ACI Worldwide 8K Investor Conferences | ACIW 6 Mar 12

March 2012

ACI Worldwide Investor Conferences

Exhibit 99.1

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 provisions

of the Private Securities Litigation Reform Act of 1995. A discussion of

these forward-looking statements and risk factors that may affect them is

set forth at the end of this presentation. The Company assumes no

obligation to update any forward-looking statement in this presentation,

except as required by law.

Business overview

ACI Worldwide: A Global Payments Company

Regional Offices

Distributors/Sales Agents

AMERICAS

1150+ customers

EMEA

390+ customers

ASIA/PACIFIC

150+ customers

~ 1,700 customers in over 80 countries rely on ACI solutions

3500

employees

Rev CY2012 G

= $701M

Adj EBITDA CY 2012G

= $168M

month

backlog

Dec 2011 = $2.3B

Customers: ~ 170

processors globally

Customers: ~ 265

retailers globally

ACI is a Leading Provider of Enterprise Payments and

Transaction Banking Solutions

Retail Payments

48%

Online Banking

22%

•

Retail payments engines

•

Card and account management

•

Authentication, authorization,

acquiring, clearing and settlement

•

Single message format

•

Mobile payments

•

Sold to FIs and processors of all

sizes globally

Retail Payments

•

U.S. and int’l corporate online

banking and cash management

•

U.S. and Int’l branch systems

•

Trade finance

•

Mobile banking

•

In-house or hosted solution

•

Sold to Large FIs

Online Banking

•

U.S. business and consumer online

banking

•

U.S. branch system

•

Mobile banking

•

Hosted solutions

•

Sold to community FIs and credit

unions

Community Banking

•

U.S. and int’l merchant retail

payments engines

•

In-store integration

•

PCI compliance

•

Loyalty / stored value

•

Serves Retailers of all sizes

Merchant Retail Payments

•

Analytics

•

Payments Infrastructure

•

Testing tools

Tools

•

Wholesale payments engines

•

Transaction banking

•

Trade finance

•

Serves FIs globally

Wholesale Payments

•

Payments transaction fraud

•

Enterprise financial crimes

•

Case management

Fraud Management

ACI Product Family as % of Revenue

Rich set of Product Capabilities

Strong focus on Product

Development (R&D ~20% of

revenue)

Our Customers Are Top Global Banks, Processors

and Retailers

Large and Growing Worldwide Payment Opportunity

Source: IDC Financial Insights 2011, ACI Internal Analysis

8,949

9,864

10,881

11,914

12,989

14,184

5.8%

10.6%

10.5%

10.2%

7.7%

7.2%

796

5,625

556

604

381

987

844

6,259

619

644

429

1,068

898

6,965

688

691

483

1,155

957

7,695

760

744

510

1,247

1,005

8,456

834

796

562

1,335

1,057

9,307

916

854

619

1,430

Retail Banking

Payments

Merchant Retailer

Payments

5YR CAGR (2011-16)=

9.6%

Wholesale Banking

Payments

Source: IDC Financial Insights, June 2011; Company reports and ACI analysis

BPO (e.g..

processors)

IT SERVICES

SOFTWARE

16%

38%

46%

OTHER

(Homegrown &

Regional)

IBM

ACI –

2011

Estimated Share of 8%

FAIR ISAAC (FICO)

INTUIT (Digital

Insights)

SAS

Tools and

Infrastructure

Online Banking and

Cash Management

Fraud Management

Note: ACI market share pro forma for S1 acquisition

2011 ESTIMATED SHARE

SERVICEABLE SOFTWARE

INDUSTRY SPEND IN 2016 = $14.2B

($ in millions)

FundTech

Bottomline

NICE (Actimize)

BAE (Norkom & Detica)

