Fidelity National Information Services, Inc. · NYSE:FIS
Fidelity National Information Services — Q1 2017 Earnings Presentation
29 slides from Fidelity National Information Services's earnings presentation, May 2, 2017
Slide 1: First Quarter 2017 Earnings Call
First Quarter 2017 Earnings Call May 2, 2017 ©2017 FIS and/or its subsidiaries. All Rights Reserved.
Slide 2: Agenda
Agenda TOPIC SPEAKER Gary Norcross, Business Summary President and CEO Woody Woodall, Financial Summary Chief Financial Officer 2
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 President and CEO 4
Slide 5: First Quarter Highlights
First Quarter Highlights • $2.3 BILLION adjusted revenue • $0.86 adjusted EPS • INCREASING SunGard cost synergy target 5
Slide 6: First Quarter Business Update
First Quarter Business Update • Integrated Financial Solutions (IFS) – Strong demand – Continued strength in corporate and digital – Growth from new solution set • Global Financial Solutions (GFS) – Growth in international banking and payment solutions – Consistent demand for compliance solutions in
Slide 7: Strategic Growth Levers
Strategic Growth Levers • EXECUTE on differentiating capabilities • CAPITALIZE on global scale • ATTRACTIVE capital allocation principles 7
Slide 8: Financial Summary
Financial Summary Woody Woodall Chief Financial Officer 8
Slide 9: Consolidated Results
Consolidated Results First Quarter (Q1) 2017 ($ millions) METRICS Q1 2017 Y-o-Y vs Q1 2016 Adj. Revenue $ 2,258 1.7% Organic(1) Adj. EBITDA $ 682 7.0% Adj. EBITDA Margin 30.2% 200 bps Adj. EPS $ 0.86 8.9% (1) Organic revenue growth adjusts for FX translation and M&A activity, for a detailed definiti
Slide 10: Integrated Financial Solutions
Integrated Financial Solutions First Quarter (Q1) 2017 ($ millions) METRICS Q1 2017 Y-o-Y vs Q1 2016 Revenue $ 1,128 1.5% Organic(1) Adj. EBITDA $ 442 4.3% Adj. EBITDA Margin 39.2% 110 bps (1) Organic revenue growth adjusts for FX translation and M&A activity, for a detailed definition see Appendix.
Slide 11: Integrated Financial Solutions
Integrated Financial Solutions Revenue Contribution Revenue Composition – Q1 ($ millions) RECURRING REVENUE | 89% ORGANIC First Quarter GROWTH Banking and Wealth $ 484 1.3% PROF. SERVICES | 7% Payments 449 (0.3)% OTHER | 4% Corporate and Digital 195 6.1% Total Integrated $ 1,128 1.5% Financial Solut
Slide 12: Global Financial Solutions
Global Financial Solutions First Quarter (Q1) 2017 ($ millions) METRICS Q1 2017 Y-o-Y vs Q1 2016 Revenue $ 1,019 3.0% Organic(1) Adj. EBITDA $ 283 12.8% Adj. EBITDA Margin 27.8% 240 bps (1) Organic revenue growth adjusts for FX translation and M&A activity, for a detailed definition see Appendix. Fo
Slide 13: Global Financial Solutions
Global Financial Solutions Revenue Contribution Revenue Composition – Q1 ($ millions) RECURRING REVENUE | 69% ORGANIC First Quarter GROWTH Institutional and $ 489 (1.5)% PROF. SERVICES | 26% Wholesale Banking and 394 9.2% Payments Consulting 136 3.5% OTHER | 5% Total Global $ 1,019 3.0% Financial So
Slide 14: Corporate and Other
Corporate and Other First Quarter (Q1) 2017 ($ millions) METRICS Q1 2017 Y-o-Y vs Q1 2016 Adj. Revenue $ 111 (6.6)% Organic(1) Adj. EBITDA $ (43) n/a Corporate Expense $ 70 (7.4)% (1) Organic revenue growth adjusts for FX translation and M&A activity, for a detailed definition see Appendix. For a de
Slide 15: Cash Flow and Capital Allocation Strategy
Cash Flow and Capital Allocation Strategy • Cash flow generation – $363 million Q1 2017 free cash flow • Maintaining a strong balance sheet – $9.5 billion debt outstanding as of March 31, 2017 – Reduced debt outstanding by $1.0 billion during Q1 2017 • Shareholder returns – Return of $95 million to
Slide 16: Competitive Business Model
