October 2012

Strictly Private and Confidential

Selling Complex Stories in Simple Words at High Prices

Intro

Unique Industry Know-How Core Investment Banking Competence

Unmatched Network and Relationships Full Commitment - We Are Entrepreneurs!

100% focused on Internet companies, covering over 25 sub-verticals in this highly complex industry- 15+ years active coverage of leading European

Internet companies and investors Deep understanding of industry dynamics and

thinking of industry leaders Ability to add value beyond banking advice

- Facilitates overall process and minimizes management distraction

The NOAH team has 25+ years of media investment banking experience - Routine execution of M&A and financing

transactions with sizes of several billion euros The team has been working together closely for 7

years (including 6 years at Lehman Brothers) 8 successfully completed NOAH Advisors

transactions underline successful transfer of competencies to the Internet sector

NOAH Advisors is globally very well connected and has direct access to virtually all key players in the industry- Knowledge of and strong relationships with

potential buyers’ key decision makers- Coverage of over 500 companies and 4,000

individuals- Proactively finds and unlocks attractive

investment opportunities for leading investors (e.g. Bigpoint)

Annual NOAH Conference

The NOAH team are entrepreneurs and focused on growing the business and establishing a reputation for excellence

Full commitment to deliver top quality results in short time frames

Highly success-based compensation structures align interests of clients and NOAH Advisors, and demonstrate conviction to deliver top results

NOAH Advisors - Europe’s Leading Internet Corporate Finance Boutique

Marco RodzynekManaging Directorand Founder

YoramWijngaardeDirector

Jan BrandesDirector

Contact Detailsmarco.rodzynek@noah-advisors.comUK Mobile:

+44 77 85 330 330Swiss Mobile:

+ 41 79958 1512

Contact Detailsyoram.wijngaarde@noah-advisors.comUK Mobile: +44 79 17 084 784

Contact Detailsjan.brandes@noah-advisors.comGerman Mobile:

+49 174 2010 984

The NOAH Advisors Core Team

Selected Completed NOAH Transactions

3

April 2011 April 2011

have acquired a majority stake in

for $350m from

Exclusive Advisor to Summit Partners and TA Associates

Advisor to Yatego

Sale of a majority stake in

to

December 2009 April 2009

Advisor to Softonic

Partial sale of

to

Valuing Softonic at €175m

Advisor to Fotolia

$80m partial sale of

to

July 2011

Advisor to EnGrande

Sale of a majority stake in

to

November 2011

Sale of a majority stake in

toQuants Financial Services AG

Exclusive Financial Advisor to grupfoni and its Shareholders

May 2012

150 million growth equity investment from

for a 50% stake alongside Fotolia’s Founders and

Additional $150 million senior debt financingTotal $300 million investment

Financial Advisor to Fotolia and its Shareholders

April 2012

Sale of a 100%-stake in

to

Financial Advisor to Toprural and its Shareholders

The conference will again take place at Old Billingsgate in London The NOAH Party on will take place at the iconic Battersea Power Station For updates, please check: www.noah-conference.com

Introduction to the NOAH Conference Draft NOAH Conference 2012 Program

NOAH 2012 on 6-7 November – Book Your Ticket Now!

The NOAH Conference is an annual Internet event taking place once a year in London, focused on top management from Internet start-ups to global media companies as well as senior investment professionals

NOAH’s goal is to create a marketplace for the European Internet eco-system to discuss key trends, generate business and facilitate investment transactions

Over the past 3 years numerous high-profile speakers presented at NOAH, including over 100 CEOs

The NOAH Conference was founded in 2009 by Marco Rodzynek and is organised by the NOAH Advisors team with sponsorship from some of the world’s leading financial investors

4

Start - End Session Format

Day 1 (6th November)8:50 - 8:55 Welcome Note & Introduction Welcome Speech8:55 - 9:10 The State of European Internet Interview9:10 - 9:20 Overview of Conference Work Shops Presentation9:20 - 9:50 Champion League Company Presentation9:50 - 10:20 Disruption: Music Keynote

