Fiserv Investor Conference Call. January 14, 2013

Transcription

1 Fiserv Investor Conference Call January 14, 2013

2 Forward-Looking Statements and Non-GAAP Financial Information The information disclosed in this presentation contains forward-looking statements, including statements regarding the company s preliminary 2012 financial results and 2013 guidance and revenue and cost synergies from the transaction discussed herein. Statements can generally be identified as forward-looking because they include words such as believes, anticipates, expects, could, should or words of similar meaning. Statements that describe the company s future plans, objectives, goals or financial performance are also forward-looking statements. Forward-looking statements are subject to assumptions, risks and uncertainties that may cause actual results to differ materially from those contemplated by such forward-looking statements. The company s preliminary 2012 financial results are subject to the company s customary quarterly closing and audit processes and are subject to change. The factors that may affect the company s results include, among others: the impact on the company s business of the current state of the economy, including the risk of reduction in revenue resulting from decreased spending on the products and services that the company offers; legislative and regulatory actions in the United States and internationally, including the impact of the Dodd-Frank Wall Street Reform and Consumer Protection Act and related regulations; the company s ability to successfully integrate acquisitions, including Open Solutions Inc., into its operations; changes in client demand for the company s products or services; pricing or other actions by competitors; the impact of the company s strategic initiatives; the company s ability to comply with government regulations, including privacy regulations; and other factors included in the company s filings with the SEC, including its Annual Report on Form 10-K for the year ended December 31, 2011 and in other documents that the company files with the SEC. You should consider these factors carefully in evaluating forward-looking statements, and are cautioned not to place undue reliance on such statements. The company assumes no obligation to update any forward-looking statements, which speak only as of the date of this presentation. This presentation includes the following non-gaap financial measures: adjusted EPS, adjusted internal revenue and EBITDA. These non-gaap measures are indicators that management uses to provide additional comparisons between current results and prior reported results and as a basis for planning and forecasting future periods. We believe that these measures provide additional insight into our operating performance. Additional information about these measures are provided in the appendix to the company s third quarter earnings release and supplemental materials. 2

3 Agenda Acquisition of Open Solutions Inc. ( Open Solutions ) 2012 Preliminary Financial Results 2013 Preliminary Guidance 3

4 Strategic Alignment Significant Distribution Opportunity Description Addition of 3,300 global clients including more than 800 core account processing clients primarily in the U.S. and Canada Anticipated Outcomes Increased sales of payments, internet banking, mobile, risk and other key solutions to increase value for Open Solutions clients Strong Business Model Majority of revenue is recurring and under long-term contracts Management focus and scale infrastructure should lead to enhanced growth in revenue, operating earnings and free cash flow Additional Open Solutions Growth Opportunities Business is constrained by debt burden and lack of capital strength Financial strength and broader distribution for DNA and other leading Open Solutions technologies should drive increased growth and greater client value Transaction Synergies Improved access to products for Open Solutions clients and broader distribution for Open Solutions technology should drive synergy value At least $125 million of anticipated synergies over the next several years Attractive Economics Transaction structure, including tax assets and synergies, drives shareholder value Net outlay is less than 5x pro-forma EBITDA and accretive to share repurchase with enhanced growth opportunities 4

5 Acquisition of Open Solutions Transaction Details Purchase Price for Equity $ 55 Assumption of Debt 960 Present Value of Tax Benefit (165) Total $ 850 $ in millions 5

6 Acquisition of Open Solutions Transaction Details Consideration is less than 5x EBITDA (including run-rate synergies and present value of tax assets). Revenue and EBITDA run rate of Open Solutions approximates $320 million 1 and $100 million, respectively Anticipated annualized revenue synergies of at least $75 million and cost synergies of $50 million to be realized over the next several years Significantly accretive to adjusted earnings per share 1 Includes Fiserv eliminations 6

7 2012 Full-Year Preliminary Financial Results 2012 Adjusted Internal Revenue Growth ~ 2% Adjusted EPS Growth ~ 12% 7

8 2013 Preliminary Guidance 2013 Adjusted Internal Revenue Growth 3 4 % Adjusted EPS Growth 15 18% Fiserv expects the conversion of an existing account processing client to its parent company s platform, and the recent extension of the Bank of America agreement, to negatively impact 2013 revenue by approximately $50 million which has been incorporated in the company s 2013 preliminary guidance. 8

9 Appendix 9

10 Non-GAAP Financial Measure EBITDA is calculated as adjusted operating income plus depreciation and amortization. 10