FIS is a financial technology company that provides a wide range of solutions to financial institutions, businesses, and developers globally. The company operates primarily through its Banking Solutions and Capital Market Solutions segments, offering core processing software, transaction processing software, and complementary applications and services **[0001136893-24-000015_fis-20231231.htm:6]** **[0001136893-24-000015_fis-20231231.htm:116]**. FIS also has a significant presence in the payments industry, with products that support issuer processing, money rails, and fraud management tools, contributing to over half of its revenue **[FIS_3388449_13]** **[FIS_3388449_16]**. The company's revenue is primarily derived from technology and processing solutions, transaction processing fees, professional services, and software license fees, with a strong emphasis on recurring revenue streams from multi-year contracts **[0001136893-24-000139_fis-20240930.htm:42]** **[0001136893-24-000113_fis-20240630.htm:36]**.

1. **Banking Solutions** - Provides core processing software, transaction processing software, and complementary applications and services for financial institutions of all sizes, characterized by multi-year processing contracts that generate recurring revenue **[0001136893-24-000015_fis-20231231.htm:6]** **[0001136893-24-000015_fis-20231231.htm:116]**.
2. **Payments Products** - Supports issuer processing, money rails, and fraud management tools, facilitating over 17 billion transactions annually **[FIS_3388449_13]** **[FIS_3388449_16]**.
3. **Capital Market Solutions** - Serves global financial institutions and commercial organizations with products that support trading, risk management, and investment operations **[0001136893-24-000015_fis-20231231.htm:6]**.

e8649eb4bebdd19e616da29969eb0dedeeb8c540070d2c903bed35b515e7328f

| Metric (in millions)          | Q4 2022 | Q1 2023 | Q2 2023 | Q3 2023 | Q4 2023 | Q1 2024 | Q2 2024 | Q3 2024 |
|-------------------------------|---------|---------|---------|---------|---------|---------|---------|---------|
| Merchant float                | $2,625  **[0001136893-23-000028_fis-20221231.htm:84]**  | $2,471  **[0001136893-23-000077_fis-20230331.htm:7]**  | $2,379  **[0001136893-23-000127_fis-20230630.htm:9]**  | $2,259  **[0001136893-23-000148_fis-20230930.htm:12]**  | $2,594  **[0001136893-24-000015_fis-20231231.htm:114]**  | $792  **[0001136893-24-000063_fis-20240331.htm:13]**  | $821  **[0001136893-24-000113_fis-20240630.htm:11]**  | $1,151  **[0001136893-24-000139_fis-20240930.htm:12]**  |
| Settlement receivables        | $2,738  **[0001136893-23-000028_fis-20221231.htm:88]**  | $1,427  **[0001136893-23-000077_fis-20230331.htm:7]**  | $1,278  **[0001136893-23-000127_fis-20230630.htm:9]**  | $209  **[0001136893-23-000148_fis-20230930.htm:1]**  | $154  **[0001136893-24-000015_fis-20231231.htm:89]**  | $236  **[0001136893-24-000063_fis-20240331.htm:13]**  | $130  **[0001136893-24-000113_fis-20240630.htm:11]**  | $175  **[0001136893-24-000139_fis-20240930.htm:17]**  |

dbef4ff97cd197957e42aab332f5b957286b883062c12ba4beff56aa5e4f13ca

Remaining performance obligations (USD billions)

Percentage of RPO recognized in next 12 months (percentage)

Percentage of RPO recognized in next 13-24 months (percentage)

2e9d37620b02536e66ce75e158dcadf48b3f1f94e28c318918f31ad0fcb2ce03

| Segment/Quarter                     | Q4 2022  **[0001193125-23-034197_d422291dex991.htm:0]** **[0001193125-23-034197_d422291dex991.htm:0]**  | Q1 2023  **[0001136893-23-000077_fis-20230331.htm:30]** **[0001136893-23-000073_q12023ex991.htm:0]**  | Q2 2023  **[0001136893-23-000124_q22023ex991.htm:1]** **[0001136893-23-000124_q22023ex991.htm:1]**  | Q3 2023  **[0001136893-23-000145_q32023ex991.htm:1]** **[0001136893-23-000145_q32023ex991.htm:1]**  | Q4 2023  **[0001136893-24-000012_q42023ex991.htm:1]** **[0001136893-24-000012_q42023ex991.htm:1]**  | Q1 2024  **[0001136893-24-000060_q12024ex991.htm:1]** **[0001136893-24-000060_q12024ex991.htm:1]**  | Q2 2024  **[0001136893-24-000111_q22024ex991.htm:1]** **[0001136893-24-000111_q22024ex991.htm:1]**  | Q3 2024  **[0001136893-24-000133_q32024ex991.htm:1]** **[0001136893-24-000133_q32024ex991.htm:1]**  |
|-------------------------------------|---------------------|---------------------|---------------------|---------------------|---------------------|---------------------|---------------------|---------------------|
| **Banking Solutions** ($ million)   | **1,717**           | **1,685**           | **1,700**           | **1,756**           | **1,692**           | **1,684**           | **1,710**           | **1,779**           |
| **Merchant Solutions** ($ million)  | **1,178**           | **1,105**           | **1,300**           | N/A                 | N/A                 | N/A                 | N/A                 | N/A                 |
| **Capital Market Solutions** ($ million) | **771**         | **663**             | **672**             | **677**             | **755**             | **706**             | **722**             | **730**             |
| **Corporate and Other** ($ million) | **48**              | **57**              | **60**              | **56**              | **63**              | **77**              | **57**              | **61**              |

ce122db334d62b9ce2d0dd00864386a7ae707458c7964d3935289583e45e0711

Adjustments for Non-Cash Items (USD, millions)

Stock-Based Compensation (USD, millions)

Changes in Working Capital (USD, millions)

Capital Expenditures (CapEx) (USD, millions)

Proceeds from / Repayments of Debt (USD, millions)

Share Repurchases (USD, millions)

Dividend Payments (USD, millions)

