Fidelity National Information Services Inc (FIS) 2011 Q4 法說會逐字稿

Good morning. If we could have everyone take their seats, we'll get started. My name is Mary Waggoner. I'm Senior Vice President of Investor Relations for FIS. I'd like to welcome all of you who have gathered with us in Orlando this morning. Thank you for making the trip. We would also like to welcome and thank those of you who are participating via Webcast.

We've modified the format of this year's event in a couple of ways. First, we are hosting FIS Investor Day 2012 in conjunction with our global leadership summit. So in addition to our guests from the investment community we are joined by more than 300 of our leaders from around the world. We're very excited to have all of you with us and hope you will find today's presentations insightful and informative. Second, we will begin the day with a discussion of fourth quarter and full year 2011 results. The earnings press release and supplemental slide presentation have been posted on our website at FISglobal.com. The 2012 presentation will be posted on the website in approximately 30 or 40 minutes, and we'll make copies available in the room at that time.

Joining me on stage are Frank Martire, Chief Executive Officer; Gary Norcross, Chief Operating Officer; and Mike Hayford, Chief Financial Officer. The next 30 minutes or so will include prepared remarks read by Frank, Mike, and Gary, covering our 2011 operating and financial results. Then we will transition to the 2012 strategy discussion and financial outlook. There will be a 30 minute Q&A session for the investment community at the end of both presentations and we ask that you hold your questions until that time. We'll take questions from the leadership team later this afternoon and tomorrow. And we will conclude this morning's events with a topic table reception where members of the investment community will have an opportunity to interact with several additional members of our leadership team. And that will be in the Crystal Ballroom just immediately across the hall where you all were for breakfast this morning.

Now I'd like to direct your attention to slide 4 for the Safe Harbor commentary. Please note that today's discussion will contain forward-looking statements. The statements are subject to risks and uncertainties as described in our filings with the SEC. FIS undertakes no obligation to update any forward-looking statements whether as a result of new information, future or otherwise, except as required by law.

In addition, today's discussion will include comments and references to non-GAAP financial results in order to provide you with more meaningful comparisons for the periods presented. Reconciliations of GAAP to non-GAAP results are available in the earnings press release which is located on the tables in front of you, and are also posted on our website FISglobal.com.

Now I'll turn the presentation over to our CEO, Frank Martire. Frank?

Thank you, Mary. Sorry I didn't leave time for the applause there. Thanks, Mary. Good morning. I'd like to welcome you to the event, the investment community to Orlando, thank you for being here. Those on the Webcast, all of the FIS global leaders out there, welcome. We hope you find it to be, as Mary said, very informative and insightful. We're pretty excited about our Company and our future, and we hope you will be too. I will begin the presentation with a quick overview of our financial results and business highlights for 2011. Gary will follow with the operations report and Mike will provide additional insight into our fourth quarter and full year results.

2011 was another strong year for FIS, and I'm pleased with the progress we are making to execute our global business strategy. We continue to build global scale, finishing the year with more than $5.7 billion in revenue and $1.7 billion in EBITDA. We generated adjusted net earnings of $698 million and $1.2 billion in operating cash. The team is doing a nice job executing our business plans, as evidenced by 5% organic top-line growth and 12% growth in earnings per share in 2011. Organic growth has steadily improved since 2009 led by strong results within our international business. International revenue increased to $1.2 billion in 2011 and grew 22% organically for the year, driven by strong performance in both the FIS and capital businesses.

Our international business continues to play a key role in our growth strategy. And we are excited to have surpassed the $1 billion milestone. Importantly, we maintain our focus generating new sales and expanding existing client relationships. We are very pleased to announce our new agreement with the Royal Bank of Canada to establish this new direct bank in the US. This is the first of what we believe will be many joint initiatives between FIS and Capco. Gary will provide more detail on the project later in the presentation.

FIS has consistently delivered strong financial results in one of the most challenging environments in banking history. Revenue has increased from $3.4 billion in 2008 to more than $5.7 billion in 2011, or approximately 20% per year on a compounded basis. EBITDA has increased by 27% on average. And the EBITDA margin has increased 480 basis points during that time. And we have consistently delivered midteens EPS growth. These strong results illustrate the strength of our business model and our ability to execute.

We have also been very disciplined in allocating capital. While we continue to invest for growth, our ability to leverage investments across our global enterprise has resulted in more efficient use of capital. We also continue to strengthen our balance sheet. We reduced our debt by $382 million in 2011 and improved the leverage ratio to approximately 2.8 times at year-end. And our strong free cash flow enabled us to return approximately $460 million in cash to shareholders through share repurchases and dividends in 2011. As noted in yesterday's press release, our Board of Directors increased the annual dividend to $0.80 per share, and also approved a new $1 billion share repurchase program. These actions reflect our confidence in our business outlook and our commitment to further enhancing shareholder returns.

We continue to feel very good about our business. As you will hear throughout today's presentation, we are highly focused on driving growth and margin expansion while continuing to invest in the future. We will continue to be very disciplined in managing our capital and we are committed to enhancing shareholder value. Our success is tied directly to the hard work, dedication of our employees, and how well we serve our clients. I would like to take this opportunity to personally thank our leadership team, many of whom are with us this morning, and our 33,000 employees worldwide. I would also like to thank our clients who depend on us and trust us to keep their business running every day.

Now, I will turn it over to Gary for the operating highlights. Gary?

Thanks, Frank. Thanks to everyone for being with us today. We have a lot of material to cover so I'll provide a brief overview of the fourth quarter operating highlights in order to spend more time discussing our business strategies in the next presentation.

Overall buying decisions strengthened in the fourth quarter both on a sequential and year-over-year basis. We continued to experience solid demand for outsourced processing, back office support and professional services as clients seek to leverage our scale and broad service capabilities. As we discussed during last year's investor update, and all throughout the year, we think we have a great opportunity to gain more share in the large financial institution market space. We experienced strong sales growth within this market in the fourth quarter on a year-over-year and sequential basis which points to the investments in our sales force for this market are paying off.

We continue to be the provider of choice for direct banks in North America. Barclays Bank, one of our large outsourced clients in the UK, will use our core solution for their new direct bank in the US. And as Frank mentioned earlier, we are very pleased to announce that FIS and Capco were selected by RBC to assist in establishing its new direct bank to serve its cross-border clients in the US. The project scope, which included defining the targeted operating model, building interfaces between multiple internal and external systems, and operating the core banking platform on an outsourced basis demonstrates our ability to deliver transformation in the market. And clearly differentiates FIS from other technology providers and large-scale system integrators. Both RBC and Barclays are great examples of the power of our global go-to-market strategy.

The investments we have made to integrate our solutions continue to provide FIS with a key competitive advantage and all the markets we serve. We supported more than 100 core platform conversions in North America during 2011. As we have discussed in the past, these relationships drive meaningful pull-through revenue including payments, back office support, and professional services. We continue to invest in early stage and emerging technologies to drive innovation. We experienced strong growth in our mobile client base throughout 2011, including Peoples United Bank and BMO Harris in the fourth quarter. We surpassed 1.5 million mobile endpoints in 2011 and we continued to expect rapid growth within this channel.

We are also having great success with our bill payment solution. We converted more than 270 institutions to our platform during 2011 and have a strong conversion pipeline heading into 2012. In addition, we are seeing continued strength in our internet banking and next generation core solutions.

Our international business continues to produce very strong results. As Frank discussed, international revenues surpassed the $1 billion mark in 2011, and now represents 20% of the total Company. We continue to benefit from strong card growth in Brazil, where we are processing more than 50 million cards. We also saw strong growth in Europe in both the traditional FIS business as well as Capco's European practice. We continue to view Europe as a great place to do business given the size of the market, the strategic relationships that we have with our clients, and the opportunity to capture additional share. I am very pleased to report that ING recently committed to FIS as its enterprise wide core banking provider. We are making great progress leveraging our payment solutions internationally. We continue to win share in debit. And are also pleased with the success of our UK prepaid platform which we acquired through the Metavante acquisition. We added 20 new clients to the UK platform in 2011 and were recently named the leading prepaid organization for the UK and Europe.

In short, it was another good year for our Company. We continued to execute our global sales strategy. I'd like to leave you with the following thoughts before turning the discussion over to Mike. We continue to see investment decisions being made and are encouraged by the fourth quarter sales and solid momentum going into 2012. We are winning new deals and expanding existing client relationships. We believe international will continue to be a growth engine for our Company. We remain bullish on our European business and we are excited about the opportunities we have for continued growth in all of the markets we serve. Our focus on innovation, new product development and enhancements including mobile, bill pay, and loyalty offerings, is producing tangible benefits and driving strong profitable growth for our Company. While we believe that 2012 will continue to be a year of transition for the financial industry, we believe the outlook is improving. And we are confident that we will continue to win share and lead the market.

Now I'll turn it over to Mike.

Thanks, Gary. I'll start on page 18 and walk through financial results for the quarter and the full year 2011. In the fourth quarter adjusted revenue increased 7% to $1.5 billion and grew 5% on an organic basis. EBITDA increased 5.7% to $470 million. The margin was 31.5%, a 30 basis point decline compared to the fourth quarter of 2010, reflecting a higher portion of consulting and services revenue, lower software license fees and approximately $16.3 million in severance and M&A costs. And as you'll recall, 2011 versus 2010 all those additional costs for severance and integration are included in our '11 numbers, and were not included in the corresponding number for '10.

For the full year revenue increased 10% to $5.7 billion and grew 5% organically. EBITDA increased 4% to $1.7 billion. EBITDA margin was 29.4% or 190 basis points lower than 2010. The decline is primarily due to the change in revenue mix and the inclusion of non-recurring costs that were included in 2011 results.

Fourth quarter adjusted earnings per share totaled $0.66. And free cash flow totaled $294 million. The fourth quarter tax rate was approximately 34%. And average share count at 301 million. Earnings per share for the year totaled $2.27 which is a 12% increase over 2010. Free cash flow increased to $871 million, in part due to the timing of settlement activities. The full-year tax rate was approximately 33% and reflects tax planning strategies related to our international business. The average share count for the year was 307 million.

On page 19 is the reconciliation of earnings per share from GAAP to adjusted EPS. GAAP earnings per share totaled $0.41 in the fourth quarter and $1.61 for the year. We added back $0.14 in acquisition related amortization for the fourth quarter and $0.55 for the full year. Other non-operating adjustments that occurred in the fourth quarter include $0.09 of costs related to the debt refinancing completed in the fourth quarter, $0.08 related to the write-down in the market value of our First Source investment that was acquired through the Metavante acquisition. These are added back to our fourth quarter and full year results to attain our adjusted EPS. And a $0.05 benefit related to reduction in the estimated Capco earnout which is subtracted from our results. This brings it to an adjusted EPS of $0.66 in the fourth quarter and $2.27 for the year.

Next we'll continue with our segment results. On page 20, Financial Solutions revenue increased 6% to $533 million in the quarter and increased 2% on an organic basis. As you'll recall, we had a difficult fourth quarter comparison due to a large license sale in the fourth quarter of 2010. And the reduction in job scope for a large Capco client which occurred in early 2011. Financial Solutions EBITDA declined 3% to $214 million for the quarter and included approximately $9 million of integration and severance costs. The EBITDA margin declined 360 basis points to 40.1% due to a large license sale in the fourth quarter of 2010, growth in professional services, including Capco, and severance costs in the fourth quarter 2011. Full year revenue increased 10% to $2.1 billion and grew 4% organically. EBITDA which includes approximately $12.4 million of integration and severance costs totaled $841 million, a 2% increase over 2010. The margin declined 33 basis points(Sic-see press release) to 40.5% reflecting the change in revenue mix and again the integration in severance costs included in the 2012 numbers which would not have been included in 2010.

On page 21, Payment Solution revenue increased 2% to $642 million in the fourth quarter, and increased 4%, excluding the check related businesses. EBITDA increased 7% to $257 million. The Payment Solutions margin decreased 180 basis points to 40% in the fourth quarter of 2011 compared to the fourth quarter of 2010. Full year revenue increased 1% to $2.5 billion and increased 4% on an adjusted basis. Full year EBITDA increased 1% to $945 million including approximately $13.6 million in integration and severance costs. The margin increased 30 basis points to 37.9%.

