Fiserv 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 - Bank of America - Analyst : <_ALACRA_META_ABSTRACT>We've got a lot of stuff we want to, kind of, hit on with you because there's always a lot of stuff going on at Fiserv and tends to be good stuff. So, we like those -- we think those conversations. I wanted to start kind of big picture on some of the data that you guys tend to put out monthly. You've got your Small Business Index and you've got your spend trend report. And if we look at what you guys have shown since the beginning of the year, at least through February, pretty healthy numbers. I would say, overall, I mean, seasonally adjusted. It seems like there's stability is kind of the trend. At the same time, there's been a lot of fresh debates in recent weeks about the macro and the tariff uncertainty and some airlines are cutting guidance, right, and all kinds of moving parts. So, just anything you can share in terms of what you guys are seeing more recently on the merchant side of the business, volumes, transaction growth?

Question: Jason Kupferberg - Bank of America - Analyst : Okay. Okay. All right. Yes, definitely a lot of noise and sometimes we've got to separate the noise from the facts. So, that's all helpful.

Question: Jason Kupferberg - Bank of America - Analyst : Yes.

Question: Jason Kupferberg - Bank of America - Analyst : For sure, for sure. So maybe just remind us about some of the other considerations for Q1? I mean, there's leap day, of course, everyone has to kind of grow over. There's some Argentina dynamics for Fiserv. Just, if you want to put a finer point on any of that just as people start to firm up their first quarter numbers? 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 / 6:40PM, FI.N - Fiserv Inc at Bank of America Electronic Payments Symposium

Question: Jason Kupferberg - Bank of America - Analyst : Just one follow-up on the tariffs. I mean anything indirect we need to think about? I mean, I don't know how much of your merchant business is in places like Canada or Mexico or anything in terms of point-of-sale devices, do you source any of those from China or anything like that?

Question: Jason Kupferberg - Bank of America - Analyst : Right.

Question: Jason Kupferberg - Bank of America - Analyst : Yes. Exactly.

Question: Jason Kupferberg - Bank of America - Analyst : Yes. Yes, that's what I think we're all watching and --

Question: Jason Kupferberg - Bank of America - Analyst : So okay, great. So Mike Lyons, CEO-Elect, has got some big shoes to fill, but pretty exciting for your company. He's been on the job, I don't know, 1.5 months or so, I think. I mean are there any parts of the strategy you think you might tweak a little bit? I mean certainly, his initial comments suggest there's not going to be any major wholesale changes coming, which makes sense. But any tweaks maybe we should be look out for?

Question: Jason Kupferberg - Bank of America - Analyst : Sounds good. Sounds good. I mean Fiserv, obviously, has a number of attractive businesses, but most people certainly consider Clover to be your crown jewel. I mean it's approaching, I think, 15% of total company revenue. It's growing almost 30% still, obviously, at scale. We like to get your current assessment of Clover's competitive environment? Any changes maybe you've seen a revolution there, particularly at least starting in the US, when we think about the three main verticals that Clover is really focused on?

Question: Jason Kupferberg - Bank of America - Analyst : Right, right, right. Yeah. And I want to come back to dive into some of these incremental drivers that get you to those 2025 and 2026 targets. But before I forget, I actually want to come back to the ADP Clover relationship. I know you highlighted that briefly. I mean it really does seem like a very natural cross-sell opportunity between the two customer bases. But tell us a little bit more about the rollout plans. Anything you can share on the economics of the relationship and whether or not it's exclusive? And do you think it starts to move the needle a little bit this year on revenue? 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 / 6:40PM, FI.N - Fiserv Inc at Bank of America Electronic Payments Symposium

Question: Jason Kupferberg - Bank of America - Analyst : Yeah. No, it does sound super interesting. So let's come back to some of these incremental sources of growth for Clover. And I want to talk about the VAS piece. I guess, when we think about VAS today, we think of Clover Capital as being the biggest piece of that, and correct me if I'm wrong. So I'm just curious, how you guys are thinking about underwriting and credit there and with the macro becoming a little shakier? Do you think anything different about it?

Question: Jason Kupferberg - Bank of America - Analyst : You get the hand in the cash flow basically, right.

Question: Jason Kupferberg - Bank of America - Analyst : Have you guys seen any different kind of loan sizes in Clover Capital? Or is there -- what is the average loan size?

Question: Jason Kupferberg - Bank of America - Analyst : Okay. So let's turn to some of those newer geographies. Brazil, Mexico, Australia, and I know, again, some of this is pretty nascent. But just if you're looking out whatever, 12, 18, 24 months, is there a view in terms of which of those geographies can actually drive the most incremental revenue? And maybe just talk a little bit about distribution strategy in the respective regions?

Question: Jason Kupferberg - Bank of America - Analyst : Okay. Yes. Makes sense. Makes sense. So the back book also comes up sometimes as a Clover driver and I think originally, at the Investor Day, you guys had said that back book maybe contributes 10%. And I think that's more or less been your experience since the time of the Investor Day. As we look out at your 2026 target, does that 10% get a little bit bigger?

Question: Jason Kupferberg - Bank of America - Analyst : Yes. Yes. No, that would certainly make sense. All right. So we're going to move on to Financial Solutions. And I wanted to talk about pipeline on the issuer processing side of the business because you've had a number of big wins. You touched on a couple of them briefly like Verizon and Target, there was Desjardins. So what's the state of play right now in the pipeline now that you landed some big contracts?

