Aci Worldwide, Inc. · NASDAQ:ACIW
Aci Worldwide — Stephens Inc Spring Conference 2009
31 slides from Aci Worldwide's conference presentation, Jun 3, 2009
Slide 1: Stephens Inc Spring Conference June 3, 2009 New York City
Stephens Inc Spring Conference June 3, 2009 New York City
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- lo
Slide 3: Phil Heasley, Chief Executive Officer
Phil Heasley, Chief Executive Officer
Slide 4: Topics
Topics Our Product Portfolio Market Environment Customer by Type Geographic Channels Financial Metrics
Slide 5: ACI Product History
ACI Product History 1975 1982 1985 1990 1995 2000 2005 2008 BASE24-atm TRANS24 Payments Manager ICE Smart Chip Manager Proactive Risk Manager OCM24 MTS ASx Trade Finance Enterprise Banker ON/2 OpeN/2 Retail Banking Wholesale Banking Risk Management Tools & Infrastructure BASE24-eps Network Express A
Slide 6: ACI Product Portfolio
ACI Product Portfolio ACI Wholesale Payments Solution Payments Hub MTS-eps Online Banking ACI Enterprise Banker Trade Finance ACI Global Trade Manager ACI Open Account Manager Global Payments Processing ACI MTS - Money Transfer System ACI Payment File Manager ACI Common Infrastructure & Tools Automa
Slide 7: BASE24-eps
BASE24-eps Provides an end-to-end solution for the acquisition, authorization and recording of consumer based electronic payments High volume, high availability, multi-platform transaction processing engine Transaction acquiring: ATM, POS and interchange interfaces Device channel management: ATM and
Slide 8: PRM
PRM Provides an end-to-end solutions for real-time and enterprise payments risk management: Fraud Detection and Money Laundering Detection Transaction monitoring solution to detect fraudulent and money laundering activity Solutions offered for Enterprise, Debit/Credit card, Merchant and Anti-Money L
Slide 9: Enterprise Banker
Enterprise Banker An online banking product that supports all market segments, from consumer to large corporate customers Real-time and batch balance and transaction reporting, with images, online statements ACH origination, wire transfer origination and reporting, account transfers, stop payment, p
Slide 10: General Market Update
General Market Update Cost pressures on our customers lead to product sales opportunities Inefficient technologies and processes Exacerbated by M&A activity seen over past half year Heavy focus on compliance, fraud and risk management Good for the ACI hub multi-product solution sales Our Enterprise
Slide 11: Market Trends and Drivers
Market Trends and Drivers U.S. credit crisis leads to extreme focus on ROI, and accelerated M&A Continued desire to reduce costs and increase productivity Need for end-to-end solutions Need for platform and solutions convergence Need to automate manual, cumbersome processes ACI will drive customers
Slide 12: Customer Revenue by Industry Type
Customer Revenue by Industry Type We maintained a similar product line segmentation year-over-year Strong revenue from banks and processors in 2008 Growing activity in the retailer segment in the United States All product attrition for the year at extremely low rates of 4.2% Industry Type CY 2008 Re
Slide 13: Historic Sales By Quarter 2008-2009
Historic Sales By Quarter 2008-2009 3/31/2008 $63,813 $1,311 $9,621 $38,101 $14,781 2% 15% 60% 23% 6/30/2008 $99,938 $15,856 $23,487 $45,434 $15,160 16% 24% 45% 15% 9/30/2008 $106,594 $14,345 $7,180 $52,133 $32,936 13% 7% 49% 31% 12/31/2008 $189,337 $16,490 $17,014 $82,509 $73,324 9% 9% 44% 39% 3/31
Slide 14: 2009 Opportunities - Americas
2009 Opportunities- Americas North American Banks Top bank ATM systems currently on processors Hub consolidation and cross-sell Online banking consolidation Risk Management cross-sell and upsell Wholesale payments in Canada North American Retailers Replace redundant, fragmented legacy technologies P
Slide 15: 2009 Opportunities - EMEA
2009 Opportunities- EMEA BASE24-eps - Focus on Tier 1 migrations and new names Payments HUB consolidation opportunities Build Operate Transfer model creates opportunity during a difficult economic climate and with major M&A activity Wholesale focus on SEPA-express with market regulations driver, exp
Slide 16: 2009 Opportunities - Asia
2009 Opportunities- Asia North Asia is the growth opportunity Japan upgrading retail/wholesale infrastructure China banks looking for payment hubs & upgrade risk India volumes continue to grow Indian banks rapidly extend coverage in consumer payments Australia consolidates Drives urgency to implemen
