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FIS Bank of America Conference September 2008


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FIS Bank of America Conference September 2008

  1. 1. Fidelity National Information Services Bank of America 38th Annual Investment Conference September S t b 2008
  2. 2. Forward Looking Statements g This presentation contains forward-looking statements that involve a number of risks and uncertainties forward looking 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 made by, and information currently available to, management. Because such statements are based on expectations as to future economic performance and are not statements of fact, actual results may differ materially from those projected. We undertake no obligation to update any forward- looking statements, whether as a result of new information, future events or otherwise. The risks and uncertainties which forward-looking statements are subject to include, but are not limited to: changes in general economic, business and political conditions, including changes in the financial markets; the effects of our substantial leverage which may limit the funds available to make acquisitions and invest in our business; the risks of reduction 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 the marketplace; 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 may not be accretive to our earnings due to undisclosed liabilities, management or integration issues, loss of customers, 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 Form 10-K and other filings with the Securities and Exchange Commission. 22
  3. 3. Fidelity National Information Services y Overview 2007 Revenue Breakdown • Leading global payment and core processing services provider • Leading market positions Payment Core C Processing – Payment processing services Processing 38% Services Services – Core banking services 51% – Risk management services • Significant scale – $2.9 billion in annual revenues 11% – $724 million in Adjusted EBITDA¹ Other – 13,000+ 13 000+ financial institutions clients in over 80 countries 2007 Revenue: $2.9bn – Over 23,000 employees • Broad global reach ¹ Pro forma for discontinued operations (including LPS) and allocation of corporate expense. Refer to 8K filed 9/5/2008 for reconciliation to GAAP. Diversified Payments and Core Processing Company 33
  4. 4. Diverse and Recurring Revenue g 2007 Revenue by Type 2007 Revenue by Vertical Total Revenue: $2.9bn Community Institutions $1.2bn Recurring Revenue 44% (Processing & Mid- and Top-Tier Maintenance) U.S. Institutions 24% 86% Professional $2.5bn $704mm 8% Services $224mm 6% Other $168mm 11% 21% Check Risk Management International (U.S. & Australia) $628mm Other: $306mm   Software Software 4%    Equipment Sales 1%    Termination Fees 1% Diverse Customer Base 86% Recurring Revenue 44
  5. 5. FIS Competitive Position p Operating Model Competitive Positioning • Stable and highly recurring gy g • Industry’s most comprehensive Industry s revenue - 86% range of core processing and payment services products • Strong margin and scale efficiencies – transaction driven • Diversified markets and customer base • Solid organic growth − Community institutions generated through: − Tier 1 – international expansion p − International – cross selling ancillary products – penetration of new market segments/strategic product g gp development 55
  6. 6. Financial Institution Market Penetration $0 - $5 B $5 - $10 B Over $10B International Community Mid-Market Tier One FIS Fiserv Metavante Jack Henry Not Served Presence Leadership 66
  7. 7. Industry’s Most Comprehensive Products and Services FIS FISV JKHY MV iFlex IBM TEMENOS Core Services Core Processing Internet Banking Item Processing Payment Services Credit Card Debit Card PrePaid Card Bill Payment Risk Management Decision Solutions Global Services Not Served Presence Leadership 77
  8. 8. Strong International Market Position g 2007 International Revenue by Region • Strong presence in established and Asia Pacific emerging markets & Other 18% $113 – Serving customers in more than 80 countries EMEA $295 47% • Strong product capability Latin $220 America – Core bank processing 35% – Card processing p g Total Revenue: $628mm tl $628 – Risk management – Business process outsourcing Revenue Growth • Excellent core and payment cross-sell $750 opportunities t iti $500 • Well positioned in high growth markets $250 $0 2004 2005 2006 2007 26% Growth First Half 2008 88
  9. 9. Integrated Core and Product Technology Strong Operating Leverage and St O ti L d Improved Customer Service Credit Card Fraud Services Analytics • Strong bank operating efficiencies Loyalty – Integrated data and delivery Core Programs Channel – Improved pricing Processing Platform – Improved risk E-Banking/ g/ Professional • Improved customer service Bill Payment Services – Multi-channel consumer access Item ATM/Debit Processing EFT/Prepaid – Consistent, timely, and complete account information – Consolidated statements Generates Strong Cross-Sell Opportunities 99
  10. 10. Market Segment Assessment g Tier One Banks Community Banks International Predominately Discretionary y Globalization and regulatory outsourced model t d dl Software compliance challenges driving solid demand High recurring Outsourced revenues – 92% Accelerating demand Processing for payment services Low discretionary spending Professional Slowing Fewer Acquisitions/ Services UK Market Increased Failures Market Outlook Market Outlook Market Outlook Mixed Cautionary Stable Stable 10 10