Aci Worldwide, Inc. · NASDAQ:ACIW
Aci Worldwide — Investor Presentation (May 2010)
35 slides from Aci Worldwide's investor presentation, May 13, 2010
Slide 1: ACI Investor Presentation May 2010
ACI INVESTOR PRESENTATION May 2010
Slide 2: Safe Harbor for Forward-Looking Statements
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- lo
Slide 3: Agenda
Agenda Who is ACI ACI's Marketplace Opportunity Product Overview Financial Summary
Slide 4: Phil Heasley, Chief Executive Officer
Phil Heasley, Chief Executive Officer
Slide 5: A global company with customers in countries
A global company with customers in 92 countries Strategic Centers Regional Sales Office Distributors/Sales Agents Country with ACI customers
Slide 6: Global Market Trends and Drivers
Global Market Trends and Drivers Our target market driven by growth in electronic payment transaction volumes Consolidation creates very large scale needs And inefficient platform redundancies Intense focus on fraud and risk management Continued desire to reduce costs and increase productivity Searc
Slide 7: The Agile Payments Strategy in Action
The Agile Payments Strategy in Action Be the leading provider of a unified solution that initiates, manages, secures and operates payments to maximize the total economic impact for our customers. Identified key products required for a holistic solution. Deconstructing products into software services
Slide 8: ACI Market Share
ACI Market Share BANKING 22 of the top 25 in the U.S. 4 of the top 5 in Brazil 3 of the top 5 in Australia 9 of the top 10 in Canada 7 of the top 10 in Saudi Arabia 4 of the top 10 in Malaysia 42 customers in the top 100 world banks 7 of the top 10 in India 7 of the top 10 in the U.K. 4 of the top 1
Slide 9: Key Trends by Region
Latin America Economic growth and "banking" of the population Replacing legacy technologies Migration to new versions X-selling risk, wholesale, back office Key Trends by Region North America Continued growth in payment volumes Need for payment silo consolidation Banks "in-sourcing" to leverage thei
Slide 10: Key Trends by Region (continued)
Africa Nascent economies, but large opportunity base Entry opportunity for leapfrog technologies (mobile, prepaid) ACI brand and reputation creates opportunities Key Trends by Region Middle East Sophistication and economic growth Replacing legacy technologies X-sell risk wholesale, back office Migra
Slide 11: Markets with the Biggest Opportunity
Markets with the Biggest Opportunity A focused strategy on strategic markets A focus on large and/or high-growth markets United States United Kingdom Canada Japan China Germany Australia France Brazil India Italy Mexico
Slide 12: ACI Product Assets - Sample Customer
FRAUD & RISK MANAGEMENT SOLUTIONS FRAUD DETECTION ACI Proactive Risk Manager COMMON INFRASTRUCTURE & TOOLS CASE MANAGEMENT ACI Automated Case Management System COMMUNICATIONS ACI Network Express ACI Comm Services for Advanced Networking GoldenGate RETAIL PAYMENTS SOLUTIONS ACI Product Assets - Sampl
Slide 13: Discovery: Customer Current Assets Example
U.S. East Legacy Vendor Sun Solaris Australia/NZ Legacy IBM System z UK BASE24 HP Non-stop Scandanavia Outsourced Germany Inhouse IBM Sysem z Holland BASE24 HP Non-stop "Discovery" - Customer* Current Assets Example Italy BASE24 HP Non-Stop Canada BASE24-pos HP Non-stop U.S. West Outsourced Brazil I
Slide 14: Clear efficiencies from regional hub deployment
Clear efficiencies available from regional hub deployment Asia Pacific BASE24-eps PRM, Back Office Latin America BASE24-eps PRM, Back Office "Strawman" - Customer Sample End State North America BASE24-eps PRM, Back Office EMEA BASE24-eps PRM, Back Office Northern Asia BASE24-eps PRM, Back Office
Slide 15: Key Benefits to the Customer
Key Benefits to the Customer Reduced overall costs due to the elimination of redundant silos for payments and risk management Increased efficiency through an integrated end-to-end solution Improved time to market for new products and services leveraging next-generation payment technologies Improved
Slide 16: 2009 / Early 2010 Sales Market Summary
General 2009/ Early 2010 Sales Market Summary Demonstrated ability to renew contracts at profitable rates in 2009 Resulted in higher recurring revenue business throughout the year Strong Q1 2010 add on/term renewal business Impact of financial markets crisis Led to further sales cycle elongation so
Slide 17: Financial Review - Scott Behrens, CFO
