 29.0x NM

Mean 23.8% 7.0% 2.2x 2.1x 10.6x 8.0x 17.2x 16.7xMedian 20.9% 7.3% 1.6x 1.5x 8.3x 6.2x 14.7x 13.7x Mobile Content / Solutions ProvidersArt Technology 591 446 21.2% 11.2% 2.2x 2.1x 10.5x 8.4x 19.6x 15.9xgyOpera Software 496 409 15.8% 5.1% 3.7x 3.2x 23.3x 11.9x 40.3x 21.2xGameLoft 338 305 17.1% (6.7%) 1.8x 1.7x 10.5x 8.5x 23.4x 17.5xDanal 202 184 16.8% 20.3% 2.1x 2.1x 12.6x 9.8x NM NMBuongiorno 119 202 13.9% (6.1%) 0.6x 0.6x 4.2x 4.2x NM NMSynchronica 18 17 11.4% 124.8% 1.2x 0.6x 10.7x 2.0x NM NM



Internet and Digital Media

15%


g

Online Travel 12.9%Ecommerce 12.6%Chinese Internet Leaders 6.7%Online Gambling 4.7%Intermediation and Comparison 4.3%Global Internet Leaders 3 7%

0%

5%

10%

Global Internet Leaders 3.7%Online Marketing 2.7%Interactive Entertainment 0.4%Online Classifieds 0.0%Content Providers / Communities (2.3% )

(10%)

(5%)

11 Aug 17 Aug 23 Aug 29 Aug 04 SepGlobal Internet Leaders EcommerceOnline Travel Online MarketingContent Providers / Communities Intermediation and ComparisonOnline Classifieds Chinese Internet LeadersOnline Gambling Interactive Entertainment

Last Twelve Months PerformanceEcommerce 55.2%Online Travel 30.3%Global Internet Leaders 27.1%Online Gambling 25.0%Intermediation and Comparison (1.2% )Chi I t t L d (7 5% )

10%

20%

30%

40%

50%

60% Chinese Internet Leaders (7.5% )Content Providers / Communities (9.5% )Online Marketing (16.6% )Interactive Entertainment (28.4% )Online Classifieds (33.4% )

(40%)

(30%)

(20%)

(10%)

0%

Sep 2009 Dec 2009 Mar 2010 Jun 2010 Sep 2010Gl b l I t t L d E

8

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

Source: Capital IQ, 9 September 2010.

Internet and Digital Mediag(Continued)


Global Internet LeadersApple 240,331 215,906 29.6% 48.7% 3.1x 2.8x 10.5x 8.8x 16.7x 14.6xMicrosoft 207,772 176,493 42.7% 11.4% 2.7x 2.6x 6.3x 5.8x 10.9x 9.5xG l 151 921 120 075 45 0% 18 2% 4 3 4 0 9 6 8 3 17 3 15 2


Google 151,921 120,075 45.0% 18.2% 4.3x 4.0x 9.6x 8.3x 17.3x 15.2xAmazon 62,866 57,334 7.6% 34.9% 1.7x 1.6x 22.9x 17.9x NM 37.4xeBay 31,885 27,342 35.6% 2.9% 3.0x 2.9x 8.5x 7.8x 15.2x 13.9xBaidu 29,173 28,427 55.5% 74.9% 24.9x 19.7x 44.9x 29.0x NM 39.1xYahoo! 18,404 15,950 35.3% (27.9%) 3.4x 3.4x 9.7x 8.7x 20.5x 18.1xAlibaba 10,013 8,816 33.5% 40.8% 11.2x 9.8x 33.4x 24.5x 45.6x 34.4xIAC 2,740 1,401 15.6% 16.9% 0.9x 0.8x 5.6x 4.9x 32.7x 21.3x


