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INDUSTRIAL TECHNOLOGY – INDUSTRY UPDATE

Q1 2020

Industrial Technology – Industry Update | Q1 2020

Key Contacts – Europe

John Arendale

+1 804 915 [email protected]

Key Contacts – USA

Eric Logue


Jenson Dunn


Jeffery Perkins

+49 (0)69 36506 [email protected]

Florian Ripperger


Giles Tucker


Robert Engelhardt


Chris Toussaint


Introduction

Page | 1

Industrial Technology - Update

Harris Williams is pleased to present our industrial technology industry update for Q12020. This report provides commentary and analysis on current capital market trends anddynamics within the industrial technology space.

The manufacturing industry is transforming to Industry 4.0, which means that productionprocesses increasingly consist of smart, connected devices and machines that providecompanies access to an increasing amount of data. Augmented by advances in artificialintelligence and machine learning, manufacturing processes are becoming moreintelligent, solving issues without human intervention and driving an evolution in processoptimization. You will find further information in our know-how section.

The year 2019 ended with positive news and less uncertainty across all asset classes andgeographies. However, the business cycle is mature, and central banks in the U.S. andEurope restarted their monetary easing programs.

We hope you find this edition helpful, and we encourage you to contact us directly if youwould like to discuss our perspective on current industry trends or our relevant industryexperience.

HW Deal Spotlight: teamtechnik

teamtechnik Maschinen und Anlagen GmbH (ttMA) announced the sale of a majority stake in its Polish subsidiaryteamtechnik Production Technology Sp. z o.o. (ttPT) to TDJ S.A. (TDJ). ttMA is an international market leader forinnovative production technology, assembly and functional test systems across the automotive, medical andenergy industries. Its former Polish subsidiary ttPT focuses on next generation automotive assembly systems.

Harris Williams exclusively advised the shareholders of ttPT during the sales process.

Read the full press release here. Please contact any of the HW team members above if you would like to receiveadditional information on this transaction.

Our team will attend the following trade fairs over the next few months. Please let usknow if you will be at one of the conferences and would like to connect.

has been acquired by

(Poland)

Industry Events

Coming Up: Trade Fairs 2020

March in Stuttgart, Germany: The LogiMAT is the largest annual trade fair for intralogistics solutions and process management in Europe.

February in Orlando, Florida: World's largest HVACR (heating ventilation, air-conditioning and refrigeration) event.

March in Atlanta, Georgia: Leading trade show for supply chain, manufacturing and distribution industries.

March in Las Vegas, Nevada: ISC West is the largest converged security industry trade show in the U.S.

April in Hannover, Germany: World´s leading industrial trade fair for a wide range of topics: Additive manufacturing, automation, industrial 5G, material handling, predictive maintenance, robotics, etc.

June in Nuremburg, Germany: The Sensor + Test trade fair includes exhibitors from the entire spectrum of measuring and testing systems.

https://www.harriswilliams.com/news/harris-williams-advises-teamtechnik-production-technology-its-sale-majority-stake-tdj-0



John Arendale



Eric Logue


Jenson Dunn


Jeffery Perkins


Florian Ripperger


Giles Tucker


Robert Engelhardt


Chris Toussaint


Even though the industrial internet of things (IIoT) isincreasingly becoming more accessible and important, c.75% of companies fail to move into a large-scale rollout.However, this fail rate does not affect investment plans of

many manufacturers. Eighty-three percent of companies plan to invest further insmart factory technologies within a time horizon of two to three years.Nonetheless, companies transforming to Industry 4.0 face challenges and arefrequently uncertain about how to move forward. One of the biggest challengesis the lack of technical skills and the understanding of implementing newtechnology. Other challenges include data/IP privacy concerns, lack ofinteroperability between systems, security threats, and a growing amount andvelocity of data. Read more about the biggest challenges and how to tackle themhere.

