Fidelity National Information Services, Inc. · NYSE:FIS
Fidelity National Information Services — Q1 2016 Earnings Presentation
29 slides from Fidelity National Information Services's earnings presentation, May 3, 2016
Slide 1: First Quarter 2016 Earnings Call
First Quarter 2016 Earnings Call May 3, 2016 ©2016 FIS and/or its subsidiaries. All Rights Reserved.
Slide 2: Agenda
Agenda TOPIC SPEAKER Gary Norcross, Business Summary President and CEO Woody Woodall, Financial Summary Chief Financial Officer 2
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 futu
Slide 4: Business Summary
Business Summary Gary Norcross President and CEO
Slide 5: First Quarter Highlights
First Quarter Highlights • $2.3 BILLION adjusted revenue; up 4.2% on an organic basis • $0.79 adjusted EPS; up 22% • AHEAD of schedule on SunGard integration For a description of non-GAAP measures and a reconciliation of GAAP to non-GAAP measures, see Appendix. 5
Slide 6: First Quarter Highlights
First Quarter Highlights • Integrated Financial Solutions – Digital solutions continue steady growth – Continuing demand for enterprise governance, risk and compliance – EMV production tailwind on-going • Global Financial Solutions – Strong growth in outsourced solutions in Capital Markets – Clear2P
Slide 7: Consistent Execution of Strategy
Consistent Execution of Strategy • Invest for GROWTH • DE-LEVER the balance sheet • Executive FOCUS on integration 7
Slide 8: Financial Summary
FINANCIAL SUMMARY Woody Woodall Chief Financial Officer
Slide 9: Consolidated Results
Consolidated Results First Quarter ($ millions except per share data) Y-o-Y Growth METRICS Q1 2016 vs Q1 2015 Adj. Revenue $ 2,262 4.2% Organic Adj. EBITDA $ 637 8.1% Adj. Combined Adj. EBITDA Margin 28.2% 170 bps Adj. Combined Adj. EPS $ 0.79 22% • Organic revenue growth adjusts for M&A activity in
Slide 10: Integrated Financial Solutions: Solutions and Services
Integrated Financial Solutions Solutions and Services BANKING AND WEALTH PAYMENTS CORPORATE AND DIGITAL • Core Banking • Issuer Services • Internet Banking • Image and Output • Network Services • Mobile Banking Solutions • Prepaid Services • Bill Payment • Enterprise Governance, • Loyalty • Treasury
Slide 11: Integrated Financial Solutions
Integrated Financial Solutions First Quarter ($ millions) Y-o-Y Growth METRICS Q1 2016 vs Q1 2015 Adj. Revenue $ 1,121 5.4% Organic Adj. EBITDA $ 426 2.2% Adj. Combined Adj. EBITDA Margin 38.0% (130) bps Adj. Combined • Organic revenue growth adjusts for M&A activity in the prior period and F/X tran
Slide 12: Integrated Financial Solutions Revenue Contribution
Integrated Financial Solutions Revenue Contribution – Q1 Revenue Composition – Q1 ($ millions) ORGANIC RECURRING REVENUE | 87% Q1 GROWTH PROFESSIONAL SERVICES | 10% Banking and Wealth $ 489 5.1% NON-RECURRING / OTHER | 3% Payments 449 6.7% Corporate and Digital 184 3.7% Total Integrated Solutions(1)
Slide 13: Global Financial Solutions: Solutions and Services
Global Financial Solutions Solutions and Services INSTITUTIONAL AND BANKING AND CONSULTING WHOLESALE(1) PAYMENTS • Post-Trade Processing • Core Banking • North America • Global Trading • Channel Solutions • Europe • Buy Side • Back Office Processing • Risk and Compliance • Payments IP-LED REVENUE ~8
Slide 14: Global Financial Solutions
Global Financial Solutions First Quarter ($ millions) Y-o-Y Growth METRICS Q1 2016 vs Q1 2015 Adj. Revenue $ 990 4.4% Organic Adj. EBITDA $ 251 12.1% Adj. Combined Adj. EBITDA Margin 25.4% 270 bps Adj. Combined • Organic revenue growth adjusts for M&A activity in the prior period and F/X translation
Slide 15: Global Financial Solutions Revenue Contribution
Global Financial Solutions Revenue Contribution – Q1 Revenue Composition – Q1 ($ millions) RECURRING REVENUE | 70% ORGANIC Q1 GROWTH PROFESSIONAL SERVICES | 25% Institutional and Wholesale $ 504 5.4% Banking and Payments 351 4.0% Consulting 136 1.8% NON-RECURRING / OTHER | 5% Total Global Solutions(