Slide 17: Cost Management
Cost Management Annualized gross cost savings of $30 million achieved in 2008 Rationalized headcount in mature markets and reinvested in growth regions A further $8 million in cost savings which will complete restructuring in 2009 Approximately $11.5 million to be re-invested in products, services a
Slide 18: Financial Review
Financial Review Tamar Gerber, Vice President, Investor Relations
Slide 19: ACIW Quarterly Revenue by Type
ACIW Quarterly Revenue by Type 12% Recurring Revenue Growth between '07 & '08 4% ILF's & Capacity Revenue Growth between '07 & '08; Phasing of ILF's & Capacity driven mainly by Annual License Fee Revenue Recognition in Q4 time period 21% Implementation & Professional Svcs. Revenue Growth between '07
Slide 20: ACIW Annual Revenue by Type
ACIW Annual Revenue by Type ~ 55% of Total Revenue is Monthly Recurring Revenue ~ 45% of Total Revenue is generally split evenly between ILF's & Capacity and Implementation & Professional Services Revenue $374MM $418MM $415 - $425MM 6% CAGR (3 Yr.) In $ Thousands 211,048 236,106 91,667 94,999 71,496
Slide 21: ACIW Quarterly Revenue from Backlog vs. Sales
ACIW Quarterly Revenue from Backlog vs. Sales ~ 85% of Total Revenue is from Backlog ~ 15% of Total Revenue is from Current Quarter Sales In $ Thousands Total Revenue QE Mar07 QE Jun07 QE Sep07 QE Dec07 QE Mar08 QE Jun08 QE Sep08 QE Dec08 QE Mar09 From Backlog 71,470 76,743 81,484 88,108 80,883 97,6
Slide 22: EBITDA (Adjusted) Trending
EBITDA (Adjusted) Trending In $ Millions CY 2005 CY 2006 CY 2007 CY 2008 EBITDA 61.8 55.1 17.4 52.0 Non-Recurring Items Stock Options - - 2.6 9.2 - - Restructuring & Emp. Related - - - - 5.5 6.4 Corporate Jet Lease Term. - - - - 1.3 - - IBM Prof. Fees & Transition Exp. - - - - 0.5 6.5 LTIP Reversal
Slide 23: Operating Free Cash Flow 2007-08-09
Operating Free Cash Flow 2007-08-09 In $ Thousands 0 10,000 20,000 30,000 40,000 50,000 60,000 70,000 2007 Actual 2008 Actual 2009 Estimate ACIW Operating Free Cash Flow ex. IBM ACIW Operating Free Cash Flow $35 - $40MM $25 - $30MM $43MM $29MM $53MM $65MM 2007 Actual 2008 Actual 2009 Estimate GAAP C
Slide 24: Annual Guidance
Annual Guidance Annual Guidance Sizable term renewal expected to close in June or July Timing of both sales and revenues now anticipated in Q2 or Q3 depending on contract signing date of late June or early July Large account expiry date of July 2009 Annual guidance remains unchanged
Slide 25: Disciplined Capital Allocation
Disciplined Capital Allocation Objective: Allocate capital to optimize shareholder returns Organic Business Growth Acquisition Share Repurchase Program Internal Investments Geographic build out Product development Cost effectiveness Capital expenditures Bolt-on acquisitions and alliances aligned wit
Slide 26: Historical Capital Allocation
Historical Capital Allocation Capital deployed to support growth strategy and enhance shareholder returns (dollars in millions) Over the past four years, we have deployed cash and cash flow to fund our capital activities. We also entered into a $150 million credit facility ($75 million outstanding)
Slide 27: 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 28: Forward-Looking Statements (Continued)
Forward-Looking Statements (Continued) Any or all of the forward-looking statements may turn out to be wrong. They can be affected by the judgments and estimates underlying such assumptions or by known or unknown risks and uncertainties. Many of these factors will be important in determining our act
Slide 29: Forward-Looking Statements (Continued)
Forward-Looking Statements (Continued) The recent restatements of our financial statements; The consolidation in the financial services industry that may adversely impact the number of customers and revenues in the future; The economic changes in the banking and financial services industries, that a
Slide 30: Forward-Looking Statements (Continued)
Forward-Looking Statements (Continued) The possibility that if we are unable to successfully perform under the terms of our alliance with IBM or our customers are not receptive to the alliance, then our business, financial condition and/or results of operations may be adversely affected; Our outsour
Slide 31: NMI
NMI EVERY SECOND. EVERY DAY.