Sectorwatch:Outsourcing in South AmericaFebruary 2019

2

Outsourcing in South AmericaFebruary 2019 Sector Dashboard [4]

Public Basket Performance [5]

Operational Metrics [7]

Valuation Comparison [10]

Recent Deals [13]

Appendix [15]

7 Mile Advisors appreciates the opportunity to present this confidential information to the Company. This document is meant to be delivered only inconjunction with a verbal presentation, and is not authorized for distribution. Please see the Confidentiality Notice & Disclaimer at the end of the document. Alldata cited in this document was believed to be accurate at the time of authorship and came from publicly available sources. Neither 7 Mile Advisors nor 7MSecurities make warranties or representations as to the accuracy or completeness of third-party data contained herein. This document should be treated asconfidential and for the use of the intended recipient only. Please notify 7 Mile Advisors if it was distributed in error.

3

Overview

7MA provides Investment Banking & Advisory Services to the Business Services and Technology Industries globally. We advise on M&A and private capital transactions, and provide market assessments and benchmarking. As a close knit team with a long history together and a laser focus on our target markets, we help our clients sell their companies, raise capital, grow through acquisitions, and evaluate new markets. We publish our sectorwatch, a review of M&A and operational trends in the industries we focus.

Dashboard• Summary metrics on the sector• Commentary on market momentum by

comparing the most recent 12-month performance against the last 3-year averages.

Public Basket Performance• Summary valuation and operating metrics

for a basket of comparable public companies

Valuation Comparison• Graphical, detailed comparison of valuation

multiples for the public basket

Recent Deals• The most recently announced deals in the

sector

4

Dashboard

Operating Metrics

Valuation

4.4%

15.3%

35.9%

0% 10% 20% 30% 40% 50%

Median LTM Rev. Growth %

Median LTM EBITDA Margin %

Median LTM GP Margin %

3.2x

20.4x

26.9x

53.6x

0x 15x 30x 45x 60x

Median TEV / LTM Revenue

Median TEV / LTM EBITDA

Median TEV / LTM EBIT

Median Price / LTM Earnings

Revenue Growth

-0.14 1 - year revenue growth compared to revenue growth

average for last 3 years

Pricing / Gross Margin Momentum

0.3% 1 - year gross profit % compared to gross profit %

average for last 3 years

Profitability

-0.9% 1 - year EBITDA % compared to EBITDA % average for

last 3 years

Current revenue growth rate is less than the average of the last 3 years, indicating

that the market may be flattening or declining

Current gross profit margin exceeds the average of the last 3 years gross profit

margin by this amount, indicating supplier pricing power

Current EBITDA margin is less than the average of the last 3 years EBITDA

margins, which may signal further consolidation

5

Public Basket

Company TEV $mLTM Rev

$m

Rev Growth

YoY GP %EBITDA

%TEV / Rev X

TEV / EBITDA

X # FTEsRev / FTE $k

Endava plc 1,224 309 0% 34% 14% 4.0 27.6 4,819 64

Sonda S.A. 1,689 1,153 -5% 18% 11% 1.4 13.1 17,000 68

Globant S.A. 2,396 498 29% 38% 16% 4.8 29.5 6,753 74

Cognizant Technology Solutions Corporation 37,240 16,125 9% 39% 20% 2.4 11.3 281,600 57

Average 10,637 4,521 8% 32% 15% 3.1 20.4 77,543 66

Median 2,043 825 4% 36% 15% 3.2 20.4 11,877 66

share price as of 04Feb19

6

Public Basket Valuation Trends

Public EBITDA Multiples over Time

Public Revenue Multiples over Time 14.2x

2.7x

0x

5x

10x

15x

20x

25x

May-1

4

Aug-1

4

Nov-1

4

Feb-1

5

May-1

5

Aug-1

5

Nov-1

5

Feb-1

6

May-1

6

Aug-1

6

Nov-1

6

Feb-1

7

May-1

7

Aug-1

7

Nov-1

7

Feb-1

8

May-1

8

Aug-1

8

Nov-1

8

Feb-1

9

TEV/EBITDA - Median TEV/Revenue - Median

TEV/EBITDA - Average TEV/Revenue - Average

0x

1x

2x

3x

4x

May-1

4

Aug-1

4

Nov-1

4

Feb-1

5

May-1

5

Aug-1

5

Nov-1

5

Feb-1

6

May-1

6

Aug-1

6

Nov-1

6

Feb-1

7

May-1

7

Aug-1

7

Nov-1

7

Feb-1

8

May-1

8

Aug-1

8

Nov-1

8

Feb-1

9

TEV/Revenue - Median TEV/Revenue - Average

0x

10x

20x

30x

May-1

4

Aug-1

4

Nov-1

4

Feb-1

5

May-1

5

Aug-1

5

Nov-1

5

Feb-1

6

May-1

6

Aug-1

6

Nov-1

6

Feb-1

7

May-1

7

Aug-1

7

Nov-1

7

Feb-1

8

May-1

8

Aug-1

8

Nov-1

8

Feb-1

9

TEV/EBITDA - Median TEV/EBITDA - Average

7

Operational Metrics

LTM Gross Profit Margin % LTM EBITDA %

- 10% 20% 30%

Median

Sonda S.A.

