Canadian Technology Review

Canaccord Genuity is the global capital markets group of Canaccord Genuity Group Inc. (CF : TSX). The recommendations and opinions expressed in this

research report accurately reflect the research analyst’s personal, independent and objective views about any and all the companies and securities that

are the subject of this report discussed herein.

Technology

Canadian Equity Research

30 September 2016

INSIDE RESEARCH UNIVERSE ----------------------------------------------- 4

RECENT TECHNOLOGY NEWS ------------------------------------- 6

CANADIAN TECHNOLOGY WATCH LIST -------------------------- 8

WATCH LIST COMPANY IN FOCUS -------------------------------11

Robert Young (Analyst), Canaccord Genuity Corp. (Canada) 1.416.869.7341 [email protected]

Kevin Wright (Analyst), Canaccord Genuity Corp. (Canada) 1.416.869.7294 [email protected]

Doug Taylor (Analyst), Canaccord Genuity Corp. (Canada) 1.416.867.6101 [email protected]

#TECH – Who are you? I really want to know.

#TECH - Canadian Technology Review is a bi-weekly publication summarizing the

technology space from the Canadian Investor point of view.

Making up a little ground. Canadian markets were mixed as the S&P/TSX showed

positive performance for the week, gaining +0.4% while the S&P/TSX-V shed -1.5%,

which may indicate that risk appetite has not fully materialized. Events south of the

border and around the globe continue to impact Canadian markets amid the presidential

election and macro events. The tech sector largely outperformed the markets as

investors may be starting to redeploy capital towards the sector. We have been calling for

our flight to quality thesis to materialize and saw some evidence this week that our so

called “second tier” tech names could finish H2/16E strongly. That said, investors

remain comfortable with high valuations for top quality companies. Kinaxis (+7.3%)

remains among the highest quality names in our universe, but Solium (+2.6%) and

Halogen (+2.0%) outperformed the market which gives us confidence that our thesis is

materializing albeit later than we expected at the end of 2015.

Technology stocks under coverage broadly outperformed the market with again

significant divergence between top and bottom performers. The top performer this week

was INNOVA Gaming (+16.4%) followed by Redknee (+12.7%) and Kinaxis (+7.3%). At

the other end of the spectrum was another gaming name as Intertain shed 8.0% in the

week.

I’m going to need to see some ID. We returned from Sibos this week where there was

tremendous attention to digitalization of the banking industry with regulation, AML and

KYC a focus of numerous sessions. Canada’s FinTech ecosystem is healthy and Trulioo is

a leading global ID verification company that provides advanced analytics based on

information either from traditional sources such as public records and government data

or alternative ones like social login providers and social networks. Its identity bureau

covers 4 billion people in 50+ counties from more than 200 trusted sources.

GLOBAL TECHNOLOGY RESEARCH

BlackBerry: Exit of hardware business results in increased pro forma EPS estimates

2nd Annual Online Gaming Conference: Not rolling the dice

Descartes: On the road with management - business trends remain healthy

Salesforce: Thoughts on Twitter rumors

GVC Holdings: Delivering on bwin

Stride Gaming: Bingo winner

INVESTMENT THESIS

With the publishing of each #TECH in the back half of 2016 we are feeling a little more

confident that our flight to quality thesis is panning out. Admittedly it has taken a little

longer than we thought at the end of 2015 but seeing good quality tech companies

starting to rerate validates our belief that investors will start to pay a little more attention

to the likes of Solium (+2.6%) and Halogen (+2.0%) which have been outperformed by

high flying Kinaxis (+7.3%) over the last 12 months. While the risk trade has not returned

in full force, we think that a rotation from resource stocks into tech names in the back

half of 2016E could fuel more price appreciation in the underloved tech names of our

coverage universe; we continue to like Solium and Halogen in the second half.

For important information, please see the Important Disclosures beginning on page 21 of this document.

Figure 1: Index and stock price performance

Source: Bloomberg, Canaccord Genuity Research

Priced as of close on 29 Sept 2016, S&P TSX Materials and Health Care sub-indices 12mo total returns are 58% and (78%) respectively

67%

33% 29% 28% 23%18% 17% 13%

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Canadian Technology ReviewIndustry Overview

30 September 2016 2

Figure 2: SaaS vendor relative valuation

Source: FactSet, Canaccord Genuity Estimates

Priced as of close on 29 Sept 2016

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30 September 2016 3

RESEARCH UNIVERSE

Robert Young | Kevin Wright | Doug Taylor

Figure 3: Coverage universe



*UR: Under Review

Company Ticker Analys t Rat ing Target Price Market Cap

Cash /

share

ABSOLUTE SOFTWARE CORPORATION ABT DT BUY C$ 8.50 C$ 7.22 C$ 287 US$ 1.57

AVIGILON CORPORATION AVO DT/MW BUY C$ 22.00 C$ 8.80 C$ 382 US$ 0.48

BSM TECHNOLOGIES INC GPS DT BUY C$ 1.75 C$ 1.25 C$ 99 C$ 0.22

CELESTICA INC CLS RY BUY US$ 12.00 US$ 10.70 US$ 1,542 US$ 1.23

CGI GROUP INC GIB.A RY BUY C$ 70.00 C$ 62.73 C$ 19,383 C$ (5.26)

COMPUTER MODELLING GROUP CMG DT SELL C$ 8.00 C$ 9.84 C$ 779 C$ 0.95

DATAWIND INC DW KW UR* UR* C$ 1.23 C$ 27 C$ (0.43)

EVERTZ TECHNOLOGIES LTD ET RY BUY C$ 20.00 C$ 16.84 C$ 1,260 C$ 1.66

EXACTEARTH LTD XCT DT HOLD C$ 1.50 C$ 1.43 C$ 31 C$ 0.60

EXFO INC EXFO RY HOLD US$ 4.00 US$ 3.66 US$ 200 US$ 0.84

GAMING NATION INC FAN KW SPEC BUY C$ 1.50 C$ 0.61 C$ 29 C$ 0.19

HALOGEN SOFTWARE INC HGN RY BUY C$ 11.50 C$ 10.39 C$ 227 US$ 1.59

INNOVA GAMING GROUP INC IGG RY BUY C$ 3.50 C$ 1.35 C$ 28 US$ 0.36

KINAXIS INC KXS RY BUY C$ 70.00 C$ 66.17 C$ 1,714 US$ 4.43

NANOTECH SECURITY CORP NTS KW SPEC BUY C$ 2.00 C$ 1.04 C$ 56 C$0.04

NYX GAMING GROUP LTD NYX KW BUY C$ 5.00 C$ 1.96 C$ 213 C$ (2.75)

PERK INC PER KW BUY C$ 9.00 C$ 2.40 C$ 69 US$ 1.43

REDKNEE SOLUTIONS INC RKN RY HOLD C$ 1.75 C$ 2.40 C$ 260 US$ (0.12)

SHOPIFY INC SHOP RY/RD BUY US$ 44.00 US$ 42.96 US$ 3,776 US$ 2.05

SANDVINE CORP SVC RY BUY C$ 3.75 C$ 2.90 C$ 420 US$ 1.05

SOLIUM CAPITAL INC SUM RY BUY C$ 8.50 C$ 7.35 C$ 365 C$1.51

TIO NETWORKS CORP TNC KW BUY C$ 2.50 C$ 2.14 C$ 198 C$0.02

URTHECAST CORP UR DT SPEC BUY C$ 2.25 C$ 1.05 C$ 109 C$ (0.10)

WI-LAN INC WIN DT SPEC BUY C$ 3.75 C$ 2.07 C$ 247 US$ 0.86


30 September 2016 4

Figure 4: Upcoming events


DateTickerCompany PeriodEventApr 24BETS.B SEBetsson AB Q1 2015Q1 2015 Earnings ReleaseApr 27AAPL USApple Inc Q2 2015Q2 2015 Earnings ReleaseApr 27PTEC GBPlaytech Plc Q1 2015Q1 2015 Trading UpdateApr 27-May 1-Interop -ConferenceApr 28IBM USInternational Business Machines Corp Y 2015Annual General MeetingApr 28OTC CNOpen Text Corp Q3 2015Q3 2015 Earnings ReleaseApr 28TWTR USTwitter Inc Q1 2015Q1 2015 Earnings ReleaseApr 29GIB/A CNCGI Group Inc Q2 2015Q2 2015 Earnings ReleaseApr 29CSU CNConstellation Software Inc/Canada Q1 2015Q1 2015 Earnings ReleaseApr 29MSFT USMicrosoft Corp Y 2015Analyst BriefingApr 29NXPI USNXP Semiconductors NV Q1 2015Q1 2015 Earnings ReleaseApr 29UNIB SEUnibet Group Plc Q1 2015Q1 2015 Earnings ReleaseApr 29WIN CNWi-LAN Inc Q1 2015Q1 2015 Earnings ReleaseApr 29-May 1-Microsoft Build -ConferenceApr 30BDC USBelden Inc Q1 2015Q1 2015 Earnings ReleaseApr 30CSU CNConstellation Software Inc/Canada Y 2015Annual General MeetingApr 30LNKD USLinkedIn Corp Q1 2015Q1 2015 Earnings ReleaseApr 30NOK1V FHNokia OYJ Q1 2015Q1 2015 Earnings ReleaseApr 30-May 2-BibleTech -ConferenceMay 1EBAY USeBay Inc Y 2015Annual General MeetingMay 4GXI CNGuestLogix Inc Q1 2015Q1 2015 Earnings ReleaseMay 5AVO CNAvigilon Corp Q1 2015Q1 2015 Earnings ReleaseMay 4-6-TechCrunch Disrupt -ConferenceMay 6CTY CNCalian Technologies Ltd Q2 2015Q2 2015 Earnings ReleaseMay 6KXS CNKinaxis Inc Q1 2015Q1 2015 Earnings ReleaseMay 6RKN CNRedknee Solutions Inc Q2 2015Q2 2015 Earnings ReleaseMay 7HGN CNHalogen Software Inc Q1 2015Q1 2015 Earnings ReleaseMay 7SW CNSierra Wireless Inc Q1 2015Q1 2015 Earnings ReleaseMay 7ZNGA USZynga Inc Q1 2015Q1 2015 Earnings ReleaseMay 11PUR CNPure Technologies Ltd Q1 2015Q1 2015 Earnings ReleaseMay 11UR CNUrtheCast Corp Y 2015Annual General MeetingMay 12GDDY USGoDaddy Inc Q1 2015Q1 2015 Earnings ReleaseMay 12-14-Gartner Supply Chain Executive Conference -ConferenceMay 13CSCO USCisco Systems Inc Q3 2015Q3 2015 Earnings ReleaseMay 13WIN CNWi-LAN Inc Y 2015Annual General MeetingMay 15*AYA CNAmaya Inc Q1 2015Q1 2015 Earnings ReleaseMay 15*IT CNIntertain Group Ltd Q1 2015Q1 2015 Earnings ReleaseMay 21INTC USIntel Corp Y 2015Annual General MeetingMay 28-29-Google I/O -Conference*Tentative date

Date Ticker Company Period Event

Sep 29 XAU CN GoldMoney Inc Y 2016 Annual General Meeting

Oct 3 BLOX US Infoblox Inc Y 2016 Analyst Meeting

Oct 4 ACLS US Axcelis Technologies Inc Y 2016 Investor & Analyst Day

Oct 4-7 - Dreamforce - Conference

Oct 4-7 - HR Technology Conference & Exposition - Conference

Oct 4 MU US Micron Technology Inc Q4 2016 Q4 2016 Earnings Release

Oct 4 CRM US salesforce.com Inc Y 2016 Investor Day

Oct 5 GPN US Global Payments Inc Q1 2017 Q1 2017 Earnings Release

Oct 5-6 - NeuLion Sports Media & Technology Conference - Conference

Oct 5 QHR CN QHR Corp Y 2016 Shareholders Meeting

Oct 6 SVC CN Sandvine Corp Q3 2016 Q3 2016 Earn ings Release

Oct 10-13 - K inaxis Train ing & User Conference - Conference

Oct 11 CUDA US Barracuda Networks Inc Q2 2017 Q2 2017 Earnings Release

Oct 11 HAWK US Blackhawk Network Holdings Inc Q3 2016 Q3 2016 Earnings Release

Oct 12 DWI CN DragonWave Inc Q2 2017 Q2 2017 Earnings Release

Oct 12 EXF CN EXFO Inc Q4 2016 Q4 2016 Earn ings Release

Oct 13 BV US Bazaarvoice Inc Y 2016 Investor Day

Oct 13 HPQ US HP Inc Y 2016 Analyst Meeting

Oct 17 IBM US International Business Machines Corp Q3 2016 Q3 2016 Earnings Release