10:20 - 10:30 How to Structure Sales Successfully Keynote10:30 - 11:00 How to Win Customers Keynote & Panel11:00 - 11:15 Angel Investing Interview11:15 - 11:55 Rising Stars Company Presentation11:55 - 12:30 Who Will Win the Mobile Industry War Keynote & Panel12:30 - 13:45 Lunch13:45 - 14:15 Early Game Changers Company Presentation14:15 - 14:30 The eBay Turnaround Story Keynote & Interview14:30 - 15:00 Israel Panel - Part I: Innovation Keynote & Panel15:00 - 15:30 Champion League Founder & CEO15:30 - 16:05 Internet Investing Panel16:05 - 16:40 Internet in Russia Panel16:40 - 17:00 Champion League Company Presentation17:00 - 17:10 Keynote: Unlocking the Long Tail of Knowledge Keynote17:10 - 17:45 How to Hire and Scale an Organisation Keynote & Panel17:45 - 18:15 Rising Stars Company Presentation18:15 - 19:15 Bowl Food and Drinks21:30 - 1:30 NOAH Party at the Batt ersea Power Station

Day 2 (7th November)9:00 - 9:10 Markafoni Transformation Keynote & Interview9:10 - 9:40 Champion League Company Presentation9:40 - 10:00 Disruption: Gaming Keynote & Interview

10:00 - 10:30 Early Game Changers Company Presentation10:30 10:40 Keynote: Innovation in TV - Media for Revenue/Equity Deals Keynote10:40 10:50 Company Presentation: Viewster Company Presentation10:50 - 11:15 Panel Discussion: The Future of Free TV Panel11:15 - 11:55 Rising Stars Company Presentation11:55 - 12:30 How to do Online Payment Keynote & Panel12:30 - 14:00 Lunch12:30 - 14:00 ProSiebenSat.1: SevenVentures Pitch Day Jury Member14:00 - 14:15 How to Build a Big Business with M&A Keynote14:15 - 14:30 Axel Springer's Internet Strategy Presentation14:30 - 15:05 Leading Women and Their Start-Ups Panel15:05 - 15:20 Israel Panel - Part II: Finding EBITDA in the Holy Land Panel15:20 - 15:40 Disruption: Navigation Presentation15:40 - 16:20 Rising Stars Company Presentation16:20 - 16:45 How to Analyse Traffi c Keynote16:45 - 17:25 Early Game Changers Company Presentation17:25 - 18:55 Networking Drinks & Canapés

5

Finally Here!

It is Really Hot Here

Guys, Let’s Go!

Reaching to New Limits … We Are Proud to Be Here

Where Does the Exit Market Stand European exit markets have been relatively quiet from an IPO and Trade Sale perspective

Modest exit activity levels with relative unspectacular deals, with the exception of Skype

Lack of large buyout and take privates. Internet debt market in its infancy

Some recent expensive European Internet IPOs like Ocado led to more investor caution. Perform Group is a pleasant exception. They are like the European version of the Linkedin IPO (expensive but well performing)

Permira and Axa Private Equity consolidated European online flight market with OdigeO, the combination of Opodo, Go Voyages and eDreams

KKR acquired 50% of Fotolia in a leverage recap valuing the company above $500 million

Significant interest by buyout groups to acquire sizeable Internet companies, among others:

‑ Silver Lake, Providence, Apax, Advent, KKR, Permira, GA, TA, Summit, TPG, HF, Bridgepoint

M&A process are run proprietary with a very targeted buyers group. Long processes are set to fail

NOAH Advisors estimates that there are over 50 European Internet Companies worth over $500m

US private company valuations for “hyped” stories are off the chart, but not always deliver in the public market, e.g. Demand Media, Facebook, Zynga, Pandora, etc.

6

How to Not Get Lost in an Exit Process

7

Europe Matters!

8

A significant number of companies are valued at over €200 million

Note: selected examples.

