FIS Reports Second Quarter 2014 Results

  FIS Reports Second Quarter 2014 Results

  *Revenue of $1.6 billion, up 6 percent for the quarter
  *Adjusted EPS from continuing operations of $0.75, up 6 percent for the
    quarter
  *$463  million in share repurchases and cash dividends returned to
    shareholders year to date

Business Wire

JACKSONVILLE, Fla. -- July 29, 2014

FIS™ (NYSE:FIS), the world’s largest provider of banking and payments
technology solutions, and a global leader in consulting and outsourcing
solutions, today announced second quarter revenue increased 6 percent to $1.60
billion compared to $1.51 billion a year earlier. GAAP net earnings from
continuing operations attributable to common stockholders increased to $180
million, or $0.62 per diluted share, from $92 million, or $0.31 per diluted
share in the prior year quarter.

Non-GAAP adjusted net earnings from continuing operations attributable to
common stockholders increased to $217 million in the second quarter 2014 from
$210 million in the prior year quarter and adjusted net earnings per diluted
share increased 6 percent to $0.75 from $0.71 in the second quarter 2013.
Second quarter 2014 non-GAAP adjusted net earnings from continuing operations
excludes acquisition-related purchase amortization of $0.13 per share and the
prior year quarter excludes debt refinancing and other costs of $0.26 per
diluted share and acquisition-related purchase amortization of $0.14 per
diluted share. Second quarter 2014 revenue increased 5 percent on an organic
basis, which excludes the impact of acquisitions and changes in foreign
currency, from the prior year quarter. Adjusted EBITDA increased to $466
million in the second quarter 2014, up 3 percent from $451 million in the
prior year period. Adjusted EBITDA margin was 29.2 percent compared to 29.8
percent in the prior year quarter, primarily reflecting a change in revenue
mix and increased investment in the global financial institutions market.

“FIS achieved strong results in the second quarter underscored by growth in
organic revenue and earnings consistent with our 2014 outlook,” said Frank
Martire, chairman and chief executive officer of FIS. “This performance
reflects our success in delivering strategic value to our clients with an
unmatched value proposition of integrated technology, services and consulting
solutions on a global scale. We are excited about the future of our company
and remain focused on optimizing our business to drive long-term, profitable
growth.”

For the six months ended June 30, 2014, GAAP revenue increased 4 percent to
$3.12 billion, from $2.99 billion in the prior year period. GAAP net earnings
from continuing operations attributable to common stockholders increased to
$336 million, or $1.16 per diluted share, from $241 million, or $0.82 per
diluted share, in the prior year period.

Non-GAAP adjusted net earnings from continuing operations attributable to
common stockholders increased to $417 million in the first half of 2014, up 6
percent from $393 million in the prior year period. Adjusted net earnings per
diluted share increased 8 percent to $1.43 from $1.33 in the first half of
2013. First half 2014 non-GAAP adjusted net earnings from continuing
operations excludes acquisition-related purchase amortization of $0.26 per
share and includes $0.02 per share related to contract settlement revenue, and
the 2013 period excludes debt refinancing and other costs of $0.26 per diluted
share, acquisition-related purchase amortization of $0.27 per diluted share
and excludes a gain related to the acquisition of mFoundry of $0.02 per
diluted share. Adjusted EBITDA for the six months increased 4 percent to $914
million from $880 million in the prior year period. Adjusted EBITDA margin was
29.2 percent compared to 29.4 percent in the prior year period.

Definitions of non-GAAP financial measures and reconciliations of non-GAAP
measures to related GAAP measures are provided in subsequent sections of the
press release narrative and supplemental schedules.

Segment Information

The following is a review of second quarter 2014 results by segment:

  *Financial Solutions:

Revenue increased 7 percent to $629 million, from $587 million in the second
quarter 2013 and increased 6 percent on an organic basis, driven by growth in
consulting, professional services and digital banking. Contractual fees
related to a client conversion also contributed to the results. Adjusted
EBITDA increased 8 percent to $249 million from $231 million in the second
quarter 2013, while adjusted EBITDA margin was 39.6 percent compared to 39.4
percent a year earlier.

  *Payment Solutions:

Revenue was $624 million compared to $623 million in the second quarter 2013.
Growth in network solutions, bill payment services and image and output
solutions was offset primarily by lower termination fees. Adjusted EBITDA was
$253 million compared to $263 million in the second quarter of 2013, primarily
reflecting lower termination fees and revenue mix. Adjusted EBITDA margin was
40.6 percent compared to 42.2 percent a year earlier.

  *International Solutions:

Revenue increased 14 percent to $347 million from $304 million in the second
quarter 2013 and increased 12 percent on an organic basis. Currency impact was
immaterial in the quarter. The increase in revenue reflects growth across all
major regions. Adjusted EBITDA increased 11 percent to $73 million from $66
million in the second quarter of 2013. Adjusted EBITDA margin was 21.1 percent
compared to 21.8 percent a year earlier, primarily reflecting increased
investment in the global financial institutions market.

  *Corporate/Other:

Corporate costs totaled $109 million in the second quarter 2014, unchanged
from the prior year quarter, reflecting diligent cost management. Interest
expense, net of interest income, decreased to $42 million from $49 million in
the second quarter 2013, reflecting lower debt costs resulting from debt
refinancing in the second quarter of 2013. The effective tax rate was 30.2
percent in the second quarter of 2014 compared to 30.0 percent in the second
quarter of 2013, reflecting the favorable resolution of certain tax matters in
both periods.

Balance Sheet and Cash Flow

Cash and cash equivalents totaled $794 million as of June 30, 2014 compared to
$548 million as of year-end 2013. Debt outstanding totaled $4.9 billion
compared to $4.5 billion as of December 31, 2013.

Net cash provided by operations increased to $256 million in the second
quarter of 2014 from $157 million in the prior year quarter. Adjusted cash
flow from operations was $245 million in the second quarter of 2014 compared
to $199 million for the prior year quarter. Capital expenditures totaled $97
million compared to $83 million in the second quarter 2013. Free cash flow
increased to $149 million for second quarter of 2014 from $115 million in the
2013 quarter.