The Biggest Challenges for Smart Factories and How to Tackle Them

Page | 2


Automated guided vehicles (AGVs) were the original mobile robot technology,but advances in both machine vision and navigation led to autonomous mobilerobots (AMRs). Equipped with machine vision technology, these mobile robotscan react to environmental changes and are used to solve shortages ofemployees and flexibility challenges in factories and warehouses. The mainchallenges for AMRs today are power charging, payload and navigation. AMRsrequire optimized intelligent charging solutions, advanced navigationtechnology, and an increasing payload from applications in new industries, suchas aerospace. Read more about mobile robots here.

Advancing of Mobile Robots

The next-generation wireless technology, 5G, is just being introduced, andindustry participants are eagerly awaiting the rollout. According to Gartner, theglobal 5G market will be worth $4.2 billion by the end of 2020 as companiesinvest in infrastructure upgrades.

The impact on the manufacturing industry is not clear yet. Industry 4.0 requiresconnectivity with a stable and fast connection, e.g. to view problems in realtime.5G is expected to offer peak data rates of 10 Gbps and very low radio latencies,which support avoiding operational disruptions to enable seamless machine-type communication. Additionally, the new wireless technology could replacewired connections and has the potential to push the smart factory beyond IoTand big data toward the adoption of virtual reality and augmented reality. Readmore about 5G and its impact here.

Will the smart factory benefit from 5G?

The acceptance of industrial 3D printing, so-called additive manufacturing (AM),is growing across all industries. The number of manufacturing companies using3D printing for full-scale production rather than just prototyping has increasedby nearly 50% over the last year. Forty-seven percent of companies interviewedare already using the technology in production.

Eighty-five percent of manufacturers see the potential of industrial-scaleadditive manufacturing to increase their revenues. Other key drivers for manymanufacturing companies include reduced costs and improved customerresponse time. However, to realize the full potential of AM and overcomesystem inflexibility, manufacturers need an open ecosystem. Read more here.

Additive Manufacturing on the Rise

https://www.industryweek.com/technology-and-iiot/article/21119005/what-will-it-take-to-clear-industry-40s-highest-hurdles

https://www.ehstoday.com/safety-technology/article/21920421/the-challenges-of-using-mobile-robots

https://www.zdnet.com/article/will-the-smart-factory-benefit-from-5g-industry-experts-weigh-in/

https://www.industryweek.com/technology-and-iiot/article/21120529/survey-says-additive-manufacturing-on-the-rise



John Arendale



Eric Logue


Jenson Dunn


Jeffery Perkins


Florian Ripperger


Giles Tucker


Robert Engelhardt


Chris Toussaint


Page | 3


Our Know-how section presents a trending strategic concept in the industrialtechnology space.

Machine learning refers to an artificial intelligence (AI)application that provides systems the ability toautomatically learn and improve from experiencewithout being explicitly programmed. Machine learningfocuses on the development of computer programs thatcan access data and use it to learn for themselves.

Machine learning algorithms can be, and are, used everywhere from our day-to-day lives to industrial applications across all industries. It is used to personalizeadvertisements, detect frauds, diagnose diseases, regulate traffic and navigateself-driving cars.

With the advancing transformation to Industry 4.0, manufacturing companiesinstalled robotics, computers and equipment, which are connected via theinternet of things (IoT). Smart devices and components produce and collectcopious amounts of data, which can be analyzed by machine learning algorithms.These algorithms allow the automated optimization of specific processes.

The full potential of machine learning can only be realized when companiesovercome current challenges, including understanding which processes needautomation, lack of quality data, inadequate infrastructure, implementation ofnew machine learning methodologies in already existing methodologies and thelack of skilled resources.

Market forecast

According to a report by Grand View Research, the global machine learningmarket is forecast to grow to c. $97 billion by 2025 – a CAGR of 43.8% over theforecast period from 2018 to 2025. You can find the report here. A similar reportfrom Zion Market Research forecasts a CAGR of 44.1% from 2017 to 2024.