On page 22, International revenue increased 19% to $319 million in the fourth quarter and grew 15% on an organic basis. The strong performance is due primarily to growth within our European business including Capco and the higher card volumes in the joint venture in Brazil. EBITDA increased 14% to $93 million and included approximately $1.5 million of integration and severance costs. The margin declined 120 basis points to 29.1%, reflecting addition of the Capco services revenue. International revenue totaled $1.2 billion for the year reflecting organic growth of 22%. EBITDA increased 32% to $270 million and included approximately $2.9 million of integration and severance costs. The full year margin declined 160 basis points to 22.9% due primarily to the higher portion of consulting revenues and the inclusion of integration and severance costs in 2011.

Corporate costs on page 23 totaled $94 million in the fourth quarter and $365 million for the full year, after adjusting for the $13 million reduction in the estimated future capital earnout. These results include approximately $2.5 million in integration and severance and M&A costs in the fourth quarter and $9.5 million for the full year 2011.

The next slide measures our full year results against our 2011 outlook that we presented at our last Investor Day in December for 2010. We met or exceeded targets for revenue growth, organic revenue growth, earnings per share and free cash flow.

On page 25, a summary of free cash flow of $871 million which came in strong due to the timing of settlement activities, some prudent capital management and then lower than expected tax payments due to our tax planning strategies. CapEx totaled $300 million for the year or approximately 5% of revenue compared to 6% of revenue in 2010. Uses of free cash flow in 2011 included a $382 million reduction in debt and approximately $460 million in dividends and share repurchase. We repurchased a total of 15 million shares in 2011 or approximately 5% of total outstanding including 8.5 million shares in the fourth quarter.

Page 26 is a summary of the debt refinancing we completed in December of 2010. We amended our existing credit agreements and issued an additional $150 million in unsecured senior notes. In summary, these actions include refinanced a $325 million term loan scheduled to mature in January of this year. Replaced expiring revolving commitments to maintain ample liquidity. Refinanced our term loan B to reduce interest expense. And extended maturities through issuance of the new bonds.

Page 27 is a summary of our outstanding debt as of December 31. Year-over-year total debt declined to $4.8 billion. And the weighted average interest rate was down from 5.1% to 4.8% at the end of the year. Debt to EBITDA declined to 2.8 times compared to 3.2 times at the beginning of the year.

I'll summarize on page 28 some of the key takeaways from 2011. Overall 2011 was a very solid year for FIS. Organic growth and EPS were in line with our expectations and our original guidance. Free cash flow was strong at $871 million. We returned $460 million to shareholders through dividends and share repurchases. And most importantly our prospects for continued growth and ability to generate significant cash flows remain strong as we head into 2012.

That concludes our 2011 review of results for fourth quarter and the full year. As Mary mentioned we'll take your questions at the end of our Investor Day walk-through which we'll complete shortly. While we get ready for that walk-through, we've asked three of our executives to come up -- Mark Davey, Jim Susoreny and Rob Heyvaert. We've asked them to give you their view of what it means to be the leader, what does it mean to be FIS leaders. Starting with Mark Davies, who's the executive in charge of our International Business segment. And I'll turn the stage over to Mark.

Thanks very much, Mike, and good morning, everybody. Mike just asked us to spend a few minutes talking about what leadership means for FIS. And particularly I think it's important in the context that the meeting this morning, which we've just had, which is about our earnings results, and of course the meeting we've got coming up right now which is about our strategy, are just two meetings in a series of meetings we're having this week. Right after we finish this meeting, we have our annual leadership conference. Which is a congress we have every year where we assemble the top 300 people in the Company who really set the tone and direction for the organization overall. And bringing 300 people together in an event such as this, who are literally all around the world, from Brazil, London, Singapore, Australia, is a real big investment in time. But it shows, really, how seriously we take leadership as an organization.

And our conference this year actually has three themes. And those three themes are about our guiding principles, which really drive everything we do. The first one we're going to be talking about, the first them we're going to take, is about our strategy and the execution of our strategy. And you'll be hearing more about that in the next presentation. Secondly, we're also going to be talking about some of the operational things we're doing as an organization to further improve the quality of service and the quality of the products that we offer to our clients. And the final thing is we will be talking about our focus on clients. We're actually going to be hearing some of our clients, sharing their opinions and views about us, how we can actually continue to improve those relationships that we have with our clients going forward.

So it's a very exciting time for us. And as part of that agenda we actually are really looking forward to sharing our ideas and our thoughts, and driving the strategy of the business as we go forward. After the leadership conference, we are then moving on and we have a sales conference which is our global sales conference where we get together all of the people involved in sales for the Company, and we plan for next year as well as celebrate, of course, the successes of 2011.

So with that, could I ask Jim to give a few comments about his view on leadership?

Thank you, Mark. My name is Jim Susoreny. I'm an Executive Vice President. I manage the Sales an Client Management function here at FIS. So as Mark just referenced, this is a big week for us here all week long. But now that we've been ranked number one on the annual FinTech 100 list as a company, we continue to become the company that our clients and prospects come to and look for, for not only the IT solutions but for strategic thought leadership. So these companies, from the standpoint of an institution size, all institutions from de novos to the largest global institutions, they can be confident with our leadership position that the projects that we engage on with them will have a successful completion. And these are projects from transformational type industry projects to company transformation projects, all the way through to department transformation within a company.

Being the leader really does one thing for us. It gives us access so that as a sales and client management for us, we can get access to the decision makers, to the executives not only of our current client base but of our new account opportunities. As you all know, a significant amount of our business comes from our current client base and cross-sell. So I'll tell you, the key for us, though, is once a prospect becomes a client, it's to nurture the relationship. And nurture the relationship not only around solutions and service but more importantly around people and strategic thinking. And one way we do that is in a meeting like this, as Mark mentioned, but in the sales meeting following. What we do is educate. We train and we arm our sales and client management force with the tools necessary for them to not only complete their annual plans but to work on the strategic multi-year plan with their clients, all meant to meet our clients' business objectives.

I want to personally thank you all for your time today. And I want to turn it over to my colleague, Rob Heyvaert.

Good morning. My name is Rob Heyvaert. I'm the Chairman and CEO of Capco. And it's a real pleasure to be here. I joined the family about a year ago and they've asked me to make a few comments on leadership. And actually mainly leadership looking into the future. What does the future hold for banks and what does the future hold for a company like ours. And how important is it to be a leader and how important it is to have scale, size, global reach to get there. And you have to understand that I think we need to have a back drop.

And the back drop is the financial services institutions are really today in an area they've never been before. The margins are compressing, there's huge regulation coming from every side. There's actually, I would even argue, a tremendous amount of confusion of what's going on in the industry. The return on equity is going down dramatically, and it's really not sustainable. Often people think that a recovery will make and fix everything. This time around, for financial institutions, it's a very different story. It's a story about cost take-outs but it's also a story about keeping up to hyperconnectivity and social media. As a result of that, a company like ours has never been more relevant than today.

There is tremendous transformation going on. You could probably compare it to the manufacturing industry where financial institutions would stop doing everything the same like Bank A, like Bank B, and like Bank C is doing for the very simple reason that they cannot afford it. It's unaffordable. As a result of that, a Company like ours who gets in very early with the Capco acquisition, having a conversation at the top of the house with the C level executive, going all the way to the execution of operations and technology. That full stack is what we call leadership. That full stack is implemented at a local level in Canada, in the US, but at a global level in Asia or Europe.

As a result of that, I would argue that this Company is better positioned than anybody else to be a trusted partner. And have the scale to work with financial institutions. As a result of that, institutions will stop doing a lot of stuff themselves. They will rely on FIS, its ability, to run in a secure way, operations and technology businesses for the clients. We will have a difficult market for banks in the future. But FIS will profit tremendously, we believe, from that difficulty. And we will help financial institutions take out roughly $500 billion of costs because that's what it takes to get back to return on equity.

We feel very bullish about the future. It's a pleasure to have you and I hope my colleagues will give you an interesting morning about the future of FIS. Thank you.

We're now ready to move into the 2012 strategy discussion and financial outlook. I'm going to stall for just a moment because the 8-K has not yet been filed with the 2012 presentation. As soon as that is up and available, we'll pass out the books. But we can go ahead and get started with the beginning portion of the presentation.

Frank will lead off with a strategy discussion, followed by Gary Norcross. And Mike Hayford will come up again to talk about business strategy, growth strategy, and financial outlook. Then we will have an executive panel to handle Q&A for about 30 minutes. And then proceed on over to the Crystal Ballroom for the topic table discussions. For the investment community, there are surveys for you to fill out. We would really appreciate your doing that. We value your input. Anything we can do in terms of timing, flow, format, information that we provide for next year's Investor Day we would welcome your input. So if you would fill those out as we go throughout the day. Laurie and team will pick those up and we'll summarize those results and use that for feedback for the next event.

So with that, I'll ask Frank Martire to come back up to the stage.

Thank you, Mary. Good morning again. Thanks again, Mark, Rob and Jim. Very nice job talking about leadership and our Company and our future.

So I thought I'd give you an update on our key strengths in the Company and our strategy and our focus, always a focus on our performance. I'll start with our key strengths. The question always asked. Why? Why invest in FIS. Our market leadership position. Jim talked about it a few moments ago. Our clients know who we are. Even ones who aren't our clients know who we are. They respect us. They know us. They know we'll deliver and we get references from our clients every day. That is so powerful to us in the marketplace.

We have high recurring revenue. Over 80% of our revenue is recurring. Stable growth. consistent stable growth in a Company. And we know that will continue, because we have the confidence in our Company and the confidence in our clients. Strong EPS growth. We do midteens EPS growth historically. We don't talk about the future and what it's going to be. We talk about our history and what we've done, because that gives credibility when we do talk about the future. Very strong cash generation. We generate cash, strong cash flow. And value-enhancing capital allocation. Our $1 billion share repurchase announcement and agreement and authorization. $1 billion. And we increased our dividends from $0.20 to $0.80 a year. Commitment to our shareholders, commitment to add value.

So what is FIS today? Our revenues, $5.7 billion. EBITDA, top line is growing, bottom line growing. EBITDA $1.7 billion. Very strong operating cash flow, $1.2 billion. Over 14,000 loyal clients in over 100 countries worldwide. And 33,000 of the best employees in the world. Our leadership position has been recognized. We're number one on the FinTech 100. Number one. We're in the Fortune 500, the Forbe's 2000. And Barron's is a very interesting one that we're very proud of. We are ranked number three, ahead of some very prestigious companies. And it's based on cash flow return, on investment, primarily cash flow return on investment over a three-year period of time. We ranked Number 3. Very proud of those results.

We are a global company. But when we talk about it, we don't talk about being in different regions and having a client or two. We're talking about meaningful in each region. A meaningful presence in each region. So if you look at North America, we're the leading core and payment processing company. 15,000 employees. 80% of our revenue, as I talked about, recurring. And focus obviously in the US and Canada.

If you look at Europe, again, core and payment processing, over 2000 employees, large presence. Focus in the UK, Germany, France, Western Europe. No exposure in some of the less financially stable countries like Greece or in Western Europe. And growing in the UK, Germany, France. If you look at Latin America, we're the Number one third-party processor in Brazil. Number one, second to none. Asia Pacific, we do core and payment processing. 6,000 employees. Australia, India, China, Thailand, large presence. We truly are a global Company.

We have a very strong track record of execution. At the end of the day, it was what have you done and what are you going to do for me. So let's talk about what we've done. We've grown from $3.4 billion to $5.7 billion from 2008 to 2011 top line. 20% CAGR. What about the bottom line? $800 million to $1.7 billion. 27% EBITDA growth CAGR. 27% 2008 to 2011. A 480 basis point margin expansion. And I talked about it, midteens EPS growth. So that's what we've done, consistently growing this Company top line, bottom line.

We're first in financial technology. We're very client focused. Anybody you talk to in this Company will talk about our focus on our clients. They are our future. We have the domain expertise. We know the business. We know the banking business, the financial institution business. We know it. Our clients expect us and respect us for that. We have solid leadership. Rob talked about it a little bit. Our clients want to know how we are going to keep them competitive, not just today but three years from now and five years from now and what they need to do. And then that we'll have the innovation of products to get them there. But clearly, that we know how to help them get there.

Our employees, we get the best, top talent in the industry. Results oriented people. We give them career advancement opportunities. We take care of our employees because they are our most precious asset and they are our future.

