TPS FIS 2008 Investor Day Presentation
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Transcript of TPS FIS 2008 Investor Day Presentation
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Fidelity NationalInformation Services
Investor DayMay 28, 2008
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Forward-Looking Statements
This presentation contains forward-looking statements that involve a number of risks and uncertainties.Statements that are not historical facts, including statements about our beliefs and expectations, are forward-looking statements. Forward-looking statements are based on management's beliefs, as well as assumptions madeby, and information currently available to, management. Because such statements are based on expectations as tofuture economic performance and are not statements of fact, actual results may differ materially from thoseprojected. We undertake no obligation to update any forward-looking statements, whether as a result of newinformation, future events or otherwise. The risks and uncertainties which forward-looking statements are subjectto include, but are not limited to: risks associated with the proposed spin-off of the Lender Processing Services(LPS) segment by FIS, including the ability of FIS to contribute certain LPS assets and liabilities to the entity to bespun off, the ability of LPS to obtain debt on acceptable terms and exchange that debt with certain holders of theFIS debt, obtaining government approvals, obtaining FIS Board of Directors approval, market conditions for thespin-off, and the risk that the spin-off will not be beneficial once accomplished, including as a result of unexpecteddis-synergies resulting from the separation or unfavorable reaction from customers, rating agencies or otherconstituencies; changes in general economic, business and political conditions, including changes in the financialmarkets; the effects of our substantial leverage (both at FIS prior to the spin-off and at the separate companiesafter the spin-off), which may limit the funds available to make acquisitions and invest in our business; the risks ofreduction in revenue from the elimination of existing and potential customers due to consolidation in the banking,retail and financial services industries; failures to adapt our services to changes in technology or in themarketplace; adverse changes in the level of real estate activity, which would adversely affect certain of ourbusinesses; our potential inability to find suitable acquisition candidates or difficulties in integrating acquisitions;significant competition that our operating subsidiaries face; the possibility that our acquisition of EFD/eFunds maynot be accretive to our earnings due to undisclosed liabilities, management or integration issues, loss ofcustomers, the inability to achieve targeted cost savings, or other factors; and other risks detailed in the“Statement Regarding Forward-Looking Information,” “Risk Factors” and other sections of the Company’s Form10-K and other filings with the Securities and Exchange Commission.
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Agenda
• Strategic Overview Bill Foley
• Business Overview Lee Kennedy
• TPS Overview Gary Norcross/ Management Team
• FIS/LPS Sum-of-the-Parts Jeff Carbiener
• TPS Financial Summary George Scanlon
• Q&A Panel
• Lunch
• LPS Overview Jeff Carbiener/Management Team
• LPS Financial Summary Francis Chan
• Q & A Panel
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Strategic Overview
William P. Foley, IIExecutive Chairman
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Strategic Initiatives
M & A SummaryLender Processing Services Spin-Off
• Divestiture of non-strategic assets - Gaming - Credit - HFN - Check Services update
• eFunds Acquisition
Share Repurchases
• $250 million authorized• $106 million (42%) complete• 2.8 million shares
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Lender Processing Services Spin-OffStrategic Rationale
• Unique and distinct businesses– Different customers
– Different markets
– Different management
• Limited ability to leverage operations, technology and productdevelopment
• Competing investment and resource needs
• Pure play advantages– Reduce complexity
– Optimize relative holdings based on investment criteria
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FIS and LPS Well Positioned to Succeed as Stand-Alone Public Entities
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Fidelity National Information ServicesOrganization Structure
William P . Foley II
Executive Chairman
Eric SwensonPresident
Mortgage Information Services
Lee A . KennedyPresident & CEO
Gary NorcrossPresident and COO
Transaction Processing
Frank SanchezPresident Strategic
Development Services
Dan ScheublePresident
Mortgage Processing Services
Jeff Carbiener
President & CEO
Strong Management Teams
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Board Composition
FIS
William P. Foley, II Executive Chair
Robert M. Clements
Thomas M. Hagerty
Keith W. Hughes
David K. Hunt
Lee A. Kennedy
Richard N. Massey
LPS
William P. Foley, II Executive Chair
Marshall Haines
James K. Hunt
Lee A. Kennedy
Daniel D. (Ron) Lane
Cary H. Thompson
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Key Dates
• IRS Private Letter Ruling April 14
• Amended Form 10 Filing May 9
• LPS Board Meeting Mid-June– Approve by-laws– Establish dividend policy
• FIS and LPS Road Shows June 16 – 27
• When-issued trading Approximately 10 days prior to
distribution
• Target effective date July 1
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FIS ConsolidatedBusiness Overview
Lee A. KennedyPresident & Chief Executive Officer
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Agenda
• FIS Consolidated Business Overview
• Competitive Position
• FIS Consolidated Financial Summary
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• One of the world’s largest financial institutiontechnology processing and services providers
– $4.6 billion in 2007 revenues
– $7.6 billion market capitalization
• S&P 500 Index
• Fortune 500
FIS ConsolidatedGlobal Market Leader
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• Strong competitive position
– Occupy #1, #2 or #3 market leadership positions in all
primary businesses
– Broad geographical reach
– Industry’s broadest range of products and services
– Balanced customer and product portfolio
– Deep global customer base
• 13,000 financial institution customers
• Relationships with 41 of the top 50 global banks
• Nine of the top ten
Ranked #1 overall financial technology provider in the worldby Financial Insights and the American Banker
FIS ConsolidatedGlobal Market Leader
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Consolidated FIS
2007 Revenue*
$4.6 Billion2007 EBITDA*
$1.3 Billion
*Pro forma for 2/1/06 acquisition of CertegyExcludes corporate, and merger and integration costs
$1.7B
$2.9B
$578M
$759M
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Strong Growth and Profitability
$-
$500
$1,000
$1,500
$2,000
$2,500
$3,000
$3,500
$4,000
$4,500
$5,000
2005 2006 2007
Revenue
(1) Includes corporate revenue and EBITDA.(2) Excludes 9/12/07 acquisition of eFunds, and discontinued operations Pro forma for 2/1/06 acquisition of Certegy Excludes merger and integration costs
CAGR = 9.9%(1,2)CAGR = 12.1%(1,2)
TPS9.8%
LPS9.6%
TPS12.5%
LPS5.2%
EBITDA
CAGR(2) CAGR(2)
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Targeted, DisciplinedAcquisition Strategy
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Strong Market Leadership Positions
Transaction Processing Services
•#1 Large tier institutions
• 70 of top 100 core processing
•#2 Community-based institutions
– #1 credit card issuer services
– #1 loyalty programs
– #2 item processing
– #3 core processing
•Leading International processor
–One of top 3 card issuer services
–Growing core processing presence
Lender Processing Services
•#1 Mortgage Processing
– 50% share loans outstanding
•#1 Default Services
– 40% share new foreclosures
•#1 Centralized Settlement services
Strong Recurring Revenue
