Fidelity National Information Services, Inc. · NYSE:FIS
Fidelity National Information Services — Q2 2013 Earnings Presentation
30 slides from Fidelity National Information Services's earnings presentation, Jul 30, 2013
Slide 1: Second Quarter 2013 Earnings Call Supplemental Materials
SECOND QUARTER 2013 EARNINGS CALL SUPPLEMENTAL MATERIALS July 30, 2013 ©2013 FIS and/or its subsidiaries. All Rights Reserved.
Slide 2: Agenda
Agenda TOPIC SPEAKER Frank Martire, Results Summary Chairman and CEO Gary Norcross, Operations Review President and Chief Operating Officer Woody Woodall, Financial Summary 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: Second Quarter 2013 Highlights
SECOND QUARTER 2013 HIGHLIGHTS Frank Martire Chairman and CEO
Slide 6: Driving Performance
Driving Performance • Continued GROWTH – 14th consecutive quarter of organic growth •STRONG first half RESULTS • Global SALES EXECUTION Refer to www.investor.fisglobal.com for reconciliation of GAAP to non-GAAP items. See appendix for description of non-GAAP financial measures. 6
Slide 7: Executing our Business Strategy
Executing our Business Strategy • Ongoing focus on OPTIMIZING PERFOMANCE • Driving strategic value to CLIENTS • Committed to enhancing SHAREHOLDER RETURN 7
Slide 8: Operations Review
OPERATIONS REVIEW Gary Norcross President and Chief Operating Officer
Slide 9: Global Sales Execution
Global Sales Execution • Ongoing INVESTMENT SPENDING • Opportunities SPAN ALL MARKETS • Driving GROWTH 9
Slide 10: North America
North America • Spending outlook continues to improve • Ongoing investment around core solutions, consulting and services • Continued strength in mobile channel 10
Slide 11: International
International • Growth across all regions • Potential to accelerate growth in Europe • Continued momentum in Asia and Latin America 11
Slide 12: Global Financial Institutions
Global Financial Institutions • Global and multinational operations • FIS leading with consulting expertise, global services capabilities and technology • Large-scale transformation • Key market differentiator 12
Slide 13: Innovation and Transformation
Innovation and Transformation Leveraging Existing FIS Capabilities Enabling Payments Innovation 13
Slide 14: Key Takeaways
Key Takeaways Driving performance; executing to plan Continued sales growth Focused on operational excellence and solution innovation Foundation for superior performance 14
Slide 15: Financial Summary
FINANCIAL SUMMARY Woody Woodall Chief Financial Officer
Slide 16: Consolidated Results
Consolidated Results | ($ Millions, except per share data) METRICS 2nd QUARTER FIRST HALF Revenue $1,513 $2,991 Growth 4% 4% Organic growth 4% 4% Adjusted EBITDA $450 $878 Growth 3% 5% Adjusted EBITDA Margin 29.8% 29.4% Y-O-Y Change (20 bps) +40 bps Adjusted Net Earnings $209 $391 Growth 6% 10% Adju
Slide 17: Financial Solutions
Financial Solutions | ($ Millions) METRICS 2nd QUARTER FIRST HALF Revenue $587 $1,162 Growth 4% 5% Organic Growth 3% 4% EBITDA $231 $459 Growth 8% 8% EBITDA Margin 39.4% 39.5% Y-O-Y change +120 bps +110 bps Refer to www.investor.fisglobal.com for reconciliation of GAAP to non-GAAP items. See appendi
Slide 18: Payment Solutions
Payment Solutions | ($ Millions) METRICS 2nd QUARTER FIRST HALF Revenue $623 $1,235 Growth 3% 3% Growth, as adjusted(1) 4% 4% EBITDA $263 $521 Growth 5% 7% EBITDA Margin 42.2% 42.2% Y-O-Y change +100 bps +170 bps Refer to www.investor.fisglobal.com for reconciliation of GAAP to non-GAAP items. See a
Slide 19: International Solutions
