ACI Worldwide (ACIW) 8-K ACI Worldwide Investor Conferences

Spring 2014

ACI Worldwide Investor Conferences

Spring, 2014

Exhibit 99.1

Spring 2014

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.

1

Spring 2014

About ACI Worldwide

•

High quality products and services drive strong renewal

rates on a large installed user base of over 5,000 customers

•

Long-term, blue-chip, geographically diverse customer base

with low customer concentration

•

Subscription-based model drives recurring revenue and

provides stability and predictability to our operations

•

Large contractual backlog provides earnings visibility and

allows our management to optimally manage the size and

infrastructure of the business

•

Leading payments transformation with Universal Payments

(UP)

•

Management team has an established track record of

operational excellence and significant industry experience

2013

Pro Forma Revenue

$1023 Million

2013

Pro Forma Adjusted EBITDA

$273 Million

12/31/2013

60-Month Backlog

$3.9 Billion

Founded in 1975,

ACI is a leading

provider of

electronic

payments and

transaction banking

software solutions

for financial

institutions,

retailers,

processors and

billers worldwide

Note: Pro Forma Revenue is presented on a Non-GAAP basis that adds back the Deferred Revenue Fair

Value

Adjustment.

Pro

Forma

Adjusted

EBITDA

excludes

transaction

and

litigation

expenses.

Both

metrics

are

presented

on

a

pro

forma

basis

for

the

ORCC

and

OPAY

acquisitions.

2

Spring 2014

Global Distribution and Customer Base:

The Leader in the Mega and Large FIs Market

Headquarters          Regional Offices          Distributors

AMERICAS

1,950+ customers

EMEA

500+ customers

ASIA/PACIFIC

150+ customers

5,000+

customers

in

over

80

countries

rely

on

ACI

solutions

Customers: ~ 180

processors globally

Customers: ~ 290

retailers globally

Customers: 3600+

US billers

18 of the top 20 and 67 of the top 100 global banks are customers

~ 4,500

employees in 36 countries

3

Spring 2014

ACI is a Leading Provider of Electronic Payments and Transaction

Banking Solutions

•

Tools to prevent payment transaction

fraud and enterprise financial crimes

•

Case management

Fraud

•

Internet-based electronic bill payment and

presentment

•

Transaction-based, hosted services for

banks and billers

•

Automated collection application

Bill Pay / Collections

•

Consumer and Business Internet Banking,

Mobile, Trade Finance and Branch

Automation sold to large banks globally as

license or hosted subscription services

•

Consumer and small biz Internet and

mobile banking sold to US community FIs

and credit unions as hosted, subscription

Online Banking

•

Software sold to global banks that enables

the providing of treasury services to large

corporates

•

High value wire transfers, Low Value Bulk

Payments and SWIFT messaging

Wholesale Payments

•

Software sold directly to banks and

payment processors

•

Solutions help authenticate, authorize,

acquire, clear and settle electronic

consumer payments

•

Payments acquiring and authorization

solution for retailers

Retail Payments

1

Financial Insights -

Worldwide Payments Market Sizing 2012 and 3rd

Party Consultant

Note: Revenue figures represent Pro Forma FY 2013 GAAP Revenue on a pro forma basis for the ORCC

and OPAY acquisitions.

ACI Product Family Revenue %

Highlights

In a highly fragmented

market, we control 6%

of the market spend¹

Software facilitates over

120 billion consumer

transaction per year;

scales to thousands per

second

~1/3 of all domestic

SWIFT transactions

Enables over $13 trillion

in payments each day

Software designed for

“Five nines availability”

2/3 of all Fed wires

4

Spring 2014

Diverse Customer Base of Top Global Banks, Processors, Billers and

Retailers Provide Significant Cross Sell Opportunities

FY 2013 Revenue by Customer

No single customer represents more than 3%

of consolidated revenue

On average, customers use 3 ACI products or

less representing a large cross sell opportunity

Note: Revenue figures represent Pro Forma FY 2012 GAAP Revenue on a pro forma basis for the ORCC

and S1 acquisitions.  Figures exclude OPAY contribution.