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Strategic Growth Drivers
Strong Growth Opportunities
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Leverage existingLeverage existingcustomer relationshipscustomer relationships
Expand addressable marketExpand addressable market
Disciplined Global ExpansionDisciplined Global Expansion
Strategic product developmentStrategic product development
Integrated products and deliveryIntegrated products and delivery
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Strong Product Capability
Integrated Products and Services
Transaction Processing Services Lender Processing Services
Origination,Refi &
Tax Services
Property ValuationServices
DefaultManagement
Services
Analytics & Fraud
Prevention
Property Dataand Marketing
Products
SecondaryMarket
Services
MortgageProcessing
Platform
ProcessingServices
CoreProcessing
Platform
Credit CardIssuer Services
FraudAnalytics
ChannelSolutions
Professional Services
ItemProcessing
ATM/DebitEFT/Prepaid
E-Banking/Bill Payment
LoyaltyPrograms
2007 Revenue: $2.9 BillionEBITDA Margin: 26.3%
2007 Revenue: $1.7 BillionEBITDA Margin: 33.3%
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Historical Business Structure
Transaction Processing Services Lender Processing Services
IFS EBS Int’l
Technology Technology Technology
Sales Sales Sales
ProductDevelopment
ProductDevelopment
ProductDevelopment
Operations Operations Operations
Support Support Support
MortgageProcessing
InformationServices
Sales Sales
ProductDevelopment
ProductDevelopment
Operations Operations
Call Center/
Client Support
Call Center/
Client Support
Delivery Delivery
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New Operating Model (2006 – Present)
Transaction Processing Services Lender Processing Services
Functionally Integrated Organization21
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FIS Strategic Positioning
Customer and Market Driven Operating Model
Leverage CustomerRelationships andMarket Segments
IntegratedIntegratedSales, OperatingSales, Operating& Development& Development
OrganizationOrganization
IndustryIndustry’’ssBroadest RangeBroadest Rangeof Products &of Products &
ServicesServices
StrategicStrategicInvestments inInvestments inHigh GrowthHigh Growth
MarketsMarkets
Global MarketsGlobal MarketsLocal PresenceLocal Presence
IntegratedIntegratedProductProduct
Capabilities &Capabilities &TechnologyTechnology
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FIS Summary
Transaction Processing Services
Focused core processing and payments
company
Strong organic revenue growth and highly
recurring revenue streams
Integrated sales, service and delivery
channels
Lender Processing Services
Industry leading core processing provider
Strong organic revenue growth, margin
and cash flow profile
Integrated technology, data and
outsourcing services
Strong competitive positionsProven business models
Each Business is Well Positioned to Succeed as a Stand-Alone Public Company
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2008 ConsolidatedFinancial Summary
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FIS ConsolidatedFinancial Summary
Actual Guidance
1st Quarter Full Year
Q1-2008 2008
Revenue - Continuing Operations 1,291.0$
% Growth - Total 20.5% 13% - 16%
% Growth - excluding eFunds 7.3% 5% - 8%
Adjusted EBITDA - Continuing Operations 312.3$
% Growth - Total 14.8%
Adjusted Earnings $111.3
% Growth - Total 5.7%
Adjusted EPS $0.57 $2.73 - $2.83
% Growth - Total 5.6%
Free Cash Flow (in millions) $555 - $620
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Transaction Processing ServicesBusiness Overview
Lee A. KennedyPresident & Chief Executive Officer
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Agenda
• Transaction Processing Services Overview Lee Kennedy
• Operations Overview and Strategy Gary Norcross
• Sales Organization Jim Susoreny
• International Vince Pavese
• Strategic Development Services John Gordon
• Financial Overview George Scanlon
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Strong Management Team
Lee A . KennedyPresident & CEO
Ron CookSVP and General
Counsel
Gary NorcrossPresident and COO
Transaction Processing
Frank SanchezPresident Strategic
Development Services
George ScanlonCFO (post-spin)
Mike OatesSVP Human Resources
165 Years Combined Industry Experience
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Transaction Processing ServicesStrong Competitive Position
Industry’s most comprehensive range of products andservices
Diverse customer base with broad geographical reach
• More than 13,000 financial institutions
• Customers in more than 80 countries
Unique blend of core processing and paymentproducts and services
Integrated core processing, products and delivery
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Strong Competitive Position
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Transaction Processing ServicesStrong Competitive Position
44%
24%
21%
11%
CommunityInstitutions
Mid- and Top-TierU.S. Institutions
International
Retail Point-of-Sale
2007 Revenue By Vertical
Diverse Customer Base
$1.2B
$705M
$628M$306M
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Transaction Processing ServicesStrong Revenue and Profitability
CAGR = 9.8%*
CAGR
$-
$500
$1,000
$1,500
$2,000
$2,500
$3,000
2005 2006 2007
Integrated Financial Solutions Enterprise Solutions International
29.8%
3.0%
7.2%
*Excludes 9/12/07 acquisition of eFunds, and discontinued operations
$400
$450
$500
$550
$600
$650
$700
$750
2005 2006 2007
CAGR = 12.5%
Revenue EBITDA
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Priorities
• Leverage EFD product capability and scale
– ATM/Debit/Prepaid– Risk
• Leverage product innovation– Channel solutions– Profile
StrengthenStrengthenCompetitive PositionCompetitive Position
• Execute EFD integration– $35M in-year savings
• Eliminate redundant costs– $30M in-year savings
• Leverage technology across product lines and geographies• Reduce capital spending
ImproveImprove
Operating EfficiencyOperating Efficiency
• Leverage sales organizations• Leverage customer relationships• Leverage product capabilities across market segments and customer base
IncreaseIncrease
Organic GrowthOrganic Growth
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Strategic Direction
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Industry Transformation
Past
Monoline CompaniesSingle Product Capability
• Core Processing
• Card Services
• Item Processing
• ATM Services
• E-banking
• Bill Payment
MarketDrivers
• Rapidly changing consumer
preferences
• Bank economics
• Accelerating trend towards
outsourcing
CompetitiveImperative
• Integrated Data
• Integrated Processing
• Integrated Delivery
• Scale
• Globalization
Present Future
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FIS Strategic Positioning
• Industry’s most comprehensive range of industry specific
integrated products and services
• Serving diversified customer and market segments
• Broad geographical reach
• Integrated, industry-specific sales, operating and
development organizations
• Strong domain expertise
Strong Competitive Position
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Fidelity NationalInformation Services
Gary NorcrossPresident and Chief Operating Officer
Transaction Processing ServicesMay 28, 2008
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Presentation SummaryTransaction Processing Services
• Transaction processing services overview
• Business alignment and organizational structure
• Product and market strategy overview
• TPS – 2008 and beyond
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Transaction ProcessingServices Overview
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Transaction Processing ServicesOverview
• 40 years of global market leadership in financial technology services
– $2.9 billion in annual revenues
– $759 million in EBITDA
• S&P 500 Index
• Strong competitive position
– 13,000+ financial institutions clients in over 80 countries
– Over 23,000 employees
• Leading market positions
– Core banking services
– Payment processing services
– Risk management services
