Fidelity National Information Services, Inc. · NYSE:FIS
Fidelity National Information Services — Merger or Acquisition (November 2007)
32 slides from Fidelity National Information Services's merger presentation, Nov 6, 2007
Slide 1: Fidelity National Information Services November 2007
Fidelity National Information Services November 2007
Slide 2: Forward-Looking Statements
Forward-Looking Statements This presentation contains forward-looking statements that involve a number of risks and uncertainties and may not occur. Statements that are not historical facts, including statements about our beliefs and expectations, are forward- looking statements. Forward-looking sta
Slide 3: Lender Processing Services Proposed Spin-Off
Lender Processing Services Proposed Spin-Off
Slide 4: Strategic Rationale
Strategic Rationale Unique and distinct businesses Different customers Different markets Different management Limited ability to leverage operations, technology and product development Competing investment and resource needs Operational Considerations Market Considerations Perceived exposure to mort
Slide 5: Business Characteristics
Business Characteristics Lender Processing Services Category-leading outsource provider Uniquely balanced operating model driven by integrated technology, data, and outsourcing services Strong revenue growth, margin and cash flow profile Benchmarked against other category leading outsource providers
Slide 6: Strong Leadership & Management; Significant Scale & Leverage
Strong Leadership & Management Significant Scale & Leverage Extensive Core Processing & Integrated Product Capability Strong Organic Growth Strong Competitive Positions in Each Business Transaction Processing Services Lender Processing Services
Slide 7: Strong Organic Revenue Growth
Strong Organic Revenue Growth* Transaction Processing Services 7.7% 10.0% Lender Processing Services 9.3% 9.9% CAGR 2004 - 2007(F) Average 2006 - 2007(F) *Pro forma for Aurum, Sanchez, Intercept and Certegy acquisitions; and Property Insight and FNRES divestitures. Excludes eFunds, Watterson Prime a
Slide 8: Lender Processing Services Selected Publicly Traded Companies Analysis
Lender Processing Services Selected Publicly Traded Companies Analysis Note: Market data as of 10/30/2007. Source: First Call, I/B/E/S or Wall Street research (a) 2007, based on Company's FY revenue and EBITDA guidance LPS growth and margins compare favorably to its publicly traded peers Market Pric
Slide 9: Lender Processing Services Peer Comparison
Lender Processing Services Peer Comparison Characteristics of Comparable Companies Characteristics of LPS Leading market position Exposure to mortgage industry Significant portion of revenues are recurring Median 2008E Revenue growth of 11% Median 2008E EBITDA margin of 30% 60% market share of US mo
Slide 10: Transaction Processing Services Selected Publicly Traded Companies Analysis
Transaction Processing Services Selected Publicly Traded Companies Analysis TPS growth and margins compare favorably to its publicly traded peers Note: Market data as of 10/30/2007. Source: First Call, I/B/E/S or Wall Street research (a) 2007, based on Company's FY revenue and EBITDA guidance, exclu
Slide 11: Transaction Processing Services Peer Comparison
Transaction Processing Services TPS shows similar or better characteristics than its publicly traded peers Peer Comparison Characteristics of Comparable Companies Characteristics of TPS Leading market position Relationships with marquee financial institutions Exposure to fast growing payments indust
Slide 12: Selected Publicly Traded Companies
Selected Publicly Traded Companies Note: Market data as of 10/30/2007. Source: First Call, I/B/E/S or Wall Street research Industry-focused category-leading outsourcers tend to trade at a premium
Slide 13: Lender Processing Services
\ Lender Processing Services
Slide 14: Leveraging the Core: Lender Processing Services
Leveraging the Core Lender Processing Services LTM Revenue: $1.7 Billion (34%) LTM EBITDA: $560 Million (39%) Improved Operating Efficiency & Enhanced Customer Service
Slide 15: Mortgage Life Cycle
Mortgage Life Cycle SERVICING Post-closing, Quality Control Hansen PRO/Preview Data Validation/QC Fraud Review Servicing Set-up (board loan) MSP Loan Servicing MSP Tax Service AVM Lien Release and Recording Services Default Management Foreclosure and BK Outsourcing Field Services Default Title Insur
Slide 16: Lender Services Revenue Composition 3rd Quarter 2007