Winning investment of choice, we really believe that. Look at our financial performance historically, and what we talk about going forward. We have disciplined capital allocation. You've seen that, we've delivered on that on our capital allocation. Talking about the share repurchase authorization, talking about our dividend increase and superior value creation for our shareholders. We keep our shareholders in mind all the time. We focus on our clients and we focus on our employees because we know, and we truly believe, at the end of the day if we do those two things, we will truly take care of our shareholders.

A little bit on our strategy. So look at FIS and what's happened over the last decade, the last 10 years. We were in a major acquisitive mode. We did a lot of acquisitions, 2003 to, say, 2009. So why do we do that? We needed size, we needed scale, we needed to grow our market presence. We needed products for our clients. The way to do that and get there as fast as possible was by being acquisitive, and that's what we did. That was our focus. But then our clients said to us, you got the products now, you have the scale, you have the size, you need to integrate it all for value to us. So we spent our time 2009 to 2011, approximately, integrating, integrating, integrating. Making it seamless for our clients. Adding true value for our clients.

And now what are we going to do going forward? We're going to optimize that environment, make it cost effective, cross-sell our products, generate new revenue, optimize our expense base. So if you look at it as three phases strategically, one from an acquisitive phase, one to an integration phase, and then one clearly an optimization. A four-point strategy. Expand our client relationships. We'll buy, build, or partner to add solutions. Lead market through transformation, and continuously improve and drive margin expansion. I'm going to talk briefly to each.

So we'll look into expand our global reach with all of our clients in all the regions of the world. Look at North America. I'd like to give you a couple examples of clients. People's Bank in Bridgeport, Connecticut is about a $28 billion institution. And they converted to our system in 2010. Jack Barnes is the CEO there. I got to meet Jack in 2008 and Jack said to me we've never outsourced in the long history of People's Bank in Bridgeport, never outsourced. We ran in-house. That's what we do. Why should I even consider being able to outsource with you, besides cost optimization, being cost effective? Why should I be able to trust you?

We started that dialogue in 2008. And the reason why I bring it up is you don't just go out to these large institutions and say overnight -- I could save you money, I could save you a few dollars, so come with me. They have to get to know you. They have to get to trust you. They have to believe in you and your people and your products before they will even consider going on our system. Those are the types of relationships we build.

First Niagara Bank, $30 billion institution, keep growing that. John Petrey will be here with our leadership team. Gary has known him a long time, built a long-term relationship with him talking about the benefits of his partnership with FIS. RBC -- we got the existing new direct bank agreement. Fantastic agreement for this Company. How do you build them? You build them on strong relationships.

Europe -- ING has committed to FIS as their global platform. Think about that. ING as their global platform. Phenomenal for us. National Australia Bank. We have a relationship with them not only in the UK and in Australia. And Bruce Jennings is here from the UK. Mark Davey has built a long-term relationship with him. And he will address our leadership team also. Tremendous loyalty.

Latin America. We process more than 50 million cards through our JV there. 50 million. Bradesco, who our partner is there, launched the ELO card earlier this year, private label card. They've signed already over 400,000 people to that card base. We continue to outsource there. We continue to build the business. We continue to have a great leader there for us in Brazil. And [Reginald Lozero] who's with us today. Just fantastic growth business for us, a great story for FIS.

Asia Pacific. Bank of India and Union Bank, they are driving approximately 3,000 ATMs with us. And we've launched a new prepaid card for Woolworth's, Australia's largest retailer. In China, we do core processing for about 15 banks. In Thailand, 8 of the top 10 banks do core processing with FIS.

So when we talk about our presence in all these regions we're not talking about a small presence or having a few people land it. We're talking about significant presence and significant growth opportunities. Buy, build or partner. This is pretty easy for us. We do all three. Whatever brings the product to our customers with the optimal product as quickly as we can and as efficient as we can is the way we'll go. We're not prejudiced to buying, building or partnering. We will do what we need to do to take care of our clients. And we will invest and we'll continue to invest in the future.

And we're leading through transformation. Rob talked about the thought leadership. Our clients come to us and, yes, we have to have product but they start by saying to us -- Help me get where I need to be. And sometimes, where exactly do I need to be? We depend on you, FIS, you need to help us with these answers. You need to partner with us, as to where we need to be, how we're going to get there. Where we are today, where we need to be, how we're getting there, and then do you have the products to make sure that we could be highly competitive. And that's what we do for our clients. So that truly is a transformation. We're not just out there selling products. We're selling thought leadership. We're truly being a good partner.

And then we have the domain expertise. You have to have it. You have to have the industry knowledge. You have to have the leaders in your Company from the very top on down spending their career in a financial institution business. That's where they should be because that's what they expect of us, not being in some other industry. This is the industry they expect us to have knowledge in.

And continuous improvements to drive margin expansion. You know what? Day-to-day. We talk about optimization, cost optimization, driving expansion. And I talked about the 480 basis points of expansion. And you say how do you get there? Do you just sit down and say this is it for this year or next year? No. We do it during the budget cycle, we do talk about it but we do it every day. We make sure we optimize our business every day in the best interests of our clients and the organization and the shareholders. And we discuss it during the annual budget cycle so we have targets. And we're talking about a target going forward in future years of 30 to 50 basis points improvement every year. And that's what we expect. We expect our organization to deliver and our leaders, and we do. And we do it in such a fashion that we give even better service to our clients.

One final thought, focus on performance. So you look at our Company. We have high recurring revenue. We've demonstrated that in the past and we will continue to in the future with stable growth, over 80% recurring. Continuous margin expansion, the 480 basis points, we talked about, the 30 to 50 going forward. Continuous margin expansion. Strong EPS growth, midteens EPS growth. Very strong cash flow. And we focus on the use of our cash flow. Our debt repayment we discussed today. The dividends going from $0.20 to $0.80. The share repurchase authorization of $1 billion. Focus on enhanced shareholder return.

So as we look at our Company, why are we excited? We're excited because we have over 300 leaders here today talking to you with excitement and how excited they are about the future of this Company. We're excited because our clients are so loyal to us. And our clients go out of the way to give references to us and talk about this great Company. That's why we're excited about the future of FIS.

I want to thank you for your time. And now I'm going to turn it over to Gary Norcross, our Chief Operating Officer. Thank you.

Good morning. I'm really looking forward to spending the morning with you. As you guys might know, my name is Gary Norcross, Chief Operating Officer. I've been with the Company 23 years. And before I get into the presentation, I'll just cut to the punch line. When you look at our position in markets, as many of the people have talked about, when you look at our solution set, when you look at what's going on in the economy, and how everything is driving in our direction of this Company we built out, I've never been more excited in my career to be part of a Company. And I think if you look around at our more than 300 leaders, it clearly defines the results that Frank talked about earlier, has been brought by these people in this room. We've got the finest leadership group in the industry, bar none. I'll put them up against anybody. And so the outlook is very bright for FIS and we're very excited about where we're going.

But that being said, I do want to talk about a number of areas for us. I want to talk about market and market positioning. I think it's important to understand, there are different markets in the financial institution marketplace. And a lot of people talk about their desire to go in international markets or go into LFI. You can't understand how much time that takes and how much commitment that takes. Some of these markets take years or decades to break into, and I want to talk about our positioning of those. I also want to talk about our strategic execution. Frank laid out at a high level our strategy but how do we implement it? How do the 300 people in this room, how are they going to go forward and implement this strategy. And we're going to talk about that. And then finally, how do you drive performance through that. How do you get the margin expansion and the free cash flow to continue to allow you to invest back in solutions?

So with that, let's jump into the market segmentation. This is how we view the market. If you think about it, all of these markets are very strategic. We feel it is very important for us to participate in all markets. Because there are certain markets that might have issues that others don't. And for us to be distributed across all of the markets is a key differentiator for us. If you look at less than $10 billion, clearly very strong competitive position. And I'll talk about the attributes of each of these markets in a minute. But we've got a very strong competitive position. There are a lot of competitors here. As I mentioned, we did over 100 conversions in this space last year. We talked about the earnings call.

Our large financial institution market is a very important one. We're going to give you some framework of what's going on in that market, the growth characteristics of that market, some things we're very excited about. Clearly we've got the leading market position there. And it's growing, based on our 2011 results. We've talked so much about international but international is such a key differentiator for us. Under the leadership of Mark Davey and his team and the Capco European practice, what we're accomplishing in the international markets are really second to none.

And in the non-financial, I won't talk a lot about non-financial today. Not because it's strategic. The reality is, what we're doing in non-financial is we're going into adjacent markets where we can leverage our assets and technology. So a great example of that would be we've obviously built out the largest outsourcing footprint in North America. We've got the largest, most strategic data centers that exist in the industry. We take that industry footprint and we're able to deploy that into other markets at really very nice revenues and very nice margins. What that allows us to do is underwrite our cost for delivery back into the financial institution marketplace. And allows us to drive leverage. So non-financial is a very strategic area focus for us, as well.

Let's look at the various attributes of the markets. Less than $10 billion, we talked about this. Large number of institutions in North America here. We're seeing this market segment decline at a rate of about 3% to 5% per year. Whether it's FDIC closures or acquisitions, this market is going to consistently decline at about that rate. Lots of competitors in this space. In a minute we'll talk about the evolution of the markets and where people are in their buying habits. But at the end of the day, these banks are looking for single-source providers. They're absolutely looking for ways that they can compete with the large institutions. And they have to leverage their buying power with a single-solution provider. At the end of the day, our advantage is very strong market position here. Very highly rated products. Frank talked about we do a lot of surveys to our clients and we get valuable feedback from our clients on how we're performing, what's their loyalty to us. But not only that, just how are our products are functioning. And what comes back year in and year out, is just how much our products mean to our clients and how well they perform. We're increasing market share in here. As I said, over 100 conversions just last year alone. The great thing about all of these markets I'm talking about is really our sales force and the ability to deploy our sales force across these various markets. But more to come on that later.

If you look at the $10 billion -- I should have mentioned on the less than $10 billion, projected spend of about $24 billion. You'll see various numbers. You can see the source of what we're including there. Not as fast a growth there. Frankly, we still have some elements of clients in the less than $10 billion that are struggling to hold on. They're struggling to figure out how to survive. We're starting to see a lot more clients buy in that space. But still an element of clients that are struggling.

And the greater than $10 billion, about 100 institutions. 98 to be exact today. Very sophisticated buyers. As you get larger and larger in that space, clearly the buyers are very sophisticated. They understand their product needs. They understand their solution needs. They are starting to spend more and more around services. As Rob talked about, a lot of things going in this segment specifically where they've made some decisions that are very tough for them. So at the end of the day, we're seeing a lot of very high increase in services spend. We're seeing more and more clients look towards outsourcing or ways to get leverage out of this. The nice thing about where FIS is positioned, and this is why I'm so positive on where we are as a Company, is our market strength is growing here and we truly do have credibility here. Frank mentioned Peoples United Bank. If you think about large-scale transformation projects that have gone on in the last two years, I really can't think of anybody other than FIS that's delivered them. And that reputation is building. And there are countless examples of failed implementations in this space.

And so, at the end of the day, if you're going to make a decision to go for a transformation project, you want these 300 people pulling on your rope for you. You want them to get that implementation installed and across the line. And we've got a proven track record of doing that. So very important. And with that credibility, we're able to continue to cross-sell. We actually last year talked about redeploying some of our resources in the sales engine under Jim Susoreny. And focus more on LFI, which is one of our strengths of our leveraged sales force. We did that. And interesting enough, our sales increased by almost 60% in this segment alone last year on contract value. So you see the benefit and the flexibility of our sales force.

When you think about international, very important segment to participate in as well. And one of the things that I tell everybody, as I mentioned earlier, these things take time to get into. You can't sit around. When our competitors say -- Hey, we're going to go international -- I immediately think I'll see you in 20 years. It takes years to build out. Decades to build out a presence in these countries, a solution set that will meet these individual country needs, to gain credibility and break in those markets. Clearly our largest competitor here is in-house developed in the international market. We've seen limited outsourcing to date. But then when you look where outsourcing is occurring, FIS is the chosen solution provider. Whether it's our joint venture in Brazil where we're the largest third-party outsourcer of card processing. The Barclays Bank that we talked about, where we've outsourced consumer lending. And we've got countless examples of that. But, still, outsourcing is more at its infancy.

