United States
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
Current Report
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
Date of Report (date of earliest event reported):
May 10, 2016
Fidelity National Information Services, Inc.
(Exact name of Registrant as Specified in its Charter)
1-16427
(Commission File Number)
Georgia | 37-1490331 | |
(State or Other Jurisdiction of Incorporation or Organization) | (IRS Employer Identification Number) | |
601 Riverside Avenue
Jacksonville, Florida 32204
(Addresses of Principal Executive Offices)
(904) 438-6000
(Registrant's Telephone Number, Including Area Code)
(Former Name or Former Address, if Changed Since Last Report)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions: | ||
o | Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) | |
o | Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) | |
o | Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) | |
o | Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) | |
Item 2.02. Results of Operations and Financial Condition
Exhibit 99.1 to this Current Report contains the presentation materials for the Investor Day Conference of Fidelity National Information Services, Inc. ("FIS") to be held on May 10, 2016.
These materials may contain forward-looking statements under the Private Securities Litigation Reform Act of 1995, which statements involve numerous factors that could cause actual results to differ materially. Additional information about those factors is contained in the presentation materials and in FIS’ filings with the SEC, available from the SEC, FIS’ web site or FIS’ Investor Relations.
The information included in Items 2.02 and 9.01 within this Current Report are being furnished and shall not be deemed “filed” for the purposes of Section 18 of the Securities Exchange Act of 1934, as amended or otherwise subject to the liabilities of that Section. The information included in Items 2.02 and 9.01 within this Current Report shall not be incorporated by reference into any registration statement or other document pursuant to the Securities Act of 1933, as amended.
Item 9.01. Financial Statements and Exhibits
(d) Exhibits
Exhibit | Description | |
99.1 | Investor Day Presentation | |
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.
Fidelity National Information Services, Inc. | ||||
Date: May 10, 2016 | By: | /s/ James W. Woodall | ||
Name: | James W. Woodall | |||
Title: | Corporate Executive Vice President and Chief Financial Officer | |||
Fidelity National Information Services, Inc. | ||||
Date: May 10, 2016 | By: | /s/ Michael A. Nussbaum | ||
Name: | Michael A. Nussbaum | |||
Title: | Corporate Senior Vice President and Chief Accounting Officer | |||
EXHIBIT INDEX
Exhibit | Description | |
99.1 | Investor Day Presentation | |
2 Disclosure 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 strategies or results, or that are not historical facts, are forward-looking statements. Actual results could differ materially from those projected in forward- looking statements due to a variety of factors, including the risks and uncertainties set forth in our earnings press release dated May 3, 2016, our annual report on Form 10-K for 2015 and our other filings with the SEC. We undertake no obligation to update or revise any forward-looking statements. Non-GAAP Measures This presentation will reference certain non-GAAP financial information. For a description and reconciliation of non-GAAP measures presented in this document, please see the Appendix attached to this presentation or visit the Investor Relations section of the FIS website at www.fisglobal.com.
STRATEGIC OVERVIEW Gary Norcross President and Chief Executive Officer SEGMENT UPDATES Anthony Jabbour Co-Chief Operating Officer Marianne Brown Co-Chief Operating Officer Lance Levy Chief Executive Officer, Capco SHAREHOLDER VALUE Woody Woodall Chief Financial Officer
STRATEGIC OVERVIEW Gary Norcross | President and Chief Executive Officer
Why Invest in FIS? DEEP CLIENT RELATIONSHIPS DIVERSIFIED MARKETS SOLUTION AND DELIVERY SCALE INVESTMENT IN INNOVATION MISSION CRITICAL SYSTEMS COMPETITIVE DIFFERENTIATION • PREDICTABLE GROWTH • DIVERSIFICATION • LOWER RISK 5
STRATEGIC OVERVIEW FIS TODAY EXECUTING OUR STRATEGY
S T R A T E G I C O V E R V I E W S H A R E H O L D E R V A L U E 100+ COUNTRIES 55K+ EMPLOYEES $9B+ REVENUE(1) 20K+ CLIENTS $28T+ UNDERLYING FUND ACCOUNTING 848M+ CARDS PROCESSED 10B+ FINANCIAL TRADE RECORDS PROCESSED PER HOUR $800B+ HEDGE FUND ASSETS PROCESSED 36M+ MOBILE BANKING USERS 27B+ TRANSACTIONS PROCESSED $9T+ MONEY MOVED GLOBALLY 420B+ SHARES PER YEAR TRADED THROUGH NETWORK S E G M E N T U P D A T E S (1) FY 2015 Adj. Combined Refer to www.investor.fisglobal.com or the appendix attached to this presentation for a description and reconciliation of GAAP to non-GAAP items FIS Today: Empowering the Financial World 7
Core Banking BANKING AND WEALTH Enterprise Governance, Risk and Compliance Internet Banking Mobile Banking Bill Payment CORPORATE AND DIGITAL Corporate Treasury Wealth Management Image and Output Solutions Issuer Services Network Services Prepaid Services Loyalty PAYMENTS Post-Trade Processing Global Trading Buy Side Risk and Compliance INSTITUTIONAL AND WHOLESALE CONSULTING S T R A T E G I C O V E R V I E W S H A R E H O L D E R V A L U E S E G M E N T U P D A T E S FIS Today: Solutions Covering the FinTech Landscape 8 MOST COMPLETE GLOBAL FINANCIAL SOLUTION SET
NORTH AMERICA Primary Countries • United States • Canada Key Solutions • Banking and Wealth Management • Corporate and Digital • Payments • Buy Side • Capital Markets • Trading • Capco Consulting Est. Market Size $118B* Est. CAGR ’14 –’19 5% ~$6.9B Revenue(1) 76% * 2017 Source: Ovum Technology spending through 2020 (source segmentation): Financial Markets, Retail Banking, Wealth Management; Ovum Technology spending through 2019 (source segmentation): Insurance Includes: Internal, Software, Systems integration, Professional services, Outsourcing Excludes: Hardware (1) FY 2015 Adj. Combined Refer to www.investor.fisglobal.com or the appendix attached to this presentation for a description and reconciliation of GAAP to non-GAAP items S T R A T E G I C O V E R V I E W S H A R E H O L D E R V A L U E S E G M E N T U P D A T E S FIS Today: Global Footprint with a Focused Business Model 9
EMEA Primary Countries • United Kingdom • Germany • France Key Solutions • Banking and Wealth Management • Payments • Buy Side • Capital Markets • Trading • Capco Consulting Est. Market Size $105B* Est. CAGR ’14 –’19 4% ~$1.4B Revenue(1) 15% * 2017 Source: Ovum Technology spending through 2020 (source segmentation): Financial Markets, Retail Banking, Wealth Management; Ovum Technology spending through 2019 (source segmentation): Insurance Includes: Internal, Software, Systems integration, Professional services, Outsourcing Excludes: Hardware (1) FY 2015 Adj. Combined Refer to www.investor.fisglobal.com or the appendix attached to this presentation for a description and reconciliation of GAAP to non-GAAP items S T R A T E G I C O V E R V I E W S H A R E H O L D E R V A L U E S E G M E N T U P D A T E S FIS Today: Global Footprint with a Focused Business Model 10
ASIA PACIFIC Primary Countries • India • Thailand • Singapore • Hong Kong • Australia • Philippines Key Solutions • Banking • Payments • Capital Markets • Trading Est. Market Size $59B* Est. CAGR ’14 –’19 6% ~$500M Revenue(1) 5% * 2017 Source: Ovum Technology spending through 2020 (source segmentation): Financial Markets, Retail Banking, Wealth Management; Ovum Technology spending through 2019 (source segmentation): Insurance Includes: Internal, Software, Systems integration, Professional services, Outsourcing Excludes: Hardware (1) FY 2015 Adj. Combined Refer to www.investor.fisglobal.com or the appendix attached to this presentation for a description and reconciliation of GAAP to non-GAAP items S T R A T E G I C O V E R V I E W S H A R E H O L D E R V A L U E S E G M E N T U P D A T E S FIS Today: Global Footprint with a Focused Business Model 11
LATIN AMERICA Primary Countries • Brazil Key Solutions • Payments • Banking • Digital Est. Market Size $10B* Est. CAGR ’14 –’19 5% ~$350M Revenue(1) 4% * 2017 Source: Ovum Technology spending through 2020 (source segmentation): Financial Markets, Retail Banking, Wealth Management; Ovum Technology spending through 2019 (source segmentation): Insurance Includes: Internal, Software, Systems integration, Professional services, Outsourcing Excludes: Hardware (1) FY 2015 Adj. Combined Refer to www.investor.fisglobal.com or the appendix attached to this presentation for a description and reconciliation of GAAP to non-GAAP items S T R A T E G I C O V E R V I E W S H A R E H O L D E R V A L U E S E G M E N T U P D A T E S FIS Today: Global Footprint with a Focused Business Model 12
RELATIONSHIP HAS GROWN BY 125% Increasing IP-led revenue for GFS clients S T R A T E G I C O V E R V I E W S H A R E H O L D E R V A L U E S E G M E N T U P D A T E S FIS Today: Expanding Relationships 13
