EX-99.1 2 ex99-1.htm EXHIBIT 99.1 ex99-1.htm

 
© Copyright 2010, Fundtech Ltd. All Rights Reserved.
Fundtech Investor Presentation
February 2011
 
 

 
© Copyright 2010, Fundtech Ltd. All Rights Reserved.
Safe Harbor Language
This presentation contains forward-looking statements made pursuant to the safe harbor
provisions of the Private Securities Litigation Reform Act of 1995. Such statements may
include, but are not limited to, projections of revenues, income or loss, capital expenditures,
plans for growth and future operations, competition and regulation. Forward-looking
statements are inherently subject to risks and uncertainties, many of which cannot be
predicted or quantified. When used in this Release, the words, "estimates," "expects,"
"anticipates," "believes," "plans," "intends," and variations of such words and similar
expressions are intended to identify forward-looking statements that involve risks and
uncertainties. Future events and actual results could differ materially from those set forth in,
contemplated by or underlying the forward-looking statements. The factors that could cause
actual results to differ materially from those discussed or identified from time to time in
Fundtech's public filings, including its Annual Report on Form 20-F for the year ended
December 31, 2009, including general economic and market conditions, changes in
regulations and taxes and changes in competition in pricing environment. Undue reliance
should not be placed on these forward-looking statements, which are applicable only as of the
date hereof. Fundtech undertakes no obligation to revise or update these forward-looking
statements to reflect events or circumstances that arise after the date of this presentation or
to reflect the occurrence of unanticipated events.
 
 

 
© Copyright 2010, Fundtech Ltd. All Rights Reserved.
 Fundtech provides non-GAAP operating results as a supplement to its GAAP financial results. The
presentation of this information should not be considered in isolation to, or as a substitute for the
financial results presented in accordance with GAAP. Management believes that non-GAAP financial
measures are useful to investors because they allow for an evaluation of Fundtech with a focus on
the performance of its core operations.
 Fundtech’s executive management team uses these same non-GAAP measures internally to assess
the ongoing performance of the company. Since this information is not a GAAP measurement of
financial performance, there are material limitations to its usefulness on a stand-alone basis,
including the lack of comparability of this presentation to the GAAP financial results of other
companies.
 We are presenting Fundtech’s non-GAAP net income as well as Adjusted EBITDA. We define non-
GAAP net income as net income plus stock-based compensation, amortization of intangibles,
impairment of goodwill and other intangible assets, impairment of marketable securities, and
deferred taxes. We define Adjusted EBITDA as net income plus stock-based compensation,
depreciation and amortization expenses, impairment of marketable securities, deferred and current
taxes, and interest expense (income).
 A detailed reconciliation of GAAP net income to non-GAAP net income and Adjusted EBITDA is
included in the attached Slide 27.
  
Reconciliation of GAAP Results
to Non-GAAP Results
 
 

 
© Copyright 2010, Fundtech Ltd. All Rights Reserved.
Fact Sheet
§ The leading Provider of Transaction Banking Software:
 Payments, Financial Messaging, Cash Management and EIPP
§ Market focus on banking industry
§ Software is available both as an ”In-House” and ASP model
§ Provide services and solutions to over 1000 banks in 70
 countries
§ Traded in NASDAQ since 1998 <symbol FNDT>
 
 

 
© Copyright 2010, Fundtech Ltd. All Rights Reserved.
Fundtech’s Operations
1172 Employees & Consultants
By Geography
By Function
Geography - 16 locations, 4 continents
3 ASP Data Centers
16 offices
Headcount Summary
Staffing Profile
North America
285
Solutions
226
FT India
382
Fundtech UK
83
BBP/Prang
117
Corp
79
Total:
1172
London     Zurich   Geneva   Frankfurt
Boston
San
Francisco
Australia
Pune
Singapore
Tokyo
Atlanta
New Jersey
Tel Aviv
Los Angeles
Wales
N’ham
 
 

 
© Copyright 2010, Fundtech Ltd. All Rights Reserved.
Maintenance
30%
Professional Services
37%
License
12%
Managed Services
(Hosting)
21%
Revenue Breakdown - 2010
Revenue
Fundtech’s Financial Overview
Other Information
  Strong recurring revenue base, over 50%
  Cash, equivalents and marketable securities on
 December 31, 2010 - $54 million
   No bank debt
  Adjusted EBITDA for 2010 $23.7M
EPS in cents
 
