Private Equity Capital Briefing

Transcription

1 June 217 Private Equity Capital Briefing Monthly insights and intelligence on PE trends PE firms get back into brands Consumer products the most active sector ytd 217

2 The Private Equity Capital Briefing has been designed to help you remain current on capital market trends. It captures key insights from subject-matter professionals across EY firms and distills this intelligence into a succinct and user-friendly publication. Private Equity Capital Briefing can provide perspectives on both recent developments and the longer-term outlook for private equity (PE) fundraising, acquisitions and exits, as well as trends in global M&A, cross-border deal flows, IPOs and the debt and bond markets. Please feel free to reach out to any of the subject-matter contacts listed on the back page of this document if you wish to discuss any of the topics covered.

3 Contents Section 1 Private equity: fundraising 4 Private equity: acquisitions 5 Private equity: exits 6 Section 2 M&A 7 Section 3 IPOs 9 Section 4 Loans 1 Section 5 Bonds 11 Appendices Appendix A PE activity by geography 13 Appendix B M&A activity monthly flash 22 Appendix C M&A multiples and bid premium 23 Appendix D Capital Confidence Barometer 24

4 1.i. Private equity: fundraising Executive summary PE fundraising is up 9% through the end of May, with firms raising US$231b for commingled funds. Buyout and infrastructure is driving the trend. Buyout funds have accounted for 46% of funds raised this year, up from 39% last year. Dry powder remains the most important dynamic in the industry. Buyout firms have more than US$57b available for new deals. Adding other asset classes brings the total to more than US$1.5t available for investment. Current state Fundraising PE fundraising is seeing another strong year. To date, PE firms have closed funds valued at US$231b, up 9% from the same period last year. This represents the second-most active start to a year on record. Funds with the inherent ability to deploy large amounts of assets into the market are driving the trend. In the first five months of last year, buyout fundraising represented 39% of total PE fundraising. So far this year, buyout fundraising is 46% of total fundraising. Similarly, infrastructure increased from 1% of aggregate fundraising to 14%. Growth capital, real estate funds and other strategies have seen relative declines. Activity is currently centered on the US. Firms have raised US$165b for US-focused funds this year, up 45% from the same period a year ago. The Asia-Pacific region has seen a modest increase, with US$18.6b raised, up 11% from a year ago. After an active 216 that saw fundraising increase nearly 3% vs. the prior year, activity in Europe has declined, from US$76b last year, to US$38b raised through the first five months of 217. Dry powder Dry powder continues to climb. Buyout firms currently have nearly US$57b in capital available for new deals, far surpassing the US$478b they had at the former market peak in Including other fund types growth capital, real estate, infrastructure and others firms have more than US$1.5t available for investment. Global dry powder by type (as a percent of total) Global PE fundraising 23 through YTD 217 (in US$b) $7 $6 $5 $4 $3 $2 $1 $ Source: Preqin YTD YTD Global PE fundraising by type YTD 216 vs. YTD 217 (as a percent of total) 39% 46% 23% 14% 13% 1% YTD 216 YTD 217 5% 1% 7% 16% 13% Buyout Infrastructure Real Estate Growth capital Secondaries Other 4% Growth, 7% Other, 22% Buyout, 38% Source: Preqin Fundraising by region YTD 216 vs. YTD 217 (US$b) Venture, 11% Real estate, 16% Source: Preqin Distressed, 6% Environment and horizon The expectation at the beginning of this year was that the industry may begin to see a slowdown in the pace of commitments as LPs looked for firms to deploy dry powder. However, five months in, there has been little indication that investors are slowing down. The secular trends driving capital into the asset class (new investors like high net worth (HNW) and family offices, and the need for pension funds to bridge their funding gaps) are winning out vs. the cyclical headwinds (slowing distributions). Blackstone announced a new fund targeting the infrastructure space, including a cornerstone commitment of US$2b from Saudi Arabia s Public Investment Fund. Blackstone has said it plans to raise an additional US$2b for the fund from other investors, which, with leverage, could give Blackstone approximately US$1b in purchasing power. The Trump Administration has repeatedly stated it intends to help invest more than US$1t in US infrastructure projects through a combination of direct funding, tax reform and publicprivate partnerships. Source: Preqin US: YTD 216 US$113b YTD 217 US$165b Top funds raised in 217 Europe: YTD 216 US$76b YTD 217 US$38b Fund Type Target (in US$b) Asia-Pac: YTD 216 US$19b YTD 217 US$21b Raised (in US$b) Global Infrastructure Partners III Infrastructure US Silver Lake Partners V Buyout US KKR Americas XII Fund Buyout US Vista Equity Partners Fund VI Buyout US Firm nationality Clayton Dubilier & Rice X Buyout US Source: Preqin 4 Private Equity Capital Briefing

5 1.ii. Private equity: acquisitions Executive summary Acquisition activity remains strong, with firms announcing 565 deals valued at US$123.6b, up.6% from the same period a year ago. On a sector basis, technology remains active, though not at the levels seen last year. Consumer products and retail has seen an increase in activity this year, with deals accounting for 2% of aggregate PE investment, up from 1% last year. Add-ons have declined as increased competition and higher valuations extend deeper into the middle market. Current state Deal activity remains strong. PE firms announced 117 deals valued at US$27.2b in May, bringing the YTD total to 565 deals valued at US$123.6b, up.6% from the same period a year ago. On a sector basis, technology remains active, accounting for 17% of the capital invested. This is down from last year, however, when technology was 29% of capital invested. The consumer products and retail sector has been more active than last year, accounting for 2% of PE investment, up from 1% a year ago. Large deals in the space include Bain s acquisition of Diversey for US$3.2b; CDH s investment in Belle International for US$5.8b; and L Catterton s investment in Leslie s Poolmart for US$1.8b. In 214 and 215, add-ons were an attractive way for firms to put capital to work amid a high-price environment. Firms announced addon deals valued at US$26b in 215, which was a record. However, since then the pace of bolt-ons has decreased as increased competition for deals has extended well into the middle market, negating some of the lower multiples such deals have historically provided. deals. Global PE add-on deals (in US$b) $3 $25 $2 $15 $1 $5 $ Global PE acquisitions YTD 216 vs. YTD 217 (in US$b) $14 $12 $1 $8 $6 $4 $2 $ Top PE deals YTD 217 Americas EMEA Asia-Pacific All regions YTD 216 YTD 217 Date Target Value (in US$b) Sector Sponsor 12-Feb-17 Stada Arzneimittel AG $5.6 Health care Bain Capital LLC; Cinven Ltd. 9-May-17 West Corp. $4.9 Telecom Apollo Global Management LLC 1-Feb-17 Aon Hewitt LLC (BPO platform) $4.8 Technology Blackstone Group LP 17-Mar-17 USI Insurance Services LLC $4.3 Insurance KKR & Co. LP Environment and horizon Investors at the annual Emerging Markets Private Equity Association (EMPEA) conference in Washington, DC in May discussed the growing importance of impact investing across the emerging markets. While smaller mid-market and growth capital funds have been active in impact investing for many years, recent months have seen large global players get involved as well. In late 216, TPG Growth launched the US$2b Rise Fund, which focuses on achieving social and environmental impact alongside financial returns. It followed Bain s entry into the impact market, with its Double Impact Fund. Participants noted that the industry is currently in the process of moving from a do no harm type mentality to actively doing good, and agreed that effective measurement of both financial and impact progress is the key to being able to do it consistently. Pricing levels continue to push higher. The latest data point comes from Epsilon Research and French investment firm Argos Soditic s Argos Mid-Market Index, which showed that multiples paid for European mid-market companies topped 8.6 times EBITDA in Q1 217, up 1.2% from the prior quarter. For PE acquisitions, multiples averaged 9.2x over the same period, the result of continued high levels of dry powder and increased competition for deals. The Argos Index defines a mid-market company as those valued between 15m and 5m. 5-Jun-17 Sponda Oyj $4.1 Real estate Blackstone Group LP 13-Mar-17 DH Corp. $3.4 Technology Vista Equity Partners LLC 24-May-17 Q-Park NV $3.3 Transportation KKR & Co. LP 27-Mar-17 Diversey Inc. $3.2 Consumer products Bain Capital LLC 14-Mar-17 Air Methods Corp. $2.5 Transportation American Securities LLC 18-May-17 Fairfax Media Ltd. $2.2 Publishing Hellman & Friedman LLC PE deal value by sector YTD 216 vs. YTD 217 (as a percentage of total) 35% 3% 25% 2% 15% 1% 5% % 5 Private Equity Capital Briefing

