Exhibit (c)(9)
DRAFT | Confidential Preliminary | Subject to Further Review and Evaluation January 2025 Project Alpha Discussion Materials
CONFIDENTIAL | DRAFT ($MM, except per share amounts) Share Price: 1-Day Prior to $240 Echo Public Proposal (11/4/24) Echo Proposal (5) (1/22/25) $237.59 $265.00 Implied Transaction Premium Statistic Premium to 1-Day Prior to $240 Echo Public Proposal (11/4/24) $237.59 Premium to 30-Day VWAP (11/4/24) (1) 235.83 Premium to 60-Day VWAP (11/4/24) (1) 229.07 Premium to 90-Day VWAP (11/4/24) (1) 216.77 Premium to LTM VWAP (11/4/24) (1) 204.42 Premium to Alpha Share Price Post FQ4’24 Earnings (8/7/24) 207.00 Premium / (Discount) to All-Time High Share Price (11/4/24) (All-Time High Date: 10/5/22) (1) 256.23 Premium / (Discount) to LTM High Share Price (11/4/24) (LTM High Date: 10/30/24) (1) 240.83 Premium to LTM Low Share Price (11/4/24) (LTM Low Date: 11/9/23) (1) 163.41 - 1% 4% 10% 16% 15% (7%) (1%) 45% 12% 12% 16% 22% 30% 28% 3% 10% 62% Implied Valuation & Multiples Fully-Diluted Equity Value (2) Fully-Diluted Enterprise Value (2) $15,222 $15,056 $16,989 $16,822 FD Equity Value Excluding Current Echo Stake of 57% (43%) $6,595 $7,367 Alpha Street Revenue Multiples ACV % Gr. % Gr. / Mar. Statistic (3) NTM (ending 9/30/25) 9% 13% $1,239 CY25E 9% 10% 1,249 EBITDA Multiples NTM (ending 9/30/25) 46% $574 CY25E 46% 576 LFCF Multiples NTM (ending 9/30/25) 31% $381 CY25E 33% 418 Alpha Management Revenue Multiples ACV % Gr. % Gr. / Mar. Statistic (4) NTM (ending 9/30/25) 11% 13% $1,239 CY25E 12% 8% 1,235 EBITDA Multiples NTM (ending 9/30/25) 46% $564 CY25E 44% 541 LFCF Multiples NTM (ending 9/30/25) 30% $376 CY25E 31% 382 12.1x 12.1 26.2x 26.1 40.0x 36.4 13.6x 13.5 29.3x 29.2 44.6x 40.6 12.2x 12.2 26.7x 27.8 40.5x 39.8 13.6x 13.6 29.8x 31.1 45.2x 44.4 Alpha Transaction Statistics stock method. Alpha balance sheet statistics per Alpha Management for the period ended December 31, 2024. Cash adjusted for $9MM holdback related to acquisition of Open Grid, expected to be paid in FY26. Note: Current market prices per FactSet as of January 24, 2025. (3) Alpha street projections based on mean consensus estimates of Wall Street Analyst reports as of January 24, 2025, provided by Alpha Management. (1) Alpha market statistics based on share prices and volume-weighted average prices as of 1-day prior to the $240 Echo Public Proposal of November 4, 2024. (4) Alpha Management Plan provided by Alpha Management as of December 2024, updated in January 2025 for FQ2’25 actuals. Volume-weighted average prices based on trading days per FactSet. (5) Reflects Echo Proposal of $265.00 per share received on January 22, 2025. (2) Alpha common shares outstanding, RSUs, PSUs, and options as of January 17, 2025 per Alpha Management. Fully-diluted shares calculated using treasury 2
CONFIDENTIAL | DRAFT Summary of Alpha Valuation Analyses Valuation Analysis Discounted Cash Flow Analysis (1)(2) WACC Range: 9.5% - 11.5% Terminal NTM UFCF Mult. Range: 20.0x - 30.0x Implied Perpetuity Growth Rate: 4.3% - 8.0% Selected Companies Analysis (2) Selected Transaction Analysis (2) Fully-Diluted Equity Value / LFCF Multiples CY25E Multiple Range: 26.0x - 40.0x Fully-Diluted Enterprise Value / Revenue Multiples Fully-Diluted Enterprise Value / EBITDA Multiples NTM Multiple Range: 24.7x - 33.5x Fully-Diluted Equity Value / LFCF Multiples Reference Range NTM Multiple Range: 7.5x - 14.5x NTM Multiple Range: 33.4x - 48.8x Financial Case Alpha Management Plan (3) Alpha Street (4) Alpha Management Plan (3) Alpha Street (4) Implied Alpha Price Per Share $200.02 $170.01 $155.51 $147.93 $224.15 $198.45 $305.22 $260.90 $238.66 $282.13 $302.90 $289.64 Echo Proposal(5): $265.00 3 Present values as of December 31, 2024, assuming mid-period convention. Assumes current Alpha shareholders incur 2% cumulative dilution through issuance of equity awards over the projected period, per Alpha Management. Alpha common shares outstanding, RSUs, PSUs, and options as of January 17, 2025 per Alpha Management. Fully-diluted shares calculated using treasury stock method. Alpha balance sheet statistics per Alpha Management for the period ended December 31, 2024. Cash adjusted for $9MM holdback related to acquisition of Open Grid, expected to be paid in FY26. Alpha Management Plan provided by Alpha Management as of December 2024, updated in January 2025 for FQ2’25 actuals. Alpha street projections based on mean consensus estimates of Wall Street Analyst reports as of January 24, 2025, provided by Alpha Management. Reflects Echo Proposal of $265.00 per share received on January 22, 2025.