Very large market at $131 billion. Certainly our highest growth area. And make no surprises, it's going to continue to be our highest growth area as a Company. Our global distribution network that we built out is really second to none. Going forward we'll want to continue to expand our products. But we have the broadest products available now in the international marketplace. And our size and scale are definitely differentiators and advantages.

So I've talked about the sales force, let's tee this up. At the end of the day, we have more than 650 sales professionals. And as Mark and Jim mentioned earlier, they're coming here on Wednesday. So we've got our leadership community in over the next two days. We'll be talking about our strategy, we'll be talking about execution against 2012 and beyond, product innovation. Then we'll bring in our sales force, more than 600 people will be here, and we'll be discussing our go-to-market plans, redeploying resources and where we see market activity that's appropriate. How to drive new product through that engine. We've proven, and I'll talk in a minute about our innovation around our product life cycle, we've proven the more products that we produce that meet our clients; needs, putting it through our sales force really is an unprecedented advantage for us. And we see great lift. And as I mentioned earlier, just being able to shift those resources from certain markets to LFI last year, seeing that 60% bump. So those are the kind of things that this engine allows us to do, this distribution capability.

What's interesting is the economy is helping. Rob was talking about the economy and some of the things that banks are dealing with. And if you think about it, it could be pretty dire, right? How are the banks going to survive in this space. I can assure you they will. But there are a lot going on. There's multiple pressures coming from every angle. A lot of banks in the large FI and international markets are struggling with past decisions. When their profitability was growing they really didn't reconcile in their mind what does my underlying solution architecture need to be. How do I need to pull this together so I can deliver future value and compete.

These past decisions are weighing very heavily. In fact, recently, I was at a very large bank in North America and they were simply wanting to leverage and launch their mobile solution. The problem is their series of bad decisions they had made over the last five years was really a major in impediment to do something as simple as launching mobile tablet in the marketplace. And therefore, they were struggling with how to retain their clients of that need. Great problem for FIS to solve. The first thing we do there, obviously, engage Capco in that engagement, come in and build out a transformational plan on how to take them from where they are today over multiple phases and get them where they need to be. All while embracing these new product launches. So a great example of how the power of FIS truly is the only company out there that can come in and help these institutions transform.

It's really also these market pressures are playing to our strategic focus. In a minute, I'll talk about the shift towards outsourcing. It's not a new slide. We talk about this every year. But the economy is speeding this up. I can tell you today, we're having more conversations in the LFI space about outsourcing and how to leverage the scale of FIS than we've ever had in the history of our Company. So these economic issues are pushing these banks very hard and we're in the perfect position to take advantage of it.

If you look, as I mentioned, we've talked about this a number of years. I've been with the Company 23 years. When I started with this Company, everybody in the industry was a pure monoline player. Single product delivering for a single problem. What we saw over the years is we saw an evolution of where various markets started wanting to buy broader solution capabilities. And so, as Frank mentioned, we did a series of acquisitions. And we did those series of acquisitions to build out the broadest application suite in the industry. And we did it to serve all of the market segments that exist. I'll tell you today, we're very well-equipped with our arsenal of products and services and our leadership team and our markets. And very comfortable. So we don't have the need to go out and do large-scale acquisitions to continue to grow the businesses we serve today.

But what we saw was the markets have continued to evolve. So they've gone from point-to-point solution to application outsourcing to solution outsourcing. And now we see large demand for transformational services, all driven, frankly, by the economic needs. There was a point in time where a $50 billion bank would sit and look at you and say -- I have no desire to fully outsource everything I have. I have scale. I can do it better than you guys can do it. Today that's no longer the answer. Today, the answer is that I'm burdened by all of the investment. My costs are going through the roof. I'm shutting down branches to get costs out of my infrastructure. My IT costs continue to accelerate. I'm not getting the lift I need to be able to invest in new products. I can't come back and invest in new products without doing a giant services engagement because of all of these fragmented solutions. FIS, as I said, plays to our strengths and allows us to participate in those conversations like no other.

So if you look, wrapping up our market positioning, clearly we're well-established in all markets. I hope you see that. And as I said, we've been in these markets for decades. And in many instances, as I've shared with you, this is not having you just decide you want to enter. It takes that amount of time to build out the relationships Frank talked about, and others. Economic issues are really playing to our strengths. So while a lot of people -- we would love to see the economy turn around faster, we would love to see all financial institutions return back to their normalized buying habits. And frankly, Mike's going to talk about our long-term guidance. We think we need that market lift in order to get to the higher end of our guidance, as we've discussed in the past. But right now, the good news is the economic issues are pushing very large institutions to make decisions different than what they've made in the past.

The shift towards outsourcing is where we are a clear leader. Every conversation, we just do not have conversations anymore about licensing software. It is always about some type of outsourcing engagement, some type of professional services engagement, some type of much more broader solution.

So with that, after looking at the markets, let's talk about and focus on the strategy and where we're going with the strategy Frank discussed. Our strategy focus falls in really three distinct areas. And every area is meant to increase, drive increase profitable growth. Period, end of story. I think it's important that we require focus on all of these areas. And because all of these things it really does allow us to outpace our competitors.

The first area of focus is one around solutions. So if you think about it, this breadth of capability is a requirement. Monoline players are struggling for surviveability every day in this market. If all you can bring is a single or a couple of product solutions, it is very difficult to compete. And so people are struggling with this. The breadth of capabilities. We have more than 300 products and services today. That breadth is absolutely key. In a minute I'm going to talk to you about our portfolio management process because it's very important for you to understand how we take that $300 million of capital and invest back in our software.

Obviously, we have to develop and so that's all geared around our fundamental business. We also have to develop an innovation. And we're going to talk about innovation and the importance that innovation is playing in our Company today. And then this area around services. So very focused on our solutions. But we can't be just focused there. We have to further penetrate the large financial institution marketplace. So if you have the broadest solutions, the advantage is deploying that across more markets. The more markets you can deploy it across, obviously the more growth you can get. The more profitable growth you can get. So that is key. And we've talked about the difficult nature of penetrating some of those markets a few minutes ago. So it's very important to further penetrate our LFI.

And then finally, we have to grow geographically. We cannot be a North American based company any longer. We have to look globally. We've talked about our global marketplace being 20%. But I also talked in our earnings calls of examples where we had a large strategic relationship with Barclays. Barclays decides to come to the US and launch a direct bank. Who do they look for, but their partner from the UK to help launch in the US. And so it's key to think about the full geographic reach.

We're going to dig into all five of these sub bullets. But before I do that, I really want you to understand our thought process around portfolio management. We think it's a key differentiator for our Company, and one that we're very proud of. The very first thing is, there are certainly some very well-established solutions that we have to offer. We talk about them all the time. Our integrated cores, our traditional payment offerings. This is where our traditional R&D is spent here. Obviously, these are slower growth type product offerings for us, but very strategic. These are the kind of relationships that allows that sales force I discussed earlier, those 650 people, to come and deploy it across that broader group. So very established solutions are very key.

But we also focus on emerging solutions. This is an area where we do development and where we've done some really exciting tuck-in acquisitions. And frankly, you'll hear us talk about doing future tuck-in acquisitions in this space. These are the things where we saw an opportunity years ago, invested heavily, and now they're paying off. A great example of that would be almost six years ago at Investor Update, we talked about next generation core processing. We talked about online, realtime, straight through processing, platform independence, all of these things. And the importance of that. And we saw an inflection point in the market. Now, our profile suite, clearly the fastest growing core product in our Company today, very strong internationally. The standard in direct banks in the US. And we're starting to see opportunities in the large retail marketplace with it. We wouldn't have that solution had we not seen that opportunity almost six years ago and started making those investments ahead of the curve.

We also saw it in integrated channels. When you start thinking about what's going on in the channel marketplace, people want to bring mobile. People want to bring a wallet. People want to bring all these various things. Having an integrated channel strategy wrapped around your solution that will allow you to easily plug what's the next applicable channel is very important. Once again, made those investments over five years ago. Started then, built through the curve and now we're seeing phenomenal growth through our TouchPoint suite. Think about some of the tuck-in acquisitions last year, two very small ones. We did GIFTS, which was an international wire product, money movement product. We did Compliance Coach that took advantage of the issues going on in regulatory compliance and education needs. Both of those companies have performed exceedingly well, well ahead of our pro forma expectations on the acquisition. And that's just a reflection of being able to put these kind of products through the distribution engine.

There's a third area we like to talk about in our portfolio management strategy. And this is early-stage solutions. Frankly, we choose to partner invest here. There's a lot of people that are doing irrational acquisitions in this space. I really view them as irrational. Very large dollar amounts paid for very small revenue streams with no predictability on what the outcome is going to be in the future. We choose to partner and make minority investments here. We'll take a small minority position. We'll take a board seat. We'll direct development. We'll let a lot of spend go on with those companies, frankly, without a revenue stream outside of the Company. We'll build a practice around it.

A great example of that would be some of the stuff we're talking about in mobile. Some of the stuff we're talking about in wallet. We've been able to build a very profitable business around our mobile activities. Meanwhile, everybody, where the people are building the solutions, are dumping a lot of irrational money because we're not sure exactly where all of that is going to end out. At the end of the year, we've broken through 1.5 million users. Obviously we think we're at an inflection point and that will still grow. Mobile wallet is still another great example. We're not sure what's going to win. Is it going to be NFC, is it going to be 2D bar code? No one knows exactly what's going to win. So at the end of the day, by making these small investments, partnering first, putting it through our sales engine, letting our customers who want to take advantage of that early adoption do that, gives tremendous growth for us. What you need to understand is this is a cyclical activity. So at one point in time, next generation core was in the early stage solution category. And so if you think about it, things build up and circle through this. What I think is real interesting that might surprise you is more than 15% of our revenue now is coming from these type of activities. And in a minute, we'll talk about in 2012 seeing almost $900 million of revenue coming out of this area at very profitable numbers.

So let's break down some of those five key areas. When you think about the fundamental business, very strong clients here. Very predictable, high recurring revenue. Allows us to look out and make key strategic investments in some of those innovative solutions. Very high scale and leverage. Incremental margins are very strong as we bring our new products and services. Our focus here is very clear -- cross-sell, cross-sell, cross-sell. As Jim talked about in the US markets now, we're more than 14,000 clients, the majority of our sales come from cross-selling additional products and services to existing clients. We have to drive product efficiencies here so we do need to do some investment to keep our efficiencies going and further help drive our cross-sales.

So great example of that would be in our fundamental business, we're doing some investment to help integrate our internet banking product more tightly. And allow it to become almost the de facto standard for internet banking. And it allows us to further drive that. I was talking to the leader of internet banking not too long ago, Susan Hawkins, and we were talking about that. She really feels we still have even three to five years of white space just in our existing base to continue to ramp those kind of products. And it's through that integration that drives that value.

Innovation, we talked a lot about it. But at the end of the day, this is a business that has grown at almost an 11% CAGR. So you've got 15% of the Company revenue growing at more than twice our overall growth rate. The pace of adoption here is clearly accelerating. There's a lot of people clamoring for these type of innovative solutions to retain clients. But as one of the things we didn't talk about in those markets, those financial institutions are seeing new incumbents coming in that are non-traditional competitors. And for that, they have to have the type of technology that allows them to keep and retain clients. So this is a great business for us. We've always focused our development here. Very traditionally, our fundamental business, we really just keep in regulatory compliance. We do minor enhancements to drive integration. We funnel our investment on this area and that's why you see the kind of high growth.

The distribution network is the key. If we didn't have the more than 600 sales resources, couldn't drive these kind of products. But we've proven through our tuck-in acquisitions, through our net new development, that running it through that sales force we can certainly drive superior results. A great example we've talked a lot about mobile. We've chosen a partner here. We've got two very strategic relationships, with Monetize and with mFoundry. Both of them very strong companies. In that instance, just over the last 18 months for our sales force, we've signed more than 400 clients on our mobile application. So you see the kind of opportunity that occurs.

So with that let's talk about services. We talked about this multiple times. About three years ago we were talking a lot about services. And once again, this is an area where the market has come to us. About three, almost five years ago, when we first got into the offshoring business, we realized that the fundamental labor arbitrage business didn't make sense for us. It was not a sustainable business model. What we chose to do instead was to build expertise around our own personal products and services and then drive that expertise strictly towards those areas. And as a result of that, we've now built out more than 20,000 professionals. You see the growth since 2008, more than 25% CAGR. We see this continually growing. The demand for this is very high and very important for us. It leverages our core competencies. We understand the products we develop better than anybody else. We understand about how to run large outsourcing engagements. It's only natural to tack on the knowledge outsourcing around these functions. And so as you see, we're continuing to see very strong growth here.