BEST PEOPLE Top 5 Best Companies to Work for in India Large Organizations FIS Captive Delivery Centers in India BEST SOLUTIONS Best of the Best in Origination IT Best of the Best in Servicing IT Global Leader Issuer Processor and Packaged Software + STRONG FOUNDATION FOR LONG-TERM GROWTH S T R A T E G I C O V E R V I E W S H A R E H O L D E R V A L U E S E G M E N T U P D A T E S FIS Today: Recognized Leader 14
10 11 12 13 14 15 10 11 12 13 14 15 HIGH RECURRING REVENUE(1) CONSISTENT EPS GROWTH(1) DIVIDENDS(2) (1) Adjusted (2) 3-Year CAGR (2012-2015) Refer to www.investor.fisglobal.com or the appendix attached to this presentation for a description and reconciliation of GAAP to non-GAAP items 10 11 12 13 14 15 6% CAGR 10% CAGR 9% CAGR S T R A T E G I C O V E R V I E W S H A R E H O L D E R V A L U E S E G M E N T U P D A T E S FIS Today: Strong Historical Performance 15
Executing Our Strategy
Effectively sell, deliver and service existing clients BASE BUSINESS GROWTH EXECUTION Strategic investment to leverage solution portfolio, create new white space UNLOCK ENTERPRISE VALUE INNOVATION Continue to strategically expand solution portfolio, client base and talent ACQUISITIONS INORGANIC FINANCIAL DISCIPLINE Focus on strong balance sheet, strengthen cash flow, pay down debt S T R A T E G I C O V E R V I E W S H A R E H O L D E R V A L U E S E G M E N T U P D A T E S Our Growth Strategy 17
PC Banking/Internet eBanking/Payments Smart Card Client Server 1990s 1991 REVENUE ~$500M 2001 REVENUE ~$1.0B Smartphones Biometrics Real Time Offshoring Paperless 2000s “With so much change in technology taking place now, it takes commitment to the industry and a sharp focus on bringing effective technology. They’re [FIS] clearly doing something right.” Jerry Silva, Research Director of Global Banking, IDC Financial Insights 2011 REVENUE ~$5.7B 2010s Public Cloud Digital Experience Machine Learning Tokenization Blockchain 2015 REVENUE ~$9.1B(1) (1) FY 2015 Adj. Combined Refer to www.investor.fisglobal.com or the appendix attached to this presentation for a description and reconciliation of GAAP to non-GAAP items S T R A T E G I C O V E R V I E W S H A R E H O L D E R V A L U E S E G M E N T U P D A T E S Evolving with Technology – Growing Our Base Business Technology disruption continues to challenge financial institutions 18
Effectively sell, deliver and service existing clients BASE BUSINESS GROWTH EXECUTION Strategic investment to leverage solution portfolio, create new white space UNLOCK ENTERPRISE VALUE INNOVATION Continue to strategically expand solution portfolio, client base and talent ACQUISITIONS INORGANIC FINANCIAL DISCIPLINE Focus on strong balance sheet, strengthen cash flow, pay down debt S T R A T E G I C O V E R V I E W S H A R E H O L D E R V A L U E S E G M E N T U P D A T E S Our Growth Strategy 19
Research & Development We put ~6% of revenue back into development to fuel growth. Venture Investments Early round funding approach to invest ahead of demand bringing new solutions to early-adopter clients Disruptive Technologies By looking at a future view 5+ years out, we help forward-thinking clients be “the disruptor.” Bangalore Exploring financial inclusion London Consumer-led design New York Reinventing capital markets San Francisco Deep focus on mobile Bangkok Immersion into cutting-edge technologies Little Rock Venture Center support S T R A T E G I C O V E R V I E W S H A R E H O L D E R V A L U E S E G M E N T U P D A T E S Unlocking Enterprise Value: Multi-faceted Approach to Innovation EMPOWERING CLIENTS TO STAY RELEVANT WITHIN THEIR MARKETS 20
Effectively sell, deliver and service existing clients BASE BUSINESS GROWTH EXECUTION Strategic investment to leverage solution portfolio, create new white space UNLOCK ENTERPRISE VALUE INNOVATION Continue to strategically expand solution portfolio, client base and talent ACQUISITIONS INORGANIC FINANCIAL DISCIPLINE Focus on strong balance sheet, strengthen cash flow, pay down debt S T R A T E G I C O V E R V I E W S H A R E H O L D E R V A L U E S E G M E N T U P D A T E S Our Growth Strategy 21
INCREASES offerings and new markets for whitespace ENHANCES client base with deeper relationships IMPROVES IP-led solution concentration DRIVES financial performance through synergies STRENGTHENS talent and leadership ACCRETIVE to adjusted earnings per share … ENHANCING SHAREHOLDER VALUE STRATEGIC ACQUISITION CRITERIA … 1. Financial services focused 2. New products to extend to markets served 3. New clients or enhanced relationships 4. New market extension 5. New leadership talent 6. Clear path to shareholder value S T R A T E G I C O V E R V I E W S H A R E H O L D E R V A L U E S E G M E N T U P D A T E S SunGard Is a Natural Extension of the FIS Strategy 22
Company Acquisition Date Synergy Target ($M) Exceeded Oct. 2009 260 Sep. 2007 65 Feb. 2006 50 Dec. 2004 25 Jul. 2004 24 Mar. 2004 15 HISTORICALLY EXCEEDED TARGETS BY AN AVERAGE OF 30% ✔ ✔ ✔ ✔ ✔ ✔ Nov. 2015 200 S T R A T E G I C O V E R V I E W S H A R E H O L D E R V A L U E S E G M E N T U P D A T E S Delivering Shareholder Value via Transformational Acquisitions 23
STRATEGIC OVERVIEW Gary Norcross President and Chief Executive Officer SEGMENT UPDATES Anthony Jabbour Co-Chief Operating Officer Marianne Brown Co-Chief Operating Officer Lance Levy Chief Executive Officer, Capco SHAREHOLDER VALUE Woody Woodall Chief Financial Officer
Operating Segments Integrated Financial Solutions Global Financial Solutions S T R A T E G I C O V E R V I E W S H A R E H O L D E R V A L U E S E G M E N T U P D A T E S 25
Integrated Financial Solutions Operating Segments Key Characteristics • North American community & regional financial institutions • One-to-many outsourcing model • Highly recurring • Long-term contracts • Strong margins with continued expansion MARKET DEMANDS BROAD SOLUTION SUITE S T R A T E G I C O V E R V I E W S H A R E H O L D E R V A L U E S E G M E N T U P D A T E S 26
Global Financial Solutions Operating Segments Key Characteristics • Global and international clients • Mission critical applications • Growing trend from build to buy • Diverse markets; scale in key geographies • Higher growth potential with margin expansion SUNGARD EXPANDS IP-LED REVENUE TO ~85% S T R A T E G I C O V E R V I E W S H A R E H O L D E R V A L U E S E G M E N T U P D A T E S 27
Leadership Introductions ANTHONY JABBOUR Co-Chief Operating Officer Global accountability for solution development, sales and delivery of banking and payments offerings. Joined FIS in 2004. Prior to FIS, held executive leadership positions at IBM Global Services Group and CIBC. MARIANNE BROWN Co-Chief Operating Officer LANCE LEVY Chief Executive Officer, Capco Global accountability for sales and delivery of management consulting offerings. Joined Capco/FIS in 2015. Prior to FIS, held senior executive positions at Accenture where he was a member of the Financial Services Leadership Team and the Accenture Leadership Council. Global accountability for solution development, sales and delivery of institutional and wholesale offerings. Joined SunGard Financial Systems as COO in 2014. Prior to FIS, held executive leadership positions at Omgeo, Securities Industry Automation Corporation and ADP. S T R A T E G I C O V E R V I E W S H A R E H O L D E R V A L U E S E G M E N T U P D A T E S 28
Integrated Financial Solutions Anthony Jabbour, Co-Chief Operating Officer
Integrated Financial Solutions (IFS) Today INTEGRATED FINANCIAL SOLUTIONS ~40% EBITDA MARGIN CONTRIBUTED(1) ~$4.3B REVENUES(1) ~86% RECURRING REVENUES(1) (1) FY 2015 Adj. Combined Refer to www.investor.fisglobal.com or the appendix attached to this presentation for a description and reconciliation of GAAP to non-GAAP items S T R A T E G I C O V E R V I E W S H A R E H O L D E R V A L U E S E G M E N T U P D A T E S 30
INTEGRATED PLATFORM provider to U.S. community and regional FIs ONE-to-MANY significant operating leverage HIGHLY RECURRING long-term contracts STRONG MARGINS with continued expansion Integrated Financial Solutions (IFS) Today ~40% EBITDA MARGIN CONTRIBUTED(1) ~$4.3B REVENUES(1) ~86% RECURRING REVENUES(1) INTEGRATED FINANCIAL SOLUTIONS S T R A T E G I C O V E R V I E W S H A R E H O L D E R V A L U E S E G M E N T U P D A T E S (1) FY 2015 Adj. Combined Refer to www.investor.fisglobal.com or the appendix attached to this presentation for a description and reconciliation of GAAP to non-GAAP items 31
INTEGRATED PLATFORM provider to U.S. community and regional FIs ONE-to-MANY significant operating leverage HIGHLY RECURRING long-term contracts STRONG MARGINS with continued expansion Integrated Financial Solutions (IFS) Today MOST COMPLETE SOLUTION SET POSITIONED TO BENEFIT FROM MARKET TRENDS ~14,000 CLIENT RELATIONSHIPS ~40% EBITDA MARGIN CONTRIBUTED(1) ~$4.3B REVENUES(1) ~86% RECURRING REVENUES(1) LEADERSHIP • SCALE • PREDICTABLE PERFORMANCE (1) FY 2015 Adj. Combined Refer to www.investor.fisglobal.com or the appendix attached to this presentation for a description and reconciliation of GAAP to non-GAAP items INTEGRATED FINANCIAL SOLUTIONS S T R A T E G I C O V E R V I E W S H A R E H O L D E R V A L U E S E G M E N T U P D A T E S 32
