Fidelity National Information Services, Inc. · NYSE:FIS
Fidelity National Information Services — Q4 2013 Earnings Presentation
24 slides from Fidelity National Information Services's earnings presentation, Feb 4, 2014
Slide 1: 2013 Supplemental Earnings Materials
2013 SUPPLEMENTAL EARNINGS MATERIALS February 4, 2014 ©2013 FIS and/or its subsidiaries. All Rights Reserved.
Slide 2: Agenda
Agenda TOPIC SPEAKER Frank Martire, 2013 Highlights Chairman and CEO Gary Norcross, Operations Review President and Chief Operating Officer Fourth Quarter and Full Woody Woodall, Year Financial Review Chief Financial Officer 2
Slide 3: Forward-looking Statements
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 future strategies o
Slide 4: 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 5: 2013 Highlights
2013 HIGHLIGHTS Frank Martire Chairman and CEO
Slide 6: Full Year 2013 Highlights
Full Year 2013 Highlights Consistent Execution Against Targets • $6.1 BILLION revenue, up 5% 3 Years of ~ 5% Organic Growth • $2.83 adjusted EPS, up 13% 0 • $1.2 BILLION adjusted operating cash flow Revenue • $732 MILLION returned to shareholders 2010 2011 2012 2013 • HIGH visibility into future gro
Slide 7: Operations Review
OPERATIONS REVIEW Gary Norcross President and Chief Operating Officer
Slide 8: Operational Highlights
Operational Highlights •GLOBAL market trends •INVESTING in growth markets • Delivering INNOVATION • Driving GROWTH 8
Slide 9: Key Takeaways
Key Takeaways Driving performance Focused on revenue growth Investing in innovation Foundation for superior performance 9
Slide 10: Financial Summary
FINANCIAL SUMMARY Woody Woodall Chief Financial Officer
Slide 11: Consolidated Results
Consolidated Results | ($ Millions, except per share data) METRICS 4th QUARTER 2013 Revenue $ 1,579 $ 6,071 Growth 5% 5% Organic growth 5% 5% Adjusted EBITDA $ 487 $ 1,835 Growth 4% 5% Adjusted EBITDA Margin 30.8% 30.2% Adjusted Net Earnings $ 222 $ 831 Growth 10% 12% Adjusted EPS $ 0.76 $ 2.83 Grow
Slide 12: Financial Solutions
Financial Solutions | ($ Millions) METRICS 4th QUARTER 2013 Revenue $ 604 $ 2,344 Growth 4% 4% Organic growth 4% 3% EBITDA $ 240 $ 938 Growth 1% 6% EBITDA Margin 39.7% 40.0% Refer to www.investor.fisglobal.com for reconciliation of GAAP to non-GAAP items. See appendix for description of non-GAAP fin
Slide 13: Payment Solutions
Payment Solutions | ($ Millions) METRICS 4th QUARTER 2013 Revenue $ 618 $ 2,455 Growth 3% 3% Growth, as adjusted (1) 4% 4% EBITDA $ 262 $ 1,038 Growth 7% 7% EBITDA Margin 42.4% 42.3% (1) Excludes revenue from check-related businesses that decreased $5 million to $110 million in the current year quar
Slide 14: International Solutions
International Solutions | ($ Millions) METRICS 4th QUARTER 2013 Revenue $ 357 $ 1,274 Growth 11% 8% Organic growth 13% 11% EBITDA $ 99 $ 304 Growth 11% 11% EBITDA Margin 27.7% 23.9% Refer to www.investor.fisglobal.com for reconciliation of GAAP to non-GAAP items. See appendix for description of non-
Slide 15: Consolidated Results – Earnings Per Share
Consolidated Results – Earnings Per Share 4th Full Quarter Year GAAP net earnings per share from continuing operations $ 0.26 $ 1.67 Adjustments: Acquisition-related amortization 0.13 0.53 Capco adjustment 0.35 0.48 Debt refinancing costs - 0.14 Gain on previously held minority interest in mFoundry
Slide 16: Free Cash Flow
Free Cash Flow | ($ Millions) 4th Full Quarter Year Cash Flow from Operations $ 384 $ 1,060 Bond Premium Payment - 52 Capco Contingent Purchase Price and Executive Severance 49 49 Settlement Activity (2) 2 Adjusted Cash Flow from Operations $ 431 $ 1,162 Capital Expenditures (98) (336) Free Cash Flo
Slide 17: Executing Capital Allocation Strategy
Executing Capital Allocation Strategy • Maintaining a strong balance sheet – $4.5 billion debt outstanding as of December 31 – 2.4 times debt-to-EBITDA – Investment grade credit ratings including recent upgrade by S&P • Returning excess cash to shareholders – $256 million in dividends in 2013, inclu
Slide 18: 2014 Financial Outlook
FINANCIAL OVERVIEW 2014 Financial Outlook METRIC RANGE Organic revenue growth 4.5% to 6.5% Earnings per share, as adjusted $3.05 to $3.16 Growth + 8% to 12% ~ adjusted net Free cash flow conversion earnings 18
Slide 19: Focused on Value Creation
Focused on Value Creation STRONG HIGH RETURNING MARKET RECURRING CONSISTENT EPS CASH TO LEADERSHIP REVENUE GROWTH SHAREHOLDERS 19 09 10 11 12 13 09 10 11 12 13 09 10 11 12 13 Excludes 2010 leveraged recapitalization. 19
Slide 20: Appendix
APPENDIX
Slide 21: Foreign Currency
Foreign Currency International Solutions Group Costs Revenue Composition (Q4-13) Indian Other 6% Rupee 5% Australian • Majority of costs within International Dollar 5% Solutions Group are denominated in local currencies, reducing P&L impact Brazil Real 29% • Costs related to captive operation in Ind
Slide 22: Debt Summary
Debt Summary | ($ Millions) Dec 31, Dec 31, Rate 2012 2013 Revolver L+150 bps $ 126 $ 29 Undrawn revolver capacity 25 bps 1,024 1,971 Term Loan (2014 Maturity) L+225 bps 250 - Term Loan (2017 Maturity) L+150 bps 2,021 1,963 2017 Notes 7.625% 750 - 2018 Notes 2.000% - 250 2020 Notes 7.875% 500 500 20
Slide 23: 2014 Financial Outlook
2014 Financial Outlook 2014 ASSUMPTIONS ESTIMATED Effective tax rate 33 – 34% Minority Interest $25M - $30M Capital Expenditures ~5.5 - 6.0% of revenue 23
Slide 24: Non-GAAP Financial Measures
Non-GAAP Financial Measures Organic revenue includes reported revenue plus pre-acquisition revenue for companies acquired during the applicable reporting periods. Organic revenue excludes the impact of foreign currency fluctuation in 2013. EBITDA is earnings from continuing operations before interes
Fidelity National Information Services — Q4 2013 Earnings Presentation on 6ix