1、Compliance Technology Sector UpdateEnvironmental,Health,and Safety(EHS)and Supply Chain Risk Management(SCRM)Harris Williams|Q4 2022Compliance Technology|Q4 2022Increasing focus on worker safety,supply chain visibility,and sustainability is driving adoption of EHS and Supply Chain Risk Management so

2、lutions.1EHS and SCRM Technology Observations and Key TrendsHappening in Compliance Tech Right NowThe scope of modern corporate sustainability extends beyond resource consumption and emission reductions.Initiatives supporting sustainable operations create value for organizations by accelerating grow

3、th,reducing costs,and mitigating risks.SustainabilityOccupational health and worker health,exacerbatedby the impacts of COVID-19,are strategic imperatives to success.EHS capabilities are a must-have to foster a safe workplace for all employees.Worker SafetyCompliance is a daily requirement of busine

4、sses,resulting in near-constant communication and coordination among employees,customers,suppliers,vendors,and other stakeholders.Organizations are directly benefiting from dedicated software tools that lower the burden of remaining compliant.Increasing Regulatory ComplexitiesOrganizations are lever

5、aging software tools to drive operational efficiencies by way of real-time,dynamic,worker-and asset-level risk models and tools that empower proactive incident management and risk mitigation.Supply Chain Transparency and Risk ManagementEHS and SCRM data is relevant and imperative across all business

6、 operations and performance management,driving an increase in investment in connected intelligence across personnel and management,as well as operational and functional areas.Data and AnalyticsEnvironmental,social,and governance(ESG)frameworks and standards are at the forefront of stakeholder decisi

7、on-making.Management teams face greater scrutiny from stakeholders as it relates to performance with ESG issues.Stakeholder PressureCompliance Technology|Q4 20222Perspectives on EHS and SCRM TechnologyEnvironmental,Social,and Governance(ESG)Solutions designed to manage,track,and measure ESG performa

8、nceSolutions that streamline environmental,health,and safety management,and improve health and safety performanceEnvironmental,Health,and Safety(EHS)Supply Chain Risk Management(SCRM)Solutions that manage supply chain and vendor risk Cloud deployment with mobile functionalitiesNecessity of EHS train

9、ing throughout the entire organizationConvergence of employee safety and asset risk managementHeightened regulatory and investor focus on sustainable business practicesData aggregation and benchmarking relating to sustainability commitmentsSelect Market ParticipantsKey TrendsIncreased focus on suppl

10、y chain transparency and risk mitigationIntegration of climate risk,sustainability,and resilienceDemand for tier 1 supplier sustainability initiativesInterest in platforms with end-to-end capabilitiesGrowing importance for marketplaces with high network nodal densitySelect Market ParticipantsKey Tre

11、ndsCompliance Technology|Q4 20223What Were ReadingPlanet TrackerA new report highlights the need for transparency of businesses with toxic emissions so that investors can thoroughly assess the risks of their investments.There is an opportunity for investors to leverage their position to drive change

12、.Read the full article here.Investors Should Demand Toxic Emissions TransparencyEHS TodayIn order to achieve world-class safety performance,safety must be integrated into the culture of the enterprise.Overall,the organizations that are demonstrating a commitment to safety,and the well-being of their

13、 employees lives,are rising to the top._Read the full article here.The Evolution of Risk Management and Workplace SafetySpiceworksTechnologies that drive transformation provide critical assistance to companies with dispersed facilities that dont have a roadmap for how environmental compliance should

14、 work and do not receive enough support.Read the full article here.Navigating the Path to Digital Transformation for Environmental ComplianceOil&Gas JournalThe speed and the pace of work is creating new challenges and opportunities for health and safety as EHS management systems look to drive operat

15、ional performance.Read the full article here.How EHS Software Helps Businesses Keep Pace with Transforming WorkRecent Harris Williams Technology and Compliance ContentClick to Read360training Deal SnapshotClick to ReadEHS Software CEO RoundtableGRC Sector UpdateClick to ReadCompliance Technology|Q4

16、20224Select Q3 2022 EHS and SCRM Technology TransactionsTargetSeptember 21,2022Ethos ESG is a provider of Environmental,Social,and Governance(ESG)ratings data and software for financialadvisors,asset managers,institutions,and investorsThis acquisition marks ACAs first analytics offering,which will b

