Aci Worldwide, Inc. · NASDAQ:ACIW
Aci Worldwide — Wedbush Morgan Securities Management Access Conference 2009
37 slides from Aci Worldwide's conference presentation, Mar 12, 2009
Slide 1: Wedbush Morgan Securities Management Access Conference
Wedbush Morgan Securities Management Access Conference March 12, 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: Ron Totaro, Chief Operating Officer Business Review
Ron Totaro, Chief Operating Officer Business Review
Slide 4: Topics
Topics Our Product Portfolio Market Environment Customer by Type Sales Results 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: SOA-based solution and architecture
SOA-based solution and architecture Convergence of Wholesale, Retail and Risk Management Payment services Easy integration with the financial institution's enterprise infrastructure Long-term vision for ACI and ACI customers Over time, business functions in current products will be composed into com
Slide 8: 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 9: 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 10: 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 11: Base Classic Sunset Announced in 2008
Base 24 Classic Sunset Announced in 2008 SUNSET was announced in March 2008 Not End-of-Life announcement Sunset will be effective in November 2011 Sunset means: Standard maintenance will increase significantly We still fix product defects Enhancements must be customer-funded Mandates must be custome
Slide 12: BASE24-eps - Ready for Primetime
BASE24-eps - Ready for Primetime Licensed over 70 times (new accounts, new apps) Live over 35 times Live in many different operating environments ATM driving, merchant acquiring, switching, merchant retail, multi-channel Live on all of our supported platforms And now, with version 8.2, optimized for
Slide 13: In 2008 we began moving towards a Hub Strategy
In 2008 we began moving towards a Hub Strategy Example: A Retail Payments Hub Integrated Retail Payments Processing Hub Internal Bank Host Systems CIF/CRM Revolving Credit Prepaid Cust Service Brokerage DDA External Networks and Hosts Transaction Acquiring Integrated Fraud Detection Authorization an
Slide 14: General Market Update
General Market Update Financial crisis has spread to most markets Cost pressures on our customers 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 Ent
Slide 15: 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 16: 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 Contraction in the 'other' category led by loss of large Canadian processing deal in 2007
Slide 17: Q4 2008 Sales Results
Q4 2008 Sales Results Q4 2008 demonstrated strong add on / term renewals sales performance compared to last year Positive pricing gains in add-on business and term extensions in this quarter as evidenced by growth in retail payments Top 5 customers accounted for 45% of sales performance in the quart
Slide 18: Historic Sales By Quarter 2007-2008
Historic Sales By Quarter 2007-2008 Historic Sales By Quarter 2007-2008
Slide 19: Americas Q4/Year in Review
Americas Q4/Year in Review Q4 Revenue of $57.8 million, an increase of 16% over Q4 2007 driven by two large term renewals Annual revenue of $207.4 million, an increase of 5% over prior year Sales in the year were very strong New business sales up 14% year-over-year Term extension sales flat although
Slide 20: 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 21: EMEA Q4/Year in Review
EMEA Q4/Year in Review Q4 Revenue of $39.5 million, a decrease of 8% over Q4 2007 revenue of $43.1 million largely due to FX impact of approximately $5-6 million Q4 Major Term Extensions in Italy and Slovakia Q4 Large Services deals at El Corte Ingles and HBOS for Base24-eps Annual Revenue of $169.0
Slide 22: 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 23: Asia-Pacific Q4/Year in Review
Asia-Pacific Q4/Year in Review Q4 revenue of $12.0 million, an increase of 40% due to wholesale service customers Term extension contracts signed for AP's 2 largest revenue customers. Two new customers - 1st PRM license on IBM System Z in the world Significant capacity contracts in China, India, Kor
Slide 24: 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 25: 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 26: Financial Review
Financial Review Tamar Gerber, Vice President, Investor Relations
Slide 27: Financials - Year in Review
Financials- Year in Review Financials- Year in Review Revenues up 12% on very strong term extensions and add-on sales and in spite of FX depreciation of revenue in European currencies Expenses up 6% Better than our 7-8% guidance given in March 2008 Favorably impacted in EMEA by currency exchange rat
Slide 28: Backlog is Still a Significant Contributor to Current Period Revenue
Backlog is Still a Significant Contributor to current period Revenue Larger reliance on term renewals as a percentage of revenue on a year- over-year basis Rise in revenue contributed by current period sales was due to ILFs and capacity related to large retail system term renewals and add-on sales 6
Slide 29: OFCF Walk Q4 2007 vs Q4 2008
OFCF Walk Q4 2007 vs Q4 2008 Cash Receipts Stronger AR management plus strong Latin American cash collections Increase in recurring monthly license fees largely due to de-emphasis on PUF deals across the business Payroll expenditures benefit from restructuring IBM IT Outsourcing use of cash in 2008
Slide 30: Operating Free Cash Flow 2007-08-09
Operating Free Cash Flow 2007-08-09 Operating Free Cash Flow 2007-08-09 In $ Thousands In $ Thousands
Slide 31: Performance versus 2008 Guidance
Performance versus 2008 Guidance Exceeded OFCF expectations due to Stronger than expected cash collections on a global basis $3 million tax refund in Canada Achieved $460 million in sales Signed $189 million of business in Q4, term renewals came in larger and earlier than expected, primarily in the
Slide 32: 2009 Guidance
2009 Guidance Sales Flat to slightly down compared to prior year using constant budgeted FX rates from September 2008. FX Impact Beneficial to operating income percentage Revenue Growth rate excluding FX impact would have been 3-5% GAAP Operating Income Operating income to achieve 8-10% up from 5-6%
Slide 33: 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 34: Forward-Looking Statements
Forward-Looking Statements 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 the Company's actua
Slide 35: Forward-Looking Statements
Forward-Looking Statements Risks associated with the restatement of the Company's financial statements; Risks associated with the Company's performance which could be materially adversely affected by a general economic downturn or lessening demand in the software sector; Risks associated with the co
Slide 36: Forward-Looking Statements
Forward-Looking Statements Risks associated with the outsourcing arrangement with IBM which may not achieve the level of savings that we anticipate and, because the arrangement involves changes in systems and personnel, may expose the Company to operational and control risks which could adversely af
Slide 37: Every Second. Every Day.
IMG EVERY SECOND. EVERY DAY.
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