Slide 1: Quarterly and Year End Results Presentation
February 14, 2012 December 31, 2011 Quarterly and Year End Results Presentation Exhibit 99.2
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 provision
Slide 3: Annual Overview and S1 Acquisition
Annual Overview and S1 Acquisition Phil Heasley Chief Executive Officer
Slide 4: 2011 Year in Review
2011 Year in Review • Exceeded full year guidance targets • Record sales bookings of $556 million • Solid backlog growth • Strong revenue growth of 11% • Good Operating Free Cash Flow generation • Expanded operating income margin • Improved Adjusted EBITDA margin • Visibility into forward revenue an
Slide 5: ACI / S1 - Compelling Strategic Rationale
ACI / S1 - Compelling Strategic Rationale • Combination creates an industry leader in financial and payments software serving financial institutions (“FI”), Processors and Merchant Retailers worldwide • Summary pro forma financials are compelling – Approximately $700 million in combined 2012E Revenu
Slide 6: Financial Review
Financial Review Scott Behrens Chief Financial Officer
Slide 7: Key Takeaways from the Fourth Quarter
Key Takeaways from the Fourth Quarter Solid Sales Performance in line with prior-year quarter • Strength in new add-on sales across the geographies Strong revenue quarter • Strong recurring revenue • Timing of ‘go-live’ events resulted in lower non-recurring revenues from backlog versus prior-year q
Slide 8: ACI Organic Key Takeaways from the Year
ACI Organic Key Takeaways from the Year Record sales year with $556 million in bookings • Sales rise of $31 million over prior-year led by solid add-on business • Full-year sales growth of 6%, new sales growth of 5% • Excluding FDC deal, overall growth was 16%, new sales growth was 12% 60-Month Back
Slide 9: ACI Organic Key Takeaways from the Year (cont)
ACI Organic Key Takeaways from the Year (cont) Operating Free Cash Flow of $67.2 million • Up $4.4 million or 7% over prior year • Ended the year with $197.1 million in cash Strong growth in operating income • Up $12.6 million or 24% over prior-year • Up $19.3 million or 36%, excluding S1 acquisitio
Slide 10: 2011 Achieved Strong Performance vs Guidance
2011 Achieved Strong Performance vs Guidance Key Metrics 2010 Actuals 2011 Range 2011 Actuals ex Trans Fees • Revenue was greater than range for the year due to strong sales • Operating Income and Adjusted EBITDA higher than expectations *Operating Income and Adjusted EBITDA exclude $6.7 million in
Slide 11: 2012 Organic Guidance
2012 Organic Guidance Key Metrics 2011 Actuals 2012 Low 2012 High • Revenue - Revenue growth rate in the mid to high single digit range - Revenue and margin phasing consistent with prior-year - Beginning 12-month backlog of $424 million represents 85% of mid-point revenue guidance • Operating Income
Slide 12: “nel
“nel payment systems 2 ‘a> / trusted globally
Slide 13: ACI / S1 - Transaction Update
ACI / S1 - Transaction Update • Closed S1 exchange offer on Friday February , • Integration plan underway – Annual cost synergies of $30 million to be achieved by end of Q1 – Additional cost synergies, including data center and facilities consolidation, to be provided in Q2 – S1’s Large FIs (LFIN) a
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Slide 15: ACI / S1 – Combined 2012 Guidance
ACI / S1 – Combined 2012 Guidance Standalone ACI Combined Guidance before One-Time Trans. Exps. ($ in Millions) • ACI 2012E represents midpoint of organic Guidance • Combined Guidance before one-time transaction expenses: – Represents 10½ months of financial results of S1 – State Farm custom project
Slide 16: ACI / S1 - Pro Forma Credit Statistics
ACI / S1 - Pro Forma Credit Statistics 12/31/2011 Stand-alone Stand-alone Trans. Illustrative ACI S1 (1) Adjustments Combined ($ in Millions) • $370M in funded debt at close with interest rate of L+200 bps – $250M 5-year revolver with $80M in availability – $200M 5-year term loan • Free cash flow pr
Slide 17: Appendix
Appendix
Slide 18: ACI / S1 – Combined 2012 Guidance
ACI / S1 – Combined 2012 Guidance Standalone Cost Purchase One-Time ACI Synergies Acct. Adj. Trans. Exps. Incremental Combined before Combined after S1 One-Time Trans. Exps. One-Time Trans. Exps. ($ in Millions) • ACI 2012E represents midpoint of standalone Guidance • Includes cost synergies of $23M
Slide 19: ACI / S1 - Pro Forma 2012E Purchase Accounting and One-Time Transaction Expenses
ACI / S1 - Pro Forma 2012E Purchase Accounting and One-Time Transaction Expenses Assumptions Purchase One-Time Acct. Adj. Trans. Exps. Total ($ in Millions) • Synergies reflect amount to be realized in 2012 (75% of $30M) • Non-cash deferred revenue adjustment estimated at 40% of S1 deferred revenue