Net Change in Cash (USD, millions)

f57a669b739637bd0af47dca13440da91bf3d3f55156ef9f57d7abe71346ecb5

c87e31ff303b2a853ebb052aeddcf316e9be3c8f54c16fefd3ca618cc12f7d02

| Metric [USD Million] | Q4 2022 | Q1 2023 | Q2 2023 | Q3 2023 | Q4 2023 | Q1 2024 | Q2 2024 | Q3 2024 |
|----------------------|---------|---------|---------|---------|---------|---------|---------|---------|
| North America        | N/A     | **2,667**    | N/A     | **1,956**    | **1,910**    | **1,917**    | **1,945**    | **1,999**    |
| All Others           | N/A     | **843**      | N/A     | **533**      | **600**      | **550**      | **544**      | **571**      |
| Total Revenue        | N/A     | **3,510**    | N/A     | **2,489**    | **2,510**    | **2,467**    | **2,489**    | **2,570**    |

ffc7134d09f0a37c168cc9f815cabe75dd3d2b646e525542b9f51f537fe82ae8

478210c8b462a8c6b9dfe760408079f7b1e2383b594b734568697ca51cc4f07d

1. Despite reporting strong sales momentum and signing more core engagements in the first three quarters of 2024 than in all of 2023, core conversions tend to take considerable time; can you elaborate on the challenges you face in accelerating these implementations, especially with larger banks, and how this might impact your growth projections?

2. You mentioned that the Dragonfly acquisition will be margin dilutive in the initial 12 months; what specific strategies do you have to realize the expected revenue and cost synergies, and when do you anticipate this acquisition becoming accretive to your overall margins?

3. Facing significant price increases from technology suppliers—some as high as 50% to 70%—how are these cost pressures affecting your capital expenditure plans, and what measures are you taking to mitigate their impact on your margins and cash flow conversion?

4. Given that the bank M&A market is still suppressed, especially among larger banks due to regulatory challenges, and most activity is occurring with smaller banks where you "win there and lose there," how do you plan to leverage consolidation trends to strengthen your position and drive growth with larger financial institutions?

5. While you've seen strong demand and momentum in international markets, particularly in Capital Markets outside the U.S., what challenges do you foresee in expanding your Banking Solutions internationally, and what strategies are in place to ensure sustainable growth in these regions?

57497196800f48a9662173ae902192576b9cea8053d6e020cfe5ad8955c685fb

- Internal technology or software development departments within financial institutions or other large companies  **[0001136893-24-000015_fis-20231231.htm:12]** 
- Global and regional companies providing payment services  **[0001136893-24-000015_fis-20231231.htm:12]** 
- Third-party payment processors  **[0001136893-24-000015_fis-20231231.htm:12]** 
- Payment facilitators  **[0001136893-24-000015_fis-20231231.htm:12]** 
- Embedded payment solution providers  **[0001136893-24-000015_fis-20231231.htm:12]** 
- Securities exchanges  **[0001136893-24-000015_fis-20231231.htm:12]** 
- Asset managers  **[0001136893-24-000015_fis-20231231.htm:12]** 
- Card associations  **[0001136893-24-000015_fis-20231231.htm:12]** 
- Clearing networks or associations  **[0001136893-24-000015_fis-20231231.htm:12]** 
- Trust companies  **[0001136893-24-000015_fis-20231231.htm:12]** 
- Independent computer services firms  **[0001136893-24-000015_fis-20231231.htm:12]** 
- Companies that develop and deploy software applications  **[0001136893-24-000015_fis-20231231.htm:12]** 
- Companies owned by global banks selling competitive solutions  **[0001136893-24-000015_fis-20231231.htm:12]** 
- Companies that provide customized development, implementation and support services  **[0001136893-24-000015_fis-20231231.htm:12]** 
- Emerging technology innovators  **[0001136893-24-000015_fis-20231231.htm:12]** 
- Business process outsourcing companies  **[0001136893-24-000015_fis-20231231.htm:12]** 

