SECTOR SPOTLIGHT CHIP KELSO. Software/Internet Outsourcing Services Transaction/Data Processing Staffing/Recruiting Services JON STEELE

Transcription

1 JANUARY 2016 CHIP KELSO Managing Director Head of HCM JON STEELE Managing Director Co-Head of Technology Services SECTOR SPOTLIGHT Software/Internet Outsourcing Services Transaction/Data Processing Staffing/Recruiting Services LESLIE ANN B. CURRY Vice President Technology Services GARRETT DENINNO Vice President Technology Services Raymond James & Associates, Inc., member New York Stock Exchange/SIPC

2 Representative Transactions Sales / Recapitalizations Payment and Communication Services (PCS) Business A portfolio company of September 2015 August 2015 August 2015 July 2015 December 2014 October 2014 Has sold its subsidiary, Workday Services, to November 2012 December 2011 April 2011 January 2011 July 2010 June 2009 Private Placements Has received an June 2015 December 2014 June 2014 April 2014 April 2014 March 2013 December 2012 August 2012 May 2012 January 2012 Public Equity Raises $33,000,000 Bookrunner $111,265,000 $130,200,000 $73,500,000 $109,900,560 $115,000,000 Senior $90,010,000 Bookrunner $61,042,000 Initial Public Offering October 2015 Sept / Dec August 2015 / July 2014 May 2015 May 2015 December 2014 $146,510,000 Initial Public Offering Senior $202,240,000 Initial Public Offering $137,729,750 Initial Public Offering $150,394,125 Initial Public Offering $21,000,000 Underwriter $63,480,000 Initial Public Offering Senior $213,900,000 July 2014 March 2014 March 2014 September 2013 Sept / May 2013 October 2009 Past performance is not indicative of future results. 2

3 HUMAN CAPITAL MARKET UPDATE / 2015E Revenue / 2015E EBITDA P/E 2015E 4.9x 4.7x x 11.9x 15.5x 9.6x x 19.6x 25.2x 17.3x 3.0x 1.0x 1.9x 0.5x 8.0x 1 1 Software / Internet Outsourcing Services Transaction / Data Processing Staffing / Recruiting Services Software / Internet Outsourcing Transaction Services / Data Processing Staffing / Recruiting Services Software / Internet Outsourcing Transaction Services / Data Processing Staffing / Recruiting Services 1-Year Historical Composite Stock Performance (%) as of 12/31/ Nasdaq 5.7% S&P 500 (0.7%) HCM Software / Internet (5.7%) HCM Outsourcing Services 1.9% HCM Transaction / Data Processing 6.6% Staffing / Recruiting Services 11.5% Indexed to 100 as of 12/31/ % 6.6% 5.7% 1.9% (0.7%) (5.7%) Operating / Trading Statistics Software / Internet Outsourcing Services Transaction / Data Processing Staffing / Recruiting Services 2015E Revenue Growth 16.1% 2.3% 8.7% 4.5% 2016E Revenue Growth 17.3% 7.8% 7.8% 6.8% 2015E EBITDA Margin 22.9% 17.8% 36.6% 5.1% 2016E EBITDA Margin 23.1% 18.9% 37.3% 5.7% % 52 Week High 81.1% 86.1% 91.3% 87.3% Debt / 2015E EBITDA 1.4x 2.2x 1.4x 0.8x Software / Internet Outsourcing Services Transaction / Data Processing Staffing / Recruiting Services Top 3 Performers, by Stock Performance Last Month SEEK Limited 11.5% Insperity, Inc. 11.6% WageWorks, Inc. 6.7% Hudson Global, Inc 22.7% Xero Limited. 7.8% ADP -1.8% Verisk Analytics, Inc. 2.6% USG People NV 21.3% Castlight Health, Inc. 6.7% TriNet Group, Inc. -2.0% Equifax Inc. -0.1% Synergie SA 10.6% Last 3 Months Xero Limited. 