2008 Summary Annual Report
The Power Within.
Corporate Headquarters
255 Fiserv Drive
Brookfield, WI 53045
Phone: 262-879-5000
Toll Free: 800-872-7882
general_info@fiserv.com
www.fiserv.com
Fiserv is a registered trademark of Fiserv, Inc.
All product and brand names mentioned are property of their respective companies.
©2009 Fiserv, Inc. All rights reserved.
Financial Highlights
$5
$5
$5
$5
$600
$4.7
$600
$600
$600
$4.00
$537
$4.00
$4.00
$4.00
$4.00
$4.00
$3.75
$4.00
$4.00
(In millions, except per share and stock price data)
2008
2007
2006
2005
Revenues
Adjusted income
Adjusted earnings per share
Cash flow from operations
Free cash flow
Free cash flow per share
Stock price
Average share count
$ 4,739
$ 3,897
$ 3,544
$ 3,229
537
3.29
775
611
3.75
450
2.67
565
443
2.62
410
2.31
541
381
2.15
379
1.98
526
385
2.02
36.37
163.1
55.49
168.8
52.42
177.5
43.27
191.0
4
3
2
1
0
4
3
2
1
0
4
3
2
1
0
4
3
2
1
0
05
06
07
08
05
06
07
05
08
06
07
08
05
500
400
300
200
100
0
06
500
400
300
200
100
0
500
400
300
200
100
0
$3.29
3.00
3.00
3.00
3.00
3.00
3.00
3.00
3.00
500
400
300
2.00
2.00
2.00
2.00
2.00
2.00
2.00
2.00
200
100
1.00
1.00
1.00
1.00
1.00
1.00
1.00
1.00
* Adjusted income, adjusted earnings per share, free cash flow and free cash flow per share are non-GAAP financial measures. See page 24 for additional
information about these non-GAAP financial measures. All results are derived from continuing operations and exclude discontinued operations.
Revenues
(in billions)
Adjusted income
(in millions)
Adjusted earnings
per share
Free cash flow
per share
Revenues
Revenues
Revenues
Revenues
Adjusted
Income
Adjusted
Income
Adjusted
Income
Adjusted
Income
Adjusted
Earnings
Adjusted
Earnings
Adjusted
Earnings
Adjusted
Earnings
Free Cash
Flow/Share
Free Cash
Flow/Share
Free Cash
Flow/Share
Free Cash
Flow/Share
05
07
06
08
07
08
05
06
07
05
08
06
07
08
05
06
05
07
06
08
0
0.00
0.00
07
08
05
06
0.00
07
05
08
06
0.00
07
0.00
05
08
06
05
07
06
08
0.00
07
08
05
06
0.00
07
05
08
06
0.00
07
08
05
06
07
08
Corporate Information
Board of Directors
Donald F. Dillon
Chairman of the Board
Operating Committee
Jeffery W. Yabuki
President and Chief Executive Officer
Directors
Daniel P. Kearney
Peter J. Kight
Gerald J. Levy
Denis J. O’Leary
Glenn M. Renwick
Kim M. Robak
Doyle R. Simons
Thomas C. Wertheimer
Jeffery W. Yabuki
Peter J. Kight
Vice Chairman
James W. Cox
Executive Vice President,
Corporate Development
Douglas J. Craft
Executive Vice President,
Depository Institution Services
Bridie A. Fanning
Executive Vice President,
Human Resources
Rahul Gupta
Executive Vice President,
Card Services
Stephen E. Olsen
Group President,
Depository Institution Services
Charles W. Sprague
Executive Vice President,
General Counsel and Secretary
Murray C. Walton
Senior Vice President,
Chief Risk Officer
Thomas W. Warsop, III
Group President,
Financial Institution Services
Thomas J. Hirsch
Executive Vice President,
Chief Financial Officer and
Treasurer
Richard K. Jones
Executive Vice President,
Chief Information Officer
Donald J. MacDonald
Executive Vice President,
Chief Marketing Officer
Daniel F. Murphy
Senior Vice President,
Director of Corporate Audit
Thomas A. Neill
Executive Vice President,
Depository Institution Services
Our Leadership
Our Leadership
Fiserv opens The
NASDAQ Stock Market
in honor of its
25th anniversary and
new brand launch
Corporate Headquarters
Fiserv, Inc.
Shareholder Information
Copies of the company’s annual,
255 Fiserv Drive
Brookfield, WI 53045
(262) 879-5000
Websites
www.fiserv.com
www.newfiserv.com
quarterly and current reports,
as filed with the Securities and
Exchange Commission, are
available on request from the company.
Visit our website, www.fiserv.com,
for updated news releases, stock
performance, financial reports,
conference call webcast, SEC filings,
Investor Relations
(800) 425-FISV
corporate governance and
other investor information.
Stock Listing and Symbol
NASDAQ Global Select Market
Symbol: FISV
Shareholders’ Meeting
The 2009 Annual Meeting of
Shareholders will be held on
Wednesday, May 20, 2009
Independent Registered
Public Accounting Firm
Deloitte & Touche LLP
Milwaukee, Wisconsin
Transfer Agent
Computershare Trust Company, N.A.
P.O. Box 43069
at 10:00 a.m. Central Time
Providence, RI 02940-3069
at the Fiserv Corporate
(800) 446-2617
Headquarters, 255 Fiserv Drive,
www.computershare.com
Brookfield, Wisconsin.
2008 Summary Annual Report
The Power Within.
Corporate Headquarters
255 Fiserv Drive
Brookfield, WI 53045
Phone: 262-879-5000
Toll Free: 800-872-7882
general_info@fiserv.com
www.fiserv.com
Fiserv is a registered trademark of Fiserv, Inc.
All product and brand names mentioned are property of their respective companies.
©2009 Fiserv, Inc. All rights reserved.
Financial Highlights
$5
$5
$5
$5
$600
$4.7
$600
$600
$600
$4.00
$537
$4.00
$4.00
$4.00
$4.00
$4.00
$3.75
$4.00
$4.00
(In millions, except per share and stock price data)
2008
2007
2006
2005
Revenues
Adjusted income
Adjusted earnings per share
Cash flow from operations
Free cash flow
Free cash flow per share
Stock price
Average share count
$ 4,739
$ 3,897
$ 3,544
$ 3,229
537
3.29
775
611
3.75
450
2.67
565
443
2.62
410
2.31
541
381
2.15
379
1.98
526
385
2.02
36.37
163.1
55.49
168.8
52.42
177.5
43.27
191.0
4
3
2
1
0
4
3
2
1
0
4
3
2
1
0
4
3
2
1
0
05
06
07
08
05
06
07
05
08
06
07
08
05
500
400
300
200
100
0
06
500
400
300
200
100
0
500
400
300
200
100
0
$3.29
3.00
3.00
3.00
3.00
3.00
3.00
3.00
3.00
500
400
300
2.00
2.00
2.00
2.00
2.00
2.00
2.00
2.00
200
100
1.00
1.00
1.00
1.00
1.00
1.00
1.00
1.00
* Adjusted income, adjusted earnings per share, free cash flow and free cash flow per share are non-GAAP financial measures. See page 24 for additional
information about these non-GAAP financial measures. All results are derived from continuing operations and exclude discontinued operations.
