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Confidential

TMT Investment Banking

eCommerce Market Update

July 2013

2Confidential

Headwaters TMT Investment Banking: Strong 2013 MomentumH

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Financial Advisor tothe Seller

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Avail / RichRelevance: Cross-border M&A in eCommerce Infrastructure

Cooking.com / Target Corporation: Top retailer acquiring in Specialized eCommerce focused on home and cookware vertical with hybrid content story

Payvment / Intuit: Social commerce and marketing related transaction

Headwaters’ technology, media, and telecom (“TMT”) eCommerce practice has recently completed strategic transactions across the ecosystem:

May 2013 March 2013 January 2013

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M&A Activity – M&A activity in 2Q 2013 is stronger than that of 1Q 2013, although deal volume is still below 2Q 2012 and 2Q 2011 levels. 2Q 2013 deal value was helped by SAP’s $1.1B acquisition of hybris.

Investment Activity – Investment volume increased by 35% from 1Q to 2Q 2013 after 3 straight quarters of volume decline. 2Q saw several Asian strategics (Alibaba.com, Tencent, and Itochu) making significant investments into US-based firms.

Trading Multiples – Internet Retailers (Web Only) on the whole trade at a median of 1.6x LTM revenue. Marketplaces command the greatest premium, trading at a median of 9.0x LTM revenue. Specific vertical market focus also trading at higher levels.

Capital Markets – Specialized eCommerce companies have generally outperformed the market. European Retailers with Online Presence continue to underperform on the whole.

eCommerce Market Update

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eCommerce M&A Volume Trending Slightly Down

_______Source: 451 Group; includes announced transactions with disclosed, estimated, undisclosed transaction valuesTop 3 acquisitions with disclosed transaction values greater than $50M

Top 3 Acquisitions by Quarter ($M) – Target / Acquirer

1Q11 2Q11 3Q11 4Q11 1Q12 2Q12 3Q12 4Q12 1Q13 2Q13

GSI Commerce / eBay

($2,400)

Primedia / TPG

($316)

Zong / eBay

($240)

Kobo / Rakuten($315)

Bol.com / Ahold($465)

Getty Images / Carlyle Group

($3,300)

KAYAK.com / Priceline($1,800)

Channel Intel. / Google($125)

Hybris / SAP

($1,100)

AutoTrader.ca / Apax

($745)

Qunar.com /Baidu($306)

OPENLANE / KAR Auction

($210)

Wiggle / Bridgepoint

($281)

Redbaby /Suning($66)

Trivago /Expedia($632)

Market Leader / Trulia($355)

Opodo / Permira Funds

($611)

GittiGidiyor / eBay

($235)

Plimus / Great Hill

($115)

Wer Liefert / Paragon Partners

($103)

ConceptWave / Ericsson

($56)

Litle & Co. / Vantiv($361)

Society6 / Demand Media

($94)

54

47

64

34

44 47

49 51

33

39

$5.66

$1.51

$0.65 $0.77$0.48 $0.05

$3.49 $3.36

$0.13

$1.62

0

10

20

30

40

50

60

70

$0.00

$1.00

$2.00

$3.00

$4.00

$5.00

$6.00

1Q 2011 2Q 2011 3Q 2011 4Q 2011 1Q 2012 2Q 2012 3Q 2012 4Q 2012 1Q 2013 2Q 2013

# Deals$ in billions Deal Volume Deal Value ($B)

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Top Acquirers in eCommerce Market

Buyer # Acquisitions Total Value ($M) Targets

eBay 8 2,875 bill safe, GittiGidiyor.com, GSI Commerce, Hunch, Magento, Svpply, WHI Solutions, Zong

Rakuten 8 354 ADS eCommerce Logistics, Ikeda, Kenko.com, Kobo, Play.com, Tradoria, Webgistix, Wuaki.tv

LivingSocial 5 NA Ensogo.com, GoNabit, Lets Bonus, ONOSYS, TicketMonster

SKYE Associates 4 NA Fantasy Jewelry Box, The Hip Chick, PinkMascara.com, SimplySoles.com

Google 3 125 Android.me, Channel Intelligence, Cuil

TripAdvisor 3 NA CruiseWise (assets), Jetsetter, Niumba.com

Top Acquirers by Volume, 2011 – Present

_______Source: 451 Group through 06/30/13; includes transactions with disclosed, estimated, undisclosed values

Buyer Total Value ($M) Targets

The Carlyle Group 3,300 Getty Images

eBay 2,875 bill safe, GittiGidiyor.com, GSI Commerce, Hunch, Magento, Svpply, WHI Solutions, Zong

Priceline 1,800 KAYAK.com

SAP 1,100 hybris

Apax Partners 745 Autotrader.ca

Expedia 632 Trivago

Permira Funds 611 Opodo

Michael Rubin / Kynetic 498 Rue La La, ShopRunner

Ahold 465 Bol.com

Walgreen 429 Drugstore.com

Top Acquirers by Total Transaction Value – Greater than $400M, 2011 – Present

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eCommerce M&A Case Study

On June 5, 2013

Salesforce

ACQUIRED

Transaction Overview:• $1.1 billion acquisition of hybris by SAP• hybris had LTM revenue of $125 million with a 3-year revenue CAGR of 70%• Implied LTM revenue multiple is 8.8x• Deal comes after a $30M fundraising round in March for hybris• At 600 employees, consideration per employee is $1.8 million

Target Description• SaaS based eCommerce management software that provides product data

management, merchandising, search engine optimization, customer support management, marketing materials publishing and order management.

Transaction Commentary:• SAP will integrate hybris’s eCommerce management software into its SAP

HANA® platform, analytical and cloud applications, and SAP Jam social platform

• According to the acquirer press release, the acquisition will allow SAP “to deliver the next-generation eCommerce platform, with the choice of on-premise or cloud deployment, as enterprises around the world seek to optimize the customer experience for businesses and consumers across an ever-growing number of delivery channels, devices and touch points”

_______Source: Acquirer Press Release, 451 Group

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eCommerce Investment Volume Remains Steady

Top 3 Investments by Quarter ($M)

1Q11 2Q11 3Q11 4Q11 1Q12 2Q12 3Q12 4Q12 1Q13 2Q13

360buy.com($500)

360buy.com($1,500)

Airbnb($117)

LivingSocial($176)

Flipkart India($150)

Fanatics($150)

Flipkart India($150)

360buy.com($300)

360buy.com($700)

Fanatics($170)

Privalia($123)

LivingSocial($400)

Ozon Holdings($100)

Klarna($155)

Despegar.com($93)

Fotolia($150)

Delivery Hero($50)

Fab($120)

LivingSocial($110)

Fab($150)

Stella & Dot($37)

Wayfair($165)

Xiu.com($100)

Living Social($143)

Airbnb($70)

Lemon Tree($119)

Lazada($50)

Zulily($85)

Attivio($42)

Lamoda($130)

_______Source: PitchBook; includes announced transactions with disclosed, estimated, undisclosed transaction valuesTop 3 investments with disclosed investment values

81

98

73

83

106

134

113

90

77

104

$941

$2,869

$774

$1,235

$726

$1,301

$889$982

$1,358 $1,280

0

20

40

60

80

100

120

140

160

$0

$500

$1,000

$1,500

$2,000

$2,500

$3,000

$3,500

1Q 2011 2Q 2011 3Q 2011 4Q 2011 1Q 2012 2Q 2012 3Q 2012 4Q 2012 1Q 2013 2Q 2013

# Investments$ in millions Investment Volume Investment Value ($M)

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Top Investors In eCommerce Market