FIS repurchased 2.8 million common shares at a total cost of $151 million in
the second quarter 2014 and 6.0 million shares at a total cost of $326 million
in the first six months of 2014. Approximately $1,674 million remained under
the existing share repurchase authorization as of June 30, 2014. The company
paid shareholder dividends of $68 million in the second quarter 2014 and $137
million in the first six months of 2014.

2014 Outlook

FIS reiterated its full year 2014 outlook as follows:

  *Organic revenue growth of 4.5 to 6.5 percent
  *EBITDA, as adjusted, growth of 4.5 to 6.5 percent
  *EPS from continuing operations of $3.05 to $3.16, as adjusted, an increase
    of 8 to 12 percent
  *Free cash flow is expected to approximate adjusted net earnings

Webcast

FIS will host a webcast on July 29, 2014, to discuss second quarter 2014
results beginning at 8:30 a.m. ET. To listen to the live event and to access a
supplemental slide presentation, go to the Investor Relations section at
www.fisglobal.com and click on “News and Events.” A webcast replay will be
available on FIS’ Investor Relations Web site, and a telephone replay will be
available through August 12, 2014 by dialing 800.475.6701 (U.S.) or
320.365.3844 (International). The access code is 331212. To access a .PDF
version of this release and accompanying financial tables, go to
www.investor.fisglobal.com.

Use of Non-GAAP Financial Information

Generally Accepted Accounting Principles (GAAP) is the term used to refer to
the standard framework of guidelines for financial accounting. GAAP includes
the standards, conventions, and rules accountants follow in recording and
summarizing transactions and in the preparation of financial statements. In
addition to reporting financial results in accordance with GAAP, the Company
has provided non-GAAP financial measures, which it believes are useful to help
investors better understand its financial performance, competitive position
and prospects for the future. For these reasons, management also uses these
measures in part to assess its performance.

These non-GAAP measures include organic revenue, adjusted revenue, EBITDA,
adjusted EBITDA and adjusted EBITDA margin, adjusted cash flow from
operations, adjusted net earnings (including per share amounts) and free cash
flow.

Organic revenue includes reported revenue (adjusted revenue for 2014) plus
pre-acquisition revenue for companies acquired during the applicable reporting
periods. Organic revenue excludes the impact of foreign currency fluctuation
in 2014.

Adjusted revenue (2014) includes reported revenue and is increased by $9
million for a negotiated contract cash settlement for the extinguishment of
certain contractual minimums with a reseller. Although the 2014 cash
settlement has no contractual performance obligation, under GAAP the cash
settlement revenue is amortized in this circumstance over the remaining
relationship with the reseller.

EBITDA is earnings from continuing operations before interest, taxes,
depreciation and amortization

Adjusted EBITDA (2014 comparative data) includes the contract cash settlement
revenue.

Adjusted EBITDA (2013 comparative data) excludes adjustments related to the
2010 acquisition of Capco.

Adjusted net earnings (2014 comparative data) excludes the after-tax impact of
acquisition-related amortization and includes the after-tax impact of adjusted
revenue.

Adjusted net earnings (2013 comparative data) excludes the after-tax impact of
acquisition related amortization, a net benefit related to a gain on the
mFoundry acquisition, debt issuance and refinancing costs and adjustments
related to the Capco acquisition.

Adjusted net earnings per diluted share, or adjusted EPS, is equal to adjusted
net earnings divided by weighted average diluted shares outstanding.

Adjusted cash flow from operations (2014 comparative data) is GAAP cash flow
from operations as adjusted for the net change in settlement assets and
obligations and certain payments for contingent purchase price and incentive
compensation programs associated with the 2010 acquisition of Capco.

Adjusted cash flow from operations (2013 comparative data) is GAAP cash flow
from operations as adjusted for the net change in settlement assets and
obligations and excludes the premium paid related to the early redemption of
senior notes.

Free cash flow is adjusted operating cash flow less capital expenditures. Free
cash flow does not represent our residual cash flow available for
discretionary expenditures, since we have mandatory debt service requirements
and other non-discretionary expenditures that are not deducted from the
measure.

Any non-GAAP measures should be considered in context with the GAAP financial
presentation and should not be considered in isolation or as a substitute for
GAAP net earnings. Further, FIS’ non-GAAP measures may be calculated
differently from similarly titled measures of other companies. Reconciliations
of these non-GAAP measures to related GAAP measures are provided in the
attached schedules and in the Investor Relations section of the FIS Web site,
www.fisglobal.com.

About FIS

FIS is the world’s largest provider of banking and payments technology
solutions, and a global leader in consulting and outsourcing solutions. With a
long history deeply rooted in the financial services sector, FIS serves more
than 14,000 institutions in over 110 countries. Headquartered in Jacksonville,
Fla., FIS employs more than 39,000 people worldwide and holds leadership
positions in payment processing and banking solutions, providing software,
services and outsourcing of the technology that drives financial institutions.
First in financial technology, FIS tops the annual FinTech 100 list, is 434 on
the Fortune 500 and is a member of Standard & Poor’s 500^®Index. For more
information about FIS, visit www.fisglobal.com.

Follow us on Facebook (facebook.com/FIStoday) and Twitter (@FISGlobal).

Forward-Looking Statements

This news release and today’s webcast contain “forward-looking statements”
within the meaning of the U.S. federal securities laws. Statements that are
not historical facts, including statements about future revenue, organic
revenue, earnings before interest, taxes, depreciation and amortization
(“EBITDA”), earnings per share and margin expansion, as well as other
statements about our expectations, hopes, intentions, or strategies regarding
the future, are forward-looking statements. These statements relate to future
events and our future results, and involve a number of risks and
uncertainties. Forward-looking statements are based on management’s beliefs,
as well as assumptions made by, and information currently available to,
management. Any statements that refer to beliefs, expectations, projections or
other characterizations of future events or circumstances and other statements
that are not historical facts are forward-looking statements.

