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 8, 2018
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)) | |
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter). | ||
Emerging growth company o | ||
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. o | ||
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 8, 2018.
These materials contain forward-looking statements under the Private Securities Litigation Reform Act of 1995, which statements involve numerous factors that may differ materially from actual results. Additional information about those factors is contained in the presentation materials and in FIS’ filings with the SEC, which are also available from the SEC, on the FIS website or from FIS Investor Relations.
The information included in Items 2.02 and 9.01 within this Current Report is 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 8, 2018 | By: | /s/ Marc M. Mayo | |
Name: | Marc M. Mayo | ||
Title: | Corporate Executive Vice President, Chief Legal Officer and Corporate Secretary | ||
EXHIBIT INDEX
Exhibit | Description | |
99.1 | ||
1
Disclosures Forward-looking Statements Our discussions today, including this presentation and any comments made by management, contain forward-looking statements within the meaning of the U.S. federal securities laws. Any statements that refer to future events or circumstances, including our future 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 1, 2018, our annual report on Form 10-K for 2017 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. 2
FIS 2018 Investor Conference STRATEGIC BUSINESS SHAREHOLDER OVERVIEW IN FOCUS VALUE Gary Norcross Bruce Lowthers Woody Woodall President & Chief Executive Officer Chief Operating Officer Chief Financial Officer Integrated Financial Solutions Marianne Brown Chief Operating Officer Global Financial Solutions 3
Why Investors Choose FIS? Market High-quality Double-digit Strong Compelling Leadership Recurring EPS Growth Cash Flow Investment Revenue Generation Thesis 4
Agenda STRATEGIC OVERVIEW FIS Today Gary Norcross President & Chief Executive Officer Our Growth Strategy 5
F I N A N C I A L RF E I V S I E T W O D A Y 2019- 2 0 2 1 O U T L O O K O U R G R O WW T H H Y S I T N R V A E T S E T G IY N F I S ? FIS Today Recognized market leadership in key geographies across the globe 53K+ EMPLOYEES 20K+ CLIENTS FIS #1 100+ COUNTRIES Industry-leading Solutions 6
F I N A N C I A L RF E I V S I E T W O D A Y 2019- 2 0 2 1 O U T L O O K O U R G R O WW T H H Y S I T N R V A E T S E T G IY N F I S ? Why Investors Choose FIS? Performance driven by growth and scale INCREASED REVENUE EXCEPTIONAL EBITDA CONSISTENT DOUBLE- ROBUST FREE CASH AND SCALE MARGIN EXPANSION DIGIT EPS GROWTH FLOW $2.2 660 18% $1.0 BILLION BPS CAGR BILLION $8.5 $1.9 36.5% $5.24 29.9% $6.3 $3.19 $0.9 2015 2018 Guidance 2015 2018 Guidance 2015 2018 Guidance 2015 2018 Guidance *Metrics adjusted for impact of ASC 606 as disclosed in 8-K published 3/6/2018. 2018 reflects mid-point guidance attainment. Refer to www.investor.fisglobal.com or the appendix attached to this presentation for a description and reconciliation of GAAP to non-GAAP items 7
F I N A N C I A L RF E I V S I E T W O D A Y 2019- 2 0 2 1 O U T L O O K O U R G R O WW T H H Y S I T N R V A E T S E T G IY N F I S ? FIS Today Delivering compelling shareholder value 5-Year Return(1) FIS Returns* 1YR 3YR 10YR 86% 2012 2013 2014 2015 2016 2017 FIS S&P 500 *Trailing 12, 36 and 120 month returns as of March 31, 2018. 8 (1) 12/31/12 – 5/1/18 Total Shareholder Return
Agenda STRATEGIC OVERVIEW FIS Today Gary Norcross President & Chief Executive Officer Our Growth Strategy 9
F I N A N C I A L RF E I V S I E T W O D A Y 2019- 2 0 2 1 O U T L O O K O U R G R O WW T H H Y S I T N R V A E T S E T G IY N F I S ? Our Growth Strategy Consistent and effective BASE BUSINESS UNLOCK VALUE INORGANIC Effectively cross sell, deliver Strategic investment to expand Continue to strategically add or and service new solutions and leverage solution portfolio, subtract solution sets and into existing clients create new white space markets served EXECUTION INNOVATION ACQUIRE & DIVEST FINANCIAL DISCIPLINE Focus on strong balance sheet, strengthen cash flow and returning cash to shareholders 10
F I N A N C I A L RF E I V S I E T W O D A Y 2019- 2 0 2 1 O U T L O O K O U R G R O WW T H H Y S I T N R V A E T S E T G IY N F I S ? Base Business Execution Market focus brings FIS’ scale to three growing markets 2018 global financial technology spend ~$300B1 Forward three-year (2017-2020) CAGR 5%1 BANKING PAYMENTS CAPITAL MARKETS Key areas of growth include digital, data analytics, and cybersecurity (1) IDC Worldwide IT Spending guides - October 2017 11
F I N A N C I A L RF E I V S I E T W O D A Y 2019- 2 0 2 1 O U T L O O K O U R G R O WW T H H Y S I T N R V A E T S E T G IY N F I S ? Base Business Execution Mission-critical solutions delivered at scale DIGITAL ACCOUNT MOVEMENT OF OPERATIONS ENABLEMENT PROCESSING MONEY / ASSETS EXCELLENCE 35B+ 80M+ 21 150+ Transactions Loans Real-time Payment Global Trading Processed Serviced Enabled Countries Venues 286M+ $8.4T+ $31T+ Active Payments Fund Accounting Accounts Volume Assets 12