_______Source: PitchBook through 06/30/13; number of investments may include follow-on investments in same target

Investor Investments Targets

Accel Partners 36

Baby.com.br, BaubleBar, BeachMint, Bonobos, Comuto, Elo7, Endorse, eTree, Etsy, Exclusively.In,Flipkart India, HMS Infotech, Hotel Tonight, Loose Cubes, Lot18, Lyst, Modcloth, One Jackson,Ostrovok.ru, Privat Trade, Project J, Shopmium, Stylefantasia, Travelmob, UberMedia, ZopNow

First Round Capital 32

AxialMarket, BlackJet, Chloe and Isabel, CustomMade Ventures, Fab, Grand Street, Hotel Tonight,Instacanvas, Jirafe, Liftopia Holding, Modcloth, One Kings Lane, Poppin, Storenvy, TaskRabbit,Threadflip, True&Co, Wanelo, Warby Parker

Index Ventures 27

1stdibs, Brit Media, Capitaine Train, CruiseWise, Etsy, farfetch.com, HouseTrip, Nasty Gal,Notonthehighstreet.com, Ozon Holdings, People Per Hour, Privalia, Rad, Shapeways, Stylefantasia,TrialPay, UberMedia

Tiger Global Management

23

360buy.com, Baby.com.br, CatchoftheDay.com.au, Despegar.com, eTree Marketing, Exclusively.In,Flipkart India, MotorExchange, One Kings Lane, Robemall Apparels, Trendyol.com, Warby Parker,Wego, Wikimart

Battery Ventures 21 ADKU, Continuuity, Duetto Research, GoEuro, Gogobot, Hotel Tonight, JOOR, Loose Cubes, Retail Relay, Send the Trend, TrialPay, Vaunte, Wayfair, Wikets

Kleiner Perkins Caufield & Byers

21 Choose Energy, everlane, Lockerz, Luvocracy, One Kings Lane, Plum District, Rent The Runway,Session M, Stipple, Storenvy, Trendyol.com, Xiu.com, Zaarly

General Catalyst 19Airbnb, BigCommerce, Brit Media, Chloe and Isabel, GoodData, Optaros, Ostrovok.ru, Plum District, Room 77, Swirl Networks, TVLX Viagens e Turismo, Warby Parker, Yplan

Andreessen Horowitz 18Airbnb, Continuuity, Fab, Fanatics, GoodData, Lyft, Shapeways, ShoeDazzle.com, Shoptiques,Threadflip, Wikets, Zulily

Greylock Partners 18ADKU, Betable, Citrus Lane, hybris Software, mySupermarket, Notonthehighstreet.com, One Kings Lane, RichRelevance, Shoptiques, Threadflip, TrialPay, Wantful

Top Investors by Volume – Eighteen or More Investments, 2011 – Present

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eCommerce Investment Case Study

On June 7, 2013

INVESTED IN

Transaction Overview:• $170 million investment in Fanatics by Alibaba.com and Temasek Holdings• The investment values the company at $3.1B• CEO Michael Rubin estimates the company will reach $1B in revenue this year

Target Description:• Provider of sports merchandise. The company operates more than 250 eCommerce

websites, and more than 60 eCommerce stores for collegiate and professional sports partners and media organizations.

Transaction Commentary:• According to the CEO, the money will help fund an oversees expansion and bolster

distribution. “We think there is huge potential in sports apparel and for fanatics to grow, we’ll be looking at Western Europe and Asia as places to move into.”

_______Sources: iResearch, PitchBook, TechCrunch, VentureBeat, WSJ*Other investors include Atomico, Andreessen Horowitz, Menlo Ventures, RTP, Pinnacle, and DoCoMo

On May 21, 2013

Among Others*

INVESTED IN

Transaction Overview:• $150 million investment in Fab by Tencent and Itochu, among others• The pre-money valuation is estimated to be $1B• The Company expects $250M in 2013 revenue, and is achieving 43% gross margins

Target Description:• Provider of an online retail site specializing in designer-influenced products, including

clothing, accessories, furniture, food and pet products

Transaction Commentary:• According to CEO Jason Goldberg, Fab will use the proceeds to enhance supply chain,

logistics, customer service, technology, and merchandising• The CEO also stated that Fab will work with Tencent to expand into China

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1.9x

3.1x

0.5x

1.1x

0.2x

0.8x

0.0x

2.0x

4.0x

LTM Revenue Multiple

0.6x

0.8x0.8x

2.2x

2.0x

0.5x

0.2x0.2x

0.6x

1.3x

0.9x

0.2x0.2x

0.5x

0.8x

0.1x

0.0x

1.0x

2.0x

3.0x


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U.S eCommerce Comparable Public Companies

U.S. Retailers with Online Presence*

Median:0.6x

Median:0.9x

U.S. Internet Retailers (Web Only)

_______Sources: Capital IQ as of 06/28/13, Internet Retailer 500; companies arranged by descending enterprise value*Top U.S. Retailers by websales volume, or greater than 33% of revenue in websales

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0.5x

0.3x

2.3x

0.4x

0.2x 0.1x

0.0x

1.0x

2.0x

3.0x


5.2x

2.5x

1.6x

2.4x

0.7x

0.0x

2.0x

4.0x

6.0x


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European eCommerce Comparable Public Companies

Median:0.4x

Median:2.4x

_______Sources: Capital IQ as of 06/28/13, Internet Retailer 500; companies arranged by descending enterprise value*Top European Retailers by websales volume, or greater than 33% revenue in websales

European Retailers with Online Presence*European Internet Retailers (Web Only)

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9.0x

4.3x

3.2x

11.6x

8.8x

9.8x10.0x

0.0x

2.0x

4.0x

6.0x

8.0x

10.0x

12.0x

14.0x


6.9x

1.8x

1.4x

2.0x2.3x

0.0x

2.0x

4.0x

6.0x

8.0x


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Specialized eCommerce Comparable Public Companies

Median:2.0x

Median:9.0x

_______Source: Capital IQ as of 06/28/13; companies arranged by descending enterprise value

TravelMarketplaces

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4.7x

7.7x

5.0x

9.0x

1.9x

2.7x

4.6x

6.3x

0.0x

2.0x

4.0x

6.0x

8.0x

10.0x


2.3x

3.5x4.2x

15.7x

0.7x0.2x

0.6x

0.0x

4.0x

8.0x

12.0x

16.0x


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eCommerce Enablement Comparable Public Companies

Median:2.3x

Median:4.9x

_______Source: Capital IQ as of 06/28/13; companies arranged by descending enterprise value

eCommerce InfrastructureeCommerce Services

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_______Source: Capital IQ as of 06/28/13; refer to public comps for constituentsLeading Internet Companies Index includes top internet companies by revenue as per Capital IQ: Amazon, Baidu, eBay, Expedia, Facebook, Google, Priceline, Rakuten, Tencent, and Yahoo!