41.4% TriNet Group, Inc. 15.2% Edenred SA 16.4% Heidrick & Struggles 39.9% Paylocity Holding Corporation 35.2% Paychex, Inc. 11.0% Equifax Inc. 14.6% USG People NV 37.2% SEEK Limited 32.8% Insperity, Inc. 9.6% Paychex, Inc. 11.0% Proffice AB 32.5% Last 12 Months Ebix Inc. 93.0% Insperity, Inc. 42.1% Equifax Inc. 37.7% Staffline Group plc 70.3% XING AG 65.0% CBIZ, Inc. 15.2% Verisk Analytics, Inc. 20.0% USG People NV 65.2% Paylocity Holding Corporation 55.3% Paychex, Inc. 14.6% Paychex, Inc. 14.6% Pasona Group Inc. 60.9% 3

4 HCM SOFTWARE / INTERNET 1-Year Historical Stock Performance HCM Software / Internet (5.7%) S&P 500 (0.7%) NASDAQ 5.7% Indexed to 100 as of 12/31/2014 NASDAQ S&P 500 HCM Software / Internet Quarterly Revenue Growth Historical / LTM Revenue Multiples 35.0% 30.0% 25.0% Sequential Year-over-Year Median = 4.3x 20.0% 15.0% 3.0x 10.0% 5.0% 1.0x 0.0% Historical / LTM EBITDA Multiples Historical LTM P/E Multiples x 1 Median = 14.7x 3 3 Median = 25.4x x HCM Software / Internet Composite: AIM:BDI, ASUR, ASX:SEK, BNFT, CALD, CSLT, CSOD, DHX, EBIX, EHTH, HSTM, INTU, JOBS, LNKD, LSE:SGE, MWW, NZSE:XRO, ORCL, PAYC, PCTY, SAP, TSX:HGN, ULTI, WDAY, XTRA:O1BC, XTLY 4

5 SOFTWARE / INTERNET: DETAILED VALUATION MULTIPLES AND METRICS Total Price % of 52 Market Enterprise 2015E 2016E 2015E 2016E Market Price 2015E P/E Company 12/31/2015 Week High Cap ($MM) Value ($MM) Revenue Revenue EBITDA EBITDA 2015E EPS 2016E EPS Growth Rate Oracle Corporation $ % $ 153,470.6 $ 143, x 3.8 x 8.3 x 8.3 x 14.4 x 13.6 x 1.7 SAP SE , , LinkedIn Corporation , , NM 26.6 NM NM 1.7 Intuit Inc , , Workday, Inc , , NM NM NM NM NM Sage Group plc , , The Ultimate Software Group, Inc , , NM 28.9 NM NM 2.7 SEEK Limited , , Paycom Software, Inc , , NM NM NM NM 2.7 Paylocity Holding Corporation , , NM NM NM NM 23.2 Cornerstone OnDemand, Inc , , NM NM NM NM NM Xero Limited , , NM NM NM NM NM Ebix Inc , , job Inc , , Benefitfocus, Inc , , NM NM NM NM NM XING AG , Callidus Software Inc , NM NM NM NM 2.5 Monster Worldwide, Inc Healthstream Inc NM NM 4.1 DHI Group, Inc Castlight Health, Inc NM NM NM NM NM Xactly Corporation NM NM NM NM NM ehealth, Inc Halogen Software Inc NM NM NM NM NA Bond International Software plc NA 4.8 NA 12.9 NA NA Asure Software, Inc NM 41.0 NA Mean 5.4 x 4.5 x 12.6 x 13.7 x 22.3 x 22.0 x 3.4 Median SOFTWARE / INTERNET: SELECTED M&A AND CAPITAL MARKETS ACTIVITY Date Transaction / Announced Type Acquiror / Investor Target / Issuer Value ($MM) Revenue EBITDA 12/8/2015 PP Canvas Ventures, Sequoia Capital, Webb Inv. Network Everwise $ 8.0 NA NA 12/8/2015 M&A Careers360 NoPaperForms NA NA NA 12/3/2015 PP Georgian Partners, EDBI, Flare Capital Partners Welltok Inc NA NA 12/2/2015 PP Khosla Ventures, Mercer LLC Pymetrics 5.0 NA NA 11/24/2015 PP Renren, Chicago Ventures, DRW Ventures, others Shiftgig 22.0 NA NA 11/19/2015 M&A Greenhouse Software Parklet NA NA NA 11/16/2015 PP OMERS Ventures, Version One Ventures, Point Nine Capital Octopusapp Inc. (Jobber) 6.0 NA NA 11/12/2015 EQTY NA Paycom Software NA NA 11/11/2015 PP Square Peg Capital, Bessemer Venture Partners, others Fiverr 60.0 NA NA 10/28/2015 PP Goldcrest Capital, True Ventures Connectifier, Inc. 6.0 NA NA 10/27/2015 PP Goldman Sachs, Merchant