Fidelity National Information Services, Inc. · NYSE:FIS
Fidelity National Information Services — Investor Day (2024)
133 slides from Fidelity National Information Services's investor day presentation, 2024
Slide 1: Unlocking Financial Technology To The World
Unlocking Financial Technology To The World
Slide 2: Opening Remarks
1 Opening Remarks George Mihalos SVP, Head of Investor Relations FIS Investor Day 2024
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 futur
Slide 4: Strategic Vision
2 Strategic Vision Stephanie Ferris CEO and President FIS Investor Day 2024
Slide 5: Agenda
AGENDA 1 2 3 4 Opening Remarks Strategic Vision Technology Segment Strategy: Banking George Mihalos Stephanie Ferris Firdaus Bhathena John Durrant 5 6 7 8 Segment Strategy: Product & Innovation Financial Overview Executive Q&A Capital Markets Stephanie Ferris & Nasser Khodri Tarun Bhatnagar James Ke
Slide 6: FIS: Leadership At Scale With Marquee Set Of Clients
FIS: Leadership At Scale With Marquee Set Of Clients $ 9.8B 14K+ 95 % $ 16T Revenues Clients of the World’s Financial Assets Leading Banks on Platforms 2023 Metrics FIS Investor Day 2024
Slide 7: FIS: Scaled Global Presence
FIS: Scaled Global Presence Global Presence International Revenue Sales and Distribution Technology ~150 $2B 1,500 25K Countries with Across Six Sales and Relationship Technologists Clients & Prospects Continents Managers Globally 2023 Metrics FIS Investor Day 2024
Slide 8: Decisive Actions To Overcome Challenges And Improve Outcomes
Decisive Actions To Overcome Challenges And Improve Outcomes CHALLENGES OUR RESPONSE OUTCOMES +110bps +100bps Commercial Excellence Lost Focus on • Focused on higher-growth higher-margin opportunities Banking • Improved sales productivity Increase in Sales Margin Recurring Revenue Growth 2022 - 2023
Slide 9: Increasing Target Cash Savings And Capital Return To Shareholders
Increasing Target Cash Savings And Capital Return To Shareholders FINANCIAL CASH CAPITAL OUTLOOK SAVINGS RETURN BROAD BASED RAISING OpEx savings RAISING 2024 share outperformance of quarterly target to $790M through 2026 repurchase target to $4B financial commitments DECREASING capital TARGETING cap
Slide 10: Our Vision
• Best-of-breed financial solutions Our for FIs, corporates, fintechs and developers Vision • Flexible, consumable products Unlocking financial that cut across verticals and technology to the world. geographies • Always resilient, always secure, always on FIS Investor Day 2024
Slide 11: Unlocking Financial Technology To The World: A Multi-year Strategy
Unlocking Financial Technology To The World: A Multi-year Strategy Leveraging Our Strong Executing To Deliver Allocating Capital Foundation Profitable Growth With Discipline • Unlocking enterprise-wide • Shifting organization focus to high- • Improving cost base and prioritizing capabilities to serv
Slide 12: Today's Key Messages
TODAY’S KEY MESSAGES Our focused We are uniquely The blurring of strategy and positioned to lead boundaries in execution deliver in fast-growing financial services strong results to markets. fuels our growth. shareholders. FIS Investor Day 2024
Slide 13: Today's Key Messages
TODAY’S KEY MESSAGES We are uniquely Our focused The blurring of strategy and positioned to lead boundaries in execution deliver in fast-growing financial services strong results to markets. fuels our growth. shareholders. FIS Investor Day 2024
Slide 14: Unlocking Financial Technology Across The Money Lifecycle
Unlocking Financial Technology To The World Across The Money Lifecycle MONEY MONEY MONEY AT REST IN MOTION AT WORK Core Banking Payments Wealth & Retirement Digital Banking Treasury & Risk Trading & Asset Services Commercial Lending FIS Investor Day 2024
Slide 15: We Are A Global Leader In Large And Growing Markets
We Are A Global Leader In Large And Growing Markets $ 9.8B 2023 Revenue 80% Recurring Revenue 4% Adj. Revenue CAGR 40.4% 2023 Adj. EBITDA 2021 - 2023 Margin MONEY AT REST MONEY IN MOTION MONEY AT WORK TAM $ 15B $ 83B $ 95B $ 193B Revenue $2.8B $4.3B $2.7B $9.8B 29% 44% 27% 100% Revenue Mix Note: Rev
Slide 16: We Serve Our Clients Through Two Leading Businesses
We Serve Our Clients Through Two Leading Businesses Revenue Adj. Revenue % Recurring Revenue Adj. EBITDA Margin $ 9.5B (1) 4% 80% 40.4% BANKING $ 6.7B 3% 83% 43.5% CAPITAL MARKETS $ 2.8B 6% 72% 50.3% Note: Revenue, Recurring Revenue % and Adj. EBITDA Margin represent 2023 figures; Adj. Revenue % 202
Slide 17: Today's Key Messages
TODAY’S KEY MESSAGES Our focused We are uniquely The blurring of strategy and positioned to lead boundaries in execution deliver in fast-growing financial services strong results to markets. fuels our growth. shareholders. FIS Investor Day 2024
Slide 18: Traditional Boundaries Are Blurring Across The Money Lifecycle
Traditional Boundaries Are Blurring Across The Money Lifecycle INDUSTRY TRENDS CLIENT NEEDS Full suite of best-of-breed solutions FIs expanding across Corporates entering the across money lifecycle with: their money lifecycle money lifecycle • Flexible as-a-service consumption models • Modern end-to
Slide 19: We Are Uniquely Positioned To Serve Our Clients