Endava plc

Globant S.A.

Cognizant Technology

Solutions Corporation

- 10% 20% 30% 40%

Median

Sonda S.A.

Endava plc

Globant S.A.

Cognizant Technology

Solutions Corporation

8

Operational Metrics

LTM Revenue Growth %LTM Revenue per

Full Time Employee x 000’s

(10%) - 10% 20% 30%

Median

Sonda S.A.

Cognizant Technology

Solutions Corporation

Globant S.A.

$- $20 $40 $60 $80

Median

Cognizant Technology

Solutions Corporation

Endava plc

Sonda S.A.

Globant S.A.

9

Operational Metrics

Accounts Receivable TurnoverAverage Days

Sales Outstanding

0x 2x 4x 6x 8x 10x

Median

Sonda S.A.

Cognizant Technology

Solutions Corporation

Globant S.A.

0 20 40 60 80 100

Median

Globant S.A.

Cognizant

Technology

Solutions

Corporation

Sonda S.A.

10

Valuation

TEV / LTM Revenue TEV / LTM EBITDA

0x 1x 2x 3x 4x 5x

Median

Sonda S.A.

Cognizant

Technology Solutions

Corporation

Endava plc

Globant S.A.

0x 10x 20x 30x

Median

Cognizant

Technology

Solutions

Corporation

Sonda S.A.

Endava plc

Globant S.A.

11

Valuation

TEV / LTM EBIT Price / LTM Earnings

0x 10x 20x 30x 40x

Median

Cognizant

Technology

Solutions

Corporation

Sonda S.A.

Endava plc

Globant S.A.

0x 20x 40x 60x 80x 100x

Median

Cognizant Technology

Solutions Corporation

Globant S.A.

Endava plc

Sonda S.A.

12

Valuation

Historical Valuation Multiples versus Gross Profit

Historical Valuation Multiples versus Revenue Growth Rate

11x 13x 28x 30x

39.0%

17.6%

33.6%

38.2%

0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

0x

5x

10x

15x

20x

25x

30x

35x

LTM

GP%

EBIT

DA(x

)

EBITDA(x) LTM GP%

11x 13x 28x 30x

8.9%

(4.9%)

-

29.2%

-10%

-5%

0%

5%

10%

15%

20%

25%

30%

35%

0x

5x

10x

15x

20x

25x

30x

35x

LTM

RG

R%

EBIT

DA(x

)

EBITDA(x) LTM RGR%

13

Recent Transactions

Date Target Buyer / Investor

Total Transaction

Value Target

Revenue TEV /

Revenue TEV /

EBITDA

21Jan19 M2M Solutions S.A. Telsinc Prestacao De Servicos Para Sistemas De Informatica E Comunicacao De Dados Ltda.

11.14 - - -

19Jan19 Worldsense Holdings, Ltd. Loggi Tecnologia LTDA - - - -

17Jan19 Avanxo Colombia Globant S.A. 48.56 - - -

27Dec18 Centercom Global, S.A. de C.V Surge Holdings, Inc. - - - -

24Dec18 Empresa 1 - Sistemas De Automacao E Comercio Ltda. Volaris Group Inc. - - - -

13Dec18 Softbox Sistemas de Informacao Ltda Magazine Luiza S.A. - - - -

9May18 R.J. Participações S.A. Bematech SA - - - -

16Oct18 Avacon Tecnologia da Informação Ltda. Praxio - - - -

4Oct18 Softvision, LLC Cognizant Technology Solutions Corporation - - - -

10Sep18 Machinalis S.r.l MercadoLibre, Inc. - - - -

12Jul18 Global Mind S.A. Dentsu Aegis Network Ltd. - 382.10 - -

22May18 Ability Data Services SA Gigas Hosting, S.A. 3.10 1.87 1.7x -

25Apr18 Affero Lab Bertelsmann SE & Co. KGaA - - - -

19Feb18 Isban Brasil S.A. Banco Santander (Brasil) S.A. 18.80 - - -

19Feb18 Produban Serviços de Informática S.A. Banco Santander (Brasil) S.A. 12.21 - - -

12Jan18 Defenda Consultoria Em Seguranca Da Informacao Ltda Service IT - 0.78 - -

