Fidelity National Information Services, Inc. · NYSE:FIS
Fidelity National Information Services — Investor Day (2013)
80 slides from Fidelity National Information Services's investor day presentation, 2013
Slide 1: The Future of Financial Services
THE FUTURE OF FINANCIAL SERVICES
Slide 2: Safe Harbor Provision
SAFE HARBOR PROVISION Our discussions today, including this presentation and any comments made by management, contain forward-looking statements within the meaning of the U.S. federal security laws. Any statements that refer to future events or circumstances, including our future strategies or resul
Slide 3: Use of Non-GAAP Measures
USE OF NON-GAAP MEASURES Generally Accepted Accounting Principles (GAAP) is the term used to refer to the standard framework of guidelines for financial accounting. GAAP includes the standards, conventions, and rules accountants follow in recording and summarizing transactions and in the preparation
Slide 4: 2013 Investor Day Agenda and Presenters
Strategic Strategic Global Shareholder Q&A Overview Performance Trends Value Frank Martire Gary Norcross Rob Heyvaert Mike Hayford Executive Panel Chairman and CEO President and COO FIS CEVP & Capco Chief Financial CEO Officer 2013 INVESTOR DAY 4
Slide 5: Strategic Overview
STRATEGIC OVERVIEW Frank Martire Chairman & CEO
Slide 6: Agenda: Strategic Overview - FIS: Leading the Market
AGENDA: STRATEGIC OVERVIEW FIS: Leading the Market Executing Our Strategy Driving Shareholder Return 2013 INVESTOR DAY 6
Slide 7: FIS Today
STRATEGIC OVERVIEW FIS: LEADING THE MARKET EXECUTING OUR STRATEGY DRIVING SHAREHOLDER RETURN FIS TODAY Revenue $5.8B EBITDA $1.7B Operating Cash Flow $1.2B Clients 14,000+ Countries 100+ Employees 35,000+ MARKET LEADERSHIP Refer to www.investor.fisglobal.com for reconciliation of GAAP to non-GAAP it
Slide 8: FIS: A Profile of Leadership
STRATEGIC OVERVIEW FIS: LEADING THE MARKET EXECUTING OUR STRATEGY DRIVING SHAREHOLDER RETURN FIS: A PROFILE OF LEADERSHIP STRONG HIGH CONSISTENT EPS STRONG RETURNING MARKET RECURRING GROWTH CASH GENERATION CASH TO LEADERSHIP REVENUE SHAREHOLDERS 8 08 09 10 11 12 08 09 10 11 12 08 09 10 11 12 08 09 1
Slide 9: Agenda: Executing Our Strategy
AGENDA: STRATEGIC OVERVIEW Executing Our Strategy 2013 INVESTOR DAY 9
Slide 10: Continued Strategic Focus on Optimization
STRATEGIC OVERVIEW FIS: LEADING THE MARKET EXECUTING OUR STRATEGY DRIVING SHAREHOLDER RETURN CONTINUED STRATEGIC FOCUS ON OPTIMIZATION 2012 INVESTOR DAY 10
Slide 11: Executing Consistent Strategy
STRATEGIC OVERVIEW FIS: LEADING THE MARKET EXECUTING OUR STRATEGY DRIVING SHAREHOLDER RETURN EXECUTING CONSISTENT STRATEGY 1. Expand client relationships 2. Buy, build or partner to add solutions to cross sell 3. Leading market through transformation 4. Continuous improvement to drive margin expansi
Slide 12: Five Years of Strong Performance and Consistent Execution
STRATEGIC OVERVIEW FIS: LEADING THE MARKET EXECUTING OUR STRATEGY DRIVING SHAREHOLDER RETURN FIVE YEARS OF STRONG PERFORMANCE AND CONSISTENT EXECUTION ($B except per share data) Revenue EBITDA EPS $5.8 $2.50 $1.7 14% 15% CAGR CAGR Margin 21% 30.1% CAGR +550bps $1.50 $3.4 $0.8 Margin 24.6% 2008 2012
Slide 13: Continuing to Deliver on Our Commitments