Oct 18 CREE US Cree Inc Q1 2017 Q1 2017 Earnings Release

Oct 18 INTC US Intel Corp Q3 2016 Q3 2016 Earnings Release

Oct 19 XLNX US Xilinx Inc Q2 2017 Q2 2017 Earnings Release

Oct 20 ADS US Alliance Data Systems Corp Q3 2016 Q3 2016 Earnings Release

Oct 20 BETS.B SE Betsson AB Q3 2016 Q3 2016 Earnings Release

Oct 20 CLS CN Celes t ica Inc Q3 2016 Q3 2016 Earn ings Release

Oct 20 MSFT US Microsoft Corp Q1 2017 Q1 2017 Earnings Release

Oct 20 PYPL US PayPal Holdings Inc Q3 2016 Q3 2016 Earnings Release

Oct 23-26 - Money 20/20 - Conference

Oct 25 AKAM US Akamai Technologies Inc Q3 2016 Q3 2016 Earnings Release

Oct 25 JNPR US Juniper Networks Inc Q3 2016 Q3 2016 Earnings Release

Oct 26 FFIV US F5 Networks Inc Q4 2016 Q4 2016 Earnings Release

Oct 26 NCIT US NCI Inc Q3 2016 Q3 2016 Earnings Release

Oct 26 TXN US Texas Instruments Inc Q3 2016 Q3 2016 Earnings Release

Oct 27 GOOGL US Alphabet Inc Q3 2016 Q3 2016 Earnings Release

Oct 27 AAPL US Apple Inc Q4 2016 Q4 2016 Earnings Release

Oct 27 BLKB US Blackbaud Inc Y 2016 Investor Day

Oct 27 YFI CN Edgewater Wireless Systems Inc Y 2016 Annual General Meeting

Oct 28 HRS US Harris Corp Y 2016 Annual General Meeting

Nov 1 SQ US Square Inc Q3 2016 Q3 2016 Earnings Release


30 September 2016 5

RECENT TECHNOLOGY NEWS

Walking away from hardware. BlackBerry reported revenue that was below

expectations due to weak device sales and slightly lower than anticipated software

revenue. However, the company announced it intends to end all internal hardware

development and will outsource this function to partners which should lead to an

improved cost structure and working capital position. Management expects overall

software and licensing revenue will grow ~30% in fiscal 2017 which will likely

offset the continued decline in the similar margin SAF or services revenue.

BlackBerry also announced a licensing agreement with an Indonesia joint venture,

PT BB Merah Putih, which will source, distribute and promote BlackBerry-branded

devices that use the company’s secure Android software and applications. The

company will continue to look for opportunities to license its hub or network

operations centre (NOC) to OEMs for an annual fee in addition to other licensing

opportunities similar to one announced in Indonesia. Source: Exit of hardware

business results in increased pro forma EPS estimates

Gaining big league attention. Waterloo based Thalmic Labs has garnered

significant investor and media attention for its success with the Myo armband, a

wearable gesture control and motion control device that enables users to control

digital devices like computers, phones, and robotics, hands free. The Myo

harnesses “electromyography sensors” to detect the electrical activity generated

by muscle contraction and combines it with an axis-motion sensor that tracks the

movement and orientation of a person’s arm. Thalmic recently secured the second-

largest Series B venture capital investment in Canada’s recent history, receiving a

US$120 million financing led by Intel Capital, the Amazon Alexa Fund and Fidelity

Investments Canada. The announcement comes as promising news, emphasizing

that innovation in Canada is alive and well. To put the Thalmic Labs deal in context,

only the $165 million Series B financing of HootSuite Media in 2013 was larger,

making this investment the second-largest deal in CVCA’s Infobase. Thalmic is

focused on expansion having recently opened a new office in San Francisco and

hired Tara Kriese, the former Head of Marketing at Samsung Electronics America

as their chief marketing officer. Source: CVCA

Kicking the tires on Twitter. Salesforce and Disney have both emerged as potential

bidders for Twitter; however, the sale process is still in very early stages, according

to those familiar with the matter. The Wall Street Journal suggests that Salesforce

could benefit from the immense amount of data generated by Twitter’s 313 million

MAUs. Salesforce has spent roughly $700 million on artificial intelligence (AI)

related acquisitions over the past three years and has highlighted AI as a future

growth driver. The significant volume of data generated by Twitter could be used

towards training AI applications to recognize customer decision-making patterns.

Rumoured interest from Disney could be centred on Twitter’s live sports streaming

platform. In August, Disney acquired a 33% stake in BAMtech, the streaming-

media company Twitter is using to live stream sporting events. Disney also owns

ESPN, and Twitter’s streaming platform could attract an increasing number of

people that are cutting-the-cord. Source: WSJ

Making a spectacle. Snapchat has changed its name to Snap Inc and also

introduced a line of sunglasses with a built-in camera referred to as ‘Spectacles’ or

‘Specs’. The Specs come in three different colours and have a small camera built-

in to the upper left and right sides of the frames. Users tap a button near the left

camera to begin recording and the glasses will record up to 30 second segments.

The short video segments are stored on the frames until users transfer them to a

smartphone via Wi-Fi or Bluetooth. Once transferred, the videos will be saved in

the Memories section of the Snapchat app. The Specs have received comparisons

to the Google Glass and skepticism on mass adoption. However, as Wired

highlights, there are several differences from the Glass including a lower price


30 September 2016 6

point of $130, a more prominent recording light and a more appealing style that

could improve the chances of it actually catching on. Also the Specs are being

introduced at a time when video sharing is much more popular as live streaming

apps Periscope and Meerkat have only recently become popular. Source: Wired

Show me the money! Venture capital funds have attracted a significant inflow of

capital throughout 2016 as fundraising is on pace for its best year since the dot-

com era. The National Venture Capital Association stated that during the first half

of 2016 US venture funds received $22.9 billion in funding which is slightly below

the $28.2 billion received during all of 2015. Several notable raises throughout the

year include Andreessen Horowitz for $1.5 billion, Norwest Venture Partners for

$1.2 billion, Accel Partners for $2.0 billion and Founders Fund for $1.3 billion.

Some venture funds have attributed the rapid inflow to fear of a nearing market

correction. Another theory is the significant growth in university endowments,

which are traditionally a large contributor to venture capital. In 2015, the size of

university endowments reached $529 billion, a 53% increase from 2010. In any

case, we view the potential improved access to capital as a positive for technology

start-ups broadly. Source: Bloomberg

Adding technology and talent. Twilio announced its first acquisition since going

public at $15.00 in June of this year, the stock now trades at $68.62. The

company is acquiring the proprietary Web RTC media processing technologies and

the team that developed the Kurento Open Source WebRTC media server. Twilio

acquired all of the technology that was not open source, which enables video

conferencing, file transfers, chat and desktop sharing for large groups without

requiring the installation of a plug-in. By incorporating this technology, the

company expects that developers will be able to address the more advanced

needs of enterprise consumer video applications as well as those involved in

augmented reality, computer vision, robotics and IoT. As part of the transaction,

Twilio will add a new office in Madrid, Spain, the current location of the Kurento

team. The financial terms of the acquisition were not disclosed and the company

did not provide an update to its full year guidance. Sources: Twilio, Reuters

Beneficial for both sides. TechData announced it has reached an agreement with

Avnet to acquire its Technology Solutions business for $2.4 billion in cash and

2.785 million shares of TechData common stock. We estimate that the total

consideration of $2.6 billion values the transaction at 8.5-9.0x forward EBITDA.

TechData is now one of the largest wholesale distributors of technology products,

services and solutions. The deal will significantly enhance TechData’s global

presence and for Avnet, the divestiture will enable the company to invest towards

higher-growth verticals such as embedded solutions, IoT and critical digital

platforms. Investors on both sides reacted positively to the deal as TechData and

Avnet are up +21% and +3% since the transaction was announced. While

technology M&A has been very active in the US and internationally, we have yet to

see many significant Canadian names acquired despite the weaker CAD. In our

view, this could materialize in the final quarter of 2016 as attractive valuations

amid quality Canadian names could motivate potential bidders. Sources: CNBC,

WSJ


30 September 2016 7

CANADIAN TECHNOLOGY WATCH LIST

Our public company and private company watch lists are intended to highlight

companies that we track. We plan to write on one company in each #TECH - Canadian

Technology Review publication as a means to recap publicly available data, provide a

high level overview of products offered and markets served, and provide historical

financial performance. In our view, the breadth of public and private companies

available to include on the watch list may be an indicator of the interest and health of

the technology space.

Figure 5: Canadian technology public company watch list



% Change

Company Ticker Exchange

Market Cap

($M) LTM 1 month Descript ion

AgJunction AJX TSX 90.6 21.7% 9.0% Software and cloud services for precision agriculture

Contagious Gaming CNS TSX-V 4.9 (76.0%) (29.4%) B2B software provider for in-play sports lottery and online instant lottery

Cortex Business Solutions CBX TSX-V 20.2 15.4% 2.7% Cloud based enterprise eProcurement solutions and network

Destiny Media DSY TSX-V 11.6 (16.0%) (16.0%) Secure digital audio and video content distribution solutions

DEQ Systems DEQ TSX-V 26.5 117.6% 105.6% Table games technology provider for land-based casinos

Difference Capital DCF TSX 40.9 30.0% 0.0% Financial providing strategic investment and advisory to growth companies

Espial Group ESP TSX 75.1 (36.0%) 1.5% Digital TV and IPTV software and solutions

EXO U EXO TSX-V 10.7 (30.0%) 250.0% Cross-platform and operating system agnostic software

Flyht Aerospace Solutions FLY TSX-V 40.0 2.6% 11.1% Real time commercial aircraft data collection and communication

Goldmoney Inc XAU TSX-V 298.8 69.8% 1.1% Cost-effective technology that enables users to acquire, store and spend gold globally

Intermap IMP TSX 14.7 (74.1%) (19.4%) Location-based information solutions based on 3D digital terrain models

Kraken Sonar PNG TSX-V 10.2 (7.1%) (23.5%) Advanced sonar and acoustic velocity sensors for Unmanned Underwater Vehicles

Magor Corporation MCC TSX-V 3.2 (8.3%) (72.5%) Software based videoconferencing and collaboration

MEMEX OEE TSX-V 38.0 153.6% 4.4% Software driven IIoT communications platform

Neulion NLN TSX 310.8 77.4% (7.6%) Online video technology for distribution of live and on-demand content

POET Technologies PTK TSX-V 176.9 (11.2%) 1.3% Developed process to combine electronics and optics on GaAs chipset

Pollard Banknote PBL TSX 191.2 11.5% (4.5%) Provider of lottery and charitable gaming products

Poydras Gaming PYD TSX-V 25.9 50.0% 4.2% Machine leasing and provider of capital expenditure financing to gaming operators

ProntoForms PFM TSX-V 32.6 16.7% 9.4% Mobile application converts paper forms to mobile devices and tablets

Redline Communications RDL TSX 24.3 (38.7%) (23.8%) Manufacturer of rugged broadband wireless and M2M products

Slyce SLC TSX-V 9.4 (82.8%) 11.1% Visual product search and purchasing app

Smart Technologies SMA TSX 71.7 (30.2%) 0.7% White boards and software for education and corporate clients

Snipp Interactive SPN TSX-V 19.4 (65.1%) (9.1%) Provider of end-to-end, mobile-based promotions and customer loyalty programs

Spectra7 SEV TSX 45.7 (4.0%) (23.4%) Analog semiconductors for high bandwidth through thin cables

Sylogist SYZ TSX-V 230.6 60.6% (9.8%) IP solution provider for public and private companies

Symbility Solutions SY TSX-V 100.7 68.0% 6.3% Insurance claims SaaS provider serving property and health

TECSYS TCS TSX 117.1 5.7% (11.5%) Supply chain execution solutions for healthcare and high-volume distributors

Tinkerine Studios TTD TSX-V 2.0 (60.0%) (20.0%) Designs, manufactures and distributes 3D printers

Vixs Systems VXS TSX 19.7 (33.3%) 0.0% Global fabless semiconductor company focused on video/4K and HEVC


30 September 2016 8

Figure 6: Canadian technology private company watch list

Source: Bloomberg, CrunchBase, LinkedIn, Canaccord Genuity Research

Company HQ Descript ion Emp

Accedian Networks Montreal, QC Network optimization for mobile backhaul, business services and cloud connectivity 200

Aeryon Labs Waterloo, ON Designs, develops and manufactures high-end small Unmanned Aerial Systems (sUAS) 75

Aterica Waterloo, ON Provider of digital health measurement, monitoring and diagnostic products 20

Avvasi Waterloo, ON Video quality of experience and monetization 60

Beyond the Rack Montreal, QC Private online shopping club offering designer fashions and accessories for men and women 175

Nymi Toronto, ON Developed wearable technology that uses unique EKG data to provide password security 36

BLiNQ Networks Ottawa, ON Next-generation non-line-of sight (NLOS) wireless backhaul 50

