Q3 2015 STRICTLY PRIVATE AND CONFIDENTIAL

HealthTech HeartbeatQ3 2015 Market Review

Q3 2015 STRICTLY PRIVATE AND CONFIDENTIAL

2QUARTERLY TECH REPORT – Q3: HEALTHTECH

About Results International

A MARKET-LEADING CORPORATE FINANCE ADVISORY FIRM… …WITH GLOBAL REACH

• 40 person team; 250+ completed transactions

• Broad global network

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• Senior level focus on every transaction

• Founded in 1991

• Entrepreneurial and owner-managed

DEEP DOMAIN EXPERTISE IN THREE INTER-RELATED SECTORS… …AND BROAD INDUSTRY NETWORKS

Marketing

HealthcareTechnology

3

80

90

100

110

120

130

140

150

Healthcare IT - Europe Healthcare IT - US Biopharma IT Generalists NASDAQ Comp FTSE 100

QUARTERLY TECH REPORT – Q3: HEALTHTECH

Results International Global HealthTech Indices

Sep-15Oct-14 Nov-14 Dec-14 Jan-15 Feb-15 Mar-15 Apr-15 May-15 Jun-15 Jul-15 Aug-15

Note: Based on share prices as at 30 September 2015Note: Indices weighted by market capitalisationNote: Healthcare IT – US excludes McKesson because the majority of its revenue is generated from pharmaceutical distributionNote: (1) Excludes GeneralistsSources: Capital IQ and Results analysis

LAST

12

MON

TH S

HARE

PRI

CE P

ERFO

RMAN

CE

Q3 2015 PERFORMANCEHealthcare IT - Europe (0.8%)

Healthcare IT - US (10.5%)Biopharma IT (19.1%)Generalists (7.8%)HealthTech(1) (10.9%)

(1.3%)

29.8%

2.8%

(6.4%)

(1.2%)

(8.5%)

4

(60%)

(40%)

(20%)

-

20%

40%

60%

(5.9%) (4.9%)

13.9%6.2% 5.7% 3.2%

(17.7%) (13.2%)(5.1%) (9.4%)

16.4%

(9.1%)

(24.7%) (25.3%)

47.9%

(28.3%)(21.1%) (18.2%)

(48.4%)

(21.8%)(16.5%)

(22.5%)

(6.1%)

QUARTERLY TECH REPORT – Q3: HEALTHTECH

HealthTech: Share Price Performance

Note: Share price performance as at 30 September 2015Note: *Last quarter & last 12 months reference dates adjusted to first trading day post IPO for Teladoc (01-Jul-15); and ‘Last 12 Months’ Evolent Health (05-Jun-15) and Inovalon Holdings (12-Feb-15) Sources: Capital IQ and Results analysis

LAST

12

MON

TH S

HARE

PRI

CE

PERF

ORM

ANCE

Q3 2

015

**

(100%)

(50%)

-

50%

100%

150%

200%

250%

55.2% 44.3% 41.2%24.2% 15.5%

31.7%

(5.0%)

0.7% 11.1%

(7.6%)

1.3%

(3.2%) (9.4%) (22.9%)

222.7%

(9.2%)(26.7%) (15.4%)

(67.5%)

(21.8%) (16.9%) (4.9%)

36.8%

HEALTHCARE IT - EUROPE HEALTHCARE IT - US BIOPHARMA IT

*

5QUARTERLY TECH REPORT – Q3: HEALTHTECH

HealthTech: Selected Stocks – Performance Since IPO

COMPANY IPO DATE DESCRIPTION RAISE

D ($M)INDICATIVE PRICE

RANGE ($)IPO LISTING

PRICE ($)INCREASE VS. RANGE

DAY 1 INCREASE

CURRENT INCREASE(1)

CURRENT EV ($M)

EV / REVENUE

2015EEV / EBITDA

2015E

NYSEJun-15 Video telemedicine platform

for medical consultations 156.8 15.00-17.00 19.00 18.8% 50% 17.3% 887(2) 11.9x n.m.(3)

NYSEJun-15 Healthcare delivery and

payments software 195.5 14.00-16.00 17.00 13.3% 10.9% (6.1%) 1,017 6.4x n.m.(4)

NasdaqGSFeb-15 Cloud-based healthcare data

analytics software 600.0 24.00-26.00 27.00 8.0% 0.0% (22.9%) 2,710 6.2x 17.0x

NYSEApr-14 Healthcare information

technology and services 1,300.0 18.00-21.00 20.00 2.5% 15.0% 45.5% 13,644 4.7x 15.1x

NYSEMar-14 Healthcare enterprise

management software 177.6 13.00-15.00 16.00 14.3% 148.8% (73.8%) 301 4.0x n.m.(5)

