Fidelity National Information Services, Inc. · NYSE:FIS
Fidelity National Information Services — Investor Day (May 2018)
83 slides from Fidelity National Information Services's investor day presentation, May 8, 2018
Slide 1: 2018 Investor Conference
eoo5oe (— | 2018 INVESTOR CONFERENCE ne EMPOWERING THE FINANCIALWORLD we RAZ
Slide 2: 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 3: FIS 2018 Investor Conference
FIS 2018 Investor Conference STRATEGIC BUSINESS SHAREHOLDER OVERVIEW IN FOCUS VALUE Gary Norcross Bruce Lowthers Woody Woodall President & Chief Executive Officer Chief Operating Officer Chief Financial Officer Integrated Financial Solutions Marianne Brown Chief Operating Officer Global Financial So
Slide 4: Why Investors Choose FIS?
Why Investors Choose FIS? Market High-quality Double-digit Strong Compelling Leadership Recurring EPS Growth Cash Flow Investment Revenue Generation Thesis 4
Slide 5: Agenda: Strategic Overview
Agenda STRATEGIC OVERVIEW FIS Today Gary Norcross President & Chief Executive Officer Our Growth Strategy 5
Slide 6: FIS Today
F I N A N C I A L RF E I V S I E T W O D A Y 2019- 2 0 2 1 O U T L O O K O U R G R O WW T H H Y S I T N R V A E T S E T G IY N F I S ? FIS Today Recognized market leadership in key geographies across the globe 53K+ EMPLOYEES 20K+ CLIENTS FIS #1 100+ COUNTRIES Industry-leading Solutions 6
Slide 7: Why Investors Choose FIS?
F I N A N C I A L RF E I V S I E T W O D A Y 2019- 2 0 2 1 O U T L O O K O U R G R O WW T H H Y S I T N R V A E T S E T G IY N F I S ? Why Investors Choose FIS? Performance driven by growth and scale INCREASED REVENUE EXCEPTIONAL EBITDA CONSISTENT DOUBLE- ROBUST FREE CASH AND SCALE MARGIN EXPANSION
Slide 8: FIS Today: Delivering compelling shareholder value
F I N A N C I A L RF E I V S I E T W O D A Y 2019- 2 0 2 1 O U T L O O K O U R G R O WW T H H Y S I T N R V A E T S E T G IY N F I S ? FIS Today Delivering compelling shareholder value 5-Year Return(1) FIS Returns* 1YR 3YR 10YR 86% 2012 2013 2014 2015 2016 2017 FIS S&P 500 *Trailing 12, 36 and 120 m
Slide 9: Agenda: Our Growth Strategy
Agenda STRATEGIC OVERVIEW FIS Today Gary Norcross President & Chief Executive Officer Our Growth Strategy 9
Slide 10: Our Growth Strategy
F I N A N C I A L RF E I V S I E T W O D A Y 2019- 2 0 2 1 O U T L O O K O U R G R O WW T H H Y S I T N R V A E T S E T G IY N F I S ? Our Growth Strategy Consistent and effective BASE BUSINESS UNLOCK VALUE INORGANIC Effectively cross sell, deliver Strategic investment to expand Continue to strategi
Slide 11: Base Business Execution: Market focus
F I N A N C I A L RF E I V S I E T W O D A Y 2019- 2 0 2 1 O U T L O O K O U R G R O WW T H H Y S I T N R V A E T S E T G IY N F I S ? Base Business Execution Market focus brings FIS’ scale to three growing markets 2018 global financial technology spend ~$300B1 Forward three-year (2017-2020) CAGR 5%
Slide 12: Mission-critical solutions delivered at scale
F I N A N C I A L RF E I V S I E T W O D A Y 2019- 2 0 2 1 O U T L O O K O U R G R O WW T H H Y S I T N R V A E T S E T G IY N F I S ? Base Business Execution Mission-critical solutions delivered at scale DIGITAL ACCOUNT MOVEMENT OF OPERATIONS ENABLEMENT PROCESSING MONEY / ASSETS EXCELLENCE 35B+ 80M
Slide 13: Driving revenue, operational and margin efficiencies
F I N A N C I A L RF E I V S I E T W O D A Y 2019- 2 0 2 1 O U T L O O K O U R G R O WW T H H Y S I T N R V A E T S E T G IY N F I S ? Base Business Execution Driving revenue, operational and margin efficiencies People Technology Tools & Optimized Returns Infrastructure Processes • Best-in-class tal
Slide 14: Unlocking Value with Innovation