We Are Uniquely Positioned To Serve Our Clients BANKING CAPITAL MARKETS >70 % Large U.S. bank clients served by both Banking and Capital Markets $400M Cross-sell Opportunity Globally Scaled Technology Global Distribution with a Marquee Set of Clients Best-of-breed Solution Suite FIS Investor
Slide 20: Our Scale And Capabilities Allow Us To Fully Meet Our Clients' Needs
Our Scale And Capabilities Allow Us To Fully Meet Our Clients’ Needs Core and Large Financial Institutions Digital MONEY AT REST Banking Regional and Community Banks Card Issuing – Debit, Credit, Prepaid Acquiring(1) Payments MONEY Money Rails IN MOTION Network Treasury and Risk Commercial Lending M
Slide 21: Our Integrated Solutions Help A Global Bank Grow And Expand
Our Integrated Solutions Help A Global Bank Grow And Expand Multinational retail, commercial and investment bank with >$250B assets Client since: 1988 Total FIS services: >100 MONEY AT REST MONEY IN MOTION MONEY AT WORK 2000 Core Banking and Digital Debit Processing Wealth Management KEY PRODUCTS &
Slide 22: Today's Key Messages
TODAY’S KEY MESSAGES We are uniquely The blurring of Our focused positioned to lead boundaries in strategy and in fast-growing financial services execution deliver markets. fuels our growth. strong results to shareholders. FIS Investor Day 2024
Slide 23: Accelerating Innovation On A Strong Foundation
Accelerating Innovation On A Strong Foundation WHERE WE’VE BEEN: Scaled Technology Provider WHERE Best-of-breed on WE ARE: Cloud Foundation WHERE WE’RE GOING: Platform for Innovation FIS Investor Day 2024
Slide 24: Focused Strategy And Execution Have Already Shifted Performance
Focused Strategy And Execution Have Already Shifted Performance BUILDING BLOCKS OF OUR STRATEGY OUTCOMES ACHIEVED • Drive operational excellence • Modernize our industry-leading cores +19%Increase In 50% 83% Total revenue from Digital Revenue payments In LFI(1) BANKING • Scale our best-in-class digi
Slide 25: Disciplined Capital Allocation Focused On Long-term Value Creation
Disciplined Capital Allocation Focused On Long-term Value Creation ORGANIC RETURN OF INVESTMENTS CAPITAL M&A • Focusing on higher-growth, • Dividends targeting 35% payout • Tuck-in acquisitions higher-margin solutions of adjusted net income complementing organic excluding Worldpay EMI investments •
Slide 26: We Are Uniquely Positioned To Capitalize On Growth Opportunities
We Are Uniquely Positioned To Capitalize On Growth Opportunities 1 We are: 2 We have: 3 We deliver: Scaled Global Broad Suite Of Technology Distribution & Best-of-breed Leader Marquee Set Solutions Of Clients ALLOWING US TO DRIVE DOUBLE-DIGIT TOTAL RETURN FIS Investor Day 2024
Slide 27: Technology
3 Technology Firdaus Bhathena Chief Technology Officer FIS Investor Day 2024
Slide 28: Today's Key Messages
TODAY’S KEY MESSAGES We deliver We build We are investing highly secure industry-leading in next-gen and resilient solutions and technology and infrastructure. experiences. platforms. Clients trust us Clients depend on us Clients expect us to lead to run their business. to compete and grow. them int
Slide 29: Our Technology Powers Global Finance Across The Money Lifecycle
Our Technology Powers Global Finance Across The Money Lifecycle Industry-leading technology… …operating at global scale 25K technologists 60B+ T MO transactions processed ES N E FIS Modern Banking Platform FIS #1 annually on our technology R Y AT AT 1.5B EY WO MON API calls per month RK 90%+ workloa
Slide 30: Accelerating Innovation On A Strong Foundation
Accelerating Innovation On A Strong Foundation WHERE Scaled • First to cloud, highly secure, resilient, WE’VE BEEN: Technology Provider scalable infrastructure • Componentized products and seamless WHERE Best-of-breed on experiences to enable best-of-breed WE ARE: Cloud Foundation solutions, on clou
Slide 31: Modern Technology Architecture Delivers Speed, Agility and Innovation
Modern Technology Architecture Delivers Speed, Agility and Innovation Banks Corporates Fintechs ISVs …TO ENABLE easy integration with UNIFIED API-ENABLED ACCESS best-of-breed solutions Core Digital Wealth & Treasury Trading Lending Third- Banking Banking Payments Retirement and Risk and Asset Tech p
Slide 32: We Continue To Strengthen Our Secure And Resilient Infrastructure
We Continue To Strengthen Our Secure And Resilient Infrastructure Advancing our state-of-the-art cybersecurity posture in a rapidly evolving environment 20B+ 82% x9 Increased investment in Average Vulnerabilities cyber resilience remediation proactively malicious requests time remediated AI-enabled
Slide 33: We Remain Ahead Of The Curve In Adopting Cloud
We Remain Ahead Of The Curve In Adopting Cloud Migrated 90%+ of workloads to cloud… …and accelerating disciplined public cloud adoption 100% 100% Prioritize and assess Modernize with Govern, operate and 30% for cloud readiness “pathway to cloud” optimize on cloud 52% 61% Accelerated pathway to publi
Slide 34: Unlocking Significant Value With Cloud
