Fidelity National Information Services, Inc. · NYSE:FIS
Fidelity National Information Services — Q1 2018 Earnings Presentation
26 slides from Fidelity National Information Services's earnings presentation, May 1, 2018
Slide 1: First Quarter 2018 Earnings Call
First Quarter 2018 Earnings Call May 1, 2018 ©2018 FIS and/or its subsidiaries. All Rights Reserved.
Slide 2: Agenda
Agenda Gary Norcross, Business Summary President and CEO Woody Woodall, Financial Summary Chief Financial Officer 2
Slide 3: Disclosures
Disclosures 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 futur
Slide 4: Business Summary
Business Summary Gary Norcross President and CEO 4
Slide 5: First Quarter Financial Highlights
First Quarter Financial Highlights $2.1B 34.1% $1.09 Adjusted Adjusted Adjusted Revenue EBITDA Margin EPS +3.3% organic +340 bps +32.9% Y-o-Y growth expansion growth For a description of non-GAAP measures and a reconciliation of GAAP to non-GAAP measures, see Appendix. 5
Slide 6: Strategic Growth Levers
Strategic Growth Levers INNOVATE DRIVE BUILD for long-term strong sales with on our global growth market leading scale solutions 6
Slide 7: Financial Summary
Financial Summary Woody Woodall Chief Financial Officer 7
Slide 8: Consolidated Results
Consolidated Results First Quarter (Q1) 2018 ($ millions, except per share data) METRICS Q1 2018 Y-o-Y vs Q1 2017 Adj. Revenue $ 2,068 3.3% Organic(1) Adj. EBITDA $ 705 6.7% Adj. EBITDA Margin 34.1% 340 bps Adj. EPS $ 1.09 32.9% (1) Organic revenue growth adjusts for FX translation and M&A activity,
Slide 9: Integrated Financial Solutions
Integrated Financial Solutions First Quarter (Q1) 2018 ($ millions) METRICS Q1 2018 Y-o-Y vs Q1 2017 Revenue $ 1,061 3.2% Organic(1) Adj. EBITDA $ 451 2.8% Adj. EBITDA Margin 42.5% 10 bps (1) Organic revenue growth adjusts for FX translation and M&A activity, for a detailed definition see Appendix.
Slide 10: Integrated Financial Solutions
Integrated Financial Solutions REVENUE CONTRIBUTION ($ millions) First Organic Quarter Growth Banking and Wealth $ 503 5.7% Payments 351 (1.6)% Corporate and Digital 207 5.7% Total Integrated Financial Solutions(1) $ 1,061 3.2% (1) Amount may not sum due to rounding. For a description of non-GAAP me
Slide 11: Global Financial Solutions
Global Financial Solutions First Quarter (Q1) 2018 ($ millions) METRICS Q1 2018 Y-o-Y vs Q1 2017 Revenue $ 927 5.4% Organic(1) Adj. EBITDA $ 305 15.2% Adj. EBITDA Margin 32.9% 650 bps (1) Organic revenue growth adjusts for FX translation and M&A activity, for a detailed definition see Appendix. For
Slide 12: Global Financial Solutions
Global Financial Solutions REVENUE CONTRIBUTION ($ millions) First Organic Quarter Growth Institutional and Wholesale $ 500 6.0% Banking and Payments 427 4.8% Total Global Financial Solutions(1) $ 927 5.4% (1) Amount may not sum due to rounding. For a description of non-GAAP measures and a reconcili
Slide 13: Corporate and Other
Corporate and Other First Quarter (Q1) 2018 ($ millions) METRICS Q1 2018 Y-o-Y vs Q1 2017 Adj. Revenue $ 80 (14.1)% Organic(1) Adj. EBITDA $ (51) n/a Corporate Expense $ 67 (5.1)% (1) Organic revenue growth adjusts for FX translation and M&A activity, for a detailed definition see Appendix. For a de
Slide 14: Debt Review and Capital Allocation
Debt Review and Capital Allocation • Free cash flow was $226 million – Primarily impacted by one-time shift in tax payments and working capital – Both items contemplated in full-year forecast • Maintaining a strong balance sheet – $9.1 billion debt outstanding as of March 31, 2018 – Weighted average
Slide 15: Why Invest in FIS