Revenues
(in billions)
Adjusted income
(in millions)
Adjusted earnings
per share
Free cash flow
per share
Revenues
Revenues
Revenues
Revenues
Adjusted
Income
Adjusted
Income
Adjusted
Income
Adjusted
Income
Adjusted
Earnings
Adjusted
Earnings
Adjusted
Earnings
Adjusted
Earnings
Free Cash
Flow/Share
Free Cash
Flow/Share
Free Cash
Flow/Share
Free Cash
Flow/Share
05
07
06
08
07
08
05
06
07
05
08
06
07
08
05
06
05
07
06
08
0
0.00
0.00
07
08
05
06
0.00
07
05
08
06
0.00
07
0.00
05
08
06
05
07
06
08
0.00
07
08
05
06
0.00
07
05
08
06
0.00
07
08
05
06
07
08
Corporate Information
Board of Directors
Donald F. Dillon
Chairman of the Board
Operating Committee
Jeffery W. Yabuki
President and Chief Executive Officer
Directors
Daniel P. Kearney
Peter J. Kight
Gerald J. Levy
Denis J. O’Leary
Glenn M. Renwick
Kim M. Robak
Doyle R. Simons
Thomas C. Wertheimer
Jeffery W. Yabuki
Peter J. Kight
Vice Chairman
James W. Cox
Executive Vice President,
Corporate Development
Douglas J. Craft
Executive Vice President,
Depository Institution Services
Bridie A. Fanning
Executive Vice President,
Human Resources
Rahul Gupta
Executive Vice President,
Card Services
Stephen E. Olsen
Group President,
Depository Institution Services
Charles W. Sprague
Executive Vice President,
General Counsel and Secretary
Murray C. Walton
Senior Vice President,
Chief Risk Officer
Thomas W. Warsop, III
Group President,
Financial Institution Services
Thomas J. Hirsch
Executive Vice President,
Chief Financial Officer and
Treasurer
Richard K. Jones
Executive Vice President,
Chief Information Officer
Donald J. MacDonald
Executive Vice President,
Chief Marketing Officer
Daniel F. Murphy
Senior Vice President,
Director of Corporate Audit
Thomas A. Neill
Executive Vice President,
Depository Institution Services
Our Leadership
Our Leadership
Fiserv opens The
NASDAQ Stock Market
in honor of its
25th anniversary and
new brand launch
Corporate Headquarters
Fiserv, Inc.
Shareholder Information
Copies of the company’s annual,
255 Fiserv Drive
Brookfield, WI 53045
(262) 879-5000
Websites
www.fiserv.com
www.newfiserv.com
quarterly and current reports,
as filed with the Securities and
Exchange Commission, are
available on request from the company.
Visit our website, www.fiserv.com,
for updated news releases, stock
performance, financial reports,
conference call webcast, SEC filings,
Investor Relations
(800) 425-FISV
corporate governance and
other investor information.
Stock Listing and Symbol
NASDAQ Global Select Market
Symbol: FISV
Shareholders’ Meeting
The 2009 Annual Meeting of
Shareholders will be held on
Wednesday, May 20, 2009
Independent Registered
Public Accounting Firm
Deloitte & Touche LLP
Milwaukee, Wisconsin
Transfer Agent
Computershare Trust Company, N.A.
P.O. Box 43069
at 10:00 a.m. Central Time
Providence, RI 02940-3069
at the Fiserv Corporate
(800) 446-2617
Headquarters, 255 Fiserv Drive,
www.computershare.com
Brookfield, Wisconsin.
We Look Different.
Because We Are.
Because We Are.
As we begin our 25th year, we have taken another
significant step in our commitment to extend our
leadership and enhance the value we provide to our
clients. We have unveiled a new brand identity to reflect
an enhanced market approach and new energy.
Our new brand mark speaks volumes about where we’ve
been and where we’re headed. Continuing with the
rich heritage of the Fiserv name, our new logo signals a
progressive and unified organization.
Our new signature orange reflects a vibrant, energized
company. All lowercase, the mark conveys a quiet
confidence blended with approachability. The period
within the mark, or “proof point,” punctuates our
commitment to leading the transformation of financial
services technology for our clients’ benefit – period.
Unified under one brand, we’re making it easier for
clients to experience the full breadth of our solutions.
We’re not only addressing their day-to-day technology
requirements, we’re delivering the innovation they’ll
need now and in the future to meet the demands of an
increasingly digital and connected world.
1
2
My Fellow Shareholders
My Fellow Shareholders
2008 was a watershed year. A year when economic
and political factors converged to form the beginning
of what will be a multi-year transformation of the global
financial services industry. The adage, “expect the
unexpected,” became the norm, and we buckled in
for what will likely be the most economic turbulence in
more than 70 years.
Change is not Optional
The financial services industry is the eye of the storm.
In fact, some might say the broad-based group that
comprises depository institutions – banks, thrifts and credit
unions – is under siege. And while the negative pressure is
spreading rapidly across the entire economy, the financial
services sector has felt the majority of the early impact. The
wave of bad news across much of the industry, and the
impact on those serving financial services providers, grew
progressively worse during the year. And even though Fiserv
achieved strong financial performance in 2008, our results
were clearly impacted by the negative market conditions.
The range of business opportunities we have seen over
the last several years, along with the manner in which
consumers acquire financial services, is now in flux. That
point is without debate. While we would certainly prefer a
very healthy end market, we view the current dislocation as
an additional catalyst to accelerate our level of change.
3
Clients know that we are their partner in possibility.
Clients know that we are their partner in possibility.
$700
600
500
400
300
200
100
0
60
50
40
30
20
10
0
$800
700
600
500
400
300
200
100
0
06
07
08
05
06
07
08
05
06
07
08
Free cash flow
(in millions)
Stock
Cash flow
from operations
(in millions)
Tom Hirsch, CFO, and
Pete Kight, Vice Chairman
of Fiserv
In 2006 we launched our platform for change,
known as Fiserv 2.0. This transformation has
proven even more apropos as the dynamic
global financial services market is impacting
how we all do business. The proactive approach
26.3%
we started several years ago has us in the
enviable position of being well ahead of the
24.4%
change curve.
21.8%
06
07
08
Adjusted
operating margin
For the last few years, we have taken a number
of steps to extend our business model, with a
stronger focus on integration and innovation,
enhancing efficiency, pinpointing the most
distinct market opportunities, and executing a
more disciplined approach to capital allocation.
The events of 2008 have served as a further
catalyst, which is helping us to achieve a larger
share of the market opportunities. We expect
the efforts we began two years ago to pay
Adjusted Operating
Margin
dividends well into the future.
Meeting Our Commitments
At the beginning of 2008, we shared three
primary goals with our shareholders:
• Deliver earnings results consistent with
our commitments, regardless of
economic conditions
• Make significant progress in
integrating CheckFree
• Enhance our level of competitive
differentiation through innovation and
integration, leading to superior results
for our clients and shareholders
We shared these goals as a road map for
our owners to assess our financial and
strategic performance, given the acquisition
of CheckFree and the prospect of challenging
market conditions. We are proud to say that
we achieved our objectives on all three fronts
4
in a market that was far worse than we
the businesses, we have identified more
anticipated. We did what we said we would do,
opportunity to create market differentiation and
and more.
economic upside than we originally anticipated.
“We have identified more opportunity
We continued to enhance our focus on
to create market differentiation
and economic upside than we
originally anticipated.”
Our financial performance for the year was
strong. Total revenue for the year increased
nearly $1 billion largely on the strength of the
2007 acquisition of CheckFree. And while the
environment clearly impacted our internal
revenue growth, we served more clients and
delivered more products than ever before.
innovation and were rewarded a number of
times during the year. In addition to several
top awards for product innovation, we once
again claimed the top spot in the FinTech 100.
Fiserv was ranked among the top five in the
InformationWeek 500, and importantly, as
the most innovative user of technology for
the Financial Services and Banking industry.
Our early efforts to spur innovation are
making a difference for clients and energizing
our associates.
Clients know that we are their partner in possibility.
Clients know that we are their partner in possibility.
We grew adjusted earnings per share by
23 percent to $3.29. This growth reflected the
resilience and diversity of our business model,
along with strong execution, which offset
several negative environmental impacts on our
results. We negotiated a three-year contract
60
extension with our largest client, which added
$611
more certainty and longevity to this important
50
relationship. We also generated record free
cash flow of $611 million, which we deployed
40
to a combination of acquisition, share
30
repurchase and more than $1.3 billion of
debt repayment.
20
Our top strategic accomplishment for the year
10
was the integration of CheckFree. We are
ahead of schedule on the integration, which
05
is translating to more value for clients and
07
08
06
0
shareholders. In addition, as we have combined
$700
600
500
400
300
200
100
0
06
07
08
Free cash flow
(in millions)
Fiserv 2.0 Momentum
We introduced Fiserv 2.0 in order to continuously
evolve and enhance our level of market
leadership. We designed a platform to extend
our leadership and better serve the needs of
our clients.