29Dec17 Velocity Partners, LLC Endava Limited (nka:Endava plc) 60.50 34.68 - -

4Dec17 Prodama Ltda Senior Sistemas S.A. - - - -

8Aug17 Concrete Solutions Ltda. Accenture plc - - - -

1Jun17 PointSource, LLC Globant S.A. 28.00 - - -

17Apr17 Jetpdv Soluções Ltda Viasoft Informatica Ltda. - - - -

14Nov16 Difier S.A. Globant S.A. 0.03 - - -

3Apr17 Premier IT Global Services Ltda. Quality Software S.A. 9.95 - - -

25Jan17 InfoSERVER S.A. Wipro Limited 8.71 - - -

1Nov16 Wdev Soluções em Tecnologia S.A. Ebix, Inc. 26.20 11.00 2.4x -

15Dec16 CredibiliT Tecnologia Ltda Claranet Limited - 8.84 - -

31Aug16 ADEXUS S.A. Graña y Montero S.A.A. 4.06 - - -

24Oct16 SPEKTRUM Consultoria e Sistemas Ltda. BCI Consulting S.R.L. - - - -

14

APPENDIX:

Public Basket

Constituents

7 Mile Advisors appreciates the opportunity to present this confidential information to the Company. This document is meant to be delivered only inconjunction with a verbal presentation, and is not authorized for distribution. Please see the Confidentiality Notice & Disclaimer at the end of the document. Alldata cited in this document was believed to be accurate at the time of authorship and came from publicly available sources. Neither 7 Mile Advisors nor 7MSecurities make warranties or representations as to the accuracy or completeness of third-party data contained herein. This document should be treated asconfidential and for the use of the intended recipient only. Please notify 7 Mile Advisors if it was distributed in error.

Outsourcing in South AmericaFebruary 2019

15

Public Basket

Endava plc

Endava plc provides technology services for clients in theconsumer products, healthcare, logistics, and retail verticals inEurope, Latin America, and the United States. It offers strategy,creative and user experience, insights through data, mobile andInternet of Things, architecture, smart automation, softwareengineering, test automation and engineering, continuousdelivery, cloud, applications management, and smart deskservices across the digital evolution, agile transformation, andautomation solution areas. The company was founded in 2000and is headquartered in London, United Kingdom.

Date Key Development Headline6/29/18 Endava Seeks Acquisitions

0x

2x

4x

6x

8x

10x

Revenue Multiples - Endava plc

TEV/Revenue Average

0x

10x

20x

30x

40x

50xEBITDA Multiples - Endava plc

TEV/EBITDA Average

0x

20x

40x

60x

80x

P/E Multiples - Endava plc

P/E Average

16

Public Basket

Sonda S.A.

Sonda S.A., together with its subsidiaries, provides informationtechnology (IT) solutions in Latin America, Chile, Brazil, Mexico,Argentina, Colombia, Costa Rica, Ecuador, Panama, Peru, andUruguayThe IT Services business provides IT outsourcing,system projects and integration, managed device, infrastructuresupport, datacenter and cloud computing, consulting andprofessional, SONDA Utility, and BPO services. The SoftwareApplications business offers application services, such asapplication management, implementation and consultancy,functional support, application outsourcing, and technicalsupport services; cross market solutions comprising financialmanagement and accounting, customer management and care,asset management, business intelligence, content management,process management, financial control, logistical control, andforeign trade management tools; and tax and accountingmanagement, financial and logistical control, and foreign tradesolutions, as well as various application services for financialsocial security, building, manufacture, retail services, basicservices, mining, energy, natural resources, government, publicinstitutions, transportation, and health sectors. Sonda S.A. wasfounded in 1974 and is headquartered in Santiago, Chile.

Date Key Development Headline1/21/19 Sonda S.A. (SNSE:SONDA) acquired M2M Solutions S.A. on for

BRL 42 million.

7/11/18 An unknown buyer acquired an unknown stake in Sonda S.A. (SNSE:SONDA) from Emilio Santelices.

0.0x

0.5x

1.0x

1.5x

2.0xRevenue Multiples - Sonda S.A.

TEV/Revenue Average

0x

5x

10x

15x

20xEBITDA Multiples - Sonda S.A.

TEV/EBITDA Average

0x

20x

40x

60x

80x

P/E Multiples - Sonda S.A.

P/E Average

17

Public Basket

Globant S.A.

