EX-99.2 3 d385317dex992.htm INVESTOR PRESENTATION MATERIALS Investor presentation materials
July 26, 2012
June 30, 2012 Quarterly Results Presentation
ACI’s software underpins electronic
payments throughout retail and
wholesale banking, and commerce
all the time.
Exhibit 99.2

2
This presentation contains forward-looking statements based on current
expectations that involve a number of risks and uncertainties.  The forward-
looking statements are made pursuant to safe harbor provisions of the Private
Securities Litigation Reform Act of 1995. A discussion of these forward-
looking statements and risk factors that may affect them
is set forth at the end
of this presentation. The Company assumes no obligation to update any
forward-looking statement in this presentation, except as required by law.
Private Securities Litigation Reform Act of 1995
Safe Harbor For Forward-Looking Statements

Quarterly Overview
Phil Heasley
Chief Executive Officer
3

4
Q2 2012 in Review
•
Corporate consolidation of S1 and ACI now complete
–
Annualized savings of $53 million between the SG&A and facilities/IT rationalization
–
focus now on execution of facilities and IT rationalization 
•
Rolled out product and solutions road maps to market and customers at key
industry events
•
Repurchased approximately $38 million of shares in the quarter
•
Business
goal
remains
growth
in
sales
net
of
term
extensions
and
building
long-term backlog

Business Overview
Ralph Dangelmaier
President, Global Markets
5

Q2 2012 Overview
Americas
•
New Consumer On-line banking solution
with leading regional bank holding
company with 100+ branches 
•
Term extension/add-on sale to leading
Canadian Financial Institution 
•
New PRM solution and term extension with
Regional U.S. Financial Institution 
•
Base24-eps migration with leading
Brazilian processor 
•
Leading specialty retailer in Northeast
committed to ACI’s Retail Commerce
Server 
Asia Pacific
•
Major re-commitment and new BASE24-
eps migration by leading card processor in
Taiwan 
•
Professional Services and add-on sales
with one of Asia’s leading financial services
groups 
•
Capacity upgrade with leading Japanese
processor 
EMEA
•
Significant add-on and term extension with
Major Global Financial Services Provider 
•
Wholesale term extension with world
premier Financial Institution
headquartered in UK 
•
Significant add-on and term extension with
Leading Corporate Banking Services
Provider in South Central Europe 
6

7
Key Market Drivers
•
Global trends -
regulations, growth, cost reduction and innovation
•
Innovation
•
EMV
–
Americas
•
EMV will be a catalyst for change around system upgrades and  BASE24-
eps, Back Office, Token Mgr, and ACI Interchange/Acquirer opportunities
•
Mobile
Initiative
–
Global
•
Early growth stage for mobile becoming a channel for Banking and
Payments
•
ACI Mobile campaign kicked off with strong activities around customer
engagements including webinar series and mobile white papers
•
Second half CY 2012 Outlook
•
Americas
-
Continued
focus
on
large
add-on
sales
and
cross–sell
activities
•
EMEA
-
Large
major
transformation
projects
•
APAC
-
Pipeline
very
strong

Financial Review
Scott Behrens
Chief Financial Officer
8

Key  Takeaways  from the Quarter
Q2 Sales
•
Strong sales in EMEA, up 49%, led by large UK bank renewal
•
S1 Acquisition contributed approximately $39 million of sales
•
Sales, net of term extensions, increased $38.4 million and 52% over Q2-2011
Backlog Impacted by FX Movements
•
FX movements reduced 60-month backlog by $23.5 million
•
FX movements reduced 12-month backlog by $6.2 million 
Solid Revenue Quarter
•
S1 contributed $43.1 million in revenue for the second quarter
•
Q2 revenue impacted by $9.6 million of deferred revenue haircut
•
Monthly recurring revenue comprised 70% of the quarter’s revenue
•
Organic revenue decline of $6.7 million on timing of capacity and initial license fees
•
FX movement reduced revenues by $3 million compared to prior-year quarter
•
Approximately $10 million of non-recurring revenue from backlog moved into 2H-12
9

