Fidelity National Information Services, Inc. · NYSE:FIS
Fidelity National Information Services — Q2 2016 Earnings Presentation
28 slides from Fidelity National Information Services's earnings presentation, Jul 26, 2016
Slide 1: Second Quarter 2016 Earnings Call
Second Quarter 2016 Earnings Call July 26, 2016 ©2016 FIS and/or its subsidiaries. All Rights Reserved.
Slide 2: Agenda
Agenda TOPIC SPEAKER Gary Norcross, Business Summary President and CEO Woody Woodall, Financial Summary Chief Financial Officer 2
Slide 3: 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 futu
Slide 4: Business Summary
Business Summary Gary Norcross President and CEO
Slide 5: Second Quarter Highlights
Second Quarter Highlights • RESULTS exceeded expectations • POSITIVE outlook for remainder of 2016 • CONFIDENCE in integration efforts and targets • ROBUST sales pipeline 5
Slide 6: Second Quarter Highlights
Second Quarter Highlights • Integrated Financial Solutions – Regulatory-driven growth in enterprise, governance, risk and compliance – Continued strong performance in digital solutions – EMV card production driving favorable growth • Global Financial Solutions – Continued IP-led growth in I&W – Expa
Slide 7: Consistent Execution of Strategy
Consistent Execution of Strategy • Invest for GROWTH • DE-LEVER the balance sheet • Executive FOCUS on integration 7
Slide 8: Financial Summary
FINANCIAL SUMMARY Woody Woodall Chief Financial Officer
Slide 9: Consolidated Non-GAAP Results
Consolidated Non-GAAP Results Second Quarter and Six Months (YTD) 2016 ($ millions) Q2 METRICS Q2 2016 Y-o-Y vs Q2 2015 Adj. Revenue $ 2,364 5.4% Organic(1) Adj. EBITDA $ 696 12.7%(2) Adj. EBITDA Margin 29.4% 220 bps(2) Adj. EPS $ 0.90 21.6% YTD METRICS YTD 2016 Y-o-Y vs YTD 2015 Adj. Revenue $ 4,62
Slide 10: Integrated Financial Solutions
Integrated Financial Solutions Second Quarter and Six Months (YTD) 2016 ($ millions) Q2 METRICS Q2 2016 Y-o-Y vs Q2 2015 Revenue $ 1,162 8.3% Organic(1) Adj. EBITDA $ 450 8.7%(2) Adj. EBITDA Margin 38.7% ~Flat(2) YTD METRICS YTD 2016 Y-o-Y vs YTD 2015 Revenue $ 2,283 6.9% Organic(1) Adj. EBITDA $ 87
Slide 11: Integrated Financial Solutions
Integrated Financial Solutions Revenue Contribution Revenue Composition – Six Months ($ millions) ORGANIC Six ORGANIC RECURRING REVENUE | 87% Q2 GROWTH Months GROWTH PROFESSIONAL SERVICES | 10% Banking and Wealth $ 514 9.7% $ 1,003 7.4% OTHER | 3% Payments 458 8.3% 907 7.5% Corporate and Digital 190
Slide 12: Global Financial Solutions
Global Financial Solutions Second Quarter and Six Months (YTD) 2016 ($ millions) Q2 METRICS Q2 2016 Y-o-Y vs Q2 2015 Revenue $ 1,048 2.9% Organic(1) Adj. EBITDA $ 287 9.2%(2) Adj. EBITDA Margin 27.4% 210 bps(2) YTD METRICS YTD 2016 Y-o-Y vs YTD 2015 Revenue $ 2,038 3.6% Organic(1) Adj. EBITDA $ 538
Slide 13: Global Financial Solutions
Global Financial Solutions Revenue Contribution Revenue Composition – Six Months ($ millions) RECURRING REVENUE | 68% ORGANIC Six ORGANIC Q2 GROWTH Months GROWTH PROFESSIONAL SERVICES | 27% Institutional and $ 516 5.4% $ 1,020 5.4% Wholesale Banking and 387 0.5% 738 2.2% Payments OTHER | 5% Consulti
Slide 14: Corporate and Other
Corporate and Other Second Quarter and Six Months (YTD) 2016 ($ millions) METRICS Q2 2016 YTD 2016 Adj. Revenue $ 154 $ 305 Adj. EBITDA $ (41) $ (81) • Q2 2016 and Six Months 2016 Adj. EBITDA inclusive of $78M and $154M of Corporate Expense, respectively Revenue Contribution Revenue Composition – Si
Slide 15: Cash Flow and Capital Allocation Strategy
Cash Flow and Capital Allocation Strategy • Cash flow generation – $291 million Q2 2016 free cash flow and $629 million year-to-date • Maintaining a strong balance sheet – $11.1 billion debt outstanding as of June 30, 2016 – De-lever the balance sheet through debt reduction and EBITDA growth • Share