International Solutions | ($ Millions) METRICS 2nd QUARTER FIRST HALF Revenue $304 $595 Growth 6% 5% Organic growth 8% 9% EBITDA $65 $124 Growth 3% 8% EBITDA Margin 21.4% 20.9% Y-O-Y change (60 bps) +60 bps Refer to www.investor.fisglobal.com for reconciliation of GAAP to non-GAAP items. See appendi
Slide 20: Consolidated Results – Earnings per Share
Consolidated Results – Earnings per Share 2nd FIRST QUARTER HALF GAAP net earnings per share from continuing operations $0.31 $0.81 Adjustments: Acquisition-related amortization 0.14 0.27 Gain on previously held minority interest in mFoundry(2) - (0.02) Debt refinancing costs(3) 0.14 0.14 Capco adju
Slide 21: Free Cash Flow
Free Cash Flow | ($ Millions) 2nd FIRST QUARTER HALF Cash flow from operations $157 $365 Bond premium payment 52 52 Settlement activity (10) 4 Adjusted cash flow from operations 199 421 Capital expenditures (83) (157) Free Cash Flow $115 $263 Calculations may differ due to rounding. Refer to www.inv
Slide 22: Executing Capital Allocation Strategy
Executing Capital Allocation Strategy • Returning cash to shareholders – $63 million in dividends – $125 million in share repurchases • Maintaining strong balance sheet – Completed debt refinancing in April – Completed notes redemption in May – $4.8 billion debt outstanding as of June 30 – 2.7 times
Slide 23: Key Takeaways
Key Takeaways Consistent EXECUTION MAINTAINING full year OUTLOOK DISCIPLINED capital allocation Focused on SHAREHOLDER RETURNS 23
Slide 24: Appendix
APPENDIX
Slide 25: Non-GAAP Financial Results – Q2 2013
Non-GAAP Financial Results – Q2 2013 | ($ Millions) Organic revenue growth is calculated as the difference between (A) reported revenue for the current period excluding foreign currency impacts and (B) reported revenue for the prior period plus pre-acquisition revenues for prior period acquisitions
Slide 26: Non-GAAP Financial Results – YTD 2013
Non-GAAP Financial Results – YTD 2013 | ($ Millions) Organic revenue growth is calculated as the difference between (A) reported revenue for the current period excluding foreign currency impacts and (B) reported revenue for the prior period plus pre-acquisition revenues for prior period acquisitions
Slide 27: Foreign Currency
Foreign Currency International Solutions Group Costs Revenue Composition (Q2-13) Indian Rupee • Majority of costs within International 4% All Other US Solutions Group are denominated in 9% Dollar(1) local currencies, reducing P&L impact 15% GBP • Costs related to captive operation in Sterling India
Slide 28: Debt Summary
Debt Summary | ($ Millions) June 30, 2013 March 31, 2013 Balance Rate Balance Rate Term Loan A 2017 Maturity $ 1,988 L + 1.50% $ 1,995 L + 1.50% Revolver 300 Various 622 Various Senior Unsecured Notes 2017 Maturity - - 750 7.625% 2018 Maturity 250 2.000% - - 2020 Maturity 500 7.875% 500 7.875% 2022
Slide 29: Non-GAAP Financial Measures
Non-GAAP Financial Measures EBITDA is earnings from continuing operations before interest, taxes and depreciation and amortization. Adjusted EBITDA (2013 comparative data) excludes adjustments related to the December 2010 acquisition of Capco. Adjusted EBITDA (2012 comparative data) excludes charges
Slide 30: Notes
Notes (1) Excludes check-related businesses which declined $4 million (4%) to $105 million in the current year quarter, and declined $8 million (4%) to $209 million year-to-date. (2) Gain resulting from the purchase of the remaining shares of mFoundry, Inc., representing the difference between the f
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