Aci Worldwide, Inc. · NASDAQ:ACIW
Aci Worldwide — ACI Worldwide Investor Conferences May 2011
28 slides from Aci Worldwide's conference presentation, May 12, 2011
Slide 1: May 2011 ACI Worldwide Investor Conferences
May 2011 ACI Worldwide Investor Conferences 1 ACI's software underpins electronic payments throughout retail and wholesale banking, and commerce all the time.
Slide 2: Safe Harbor For Forward-Looking Statements
2 This presentation contains forward-looking statements based on current expectations that involve a number of risks and uncertainties. The forward- looking statements are made pursuant to safe harbor provisions of the Private Securities Litigation Reform Act of 1995. A discussion of these forward-l
Slide 3: Business Overview
f Business Overview
Slide 4: ACI Worldwide: A Global Payments Company
ACI Worldwide: A Global Payments Company 4 Strategic Centers Regional Sales Office Distributors/Sales Agents Solution areas: Retail payments Wholesale payments Financial crime mgmt Online banking 2100 employees Revenue CY 2010 = $418M Op Income CY 2010 = $54M 60 month backlog as of March 2011 = $1.6
Slide 5: ACI's software underpins electronic payments throughout retail and wholesale banking
ACI's software underpins electronic payments throughout retail and wholesale banking Retail Payments: Electronic Payment Processing Software supporting ATM's and POS terminals, switching, and various authentications, authorization and reporting options for internet banking, branch and mobile systems
Slide 6: Typical purchase transaction
ACQUIRING SWITCHING/ ROUTING AUTHORIZING Core Banking Systems NETWORKS NATIONAL NETWORK S Hardware Security Module CARDHOLDER/ ACCOUNT DATA BASE24-eps(r) ACI Retail Commerce ServerTM BASE24 Typical purchase transaction 6
Slide 7: Transaction sources
Transaction sources Point of Sale Automated Teller Machine Bank Branch Mail Order/ Telephone Order Web Shopping Mobile Banking or Payments Internet Banking Phone Banking 7
Slide 8: Fraud Detection
Fraud Detection ACI Proactive Risk ManagerTM ACI Case ManagerTM 8
Slide 9: ACI Market Share
ACI Market Share 9 BANKING 22 of the top 25 in the U.S. 4 of the top 5 in Brazil 5 of the top 10 in Malaysia 8 of the top 10 in Canada 7 of the top 10 in Saudi Arabia 8 of the top 10 in India MERCHANT RETAIL PROCESSORS 6 of the top 6 in Australia 7 of the top 10 in the U.K. 4 of the top 10 in Mexico
Slide 10: Our Customers are top global banks, processors and retailers
10 Our Customers are top global banks, processors and retailers
Slide 11: Building Long Term Shareholder Value
Building Long Term Shareholder Value In 5th year of cycle to renew previously discounted term licenses at economic value Increased 60-month backlog by ~ $350 million since 2007 Drove monthly recurring revenue to 68% of the business, up 10% from 58% of the business in 2007 Grew operating margin by 13
Slide 12: 2011 Market Opportunities
12 2011 Market Opportunities Cross selling new applications to current customers based on integrated payments solutions portfolio Investing in resources to accelerate our growth in emerging markets (Brazil, China, etc) Multi-region wholesale market payment hubs Driving BASE24-eps(r) migrations Tools
Slide 13: Financial Review
Scott Behrens Chief Financial Officer Financial Review
Slide 14: Calendar Year Revenue Mix 2006-2010
54% 30% 16% 17% 24% 20% 59% 23% 19% 57% 21% 60% 17% 15% 68% $356 $374 $418 $418 $440 - $450 $406 Calendar Year Revenue Mix 2006-2010 14
Slide 15: Operating Income and Operating EBITDA 2007-2011G
Operating Income and Operating EBITDA 2007-2011G Operating Income Operating EBITDA CY11 depicted at the midpoint of the guidance range $0 $22 $42 $54 $64 $27 $52 $73 $88 $100 15
Slide 16: Revenue By Quarter 2009-2010-Q1 2011
Q1-09 Q2-09 Q3-09 Q4-09 Q1-10 Q2-10 Q3-10 Q4-10 Q1-11 88.2 87.2 104.5 125.9 87.7 92.4 97 141.2 104.5 Revenue By Quarter 2009-2010-Q1 2011