Further Reading

What Is Machine Learning? – MIT Technology Review

What Kind of Problems Can Machine Learning Solve? – CFO

The Ultimate Learning Machines – The Wall Street Journal

5 Common Machine Learning Problems & How to Solve Them – ProV

Know-how: Machine Learning

CAGR: 43.8%

Machine learning market

$11

$97

2019 2020 2021 2022 2023 2024 2025

Source: Grand View Research (in $ billions)

https://www.grandviewresearch.com/press-release/global-machine-learning-market

https://www.globenewswire.com/news-release/2019/07/23/1886396/0/en/Industry-Report-Global-Machine-Learning-Market-Size-Will-Grow-to-USD-20-83-Billion-by-2024.html

https://www.technologyreview.com/s/612437/what-is-machine-learning-we-drew-you-another-flowchart/

https://www.cfo.com/machine-learning/2019/10/what-kind-of-problems-can-machine-learning-solve/

https://www.wsj.com/articles/the-ultimate-learning-machines-11570806023

https://www.provintl.com/blog/5-common-machine-learning-problems-how-to-beat-them


Valuation Metrics Overview

Page | 4

Source: Capital IQ (as of Jan. 21, 2020)

Public Markets | Key Trading Statistics

Peer group trailing average LTM share price; indexed

Geopolitical risks faded in Q4 and created room for hope

In Q4 of 2019 the global stock market recovered from geopolitical uncertainties, which had dominated the market for mostof the year. According to Fidelity, almost all asset classes logged sizable absolute gains in 2019. Global equities were fueledby further monetary easing by central banks and the de-escalation of the U.S.’ trade stance with China. U.S. large-capequities outperformed stocks from non-U.S. countries. However, Fidelity states that “the global economy remains sluggishbut is showing signs that conditions are no longer deteriorating.”

According to Schroders, equities in the eurozone benefited from the better than expected economic data from Germany aswell as the recent trade deal convergence between the U.S. and China. Another positive impact came from the EuropeanCentral Bank (ECB) and the Federal Reserve as they restarted quantitative easing and Treasury bill purchases. ChristineLagarde took over as president of the ECB in November 2019 and subsequently urged governments to “boost publicinvestment in order to increase domestic demand in Europe.”


Stock Price % Change TEV / Revenue TEV / EBITDA TEV / LTM EBITDA LTM Margins Revenue Growth

Subsector Median 1 Month 12 Months LTM 2020 LTM 2020 Jan-19 Jul-19 Current Gross EBITDA

Automation

Automation and Robotics 1.3% 14.8% 1.0x 1.0x 12.4x 10.1x 9.5x 11.1x 11.7x 29.7% 12.1%

Automation Components 2.2% 32.8% 2.9x 2.7x 15.7x 14.4x 11.4x 11.8x 15.7x 35.7% 20.6%

Test & Measurement

Sensors and Instrumentation 4.7% 26.2% 3.1x 3.0x 18.4x 14.5x 13.3x 16.0x 18.7x 38.9% 18.1%

Condition Monitoring (1.6%) 1.3% 0.9x 0.9x 19.0x 8.4x 17.1x 17.2x 19.0x 32.1% 9.3%

Engineered Components

Pumps and Filtration 2.4% 24.4% 2.3x 2.5x 15.1x 14.5x 13.6x 14.2x 15.1x 35.5% 17.6%

Valves and Fittings 1.9% 29.2% 2.1x 2.2x 11.9x 10.8x 10.1x 10.3x 11.9x 34.0% 15.9%

Communication & Connectivity

Connectiv ity / Smart City 1.4% 19.5% 1.7x 1.6x 13.0x 11.3x 11.2x 11.8x 13.0x 34.7% 11.4%

ERP & Business Management Software 4.8% 31.7% 6.1x 5.1x 27.6x 23.4x 20.8x 28.6x 27.6x 68.7% 21.8%