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U.S, Eur. & Specialized eCommerce Capital Markets Performance

Since 2011, Travel (+72.1%) and Marketplaces (+71.4%) have outperformed European Internet Retailers (Web Only) (+64.9%), U.S. Internet Retailers (Web Only) (+50.2%), Leading Internet Companies (+40.0%), U.S. Retailers with Online Presence (+27.4%), the NASDAQ (+26.4%), the S&P 400 (+26.2%) and European Retailers with Online Presence (-17.1%)

Travel: +72.1%Marketplaces: +71.4%

U.S. Internet Retailers (Web Only): +50.2%Leading Internet Companies: +40.0%U.S. Retailers w/ Online Presence: +27.4%NASDAQ: +26.4%S&P 400: +26.2%

European Internet Retailers (Web Only): +64.9%

European Retailers w/ Online Presence: -17.1%

(60.0%)

(40.0%)

(20.0%)

0.0%

20.0%

40.0%

60.0%

80.0%

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eCommerce Enablement Capital Markets Performance

Since 2011, eCommerce Services (+29.5%) has underperformed compared to Leading Internet Companies (+40.0%), but outperformed the NASDAQ (+26.4%) and the S&P 400 (+26.2%). eCommerce Infrastructure (+18.7%) has underperformed Leading Internet Companies, the NASDAQ, and the S&P 400.

Leading Internet Companies: +40.0%

eCommerce Services: +29.5%

S&P 400: +26.2%

eCommerce Infrastructure: +18.7%

_______Source: Capital IQ as of 06/28/13; refer to public comps for constituentsLeading Internet Companies Index includes top internet companies by revenue as per Capital IQ: Amazon, Baidu, eBay, Expedia, Facebook, Google, Priceline, Rakuten, Tencent, and Yahoo!

NASDAQ: +26.4%

(30.0%)

(20.0%)

(10.0%)

0.0%

10.0%

20.0%

30.0%

40.0%

50.0%

16Confidential

We are best in class bankers, technologists, and strategists

Relevant transaction expertise

- Completed transactions with many strategic acquirers, targets, and investors in eCommerce

Strong relationships with key, relevant strategic parties

- Sector focus and industry experience means we are in frequent communication with likely interested targets

Direct market coverage gives us unique insights regarding:

- Acquisition targets - IP / value chain

- Competitive and adjacent market activity - Growth markets

Highly customized process to fit specific dynamic context

- One size fits all auction processes not the best in eCommerce

- We will run a focused, intelligent process with proper target screening tailored to specific areas of interest to achieve most ideal valuation for buyer

We think “outside the box” – complex situations require creative solutions

Headwaters Is Your Premier ChoiceH

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INVESTMENT BANK OF THE YEAR

2012 TMT DEAL OF THE YEAR <$100M

2012 INTERNATIONAL DEAL OF THE YEAR

INVESTMENT BANK OF THE YEAR

HAS BEEN ACQUIREDBY


HAS BEEN ACQUIREDBY


Tickets.com

IPO$95,500,000

Lead Manager



HAS DIVESTED SPECIFIC ASSETS TO




Solid Information Technology Ltd., Inc.



HAS ACQUIRED

$120,000,000

Fairness Opinion tothe Buyer

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CO

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US

Contact

www.headwatersmb.com

Gary MoonManaging Director

Head of Technology, Media & Telecom

Investment Banking

Office: (415) 766-3862

Cell: (650) 515-8734

[email protected]

135 Main St

Suite 800

San Francisco, CA 94105

Sun Jen YungManaging Director

Head of Digital Media & Internet

Investment Banking

Office: (203) 992-1667

Cell: (917) 297-8716

[email protected]

41 West Putnam Ave

1st Floor

Greenwich, CT 06830

Kuni TakahashiDirector

Technology, Media & Telecom

Investment Banking

Office: (415) 766-3864

Cell: (650) 465-7824

[email protected]

135 Main St

Suite 800

San Francisco, CA 94105

Confidential 18

Appendix:2Q 2013 eCommercePrecedent M&A Transactions

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2Q 2013 Precedent M&A TransactionsA

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IX

Date Target Target Description Acquirer(s)Enterprise

Value ($M)

EV /LTM

Revenue

EV /LTM

EBITDA

06/26/13 GigablastOperates an Internet search engine using results from its own index through www.gigablast.com.

Yippy, Inc. [fka Cinnabar Ventures, Inc.]

-- -- --

06/24/13 Society6 LLCProvides an online art retail marketplace where artists upload their art to be purchased by consumers.

Demand Media, Inc. [NYSE: DMD]

94.0 6.3x --

06/11/13CableOrganizer .com

Operates as an online retailer of cable, wire and related accessories for businesses and consumers in the US through www.cableorganizer.com.

CapitalSouth Partners/KT Capital Partners

-- -- --

06/05/13Webgistix Corporation

Provides e-commerce order fulfillment software as a service (SaaS) for online retailers globally.

Rakuten, Inc. -- -- --

06/05/13hybris GmbH [Huntsman Gay Global Capital]

Provides e-commerce management software and software as a service (SaaS) for businesses globally.

SAP AG 1,100.0 8.8x --

06/05/13EVS Online Auctions

Provides an online auction service for the sale of commercial trucks, construction vehicles and cars for businesses and consumers in the UK through www.evsonlineauctions.com.

Manheim -- -- --

06/03/13 OrderDynamicsProvides e-commerce management software as a service (SaaS) for online retailers.

eCommera Limited -- -- --

06/03/13Freedom Travel Group Ltd., The [dba Planet Cruise]

Provides online cruise reservations services for consumers in the UK through www.planetcruise.com. Also produces a related live TV show.

Iglu.com Ltd. -- -- --

05/31/13 Shopo.inOperates an online retailer of handmade apparel, jewelry, fashion and home accessories, beauty products and stationery for consumers in India through www.shopo.in.

Snapdeal.com -- -- --

05/30/13BigCeramicStore .com

Operates as an online retailer of ceramics crafting materials, including kilns, glazes, pottery wheels and tools, for consumers in the US through www.bigceramicstore.com.

Vertana Group LLC -- -- --

EV ($M)EV/LTM Revenue

EV/LTM EBITDA

High $1,100.0 8.8x --

Mean 200.3 5.6x --

Median 34.9 6.8x --

Low 1.2 0.1x --

_______Source: 451 Group

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Value ($M)

EV /LTM

Revenue

EV /LTM

EBITDA

05/28/13 WebcollageProvides e-commerce catalog management software as a service (SaaS) that enables consumer goods manufacturers to publish product documents, videos and images on retailer websites.

Answers Corporation

-- -- --

05/24/13 Fab Shoes, TheOperates as a membership-based online footwear retailer for female consumers in France and Spain. Websites offer personalized recommendations based on answers given by users.

JustFabulous [dba JustFab.com]

-- -- --

05/23/13 Bluefly, Inc.Operates as an online retailer of clothing, shoes, jewelry and accessories for consumers in the US through www.bluefly.com and www.belleandclive.com.

Clearlake Capital Group

3.0 -- --

05/22/13GoLocal Inc. [dba Giftly]

Operates as an online retailer of prepaid gift cards for consumers through www.giftly.com. Gift cards can be distributed via email, social networks, text message or an iOS smart phone application.

GiftCards.com LLC -- -- --

05/22/13 Xatori, Inc.Provides a search engine that enables electric vehicle owners in the US to locate charging stations.

Recargo, Inc. -- -- --

05/13/13 OHKIOperates as an online retailer of consumers electronics and home appliances for consumers in Australia through www.ohki.com.au.

Adeffective Ltd. -- -- --

05/13/13Avail Intelligence Software

Provides product recommendation software as a service (SaaS) for online retailers in Europe.

RichRelevance, Inc. -- -- --

05/09/13Subscription Bridge

Provides customer billing software as a service (SaaS) that enables businesses to create and manage subscription packages.