EXAMPLE REVENUE DRIVERS: Core Accounts Processed 42M Outsourced Core Accounts Core Banking Image and Output Solutions Enterprise Governance, Risk and Compliance Wealth Management BANKING & WEALTH REVENUE ~$1.9B(1) INTEGRATED FINANCIAL SOLUTIONS S T R A T E G I C O V E R V I E W S H A R E H O L D E R V A L U E S E G M E N T U P D A T E S Key Domains and Solutions Our portfolio of integrated solutions uniquely positions FIS to capitalize on today’s market trends Refer to www.investor.fisglobal.com or the appendix attached to this presentation for a description and reconciliation of GAAP to non-GAAP items (1) FY 2015 Adj. Combined 33
EXAMPLE REVENUE DRIVERS: Core Accounts Processed Payment Volumes (Debit/Credit) 42M Outsourced Core Accounts $5.6T Annual Money Movement 370M Cards Issuer Services Network Services Prepaid Services Loyalty PAYMENTS REVENUE ~$1.7B(1) Core Banking Image and Output Solutions Enterprise Governance, Risk and Compliance Wealth Management BANKING & WEALTH REVENUE ~$1.9B(1) INTEGRATED FINANCIAL SOLUTIONS S T R A T E G I C O V E R V I E W S H A R E H O L D E R V A L U E S E G M E N T U P D A T E S Key Domains and Solutions Our portfolio of integrated solutions uniquely positions FIS to capitalize on today’s market trends Refer to www.investor.fisglobal.com or the appendix attached to this presentation for a description and reconciliation of GAAP to non-GAAP items (1) FY 2015 Adj. Combined 34
EXAMPLE REVENUE DRIVERS: Core Accounts Processed Payment Volumes (Debit/Credit) 42M Outsourced Core Accounts $5.6T Annual Money Movement 370M Cards Mobile Banking Accounts 36M+ Mobile Users Mobile Banking Internet Banking Bill Payment Corporate Treasury CORPORATE & DIGITAL REVENUE ~$750M(1) Issuer Services Network Services Prepaid Services Loyalty PAYMENTS REVENUE ~$1.7B(1) Core Banking Image and Output Solutions Enterprise Governance, Risk and Compliance Wealth Management BANKING & WEALTH REVENUE ~$1.9B(1) Refer to www.investor.fisglobal.com or the appendix attached to this presentation for a description and reconciliation of GAAP to non-GAAP items INTEGRATED FINANCIAL SOLUTIONS S T R A T E G I C O V E R V I E W S H A R E H O L D E R V A L U E S E G M E N T U P D A T E S Key Domains and Solutions Our portfolio of integrated solutions uniquely positions FIS to capitalize on today’s market trends (1) FY 2015 Adj. Combined 35
Run the Bank • Modernize systems and processes • Improve efficiencies • Managed IT • Risk, compliance and information security Grow the Bank • Digital and analytics • Wealth management • Treasury MARKET DRIVERS INTEGRATED FINANCIAL SOLUTIONS S T R A T E G I C O V E R V I E W S H A R E H O L D E R V A L U E S E G M E N T U P D A T E S Market Dynamics Market trends drive organic growth 36
Run the Bank • Modernize systems and processes • Improve efficiencies • Managed IT • Risk, compliance and information security Grow the Bank • Digital and analytics • Wealth management • Treasury MARKET DRIVERS FIS GROWTH LEVERS Increase core market share Leverage existing client relationships to cross-sell complete solution suite Focused solution expansion through innovation and partnerships Operational excellence to expand margins INTEGRATED FINANCIAL SOLUTIONS S T R A T E G I C O V E R V I E W S H A R E H O L D E R V A L U E S E G M E N T U P D A T E S Market Dynamics Market trends drive organic growth 37
Run the Bank • Modernize systems and processes • Improve efficiencies • Managed IT • Risk, compliance and information security Grow the Bank • Digital and analytics • Wealth management • Treasury MARKET DRIVERS FIS GROWTH LEVERS Increase core market share Leverage existing client relationships to cross-sell complete solution suite Focused solution expansion through innovation and partnerships Operational excellence to expand margins LONG TERM ~90% of new sales to existing clients DEVELOP ONCE/DELIVER MANY FINE-TUNED CROSS SELL ENGINE BUSINESS MODEL Contracts INTEGRATED FINANCIAL SOLUTIONS S T R A T E G I C O V E R V I E W S H A R E H O L D E R V A L U E S E G M E N T U P D A T E S Market Dynamics Market trends drive organic growth 38
RISK-AS-A-SERVICE Leveraging FIS’ internal investments over the last four years; delivering clients a managed service solution for risk and compliance ENABLING COMPLIANCE DATA & ANALYTICS SOLUTIONS Providing core clients with a holistic view of customers, targeting analytics, real-time reporting and dashboards POWERING GROWTH CARDLESS CASH Recognizing an unsolved opportunity; deployed at more than 30 early adopter institutions across the U.S. ENABLING ADOPTION REAL-TIME PAYMENTS Leader in facilitating real-time payments for financial institutions, continuing to invest and innovate; PayNet now has more than 750 clients. LEVERAGING SCALE INNOVATIVE SOLUTIONS DRIVE HIGHER RATES OF GROWTH EXTENDING RELATIONSHIPS INTEGRATED FINANCIAL SOLUTIONS S T R A T E G I C O V E R V I E W S H A R E H O L D E R V A L U E S E G M E N T U P D A T E S Empowerment in Action 39
• Community bank based in the Midwest • Win based upon FIS’ full digital offering spanning internet banking and mobile fully integrated with billpay, money movement and remote deposit. • Complete integration from a single provider was the key differentiator, replacing several third-party and internally developed applications. DIGITAL BANKING SOLUTIONS Multi-Channel Digital Capability Complete Banking Solution • The $6B bank is moving from a highly customized set of applications to the FIS integrated suite of banking solutions to streamline its vendor relationships and remove the burden of running a highly customized core banking platform. • FIS is also providing a full suite of digital and mobile banking technologies as well as enhanced risk and fraud solutions. INTEGRATED BANKING SUITE EMPOWERING GROWTH THROUGH MARKET LEADERSHIP INTEGRATED FINANCIAL SOLUTIONS S T R A T E G I C O V E R V I E W S H A R E H O L D E R V A L U E S E G M E N T U P D A T E S Growth through Client Empowerment 40
Long-term recurring contracts and sticky relationships as replacement is a major business disruption. Clients rely on FIS expertise companion services – implementations, integration and upgrades. HIGHLY RECURRING REVENUES Increase adoption and transaction volumes in high- margin businesses Continued opportunity to increase margins via our significant operating leverage Integration: delivering on synergy commitments MARGIN EXPANSION Deliver transformative next- generation digital and payments solutions Leverage the strength of our relationships to continue to cross-sell new solutions Lead in real-time payments to capture growing demand GROWTH LEVERS Our integrated solutions perform the core processing of banking and payments for North American-based financial institutions. Leveraged service support and process discipline MISSION CRITICAL SYSTEMS Predictable revenue; operating leverage driving margin expansion INTEGRATED FINANCIAL SOLUTIONS S T R A T E G I C O V E R V I E W S H A R E H O L D E R V A L U E S E G M E N T U P D A T E S Key Operating Characteristics 41
Global Financial Solutions Marianne Brown, Co-Chief Operating Officer Lance Levy, Chief Executive Officer, Capco
Global Financial Solutions (GFS) Today ~27% EBITDA MARGIN CONTRIBUTED(1) ~$4.1B REVENUES(1) ~85% IP-CENTRIC REVENUES(1) (1) FY 2015 Adj. Combined Refer to www.investor.fisglobal.com or the appendix attached to this presentation for a description and reconciliation of GAAP to non-GAAP items S T R A T E G I C O V E R V I E W S H A R E H O L D E R V A L U E S E G M E N T U P D A T E S 43 GLOBAL FINANCIAL SOLUTIONS
Global Financial Solutions (GFS) Today MISSION CRITICAL IP-led solutions; driving sales momentum LEVERAGE portfolio; build once and package LOCALIZE for market; create solution passports SCALE is substantial; built from investments ~27% EBITDA MARGIN CONTRIBUTED(1) ~$4.1B REVENUES(1) ~85% IP-CENTRIC REVENUES(1) (1) FY 2015 Adj. Combined Refer to www.investor.fisglobal.com or the appendix attached to this presentation for a description and reconciliation of GAAP to non-GAAP items S T R A T E G I C O V E R V I E W S H A R E H O L D E R V A L U E S E G M E N T U P D A T E S 44 GLOBAL FINANCIAL SOLUTIONS
Global Financial Solutions (GFS) Today IMPROVED REVENUE QUALITY MARGIN EXPANSION OPPORTUNITY MARKET DIVERSITY DE-RISK CLIENT CONCENTRATION MISSION CRITICAL IP-led solutions; driving sales momentum LEVERAGE portfolio; build once and package LOCALIZE for market; create solution passports SCALE is substantial; built from investments ~27% EBITDA MARGIN CONTRIBUTED(1) ~$4.1B REVENUES(1) ~85% IP-CENTRIC REVENUES(1) MISSION CRITICAL TECHNOLOGY SOLUTIONS & COMPLEMENTARY CONSULTING (1) FY 2015 Adj. Combined Refer to www.investor.fisglobal.com or the appendix attached to this presentation for a description and reconciliation of GAAP to non-GAAP items S T R A T E G I C O V E R V I E W S H A R E H O L D E R V A L U E S E G M E N T U P D A T E S 45 GLOBAL FINANCIAL SOLUTIONS
Key Domains and Solutions BANKING AND PAYMENTS REVENUE ~$1.6B(1) Banking Payments CONSULTING REVENUE ~550M(1) North America Europe INSTITUTIONAL AND WHOLESALE REVENUE ~$2.0B(1) Buy Side Capital Markets Global Trading LEVERAGE SOLUTIONS AND LOCALIZE IN STRATEGIC MARKETS (1) FY 2015 Adj. Combined Refer to www.investor.fisglobal.com or the appendix attached to this presentation for a description and reconciliation of GAAP to non-GAAP items S T R A T E G I C O V E R V I E W S H A R E H O L D E R V A L U E S E G M E N T U P D A T E S Well positioned to capitalize on increasing demand for outsourcing 46 GLOBAL FINANCIAL SOLUTIONS