Clear2Pay

Dovetail

FIS

Customer Trends

Continued Shift to

Electronic Payments

Customer Focus on

Improved Efficiency

and Risk

Management

Replacement of

Legacy Systems

Regulatory

Requirements

Financial Industry

Consolidation

•

Global retail and wholesale transaction volumes are expected to grow at a

9-10% CAGR through 2020

•

E-payments vendors are increasingly investing in robust, scalable

architecture with enhanced straight -through processing capabilities to

reduce errors and prevent fraud

•

Many large financial institutions process electronic payments on

legacy

software and systems developed by internal IT departments

•

Financial institutions will upgrade or replace their existing systems with the

robust, scalable solutions third-party vendors provide as industry IT

investment recovers

•

Dodd-Frank bill, Basel II and SEPA

•

Requirements to upgrade existing systems to manage enterprise risk and

reduce cross-border payments costs

•

Large financial institutions desire to simplify their vendor relationships

•

Vendors with a complete set of solutions across the enterprise are poised

to capitalize on their existing relationships for cross-selling opportunities

ACI / S1 –

Compelling Strategic Rationale

•

Closed the acquisition of S1 Corporation in February 2012

•

Combination

creates

industry

leader

financial

and

payments

software

serving financial institutions (“FI”), processors and merchant retailers

worldwide

•

Summary pro forma financials are compelling

–

Approximately $701 million in combined 2012E Revenue (1)

–

Approximately $168 million in combined 2012E Adj. EBITDA, including cost synergies (1)

–

Annual cost synergies of $30 million

•

Complementary products and customers expand breadth and features/functions

•

Enhanced global product capabilities to expand growth opportunities

•

Greater scale and cost synergies to drive margin expansion and earnings

accretion

Note:

(1) 2012E pro forma combined ACI + S1 financial results are before one-time transaction expenses.

Financial overview

Sales and Revenue Model

•

New

Account

New

Product

Sales

–

revenue

generally split evenly among license, maintenance

and service

•

Term Extensions –

50% license, 50%

maintenance

•

99% of our organic contracts are fixed term, 5

years

•

95% of our contracts are Transaction Based (TBP)

•

Average initial license fee (ILF) is 25% to 35% of

total license fee value

•

40% to 50% of annual sales are derived from up-

selling existing customers (incremental capacity,

services and add-on modules)

•

Continued growth in backlog yields increased

forward revenue visibility

•

Higher margin recurring revenues (maintenance,

license and hosting fees) comprise majority of 60-

month backlog

•

Lower margin implementation services more

significant in first 12 months

•

Renewal rates across all products > 96% with

near zero attrition on BASE24 product line

Sales / Bookings

Historical 60-Month Backlog

(as of December 31

)

$1,388

$1,407

$1,517

$1,555

$2,302

$1,617

$685

2007

2008

2009

2010

PF 2011

ACI

$323

$136

$433

$460

$425

$525

$556

$330

$315

$293

$304

$226

$210

$132

$130

2007

2008

2009

2010

2011

Sales, Net of Term Extensions

Term Extensions

($ in Millions)

Revenue from Backlog vs. Sales

•

Backlog from monthly recurring revenues and project go-lives continues to drive annual

GAAP revenue, leading to more predictable performance and less reliance on current

period sales bookings to meet revenue targets

Revenue

Revenue ($M)

Yr Ended

Dec 07

Yr Ended

Dec 08

Yr Ended

Dec 09

Yr Ended

Dec 10

Yr Ended

Dec 11

Organic

2012G

Revenue from

Backlog

293

336

325

355

381

424

Revenue from

Backlog

78.0%

80.0%

85.0%

82.0%

86.0%

Revenue from

Sales

Revenue from

Sales

22.0%

20.0%

15.0%

18.0%

14.0%

Total Revenue

374

418

406

418

465

495

Calendar Year Revenue Mix

$374

$418

$406

$465

$701

$418

Note: Amounts represent reported FX rates and are not reflective of FX movements between reporting periods

•

Improved monthly

recurring from 59% to

67% of annual revenue

•

Non-recurring license fees

include annual license fees

representing

approximately 5% of total

revenue resulting in

annual recurring revenue

in excess of 70%

•

Beginning contracted

backlog represents

approximately 85% of

forward revenue guidance

($ in Millions)

