Fidelity National Information Services, Inc. · NYSE:FIS

Fidelity National Information Services — Q4 2024 Earnings Presentation

43 slides from Fidelity National Information Services's earnings presentation, Feb 11, 2025

  1. Slide 1: Fourth Quarter 2024 Earnings Call

    Fourth Quarter 2024 Earnings Call February 11, 2025

  2. Slide 2: Speakers

    Speakers Fourth Stephanie Ferris 1 Quarter Chief Executive Officer and President Highlights Financial James Kehoe 2 Results & Chief Financial Officer Outlook 2

  3. 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 futur

  4. Slide 4: Fourth Quarter Highlights

    Fis Fourth Quarter Highlights

  5. Slide 5: Full Year 2024 Highlights

    Full Year 2024 Highlights STRATEGY FINANCIAL RESULTS HIGHLIGHTS Leveraging Our Strong Foundation +4% Adjusted • Strong new sales supporting revenue acceleration in 2025 Revenue Growth Executing to Deliver Profitable Growth +64 bps Adjusted EBITDA • Simplifying operations and improving profitability

  6. Slide 6: Marquee Wins and Awards

    Marquee Wins and Awards MONEY AT REST MONEY IN MOTION MONEY AT WORK Record Year of Core Wins Next Generation Payments Cross-Sell Momentum Top Regional Bank IBS Core BNPL on Debit Transfer Agency Gartner 6

  7. Slide 7: Launching Office of the CFO

    Launching Office of the CFO Comprehensive Suite of Technology Solutions Helping CFOs Modernize Finance Functions • Need to modernize finance functions Role of the CFO is Expanding • Rationalizing costs while managing compliance • $25B+ global market boasting double-digit growth(1) Attractive TAM • C

  8. Slide 8: Looking Forward

    Looking Forward INNOVATION CLIENT-CENTRICITY Best-in-class assets Ensuring clients makes FIS the destination are at the center of for innovation everything we do SIMPLIFICATION Simplifying operations to accelerate time-to-market 8

  9. Slide 9: Financial Results and Outlook

    Financial Results and Outlook 9

  10. Slide 10: 4Q 2024 Financial Results

    4Q 2024 Financial Results Results Total Revenue Adj. EBITDA Margin Adjusted EPS 2.6B 42.9% $1.40 +4% Adjusted +103 bps +49% Reported +9% Normalized Key Metrics Adj. Free Cash Flow CapEx Capital Return Balance Sheet (as of 12/31/2024) $702M $189M $1.2B $11.3B 2.65x 2.8% 110% Conversion(1) 7% of Reven

  11. Slide 11: Banking & Capital Markets Financial Results (4Q 2024)

    Banking & Capital Markets Financial Results 4Q 2024 Results Total Revenue Adjusted Revenue Recurring Revenue % Revenue Recurring $2.5B +4% +2% 78% Banking Solutions Capital Markets Revenue Growth +1% Revenue Growth +7% +2% Recurring Revenue +9% Recurring Revenue Adjusted (3)% Adjusted +16% Other Non

  12. Slide 12: Banking & Capital Markets Financial Results (FY 2024)

    Banking & Capital Markets Financial Results FY 2024 Results Total Revenue Adjusted Revenue Recurring Revenue % Revenue Recurring $9.9B +4% +4% 80% Banking Solutions Capital Markets Revenue Growth +3% Revenue Growth +7% +2% Recurring Revenue +7% Recurring Revenue Adjusted (3)% Adjusted +14% Other Non

  13. Slide 13: FY 2025 Outlook

    FY 2025 Outlook 2025 Outlook is Aligned with Investor Day Goals INVESTOR DAY FY 2025 OUTLOOK Adj. Revenue Growth (%) 4.5% - 5.5% 4.6% - 5.2% Accelerating over 2 years Adj. EBITDA Margin Expansion (bps) 40 - 60 bps 40 - 45 bps Lower-End Adj. EPS Growth (%) 9% - 12% 9% - 11% Leverage Ratio(1) 2.8x 2.8

