Fidelity National Information Services, Inc. · NYSE:FIS
Fidelity National Information Services — Investor Day (February 2006)
124 slides from Fidelity National Information Services's investor day presentation, Feb 15, 2006
Slide 1: FIS 2006 Investor Day Welcome
FIS 2006 Investor Day WELCOME
Slide 2: Forward-Looking Statements
Forward-Looking Statements This presentation contains statements related to future events and expectations, including FIS's pro forma outlook for 2006 and the underlying assumptions, and as such, constitute forward-looking statements. These forward-looking statements are subject to known and unknown
Slide 3: Introduction
Introduction Bill Foley Chairman of the Board
Slide 4: FNF Overriding Goals
Maximize the value of FNF's assets Increase transparency of FNF subsidiaries Unlock shareholder value FNF Overriding Goals
Slide 5: New FIS
New FIS Fidelity National Information Services ("FIS") and Certegy have merged Tax-free, stock for stock merger, under which each share of FIS common stock was exchanged for 0.6396 shares of CEY common stock Current FIS shareholders own approximately 67.5% of the combined entity and CEY shareholders
Slide 6: New FIS
New FIS FIS is a leading provider of core financial institution processing and related information products and outsourcing services to financial institutions, mortgage lenders and real estate professionals CEY is a leading provider of card issuer services to financial institutions, principally comm
Slide 7: Strategic Rationale - FIS + CEY
Strategic Rationale - FIS + CEY Payment services capabilities Experienced management team Public currency
Slide 8: Ownership Structure
Ownership Structure Fidelity National Financial, Inc. (NYSE: FNF) Fidelity National Title Group, Inc. (NYSE: FNT) 82.5% Specialty Insurance 100% Sedgewick CMS 40% Fidelity National Information Services (NYSE: FIS) 50.8% Ownership Structure
Slide 9: The "New FIS"
The "New FIS" Combination creates one of the largest financial institution processing and services companies in the world: $4+ billion in annual revenue $1+ billion in annual EBITDA $7.2 billion in market capitalization
Slide 10: The "New FIS"
The "New FIS" Uniquely positioned to offer a broad suite of products and services to a diversified client base Transaction processing Payment services Risk management Mortgage processing Real estate products Financial institutions Retailers Mortgage lenders Real estate professionals Gaming industry
Slide 11: FIS Board of Directors
William P. Foley II Chairman and CEO, Fidelity National Financial (FNF) Chairman, Fidelity National Title (FNT) Chairman, Fidelity National Information Services, Inc. (FIS ) Daniel D. (Ron) Lane Chairman and CEO, Lane/Kuhn Pacific, Inc. Terry N. Christensen Managing Partner, Christenen, Miller, Fink
Slide 12: FIS Overview
FIS Overview Lee Kennedy Chief Executive Officer
Slide 13: Agenda
Agenda Why FIS and Certegy? Organization and reporting structure Integration status Business unit reports Financial summary
Slide 14: Why FIS and Certegy?
