Aci Worldwide, Inc. · NASDAQ:ACIW
Aci Worldwide — ACI Worldwide Investor Conferences May & June 2013
28 slides from Aci Worldwide's conference presentation, May 29, 2013
Slide 1: ACI Worldwide Investor Conferences
Exhibit 99.1 ACI Worldwide Investor Conferences May & June, 2013 May 2013
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: About ACI Worldwide
About ACI Worldwide Founded in 1975, ACI is a leading provider of electronic payments Leadership and transaction banking software solutions for financial institutions, retailers, processors and billers worldwide 24 of the top 25 and 67 of the top 100 global banks are • Global payments company with a
Slide 4: Global Distribution and Customer Base
Global Distribution and Customer Base ~ 4,200 employees in 36 countries AMERICAS EMEA ASIA/PACIFIC 1,950+ customers 500+ customers 150+ customers Customers: 600+ Customers: ~ 290 Customers: ~ 180 US billers retailers globally processors globally Headquarters Regional Offices Distributors ~ 2,600 cus
Slide 5: ACI is a Leading Provider of Electronic Payments and Transaction Banking Solutions
ACI is a Leading Provider of Electronic Payments and Transaction Banking Solutions ACI Product Family as % of 2012 Pro Forma Revenue Fraud Management Retail Payments • Payments transaction fraud • Retail payments engines • Enterprise financial crimes • Card and account management • Case management •
Slide 6: Universal Payments Platform (UPP) Strategy
Universal Payments Platform (UPP) Strategy Past FI Core Systems Customers burdened Reference Architecture with integration issues: • Massive customization needs • High cost of maintenance • Slow time to market • Difficult to achieve Retail Wholesale Online Fraud Bill Pay differentiation Today FI Cor
Slide 7: Our Customers are Top Global Banks, Processors and Retailers
Our Customers are Top Global Banks, Processors and Customers are Top Global Banks, Processors, Billers, and Retailers Retailers 6 May 2013
Slide 8: Large & Growing Worldwide Payment Opportunity
Large & Growing Worldwide Payment Opportunity SERVICEABLE SOFTWARE 2011 ESTIMATED SHARE INDUSTRY SPEND IN 2016 = $14.2B ($ in millions) FundTech 5YR CAGR (2011-16)= 9.6% 14,184 Bottomline NICE (Actimize) BPO (e.g.. BAE (Norkom & Detica) 5.8% Clear2Pay 12,989 1,057 processors) Dovetail FIS 11,914 1,0
Slide 9: Favorable Industry and Customer Trends
Favorable Industry and Customer Trends Market • Total addressable market growing 9.6% CAGR ~$10bn in 2012 Sizing • 50% of addressable market is in-sourced (homegrown) applications • Global transaction volume growth expected to be 9% CAGR through 2020 • Shift from paper to electronic • Increasing fra
Slide 10: Strategy to Drive Superior Performance
Strategy to Drive Superior Performance Continued focus on Control, Profitability and Growth • Continue to increase recurring revenue base while maintaining industry leading retention rates • Expand customer relationships by cross-selling (on average Growth customers use less than 3 ACI products) Dri
Slide 11: Financial Overview
MCI payment systems Financial Overview
Slide 12: Financial Summary (2008 – 2013E)
Financial Summary (2008 – 2013E) Non-GAAP Revenue Adjusted EBITDA & Margin $905 $271 Adjusted EBITDA % Margin 17% CAGR 39% CAGR $689 $191 $465 $418 $406 $418 $113 $88 30% $73 28% 24% $52 21% 18% 12% 2008 2009 2010 2011 2012 2013E 2008 2009 2010 2011 2012 2013E Non-GAAP Operating Income & Margin Oper
Slide 13: Large & Growing Backlog Provides Revenue and Earnings Visibility
Large & Growing Backlog Provides Revenue and Earnings Visibility 12-Month Backlog - $743MM 60-Month Backlog - $3.1BN Non- Recurring, 18% Committed, Renewal, 48% 52% Monthly Recurring, 82% • Backlog from monthly recurring revenues and scheduled project go-lives drives 80%+ of GAAP revenue, leading to
Slide 14: Low Attrition & Fixed Term Licenses Produce Recurring Revenue Model
Low Attrition & Fixed Term Licenses Produce Recurring Revenue Model • >70% recurring revenue (includes Sales Bookings maintenance, license and hosting fees) • 80% of annual revenue comes from ACI Sales, Net of Term Extensions $766 backlog ACI Term Extensions $556 $265 $525 • 95% of our contracts are
