Aci Worldwide, Inc. · NASDAQ:ACIW
Aci Worldwide — Investor Presentation (May 2015)
26 slides from Aci Worldwide's investor presentation, May 5, 2015
Slide 1: ACI Worldwide (ACIW) May/June 2015
Exhibit 99.1 ACI Worldwide (ACIW) May/June 2015
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 5,600 customers • Long-term, blue-chip, geographically diverse customer base with low customer concentration Founded in 1975, 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 5,600+ 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: 300+ 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 In a fragmented $20+ • Solutions help authenticate, authorize, billion market, we control acquire, clear
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 FY 2014 Revenue by Customer Customer 1 # 2.3% Customer 2 # 2.3% Customer 4 # 1.6% Customer 5 # 0.8% Customer # 6 0.8% Customer 7 # 0.8% Customer # 8 0.8% Customer 9 # 0.8% Custom
Slide 7: Delivering an Omni-channel Customer Experience for one of the world's largest banks
Delivering an Omni-channel Customer Experience for one of the world’s largest banks CHALLENGE BENEFITS • Aspirations to be the primary bank of • Significant operating cost improvements its customers held back by • New channels deployed in 4 months instead of 18, inconsistent experience caused by red
Slide 8: Complex Payments Environment Leads to Inconsistent Customer Experience
Complex Payments Environment Leads to Inconsistent Customer Experience Before CORE BANKING Core interface Payment Payment engine engine Payment Online banking Branch system engine Payment engine Payment engine Call center AML Mobile ATM Tablet Fraud Fraud POS detection Fraud detection detection MEET
Slide 9: Streamlined, Consistent Omni-channel Experience
Streamlined, Consistent Omni-channel Experience Future payment types and After channels Branch Payment engine system Call Center Core banking Payment engine FRAMEWORK ATM POS Online banking Tablet Fraud detection and Mobile AML MEETS THE CHALLENGE OF CHANGE 9
Slide 10: Favorable Industry and Customer Trends
Favorable Industry and Customer Trends • Total addressable market is ~$20bn in 2014 and growing mid to upper single digits Market • ~50% of addressable market is in-sourced (homegrown) applications 1 Sizing • eCommerce transaction growth expected to be 6x in-store transaction growth • Shift from pap
Slide 11: Financial Overview
UNIVERSAL PAYMENTS hC FINANCIAL OVERVIEW a1
Slide 12: Bookings Growth Leads to Large Backlog Provides Revenue and Earnings Visibility
Bookings Growth Leads to Large Backlog Provides Revenue and Earnings Visibility Renewal rates across ACI products in the mid-high 90%s >95% of our contracts are transaction-based NET NEW SALES BOOKINGS HISTORICAL 60-MONTH BACKLOG $702 SNET 22%+ CAGR 28%+ CAGR $4,160 $3,861 $600 $501 $2,416 $330 $315
Slide 13: ACI's Financial Summary, 2011 – 2015
ACI’s Financial Summary, 2011 – 2015 2014 revenue geographic mix: 69% Americas, 23% EMEA and 8% Asia/Pacific NON-GAAP REVENUE ADJUSTED EBITDA $285 $1,055 23% CAGR $1,018 26% CAGR $261 $239 $871 $191 $689 $465 $113 30% 29% 29% 28% 24% 2011 2012 2013 2014 2015E 2011 2012 2013 2014 2015E (millions) (mi
Slide 14: Fixed Costs Provide Leverage in Model
Fixed Costs Provide Leverage in Model $350 Non Recurring Revenue: Ongoing Implementations, Services, Capacity Sales and Annual License Fees $300 Monthly Recurring Revenue: SaaS Subscriptions & Transactions, Maint and License Fees (Paid Monthly, Quarterly only) Adjusted EBITDA $250 $200 $150 $100 $50
Slide 15: SaaS Subscriptions and Transactions Contribution Growth
SaaS Subscriptions and Transactions Contribution Growth 2009 segment contribution 2014 segment contribution SaaS Monthly subscriptions & license fees SaaS Monthly transactions, 9% subscriptions & license fees, 10% transactions 18% 41% Initial licenses fees 14% Initial licenses Services fees, 20% Mai
Slide 16: Low Cap Ex and Strong Cash Flow
Low Cap Ex and Strong Cash Flow CAPITAL EXPENDITURES OPERATING FREE CASH FLOW $151 $34.9 $32.5 $134 $19 $16.7 $63 $67 $13 4% 4% 3% $24 3% 2% 2010 2011 2012 2013 2014 2010 2011 2012 2013 2014 (millions) (millions) % of Non-GAAP Revenue ACI generates strong free cash flow Low capital expenditures need
Slide 17: Backlog is Foundation, Cross Sales Add Growth
Backlog is Foundation, Cross Sales Add Growth • Existing customer base and low customer attrition provide baseline for future revenue • Competitive positioning and high R&D spending provides pricing power • Electronic payment growth of mid-high single digits • Cross sales typically account for 2/3 o
Slide 18: 2015 Guidance
2015 Guidance 2015 Non-GAAP Incremental 2015 Non-GAAP Key Metrics Guidance FX Impact Guidance 12/31/14 fx rates 3/31/15 fx rates Non-GAAP Revenue 1,050 - 1,080 (10) 1,040 - 1,070 Adjusted EBITDA 280 - 290 - 280 - 290 $s in millions Guidance - Reaffirming full year guidance adjusted for FX. Represent
Slide 19: 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 MEETS THE CHALLENGE OF CHANGE 19
Slide 20: The Advantage
Questions? The Advantage • Leading market position • High retention and renewal rates • Significant recurring revenue • Scalable, fixed-cost model with improving margin • Low cash investment required MEETS THE CHALLENGE OF CHANGE 20
Slide 21: 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 Online Resources and significant transaction related expenses,
Slide 22: Non-GAAP Financial Measures
Non-GAAP Financial Measures Non-GAAP Revenue (millions) 2010 2011 2012 2013 2014 Revenue $ 418 $ 465 $ 667 $ 865 $ 1,016 Deferred revenue fair value adjustment - - 22 6 2 Non-GAAP revenue $ 418 $ 465 $ 689 $ 871 $ 1,018 Adjusted EBITDA (millions) 2010 2011 2012 2013 2014 Net income (loss) $ 27 $ 46
Slide 23: 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 payments associated with the cash settlement of acquisition related options and significant acquired opening balance sheet liabilities, plus net after-tax
Slide 24: 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 25: 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 26: Universal Payments
hC UNIVERSAL PAYMENTS 26