Slide 1: First Quarter 2023 Financial Results
First Quarter 2023 Financial Results April 25, 2023
Slide 2: Forward-Looking Statements and Non-GAAP Financial Measures
Forward-Looking Statements and Non-GAAP Financial Measures Forward-Looking Statements This presentation contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including statements regarding anticipated organic revenue growth, adjusted earnings
Slide 3: First Quarter Highlights
First Quarter Highlights • Adjusted Revenue of $4.3 billion, up 10% • Our three international regions combined grew 30% organically • Organic Revenue Growth of 13% • Expanded multiple contracts with major enterprise • Adjusted Earnings Per Share of $1.58, up 13% clients across segments, including Fa
Slide 4: Financial Metric Dashboard
Financial Metric Dashboard Organic Growth: 1Q23 +13% Adjusted Revenue Adjusted Operating Margin % +10% +160bps $4,360 $4,234 $4,273 $4,280 35.2% 39.2% 32.0% 33.5% 33.6% $3,906 1Q22 2Q22 3Q22 4Q22 1Q23 1Q22 2Q22 3Q22 4Q22 1Q23 Adjusted EPS Free Cash Flow +13% +43% $1,405 $1.91 $1.56 $1.63 $1.58 $1.40
Slide 5: Merchant Acceptance Segment
Merchant Acceptance Segment Organic Growth: 1Q23 +18% Adjusted Revenue Highlights +12% 22% $1,901 $1,878 $1,860 $1,847 Clover revenue growth $1,653 $231 billion Clover annualized GPV, up 17% 16% Carat revenue growth 1Q22 2Q22 3Q22 4Q22 1Q23 Adjusted Operating Margin 5% and 5% Margin: merchant volume
Slide 6: Payments and Network Segment
Payments and Network Segment Organic Growth: 1Q23 +13% Adjusted Revenue Highlights +11% Double-digit revenue growth in $1,623 $1,671 $1,635 all three business lines $1,469 $1,524 42% and 32% growth in Zelle® transactions and number of clients, respectively 12% North America credit active account gro
Slide 7: Financial Technology Segment
Financial Technology Segment Organic Growth: 1Q23 +3% Adjusted Revenue Highlights +2% 12 core wins $778 $803 $823 $792 $766 25% of core wins to banks with more than $1 billion in assets Supported our banking clients through the recent turmoil 1Q22 2Q22 3Q22 4Q22 1Q23 Adjusted Operating Margin Margin
Slide 8: 2023 Performance Outlook
2023 Performance Outlook Key Financial Metrics Previous Updated Organic Revenue Growth 7% – 9% 8% – 9% Adjusted EPS $7.25 – $7.40 $7.30 – $7.40 (12% – 14% growth) (12% – 14% growth) Other Financial Metrics Adjusted Operating Margin Expansion >125bps >125bps Free Cash Flow ~$3.8B ~$3.8B See Appendix
Slide 9: Appendix
Appendix Recognized by Fortune® Magazine 9 © 2023 Fiserv, Inc. or its affiliates. World’s Most Admired CompaniesTM 2023
Slide 10: Non-GAAP Financial Measures
Non-GAAP Financial Measures Use of Non-GAAP Financial Measures This presentation includes the following unaudited non-GAAP financial measures: “adjusted revenue,” “adjusted revenue growth,” “organic revenue,” “organic revenue growth,” “adjusted operating income,” “adjusted operating margin,” “adjust
Slide 11: 1Q23 Revenue Details
1Q23 Revenue Details Merchant Payments Financial Corporate Total Acceptance and Network Technology and Other Company GAAP revenue $1,847 $1,629 $792 $279 $4,547 Output solutions postage reimbursements - - - (273) (273) Deferred revenue adjustments - 6 - - 6 Adjusted revenue $1,847 $1,635 $792 $6 $4,
Slide 12: Adjusted Revenue and Adjusted Operating Income
Adjusted Revenue and Adjusted Operating Income Total Company 1Q23 4Q22 3Q22 2Q22 1Q22 Revenue $ 4,547 $ 4,631 $ 4,518 $ 4,450 $ 4,138 Adjustments: Output Solutions postage reimbursements (273) (277) (251) (222) (239) Deferred revenue purchase accounting adjustments 6 6 6 6 7 Adjusted revenue $ 4,280
Slide 13: Adjusted Revenue and Adjusted Operating Income by Segment
Adjusted Revenue and Adjusted Operating Income by Segment Merchant Acceptance Segment 1Q23 4Q22 3Q22 2Q22 1Q22 Revenue $ 1,847 $ 1,860 $ 1,878 $ 1,901 $ 1,653 Operating income $ 562 $ 648 $ 610 $ 593 $ 470 Operating margin 30.5 % 34.8 % 32.4 % 31.2 % 28.4 % $ in millions, unaudited. Operating margin
Slide 14: Adjusted Revenue and Adjusted Operating Income by Segment
Adjusted Revenue and Adjusted Operating Income by Segment Payments and Network Segment 1Q23 4Q22 3Q22 2Q22 1Q22 Revenue $ 1,629 $ 1,665 $ 1,617 $ 1,518 $ 1,462 Adjustments: Deferred revenue purchase accounting adjustments 6 6 6 6 7 Adjusted revenue $ 1,635 $ 1,671 $ 1,623 $ 1,524 $ 1,469 Operating i
Slide 15: Adjusted Revenue and Adjusted Operating Income by Segment
Adjusted Revenue and Adjusted Operating Income by Segment Financial Technology Segment 1Q23 4Q22 3Q22 2Q22 1Q22 Revenue $ 792 $ 823 $ 766 $ 803 $ 778 Operating income $ 280 $ 340 $ 261 $ 281 $ 275 Operating margin 35.4 % 41.3 % 34.1 % 35.0 % 35.4 % $ in millions, unaudited. Operating margin percenta
Slide 16: Adjusted and Organic Revenue by Segment
Adjusted and Organic Revenue by Segment Three Months Ended March 31, 2023 2022 Growth Total Company Revenue $ 4,547 $ 4,138 10% Output Solutions postage reimbursements (273) (239) Deferred revenue purchase accounting adjustments 6 7 Adjusted revenue $ 4,280 $ 3,906 10% Currency impact 109 — Acquisit
Slide 17: Adjusted and Organic Revenue by Segment (cont.)