STRATEGIC OVERVIEW FIS: LEADING THE MARKET EXECUTING OUR STRATEGY DRIVING SHAREHOLDER RETURN CONTINUING TO DELIVER ON OUR COMMITMENTS FEB 2012 2012 GROWTH METRIC GUIDANCE RESULTS Revenue (Organic) 3% to 5% EBITDA 5% to 7% Margin Expansion 40 to 80 bps EPS 10% to 15% 13
Slide 14: Focused on Driving Sustainable Value
STRATEGIC OVERVIEW FIS: LEADING THE MARKET EXECUTING OUR STRATEGY DRIVING SHAREHOLDER RETURN FOCUSED ON DRIVING SUSTAINABLE VALUE Expanding Client Investing Developing Relationships in Innovation Tomorrow’s Leaders 14
Slide 15: Well Positioned to Achieve Mid-Term Financial Targets
STRATEGIC OVERVIEW FIS: LEADING THE MARKET EXECUTING OUR STRATEGY DRIVING SHAREHOLDER RETURN WELL POSITIONED TO ACHIEVE MID-TERM FINANCIAL TARGETS METRIC 2012 to 2015 Organic Revenue (CAGR) +4% to 7% Adjusted EBITDA margin +30 to 50 bps per year Adjusted EPS (CAGR) +12% to 15% Operating cash flow ~
Slide 16: Agenda: Driving Shareholder Return
AGENDA: STRATEGIC OVERVIEW Driving Shareholder Return 2013 INVESTOR DAY 16
Slide 17: Delivering Strong Returns
STRATEGIC OVERVIEW FIS: LEADING THE MARKET EXECUTING OUR STRATEGY DRIVING SHAREHOLDER RETURN DELIVERING STRONG RETURNS Trailing 5-Year EPS Growth Plus Dividend Yield 18% 14% 12% 5% 3% TSS S&P 500 JKHY FISV FIS Reflects historical 5-year EPS CAGR as of 12/31/2012 plus current dividend yield. 17
Slide 18: Compelling Value Proposition
STRATEGIC OVERVIEW FIS: LEADING THE MARKET EXECUTING OUR STRATEGY DRIVING SHAREHOLDER RETURN COMPELLING VALUE PROPOSITION Price-to-Earnings 22.3 18.1 15.7 15.0 14.6 JKHY TSS FISV FIS S&P 500 Reflects LTM EPS as of 12/31/2012 and closing prices as of 2/6/2013. 18
Slide 19: Key Messages Today
STRATEGIC OVERVIEW FIS: LEADING THE MARKET EXECUTING OUR STRATEGY DRIVING SHAREHOLDER RETURN KEY MESSAGES TODAY Strong Market Momentum • Expanding in all markets, strong fundamentals Exciting Opportunities in High-growth Markets and Transformational Initiatives Consistent Strategy, Focused on Optimi
Slide 20: Strategic Performance
STRATEGIC PERFORMANCE Gary Norcross President & COO
Slide 21: Agenda: Strategic Performance
AGENDA: STRATEGIC PERFORMANCE Global Position Global Trends Global Execution 2013 INVESTOR DAY 21
Slide 22: Unmatched Global Reach and Distribution
STRATEGIC PERFORMANCE GLOBAL POSITION GLOBAL TRENDS GLOBAL EXECUTION UNMATCHED GLOBAL REACH AND DISTRIBUTION 100+ 14,000+ 800+ $5.8B SALES COUNTRIES CLIENTS REVENUES PROFESSIONALS NORTH AMERICA EUROPE 15,000 employees 2,000 employees ASIA PACIFIC LATIN AMERICA 8,000 employees 10,000 employees 35,000
Slide 23: Unmatched Global Processing Scale
STRATEGIC PERFORMANCE GLOBAL POSITION GLOBAL TRENDS GLOBAL EXECUTION UNMATCHED GLOBAL PROCESSING SCALE 27B $5.5T 750M MONEY # TRANSACTIONS END CONSUMERS MOVEMENT Financial Services Worldwide 23
Slide 24: Broadest Market Coverage
STRATEGIC PERFORMANCE GLOBAL POSITION GLOBAL TRENDS GLOBAL EXECUTION BROADEST MARKET COVERAGE Non-FI Leverages portfolio and scale 12% 39% N.A. Community (<$10B) Strong market position International Growing market position 20% 29% N.A. Large FI (>$10B) Leading market position 24
Slide 25: Comprehensive Solutions Across All Market Segments
