Aci Worldwide, Inc. · NASDAQ:ACIW
Aci Worldwide — Investor Presentation (June 2021)
28 slides from Aci Worldwide's investor presentation, Jun 1, 2021
Slide 1: Investor Deck Spring 2021
INVESTOR DECK Spring 2021 ACI Worldwide (ACIW) Exhibit 99.1
Slide 2: 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 of the Private Securities Litigation Reform Act of 1995. A discussion of these forward-look
Slide 3: Agenda
• ACI Worldwide® Company Overview • Investment Highlights • ACI Worldwide Financial Overview • Appendix Agenda 3
Slide 4: ACI Delivers Mission-Critical Payment Solutions
4 ACI Delivers Mission-Critical Payment Solutions We combine our global footprint with local presence to drive the real-time digital transformation of payments and commerce. Customers use our proven, scalable and secure solutions to process and manage digital payments, enable omni-commerce payments,
Slide 5: ACI Addresses the Payment Needs of Banks, Merchants and Billers
5 ACI Addresses the Payment Needs of Banks, Merchants and Billers WHO WE SERVE PROCESS AND MANAGE DIGITAL PAYMENTS • Banks • Processors • Central Infrastructures • Networks • Acquirers • Merchant Processors ENABLE OMNI- COMMERCE PAYMENTS • Merchants PRESENT AND PROCESS BILL PAYMENTS • Billers MANAGE
Slide 6: Our Solutions Span the Payments Ecosystem
6 Our Solutions Span the Payments Ecosystem PROCESS AND MANAGE DIGITAL PAYMENTS • Support for any payment type, with multi-bank, multi-currency and 24x7 payment processing capabilities using our Enterprise Payments Platform • Real-time payment capabilities, including low-value and high-value real-ti
Slide 7: ACI by the Numbers
7 ACI by the Numbers Americas 5,300+ customers EMEA ~450 customers Asia/Pacific ~250 customers Support 19 of the top 20 banks worldwide Prevent fraud for 1,500+ banks, intermediaries and merchants Serve 80,000+ merchants directly and through payment service providers Support thousands of billers 45+
Slide 8: ACI Key Strengths & Differentiators
ACI Key Strengths & Differentiators 8 Software-led Solutions ACI provides mission-critical, software-led real-time payment solutions. With a 45+ year history, we combine proven experience with innovation to deliver scalable, secure and compliant software solutions in a highly regulated market. Brand
Slide 9: ACI's Three-Pillar Strategy
9 ACI’s Three-Pillar Strategy FIT FOR GROWTH FOCUSED ON GROWTH STEP-CHANGE VALUE CREATION We are organized and operating with a strong focus on growth by: • Adopting a simpler, flatter and more agile organizational structure • Building a powerful, best-in- class sales engine • Fewer layers between b
Slide 10: Investment Highlights
Investment Highlights ACI Worldwide
Slide 11: Investment Highlights
Investment Highlights 11 Long-term, blue-chip, geographically diverse customer base with low customer concentration and strong renewal rates Subscription software model and large contractual backlog provides revenue and earnings visibility New Annual Recurring Revenue (ARR) from bookings and transac
Slide 12: Long-Term, Blue-Chip, Geographically Diverse Customer Base
Long-Term, Blue-Chip, Geographically Diverse Customer Base with Low Customer Concentration and Strong Renewal Rates 12 (1) As measured by asset size. 1 Diverse Customer BaseACI Has Global Reach & Scale Americas 5,300+ customers EMEA 450+ customers Asia/Pacific 250+ customers 300+ global merchants 3,
Slide 13: Subscription Software Model Provides Long-Term Visibility
Subscription Software Model Provides Long-Term Visibility 13 2 49% 2020 Revenue by Deployment Model On Premise License contracts are traditional software arrangements where software is installed and operated on the customer premise or in the public cloud. Contracts are typically 5-year term. Revenue
Slide 14: Large Contractual Backlog Provides Visibility
Large Contractual Backlog Provides Visibility 14 2 +Cross sales and new customer wins • Existing customer base and low customer attrition provide baseline for future revenue • Competitive positioning and high R&D spending provides pricing power • Electronic payments growth of mid-high single digits