10
Key Takeaways from the Quarter (cont)
Operating Expense
•
S1 contributed $45.0 million in expenses for the period 
•
Organic expenses up $2.1 million primarily from higher deferred costs recognized from project
go-lives.
•
$7.6 million of IT-related infrastructure exit costs and severance expense
Non-GAAP Operating Income & Adjusted EBITDA
•
Non-GAAP Operating Income of $9.4 million
•
Non-GAAP Adjusted EBITDA of $25.7 million
•
Non-GAAP amounts exclude S1 acquisition related one-time expenses and impact of deferred
revenue haircut
Debt & Liquidity
Ended Q2 with $149.6 million in cash
Repurchased 962K shares of stock for approximately $38 million during Q2
YTD repurchased 1.1 million shares of stock for approximately $44 million
Acquired Latin American distributor for $4.5 million
Reduced Term Loan debt by approximately $3.1 million in Q2
As of June 2012, debt outstanding of $363.8 million ($170 million in revolver and $193.8
million in term loan)

S1 Integration Update
Corporate Consolidation now complete
Additional cost savings expected to be achieved from facilities and data center
consolidation
Summary of additional actions as follows:
•
Close and consolidate 14 redundant offices worldwide
•
Consolidate Data Centers
•
75% of actions complete by end of 2012 with remainder complete by end of 2013
Summary of additional one-time costs and savings as follows:
•
2012:
$15
million
of
one-time
expenses
related
to
IT
and
facilities
exit
costs;
of
which $7.6 million incurred in Q2 
•
2013: $15 million of annualized savings
•
2014 and thereafter: $20 million of annualized savings
11
When fully implemented, overall cost synergies from acquisition
expected to be $53 million

Reaffirmation of 2012 Margin Guidance
12
Chart
represents
walk
from
Q1
2012
earnings
(May
3
rd
)
to
current 
•
Operating efficiencies offset margin impact of FX movements and
incremental deferred revenue haircut from purchase accounting
•
No impact to prior guidance for Operating Income and Adjusted EBITDA
•
One time transaction expenses of $31 million inclusive of facilities and IT
exit costs synergies quantified in Q2-12
•
2013 annualized cost synergy benefits of $48 million
•
2014 annualized cost synergy benefits of $53 million 
$ Millions
Prior
Guidance
Range
Incremental
Purchase Acct
Adj Q2-12
FX Impact
Current Guidance
before One-Time
Trans Exp
Total One-
Time Trans
Exp 
Revenue
$696- $706
(3)
(10)
$683-$693
Adjusted EBITDA
$165- $170
-
-
$165- $170
(31)
Operating Income
$99- $104
-
-
$99- $104
(31)

Appendix
13

14
Historic Sales By Quarter 2010-2012
New Accounts / New
Applications
3/31/2010
$81,142
$5,758
$35,066
$40,318
7%
43%
50%
6/30/2010
$107,985
$1,224
$68,474
$38,287
1%
63%
35%
9/30/2010
$161,269
$11,290
$89,364
$60,615
7%
55%
38%
12/30/2010
$174,827
$43,988
$59,622
$71,217
25%
34%
41%
3/31/2011
$122,904
$13,695
$50,305
$58,904
11%
41%
48%
6/30/2011
$146,956
$19,730
$54,174
$73,052
13%
37%
50%
9/30/2011
$115,089
$17,356
$57,611
$40,123
15%
50%
35%
12/31/2011
$171,385
$12,906
$104,460
$54,019
8%
61%
32%
3/31/2012
$108,462
$5,958
$58,602
$43,902
5%
54%
40%
6/31/2012
$156,188
$9,855
$102,417
$43,916
6%
66%
28%
New Accounts / New
Applications
JUN YTD 12
$264,650
$15,813
$161,019
$87,818
JUN YTD 11
$269,860
$33,425
$104,479
$131,956
Variance
($5,210)
($17,612)
$56,541
($44,138)
Quarter-End
Sales
Term Extension
Add-on Business
inc. Capacity
Upgrades &
Term Extension
Add-on Business
inc. Capacity
Upgrades &
Total Economic Value of
Sales
Sales Mix by Category

Sales By Region by Geography and Type
Channel
Qtr Ended
Jun 12
Qtr Ended
Jun 11
% Growth or
Decline
Americas
$68,908
$83,897
-17.9%
EMEA
70,071
47,062
48.9%
Asia-Pacific
17,209
15,997
7.6%
Total Sales
$156,188
$146,956
6.3%
Total Sales
Sales Type
Qtr Ended
Jun 12
Qtr Ended
Jun 11
% Growth or
Decline
New Account / New Application
$9,855
$19,730
-50.1%
Add-on Business
102,417
54,174
89.1%
Term Extension
43,916
73,052
-39.9%
Total Sales
$156,188
$146,956
6.3%
Sales Type

