Fidelity National Information Services, Inc. · NYSE:FIS
Fidelity National Information Services — Investor Day (February 2012)
80 slides from Fidelity National Information Services's investor day presentation, Feb 14, 2012
Slide 1: 2012 Investor Day
2012 Investor Day February 14, 2012 Orlando, Fla. His
Slide 2: Forward Looking Statements
Forward Looking Statements This presentation contains “forward-looking statements” within the meaning of the U.S. federal securities laws. Statements that are not historical acts, including statements about revenue, organicrevenue, earnings per share, margin expansion and cash flow, aswell as other
Slide 3: 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 4: Agenda
Agenda Speaker Strategic positioning Frank Martire, chief executive officer Drivingsuperior performance Gary Norcross, chief operating officer Driving shareholder value Mike Hayford, chief financial officer Q&A Executive panel Topictables Business leaders
Slide 5: Frank Martire: Strategic positioning
Frank Martire President and CEO Strategic positioning His
Slide 6: Agenda
Agenda Key strengths Our strategy Focused on performance His .
Slide 7: Why Invest in FIS?
Why Invest in FIS?
Slide 8: FIS Today: Global Scale, Market Leaders
Key FIS Today TREN OUR STRATEGY FOCUSED ON PERFORMANCE Global Scale Market Leaders! Revenue EBITDA Operating cash flow Clients Countries Employees $5.7B $1.7B $1.2B 14,000 100+ 33,000 y THE 2011 FINTECH 100
Slide 9: Growing Global Presence
REN GT Growing Global Presence OUR STRATEGY FOCUSED ON PERFORMANCE Europe + Established core and payment provider + 2,000 employees North America + Market leader Asia Pacific + Growing core and payments presence + 6,000 employees * Core andpayment solutions + 15,000 employees Latin America + #Lcard
Slide 10: Strong Track Record of Execution 2008-2011
KEY STREN Strong Track Record of Execution 2008 — 2011 WS OUR STRATES FOCUSED ON PERFORMANCE ($B except per share data) Revenue: EBITDA: EPS: Predictable High margins with Mid-teens >80% recurring opportunity to expand EPS growth $5.7 $2.27 $1.7 2008 2011 2008 2011 2008 2011 (= |S _ ters oater 200 5
Slide 11: First in Financial Technology
OUR STRATEGY FOCUSED ON PERFORMANCE First in Financial Technology * Financial performance * Disciplined capital allocation * Superior value creation Maximize Returns a
Slide 12: Agenda
Agenda Key strengths Our strategy Focused on performance His 2
Slide 13: Focus Shifting from Acquisition and Integration to Optimization
key STRENGTHS FOCUSED ON PERFORMANCE Focus Shifting from Acquisition and Integration to Optimization 2003 — 2009 Acquire St 2009 — 2011 egic Evolut' Integrate and Build Global Scale 2012-2015 Optimize Performance
Slide 14: Four Point Strategy to Drive Superior Performance
FOCUSED ON PERFORMANCE key STRENGTHS Four Point Strategy to Drive Superior Performance 1. Expand client relationships 2. Buy, build or partner to add solutions to cross sell 3. Lead market through transformation 4. Continuous improvements to drive margin expansion His ; -
Slide 15: Expand Client Relationships
key STRENGTHS Expand Client Relationships SED OM PERFORMANCE North America Asia Pacific Latin = America 2 HIS
Slide 16: Expand Client Relationships: North America
key STRENGTHS Expand Client Relationships SED OM PERFORMANCE North America HIS
Slide 17: Expand Client Relationships
KEY STRENGTHS FOCUSED ON PERFORMANCE Expand Client Relationships His uv
Slide 18: Expand Client Relationships: Latin America
key STRENGTHS Expand Client Relationships USED ON PERFORMANCE ee Latin America HIS
Slide 19: Expand Client Relationships
Expand Client Relationships His
Slide 20: Buy, Build or Partner to Add Solutions to Cross Sell
