Fidelity National Information Services, Inc. · NYSE:FIS
Fidelity National Information Services — Q3 2016 Earnings Presentation
30 slides from Fidelity National Information Services's earnings presentation, Nov 1, 2016
Slide 1: Third Quarter 2016 Earnings Call
Third Quarter 2016 Earnings Call November 1, 2016 ©2016 FIS and/or its subsidiaries. All Rights Reserved.
Slide 2: Agenda
Agenda TOPIC SPEAKER Gary Norcross, Business Summary President and CEO Woody Woodall, Financial Summary Chief Financial Officer 2
Slide 3: 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 futu
Slide 4: Business Summary
Business Summary Gary Norcross President and CEO
Slide 5: Third Quarter Highlights
Third Quarter Highlights • Execution EXCEEDING expectations • ACCELERATING synergy benefits • GENERATING strong cash flow 5
Slide 6: Third Quarter Highlights
Third Quarter Highlights • Integrated Financial Solutions – EMV card production – Strength in debit processing – Mobile banking and fraud growth • Global Financial Solutions – Large client conversion in Europe – Additional de novo bank wins in India – Implemented second customer to the post-trade de
Slide 7: Consistent Execution of Strategy
Consistent Execution of Strategy • FOCUS on integration • Invest for GROWTH • DE-LEVER the balance sheet 7
Slide 8: Financial Summary
FINANCIAL SUMMARY Woody Woodall Chief Financial Officer
Slide 9: Consolidated Non-GAAP Results
Consolidated Non-GAAP Results Third Quarter and Nine Months (YTD) 2016 ($ millions) Q3 METRICS Q3 2016 Y-o-Y vs Q3 2015 Adj. Revenue $ 2,346 3.8% Organic(1) Adj. EBITDA $ 766 7.7%(2) Adj. EBITDA Margin 32.7% 140 bps(2) Adj. EPS $ 1.00 11.1% YTD METRICS YTD 2016 Y-o-Y vs YTD 2015 Adj. Revenue $ 6,972
Slide 10: Integrated Financial Solutions
Integrated Financial Solutions Third Quarter and Nine Months (YTD) 2016 ($ millions) Q3 METRICS Q3 2016 Y-o-Y vs Q3 2015 Revenue $ 1,124 4.1% Organic(1) Adj. EBITDA $ 457 1.0%(2) Adj. EBITDA Margin 40.7% (120) bps(2) YTD METRICS YTD 2016 Y-o-Y vs YTD 2015 Revenue $ 3,407 5.9% Organic(1) Adj. EBITDA
Slide 11: Integrated Financial Solutions
Integrated Financial Solutions Revenue Contribution Revenue Composition – Nine Months ($ millions) ORGANIC Nine ORGANIC RECURRING REVENUE | 87% Q3 GROWTH Months GROWTH PROFESSIONAL SERVICES | 10% Banking and Wealth $ 471 3.9% $ 1,474 6.3% OTHER | 3% Payments 462 5.8% 1,369 6.9% Corporate and Digital
Slide 12: Global Financial Solutions
Global Financial Solutions Third Quarter and Nine Months (YTD) 2016 ($ millions) Q3 METRICS Q3 2016 Y-o-Y vs Q3 2015 Revenue $ 1,068 4.5% Organic(1) Adj. EBITDA $ 343 13.3%(2) Adj. EBITDA Margin 32.1% 290 bps(2) YTD METRICS YTD 2016 Y-o-Y vs YTD 2015 Revenue $ 3,106 3.9% Organic(1) Adj. EBITDA $ 880
Slide 13: Global Financial Solutions
Global Financial Solutions Revenue Contribution Revenue Composition – Nine Months ($ millions) RECURRING REVENUE | 67% ORGANIC Nine ORGANIC Q3 GROWTH Months GROWTH PROFESSIONAL SERVICES | 28% Institutional and $ 502 0.6% $ 1,522 3.7% Wholesale Banking and 427 11.0% 1,165 5.1% Payments OTHER | 5% Con
Slide 14: Corporate and Other
Corporate and Other Third Quarter and Nine Months (YTD) 2016 ($ millions) METRICS Q3 2016 YTD 2016 Adj. Revenue $ 154 $ 459 Adj. EBITDA $ (34) $ (114) Q3 2016 and Nine Months 2016 Adj. EBITDA inclusive of $75M and $228M of Corporate Expense, respectively Revenue Contribution Revenue Composition – Ni
Slide 15: Cash Flow and Capital Allocation Strategy
Cash Flow and Capital Allocation Strategy • Cash flow generation – $426 million Q3 2016 free cash flow and $1.1 billion year-to-date • Maintaining a strong balance sheet – $10.8 billion debt outstanding as of September 30, 2016 – De-lever the balance sheet through debt reduction and EBITDA growth •
Slide 16: Competitive Business Model
Competitive Business Model STRONG cash flow generation MAINTAIN strong balance sheet INVEST in growth 16
Slide 17: Appendix
APPENDIX
Slide 18: Debt Summary