Banking Division TalentSoft SA 27.6 NA NA 10/20/2015 M&A Enrollment Advisors, Inc. HighRoads, Inc., Employer Technology Division NA NA NA 10/20/2015 PP OMERS Ventures, Saturn Partners, prior investors Kaleo Software 7.0 NA NA 10/12/2015 M&A SAP SE Multiposting SASU NA NA NA 10/8/2015 PP Andreessen Horowitz LLC Pulse Software, Inc. (Reflektive) 3.6 NA NA Type Key: M&A Merger & Acquisition, PP Private Placement, SHLF Shelf Registration, IPO Initial Public Offering, EQTY Follow-on Equity Offering, DEBT Debt Offering, CVT Convertible Debt SOFTWARE / INTERNET: OTHER RECENT NEWS AND EVENTS Date Company News 12/15 LinkedIn (NYSE:LNKD) LinkedIn, a social network focused around the working world with nearly 400 million members, is well known for how it uses algorithms to suggest potential business connections and jobs based on user profiles. Now, it s injecting more data analytics into another part of its platform: job listings. LinkedIn has taken the wraps off a new version of its Jobs section, where - alongside details about the job itself - users can now see more data about the company, who works there, and how they compare to previous applicants. For LinkedIn, the thinking seems to be that creating a better job hunting experience could lead to the feature being used more. And in turn, that could lead more employers to paying to post listings in the first place (or so LinkedIn hopes). And given that there are dozens of places online to look for jobs today, LinkedIn understands that it needs to go beyond the basics in order to stand out. The new features include a chance to look at profiles of existing employees at the company who hold similar jobs, and potentially connect with them. Users can also see who in their network is connected through to the company. Premium features, which LinkedIn restricts to users of its Premium tier, will give more insights about the company and wider hiring policies: company s growth rate, average tenure, and top schools and companies it hires from so that you can determine if a company is truly the right fit for you. The bigger picture with LinkedIn is that the company is trying to build out a much stronger platform, using its existing strength in big data and sheer number of data points. (TechCrunch) 5

6 OUTSOURCING SERVICES 1-Year Historical Stock Performance HCM Outsourcing Services 1.9% S&P 500 (0.7%) NASDAQ 5.7% Indexed to 100 as of 12/31/ NASDAQ HCM Outsourcing Services S&P % Quarterly Revenue Growth Sequential Year-over-Year 2.5x Historical / LTM Revenue Multiples Median = 2.1x 12.0% 9.0% 1.5x 6.0% 1.0x 3.0% 0.5x 0.0% Historical / LTM EBITDA Multiples Historical LTM P/E Multiples 1 1 Median = 11.7x 3 2 Median = x 1 1 HCM Outsourcing Services Composite: ADP, AON, CBZ, NSP, PAYX, TNET, TSX:MSI 6

