Valuation. Market Essentials Switzerland. as of 30 June 2017

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1 Valuation Market Essentials Switzerland as of 30 June 2017

2 Valuation and Business Modeling Services We offer a great variety of services and customized solutions for different occasions: Transactional business valuations (deal models) Standard Excel models for day2day use* Tax valuations Integrated planning, forecasting and consolidation Fairness opinions/ regulatory valuations Liquidity and cash flow planning Expert valuations/ second opinions CARVEx (tool for carve out financials) Disputes and arbitration ProjeX (tool for group tax planning) Financial reporting valuations* Financing and LBO modeling Start-up valuations Financial model review and trainings Valuation Business Modeling * Purchase price allocations, goodwill impairment tests, employee stock (option) valuations

3 Trading multiples Revenue multiples development Distribution as per 4.0x 3.5x 3.4x 3.0x Media, techn. and telecom 1.7x 2.5x 2.0x 1.5x 1.7x 1.5x 3.4x 0.5x Chemicals. constr, and mat 1.5x 2.0x 3.0x 4.0x 5.0x First and fourth quartile Second and third quartile EBITDA multiples development 3 EBIT multiples development x 25.0x 24.8x x 1 5.0x 18.5x 15.8x 12.9x 1 9.8x 7.6x x 1 5.0x 19.5x 17.9x 17.1x 14.6x 11.6x Sectors: Margin development LTM EBITDA margin LTM EBIT margin 25.0% 25.0% % % 15.0% 1 5.0% 13.5% 12.5% 1 9.5% 15.0% 1 5.0% 14.0% 13.9% 10.3% 8.7% 7.3% 5.0%

4 Cost of capital components Risk-free rate Implied yield on 10-year government bonds, monthly development over five years 4.0% High: 3.0% 3.0% High: 2.3% High: 1.3% Low: Implied yield on 10-year government bonds, monthly average over five years 2.5% 2.1% 2.1% 2.1% 2.1% 2.2% 1.4% 1.2% 1.1% Low: -0.2% 0.4% 0.4% 0.3% 0.3% Low: -0.6% CHF risk free 10 years EUR risk free 10 years USD risk free 10 years Switzerland Eurozone United States Unlevered beta development Current market risk premium: 6.0% Distribution as per Media, techn. and telecom Chemicals. constr, and mat First and fourth quartile Second and third quartile Debt/total capital development Distribution as per % % Media, techn. and telecom 9.1% 3 9.8% 2 2.3% % 9.8% 9.1% 6.7% 2.3% 39.4% Chemicals. constr, and mat 6.7% First and fourth quartile Second and third quartile

5 Credit spread Credit Spread Barclays Europe Aggregate, monthly development over five years 3.5% 3.0% 2.5% LIBOR 3 months LIBOR, monthly development over five years High: 1.3% High: 0.3% 1.3% 0.9% 0.7% AAA AA A BBB High: 0.1% Low: 0.2% - Low: -0.4% Low: -0.9% CHF LIBOR 3m EUR LIBOR 3m USD LIBOR 3m Macro-economic data CPI Inflation* Nominal GDP growth* in % in %, based on local currency Switzerland Switzerland 2.6% Germany 2.1% Germany 3.0% United States United States 3.8% World 4.8% World 8.5% Emerging Markets 4.1% Emerging Markets 8.0% 3.0% 4.0% 5.0% 4.0% 6.0% 8.0% 1 * excluding Venezuela CPI inflation (geom. mean ) GDP growth, nominal (geom. mean ) Banking and insurance sector LTM P/E P/TB 2 1.3x 16.0x 12.0x 16.2x 12.8x 11.9x 1.1x 1.12x 1.12x 1.06x 8.0x 0.9x 4.0x 0.8x Global and private banks Insurance companies Retail and cantonal banks 0.7x Global and private banks Insurance companies Retail and cantonal banks

Your contacts in Switzerland Louis Siegrist Partner Valuation & Business Modeling +41 58 286 21 31 louis.siegrist@ch.ey.

com Marc Filleux, CFA Senior Manager Valuation +41 58 286 36 60 marc.filleux@ch.ey.com Stéphanie Chaumier, CA Senior Manager Valuation EY Geneva +41 58 286 59 49 stephanie.chaumier@ch.ey.com Mina Protitch, CFA Manager EMEIA Financial Services +41 58 286 38 46 mina.

It is aimed at finance professionals that regularly deal with valuations and corporate finance related topics.

For this edition, all data was downloaded as per date of this brochure (see cover page). Therefore, values may deviate when compared with values of previous brochure editions.

CH-ASP ED None This publication contains information in summary form and is therefore intended for general guidance only.

6 Your contacts in Switzerland Louis Siegrist Partner Valuation & Business Modeling Hannes Schobinger, CFA Executive Director Business Modeling Marc Filleux, CFA Senior Manager Valuation Stéphanie Chaumier, CA Senior Manager Valuation EY Geneva Mina Protitch, CFA Manager EMEIA Financial Services About this brochure EY s Valuation Market Essentials Switzerland brochure summarizes relevant market data that is regularly used in valuations. It is aimed at finance professionals that regularly deal with valuations and corporate finance related topics. The analysis is based on the constituents of the Swiss All Share Index (excluding general financial and real estate companies) and data from S&P Capital IQ/Oxford Economics. For this edition, all data was downloaded as per date of this brochure (see cover page). Therefore, values may deviate when compared with values of previous brochure editions. EY Assurance Tax Transactions Advisory 2017 Ernst & Young Ltd. All Rights Reserved. CH-ASP ED None This publication contains information in summary form and is therefore intended for general guidance only. Although prepared with utmost care this publication is not intended to be a substitute for detailed research or professional advice. Therefore, by reading this publication, you agree that no liability for correctness, completeness and/or currentness will be assumed. It is solely the responsibility of the readers to decide whether and in what form the information made available is relevant for their purposes. Neither Ernst & Young Ltd nor any other member of the global EY organization accepts any responsibility. On any specific matter, reference should be made to the appropriate advisor. ey.com/ch

Valuation. Market Essentials Switzerland. as of 30 September 2017

Valuation. Market Essentials Switzerland. as of 30 September 2017 Valuation Market Essentials Switzerland as of 30 September 2017 Valuation and Business Modeling Services We offer a great variety of services and customized solutions for different occasions: Transactional