$800
700
We made distinct progress in our transformation.
600
We continued to deliver more integrated value
500
to clients, achieving better than 130 percent
of our integrated sales targets for the year.
400
We enhanced our payments relationships
with clients – selling bill payment services to
200
550 clients in our initial year after the CheckFree
acquisition and winning more than 200 new
100
EFT/debit relationships during the year. And,
300
0
although in many cases we are just getting
07
08
06
05
06
07
08
started, the remaining potential is tremendous.
Free cash flow
(in millions)
Stock
Cash flow
from operations
(in millions)
Adjusted Operating
Margin
5
6
We further refined our mix of businesses by
For us, the proof point is in what we do every
selling a majority interest in our insurance group,
day. It’s not an accident that we lead the
which allows us to place additional focus on
industry on virtually any metric that measures
our core businesses. We freed up capital from
sustainable success: product innovation, clients
this transaction and will share in the potential
served, sales wins, transactions processed,
additional value to be created in the future.
award-winning recognition, cash flow and a
“ Our dynamic new color palette
of the organization’s commitment to excellence
whole host of others. It’s the cumulative result
At Left:
(From left to right)
Jeff Yabuki, President and
CEO, with Don Dillon,
Chairman of the Board
Below:
(From left to right)
Tom Warsop, Group
President, Financial
Institution Services;
Pete Kight, Vice Chairman;
Steve Olsen, Group President,
Depository Institution
Services; and Tom Hirsch,
CFO, all of Fiserv
visually separates us from
the commonality of the
competitive mass.”
In early 2009, we launched a vibrant and
energetic brand identity that embodies the spirit
of our new organization. The response from
clients, associates and shareholders has been
tremendous. This new identity represents the
next stage of our evolution.
Our dynamic new color palette visually separates
us from the commonality of the competitive
mass. The lower-case typeface is a manifestation
each and every day.
Fiserv as a Beacon
The death of the banking industry has been
greatly exaggerated. The key driver of the
banking industry is less the number of
institutions, which has been shrinking for more
than 20 years, than the number of accounts
that underlie those institutions. Over the last
five years, the number of deposit accounts in the
U.S. has increased by 6 percent annually, even
while the total number of institutions declined
by more than 2,000 over the same period.
of the confidence that
resonates across our
client base as a result
of their relationships
with Fiserv. Our clients
know that we are their
“partner in possibility”
by working to further
their business goals
“Being a Fiserv client is not a
question; it’s a statement.”
Consumers and businesses will continue to
transact, and although there may be some
short-term variability, we expect transactions
and accounts to grow over time. The strength
of Fiserv’s recurring revenue business model
is that our key revenue drivers are more
and enable their desired
aligned with accounts and transactions than
levels of success.
Being a Fiserv client
is not a question;
it’s a statement.
with the number of institutions. That business
model, along with the quality of our people,
will allow us to prosper even in this
challenging environment.
We recognize that market share is won and
lost in a time of crisis. We are investing in
our products and solutions, with a goal of
significantly increasing the number of Fiserv
flags. As the economic tides change, we expect
7
to be even better positioned to realize additional
As we celebrate our 25th anniversary we are
success. Those investments, along with the
reminded of the commitment and dedication of
leading solutions we have today, will have the
the many people whose collective efforts have
cumulative effect of placing our clients among
shaped the company. Fiserv is an American
the most successful in the evolving landscape
success story, and a reminder that leadership
of financial services.
“Serving clients extraordinarily well
is in our DNA. It always has been,
and it always will be.”
Our continuing ability to deliver a full range of
solutions in this environment further validates
the quality of our solutions, the diversity
of our client base, and the strength of our
comes in all shapes, sizes and colors. We have
the right combination of energy, innovation,
excellence, and an unprecedented commitment
to transform the delivery of financial services.
Moving forward, the color of financial services
technology leadership is orange.
management team. It is also testament to our
Jeffery W. Yabuki
20,000 associates around the world who stand
(cid:69)(cid:103)(cid:90)(cid:104)(cid:94)(cid:89)(cid:90)(cid:99)(cid:105)(cid:21)(cid:86)(cid:99)(cid:89)(cid:21)(cid:56)(cid:93)(cid:94)(cid:90)(cid:91)(cid:21)(cid:58)(cid:109)(cid:90)(cid:88)(cid:106)(cid:105)(cid:94)(cid:107)(cid:90)(cid:21)(cid:68)(cid:91)(cid:195)(cid:88)(cid:90)(cid:103)
together to help financial institutions navigate
choppy waters. Serving clients extraordinarily
well is in our DNA. It always has been, and
it always will be.
Donald F. Dillon
Chairman of the Board
Jeff Yabuki talks with
Fiserv associates,
Tony Drewes and Judy Ladwig
8
Celebrating 25 Years
Celebrating 25 Years
History and experience are invaluable teachers. They, along with
our privileged client partnerships, will shape the Fiserv of tomorrow.
In 2009, Fiserv celebrates 25 years of innovation and growth.
1984
George Dalton and
Leslie Muma combine
First Data Processing
and Sunshine State
Systems to form Fiserv
“George and I decided that our company would
focus on serving the needs of the financial
industry exclusively. Our people, and our
investments in research and development,
are dedicated toward that one goal.”
Leslie Muma, Founder and Former CEO
1986
Fiserv becomes a public
company and is listed
on The NASDAQ Stock
Market under the symbol
FISV, as a $70 million
regional processor
1991
Fiserv enters the
commercial bank,
international and
credit union account
processing markets
1995
Fiserv acquires
Information Technology,
Inc., significantly
expanding the company’s
account processing
client base
1997
“E-bills” are available
to consumers
1998
Fiserv hits $1 billion
revenue milestone
“ Our clients in 1999 are facing a changing
competitive landscape. The financial
world is both converging and expanding,
as a new type of financial institution
emerges. Fiserv is ready to help our clients
stay ahead of their competition and
maximize their profitability.”
George Dalton, Founder and Former Chairman
“ Fiserv has a strategic vision that is
driven by responsiveness and foresight.
As a service company, our livelihood
depends on our responsiveness, and as
a technology company, our foresight is
key to our longevity.”
Ken Jensen, Former CFO
2003
Check 21 is signed
into law – fostering
innovation in payment
systems through
electronic imaging
2004
Fiserv is named #1 on the first FinTech 100 ranking of
companies serving the financial industry published by
American Banker and Financial Insights, Inc.
2005
Fiserv hires Jeff Yabuki as CEO in December
2002
Fiserv pushes above
$2 billion in revenue
Financial institutions
begin to offer electronic
billing and payment
services for free
2006
The company launches
Fiserv 2.0
Fiserv enters the
Fortune 500 ranking of
the largest companies
in the United States
2007
Fiserv acquires
CheckFree Corporation,
the global leader in
online banking and
bill payment, and the
largest acquisition in
Fiserv’s history
2008
Fiserv generates more than $600 million in free cash
flow for the first time
Fiserv launches mobile banking
Information Week 500 selects Fiserv as No.1 in the
Banking and Financial Services category
“The history of Fiserv and CheckFree
reverberates with countless events that
have set us on a path to defining online
banking in the U.S. Our rich history leads
us to be even more energized about the
opportunities ahead.”
Pete Kight, Vice Chairman
2009
Fiserv announces a
new market approach
and brand identity,
unifying all businesses
representing a single-
enterprise company
“ We know it’s the quality of our people,
and their commitment to our mission, that
creates the basis for our success. We are
proud of what we have done in our first
25 years and couldn’t be more excited
about our prospects for the next.”