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55%45%
CoreProcessing
Services
PaymentProcessing
Services
Strong diversified
revenue stream with
continued growth in
payments
TPS CAGR = 9.8% Sub-segmentCAGR
29.8%
3.0%
7.2%
$3,000
$2,500
$2,000
$1,500
$1,000
$500
$
Integrated Financial Solutions
Enterprise Solutions
International
2005 2006 2007
Other
37%
51%
11%
Transaction Processing Services2007 Financial Results
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55%45%
Transaction Processing Services2008 1st Quarter Financial Results
CoreProcessing
Services
PaymentProcessing
Services
Transaction processing
results through
innovation and attention
to detail
Other
36%
52%
12%
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denovo institutions to global market leaders
• Banks
• Credit unions
• Savings institutions
• Retail merchants
• State governments
• Telecom companies
• Payment networks
• Finance companies
• Insurance companies
Transaction Processing ServicesMarkets Served
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Markets
Served
Top 100
Banks
Small
Banks
Credit
Unions
Global
Banks
FIS
Fiserv
Harland
Jack
Henry
Metavante
Open
Solutions
Transaction Processing ServicesFinancial Institutions Served
FIS has the greatest proven scalability
of the U.S. Vendors
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Solutions for all markets
• Core processing
• Item processing
• Automotive finance
• Fraud solutions
• Loyalty programs • Decision solutions
• Debit, credit, merchant
• eBanking solutions
• Prepaid card solutions
• Global services
• Technology services
Transaction Processing ServicesProduct Capabilities
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Transaction Processing ServicesVersus Our Competitors
Internet Banking / Bill Pay
Not servedPresenceLeadership
TSYSFDCJKHYFIS FISV
Item Processing
Credit Card Processing
Core Processing
Global Services
Temenos
Debit Card Processing
Prepaid Card Processing
Decision Solutions
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TPS Statistics:
• Domestic:
– 34 percent of all consumer debt
– 25 percent of all demand accounts
– More than 9 million credit card accounts
– More than 3.5 billion checks
– More than 8 million loyalty accounts
– More than 43 million debit cards and 18,000 ATMs
• International:
– 5 of the top 5 world banks
– 47 of the top 100 world banks
– More than 35 million cards
Transaction Processing ServicesProcessing Scale
Across Six Domestic and Four International
Technology Centers46
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Transaction Processing ServicesStrong Global Relationships
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Transaction Processing ServicesBranded Financial Services Institutions
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Business Alignment andOrganizational Structure
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Transaction Processing ServicesOrganizational Alignment
• Most significant organizational change in the last 10 years
• Organizational objectives
– Accountability and ownership
– Product domain focus
– Entrepreneurialism within the business lines
– Increase sales of product and technology assets across multiplemarket segments
– Eliminate redundant expenses across divisions
– Decrease capital expenditures by eliminating duplication acrossmarket segments
• Announced November 2007 and fully implemented in February 2008
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Transaction Processing ServicesKnowledge, Clarity, Accountability
• Anthony Jabbour, EVP
– Joined FIS in 2004
– Prior to FIS successful career with CIBC and IBM
• Core Processing Solutions – Low to Moderate Growth
– Tier 1, mid-tier, community banks, credit unions
– Real time and proof of deposit environments
– Best of breed solutions
– 1,400+ clients
• eBanking – Moderate to High Growth
– Real time scalable solutions for all financial institutions
– Internet banking, commercial cash management and billpayment
– 1,000+ clients with 800+ on bill payment
N O R T H A M E R I C A
CORE PROCESSING SERVICES
Kay Nichols
Decision Solutions
Operations
CIO
Product
Solutions
Decision
Sciences
Anthony Jabbour
Core and eBanking
eBanking
Auto Finance
Tier 1
Community
Institutions
• 3 to 5 Year Contracts• CPI Escalators• Contract Termination Penalties• Highly recurring revenue
2008 1st Qtr Revenue
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Transaction Processing ServicesKnowledge, Clarity, Accountability
• Kay Nichols, EVP
– Joined Fidelity in 2007 through the eFunds acquisition
– Prior to eFunds successful career with IBM
• Decision Solutions – Moderate Growth
– Tier 1, mid-tier, community banks, credit unions
– Real time and batch decision engines
– Deeply integrated or best of breed stand alone solutions
– 88% market share
– Substantial new product launches capitalizing on FISsolution strengths across the fraud spectrum
N O R T H A M E R I C A
CORE PROCESSING SERVICES
Kay Nichols
Decision Solutions
Operations
CIO
Product
Solutions
Decision
Sciences
Anthony Jabbour
Core and eBanking
eBanking
Auto Finance
Tier 1
Community
Institutions
• 3 to 5 Year Contracts• CPI Escalators• Contract Termination Penalties• Highly recurring revenue
2008 1st Qtr Revenue
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Transaction Processing ServicesKnowledge, Clarity, Accountability
• Tony Ficarra, EVP
– Joined Fidelity in 2004 through Aurum acquisition
– Successful career with Bisys, Euronet
• Prepaid Credit Cards – High Growth
– Strong presence in retail & financial – 73M cards
– General reloadable and brand specific gift cards
• EFT/Debit Solutions – Moderate Growth
– Signature and PIN debit systems
– 2,450+ EFT Clients processing 6B transactions
– ATM driving and switching – 18,500+ ATMs
• Fraud Monitoring and Prevention – High Growth
– On-line real time fraud prevention
– Monitoring over 17M accounts
• Software Services – Low Growth
– Extensive installed base
– International market opportunity
N O R T H A M E R I C A
PAYMENT PROCESSING SOLUTIONS
Item
Processing
Randy Fluitt
Item Processing
Tony Ficarra
ATM/EFT/PrePaid
PrePaid
Debit
Card Processing
Software
Services
Commercial
Consumer Capture
Bob Bream
Credit Card
Credit Card
Processing
Loyalty
MerchantPrint and Mail
• 3 to 5 Year Contracts• CPI Escalators• Contract Termination Penalties
2008 1st Qtr Revenue
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Transaction Processing ServicesKnowledge, Clarity, Accountability
• Randy Fluitt, EVP
– Joined FIS in 2004 with the InterCept acquisition
– Held senior leadership roles with Mtech, EDS andBankline
• Item Processing Solutions – Low Growth
– Banks, savings institutions and credit unions
– 1,800+ clients
– Complete suite of distributed capture, lockbox,fraud, image and BPO products / services
• Print and Mail – Moderate to High Growth
– Financial Institutions, utilities and health care
– 250+ million annual mail pieces
N O R T H A M E R I C A
PAYMENT PROCESSING SOLUTIONS
Item
Processing
Randy Fluitt
Item Processing
Tony Ficarra
ATM/EFT/PrePaid
PrePaid
Debit
Card Processing
Software
Services
Commercial
Consumer Capture
Bob Bream
Credit Card
Credit Card
Processing
Loyalty
MerchantPrint and Mail
• 3 to 5 Year Contracts• CPI Escalators• Contract termination penalties• Highly recurring revenue
2008 1st Qtr Revenue
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Transaction Processing ServicesKnowledge, Clarity, Accountability
N O R T H A M E R I C A
PAYMENT PROCESSING SOLUTIONS
Item
Processing
Randy Fluitt
Item Processing
Tony Ficarra
ATM/EFT/PrePaid
PrePaid
Debit
Card Processing
Software
Services
Commercial
Consumer Capture
Bob Bream
Credit Card
Credit Card
Processing
Loyalty
MerchantPrint and Mail
• Bob Bream, EVP
– Joined FIS in 2002
– Prior executive leadership roles with AlliantCredit Union, VYSTAR and as a board memberof CSCU, CUNA Mutual and Century Life ofAmerica
• Credit Card Services – Low Growth
– Full service customized solutions
– 3,000+ clients
• Loyalty Services – High Growth
– Flexible turnkey solution
– 10,000+ clients with 98% renewal rate
• Merchant – Moderate Growth
