Fidelity National Information Services, Inc. · NYSE:FIS
Fidelity National Information Services — Q1 2015 Earnings Presentation
28 slides from Fidelity National Information Services's earnings presentation, Apr 30, 2015
Slide 1: First Quarter 2015 Earnings Call
First Quarter 2015 Earnings Call April 30, 2015 ©2013 FIS and/or its subsidiaries. All Rights Reserved.
Slide 2: Agenda
Agenda TOPIC SPEAKER Q1 Results and Gary Norcross, Market Review 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 future
Slide 4: Q1 2015 Results
Q1 2015 RESULTS Gary Norcross President and CEO
Slide 5: Q1 2015 Highlights
Q1 2015 Highlights • $1.6 BILLION revenue; up 5% on a constant $1.6B currency basis (Reported) • $0.65 adjusted EPS Revenue $1.4B • $214 MILLION free cash flow • $223 MILLION returned to Q1 2012 Q1 2013 Q1 2014 Q1 2015 shareholders For a description of non-GAAP measures and a reconciliation of GAAP
Slide 6: Market Review
Market Review Integrated Financial Solutions Global Financial Solutions • U.S. financial institutions • Large global and international clients • Comprehensive outsourced solutions • Recurring services led by intellectual property • High recurring revenue • Consulting • Significant cash flow generati
Slide 7: Consistent Execution of Strategy
Consistent Execution of Strategy • Investing for GROWTH • MAINTAINING a strong balance sheet • Returning cash to our SHAREHOLDERS 7
Slide 8: Financial Summary
FINANCIAL SUMMARY Woody Woodall Chief Financial Officer
Slide 9: Consolidated Results
Consolidated Results First Quarter ($ millions, adjusted, except per share data) METRICS 2015 2014 Revenue $ 1,555 $ 1,529 Reported Growth 2% Constant Currency Growth 5% EBITDA $ 425 $ 448 Growth -5% EBITDA Margin 27.4% 29.3% Net Earnings $ 186 $ 199 EPS $ 0.65 $ 0.68 For a description of non-GAAP m
Slide 10: Integrated Financial Solutions
Integrated Financial Solutions First Quarter ($ millions, adjusted) METRICS 2015 2014 Revenue $ 969 $ 946 Reported Growth 2% EBITDA $ 379 $ 381 EBITDA Margin 39.1% 40.2% For a description of non-GAAP measures and a reconciliation of GAAP to non-GAAP measures, see Appendix. 10
Slide 11: Integrated Financial Solutions
Integrated Financial Solutions Revenue Contribution – Q1 Revenue Composition – Q1 ($ millions) RECURRING REVENUE | 89% PROFESSIONAL SERVICES | 8% Q1 GROWTH Payment Solutions $ 403 -4% SOFTWARE | 1% Business Solutions 286 4% OTHER | 2% Banking Solutions 280 12% Total Integrated Solutions $ 969 2% Key
Slide 12: Global Financial Solutions
Global Financial Solutions First Quarter ($ millions) METRICS 2015 2014 Revenue $ 587 $ 584 Reported Growth 1% Constant Currency Growth 8% EBITDA $ 90 $ 105 EBITDA Margin 15.4% 18.0% For a description of non-GAAP measures and a reconciliation of GAAP to non-GAAP measures, see Appendix. 12
Slide 13: Global Financial Solutions
Global Financial Solutions Revenue Contribution – Q1 Revenue Composition – Q1 ($ millions, Constant Currency) RECURRING SOLUTIONS & CC SERVICES REVENUE (1) | 73% Q1 GROWTH CAPCO | 17% North America $ 275 1% Europe 192 16% Latin America 103 1% SOFTWARE | 2% Asia / Pacific 62 45% OTHER | 8% Total Glob
Slide 14: Executing Capital Allocation Strategy
Executing Capital Allocation Strategy • Re-investing in the business – Innovation – Product and market expansion • Returning cash to shareholders – $223 million returned to shareholders in Q1: • $150 million in share repurchases • $73 million in dividends • Maintaining a strong balance sheet – $5.2
Slide 15: 2014 to 2015 Revenue Growth
2014 to 2015 Revenue Growth 15
Slide 16: INVESTING in growth MARKET leadership Committed to delivering superior SHAREHOLDER
INVESTING in growth MARKET leadership Committed to delivering superior SHAREHOLDER RETURNS 16
Slide 17: Appendix