key STRENGTHS FOCUSED ON PERFORMANCE Buy, Build o or Partner to Add Solutions to Cross Sell Existing Solutions New Solutions * Broadest range of products * Continue to invest for growth and services * Provide innovative products to our clients * Help clients compete more effectively J New Growth Dri
Slide 21: Lead Market through Transformation
key STRENGTHS Lead Market through Transformation SED OM PERFORMANCE FIS leads the way Transform the way * Thought leadership financial institutions do business * Strong domain expertise * Leading technology solutions HIS
Slide 22: Continuous Improvements to Drive Margin Expansion
KEY STRENGTHS FOCUSED ON PERFORMANCE Continuous Improvements to Drive Margin Expansion * Day-to-day execution * Annual budget cycle * Targeting 30 bps to 50 bps expansion per year 29.4% 24.6% 2008 2011 2015 HIS
Slide 23: Agenda
Agenda Key strengths Our strategy Focused on performance His 23
Slide 24: Well Positioned for Continued Growth
KEY STRENGTHS OUR STRATEGY Well Positioned for Continued Growth * Orga NiC revenue growth * Margin expansion * Adjusted EPS growth * Operating cash flow His
Slide 25: Focused on Driving Value
Focused on Driving Value Strong Business Fundamentals © High recurring revenue, stable growth © Margin expansion © Strong EPS growth © Strong cash flow Enhanced Returns Focused Use of Cash Flow * Debt repayment Dividends © Share repurchases
Slide 26: Driving Performance: Gary Norcross
Driving Performance Gary Norcross Chief Operating Officer cece al
Slide 27: Agenda
Agenda Market positioning Strategic execution Driving superior performance Fis , ,
Slide 28: FIS Enjoys Broad Market Coverage
STRATEGIC EXECUTION DRIVING SUPERIOR PERFORMANCE FIS Enjoys Broad Market Coverage Non-Fl Leverages solution set N.A. Community (<$10B) Strong competitive position International Market differentiator N.A. Large Fl (>$10B) Leading market position
Slide 29: Comprehensive Solutions across All Market Segments
RATES! WARKET POSITIONING EXECUTION DRIVING SUPERIOR PERFORMAN E Comprehensive Solutions across All Market Segments <$10B North America ¢ § Large number of institutions Single-source buyers Fully-integrated technology 2012 projected spend: $24B Moderate growth opportunity Market Attributes + Strong
Slide 30: Unparalleled Distribution Capability
Unparalleled Distribution Capability BRRET POSITIONING | STRATEGIC EXECUTION OFRIVING SUPERIOR PERFORMANCE Europe + 2,000 employees North America + 15,000 employees Asia Pacific + 6,000 employees ‘ée, Latin America | noon + 10,000 employees 2 v
Slide 31: Market Dynamics Play to Our Strengths
WARKET POSITIONING Market Dynamics Play to Our Strengths STRATEGIC EXECUTION DRIVING SUPERIOR PERFORMANCE Market Dynamics * Continued regulatory intervention * Increasing competitive pressures * Ongoing profitability pressures * Stringent capital requirements * Inefficiencies of historical decisions
Slide 32: Ongoing Market Shift to Outsourcing
WARKET P Ongoing Market Shift to Outsourcing ® ® @ <$10B North America >$10B North America International TTOWIWG] STRATEGIC EXECUTION DRIVING SUPERIOR PERFORMANCE Transformative Services Solution Outsourcing Application Outsourcing Third-party Solutions Point-to-point Solutions a! Internal Build and
Slide 33: Market Trends Create Opportunities for FIS
WARKET POSITIONING TRATES! EXECUTION priving UPERIOR PERFORMANCE Market Trends Create Opportunities for FIS Leveraging FIS’ Strengths Well positioned in key markets. Market dynamics drive opportunities Ongoing shift to outsourcing Broad market coverage, global distribution. network, unmatched soluti
Slide 34: Agenda
Agenda Market positioning Strategic execution Driving superior performance His .