Actual results, performance or achievement could differ materially from those
contained in these forward-looking statements. The risks and uncertainties
that forward-looking statements are subject to include, without limitation:

  *changes in general economic, business and political conditions, including
    the possibility of intensified international hostilities, acts of
    terrorism, and changes in either or both the United States and
    international lending, capital and financial markets;
  *the effect of legislative initiatives or proposals, statutory changes,
    governmental or other applicable regulations and/or changes in industry
    requirements, including privacy regulations;
  *the risks of reduction in revenue from the elimination of existing and
    potential customers due to consolidation in, or new laws or regulations
    affecting, the banking, retail and financial services industries or due to
    financial failures or other setbacks suffered by firms in those
    industries;
  *changes in the growth rates of the markets for our solutions;
  *failures to adapt our solutions to changes in technology or in the
    marketplace;
  *internal or external security breaches of our systems, including those
    relating to the theft of personal information and computer viruses
    affecting our software or platforms, and the reactions of customers, card
    associations, government regulators and others to any such events;
  *the reaction of our current and potential customers to communications from
    us or our regulators regarding information security, risk management,
    internal audit or other matters;
  *competitive pressures on pricing related to our solutions including the
    ability to attract new, or retain existing, customers;
  *an operational or natural disaster at one of our major operations centers;
  *and other risks detailed in “Risk Factors” and other sections of the
    Company’s Annual Report on Form 10-K for the fiscal year ended December
    31, 2013 and other filings with the SEC.

Other unknown or unpredictable factors also could have a material adverse
effect on our business, financial condition, results of operations and
prospects. Accordingly, readers should not place undue reliance on these
forward-looking statements. These forward-looking statements are inherently
subject to uncertainties, risks and changes in circumstances that are
difficult to predict. Except as required by applicable law or regulation, we
do not undertake (and expressly disclaim) any obligation and do not intend to
publicly update or review any of these forward-looking statements, whether as
a result of new information, future events or otherwise.

Fidelity National Information Services, Inc.
Earnings Release Supplemental Financial Information
July 29, 2014


Exhibit A     Consolidated Statements of Earnings - Unaudited for the
                  three and six months ended June 30, 2014 and 2013
                  
Exhibit B         Consolidated Balance Sheets - Unaudited as of June 30, 2014
                  and December 31, 2013
                  
Exhibit C         Consolidated Statements of Cash Flows - Unaudited for the
                  six months ended June 30, 2014 and 2013
                  
Exhibit D         Supplemental Non-GAAP Financial Information - Unaudited for
                  the three and six months ended June 30, 2014 and 2013
                  
Exhibit E         Supplemental GAAP to Non-GAAP Reconciliation - Unaudited for
                  the three and six months ended June 30, 2014 and 2013

                                                               
FIDELITY NATIONAL INFORMATION SERVICES, INC.
CONSOLIDATED STATEMENTS OF EARNINGS — UNAUDITED
(In millions, except per share data)

Exhibit A

                         Three months ended          Six months ended

                         June 30,                    June 30,
                         2014        2013         2014        2013      
Processing and           $ 1,599.1     $ 1,512.8     $ 3,119.4     $ 2,990.1
services revenues
Cost of revenues         1,092.8      1,031.5      2,140.4      2,040.9   
Gross profit             506.3         481.3         979.0         949.2
Selling, general and
administrative           196.6        232.6        383.2        424.7     
expenses
Operating income         309.7        248.7        595.8        524.5     
Other income
(expense):
Interest expense, net    (41.9     )   (49.4     )   (83.0     )   (101.1    )
Other income             (1.2      )   (61.9     )   (1.7      )   (56.8     )
(expense), net
Total other income       (43.1     )   (111.3    )   (84.7     )   (157.9    )
(expense), net
Earnings from
continuing operations    266.6         137.4         511.1         366.6
before income taxes
Provision for income     80.4         41.2         161.6        116.6     
taxes
Earnings from
continuing operations,   186.2         96.2          349.5         250.0
net of tax
Earnings (loss) from
discontinued             (0.9      )   12.8         (3.1      )   8.4       
operations, net of tax
Net earnings             185.3         109.0         346.4         258.4
Net earnings
attributable to          (6.5      )   (4.2      )   (13.1     )   (9.5      )
noncontrolling
interest
Net earnings
attributable to FIS      $ 178.8      $ 104.8      $ 333.3      $ 248.9   
common stockholders
Net earnings per
share-basic from
continuing operations    $ 0.63        $ 0.32        $ 1.17        $ 0.83
attributable to FIS
common stockholders
Net earnings (loss)
per share-basic from
discontinued             —            0.04         (0.01     )   0.03      
operations
attributable to FIS
common stockholders
Net earnings per
share-basic              $ 0.63       $ 0.36       $ 1.16       $ 0.86    
attributable to FIS
common stockholders *
Weighted average
shares                   285.5        289.9        286.7        290.5     
outstanding-basic
Net earnings per
share-diluted from
continuing operations    $ 0.62        $ 0.31        $ 1.16        $ 0.82
attributable to FIS
common stockholders
Net earnings (loss)
per share-diluted from
discontinued             —            0.04         (0.01     )   0.03      
operations
attributable to FIS
common stockholders
Net earnings per
share-diluted            $ 0.62       $ 0.36       $ 1.15       $ 0.84    
attributable to FIS
common stockholders *
Weighted average
shares                   289.2        294.3        290.5        294.8     
outstanding-diluted
Amounts attributable
to FIS common
stockholders:
Earnings from
continuing operations,   $ 179.7       $ 92.0        $ 336.4       $ 240.5
net of tax
Earnings (loss) from
discontinued             (0.9      )   12.8         (3.1      )   8.4       
operations, net of tax
Net earnings
attributable to FIS      $ 178.8      $ 104.8      $ 333.3      $ 248.9   
common stockholders

* Amounts may not sum due to rounding.