EcommerceAmazon 62,866 57,334 7.6% 34.9% 1.7x 1.6x 22.9x 17.9x NM 37.4xeBay 31 885 27 342 35 6% 2 9% 3 0x 2 9x 8 5x 7 8x 15 2x 13 9xeBay 31,885 27,342 35.6% 2.9% 3.0x 2.9x 8.5x 7.8x 15.2x 13.9xNetflix 7,628 7,602 15.9% 29.3% 3.5x 3.1x 22.1x 17.0x NM 38.9xMercadolibre 3,145 3,109 37.6% 31.6% 13.7x 11.7x 36.3x 26.6x NM 47.2xVistaprint 1,578 1,411 19.8% 17.8% 2.0x 1.8x 10.0x 8.0x 19.2x 15.8xGSI Commerce 1,553 1,647 10.2% 34.1% 1.2x 1.2x 12.0x 9.7x NM 47.5xOpenTable 1,290 1,188 32.9% 33.2% 13.0x 11.6x 39.5x 27.1x NM NMOcado 1,260 1,426 3.9% 27.4% 1.8x 1.5x 45.9x 23.1x NM NMDigital River 1,188 844 17.0% (13.8%) 2.4x 2.4x 14.2x 9.6x 39.0x 23.9xAsos 1,165 1,141 10.4% 36.8% 2.6x 2.4x 24.5x 18.8x 44.2x 34.6xShutterfly 640 486 19.9% 16.6% 1.7x 1.6x 8.5x 7.2x NM 35.1xBlue Nile 608 559 9.3% 10.1% 1.7x 1.6x 18.1x 16.1x 44.4x 36.0xYOOX 461 448 9.7% 22.8% 1.7x 1.4x 17.2x 12.4x 41.5x 27.3xOverstock 344 313 2 9% 26 4% 0 3x 0 3x 9 7x 8 0x 23 1x 16 3xOverstock 344 313 2.9% 26.4% 0.3x 0.3x 9.7x 8.0x 23.1x 16.3xDrugstore 161 144 4.0% 12.0% 0.3x 0.3x 7.7x 6.3x NM 16.9x


Online TravelPriceline 15,668 15,239 27.2% 29.5% 5.1x 4.6x 18.6x 15.0x 27.8x 22.6xExpedia 7,266 6,995 29.0% 10.3% 2.1x 2.0x 7.4x 6.6x 15.2x 13.0xCtrip 5,740 5,390 40.0% 53.4% 12.7x 11.2x 31.8x 23.4x 40.2x 31.0xWotif 910 814 58.0% 13.0% 6.2x 5.9x 10.6x 9.6x 17.8x 15.9xOrbitz 564 924 20.4% 2.6% 1.2x 1.2x 6.0x 5.5x 44.6x 22.1xTravelzoo 347 322 13.1% 13.1% 3.0x 2.8x 22.9x 21.3x 40.0x 32.0xhotel de 59 47 5 9% 0 3% 1 0x 1 0x 17 2x 10 4x 31 4x 19 8xhotel.de 59 47 5.9% 0.3% 1.0x 1.0x 17.2x 10.4x 31.4x 19.8x


Online MarketingValueClick 938 771 28.2% (1.4%) 1.8x 1.8x 6.6x 5.9x 18.2x 16.6xConstant Contact 527 413 12.8% 34.4% 2.4x 2.1x 18.6x 12.3x NM 27.7xInfoSpace 259 34 13.0% 23.2% 0.1x 0.1x 1.0x 1.0x 44.6x 32.4xTradeDoubler 174 157 4.3% (6.2%) 0.4x 0.4x 9.2x 6.8x 17.2x 12.0xHi-Media 162 204 8.3% 17.4% 0.7x NA 8.5x 6.7x 13.9x 9.9xMarchex 143 110 7.5% 1.3% 1.2x 1.1x 15.5x 7.0x NM NM1000mercis 132 117 33.5% 16.6% 2.9x 2.9x 8.6x 7.5x 14.0x 12.6xAdLink Internet Media 120 116 8.5% (17.9%) 0.7x 0.7x 8.6x 6.9x 22.6x 13.2xd e e ed 0 6 8.5% ( 7.9%) 0.7 0.7 8.6 6.9 .6 3.ad pepper media 45 27 3.3% (4.3%) 0.4x 0.4x 12.8x 7.2x 24.0x 14.0x


Content Providers / CommunitiesWebMD Health 2,954 2,609 31.1% 20.8% 4.9x 4.8x 15.8x 13.0x NM 44.5xMeetic 591 540 23.7% 9.3% 2.2x 2.1x 9.2x 8.0x 16.1x 13.7xMove 305 263 10.9% (7.7%) 1.3x 1.3x 12.4x 9.3x 41.1x 26.1xThe Knot 251 121 10.6% 6.2% 1.1x 1.0x 10.1x 7.8x NM NMXING 185 116 30.5% 9.8% 1.7x 1.5x 5.5x 4.1x 19.0x 11.9x

Mean 21.4% 7.7% 2.2x 2.1x 10.6x 8.4x 25.4x 24.0xMedian 23 7% 9 3% 1 7x 1 5x 10 1x 8 0x 19 0x 19 9x


Median 23.7% 9.3% 1.7x 1.5x 10.1x 8.0x 19.0x 19.9x

Internet and Digital Mediag(Continued)