17、e paired with ACAs ESG experts to form an integrated tech and advisory offeringACA Group acquires Ethos ESGBuyerTargetSeptember 20,2022Reporting 21 is a provider of Environmental,Social,and Governance(ESG)performance solutions and advisoryservices to financial institutions and corporationsThe Report

18、ing 21 solution will be incorporated into Coritys Sustainability Cloud to better support customers in managing,reporting,and actioning their sustainability and ESG initiatives Cority acquires Reporting 21BuyerVelocityEHS is a provider of EHS software,serving enterprise customers globallyThe investme

19、nt from Partners Group will enable VelocityEHS to accelerate growth of their ESG product,expand into international markets,develop new products,and pursue strategic acquisitionsTargetAugust 16,2022Partners Group acquires a significant minority stake in VelocityEHSInvestorTargetBuyerJuly 5,2022ToxPla

20、net is a provider of chemical and toxicology literature for safety professionals managing the impactof chemicals on people,the workplace,and the environmentThe acquisition of ToxPlanet complements Enhesas existing platform focused on global operations,product and chemicals management compliance,and

21、sustainabilityEnhesa acquires ToxPlanetTargetSeptember 13,2022riskmethods is a provider of Environmental,Social,and Governance(ESG)performance and risk managementsoftware,data,and consulting servicesThe acquisition of riskmethods will add advanced AI and machine-learning software to Spheras current

22、productportfolio,enhancing their current technology offeringSphera acquires RiskmethodsBuyerRegScan is an online provider of Environmental,Health,Safety&Sustainability(EHS&S)regulatory compliance and audit content for jurisdictions around the globeFollowing the acquisition,Enhesa and RegScan are exp

23、loring ways to blend the content,platform capabilities,and sales approaches to best provide for their customersJuly 21,2022Enhesa acquires RegScanTargetBuyerCompliance Technology|Q4 2022(50%)(25%)-25%50%75%100%125%150%175%200%(30%)(20%)(10%)-10%20%30%40%Indexed Stock Price Performance for the period

24、 September 2021 September 2022Indexed Stock Price Performance for the period September 2017 September 2022+29.8%+41.5%(17.7)%(12.5)%Compliance and Industrial Technology Public Company Trended Stock Performance1Public Company Stock Performance Last 12 MonthsPublic Company Stock Performance 5 Years5Co

25、mpliance Technology DiversifiedCompliance Technology IndustrialsCompliance Technology Diversified Compliance Technology IndustrialsS&P 500(15.1)%+73.1%Compliance Technology|Q4 20226Compliance and Industrial Technology Public Company Operating and Valuation Metrics2Median EV/LTM RevenueMedian EV/NTM

26、RevenueMedian EV/LTM EBITDAMedian EV/NTM EBITDALTM Revenue GrowthNTM Revenue GrowthLTM EBITDA MarginRule of 40(Growth+Margin)Public Company Operating MetricsPublic Company Valuation Metrics3.9%4.7%31.2%23.2%32.0%27.1%Compliance Technology DiversifiedCompliance Technology Industrials1.9%6.6%5.8x3.8x1

27、7.0 x14.9x7.8x3.4x15.3x14.3xCompliance Technology|Q4 2022EHS and SCRM Technology Market Landscape7Supply Chain Management PlatformsEHS PlatformsIncumbentsEHS and QMS ToolsTrainingEmerging PlayersIncumbentsEmerging PlayersSustainabilityDiversified End MarketsTo view full market map,please reach out t

28、o the contacts listed on page 8Compliance Technology|Q4 20228Harris Williams:At a GlanceThe Harris Williams Technology Group 30 years and thousands of deals closed100%of revenue is from M&A advisory10 industry groups with deep sector expertise70%of revenue from repeat clients8 offices across the U.S

29、.and EuropeHarris Williams ContactsErik SzyndlarManaging D(415)217-3418Brian TitteringtonD(415)217-3425Thierry MonjauzeHead of Technology GroupManaging D+44 20 7518 8901Gunnar ShawVice P(415)217-3441Mathew TsuiD+44 20 7518 8926Thematic Focus Areas SaaS/Cloud Integrated Payments AI/Machine Learning D

30、igital TransformationSector Coverage AreasTechnology Coverage AreasArchitecture,Engineering,and Construction ComplianceeCommerce&RetailEducation Human Capital ManagementPharma Government&Public SectorIndustrial Legal Real Estate&PropertyHealthcareOffice of the CFOSupply Chain&LogisticsApplication So