F I N A N C I A L RF E I V S I E T W O D A Y 2019- 2 0 2 1 O U T L O O K O U R G R O WW T H H Y S I T N R V A E T S E T G IY N F I S ? Unlocking Value with Innovation Modernization and innovation strategy CapEx % of Adjusted Revenue Research and Development Investing capital to fuel future organic 7
Slide 15: Investment strategy guided by modern design principles
F I N A N C I A L RF E I V S I E T W O D A Y 2019- 2 0 2 1 O U T L O O K O U R G R O WW T H H Y S I T N R V A E T S E T G IY N F I S ? Unlocking Value with Innovation Our investment strategy is guided by modern design principles Component-based Cloud Ready Unified Client Open API Experience LEVERAGE
Slide 16: Investing in areas of high demand and return
F I N A N C I A L RF E I V S I E T W O D A Y 2019- 2 0 2 1 O U T L O O K O U R G R O WW T H H Y S I T N R V A E T S E T G IY N F I S ? Unlocking Value with Innovation FIS is investing in areas of high demand and return Core Code Digital Unified Next Gen Cloud Banking Connect One Payments Trading Inf
Slide 17: Market Transformation
F I N A N C I A L RF E I V S I E T W O D A Y 2019- 2 0 2 1 O U T L O O K O U R G R O WW T H H Y S I T N R V A E T S E T G IY N F I S ? Market Transformation Change has been a consistent theme 1968 1990 2003 2006 2018 FUTURE 1970s 1980s • Mainframe • Software • Mainframe as • Internet & eCommerce • 2
Slide 18: Growing via Strategic Acquisition
F I N A N C I A L RF E I V S I E T W O D A Y 2019- 2 0 2 1 O U T L O O K O U R G R O WW T H H Y S I T N R V A E T S E T G IY N F I S ? Growing via Strategic Acquisition Proven track record of delivering value Align with Market Focus Deliver Shareholder Value • Financial services focused • Logical ad
Slide 19: Growing via Strategic Divestiture
F I N A N C I A L RF E I V S I E T W O D A Y 2019- 2 0 2 1 O U T L O O K O U R G R O WW T H H Y S I T N R V A E T S E T G IY N F I S ? Growing via Strategic Divestiture Proven track record of delivering value Q1 2017 Q3 2017 Q1 2018 Kingstar Targeted divestitures creating greater focus M A R K E T S
Slide 20: In Closing: Strategic Execution Yielding Results
F I S T O D A Y O U R G R O W T H S T R A T E G Y In Closing: Strategic Execution Yielding Results 1 2 3 4 Focused Investing and Predictable Confidence in Plan Modernizing Performance Outlook CONSISTENT, PREDICTABLE SHAREHOLDER VALUE 20
Slide 21: Segment Leadership
Segment Leadership Co-chief operating officers with 55+ years of combined experience BRUCE MARIANNE LOWTHERS BROWN Chief Operating Officer, Chief Operating Officer, Integrated Financial Solutions Global Financial Solutions Market Focus • Continuous Modernization • Optimizing Results 21
Slide 22: Agenda: Markets in Focus
Agenda MARKETS IN FOCUS Bruce Lowthers Chief Operating Officer, Integrated Financial Solutions 22
Slide 23: Integrated Financial Solutions Positioned for continued growth
I F S M A R K E T F O C U S M O D E R N I Z A T I O N O P T I M I Z E D R E T U R N S Integrated Financial Solutions Positioned for continued growth ~$4.3B ~90% ~44% 2017 REVENUES RECURRING EBITDA MARGIN REVENUES CONTRIBUTED Predictable Revenue Base Improved Client Demand 286M+ 35B+ $8.4T+ Different
Slide 24: Current Dynamics and Demand
I F S M A R K E T F O C U S M O D E R N I Z A T I O N O P T I M I Z E D R E T U R N S Current Dynamics and Demand CLIENT DYNAMICS CLIENT PRIORITIES CLIENT NEEDS New Competition Consumer Expectations Core Modernization Changing Buyer Needs Digital Transformation Finding New Efficiencies Unified Payme
Slide 25: Our Clients' Needs Will Be Dramatically Different
I F S M A R K E T F O C U S M O D E R N I Z A T I O N O P T I M I Z E D R E T U R N S In the Next Five Years Our Clients’ Needs Will Be Dramatically Different INDUSTRY DIRECTION FIS TRANSFORMING CUSTOMER BENEFITS • Moving to social banking • Modernized platforms and solutions • Moving to cloud servi
