Fidelity National Information Services, Inc. · NYSE:FIS
Fidelity National Information Services — Q3 2020 Earnings Presentation
24 slides from Fidelity National Information Services's earnings presentation, Oct 29, 2020
Slide 1: Third Quarter 2020 Earnings Call
THIRD QUARTER 2020 EARNINGS CALL October 29, 2020
Slide 2: Speakers
SPEAKERS BUSINESS & Gary Norcross STRATEGY Chairman, President and UPDATE Chief Executive Officer FINANCIAL Woody Woodall RESULTS Chief Financial Officer
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: Business & Strategy Update
BUSINESS & STRATEGY UPDATE
Slide 5: Organic Momentum Building for Accelerating Growth
MOMENTUM BUILDING FOR ACCELERATING GROWTH TOTAL REVENUE 13% SEGMENT PERFORMANCE (revenues and organic growth) ORGANIC 0% 3% -1% 1% $1.0B $1.5B $626M SYNERGIES ADJUSTED EBITDA MARGIN ADJUSTED EPS REVENUE EXPENSE SAVINGS +340 BPS 42.5% QOQ +30 BPS -1% YOY BACKLOG GROWTH RETURNING CASH TO SHAREHOLDERS
Slide 6: New Next: Advancing the Way the World Pays, Banks and Invests
ADVANCING THE WAY THAT THE WORLD PAYS, BANKS AND INVESTS Trusted partner using technology and expertise to deliver future-ready innovation, NEW NEXT Differentiated technology Tailored end-to-end Future-ready expertise focused developed through ongoing experiences connecting the on exceeding rapidly
Slide 7: Power of Tailored End-to-End Experiences
POWER OF TAILORED END-TO-END EXPERIENCES Bringing capabilities together from across our segments to serve our clients in ways PAY AND INVEST ISSUE AND PAY Pay Merchant now partnering with a Walgreens is now one of a valued Capital Markets client to growing number of merchants drive frictionless paym
Slide 8: Marquee Client Wins
MARQUEE CLIENT WINS Bringing the and the to our clients CAPITAL BANKING MERCHANT MARKETS Top 30 Bank Top 100 Retailer Global Tech Company Using Modern Banking Platform to Leveraging differentiated Powering multi-national power online banking omnichannel capabilities treasury and B2B payments Top 50
Slide 9: Financial Results
FINANCIAL RESULTS
Slide 10: Strong Financial Results
STRONG FINANCIAL RESULTS REVENUE ($ in millions) 3Q 2020 RESULTS demonstrate accelerating revenue growth momentum 3Q20 $3,197 • Revenue increased 13%, or 1% organically, as our Cloud-based end-to-end solutions are strongly resonating in the market • Adjusted EBITDA margin expanded 340 basis points (
Slide 11: Impressive Segment Execution
IMPRESSIVE SEGMENT EXECUTION BANKING SOLUTIONS REVENUE ($ in millions) • 3% organic revenue growth primarily due to continued strong growth in recurring revenue 3Q20 $1,507 • Organic revenue growth includes a headwind of approximately 3% associated with COVID and a large license comparison in the pr
Slide 12: Improving Consumer Spending Trends
IMPROVING CONSUMER SPENDING TRENDS 1 Merchant Monthly Volume and Transaction Trends Dollar Volume Transaction Count 6% 4% 4% 3% 2% 1% 2% 0% July August September Q3 • Consumer spending trends continued to improve during the third quarter • August results reflect timing of Labor Day holiday and an un
Slide 13: Strong Balance Sheet, Cash Flow and Liquidity
STRONG BALANCE SHEET, CASH FLOW AND LIQUIDITY BALANCE SHEET AND CASH FLOW SEPTEMBER 30, 2020 LIQUIDITY POSITION SEPTEMBER 30, 2020 1 Dividends Paid $217M Cash and Cash Equivalents $1.8B 1 3 Debt Paydown $268M Available Borrowing Capacity $2.4B 1 Free Cash Flow $866M Total Liquidity $4.2B Total Debt
Slide 14: Committed to Growth
COMMITTED TO GROWTH
Slide 15: Delivering Future-Ready Innovation with Technology & Expertise
COMMITTED TO GROWTH DELIVERING FOR OUR COLLEAGUES • Becoming the FinTech employer of choice FUTURE-READY • Maintaining an inclusive and diverse environment • Fostering a culture of innovation and growth INNOVATION WITH TECHNOLOGY & FOR OUR CLIENTS • Deploying differentiated technology through ongoin
Slide 16: Advancing the Way the World Pays, Banks and Invests
(— | So | ADVANCING THE WAY THE WORLD PAYS, BANKS AND INVESTS™
Slide 17: Appendix
APPENDIX
Slide 18: Forward-Looking Statements
FORWARD-LOOKING STATEMENTS This presentation and today’s webcast contain “forward-looking statements” within the meaning of the U.S. federal securities laws. Statements that are not historical facts, including statements about anticipated financial outcomes, including any earnings guidance or projec
Slide 19: Forward-Looking Statements
FORWARD-LOOKING STATEMENTS • competitive pressures on pricing related to the decreasing number of community banks in the U.S., the development of new disruptive technologies competing with one or more of our solutions, increasing presence of international competitors in the U.S. market and the entry
Slide 20: FIS Use of Non-GAAP Financial Information
FIS USE OF NON-GAAP FINANCIAL INFORMATION Generally Accepted Accounting Principles (GAAP) is the term used to refer to the standard framework of guidelines for financial accounting in the United States. GAAP includes the standards, conventions, and rules accountants follow in recording and summarizi
Slide 21: Reconciliation of GAAP to Non-GAAP Financials
RECONCILIATION OF GAAP TO NON-GAAP FINANCIALS ($ millions, unaudited) THREE MONTHS ENDED SEPTEMBER 30, 2020 MERCHANT BANKING CAPITAL MARKET CORPORATE TOTAL SOLUTIONS SOLUTIONS SOLUTIONS AND OTHER Revenue $1,017 $1,507 $626 $47 $3,197 FX (12) 7 (5) - (10) Constant Currency Revenue $1,005 $1,513 $621
Slide 22: Reconciliation of GAAP to Non-GAAP Financials
RECONCILIATION OF GAAP TO NON-GAAP FINANCIALS ($ millions, unaudited) THREE MONTHS ENDED SEPTEMBER 30, 2020 2019 Net earnings attributable to FIS common stockholders $20 $154 Provision (benefit) for income taxes 121 48 Interest expense, net 84 95 Other, net 6 (157) Operating income, as reported $231
Slide 23: Reconciliation of GAAP to Non-GAAP Financials
RECONCILIATION OF GAAP TO NON-GAAP FINANCIALS THREE MONTHS ENDED SEPTEMBER 30, ($ millions, unaudited) 2020 2019 Earnings (loss) before income taxes and equity method investment earnings (loss) $143 $209 (Provision) benefit for income taxes (121) (48) Equity method investment earnings (loss) - (5) N
Slide 24: Reconciliation of GAAP to Non-GAAP Financials
RECONCILIATION OF GAAP TO NON-GAAP FINANCIALS ($ millions, unaudited) THREE MONTHS ENDED SEPTEMBER 30, 2020 Net cash provided by operating activities $1,411 Non-GAAP adjustments: Acquisition, integration and other payments 140 Settlement activity (422) Adjusted cash flows from operations $1,129 Capi
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