Company Segment

Innovative payment platform

Largest pure-play fashion Retailer

Enterprise software

Social networking for people you don’t know

Betting

Free to play online gaming

Toolbars

Freemium anti-virus

Payment instalments

European Internet Pioneers & Global Leaders

9

Company Segment

Remote access

Open-source database

FX

Vertical ad network (soccer)

VoIP

Legal music service

Global hotel comparison leader

Private sales

Personal loans

Some business models were invented or most successfully executed in Europe

Europe Is Unique

Russia and Eastern European market larger than Western Europe

10 Largest Western European countries: - 50m+: Germany (81.5m), France (65.3m),

U.K. (62.7m), Italy (61.0m)- 20-50m: Spain (46.8m), Ukraine (45.1m),

Poland (38.4m), Romania (21.9m), - 10-20m: Netherlands (16.8m), Portugal

(10.8m) 10 Largest cities, many local markets:

- 3m+: London (7.8m), Berlin (3.5m), Madrid (3.3m)

- 1m+: Rome (2.8m), Paris (2.2m), Hamburg (1.8m), Warsaw (1.8m), Budapest (1.7m), Vienna (1.7m), Bucharest (1.6m)

10

Countries & Poupulation Investors

Less VC money available and harder to get funding

Serial entrepreneurs and angel investors dominate the scene as in the US

Cultural differences, e.g. not anyone wants to get rich, different work ethics / intensity levels

Lets Compare the US and European Internet Success Stories

NOAH Study – Companies Included

12

US Market Cap: $70bn European Market Cap: $30bn

Nov-09 Nov-11

Feb-12 Mar-12 Jan-11

May-12 Nov-11 Jun-11

May-11 May-09

Jun-11 Feb-10 May-10

Feb-12 Jul-11 Dec-11

Oct-01 Feb-12 Oct-10

Dec-10 Aug-06

Nov-10 Jul-07

Jul-10 Apr-11 Mar-06

Nov-05 Mar-05 Dec-06

May-11 Dec-09 May-08

The market cap of post-2000 Internet bubble IPOs is ~2.3x larger in the US than in Europe

Note: Market caps as of 12-Oct-12.

= EBITDA NegativeIPO Date

Company Size and Valuation Growth

13

US Europe

4379.7

1897.0

US Europe

8%

36%

Average Market Cap ($bn) Average Share Price Performance since IPO

Sources: Bloomberg, FactSet, 4-traders, NOAH Advisors. We excluded Asos (up 11,175% since IPO)

US company universe valued 2.3x higher than European one However, EU companies performed 4.5x better since IPO than the US group European Internet IPOs are cheaper than US Internet IPOs

Average market cap of across sampled firms Average share price increase since IPO of sampled firms

US Europe

17.1%

1.9%

VC Funding is Less Developed in Europe

14

Average VC Funding Raised ($m) VC Funding as % of Market Cap

US Europe

367

71

Average amount of venture capital raised across sampled firms

Average of venture capital raised as a percentage of currentmarket capitalisation of sampled firms

European public companies have relied less on VC money than US ones VC investment per company and in % of current market cap significantly

lower in Europe compared to the US However, there are also fewer winners in Europe (less exits)

Sources: Bloomberg, FactSet, 4-traders, NOAH Advisors.Excluded Tradedoubler and Ocado for Europe.

A Look at the Largest VC Backed Companies

15

VC Capital Raised ($bn) Share Price Performance since IPO

Over-promised and under-delivered? They jumped several hurdles in our valuation chain

2,240

1,140

860

510

471

(48.6%)

(73.6%)

(75.7%)

(0.5%)

(63.1%)

Source: Bloomberg, FactSet, 4-traders & NOAH Advisors.

Company Last Round Raised Selected Investors

Feb-09 $65m

Jan-12 $63m

Apr-12 $62m

Mar-11 $59m

Feb-12 $58m

Jun-09 $53m

Jun-12 $47m

May-10 $23m

Company Last Round Raised Selected Investors

Mar-11 $218m

June-11 $188m

Dec-11 $166m

Feb-12 $145m

Jul-07 $130m

Apr-12 $129m

Sep-07 $117m

May-11 $114m

Feb-12 ~$100m

High Profile Venture Backed Companies

16

European VC is waking up or rather has been awakened by many US investors

Sources: Crunchbase, NOAH Advisors.

So What is a High Valuation or a Great Deal?

Not Every Deal is Created Equal

Loss of Control / New Investor Rights

Valuation Drivers

Governance rights- Board seats / Information rights- Veto rights

Management commitment to stay Path to control for new investor?