58b3c92a19e2c50c3a8ca8b7740a9bae0449004c47686d18091dcd528d65463f

Merchant float

Settlement receivables

4326591e73be31a5b62e5a55de3caa6733908f9f2892cde22b80de547babf82c

40534d304f9da1f137d911bc5f4e6b816cfd27217ed4475055dea6d5c5332983

23794d91c53ae875c8e247d72561e35d9d06ee07c70c9e0dbcc977a6d161504a

| Name                  | Position                                                                 | Start Date          | Short Bio                                                                                                                                                                                                                                                                                                                                                   |
|-----------------------|--------------------------------------------------------------------------|---------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| Stephanie L. Ferris   | Chief Executive Officer and President                                    | December 2022       | Stephanie L. Ferris has been serving as the **Chief Executive Officer** of FIS since **December 2022** and as **President** since **February 2022**. She has over 20 years of experience in the fintech industry, focusing on corporate finance, payments, and banking. Previously, she held executive roles at FIS and was CFO at Worldpay  **[0001193125-24-118098_d96146ddef14a.htm:13]** **[0001193125-23-101385_d306779ddef14a.htm:12]** .               |
| Firdaus Bhathena      | Chief Technology Officer                                                 | April 2023          | Firdaus Bhathena has served as the **Chief Technology Officer of FIS since April 2023**. He has extensive technology and business leadership experience, having worked at Noom and CVS Health, and founded two technology companies acquired by Cisco Systems and Symantec  **[0001193125-24-118098_d96146ddef14a.htm:39]** .                                                                               |
| James Kehoe           | Corporate Executive Vice President, Chief Financial Officer              | August 21, 2023     | James Kehoe has served as the **Corporate Executive Vice President and Chief Financial Officer (CFO)** of FIS since **August 21, 2023**. He has over 25 years of finance experience, previously serving as CFO at Walgreens Boots Alliance and Takeda Pharmaceutical Company  **[0001193125-24-118098_d96146ddef14a.htm:39]** .                                                                              |
| Christopher A. Thompson | Executive Vice President, Chief Accounting Officer (transitioning to advisory role) | September 2023      | Christopher A. Thompson served as Executive Vice President and Chief Accounting Officer of FIS starting in September 2023. He joined FIS through the Worldpay acquisition in 2019 and will transition to an advisory role until his retirement on June 1, 2025  **[0001193125-24-118098_d96146ddef14a.htm:39]** **[0001136893-24-000148_fis-20241113.htm:1]** .                                                                                      |
| Caroline Tsai         | Corporate Executive Vice President, Chief Legal & Corporate Affairs Officer | May 26, 2022       | Caroline Tsai has served as Corporate Executive Vice President and Chief Legal & Corporate Affairs Officer at FIS since **May 26, 2022**. She joined FIS as Chief Legal Officer in February 2022 and previously held senior legal positions at The Western Union Company, BMO Financial Group, and Bank of America Corporation  **[0001193125-24-118098_d96146ddef14a.htm:40]** **[0001193125-23-101385_d306779ddef14a.htm:43]** **[0001193125-23-101385_d306779ddef14a.htm:78]** .                      |
| L. Denise Williams    | Corporate Executive Vice President, Chief People Officer                 | April 2016          | L. Denise Williams has served as the **Corporate Executive Vice President and Chief People Officer** at FIS since **April 2016**. She previously held senior HR roles at IBM Corporation and management positions at Coopers & Lybrand, First Data Corporation, and Alliance Bernstein  **[0001193125-24-118098_d96146ddef14a.htm:40]** **[0001193125-23-101385_d306779ddef14a.htm:44]** .                                                               |
| Nicole Anasenes       | Board Member, Member of Audit and Risk and Technology Committees         | October 11, 2024    | Nicole Anasenes was appointed to the Board of Directors of FIS on **October 11, 2024**. She has held leadership roles such as CFO at ANSYS, Squarespace, and Infor, and various positions at IBM. She also serves on the board of directors of Motorola Solutions, Inc.  **[0001136893-24-000123_fisnewsrelease-nicoleanase.htm:0]** **[0001136893-24-000123_fis-20241010.htm:1]** .                                                                               |
| Alexandra Brooks      | Executive Vice President, Chief Accounting Officer                       | November 13, 2024   | Alexandra Brooks was appointed as the **Executive Vice President, Chief Accounting Officer** of FIS effective **November 13, 2024**. She has extensive experience in leadership, accounting, and finance roles at Hertz Global Holdings, Aptiv PLC, and other companies  **[0001136893-24-000148_fis-20241113.htm:1]** .                                                                                 |
| Robert Toohey         | Corporate Executive Vice President, Chief People Officer                 | January 1, 2025     | Robert Toohey was named **Corporate Executive Vice President, Chief People Officer** of FIS, effective **January 1, 2025**. He has over 30 years of HR leadership experience, having served as Chief Human Resources Officer at Allstate Insurance Company and held roles at Verizon Media and GTE Corporation  **[0001193125-24-222925_d872225d8k.htm:1]** .                                        |

f4d74f28dbc8a5b33db0133e72a236caddf2bfa74dd394a5570ca281578723b9

| Program Details          | Program 1               | Program 2               |
|--------------------------|-------------------------|-------------------------|
| Approval Date            | January 2021  **[0001136893-24-000139_fis-20240930.htm:54]** **[0001136893-24-000139_fis-20240930.htm:61]** **[0001136893-24-000139_fis-20240930.htm:30]**   | August 2024  **[0001136893-24-000139_fis-20240930.htm:54]** **[0001136893-24-000139_fis-20240930.htm:61]** **[0001136893-24-000139_fis-20240930.htm:30]**    |
| End Date/Duration        | No expiration date  **[0001136893-24-000139_fis-20240930.htm:54]** **[0001136893-24-000139_fis-20240930.htm:61]** **[0001136893-24-000139_fis-20240930.htm:30]**  | No expiration date  **[0001136893-24-000139_fis-20240930.htm:54]** **[0001136893-24-000139_fis-20240930.htm:61]** **[0001136893-24-000139_fis-20240930.htm:30]**  |
| Total additional amount  | 100 million shares  **[0001136893-24-000139_fis-20240930.htm:54]** **[0001136893-24-000139_fis-20240930.htm:61]** **[0001136893-24-000139_fis-20240930.htm:30]**  | $3.0 billion  **[0001136893-24-000139_fis-20240930.htm:54]** **[0001136893-24-000139_fis-20240930.htm:61]** **[0001136893-24-000139_fis-20240930.htm:30]**  |
| Remaining authorization amount | 13 million shares  **[0001136893-24-000139_fis-20240930.htm:54]** **[0001136893-24-000139_fis-20240930.htm:61]** **[0001136893-24-000139_fis-20240930.htm:30]**  | Exhausted January 2021 program first  **[0001136893-24-000139_fis-20240930.htm:54]** **[0001136893-24-000139_fis-20240930.htm:61]** **[0001136893-24-000139_fis-20240930.htm:30]**  |
| Details                  | May be suspended, amended, or discontinued at any time  **[0001136893-24-000139_fis-20240930.htm:54]** **[0001136893-24-000139_fis-20240930.htm:61]** **[0001136893-24-000139_fis-20240930.htm:30]**  | May be suspended, amended, or discontinued at any time  **[0001136893-24-000139_fis-20240930.htm:54]** **[0001136893-24-000139_fis-20240930.htm:61]** **[0001136893-24-000139_fis-20240930.htm:30]**  |