When you think about the large financial institutions and greater than $10 billion, you can see the spend. It's significant. 73% of the total spend in North America continues to drive here. So that's why it's a very important space for us to focus on. We have credibility though. Over 28% of our revenue already exists in this space. I talked about us redeploying sales resource and we got a 62% lift. I should have also shared with you, we didn't see a degradation in sales performance in our other markets as well. So it's important, though, when you see those inflection points to take advantage of them. We've got significant conversations in this space. Once again, I was in a recent very large institution and we were talking through their issues. And once again, they had made a series of very disparate investments. So once again, we were able to come in, propose to them a full-blown outsourcing engagement, focus on them a transformation way to pull some of their investments together, get more cost out of their infrastructure. But also be able to offer more services. So just a lot of opportunity in this space.

The final area of strategic focus we want to talk about is international. At the end of the day, a lot of people talk about, are you concerned about international competitors coming in North America. We're worried about all competitors. But at the end of the day, North America is an extremely difficult market to break into. International is also an extremely difficult market to break into. They're both very different. And as I said, we've had decades. We actually entered the international market in 1988 so we've had decades of experience building out this practice. And now you're seeing returns of those investments. Scale and global presence are a requirement. I think you ask any of the people here in the audience from the international group, they will tell you, if we don't have a critical presence in the country we're dealing in, it's very difficult to sell.

You have to have globally relevant solutions here. So we're very focused on making investments in solutions that we can take into the international markets, leveraging our North American expertise. Global partnerships are certainly expanding. I gave you the Barclays example, which is so key for us. And we see more and more of that going on. So at the end of the day, if you think about it, we've got 20% of our revenue now growing at 18% CAGR. We've got 15% of our innovation revenue growing at 11% CAGR. You start seeing a pretty compelling story of high growth in a lot of our assets.

So in conclusion, we have a very strong platform for growth in the strategic execution area. We think at the end of the day, our solutions are unparalleled regarding breadth and expertise and ability to deliver. We have ongoing product innovation and investment, and it's paying off. That 15% is going to grow. You need to expect that. We expect that to continue to be a high growth area. But we expect the percentage of our revenue coming out of innovative solutions to grow in the future.

We've established a presence in all of the high opportunity markets and we have critical credibility in all of the high opportunity markets. And our ability to assist clients transform their business we think is unparalleled. Once again, thinking about any large-scale project that's gone on in the industry, really FIS is attached to it. And something that I just couldn't be more proud of the leaders in this room.

So the question is, you see the market positioning, you see the strategic execution, now really how do you do that and still drive your margins up? So what I want to talk about, Frank talked about this but over the years, we were rolling up the industry and we talked about starting back in 2003 all of the acquisitions we did. We did go through a period of time where we integrated a lot of companies. We built a lot of global scale. All the while since 2008 increasing margins by 480 bips. So at the end of the day, we've had a proven track record of doing it. The people in this room are very comfortable of expanding margins in our business. We know we have to do it. Mike is going to come up and talk about not only do we have to expand margins for our shareholders. We have to make sure we redirect enough spend. So take spend down in certain areas so we can redeploy it for innovation. So we know we have to invest back in the business, all while getting expansion.

If you think about where that comes, really there's three areas that we target to optimize performance. Everybody wants to go to cost cutting. That's the boring side of it. Really, a key area for us of focus is revenue. We have a proven ability to lead the market in revenue growth and we see that continuing. We'll continue to refine our model. We'll continue to move our resources into appropriate place, and we'll continue to grow our distribution channel more than 650 people.

We spent most of last year taking out $260 million in cost, but there's still an opportunity to even take out more efficiencies as we grow. When you think about value-based pricing, we always like to talk about pricing compression. There is some pricing compression in certain markets. There's a lot of markets where we actually have seen price inflation. Where we're seeing such a demand for services that we're actually able to raise our professional services rates in order to meet the demand. We're driving enhanced sales tools across our distribution channel to help them identify opportunities and close those opportunities. And we've talked a lot about alignment. We have to also leverage scale to get margin expansion.

Resource realignment is a key. Last year, we saw some demands in services and what did we do? We took resources from non revenue-producing areas to revenue-producing areas. I have to caution, we got to make sure we don't do that all the time. And we can do that temporarily to take advantage of an opportunity. But a key -- back to our continued growth -- is investment back in the system. And so we've got to make sure that we're just not short-term looking for very quick revenue and very quick profits at the sake of long-term profitable growth.

We see a lot of opportunities in technology efficiencies. When we pulled FIS, or Fidelity, Metavante together to form FIS, we clearly consolidated a lot of our data centers. And so there's now an extra turn. Now that we've consolidated the physical facilities now, there's an opportunity to consolidate the physical platforms within the facilities. That takes obviously product consolidation. We've done a very good job of that. We've talked about that in prior earnings calls and our ability to move our bill payment solutions from the former Fidelity one to former Metavante one to the new FIS one with tremendous success. We have a lot of examples of that. But as we consolidate more product that benefits our clients, it's going to naturally drive more efficiencies in our scale.

And we also need to leverage development. We have done a good job historically of leveraging it but we've got to take it to the next level. We've got to make sure that we're building it only once and making sure that we're deploying it all across those markets. And this team has certainly signed up to deliver on that.

The third area is cost management. Clearly, we've got to leverage our buying power. We do a great job of this every year. But every year we have to come back to our solution providers and make sure that we're getting our services at the lowest possible cost. We've got to proactively manage discretionary spend and we continue to look at those areas. We've got to make sure that we're hiring in the areas that drive strategic growth and profitable growth. And make sure that we're holding firm in certain areas. But all of that, we believe, can easily drive 30 to 50 basis points of annual margin expansion.

So with that, wrapping it up. We have a great business, with amazing fundamentals. We're very proud of what we've built over the years. The market trends are in our favor. We really do feel the market is coming to us. We've made a tremendous amount of investments over the last decade and we see the market pushing in this direction. We have very strategic clarity. I'll tell you, over the next two days and by the end of this week, we won't have a leader or a sales rep in this organization that won't have clear insight to exactly where we need to go and how we're going to get there.

We're going to continually take market with our sales engine. Leveraging that sales engine, cross-selling, upsell and growing that every single year, like we've historically done. And that will continue to happen. And finally we do have an opportunity for operating leverage through our portfolio management approach and our focus. So with all of that, we know we'll continue to deliver superior performance over the next several years.

So with that, I'd like to turn it over to Mike Hayford, and Mike will give you some more insight into the financials. Thank you.

Somebody must have warned the audience on the way in not to make any noise, not to participate, no clapping. I'm going to do this before I forget, because if I do it at the end I'll forget. I just want to thank a couple people who put this on. Particularly for those of you guys up front, the analysts and investors who got the chocolates, the Valentine's Day chocolates. That is courtesy of Mary Waggoner. Mary, stand up so we can all applaud you. And then Jonathan Fleetwood who helps Mary put all this stuff together. I'm not sure whether it was Jonathan or Mary responsible for the chocolates. There's a lot of people involved, obviously, in putting not our only earnings day but our Investor Day deck together. The rest of them don't get yelled at on a daily basis, like Jonathan and Mary, so they get the applause at the event.

Second thing, just wanted to reference. We talk a lot about, we have employees here and I think the team, the executives, Mark and Rob and Jim did a nice job talking about the team and the leadership and what it takes to, as Gary said, have 33,000 employees focused on executing a strategy. Having our employees and making sure we get feedback from them, we do that routinely. Everybody in this room has incentives for employees. And we do that with our clients. Frank talked about the clients, Gary talked about the clients, and what it means to have those relationships. And at the end of the day, being able to walk in the door and walk in and say -- Not only do I want that next sale, but I demand that next sale, I've earned that next sale. Is all about having those client relationships.

The third piece of that, I just want to thank the group here. Obviously, the shareholders, this is a handful of us. Not a lot of us do as a large part of our job. We try to listen. You guys don't think we're listening that well but we try to listen. And we spent an awful lot of time in 2010 and 2011 listening to what our shareholders were looking for, what you'd like to see a little bit. And hopefully you saw a little of that yesterday and today.

And then the last comment I want to make is just around our Board. We have a couple of Board members here today. Obviously Frank and Jim Neary from Warburg. The management team went to the Board of Directors and we said a couple things. We said, what you've already seen, you saw the capital allocation, we asked to change our capital allocation and to be focused on giving some of the cash flow back to shareholders in the form of a dividend and the commitment to a share repurchase. The second thing which I'd say was a much bigger piece of the conversation and a lot more dialogue, we said we are changing our strategy. We've built the industry leader, as in we've built it. We're the number one. We don't have to go out and build it anymore. We don't have to look for that next deal to be successful. So we can take what we have and execute and operate and grow our Company. And so that piece of it, I'd say, was a lot more active, a lot more dialogue around a change in our strategy. And Gary and Frank both touched upon that.

And lastly, the other part of the dialogue with the Board was, here you've got this strategy, where are FIS, where are you Frank, Gary, Mike, on executing, taking the Company, taking the assets you've accumulated, and growing. And growing each day, each year, growing the top line and then growing the earnings. And I do say that, we have a very active Board, very engaged Board. We had a lot of dialogue around that. And management obviously has the recommendation and the focus, and convinced the Board that we feel very strong that we've built a platform that can grow. And you saw the results, obviously, in the change in the capital allocation. And I'll hit upon it. You saw it with both Frank and Gary. We're changing our strategy.

We've built the Company. We're going to execute. We're going to optimize, we're going to focus on organic growth. We aren't going to focus on building through M&A. So I'm going to give an overview. I'm sure no one has read ahead to the slides at the end. So I'll try to get some of the background to wrap up some of the comments you've heard already.

The business model, both Frank and Gary hit on this. I'm going to reemphasize it in a financial sense and how I look at it as a CFO. Highly recurring, stable revenue streams. We sit down and build plans. We're talking about building plans on about 18% of our business because 82% of it's going to recur. It allows us to focus on what we have to do next, because we have that stability. We've shown, and I'm going to show you some slides, that even during -- people ask us, what if you did a stress test like your customers have to do. And we'll go and say we did our stress test. It's called 2008-2009-2010. So I'll show you how we did in an environment we don't think we'll ever see in our lifetime. We never saw obviously before that. And how our revenue stream -- it didn't grow as much as we would like it but it stuck with us. And it had a very strong growth vis-a-vis the rest of our industry.

The ability to sustain and grow. Gary talked about that. We've got the distribution channel out there. We need products to push through there. We're investing in building products. We acquire, we partner. But once we have the distribution, which is very hard to replicate, very hard to get, and it's extremely valuable once you have it, driving products through is actually the easy part of our ability to grow. EPS -- to make sure that our top-line growth is translated into earnings growth. And then, most importantly, the focus on cash flow.

Gary talked about the markets we serve. I look at the markets we serve, the pie is not 100% balanced but it's a nice diversity of revenue streams. And as Gary walked through, community bank market is one decision, hopefully they pick FIS. They pick a provider and that provider gets the bulk of their wallet share. So it's out there planting flags. Once you get in there, you just cross-sell until you get 100% of their spend. It's competitive market. I'd say it's competitive in the sense that there are, you could say, a handful, but you probably would say less than a handful of players who are going to be around long term. Obviously we'll be one of them.

The enterprise market, much higher growth dynamics. We think that market is changing. We think the larger institutions who used to be able to sit and say -- I'm driving my interest spread, I've got my fee income, I might be making a lot of money in capital markets. Got all these sources of revenue, income, I don't worry too much about my cost structure. As Gary pointed out, those days are gone. We do think, and we have seen the attention to, what do I really need to do. And part of that manifests itself in institutions that are larger and larger, a $10 billion, $20 billion. Frank referenced People's United, $30 billion bank never ever would consider outsourcing. They looked at it and said - Why am I trying to do this? Why am I trying to keep up with the banks? I can't invest enough to keep my products current. And it generally doesn't come down to cost, although cost is an issue. It comes down to -- I can't keep up with my competition, spend enough, and get the products I need to compete. So it is a combination of, I can get better product and get it at lower cost. But we see larger and larger institutions willing to engage in a dialogue around getting a leveraged model like FIS brings.