7 OUTSOURCING SERVICES: DETAILED VALUATION MULTIPLES AND METRICS Total Price % of 52 Market Enterprise 2015E 2016E 2015E 2016E Market Price 2015E P/E Company 12/31/2015 Week High Cap ($MM) Value ($MM) Revenue Revenue EBITDA EBITDA 2015E EPS 2016E EPS Growth Rate Automatic Data Processing, Inc. $ % $ 39,970.9 $ 38, x 3.2 x 17.0 x 15.6 x 28.4 x 24.4 x 2.2 Aon plc , , Paychex, Inc , , TriNet Group, Inc , , Insperity, Inc , Morneau Shepell Inc NA CBIZ, Inc Mean 2.4 x 2.2 x 12.0 x 10.8 x 20.5 x 18.2 x 1.5 Median OUTSOURCING SERVICES: SELECTED M&A AND CAPITAL MARKETS ACTIVITY Date Transaction / Announced Type Acquiror / Investor Target / Issuer Value ($MM) Revenue EBITDA 12/21/2015 M&A Oasis Outsourcing, Inc. Doherty Employment Group, Inc. NA NA NA 12/14/2015 M&A Oasis Outsourcing, Inc. A1HR, LLC NA NA NA 12/1/2015 M&A Paychex Advance Partners NA NA NA 12/1/2015 M&A Morneau Shepell Bensinger, DuPont & Associates NA NA NA 12/1/2015 M&A CBIZ, Inc. The Cottonwood Group NA NA NA 11/24/2015 M&A Entertainment Benefits Group Working Advantage NA NA NA 11/13/2015 M&A Goldman Sachs, Park Square Capital Northgate NGA NA NA NA 11/9/2015 DEBT NA Aon $ NA NA 10/23/2015 SHLF NA Paychex, Inc NA NA 10/8/2015 M&A Morgan Stanley Private Equity CoAdvantage, Inc. NA NA NA 10/5/2015 M&A Mercer Human Resources Business Solutions NA NA NA 10/1/2015 M&A CBIZ, Inc. Pension Resource Group, Inc. NA NA NA 9/30/2015 PP Eurazeo Croissance, Accel Partners, others PeopleDoc 28.0 NA NA 9/30/2015 M&A MYOB Group Limited Information Management Services Limited 6.2 NA NA 9/15/2015 PP Kennet Partners ThinkHR 12.0 NA NA 9/9/2015 M&A Tenex Capital Management Progressive Employer Management Company (PEMCO) NA NA NA 9/3/2015 SHLF NA Aon NA NA NA 7/22/2015 M&A Morneau Shepell Inc. Ceridian Health & Welfare Benefits Administration business NA NA NA 7/21/2015 M&A PSI Services LLC Innovative Exams LLC NA NA NA 7/9/2015 M&A Patriot National, Inc. CWIBenefits 7.4 NA NA 7/9/2015 M&A KPMG Towers Watson Human Resources Services Delivery practice NA NA NA 7/9/2015 M&A Willis Group Holdings Towers Watson 8, x 10.1 x 6/10/2015 M&A Crawford Advisors, LLC workforcetactix, Inc. NA NA NA 6/1/2015 M&A MYOB Holdings Pty Ace Payroll Plus 10.0 NA NA 5/26/2015 M&A Mercer Kepler Associates NA NA NA 5/20/2015 M&A AmWINS Group Impact Interactive NA NA NA 5/4/2015 M&A Zuman SuperiorHR NA NA NA 5/1/2015 M&A Nueterra Benefit Management Inc. (BMI) NA NA NA 4/27/2015 M&A Towers Watson & Co. Saville Consulting Group 63.9 NA NA 4/16/2015 PP Fidelity Management & Research Appirio 35.0 NA NA 4/3/2015 M&A WilsonHCG Head2Head NA NA NA 4/1/2015 M&A Everstone Capital Asia Pacific Payroll Business of Aon NA NA NA Type Key: M&A Merger & Acquisition, PP Private Placement, SHLF Shelf Registration, IPO Initial Public Offering, EQTY Follow-on Equity Offering, DEBT Debt Offering, CVT Convertible Debt OUTSOURCING SERVICES: OTHER RECENT NEWS AND EVENTS Date Company News 12/14 Aon (NYSE:AON) Aon Risk Solutions is looking to ramp up its multimillion-dollar spending on data analytics research, as the global insurance broker increases efforts to combat disrupters and keep up with how customers' risks are rapidly changing. Lambros Lambrou, Australia chief executive of Aon Risk Solutions said traditional insurance business models are under threat from technology groups eyeing entry into the market, forcing companies to find new ways to keep their customer bases. Aon is pumping about $US350 million a year into data analytics, which helps the group finetune its risk management models and understand the trends impacting clients and its own business. "If we do nothing as an industry, we are going to lose the