- Call option- First right of refusal

Performance-based earn-outs/ratchets Exit rights

- Liquidation preference- IPO right- Put option- Tag and drag rights- Minimum valuation criteria

Significant premium for (path to) control Governance and exit rights (Perceived) competition in process Operational out-performance during the

process Due diligence findings Macro-economic and M&A environment Quality of motivation of management Availability of debt leverage Funding currency and hedging cost Negotiation skills (shareholders, NOAH

and lawyers)

Process objectives:- Fast process with limited disruptions / leaks- Premium valuation- Minority investment with limited rights (no

liquidation preference, no path to control, customary governance rights, exit rights TBD)

Key success factors in creating:- Growth profile and supportive KPIs- Equity story: simple terms with 3-5 key points- Access to, understanding of and relationship

with relevant contacts at key potential investors. Trust matters the most!

Key success factors for getting investors “to the finish line”:- Management focus and engagement- Seamless process execution- No negative due diligence findings- Strong performance during deal phase

Valuation is only one side of the medal

18

Valuation Drivers in the Context of a Company’s Development Stage: How NOAH sees the World

Increasing valuations – However Multiples Get More Reasonable (in Theory)

19

Management Technology Users / KPIs Revenues EBITDA Market Leadership

Decreasing Execution Risk and Benefit of the Doubt (Less to Hope for)

(GROWTH * MARGIN) Predictability = Valuation Multiple

Current Valuation Levels: Internet Sector Breakdown

20

New Economy is valued at Old Economy Prices adjusted for growth

Source: UBS, FactSet (12-Sep-12)

Current Valuation Levels: All Over the Place

21

Amazon enjoys a premium because of predictability

(EURm except share price) Currency Share Price Market Enterprise EV/Revenues EV/EBITDA EV/EBIT P/E

Company Country (Share Price) 12-Oct-12 Cap Value 2011 2012E 2013E 2011 2012E 2013E 2011 2012E 2013E 2011 2012E 2013E

Online large caps

Amazon.com US USD 242.36 90,144 83,820 2.1x 1.6x 1.3x 52.4x 38.1x 24.3x NM NM 65.5x NM NM NM

Apple US USD 629.71 485,674 399,787 4.0x 2.9x 2.4x 11.8x 7.9x 6.6x 12.4x 8.4x 7.1x 19.7x 13.4x 11.3x

eBay US USD 47.85 50,734 47,119 4.9x 4.1x 3.5x 14.9x 12.4x 10.8x 17.7x 15.4x 13.3x 19.1x 24.2x 21.2x

Facebook US USD 19.52 34,404 27,923 9.1x 6.9x 5.4x N/A 12.8x 9.8x N/A 17.4x 13.0x N/A NM 38.0x

Google US USD 744.75 200,390 170,734 7.1x 4.9x 3.9x 12.9x 10.7x 9.0x 14.6x 12.5x 10.6x 25.0x 20.5x 17.3x

Microsoft US USD 29.20 202,550 151,640 N/A 2.4x 2.2x N/A 5.7x 5.3x N/A 6.3x 5.8x N/A 11.8x 9.5x

Yahoo! US USD 15.88 15,478 10,215 2.8x 2.8x 2.7x 8.6x 8.5x 7.5x 15.5x 16.1x 14.0x 17.9x 16.2x 14.3x

Rakuten AsiaPac JPY - 10,424 11,901 3.0x 2.6x 2.3x 12.9x 11.0x 9.2x N/A 14.6x 11.5x NM 20.8x 17.4x

Tencent AsiaPac HKD 258.60 40,933 38,687 10.4x 6.9x 5.4x 21.9x 16.3x 12.9x 25.5x 18.7x 14.9x 30.7x 24.5x 19.2x

Yahoo! Japan AsiaPac JPY - 16,639 12,750 N/A 3.8x 3.6x N/A 6.4x 6.1x N/A 6.9x 6.4x N/A 14.9x 14.0x

Overall Mean 5.4x 3.9x 3.3x 19.3x 13.0x 10.1x 17.2x 12.9x 16.2x 22.5x 18.3x 18.0x

U.S. Mean 5.0x 3.7x 3.1x 20.1x 13.7x 10.5x 15.1x 12.7x 18.4x 20.4x 17.2x 18.6x

Asia-Pacific Mean 6.7x 4.4x 3.8x 17.4x 11.2x 9.4x 25.5x 13.4x 10.9x 30.7x 20.0x 16.9x

Sources: NOAH Advisors, 4-Traders (12-Oct-12)

Current Valuation Levels: Regional Difference

22Source: UBS, FactSet (12-Sep-12)

Who are the Buyers?