- 500 1,000 1,500 2,000 2,500 80 90 Alpha 8/6 100 110 120 130 140 150 160 8/06 8/08 8/12 8/14 8/16 8/20 8/22 8/26 8/28 8/30 9/04 9/06 9/10 9/12 9/16 9/18 9/20 9/24 9/26 9/30 10/02 10/04 10/08 10/10 10/14 10/16 10/18 10/22 10/24 10/28 10/30 11/01 11/05 11/07 11/11 11/13 11/15 11/19 11/21 11/25 11/27 12/02 12/04 12/06 12/10 12/12 12/16 12/18 12/20 12/24 12/27 12/31 1/03 1/07 1/10 1/14 1/16 1/21 1/23 Source: FactSet as of January 24, 2025. Technical Software Index includes Cadence, Synopsys, Autodesk, PTC, Bentley Systems, Nemetschek, Dassault and Altair until October 21, 2024, the last unaffected trading date prior to announcement of a transaction with Siemens.. Reflects Echo Proposal of $265.00 per share received on January 22, 2025. Alpha Trading Since FQ4’24 Earnings Volume (000’s) Echo Proposal(2): $265.00 From August 6, 2024 to Current (January 24, 2025) Indexed Share Price Alpha Current: $255.16 +43% Since 8/6/24 +7% Since 11/4/24 11/4: $237.59 +34% Since 8/6/24 Close: $177.84 4 Sep. 17, 2024 2024 Investor Day +3% 1-Day Price Reaction Nov. 4, 2024 (Post-Market) - FQ1’25 Earnings Revenue: -19% miss ACV: 54bps miss FCF: -$16M miss (-$6M vs $10M) Reaffirmed FY25 guidance Alpha share price drops ~-5% to $225.72 after hours Aug. 7, 2024 (9AM ET Start) Echo FQ3’24 Earnings At ~9:42AM ET (12 minutes after market open), Lal responds ‘no comment’ to analyst question about potential Alpha Acquisition in FY25 Nov. 5, 2024 Echo submits proposal to acquire remaining Alpha Stake Aug. 6, 2024 (Post-Market) - FQ4’24 Earnings Revenue: +7% beat ACV growth: 46bps beat (excl. one-off impact of exited Russia ops.) FCF: -5% miss Issued FY25 guidance in line with street consensus on revenue but lower on FCF ($340M vs $387M) Alpha share price opens +17% to $208.47, prior to any commentary from Echo Management about a take-out of Alpha +16% Alpha 1-Day Price Reaction Technical Software(1) Current +15% Since 8/6/24 +6% Since 11/4/24 CONFIDENTIAL | DRAFT Nov. 5, 2024 (Pre-Market) Echo FQ4’24 Earnings Echo share price rises +7%
$0 Jan-14 Jul-14 Jan-15 Jul-15 Jan-16 Jul-16 Jan-17 Jul-17 Jan-18 Jul-18 Jan-19 Jul-19 Jan-20 Jul-20 Jan-21 Jul-21 Jan-22 Jul-22 Jan-23 Jul-23 Jan-24 Jul-24 Jan-25 $50 $100 $150 $200 $250 From January 2, 2014 to Current (January 24, 2025) Share Price $300 Echo Proposal vs. Alpha Historical Stock Price 5 Source: FactSet as of January 24, 2025. Reflects Echo Proposal of $265.00 per share received on January 22, 2025. Reflects the period 11/4/2023 to 11/4/2024, the year prior to the receipt of Echo’s first proposal. Alpha (Current): $255.16 +39% Since 5/17/22 Alpha (11/4/24): $237.59 +29% Since 5/17/22 Echo Proposal(1): $265.00 52-Week High (10/30/24)(2): $240.83 52-Week Low (11/9/23)(2): $163.41 1st Echo Transaction Announce (October 11, 2021) | Close (May 16, 2022) CONFIDENTIAL | DRAFT
77.6x 24.1x 23.9x 23.2x 22.1x 21.9x 20.1x 20.0x 18.4x 17.9x 16.6x 16.2x 15.5x 14.5x 14.0x 13.2x 12.8x 10.6x 5.9x - - Altair Altium Ansys Echo Proposal Inovalon Mimecast Coupa RealPage Red Hat AVEVA Smartsheet Splunk Black Knight PowerSchool Commerce Hub Advent Software Cerner Squarespace Informatica Infoblox Instructure DealerTrack Cornerstone OnDemand Citrix VMware Blackboard Riverbed McAfee LogMeIn AVG Quest Software BMC Neustar Medidata Mentor Graphics Overall Median: 23.6x 37.8x 33.8x 33.4x(3)31.1x 29.3x 28.2x 28.2x 26.8x 60.6x 48.8x 44.6x(4) 41.5x 40.6x 39.3x 9.7x 9.3x 8.8x 8.8x 8.6x 8.4x 8.2x 7.1x 6.9x 6.4x 6.4x 5.9x 5.6x 5.1x 5.1x 4.8x 4.3x 4.1x 3.7x 3.7x 3.4x 3.2x 3.2x 3.2x 3.1x 2.5x 2.3x Altium Altair Ansys Echo Proposal Black Knight Red Hat Inovalon Mimecast Commerce Hub Coupa RealPage AVEVA Medidata McAfee PowerSchool Splunk Instructure Advent Software Smartsheet Cornerstone OnDemand Squarespace VMware Citrix Cerner Informatica DealerTrack Infoblox Mentor Graphics LogMeIn AVG Riverbed Blackboard BMC Quest Software Neustar Overall Median: 6.4x 64.4x 43.9x 37.5x 35.0x 25.0x 24.7x 22.9x 21.0x 20.5x 19.7x 19.4x 19.4x 18.8x 18.1x 18.0x 17.0x 16.9x 16.0x 15.7x 15.1x 14.1x 12.6x 11.5x 10.9x 10.7x 9.0x 7.9x 5.0x Altair Altium Coupa Smartsheet Red Hat Ansys Mimecast Medidata Splunk Echo Proposal RealPage Inovalon AVEVA Squarespace PowerSchool Commerce Hub Black Knight Infoblox DealerTrack Cornerstone OnDemand Informatica Advent Software McAfee Instructure Citrix Mentor Graphics VMware Cerner Blackboard Riverbed Quest Software LogMeIn AVG BMC Neustar Overall Median: 19.4x Selected Transaction Statistics Selected Public Software Transactions Above $1 Billion Since 2011 with Revenue Growth Between ~0% and 20% and LFCF Margin > ~20%(1) Source: Capital IQ, FactSet, company filings, company press releases and Wall Street research. Note: Multiples greater than 80.0x or negative shown as dashes. Includes Altair, Altium, Mentor Graphics, and Medidata transactions. NTM statistics based on mean analyst consensus estimates for the next 12-month period as of transaction announcement. (4) Reflects Echo Proposal of $265.00 per share received on January 22, 2025. Alpha common shares outstanding, RSUs, PSUs, and options as of January 17, 2025 per Alpha Management. PSUs outstanding reflects PSUs based on target performance. Fully-diluted shares calculated using treasury stock method. Alpha balance sheet statistics per Alpha Management for the period ended December 31, 2024. Cash adjusted for $9MM holdback related to acquisition of Open Grid, expected to be paid in FY26. NTM Revenue Multiples of Selected Transactions(2) 6 Legend Recent Technical SW Transactions NTM LFCF Multiples of Selected Transactions(2) NTM EBITDA Multiples of Selected Transactions(2) 7.5x (3) 7.5x 7.4x 7.2x 16.2x 14.6x 14.5x (4) 13.6x (3) (3) AVEVA statistics reflect 2022 buy-out of its minority shareholders by Schneider Electric. CONFIDENTIAL | DRAFT 33.8x 33.5x 32.1x 31.0x 30.9x 29.3x(4) 28.9x
