On this page of StockholderLetter.com we present the latest annual shareholder letter from Fidelity National Information Services, Inc. — ticker symbol FIS. Reading current and past FIS letters to shareholders can bring important insights into the investment thesis.

 •  4/26/2024 Letter Continued (Full PDF)
 •  4/14/2023 FIS Stockholder Letter
 •  More "Business Services & Equipment" Category Stockholder Letters
 •  FIS Benford's Law Stock Score = 74

FIS Shareholder/Stockholder Letter Transcript:

To Our Shareholders:
A year ago, in my first report to you as chief executive officer
and president of FIS, I outlined a bold, multiyear program
aimed at transforming the competitive and financial profile of
FIS. Through our Future Forward strategy, we would create a
more focused, nimble, innovative and client-centric company
that drives stronger results, increases shareholder value and
enhances our clients    experience. That plan was based on
three key outcomes:
    Build a culture of continuous client excellence where our
clients are at the center of everything we do.
    Move with speed and purpose to deliver best-in-class
solutions that make FIS the destination for innovation in
the financial technology industry.
    Streamline and simplify decision-making to accelerate time
to market.
A year later, I could not be more pleased by the progress
we have made in such a short period of time. Against
the backdrop of a banking crisis, a steep rise in inflation
and interest rates, and an uncertain macroeconomic
environment, our global colleagues rose to the occasion and
met every one of our strategic and financial goals in 2023.
Because of their hard work and accomplishments, FIS is a
much stronger, more focused and client-centric company
today.
Key Accomplishments in 2023
Our accomplishments over the past year were nothing short
of transformative:
    We sold a majority stake in our Merchant Solutions
payments business to private equity firm GTCR, creating
two independent companies     FIS and Worldpay     with
the strategic flexibility and operational focus needed to
succeed in their respective markets. At a total valuation
of $18.5 billion, including $1 billion of contingent
consideration, and including greater than $12 billion of
upfront net proceeds to FIS, the transaction represented
the largest fintech M&A transaction since 2019 and is
among the largest partial corporate carveouts in U.S.
history. FIS and Worldpay will continue to work closely
together under a strategic go-to-market partnership that
leverages the two companies    respective strengths to serve
the needs of our joint clients.
    Through Future Forward, we undertook a methodical,
companywide effort to review and enhance systems and
touchpoints where we serve or interact with our clients.
This effort involved hundreds of different projects and
thousands of our global colleagues, all working together
toward the goal of improving our clients    experiences with
FIS. Among other initiatives, we overhauled our service
ticketing systems, streamlined product delivery and
implementation, redesigned customer interfaces, and
simplified our onboarding practices. While the process
of building a culture of continuous client excellence
will never be done, our clients tell us they are seeing a
noticeable improvement in the quality of the support they
are receiving from FIS and greater value in the product
innovations we are bringing to market.
"FIS is a much stronger,
more focused and clientcentric company t=oday.''"
    We leveraged automation and other advanced technologies
to simplify our operations, streamline processes and speed
decision-making. By redesigning how we work through
a client-centric lens, we have made the company more
efficient, flexible and agile while achieving annualized
run-rate cash savings of more than $550 million through
year-end 2023. Overall, we expect to realize $1 billion of
total cash savings across the enterprise by the end of 2024
through our business simplification program.
    We reinvigorated our innovation engine through
targeted investments in next-generation solutions that
offer advanced new functionality to our clients. Recent
innovations from FIS include enhancements to our marketleading Modern Banking Platform, our new Digital One
Consumer Studio integrated digital banking platform, our
software-as-a-service (SaaS)-based FIS Payments Hub
that modernizes the corporate payments journey, and our
FIS ANNUAL REPORT 2023
1