b423a8b9b07aa5755473ca0edcf3d46343ba65a92ce8bf1a2ec240bec5d3e3dc

North America

All others

- Revenue from Contracts Executed Outside North America

Total Revenue

eb6e8a92e0b232e56eaf722fded7e6c7750df1393777a4838e2c86aa5224bdd9

8832a410b4c436e458e2cead247420b51a364113f91532bde8fb72cb41a3c3cf

**Annual guidance for FY 2024:**
- **Adjusted EPS**: $5.15 to $5.20  **[FIS_3405567_4]**  (raised from $5.03 to $5.11  **[FIS_3396552_3]** )  
- **Adjusted EBITDA**: Increased the low end by $10 million  **[FIS_3405567_4]**  (raised from previously increasing the low end by $15 million  **[FIS_3396552_3]** )  
- **EBITDA margin**: Approximately 40.7%  **[FIS_3405567_4]**  (no prior guidance)  
- **Capital Markets Segment Revenue Growth**: Expected to achieve the high end of 6.5% to 7%  **[FIS_3405567_4]**  (no change from 6.5% to 7%  **[FIS_3396552_3]** )  
- **Banking Segment Revenue Growth**: Anticipated closer to the lower to midpoint of 3% to 3.5%  **[FIS_3405567_4]**  (no change from 3% to 3.5%  **[FIS_3396552_3]** )  
- **Free Cash Flow Conversion**: Approximately 85%  **[FIS_3405567_3]**  (lowered from 85% to 90%  **[FIS_3396552_3]** )  
- **Capital Expenditures (CapEx)**: Closer to 9% of revenue  **[FIS_3405567_3]**  (no prior guidance)  
- **Worldpay EMI Outlook**: $480 million to $495 million  **[FIS_3405567_4]**  (no prior guidance)  
- **Tax Rate**: 12% to 13%  **[FIS_3405567_15]**  (no prior guidance)  
- **Share Repurchases**: On track for $4 billion  **[FIS_3405567_3]** **[FIS_3405567_4]**  (no prior guidance)  

657649186658767e77804352db9cc452033f1b968601b6a4edccde889cd01620

| Name       | Start Date | End Date | Reason for Change |
|------------|------------|----------|-------------------|
| KPMG LLP   | 2004  **[0001136893-24-000015_fis-20231231.htm:80]**    | Present  | Current auditor   |

bdd3363da7b7b58f6f0cdb4caed6b74bdeca63ea42055545b4588dad69a0f1d2

75dd486e01e3ccd7a1d2718a99ed5d0c5e2e5bc3a57a181830ddf93c4065a5fd

- Total Revenue: $2,570 million (+3% YoY from $2,489 million)  **[0001136893-24-000139_fis-20240930.htm:16]** **[0001136893-23-000148_fis-20230930.htm:11]**   
- Capital Market Solutions: $730 million (+8% YoY from $677 million)  **[0001136893-24-000139_fis-20240930.htm:16]** **[0001136893-23-000148_fis-20230930.htm:11]**   
- Transaction Processing: $1,733 million (**+30% YoY** from $1,334 million)  **[0001136893-24-000139_fis-20240930.htm:16]** **[0001136893-23-000148_fis-20230930.htm:11]**   
- All Other (Geography): $571 million (+7% YoY from $533 million)  **[0001136893-24-000139_fis-20240930.htm:16]** **[0001136893-23-000148_fis-20230930.htm:11]**   
- Operating Income (EBIT): $476 million (−93% YoY from $7,114 million)  **[0001136893-24-000139_fis-20240930.htm:2]** **[0001136893-24-000139_fis-20240930.htm:33]** **[0001136893-23-000148_fis-20230930.htm:2]**   
- Net Income: **$202 million** (up from −$447 million)  **[0001136893-24-000139_fis-20240930.htm:2]** **[0001136893-24-000139_fis-20240930.htm:33]** **[0001136893-23-000148_fis-20230930.htm:2]**   
- EPS (Diluted): $0.37 (up from −$0.75)  **[0001136893-24-000139_fis-20240930.htm:2]** **[0001136893-24-000139_fis-20240930.htm:33]** **[0001136893-23-000148_fis-20230930.htm:2]**   

be2788c093c16b17b28b28b98aa4ea52c57ebc7bbc9417783293a288f4d62c80

e864d628f5848fed2580047da6678df2fc4f65610945808b274bd407214cdb25

| Year | Amount Due (in millions) | Debt Type                                   | Interest Rate      | % of Total Debt                          |
|----------|------------------------------|------------------------------------------------|------------------------|---------------------------------------------|
| 2024     | $112                         | Euro-commercial paper notes (ECP Notes)        | 3.6% **[0001136893-24-000139_fis-20240930.htm:21]**           | 1.0% = (112 / 11,134) * 100 **[0001136893-24-000139_fis-20240930.htm:21]**         |
| 2024     | $17                          | Financing obligations for hardware/software     | N/A **[0001136893-24-000139_fis-20240930.htm:20]**            | 0.2% = (17 / 11,134) * 100 **[0001136893-24-000139_fis-20240930.htm:21]**          |
| 2025     | $1,009                       | Senior USD Notes, Senior Euro Notes            | 0.6% - 5.6% **[0001136893-24-000139_fis-20240930.htm:20]**    | 9.1% = (1,009 / 11,134) * 100 **[0001136893-24-000139_fis-20240930.htm:21]**       |
| 2026     | $1,268                       | Senior USD Notes, Senior Euro Notes            | N/A **[0001136893-24-000139_fis-20240930.htm:20]**            | 11.4% = (1,268 / 11,134) * 100 **[0001136893-24-000139_fis-20240930.htm:21]**      |
| 2027     | $1,627                       | Senior USD Notes, Senior Euro Notes            | 1.5% **[0001136893-24-000139_fis-20240930.htm:0]**           | 14.6% = (1,627 / 11,134) * 100 **[0001136893-24-000139_fis-20240930.htm:21]**      |
| 2028     | $1,677                       | Senior USD Notes, Senior Euro Notes            | 1.0% **[0001136893-24-000139_fis-20240930.htm:0]**           | 15.1% = (1,677 / 11,134) * 100 **[0001136893-24-000139_fis-20240930.htm:21]**      |
| 2029-2052| $5,536                       | Senior USD, Euro, GBP Notes                    | 1.2% - 5.6% **[0001136893-24-000139_fis-20240930.htm:20]**    | 49.7% = (5,536 / 11,134) * 100 **[0001136893-24-000139_fis-20240930.htm:21]**      |