Premium Min Range: <10% 10% 20% 30% 40% 50% 60% 70% 80% Max Range: 10% 20% 30% 40% 50% 60% 70% 80% >80% # of Transactions 55 83 101 64 51 35 19 11 19 % of Total 13% 19% 23% 15% 12% 8% 4% 3% 4% % of Total At Or Below Range 13% 32% 55% 69% 81% 89% 93% 96% 100% Source: FactSet as of January 24, 2025. Note: Based on FactSet premia and unaffected dates for technology M&A transactions greater than $1Bn enterprise value since 2003. (1) Reflects Echo Proposal of $265.00 per share received on January 22, 2025. CONFIDENTIAL | DRAFT 55 83 101 64 51 35 19 11 19 Median: 28% Premium Selected Technology Transaction Premia Premia in Selected >$1Bn Public Technology Transactions Since 2003 7 1- Day Premia Paid 438 Total Transactions in Data Set 25th Percentile: 18% Premium 75th Percentile: 44% Premium Mean: 33% Premium Echo Proposal(1): 12%
Alpha Financial Overview
35% 36% 35% 42% 39% 43% 44% 44% 29% 30% 29% $360 39% $480 34% $501 37% $638 37% $735 37% $834 $306 $336 FY23A FY24A FY25E FY26E FY27E FY28E FY29E FY30E LFCF Growth: 10% 7% 33% 4% 27% 15% 13% $885 $933 $1,035 $1,156 $1,299 $1,469 $1,669 $1,898 11% 12% 12% 13% 14% 14% 12% FY23A FY24A FY25E FY26E FY27E FY28E FY29E FY30E Actual Summary of Alpha Management Plan Annual Contract Value(1) ($MM) | Growth (%) 9% (2) Forecast FY24A-FY30E CAGR: 13% Revenue ($MM) | Growth (%) Operating Income ($MM) | Margin (%) Levered Free Cash Flow ($MM) | Margin (%) Source: Historical figures per Alpha company filings. Alpha Management Plan provided by Alpha Management as of December 2024, updated in January 2025 for (2) YoY Growth normalized to exclude the effect of a one-time $36M write-off of suspended Russian business. FQ2’25 actuals. (3) ACV Margin = (ACV – non-GAAP expenses) / ACV. Note: Alpha fiscal year ends June 30. % ACV Margin(3) % Margin (ACV-Based) 9 Actual Forecast 27% 28% 35% 39% 43% 46% 50% 50% 38% 40% 45% $562 42% $510 49% $726 54% $926 58% $1,147 58% $1,301 $395 $456 FY23A FY24A FY25E FY26E FY27E FY28E FY29E FY30E Actual Forecast FY24A-FY30E CAGR: 12% Actual Forecast $1,044 (1) Alpha defines ACV as the estimate of the annual value of its portfolio of term license and software maintenance and support, or SMS, contracts, the annual value of SMS agreements purchased with perpetual licenses and the annual value of standalone SMS agreements purchased with certain legacy term license CONFIDENTIAL | DRAFT agreements, which have become an immaterial part of its business. $1,127 $1,236 $1,217 $1,472 $1,713 $1,974 $2,241 10% (1%) 21% 16% 15% 13% 1% 8% FY23A FY24A FY25E FY26E FY27E FY28E FY29E FY30E
10% (1%) 21% 16% 15% 13% 6% 8% 9% 1% 8% $1,035 $1,156 $1,299 $1,469 $1,669 $1,898 $1,019 $1,109 $1,212 $885 $933 FY23A FY24A FY25E FY26E FY27E FY28E FY29E FY30E 12% 12% 13% 14% 14% 9% 9% 9% 12% (2) 11% 9% FY23A FY24A FY25E FY26E FY27E FY28E FY29E FY30E $1,472 $1,713 $1,974 $1,192 $1,217 $1,236 $1,283 $2,241 $1,394 $1,127 $1,044 FY23A FY24A FY25E FY26E FY27E FY28E FY29E FY30E $562 $510 $726 $926 $1,147 $1,301 $521 $576 $650 $395 $456 FY23A FY24A FY25E FY26E FY27E FY28E FY29E FY30E $360 $480 $501 $638 $735 $834 $342 $411 $477 $306 $336 FY23A FY24A FY25E FY26E FY27E FY28E FY29E FY30E 45% 42% 49% 54% 58% 58% 44% 45% 47% 38% 40% 29% 39% 34% 37% 37% 37% 29% 32% 34% 29% 30% 10 Source: Historical figures per Alpha company filings. Alpha Management Plan provided by Alpha Management as of December 2024, updated in January 2025 for (2) YoY Growth normalized to exclude the effect of a one-time $36M write-off of suspended Russian business. FQ2’25 actuals. Alpha street projections based on mean consensus estimates of Wall Street Analyst reports as of January 24, 2025, provided by Alpha Management. (3) ACV Margin = (ACV – non-GAAP expenses) / ACV. Note: Alpha fiscal year ends June 30. (4) Rule of 40 = Revenue Growth + LFCF Margin. Non-GAAP Operating Income ($MM) Levered Free Cash Flow ($MM) Levered Free Cash Flow Margin (%) FY24A-FY30E CAGR: Mgmt. Plan: 13% Street (FY27E): 9% - FY23A FY24A FY25E FY26E FY27E FY28E FY29E FY30E Ro40(4): Mgmt: 36% 38% 39% 38% 55% 54% 52% 51% FY23A FY24A FY25E FY26E FY27E FY28E FY29E FY30E FY23A FY24A FY25E FY26E FY27E FY28E FY29E FY30E Street: 36% 38% 34% 40% 43% - - # o Alpha Management Plan vs. Street ACV ($MM)(1) Revenue ($MM) Legend Management Plan Street Case FY24A-FY30E CAGR: Mgmt. Plan: 12% Street (FY27E): 7% 8 8 6 Revenue Growth (%) f Brokers for Consensus: 5 4 3 # ACV Gro wth ( %)(1) of Brokers for Consensus: # of Brokers for Consensus: 8 8 6 # Non-GA AP O pera ting M argin (%) 6 6 4 of Brokers for Consensus: - 27% 28% 35% 39% 43% 46% 50% 50% 27% 28% 34% 36% 39% - - % ACV Margin(3): Mgmt: Street: - 35% 36% 35% 42% 39% 43% 44% 44% 35% 36% 34% 37% 39% - - % Margin (ACV-Based): Mgmt: Street: Revenue and profitability metrics are impacted by timing of bookings FY24A-FY30E CAGR: Mgmt. Plan: 19% Street (FY27E): 13% FY24A-FY30E CAGR: Mgmt. Plan: 16% Street (FY27E): 12% (1) Alpha defines ACV as the estimate of the annual value of its portfolio of term license and software maintenance and support, or SMS, contracts, the annual value of SMS agreements purchased with perpetual licenses and the annual value of standalone SMS agreements purchased with certain legacy term license CONFIDENTIAL | DRAFT agreements, which have become an immaterial part of its business.