Slide 35: Successful Execution Drives Profitable Growth
DRIVING SUPERIOR PERFORMANCE MARKET POSITIONING Successful Execution Drives Profitable Growth @ Solutions FIS Strengths * Leverage our Fundamental Business * Develop high-growth Innovation * Deliver Services around intellectual property @) Segment * Further penetrate Large Financial Institutions @)
Slide 36: Ongoing Innovation through Disciplined Portfolio Management
MARKET POSITIONING DRIVING SUPERIOR PERFORMANCE Ongoing Innovation through Disciplined Portfolio Management Solutions Mature ||| Traditional R&D + Integrated Cores —e——EE * Traditional Payments Product Maturity Immature Immature Mature: Market Maturity HIS . sion core, all ch Internet banking, bill
Slide 37: Ongoing Innovation through Disciplined Portfolio Management
market positioning [st Ongoing Innovation through Disciplined Portfolio Management TEGIC ERECUTION] DRIVING SUPERIOR PERFORMANCE Solutions Mature ||| Established Se + Integrated Cores Solutions * Traditional Payments + Next Generation Core 8 = Emarcin * Integrated Channels Ba 8 B Develop and Acquire
Slide 38: Ongoing Innovation through Disciplined Portfolio Management
MARKET POSITIONING Ongoing Innovation through Disciplined Portfolio Management ESIC EVECUTION] ORIVING SUPERIOR PERFORMANCE Solutions Mature Established Solutions + Integrated Cores + Traditional Payments Traditional R&D * Next Generation Core + Integrated Channels + Integrated Fraud Emerging Soluti
Slide 39: Ongoing Innovation through Disciplined Portfolio Management
ESIC EXECUTION] DRIVING SUPERIOR PERFORMANCE MARKET POSITIONING Ongoing Innovation through Disciplined Portfolio Management Solutions Mature * Integrated Cores Established Solutions Traditional R&D Emerging Solutions + Integrated Fraud Develop and Acquire Product Maturity EarlyStage Solutions Partne
Slide 40: Fundamental Business Provides a Platform for Growth
MARKET Positioning [STRA Fundamental Business Provides a Platform for Growth DRIVING SUPERIOR PERFORMANCE Fundamental Strengths Global Scale that Supports * Longstanding client relationships 7OM+ credit cards * Steady recurring revenue 75M+ debit cards * Leveragable intellectual property 6M+ bill pa
Slide 41: Innovation Continues to Make an Impact
market positioning [st Teale EXECUTION SUPERIOR PERFORMANCE Innovation Continues to Make an Impact Favorable Market Characteristics * Pace of adoptionis accelerating * Trend to buy versus buildinternally * High-growth revenue FIS Focus * Continued focus on development, partnership, investment and ac
Slide 42: Market Dynamics Creating Demand for Services
DRIVING SUPERIOR PERFORMANCE MARKET Pos Market Dynamics Creating Demand for Services towiue [stRateat wT Market Characteristics 2008 — 2011 Services Revenue ($M) * Increased demand for professional services around intellectual property * Requires unique combination of $1,000 cpo® . as assets and ser
Slide 43: Leader in the Large Financial Institutions Market
MARKET Positionina [STRATEGIC EXECUTION] DRIVING SUPERIOR FEFFORMANCE Leader in the Large Financial Institutions Market Market Characteristics * Strategy-based investment decisions Institutions >$10B Drive 73% of Total Spend * Trend to buy versus build internally * Growing need to streamline process
Slide 44: Unmatched International Distribution and Scale
TEGIC EXECUTION] DRIVING SUPERIOR FEFFORMANCE market positioning [st Unmatched International Distribution and Scale Market Characteristics FIS International Revenue * Trend to outsourcing * In-house legacy solutions are unsustainable * Innovative solutions needed * Interoperability of systems lackin
Slide 45: Strong Platform for Growth
STR wT DRIVING SUPERIOR PERFORMANCE MARKET POSITIONING Strong Platform for Growth Solution Breadth and Expertise Have Been Built Strategically over Many Years figerv. Jesstery accenture TEMENOS oracle Tata [nfog\s’ International G 4 4 q q q q a >$10B North a a a 4 Ee America G q ze “m"|@|@ @ ueeraic
Slide 46: Agenda
Agenda Market landscape Strategic execution Driving superior performance Fis .