BuildDirect Vancouver, BC Online manufacturer and wholesaler of building materials in Canada and the US 250

Clio Vancouver, BC Cloud-based law practice management software 170

Dejero Kitchener, ON Provides new organizations with the ability to upload data using available wireless connections 70

Desire2Learn Kitchener, ON Cloud-based learning solutions for K-12, higher education and Fortune 1000 companies 750

D-Wave Systems Burnaby, BC Designs and manufacturers quantum computing and superconducting electronics 105

Ecobee Toronto, ON Offers a Wi-Fi enabled smart thermostat using smartphones, tablets, or PCs 85

eSentire Cambridge, ON Cybersecurity provider for mid-sized enterprise 200

Financeit Toronto, ON Point-of-sale consumer financing platform 100

Flybits Toronto, ON Contextual cloud-based information delivery based on location, activity, and user profile 25

Global Relay Vancouver, BC Compliance messaging, management; archiving, audit and supervision for the financial sector. 300

Haivision Montreal, QC Solutions for streaming, encoding, recording, managing, and distributing video 150

HootSuite Vancouver, BC Social media system enabling campaign management across multiple social networks 1150

Igloo Software Kitchener, ON Provider of modern intranet and extranet solutions 125

IQmetrix Vancouver, BC Provides SaaS retail management solutions for the wireless industry in North America 225

Kik Interactive Waterloo, ON Messaging app with a combined mobile web platform 100

Lightspeed Montreal, QC Retail sales workflow solution offering next-gen POS systems for Mac and iOS 500

Magnet Forensics Waterloo, ON Software provider for digital forensic professionals 90

Miovision Kitchener, ON Provides meaningful solutions to real challenges facing today's traffic systems 100

Nulogy Toronto, ON Cloud-based supply chain management solution serving Fortune 500 clients 85

Nymi Toronto, ON Wearable authentication technology that uses ECGs for identification 35

PointClickCare Toronto, ON SaaS supply chain, billing and administrative processes for long term care providers 650

Real Matters Markham, ON Property information services provider for the property and casualty (P&C) insurance industry 800

Ross Video Iroquois, ON Manufacturer and provider of video equipment/software for TV broadcasting and live video production 575

ScribbleLive Toronto, ON Real-time engagement management to distribute and deliver engaging content 90

SHOES.com Vancouver, BC High growth ecommerce company with a broad selection of footwear 400

Solace Systems Ottawa, ON Messaging middleware appliances 125

Sonim Technologies San Mateo, CA Manufacturer of phones intended to withstand the harshest conditions 350

Teradici Vancouver, BC Develops PCoIP protocol solutions for desktop virtualization and enhanced network experience 225

Trulioo Vancouver, BC Provider of global ID verification software covering 4 billion people in over 50 countries 25

Vantrix Montreal, QC Content adaptation and optimization solutions to deliver media to wireless, broadband and cable 100

Vena Solutions Toronto, ON Cloud based enhancements to native MS Excel environments 100

Vidyard Kitchener, ON Video marketing and sales enablement platform 100

Visier Vancouver, BC Cloud-based HR data analytics with an emphasis on workforce intelligence 165

Vision Critical Vancouver, BC Provides platforms for online market research supporting over 650 brands worldwide 750

Wattpad Toronto, ON Alternative platform for both professional and amateur writers 120

Wealth Simple Toronto, ON Automated low cost wealth management advisor 20


30 September 2016 9

Figure 7: Watch list companies in focus

Date Company Ticker Company Description #TECH Link

17 Oct 14 Achievers Corp - Human capital management software provider - acquired by Blackhawk Network #TECH - What's Cooler Than Being Cool?

13 Nov 15 Aeryon Labs - Designs, develops and manufactures high-end small Unmanned Aerial Systems (sUAS) #TECH - These are not the drones you're looking for

06 Jul 16 Aterica Digital Health - Provider of digital health management, monitoring and diagnostic products #TECH - Brexit sandwich with peameal bacon

04 Sep 15 BuildDirect - Online manufacturer and wholesaler of building materials in Canada and the US #TECH - Getting back to business

03 Oct 14 Contagious Gaming CNS CN B2B software provider for in-play sports lottery and online instant lottery #TECH - Know When To Hold'Em

03 Oct 14 DEQ Systems DEQ CN Table games technology provider for land-based casinos - acquired by Scientific Games #TECH - Know When To Hold'Em

08 Aug 14 Desire2Learn - Cloud-based learning solutions for K-12, higher education and Fortune 1000 companies #TECH - Going All In

10 Apr 15 DraftKings - Daily fantasy sports operator #TECH - If you like football and you like fantasy...

27 Nov 15 Ecobee - Offers a Wi-Fi enabled smart thermostat using smartphones, tablets, or PCs #TECH - Check that bird's temperature

05 Sep 14 Espial Group ESP CN Digital TV and IPTV software and solutions #TECH - OTT Killed The Video Star

12 Feb 16 Evolution Gaming EVO SE B2B provider of live casino solutions #TECH - It's always darkest before the dawn

10 Apr 15 FanDuel - Daily fantasy sports operator #TECH - If you like football and you like fantasy...

22 Jul 16 Financeit - Point-of-sale consumer financing platform #TECH - Don't marry for money, it's cheaper to borrow

16 Sep 16 Goldmoney XAU CN Cost-effective technology that enables users to acquire, store and spend gold globally #TECH - That's gold, Jerry! Gold!

02 Sep 16 Igloo Software - Provider of modern intranet and extranet solutions #TECH - What's cooler than cool? Ice cold

24 Jul 15 Kik Interactive - Messaging app with a combined mobile web platform #TECH - This message will self-destruct in 5...4...3...

20 May 16 Kraken Sonar Systems PNG CN Designs and develops sonar and acoustic velocity sensors for military and commercial purposes #TECH - Do you hear what I hear?

13 Feb 15 Leander Games - Online gaming content aggregator and developer #TECH - Ragtop down so my hair can blow

05 Aug 16 Lightspeed - Retail sales workflow solution offering next-gen POS systems for Mac and iOS #TECH - See you in Boston next week

03 Jun 16 Magnet Forensics - Digital forensics software provider #TECH - Simmering but not at a full boil yet

24 Mar 16 MEMEX OEE CN Software driven IIoT communications platform #TECH - Skynet is becoming self-aware

12 Feb 16 Microgaming - Leading B2B gaming content provider #TECH - It's always darkest before the dawn

29 Jan 16 Miovision - Provides meaningful solutions to real challenges facing today's traffic systems #TECH - Ready...Set...Go!!!

08 May 15 NeuLion NLN CN Online video technology for distribution of live and on-demand content #TECH - Brother can you spare a quarter?

27 Feb 15 Nulogy - Cloud-based supply chain management solution serving Fortune 500 clients #TECH - I'd Rather Be On A Beach

13 Feb 15 Odobo - B2B provider of a HTML5 game development platform and content marketplace #TECH - Ragtop down so my hair can blow

03 Oct 14 Pollard Banknote PBL CN Provider of lottery and charitable gaming products #TECH - Know When To Hold'Em

03 Oct 14 Poydras Gaming PYD CN Machine leasing and provider of capital expenditure financing to gaming operators #TECH - Know When To Hold'Em

06 May 16 Ross Video - Provider of video equipment and software solutions for TV broadcasting and live video production #TECH - In living colour

05 Jun 15 Scribble Technologies - Real-time engagement management to distribute and deliver engaging content #TECH - Running with the bulls

08 Jul 16 SHOES.com - High growth ecommerce company with a broad selection of footwear #TECH - We did not enjoy our Brexit sandwich

28 Nov 14 Slyce SLC CN Visual product search and purchasing app #TECH - Let's Talk Turkey

22 May 15 Snipp Interactive SPN CN Provider of end-to-end, mobile-based promotions and customer loyalty programs #TECH - Bye Mr. Letterman, thank you and good night

31 Oct 14 TECSYS TCS CN Supply chain execution solutions for healthcare and high-volume distributors #TECH - The Crab Cakes Are Overcooked

30 Jan 15 Tinkerine Studios TTD CN Designs, manufactures and distributes 3D printers #TECH - You're So Multidimensional

08 Apr 16 Vidyard - Video marketing and sales enablement platform #TECH - Video made the internet star

17 Oct 14 Visier - Cloud-based HR data analytics with an emphasis on workforce intelligence #TECH - What's Cooler Than Being Cool?

19 Sep 14 Wanted Technologies - Cloud-based real-time intelligence for the talent marketplace - acquired by CEB #TECH - A Kinder, Gentler, HR Hand

07 Aug 15 Wattpad - Alternative platform for both professional and amateur writers #TECH - The importance of being well read

Source: Company Reports, Canaccord Genuity Research


30 September 2016 10

WATCH LIST COMPANY IN FOCUS

Trulioo

Figure 8: Trulioo profile

Trulioo

Headquarters: Vancouver, BC

Employees: 25–50

CEO & Co-founder: Stephen Ufford

Director & Co-founder: Tanis Jorge

Founded: 2011

Funding to date: C$25 million

Identity database coverage: 4 billion people in over 50 countries

Source: Company website, CrunchBase, LinkedIn, Canaccord Genuity Research

Company overview. Based out of Vancouver, Trulioo is a leading global ID verification

company that provides advanced analytics based on information either from

traditional sources such as public records and government data or alternative ones

like social login providers and social networks. Its identity bureau covers 4 billion

people in over 50 counties from more than 200 trusted sources. Its coverage also

includes important emerging markets, specifically ‘BRIC’ countries where e-commerce

has been experiencing rapid growth. The flagship electronic ID verification (eIDV)

product, GlobalGateway, was recently ranked first in the “Verification Tools/Identify

Checks” category among all RegTech solutions by Market FinTech. This solution has

been deployed by a broad range of customers worldwide in different industries

including financial institutions and governments to remain compliant with anti-money

laundering (“AML”), know-your-customer (“KYC”) and counter terrorism financing

(“CTF”) regulations.

Trulioo was founded in 2011 by Stephen Ufford and Tanis Jorge. Both have extensive

experience managing data-driven business through the development and successful

exit of three start-ups (iQuiri.com, NCB Data and Pharos Global). The company has

raised roughly C$25 million to date from a well-recognized group of venture capital

investors. Trulioo deployed some of this capital towards the acquisition of Global Data

Company, a Melbourne-based leading electronic cross-border identity verification

company. The strategic acquisition has opened the door for Trulioo to expand in the

AML compliance space, which has a sizable addressable market. In December, 2015,

it raised C$16.1 million from American Express Ventures alongside previous investors

including BDC Capital, Blumberg Capital and Tenfore Holdings. Not only was this one

of Canada’s larger FinTech VC financings in 2015, but it also positioned Trulioo to

accelerate the expansion of its flagship product, GlobalGateway, across the global

banking industry.

Growing demand for effective AML, KYC and eIDV technology. The global AML

regulatory environment for financial institutions has become significantly more

challenging over the past 10-15 years. The enactment of the US Patriot Act in October

2001, in response to the September 11 terrorist attacks, strengthened measures to

prevent, detect and prosecute intentional money laundering and financing of

terrorism. Since then, there have been several other forms of legislation requiring new

or enhanced AML and KYC procedures. These include the Foreign Corrupt Practices

Act (US), the Dodd Frank Act (US), FATCA (US), the Bribery Act (UK), the Modern Day

Slavery Act (UK), EMIR (EU) and MiFID (EU). The steady increase in AML-related

regulations has created much more complexity for banks, resulting in higher



compliance costs while failure to comply with AML standards can result in heavy

penalties. In 2012, HSBC Holdings agreed to pay $1.92 billion in fines to US

authorities for allowing itself to be used to launder drug money out of Mexico. In

2014, JP Morgan was required to pay a $1.7 billion penalty for failure to report

suspicious activity related to the Bernie Madoff fraud. Collectively, the penalties are

significant as Bain & Co estimates the cost of fines for banks globally across

governance, risk and compliance in 2016 exceeded $200 billion.

The regulatory burden extends beyond banks to their commercial clients. Corporations

opening new accounts or that need to revise signatories, mandate holders or

beneficial owners of existing accounts are required to provide information to banks

that enables the fulfilment of KYC procedures. Companies also need to complete due

diligence on their own third party relationships to manage any potential AML risks that

may exist. As corporations expand and become more geographically diverse, the

number of customers, suppliers, distributors and partners expands rapidly. The

aggregation of data and completion of due diligence procedures on a wide range of

third parties can become labour intensive and time consuming, especially when in

foreign jurisdictions where some information can be inaccessible. For companies

working with several different financial institutions, the requirements can be even

more onerous as many banks have different risk management procedures that may

vary by jurisdiction. Collecting, analyzing and relaying information from this large pool

of fragmented data is creating delays, inflating compliance costs and is driving

demand for identity verification software that can streamline this process.

