Fidelity National Information Services, Inc. · NYSE:FIS
Fidelity National Information Services — Q3 2014 Earnings Presentation
23 slides from Fidelity National Information Services's earnings presentation, Oct 30, 2014
Slide 1: Third Quarter 2014 Earnings Call Supplemental Materials
THIRD QUARTER 2014 EARNINGS CALL SUPPLEMENTAL MATERIALS October 30, 2014 ©2013 FIS and/or its subsidiaries. All Rights Reserved.
Slide 2: Agenda
Agenda TOPIC SPEAKER Third Quarter 2014 Frank Martire, 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 2014 Highlights
THIRD QUARTER 2014 HIGHLIGHTS Frank Martire Chairman and CEO
Slide 6: Third Quarter 2014 Highlights
Third Quarter 2014 Highlights Consistent Execution of Growth Strategy • $1.6 BILLION revenue, up 7% Revenue • $0.80 adjusted EPS, up 8% 0 $1.6B • $287 MILLION adjusted cash flow from operations • $218 MILLION returned to shareholders Q3 2011 Q3 2012 Q3 2013 Q3 2014 • INVESTING for growth 6
Slide 7: Operations Review
OPERATIONS REVIEW Gary Norcross President and Chief Operating Officer
Slide 8: Operational Highlights
Operational Highlights • Capitalizing on GLOBAL market trends • Delivering strategic VALUE to clients INVESTING in growth markets and innovation • Driving PROFITABLE GROWTH 8
Slide 9: Acquisition of Clear2Pay
Acquisition of Clear2Pay MEETS accelerating demand in payments market • Provides leading SOLUTIONS for clients • Adds deep industry KNOWLEDGE and TALENT to FIS • Leverage GLOBAL DISTRIBUTION of FIS 9
Slide 10: Key Takeaways
Key Takeaways Strong year to date results Strong sales and execution Expanding global client relationships Investing for growth 10
Slide 11: Financial Summary
FINANCIAL SUMMARY Woody Woodall Chief Financial Officer
Slide 12: Consolidated Results
Consolidated Results ($ Millions, adjusted, except per share data) METRICS Q3 9 Months Revenue $ 1,605 $ 4,734 Growth vs. 2013 7% 5% Organic growth 5% 5% EBITDA $ 488 $ 1,402 Growth vs. 2013 4% 4% EBITDA Margin 30.4% 29.6% Net Earnings $ 229 $ 646 Growth vs. 2013 5% 6% EPS $ 0.80 $ 2.23 Growth vs. 2
Slide 13: Financial Solutions
Financial Solutions | ($ Millions, Adjusted) METRICS Q3 9 Months Revenue $ 633 $ 1,849 Growth vs. 2013 9% 6% Organic growth 6% 5% EBITDA $ 251 $ 727 EBITDA Margin 39.6% 39.3% Refer to www.investor.fisglobal.com for reconciliation of GAAP to non-GAAP items. See appendix for description of non-GAAP fi
Slide 14: Payment Solutions
Payment Solutions | ($ Millions, Adjusted) METRICS Q3 9 Months Revenue $ 615 $ 1,867 Growth vs. 2013 2% 2% Organic growth 2% 2% EBITDA $ 262 $ 780 EBITDA Margin 42.7% 41.8% Refer to www.investor.fisglobal.com for reconciliation of GAAP to non-GAAP items. See appendix for description of non-GAAP fina
Slide 15: International Solutions
International Solutions | ($ Millions, Adjusted) METRICS Q3 9 Months Revenue $ 358 $ 1,020 Growth vs. 2013 12% 11% Organic growth 9% 10% EBITDA $ 82 $ 217 EBITDA Margin 22.9% 21.3% Refer to www.investor.fisglobal.com for reconciliation of GAAP to non-GAAP items. See appendix for description of non-G
Slide 16: Non-GAAP Reconciliation – Earnings Per Share
Non-GAAP Reconciliation – Earnings Per Share Q3 2014 Q3 2013 GAAP net earnings per share from continuing operations $ 0.53 $ 0.60 Adjustments: Purchase Price Amortization 0.13 0.13 Refinance Costs 0.09 - Acquisition, Integration, and Severance Costs 0.06 - Capco Acquisistion Adjustments - 0.02 Adjus
Slide 17: Free Cash Flow
Free Cash Flow | ($ Millions) Q3 9 Months Cash Flow from Operations $ 208 $ 687 Settlement Activity 47 31 Bond Premium Payment 30 30 Capco Acquisition Related Payments 3 33 Adjusted Cash Flow from Operations $ 287 $ 780 Capital Expenditures (86) (273) Free Cash Flow $ 201 $ 508 Calculations may diff
Slide 18: Executing Capital Allocation Strategy
Executing Capital Allocation Strategy • Investing for growth – Innovation Clear2Pay Acquisition – Product and market expansion – Strategic acquisitions Accretive to revenue and earnings growth • Maintaining a strong balance sheet Margins expand as – $5.0 billion debt outstanding as of September
Slide 19: 2014 Financial Outlook
FINANCIAL OVERVIEW 2014 Financial Outlook METRIC February 2014 October 2014 Organic revenue growth 4.5% to 6.5% 4.5% to 6.5% Earnings per share, as adjusted $3.05 to $3.16 $3.06 to $3.12 Growth + 8% to 12% + 9% to 11% ~ adjusted net ~ adjusted net Free cash flow conversion earnings earnings 19
Slide 20: Appendix
APPENDIX
Slide 21: Foreign Currency
Foreign Currency International Solutions Group Costs Revenue Composition (Q3-14) Indian Other 6% Rupee 6% • Majority of costs within International Australian Dollar 3% Solutions Group are denominated in local currencies, reducing P&L impact Brazil Real 27% • Costs related to captive operation in Ind
Slide 22: Debt Summary
Debt Summary | ($ Millions) Sep 30, Dec 31, Rate 2014 2013 (1) Revolver L+125 bps $ 723 $ 29 Undrawn revolver capacity 25 bps 1,277 1,971 Term Loan (2017 Maturity) L+125 bps 1,300 1,963 2017 Notes 1.450% 300 - 2018 Notes 2.000% 250 250 2020 Notes 7.875% - 500 2022 Notes 5.000% 700 700 2023 Notes 3.5
Slide 23: Non-GAAP Financial Measures
Non-GAAP Financial Measures • Organic revenue includes reported revenue (adjusted revenue for 2014) plus pre-acquisition revenue for companies acquired during the applicable reporting periods. Organic revenue excludes the impact of foreign currency fluctuation in 2014. • Adjusted revenue (2014) incl
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