Slide 47: Focus Shifting from Acquisition and Integration to Optimization
MARKET POSITIONING STRATEGIC EXECUTION [DRIVING SUPERIOR PERFORMANCE Focus Shifting from Acquisition and Integration to Optimization Strategic Evoluti 2003 — 2009 2009 — 2011 2012-2015 Optimize Performance Integrate and Build Acquire Global Scale
Slide 48: Optimizing Performance
MARKET Po sITioninG STRATEG! eExecuric Optimizing Performance Value-based pricing Focus on client experience Enhanced sales tools Aligning resources with opportunity Resource realignment Technology efficiency Product consolidation Infrastructure Leverage development * Strategic sourcing * Proactivel
Slide 49: Well Positioned to Drive Superior Performance
MARKET POSITIONING STRATEGIC ExEcuTION [B PERIOR PERFO Well Positioned to Drive Superior Performance Unparalleled global distribution Ability to build and deliver products . Superior Performance Transformational capabilities Margin expansion HIS
Slide 50: Driving Shareholder Value: Mike Hayford
Driving Shareholder Value Mike Hayford Chief Financial Officer al
Slide 51: Agenda
Agenda Compelling business model Financial targets Capital allocation framework é His
Slide 52: Business Model Is Compelling
OMPELLING BUST D FINANCIAL TARGETS APITAL ALLOCATION FRAMEWORK Business Model Is Compelling 1. High recurring, stable revenue streams 2. Sustainable, consistent growth 3. Strong EPS growth 4. Strong cash generation HIS
Slide 53: Broad Market Coverage Enhances Growth Opportunities
FINANCIAL TARGETS APITAL ALLOCATION FRAMEWORK Broad Market Coverage Enhances Growth Opportunities Non-Fl Leverages solution set U.S. Community (<$10B) International Strong competitive position Market differentiator U.S. Enterprise (>$10B) Leading market position
Slide 54: Mission Critical Systems Generate High Recurring Revenue
TWPELLING BUS ne zt FINANCIAL TARGETS APITAL AL Tion FRAMEWORK Mission Critical Systems Generate High Recurring Revenue (SM) Strong Mix of Recurring Revenuel#) Professional Services 3% Software 1% Other Processing and Maintenance 2011 revenue mis IS and Matavante proforma 2008 snd 2009 revene Proces
Slide 55: Recurring Demand throughout Recession
DMPELLING BUSINESS MODEL FINANCIAL TARGETS CAPITAL ALLOCATI Recurring Demand throughout Recession ON FRAMEWORK HIs $M $1,000 $800 $600 $400 $200 Professional Services Software so 2008 2009 Hote: Reflects IS and ilatavante pro forms 2008 and 2010 2011 55
Slide 56: Strong Performance Despite Challenging Environment
WPELLING Strong Performance Despite Challenging Environment =L FINANCIAL TARGET APITAL ALLOCATION FRAMEWORK ISIN E ($B except per share data) Revenue: EBITDA: EPS: Predictable High margins with Mid-teens >80% recurring opportunity to expand EPS growth $5.7 $2.27 $1.7 2008 2011 2008 2011 2008 2011
Slide 57: Significant Cash Generation Enables Growth and Flexibility
DMPELLING BUSINESS MODEL FINANCIAL TARGETS CAPITAL ALLOCATION FRAMEWORK Significant Cash Generation Enables Growth and Flexibility Operating Cash Flow Value Enhancing Uses of Cash ($m) $1,200 4 * Reinvest in the business $800 | * Target 2.0x to 2.5x debt-to-EBITDA * Dividends * Repurchases $400 + *
Slide 58: Agenda
Agenda Compelling business model Financial targets Capital allocation framework id His .
Slide 59: Change Creates Opportunities for FIS
OMPELLING BUSINESS Change Creates Opportunities for FIS APITAL AL Market Dynamic Opportunities * Steadilyimproving economy * Continued regulatory intervention investment * Competitive pressures * Demand for leveraged * Consolidation, primarily <$10B market technology solutions * European uncertainty
Slide 60: 2012 to 2015 Outlook: Growth Is Sustainable
OMPELLING BUSINESS MODEL CAPITAL AL Tion FRAMEWORK 2012 to 2015 Outlook — Growth Is Sustainable (SM, except per share data) 2012 - 2015 CAGR Organic Revenue +4% to 7% Adjusted EBITDA margin +30 to 50 bps per year Adjusted EPS +12% to 15% Operating cash flow ~§5B cumulative Debt-to-EBITDA 2.0x to 2.5
Slide 61: Continuous Improvement to Drive Margin Expansion
OMPELLING BUSINESS RK MODEL CAPITAL ALLOCATION FRAMEW Continuous Improvement to Drive Margin Expansion Reinvested Baseline Targeting 30 bps to 50 bps Annually FIVS vecinae
Slide 62: 2012 Outlook: Continued Growth
OM PELLING 2012 Outlook — Continued Growth pUSINESS MODEL CAPITAL AL TION FRAMEWORK 2012 Outlook Organicrevenue growth 3% to 5% EBITDAgrowth 5% to 7% 40 bps to 80 bps Margin expansion $2.47 to $2.57 Earnings per share, as adjusted ~ adjusted Free cash flow conversion i net earnings