Globant S.A., a technology services company, provides servicesrelated to application development, testing, infrastructuremanagement, and application maintenance worldwide. Thecompany offers machine learning, pattern recognition, naturallanguage understanding, future of organizations, customerinsight, behavioral change, product innovation, design thinking,product management discovery and delivery, and productcoaching services. It also provides process appraisal,automated, process evolution, delivery management, agileconsultancy, management consulting, user experience, visualand service, industrial design, mobile engineering, fastprototyping, and mobile and product strategy services. Inaddition, the company offers game engineering andexperience, digital platform, virtual and augmented reality,graphics engineering, 3D and 2D art, e-Sports, dataarchitecture, data science, distributed platform, data integration,data visualization, and blockchain services. Globant S.A. wasfounded in 2003 and is based in Luxembourg City,Luxembourg.

Date Key Development Headline1/17/19 Globant S.A. (NYSE:GLOB) entered into a binding agreement to

acquire Avanxo Colombia for $48.6 million.

2/15/18 Globant Mulls Acquisitions

0x

2x

4x

6x

8xRevenue Multiples - Globant S.A.

TEV/Revenue Average

0x

10x

20x

30x

40x

50xEBITDA Multiples - Globant S.A.

TEV/EBITDA Average

0x

20x

40x

60x

80xP/E Multiples - Globant S.A.

P/E Average

18

Public Basket

Cognizant Technology Solutions Corporation

Cognizant Technology Solutions Corporation, a professionalservices company, provides consulting and technology, andoutsourcing services worldwide. The company operatesthrough four segments: Financial Services; Healthcare; Productsand Resources; and Communications, Media and Technology. Itoffers business, process, operations, and technology consultingservices; application design and development, and systemsintegration services; application testing, consulting, andengineering services; and enterprise information managementservices. The company was founded in 1994 and isheadquartered in Teaneck, New Jersey.

Date Key Development Headline1/22/19 Cognizant Technology Solutions Corporation (NasdaqGS:CTSH)

agreed to acquire Oy Samlink AB from Posti Group Oyj, AktiaBank p.l.c. (HLSE:AKTIA), Oma Säästöpankki Oyj (HLSE:OMASP), Savings Bank Group, Svenska Handelsbanken AB (publ), Asset Management Arm, POP Pankkiliitto osk and other minority shareholders.

12/10/18 Cognizant Technology Solutions Corporation (NasdaqGS:CTSH) agreed to acquire Mustache LLC.

12/4/18 Cognizant Technology Intends To Seek Acquisitions

10/3/18 Cognizant Technology Solutions Corporation (NasdaqGS:CTSH) entered into a definitive agreement to acquire Softvision, LLC from Tower Arch Capital.

9/17/18 Cognizant Technology Solutions Corporation (NasdaqGS:CTSH) entered into agreement to acquire Advanced Technology Group, Inc.

0x

2x

4x

6xRevenue Multiples - Cognizant Technology

Solutions Corporation

TEV/Revenue Average

0x

10x

20x

30xEBITDA Multiples - Cognizant Technology

Solutions Corporation

TEV/EBITDA Average

0x

10x

20x

30x

40x

50xP/E Multiples - Cognizant Technology

Solutions Corporation

P/E Average

19

7MA provides Investment Banking & Advisory Services to the Business Services and Technology Industries globally. We advise on M&A and

private capital transactions and provide market assessments and benchmarking. As a close-knit team with a long history together and a laser

focus on our target markets, we help our clients sell their companies, raise capital, grow through acquisitions, and evaluate new markets.

Securities offered through 7M Securities LLC.

CONTACT INFO

Leroy Davis, Partner 704.899.5962 leroy@7mileadvisors.com

Tripp Davis, Partner 704.899.5762 tripp@7mileadvisors.com

Andy Johnston, Partner 704.899.5961 andy@7mileadvisors.com

Ben Lunka, Managing Director 704.496.2995 ben@7mileadvisors.com

Jeff Stoecklein, Managing Director 312.796.9330 jeff@7mileadvisors.com

Mark Landry, Managing Director 561.972.0609 mark@7mileadvisors.com

Kristina Sergueeva, Director 704.899.5149 kristina@7mileadvisors.com

Neil Churman, Director 281.742.9340 neil@7mileadvisors.com

John Cooper, Director 704.973.3996 john@7mileadvisors.com

Tim Frye, Director 704.973.3994 tim@7mileadvisors.com

Nicholas Prendergast, Financial Analyst 704.973.3995 nicholas@7mileadvisors.com

Ariail Siggins, Marketing Director 704.981.2908 ariail@7mileadvisors.com

Sydney Larese, Associate 704.973.3998 sydney@7mileadvisors.com

Marty Johnson, Associate 704.973.3999 marty@7mileadvisors.com

Rory Julyan, Associate 704.981.2520 rory@7mileadvisors.com

Garth Martin, Associate 704.973.3997 garth.martin@7mileadvisors.com

Dennis Fox, Associate 704.706.9168 x 119 dennis@7mileadvisors.com

Steve Buffington, Associate 704.960.1828 steve@7mileadvisors.com