avatar Fidelity National Information Services, Inc. Services
  • Location: Florida 
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    EMPOWERING THE FINANCIAL WORLD 2018 ANNUAL REPORT


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    EMPOWERING It’s no coincidence that there’s a “WE” in EMPOWERING. When our clients succeed, we succeed. We make the complex simpler. We translate global expertise to a local level. We advance a risk-averse industry with a mix SJSTIVEXMSREPIǽGMIRG]ERHMRRSZEXMSRXSQSHIVRM^I for the future. That’s what we do every day for FIS clients around the globe. When we empower our clients with expertise, technology and tools to advance, they focus on their priorities, grow QSVIGSRǻHIRXERHXSKIXLIVwe move ahead.


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    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. For more information about FIS, visit www.fisglobal.com. facebook.com/FIStoday @FISGlobal 1 FIS ANNUAL REPORT 2018


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    To Our Valued Shareholders I am pleased to report another year of shareholder Overall, in what was a challenging year for the stock value creation, business growth and marketplace market, we delivered total shareholder return of success for FIS in 2018. 10 percent, outperforming more than 75 percent of S&P 500 companies. Signaling its continued In our 50th anniversary confidence in our strategy and execution, the FIS Board of Directors recently approved a nine percent year as a company, increase in our quarterly dividend. we demonstrated the power of our business Consistent Performance in a model to deliver consistent, predictable Rapidly Changing Industry financial results and sustainable value for our shareholders. Our long-term growth strategy is producing these consistent results and performance in an industry that ADJUSTED REVENUE GREW is changing at a constantly multiplying rate. 3% TO $8.4 billion We are in the midst of a fourth industrial revolution which moves beyond mere automation of business driven by demand for our modern banking, wealth and processes to the mass adoption of digitally-enabled payment solutions. technologies across every facet of our lives. Driven by the need for greater speed and flexibility, ADJUSTED EARNINGS PER SHARE GREW SVKERM^EXMSRWEVIMRGVIEWMRKP]WLMJXMRKJVSQGSQTPI\ on premises solution implementations to hosted, 22% TO $5.23 cloud-based models accessing the technology they need to serve today’s consumers. exceeding our targets for the year. Consumer expectations and preferences have WE GENERATED FREE CASH FLOW OF changed. Today’s consumers expect their financial services relationships to provide the same convenient $1.5 billion and easy experience they get when shopping online, LEMPMRKEGEVVMHISVSVHIVMRKETM^^E8LI]EVI[MPPMRK to use alternative methods for managing aspects of WHILE RETURNING their financial lives if those new channels meet their $1.6 billion expectations for a fast, seamless, intuitive experience. For our clients – the banks, credit unions, payments to shareholders through share repurchases and dividends. providers, merchants, broker-dealers, asset and wealth managers, and corporates that serve this We saw exceptional margin expansion new breed of digital-savvy customers – these trends driven by our focus on value-add, software- bring both opportunity and threats. The opportunity based solutions and our ongoing work to comes from being freed from the bounds of a drive efficiencies throughout our physical location to cost-efficiently reach and serve global operations. new customers beyond their traditional footprint. The threats come from new fintech providers that are disrupting established channels and eating away at their core business. FIS ANNUAL REPORT 2018 2