Competitive Business Model STRONG cash flow generation MAINTAIN strong balance sheet INVEST in growth 16
Slide 17: Appendix
APPENDIX His 17
Slide 18: Consolidated GAAP to Organic Growth Bridge
Consolidated GAAP to Organic Growth Bridge First Quarter 2016 First Quarter 2017 $2,280 2280 $81 $1 $2,259 $2,260 2260 $2,255 $3 $2,240 2240 $2,221 $2,220 2220 $(41) $2,200 2200 $2,181 $2,180 2180 $2,160 2160 $2,140 2140 Q1 2016 Deferred M&A Q1 2016 Q1 2017 Deferred F/X Q1 2017 GAAP Revenue Adjustme
Slide 19: Debt Summary
Debt Summary ($ millions) Dec 31, Mar 31, Rate 2016 2017 Revolver (2021 Maturity) L+125 bps $ 36 $ 242 Undrawn revolver capacity 15 bps 2,964 2,758 Term Loan (2018 Maturity) L+125 bps 550 - 2017 Notes (June) 1.450% 300 300 2018 Notes (April) 2.000% 250 250 2018 Notes (October) 2.850% 750 750 2020 No
Slide 20: Global Financial Solutions Revenue by Currency
Global Financial Solutions Revenue by Currency First Quarter (Q1) 2017 UK POUND | 9% EURO | 9% BRAZIL REAL | 9% US DOLLAR | 57% OTHER | 16% 20
Slide 21: 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 22: Forward-Looking Statements
Forward-Looking Statements • internal or external security breaches of our systems, including those relating to unauthorized access, theft, corruption or loss of personal information and computer viruses and other malware affecting our software or platforms, and the reactions of customers, card asso
Slide 23: Non-GAAP Financial Information and Reconciliation
Non-GAAP Financial Information and Reconciliation 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 transactio
Slide 24: Non-GAAP Financial Information and Reconciliation
Non-GAAP Financial Information and Reconciliation Adjusted revenue consists of reported revenue, increased to reverse the purchase accounting deferred revenue adjustment made upon the acquisition of SunGard. The deferred revenue adjustment represents revenue that would have been recognized in the no
Slide 25: Non-GAAP Financial Information and Reconciliation
Non-GAAP Financial Information and Reconciliation Adjusted net earnings from continuing operations excludes the impact of certain costs and other transactions which management deems non-operational in nature, the removal of which improves comparability of operating results across reporting periods.
Slide 26: Organic Revenue Growth Calculation
Organic Revenue Growth Calculation First Quarter (Q1) 2017 ($ millions) Three Months Ended March 31, 2017 Integrated Global Financial Financial Corporate Solutions Solutions and Other Consolidated Processing and services revenue $ 1,128 $ 1,019 $ 108 $ 2,255 Non-GAAP adjustments: Acquisition deferre
Slide 27: Reconciliation of GAAP to Non-GAAP Financials
Reconciliation of GAAP to Non-GAAP Financials ($ millions, Except per Share Data, Unaudited) Three months ended March 31, 2017 2016 Net earnings from continuing operations attributable to FIS $ 138 $ 55 Provision for income taxes 79 31 Interest expense, net 93 93 Other, net (50) 5 Operating income,
Slide 28: Reconciliation of GAAP to Non-GAAP Financials
Reconciliation of GAAP to Non-GAAP Financials ($ millions, Except per Share Data, Unaudited) Three months ended March 31, 2017 2016 Earnings from continuing operations before income taxes $ 223 $ 90 Provision for income taxes 79 31 Net earnings attributable to noncontrolling interest (6) (4) Net ear
Slide 29: Reconciliation of GAAP to Non-GAAP Financials
Reconciliation of GAAP to Non-GAAP Financials ($ millions, Except per Share Data, Unaudited) Three months ended March 31, 2017 Net cash provided by operating activities $ 454 Non-GAAP adjustments: Capco acquisition related payments 2 Acquisition, integration and severance payments 15 Bond premium 11
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