Slide 15: Diversified Revenue Base by Geography & Type
Diversified Revenue Base by Geography & Type • Diversified global company with LTM 3/31/2013 Revenue by Region customers spanning more than 80 countries Asia/ Pacific 11% Americas 63% • Approximately 80% of business EMEA 26% denominated in U.S. dollars • EMEA is comprised of ~30% UK- derived revenue
Slide 16: Diversified Customer Base with Significant Cross Sales Opportunity
Diversified Customer Base with Significant Cross Sales Opportunity ACI Pro Forma FY 2012 Revenue by Customer • Historically, no ACI Customer % of Total customer has accounted for Customer #1 3.3% Customer #2 1.7% more than 4% of total Customer #3 1.7% revenue Customer #4 1.4% Customer #5 1.1% • In F
Slide 17: >70% Annual Recurring Revenue and Growing
>70% Annual Recurring Revenue and Growing 250,000 200,000 Ongoing services, implementations, increased capacity 150,000 sales and other 100,000 Recurring revenue: (hosting, maintenance and license fees (paid 50,000 monthly, quarterly or annually) - Q108 Q208 Q308 Q408 Q109 Q209 Q309 Q409 Q110 Q210 Q
Slide 18: 2013 Outlook
2013 Outlook Current Non-GAAP Guidance ORCC Guidance $'s in millions Range Impact* Range Revenue $765 - $785 $128 - $132 $895 - $915 Operating Income $150 - $160 $19 - $21 $170 - $180 Adjusted EBITDA $230 - $240 $35 - $37 $266 - $276 * ORCC results are for the period March 11, 2013 through December
Slide 19: Questions?
MCI payment systems Questions?
Slide 20: Non-GAAP Financial Measures
Non-GAAP Financial Measures To supplement our financial results presented on a GAAP basis, we use the non-GAAP measure indicated in the tables, which exclude certain business combination accounting entries and expenses related to the acquisitions of ORCC and S1, as well as other significant non-cash
Slide 21: Non-GAAP Financial Measures
Non-GAAP Financial Measures Non-GAAP Revenue (millions) For the Years ended December 31, 2012 2011 2010 2009 2008 Revenue $ 667 $ 465 $ 418 $ 406 $ 418 Plus: Deferred revenue fair value adjustment 22 - - - - Non-GAAP Revenue $ 689 $ 465 $ 418 $ 406 $ 418 Non-GAAP Operating Income (millions) For the
Slide 22: Non-GAAP Financial Measures
Non-GAAP Financial Measures Adjusted EBITDA (millions) For the Years ended December 31, 2012 2011 2010 2009 2008 Net income $ 49 $ 46 $ 27 $ 20 $ 11 Plus: Income tax expense 16 18 22 13 17 Net interest expense 10 1 1 2 2 Net other expense (income) - 1 3 7 (8) Depreciation expense 13 8 7 6 6 Amortiza
Slide 23: Non-GAAP Financial Measures
Non-GAAP Financial Measures ACI is also presenting operating free cash flow, which is defined as net cash provided by operating activities, plus net after-tax payments associated with employee-related actions and facility closures, net after-tax payments associated with acquisition related transacti
Slide 24: Non-GAAP Financial Measures
Non-GAAP Financial Measures ACI also includes backlog estimates, which include all software license fees, maintenance fees and services 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 with
Slide 25: Non-GAAP Financial Measures
Non-GAAP Financial Measures Estimates of future financial results are inherently unreliable. Our backlog estimates require substantial judgment and are based on a number of assumptions as described above. These assumptions may turn out to be inaccurate or wrong, including for reasons outside of mana
Slide 26: 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 “belie
Slide 27: Forward-Looking Statements
Forward-Looking Statements All of the foregoing forward-looking statements are expressly qualified by the risk factors discussed in our filings with the Securities and Exchange Commission. Such factors include but are not limited to, increased competition, the performance of our strategic product, B
Slide 28: ACI's software underpins electronic payments throughout retail and wholesale banking
ACI’s software underpins electronic payments throughout retail and wholesale banking, and commerce all the time, without fail. www.aciworldwide.com May 2013
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