ACI Worldwide, Inc. · NASDAQ:ACIW
ACI Worldwide — Investor Day (March 2017)
69 slides from ACI Worldwide's investor day presentation, Mar 10, 2017
Slide 1: Investor Day, March 9, 2017
Thursday, March 9, 2017 Exhibit 99.1
Slide 2: Safe Harbor For Forward-Looking Statements
This presentation contains forward-looking statements based on current expectations that involve a number of risks and uncertainties. The forward-looking statements are made pursuant to safe harbor provisions of the Private Securities Litigation Reform Act of 1995. A discussion of these forward-look
Slide 3: Welcome
John Kraft Vice President, Investor Relations & Strategic Analysis Welcome
Slide 4: Agenda
ACI Evolution and Strategy Financial Highlights UP Solutions: Success in On Premise and Growth in the Cloud BREAK ACI On Demand Immediate Payments: A Global Roundtable Discussion Q&A Lunch and Networking AGENDA
Slide 5: ACI evolution and strategy
Phil Heasley President & CEO ACI evolution and strategy
Slide 6: Objectives
Not a processing business 12-year journey Power of UP OBJECTIVES
Slide 7: Our Vision
OUR VISION ACI is a highly focused and unified payments software enterprise that enables any-to-any payment transactions to occur regardless of time, location or type, supporting multi-party payments with the notion that the purchaser directs the payments to his/her provider of choice to satisfy the
Slide 8: ACI Presence on FI Value Chain
ACI Presence on FI Value Chain Corporate Functions Secondary Activities Retail Bank Wholesale Bank Lending Mortgage Personal Auto Cards Shared Services Core Payments Deposit Product Channels: ATM Branch Online Phone Deposit Corporate Institutional Lending Real Estate Syndicated Corporate Consumers C
Slide 9: Wholesale Payments Heat Map
Wholesale Payments Heat Map Low Value High Value B2B & B2C Commerce Banking Payments Systems of Record Leader Contender Participant Absent No Interest Wholesale (trad.) Wholesale (acq.) Published in 2005
Slide 10: Retail Payments Heat Map
Retail Payments Heat Map Signature PIN or Account # C2B Commerce Banking Payments Systems of Record Leader Contender Participant Absent No Interest Payments Mgmt Risk Mgmt Base24-eps Payments Engines Published in 2005
Slide 11: The Journey UP – Reaching Universal Connectivity
The Journey UP – Reaching Universal Connectivity
Slide 12: UP – Reaching Universal Connectivity
U P UP – Reaching Universal Connectivity Services End Points
Slide 13: ian U2 | 3) J
ian U2 | 3) J 4 7 IACI pases:
Slide 14: Services and End Points
Services and End Points Services and End Points Hub Coarse-grained UP Services End Points
Slide 15: UP – Reaching Universal Connectivity
UP – Reaching Universal Connectivity Services End Points
Slide 16: PAY.ON: Expanding our Connectivity
PAY.ON: Expanding our Connectivity Services End Points PAY.ON 25 Services 412 End Points
Slide 17: External Services and End Points
UP – Reaching Universal Connectivity Services End Points External Services and End Points
Slide 18: External Services and End Points
UP – Reaching Universal Connectivity Services End Points External Services and End Points
Slide 19: UP Retail, UP Wholesale, UP Merchant
UP Retail UP Wholesale UP Merchant
Slide 20: Financial highlights
Scott Behrens Chief Financial Officer Financial highlights
Slide 21: ACI Shift Towards the Cloud
ACI Shift Towards the Cloud Faster growth in ACI’s cloud business Merchant retailer and particular focus on eCommerce Traditional On Premise customers converting to Cloud Cash management
Slide 22: ACI Revenue Model Shifts with Cloud Adoption
ACI Revenue Model Shifts with Cloud Adoption Go Live Higher percentage realized at go-live Revenue starts when customer is live Sign Contract Year Steady recurring revenues Revenue starts when customer is live Sign Contract Year Go Live On Premise
Slide 23: ACI Revenue Model Shifts with Subscription Adoption
Go Live Sign Contract Year Year Sign Contract Go Live ACI Revenue Model Shifts with Subscription Adoption On Premise
Slide 24: Deployment Model Characteristics
Faster implementations Lower degree of customization More predictable revenue stream Longer implementations Greater degree of customization Greater stickiness Deployment Model Characteristics On Premise Cloud
Slide 25: Revenue Drivers
