Fidelity National Information Services, Inc. · NYSE:FIS
Fidelity National Information Services — Q2 2015 Earnings Presentation
26 slides from Fidelity National Information Services's earnings presentation, Jul 23, 2015
Slide 1: Second Quarter 2015 Earnings Call
Second Quarter 2015 Earnings Call July 23, 2015 ©2013 FIS and/or its subsidiaries. All Rights Reserved.
Slide 2: Agenda
Agenda TOPIC SPEAKER Gary Norcross, Business Summary President and CEO Woody Woodall, Financial Summary Chief Financial Officer 2
Slide 3: Disclosures
Disclosures 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
Slide 4: Business Summary
Business Summary Gary Norcross President and CEO
Slide 5: Q2 2015 Highlights
Q2 2015 Highlights • $1.6 BILLION revenue; up 3% on a constant currency basis • $0.74 adjusted EPS • $224 MILLION returned to shareholders – $447 million returned year-to-date For a description of non-GAAP measures and a reconciliation of GAAP to non-GAAP measures, see Appendix. 5
Slide 6: Market Review
Market Review Integrated Financial Solutions Global Financial Solutions • U.S. financial institutions • Large global and international clients • Comprehensive outsourced solutions • Recurring services led by intellectual property • High recurring revenue • Significant cash flow generation • Higher r
Slide 7: Consistent Execution of Strategy
Consistent Execution of Strategy • Investing for GROWTH • MAINTAINING a strong balance sheet • Returning cash to our SHAREHOLDERS 7
Slide 8: Financial Summary
FINANCIAL SUMMARY Woody Woodall Chief Financial Officer
Slide 9: Consolidated Results
Consolidated Results ($ millions, adjusted, except per share data) METRICS Q2 Six Months Revenue $ 1,587 $ 3,142 Reported Growth -0.8% 0.4% Constant Currency Growth 3.2% 3.9% EBITDA $ 453 $ 878 Growth -2.9% -3.9% EBITDA Margin 28.5% 28.0% Net Earnings $ 211 $ 397 EPS $ 0.74 $ 1.39 For a description
Slide 10: Integrated Financial Solutions
Integrated Financial Solutions ($ millions, adjusted) METRICS Q2 Six Months Revenue $ 969 $ 1,938 Reported Growth 0.0% 1.2% EBITDA $ 378 $ 757 EBITDA Margin 39.0% 39.0% For a description of non-GAAP measures and a reconciliation of GAAP to non-GAAP measures, see Appendix. 10
Slide 11: Integrated Financial Solutions
Integrated Financial Solutions Revenue Contribution – Q2 & YTD Revenue Composition – YTD ($ millions) RECURRING REVENUE | 89% Q2 GROWTH YTD GROWTH PROFESSIONAL SERVICES | 7% Payment Solutions $ 415 -3% $ 818 -4% SOFTWARE | 1% Business Solutions 278 5% 564 4% OTHER | 3% Banking Solutions 276 0% 556 6
Slide 12: Global Financial Solutions
Global Financial Solutions ($ millions, adjusted) METRICS Q2 Six Months Revenue $ 619 $ 1,206 Reported Growth -1.9% -0.7% Constant Currency Growth 8.1% 8.2% EBITDA $ 123 $ 213 EBITDA Margin 19.8% 17.6% For a description of non-GAAP measures and a reconciliation of GAAP to non-GAAP measures, see Appe
Slide 13: Global Financial Solutions
Global Financial Solutions Revenue Contribution – Q2 & YTD Revenue Composition – YTD ($ millions, Constant Currency) RECURRING SOLUTIONS & SERVICES REVENUE (1) | 70% CC CC YTD Q2 GROWTH GROWTH North America $ 277 -4% $ 552 -2% CONSULTING / PROFESSIONAL SERVICES | 29% Europe 221 25% 412 21% Latin Ame
Slide 14: Executing Capital Allocation Strategy
Executing Capital Allocation Strategy • Re-investing for growth – Innovation – Product and market expansion • Returning cash to shareholders – $224 million returned to shareholders in Q2: • $150 million in share repurchases • $74 million in dividends • Maintaining a strong balance sheet – $5.0 billi