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    'I]SRHXLIGSQTIXMXMZIXLVIEXWJMRERGMEPWIVZMGIWSVKERM^EXMSRWEVIEPWSJEGMRKMRGVIEWIH regulatory requirements and cyber security risks. They need to use data more effectively to grow their business, improve decision-making and combat fraud, while also simultaneously reducing costs and driving operational efficiencies. All of these trends have heightened the YVKIRG]XSHMKMXM^IERHQSHIVRM^IXLIMVSTIVEXMSRWXSGSQTIXIIJJIGXMZIP]MRXLMWVETMHP] changing environment. Taking Our Clients into the Future For FIS, this is our opportunity. We strive to be the strategic technology partner that will XEOISYVGPMIRXWSRXLMWNSYVRI]SJQSHIVRM^EXMSRMRXSXLIJYXYVI.XMW[L][IEVIMRZIWXMRKWS heavily in next-generation technology, tools, and talent. It is why we are building a world- class delivery network for deploying solutions on-demand through the cloud. From our solutions and enabling technologies to our customer service and delivery model, [IEVIXVERWJSVQMRKIZIV]EWTIGXSJLS[[IWIVZIGPMIRXWƳEPPXSLIPTXLIQQSHIVRM^I and be successful in this new landscape, while driving continued growth and value for our shareholders. FIS today continues investing in developing and bringing to market leading-edge digital solutions that will take our clients into the future OUR NEXT GENERATION SOLUTIONS BUILT ON AN HUMAN- OPEN, SCALABLE CENTERED – ARCHITECTURE – Embracing Giving our clients modern design the flexibility to $ and development securely scale their methods to create mission-critical MODULAR – PROVIDE A intuitive, best- applications to Making use of UNIFIED CLIENT in-class user take advantage component-based EXPERIENCE – experiences. of business technology and Delivering opportunities open application CLOUD-READY – seamless, end- and grow programming Leveraging to-end integration interfaces (APIs) to the speed and of services and speed deployment efficiency of the functionality across of innovative cloud to deliver disparate systems new services for innovations quickly customers and cost-effectively to our clients around the world 3 FIS ANNUAL REPORT 2018


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    The work we are doing to strengthen and enhance our portfolio is yielding breakthrough innovations such as: ● FIS Code Connect, our rapidly growing gateway of open banking APIs that was recently named by Aite Group as the most advanced in the industry ● Our next-generation omnichannel banking platform FIS Digital United and FIS Digital 4RIEPWSVIGSKRM^IHEWEPIEHIVF].)([LMGLIREFPIFEROWXSTVSZMHIEHZERGIHHMKMXEP services seamlessly across multiple channels ● Our direct-to-consumer banking solutions, which are successfully being used by many leading banks in the industry to grow their deposit base ● Our Unified Payments solution, which brings together retail, enterprise, merchant and card payments in an integrated hosted service ● Our next-generation global trading system, which provides traders with a holistic view of multi-asset, multi-currency portfolios and enables them to conduct critical risk scenarios in real time In addition to our portfolio, we are transforming the way we deliver solutions to clients. By the end of 2019, we expect to 50% By consolidating and cloud- increase that percentage to enabling our global data centers, we have been able to shift more than of our application workload in North America to a secure cloud environment. 