Not only Google

Internet Large Cap

Private Equity

Angels / Family Offices

MarylandKlaus Hommels

Armira

Traditional TMT & Retail

Hedge FundsVC and Growth

Funds

Several groups to think about

Coverage of over 10,000 industry leaders: 500 target companies and 300 investors

24

Selected US Buyers – A Large Universe

25

Financial Investors Present at the NOAH Conference 2011

26

Fund Attendees Key Contact

11Harry Nelis (hnelis@accel.com)Sonali de Rycker (sderycker@accel.com)Adam Valkin (avalkin@accel.com)

9Dominique Vidal (dom@indexventures.com)Ben Holmes (benh@indexventures.com)Jan Hammer (jan@indexventures.com)

3Hans-Jürgen Schmitz (hans-juergen.schmitz@mangrove-vc.com)Eugene Mizin (eugene.mizin@mangrove-vc.com)Guillaume Durao (guillaume.durao@mangrove-vc.com)

3Pawel Chudzinski (pawel@pointninecap.com) Lukasz Gadowski (lukasz@teameurope.net)Kolja Hebenstreit (kolja@teameurope.net)

2Roberto Bonanzinga (rbonanzinga@balderton.com)Dharmash Mistry (dmistry@balderton.com )

2 Marcel Rafart (marcel.rafart@nautacapital.com)Javier Rubio (javier.rubio@nautacapital.com)

2 Pär-Jörgen Pärson (pjp@northzone.com) Hans Otterling (hans@northzone.com)

2 Andrin Bachmann (andrin.bachmann@pitoncap.com)Greg Lockwood (greg.lockwood@pitoncap.com)

2 Alexander Ribbink (alexander@primeventures.com)Rogier Taphoorn (rogier@primeventures.com)

2 Hubert Deitmers (hubert.deitmers@endeit.com)Martijn Hamann (martijn.hamann@endeit.com)

2 Alex Gonthier (gonthier@@wellington-partners.com)Christian Thaler-Wolski (thaler@wellington-partners.com)

1 Emanuele Levi (emanuele.levi@360capitalpartners.com)

1 Mike Chalfen (mike.chalfen@adventventures.com)

1 Mattias Ljungman (mattias@atomicoinvestments.com)

1 Michael Eisenberg (michael@benchmark.com)

1 Alon Lifshitz (alon@blumbergcapital.com)

1 Ian Noel (iannoel@bonsaigrupo.com)

1 Nic Brisbourne (nic@dfjesprit.com)

1 Ben Tompkins (bt@edenventures.co.uk)

1 Bernard Vogel (bv@endeavourvision.com)

1 Davor Hebel (davor@fgpe.com)

1 Stephen Lowery (stephen.lowery@frogcapital.com)

1 Torsten Kreindl (t.kreindl@grazia.com )

1 Laurel Bowden (lbowden@greylock.com)

1 Martin Weber (martin.weber@holtzbrinck.net)

1 Johan Englund (johan.englund@industrifonden.se)

1 Baris Aksoy (baris.aksoy@intel.com)

1 Tomasz Czechowicz (czechowicz@mci.eu)

1 Thomas Preuss (preuss@neuhauspartners.com)

1 Phillippe Collombel (pcollombel@partechventure.com)

1 Tony Askew (tony.askew@reedelsevier.com )

1 Olivier Sichel (osichel@sofinnova.fr)

1 Mauro Pretolani (mauro.pretolani@tlcom.co.uk)

Fund Attendees Key Contact

9Stefan Götz (sgoetz@hf.com)Zita Saurel (zita@hf.com)Blake Kleinman (bkleinman@hf.com)