5

Spring 2014

Attractive trends will drive growth opportunities for ACI

1

Source: Financial Insights -

Worldwide Payments Market Sizing 2012 and 3rd Party Consultant

2

Source: McKinsey “Dynamic Changes in the Global Payments Industry”, 2012

Industry

Dynamics²

Customer

Trends

Market

Sizing¹

•

Shift from paper to electronic

•

Compounding regulatory

requirements

•

Revenue and profitability pressures

•

Complexity from globalization

FIs looking to transform their businesses by:

•

Driving down unit costs

•

Launching new products quicker

•

Reducing risks

•

Improving customer satisfaction and loyalty

•

Vendor Consolidation

•

Total addressable market is ~$20bn in 2013 and growing 7-8% overall

•

~50% of addressable market is in-sourced (homegrown) applications

•

Global transaction volume growth expected to be 9% CAGR through 2020

•

Increasing fraud costs

•

Convergence of payments; real-time

•

Legacy systems increasingly difficult to

update

Favorable Industry and Customer Trends

6

Spring 2014

Strategy to Drive Superior Performance

Continued Focus on Control, Profitability and Growth

•

Continue to increase recurring revenue base

•

Expand customer relationships by cross-selling (on average customers

use 3 ACI products or less)

•

Lead payments transformation with Universal Payments delivering

technology-enabled efficiencies

•

Expand geographically

Growth

Drivers

•

Expand margins through operating leverage and process-driven operating

philosophy

•

Realize cost synergies derived from recent acquisitions

Continuous

Improvements

to Drive Margin

Expansion

•

Buy, build or partner to fill-in product gaps or expand customer base

•

Recent acquisitions have added product, scale and market breadth

•

ORCC acquisition provides ACI with a full-service Bill Payment platform

for Online Banking and Billers

•

OPAY acquisition expands bill payment reach into key new verticals

incl. Federal, State & Local government, taxes and higher education

Disciplined

Acquisition /

Investment

Strategy

7

Spring 2014

Financial Overview

Spring 2014

$1,517

$1,566

$1,617

$2,416

$3,860

2009

2010

2011

2012

2013

2009

2010

2011

2012

2013

ACI Term

Extensions

$425

$525

$556

$766

$888

SNET 20% CAGR

$132

$210

$226

$265

$288

Renewal rates across ACI products >96%

>95% of our contracts are transaction-based

SALES BOOKINGS

HISTORICAL 60-MONTH BACKLOG

26% CAGR

(millions)

(millions)

Bookings Growth Leads to Large Backlog

Provides Revenue and Earnings Visibility

ACI Sales, Net of

Term Extensions

(SNET)

9

$600

$293

$315

$330

$501

Spring 2014

$406

$418

$465

$689

$871

$73

$88

$113

$191

$239

2009

2010

2011

2012

2013

NON-GAAP REVENUE

2009

2010

2011

2012

2013

ADJUSTED EBITDA

18%

21%

24%

28%

29%

Adjusted EBITDA

% Net Margin

21% CAGR

35% CAGR

(millions)

(millions)

2013 revenue geographic mix: 63% Americas, 26% EMEA and 11%

Asia Pacific

ACI’s Financial Summary

2009 –

2013

Note:  Net Margin based on net revenues, or gross revenues

adjusted for  $38 million in pass through interchange fees

10

Spring 2014

STRONG RECURRING REVENUE GROWTH

•

All components of non recurring revenue are seasonally stronger in the latter half of the year