race," Mr Lambrou said. "We're focusing on six key areas talent, retirement, health, risk, capital and data and analytics. We've spent $US350 million a year on data to better understand and predict trends and this will only go up as investments across the other areas also develop. The company has built two innovation centres, in Dublin and Singapore, to tap its database of customers' risk profiles, buying patterns and other information to understand how risk is being managed and insured. With issues such as cyber threats and terrorism on the rise, the company is using its data as a way to predict forward trends and better manage risk. (Sidney Morning Herald) 7

8 TRANSACTION / DATA PROCESSING 1-Year Historical Stock Performance HCM Transaction / Data Processing 6.6% S&P 500 (0.7%) NASDAQ 5.7% Indexed to 100 as of 12/31/ HCM Transaction / Data Processing NASDAQ 100 S&P Quarterly Revenue Growth Historical / LTM Revenue Multiples 20.0% Sequential Year-over-Year 7.0x 16.0% 12.0% Median = 4.1x 8.0% 3.0x 4.0% 1.0x 0.0% Historical / LTM EBITDA Multiples Historical LTM P/E Multiples 18.0x 1 Median = 14.6x 3 3 Median = 27.8x x 1 1 HCM Transaction / Data Processing Composite: ADP, CEB, EFX, ENXTPA: EDEN, HAWK, HQY, PAYX, VRSK, WAGE 8

9 TRANSACTION / DATA PROCESSING: DETAILED VALUATION MULTIPLES AND METRICS Total Price % of 52 Market Enterprise 2015E 2016E 2015E 2016E Market Price 2015E P/E Company 12/31/2015 Week High Cap ($MM) Value ($MM) Revenue Revenue EBITDA EBITDA 2015E EPS 2016E EPS Growth Rate Automatic Data Processing, Inc. $ % $ 39,970.9 $ 38, x 3.2 x 17.0 x 15.6 x 28.4 x 24.4 x 2.2 Paychex, Inc , , Verisk Analytics, Inc , , Equifax Inc , , Edenred SA , , Blackhawk Network Holdings, Inc , , CEB Inc , , HealthEquity, Inc , , NM NM 1.9 WageWorks, Inc , , Mean 5.2 x 4.5 x 16.7 x 14.3 x 24.8 x 22.4 x 1.9 Median TRANSACTION / DATA PROCESSING: SELECTED M&A AND CAPITAL MARKETS ACTIVITY Date Transaction / Announced Type Acquiror / Investor Target / Issuer Value ($MM) Revenue EBITDA 11/17/2015 PP Recruit DataRobot NA NA NA 11/16/2015 M&A Protiviti (Robert Half International) Decision First Technologies NA NA NA 11/3/2015 M&A SterlingBackcheck EmployeeScreenIQ NA NA NA 10/23/2015 M&A HealthEquity The Bancorp Bank, Health Savings Account Portfolio $ 34.4 NA NA 9/30/2015 M&A Mercer Comptryx NA NA NA 9/21/2015 EQTY NA HealthEquity 88.5 NA NA 9/18/2015 M&A Equifax Veda Group Limited 1, x 19.2 x 9/11/2015 M&A CEB Inc. Wanted Technologies /9/2015 SHLF NA HealthEquity NA NA 9/8/2015 DEBT NA ADP NA NA 9/8/2015 DEBT NA ADP NA NA 9/3/2015 M&A Microsoft VoloMetrix NA NA NA 7/29/2015 M&A Great Hill Partners Reward Gateway /28/2015 M&A CEB Inc. CEO Forum Group NA 6/29/2015 M&A Silver Lake Cast & Crew Entertainment Services NA NA NA 6/17/2015 M&A CEB Inc. Sunstone Analytics NA NA NA 6/11/2015 M&A Blackhawk Network Holdings, Inc. Achievers, Inc. NA NA NA 3/8/2015 M&A First Colebrook Bank Abikay Business Solutions NA NA NA 3/2/2015 M&A Heartland Payment Systems Payroll 1, Inc. NA NA NA 2/23/2015 M&A Everstone Capital Management Asia/Pacific Payroll Business of Aon Hewitt NA NA NA 12/8/2014 M&A Verisk Analytics, Inc. Maplecroft 31.7 NA NA 11/13/2014 M&A Accurate Background, LLC Hirease, Inc. NA NA NA 