Slide 26: Investing in Areas of High Demand and Return
I F S M A R K E T F O C U S M O D E R N I Z A T I O N O P T I M I Z E D R E T U R N S FIS Is Investing in Areas of High Demand and Return CONTINUOUS INNOVATION ONE TO MANY INTEGRATED MULTI-CHANNEL DELIVERY Banking Payments Digital APIs Componentization Unified view Human-centered design Speed to mar
Slide 27: Innovating Financial Solutions to Improve People's Lives
I F S M A R K E T F O C U S M O D E R N I Z A T I O N O P T I M I Z E D R E T U R N S Innovating Financial Solutions to Improve People’s Lives Mass Enablement Leveraging Existing Products of Functionality into New Solutions SPEED TO MARKET INTUITIVE DIGITAL EXPERIENCES BANKING & PAYMENTS MEET LIFE 2
Slide 28: Positioned to Accelerate Growth and Expand Margins
I F S M A R K E T F O C U S M O D E R N I Z A T I O N O P T I M I Z E D R E T U R N S Positioned to Accelerate Growth and Expand Margins Sales Transformation Service Delivery Investment Discipline Mass enablement Utilization of technology Align investment to strategic growth areas Align assets to wh
Slide 29: Integrated Financial Solutions Positioned for Growth
I F S M A R K E T F O C U S M O D E R N I Z A T I O N O P T I M I Z E D R E T U R N S Integrated Financial Solutions Positioned for Growth Long-term Growth Solution Modernization Pipeline of innovative new products Retain and Cross Sell Retain and deepen client relationships Mass enablement and alig
Slide 30: Positioned for Growth
I F S M A R K E T F O C U S M O D E R N I Z A T I O N O P T I M I Z E D R E T U R N S Positioned for Growth Predictable Improved Differentiated Operational Revenue Base Market Demand Solutions Leverage ~90% recurring revenue Prioritized investment spend Modernization of all legacy ~44% EBITDA margin
Slide 31: Agenda: Markets in Focus
Agenda MARKETS IN FOCUS Marianne Brown Chief Operating Officer, Global Financial Solutions 31
Slide 32: Global Financial Solutions
G F S M A R K E T F O C U S M O D E R N I Z A T I O N O P T I M I Z E D R E T U R N S Global Financial Solutions Segment characteristics • Focus on global marketplace • Differentiated presence in Tier 1 and Tier 2 institutions • Leveraged sales force • Higher growth profile with margin expansion MAR
Slide 33: Global Financial Solutions Positioned for continued growth
G F S M A R K E T F O C U S M O D E R N I Z A T I O N O P T I M I Z E D R E T U R N S Global Financial Solutions Positioned for continued growth MISSION CRITICAL applications ~$4.1B 2017 REVENUES GLOBAL SIGNIFICANTLY IMPROVED revenue quality MARKETS Driving Higher Growth Scale driven by STRATEGIC IN
Slide 34: Capabilities Across Global Verticals
G F S M A R K E T F O C U S M O D E R N I Z A T I O N O P T I M I Z E D R E T U R N S Capabilities Across Global Verticals 31T+ Fund Accounting Assets Institutional & Wholesale 150+ Global Trading Venues Investment / Investor Accounting Risk and Compliance Multi-Asset Trading / Data Securities Proce
Slide 35: Capabilities Across Global Verticals
G F S M A R K E T F O C U S M O D E R N I Z A T I O N O P T I M I Z E D R E T U R N S Capabilities across Global Verticals 31T+ Fund Accounting Assets Institutional Banking & Wholesale 150+ Global Trading Venues Investment/Investor Accounting Core Bank Processing Risk and Compliance Digital Enableme
Slide 36: Capabilities Across Global Verticals
G F S M A R K E T F O C U S M O D E R N I Z A T I O N O P T I M I Z E D R E T U R N S Capabilities across Global Verticals 31T+ Fund Accounting Assets Institutional Banking Payments & Wholesale 150+ Global Trading Venues Investment/Investor Accounting Core Bank Processing Real-Time/Immediate Risk an
Slide 37: Current Dynamics and Demand