Unlocking Significant Value With Cloud Select Examples ENABLING SAAS ACCELERATING INNOVATION NEW MARKETS RISK MANAGEMENT TRADE COMPLIANCE NEXT-GEN BANKING (Insurance Risk Suite) (Compliance Suite) (Modern Banking Platform) ~275% ML $ 3.6B Revenue growth(1) Machine learning APAC TAM opportunity capab
Slide 35: Building Componentized Composable Products With Intuitive UX
Building Componentized Composable Products With Intuitive UX Enable seamless user journeys Build Modern Modernize Products and Enable best-of-breed solution Cores bundles Experiences In-Place Extend Increase cross-sell Client-centric Product Design and Delivery Excellence Enable new vertical expansi
Slide 36: Efficient Capital Deployment To Accelerate High-growth Products
Efficient Capital Deployment To Accelerate High-growth Products Technology Capital Allocation, % of total capital $1,050M $800M HIGH-GROWTH PRODUCTS 34% +10ppts increase in growth products’ 44% share of technology capital REMAINING 66% PORTFOLIO 56% 2022 2024 FIS Investor Day 2024
Slide 37: Driving Growth With Modern Products And Experiences
Driving Growth With Modern Products And Experiences QUANTUM DIGITAL ONE MODERN BANKING Modern, Digital Treasury Software Sleek and Intuitive Digital Banking PLATFORM Next-Gen Core Unified API-enabled Access Layer MBP Core Deposits and Lending Retail Deposits Retail Lending Commercial Core Core Depos
Slide 38: Modernize-in-place: Componentizing Cores Enables Best-of-breed Solutions
Modernize-in-place: Componentizing Cores Enables Best-of-breed Solutions ILLUSTRATIVE Code Unified Connect/ API-enabled Banking Platform Access Layer Services Loyalty Loyalty Item Item Processing Processing Fraud Fraud & Risk Risk Fraud Fraud & Risk Risk FIS AND THIRD-PARTY Enterprise Enterprise Ale
Slide 39: Modernize-in-place: Componentizing Cores Enables Best-of-breed Solutions
Modernize-in-place: Componentizing Cores Enables Best-of-breed Solutions ILLUSTRATIVE Code Unified Connect/ API-enabled Banking Platform Access Layer Services Enabling flexible Collateral Loyalty Loyalty Item Item Processing Processing Fraud Fraud & Risk Risk Fraud Fraud & Risk Risk consumption thro
Slide 40: Modernize-in-place: Componentizing Cores Enables Best-of-breed Solutions
Modernize-in-place: Componentizing Cores Enables Best-of-breed Solutions ILLUSTRATIVE Code Unified Connect/ API-enabled Banking Platform Access Layer Services Enabling Enabling flexible flexible Collateral Loyalty Loyalty Item Item Fraud Processing Processing & Risk Fraud Fraud & Risk Risk Fraud Fra
Slide 41: Modernize-in-place: Componentizing Cores Enables Best-of-breed Solutions
Modernize-in-place: Componentizing Cores Enables Best-of-breed Solutions ILLUSTRATIVE Code Unified Connect/ API-enabled Banking Platform Access Layer Services Enabling Enabling flexible flexible Fraud Collateral Loyalty Loyalty & Risk Item Item Fraud Processing Processing & Risk Fraud Fraud & Risk R
Slide 42: Modernize-in-place: Componentizing Cores Enables Best-of-breed Solutions
Modernize-in-place: Componentizing Cores Enables Best-of-breed Solutions ILLUSTRATIVE Code Unified Connect/ API-enabled Banking Platform Access Layer Services Enabling Enabling flexible flexible Flexible consumption consumption Fraud Collateral Loyalty Loyalty & Risk Item Item Fraud Processing Proce
Slide 43: We Are Accelerating The Product Flywheel
We Are Accelerating The Product Flywheel Through Client-Centric Product Design And Delivery Excellence STREAMLINE CLIENT IMPLEMENTATIONS ACCELERATE Configurable “product-in-a-box” END-TO-END deployments enabled by AI and PRODUCT DELIVERY automation Business + engineering + CX teams aligned to common
Slide 44: Our Results: Transforming Delivery Of High-Growth Products
Our Results: Transforming Delivery Of High-Growth Products HIGHER FASTER CLIENT +25 ppts DELIVERY +20-40% SATISFACTION Velocity: features delivered per “sprint” Client NPS scores 2022 2023 2022 2023 IMPROVED BETTER +15% QUALITY PREDICTABILITY 70% Defects proactively detected Features delivered vs an
Slide 45: FIS Platform Enables Access To FIS Or Third-Party Products
FIS Platform Enables Access To FIS Or Third-Party Products UX LAYER DIY API build | White-labelled Embedded Apps PROGRAM MANAGEMENT Compliance CORE PLATFORM SERVICES PLATFORM MARKETPLACE Risk FIS PLATFORM Account Opening | Money Movement | Cards | Fraud Third-Party Partnerships Support Servicing Ana
Slide 46: Our Modern Stack Enables Responsible Adoption And Scaling Of AI
Our Modern Stack Enables Responsible Adoption And Scaling Of AI Our AI principles Scaling AI/ML use cases across four vectors – select examples(1) NEW REVENUE OPERATIONAL CLOUD FIRST. STREAMS EFFICIENCY >200PB data in Cloud Fraud prevention offering Improved developer mitigated fraud in productivity
Slide 47: We Are Uniquely Positioned To Capitalize On Growth Opportunities
We Are Uniquely Positioned To Capitalize On Growth Opportunities 1 Scaled Technology Leader 2 Global Distribution & Marquee Set 3 Broad Suite Of Best-of-breed Solutions Of Clients Highly secure and Clients depend on us Industry-leading resilient cloud to grow and lead them products across the infras
Slide 48: Segment Strategy: Banking Solutions
SEGMENT STRATEGY: Banking 4 Solutions John Durrant President, Banking Solutions FIS Investor Day 2024