Question: Jason Kupferberg - Bank of America - Analyst : Yes, I'm glad you brought out DoorDash because I was going to get there, but maybe for people who are a little less familiar with the relationship, maybe just say a few words about how it actually works in practice and kind of the benefit to the dashers?

Question: Jason Kupferberg - Bank of America - Analyst : Great. Great. And then I want to come back to CashFlow Central then the small business bundle. It would be helpful, I think, if you just kind of go through some of the key aspects of those products and the rollout time lines. I know CashFlow Central is kind of part of the bundle.

Question: Jason Kupferberg - Bank of America - Analyst : But just unpack that for us a bit.

Question: Jason Kupferberg - Bank of America - Analyst : How many banks are signed up so far?

Question: Jason Kupferberg - Bank of America - Analyst : All right.

Question: Jason Kupferberg - Bank of America - Analyst : Okay. So we'll look forward to hearing more about those. I wanted to spend a couple of minutes on the core banking business, which obviously, post the merger with First Data, became a smaller piece of overall Fiserv, but a very long-term business for you guys. How would you assess the competitive landscape there? I mean I think of Fiserv is playing across various aspects of that market. So just how you've seen that evolve and how you feel about Fiserv's overall positioning?

Question: Jason Kupferberg - Bank of America - Analyst : If we think about, you mentioned the guidance for financial solutions this year. So it is calling for a little bit of acceleration. I think it's a little bit back half loaded. I think there are some genuine drivers for that, but just hone in on kind of the points of visibility that you have into that acceleration? 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 / 6:40PM, FI.N - Fiserv Inc at Bank of America Electronic Payments Symposium

Question: Jason Kupferberg - Bank of America - Analyst : Basically you're talking about a point right at the mid one point of accelerated.

Question: Jason Kupferberg - Bank of America - Analyst : Okay. And you're going to have target for three quarters and Verizon for what for quarter.

Question: Jason Kupferberg - Bank of America - Analyst : Right. Pieces are all there. Yes. Okay. Okay. Good. That's good color. I wanted to touch on the Pay by Bank initiative at Walmart, where you guys are obviously an important part of that. And I wanted to get a sense of just is that moving into production? Just curious on timing there. And when you guys talk to other large merchants that obviously, have deep relationships with, are you getting the sense that there is interest from others as well?

Question: Jason Kupferberg - Bank of America - Analyst : Yes. Okay. So it sounds like one to watch, but it's still early days.

Question: Jason Kupferberg - Bank of America - Analyst : Let's talk about operating margins. You guys are calling for at least 125bps of expansion. I think in both segment as well as, obviously, total company. And you guys have really done a fantastic job on margins, probably even more so since the merger. And I wanted to hear about kind of the levers that you have to drive incremental margin expansion and all this ongoing efficiency because, again, margins are up hundreds of basis points since the merger.

Question: Jason Kupferberg - Bank of America - Analyst : Right.

Question: Jason Kupferberg - Bank of America - Analyst : Yes, it's a nice --

Question: Jason Kupferberg - Bank of America - Analyst : Yes. Yes. I know it's a great flywheel, right?

Question: Jason Kupferberg - Bank of America - Analyst : And I guess, is mix helping with ongoing margin expansion, too? I mean if I think about, for example, the outsized growth in Clover.

Question: Jason Kupferberg - Bank of America - Analyst : Exactly.

Question: Jason Kupferberg - Bank of America - Analyst : Is there still a focus on outright cost takeout too? Or do you feel like you've realized most of that? I think depending on how deep you want to look, yes. But ultimately, it's growing at better than company margins. And so an incremental dollar of revenue or 5% revenue growth doesn't bring 5% cost growth. 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 / 6:40PM, FI.N - Fiserv Inc at Bank of America Electronic Payments Symposium

Question: Jason Kupferberg - Bank of America - Analyst : Economies of scale are a beautiful thing, right?

Question: Jason Kupferberg - Bank of America - Analyst : I wanted to talk about free cash flow. This has also been a bright spot of the story you're guiding to $5.5 billion for this year. I think that would put you pretty close to the 100% conversion target. And that's actually better than I think 90% is what you talked about at the Investor Day, right, that you were aiming for 2025 and 2026. So it looks like you're actually outperforming a little bit. And just curious what's driven the outperformance? Is it just the margins coming in better or other factors?

Question: Jason Kupferberg - Bank of America - Analyst : Locking and tackling.

Question: Jason Kupferberg - Bank of America - Analyst : Optimization, 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 / 6:40PM, FI.N - Fiserv Inc at Bank of America Electronic Payments Symposium

Question: Jason Kupferberg - Bank of America - Analyst : Like you said, the payables as.

Question: Jason Kupferberg - Bank of America - Analyst : Yes, good old-fashioned working capital management, which is great. Let's talk about M&A. I mean, obviously, you guys buy back a lot of stock pretty much every year, but there is some balance in your capital deployment strategy, and you've not been shy about doing deals historically, if I think about just since First Data, obviously, I mean, there obviously have been smaller transactions. But now with kind of the changing of the guard CEO, do you expect anything to materially change there? Or maybe just any characterization of the current M&A pipeline that you'd want to share?

Question: Jason Kupferberg - Bank of America - Analyst : But with your organic growth, you can afford to be disciplined.

Question: Jason Kupferberg - Bank of America - Analyst : So, all right. Great. We've got to leave it there we're out of time. Thanks so much. Really appreciate it.

Question: Jason Kupferberg - Bank of America - Analyst : Take care.