Slide 16: Corporate and Other
Corporate and Other First Quarter ($ millions) METRICS Q1 2016 Adj. Revenue $ 151 Adj. EBITDA $ (40) • EBITDA inclusive of $76M Corporate Expense Revenue Contribution – Q1 Revenue Composition – Q1 ($ millions) RECURRING REVENUE | 85% ORGANIC Q1 GROWTH Public Sector and Education $ 57 7.1% PROFESSION
Slide 17: Cash Flow and Capital Allocation Strategy
Cash Flow and Capital Allocation Strategy • Free cash flow of $338 million in Q1 2016 • Maintaining a strong balance sheet – $11.3 billion debt outstanding as of March 31, 2016 – Focus on de-leveraging • Shareholder Returns – Return of $85 million to shareholders through dividends 17
Slide 18: Competitive Business Model
Competitive Business Model STRONG cash flow generation MAINTAIN strong balance sheet INVEST in growth 18
Slide 19: Appendix
APPENDIX
Slide 20: Debt Summary
Debt Summary ($ in millions) Mar 31, Dec 31, Rate 2016 2015 (1) Revolver (2019 Maturity) L+125 bps $ 1,650 $ 1,250 Undrawn revolver capacity 15 bps 1,350 1,750 Term Loan (2017 Maturity) L+125 bps 750 1,300 Term Loan (2018 Maturity) L+125 bps 1,500 1,500 2017 Notes (June) 1.450% 300 300 2018 Notes (A
Slide 21: GFS Revenue by Currency
GFS Revenue by Currency First Quarter GBP STERLING 8% EURO 10% BRAZIL REAL 7% OTHER 16% US DOLLAR 59% 21
Slide 22: 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 of the Co
Slide 23: Forward-Looking Statements
Forward-Looking Statements •the risk that implementation of software (including software updates) for customers or at customer locations may result in the corruption or loss of data or customer information, interruption of business operations, exposure to liability claims or loss of customers; •the
Slide 24: Non-GAAP Financial Information and Reconciliation
Non-GAAP Financial Information and Reconciliation Generally Accepted Accounting Principles (GAAP) is the term used to refer to the standard framework of guidelines for financial accounting. GAAP includes the standards, conventions, and rules accountants follow in recording and summarizing transactio
Slide 25: Definitions of Non-GAAP Financial Measures
Definitions of Non-GAAP Financial Measures Adjusted revenue includes reported revenue and is increased to adjust for the purchase accounting deferred revenue adjustment to estimated fair value, determined as fulfillment cost plus a normal profit margin. The deferred revenue adjustment represents rev
Slide 26: Definitions of Non-GAAP Financial Measures
Definitions of Non-GAAP Financial Measures EBITDA reflects earnings from continuing operations before interest, taxes, depreciation and amortization. Constant currency revenue is reported revenue excluding the impact of fluctuations in foreign currency exchange rates in the current period. Organic r
Slide 27: Organic Revenue Growth Calculation
Organic Revenue Growth Calculation First Quarter 2016 2015 Constant In Year Adjusted Organic Reported FX Currency Reported Adjustments Base Growth Integrated Financial Solutions $ 1,121 $1 $ 1,122 $ 928 $ 137 $ 1,065 5.4% Global Financial Solutions 990 40 1,030 512 475 987 4.4% Corporate and Other 1
Slide 28: Reconciliation of GAAP to Non-GAAP Financial Measures
Reconciliation of GAAP to Non-GAAP Financial Measures ($ in Millions, Except Per Share Data, Unaudited) Three Months Ended March 31, 2016 Acquisition, Acquisition Integration, Deferred and Purchase Revenue Severance Accounting GAAP Adjustment Costs Subtotal Amortization Non-GAAP Processing and servi
Slide 29: Reconciliation of GAAP to Non-GAAP Financial Measures
Reconciliation of GAAP to Non-GAAP Financial Measures ($ in Millions, Unaudited) Three Months Ended March 31, 2016 Integrated Global Financial Financial Corporate Solutions Solutions and Other Consolidated Processing and services revenue $ 1,121 $ 990 $ 70 $ 2,181 Non-GAAP adjustments: Acquisition d
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