Slide 49: Today's Key Messages
TODAY’S KEY MESSAGES Our growth strategy focuses We are a leading on operational Clear path to provider of excellence, core deliver sustainable financial and digital high-quality growth technology. innovation, and payments. FIS Investor Day 2024
Slide 50: Today's Key Messages
TODAY’S KEY MESSAGES Our growth We are a leading strategy focuses on operational Clear path to provider of excellence, core deliver sustainable financial and digital high-quality growth technology. innovation, and payments. FIS Investor Day 2024
Slide 51: Our Technology Underpins The World's Financial System
Our Technology Underpins The World’s Financial System MONEY AT REST MONEY IN MOTION MONEY AT WORK Core & Digital Payments Wealth & Core platforms and Card, money rails, Retirement digital solutions network, fraud, Ledgering and loyalty and AR/AP recordkeeping software 58% 17B+ $8T of large and regio
Slide 52: Our Business Operates At Scale In Growing Markets
Our Business Operates At Scale In Growing Markets BANKING SOLUTIONS $ 6.7B 2023 Revenue 83% Recurring Revenue 3% Adj. Revenue CAGR 43.5% 2023 Adj. EBITDA 2021 - 2023 Margin MONEY AT REST MONEY IN MOTION MONEY AT WORK BANKING SOLUTIONS Wealth & TOTAL Core & Digital Payments Retirement BANKING Revenue
Slide 53: We Provide Mission-Critical Technology To Our Clients
We Provide Mission-Critical Technology To Our Clients BANKS FINANCIAL SERVICES CORPORATES INSTITUTIONS & OTHER +3,000 +4,900 +1,800 Large, Regional and Financial Services Fintechs, Retailers, Community Banks Companies and Governments, Healthcare Credit Unions etc. 2023 Metrics FIS Investor Day 2024
Slide 54: We Serve Clients Across All Their Financial Technology Needs
We Serve Clients Across All Their Financial Technology Needs Regional and Financial Community Credit Services Products Large Banks Banks Unions Institutions Corporates CORES CORE & DIGITAL DIGITAL DEBIT PROCESSING CREDIT PROCESSING NETWORK (NYCE) PAYMENTS MONEY RAILS (ACH, WIRES, ETC.) AP/AR FRAUD L
Slide 55: We Are On Track to Return to High-Quality Growth
We Are On Track to Return to High-Quality Growth TARGET ~$6.9 Banking Solutions Revenue ($B) $6.6 $6.7 ~3.3% Adjusted Revenue Growth 1.6% 4.9% 2022 2023 2024E Adjusted Recurring Revenue Growth 5.8% 4.1% GROWTH Core Accounts(1) 3% 3% RATES Card Transactions(2) 5% 5% Adj. EBITDA Margin 44% 42/45% H1 H
Slide 56: Today's Key Messages
TODAY’S KEY MESSAGES Our growth strategy focuses We are a leading on operational Clear path to provider of excellence, core deliver sustainable financial high-quality growth technology. and digital innovation, and payments. FIS Investor Day 2024
Slide 57: Our Banking Growth Strategy
Unlocking Financial Technology To The World: Our Banking Growth Strategy Operational Core & Payments Excellence Digital Continuing focus on Build on our proven Increase payments client experience strengths with next- growth by improving and sales excellence gen cores and digital sales execution and
Slide 58: Continuing To Focus On Client Experience
Continuing To Focus On Client Experience INCREASED DEDICATED PRODUCT CLIENT COVERAGE(1) IMPLEMENTATIONS COMPLETED(2) • Launched new self-service tools +54% +26% • Dedicated support for core clients • Investing in people, process and technology to accelerate implementations Q1-2023 Q1-2024 2021 2023
Slide 59: Sales Will Be Bolstered By Continued Improvement In The Sales Model
Sales Will Be Bolstered By Continued Improvement In The Sales Model And Expanded Distribution INCREASED SALESFORCE INCREASED FOCUS PRODUCTIVITY(1) ON SALES MARGIN(2) $300M opportunity from +110 continuing to deepen Capital Markets +15% bps client relationships with Banking Solutions products Broaden
Slide 60: We Are Building On Our Industry-Leading Core Banking Technology
We Are Building On Our Industry-Leading Core Banking Technology MONEY AT REST Horizon End-to-end integrated >350 technology and services for community bank community banks clients on Horizon IBS Best-in-class commercial 58% Consistent wins in banking banking capabilities for share(1) consolidations
Slide 61: We Are Scaling Our Leading Digital Solutions
We Are Scaling Our Leading Digital Solutions MONEY AT REST DIGITAL REVENUE – LARGE BANKS Digital One Best-of-breed Solution 50% Large and Regional Banks Share +19% 30+ Large Bank Clients $ 1T Total Deposits Managed 2021 2022 2023 What’s Next: Bringing Our Best-of-breed Digital Solutions into Regiona
Slide 62: We Have A Scaled Payments Business That Will Fuel Further Growth
We Have A Scaled Payments Business That Will Fuel Further Growth MONEY IN MOTION SUER PROCESSING IS Scaled credit and debit issuer processing that wins in our core and beyond, processing $900B Debit Credit Processing Processing NE Industry-leading payments services TW processing 3.5B items annually
Slide 63: We Are Growing In Issuer Processing With Core And Non-Core Clients
We Are Growing In Issuer Processing With Core And Non-Core Clients Through Sales Focus MONEY IN MOTION ISSUER PROCESSING VOLUME Credit and Debit, $B Payments One Best-of-breed Solution >$500M +5% additional opportunity from switching FIS core clients to FIS processing 49 core clients switched to FIS
