Slide 1: Second Quarter 2023 Financial Results
Second Quarter 2023 Financial Results July 26, 2023
Slide 2: Forward-Looking Statements and Non-GAAP Financial Measures
Forward-Looking Statements and Non-GAAP Financial Measures Forward-Looking Statements This presentation contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including statements regarding anticipated organic revenue growth, adjusted earnings
Slide 3: Second Quarter Highlights
Second Quarter Highlights • Adjusted Revenue of $4.5 billion, up 6% • Delivered ninth consecutive quarter of double-digit organic revenue growth • Organic Revenue Growth of 10% • Expanded acquiring relationship with Caixa to add over • Adjusted Earnings Per Share of $1.81, up 16% 13,000 agencies tha
Slide 4: Financial Metric Dashboard
Financial Metric Dashboard Organic Growth: 2Q23 +10% | YTD +11% Adjusted Revenue Adjusted Operating Margin % +6% | +8% +300bps | +240bps 39.2% $4,506 36.5% $4,273 $4,360 $4,280 35.2% $4,234 33.5% 33.6% 2Q22 3Q22 4Q22 1Q23 2Q23 2Q22 3Q22 4Q22 1Q23 2Q23 Adjusted EPS Free Cash Flow -8% | +16% +16% | +1
Slide 5: Merchant Acceptance Segment
Merchant Acceptance Segment Organic Growth: 2Q23 +14% | YTD +16% Adjusted Revenue Highlights +9% | +10% 23% $2,065 Clover revenue growth $1,901 $1,878 $1,860 $1,847 $267 billion Clover annualized GPV, up 15% 2Q22 3Q22 4Q22 1Q23 2Q23 1% and 1% Adjusted Operating Margin Margin: merchant volume and tra
Slide 6: Payments and Network Segment
Payments and Network Segment Organic Growth: 2Q23 +9% | YTD +11% Adjusted Revenue Highlights +8% | +10% Enabled over 80 issuers for CNP on Star and Accel, along with several large $1,623 $1,671 $1,635 $1,650 $1,524 merchants 44% and 29% growth in Zelle® transactions and number of clients, respective
Slide 7: Financial Technology Segment
Financial Technology Segment Organic Growth: 2Q23 -1% | YTD +1% Adjusted Revenue Highlights -2% | flat 10 core wins $803 $823 $792 $784 $766 Modern core momentum continues 4 DNA and 2 Finxact wins 2Q22 3Q22 4Q22 1Q23 2Q23 Forum hosted nearly 1,000 financial Adjusted Operating Margin Margin: institut
Slide 8: 2023 Performance Outlook
2023 Performance Outlook Key Financial Metrics Previous Updated Organic Revenue Growth 8% – 9% 9% – 11% Adjusted EPS $7.30 – $7.40 $7.40 – $7.50 (12% – 14% growth) (14% – 16% growth) Other Financial Metrics Adjusted Operating Margin Expansion >125bps ≥150bps Free Cash Flow ~$3.8B ~$3.8B See Appendix
Slide 9: Appendix
Appendix Recognized by Fortune® Magazine 9 © 2023 Fiserv, Inc. or its affiliates. | FISERV CONFIDENTIAL World’s Most Admired CompaniesTM 2023
Slide 10: Non-GAAP Financial Measures
Non-GAAP Financial Measures Use of Non-GAAP Financial Measures This presentation includes the following unaudited non-GAAP financial measures: “adjusted revenue,” “adjusted revenue growth,” “organic revenue,” “organic revenue growth,” “adjusted operating income,” “adjusted operating margin,” “adjust
Slide 11: 2Q23 Revenue Details
2Q23 Revenue Details Merchant Payments Financial Corporate Total Acceptance and Network Technology and Other Company GAAP revenue $2,065 $1,645 $784 $262 $4,756 Output solutions postage reimbursements - - - (255) (255) Deferred revenue adjustments - 5 - - 5 Adjusted revenue $2,065 $1,650 $784 $7 $4,
Slide 12: Adjusted Revenue and Adjusted Operating Income
Adjusted Revenue and Adjusted Operating Income Total Company 2Q23 1Q23 4Q22 3Q22 2Q22 YTD23 YTD22 Revenue $ 4,756 $ 4,547 $ 4,631 $ 4,518 $ 4,450 $ 9,303 $ 8,588 Adjustments: Output Solutions postage reimbursements (255) (273) (277) (251) (222) (528) (461) Deferred revenue purchase accounting adjust
Slide 13: Adjusted Revenue and Adjusted Operating Income by Segment
Adjusted Revenue and Adjusted Operating Income by Segment Merchant Acceptance Segment 2Q23 1Q23 4Q22 3Q22 2Q22 YTD23 YTD22 Revenue $ 2,065 $ 1,847 $ 1,860 $ 1,878 $ 1,901 $ 3,912 $ 3,554 Operating income $ 718 $ 562 $ 648 $ 610 $ 593 $ 1,280 $ 1,063 Operating margin 34.7 % 30.5 % 34.8 % 32.4 % 31.2
Slide 14: Adjusted Revenue and Adjusted Operating Income by Segment
Adjusted Revenue and Adjusted Operating Income by Segment Payments and Network Segment 2Q23 1Q23 4Q22 3Q22 2Q22 YTD23 YTD22 Revenue $ 1,645 $ 1,629 $ 1,665 $ 1,617 $ 1,518 $ 3,274 $ 2,980 Adjustments: Deferred revenue purchase accounting adjustments 5 6 6 6 6 11 13 Adjusted revenue $ 1,650 $ 1,635 $
Slide 15: Adjusted Revenue and Adjusted Operating Income by Segment
Adjusted Revenue and Adjusted Operating Income by Segment Financial Technology Segment 2Q23 1Q23 4Q22 3Q22 2Q22 YTD23 YTD22 Revenue $ 784 $ 792 $ 823 $ 766 $ 803 $ 1,576 $ 1,581 Operating income $ 285 $ 280 $ 340 $ 261 $ 281 $ 565 $ 556 Operating margin 36.3 % 35.4 % 41.3 % 34.1 % 35.0 % 35.8 % 35.2
Slide 16: Adjusted and Organic Revenue by Segment
Adjusted and Organic Revenue by Segment Three Months Ended June 30, Six Months Ended June 30, 2023 2022 Growth 2023 2022 Growth Total Company Revenue $ 4,756 $ 4,450 7% $ 9,303 $ 8,588 8% Output Solutions postage reimbursements (255) (222) (528) (461) Deferred revenue purchase accounting adjustments
Slide 17: Adjusted and Organic Revenue by Segment (cont.)