4

Philipp Freise

(freip@kkr.com)Lucian Schoenefelder

(lucian.schoenefelder@kkr.com)Vania Schlogel

(vania.schlogel@kkr.com)

4Dominik Stein (dominik.stein@eqt.de )Christian Schuette (christian.schuette@eqt.de)Anil Hansjee (anil@hansjee.net)

3Kai Romberg (kai.romberg@hgcapital.com)Dan Groen (dan.groen@hgcapital.com)Sascha Kaumann(sascha.kaumann@hgcapital.com)

3

Karim Tabet (karim.tabet@provequity.co.uk) Bruno Mourgue d'A. (bruno.mourguedAlgue@provequity.co.uk)Andrew Tisdale(andrew.tisdale@provequity.co.uk)

3Karl Peterson (kpeterson@tpg.com)Anand Tejani (atejani@tpg.com)Jean Baptiste Brian (jbbrian@tpg.com)

2 Tripp Lane (tripp.lane@apax.com)Frank Ehmer (frank.ehmer@apax.de)

2Andrea Valeri (valeri@blackstone.com)Lance Toler (lance.toler@blackstone.com)

2 Stefan Franssen (stefan.franssen@gmtpartners.com)Natalie Tydeman (natalie.tydeman@gmtpartners.com)

2 Hinrich Stahl (hs@maryland-gmbh.de)Helge Luetzen (hl@maryland-gmbh.de)

2Michael Korzinstone(michael.korzinstone@silverlake.com)John Flynn (john.flynn@silverlake.com)

1 Jan-Olivier Fillols (jan-olivier.fillols@3i.com)

1 Jens Hagen (jhagen@uk.adventinternational.com)

1 Jörg Mohaupt (jmohaupt@accind.com)

1 Michael Black (michael.black@bridgepoint.eu)

1 Jason Khaksar (jason.khaksar@carlyle.com)

1 Andrew Young (andrew.young@permira.com)

Fund Attendees Key Contact

7John Meeks (jmeeks@ta.com)Ajit Nedungadi (ajit@ta.com)Morgan Seigler (mseigler@ta.com)

5Scott Collins (scollins@summitpartners.com)Christian Strain (cstrain@summitpartners.com)Vincent Lambert (vlambert@summitpartners.com)

5

Konrad Stoebe (konrad.stoebe@warburgpincus.com)Steven Klooster (steven.klooster@warburgpincus.com)Johannes Korp(johannes.korp@warburgpincus.com)

3Frank Seehaus (fs@actoncapital.de)Jan-Gisbert Schultze (jgs@actoncapital.de)Benedikt Sudbrock (bs@actoncapital.de)

3Fabio Giuseppetti (giuseppetti@palamon.com)Daniel Mytnik (mytnik@palamon.com)Ricardo Caupers (caupers@palamon.com)

2 Marco Brockhaus (brockhaus@brockhaus-pe.com)Jan Daniel Neumann (neumann@brockhaus-pe.com)

2 Chris Caulkin (ccaulkin@generalatlantic.com)David Lisewski (dlisewski@generalatlantic.com)

2 Sarah Pinto (spinto@greathillpartners.com)Peter Garran (pgarran@greathillpartners.com)

2 Jim Quagliaroli (jim@spectrumequity.com)Jeff Haywood (jeff@spectrumequity.com)

2 Daniel O’Keefe (dokeefe@tcv.com )Woody Marshall (wmarshall@tcv.com)

2 Stephen Byrne (stephen.byrne@vitruvianpartners.com)Jussi Wuoristo (jussi.wuoristo@vitruvianpartners.com)

Expansion Capital 1 Fabian Wasmus (fabian.wasmus@eqt.de)

Mercury1 Sebastien Briens

(sebastien.briens@hgcapital.com)

1 Harley Miller (HMiller@insightpartners.com)

1 Christoph Haschka (christoph.haschka@macquarie.com)

1 Mark Joseph (mark.joseph@oakleycapital.com)

1 Pueo Keffer (pkeffer@redpoint.com)

1 Richard Yen (ryen@saban.com)

1 Morgan Callagy (callagym@vss.com)

Growth Capital (€20-250m)Venture Capital (€5-20m) Private Equity (€250-1,000+m)