6 1.iii. Private equity: exits Executive summary 217 has seen a rebound in exit activity, with PE firms announcing deals valued at US$146.6b, up 29% from the same period a year ago. Strength is evident across all routes trade sales, secondaries, and IPOs. Secondaries and IPOs are accounting for a larger proportion of the exit market. Current state May was an active month for PE exit activity, with firms announcing 94 deals valued at US$42.3b, a 41% increase over last year. Overall, 217 has seen a rebound in exit activity after a quiet year in 216. Firms have announced deals valued at US$146.6b, up 29% from last year, with activity increasing across all exit routes: Firms have announced 239 exits via trade sale valued at US$91.9b, up 21% from a year ago; exits via secondary buyouts are up 41% by value vs. a year ago, to US$39.7b across 133 deals; and PE-backed IPOs have increased markedly vs. last year, when global new issuance markets were largely closed on macro concerns and negative investor sentiment. PE firms have taken 49 companies public with an aggregate value of US$16.2b. While sales to strategic investors still account for the bulk of PE sales, their relative importance has declined this year as PE firms became more active in secondary sales and IPOs. Last YTD, sales to strategic investors accounted for 67% of total exited value; this year, such sales have accounted for 62% of total exit value. Sales via secondary and IPO have both increased as a percentage of exits. PE exits by year (US$b) Deal value No. of deals $189.4 $162.1 $146.6 $113.6 YTD 214 YTD 215 YTD 216 YTD 217 PE exits by type YTD 216 vs. YTD PE exits by type and region (US$b) Announced Company Value (US$b) Sector Sponsor 67% 62% 2-Jun-17 Logicor Europe Ltd. $13.8 Transportation Blackstone Group LP 15-May-17 Patheon NV $7.2 Health care JLL Partners LLC 8-May-17 Tribune Media Co. $6.6 Telecom Angelo Gordon & Co. LP; Oaktree Capital Group LLC 9-May-17 West Corp. $4.9 Telecom Thomas H Lee Partners, LP; Quadrangle Group LLC; Apollo Global Management LLC 17-Mar-17 USI Insurance Services LLC $4.3 Insurance Onex Corp. 25% 27% 8% 11% Strategic Secondary IPO YTD 216 YTD 217 PE IPOs by year (US$b) Environment and horizon PE firms will continue to exit companies on a programmatic basis as long as high valuations remain in the M&A and IPO markets. Nonetheless, the bulk of companies acquired at the top of the last cycle have now been exited and cash returned to LPs. Thus, despite the uptick in exit activity this year, the top of the exit cycle has likely passed, and firms will continue to focus on deployment. Barring any exogenous shocks, IPO markets should remain active for the balance of the year. Strong investor sentiment and an IPO window that was closed for most of 216 has led to strong demand for current issues. A number of successful launches by high-profile companies in recent months is emboldening companies to enter the pipeline. $12 $1 $8 $6 $4 $2 $ Top PE IPOs YTD 217 Pricing date Company Sector Market value (US$b) Sponsor 31-Jan-17 Invitation Homes Inc. Real estate $6.3 Blackstone Group LP 3-May-17 Antero Midstream GP LP Oil and gas $4.4 Warburg Pincus LLC; Trilantic Capital Management LP 11-May-17 Gardner Denver Holdings Inc. Machinery $3.9 KKR & Co. LP 26-Jan-17 Jagged Peak Energy Inc. Oil and gas $3.2 Quantum Energy Partners 26-Jan-17 JELD-WEN Holding Inc. Construction $2.4 Onex Corp. 6 Private Equity Capital Briefing

