Fidelity National Information Services, Inc. · NYSE:FIS
Fidelity National Information Services — Investor Day (February 2012)
33 slides from Fidelity National Information Services's investor day presentation, Feb 14, 2012
Slide 1: 2012 Investor Day
2012 Investor Day February 14, 2012 Orlando, Fla. His
Slide 2: Agenda
Agenda Fourth quarter and full year 2011 results 2012 strategy discussion and financial outlook | Q&A session Topic table reception His
Slide 3: 4th Quarter and Full Year 2011 Earnings Summary
4th Quarter and Full Year 2011 Earnings Summary February 14, 2012 His
Slide 4: Forward Looking Statements
Forward Looking Statements This presentation contains “forward-looking statements’ within the meaning of the US. federal securities laws. Statements that are not historical facts, Includingstatements about revenue, organic revenue, earnings per share, margin expansion and cach flow, as well as ather
Slide 5: Use of Non-GAAP Measures
Use of Non-GAAP Measures 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 transactions and in the preparation
Slide 6: 2011 in Review
2011 in Review Frank Martire Chief Executive Officer
Slide 7: 2011 in Review
2011 in Review Results summary Speaker Frank Martire Chief Executive Officer Operations review Gary Norcross Chief Operating Officer Financial performance Mike Hayford Chief Financial Officer
Slide 8: Global Scale and Leadership
Global Scale and Leadership : $5.7 billion revenue *°$1.7 billion EBITDA ® $698 million adjusted net earnings ® $1.2 billion operating cash flow HIS ON THE 20 FINTECH 100
Slide 9: Strong Performance — 2011 Results
Strong Performance — 2011 Results Organic Revenue Growth ° 5% organic revenue growth 5.2% ° 12% adjusted EPS growth ne 3.2% * $1.2 billion international revenue — 22% organic growth — Strong FIS and Capco results 0.3% * Expandingclient relationships fey | 2009 2010 2011
Slide 10: Strong Performance Despite Challenging Environment
Strong Performance Despite Challenging Environment ($B except per share data) Revenue: EBITDA: EPS: Predictable High margins with Mid-teens >80% recurring opportunity to expand EPS growth $5.7 $1.7 $2.27 2008 2011 2008 2011 2008 2011 10
Slide 11: Deploying Cash in Value-enhancing Ways
Deploying Cash in Value-enhancing Ways * Invested for growth — Capital expenditures of $300 million (5% of revenue) — New product investments * Strengthened balance sheet — Reduced debt by $382 million * Returned excess cash to shareholders — ~$460 million in dividends and share repurchases * Increa
Slide 12: Well Positioned to Drive Performance in 2012
Well Positioned to Drive Performance in 2012 * Organicrevenue and earnings growth * Focused on managing costs and driving margin expansion * Disciplined capital management * Focused on enhancing shareholder value
Slide 13: Business Highlights
2011 Business Highlights Gary Norcross Chief Operating Officer
Slide 14: Solid Sales Results
Solid Sales Results * Improved sales trends in Q4; strong finish to the year * Ongoing demand for outsourced solutions and professional services * First joint FIS/Capco transformational deal * More than 100 core platform conversions in 2011 * Growing demand for emerging and early-stage solutions itl
Slide 15: Continued Strong Growth in International
Continued Strong Growth in International * Continued strong growth with increases across all major regions * Strong card issuance in Brazil— more than 50 million cards processed * Strength in FIS and Capco European businesses * Leveraging solutions across international businesses 18
Slide 16: Key Takeaways
Key Takeaways * Encouraged by fourth quarter Sales trends * Winninghew deals and executing cross-sell strategy * Strong European business model in an attractive market * Focused on driving profitable growth and greater operating efficiency
Slide 17: Financial Summary
2011 Financial Summary Mike Hayford Chief Financial Officer
Slide 18: Consolidated Results
2011 Consolidated Results {$ millions, except per share data) Fourth Quarter Revenue Growth Organic growth Adjusted EBITDA” Growth Adjusted EBITDA Margin”) Y-0-Y change Adjusted Earnings per Share) Growth Free Cash Flow Percent of adjusted net earnings Effective Tax Rate Diluted Shares, in millions
Slide 19: Consolidated Results