•

Monthly recurring revenue is predictable and less seasonal

>70% Recurring Revenue

11

Spring 2014

SaaS Subscriptions and Transactions Contribution Up Sharply

2009 segment contribution

2013 segment contribution

•

SaaS Subscriptions & Transactions have grown from ~10% to over 40%

•

Overall monthly recurring revenues have grown from ~60% to over 70%

•

Note: 2013 percentages based normalized for ORCC and OPAY

Monthly recurring segments

Non recurring segments

12

SaaS

subscriptions

&

transactions,

10%

Maintenance,

32%

Services,

20%

Initial

licenses fees,

20%

Monthly

license fees,

18%

SaaS

subscriptions

&

transactions

41%

Maintenance

24%

Services

12%

Initial

licenses fees

14%

Monthly

license fees

9%

Spring 2014

$30

$63

$67

$24

$151

2009

2010

2011

2012

2013

OPERATING FREE CASH FLOW

2009

2010

2011

2012

2013

$10

$13

$19

$17

$33

CAPITAL EXPENDITURES

3%

3%

4%

3%

4%

% of Non-GAAP Revenue

Low capital expenditures needed to

maintain existing client base

ACI generates strong free cash flow

•

NOLs starting to contribute and cash

taxes much lower than GAAP

(millions)

(millions)

Low Cap Ex and Strong Cash Flow

13

Spring 2014

CUMULATIVE SHARE REPURCHASES

Average price $32/share

$156 million remains authorized

*YTD 2014 data as of February 26, 2014

2012 Includes $30m in IBM warrant purchases

Efficient Use of Cash -

Aggressive Share Repurchases

$409m

$1090m

14

Spring 2014

2014 Guidance

Guidance

•

Sales, net of term extension, growth in the upper single digits

•

Revenue and margin phasing by quarter consistent with seasonal history

•

Q1 revenue expected to represent $220 -

$230 million

Other assumptions:

•

Interest expense of $35 million and cash interest of $30 million

•

Capital expenditures to be $35-$40 million

•

Depreciation and amortization expected to approximate $88 -

$92 million

•

Non-cash compensation expense of approximately $18 -$20 million

•

Pass through interchange revenues in the range of $120 -

$125 million

•

GAAP tax rate of 35% and cash taxes paid of $30-$35 million

•

Diluted share count to approximate 40 million

•

Guidance does not assume future share buy-back activity

•

These metrics exclude approximately $13-$15 million in one-time integration related expenses

and $2 million of deferred revenue haircut

•

Guidance assumes estimates for non-cash purchase accounting adjustments, intangible

valuations and deferred revenue haircut

Key Metrics

2013 Actual

2014 Guidance

Low

High

Non-GAAP Revenue

$871

$1,060

$1,080

Adjusted EBITDA

$239

$290

$300

$s in millions

15

Spring 2014

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

•

Sales net of term extension growth –

High single digits

16

Spring 2014

High Quality Software Model Drives Superior Performance

•

Leading market position

•

High retention and renewal rates

•

Pricing power and large barriers to entry

•

Significant recurring revenue

•

Scalable model with improving margin

•

Low cash investment required

•

Strong cash flow and balance sheet

•

Value enhancing capital allocation

17

Spring 2014

To

supplement

our

financial

results

presented

on

a

GAAP

basis,

we

use

the

non-GAAP

measure

indicated

in

the

tables,

which

exclude

certain

business

combination

accounting

entries

related

to

the

acquisitions

of

Official

Payments,

Online

Resources

and

S1

and

significant

transaction

related

expenses,

as

well

as

other

significant

non-cash

expenses

such

as

depreciation,

amortization

and

share-based

compensation,

that

we

believe

are

helpful

in

understanding

our

past

financial

performance

and

our

future

results.

The

presentation

of

these

non-GAAP

financial

measures

should

be

considered

in

addition

to

our

GAAP

results

and

are

not

intended

to

be

considered

in

isolation

or

as

a

substitute

for

the

financial

information

prepared

and

presented

in

accordance

with

GAAP.

Management

generally

compensates

for

limitations

in

the

use

of

non-GAAP

financial

measures

by

relying

on

comparable

GAAP

financial

measures

and

providing

investors

with

a

reconciliation

of

non-GAAP

financial

measures

only

in

addition

to

and

in

conjunction

with

results

presented

in

accordance

with

GAAP.

We

believe

that

these

non-GAAP

financial

measures

reflect

an

additional

way

of

viewing

aspects

of

our

operations

that,

when

viewed

with

our

GAAP

results,

provide

a

more

complete

understanding

of

factors

and

trends

affecting

our

business.

