Slide 1: June 30, 2012 Quarterly Results Presentation
Exhibit 99.2 ACI’s software underpins electronic payments throughout retail and wholesale banking, and commerce all the time. June 30, 2012 Quarterly Results Presentation July 26, 2012
Slide 2: Safe Harbor For Forward-Looking Statements
Private Securities Litigation Reform Act of 1995 Safe Harbor For Forward-Looking Statements This presentation contains forward-looking statements based on current expectations that involve a number of risks and uncertainties. The forward- looking statements are made pursuant to safe harbor provision
Slide 3: Quarterly Overview
Quarterly Overview Phil Heasley Chief Executive Officer 3
Slide 4: Q2 2012 in Review
Q2 2012 in Review • Corporate consolidation of S1 and ACI now complete – Annualized savings of $53 million between the SG&A and facilities/IT rationalization – focus now on execution of facilities and IT rationalization • Rolled out product and solutions road maps to market and customers at key indu
Slide 5: Business Overview
Business Overview Ralph Dangelmaier President, Global Markets 5
Slide 6: Q2 2012 Overview
Q2 2012 Overview Asia Pacific Americas • Major re-commitment and new BASE24- eps migration by leading card processor in • New Consumer On-line banking solution Taiwan with leading regional bank holding • Professional Services and add-on sales company with 100+ branches with one of Asia’s leading fin
Slide 7: Key Market Drivers
Key Market Drivers • Global trends - regulations, growth, cost reduction and innovation • Innovation • EMV – Americas • EMV will be a catalyst for change around system upgrades and BASE24- eps, Back Office, Token Mgr, and ACI Interchange/Acquirer opportunities • Mobile Initiative – Global • Early gr
Slide 8: Financial Review
Financial Review Scott Behrens Chief Financial Officer 8
Slide 9: Key Takeaways from the Quarter
Key Takeaways from the Quarter Q2 Sales • Strong sales in EMEA, up 49%, led by large UK bank renewal • S1 Acquisition contributed approximately $39 million of sales • Sales, net of term extensions, increased $38.4 million and 52% over Q2-2011 Backlog Impacted by FX Movements • FX movements reduced 6
Slide 10: Key Takeaways from the Quarter (cont)
Key Takeaways from the Quarter (cont) Operating Expense • S1 contributed $45.0 million in expenses for the period • Organic expenses up $2.1 million primarily from higher deferred costs recognized from project go-lives. • $7.6 million of IT-related infrastructure exit costs and severance expense Non
Slide 11: S1 Integration Update
S1 Integration Update Corporate Consolidation now complete Additional cost savings expected to be achieved from facilities and data center consolidation Summary of additional actions as follows: • Close and consolidate 14 redundant offices worldwide • Consolidate Data Centers • 75% of actions comple
Slide 12: Reaffirmation of 2012 Margin Guidance
Reaffirmation of 2012 Margin Guidance Prior Incremental Current Guidance Total One- Guidance Purchase Acct before One-Time Time Trans $ Millions Range Adj Q2-12 FX Impact Trans Exp Exp Revenue $696- $706 (3) (10) $683-$693 Adjusted EBITDA $165- $170 - - $165- $170 (31) Operating Income $99- $104 - -
Slide 13: Appendix
. Appendix f trusted globally
Slide 14: Historic Sales By Quarter 2010-2012
Historic Sales By Quarter 2010-2012 Sales Mix by Category Add-on Business Total Economic Value of New Accounts / New inc. Capacity Quarter-End Sales Applications Upgrades & Term Extension 3/31/2010 $81,142 $5,758 $35,066 $40,318 7% 43% 50% 6/30/2010 $107,985 $1,224 $68,474 $38,287 1% 63% 35% 9/30/20
Slide 15: Sales By Region by Geography and Type
Sales By Region by Geography and Type Total Sales Qtr Ended Qtr Ended % Growth or Channel Jun 12 Jun 11 Decline Americas $68,908 $83,897 -17.9% EMEA 70,071 47,062 48.9% Asia-Pacific 17,209 15,997 7.6% Total Sales $156,188 $146,956 6.3% Sales Type Qtr Ended Qtr Ended % Growth or Sales Type Jun 12 Jun
Slide 16: Backlog as a Contributor of Quarterly Revenue
Backlog as a Contributor of Quarterly Revenue Revenue Qtr Ended Qtr Ended % Growth or Revenue Jun 12 Jun 11 Decline Revenue from Backlog $142,854 $103,219 38.4% Revenue from Sales 6,943 10,147 -31.6% Total Revenue $149,797 $113,366 32.1% Revenue from Backlog 95% 91% Revenue from Sales 5% 9% • Backlo
Slide 17: Operating Free Cash Flow ($ millions)
Operating Free Cash Flow ($ millions) Quarter Ended June 30, 2012 2011 Net cash provided (used) by operating $(5.5 ) $7.5 activities Adjustments: Net after-tax payments associated with employee-related actions* 3.9 - Net after-tax payments associated with S1 related transaction costs* 1.1 - Net afte