  14. Slide 14: 1Q & FY 2025 Outlook

    1Q & FY 2025 Outlook METRICS ($ millions, except per share data) 1Q 2025 FY 2025 FY 2025 GROWTH DRIVERS REVENUE $2,485 - $2,510 $10,435 - $10,495 Banking ADJ. REVENUE GROWTH 2.5% - 3.5% 4.6% - 5.2% • Commercial excellence driving acceleration • 1Q 2025 reflects tough prior year comparison of Banking

  15. Slide 15: Path to Revenue Acceleration

    Path to Revenue Acceleration FY 2025 FY 2024 Drivers of Operational Growth in 2025 Outlook • Growth aligned with Investor Day goals Total Company 3.7% 4.6% - 5.2% • Acceleration over the course of the year • 150 bps acceleration from strong sales ACV / execution Banking 2.2% 3.7% - 4.4% • Closed M&A

  16. Slide 16: FY 2025 Outlook – Additional Assumptions

    FY 2025 Outlook – Additional Assumptions $ millions 1Q 2025 OUTLOOK FY 2025 OUTLOOK Negative F/X Impact to Revenue ~$15 ~$50 Corporate and Other Revenue(1) ~$50 ~$165 Interest Expense ~$85 ~$365 - $370 Effective Tax Rate ~12% - 12.5% ~12% - 12.5% Shares Outstanding ~533M ~528M Depreciation and Amort

  17. Slide 17: Financial Summary

    Financial Summary Outlook in-line with Investor Day goals, total return(1) to shareholders of 11% - 13% • Accelerating Banking growth to ~4% • Continuation of ~7% growth for Capital Markets • Margin expansion of 40 - 45 bps with strong execution against cost agenda Targeting capital return of ~$2B i

  18. Slide 18: Durable Operating Model Across All Economic Cycles

    Durable Operating Model Across All Economic Cycles 1 We are: 2 We have: 3 We deliver: Scaled Global Broad Suite Of Technology Distribution & Best-Of-Breed Leader Marquee Set Solutions Of Clients 18

  19. Slide 19: Appendix

    Fis Appendix

  20. Slide 20: Forward-Looking Statements

    Forward-Looking Statements This earnings 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, as well as other statements about our expectations, beliefs, intentions, or strategies regarding

  21. Slide 21: Forward-Looking Statements

    Forward-Looking Statements • the risk that partners and third parties may fail to satisfy their legal obligations to us; • risks associated with managing pension cost, cybersecurity issues, IT outages experienced by us or by third parties and data privacy; • our ability to navigate the opportunities

  22. Slide 22: FIS Use of Non-GAAP Financial Information

    FIS Use of Non-GAAP Financial Information Generally Accepted Accounting Principles (GAAP) is the term used to refer to the standard framework of guidelines for financial accounting in the United States. GAAP includes the standards, conventions, and rules accountants follow in recording and summarizi

  23. Slide 23: Reconciliation of GAAP to Non-GAAP Financials

    Reconciliation of GAAP to Non-GAAP Financials THREE MONTHS ENDED DECEMBER 31, 2024 BANKING CAPITAL MARKET OPERATING SEGMENT CORPORATE AND CONSOLIDATED SOLUTIONS SOLUTIONS TOTAL OTHER FIS Revenue $1,717 $821 $2,538 $61 $2,599 FX 2 (1) 1 2 3 Constant Currency $1,720 $820 $2,540 $63 $2,603 Revenue THRE

  24. Slide 24: Reconciliation of GAAP to Non-GAAP Financials

    Reconciliation of GAAP to Non-GAAP Financials YEAR ENDED DECEMBER 31, 2024 BANKING CAPITAL MARKET OPERATING SEGMENT CORPORATE AND CONSOLIDATED SOLUTIONS SOLUTIONS TOTAL OTHER FIS Revenue $6,892 $2,979 $9,871 $256 $10,127 FX 3 (8) (5) 4 (1) Constant Currency $6,895 $2,970 $9,865 $260 $10,125 Revenue