Slide 15: Investing in growth, market leadership, shareholder returns
INVESTING in growth MARKET leadership Committed to delivering superior SHAREHOLDER RETURNS 15
Slide 16: Appendix
APPENDIX
Slide 17: Debt Summary
Debt Summary ($ in millions) Jun 30, Dec 31, Rate 2015 2014 Revolver (2019 Maturity) (1) L+125 bps $ 775 $ 795 Undrawn revolver capacity 15 bps 2,225 2,205 Term Loan (2017 Maturity) L+125 bps 1,300 1,300 2017 Notes 1.450% 300 300 2018 Notes 2.000% 250 250 2022 Notes 5.000% 700 700 2023 Notes 3.500%
Slide 18: Non-GAAP Financial Information and Reconciliation
Non-GAAP Financial Information and Reconciliation 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 transactio
Slide 19: Definitions of Non-GAAP Financial Measures
Definitions of Non-GAAP Financial Measures Constant currency revenue is reported revenue excluding the impact of fluctuations in foreign currency exchange rates in the current year. Growth in revenue presented for 2015 year to date on a constant currency basis reflects a comparison of constant curre
Slide 20: Definitions of Non-GAAP Financial Measures
Definitions of Non-GAAP Financial Measures (continued) Adjusted net earnings from continuing operations excludes the after tax impact of certain costs and other transactions which management deems non-recurring or unusual in nature, the removal of which improves comparability of operating results ac
Slide 21: Reconciliation of GAAP to Non-GAAP Financial Measures
Reconciliation of GAAP to Non-GAAP Financial Measures ($ in Millions, Except Per Share Data, Unaudited) Three Months Ended June 30, 2015 GAAP NON GAAP Three Months Purcha s e Three Months Ended Pri ce Ended June 30, 2015 Acq Integra tion Ga mi ng Subtotal Amortiza tion June 30, 2015 (Una udi ted) a
Slide 22: Reconciliation of GAAP to Non-GAAP Financial Measures
Reconciliation of GAAP to Non-GAAP Financial Measures ($ in Millions, Except Per Share Data, Unaudited) Six Months Ended June 30, 2015 GAAP NON GAAP YTD Purcha s e YTD Ended Pri ce Ended June 30, 2015 Acq Integra tion Ga mi ng Gl oba l Subtotal Amortiza tion June 30, 2015 (Una udi ted) a nd Severa n
Slide 23: Reconciliation of GAAP to Non-GAAP Financial Measures
Reconciliation of GAAP to Non-GAAP Financial Measures ($ in Millions, Unaudited) Three Months Ended June 30, 2015 Integrated Global Corporate Financial Financial and Other Consolidated Solutions Solutions Processing and services revenue $ 968.9 $ 618.9 $ (1.0 ) $ 1,586.8 Operating income (loss) $ 32
Slide 24: Reconciliation of GAAP to Non-GAAP Financial Measures
Reconciliation of GAAP to Non-GAAP Financial Measures ($ in Millions, Unaudited) Six Months Ended June 30, 2015 Integrated Global Corporate Financial Financial and Other Consolidated Solutions Solutions Processing and services revenue $ 1,937.8 $ 1,205.8 $ (2.0 ) $ 3,141.6 Operating income (loss) $
Slide 25: Constant Currency Revenue Growth Calculation
Constant Currency Revenue Growth Calculation Second Quarter ($ in millions) 2015 2014 Constant Reported Constant Reported FX Currency Revenue Growth Integrated Financial Solutions $ 968.9 $ 0.5 $ 969.4 $ 968.7 0.1% Global Financial Solutions 618.9 62.9 681.8 630.6 8.1% Corporate (1.0) (0.2) (1.2) (0
Slide 26: Constant Currency Revenue Growth Calculation
Constant Currency Revenue Growth Calculation Six Months ($ in millions) 2015 2014 Constant Reported Constant Reported FX Currency Revenue Growth Integrated Financial Solutions $ 1,937.8 $ 1.3 $ 1,939.1 $ 1,914.9 1.3% Global Financial Solutions 1,205.8 107.8 1,313.6 1,214.1 8.2% Corporate (2.0) (0.3)
Fidelity National Information Services — Q2 2015 Earnings Presentation on 6ix