CONFIDENTIAL | DRAFT Date Company Broker Rating Price Targets Post Investor Post Echo Prop. Day (9/17) (11/4) & Q1'25 % Change Valuation Methodology 12/11/24 Baird Buy $250.00 $275.00 10% 42.0x FY26E FCF 11/5/24 BofA Securities Buy 260.00 260.00 - 25.0x CY26E EBITDA 11/4/24 Loop Capital Buy 260.00 260.00 - 36.0x FY27E FCF, 12.0x FY27E Revenue 11/6/24 Berenberg Hold 265.00 250.00 (6%) 36.0x CY25E FCF 11/5/24 Piper Sandler Hold 217.00 240.00 11% Echo offer 11/5/24 William Blair Hold - - 39.0x CY25E FCF 11/4/24 Wolfe Research Hold - - 35.0-40.0x CY25E FCF 11/4/24 KeyBanc Hold - - 37.5x FY26E FCF Median $260.00 $260.00 9.4% Premium to Alpha share price of $237.59 as of 11/4, 1-day prior to Echo’s $240 public proposal Average $250.40 $257.00 Summary of Alpha Broker Valuation Methodologies Baird BofA Securities Source: Wall Street research and FactSet as of January 24, 2025. Note: Alpha fiscal year ends June 30. (1) Reflects Echo Proposal of $265.00 per share received on January 22, 2025. Buy: 38% Hold: 63% Sell: 0% FCF 75% Valuation Methodology Summary Revenue 13% EBITDA 13% $275.00 $260.00 $260.00 $250.00 $240.00 Loop Capital Berenberg Piper Sandler 11 Echo Proposal(1): $265.00 Alpha as of 11/4/24: $237.59
Alpha Trading Overview
0.0x 10.0x 20.0x 30.0x 40.0x 70.0x 60.0x 50.0x 80.0x Jan-14 Jul-14 Jan-15 Jul-15 Jan-16 Jul-16 Jan-17 Jul-17 Jan-18 Jul-18 Jan-19 Jul-19 Jan-20 Jul-20 Jan-21 Jul-21 Jan-22 Jul-22 Jan-23 Jul-23 Jan-24 Jul-24 Jan-25 Alpha NTM LFCF Multiple Over Time vs. Technical Software Peers From January 2, 2014 to Current (January 24, 2025) NTM LFCF Mult. (10-Day Moving Average) 13 Source: Factset mean consensus estimates as of January 24, 2025. Technical Software Index includes Aveva, Cadence, Synopsys, Autodesk, PTC, Bentley Systems, Dassault, and Nemetschek. Includes Aveva until 8/23/2022, the last unaffected trading date prior to announcement of a transaction with Schneider. Excludes Cadence and Synopsys. Multiple as of November 4, 2024, 1-day prior to Echo's $240.00 public proposal for the remaining shares of Alpha. CONFIDENTIAL | DRAFT Alpha (11/4/24): 40.0x(3) Tech. SW. Index Current(1): 41.9x Tech. SW. Index (Excl. EDA)(2) Current: 36.0x 1st Echo Transaction Announce (October 11, 2021) | Close (May 16, 2022) Average discount / premium to: Technical SW. Index: (12%) Tech. SW. Excl. EDA: (18%) Avg. discount / premium to: Technical SW. Index: (7%) Tech. SW. Excl. EDA: 1% Alpha Selected Companies CY25 LFCF Range: 26.0 – 40.0x Implied NTM Mult. Range: 28.6 – 43.9x Average Statistics 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 YTD Current Technical Software Index 17.8x 20.9x 24.1x 27.5x 33.5x 32.1x 36.6x 42.8x 31.2x 37.1x 41.6x 40.1x 41.9x Tech. SW. Index (Excl. EDA) Alpha 19.2x 20.5x 22.6x 18.2x 27.2x 20.5x 29.9x 25.5x 37.7x 29.9x 33.2x 30.1x 37.4x 27.0x 44.2x 32.9x 29.8x 36.1x 35.4x 30.8x 36.2x 36.4x 34.6x - 36.0x 40.0x(3) Alpha NTM Rev. Growth 11% 7% 2% 2% 7% 3% 10% 1% 11% 9% 8% 13% 13% Alpha NTM LFCF Margin 45% 42% 40% 36% 41% 46% 45% 41% 36% 35% 32% 31% 31%
CONFIDENTIAL | DRAFT 33% 31% 34% 30% 28% 27% 24% 24% 40% 38% 33% 26% 26% 22% Alpha Street Alpha Mgmt. PTC Autodesk Cadence Bentley Synopsys Nemetschek Dassault Adobe Palo Alto Networks Salesforce Workday Informatica SAP Median: 30% Median: 28% 28% 46% 44% 46% 43% 43% 38% 36% 36% 30% 49% 40% 34% 31% 30% 30% Alpha Street Alpha Mgmt. Cadence Synopsys PTC Autodesk Bentley Dassault Nemetschek Adobe Salesforce Informatica Workday SAP Palo Alto Networks Median: 33% Median: 38% 31% 36% 29% 27% 25% 24% 23% 39% 35% 32% 27% 24% 15% Alpha Street Alpha Mgmt. PTC Cadence Autodesk Nemetschek Bentley Synopsys Dassault Adobe Palo Alto Networks Salesforce Informatica Workday SAP Median: 30% Median: 27% 27% 10% 8% 17% 14% 13% 12% 11% 6% 15% 13% 9% 7% Alpha Street Alpha Mgmt. Synopsys PTC Cadence Autodesk Bentley Dassault Palo Alto Networks Workday Adobe Salesforce SAP Informatica Median: 9% 9% 9% Median: 13% 13% CY25E Operating Statistics of Selected Companies Source: Factset mean consensus estimates as of January 24, 2025. Alpha street projections based on mean consensus estimates of Wall Street Analyst reports as of January 17, 2025 provided by Alpha Management. Alpha Management Plan provided by Alpha Management as of December 2024, updated in January 2025 for FQ2’25 actuals. Note: Alpha fiscal year ends June 30. (1) Nemetschek CY25E growth PF for the acquisition of GoCanvas. (2) Rule of 40 = Revenue Growth + LFCF Margin. Legend Selected Engineering Software Selected Profitable Software CY25E Rev ($MM) $1,249 $1,235 $7,098 $2,620 $5,243 $6,906 $1,191 $1,496 $7,015 $9,796 $9,528 $23,505 $41,346 $39,443 $1,783 Revenue Growth NTM UFCF Margin LFCF Margin 44% 39% 47% 42% 41% 39% 44% 35% 29% 49% 52% 42% 39% 33% 30% Nemetschek (1) 14 FY25 ACV Guidance: ~9% Growth EBITDA Margin CY25E Rule of 40(2) Terminal FY2030E: 31% 40% Terminal FY2030E: 13%