Backlog as a Contributor of Quarterly Revenue
•
Backlog from monthly recurring revenues and project go-lives
continues to drive current quarter GAAP revenue
•
Revenue from current quarter sales consistent with prior quarters
16
Revenue
Qtr Ended
Jun 12
Qtr Ended
Jun 11
% Growth or
Decline
Revenue from Backlog
$142,854
$103,219
38.4%
Revenue from Sales
6,943
             
10,147
           
-31.6%
Total Revenue
$149,797
$113,366
32.1%
Revenue from Backlog
95%
91%
Revenue from Sales
5%
9%
Revenue

Operating Free Cash Flow ($ millions)
17
Quarter Ended June 30,
2012
2011
Net cash provided (used) by operating
activities
$(5.5 )
$7.5
Adjustments:
Net after-tax payments associated with
employee-related actions*
3.9 
-
Net after-tax payments associated with S1
related transaction costs*
1.1
-
Net after-tax payments associated with IBM IT
Outsourcing Transition*
0.2 
0.2
Less capital expenditures
(3.5 )
(6.1) 
Operating Free Cash Flow
$(3.8)
$1.6
* Tax effected at 35%

60-Month Backlog ($ millions)
18
Quarter Ended
June 30,
March 31,
June 30,
2012
2012
2011
Americas
$1,414
$1,405
$902
EMEA
653
669
534
Asia/Pacific
239
243
193
Backlog 60-Month
$2,306
$2,317
$1,629
Deferred Revenue
$204
$207
$162
Other
2,102
2,110
1,467
Backlog 60-Month
$2,306
$2,317
$1,629

Revenues by Channel ($ millions)
19
Quarter Ended June 30,
2012
2011
Revenues:
United States
$65.3  
$ 44.9
Americas International
16.4  
13.1
Americas
$81.7
$58.0
EMEA
49.6
41.9
Asia/Pacific
18.5
13.5
Revenues
$149.8
$113.4

Monthly Recurring Revenue ($ millions)
20
Quarter Ended June 30,
2012
2011
Monthly Software License Fees
$24.5
$31.4
Maintenance Fees
49.4
35.6
Hosting Services
31.4
14.1
Monthly Recurring Revenue
$105.3
$81.1

Deferred Revenue and Expense ($ millions)
21
Quarter Ended
June 30,
March 31,
June 30,
March 31,
2012
2012
2011
2011
Short Term Deferred
Revenue
$165.1
$177.8
$131.7
$141.4
Long Term Deferred
Revenue
38.7
29.5
30.0
33.2
Total Deferred Revenue
$203.8
$207.3
$161.7
$174.6
Total Deferred Expense
$9.9
$13.3
$12.6
$12.0

Non-Cash Compensation, Acquisition Intangibles and
Software, and Acquisition-Related Expenses
22
Quarter ended
June 30, 2012
Quarter ended
June 30, 2011
EPS Impact*
$ in Millions
EPS Impact*
$ in Millions
Amortization of acquisition-
related intangibles
0.05
2.1
0.03
1.1
Amortization of acquisition-
related software
0.05
2.1
0.03
1.0
Non-cash equity-based
compensation
0.06
2.3
0.04
1.4
Total:
$0.16
$6.5
$0.10
$3.5
* Tax Effected at 35% 

Other Income / Expense ($ millions)
23
Quarter Ended
June 30, 2012
March 31, 2012
June 30, 2011
March 31,
2011
Interest Income
$0.2
$0.2
$0.2
$0.2
Interest Expense
($2.9)
($1.9)
($0.4)
($0.6)
FX Gain / Loss
($0.3)
($0.6)
$0.3
($0.2)
Other
$0.0
$1.5
$0.0
($0.1)
Total Other Income
(Expense)
($3.0)
($0.8)
$0.1
($0.7)

Adjusted EBITDA
Quarter Ended
June 30, 2012
Quarter Ended
June 30, 2011
Net Income (Loss)
$(4.7)
$9.8
Income
tax
expense
(benefit)
(6.2)
0.7
Net Interest Expense
2.7
0.2
Net Other Expense
0.3
(0.3)
Depreciation Expense
3.5
1.8
Amortization Expense
9.7
5.5
Non-Cash Compensation Expense
3.5
2.2
Adjusted EBITDA
$8.8
$19.9
Deferred revenue
9.6
-
Employee-related actions
3.3
-
IT exit costs
3.1
-
Other one-time S1 related expenses
0.9
-
Adjusted EBITDA ex one-time expenses
$25.7
19.9
24

