Aci Worldwide, Inc. · NASDAQ:ACIW
Aci Worldwide — Investor Day (May 2019)
27 slides from Aci Worldwide's investor day presentation, May 21, 2019
Slide 1: Analyst Briefing: Driving the real-time digital payments experience
ANALYST BRIEFING Driving the real-time digital payments experience MAY 21, 2019 Exhibit 99.1
Slide 2: 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 of the Private Securities Litigation Reform Act of 1995. A discussion of these forward-look
Slide 3: Welcome
WELCOME John Kraft Vice President, Investor Relations and Strategic Analysis
Slide 4: Analyst Briefing: Mike Braatz
ANALYST BRIEFING Mike Braatz Chief Product & Marketing Officer
Slide 5: Any Payment, Every Possibility
Any Payment, Every Possibility Note (1): 2019 Revenue and Adj. EBITDA are Guidance metrics. Adjusted EBITDA is a non-GAAP measures. Adjusted EBITDA excludes significant transaction-related expenses. Speedpay results included for the period May 9 through December 31, 2019. $1.315 – 1.345 Billion FY 2
Slide 6: 2023 Addressable Transaction Opportunity
2023 Addressable Transaction Opportunity 2.1 TRILLION Transactions 2023 3.6 TRILLION Transactions 2023 1.5 TRILLION Transactions 2023 Addressable with Current Solution and Segment Focus White Space Opportunity
Slide 7: ACI's Addressable Transaction Opportunity by Segment
ACI’s Addressable Transaction Opportunity by Segment 1.3 TRILLION Transactions 2018 2.1 TRILLION Transactions 2023 Corporates 8 B Merchants 137 B Intermediaries 598 B Banks 560 B Corporates 10 B Merchants 210 B Intermediaries 1050 B Banks 865 B ACI % share: High teens to low 20s ACI % share: Low-to-
Slide 8: Growth Trends Transforming Transaction Opportunity
Growth Trends Transforming Transaction Opportunity Cloud/Open Source Digital Transformation Democratization of Payments Real-Time Non-Card Payments Internet of Things Payments Intelligence
Slide 9: Monetizing the Transaction Opportunity
Monetizing the Transaction Opportunity Value-Based Pricing Approach Opportunity to grow price per transaction by providing additional value-added services The cloud and open source infrastructure software are key to efficiency gains Corporates Merchants Intermediaries Banks Type C2B end-to-end hoste
Slide 10: Deployment Models
2 Deployment Models *Sum of percentage revenue growth and net adjusted EBITDA margin of at least 40% ACI ON DEMAND ACI ON PREMISE Licensed software model Migrate customers to modernized IP UP Retail Payments Solution (RPS) New UP Real-Time Payments Solution (RTPS) Cross-selling to existing customers
Slide 11: The Combined Opportunity
The Combined Opportunity Market leadership in biller direct, and 3,700+ customers Speedpay brings immediate scale to ACI On Demand Updating 2019 guidance Unifies two leading platforms and brings together top talent Accelerates technical innovation through increased R&D and shared enhancements Accele
Slide 12: Unified Bill Payment Solution
Unified Bill Payment Solution Real-time bill payment platform Any Payment Control of end-to-end experience Distinctive digital user experience Speedpay Front End Notifications eBills Portals IVR In-Person Settlement Collections Disbursement Payment Mobile Wallet Presentment ACI Back End Vertical int
Slide 13: Mobile bill view and payment
Enables consumers to view bills and initiate payments on iOS and Android smartphones with Apple Wallet or Google Pay Customers can link consumers to more products and services directly from bills
Slide 14: Focus on Specific Verticals for Traditional Billing
Consumer Finance Education Insurance Utilities Government Vertical-specific features are built onto the platform Partnerships with leading ERP providers in target verticals Focus on Specific Verticals for Traditional Billing
Slide 15: ACI Merchant Payments Platform
ACI Merchant Payments Platform In-Store Payments Mobile POS eCommerce mCommerce Global Coverage Intelligent Routing Tokenization EMV Integrated Fraud Protection Real-time, omni-channel merchant payments platform Any Payment Modern digital payment experience Integrated payments intelligence Scalabili
Slide 16: Delivering Global Payments Coverage
Delivering Global Payments Coverage ALTERNATIVE PAYMENTS OTHERS PREPAYMENT WALLET ONLINE TRANSFER MOBILE INVOICE CARDS CREDIT DEBIT PRE-PAID DIRECT DEBIT INSTALLMENTS
Slide 17: Merchant and Biller Needs Are Converging
Merchant and Biller Needs Are Converging Merchant Payments Digital Subscription Billing Bill Payments
Slide 18: Subscription Billing Segments
Subscription Billing Segments Digital Subscription Services Verticals Examples Physical Goods Music Video/other media Video games Education Finance News Dating Healthcare/wellness Health/fitness Restaurant delivery Grocery delivery Fashion Personal care Automotive Spotify, Pandora Netflix, ESPN PS4,
Slide 19: Strong Digital Subscription Growth
Strong Digital Subscription Growth Number of bills in billions Growth driven by: Digital native billers Traditional players adopting subscription models Traditional Billing Digital Subscription – Services Digital Subscription – Physical Goods 37 55 3% 18% 21% CAGR Digital Subscriptions Traditional B
Slide 20: Digital Subscription Pain Points
Digital Subscription Pain Points High payment acceptance costs High churn Lack of end-to-end solutions Missing vertical specific capabilities Limited customer engagement experience
Slide 21: ACI Solution Strategy
ACI Solution Strategy Speedpay Front End Notifications eBills Portals IVR In-Person Settlement Collections Disbursement Payment Mobile Wallet Presentment ACI Back End In-Store Payments Mobile POS eCommerce mCommerce Global Coverage Intelligent Routing Tokenization EMV Integrated Fraud Protection Uni
Slide 22: ACI Real-Time Digital Payments Platform
ACI Real-Time Digital Payments Platform Combines the best of commerce + billing capabilities Any Payment Modern digital payment experience Global coverage Scalability, security, availability
Slide 23: ACI Value Proposition for Merchants and Billers
ACI Value Proposition for Merchants and Billers Higher acceptance rates Reduced payments costs Stronger customer engagement Payments intelligence to reduce fraud and drive new revenue streams Global Any Payment
Slide 24: Any Payment, Every Possibility
ANY PAYMENT, EVERY POSSIBILITY. ®
Slide 25: Q&A
Q&A Philip Heasley President and CEO Scott Behrens Chief Financial Officer Mike Braatz Chief Product & Marketing Officer
Slide 26: 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,” “a
Slide 27: Risk Factors
All of the foregoing forward-looking statements are expressly qualified by the risk factors discussed in our filings with the Securities and Exchange Commission. Such factors include, but are not limited to, increased competition, the success of our Universal Payments strategy, demand for our produc