G F S M A R K E T F O C U S M O D E R N I Z A T I O N O P T I M I Z E D R E T U R N S Current Dynamics and Demand CLIENT DYNAMICS Ongoing regulation Buy vs. build evolution Vendor consolidation Information security and risk management 37
Slide 38: Current Dynamics and Demand
G F S M A R K E T F O C U S M O D E R N I Z A T I O N O P T I M I Z E D R E T U R N S Current Dynamics and Demand CLIENT DYNAMICS SPEND DRIVERS Ongoing regulation Reducing technology debt Buy vs. build evolution Corporate profits and tax reform Vendor consolidation CapEx demands vs. ability to inves
Slide 39: Current Dynamics and Demand
G F S M A R K E T F O C U S M O D E R N I Z A T I O N O P T I M I Z E D R E T U R N S Current Dynamics and Demand CLIENT DYNAMICS SPEND DRIVERS CLIENT CHALLENGES Ongoing regulation Reducing technology debt Navigating risk and regulatory demands Buy vs. build evolution Corporate profits Driving effic
Slide 40: Demand Fueling Innovation
G F S M A R K E T F O C U S M O D E R N I Z A T I O N O P T I M I Z E D R E T U R N S Demand Fueling Innovation Multi-asset Class Front-to-back solutions offering cross-asset capabilities, ✔ 1 enabling growth and rationalized technology SOLUTION SOLUTION EXPANSION 40
Slide 41: Demand Fueling Innovation
G F S M A R K E T F O C U S M O D E R N I Z A T I O N O P T I M I Z E D R E T U R N S Demand Fueling Innovation Multi-asset Class Front-to-back solutions offering cross-asset capabilities, ✔ 1 enabling growth and rationalized technology Lifecycle Solutions Holistic, “out-of-the-box” offerings levera
Slide 42: Demand Fueling Innovation
G F S M A R K E T F O C U S M O D E R N I Z A T I O N O P T I M I Z E D R E T U R N S Demand Fueling Innovation Multi-asset Class Front-to-back solutions offering cross-asset capabilities, ✔ 1 enabling growth and rationalized technology Lifecycle Solutions Holistic, “out-of-the-box” offerings levera
Slide 43: Demand Fueling Innovation
G F S M A R K E T F O C U S M O D E R N I Z A T I O N O P T I M I Z E D R E T U R N S Demand Fueling Innovation Multi-asset Class Front-to-back solutions offering cross-asset capabilities, ✔ 1 enabling growth and rationalized technology Lifecycle Solutions Holistic, “out-of-the-box” offerings levera
Slide 44: Demand Fueling Innovation
G F S M A R K E T F O C U S M O D E R N I Z A T I O N O P T I M I Z E D R E T U R N S Demand Fueling Innovation Multi-asset Class Front-to-back solutions offering cross-asset capabilities, ✔ 1 enabling growth and rationalized technology Lifecycle Solutions Holistic, “out-of-the-box” offerings levera
Slide 45: Client Success Stories
G F S M A R K E T F O C U S M O D E R N I Z A T I O N O P T I M I Z E D R E T U R N S Client Success Stories HOLISTIC ENTERPRISE SOLUTIONS 45
Slide 46: Client Success Stories
G F S M A R K E T F O C U S M O D E R N I Z A T I O N O P T I M I Z E D R E T U R N S Client Success Stories HOLISTIC ENTERPRISE SOLUTIONS “FUTURE PROOF” TO DRIVE GROWTH 46
Slide 47: Client Success Stories
G F S M A R K E T F O C U S M O D E R N I Z A T I O N O P T I M I Z E D R E T U R N S Client Success Stories HOLISTIC ENTERPRISE SOLUTIONS “FUTURE PROOF” TO DRIVE GROWTH RE-IMAGINED CLIENT EXPERIENCES EMPOWERING THE FINANCIAL WORLD 47
Slide 48: Positioned for Growth with Margin Expansion
G F S M A R K E T F O C U S M O D E R N I Z A T I O N O P T I M I Z E D R E T U R N S Positioned for Growth with Margin Expansion Long-term Growth Go-to-market Enhancements Enhance service offerings and simplify deployment Sales Productivity Optimize top talent with great sales tools/processes Conti
Slide 49: Positioned for Growth
G F S M A R K E T F O C U S M O D E R N I Z A T I O N O P T I M I Z E D R E T U R N S Positioned for Growth Predictable Alignment with Differentiated Operational Revenue Base Market Demand Solutions Leverage Large addressable market Focused portfolio Modernization journey Operational excellence Well