Adjusted and Organic Revenue by Segment (cont.) Three Months Ended June 30, Six Months Ended June 30, 2023 2022 Growth 2023 2022 Growth Payments and Network Revenue $ 1,645 $ 1,518 8% $ 3,274 $ 2,980 10% Deferred revenue purchase accounting adjustments 5 6 11 13 Adjusted revenue $ 1,650 $ 1,524 8% $
Slide 18: Adjusted Net Income and Adjusted EPS
Adjusted Net Income and Adjusted EPS 2Q23 1Q23 4Q22 3Q22 2Q22 YTD23 YTD22 GAAP net income attributable to Fiserv $ 683 $ 563 $ 782 $ 481 $ 598 $ 1,246 $ 1,267 Adjustments: Merger and integration costs 1 42 48 58 54 39 90 61 Severance costs 13 24 75 35 47 37 99 Amortization of acquisition-related int
Slide 19: Adjusted Net Income and Adjusted EPS (cont.)
Adjusted Net Income and Adjusted EPS (cont.) 1 Represents acquisition and related integration costs incurred in connection with various acquisitions. Merger and integration costs in the second quarter and first six months of 2023 include $19 million and $39 million, respectively, of share-based comp
Slide 20: Free Cash Flow
Free Cash Flow 2Q23 1Q23 4Q22 3Q22 2Q22 YTD23 YTD22 Net cash provided by operating activities $ 878 $ 1,130 $ 1,633 $ 1,180 $ 990 $ 2,008 $ 1,805 Capital expenditures (340) (339) (331) (430) (387) (679) (718) Adjustments: Distributions paid to noncontrolling interests and (6) (8) (12) (8) (9) (14) (
Slide 21: Additional Information – Amortization Expense
Additional Information – Amortization Expense Total Amortization 2Q23 2Q22 YTD23 YTD22 Acquisition-related intangible assets $ 435 $ 480 $ 868 $ 966 Capitalized software and other intangibles 119 87 227 167 Purchased software 60 55 114 113 Financing costs and debt discounts 10 11 20 22 Sales commiss
Slide 22: 2023 Performance Outlook – Organic Revenue Growth
2023 Performance Outlook – Organic Revenue Growth Growth 2023 Revenue 7% - 9% Output Solutions postage reimbursements (1.0%) 2023 Adjusted revenue 6% - 8% Currency impact 1 3.0% Acquisition adjustments (0.5%) Divestiture adjustments 2 0.5% 2023 Organic revenue 3 9% - 11% See page 10 for information
Slide 23: 2022 Adjusted Net Income and Adjusted EPS Reconciliation
2022 Adjusted Net Income and Adjusted EPS Reconciliation 2022 GAAP net income attributable to Fiserv $ 2,530 Adjustments: Merger and integration costs 1 173 Severance costs 209 Amortization of acquisition-related intangible assets 2 1,814 Non wholly-owned entity activities 3 9 Net gain on sale of bu
Slide 24: 2022 Adjusted Net Income and Adjusted EPS Reconciliation (cont.)
2022 Adjusted Net Income and Adjusted EPS Reconciliation (cont.) 1 Represents acquisition and related integration costs incurred in connection with various acquisitions. Merger and integration costs primarily includes share-based compensation and third-party professional service fees attributable to
Slide 25: 2022 Adjusted Revenue and Adjusted Operating Income Reconciliation
2022 Adjusted Revenue and Adjusted Operating Income Reconciliation 2022 Revenue $ 17,737 Adjustments: Output Solutions postage reimbursements (989) Deferred revenue purchase accounting adjustments 25 2022 Adjusted revenue $ 16,773 2022 Operating income $ 3,740 Adjustments: Merger and integration cos