Fidelity National Information Services, Inc. · NYSE:FIS
Fidelity National Information Services — Q1 2012 Earnings Presentation
32 slides from Fidelity National Information Services's earnings presentation, Apr 26, 2012
Slide 1: First Quarter 2012 Earnings Call Supplemental Materials
First Quarter 2012 Earnings Call Supplemental Materials April 26, 2012 His
Slide 2: Agenda
Agenda First Quarter 2012 Highlights Speaker Frank Martire, Chairman and CEO Operations Review Gary Norcross President and Chief Operating Officer Financial Summary Mike Hayford Chief Financial Officer Q&A Martire, Norcross and Hayford
Slide 3: Forward Looking Statements
Forward Looking Statements This presentation and today’s conference call contain “forward-looking statements” within the meaning of the U.S. federal securities laws, Statements that are not historical facts, including statements about revenue, organicrevenue, earnings before interest, taxes, depreci
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 2012 Highlights
First Quarter 2012 Highlights Frank Martire Chairman and CEO
Slide 6: Strong Performance — 1st Quarter 2012 Highlights
Strong Performance — 1°t Quarter 2012 Highlights ° 5.3% organic revenue growth — Solid performance across all operating segments * 10.3% EBITDA growth, as adjusted °150 bps margin expansion © 22% EPS growth, as adjusted Organic Revenue Growth 5.3% 4.9% 4.1% Q3-11 Q4-11 Q1-12
Slide 7: Focused on Performance
Focused on Performance * Expandingclient relationships * Investing for the future * Executing the strategy communicated at Investor Day — Organic revenue growth — Margin expansion — Driving value to shareholders
Slide 8: Operations Review
Operations Review Gary Norcross President and Chief Operating Officer His
Slide 9: Global Sales Climate
Global Sales Climate * Continued investment spending * Market dynamics drive opportunities for FIS — Clients focusing on growth and ongoing efficiency — Trend towards outsourcing continues — Financial institutions are managing through increased regulation * Increased stability and improving profitab
Slide 10: North America
North America * Very successful client conference — Over 1,000 clients in attendance — More than 100 FIS product demonstrations and 130 breakout sessions * Ongoing cross-sell success * Continued growth in professional services, channel solutions and global commercial services * Solid growth in payme
Slide 11: International
International * Solid organic growth; optimistic regarding full year outlook * Strong growth in Brazil — Growth in card volumes and back-office support * Continued growth in Europe — Strong growth in Capco consulting revenues — Continued demand for discretionary professional services * Asia Pacific
Slide 12: Driving Performance
Driving Performance ° 5.3% organic growth — Solid performance across all operating segments °150 bps margin expansion — Payments transaction growth — Continued focus on managing costs * Focused strategy — Drive organic revenue growth — Allocate resources to high growth businesses — Strong cost manag
Slide 13: Ongoing Investments to Drive Cross-Sales
Ongoing Investments to Drive Cross-Sales * Product-focused acquisitions ics ‘Compliance ‘The confidence of more * Support strategy to build end-to-end risk, fraud and compliance solutions «memento. * Ongoingintegration
Slide 14: Ongoing Infrastructure Improvements
Ongoing Infrastructure Improvements * Information security and risk management — Sunrise platform breach in first quarter of 2011 — Significant efforts and progress towards enhancing information security and risk management across FIS — Hired new Chief Information Security Officer and new Chief Risk
Slide 15: Key Takeaways
Key Takeaways * Strong first quarter performance — Solid organic growth and margin expansion * Executing product-focused acquisition strategy * Ongoinginvestments to optimize global infrastructure and further enhance information security and risk management * Focused on serving clients and executing
Slide 16: Financial Summary
Financial Summary Mike Hayford Chief Financial Officer
Slide 17: Consolidated Results
