Aci Worldwide, Inc. · NASDAQ:ACIW
Aci Worldwide — Transaction Systems Architects — Investor Presentation (June 2007)
28 slides from Aci Worldwide's investor presentation, Jun 6, 2007
Slide 1: Transaction Systems Architects, Inc. Investor Overview
Exhibit 99.1 Transaction Systems Architects, Inc. Investor Overview June 2007
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: Presentation Topics
Presentation Topics • Our Company • Our Industry • Our Products • How We Win • How We Grow • Our Strategic Vision • How We Measure It • Risks and Obstacles © 2007 Transaction Systems Architects, Inc. Page 3
Slide 4: Key Takeaways
Key Takeaways* Best Payments Solutions Global Presence Gold Standard for enterprise payments Global distribution system technology Over 800 customers in 84 countries Comprehensive features for the Represented in countries comprising payments value chain 95% of world GDP TSA plays an “honest broker”
Slide 5: Our Company
Our Company* Key Metrics Over 800 customers 84 countries, 33 offices Over 2,100 staff > 800 engineers > 180 sales staff Over 75 billion retail payments per year Over $5 trillion in wire transfers per day CY07 Financials (est.) Strategic Centers Regional Sales Office Revenue - $428 - 447 million Dist
Slide 6: Our Industry
Our Industry © 2007 Transaction Systems Architects, Inc. Page 6
Slide 7: Our Industry Position Today and Tomorrow
Our Industry Position Today and Tomorrow* Position Today Segments Position Tomorrow Segments Less than 25% of the top 500 30-40% penetration world banks have TSA solutions in top 500 world banks Leadership in U.S. wholesale Leadership in international banking Target Segments wholesale banking segmen
Slide 8: The Wholesale Banking Segment
The Wholesale Banking Segment The Segment Key Dynamics TSA is a leader in the U.S. Regulatory compliance (e.g. SEPA) Target is top 2000 world banks Many home-grown systems, many old TSA currently has over 120 customers systems Smaller banks addressed via ACI On Banking consolidation has created Dema
Slide 9: The Retail Banking Segment
The Retail Banking Segment The Segment Key Dynamics TSA is a global software leader Payment volumes on the increase Target is top 2000 world banks Regulatory compliance (e.g. EMV) TSA currently has over 470 customers Many home-grown systems, many old systems Smaller banks to be addressed via ACI On
Slide 10: The Retailer Segment
The Retailer Segment The Segment Key Dynamics TSA has a leadership position in North Payment volumes increasing America Regulatory compliance Target is top 500 global retailers Many home-grown systems, many old TSA currently has over 100 customers systems Smaller retailers to be addressed via Indust
Slide 11: The 3rd-Party Processor Segment
rd The 3 -Party Processor Segment The Segment Key Dynamics Payment volumes increasing TSA is the global software leader Regulatory compliance Target is top 500 global and local processors Many home-grown systems, many old systems TSA currently has over 140 customers Industry consolidation has create
Slide 12: What Our Products Do
What Our Products Do Retail Payment Engines Wholesale Payment Engines Device driving Online banking Authentication Authentication and authorization Switching Payment messaging and reporting Authorization Interface to payment networks Interface to payment networks Liquidity management Stand-in proces
Slide 13: How We Win
How We Win* Versus home-grown solutions End-to-end solution Investment in regulatory compliance Scale, availability and manageability Reduced cost of operations Platform for payments convergence Better, more timely regulatory compliance Full-service offering, including On Demand Integrated solutions
Slide 14: How We Grow
How We Grow © 2007 Transaction Systems Architects, Inc. Page 14
Slide 15: Elements of Our Growth
Elements of Our Growth* On Demand, Going to smaller prospects, Services offering more choice for access to TSA’s solutions, and investing to offer more Cross-sell services to the base Selling value-added solutions to existing Share customers and driving towards converged payments systems Replacing a
Slide 16: How We Measure It
How We Measure It © 2007 Transaction Systems Architects, Inc. Page 16
Slide 17: Key Financial Metrics
Key Financial Metrics* Operating Free Cash Flow* - $ millions Backlog - $ millions OFCF 60 Month Backlog 120 12 Month Backlog 2000 95 1750 $57 - 67 1500 $1,309 - $1,339 70 $1,226 $54 1250 $1,027 $48 $44 45 1000 750 20 500 $289 -5 $250 FY2004 FY2005 FY2006 CY2007E 250 *Free cash flow calculated as op
Slide 18: Key Financial Metrics - Revenue
Key Financial Metrics - Revenue Revenue by Geo Revenue by Type Software US 53% of TSA’s revenue License Fees 34% recurs on a monthly basis. Services (ILF) Americas 16% 30% Int'l Facilities Asia- 18% Software Mgmt. Pacific EMEA License Fees 4% 10% 38% (MLF) Maint 20% 30% FY2006 FY2006 Revenue by Prod
Slide 19: Key Financial Metrics - Profitability
Key Financial Metrics - Profitability Operating Income - $ millions Op Margin 150 50 125 40 100 $68 to $83 75 $64 30 $54 $62 21% 50 19% 18% 17% 20 25 10 0 FY2004 FY2005 FY2006 CY2007E Operating margin and EBITDA are adjusted for one-time items. EBITDA* - $ millions 150 EBITDA 50 125 $94 to $110 40 1
Slide 20: TSA's Balance Sheet and ROIC
TSA’s Balance Sheet and ROIC Assets Liabilities Deferred Cash and Other, 21% Revenue, 19% Cash Equivalents, 21% Other, 17% Receivables, 16% Equity, 50% Note Payable, Goodwill, Software, 6% 14% 36% 9/30/06 9/30/06 Return on Equity and Invested Capital Key Takeaways 50 ROE ROIC Strong, leverageable ba
Slide 21: Closing
Closing Best Payments Solutions Global Presence Gold Standard for enterprise payments Over 800 customers in 84 countries technology Represented in countries comprising Comprehensive features for the 95% of world GDP payments value chain Direct sales model, supplemented by in- TSA plays an “honest br
Slide 22: www.tsainc.com
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Slide 23: 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 the Co
Slide 24: Forward-Looking Statements (continued)
Forward-Looking Statements (continued) Any or all of the forward-looking statements may turn out to be wrong. They can be affected by the judgments and estimates underlying such assumptions or by known or unknown risks and uncertainties. Many of these factors will be important in determining the Com
Slide 25: Forward-Looking Statements (continued)
Forward-Looking Statements (continued) The risks identified in the Company’s filings with the Securities and Exchange Commission include: • Risks associated with the restatement of the Company’s financial statements; • Risks associated with not having current financial information available and the
Slide 26: Forward-Looking Statements (continued)
Forward-Looking Statements (continued) Backlog Estimates The Company’s 12-month and 60-month backlog estimates are based on the Company’s judgment about future events which, as described above, involve a number of risks and uncertainties. The Company estimates backlog using the methodology described
Slide 27: Reconciliation of EBITDA and Operating Free Cash Flow
Forward-Looking Statements (continued) Reconciliation of EBITDA ($ thousands) FY ended Sept 30, 2004 2005 2006 CY2007e Operating income 54,294 64,251 53,778 68,000 to 83,000 Selected one-time items Lawsuit - - 8,450 - Goodwill impairment charge - - - - Severance - - - 1,000 to 2,000 Stock Option Rev
Slide 28: www.tsainc.com
www.tsainc.com Page 28
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