Slide 18: 60-Month Backlog ($ millions)
60-Month Backlog ($ millions) Quarter Ended June 30, March 31, June 30, 2012 2012 2011 Americas $1,414 $1,405 $902 EMEA 653 669 534 Asia/Pacific 239 243 193 Backlog 60-Month $2,306 $2,317 $1,629 Deferred Revenue $204 $207 $162 Other 2,102 2,110 1,467 Backlog 60-Month $2,306 $2,317 $1,629 18
Slide 19: Revenues by Channel ($ millions)
Revenues by Channel ($ millions) Quarter Ended June 30, 2012 2011 Revenues: United States $65.3 $ 44.9 Americas International 16.4 13.1 Americas $81.7 $58.0 EMEA 49.6 41.9 Asia/Pacific 18.5 13.5 Revenues $149.8 $113.4 19
Slide 20: Monthly Recurring Revenue ($ millions)
Monthly Recurring Revenue ($ millions) Quarter Ended June 30, 2012 2011 Monthly Software License Fees $24.5 $31.4 Maintenance Fees 49.4 35.6 Hosting Services 31.4 14.1 Monthly Recurring Revenue $105.3 $81.1 20
Slide 21: Deferred Revenue and Expense ($ millions)
Deferred Revenue and Expense ($ millions) Quarter Ended June 30, March 31, June 30, March 31, 2012 2012 2011 2011 Short Term Deferred Revenue $165.1 $177.8 $131.7 $141.4 Long Term Deferred Revenue 38.7 29.5 30.0 33.2 Total Deferred Revenue $203.8 $207.3 $161.7 $174.6 Total Deferred Expense $9.9 $13.
Slide 22: Non-Cash Compensation, Acquisition Intangibles and Software, and Acquisition-Related Expenses
Non-Cash Compensation, Acquisition Intangibles and Software, and Acquisition-Related Expenses Quarter ended Quarter ended June 30, 2012 June 30, 2011 EPS Impact* $ in Millions EPS Impact* $ in Millions Amortization of acquisition- related intangibles 0.05 2.1 0.03 1.1 Amortization of acquisition- re
Slide 23: Other Income / Expense ($ millions)
Other Income / Expense ($ millions) Quarter Ended March 31, June 30, 2012 March 31, 2012 June 30, 2011 2011 Interest Income $0.2 $0.2 $0.2 $0.2 Interest Expense ($2.9) ($1.9) ($0.4) ($0.6) FX Gain / Loss ($0.3) ($0.6) $0.3 ($0.2) Other $0.0 $1.5 $0.0 ($0.1) Total Other Income (Expense) ($3.0) ($0.8)
Slide 24: Adjusted EBITDA
Adjusted EBITDA Quarter Ended Quarter Ended June 30, 2012 June 30, 2011 Net Income (Loss) $(4.7) $9.8 Income tax expense (benefit) (6.2) 0.7 Net Interest Expense 2.7 0.2 Net Other Expense 0.3 (0.3) Depreciation Expense 3.5 1.8 Amortization Expense 9.7 5.5 Non-Cash Compensation Expense 3.5 2.2 Adjust
Slide 25: Non-GAAP Operating Income (loss)
Non -GAAP Operating Income (loss) Quarter Ended June Quarter Ended 30, 2012 June 30, 2011 Operating Income (Loss) $(7.9 ) $10.4 Plus Deferred Revenue 9.6 - Employee-related actions 3.6 - IT exit costs 3.1 - Other one-time S1 related expenses 0.9 - Non-GAAP Operating Income (loss) $9.3 $10.4 25
Slide 26: Non-GAAP Financial Measures
Non-GAAP Financial Measures To supplement our financial results presented on a GAAP basis, we use the non-GAAP measure indicated in the tables, which exclude certain business combination accounting entries and expenses related to the acquisition of S1, as well as other significant non-cash expenses
Slide 27: Non-GAAP Financial Measures
Non-GAAP Financial Measures • Adjusted EBITDA, which is defined as net income (loss) plus income tax expense, net interest income (expense), net other income (expense), depreciation, amortization and non-cash compensation, as well as deferred revenue that would have been recognized in the normal cou
Slide 28: Non-GAAP Financial Measures
Non-GAAP Financial Measures • ACI also includes backlog estimates which are all software license fees, maintenance fees and services specified in executed contracts, as well as revenues from assumed contract renewals to the extent that we believe recognition of the related revenue will occur within
Slide 29: Forward-Looking Statements
Forward-Looking Statements This presentation contains forward-looking statements based on current expectations that involve a number of risks and uncertainties. Generally, forward-looking statements do not relate strictly to historical or current facts and may include words or phrases such as “belie
Slide 30: Forward-Looking Statements
Forward-Looking Statements • All of the foregoing forward-looking statements are expressly qualified by the risk factors discussed in our filings with the Securities and Exchange Commission. Such factors include but are not limited to, risks related to the global financial crisis and the continuing
Slide 31: ACI's software underpins electronic payments
ACI’s software underpins electronic payments throughout retail and wholesale banking, and commerce all the time, without fail. www.aciworldwide.com