F I N A N C I A L RF E I V S I E T W O D A Y 2019- 2 0 2 1 O U T L O O K O U R G R O WW T H H Y S I T N R V A E T S E T G IY N F I S ? Base Business Execution Driving revenue, operational and margin efficiencies People Technology Tools & Optimized Returns Infrastructure Processes • Best-in-class talent • Speed to market • Consistency of process • Global reach • Capital optimization 13
F I N A N C I A L RF E I V S I E T W O D A Y 2019- 2 0 2 1 O U T L O O K O U R G R O WW T H H Y S I T N R V A E T S E T G IY N F I S ? Unlocking Value with Innovation Modernization and innovation strategy CapEx % of Adjusted Revenue Research and Development Investing capital to fuel future organic 7.1% growth 6.6% 6.8% Venture Investing Multi-round funding to invest ahead of demand and bring new solutions to early- adopter clients FinTech Accelerator By investing in and guiding FinTech start- ups, we increase innovation possibilities for our clients. 2015 2016 2017 2021 *Metrics adjusted for impact of ASC 606 as disclosed in 8-K published 3/6/2018. Refer to www.investor.fisglobal.com or the appendix attached to this presentation for a description and reconciliation of GAAP to non-GAAP items 14
F I N A N C I A L RF E I V S I E T W O D A Y 2019- 2 0 2 1 O U T L O O K O U R G R O WW T H H Y S I T N R V A E T S E T G IY N F I S ? Unlocking Value with Innovation Our investment strategy is guided by modern design principles Component-based Cloud Ready Unified Client Open API Experience LEVERAGE & SECURE INTEGRATED OUTCOMES: RE-USE FRAMEWORK SOLUTIONS & SERVICES 15
F I N A N C I A L RF E I V S I E T W O D A Y 2019- 2 0 2 1 O U T L O O K O U R G R O WW T H H Y S I T N R V A E T S E T G IY N F I S ? Unlocking Value with Innovation FIS is investing in areas of high demand and return Core Code Digital Unified Next Gen Cloud Banking Connect One Payments Trading Infrastructure DEVELOPING THE NEXT GENERATION OF ADVANCED INDUSTRY PLATFORMS 16
F I N A N C I A L RF E I V S I E T W O D A Y 2019- 2 0 2 1 O U T L O O K O U R G R O WW T H H Y S I T N R V A E T S E T G IY N F I S ? Market Transformation Change has been a consistent theme 1968 1990 2003 2006 2018 FUTURE 1970s 1980s • Mainframe • Software • Mainframe as • Internet & eCommerce • 2008 market crash • Open architecture FINTECH computing data/record • Online broker website FINTECH INDUSTRY • Electronic • Smartphone/mobile • Digital banking keeping FUTURE HIGHLIGHTS • ATMs trading • Online banking • V1 of cryptocurrency • APIs, cloud • Chips • Google wallet • AI/analytics • Nasdaq • “Smile-to-Pay” • Digital advisor payments 17
F I N A N C I A L RF E I V S I E T W O D A Y 2019- 2 0 2 1 O U T L O O K O U R G R O WW T H H Y S I T N R V A E T S E T G IY N F I S ? Growing via Strategic Acquisition Proven track record of delivering value Align with Market Focus Deliver Shareholder Value • Financial services focused • Logical adjacency to ✔ or enhancing of existing market position: ✔ ✓ New solutions to extend to existing clients ✔ ✓ New clients and/or enhanced relationships ✔ ✓ Creates additional scale 18
F I N A N C I A L RF E I V S I E T W O D A Y 2019- 2 0 2 1 O U T L O O K O U R G R O WW T H H Y S I T N R V A E T S E T G IY N F I S ? Growing via Strategic Divestiture Proven track record of delivering value Q1 2017 Q3 2017 Q1 2018 Kingstar Targeted divestitures creating greater focus M A R K E T S O L U T I O N G E O G R A P H Y for re-investment 19
F I S T O D A Y O U R G R O W T H S T R A T E G Y In Closing: Strategic Execution Yielding Results 1 2 3 4 Focused Investing and Predictable Confidence in Plan Modernizing Performance Outlook CONSISTENT, PREDICTABLE SHAREHOLDER VALUE 20
Segment Leadership Co-chief operating officers with 55+ years of combined experience BRUCE MARIANNE LOWTHERS BROWN Chief Operating Officer, Chief Operating Officer, Integrated Financial Solutions Global Financial Solutions Market Focus • Continuous Modernization • Optimizing Results 21
Agenda MARKETS IN FOCUS Bruce Lowthers Chief Operating Officer, Integrated Financial Solutions 22
I F S M A R K E T F O C U S M O D E R N I Z A T I O N O P T I M I Z E D R E T U R N S Integrated Financial Solutions Positioned for continued growth ~$4.3B ~90% ~44% 2017 REVENUES RECURRING EBITDA MARGIN REVENUES CONTRIBUTED Predictable Revenue Base Improved Client Demand 286M+ 35B+ $8.4T+ Differentiated Solutions ACTIVE TRANSACTIONS PAYMENTS ACCOUNTS PROCESSED VOLUME Operational Leverage Banking & Wealth • Payments • Corporate & Digital VALUE CREATING BUSINESS MODEL WITH SCALE *Metrics adjusted for impact of ASC 606 as disclosed in 8-K published 3/6/2018. Refer to www.investor.fisglobal.com or the appendix attached to this presentation for a description and reconciliation of GAAP to non-GAAP items 23
I F S M A R K E T F O C U S M O D E R N I Z A T I O N O P T I M I Z E D R E T U R N S Current Dynamics and Demand CLIENT DYNAMICS CLIENT PRIORITIES CLIENT NEEDS New Competition Consumer Expectations Core Modernization Changing Buyer Needs Digital Transformation Finding New Efficiencies Unified Payments Navigating Risk and Legacy Infrastructure Data and AI Cybersecurity Risk and Compliance Complex Regulatory Speed to Market Environment ACCELERATING PACE OF CHANGE DRIVING DEMAND AND SPEND 24