 

 
© Copyright 2010, Fundtech Ltd. All Rights Reserved.
Fundtech’s Clients
§ 1000+ Bank Customers
§ 300 of top 500 banks in the US
  8 out of top 10 Banks worldwide
  6 out of top 10 US banks
 
 

 
© Copyright 2010, Fundtech Ltd. All Rights Reserved.
Slight
Increase
Significant
Increase
4%
No Impact
Source: Aite Group 2010
Bankers Say Treasury Services
Have Become More Important
to Their Bank
Transaction Banking - Core Strength
§ Transaction Banking was the most stable
 business for banks during the financial crisis
§ Size of the Market (Revenue to Banks)
  $480b industry
  Represents about 30%-35% of total bank
 revenue
§ Profitability
  Among top 10 global banks Transaction
 Banking has a profit margin of about 35%
 over the past 4 year
§ Growth
  Transaction Banking is growing at about
 10% annually
Source: Celent
 
 

 
© Copyright 2010, Fundtech Ltd. All Rights Reserved.
Fundtech’s Solutions
Cash Management
  Bank Reports
  Fund Transfer
  Commercial Loans
  Online Checking
  Payroll
  EIPP
Payments
  Accounting
  AML
  F/X Management
  Billing
  Balance checking
  Advising
  Routing
Financial Messaging
  Communication Protocols
  Mapping
  Routing
  Validations
  Prioritization
  SWIFT Connectivity
Up by 25% in 2010
Up by 22% in 2010
Up by 14% in 2010
 
 

 
© Copyright 2010, Fundtech Ltd. All Rights Reserved.
Fundtech’s Domain
  Our technology is a web-based payment factory implemented on open
 technology, providing global financial institutions with distributed access to, and
 centralized control of their payments operations worldwide
Financial Networks Clearing
and Settlement Organizations
Suppliers & Customers
Bank Operations & Branches
London
Hong Kong
New York
Geneva
Prague
Payment operations
Payment engine
Core Banking System
Front-Office
Back-/Middle-Office
 
 

 
© Copyright 2010, Fundtech Ltd. All Rights Reserved.
CASHplus SmartNav 
 
 

 
© Copyright 2010, Fundtech Ltd. All Rights Reserved.
Mobile Banking for Corporates
Christine Barry
 
 

 
© Copyright 2010, Fundtech Ltd. All Rights Reserved.
Fundtech's Advantages
§ Trusted Partner
  Highly experienced software solution provider- Market leader
 in the Market for Global Payment Systems.
  Offers wide variety of products
§ Technology
  SOA technology with global internet based access
  Secure, scalable and fault tolerant
§ Advanced Features
  Global settlement and liquidity management
  Highest STP (automation) rate in the market
  AI - Advanced rules-based design
 
 

 
© Copyright 2010, Fundtech Ltd. All Rights Reserved.
Industry Recognition
 
 

 
© Copyright 2010, Fundtech Ltd. All Rights Reserved.
Competitive Landscape - Source Celent
 
 

 
© Copyright 2010, Fundtech Ltd. All Rights Reserved.
Fundtech’s positioning in the
payment services hubs market
is an impressive combination of
experience and agility.
Clients praised Fundtech’s deep payments and banking
knowledge, willingness to work in a true partnership style,
ability to quickly learn to operate in a large complex client
environment and commitment and attention of senior
company’s executives. According to one interviewee,
working with Fundtech was “a pleasure.”
Quotes from 2010 Celent report
Not only Fundtech provided
excellent references, their
willingness to do so was second
to none.
Fundtech deserves a special mention for its efforts
to modernise its technology. Fundtech has a strong
“legacy” payments engine; however, with the latest
release of Global PayPlus, Services Platform,
Fundtech has successfully transitioned from the
monolithic “do-it-all” application model to an open,
services based architecture.
 
 

 
© Copyright 2010, Fundtech Ltd. All Rights Reserved.
2011 Strategic Direction
§ Market Leadership
  Strengthen our position as the leading vendor in all areas of
 the transaction banking market
  Continue Investment In Leading Edge Technology
  Leverage our SOA technology for other products
§ Penetrating New Markets
  Create operations in China
  Start selling activities in South America (Brazil, Chile)
  Deploy Global Services in the US
§ Growth Through Acquisition
  Continue Acquiring solutions that has high synergy with our
 business that can create immediate profitability
 
 

 
© Copyright 2010, Fundtech Ltd. All Rights Reserved.