Slide 50: Agenda: Shareholder Value
Agenda SHAREHOLDER Financial Review VALUE Woody Woodall Chief Financial Officer 2019 - 2021 Outlook Why Invest in FIS? 50
Slide 51: Agenda: Shareholder Value
Agenda SHAREHOLDER Financial Review VALUE Woody Woodall Chief Financial Officer 2019 - 2021 Outlook Why Invest in FIS? 51
Slide 52: Strong, Value-creating Business Model
F I N A N C I A L R E V I E W 2019- 2 0 2 1 O U T L O O K W H Y I N V E S T I N F I S ? Strong, Value-creating Business Model High-quality Expanding Revenue Margins Strong Cash Sustainable Generation EPS Growth 52
Slide 53: 2017 Highlights
F I N A N C I A L R E V I E W 2019- 2 0 2 1 O U T L O O K W H Y I N V E S T I N F I S ? 2017 Highlights $8.7B +280 bps ~16% ~110% Adjusted EBITDA Margin Adjusted EPS Cash Flow Revenue Expansion Growth Conversion CONSISTENT FINANCIAL PERFORMANCE DRIVES PREDICTABLE AND LONG-TERM SHAREHOLDER RETURNS *M
Slide 54: Attractive Fundamentals
F I N A N C I A L R E V I E W 2019- 2 0 2 1 O U T L O O K W H Y I N V E S T I N F I S ? Attractive Fundamentals 1 2 3 4 5 Strengthened Increased IP- Continued margin Exceeded 2018 Achieved portfolio with driven revenue expansion and adjusted EPS leverage goals, focused and effective working capital
Slide 55: Operating Segments – IFS
F I N A N C I A L R E V I E W 2019- 2 0 2 1 O U T L O O K W H Y I N V E S T I N F I S ? Operating Segments – IFS ~$4.3B •Predictable and low risk top- 2017 REVENUES ONE-TO- line growth trajectory MANY Driving Higher •Highly scalable operating Incremental Margins model continues to drive margin expan
Slide 56: Operating Segments – GFS
F I N A N C I A L R E V I E W 2019- 2 0 2 1 O U T L O O K W H Y I N V E S T I N F I S ? Operating Segments – GFS ~$4.1B •Global scale provides 2017 REVENUES GLOBAL differentiated market MARKETS opportunity Driving Higher Growth •Exceptional margin expansion and operational ~70% ~33% rationalization
Slide 57: Exceptional EBITDA Margin Expansion
F I N A N C I A L R E V I E W 2019- 2 0 2 1 O U T L O O K W H Y I N V E S T I N F I S ? Exceptional EBITDA Margin Expansion KEY DRIVERS 36% - 37% 1 Higher margin IP-centric 660 bps revenue composition 2015 - 2018 34.4% Benefits of data center 2 consolidation program 31.6% 29.9% 3 Acquisition integra
Slide 58: Premium Free Cash Flow Conversion
F I N A N C I A L R E V I E W 2019- 2 0 2 1 O U T L O O K W H Y I N V E S T I N F I S ? Premium Free Cash Flow Conversion NEARLY ~22% KEY DRIVERS DOUBLING EBITDA margin Cash Flow as a Percentage 1 expansion of Revenue 18% 17% Focused portfolio with 2 higher cash generating 14% assets Continued focus
Slide 59: Strong Balance Sheet
F I N A N C I A L R E V I E W 2019- 2 0 2 1 O U T L O O K W H Y I N V E S T I N F I S ? Strong Balance Sheet 3.3% $11.4 2.8X Weighted Average $10.5 Interest Rate 2017 Leverage $8.8 Ratio 6 Years Weighted Average Maturity $4.8 $5.1 $4.4 $4.5 ~95% Percentage of Fixed Rate Debt 2011 2012 2013 2014 2015
Slide 60: 2016 Investor Day Report Card
F I N A N C I A L R E V I E W 2019- 2 0 2 1 O U T L O O K W H Y I N V E S T I N F I S ? 2016 Investor Day Report Card ✔ ✔ ✔ 2% - 3% 13% - 18% ✔ ~2% ~6% ✔ 3% - 7% Organic Revenue Margin Expansion Debt Paydown Effective Tax Rate Adjusted EPS Growth (BAU + Synergies) Reduction Growth Refer to www.inves
Slide 61: Previous Investor Day EPS outlook vs. 2018 guidance
F I N A N C I A L R E V I E W 2019- 2 0 2 1 O U T L O O K W H Y I N V E S T I N F I S ? Previous Investor Day 2018 EPS outlook vs. 2018 guidance LOW ESTIMATE HIGH ESTIMATE 2016 Investor Day EPS Outlook $4.70 $5.10 2018 EPS Guidance $5.14 $5.34 Outperformed Our Original Outlook Refer to www.investor.