Adjusted and Organic Revenue by Segment (cont.) Three Months Ended March 31, 2023 2022 Growth Payments and Network Revenue $ 1,629 $ 1,462 11% Deferred revenue purchase accounting adjustments 6 7 Adjusted revenue $ 1,635 $ 1,469 11% Currency impact 21 — Organic revenue 1 $ 1,656 $ 1,469 13% Corporat
Slide 18: International Regions - Organic Revenue
International Regions - Organic Revenue Three Months Ended March 31, 2023 2022 Growth International revenue 1, 2 $ 615 $ 569 Currency impact 105 — Divestiture adjustments — (14) International organic revenue 3 $ 720 $ 555 30% $ in millions, unaudited. Revenue growth is calculated using actual, unrou
Slide 19: Adjusted Net Income and Adjusted EPS
Adjusted Net Income and Adjusted EPS 1Q23 4Q22 3Q22 2Q22 1Q22 GAAP net income attributable to Fiserv $ 563 $ 782 $ 481 $ 598 $ 669 Adjustments: Merger and integration costs 1 48 58 54 39 22 Severance costs 24 75 35 47 52 Amortization of acquisition-related intangible assets 2 427 426 442 471 475 Non
Slide 20: Adjusted Net Income and Adjusted EPS (cont.)
Adjusted Net Income and Adjusted EPS (cont.) 1 Represents acquisition and related integration costs incurred in connection with various acquisitions. Merger and integration costs in the first quarter of 2023 include $20 million of share-based compensation and $14 million of third-party professional
Slide 21: Free Cash Flow
Free Cash Flow 1Q23 4Q22 3Q22 2Q22 1Q22 Net cash provided by operating activities $ 1,130 $ 1,633 $ 1,180 $ 990 $ 815 Capital expenditures (339) (331) (430) (387) (331) Adjustments: Distributions paid to noncontrolling interests and redeemable noncontrolling (8) (12) (8) (9) (13) interests Distribut
Slide 22: Additional Information – Amortization Expense
Additional Information – Amortization Expense Total Amortization 1Q23 1Q22 Acquisition-related intangible assets $ 433 $ 486 Capitalized software and other intangibles 108 80 Purchased software 54 58 Financing costs and debt discounts 10 11 Sales commissions 28 25 Deferred conversion costs 20 16 Tot
Slide 23: 2023 Performance Outlook - Organic Revenue Growth
2023 Performance Outlook - Organic Revenue Growth Growth 2023 Revenue 6% - 7% Output Solutions postage reimbursements (1.0%) 2023 Adjusted revenue 5% - 6% Currency impact 1 2.5% Acquisition adjustments (0.5%) Divestiture adjustments 2 1.0% 2023 Organic revenue 3 8% - 9% See page 10 for information r
Slide 24: 2022 Adjusted Net Income and Adjusted EPS Reconciliation
2022 Adjusted Net Income and Adjusted EPS Reconciliation 2022 GAAP net income attributable to Fiserv $ 2,530 Adjustments: Merger and integration costs 1 173 Severance costs 209 Amortization of acquisition-related intangible assets 2 1,814 Non wholly-owned entity activities 3 9 Net gain on sale of bu
Slide 25: 2022 Adjusted Net Income and Adjusted EPS Reconciliation (cont.)
2022 Adjusted Net Income and Adjusted EPS Reconciliation (cont.) 1 Represents acquisition and related integration costs incurred in connection with various acquisitions. Merger and integration costs primarily includes share-based compensation and third-party professional service fees attributable to
Slide 26: 2022 Adjusted Revenue and Adjusted Operating Income Reconciliation
2022 Adjusted Revenue and Adjusted Operating Income Reconciliation 2022 Revenue $ 17,737 Adjustments: Output Solutions postage reimbursements (989) Deferred revenue purchase accounting adjustments 25 2022 Adjusted revenue $ 16,773 2022 Operating income $ 3,740 Adjustments: Merger and integration cos