Figure 9: Global demand for AML software Figure 10: Where US bank CIOs intend to increase spending in 2016

Source: Research and Markets, Canaccord Genuity Research Source: SourceMedia - Survey of 50 US Bank CIOs, Canaccord Genuity Research

The global demand for regulatory, compliance and governance software is expected to

reach $118.7 billion by 2020E. While the AML software market is a smaller

component, valued at $690 million in 2016E, it is forecast to grow at a CAGR of 11%

through 2020E. The size of this global opportunity has attracted a growing subset of

FinTech start-ups focused on improving the efficiency of regulatory compliance

procedures. Regulatory technology or ‘RegTech’ start-ups broadly aim to enhance the

agility, speed, integration and analytics of existing regulatory processes and solutions.

There has been strong RegTech development to date, most notably in the UK as

nearly half of the companies listed below are based there. This trend could accelerate

following the UK Financial Conduct Authority’s (FCA) recent feedback statement (FS

16/4) which stated it intends to concentrate efforts on increasing engagement and

collaboration with the RegTech community. While RegTech is still at an early stage of

the investment lifecycle, we would be unsurprised if the sub-segment attracts

significantly more venture capital attention over the near-to-medium term.

$690$766

$850$944

$1,047

$0

$250

$500

$750

$1,000

$1,250

2016E 2017E 2018E 2019E 2020E

15%

15%

21%

21%

23%

25%

28%

28%

35%

37%

38%

45%

49%

57%

58%

77%

0% 10% 20% 30% 40% 50% 60% 70% 80%

Desktops

Internal investment mgmt.

Servers

Core banking

Networks

Commercial banking

Retail investing software

Lending platforms

Branch technology

Payment software

Mobile device mgmt.

Online banking

Compliance

Mobile banking

Data and analytics

Security



Figure 11: Sample of existing global RegTech companies

Source: Chappuis Halder & Co, Canaccord Genuity Research

Figure 12: Level of adoption taking place by potential to solve defined business problems

Source: Deloitte, Canaccord Genuity Research

Differentiating with a comprehensive identity verification solution. Trulioo’s central

eIDV solution, GlobalGateway, is a bank-grade product that facilitates frictionless ID

verification for businesses and satisfies international AML and KYC requirements. It

can verify more than 4 billion people in over 50 countries by leveraging 200+ trusted

data sources simultaneously, which Trulioo states is the widest coverage available in

the market. These data sources include credit bureaus, electoral rolls, government

issued data, telephone/utility records, social login providers and social networks.

GlobalGateway verifications are completed in 1-5 seconds and provide users with a

comprehensive set of match information including first and last name, national ID

address, date of birth and telephone number. Following the verification, the product

includes a verification results matrix, within the GlobalGateway portal, that displays

the match results for each attribute from each data source, providing a greater

understanding as to why customers are verified or not. Verification rules can also be

customized for the industry, region, transaction amount or a specific risk threshold.

Clients can integrate the product into their existing infrastructure using a web-based

portal, XML direct or a normalized API.

Data management/reporting KYC/AML/Anti-fraud Risk management Compliance



The company’s GlobalGateway solution is powered by the Trulioo Data Exchange

platform which is available to select data partners and clients. This enables partners

and clients to set regional prices for eIDV data, enabling them to monetize their data

through the Trulioo platform. The company states that appropriate privacy practices

are a core principle and it is adapting more of a ‘User as Owner’ approach to privacy

which requires individuals to give permission regarding which entities can access their

personal data.

Figure 13: GlobalGateway screenshot

Source: Company website, Canaccord Genuity Research

Trulioo also provides an AML Watchlist solution that aggregates global AML risk data

from sanction listings (OFAC, UN, EU), law enforcement listings (Interpol, state

agencies, police forces) and governing regulatory bodies around the world. The AML

Watchlist product works with GlobalGateway and provides clients with an additional

data set per verification that checks against a broad range of global government

watch lists. This provides a key function for companies as compliance with AML, CTF

and KYC regulations requires regular identity checks for high risk individuals referred

to as Politically Exposed Persons (PEPs), who are identified on several lists

internationally. Failure to adequately screen for PEPs can result in heavy fines for

financial institutions or other related organizations. Trulioo includes AML Watchlist

within its three GlobalGateway packages; 1) National ($19/mo per user) – which

includes 20 transactions for one country with a $0.65 fee for additional transactions,

2) International ($79/mo per user) – which includes 40 transactions for 15 countries

with a $1.60 fee for additional international transactions and 3) Enterprise – which

has client-specific pricing and is available in all 50+ countries.

Wide range of enterprise clients. Trulioo provides eIDV technology to more than 300

enterprise customers internationally over a wide range of industries including financial

services, payment solutions, insurance and health, online gaming and travel. We

have highlighted a few examples of how the company provides value to its clients.

FundRazr – FundRazr is a crowdfunding platform that has helped raise $75 million

from 60,000 global campaigns. As the company scaled internationally user safety

and access became a greater challenge. The client onboarding process is a crucial

step in determining the legitimacy of a campaign. Prior to Trulioo, Fundrazr staff

manually reviewed social media data as part of this process which became very

inefficient and labour intensive. Following the integration of Trulioo’s eIDV solution



the organization was able to gain faster and more reliable access to information

that can determine whether or not a campaign should proceed.

IG Group Holdings – IG is a global online trading platform with over 135,000

international clients. The company was focused on attracting active retail investors

to its platform and required a more efficient onboarding process to remain

compliant with AML and KYC requirements as clients. Trulioo’s eIDV solution

reduced the number of field types by 25% while providing flexibility to support

extensive country-specific fields. This resulted in a smoother onboarding procedure

and reduced processing time for applications.

Competitive outlook. The AML/KYC compliance technology landscape is mixed

between a larger group of established companies that offer AML/KYC solutions as a

complement to other core offerings and a fragmented set of smaller start-ups that are

largely focused on AML/KYC compliance software solutions. Some of the larger

competitors include ACI Worldwide, Experian (EXPN-L |Not Rated), LexisNexis, SAS

and Thomson Reuters. While these companies have greater scale and a wider breadth

of services for cross selling and attracting new clients, the AML/KYC solutions from

this group appear to be less flexible and utilize less data sources than products from

some of their smaller peers. We note that LexisNexis and Experian resell Trulioo’s

GlobalGateway solution as channel partners despite some overlap between services.

In our view, this highlights the quality the company’s product, and we believe it could

be an effective method for acquiring larger enterprise clients. While Trulioo states it

has an unmatched number of data sources, there are several robust competing

products from AML/KYC technology starts-ups. We highlight Accuity, Contego,

IndentityMind, Behavox and iSignthis (ISX-ASX) as notable global competitors. The

fragmentation of AML/KYC start-ups could accelerate consolidation activity over the

next few years as larger peers acquire leading technology from smaller players or as

smaller companies look to build scale.

Figure 14: How a KYC solution works

Source: Bain & Company, Canaccord Genuity Research

Co-founders and key management. Stephen Ufford and Tanis Jorge founded Trulioo in

2011 after successfully launching and exiting three start-ups together. The two

founders launched iQuiri Inc in 2000 and NCB Data Services (NDS) in 2004. iQuiri

was one of the first companies to make consumer credit reports and scores available

online and NDS was the marketing division of Canada’ first credit bureau; both were

acquired by Experian in 2003 and 2006, respectively. Their most recent venture prior

to Trulioo was Pharos Global, a consumer identity management and restoration

partnership with large consumer credit bureaus. Kroll Marsh purchased the Pharos’



interest in the partnership in 2009. Stephen Ufford is now CEO of Trulioo while Tanis

Jorge sits on the Board of Directors. Both individuals bring an extensive amount of

experience managing big-data focused organizations in the consumer credit space.

Trulioo also has a well-balanced management team that adds a wide breadth of

leadership experience across enterprise architecture, technology-driven product

management and corporate development.

Venture capital interest. Trulioo’s unique global ID verification solution has garnered

attention from well recognized venture capital investors. To date the company has

raised approximately C$25 million from four investors. Blumberg Capital invested

C$2.5 million across two seed rounds in 2010 and 2012. This was followed up by a

C$6.4 million Series A round led by Tenfore Holdings which also included BDC Venture

Capital and an additional investment from Blumberg Capital. In December 2015

Trulioo received C$16.1 million through a venture round that included American

Express Ventures and the previous investors. In our view, the investment from

American Express somewhat validates the size of the opportunity at stake and the

quality of Trulioo’s eIDV solution given that American Express handles a significant

amount of cross border money and likely has a strong understanding of AML/KYC

compliance trends.

Potential risks. While the outlook for global ID verification solutions appears to be

broadly positive we believe there are a few risks that could hamper the growth

trajectory.

Privacy concerns – Trulioo’s core offering largely revolves around being able to

acquire data from a wide range of online sources to verify identities. Internet

giants, large online retailers along with media and telecommunications companies

have all faced scrutiny regarding the use of consumer data. Also the EU’s General

Data Protection Regulation (GDPR) adopted in April 2016 intends to give citizens

more control of their data and could limit the export of data outside of the EU. This

highlights a potential regulatory risk faced by Trulioo as inability to access data

sources across specific regions could impact the value of its AML solution.

Technology spending – Despite recent advancements in AML technology the

impact on preventing money laundering has been largely underwhelming. The

Financial Action Task Force (FATF) estimates global laundering transactions are

roughly 2.7% of global GDP or $2.1 trillion. In 2006, the amount of money

laundering seizures in the US was estimated to be less than 1% of the total money

laundered and there have been few data points since then suggesting any tangible

improvement. Meanwhile AML/KYC compliance costs for banks have increased

substantially providing a weak support case for the cost-effectiveness of AML/KYC

regulations. Global banks could begin to push back on regulators to limit

compliance requirements which could squeeze the available technology spending

available for AML solution providers.



Figure 15: Major technology comparable valuation

Source: Bloomberg, Company Reports, Canaccord Genuity Research

Priced as of close on 29 Sept 2016, all figures in USD unless otherwise stated

PEG

Company Ti ck er Pr i ceMark et Cap

(mn)LTM C2016E C2017E LTM C2016E C2017E LTM C2016E C2017E Revenue EBITDA EPS C2016E Hi gh Low YTD 3 Month 6 Month LTM

ACCENTURE PLC-CL A ACN $ 121.64 $ 81,993 2.2x 2.4x 2.2x 14.0x 14.2x 13.2x 22.9x 22.8x 20.8x 6% 6% 11% 2.0x -3% 33% 16% 9% 6% 26%

ADOBE SYSTEMS INC ADBE $ 107.80 $ 53,601 9.2x 8.8x 7.2x 31.0x 22.5x 17.8x 56.1x 36.3x 28.0x 22% 35% 44% 0.8x -2% 51% 15% 14% 16% 35%

ADVANCED MICRO DEVICES AMD $ 6.67 $ 6,073 1.9x 1.8x 1.7x NMF NMF 42.8x NMF NMF NMF 4% 175% 63% N/A -17% 304% 132% 30% 133% 299%

ALCATEL-LUCENT SA ALU € 3.50 $ 13,903 1.0x 0.9x 0.9x N/A 7.5x 6.2x N/A 13.6x 9.5x 4% 18% 71% 0.2x -10% 22% -4% 1% 8% 10%

AMAZON.COM INC AMZN $ 829.05 $ 393,031 3.3x 2.9x 2.4x 36.0x 25.7x 19.1x NMF NMF 50.9x 28% 41% 102% N/A -1% 75% 23% 16% 40% 67%

ANALOG DEVICES INC ADI $ 63.74 $ 19,598 5.2x 5.2x 4.8x 17.8x 13.8x 12.0x 27.1x 21.8x 19.2x 0% 0% -1% NMF -5% 35% 15% 15% 8% 18%

APPLE INC AAPL $ 112.18 $ 604,476 2.1x 2.1x 2.0x 6.2x 6.5x 6.2x 13.2x 13.6x 12.4x -8% -13% -10% NMF -9% 25% 7% 19% 4% 3%

APPLIED MATERIALS INC AMAT $ 29.58 $ 31,973 3.2x 3.0x 2.6x 14.7x 11.8x 10.2x 21.8x 16.9x 13.2x 12% 21% 48% 0.3x -5% 106% 58% 26% 44% 103%

BROADCOM LTD AVGO $ 172.46 $ 68,523 7.6x 6.3x 5.1x 36.0x 14.0x 10.8x NMF 15.3x 12.9x 92% 62% 27% 0.6x -4% 55% 19% 11% 12% 44%

CA INC CA U $ 32.83 $ 13,754 3.2x 3.2x 3.1x 8.7x 7.7x 7.5x 17.9x 13.0x 12.6x 1% 3% 5% 2.8x -6% 30% 15% 2% 7% 22%

