ACI Worldwide, Inc. · NASDAQ:ACIW
ACI Worldwide — Wedbush Morgan Securities Management Access Conference 2009
37 slides from ACI Worldwide's conference presentation, Mar 12, 2009
Slide 1: Wedbush Morgan Securities Management Access Conference
Wedbush Morgan Securities Management Access Conference March 12, 2009 New York City
Slide 2: Safe Harbor For Forward-Looking Statements
Private Securities Litigation Reform Act of 1995 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 provision
Slide 3: Business Review
Ron Totaro, Chief Operating Officer Business Review
Slide 4: Topics
Topics • Our Product Portfolio • Market Environment • Customer by Type • Sales Results • Geographic Channels • Financial Metrics 4
Slide 5: ACI Product History
ACI Product History BASE24-eps BASE24-eps Automated Automated Case Case ON/2 ON/2 Management Management OpeN/2 OpeN/2 OCM24 OCM24 Payments Payments ASSET ASSET Manager Manager TRANS24 TRANS24 MTS MTS Enterprise Enterprise BASE24-atm BASE24-atm Enrollments Enrollments Network Network Express Trade Tr
Slide 6: ACI Product Portfolio
ACI Product Portfolio ACI Retail Payments Solution ACI Wholesale Payments Solution Payments Hubs Payments Hub – BASE24 – MTS-eps – BASE24-eps Online Banking – ACI Commerce Gateway – ACI Enterprise Banker – ACI Retail Commerce Server Trade Finance Payment Settlement and Card Management – ACI Global T
Slide 7: ACI Product Direction vis a vis the EPS Hub
ACI Product Direction vis a vis the EPS Hub: • SOA-based solution and architecture • Convergence of Wholesale, Retail and Risk Management Payment services Risk Management • Easy integration with the financial Solution institution’s enterprise infrastructure Retail Wholesale • Long-term vision for AC
Slide 8: BASE24-eps
BASE24-eps Functionality / Market Served Key Competitors • Provides an end-to-end solution for the acquisition, • Software Providers authorization and recording of consumer based electronic – S1 payments – Fidelity (eFunds) • High volume, high availability, multi-platform transaction – Regional (Ala
Slide 9: PRM
PRM Functionality / Market Served Key Competitors • Provides an end-to-end solutions for real-time and • Fair Isaac enterprise payments risk management: Fraud Detection • Actimize and Money Laundering Detection • Norkom • Transaction monitoring solution to detect fraudulent and • Fortent money laund
Slide 10: Enterprise Banker
Enterprise Banker Functionality / Market Served Key Competitors • An online banking product that supports all market • S1 segments, from consumer to large corporate customers • Fundtech • Real-time and batch balance and transaction reporting, • Intuit/DI with images, online statements • ACH originat
Slide 11: Base 24 Classic Sunset Announced in 2008
Base 24 Classic Sunset Announced in 2008 • SUNSET was announced in March 2008 – Not End-of-Life announcement – Sunset will be effective in November 2011 • Sunset means: – Standard maintenance will increase significantly – We still fix product defects – Enhancements must be customer-funded – Mandates
Slide 12: BASE24-eps - Ready for Primetime
BASE24-eps - Ready for Primetime • Licensed over 70 times (new accounts, new apps) • Live over 35 times • Live in many different operating environments – ATM driving, merchant acquiring, switching, merchant retail, multi-channel • Live on all of our supported platforms And now, with version 8.2, opt
Slide 13: Hub Strategy: Retail Payments Hub
In 2008 we began moving towards a Hub Strategy Example: A Retail Payments Hub Transaction Integrated Retail Payments Channels Processing Hub External External Networks Networks and and ATM ATM Transaction Transaction Acquiring Acquiring Hosts Hosts • Customer and device • Message authentication tran