65% globally. In addition to reducing our annual costs by more than $100 million last year, this initiative is yielding significant benefits to our clients in speed of delivery, performance, and resiliency. As part of our long-term strategy, we also continue to hone our business model around our focused growth businesses and markets. In 2018, we sold our Chinese Kingstar and U.S. Certegy Check Services businesses, completing a multi-year program to divest non-core businesses. In Latin America, we exited a previous joint venture with Banco Bradesco while IWXEFPMWLMRKERI[GSQQIVGMEPVIPEXMSRWLMT[MXLXLMWPIEHMRK'VE^MPMERFEROXSTVSZMHIMX[MXL a broader range of solutions and services. The new arrangement gives us greater flexibility to grow our long-term presence in this strategically important market. The Future Is Now 4YVZMWMSRSJQSHIVRM^EXMSRGSQIWXSJVYMXMSRMRXLIVIEP[SVPH[SVO[IHS[MXLSYVGPMIRXW Around the world, FIS people are working side-by-side with our clients and partners on projects that take advantage of the power of emerging technologies such as artificial intelligence, natural language processing, robotics process automation, and blockchain. 'IGEYWISJSYVKPSFEPWGEPIERHHITXLSJI\TIVMIRGI[IGERLIPTSVKERM^EXMSRWPEVKI and small seamlessly blend the old and the new in ways that provide breakthrough improvements while protecting existing investments. FIS ANNUAL REPORT 2018 4


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    Consider just a few of the exciting projects that we are engaged in around the world: In the U.S., we worked with Citizens Bank to launch its direct bank Citizens Access, which in just 18 months has attracted more than $2 billion in deposits and enabling the bank to reach thousands of new customers; In Europe, we enabled Natixis Payments to become the first French institution to take advantage of that country’s emerging instant payments and settlement scheme; In Asia, we are helping Union Bank of Philippines digitize and modernize its commercial lending processes by taking advantage of the power of open banking APIs; In the Middle East, we enabled a leading Saudi Arabia-based bank to connect into the emerging Ripple inter-bank settlement service that uses blockchain technology to speed and streamline cross-border payments; We are helping the U.S. arm of one of the world’s largest derivatives broker-dealers modernize its securities processing systems and gain a holistic, real-time view of its data and operations. Working with The Clearing House, central banks, and other payments providers, FIS is helping to modernize the world’s payments infrastructure on the rails of a next-generation payments system that moves money in real-time; Investing in a Workforce of the Future To deliver our vision of the future, we need a workforce of the future, which is why FIS is investing heavily in building and developing our pipeline of talent. I frequently tell our clients and partners that FIS has the most talented, committed, knowledgeable workforce in the industry, and I truly believe that our more than 47,000 employees around the world are passionate about helping our clients apply modern financial technologies to achieve their business goals. They are change agents, problem solvers, innovators, collaborators and client champions. To drive our continued growth, we are making significant investments in talent management, tools, and training to ensure that we have the skills that we and our clients need to succeed in this rapidly changing market. We value diversity in our workforce, our leadership and our Board to bring a mix of backgrounds, abilities, and perspectives to the work we do. Our clients benefit. The market benefits. Our shareholders benefit. In the year ahead, the people of FIS are focused on executing our strategy to drive continued growth and shareholder returns. We are excited about our future prospects and hope you are as well. Thank you for your support and confidence, and I look forward to reporting on our continued progress in 2019. Sincerely, Gary Norcross Chairman, President and Chief Executive Officer 5 FIS ANNUAL REPORT 2018