Jeff Yabuki, CEO
(cid:48)(cid:69)(cid:79)(cid:80)(cid:76)(cid:69)(cid:12)(cid:207)(cid:73)(cid:68)(cid:69)(cid:65)(cid:83)(cid:207)(cid:65)(cid:78)(cid:68)(cid:207)(cid:84)(cid:69)(cid:67)(cid:72)(cid:78)(cid:79)(cid:76)(cid:79)(cid:71)(cid:89)(cid:207)(cid:65)(cid:76)(cid:76)(cid:207)(cid:87)(cid:79)(cid:82)(cid:75)(cid:73)(cid:78)(cid:71)(cid:207)(cid:84)(cid:79)(cid:71)(cid:69)(cid:84)(cid:72)(cid:69)(cid:82)(cid:14)(cid:207)(cid:41)(cid:84)(cid:7)(cid:83)(cid:207)(cid:72)(cid:65)(cid:80)(cid:80)(cid:69)(cid:78)(cid:73)(cid:78)(cid:71)(cid:207)(cid:72)(cid:69)(cid:82)(cid:69)(cid:14)(cid:207)(cid:55)(cid:75)(cid:68)(cid:87)(cid:112)(cid:86)(cid:3)(cid:75)(cid:82)(cid:90)(cid:3)(cid:41)(cid:76)(cid:86)(cid:72)(cid:85)(cid:89)(cid:3)(cid:76)(cid:86)(cid:3)
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(cid:71)(cid:72)(cid:79)(cid:76)(cid:89)(cid:72)(cid:85)(cid:3)(cid:80)(cid:82)(cid:85)(cid:72)(cid:3)(cid:83)(cid:72)(cid:85)(cid:86)(cid:82)(cid:81)(cid:68)(cid:79)(cid:76)(cid:93)(cid:72)(cid:71)(cid:3)(cid:68)(cid:81)(cid:71)(cid:3)(cid:83)(cid:85)(cid:82)(cid:73)(cid:76)(cid:87)(cid:68)(cid:69)(cid:79)(cid:72)(cid:3)(cid:72)(cid:91)(cid:83)(cid:72)(cid:85)(cid:76)(cid:72)(cid:81)(cid:70)(cid:72)(cid:86)(cid:3)(cid:87)(cid:75)(cid:85)(cid:82)(cid:88)(cid:74)(cid:75)(cid:3)(cid:86)(cid:82)(cid:79)(cid:88)(cid:87)(cid:76)(cid:82)(cid:81)(cid:86)(cid:3)(cid:79)(cid:76)(cid:78)(cid:72)(cid:3)(cid:38)(cid:82)(cid:85)(cid:76)(cid:79)(cid:79)(cid:76)(cid:68)(cid:81)(cid:3)(cid:50)(cid:81)(cid:79)(cid:76)(cid:81)(cid:72)(cid:17)(cid:3)(cid:58)(cid:76)(cid:87)(cid:75)(cid:3)(cid:41)(cid:76)(cid:86)(cid:72)(cid:85)(cid:89)(cid:15)(cid:3)(cid:92)(cid:82)(cid:88)(cid:3)(cid:75)(cid:68)(cid:89)(cid:72)(cid:3)
(cid:87)(cid:75)(cid:72)(cid:3)(cid:83)(cid:82)(cid:90)(cid:72)(cid:85)(cid:3)(cid:87)(cid:82)(cid:3)(cid:74)(cid:76)(cid:89)(cid:72)(cid:3)(cid:92)(cid:82)(cid:88)(cid:85)(cid:3)(cid:70)(cid:88)(cid:86)(cid:87)(cid:82)(cid:80)(cid:72)(cid:85)(cid:86)(cid:3)(cid:90)(cid:75)(cid:68)(cid:87)(cid:112)(cid:86)(cid:3)(cid:81)(cid:72)(cid:91)(cid:87)(cid:15)(cid:3)(cid:85)(cid:76)(cid:74)(cid:75)(cid:87)(cid:3)(cid:81)(cid:82)(cid:90)(cid:17)(cid:3)(cid:55)(cid:75)(cid:72)(cid:3)(cid:83)(cid:82)(cid:90)(cid:72)(cid:85)(cid:3)(cid:90)(cid:76)(cid:87)(cid:75)(cid:76)(cid:81)(cid:17)(cid:3)(cid:87)(cid:87)(cid:87)(cid:14)(cid:78)(cid:69)(cid:87)(cid:218)(cid:1)(cid:83)(cid:69)(cid:82)(cid:86)(cid:14)(cid:67)(cid:79)(cid:77)
(cid:48)(cid:65)(cid:89)(cid:77)(cid:69)(cid:78)(cid:84)(cid:83)(cid:207)(cid:207)(cid:207) (cid:207)(cid:207)(cid:207)(cid:48)(cid:82)(cid:79)(cid:67)(cid:69)(cid:83)(cid:83)(cid:73)(cid:78)(cid:71)(cid:207)(cid:51)(cid:69)(cid:82) (cid:86)(cid:73)(cid:67)(cid:69)(cid:83)(cid:207)(cid:207)(cid:207) (cid:207)(cid:207)(cid:207)(cid:50)(cid:73)(cid:83)(cid:75)(cid:207)(cid:6)(cid:207)(cid:35)(cid:79)(cid:77)(cid:80)(cid:76)(cid:73)(cid:65)(cid:78)(cid:67)(cid:69)(cid:207)(cid:207)(cid:207) (cid:207)(cid:207)(cid:207)(cid:35)(cid:85)(cid:83)(cid:84)(cid:79)(cid:77)(cid:69)(cid:82)(cid:207)(cid:6)(cid:207)(cid:35)(cid:72)(cid:65)(cid:78)(cid:78)(cid:69)(cid:76)(cid:207)(cid:45)(cid:65)(cid:78)(cid:65)(cid:71)(cid:69)(cid:77)(cid:69)(cid:78)(cid:84)(cid:207)(cid:207)(cid:207) (cid:207)(cid:207)(cid:207)(cid:34)(cid:85)(cid:83)(cid:73)(cid:78)(cid:69)(cid:83)(cid:83)(cid:207)(cid:41)(cid:78)(cid:84)(cid:69)(cid:76)(cid:76)(cid:73)(cid:71)(cid:69)(cid:78)(cid:67)(cid:69)(cid:207)(cid:6)(cid:207)(cid:47)(cid:80)(cid:84)(cid:73)(cid:77)(cid:73)(cid:90)(cid:65)(cid:84)(cid:73)(cid:79)(cid:78)
(cid:198)(cid:207)(cid:18)(cid:16)(cid:16)(cid:25)(cid:207)(cid:38)(cid:73)(cid:83)(cid:69)(cid:82)(cid:86)(cid:12)(cid:207)(cid:41)(cid:78)(cid:67)(cid:14)(cid:207)(cid:38)(cid:73)(cid:83)(cid:69)(cid:82)(cid:86)(cid:207)(cid:65)(cid:78)(cid:68)(cid:207)(cid:73)(cid:84)(cid:83)(cid:207)(cid:65)(cid:83)(cid:83)(cid:79)(cid:67)(cid:73)(cid:65)(cid:84)(cid:69)(cid:68)(cid:207)(cid:76)(cid:79)(cid:71)(cid:79)(cid:207)(cid:65)(cid:82)(cid:69)(cid:207)(cid:82)(cid:69)(cid:71)(cid:73)(cid:83)(cid:84)(cid:69)(cid:82)(cid:69)(cid:68)(cid:207)(cid:73)(cid:78)(cid:207)(cid:84)(cid:72)(cid:69)(cid:207)(cid:53)(cid:14)(cid:51)(cid:14)(cid:207)(cid:48)(cid:65)(cid:84)(cid:69)(cid:78)(cid:84)(cid:207)(cid:65)(cid:78)(cid:68)(cid:207)(cid:52)(cid:82)(cid:65)(cid:68)(cid:69)(cid:77)(cid:65)(cid:82)(cid:75)(cid:207)(cid:47)(cid:70)(cid:108)(cid:207)(cid:67)(cid:69)(cid:14)
9
10
A Relationship
A Relationship Spanning 30 Years
When Don Dillon first sold account processing software to First
Interstate Bank in the late 1970s, little did he know they would still
be using it 30 years later, or that his software would one day become
one of the strategic building blocks for Fiserv – the $4.7 billion
company he now chairs.
“We are primarily family owned, ‘generational,’
and aren’t quick to make long-term decisions,”
explains Lyle Knight, president and CEO of First
Interstate Bank. “i_Tech was a part of our family
for more than 40 years. The decision to sell it
was not an easy one.”