Why Invest in FIS Continued High-Quality Double-Digit Strong Compelling Market Recurring EPS Growth Cash Flow Investment Leadership Revenue Generation Thesis 15
Slide 16: Appendix
APPENDIX His
Slide 17: Debt Summary
Debt Summary ($ millions) Dec. 31, Mar. 31, Rate 2017 2018 Revolver (2021 Maturity) L+125 bps $ 195 $ 475 Undrawn revolver capacity 15 bps 2,805 2,525 2018 Notes (April) (1) 2.000% 250 250 2018 Notes (October) 2.850% 750 750 2020 Notes (October) 3.625% 1,150 1,150 (2) 2021 EUR Notes (January) 0.400%
Slide 18: Forward-Looking Statements
Forward-Looking Statements This presentation and today’s webcast contain “forward-looking statements” within the meaning of the U.S. federal securities laws. Statements that are not historical facts, including statements about anticipated financial outcomes, including any earnings guidance of the Co
Slide 19: Forward-Looking Statements
Forward-Looking Statements • changes in the growth rates of the markets for our solutions; • failures to adapt our solutions to changes in technology or in the marketplace; • internal or external security breaches of our systems, including those relating to unauthorized access, theft, corruption or
Slide 20: Non-GAAP Financial Information and Reconciliation
Non-GAAP Financial Information and Reconciliation Generally Accepted Accounting Principles (GAAP) is the term used to refer to the standard framework of guidelines for financial accounting in the United States. GAAP includes the standards, conventions, and rules accountants follow in recording and s
Slide 21: Non-GAAP Financial Information and Reconciliation
Non-GAAP Financial Information and Reconciliation Adjusted revenue consists of revenue, increased to reverse the purchase accounting deferred revenue adjustment made upon the acquisition of SunGard. The deferred revenue adjustment represents revenue that would have been recognized in the normal cour
Slide 22: Non-GAAP Financial Information and Reconciliation
Non-GAAP Financial Information and Reconciliation Adjusted net earnings excludes the impact of certain costs and other transactions which management deems non- operational in nature, the removal of which improves comparability of operating results across reporting periods. It also excludes the impac
Slide 23: Organic Revenue Growth Calculation
Organic Revenue Growth Calculation First Quarter (Q1) 2018 ($ millions) Three months ended March 31, 2018 Integrated Global Financial Financial Corporate Solutions Solutions and Other Consolidated Revenue $ 1,061 $ 927 $ 78 $ 2,066 Non-GAAP adjustments: Acquisition deferred revenue adjustment - - 2
Slide 24: Reconciliation of GAAP to Non-GAAP Financials
Reconciliation of GAAP to Non-GAAP Financials ($ millions, unaudited) Three months ended March 31, 2018 2017 Net earnings attributable to FIS $ 182 $ 129 Provision (benefit) for income taxes 34 74 Interest expense, net 72 93 Other, net 6 (50) Operating income, as reported $ 294 $ 246 FIS depreciatio
Slide 25: Reconciliation of GAAP to Non-GAAP Financials
Reconciliation of GAAP to Non-GAAP Financials ($ millions, except per share data, unaudited) Three months ended March 31, 2018 2017 Earnings before income taxes and equity method investment earnings $ 225 $ 209 Provision (benefit) for income taxes 34 74 Equity method investment earnings (1) - Net ea
Slide 26: Reconciliation of GAAP to Non-GAAP Financials
Reconciliation of GAAP to Non-GAAP Financials ($ millions, unaudited) Three months ended March 31, 2018 2017 Net cash provided by operating activities $ 354 $ 454 Non-GAAP adjustments: Acquisition, integration and severance payments 27 17 Tax payments on divestitures 19 - Bond premium - 11 Settlemen
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