Fidelity National Information Services, Inc. · NYSE:FIS
Fidelity National Information Services — Q4 2019 Earnings Presentation
26 slides from Fidelity National Information Services's earnings presentation, Feb 13, 2020
Slide 1: Fourth Quarter 2019 Earnings Call
FOURTH QUARTER 2019 EARNINGS CALL February 13, 2020
Slide 2: Agenda
AGENDA Gary Norcross, Business Summary Chairman, President and CEO Woody Woodall, Financial Summary Chief Financial Officer
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
Slide 4: Business Summary
BUSINESS SUMMARY GARY NORCROSS Chairman, President and CEO
Slide 5: 4Q 2019 Highlights
4Q 2019 HIGHLIGHTS Revenue (millions) ROBUST 4Q 2019 RESULTS highlight strong business momentum 4Q19 $3,341 NEW WINS demonstrate powerful client value proposition created by on-going investments 4Q18 $2,167 54% Growth (7% Organic) WORLDPAY INTEGRATION AHEAD OF SCHEDULE due to focused execution Adjus
Slide 6: New Wins Demonstrate Powerful Client Value Proposition
NEW WINS DEMONSTRATE POWERFUL CLIENT VALUE PROPOSITION CAPITAL BANKING MERCHANT MARKETS Top 10 Bank and Global Search Engine Leading Institutional MUFG Union Bank Asset Manager Increasing volume to Innovating with FIS achieve superior Deploying bundled Modern Banking Platform outcomes investment sol
Slide 7: Accelerating Revenue Synergies
ACCELERATING REVENUE SYNERGIES ($ millions, annual run-rate achievement) 1 Revenue Synergy Update Multiple Opportunities Increasing Debit Card Routing at Scale $500M Total YE ‘22 • Volumes ramped through second half of 2019 Goal to $550M $400M Cross Selling Multiple Solutions $300M 1 Innovative Prem
Slide 8: Resilient Business Model
RESILIENT BUSINESS MODEL PAY PAYBANK INVEST BANK INVEST Merchant Solutions Banking Solutions Capital Market Solutions • Leader in secular high-growth • Best-in-class suite of next- • Adoption of platform eCommerce and Integrated gen solutions that serve modernization, Advanced Payments small to larg
Slide 9: Financial Summary
FINANCIAL SUMMARY WOODY WOODALL Chief Financial Officer
Slide 10: 2019 Accomplishments Give Confidence in 2020 Outlook
2019 ACCOMPLISHMENTS GIVE CONFIDENCE IN 2020 OUTLOOK 1 2 3 4 Accelerating Organic Increasing Efficiency Reducing Non- Strategically 1 Revenue Growth to Drive Margins Operating Costs Allocating Capital • Transformed organic • Aggressively drove • Reduced annual • Generated $2.1 revenue growth cost sy
Slide 11: FIS 4Q 2019 Consolidated Results
FIS 4Q 2019 CONSOLIDATED RESULTS ($ millions except per share data) Reported Organic Consolidated Results 4Q 2019 4Q 2018 Growth Growth1 Revenue $ 3,341 $ 2,167 54% 7% Merchant Solutions 1,116 71 * 10% Banking Solutions 1,556 1,474 6% 5% Capital Market Solutions 669 622 8% 8% Adjusted EBITDA $ 1,490
Slide 12: 4Q 2019 Segment Summary
4Q 2019 SEGMENT SUMMARY Merchant Solutions Revenue (millions) • Organic revenue growth accelerated 4Q19 $1,116 sequentially to 10%, as expected • Robust growth in eCommerce and Integrated Payments drive positive outlook in 2020 4Q18 $71 Significant Growth • 4Q EBITDA margin of 52% (10% Organic) Bank
Slide 13: Integration Ahead of Schedule
INTEGRATION AHEAD OF SCHEDULE ($ millions, annual run-rate achievement) 1 1 Cost Synergy Update Cost Synergy Targets Increasing Increasing YE ‘20 $600M Total YE ‘22 Target to $600M Accelerating Synergy Achievement Goal to $675M $465M • Exceeded initial $400 million cost synergy goal within five mont
Slide 14: Superior Financial Performance