Why FIS and Certegy? Stronger Competitive Position Increase multi-product capabilities New vertical markets Increase geographic reach Create greater scale
Slide 15: Integrated Financial Solutions
Integrated Financial Solutions
Slide 16: Current Community Institution Data Flow
Current Community Institution Data Flow
Slide 17: FIS Integrated Data Flow
FIS Integrated Data Flow ‘Comprehensive: Account Information FIS Data Manager Processing ~ || Integrated Central Information File FIDELITY NATIONAL 18 THFORMATION SERNCES,
Slide 18: Risk Management Services
Risk Management Services FIS Risk Management Engines and Data Warehouses Retail POS Financial Institutions Check risk management services Check risk management New account verification Credit evaluation Financial Institution Integrated Check Risk Management Services
Slide 19: New Vertical Markets
New Vertical Markets FIS Credit unions Retail market Gaming Large bank market Expedited bill payment market Mortgage Auto Finance Certegy
Slide 20: Increase Geographic Reach
Increase Geographic Reach Operations in Key Geographic Regions FIS Presence Operating Centers
Slide 21: Create Greater Scale and Leverage
$7.2 billion market capitalization $4.0 billion estimated annual revenue Over $475 million estimated free cash flow Expansive global reach Over 60,000 customers in over 60 countries Over 19,000 employees worldwide Leverage data processing, sales, development and support Create Greater Scale and Leve
Slide 22: FIS Organizational Structure
Chairman Bill Foley FIS Organizational Structure CEO Lee Kennedy Integrated Financial Solutions Gary Norcross Enterprise Solutions Frank Sanchez International Mike Sanchez Mortgage Processing Services Hugh Harris Lender Information and Outsourcing Services Ernie Smith CFO Jeff Carbiener
Slide 23: Reporting Segments
Reporting Segments Transaction Processing Services Lender Processing Services East 2500 1500 Transaction Processing Services Enterprise solutions Banks >$5.0B in assets International Retail Gaming Integrated Financial Solutions F.I.'s < $5.0 in assets North American card E-Banking and bill pay Trans
Slide 24: Organic Growth Drivers
Organic Growth Drivers Internal growth of existing customers Market share gains New products and services New vertical markets Favorable Outsourcing Trends
Slide 25: Transaction Processing Services
Transaction Processing Services
Slide 26: Integrated Financial Solutions
Integrated Financial Solutions Gary Norcross
Slide 27: Agenda
Agenda Overview of division Market position Service and product philosophy Revenue model Business profiles Competition Marketing opportunities
Slide 28: Overview
Overview Division focused on delivering products and services in the domestic marketplace for financial institutions with a community focus Core bank and credit union processing Credit card, merchant, loyalty, stored value Item processing, branch capture, merchant capture, Check 21 and print service
Slide 29: Overview
Overview Over 5,000 employees / 75 locations Single sales organization 2005 revenue - $1.0 billion
Slide 30: Market Position
Market Position Markets served Commercial banks Savings institutions Credit unions 8,000+ customers 1,277 core processing customers 6,000+ payment services customers 1,100 item processing customers 850+ Internet banking and bill payment Credit Unions 8,908 Total Institutions 4,437 Clients 50% Market
Slide 31: Market Position
Market Position Market Ranking #1 in credit card processing #1 in loyalty #2 in core outsource processing #2 in item outsource processing Platforms utilized Complete line of hardware platforms is used based on the product and or service and the market focus Allows for price and efficiency competitiv
Slide 32: Service & Product Philosophy
Service & Product Philosophy "Full Service Provider" to financial institutions Fully integrated, single source technology solutions Advanced product solutions Customer-focused Relationship managers Executive and operations conferences Education / training Commitment to increase operating efficiencie
Slide 33: Revenue Model
Revenue Model Outsourced services Recurring fees based on number of accounts and transactions processed In-house License fees plus annual maintenance Contracts 3 to 7 years in length More than 95% retention rate Fees are assessed on number of accounts, cards, transactions, etc. Permits annual price
Slide 34: Business Profile: Core Processing
Business Profile Community-based institutions Banks (850) Credit unions (427) Deposits, loans, mortgages, general ledger, CRM, origination, back office support systems Significant add-on sales with core Averaged 25+% of all de novo financial institutions over the last 3 years (2005 - 39) Examples: H
