Aci Worldwide, Inc. · NASDAQ:ACIW
Aci Worldwide — Investor Conferences Spring/Summer 2014
24 slides from Aci Worldwide's conference presentation, May 6, 2014
Slide 1: ACI Worldwide (ACIW) Investor Conferences Spring/Summer 2014
Exhibit 99.1 ACI Worldwide (ACIW) Investor Conferences Spring/Summer 2014
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
About ACI Worldwide • High quality products and services drive strong renewal rates on a large installed user base of over 5,000 customers • Long-term, blue-chip, geographically diverse customer base with low customer concentration Founded in 1975, ACI is a leading provider • Subscription-based mode
Slide 4: Global Distribution and Customer Base: The Leader in the Mega and Large FIs Market
Global Distribution and Customer Base: The Leader in the Mega and Large FIs Market 5,000+ customers in over 80 countries rely on ACI solutions 18 of the top 20 and 67 of the top 100 global banks are customers AMERICAS 1,950+ customers Customers: ~ 290 retailers globally EMEA 500+ customers Customers
Slide 5: ACI is a Leading Provider of Electronic Payments and Transaction Banking Solutions
ACI is a Leading Provider of Electronic Payments and Transaction Banking Solutions Retail Payments ACI Product Family Revenue % Highlights • Software sold directly to banks and payment processors In a highly fragmented • Solutions help authenticate, authorize, market, we control 6% of acquire, clear
Slide 6: Diverse Customer Base of Top Global Banks, Processors, Billers and Retailers
Diverse Customer Base of Top Global Banks, Processors, Billers and Retailers Provide Significant Cross Sell Opportunities FY 2013 Revenue by Customer No single customer represents more than 3% of consolidated revenue On average, customers use 3 ACI products or less representing a large cross sell op
Slide 7: Favorable Industry and Customer Trends
Favorable Industry and Customer Trends • Total addressable market is ~$20bn in 2013 and growing 7-8% overall Market • ~50% of addressable market is in-sourced (homegrown) applications 1 Sizing • Global transaction volume growth expected to be 9% CAGR through 2020 • Shift from paper to electronic • I
Slide 8: Strategy to Drive Superior Performance
Strategy to Drive Superior Performance Continued Focus on Control, Profitability and Growth • Continue to increase recurring revenue base • Expand customer relationships by cross-selling (on average customers use 3 ACI Growth products or less) Drivers • Lead payments transformation with Universal Pa
Slide 9: Financial Overview
UNIVERSAL PAYMENTS hC FINANCIAL OVERVIEW
Slide 10: Bookings Growth Leads to Large Backlog Provides Revenue and Earnings Visibility
Bookings Growth Leads to Large Backlog Provides Revenue and Earnings Visibility Renewal rates across ACI products >96% >95% of our contracts are transaction-based NET NEW SALES BOOKINGS HISTORICAL 60-MONTH BACKLOG $646 SNET 20%+ CAGR $600 $3,861 $3,910 $501 26% CAGR $2,416 $330 $315 $1,566 $1,617 20
Slide 11: ACI's Financial Summary, 2010 – 2014
ACI’s Financial Summary, 2010 – 2014 2013 revenue geographic mix: 63% Americas, 26% EMEA and 11% Asia/Pacific NON-GAAP REVENUE ADJUSTED EBITDA $1,070 26% CAGR 35% CAGR $295 $871 $239 $689 $191 $465 $418 $113 31% $88 29% 28% 24% 21% 2010 2011 2012 2013 2014E 2010 2011 2012 2013 2014E (millions) (mill
Slide 12: >70% Recurring Revenue
>70% Recurring Revenue STRONG RECURRING REVENUE GROWTH Monthly Recurring Revenue: SaaS Subscriptions & Transactions, Maintenance and License Fees (Paid Monthly, Quarterly only) $240 Non Recurring Revenue: Ongoing Implementations, Services, Capacity Sales and Annual License Fees $180 $120 $60 $0 Q1 Q
Slide 13: SaaS Subscriptions and Transactions Contribution Growth
SaaS Subscriptions and Transactions Contribution Growth 2009 segment contribution 2013 segment contribution SaaS Monthly license subscriptions & fees SaaS Monthly transactions, 9% subscriptions & license fees, 10% transactions 18% 41% Initial licenses fees 14% Initial licenses Services fees, 20% Mai
Slide 14: Low Cap Ex and Strong Cash Flow
Low Cap Ex and Strong Cash Flow CAPITAL EXPENDITURES OPERATING FREE CASH FLOW 4% 3% 4% 3% $151 3% $33 $63 $67 $19 $17 $13 $10 $30 $24 2009 2010 2011 2012 2013 2009 2010 2011 2012 2013 (millions) (millions) % of Non-GAAP Revenue ACI generates strong free cash flow Low capital expenditures needed to m
Slide 15: Efficient Use of Cash - Aggressive Share Repurchases
Efficient Use of Cash - Aggressive Share Repurchases CUMULATIVE SHARE REPURCHASES Average price $32.58/share $450,000,000 14,000,000 $400,000,000 12,000,000 $350,000,000 10,000,000 $300,000,000 $409m $250,000,000 8,000,000 $200,000,000 6,000,000 $150,000,000 $1090m 4,000,000 $100,000,000 $50,000,000
Slide 16: 2014 Guidance
2014 Guidance 2014 Guidance Key Metrics Low High Non-GAAP Revenue $1,060 $1,080 Adjusted EBITDA $290 $300 $s in millions Guidance Sales, net of term extension, growth in the upper single digits Revenue and margin phasing by quarter consistent with seasonal history Q2 revenue expected to be in the ra
Slide 17: 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 MEETS THE CHALLENGE OF CHANGE 17
Slide 18: High Quality Software Model Drives Superior Performance
High Quality Software Model Drives Superior Performance • Leading market position • High retention and renewal rates • Pricing power and large barriers to entry • Significant recurring revenue • Scalable model with improving margin • Low cash investment required • Strong cash flow and balance sheet
Slide 19: Non-GAAP Financial Measures
Non-GAAP Financial Measures 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 Official Payments, Online Resources and S1 and significant tran
Slide 20: Non-GAAP Financial Measures
Non-GAAP Financial Measures Non-GAAP Revenue (millions) 2010 2011 2012 2013 Revenue $ 418 $ 465 $ 667 $ 865 Deferred revenue fair value adjustment - - 22 6 Non-GAAP revenue $ 418 $ 465 $ 689 $ 871 Adjusted EBITDA (millions) 2010 2011 2012 2013 Net income (loss) $ 27 $ 46 $ 49 $ 64 Plus: Income tax e
Slide 21: Non-GAAP Financial Measures
Non-GAAP Financial Measures 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
Slide 22: Non-GAAP Financial Measures
Non-GAAP Financial Measures 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 with
Slide 23: Forward-Looking Statements
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 “belie
Slide 24: Universal Payments
UNIVERSAL PAYMENTS hC
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