(€ million) Hol

tzbr

inck

Wel

lingt

on

Act

on

Ende

it

Inte

l Cap

ital

Kenn

et

Fide

lity

Inde

x

Peac

ock

Acc

el

Bess

emer

Bald

erto

n

Sequ

oia

R Ca

pita

l

Silv

erla

ke G

row

th

Carl

yle

Gro

wth

Batt

ery

Pala

mon

Oak

Inve

stco

rp

GM

T

Vitr

uvia

n

Insi

ght

Cyrt

e

Spec

trum

Gre

at H

ill

Gen

eral

Atla

ntic

War

burg

Pin

cus

TCV

Sum

mit

Fran

cisc

o Pa

rtne

rs

Vero

nis

HG

Cap

ital

Expo

nent

TA Silv

erla

ke

Carl

yle

Perm

ira

3i CVC

Apa

x

Prov

iden

ce

TPG

Blac

ksto

ne

Bain

Adv

ent

Cinv

en

KKR

H&

F

EU Office ✔ ✔ ✔ ✔ ✔ ✔ ✔ ✔ ✔ ✔ ✔ ✔ ✔ ✔ ✔ ✔ ✔ ✔ ✔ ✔ ✔ ✔ ✔ ✔ ✔ ✔ ✔ ✔ ✔ ✔ ✔ ✔ ✔ ✔ ✔ ✔ ✔ ✔ ✔ ✔ ✔ ✔ ✔

US Office ✔ ✔ ✔ ✔ ✔ ✔ ✔ ✔ ✔ ✔ ✔ ✔ ✔ ✔ ✔ ✔ ✔ ✔ ✔ ✔ ✔ ✔ ✔ ✔ ✔ ✔ ✔ ✔ ✔ ✔ ✔ ✔ ✔Internet Deals 1 1 1 1 1 1 1 1 2 1 1 1 1 2 2 1 2 2 2 2 2 2 1 2 2 2 1 1 1 1 2 2 2 2 1 1 2 2 1 3 2 1 3 3 3 2 3 3 1

2 5 5 5 2 5 10 5 5 5 10 10 5 15 20 20 10 10 15 25 20 30 20 10

30 40

20 25

40

25

50

30 40

60 50

75

100

100

50

100

100

100

100

100

75

120 15

0

100

7515 25 30 25 25 20 25

60

25

70

35

50

70

50

80

60

75 70

120

100

70 70 70

100

100

150

200

200

200

150

200

150

200

200

200

300

300

300

250

500

400

400

300

500

500

600

300

750

500

0

100

200

300

400

500

600

700

800

0

100

200

300

400

500

600

700

800

The Universe of Financial European Internet Investors

Note: Number of previous European Internet deals: 1 - many, 2 - a few, 3 - new to the segment.

Equity Investment Size

Control Investments Only

Sweet Spot

Venture Capital Growth Funds Buyout Funds

Equity investment/check size, geography, minority/majority, growth profile are key ways to differentiate them

27

How to Sell?

101 of Internet M&A

29

The Basics

If you want to sell, don’t be for sale

Don’t be greedy A good day today is better than

a great deal tomorrow(time value of money and opportunity costs)

Do a deal when you can, not when you have to

Work with a professional banker Always work with several

buyers not one. Not the loudest is usually the best buyer

Know about 3 prices: - the price at which you sell- the price of the best buyer - the price of the cover bidder Use this dynamic wisely

Be honest, simple and analytical

The Valuation Drivers

Valuation is the sum of all future cash flows after tax discounted by the expected rate of return (usually higher than risk free interest rates, around 10%)