Slide 35: Business Profile: Credit Processing
Business Profile Financial institutions and associations (CSCU, ICBA, State Leagues) 73% Market share of community-based issuers Credit, stored value, private label Cardholder services, loyalty programs Portfolio development programs Collections and risk management Merchant processing Examples: East
Slide 36: Business Profile: Item Processing
Business Profile Image capture of total deposited items Check 21 image clearing and settlement Branch and merchant capture Check image archival, retrieval and access capability Corporate customer cash management and related image services Remittance processing Print and mail services Examples: Sover
Slide 37: Item capture and lockbox sites map
San Francisco Los Angeles Sacramento San Antonio El Paso Waco St. Louis St. Paul Chicago Indianapolis Cleveland Cincinnati New York City Washington, DC Philadelphia Wilmington, DE Baltimore Fidelity Payments Network Phoenix Portland Albany, NY Orlando Little Rock Memphis Seattle Colorado Springs OKC
Slide 38: Business Profile: ATM/EFT Processing
Business Profile ATM processing Debit processing Signature PIN Stored value Volumes 4,130 ATMs 14M cards 137.8M transactions per month Fraud detection and prevention Examples: Rockland Trust, First Community Services, Digital Federal, Ocean Bank ATM/EFT Processing
Slide 39: Business Profile: eBanking Products and Services
Business Profile Domestic financial institutions Internet banking - 953 customers Bill payment - 870 customers Voice response - 788 customers Retail internet banking Commercial cash management Bill payment Voice response eDelivery solutions Examples: RG Premier, BancFirst, Mennonite FCU eBanking Pro
Slide 40: Competition
Competition Core processing Fiserv Jack Henry Metavante Open Solutions Card processing PSCU PEMCO Item processing Core processors
Slide 41: Competition
Competition ATM/EFT processing Core processors 5/3 Processing STAR Efunds Internet banking and bill payment Core processors Checkfree S1 ORCC
Slide 42: Market Opportunities
Market Opportunities Substantial cross-selling opportunity Universe of 18,000 Community Institutions 5,783 Served Only by Certegy 1,666 Served Only by FIS Combined Penetration of 45% of Market 683 Served by Both
Slide 43: Market Opportunities
Market Opportunities Significant add-on sales to existing base Integration of credit payment platform into other Fidelity platforms Core processing Delivery channels including branch, Internet banking and voice response CRM Expansion of product capabilities across a broader market Fraud Loyalty Merc
Slide 44: Market Opportunities
Market Opportunities Fidelity network - transaction and payment network leverage resulting in combined scale Core processing sales to existing Certegy credit card base
Slide 45: Enterprise Solutions
Enterprise Solutions Frank Sanchez
Slide 46: 2005 Revenue Breakdown by Business
Auto ComercialLending Banking Check Cash Access 46 64 447 267 120 2005 Revenue Breakdown by Business for US and Canada 2005 = $944 million (Combined FIS + Certegy) Check $267 Banking $447 Com'l lending $64 Auto Finance $46 Cash Access $120 (excludes revenues from FNF for technology support and purch
Slide 47: 2005 Revenue Breakdown by Category
Maintenance License Service Consult Other Retail Gaming 5.4 2.4 36.8 9.5 4.7 28 13 2005 Revenue Breakdown by Category Consulting 9.5% Bank Servicing 37% License 2.4% Other 4.7% Maintenance 5.4% Retail Servicing 28% Gaming 13%
Slide 48: Market Position
Market Position #1 Banking 6 of the top 10 and 44 of the top 100 banks use our deposit solutions. 7 of the top 10 and 28 of the top 50 use our lending platforms More than 40 million transactions per day and 25 million accounts processed in our Little Rock and Chicago Data Centers #1 Auto Finance 4 o
Slide 49: Market Position
Market Position #1 Commercial Lending 10 of the top 10, 20 of the top 25 and 40 of the top 100 Global banks depend on our commercial lending solutions #1 Check risk management $53 billion authorized in 2005 60 of the top 100 National retailers
Slide 50: Customers: Traditional Banks
Customers Traditional Banks
Slide 51: Customers: On-Line & Non Traditional Banks
Customers On-Line & Non Traditional Banks
Slide 52: Enterprise Banking Clients
Enterprise Banking Clients Outsourcing Clients Guaranty Bank Harris Bank MetLife Bank Morgan Stanley Dean Witter NetBank Paradigm Signature Bank SunTrust Bank TD Banknorth USAA Federal Savings Bank Webster Bank Westamerica Allstate Bank Ameriprise Financial (American Express Membership Bank) BancWes
Slide 53: Enterprise Banking Clients
Enterprise Banking Clients Professional Services Clients Bank of America (MBNA) CIT Citibank E*TRADE J. P. Morgan Chase Wachovia (SouthTrust)