Slide 16: FY 2016 Guidance Increase
FY 2016 Guidance Increase METRIC Original Guidance Revised Guidance Organic Revenue Growth 3.0% to 4.0% 4.0% to 5.0% Adjusted EPS $3.70 to $3.80 $3.75 to $3.85 Growth, as adjusted +15% to 18% +16% to 20% For a description of non-GAAP measures and a reconciliation of GAAP to non-GAAP measures, see Ap
Slide 17: Appendix
APPENDIX
Slide 18: Debt Summary
Debt Summary ($ in millions) Jun 30, Dec 31, Rate 2016 2015 (1) Revolver (2019 Maturity) L+125 bps $ 1,625 $ 1,250 Undrawn revolver capacity 15 bps 1,375 1,750 Term Loan (2017 Maturity) L+125 bps 600 1,300 Term Loan (2018 Maturity) L+125 bps 1,500 1,500 2017 Notes (June) 1.450% 300 300 2018 Notes (A
Slide 19: GFS Revenue by Currency
GFS Revenue by Currency Six Months (YTD) GBP STERLING 9% EURO 9% BRAZIL REAL 7% OTHER 16% US DOLLAR 59% 19
Slide 20: Forward-Looking Statements
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 guidance of the Co
Slide 21: Forward-Looking Statements
Forward-Looking Statements •the risk that implementation of software (including software updates) for customers or at customer locations may result in the corruption or loss of data or customer information, interruption of business operations, exposure to liability claims or loss of customers; •the
Slide 22: Non-GAAP Financial Information and Reconciliation
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. GAAP includes the standards, conventions, and rules accountants follow in recording and summarizing transactio
Slide 23: Definitions of Non-GAAP Financial Measures
Definitions of Non-GAAP Financial Measures Adjusted revenue consists of reported 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 normal co
Slide 24: Definitions of Non-GAAP Financial Measures
Definitions of Non-GAAP Financial Measures Constant currency revenue represents (i) adjusted revenue in respect of the consolidated results and corporate segment and (ii) reported revenue in respect of the IFS and GFS segments, in each case excluding the impact of fluctuations in foreign currency ex
Slide 25: Organic Revenue Growth Calculation
Organic Revenue Growth Calculation Second Quarter 2016 2015 Adjusted Constant In Year Adjusted Organic Revenue FX Currency Revenue Adjustments Base Growth Integrated Financial Solutions $ 1,162 $1 $ 1,163 $ 931 $ 142 $ 1,073 8.3% Global Financial Solutions 1,048 21 1,069 555 483 1,038 2.9% Corporate
Slide 26: Organic Revenue Growth Calculation
Organic Revenue Growth Calculation Six Months (YTD) 2016 2015 Adjusted Constant In Year Adjusted Organic Revenue FX Currency Revenue Adjustments Base Growth Integrated Financial Solutions $ 2,283 $2 $ 2,285 $ 1,859 $ 279 $ 2,138 6.9% Global Financial Solutions 2,038 61 2,099 1,067 958 2,025 3.6% Cor
Slide 27: Reconciliation of GAAP to Non-GAAP Financial Measures
Reconciliation of GAAP to Non-GAAP Financial Measures ($ in Millions, Except Per Share Data, Unaudited) Three Months Ended June 30, 2016 Acquisition, Acquisition Integration, Deferred and Purchase Revenue Severance Accounting GAAP Adjustment Costs Subtotal Amortization Non-GAAP Processing and servic
Slide 28: Reconciliation of GAAP to Non-GAAP Financial Measures
Reconciliation of GAAP to Non-GAAP Financial Measures ($ in Millions, Except Per Share Data, Unaudited) Six Months Ended June 30, 2016 Acquisition, Acquisition Integration, Deferred and Purchase Revenue Severance Accounting GAAP Adjustment Costs Subtotal Amortization Non-GAAP Processing and services
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