31、ftwareInfrastructure&Security SoftwareIT&Managed ServicesMinneapolisWashington,D.C.LondonBostonSan FranciscoFrankfurtClevelandRichmondDedicated Harris Williams Asia-Pacific Coverage Team Compliance Technology|Q4 2022Harris Williams Compliance Technology Experience9Selected Compliance Tech Experience

32、hasacquiredhas acquiredhas acquiredhas beenacquired byhasacquiredhas been acquired byhasacquiredhas beenacquired byHarris Williams Client Engagement SpotlightReporting 21 is a provider of innovative Environmental,Social,and Governance(ESG)performance solutions and advisory services to financial inst

33、itutions and corporationsCompany BackgroundThe transaction delivered another successful outcome within the EHS software sector.Reporting 21s profile has a strong fit within Coritys investment mandate and will further support the customer base as the company pursues its growth and expansion strategy

34、in the years ahead.Harris Williams served as exclusive financial advisor to Cority in this transaction.Successful Outcomehas made an investment inhas beenacquired byhas received a significant investment fromHarris Williams Client Engagement Spotlight360training is a leading provider of online,regula

35、tory-approved training for professionals and businesses,primarily serving the Environmental,Health,and Safety(EHS),Food&Beverage,and Real Estate marketsCompany BackgroundThe transaction delivered another successful outcome within the professional training and regulatory compliance management sector.

36、Vestar joins current investors GreyLion and RedHawk Management to support the Companys organic growth initiatives and accelerate its proven M&A strategy.Harris Williams served as exclusive financial advisor to 360training in this transaction.Successful Outcomeshas received a significant investment f

37、romhasacquiredhasacquiredCompliance Technology|Q4 2022Harris Williams Capabilities and Locations10IndustrialsSpecialty DistributionBusiness ServicesConsumerBuilding Products and MaterialsAerospace,Defense and Government ServicesEnergy,Power and InfrastructureHealthcare and Life SciencesTechnologyTra

38、nsportation and LogisticsHarris Williams has a broad range of industry expertise,which creates powerful opportunities.Our clients benefit from our deep sector experience,integrated industry intelligence and collaboration across the firm,and our commitment to learning what makes them unique.For more

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56、d,without Harris Williams prior written consent.AppendixCompliance Technology|Q4 2022Public Market Operational and Valuation Metrics 1 213As of September 30,2022$in MillionsMarketEnterprise%of 52-WeekLTMLTMEnterprise Value/For ChartsCompanyCapitalizationValueHighGross MarginEBITDA MarginLTM RevenueN

57、TM RevenueLTM EBITDANTM EBITDACompliance Technology-DiversifiedIntercontinental Exchange,Inc.$50,457$68,05464.6%100.0%61.9%9.3x9.1x15.0 x13.9xNasdaq,Inc.27,843 33,250 79.1%58.3%32.1%5.4x9.1x17.0 x16.4xRELX PLC46,927 55,172 89.1%64.3%31.2%5.8x5.6x18.6x15.0 xThomson Reuters Corporation49,937 53,369 90

58、.5%35.6%26.3%8.2x7.8x31.1x21.0 xWolters Kluwer N.V.24,094 26,410 89.7%71.2%30.4%5.0 x4.9x16.3x15.3xMedian$46,927$53,36989.1%64.3%31.2%5.8x7.8x17.0 x15.3xCompliance Technology-IndustrialsAspen Technology,Inc.$15,348$15,25399.0%58.6%30.4%31.6x13.0 xNM28.8xDassault Systmes SE46,056 46,578 62.9%84.0%24.

59、6%8.5x8.2x34.6x21.8xEmerson Electric Co.43,295 58,870 72.9%40.9%22.1%3.1x2.9x13.9x11.3xSchneider Electric S.E.63,655 77,227 65.4%40.6%18.6%2.4x2.3x12.7x11.6xFortive Corporation20,731 23,736 73.0%57.4%25.0%4.3x4.0 x17.2x15.4xHoneywell International Inc.112,486 124,558 73.1%32.1%24.3%3.6x3.4x14.9x13.2xRockwell Automation,Inc.24,831 29,069 60.6%39.4%18.4%3.9x3.5x21.2x15.8xSiemens Aktiengesellschaft78,354 127,423 64.1%35.6%14.2%1.8x1.8x12.5x8.2xMedian$44,675$52,72469.1%40.8%23.2%3.8x3.4x14.9x14.3x