17%

24%

59%

20%

23%

57%

19%

21%

60%

17%

15%

68%

17%

16%

67%

100

200

300

400

500

600

CY 2007

CY 2008

CY 2009

CY 2010

CY 2011

CY 2012

Recurring Revenue

Non-Recurring License Fees

Non-Recurring Services

Diversified Revenue Base by Geography and Type

•

Diversified global company with

customers spanning ~ 80 countries

•

Approximately 75-80% of business

denominated in U.S. dollars in spite of

geographic scope

•

Higher margin recurring revenues

(maintenance, license and hosting fees)

comprise nearly 80% of revenue

•

Lower margin implementation services

represent approximately 20% of

revenue

Revenue by Region

Revenue by Type

Americas

58%

EMEA

31%

11%

Asia/ Pacific

Hosting

14%

Licenses

33%

Services

23%

Maintenance

30%

Operating Income and Adjusted EBITDA 2007-2012

•

2011 and 2012 Operating Income and Adjusted EBITDA exclude one-time expenses

related to the acquisition of S1 Corporation but include impact of the $12 million

deferred revenue haircut

•

Stated

target

margins

>20%

operating

margin

and

>30%

Adjusted

EBITDA

over

planning horizon

Operating Income

Adjusted EBITDA

($ in Millions)

$101

ACI / S1 –

2012 Guidance

•

ACI 2012E represents midpoint of organic Guidance

•

Combined Guidance before one-time transaction expenses:

–

Represents 10½

months of financial results of S1

–

State Farm custom project completed in 2011 (revenue of ~$17 million in 2011)

–

Includes annual cost synergies of $23 million to be realized in 2012

–

Includes estimates for non-cash purchase accounting adjustments (assumes deferred

revenue haircut of $12M)

•

Before purchase accounting, combined adjusted EBITDA margin in-line with ACI organic margins

•

Fully diluted shares outstanding of approximately 40 million at close

($ in Millions)

Standalone

ACI

Revenue

495

696

706

Adjusted EBITDA

127

165

170

Margin %

26%

24%

Operating Income

104

Margin %

17%

14%

15%

Combined Guidance before

One-Time Trans. Exps.

Non-GAAP Financial Measures

ACI

includes

backlog

estimates

which

are

all

software

license

fees,

maintenance

fees

and

services

specified

executed

contracts,

well

revenues

from

assumed

contract

renewals

the

extent

that

believe

recognition

the

revenue

will

occur

within

the

corresponding

backlog

period.

have

historically

included

assumed

renewals

backlog

estimates

based

upon

automatic

renewal

provisions

the

executed

contract

and

our

historic

experience

with

customer

renewal

rates.

Backlog is considered a non-GAAP financial measure as defined by SEC Regulation G.

Our 60-month backlog estimate represents expected revenues from existing customers

using the following key assumptions:

•

Maintenance fees are assumed to exist for the duration of the license term for those contracts in

which the committed maintenance term is less than the committed license term.

•

License and facilities management arrangements are assumed to renew at the end of their committed

term at a rate consistent with our historical experiences.

•

Non-recurring license arrangements are assumed to renew as recurring

revenue streams.

•

Foreign currency exchange rates are assumed to remain constant over the 60-month backlog period

for those contracts stated in currencies other than the U.S. dollar.

•

Our pricing policies and practices are assumed to remain constant over the 60-month backlog period.

Estimates

future

financial

results

are

inherently

unreliable.

Our

backlog

estimates

requi

substantial

judgment

and

are

based

number

assumptions

described

above.

These

assumptions

may

turn

out

inaccurate

wrong,

including

for

reasons

outside

management’s

control.

Non-GAAP Financial Measures

For example, our customers may attempt to renegotiate or terminate their contracts for a number of reasons,

including mergers, changes in their financial condition, or general changes in economic conditions in the

customer’s industry or geographic location, or we may experience delays in the development or delivery of

products or services specified in customer contracts which may cause the actual renewal rates and amounts to

differ from historical experiences.

Changes in foreign currency exchange rates may also impact the amount of revenue actually recognized in

future periods. Accordingly, there can be no assurance that contracts included in backlog estimates will actually

generate

the

specified

revenues

that

the

actual

revenues

will

generated

within

the

corresponding

60-

month period. Backlog should be considered in addition to, rather than as a substitute for, reported revenue and

deferred revenue.

ACI also includes Adjusted EBITDA, which is defined as net income (loss) plus income tax expense, net interest

income (expense), net other income (expense), depreciation and amortization and non-cash

compensation.

Adjusted EBITDA is considered a non-GAAP financial measure as defined by SEC Regulation

Adjusted EBITDA should be considered in addition to, rather than as a substitute for, operating income

(loss).