Intermediation and ComparisonMoneysupermarket 616 572 27.4% 0.2% 2.6x 2.4x 9.4x 8.6x 13.8x 12.4xLiquidity Services 388 317 12.8% 16.9% 1.1x 1.0x 8.6x 7.2x 24.0x 18.9xeHealth 272 128 21 5% 12 8% 0 8x 0 8x 3 9x 4 1x 19 6x 19 9x


eHealth 272 128 21.5% 12.8% 0.8x 0.8x 3.9x 4.1x 19.6x 19.9xGruppo MutuiOnline 247 214 48.1% 0.6% 3.1x 2.7x 6.4x 5.3x 12.3x 10.2x


Online ClassifiedsSEEK 2,363 2,418 43.9% 41.3% 8.3x 7.4x 18.8x 14.8x 25.5x 19.3xMonster 1,593 1,309 11.4% 0.3% 1.4x 1.4x 12.7x 8.2x NM 36.4xRightmove 1,191 1,156 66.1% 14.0% 9.0x 8.5x 13.7x 11.7x 19.7x 16.9xCarsales.au 1,096 1,083 53.4% 28.5% 8.7x 8.0x 16.3x 13.6x 24.7x 20.6x51job 758 552 27.1% 29.2% 3.8x 3.4x 13.9x 10.5x 23.8x 19.3xSeloger 635 643 52.6% 0.5% 6.1x 5.8x 11.6x 10.2x 19.1x 16.4xDice 447 434 38.9% 10.5% 3.6x 3.2x 9.2x 7.1x 26.6x 17.1xDice 447 434 38.9% 10.5% 3.6x 3.2x 9.2x 7.1x 26.6x 17.1xLoopNet 435 332 36.6% 0.8% 4.3x 4.1x 11.8x 9.8x 40.5x 34.2xAdenclassifieds 174 107 17.4% 1.5% 1.4x NA 7.9x 6.8x 25.8x 18.8x


Chinese Internet LeadersTencent 35,409 33,767 54.6% 55.4% 12.0x 10.7x 21.9x 16.6x 30.0x 22.7xBaidu 29,173 28,427 55.5% 74.9% 24.9x 19.7x 44.9x 29.0x NM 39.1xAlibaba 10,013 8,816 33.5% 40.8% 11.2x 9.8x 33.4x 24.5x 45.6x 34.4xNetease 4,998 3,820 52.7% 45.0% 4.8x 4.4x 9.1x 7.4x 15.8x 12.7xFocus Media 2,835 2,209 30.7% 12.6% 3.9x 3.9x 12.6x 9.4x 18.9x 15.2xSina 2,649 1,909 28.7% 11.0% 4.8x 4.4x 16.7x 13.5x 25.7x 21.2x, ,Shanda Interactive 2,309 1,018 31.6% 8.6% 1.2x 1.2x 3.9x 2.9x 18.6x 14.1xSohu 2,016 1,408 42.2% 15.7% 2.4x 2.1x 5.6x 4.6x 13.8x 11.4x


Online Gamblingbwin Interactive 1,889 1,657 23.6% 18.1% 2.6x 2.5x 11.2x 9.1x 20.2x 15.0xPartyGaming 1,836 1,650 29.0% 11.2% 3.3x 3.2x 11.5x 10.8x 16.8x 15.3xPlaytech 1,702 1,626 69.6% 9.2% 9.1x 8.5x 13.0x 11.7x 12.9x 12.5xSportingbet 531 454 22.7% (88.7%) 1.4x 1.4x 6.2x 5.7x 10.9x 9.9x888 229 161 14.3% 5.9% 0.6x 0.6x 4.3x 4.1x 7.7x 7.4x

M 31 8% (8 9%) 3 4 3 3 9 3 8 2 13 7 12 0Mean 31.8% (8.9%) 3.4x 3.3x 9.3x 8.2x 13.7x 12.0xMedian 23.6% 9.2% 2.6x 2.5x 11.2x 9.1x 12.9x 12.5x

Interactive EntertainmentActivision 13,725 10,879 35.2% 4.4% 2.4x 2.4x 6.9x 6.8x 15.3x 13.9xElectronic Arts 5,377 3,647 9.7% 3.4% 1.0x 0.9x 10.2x 6.1x 37.7x 19.5xUbisoft Entertainment 892 798 23.2% (16.1%) 0.7x 0.6x 2.9x 1.7x NM 30.7xTake-Two Interactive Software 794 664 11.8% 17.5% 0.6x 0.7x 4.9x 4.6x 10.4x 9.4xTHQ 244 128 (2.7%) (16.9%) 0.2x 0.1x NM 3.9x NM 8.5xAtari 100 112 20.7% 166.3% 0.2x NA 1.1x NA NM NM



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