Cloud Nation -- -- --

05/09/13 MileWiseProvides an online flight and hotel reservation search and comparison service that enables consumers to determine whether to use cash, points or frequent-flyer miles when traveling.

Yahoo! Inc. -- -- --

05/08/13Market Leader, Inc.

Provides lead generation software as a service (SaaS) for the real estate sector in North America.

Trulia, Inc. [NYSE:TRLA]

332.8 7.4x --


EV/LTM EBITDA

High $1,100.0 8.8x --

Mean 200.3 5.6x --

Median 34.9 6.8x --

Low 1.2 0.1x --


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Value ($M)

EV /LTM

Revenue

EV /LTM

EBITDA

05/08/13 OrderMotion, Inc.Provides e-commerce order and fulfillment management software as a service (SaaS) for online retailers.

NetSuite Inc -- -- --

05/07/13 Niumba.comProvides a searchable vacation housing rental classified ads website for consumers globally www.niumba.com.

TripAdvisor, Inc. [NASDAQ: TRIP]

-- -- --

05/03/13Sport Professional Schmid (assets)

Assets of Schmid Profi, which operates as an online retailer of sports and fitness clothing, shoes and accessories for consumers in Europe through www.sportsprofi.de.

SmartGuy Group A/S

1.4 0.1x --

05/02/13Webswappers Ltd, [dba Swapit]

Provides an online auction service that enables youths in the UK to trade in and purchase a variety of items using virtual currency through www.swapit.co.uk.

Box of Awesome -- -- --

05/02/13CruiseWise (technology and talent assets)

Technology and talent assets of CruiseWise, which provides an online travel reservations service that enables consumers in the US to book cruise trips globally.


-- -- --

04/24/13February Won, Inc. (assets)

The assets of Ecomom.com, which provides an online retail site focused on organic baby food and eco-friendly baby products to parents through www.ecomom.com.

etailz Inc [dba GreenCupboards]

-- -- --

04/24/13 GidsyProvides an online activity, event, workshop and tour reservations service for consumers globally. Website also provides a directory of events and enables users to rate and review events.

GetYourGuide Inc. -- -- --

04/23/13 linkchic.comOperates as an online retailer of shoes, apparel and accessories for consumers in China through linkchic.com. Also provides related fashion reference content.

Modern Media Co., Ltd. [aka Modern Media Holdings]

1.2 -- --

04/23/13 reuseit.comOperates as an online retailer of reusable bags, bottles and household products for consumers in the US through www.reuseit.com.

Plow & Hearth -- -- --

04/22/13Webhallen Svierge AB

Operates as an online retailer of computers, software, consumer electronics, video games, movies and home appliances for consumers in Sweden through www.webhallen.com.

Komplett ASA 21.5 -- --


EV/LTM EBITDA

High $1,100.0 8.8x --

Mean 200.3 5.6x --

Median 34.9 6.8x --

Low 1.2 0.1x --


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Value ($M)

EV /LTM

Revenue

EV /LTM

EBITDA

04/18/13Innovative Automation Inc.

Provides warehouse and inventory management and product order fulfillment software for businesses.

SI Systems, Inc. -- -- --

04/17/13Tripology [Rand McNally [Patriarch Partners]]

Provides a vacation package reservations website that enables consumers to receive proposals from travel agents by answering online questions through www.tripology.com.

USA TODAY Travel Media Group

-- -- --

04/16/13Onscope Group, The (trademark business)

The trademark business of The Onscope Group, which provides online trademark search and reporting services and research content for businesses in Canada. Also provides content in printed format.

Thomson CompuMark

-- -- --

04/15/13Early Impact Inc (ProductCart assets)

Early Impact's ProductCart assets, which provide e-commerce shopping card software for online retailers.

NetSource Technologies

-- -- --

04/11/13 hoopos.comOperates as an online retailer of baby and children’s clothing, toys, books, DVDs and party favors for consumers in India through www.hoopos.com.

babyoye -- -- --

04/11/13HostelBookers .com

Provides an online service that enables consumers globally to search for and reserve budget hostel and hotel rooms, apartments, guesthouses and campsites. Website enables users to rate establishments.

Web Reservations International, Ltd.

-- -- --

04/09/13 JetsetterProvides a membership-based online service that enables users to obtain discounts on hotel and resort reservations and travel packages. Also provides related online travel reference content.


-- -- --

04/08/13 Werkspot.nlOperates a searchable classified ads website that enables consumers in the Netherlands to post home improvement projects and receive quotes from contractors through www.werkspot.nl.

HomeAdvisor [fka ServiceMagic Inc.] [IAC]

-- -- --

04/01/13 SGCM Pte. Ltd.Provides a searchable classified ads website that lists new and used vehicles for sale for consumers in the Singapore through www.sgcarmart.com.

Singapore Press Holdings Limited

48.3 -- --


EV/LTM EBITDA

High $1,100.0 8.8x --

Mean 200.3 5.6x --

Median 34.9 6.8x --

Low 1.2 0.1x --


Confidential 23

Appendix:2Q 2013 eCommercePrecedent Investments

Confidential 24

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2Q 2013 Precedent Investments, $5M+

_______Source: PitchBook

Date Target Target Description Investor(s) Deal TypeDeal Size

($M)

Company Valuation

($M)

06/26/13Revel Systems

Provider of cloud-based POS systems for the restaurant and retail industries. The company's iOS-based software includes integrated payroll, inventory tracking, CRM and more.

Individual Investor Series B 10.1 --

06/25/13 Brit MediaProvider of lifestyle services. The company provide an online platform and eCommerce that inspires and enables the digital generation.

Cowboy, Index, Individual Investor, Lerer, OIP

Series A 6.3 --

06/24/13 WegoDeveloper of global travel search engine. The company provides tools that help travellers research trips, compare prices and book travel online.

Crescent Point Group, Tiger Global, Victoria

Series C 17.0 --

06/19/13 LazadaCompany sells products such as books, electronics, phones & accessories, computers, home & living, hardware, home appliances, toys, kids & babies, travel and luggage, beauty, jewelry, fashion and sports.

Holtzbrinck, Summit, Tengelmann, Verlinvest

Early Stage VC

100.0 --

06/17/13Jumia Nigeria

Provider of online Nigerian shopping platform. The company operates an eCommerce site offering an array of products, including fashion clothing, mobile phones, computers and other electronics.

Millicom International CellularEarly Stage VC

35.0 --

06/13/13 ThumbtackProvider of a marketplace and review site for local services. The company hosts 200,000 small businesses and independent professionals skills.

Javelin Venture Partners, MHS, Sequoia

Series B 12.5 --

06/12/13 GoodDataProvider of business intelligence software and reporting tools to help companies monetize big data. The company's services includes operational dashboards, advanced reporting and data warehousing.

Andreessen Horowitz, GeneralCatalyst, NWC, Tenaya, TOTVS

Series D 22.0 --

06/11/13 LamodaOperator of an online retail store. The company provides a range of products including apparel, shoes, accessories and beauty.

Access Industries, Summit Partners, Tengelmann

Later Stage VC

130.0 --

06/11/13Custom Made Ventures

Provider of an online resource and marketplace that connects artisans with buyers of custom-built furniture and woodcrafts. The company also features commercial furnishings gallery.

Atlas, FR, Google, LaunchCapital, NextView, Schooner

Later Stage VC

18.0 --

06/07/13 FanaticsProvider of sports merchandise. The company operates more than 250 eCommerce websites, and more than 60 eCommerce stores for collegiate and professional sports partners and media organizations.