100%

110%

120%

130%

140%

150%

Jan-19 Mar-19 May-19 Jul-19 Sep-19 Nov-19 Jan-20

Automation Test & Measurement Engineered Components

Communication & Connectivity Euro STOXX 50 Index S&P 500

https://www.fidelity.com/viewpoints/market-and-economic-insights/quarterly-market-update

https://www.schroders.com/en/insights/economics/quarterly-markets-review---q4-2019/


Page | 5

Public Markets Overview


TEV / LTM EBITDA TEV / 2020E EBITDA

NET DEBT / LTM EBITDA AVERAGE EBITDA MARGIN (2016 – 2018)

AVERAGE CAPEX / REVENUE (2016 – 2018) LTM RESEARCH & DEVELOPMENT / REVENUE

Automation Test & Measurement Engineered Components Communication & Connectivity

13.6%

4.6%

0.7%

1.3%

3.9%

5.3%

2.7%

2.0%

ERP & Business ManagementSoftware

Connectivity / Smart City

Valves and Fittings

Pumps and Filtration

Condition Monitoring

Sensors and Instrumentation

Automation Components

Automation and Robotics

23.5%

17.3%

17.0%

17.9%

15.8%

21.1%

22.3%

15.5%



Valves and Fittings






(0.3x)

2.6x

1.8x

1.7x

1.3x

2.1x

0.6x



Valves and Fittings






18.6%

15.0%

14.8%

20.0%

12.8%

17.9%

19.6%

15.1%



Valves and Fittings






23.4x

11.3x

10.8x

14.5x

8.4x

16.1x

14.4x

10.1x



Valves and Fittings






27.6x

13.0x

11.9x

15.1x

19.0x

18.6x

15.7x

12.4x



Valves and Fittings






4.5x


Page | 6

Public Comparables Detail

Source: Capital IQ (as of Jan. 21, 2020); $ in Millions, except per share amounts

Automation

LTM Margins Current 1-Month 1-Year % of TEV / EBITDA Revenue

EBITDA Gross TEV Price Change Change LTM High LTM 2020


ATS Automation Tooling Systems Inc. 13.3% 26.7% 1,682 16.51 1.1% 31.2% 96.3% 12.4x 10.5x

Barnes Group Inc. 22.0% 35.6% 4,236 66.79 7.9% 14.8% 99.8% 12.8x 11.8x

Dürr Aktiengesellschaft 8.5% 22.2% 2,433 32.92 (2.8%) (17.7%) 70.3% 6.5x 6.4x

GEA Group Aktiengesellschaft 8.3% 29.3% 5,217 31.82 (2.7%) 15.8% 94.7% 11.7x 8.8x

Fanuc Corporation 28.6% 38.8% 31,911 190.31 1.3% 13.2% 95.0% 21.8x 21.8x

Kawasaki Heavy Industries, Ltd. 7.5% 16.4% 8,175 21.92 (3.1%) (7.3%) 82.3% 7.1x 7.3x

Krones AG 6.2% 46.9% 2,650 78.52 4.6% (9.9%) 79.7% 9.6x 7.6x

Metso Corporation 13.6% 29.7% 6,606 40.80 3.1% 38.6% 92.5% 12.5x 10.1x

Nachi-Fujikoshi Corp. 12.1% 21.6% 1,687 42.21 (5.3%) 10.6% 84.1% 6.1x 6.0x

Teradyne, Inc. 28.4% 58.4% 11,885 70.29 1.4% 113.6% 99.3% 18.2x 15.8x

YASKAWA Electric Corporation 9.8% 30.8% 10,401 38.63 1.3% 40.6% 93.3% 27.6x 22.3x

Median 12.1% 29.7% 1.3% 14.8% 93.3% 12.4x 10.1x

Mean 14.4% 32.4% 0.6% 22.1% 89.8% 13.3x 11.7x


ABB Ltd 9.4% 31.4% 59,222 23.88 (0.6%) 23.5% 96.6% 22.2x 15.5x

AirTAC International Group 32.7% 46.4% 3,605 17.34 20.8% 47.8% 96.1% 22.3x 17.1x

Altra Industrial Motion Corp. 20.6% 35.7% 3,883 36.65 2.9% 26.2% 96.1% 10.1x 10.8x