And then the international market, I'd say the same story there. We've had conversations, in particular led with some of the relationships that Capco has. With institutions, Europe traditionally is everything. Not only packaged software but build and bent, create code inside by themselves. Never ever explore alternatives. We've started to see that we've got a couple relationships. But a lot more interest in dialogue into how do you grow. Both international markets. We would even say, obviously, Asia, high growth. But we look at Europe and say we think there's opportunities as institutions there have to change how they deploy technology. And then Gary talked about the non-FI market which leverages our FI assets.

This is a CFO dream, 82% recurring revenue. Sometimes you like to see it at 100%, but that model is a little difficult. Segments of our market like to take software and services. The 14% professional services which we call out, we used to have debates on how much of that is recurring and try to quantify that. We just gave you the number. You can make the decision. A large section of that, and I'll show you a slide coming up, does recur every year. Some of it's contracted but it's a little bit different nature, obviously, than processing. The right hand side of this graph just shows you that something we focus on is making sure that the underlying recurring portion of our business is growing and not just the non-recurring side.

So this is a question we always deal with. You have non-recurring revenue, 18%. What happens when the market goes bad and banks pull in their arms and stop spending? Does that business go away? We went back and looked at, again, in our stress test, 2008-2011, this is a pretty good indication that even though it may not be contracted, it may not be mandatory, it's not part of a recurring relationship per se in terms of a processing relationship. But it is recurring in nature in that the services we provide are generally services required by the institution to support their ongoing business. So not just to open the doors but to enhance, to integrate, to add new products. And you can see a little bit of dip in '09. I highlighted the Capco segment which is a lot of growth, on top of our traditional growth. But our traditional business, even in difficult times, does not go away in PSO and software.

You saw this chart. I think all three of us had this chart. We keep repeating it. 2008-2011, very difficult period for our customer base, very difficult period for our industry. 20% revenue growth, CAGR, over that period of time. EBITDA at 27%. So top line 20%, 27% on EBITDA. Obviously some of the integration, some of the cost take out related to some of the mergers. But as Gary walked through the steps he takes every year to drive efficiency and drive costs out, we've had very strong success moving that margin up. And then EPS 15%, so very strong EPS on top of our EBITDA growth.

Cash flow. As Frank referenced, Barron's number three. It's a three-year measure of who improved their free cash flow the most. So out of all of the companies they looked at, we were number three on that. The team has done a phenomenal job. If you went back to '06 and '07, our free cash flow, operating cash flow would be a much lower number. So we've been able to not only grow the Company but focus on what we do in terms of driving cash flow. Obviously that gives us opportunities for how we allocate that capital. We always start with reinvest in the Company. We have to reinvest. Our clients sign up for multi-year contracts, on average five to seven years. They expect us, they demand us that we're reinvesting, that we're keeping the products current.

Once we get past that, we'll talk about this a little bit further, but we've been able to pay down our debt. We've continued to focus on the 2 to 2.5 times debt to EBITDA range. Obviously, we bumped up our dividend from $0.20 to $0.80. We've been fairly aggressive repurchasing shares in '11. Obviously '10 was a big recap but '11 we went out in the market. And we've talked about approval for a $1 billion repurchase for the next four years going forward. And then M&A, and I'll talk about how we're going to do M&A and the focus we're going to put on that going forward.

Let's talk about the financial targets we have. Gary talked about this. I won't spend a lot of time on this. If you read the press and you read what's happening with banks, not just in the US, not just North America, but globally, it is a challenging marketplace. Underlying that, the fundamentals of how banks are going to make money is changing. We don't view it as a cycle, a temporary blip, cleaning up balance sheets. We view it that the banks really do have to find ways to operate business.

If you look at a bank, a bank may have bricks and mortar, it may have virtual, may have back office telephone support, internet support. But ultimately a bank is about the technology to drive financial products. As a bank changes how they compete, they are going to change their technology. So we look at that as an opportunity from two perspectives. One is that change and the need to be different is going to drive new products. It's going to drive investment. It's going to drive need for technology.

Secondly, we do think that, if you look at the US as a great example, there's four institutions who are extremely large. And the amount of money is measured in billions that they spend on IT every year. When you get to number five, you jump down a big jump. And as you look at the institutions who are trying to compete in that middle tier, they have to have all of the same products. They ju7st don't have the scale and infrastructure to put the same kind of money back into those products. We think that leverage model is a great model. It's a great way to drive what we did in community banking up into the mid tier. Again, we think that even the European institutions are going to be looking at ways to get better return out of their investment.

Let me spend a little time on I'll call it the near-term outlook. We label this 2012 to 2015. And let me just give you a little background on why we did that. So we still believe long term we're in the markets. We've got the reputation. We've got the brand. We've got the distribution to drive high single digit, the 6% to 9% long-term growth. So we still think eventually we'll be at that level. We think the market will be spending at the level. We think competition will consolidate down to allow us to grow at that. But as we look at the near term, we still see a slow, steady climb outside of the financial crisis. And then, quite frankly, now the challenge is government regulation, the challenge has changed in the world markets.

So just taking a near-term look. Our expectations are 4% to 7% on an organic top-line revenue. So a little bit below where we would aspire and expect to be long term but still very solid revenue growth. EBITDA margin, Gary walked through it and I'll go through just the math on how we get there. But we do believe that we have enough opportunity, given the size and scale, to continue to find ways to become more efficient. To continue to find ways, even on the top line, as Gary talked about, where we can hopefully minimize the discounting or reverse that trend and start to get some price increases in some areas of the business. So we think over that period of time we can drive a 30 to 50 basis point margin expansion.

EPS, 12% to 15% with the top line. And obviously we're using some of the balance sheet with the authorization to buy back some shares. Operating cash flow -- if you look at how much cash we expect to generate in that four-year window, $5 billion. So a little over $1 billion a quarter per year on average. And debt to EBITDA, again staying in that range 2 to 2.5. We think we look and operate and feel like an investment grade company. And obviously our debt load right now, we're not rated that. We think this is the range, you saw us take some action last year to bring some more bonds onboard, unsecured debt. So you'll see us moving towards the position where we could get to an investment grade if we felt that was necessary.

Let me just walk through again. I'm going to give you the general -- you guys know this -- but just how we look at margin expansion and the big moving pieces. The first thing is, this is part of our lives, this is just part of our business. Between some client attrition, sometimes caused by the industry, sometimes caused by, as Gary referenced, some of the closures we've seen by the FDIC. We expect that to continue in the lower end. Mergers probably more in the under $10 billion market. But mergers, particularly the mid tier and the large end of the market have a negative impact on us. And then pricing, again, is a deflationary factor in terms of our business each year, Per unit pricing tends to go down. And you take that all in, you start with your baseline from last year, you've got a little bit of a hole to recover to get margin expansion.

Gary talked about these three things, what we're doing, the revenue mix. Again, focus on how can we get some price increases passed through. Can we focus and incent the group of 600 salespeople coming in later this week to sell into higher-margin products. So what do we do on the top line to improve our margin? Leverage and scale -- how do we take our scale? If you look at what we did the last three years in terms of consolidating and collapsing some products, some platforms, some data centers, continue to do that going forward to drive some more cost savings. And cost management, how do we use our size to leverage our third-party relationships, our vendors. How do we leverage our size to become more efficient with our costs.

And then lastly, each year we have to make a decision do we want to reinvest some of those savings? I will say that in 2012, we're electing to take some of the improvements in the margin and improvements in cost structure that we made in '11 and put them back in, in '12. Some infrastructure. We're going to put some dollars back into security. We're going to put some dollars back into some products. So we're going to reinvest savings in '12 at a little higher rate. On any given year we'll decide what we need to do there. But if you look at that, we do believe that 30 to 50 basis points is a very attainable number.

So 2012, let me just talk about what we expect to drive in 2012. Organic revenue growth, 3% to 5%. You saw that in '11. We hit about 5%. Let me just point out a couple big things, '11 versus '12. Going into '11 we had a couple large projects, products, acquisitions and customers that we had had onboard the following fall. In the JV in Brazil we brought on a lot of cards in October of 2010. that provided a big bump organically for 2011. We will get growth in the JV. We just don't have that big conversion that we had at the end of '10. Capco came onboard, particularly in the European practice drove a lot of growth. So they will continue to grow. It just won't be the accelerated growth we saw in '11. So we still expect very strong continued organic growth vis-a-vis where we are in the industry.

EBITDA -- if you take the organic growth of 3% to 5%, the margin expansion, which is a little bit higher than we expect to be long term, some of that obviously is some one-times which were embedded in our margins from 2011. We do not expect to occur in 2012. So even with some of that reinvestment we expect a 40 to 80 basis point improvement in our margin, which gives us EBITDA growth in the 5% to 7% range. EPS $2.47 to $2.57. And then free cash flow conversion, we say this every year, of approximately net earnings. Last year was pretty high so year-over-year this is going to come down a little bit. It's going to approximate closer to adjusted net earnings. Two things that work. One is the timing delta in '11 was about a $70 million benefit to that $871 million number. So that will not occur in '12. We just wouldn't expect it to. And we're doing cash payments. One for the payment out to the JV to Bradesco as part of the JV agreement. And then we have a payment based on a settlement for a swap that we got through the Metavante acquisition. That was about $75 million, those two combined. So if you look at where we were last year to this year, again, I would suggest you model approximate net earnings for free cash flow.

Segment revenue growth, very consistent. I think these are the exact same numbers we shared last year for expected 2011 growth. FSG, mid single digits. PSG, low single digits. PSG ended the year pretty strong. But we still see headwinds and challenges, particularly in the paper-based side of that business. Electronically they are doing well. International 10%-plus, so we still expect double-digit growth in international. They had a very strong year this year, 22%. We don't expect it to be that high going into '12. And then consolidated, again, 3% to 5% organic growth. You can see that we didn't have any large acquisitions. We did a number of small product acquisitions in '11 So there's not going to be a lot of delta between organic growth and total revenue in '12.

Let me talk about the capital allocation and some of the decisions that you've already seen. That's why I talk about going to the Board. We went to the Board and said we're changing our strategy. We're not building the world's largest company. We've built the world's largest company, focus on FinTech. So going forward it's not about going out and finding the next deal. It's about going out and executing and operating and driving organic growth.

I just want to put it in perspective. If you look at what we're going to do the next four years, it hasn't been dramatically different the last four years. If you take out the Metavante acquisition, which obviously was very large, and then the recap in '10 which was really getting the balance between cash and stock, which we could not do. When we did the Metavante deal, we did all stock. If you take that out, again capital expenditures is always going to be part of our allocation, number one. So we're always going to reinvest back in the business first. But the dividends, the M&A not a big piece of the pie. And then share repurchase obviously the second largest after capital expenditures. This is without Metavante, without the recap done in 2010.

The deals that we've done, you can see this is the template we use, building, buying, acquiring to build scale, acquiring to get product capability, acquiring to get into new markets. So if you want to enter a market, particularly outside of the States, or an adjacency in the States, we'll do acquisitions. Have done acquisitions historically. Competitive positioning. Think about that, if you have a chance to take out a competitor and combine, you're certainly going to do that. And then international, we have had a focus on growing internationally. We still think international is going to have a higher growth opportunity than North America. So these are the kind of deals we have done over the last four years.

Going forward, as Gary pointed out, it's going to be a little bit more focused on we've got the distribution, can we get some products, can we get some products at a little bit earlier stage so we don't have to pay up for the customers that they've got. Because we have a high degree of confidence we can take a product and sell it into our existing relationships.

So again, where are we going to focus? The caveat will always be, if somebody comes along, a competitor, and the numbers are so compelling it's a no-brainer, we would look. But this is where the focus is going to be. This is the expectations for the next four years on where we're going to spend our cash flow. Focused on buying product. Again feed the distribution channel, feed the customers, drive more share of wallet. We'd like to build, but sometimes it's faster, cheaper to acquire, whether it's speed to market or just somebody's innovated something that we have not. And then obviously if you can buy a product, get into adjacency and expand into something you don't have today, we would continue to look at that.

The financial measures, the targets that we use, obviously return on invested capital. It's hard to go out and buy a company, and you saw us looking at some companies in 2011. We looked at a lot of companies in 2011 of all different sizes. We struggled stroking a check for a company, and then adding the inherent risk that an acquisition creates. When we looked at where investing in ourselves would drive a much higher return. So we always look at deals in context to a risk-free return that we can drive internally. Obviously the business model, the deal you look at. We look at accretion. In a stub year it's always a little challenging to get accretion. You obviously can take a big dilutive hit. But obviously we want to get accretion quickly. Generally for the first full year of an acquisition we would like to be accretive. A large acquisition has to be accretive, obviously, otherwise the numbers are too difficult.