39.5x 44.2x 60.5x 50.9x 45.1x 42.2x 36.4x 32.7x 27.0x 57.6x 37.6x 31.1x 24.7x 21.0x 18.1x Cadence Synopsys Nemetschek Bentley Autodesk Dassault PTC SAP Palo Alto Networks Workday Salesforce Adobe Informatica Median: 27.9x Median: 42.2x 36.4x 40.6x 60.9x 47.9x 45.5x 33.4x 32.4x 31.7x 26.2x 40.7x 35.2x 29.1x 23.9x 21.0x 17.4x Cadence Nemetschek Synopsys Bentley Autodesk Dassault PTC SAP Palo Alto Networks Workday Salesforce Adobe Informatica Median: 26.5x Median: 33.4x 26.1x 29.2x 39.8x 37.3x 28.5x 26.7x 25.7x 22.0x 20.5x 42.4x 28.2x 23.2x 19.6x 16.8x 14.1x Median: 21.4x Median: 26.7x 12.1x 13.5x 17.2x 11.9x 11.6x 10.3x 9.7x 9.4x 7.4x 12.6x 8.5x 7.2x 4.8x Median: 8.0x 8.2x 7.8x Median: 10.3x CY25E Operating Statistics of Selected Companies Source: Factset mean consensus estimates as of January 24, 2025. Alpha street projections based on broker mean consensus estimates provided by Alpha Management as of November 2024, post Q1’FY25 earnings. (1) Reflects Echo Proposal of $265.00 per share received on January 22, 2025. Legend Selected Engineering Software Selected Profitable Software Revenue Multiple NTM UFCF Multiple LFCF Multiple 15 EBITDA Multiple EV ($Bn) CONFIDENTIAL | DRAFT $15.1 $16.8 $90.2 $14.2 $82.4 $15.4 $66.8 $24.6 $51.9 $123.5 $334.9 $193.0 $324.1 $68.3 $8.6 Selected Companies LFCF Range: 26.0x-40.0x DCF UFCF Range: 20.0x-30.0x 1D Prior to Echo Proposal(1) Cadence Nemetschek Synopsys Bentley Autodesk PTC Dassault Palo Alto SAP Adobe Salesforce Workday Informatica Echo Prop. @ $265.00 Networks 1D Prior to Echo Proposal(1) Nemetschek Cadence Bentley Synopsys Autodesk PTC Dassault Palo Alto SAP Workday Salesforce Adobe Informatica Echo Prop. @ $265.00 Networks 1D Prior to Echo Proposal (1) Echo Prop. @ $265.00 1D Prior to Echo Proposal (1) Echo Prop. @ $265.00
Alpha Valuation Analysis
Summary of Alpha Unlevered Free Cash Flow Projections CONFIDENTIAL | DRAFT 17 Alpha Management Plan provided by Alpha Management as of December 2024, updated in January 2025 for FQ2’25 actuals. ACV Margin = (ACV – non-GAAP expenses) / ACV. Long-term steady state taxes per Alpha Management assumed in FY2030 (assumes no DTL-related taxes, remaining DTLs of $274MM in FY29E valued separately). ($MM, except per share amounts) Alpha Management Plan (1) '25E- Terminal '30E H2'FY25E FY26E FY27E FY28E FY29E FY30E CAGR ACV $1,035 $1,156 $1,299 $1,469 $1,669 $1,898 13% % Growth 11% 12% 12% 13% 14% 14% Revenue $716 $1,217 $1,472 $1,713 $1,974 $2,241 13% % Growth - (1%) 21% 16% 15% 13% Non-GAAP Operating Income $364 $510 $726 $926 $1,147 $1,301 ACV Non-GAAP Operating Margin (2) - 39% 43% 46% 50% 50% % Margin (Revenue-Based) 51% 42% 49% 54% 58% 58% Less: Cash Taxes (3) (72) (120) (153) (179) (223) (192) Net Operating Profit After Taxes $293 $390 $573 $747 $924 $1,109 % Margin (ACV-Based) - 34% 44% 51% 55% 58% % Margin (Revenue-Based) 41% 32% 39% 44% 47% 50% Less: Capital Expenditures & Cap. SW Costs (9) (16) (15) (15) (15) (15) Plus: Depreciation 4 10 13 17 19 19 Less: Change in NWC 14 45 (119) (164) (257) (287) Plus: Interest Income from LT Rev. Contracts (ASC 606) 29 53 50 54 64 64 Unlevered Free Cash Flow $330 $481 $502 $639 $736 $891 % Margin (ACV-Based) - 42% 39% 44% 44% 47% % Margin (Revenue-Based) 46% 40% 34% 37% 37% 40% Cumulative Dilution - 0.5% 1.0% 1.5% 2.0% -
Alpha Discounted Cash Flow Analysis acquisition of Open Grid, expected to be paid in FY26. CONFIDENTIAL | DRAFT Note: Present values as of December 31, 2024, assuming mid-period convention. Alpha Management Plan provided by Alpha Management as of December 2024, updated in January 2025 for FQ2’25 actuals. Alpha balance sheet statistics per Alpha Management for the period ended December 31, 2024. Cash adjusted for $9MM holdback related to (3) Alpha common shares outstanding, RSUs, PSUs, and options as of January 17, 2025 per Alpha Management. Fully-diluted shares calculated using treasury stock method. Summary of Discounted Cash Flow Assumptions − Unlevered free cash flow projections and terminal value discounted to December 31, 2024 using mid-period convention − Excludes the impact of stock-based compensation, amortization of intangibles, non-recurring expenses, and other non-cash items in unlevered free cash flow − Weighted average cost of capital range of 9.5% to 11.5% − Terminal value based on NTM UFCF multiple range of 20.0x to 30.0x and terminal year (FY30E) UFCF of $891MM − Assumes current shareholders incur ~2% cumulative dilution through issuance of equity awards over the projected period, per Alpha Management Implied Perpetuity Growth Rate 4.3% 5.3% 6.0% 5.2% 6.3% 7.0% 6.2% 7.3% 8.0% PV of Unlevered FCFs Adj. for Dilution (H2'FY25E - FY29E) (1) $2,156 $2,156 $2,156 $2,113 $2,113 $2,113 $2,072 $2,072 $2,072 PV of Terminal Value Adj. for Dilution (FY30E & Beyond) (1) 11,608 14,509 17,411 11,142 13,928 16,713 10,700 13,374 16,049 % of Enterprise Value in Terminal Value 84% 87% 89% 84% 87% 89% 84% 87% 89% Implied Enterprise Value $13,764 $16,665 $19,567 $13,255 $16,041 $18,826 $12,771 $15,446 $18,121 Less: Debt (2) (7) (7) (7) (7) (7) (7) (7) (7) (7) Plus: Cash (2) 173 173 173 173 173 173 173 173 173 Less: PV of DTLs (FY30E & Beyond) (1) (153) (153) (153) (144) (144) (144) (137) (137) (137) Implied Equity Value $13,777 $16,679 $19,581 $13,277 $16,063 $18,848 $12,801 $15,476 $18,151 Implied Price Per Share (3) $215.18 $260.20 $305.22 $207.42 $250.64 $293.85 $200.02 $241.53 $283.03 ($MM, except per share amounts) Present Value as of December 31, 2024 Discount Rate: 9.5% 10.5% 11.5% Terminal NTM UFCF Multiple: 20.0x 25.0x 30.0x 20.0x 25.0x 30.0x 20.0x 25.0x 30.0x 18