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     Unless stated otherwise or the context otherwise requires, all references to "FIS," "we," the "Company" or the "registrant" are to Fidelity National Information Services, Inc., a Georgia corporation, and its subsidiaries.   3$57,  ,WHP Business  2YHUYLHZ  ),6LVDJOREDOOHDGHULQILQDQFLDOVHUYLFHVWHFKQRORJ\SURYLGLQJVROXWLRQVDQGVHUYLFHVWRFOLHQWVLQWKHUHWDLODQG LQVWLWXWLRQDOEDQNLQJSD\PHQWVFDSLWDOPDUNHWVDVVHWPDQDJHPHQWDQGZHDOWKDQGUHWLUHPHQWPDUNHWV7KURXJKWKHGHSWKDQG EUHDGWKRIRXUVROXWLRQVSRUWIROLRJOREDOFDSDELOLWLHVDQGGRPDLQH[SHUWLVH),6VHUYHVFOLHQWVLQRYHUFRXQWULHV +HDGTXDUWHUHGLQ-DFNVRQYLOOH)ORULGD),6HPSOR\VPRUHWKDQSHRSOHZRUOGZLGHDQGKROGVOHDGHUVKLSSRVLWLRQVLQ SD\PHQWSURFHVVLQJILQDQFLDOVRIWZDUHDQGEDQNLQJVROXWLRQV3URYLGLQJVRIWZDUHVHUYLFHVDQGRXWVRXUFLQJRIWKHWHFKQRORJ\ WKDWHPSRZHUVWKHILQDQFLDOZRUOG),6LVD)RUWXQHFRPSDQ\DQGLVDPHPEHURIWKH6WDQGDUG 3RRU¶VŠ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inancial Information About Operating Segments and Geographic Areas  ),6UHSRUWVLWVILQDQFLDOSHUIRUPDQFHEDVHGRQWKUHHVHJPHQWV,QWHJUDWHG)LQDQFLDO6ROXWLRQV ,)6 *OREDO)LQDQFLDO 6ROXWLRQV *)6 DQG&RUSRUDWHDQG2WKHU)RULQIRUPDWLRQDERXWRXUUHYHQXHVDQGDVVHWVE\JHRJUDSKLFDUHDVHH1RWHV Q  DQGRIWKH1RWHVWR&RQVROLGDWHG)LQDQFLDO6WDWHPHQWV  Competitive Strengths :HEHOLHYHRXUFRPSHWLWLYHVWUHQJWKVLQFOXGHWKHIROORZLQJ  ‡ Brand),6KDVEXLOWDJOREDOEUDQGNQRZQIRULQQRYDWLRQDQGWKRXJKWOHDGHUVKLSLQWKHILQDQFLDOVHUYLFHVVHFWRU  ‡ Global Distribution and Scale -2XUZRUOGZLGHSUHVHQFHDUUD\RIVROXWLRQRIIHULQJVFXVWRPHUEUHDGWKHVWDEOLVKHG LQIUDVWUXFWXUHDQGHPSOR\HHGHSWKHQDEOHXVWROHYHUDJHRXUFOLHQWUHODWLRQVKLSVDQGJOREDOVFDOHWRGULYHUHYHQXH JURZWKDQGRSHUDWLQJHIILFLHQF\:HDUHDJOREDOOHDGHULQWKHPDUNHWVZHVHUYHVXSSRUWHGE\DODUJHNQRZOHGJHDEOH WDOHQWSRRORIHPSOR\HHVDURXQGWKHZRUOG  ‡ Extensive Domain Expertise and Extended Portfolio Depth),6KDVDVLJQLILFDQWQXPEHUDQGZLGHUDQJHRIKLJK TXDOLW\VRIWZDUHDSSOLFDWLRQVDQGVHUYLFHRIIHULQJVWKDWKDYHEHHQGHYHORSHGRYHUPDQ\\HDUVZLWKVXEVWDQWLDOLQSXW IURPRXUFXVWRPHUV2XUEURDGSRUWIROLRRIVROXWLRQVLQFOXGHVDZLGHUDQJHRIIOH[LEOHVHUYLFHDUUDQJHPHQWVIRUWKH 


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     5LVNV5HODWHGWR2XU%XVLQHVVDQG2SHUDWLRQV Security breaches or attacks, or our failure to comply with information security laws or regulations or industry security requirements, could harm our business by disrupting our delivery of services and damaging our reputation and could result in a breach of one or more client contracts.  :HHOHFWURQLFDOO\UHFHLYHSURFHVVVWRUHDQGWUDQVPLWVHQVLWLYHEXVLQHVVLQIRUPDWLRQRIRXUFOLHQWV,QDGGLWLRQZHFROOHFW SHUVRQDOFRQVXPHUGDWDVXFKDVQDPHVDQGDGGUHVVHVVRFLDOVHFXULW\QXPEHUVGULYHU VOLFHQVHQXPEHUVFDUGKROGHUGDWDDQG SD\PHQWKLVWRU\UHFRUGV6XFKLQIRUPDWLRQLVQHFHVVDU\WRVXSSRUWRXUFOLHQWV¶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ntity mergers or consolidations and business failures in the banking and financial services industry could adversely affect our business by eliminating some of our existing and potential clients and making us more dependent on a more limited number of clients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f we fail to innovate or adapt our services to changes in technology or in the marketplace, or if our ongoing efforts to upgrade our technology are not successful, we could lose clients or our clients could lose customers and we could have difficulty attracting new clients for our services.  