FIDELITY NATIONAL INFORMATION SERVICES, INC.
CONSOLIDATED BALANCE SHEETS — UNAUDITED
(In millions, except per share data)

                                                               Exhibit B
                                                                            
                                                  As of          As of
                                                  June 30,       December 31,
                                                  2014          2013       
Assets
Current assets:
Cash and cash equivalents                         $ 793.7        $ 547.5
Settlement deposits                               439.5          327.4
Trade receivables, net                            1,018.2        987.9
Settlement receivables                            262.4          178.2
Other receivables                                 41.2           62.1
Due from Brazilian venture partner                38.2           35.8
Prepaid expenses and other current assets         167.7          154.1
Deferred income taxes                             65.7           58.9
Assets held for sale                              8.3           —          
Total current assets                              2,834.9        2,351.9
Property and equipment, net                       459.0          439.0
Goodwill                                          8,517.7        8,500.0
Intangible assets, net                            1,246.5        1,339.3
Computer software, net                            869.7          856.5
Deferred contract costs, net                      212.2          206.8
Other noncurrent assets                           300.8         266.6      
Total assets                                      $ 14,440.8    $ 13,960.1 
                                                                            
Liabilities and Equity
Current liabilities:
Accounts payable and accrued liabilities          $ 648.5        $ 768.0
Settlement payables                               730.7          518.6
Deferred revenues                                 276.0          243.6
Current portion of long-term debt                 23.0           128.8
Due to Brazilian venture partner                  20.1           13.7
Liabilities held for sale                         3.0           —          
Total current liabilities                         1,701.3        1,672.7
Long-term debt, excluding current portion         4,900.5        4,339.8
Deferred income taxes                             816.4          823.6
Due to Brazilian venture partner                  32.7           34.5
Deferred revenues                                 28.2           27.2
Other long-term liabilities                       261.6         325.0      
Total liabilities                                 7,740.7       7,222.8    
Equity:
FIS stockholders’ equity:
Preferred stock $0.01 par value                   —              —
Common stock $0.01 par value                      3.9            3.9
Additional paid in capital                        7,286.5        7,247.6
Retained earnings                                 2,538.0        2,341.9
Accumulated other comprehensive earnings (loss)   12.9           (9.9       )
Treasury stock $0.01 par value                    (3,319.2   )   (3,003.0   )
Total FIS stockholders’ equity                    6,522.1        6,580.5
Noncontrolling interest                           178.0         156.8      
Total equity                                      6,700.1       6,737.3    
Total liabilities and equity                      $ 14,440.8    $ 13,960.1 
                                                                            

FIDELITY NATIONAL INFORMATION SERVICES, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS — UNAUDITED
(In millions)
                                                                 
                                                                    Exhibit C
                                                                             
                                                     Six months ended June 30,
                                                     2014          2013     
Cash flows from operating activities:
Net earnings                                         $   346.4      $  258.4
Adjustment to reconcile net earnings to net cash
provided by operating activities:
Depreciation and amortization                        309.1          305.5
Amortization of debt issue costs                     6.7            14.6
Gain on sale of assets                               —              (26.8    )
Gain on mFoundry                                     —              (9.2     )
Stock-based compensation                             26.6           26.4
Deferred income taxes                                (19.0      )   (24.7    )
Excess income tax benefit from exercise of stock     (10.1      )   (14.5    )
options
Other operating activities, net                      (1.9       )   1.7
Net changes in assets and liabilities, net of
effects from acquisitions and foreign currency:
Trade receivables                                    (22.4      )   (26.1    )
Settlement activity                                  15.8           (3.6     )
Prepaid expenses and other assets                    (35.7      )   (60.7    )
Deferred contract costs                              (40.4      )   (37.3    )
Deferred revenue                                     30.9           (26.0    )
Accounts payable, accrued liabilities and other      (126.9     )   (12.9    )
liabilities
Net cash provided by operating activities            479.1         364.8    
                                                                             
Cash flows from investing activities:
Additions to property and equipment                  (77.3      )   (59.5    )
Additions to computer software                       (109.3     )   (97.5    )
Proceeds from sale of assets                         —              26.8
Acquisitions, net of cash acquired and equity        (29.0      )   (130.1   )
investments
Other investing activities, net                      9.3           (22.8    )
Net cash used in investing activities                (206.3     )   (283.1   )
                                                                             
Cash flows from financing activities:
Borrowings                                           4,430.1        7,151.6
Repayment of borrowings and capital lease            (3,976.6   )   (6,776.0 )
obligations
Debt issuance costs                                  (6.6       )   (17.0    )
Excess income tax benefit from exercise of stock     10.1           14.5
options
Proceeds from exercise of stock options              15.5           72.9
Treasury stock activity                              (355.6     )   (230.8   )
Dividends paid                                       (137.9     )   (127.9   )
Other financing activities, net                      (18.3      )   (11.8    )
Net cash (used in) provided by financing             (39.3      )   75.5     
activities
                                                                             
Effect of foreign currency exchange rate changes     12.7          (21.7    )
on cash
                                                                             
Net increase in cash and cash equivalents            246.2          135.5
Cash and cash equivalents, at beginning of period    547.5         517.6    
Cash and cash equivalents, at end of period          $   793.7     $  653.1 


FIDELITY NATIONAL INFORMATION SERVICES, INC.
SUPPLEMENTAL NON-GAAP FINANCIAL INFORMATION — UNAUDITED
(In millions)

                                                               Exhibit D

               Three months ended June 30, 2014
               Financial   Payment     International   Corporate
                                                                    Consolidated
               Solutions   Solutions   Solutions       and Other
Processing
and services   $ 629.0    $ 623.6    $   346.8      $ (0.3   )   $  1,599.1 
revenue
Operating
income         $ 208.0     $ 232.9     $   51.7        $ (182.9 )   $  309.7
(loss)
Non-GAAP
adjustments:
Purchase
price          —          —          —              54.0        54.0       
amortization
Non-GAAP
operating      208.0       232.9       51.7            (128.9   )   363.7
income
(loss)
                                                                               
Depreciation
and
amortization   41.0       20.5       21.5           19.5        102.5      
from
continuing
operations
Adjusted       $ 249.0    $ 253.4    $   73.2       $ (109.4 )   $  466.2   
EBITDA
                                                                               
Non-GAAP
operating      33.1    %   37.3    %   14.9       %    N/M          22.7       %
margin
                                                                               