Selected Companies Analysis Alpha street projections based on mean consensus estimates of Wall Street Analyst reports as of January 24, 2025, provided by Alpha Management. Alpha Management Plan provided by Alpha Management as of December 2024, updated in January 2025 for FQ2’25 actuals. Alpha common shares outstanding, RSUs, PSUs, and options as of January 17, 2025 per Alpha Management. Fully-diluted shares calculated using treasury stock method. 19 Selected Companies Analysis Alpha Street (1) Alpha Management (2) Reference Range Statistic Low High Reference Range Statistic Low High CONFIDENTIAL | DRAFT Equity Value / CY25E LFCF Multiple $418 $382 Trading Multiple 26.0x 40.0x 26.0x 40.0x Implied Alpha Price (3) $170.01 $260.90 $155.51 $238.66 ($MM, except per share amounts)
Selected Transaction Statistics Selected Public Software Transactions Above $1 Billion Since 2011 with Revenue Growth Between ~0% and 20% and LFCF Margin > ~20%(1) ($MM) Source: Capital IQ, FactSet, company filings, company press releases and Wall Street research. (1) (2) (3) Includes Altair, Altium, Mentor Graphics, and Medidata transactions. NTM statistics based on mean analyst consensus estimates for the next twelve-month period as of transaction announcement. Unaffected premium indicates premium based on day prior to rumors of a potential transaction, or premium based on day prior to transaction announcement if no substantial rumors existed. Note: Selected Transactions sorted by announce date. Multiples greater than 80.0x, Adj. Rev. Mult.s greater than 4.0x, and Adj. LFCF Mults. greater than 7.0x, or negative mults (4) noted as dashes. (5) (6) Levered free cash flow based on cash flow from operations less capital expenditures and capitalized software. AVEVA statistics reflect 2022 buy-out of its minority shareholders by Schneider Electric. Alpha common shares outstanding, RSUs, PSUs, and options as of January 17, 2025 per Alpha Management. Fully-diluted shares calculated using treasury stock method. Alpha balance sheet statistics per Alpha Management for the period ended December 31, 2024. Cash adjusted for $9MM holdback related to acquisition of Open Grid, expected to be paid in FY26. Legend * Transaction Consideration Included Stock Recent Technical SW Transactions 20 Median: 6.4x 19.4x 23.6x 30% 5% 9% 31% 23% Mean: 6.7 22.4 27.1 34% 3% 10% 31% 23% Mean of Recent Technical SW Transactions: 13.2x 41.6x 55.1x 32% 8% 14% 33% 25% Echo Proposal @ $265.00 (6): $16,989 $16,822 13.6x 29.3x 44.6x 12% 10% 13% 46% 31% NTM Transaction Multiples (2) Unaffected Premium (3) NTM Operating Statistics Annc. FD Equity FD Enterprise LTM Revenue EBITDA LFCF Date Target Acquiror Value Value Revenue EBITDA LFCF(5) 1-Day High Growth Margin Margin (4) 10/31/24 Altair Engineering (1) Siemens $10,595 $10,100 14.6x 64.4x 77.6x 19% 13% 8% 23% 20% 09/24/24 Smartsheet Blackstone & Vista Equity 8,351 7,645 6.4 35.0 31.1 25% 16% 15% 18% 22% 09/09/24 Squarespace Permira 7,013 7,237 5.6 22.9 23.2 22% 22% 17% 24% 23% 07/25/24 Instructure KKR 3,631 4,721 6.9 16.9 20.1 16% (17%) 6% 41% 26% 06/07/24 PowerSchool Bain Capital 4,894 5,838 7.2 21.0 28.2 37% (9%) 12% 34% 21% 02/15/24 Altium (1) Renesas 5,919 5,718 16.2 43.9 60.6 34% 31% 25% 37% 28% 01/16/24 Ansys * Synopsys 34,634 34,841 14.5 33.5 48.8 29% 12% 12% 43% 29% 09/21/23 Splunk Cisco 28,133 29,552 7.1 30.9 29.3 31% 26% 9% 23% 23% 12/12/22 Coupa Thoma Bravo 6,675 8,003 8.4 37.5 39.3 77% (61%) 16% 23% 18% 09/21/22 AVEVA (5) Schneider Electric 11,461 11,934 7.5 24.7 33.4 47% (24%) 10% 30% 22% 05/26/22 VMware * Broadcom 61,083 70,200 5.1 15.1 16.6 44% (17%) 6% 34% 27% 05/04/22 Black Knight * Intercontinental Exchange 13,259 15,873 9.7 19.7 28.2 43% 2% 8% 49% 29% 01/31/22 Citrix Evergreen Coast & Vista 13,633 16,519 5.1 16.0 17.9 30% (28%) 3% 32% 23% 12/20/21 Cerner Oracle 28,305 28,938 4.8 14.1 23.9 20% 14% 6% 34% 20% 12/07/21 Mimecast Permira 5,822 5,538 8.8 32.1 40.6 16% 13% 14% 27% 23% 11/07/21 McAfee Investor Group 11,958 14,472 7.4 17.0 14.5 23% (17%) 12% 44% 42% 08/19/21 Inovalon Nordic Capital 6,415 7,209 8.8 25.0 41.5 25% 20% 14% 35% 19% 08/05/21 Cornerstone OnDemand Clearlake 4,127 5,238 5.9 18.8 18.4 31% 4% 7% 31% 25% 12/21/20 RealPage Thoma Bravo 9,101 10,186 8.2 28.9 37.8 31% 28% 12% 28% 19% 12/17/19 LogMeIn Francisco Partners 4,337 4,418 3.4 10.7 14.0 25% (11%) 4% 32% 24% 06/12/19 Medidata (1) Dassault Systèmes 5,897 5,785 7.5 31.0 – 17% 4% 17% 24% 6% 10/28/18 Red Hat IBM 34,630 33,622 9.3 33.8 33.8 63% 8% 17% 27% 28% 03/06/18 CommerceHub GTCR & Sycamore 1,069 1,049 8.6 20.5 26.8 25% (4%) 10% 42% 33% 12/14/16 Neustar Golden Gate Capital 1,997 2,882 2.3 5.0 5.9 45% 21% 9% 45% 27% 11/14/16 Mentor Graphics (1) Siemens 4,529 4,521 3.7 15.7 – 21% 21% 11% 23% 8% 09/19/16 Infoblox Vista 1,611 1,353 3.7 19.4 21.9 72% (5%) 3% 19% 20% 07/07/16 AVG Avast 1,341 1,452 3.2 9.0 13.2 34% (13%) 3% 36% 23% 06/15/15 DealerTrack Cox Automotive 3,997 4,617 4.1 19.4 20.0 59% 27% 20% 21% 18% 04/07/15 Informatica Permira & CPP 5,295 4,874 4.3 18.1 22.1 27% 17% 8% 24% 21% 02/02/15 Advent Software SS&C Technologies 2,501 2,683 6.4 18.0 24.1 44% 26% 6% 36% 25% 12/15/14 Riverbed Technology Thoma Bravo 3,543 3,580 3.2 11.5 15.5 39% (6%) 3% 28% 20% 05/06/13 BMC Investor Group 7,032 7,136 3.1 7.9 10.6 14% (18%) 5% 39% 29% 07/02/12 Quest Software Dell 2,529 2,386 2.5 10.9 12.8 44% 1% 7% 23% 21% 07/01/11 Blackboard Providence Equity 1,638 1,750 3.2 12.6 16.2 21% 5% 17% 25% 18% CONFIDENTIAL | DRAFT