Alibaba Group, Temasek Holdings

Later Stage VC

170.0 3,100.0

Deal Size ($M)

Company Valuation

($M)

High $170.0 $3,100.0

Mean 32.5 885.8

Median 12.0 275.0

Low 5.0 26.3

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($M)

Company Valuation

($M)

06/06/13 ShopgateProvider of a mobile shopping application for mail-order and retail businesses. The company provides single-click, mobile shopping services for smartphones and tablets.

Creathor Venture, NorthCap Partners

Series B 7.0 --

06/06/13 Paddle8Provider of an online auction house, offering artworks by international artists in themed and benefit auctions. Provides online auction house that connects buyers and sellers of fine art and collectibles.

Founder Collective, Mousse, RCM

Series B 6.0 --

06/05/13 Porch.comProvider of an Internet marketplace for home design and improvement. The company’s platform connects homeowners with home-service professionals.

SV AngelSeed Round

6.3 --

06/04/13 YPlanProvider of a mobile application for event booking. The company is the developer of an application enabling users to bring up a curated list of events, select, pay and go to the event on the same evening.

A Grade, General Catalyst, Octopus, Slow, Wellington

Series A 12.0 --

06/03/13 WorldStoresProvider of online retail products. The company is an online retailer of products for the home and garden.

AVP, Balderton, Serena Series C 16.0 --

05/30/13 Surf AirlinesOperator of a membership-based private airline. The company operates short-haul flights for members who pay a fixed monthly subscription fee. Members can fly as many times as they want in a month.

AVP, Base, Individual Investor, NEA, Velos

Series B 7.0 27.4

05/29/13 BeautylishDeveloper of social commerce website for the cosmetics industry. The company provides online beauty network.

CMEA CapitalEarly Stage VC

6.5 --

05/23/13 LyftProvider of an on-demand ride-sharing service. The company provides a marketplace for drivers to sell empty seats in their car by matching them with passengers traveling along the same route.

Andreessen Horowitz Series C 60.0 275.0

05/22/13Jade eServices

Provider of an online fashion retail store. The company offers apparels, accessories, shoes, beauty, sportswear available for men, women and kids.

IABK, Rocket Internet, Summit, Tengelmann, Verlinvest

Early Stage VC

100.0 --

05/21/13 FabProvider of an online retail site specializing in designer-influenced products, including clothing, accessories, furniture, food and pet products.

Andreessen Horowitz, Atomico, DoCoMo, Itochu, Menlo, Pinnacle, RTP, Tencent

Series D 150.0 1,000.0

Deal Size ($M)

Company Valuation

($M)

High $170.0 $3,100.0

Mean 32.5 885.8

Median 12.0 275.0

Low 5.0 26.3

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($M)

Company Valuation

($M)

05/19/13 ReebonzProvider of an online shopping platform. The company provides online sales for short period of time that are open to members only.

GGV Capital, Infocomm, Matrix, MediaCorp, Vertex

Series A 40.0 --

05/16/13 LuvocracyCreator of an online marketplace and social platform. The company is the creator of a platform enabling users to purchase merchandise that has been recommended through social media outlets.

AngelPad, CrunchFund, Google, KPCB, RPM, XG

Early Stage VC

11.5 --

05/15/13 PrivaliaProvider of online private sales club facilities. The company organises the sale of leading name products at exceptional prices exclusively for club members.

General Atlantic, HCP, Index, IVP, La Caixa, Nauta Capital, Sofina

Later Stage VC

33.2 --

05/15/13Rock In Fashions

Provider of an online store offering international clothing. The company's retail platform provides an eCommerce site for apparel and accessories.

-- Series B 5.0 --

05/13/13Namshi General Trading

Provider of online shopping portal. The company offers a selection of apparel, footwear and accessories for men, women and children.

Summit Partners Early Stage VC

14.0 --

05/07/13CircleUp Network

Provider of an online social marketplace that supports equity investments from individual investors to small private consumer and retail companies.

Google, Maveron, Rose Park Advisors, Union Square

Series A 7.5 --

05/06/13 Project JProvider of an online shopping site that makes short videos to highlight products. The company is helping users discover goods via short-form videos.

Accel Partners, HMC, InterWest, Time Warner

Series B 11.5 --

05/06/13 MerchantryProvider of automation and integration solutions to suppliers, merchants and marketplaces. The company offers multichannel solutions that address various eCommerce scenarios.

e.ventures, Greycroft, Kite Series B 7.0 --

05/02/13 PoppinProvider of a website for buying office products. The company sells office products including paper products, pens/pencils, desktop accessories and furniture.

First Round Capital, Individual Investor, Shasta, TrilogyGrowth

Series B 11.1 --

04/30/13 Ruby RibbonProvider of a fashion commerce platform that leverages social technology and direct-sale tactics.

Mohr Davidow Ventures, Trinity Ventures

Series B 8.6 26.3

Deal Size ($M)

Company Valuation

($M)

High $170.0 $3,100.0

Mean 32.5 885.8

Median 12.0 275.0

Low 5.0 26.3

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($M)

Company Valuation

($M)

04/23/13 ShapewaysProvider of 3D printing services and community marketplace for 3D printed products.

Andreessen Horowitz, Index Ventures, Lux, Union Square

Series C 30.0 --

04/22/13 ATG MediaProvider of online auction information and services to the fine art and antiques industry. The company offers auction information and services through online and newspapers.

Mobeus Equity PartnersPE Growth/ Expansion

7.2 --

4/12/2013 Retail RelayProvider of online grocery shopping and delivery services. The company also provides grocery from grocery stores, eclectic restaurants and local farms through its website.

Battery Ventures, QIM, TomorrowVentures

Later Stage VC

8.3 --

4/4/2013Acumen Brands

The company maintains multiple online stores with categories that include work clothes, wedding apparel, personal protective equipment, baby gear, shoes, bedding and outdoor gear.

ARCM Fund, BLH, Dillard's, General Atlantic, Gravity, NMP

Early Stage VC

83.2 --

4/2/2013Collective Bias

Provider of a platform for social media shopping services. The company is a social media company that drives retail sales through the coordinated creation of social media stories.

Updata Partners Series A 10.5 --

4/1/2013Aquamarine HealthCare Private

Provider of an online health store. The company website hosts nutrition products, testing devices, food and footwear for diabetics, home devices for blood pressure, and other health related items.

Intel Capital, Sequoia Capital India

Series B 14.0 --

4/1/2013Trendsutra Platform Services

Provider of an online retail services. The company offers products in categories like furniture, home, lifestyle and fashion.