Slide 54: Enterprise Banking Clients: Software Clients
Enterprise Banking Clients Software Clients ABN AMRO Aegon Real Estate Services Ag First Credit Agvantis Allstate Financial Services American Express Canada Associated Banc-Corp Bancorp South Bank Leumi Bank of America Bank of Nova Scotia BMO Nesbitt Branch Bank & Trust Case New Holland Credit Centu
Slide 55: Software Clients Continued
Enterprise Banking Clients Software Clients Continued Investors Group J.P. Morgan Chase (BankOne) JDV Limited John Deere Credit Key Corp La Federat des Caisses Populaires Lehman Brothers Bank Lutheran Church Extension Fund M&T Bank MacQuarie Bank Metropolitan Mortgage National City Navy Federal Cred
Slide 56: Strategic Positioning
Strategic Positioning To offer business solutions that represent a compelling proposition within the financial services marketplace. To be the reference vendor for banking application technology and processing utilities. To be the acknowledged leader in banking services operations and technology dom
Slide 57: Business Opportunities
Aging platform renewal Business process automation and reengineering Cash management Check imaging Core banking systems transformation Corporate banking integrated services strategies Enterprise payments Integrated, retail channel delivery systems Integration technologies Intelligent customer manage
Slide 58: Market Position & Credentials
Market Position & Credentials Investment and access to capital - $2 billion invested in M&A since 2003. Over $200 million invested in in-house R&D through 2004 and 2005. Focused expertise in financial services - experience in developing and operating large-scale banking applications Business process
Slide 59: Competition
Competition Banking In-house Oracle IBM SAP Fiserv Metavante Integration IBM/DWL Chordiant Oracle (Fusion) Channels Chordiant Oracle (Seibel) Corillian S1 Services IBM Oracle (i-flex) Wipro Accenture Tata
Slide 60: FIS Integration Architecture
FIS Integration Architecture
Slide 61: Leveraged Development Product Pipeline
Leveraged Development Product Pipeline Profile/DBI ALS-AF/DB2 Xpress 2.0 Customer Hub 1.0 Product Hub 1.0 TouchPoint SS TouchPoint Teller TouchPoint LO TouchPoint IB Default Hub 1.0 CoreBank/Java '05 '06 Xpress 1.6
Slide 62: Growth Market Evolution
Current Future Applications Processing Application Services Transformation Solutions Product Utilities Payment Utilities Channel Applications Integration Solutions Line of Business Solutions Application Centers Of Excellence Growth Market Evolution
Slide 63: Risk Management & Analytics
Risk Management & Analytics Renz Nichols
Slide 64: Risk Management & Analytics Overview
Risk Management & Analytics Overview Leading provider of risk management and payment services Propriety technology supported by best-in-class analytics Strategy Leverage analytic expertise into other information service markets FIS financial institution and information service customer bases represe
Slide 65: Financial Institution Products
Financial Institution Products Consumer Risk Management Fraud risk Default risk Application decisioning Account management Collections/Default management Relationship Management Account activation Account utilization Account retention Cross-sell Analytic-based Products
Slide 66: International
International Mike Sanchez
Slide 67: International Overview
Banking Cards Check 171 123 78 International Overview 2005 International Revenue = $372 million (FIS + CEY International) Check $78 Card $123 Banking $171
Slide 68: Revenue Distribution
Revenue Distribution Other Maintenance Recurring Consulting License 4 14 63 11 8 Recurring Service 63% License 8% Consulting 11% Maintenance 14% Other 4% 2005 FIS + CEY
Slide 69: Revenue by Region
Revenue by Region APR Latin EMEA East 21 16 63 2005 FIS & CEY Asia Pacific 21% Latin America 16% EMEA 63%
Slide 70: Market Position
Market Position Unique inventory of core banking assets FIS scale Software license and outsourcing Active in established and emerging markets CEY/FIS cross-sell opportunities Strong integration capabilities
Slide 71: FIS Footprint
FIS Footprint
Slide 72: Customers
Customers Rural Informatica
Slide 73: Competition
Competition Banking SAP Alnova i-Flex (Oracle) Temenos FNS (TCS) Cards TSYS FDR Integration IBM Chordiant Siebel (Oracle) Outsourcing IBM Accenture TCS
Slide 74: Revenue Model
Revenue Model License Maintenance Application management Processing Services
Slide 75: Market Opportunities
Market Opportunities Emerging markets China - Corebank/ALS Russia - Profile Brazil - Outsourcing Europe/APR Top-tier transformation Outsourcing TouchPoint
Slide 76: Lender Processing Services
Lender Processing Services FIDELITY NATIONAL THFORMATION SERNCES.