7 2. M&A Executive summary May continued to exhibit the firm M&A market seen so far in 217, with US$247b of deals announced. US$1b US$1b deals are driving the current market, worth US$116b in this band announced in May 217. US acquisitions for European companies reach a record level of US$76b in 217 so far. The M&A outlook for 217 remains positive as companies look keen to conduct strategic reviews of their portfolio more frequently. Cross-border M&A should continue to increase further in 217. Current state The M&A market remained firm, with US$247b of deals announced in May 217, up 6% against April 217 and down 23% against May 216 (which was largely inflated due to the announcement of the Bayer-Monsanto deal). An interesting thing to note is that the month saw deals worth US$116b in the US$1b US$1b band, compared with US$114b deals in May 216 and US$14b in the same period of 215. In terms of volume, the month recorded 2,833 deals, compared with 2,522 deals recorded at the same time last year. US-based companies continued to drive cross-border deals, with US$17b in announced acquisitions so far this year. There has been a sharp increase in the announced acquisitions of European companies by US firms. 217 has seen US$76b worth of such deals, which is a recordhigh figure at this stage and up 61% on the same period last year. One of the major drivers of this trend is the relative strength of the dollar against pound and the euro, which has made foreign acquisitions more attractive for US companies. The merger between US-based chemical firm Huntsman Corp and European rival Swiss Clariant AG is the latest in a series of chemicals tieups as growth in parts of the industry has slowed. It is the latest example of the spate of big deals between the US and Europe. This all-stock transaction would create a chemical giant with approximately US$2b enterprise value. The month saw the largest deal of 217 worth US$34b, in which Italy's Atlantia S.p.A launched a cash-and-share offer for Spain's Abertis Infraestructuras S.A. The deal will create the world's biggest operator of toll roads, with 14,95km under its management. A tie-up with Abertis, which gets a third of its core earnings from France and has extensive operations in Latin America, would allow Atlantia to generate around 6% of core earnings outside its home turf, well ahead of a self-imposed 22 deadline. Environment and horizon M&A is expected to remain firm in the coming months as dealmakers continue to pursue growth opportunities and technological advantage amid ongoing disruption. Many of the head winds that affected M&A activity in 216 have subsided. New geopolitical complexities have emerged in 217 but we may be witnessing a new kind of M&A market, where these geopolitical concerns might not derail deals, unlike in previous cycles. Boardroom agendas continue to be dominated by growth demands and companies look set to retain their focus on expansion to tap into new areas of opportunity. Improving economic conditions underpin M&A activity. Cross-border dealmaking should continue to rise. Despite concerns about political risk and uncertainty, 217 has seen a substantial increase in cross-border deals. This indicates that companies are taking such challenges in today s hostile business environment in their stride and making moves they consider necessary to achieve growth. Cross-border M&A enables companies to buy into pockets of opportunity and secure supply chains. Technology and digital disruption remain the major drivers of the current M&A market. Unrelenting advances in technology and digitalization have led to disruption in business models and changing customer behaviors, making it imperative for executives to reassess and reinvent their portfolios continually, with an aim to future-proof them. Many companies are showing interest in acquiring technological capabilities, such as artificial intelligence and robotics that can help them survive and thrive in the digital world. M&A would continue to be dominated by other factors such as convergence across industries and sectors, and portfolio reorganization. Companies are more frequently conducting strategic reviews and looking for acquisitions outside their core sector to remain relevant in today s business environment. We should expect to see an uptick in divestments, as companies reorganize their portfolios and shift to new business models in order to invest in growth opportunities. 7 Top 1 announced deals by value, May 217. Target Sector Country Acquiror Value (US$m) Abertis Infraestructuras SA Automotive and transportation Spain Atlantia SpA 34,32 Huntsman Corp. Diversified industrial US Clariant AG 1,249 products Patheon NV Life sciences US Thermo Fisher Scientific Inc. 7,138 Tribune Media Co. Media and entertainment Deal environment: by area (US$b) Last 12 months (LTM) to May 217 versus previous 12 months (PTM) to May 216 and EY analysis. Deal environment: by target sector and target area (% share of global value) LTM to May 217 and EY analysis; excludes real estate asset sales. Note: because of rounding, percentages may not add up to total. M&A analysis as at 1 June 217. Note: data is continually updated and therefore subject to change. US Figures have been rounded off to nearest decimal place. Sinclair Broadcast Group Inc. VWR Corp. Life sciences US Avantor Performance Materials Holdings LLC 6,69 6,286 1&1 Technology Germany Drillisch AG 6,182 Telecommunication SE Endeavour Energy (5.4%) Power and utilities Australia Investor group 5,614 Veresen Inc. Oil and gas Canada Pembina Pipeline Corp. 5,58 West Corp. Telecommunications US Apollo Global Management LLC InVentiv Health Inc. Life sciences US INC Research Holdings Inc. 3, 2, 1, - Americas Asia-Pacific EMEA LTM value PTM value Americas Asia-Pacific EMEA Total 4,921 4,583 Technology 7% 3% 5% 16% Oil and gas 1% 1% 2% 14% Consumer products and retail 6% 2% 3% 1% Diversified industrial products 3% 2% 4% 1% Life sciences 5% 1% 2% 8% Power and utilities 3% 2% 2% 7% Media and entertainment 4% 1% 1% 6% Automotive and transportation 1% 2% 2% 5% Banking and capital markets 2% 1% 2% 5% Others 9% 6% 5% 2% All sectors 5% 21% 28% 1% Capital Briefing

8 2.i. M&A: cross-border deal flow Key cross-border M&A deal flow (LTM to May 217) (Total = US$1.27t) N America to: W Europe $185b UK&I $58b Middle East $2b UK&I to: N America $15b W Europe $1b Africa $3b Middle East $3b W Europe to: N America $152b L America - $15b Russia, CIS and CSE - $9b Greater China and Mongolia to: N America $45b W Europe $31b Oceania $21b Japan to: N America $48b UK&I - $35b W Europe $1b L America to: N America $8b Russia, CIS and CSE - $1b Key >$1b >$5b >$1b Note: all figures are in US$. Cross-border M&A deal flow (LTM to May 217) (US$m) Target Acquiror # Africa SE Asia (including Korea) Greater China and Mongolia $ Russia, CIS and CSE W Europe India Japan Latin (excluding America UK&I) Middle East North America Oceania UK&I Inbound total Africa 1, ,972 1,577 3, , , ,253 24,284 69% SE Asia (including Korea) % versus PTM 1 6,468 9, , , ,17 4, ,237 29,546-2% Greater China and - 3,17 24, ,819-5, , ,537-7% Mongolia $ Russia, CIS and CSE ,589 2,919 8,684 3,17 8,845 1,48 11,687 1,625 1,759 1,313 45,226 42% W Europe (excluding UK&I) 594 4,498 3,757 2, ,371 1,267 9, , , , ,73 28% India 579 6,99 3,439 12,922 1,344-2, , ,131 85% Japan , ,835-88% Latin America , , ,377 1,194 19,22 1, ,915 36% Middle East , , ,615 2, ,149 5, % North America 6,898 14,88 44, ,716 1,686 48,191 7,961 12,311 16,211 5,56 14, ,679-12% Oceania 91 1,782 21,38-1, , ,142 1,212 1,576 34,156-17% UK&I 3,213 2,129 1, , ,264-3,268 58,6 3,611 1, ,332-49% Outbound total 14,516 4, ,78 21,14 265,685 7,22 117,13 15,56 37, ,511 16, ,527 1,268,539-4% % versus PTM 54% 54% -9% 82% -39% 13% 79% -26% -37% 18% 31% 11% -4% # Acquiror refers to acquiror s ultimate holding company. $ Greater China and Mongolia includes mainland China, Hong Kong, Macau, Mongolia and Taiwan. M&A analysis as at 1 June All Rights Reserved. Note: data is continually updated and therefore subject to change. Key >US$1b >US$5b >US$1b Intra-area cross-border deals 8 Capital Briefing

