Aci Worldwide, Inc. · NASDAQ:ACIW
Aci Worldwide — Investor Day (November 2017)
73 slides from Aci Worldwide's investor day presentation, Nov 14, 2017
Slide 1: Any Payment. Every Possibility. Analyst Day 2017
ANY PAYMENT. EVERY POSSIBILITY. ANALYST DAY 2017
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-look
Slide 3: Welcome
John Kraft Vice President, Investor Relations and Strategic Analysis welcome
Slide 4: Agenda
CEO Perspective Financial Update Any Payment, Every Possibility Retail Payments Momentum Real-Time Payments Innovation Payments Intelligence Digital Banking Innovation Q&A Customer Panel AGENDA
Slide 5: Any Payment. Every Possibility.
ANY PAYMENT. EVERY POSSIBILITY. ANALYST DAY 2017
Slide 6: CEO Perspective
Phil Heasley President and CEO Ceo perspective
Slide 7: Our Vision
OUR VISION ACI is a highly focused and unified payments software enterprise that enables any-to-any payment transactions to occur regardless of time, location or type, supporting multi-party payments with the notion that the purchaser directs the payments to his/her provider of choice to satisfy the
Slide 8: Our Mission
OUR missioN ACI will lead the transformation of the global payments ecosystem to a real-time, any-to-any paradigm built on acclaimed intellectual property and delivered in the cloud by a team of highly dedicated and innovative payment professionals committed to our customers' success.
Slide 9: Key Elements of Our Strategy to Increase Customer Value
Non-Functional Requirements (NFRs) Key Elements of Our Strategy to Increase Customer Value Any Payment, Every Possibility Linux Building services and endpoints to achieve orchestration Highest quality, competitive differentiator Open, modern, low-cost platform
Slide 10: Building and Acquiring the Capabilities for Orchestration
35+ SERVICES 30+ ENDPOINTS Building and Acquiring the Capabilities for Orchestration 2006 ELECTRONIC PAYMENTS SYSTEMS Retail Payments P&H SOLUTIONS Business Online Banking 2005 S2 SYSTEMS Retail Payments 25+ SERVICES 20+ ENDPOINTS 2007 VISUAL WEB SOLUTIONS Cash Management Solutions for Asia 20+ SERV
Slide 11: Non-Functional Requirements Differentiate ACI
Differentiate ACI’s services, solutions and offerings Non-Functional Requirements Capacity 2000 TPS Availability 99.999% uptime Scalability Best-in-class operating cost Security Highly sophisticated protection from data breaches and unauthorized transactions Globality Support for industry-leading nu
Slide 12: High Quality, Low Cost Provider
High Quality, Low Cost Provider 43% savings vs. Oracle Systems, cTree 66% savings vs. Linux, Oracle 86% savings vs. HPE Non Stop, Enscribe 86% savings vs. IBM System-p, cTree 92% savings vs. IBM System-z, DB2 *For large customers (1,000 TPS average) Potential savings when switching to Linux + Postgr
Slide 13: Any Payment. Every Possibility.
ANY PAYMENT. EVERY POSSIBILITY. ANALYST DAY 2017
Slide 14: Financial Discussion
Scott Behrens Chief Financial Officer Financial discussion
Slide 15: P&L Financial Model Characteristics
Installed in our customers’ data centers globally Term software model ~ $600 million of revenue in 2017 ~ $300* million of EBITDA in 2017 40+ years of experience, long-term customer base with high renewal rates Installed in our global data centers SaaS and Platform model ~ $400 million of revenue in
Slide 16: Revenue Drivers
Execute UP Retail Payments solution (RPS) bridging customers to UP BASE24-eps New UP Real-Time Payments solution (RTPS) New bank and financial intermediary logos Cross-selling to existing customers Secular transaction growth New product releases with industry-leading non-functional requirements Harv
Slide 17: Profitability Drivers
Layer on new license and maintenance revenue on top of relatively fixed cost basis Increase implementation services productivity Improve maintenance margins Maintain low attrition Improve cost to operate cloud solutions Improve cost to acquire new logos Deliver high incremental margins through combi
Slide 18: Financial Summary – Five-Year Targets
Organic revenue growth Mid-to-upper single digits Adjusted EBITDA margin 100 bps expansion per year Operating free cash flow Track adjusted EBITDA growth New bookings growth High single digits Financial Summary – Five-Year Targets
Slide 19: Craig Saks, Chief Operating Officer
Craig Saks Chief Operating Officer Any payment, Every possibility.