Slide 77: Lender Processing Services
Lender Processing Services Lender Processing Services Mortgage Processing Services Lender Information and Outsourcing Solutions
Slide 78: Mortgage Processing Services
Mortgage Processing Services Hugh Harris
Slide 79: Overview
Overview Began servicing the technology needs of financial services organizations in 1968 Provides specialized software and portfolio processing services to mortgage companies affiliated with retail banks and thrifts, traditional mortgage servicing companies, mortgage sub-servicers and sub-prime len
Slide 80: Overview
Overview Professional Services - including training, consulting, and conversion services - are offered to supplement the product offerings Fidelity's InterChange provides for the exchange and delivery of data between the different service providers (servicers, outsourcers, GSEs, etc.) Over $300 mill
Slide 81: Market Position
Market Position #1 provider of mortgage loan processing solutions in the U.S. The MSP platform is utilized by: 6 of the top 10 U.S. servicers 9 of the top 20 sub-prime servicers 14 of the top 25 loan originators MSP processes: Almost 27 million mortgage loans; over 50% market share $4.0 trillion in
Slide 82: Market Position
Market Position InterChange provides for the exchange of more than 20 million megabytes of data Fidelity's corporate scale and financial viability make it difficult for new companies to enter this market
Slide 83: Customers
Customers Clients include many of the Top 100 U.S. mortgage servicers as customers Wells Fargo Washington Mutual Bank of America ABN AMRO National City PHH Mortgage US Bank AMC (Ameriquest) Option One
Slide 84: Competition
Competition Our major competitor is Fiserv, with the DataLink and MortgageServ platforms, which service less than 10% of the market Selling points are some simulated real-time functionality in the cash and collections area and a full graphical presentation layer Drawbacks are significant core functi
Slide 85: Revenue Model
Revenue Model Pricing is designed with objective of stable, recurring revenue stream MSP and major ancillary products are priced on tiered, per loan schedules, allowing for revenue growth as client loan portfolio grows Most pricing defines a minimum level of usage, above which usage is billed on a p
Slide 86: Revenue Model (continued)
Revenue Model (continued) Most revenues are earned under long-term (3 to 5 year) contracts, and are not impacted by volatility in mortgage originations or refinance volumes. The number of loans on MSP is the primary driver of revenue growth Loan counts increased by over 5% in 2005 85% of revenue com
Slide 87: Market Opportunities
Market Opportunities Mortgage debt outstanding is expected to grow significantly through 2010 Expected growth in the portfolios of our existing customers as they expand HELOC, second home, and sub-prime lending Fidelity is making significant enhancements to its HELOC processing capabilities
Slide 88: Market Opportunities
Market Opportunities Industry consolidation will provide the opportunity to acquire additional loans Viable opportunities exist with prospects with portfolios between 25k and 200k loans Significant synergy opportunity with FNF's default management and business tax services
Slide 89: Market Opportunities: Mortgage Debt Outstanding Outlook
High growth in mortgage outstanding forecast Population of servicers declines Large servicers expand market share Mid-size servicers disappearing Increased focus on portfolio growth Large servicers home in onscale and cost management Market Opportunities Mortgage Debt Outstanding Outlook Statens $16
Slide 90: Lender Information and Outsourcing Solutions
Lender Information and Outsourcing Solutions Ernie Smith
Slide 91: Solutions Spanning the Entire Real Estate and Mortgage Life Cycle
Solutions Spanning the Entire Real Estate and Mortgage Life Cycle Collateral Scoring Portfolio Reviews Credit Under- writing Default Workflow Management Intelligent Imaging Electronic Invoices Reconveyance Assignments Posting & Publishing Field Services R.E.O. - Asset Management Default Title Settle
Slide 92: Fidelity National Default Solutions (FNDS)
