ACI Worldwide, Inc. · NASDAQ:ACIW
ACI Worldwide — UBS Global Technology and Services Conference 2009
31 slides from ACI Worldwide's conference presentation, Jun 9, 2009
Slide 1: UBS Global Technology and Services Conference
UBS Global Technology and Services Conference June 9, 2009 New York City
Slide 2: Safe Harbor For Forward-Looking Statements
Private Securities Litigation Reform Act of 1995 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 provision
Slide 3: Ron Totaro, Chief Operating Officer
Ron Totaro, Chief Operating Officer
Slide 4: Topics
Topics • Our Product Portfolio • Market Environment • Customer by Type • Geographic Channels • Financial Metrics 4
Slide 5: ACI Product History
ACI Product History BASE24-eps BASE24-eps Automated Automated Case Case ON/2 ON/2 Management Management OpeN/2 OpeN/2 OCM24 OCM24 Payments Payments ASSET ASSET Manager Manager TRANS24 TRANS24 MTS MTS Enterprise Enterprise BASE24-atm BASE24-atm Enrollments Enrollments Network Network Express Trade Tr
Slide 6: ACI Product Portfolio
ACI Product Portfolio ACI Retail Payments Solution ACI Wholesale Payments Solution Payments Hubs Payments Hub – BASE24 – MTS-eps – BASE24-eps Online Banking – ACI Commerce Gateway – ACI Enterprise Banker – ACI Retail Commerce Server Trade Finance Payment Settlement and Card Management – ACI Global T
Slide 7: BASE24-eps
BASE24-eps Functionality / Market Served Key Competitors • Provides an end-to-end solution for the acquisition, • Software Providers authorization and recording of consumer based electronic – S1 payments – Fidelity (eFunds) • High volume, high availability, multi-platform transaction – Regional (Ala
Slide 8: PRM
PRM Functionality / Market Served Key Competitors • Provides an end-to-end solutions for real-time and • Fair Isaac enterprise payments risk management: Fraud Detection • Actimize and Money Laundering Detection • Norkom • Transaction monitoring solution to detect fraudulent and • Fortent money laund
Slide 9: Enterprise Banker
Enterprise Banker Functionality / Market Served Key Competitors • An online banking product that supports all market • S1 segments, from consumer to large corporate customers • Fundtech • Real-time and batch balance and transaction reporting, • Intuit/DI with images, online statements • ACH originat
Slide 10: General Market Update
General Market Update • Cost pressures on our customers lead to product sales opportunities – Inefficient technologies and processes – Exacerbated by M&A activity seen over past half year • Heavy focus on compliance, fraud and risk management – Good for the ACI hub multi-product solution sales – Our
Slide 11: Market Trends and Drivers
Market Trends and Drivers • U.S. credit crisis leads to extreme focus on ROI, and accelerated M&A • Continued desire to reduce costs and increase productivity – Need for end-to-end solutions – Need for platform and solutions convergence – Need to automate manual, cumbersome processes – ACI will driv
Slide 12: Customer Revenue by Industry Type
Customer Revenue by Industry Type Industry Type CY 2008 Revenue % Finance 288,144 69% Banks, mainly Tier 1 & 2 Other 10,419 2% Healthcare, Colleges, Government, Social Svcs, etc Processor 90,842 22% Processors and Credit Card companies Retail 28,248 7% Retail Grand Total 417,653 100% Industry Type P
Slide 13: Historic Sales By Quarter 2008-2009
Historic Sales By Quarter 2008-2009 Sales Mix by Category Add-on Business inc. Capacity Total Economic Value of Upgrades & Quarter-End Sales New Accounts New Applications Services Term Extentions 3/31/2008 $63,813 $1,311 $9,621 $38,101 $14,781 2% 15% 60% 23% 6/30/2008 $99,938 $15,856 $23,487 $45,434
Slide 14: 2009 Opportunities- Americas
2009 Opportunities- Americas • North American Banks – Top bank ATM systems currently on processors – Hub consolidation and cross-sell – Online banking consolidation – Risk Management cross-sell and upsell – Wholesale payments in Canada • North American Retailers – Replace redundant, fragmented legac
Slide 15: 2009 Opportunities- EMEA
2009 Opportunities- EMEA • BASE24-eps – Focus on Tier 1 migrations and new names • Payments HUB consolidation opportunities • Build Operate Transfer model creates opportunity during a difficult economic climate and with major M&A activity • Wholesale focus on SEPA-express with market regulations dri
Slide 16: 2009 Opportunities- Asia