Lender Services Revenue Composition 3rd Quarter 2007 Property Valuation Processing 26% Origination Services 11% Tax Services 5% Default Services 32% 22% Other Information Services* 4% Origination Default Portfolio Valuation LPS Revenue Growth 9 Mos. 2007 11.8%
Slide 17: Competitive Landscape: End-to-End Mortgage Solutions
Competitive Landscape End-to-End Mortgage Solutions FIS First American LandAM Fiserv Credit Bureaus Title Underwriting ? ? AVM ? ? ? ? Appraisal ? ? ? ? ? Title & Closing Services ? ? ? ? ? Data Services ? ? ? Credit Services ? ? ? ? Tax Services ? ? ? Flood Services ? ? ? ? ? Default Management Out
Slide 18: FIS Success: Key Relationship Expansion
FIS Success Key Relationship Expansion Bank of America Wachovia Washington Mutual EMC Mortgage JPMorgan Chase Loan Origination Software ? ? AVM ? ? ? ? ? Appraisal ? ? ? ? ? Title & Closing Services ? ? ? ? Tax Services ? ? ? Flood Services ? ? ? ? MSP ? ? ? ? * Default Management ? ? ? ? Portfolio
Slide 19: FIS Success: Key Relationship Expansion
FIS Success Key Relationship Expansion Morgan Stanley Countrywide GMAC CitiGroup Loan Origination Software AVM ? ? ? Appraisal ? ? ? ? Title & Closing Services ? ? ? Tax Services ? Flood Services ? ? ? ? MSP ? ? Default Management ? ? ? ? Portfolio Analytics/ Due Diligence ? ? ? ? YTD 2007 Total FIS
Slide 20: Increasing LPS Client Penetration
Increasing LPS Client Penetration $348M $447M $545M CAGR = 25% 2005 2006 2007(F) Largest LPS Clients by Revenue
Slide 21: Market Share Growth
Market Share Growth Notes: (1) Originations includes Title, Property Valuations, Tax, Flood, and Credit (2) Default includes Default Title, ASAP, FIS Desktop, Foreclosure& Bankruptcy, Field Services, and Asset Management (2) Default includes Default Title, ASAP, FIS Desktop, Foreclosure& Bankruptcy,
Slide 22: Favorable Market Dynamics
Favorable Market Dynamics FIS will continue to target the centralized retail market and the servicing and default management segments Consolidation Large Banks are gaining market share Capacity/willingness to portfolio high quality non-conforming products (e.g. jumbos) Increased Market Share Establi
Slide 23: Transaction Processing Services
Transaction Processing Services
Slide 24: Leveraging the Core: Transaction Processing Services
Leveraging the Core Transaction Processing Services Improved Operating Efficiency & Enhanced Customer Service LTM Revenue*: $3.3 Billion (66%) LTM EBITDA*: $823 Million (62%) *includes LTM pro forma contribution from EFD; excludes corporate
Slide 25: Competitive Position - IFS Community Institutions
Item Processing Credit Card Processing eBanking/Bill Pay Fraud Analytics Debit Card Processing Core Processing TSYS FDC JKHY FISV IFS Not Served Presence Leadership Competitive Position - IFS Community Institutions Industry's Most Comprehensive Product Suite
Slide 26: Competitive Position - EBS
Competitive Position - EBS Top 100 U.S. Institutions 10 of top 10, 20 of top 25 40 of top 100 Commercial Lending Solutions: Global Banks # 1 Consumer Lending Solutions: US Banks 6 of top 10, 28 of top 50 # 1 Automotive Finance Lenders # 1 4 of top 6, 10 of top 25
Slide 27: Competitive Position International
Competitive Position International Top 25 Top 100 Top 1000 14 6 0 - - 49 24 3 - - 269 264 44 - - 2006 Ranking by Tier 1 capital Source: The Banker Magazine Region EMEA APAC LATAM Other % FIS Int'l Rev* 49% 12% 35% 4% *3Q-07 revenue composition
Slide 28: eFunds
eFunds
Slide 29: eFunds
eFunds Strengthens competitive position Adds scale Adds product capability Provides strong cross-sell opportunities Core processing, card services, EFT Enhance risk management product offering Expands off-shore resource capability
Slide 30: Greater Scale and Increased Product Capability
Greater Scale and Increased Product Capability
Slide 31: Expanded Customer Base
Expanded Customer Base Significant cross-selling opportunities Serving over 7,800 financial institutions in more than 60 countries worldwide 35 of the top 50 global banks 14 of the top 25 and 6 of the top 10 U.S. mortgage servicers Top 20 U.S. mortgage lenders Serving over 9,000 financial institutio
Slide 32: Projected Cost Savings
Projected Cost Savings $65 million in identified annual savings Corporate overhead Technology and shared services Facilities Leveraged product management Vendor management $0.05 to $0.10 accretive to 2008 diluted cash EPS $65 Million Run Rate by Year-end 2009
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