I F S M A R K E T F O C U S M O D E R N I Z A T I O N O P T I M I Z E D R E T U R N S In the Next Five Years Our Clients’ Needs Will Be Dramatically Different INDUSTRY DIRECTION FIS TRANSFORMING CUSTOMER BENEFITS • Moving to social banking • Modernized platforms and solutions • Moving to cloud services for • Plug and go integration operational health • Secure cloud enabled • Better user experience • Solutions deployed by mass • Reduce sales & implementation enablement time • Acceleration of product to market • Self-help services • On-demand enabled DRIVING THE NEXT GENERATION OF ADVANCED INDUSTRY SOLUTIONS 25
I F S M A R K E T F O C U S M O D E R N I Z A T I O N O P T I M I Z E D R E T U R N S FIS Is Investing in Areas of High Demand and Return CONTINUOUS INNOVATION ONE TO MANY INTEGRATED MULTI-CHANNEL DELIVERY Banking Payments Digital APIs Componentization Unified view Human-centered design Speed to market Real-time insights Omnichannel interface Self service High-value user experience Open & flexible Modular Omnichannel Open interface & integration DRIVING CURRENT AND FUTURE GROWTH 26
I F S M A R K E T F O C U S M O D E R N I Z A T I O N O P T I M I Z E D R E T U R N S Innovating Financial Solutions to Improve People’s Lives Mass Enablement Leveraging Existing Products of Functionality into New Solutions SPEED TO MARKET INTUITIVE DIGITAL EXPERIENCES BANKING & PAYMENTS MEET LIFE 27
I F S M A R K E T F O C U S M O D E R N I Z A T I O N O P T I M I Z E D R E T U R N S Positioned to Accelerate Growth and Expand Margins Sales Transformation Service Delivery Investment Discipline Mass enablement Utilization of technology Align investment to strategic growth areas Align assets to whitespace Targeted process improvement Accountability to Self help and elimination of redundancy expected returns PROCESS IMPROVEMENT TO FUEL INVESTMENTS AND MARGIN EXPANSION 28
I F S M A R K E T F O C U S M O D E R N I Z A T I O N O P T I M I Z E D R E T U R N S Integrated Financial Solutions Positioned for Growth Long-term Growth Solution Modernization Pipeline of innovative new products Retain and Cross Sell Retain and deepen client relationships Mass enablement and aligning Sales Transformation assets into whitespace Delivery at Scale One-to-many model Targeted Process Optimization Driving efficiency and consistency Investment Discipline Spend and investment accountability Margin Expansion 29
I F S M A R K E T F O C U S M O D E R N I Z A T I O N O P T I M I Z E D R E T U R N S Positioned for Growth Predictable Improved Differentiated Operational Revenue Base Market Demand Solutions Leverage ~90% recurring revenue Prioritized investment spend Modernization of all legacy ~44% EBITDA margins in high-growth areas platforms & digital channels Significant backlog One to many; Investments and integration in leverage & scale Manageable growth walk emerging areas *Metrics adjusted for impact of ASC 606 as disclosed in 8-K published 3/6/2018. Refer to www.investor.fisglobal.com or the appendix attached to this presentation for a description and reconciliation of GAAP to non-GAAP items 30
Agenda MARKETS IN FOCUS Marianne Brown Chief Operating Officer, Global Financial Solutions 31
G F S M A R K E T F O C U S M O D E R N I Z A T I O N O P T I M I Z E D R E T U R N S Global Financial Solutions Segment characteristics • Focus on global marketplace • Differentiated presence in Tier 1 and Tier 2 institutions • Leveraged sales force • Higher growth profile with margin expansion MARKETS SERVED Retail & Commercial Banks | Investment Banks | Asset Managers | Hedge Funds Private Equity | Broker Dealers | Corporates 32
G F S M A R K E T F O C U S M O D E R N I Z A T I O N O P T I M I Z E D R E T U R N S Global Financial Solutions Positioned for continued growth MISSION CRITICAL applications ~$4.1B 2017 REVENUES GLOBAL SIGNIFICANTLY IMPROVED revenue quality MARKETS Driving Higher Growth Scale driven by STRATEGIC INVESTMENTS ~70% ~33% Continued evolution to LIFECYCLE solutions RECURRING EBITDA MARGIN REVENUES CONTRIBUTED GLOBAL SALES FORCE leverage Institutional & Wholesale • Banking • Payments *Metrics adjusted for impact of ASC 606 as disclosed in 8-K published 3/6/2018. Refer to www.investor.fisglobal.com or the appendix attached to this presentation for a description and reconciliation of GAAP to non-GAAP items 33
G F S M A R K E T F O C U S M O D E R N I Z A T I O N O P T I M I Z E D R E T U R N S Capabilities Across Global Verticals 31T+ Fund Accounting Assets Institutional & Wholesale 150+ Global Trading Venues Investment / Investor Accounting Risk and Compliance Multi-Asset Trading / Data Securities Processing Suite 34
G F S M A R K E T F O C U S M O D E R N I Z A T I O N O P T I M I Z E D R E T U R N S Capabilities across Global Verticals 31T+ Fund Accounting Assets Institutional Banking & Wholesale 150+ Global Trading Venues Investment/Investor Accounting Core Bank Processing Risk and Compliance Digital Enablement 80M+ Loans Serviced Multi-Asset Trading/Data Lending Securities Processing Suite 35