9 3. IPOs Executive summary This month recorded the strongest year-to-date(ytd) IPO activity in terms of proceeds, witnessing a significant year-on-year (YOY) increase in terms of both number of IPOs and proceeds. Asia-Pacific accounted for 5 of the top 1 deals this month. Two of the top three IPOs this month listed on Korea exchange. IPO activity continues to be steady in the Americas and EMEA region, as the investment environment improves. Oil and gas is expected to be one of the most active sector in the US as the improvement in oil prices and a large backlog of IPO candidates are likely to encourage companies to enter the public markets. Current state May 217 saw 119 deals raising US$17.3b, registering a YOY increase of 53% and 92% in terms of number of IPOs and proceeds respectively. This month recorded the strongest IPO activity YTD in terms of proceeds, on the back of 4 of the top 1 deals so far this year. Asia-Pacific continued to lead global IPO activity, with 72 deals raising US$8.5b, accounting for 61% and 49% of the global number of IPOs and proceeds respectively. Compared with May 216, the region registered a 95% and 214% increase by number of IPOs and proceeds respectively. While Greater China region contributed the highest in terms of number of deals, South Korea led by proceeds due to listing of Netmarble Games Corp. (US$2.3b) and ING Life Insurance Korea Ltd (US$1.b). The activity was steady in EMEA, with 28 deals raising US$3.9b. While the number of IPOs increased by 4%, proceeds saw an uptick of 8%. IPO activity continues to strengthen in the US with 18 deals raising US$3.8b in May 217. YOY, this was 2% and 38% more in terms of number of deals and proceeds respectively. The top two deals (by proceeds) for this month were: Netmarble Games Corp. raised US$2.3b in the largest South Korean IPO since 21. It aims to use the proceeds for M&As and raise its ranking in key markets to reach its goal of becoming a global top five game firm by 22. Kinder Morgan Canada Ltd. raised US$1.3b in the largest oil and gas IPO in Canada since 214. It aims to use the proceeds to pay down the parent company s debt. Environment and horizon Asia-Pacific will continue to dominate global IPO activity, led by Greater China, South Korea and Australia. There are several big IPOs, such as Asia Innovations Group, China Tower and Putian, that are expected to hit the market later this year. The number of Chinese technology IPOs is expected to reach a record high in 217 as a result of the faster China Securities Regulatory Commission (CSRC) IPO approval process. Also, companies are getting favorable valuations on the local exchanges and could save on the potential additional listing cost of a cross-border listing, which has resulted in an increase in technology IPOs on Chinese exchanges. According to CB Insights, China has a total of 46 private companies valued at more than US$1.b, the highest number outside the US. India is expected to have another strong year of IPO activity led by IPOs of former state-owned enterprises. The Government could raise close to US$3.b this year via IPOs. This is due to strong inflows in the market from both foreign and domestic investors, and relative outperformance of the Indian market compared with other emerging economies. The momentum will continue to build in the US IPO market, and we expect high levels of activity going forward. Apart from technology sector, the oil and gas sector is expected to be particularly active as the backlog has been building and oil prices have shown steady improvement, leading to more companies going for public listings. A majority of the IPOs in the backlog are related to oilfield services companies, and many of them are poised for significant growth over the next couple of years. We expect the demand for IPOs to remain strong this year in the UK after a steady start to 217. This is evident from the healthy pipeline of decent-sized companies, worth up to nearly US$35.b, looking to float. Investors seem to be supportive of the right companies coming to the market, which should strengthen confidence for issuers considering going public. In the Middle East, Egyptian authorities are in discussion with local and international investment banks to advise the Government on the IPOs of state-run companies. Their listing plans would broaden the ownership of companies and, as a result, bolster Egypt s capital markets and help the Government raise revenue. 9 Top 1 IPOs by proceeds, May 217 Issuer name Issuer location Sector Exchange Proceeds (US$m) Netmarble Games Corp. South Korea Technology Korea 2,336 Kinder Morgan Canada Ltd. Canada Oil and gas Toronto 1,297 ING Life Insurance Korea South Korea Insurance Korea 974 Ltd. Gardner Denver Holdings Inc. US Diversified New York 95 industrial products Antero Midstream GP LP US Oil and gas New York 875 IRB InvIT Fund India Automotive and transportation VolkerWessels B.V. Netherlands Real estate Munters AB Sweden Bombay 783 Euronext (Amsterdam) 625 Diversified Stockholm 516 industrial products China Everbright China Power and utilities Hong Kong 434 Greentech Ltd. Jiangsu Provincial Consumer Agricultural Reclamation & China Shanghai 351 products and retail Development Co. Ltd. IPO activity by area (YOY % change) (LTM to May 217 versus PTM to May 216) ; regional classification on the basis of issuer nationality. Asia-Pacific Proceeds -35% -25% -15% -5% -5% 5% 15% 25% EMEA 45% 2% -3% Number of deals Global Americas (including US) IPO activity by sector and area (% share of global proceeds) LTM to May 217 ; regional classification on the basis of issuer nationality. Note: because of rounding, percentages may not add up to total. Americas Asia-Pacific EMEA Total Banking and capital markets 1% 14% % 15% Technology 4% 6% 3% 14% Real estate 2% 7% 2% 11% Automotive and transportation 1% 6% 2% 1% Life sciences 1% 5% 3% 9% Consumer products and retail 2% 5% 1% 9% Diversified industrial products 1% 5% 1% 8% Oil and gas 4% 1% 2% 7% Power and utilities % 2% 3% 5% Others 3% 7% 3% 13% Total 2% 58% 22% 1% US Capital Briefing