– Proprietary settlement system for Visa, MC andDiscover
– 400+ clients , 30,000+ merchants
• 3 to 5 Year Contracts• CPI Escalators• Contract termination penalties• Highly recurring revenue
2008 1st Qtr Revenue
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Transaction Processing ServicesKnowledge, Clarity, Accountability
Jim Susoreny
Sales/Marketing
Client Sales
New Sales
Subject Matter
Experts
Marketing
N O R T H A M E R I C A
SALES & BUSINESS DEVELOPMENT
Channels and
Partners Sales
• Jim Susoreny, EVP
– Joined FIS in 2002
– Prior leadership roles with IBM and RegencySystems
• Sales
– Industry leader bringing rewarding newconcepts and results to FIS
– Single sales organization implementation
– Continuous outpacing the industry in crosssales results
– Record breaking year over year total contractvalue sales results
• Marketing
– Unified FIS brand and messaging
– Solution packaging and promotions toaugment end user sales by our clients
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Transaction Processing ServicesKnowledge, Clarity, Accountability
• Raja Gopalakrishnan, SVP
– Joined FIS through the Efunds acquisition
– Prior to eFunds, successful career with Bank of America andABN AMRO
• Global Solutions – Moderate Growth
– Business Services, Technology Services, Infrastructureservices and Transformation services
– Serving FIS captive businesses as well as FinancialInstitutions, Card, Payment, Communications and Technologyindustries
– Strategy: Deliver multiple value added services wrappedaround anchor FIS product/service
– 4,000+ employees across 8 international delivery centers
• India Markets – High Growth
– Managed ATM Services, Processing, Software, Prepaid, M-commerce, Business services
Raja
GopalakrishnanGlobal Solutions
Ram Chary
Technology
Banking
Payments
Technology
Network
Services
Commercial
Processing
Technology
Centers
L E V E R A G E D S E R V I C E S
TECHNOLOGYGLOBAL SOLUTIONS
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• Ram Chary, SVP
– Joined FIS through the acquisition of eFunds in 2007
– Prior career with IBM Global Solutions
• Commercial Technology – High Growth
– Infrastructure and managed operations outsourcing
– Unique client relationships
– Leverages FIS Technology Skills and Capabilities
• Fidelity Technology
– Line-of-business support from Fidelity Data Centers
– Mainframe processing and real-time transaction processing
– Home-grown internal applications, messaging and portals
– Extensive Network Infrastructure
Transaction Processing ServicesKnowledge, Clarity, Accountability
Raja
GopalakrishnanGlobal Solutions
Ram Chary
Technology
Banking
Payments
Technology
Network
Services
Commercial
Processing
Technology
Centers
L E V E R A G E D S E R V I C E S
TECHNOLOGYGLOBAL SOLUTIONS
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Transaction Processing ServicesKnowledge, Clarity, Accountability
Vince Pavese
International
EMEA
APAC
LA
I N T E R N A T I O N A L
• Vince Pavese, EVP
– Joined FIS with the Certegy merger
– Prior leadership roles with Equifax
• International Market Presence
– Europe, Middle East and Africa
– Asia Pacific
– Latin America
• International Product Offerings
– Core bank processing
– Card issuer processing
– Risk management
– Business process outsourcing
– 10,000+ employees
• 3 to 5 Year Contracts• Contract Termination Penalties• Combination of recurring and license fee revenue
2008 1st Qtr Revenue
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Product Strategy Overview
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To deploy the broadest most comprehensive productsuite in the financial services industry
• Building and enhancing our product suite– A leader in the industry regarding product development
– Advantages to Product Development:Leveraging our historical investment
Consistent technology and architecture deployment
Direct input from our clients
High sales penetration in current and future clients
– Disadvantages to Product Development:Speed to market
Domain expertise on ever increasing product breadth
Transaction Processing ServicesProduct Strategy
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To deploy the broadest most comprehensive productsuite in the financial services industry
• Buying new products to increase our product suite– A leader in the industry regarding acquisitions of products and services
Provide market leading products for existing clients and markets
To expand our capabilities into new financial services markets
– Advantages to Acquisitions:Speed to market
Increasing domain expertise
Increased profit opportunities through expense synergies
Immediate cross sell opportunities into our existing client base
– Disadvantages to Acquisitions:Company integration costs and distractions
Cultural challenges
Transaction Processing ServicesProduct Strategy
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CommunityBankingDivision
Acquired bySystematics
1991
1999
2002
2003
2004
2005
2006
1968 2007
Transaction Processing ServicesA History of Acquisition Success
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• Industry leader in electronic payments and risk management
– ATM/EFT Solutions
• Software
• Processing
– ACH processing
– Decision solutions
– Global services
• Based in Scottsdale, AZ
• More than 5,300 employees worldwide
EFD / eFunds and FISCompany Highlights
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• Greater product capability with minimal overlap
• Highly recurring revenue stream
• Accretive to cash EPS in year 1
• $65M in projected cost savings
• Strong cross-sell opportunities
• Strengthens competitive position
• Client expansion with substantial overlap
• Additional offshore capabilities (BPO and IT)
EFD / eFunds and FISStrategic Rationale
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Combined, FIS and EFD have clients inmore than 80 countries and territories.
EFD / eFunds and FISExpanded Global Footprint
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Transaction Processing ServicesAcquisition Integration – The FIS Difference
• Value vs. Size Strategy
– Seeking the best for the business
• Objective driven integration
– Synergy attainment
– Sales and Product Integration
– Client Retention
– Leadership and expertise retention
• Cross business incentives maximizing revenues and profits
• Cross Sell Priority
– Aggressive analysis and execution
• Recognizing and seizing upon new solution creation
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Transaction Processing ServicesFunctional Product Strategy
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Transaction Processing ServicesSynergy Across the Acquired Companies
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2008 and Beyond
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Transaction Processing Services2008 and Beyond
• Strengthen defenses around “commoditization”
– EFT networks
– Item processing capture centers
– Increase prepaid and other payment strengths
– Mobile banking
– ACH
– Loyalty over “everything” via householding
– Right – shoring as a service with our solutions
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Transaction Processing Services2008 and Beyond
• Strengthen fraud/analytics position
– “Verified by FIS”
– Across all touch points of institutions
• Capture payments at all points
– Remote – branch, business, home
• International - Evolve and standardize
• Mitigate risk through structured partnership arrangements
• Acquisitions that round out business function and areconsistent with our prior strategy
• Expense reductions through Business Process Outsourcing
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Transaction Processing Services The TPS Difference
TPS has made the necessary investments to continue to grow
• Clear, accountable business lines under one business umbrella
• Diversified, long term and balanced recurring revenue stream
• Most comprehensive …
– Product suite with leading edge technology
– Market coverage with minimal product overlap
– Relationships with global to denovo financial institutions as well asassociations, leagues and retailers