2009 Opportunities- Asia • North Asia is the growth opportunity – Japan upgrading retail/wholesale infrastructure – China banks looking for payment hubs & upgrade risk • India volumes continue to grow – Indian banks rapidly extend coverage in consumer payments • Australia consolidates – Drives urgen
Slide 17: Cost Management
Cost Management • Annualized gross cost savings of $30 million achieved in 2008 • Rationalized headcount in mature markets and reinvested in growth regions • A further $8 million in cost savings which will complete restructuring in 2009 • Approximately $11.5 million to be re-invested in products, se
Slide 18: Financial Review
Financial Review Scott Behrens, Chief Financial Officer
Slide 19: ACIW Quarterly Revenue by Type
ACIW Quarterly Revenue by Type 70,000 4 Qtr. Average by Revenue Type 60,000 50,000 Recurring Revenue ILF' s & Capacity 40,000 Impl. & Professional Svcs. 30,000 20,000 10,000 QE Dec07 QE Mar08 QE Jun08 QE Sep08 QE Dec08 QE Mar09 In $ Thousands Revenue Type QE Mar07 QE Jun07 QE Sep07 QE Dec07 QE Mar08
Slide 20: ACIW Annual Revenue by Type
ACIW Annual Revenue by Type 6% 450,000 $418MM $415 - $425MM CAGR (3 Yr.) 400,000 $374MM 86,548 350,000 71,496 300,000 94,999 250,000 91,667 Impl. & Professional Svcs. ILF' s & Capacity 200,000 Recurring Revenue 150,000 236,106 100,000 211,048 50,000 - CY 2007 Actuals CY 2008 Actuals CY 2009 Guidance
Slide 21: ACIW Quarterly Revenue from Backlog vs. Sales
ACIW Quarterly Revenue from Backlog vs. Sales 100,000 4 Qtr. Average Revenue from Backlog, Sales 90,000 80,000 70,000 60,000 From Backlog From Current Qtr. Sales 50,000 40,000 30,000 20,000 10,000 - InQE Dec07 $ Thousands QE Mar08 QE Jun08 QE Sep08 QE Dec08 QE Mar09 Total Revenue QE Mar07 QE Jun07 Q
Slide 22: EBITDA (Adjusted) Trending
EBITDA (Adjusted) Trending EBITDA Adjusted 80.0 72.9 73.3 75.0 70.0 63.2 65.0 60.0 55.0 50.0 45.0 39.7 40.0 35.0 30.0 CY 2005 CY 2006 CY 2007 CY 2008 In $ Millions CY 2005 CY 2006 CY 2007 CY 2008 EBITDA 61.8 55.1 17.4 52.0 Non-Recurring Items Stock Options - 2.6 9.2 - Restructuring & Emp. Related -
Slide 23: Operating Free Cash Flow 2007-08-09
Operating Free Cash Flow 2007-08-09 70,000 ACIW Operating Free Cash Flow ex. IBM $65MM ACIW Operating Free Cash Flow 60,000 $53MM 50,000 $43MM $35 - $40MM 40,000 $25 - $30MM $29MM 30,000 20,000 10,000 0 2007 Actual 2008 Actual 2009 Estimate In $ Thousands 2007 Actual 2008 Actual 2009 Estimate GAAP C
Slide 24: Annual Guidance
Annual Guidance Key Metrics 2008 Actuals 2009 Guidance Sales $460 $450-460 Revenue 418 415-425 GAAP Operating Income 22 35-40 • Sizable term renewal expected to close in June or July – Timing of both sales and revenues now anticipated in Q2 or Q3 depending on contract signing date of late June or ea
Slide 25: Disciplined Capital Allocation
Disciplined Capital Allocation Objective: Allocate capital to optimize shareholder returns Organic Share Business Acquisition Repurchase Growth Program • Internal Investments • Bolt-on acquisitions • $210M total authorization – Geographic build and alliances aligned – Increased out with growth strat
Slide 26: Historical Capital Allocation
Historical Capital Allocation (dollars in millions) • Over the past four years, we have deployed cash and cash flow to fund our capital activities. • We also entered into a $150 million credit facility ($75 million outstanding) to provide more flexibility. $240 $208 $210 $180 $150 $120 $169 $90 $90
Slide 27: 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 28: Forward-Looking Statements
Forward-Looking Statements • Any or all of the forward-looking statements may turn out to be wrong. They can be affected by the judgments and estimates underlying such assumptions or by known or unknown risks and uncertainties. Many of these factors will be important in determining our actual future
Slide 29: Forward-Looking Statements
Forward-Looking Statements • The recent restatements of our financial statements; • The consolidation in the financial services industry that may adversely impact the number of customers and revenues in the future; • The economic changes in the banking and financial services industries, that apply t
Slide 30: Forward-Looking Statements (Continued)
Forward-Looking Statements (Continued) • The possibility that if we are unable to successfully perform under the terms of our alliance with IBM or our customers are not receptive to the alliance, then our business, financial condition and/or results of operations may be adversely affected; • Our out
Slide 31: IMAI
IMAI EVERY SECOND. EVERY DAY.
ACI Worldwide — UBS Global Technology and Services Conference 2009 on 6ix