Adjusted
EBITDA         39.6    %   40.6    %   21.1       %    N/M          29.2       %
margin
                                                                               
                                                                               
               Three months ended June 30, 2013
               Financial   Payment     International   Corporate
                                                                    Consolidated
               Solutions   Solutions   Solutions       and Other
Processing
and services   $ 587.0    $ 623.1    $   303.8      $ (1.1   )   $  1,512.8 
revenue
Operating
income         $ 190.8     $ 242.8     $   47.4        $ (232.3 )   $  248.7
(loss)
Non-GAAP
adjustments:
Capco
acquisition    —           —           —               50.2         50.2
adjustment
Purchase
price          —          —          —              57.3        57.3       
amortization
Non-GAAP
operating      190.8       242.8       47.4            (124.8   )   356.2
income
(loss)
Depreciation
and
amortization   40.4       20.1       18.7           15.8        95.0       
from
continuing
operations
Adjusted       $ 231.2    $ 262.9    $   66.1       $ (109.0 )   $  451.2   
EBITDA
                                                                               
Non-GAAP
operating      32.5    %   39.0    %   15.6       %    N/M          23.5       %
margin
                                                                               
Adjusted
EBITDA         39.4    %   42.2    %   21.8       %    N/M          29.8       %
margin
                                                                               
Total
revenue
growth from
prior year
period
Three months
ended June     7.2     %   0.1     %   14.2       %    N/M          5.7        %
30, 2014



FIDELITY NATIONAL INFORMATION SERVICES, INC.
SUPPLEMENTAL NON-GAAP FINANCIAL INFORMATION — UNAUDITED
(In millions)
                                                       Exhibit D (continued)

               Six months ended June 30, 2014
               Financial     Payment       International   Corporate
                                                                       Consolidated
               Solutions     Solutions     Solutions       and Other
Processing
and services   $ 1,215.8     $ 1,243.1     $   661.2       $ (0.7   )   $  3,119.4
revenue
Non-GAAP
adjustments:
Contract       —            9.0          —              —           9.0        
settlement
Adjusted
processing     $ 1,215.8    $ 1,252.1    $   661.2      $ (0.7   )   $  3,128.4 
and services
revenue
Operating
income         $ 395.0       $ 468.4       $   93.5        $ (361.1 )   $  595.8
(loss)
Non-GAAP
adjustments:
Contract       —             9.0           —               —            9.0
settlement
Purchase
price          —            —            0.1            108.8       108.9      
amortization
Non-GAAP
operating      395.0         477.4         93.6            (252.3   )   713.7
income
(loss)
                                                                                   
Depreciation
and
amortization   80.9         40.4         41.0           37.9        200.2      
from
continuing
operations
Adjusted       $ 475.9      $ 517.8      $   134.6      $ (214.4 )   $  913.9   
EBITDA
                                                                                   
Non-GAAP
operating      32.5      %   38.1      %   14.2       %    N/M          22.8       %
margin
                                                                                   
Adjusted
EBITDA         39.1      %   41.4      %   20.4       %    N/M          29.2       %
margin
                                                                                   
                                                                                   
               Six months ended June 30, 2013
               Financial     Payment       International   Corporate
                                                                        Consolidated
               Solutions     Solutions     Solutions       and Other
Processing
and services   $ 1,162.3    $ 1,234.9    $   594.7      $ (1.8   )   $  2,990.1 
revenue
Operating
income         $ 379.2       $ 481.3       $   88.4        $ (424.4 )   $  524.5
(loss)
Non-GAAP
adjustments:
Capco
acquisition    —             —             —               50.2         50.2
adjustment
Purchase
price          —            —            0.1            117.5       117.6      
amortization
Non-GAAP
operating      379.2         481.3         88.5            (256.7   )   692.3
income
(loss)
Depreciation
and
amortization   79.6         39.9         37.4           31.0        187.9      
from
continuing
operations
Adjusted       $ 458.8      $ 521.2      $   125.9      $ (225.7 )   $  880.2   
EBITDA
                                                                                   
Non-GAAP
operating      32.6      %   39.0      %   14.9       %    N/M          23.2       %
margin
                                                                                   
Adjusted
EBITDA         39.5      %   42.2      %   21.2       %    N/M          29.4       %
margin
                                                                                   
Total
revenue
growth from
prior year
period
Six months
ended June     4.6       %   1.4       %   11.2       %    N/M          4.6        %
30, 2014


FIDELITY NATIONAL INFORMATION SERVICES, INC.
SUPPLEMENTAL NON-GAAP ORGANIC REVENUE MEASURES — UNAUDITED
(In millions)

                                                               Exhibit D (continued)

                Three months ended June 30,
                2014                                  2013
                                        Constant                                  Adjusted     Organic
                                        Currency                    In Year        Base          Revenue
                Revenue       FX        Revenue       Revenue       Acquisitions   Revenue       Growth
Financial       $ 629.0       $ 0.6     $ 629.6       $ 587.0       $   4.5        $ 591.5       6.4   %
Solutions
Payment         623.6         0.4       624.0         623.1         —              623.1         0.1   %
Solutions
International   346.8         0.1       346.9         303.8         5.8            309.6         12.0  %
Solutions
Corporate and   (0.3      )   —        (0.3      )   (1.1      )   —             (1.1      )   N/M
Other
Total
processing
and services    $ 1,599.1    $ 1.1    $ 1,600.2    $ 1,512.8    $   10.3      $ 1,523.1    5.1   %

revenue


                                                                                          
                                                                                                        
                Six months ended June 30,
                2014                                   2013
                                         Constant                                   Adjusted      Organic
                                         Currency                    In Year        Base          Revenue
                Revenue (1)   FX         Revenue       Revenue       Acquisitions   Revenue       Growth
Financial       $ 1,215.8     $ 1.8      $ 1,217.6     $ 1,162.3     $   8.3        $ 1,170.6     4.0   %
Solutions
Payment         1,252.1       0.9        1,253.0       1,234.9       —              1,234.9       1.5   %
Solutions
International   661.2         14.1       675.3         594.7         11.6           606.3         11.4  %
Solutions
Corporate and   (0.7      )   —         (0.7      )   (1.8      )   —             (1.8      )   N/M
Other
Total
processing
and services    $ 3,128.4    $ 16.8    $ 3,145.2    $ 2,990.1    $   19.9      $ 3,010.0    4.5   %

revenue


(1) As adjusted. See note (1) for exhibit E.