Harvest backlog Improve customer onboarding time New logos and incremental volume from existing customers Disciplined transaction-based pricing Execute on UP strategy New logos Cross-selling to existing customers Price increases Secular transaction growth Revenue Drivers On Premise Cloud
Slide 26: Profitability Drivers
Scale will deliver high incremental margins Lower cost to operate SaaS and Platform businesses Become low-cost producer Manage customer success Layer on new license and maintenance revenue on top of relatively fixed cost basis Increase implementation services productivity Improve maintenance margins
Slide 27: Organic Growth Increasing
Organic Growth Increasing 2013 2016 2017 2-5% Growth $ Millions 2015 2014 +4% +5% +3% +1% -2%
Slide 28: 2017 Guidance
2017 Guidance 2016 Pro Forma 2017 Guidance -$15 Deduct CFS 2-5% Growth FX Impact -$10 $ $ Millions
Slide 29: Financial Summary – Five-year Targets
Organic revenue growth Mid-to-upper single digits Adjusted EBITDA margin 100 bps expansion per year Operating free cash flow Track adjusted EBITDA growth New bookings growth High single digits Financial Summary – Five-year Targets
Slide 30: ACI UP Solutions: success in on premise and growth in the cloud
Craig Saks Chief Operating Officer ACI UP Solutions: success in on premise and growth in the cloud
Slide 31: Taking ACI's Vision to Market
Taking ACI’s Vision to Market UP RETAIL PAYMENTS™ UP PAYMENTS RISK MANAGEMENT™ UNIVERSAL PAYMENTS UP IMMEDIATE PAYMENTS™ UP TRANSACTION BANKING UP MERCHANT PAYMENTS™ UP eCOMMERCE PAYMENTS™ UP BILL PAYMENT™ UP TRANSACTION BANKING™ WHOLESALE PAYMENTS CONSUMER PAYMENTS IMMEDIATE PAYMENTS RETAILERS & BI
Slide 32: ACI Solutions Support Full Range of Deployment Options
ACI Solutions Support Full Range of Deployment Options UP RETAIL PAYMENTS UP PAYMENTS RISK MANAGEMENT UNIVERSAL PAYMENTS UP IMMEDIATE PAYMENTS UP TRANSACTION BANKING UP MERCHANT PAYMENTS UP eCOMMERCE PAYMENTS UP BILL PAYMENT UP TRANSACTION BANKING WHOLESALE PAYMENTS CONSUMER PAYMENTS IMMEDIATE PAYME
Slide 33: Universal Payments Ecosystem
Design, development, delivery Universal Payments Ecosystem SERVICE & API MANAGEMENT (DESIGN TIME) Canonical Model Focus (IFX, ISO 20022) CANONICAL MODELS SERVICE MODELS API MODELS UP FRAMEWORK Agile Product Dev Service/API Focus PAYMENTS RISK MANAGEMENT Merchant Retail & Bill Pay Capabilities Immedi
Slide 34: Retail Payments: 2012
Retail Payments: 2012 x | soos
Slide 35: Retail Payments: 2016
Retail Payments: 2016 $ $$$ UP Retail Payments drives growth through expanded relationships and new sales Selected examples for discussion
Slide 36: MTS & Immediate Payments: 2012
MTS & Immediate Payments: 2012 $ $$$
Slide 37: MTS & Immediate Payments: 2016
MTS & Immediate Payments: 2016 Loyal MTS customers and transformation of Immediate Payments drive real-time payments adoption globally $ $$$ Selected examples for discussion
Slide 38: Merchant Retail & Billers - 2012
Merchant Retail & Billers - 2012 $ $$$
Slide 39: Merchant Retail & Billers - 2016
Merchant Retail & Billers - 2016 eCommerce, omni-channel and shift to the cloud provide growth opportunity $ $$$ Selected examples for discussion
Slide 40: Fraud - 2012
Fraud - 2012 INCE aiienes
Slide 41: Fraud - 2016
Fraud - 2016 eCommerce, real time and convergence of issuer and merchant data drive growth $ $$$ Selected examples for discussion
Slide 42: ACI - 2016
ACI - 2016 INCE aiienes
Slide 43: Ongoing Opportunity
Industry leadership – participate on 70+ industry and standards bodies Ongoing shift to payments in the cloud European data center investments Industry operating cost reduction based on consolidation and re-platforming play to ACI’s strengths Major trends such as immediate payments, eCommerce, cross
Slide 44: Executing Our Vision and Driving Results
Customer Focus Acceleration New Business Product Excellence Customer Focus Acceleration New Business Product Excellence Executing Our Vision and Driving Results
Slide 45: Product and Sales Leaders
Mandy Killam ACI On Premise Dan Frate ACI On Demand Eve Aretakis Product Development Carolyn Homberger Global Sales
Slide 46: Break: Universal Payments Platform Demo
BREAK Universal PAYMENTS PLATFORM DEMO
Slide 47: ACI On Demand: Delivering Solutions in the Cloud
Dan Frate Group President, ACI On Demand ACI On Demand: Delivering Solutions in the Cloud