Core Banking Channel Issuer Services Prepaid BANKING AND PAYMENTS S T R A T E G I C O V E R V I E W S H A R E H O L D E R V A L U E S E G M E N T U P D A T E S Key Domains and Solutions 47 GLOBAL FINANCIAL SOLUTIONS
Core Banking Channel Issuer Services Prepaid BANKING AND PAYMENTS Fund Accounting Middle Office Risk Management Private Equity Reconciliation BUY SIDE CAPITAL MARKETS Back Office Processing Risk and Compliance Tax Reporting Securities Finance and Collateral Corporate Actions Trade Execution Order Management Position Risk Management Real-time and Historical Data Global Connectivity GLOBAL TRADING S T R A T E G I C O V E R V I E W S H A R E H O L D E R V A L U E S E G M E N T U P D A T E S Key Domains and Solutions 48 GLOBAL FINANCIAL SOLUTIONS
CUSTOMERS SERVED: Banks | Investment Banks | Asset Managers | Hedge Funds | Private Equity | Trading Desks Core Banking Channel Issuer Services Prepaid BANKING AND PAYMENTS Fund Accounting Middle Office Risk Management Private Equity Reconciliation BUY SIDE CAPITAL MARKETS Back Office Processing Risk and Compliance Tax Reporting Securities Finance and Collateral Corporate Actions Trade Execution Order Management Position Risk Management Real-time and Historical Data Global Connectivity GLOBAL TRADING S T R A T E G I C O V E R V I E W S H A R E H O L D E R V A L U E S E G M E N T U P D A T E S Key Domains and Solutions 49 GLOBAL FINANCIAL SOLUTIONS
SOLUTIONS FIT FOR PURPOSE ACROSS GLOBAL FINANCIAL SERVICES LANDSCAPE CUSTOMERS SERVED: Banks | Investment Banks | Asset Managers | Hedge Funds | Private Equity | Trading Desks Core Banking Channel Issuer Services Prepaid BANKING AND PAYMENTS Fund Accounting Middle Office Risk Management Private Equity Reconciliation BUY SIDE CAPITAL MARKETS Back Office Processing Risk and Compliance Tax Reporting Securities Finance and Collateral Corporate Actions Trade Execution Order Management Position Risk Management Real-time and Historical Data Global Connectivity GLOBAL TRADING S T R A T E G I C O V E R V I E W S H A R E H O L D E R V A L U E S E G M E N T U P D A T E S Key Domains and Solutions 50 GLOBAL FINANCIAL SOLUTIONS
GFS – Institutional and Wholesale BUY SIDE CAPITAL MARKETS GLOBAL TRADING CAPABILITIES OPERATING LEVERAGE DRIVING ROBUST MARGIN EXPANSION RECORD KEEPING AND INVESTMENT ACCOUNTING TRADE ENABLEMENT SECURITIES, FUTURES & TRANSACTION PROCESSING RISK MEASUREMENT AND MANAGEMENT REGULATORY REPORTING AND COMPLIANCE Investment accounting NAV creation Books and records processing Trade life cycle solutions Access to global trading venues Post-trade processing Securities and derivatives Risk management solutions (Investment, trading and portfolio risk) Market surveillance Trade compliance U.S. tax processing Underlying fund accounting for more than $28 trillion in assets Global trading network linked to 150 trading venues; connecting more than 2,000 buy sides to 500 sell side firms Processing more than 325 million securities finance accounting transactions per year Risk solutions that are the standard of choice for the largest global banks Meet the demands of the ever-changing global regulatory environment S T R A T E G I C O V E R V I E W S H A R E H O L D E R V A L U E S E G M E N T U P D A T E S Key capabilities 51 GLOBAL FINANCIAL SOLUTIONS
CONSUMER/ COMMERCIAL BANKING CAPITAL MARKETS/ INSTITUTIONAL EMPOWERING THE FINANCIAL WORLD S T R A T E G I C O V E R V I E W S H A R E H O L D E R V A L U E S E G M E N T U P D A T E S Serving Clients across the Spectrum of Financial Services 52 GLOBAL FINANCIAL SOLUTIONS
• Integrated three FIS solutions: Corporate Actions, Fund Accounting and Collateral • Aligned superior technology with streamlined operations to achieve cost efficiencies CROSS SELL Tier 1 Multinational Investment Firm S T R A T E G I C O V E R V I E W S H A R E H O L D E R V A L U E S E G M E N T U P D A T E S Growth through Client Empowerment 53 GLOBAL FINANCIAL SOLUTIONS
• Integrated three FIS solutions: Corporate Actions, Fund Accounting and Collateral • Aligned superior technology with streamlined operations to achieve cost efficiencies CROSS SELL Tier 1 Multinational Investment Firm • Post-trade derivatives processing and related services • FIS’ IP and deep subject matter expertise enabled Barclays to leverage industry best practices, new technologies and stay ahead of changing regulation. OUTSOURCING S T R A T E G I C O V E R V I E W S H A R E H O L D E R V A L U E S E G M E N T U P D A T E S Growth through Client Empowerment 54 GLOBAL FINANCIAL SOLUTIONS
FINANCIAL INCLUSION • FIS’ second new bank implementation in India • Combines FIS core solutions with innovative hand-held field force enablement technology to bring banking to rural consumers • Integrated three FIS solutions: Corporate Actions, Fund Accounting and Collateral • Aligned superior technology with streamlined operations to achieve cost efficiencies CROSS SELL Tier 1 Multinational Investment Firm • Post-trade derivatives processing and related services • FIS’ IP and deep subject matter expertise enabled Barclays to leverage industry best practices, new technologies and stay ahead of changing regulation. OUTSOURCING S T R A T E G I C O V E R V I E W S H A R E H O L D E R V A L U E S E G M E N T U P D A T E S Growth through Client Empowerment 55 GLOBAL FINANCIAL SOLUTIONS
FINANCIAL INCLUSION • FIS’ second new bank implementation in India • Combines FIS core solutions with innovative hand-held field force enablement technology to bring banking to rural consumers • Integrated three FIS solutions: Corporate Actions, Fund Accounting and Collateral • Aligned superior technology with streamlined operations to achieve cost efficiencies CROSS SELL Tier 1 Multinational Investment Firm • The UK’s first “app-only” bank • High profile implementation reinforcing our leadership position with disruptive challengers DISRUPTOR • Post-trade derivatives processing and related services • FIS’ IP and deep subject matter expertise enabled Barclays to leverage industry best practices, new technologies and stay ahead of changing regulation. OUTSOURCING S T R A T E G I C O V E R V I E W S H A R E H O L D E R V A L U E S E G M E N T U P D A T E S Growth through Client Empowerment 56 GLOBAL FINANCIAL SOLUTIONS
Play Atom video S T R A T E G I C O V E R V I E W S H A R E H O L D E R V A L U E S E G M E N T U P D A T E S 57 GLOBAL FINANCIAL SOLUTIONS
Account processing and record keeping for buy side and capital markets Account processing and payments for international financial institutions Long-term client relationships MISSION CRITICAL SYSTEMS S T R A T E G I C O V E R V I E W S H A R E H O L D E R V A L U E S E G M E N T U P D A T E S Global Financial Solutions 58 GLOBAL FINANCIAL SOLUTIONS
Account processing and record keeping for buy side and capital markets Account processing and payments for international financial institutions Long-term client relationships MISSION CRITICAL SYSTEMS Highly renewable – sticky applications Strong pull-through of companion solutions and services Recurring revenue enables predictability RECURRING REVENUES S T R A T E G I C O V E R V I E W S H A R E H O L D E R V A L U E S E G M E N T U P D A T E S Global Financial Solutions 59 GLOBAL FINANCIAL SOLUTIONS
Account processing and record keeping for buy side and capital markets Account processing and payments for international financial institutions Long-term client relationships MISSION CRITICAL SYSTEMS Highly renewable – sticky applications Strong pull-through of companion solutions and services Recurring revenue enables predictability RECURRING REVENUES IP-led solution offerings Operational efficiencies; process improvements and operating leverage Accelerate and exceed synergy commitments MARGIN EXPANSION S T R A T E G I C O V E R V I E W S H A R E H O L D E R V A L U E S E G M E N T U P D A T E S Global Financial Solutions 60 GLOBAL FINANCIAL SOLUTIONS
Account processing and record keeping for buy side and capital markets Account processing and payments for international financial institutions Long-term client relationships MISSION CRITICAL SYSTEMS Highly renewable – sticky applications Strong pull-through of companion solutions and services Recurring revenue enables predictability RECURRING REVENUES IP-led solution offerings Operational efficiencies; process improvements and operating leverage Accelerate and exceed synergy commitments MARGIN EXPANSION Innovation aligned to market opportunity Leverage IP and scale into growth markets Leverage power of FIS and Capco solutions and client relationships GROWTH LEVERS S T R A T E G I C O V E R V I E W S H A R E H O L D E R V A L U E S E G M E N T U P D A T E S Global Financial Solutions 61 GLOBAL FINANCIAL SOLUTIONS
Account processing and record keeping for buy side and capital markets Account processing and payments for international financial institutions Long-term client relationships MISSION CRITICAL SYSTEMS Highly renewable – sticky applications Strong pull-through of companion solutions and services Recurring revenue enables predictability RECURRING REVENUES IP-led solution offerings Operational efficiencies; process improvements and operating leverage Accelerate and exceed synergy commitments MARGIN EXPANSION Innovation aligned to market opportunity Leverage IP and scale into growth markets Leverage power of FIS and Capco solutions and client relationships GROWTH LEVERS Predictable performance, improved revenue quality and margin expansion S T R A T E G I C O V E R V I E W S H A R E H O L D E R V A L U E S E G M E N T U P D A T E S Global Financial Solutions 62 GLOBAL FINANCIAL SOLUTIONS
