Fidelity National Information Services Inc at Bank of America Electronic Payments Symposium Summary

The following is excerpted from the question-and-answer section of the transcript.

Question: Jason Kupferberg - BofA Securities Inc - Analyst : <_ALACRA_META_ABSTRACT>We were just talking about time going fast. You've been in your seat for about 1.5 years now, accomplished a lot, comprehensive Investor Day, which was almost a year ago. Give us your progress report on the strategic priorities that you kind of laid out in both the banking segment and the capital markets segment. And then what's on the top of your list to really focus on in both those areas for 2025?

Question: Jason Kupferberg - BofA Securities Inc - Analyst : Yes. No, it's a great summary. So even on top of all the progress you've made, more work to do. I'm going to start on the banking side. Obviously, it's the bigger of the two segments, and you alluded to some of the one-off challenges in Q4 in banking. So now we're looking ahead to 2025. We're thinking about the quarterly cadence of growth in the banking segment. 4% is the midpoint of the full year guide, and that's exactly what you told us in May of 2024 at your Investor Day. It would be, so no change there. But the shape of the year looks a little bit different. Q1 at the midpoint is about 1%, and then you guys talked about 300 basis points of acceleration in the year-over-year growth rate from Q1 into Q2. How is the visibility on that acceleration? And anything you want to tell us just about Q1 in terms of how you're feeling about that? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. MARCH 18, 2025 / 2:40PM, FIS.N - Fidelity National Information Services Inc at Bank of America Electronic Payments Symposium

Question: Jason Kupferberg - BofA Securities Inc - Analyst : Okay. Okay, so it's those three shifts that you outlined that basically drive the 300 bps of acceleration?

Question: Jason Kupferberg - BofA Securities Inc - Analyst : Two of three are done. All right, so that's like two-thirds of the 300 bps, I guess, that you need. So you're feeling pretty good about that. So I mean, look, frankly, I think you guys get there in Q2. It will obviously take a lot of angst out of the -- okay. Very helpful. So REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. MARCH 18, 2025 / 2:40PM, FIS.N - Fidelity National Information Services Inc at Bank of America Electronic Payments Symposium maybe we can -- just to rewind to Q4 for a minute, just so people kind of have the context there, there were the three one-time items. Some of it was nonrecurring, right? There was a reversal of a contract termination fee because, I think there was a merger called off, obviously beyond your control. There was a push out of a large license deal. And then there was a contract recognition adjustment, if I remember correctly, on the recurring side, which was about a 1% headwind. I was curious if you can just elaborate on kind of what the nature of that adjustment was? What caused -- is that something that's commonplace in the business?

Question: Jason Kupferberg - BofA Securities Inc - Analyst : Okay. Okay, all right. So I mean, anything else we should just be aware of? I mean we talked about Q2 a lot. But just in the back half,

Question: Jason Kupferberg - BofA Securities Inc - Analyst : Yes. Right to get, right? Okay, all right. So 80 bps, that's the second half of the year contribution. Did I get that right?

Question: Jason Kupferberg - BofA Securities Inc - Analyst : That's the full year number. Okay, got it. Got it, okay. From the sales last year, essentially. Okay, perfect. All right. Glad we got through all those numbers. So let's just maybe -- a little bit more qualitatively, I want to zoom out on just the competitive landscape in core banking. You have alluded to it a little bit. You feel really good about the Horizon product, for example. But how have you seen kind of the evolution there if we kind of break down the market into kind of small, medium, and large for lack of better terms?

Question: Jason Kupferberg - BofA Securities Inc - Analyst : Classic handholding and relationship management.

Question: Jason Kupferberg - BofA Securities Inc - Analyst : Yes. And so just as we think about kind of that move down market into the $1 billion to $10 billion where you've had more success, are those deals more profitable than your market deals?

Question: Jason Kupferberg - BofA Securities Inc - Analyst : Right. Okay. Well, plenty of wood to chop north of $1 billion, right? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. MARCH 18, 2025 / 2:40PM, FIS.N - Fidelity National Information Services Inc at Bank of America Electronic Payments Symposium

Question: Jason Kupferberg - BofA Securities Inc - Analyst : Okay. I think you briefly mentioned Office of the CFO earlier kind of a newer solution bundle. Just tell us more about that product set, how you're bringing it to market? Does your guidance for 2025 contemplate any material contribution from this initiative?

Question: Jason Kupferberg - BofA Securities Inc - Analyst : So this will all fall into the Capital Markets segment?

Question: Jason Kupferberg - BofA Securities Inc - Analyst : I see, rather than being aligned by product.

Question: Jason Kupferberg - BofA Securities Inc - Analyst : Presumably, some of those doors to the CFO are already open to you guys because they're using your core, right?

Question: Jason Kupferberg - BofA Securities Inc - Analyst : Okay, interesting to watch. So post Worldpay, obviously, FIS is not in the merchant-acquiring business anymore, but you still have some exposure to the payments market. You've got the issuer processing business. I mean it's actually about half of your banking segment. So I was just curious to kind of get an update there on how are you getting paid per transaction, right, and it's primarily debit? How are the transaction trends looking in the card business?

Question: Jason Kupferberg - BofA Securities Inc - Analyst : Okay. Good to hear. Obviously, a fair bit of macro noise.

Question: Jason Kupferberg - BofA Securities Inc - Analyst : Yes, you're not worried about ticket size.