• Single Sales Force with a 360 client view
• Continuous product portfolio expansion and integration
• Constant focus at every level on financials
Our strategy has given us the broadest product and market scale
with the most growth upside of any provider
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Fidelity NationalInformation Services
Jim SusorenyEVP, Sales and Marketing
Transaction Processing ServicesMay 28, 2008
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Agenda
• FIS historical and current sales perspective
• FIS Sales and Marketing organization chart
• FIS go to market strategy
• Cross-sell dynamics and metrics
• FIS Sales pipeline
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Historical Sales Perspective
In recent history, FIS was a very different company from today
– Rigid divisional boundaries
– Multiple domestic sales forces
– Minimal focus on “new account sales”
– In need of significant product rounding
– Minimal next generation product strategy
– Fraction of our current clients for cross-sell lift
– Minimal focus on cross-sell into the client base
– Minimal focus on third-party sales and channel distribution
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Current Sales Perspective
Today’s FIS organization
– No divisional boundaries
– Single, united domestic sales force
– Over 13,000 domestic clients for cross-sell lift
– Industries largest breadth of solutions
– Industry leading integration methodologies
– Next generation technology deliverable
– Dedicated internal sales disciplines• New account sales production (hunters)
• Client management cross-sell (farmers)
• Product sales specialists (industry experts)
• Dedicated third-party distribution management
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FIS Sales and MarketingOver 250 Professionals
EVPSales & Marketing
MarketingThird-Party
ChannelManagement
Product Specialists New Sales
Client Management
• Product andindustryexperts
• FIS Businessline liaisons
• Focus oncompetitivetakeaways anddenovos
• New Salesbecome fuel forthe cross-sellengine
• Singleorganizationacross FIS
• All clientsassigned incoveragemodel
• Nichemarketdistribution
• New marketentry points
• UnifiedMessaging
• Branding andawareness
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Go to Market Strategy
• Compete in every qualified contractual opportunity
– New business, cross-sell, third-party channels and non-FI
– Product breadth supports new business and cross-sell
– Integration capabilities drive cross-sell into the client base
• Contract for multi-year term, minimum commitments, terminationpenalties
• Turn client tactical product decision events into strategic organizationdecisions
• Leverage third-party distribution channel
– Low-end market
– Specified geographies
– Industry niches
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Go to Market Strategy Sales Channel Distribution Strategy
• Banks and Thrifts
– Banking Association Relationships
– Bankers Bank Relationships
• Credit Unions
– State Credit Union Leagues
– Cooperatives
– Industry Associations
• All Financial Institutions
– Ancillary Technology Relationships
– Consulting Organizations
– Data Center Relationships
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Go to Market StrategyNon-FI Industry Sales Focus
• Electronic payments software clients
• Branded payment networks
• Check processing service providers
• Merchants & ATM ISO providers
• Services to other Financial Institutions “group service providers”
– Prepaid/stored value cards & services
– Electronic debit/credit services
– Credit bureau/fraud management services
• Focus on Expansion in Specific Industry Verticals
– Utilities/telecommunications/transportation/petroleum
– Insurance/Brokerage
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Go to Market ResultsMarket Leadership
• Core
– Almost 30% of all denovo market every year and increasingcompetitive take-away ratios year over year
• Decision Solutions
– Go to company for regulatory compliance and enterprise fraudmanagement
• ATM, EFT, PrePaid
– Scale, network potential and growing capabilities of PrePaidCard
• Item Processing
– Ability to capture transactions any time, anywhere, any how
• Credit Card & Loyalty
– Wrap loyalty not only over our cards, but be able to household
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Go to Market ResultsMarket Leadership
• Core
– Almost 30% of all denovo market every year and increasingcompetitive take-away ratios year over year
• Decision Solutions
– Go to company for regulatory compliance and enterprise fraudmanagement
• ATM, EFT, PrePaid
– Scale, network potential and growing capabilities of PrePaidCard
• Item Processing
– Ability to capture transactions any time, anywhere, any how
• Credit Card & Loyalty
– Wrap loyalty not only over our cards, but be able to household
Better opportunity to expand our
proven, successful
cross-sell model
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Cross Sell AnalysisCommunity Bank Market
Cross Sell Ratio
All Products
ATM/EFT 6.1
Core 18.9
Credit Card 3.1
eBanking 17.4
Item Processing 14.3
Loyalty 6.9
Total FIS 9.0
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69%
31%
62%
38%
75%
25%
86%
14%12%
88%
FIS “Tier One” ClientsCross-Sell Penetration
38%
62% 77%
23% 17%
83%
Core Item Processing ATM/EFT Prepaid
eBusiness Credit Card Channels Fraud/Risk
FIS Installed SolutionsCross-Sell “Potential”
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Vince PaveseEVP, International
Transaction Processing ServicesMay 28, 2008
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Transaction Processing ServicesInternational Market Position
• Unique inventory of core banking assets– Core bank processing
– Card issuer/acquiring services
– Risk management
– Business process outsourcing and item processing
• FIS scale and experience
• Active in established and emerging markets
• Banking and card cross-sell opportunities
• Strong integration capabilities
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Transaction Processing ServicesInternational Competitors
• Banking
– Oracle / I Flex
– SAP
– Temenos
– Other Regionals
• Cards
– FDC
– TSYS
• Outsourcing
– IBM
– EDS
– Indian Solutions (TATA)
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Transaction Processing ServicesUnique International Business Models
• Clients
– Banks, Insurance Companies, Finance Companies andRetailers
• Type of Business
– Traditional Branch Banking
– De Novo “Bank in a Box”
– Direct Bank
• Economics
– License
– Outsource / Hosted
– Managed Services
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Transaction Processing ServicesInternational Revenue Breakdown
Payments
Core
57%43%
$628 Million Annual Revenue
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Transaction Processing Services2007 International Revenue by Region
Broad International Presence
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Transaction Processing ServicesInternational Footprint
10,000 + Employees
82 Locations
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Transaction Processing Services2007 – 2008 New Business
Client Product
Banco WalMartMexico
Profile
Major UK Bank Consumer Lending
ABN Amro Brazil Card Conversion
IshBank Turkey CoreBanking
Major EuropeanInsurance Co.
Profile
St. George BankAustralia
Card
TeamBankGermany
Core24
BCP Peru TouchPoint &Xpress
ANZ Systems Consulting
Client Product
LaSer – Europe Card Conversion
Alior – Poland Profile
Banjercito Profile
First BankPuerto Rico
Xamine
First Citizens Bankof Trinidad
Profile Web Client
Woolworths –Australia
ATM Switching
NAG CommercialInternet Banking
SBI NetBank CoreBanking
NBP Pakistan Profile
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Transaction Processing ServicesBanco Walmart – Mexico
• Entry into worldwide banking
• Aggressive timetable
• Required bank certification
– Personnel (little or no priorbanking experience)
– Facilities
– Technology and systems
– Regulatory reporting
Profile
Profile Direct
Financial
Management
System
TIME FROM START UP
TO OPEN DOORS: 10
MONTHS!!