With that bold investment in a new technology,
First Interstate Bancsystem, Inc. of Billings,
It was the strength and mutual trust of our
Montana became one of the first financial
decades-long relationship that sealed the deal.
institutions to use Premier®, Fiserv’s original
“We decided that, instead of continuing as a strong
account processing solution. Today, Premier
competitor, we’d much rather be an important
is the nation’s most popular banking platform,
client of a technology partner ready to help us
serving more than 2,000 Fiserv clients. First
succeed for the next 20 years,” says Knight.
Interstate soon became a vendor and reseller of
that solution through its sister company, i_Tech
“ A bank is a mirror of its community.
Corporation, a regional data center for banks.
At Left:
(From left to right)
Lyle Knight, President and
CEO, First Interstate; Tom
King, VP Operations, First
Interstate; Josh Dannenberg,
Account Manager, Fiserv,
formerly i_Tech
“To work, a relationship needs to be mutual,”
says Ali Worick, program manager for Fiserv.
“Our partnership with First Interstate Bank
works both ways. They helped improve the
original product, and have used it successfully
for all these years.”
Fast forward to December 2008, when Fiserv
bought i_Tech Corporation from First Interstate –
a decision that focused on the bank’s long-term
success. This acquisition enabled us to expand
our account processing footprint by adding
more than 150 clients in several Western
states and to maintain a state-of-the-art
processing system
for the bank. More
importantly, the
transaction allowed
First Interstate, a
$6 billion regional
institution with more
than 70 branches
and a network of
150 ATMs, to focus
on banking.
If you have a strong and stable
community, your bank should do
just fine.”
– Lyle Knight, First Interstate Bank
As Fiserv’s solutions continue to evolve, First
Interstate is able to provide the most efficient
and profitable services to its customers. Using
Premier as a starting point, the bank will convert
to Fiserv’s electronic bill payment solution,
and is also migrating its EFT, debit and ATM
processing to our ACCEL/Xchange Network.
Addressing the current economy, Knight says
weathering the storm is a bit easier in his
region than in others. “A bank is a mirror of its
community,” he explains. “If you have a strong
and stable community, your bank should do just
fine. Stability is what we have here in Big Sky
Country, but with stability comes competition.
As a regional bank, we need to compete with
both the nationals and the locals, and that
requires a solid technology partner. Fiserv
continues to deliver the right solutions, just
when we need them.”
11
Bringing the Digital Branch to Life
Digital Branch to Life
Consumer and business customer expectations are transforming
the ways in which financial institutions provide services. As the
undisputed market leader in online banking and bill payment,
Fiserv is delivering digital solutions that enable our clients to
exceed their customers’ expectations.
representative, ATM or branch – customers want
a consistent experience and data access across
all channels.
Fiserv is at the forefront of this digital revolution.
Through our top-rated online banking and bill
Consumer and business customers are
payment solutions, we serve nearly 4,000
redefining their expectations around service.
financial institutions and touch more than 50
When it comes to financial services, they tell us
million households. Last year alone, this vast
that excellent personal service is not necessarily
digital footprint processed 1.3 billion bill payment
face to face. Rather, it should also include access
transactions and delivered 300 million e-bills. As
anytime, anywhere to their financial information
consumers continue to migrate to the security,
and services. The financial institutions that
control and convenience of electronic billing and
effectively utilize data integration and analytics
payment, the number of transactions will grow
to provide a more personalized set of services
as well.
across multiple delivery channels will emerge
as tomorrow’s industry leaders. Whether they
Recently, we launched Corillian Online, our
are interacting with their financial institution via
award-winning, next generation online banking,
desktop, laptop, mobile device, customer service
bill payment and financial management platform.
Corillian Online
Corillian Online from Fiserv, the next-generation online personal financial management
platform, brings the digital branch to life. It integrates industry-leading online banking and
bill payment capabilities, along with a full complement of value-added services.
Corillian Online provides a rich, user-friendly experience that enables consum-
ers to conduct nearly 70 percent of their daily financial management tasks –
banking, bill pay, balance inquiry, transfers, personal money management
and other services – from a single web page.
Corillian Online redefines the ways in which consumers interact with
their financial institution. Consumers enjoy a more personalized,
holistic experience through a streamlined and
intuitive user interface. Consumers expect their
online banking experience to be personalized
through the application of user data and past
online behavior. For the financial institution,
Corillian Online provides the capability to use
information about their customer to increase cross-
sell effectiveness through targeted communications,
Above:
Steve Shaw, Director
of Strategic Marketing,
Electronic Banking
Services, Fiserv
Below:
Erich Litch, SVP,
Sales and Strategy,
Electronic Banking
Services, Fiserv
12
Delivering a revolutionary online banking experience involves
balancing a financial institution’s desire for online channel
profitability with customers’ needs for instant, easy access to
their overall financial picture. We are building online delivery and
data analytics capabilities to help our financial institution clients
protect their investments, evolve their online banking platform
to meet their customers’ changing needs, and deliver superior
financial results.
“Online banking is no longer just about checking balances and
transferring funds,” says Steve Shaw, director of strategic
marketing, electronic banking services, Fiserv. “Now, it’s
about giving online customers – consumers and businesses
– new ways to manage their finances, and providing financial
institutions with new capabilities to deepen relationships and
enhance profitability by leveraging customer transactional data.”
marketing and personalized offerings. This ability to provide a
customized experience enables the financial provider to improve
retention and profitability by deepening account relationships.
Erich Litch, senior vice president, sales and strategy for Fiserv,
adds: “Whether online or face-to-face, consumers expect the
Proof Points
Proof Points
“ Umpqua prides itself on bringing innovation
into the customer experience, whether in
our stores or online. By partnering with
Fiserv, we’re creating a next-generation
online environment that will enable the
bank to drive greater customer acquisition,
retention and profitability through this
increasingly efficient channel.”
– Umpqua Bank, Roseburg, OR
“We are excited about offering Corillian
Online – the best online banking product
in the marketplace. This robust solution
allows us to enhance our customers’
banking experiences while improving
integration with our Fiserv account
processing solutions.”
– Union Savings Bank, Danbury, CT
“ We are engaged in rethinking how
members access their services and
communicate with us. Fiserv provides
a cornerstone for us to build new
remote services that will evolve with us.
Combining a flexible architecture with a
credit union that’s not afraid to use it – you
can’t help but stand out in the crowd.”
best experience, period. They require an online banking site
– Coastal Federal Credit Union, Raleigh, NC
where they can securely analyze, manage and control their
finances from the convenience of any online access point.
Corillian Online delivers this experience to consumers and
provides financial institutions with a platform to unlock the
profitability of their online channel.”
The online channel is the fastest growing outlet for customer
interaction as consumers become more sophisticated Internet
users. Transitioning from traditional banking at the branch to
relying exclusively on the convenience of the Internet, Fiserv’s
online banking solutions provide excellent growth opportunities
for our clients.
13
14
Keeping a Close Association
Close Association
Flexibility. Innovation. Trust. These are the key ingredients behind
our long-term partnership with Wisconsin-based Associated Bank.
We first connected with Associated Bank more
than 20 years ago when they were a $2 billion
community bank. Now, with more than $24
billion in assets, this regional bank has 300
branches in Wisconsin, Illinois and Minnesota.
This growth required a technology partner that
could handle increasing volumes and drive
expansion with innovative solutions.
Mark Quinlan, chief information officer at
Associated Bank, talks about how the features
and functionality of our solutions prove
to be an important part of their success.
“We have used a Fiserv account processing
platform for many years,” says Quinlan.
“Ultimately, it is our trusted relationship – in
addition to a variety of stable solutions – that
keeps us close.” In 2008, Associated Bank
converted its account processing platform
to Signature™ from another Fiserv solution,
which better suited their changing needs.
“The fact that Associated Bank stayed with
Fiserv speaks volumes about the technology
and innovation we bring to our clients,”
says Allan MacKinnon, senior vice president,
market development for Fiserv. “Core
conversions are a major undertaking, but
we provided a solution that will meet their
needs for years to come.”