LSEDec-13

Software, hardware and services for the healthcare and energy sectors

199.7 n.a. 2.93 n.a. 20.1% 65.8% 332 3.3x 13.6x

NYSEOct-13 Cloud-based CRM software

for the biopharma industry 260.9 16.00-18.00 20.00 17.6% 85.8% 17.1% 3,136 8.0x 28.7x

Note: Calendarised to December year end; $ millions, except share price dataNote: (1) Current increase from IPO price; Market data as of 30 September 2015Note: (2) Current EV adjusted to reflect additional cash from IPO not accounted for in most recent Balance Sheet Note: (3) Teladoc projecting negative EBITDA for CY2015Note: (4) Evolent Health projecting negative EBITDA for CY2015Note: (5) Castlight projecting negative EBITDA for CY2015 Source: Capital IQ

6

Generalists Healthcare IT - Europe

Healthcare IT - US Biopharma IT0.0%

5.0%

10.0%

15.0%

20.0%

25.0%

30.0% 27.9%

23.2%

18.2%

23.2%

Generalists Healthcare IT - Europe

Healthcare IT - US Biopharma IT0.0 x

5.0 x

10.0 x

15.0 x

20.0 x

25.0 x

30.0 x

11.0 x13.5 x 14.3 x

25.2 x

Generalists Healthcare IT - Europe

Healthcare IT - US Biopharma IT0.0 x

1.0 x

2.0 x

3.0 x

4.0 x

5.0 x

6.0 x

7.0 x

3.7 x3.3 x

4.0 x

5.9 x

Generalists Healthcare IT - Europe

Healthcare IT - US Biopharma IT0.0%

5.0%

10.0%

15.0%

20.0%

25.0%

4.5%6.8%

13.7%

19.5%

QUARTERLY TECH REPORT – Q3: HEALTHTECH

HealthTech: Valuation Benchmarks

Note: EV = Enterprise Value; Financials calendarised to December year endNote: Median values reported; excludes negative multiples Note: See Selected Publicly Traded Companies (Slide 9) for details of companies included in each categoryNote: McKesson excluded from above analysis because majority of revenue is generated from pharmaceutical distributionSource: Capital IQ

REVENUE GROWTH (2015-16E) EV / REVENUE 2015E

EBITDA MARGIN 2015E EV / EBITDA 2015E

7

Q1 2012

Q2 2012

Q3 2012

Q4 2012

Q1 2013

Q2 2013

Q3 2013

Q4 2013

Q1 2014

Q2 2014

Q3 2014

Q4 2014

Q1 2015

Q2 2015

Q3 2015

0

10

20

30

40

50

60

70

80

0

2,000

4,000

6,000

8,000

10,000

12,000

14,000

16,000

18,000

2117

20

3229

18

28 27 2832

44

61

5449

70

43

5

11

7

27 5

6

2

812

5

5

Healthcare IT Biopharma ITHealthcare IT Total Disclosed Deal Value Biopharma IT Total Disclosed Deal Value

NUM

BER

OF D

EALS

TOTA

L DIS

CLOS

ED D

EAL

VALU

E ($

M)

QUARTERLY TECH REPORT – Q3: HEALTHTECH

HealthTech: Global M&A Activity Q1 2012 – Q3 2015

Sources: Press releases, Capital IQ, Mergermarket, 451 Research and Results analysis

8QUARTERLY TECH REPORT – Q3: HEALTHTECH

HealthTech: Selected Deals in Q3 2015

DATE BUYER TARGET EV ($M) EV/REVENUE EV/EBITDA COMPANY DESCRIPTION TARGETLOCATION

Sep-15 120.0 - - SaaS-based biopharma marketing compliance software

Sep-15 - - - Mobile clinical assessment and patient flow management systems

Sep-15 - - - Mobile workflow management software for the healthcare, government and industrial sectors

Sep-15 - - - Tech-enabled services and software for the healthcare industry

Sep-15 - - - Cloud-based financial performance analytics for healthcare

Aug-15 11.7 2.0x - Clinical patient flow and compliance education software

Aug-15 140.0 3.0x - Data-driven advisory services and BI systems for the life sciences industry

Aug-15 150.0 3.8x - Mobile medical education platform for physicians

Aug-15 65.0 - - Financial management software for hospitals

Aug-15 903.9 4.0x 20.7x Medical image management systems

Aug-15 - - - Genomic laboratory information management software

Aug-15 400.0 - - Saas-based performance management and improvement software for healthcare

Jul-15 - - - Laboratory information system middleware

Jul-15 - - - Healthcare professional and organisation database

Jul-15 - - - Healthcare professional and organisation database

Jul-15 4.7 - - Primary and secondary care administration and compliance software

Jul-15 910.0 - - Cloud-based healthcare data analytics platform and engagement solutions