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Transaction Processing ServicesInternational Lending Utility
• Anchor Client
• Complete consumer lending system
• Leverage existing UK footprint
• Leverage technology, resources and hosting expertise
• Compliance
• Time to market advantage
• Reduced cost of entry/pay for use
• Easy access to additional products and services
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Fidelity NationalInformation Services
BrazilInternationalMay 28, 2008
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Transaction Processing ServicesBrazil Update
• Population: 190 million
• Labor force: 100 million GDP
• World’s 10th largest economy
• Large growing market
– 450 million active credit cards
– 205 million active debit cards
Cre
dit
Ca
rd T
ran
sa
cti
on
s
(in
bil
lio
ns
)
21% increase
Strong Card Issuance and Usage
Source: Brazilian Association of Credit and Service Card Companies
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Transaction Processing ServicesBrazil Update
• Joint Venture key customers: >22 million cards
– Bradesco: Largest non-government owned bank
– ABN Amro: Largest foreign bank
– Others: Panamericano, Itau, Unibanco, Citibank
• Other FIS Solutions:
– Item and payment processing
– Banking and loan solutions
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Transaction Processing ServicesInternational Market Opportunities
• China
– Core Banking
– Consumer loan processing
• Brazil/LATAM
– Cards
– Outsourcing
– Profile
• Hosted/ASP
• Multi-national
• Channel solutions
• Outsourcing/BPO
• Software license
Emerging Markets Europe and Asia Pacific
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Fidelity NationalInformation Services
John GordonStrategic Development Services
May 28, 2008
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Agenda
• Introduction
• Retail Banking Transformation Drivers
– Banks facing unprecedented challenges
– Market share, wallet share, cost reduction
• FIS Solutions
– Product Capability
– Progress Report
• Market Outlook
• Strategic Position
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Introduction to Strategic Solutions
• Target: Top Global 750 banks
– Represents $73 trillion USD in asset value
• Mission: Provide product capability to penetrate markets
• Competition: Recognizes the market potential
– Investing substantial funds
• Position: FIS – already an Established Provider
– 140+ Top Tier Core Processing Customers
– 40+ countries
• Success Criteria: Domain Expertise, Delivery Credential, Product Capability
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Agenda
• Introduction
• Retail Banking Transformation Drivers
– Banks facing unprecedented challenges
– Market share, wallet share, cost reduction
• FIS Solutions
– Product Capability
– Progress Report
• Market Outlook
• Strategic Position
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Retail BankingTransformation Drivers
Current Bank Technology Does Not Support Model
ChallengeChallenge
ObjectiveObjective
Customer Centricity Nimble, Integrated Infrastructure Real-time Systems
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Retail Bank Evolution
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Typical Retail BankingEnvironment
Service Partners
Lending
Financial Support
Decision Support /ReportingCustomer
Relationship Management / CIF
CIF -1
CIF -2
Innumerable Data Warehouses
CIF -3
CIF -4
CIF -6
CIF -5
Mortgage
Collections
Leasing and Credit
System
Credit Card
Deposits
Deposits-1 Deposits -2
IRA CD
Time Dep Deposits -3
Ancillary DDA
Auto BorrowAuto Invest Sweeps
ATM /Settle
Bank Credit Card
Network for Corp
Reporting
Financial
Authorization
3
Marketing
DataMart /Pricing
PC Banking
Direct Bank Bill
Pymt , Quicken , etc
Combined
Statements
Total Funds
Univ Data
Collection
Routing of
electronic
Consumer
ACH
Microfilm
Check Order
Account
Research
Stmt Recon
Fraud
Fed Wire
Funds Mgmt
Profitability
Controlled
Disbursements
Comb Stmt Formatter
Dormant /Echeat
Check Presentment
General Ledger
Financial Systems
Tin Certification
Inter System Xfer
Archive Retrieval
Kiting
Large Currency
Reln Support /
Tracking
Check Loss -1 Check Loss -2
Xfer Fees Tax Reporting Exc , Check Sorting , Adj, Recon
Signature
CaptureCollections Agencies
Insurance
Title
Credit Bureaus
Mortgage Agencies
Financial
Authorization
1
Financial
Authorization
2
Authorization
Escheat
Liability /Risk
Customer ChannelsLoan
Originations
ATM
VRU
Platform
Teller Internet
Banking
Platform
Teller
Call
Center
Direct
Indirect
Credit Review &
Connection
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Agenda
• Introduction
• Retail Banking Transformation Drivers
– Banks facing unprecedented challenges
– Market share, wallet share, cost reduction
• FIS Solutions
– Product Capability
– Progress Report
• Market Outlook
• Strategic Position
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FIS Touchpoint™
Customer Centric Channel Solution
• Customer Facing: FIS Touchpoint™ Channel Solutions
– Optimization of Sales Interactions
– Every Service Interaction is a Sales Interaction
– Consistent Decisioning Based on Customer Value
– Regulatory Compliance is Built-in
– Infrastructure is Pre-built for Intelligent Processing (not simply
connectivity)
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Comparison ofChannels Approaches
Multi-vendor Solutions
FIS Xpress™
Enterprise System Services
1,400 Xpress Enabled Services200 IFX Banking Services
Single and Multi-host Adapters
TouchPointAccount Opening
TouchPointTeller
TouchPointService
TouchPointMarketer
TouchPointSales
TouchPoint Business Intelligence
Channel Applications – FIS TouchPoint™ Suite
FIS Solution
CustomerSystem
Core Systems
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Touchpoint™ Channel Solutions
• Drives product cross sales for new and established
customers reducing churn and increasing profitability.
• During account opening banks have achieved
─opening 2x products
─ in 50% of the time
• At the point of service, a major Retail US Bank achieves
the following cross sell results:
– 50% of solicitations result in acceptance or close
– 20% are closed during the service transaction
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Progress Report –Touchpoint™ Channel Solutions
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FIS Profile™
Real-time Core Processing Solution
• Real-time Core Processing: FIS Profile™
– Sophisticated Product Engine
– Dramatic IT Cost Reduction
– Dramatic Back Office Processing Reduction
– Hardened and Installed in Markets Worldwide
– Pre-Built User Interface, Available as Product
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Comparison of CoreReplacement Approaches
• Rip & Replace
– “Spinal Transplant”
– Perpetuate the spaghetti or
invent the integration layer
• FIS: Managedtransformation
– Proven integration asset
– Dramatic effort reduction
– Insulates back office
technology from channels
Service Partners
Financial Support
Customer Channels Loan
Originations
Decision Support/Reporting
Customer
Relationship
Management / CIF
KTC
BOSS
The W
CDW
CIF
CIS
GPSI
GAIS
Credit
Review &
Connection
CMSI
ACAPs
Credit Card - TSYS
DDA
ABM
Auto Borrow
AIS
Auto Invest Sweeps
ATM/Settle
BCC
Bank Credit Card
Encore
Network for Corp
ReportingFAST
Financial
Authorization
APO
HEJ
MDM
Marketing
DataMart/Pricing
BRK/MMGR
National Financial
PC Banking
IFN, Direct Bank Bill
Pymt, Quicken
SCS
Combined
Statements
TFR
Total Funds
GN
UDCF
Univ Data
Collection
TRX
Routing of
electronic
ACH
ANT
Microfilm
AOR
Check Order
ARAS
Account
ResearchARP
Stmt ReconAS1
Fraud
BESS/FWT
Fed Wire
BOLT2
Funds Mgmt
CAPS
Profitability
CDA
Controlled
Disbursements
CSF
Comb Stmt Formatter
Dormant/Echeat