Adjusted EBITDA

(millions)

2011

2010

2009

2008

2007

Net income (loss)

$52.6

$27.2

$19.6

$10.6

($13.8)

Plus:

Income tax expense

18.5

21.5

13.5

17.0

7.7

Net interest expense

1.1

1.3

1.8

2.4

2.6

Net other expense (income)

0.8

3.6

6.6

(8.2)

3.8

Depreciation expense

7.5

6.7

6.3

6.5

6.0

Amortization expense

20.8

19.7

17.4

15.5

14.8

Non-cash compensation expense

11.3

7.8

7.6

7.9

5.8

Adjusted EBITDA

$112.6

$87.8

$72.8

$51.7

$26.9

Calendar Year Ended December 31,

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

“believes,”

“

will,”

“expects,”

“anticipates,”

“intends,”

and words and phrases of similar impact. The forward-looking statements

are made pursuant to safe harbor provisions of the Private Securities Litigation Reform Act of 1995.

Forward-looking statements in this presentation include, but are not limited to, statements regarding:

•

Expectations

and

assumptions

regarding

the

recent

acquisition

relating

(i)

creating a

worldwide industry leader in financial and payments software serving FIs, processors and merchant

retailers, (ii) creating compelling pro forma financials, (iii) complementary products and customers

expand breadth and features/ functions, (iv) enhanced global product capabilities to expand growth

opportunities and (v) greater scale and cost synergies to drive margin expansion and earnings

accretion;

•

Expectations related to 2012 customer trends including expectations and assumptions regarding (i)

growth in global retail and wholesale transaction volumes, (ii) investment in robust, scalable

architecture with enhanced straight-through processing capabilities to reduce errors and prevent

fraud, (iii) replacement of existing systems with robust, scalable third-party vendors, (iv) upgrade

existing systems to manage risk and reduce cross-border payments costs, (v) simplification of

vendor relationships and (vi) vendors poised to capitalize on existing customer relationships leading

to cross-selling opportunities;

•

The company’s 12-month and 60-month backlog estimates and assumptions, including our belief

that backlog from monthly recurring revenues and project go-lives will continue to drive current

quarter GAAP revenue and lead to predictable performance; and

•

Expectations and assumptions regarding (i) ACI/S1 combined 2012 financial guidance related to

revenue, operating income and adjusted EBITDA and (ii) expectations and assumptions regarding

other factors impacting our 2012 financial guidance.

Forward-Looking Statements

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, risks

related to the global financial crisis and the continuing decline in the global economy; volatility and

disruption

the

capital

and

credit

markets

and

adverse

changes

the

global

economy;

consolidations and failures in the financial services industry; increased competition; restrictions and

other financial covenants in our credit facility; the restatement of our financial statements; the

accuracy of management’s backlog estimates; impairment of our goodwill or intangible assets;

exposure to unknown tax liabilities; risks from operating internationally; our offshore software

development activities; customer reluctance to switch to a new vendor; the performance of our

strategic product, BASE24-eps; our strategy to migrate customers to our next generation products;

ratable or deferred recognition of certain revenue associated with customer migrations and the

maturity of certain of our products; demand for our products; failure to obtain renewals of customer

contracts or to obtain such renewals on favorable terms; delay or cancellation of customer projects or

inaccurate project completion estimates; business interruptions or failure of our information

technology and communication systems; our alliance with International Business Machines Corporation

(“IBM”); the complexity of our products and services and the risk that

they may contain hidden

defects or be subjected to security breaches or viruses; compliance of our products with applicable

legislation, governmental regulations and industry standards; our compliance with privacy regulations;

the protection of our intellectual property in intellectual property litigation; future acquisitions,

strategic partnerships and investments and litigation; the risk that expected synergies, operational

efficiencies and cost savings from our recent acquisition of S1 Corporation (“S1”) may not

fully

realized

within

the

expected

timeframe;

the

cyclical

nature

our

revenue

and

earnings and the accuracy of forecasts due to the concentration of revenue generating activity during

the final weeks of each quarter; and volatility in our stock price. For a detailed discussion of these

risk factors, parties that are relying on the forward-looking statements should review our filings with

the Securities and Exchange Commission, including our most recently filed Annual Report on Form 10-

K and subsequent reports on Forms 10-Q and 8-K.

ACI’s software underpins electronic

payments throughout retail and

wholesale banking, and commerce all

the time, without fail.

ACI Worldwide (ACIW) 8-KACI Worldwide Investor Conferences