AMETEK, Inc. 27.0% 34.7% 25,337 101.78 2.0% 40.7% 99.5% 18.3x 17.3x

CKD Corporation 9.0% 24.6% 1,212 17.85 6.7% 92.0% 97.0% 14.2x 11.6x

Danaher Corporation 23.8% 55.7% 124,128 163.06 6.7% 51.8% 99.9% 25.6x 21.9x

Dover Corporation 18.3% 36.7% 20,600 119.53 3.9% 48.1% 99.6% 15.7x 14.4x

Keyence Corporation 53.1% 82.0% 80,233 361.75 2.2% 43.7% 98.3% 28.6x 26.6x

Hiwin Technologies Corp. 23.2% 35.6% 4,010 11.02 17.9% 46.9% 98.2% 23.5x 19.0x

IMI plc 18.4% 43.5% 4,887 15.40 0.0% 24.4% 97.5% 11.0x 10.8x

Moog Inc. 12.5% 27.8% 4,003 93.03 5.4% 14.2% 94.4% 10.8x 10.0x

Nidec Corporation 11.9% 21.2% 44,745 142.11 2.3% 27.3% 93.0% 26.2x 17.9x

Parker-Hannifin Corporation 17.5% 25.4% 32,433 207.00 0.1% 27.4% 97.6% 13.1x 12.1x

Rexnord Corporation 20.6% 38.9% 5,170 33.52 2.0% 32.8% 99.6% 12.2x 10.7x

Rockwell Automation, Inc. 22.6% 43.3% 25,198 204.74 0.2% 24.3% 98.5% 16.7x 16.1x

Sensata Technologies Holding plc 25.4% 35.3% 10,965 52.71 (1.4%) 11.1% 96.3% 12.5x 12.1x

SMC Corporation 32.0% 50.2% 27,213 480.48 3.7% 48.2% 97.4% 17.0x 16.0x

Schneider Electric S.E. 17.0% 39.2% 67,139 104.16 1.8% 52.2% 99.2% 13.0x 11.9x

Siemens Aktiengesellschaft 11.4% 29.9% 132,661 129.47 (1.1%) 13.4% 97.4% 12.2x 10.8x

Median 20.6% 35.7% 2.2% 32.8% 97.5% 15.7x 14.4x

Mean 21.4% 38.8% 4.0% 36.6% 97.5% 17.1x 14.9x

Overall Median 18.4% 35.6% 2.0% 26.7% 97.2% 13.0x 12.0x

Overall Mean 19.3% 36.7% 3.2% 28.3% 95.0% 15.7x 13.7x

Stock Performance


Page | 7



Note: 1) TE Connectivity has signed an agreement to acquire First Sensor. TE expects to complete the acquisition by mid-2020 at the latest.

1)

Test & Measurement




AMETEK, Inc. 27.0% 34.7% 25,337 101.78 2.0% 40.7% 99.5% 18.3x 17.3x

Badger Meter, Inc. 20.0% 38.6% 1,827 63.45 (3.0%) 21.0% 95.2% 21.7x 20.0x

ESCO Technologies Inc. 18.8% 37.4% 2,829 98.99 8.1% 50.0% 98.7% 18.5x 18.5x

First Sensor AG 8.9% 53.6% 467 42.61 1.0% 90.9% 99.2% 29.0x 16.2x

FLIR Systems, Inc. 22.2% 50.3% 7,877 54.66 4.3% 20.4% 98.4% 19.2x 16.1x

Fortive Corporation 21.2% 50.1% 31,954 78.78 4.0% 7.9% 88.0% 21.3x 17.1x

Honeywell International Inc. 23.3% 33.1% 140,171 183.23 3.9% 29.2% 99.5% 16.3x 14.7x

