Aci Worldwide, Inc. · NASDAQ:ACIW
Aci Worldwide — ACI Worldwide Investor Conferences Spring 2014
24 slides from Aci Worldwide's conference presentation, Mar 5, 2014
Slide 1: ACI Worldwide Investor Conferences Spring 2014
ACI Worldwide Investor Conferences Spring, 2014 Exhibit 99.1
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
2013 Pro Forma Revenue $1023 Million 2013 Pro Forma Adjusted EBITDA $273 Million 12/31/2013 60-Month Backlog $3.9 Billion Founded in 1975, ACI is a leading provider of electronic payments and transaction banking software solutions for financial institutions, retailers, processors and billers worldwi
Slide 4: Global Distribution and Customer Base: The Leader in the Mega and Large FIs Market
AMERICAS 1,950+ customers EMEA 500+ customers ASIA/PACIFIC 150+ customers 5,000+ customers in over 80 countries rely on ACI solutions Customers: ~ 180 processors globally Customers: ~ 290 retailers globally Customers: 3600+ US billers 18 of the top 20 and 67 of the top 100 global banks are customers
Slide 5: ACI is a Leading Provider of Electronic Payments and Transaction Banking Solutions
Fraud Bill Pay / Collections Online Banking Wholesale Payments Retail Payments ACI Product Family Revenue % Highlights ACI is a Leading Provider of Electronic Payments and Transaction Banking Solutions • Tools to prevent payment transaction fraud and enterprise financial crimes • Case management • I
Slide 6: Diverse Customer Base Provides Significant Cross Sell Opportunities
FY 2013 Revenue by Customer No single customer represents more than 3% of consolidated revenue On average, customers use 3 ACI products or less representing a large cross sell opportunity Diverse Customer Base of Top Global Banks, Processors, Billers and Retailers Provide Significant Cross Sell Oppo
Slide 7: Attractive trends will drive growth opportunities for ACI
Attractive trends will drive growth opportunities for ACI Industry Dynamics ² Customer Trends Market Sizing ¹ Source: Financial Insights - Worldwide Payments Market Sizing 2012 and 3rd Party Consultant Source: McKinsey “Dynamic Changes in the Global Payments Industry”, 2012 • Shift from paper to ele
Slide 8: Strategy to Drive Superior Performance
Growth Drivers Continuous Improvements to Drive Margin Expansion Disciplined Acquisition / Investment Strategy Strategy to Drive Superior Performance Continued Focus on Control, Profitability and Growth • Continue to increase recurring revenue base • Expand customer relationships by cross-selling (o
Slide 9: Financial Overview
Financial Overview
Slide 10: Bookings Growth Leads to Large Backlog Providing Revenue and Earnings Visibility
$600 $293 $315 $330 $501 $1,517 $1,566 $1,617 $2,416 $3,860 ACI Term Extensions $425 $525 $556 $766 $888 SNET 20% CAGR $132 $210 $226 $265 $288 Renewal rates across ACI products >96% >95% of our contracts are transaction-based SALES BOOKINGS HISTORICAL 60-MONTH BACKLOG 26% CAGR (millions) (millions)
Slide 11: ACI's Financial Summary
18% 21% 24% 28% 29% $406 $418 $465 $689 $871 $73 $88 $113 $191 $239 NON-GAAP REVENUE ADJUSTED EBITDA Adjusted EBITDA % Net Margin 21% CAGR 35% CAGR (millions) (millions) 2013 revenue geographic mix: 63% Americas, 26% EMEA and 11% Asia Pacific ACI’s Financial Summary 2009 – Note: Net Margin based on
Slide 12: Strong Recurring Revenue Growth
STRONG RECURRING REVENUE GROWTH • All components of non recurring revenue are seasonally stronger in the latter half of the year • Monthly recurring revenue is predictable and less seasonal >70% Recurring Revenue
Slide 13: SaaS Subscriptions and Transactions Contribution Up Sharply
SaaS Subscriptions and Transactions Contribution Up Sharply 2009 segment contribution 2013 segment contribution • SaaS Subscriptions & Transactions have grown from ~10% to over 40% • Overall monthly recurring revenues have grown from ~60% to over 70% • Note: 2013 percentages based normalized for ORC
Slide 14: Low Cap Ex and Strong Cash Flow
$30 $63 $67 $24 $151 OPERATING FREE CASH FLOW $10 $13 $19 $17 $33 CAPITAL EXPENDITURES 3% 3% 4% 3% 4% % of Non-GAAP Revenue Low capital expenditures needed to maintain existing client base ACI generates strong free cash flow • NOLs starting to contribute and cash taxes much lower than GAAP (millions
Slide 15: Efficient Use of Cash - Aggressive Share Repurchases
$409m $1090m CUMULATIVE SHARE REPURCHASES Average price $32/share $ 156 million remains authorized *YTD 2014 data as of February 26, 2014 2012 Includes $30m in IBM warrant purchases Efficient Use of Cash - Aggressive Share Repurchases
Slide 16: Slide 16
Slide 17: Financial Summary – Five Year Targets
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
Slide 18: High Quality Software Model Drives Superior Performance
High Quality Software Model Drives Superior Performance • Leading market position • High retention and renewal rates • Pricing power and large barriers to entry • Significant recurring revenue • Scalable model with improving margin • Low cash investment required • Strong cash flow and balance sheet
Slide 19: Non-GAAP financial measures explanation
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 Official Payments, Online Resources and S1 and significant transaction related expenses, as
Slide 20: Non-GAAP Financial Measures
Non-GAAP Financial Measures Non-GAAP Revenue (millions) Revenue $ $ $ $ $ Deferred revenue fair value adjustment - - - Non-GAAP revenue $ $ $ $ $ Adjusted EBITDA (millions) Net income (loss) $ $ $ $ $ Plus: Income tax expense (benefit) Net interest expense Net other expense - Depreciation expense Am
Slide 21: Operating free cash flow definition
ACI is also presenting operating free cash flow, which is defined as net cash provided by operating activities, plus payments associated with the cash settlement of acquisition related options and significant acquired opening balance sheet liabilities, plus net after-tax payments associated with emp
Slide 22: Backlog estimate definition
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 within the corresponding backlog
Slide 23: 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 “believes,” “ will,” “expects,” “
Slide 24: ACI payment systems trusted globally
ANS payment systems trusted globally
ACI Worldwide — ACI Worldwide Investor Conferences Spring 2014 on 6ix