Selected Transactions Analysis Note: NTM represents the 12-month period ended September 30, 2025. Alpha street projections based on mean consensus estimates of Wall Street Analyst reports as of January 24, 2025, provided by Alpha Management. Alpha common shares outstanding, RSUs, PSUs, and options as of January 17, 2025 per Alpha Management. Fully-diluted shares calculated using treasury stock method. Alpha balance sheet statistics per Alpha Management for the period ended December 31, 2024. Cash adjusted for $9MM holdback related to acquisition of Open Grid, expected to be paid in FY26. 21 Reference Range Statistic Low High Alpha Street (1) Enterprise Value / NTM Revenue Multiple Selected Multiple Range $1,239 7.5x 14.5x Implied Alpha Share Price (2) $147.93 $282.13 Enterprise Value / NTM EBITDA Multiple Selected Multiple Range $574 24.7x 33.5x Implied Alpha Share Price (2) $224.15 $302.90 Equity Value / NTM Levered Free Cash Flow Multiple Selected Multiple Range $381 33.4x 48.8x Implied Alpha Share Price (2) $198.45 $289.64 ($MM, except per share amounts) Selected Transactions Analysis CONFIDENTIAL | DRAFT
Appendix Cost of Capital
Alpha Cost of Capital Calculation (1/2) Overall Historical Unlevered Beta Betas Predicted Unlevered Beta Alpha (4) 0.70 0.90 Overall Median 1.19 0.93 Unlevered Beta Calculation Alpha (4) 0.47 0.60 Overall Median 0.39 0.31 Unlevered Beta 0.86 0.91 ($MM, except per share information) WACC Analysis Betas Current FD Historical(1) Predicted(2) Stock Equity Levered Unlevered Levered Unlevered Price Value Debt Equity / Debt Tax Rate Beta Beta Beta Beta Alpha (1-Day Prior to Prop.) (3)(4) $237.59 $15,222 $7 100% / 0% 20% 0.70 0.70 0.90 0.90 Selected Companies SAP $276.29 $346,084 $7,755 98% / 2% 21% 1.13 1.11 0.65 0.64 Salesforce 333.88 329,809 9,297 97% / 3% 21% 1.22 1.19 1.05 1.02 Adobe 435.38 195,224 7,650 96% / 4% 18% 1.15 1.11 1.09 1.06 Palo Alto Networks 187.70 130,392 541 100% / 0% 22% 1.30 1.30 0.97 0.97 Cadence 320.48 90,193 2,850 97% / 3% 17% 1.16 1.13 0.88 0.85 Synopsys 546.19 86,362 16 100% / 0% 21% 1.20 1.20 0.94 0.93 Workday 258.28 72,412 3,000 96% / 4% 19% 1.27 1.23 1.09 1.05 Autodesk 300.83 66,450 2,303 97% / 3% 18% 1.27 1.23 0.90 0.88 Dassault 38.73 52,902 2,841 95% / 5% 15% 0.84 0.81 1.09 1.04 PTC 188.96 23,090 1,753 93% / 7% 24% 1.25 1.18 0.85 0.80 Bentley 46.10 14,084 1,431 91% / 9% 20% 1.27 1.17 0.97 0.89 Nemetschek 119.27 13,776 667 95% / 5% 20% 1.51 1.45 1.10 1.06 Informatica 24.76 8,059 1,828 82% / 18% 24% 1.44 1.23 1.06 0.90 Median Mean 96% / 4% 95% / 5% 1.25 1.23 1.19 1.18 0.97 0.97 0.93 0.93 Sources: FactSet, Bloomberg, Barra. Note: Prices as of January 24, 2025. Debt includes currently outstanding face value of 'in-the-money' convertible debt and excludes minority interests. Based on Bloomberg, 5-year weekly betas as of December 31, 2024. Based on Barra betas as of December 31, 2024. Alpha balance sheet statistics per Alpha Management for the period ended December 31, 2024. Cash adjusted for $9MM holdback related to acquisition of Open Grid, expected to be paid in FY26. Alpha historical beta represents 2-year weekly, capturing trading history post close of initial Echo transaction in October 2022. Alpha historical and predicted betas as of October 31, 2024, prior to Echo's Proposal of $240.00 per share received on November 5, 2024. 23 CONFIDENTIAL | DRAFT
Alpha Cost of Capital Calculation (2/2) Market Assumptions Risk Free Rate (1) 4.9% 6.2% - 7.2% Market Risk Premium(2) Size Premium(3) Historical Predicted 0.5% 0.0% Cost of Capital Calculation - Equity Market Risk Premium / Unlevered Predicted Beta Sensitivity WACC(4) Unlevered Levered Equity Market Risk Prem.: 6.2% 6.7% 7.2% Beta (5) Beta Debt as % of Cap.: 0% 0% 0% 23 CONFIDENTIAL | DRAFT Cost of Capital Calculation - Equity Market Risk Premium / Unlevered Historical Beta Sensitivity WACC(4) Unlevered Levered Equity Market Risk Prem.: 6.2% 6.7% 7.2% Beta (6) Beta Debt as % of Cap.: 0% 0% 0% 0.91 0.91 <--- Overall Blended 10.6% 11.0% 11.4% 0.90 0.90 <--- Standalone 10.5% 10.9% 11.4% 0.86 0.86 <--- Overall Blended 10.7% 11.1% 11.5% 0.70 0.70 <--- Standalone 9.7% 10.0% 10.4% Note: Unlevered Betas based on median of peer group. Based on 20-Year U.S. Interpolated Treasury Yield as of January 24, 2025. Source: FactSet. Long-horizon expected equity risk premium (historical) and Long-horizon expected equity risk premium (supply-side) based on Duff & Phelps Cost of Capital Navigator (2024). Size premium based on Duff & Phelps Cost of Capital Navigator (2024). WACC equals (Rd*(1 - t)*D / Net Capital) + Re*E / Net Capital. Net Capital equals D + E Re equals Rf + βlevered*(Rm - Rf) + Sp. Based on Barra betas as of December 31, 2024. Alpha predicted beta as of October 31, 2024. Based on Bloomberg, 5-year weekly betas as of December 31, 2024. Alpha 2-year weekly beta as of October 31, 2024.
