Aci Worldwide, Inc. · NASDAQ:ACIW
Aci Worldwide — Investor Presentation (March 2015)
29 slides from Aci Worldwide's investor presentation, Mar 4, 2015
Slide 1: ACI Worldwide (ACIW) March 2015
ACI Worldwide (ACIW) March 2015 Exhibit 99.1
Slide 2: Safe Harbor For Forward-Looking Statements
Private Securities Litigation Reform Act of 1995 Safe Harbor For Forward-Looking Statements This presentation contains forward-looking statements based on current expectations that involve a number of risks and uncertainties. The forward-looking statements are made pursuant to safe harbor provisions
Slide 3: About ACI Worldwide
2014 Pro Forma Revenue $1046 Million 2014 Pro Forma Adjusted EBITDA $267 Million 12/31/2014 60-Month Backlog $4.2 Billion Founded in 1975, ACI is a leading provider of electronic payments and transaction banking software solutions for financial institutions, retailers, processors and billers worldwi
Slide 4: Global Distribution and Customer Base
AMERICAS 1,950+ customers 5,600+ customers in over 80 countries rely on ACI solutions 18 of the top 20 and 67 of the top 100 global banks are customers ~ 4,500 employees in 36 countries AMERICAS 1,950+ customers EMEA 500+ customers ASIA/PACIFIC 150+ customers Customers: ~ 180 processors globally Cus
Slide 5: ACI is a Leading Provider of Electronic Payments and Transaction Banking Solutions
Fraud Bill Pay / Collections Online Banking Wholesale Payments Retail Payments ACI Product Family Revenue % Highlights ACI is a Leading Provider of Electronic Payments and Transaction Banking Solutions • Tools to prevent payment transaction fraud and enterprise financial crimes • Case management • I
Slide 6: What is Universal Payments
What is Universal Payments A powerful overarching idea • The breadth and depth of our solution set • • Our unique payments technology • A future vision • Enables our customers to adopt an enterprise payments approach ACI’s solution set and payments capabilities are unrivaled in the market Retail to
Slide 7: The future of payments is real-time
The future of payments is real-time Real-time Industry Collaboration Secure Hosting Integrated Payments Payments Strategy Key Constructs Any - to - Any
Slide 8: Segments and Solutions
Segments and Solutions Two Sides of Strategy
Slide 9: Solutions Meeting Market Needs Today
Solutions Meeting Market Needs Today
Slide 10: Delivering an Omni-channel Customer Experience for one of the world's largest banks
CHALLENGE •Aspirations to be the primary bank of its customers held back by inconsistent experience caused by legacy technology •Improve cross sell and retention rates BENEFITS •Significant operating cost improvements • New channels deployed in 4 months instead of 18, reducing deployment costs by 80
Slide 11: Complex Payments Environment Leads to Inconsistent Customer Experience
Before Complex Payments Environment Leads to Inconsistent Customer Experience Online banking AML Call center Branch system Payment engine Mobile POS ATM Payment engine Payment engine Fraud detection Fraud detection Fraud detection Payment engine Tablet Payment engine Core Interface
Slide 12: Streamlined, Consistent Omni-channel Experience
After Fraud detection and AML Branch system Online banking Mobile POS Tablet Streamlined, Consistent Omni-channel Experience Future payment types and channels Payment engine Core banking Call Center FRAMEWORK Payment engine ATM
Slide 13: Advantage
The Questions? • Leading market position • High retention and renewal rates • Significant recurring revenue • Scalable, fixed-cost model with improving margin • Low cash investment required Advantage
Slide 14: Financial Section
MACE ements
Slide 15: Bookings Growth Leads to Large Backlog Providing Revenue and Earnings Visibility
$4,160 $1,566 $1,617 $2,416 $3,861 SNET 22%+ CAGR $315 $330 $501 $600 $702 Renewal rates across ACI products >96% >95% of our contracts are transaction-based NET NEW SALES BOOKINGS HISTORICAL 60-MONTH BACKLOG 28%+ CAGR (millions) (millions) Bookings Growth Leads to Large Backlog Provides Revenue and
Slide 16: ACI's Financial Summary
29% 21% 24% 28% 29% $1,018 $418 $465 $689 $871 $261 $88 $113 $191 $239 NON-GAAP REVENUE ADJUSTED EBITDA Adjusted EBITDA % Net Margin 25% CAGR 31% CAGR (millions) (millions) 2014 revenue geographic mix: 69% Americas, 23% EMEA and 8% Asia/Pacific ACI’s Financial Summary, 2010 – Notes: Net Margin based
Slide 17: Fixed Costs Provide Leverage in Model
• Monthly Recurring Revenue predictable & growing, now >70% of total revenue • Non-recurring revenue is strongest in Q4 • EBITDA margin spikes follow revenue Fixed Costs Provide Leverage in Model $0 $50 $100 $150 $200 $250 $300 $350 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q
Slide 18: SaaS Subscriptions and Transactions Contribution Growth
SaaS Subscriptions and Transactions Contribution Growth 2009 segment contribution 2014 segment contribution • SaaS Subscriptions & Transactions have grown from ~10% to over 40% • Overall monthly recurring revenues have grown from ~60% to over 70% Monthly recurring segments Non recurring segments Saa
Slide 19: Low Cap Ex and Strong Cash Flow
OPERATING FREE CASH FLOW CAPITAL EXPENDITURES % of Non-GAAP Revenue Low capital expenditures needed to maintain existing client base ACI generates strong free cash flow • (millions) (millions) Low Cap Ex and Strong Cash Flow $13 $19 $16.7 $32.5 $34.9 3% 4% 2% 4% 3% $63 $67 $24 $151 $134 NOLs startin
Slide 20: Backlog is Foundation, Cross Sales Add Growth
• Existing customer base and low customer attrition provide baseline for future revenue • Competitive positioning and high R&D spending provides pricing power • Electronic payment growth at 6-8% CAGR • Cross sales typically account for 2/3 of net new business Cross sales and new customer wins Backlo
Slide 21: Financial Outlook
ACI osvitents:
Slide 22: Financial Summary – Five-year Targets
Financial Summary – Five-year Targets • Organic revenue growth Mid-to-upper single digits • Adjusted EBITDA margin 100 bps expansion per year • Operating free cash flow Track adjusted EBITDA growth • Sales net of term extension growth High single digits
Slide 23: Non-GAAP financial measures explanation
To supplement our financial results presented on a GAAP basis, we use the non-GAAP measure indicated in the tables, which exclude certain business combination accounting entries related to the acquisitions of Online Resources and S1 and significant transaction related expenses, as well as other sign
Slide 24: Non-GAAP Financial Measures
Non-GAAP Financial Measures Non-GAAP Revenue (millions) Revenue $ $ $ $ 1,016 $ Deferred revenue fair value adjustment - - Non-GAAP revenue $ $ $ $ 1,018 $ Adjusted EBITDA (millions) Net income (loss) $ $ $ $ $ Plus: Income tax expense (benefit) Net interest expense Net other expense - - Depreciatio
Slide 25: Appendix
ACI osvitents:
Slide 26: Operating free cash flow definition
ACI is also presenting operating free cash flow, which is defined as net cash provided by operating activities, plus payments associated with the cash settlement of acquisition related options and significant acquired opening balance sheet liabilities, plus net after-tax payments associated with emp
Slide 27: Backlog estimates definition
ACI also includes backlog estimates, which include 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 the corresponding backlog
Slide 28: 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 “believes,” “ will,” “expects,” “
Slide 29: MACE ements
MACE ements