Fidelity National Information Services, Inc. · NYSE:FIS
Fidelity National Information Services — Q1 2014 Earnings Presentation
23 slides from Fidelity National Information Services's earnings presentation, May 1, 2014
Slide 1: First Quarter 2014 Earnings Call Supplemental Materials
FIRST QUARTER 2014 EARNINGS CALL SUPPLEMENTAL MATERIALS May 1, 2014 ©2013 FIS and/or its subsidiaries. All Rights Reserved.
Slide 2: Agenda
Agenda TOPIC SPEAKER First Quarter 2014 Frank Martire, Highlights Chairman and CEO Gary Norcross, Operations Review President and Chief Operating Officer Woody Woodall, Financial Summary Chief Financial Officer 2
Slide 3: Forward-looking Statements
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 strategies o
Slide 4: 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 5: First Quarter 2014 Highlights
FIRST QUARTER 2014 HIGHLIGHTS Frank Martire Chairman and CEO
Slide 6: First Quarter 2014 Highlights: Consistent Execution of Growth Strategy
First Quarter 2014 Highlights Consistent Execution of Growth Strategy • $1.5 BILLION revenue, up 4% organic Revenue $1.5B • $0.68 adjusted EPS, up 10% 0 • $248 MILLION adjusted cash flow from operations • $245 MILLION returned to Q1 2011 Q1 2012 Q1 2013 Q1 2014 shareholders • HIGH visibility into fu
Slide 7: Operations Review
OPERATIONS REVIEW Gary Norcross President and Chief Operating Officer
Slide 8: Operational Highlights
Operational Highlights • Capitalizing on GLOBAL market trends .INVESTING • in growth markets • Delivering INNOVATION • Driving GROWTH 8
Slide 9: Key Takeaways
Key Takeaways Strong start to the year Strong sales and pipeline Strong and growing client relationships Investing for growth 9
Slide 10: Financial Summary
FINANCIAL SUMMARY Woody Woodall Chief Financial Officer
Slide 11: Consolidated Results - Adjusted
Consolidated Results - Adjusted ($ Millions, except per share data) METRICS 2014 2013 Revenue $ 1,529 $ 1,478 Growth 3% Organic growth 4% EBITDA $ 445 $ 428 Growth 4% EBITDA Margin 29.1% 29.0% Net Earnings $ 197 $ 182 Growth 8% EPS $ 0.68 $ 0.62 Growth 10% Refer to www.investor.fisglobal.com for rec
Slide 12: Financial Solutions (Adjusted)
Financial Solutions | ($ Millions, Adjusted) METRICS 2014 2013 Revenue $ 587 $ 575 Growth 2% Organic growth 2% EBITDA $ 227 $ 228 EBITDA Margin 38.7% 39.6% Refer to www.investor.fisglobal.com for reconciliation of GAAP to non-GAAP items. See appendix for description of non-GAAP financial measures. 1
Slide 13: Payment Solutions (Adjusted)
Payment Solutions | ($ Millions, Adjusted) METRICS 2014 2013 Revenue $ 629 $ 612 Growth 3% Organic growth 3% EBITDA $ 264 $ 258 EBITDA Margin 42.1% 42.2% Refer to www.investor.fisglobal.com for reconciliation of GAAP to non-GAAP items. See appendix for description of non-GAAP financial measures. 13
Slide 14: International Solutions (Adjusted)
International Solutions | ($ Millions, Adjusted) METRICS 2014 2013 Revenue $ 314 $ 292 Growth 8% Organic growth 10% EBITDA $ 59 $ 59 EBITDA Margin 18.8% 20.3% Refer to www.investor.fisglobal.com for reconciliation of GAAP to non-GAAP items. See appendix for description of non-GAAP financial measures
Slide 15: Non-GAAP Reconciliation – Earnings Per Share
Non-GAAP Reconciliation – Earnings Per Share 2014 2013 GAAP net earnings per share from continuing operations $ 0.53 $ 0.50 Adjustments: Acquisition-related amortization 0.13 0.14 Gain on previously held minority interest in mFoundry (0.02) Contract Settlement 0.02 Adjusted EPS $ 0.68 $ 0.62 Growth
Slide 16: Free Cash Flow
Free Cash Flow | ($ Millions) Q1 Q1 2014 2013 Cash Flow from Operations $ 223 $ 208 Capco Acquisition Related Payments 28 $ - Settlement Activity (3) 14 Adjusted Cash Flow from Operations $ 248 $ 221 Capital Expenditures (90) (74) Free Cash Flow $ 158 $ 148 Calculations may differ due to rounding. R
Slide 17: Executing Capital Allocation Strategy
Executing Capital Allocation Strategy • Investing for growth – Innovation – Product and market expansion – Strategic, tuck-in acquisitions • Maintaining a strong balance sheet – $4.8 billion debt outstanding as of March 31 – 2.6 times debt-to-EBITDA • Returning cash to shareholders – $70 million in
Slide 18: 2014 Financial Outlook
FINANCIAL OVERVIEW 2014 Financial Outlook METRIC RANGE Organic revenue growth 4.5% to 6.5% Earnings per share, as adjusted $3.05 to $3.16 Growth + 8% to 12% ~ adjusted net Free cash flow conversion earnings 18
Slide 19: Key Takeaways
KEY TAKEAWAYS Consistent EXECUTION ON TRACK to achieve full-year targets DISCIPLINED capital allocation Focused on SHAREHOLDER RETURNS 19
Slide 20: Appendix
APPENDIX
Slide 21: Foreign Currency
Foreign Currency International Solutions Group Costs Revenue Composition (Q1-14) • Majority of costs within International Solutions Group are denominated in local currencies, reducing P&L impact (1) • Costs related to captive operation in India are carried in Financial Solutions Group (1) Represents
Slide 22: Debt Summary
Debt Summary | ($ Millions) Mar 31, Dec 31, Rate 2014 2013 Revolver L+125 bps $ 443 $ 29 Undrawn revolver capacity (1) 25 bps 1,557 1,971 Term Loan (2017 Maturity) L+125 bps 1,863 1,963 2018 Notes 2.000% 250 250 2020 Notes 7.875% 500 500 2022 Notes 5.000% 700 700 2023 Notes 3.500% 1,000 1,000 Other
Slide 23: Non-GAAP Financial Measures
Non-GAAP Financial Measures • Organic revenue includes adjusted revenue plus pre-acquisition revenue for companies acquired during the applicable reporting periods. Organic revenue excludes the impact of foreign currency fluctuation. • Adjusted revenue (2014) includes reported revenue and is increas
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