FIDELITY NATIONAL INFORMATION SERVICES, INC.
SUPPLEMENTAL NON-GAAP CASH FLOW MEASURES — UNAUDITED
(In millions)

                                        Exhibit D (continued)
                                                            
                                         Three months ended   Six months ended
                                         June 30, 2014        June 30, 2014
Net cash provided by operating           $    256.5           $    479.1
activities
Non-GAAP adjustments:
Capco acquisition related payments (1)   2.1                  30.1
Settlement activity                      (13.3         )      (15.8        )
Adjusted cash flows from operations      245.3                493.4
Capital expenditures                     (96.7         )      (186.6       )
Free cash flow                           $    148.6          $    306.8   




                                        Three months ended  Six months ended
                                         June 30, 2013        June 30, 2013
Net cash provided by operating           $    157.3           $    364.8
activities
Non-GAAP adjustments:
Settlement activity                      (10.3         )      3.6
Bond premium payment (2)                 51.6                51.6         
Adjusted cash flows from operations      198.6                420.0
Capital expenditures                     (83.3         )      (157.0       )
Free cash flow                           $    115.3          $    263.0   


(1) Free cash flow for the three and six months ended June 30, 2014 excludes
payments for contingent purchase price and the New Hires and Promotions
Incentive Plan associated with the 2010 acquisition of Capco. In accordance
with the accounting guidance, contingent purchase price payments are included
in other financing activities on the Statement of Cash Flows only to the
extent they represent the original liability established at the acquisition
date. Payments related to subsequent adjustments to the contingent purchase
price are included in the net cash provided by operating activities.

(2) Free cash flow for the three and six months ended June 30, 2013 is
adjusted for the one time bond premium payment on our 2017 senior notes that
were redeemed in May 2013.

FIDELITY NATIONAL INFORMATION SERVICES, INC.
SUPPLEMENTAL GAAP TO NON-GAAP RECONCILIATION — UNAUDITED
(In millions)

                                  Exhibit E

                                   Three months ended     Six months ended
                                   June 30,                June 30,
                                   2014      2013       2014      2013
                                                                  
Net earnings from continuing       $ 179.7     $ 92.0      $ 336.4     $ 240.5
operations attributable to FIS
Plus provision for income taxes    80.4        41.2        161.6       116.6
Interest expense, net              41.9        49.4        83.0        101.1
Other, net                         7.7        66.1       14.8       66.3
                                                                       
Operating income                   309.7       248.7       595.8       524.5
Non-GAAP adjustments:
Contract settlement                —           —           9.0         —
Capco acquisition adjustment       —           50.2        —           50.2
Purchase price amortization        54.0       57.3       108.9      117.6
                                                                       
Non-GAAP operating income          363.7       356.2       713.7       692.3
                                                                       
Depreciation and amortization      102.5      95.0       200.2      187.9
from continuing operations
Adjusted EBITDA                    $ 466.2    $ 451.2    $ 913.9    $ 880.2


FIDELITY NATIONAL INFORMATION SERVICES, INC.
SUPPLEMENTAL GAAP TO NON-GAAP RECONCILIATION — UNAUDITED
(In millions)

                                                    Exhibit E (continued)
                                                                 
                                        Three months ended June 30, 2014
                                                      Purchase
                                                      Price
                                        GAAP          Amort. (5)   Non-GAAP
Processing and services revenue         $ 1,599.1     $  —         $ 1,599.1
Cost of revenues                        1,092.8      (54.0    )   1,038.8   
Gross profit                            506.3         54.0         560.3
Selling, general and administrative     196.6        —           196.6     
Operating income                        309.7        54.0        363.7     
Other income (expense):
Interest income (expense), net          (41.9     )   —            (41.9     )
Other income (expense), net             (1.2      )   —           (1.2      )
Total other income (expense)            (43.1     )   —           (43.1     )
Earnings (loss) from continuing         266.6         54.0         320.6
operations before income taxes
Provision for income taxes              80.4         16.3        96.7      
Earnings (loss) from continuing         186.2         37.7         223.9
operations, net of tax
Earnings (loss) from discontinued       (0.9      )   —           (0.9      )
operations, net of tax (6)
Net earnings (loss)                     185.3         37.7         223.0
Net (earnings) loss attributable to     (6.5      )   —           (6.5      )
noncontrolling interest
Net earnings (loss) attributable to     $ 178.8      $  37.7     $ 216.5   
FIS common stockholders
                                                                             
Amounts attributable to FIS common
stockholders
Earnings (loss) from continuing         $ 179.7       $  37.7      $ 217.4
operations, net of tax
Earnings (loss) from discontinued       (0.9      )   —           (0.9      )
operations, net of tax (6)
Net earnings (loss) attributable to     $ 178.8      $  37.7     $ 216.5   
FIS common stockholders
                                                                             
Net earnings (loss) per share —
diluted from continuing operations      $ 0.62       $  0.13     $ 0.75    
attributable to FIS common
stockholders*
Weighted average shares outstanding —   289.2        289.2       289.2     
diluted
                                                                             
Effective tax rate                      30        %                30        %
                                                                             
Supplemental information:
Depreciation and amortization           $ 156.5      (54.0    )   $ 102.5   
                                                                             
Stock compensation expense                                         $ 13.3    


* Amounts may not sum due to rounding.

See accompanying notes.