Fidelity National Default Solutions (FNDS)
Slide 93: FNDS - Overview
FNDS provides end-to-end Technology, Analytics, and full service Outsourcing solutions that improve productivity, allow control over internal and third-party costs and reduce timelines for servicers, subservicers, investors and borrowers Technology and analytics solutions Workflow process management
Slide 94: Market Position
Market Position FNDS Foreclosure Solutions has grown consistently in a shrinking market taking share away from competitors and inhouse providers Source: National Mortgage News Quarterly Data Q3-2005; FIS Analysis 47.7 59.9 65.6 66.8 79.0 273.3 296.9 309.4 248.3 248.0 17% 20% 21% 32% 27% Q3-04 Q4-04
Slide 95: Doing Business with 20 of the Top 20 Servicers
Rank Servicer FNDS Client 1 Wells Fargo X 2 Countrywide X 3 Washington Mutual X 4 Chase X 5 Bank of America X 6 Citigroup X 7 GMAC Residential Holdings X 8 National City X 9 PHH Mortgage/Cendant X 10 BB&T X 11 Homecomings / RFC X 12 U.S. Bank X 13 SunTrust X 14 First Horizon X 15 IndyMac X 16 Aurora
Slide 96: Revenue Model
Revenue Model Transaction-based Licensing technology NewTrak (workflow management) NewImage (intelligent electronic imaging) DOCX (recording and lien release) Default outsourcing Foreclosure and bankruptcy (NewTrak) R.E.O. (asset management) Lien release (DOCX)
Slide 97: Market Opportunities
Market Opportunities Grow business as delinquencies increase from current historical low default rates Cross-sell products and services within default clients (i.e., Tax, Flood and MSP) Capture 100% of clients' business via leveraging FNDS relationships Lift market share via reducing client's servic
Slide 98: LSI Settlement Service Solutions
LSI Settlement Service Solutions
Slide 99: LSI Technological Tools and Products
LSI Provides Technological Tools and Products to Streamline the Mortgage Bankers Centralized Refinance and Equity Origination Process LSI leverages Fidelity's data/technology resources to reengineer the mortgage origination process, reducing cost, transaction cycle time and risk - enhancing the over
Slide 100: Doing Business with Top Originators
Doing Business with 18 of the Top 20 Originators Rank Originator LSI Client 1 Countrywide X 2 Wells Fargo X 3 Chase Home Finance X 4 Washington Mutual X 5 Bank of America X 6 Citigroup X 7 GMAC Residential Holdings X 8 Wachovia X 9 GMAC-RFC X 10 ABN Amro X 11 National City X 12 SunTrust X 13 IndyMac
Slide 101: Competition
Competition First American Transcontinental (First American) LandAmerica Multiple regional vendor management companies GAC (Fiserv) Lenders' captive companies Cheasapeake (Citi) GreenLink (Wachovia) - also provides services to Lending Tree
Slide 102: Market Opportunities
Market Opportunities Industry trend towards expansion of centralized market Intensify multi-product bundling offer and demand via development of point-of-sale decision functionality Expand offer of Title products to small and mid-size lenders (i.e., Local Solutions) Create new revenue sharing agreem
Slide 103: Mortgage Information Services
Mortgage Information Services Brian Hershkowitz
Slide 104: Overview
Overview FIS provides mortgage market participants and others with data and value added products that assist them in making decisions and managing risk. Clients also outsource key functional processes to reduce their costs Valuations Traditional, AVM, BPO, analytics, and anti-fraud Capital markets,
Slide 105: Market Position
Market Position FIS holds a leading market share position in each of our business units. Our product offering, in both breadth and depth, exceeds the competition We are exceeding well integrated to all the systems our customers interact with: GSE systems (Fannie Mae and Freddie Mac) Servicing system
Slide 106: Top Customers
Top Customers Wells Fargo Washington Mutual Bank of America GMAC Ameriquest Citigroup Option One Mortgage HSBC Chase New Century Mortgage Corporation
Slide 107: Competition
Competition We have competitors in almost all of our product lines. First American - in most of the same markets we are. Lacks critical origination and servicing transactional platforms (i.e. MSP & Empower) LandAmerica, Stewart, and LandSafe are all companies in some of our mortgage spaces but witho