STRATEGIC PERFORMANCE GLOBAL POSITION GLOBAL TRENDS GLOBAL EXECUTION COMPREHENSIVE SOLUTIONS ACROSS ALL MARKET SEGMENTS <$10B NORTH AMERICA >$10B NORTH AMERICA INTERNATIONAL • Large number of institutions • ~100 institutions • In-house developed Market Attributes • Single-source buyers • Sophisticat
Slide 26: Comprehensive and Transformational Capabilities
STRATEGIC PERFORMANCE GLOBAL POSITION GLOBAL TRENDS GLOBAL EXECUTION COMPREHENSIVE AND TRANSFORMATIONAL CAPABILITIES High INSTITUTION COMPLEXITY (ASSET/GEOGRAPHY) Low Monoline SOLUTION COMPLEXITY Transformational (INTEGRATION/IMPACT) 26
Slide 27: Recognized for Capabilities and Execution
STRATEGIC PERFORMANCE GLOBAL POSITION GLOBAL TRENDS GLOBAL EXECUTION RECOGNIZED FOR CAPABILITIES AND EXECUTION “BPO Innovator of the Year” “Most Significant Contributor "It is impressive to see a technology solutions provider such to the BPO Industry” as FIS continue to grow its revenues in one of t
Slide 28: Unmatched Global Position
STRATEGIC PERFORMANCE GLOBAL POSITION GLOBAL TRENDS GLOBAL EXECUTION POSITIONED TO CAPITALIZE ON THE MARKET OPPORTUNITY AND GROW • 300+ technology solutions • Serving all sizes of • Strong transformational financial institution capabilities • 35,000 employees • Professional services across the globe
Slide 29: Global Trends
GLOBAL TRENDS Rob Heyvaert FIS CEVP & Capco CEO
Slide 30: The Market Dynamic Is Changing
STRATEGIC PERFORMANCE GLOBAL POSITION GLOBAL TRENDS GLOBAL EXECUTION THE MARKET DYNAMIC IS CHANGING • Intense cost pressure • “Electronification” of society • Surplus capacity • Loosening of networks • New entrants/business models • Trust based on data, • Supply chain disintegration not relationship
Slide 31: The Market Dynamic Provides Opportunity for Financial Services
STRATEGIC PERFORMANCE GLOBAL POSITION GLOBAL TRENDS GLOBAL EXECUTION THE MARKET DYNAMIC PROVIDES OPPORTUNITY FOR FINANCIAL SERVICES Market liquidity Access Bank to the transparency unbanked and security OPPORTUNITY Wealth creation in emerging Mining markets “Big Data” Reduced Banking cost advantage
Slide 32: These Needs Are Driving Transformation Over the Next Five Years
STRATEGIC PERFORMANCE GLOBAL POSITION GLOBAL TRENDS GLOBAL EXECUTION THESE NEEDS ARE DRIVING TRANSFORMATION OVER THE NEXT FIVE YEARS Global Financial Services need to innovate and reduce cost by $800B* to return to a sustainable 15% ROE Increase specialization & innovation Required Actions Increase
Slide 33: These Needs Are Driving Transformation Over the Next Five Years
STRATEGIC PERFORMANCE GLOBAL POSITION GLOBAL TRENDS GLOBAL EXECUTION THESE NEEDS ARE DRIVING TRANSFORMATION OVER THE NEXT FIVE YEARS Today 3-7 years 7 years + Threat of disintermediation as the way Customer consumers buy Social and relationship banking services technological drivers further fundamen
Slide 34: FIS Has the Capabilities
STRATEGIC PERFORMANCE GLOBAL POSITION GLOBAL TRENDS GLOBAL EXECUTION FIS HAS THE CAPABILITIES 1. Breadth of Solutions X 2. Global Scale X 3. Expert Innovation X 34
Slide 35: Global Execution
GLOBAL EXECUTION Gary Norcross President & COO
Slide 36: There Are Four Key Growth Drivers