Jul-15 - - - Clinical decision support software

Note: Financials relate to the companies’ full fiscal year before the transaction took placeNote: Enterprise Value (EV) = transaction value scaled to 100% shareholding plus net debt (includes minority interest)Sources: Press releases, Capital IQ, Mergermarket, 451 Research and Results analysis

9QUARTERLY TECH REPORT – Q3: HEALTHTECH

HealthTech: Selected European Fundraisings in Q3 2015

DATE COMPANY TYPE OF ROUND

FUNDS RAISED

($M)INVESTOR PARTICIPATON COMPANY DESCRIPTION COMPANY

LOCATION

Sep-15 Seed 0.3 IT Translation Investissement Pharmaceutical data management and analysis system

Sep-15 DESKTOP GENETICS Venture 2.1

IQ Capital Partners LLP; London Business Angels; Funding London; Capital Enterprise, Investment Arm

Genome engineering and editing software

Sep-15 Seed 0.3 - Online veterinarian consultation app

Aug-15 Series A - Wild Blue Cohort Online consumer care platform

Aug-15 Series A 3.4 LEO Pharma A/S; Personal Health Solutions Capital

Skin health tracking and inspection mobile application

Jul-15 Seed 0.2 Esade Ban Angels Lung image analysis web application

Jul-15 Seed 1.5 - Online GP consultation platform for desktop and smartphone

Jul-15 Seed - Health Innovations Healthcare quality data gathering and reporting software

Jul-15 Seed 5.0 Smedvig Capital Limited Personalised healthcare information assistant applications

Sources: Press releases, Capital IQ and Results analysis

10

OPERATING METRICS VALUATION METRICSPRICE % OF 52 MARKET TOTAL NET ENTERPRISE REVENUE REV. GROWTH GROSS MARGIN REVENUE EBITDA

COMPANY (30-SEP-15) WEEK HIGH CAP CASH DEBT VALUE CY2015 CY15-16 HISTORICAL CY2015 CY2016 CY2015 CY2016 CY2015 CY2016

GENERALISTS WITH SIGNIFICANT HEALTHTECH EXPOSURE

Oracle 36.12 77% 157,128 55,930 (13,439) 143,689 37,947 1.5% 60.7% 45.0% 46.7% 3.8 x 3.7 x 8.4 x 8.0 xEMC 24.16 78% 46,961 7,742 1,163 48,124 25,167 4.5% 62.4% 25.5% 26.8% 1.9 x 1.8 x 7.5 x 6.8 xSAP 64.55 82% 78,855 3,990 7,177 86,032 22,735 5.3% 72.2% 34.4% 34.5% 3.8 x 3.6 x 11.0 x 10.4 xThermo Fisher Scientific 122.28 87% 49,262 808 13,257 62,519 16,809 4.5% 46.2% 25.3% 26.3% 3.7 x 3.6 x 14.7 x 13.5 xComputer Sciences Corporation 61.38 84% 8,576 2,199 443 9,019 11,687 (1.0%) 24.1% 14.4% 17.6% 0.8 x 0.8 x 5.4 x 4.4 xThomson Reuters 40.04 98% 31,207 1,299 8,060 39,267 9,212 2.6% 28.0% 27.9% 29.2% 3.2 x 3.1 x 11.4 x 10.6 xAspen Technology 37.91 81% 3,198 215 (215) 2,983 456 7.3% 81.4% 44.4% 46.9% 6.5 x 6.1 x 14.7 x 13.0 x 25th percentile 2.1% 37.1% 25.4% 26.6% 2.5 x 2.5 x 8.0 x 7.4 xMedian 4.5% 60.7% 27.9% 29.2% 3.7 x 3.6 x 11.0 x 10.4 x75th percentile 4.9% 67.3% 39.4% 40.6% 3.8 x 3.7 x 13.1 x 11.8 x

HEALTHCARE IT - EUROPE

CompuGroup Medical 32.90 80% 1,636 23 390 2,026 615 6.5% 33.9% 22.0% 23.1% 3.3 x 3.1 x 15.0 x 13.4 xCegedim 40.18 84% 561 316 190 751 572 2.8% 46.2% 19.1% 19.8% 1.3 x 1.3 x 6.9 x 6.4 xEMIS Group 15.89 99% 1,004 9 6 1,009 243 7.2% 48.2% 30.8% 31.0% 4.2 x 3.9 x 13.5 x 12.5 xNoemaLife 6.87 96% 52 6 42 94 119 12.8% 22.4% 19.2% 19.6% 1.1 x 1.0 x 5.8 x 5.0 xServelec Group 4.86 98% 341 6 (9) 332 101 6.2% 45.3% 24.3% 25.4% 3.3 x 3.1 x 13.6 x 12.3 xCraneware 10.27 98% 275 42 (42) 234 48 10.9% 93.0% 30.5% 30.5% 4.9 x 4.4 x 15.9 x 14.3 x 25th percentile 6.2% 36.7% 19.9% 20.7% 1.8 x 1.7 x 8.5 x 7.9 xMedian 6.8% 45.7% 23.2% 24.3% 3.3 x 3.1 x 13.5 x 12.4 x75th percentile 10.0% 47.7% 29.0% 29.3% 3.9 x 3.7 x 14.6 x 13.1 x