7KHPDUNHWVIRURXUVHUYLFHVDUHFKDUDFWHUL]HGE\FRQVWDQWWHFKQRORJLFDOFKDQJHVIUHTXHQWLQWURGXFWLRQVRIQHZVHUYLFHV DQGHYROYLQJLQGXVWU\VWDQGDUGV2XUIXWXUHVXFFHVVZLOOEHVLJQLILFDQWO\DIIHFWHGE\RXUDELOLW\WRHQKDQFHRXUFXUUHQW VROXWLRQVDQGGHYHORSDQGLQWURGXFHQHZVROXWLRQVDQGVHUYLFHVWKDWDGGUHVVWKHLQFUHDVLQJO\VRSKLVWLFDWHGQHHGVRIRXUFOLHQWV 


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e operate in a competitive business environment and if we are unable to compete effectively our results of operations and financial condition may be adversely affected.  7KHPDUNHWIRURXUVHUYLFHVLVLQWHQVHO\FRPSHWLWLYH2XUFRPSHWLWRUVYDU\LQVL]HDQGLQWKHVFRSHDQGEUHDGWKRIWKH VROXWLRQVDQGVHUYLFHVWKH\RIIHU6RPHRIRXUFRPSHWLWRUVKDYHVXEVWDQWLDOUHVRXUFHV:HIDFHGLUHFWFRPSHWLWLRQIURPWKLUG SDUWLHVDQGVLQFHPDQ\RIRXUODUJHUSRWHQWLDOFOLHQWVKDYHKLVWRULFDOO\GHYHORSHGWKHLUNH\DSSOLFDWLRQVLQKRXVHDQGWKHUHIRUH YLHZWKHLUV\VWHPUHTXLUHPHQWVIURPDPDNHYHUVXVEX\SHUVSHFWLYHZHDOVRRIWHQFRPSHWHDJDLQVWRXUSRWHQWLDOFOLHQWV¶LQ KRXVHFDSDFLWLHV,QDGGLWLRQWKHPDUNHWVLQZKLFKZHFRPSHWHKDYHUHFHQWO\DWWUDFWHGLQFUHDVLQJFRPSHWLWLRQIURPVPDOOHU VWDUWXSVZLWKGLVUXSWLYHWHFKQRORJLHVZKLFKDUHUHFHLYLQJLQFUHDVLQJLQYHVWPHQWVJOREDOEDQNV DQGEXVLQHVVHVFRQWUROOHGE\ FRPELQDWLRQVRIJOREDOEDQNV DQGJOREDOLQWHUQHWFRPSDQLHVWKDWDUHLQWURGXFLQJFRPSHWLWLYHSURGXFWVDQGVHUYLFHVLQWRWKH PDUNHWSODFHSDUWLFXODUO\LQWKHSD\PHQWVDUHD(PHUJLQJWHFKQRORJLHVDQGLQFUHDVHGFRPSHWLWLRQPD\DOVRKDYHWKHHIIHFWRI XQEXQGOLQJEDQNVROXWLRQVDQGUHVXOWLQSLFNLQJRIIVROXWLRQVZHDUHFXUUHQWO\SURYLGLQJIURPRXUOHJDF\V\VWHPV,QWHUQDWLRQDO FRPSHWLWRUVDUHDOVRQRZWDUJHWLQJDQGHQWHULQJWKH86PDUNHWZLWKJUHDWHUIRUFH7KHUHFDQEHQRDVVXUDQFHWKDWZHZLOOEH DEOHWRFRPSHWHVXFFHVVIXOO\DJDLQVWFXUUHQWRUIXWXUHFRPSHWLWRUVRUWKDWWKHFRPSHWLWLYHSUHVVXUHVZHIDFHLQWKHPDUNHWVLQ ZKLFKZHRSHUDWHZLOOQRWPDWHULDOO\DGYHUVHO\DIIHFWRXUEXVLQHVVILQDQFLDOFRQGLWLRQDQGUHVXOWVRIRSHUDWLRQV6HH,WHP Business, &RPSHWLWLRQ  Global economic, political and other conditions, including business cycles and consumer confidence, may adversely affect our clients or trends in consumer spending, which may adversely impact the demand for our services and our revenue and profitability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onstraints within global financial markets or international regulatory requirements could constrain our financial institution clients' ability to purchase our services, impacting our future growth and profitability.  


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he sales and implementation cycles for many of our software and service offerings can be lengthy and require significant investment from both our clients and FIS. If we fail to close sales or if a client chooses not to complete an installation after expending significant time and resources to do so, our business, financial condition, and results of operations may be adversely affected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ur results may fluctuate from period to period because of the lengthy and unpredictable sales cycle for our software, changes in our mix of licenses and services, activity by competitors, and customer budgeting, operational requirements or renewal cycles. 