Over a single weekend in May 2008, each
of the bank’s 300 branches converted to the
Signature account processing platform. Quinlan
labeled the conversion “incredibly smooth,”
thanks to months of planning and collaboration.
In addition to the Signature account processing
platform, the bank implemented other new
Fiserv solutions including online banking and
business intelligence. Consumer bill payment
and presentment solutions – key to consumer
retention for the bank – will be added this spring.
“ We knew we would get best-
of-breed technology and other
enhanced offerings with Fiserv.
The enhancements improved
our pricing, increased efficiency
and layered on new innovations –
letting us strengthen the
consumer experience.”
– Mark Quinlan, Associated Bank
“There is no question this change will prove
“We expanded to a point where it made
to be the right choice for our long-term growth,”
sense to convert to a platform geared toward
adds Quinlan. “It gives us greater control,
larger financial institutions, which we could
which is important. It also supplies us with
run ourselves,” says Quinlan. “We knew
innovative solutions to help us respond quickly
we would get best-of-breed technology and
to market changes. Fiserv – as it has throughout
other enhanced offerings with Fiserv. The
our long association – continues to be our
enhancements improved our pricing, increased
trusted partner.”
efficiency and layered on new innovations –
letting us strengthen the consumer experience.”
At Left:
(From left to right)
Allan MacKinnon,
SVP, Market Development,
Fiserv, talks with
Mark Quinlan, CIO,
Associated Bank
15
Capturing the Optimal Technology Solution
Optimal Technology Solution
Consumer behavior is transforming the way financial institutions
manage their deposits, with today’s remote deposit capture capabilities
enabling broader consumer demand for self-service options.
The Fiserv approach: Source Capture
Like all Fiserv solutions, our Source Capture
Optimization™, aimed at delivering the
Solutions are developed around client needs.
convenience of anytime, anywhere deposits
Gary Brand, director of channel marketing
for financial institution customers, and
for Fiserv, says, “Our Source Capture Solutions
optimizing efficiency at every touch point –
help banks retain existing customers and gain
be it the branch, teller, home office, ATM or
new ones in a challenging and dynamic
business. It’s an approach formulated from
industry. Using our advanced technology,
experience and insight gained from working
institutions can process deposits more
with a broad base of financial institutions, and
efficiently and effectively.”
an example of Fiserv 2.0 in action.
Source Capture Solutions enable financial
The concept is simple. Through a single,
institutions to grow deposits by offering faster
web-based technology platform, Source Capture
processing and added convenience for business
Solutions from Fiserv turn paper items – such as
and retail customers. These solutions can also
checks and deposit slips – into digitized images
increase transaction volume through capture
at any capture point. Why is this important?
technology which can create a virtual footprint
The volume of paper checks – about 30 billion
far beyond their office locations.
in 2008 – is declining about four percent
annually. The demand for faster, less expensive
Cost savings are a key benefit. “Financial
check processing is accelerating. We enable
institutions can consolidate processing centers,
financial institutions to succeed in today’s
reduce long teller lines and increase daily
fiercely competitive market by offering services,
float. It’s a win-win for both the bank and the
like source capture, to their customers.
consumer,” says Brand.
Our solutions employ unique “straight-through”
“Our clients definitely see the overall value
processing, putting the consumer and the
in our solutions. More than 1,500 different
branch on a fully integrated, web-based
financial institutions are now using Fiserv
platform that provides an enterprise view of
Source Capture Solutions. We expect adoption
all deposit sources and
and usage to increase dramatically over the
standardizes reporting
next three to four years,” adds Teri Carstensen,
and processing.
division president for Fiserv.
Below:
(From left to right)
Gary Brand, Director of
Channel Marketing, Fiserv;
and Teri Carstensen, Division
President, Item Processing
and Payment Solutions, Fiserv
16
Source Capture Solutions
Our single, web-based technology platform allows us
to handle deposits from multiple capture points. With
Source Capture Solutions, our financial institution
clients are able to:
• Reduce fraud. Through our single platform,
we can immediately detect if a duplicate check
is being processed.
• Grow deposits. Banks can expand their virtual
footprints, attracting and retaining depositors from
geographic areas where they don’t necessarily have
a physical location.
Proof Point
Proof Point
“ Fiserv Source Capture has improved the
banking experience for our clients by
moving the imaging function to the branch
– enabling faster clearing and reducing
the chances of encountering fraud.
At the same time, we have reduced
item-related operating costs and
redistributed the savings to improve
our overall product and service delivery.
We enjoy the highest penetration of
branch capture among our competitors,
which has helped us to achieve nearly
100 percent image clearing.”
• Preserve capital. With digitized payments, banks
– BB&T Corporation, Raleigh, NC
can reduce the unit cost of processing checks and
infrastructure investments for large check-sorting
equipment. Instead, banks can put the capital to
work in growing their business.
• Increase efficiency. Our Source Capture Solutions
reduce processing time and improve
customer satisfaction.
Chuck Doherty, VP Product Management & Business
Development, shows Joyce Ho, Product Support
Specialist, both of Fiserv, how a check can be
transformed into an image and then immediately
processed with Consumer Capture from Fiserv
17
18
Keeping the Community Connection
Community Connection
Just as we do, Lake City Bank counts on trusted relationships to
grow its business. And grow it has.
Since becoming a Fiserv client in the early
1980s, Lake City Bank of Warsaw, Indiana has
grown organically from a $143 million institution
with a handful of branches to a $2.5 billion
bank with 43 locations in 12 northern Indiana
counties. With 21 consecutive years of record
earnings, Lake City Bank has maintained its
“community bank” moniker. But that moniker
doesn’t shield it from the rigors of competition.
Engaged and helping them navigate their
markets, we are proud to be Lake City Bank’s
partner. David Findlay, EVP-Administration
and CFO for Lake City Bank, tells us why
our partnership is important to him. “We
compete every day with larger banks with
more resources,” he says. “That’s why our
Fiserv partnership is critical. Fiserv is continually
developing new products that keep us on
risk management, financial accounting and
mortgage origination processing, Lake City Bank
has recently added bill payment and revenue
enhancement solutions. In all, we provide an
integrated set of 18 solutions for the bank.
“ The consistency and reliability we
experience with Fiserv – coupled
with continued integration of new and
existing solutions – makes it easy to
add components that keep
us competitive.”
the leading edge of banking technology. The
– David Findlay, Lake City Bank
consistency and reliability we experience with
Fiserv – coupled with continued integration of
We care about their success. Amy McChesney,
new and existing solutions – makes it easy to
senior account executive and 25-year employee
add components that keep us competitive.”
tells us why. “Lake City Bank is more than
a client for us. They are our partner. We work
Mike Kubacki, chairman, president and CEO,
with them daily and are involved in their
talks about our relationship. “Our clients feel
strategic planning.”
they have found the right partner with Lake City
Bank through the comfort, familiarity and trust
Angie Ritchey, VP of operations and technology
that comes with a good banking relationship.
for Lake City Bank and current co-chair of a
Fiserv’s values mesh well with ours.”
Fiserv Client Advisory Board, sums up the Fiserv
connection this way: “In today’s world, staying
The relationship between our two companies
with a company for 25 years is not the norm.
predates the 1984 founding of Fiserv. Lake
The strengths behind our long-term relationship
City Bank began its processing operation with
are the solutions, the people and – most of all –
a software platform that later became – and
Fiserv’s commitment to our success.”
remains – a Fiserv account processing solution.
To its historic set of add-on solutions like
Above:
(From top to bottom)
Mike Kubacki, CEO; Angie
Ritchey, VP Operations and
Technology; and Lisa Fulton,
VP Operations, all of Lake
City Bank
In Photo at Left:
Amy Dalson McChesney,
Senior Account Executive,
Fiserv (far left), with David
Findlay, EVP CFO, Lake City
Bank (far right)
19
Fiserv at a Glance
at a Glance
Fiserv, Inc. (NASDAQ: FISV) is the leading global provider of information management and electronic
commerce systems for the financial services industry, driving innovation in Payments; Processing Services;
Risk and Compliance; Customer and Channel Management; and Business Intelligence and Optimization.