SUPERIOR FINANCIAL PERFORMANCE REVENUE1 ADJUSTED EBITDA ($ Millions) ($ Millions) $14,000 10% $7,000 0.7 9% 0.65 $12,000 $6,000 8% 0.6 $10,333 $10,000 7% $5,000 0.55 $8,668 $8,423 6% - 7% 6% $4,204 0.5 $8,000 $4,000 6% 5% 0.45 $3,133 $2,984 $6,000 4% $3,000 ~44% 0.4 41% $4,000 3% $2,000 37% 0.35 3%
Slide 15: Establishing 2020 Guidance
ESTABLISHING 2020 GUIDANCE $ millions except per share data 1Q 2020 Guidance FY 2020 Guidance Revenue $ 3,180 – $ 3,210 $ 13,550 – $ 13,675 Organic Revenue Growth 5% - 6% 6% - 7% Adjusted EPS $ 1.30 – $ 1.34 $ 6.17 – $ 6.35 Adjusted EPS Growth 12% - 16% 10% - 13% 1Q 2020 Guidance Assumptions FY 2020
Slide 16: Advancing the Way the World Pays, Banks and Invests
eee (— | SoS ADVANCING THE WAY THE WORLD PAYS, BANKS AND INVESTS.
Slide 17: Appendix
APPENDIX KIS
Slide 18: Forward-Looking Statements
FORWARD-LOOKING STATEMENTS This presentation 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 19: Forward-Looking Statements
FORWARD-LOOKING STATEMENTS • changes in the growth rates of the markets for our solutions; • failures to adapt our solutions to changes in technology or in the marketplace; • internal or external security breaches of our systems, including those relating to unauthorized access, theft, corruption or
Slide 20: 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
Slide 21: FIS Use of Non-GAAP Financial Information
FIS USE OF NON-GAAP FINANCIAL INFORMATION Adjusted EBITDA is EBITDA, as defined above, excluding certain costs and other transactions which management deems non-operational in nature, the removal of which improves comparability of operating results across reporting periods. This measure is reported
Slide 22: Organic Revenue Growth Calculation
ORGANIC REVENUE GROWTH CALCULATION ($ millions, unaudited) Three months ended December 31, 2019 Capital Merchant Banking Market Solutions Solutions Solutions Consolidated Revenue $ 1,116 $ 1,556 $ 669 $ 3,341 Currency translation adjustment 2 4 1 7 Constant currency (A) $ 1,118 $ 1,561 $ 670 $ 3,348
Slide 23: Organic Revenue Growth Calculation
ORGANIC REVENUE GROWTH CALCULATION ($ millions, unaudited) Year ended December 31, 2019 Capital Merchant Banking Market Corporate Solutions Solutions Solutions and Other Consolidated Revenue $ 2,013 $ 5,873 $ 2,447 $ - $ 10,333 Currency translation adjustment 13 37 20 - 70 Constant currency (A) $ 2,
Slide 24: Reconciliation of GAAP to Non-GAAP
RECONCILIATION OF GAAP TO NON-GAAP ($ millions, unaudited) Three months ended Years ended December 31, December 31, 2019 2018 2019 2018 Net earnings (loss) attributable to FIS common stockholders $ (158) $ 299 $ 298 $ 846 Provision (benefit) for income taxes (19) 85 100 208 Interest expense, net 95
Slide 25: Reconciliation of GAAP to Non-GAAP
RECONCILIATION OF GAAP TO NON-GAAP Three months ended Years ended ($ millions, except per share amounts, unaudited) December 31, December 31, 2019 2018 2019 2018 Earnings (loss) before income taxes and equity method investment earnings (loss) $ (183) $ 400 $ 413 $ 1,104 Provision (benefit) for incom
Slide 26: Reconciliation of GAAP to Non-GAAP
RECONCILIATION OF GAAP TO NON-GAAP ($ millions, unaudited) Three months ended Year ended December 31, 2019 December 31, 2019 Net cash provided by operating activities $ 670 $ 2,410 Non-GAAP adjustments: Acquisition, integration and other payments 96 356 Tax payments on divestitures - 10 Settlement a
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