Market Size Market share Predictability of success Synergies for the buyer Comparable company and

transaction analyses A nature of a deal:

must have, nice to have, could have, shouldn’t have

Perceived management quality Luck. One dumb deal does not

mean it gets repeated. Focus on your story not of others’ luck

Forget the public market

The Tough Lessons Learnt

M&A is hard work You have to be 100% prepared

before you start Dictate a timetable and bring all

parties on the same schedule NEVER deliver below your

projections during a process Don’t change your mind. No one

likes it There are many buyers who all

want to hear a story tailored to them. Know your value to parties

Always give parties an understanding that they are not alone but not too many

If they sense you HAVE to do a deal, they won’t give you a deal

Motivate, it is a love story Be patient and don’t rush

Sale Process Overview

Kick-off in May Target and NOAH to agree on potential

buyers list‒ Focus on strategic buyers ‒ Manage financial parties

simultaneously NOAH will approach potential buyers

in a low profile manner Prepare for next phase

Select parties to round 1 1 week management presentations

(max 3 per day, 3-4 hours each)‒ Tight and fast process with c. 10

management presentations with only highly qualified investors / buyers

3 weeks for indicative bids

Select 3-5 parties to round 2 8 weeks open data room Send KPI business plan out Expert sessions 2-4 weeks final negotiations Term sheet: bring all parties on one

term sheet post round 1

Creation of “equity story” and materials:‒ 1-3 page teaser‒ 50 page management

presentation‒ KPI business plan/model

Introduction to investors Regular updates to the board

Day-to-day process management Rehearse presentation and Q&A Assist Target with preparation of

dataroom Logistics Regular updates to the board

Co-ordination of lawyers, accountants and Target shareholders

Negotiations Regular updates to the board

NO

AH’s

Role

Due Diligence Management Presentations Approach Potential Buyers

NOAH Advisors will take the lead in 3-phase process focused on strategic buyers, expected to last 4-5 months

Key

Step

s

1 2 3

30

Indicative Timetable

31

Month 1 Month 2 Month 3 Month 4 Month 5

Lead:Preparation

EL signing and Project kick-off C, N

Share project data & information C, N

Prepare management presentation N

Prepare budget & mid-term financial model N

Drafting session C, N

Send 1 page teaser to selected parties N

Solicit response, select candidates for phase I N

Approach potential buyers with NDA and process letter N

Phase I: Management Presentation (c. 8 - 12 parties)

Management presentations rehearsals C, N

Send final management presentation incl. projections C, N

Management presentations C, N

Dataroom index N

Prepare master KPI file (commercial data) C, N

Prepare dataroom (financial, legal, tax, etc.) C, N, L, Acc

Indicative bids due (incl. term sheets) and select parties N, C

Negotiate term sheets and select parties for Phase II N, C

Phase II: Due Diligence Phase (select 3 - 5 parties)

Dataroom open N

Due dil igence and Q&A C, N, L, Acc

Draft SPA and provide to party for final Exclusivity Phase C, L, N

Final binding offers due, & negotiation C, N, L

Exclusivity Phase

Legal documentation drafting L

Confirmatory due dil igence and remaining Q&A C, N, L

Signing, closing, funding C, N, L

Responsibilities: Client (C), NOAH Advisors (N), Legal (L), Accountant (Acc) = Process = NOAH Deliverable = Key milestone

Investor Materials

1-2 page company overview (teaser) – can be based on public info if you want your advisor to put you on the radar of buyers without giving the perception that your company is for sale

30 page crisp document

Team overview and history

Market opportunity and competition

Product overview and business model

Growth strategy and zoom in on key areas, e.g. marketing or sales force

Technology and organizational overview

KPIs and financials (in line with the financial model)

32

Considerations for Public Profile Creation

Don't shoot all your powder in round one. It is a marathon not a sprint

Time release of news and events well in harmony with corporate objectives: fund raisings etc.

Use Coca Cola / Pepsi play off strategy: the one is in, so the other will be on board too. Works for journalists, hiring, M&A etc.

Formulate early KPIs which you can consistently communicate to the press

Indentify early the dealers and wheelers in your industry and segment and build targeted relationship with them: journalists, corporate dev people, angels, funds, headhunters competitors, bloggers, bankers, etc

Hire above your class and talk about it

Pick the right investors and partners for momentum

Don’t focus on details but on big steps. Never wait for the right big move. Do it now!

No news is good news and don’t overpromise

Track your profile consistently

Don't forget the substance. Public profile is great but long term corporate cash flows matter

33

Get on the radar of key buyers without being for sale