GLOBAL EXECUTION OUTSOURCING DEMAND EXPAND SHARE INNOVATION OPTIMIZE PERFORMANCE THERE ARE FOUR KEY GROWTH DRIVERS 1. Capitalize on the Demand for Outsourcing 2. Expand Wallet Share of Existing Customers 3. Develop Innovative New Products 4. Optimize Our Operations 36
Slide 37: Trends in Global IT Shift Spend to Third Party Partners
GLOBAL EXECUTION OUTSOURCING DEMAND EXPAND SHARE INNOVATION OPTIMIZE PERFORMANCE TRENDS IN GLOBAL IT SHIFT SPEND TO THIRD PARTY PARTNERS SPEND IS SHIFTING TO EXTERNAL PROVIDER “The allocation to internal +18% spending is on a slow and steady decline as banks push resources towards external software
Slide 38: Third-Party Solutions: Demand Growing Across Market Segments
GLOBAL EXECUTION OUTSOURCING DEMAND EXPAND SHARE INNOVATION OPTIMIZE PERFORMANCE DEMAND GROWING ACROSS MARKET SEGMENTS MARKET SEGMENTS Small/Medium Large International Institutions Institutions Institutions (<$10B NA) (>$10B NA) Transformative Services CLIENT BUYING CRITERIA THIRD-PARTY SOLUTIONS So
Slide 39: Further Penetrate Large FI Through Extended Services
GLOBAL EXECUTION OUTSOURCING DEMAND EXPAND SHARE INNOVATION OPTIMIZE PERFORMANCE Case Study: FURTHER PENETRATE LARGE FI THROUGH EXTENDED SERVICES Client Need: • Reduce costs Results: • Improve customer experience • 50% increase in revenue to FIS • Substantial cost savings Extended FIS Services: to c
Slide 40: Transformational Change-the-Bank Initiative
GLOBAL EXECUTION OUTSOURCING DEMAND EXPAND SHARE INNOVATION OPTIMIZE PERFORMANCE Case Study: TRANSFORMATIONAL “CHANGE-THE-BANK” INITIATIVE FORMING THE FUTURE OF FINANCE THROUGH Global Financial Institution changeSourcing Client Need: Results: Enhance delivery execution, drive cost Strategically tran
Slide 41: Fundamental Business Provides a Platform for Growth
GLOBAL EXECUTION OUTSOURCING DEMAND EXPAND SHARE INNOVATION OPTIMIZE PERFORMANCE FUNDAMENTAL BUSINESS PROVIDES A PLATFORM FOR GROWTH 1. Longstanding client relationships 2. Steady recurring revenue 3. Leveragable intellectual property 4. Scalable distribution 41
Slide 42: Strong Revenue Growth in Global Markets
GLOBAL EXECUTION OUTSOURCING DEMAND EXPAND SHARE INNOVATION OPTIMIZE PERFORMANCE WE ARE SEEING STRONG REVENUE GROWTH IN GLOBAL MARKETS EMEA Asia Pacific LATAM • Core Banking • Core Banking • Core Banking • Payments • Payments • Payments • Services • Services • Services • Consulting 24% 14% CAGR 16%
Slide 43: Proven and Effective Global Distribution Channel
GLOBAL EXECUTION OUTSOURCING DEMAND EXPAND SHARE INNOVATION OPTIMIZE PERFORMANCE PROVEN AND EFFECTIVE GLOBAL DISTRIBUTION CHANNEL Number of Deals Deals > $25M Global New TCV 2010 2012 2010 2012 2010 2012 43
Slide 44: Expanding Current Client Relationships
GLOBAL EXECUTION OUTSOURCING DEMAND EXPAND SHARE INNOVATION OPTIMIZE PERFORMANCE EXPANDING CURRENT CLIENT RELATIONSHIPS REVENUE GROWTH BY TOP 25 CLIENTS: 2012 VS 2010 704% 23% 308% Growth 76% 54% 45% 30% 22% 19% 17% 15% 18 of our top 25 global clients 14% 11% increased spend with FIS by 5% 11% or mo
Slide 45: Our Investments Align with Market Opportunity
GLOBAL EXECUTION OUTSOURCING DEMAND EXPAND SHARE INNOVATION OPTIMIZE PERFORMANCE OUR INVESTMENTS ALIGN WITH MARKET OPPORTUNITY Mature • Service Innovation ESTABLISHED • Integrated Cores SOLUTIONS Traditional R&D • Traditional Payments Product Maturity EMERGING • Next Generation Core ~$900M FIS Reven