Slide 62: Agenda: 2019-2021 Outlook
Agenda SHAREHOLDER Financial Review VALUE Woody Woodall Chief Financial Officer 2019 - 2021 Outlook Why Invest in FIS? 62
Slide 63: Improving Organic Revenue Growth
F I N A N C I A L R E V I E W 2019- 2 0 2 1 O U T L O O K W H Y I N V E S T I N F I S ? Improving Organic Revenue Growth Predictable Improving Market Differentiated Revenue Base Spend Solutions Recurring revenue tied to Improving sentiment Innovation and integration long-term contracts with in marke
Slide 64: Strong Margin Expansion
F I N A N C I A L R E V I E W 2019- 2 0 2 1 O U T L O O K W H Y I N V E S T I N F I S ? Strong Margin Expansion Operational Data Center Enterprise Leverage Consolidation Excellence High incremental margins Modernizing networks Efficiencies through process automation Global delivery platform Reducing
Slide 65: Data Center Consolidation Update
F I N A N C I A L R E V I E W 2019- 2 0 2 1 O U T L O O K W H Y I N V E S T I N F I S ? Data Center Consolidation Update 53 ~$250M Annual <15 Savings Strategic Data Centers ~$250 million Target $ of Annual Run-Rate Cost Reduction >$700 million $100 Total Projected Savings over <15 the Life of the Pr
Slide 66: Capital Allocation Principles
F I N A N C I A L R E V I E W 2019- 2 0 2 1 O U T L O O K W H Y I N V E S T I N F I S ? Capital Allocation Principles Investing for Return Capital Value Creating Organic Growth to Shareholders M&A Consistent and Proven Capital Allocation Framework 66
Slide 67: Proven M&A Strategy
F I N A N C I A L R E V I E W 2019- 2 0 2 1 O U T L O O K W H Y I N V E S T I N F I S ? Proven M&A Strategy 1 2 Strategic Rationale Targeted Financial Measures Accelerate cross-sell and up-sell Attractive risk-adjusted returns opportunities into existing client base Identifiable and actionable Expan
Slide 68: 2019-2021 Consolidated Outlook
F I N A N C I A L R E V I E W 2019- 2 0 2 1 O U T L O O K W H Y I N V E S T I N F I S ? 2019 - 2021 Consolidated Outlook IMPROVING ORGANIC REVENUE GROWTH STRONG MARGIN ~4% +75-125bps 10%-13% EXPANSION Organic Revenue Adj. EBITDA Margin Adj. Earnings Growth Expansion Per Share Growth DOUBLE-DIGIT EPS
Slide 69: Agenda: Why Invest in FIS?