I tron, Inc. 11.4% 30.5% 4,442 87.84 5.0% 61.2% 99.7% 15.9x 14.3x

Jenoptik AG 14.7% 35.0% 1,576 26.42 (6.3%) (15.0%) 64.8% 11.8x 10.2x

Keyence Corporation 53.1% 82.0% 80,233 361.75 2.2% 43.7% 98.3% 28.6x 26.6x

Keysight Technologies, Inc. 25.2% 58.9% 20,094 105.37 2.2% 51.4% 95.8% 18.6x 16.2x

Meggitt PLC 16.1% 35.8% 8,481 9.06 7.5% 39.9% 99.3% 18.8x 11.8x

MTS Systems Corporation 17.4% 39.9% 1,445 51.67 8.7% 8.3% 81.6% 9.3x 10.0x

National Instruments Corporation 15.9% 75.2% 5,654 46.08 8.3% 0.4% 95.6% 26.4x 21.2x

Oxford Instruments plc 16.7% 52.5% 1,198 20.72 7.8% 81.1% 95.3% 16.5x 13.8x

Sensata Technologies Holding plc 25.4% 35.3% 10,965 52.71 (1.4%) 11.1% 96.3% 12.5x 12.1x

Spectris plc 10.7% 56.0% 4,719 36.66 (3.4%) 15.6% 94.5% 21.2x 12.3x

TE Connectiv ity Ltd. 21.9% 32.7% 36,718 100.18 4.4% 23.3% 99.4% 12.4x 12.8x

Teledyne Technologies Incorporated 19.3% 39.3% 15,197 376.88 10.1% 67.4% 99.1% 24.9x 23.2x