2011 Consolidated Results Fourth Quarter GAAP net earnings per share from continuing operations Adjustments: Acquisition-related amortization Debt extinguishment and refinancing costs Write-down in value of non-strategicinvestments Net benefit related to adjustments for Capco acquisition Adjusted EP
Slide 20: Financial Solutions
2011 Financial Solutions {$ millions) Fourth Quarter Full Year Revenue Growth Organic growth EBITDA() Growth EBITDA Margin(t) Y-O-Y change | St sseesinda tain, snmcvand 6A cass miln as a2 snot theta f Nota: Calculations my difer duet rounding ra
Slide 21: Payment Solutions
2011 Payment Solutions {$ millions) Fourth Quarter Full Year Revenue Growth Growth, as adjusted(!) EBITDA) Growth 7% EBITDA Margin?) 40.0% Y-0-Y change +180 bps (a) Excludes checleralatad busineszee which decresced 54,2 milion to 5117.1 milionin 04 and destined $18.9 milion to $463.7 milion forthe f
Slide 22: International Solutions
2011 International Solutions {$ millions) Fourth Quarter Full Year Revenue Growth Organic growth EBITDA() Growth EBITDA Margin(t) Y-O-Y change [SR iss eens rereenie erin f Note: Calculations may df dust rounding x
Slide 23: Corporate EBITDA
2011 Corporate EBITDA {$ millions) Fourth Quarter Full Year EBITDA! Adjustments: Net benefit related to adjustments for Capco acquisition Adjusted EBITDA [SR ies Sere ernie rine f Note: Calculations may df dust rounding Pe
Slide 24: Scorecard
2011 Scorecard HIS Adjusted Revenue Growth Reported Organic Investor Day Outlook December 2010 +9% to 11% +4% to 6% Adjusted EBITDA Growth?) +7% to 9% Adjusted EPS Growth $2.24 to $2.34 Free cash flow conversion Note: Calculations may df dust rounding ~100% of adjusted earnings a) 2022 TDA incudesin
Slide 25: Capital Allocation — $871M Free Cash Flow
Capital Allocation — $871M Free Cash Flow {$ millions) Returned Cash $60 Dividends Share repurchases Capital Investment Reduced Debt te'sharaholdars $314 $5,192 $68 Dividends $300 6% of $4,810 Rev 5% of Rev Share SPIER repurchases FY-10 FY-11 12/31/10 12/31/11 FY-10 FY-11
Slide 26: Debt Refinancing
Debt Refinancing * Refinanced term loans scheduled to mature in January 2012 * Replaced expiring revolving commitments to maintain ample liquidity * Refinanced Term Loan B to reduce interest expense * Extended maturities through issuance of new bonds * Nochange to total leverage
Slide 27: Debt Summary
Debt Summary {$ millions) Term LoanA 2012 Maturity 2014 Maturity Revolver Term Loan B (2016) Senior Unsecured Notes 2017 Maturity 2020 Maturity Other Total Debt Weighted Average Rate Debt-to-EBITDA [current TermLoané floor of 1.00% comparedto 1.50% f Mandatory quartary debt payments of 563.2 milion
Slide 28: Key Takeaways
2011 Key Takeaways * 5% organic revenue growth 12% adjusted earnings per share growth : >$1B operating cash flow; $871M free cash flow : ~$460M cash returned to shareholders Anticipate continued growth HIS
Slide 29: Appendix
Slide 30: Non-GAAP Financial Results — 4th Quarter
Non-GAAP Financial Results — 4‘ Quarter ({$ millions) Organic revenue growth is calculated as the difference between (A) reported revenue for the current period excludingthe impact of current period acquisitions and foreign currency impacts and (B} reported revenue forthe prior period plus pre-acqui
Slide 31: Non-GAAP Financial Results — Full Year
Non-GAAP Financial Results — Full Year ({$ millions) Organic revenue growth is calculated as the difference between (A) reported revenue for the current period excludingthe impact of current period acquisitions and foreign currency impacts and (B} reported revenue forthe prior period plus pre-acquis
Slide 32: Non-GAAP Financial Measures
Non-GAAP Financial Measures Organic Revenue and Adjusted Revenue Organic revenue (2011 and 2010 comparative data) includes reported revenue plus pre-acquisition revenue for companies acquired during the applicable reporting periods. Organic revenue excludes the impact of foreign currency fluctuation
Slide 33: Non-GAAP Financial Measures
Non-GAAP Financial Measures Adjusted Net Earnings and Adjusted Net Earnings Per Share Adjustednet earnings (2011 comparative date) exclude the after-tax impact of acquisition related amortization, a non-cash charge related to an other than temporary decline in the market value of investments, debt r
Fidelity National Information Services — Investor Day (February 2012) on 6ix