db53be07dbb596368d32983162da31fe315e5ed74bfca8ac3e0b589cdf6b7598

- **Adjusted EPS from continuing operations increased by 53% to $1.10 in Q1 2024**, demonstrating strong profitability growth.  **[FIS_3386627_2]**
- **FIS raised its full-year adjusted EPS outlook by $0.22 to a range of $4.88 to $4.98**, reflecting confidence in sustained earnings growth and operational efficiencies.  **[FIS_3386627_3]** **[FIS_3386627_4]**
- **The company increased its share repurchase target by $500 million to $4 billion for 2024**, indicating a strong capital position and commitment to returning value to shareholders.  **[FIS_3386627_2]** **[FIS_3386627_1]** **[FIS_3386627_4]**

a384cc13d5a828f514a65fa9848a61cc9becde93363e9f0e273076234dc800d0

1. **Capital Markets Growth Guidance**  
   **Q:** How will Capital Markets growth look in Q4?  
   **A:** We expect to reach the high end of our **6.5% to 7% full-year guidance** for Capital Markets growth.  **[FIS_3405567_5]**  This implies strong recurring and total adjusted revenue growth in Q4, especially since we're lapping a weak prior-year quarter where Capital Markets was up only **1%**.  **[FIS_3405567_5]**  We're very confident about hitting **7% growth** for the full year.  **[FIS_3405567_5]** 

2. **CapEx Increase and Impact**  
   **Q:** Why is CapEx higher, and what's the outlook?  
   **A:** We're seeing temporary pressure on CapEx due to aggressive price hikes by technology suppliers, with increases of **50%, 60%, even 70%**.  **[FIS_3405567_7]**  This, along with select investments to drive revenue growth, has pushed our CapEx to about **9% of revenue this year**.  **[FIS_3405567_14]**  We expect this pressure to last **12 to 18 months** but remain confident that over the longer term, CapEx will return to **7% to 8%** of revenue.  **[FIS_3405567_14]**  Despite this, our cash flow conversion is strong, and we have good visibility on returning capital to shareholders.  **[FIS_3405567_7]** **[FIS_3405567_14]** 

3. **Banking Growth Acceleration**  
   **Q:** What's driving the acceleration in Banking growth?  
   **A:** We're confident in Banking, expecting growth to accelerate in Q4 due to easy comps from last year and success in selling our strategic cores: **Modern Banking Platform, IBS, and Horizon**.  **[FIS_3405567_9]**  Organic growth is driven by transactions across debit, issuer capabilities, and accounts, typically in the **3% range**.  **[FIS_3405567_10]**  Adding new core sales and accounts is boosting recurring revenue, leading to a better second half compared to the first.  **[FIS_3405567_10]** 

4. **Dragonfly Acquisition Impact**  
   **Q:** What's the expected contribution from Dragonfly acquisition?  
   **A:** The Dragonfly deal is closing now, contributing less than **$10 million** in revenue for Q4.  **[FIS_3405567_6]**  It's dilutive to margins in the initial **12 months**, but we see strong synergy opportunities, especially on revenue.  **[FIS_3405567_6]**  It's a highly strategic acquisition that will benefit us in the long term.  **[FIS_3405567_6]** 

5. **Margin Outlook and TSA Roll-Off**  
   **Q:** How will margins be affected by TSA roll-offs next year?  
   **A:** We're on track with our margin guidance of **40 to 60 basis points** expansion.  **[FIS_3405567_18]**  We expect to be at the lower end due to TSA dis-synergies from Worldpay separation, estimated at **95 bps per year**.  **[FIS_3405567_18]**  However, we're ahead on cost-saving programs, aiming for savings of **165 to 175 bps**, which will offset these headwinds.  **[FIS_3405567_18]**  The transition will be manageable, with no surprises.  **[FIS_3405567_18]** 

6. **Worldpay Performance and Outlook**  
   **Q:** How is Worldpay's outperformance affecting growth outlook?  
   **A:** Worldpay is performing better under Charles Drucker and GTCR, with stronger revenue growth than anticipated.  **[FIS_3405567_17]**  Benefits from slower stand-up of operations and debt refinancing are contributing to outperformance.  **[FIS_3405567_17]**  We see no reason to adjust the **7.5% to 9.5%** growth outlook for future years but will work with our Worldpay partners on the long-term forecast.  **[FIS_3405567_17]** 

7. **Accounting Revision Impact**  
   **Q:** Does the prior period accounting revision affect outlook?  
   **A:** The accounting revision is immaterial, impacting EPS by **$0.01** in each of the first two quarters.  **[FIS_3405567_8]**  It was a non-cash adjustment related to a small card production business.  **[FIS_3405567_8]**  There's no impact on future operations, cash flow, or our confidence in the business.  **[FIS_3405567_8]** 

8. **Tax Rate Guidance and Pillar 2 Impact**  
   **Q:** Will international tax changes affect tax rate guidance?  
   **A:** Based on current legislation, we see no risk to our tax rate guidance of **12% to 13%** for the next few years.  **[FIS_3405567_15]**  Our circumstances are well under control, and we have strong visibility.  **[FIS_3405567_15]** 

9. **International Growth and MBP Win**  
   **Q:** What's driving international growth and MBP success?  
   **A:** We're seeing strong demand internationally, especially in Capital Markets products like treasury, risk, and processing in Europe and Asia Pacific.  **[FIS_3405567_19]**  We announced a Modern Banking Platform (MBP) win in Asia Pacific and see robust demand for international payments.  **[FIS_3405567_19]**  We're optimistic about continued momentum, including potential M&A to enhance our offerings.  **[FIS_3405567_19]** 

10. **Bank M&A Impact**  
    **Q:** How does bank M&A affect your business?  
    **A:** The bank M&A market is fairly suppressed, mostly active among smaller banks.  **[FIS_3405567_20]**  While we win some and lose some in that space, we benefit when larger banks—our clients—acquire smaller ones, as we gain from consolidation over time.  **[FIS_3405567_20]**  Overall, we're a net beneficiary due to our market position.  **[FIS_3405567_20]** 

c2a8105d0d3fe9e22f3b3803bbedfa1e843d9e91cbed7ccfad5ce6661b5e7325

1. **Revenue Growth Outlook**  
   **Q:** How is revenue growth accelerating in 2024?  
   **A:** Management is excited to guide to an accelerated total company revenue growth in 2024, especially in the Banking Solutions segment. They feel confident due to lapping nonrecurring headwinds from 2023 and strong sales momentum in the back half of 2023 into 2024, which will contribute to revenue in late '24 and into '25.  **[FIS_3375039_11]** 

