January 15, 2015 www.jegi.com

Since 1987

2015 JEGI Media & Technology

Conference

Time Warner Center New York, NY

JEGI Sector Insights: Transforming the Marketplace

JEGI HQ

Bronx

Tolman Geffs

Everything Has Changed

3

Web Giving Way to Mobile Apps

4

Time and attention shifting to mobile devices

Web Giving Way to Mobile Apps

49% 80% 87%

51% 20% 13%

2010 2013 2014F

Apps Mobile Web

Global Internet Device Sales (mm)

2000 2004 2008 2012 2016F

PCs Smartphones Tablets

Time Spent on Smartphones/Tablets

Apps ascendant for most key tasks

Source: IDC, Flurry and eMarketer

5

Web Giving Way to Mobile Apps

49% 80% 87%

51% 20% 13%

2010 2013 2014F

Apps Mobile Web

Global Internet Device Sales (mm)

2000 2004 2008 2012 2016F

PCs Smartphones Tablets

Time Spent on Smartphones/Tablets

Apps are walled castles

No links Do not share data Secure (and spam-free)

Source: IDC, Flurry and eMarketer

6

Web Cat Memes

Monty Python Fan Clubs

Web Giving Way to Mobile Apps

Apps Commerce

Everything else that matters

Is the open web – where data is shared – going the way of ham radio?

7

1.3 1.2

0.3 0.2 0.1

Google Play Apple App StoreWindows Phone StoreAmazon AppstoreBlackberry World

Google and Apple own mobile app distribution

Mobile World Dominated By Gatekeepers

Number of Apps Available in Leading App Stores (mm’s)

Source: eMarketer

8

And Google and Facebook – in turn – own mobile ads

Mobile World Dominated By Gatekeepers

2014 US Mobile Ad Revenue Share

37.2%

17.6% 3.6% 3.2% 3.0% 2.7% 2.6% 55%!

Google and Apple own mobile app distribution

We Love A Duopoly!

Source: eMarketer

9

Marketers and publishers can now measure content + ads by individual person across screens

And then link to identity and purchases

Holy Grail: Reaching People Across Screens

Driving wave of M&A and investment

10

Marketers and publishers can now measure content + ads by individual person across screens

And then link to identity and purchases

Holy Grail: Reaching People Across Screens

Driving wave of M&A and speculation

11

Marketers and publishers can now measure content + ads by individual person across screens

And then link to identity and purchases Aided by cross-device user registration, which

Facebook and Google have at massive scale

Holy Grail: Reaching People Across Screens

Another Duopoly!

12

Everyone now works for Google, Apple and Facebook… …your revenue is taxed, your flexibility limited, and they

know a lot about your business… …which they use to improve theirs (at your expense)

Glass Half Empty?

13

Marketers can do much more vs. five years ago Much richer investment opportunity set Especially by bringing cross-screen attribution to TV!

…Or Very Full?

Publishers – Media easier to consume Ad space more valuable

Marketers – Reach target audience, spend more efficient

Marketing Services – Add value with richer analytics (everything looks like search)

Technology Providers – Automate vast chunks of marketing – especially TV

14

Marketers can do much more vs. five years ago Much richer investment opportunity set Especially by bringing cross-screen attribution to TV!

…Or Very Full?

Publishers – Media easier to consume Ad space more valuable

Marketers – Reach target audience, spend more efficient

Marketing Services – Add value with richer analytics (everything looks like search)

Technology Providers – Automate vast chunks of marketing – especially TV

And the $500 billion question: If media finally becomes more efficient, then…

…do marketers spend more because advertising is cheaper with better / measurable ROI …or less because they can reach their audience more efficiently …or about the same?

Bronx

Queens

Amir Akhavan

Machine Intelligence

16

Enterprise Software Over Time

Enterprise Software

Inventory Mgt & Control

Material Requirements

Planning

Enterprise Resource

Planning & CRM

Enterprise App Suite & Cloud

Solutions

Enterprise Apps + Big Data + Machine Intelligence

Big Data Database

Management

Data Mining & Science

Predictive Analytics

Algorithmic Intelligence

Industry Leaders:

1960’s 2015 and Beyond!

17

Evolution of Machine Intelligence

NATURAL LANGUAGE PROCESSING

Machine Intelligence

KEYWORD-BASED SENTIMENT

18

Machine Intelligence Landscape

Source: Shivon Zilis, BloombergBETA

19

So What’s Happening?

