Aci Worldwide, Inc. · NASDAQ:ACIW
Aci Worldwide — Investor Conferences December 2014
32 slides from Aci Worldwide's conference presentation, Dec 2, 2014
Slide 1: Slide 1
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Slide 3: Slide 3
Slide 4: ACI Worldwide (ACIW) Investor Conferences December 2014
ACI Worldwide (ACIW) Investor Conferences December 2014 Exhibit 99.1
Slide 5: 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 provisions
Slide 6: About ACI Worldwide
2013 Pro Forma Revenue $1023 Million 2013 Pro Forma Adjusted EBITDA $273 Million 9/30/2014 60-Month Backlog $4.1 Billion Founded in 1975, ACI is a leading provider of electronic payments and transaction banking software solutions for financial institutions, retailers, processors and billers worldwid
Slide 7: Global Distribution and Customer Base
AMERICAS 1,950+ customers EMEA 500+ customers ASIA/PACIFIC 150+ customers 5,000+ customers in over 80 countries rely on ACI solutions Customers: ~ 180 processors globally Customers: ~ 290 retailers globally Customers: 3600+ US billers 18 of the top 20 and 67 of the top 100 global banks are customers
Slide 8: ACI Product Family
Fraud Bill Pay / Collections Online Banking Wholesale Payments Retail Payments ACI Product Family Revenue % Highlights ACI is a Leading Provider of Electronic Payments and Transaction Banking Solutions • Tools to prevent payment transaction fraud and enterprise financial crimes • Case management • I
Slide 9: Diverse Customer Base Provides Significant Cross Sell Opportunities
FY 2013 Revenue by Customer No single customer represents more than 3% of consolidated revenue On average, customers use 3 ACI products or less representing a large cross sell opportunity Diverse Customer Base of Top Global Banks, Processors, Billers and Retailers Provide Significant Cross Sell Oppo
Slide 10: Delivering an Omni-channel Customer Experience for one of the world's largest banks
CHALLENGE • Aspirations to be the primary bank of its customers held back by inconsistent experience caused by legacy technology • Improve cross sell and retention rates BENEFITS • Significant operating cost improvements • New channels deployed in 4 months instead of 18, reducing deployment costs by
Slide 11: Before: Complex Payments Environment Leads to Inconsistent Customer Experience
Before Complex Payments Environment Leads to Inconsistent Customer Experience CORE BANKING Core interface Online banking AML Call center Branch system Payment engine Mobile POS ATM Payment engine Payment engine Fraud detection Fraud detection Fraud detection Payment engine Tablet Payment engine
Slide 12: After: Streamlined, Consistent Omni-channel Experience
After CORE BANKING SYSTEM Payment engine Fraud detection and AML Branch system Online banking Mobile POS ATM Tablet Streamlined, Consistent Omni-channel Experience Call center Future payment types and channels
Slide 13: Attractive trends will drive growth opportunities for ACI
Attractive trends will drive growth opportunities for ACI Industry Dynamics 2 Customer Trends Market Sizing 1 Source: Financial Insights - Worldwide Payments Market Sizing and 3rd Party Consultant Source: McKinsey “Dynamic Changes in the Global Payments Industry”, • Shift from paper to electronic •
Slide 14: Strategy to Drive Superior Performance
Growth Drivers Continuous Improvements to Drive Margin Expansion Disciplined Acquisition / Investment Strategy Strategy to Drive Superior Performance Continued Focus on Control, Profitability and Growth • Continue to increase recurring revenue base • Expand customer relationships by cross-selling (o
Slide 15: Financial Overview
FINANCIAL OVERVIEW
Slide 16: Bookings Growth Leads to Large Backlog
$4,114 $1,566 $1,617 $2,416 $3,861 2014 E Q3 2014 SNET 20%+ CAGR $315 $330 $501 $600 $660+ Renewal rates across ACI products >96% >95% of our contracts are transaction-based NET NEW SALES BOOKINGS HISTORICAL 60-MONTH BACKLOG 25%+ CAGR (millions) (millions) Bookings Growth Leads to Large Backlog Prov