Slide 64: We Will Continue To Grow Our Premium Payback Network
We Will Continue To Grow Our Premium Payback Network Through Our Partnership With Worldpay MONEY IN MOTION Premier Financial PREMIUM Leading Merchant Institution Partners PAYBACK Partners Points Redeemed (B) 24 Retailers 55M 21 Grocery Stores 17 cardholders eligible for Premium Payback Pharmacies 20
Slide 65: Market Dynamics Driving Increased Demand For NYCE
Market Dynamics Driving Increased Demand For NYCE MONEY IN MOTION NYCE TRANSACTION VOLUME Number of transactions NYCE Best-of-breed Solution +8% >40 issuing banks and credit unions added to NYCE in the last 12 months 18 issuing banks in late-stage discussions to adopt NYCE > 100M adding NYCE to FIS
Slide 66: Today's Key Messages
TODAY’S KEY MESSAGES Our growth strategy focuses We are a leading Clear path to on operational provider of deliver sustainable excellence, core financial technology. and digital high-quality innovation, and growth payments. FIS Investor Day 2024
Slide 67: We Will Deliver Predictable And Sustainable Revenue Growth Of 3.5 - 4.5%
We Will Deliver Predictable And Sustainable Revenue Growth Of 3.5 - 4.5% By 2025 / 2026 UNDERLYING GROWTH CORE AND DIGITAL PAYMENTS NON-RECURRING • Stable, recurring revenue • Industry-leading cores • Increased sales focus on • Re-focusing on higher-quality • Account and transaction • Modernized ahe
Slide 68: We Are Uniquely Positioned To Capitalize On Growth Opportunities
We Are Uniquely Positioned To Capitalize On Growth Opportunities 1 Scaled Technology Leader 2 Global Distribution & Marquee Set 3 Broad Suite Of Best-of-breed Solutions Of Clients Ahead of competitors Leveraging leadership Focusing on faster in modernizing tech, in core to expand growing digital and
Slide 69: Segment Strategy: Capital Markets Solutions
SEGMENT STRATEGY: Capital Markets 5 Solutions Nasser Khodri President, Capital Markets Solutions FIS Investor Day 2024
Slide 70: Today's Key Messages
TODAY’S KEY MESSAGES Our innovative We are uniquely Our focused solutions drive positioned to lead strategy and growth in in fast-growing execution delivers traditional and markets. strong results. adjacent verticals. FIS Investor Day 2024
Slide 71: Today's Key Messages
TODAY’S KEY MESSAGES We are uniquely Our innovative Our focused solutions drive positioned to lead strategy and growth in in fast-growing execution delivers traditional and markets. strong results. adjacent verticals. FIS Investor Day 2024
Slide 72: We Operate Across The Money Lifecycle Through Three Solution Ecosystems
We Operate Across The Money Lifecycle Through Three Solution Ecosystems CAPITAL MARKETS $ 2.8B 2023 Revenue 72% Recurring Revenue 6% Adj. Revenue CAGR 50.3% 2023 Adj. EBITDA 2021 - 2023 Margin MONEY IN MOTION MONEY AT WORK CAPITAL MARKETS Treasury Commercial Trading & TOTAL & Risk Lending Asset Serv
Slide 73: We Have An Industry-Leading Position With A Global Client Base
We Have An Industry-Leading Position With A Global Client Base MONEY IN MOTION MONEY AT WORK 70% $50T Top 100 AUM of Traditional Insurance Firms Asset Managers $4T 1,250+ AUM of Private Treasury Clients Equity Institutions 1,500+ 17 of 25 Top Loan Syndication Risk Clients Agents Served 6,000+ client
Slide 74: FIS Treasury And Risk Ecosystem
FIS Treasury And Risk Ecosystem Enabling Strategic Growth, Protecting Client Assets And Mitigating Risk With RegTech MONEY IN MOTION Banks, TREASURY Corporates KEY TRENDS and FIs Enterprise SaaS Risk and RegTech: Protecting against risk and Treasury Treasury complying with regulations allowing our c
Slide 75: FIS Commercial Lending Ecosystem
FIS Commercial Lending Ecosystem Innovating And Digitization Lending And Leasing Capabilities For Corporates And OEMs MONEY AT WORK IN AL LEND G TECH CI NO KEY TRENDS Banks, ER L M O Corporates M GY CO and FIs Loan and Loan Digitization: Digitization of lending and credit data Credit Trading Syndica
Slide 76: FIS Trading And Asset Services Ecosystem
FIS Trading And Asset Services Ecosystem Innovating And Automating Transaction And Data Flows Across The Capital Markets Industry MONEY AT WORK SET MANAGEMENT AS Buy Side KEY TRENDS Traditional Asset Management Transfer Alternatives Outsourcing: Continued movement towards outsourcing AX Agency and C
Slide 77: Our Ability To Serve Global Clients Is Unparalleled
Our Ability To Serve Global Clients Is Unparalleled WHY ARE WE AHEAD: RISK AND LENDING Integrated platforms with Global Footprint SELL SIDE PROVIDER plug-and-play solutions MONOLINE TREASURY MGMT. PROVIDER BUYSIDE PROVIDER Scale that drives EXCHANGE AND market-leading efficiency DATA PROVIDER LENDIN
Slide 78: Today's Key Messages
TODAY’S KEY MESSAGES Our innovative We are uniquely Our focused positioned to lead solutions drive strategy and in fast-growing growth in execution delivers markets. traditional and strong results. adjacent verticals. FIS Investor Day 2024
Slide 79: Clients Across Verticals Value Our Ability To Serve Their Needs