And then, just to give you a sense of the size. This is a little smaller than we have been doing. Again it's focused on product companies, early stage. It's not worried about building a company. We've already built the company. But we will buy smaller companies to drive products.

So this is how we would view our use of cash. And again, projected operating cash flow over the next four years is $5 billion. So $5 billion of cash allocated in this fashion starting at 12.00. Capital expenditures, reinvesting in our Company, reinvesting in product, reinvesting in infrastructure, reinvesting for growth, obviously is going to be number one. Debt repayment -- we've got some mandatory debt in 2012, mandatory debt in 2013. So we've got a couple years of debt repayment. If you take the mandatory debt repayment and the growth of EBITDA you get to a ratio that's well within that range we've outlined.

Dividends we talked about. Or you saw, I'm sure you all saw $0.20 going to $0.80 that we announced yesterday. And then share repurchases. We went to our Board and said we want a commitment to buy shares in the market over the next four years. We had some dollars remaining on our existing -- about $360 million remaining on our existing authorization. So we took that out and got a $1 billion authorization. Our expectation is to use that over the next four years. It's not to be a one-time deal. It's to go out and, over a period of time, be buying back shares in the marketplace. And then the green, the darker green, a fairly significant level of additional capacity. We could pay down debt. We could make additional capital investments. Capacity to increase our dividend over time. And potential opportunity to repurchase shares. As well as, that's where we'll be doing our M&A out of that bucket.

Capital expenditures over the last couple years, you saw this when we did the 2011 results. We're spending about 6% we've dropped down about 5% of total revenue. The only thing I'll point out on that, this is the opportunity to scale and leverage what we have. The amount we're spending on a single platform is actually going up. When you take out some of the platforms we've taken out. So our spend in total as a percent of revenue is coming down. But the amount of investment going into individual products actually goes up. And then, again, a couple areas. Reinvestment, particularly going back into '12. We're putting some additional dollars into infrastructure, specific information security going into the 2012 budget that we allocated some more dollars.

The balance sheet, I talked about this. If you look at the 2012 payments that we have, and you look at our growth of EBITDA, you get down to about 2.5 turns by the end of this year. If you look at our payment that we have due on our debt in 2013, look at the growth, we'll be well within the 2 to 2.5 range by the end of '13.

The dividend -- it ends up being about a 2%-- 2.8% yield, at least as of last Friday. I think we took about $29 a share, it's a 2.8% yield. And obviously we targeted a little bit higher than the S&P average. I suspect the S&P average is going to go up a little bit. But our discussion with our Board was pretty strong around the confidence we have in our business model. The recurring revenue, the ability to generate earnings, the ability to generate cash flow. And the ability, even if the market turns challenging for us, that we'll continue to drive that cash flow. That we can have the confidence to commit to a dividend going forward. And you can see where that comes out in the scale. The share repurchase -- got a $1 billion authorization, replaces what was left of the $500 million which we had authorized last fall. We do expect to do that over that four-year period, so it's not going to be jump out in the market and do a single repurchase. So you can think of that pro rata over approximately that four-year window.

Frank started with this slide. Hopefully by the end of the slide you'll agree with our thesis of why invest in FIS. The market leader. I think the executives did a nice job. The thing about market leader isn't about just being the leader. It's not about getting the deals. It's about getting access to every deal that gets done in the marketplace. So you can knock on the door, you can pick up the phone, you can call and say -- I'm from FIS -- and you can get an audience. And you can get an audience that will listen. And if you go talk to some of the other guys who we compete with who aren't the leaders, who might be smaller, ask them how hard it is to get in that door. Once you get there, it makes business a lot easier to conduct.

The recurring revenue stream, again, even in a challenging market we're very confident that our revenue is going to continue to grow and it's going to continue to enable us to drive earnings and cash flow on top of that. EPS growth -- so not only top-line growth, focus on getting some more leverage out of our cost structure. Cash flow -- those of you who have been following us for a number of years, five years ago our ability to translate our earnings into cash flow wasn't that good. It's been very strong the last couple years. We would fully expect it to continue to be strong going forward. And then, again, what we've announced with the dividend and the share repurchase. Taking some of that cash flow and giving it back to our shareholders in the form of dividends and repurchase.

So that concludes our Investor Day update. Again, I'll just echo what Mary said. We did things a little different this year. So we combined our fourth quarter earnings with Investor Day so we could give you the results of last year, give you the outlook for '12, give you our long-range strategy and plans. But any comments or feedback, please get them back to us. So we're going to open it up. I think we've got about half an hour for Q&A.

David Togut with Evercore Partners. Two questions. First, related to margins. You highlighted the rapid growth of the services business which includes some lower margin, more labor intensive businesses like Capco. How do you reconcile the fast growth from that business with your desire to achieve 32 basis points of margin expansion annually?

It's a good question. You have to understand why we did Capco. At the end of the day, when you look at Capco's presence in Europe and you look at Capco's presence in North America, and you look at the strategic relationships they have in that LFI community, what we're driving with Capco is really large transformational deals. RBC would be a great example of that. So there's an example where Capco brought in solution expertise, helped define the problem and the transformation. We were actually able to come into that engagement and provide a breadth of services at very nice margins for us. So it's back to the majority of our services business. At the end of the day, Capco is $300 million out of a $5.7 billion Company. So at the end of the day, the services that we're bringing wrapped around our products are coming in at much higher margins. And it's that differentiation, bringing that intellectual property to bear that allows us to do that. So, really, they're getting our foot in the door that actually allows us to build that higher growth services business.

David, the other thing I'd point out is reset the margin level from '10 to '11. And again, we did it with a couple different things. One is that all the other than intangible amortization, everything else is embedded in that number. And then on top of that, when we talked about '11, heading into '11 at the December 2010 Investor Day, we said Capco's going to come onboard. Here is a strategy for what Capco is going to help us do, which is what Gary just described. But that's going to have an inherent lower margin. But now that you have the '11 baseline going forward, professional services isn't going to be our Company going forward. It's going to allow us to do some things, particularly in the consulting side, that we haven't been able to do before in the large institutions and the international institutions. But we're still going to have the base of our business come from our processing and our operating revenue streams.

Just a second question on competition. Total System Services has indicated that they intend to make an aggressive push in the community bank and credit union market in terms of card issuer services. They also want to expand their footprint in Brazil from Carrefour in the private label side into more general purpose credit card issuer services. Have you seen them enter those two markets yet? And what sort of countermeasures do you have in mind?

We see all of our competitors, but in fairness, we've not seen them in a material way in those two markets yet. The reality is you have to understand what you're saying. And it's back to that market positioning. So if you want to get into the credit card processing business and community markets, you're dealing with institutions that on average are going to issue less than 10,000 cards, right? You're also going to deal with institutions that are going to need a full-service platform. What I mean by that is the ability to underwrite those things, board those cards, deal with cardholder concerns 24/7. It gets very difficult to build a business model out on that one customer at a time. Today we have almost 3,800 clients in that market space. So we're able to do that and serve that market back to our scale because we look at that as a unified portfolio. So I would tell you that's a very difficult market, community markets, to enter if you don't have scale. Or unless you're really prepared to go for a very long time and through organic growth, one at a time, pick up 500 cards here, 8,000 cards there. Very difficult to build a business.

When you look at Brazil we're very comfortable with our position there. We're the largest third-party processor in Brazil. We've got long term engagements with our partners. We recently extended some of our back office work we're doing for Santander, as well. So we feel very comfortable in our positions. Obviously, everybody is very focused on Brazil. It's a hot economy. It's a hot market. I always like to laugh and say we were in Brazil for 15 years. So if that's good timing, I guess we'll take it. But the reality is, it took us a long time to build out that market. But we see competition across all of our industries. And we're going to be prepared to compete very hard on the service we provide, on taking care of our clients. And I think you see that bear out in our growth and you see that bear out in our retention of our clients.

And you could see we aren't stopping, right? We keep building on our scale and our size and our reputation.

Thank you.

Dave Koning, Baird. First, just to focus on some of the big clients. I think BofA and Bradesco reach about 5% of revs. M&I is maybe 2%. When we look out longer term do you expect these to continue to grow within your guidance? And maybe you can talk about how long these are locked up for. And any risks just thinking about over the next couple years.

BofA is not that large of a client for us. Obviously, Bradesco JV, it's a large relationship we have down there. It's a very unique relationship. I think we're very confident in terms of the agreement we have, not just the commercial relationship but also the partnership in the JV. M&I/Harris/BMO, we've talked about that in the past. That the combination of M&I and Harris, you think about 1 plus 1 equals 2. They will not equal 2 for us, it will be less than 2. Somewhere between 1 and 2 will be the ongoing revenue stream. We continue to work with them. I think we have a great relationship. We have a great relationship at a senior level. And they've got a path they are going to go on. We've got products on both sides so core, they are going to end up on our core, they are going to have a single-core platform versus historically they had split that between the two institutions, Harris and M&I.

But that's something, the timetable for that is going to be towards the very end of '12. We don't expect much impact in '12 from that consolidation of M&I and Harris. We go into '13 there's going to be some revenue impact, but with our contract and our term fees we think we'll be able to preserve all the earnings from that relationship going into '13. So now you're back into '14. We knew about this at the end of '10. So our expectations, we will have grown through the impacts by the time we get to '14. And Bradesco is a very nice relationship. As they grow we grow. It really is a win-win and allows us to expand in Brazil.

Yes, and that contract has a number of years left on it. But you have to understand the strategic relationship there. One, as I shared with you in some of my prepared remarks, the largest single payment implementation in Brazilian history went on there, leveraging onto our platform. The efficiencies they were able to gain. Then it can get into the labor issue around unions in Brazil, the ability to outsource that function is very beneficial to us. So it's very strategic. They were able to increase their growth in credit card deployment. They were able to lower their overall costs. And we were able to provide a superior end-to-end service. Also, people seem to forget, when you look at our JV, we've got a number of other clients on that joint venture, as well, that are true commercial clients. So very strategic relationship. Several years left on that contract.

Thank you.

Ashwin Shirvaikar, Citi. I had a comment. I think you said that you don't have conversations about licensing software any more. Could you give us the background on what has license software been as a percent of revenue historically? What's been the revenue growth in margin profile? And as you go more from just selling software in that 5%, 6%, 7%, 10% of your business to wrapping services around it, how do you see implementation and the accounting of it affecting the numbers?

I'll just talk to the numbers side. I think software is around 3% of our revenue last year. It's been trending down. I don't think, when Gary talked about the conversation, software, some parts of the market that's what the business is and we still sell software. I think if you look at the predominance in community banks, which used to be split, has almost all shifted towards outsourcing. So the institutions no longer want to take software and build up their own infrastructure, manage their own data center, hire their own people. We'll continue with software, it's not a big piece of the pie. There are services which, as you get to the 5% or 7%, services you wrap around the software are how you get bigger than the 3%.

But I think going forward, we expect that number to stay in that range. It's not going to move a lot. When it comes on, software is one of those businesses that when it comes on, the quarter you sell it, it's basically 100% margin. So it's a wonderful thing that quarter. Software as a long-term business in our industry, because you put a lot of investment to build a product, to enhance a product, and it's almost a cycle. It's a window of time where you get it out, you get it implemented, and then you're living on a maintenance stream and service stream. And you're not making money on intellectual property. So that's why we would prefer people sign up for a long-term arrangement to process or to host or pay clicks on that and not a license fee.

And just to clarify my comments and build on some of Mike's, what I was talking about was in the sales force. When you look at the buying habits, as Mike said, in that less than $10 billion market, very little software activity. Typically where we have software sales now it will be with a client that we formerly sold software to in the past. So our net new wins, our growth, is really all coming through that outsourcing side. And because of the economy and other things, we're seeing that trend come into the large FI and international markets where those larger institutions were typically biased to license and run it themselves. They are now asking themselves the question, what's the differentiator in me owning the data center. What's the differentiator in me leveraging it. So obviously, we're seeing most of our conversations in our sales engine going towards that deployment method.