  25. Slide 25: Reconciliation of GAAP to Non-GAAP Financials

    Reconciliation of GAAP to Non-GAAP Financials THREE MONTHS ENDED DECEMBER 31, 2024 Net cash provided by operating activities $782 Non-GAAP adjustments: Acquisition, integration and other payments (1) 114 Settlement activity (5) Adjusted cash flows from operations $891 Capital expenditures (189) Adju

  26. Slide 26: Reconciliation of GAAP to Non-GAAP Financials

    Reconciliation of GAAP to Non-GAAP Financials YEAR ENDED DECEMBER 31, 2024 Net cash provided by operating activities $2,175 Non-GAAP adjustments: Acquisition, integration and other payments (1) 475 Settlement activity (2) Adjusted cash flows from operations $2,648 Capital expenditures (817) Adjusted

  27. Slide 27: Reconciliation of GAAP to Non-GAAP Financials

    Reconciliation of GAAP to Non-GAAP Financials THREE MONTHS ENDED DECEMBER 31, 2024 2023 Net earnings (loss) attributable to FIS from continuing operations $304 $62 Provision (benefit) for income taxes 146 15 Interest expense, net 67 158 Equity method investment (earnings) loss, net of tax 36 - Other

  28. Slide 28: Reconciliation of GAAP to Non-GAAP Financials

    Reconciliation of GAAP to Non-GAAP Financials THREE MONTHS ENDED DECEMBER 31, 2024 2023 Net earnings (loss) attributable to FIS from discontinued operations $(23) $187 Provision (benefit) for income taxes (68) 28 Interest expense, net (1) (13) Other, net - (46) Operating income (loss) $(92) $156 Dep

  29. Slide 29: Reconciliation of GAAP to Non-GAAP Financials

    Reconciliation of GAAP to Non-GAAP Financials YEAR ENDED DECEMBER 31, 2024 2023 Net earnings (loss) attributable to FIS from continuing operations $787 $502 Provision (benefit) for income taxes 362 157 Interest expense, net 250 621 Equity method investment (earnings) loss, net of tax 145 - Other, ne

  30. Slide 30: Reconciliation of GAAP to Non-GAAP Financials

    Reconciliation of GAAP to Non-GAAP Financials YEAR ENDED DECEMBER 31, 2024 2023 Net earnings (loss) attributable to FIS from discontinued operations $663 $(7,157) Provision (benefit) for income taxes (1,062) (301) Interest expense, net (3) (27) Other, net 6 (63) Operating income (loss) $(396) $(7,54

  31. Slide 31: Reconciliation of GAAP to Non-GAAP Financials

    Reconciliation of GAAP to Non-GAAP Financials THREE MONTHS ENDED DECEMBER 31, 2024 2023 Earnings (loss) attributable to FIS from continuing operations $304 $62 Equity method investment (earnings) loss, net of tax 36 - Earnings (loss) attributable to FIS from continuing operations, excluding equity m

  32. Slide 32: Reconciliation of GAAP to Non-GAAP Financials

    Reconciliation of GAAP to Non-GAAP Financials THREE MONTHS ENDED DECEMBER 31, 2024 2023 Earnings (loss) attributable to FIS from discontinued operations, net of tax $(23) $187 Non-GAAP adjustments from discontinued operations: Purchase accounting amortization (1) - - Acquisition, integration and oth

  33. Slide 33: Reconciliation of GAAP to Non-GAAP Financials

    Reconciliation of GAAP to Non-GAAP Financials YEAR ENDED DECEMBER 31, 2024 2023 Earnings (loss) attributable to FIS from continuing operations $787 $502 Equity method investment (earnings) loss, net of tax 145 - Earnings (loss) attributable to FIS from continuing operations, excluding equity method

