Aci Worldwide, Inc. · NASDAQ:ACIW
Aci Worldwide — ACI Worldwide Investor Conferences December 2013
24 slides from Aci Worldwide's conference presentation, Dec 4, 2013
Slide 1: ACI Worldwide Investor Conferences
Exhibit 99.1 ACI Worldwide Investor Conferences December, 2013 December 2013
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 Founded in 1975, with low customer concentration ACI is a leading provider of • Subscription-based m
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 • Solutions help authenticate, authorize, In a highly fragmented acquire, clear and settle electronic co
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 Pro Forma FY 2012 Revenue by Customer Customer % of Total Customer #1 3.3% Customer #2 1.7% Customer #3 1.7% Customer #4 1.4% Customer #5 1.1% Customer #6 1.1% Customer #7 0.9% C
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 Sizing 1 • 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 Growth use 3 ACI products or less) Drivers • Lead payments transformation with Universal Pa
Slide 9: Financial Overview
Financial Overview December 2013
Slide 10: Bookings Growth Leads to Large Backlog
Bookings Growth Leads to Large Backlog Provides Revenue and Earnings Visibility • Renewal rates across ACI products >96% • >95% of our contracts are transaction-based SALES BOOKINGS HISTORICAL 60-MONTH BACKLOG ACI Sales, Net of ACI Term Term Extensions Extensions (SNET) 9 December 2013
Slide 11: ACI's Financial Summary 2009 – LTM 9/30/2013
ACI’s Financial Summary 2009 – LTM 9/30/2013 • LTM 9/30/13 revenue geographic mix: 70% Americas, 20% EMEA and 10% Asia Pacific NON-GAAP REVENUE ADJUSTED EBITDA Adjusted EBITDA % Margin 10 December 2013
Slide 12: >70% Recurring Revenue and Growing
>70% Recurring Revenue and Growing STRONG RECURRING REVENUE GROWTH Ongoing Services, Implementations, Increased Capacity Sales & Other Recurring Revenue: Hosting, Maintenance & License Fees (Paid Monthly, Quarterly or Annually) • Recurring revenue has increased in dollar amount and as a percent of r
Slide 13: Low Cap Ex and Strong Cash Flow
Low Cap Ex and Strong Cash Flow CAPITAL EXPENDITURES OPERATING FREE CASH FLOW ACI consistently generates strong free cash Low capital expenditures needed to flow maintain existing client base • NOLs starting to contribute and cash taxes much lower than GAAP • Current net leverage ratio 2.8x 12 Decem
Slide 14: 2013 Pro Forma Non-GAAP Revenue Bridge
2013 Pro Forma Non-GAAP Revenue Bridge • Normalized 2013 revenue mix: • 40% Hosting (SaaS), 24% Maintenance and 36% License & Services • 75% recurring revenue $122 $1035 $30 $883 OPAY ORCC Stub Stub 2013 Pro Forma *(millions) 2013 Represents low end of guidance Stub additions normalize for full year
Slide 15: 2013 Pro Forma Adjusted EBITDA Bridge
2013 Pro Forma Adjusted EBITDA Bridge $17 $5 $291 $12 $257 S1 OPAY ORCC Synergies Stub and Stub and synergies incremental synergies 2013 Pro Forma *(millions) 2013 Represents low end of guidance Stub additions normalize for full year contribution 14 December 2013
Slide 16: Financial Summary – Five Year Targets
Summary 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 15 December 2013
Slide 17: 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 ORCC and S1 and significant transaction related expenses, as we
Slide 18: Non-GAAP Financial Measures
Non-GAAP Financial Measures Non-GAAP Revenue (millions) 9 months LTM 2009 2010 2011 2012 Q4 2012 9-30-13 9-30-13 Revenue $ 406 $ 418 $ 465 $ 667 $ 224 $ 582 $ 806 Deferred revenue fair value adjustment - - - 22 4 4 8 Non-GAAP revenue $ 406 $ 418 $ 465 $ 689 $ 228 $ 586 $ 814 Adjusted EBITDA (million
Slide 19: Non-GAAP Financial Measures
Non-GAAP Financial Measures Reconciliation of Operating Free Cash Flow 9 months LTM (millions) 2009 2010 2011 2012 Q4 2012 9-30-13 9-30-13 Net cash provided (used) by operating activities $ 44 $ 81 $ 83 $ (9) $ 4 $ 87 $ 91 Net after-tax payments associated with employee-related actions 3 - - 6 - 5 5
Slide 20: 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 net after-tax payments associated with employee-related actions and facility closures, net after-tax payments associated with significant transaction relat
Slide 21: 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 22: 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 23: Forward-Looking Statements
Forward-Looking Statements All of the foregoing forward-looking statements are expressly qualified by the risk factors discussed in our filings with the Securities and Exchange Commission. Such factors include but are not limited to, increased competition, the performance of our strategic product, B
Slide 24: trusted globally
trusted globally
ACI Worldwide — ACI Worldwide Investor Conferences December 2013 on 6ix