ECP
Check Presentment
FCS
General Ledger
Financial Systems
HX
Tin Certification
IT
Inter System Xfer
KAR
Archive Retrieval
KDM
Kiting
LCR
Large Currency
PEGA
Rel Support/Tracking
Perfect
View
Pulse Check
Check Loss
Smart Notes
Check Loss
TES
Xfer Fees
TX
Tax Reporting
Vector 3000, 4, 5, 8
Exc, Check Sorting, Adj, Recon
Veritas
Sign Capt
Collections Agencies
Insurance
Title
Credit Bureaus
Mortgage Agencies
Platform
Teller
ATM
VRU
Platform
TellerInternet
Banking
Platform
Teller
Call
Center
FAST
Financial
Authorization
APO BOL
Authorization
Anciliary
APECS
Escheat
LRS
Liability/Risk
FIS Profile(Real Time)
Legacy
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Core Replacement Competition
(Competition is not traditional U.S. – Fiserv, Jack Henry)
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Profile™ Core Processing Case Studies
• Profile™ customers have improved market penetration by
being soonest to market with innovative products
• Reduced time to market from 6 months to 20 days
• Profile™ customers leveraged reduced operating cost and
generally offer the most attractive deposit interest rates in
their markets
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Progress Report – Core Replacement
• Financial Institutions are choosing Profile™ Core Processing
• Broad acceptance from buyers in sophisticated markets
UK, Germany, Belgium,U.S., France, Italy, Ireland,
UAE
U.S., Canada, UK, Spain,France, India (Vsysa), Hungary,Italy, Chech, Poland, Slovakia,
Ukraine, InterAvies, PostBank NV, Romania
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Agenda
• Introduction
• Retail Banking Transformation Drivers
– Banks facing unprecedented challenges
– Market share, wallet share, cost reduction
• FIS Solutions
– Product Capability
– Progress Report
• Market Outlook
• Strategic Position
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Market Outlook
• Global Market Comprised of Top 750 banks
• Continued Traction in Touchpoint™ Channels
– $25b USD General Channels IT Spend 2008-2012
• Accelerating Activity in FIS Profile™ Core Processing
– New/Cross-over Banks continue selecting FIS Profile
– International Banks continue selecting FIS Profile
– US Banks accelerate as cost pressure mounts
• Bottom line improvement
• Reduction as funding source
– $35b/year USD General Core Processing IT Spend
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Agenda
• Introduction
• Retail Banking Transformation Drivers
– Banks facing unprecedented challenges
– Market share, wallet share, cost reduction
• FIS Solutions
– Product Capability
– Progress Report
• Market Outlook
• Strategic Position
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ConclusionFIS Strategic Position
• FIS heavily invested in state-of-the-art solution set
• FIS provides substantial, proven improvement
– Bank efficiency, flexibility, and capability
• Financial Institutions have no alternative
– must address their aged infrastructure
• FIS makes transformation simple and easy
• Competitors aggressively trying to develop similar technology
• Leading edge capability competitively positions FIS
TouchPoint™ Channels Suite
FIS Profile(Real Time)
Legacy
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Sum-of-the-Parts
Guidance
Jeff Carbiener
Chief Financial Officer
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Adjustments to 2007 Results of Operations
Non- Net Free
Revenue EBITDA EBIT Operating Pre-tax Earnings Cash Flow (1)
Non-GAAP Adjustments:
Eliminate TPS Non-GAAP Items & Adjust Working Capital $0.0 $4.6 $18.1 $1.0 $19.1 $12.1 $51.5
Eliminate LPS Non-GAAP Items & Adjust Working Capital - 6.8 7.9 - 7.9 5.0 5.0
Eliminate Corporate Non-GAAP Items & Adjust Working Capital - 2.8 2.8 (330.0) (327.3) (206.2) 145.9
Total Non-GAAP Adjustments $0.0 $14.2 $28.8 ($329.0) ($300.3) ($189.2) $202.4
Carveout Adjustments:
Transfer Managed Ops Contracts to TPS $45.6 $7.0 $6.5 $0.0 $6.5 $4.1 $0.0
Transfer Technology Depreciation to TPS - 30.6 - - - - -
Transfer Technology Ops to TPS - (16.9) (16.9) - (16.9) (10.7) -
Allocate Interest Expense to LPS - - - 91.0 91.0 55.8 55.8 Total Carveout Adjustments $45.6 $20.7 ($10.4) $91.0 $80.6 $49.3 $55.8
(1) Primarily represents the payment of tax liabilities associated with the disposition of non-strategic investments, as well as the after-tax impact of
non-recurring integration costs. Refer to Exhibit F of the first quarter 2008 earnings release included in the appendix.
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2007 Income Statement Reconciliation
TPS LPS Corp FIS
Revenue:
Revenue, as reported $2,888.7 $1,736.2 $11.8 $4,636.7
Non-GAAP adj - - - -
Carveout 45.6 (45.6) - -
Corporate allocation 11.8 - (11.8) -
Pro Forma 2,946.1 1,690.6 - 4,636.7
EBITDA:
EBITDA, as reported 754.4 571.6 (89.8) 1,236.2
Non-GAAP adj 4.6 6.8 2.8 14.2
Carveout 20.7 (20.7) - -
Corporate allocation (56.1) (31.0) 87.1 -
Pro Forma 723.6 526.7 - 1,250.3
EBITDA Margin 24.6% 31.2% 27.0%
EBIT:
EBIT, as reported 415.6 441.9 (111.9) 745.6
Non-GAAP adj 18.1 7.9 2.8 28.8
Carveout (10.4) 10.4 - -
Corporate allocation (73.1) (36.1) 109.2 -
Pro Forma 350.3 424.1 - 774.4 EBIT Margin 11.9% 25.1% 16.7%
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2007 Income Statement Reconciliation -Cont
TPS LPS Corp FIS
Net Earnings:
Net Earnings (1) $310.9 $250.3 - $561.2
Non-GAAP adj, net of tax (189.2) - - (189.2)
Carveout adj, net of tax 49.3 (49.3) - -
Pro Forma $171.0 $201.0 - $372.0
Adjusted Earnings:
Adjusted Earnings (1) $391.0 $276.4 - $667.4
Non-GAAP adj, net of tax (189.2) - - (189.2)
Carveout adj, net of tax 49.3 (49.3) - -
Pro Forma $251.1 $227.1 - $478.2
Adjusted EPS - Diluted
Adjusted EPS - Diluted (1) $2.01 $1.41 - $3.40
Non-GAAP adj (0.96) - - (0.96)
Carveout 0.25 (0.25) - -
Pro Forma $1.30 $1.16 - $2.44
Free Cash Flow:
Free Cash Flow (1) ($92.2) $212.4 - $120.3
Non-GAAP adj, net of tax 202.4 - - 202.4
Carveout adj, net of tax 55.8 (55.8) - -
Pro Forma $166.0 $156.6 (2) - $322.6
(1) Earnings by operating segment have not been previously disclosed. These results reflect
the allocation of the corporate segment to the TPS and LPS operating segments.
(2) Reflects free cash flow for LPS as included in the Company's Form 10 for year ended
December 31, 2007, adjusted to include a proforma allocation of interest expense.
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2008 Guidance Reconciliation
FIS
(amounts in millions except per share data) Consolidated TPS LPS
Revenue 13% - 16% 17 - 19% 7% - 9%
EBITDA 15% - 17% 21.5% - 23.5% 7% - 9%
EBIT 19.5% -21.5% 31% - 33% 9% - 11%
Net Earnings per Diluted Share $2.15 - $ 2.25 $1.02 - $1.08 $1.12 - $1.18
Adjusted Earnings per Diluted Share $2.73 - $2.83 $1.48 - $1.54 $1.24 - $1.30
Free Cashflow $555 - $620 $340 - $370 $205 - $240
Diluted Shares (1) 197.5 194.0 194.0
Capital Expenditures (2) $280 - $300 $215 - $225 $65 - $75
Depreciation & Amortization $530 $425 $95
(1) For comparability purposes, a projected diluted share count of 194.0 million has been
used for both TPS and LPS. However, following completion of the LPS spin-off transaction,
FIS shareholders are expected to receive .5 shares of LPS common stock for each
share of FIS common stock they hold.
(2) 2008 capex guidance for TPS excludes estimated EFD integration capital totaling $25 million.
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Estimated Incremental Costs
Net Adj EPS - Full Year
EBITDA EBIT Earnings Diluted Impact
Operating Expenses $11.2 $11.2 $6.9 $0.04 $0.05
Interest Expense (1) - - 5.6 0.03 0.06
$11.2 $11.2 $12.5 $0.07 $0.11
Impact on LPS Standalone 2008 Guidance -2% -3% -3% ($0.07)
(1) Reflects estimated incremental interest expense of $9.1 million to be incurred for the remainder of 2008.