2. **Margin Expansion and Cost Savings**  
   **Q:** What is the outlook for margins and operating leverage?  
   **A:** Management expects natural margin expansion as they shift sales toward higher-margin, technology-enabled solutions, particularly in Banking Solutions. The Future Forward program is outperforming expectations, offsetting dissynergies. They anticipate both Banking and Capital Markets segments to grow margins in 2024, marking a return to consistent margin expansion over time.  **[FIS_3375039_17]** **[FIS_3375039_18]** 

3. **Free Cash Flow and CapEx Guidance**  
   **Q:** What are the free cash flow conversion and CapEx assumptions for 2024?  
   **A:** They forecast free cash flow conversion of **85% to 90%** for 2024, up from 80% in 2023. CapEx is expected to decrease by 1 point to settle in the **7% to 8%** range, continuing to invest in the business while improving cash flow conversion.  **[FIS_3375039_19]** 

4. **Nonrecurring Revenue Reacceleration**  
   **Q:** Timing and magnitude of reacceleration in nonrecurring revenues?  
   **A:** The nonrecurring and professional services revenues in Banking will see headwinds dramatically reduced compared to 2023. While recurring revenue will outperform adjusted revenue growth, nonrecurring revenue may still present a slight headwind, but alignment between recurring and total revenue growth is improving.  **[FIS_3375039_14]** 

5. **Recurring Revenue Growth Trends**  
   **Q:** Why is recurring revenue growth decelerating in 2024?  
   **A:** The 7% recurring revenue growth in Q4 2023 was exceptionally strong due to an extraordinary payments performance and an easier prior-year comparison. Normalizing these factors, the trend rate is closer to **3% to 4%**. Banking recurring revenue is expected to outperform adjusted targets, but 7% isn't fully representative for 2024.  **[FIS_3375039_15]** 

6. **Sales Momentum and Demand**  
   **Q:** Where is sales momentum and traction coming from?  
   **A:** They're seeing strong demand in digital and money movement solutions, with banks focusing on enhancing digital capabilities to gather deposits. In Capital Markets, there's high demand across securities processing, commercial lending technology, treasury solutions, and ESG products, driven by needs beyond traditional financial institutions.  **[FIS_3375039_22]** 

7. **Sales Force Direction and Productivity**  
   **Q:** How is the sales force shifting towards higher-margin products?  
   **A:** They restructured sales incentives to favor higher-margin, recurring revenue products, leading to an **80 basis point** increase in the mix from low-margin to high-margin sales from 2022 to 2023. Sales productivity has significantly improved, contributing to confidence in revenue delivery in late 2024 and 2025.  **[FIS_3375039_24]** 

8. **Backlog and Growth Guidance**  
   **Q:** How does backlog connect to organic growth guidance?  
   **A:** The backlog stood at **$23 billion** in Q4, up from $22.2 billion in Q3, indicating acceleration. While backlog is consistent and supportive of revenue growth guidance, management plans to provide better KPIs at Investor Day, as backlog is a complex accounting figure.  **[FIS_3375039_20]** 

9. **Strength in Capital Markets**  
   **Q:** What supports the strength in Capital Markets and sustainable growth?  
   **A:** The strength comes from expanding total addressable market (TAM), which is growing at about **5%**. Capital Markets operates in attractive verticals and is expanding into new ones, providing a favorable tailwind and clear line of sight to meet 2024 guidance.  **[FIS_3375039_18]** 

10. **M&A Opportunities and Risks**  
    **Q:** Thoughts on M&A in the bank sector like Cap One-Discover?  
    **A:** Management views the Capital One-Discover deal as highlighting the strategic value of having diverse assets in the fintech ecosystem, which is critical for FIS. They have strategic relationships with both companies and see consolidation as a net positive, though future M&A activity is uncertain and dependent on regulatory environments.  **[FIS_3375039_12]** 

11. **FedNow Implementation Impact**  
    **Q:** Any changes from FedNow implementation?  
    **A:** There's significant demand from financial institutions for FedNow, with a large pipeline. Banks are keen on enabling it for money movement offerings. However, adoption by end customers remains to be seen, and it's uncertain how quickly it will be adopted compared to other money movement solutions.  **[FIS_3375039_21]** 

12. **Segment Cadence and Modeling**  
    **Q:** Guidance on revenue cadence by segment for modeling?  
    **A:** Capital Markets revenue is expected to be consistent each quarter in 2024. Banking is on an upward trend as sales pick up in the second half of 2023 flow through. For the non-controlling interest (NCI) contribution, the first quarter is lowest due to only two months of contribution, with subsequent quarters treated relatively equally.  **[FIS_3375039_25]** 

13. **Macro Assumptions and IT Spending**  
    **Q:** What are the macro assumptions in guidance and IT spending trends?  
    **A:** Consumer spend in payments is assumed to remain consistent in 2024. Banks are reducing discretionary IT spend but continue investing in digital capabilities, money movement, and regulatory technology to enhance services and focus on deposit gathering. Overall bank IT spending is consistent but shifting toward these areas.  **[FIS_3375039_13]** 

14. **Merger Integration Costs**  
    **Q:** When will integration costs decrease?  
    **A:** Integration costs are expected to remain elevated in 2024 and 2025 due to significant costs associated with the Worldpay separation, which could take up to 24 months. Other costs are being reduced to improve free cash flow conversion, but Worldpay separation is substantial.  **[FIS_3375039_16]** 