CGI GROUP INC* GIB/ C$ 62.73 $ 19,383 2.0x 1.9x 1.9x 11.1x 10.5x 10.2x 18.3x 17.5x 16.5x 3% 2% 11% 1.6x -5% 34% 13% 13% 2% 33%

CISCO SYSTEMS INC CSCO $ 31.39 $ 157,401 2.4x 2.4x 2.4x 8.1x 7.1x 6.9x 15.3x 13.5x 12.9x 0% 6% 7% 1.9x -2% 40% 16% 11% 12% 22%

CORNING INC GLW $ 23.52 $ 24,387 2.7x 2.5x 2.4x 11.4x 7.6x 7.3x 23.8x 16.0x 14.6x 0% -8% 7% 2.3x -1% 46% 29% 19% 14% 41%

EBAY INC EBAY $ 32.30 $ 36,467 4.3x 4.2x 4.0x 13.5x 10.8x 10.2x 20.1x 17.1x 15.6x 4% -2% 3% 5.5x -3% 50% 18% 39% 34% 34%

FACEBOOK INC-A FB $ 128.09 $ 367,788 15.5x 12.7x 9.4x 31.5x 20.3x 15.2x 61.6x 32.4x 25.0x 55% 58% 83% 0.4x -3% 49% 22% 12% 10% 48%

FISERV INC FISV $ 99.72 $ 21,920 4.9x 4.7x 4.4x 14.7x 13.9x 12.7x 27.1x 22.5x 20.0x 6% 6% 15% 1.5x -11% 18% 9% -6% -2% 18%

ALPHABET INC-CL C GOOG $ 775.01 $ 541,465 5.6x 6.4x 5.5x 17.1x 12.8x 11.0x N/A 22.7x 19.2x 20% 21% 18% 1.3x -2% 31% 2% 13% 4% 30%

HP INC HPQ $ 15.39 $ 26,330 0.4x 0.6x 0.6x 5.5x 6.7x 6.7x 7.3x 9.6x 9.6x -54% -68% -56% NMF -1% 73% 30% 26% 25% 38%

INTEL CORP INTC $ 37.32 $ 176,561 3.2x 3.1x 3.0x 8.8x 8.5x 7.4x 16.6x 14.3x 13.2x 6% -4% 15% 1.0x -2% 35% 8% 17% 15% 28%

INTL BUSINESS MACHINES CORP IBM $ 158.11 $ 151,129 2.2x 2.2x 2.2x 10.7x 9.3x 8.7x 11.1x 11.7x 11.2x -3% -11% -10% NMF -4% 35% 15% 7% 6% 11%

JUNIPER NETWORKS INC JNPR $ 23.71 $ 9,080 1.7x 1.7x 1.6x 7.7x 6.4x 6.0x 14.6x 12.1x 11.0x 1% -2% -2% NMF -27% 12% -14% 7% -8% -5%

MARVELL TECHNOLOGY GROUP LTD MRVL $ 13.24 $ 6,779 2.1x 2.2x 2.1x NMF 18.3x 12.3x NMF 30.1x 19.2x -14% -4% 11% 2.9x -2% 79% 50% 40% 28% 46%

MAXIM INTEGRATED PRODUCTS MXIM $ 39.49 $ 11,201 4.7x 4.5x 4.3x 18.3x 11.7x 11.3x 25.1x 20.1x 18.0x 3% 3% 21% 1.0x -7% 30% 4% 13% 9% 23%

MICROSOFT CORP MSFT $ 57.40 $ 447,290 4.5x 4.1x 3.9x 14.5x 11.0x 10.0x 27.5x 19.8x 17.8x 3% 4% 9% 2.2x -2% 33% 3% 14% 5% 32%

NETAPP INC NTAP $ 34.73 $ 9,678 1.2x 1.3x 1.2x 9.2x 6.4x 6.0x 23.5x 14.7x 12.9x -3% 0% 9% 1.7x -4% 68% 31% 42% 27% 20%

NVIDIA CORP NVDA $ 67.40 $ 36,059 6.0x 5.3x 5.0x 26.3x 18.7x 17.8x 41.0x 29.2x 29.5x 24% 75% 46% 0.6x 0% 190% 104% 44% 90% 184%

ON SEMICONDUCTOR CORP ON $ 12.10 $ 5,028 2.3x 2.1x 1.7x 13.3x 10.5x 8.0x 27.8x 14.4x 10.8x 8% 5% 1% 12.0x -4% 74% 23% 39% 22% 33%

OPEN TEXT CORP OTEX $ 64.88 $ 7,879 4.8x 4.1x 4.0x 14.3x 11.5x 10.5x 25.7x 16.0x 14.9x 15% 13% 13% 1.2x -3% 55% 35% 11% 27% 47%

ORACLE CORP ORCL $ 39.12 $ 160,613 3.9x 3.9x 3.8x 9.8x 8.7x 8.4x 17.9x 14.9x 13.5x 2% 1% 0% 48.8x -7% 18% 7% -4% -4% 10%

PAYPAL HOLDINGS INC PYPL $ 40.39 $ 48,747 4.4x 4.0x 3.5x 20.0x 16.0x 14.0x 36.3x 27.0x 23.3x 18% 10% 18% 1.5x -3% 33% 12% 13% 2% 32%

QUALCOMM INC QCOM $ 67.45 $ 99,398 3.5x 3.5x 3.4x 11.1x 9.0x 8.6x 19.4x 15.8x 14.4x -7% -8% -8% NMF -2% 60% 35% 26% 33% 29%

SALESFORCE.COM INC CRM $ 71.20 $ 48,772 6.5x 5.9x 4.8x NMF 29.3x 22.7x NMF NMF 55.9x 25% 24% 26% N/A -16% 35% -9% -10% -2% 4%

SAP SE SAP € 80.74 $ 111,320 4.9x 4.7x 4.4x 16.6x 13.3x 13.0x 27.1x 20.9x 18.7x 7% 7% 4% 5.2x -2% 44% 10% 19% 14% 42%

SHOPIFY INC - CLASS A SHOP $ 42.96 $ 3,923 13.3x 10.2x 7.1x NMF NMF NMF NMF NMF NMF 87% -146% 14% N/A -5% 132% 67% 42% 54% 28%

SYMANTEC CORP SYMC $ 25.01 $ 15,567 3.0x 3.1x 2.8x 14.9x 9.2x 6.9x 27.5x 22.0x 14.5x -11% 2% -12% NMF -1% 70% 48% 23% 36% 61%

TENCENT HOLDINGS LTD 700 HK H$ 217.60 $ 265,598 14.1x 11.8x 9.0x 31.9x 27.6x 21.5x 50.6x 39.6x 30.4x 49% 47% 41% 1.0x -1% 71% 43% 24% 37% 68%

TEXAS INSTRUMENTS INC TXN $ 69.84 $ 70,064 5.5x 5.5x 5.2x 13.1x 13.0x 12.3x 22.3x 21.8x 20.2x 0% 3% 9% 2.3x -4% 49% 27% 14% 22% 47%

TWITTER INC TWTR $ 23.01 $ 16,285 5.8x 5.6x 5.0x NMF 20.5x 17.5x NMF 46.0x 39.6x 15% 29% 40% 1.1x -28% 68% -1% 37% 44% -10%

VMWARE INC-CLASS A VMW $ 73.08 $ 31,016 3.5x 3.4x 3.2x 14.6x 10.0x 9.6x 26.2x 17.0x 15.9x 6% -2% 6% 2.9x -11% 69% 29% 29% 42% -6%

XILINX INC XLNX $ 53.49 $ 13,559 5.2x 5.0x 4.7x 15.6x 15.4x 14.5x 25.2x 23.8x 22.3x 6% 3% 11% 2.2x -2% 32% 14% 18% 13% 31%

Average 4.6x 4.2x 3.7x 16.1x 13.1x 12.1x 25.7x 20.4x 19.5x 11% 10% 18% 3.8x -6% 59% 24% 18% 22% 41%

Medi an 3.7x 3.7x 3.4x 14.4x 11.6x 10.5x 23.8x 17.3x 16.2x 5% 4% 11% 1.6x -3% 48% 16% 15% 14% 31%

Max 15.5x 12.7x 9.4x 36.0x 29.3x 42.8x 61.6x 46.0x 55.9x 92% 175% 102% 48.8x 0% 304% 132% 44% 133% 299%

Min 0.4x 0.6x 0.6x 5.5x 6.4x 6.0x 7.3x 9.6x 9.5x -54% -146% -56% 0.2x -28% 12% -14% -10% -8% -10%

*Based on CG estimates

EV / S EV / EB ITDA P / E C2016E / C2015 YoY Growth Δ from 52wk Pr i ce Change (%)



Figure 16: Canadian technology comparable valuation


Priced as of close on 29 Sept 2016, all figures in CAD unless otherwise stated

PEG

Company Ti ck er Pr i ceMark et Cap

(mn)LTM C2016E C2017E LTM C2016E C2017E LTM C2016E C2017E Revenue EBITDA EPS C2016E Hi gh Low YTD 3 Month 6 Month LTM

ABSOLUTE SOFTWARE CORPORATION* ABT $ 7.22 $ 218 1.9x 1.9x 1.7x 15.4x 20.0x 16.6x 17.8x NMF NMF -4% -44% -102% N/A -19% 26% -3% 4% 14% -8%

AVIGILON CORP* AVO $ 8.80 $ 290 0.9x 0.8x 0.7x 7.2x 5.7x 4.2x 21.6x 12.9x 10.0x -3% -23% -34% NMF -48% 2% -36% -33% -40% -22%

BLACKBERRY LTD BB $ 10.43 $ 5,171 1.9x 2.4x 3.0x NMF 17.0x 26.1x NMF NMF NMF -37% -56% 76% N/A -16% 33% -14% 20% 1% 32%

BSM TECHNOLOGIES INC* GPS $ 1.25 $ 99 1.6x 1.4x 1.3x 16.8x 8.9x 7.0x 50.4x NMF NMF 51% 121% NMF N/A -14% 60% 45% 11% 29% 47%

CALIAN GROUP LTD CGY $ 23.40 $ 172 0.6x 0.6x 0.6x 7.7x 7.4x 7.2x 12.4x 12.3x 11.7x 10% 31% 35% 0.3x -6% 57% 43% 20% 28% 44%

CELESTICA INC* CLS $ 14.06 $ 2,663 0.4x 0.4x 0.4x 11.7x 8.8x 8.3x 14.6x 9.3x 8.6x 4% 10% 25% 0.4x -19% 24% -8% 19% -1% -16%

CGI GROUP INC* GIB/A $ 62.73 $ 19,383 2.0x 1.9x 1.9x 11.1x 10.5x 10.2x 18.3x 17.5x 16.5x 3% 2% 11% 1.6x -5% 34% 13% 13% 2% 33%

COMPUTER MODELLING GROUP LTD* CMG $ 9.84 $ 779 9.0x 9.3x 8.6x 19.6x 20.3x 17.2x 31.2x 33.4x 27.2x -8% -11% -20% NMF -21% 31% 10% -2% -5% -12%

CONSTELLATION SOFTWARE INC CSU $ 592.68 $ 12,560 4.9x 4.6x 4.0x 19.0x 18.0x 15.8x 46.3x 24.8x 20.7x 17% 18% 9% 2.7x -1% 38% 3% 17% 10% 8%

CORTEX BUSINESS SOLUTIONS IN CBX $ 2.25 $ 17 1.4x 1.4x 1.3x N/A NMF NMF NMF NMF NMF -7% 91% 67% N/A -26% 69% 0% -10% 5% 15%

DATAWIND* DW $ 1.23 $ 27 0.7x 0.5x N/A NMF 7.2x N/A NMF 14.1x N/A 39% 217% 125% 0.1x -53% 11% -41% -33% -33% -46%

DESCARTES SYSTEMS GRP/THE DSG $ 28.28 $ 2,161 8.1x 7.7x 7.0x 25.6x 22.6x 19.7x NMF 30.9x 26.9x 10% 15% 19% 1.6x -2% 35% 2% 14% 13% 18%

DIRECTCASH PAYMENTS INC DCI $ 12.86 $ 224 1.5x 1.5x 1.5x 6.3x 6.5x 6.8x NMF NMF NMF 2% -2% 48% N/A -7% 29% 3% -1% 5% 2%

DRAGONWAVE INC DWI $ 3.57 $ 11 0.4x 0.4x 0.3x NMF NMF NMF NMF NMF NMF -14% N/A 78% N/A -74% 79% -5% -34% 10% -44%

ENGHOUSE SYSTEMS LTD ESL $ 52.78 $ 1,414 4.3x 4.3x 4.0x 12.4x 16.4x 15.4x 34.6x 36.7x 30.5x 12% 17% 34% 1.1x -32% 7% -29% -2% -1% 0%