Slide 17: Operating Income by Quarter 2009-2010-Q1 2011
Operating Income by Quarter 2009-2010-Q1 2011 Q1-09 Q2-09 Q3-09 Q4-09 Q1-10 Q2-10 Q3-10 Q4-10 Q1-11 Operating Income -2.1 -3.2 11.9 35 -0.9 4.4 7.4 42.8 7.5
Slide 18: Backlog as a Contributor of Annual Revenue
Backlog as a Contributor of Annual Revenue Increasing Backlog from monthly recurring revenues and project go-lives continues to grow and drive quarterly GAAP revenue, leading to predictable quarterly performance We expect backlog to contribute a similar percentage of 2011 revenue led by recurring re
Slide 19: Revenue by Industry Type
Revenue by Industry Type Increase of $13 million or 5% in the amount of revenue generated by banking sector as sales rebounded from aftermath of financial crisis Processor sales increased on the mid-year renewal of the FDC contract Retail stores segment stayed fairly constant and we continue to see
Slide 20: Revenue by Region
Revenue by Region Americas Strong renewals and add-on business across the region led to stable performance EMEA EMEA's growth was led by the global accounts deals with major processors as well business with existing banking customers across the region Markets of note included UK, Italy, Oman, UAE an
Slide 21: CY 2010 Revenue Concentration
= Revenue from Top 20 Customers = Revenue from All Other Customers Top 1 4% Top 5 13% Top 10 20% Top 20 29% Not reliant on an individual customer relationship Top 20 individual customers change from year to year due to significant project completion & renewals Top 20% (approximately 140 customers) r
Slide 22: 2011 Guidance
2011 Guidance 22 Revenue Revenue growth range higher than last year Revenue and margin phasing consistent with prior-year Operating Income Operating income improves from on-going growth in recurring revenue and continued expense management 15%-20% growth range Operating EBITDA Depreciation and amort
Slide 23: Key Takeaways from the First Quarter 2011
Key Takeaways from the First Quarter 2011 Strong Sales & Backlog Growth Sales growth in the EMEA and Americas regions led by large renewals with add- ons as well as higher capacity revenue; new sales increased 57% Backlog growth of $47 million largely led by ISD acquisition and FX translation Strong
Slide 24: Non-GAAP Financial Measures
Non-GAAP Financial Measures ACI also includes backlog estimates which are all software license fees, maintenance fees and services specified in executed contracts, as well as revenues from assumed contract renewals to the extent that we believe recognition of the related revenue will occur within th
Slide 25: Non-GAAP Financial Measures
Non-GAAP Financial Measures For example, our customers may attempt to renegotiate or terminate their contracts for a number of reasons, including mergers, changes in their financial condition, or general changes in economic conditions in the customer's industry or geographic location, or we may expe
Slide 26: Forward-Looking Statements
Forward-Looking Statements This presentation contains forward-looking statements based on current expectations that involve a number of risks and uncertainties. Generally, forward-looking statements do not relate strictly to historical or current facts and may include words or phrases such as "belie
Slide 27: Forward-Looking Statements
Forward-Looking Statements All of the foregoing forward-looking statements are expressly qualified by the risk factors discussed in our filings with the Securities and Exchange Commission. Such factors include but are not limited to, risks related to the global financial crisis and the continuing de
Slide 28: ACI's software underpins electronic payments throughout retail and wholesale banking
ACI's software underpins electronic payments throughout retail and wholesale banking, and commerce all the time, without fail. www.aciworldwide.com
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