Financial Presentation
 
 

 
© Copyright 2010, Fundtech Ltd. All Rights Reserved.
Revenue Trends
19
 
 

 
© Copyright 2010, Fundtech Ltd. All Rights Reserved.
2009
 
 

 
© Copyright 2010, Fundtech Ltd. All Rights Reserved.
Q4 2010 Results - Record Revenues &
Profitability
§ Revenues of $37.8M, 15% year-over-year organic growth and 5%
 sequential growth
§ Operating Profit of $3.9M in vs. $2.4M in Q4 2009 and $3.6 in
 Q3 2010
§ Adjusted Operating Profit of $5M in vs. $3.6M in Q4 2009 and
 4.7 in Q3 2010(excluding amortization of intangibles and stock
 based compensation)
§ GAAP EPS of $0.37 vs. $0.21 in Q4 2009 and $0.19 in Q3 2010
§ Non-GAAP EPS of $0.29 vs. $0.21 in Q4 2009 and $0.26 in Q3
 2010
 
 

 
© Copyright 2010, Fundtech Ltd. All Rights Reserved.
§ Revenue of $141.9M, organic growth of 20%
§ Net profit of $12.5M, $2.1M deferred taxes (income) included
§ GAAP EPS of 79 cents
§ Non-GAAP EPS of 93 cents
§ We have performed share buy back of 658,000 shares in a total
 sum of $9M
§ Cash and equivalents are up by $11.1M
2010 Summary
 
 

 
© Copyright 2010, Fundtech Ltd. All Rights Reserved.
Cash & Equivalents  53.2 56.6
Other Current Assets  40.7  36.2
Total Current Assets  93.9  92.8  
Marketable Securities LT  0.8 0.7
Other Assets  62.7 63.5    
Total Assets  157.4 157.0
Current Liabilities 33.5  38.2  
Long Term Liabilities  8.4 7.2
Shareholders’ Equity  115.5 111.6  
Liabilities & Equity  157.4  157.0
   
Balance Sheet
12/31/10
9/30/10
($ Millions)
 
 

 
© Copyright 2010, Fundtech Ltd. All Rights Reserved.
§ Since Q4 2008 Fundtech purchased 1.623 ordinary shares in
 consideration for $18.2M (average price of $11.21)
§ Of the latest $15M approved by courts $2.4M were utilized in Q4
 2010
§ Board decided on a quarterly dividend of $0.10 for 2011
§ Fundtech will apply for court approval and will pay first dividend
 payment in Q2 subject to receiving court approvals
§ The dividend amount is expected to be approx. $1.6M per
 quarter.
Share Buy Back and Dividends
 
 

 
© Copyright 2010, Fundtech Ltd. All Rights Reserved.
Revenue Visibility
Licenses
8%
 
 

 
© Copyright 2010, Fundtech Ltd. All Rights Reserved.
Guidance for Q1 2011
§ Revenues between $36 million and $37 million
§ GAAP EPS $0.10 to $0.14
§ Non GAAP EPS $0.17 to $0.21
§ Interest income of $0.00
§ Current tax expense of $600,000
§ Stock based compensation of $750,000
§ Amortization of intangibles expense of $350,000
§ Shares used in EPS calculation of 16 million
*Guidance does not include deferred taxes and one time write off of intangibles
 
 

 
© Copyright 2010, Fundtech Ltd. All Rights Reserved.
Guidance for 2011
*Guidance does not include deferred taxes and one time write off of intangibles
  Revenues between $154 million and $159 million
  GAAP EPS $0.73 to $0.83
  Non GAAP EPS $1 to $1.10
  Interest income of $0.00
  Current tax expense of $2.5 million
  Stock based compensation of $3 million
  Amortization of intangibles expense of $1.4 million
  Shares used in EPS calculation of 16 million
 
 

 
© Copyright 2010, Fundtech Ltd. All Rights Reserved.
Reconciliation from GAAP
(in Thousands, Except Share and Per Share Data)
 
 

 

Thank You