Slide 46: Early Stage Solution: PayNet
GLOBAL EXECUTION OUTSOURCING DEMAND EXPAND SHARE INNOVATION OPTIMIZE PERFORMANCE Case Study: EARLY STAGE SOLUTION: ™ PATENT PENDING Consumers Businesses OPEN Real-time GLOBAL Originators Receivers Digital Wallet eCommerce/POS Key Client Requirements SIMPLIFY X LOWER COST X MANAGE RISK X 46
Slide 47: PayNet Client Benefits and Participation
GLOBAL EXECUTION OUTSOURCING DEMAND EXPAND SHARE INNOVATION OPTIMIZE PERFORMANCE Case Study: EARLY STAGE SOLUTION: ™ PATENT PENDING Payment Method Current PayNet ACH Low Cost - Slow Low Cost - Fast WIRE Expensive - Fast Low Cost - Fast CHECK Expensive - Slow Low Cost - Fast 390K 170 550K TRANSACTION
Slide 48: Early Stage Solution: PeoplePay
GLOBAL EXECUTION OUTSOURCING DEMAND EXPAND SHARE INNOVATION OPTIMIZE PERFORMANCE Case Study: EARLY STAGE SOLUTION: PeoplePay™ FIS Real-Time Money Movement Leverages the FIS PayNet™ payment network and core system integration for You’ve Got real-time money movement Money Sending Money Real-Time Me-To
Slide 49: Early Stage Solution: Mobile
GLOBAL EXECUTION OUTSOURCING DEMAND EXPAND SHARE INNOVATION OPTIMIZE PERFORMANCE Case Study: EARLY STAGE SOLUTION: MOBILE The Market for Mobile Users is Growing FIS User Adoption Accelerating U.S. Mobile Banking Users Mobile End Users (millions) 100 Includes more than 1/3 of top 50 banks 90 30% 3M 8
Slide 50: Our Innovation Continues to Make an Impact
GLOBAL EXECUTION OUTSOURCING DEMAND EXPAND SHARE INNOVATION OPTIMIZE PERFORMANCE OUR INNOVATION CONTINUES TO MAKE AN IMPACT FIS Innovation Revenue ($M) 15% of company revenue $1,000 CAGR growing at > 10% 2X overall growth rate $800 $600 • Continue to focus on development, minority investment and acq
Slide 51: Optimize Our Operations: Strategic Evolution
GLOBAL EXECUTION OUTSOURCING DEMAND EXPAND SHARE INNOVATION OPTIMIZE PERFORMANCE OPTIMIZE OUR OPERATIONS: FOCUS ON ORGANIC GROWTH & MARGIN EXPANSION STRATEGIC EVOLUTION 2003 – 2009 2009 – 2011 2012 – 2015 OPTIMIZE PERFORMANCE Integrate & Build Acquire Global Scale 51
Slide 52: Optimize Our Operations: Organic Growth and Margin Expansion
GLOBAL EXECUTION OUTSOURCING DEMAND EXPAND SHARE INNOVATION OPTIMIZE PERFORMANCE OPTIMIZE OUR OPERATIONS: FOCUS ON ORGANIC GROWTH & MARGIN EXPANSION STRATEGIC EVOLUTION 2012 – 2015 PRODUCT DATA RATIONALIZATION CENTER CONSOLIDATION R&D SPEND ORGANIC REDEPLOYMENT GROWTH NEW SALES IN CLIENT BASE LIFT O
Slide 53: The Formula for Success
GLOBAL EXECUTION OUTSOURCING DEMAND EXPAND SHARE INNOVATION OPTIMIZE PERFORMANCE THE FORMULA FOR SUCCESS STRONG MARKET POSITION + FAVORABLE MARKET DYNAMICS INDUSTRY + FOCUS ON INNOVATION LEADING PERFORMANCE + PROVEN EXECUTION 2013 INVESTOR DAY 53
Slide 54: Financial Overview
FINANCIAL OVERVIEW Mike Hayford CFO
Slide 55: Agenda: Compelling Business Model
AGENDA: STRATEGIC OVERVIEW Compelling Business Model Financial Targets Capital Allocation Framework 2013 INVESTOR DAY 55
Slide 56: Business Model Is Compelling
FINANCIAL OVERVIEW COMPELLING BUSINESS MODEL FINANCIAL TARGETS CAPITAL ALLOCATION FRAMEWORK BUSINESS MODEL IS COMPELLING 1. High recurring, stable revenue 2. Expanding streams margins 4. Strong cash 3. Sustainable, generation consistent EPS growth 56