Norwest Venture Partners Series B 8.0 --

Deal Size ($M)

Company Valuation

($M)

High $170.0 $3,100.0

Mean 32.5 885.8

Median 12.0 275.0

Low 5.0 26.3

Confidential 28

Appendix:eCommercePublic Company Comparables

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U.S. eCommerce Comparable Public Companies

_______Sources: Capital IQ as of 06/28/13, Internet Retailer 500*Top U.S. Retailers by websales volume, or greater than 33% of revenue in websales

Trading Metrics($ in millions, except per share data) Stock

Price 52-Week Price Range Market Enterprise EV / Revenue EV / EBITDA

Company Ticker 06/28/13 Low High Cap. Value CY 2012A CY 2013E CY 2014E CY 2012A CY 2013E CY 2014E

U.S Internet Retailers (Web Only)

Amazon Nasdaq:AMZN $277.69 $212.61 $284.72 $126,416 $121,561 2.0x 1.6x 1.3x 48.5x 24.2x 18.1x

Shutterfly Nasdaq:SFLY 55.91 25.18 56.46 2,202 2,038 3.2x 2.6x 2.3x 24.7x 14.0x 11.5x

Overstock.com Nasdaq:OSTK 28.20 6.12 28.49 671 589 0.5x 0.5x 0.4x 20.9x 14.1x 12.2x

Blue Nile Nasdaq:NILE 37.78 22.94 43.54 478 438 1.1x 1.0x 0.9x 32.1x 18.8x 14.6x

PC Connection Nasdaq:PCCC 15.45 9.82 17.65 407 349 0.2x 0.2x 0.2x 5.6x 5.0x 4.9x

Vitacost Nasdaq:VITC 8.45 4.97 8.49 297 267 0.8x 0.7x 0.6x NM NM 67.7x

High 3.2x 2.6x 2.3x 48.5x 24.2x 67.7x

Mean 1.3x 1.1x 0.9x 26.4x 15.2x 21.5x

Median 1.0x 0.8x 0.7x 24.7x 14.1x 13.4x

Low 0.2x 0.2x 0.2x 5.6x 5.0x 4.9x


Walmart NYSE:WMT 74.49 67.37 79.96 244,080 298,556 0.6x 0.6x 0.6x 8.2x 8.0x 7.6x

Target NYSE:TGT 68.86 56.70 72.77 44,188 56,635 0.8x 0.8x 0.7x 7.5x 7.7x 6.9x

Macy’s NYSE:M 48.00 32.31 50.00 18,415 23,584 0.9x 0.8x 0.8x 6.3x 6.1x 5.9x

Liberty Interactive Nasdaq:LINT.A 23.01 17.04 24.31 12,404 23,401 2.3x 2.2x 2.1x 13.1x 12.0x 11.3x

Grainger NYSE:GWW 252.18 176.50 269.17 18,015 18,173 2.0x 1.9x 1.8x 13.9x 11.6x 10.5x

Staples Nasdaq:SPLS 15.87 10.57 16.63 10,536 11,077 0.5x 0.5x 0.5x 5.5x 5.8x 5.8x

Best Buy NYSE:BBY 27.33 11.20 28.37 9,312 10,722 0.2x 0.3x 0.2x 5.0x 5.0x 4.7x

Sears Nasdaq:SHLD 42.08 38.40 68.77 4,478 8,165 0.2x 0.2x 0.2x NM 26.1x 13.7x

CDW Nasdaq:CDW 18.62 17.38 19.17 2,704 6,491 0.6x NM NM 9.0x NM NM

Williams-Sonoma NYSE:WSM 55.89 33.56 57.36 5,511 5,263 1.3x 1.2x 1.2x 9.5x 8.7x 8.0x

HSN Nasdaq:HSNI 53.72 39.67 60.87 2,938 3,038 0.9x 0.9x 0.8x 10.7x 8.9x 8.4x

Office Depot NYSE:ODP 3.87 1.51 6.10 1,119 1,610 0.2x 0.2x 0.2x 6.6x 5.2x 5.2x

OfficeMax NYSE:OMX 10.23 4.20 14.92 904 1,373 0.2x 0.2x 0.2x 8.7x 7.0x 6.6x

1-800-Flowers Nasdaq:FLWS 6.19 2.77 6.60 409 410 0.6x 0.5x 0.5x 10.0x 8.2x 7.1x

Nutrisystem Nasdaq:NTRI 11.78 7.18 11.89 328 293 0.7x 0.8x 0.7x 24.3x 12.6x 8.2x

Systemax NYSE:SYX 9.41 8.36 12.97 345 218 0.1x 0.1x 0.1x 8.9x NM NM

High 2.3x 2.2x 2.1x 24.3x 26.1x 13.7x

Mean 0.8x 0.7x 0.7x 9.8x 9.5x 7.8x

Median 0.6x 0.6x 0.6x 8.9x 8.1x 7.3x

Low 0.1x 0.1x 0.1x 5.0x 5.0x 4.7x

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European eCommerce Comparable Public Companies

_______Sources: Capital IQ as of 06/28/13, Internet Retailer 500*Top European Retailers by websales volume, or greater than 33% of revenue in websales




European Internet Retailers (Web Only)

ASOS Holdings AIM:ASC 61.48 24.85 64.82 5,130 5,061 4.5x 4.1x NM 47.8x 44.8x NM

Ocado LSE:OCDO 4.53 0.86 5.34 2,655 2,744 2.5x 2.3x 2.0x NM 43.8x 27.6x

Vistaprint Nasdaq:VPRT 49.37 28.17 50.00 1,677 1,864 1.7x 1.5x 1.4x 13.9x 12.9x 10.2x

Yoox BIT:YOOX 21.46 11.75 22.72 1,230 1,212 2.4x 2.0x 1.6x 27.1x 20.7x 15.2x

Zooplus DB:ZO1 54.16 31.50 60.10 330 332 0.8x 0.6x 0.5x NM 79.3x 26.7x

High 4.5x 4.1x 2.0x 47.8x 79.3x 27.6x

Mean 2.4x 2.1x 1.4x 29.6x 40.3x 19.9x

Median 2.4x 2.0x 1.5x 27.1x 43.8x 20.9x

Low 0.8x 0.6x 0.5x 13.9x 12.9x 10.2x

European Retailers with Online Presence*

Tesco LSE:TSCO 5.04 4.65 5.90 40,486 52,419 0.5x 0.5x 0.5x 6.3x 6.7x 6.5x

Carrefour ENXTPA:CA 27.47 16.73 31.75 19,312 32,812 0.3x 0.3x 0.3x 6.7x 6.7x 6.2x

Kering / PPR ENXTPA:KER 202.99 138.25 233.73 25,635 29,844 2.3x 2.2x 2.1x 11.2x 10.3x 9.2x

Sainsburys LSE:SBRY 5.40 4.48 6.06 10,262 13,686 0.3x 0.4x 0.4x 6.2x 6.5x 6.1x

Dixon Retail LSE:DXNS 0.62 0.22 0.68 2,263 2,196 0.2x 0.2x 0.2x 5.1x 4.8x 4.3x

Home Retail Group LSE:HOME 2.04 1.05 2.51 1,671 1,076 0.1x NM NM 3.1x NM NM

High 2.3x 2.2x 2.1x 11.2x 10.3x 9.2x

Mean 0.6x 0.7x 0.7x 6.4x 7.0x 6.5x

Median 0.3x 0.4x 0.4x 6.3x 6.7x 6.2x

Low 0.1x 0.2x 0.2x 3.1x 4.8x 4.3x

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Specialized eCommerce Comparable Public Companies

_______Source: Capital IQ as of 06/28/13




Marketplaces

Tencent SEHK:700 39.22 27.85 40.61 71,967 68,872 9.9x 7.0x 5.6x 24.5x 19.0x 15.6x

eBay Nasdaq:EBAY 51.72 38.06 58.04 67,712 62,826 4.5x 3.9x 3.3x 15.3x 11.4x 9.8x

Rakuten JASDAQ:4755 11.82 6.46 13.54 15,539 15,764 3.1x 3.1x 2.8x 13.5x 12.3x 10.8x