G F S M A R K E T F O C U S M O D E R N I Z A T I O N O P T I M I Z E D R E T U R N S Capabilities across Global Verticals 31T+ Fund Accounting Assets Institutional Banking Payments & Wholesale 150+ Global Trading Venues Investment/Investor Accounting Core Bank Processing Real-Time/Immediate Risk and Compliance Digital Enablement Switch, Testing and 80M+ Loans Serviced Multi-asset Trading/Data Lending Chargeback Securities Processing Suite Credit/Debit/Prepaid 21 Real-time Payment Enabled Countries INNOVATION ACCELERATORS 36
G F S M A R K E T F O C U S M O D E R N I Z A T I O N O P T I M I Z E D R E T U R N S Current Dynamics and Demand CLIENT DYNAMICS Ongoing regulation Buy vs. build evolution Vendor consolidation Information security and risk management 37
G F S M A R K E T F O C U S M O D E R N I Z A T I O N O P T I M I Z E D R E T U R N S Current Dynamics and Demand CLIENT DYNAMICS SPEND DRIVERS Ongoing regulation Reducing technology debt Buy vs. build evolution Corporate profits and tax reform Vendor consolidation CapEx demands vs. ability to invest in OpEx Information security and risk management 38
G F S M A R K E T F O C U S M O D E R N I Z A T I O N O P T I M I Z E D R E T U R N S Current Dynamics and Demand CLIENT DYNAMICS SPEND DRIVERS CLIENT CHALLENGES Ongoing regulation Reducing technology debt Navigating risk and regulatory demands Buy vs. build evolution Corporate profits Driving efficiency and and tax reform lowering cost of ownership Vendor consolidation Modernizing processes CapEx demands vs. ability and services to invest in OpEx Information security and Delivering innovative risk management client experiences 39
G F S M A R K E T F O C U S M O D E R N I Z A T I O N O P T I M I Z E D R E T U R N S Demand Fueling Innovation Multi-asset Class Front-to-back solutions offering cross-asset capabilities, ✔ 1 enabling growth and rationalized technology SOLUTION SOLUTION EXPANSION 40
G F S M A R K E T F O C U S M O D E R N I Z A T I O N O P T I M I Z E D R E T U R N S Demand Fueling Innovation Multi-asset Class Front-to-back solutions offering cross-asset capabilities, ✔ 1 enabling growth and rationalized technology Lifecycle Solutions Holistic, “out-of-the-box” offerings leveraging thought ✔ and Simplified Deployment 2 leadership, delivering faster time to market SOLUTION SOLUTION EXPANSION 41
G F S M A R K E T F O C U S M O D E R N I Z A T I O N O P T I M I Z E D R E T U R N S Demand Fueling Innovation Multi-asset Class Front-to-back solutions offering cross-asset capabilities, ✔ 1 enabling growth and rationalized technology Lifecycle Solutions Holistic, “out-of-the-box” offerings leveraging thought ✔ and Simplified Deployment 2 leadership, delivering faster time to market Innovation gateway enabling new distribution channels and ✔ Open APIs/Code Connect 3 improved customer experiences SOLUTION SOLUTION EXPANSION 42
G F S M A R K E T F O C U S M O D E R N I Z A T I O N O P T I M I Z E D R E T U R N S Demand Fueling Innovation Multi-asset Class Front-to-back solutions offering cross-asset capabilities, ✔ 1 enabling growth and rationalized technology Lifecycle Solutions Holistic, “out-of-the-box” offerings leveraging thought ✔ and Simplified Deployment 2 leadership, delivering faster time to market Innovation gateway enabling new distribution channels and ✔ Open APIs/Code Connect 3 improved customer experiences End to end real-time ready, enabling seamless payments ✔ Payments-as-a-Service 4 leveraging an open API layer SOLUTION SOLUTION EXPANSION 43
G F S M A R K E T F O C U S M O D E R N I Z A T I O N O P T I M I Z E D R E T U R N S Demand Fueling Innovation Multi-asset Class Front-to-back solutions offering cross-asset capabilities, ✔ 1 enabling growth and rationalized technology Lifecycle Solutions Holistic, “out-of-the-box” offerings leveraging thought ✔ and Simplified Deployment 2 leadership, delivering faster time to market Innovation gateway enabling new distribution channels and ✔ Open APIs/Code Connect 3 improved customer experiences End to end real-time ready, enabling seamless payments ✔ Payments-as-a-Service 4 leveraging an open API layer SOLUTION SOLUTION EXPANSION Modernizing platforms, delivering innovative and Next Gen Core Banking 5 customized experiences driving client adoption and ✔ retention 44
G F S M A R K E T F O C U S M O D E R N I Z A T I O N O P T I M I Z E D R E T U R N S Client Success Stories HOLISTIC ENTERPRISE SOLUTIONS 45
G F S M A R K E T F O C U S M O D E R N I Z A T I O N O P T I M I Z E D R E T U R N S Client Success Stories HOLISTIC ENTERPRISE SOLUTIONS “FUTURE PROOF” TO DRIVE GROWTH 46
G F S M A R K E T F O C U S M O D E R N I Z A T I O N O P T I M I Z E D R E T U R N S Client Success Stories HOLISTIC ENTERPRISE SOLUTIONS “FUTURE PROOF” TO DRIVE GROWTH RE-IMAGINED CLIENT EXPERIENCES EMPOWERING THE FINANCIAL WORLD 47