Slide 57: Long-Term Contracts Provide High Recurring Revenue Streams
FINANCIAL OVERVIEW COMPELLING BUSINESS MODEL FINANCIAL TARGETS CAPITAL ALLOCATION FRAMEWORK LONG-TERM CONTRACTS PROVIDE HIGH RECURRING REVENUE STREAMS High Recurring Revenue Processing and Maintenance $M Software/ Other $4,600 Project Based Services $4,400 Recurring Professional Services Processing
Slide 58: Mission Critical Services Are Resilient and Growing
FINANCIAL OVERVIEW COMPELLING BUSINESS MODEL FINANCIAL TARGETS CAPITAL ALLOCATION FRAMEWORK MISSION CRITICAL SERVICES ARE RESILIENT AND GROWING $M $1,200 18% CAGR $1,000 Capco $800 Professional Services $600 - 75% Recurring - 25% Project Based $400 $200 Software $- 2008 2009 2010 2011 2012 Note: Ref
Slide 59: Strong Track Record of Execution
FINANCIAL OVERVIEW COMPELLING BUSINESS MODEL FINANCIAL TARGETS CAPITAL ALLOCATION FRAMEWORK STRONG TRACK RECORD OF EXECUTION ($ billions, except per share data) Revenue EBITDA EPS 21% 15% CAGR 14% CAGR +550 BPS CAGR $1.7 $2.50 $5.8 30.1% $1.50 $3.4 $0.8 24.6% 2008 2009 2010 2011 2012 2008 2009 2010
Slide 60: Executing the Strategy
FINANCIAL OVERVIEW COMPELLING BUSINESS MODEL FINANCIAL TARGETS CAPITAL ALLOCATION FRAMEWORK EXECUTING THE STRATEGY INVESTOR DAY 2012 DRIVING RESULTS • Organic Growth • Margin Expansion • Double-Digit EPS Growth • Disciplined Capital Allocation 60
Slide 61: Agenda: Financial Targets
AGENDA: STRATEGIC OVERVIEW Financial Targets 2013 INVESTOR DAY 61
Slide 62: 2013 Financial Outlook
FINANCIAL OVERVIEW COMPELLING BUSINESS MODEL FINANCIAL TARGETS CAPITAL ALLOCATION FRAMEWORK 2013 FINANCIAL OUTLOOK 2012 to 2015 2012 METRIC OUTLOOK PERFORMANCE Organic Revenue (CAGR) +4% to 7% Adjusted EBITDA margin +30 to 50 bps per year Adjusted EPS (CAGR) +12% to 15% Operating cash flow ~ $
Slide 63: 2013 Financial Outlook
FINANCIAL OVERVIEW COMPELLING BUSINESS MODEL FINANCIAL TARGETS CAPITAL ALLOCATION FRAMEWORK 2013 FINANCIAL OUTLOOK METRIC RANGE Reported revenue growth 4% to 6% Organic revenue growth 3% to 5% Margin expansion 30 bps to 50 bps Earnings per share, as adjusted $2.77 to $2.87 Growth +11% to 15% ~ adjus
Slide 64: Agenda: Capital Allocation Framework
AGENDA: STRATEGIC OVERVIEW Capital Allocation Framework 2013 INVESTOR DAY 64
Slide 65: Significant Cash Generation
FINANCIAL OVERVIEW COMPELLING BUSINESS MODEL FINANCIAL TARGETS CAPITAL ALLOCATION FRAMEWORK SIGNIFICANT CASH GENERATION ($ millions) FREE CASH FLOW $1,000 $750 25% CAGR $500 $250 $- 2008 2009 2010 2011 2012 Data for 2008 and 2009 reflects FIS reported results; Acquisitions included prospectively fro
Slide 66: Capital Allocation Principles
FINANCIAL OVERVIEW COMPELLING BUSINESS MODEL FINANCIAL TARGETS CAPITAL ALLOCATION FRAMEWORK CAPITAL ALLOCATION PRINCIPLES • Preserve strong balance sheet, liquidity and Maintain Strong 1. investment grade credit ratings Balance Sheet • Maintain flexibility to invest in growth • New product developme
Slide 67: 1. Maintain a Strong Balance Sheet
FINANCIAL OVERVIEW COMPELLING BUSINESS MODEL FINANCIAL TARGETS CAPITAL ALLOCATION FRAMEWORK 1. MAINTAIN A STRONG BALANCE SHEET Improved Leverage Profile $B Balance Sheet Strengths (Debt-to-EBITDA) $5.5 • Mix shift from floating rate term loans to fixed rate bonds 3.2x • No near term refinancing requ