Mercado Libre Nasdaq:MELI 107.76 64.18 128.46 4,758 4,565 12.2x 9.7x 7.8x 32.9x 26.9x 21.3x

HomeAway Nasdaq:AWAY 32.34 19.58 34.30 2,903 2,588 10.9x 7.6x 6.3x NM 26.1x 20.9x

carsales.com ASX:CRZ 8.63 5.40 9.65 2,059 2,016 9.8x 9.4x 8.3x 18.2x 17.0x 14.8x

Shutterstock NYSE:SSTK 55.78 21.00 57.49 1,937 1,830 10.8x 8.1x 6.5x NM 38.2x 26.9x

High 12.2x 9.7x 8.3x 32.9x 38.2x 26.9x

Mean 8.7x 7.0x 5.8x 20.9x 21.6x 17.2x

Median 9.9x 7.6x 6.3x 18.2x 19.0x 15.6x

Low 3.1x 3.1x 2.8x 13.5x 11.4x 9.8x

Travel

Priceline Nasdaq:PCLN 826.67 553.43 847.33 41,441 37,912 7.2x 5.8x 4.8x 19.8x 15.3x 12.5x

Expedia Nasdaq:EXPE 60.15 43.44 68.09 7,890 7,517 1.9x 1.6x 1.4x 11.7x 8.7x 7.3x

Orbitz NYSE:OWW 8.03 2.07 8.75 855 1,085 1.4x 1.3x 1.3x 10.2x 7.8x 7.1x

MakeMyTrip Nasdaq:MMYT 14.27 10.77 18.50 546 464 2.1x 4.7x 3.9x NM NM 48.9x

Travelzoo Nasdaq:TZOO 27.26 16.56 29.80 422 357 2.4x 2.2x 2.1x 11.5x 11.5x 10.3x

High 7.2x 5.8x 4.8x 19.8x 15.3x 48.9x

Mean 3.0x 3.1x 2.7x 13.3x 10.8x 17.3x

Median 2.1x 2.2x 2.1x 11.6x 10.1x 10.3x

Low 1.4x 1.3x 1.3x 10.2x 7.8x 7.1x

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eCommerce Enablement Comparable Public Companies





eCommerce Services

Google Nasdaq:GOOG 880.37 562.09 920.60 296,135 253,413 5.1x 4.2x 3.6x 15.6x 11.6x 9.8x

Baidu Nasdaq:BIDU 94.60 82.98 134.71 33,083 29,753 8.3x 6.1x 4.7x 14.8x 13.3x 10.7x

Yahoo! Nasdaq:YHOO 25.13 14.59 27.68 27,348 24,417 4.9x 5.4x 5.2x 18.6x 14.8x 14.4x

Yandex Nasdaq:YNDX 27.65 16.60 42.01 9,338 8,990 9.5x 7.5x 6.0x 22.1x 16.5x 13.4x

Groupon Nasdaq:GRPN 8.55 2.60 10.67 5,714 4,546 1.9x 1.8x 1.6x 29.9x 15.2x 12.6x

ValueClick Nasdaq:VCLK 24.71 15.04 32.25 1,909 1,860 2.8x 2.5x 2.2x 9.3x 7.4x 6.5x

Moneysupermarket LSE:MONY 2.91 1.89 3.38 1,563 1,533 4.6x 4.5x 4.1x 13.1x 12.5x 11.3x

ChannelAdvisor NYSE:ECOM 15.73 14.25 19.77 351 353 6.6x 5.5x 4.3x NM NM NM

High 9.5x 7.5x 6.0x 29.9x 16.5x 14.4x

Mean 5.5x 4.7x 4.0x 17.6x 13.0x 11.2x

Median 5.0x 4.9x 4.2x 15.6x 13.3x 11.3x

Low 1.9x 1.8x 1.6x 9.3x 7.4x 6.5x

eCommerce Infrastructure

IBM NYSE:IBM 191.11 181.85 215.90 213,013 234,474 2.2x 2.3x 2.2x 8.6x 8.4x 7.9x

Oracle Nasdaq:ORCL 30.71 28.61 36.43 144,534 131,309 3.5x 3.5x 3.3x 7.6x 7.1x 6.5x

SAP DB:SAP 73.04 57.96 84.44 87,099 87,669 4.1x 3.8x 3.5x 12.1x 11.1x 9.8x

Demandware NYSE:DWRE 42.41 21.35 42.49 1,415 1,313 16.5x 13.2x 9.8x NM NM NM

Digital River Nasdaq:DRIV 18.77 12.80 18.94 618 281 0.7x 0.7x 0.7x 7.5x 7.3x 4.6x

PFSweb Nasdaq:PFSW 4.00 2.14 4.65 51 57 0.2x 0.3x 0.3x 5.6x 6.4x 4.6x

Intershop XTRA:ISH2 1.99 1.86 3.25 60 44 0.6x 0.6x 0.5x NM NM NM

High 16.5x 13.2x 9.8x 12.1x 11.1x 9.8x

Mean 4.0x 3.5x 2.9x 8.3x 8.0x 6.7x

Median 2.2x 2.3x 2.2x 7.6x 7.3x 6.5x

Low 0.2x 0.3x 0.3x 5.6x 6.4x 4.6x

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U.S. eCommerce Comparable Public Companies (Cont.)

_______Sources: Capital IQ as of 06/28/13, Internet Retailer 500*Top U.S. Retailers by websales volume, or greater than 33% of revenue in websales

Operating Metrics($ in millions, except per share data)

LTM Revenue Growth LTM Revenue EBITDA

Company Ticker As Of '12A - '13E 13E - '14E GM CY 2012A CY 2013E CY 2014E CY 2012A CY 2013E CY 2014E

U.S Internet Retailers (Web Only)

Amazon Nasdaq:AMZN Mar 2013 22% 22% 25% $61,093 $74,821 $91,087 $2,508 $5,023 $6,708

Shutterfly Nasdaq:SFLY Mar 2013 20% 16% 54% 641 771 894 82 145 178

Overstock.com Nasdaq:OSTK Mar 2013 13% 7% 18% 1,099 1,241 1,331 28 42 48

Blue Nile Nasdaq:NILE Mar 2013 14% 12% 19% 400 456 512 14 23 30

PC Connection Nasdaq:PCCC Mar 2013 2% 3% 13% 2,159 2,195 2,268 63 69 71

Vitacost Nasdaq:VITC Mar 2013 19% 16% 23% 331 394 458 NM NA 4


Walmart NYSE:WMT Apr 2013 3% 5% 25% 469,162 485,528 509,216 36,302 37,488 39,534

Target NYSE:TGT May 2013 4% 6% 29% 71,960 74,962 79,626 7,513 7,330 8,165

Macy’s NYSE:M May 2013 3% 3% 40% 27,686 28,380 29,238 3,715 3,840 4,028

Liberty Interactive Nasdaq:LINT.A Mar 2013 3% 5% 38% 10,054 10,404 10,951 1,789 1,955 2,070

Grainger NYSE:GWW Mar 2013 7% 8% 44% 8,950 9,585 10,361 1,304 1,562 1,738

Staples Nasdaq:SPLS May 2013 (3%) 0% 26% 24,381 23,660 23,737 2,015 1,903 1,912

Best Buy NYSE:BBY May 2013 (13%) 1% 23% 49,184 42,741 43,194 2,164 2,147 2,266

Sears Nasdaq:SHLD May 2013 (7%) (1%) 26% 39,854 37,153 36,831 NM 313 598

CDW Nasdaq:CDW Mar 2013 NM NA 17% 10,128 NA NA 721 NA NA

Williams-Sonoma NYSE:WSM May 2013 6% 6% 39% 4,043 4,279 4,556 557 602 659

HSN Nasdaq:HSNI Mar 2013 5% 5% 36% 3,267 3,442 3,619 284 342 362

Office Depot NYSE:ODP Mar 2013 (3%) (1%) 30% 10,696 10,383 10,262 244 308 309

OfficeMax NYSE:OMX Mar 2013 (3%) 0% 26% 6,920 6,724 6,738 157 196 209

1-800-Flowers Nasdaq:FLWS Mar 2013 5% 4% 41% 733 772 806 41 50 58

Nutrisystem Nasdaq:NTRI Mar 2013 (10%) 13% 48% 397 355 403 12 23 36

Systemax NYSE:SYX Mar 2013 2% 4% 14% 3,545 3,608 3,739 24 NA NA

Confidential 34

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European eCommerce Comparable Public Companies (Cont.)

