Fidelity National Information Services, Inc. · NYSE:FIS
Fidelity National Information Services — RBC 2010 Technology, Media and Communications Conference
30 slides from Fidelity National Information Services's conference presentation, Jun 9, 2010
Slide 1: RBC 2010 Technology, Media and Communications Conference
RBC 2010 Technology, Media and Communications Conference June 9, 2010
Slide 2: Forward Looking Statements and Additional Information
Forward Looking Statements and Additional Information This presentation contains statements related to FIS' future plans and expectations and, as such, includes "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act
Slide 3: Use of Non-GAAP and Pro Forma Measures
Use of Non-GAAP and Pro Forma 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 t
Slide 4: FIS Today
FIS Today 4 > $5 Billion 2009 pro forma Revenue > $1.4 Billion 2009 pro forma EBITDA Approximately $10 Billion market cap More than 14,000 client relationships .. . . In more than 100 countries Leading Global Financial Technology Provider Note: Calculation based on adjusted revenue and adjusted EBIT
Slide 5: Leading Global Financial Technology Provider
Leading Global Financial Technology Provider 5 More than 14,000 client relationships in over 100 countries Established operations in more than 27 countries 31,000 employees strong 15,000 U.S. based 16,000 off-shore Milwaukee, WI Little Rock, AR Jacksonville, FL Orlando, FL St. Petersburg, FL United
Slide 6: Key Management Priorities
Key Management Priorities 6 S T R O N G E X E C U T I O N Organic Revenue Growth Intense Client Focus High Performance Culture Achieve Synergy Targets Leverage Combined Product Set, Customer Base, Global Footprint Service, Innovation, Value Attract and Retain Industry's Most Talented Employees Prove
Slide 7: Financial Strength, Robust Business Model
High Recurring Revenues Broad and Diverse Customer Base Strong Earnings Growth and Free Cash Flow Prudent Capital Management Financial Strength, Robust Business Model 7 Meaningful Margin Expansion
Slide 8: Significant Recurring and Contractual Revenue
Significant Recurring and Contractual Revenue 8 Processing and Maintenance 85% Professional Services 10% Other 5% Long-term contracts Account based Transaction based Monthly maintenance Consulting services Implementation services Software 3% Equipment 1% Termination Fees 1% Predictability is Enhance
Slide 9: Broad and Diverse Client Base
Broad and Diverse Client Base 9 Healthcare Government Commercial Approximately 7,000 debit, credit and prepaid card issuers 2,600 core processing customers, including > 300 outside the U.S. Relationships with 40 of the top 50 global banks, including 9 of the top 10 More than 14,000 financial institu
Slide 10: Payment Solutions Group: Substantial Breadth and Scale
Substantial Breadth and Scale Payment Solutions Group 10 Debit Card Processing Prepaid Card Processing Bill Payment Network Solutions Electronic Funds Transfer Automated Clearing House Debit/EFT/ ePayment Credit Card Processing Loyalty Merchant Credit Check Verification and Warranty Payroll Check Ca
Slide 11: Financial Solutions Group
Financial Solutions Group 11 $1.8 Billion 2009 Pro Forma Revenue Deposit and Loan Account Processing Accounting and General Ledger Data Access and Integration Lending Solutions Trust and Wealth Management Account Origination Branch Platforms Online Banking Mobile Banking Voice Response Risk Manageme
Slide 12: International Solutions Group
International Solutions Group 12 $0.8 Billion 2009 Pro Forma Revenue Core banking Payment switch Credit card Origination Core banking Credit card Payment switch Prepaid Merchants Commercial Lending Latin America EMEA Asia Core banking Payment switch ATM (India) Commercial Lending Australasia Credit
Slide 13: Financial Overview
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Slide 14: Financial Highlights 1st Quarter, 2010
Financial Highlights 1st Quarter, 2010 14 Adjusted revenue of $1.3 billion, up 3.8% 1.8% increase in constant currency Adjusted EBITDA margin of 28.8%, up 340 bps Adjusted EPS of $0.41 Adjusted free cash flow of $241 million Debt-to-EBITDA of 2.1x at March 31, 2010 Refer to appendix for reconciliati
Slide 15: Operating Highlights
Operating Highlights 15 Improving sales momentum Multiple core processing wins across all channels Two new "Top 100" core clients Community and mid-tier competitive takeaways Strong merger related cross-sales, including two "Top 50" banks TouchPoint, NYCE Network services, loan origination, business
Slide 16: Q2 2010 Outlook
Q2 2010 Outlook 16 Refer to appendix for reconciliation of non-GAAP measures to related GAAP measures.