3DUWLFXODUO\ZLWKUHVSHFWWRRXU*)6VHJPHQWRXURSHUDWLQJUHVXOWVPD\IOXFWXDWHIURPSHULRGWRSHULRGDQGEHGLIILFXOWWR SUHGLFWLQDSDUWLFXODUSHULRGGXHWRWKHWLPLQJDQGPDJQLWXGHRIVRIWZDUHOLFHQVHVDOHVDQGRWKHUIDFWRUV:HRIIHUDQXPEHURI RXUVRIWZDUHVROXWLRQVRQDOLFHQVHEDVLVZKLFKPHDQVWKDWWKHFXVWRPHUKDVWKHULJKWWRUXQWKHVRIWZDUHRQLWVRZQRUDWKLUG SDUW\¶VKDUGZDUH:HJHQHUDOO\UHFRJQL]HOLFHQVHUHYHQXHZKHQWKHOLFHQVHFRQWUDFWLVVLJQHGWKHVRIWZDUHLVGHOLYHUHGDQG WKHWHUPKDVEHJXQ7KHYDOXHRIWKHOLFHQVHRIWHQGHSHQGVRQDQXPEHURIFXVWRPHUVSHFLILFIDFWRUVVXFKDVWKHQXPEHURI FXVWRPHUORFDWLRQVXVHUVRUDFFRXQWV7KHVDOHVF\FOHIRUDVRIWZDUHOLFHQVHPD\EHOHQJWK\DQGWDNHXQH[SHFWHGWXUQV7KXV LWLVGLIILFXOWWRSUHGLFWZKHQVRIWZDUHVDOHVZLOORFFXURUKRZPXFKUHYHQXHWKH\ZLOOJHQHUDWH%HFDXVHWKHUHDUHIHZ LQFUHPHQWDOFRVWVDVVRFLDWHGZLWKVRIWZDUHVDOHVRXURSHUDWLQJUHVXOWVPD\IOXFWXDWHIURPTXDUWHUWRTXDUWHUDQG\HDUWR\HDU GXHWRWKHWLPLQJDQGPDJQLWXGHRIVRIWZDUHVDOHV2XUUHVXOWVPD\DOVRYDU\DVDUHVXOWRISULFLQJSUHVVXUHVLQFUHDVHGFRVWRI HTXLSPHQWWKHHYROYLQJDQGXQSUHGLFWDEOHPDUNHWVLQZKLFKRXUVROXWLRQVDQGVHUYLFHVDUHVROGFKDQJHVLQDFFRXQWLQJ SULQFLSOHVDQGFRPSHWLWRUV¶QHZVROXWLRQVRUVHUYLFHV  ,QDGGLWLRQWKHUHDUHDQXPEHURIRWKHUIDFWRUVWKDWFRXOGFDXVHRXUVDOHVDQGUHVXOWVRIRSHUDWLRQWRIOXFWXDWHIURPSHULRG WRSHULRGLQFOXGLQJWKHIROORZLQJ  ‡ FXVWRPHUVSHULRGLFDOO\UHQHZRUXSJUDGHWKHLULQVWDOOHGEDVHRIRXUVROXWLRQVZKLFKWULJJHUEX\LQJF\FOHVIRU FXUUHQWRUQHZYHUVLRQVRIRXUVROXWLRQVDQGRXUUHYHQXHJHQHUDOO\IOXFWXDWHVZLWKWKHVHUHIUHVKF\FOHVDVDUHVXOW ‡ WKHEXGJHWLQJF\FOHVDQGSXUFKDVLQJSUDFWLFHVRIFXVWRPHUVSDUWLFXODUO\ODUJHFXVWRPHUV ‡ FKDQJHVLQFXVWRPHUGLVWULEXWRURUUHVHOOHUUHTXLUHPHQWVRUPDUNHWQHHGV ‡ GHIHUUDORIRUGHUVIURPFXVWRPHUVLQDQWLFLSDWLRQRIQHZVROXWLRQVRURIIHULQJVDQQRXQFHGE\XVRURXU FRPSHWLWRUVRURWKHUZLVHDQWLFLSDWHGE\WKHPDUNHW ‡ RXUDELOLW\WRVXFFHVVIXOO\H[SDQGRXUEXVLQHVVGRPHVWLFDOO\DQGLQWHUQDWLRQDOO\DQG ‡ LQVROYHQF\RUFUHGLWGLIILFXOWLHVFRQIURQWLQJRXUFXVWRPHUVZKLFKFRXOGDGYHUVHO\DIIHFWWKHLUDELOLW\WRSXUFKDVH RUSD\IRURXUVROXWLRQV  


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     Failure to obtain new clients or renew client contracts on favorable terms could adversely affect results of operations and financial condition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ur business and operating results could be adversely affected if we experience business interruptions, errors or failure in connection with our or third-party information technology and communication systems and other software and hardware used in connection with our business, if we experience defects or design errors in the software solutions we offer, or more generally, if the third-party vendors we rely upon are unwilling or unable to provide the services we need to effectively operate our business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     SURYLVLRQRIWKHVHVHUYLFHVZHPD\LQWXUQIDLOWRSURYLGHRXUVHUYLFHVRUWRPHHWRXUREOLJDWLRQVWRRXUFXVWRPHUVDQGRXU EXVLQHVVILQDQFLDOFRQGLWLRQDQGRSHUDWLQJUHVXOWVFRXOGEHPDWHULDOO\KDUPHG   The Dodd-Frank Act, the CFPB and state regulatory authorities, such as the New York State Department of Financial Services, may result in business changes for certain of our businesses and clients that have or could have an adverse effect on our financial condition, revenues, results of operations, or prospects for future growth and overall business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any of our clients are subject to a regulatory environment and to industry standards that may change in a manner that reduces the types or volume of solutions or services we provide, or may reduce the type or number of transactions in which our clients engage, and therefore, reduce our revenues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ur revenues from the sale of services to members of VISA, MasterCard, American Express, Discover and other similar organizations are dependent upon our continued certification and sponsorship, and the loss or suspension of certification or sponsorship could adversely affect our business.  