Slide 20: ACI payment systems
ACI payment systems
Slide 21: Sales Composition
Sales Composition Product Focus Qtr Ended Dec 11 Qtr Ended Dec 10 Online Banking 19,881 19,757 0.6% Retail & Wholesale Payments 121,671 131,393 -7.4% Fraud Detection 7,889 7,172 10.0% Application & Tools 21,944 16,504 33.0% Total Sales 171,385 174,827 -2.0% Product Division ($MM) Qtr Ended Dec 11 Qt
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Slide 24: Operating Free Cash Flow ($ millions)
Operating Free Cash Flow ($ millions) Quarter Ended December 31, Year Ended December 31, Net cash provided by operating activities $31.2 $32.2 $83.5 $81.3 Adjustments: Net after-tax payments associated with S1 acquisition costs 3.3 - 3.7 - Net after-tax payments associated with IBM IT Outsourcing Tr
Slide 25: 60-Month Backlog ($ millions)
60-Month Backlog ($ millions) Quarter Ended December 31, September 30, December 31, Americas $912 $894 $866 EMEA Asia/Pacific Backlog 60-Month $1,617 $1,603 $1,555 Deferred Revenue $166 $156 $153 Other 1,451 1,447 1,402 Backlog 60-Month $1,617 $1,603 $1,555
Slide 26: Revenues by Channel ($ millions)
Revenues by Channel ($ millions) Quarter Ended December 31, Revenues: United States $59.1 $54.8 Americas International 16.5 20.3 Americas $75.6 $75.1 EMEA 42.2 53.1 Asia/Pacific 17.2 13.0 Revenues $135.0 $141.2
Slide 27: Monthly Recurring Revenue ($ millions)
Monthly Recurring Revenue ($ millions) Quarter Ended December 31, Monthly Software License Fees $26.1 $32.5 Maintenance Fees 38.3 34.4 Processing Services 14.3 13.7 Monthly Recurring Revenue $78.7 $80.6
Slide 28: Deferred Revenue and Expense ($ millions)
Deferred Revenue and Expense ($ millions) Quarter Ended December 31, September 30, December 31, September 30, Short Term Deferred Revenue $133.0 $123.9 $121.9 $131.5 Long Term Deferred Revenue 32.7 32.5 31.0 35.7 Total Deferred Revenue $165.7 $156.4 $152.9 $167.2 Total Deferred Expense $12.2 $11.7 $
Slide 29: Non-Cash Compensation, Acquisition Intangibles and Software
Non-Cash Compensation, Acquisition Intangibles and Software Quarter ended December 31, 2011 Quarter ended December 31, 2010 EPS Impact* $ in Millions EPS Impact* $ in Millions Amortization of acquisition- related intangibles $0.03 $0.9 $0.03 $1.0 Amortization of acquisition- related software 0.03 0.
Slide 30: Other Income / Expense ($ millions)
Other Income / Expense ($ millions) Quarter Ended December 31, September 30, December 31, September 30, Interest Income $0.7 $0.2 $0.2 $0.2 Interest Expense ($1.0) ($0.4) ($0.5) ($0.4) FX Gain / Loss ($0.8) ($0.1) ($0.1) ($1.5) Other $0.1 $0.0 $0.0 ($0.1) Total Other Income (Expense) ($1.0) ($0.3) (
Slide 31: Adjusted EBITDA
Adjusted EBITDA Quarter Ended December 31, Year Ended December 31, 2011 Net Income $23.9 $27.1 $45.9 $27.2 Plus: Income Tax Expense 12.1 15.3 18.5 21.5 Net Interest Expense 0.3 0.3 1.1 1.3 Net Other Expense 0.7 0.1 0.8 3.6 Depreciation Expense 2.0 1.6 7.5 6.7 Amortization Expense 5.0 5.0 20.8 19.7 N
Slide 32: Non-GAAP Financial Measures
Non-GAAP Financial Measures ACI is presenting operating free cash flow, which is defined as net cash provided (used) by operating activities, less net after-tax payments associated with S1 acquisition costs, net after-tax payments associated with IBM IT outsourcing transition costs, and capital expe
Slide 33: Non-GAAP Financial Measures
Non-GAAP Financial Measures ACI also includes backlog estimates which are 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 th
Slide 34: Non-GAAP Financial Measures
Non-GAAP Financial Measures Estimates of future financial results are inherently unreliable. Our backlog estimates require substantial judgment and are based on a number of assumptions as described above. These assumptions may turn out to be inaccurate or wrong, including for reasons outside of mana
Slide 35: Non-GAAP Financial Measures
Non-GAAP Financial Measures The presentation of these non-GAAP financial measures should be considered in addition to our GAAP results and is not intended to be considered in isolation or as a substitute for the financial information prepared and presented in accordance with GAAP. Management general
Slide 36: 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 37: 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, risks related to the global financial crisis and the continuing de
Slide 38: ACI’s software underpins electronic payments throughout retail and wholesale banking
ACI’s software underpins electronic payments throughout retail and wholesale banking, and commerce all the time, without fail. www.aciworldwide.com