Vaisala Oyj 14.2% 54.3% 1,346 37.57 9.6% 81.8% 97.7% 22.1x 18.4x

Yokogawa Electric Corporation 13.4% 43.3% 4,676 18.98 6.5% 6.7% 87.9% 9.3x 8.3x

Median 18.8% 39.9% 4.3% 29.2% 97.7% 18.6x 16.1x

Mean 19.8% 46.1% 3.9% 35.1% 94.5% 18.7x 15.8x


Hexagon AB (publ) 28.7% 62.5% 23,092 56.48 1.0% 14.0% 93.5% 19.0x 14.8x

Mistras Group, Inc. 9.3% 32.1% 707 13.71 (6.2%) (10.1%) 80.9% 10.2x 8.4x

Team, Inc. 2.7% 27.8% 886 15.85 (1.6%) 1.3% 80.7% 27.7x 8.4x

Median 9.3% 32.1% (1.6%) 1.3% 80.9% 19.0x 8.4x

Mean 13.5% 40.8% (2.3%) 1.7% 85.0% 19.0x 10.5x


Overall Mean 19.1% 45.5% 3.1% 30.9% 93.3% 18.7x 15.1x

Stock Performance


Page | 8







Colfax Corporation 14.1% 35.5% 8,702 38.07 7.0% 59.4% 97.9% 13.8x 14.1x

Donaldson Company, Inc. 16.4% 33.4% 7,763 55.87 (3.7%) 15.7% 95.8% 16.8x 15.3x

ESCO Technologies Inc. 18.8% 37.4% 2,829 98.99 8.1% 50.0% 98.7% 18.5x 18.5x

Essent Group Ltd. 78.2% 89.0% 5,291 51.88 (1.7%) 37.3% 92.9% 8.1x NA

Flowserve Corporation 13.1% 33.4% 7,627 50.49 1.2% 17.1% 93.2% 15.1x 12.6x

Franklin Electric Co., Inc. 12.7% 32.9% 2,983 60.41 6.1% 30.2% 99.3% 18.0x 16.0x

Graco Inc. 27.8% 52.4% 9,233 53.20 2.4% 23.4% 98.7% 20.3x 19.4x

IDEX Corporation 27.2% 45.4% 13,881 175.85 2.6% 24.9% 99.5% 20.4x 19.7x

IMI plc 18.4% 43.5% 4,887 15.40 0.0% 24.4% 97.5% 11.0x 10.8x

ITT Inc. 17.6% 31.8% 6,141 73.44 (0.2%) 38.0% 97.2% 12.4x 10.9x

Pentair plc 18.1% 35.5% 9,085 47.29 3.9% 14.9% 99.7% 17.0x 15.0x

SPX FLOW, Inc. 12.3% 32.1% 2,577 47.15 (4.0%) 40.4% 94.4% 10.3x 13.1x

Sunoco LP 3.6% 7.2% 6,298 32.58 6.9% 11.8% 95.6% 10.7x 9.3x

Trelleborg AB (publ) 16.2% 31.8% 6,471 17.97 (1.8%) 6.0% 96.9% 10.9x 9.5x

Xylem Inc. 17.7% 39.1% 17,240 83.46 6.2% 17.2% 97.4% 18.5x 16.2x

Median 17.6% 35.5% 2.4% 24.4% 97.4% 15.1x 14.5x

Mean 20.8% 38.7% 2.2% 27.4% 97.0% 14.8x 14.3x

Valves and Fittings

Aalberts NV 15.5% 62.8% 6,011 45.03 0.7% 31.0% 99.0% 12.2x 10.6x

CIRCOR International, Inc. 11.2% 30.0% 1,493 44.69 (1.5%) 64.5% 93.5% 11.5x 10.8x

Crane Co. 17.2% 36.0% 5,965 87.40 1.7% 9.5% 95.8% 10.6x 9.2x

Curtiss-Wright Corporation 20.6% 36.0% 6,982 148.67 4.1% 32.7% 99.2% 13.6x 12.8x

Indutrade AB (publ) 15.1% 34.2% 5,219 37.88 6.7% 47.4% 99.2% 18.9x 16.3x

Mueller Industries, Inc. 9.6% 15.9% 2,219 32.07 2.8% 27.1% 93.7% 9.4x NA

Mueller Water Products, Inc. 19.4% 33.9% 2,193 12.13 2.6% 24.7% 98.9% 11.7x 10.2x

Parker-Hannifin Corporation 17.5% 25.4% 32,433 207.00 0.1% 27.4% 97.6% 13.1x 12.1x

Watts Water Technologies, Inc. 15.4% 42.4% 3,653 101.46 2.0% 37.9% 99.7% 14.9x 13.9x

The Weir Group PLC 16.4% 33.0% 6,594 18.85 (5.4%) 3.2% 79.7% 11.7x 10.4x

Median 15.9% 34.0% 1.9% 29.2% 98.3% 11.9x 10.8x

Mean 15.8% 34.9% 1.4% 30.5% 95.6% 12.8x 11.8x


Overall Mean 18.8% 37.2% 1.9% 28.6% 96.4% 14.0x 13.3x

Stock Performance


Page | 9







ABB Ltd 9.4% 31.4% 59,222 23.88 (0.6%) 23.5% 96.6% 22.2x 15.5x

Cisco Systems, Inc. 31.2% 63.4% 199,564 49.02 3.3% 8.9% 84.1% 12.3x 10.5x

Conduent Incorporated 11.1% 21.9% 2,991 5.76 (12.9%) (52.9%) 37.2% 5.8x 6.5x

Cubic Corporation 9.4% 28.8% 2,595 69.85 11.1% 12.0% 92.9% 18.4x 13.5x

FLIR Systems, Inc. 22.2% 50.3% 7,877 54.66 4.3% 20.4% 98.4% 19.2x 16.1x

Fortive Corporation 21.2% 50.1% 31,954 78.78 4.0% 7.9% 88.0% 21.3x 17.1x

IBI Group Inc. 10.2% 24.5% 285 4.23 (5.0%) 40.8% 92.8% 8.0x 7.8x

ICT Group N.V. 9.9% 26.8% 155 12.75 0.5% 11.1% 76.7% 9.3x 7.5x

init innovation in traffic systems SE 14.3% 34.7% 276 25.82 1.4% 39.5% 95.5% 11.5x 11.7x