Non -GAAP Operating Income (loss)
25
Quarter Ended June
30, 2012
Quarter Ended
June 30, 2011
Operating Income (Loss)
$(7.9 )
$10.4
Plus
Deferred Revenue
9.6
-
Employee-related actions
3.6
-
IT exit costs
3.1
-
Other one-time S1 related expenses
0.9
-
Non-GAAP Operating Income (loss)
$9.3
$10.4

Non-GAAP Financial Measures
To supplement our financial results presented on a GAAP basis, we use the non-GAAP measure indicated
in the tables, which exclude certain business combination accounting entries and expenses related
to the acquisition of S1, as well as other significant non-cash expenses such as depreciation,
amortization
and
share-based
compensation,
that
we
believe
are
helpful
in
understanding
our
past
financial performance and our future results.  The presentation of these non-GAAP financial
measures should be considered in addition to our GAAP results and are not intended to be
considered in isolation or as a substitute for the financial information prepared and presented in
accordance with GAAP. Management generally compensates for limitations in the use of non-GAAP
financial measures by relying on comparable GAAP financial measures and providing investors with
a reconciliation of non-GAAP financial measures only in addition to and in conjunction with results
presented in accordance with GAAP. We believe that these non-GAAP financial measures reflect an
additional way of viewing aspects of our operations that, when viewed with our GAAP results,
provide a more complete understanding of factors and trends affecting our business.   
•
Non-GAAP operating income which is defined as operating income (loss) plus deferred revenue that
would have been recognized in the normal course of business by S1 if not for GAAP purchase
accounting requirements and one-time expense related to the acquisition of S1.  Non-GAAP
operating income should be considered in addition to, rather than as a substitute for, operating
income.
26

Non-GAAP Financial Measures
•
Adjusted EBITDA, which is defined as net income (loss) plus income tax expense, net interest
income (expense), net other income (expense), depreciation, amortization and non-cash
compensation, as well as deferred revenue that would have been recognized in the normal course of
business by S1 if not for GAAP purchase accounting requirements and one-time expense related to
the acquisition of S1.  Adjusted EBITDA should be considered in addition to, rather than as a
substitute for, operating income.
•
ACI is also presenting operating free cash flow, which is defined as net cash provided (used) by
operating activities, less net after-tax payments associated with cash settlement of S1 stock options
and S1 related transaction costs, net after-tax payments associated with IBM IT outsourcing
transition, capital expenditures and plus or minus net proceeds from IBM.  Operating free cash flow
is considered a non-GAAP financial measure as defined by SEC Regulation G.  We utilize this non-
GAAP financial measure, and believe it is useful to investors, as an indicator of cash flow available
for debt repayment and other investing activities, such as capital investments and acquisitions. We
utilize operating free cash flow as a further indicator of operating performance and for planning
investing activities.  Operating free cash flow should be considered in addition to, rather than as a
substitute for, net cash provided by operating activities.  A limitation of operating free cash flow is
that
it
does
not
represent
the
total
increase
or
decrease
in
the
cash
balance
for
the
period.
This
measure
also
does
not
exclude
mandatory
debt
service
obligations
and,
therefore,
does
not
represent the residual cash flow available for discretionary expenditures. We believe that operating
free cash flow is useful to investors to provide disclosures of our operating results on the same basis
as that used by our management
27