Slide 20: Any Payment, Every Possibility
ANY PAYMENT, ES EVERY POSSIBILITY. |
Slide 21: Any Payment, Every Possibility
More Ways to Pay More Payment Capabilities Powerful Payments Orchestration Highest NFRs Any Payment, Every Possibility
Slide 22: ACI by the Numbers
ACI by the Numbers 6 Solutions 4 Segments 2 Deployment Options
Slide 23: 6 Solution Areas
Non-Functional Requirements Payments Intelligence Digital Channels ENDPOINTS Retail Payments Merchant Payments Real-Time Payments Bill Payments Technology 6 Solution Areas Services Orchestration, API and Endpoint Management
Slide 24: 6 Solution Areas (UP Product Names)
Non-Functional Requirements UP® Payments Risk Management™ Universal Online Banker™ 6.0 ENDPOINTS UP® Retail Payments™ UP® Real-Time Payments™ UP® Bill Payments™ Technology 6 Solution Areas Services Orchestration, API and Endpoint Management UP® eCommerce, UP® Merchant Payments™
Slide 25: 1.1T Addressable Transaction Market 2017
1.1T ADDRESSABLE TRANSACTION MARKET 2017 Financial Institutions 313B Financial Intermediaries 638B Merchants 174B Billers 6B 4 Segments
Slide 26: 1.6T Addressable Transaction Market 2022
1.6T ADDRESSABLE TRANSACTION MARKET 2022 Financial Institutions 500B Financial Intermediaries 825B Merchants 290B Billers 8B 4 Segments
Slide 27: 4 Segments
Financial Institutions Merchants Billers Financial Intermediaries 4 Segments
Slide 28: Distribution Options
2 Distribution Options On Premise Cloud
Slide 29: Employee Base, IP Base, Commitment to Customers
1 Employee Base 1 Intellectual Property Base 1 Commitment to Customers
Slide 30: Any Payment, Every Possibility
ANY PAYMENT, ES EVERY POSSIBILITY. |
Slide 31: Retail Payments Momentum
RETAIL Payments momentum Mandy Killam Executive Vice President ACI On Premise
Slide 32: Solution Areas: UP Retail Payments
Non-Functional Requirements UP Payments Risk Management Universal Online Banker 6.0 ENDPOINTS UP Retail Payments UP Real-Time Payments UP Bill Payments Technology Services Orchestration, API and Endpoint Management UP eCommerce, UP Merchant Payments
Slide 33: UP Retail Payments Solution Momentum
UP Retail Payments Solution Momentum
Slide 34: UP Retail Payment Solution Key Benefits
UP Retail Payment Solution Key Benefits Non-Functional Requirements Fast Open VALUE
Slide 35: UP Retail Payments Customer Successes
UP Retail Payments Customer Successes Offered digital services with FinTech ecosystem Connected APIs to deliver new payment offerings Standardized common processes across real-time and batch transactions 25+ million regional customers Top 60 global bank 41% of customers acquired digitally Top 20 glo
Slide 36: Solution Expands to Include Real-Time Payments
Solution Expands to Include Real-Time Payments ANY ENDPOINT DEFINED TRANSACTION SOURCES PSPs Banks Merchants Payment Types Central Infrastructure Schemes
Slide 37: API Management Enables Expansion to Broader Payments Ecosystem
API Management Enables Expansion to Broader Payments Ecosystem Developer community New financial services aggregator PSPs Banks Merchants Payment Types Central Infrastructure Schemes API MANAGER ANY ENDPOINT ANY SOURCE
Slide 38: Increasing Customer Value
Increasing Customer Value Non-Functional Requirements (NFRs) Expansion of Ecosystem Modern Technology
Slide 39: Real-Time Payments Innovation
WA Proctor Vice President, Product Line Manager Immediate Payments & Transaction Banking Real-time payments innovation
Slide 40: Solution Areas: UP Real-Time Payments
Non-Functional Requirements UP Payments Risk Management Universal Online Banker 6.0 ENDPOINTS UP Retail Payments UP Real-Time Payments UP Bill Payments Technology Services Orchestration, API and Endpoint Management UP eCommerce, UP Merchant Payments
Slide 41: UP Real-Time Payments Strategy