Agenda SHAREHOLDER Financial Review VALUE Woody Woodall Chief Financial Officer 2019 - 2021 Outlook Why Invest in FIS? 69
Slide 70: Very Attractive Returns
F I N A N C I A L R E V I E W 2019- 2 0 2 1 O U T L O O K W H Y I N V E S T I N F I S ? Very Attractive Returns Annualized Total Shareholder Returns of FIS* 1 Year 5 Year 10 Year 23% 21% 18% S&P 500 2012 2013 2014 2015 2016 2017 FIS S&P 500 *Annualized 1, 5, and 10 year total shareholder returns as
Slide 71: The Formula Works
F I N A N C I A L R E V I E W 2019- 2 0 2 1 O U T L O O K W H Y I N V E S T I N F I S ? The Formula Works Market High-quality Double-digit Strong Compelling Leadership Recurring EPS Growth Cash Flow Investment Revenue Generation Thesis 71
Slide 72: The Formula Works: Q&A Session
F I N A N C I A L R E V I E W 2019- 2 0 2 1 O U T L O O K W H Y I N V E S T I N F I S ? The Formula Works Market High-quality Double-digit Strong Compelling Leadership Recurring EPS Growth Cash Flow Investment Revenue Generation Thesis Q&A Session 72
Slide 73: Appendix
APPENDIX 73
Slide 74: 2019–2021 Segment Outlook: Organic Growth
A P P E N D I X 2019 – 2021 Segment Outlook: Organic Growth METRICS 2019 – 2021 Outlook (Annual) Integrated Financial Solutions (IFS) 3.0% - 4.0% Organic Revenue Growth Global Financial Solutions (GFS) 4.0% - 5.0% Organic Revenue Growth 74
Slide 75: Forward-Looking Statements
A P P E N D I X 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 gu
Slide 76: Forward-Looking Statements
A P P E N D I X Forward-Looking Statements •changes in the growth rates of the markets for our solutions; •failures to adapt our solutions to changes in technology or in the marketplace; •internal or external security breaches of our systems, including those relating to unauthorized access, theft, c
Slide 77: Non-GAAP Financial Information and Reconciliation
A P P E N D I X 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 in the United States. GAAP includes the standards, conventions, and rules accountants follow in
Slide 78: Definitions of Non-GAAP Financial Measures
A P P E N D I X Definitions of Non-GAAP Financial Measures Adjusted revenue consists of revenue, increased to reverse the purchase accounting deferred revenue adjustment made upon the acquisition of SunGard. The deferred revenue adjustment represents revenue that would have been recognized in the no
Slide 79: Definitions of Non-GAAP Financial Measures
A P P E N D I X Definitions of Non-GAAP Financial Measures Adjusted EBITDA margin reflects adjusted EBITDA divided by adjusted revenue. Adjusted net earnings excludes the impact of certain costs and other transactions which management deems non-operational in nature, the removal of which improves co
Slide 80: Reconciliation of GAAP to Non-GAAP Financial Measures
A P P E N D I X Reconciliation of GAAP to Non-GAAP Financial Measures ($ Millions) Years ended December 31, 2017 2016 2015 Processing and services revenue $ 9,123 $ 9,241 $ 6,596 Non-GAAP adjustments: Acquisition deferred revenue adjustment 7 192 48 Adjusted revenue $ 9,130 $ 9,433 $ 6,644 Topic 606
Slide 81: Reconciliation of GAAP to Non-GAAP Financial Measures
A P P E N D I X Reconciliation of GAAP to Non-GAAP Financial Measures ($ Millions) Years ended December 31, 2017 2016 2015 Net earnings from continuing operations attributable to FIS $ 1,261 $ 524 $ 631 Provision (benefit) for income taxes (321) 291 375 Equity method investment earnings 3 - - Intere
Slide 82: Reconciliation of GAAP to Non-GAAP Financial Measures
A P P E N D I X Reconciliation of GAAP to Non-GAAP Financial Measures ($ Millions, except per share data) Years ended December 31, 2017 2016 2015 Earnings from continuing operations before income taxes and equity method investment earnings $ 976 $ 837 $ 1,025 Provision (benefit) for income taxes (32
Slide 83: Reconciliation of GAAP to Non-GAAP Financial Measures
A P P E N D I X Reconciliation of GAAP to Non-GAAP Financial Measures ($ Millions) Years ended December 31, 2017 2016 2015 Net cash provided by operating activities $ 1,741 $ 1,925 $ 1,131 Non-GAAP adjustments: Acquisition, integration and severance payments 101 168 80 Tax payments on divestitures 3
Fidelity National Information Services — Investor Day (May 2018) on 6ix