Slide 48: ACI On Demand: 4,600+ Customers
ACI On Demand 4,600+ AOD Customers
Slide 49: Key Drivers of Payments to the ACI Cloud
Anal Key Drivers of Payments to the ACI Cloud Speed to Market Focus and Flexibility Security and Compliance Economics Scalability
Slide 50: Market Opportunity for Cloud-Based Transactions
Market Opportunity for Cloud-Based Transactions Sources: Celent, CEB TowerGroup, Ovum Billions Billions Billions Billions CAGR = 27% CAGR = 26% CAGR = 17%
Slide 51: Merchant Retailer Opportunity
Anal Merchant Retailer Opportunity UP Merchant Payments ANYTIME ANY PAYMENT ANYWHERE
Slide 52: Biller Opportunity
Anal Biller Opportunity SOLUTION enhancements PARTNER relationships CROSS-SELL opportunity
Slide 53: Financial Institution Opportunity
Anal Financial Institution Opportunity UP Immediate Payments UP Retail Payments Digital Banking
Slide 54: Award-winning payments and fraud management capabilities
Award-winning payments and fraud management capabilities Industry recognized Best-in-class Fraud Tool and Ranked #2 of the Top 25 cross-border payment and providers International Award 2016 Cash Management Vendor Evaluation Universal Online Banker Best Payments Flexibility, Open Architecture And Lar
Slide 55: Customers Recognize Benefits of the ACI Cloud
Customers Recognize Benefits of the ACI Cloud 88% of surveyed customers saw benefits within the first six months or less after deploying their ACI cloud solution.
Slide 56: ACI On Demand Investment Drives Growth
Anal ACI On Demand Investment Drives Growth DATA CENTERS SOLUTIONS SECURITY & RISK TALENT & EXPERTISE AOD Investment $
Slide 57: ACI On Demand: Poised for Success
ACI On Demand: Poised for Success GROWING MARKET STATE-OF-THE-ART DATA CENTERS AWARD-WINNING TECHNOLOGY INVESTMENT TO SUPPORT GROWTH AOD
Slide 58: ACI On Demand Business Leaders
Markus Rinderer Mike Braatz ACI On Demand Business Leaders
Slide 59: Cross-border, Currency and Mobile in One Solution
Cross-border, Currency and Mobile in One Solution Cross-border processing in 85+ currencies Expanded mobile offering via mobile SDKs PCI-compliant payment forms Challenge: Legacy systems constrained geo and channel growth
Slide 60: Case Study: Leading Global Gaming Company
Case Study: Leading Global Gaming Company Acquirer independence Increased conversion rates Cost savings One of U.S.’s Largest eGaming Platforms Growing revenue and saving costs Confidential
Slide 61: IACI piers
IACI piers
Slide 62: Delivering Real-World Results
Delivering Real-World Results 90% debit/DDA fraud reduction in 3 years Sophisticated use of real-time rules + advanced analytics Top 10 North American Bank Debit card/DDA fraud management and merchant monitoring Confidential
Slide 63: Case Study: Domino's
Case Study: Domino’s Enabling Omni-Channel Support for anytime, anywhere ordering Tokenized data across channels Scalable model for peak volumes Initiative: Securing payments in physical and digital channels offering consumer choice
Slide 64: Immediate Payments: A Global Roundtable Discussion
Immediate Payments: A Global roundtable Discussion
Slide 65: The Opportunity: Immediate Payments Around the Globe
Major markets adopting real-time payments The Opportunity: Immediate Payments Around the Globe Live In development In discussion / design
Slide 66: Roundtable Panelists
Adam Jordan Product Owner, Domestic Payments, Westpac Rob Louwerse Project Manager, Instant Payments, Rabobank Immediate Payments: A Global Roundtable Discussion Deborah Matthews Phillips Managing Director, Payment Strategy, Jack Henry & Associates PANELISTS
Slide 67: Q&A
UNIVERSAL, I AC PAYMENTS. Q&A
Slide 68: Forward-Looking Statements
This presentation contains forward-looking statements based on current expectations that involve a number of risks and uncertainties. Generally, forward-looking statements do not relate strictly to historical or current facts and may include words or phrases such as “believes,” “will,” “expects,” “a
Slide 69: Forward-Looking Statements Risk Factors
All of the foregoing forward-looking statements are expressly qualified by the risk factors discussed in our filings with the Securities and Exchange Commission. Such factors include, but are not limited to, increased competition, the success of our Universal Payments strategy, demand for our produc