Global Financial Solutions Marianne Brown, Co-Chief Operating Officer Lance Levy, Chief Executive Officer, Capco
GFS Consulting – Capco Today Shared clients and complementary focus on key domains and growth segments support growth of FIS Deep domain experience, thought leadership and unique culture ~$550M REVENUES (1) (1) FY 2015 Adj. Combined Refer to www.investor.fisglobal.com or the appendix attached to this presentation for a description and reconciliation of GAAP to non-GAAP items S T R A T E G I C O V E R V I E W S H A R E H O L D E R V A L U E S E G M E N T U P D A T E S Strong market presence focused on the same domains as FIS 64 GFS – CONSULTING
GFS Consulting – Capco Today KEY DOMAINS SERVED Retail Banking and Distribution | Commercial and SME Corporate and Institutional | Wealth BANKING AND PAYMENTS Post-Trade Operations | Finance, Risk and Treasury Buy Side | Sourcing Solutions INSTITUTIONAL AND WHOLESALE Shared clients and complementary focus on key domains and growth segments support growth of FIS Deep domain experience, thought leadership and unique culture ~$550M REVENUES (1) (1) FY 2015 Adj. Combined Refer to www.investor.fisglobal.com or the appendix attached to this presentation for a description and reconciliation of GAAP to non-GAAP items S T R A T E G I C O V E R V I E W S H A R E H O L D E R V A L U E S E G M E N T U P D A T E S Strong market presence focused on the same domains as FIS 65 GFS – CONSULTING
GFS Consulting – Capco Today DIGITAL Defining Strategies Creating Experiences Delivering Platforms Analytics Next Generation Technology CAPABILITIES AND SOLUTIONS SOURCING SOLUTIONS Complex Transition Leadership Utilities Run Services Training and Development TECHNOLOGY IT Strategy & Solution Architecture Engineering Information Management Platforms and Software BUSINESS CONSULTING Business Strategy Program Management Business Analysis Change Management KEY DOMAINS SERVED Retail Banking and Distribution | Commercial and SME Corporate and Institutional | Wealth BANKING AND PAYMENTS Post-Trade Operations | Finance, Risk and Treasury Buy Side | Sourcing Solutions INSTITUTIONAL AND WHOLESALE DELIVERY 3,100+ FINANCIAL SERVICES PROFESSIONALS NEARSHORE AND OFFSHORE OPERATING CENTERS Shared clients and complementary focus on key domains and growth segments support growth of FIS Deep domain experience, thought leadership and unique culture ~$550M REVENUES (1) (1) FY 2015 Adj. Combined Refer to www.investor.fisglobal.com or the appendix attached to this presentation for a description and reconciliation of GAAP to non-GAAP items S T R A T E G I C O V E R V I E W S H A R E H O L D E R V A L U E S E G M E N T U P D A T E S Strong market presence focused on the same domains as FIS 66 GFS – CONSULTING
Capco Journey 2013 – 2015 EXPANSION 2012 CAPITAL MARKETS ADVISORY 2016 FOCUSED GROWTH Thought Leadership. Innovation. Change. Transformation. S T R A T E G I C O V E R V I E W S H A R E H O L D E R V A L U E S E G M E N T U P D A T E S Evolution from thought leadership niche provider, to focused, high-value transformational consulting capability to complement FIS offerings 67 GFS – CONSULTING
Capco Journey 2013 – 2015 EXPANSION 2012 CAPITAL MARKETS ADVISORY 2016 FOCUSED GROWTH Thought Leadership. Innovation. Change. Transformation. Refocus on high-value consulting Independent, focused and collaboration with FIS Thought leadership and transformation capability Disciplined global sales and delivery Focus on higher growth segments + GFS – CONSULTING S T R A T E G I C O V E R V I E W S H A R E H O L D E R V A L U E S E G M E N T U P D A T E S Evolution from thought leadership niche provider, to focused, high-value transformational consulting capability to complement FIS offerings 68
LONG-STANDING FIS CLIENT LAUNCHING DIGITAL BANK AIMED AT MILLENNIALS Client strategy to launch new digital mobile-only bank Client intimacy through thought leadership, deep domain expertise and agile operational approach STRONG FOUNDATIONS HIGH IMPACT Bespoke, innovative digital platform, designed around the customer Digital innovation supported through APIs as a tool for rapid business reconfiguration and future growth from next-generation customers DIGITAL INNOVATION STRONG INNOVATION Support client in end-to-end program execution Global delivery model centered around digital and technology hubs in New York, Toronto and London EXECUTION EXCELLENCE ONE FIS S T R A T E G I C O V E R V I E W S H A R E H O L D E R V A L U E S E G M E N T U P D A T E S Growth through Client Empowerment 69 GFS – CONSULTING
STRATEGIC OVERVIEW Gary Norcross President and Chief Executive Officer SEGMENT UPDATES Anthony Jabbour Co-Chief Operating Officer Marianne Brown Co-Chief Operating Officer Lance Levy Chief Executive Officer, Capco SHAREHOLDER VALUE Woody Woodall Chief Financial Officer
SHAREHOLDER VALUE Woody Woodall | Chief Financial Officer
SHAREHOLDER VALUE Woody Woodall Chief Financial Officer FIS BUSINESS MODEL OPERATING SEGMENTS CAPITAL ALLOCATION 2016 – 2018 OUTLOOK WHY INVEST IN FIS?
FIS Business Model: Maximizes Industry Opportunity Industry Characteristics Investors Value FIS Long-term Contracts Mission Critical Applications Cash Flow Generation Consistent Earnings Growth IP-centric Solution Set S T R A T E G I C O V E R V I E W S H A R E H O L D E R V A L U E S E G M E N T U P D A T E S 73
FIS Business Model: Compelling Business Model High-quality revenue Strong cash generation Sustainable EPS growth Expanding margins SunGard fits these qualities S T R A T E G I C O V E R V I E W S H A R E H O L D E R V A L U E S E G M E N T U P D A T E S 74
• Revenue from long-term contractual relationships • Need for increased use of technology to remain competitive • Leveraged scale drives industry- leading margins Drivers of Growth ~86% RECURRING REVENUES ~40% EBITDA MARGIN CONTRIBUTED ~$4.3B REVENUES ONE-to- MANY HIGH INCREMENTAL MARGINS Refer to www.investor.fisglobal.com or the appendix attached to this presentation for a description and reconciliation of GAAP to non-GAAP items S T R A T E G I C O V E R V I E W S H A R E H O L D E R V A L U E S E G M E N T U P D A T E S Operating Segments: IFS Adjusted Combined FY 2015 75
• Compelling value proposition of combined intellectual property and professional services • Increase in technology spending is attributed to growing client need for efficiencies • Operational excellence plus synergies drive margin expansion Drivers of Growth ~85% IP-LED REVENUE ~70% RECURRING REVENUES ~27% EBITDA MARGIN CONTRIBUTED ~$4.1B REVENUES S T R A T E G I C O V E R V I E W S H A R E H O L D E R V A L U E S E G M E N T U P D A T E S Operating Segments: GFS Adjusted Combined FY 2015 76 Refer to www.investor.fisglobal.com or the appendix attached to this presentation for a description and reconciliation of GAAP to non-GAAP items
The Corporate and Other segment is inclusive of corporate expenses of $342M. Adj. Combined FY 2015 Revenue $ 651M EBITDA $ (189)M Public Sector & Education 36% Commercial Services 43% Retail Check Processing 21% C&O Revenue Composition ~7% TOTAL FIS REVENUE S T R A T E G I C O V E R V I E W S H A R E H O L D E R V A L U E S E G M E N T U P D A T E S Operating Segments: Corporate and Other Adjusted Combined FY 2015 77 Refer to www.investor.fisglobal.com or the appendix attached to this presentation for a description and reconciliation of GAAP to non-GAAP items
Capital Allocation: Consistent Capital Allocation Practices • Aggressively pay down debt • Preserve investment grade credit ratings Strong Balance Sheet Investing for Growth • Internal investment for organic growth • Acquisitions accretive to future EPS growth Return Capital to Shareholders • Continued focus on improving cash flow • Maintain dividends S T R A T E G I C O V E R V I E W S H A R E H O L D E R V A L U E S E G M E N T U P D A T E S 78
$4.8 $4.4 $4.5 $5.1 $11.4(1) 2.8 2.4 2.4 2.6 ~4.0 ~2.5 2011 2012 2013 2014 2015 2016 2017 Total Debt Leverage Ratio(2) (1) December 31, 2015 debt is adjusted to include debt issuance costs. Per FASB issued Accounting Standard Update 2015-03, as of January 2016, debt issuance costs are recorded as a reduction to debt. All calculations related to debt are based on debt gross of debt issuance costs. (2) Adds back stock option expense to EBITDA and run-rate synergies in 2015 and 2016 Targeting to exit 2017 at approximately 2.5x leverage S T R A T E G I C O V E R V I E W S H A R E H O L D E R V A L U E S E G M E N T U P D A T E S Capital Allocation: Commitment to Debt Reduction $ Billions 79