Debt Summary ($ in millions) Sep 30, Dec 31, Rate 2016 2015 (1) Revolver (2021 Maturity) L+125 bps $ 21 $ 1,250 Undrawn revolver capacity 15 bps 2,979 1,750 Term Loan (2017 Maturity) L+125 bps - 1,300 Term Loan (2018 Maturity) L+125 bps 900 1,500 2017 Notes (June) 1.450% 300 300 2018 Notes (April) 2
Slide 19: Global Financial Solutions Revenue by Currency
Global Financial Solutions Revenue by Currency Nine Months (YTD) 2016 GBP STERLING 10% EURO 9% BRAZIL REAL 7% OTHER 16% US DOLLAR 58% 19
Slide 20: 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 21: Forward-Looking Statements
Forward-Looking Statements •the risk that implementation of software (including software updates) for customers or at customer locations may result in the corruption or loss of data or customer information, interruption of business operations, exposure to liability claims or loss of customers; •the
Slide 22: Non-GAAP Financial Information and Reconciliation
Non-GAAP Financial Information and Reconciliation 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 transactio
Slide 23: Definitions of Non-GAAP Financial Measures
Definitions of Non-GAAP Financial Measures Adjusted revenue consists of reported revenue, increased to reverse the purchase accounting deferred revenue adjustment made upon the acquisition of SunGard. The deferred revenue adjustment represents revenue that would have been recognized in the normal co
Slide 24: Definitions of Non-GAAP Financial Measures
Definitions of Non-GAAP Financial Measures Constant currency revenue represents (i) adjusted revenue in respect of the consolidated results and corporate segment and (ii) reported revenue in respect of the IFS and GFS segments, in each case excluding the impact of fluctuations in foreign currency ex
Slide 25: Organic Revenue Growth Calculation
Organic Revenue Growth Calculation Third Quarter 2016 ($ millions) 2016 2015 Adjusted Constant In Year Adjusted Organic Revenue FX Currency Revenue Adjustments Base Growth Integrated Financial Solutions $ 1,124 $1 $ 1,125 $ 944 $ 138 $ 1,082 4.1% Global Financial Solutions 1,068 14 1,082 539 496 1,0
Slide 26: Organic Revenue Growth Calculation
Organic Revenue Growth Calculation Nine Months (YTD) 2016 ($ millions) 2016 2015 Adjusted Constant In Year Adjusted Organic Revenue FX Currency Revenue Adjustments Base Growth Integrated Financial Solutions $ 3,407 $3 $ 3,410 $ 2,803 $ 417 $ 3,220 5.9% Global Financial Solutions 3,106 75 3,181 1,606
Slide 27: Reconciliation of GAAP to Non-GAAP Financial Measures
Reconciliation of GAAP to Non-GAAP Financial Measures ($ in Millions, Except per Share Data, Unaudited) Three Months Ended September 30, 2016 Integrated Global Financial Financial Corporate Solutions Solutions and Other Consolidated Processing and services revenue $ 1,124 $ 1,068 $ 117 $ 2,309 Non-G
Slide 28: Reconciliation of GAAP to Non-GAAP Financial Measures
Reconciliation of GAAP to Non-GAAP Financial Measures ($ in Millions, Except per Share Data, Unaudited) Three months ended Nine months ended September 30, September 30, 2016 2015 2016 2015 Net earnings from continuing operations attributable to FIS $ 185 $ 177 $ 360 $ 533 Provision for income taxes
Slide 29: Reconciliation of GAAP to Non-GAAP Financial Measures
Reconciliation of GAAP to Non-GAAP Financial Measures ($ in Millions, Except per Share Data, Unaudited) Three months ended Nine months ended September 30, September 30, 2016 2015 2016 2015 Earnings from continuing operations before income taxes $ 294 $ 282 $ 573 $ 861 Provision for income taxes 103
Slide 30: Reconciliation of GAAP to Non-GAAP Financial Measures
Reconciliation of GAAP to Non-GAAP Financial Measures ($ in Millions, Except per Share Data, Unaudited) Three months ended Nine months ended September 30, 2016 September 30, 2016 Net cash provided by operating activities $ 522 $ 1,342 Non-GAAP adjustments: Capco acquisition related payments - 20 Acq
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