10 4. Loans Executive summary Loan volume in May fell both in Europe and the US due to a decline in refinancing activities along with demand-supply imbalance. The European loan issuance has been inclining toward the US-style covenant-lite high-yield bond. Global market narrowed the demand-supply gap to surplus after a whopping $15.3b deficit in January. European repricing activity is dominated by issuers that participated at the onset of the repricing wave last year and are now jumping back for further reductions. The emergence of cov-lite loans has allowed the asset class to win back a lot of lost territory. Current state In May, US$3.2b of loans were issued in the US and 4.4b in Europe, taking the YTD global issuance to US$361b, up 163% from the same period in 216. Monthly volume fell in May, making it a low point in 217 for both regions as refinancing activity, which had been driving volumes from the beginning of the year, tailed off. Opportunistic deals, including refinancings and dividend recaps, have been contributing a bigger share in Europe (67%) than the US (51%) as per the new-issue volumes YTD. Both regions are driven by issuers as demand is way higher than supply. European loan issuance has been inclining towards US-style high-yield bond incurrence covenants instead of the typically more restrictive covenant package. In 217, the share of cov-lite volume in Europe (72%) has surpassed that of the US (7%), substantially up from last year in both regions. The loan market is finally narrowing the demand-supply gap to surplus after a whopping deficit in January, where demand exceeded supply by US$15.3b. The primary reason for the market shift is the dramatic dip in refinancing activity in May. In May, the repricing activity was bolstered by issuers that participated at the onset of the repricing wave last year and are now jumping back in as the deals soft coverage can be further extended. At the same time, 42% of repricings had undergone a price cut in 216. In China, syndicated interbank lending rates have become hurdles in the loan market, shutting out potential lenders and leaving borrowers facing higher interest costs. Meanwhile, Japanese lenders are showing greater interest in loans for overseas borrowers as they search for yield in a negative interest rate environment. Yields-to-maturity are at or near record lows for both regions. the average clearing yield for single-b rated term loans was unchanged in the US at 5.24%, and tightened to 4.% from 4.5% in Europe. Environment and horizon Europe's loan market is continuing to differentiate between credits within similar rating categories and command similarly differentiated pricing. The European Parliament s new securitization, simple, transparent and standardized (STS) framework and the possibility of unlocking up to 15b of additional funding for the economy is expected to boost collateralized loan obligation (CLO) volumes. M&A by US high-grade companies and many acquisition loans are ramping up after a sparse first quarter as corporations unwilling to wait for the Trump Administration s delayed tax, trade or health care reforms push the button on new deals. Opportunities The emergence of cov-lite loans has allowed the asset class to win back a lot of territory lost to the capital market, and the in-market trend of loan-for-bond trade is expected to reduce in Europe. With the nervousness around the French elections falling away, positive economic data and strong stock markets, European borrowers are planning to secure better terms before event-driven financings hit the market in coming months. Global loan issuance by industry, YTD May 217 Source: Thomson ONE. Global investment-grade loans (US$b) Source: Thomson ONE Q15 2Q15 3Q15 4Q15 1Q16 2Q16 3Q16 4Q16 1Q17 QTD May Proceeds (LHS) *Data until 31 May 217. Global high-yield loans (US$b) Source: Thomson ONE. 1, Top arrangers ranking, YTD May 217 (US$b) Source: Thomson ONE. Number of issues (RHS) 1Q15 2Q15 3Q15 4Q15 1Q16 2Q16 3Q16 4Q16 1Q17 QTD May *Data until 31 May 217. Proceeds (LHS) Number of issues (RHS) Proceeds Issues Bank of America Merrill Lynch JP Morgan Citi Mitsubishi UFJ Financial Group Deutsche Bank , 2, 1, Government and agencies Real estate Consumer products and services Health care Proceeds (US$b) All loans by region, YTD May 217 (US$b) Source: Thomson ONE. Market share Proceeds Issues Americas 63.4% ,573 1 High technology Consumer staples Financials EMEA 21.1% Asia-Pacific 15.5% ,343 Capital Briefing

11 5. Bonds Executive summary Global high-yield activity rose on a monthly basis in May, with an increase in the US and a decline in Europe. Despite the monthly volume disappointments, good market conditions persisted due to strong demand. A slowdown in the European high-yield was expected, as many bankers had pushed their pipelines ahead in April, owing to the French elections. Clearing yields for single-b rated bonds tightened further both in the US and Europe. New European Central Bank guidelines for calculating leverage is providing opportunities for sponsors. Current state Global high-yield activity rose on a monthly basis after a short decline in April. High-yield issuance was US$24b in the US and 3.7 in Europe, taking the YTD total global issuance to US$162b, up 32% compared with the same period last year. Although the European high-yield bond issuance is experiencing spiked growth, as the YTD volumes are 84% ahead of the same period last year, the US market is only 22% ahead. The high-yield bond market was dominated by refinancings and recaps, with only 9% used for M&A in Europe and 21% in US YTD. In Europe, the market saw monthly volume disappointments, but good market conditions persisted due to strong demand. The slowdown in the European high-yield was expected, as many bankers had pushed their pipelines ahead in April owing to the French elections. Also, the latter half of May is usually slow due to the earnings season. Issuance was 88% for debt refinancing, making it the first month with no issuance for M&A or Leveraged Buyout (LBO) since January 216. Back on trend, the Nordic bond market showed a strong appetite for new issuance. Many sponsor-backed issuers are taking advantage of the market to refinance their portfolio companies. The middle market is observing mispricing of risk. Competition from banks, alongside pressure from sponsors and debt advisors, is driving up leverage and lowering pricing, while pushing funds into ever-higher risk positions in debt structures. Clearing yields for single-b rated bonds tightened in the US to 6.52% in the three months to the end of May from 6.57% at the end of April, and yields tightened to 5.14% from 5.2% in Europe, the lowest yield since the first quarter of 21. Environment and horizon Lack of supply along with strong demand is leading deals to issue at the tighter end of guidance at longer tenors and through syndication. The European Central Bank updated the guidelines for total debt calculation for leverage purposes. It now includes all committed debt drawn or undrawn plus Payment In-Kind (PIKs) loans, shareholder loans and facilities permitted by documentation. Opportunities New European Central Bank guidelines for excluding high-yield from total debt when calculating leverage is providing opportunities for sponsors desperate for leverage to deliver returns. Similar US guidelines are also under review currently. Issuance is expected to pick up soon, as companies with callable bonds can take advantage of record-tight yields. Reverse Yankees should continue to highlight as it continues to be cheaper to issue euros in Europe and as many sterling issuances can be expected ahead of the noise of Brexit negotiations. Euro bond issuances Source: Thomson ONE US bond issuances Source: Thomson ONE Feb Mar Feb Mar Apr 16 Top 1 corporate bond issuers, YTD May 217 (US$b) Source: Thomson ONE. May Jun Jul Proceeds (US$b) (LHS) Apr 16 May Jun Jul Proceeds (US$b) (LHS) Aug Sep Oct Aug Sep Oct Nov Dec Jan Feb Mar Number of issues (RHS) Nov Dec Jan Feb Mar Number of issues (RHS) Apr May Apr May Issuer Nation Industry Proceeds Apple Inc US High technology 2.8 Microsoft Corp US High technology 17. Global bond issuance by industry, YTD 217 Source: Thomson ONE. Media and entertainment Retail Health care Materials Consumer products and services Consumer staples Real estate Telecommunications High technology Industrials Energy and power China Railway Corp China Industrials 14.5 Broadcom Corp US High technology 13.6 Verizon Communications Inc US Telecommunications 13.5 AT&T Inc US Telecommunications 13. Qualcomm Inc US Telecommunications 11. Becton Dickinson & Co US Health care 1.5 GE US Industrials 8.7 Petrobras Global Finance BV Netherlands Energy and power Proceeds (US$b) 11 Capital Briefing

12 Appendices

13 Appendix A Global PE fundraising activity Global PE fundraising (in US$b) $7 Commitments (US$b) Number of funds 1,2 $6 1, $5 8 $4 6 $3 $2 4 $1 2 $ YTD 217 Source: Preqin Dry powder buyout funds by region (in US$b) North America Asia-Pacific and rest of world Europe Asia-Pacific and rest of world as percentage of total $6 16% $5 14% 12% $4 1% $3 8% $2 6% 4% $1 2% $ YTD 217 % Source: Preqin 13 Private Equity Capital Briefing

