FIS Reports First Quarter 2019 Results

FIS™
(NYSE:FIS), a global leader in financial services technology, today
reported first quarter 2019 results. The comparability of the Company’s
first quarter results is impacted by the dissolution of the Brazilian JV
and divestitures in 2018.

On a GAAP basis, revenue decreased 0.5 percent to $2,057 million from
$2,066 million in the prior year quarter. Operating income increased to
$315 million from $294 million in the prior year quarter, while
operating income margin expanded 110 basis points to 15.3 percent. Net
earnings attributable to common stockholders was $148 million for the
quarter, or $0.45 per diluted share, compared to $0.54 per diluted share
in the prior year quarter, a decrease of 16.7 percent.

On an adjusted basis, organic revenue increased 5.1 percent. Adjusted
EBITDA increased to $729 million from $705 million in the prior year
quarter, while adjusted EBITDA margin expanded 130 basis points to 35.4
percent. Adjusted net earnings attributable to common stockholders was
$535 million, or $1.64 per diluted share, compared to $1.50 per diluted
share in the prior year quarter, an increase of 9.3 percent.

“We are pleased to announce a very strong start to the year driven by
robust, ongoing demand for our solutions,” said Gary Norcross, FIS
chairman, president and chief executive officer. “Our top-line growth is
continuing to accelerate as we deliver long-term value to our clients
and shareholders. We are very excited about the pending combination with
Worldpay and are focused on closing the transaction in the third quarter
of 2019.”

Segment Information

• Integrated Financial Solutions (IFS):
  On a GAAP basis, revenue
  increased 6.4 percent to $1,129 million from $1,061 million in the
  prior year quarter. Organic revenue increased 7.3 percent. Adjusted
  EBITDA increased to $499 million from $451 million in the prior year
  quarter, and adjusted EBITDA margin was 44.1 percent, representing
  expansion of 160 basis points.

• Global Financial Solutions (GFS):
  On a GAAP basis, revenue
  decreased 6.9 percent to $863 million from $927 million in the prior
  year quarter. Organic revenue increased 2.4 percent. Adjusted EBITDA
  increased to $309 million from $305 million in the prior year quarter,
  and adjusted EBITDA margin was 35.8 percent, representing expansion of
  290 basis points.

• Corporate / Other:
  On a GAAP basis, revenue decreased 17.3
  percent to $65 million compared to $78 million in the prior year
  quarter. Organic revenue increased 4.1 percent. Adjusted EBITDA loss
  was $79 million and is inclusive of $92 million of corporate expenses.

Balance Sheet and Cash Flows

As of March 31, 2019, cash and cash equivalents totaled $576 million and
debt outstanding totaled $9,215 million with an effective weighted
average interest rate of 3.3 percent. Net cash provided by operating
activities was $294 million and free cash flow was $249 million for the
quarter.

The Company repurchased 3.9 million common shares in January 2019 at a
total cost of approximately $400 million. Approximately $2,280 million
remained under the existing share repurchase authorization as of March
31, 2019. The Company paid dividends of $113 million in the quarter.

Full-Year 2019 Guidance Revised

The decrease in guidance for diluted EPS and net earnings margin
expansion is primarily driven by non-recurring expenses associated with
the announced Worldpay transaction which were not included in the
previous GAAP guidance. Earnings guidance is solely for FIS and does not
include any future Worldpay revenue or expenses, except certain
transaction specific costs incurred by FIS.

2019 GAAP Guidance

• Consolidated GAAP revenue increase of 0.0 to 0.5 percent
• Net earnings margin expansion of 210 to 350 bps
• Diluted EPS of $3.15 to $3.55

2019 Non-GAAP Guidance

• Consolidated organic revenue increase of 4.0 to 4.5 percent
• Adjusted EBITDA margin expansion of 150 to 200 bps
• Adjusted EPS of $7.35 to $7.55

Webcast

FIS will sponsor a live webcast of its earnings conference call with the
investment community beginning at 8:30 a.m. (EDT) Tues., April 30, 2019.
To access the webcast, go to the Investor
Relations section of FIS’ homepage, www.fisglobal.com.
A replay will be available after the conclusion of the live webcast.

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
in the United States. 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, we have provided certain
non-GAAP financial measures.

These non-GAAP measures include adjusted revenue, constant currency
revenue, organic revenue increase/decrease, EBITDA, adjusted EBITDA,
adjusted EBITDA margin, adjusted net earnings (including per share
amounts), adjusted cash flows from operations and free cash flow. These
non-GAAP measures may be used in this release and/or in the attached
supplemental financial information.