Clients Across Verticals Value Our Ability To Serve Their Needs Across The Money Lifecycle TRADITIONAL VERTICALS ADJACENT VERTICALS Asset Asset Banks & Broker / Insur. Auto & Corps. SOLUTION ECOSYSTEM Mgrs. Svcrs. Lenders Dealers Firms Equip. MONEY IN MOTION Risk Management TREASURY AND RISK Treasur
Slide 80: We Have Expanded Substantially Beyond Our Traditional Verticals
We Have Expanded Substantially Beyond Our Traditional Verticals Share of revenue per vertical category, ~% of total revenue ADJACENT CONSUMING SOLUTIONS VERTICALS (Corporates, Insurance, ~30% SUCH AS: Automotive, etc.) Insurance Risk Management Treasury and Payments TRADITIONAL Management VERTICALS
Slide 81: We Are Driving Growth Through Cross-Sell
We Are Driving Growth Through Cross-Sell CLIENT NEEDS ~30 % Best-of-breed Products Comprehensive Set of Solutions of our clients take multiple Innovation That Drives Growth FIS solutions Global Scale and Service Regulatory and Compliance Expertise Integrated Platforms and Ecosystems ~6 % growth in r
Slide 82: Innovation Targeted In High-Growth Areas
Innovation Targeted In High-Growth Areas MONEY IN MOTION MONEY AT WORK TREASURY & RISK COMMERCIAL LENDING TRADING & ASSET SERVICES TREASURY & PAYMENTS AUTO & EQUIPMENT ALTERNATIVES FINANCE $11B TAM $12B TAM $13B TAM 14% 15% 10% 11% 13% 10% TAM Growth ’20–’23 TAM Growth ’20–’23 TAM Growth ’20–’23 Rev
Slide 83: Today's Key Messages
TODAY’S KEY MESSAGES Our innovative We are uniquely Our focused solutions drive positioned to lead strategy and growth in in fast-growing markets. traditional and execution delivers adjacent verticals. strong results. FIS Investor Day 2024
Slide 84: We Have A Clear Path Forward To Sustained Long-Term Growth
We Have A Clear Path Forward To Sustained Long-Term Growth 2020 2023 / 2024 2025 / 2026 REVENUE GROWTH 2.6% 5.2% / 6.5% - 7.0% 7.5% - 8.5% ADJ. EBITDA MARGIN 48% ~50% 50%+ RECURRING REVENUE 68% ~72% ~75% DRIVERS • Modernized and componentized • Expanding TAM through new • Adopting next-gen technolog
Slide 85: Our Growth Objectives
Our Growth Objectives TRADITIONAL VERTICALS ADJACENT VERTICALS TUCK-IN ACQUISITIONS Expanding across tiers Expanding into adjacent verticals Enhancing growth • Comprehensive modernized solution set Align to our M&A playbook • Global distribution • Innovative capabilities • Leading customer service C
Slide 86: We Are Uniquely Positioned To Capitalize On Growth Opportunities
We Are Uniquely Positioned To Capitalize On Growth Opportunities 1 Scaled Technology Leader 2 Global Distribution & Marquee Set 3 Broad Suite Of Best-of-breed Solutions Of Clients Platform with market- Well-positioned to Innovative solutions leading componentized, capture industry trends drive growt
Slide 87: Product & Innovation
6 Product & Innovation Tarun Bhatnagar President, Platform and Enterprise Products FIS Investor Day 2024
Slide 88: Helping banks grow and evolve
Helping Unleashing Unlocking banks grow new value financial and evolve from data technology to the world FIS Investor Day 2024
Slide 89: Helping banks grow and evolve
Helping Unleashing Unlocking banks grow new value financial and evolve from data technology to the world FIS Investor Day 2024
Slide 90: FIS Investor Day 2024
Kis FIS Investor Day 2024
Slide 91: Helping banks grow and evolve
Helping Unleashing Unlocking banks grow new value financial and evolve from data technology to the world FIS Investor Day 2024
Slide 92: FIS Investor Day 2024
FIS Investor Day 2024
Slide 93: FIS Investor Day 2024
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Slide 94: Helping banks grow and evolve
Helping Unleashing Unlocking banks grow new value financial and evolve from data technology to the world FIS Investor Day 2024
Slide 95: For creators, by creators
[at-el-io] For creators, by creators FIS Investor Day 2024
Slide 96: One of the nation's largest bank-based financial services companies
$188.3 $6.4 billion billion ASSETS REVENUE (as of 12/31/23) (FY 2023) One of the nation’s largest bank-based financial services companies. 40,000+ ~17,000 Headquartered in Cleveland, Ohio. ATMS KeyBank and FULL-TIME Allpoint ATMs EQUIVALENT (FTE) nationwide EMPLOYEES FIS Investor Day 2024
Slide 97: Grow and evolve, Unleashing, Unlocking
Unlocking Grow and Unleashing financial evolve new value technology to the world FIS Investor Day 2024
Slide 98: Second largest private student loan provider in the US
Second largest private student loan provider in the US. Applications decisions are instant. Founded in 2014 and based in Wilmington, Delaware Offers education loans in all 50 states. FIS Investor Day 2024
Slide 99: Grow and evolve, Unleashing, Unlocking
Unlocking Grow and Unleashing financial evolve new value technology to the world FIS Investor Day 2024
Slide 100: Premier provider of software and services within the healthcare industry
Premier provider of software and services within the healthcare industry Integrated solutions optimizing engagement across patient, provider, Headquartered in White Plains, NY operational and financial workflows FIS Investor Day 2024
Slide 101: Grow and evolve, Unleashing, Unlocking
Unlocking Grow and Unleashing financial evolve new value technology to the world FIS Investor Day 2024
Slide 102: Financial Overview
7 Overview Financial James Kehoe Chief Financial Officer FIS Investor Day 2024
