Fidelity National Information Services, Inc. · NYSE:FIS
Fidelity National Information Services — Raymond James 41st Annual Institutional Investors Conference (March 2020)
23 slides from Fidelity National Information Services's conference presentation, Mar 2, 2020
Slide 1: Raymond James 41st Annual Institutional Investors Conference
RAYMOND JAMES 41ST ANNUAL INSTITUTIONAL INVESTORS CONFERENCE Woody Woodall, CFO March 2, 2020
Slide 2: Disclosures
DISCLOSURES Forward-looking Statements Our discussions today, including this presentation and any comments made by management, contain “forward-looking statements” within the meaning of the U.S. federal securities laws. Any statements that refer to future events or circumstances, including our futur
Slide 3: FIS: Advancing the Way the World Pays, Banks and Invests
FIS ADVANCING THE WAY THE WORLD PAYS, BANKS AND INVESTS 1 • #1 Global Fintech Provider • Leader in Global eCommerce and Pay Integrated Payments • Pioneer in Enterprise Bank Software and Digital Banking • End-to-End Financial Capabilities in Capital Markets Invest • Pivot to Growth strategy accelerat
Slide 4: Creating Value Through Accelerated Growth
CREATING VALUE THROUGH ACCELERATED GROWTH • Leader in secular high-growth eCommerce and Integrated Payments • Exposure to secular high growth markets and focused on Merchant increasing market share • Best-in-class portfolio of next-gen solutions that serve small to large complex banks Accelerating •
Slide 5: Powerful Client Value Proposition
POWERFUL CLIENT VALUE PROPOSITION CREATING SEAMLESS END-TO-END EXPERIENCES ACROSS THE GLOBAL FINANCIAL ECOSYSTEM ACCESS TO DATA AND WORLD-CLASS INNOVATION INSIGHTS SCALE Client Create innovative, secure, Embrace our unique Leverage our global reach outcomes enterprise-grade solutions approach to sol
Slide 6: Compelling Financial Profile
COMPELLING FINANCIAL PROFILE High-Quality • Resilient business with high visibility and predictability Recurring • Diverse customer base with long-term contracts Revenue • Multiple secular opportunities to accelerate organic growth • One-to-many model and superior cost structure Expanding • Acquisit
Slide 7: Superior Financial Performance
SUPERIOR FINANCIAL PERFORMANCE REVENUE1 ADJUSTED EBITDA ($ Millions) ($ Millions) $14,000 10% $7,000 0.7 9% 0.65 $12,000 $6,000 8% 0.6 $10,333 $10,000 7% $5,000 0.55 $8,668 $8,423 6% - 7% 6% $4,204 0.5 $8,000 $4,000 6% 5% 0.45 $3,133 $2,984 $6,000 4% $3,000 ~44% 0.4 41% $4,000 3% $2,000 37% 0.35 3%
Slide 8: Integration Ahead of Schedule
INTEGRATION AHEAD OF SCHEDULE ($ millions, annual run-rate achievement) Revenue Synergy Update1 Cost Synergy Update1 Increasing Increasing Increasing YE ‘20 Total YE ‘22 $600M Total YE ‘22 Target to $600M Goal to $550M Goal to $675M $465M $400M $465M Achieved in 4Q ‘19 Increasing YE ‘20 Target to $2
Slide 9: Capital Allocation Strategy
CAPITAL ALLOCATION STRATEGY GENERATE HIGH RATE REDUCE MAXIMIZE OF FREE CASH FLOW LEVERAGE SHAREHOLDER CONVERSION RETURNS • Free cash flow of $2.1 billion • Reduced debt by $1.4 billion • Disciplined capital allocation, in 2019 since the close of the including investing in business transaction1 oppor
Slide 10: 2020 Guidance
2020 GUIDANCE $ millions except per share data 1Q 2020 Guidance FY 2020 Guidance Revenue $ 3,180 – $ 3,210 $ 13,550 – $ 13,675 Organic Revenue Growth 5% - 6% 6% - 7% Adjusted EPS $ 1.30 – $ 1.34 $ 6.17 – $ 6.35 Adjusted EPS Growth 12% - 16% 10% - 13% 1Q 2020 Guidance Assumptions FY 2020 Guidance Ass
Slide 11: Compelling Investment Thesis