Four key pillars of our strategy UP Real-Time Payments Strategy RTGS plus immediate payments Additional Central Infrastructure endpoints On premise and cloud distribution Expanded partner ecosystem
Slide 42: Expansion of Immediate Payments
UP BILLPAYMENT UNIVERSAL ONLINE BANKER UP eCOMMERCE UP RETAIL PAYMENTS Expansion of Immediate Payments ORIGINATION AND RECEIPT Cloud On Premise IMMEDIATE PAYMENTS
Slide 43: UP Real-Time Payments Solution
UP Real-Time Payments Solution UP BILL PAYMENT UNIVERSAL ONLINE BANKER UP eCOMMERCE UP RETAIL PAYMENTS TRADE SYSTEMS TREASURY SYSTEMS CASH MANAGEMENT UP REAL-TIME PAYMENTS SOLUTION API MANAGER RTGS ACH Immediate Payments Money Transfer System Cloud On Premise
Slide 44: Real-Time Payments Around the Globe
Real-Time Payments Around the Globe Heritage Real-Time Planned go live in 2017-2018 In discussion or design
Slide 45: Real-Time Payments Around the Globe
Real-Time Payments Around the Globe Heritage Real-Time Planned go live in 2017-2018 In discussion or design
Slide 46: Partner Stories
Partner Stories 40+ banks in Malaysia to connect to scheme, pan ASEAN strategy for expansion 300+ banks in France and Belgium – SWIP to provide pan-EU connections to ECB TIPS and EBA
Slide 47: Payments Intelligence
Mike Braatz Senior Vice President, Business Leader Payments intelligence
Slide 48: Solution Areas: UP Payments Risk Management
Non-Functional Requirements UP Payments Risk Management Universal Online Banker 6.0 ENDPOINTS UP Retail Payments UP Real-Time Payments UP Bill Payments Technology Services Orchestration, API and Endpoint Management UP eCommerce, UP Merchant Payments
Slide 49: Investing in Payments and Fraud Data for Real-Time Decisions
Investing in payments and fraud data for real-time decisions ACI Payments Intelligence Fraud / Risk Authorization Intelligent Routing Big Data Engine Analytics Engine Transactions Demographics Profiles Global Consortia 3rd Party Data … Personalization Loyalty / Rewards / Offers
Slide 50: Next-Gen Real-Time Fraud Prevention
Next-gen real-time fraud prevention UP Payments Risk Management Solution Card Present/ DDA Card Not Present COMMON PLATFORM OF SHARED SERVICES/DATA Service packs: packaged and configured into solutions based on market/customer need Analytics: predictive analytics & big data capable Performance: high
Slide 51: Next-Gen Differentiators
Next-Gen Differentiators DEPLOYMENT FLEXIBILITY REAL-TIME TRANSACTION PATH ANALYTICS & DATA PAYMENTS INTEGRATION SHARED INTELLIGENCE On-premise or in the cloud AI and adaptive machine learning Payments and fraud Global fraud insights Fraud screening in real-time Built upon ACI’s Non-Functional Requi
Slide 52: ACI Fraud Ecosystem
ACI Fraud Ecosystem Clients / Segments Processor/ Intermediary Bank/Issuer Merchant External Data Partner Enabled MicroServices Data Providers Capabilities Service Providers Proactive Risk Manager ReD Shield Next Gen Capabilities Fraud Engines Cloud On-prem Deployment Options Merchant Fraud Consorti
Slide 53: Investment Value: ACI Business Benefits
Investment Value: ACI Business Benefits Improved Margins High Volume Scalability Shared Architecture Fixed Cost Base UP Payments Risk Management Solution
Slide 54: Investment Value: Customer Benefits Realized
Investment Value: Customer Benefits Realized Doubling of TPS capacity 50% improvement in response time Accelerating shift from rules to analytics Latency improvement by 100% UP Payments Risk Management Solution
Slide 55: Expanding Global Footprint for Fraud
Expanding Global Footprint for Fraud 350+ direct customers 5,000+ indirect customers Millions of payments protected daily
Slide 56: UP Payments Risk Management Opportunity
UP Payments Risk Management Opportunity Intelligence Value
Slide 57: Digital Banking Innovation
Digital Banking Innovation Mike Braatz Senior Vice President, Business Leader
Slide 58: Solution Areas: Universal Online Banker