                                                      Exhibit E (continued)
                                                                   
                 Six months ended June 30, 2014
                                                          Purchase
                               Contract                   Price
                 GAAP          Settlement   Subtotal      Amort.     Non-GAAP
                               (1)                        (5)
Processing and
services         $ 3,119.4     $  9.0       $ 3,128.4     $ —        $ 3,128.4
revenue
Cost of          2,140.4      —           2,140.4      (108.9 )   2,031.5   
revenues
Gross profit     979.0         9.0          988.0         108.9      1,096.9
Selling,
general and      383.2        —           383.2        —         383.2     
administrative
Operating        595.8        9.0         604.8        108.9     713.7     
income
Other income
(expense):
Interest
income           (83.0     )   —            (83.0     )   —          (83.0     )
(expense), net
Other income     (1.7      )   —           (1.7      )   —         (1.7      )
(expense), net
Total other
income           (84.7     )   —           (84.7     )   —         (84.7     )
(expense)
Earnings
(loss) from
continuing       511.1         9.0          520.1         108.9      629.0
operations
before income
taxes
Provision for    161.6        3.0         164.6        34.7      199.3     
income taxes
Earnings
(loss) from
continuing       349.5         6.0          355.5         74.2       429.7
operations,
net of tax
Earnings
(loss) from
discontinued     (3.1      )   —           (3.1      )   —         (3.1      )
operations,
net of tax (6)
Net earnings     346.4         6.0          352.4         74.2       426.6
(loss)
Net (earnings)
loss
attributable     (13.1     )   —           (13.1     )   —         (13.1     )
to
noncontrolling
interest
Net earnings
(loss)
attributable     $ 333.3      $  6.0      $ 339.3      $ 74.2    $ 413.5   
to FIS common
stockholders
                                                                               
Amounts
attributable
to FIS common
stockholders
Earnings
(loss) from
continuing       $ 336.4       $  6.0       $ 342.4       $ 74.2     $ 416.6
operations,
net of tax
Earnings
(loss) from
discontinued     (3.1      )   —           (3.1      )   —         (3.1      )
operations,
net of tax (6)
Net earnings
(loss)
attributable     $ 333.3      $  6.0      $ 339.3      $ 74.2    $ 413.5   
to FIS common
stockholders
                                                                               
Net earnings
(loss) per
share —
diluted from
continuing       $ 1.16       $  0.02     $ 1.18       $ 0.26    $ 1.43    
operations
attributable
to FIS common
stockholders*
Weighted
average shares   290.5        290.5       290.5        290.5     290.5     
outstanding —
diluted
                                                                               
Effective tax    32        %                                         32        %
rate
                                                                               
Supplemental
information:
Depreciation
and                                         $ 309.1      (108.9 )   $ 200.2   
amortization
                                                                               
Stock
compensation                                                         $ 26.6    
expense


* Amounts may not sum due to rounding.

See accompanying notes.

FIDELITY NATIONAL INFORMATION SERVICES, INC.
SUPPLEMENTAL GAAP TO NON-GAAP RECONCILIATION — UNAUDITED
(In millions)

                                                                  Exhibit E (continued)
                                                                                
                 Three months ended June 30, 2013
                                                                                            
                               Long-term   Capco                       Purchase
                               Debt        Acquisition                 Price
                 GAAP          Refinance  Adjustments   Subtotal      Amort.     Non-GAAP
                               (2)         (3)                         (5)
Processing and
services         $ 1,512.8     $  —        $  —          $ 1,512.8     $ —        $ 1,512.8
revenue
Cost of          1,031.5      —         (6.3     )    1,025.2      (57.3  )   967.9     
revenues
Gross profit     481.3         —           6.3           487.6         57.3       544.9
Selling,
general and      232.6        —         (43.9    )    188.7        —         188.7     
administrative
Operating        248.7        —         50.2         298.9        57.3      356.2     
income
Other income
(expense):
Interest
income           (49.4     )   —           —             (49.4     )   —          (49.4     )
(expense), net
Other income     (61.9     )   60.9      —            (1.0      )   —         (1.0      )
(expense), net
Total other
income           (111.3    )   60.9      —            (50.4     )   —         (50.4     )
(expense)
Earnings
(loss) from
continuing       137.4         60.9        50.2          248.5         57.3       305.8
operations
before income
taxes
Provision for    41.2         18.3      15.1         74.6         17.2      91.8      
income taxes
Earnings
(loss) from
continuing       96.2          42.6        35.1          173.9         40.1       214.0
operations,
net of tax
Earnings
(loss) from
discontinued     12.8         —         —            12.8         —         12.8      
operations,
net of tax (6)
Net earnings     109.0         42.6        35.1          186.7         40.1       226.8
(loss)
Net (earnings)
loss
attributable     (4.2      )   —         —            (4.2      )   —         (4.2      )
to
noncontrolling
interest
Net earnings
(loss)
attributable     $ 104.8      $  42.6   $  35.1      $ 182.5      $ 40.1    $ 222.6   
to FIS common
stockholders
                                                                                            
Amounts
attributable
to FIS common
stockholders
Earnings
(loss) from
continuing       $ 92.0        $  42.6     $  35.1       $ 169.7       $ 40.1     $ 209.8
operations,
net of tax
Earnings
(loss) from
discontinued     12.8         —         —            12.8         —         12.8      
operations,
net of tax (6)
Net earnings
(loss)
attributable     $ 104.8      $  42.6   $  35.1      $ 182.5      $ 40.1    $ 222.6   
to FIS common
stockholders
                                                                                            
Net earnings
(loss) per
share —
diluted from
continuing       $ 0.31       $  0.14   $  0.12      $ 0.58       $ 0.14    $ 0.71    
operations
attributable
to FIS common
stockholders*
Weighted
average shares   294.3        294.3     294.3        294.3        294.3     294.3     
outstanding —
diluted
                                                                                            
Effective tax    30        %                                                      30        %
rate
                                                                                            
Supplemental
information:
Depreciation
and                                                      $ 152.3      (57.3  )   $ 95.0    
amortization
                                                                                            
Stock
compensation                                                                      $ 13.2    
expense


* Amounts may not sum due to rounding.

See accompanying notes.

