Aci Worldwide, Inc. · NASDAQ:ACIW
Aci Worldwide — Shareholder Meeting (June 2009)
34 slides from Aci Worldwide's shareholder meeting presentation, Jun 10, 2009
Slide 1: Annual Meeting of Stockholders June 10, 2009
Annual Meeting of Stockholders June 10, 2009 New York, NY
Slide 2: 2008 Calendar Year Review
2 Phil Heasley, President and CEO 2008 Calendar Year Review
Slide 3: 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 4: 2008 General Market Conditions
2008 General Market Conditions Financial crisis spread to most markets Cost pressures on our customers 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 Ou
Slide 5: Base Classic Sunset Announced in 2008
Base 24 Classic Sunset Announced in 2008 SUNSET was announced in March 2008 Not End-of-Life announcement Sunset will be effective in November 2011 Sunset means: Standard maintenance rates will increase significantly No new releases on the Classic product Supported platforms for BASE24-eps: IBM Syste
Slide 6: IBM Alliance - 2008 Review
IBM Alliance- 2008 Review Key Deals Strategic wins for Base24-eps (Americas) Proactive Risk Manager (Asia) on IBM System z Enterprise Banker On Demand (Americas) Sales Summary Strong finish in Q4, led by wholesale payments FY 2008 performance doubled IBM platform business as compared to prior year A
Slide 7: Customer Revenue by Industry Type
Customer Revenue by Industry Type We maintained a similar product line segmentation year-over-year Strong revenue from banks and processors in 2008 Growing activity in the retailer segment in the United States All product attrition for the year at extremely low rates of 4.2% All product attrition fo
Slide 8: Historic Sales By Quarter 2007-2008
Historic Sales By Quarter 2007-2008 Historic Sales By Quarter 2007-2008
Slide 9: Americas Year in Review
Americas Year in Review Annual revenue of $207.4 million, an increase of 5% over prior year Sales in the year were very strong New business sales up 14% year-over-year Term extension sales flat although dollar amount rose significantly U.S. sales up 14% even while headcount was reduced by 17% 20 new
Slide 10: 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 legacy technologies P
Slide 11: EMEA Year in Review
EMEA Year in Review Annual Revenue of $169.0 million, an improvement of 21% due to Faster Payments services acceptance 9 New customer names and 41 new applications during the year 25 deals over $1 million in contract value in 2008 Major 2008 renewals at: Al Rajhi Erste Bank Fortis HSBC OTP
Slide 12: 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 driver, expan
Slide 13: Asia-Pacific Year in Review
Asia-Pacific Year in Review Annual revenue of $41.3 million, an increase of 13% over prior year Largely due to strong professional services deals being implemented across Wholesale and Retail business 5 new customers and 9 new applications licensed during the year Grew sales by 37% year on year Whol
Slide 14: 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 urgency to implemen
Slide 15: 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 related to the 2008 restructuring to close in 1H 2009 Approximately $11.5 million to be re-invested in products
Slide 16: 2008 Business Organization
2008 Business Organization Hired Ron Totaro as COO and Scott Behrens elevated to CFO Filling out the second level of management expertise Chief Product Officer VP Global Risk Solutions APAC Strategy & Planning Leader APAC Head of Services EMEA VP of Services EMEA Strategy & Planning Leader Global He
Slide 17: Corporate Management Office (CMO)
The CMO was instituted during late 2008 and serves as the "nerve center" for program excellence and coordination of projects across the enterprise CMO Measurement Governance Organization Tools Reporting Methodology Corporate Management Office (CMO) CMO Purpose Define processes / methodologies Provid
Slide 18: Deal Review Process (DRP)
DRP Purpose Created to monitor and manage the sales and services teams All deals will be run through a formal requirements and delivery estimation process Deal Review Committee (DRC) will discuss and approve specific deals meeting pre-set criteria before formal pricing terms are offered to the custo
Slide 19: ACIW Quarterly Revenue by Type
ACIW Quarterly Revenue by Type 12% Recurring Revenue Growth between '07 & '08 4% ILF's & Capacity Revenue Growth between '07 & '08; Phasing of ILF's & Capacity driven mainly by Annual License Fee Revenue Recognition in Q4 time period 21% Implementation & Professional Svcs. Revenue Growth between '07
Slide 20: ACIW Annual Revenue by Type
ACIW Annual Revenue by Type ~ 55% of Total Revenue is Monthly Recurring Revenue ~ 45% of Total Revenue is generally split evenly between ILF's & Capacity and Implementation & Professional Services Revenue $374MM $418MM $415 - $425MM 6% CAGR (3 Yr.) In $ Thousands
Slide 21: ACIW Quarterly Revenue from Backlog vs. Sales
ACIW Quarterly Revenue from Backlog vs. Sales ~ 85% of Total Revenue has been from Backlog ~ 15% of Total Revenue has been from Current Quarter Sales In $ Thousands In $ Thousands
Slide 22: EBITDA (Adjusted) Trending
EBITDA (Adjusted) Trending In $ Millions In $ Millions In $ Millions
Slide 23: Operating Free Cash Flow 2007-08-09
Operating Free Cash Flow 2007-08-09 Operating Free Cash Flow 2007-08-09 In $ Thousands In $ Thousands
Slide 24: Annual Guidance
Annual Guidance Annual Guidance
Slide 25: Disciplined Capital Allocation
Disciplined Capital Allocation Objective: Allocate capital to optimize shareholder returns Organic Business Growth Acquisition Share Repurchase Program Internal Investments Geographic build out Product development Cost effectiveness Capital expenditures Bolt-on acquisitions and alliances aligned wit
Slide 26: Historical Capital Allocation
Historical Capital Allocation Capital deployed to support growth strategy and enhance shareholder returns (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)
Slide 27: Non-GAAP Reconciliation
Non-GAAP Reconciliation This presentation includes non-GAAP information: EBITDA and EBITDA Adjusted. EBITDA is defined as net income (oss) before interest, taxes, depreciation and amortization. EBITDA Adjusted is EBITDA less non-recurring items that are not likely to be indicative of the ongoing ope
Slide 28: Non-GAAP Reconciliation
Non-GAAP Reconciliation This presentation also includes operating free cash flow, which is defined as net cash provided (used) by operating activities, excluding cash payments associated with one-time non-recurring items (including employee related activities and early termination of facility leases
Slide 29: Non-GAAP Reconciliation
Non-GAAP Reconciliation 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 present
Slide 30: 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 31: Forward-Looking Statements (continued)
Forward-Looking Statements (continued) 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 act
Slide 32: Forward-Looking Statements (continued)
Forward-Looking Statements (continued) 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 a
Slide 33: Forward-Looking Statements (continued)
Forward-Looking Statements (continued) Security breaches or computer viruses which could harm our business by disrupting delivery of services and damaging our reputation; Our products' and services' possible failure to comply with government regulations and industry standards to which our customers
Slide 34: EVERY SECOND. EVERY DAY.
Ml EVERY SECOND. EVERY DAY.