14 Appendix A Global PE acquisition activity PE acquisitions by year (in US$b) Value Number of deals $8 4, $7 3,5 $6 3, $5 2,5 $4 2, $3 1,5 $2 1, $1 5 $ YTD 217 Global PE value and volume quarterly trend (in US$b) Value Number of deals $14 7 $12 6 $1 5 $8 4 $6 3 $4 2 $2 1 $ 1Q12 2Q12 3Q12 4Q12 1Q13 2Q13 3Q13 4Q13 1Q14 2Q14 3Q14 4Q14 1Q15 2Q15 3Q15 4Q15 1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 14 Private Equity Capital Briefing

15 Appendix A Global PE acquisition activity by region Americas Americas PE acquisitions (in US$b) Value Number of deals $8 35 $7 $6 $5 $4 $3 $2 $ $ 1Q12 2Q12 3Q12 4Q12 1Q13 2Q13 3Q13 4Q13 1Q14 2Q14 3Q14 4Q14 1Q15 2Q15 3Q15 4Q15 1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 Americas PE acquisitions the top deals with disclosed financial terms in 217 Announcement date Completion date Company Sector Value (US$b) Acquiror 9-May-17 West Corp. Telecommunications $4.9 Apollo Global Management LLC 1-Feb-17 1-May-17 Aon Hewitt LLC (BPO platform) Technology $4.8 Blackstone Group LP 17-Mar May-17 USI Insurance Services LLC Insurance $4.3 KKR & Co. LP 13-Mar-17 DH Corp. Technology $3.4 Vista Equity Partners LLC 27-Mar-17 Diversey Inc. Consumer products $3.2 Bain Capital LLC 14-Mar Apr-17 Air Methods Corp. Transportation $2.5 American Securities LLC 12-Jan-17 1-Mar-17 Eagleford shale assets Oil and gas $2.1 Blackstone Group LP 17-Apr-17 EagleClaw Midstream Services LLC Utilities $2. Blackstone Group LP 14-Apr Apr-17 Ascend Learning, LLC Technology $2. Blackstone Group LP 17-Jan-17 Leslie's Poolmart Inc. Consumer products $1.8 L Catterton Management Co. LLC 15 Private Equity Capital Briefing

16 Appendix A Global PE acquisition activity by region EMEA EMEA PE acquisitions (in US$b) Value Number of deals $5 $45 $4 $35 $3 $25 $2 $15 $1 $5 $ 1Q12 2Q12 3Q12 4Q12 1Q13 2Q13 3Q13 4Q13 1Q14 2Q14 3Q14 4Q14 1Q15 2Q15 3Q15 4Q15 1Q16 2Q16 3Q16 4Q16 1Q17 2Q EMEA PE acquisitions the top deals with disclosed financial terms in 217 Announcement date Completion date Company Sector Value (US$b) Acquiror 12-Feb-17 Stada Arzneimittel AG Health care $5.6 Bain Capital LLC; Cinven Ltd. 5-Jun-17 Sponda Oyj Real estate $4.1 Blackstone Group LP 24-May-17 Q-Park NV Transportation $3.3 KKR & Co. LP 12-Apr-17 Refresco Group NV Food and beverage $2.2 PAI Partners SAS 2-May May-17 Affinity Water Ltd. Utilities $1.9 Allianz Capital Partners GmbH 22-Jan-17 2-Apr-17 Cerba HealthCare SASU Health care $1.9 Partners Group Holding AG 7-Mar-17 Allfunds Bank SA Finance $1.9 Hellman & Friedman LLC 2-Apr-17 2-Mar Mar-17 2-Apr Mar-17 Mubadala Development Co. PJSC PE portfolio Finance $1.8 Ardian SA Hansteen Holdings German and Dutch property portfolio Real estate $1.4 Blackstone Group LP Bradford & Bingley plc mortgage loans portfolio Finance $1.2 Blackstone Group LP 16 Private Equity Capital Briefing

17 Appendix A Global PE acquisition activity by region Asia-Pacific Asia-Pacific PE acquisitions (in US$b) Value Number of deals $3 14 $25 12 $2 $15 $ $5 2 $ 1Q12 2Q12 3Q12 4Q12 1Q13 2Q13 3Q13 4Q13 1Q14 2Q14 3Q14 4Q14 1Q15 2Q15 3Q15 4Q15 1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 Asia-Pac PE acquisitions the top deals with disclosed financial terms in 217 Announcement date 18-May-17 8-May-17 8-Jan Feb-17 Completion date Company Sector Value (US$) Acquiror Fairfax Media Ltd. (Bid No.3) Publishing $2.2 Hellman & Friedman LLC Fairfax Media Ltd. (Bid No. 2) Publishing $2.1 TPG Capital LP McDonald's China Carlyle Group LP; Management Ltd. Dining and lodging $2.1 CITIC Capital Holdings Ltd. Daesung Industrial Gases 24-Mar-17 Co. Ltd. Chemicals $1.6 MBK Partners Ltd. 26-Apr-17 Hitachi Kokusai Electric Inc. Telecommunications $1.5 KKR & Co. LP 13-Jan Mar-17 Hitachi Koki Co Ltd. Consumer products $1.2 KKR & Co. LP 25-Apr-17 Nord Anglia Education Inc. Professional services Canada Pension Plan $1.2 Investment Board Canada Pension Plan 28-Mar Mar-17 Bharti Infratel Ltd. Telecommunications $.9 Investment Board 21-May-17 E-Land Retail Co., Ltd. (home furnishing wholesale 21-May-17 division) Consumer products $.6 MBK Partners Ltd. 1-Feb-17 1-Feb-17 Hyundai Card Co., Ltd. Finance Affinity Equity Partners (HK) Ltd.; $.6 Carlyle Group LP 17 Private Equity Capital Briefing

18 Appendix A Global PE exit activity Global PE-backed exits by M&A value and volume quarterly trend (in US$b) Value Number of deals $14 35 $12 3 $1 25 $8 2 $6 15 $4 1 $2 5 $ 1Q12 2Q12 3Q12 4Q12 1Q13 2Q13 3Q13 4Q13 1Q14 2Q14 3Q14 4Q14 1Q15 2Q15 3Q15 4Q15 1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 Global PE-backed IPOs value and volume quarterly trend (in US$b) Value Number of deals $45 9 $4 8 $35 7 $3 6 $25 5 $2 4 $15 3 $1 2 $5 1 $ 1Q12 2Q12 3Q12 4Q12 1Q13 2Q13 3Q13 4Q13 1Q14 2Q14 3Q14 4Q14 1Q15 2Q15 3Q15 4Q15 1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 18 Private Equity Capital Briefing

