Fidelity National Information Services (FIS) KBW Fintech & Payments Conference 2024 summary

Business transformation and operational progress

• Focus on client centricity led to improved customer experience and higher NPS scores, with revenue growth rising from 3% to above 4% and further acceleration targeted over the next two years.

• Banking segment growth accelerated by over 100 basis points in the second half, with cost reductions of $280 million and margin improvement of 50 basis points this year.

• Capital allocation shifted to a $4 billion buyback, exceeding initial post-divestiture guidance, and a balanced approach between M&A and shareholder returns.

• Worldpay divestiture required significant restructuring, with ongoing cost elimination and a multi-year transition process.

• Enhanced transparency and communication with investors reduced uncertainty and improved market confidence.

Sales strategy and growth initiatives

• Combined sales force implemented to capture cross-sell opportunities between banking and capital markets, targeting $400 million in synergies.

• Increased sales specialization, especially in payments and capital markets, with new leadership and compensation plans to drive recurring, profitable revenue.

• Office of the CFO created to target capital markets CFOs with a suite of risk, treasury, and finance products.

Financial performance and outlook

• Normalized banking revenue growth, after adjusting for Worldpay and pandemic effects, is about 4%, with no material carryover issues expected in 2025.

• Capital markets growth expected at the high end of 6.5%-7% this year, accelerating to 7.5%-8.5% next year, driven by both organic growth and targeted M&A.

• CapEx will remain elevated for 12-18 months due to supplier price increases and accelerated investments in digital and payments, then expected to fall below 8%.

• Free cash flow conversion expected to improve long-term, with additional levers to optimize working capital and a likely increase in capital returns to shareholders.