Financial Review Scott Behrens, Chief Financial Officer
Slide 18: Q1 2010 Update
Q1 2010 Update Stronger business performance compared to prior year Sales of $81.1 million, up $20 million versus Q1-09 sales Stronger expense management Stronger OFCF Stronger recurring revenue led by maintenance Tracking to full year guidance
Slide 19: Calendar Year Revenue Mix
Calendar Year Revenue Mix 57% 29% 14% 16% 30% 17% 54% 24% 20% 59% 23% 57% 19% 21% 60% $318 $356 $374 $418 $406 $418 - $428
Slide 20: Customer Revenue by Industry Type
Customer Revenue by Industry Type Reduction in bank/credit union revenue due to variance related to Faster Payments license fees recognized in 2008 'Processor' segment is down due to the significant project completion for Mastercard in 2008 which did not recur in 2009
Slide 21: CY 2009 Revenue Concentration
CY 2009 Revenue Concentration 2009 Rank 2008 Rank Channel #1 #15 Americas #2 #1 Americas #3 #2 Global #4 #48 Americas #5 #8 EMEA #6 #6 EMEA #7 #5 Americas #8 #166 Americas #9 #19 Americas #10 #3 Americas #11 #292 EMEA #12 #17 Americas #13 #14 Americas #14 #33 Americas #15 #16 Asia-Pacific #16 #12 Am
Slide 22: Revenue Phasing is consistent over past two years
Revenue Phasing is consistent over past two years Q2 2008 revenue was higher than a normal quarter due to Faster Payments regulatory mandate in the UK Generally we see stronger revenue in the second half of the year of the year of the year of the year of the year
Slide 23: Sales by Agile Payments Type
Sales by Agile Payments Type Sales by Agile Payments Type
Slide 24: 60-Month Backlog Is Driven By Maintenance
60- Month Backlog Is Driven By Maintenance 60- Month Backlog Is Driven By Maintenance 60- Month Backlog Is Driven By Maintenance Implementation and Professional Services more significant in 12-month backlog Recurring revenues (maintenance, license, and hosting fees) comprise majority of 60-month bac
Slide 25: Operating Income / EBITDA 2007-2010
Operating Income / EBITDA 2007-2010 Operating Income Operating EBITDA Operating EBITDA Operating EBITDA
Slide 26: Operating Income doubled over the past quarters
Operating Income doubled over the past 8 quarters Operating income also remains back-half loaded and has grown significantly as we rationalized expenses globally grown significantly as we rationalized expenses globally grown significantly as we rationalized expenses globally
Slide 27: Ongoing Margin Improvement Initiatives
Ongoing Margin Improvement Initiatives ACI's profitability is driven by four main sources of revenue: Maintenance, Application, Services and On Demand. Maintenance Reliable & predictable revenue and cash flow stream Higher maintenance pricing on mature + sunset products or move to newer version Appl
Slide 28: 2010 Guidance
2010 Guidance Revenue Expect revenue growth even as we anticipate fewer term renewals in 2010 where revenue recognition occurs immediately Operating Income Operating income improves from the on-going focus on profitable sales and efficient expense management 15%-20% growth range implies expense grow
Slide 29: Non-GAAP Financial Measures
Non-GAAP Financial Measures Management generally compensates for limitations in the use of non- GAAP financial measures by relying on comparable GAAP financial measures and providing investors with a reconciliation of non-GAAP financial measures only in addition to and in conjunction with results pr
Slide 30: Non-GAAP Financial Measures: Operating EBITDA
Non-GAAP Financial Measures Operating EBITDA is defined as operating income plus depreciation and amortization and non-cash stock compensation. Operating EBITDA is considered a non-GAAP financial measure as defined by SEC Regulation G. ($ in millions) Years ended December 31, Years ended December 31
Slide 31: Non-GAAP Financial Measures: Backlog
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 32: Non-GAAP Financial Measures: Backlog Estimates
Non-GAAP Financial Measures Estimates of future financial results are inherently unreliable. Our backlog estimates require substantial judgment and are based on a number of assumptions as described above. These assumptions may turn out to be inaccurate or wrong, including for reasons outside of mana
Slide 33: 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 34: Forward-Looking Statements: Risk Factors
Forward-Looking Statements All of the 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, restrictions and other financ
Slide 35: Every Second. Every Day.
Ml EVERY SECOND. EVERY DAY.