Capital Allocation: M&A Principles Create Long-term Shareholder Returns • Buy products to cross sell/ up sell • Expand market opportunities • Gain additional operational scale STRATEGIC RATIONALE • Risk-adjusted returns meet strategic criteria • Solid financial performance and outlook • Accretive to revenue growth and cash EPS TARGETED FINANCIAL MEASURES STRATEGIC RATIONALE TARGETED FINANCIAL MEASURES • End customers not aligned to long-term FIS strategy • Minimal disruption to broader portfolio • Strategic use of net proceeds • Attractive valuation for current market • Maintain balance sheet strength Divestiture Principles Acquisition Principles S T R A T E G I C O V E R V I E W S H A R E H O L D E R V A L U E S E G M E N T U P D A T E S 80
Capital Allocation: SunGard Integration Overview INTEGRATION PLAYBOOK Internal value enhancements • External vendor savings • Scale of organizational structures Enhance operating model • Global delivery model • Sales force and marketing efficiency Leveraged infrastructure • Data center consolidation • Effective facilities management SunGard update • Accelerated run-rate forecast for 2016 • We will exit 2017 over $200M run-rate savings OVERACHIEVING FORECASTED SYNERGIES Exceeding forecasted synergy targets • Set clear and aggressive targets • Historically exceed targets Consistency • 10+ years acquisition experience S T R A T E G I C O V E R V I E W S H A R E H O L D E R V A L U E S E G M E N T U P D A T E S 81
2016 – 2018 Financial Outlook: Integrated Financial Solutions (IFS) Current revenue mix continues Macro-economic softness (payment volumes) Accelerated bank consolidation Softness in professional services Cross-sale and up-sale execution FinTech macro spend exceeds expectations Enhanced growth in mobile / digital solutions Improved revenue mix Exceed synergy expectations High Growth: + 6% ANNUAL ORGANIC REVENUE GROWTH SCENARIOS Low Growth: + 3% Low: + 10 bps High: + 30 bps ANNUAL MARGIN EXPANSION SCENARIOS (WITH SYNERGIES) S T R A T E G I C O V E R V I E W S H A R E H O L D E R V A L U E S E G M E N T U P D A T E S 82 Refer to www.investor.fisglobal.com or the appendix attached to this presentation for a description and reconciliation of GAAP to non-GAAP items
2016 – 2018 Financial Outlook: Global Financial Solutions (GFS) Negative revenue mix-shift e.g., accelerated Consulting growth Professional services volatility continues Ongoing weakness of global economy Lack of revenue synergies Ramp in Consulting recovery Improved international markets Revenue synergies High Growth: + 8% ANNUAL ORGANIC REVENUE GROWTH SCENARIOS Low Growth: + 3% Low: + 100 bps High: + 150 bps ANNUAL MARGIN EXPANSION SCENARIOS (WITH SYNERGIES) Continue to exceed synergy expectations Continued leveraging of scale S T R A T E G I C O V E R V I E W S H A R E H O L D E R V A L U E S E G M E N T U P D A T E S 83 Refer to www.investor.fisglobal.com or the appendix attached to this presentation for a description and reconciliation of GAAP to non-GAAP items
Consolidated FIS Outlook: 2016 – 2018 2016 – 2018 Outlook ANNUAL Organic Revenue 3% to 7% EBITDA Margin Expansion (synergies included) 75 to 125 bps Adjusted Net Earnings(1) 13% to 18% S T R A T E G I C O V E R V I E W S H A R E H O L D E R V A L U E S E G M E N T U P D A T E S (1) Refers to Adjusted net earnings from continuing operations Refer to www.investor.fisglobal.com or the appendix attached to this presentation for a description and reconciliation of GAAP to non-GAAP items 84
Consolidated FIS Outlook: 2016 – 2018 Earnings Growth Drivers 3% - 7% 13% - 18% ~6% ~2% 2% - 3% Organic Revenue Growth Margin Expansion Debt Paydown Effective Tax Rate Reduction Adjusted Net Earnings Growth Implied 2018 EPS: $4.70 - $5.10 (BAU + Synergies) (1) S T R A T E G I C O V E R V I E W S H A R E H O L D E R V A L U E S E G M E N T U P D A T E S 85 Assumes no M&A activity (1) Refers to Adjusted net earnings from continuing operations Refer to www.investor.fisglobal.com or the appendix attached to this presentation for a description and reconciliation of GAAP to non-GAAP items
3 YEAR PRICE / EARNINGS VALUATION DISCOUNT Why Invest in FIS?: Attractive Valuation Relative to Peers • FIS valued at 20% discount to Peer Average • Valuation trending positively • Focus on consistent quality earnings growth to drive long-term shareholder value Source: 5/4/16 FactSet, Peer Group of ACIW, ACN, FISV, G, INFY, JKHY, SSNC, TEMN, TSS, WIT SIGNIFICANT VALUATION GAP 8.0x 10.0x 12.0x 14.0x 16.0x 18.0x 20.0x 22.0x 24.0x Q1 2013 Q1 2014 Q1 2015 Q1 2016 FIS Peer Average S&P S T R A T E G I C O V E R V I E W S H A R E H O L D E R V A L U E S E G M E N T U P D A T E S 86
Why Invest in FIS?: Positioned for Long-term Shareholder Returns STRONG CASH FLOW GENERATION CONTINUED MARKET LEADERSHIP HIGH-QUALITY RECURRING REVENUE COMPELLING VALUATION GAP PREDICTABLE AND CONSISTENT EPS GROWTH Q&A S T R A T E G I C O V E R V I E W S H A R E H O L D E R V A L U E S E G M E N T U P D A T E S 87
Why Invest in FIS? DEEP CLIENT RELATIONSHIPS DIVERSIFIED MARKETS SOLUTION AND DELIVERY SCALE INVESTMENT IN INNOVATION MISSION CRITICAL SYSTEMS COMPETITIVE DIFFERENTIATION • PREDICTABLE GROWTH • DIVERSIFICATION • LOWER RISK 88
APPENDIX
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 Company, business and market conditions, outlook, foreign currency exchange rates, expected dividends and share repurchases, the Company’s sales pipeline and anticipated profitability and growth, as well as other statements about our expectations, hopes, intentions, or strategies regarding the future, are forward-looking statements. These statements relate to future events and our future results, and involve a number of risks and uncertainties. Forward-looking statements are based on management’s beliefs, as well as assumptions made by, and information currently available to, management. Any statements that refer to beliefs, expectations, projections or other characterizations of future events or circumstances and other statements that are not historical facts are forward-looking statements. Actual results, performance or achievement could differ materially from those contained in these forward-looking statements. The risks and uncertainties that forward-looking statements are subject to include, without limitation: • the risk that acquired businesses will not be integrated successfully, or that the integration will be more costly or more time-consuming and complex than anticipated; • the risk that cost savings and other synergies anticipated to be realized from acquisitions may not be fully realized or may take longer to realize than expected; • the risk of doing business internationally; • changes in general economic, business and political conditions, including the possibility of intensified international hostilities, acts of terrorism, and changes in either or both the United States and international lending, capital and financial markets; • the effect of legislative initiatives or proposals, statutory changes, governmental or other applicable regulations and/or changes in industry requirements, including privacy regulations; Forward-Looking Statements A P P E N D I X 90
• the risks of reduction in revenue from the elimination of existing and potential customers due to consolidation in, or new laws or regulations affecting, the banking, retail and financial services industries or due to financial failures or other setbacks suffered by firms in those industries; • 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, corruption or loss of personal information and computer viruses and other malware affecting our software or platforms, and the reactions of customers, card associations, government regulators and others to any such events; • 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 reaction of current and potential customers to communications from us or regulators regarding information security, risk management, internal audit or other matters; • competitive pressures on pricing related to our solutions including the ability to attract new, or retain existing, customers; • an operational or natural disaster at one of our major operations centers; and • other risks detailed under “Risk Factors” and other sections of our Annual Report on Form 10-K for the fiscal year ended December 31, 2015 and other filings with the SEC. Other unknown or unpredictable factors also could have a material adverse effect on our business, financial condition, results of operations and prospects. Accordingly, readers should not place undue reliance on these forward-looking statements. These forward-looking statements are inherently subject to uncertainties, risks and changes in circumstances that are difficult to predict. Except as required by applicable law or regulation, we do not undertake (and expressly disclaim) any obligation and do not intend to publicly update or review any of these forward-looking statements, whether as a result of new information, future events or otherwise. Forward-Looking Statements A P P E N D I X 91