Slide 14: General Market Update
General Market Update • Financial crisis has spread to most markets • Cost pressures on our customers lead to product sales opportunities – Inefficient technologies and processes – Exacerbated by M&A activity seen over past half year • Heavy focus on compliance, fraud and risk management – Good for
Slide 15: Market Trends and Drivers
Market Trends and Drivers • U.S. credit crisis leads to extreme focus on ROI, and accelerated M&A • Continued desire to reduce costs and increase productivity – Need for end-to-end solutions – Need for platform and solutions convergence – Need to automate manual, cumbersome processes – ACI will driv
Slide 16: Customer Revenue by Industry Type
Customer Revenue by Industry Type Industry Type CY 2008 Revenue % Finance 288,144 69% Banks, mainly Tier 1 & 2 Other 10,419 2% Healthcare, Colleges, Government, Social Svcs, etc Processor 90,842 22% Processors and Credit Card companies Retail 28,248 7% Retail Grand Total 417,653 100% Industry Type P
Slide 17: Q4 2008 Sales Results
Q4 2008 Sales Results Sales Type Product Division Qtr. Ended Qtr. Ended % Growth or Qtr. Ended Qtr. Ended % Growth or Sales Type Dec. 08 Dec. 07 Decline Product Division Dec. 08 Dec. 07 Decline New Account 16,490 17,665 -7% Retail Payments 134,273 77,670 73% New Application 17,014 13,721 24% Applica
Slide 18: Historic Sales By Quarter 2007-2008
Historic Sales By Quarter 2007-2008 Sales Mix by Category Add-on Business inc. Capacity Total Economic Value of Upgrades & Quarter-End Sales New Accounts New Applications Services Term Extentions 3/31/2007 $125,480 $20,333 $18,295 $43,192 $43,660 16% 15% 34% 35% 6/30/2007 $85,220 $7,780 $12,048 $49,
Slide 19: Americas Q4/Year in Review
Americas Q4/Year in Review • Q4 Revenue of $57.8 million, an increase of 16% over Q4 2007 driven by two large term renewals • Annual revenue of $207.4 million, an increase of 5% over prior year • Sales in the year were very strong – New business sales up 14% year-over-year – Term extension sales fla
Slide 20: 2009 Opportunities- Americas
2009 Opportunities- Americas • North American Banks – Top bank ATM systems currently on processors – Hub consolidation and cross-sell – Online banking consolidation – Risk Management cross-sell and upsell – Wholesale payments in Canada • North American Retailers – Replace redundant, fragmented legac
Slide 21: EMEA Q4/Year in Review
EMEA Q4/Year in Review • Q4 Revenue of $39.5 million, a decrease of 8% over Q4 2007 revenue of $43.1 million largely due to FX impact of approximately $5-6 million – Q4 Major Term Extensions in Italy and Slovakia – Q4 Large Services deals at El Corte Ingles and HBOS for Base24-eps • Annual Revenue o
Slide 22: 2009 Opportunities- EMEA
2009 Opportunities- EMEA • BASE24-eps – Focus on Tier 1 migrations and new names • Payments HUB consolidation opportunities • Build Operate Transfer model creates opportunity during a difficult economic climate and with major M&A activity • Wholesale focus on SEPA-express with market regulations dri
Slide 23: Asia-Pacific Q4/Year in Review
Asia-Pacific Q4/Year in Review • Q4 revenue of $12.0 million, an increase of 40% due to wholesale service customers – Term extension contracts signed for AP's 2 largest revenue customers. – Two new customers – 1st PRM license on IBM System Z in the world – Significant capacity contracts in China, In
Slide 24: 2009 Opportunities- Asia
2009 Opportunities- Asia • North Asia is the growth opportunity – Japan upgrading retail/wholesale infrastructure – China banks looking for payment hubs & upgrade risk • India volumes continue to grow – Indian banks rapidly extend coverage in consumer payments • Australia consolidates – Drives urgen