G F S M A R K E T F O C U S M O D E R N I Z A T I O N O P T I M I Z E D R E T U R N S Positioned for Growth with Margin Expansion Long-term Growth Go-to-market Enhancements Enhance service offerings and simplify deployment Sales Productivity Optimize top talent with great sales tools/processes Continuous Innovation Drive improved client outcomes Leveraged Services Reduce cost of delivery Continuous Process Improvement Drive efficiency and improve quality Investment Discipline Acute focus on strategic investments and ROI Margin Expansion 48
G F S M A R K E T F O C U S M O D E R N I Z A T I O N O P T I M I Z E D R E T U R N S Positioned for Growth Predictable Alignment with Differentiated Operational Revenue Base Market Demand Solutions Leverage Large addressable market Focused portfolio Modernization journey Operational excellence Well established in key Leveraging investment “Voice of client” driven Margin expansion upside geographies across geographies 49
Agenda SHAREHOLDER Financial Review VALUE Woody Woodall Chief Financial Officer 2019 - 2021 Outlook Why Invest in FIS? 50
Agenda SHAREHOLDER Financial Review VALUE Woody Woodall Chief Financial Officer 2019 - 2021 Outlook Why Invest in FIS? 51
F I N A N C I A L R E V I E W 2019- 2 0 2 1 O U T L O O K W H Y I N V E S T I N F I S ? Strong, Value-creating Business Model High-quality Expanding Revenue Margins Strong Cash Sustainable Generation EPS Growth 52
F I N A N C I A L R E V I E W 2019- 2 0 2 1 O U T L O O K W H Y I N V E S T I N F I S ? 2017 Highlights $8.7B +280 bps ~16% ~110% Adjusted EBITDA Margin Adjusted EPS Cash Flow Revenue Expansion Growth Conversion CONSISTENT FINANCIAL PERFORMANCE DRIVES PREDICTABLE AND LONG-TERM SHAREHOLDER RETURNS *Metrics adjusted for impact of ASC 606 as disclosed in 8-K published 3/6/2018. Refer to www.investor.fisglobal.com or the appendix attached to this presentation for a description and reconciliation of GAAP to non-GAAP items 53
F I N A N C I A L R E V I E W 2019- 2 0 2 1 O U T L O O K W H Y I N V E S T I N F I S ? Attractive Fundamentals 1 2 3 4 5 Strengthened Increased IP- Continued margin Exceeded 2018 Achieved portfolio with driven revenue expansion and adjusted EPS leverage goals, focused and effective working capital guidance from creating flexibility divestitures ongoing cost focus 2016 Investor Day for accretive uses management of excess cash flow Refer to www.investor.fisglobal.com or the appendix attached to this presentation for a description and reconciliation of GAAP to non-GAAP items 54
F I N A N C I A L R E V I E W 2019- 2 0 2 1 O U T L O O K W H Y I N V E S T I N F I S ? Operating Segments – IFS ~$4.3B •Predictable and low risk top- 2017 REVENUES ONE-TO- line growth trajectory MANY Driving Higher •Highly scalable operating Incremental Margins model continues to drive margin expansion ~90% ~44% RECURRING EBITDA MARGIN REVENUES CONTRIBUTED •Operational effectiveness and modernization provides long-term growth *Metrics adjusted for impact of ASC 606 as disclosed in 8-K published 3/6/2018. Refer to www.investor.fisglobal.com or the appendix attached to this presentation for a description and reconciliation of GAAP to non-GAAP items 55
F I N A N C I A L R E V I E W 2019- 2 0 2 1 O U T L O O K W H Y I N V E S T I N F I S ? Operating Segments – GFS ~$4.1B •Global scale provides 2017 REVENUES GLOBAL differentiated market MARKETS opportunity Driving Higher Growth •Exceptional margin expansion and operational ~70% ~33% rationalization RECURRING EBITDA MARGIN REVENUES CONTRIBUTED •Ongoing shift to recurring revenue model *Metrics adjusted for impact of ASC 606 as disclosed in 8-K published 3/6/2018. Refer to www.investor.fisglobal.com or the appendix attached to this presentation for a description and reconciliation of GAAP to non-GAAP items 56
F I N A N C I A L R E V I E W 2019- 2 0 2 1 O U T L O O K W H Y I N V E S T I N F I S ? Exceptional EBITDA Margin Expansion KEY DRIVERS 36% - 37% 1 Higher margin IP-centric 660 bps revenue composition 2015 - 2018 34.4% Benefits of data center 2 consolidation program 31.6% 29.9% 3 Acquisition integration and focused divestitures 4 On-going cost management initiatives 2015 2016 2017 2018 Guidance *Metrics adjusted for impact of ASC 606 as disclosed in 8-K published 3/6/2018. 660 bps margin expansion reflects mid-point guidance attainment. Refer to www.investor.fisglobal.com or the appendix attached to this presentation for a description and reconciliation of GAAP to non-GAAP items 57
F I N A N C I A L R E V I E W 2019- 2 0 2 1 O U T L O O K W H Y I N V E S T I N F I S ? Premium Free Cash Flow Conversion NEARLY ~22% KEY DRIVERS DOUBLING EBITDA margin Cash Flow as a Percentage 1 expansion of Revenue 18% 17% Focused portfolio with 2 higher cash generating 14% assets Continued focus on working 3 capital management 2015 2016 2017 2018 Guidance *Metrics adjusted for impact of ASC 606 as disclosed in 8-K published 3/6/2018. 22% cash flow percentage of revenue reflective of 2018 guidance attainment. Refer to www.investor.fisglobal.com or the appendix attached to this presentation for a description and reconciliation of GAAP to non-GAAP items 58