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 the preparation of financial statements. In addition to reporting financial results in accordance with GAAP, the company has provided non-GAAP financial measures, which it believes are useful to help investors better understand its financial performance, competitive position and prospects for the future. For these reasons, management also uses these measures in part to assess its performance. These non-GAAP measures include: adjusted revenue, adjusted EBITDA, adjusted EBITDA margin, adjusted combined revenue, adjusted combined EBITDA, adjusted combined EBITDA margin, EBITDA, constant currency revenue, organic revenue growth, adjusted net earnings from continuing operations (including per share amounts), adjusted cash flow from operations, and free cash flow. These non-GAAP measures may be used in this presentation and/or in the applicable supplemental financial information. Any non-GAAP measures should be considered in context with the GAAP financial presentation and should not be considered in isolation or as a substitute for GAAP measures. Further, FIS’ non-GAAP measures may be calculated differently from similarly titled measures of other companies. Reconciliations of these non-GAAP measures to related GAAP measures, including footnotes describing the specific adjustments, are provided in the attached schedules and in the Investor Relations section of the FIS web site, www.fisglobal.com. Non-GAAP Financial Information and Reconciliation A P P E N D I X 92
Adjusted revenue includes reported revenue and is increased to adjust for the purchase accounting deferred revenue adjustment to estimated fair value, determined as fulfillment cost plus a normal profit margin. The deferred revenue adjustment represents revenue that would have been recognized in the normal course of business by SunGard but was not recognized due to GAAP purchase accounting adjustments. Adjusted EBITDA excludes certain costs and other transactions which management deems non-recurring or unusual in nature, the removal of which improves comparability of operating results across reporting periods. Adjusted EBITDA margin reflects adjusted EBITDA divided by adjusted revenue. Adjusted combined revenue includes reported revenue for FIS and SunGard combined for periods in 2014 and 2015 and excludes the impacts of SunGard businesses that were divested prior to being purchased by FIS. Adjusted combined EBITDA includes EBITDA for FIS and SunGard combined for periods in 2014 and 2015 and excludes certain costs and other transactions which management deems non-recurring or unusual in nature, such as purchase accounting amortization, acquisition, integration and severance costs and restructuring costs, the removal of which improves comparability of operating results across reporting periods. Adjusted combined EBITDA margin reflects adjusted combined EBITDA divided by adjusted combined revenue. Definitions of Non-GAAP Financial Measures A P P E N D I X 93
EBITDA reflects earnings from continuing operations before interest, taxes, depreciation and amortization. Constant currency revenue is reported revenue excluding the impact of fluctuations in foreign currency exchange rates in the current period. Organic revenue growth includes reported revenue, adjusted to exclude revenue of any divestitures, include pre-acquisition revenue for companies acquired during the applicable reporting period and exclude the impact of foreign currency fluctuations. Adjusted net earnings from continuing operations excludes the after tax impact of certain costs and other transactions which management deems non-recurring or unusual in nature, the removal of which improves comparability of operating results across reporting periods. It also excludes the after tax impact of acquisition-related purchase accounting amortization, which is recurring. Adjusted net earnings per diluted share, or adjusted EPS, reflects adjusted net earnings from continuing operations divided by weighted average diluted shares outstanding. Adjusted cash flow from operations reflects GAAP cash flow from operations as adjusted for the net change in settlement assets and obligations, and excludes certain transactions that are closely associated with non-operating activities or are otherwise non-recurring or unusual in nature and not indicative of future operating cash flows. Free cash flow reflects adjusted cash flow from operations less capital expenditures. Free cash flow does not represent our residual cash flow available for discretionary expenditures, since we have mandatory debt service requirements and other non-discretionary expenditures that are not deducted from the measure. Definitions of Non-GAAP Financial Measures A P P E N D I X 94
Reconciliation of GAAP to Non-GAAP Financial Measures (in Millions, Except Per Share Data) (Unaudited) GAAP to Non-GAAP Reconciliation - Consolidated Adjusted Combined (In millions) Year ended December 31, 2015 Integrated Global Financial Financial Corporate Solutions Solutions and Other Consolidated Processing and services revenue, as reported 3,846 2,360 390 6,596 Historical SunGard revenue, as adjusted 496 1,780 213 2,489 FIS non-GAAP adjustments: Acquisition deferred revenue adjustment - - 48 48 Adjusted combined revenue from continuing operations 4,342 4,140 651 9,133 Operating income (loss), as reported 1,342 407 (650) 1,099 Historical SunGard operating income, as adjusted 146 461 (119) 488 FIS non-GAAP adjustments: Acquisition deferred revenue adjustment - - 48 48 Acquisition, integration and severance costs - - 171 171 Global restructure - - 45 45 Purchase accounting amortization - - 238 238 Adjusted combined operating income (loss) 1,488 868 (267) 2,089 FIS depreciation and amortization from continuing operations 226 146 59 431 Historical SunGard depreciation and amortization from continuing operations 24 89 19 132 Adjusted combined EBITDA 1,738 1,103 (189) 2,652 Non-GAAP combined operating margin 34.3% 21.0% N/M 22.9% Adjusted combined EBITDA margin 40.0% 26.6% N/M 29.0% A P P E N D I X 95
Reconciliation of GAAP to Non-GAAP Financial Measures (in Millions, Except Per Share Data) (Unaudited) GAAP to Non-GAAP Reconciliation - Consolidated Adjusted Revenue For the Years ended 2010-2015 (In millions) 2015 2014 2013 2012 2011 2010 Processing and services revenues 6595.2 6,413.8 6,063.4 5,795.8 5,616.5 5,138.9 Acquisition deferred revenue adjustments 47.5 - - - - 18.5 Brazilian Venture - - - - - (83.3) Plus Contract Settlement - 9.0 - - - - Adjusted Revenue 6642.7 6,422.8 6,063.4 5,795.8 5,616.5 5,074.1 A P P E N D I X 96
Reconciliation of GAAP to Non-GAAP Financial Measures (in Millions, Except Per Share Data) (Unaudited) GAAP to Non-GAAP Reconciliation - Consolidated Adjusted EPS (In millions) Year ended December 31, 2015 Acquisition, Acquisition Integration, Deferred and Sale of Purchase Revenue Severance Gaming Global Price GAAP Adjustment Costs Contracts Restructure Subtotal Amort. Non-GAAP Processing and services revenue 6,595.2 47.5 - - - 6,642.7 - 6,642.7 Cost of revenues 4,393.2 - - - - 4,393.2 (238.6) 4,154.6, Gross profit 2,202.0 47.5 - - - 2,249.5 238.6 2,488.1 Selling, general and administrative 1,102.8 - (171.3) - (44.6) 886.9 - 886.9 Operating income 1,099.2 47.5 171.3 - 44.6 1362.6 238.6 1,601.2 Other income (expense): Interest income (expense), net (183.4) - - - - (183.4) - (183.4) Other income (expense), net 121.1 - 20.1 (139.4) - 1.8 - 1.8 Total other income (expense) (62.3) - 20.1 (139.4) - (181.6) - (181.6) Earnings (loss) from continuing operations before income taxes 1,036.9 47.5 191.4 (139.4) 44.6 1,181.0 238.6 1,419.6 Provision for income taxes 378.8 17.4 62.1 (85.3) 14.6 387.6 82.3 469.9 Earnings (loss) from continuing operations, net of tax 658.1 30.1 129.3 (54.1) 30.0 793.4 156.3 949.7 Earnings (loss) from discontinued operations, net of tax (7.3) - - - - (7.3) - (7.3) Net earnings (loss) 650.8 30.1 129.3 (54.1) 30.0 786.1 156.3 942.4 Net (earnings) loss attributable to noncontrolling interest (19.3) - - - - (19.3) - (19.3) Net earnings (loss) attributable to FIS common stockholders 631.5 30.1 129.3 (54.1) 30.0 766.8 156.3 923.1 Amounts attributable to FIS common stockholders Earnings (loss) from continuing operations, net of tax 638.8 30.1 129.3 (54.1) 30.0 774.1 156.3 930.4 Earnings (loss) from discontinued operations, net of tax (7.3) - - - - (7.3) - (7.3) Net earnings (loss) attributable to FIS common stockholders 631.5 30.1 129.3 (54.1) 30.0 766.8 156.3 923.1 Net earnings (loss) per share — diluted from continuing operations attributable to FIS common stockholders* 2.21 0.10 0.45 (0.19) 0.10 2.68 0.54 3.22 Weighted average shares outstanding — diluted 288.7 288.7 288.7 288.7 288.7 288.7 288.7 288.7 Effective tax rate 37% 33% A P P E N D I X 97