2008 In-year Impact
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2008 Adjusted LPS Guidance
2007 2008
(amounts in millions except per share data) Carveout Guidance (1)
Revenue $1,690.6 7% - 9%
EBITDA 526.7 5% - 7%
EBIT 424.1 6% - 8%
Net Earnings per Diluted Share $2.06 $2.10 - $2.22
Adjusted Earnings per Diluted Share $2.32 $2.34 - $2.46
Free Cashflow $156.6 $193 - $228
Diluted Shares (2) 97.7 97.0
Capital Expenditures $70.6 $65 - $75
Depreciation & Amortization $102.6 $95
(1) 2008 LPS guidance reflects impact of estimated incremental costs included on previous slide.
(2) Following completion of the LPS spin-off transaction, FIS shareholders are expected to
receive .5 shares of LPS common stock for each share of FIS common stock they hold.
LPS
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2008 Restructuring Charges
(in millions) TPS LPS Total
LPS Spin-off Costs $20 - $25 - $20 - $25
eFunds Integration Costs $20.0 - $20.0
Restructuring Charge $10 - $15 $5.0 $15 - $20
Total $50 - $60 $5.0 $55 - $65
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Fidelity NationalInformation Services
George P. ScanlonExecutive Vice President
Finance
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130130
Transaction Processing ServicesBroad Revenue Distribution
APAC & Other
5%
Brazil
6%
EMEA
10%U.S.
79%
2007 Revenue by Region
44%
24%
21%
11%
Community
InstitutionsMid- and Top-TierU.S. Institutions
International
Retail Point-of-Sale
2007 Revenue by Segment
Diverse Customer Base Growing International Presence
$1.2B$705M
$628M$306M
$2.2B$296M
$175M$157M
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131131
Transaction Processing ServicesSignificant Recurring Revenue
86%
8%
6%
Processing and Maintenance• Processing Services• Software Maintenance• Network/Interchange Fees
Professional Services
Other
86% Recurring Revenue
2007 Revenue$2.9 Billion
Other = $168 million
Software 4%
Equipment Sales 1%
Termination Fees 1%
$2.5B
$224M
$168M
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Transaction Processing ServicesRecurring Revenue by Segment
82%
80%
82%
73%
92%
9%
10%
13%
19%
3%8%
9%
10%5%
8%5%6%
0%
20%
40%
60%
80%
100%
TPS IFS EBS International
Recurring Professional Services Other
86%
Strong Recurring Revenue Balanced Among Segments
Note: Highlighted numbers are exclusive of Retail Point-of-Sale Check Services
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2008 Estimated Revenue
2007 2008 Growth Excluding
Pro Forma Low High eFunds (2)
IFS 1,254.3$ 20% 22%
EBS 1,010.6 11% 13%(1)
Int'l 628.5 22% 24%
Other (4.8) -25% -25%
As reported 2,888.7 17% 19% 4% - 6%
Carve out adjustment 45.6 -4% -4%
Leasing contracts (3)
11.8 -100% -100%
As adjusted 2,946.1$ 16% 18%
(1) EBS growth would approximate 20% excluding Retail POS Check Services
(2) eFunds acquisition completed 9/12/07
(3) Leasing contracts sold 9/30/07
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Transaction Processing Services2007 EBITDA Margin
Revenue EBITDA EBITDA %
2007, excluding charges 2,888.7$ 759.0$ 26.3%
Carve out adjustments:
Transfer of managed operations contract 45.6 7.0 -0.2%
Transfer technology depreciation - 30.6 1.1%
Transfer technology operations (16.9) -0.6%
Corporate allocation - leasing contracts(1)
11.8 11.4 0.3%
Corporate expense allocation - (67.5) -2.3%
2007, as adjusted 2,946.1$ 723.6$ 24.6%
(1) Leasing contracts sold 9/30/07
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Transaction Processing ServicesMargin Trends
25.5%24.6%
23.6%
21.4%
$500
$1,000
$1,500
$2,000
$2,500
$3,000
$3,500
2005 2006 2007 2008 (e)
12%
16%
20%
24%
28%
32%
TPS Revenue TPS EBITDA Margin
Primary Sourcesof Margin Expansion
• Target 90 bps improvement• Tough first half comparables - second half improvement• Margins rise sequentially balance of year• Brazil card processing• eFunds synergies• Cost reductions
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Transaction Processing Services2008 Outlook
TPS 2007 Estimated 2008
(in millions, except per share amounts) Pro Forma Low High
Revenue 2,946$ 16.0% 18.0%
Adjusted EBITDA, excluding other costs (1)
724 21.5% 23.5%
D&A 373 425 425
Interest expense and other, net 106 145 145
Minority interest expense (income) 3 (5) (5)
Acquisition related amortization, net of tax (2)
80 89 89 (2)
Adjusted Net Earnings - continuing operations 242 287 299
Adjusted Net Earnings Per Share - continuing operations 1.23$ 1.48$ 1.54$
Average Diluted Shares 196.5 193.9 193.9
Tax Rate 36.0% 36.0%
Estimated 2008
Q1 Q2 Q3 Q4 2008(1) Merger & integration costs, net of tax 10$ 2$ 1$ 1$ 13$
LPS spin-off costs, net of tax 2 13 - - 15
Restructuring costs, net of tax - 7 - - 7
11$ 22$ 1$ 1$ 35$
(2) Acquistion related amortization, net of tax 23$ 23$ 22$ 21$ 89$
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Transaction Processing ServicesCapital Expenditures by Segment
$25
$75
$125
$175
$225
$275
2006 2007 2008E
IFS EBS FTS Int'l % of Revenue
4%
6%
8%
10%
12%
Reduced Capital Intensity in 2008
(In
millio
ns)
$245
$274
$221
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Transaction Processing ServicesEstimated Free Cash Flow
TPS Adjusted Estimated
2007 2008
Low High
Net Earnings(1,2)
528.0$ 196.0$ 208.0$
Add: D&A 379.6 425.0 425.0
Other, net (468.9) (56.0) (48.0)
Cash flow from operations 438.7$ 565.0 585.0
Capital expenditures(3)
(272.7) (250.0) (240.0)
Net free cash flow 166.0$ 315.0$ 345.0$
(1) Refer to Appendix for reconciliation of GAAP to non-GAAP free cash flow.
(2) Excludes acquisition related integration costs and restructuring expense.
(3) Includes PP&E, purchased software, capitalized software and approximately
$25 million for eFunds integration capital.
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Transaction Processing ServicesUses of Cash
• Investment in organic growth initiatives
• Debt Reduction
– $100 million eFunds notes retired 2/2008
– $200 million Certegy notes due 9/2008
– Scheduled Term A repayments
2008 - $68.5 million
2009 - $121 million
2010 - $226 million
• Share Repurchases
– $250 million buyback substantially complete by 6/30/08
– $106 million completed (2.8 million shares)
• Targeted Acquisitions
– Increase scale and/or augment existing product capability
– Enhance long-term growth rates
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Transaction Processing ServicesLong-Term Growth Objectives
2009 - 2011
Growth Objectives
Organic Revenue 6% - 9%
Adjusted EBITDA 9% - 12%
Adjusted Earnings Per Share 15% - 20%
Capital Expenditures (% Revenue) 5% - 7%
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141141141
Q & A