Slide 103: Today's Key Messages
TODAY’S KEY MESSAGES 2023: Setting 2024: Building 2024+: Compelling a New Course Momentum Investment Thesis Outperformed Financial Accelerating Accelerating Revenue and Commitments Revenue Growth EPS Growth Worldpay Transaction Expanding Margin Disciplined Capital Return Resumed Share Increasing Ret
Slide 104: Today's Key Messages
TODAY’S KEY MESSAGES 2023: Setting 2024: Building 2024+: Compelling a New Course Momentum Investment Thesis Outperformed Financial Accelerating Accelerating Revenue and Commitments Revenue Growth EPS Growth Expanding Margin Disciplined Capital Return Worldpay Transaction Increasing Return Double-dig
Slide 105: Took Significant Action In 2023
Took Significant Action In 2023 PRIORITIZED HIGH-QUALITY • Sustained high-quality recurring revenue growth • Allocated resources to highest conviction growth opportunities +100bps Recurring Revenue Growth GROWTH • Innovated to deliver high-impact solutions 2023 vs CAGR 2017 - 2022 OPTIMIZED OPERATIO
Slide 106: Delivered On Our 2023 Commitments
Delivered On Our 2023 Commitments Track Record of Exceeding Expectations METRICS ($ millions) Q1 2023 Q2 2023 Q3 2023 Q4 2023 REVENUE $3,510 $3,746 $3,690 $3,733 Outlook $3,375 - $3,425 $3,675 - $3,725 $3,640 - $3,690 $3,654 - $3,704 ADJUSTED EBITDA $1,359 $1,551 $1,632 $1,613 Outlook $1,285 - $1,32
Slide 107: Delivered Commitments – Now 5 Straight Quarters
Delivered Commitments – Now 5 Straight Quarters Track Record of Exceeding Expectations METRICS FY 2023 OUTLOOK FY 2023 Q1 2024 Q1 2024 ($ millions) (Original) RESULTS OUTLOOK RESULTS REVENUE $14,200 - $14,450 $14,680 $2,430 - $2,455 $2,467 Adj. Revenue Growth (1)% - 1% 2% 2.5% - 3.5% 3.3% ADJUSTED E
Slide 108: Today's Key Messages
TODAY’S KEY MESSAGES 2023: Setting 2024: Building 2024+: Compelling a New Course Momentum Investment Thesis Outperformed Financial Accelerating Revenue and Commitments Accelerating EPS Growth Revenue Growth Worldpay Transaction Disciplined Capital Return Expanding Margin Resumed Share Double-digit R
Slide 109: Accelerating Growth And Expanding EBITDA Margin
Accelerating Growth And Expanding EBITDA Margin METRICS ($ millions, except per share data) FY 2024 FY 2024 GROWTH DRIVERS Banking REVENUE $10,100 - $10,150 • Acceleration in new sales Adjusted Revenue Growth 4.0% - 4.5% • Focus on high-growth areas Banking Solutions 3.0% - 3.5% Capital Markets Solu
Slide 110: Increasing 2024 Share Repurchases From $3.5B To $4.0B
Increasing 2024 Share Repurchases From $3.5B To $4.0B 2023 2024 TOTAL CAPITAL TO SHAREHOLDERS $1.7B $4.8B SHARE REPURCHASES $510M $4.0B LEVERAGE RATIO(1) 3.0x 2.8x INVESTMENT GRADE RATING BBB/Baa2 BBB/Baa2 INCREASING TOTAL CAPITAL RETURN FROM $1.7B IN 2023 TO $4.8B IN 2024. (1) Leverage ratio calcul
Slide 111: Today's Key Messages
TODAY’S KEY MESSAGES 2023: Setting 2024: Building 2024+: Compelling a New Course Momentum Investment Thesis Outperformed Financial Accelerating Commitments Revenue Growth Accelerating Revenue and EPS Growth Worldpay Transaction Expanding Margin Disciplined Capital Return Resumed Share Increasing Ret
Slide 112: Banking Growth Led By Organic Account / Transaction Growth
Banking Growth Led By Organic Account / Transaction Growth DRIVERS OF BANKING ADJ. REVENUE GROWTH 1.5% - 2.5% ~(1)% 3.5% - 4.5% ~3% Underlying Growth High-Growth Products / Acquisitions Non-Recurring Adjusted Revenue Growth 2025 / 2026 KEY GROWTH DRIVERS • Underlying Growth, • High-Growth Products,
Slide 113: Capital Markets Growth Backed By MSD TAM Growth
Capital Markets Growth Backed By MSD TAM Growth DRIVERS OF CAPITAL MARKETS ADJ. REVENUE GROWTH - 2.5% - 3.5% 7.5% - 8.5% ~5% Traditional Verticals Newer Verticals & Products / Non-Recurring Adjusted Revenue Growth 2025 / 2026 Acquisitions KEY GROWTH DRIVERS • Traditional Verticals, • Newer Verticals
Slide 114: Revenue Growth Underpinned By Attractive TAM Growth
Revenue Growth Underpinned By Attractive TAM Growth ADJ. REVENUE GROWTH TARGETS 2024 2025 / 2026 TAM Growth(1) BANKING 3% - 3.5% 3.5% - 4.5% 4% CAPITAL MARKETS 6.5% - 7% 7.5% - 8.5% 6% FIS(2) 4% - 4.5% 4.5% - 5.5% 4.5% KEY GROWTH DRIVERS • TAM / Underlying & Traditional • Commercial Execution • Tuck
Slide 115: Sustainable Margin Expansion Of 40 - 60 bps Annually
Sustainable Margin Expansion Of 40 - 60 bps Annually 165 - 175 bps ~(110) bps 80 - 90 bps ~(95) bps 40 - 60 bps 40.7% (annually) FY 2024E Margin Operating Leverage / Mix OpEx Savings Cost Increases Dis-Synergy Margin Expansion 2025 / 2026 MARGIN LEVERS • Segment Mix • OpEx Savings • Cost Increases:
Slide 116: Raising Target For OpEx Cost Savings
Raising Target For OpEx Cost Savings OPERATIONAL EXPENSE SAVINGS (Cumulative Impact $M) $790M Y-o-Y Benefit $625M $165M $190M $435M $280M $155M 2023 Achievement FY 2024 FY 2025 FY 2026 STRONG PIPELINE OF ADDITIONAL OPERATING EXPENSE SAVINGS EXITING 2024. FIS Investor Day 2024
Slide 117: Reiterating Our Disciplined Capital Allocation Priorities
Reiterating Our Disciplined Capital Allocation Priorities ROBUST CAPITAL GENERATION BALANCED CAPITAL ALLOCATION 90%+ Adj. FCF Conversion 35% Dividend Payout(1) 7% - 8% CapEx % of Revenue $1B Annual M&A Allocation ROIC and Growth Decision Criteria Highly Synergistic, DCF Based, High IRR 2.8x Gross Le
