Fidelity National Information Services, Inc. · NYSE:FIS
Fidelity National Information Services — Q3 2015 Earnings Presentation
27 slides from Fidelity National Information Services's earnings presentation, Nov 3, 2015
Slide 1: Third Quarter 2015 Earnings Call
Third Quarter 2015 Earnings Call November 3, 2015 ©2015 FIS and/or its subsidiaries. All Rights Reserved.
Slide 2: Agenda
Agenda TOPIC SPEAKER 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 future
Slide 4: Business Summary
Business Summary Gary Norcross President and CEO
Slide 5: Q3 2015 Highlights
Q3 2015 Highlights • $1.6 BILLION revenue; up 3% on a constant currency basis • $0.90 adjusted EPS; up 15% on a constant currency basis • $73 MILLION returned to shareholders in the form of dividends –$220 million in dividends paid year-to-date For a description of non-GAAP measures and a reconcilia
Slide 6: Consistent Execution of Strategy
Consistent Execution of Strategy • Investing for GROWTH • MAINTAINING a strong balance sheet • Returning cash to our SHAREHOLDERS 6
Slide 7: Financial Summary
FINANCIAL SUMMARY Woody Woodall Chief Financial Officer
Slide 8: Consolidated Results
Consolidated Results ($ millions, adjusted, except per share data) METRICS Q3 Nine Months Revenue $ 1,579 $ 4,720 Reported Growth -1.7% -0.3% Constant Currency Growth 2.8% 3.5% EBITDA $ 530 $ 1,409 Reported Growth 8.7% 0.5% Constant Currency Growth 11.8% 2.9% EBITDA Margin 33.6% 29.8% Net Earnings $
Slide 9: Integrated Financial Solutions
Integrated Financial Solutions ($ millions, adjusted) METRICS Q3 Nine Months Revenue $ 971 $ 2,909 Reported Growth 0.7% 1.0% EBITDA $ 408 $ 1,164 Reported Growth 5.7% 1.6% EBITDA Margin 42.0% 40.0% For a description of non-GAAP measures and a reconciliation of GAAP to non-GAAP measures, see Appendix
Slide 10: Integrated Financial Solutions
Integrated Financial Solutions Revenue Contribution – Q3 & YTD Revenue Composition – YTD ($ millions) RECURRING REVENUE | 89% Q3 GROWTH YTD GROWTH PROFESSIONAL SERVICES | 7% Payment Solutions $ 403 -1% $ 1,221 -3% SOFTWARE | 1% Business Solutions 280 2% 845 4% OTHER | 3% Banking Solutions 287 2% 843
Slide 11: Global Financial Solutions
Global Financial Solutions ($ millions, adjusted) METRICS Q3 Nine Months Revenue $ 609 $ 1,815 Reported Growth -5.2% -2.2% Constant Currency Growth 5.9% 7.4% EBITDA $ 157 $ 370 Reported Growth 11.3% -0.7% Constant Currency Growth 23.4% 9.8% EBITDA Margin 25.8% 20.4% For a description of non-GAAP mea
Slide 12: Global Financial Solutions
Global Financial Solutions Revenue Contribution – Q3 & YTD Revenue Composition – YTD ($ millions, Constant Currency) RECURRING SOLUTIONS & SERVICES REVENUE (2) | 70% CC CC YTD Q3 GROWTH GROWTH North America $ 268 -7% $ 820 -4% CONSULTING / PROFESSIONAL SERVICES | 29% Europe 220 17% 632 19% Latin Ame
Slide 13: Capital Allocation Strategy
Capital Allocation Strategy • Completed financing for SunGard transaction – Issued $4.5B in senior notes – Received commitments for $1.5B in new term loans – Existing revolver will provide remainder of cash proceeds in order to close – Amount raised allows us to retire the existing SunGard notes • R
Slide 14: Investing in growth, market leadership, shareholder returns
INVESTING in growth MARKET leadership Committed to delivering superior SHAREHOLDER RETURNS 14
Slide 15: Appendix
APPENDIX
Slide 16: Debt Summary
Debt Summary ($ in millions) Sep 30, Dec 31, Rate 2015 2014 Revolver (2019 Maturity) (1) L+125 bps $ 705 $ 795 Undrawn revolver capacity 15 bps 2,295 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%
Slide 17: Forward-Looking Statements
Forward-Looking Statements This news release 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 18: Forward-Looking Statements
Forward-Looking Statements • changes in general economic, business and political conditions, including the possibility of intensified international hostilities, acts of terrorism, and changes in either or both the United States and international lending, capital and financial markets; • the effect o
Slide 19: 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 20: 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 the current year. Growth in revenue presented for 2015 year to date on a constant currency basis reflects a comparison of constant curre
Slide 21: Definitions of Non-GAAP Financial Measures (continued)
Definitions of Non-GAAP Financial Measures (continued) Adjusted net earnings from continuing operations excludes the after tax impact of certain costs and other transactions which management deems non-recurring or unusual in nature, the removal of which improves comparability of operating results ac
Slide 22: 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 September 30, 2015 Acquisition, Integration, and Sale of Purchase Severance Gaming Price GAAP Costs Contracts Subtotal Amort. Non-GAAP Processing and services revenue $ 1,578.8
Slide 23: Reconciliation of GAAP to Non-GAAP Financial Measures
Reconciliation of GAAP to Non-GAAP Financial Measures ($ in Millions, Except Per Share Data, Unaudited) Acquisition, Nine Months Ended September 30, 2015 Integration, and Sale of Purchase Severance Gaming Global Price GAAP Costs Contracts Restructure Subtotal Amort. Non-GAAP Processing and services
Slide 24: Reconciliation of GAAP to Non-GAAP Financial Measures
Reconciliation of GAAP to Non-GAAP Financial Measures ($ in Millions, Unaudited) Three Months Ended September 30, 2015 Integrated Global Corporate Financial Financial and Other Consolidated Solutions Solutions Processing and services revenue $ 970.7 $ 609.1 $ (1.0) $ 1,578.8 Operating income (loss)
Slide 25: Reconciliation of GAAP to Non-GAAP Financial Measures
Reconciliation of GAAP to Non-GAAP Financial Measures ($ in Millions, Unaudited) Nine Months Ended September 30, 2015 Integra ted Gl oba l Corpora te Fi na nci a l Fi na nci a l a nd Other Cons ol i da ted Sol utions Sol utions Proces s i ng a nd s ervi ces revenue $ 2,908.5 $ 1,814.9 $ (3.0) $ 4,72
Slide 26: Constant Currency Revenue Growth Calculation
Constant Currency Revenue Growth Calculation Third Quarter ($ in millions) 2015 2014 Constant Reported Constant Reported FX Currency Revenue Growth Integrated Financial Solutions $ 970.7 $ 0.3 $ 971.0 $ 963.6 0.8% Global Financial Solutions 609.1 70.9 680.0 642.2 5.9% Corporate (1.0) - (1.0) (0.5) n
Slide 27: Constant Currency Revenue Growth Calculation
Constant Currency Revenue Growth Calculation Nine Months ($ in millions) 2015 2014 Constant Reported Constant Reported FX Currency Revenue Growth Integrated Financial Solutions $ 2,908.5 $ 1.6 $ 2,910.1 $ 2,878.5 1.1% Global Financial Solutions 1,814.9 178.7 1,993.6 1,856.3 7.4% Corporate (3.0) (0.3
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