19 Appendix A Global PE exit activity Americas Americas PE exits (in US$b) M&A value IPO value M&A volume IPO volume $9 $8 $7 $6 $5 $4 $3 $2 $1 $ 1Q12 2Q12 3Q12 4Q12 1Q13 2Q13 3Q13 4Q13 1Q14 2Q14 3Q14 4Q14 1Q15 2Q15 3Q15 4Q15 1Q16 2Q16 3Q16 4Q16 1Q17 2Q Americas PE exits top exits 217 Announcement or filing date Completion or priced date Company Sector Value (US$b) Sponsor Type 15-May-17 Patheon NV Health care $7.2 JLL Partners LLC M&A Angelo Gordon & Co. LP; 8-May-17 Tribune Media Co. Telecommunications $6.6 Oaktree Capital Group LLC M&A 6-Jan Jan-17 Invitation Homes Inc. Real estate $6.3 Blackstone Group LP IPO Thomas H. Lee Partners, LP; 9-May-17 West Corp. Telecommunications $4.9 Quadrangle Group LLC M&A 28-Mar-17 3-May-17 Antero Midstream GP LP Oil and gas $ Mar May-17 Warburg Pincus LLC; Trilantic Capital Management LP USI Insurance Services LLC Insurance $4.3 Onex Corp. M&A IPO 25-Apr Feb-17 9-Jan May Mar-17 AdvancePierre Foods Holdings Inc. Food and beverage $4.3 Oaktree Capital Group LLC M&A Gardner Denver Holdings Inc. Machinery $3.9 KKR & Co. LP IPO Surgical Care Affiliates Inc. Health care $3.5 TPG Capital LP M&A 19-Dec Jan-17 Jagged Peak Energy Inc. Oil and gas $3.2 Quantum Energy Partners IPO 19 Private Equity Capital Briefing

20 Appendix A Global PE exit activity EMEA EMEA PE exits (in US$b) M&A value IPO value M&A volume IPO volume $7 $6 $5 $4 $3 $2 $1 $ 1Q12 2Q12 3Q12 4Q12 1Q13 2Q13 3Q13 4Q13 1Q14 2Q14 3Q14 4Q14 1Q15 2Q15 3Q15 4Q15 1Q16 2Q16 3Q16 4Q16 1Q17 2Q EMEA PE exits top exits 217 Announcement or filing date Completion or priced date Company Sector Value (US$b) Sponsor Type 2-Jun-17 Logicor Europe Ltd. Transportation $13.8 Blackstone Group LP M&A 15-May-17 Bureau van Dijk Electronic Publishing BV Technology $3.3 EQT Partners AB M&A 7-Feb-17 3-Apr-17 Mauser Group NV Chemicals $2.3 Clayton, Dubilier & Rice LLC M&A 2-May May-17 Affinity Water Ltd. Utilities $1.9 Partners Group Holding AG M&A 22-Jan-17 2-Apr-17 Cerba HealthCare SASU Health care $1.9 PAI Partners SAS M&A 7-Mar-17 Allfunds Bank SA Finance $1.9 AWAS Aviation Capital Limited and Awas Aviation Capital Designated Activity 24-Apr-17 Company Finance $1.8 Warburg Pincus LLC; General Atlantic LLC Canada Pension Plan Investment Board-CPPIB; Terra Firma Capital Partners Ltd. M&A M&A 18-Apr-17 Weetabix Ltd. Food and beverage $1.8 Baring Private Equity Asia Ltd. M&A 14-Mar-17 Kemble Water Holdings Ltd. Utilities $1.6 6-Mar Mar-17 Neinor Homes SAU Real estate $1.4 Macquarie Infrastructure & Real Assets Pty Ltd. Lone Star Global Acquisitions Ltd. M&A IPO 2 Private Equity Capital Briefing

21 Appendix A Global PE exit activity Asia-Pacific Asia-Pacific PE exits (in US$b) M&A value IPO value M&A volume IPO volume $45 $4 $35 $3 $25 $2 $15 $1 $5 $ 1Q12 2Q12 3Q12 4Q12 1Q13 2Q13 3Q13 4Q13 1Q14 2Q14 3Q14 4Q14 1Q15 2Q15 3Q15 4Q15 1Q16 2Q16 3Q16 4Q16 1Q17 2Q Asia-Pacific PE exits top exits 217 Announcement or filing date Completion or priced date Company Sector Value (US$b) Sponsor Type 16-Mar Apr-17 Alinta Holdings Utilities $3.1 TPG Capital LP M&A 23-Mar Apr-17 ING Life Insurance Korea Ltd. Insurance $2.4 MBK Partners Ltd. IPO 28-Feb Apr-17 USJ Co Ltd. Leisure and recreation $2.3 Goldman Sachs Capital Partners; MBK Partners Ltd. M&A 24-Feb Mar-17 Daesung Industrial Gases Co. Ltd. Chemicals $1.6 Goldman Sachs Capital Partners M&A 5-Jan Mar-17 China Modern Dairy Holdings Ltd. Agribusiness $1.5 CDH China Holdings Management Co. Ltd.; KKR & Co. LP M&A 22-Feb Mar-17 Sushiro Global Holdings Ltd. Dining and lodging $.9 Permira Ltd. IPO 23-May-17 8-Feb Mar-17 Macromill Inc. 6-Apr-17 6-Apr-17 Integrated Clinical Oncology Network Pty Ltd. Health care $.7 Quadrant Private Equity Pty Ltd. M&A Professional Services $.7 Bain Capital LLC IPO Zhejiang Uniview Technologies Co. Ltd. Technology $.5 Bain Capital LLC M&A 27-Feb May-17 Crystal Orange Hotel Holdings Ltd. Dining and lodging $.5 Carlyle Group LP M&A 21 Private Equity Capital Briefing Capital Briefing