EVERTZ TECHNOLOGIES LTD* ET $ 16.84 $ 1,260 3.0x 2.9x 2.7x 10.8x 10.6x 9.3x 17.9x 17.2x 15.3x 4% 3% 11% 1.5x -12% 27% -4% -9% 0% 23%

EXACTEARTH LTD* XCT $ 1.43 $ 31 0.8x 0.9x 1.1x 4.1x NMF NMF NMF NMF NMF -28% -99% NMF N/A -64% 17% N/A 4% -49% N/A

EXFO INC* EXF $ 4.87 $ 351 1.3x 1.3x 1.2x 16.9x 16.5x 12.8x 18.9x 18.4x 14.7x 7% 16% 4% 4.4x -11% 35% 27% -4% 15% 23%

GAMING NATION* FAN $ 0.61 $ 29 N/A 1.4x 1.1x N/A 8.6x 4.4x NMF NMF 19.4x 93% 205% -89% N/A -39% N/A -10% -5% 27% -19%

GOLDMONEY INC XAU $ 4.50 $ 226 N/A 1.0x 0.6x N/A NMF 35.4x NMF NMF 37.5x 142% 7% 69% N/A -21% N/A 13% 1% 6% 70%

HALOGEN SOFTWARE INC* HGN $ 10.39 $ 173 2.0x 1.9x 1.7x NMF 33.1x 24.9x NMF NMF NMF 11% 260% 92% N/A -1% 59% 45% 19% 13% 25%

INNOVA GAMING GROUP* IGG $ 1.35 $ 21 0.6x 0.6x 0.5x 4.1x 2.6x 2.2x 6.9x 11.6x 10.2x 7% 15% -1% NMF -40% 27% -23% 10% -10% -22%

KINAXIS INC* KXS $ 66.17 $ 1,304 11.5x 10.3x 8.0x NMF 39.0x 31.4x NMF NMF 48.9x 26% 2% 22% N/A -3% 104% 41% 28% 68% 67%

MACDONALD DETTWILER & ASSOC MDA $ 79.68 $ 2,896 1.8x 1.8x 1.7x 12.1x 9.8x 9.3x 21.2x 12.9x 12.1x 3% 3% 1% NMF -14% 11% -4% -5% -5% 6%

MAGELLAN AEROSPACE CORP MAL $ 16.08 $ 936 1.0x 1.0x 1.0x 6.0x 5.9x 5.7x 10.2x 10.5x 9.8x 9% 17% 18% 0.6x -19% 19% 0% -9% 3% 2%

MEDIAGRIF INTERACTIVE TECHNO MDF $ 18.75 $ 284 4.2x 3.9x 3.7x 10.7x 10.1x 9.5x 17.4x 16.6x 15.0x 12% 5% -2% NMF -4% 31% 14% 11% 19% 13%

MITEL NETWORKS CORP MNW $ 9.69 $ 1,178 1.2x 1.2x 1.2x 17.9x 8.9x 7.5x N/A 11.9x 8.2x 3% -2% -12% NMF -18% 28% -9% 21% -2% 9%

NANOTECH SECURITY CORP* NTS $ 1.04 $ 56 13.4x 11.9x N/A NMF NMF N/A NMF NMF N/A -5% -27% -13% N/A -28% 9% -20% -7% -19% -14%

NYX GAMING GROUP* NYX $ 1.96 $ 393 6.4x 3.3x 2.3x NMF 10.3x 6.2x NMF NMF 9.5x 218% NMF 114% N/A -40% 28% -28% -13% -37% -27%

OPEN TEXT CORP OTC $ 85.36 $ 10,417 4.8x 4.1x 4.0x 14.3x 11.5x 10.5x 25.7x 16.0x 14.9x 15% 13% 13% 1.2x -2% 51% 29% 12% 28% 44%

PERK.COM INC* PER $ 2.40 $ 52 0.5x 0.5x 0.4x 16.1x 3.5x 1.9x NMF 7.8x 4.0x 85% 54% 9% 0.9x -56% 19% -46% -26% -44% -40%

POINTS INTERNATIONAL LTD PTS $ 11.50 $ 179 0.2x 0.2x 0.2x 8.9x 6.0x 4.9x 38.0x 20.1x 15.6x 15% 16% 30% 0.7x -23% 25% -15% -3% 2% -20%

PURE TECHNOLOGIES LTD PUR $ 5.65 $ 302 2.6x 2.4x 2.0x 22.4x 14.6x 10.5x NMF NMF 27.6x 14% 65% 125% N/A -13% 49% 21% -5% 13% 3%

REDKNEE SOLUTIONS INC* RKN $ 2.40 $ 198 1.1x 1.3x 1.2x NMF NMF 9.1x NMF NMF 19.4x -22% -103% NMF N/A -47% 80% -19% 33% -8% -38%

REDLINE COMMUNICATIONS GROUP RDL $ 1.41 $ 24 0.5x 0.4x 0.3x NMF NMF 9.8x NMF NMF NMF -26% NMF NMF N/A -47% 4% -31% -28% -30% -39%

SANDVINE CORP* SVC $ 2.90 $ 319 1.3x 1.3x 1.2x 3.7x 6.2x 5.5x 9.2x 18.9x 17.1x 4% -8% -23% NMF -22% 31% -18% 11% 4% 29%

SIERRA WIRELESS INC SW $ 18.72 $ 602 0.7x 0.7x 0.6x 14.2x 11.6x 8.9x NMF 27.6x 18.5x 0% -20% -37% NMF -45% 38% -14% -14% 3% -33%

SOLIUM CAPITAL INC* SUM $ 7.35 $ 365 3.0x 2.8x 2.5x 21.0x 16.7x 12.0x 62.3x 46.2x 27.1x 11% 0% 6% NMF -9% 28% 5% 23% 7% 5%

TIO NETWORKS CORP* TNC $ 2.14 $ 198 3.0x 1.8x 1.4x 25.3x 13.3x 9.0x 35.5x 18.1x 13.4x 69% 90% 96% 0.2x -13% 66% -5% -3% 26% 30%

URTHECAST CORP* UR $ 1.05 $ 109 1.9x 1.4x N/A NMF 8.0x N/A NMF NMF N/A 14% 243% 61% N/A -61% 22% -30% 7% -15% -54%

VECIMA NETWORKS INC VCM $ 9.00 $ 202 1.2x 1.3x 1.2x 4.0x 5.0x 3.8x 8.8x 12.2x 10.6x -8% -19% -25% NMF -29% 3% -19% -11% -24% -11%

WI-LAN INC* WIN $ 2.07 $ 188 1.2x 1.2x 1.2x 2.1x 2.1x 2.1x 17.9x 3.6x 3.6x 5% 4% 5% 0.8x -46% 60% 12% -39% -26% -12%

Average 2.8x 2.5x 2.1x 13.0x 12.0x 11.0x 25.8x 17.8x 16.8x 18% 29% 20% 1.1x -25% 37% -1% 1% 2% 3%

Medi an 1.8x 1.4x 1.4x 12.2x 10.1x 9.2x 18.9x 16.0x 14.9x 9% 10% 13% 0.8x -21% 31% -3% 1% 3% 2%

Max 13.4x 11.9x 8.6x 25.6x 39.0x 35.4x 62.3x 46.2x 48.9x 218% 260% 125% 4.4x -1% 104% 50% 33% 68% 70%

Min 0.2x 0.2x 0.2x 2.1x 2.1x 1.9x 6.9x 3.6x 3.6x -37% -103% -102% 0.1x -74% 2% -46% -39% -49% -54%


EV / S EV / EB ITDA P / E C2016E / C2015 YoY Growth Pr i ce Change (%)Δ from 52wk



Figure 17: Global gaming technology comparable valuation


Priced as of close on 19 Sept 2016, all figures in USD unless otherwise stated

PEG

Company Ti ck er Pr i ceMark et

Cap LTM C2016E C2017E LTM C2016E C2017E LTM C2016E C2017E Revenue EBITDA EPS C2016E Hi gh Low YTD 3 Month 6 Month LTM

32RED PLC TTR £ 1.48 $ 160.7 1.9x 1.7x 1.4x 14.9x 10.8x 7.5x 38.2x 15.7x 10.6x 41% 70% 36% 0.4x -20% 110% 30% 10% 9% 106%

888 HOLDINGS PLC 888 £ 2.20 $ 1,024.7 1.7x 1.7x 1.6x 12.7x 10.4x 9.3x 28.7x 19.0x 17.0x 12% 8% 6% 3.4x -7% 43% 24% 11% 11% 37%

AINSWORTH GAME TECHNOLOGY LT AGI A$ 2.26 $ 567.5 2.7x 2.4x 2.1x NMF 6.9x 6.3x 13.3x 11.6x 10.2x 10% 21% 20% 0.6x -30% 28% -1% 5% -3% -19%

ARISTOCRAT LEISURE LTD ALL A$ 15.93 $ 7,776.4 6.0x 5.4x 5.0x 18.3x 15.0x 13.3x 42.1x 26.8x 23.5x 43% 50% 63% 0.4x -2% 90% 56% 15% 55% 85%

BET-AT-HOME.COM AG ACX € 68.92 $ 542.8 4.3x 3.8x 3.5x 13.7x 13.6x 11.3x 15.8x 13.9x 11.9x 17% 5% 32% 0.4x -8% 78% 43% 1% 15% 74%

BETSSON AB BETSB SEK 93 $ 1,552.9 3.6x 3.4x 3.1x 13.7x 13.0x 11.7x 16.4x 15.9x 14.0x 9% -5% -13% NMF -39% 48% -38% 39% -17% -29%

BOYD GAMING CORP BYD $ 19.34 $ 2,171.4 2.4x 2.3x 2.1x 9.6x 9.4x 8.5x 20.1x 24.1x 15.3x 2% -10% 9% 2.8x -10% 36% -3% 6% -7% 28%

CHERRY AB CHERB SEK 166 $ 260.3 3.1x 2.8x 2.3x 25.8x 24.2x 13.5x NMF NMF 36.3x 49% 208% NMF N/A -18% 202% 24% 22% 36% 194%

CHURCHILL DOWNS INC CHDN $ 147.37 $ 2,444.7 2.6x 2.5x 2.4x 12.3x 9.6x 8.7x 24.9x 24.8x 20.7x 10% 6% 58% 0.4x -4% 24% 4% 18% 0% 13%

EVOLUTION GAMING GROUP EVO SEK 277 $ 1,160.5 11.0x 9.1x 7.1x 27.0x 22.6x 17.4x 37.3x 31.0x 24.4x 53% 72% 48% 0.6x -14% 31% -10% 12% 1% 9%

GAMEACCOUNT NETWORK PLC GAN £ 0.44 $ 38.1 4.3x 1.9x 2.6x NMF 4.8x 15.6x NMF 7.9x NMF 91% 245% 163% 0.0x -13% 91% 22% 40% 87% -4%

GAMING NATION* FAN C$ 0.61 $ 16.1 N/A 1.4x 1.1x NMF 8.6x 4.4x NMF NMF 19.4x 93% 205% NMF N/A -39% N/A -10% -5% 27% N/A

GAMING REALMS PLC GMR £ 0.19 $ 66.3 1.6x 1.3x 0.9x NMF NMF 7.0x NMF NMF 10.3x 70% 110% 89% N/A -37% 3% -25% -6% -9% -24%

GROUPE PARTOUCHE SA-REGR PARP € 39.00 $ 423.8 1.1x 1.1x 1.1x 4.6x 4.9x 4.5x NMF 27.3x 19.9x 3% 15% NMF N/A -19% 135% 68% 13% 19% 134%

GVC HOLDINGS PLC GVC £ 7.34 $ 2,784.0 5.1x 3.0x 2.9x NMF 12.9x 10.0x NMF 24.4x 14.9x 248% 289% -49% NMF -6% 98% 58% 32% 48% 80%

IG GROUP HOLDINGS PLC IGG £ 8.65 $ 4,119.4 5.8x 5.6x 5.2x 12.9x 12.2x 10.9x 19.3x 18.1x 16.1x 12% 7% 7% 2.4x -11% 24% 8% 8% 7% 14%

INNOVA GAMING GROUP* IGG C$ 1.35 $ 16.0 0.6x 0.6x 0.5x 4.1x 2.6x 2.2x 6.9x 11.6x 10.2x 7% 15% 1% 13.1x -40% 27% -23% 10% -10% -22%

INTERNATIONAL GAME TECHNOLOG IGT $ 24.83 $ 4,991.7 2.5x 2.5x 2.5x 8.4x 7.2x 7.0x 13.0x 12.3x 11.7x 1% 7% 89% 0.1x 0% 99% 53% 36% 41% 59%

INTRALOT S.A.-INTEGRATED LOT INLOT € 0.98 $ 174.8 0.4x 0.5x 0.5x 3.7x 4.0x 3.9x NMF NMF NMF -12% 0% 8% N/A -42% 20% -16% 9% -12% -42%