Slide 118: Below-The-Line Considerations
Below-The-Line Considerations ($ millions, except per share data) 2023 2024 2025 / 2026 D&A (Excl. Purchase Price Amort.) $1,023 ~$1,068 3% - 4% annually Net Interest Expense WAIR n/a ~2.9% 3.5% - 3.9% Effective Tax Rate 14% ~14.5% 12% - 13% Worldpay Adj. EMI (Incl. Lower Tax Rate) ~$390M ~$445M(1)
Slide 119: Durable Value Creation Drives Double-digit Total Return
Durable Value Creation Drives Double-digit Total Return Metrics 2024 2025 / 2026 Adj. Revenue Growth 4% - 4.5% 4.5% - 5.5% Adj. EBITDA Margin Expansion 20 - 40 bps 40 - 60 bps Adj. EPS Growth(1) 10% - 12% 9% - 12% Dividend Yield ~2% ~2% COMPELLING TOTAL RETURN 12% - 14% 11% - 14% KEY DRIVERS High qu
Slide 120: Key Takeaway: Compelling Investment Thesis
KEY TAKEAWAY: COMPELLING INVESTMENT THESIS Durable Durable Sustainable Balance Sheet Strong Free Recurring Strong FCF Double-digit Total Recurring Operating Strength and Cash Flow RevenueModel Generation Return Revenue Leverage Flexibility Generation Model ~80% 40 - 60 bps 2.8x 90%+ 11% - 14% Recurr
Slide 121: Executive Q&A
8 Executive Q&A Stephanie Ferris James Kehoe George Mihalos FIS Investor Day 2024
Slide 122: Unlocking Financial Technology To The World
Unlocking Financial Technology To The World
Slide 123: We Are Uniquely Positioned To Capitalize On Growth Opportunities
We Are Uniquely Positioned To Capitalize On Growth Opportunities 1 We are: 2 We have: 3 We deliver: Scaled Global Broad Suite Of Technology Distribution & Best-Of-Breed Leader Marquee Set Solutions Of Clients ALLOWING US TO DRIVE DOUBLE-DIGIT TOTAL RETURN FIS Investor Day 2024
Slide 124: Appendix
Appendix FIS Investor Day 2024
Slide 125: Normalized 2023 Adj. EPS Results
Normalized 2023 Adj. EPS Results FY 2023 Normalized Adj. EPS FY 2023 Adj. EPS (Con. Ops.) $3.37 Assuming transaction occurred 1/1/2023: EMI Contribution (Worldpay) $0.67 Capital Deployment $0.60 Normalized Tax Rate (WP Impact) $(0.14) Normalized FY 2023 Adj. EPS(1) $4.50 Estimated One Month Worldpay
Slide 126: Forward-Looking Statements
Forward-Looking Statements Today’s presentation and today’s webcast contain “forward-looking statements” within the meaning of the U.S. federal securities laws. Statements that are not historical facts, as well as other statements about our expectations, beliefs, intentions, or strategies regarding
Slide 127: Forward-Looking Statements
Forward-Looking Statements • the risk that the costs of restructuring transactions and other costs incurred in connection with the separation of the Worldpay business will exceed our estimates or otherwise adversely affect our business or operations; • the impact of the separation of Worldpay on our
Slide 128: FIS Use of Non-GAAP Financial Information
FIS Use of Non-GAAP Financial Information Generally Accepted Accounting Principles (GAAP) is the term used to refer to the standard framework of guidelines for financial accounting in the United States. GAAP includes the standards, conventions, and rules accountants follow in recording and summarizi
Slide 129: Reconciliation of GAAP to Non-GAAP Financials: Adjusted Revenue Growth CAGR
Reconciliation of GAAP to Non-GAAP Financials Adjusted Revenue Growth CAGR TWELVE MONTHS ENDED DECEMBER 31, 2023 BANKING SOLUTIONS CAPITAL MARKET SOLUTIONS CORPORATE AND OTHER TOTAL Revenue $6,733 $2,766 $322 $9,821 FX 45 61 (7) 99 Constant Currency Revenue $6,778 $2,827 $315 $9,920 TWELVE MONTHS EN
Slide 130: Reconciliation of GAAP to Non-GAAP Financials: Adjusted EBITDA
Reconciliation of GAAP to Non-GAAP Financials Adjusted EBITDA TWELVE MONTHS ENDED DECEMBER 31, 2023 Net earnings (loss) attributable to FIS $503 Provision (benefit) for income taxes 157 Interest expense, net 621 Other, net 186 Operating income (loss), as reported 1,467 Depreciation and amortization,
Slide 131: Notes to Unaudited – Supplemental GAAP to Non-GAAP Reconciliations
Notes to Unaudited – Supplemental GAAP to Non-GAAP Reconciliations (1) This item represents purchase price amortization expense on all intangible assets acquired through various Company acquisitions, including customer relationships, contract value, technology assets, trademarks and trade names. Thi
Slide 132: Reconciliation of GAAP to Non-GAAP Financials: Banking Adjusted Revenue Growth
Reconciliation of GAAP to Non-GAAP Financials Banking Adjusted Revenue Growth TWELVE MONTHS ENDED DECEMBER 31, 2023 DECEMBER 31, 2022 Banking Revenue $6,733 $6,624 FX - 51 Constant Currency Revenue $6,733 $6,675 TWELVE MONTHS ENDED DECEMBER 31, 2022 DECEMBER 31, 2021 Banking Revenue $6,624 $6,361 Ad
Slide 133: Reconciliation of GAAP to Non-GAAP Financials: Banking Adjusted Recurring Revenue Growth
Reconciliation of GAAP to Non-GAAP Financials Banking Adjusted Recurring Revenue Growth TWELVE MONTHS ENDED DECEMBER 31, 2023 DECEMBER 31, 2022 Banking Recurring Revenue $5,572 $5,353 FX (1) 34 Constant Currency Revenue $5,570 $5,387 TWELVE MONTHS ENDED DECEMBER 31, 2022 DECEMBER 31, 2021 Banking Re
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