Slide 108: Revenue Model
Revenue Model Transaction Model All units except those below Annual fee Insurance Risk Management Software sales and maintenance Aptitude Solutions Deferred Revenue Recognition Tax Services Flood Determination
Slide 109: Market Opportunities
Market Opportunities Cross-selling through our technology platforms Point of sale decisioning Targeted new product development Time saving analytics products Expanded outsourcing opportunities for our clients
Slide 110: Office of the Enterprise - OOE
Office of the Enterprise - OOE
Slide 111: OOE - Overview
OOE - Overview The OOE is an internal coordinator, single source of contact, and FIS' access to high level executives in strategic accounts Tracks the relationship, revenue and growth in top financial institutions Ensures FIS fully leverage the strength of its solutions to broaden and deepen its rel
Slide 112: Financial Summary
Financial Summary Jeff Carbiener
Slide 113: Revenue Model
Revenue Model Transaction Processing Services External drivers Technology spending Trend to outsourcing Strong recurring revenue base Multi-year contracts High retention rates Lender Processing Services External drivers Growth in home ownership/ # mortgages outstanding Trend to centralize and outsou
Slide 114: Historical Pro Forma Financial Highlights
Historical Pro Forma Financial Highlights 2005 2004 Variance Revenues $3,883.2 $3,689.5 5.3% EBITDA $990.6 $794.9 24.6% EBITDA Margin % 25.5% 21.5% 400 bps EBIT Margin % 14.3% 10.3% 400 bps Pro Forma Net Earnings $248.1 $177.0 40.2% Pro Forma Diluted EPS $1.28 $0.92 39.1% Cash Earnings $372.0 $300.6
Slide 115: 2005 Revenue Composition
Transaction Processing Services (62%) $2.4 Billion 4% organic growth Lender Processing Services (38%) $1.5 Billion 9% organic growth Information Services Outsourcing Services Mortgage Processing Services Enterprise Solutions Integrated Financial Solutions International 2005 Revenue Composition 43% 4
Slide 116: 2005 EBITDA Composition
2005 EBITDA Composition Transaction Processing Services (53%) $580 Million Lender Processing Services (47%) $510 Million Enterprise Solutions Integrated Financial Solutions International 41% 49% 10% (Excludes $99 million in administrative expense) Information Services Outsourcing Services Mortgage P
Slide 117: 2006 Assumptions
2006 Assumptions Sales Prospect Pipeline $1.2 billion (total contract value) Estimated Total Purchase Amortization* ^ $195 million Other D&A ^ $265 million Synergies ^ $ 30 million Interest Expense ^ $170 million Tax Rate 38.3% * Includes all acquisition intangibles *2006 guidance reflects 12 month
Slide 118: 2006 Assumptions
2006 Assumptions Capital Expenditures $225M to $275M Outstanding Debt (2/1/06) $3.0 Billion Projected Outstanding Debt (12/31/06) $2.5 Billion Average Diluted Shares 197 Million Targeted Debt-to-Capital (12/31/06) 40% - 45% *2006 guidance reflects 12 month forecast effective 1/1/2006. The 12 month f
Slide 119: Appendix A Reconciliation to GAAP (1 of 2)
A-1 Appendix A Reconciliation to GAAP (1 of 2)
Slide 120: Appendix A Reconciliation to GAAP (2 of 2)
A-2 Appendix A Reconciliation to GAAP (2 of 2)
Slide 121: Appendix B (1 of 4) Pro Forma Combined Statement of Operations
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Slide 122: Appendix B (2 of 4) Pro Forma Combined Statement of Operations
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Slide 123: Appendix B (3 of 4)
B-3 Appendix B (3 of 4) These combined statements of continuing operations include the historical statements of continuing operations of Certegy and FIS as though the merger had occurred on January 1, 2004, adjusted for items related to the transaction as described below: Reflects the increase in am
Slide 124: Appendix B (4 of 4)
B-4 Appendix B (4 of 4) (4) Reflects the tax benefit relating to the pro forma adjustments at the FIS tax rate of approximately 37.6% for the year ended December 31, 2004, and approximately 37.2% for the year ended December 31, 2005. This column is the sum of the historical activity of Aurum, Sanche
Fidelity National Information Services — Investor Day (February 2006) on 6ix