Slide 17: ACI's Financial Summary
30% 21% 24% 28% 29% $1,035 E $418 $465 $689 $871 $270 E $88 $113 $191 $239 2014E NON-GAAP REVENUE 2014E ADJUSTED EBITDA Adjusted EBITDA % Net Margin 25% CAGR 32% CAGR (millions) (millions) 2013 revenue geographic mix: 63% Americas, 26% EMEA and 11% Asia/Pacific ACI’s Financial Summary, 2010 – Notes:
Slide 18: Fixed Costs Provide Leverage in Model
Q2 Q3 • Monthly Recurring Revenue predictable & growing, now >70% of total revenue • Non-recurring revenue is strongest in Q4 • EBITDA margin spikes follow revenue Fixed Costs Provide Leverage in Model $0 $60 $120 $180 $240 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Non Recurring
Slide 19: SaaS Subscriptions and Transactions Contribution Growth
SaaS Subscriptions and Transactions Contribution Growth 2009 segment contribution 2013 segment contribution • SaaS Subscriptions & Transactions have grown from ~10% to over 40% • Overall monthly recurring revenues have grown from ~60% to over 70% • Note: 2013 percentages based normalized for ORCC an
Slide 20: ACI Besse
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Slide 23: Low Cap Ex and Strong Cash Flow
$30 $63 $67 $24 $151 OPERATING FREE CASH FLOW $10 $13 $19 $17 CAPITAL EXPENDITURES % of Non-GAAP Revenue Low capital expenditures needed to maintain existing client base ACI generates strong free cash flow • NOLs starting to contribute and cash taxes much lower than GAAP (millions) (millions) Low Ca
Slide 24: Backlog is Foundation, Cross Sales Add Growth
+ + + + • Existing customer base and low customer attrition provide baseline for future revenue • Competitive positioning and high R&D spending provides pricing power • Electronic payment growth at 6-8% CAGR • Cross sales typically account for 2/3 of net new business Cross sales and new customer win
Slide 25: 2014 Guidance
Key Metrics Low High 2014 Guidance 2014 Guidance • Guidance • Notes Sales bookings, net of term extensions, growth rate for the year is expected to be in the double digits These metrics exclude approximately $18 to $20 million in significant transaction- related expenses and include $2 million for t
Slide 26: Financial Summary – Five-year Targets
Financial Summary – Five-year Targets • Organic revenue growth Mid-to-upper single digits • Adjusted EBITDA margin 100 bps expansion per year • Operating free cash flow Track adjusted EBITDA growth • Sales net of term extension growth High single digits
Slide 27: The ACI Advantage
The Advantage • Leading market position • High retention and renewal rates • Significant recurring revenue • Scalable, fixed-cost model with improving margin • Low cash investment required High-quality Software Model Drives Superior Performance
Slide 28: 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 related to the acquisitions of Online Resources and S1 and significant transaction related exp
Slide 29: Non-GAAP Financial Measures
Non-GAAP Financial Measures Non-GAAP Revenue (millions) Revenue $ $ $ $ Deferred revenue fair value adjustment - - Non-GAAP revenue $ $ $ $ Adjusted EBITDA (millions) Net income (loss) $ $ $ $ Plus: Income tax expense (benefit) Net interest expense Net other expense - Depreciation expense Amortizati
Slide 30: Operating free cash flow definition
ACI is also presenting operating free cash flow, which is defined as net cash provided by operating activities, plus payments associated with the cash settlement of acquisition related options and significant acquired opening balance sheet liabilities, plus net after-tax payments associated with emp
Slide 31: Backlog estimates definition
ACI also includes backlog estimates, which include 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 the corresponding backlog
Slide 32: 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, increased competition, the performance of our strategic product, B