15. **Future EPS Trend and Dissynergies**  
    **Q:** Is normalized EPS growth rate sustainable excluding dissynergies?  
    **A:** Management advises caution in projecting future EPS growth by simply excluding dissynergies, as the Future Forward contributions will decrease from current levels. Detailed earnings power, revenue growth, and margin potential will be discussed at Investor Day in a few months.  **[FIS_3375039_23]** 

a51a25691005c4fe071101298678362483b5fd27e4cce7218efa8991e984b3f3

- **The Dragonfly acquisition is expected to be dilutive to company margins during the initial 12 months**, potentially impacting profitability.  **[FIS_3405567_6]**
- **There was a prior period accounting revision**, which, despite being labeled as immaterial by management, might raise concerns about financial reporting controls.  **[FIS_3405567_8]**
- **Core banking conversions are time-consuming**, and with "a lot of work to do," there may be delays in realizing benefits from new core banking clients.  **[FIS_3405567_16]**

7d64d82e6dbf65143fcaeefb3a37f199578adb7a32b60f837366b19f4c1017e7

- **15% Increase in Cross-Selling Activities:** FIS reported a **15% increase in cross-sell ACV** in the first half of 2024, particularly by selling digital and payment solutions into their core banking clients, indicating strong sales momentum and potential for continued revenue growth.  **[FIS_3396552_13]**
- **Significant Margin Expansion and Cost Savings Initiatives:** The company achieved strong **EBITDA margin expansion**, driven by substantial cost savings from their **Future Forward initiatives**, and remains confident in their long-term goal of **40 to 60 basis points margin enhancement**.  **[FIS_3396552_11]**  Additionally, ongoing cost savings initiatives are expected to deliver annual savings of **165 to 175 basis points per year over the next 24 months**.  **[FIS_3396552_23]**
- **Strong Performance in Capital Markets and Resilience to Market Volatility:** FIS's **Capital Markets segment is performing strongly**, taking market share, with good visibility for continued growth, particularly in international licenses.  **[FIS_3396552_18]**  Their platforms are stable and scalable, and the company is **not significantly exposed to consumer spending trends**, providing resilience in varying market conditions.  **[FIS_3396552_15]** **[FIS_3396552_17]**

ce2b535c1a439a31bf768fc4e7656fe3a6aa5c06d56bddb8ffb32a06adc7512e

- **Adjusted EBITDA margin contracted by 80 basis points** in the Capital Markets segment, primarily due to less favorable revenue mix.  **[FIS_3386627_3]**
- **Professional services revenue declined by 14%** in the Banking segment, reflecting a difficult year-over-year comparison related to a large client.  **[FIS_3386627_2]**
- **Free cash flow conversion rate was only 18%**, negatively impacted by temporary factors amounting to **$195 million**.  **[FIS_3386627_2]**

e658fb1b35abaab36392d2e20fa6d9b93219455cf8f456ada315a405d536eaae

- **Significant dissynergies from the Worldpay transaction are negatively impacting EPS growth, requiring increased cost savings to offset.**  **[FIS_3375039_23]**
- **Improved free cash flow conversion in 2023 was driven by one-time benefits, suggesting it may not be sustainable.**  **[FIS_3375039_19]**
- **The acceleration in Banking revenue growth is partly due to lapping prior headwinds, raising questions about the underlying growth drivers.**  **[FIS_3375039_11]**

d3e18425e8916b85d43e42ee50f63ebbafaa74731293e336b690997250652ae6

1. **Banking Growth Outlook**  
   **Q:** How confident are you in achieving Banking growth targets?  
   **A:** Management expressed high confidence in hitting full-year guidance for Banking growth, citing strong performance in Q1 and Q2, robust sales execution, and high visibility into Q3 and Q4 revenues. They anticipate at least **5% growth in Banking revenue in Q4**, benefiting from strong sales in the back half of last year and an easier comparison over prior year where growth was flat.  **[FIS_3396552_5]** 

2. **EBITDA Margins and Cost Savings**  
   **Q:** What's driving strong EBITDA margin expansion?  
   **A:** The company saw significant traction on cost savings initiatives, such as the Future Forward program, leading to strong margin growth in Q2. Margins grew due to visible cost management and favorable revenue mix with more profitable high license sales. Management remains confident in achieving annual margin enhancement of **40 to 60 basis points**, with a runway of **24 months** for further cost reductions, including resizing corporate expenses and leveraging automation and AI.  **[FIS_3396552_11]** **[FIS_3396552_22]** **[FIS_3396552_23]** 

3. **Worldpay EMI Contribution**  
   **Q:** Why is Worldpay's EMI contribution increasing?  
   **A:** The increase in Worldpay's EMI contribution is driven equally by improvements in EBITDA and interest expense savings from recent refinancing. Worldpay is operating the business more effectively, with revenue growth of **3% year-over-year** and improvements in margins, demonstrating good quality performance.  **[FIS_3396552_19]** **[FIS_3396552_24]** **[FIS_3396552_25]** 

4. **Capital Markets Performance**  
   **Q:** What's driving growth in the Capital Markets segment?  
   **A:** Capital Markets experienced strong growth, particularly in nonrecurring revenues, which had the strongest growth since 2021. This was due to stabilized professional services, which shifted from negative **5%** to positive **5%** growth, and buoyant license sales, especially internationally. This contributed to both revenue growth and margin strength in Q2 and supports a positive outlook for Q3.  **[FIS_3396552_18]** **[FIS_3396552_22]** 

5. **Consumer Spend Exposure**  
   **Q:** How exposed is FIS to consumer spending trends?  
   **A:** FIS has limited exposure to consumer spending fluctuations. The Banking segment earns revenue primarily from transactions, not spending volume, and is insulated from inflation impacts. Even with slight decreases in consumer transactions, the effect on revenue is minimal. The business proved resilient even during periods of low consumer spending, such as in 2020 when revenue still grew around **3%**.  **[FIS_3396552_17]** **[FIS_3396552_20]** 

6. **Demand Environment and 2025 Growth**  
   **Q:** How is demand in Banking, and when will new signings contribute?  
   **A:** The demand environment in Banking is stable, with consistent technology spending by growing banks, particularly in digital channels and payments. The company is on track for record core signings in 2024, which will contribute to growth in **2025 and beyond**, giving confidence in meeting midterm guidance. Current contributions in 2023 are from last year's wins.  **[FIS_3396552_9]** 