Non-GAAP Financial Measures
•
ACI also includes backlog estimates which are all software license fees, maintenance fees and services specified in
executed contracts, as well as revenues from assumed contract renewals to the extent that we believe recognition of the
related revenue will occur within the corresponding backlog period.  We have historically included assumed renewals in
backlog
estimates
based
upon
automatic
renewal
provisions
in
the
executed
contract
and
our
historic
experience
with
customer renewal rates. 
•
Backlog is considered a non-GAAP financial measure as defined by SEC Regulation G. Our 60-month backlog estimate
represents expected revenues from existing customers using the following key assumptions:
•
Maintenance fees are assumed to exist for the duration of the license term for those contracts in which the committed
maintenance term is less than the committed license term.
•
License and facilities management arrangements are assumed to renew at the end of their committed term at a rate
consistent with our historical experiences.
•
Non-recurring
license
arrangements
are
assumed
to
renew
as
recurring
revenue
streams.
•
Foreign currency exchange rates are assumed to remain constant over the 60-month backlog period for those contracts
stated in currencies other than the U.S. dollar.
•
Our pricing policies and practices are assumed to remain constant over the 60-month backlog period.
•
Estimates
of
future
financial
results
are
inherently
unreliable.
Our
backlog
estimates
require
substantial
judgment
and
are
based on a number of assumptions as described above. These assumptions may turn out to be inaccurate or wrong,
including
for
reasons
outside
of
management’s
control.
For
example,
our
customers
may
attempt
to
renegotiate
or
terminate their contracts for a number of reasons, including mergers, changes in their financial condition, or general
changes in economic conditions in the customer’s industry or geographic location, or we may experience delays in the
development or delivery of products or services specified in customer contracts which may cause the actual renewal rates
and amounts to differ from historical experiences.  Changes in foreign currency exchange rates may also impact the
amount of revenue actually recognized in future periods.  Accordingly, there can be no assurance that contracts included
in backlog estimates will actually generate the specified revenues or that the actual revenues will be generated within the
corresponding 60-month period.
•
Backlog should be considered in addition to, rather than as a substitute for, reported revenue and deferred revenue.
28

Forward-Looking Statements
This presentation contains forward-looking statements based on current expectations that
involve a number of risks and uncertainties. Generally, forward-looking statements do not
relate strictly to historical or current facts and may include words or phrases such as
“believes,”
“
will,”
“expects,”
“anticipates,”
“intends,”
and words and phrases of similar
impact.  The forward-looking statements are made pursuant to safe harbor provisions of
the Private Securities Litigation Reform Act of 1995.
Forward-looking statements in this presentation include, but are not limited to,
statements regarding:
•
Annual cost savings expected from the S1 acquisition;
•
Business goal of growth in sales net of term extensions and building long-term backlog;
•
The company’s 12-month and 60-month backlog estimates and assumptions
•Expectations regarding key market drivers, including EMV as a catalyst for change, and
second half CY 2012 outlook; and
•
Expectations regarding 2012 financial guidance related to revenue, operating income
and operating EBITDA, and overall cost synergies.
29

Forward-Looking Statements
•
All of the foregoing forward-looking statements are expressly qualified by the risk factors discussed in our
filings with the Securities and Exchange Commission. Such factors include but are not limited to, risks
related to the global financial crisis and the continuing decline in the global economy, restrictions and other
financial covenants in our credit facility, volatility and disruption of the capital and credit markets and
adverse changes in the global economy, risks related to the expected benefits to be achieved in the
transaction with S1, consolidations and failures in the financial services industry, the accuracy of
management’s backlog estimates, the cyclical nature of our revenue and earnings and the accuracy of
forecasts due to the concentration of revenue generating activity during the final weeks of each quarter,
impairment of our goodwill or intangible assets, exposure to unknown tax liabilities, volatility in our stock
price, risks from operating internationally, including fluctuations in currency exchange rates, increased
competition, our offshore software development activities, customer reluctance to switch to a new vendor,
the performance of our strategic product, BASE24-eps, the maturity of certain products, our strategy to
migrate customers to our next generation products, ratable or deferred recognition of certain revenue
associated with customer migrations and the maturity of certain of our products, demand for our products,
failure to obtain renewals of customer contracts or to obtain such renewals on favorable terms, delay or
cancellation of customer projects or inaccurate project completion estimates, business interruptions or
failure
of
our
information
technology
and
communication
systems,
our
alliance
with
International
Business
Machines Corporation (“IBM”), our outsourcing agreement with IBM, the complexity of our products and
services
and
the
risk
that
they
may
contain
hidden
defects
or
be
subjected
to
security
breaches
or
viruses,
compliance of our products with applicable legislation, governmental regulations and industry standards,
our compliance with privacy regulations, the protection of our intellectual property in intellectual property
litigation, future acquisitions, strategic partnerships and investments and litigation, the risk that expected
synergies,
operational
efficiencies
and
cost
savings
from
the
S1
acquisition
may
not
be
fully
realized
or
realized within the expected time frame.  For a detailed discussion of these risk factors, parties that are
relying
on
the
forward-looking
statements
should
review
our
filings
with
the
Securities
and
Exchange
Commission, including our most recently filed Annual Report on Form 10-K, Registration Statement on Form
S-4, and subsequent reports on Forms 10-Q and 8-K.
30

ACI’s software underpins electronic
payments throughout retail and
wholesale banking, and commerce all
the time, without fail.
www.aciworldwide.com