F I N A N C I A L R E V I E W 2019- 2 0 2 1 O U T L O O K W H Y I N V E S T I N F I S ? Strong Balance Sheet 3.3% $11.4 2.8X Weighted Average $10.5 Interest Rate 2017 Leverage $8.8 Ratio 6 Years Weighted Average Maturity $4.8 $5.1 $4.4 $4.5 ~95% Percentage of Fixed Rate Debt 2011 2012 2013 2014 2015 2016 2017 Total Debt Leverage Ratio Refer to www.investor.fisglobal.com or the appendix attached to this presentation for a description and reconciliation of GAAP to non-GAAP items 59
F I N A N C I A L R E V I E W 2019- 2 0 2 1 O U T L O O K W H Y I N V E S T I N F I S ? 2016 Investor Day Report Card ✔ ✔ ✔ 2% - 3% 13% - 18% ✔ ~2% ~6% ✔ 3% - 7% Organic Revenue Margin Expansion Debt Paydown Effective Tax Rate Adjusted EPS Growth (BAU + Synergies) Reduction Growth Refer to www.investor.fisglobal.com or the appendix attached to this presentation for a description and reconciliation of GAAP to non-GAAP items 60
F I N A N C I A L R E V I E W 2019- 2 0 2 1 O U T L O O K W H Y I N V E S T I N F I S ? Previous Investor Day 2018 EPS outlook vs. 2018 guidance LOW ESTIMATE HIGH ESTIMATE 2016 Investor Day EPS Outlook $4.70 $5.10 2018 EPS Guidance $5.14 $5.34 Outperformed Our Original Outlook Refer to www.investor.fisglobal.com or the appendix attached to this presentation for a description and reconciliation of GAAP to non-GAAP items 61
Agenda SHAREHOLDER Financial Review VALUE Woody Woodall Chief Financial Officer 2019 - 2021 Outlook Why Invest in FIS? 62
F I N A N C I A L R E V I E W 2019- 2 0 2 1 O U T L O O K W H Y I N V E S T I N F I S ? Improving Organic Revenue Growth Predictable Improving Market Differentiated Revenue Base Spend Solutions Recurring revenue tied to Improving sentiment Innovation and integration long-term contracts with in markets served solution suites significant backlog Well positioned in Increasing development Strategically focused portfolio high-growth markets investment across operating segments 63
F I N A N C I A L R E V I E W 2019- 2 0 2 1 O U T L O O K W H Y I N V E S T I N F I S ? Strong Margin Expansion Operational Data Center Enterprise Leverage Consolidation Excellence High incremental margins Modernizing networks Efficiencies through process automation Global delivery platform Reducing overall geographic footprint Continuous and effective cost management 64
F I N A N C I A L R E V I E W 2019- 2 0 2 1 O U T L O O K W H Y I N V E S T I N F I S ? Data Center Consolidation Update 53 ~$250M Annual <15 Savings Strategic Data Centers ~$250 million Target $ of Annual Run-Rate Cost Reduction >$700 million $100 Total Projected Savings over <15 the Life of the Program 2015 2016 2017 2018e 2019e 2020e 2021e # of Data Centers Run-Rate Annual Savings ($ millions) 65
F I N A N C I A L R E V I E W 2019- 2 0 2 1 O U T L O O K W H Y I N V E S T I N F I S ? Capital Allocation Principles Investing for Return Capital Value Creating Organic Growth to Shareholders M&A Consistent and Proven Capital Allocation Framework 66
F I N A N C I A L R E V I E W 2019- 2 0 2 1 O U T L O O K W H Y I N V E S T I N F I S ? Proven M&A Strategy 1 2 Strategic Rationale Targeted Financial Measures Accelerate cross-sell and up-sell Attractive risk-adjusted returns opportunities into existing client base Identifiable and actionable Expand market opportunities and synergy opportunities gain additional operational scale Accelerates Shareholder Returns 67
F I N A N C I A L R E V I E W 2019- 2 0 2 1 O U T L O O K W H Y I N V E S T I N F I S ? 2019 - 2021 Consolidated Outlook IMPROVING ORGANIC REVENUE GROWTH STRONG MARGIN ~4% +75-125bps 10%-13% EXPANSION Organic Revenue Adj. EBITDA Margin Adj. Earnings Growth Expansion Per Share Growth DOUBLE-DIGIT EPS GROWTH 2021 Projected EPS of $7.00 - $7.50 *Metrics reflect annual growth. Assumes no acquisitions or divestitures. Refer to www.investor.fisglobal.com or the appendix attached to this presentation for a description and reconciliation of GAAP to non-GAAP items 68
Agenda SHAREHOLDER Financial Review VALUE Woody Woodall Chief Financial Officer 2019 - 2021 Outlook Why Invest in FIS? 69
F I N A N C I A L R E V I E W 2019- 2 0 2 1 O U T L O O K W H Y I N V E S T I N F I S ? Very Attractive Returns Annualized Total Shareholder Returns of FIS* 1 Year 5 Year 10 Year 23% 21% 18% S&P 500 2012 2013 2014 2015 2016 2017 FIS S&P 500 *Annualized 1, 5, and 10 year total shareholder returns as of March 31, 2018. 70
F I N A N C I A L R E V I E W 2019- 2 0 2 1 O U T L O O K W H Y I N V E S T I N F I S ? The Formula Works Market High-quality Double-digit Strong Compelling Leadership Recurring EPS Growth Cash Flow Investment Revenue Generation Thesis 71
F I N A N C I A L R E V I E W 2019- 2 0 2 1 O U T L O O K W H Y I N V E S T I N F I S ? The Formula Works Market High-quality Double-digit Strong Compelling Leadership Recurring EPS Growth Cash Flow Investment Revenue Generation Thesis Q&A Session 72
APPENDIX 73
A P P E N D I X 2019 – 2021 Segment Outlook: Organic Growth METRICS 2019 – 2021 Outlook (Annual) Integrated Financial Solutions (IFS) 3.0% - 4.0% Organic Revenue Growth Global Financial Solutions (GFS) 4.0% - 5.0% Organic Revenue Growth 74