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hanges in card association and debit network fees or products could increase costs or otherwise limit our operations.  )URPWLPHWRWLPHFDUGDVVRFLDWLRQVDQGGHELWQHWZRUNVLQFUHDVHWKHLQWHUFKDQJHIHHVWKDWWKH\FKDUJH,WLVSRVVLEOHWKDW FRPSHWLWLYHSUHVVXUHVZLOOUHVXOWLQRXUDEVRUSWLRQRIDSRUWLRQRIVXFKLQFUHDVHVLQWKHIXWXUHZKLFKZRXOGLQFUHDVHRXU RSHUDWLQJFRVWVUHGXFHRXUSURILWPDUJLQDQGDGYHUVHO\DIIHFWRXUEXVLQHVVILQDQFLDOFRQGLWLRQDQGUHVXOWVRIRSHUDWLRQV )XUWKHUPRUHWKHUXOHVDQGUHJXODWLRQVRIWKHYDULRXVFDUGDVVRFLDWLRQVDQGQHWZRUNVSUHVFULEHFHUWDLQFDSLWDOUHTXLUHPHQWV $Q\LQFUHDVHLQWKHFDSLWDOOHYHOUHTXLUHGZRXOGIXUWKHUOLPLWRXUXVHRIFDSLWDOIRURWKHUSXUSRVHV  ,QWHUFKDQJHIHHVDQGUHODWHGSUDFWLFHVKDYHEHHQUHFHLYLQJVLJQLILFDQWOHJDODQGUHJXODWRU\VFUXWLQ\ZRUOGZLGH7KH UHVXOWLQJUHJXODWRU\FKDQJHVWKDWFRXOGRFFXUIURPSURSRVHGUHJXODWLRQVFRXOGDOWHUWKHIHHVFKDUJHGE\FDUGDVVRFLDWLRQVDQG GHELWQHWZRUNVZRUOGZLGH6XFKFKDQJHVFRXOGKDYHDQDGYHUVHLPSDFWRQRXUEXVLQHVVRUILQDQFLDOFRQGLWLRQGXHWR UHGXFWLRQVRUFKDQJHVLQW\SHVRIWUDQVDFWLRQVSURFHVVHGRQEHKDOIRIRXUFOLHQWV  Our securities brokerage operations are highly regulated and subject to risks that are not encountered in our other businesses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     Privacy laws and regulations, such as the GDPR, require FIS to adopt new business practices and contractual provisions in existing and new contracts which may require transitional and incremental expenses which may impact our future operating results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f we fail to comply with applicable regulations or to meet regulatory expectations, our business, results of operations or financial condition could be adversely impacted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igh profile payment card industry or digital banking security breaches could impact consumer payment behavior patterns in the future and reduce our card payment transaction volumes.  :HDUHXQDEOHWRSUHGLFWZKHWKHURUZKHQKLJKSURILOHFDUGSD\PHQWRUGLJLWDOEDQNLQJVHFXULW\EUHDFKHVZLOORFFXUDQGLI WKH\RFFXUZKHWKHUFRQVXPHUVZLOOWUDQVDFWOHVVRQWKHLUSD\PHQWFDUGVRUUHGXFHWKHLUGLJLWDOEDQNLQJVHUYLFH,IFRQVXPHUV 