Slide 15: Annual Recurring Revenue Growth
Annual Recurring Revenue Growth 15 3 (1) Recurring revenue defined as SaaS, PaaS and maintenance fees High-Quality, Recurring Revenue Made Up Approximately 76% of Total FY 2020(1) Revenue Breakdown by Type 59% 16% 19% 5% SaaS and PaaS On DemandMaintenance License Services
Slide 16: Rule of 40
Rule of 40 We will balance growth and profitability in creating long- term shareholder value 16 4 ~2% ~19% 2017 2019* 1Rule of 40 equals AOD segment revenue growth + AOD segment net adj. EBITDA margin, which excludes pass through interchange revenue and corporate overhead ACI On Demand Segment Rule
Slide 17: High-Margin Software and Cloud Delivery Will See Improving Profitability
High-Margin Software and Cloud Delivery Will See Improving Profitability with Scale 17 4 Note: Adjusted EBITDA is a non-GAAP measure. See the Appendix for additional information. Fixed Costs Provide Leverage in Model Adjusted EBITDA spikes follow revenue Non-recurring revenue is strongest in Q4 Recu
Slide 18: ACI Worldwide Financial Summary
ACI Worldwide Financial Summary
Slide 19: Historical Financial Summary
Historical Financial Summary Transaction-based business model provides revenue and earnings visibility 19 1,006 1,024 1,010 1,258 1,294 0 200 400 600 800 1,000 1,200 1,400 2016 2017 2018 2019 2020 241 262 251 308 359 0 50 100 150 200 250 300 350 400 2016 2017 2018 2019 2020 ADJ. EBITDARevenue Strong
Slide 20: Long-Term Financial Outlook
Long-Term Financial Outlook 20 Organic revenue Mid-single-digit organic revenue growth EBITDA margin Gradually improve adjusted EBITDA margin Target leverage ratio 2.5x EBITDA Recurring revenue Mid to high-single-digit recurring revenue growth
Slide 21: Appendix
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Slide 22: New Segment Historic Information
New Segment Historic Information 22 Segment Financial Data (thousands) Q1 2020 Q2 2020 Q3 2020 Q4 2020 FY 2020 Q1 2021 Segment Revenue Biller $ 153,869 $ 137,210 $ 149,464 $ 145,939 $ 586,482 $ 150,599 Merchants 31,795 37,313 40,461 39,375 148,945 38,670 Banks 105,821 125,387 125,959 201,730 558,896
Slide 23: Non-Functional Requirements Differentiate ACI's Services
Non-Functional Requirements Differentiate ACI’s services, solutions and offerings 23 Capacity 2,000 TPS Serviceability Automated deployment and upgrade Availability 99.999% uptime Globality Support for industry-leading number of endpoints to enable connectivity Scalability Best-in-class operating co
Slide 24: Non-GAAP Financial Measures
To supplement our financial results presented on a GAAP basis, we use non-GAAP measures, including in this presentation, that we believe are helpful in understanding our past financial performance and our future results. The non-GAAP measures in this presentation include pro forma adjustments for ou
Slide 25: Non-GAAP Financial Measures: Adjusted EBITDA
Non-GAAP Financial Measures 25 Adjusted EBITDA (millions) For the Years Ended December 31, 2016 2017 2018 2019 2020 Net income $ 130 $ 5 $ 69 $ 67 $ 73 Plus: Income tax expense 56 38 23 5 26 Net interest expense 39 38 30 52 45 Net other (income) expense (4) 3 4 (1) 1 Depreciation expense 23 25 24 24
Slide 26: Non-GAAP Financial Measures: Historic Segment Information
Non-GAAP Financial Measures 26 Historic Segment Information (millions) For the Years Ended December 31, 2016 2017 2018 2019 Revenue ACI On Demand $ 399.0 $ 425.6 $ 433.0 $ 679.0 Speedpay proforma adjustment - - 351.9 124.7 Total adjusted ACI On Demand $ 399.0 $ 425.6 $ 784.9 $ 803.7 ACI On Premise 5
Slide 27: Backlog Estimates
ACI also includes backlog estimates, which include all license, maintenance, and services revenue (including SaaS and PaaS) 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 the corre
Slide 28: 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 “believes,” “will,” “expects,” “a