Slide 68: 2. Investing for Growth
FINANCIAL OVERVIEW COMPELLING BUSINESS MODEL FINANCIAL TARGETS CAPITAL ALLOCATION FRAMEWORK 2. INVESTING FOR GROWTH Deploying capital more efficiently $400 $300 $200 7% 6% 6% $100 5% 5% $- 2008 2009 2010 2011 2012 Capital Expenditures Percent of Revenue 68
Slide 69: 2. Investing for Growth: M&A
FINANCIAL OVERVIEW COMPELLING BUSINESS MODEL FINANCIAL TARGETS CAPITAL ALLOCATION FRAMEWORK 2. INVESTING FOR GROWTH M&A focused on product enhancement and innovation RECENT TRANSACTIONS M&A STRATEGY • Enhance organic growth and competitive Year # of Deals Total Cost differentiation 2010 2 $400M • Ex
Slide 70: 3. Return Capital to Shareholders: Dividends
FINANCIAL OVERVIEW COMPELLING BUSINESS MODEL FINANCIAL TARGETS CAPITAL ALLOCATION FRAMEWORK 3. RETURN CAPITAL TO SHAREHOLDERS Dividend policy reflects ongoing confidence Enhancing Shareholder Return $300 • Fourfold increase in dividend in February 2012 $200 Dividends ($M) • Increased 10% to $0.88 an
Slide 71: 3. Return Capital to Shareholders: Share Repurchases
FINANCIAL OVERVIEW COMPELLING BUSINESS MODEL FINANCIAL TARGETS CAPITAL ALLOCATION FRAMEWORK 3. RETURN CAPITAL TO SHAREHOLDERS Focused on reducing shares outstanding 352 307 298 31 30 • ~$250 million annual baseline repurchases (Millions) • Incremental buybacks from option proceeds 16 • Additional bu
Slide 72: Value Proposition Is Compelling
FINANCIAL OVERVIEW COMPELLING BUSINESS MODEL FINANCIAL TARGETS CAPITAL ALLOCATION FRAMEWORK VALUE PROPOSITION IS COMPELLING Trailing 5-Year EPS Growth P/E Multiple Has Room to Expand Plus Dividend Yield 22.3 18% 18.1 14% 15.7 15.0 14.6 12% 5% 3% TSS S&P 500 JKHY FISV FIS JKHY TSS FISV FIS S&P 500 Re
Slide 73: FIS: A Profile of Leadership
FINANCIAL OVERVIEW COMPELLING BUSINESS MODEL FINANCIAL TARGETS CAPITAL ALLOCATION FRAMEWORK FIS: A PROFILE OF LEADERSHIP STRONG HIGH CONSISTENT EPS STRONG RETURNING MARKET RECURRING GROWTH CASH GENERATION CASH TO LEADERSHIP REVENUE SHAREHOLDERS 73 08 09 10 11 12 08 09 10 11 12 08 09 10 11 12 08 09 1
Slide 74: Q&A
Q&A 2013 INVESTOR DAY 74
Slide 75: Closing Remarks
CLOSING REMARKS Frank Martire Chairman & CEO
Slide 76: Focused on Shareholder Return
FOCUSED ON SHAREHOLDER RETURN ORGANIC REVENUE GROWTH + MARGIN EXPANSION SUPERIOR + + DIVIDEND SHAREHOLDER RETURNS DISCIPLINED CAPITAL ALLOCATION = DOUBLE-DIGIT EPS GROWTH 2013 INVESTOR DAY 76
Slide 77: Driving the Future of Financial Services
Driving the Future of Financial Services 2013 INVESTOR DAY 77
Slide 78: Appendix
APPENDIX 2013 INVESTOR DAY
Slide 79: Assumptions
ASSUMPTIONS 2013 Assumptions Estimated Effective tax rate 32% to 33% Average diluted shares ~295M Minority Interest $20M to $25M Capital Expenditures ~5.5% of revenue 79
Slide 80: Non-GAAP Financial Measures
NON-GAAP FINANCIAL MEASURES EBITDA is earnings from continuing operations before interest, taxes and depreciation and amortization. Adjusted EBITDA (2012 full year comparative data) excludes charges for payments and accelerated vesting of stock option and restricted stock grants associated with the
Fidelity National Information Services — Investor Day (2013) on 6ix