Non-Functional Requirements UP Payments Risk Management Universal Online Banker 6.0 ENDPOINTS UP Retail Payments UP Real-Time Payments UP Bill Payments Technology Services Orchestration, API and Endpoint Management UP eCommerce, UP Merchant Payments
Slide 59: Bank Marketplace Challenges
Bank Marketplace Challenges Offering APIs to bank’s customers presents new sources of revenue Increased scrutiny from regulators and shareholders necessitates that banks operate more efficiently, reduce costs and reduce number of vendor relationships Small business customers need more sophisticated
Slide 60: Addressing Marketplace Challenges: Universal Online Banker 6.0
Addressing Marketplace Challenges Universal Online Banker 6.0 USER INTERFACE TRANSFORMATION Responsive/adaptive web design Simplification API BANKING Service enablement of all functionality Partner ecosystem MOBILITY Hybrid mobile application Leverage capabilities of device IMMEDIATE PAYMENTS Initia
Slide 61: U.S. Cash Management Vendor Evaluation Report, 2016
U.S. Cash Management Vendor Evaluation Report, 2016 Focus on User Experience UOB clients often praise the solution’s overall usability, its breadth of functionality, and its high levels of customization...another client reference speaks highly of the solution’s wire and ACH navigation, approval leve
Slide 62: Greenwich Associates Digital Banking Benchmarking Study
Greenwich Associates Digital Banking Benchmarking Study - 2016 ACI scores above the top of the peer group range on seven out of nine high level factors. ACI ranks first on a number of factors weighted ‘5’ or most important, including: Online Help / Support, User Administration/ Entitlements, User Au
Slide 63: Commercial Banking Leaders Rely On ACI
Commercial Banking Leaders Rely On ACI
Slide 64: MB Financial Selects Universal Online Banker
Bank wins ACI Innovation Award MB Financial Selects Universal Online Banker
Slide 65: Demonstration
Mike Braatz Senior Vice President, Business Leader DEMONSTRATION Raj Vaidyanathan Vice President, Product Development Eve Aretakis Executive Vice President, Product Development
Slide 66: Universal Online Banker and ACI Wholesale Banking Solutions
Universal Online Banker ACI Wholesale Banking Solutions UP Framework Money Transfer System DDA Loan CIF Image Immediate Payments API access Browser access Mobile access
Slide 67: Universal Online Banker 6.0
Universal Online Banker 6.0 Robert Williams ~ WORLD FINANCIAL C% DASHBOARD op rasvaiger 6) 2 ACCOUNT BALANCES cstcoast~ {2% BALANCES CHART o Investments © Current Available current edger ations Money Market $7779.00 ] overnight sweep 55161136 5111800 i] checking 4 current Available Curren Ledger tio
Slide 68: Universal Online Banker 6.0
a Universal Online Banker 6.0 PAYMENT CENTER TEMPLATE CENTER, Template Name a. 2 ALL PENDING rr = = = JACI piers:
Slide 69: Q&A
Q&A Phil Heasley President and CEO Scott Behrens Chief Financial Officer Craig Saks Chief Operating Officer
Slide 70: Customer Panel 2017
Carolyn Homberger Group President, Global Sales ACI Worldwide Customer panel 2017 Keith Gray Vice President The Clearing House Shawn Griffin Senior Vice President MB Financial Bank Moderator Panelists Diego Manocchio Chief Information Officer Red Link Virginia Sills Fraud Prevention Analyst IKEA
Slide 71: Any Payment. Every Possibility.
ANY PAYMENT. EVERY POSSIBILITY. ANALYST DAY 2017
Slide 72: Non-GAAP Financial Measures
To supplement our financial results presented on a GAAP basis, we use the non-GAAP measures indicated in the tables, which exclude significant transaction related expenses, as well as other significant non-cash expenses such as depreciation, amortization, and non-cash compensation, that we believe a
Slide 73: 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 “believes,” “will,” “expects,” “a