22 Appendix A M&A activity monthly flash Volume Value Volume Value Calendar YTD YTD % Calendar YTD YTD % LTM LTM % LTM LTM % J F M A M J J A S O N D J F M A M J J A S O N D J F M A M J J A S O N D J F M A M J J A S O N D J F M A M 217 (to May17) vs. 216 (to May 16) 217 (to May 17) vs. 216 (to May 16) LTM (to May17 vs. PTM (to May 16) LTM (to May 17) vs. PTM (to May 16) M&A activity by areas and regions Global 15,131-3% 1,215,912 2% 36,27-4% 3,525,769-8% Americas 5,613-4% 659,815-3% 13,26-9% 2,66,378-5% Canada % 79,973-17% 2,278-14% 219,448-2% MeCAR 9 % 6,973-27% % 17,195-38% SA region 37-15% 24,561-22% % 76,563-1% US 4,816 3% 58,793-3% 1,933-6% 1,884,368-5% EMEA 5,645-3% 478,766 21% 12,991-2% 1,259,147-2% Africa 273-3% 13,589-36% 588-9% 39,997 2% BeNe 374 6% 52,513 26% 886 1% 13,657-4% CIS % 8,627-3% 825-6% 6,647 12% CSE % 11,84-22% % 47,534 1% FraLux % 11,562 8% 2,294-2% 188,5 15% GSA 1,19 28% 14,58-34% 2,473 7% 254,349-1% Israel % 19, % 261 % 36,373-33% Mediterranean 673 8% 1, % 1,47-3% 175,67 11% MENA % 22, % % 82, % Nordics 659 6% 14,37-47% 1,439 11% 62,738 8% UK&I 1,365-12% 93,881 35% 3,529-2% 332,425-23% Asia-Pacific 5,577 1% 338,661-21% 13,94 % 1,28,718-12% ASEAN 77-1% 2,629-43% 1,84 3% 7,564-9% Greater China 2,278 11% 196,381-3% 5,885 7% 583,484-24% India 555 2% 31,83 72% 1,15-13% 83,325 67% Japan 1,353 3% 52,929-9% 3,177 2% 178,857 3% Korea % 24,25-1% 1,22-25% 61,152-8% Oceania 634-3% 41,316 5% 1,655-2% 113,348 43% M&A activity by sectors Aerospace and defense 132-1% 15,697 51% 351-6% 36,722 1% Automotive and transportation 1,75 3% 1,414-22% 2,54-1% 231,476-24% Banking and capital markets 96-11% 13,12-2% 2,174-12% 284,164-3% Consumer products and retail 2,136-8% 17,793 3% 5,195-6% 433,846-25% Diversified industrial products 2,17 1% 143,361-38% 4,911 % 451,822-12% Government and public sector 273 % 5,338-28% 68-9% 27,62 8% Insurance 435-3% 35,38-16% 1,25-1% 131,532-34% Life sciences 98-5% 154,314-29% 2,379-5% 39,598-35% Media and entertainment 955-9% 41,671-23% 2,34-11% 233,671 17% Mining and metals 817-1% 33,784-25% 2,52-4% 17,553-23% Oil and gas 573-2% 168,622 88% 1,44 1% 513,646 82% Other sectors 1,86 2% 43,175-29% 4,61-7% 118,517-22% Power and utilities 59 3% 71,391-22% 1,452 1% 259,714 13% Provider care 52 2% 26,571 62% 1,141-5% 67,197 38% Real estate 1,421-3% 84,256 2% 3,42 1% 239,899 11% Technology 4,358 6% 169,46-24% 9,861 % 589,9-17% Telecommunications 293 4% 68,351 92% 78-5% 298, % Wealth and asset management % 2,96 15% 941-7% 54,375 26% Regions M&A numbers represent a summation of domestic, inbound and outbound M&A activity involving the region. Sectors numbers represent involvement from either side, i.e., target or acquiror, except in the case of wealth and asset management, where only target-side involvement has been mapped. M&A analysis as at 1 June All Rights Reserved. Note: data is continually updated and therefore subject to change. 22 Capital Briefing

23 Appendix B M&A multiples and bid premium Median deal multiple EV / EBITDA LTM (to May 17) Global Americas Asia-Pacific EMEA PTM (to May 16) LTM (to May 17) PTM (to May 16) LTM (to May 17) PTM (to May 16) LTM (to May 17) PTM (to May 16) Aerospace and defense 16.2x 11.x 16.2x 9.7x 11.2x 14.1x 16.1x 13.8x Automotive and transportation 1.4x 8.9x 8.9x 1.3x 1.8x 9.9x 1.4x 8.4x Consumer products and retail 1.x 11.1x 1.7x 1.6x 1.6x 12.x 9.1x 1.5x Diversified industrial products 9.9x 9.6x 1.7x 1.7x 1.9x 1.5x 8.7x 9.2x Financial services 1.8x 1.4x 13.4x 12.3x 8.6x 7.9x 9.x 9.6x Government and public sector 8.4x 1.2x 8.2x 6.6x 1.5x 21.8x 7.8x 9.5x Health care 12.9x 11.2x 11.6x 11.2x 19.x 11.4x 11.1x 11.5x Life sciences 9.7x 12.5x 11.x 9.5x 1.3x 14.7x 9.x 11.5x Media and entertainment 6.9x 8.8x 9.8x 7.8x 6.1x 11.7x 6.9x 9.6x Mining and metals 9.x 8.2x 1.9x 8.2x 13.6x 6.5x 5.5x 11.2x Oil and gas 9.9x 9.6x 12.6x 11.3x 9.1x 1.5x 9.1x 7.9x Other sectors 9.9x 11.8x 12.8x 1.3x 15.7x 17.5x 7.9x 1.9x Power and utilities 11.6x 11.x 6.5x 9.x 11.2x 8.6x 12.2x 12.3x Real estate 11.x 9.7x 12.4x 1.2x 12.7x 9.3x 1.x 9.6x Technology 1.9x 11.3x 12.3x 13.1x 11.8x 11.4x 9.9x 1.3x Telecommunications 8.2x 7.1x 8.9x 7.4x 7.9x 9.3x 8.4x 6.3x Total 1.3x 1.3x 11.4x 1.4x 1.6x 11.x 9.x 9.8x Median bid premium to four-week stock price LTM (to May 17) Global Americas Asia-Pacific EMEA PTM (to May 16) LTM (to May 17) PTM (to May 16) LTM (to May 17) PTM (to May 16) LTM (to May 17) PTM (to May 16) Aerospace and defense 37% 18% 5% 14% 3% 31% 31% 15% Automotive and transportation 19% 15% 28% 21% 19% 13% 8% 9% Consumer products and retail 18% 23% 28% 32% 16% 17% 15% 27% Diversified industrial products 23% 19% 27% 24% 23% 17% 2% 24% Financial services 19% 26% 26% 3% 16% 1% 15% 13% Government and public sector 27% 27% 31% 44% 16% 28% 23% 16% Health care 28% 32% 39% 43% 17% 22% 12% 17% Life sciences 21% 14% 22% 34% 21% 1% 23% 11% Media and entertainment 23% 29% 25% 33% 21% 21% 16% 3% Mining and metals 2% 27% 18% 36% 22% 25% 19% 14% Oil and gas 25% 19% 34% 31% 19% 19% 36% 14% Other sectors 13% 21% 17% 27% 5% 14% 11% 22% Power and utilities 24% 23% 17% 25% 29% 18% 16% 27% Real estate 25% 15% 26% 15% 25% 16% 19% 1% Technology 25% 23% 34% 34% 19% 16% 15% 19% Telecommunications 11% 24% 43% 29% 9% 27% 1% 15% Total 22% 23% 3% 31% 19% 17% 17% 18% Deal multiples greater than 3x and bid premium greater than 1% have been excluded from calculation of median. M&A analysis as at 1 June All Rights Reserved. Note: data is continually updated and therefore subject to change. 23 Capital Briefing