Fidelity National Information Services, Inc. · NYSE:FIS
Fidelity National Information Services — Q2 2014 Earnings Presentation
23 slides from Fidelity National Information Services's earnings presentation, Jul 29, 2014
Slide 1: Second Quarter 2014 Earnings Call Supplemental Materials
SECOND QUARTER 2014 EARNINGS CALL SUPPLEMENTAL MATERIALS July 29, 2014 ©2013 FIS and/or its subsidiaries. All Rights Reserved.
Slide 2: Agenda
Agenda TOPIC SPEAKER Second Quarter 2014 Frank Martire, Highlights 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 2014 Highlights
SECOND QUARTER 2014 HIGHLIGHTS Frank Martire Chairman and CEO
Slide 6: Second Quarter 2014 Highlights
Second Quarter 2014 Highlights Consistent Execution of Growth Strategy • $1.6 BILLION revenue, up 6% Revenue • $0.75 adjusted EPS, up 6% 0 $1.6B • $245 MILLION adjusted cash flow from operations • $219 MILLION returned to shareholders Q2 2011 Q2 2012 Q2 2013 Q2 2014 • INVESTING for growth 6
Slide 7: Operations Review
OPERATIONS REVIEW Gary Norcross President and Chief Operating Officer
Slide 8: Operational Highlights
Operational Highlights • Capitalizing on GLOBAL market trends .• Delivering strategic VALUE to clients •INVESTING in growth markets and innovation • Driving PROFITABLE GROWTH 8
Slide 9: Key Takeaways
Key Takeaways Strong first half results Strong sales and execution Expanding global client relationships Investing for growth 9
Slide 10: Financial Summary
FINANCIAL SUMMARY Woody Woodall Chief Financial Officer
Slide 11: Consolidated Results
Consolidated Results ($ Millions, adjusted, except per share data) METRICS Q2 First Half Revenue $ 1,599 $ 3,128 Growth vs. 2013 6% 5% Organic growth 5% 4% EBITDA $ 466 $ 914 Growth vs. 2013 3% 4% EBITDA Margin 29.2% 29.2% Net Earnings $ 217 $ 417 Growth vs. 2013 4% 6% EPS $ 0.75 $ 1.43 Growth vs. 2
Slide 12: Financial Solutions
Financial Solutions | ($ Millions, Adjusted) METRICS Q2 First Half Revenue $ 629 $ 1,216 Growth vs. 2013 7% 5% Organic growth 6% 4% EBITDA $ 249 $ 476 EBITDA Margin 39.6% 39.1% Refer to www.investor.fisglobal.com for reconciliation of GAAP to non-GAAP items. See appendix for description of non-GAAP
Slide 13: Payment Solutions
Payment Solutions | ($ Millions, Adjusted) METRICS Q2 First Half Revenue $ 624 $ 1,252 Growth vs. 2013 - 1% EBITDA $ 253 $ 518 EBITDA Margin 40.6% 41.4% Refer to www.investor.fisglobal.com for reconciliation of GAAP to non-GAAP items. See appendix for description of non-GAAP financial measures. 13
Slide 14: International Solutions
International Solutions | ($ Millions, Adjusted) METRICS Q2 First Half Revenue $ 347 $ 661 Growth vs. 2013 14% 11% Organic growth 12% 11% EBITDA $ 73 $ 135 EBITDA Margin 21.1% 20.4% Refer to www.investor.fisglobal.com for reconciliation of GAAP to non-GAAP items. See appendix for description of non-
Slide 15: Non-GAAP Reconciliation – Earnings Per Share
Non-GAAP Reconciliation – Earnings Per Share Q2 2014 Q2 2013 GAAP net earnings per share from continuing operations $ 0.62 $ 0.31 Adjustments: Purchase Price Amortization 0.13 0.14 Long-term Debt Refinance - 0.14 Capco Acquisition Adjustment - 0.12 Adjusted EPS $ 0.75 $ 0.71 Growth 6% Shares Outstan
Slide 16: Free Cash Flow
Free Cash Flow | ($ Millions) Q2 6 Months 2014 2014 Cash Flow from Operations $ 257 $ 479 Capco Acquisition Related Payments 2 30 Settlement Activity (13) (16) Adjusted Cash Flow from Operations $ 245 $ 493 Capital Expenditures (97) (187) Free Cash Flow $ 149 $ 307 Calculations may differ due to rou
Slide 17: Executing Capital Allocation Strategy
Executing Capital Allocation Strategy • Investing for growth – Innovation – Product and market expansion – Strategic, tuck-in acquisitions • Maintaining a strong balance sheet – $4.9 billion debt outstanding as of June 30 – 2.6 times debt-to-EBITDA • Returning cash to shareholders – $68 million in d
Slide 18: 2014 Financial Outlook
FINANCIAL OVERVIEW 2014 Financial Outlook METRIC RANGE Organic revenue growth 4.5% to 6.5% Earnings per share, as adjusted $3.05 to $3.16 Growth + 8% to 12% ~ adjusted net Free cash flow conversion earnings 18
Slide 19: Key Takeaways
KEY TAKEAWAYS Driving Consistent, Profitable GROWTH OPTIMIZING Performance Delivering Strategic Value to CLIENTS INVESTING in Innovation Committed to Delivering Superior SHAREHOLDER RETURNS 19
Slide 20: Appendix
APPENDIX
Slide 21: Foreign Currency
Foreign Currency International Solutions Group Costs Revenue Composition (Q2-14) Indian Other 6% Rupee 5% • Majority of costs within International Australian Dollar 5% Solutions Group are denominated in local currencies, reducing P&L impact Brazil Real 29% • Costs related to captive operation in Ind
Slide 22: Debt Summary
Debt Summary | ($ Millions) Jun 30, 2014 Dec 31, Rate Actual Pro Forma 2013 Revolver L+125 bps $ 156 $ 686 $ 29 (1) Undrawn revolver capacity 25 bps 1,844 1,314 1,971 Term Loan (2017 Maturity) L+125 bps 1,300 1,300 1,963 2017 Notes 1.450% 300 300 - 2018 Notes 2.000% 250 250 250 2020 Notes 7.875% 500
Slide 23: Non-GAAP Financial Measures
Non-GAAP Financial Measures • Organic revenue includes adjusted revenue plus pre-acquisition revenue for companies acquired during the applicable reporting periods. Organic revenue excludes the impact of foreign currency fluctuation. • Adjusted revenue (2014) includes reported revenue and is increas
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