  34. Slide 34: Reconciliation of GAAP to Non-GAAP Financials

    Reconciliation of GAAP to Non-GAAP Financials YEAR ENDED DECEMBER 31, 2024 2023 Earnings (loss) attributable to FIS from discontinued operations, net of tax $663 $(7,157) Non-GAAP adjustments from discontinued operations: Purchase accounting amortization (1) - 762 Acquisition, integration and other

  35. Slide 35: Reconciliation of GAAP to Non-GAAP Financials

    Reconciliation of GAAP to Non-GAAP Financials THREE MONTHS ENDED DECEMBER 31, 2024 2023 Earnings (loss) attributable to FIS from continuing operations $0.56 $0.10 Equity method investment (earnings) loss, net of tax 0.07 - Earnings (loss) attributable to FIS from continuing operations, excluding equ

  36. Slide 36: Reconciliation of GAAP to Non-GAAP Financials

    Reconciliation of GAAP to Non-GAAP Financials THREE MONTHS ENDED DECEMBER 31, 2024 2023 Earnings (loss) attributable to FIS from discontinued operations, net of tax $(0.04) $0.32 Non-GAAP adjustments from discontinued operations: Purchase accounting amortization (1) - - Acquisition, integration and

  37. Slide 37: Reconciliation of GAAP to Non-GAAP Financials

    Reconciliation of GAAP to Non-GAAP Financials YEAR ENDED DECEMBER 31, 2024 2023 Earnings (loss) attributable to FIS from continuing operations $1.42 $0.85 Equity method investment (earnings) loss, net of tax 0.26 - Earnings (loss) attributable to FIS from continuing operations, excluding equity meth

  38. Slide 38: Reconciliation of GAAP to Non-GAAP Financials

    Reconciliation of GAAP to Non-GAAP Financials YEAR ENDED DECEMBER 31, 2024 2023 Earnings (loss) attributable to FIS from discontinued operations, net of tax $1.19 $(12.07) Non-GAAP adjustments from discontinued operations: Purchase accounting amortization (1) - 1.28 Acquisition, integration and othe

  39. Slide 39: Notes to Unaudited – Supplemental GAAP to Non-GAAP Reconciliations

    Notes to Unaudited – Supplemental GAAP to Non-GAAP Reconciliations (1) This item represents purchase price amortization expense on all intangible assets acquired through various Company acquisitions, including customer relationships, contract value, technology assets, trademarks and trade names. The

  40. Slide 40: Notes to Unaudited – Supplemental GAAP to Non-GAAP Reconciliations

    Notes to Unaudited – Supplemental GAAP to Non-GAAP Reconciliations THREE MONTHS ENDED DECEMBER 31, YEARS ENDED DECEMBER 31, 2024 2023 2024 2023 Continuing Operations: Acquisition and integration $18 $27 $88 $48 Enterprise transformation, including Future Forward and platform modernization 57 89 262

  41. Slide 41: Notes to Unaudited – Supplemental GAAP to Non-GAAP Reconciliations

    Notes to Unaudited – Supplemental GAAP to Non-GAAP Reconciliations (8) FIS completed the separation of Worldpay on January 31, 2024, retaining a non-controlling 45% ownership interest that is recorded under the equity method of accounting. FIS' share of Worldpay's results under the equity method of

  42. Slide 42: Supplemental Financial Information - Unaudited

    Supplemental Financial Information - Unaudited The Company completed the Worldpay Sale on January 31, 2024. The results of the Worldpay Merchant Solutions business prior to the completion of the Worldpay Sale have been presented as discontinued operations. The following table represents a reconcilia

  43. Slide 43: Supplemental Financial Information - Unaudited

    Supplemental Financial Information - Unaudited Summary Worldpay Holdco, LLC financial information is as follows: THREE MONTHS ENDED ELEVEN MONTHS ENDED DECEMBER 31, 2024 DECEMBER 31, 2024 (1) Revenue $1,303 $4,732 Gross profit $651 $2,422 Earnings (loss) before income taxes $(15) $(342) Net earnings

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