Consolidated Results {$ millions) Revenue Growth Organic growth Q1 2012 5% 5% Q12011 Adjusted EBITDA Growth $406 10% Adjusted EBITDA Margin Y-O-Y change a — Ye 28.1% +150 bps esorfsglabal com for reconciistionof GAAP to non-GAAP items. uv
Slide 18: Financial Solutions
Financial Solutions {$ millions) Q1 2012 Q1 2011 Revenue Organic Growth EBITDA Growth EBITDA Margin Y-O-Y change invesorfigelobal com for razoncistion of GAAP to non-GAAP items Sg
Slide 19: Payment Solutions
Payment Solutions {$ millions) Q1 2012 Q12011 Revenue Growth 3% Growth, as adjusted() 4% EBITDA $249 Growth 14% EBITDA Margin 39.5% y-0-Y change +380 bps FIs ts :lralatad businessee which dechnadS5Amilionta $107.9 milion inthe currantyaar quarter Jester siglobal.com for reconciliation of GAAP to non
Slide 20: International Solutions
International Solutions {$ millions) Q1 2012 Q1 2011 Revenue Growth Organic growth) EBITDA Growth EBITDA Margin Y-O-Y change |S _attcnste antares carn ips preity 20 tao at rsenacans re f Fefertownw inves orfsgbal cam oracon dation! GA: to nom GAAP ems
Slide 21: Corporate EBITDA
Corporate EBITDA ($ millions ) Q1 2012 Q1 2011 EBITDA Adjustments: HIS Stock and other compensation charges(t Adjusted EBITDA (1) Chargesfor accelerated vesting of certain equity grants pursuant to the changes in roles of Messrs. Foley and Bickett, and non-compete and change in role cash payment to
Slide 22: Consolidated Results
Consolidated Results ($ mi ins, except per share data) Q1-2012 Q1-2011 GAAP Net Earnings from Continuing Operations Stock and other compensation charges” Debt refinancing costs”) Net Earnings, excluding other items Acquisition Related Purchase Amortization Adjusted Net Earnings from Continuing Opera
Slide 23: Free Cash Flow
Free Cash Flow Q12012 Qi2011 Cash flow from operations!” Capital expenditures Settlement activity Free Cash Flow?) (a) 01-2012 incusee 3542 milionfinal payment relatedto an intarect rateswap aesumad in the acquisition an Matavante Technologies, Ine (9) Free cseh flow ie GAAP oparsting cach los laze
Slide 24: Committed to Capital Allocation Strategy
Committed to Capital Allocation Strategy * Investing for Growth — Capital expenditures of $65 million ¢ 1 2012 * Further strengthened the balance sheet — $59 million in mandatory debt repayments — $4.8 billion debt outstanding and weighted average rate of 4.7% at quarter-end share. Expenditures — De
Slide 25: Debt Refinancing
Debt Refinancing Refinancing Summary * Issued $700 million 10-year bonds at 5.0% — Proceeds used to reduce Term Loan B Extended the overall duration * Refinanced Term Loan A and Revolver py approximately 2 Yeats — Extended maturities from 2014 to 2017 Reduced the weighted average — Reduced spreads b
Slide 26: Buy, Build or Invest in New Products
Buy, Build or Invest in New Products Acquisitions support strategy to build end-to-end risk, fraud and compliance solutions * Offers compliance consulting services to support risk icS management in the financial services industry ‘The confidence of more= * Customized programs primarily focus on regu
Slide 27: Key Takeaways
Key Takeaways * Encouraged by solid first quarter operating results * Ongoing focus on information security * Executing business strategy that we communicated at Investor Day: — Driving organic growth and margin expansion — Progress on capital allocation plan + Completed debt refinancing * Returned
Slide 28: Q & A
Slide 29: Appendix
Slide 30: Debt Summary
Debt Summary ($m ns) March 31, 2012 December 31, 2011 Balance Rate Balance Rate Term Loan A 2014 Maturity L+2.25% L+2.25% 2017 Maturity L+2.00% = Revolver L+2.00% L+2.25% Term Loan B (2016) L+3.25% L+3.25% Senior Unsecured Notes 2017 Maturity 2020 Maturity 2022 Maturity Other Total Debt Weighted Ave
Slide 31: Non-GAAP Financial Results
Non-GAAP Financial Results ({$ 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-acquisition revenu
Slide 32: Non-GAAP Financial Measures
Non-GAAP Financial Measures EBITDA is earnings from continuing operations before interest, taxes and depreciation and amortization. Adjusted EBITDA (2012 comparative data) excludes accelerated vesting of certain stock options and restricted stock grants and for a non-compete and change in role payme
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