FIDELITY NATIONAL INFORMATION SERVICES, INC.
SUPPLEMENTAL GAAP TO NON-GAAP RECONCILIATION — UNAUDITED
(In millions)
Exhibit E (continued)
                                                                                      
                 Six months ended June 30, 2013
                                                                                                        
                               Long-term   Capco                                   Purchase
                               Debt        Acquisition   Gain on                   Price
                 GAAP          Refinance  Adjustments   mFoundry    Subtotal      Amort.     Non-GAAP
                               (2)         (3)           (4)                       (5)
Processing and
services         $ 2,990.1     $  —        $  —          $ —         $ 2,990.1     $ —        $ 2,990.1
revenue
Cost of          2,040.9      —          (6.3     )    —          2,034.6      (117.6 )   1,917.0   
revenues
Gross profit     949.2         —           6.3           —           955.5         117.6      1,073.1
Selling,
general and      424.7        —          (43.9    )    —          380.8        —         380.8     
administrative
Operating        524.5        —          50.2         —          574.7        117.6     692.3     
income
Other income
(expense):
Interest
income           (101.1    )   —           —             —           (101.1    )   —          (101.1    )
(expense), net
Other income     (56.8     )   60.9       —            (9.2    )   (5.1      )   —         (5.1      )
(expense), net
Total other
income           (157.9    )   60.9       —            (9.2    )   (106.2    )   —         (106.2    )
(expense)
Earnings
(loss) from
continuing       366.6         60.9        50.2          (9.2    )   468.5         117.6      586.1
operations
before income
taxes
Provision for    116.6        18.3       15.1         (3.0    )   147.0        37.0      184.0     
income taxes
Earnings
(loss) from
continuing       250.0         42.6        35.1          (6.2    )   321.5         80.6       402.1
operations,
net of tax
Earnings
(loss) from
discontinued     8.4          —          —            —          8.4          —         8.4       
operations,
net of tax (6)
Net earnings     258.4         42.6        35.1          (6.2    )   329.9         80.6       410.5
(loss)
Net (earnings)
loss
attributable     (9.5      )   —          —            —          (9.5      )   —         (9.5      )
to
noncontrolling
interest
Net earnings
(loss)
attributable     $ 248.9      $  42.6    $  35.1      $ (6.2  )   $ 320.4      $ 80.6    $ 401.0   
to FIS common
stockholders
                                                                                                        
Amounts
attributable
to FIS common
stockholders
Earnings
(loss) from
continuing       $ 240.5       $  42.6     $  35.1       $ (6.2  )   $ 312.0       $ 80.6     $ 392.6
operations,
net of tax
Earnings
(loss) from
discontinued     8.4          —          —            —          8.4          —         8.4       
operations,
net of tax (6)
Net earnings
(loss)
attributable     $ 248.9      $  42.6    $  35.1      $ (6.2  )   $ 320.4      $ 80.6    $ 401.0   
to FIS common
stockholders
                                                                                                        
Net earnings
(loss) per
share —
diluted from
continuing       $ 0.82       $  0.14    $  0.12      $ (0.02 )   $ 1.06       $ 0.27    $ 1.33    
operations
attributable
to FIS common
stockholders*
Weighted
average shares   294.8        294.8      294.8        294.8      294.8        294.8     294.8     
outstanding —
diluted
                                                                                                        
Effective tax    32        %                                                                  31        %
rate
                                                                                                        
Supplemental
information:
Depreciation
and                                                                  $ 305.5      (117.6 )   $ 187.9   
amortization
                                                                                                        
Stock
compensation                                                                                  $ 26.4    
expense

* Amounts may not sum due to rounding.

See accompanying notes.

FIDELITY NATIONAL INFORMATION SERVICES, INC.
SUPPLEMENTAL GAAP TO NON-GAAP RECONCILIATION — UNAUDITED
(In millions)


Notes to Unaudited - Supplemental GAAP to Non-GAAP Reconciliation for the
three and six months ended June30, 2014 and 2013.

The adjustments are as follows:

(1) The revenue adjustment in this column represents a cash settlement for the
extinguishment of certain contractual minimums with a reseller. Although the
2014 cash settlement has no contract performance obligation, revenue is
amortized in this circumstance over the remaining relationship with the
reseller.

(2) This column represents the write-off of certain previously capitalized
debt issuance costs and transaction expenses related to refinancing activities
undertaken in the second quarter of 2013, including a $51.6 million bond
premium incurred as a result of the early redemption of certain debt.

(3) The adjustment in this column represents an increase in the liability
established at the acquisition of Capco for contingent payments based on
expected operating performance in 2013 through 2015.

(4) Gain resulting from the purchase of the remaining shares of mFoundry,
Inc., representing the difference between the fair value and carrying value of
the minority interest investment previously held.

(5) This column represents purchase price amortization expense on intangible
assets acquired through various Company acquisitions.

(6) During the 2014 and 2013 periods, certain operations were classified as
discontinued. Reporting for discontinued operations classifies revenues and
expenses as one line item net of tax in the consolidated statements of
earnings. The table below outlines the components of discontinued operations
for the periods presented, net of tax. During the second quarter of 2014,
management committed to a plan to sell our primary business operations in
China because they don't align with our strategic plans. The activity for
Fidelity National Participacoes Ltda. ("Participacoes"), our former item
processing and remittance services business in Brazil, relates to the ongoing
settlement of labor claims as a result of the dismissal of employees in that
business. In the second quarter of 2013, we received an earn-out payment
related to the 2010 sale of our ClearPar business.

                                Three Months Ended    Six Months Ended
                                                   
                                June 30,              June 30,
                                2014     2013      2014     2013   
                                                                        
China business line             $ (0.4 )   $ (0.8 )   $ (2.2 )   $ (1.3 )
ClearPar                        —          16.7       —          16.7
Participacoes                   (0.5   )   (3.1   )   (0.9   )   (7.0   )
Total discontinued operations   $ (0.9 )   $ 12.8    $ (3.1 )   $ 8.4  

Contact:

Ellyn Raftery, 904.438.6083
Chief Marketing Officer
FIS Global Marketing and Communications
ellyn.raftery@fisglobal.com
or
Nancy Murphy, 904.438.6192
Senior Vice President
FIS Investor Relations
nancy.murphy@fisglobal.com
 
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