ACI Worldwide, Inc. · NASDAQ:ACIW
ACI Worldwide — Shareholder Meeting (June 2008)
21 slides from ACI Worldwide's shareholder meeting presentation, Jun 10, 2008
Slide 1: Annual Shareholders' Meeting
Annual Shareholders’ Meeting June 10, 2008
Slide 2: Welcome
Welcome Harlan Seymour, Chairman
Slide 3: Agenda
Agenda • Introduction • Call to Order • Declaration of Quorum • Introduction of Proposals • Voting on Proposals • Remarks by Phil Heasley, President and CEO • Results of Balloting • Adjournment • General Discussion 3
Slide 4: 2007 Calendar Year Review
2007 Calendar Year Review Phil Heasley, President and CEO 4
Slide 5: 2007 Calendar Year Recap
2007 Calendar Year Recap • Generated strongest sales year in history of ACI; booked ~$430 million of sales – 70% of the sales were new customers/new applications • 42% Add-on business • 28% New customer/new application • OFCF of $52.8 million for the 2007 year versus $39.3 million in calendar 2006,
Slide 6: 2007 Business Acquisitions
2007 Business Acquisitions • Purchased Visual Web Solutions in calendar Q1 2007 – Trade Finance expertise – ~100 engineers in Bangalore, India • Purchased Stratasoft Bhd in calendar Q2 2007 – Affirmation of go-direct strategy in Asia – Expanded our engineering team based in Malaysia 6
Slide 7: 2007 Corporate Matters
2007 Corporate Matters • Completed historic stock options review – ACI spent $8.4 million (net of tax) throughout 2007 on purchasing expiring options and related professional fees • KPMG reduced number of material weaknesses from four to two outstanding items • Moved to a calendar fiscal year 7
Slide 8: ACI Customers by Region, Industry and Solution Set – December 31, 2007
ACI Customers by Region, Industry and Solution Set – December 31, 2007 • ACI customers use an average of 2.7 products. • 17 new customers added in quarter ended December 31, 2007 • 49 new customers added in year ended December 31, 2007 • Total of 821 ACI customers • Total of ~2,200 products contract
Slide 9: 2007 Channel Update
2007 Channel Update • Americas – Progress with AOD in the US – Gaining traction in Latin America – A number of sizable renewals occurred despite overall banking sector market turbulence • EMEA – Another year of strong growth – Significant sales wins in the Middle East – Renewed momentum in France, S
Slide 10: Commentary on 2007 Operations
Commentary on 2007 Operations • Areas of Progress – BASE24-eps deployments – AOD operation improvements – Global resource management (e.g. Romania, India, Malaysia) • Areas with Challenges – Solution deployments vs. product deployments – Implementation margins – Product Life Cycle management 10
Slide 11: Key Subsequent Events
Key Subsequent Events • Signing of the IBM Master Alliance Agreement December 2007 • Sunset of Base24 Classic announced March 2008 • Sales contract completed with first IBM/ACI alliance customer, Sermepa, in Spain • Repurchased $30 million of ACIW common shares in the first quarter of 2008 11
Slide 12: Five Quarter Lookback- Financial Metrics
Five Quarter Lookback- Financial Metrics Q1 Q2 Q3 Q4 Q1 CY07 CY07 CY07 CY07 CY08 Sales 125,480 85,220 91,052 131,539 63,813 Revenue 89,948 98,109 84,872 101,282 92,591 60 Mo. Backlog 1,276,677 1,303,970 1,341,392 1,380,102 1,397,187 Rev-Log 34,447 40,637 34,064 46,702 19,729 OFCF 18,283 11,790 1,610
Slide 13: Deferred Revenue Moving into the Near Term
Deferred Revenue Moving into the Near Term Revenue Total Deferred Revenue (ST) Total Deferred Revenue (LT) 135,000 120,000 105,000 90,000 75,000 60,000 45,000 30,000 15,000 Q1 CY07 Q2 CY07 Q3 CY07 Q4 CY07 Q1 CY08 Q1 CY07 Q2 CY07 Q3 CY07 Q4 CY07 Q1 CY08 Revenue 89,948 98,109 84,872 101,282 92,591 Tot
Slide 14: Sales Outlook for 2008
Sales Outlook for 2008 • IBM sales – Huge potential, particularly replacing in house systems • well in excess of 100 major banks – ACI Base 24-eps in 23 IBM customers today – Geographic expansion • China, Japan, France, Spain, Germany – Joint planning, customer campaigns, etc – Increased bandwidth B
Slide 15: 2008 Outlook
2008 Outlook • IBM Impact to Operations – Product directions – Migration processes and services – Enablement • Implementation and Services Margin Improvement • Investment in technical personnel • Aggression in Product Life Cycle Management • Wholesale Payment Hub Opportunity • Solutions and Integrat
Slide 16: Results of Balloting
Results of Balloting Dennis Byrnes, General Counsel & Corporate Secretary
Slide 17: General Discussion
General Discussion
Slide 18: Non-GAAP Financial Measures
Non-GAAP Financial Measures • This presentation includes operating free cash flow and backlog estimates. ACI is presenting these non-GAAP guidance measures to provide more transparency to its earnings, focusing on operations before selected non-cash items, operating free cash flow and backlog. • ACI
Slide 19: Non-GAAP Financial Measures
Non-GAAP Financial Measures • ACI also includes backlog estimates which are 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
Slide 20: Forward Looking Statements
Forward Looking Statements This presentation contains forward-looking statements based on current expectations that involve a number of risks and uncertainties. Generally, forward-looking statements do not relate strictly to historical or current facts and may include words or phrases such as “belie
Slide 21: Forward Looking Statements
Forward Looking Statements The risks identified in our filings with the Securities and Exchange Commission include: • Risks associated with the restatement of our financial statements; • Risks associated with our performance which could be materially adversely affected by a general economic downturn