Marketing: Smarter CRM

Media: Personalization

HR: Talent Analytics

Legal: Research

Health Care: Watson Analytics

Retail: Conversion

Financial Services: High Frequency Trading

20

Recent Transactions

Software

Media & Marketing

Queens

Brooklyn

Sam Barthelme

Industry Cloud

22

JEGI Industry Cloud Transactions

23

Move to Industry Cloud

Mainframe

Client Server Applications

Cloud

Industry Cloud

Customizing Horizontal Apps is Difficult and Costly Rise of Meaningful Big Data Applications Industry Cloud: Domain Expertise; Efficient Sales and

Marketing

24

49%

Spend

24%

Spend

Industry Focus = Efficient Sales & Mktg Spend

The issue is TAM: Holds back growth and trading multiples

Horizontal SaaS Vertical SaaS

45% Revenue Growth 9.3x Forward Revenue Multiple 5.6x Forward Revenue Multiple

18% Revenue Growth

Sales & Marketing Spend (% Revenue)

Source: CapIQ

25

Industry Cloud Model – Veeva Case Study

Regulatory Clinical Trials Quality and Manufacturing Medical Marketing Sales

Research and Development Commercial

Veeva CRM (force.com)

Veeva Vault

Veeva Network

Source: Veeva Systems Investor Presentation

26

Big Industries, Big Industry Cloud Opportunities

$280

$620 $776 $781

$1,300 $1,330

Events Grocery Agriculture Auto Logistics Education

U.S. Industry Size ($ bn) Source: BEA, FMI, PwC

7 2 27 9 8 Representative Challengers:

Leaders:

4 Acquisitions by Leaders over last 24 months:

Brooklyn

Manhattan

Live Events

Scott Peters

Corporate Events

28

Why are Tradeshows Highly Valued?

Digital can’t replace face to face engagement

High EBITDA margins

Excellent cash flow characteristics

Strong growth and more resilient in down markets

2014 8-13x

2009 5-7x

EBITDA Multiples

29

acquires acquires acquires acquires

Recent Trade Show Transactions

acquires acquires acquires

30

61% 39%

Corp Events & MtgsTradeshows & Conferences

U.S. Meeting & Events Participants

$150 $130

Event ExecutionTravel & Hospitality

U.S. Meeting & Events Spend ($bn)

Market Spend

Corporate event industry is large and highly fragmented Much of the spend has been below the line and managed in-house A shift to external providers is underway

U.S. Meetings & Events Market = $280bn

Source: PWC

31

61% 39%

Corp Events & MtgsTradeshows & Conferences

U.S. Meeting & Events Participants

Market Spend

U.S. Meetings & Events Market = $280bn

Source: PWC

32

Data and Analytics for channel

attribution and ROI

Corporate Events

Mobile Apps

Mobile Advertising

Search Marketing

Email

Online

Content Marketing

Public Relations

Direct Mail

Out of Home

Radio

Corporate Events Optimized

Print

TV

Advertising Budget Other

Tech Enabled

33 Corporate Events

Mobile Apps

Mobile Advertising

Search Marketing

Email

Online

Content Marketing

Direct Mail

Out of Home

Radio

Corporate Events Optimized

Print

TV

Advertising Budget

CMO

CRM

ROI understood and optimized

34

Representative Service Providers Creative and

Strategy

Event Apps

Event Logistics & Audio/Visual

Marketing and Promotions

Full Service Agency

Registration

Enterprise Event Mgmt

Travel and Housing

35

Corporate Events market is a growing and dynamic sector

Market highly fragmented, no clear leader

New technologies enhancing ROI measurement

Scale enhances growth and profitability margins

What’s the Opportunity?

Intelligent consolidation led by PE firms and ultimately sold to strategic buyers

What’s Next?

Manhattan

Time Warner Center

Jeff Becker

Convergence of Capital

37

Later Stage Tech Options are Changing

Long-term investors Competing agendas

Lack of growth capital Shrinking strategic buyer set

USS Growth Equity Recap

Later Stage Tech Co

Constraints

38

Investor Landscape Morphs

Fund Size

Mat

urity

of T

arge

t Com

pany

Traditional Venture Capital

Traditional Private Equity

Growth Equity Recap

39

What Created This?

Broader Understanding of Tech Sectors

Adoption of SaaS/Recurring

Revenue Models

Focus on Generating Cash

Flow Earlier

Lenders Willingness to Adapt

Acquisition / Consolidation Acceptance

40

Impact on Later Stage Tech Companies

CHOICES

LIQUIDITY

MARKET

GROWTH

Strategic Buyers + Growth Equity Recap Investors

For Founders and Long-time Investors

Very Active New Market Creates Leverage

Growth Will Help Drive Valuation

HAPPY COMPANIES AND INVESTORS

January 15, 2015 www.jegi.com

Since 1987

2015 JEGI Media & Technology

Conference

Time Warner Center New York, NY

JEGI Sector Insights: Transforming the Marketplace