I tron, Inc. 11.4% 30.5% 4,442 87.84 5.0% 61.2% 99.7% 15.9x 14.3x

Jenoptik AG 14.7% 35.0% 1,576 26.42 (6.3%) (15.0%) 64.8% 11.8x 10.1x

Kapsch TrafficCom AG 7.9% 57.0% 588 30.70 (8.8%) (25.7%) 74.3% 8.9x 8.4x

Kyosan Electric Manufacturing Co., Ltd. 6.3% 21.2% 547 5.65 0.5% 44.5% 96.0% 13.7x 9.5x

Norbit ASA 20.4% 54.9% 130 2.22 4.1% NA 80.2% 9.5x 6.3x

QUALCOMM Incorporated 39.1% 64.6% 113,187 95.91 7.9% 73.5% 99.7% 11.9x 13.6x

Schneider Electric S.E. 17.0% 39.2% 67,139 104.16 1.8% 52.2% 99.2% 13.0x 11.9x

Siemens Aktiengesellschaft 11.4% 29.9% 132,661 129.47 (1.1%) 13.4% 97.4% 12.2x 10.8x

SP Plus Corporation 13.2% 24.6% 1,712 41.11 (5.8%) 19.6% 86.9% 14.4x 13.7x

Thales S.A. 11.2% 25.7% 28,770 110.72 7.5% (2.3%) 88.8% 13.6x 9.7x

TKH Group N.V. 11.4% 45.5% 2,904 55.75 (0.2%) 19.4% 90.4% 13.6x 11.3x

Verra Mobility Corporation 47.3% 67.5% 3,232 15.25 7.1% 58.9% 99.3% 15.8x 12.1x

Median 11.4% 34.7% 1.4% 19.5% 92.8% 13.0x 11.3x

Mean 16.7% 39.4% 0.8% 20.5% 87.6% 13.4x 11.3x

ERP & Business Management Software

American Software, Inc. 7.0% 53.4% 398 14.83 (0.1%) 36.2% 86.7% 52.1x 26.0x

Capital Senior Liv ing Corporation 10.6% 32.0% 1,319 2.99 (4.2%) (62.8%) 36.7% 27.6x 17.5x

Dassault Systèmes SE 29.3% 84.9% 43,539 174.94 7.5% 37.9% 99.6% 35.2x 23.4x

Manhattan Associates, Inc. 21.8% 54.7% 5,374 85.24 6.9% 76.2% 95.2% 40.5x 38.0x

Microsoft Corporation 44.2% 66.6% 1,223,734 167.10 6.2% 55.1% 99.8% 21.3x 18.8x

Oracle Corporation 40.9% 79.7% 207,789 55.13 2.9% 11.9% 91.1% 12.8x 10.9x

QAD Inc. 0.9% 54.4% 973 53.24 4.8% 30.2% 98.8% NM 42.5x

The Sage Group plc 24.9% 92.9% 10,824 9.45 (3.0%) 15.8% 88.0% 18.2x 16.6x

salesforce.com, inc. 14.5% 75.0% 164,273 182.23 10.7% 19.5% 98.8% 71.6x 27.9x

SAP SE 26.2% 69.8% 178,045 139.27 4.0% 31.7% 99.6% 23.1x 14.9x

TOTVS S.A. 11.8% 63.5% 3,082 17.43 3.8% 92.5% 100.0% 44.3x 24.2x

Upland Software, Inc. 23.9% 68.7% 1,273 40.67 12.5% 33.7% 74.1% 26.4x 12.6x

Zendesk, Inc. (17.0%) 70.5% 10,069 83.97 8.1% 29.1% 88.5% NM 99.6x

Median 21.8% 68.7% 4.8% 31.7% 95.2% 27.6x 23.4x

Mean 18.4% 66.6% 4.6% 31.3% 89.0% 33.9x 28.7x


Overall Mean 17.3% 48.0% 1.6% 23.2% 88.2% 20.4x 15.7x

Stock Performance


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Our Sector Practice & Selected Experience


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