A P P E N D I X Forward-Looking Statements This presentation and today’s webcast contain “forward-looking statements” within the meaning of the U.S. federal securities laws. Statements that are not historical facts, including statements about anticipated financial outcomes, including any earnings 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, beliefs, 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, changes in either or both the United States and international lending, capital and financial markets, and currency fluctuations; •the effect of legislative initiatives or proposals, statutory changes, governmental or other applicable regulations and/or changes in industry requirements, including privacy and cybersecurity laws and regulations; •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; 75
A P P E N D I X Forward-Looking Statements •changes in the growth rates of the markets for our solutions; •failures to adapt our solutions to changes in technology or in the marketplace; •internal or external security breaches of our systems, including those relating to unauthorized access, theft, 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 the decreasing number of community banks in the U.S., the development of new disruptive technologies competing with one or more of our solutions, increasing presence of international competitors in the U.S. market and the entry into the market by global banks and global companies with respect to certain competitive solutions, each of which may have the impact of unbundling individual solutions from a comprehensive suite of solutions we provide to many of our customers; •the failure to innovate in order to keep up with new emerging technologies, which could impact our solutions and our 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, 2017 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. 76
A P P E N D I X Non-GAAP Financial Information and Reconciliation Generally Accepted Accounting Principles (GAAP) is the term used to refer to the standard framework of guidelines for financial accounting in the United States. GAAP includes the standards, conventions, and rules accountants follow in recording and summarizing transactions and in the preparation of financial statements. In addition to reporting financial results in accordance with GAAP, we have provided certain non-GAAP financial measures. These non-GAAP measures include adjusted revenue, constant currency revenue, organic revenue increase/decrease, EBITDA, adjusted EBITDA, adjusted EBITDA margin, adjusted net earnings (including per share amounts), adjusted cash flow from operations and free cash flow. These non-GAAP measures may be used in this release and/or in the attached supplemental financial information. We believe these non-GAAP measures help investors better understand the underlying fundamentals of our business. As further described below, the non-GAAP revenue and earnings measures presented eliminate items management believes are not indicative of FIS’s core operating performance. The constant currency and organic revenue increase/decrease measures adjust for the effects of exchange rate fluctuations, while organic revenue increase/decrease also adjusts for acquisitions and divestitures, giving investors further insight into our core performance. Finally, the non-GAAP cash flow measures provide further information about the ability of our business to generate cash. For these reasons, management also uses these non-GAAP measures in its assessment and management of FIS’ performance. 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. 77
A P P E N D I X Definitions of Non-GAAP Financial Measures Adjusted revenue consists of revenue, increased to reverse the purchase accounting deferred revenue adjustment made upon the acquisition of SunGard. The deferred revenue adjustment represents revenue that would have been recognized in the normal course of business by SunGard under GAAP but was not recognized due to GAAP purchase accounting adjustments. The deferred revenue adjustment in purchase accounting was made entirely in the Corporate and Other segment; reported GAAP results for the IFS and GFS segments are not affected by this adjustment and, therefore, no adjusted revenue is presented for these segments. Constant currency revenue represents (i) adjusted revenue, as defined above, in respect of the consolidated results and the corporate and other segment and (ii) reported revenue in respect of the IFS and GFS segments, in each case excluding the impact of fluctuations in foreign currency exchange rates in the current period. Organic revenue increase/decrease is constant currency revenue, as defined above, for the current period compared to an adjusted revenue base for the prior period, which is further adjusted to add pre-acquisition revenue of acquired businesses for a portion of the prior year matching the portion of the current year for which the business was owned, and subtract pre-divestiture revenue for divested businesses for the portion of the prior year matching the portion of the current year for which the business was not