Fidelity National Information Services, Inc. · NYSE:FIS
Fidelity National Information Services — Q4 2015 Earnings Presentation
32 slides from Fidelity National Information Services's earnings presentation, Feb 9, 2016
Slide 1: Fourth Quarter 2015 Earnings Call
Fourth Quarter 2015 Earnings Call February 9, 2016 ©2016 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 future
Slide 4: Business Summary
Business Summary Gary Norcross President and CEO
Slide 5: 2015 Highlights
2015 Highlights • $6.6 BILLION revenue; up 7% on a constant currency basis • $3.22 adjusted EPS; up 6% on a constant currency basis • $605 MILLION returned to shareholders For a description of non-GAAP measures and a reconciliation of GAAP to non-GAAP measures, see Appendix. 5
Slide 6: SunGard Acquisition Strategic Rationale
SunGard Acquisition Strategic Rationale CONTRIBUTES growth with new offerings and markets ENHANCES client base with deepening of relationships STRENGTHENS depth of talent and leadership DRIVES financial performance 6
Slide 7: SunGard Integration Update
SunGard Integration Update • Milestones to date – Consolidation of corporate personnel ahead of plan – Combined company leadership established – U.S. payroll and benefits transitioned – New brand roll-out completed • Synergy expectations tracking confidently ‒ Exit 2016 with cost synergy run-rate of
Slide 8: Full Year Operational Highlights
Full Year Operational Highlights Integrated Financial Solutions Clear2Pay Global Financial Solutions • Growth in digital • Growth in real-time • Contract expansion in • Core takeaways payment processing Brazil • Increases in EMV card • Good example of • IP-led solution sales production disciplined M
Slide 9: Consistent Execution of Strategy
Consistent Execution of Strategy • Investing for GROWTH • MAINTAINING a strong balance sheet • Returning cash to our SHAREHOLDERS 9
Slide 10: Financial Summary
FINANCIAL SUMMARY Woody Woodall Chief Financial Officer
Slide 11: Consolidated Results
Consolidated Results ($ millions, adjusted, except per share data) METRICS Q4 Full Year Revenue $ 1,922 $ 6,643 Growth (Y/Y) 13.8% 3.4% Constant Currency Growth (Y/Y) 17.5% 7.2% EBITDA $ 624 $ 2,033 Growth (Y/Y) 18.7% 5.5% Constant Currency Growth (Y/Y) 21.0% 7.8% EBITDA Margin 32.5% 30.6% Net Earni
Slide 12: Integrated Financial Solutions
Integrated Financial Solutions ($ millions, adjusted) METRICS Q4 Full Year Revenue $ 1,020 $ 3,929 Growth (Y/Y) 3.1% 1.6% EBITDA $ 405 $ 1,570 Growth (Y/Y) 2.8% 1.9% EBITDA Margin 39.7% 40.0% For a description of non-GAAP measures and a reconciliation of GAAP to non-GAAP measures, see Appendix. 12
Slide 13: Integrated Financial Solutions
Integrated Financial Solutions Revenue Contribution – Q4 & Full Year Revenue Composition – Full Year ($ millions) RECURRING REVENUE | 88% Q4 GROWTH Full Year GROWTH PROFESSIONAL SERVICES | 8% Payment Solutions $ 422 0% $ 1,643 -2% SOFTWARE | 1% Business Solutions 296 3% 1,141 3% OTHER | 3% Banking S
Slide 14: Global Financial Solutions
Global Financial Solutions ($ millions, adjusted) METRICS Q4 Full Year Revenue $ 902 $ 2,717 Growth (Y/Y) 28.7% 6.2% Constant Currency Growth (Y/Y) 37.7% 15.7% EBITDA $ 259 $ 629 Growth (Y/Y) 49.6% 15.2% Constant Currency Growth (Y/Y) 58.4% 25.2% EBITDA Margin 28.7% 23.1% For a description of non-GA
Slide 15: Global Financial Solutions
(1) Global Financial Solutions Revenue Contribution – Q4 & Full Year Revenue Composition – Full Year ($ millions) RECURRING SOLUTIONS & SERVICES REVENUE(3) | 68% CC Growth CC Growth Q4 Incl. SG Full Year Incl. SG North America $ 436 42% $ 1,249 9% CONSULTING / PROFESSIONAL SERVICES | 28% Europe 278
Slide 16: Cash Flow and Capital Allocation Strategy
Cash Flow and Capital Allocation Strategy • Free cash flow of $399 million in Q4 and $921 million Full Year 2015 • Maintaining a strong balance sheet – $11.5 billion debt outstanding as of December 31, 2015 – Focus on deleveraging • Shareholder Returns – Return of $605 million to shareholders 16