KAMBI GROUP PLC KAMBI SEK 119 $ 412.8 6.4x 5.7x 4.4x 21.6x 17.2x 12.1x 42.9x 32.6x 21.9x 29% 55% 100% 0.3x -25% 140% -5% 3% -14% 107%

LADBROKES PLC LAD £ 1.39 $ 1,836.1 1.3x 1.2x 1.1x 12.0x 8.5x 6.8x 21.0x 21.4x 16.3x 11% 20% 41% 0.5x -16% 50% 16% 24% 17% 49%

LOTTO24 LO24 € 5.38 $ 145.9 9.3x 6.3x 4.9x NMF NMF NMF NMF NMF NMF 49% 77% 69% N/A -5% 62% 32% 20% 21% 43%

MR. GREEN & CO MRG SEK 33 $ 138.5 1.2x 1.1x 0.9x 31.9x 10.3x 6.4x NMF 28.1x 14.1x 12% 96% -56% NMF -30% 25% -29% 3% -13% -12%

MYBET HOLDING SE XMY € 0.60 $ 17.1 0.2x 0.2x 0.2x NMF 3.1x 5.8x NMF 10.9x NMF -11% 99% 124% 0.1x -41% 33% -21% -18% -32% -39%

NEKTAN PLC NKTN £ 0.42 $ 13.1 NMF 0.5x N/A NMF N/A N/A NMF 2.0x NMF 385% N/A 151% 0.0x -73% 24% -68% -31% -44% -73%

NETENT AB NETB SEK 78 $ 2,184.1 14.2x 12.6x 10.4x 29.9x 27.4x 22.3x 41.8x 38.7x 31.8x 32% 28% 34% 1.1x -18% 32% -4% -2% 5% 3%

NETPLAY TV PLC NPT £ 0.09 $ 30.7 0.5x 0.5x 0.5x 5.0x 4.4x 4.0x 16.4x 8.5x 7.7x 12% -17% 43% 0.2x -21% 27% 16% 5% -20% -14%

NYX GAMING GROUP* NYX C$ 1.96 $ 157.3 6.4x 3.3x 2.3x NMF 10.3x 6.2x NMF NMF 9.5x 218% NMF NMF N/A -40% 28% -28% -13% -37% -27%

OLYMPIC ENTERTAINMENT GROUP OEG1T € 1.83 $ 311.8 1.5x 1.4x 1.3x 7.2x 6.3x 6.0x 11.7x 8.3x 9.5x 17% 8% 29% 0.3x -9% 6% 2% -5% -6% 3%

OPAP SA OPAP € 7.75 $ 2,774.6 3.6x 0.8x 0.6x 7.6x 8.3x 7.7x 13.2x 14.8x 14.6x -20% -16% -21% NMF -12% 50% -4% 22% 24% -4%

PADDY POWER BETFAIR PLC PPB € 87.05 $ 9,472.5 5.6x 4.7x 4.3x NMF 19.0x 15.7x NMF 28.0x 22.4x 40% 56% 19% 1.5x -20% 33% -3% 9% -7% 17%

PAYSAFE GROUP PLC PAYS £ 4.45 $ 2,805.5 3.6x 3.2x 2.9x 13.5x 10.9x 9.8x 41.5x 14.2x 12.6x 64% 93% 43% 0.3x -3% 59% 20% 15% 7% 40%

PLAYTECH PLC PTEC £ 9.19 $ 3,845.5 4.6x 4.2x 3.7x 11.9x 10.3x 8.9x 33.4x 15.7x 13.1x 18% 22% 4% 3.6x -3% 31% 10% 17% 8% 11%

POLLARD BANKNOTE LTD PBL C$ 8.12 $ 145.6 1.1x 1.1x 1.0x 9.3x 8.6x 8.4x 20.9x 17.3x 14.5x 11% 8% 27% 0.6x -9% 31% 8% 2% 4% 12%

RANK GROUP PLC RNK £ 2.07 $ 1,048.5 1.2x 1.1x 1.1x 6.2x 6.4x 6.1x 11.4x 12.8x 11.9x 2% 2% 3% 4.0x -31% 4% -27% -3% -19% -23%

SAFECHARGE INTERNATIONAL GRO SCH £ 2.20 $ 431.6 3.0x 2.8x 2.5x 10.1x 8.8x 7.5x 18.9x 14.1x 12.6x 3% 10% 17% 0.8x -21% 19% -11% 11% -15% -16%

SCIENTIFIC GAMES CORP-A SGMS $ 11.14 $ 975.0 3.2x 3.1x 3.0x 26.7x 8.2x 7.7x NMF NMF NMF 6% 5% 5% N/A -13% 144% 24% 25% 23% 8%

SPORTECH PLC SPO £ 0.80 $ 212.8 1.3x 1.2x 1.2x 8.8x 5.2x 5.0x 36.7x 15.9x 12.4x -2% 3% 16% 1.0x -3% 59% 34% 42% 26% 44%

TABCORP HOLDINGS LTD TAH A$ 5.06 $ 3,238.3 2.4x 2.2x 2.1x 10.8x 9.5x 9.0x 24.8x 21.4x 19.7x 5% 4% 8% 2.6x -2% 31% 7% 11% 18% 8%

TATTS GROUP LTD TTS A$ 3.67 $ 4,118.2 2.2x 2.1x 2.0x 12.6x 12.2x 11.7x 20.4x 19.8x 19.2x 0% 0% 2% 12.0x -17% 4% -16% -4% -3% -2%

UNIBET GROUP PLC-SDR UNIB SEK 79 $ 2,132.0 3.6x 3.1x 2.7x 17.1x 15.0x 12.4x 24.9x 19.8x 16.1x 53% 43% 41% 0.5x -27% 8% -26% 0% -14% -8%

WILLIAM HILL PLC WMH £ 3.00 $ 3,389.0 1.9x 1.9x 1.8x 9.2x 8.8x 8.6x 12.9x 13.2x 12.1x 3% -3% -2% NMF -28% 28% -24% 14% -10% -13%

ZEAL NETWORK SE TIM € 31.60 $ 297.4 1.5x 1.2x 1.0x 3.8x 3.7x 2.8x NMF 12.1x 8.0x 24% 1% 7% 1.7x -31% 6% -19% 0% -24% -23%

ZYNGA INC - CL A ZNGA $ 2.81 $ 2,478.7 2.1x 2.1x 1.9x NMF 27.9x 16.2x NMF NMF NMF 1% 150% NMF N/A -7% 58% 5% 16% 26% 27%

Average 3.4x 2.7x 2.4x 13.7x 10.7x 8.9x 23.9x 17.7x 15.1x 37% 48% 29% 1.8x -21% 51% 3% 10% 6% 15%

Medi an 2.5x 2.2x 2.1x 12.0x 9.5x 8.4x 20.6x 15.8x 14.0x 12% 15% 24% 0.5x -18% 33% 3% 10% 6% 3%

Max 14.2x 12.6x 10.4x 31.9x 27.9x 22.3x 42.9x 38.7x 36.3x 385% 289% 163% 13.1x 0% 202% 68% 78% 87% 194%

Min 0.2x 0.2x 0.2x 3.7x 2.6x 2.2x 6.9x 2.0x 5.0x -20% -17% -56% 0.0x -79% 0% -68% -40% -50% -76%


All figures in US$ except where noted

EV / S EV / EB ITDA P / E

C2016E / C2015 YoY

Growth Δ from 52wk Pr i ce Change (%)



Figure 18: Coverage universe valuation

Source: Company Reports, Canaccord Genuity estimates


*UR: Under Review

Fiscal year

Company Ticker Analys t Rat ing Target Price

Market

Cap

Cash /

share F Y1 F Y 2 F Y 1 F Y2 F Y1 F Y2 F Y1 F Y2 F Y1 F Y2

ABSOLUTE SOFTWARE CORPORATION ABT DT BUY C$ 8.50 C$ 7.22 C$ 287 US$ 1.57 1.8x 1.7x 25.2x 11.5x NMF NMF 1.6% 9.3% 1.2% 7.3%

AVIGILON CORPORATION AVO DT/MW BUY C$ 22.00 C$ 8.80 C$ 382 US$ 0.48 0.8x 0.7x 5.7x 4.2x 12.9x 10.0x NMF 6.7% NMF 5.0%

BSM TECHNOLOGIES INC GPS DT BUY C$ 1.75 C$ 1.25 C$ 99 C$ 0.22 1.4x 1.3x 9.7x 7.3x NMF NMF 16.4% NMF 2.7% NMF

CELESTICA INC CLS RY BUY US$ 12.00 US$ 10.70 US$ 1,542 US$ 1.23 0.2x 0.2x 4.8x 4.6x 9.3x 8.6x 1.9% 3.0% 1.2% 2.4%

CGI GROUP INC GIB.A RY BUY C$ 70.00 C$ 62.73 C$ 19,383 C$ (5.26) 2.0x 1.9x 10.6x 10.3x 17.9x 16.8x 5.3% 6.5% 5.4% 6.7%

COMPUTER MODELLING GROUP CMG DT SELL C$ 8.00 C$ 9.84 C$ 779 C$ 0.95 8.7x 9.2x 18.8x 19.1x 30.9x 29.9x 1.9% 4.1% 1.7% 3.8%

DATAWIND INC DW KW UR* UR* C$ 1.23 C$ 27 C$ (0.43) 0.6x 0.5x NMF 5.3x NMF 8.4x NMF 8.3% NMF 3.1%

EVERTZ TECHNOLOGIES LTD ET RY BUY C$ 20.00 C$ 16.84 C$ 1,260 C$ 1.66 3.0x 2.9x 10.9x 10.4x 17.8x 16.1x 7.7% 6.8% 6.8% 6.0%

EXACTEARTH LTD XCT DT HOLD C$ 1.50 C$ 1.43 C$ 31 C$ 0.60 0.9x 1.1x NMF NMF NMF NMF NMF NMF NMF NMF

EXFO INC EXFO RY HOLD US$ 4.00 US$ 3.66 US$ 200 US$ 0.84 0.7x 0.6x 7.9x 7.1x 18.3x 16.2x 12.2% 5.7% 9.9% 5.0%

GAMING NATION INC FAN KW SPEC BUY C$ 1.50 C$ 0.61 C$ 29 C$ 0.19 1.4x 1.1x 8.6x 4.4x NMF 19.4x NMF 4.5% NMF 3.1%

HALOGEN SOFTWARE INC HGN RY BUY C$ 11.50 C$ 10.39 C$ 227 US$ 1.59 1.9x 1.7x 33.1x 24.9x NMF NMF 0.8% 3.8% 0.7% 3.1%

INNOVA GAMING GROUP INC IGG RY BUY C$ 3.50 C$ 1.35 C$ 28 US$ 0.36 0.6x 0.5x 2.6x 2.2x 11.6x 10.2x 1.4% 4.7% 0.1% 2.2%

KINAXIS INC KXS RY BUY C$ 70.00 C$ 66.17 C$ 1,714 US$ 4.43 10.3x 8.0x 39.0x 31.4x NMF NMF 2.0% 2.9% 1.9% 2.6%

NANOTECH SECURITY CORP NTS KW SPEC BUY C$ 2.00 C$ 1.04 C$ 56 C$ (0.04) 11.1x 4.8x NMF NMF NMF NMF NMF NMF NMF NMF

NYX GAMING GROUP LTD NYX KW BUY C$ 5.00 C$ 1.96 C$ 213 C$ (2.75) 3.3x 2.3x 10.3x 6.2x NMF 9.5x 7.8% 11.2% 2.2% 9.9%

PERK INC PER KW BUY C$ 9.00 C$ 2.40 C$ 69 US$ 1.43 0.1x 0.1x 0.9x 0.5x 7.8x 4.0x NMF 45.8% NMF 9.9%

REDKNEE SOLUTIONS INC RKN RY HOLD C$ 1.75 C$ 2.40 C$ 260 US$ (0.12) 1.2x 1.2x NMF 10.8x NMF 27.8x NMF NMF NMF NMF

SHOPIFY INC SHOP RY/RD BUY US$ 44.00 US$ 42.96 US$ 3,776 US$ 2.05 9.8x 6.8x NMF NMF NMF NMF NMF 0.3% NMF 0.3%

SANDVINE CORP SVC RY BUY C$ 3.75 C$ 2.90 C$ 420 US$ 1.05 1.3x 1.2x 6.2x 5.5x 18.9x 17.1x 17.6% 11.5% 9.3% 6.1%

SOLIUM CAPITAL INC SUM RY BUY C$ 8.50 C$ 7.35 C$ 365 C$1.51 2.8x 2.5x 16.7x 12.0x 46.2x 27.1x 3.3% 6.4% 2.4% 4.8%

TIO NETWORKS CORP TNC KW BUY C$ 2.50 C$ 2.14 C$ 198 C$0.02 2.3x 1.5x 16.7x 10.8x 24.5x 16.1x 3.6% 6.4% 2.8% 5.3%

URTHECAST CORP UR DT SPEC BUY C$ 2.25 C$ 1.05 C$ 109 C$ (0.10) 1.5x 1.4x 27.4x 8.0x NMF NMF NMF 5.3% NMF 5.6%

WI-LAN INC WIN DT SPEC BUY C$ 3.75 C$ 2.07 C$ 247 US$ 0.86 1.2x 1.2x 2.2x 2.1x 5.0x 4.7x 34.0% 36.0% 19.9% 21.0%

Average 2.9x 2.3x 13.5x 9.4x 18.4x 15.1x 7.8% 9.5% 4.5% 5.7%

Calendar year

Company Ticker Analys t Rat ing Target Price Market Cap

Cash /

share C2016E C2017E C2016E C2017E C2016E C2017E C2016E C2017E C2016E C2017E

ABSOLUTE SOFTWARE CORPORATION ABT DT BUY C$ 8.50 C$ 7.22 C$ 287 US$ 1.57 1.9x 1.7x 20.0x 16.6x NMF NMF 6.0% 5.2% 4.7% 4.1%