7. **Free Cash Flow Outlook**  
   **Q:** Why will free cash flow improve in the second half?  
   **A:** Free cash flow is expected to improve due to timing factors such as bonus payouts and interest payments, which skewed cash outflows to the first half. Management is confident in achieving the targeted **85% to 90%** free cash flow conversion for the year, implying a higher conversion rate of over **100%** in the second half.  **[FIS_3396552_16]** 

8. **Professional Services Acceleration**  
   **Q:** What's causing the acceleration in Professional Services?  
   **A:** The expected pickup in Professional Services in the second half is linked to an increase in new sales implementations and an easier comparison over the prior year when professional services revenue had declined. Stabilization and growth in this area reflect strong new business conversion.  **[FIS_3396552_18]** **[FIS_3396552_22]** 

9. **Share Repurchase Outlook**  
   **Q:** Will you meet your $4 billion share repurchase target?  
   **A:** The company is on track to achieve the **$4 billion** share repurchase target for the year, having completed **$2.5 billion** year-to-date. The remaining **$1.5 billion** is expected to be executed in the second half, skewed towards Q4, depending on cash repatriation timings.  **[FIS_3396552_24]** 

10. **M&A Pipeline**  
    **Q:** What's the status of your M&A pipeline?  
    **A:** The M&A pipeline is healthy, with the current economic environment creating opportunities as potential targets are more willing to sell at attractive prices. The company focuses on acquisitions that add product capabilities not developed organically, aiming for accretive revenue and margins. No acquisitions closed in Q2, but management is actively pursuing opportunities with a strict focus on return on invested capital.  **[FIS_3396552_11]** 

11. **Cross-Selling Progress**  
    **Q:** How is cross-selling performing?  
    **A:** Cross-selling activities are robust, with a **15% increase** in annual contract value from cross-sell in the first half of 2024. Significant traction is seen in Banking, cross-selling digital and payments into core clients, and leveraging products across Banking and Capital Markets. Management is pleased with the progress and expects continued opportunities.  **[FIS_3396552_13]** 

12. **Implementation Efficiency**  
    **Q:** Are implementations improving in Banking?  
    **A:** Implementation processes are efficient, with a robust pipeline of conversions. While there's always room for increased efficiency, management is confident in their capacity to onboard new sales without adding costs, supporting revenue growth in the back half of 2024 and into 2025.  **[FIS_3396552_12]** 

13. **Card Processing Outlook**  
    **Q:** How are you performing in card processing?  
    **A:** The company sees opportunities in card processing despite market changes and regulatory developments. They are focusing on winning new sales and leveraging competitive products integrated with core offerings. While nothing has accelerated markedly, the company is regaining focus in payments and beginning to see early wins in sales.  **[FIS_3396552_14]** 

14. **Market Volatility Impact**  
    **Q:** How does market volatility affect Capital Markets?  
    **A:** The trading and processing business in Capital Markets continues to perform well, with no significant impact from market volatility. The company processes a high volume of transactions with stable platforms, and revenues are not significantly tied to assets under management.  **[FIS_3396552_15]** 

15. **Future Cost Savings Initiatives**  
    **Q:** Are there ongoing cost-saving projects?  
    **A:** Beyond current cost savings, the company anticipates further opportunities over the next **24 months**, including eliminating Transition Service Agreements, resizing corporate expenses, and applying automation and AI to improve efficiency and customer service, leading to additional cost reductions.  **[FIS_3396552_23]** 

1feb5bf44d9bbe64efc18740a9c53371d490f1e8f051ce50f6077267d6b25bd1

- **FIS is experiencing strong growth and acceleration in its Banking segment**, with confidence in better second-half results driven by successful sales in all three strategic core platforms—Modern Banking Platform, IBS, and Horizon—and increased demand for their best-in-class product suite.  **[FIS_3405567_9]** **[FIS_3405567_16]** **[FIS_3405567_13]**
- **The company is seeing significant international success**, particularly in Capital Markets and Banking, with strong demand for their products in Europe and Asia Pacific, including a major Modern Banking Platform win in the Asia-Pacific region, positioning FIS well for continued growth in these markets.  **[FIS_3405567_19]** **[FIS_3405567_16]**
- **FIS is raising its full-year EPS guidance and has strong financial confidence**, evidenced by solid EBITDA performance and current business results, indicating a positive outlook for future operations.  **[FIS_3405567_8]**

e262e89f6b496c2765eb608c500ba29da257b4916d286a0bfab3cfea94458819

- **Strong momentum in sales, particularly in digital and payments solutions**, with high demand for FIS's Digital One Studio and money movement capabilities, as banks focus on enhancing digital services and gathering deposits.  **[FIS_3375039_22]**
- **Confidence in accelerating revenue growth in 2024**, especially in the Banking segment, due to strong recurring revenue and new sales in the latter half of 2023, giving FIS confidence in their guidance for increased total company revenue growth.  **[FIS_3375039_11]**
- **Benefiting from industry consolidation and strategic relationships with major financial institutions**, such as Capital One and Discover, positioning FIS as a net positive beneficiary due to serving larger financial institutions.  **[FIS_3375039_12]**

a28a65c040cbdd5649d9b2f65a88bd19fa3465987a1cb207762c085de5437603

- **Decline in Professional Services Due to Lack of New Wins**: The company experienced a step down in professional services revenue in the back half of last year, driven by a **lack of new wins** being converted.  **[FIS_3396552_22]**
- **Decrease in Debit Processing Volumes**: The **debit processing business has seen lighter volumes** in the second quarter and July, with **consumer transactions coming down slightly**.  **[FIS_3396552_17]**
- **Distraction Due to Focus on Worldpay**: The company admitted they **"got a little distracted"** focusing on Worldpay, impacting their payments business, though they are now refocusing on banking and digital offerings.  **[FIS_3396552_14]**

3c737400991bbbaded35303d84e85d26a49d24b09a71d2e95dc0e8db8eff4010

Fidelity National Information Services Inc (FIS)

Financials