11/5/2014 M&A Phoenix Strategy Investments PI Worldwide NA NA NA 10/20/2014 M&A Institutional Shareholder Services Incentive Lab, LLC NA NA NA 10/17/2014 M&A BTS Group AB Fenestra, Inc. 2.5 NA NA 9/23/2014 M&A Webster Financial Corp. HSA Business of JPMorgan Chase Bank NA NA NA 8/4/2014 PP Undisclosed Investors FlexWage Solutions 3.5 NA NA 8/1/2014 M&A WageWorks, Inc. CONEXIS Benefits Administrators NA NA 6/5/2014 M&A Lyceum Business Services BenePay NA NA NA Type Key: M&A Merger & Acquisition, PP Private Placement, SHLF Shelf Registration, IPO Initial Public Offering, EQTY Follow-on Equity Offering, DEBT Debt Offering, CVT Convertible Debt TRANSACTION / DATA PROCESSING: OTHER RECENT NEWS AND EVENTS Date Company News 12/10 HealthEquity, Inc. (NasdaqGS:HQY) Health savings solution provider, HealthEquity plans to expand at its Utah headquarters adding 200 jobs over the next six years, according to a statement from the Governor s Office of Economic Development. HealthEquity was founded in 2002 and is currently serving 1.6 million HSAs across 70 of the nations top health plans. HealthEquity plans to generate up to $6.75 million in capital investment through their expansion, according to the statement. HealthEquity is honored to call Utah home, said Jon Kessler, HealthEquity president and CEO. This great state offers a highly skilled and educated talent pool, proactive communities and a government that promotes business. These amenities have been central to our continued growth. HealthEquity may earn back up to 20 percent of the new state taxes that they will pay over the six years of the expansion through a post-performance Economic Development Tax Increment Finance (EDTIF) tax credit rebate. The Governor s Office of Economic Development has approved HealthEquity for a rebate of up to $569,917 as long as they meet the criteria of its agreement with the state. We congratulate HealthEquity on their continued growth, said Val Hale, executive director of GOED. We re always thrilled when successful companies not only start but also stay here. As more company leaders acknowledge Utah s business-friendly environment, they see their investment truly pays off. (Silicon Slopes) 9

10 STAFFING / RECRUITING SERVICES 1-Year Historical Stock Performance Staffing / Recruiting Services 11.5% S&P 500 (0.7%) NASDAQ 5.7% Indexed to 100 as of 12/31/ Staffing / Recruiting Services NASDAQ S&P Quarterly Revenue Growth Historical / LTM Revenue Multiples 40.0% 35.0% 30.0% Sequential Year-over-Year 0.7x 0.6x Median = 0.5x 25.0% 0.5x 20.0% 15.0% 10.0% 0.4x 0.3x 5.0% 0.2x 0.0% 0.1x (5.0%) (10.0%) Historical / LTM EBITDA Multiples Historical LTM P/E Multiples Median = 10.5x Median = 22.6x 8.0x HCM Staffing / Recruiting Services Composite: AHS, AIM:IPEL, AIM:MTEC, AIM:STAF, ASGN, CCRN, CDI, CTG, ENXTAM:BRNL, ENXTAM:RAND, ENXTAM:USG, ENXTPA:CEN, ENXTPA:SDG, HSII, HSON, ISE:DQ5, KELY.A, KFRC, KFY, LSE:HAS, LSE:HVN, LSE:MPI, LSE:RWA, LSE:STHR, MAN, OM:PROE B, RECN, RHI, SWX:ADEN, TBI, TSE:2168, TSE:2181,TSE:

11 STAFFING / RECRUITING SERVICES: DETAILED VALUATION MULTIPLES AND METRICS Total Price % of 52 Market Enterprise 2015E 2016E 2015E 2016E Market Price 2015E P/E Company 12/31/2015 Week High Cap ($MM) Value ($MM) Revenue Revenue EBITDA EBITDA 2015E EPS 2016E EPS Growth Rate North American Staffing / Recruiting Services ManpowerGroup Inc. $ % $ 6,637.8 $ 6, x 0.3 x 8.9 x 8.3 x 16.0 x 14.3 x 1.2 Robert Half International Inc , , On Assignment Inc , , AMN Healthcare Services Inc , , Korn/Ferry International , , TrueBlue, Inc , , Kforce Inc Kelly Services, Inc NA Cross Country Healthcare, Inc Resources Connection, Inc Heidrick & Struggles International Inc CDI Corp NM NM NA Computer Task Group Inc Hudson Global, Inc NM 10.4 NM NM NA Mean 0.7 x 0.6 x 9.7 x 8.5 x 19.3 x 16.1 x 1.1 Median International Staffing / Recruiting Services Recruit Holdings Co.,Ltd. $ % $ 16,692.3 $ 14, x 1.1 x 9.3 x 8.3 x 29.5 x 28.1 x 4.3 Adecco S.A , , Randstad Holding , , Temp Holdings Co., Ltd , , NA Hays plc , , Michael Page International plc , , USG People NV , , Groupe CRIT SA Brunel International NV NA Synergie SA SThree Plc Impellam Group PLC NA Staffline Group plc Robert Walters PLC NA Pasona Group Inc NA Matchtech Group Plc NA Proffice AB NA CPL Resources plc NA Harvey Nash Group plc NA STAFFING / RECRUITING SERVICES: SELECTED M&A AND CAPITAL MARKETS ACTIVITY Type Key: M&A Merger & Acquisition, PP Private Placement, SHLF Shelf Registration, IPO Initial Public Offering, EQTY Follow-on Equity Offering, DEBT Debt Offering, CVT Convertible Debt STAFFING / RECRUITING SERVICES: OTHER RECENT NEWS AND EVENTS Date Company News Mean 0.5 x 0.5 x 9.9 x 8.6 x 19.2 x 15.2 x 1.3 Median Date Transaction / Announced Type Acquiror / Investor Target / Issuer Value ($MM) Revenue EBITDA 12/31/2015 M&A General Employment Enterprises Inc. Paladin Consulting, Inc. NA NA NA 12/29/2015 M&A System One ALTA IT Services NA NA NA 12/23/2015 M&A Merit Resources, Inc. Portico Staffing Inc. NA NA NA 12/22/2015 M&A Recruit Holdings USG People NV $ 1, x 17.9 x 12/15/2015 M&A Lawyer s Staffing Accent Professional Recruiting NA NA NA 12/14/2015 M&A CorTech, LLC. Integrated Staffing Solutions, Inc. NA NA NA 12/10/2015 M&A ZRG Partners, Inc. Pyramid International SA NA NA NA 12/10/2015 M&A Med-Call Healthcare, Inc. Med Staff On-Call, LLC NA NA NA 12/8/2015 M&A Impellam Group Bartech Holding Corporation /3/2015 M&A William Creekmuir Pinnacle Search Partners NA NA NA 12/1/2015 M&A TrueBlue SIMOS Insourcing Solutions 67.5 NA NA 12/9 Field Nation Nearly 35% of today s total workforce is comprised of non-employee workers - including temps, freelancers and independent contractors - according to the annual State of Contingent Workforce Management research study released by Field Nation and Ardent Partners. In addition, 70% of enterprises expect the contingent workforce to grow steadily in the next 12 months. In today s market, only 18% of organizations cite strong visibility into their worker footprint, which is defined as visibility into all talent across the entire enterprise, including both traditional full-time employees and nonemployee workers, freelancers and independent talent. The majority of talent in 2015, 54%, is primarily concentrated in traditional workers and full-time employees, according to the report; however, that percentage is expected to decrease to 41% in 2017 while the share of talent primarily concentrated in the contingent workforce is expected to rise from 20% to 25%. Organizations with an even concentration of talent will increase from 26% in 2015 to 34% in 2017, the research found. (staffingindustry.com) 11