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     ‡ &RVWVWRUHDFKDSSURSULDWHVWDQGDUGVWRSURWHFWDJDLQVWF\EHUVHFXULW\DQGRWKHUGDWDVHFXULW\ULVNVRUWLPHOLQHWR DFKLHYHVXFKVWDQGDUGVPD\H[FHHGWKRVHHVWLPDWHGLQGLOLJHQFH ‡ 5LVNWKDWDFTXLUHGFRPSDQLHVDUHVXEMHFWWRQHZUHJXODWRU\UHJLPHVRURYHUVLJKWZKHUHZHKDYHOLPLWHGH[SHULHQFH WKDWPD\UHVXOWLQDGGLWLRQDOFRPSOLDQFHFRVWVDQGSRWHQWLDOUHJXODWRU\SHQDOWLHV ‡ 5LVNWKDWZHDVVXPHRUUHWDLQRUWKDWFRPSDQLHVZHKDYHDFTXLUHGKDYHDVVXPHGRUUHWDLQHGRURWKHUZLVHEHFRPH VXEMHFWWRVLJQLILFDQWOLDELOLWLHVWKDWH[FHHGWKHOLPLWDWLRQVRIDQ\DSSOLFDEOHLQGHPQLILFDWLRQSURYLVLRQVRUWKH ILQDQFLDOUHVRXUFHVRIDQ\LQGHPQLI\LQJSDUWLHV ‡ 5LVNWKDWLQGHPQLILFDWLRQUHODWHGWREXVLQHVVHVGLYHVWHGRUVSXQRIIWKDWZHPD\EHUHTXLUHGWRSURYLGHRURWKHUZLVH EHDUPD\EHVLJQLILFDQWDQGFRXOGQHJDWLYHO\LPSDFWRXUEXVLQHVV ‡ 5LVNRIH[SRVXUHWRSRWHQWLDOOLDELOLWLHVDULVLQJRXWRIDSSOLFDEOHVWDWHDQG)HGHUDOIUDXGXOHQWFRQYH\DQFHODZVDQG OHJDOGLVWULEXWLRQUHTXLUHPHQWVIURPVSLQRIIVLQZKLFKZHRUFRPSDQLHVZHKDYHDFTXLUHGZHUHLQYROYHG ‡ 5LVNWKDWZHPD\EHUHVSRQVLEOHIRU86)HGHUDOLQFRPHWD[OLDELOLWLHVUHODWHGWRDFTXLVLWLRQVRUGLYHVWLWXUHV ‡ 5LVNWKDWZHDUHQRWDEOHWRFRPSOHWHVWUDWHJLFGLYHVWLWXUHVRQVDWLVIDFWRU\WHUPVDQGFRQGLWLRQVLQFOXGLQJQRQ FRPSHWLWLRQDUUDQJHPHQWVDSSOLFDEOHWRFHUWDLQRIRXUEXVLQHVVOLQHVRUZLWKLQH[SHFWHGWLPHIUDPHV ‡ 3RWHQWLDOORVVRINH\HPSOR\HHVRUFXVWRPHUVRIWKHEXVLQHVVHVDFTXLUHGRUWREHGLYHVWHGDQG ‡ 5LVNRIGLYHUWLQJWKHDWWHQWLRQRIVHQLRUPDQDJHPHQWIURPRXUH[LVWLQJRSHUDWLRQV  The future results of our Brazilian operations may not meet our financial goals following the unwinding of the Brazilian Venture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¶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here could be significant liability for us if all or part of the AS Split-Off were determined to be taxable for U.S. federal or state income tax purposes.  2Q0DUFK6XQ*DUGFRPSOHWHGWKHVSOLWRIIRILWV$YDLODELOLW\6HUYLFHV $6 EXVLQHVVWRLWVH[LVWLQJ VWRFNKROGHUVLQFOXGLQJLWVSULYDWHHTXLW\RZQHUVRQDWD[IUHHDQGSURUDWDEDVLV WKH³$66SOLW2II´ $WWKHWLPH6XQ*DUG UHFHLYHGRSLQLRQVIURPRXWVLGHWD[FRXQVHOWRWKHHIIHFWWKDWWKH$66SOLW2IIVKRXOGTXDOLI\IRUWD[IUHHWUHDWPHQWDV WUDQVDFWLRQVGHVFULEHGLQ6HFWLRQDQGUHODWHGSURYLVLRQVRIWKH,QWHUQDO5HYHQXH&RGHDVDPHQGHG WKH³&RGH´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