Appendix Supplementary Information
CONFIDENTIAL | DRAFT Statistics of Selected Companies Source: FactSet mean consensus estimates as of January 24, 2025. Alpha common shares outstanding, RSUs, PSUs, and options as of January 17, 2025 per Alpha Management. Fully-diluted shares calculated using treasury stock method. Alpha balance sheet statistics per Alpha Management for the period ended December 31, 2024. Cash adjusted for $9MM holdback related to acquisition of Open Grid, expected to be paid in FY26. Note: Multiples greater than 75x or negative noted as dashes. (1) Rule of 40 = Revenue Growth + LFCF Margin. 26 1-Day Prior to Echo Prop. $237.59 $15,222 $15,056 12.1x 11.5x 26.1x 25.1x 36.4x 35.7x $1,249 $1,308 10% 5% 46% 46% 33% 33% 44% 37% Echo Proposal $265.00 $16,989 $16,822 13.5x 12.9x 29.2x 28.1x 40.6x 39.9x $1,249 $1,308 10% 5% 46% 46% 33% 33% 44% 37% Selected Engineering Software Cadence (Dec.) $320.48 $90,193 $90,152 17.2x 15.6x 37.3x 33.3x 60.9x 47.6x $5,243 $5,796 13% 11% 46% 47% 28% 33% 41% 43% Synopsys (Oct.) 546.19 86,362 82,359 11.6 10.5 26.7 23.9 45.5 38.7 7,098 7,829 17% 10% 43% 44% 27% 28% 44% 39% Autodesk (Jan.) 300.83 66,450 66,776 9.7 8.6 25.7 22.5 32.4 28.3 6,906 7,722 13% 12% 38% 38% 30% 30% 42% 42% Dassault (Dec.) 38.73 52,902 51,910 7.4 6.9 20.5 19.0 31.7 28.9 7,015 7,546 6% 8% 36% 36% 24% 24% 29% 32% PTC (Sep.) 188.96 23,090 24,576 9.4 8.4 22.0 19.5 26.2 22.7 2,620 2,917 14% 11% 43% 43% 34% 35% 47% 46% Bentley (Dec.) 46.10 14,084 15,418 10.3 9.3 28.5 25.6 33.4 31.6 1,496 1,656 11% 11% 36% 36% 28% 27% 39% 38% Nemetschek (Dec.) 119.27 13,776 14,206 11.9 10.4 39.8 32.5 47.9 40.3 1,191 1,367 12% 15% 30% 32% 24% 25% 36% 40% Median 10.3x 9.3x 26.7x 23.9x 33.4x 31.6x 13% 11% 38% 38% 28% 28% 41% 40% Mean 11.1x 10.0x 28.7x 25.2x 39.7x 34.0x 12% 11% 39% 40% 28% 29% 40% 40% Selected Profitable Software SAP (Dec.) $276.29 $346,084 $334,933 8.5x 7.6x 28.2x 24.5x 40.7x 31.3x $39,443 $44,146 9% 12% 30% 31% 22% 25% 30% 37% Salesforce (Jan.) 333.88 329,809 324,131 7.8 7.2 19.6 17.9 23.9 21.6 41,346 44,987 9% 9% 40% 40% 33% 34% 42% 43% Adobe (Nov.) 435.38 195,224 192,988 8.2 7.5 16.8 15.4 21.0 19.0 23,505 25,774 9% 10% 49% 49% 40% 40% 49% 50% Palo Alto Networks (Jul.) 187.70 130,392 123,528 12.6 11.0 42.4 37.0 35.2 29.1 9,796 11,190 15% 14% 30% 30% 38% 40% 52% 54% Workday (Jan.) 258.28 72,412 68,255 7.2 6.3 23.2 18.7 29.1 23.1 9,528 10,806 13% 13% 31% 34% 26% 29% 39% 42% Informatica (Dec.) 24.76 8,059 8,647 4.8 4.5 14.1 12.9 17.4 15.4 1,783 1,926 7% 8% 34% 35% 26% 27% 33% 35% Median 8.0x 7.3x 21.4x 18.3x 26.5x 22.4x 9% 11% 33% 34% 30% 31% 41% 43% Mean 8.2x 7.4x 24.0x 21.1x 27.9x 23.2x 10% 11% 36% 36% 31% 33% 41% 44% ($MM, except per share information) FD Capitalization Trading Multiples Operating Statistics Ent. Value / Equity Value / Revenue EBITDA LFCF Rule Stock Price Equity Ent. Revenue EBITDA LFCF $ % Growth Margins Margins of 40 (1) Company (FYE) 1/24/2025 Value Value CY25E CY26E CY25E CY26E CY25E CY26E CY25E CY26E '24-25E '25-26E CY25E CY26E CY25E CY26E CY25E CY26E
Alpha Deferred Tax Liability Schedule Source: DTL runoff as provided by Alpha Management. (1) Alpha Management Plan provided by Alpha Management as of December 2024, updated in January 2025 for FQ2’25 actuals. 27 ($MM) Alpha DTL Schedule (1) FY30E FY31E FY32E FY33E Beginning DTL Balance $274 $191 $108 $25 Plus: Additional / (Usage) of DTLs (83) (83) (83) (25) DTLs, Ending Balance $191 $108 $25 - Incremental Cash Taxes Due to DTLs ($83) ($83) ($83) ($25) Discount Rate 9.5% 10.5% 11.5% PV of Incremental Tax Due to DTLs (FY30E & Beyond) ($153) ($144) ($137) CONFIDENTIAL | DRAFT
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