Slide 17: 2016 Guidance
FINANCIAL OVERVIEW 2016 Guidance METRIC GUIDANCE Organic Revenue Growth 3.0% to 4.0% Adjusted EBITDA $2.84 to $2.90 billion Earnings per share, as adjusted $3.70 to $3.80 Growth, as adjusted + 15% to 18% Free cash flow conversion ~ adjusted net earnings 17
Slide 18: Closing: Investing in growth, market leadership, shareholder returns
INVESTING in growth MARKET leadership Committed to delivering superior SHAREHOLDER RETURNS 18
Slide 19: Appendix
APPENDIX
Slide 20: 2016 Guidance – Additional Assumptions
FINANCIAL OVERVIEW 2016 Guidance – Additional Assumptions METRIC GUIDANCE Currency Drivers of FX Impact Brazilian Real Negative F/X Impact to Revenue ~ 150 million Euro Adjusted D&A Indian Rupee ~ 570 million (Excludes Purchase Accounting Amort.) Net Interest Expense ~ 370 million Effective Tax Rate
Slide 21: Debt Summary
Debt Summary ($ in millions) Dec 31, Dec 31, Rate 2015 2014 Revolver (2019 Maturity) L+125 bps $ 1,250 $ 795 Undrawn revolver capacity 15 bps 1,750 2,205 Term Loan (2017 Maturity) L+125 bps 1,300 1,300 Term Loan (2018 Maturity) L+125 bps 1,500 - 2017 Notes 1.450% 300 300 2018 Notes 2.000% 250 250 20
Slide 22: 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 23: Forward-Looking Statements
Forward-Looking Statements •the risks of reduction in revenue from the elimination of existing and potential customers due to consolidation in, or new laws or regulations affecting, the banking, retail and financial services industries or due to financial failures or other setbacks suffered by firms
Slide 24: 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 25: Definitions of Non-GAAP Financial Measures
Definitions of Non-GAAP Financial Measures Constant currency revenue is reported revenue excluding the impact of fluctuations in foreign currency exchange rates in the current year. Growth in revenue presented for 2015 year to date on a constant currency basis reflects a comparison of constant curre
Slide 26: Definitions of Non-GAAP Financial Measures
Definitions of Non-GAAP Financial Measures (continued) Adjusted net earnings per diluted share, or adjusted EPS, reflects adjusted net earnings divided by weighted average diluted shares outstanding. Adjusted cash flow from operations reflects GAAP cash flow from operations as adjusted for the net c
Slide 27: Reconciliation of GAAP to Non-GAAP Financial Measures
Reconciliation of GAAP to Non-GAAP Financial Measures ($ in Millions, Except Per Share Data, Unaudited) Three Months Ended December 31, 2015 Amounts may not sum due to rounding 27
Slide 28: Reconciliation of GAAP to Non-GAAP Financial Measures
Reconciliation of GAAP to Non-GAAP Financial Measures ($ in Millions, Except Per Share Data, Unaudited) Year Ended December 31, 2015 Amounts may not sum due to rounding 28
Slide 29: Reconciliation of GAAP to Non-GAAP Financial Measures
Reconciliation of GAAP to Non-GAAP Financial Measures ($ in Millions, Unaudited) Three Months Ended December 31, 2015 Amounts may not sum due to rounding 29
Slide 30: Reconciliation of GAAP to Non-GAAP Financial Measures
Reconciliation of GAAP to Non-GAAP Financial Measures ($ in Millions, Unaudited) Year Ended December 31, 2015 Amounts may not sum due to rounding 30
Slide 31: Constant Currency Revenue Growth Calculation
Constant Currency Revenue Growth Calculation Fourth Quarter ($ in millions) 2015 2014 Constant Reported Constant Reported FX Currency Revenue Growth Integrated Financial Solutions $ 1020.4 $ 0.3 $ 1020.7 $ 989.3 3.2% Global Financial Solutions 902.2 62.8 965.0 701.0 37.7% Corporate (0.3) - (0.3) (1.
Slide 32: Constant Currency Revenue Growth Calculation
Constant Currency Revenue Growth Calculation Full Year ($ in millions) 2015 2014 Constant Reported Constant Reported FX Currency Revenue Growth Integrated Financial Solutions $ 3,928.9 $ 1.9 $ 3,930.8 $ 3,867.8 1.6% Global Financial Solutions 2,717.1 241.5 2,958.6 2,557.3 15.7% Corporate (3.3) (0.3)
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