As we celebrate our 25th year, we are leading the transformation of financial services technology to help
our clients change the way financial services are delivered. We’re delivering more innovation and more
integration – all to help our clients grow their businesses and increase profitability.
Financial
Financial
Institution
Institution
Services
Services
(53% of revenue)
(53% of revenue)
Lending
Item
Processing
9%
8%
Payments
and Industry
Products
(47% of revenue)
Account
Processing
& Other
36%
31%
8%
8%
Payments
Output Solutions
Risk & Investment
Market Reach
Market Reach
Financial Institution Services
Payments and Industry Products
• Market leader in account processing
• Leading provider of bill payment and
services in U.S. with nearly 6,000 clients
presentment services
• Relationships with the top 50 U.S. banking
• Nearly 1.3 billion online bill pay transactions
institutions and 99 of the top 100
processed through financial institutions,
• Largest independent U.S. check processor,
brokerage firms or portals
handling one out of every 10 checks written
• More than 3,000 total bill pay clients
• Provider of network clearing services to
• More than 3,000 biller relationships
800 client institutions through the Fiserv
• Leading Internet banking services provider,
Clearing Network
serving nearly 4,000 client institutions
• Approximately six billion ATM/debit
card transactions processed
• Delivered 300 million e-bills
20
Client Solutions
Client Solutions
Fiserv offers an unmatched array of innovative
solutions that are supported by the highest
quality client service. Our comprehensive
set of solutions gives Fiserv the ability to provide
next-generation products and services to our
clients. Account and transaction processing,
payment processing, risk management, compliance,
business intelligence, business optimization and
mobile banking are counted among our collection
of market-leading, award-winning solutions.
16,000 Clients Served
16,000 Clients Served
• Financial institutions: banks, credit unions and thrifts
• Mortgage lenders and leasing companies
• Telecommunication and utility companies
• Brokerage and investment firms
• Healthcare and insurance providers
• Retail establishments
• Municipalities
Largest
Client
5%
17%
Next 49
Financial
Institution
Clients
Percent of
Percent of
Total Revenue
Total Revenue
by Client
by Client
78%
All Other
Clients
Proof Points
Proof Points
Number One
on the FinTech 100 Survey of
Top Technology Companies by
American Banker and Financial Insights, Inc.
Number One
Online Banking provider for three
consecutive years by Celent
Number One
for Branch and Teller Source Capture
Solutions by Aite Group
Top Ranked Company
on “The Innovators” listing provided by
BankTechnology News
First
in the Bank and Financial Services
industry category on the
InformationWeek 500 listing
Top Ten
in the Chartis RiskTech 100 Report
Fortune 500
468 on this prestigious ranking
of top U.S. companies
Best of Show
for our Online Banking solution at
Finovate 2008
21
Consolidated
Statements of Income
Income
In millions, except per share data
Years ended December 31,
Revenues:
Processing and services
Product
Total Revenues
Expenses:
Cost of processing and services
Cost of product
Selling, general and administrative
Total Expenses
Operating Income
Interest expense
Interest income
Loss on sale of businesses
Income from continuing operations before income taxes
and income from investment in unconsolidated affiliate
Income tax provision
Income from investment in unconsolidated affiliate,
net of income taxes
Income from continuing operations
Income from discontinued operations, net of income taxes
2008
2007
2006
$ 3,616
1,123
4,739
2,099
917
833
3,849
890
(
260 )
13
(24 )
619
(279 )
6
346
223
$ 2,668
1,229
3,897
1,639
979
540
3,158
739
(76 )
7
–
670
(256 )
–
414
25
$ 2,466
1,078
3,544
1,573
839
465
2,877
667
(41 )
–
–
626
(236 )
–
390
60
Net Income
$
569
$
439
$
450
Net income per share - basic:
Continuing operations
Discontinued operations
Total
Net income per share - diluted:
Continuing operations
Discontinued operations
Total
Shares used in computing net income per share:
Basic
Diluted
$ 2.14
1.37
$ 3.51
$ 2.12
1.36
$ 3.49
162.0
163.1
$ 2.48
0.15
$ 2.64
$ 2.45
0.15
$ 2.60
166.6
168.8
$ 2.23
0.34
$ 2.57
$ 2.20
0.34
$ 2.53
175.0
177.5
Note: Our Annual Report on Form 10-K, which includes Management’s Discussion and Analysis, Financial Statements and related Footnotes, is available online
under “For Investors” on our website, www.fiserv.com.
22
Consolidated
Statements of Cash Flows
Cash Flows
In millions
Years ended December 31,
Cash Flows from Operating Activities:
Net income
Adjustment for discontinued operations
Adjustments to reconcile net income to net cash provided by
operating activities:
Deferred income taxes
Share-based compensation
Excess tax benefit from exercise of stock options
Loss on sale of businesses
Income from investment in unconsolidated affiliate
Settlement of interest rate hedge contracts
Amortization of acquisition-related intangible assets
Depreciation and other amortization
Changes in assets and liabilities, net of effects from
acquisitions and dispositions:
Trade accounts receivable
Prepaid expenses and other assets
Trade accounts payable and other liabilities
Deferred revenues
Net cash provided by operating activities
Cash Flows from Investing Activities:
(
4 )
34
(2 )
24
(6 )
–
158
204
(27 )
(7 )
44
11
775
Capital expenditures, including capitalization of software costs
(
199 )
Payment for acquisitions of businesses, net of cash acquired
Proceeds from sale of businesses, net of cash sold and expenses paid
Other investing activities
Net cash provided by (used in) investing activities
(85 )
498
(8)
206
Cash Flows from Financing Activities:
(Repayments of) proceeds from revolving credit facility, net
(
740 )
Repayments of long-term debt
Proceeds from long-term debt
Issuance of stock for employee stock plans
Purchases of treasury stock
Excess tax benefit from exercise of stock options
Deferred financing costs
Other financing activities
(563 )
–
37
(441 )
2
(1 )
7 )
(
2008
2007
2006
$
569
(223 )
$
439
(25 )
$
450
(60 )
20
23
(12 )
–
–
(30 )
39
147
(35 )
(32 )
23
8
565
(156 )
(4,333 )
–
19
(4,470 )
285
(71 )
4,248
50
(469 )
12
(24 )
(7 )
14
26
(10 )
–
–
–
24
143
(54 )
(13 )
11
10
541
(160 )
(187 )
–
(1 )
(348 )
144
(16 )
10
36
(560 )
10
–
3
(373 )
(180 )
150
146
Net cash (used in) provided by financing activities
(1,713 )
4,024
Net change in cash and cash equivalents
Net cash transactions transferred from discontinued operations
Beginning balance
Ending balance
(732)
667
297
119
62
116
$
232
$
297
$
116
NOTe: Cash flows from discontinued operations are excluded from the above statements of cash flows. Our Annual Report on Form 10-K, which includes
Management’s Discussion and Analysis, Financial Statements and related Footnotes, is available online under “For Investors” on our website, www.fiserv.com.
23
Consolidated
Balance Sheets
Balance Sheets
In millions
December 31,
Assets
Cash and cash equivalents
Trade accounts receivable, less allowance for doubtful accounts
Deferred income taxes
Prepaid expenses and other current assets
Assets of discontinued operations held for sale
Total Current Assets
Property and equipment, net
Intangible assets, net
Goodwill
Other long-term assets
Total Assets
Liabilities and Shareholders’ Equity
Trade accounts payable
Accrued expenses
Deferred revenues
Current maturities of long-term debt
Liabilities of discontinued operations held for sale
Total Current Liabilities
Long-term debt
Deferred income taxes
Other long-term liabilities
Total Liabilities
Shareholders’ Equity
Total Liabilities and Shareholders’ Equity
2008
2007
$ 232
$
297
601
71
295
946
2,145
303
2,121
4,409
353
$ 9,331
836
71
353
2,683
4,240
370
2,299
4,808
129
$ 11,846
$ 101
$
522
338
255
831
2,047
3,850
530
310
6,737
2,594
$ 9,331
181
597
351
510
2,112
3,751
4,895
574
159
9,379
2,467
$ 11,846
Note: Our Annual Report on Form 10-K, which includes Management’s Discussion and Analysis, Financial Statements and related Footnotes, is available online
under “For Investors” on our website, www.fiserv.com.