COMPELLING INVESTMENT THESIS ACCELERATING POWERING POWERFUL COMPELLING GROWTH THE DIGITAL CLIENT VALUE FINANCIAL STRATEGY ECONOMY PROPOSITION PROFILE New wins and Harnessing secular Investing in Durable business revenue synergy growth tailwinds to technology and model created by opportunities furthe
Slide 12: Q&A
Kis Q&A
Slide 13: Appendix
APPENDIX KIS
Slide 14: Forward-Looking Statements
FORWARD-LOOKING STATEMENTS This presentation and today’s webcast contain “forward-looking statements” within the meaning of the U.S. federal securities laws. Statements that are not historical facts, including statements about anticipated financial outcomes, including any earnings guidance of the Co
Slide 15: Forward-Looking Statements
FORWARD-LOOKING STATEMENTS • changes in the growth rates of the markets for our solutions; • failures to adapt our solutions to changes in technology or in the marketplace; • internal or external security breaches of our systems, including those relating to unauthorized access, theft, corruption or
Slide 16: FIS Use of Non-GAAP Financial Information
FIS USE OF NON-GAAP FINANCIAL INFORMATION Generally Accepted Accounting Principles (GAAP) is the term used to refer to the standard framework of guidelines for financial accounting in the United States. GAAP includes the standards, conventions, and rules accountants follow in recording and summarizi
Slide 17: FIS Use of Non-GAAP Financial Information
FIS USE OF NON-GAAP FINANCIAL INFORMATION Adjusted EBITDA is EBITDA, as defined above, excluding certain costs and other transactions which management deems non-operational in nature, the removal of which improves comparability of operating results across reporting periods. This measure is reported
Slide 18: Organic Revenue Growth Calculation
ORGANIC REVENUE GROWTH CALCULATION ($ millions, unaudited) Three months ended December 31, 2019 Capital Merchant Banking Market Solutions Solutions Solutions Consolidated Revenue $ 1,116 $ 1,556 $ 669 $ 3,341 Currency translation adjustment 2 4 1 7 Constant currency (A) $ 1,118 $ 1,561 $ 670 $ 3,348
Slide 19: Organic Revenue Growth Calculation
ORGANIC REVENUE GROWTH CALCULATION ($ millions, unaudited) Year ended December 31, 2019 Capital Merchant Banking Market Corporate Solutions Solutions Solutions and Other Consolidated Revenue $ 2,013 $ 5,873 $ 2,447 $ - $ 10,333 Currency translation adjustment 13 37 20 - 70 Constant currency (A) $ 2,
Slide 20: Reconciliation of GAAP to Non-GAAP
RECONCILIATION OF GAAP TO NON-GAAP ($ millions, unaudited) Three months ended Years ended December 31, December 31, 2019 2018 2019 2018 Net earnings (loss) attributable to FIS common stockholders $ (158) $ 299 $ 298 $ 846 Provision (benefit) for income taxes (19) 85 100 208 Interest expense, net 95
Slide 21: Reconciliation of GAAP to Non-GAAP
RECONCILIATION OF GAAP TO NON-GAAP Three months ended Years ended ($ millions, except per share amounts, unaudited) December 31, December 31, 2019 2018 2019 2018 Earnings (loss) before income taxes and equity method investment earnings (loss) $ (183) $ 400 $ 413 $ 1,104 Provision (benefit) for incom
Slide 22: Reconciliation of GAAP to Non-GAAP
RECONCILIATION OF GAAP TO NON-GAAP ($ millions, unaudited) Three months ended Year ended December 31, 2019 December 31, 2019 Net cash provided by operating activities $ 670 $ 2,410 Non-GAAP adjustments: Acquisition, integration and other payments 96 356 Tax payments on divestitures - 10 Settlement a
Slide 23: Advancing the Way the World Pays, Banks and Invests
eee (— | oS ADVANCING THE WAY THE WORLD PAYS, BANKS AND INVESTS.