12 IT Supply Chain Services: Quarterly Update HUMAN CAPITAL MONTHLY UPDATE RAYMOND JAMES Full-service financial services firm with investment banking, equity research, institutional sales and trading, and asset management operations Founded in 1962; public since 1983 (NYSE: RJF) $5.2 billion in FY 2015 revenue; equity market capitalization of $8.3 billion Stable and well-capitalized platform; no government/tarp financing Industry-focused, knowledge-driven approach, backed by highly-ranked equity research team 21 domestic and international investment banking and institutional sales offices International operations in Brussels, Buenos Aires, Düsseldorf, Geneva, London, Paris, Sao Paulo, Toronto and Vancouver Acquisition of Morgan Keegan consolidated and strengthened Raymond James leadership in the middle market EQUITY CAPITAL MARKETS Over 500 Equity Capital Markets professionals Over 240 investment bankers in the U.S. Over 100 institutional sales and sales traders in the U.S. and Europe: Bulge-bracket distribution capability Approximately 25% institutional equity commissions from Europe Over 6,200 financial advisors; offices in all 50 states Greenwich Associates ranked #2 in overall quality of analyst service TECHNOLOGY SERVICES INVESTMENT BANKING GROUP Eight senior-level investment bankers with over 105 years of combined experience; located in Atlanta and Boston Services: Mergers & Acquisitions (sell-side & buyside advisory); Public Equity and Debt Offerings; Private Placements of Equity and Debt; Divestitures; Board Advisory Services; Recapitalizations and Restructurings 142 completed transactions since February 2010: 104 M&A advisory and private placement services transactions representing a total value of over $14.6 billion 38 public equity and debt offerings raising over $9.9 billion in proceeds NOTES & DISCLOSURES Sources of data include Capital IQ, FactSet and other news organizations. Information obtained from third-party sources is considered reliable, but we do not guarantee that the information herein is accurate or complete. This report was prepared within Raymond James & Associates Investment Banking Department and is for information purposes only. This report is not a product of Raymond James & Associates Research Department; recipients of this report should not interpret the information herein as sufficient grounds for an investment decision or any other decision. The report shall not constitute an offer to sell or the solicitation of an offer to buy any of the securities mentioned herein; past performance does not guarantee future results. Any performance mentioned does not include transaction fees and costs which would reduce an investor s return. An investment cannot be made directly in a market index. EBIT: Earnings Before Interest and Taxes EBITDA: Earnings Before Interest, Taxes, Depreciation and Amortization EPS: Earnings per Share LTM: Last Twelve Months NA: Not Applicable NM: Not Meaningful PE: Price Earnings Ratio : Total Enterprise Value 12