Forward-looking Statements and Non-GAAP Financial Measures
This report contains forward-looking statements that are subject to significant
risks and uncertainties. Forward-looking statements include those that express
a plan, belief, expectation, estimation, anticipation, intent, contingency, future
development, objective, goal or similar expression, and can generally be
identified as forward-looking because they include words such as “believes,”
“anticipates,” “expects,” “could,” “should” or words of similar meaning.
For more information about forward-looking statements and the factors that
could cause actual results to differ materially from our current expectations,
you should refer to our Annual Report on Form 10-K for the year ended
December 31, 2008.
“Adjusted earnings per share from continuing operations” and “adjusted
income from continuing operations” exclude amortization of acquisition-related
intangible assets ($0.60 per share, $0.14 per share, $0.08 per share and $0.07
per share in 2008, 2007, 2006 and 2005, respectively) and exclude an after-tax
loss on the sale of businesses of $57 million ($0.35 per share) in 2008. 2008
and 2007 exclude merger related costs associated with our acquisition of
CheckFree totaling $59 million ($0.22 per share) and $13 million ($0.05 per
share), respectively. 2007 and 2006 exclude charges totaling $7 million ($0.03
per share) and $9 million ($0.03 per share), respectively, related to employee
severance and facility shutdown expenses. 2005 excludes a pre-tax gain of $87
million ($0.29 per share) from the sale of two investments and the receipt of
a $26 million ($0.09 per share) contract termination fee and includes the pro
forma impact of SFAS 123R for share-based compensation of $0.10 per share.
“Adjusted operating margin” excludes: revenues ($513 million, $804 million
and $706 million in 2008, 2007 and 2006, respectively) and operating income
($44 million, $78 million and $110 million in 2008, 2007 and 2006, respectively)
for Fiserv Insurance which we have sold our majority interest in; customer
reimbursements of $203 million, $158 million and $132 million in 2008, 2007
and 2006, respectively, which are included in both revenues and expenses;
amortization of acquisition-related intangible assets of $158 million, $39 million
and $24 million in 2008, 2007 and 2006, respectively; and charges of $59 million,
$18 million and $9 million in 2008, 2007 and 2006, respectively, primarily for
merger related costs and restructuring expenses.
“Free cash flow” represents net cash provided by operating activities less
capital expenditures, plus non-recurring payments totaling $35 million and
$34 million in 2008 and 2007, respectively, related to after-tax merger costs
and one-time liabilities assumed on the opening balance sheets of acquired
companies. “Free cash flow per share” represents “free cash flow” divided
by diluted shares outstanding during the year.
All third party trademarks are the property of their respective owners.
24
Financial Highlights
$5
$5
$5
$5
$600
$4.7
$600
$600
$600
$4.00
$537
$4.00
$4.00
$4.00
$4.00
$4.00
$3.75
$4.00
$4.00
(In millions, except per share and stock price data)
2008
2007
2006
2005
Revenues
Adjusted income
Adjusted earnings per share
Cash flow from operations
Free cash flow
Free cash flow per share
Stock price
Average share count
$ 4,739
$ 3,897
$ 3,544
$ 3,229
537
3.29
775
611
3.75
450
2.67
565
443
2.62
410
2.31
541
381
2.15
379
1.98
526
385
2.02
36.37
163.1
55.49
168.8
52.42
177.5
43.27
191.0
4
3
2
1
0
4
3
2
1
0
4
3
2
1
0
4
3
2
1
0
05
06
07
08
05
06
07
05
08
06
07
08
05
500
400
300
200
100
0
06
500
400
300
200
100
0
500
400
300
200
100
0
$3.29
3.00
3.00
3.00
3.00
3.00
3.00
3.00
3.00
500
400
300
2.00
2.00
2.00
2.00
2.00
2.00
2.00
2.00
200
100
1.00
1.00
1.00
1.00
1.00
1.00
1.00
1.00
* Adjusted income, adjusted earnings per share, free cash flow and free cash flow per share are non-GAAP financial measures. See page 24 for additional
information about these non-GAAP financial measures. All results are derived from continuing operations and exclude discontinued operations.
Revenues
(in billions)
Adjusted income
(in millions)
Adjusted earnings
per share
Free cash flow
per share
Revenues
Revenues
Revenues
Revenues
Adjusted
Income
Adjusted
Income
Adjusted
Income
Adjusted
Income
Adjusted
Earnings
Adjusted
Earnings
Adjusted
Earnings
Adjusted
Earnings
Free Cash
Flow/Share
Free Cash
Flow/Share
Free Cash
Flow/Share
Free Cash
Flow/Share
05
07
06
08
07
08
05
06
07
05
08
06
07
08
05
06
05
07
06
08
0
0.00
0.00
07
08
05
06
0.00
07
05
08
06
0.00
07
0.00
05
08
06
05
07
06
08
0.00
07
08
05
06
0.00
07
05
08
06
0.00
07
08
05
06
07
08
Corporate Information
Board of Directors
Donald F. Dillon
Chairman of the Board
Operating Committee
Jeffery W. Yabuki
President and Chief Executive Officer
Directors
Daniel P. Kearney
Peter J. Kight
Gerald J. Levy
Denis J. O’Leary
Glenn M. Renwick
Kim M. Robak
Doyle R. Simons
Thomas C. Wertheimer
Jeffery W. Yabuki
Peter J. Kight
Vice Chairman
James W. Cox
Executive Vice President,
Corporate Development
Douglas J. Craft
Executive Vice President,
Depository Institution Services
Bridie A. Fanning
Executive Vice President,
Human Resources
Rahul Gupta
Executive Vice President,
Card Services
Stephen E. Olsen
Group President,
Depository Institution Services
Charles W. Sprague
Executive Vice President,
General Counsel and Secretary
Murray C. Walton
Senior Vice President,
Chief Risk Officer
Thomas W. Warsop, III
Group President,
Financial Institution Services
Thomas J. Hirsch
Executive Vice President,
Chief Financial Officer and
Treasurer
Richard K. Jones
Executive Vice President,
Chief Information Officer
Donald J. MacDonald
Executive Vice President,
Chief Marketing Officer
Daniel F. Murphy
Senior Vice President,
Director of Corporate Audit
Thomas A. Neill
Executive Vice President,
Depository Institution Services
Our Leadership
Our Leadership
Fiserv opens The
NASDAQ Stock Market
in honor of its
25th anniversary and
new brand launch
Corporate Headquarters
Fiserv, Inc.
Shareholder Information
Copies of the company’s annual,
255 Fiserv Drive
Brookfield, WI 53045
(262) 879-5000
Websites
www.fiserv.com
www.newfiserv.com
quarterly and current reports,
as filed with the Securities and
Exchange Commission, are
available on request from the company.
Visit our website, www.fiserv.com,
for updated news releases, stock
performance, financial reports,
conference call webcast, SEC filings,
Investor Relations
(800) 425-FISV
corporate governance and
other investor information.
Stock Listing and Symbol
NASDAQ Global Select Market
Symbol: FISV
Shareholders’ Meeting
The 2009 Annual Meeting of
Shareholders will be held on
Wednesday, May 20, 2009
Independent Registered
Public Accounting Firm
Deloitte & Touche LLP
Milwaukee, Wisconsin
Transfer Agent
Computershare Trust Company, N.A.
P.O. Box 43069
at 10:00 a.m. Central Time
Providence, RI 02940-3069
at the Fiserv Corporate
(800) 446-2617
Headquarters, 255 Fiserv Drive,
www.computershare.com
Brookfield, Wisconsin.
2008 Summary Annual Report
The Power Within.
Corporate Headquarters
255 Fiserv Drive
Brookfield, WI 53045
Phone: 262-879-5000
Toll Free: 800-872-7882
general_info@fiserv.com
www.fiserv.com
Fiserv is a registered trademark of Fiserv, Inc.
All product and brand names mentioned are property of their respective companies.
©2009 Fiserv, Inc. All rights reserved.