Slide 17: Debt Outstanding (existing facilities)
Debt Outstanding (existing facilities) ($ millions) 17 Debt Summary (1) Term Loan C was repaid in May 2010.
Slide 18: Proposed Leveraged Recapitalization and Share Repurchase Plan
Proposed Leveraged Recapitalization and Share Repurchase Plan $2.5 billion share repurchase plan announced May 25, 2010 Modified "Dutch auction" tender offer Price range of $29.00 to $31.00 per share Complete share repurchase in early to mid-August 18
Slide 19: Proposed Leveraged Recapitalization and Share Repurchase Plan
Debt outstanding 3/31/10 $3,053 New Senior Debt/Term Loans 3,400 Refinance existing Term Loan B (793) Term Loan C repaid May 2010 ( 50) Preliminary pro forma debt $5,610 Proposed Leveraged Recapitalization and Share Repurchase Plan ($ millions) 19 For illustrative purposes only. Final terms, includi
Slide 20: Financial Policy
Financial Policy 20 Scheduled debt repayments Targeted leverage ratio: ~ 2.5x New product development Technology enhancements Annual cash dividends of $0.20 per share Fund strategic opportunities Consider additional share repurchases Reduce Outstanding Debt Fund Organic Growth Initiatives Maintain C
Slide 21: Appendix
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Slide 22: Revenue Composition by Segment
Revenue Composition by Segment 22 Financial Solutions Payment Solutions International Solutions Other 7% Processing and Maintenance 78% Professional Services 15% Processing and Maintenance 90% Other 3% Professional Services 7% Processing and Maintenance 85% Other 5% Professional Services 10% Revenue
Slide 23: GAAP to Non-GAAP Reconciliation, Three Months Ended March 31, 2010
GAAP TO NON-GAAP RECONCILIATION Three Months Ended March 31, 2010 (In millions, except per share data) 23 23
Slide 24: GAAP to Non-GAAP Reconciliation, Three Months Ended March 31, 2009
GAAP TO NON-GAAP RECONCILIATION Three Months Ended March 31, 2009 (In millions, except per share data) 24 24
Slide 25: Notes to GAAP to Non-GAAP Reconciliation
Notes to GAAP to Non-GAAP Reconciliation For the Three-Month Periods ended March 31, 2010 and 2009 25 25
Slide 26: Supplemental Non-GAAP Financial Information, Q1 2010
SUPPLEMENTAL NON-GAAP FINANCIAL INFORMATION Three Months Ended March 31, 2010 (In millions) 26 26
Slide 27: Supplemental Non-GAAP Financial Information, Q1 2009
SUPPLEMENTAL NON-GAAP FINANCIAL INFORMATION Three Months Ended March 31, 2009 (In millions) 27 27
Slide 28: Supplemental Non-GAAP Financial Information, Twelve Months 2009
SUPPLEMENTAL NON-GAAP FINANCIAL INFORMATION Twelve Months Ended December 31, 2009 (In millions) 28 28
Slide 29: Reconciliation of Cash Flow Measures
RECONCILIATION OF CASH FLOW MEASURES Three Months Ended March 31, 2010 (In millions) 29 Three months ended March 31, 2010 Three months ended March 31, 2010 Three months ended March 31, 2010 Three months ended March 31, 2010 Three months ended March 31, 2010 GAAP Adj Adjusted Cash flows from operatin
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