Slide 63: 2012 Segment Revenue Growth Outlook
COMPELLING BUSINESS i 2012 Segment Revenue Growth Outlook ODEL TION FRAMEWORK 2012 Targets Organic Growth Financial Solutions Mid single digit Payment Solutions Low single digit International Solutions 10%+ Consolidated 3% to 5% 63
Slide 64: Agenda
Agenda Compelling business model Financial targets Capital allocation framework His
Slide 65: Focus Shifting from Acquisition and Integration to Optimization
OM PELLING BUSINESS MODEL FINANCIAL TARGETS ORK Focus Shifting from Acquisition and Integration to Optimization 2003 — 2009 Acquire St 2009 — 2011 egic Evolut' Integrate and Build Global Scale 2012-2015 Optimize Performance
Slide 66: Balanced Capital Allocation
OMPELLING BUSINESS Balanced Capital Allocation DEL FINANCIAL TARGETS Over $800M Returned to Shareholders 2008 — 2011 Dividends and Share Repurchases Dividends Acquisitions Capital Expenditures Share Repurchases |S _ tt tomst cata rpanaznd honds de 208 anton f and 2010 £25 pillon tender offer epurche
Slide 67: Prior Acquisitions Have Added Product, Scale, Market Breadth
COMPELLING BUSINESS MODEL FINANCIAL TARGETS CAPITAL ALLOCATION FRAMEWORK Prior Acquisitions Have Added Product, Scale, Market Breadth 2007 - 2011 MV Capco | AllOther Scale Add product capability New market Improve competitive positioning International presence 67
Slide 68: Acquisitions Will Be Product Focused
OMPELLING BUSINESS MODEL FINANCIAL TARGETS Acquisitions Will Be Product Focused Pr Strategic Rationale Targeted Financial Measures * Buy products to cross sell * Return on invested capital * Increase speed-to-market * Solid financial performance and outlook * Expand market opportunities * Accretive
Slide 69: $5 Billion in Projected Cumulative Cash from Operations 2012-2015
DMPELLING BUSINESS $5 Billion in Projected Cumulative Cash from Operations 2012 — 2015") ODEL FINANCIAL TARGETS 7 FRAMEWOR Expected Uses of Cash Additional Capacity?) Capital Expenditures Debt Repayment Share Repurchases Dividends et cash provided by operating activites, before capital expenditures
Slide 70: Investing for Growth
DMPELLING BUSINESS Investing for Growth MopeL FINANCIAL TARGETS * Leveraging developmentassets ona global basis — 5% of revenue in 2011 vs. 6% of revenue in 2008 * Developing products for high-opportunity markets * Investingin information security SM $400 $200 $0 Capital Expenditures 2008 2009 2010
Slide 71: Deleveraging the Balance Sheet
DMPELLING BUSINESS ODEL FINANCIAL TARGETS Deleveraging the Balance Sheet 7 FRAMEWOR * Minimal near-term mandatory repayments other than Term Loan A * Refinancing event for Term Loan A and Revolver by mid-2013 * Targeted 2.0x to 2.5x debt-to-EBITDA achievable in near-term (4) $M $5,500 $5,000 $4,500
Slide 72: Enhancing Shareholder Return
OMPELLING BUSINESS Enhancing Shareholder Return MopeL FINANCIAL TARGETS of wiele|(t) Increased Dividend 2.8% yield (Yield) — $0.80 per share annually — 4xincrease 2.8% * Favorable to S&P 500 average 2.2% * Demonstrates confidence in continued growth and free cash flow generation * Underscores manage
Slide 73: Capacity for Meaningful Share Repurchases
DMPELLING BUSINESS Capacity for Meaningful Share Repurchases ODEL FINANCIAL TARGETS 7 FRAMEWOR * Share repurchase authorization increased to $1.0B — Replaces November 2011 authority, of which ~$361M remains — Effective through 12/31/15 * Capacity to repurchase ~12% of outstanding stock assuming curr
Slide 74: Why Invest in FIS? Market leadership
Why Invest in FIS? Market leadership
Slide 75: Q & A
Slide 76: Closing Remarks
Closing Remarks Frank Martire President and Chief Executive Officer cece al
Slide 77: Thank You
Thank You
Slide 78: Appendix
Slide 79: 2012 Assumptions Estimated
2012 Assumptions Estimated Net interest expense $240M to $250M Effective tax rate ~34% Average diluted shares ~295M Minority interest ~$20M 79
Slide 80: Non-GAAP Financial Measures
Non-GAAP Financial Measures Organic Revenue and Adjusted Revenue Organic revenue (2011 and 2010 comparative data) includes reported revenue plus pre-acquisition revenue for companies acquired during the applicable reporting periods. Organic revenue excludes the impact of foreign currency fluctuation
Fidelity National Information Services — Investor Day (February 2012) on 6ix