unified Private Equity Treasury and Payments solution that
streamlines data flows between the front, middle and back
offices to provide enhanced visibility into organizational
cash flows.
    We refocused our sales efforts around higher-value,
software-based solutions that meet client needs while
providing multiyear, recurring revenue streams that
enhance our financial predictability and profitability.
As part of this effort, we refreshed our sales tools and
processes to sharpen our execution and ability to provide
best-in-class delivery and implementation. While we are
still early in this process, we are already seeing the results
in a growing pipeline of high-value opportunities, enhanced
margins and improved project implementations.
Progress in Advancing a Client-Centric
Culture
Most encouraging to me is the great progress we have made
in advancing a culture dedicated to serving and responding
to the needs of our clients with speed and innovation.
FIS is privileged to serve a marquee base of clients around the
world. We count among our clients 95% of the Forbes World   s
Best Banks, 90% of the world   s largest private equity firms and
some of the world   s largest asset managers, investment banks
and corporations. We take pride in the fact that many of our
client relationships span decades and multiple generations
of technology     a testament to our ability to build enduring,
value-creating partnerships with our clients.
Today, we continue to partner with our clients on
groundbreaking technology projects that help them seize
growth opportunities and realize their business goals.
Consider just a few of our marketplace successes:
A range of leading banks and financial institutions are
leveraging the power and flexibility of the cloud-native FIS
Reduced cost
base by more than
$550 MILLION
through year-end 2023.
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FISFIS
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Modern Banking Platform to offer digital-only banks that
allow them to capture new deposit accounts as consumers
take advantage of current high interest rates. In all, more
than $18 billion of deposits and nearly 2.5 million customer
accounts are managed on digital banks powered by the FIS
Modern Banking Platform.
We are seeing growing demand
from regional and community
banks for our industry-leading IBS core banking system and
our advanced digital banking and payments solutions.
Collectively, regional banks manage more than $1 trillion in
deposits and handle some 5 billion transactions annually
through FIS systems. It is no wonder that more regional banks
    such as Banc of California, now the third-largest bank
headquartered in California following its merger with PacWest
Bancorp     are choosing to build for the future on our leadingedge core banking and digital platforms.
A leading alternative asset manager with nearly $60 billion of
capital under management chose the FIS Cleared Derivatives
solution to streamline and modernize its derivatives clearing
processing operations. The organization is one of a growing
number of leading buy-side firms that are discovering the
power and advanced functionality of FIS Capital Markets
solutions that have traditionally been used by sell-side firms.
Large, multinational companies,
including engineering leader
Sandvik Group, are choosing FIS
to streamline and transform their treasury and risk
management processes. Sandvik Group, which has more
than 350 operations around the world, leveraged the
advanced workflows and functionality of the FIS Treasury and
Risk systems to modernize and consolidate a sprawling
Expect to realize
$1 BILLION
of total cost savings
by the end of 2024.

network of payment systems into a state-of-the-art treasury
and risk system, enabling the company to significantly reduce
costs while providing real-time views into cash and liquidity.
At the end of the day, the ultimate measure of our success is
the value we bring to our clients through the application of
advanced technology. By delivering clear, tangible business
benefits to the organizations we work with, we continue to
win the right to partner with them in exciting new areas that
take advantage of the never-ending march of technology.
2023 Financial Highlights    
A Year of Financial Progress
All this work has yielded improved consistency and
predictability in our financial results. Driven by strong
execution by our colleagues around the world, in 2023 we
achieved every one of the key financial goals we set out at
the beginning of the year:
    On an adjusted basis excluding the operations of our
former Worldpay Merchant Solutions business, our fullyear 2023 revenue grew 3% . This growth was driven
by another strong year in our Capital Markets business,
which grew revenue by 5%, on an adjusted basis as well
as 2% revenue growth in our Banking Solutions business.
    As we continue to shift our business mix toward higherquality, software-based solutions, our base of multiyear
recurring revenue grew by 5% on an adjusted basis in 2023
and represented 80% of our overall revenue in the year.
    Reflecting the increased efficiency and profitability of our
operations, we returned the company to year-over-year
margin expansion in the second half of the year and are
poised to continue that profitability improvement in 2024.
Returned
$1.7 BILLION
of capital to shareholders
in the form of dividends
and share repurchases.
"We are unlocking our
financial technology to
the world, creating growth
opportunities for our clients,
investors and colleagues."
Our cash flow in 2023 also reflected our enhanced
organizational efficiency and profitability. We generated strong
full-year 2023 free cash flow, exceeding our target by
more than $500 million. This strong free cash generation
allowed us to continue to reduce debt while returning $1.7
billion of capital to shareholders in the form of dividends
and share repurchases.
Going forward, we will be using the proceeds of the
Worldpay sale to further reduce debt and strengthen our
investment-grade balance sheet while continuing to invest
in the business and our growth initiatives.
Taking Our Core Capabilities Into New
Growth Markets
With all these changes in our business, the question arises:
Who is FIS today and what differentiates us from other
financial technology providers in the market?
The FIS of today builds on the FIS of yesterday, only with
greater clarity of focus and purpose and with a singular
resolve to leverage our vast resources and capabilities
Exceeded our
free cash flow target
by more than
$500 MILLION.
FIS ANNUAL REPORT 2023
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 4/26/2024 Letter Continued (Full PDF)