Fidelity National Information Services, Inc. · NYSE:FIS
Fidelity National Information Services — Q3 2013 Earnings Presentation
21 slides from Fidelity National Information Services's earnings presentation, Oct 29, 2013
Slide 1: Third Quarter 2013 Earnings Call Supplemental Materials
THIRD QUARTER 2013 EARNINGS CALL SUPPLEMENTAL MATERIALS October 29, 2013 ©2013 FIS and/or its subsidiaries. All Rights Reserved.
Slide 2: Agenda
Agenda TOPIC SPEAKER Frank Martire, Third Quarter Highlights Chairman and CEO Gary Norcross, Operations Review President and Chief Operating Officer Woody Woodall, Financial Summary Chief Financial Officer 2
Slide 3: Forward-looking Statements
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 future strategies o
Slide 4: Use of Non-GAAP Measures
Use of Non-GAAP Measures 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 transactions and in the preparation
Slide 5: Third Quarter Highlights
THIRD QUARTER HIGHLIGHTS Frank Martire Chairman and CEO
Slide 6: Driving Performance
Driving Performance • Consistent ORGANIC GROWTH •STRONG year-to-date RESULTS •ON TRACK to achieve full-year targets •CONFIDENT in outlook 6
Slide 7: Operations Review
OPERATIONS REVIEW Gary Norcross President and Chief Operating Officer
Slide 8: Operational Highlights
Operational Highlights •GLOBAL market trends •EXPANDING footprint in growth markets and geographies • Delivering INNOVATION • Driving GROWTH 8
Slide 9: Key Takeaways
Key Takeaways Driving performance Accelerating revenue growth Focused on market expansion and solution innovation Foundation for superior performance 9
Slide 10: Financial Summary
FINANCIAL SUMMARY Woody Woodall Chief Financial Officer
Slide 11: Consolidated Results
Consolidated Results | ($ Millions, except per share data) METRICS 3rd QUARTER YTD Revenue $ 1,502 $ 4,492 Growth 5% 4% Organic growth 5% 4% Adjusted EBITDA $ 470 $ 1,348 Growth 6% 6% Adjusted EBITDA Margin 31.3% 30.0% Y-O-Y Change 50 bps 40 bps Adjusted Net Earnings $ 218 $ 609 Growth 16% 12% Adjus
Slide 12: Financial Solutions
Financial Solutions | ($ Millions) METRICS 3rd QUARTER YTD Revenue $ 579 $ 1,741 Growth 2% 4% Organic growth 1% 3% EBITDA $ 239 $ 698 Growth 7% 8% EBITDA Margin 41.4% 40.1% Y-O-Y Change 170 bps 130 bps Refer to www.investor.fisglobal.com for reconciliation of GAAP to non-GAAP items. See appendix for
Slide 13: Payment Solutions
Payment Solutions | ($ Millions) METRICS 3rd QUARTER YTD Revenue $ 602 $ 1,837 Growth 4% 3% Growth, as adjusted (1) 4% 4% EBITDA $ 255 $ 776 Growth 9% 7% EBITDA Margin 42.4% 42.3% Y-O-Y Change 170 bps 170 bps (1) Excludes revenue from check-related businesses that increased $8 million to $115 millio
Slide 14: International Solutions
International Solutions | ($ Millions) METRICS 3rd QUARTER YTD Revenue $ 322 $ 917 Growth 9% 7% Organic growth 12% 10% EBITDA $ 81 $ 205 Growth 14% 10% EBITDA Margin 25.3% 22.4% Y-O-Y Change 110 bps 80 bps Refer to www.investor.fisglobal.com for reconciliation of GAAP to non-GAAP items. See appendix
Slide 15: Free Cash Flow
Free Cash Flow | ($ Millions) 3rd YTD QUARTER Cash Flow from Operations $ 311 $ 676 Bond Premium Payment - 52 Settlement Activity - 4 Adjusted Cash Flow from Operations $ 311 $ 732 Capital Expenditures (82) (239) Free Cash Flow $ 229 $ 493 Calculations may differ due to rounding. Refer to www.invest
Slide 16: Executing Capital Allocation Strategy
Executing Capital Allocation Strategy • Returning cash to shareholders – $64 million in dividends – $125 million in share repurchases – ~$300 million available under existing share repurchase authorization • Maintaining strong balance sheet – $4.8 billion debt outstanding as of September 30 – 2.7 ti
Slide 17: Updating Full Year Outlook
FINANCIAL OVERVIEW Updating Full Year Outlook METRIC FEBRUARY 2013 OCTOBER 2013 Reported revenue growth 4% to 6% 4% to 5% Organic revenue growth 3% to 5% 4% to 5% Margin expansion 30 bps to 50 bps ~30 bps Earnings per share, as adjusted $2.77 to $2.87 $2.80 to $2.87 Growth +11% to 15% +12% to 15% ~
Slide 18: Appendix
APPENDIX
Slide 19: Foreign Currency
Foreign Currency International Solutions Group Costs Revenue Composition (Q3-13) Indian Other 4% Australian Rupee 4% Dollar 4% • Majority of costs within International Solutions Group are denominated in local currencies, reducing P&L impact Brazil Real US Dollar (1) 31% • Costs related to captive op
Slide 20: Debt Summary
Debt Summary | ($ Millions) Dec 31, Sep 30, Rate 2012 2013 Revolver L+150 bps $ 126 $ 366 Undrawn revolver capacity 25 bps 1,024 1,634 Term Loan (2014 Maturity) L+225 bps 250 - Term Loan (2017 Maturity) L+150 bps 2,021 1,975 2017 Notes 7.625% 750 - 2018 Notes 2.000% - 250 2020 Notes 7.875% 500 500 2
Slide 21: Non-GAAP Financial Measures
Non-GAAP Financial Measures EBITDA is earnings from continuing operations before interest, taxes and depreciation and amortization. Adjusted EBITDA (2013 comparative data) excludes adjustments related to the December 2010 acquisition of Capco. Adjusted EBITDA (2012 comparative data) excludes charges
Fidelity National Information Services — Q3 2013 Earnings Presentation on 6ix