APPENDIX
Slide 18: Integrated Financial Solutions
Integrated Financial Solutions Solutions and Services BANKING SOLUTIONS BUSINESS SOLUTIONS PAYMENT SOLUTIONS • Core Processing • Card Personalization • Credit • Regulatory and • Treasury and Cash • Debit Compliance Solutions Management • Prepaid • Wealth Solutions • Back Office Services • Bill Payme
Slide 19: Global Financial Solutions
Global Financial Solutions Solutions and Services North America Europe Latin America Asia / Pacific • Core Banking • Core Banking • Core Banking • Core Banking Solutions Solutions Solutions Solutions • Consulting • Consulting • Payment Solutions • Consulting • Payment Solutions • Payment Solutions •
Slide 20: Debt Summary
Debt Summary ($ in millions) Mar 31, Dec 31, Rate 2015 2014 Revolver (2019 Maturity) L+125 bps $ 925 $ 795 Undrawn revolver capacity 15 bps 2,075 2,205 Term Loan (2017 Maturity) L+125 bps 1,300 1,300 2017 Notes 1.450% 300 300 2018 Notes 2.000% 250 250 2022 Notes 5.000% 700 700 2023 Notes 3.500% 1,00
Slide 21: 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. GAAP includes the standards, conventions, and rules accountants follow in recording and summarizing transactio
Slide 22: Definitions of Non-GAAP Financial Measures
Definitions of Non-GAAP Financial Measures Constant currency revenue is reported revenue excluding the impact of fluctuations in foreign currency exchange rates in 2015. Growth in revenue presented on a constant currency basis reflects a comparison of constant currency revenue for 2015 against 2014
Slide 23: Definitions of Non-GAAP Financial Measures (continued)
Definitions of Non-GAAP Financial Measures (continued) Adjusted net earnings from continuing operations (2015 comparative data) excludes the after tax impact of certain acquisition, integration and severance costs, certain restructuring and other severance costs associated with the reorganization of
Slide 24: Reconciliation of GAAP to Non-GAAP Financial Measures
Reconciliation of GAAP to Non-GAAP Financial Measures ($ in Millions, Except Per Share Data, Unaudited) Three Months Ended March 31, 2015 Acquisition, Integration, and Purchase Global Severance Price GAAP Restructure Costs Subtotal Amort. Non-GAAP Processing and services revenue $ 1,554.8 $ — $ — $
Slide 25: Reconciliation of GAAP to Non-GAAP Financial Measures
Reconciliation of GAAP to Non-GAAP Financial Measures ($ in Millions, Except Per Share Data, Unaudited) Three Months Ended March 31, 2014 Purchase Contract Price GAAP Settlement Subtotal Amort. Non-GAAP Processing and services revenue $ 1,520.3 $ 9.0 $ 1,529.3 $ — $ 1,529.3 Cost of revenues 1,044.4
Slide 26: Reconciliation of GAAP to Non-GAAP Financial Measures
Reconciliation of GAAP to Non-GAAP Financial Measures ($ in Millions, Unaudited) Three Months Ended March 31, 2015 Integrated Global Financial Financial Corporate Solutions Solutions and Other Consolidated Processing and services revenue $ 968.9 $ 586.9 $ (1.0) $ 1,554.8 Operating income (loss) $ 32
Slide 27: Supplemental Non-GAAP Cash Flow Measures
Supplemental Non-GAAP Cash Flow Measures ($ in Millions, Unaudited) First Quarter 2015 2014 Net cash provided by operating activities $ 231.1 $ 222.6 Settlement Activity 54.3 (2.5) Capco Acquisition Related Payments 29.3 28.0 Adjusted Cash Flow from Operations $ 314.7 $ 248.1 Capital Expenditures (1
Slide 28: Constant Currency Revenue Growth Calculation
Constant Currency Revenue Growth Calculation First Quarter ($ in millions) 2015 2014 Constant Adjusted Constant Reported FX Currency Revenue Growth Integrated Financial Solutions $ 968.9 $ 0.8 $ 969.7 $ 946.2 2.5% Global Financial Solutions 586.9 44.9 631.8 583.5 8.3% Corporate (1.0) (0.1) (1.1) (0.
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