Reconciliation of GAAP to Non-GAAP Financial Measures (in Millions, Except Per Share Data) (Unaudited) GAAP to Non-GAAP Reconciliation - Consolidated Adjusted EPS (In millions) Year ended December 31, 2014 Acquisition, Integration, and Purchase Severance Refinance Contract Price GAAP Costs Costs Settlement Subtotal Amort. Non-GAAP Processing and services revenue 6,413.8 - - 9.0 6,422.8 - 6,422.8 Cost of revenues 4,332.7 - - - 4,332.7 (214.9) 4,117.8 Gross profit 2,081.1 - - 9.0 2,090.1 214.9 2,305.0 Selling, general and administrative 810.5 (21.5) - - 789.0 - 789.0 Operating income 1,270.6 21.5 - 9.0 1,301.1 214.9 1,516.0 Other income (expense): Interest income (expense), net (157.5) - - - (157.5) - (157.5) Other income (expense), net (59.7) 17.4 37.5 - (4.8) - (4.8) Total other income (expense) (217.2) 17.4 37.5 - (162.3) - (162.3) Earnings (loss) from continuing operations before income taxes 1,053.4 38.9 37.5 9.0 1,138.8 214.9 1,353.7 Provision for income taxes 335.1 12.4 11.7 3.0 362.2 68.4 430.6 Earnings (loss) from continuing operations, net of tax 718.3 26.5 25.8 6.0 776.6 146.5 923.1 Earnings (loss) from discontinued operations, net of tax (11.4) - - - (11.4) - (11.4) Net earnings (loss) 706.9 26.5 25.8 6.0 765.2 146.5 911.7 Net (earnings) loss attributable to noncontrolling interest (27.8) - - - (27.8) - (27.8) Net earnings (loss) attributable to FIS common stockholders 679.1 26.5 25.8 6.0 737.4 146.5 883.9 Amounts attributable to FIS common stockholders Earnings (loss) from continuing operations, net of tax 690.5 26.5 25.8 6.0 748.8 146.5 895.3 Earnings (loss) from discontinued operations, net of tax (11.4) - - - (11.4) - (11.4) Net earnings (loss) attributable to FIS common stockholders 679.1 26.5 25.8 6.0 737.4 146.5 883.9 Net earnings (loss) per share — diluted from continuing operations attributable to FIS common stockholders* 2.39 0.09 0.09 0.02 2.59 0.51 3.10 Weighted average shares outstanding — diluted 288.7 288.7 288.7 288.7 288.7 288.7 288.7 Effective tax rate 32% 32% A P P E N D I X 98
Reconciliation of GAAP to Non-GAAP Financial Measures (in Millions, Except Per Share Data) (Unaudited) GAAP to Non-GAAP Reconciliation - Consolidated Adjusted EPS (In millions) Year ended December 31, 2013 Capco International Purchase Acquisition Refinance Restructuring Gain on Price GAAP Adjustments Costs Charges mFoundry Subtotal Amort. Non-GAAP Processing and services revenue 6,063.4 - - - - 6,063.4 - 6,063.4 Cost of revenues 4,092.7 (16.1) - - - 4,076.6 (233.1) 3,843.5 Gross profit 1,970.7 16.1 - - - 1,986.8 233.1 2,219.9 Selling, general and administrative 907.8 (131.1) - (9.1) - 767.6 - 767.6 Operating income 1,062.9 147.2 - 9.1 - 1,219.2 233.1 1,452.3 Other income (expense): Interest income (expense), net (188.2) - - - - (188.2) - (188.2) Other income (expense), net (51.2) - 60.9 - (9.2) 0.5 - 0.5 Total other income (expense) (239.4) - 60.9 - (9.2) (187.7) - (187.7) Earnings (loss) from continuing operations before income taxes 823.5 147.2 60.9 9.1 (9.2) 1,031.5 233.1 1,264.6 Provision for income taxes 308.9 4.9 18.3 3.2 (3.0) 332.3 77.6 409.9 Earnings (loss) from continuing operations, net of tax 514.6 142.3 42.6 5.9 (6.2) 699.2 155.5 854.7 Earnings (loss) from discontinued operations, net of tax 3.1 - - - - 3.1 - 3.1 Net earnings (loss) 517.7 142.3 42.6 5.9 (6.2) 702.3 155.5 857.8 Net (earnings) loss attributable to noncontrolling interest (24.6) - - - - (24.6) - (24.6) Net earnings (loss) attributable to FIS common stockholders 493.1 142.3 42.6 5.9 (6.2) 677.7 155.5 833.2 Amounts attributable to FIS common stockholders Earnings (loss) from continuing operations, net of tax 490.0 142.3 42.6 5.9 (6.2) 674.6 155.5 830.1 Earnings (loss) from discontinued operations, net of tax 3.1 - - - - 3.1 - 3.1 Net earnings (loss) attributable to FIS common stockholders 493.1 142.3 42.6 5.9 (6.2) 677.7 155.5 833.2 Net earnings (loss) per share — diluted from continuing operations attributable to FIS common stockholders* 1.67 0.48 0.14 0.02 (0.02) 2.29 0.53 2.82 Weighted average shares outstanding — diluted 294.2 294.2 294.2 294.2 294.2 294.2 294.2 294.2 Effective tax rate 38% 32% A P P E N D I X 99
Reconciliation of GAAP to Non-GAAP Financial Measures (in Millions, Except Per Share Data) (Unaudited) GAAP to Non-GAAP Reconciliation - Consolidated Adjusted EPS (In millions) Year ended December 31, 2012 Stock and Purchase Other Compensation Refinance Price GAAP Charges Costs Subtotal Amort. Non-GAAP Processing and services revenue 5,795.8 - - 5,795.8 - 5,795.8 Cost of revenues 3,956.2 - - 3,956.2 (241.3) 3,714.9 Gross profit 1,839.6 - - 1,839.6 241.3 2,080.9 Selling, general and administrative 763.3 (43.2) - 720.1 - 720.1 Operating income 1,076.3 43.2 - 1,119.5 241.3 1,360.8 Other income (expense): Interest income (expense), net (222.7) - - (222.7) - (222.7) Other income (expense), net (25.3) - 18.4 (6.9) - (6.9) Total other income (expense) (248.0) - 18.4 (229.6) - (229.6) Earnings (loss) from continuing operations before income taxes 828.3 43.2 18.4 889.9 241.3 1,131.2 Provision for income taxes 270.1 14.6 6.2 290.9 78.9 369.8 Earnings (loss) from continuing operations, net of tax 558.2 28.6 12.2 599.0 162.4 761.4 Earnings (loss) from discontinued operations, net of tax (77.1) - - (77.1) - (77.1) Net earnings (loss) 481.1 28.6 12.2 521.9 162.4 684.3 Net (earnings) loss attributable to noncontrolling interest (19.9) - - (19.9) - (19.9) Net earnings (loss) attributable to FIS common stockholders 461.2 28.6 12.2 502.0 162.4 664.4 Amounts attributable to FIS common stockholders Earnings (loss) from continuing operations, net of tax 538.3 28.6 12.2 579.1 162.4 741.5 Earnings (loss) from discontinued operations, net of tax (77.1) - - (77.1) - (77.1) Net earnings (loss) attributable to FIS common stockholders 461.2 28.6 12.2 502.0 162.4 664.4 Net earnings (loss) per share — diluted from continuing operations attributable to FIS common stockholders* 1.81 0.10 0.04 1.95 0.55 2.49 Weighted average shares outstanding — diluted 297.5 297.5 297.5 297.5 297.5 297.5 Effective tax rate 33% 33% A P P E N D I X 100
Reconciliation of GAAP to Non-GAAP Financial Measures (in Millions, Except Per Share Data) (Unaudited) GAAP to Non-GAAP Reconciliation - Consolidated Adjusted EPS (In millions) Year ended December 31, 2011 Purchase Capco Refinance Investment Price GAAP Adjustment Costs Impairment Subtotal Amort. Non-GAAP Processing and services revenue 5,616.5 - - 5,616.5 - 5,616.5 Cost of revenues 3,924.5 - - - 3,924.5 (242.6) 3,681.9 Gross profit 1,692.0 - - - 1,692.0 242.6 1,934.6 Selling, general and administrative 636.8 22.3 659.1 - 659.1 Impairment Charges 9.1 (9.1) - - - - - Operating income 1,046.1 (13.2) - - 1,032.9 242.6 1,275.5 Other income (expense): Interest income (expense), net (258.8) - - - (258.8) - (258.8) Other income (expense), net (63.7) - 38.8 34.0 9.1 - 9.1 Total other income (expense) (322.5) - 38.8 34.0 (249.7) - (249.7) Earnings (loss) from continuing operations before income taxes 723.6 (13.2) 38.8 34.0 783.2 242.6 1,025.8 Provision for income taxes 231.6 2.9 12.2 10.7 257.4 78.0 335.4 Earnings (loss) from continuing operations, net of tax 492.0 (16.1) 26.6 23.3 525.8 164.6 690.4 Earnings (loss) from discontinued operations, net of tax (10.9) - - - (10.9) - (10.9) Net earnings (loss) 481.1 (16.1) 26.6 23.3 514.9 164.6 679.5 Net (earnings) loss attributable to noncontrolling interest (11.5) - - - (11.5) - (11.5) Net earnings (loss) attributable to FIS common stockholders 469.6 (16.1) 26.6 23.3 503.4 164.6 668.0 Amounts attributable to FIS common stockholders Earnings (loss) from continuing operations, net of tax 480.5 (16.1) 26.6 23.3 514.3 164.6 678.9 Earnings (loss) from discontinued operations, net of tax (10.9) - - - (10.9) - (10.9) Net earnings (loss) attributable to FIS common stockholders 469.6 (16.1) 26.6 23.3 503.4 164.6 668.0 Net earnings (loss) per share — diluted from continuing operations attributable to FIS common stockholders* 1.57 (0.05) 0.09 0.08 1.68 0.54 2.21 Weighted average shares outstanding — diluted 307.0 307.0 307.0 307.0 307.0 307.0 307.0 Effective tax rate 32% 33% A P P E N D I X 101
Reconciliation of GAAP to Non-GAAP Financial Measures (in Millions, Except Per Share Data) (Unaudited) GAAP to Non-GAAP Reconciliation - Consolidated Adjusted EPS (In millions) Year ended December 31, 2010 M&A Acquisition Restructuring Deferred Purchase & Integration Brazilian Revenue Price GAAP Costs Venture Adjustment Subtotal Amort. Non-GAAP Processing and services revenue 5,138.9 - (83.3) 18.5 5,074.1 - 5,074.1 Cost of revenues 3,559.6 - - - 3,559.6 (252.8) 3,306.8 Gross profit 1,579.3 - (83.3) 18.5 1,514.5 252.8 1,767.3 Selling, general and administrative 641.6 (123.2) 518.4 - 518.4 Impairment Charges 154.9 - (154.9) - - - - Operating income 782.8 123.2 71.6 18.5 996.1 252.8 1,248.9 Other income (expense): Interest income (expense), net (173.4) 0.4 - - (173.0) - (173.0) Other income (expense), net (11.5) 37.0 (25.1) 0.4 - 0.4 Total other income (expense) (184.9) 37.4 (25.1) - (172.6) - (172.6) Earnings (loss) from continuing operations before income taxes 597.9 160.6 46.5 18.5 823.5 252.8 1,076.3 Provision for income taxes 208.3 56.2 17.6 6.8 288.9 89.3 378.2 Earnings (loss) from continuing operations, net of tax 389.6 104.4 28.9 11.7 534.6 163.5 698.1 Earnings (loss) from discontinued operations, net of tax (31.7) - - - (31.7) - (31.7) Net earnings (loss) 357.9 104.4 28.9 11.7 502.9 163.5 666.4 Net (earnings) loss attributable to noncontrolling interest 46.6 - (50.1) - (3.5) - (3.5) Net earnings (loss) attributable to FIS common stockholders 404.5 104.4 (21.2) 11.7 499.4 163.5 662.9 Amounts attributable to FIS common stockholders Earnings (loss) from continuing operations, net of tax 436.2 104.4 (21.2) 11.7 531.1 163.5 694.6 Earnings (loss) from discontinued operations, net of tax (31.7) - - - (31.7) - (31.7) Net earnings (loss) attributable to FIS common stockholders 404.5 104.4 (21.2) 11.7 499.4 163.5 662.9 Net earnings (loss) per share — diluted from continuing operations attributable to FIS common stockholders* 1.24 0.30 (0.06) 0.03 1.51 0.46 1.97 Weighted average shares outstanding — diluted 352.0 352.0 352.0 352.0 352.0 352.0 352.0 Effective tax rate 35% 35% A P P E N D I X 102