We believe these non-GAAP measures help investors better understand the
underlying fundamentals of our business. As further described below, the
non-GAAP revenue and earnings measures presented eliminate items
management believes are not indicative of FIS’ operating performance.
The constant currency and organic revenue increase/decrease measures
adjust for the effects of exchange rate fluctuations, while organic
revenue increase/decrease also adjusts for acquisitions and
divestitures, giving investors further insight into our performance.
Finally, the non-GAAP cash flow measures provide further information
about the ability of our business to generate cash. For these reasons,
management also uses these non-GAAP measures in its assessment and
management of FIS’ performance.

Adjusted revenue consists of revenue, increased to reverse the
purchase accounting deferred revenue adjustment made upon the
acquisition of SunGard. The deferred revenue adjustment represents
revenue that would have been recognized in the normal course of business
by SunGard under GAAP but was not recognized due to GAAP purchase
accounting adjustments. The deferred revenue adjustment in purchase
accounting was made entirely in the Corporate and Other segment;
reported GAAP results for the IFS and GFS segments are not affected by
this adjustment and, therefore, no adjusted revenue is presented for
these segments.

Constant currency revenue represents (i) adjusted revenue, as
defined above, in respect of the consolidated results and the Corporate
and Other segment and (ii) reported revenue in respect of the IFS and
GFS segments, in each case excluding the impact of fluctuations in
foreign currency exchange rates in the current period.

Organic revenue increase/decrease is constant currency revenue,
as defined above, for the current period compared to an adjusted revenue
base for the prior period, which is further adjusted to add
pre-acquisition revenue of acquired businesses for a portion of the
prior year matching the portion of the current year for which the
business was owned, and subtract pre-divestiture revenue for divested
businesses for the portion of the prior year matching the portion of the
current year for which the business was not owned, for any acquisitions
or divestitures by FIS.

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

Adjusted EBITDA is EBITDA, as defined above, excluding certain
costs and other transactions which management deems non-operational in
nature, the removal of which improves comparability of operating results
across reporting periods. This measure is reported to the chief
operating decision maker for purposes of making decisions about
allocating resources to the segments and assessing their performance.
For this reason, adjusted EBITDA, as it relates to our segments, is
presented in conformity with Accounting Standards Codification 280,
Segment Reporting, and is excluded from the definition of non-GAAP
financial measures under the Securities and Exchange Commission’s
Regulation G and Item 10(e) of Regulation S-K.

Adjusted EBITDA margin reflects adjusted EBITDA divided by
adjusted revenue.

Adjusted net earnings excludes the impact of certain costs and
other transactions which management deems non-operational in nature, the
removal of which improves comparability of operating results across
reporting periods. It also excludes the impact of depreciation and
amortization and equity method investment earnings (loss), both of which
are recurring.

Adjusted net earnings per diluted share, or Adjusted EPS,
reflects adjusted net earnings from continuing operations divided by
weighted average diluted shares outstanding.

Adjusted cash flows from operations reflect net cash provided by
operating activities adjusted for the net change in settlement assets
and obligations and exclude certain transactions that are closely
associated with non-operating activities or are otherwise
non-operational in nature and not indicative of future operating cash
flows.

Free cash flow reflects adjusted cash flows from operations 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 measures. 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, including footnotes describing the specific adjustments, are
provided in the attached schedules and in the Investor Relations section
of the FIS website, www.fisglobal.com.

About
FIS

FIS is a global leader in financial services technology, providing
solutions and services to clients in the retail and institutional
banking, payments, capital markets, asset management and wealth and
retirement markets. Through the depth and breadth of our solutions
portfolio, global capabilities and domain expertise, FIS serves clients
in over 130 countries. Headquartered in Jacksonville, Florida, FIS
employs more than 47,000 people worldwide and holds leadership positions
in payment processing, financial software and banking solutions.
Providing software, services and outsourcing of the technology that
empowers the financial world, FIS is a Fortune 500 company and is a
member of the Standard & Poor’s 500® Index.

Follow FIS 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
anticipated financial outcomes, including any earnings guidance of the
Company, business and market conditions, outlook, foreign currency
exchange rates, expected dividends and share repurchases, the Company’s
sales pipeline and anticipated profitability and growth, as well as
other statements about our expectations, beliefs, 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:

• the risk that the Worldpay transaction will not be completed or will
  not provide the expected benefits, or that we will not be able to
  achieve the cost or revenue synergies anticipated;
• the risk that the integration of FIS and Worldpay will be more
  difficult, time-consuming or expensive than anticipated;
• the risk of customer loss or other business disruption in connection
  with the Worldpay transaction, or of the loss of key employees;
• the possible occurrence of an event, change or other circumstance that
  would give rise to the termination of the merger agreement;
• the fact that unforeseen liabilities of FIS or Worldpay may exist;
• the risk that acquired businesses will not be integrated successfully,
  or that the integration will be more costly or more time-consuming and
  complex than anticipated;
• the risk that cost savings and other synergies anticipated to be
  realized from acquisitions may not be fully realized or may take
  longer to realize than expected;
• the risk of doing business internationally;
• changes in general economic, business and political conditions,
  including the possibility of intensified international hostilities,
  acts of terrorism, changes in either or both the United States and
  international lending, capital and financial markets, and currency
  fluctuations;
• the effect of legislative initiatives or proposals, statutory changes,
  governmental or other applicable regulations and/or changes in
  industry requirements, including privacy and cybersecurity laws and
  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 unauthorized access, theft, corruption or loss of personal
  information and computer viruses and other malware affecting our
  software or platforms, and the reactions of customers, card
  associations, government regulators and others to any such events;
• the risk that implementation of software (including software updates)
  for customers or at customer locations or employee error in monitoring
  our software and platforms may result in the corruption or loss of
  data or customer information, interruption of business operations,
  outages, exposure to liability claims or loss of customers;
• the reaction of current and potential customers to communications from
  us or regulators regarding information security, risk management,
  internal audit or other matters;
• competitive pressures on pricing related to the decreasing number of
  community banks in the U.S., the development of new disruptive
  technologies competing with one or more of our solutions, increasing
  presence of international competitors in the U.S. market and the entry
  into the market by global banks and global companies with respect to
  certain competitive solutions, each of which may have the impact of
  unbundling individual solutions from a comprehensive suite of
  solutions we provide to many of our customers;
• the failure to innovate in order to keep up with new emerging
  technologies, which could impact our solutions and our ability to
  attract new, or retain existing, customers;
• the failure to meet financial goals to grow the business in Brazil
  after the unwinding of the Brazilian Venture;
• the risks of reduction in revenue from the loss of existing and/or
  potential customers in Brazil after the unwinding of the Brazilian
  Venture;
• an operational or natural disaster at one of our major operations
  centers; and
• other risks detailed in the “Risk Factors” and other sections of our
  Annual Report on Form 10-K for the fiscal year ended December 31, 2018
  and in our other filings with the Securities and Exchange Commission.

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.

Additional Information and Where to Find It

This communication is being made in respect of the proposed merger
transaction between Fidelity National Information Services, Inc. (“FIS”)
and Worldpay Inc (“Worldpay”). In connection with the proposed merger,
FIS has filed with the SEC a registration statement on Form S-4 that
will include the joint proxy statement of FIS and Worldpay and a
prospectus of FIS, as well as other relevant documents regarding the
proposed transaction. A definitive joint proxy statement/prospectus will
also be sent to FIS shareholders and Worldpay stockholders. INVESTORS
ARE URGED TO READ THE REGISTRATION STATEMENT AND THE JOINT PROXY
STATEMENT/PROSPECTUS REGARDING THE MERGER WHEN IT BECOMES AVAILABLE AND
ANY OTHER RELEVANT DOCUMENTS FILED WITH THE SEC, AS WELL AS ANY
AMENDMENTS OR SUPPLEMENTS TO THOSE DOCUMENTS, BECAUSE THEY WILL CONTAIN
IMPORTANT INFORMATION. A free copy of the joint proxy
statement/prospectus, as well as other filings containing information
about FIS and Worldpay, may be obtained at the SEC’s website (http://www.sec.gov).
You will also be able to obtain these documents, free of charge, from
FIS at www.investor.fisglobal.com
or by emailing info.investorrelations@fisglobal.com or
from Worldpay by accessing Worldpay’s website at www.investor.worldpay.com
or by emailing IR@worldpay.com.

Participants in the Solicitation

FIS and Worldpay and certain of their respective directors and executive
officers may be deemed to be participants in the solicitation of proxies
from FIS shareholders and Worldpay stockholders in respect of the
transaction described in the joint proxy statement/prospectus.
Information regarding FIS directors and executive officers is contained
in FIS Proxy Statement on Schedule 14A, dated April 12, 2018, which is
filed with the SEC. Information regarding Worldpay’s directors and
executive officers is contained in Worldpay’s Proxy Statement on
Schedule 14A, dated April 3, 2018, which is filed with the SEC.
Additional information regarding the interests of those participants and
other persons who may be deemed participants in the transaction may be
obtained by reading the joint proxy statement/prospectus regarding the
proposed merger when it becomes available. Free copies of this document
may be obtained as described in the preceding paragraph. This
communication does not constitute an offer to sell or the solicitation
of an offer to buy any securities or a solicitation of any vote or
approval, nor shall there be any sale of securities in any jurisdiction
in which such offer, solicitation or sale would be unlawful prior to
registration or qualification under the securities laws of such
jurisdiction. No offering of securities shall be made except by means of
a prospectus meeting the requirements of Section 10 of the Securities
Act of 1933, as amended.

Fidelity National Information Services, Inc.
Earnings Release
Supplemental Financial Information
April 30, 2019

(1) See note (3) to Exhibit E.

Amounts in table may not sum or calculate due to rounding.

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

See notes to Exhibit E.

Amounts in table may not sum or calculate due to rounding.

See notes to Exhibit E.

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