_______Sources: Capital IQ as of 06/28/13, Internet Retailer 500*Top European Retailers by websales volume, or greater than 33% of revenue in websales




European Internet Retailers (Web Only)

ASOS Holdings AIM:ASC Feb 2013 NM NA 50% 1,126 NA NA 106 113 NA

Ocado LSE:OCDO May 2013 8% 19% 31% 1,088 1,170 1,389 54 63 99

Vistaprint Nasdaq:VPRT Mar 2013 11% 9% 66% 1,108 1,228 1,338 134 144 183

Yoox BIT:YOOX Mar 2013 24% 24% 27% 496 615 765 45 56 79

Zooplus DB:ZO1 Mar 2013 26% 22% 31% 421 530 647 NM 4 12

European Retailers with Online Presence*

Tesco LSE:TSCO Feb 2013 (2%) 4% 7% 103,798 101,663 105,794 8,260 7,817 8,125

Carrefour ENXTPA:CA Dec 2012 (2%) 3% 19% 103,448 101,391 104,708 4,887 4,942 5,293

Kering / PPR ENXTPA:KER Dec 2012 4% 9% 61% 12,837 13,364 14,534 2,660 2,892 3,266

Sainsburys LSE:SBRY Mar 2013 (10%) 2% 5% 41,206 37,192 37,863 2,212 2,105 2,226

Dixon Retail LSE:DXNS Apr 2013 (3%) 2% 1% 13,278 12,895 13,102 432 455 510

Home Retail Group LSE:HOME Mar 2013 NM NA 32% 8,783 NA NA 351 NA NA

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Specialized eCommerce Comparable Public Companies (Cont.)





Marketplaces

Tencent SEHK:700 Mar 2013 40% 26% 57% 6,983 9,784 12,292 2,814 3,629 4,405

eBay Nasdaq:EBAY Mar 2013 16% 17% 70% 14,072 16,314 19,048 4,119 5,494 6,415

Rakuten JASDAQ:4755 Mar 2013 (1%) 11% 83% 5,127 5,095 5,668 1,172 1,281 1,460

Mercado Libre Nasdaq:MELI Mar 2013 26% 25% 79% 374 470 588 139 170 214

HomeAway Nasdaq:AWAY Mar 2013 43% 20% 84% 238 340 408 51 99 124

carsales.com ASX:CRZ Dec 2012 4% 13% 81% 207 216 244 111 119 136

Shutterstock NYSE:SSTK Mar 2013 32% 25% 62% 170 225 281 32 48 68

Travel

Priceline Nasdaq:PCLN Mar 2013 26% 20% 79% 5,248 6,592 7,923 1,915 2,479 3,032

Expedia Nasdaq:EXPE Mar 2013 19% 14% 78% 4,030 4,794 5,442 643 868 1,025

Orbitz NYSE:OWW Mar 2013 7% 4% 81% 779 830 861 106 140 151

MakeMyTrip Nasdaq:MMYT Mar 2013 (54%) 21% 23% 217 99 120 NM NA 9

Travelzoo Nasdaq:TZOO Mar 2013 6% 7% 90% 151 161 173 31 31 34

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eCommerce Enablement Comparable Public Companies (Cont.)





eCommerce Services

Google Nasdaq:GOOG Mar 2013 19% 17% 58% 50,175 59,816 69,854 16,278 21,816 25,847

Baidu Nasdaq:BIDU Mar 2013 36% 29% 77% 3,579 4,851 6,278 2,016 2,239 2,786

Yahoo! Nasdaq:YHOO Mar 2013 (9%) 2% 68% 4,987 4,562 4,666 1,315 1,654 1,700

Yandex Nasdaq:YNDX Mar 2013 28% 24% 75% 942 1,206 1,494 406 545 671

Groupon Nasdaq:GRPN Mar 2013 9% 11% 65% 2,334 2,550 2,831 152 299 360

ValueClick Nasdaq:VCLK Mar 2013 12% 12% 62% 661 740 830 201 251 286

Moneysupermarket LSE:MONY Dec 2012 3% 8% 74% 333 344 372 117 122 136

ChannelAdvisor NYSE:ECOM Mar 2013 21% 26% 73% 54 65 81 NM NA NA

eCommerce Infrastructure

IBM NYSE:IBM Mar 2013 (1%) 3% 48% 104,507 103,475 106,167 27,121 28,016 29,648

Oracle Nasdaq:ORCL May 2013 2% 6% 81% 37,230 37,840 39,968 17,300 18,456 20,054

SAP DB:SAP Mar 2013 8% 10% 72% 21,390 23,139 25,355 7,224 7,887 8,946

Demandware NYSE:DWRE Mar 2013 25% 35% 70% 79 99 134 NM NA 4

Digital River Nasdaq:DRIV Mar 2013 4% 2% 82% 386 400 407 37 39 61

PFSweb Nasdaq:PFSW Mar 2013 (18%) 13% 18% 240 197 223 10 9 12

Intershop XTRA:ISH2 Mar 2013 (1%) 11% 29% 75 74 82 NM NA NA

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Disclaimer

Disclosure: This newsletter is a periodic compilation of certain economic and corporate information, as well as completedand announced merger and acquisition activity. Information contained in this newsletter should not be construed as arecommendation to sell or buy any security. Any reference to or omission of any reference to any company in thisnewsletter should not be construed as a recommendation to buy, sell or take any other action with respect to any securityof any such company. We are not soliciting any action with respect to any security or company based on this newsletter.The newsletter is published solely for the general information of clients and friends of Headwaters MB, LLC. It does not takeinto account the particular investment objectives, financial situation, or needs of individual recipients. Certain transactions,including those involving early stage companies, give rise to substantial risk and are not suitable for all investors.

This newsletter is based upon information that we consider reliable, but we do not represent that it is accurate orcomplete, and it should not be relied upon as such. Prediction of future events is inherently subject to both known andunknown risks, and other factors that may cause actual results to vary materially. We are under no obligation to updatethe information contained in this newsletter. Opinions expressed are our present opinions only and are subject to changewithout notice. Additional information is available upon request. The companies mentioned in this newsletter may beclients of Headwaters MB, LLC. The decisions to include any company in this newsletter is unrelated in all respects to anyservice that Headwaters MB, LLC may provide to such company. This newsletter may not be copied or reproduced in anyform, or redistributed without the prior written consent of Headwaters MB, LLC. The information contained herein shouldnot be construed as legal advice.

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