Certain

non-GAAP

measures

include:

•

Non-GAAP

revenue:

revenue

plus

deferred

revenue

that

would

have

been

recognized

in

the

normal

course

of

business

by

S1

and

Online

Resources

if

not

for

GAAP

purchase

accounting

requirements.

Non-GAAP

revenue

should

be

considered

in

addition

to,

rather

than

as

a

substitute

for,

revenue.

•

Non-GAAP

operating

income:

operating

income

(loss)

plus

deferred

revenue

that

would

have

been

recognized

in

the

normal

course

of

business

by

S1

and

Online

Resources

if

not

for

GAAP

purchase

accounting

requirements

and

significant

transaction

related

expenses.

Non-GAAP

operating

income

should

be

considered

in

addition

to,

rather

than

as

a

substitute

for,

operating

income.

•

Adjusted

EBITDA:

net

income

(loss)

plus

income

tax

expense,

net

interest

income

(expense),

net

other

income

(expense),

depreciation,

amortization

and

non-cash

compensation,

as

well

as

deferred

revenue

that

would

have

been

recognized

in

the

normal

course

of

business

by

S1

and

Online

Resources

if

not

for

GAAP

purchase

accounting

requirements

and

significant

transaction

related

expenses.

Adjusted

EBITDA

should

be

considered

in

addition

to,

rather

than

as

a

substitute

for,

operating

income.

Non-GAAP Financial Measures

18

Spring 2014

Non-GAAP Financial Measures

Non-GAAP Revenue (millions)

2009

2010

2011

2012

2013

Revenue

406

$    

418

$    

465

$    

667

$    

865

$   

Deferred revenue fair value adjustment

-

-

-

22

6

Non-GAAP revenue

406

$    

418

$    

465

$    

689

$    

871

$   

19

Adjusted EBITDA (millions)

2009

2010

2011

2012

2013

Net income (loss)

20

$     

27

$     

46

$     

49

$     

64

$    

Plus:

Income tax expense (benefit)

13

22

18

16

29

Net interest expense

2

1

1

10

27

Net other expense

7

4

1

-

3

Depreciation expense

6

6

8

13

19

Amortization expense

17

20

21

38

51

Non-cash compensation expense

8

8

11

15

14

Adjusted EBIDTA

73

88

106

141

207

Deferred revenue fair value adjustment

-

-

-

22

6

Employee related actions

-

-

-

11

11

Facility closure costs

-

-

-

5

2

IT

exit

costs

-

-

-

3

-

Other significant transaction related

expenses

-

-

7

9

13

Adjusted EBIDTA excluding significant

transaction related expenses

73

$     

88

$     

113

$   

191

$   

239

$  

Spring 2014

ACI

is

also

presenting

operating

free

cash

flow,

which

is

defined

as

net

cash

provided

by

operating

activities,

plus

payments

associated

with

the

cash

settlement

of

acquisition

related

options

and

significant

acquired

opening

balance

sheet

liabilities,

plus

net

after-tax

payments

associated

with

employee-related

actions

and

facility

closures,

net

after-tax

payments

associated

with

significant

transaction

related

expenses,

net

after-tax

payments

associated

with

IBM

IT

outsourcing

transition

and

termination,

and

less

capital

expenditures.

Operating

free

cash

flow

is

considered

a

non-GAAP

financial

measure

as

defined

by

SEC

Regulation

G.

We

utilize

this

non-GAAP

financial

measure,

and

believe

it

is

useful

to

investors,

as

an

indicator

of

cash

flow

available

for

debt

repayment

and

other

investing

activities,

such

as

capital

investments

and

acquisitions.

We

utilize

operating

free

cash

flow

as

a

further

indicator

of

operating

performance

and

for

planning

investing

activities.

Operating

free

cash

flow

should

be

considered

in

addition

to,

rather

than

as

a

substitute

for,

net

cash

provided

by

operating

activities.

A

limitation

of

operating

free

cash

flow

is

that

it

does

not

represent

the

total

increase

or

decrease

in

the

cash

balance

for

the

period.