Question: Jason Kupferberg - BofA Securities Inc - Analyst : For sure, yes. We've seen that historically. So I want to move over to the Capital Markets segment. Execution has been really good there. And tell us what you think has primarily been driving that? I know you've got a myriad of products, and you gave us some good detail on that at the Investor Day last year. But what would you highlight is kind of really driving the strong performance? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. MARCH 18, 2025 / 2:40PM, FIS.N - Fidelity National Information Services Inc at Bank of America Electronic Payments Symposium

Question: Jason Kupferberg - BofA Securities Inc - Analyst : And so if we think about the growth rates for that business, so you're guiding Capital Markets 6.5%, 7% for 2025. I think the longer-term target from the Investor Day is 7.5%, 8.5%, so 1 point-ish of difference. What are the accelerants that get us there? I mean, is it just some incremental acquisition activity or --

Question: Jason Kupferberg - BofA Securities Inc - Analyst : Okay, right, maybe a pull forward or whatever it was.

Question: Jason Kupferberg - BofA Securities Inc - Analyst : Okay, understood. So I want to talk about diversification into some of the non-traditional end markets within the Capital Markets business and -- because at the Investor Day, I think you highlighted that about 30% of the revenue is coming from some of those non-traditional areas. So maybe give us some examples of those markets. And then how fast is that 30% piece growing? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. MARCH 18, 2025 / 2:40PM, FIS.N - Fidelity National Information Services Inc at Bank of America Electronic Payments Symposium

Question: Jason Kupferberg - BofA Securities Inc - Analyst : Yes, right, and you can cross sell into that base.

Question: Jason Kupferberg - BofA Securities Inc - Analyst : So let's talk about sales. You alluded to it earlier. So in 2024, total company, new sales, ACV, if you will, up 9%. I think you just mentioned earlier that Banking was actually a little bit better than that, right? Low double digits. So how should we be thinking about the potential growth rates in sales for 2025? What have you built into the plan?

Question: Jason Kupferberg - BofA Securities Inc - Analyst : Okay, so the plans are just kicking in now in this.

Question: Jason Kupferberg - BofA Securities Inc - Analyst : Right, which makes sense. Okay, and then you have the cross-selling initiative, Amplify, as you call it. I think there was a 10% boost in sales there for Amplify. So any specific call-outs in terms of what drove that? Or are there kind of isolated areas of particular focus for Amplify in 2025?

Question: Jason Kupferberg - BofA Securities Inc - Analyst : Yes, okay. And so let's shift over to margins because that was an important topic at the Investor Day, and I know you've been very focused on it. You guys did a really good job on margins last year. You're talking about 40 to 45 basis points this year. What's going to drive that? And then maybe you can tack on a little bit of mention of what drives sort of the incremental acceleration in the rate of margin expansion in 2026 per the Investor Day targets that are out there?

Question: Jason Kupferberg - BofA Securities Inc - Analyst : Yes, so it sounds like a lot of it is really in your control and you're just benefiting from the natural economy.

Question: Jason Kupferberg - BofA Securities Inc - Analyst : Excellent. Let's talk about free cash flow. I know you mentioned it as a priority of yours for 2025, and there's some moving parts here. I wanted to start with the acquisition and integration-related payments. I know those get added back in the adjusted free cash flow calculation. If I'm not mistaken, that was about $475 million last year. How much of that is related to Worldpay separation versus other factors? And any way to think about how that $475 million may trend this year or next year?

Question: Jason Kupferberg - BofA Securities Inc - Analyst : Is that happening on schedule so far?

Question: Jason Kupferberg - BofA Securities Inc - Analyst : Right, yes. Okay. We'll be looking at smaller add-backs basically.

Question: Jason Kupferberg - BofA Securities Inc - Analyst : With each successive year, essentially. Okay, good. Good. CapEx, I know a couple of quarters you guys started taking about the fact that there were some pretty big price hikes from some of your IT vendors. So I think you're running about 9% of revenue now and you're expecting that to persist this year. Target range is a little bit less than that, 7% to 8%. So is 7% to 8% achievable in 2026? Does it take longer?

Question: Jason Kupferberg - BofA Securities Inc - Analyst : Is there still more of that you can do?

Question: Jason Kupferberg - BofA Securities Inc - Analyst : Right. So on the working capital side, I guess, are the opportunities more on the payable side or the receivables side?

Question: Jason Kupferberg - BofA Securities Inc - Analyst : Okay, so that make a big difference.

Question: Jason Kupferberg - BofA Securities Inc - Analyst : Is that right? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. MARCH 18, 2025 / 2:40PM, FIS.N - Fidelity National Information Services Inc at Bank of America Electronic Payments Symposium

Question: Jason Kupferberg - BofA Securities Inc - Analyst : Right. So when you boil all this down, free cash flow conversion, I think the guide is 82% to 85% this year. The longer-term target, I think, still stands at 90%?

Question: Jason Kupferberg - BofA Securities Inc - Analyst : You think we'll get there next year?

Question: Jason Kupferberg - BofA Securities Inc - Analyst : Okay, understood. Understood. I know we're running out of time, but just tell us -- I'm curious just on Worldpay. Just remind us what are the options at least over the long term to monetize potentially the 45% stake?

Question: Jason Kupferberg - BofA Securities Inc - Analyst : Revenue growth has really turned around there. REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. MARCH 18, 2025 / 2:40PM, FIS.N - Fidelity National Information Services Inc at Bank of America Electronic Payments Symposium

Question: Jason Kupferberg - BofA Securities Inc - Analyst : All right. We'll end on that happy note. James, thank you very much. We appreciate it. Thank you for the time.