Slide 25: Cost Management
Cost Management • Annualized gross cost savings of $30 million achieved in 2008 • Rationalized headcount in mature markets and reinvested in growth regions • A further $8 million in cost savings which will complete restructuring in 2009 • Approximately $11.5 million to be re-invested in products, se
Slide 26: Financial Review
Financial Review Tamar Gerber, Vice President, Investor Relations
Slide 27: Financials- Year in Review
Financials- Year in Review Total Revenue Total Expense 120,000 120,000 100,000 100,000 80,000 80,000 60,000 60,000 40,000 40,000 20,000 20,000 - - Q4 '07 Q1 '08 Q2 '08 Q3 '08 Q4 '08 Q4 '07 Q1 '08 Q2 '08 Q3 '08 Q4 '08 Quarter Quarter Op. Exp. Non-Recurring Quarter Quarter Q4 '07 Q1 '08 Q2 '08 Q3 '08
Slide 28: Backlog is Still a Significant Contributor to current period Revenue
Backlog is Still a Significant Contributor to current period Revenue Revenue Qtr. Ended Qtr. Ended % Growth or Revenue Dec. 08 Dec. 07 Decline Revenue from Backlog 88,838 88,108 1% Revenue from Sales 20,373 13,175 55% Total Revenue 109,211 101,282 8% Revenue from Backlog 81% 87% Revenue from Sales 1
Slide 29: OFCF Walk Q4 2007 vs Q4 2008
OFCF Walk Q4 2007 vs Q4 2008 CY Q4 2007 Cash Payroll Capital Cash Taxes Non-Recurring Alliance Exp. / CY Q4 2008 OFCF Receipts Alliance Receipts Expenditures Expenditures Paid / Rec'd Items Other (net) OFCF 40MM 9.7 (8.7) 1.5 (0.4) 31.1 3.2 0.9 30MM 3.8 21.1 20MM 10 MM • Cash Receipts – Stronger AR
Slide 30: Operating Free Cash Flow 2007-08-09
Operating Free Cash Flow 2007-08-09 70,000 ACIW Operating Free Cash Flow ex. IBM $65MM ACIW Operating Free Cash Flow 60,000 $53MM 50,000 $43MM $35 - $40MM 40,000 $25 - $30MM $29MM 30,000 20,000 10,000 0 2007 Actual 2008 Actual 2009 Estimate In $ Thousands 2007 Actual 2008 Actual 2009 Estimate GAAP C
Slide 31: Performance versus 2008 Guidance
Performance versus 2008 Guidance Key Metrics 2008 Actuals 2008 Guidance Prior Year Actuals OFCF $65 $45-50 $53 Sales 460 430-440 433 Rev-Log 62 190-195 157 • Exceeded OFCF expectations due to – Stronger than expected cash collections on a global basis – $3 million tax refund in Canada • Achieved $46
Slide 32: 2009 Guidance
2009 Guidance Key Metrics 2008 Actuals 2009 Guidance Sales $460 $450-460 Revenue 418 415-425 GAAP Operating Income 22 35-40 Sales are at a constant September 2008 budgeted FX rate of $:£ 1:1.82, $:€ 1:1.44 Revenue & GAAP Operating Income at 1/30/2009 prevailing FX Rates of $:£ 1:1.43, $:€ 1:1.29 • S
Slide 33: Forward-Looking Statements
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 “belie
Slide 34: Forward-Looking Statements
Forward-Looking Statements Any or all of the forward-looking statements may turn out to be wrong. They can be affected by the judgments and estimates underlying such assumptions or by known or unknown risks and uncertainties. Many of these factors will be important in determining the Company’s actua
Slide 35: Forward-Looking Statements
Forward-Looking Statements • Risks associated with the restatement of the Company’s financial statements; • Risks associated with the Company’s performance which could be materially adversely affected by a general economic downturn or lessening demand in the software sector; • Risks associated with
Slide 36: Forward-Looking Statements
Forward-Looking Statements • Risks associated with the outsourcing arrangement with IBM which may not achieve the level of savings that we anticipate and, because the arrangement involves changes in systems and personnel, may expose the Company to operational and control risks which could adversely
Slide 37: IMAI
IMAI EVERY SECOND. EVERY DAY. 37
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