This

measure

also

does

not

exclude

mandatory

debt

service

obligations

and,

therefore,

does

not

represent

the

residual

cash

flow

available

for

discretionary

expenditures.

We

believe

that

operating

free

cash

flow

is

useful

to

investors

to

provide

disclosures

of

our

operating

results

on

the

same

basis

as

that

used

by

our

management.

Non-GAAP Financial Measures

Reconciliation of Operating Free Cash Flow

(millions)

2009

2010

2011

2012

2013

Net cash provided (used) by operating

activities

44

$      

81

$      

83

$      

(9)

$       

138

$   

Net after-tax payments associated with

employee-related actions

3

-

-

6

10

Net after-tax payments associated with facility

closures

-

-

-

3

1

Net after-tax payments associated with

significant transaction related expenses

-

-

4

9

18

Net after-tax payments associated with cash

settlement of acquisition related options

-

-

-

10

10

Payments associated with acquired opening

balance sheet liabilties

-

-

-

-

5

Net after-tax payments associated with IBM IT

Outsourcing Transition

1

1

1

2

Plus IBM Alliance liability repayment

-

-

-

21

-

Less capital expenditures

(10)

(13)

(19)

(17)

(33)

Less IBM Alliance technical enablement

expenditures

(7)

(6)

(2)

-

-

Operating Free Cash Flow

30

$      

63

$      

67

$      

24

$      

151

$   

20

Spring 2014

ACI

also

includes

backlog

estimates,

which

include

all

software

license

fees,

maintenance

fees

and

services

specified

in

executed

contracts,

as

well

as

revenues

from

assumed

contract

renewals

to

the

extent

that

we

believe

recognition

of

the

related

revenue

will

occur

within

the

corresponding

backlog

period.

We

have

historically

included

assumed

renewals

in

backlog

estimates

based

upon

automatic

renewal

provisions

in

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,

facilities

management,

and

software

hosting

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

of

future

financial

results

are

inherently

unreliable.

Our

backlog

estimates

require

substantial

judgment

and

are

based

on

a

number

of

assumptions

as

described

above.

These

assumptions

may

turn

out

to

be

inaccurate

or

wrong,

including

for

reasons

outside

of

management’s

control.

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

or

that

the

actual

revenues

will

be

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.

Non-GAAP Financial Measures

21

Spring 2014

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,”

“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:

(i)

expectations

regarding

2014

financial

guidance,

including

non-GAAP

revenue,

adjusted

EBITDA,

and

net

new

sales

bookings;

(ii)

expectations

regarding

Q1

2014

revenue;

(iii)

expectations

regarding

five

year

targets,

including

future

increases

in

organic

revenue,

adjusted

EBITDA

margin,

operating

free

cash

flow,

and

sales

net

of

term

extension.

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,

increased

competition,

the

performance

of

our

strategic

product,

BASE24-eps,

demand

for

our

products,

restrictions

and

other

financial

covenants

in

our

credit

facility,

consolidations

and

failures

in

the

financial

services

industry,

customer

reluctance

to

switch

to

a

new

vendor,

the

accuracy

of

management’s

backlog

estimates,

the

maturity

of

certain

products,

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,

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,

volatility

and

disruption

of

the

capital

and

credit

markets

and

adverse

changes

in

the

global

economy,

our

existing

levels

of

debt,

impairment

of

our

goodwill

or

intangible

assets,

litigation,

future

acquisitions,

strategic

partnerships

and

investments,

risks

related

to

the

expected

benefits

to

be

achieved

in

the

transaction

with

Online

Resources,

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,

the

cyclical

nature

of

our

revenue

and

earnings

and

the

accuracy

of

forecasts

due

to

the

concentration

of

revenue

generating

activity

during

the

final

weeks

of

each

quarter,

business

interruptions

or

failure

of

our

information

technology

and

communication

systems,

our

offshore

software

development

activities,

risks

from

operating

internationally,

including

fluctuations

in

currency

exchange

rates,

exposure

to

unknown

tax

liabilities,

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,

Registration

Statement

on

Form

S-4,

and

subsequent

reports

on

Forms

10-Q

and

8-K.

22

Spring 2014