owned, for any acquisitions or divestitures by FIS. EBITDA reflects earnings from continuing operations before interest, taxes, depreciation and amortization. Adjusted EBITDA is EBITDA, as defined above, excluding certain costs and other transactions which management deems non-operational in nature, the removal of which improves comparability of operating results across reporting periods. This measure is reported to the chief operating decision maker for purposes of making decisions about allocating resources to the segments and assessing their performance. For this reason, adjusted EBITDA, as it relates to our segments, is presented in conformity with Accounting Standards Codification 280, Segment Reporting, and is excluded from the definition of non-GAAP financial measures under the Securities and Exchange Commission's Regulation G and Item 10(e) of Regulation S-K. 78
A P P E N D I X Definitions of Non-GAAP Financial Measures Adjusted EBITDA margin reflects adjusted EBITDA divided by adjusted revenue. Adjusted net earnings excludes the impact of certain costs and other transactions which management deems non-operational in nature, the removal of which improves comparability of operating results across reporting periods. It also excludes the 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-operational 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. 79
A P P E N D I X Reconciliation of GAAP to Non-GAAP Financial Measures ($ Millions) Years ended December 31, 2017 2016 2015 Processing and services revenue $ 9,123 $ 9,241 $ 6,596 Non-GAAP adjustments: Acquisition deferred revenue adjustment 7 192 48 Adjusted revenue $ 9,130 $ 9,433 $ 6,644 Topic 606 adjustments (455) (410) (336) Recast adjusted revenue $ 8,675 $ 9,023 $ 6,308 Historical SunGard revenue, as adjusted 2,489 Adjusted combined revenue $ 8,797 80
A P P E N D I X Reconciliation of GAAP to Non-GAAP Financial Measures ($ Millions) Years ended December 31, 2017 2016 2015 Net earnings from continuing operations attributable to FIS $ 1,261 $ 524 $ 631 Provision (benefit) for income taxes (321) 291 375 Equity method investment earnings 3 - - Interest expense, net 337 383 183 Other (gain/income) loss/expense, net 152 31 (102) Operating income $ 1,432 $ 1,229 $ 1,087 FIS depreciation and amortization from continuing operations, 636 568 418 excluding purchase accounting amortization FIS non-GAAP adjustments: Purchase accounting amortization 731 585 238 Acquisition, integration and severance 178 281 171 Acquisition deferred revenue adjustment 7 192 48 Global restructure - - 45 Adjusted EBITDA $ 2,984 $ 2,855 $ 2,007 Historical SunGard operating income, as adjusted 488 Historical SunGard depreciation and amortization from 132 continuing operations, as adjusted Adjusted combined EBITDA $ 2,627 81
A P P E N D I X Reconciliation of GAAP to Non-GAAP Financial Measures ($ Millions, except per share data) Years ended December 31, 2017 2016 2015 Earnings from continuing operations before income taxes and equity method investment earnings $ 976 $ 837 $ 1,025 Provision (benefit) for income taxes (321) 291 375 Equity method investment earnings (3) - - Net earnings attributable to noncontrolling interest (33) (22) (19) Net earnings from continuing operations attributable to FIS $ 1,261 $ 524 $ 631 FIS non-GAAP adjustments: Purchase accounting amortization 731 585 238 Acquisition, integration and severance 180 281 191 Acquisition deferred revenue adjustment 7 192 48 Loss (gain) on sale of businesses and investments (62) - (139) Debt financing activities 199 4 - Global restructure - - 45 Tax reform adjustments (760) - - Provision for income taxes on non-GAAP adjustments (123) (371) (92) Total non-GAAP adjustments 172 691 291 Adjusted net earnings (loss) from continuing operations, net of tax $ 1,433 $ 1,215 $ 922 Net earnings per share - diluted from continuing operations attributable to FIS common stockholders $ 3.75 $ 1.59 $ 2.18 FIS non-GAAP adjustments: Purchase accounting amortization 2.18 1.77 0.82 Acquisition, integration and severance 0.54 0.85 0.66 Acquisition deferred revenue adjustment 0.02 0.58 0.17 Loss (gain) on sale of businesses and investments (0.18) - (0.48) Debt financing activities 0.59 0.01 - Global restructure - - 0.16 Tax reform adjustments (2.26) - - Provision for income taxes on non-GAAP adjustments (0.37) (1.12) (0.32) Adjusted net earnings (loss) per share - diluted from continuing operations attributable to FIS common stockholders $ 4.27 $ 3.68 $ 3.19 Weighted average shares outstanding-diluted 336 330 289 82
A P P E N D I X Reconciliation of GAAP to Non-GAAP Financial Measures ($ Millions) Years ended December 31, 2017 2016 2015 Net cash provided by operating activities $ 1,741 $ 1,925 $ 1,131 Non-GAAP adjustments: Acquisition, integration and severance payments 101 168 80 Tax payments on divestitures 315 - - Settlement activity 51 (15) (5) Capco acquisition related payments - 27 36 Tax payment for Gaming sale - - 88 Adjusted cash flows from operations $ 2,208 $ 2,105 $ 1,330 Capital expenditures (613) (616) (415) Free cash flow $ 1,595 $ 1,489 $ 915 83