HEALTHCARE IT - US

McKesson 185.03 76% 43,452 5,635 5,677 49,129 190,425 6.1% 6.3% 2.6% 2.8% 0.3 x 0.2 x 10.0 x 8.8 xCerner 59.96 79% 21,502 558 65 21,567 4,743 20.1% 84.5% 33.6% 34.8% 4.5 x 3.8 x 13.5 x 10.9 xIMS Health 29.10 87% 9,788 348 3,856 13,644 2,911 10.2% 53.4% 31.1% 31.7% 4.7 x 4.3 x 15.1 x 13.4 xAllscripts Healthcare Solutions 12.40 80% 2,343 77 595 2,938 1,406 5.3% 45.5% 17.2% 19.2% 2.1 x 2.0 x 12.1 x 10.3 xathenahealth 133.35 87% 5,279 116 185 5,463 920 21.5% 59.8% 18.2% 18.4% 5.9 x 4.9 x 32.6 x 26.6 xMedAssets 20.06 84% 1,211 10 831 2,042 763 1.7% 76.1% 31.0% 31.6% 2.7 x 2.6 x 8.6 x 8.3 xQuality Systems 12.48 67% 753 117 (117) 636 505 6.0% 54.6% 13.9% 15.6% 1.3 x 1.2 x 9.1 x 7.6 xInovalon Holdings 20.83 62% 3,216 797 (507) 2,710 437 24.7% 68.8% 36.5% 36.8% 6.2 x 5.0 x 17.0 x 13.5 xMerge Healthcare 7.10 100% 713 20 249 962 251 9.2% 60.8% 21.6% 23.1% 3.8 x 3.5 x 17.8 x 15.2 xHealthstream 21.81 67% 699 140 (140) 559 205 13.7% 56.6% 15.4% 16.9% 2.7 x 2.4 x 17.7 x 14.2 xComputer Programs & Systems 42.13 65% 476 37 (37) 439 189 6.3% 45.9% 20.8% 22.9% 2.3 x 2.2 x 11.2 x 9.6 xEvolent Health 15.96 69% 941 219 75 1,017 159 35.0% 27.5% (24.4%) (13.8%) 6.4 x 4.7 x n.m. n.m.Castlight Health 4.20 31% 465 164 (164) 301 76 52.3% 39.1% (83.8%) (43.5%) 4.0 x 2.6 x n.m. n.m.Teladoc 22.29 63% 909 172 (22) 887 75 57.3% 77.2% (67.7%) (26.1%) 11.9 x 7.5 x n.m. n.m. 25th percentile 6.3% 45.9% 13.9% 15.6% 2.7 x 2.4 x 11.4 x 9.7 xMedian 13.7% 56.6% 18.2% 19.2% 4.0 x 3.5 x 14.3 x 12.2 x75th percentile 24.7% 68.8% 31.0% 31.6% 5.9 x 4.7 x 17.5 x 14.0 x

BIOPHARMA IT

Medidata Solutions 42.11 69% 2,383 266 (19) 2,363 404 19.5% 74.7% 23.2% 25.0% 5.9 x 4.9 x 25.2 x 19.6 xVeeva Systems 23.41 70% 3,573 438 (438) 3,136 394 26.8% 62.9% 27.7% 29.2% 8.0 x 6.3 x 28.7 x 21.5 xInstem 2.90 88% 37 2 - 28 23 6.1% 14.8% 15.4% 17.3% 1.6 x 1.5 x 10.3 x 8.7 x 25th percentile 12.8% 38.9% 19.3% 21.1% 3.7 x 3.2 x 17.8 x 14.1 xMedian 19.5% 62.9% 23.2% 25.0% 5.9 x 4.9 x 25.2 x 19.6 x75th percentile 23.1% 68.8% 25.5% 27.1% 6.9 x 5.6 x 26.9 x 20.6 x

EBITDA MARGIN

QUARTERLY TECH REPORT – Q3: HEALTHTECH

HealthTech: Selected Publicly Traded Companies

Note: Calendarised to December year end; $ millions, except share price data; Multiples capped at 20x EV / Revenue and 50x EV / EBITDA; Net debt includes minority interest Note: (1)McKesson excluded from ‘Healthcare IT – US’ summary analysis above because majority of revenue is generated from pharmaceutical distributionNote: (2) Teladoc current EV adjusted to reflect additional cash from IPO not accounted for in most recent Balance Sheet Source: Capital IQ

(1)

(2)

11QUARTERLY TECH REPORT – Q3: HEALTHTECH

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