AVIGILON CORPORATION AVO DT/MW BUY C$ 22.00 C$ 8.80 C$ 382 US$ 0.48 0.8x 0.7x 5.7x 4.2x 17.0x 13.2x NMF 6.7% NMF 5.0%

BSM TECHNOLOGIES INC GPS DT BUY C$ 1.75 C$ 1.25 C$ 99 C$ 0.22 1.4x 1.3x 8.9x 7.0x NMF NMF 2.4% NMF 2.7% NMF

CELESTICA INC CLS RY BUY US$ 12.00 US$ 10.70 US$ 1,542 US$ 1.23 0.2x 0.2x 4.8x 4.6x 9.3x 8.6x 1.9% 3.0% 1.2% 2.4%

CGI GROUP INC GIB.A RY BUY C$ 70.00 C$ 62.73 C$ 19,383 C$ (5.26) 1.9x 1.9x 10.5x 10.2x 17.5x 16.5x 5.6% 6.6% 5.7% 6.8%

COMPUTER MODELLING GROUP CMG DT SELL C$ 8.00 C$ 9.84 C$ 779 C$ 0.95 9.3x 8.6x 20.3x 17.2x 33.4x 27.2x 2.6% 3.3% 2.3% 3.0%

DATAWIND INC DW KW UR* UR* C$ 1.23 C$ 27 C$ (0.43) 0.5x N/A 7.2x N/A 14.1x N/A 4.0% N/A NMF N/A

EVERTZ TECHNOLOGIES LTD ET RY BUY C$ 20.00 C$ 16.84 C$ 1,260 C$ 1.66 2.9x 2.7x 10.6x 9.3x 17.2x 15.3x 7.9% 6.4% 7.0% 5.6%

EXACTEARTH LTD XCT DT HOLD C$ 1.50 C$ 1.43 C$ 31 C$ 0.60 0.9x 1.1x NMF NMF NMF NMF NMF NMF NMF NMF

EXFO INC EXFO RY HOLD US$ 4.00 US$ 3.66 US$ 200 US$ 0.84 0.7x 0.6x 8.3x 6.5x 18.4x 14.7x 11.5% 6.5% 9.5% 5.7%

GAMING NATION INC FAN KW SPEC BUY C$ 1.50 C$ 0.61 C$ 29 C$ 0.19 1.4x 1.1x 8.6x 4.4x NMF 19.4x NMF 4.5% NMF 3.1%

HALOGEN SOFTWARE INC HGN RY BUY C$ 11.50 C$ 10.39 C$ 227 US$ 1.59 1.9x 1.7x 33.1x 24.9x NMF NMF 0.8% 3.8% 0.7% 3.1%

INNOVA GAMING GROUP INC IGG RY BUY C$ 3.50 C$ 1.35 C$ 28 US$ 0.36 0.6x 0.5x 2.6x 2.2x 11.6x 10.2x 1.4% 4.7% 0.1% 2.2%

KINAXIS INC KXS RY BUY C$ 70.00 C$ 66.17 C$ 1,714 US$ 4.43 10.3x 8.0x 39.0x 31.4x NMF 48.9x 2.0% 2.9% 1.9% 2.6%

NANOTECH SECURITY CORP NTS KW SPEC BUY C$ 2.00 C$ 1.04 C$ 56 C$0.04 10.9x N/A NMF N/A NMF N/A NMF N/A NMF N/A

NYX GAMING GROUP LTD NYX KW BUY C$ 5.00 C$ 1.96 C$ 213 C$ (2.75) 3.3x 2.3x 10.3x 6.2x NMF 9.5x 7.8% 11.2% 2.2% 9.9%

PERK INC PER KW BUY C$ 9.00 C$ 2.40 C$ 69 US$ 1.43 0.1x 0.1x 0.9x 0.5x 7.8x 4.0x NMF NMF NMF 9.9%

REDKNEE SOLUTIONS INC RKN RY HOLD C$ 1.75 C$ 2.40 C$ 260 US$ (0.12) 1.3x 1.2x NMF 9.1x NMF 19.4x NMF NMF NMF NMF

SHOPIFY INC SHOP RY/RD BUY US$ 44.00 US$ 42.96 US$ 3,776 US$ 2.05 9.8x 6.8x NMF NMF NMF NMF NMF 0.3% NMF 0.3%

SANDVINE CORP SVC RY BUY C$ 3.75 C$ 2.90 C$ 420 US$ 1.05 1.3x 1.2x 6.2x 5.5x 18.9x 17.1x 17.6% 11.5% 9.3% 6.1%

SOLIUM CAPITAL INC SUM RY BUY C$ 8.50 C$ 7.35 C$ 365 C$1.51 2.8x 2.5x 16.7x 12.0x 46.2x 27.1x 3.3% 6.4% 2.4% 4.8%

TIO NETWORKS CORP TNC KW BUY C$ 2.50 C$ 2.14 C$ 198 C$0.02 1.8x 1.4x 13.3x 9.0x 18.1x 13.4x 3.6% 8.7% 2.8% 7.4%

URTHECAST CORP UR DT SPEC BUY C$ 2.25 C$ 1.05 C$ 109 C$ (0.10) 1.5x 1.4x 27.4x 8.0x NMF NMF NMF 5.3% NMF 5.6%

WI-LAN INC WIN DT SPEC BUY C$ 3.75 C$ 2.07 C$ 247 US$ 0.86 1.2x 1.2x 2.2x 2.1x 3.8x 3.6x NMF NMF 19.9% 21.0%

Average 2.9x 2.2x 12.8x 9.5x 18.0x 16.8x 5.2% 5.7% 4.8% 5.7%

EV / EB ITDA

P/EEV / Sal es

P/EEV / Sal es

F CF /P

F CF /P

F CF /EV

F CF /EV

EV / EB ITDA



Appendix: Important DisclosuresAnalyst CertificationEach authoring analyst of Canaccord Genuity whose name appears on the front page of this research hereby certifies that (i) therecommendations and opinions expressed in this research accurately reflect the authoring analyst’s personal, independent andobjective views about any and all of the designated investments or relevant issuers discussed herein that are within such authoringanalyst’s coverage universe and (ii) no part of the authoring analyst’s compensation was, is, or will be, directly or indirectly, related to thespecific recommendations or views expressed by the authoring analyst in the research.Analysts employed outside the US are not registered as research analysts with FINRA. These analysts may not be associated persons ofCanaccord Genuity Inc. and therefore may not be subject to the FINRA Rule 2241 and NYSE Rule 472 restrictions on communicationswith a subject company, public appearances and trading securities held by a research analyst account.Sector CoverageIndividuals identified as “Sector Coverage” cover a subject company’s industry in the identified jurisdiction, but are not authoringanalysts of the report.

Investment RecommendationDate and time of first dissemination: September 30, 2016, 10:29 ETDate and time of production: September 30, 2016, 07:15 ETCompendium ReportThis report covers six or more subject companies and therefore is a compendium report and Canaccord Genuity and itsaffiliated companies hereby direct the reader to the specific disclosures related to the subject companies discussed in thisreport, which may be obtained at the following website (provided as a hyperlink if this report is being read electronically) http://disclosures.canaccordgenuity.com/EN/Pages/default.aspx; or by sending a request to Canaccord Genuity Corp. Research, Attn:Disclosures, P.O. Box 10337 Pacific Centre, 2200-609 Granville Street, Vancouver, BC, Canada V7Y 1H2; or by sending a requestby email to [email protected]. The reader may also obtain a copy of Canaccord Genuity’s policies and proceduresregarding the dissemination of research by following the steps outlined above.

Distribution of Ratings:Global Stock Ratings (as of 09/30/16)Rating Coverage Universe IB Clients

# % %Buy 540 59.08% 34.81%Hold 291 31.84% 19.93%Sell 21 2.30% 14.29%Speculative Buy 62 6.78% 74.19%

914* 100.0%*Total includes stocks that are Under Review

Canaccord Genuity Ratings SystemBUY: The stock is expected to generate risk-adjusted returns of over 10% during the next 12 months.

HOLD: The stock is expected to generate risk-adjusted returns of 0-10% during the next 12 months.

SELL: The stock is expected to generate negative risk-adjusted returns during the next 12 months.

NOT RATED: Canaccord Genuity does not provide research coverage of the relevant issuer.“Risk-adjusted return” refers to the expected return in relation to the amount of risk associated with the designated investment or therelevant issuer.Risk QualifierSPECULATIVE: Stocks bear significantly higher risk that typically cannot be valued by normal fundamental criteria. Investments in thestock may result in material loss.

12-Month Recommendation History (as of date same as the Global Stock Ratings table)



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This research is for distribution only to persons who are EligibleCounterparties or Professional Clients only and is exempt from the general restrictions in section 21 of the Financial Services andMarkets Act 2000 on the communication of invitations or inducements to engage in investment activity on the grounds that it is beingdistributed in the United Kingdom only to persons of a kind described in Article 19(5) (Investment Professionals) and 49(2) (High NetWorth companies, unincorporated associations etc) of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005(as amended). It is not intended to be distributed or passed on, directly or indirectly, to any other class of persons. This material is not fordistribution in the United Kingdom or elsewhere in Europe to retail clients, as defined under the rules of the Financial Conduct Authority.For Jersey, Guernsey and Isle of Man Residents:This research is sent to you by Canaccord Genuity Wealth (International) Limited (CGWI) for information purposes and is not to beconstrued as a solicitation or an offer to purchase or sell investments or related financial instruments. This research has been producedby an affiliate of CGWI for circulation to its institutional clients and also CGWI. Its contents have been approved by CGWI and we areproviding it to you on the basis that we believe it to be of interest to you. This statement should be read in conjunction with your clientagreement, CGWI's current terms of business and the other disclosures and disclaimers contained within this research. If you are in anydoubt, you should consult your financial adviser.CGWI is licensed and regulated by the Guernsey Financial Services Commission, the Jersey Financial Services Commission and the Isleof Man Financial Supervision Commission. CGWI is registered in Guernsey and is a wholly owned subsidiary of Canaccord Genuity GroupInc.For Australian Residents:This research is distributed in Australia by Canaccord Genuity (Australia) Limited ABN 19 075 071 466 holder of AFS Licence No234666. To the extent that this research contains any advice, this is limited to general advice only. Recipients should take into accounttheir own personal circumstances before making an investment decision. Clients wishing to effect any transactions in any financialproducts discussed in the research should do so through a qualified representative of Canaccord Genuity (Australia) Limited. CanaccordGenuity Wealth Management is a division of Canaccord Genuity (Australia) Limited.For Hong Kong Residents:This research is distributed in Hong Kong by Canaccord Genuity (Hong Kong) Limited which is licensed by the Securities and FuturesCommission. This research is only intended for persons who fall within the definition of professional investor as defined in the Securitiesand Futures Ordinance. It is not intended to be distributed or passed on, directly or indirectly, to any other class of persons. Recipients ofthis report can contact Canaccord Genuity (Hong Kong) Limited. (Contact Tel: +852 3919 2561) in respect of any matters arising from, orin connection with, this research.Additional information is available on request.



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Copyright © Canaccord Genuity Limited. 2016 – Member LSE, authorized and regulated by the Financial Conduct Authority.

Copyright © Canaccord Genuity Inc. 2016 – Member FINRA/SIPC

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All rights reserved. All material presented in this document, unless specifically indicated otherwise, is under copyright to CanaccordGenuity Corp., Canaccord Genuity Limited, Canaccord Genuity Inc or Canaccord Genuity Group Inc. None of the material, nor its content,nor any copy of it, may be altered in any way, or transmitted to or distributed to any other party, without the prior express writtenpermission of the entities listed above.



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