Understood. The second question I have is around M&A. And as you do mainly tuck-in acquisitions now, are there specific areas where you see a need to go acquire versus partner? What areas might those be?

Gary, maybe you can explain some of the things we've done in the last couple years where we saw an opportunity to get some technology. Sometimes it was somebody we had partnered with, sometimes it was just an opportunity. And it will be things like that going forward.

Yes, I think, honestly, we're not going to comment on what some of our perceived gaps are in the future. That doesn't make a lot of sense for us. We're very comfortable, when you start looking about some of the emerging technology, some of the innovations going on with next generation payments, some of the interesting channel deployments out there. There's also some interesting ways to drive benefits for our customers, financial institutions, to retain clients. So we're looking at a lot of different areas. But to Mike's point, we've been very strategic with our acquisitions. Hopefully timing, and in time for the inflection point. Compliance Coach is a great example of that. We talked about that. We saw the pending regulatory change. We saw all of the discussions, made the acquisition ahead of that curve, and then are riding through that regulatory curve.

We're doing it also when you start looking at some of the international money movement given our global presence, and given some of the things that are going on to more efficiently move money. And so you look at the GIFTS acquisition. Once again, small tuck-in, being able to deploy it across 650 institutions. So at the end of the day, those are the kind of things we're looking for. When we are looking for acquisitions, we're looking out a year, two, three years out, of where we think the market is going to go. And we want to time those acquisitions appropriately. As Mike shared with you, we prefer to build. Let's just be real clear about that. And we do a lot of internal building that we're very proud of. So if there are times when we aren't able to build it fast enough because we see an inflection point or what we think is going to be the inflection point, then we'll do a nice product acquisition and roll it through the distribution channel appropriately.

Last quick modeling question. On the buyback, the $1 billion buyback, I see a share count number in here. Was that the average share count or year-end share count for the 295? And is that the pace at which you might expect to do the buyback for the next couple of years?

You're talking about '11, the 295? Oh, that's the average for '12.

Barton Hooper with the Weitz Funds. Just a question on your sales coverage. You've got, I think you said, 300 products, 600 salespeople, 14,000 clients. Do you have enough coverage to get the wallet share that you want? I realize it's skewed by a lot of the community banking. But for some reason it seems light with 33,000 employees.

It's a great question. Frankly, we've gotten a lot of efficiencies out of our distribution channel. If you look at traditionally where our competitors will house those organizations, is they will house them under the business lines. Which is a very inefficient process. So what we've done is we've picked those sales resources up and put them across the enterprise of the entire Company. And then we've invested heavily in our subject matter experts. So we're driving those people to get the doors open to then allow our subject matter experts to come through and sell appropriately. So it's a very efficient model.

I have to warn people. It's a very time-consuming model to implement. We started this almost eight years ago. And so we've built that model every year, building it out. What you're seeing is the efficiencies that we gained through it, as well. And I'd also point back to historically, every year we've had record sales from the standpoint of new sales. Net new revenue into either our existing customers or new clients. So we feel very comfortable with it. We continue to evaluate various markets, as I shared with you. The LFI market we saw back in late '10. We saw that there was going to be a real opportunity as the economy started to recover and we needed to focus there. So we moved resource into that. But as I said, we saw no degradation in the community sales engine, as well. So we were very pleased with that result. And that nimbleness is what allows us to be competitive with those number of resources.

And I think over the year we've proven that we get the business units to work together with the sales force is one, And that takes a while, but that's working very well for us. Can we do a couple people waiting a long time up here to ask questions?

Thanks for the updates. It's really helpful. It's Tien-Tsin Huang from JPMorgan. I just want to ask about the payment services segment. I was a little surprised that the revenue growth would be a little bit down low single digits for next year. What's driving that? Is it all check or is there another change in the growth factors there? Maybe if you could also give us an update on debit while you're at it.

Sure. At the end of the day we do have some headwinds in that business. We have a pretty substantial check business that resides there. We continue to see serious declines in check volume, not only our point-of-sale business but also our back office business. The good news about our back office business is we have successfully migrated that to more of an electronic from more true paper handling. So we've actually seen our margins stabilized and starting to grow. But we're still seeing a revenue headwind on that business, as well as our retail-oriented businesses. So that's the primary thing that's holding back the payments business. We also had some grow-over issues in a couple of the products. And those are actually annualizing out. So, really, going into 2012, the main thing that's holding it back is going to be the paper-based businesses.

Let me just add. I don't know if everybody fully understands. Our PSG payment solution group segment, if we look at last year it was about a 2% to 3% spread between paper and reported. That's what it's been running. So low single digits, add a couple points to that, you're going to get closer to mid single on the electronics side. So the paper is a defined headwind that we've been sharing with you guys.

The other thing to keep in mind, if you look at our PSG compared to our closest competitors' PSG, and I've said this before, they stole the label but then they got the components wrong. So if we take out item processing, which is in our PSG, it's not in theirs, push it over to FSG -- Anthony is going to love us for this -- and then you take E-banking which is in their PSG, not in ours, I think you're going to see that our numbers are going to be -- I know Frank D'Angelo used to send me an e-mail every year showing me that our numbers were better than their PSG numbers. I haven't done the math yet but I suspect it would be the same this year. So you can't really compare those two. Our payments, for all the reasons we've talked about, they've done a great job of driving the earnings and keeping the margin very solid, as Gary pointed out, it's a different collection than everybody else out there.

Greg Smith with Sterne, Agee. Mike, just back to PSG. The margin in 4Q stepped up quite a bit year-over-year. Was there anything unusual in that?

Yes, there's always some timing things that will hit a quarter. We try to get you guys not to look per se at a quarter versus the full year. We looked at what popped it. I don't think the margin's going to step up for the full year like that. But we are pleased with the finish to the year.

Okay. And then from all your comments, should we interpret it definitely as Misys is off the table, because it doesn't fit?

It was pretty well-documented. Unfortunately because of the UK takeover law, you disclose something you look at before it would normally be disclosed. And it's shared with people. We've looked at a lot of companies the last couple of years. We started looking towards the end of '10. And we just can't get comfortable with other things out in the market, whether it's the company, the business, the execution, the products, the price. And so, no, Misys was not on the table.

We're very prudent about what we do. You know that, at the end of the day. And the last large one we did was Metavante.

Then just lastly, when we look at that competitive landscape slide, the elephant in the room to me is IBM. They're missing in some key areas that you or another core processor could fill in. Do you expect IBM to make an acquisition of a core processor potentially?

We have the internal debate. And there's some names on there. People we compete on the periphery. Oracle is active out there in the market, particularly internationally. SOP's tried to bring some core products to the States. IBM has always tried to be product agnostic. Accenture has tried to be product agnostic. We have a strong belief that at the end of the day you have to have the assets, you have to have the technology to win and to compete because that's what differentiates you. And then as we continue to do more and more what they can do, it's hard for them to do what we can do. So what their strategies are, we're not that smart.

We like our future the way we are today, and we're very comfortable with what we're doing.

Kartik Mehta with Northcoast Research. Gary, in your presentation you said you were able to raise prices in certain areas. Could you talk about maybe what those areas are and what percentage of the Company that might be?

We're starting to see so much demand in some of our professional services engagements. It really is supply and demand. There's a lot of demand for high-end resources and these transformation services, many of which Capco delivers. But in the LFI space, we're seeing an increased demand for implementation services, transformation services, building out releases and product functionality. And so, yes, we're seeing where we have the ability and have increased some of our professional services fees in those areas. Because simply the supply of that particular type knowledge is not enough to meet some of the demand. So we're actually investing in those areas, we're hiring more people in those areas, we're training people in those areas. But it's primarily been professional services. All in all, it's a pretty small percentage of our business. But we do see continued growth in that area. And the point being, when we're seeing that growth that high, we have the ability to implement price increases appropriately. And we've done that.

And then just the impact on your debit business now that the Durbin Amendment has been implement, what you anticipate from your customers. And maybe what's happening now and what you anticipate going forward.

Honestly, we've seen an impact on our debit loyalty business, to be clear. A lot of people are struggling with how to make loyalty work across the debit cards. We actually saw some nice benefit in our network business because of the dual network requirements. Really saw that, I would tell you, in the mid tier marketplace, more than the absolute top 5, top 10 marketplace. But saw strong demand in there. And we've still got a number of key clients we're looking to sign up. So net-net, as we've shared with you on past calls, we think Durbin will be net-net neutral to slightly an improved situation, and we see no reason to change that. So, as I said, good area of growth in the network. Good stability in our debit, and so it hasn't been an impact for us.

Glenn Greene with Oppenheimer. I wanted to follow-up on Greg Smith's question. Clearly a pretty big change in strategic focus here of going more to building as opposed to buying. Obviously that's been the legacy of your Company. You clearly looked at the Misys acquisition mid year. So I was just looking for a little bit more color on what happened, the change in thinking. You're obviously setting a new tone for the Company from a growth perspective going forward. So maybe a little bit more background behind the thinking on that change.

I think we touched upon this. It's really a combination of two things. One is, we simply don't need to buy that next piece per se. So if you look at where we're at -- and Gary did a nice job of covering the globe, we cover the markets we want to be in with relationships, with customers, with distribution, feet on the street. And we've got products that fit in the markets we need to be in. And to the extent that we need new products we'll build or acquire product companies.

I think the second point is, again, Misys, was very visible. We've talked about we've looked at other companies. The price to continue the M&A when you don't have to do it, it doesn't get us the return. So we went out in the market and looked and said it would be great if we could buy some companies, maybe some overlap, maybe some adjacencies. And then we know better, we think we're better than anybody else. We've demonstrated the ability to merge and integrate an operating company. But you also have risk. So we understand the risks inherent in that. And in between the risk and what we perceived to be what people are looking for to get out, we simply don't want to be in that game anymore.

To reinforce, if you look at our products today globally, and you look at our distribution channels globally, we clearly do not have to do significant acquisitions anymore. And as Mike well put it, why would you pay up for acquisitions when you already have solved those things. And you spent the last 12 years or so doing that. And that's the position we're in.

Yes, I'll just chime in, as well. At the end of the day, we build our acquisition strategy off the people in this room and off our sales channels. And at the end of the day, the best acquisition is one generated out of the business lines, because there's an identified need. Or generated out of your distribution channel for identified need. There are going to be product acquisitions that are going to be identified that make sense. But paying up for a very large overlapping acquisition is not being driven out of our leadership team at the moment. And so, as Frank mentioned, as I mentioned, Mike mentioned, we listened to the people in this room. This is who drives the Company. And so, at the end of the day, making sure we give them the tools they need to compete is what's important for us. And so, at the end of the day, we're very comfortable in the markets we serve today. Which is very important to understand the markets we serve. But in those markets we serve, very comfortable with our product suite. And this team is not telling us at all that we lack the scale to compete, that we lack the product to win and growing the business.

And then different direction related to Capco. You obviously had the large client loss at the beginning of the year. How did Capco end up from a growth perspective in '11 And directionally expectations for growth and margin expansions related to Capco for '12?

For growth, the US -- really got hit by that large client -- US was a little bit slow. Europe was I think 80% growth, 75%? Europe was very strong growth. Combined I think we're still in the 30%, 25%-ish organic growth versus where they ended up in '10. So they still had a very solid year. Again, the one client got cut their government financing and so they went out. But when we look at where they ended the year, again we had that client cut back right at the beginning of the year, made a decision we thought we could redeploy fast enough to maintain margin. It didn't work out. So we look at the fourth quarter and where we're operating, we feel pretty good about where it sets up for '12.

I would add to that though, again, Rob and team have to focus on running their business like every other business unit owner in this room. They all have a budget, they have a plan, they get paid to make their number. But with Capco, in addition to making their number, Frank and Gary have been involved in these deals where they walk into a CEO or a CIO or the head of an institution and they're talking about a different operating model, a different business. And it's led by -- Let's start with how you can think of the world differently. So RBC was a good start in that direction because it's a totally different business model for them in the States. But the discussions and dialogue we've had continue to be positive, from our perspective, on how that sets up to getting some opportunities in the future.

And while most of these large banks that we go out to globally, Capco already has a relationship and a reputation, a very positive reputation, which helps us and Capco.

Are you expecting double-digit revenue growth from Capco in '12?

Absolutely.

That would be correct.

Yes, they did a nice job growing through their losses, their customer as Mike said. Ended up the year strong. We see margins returning to where we originally expected as part of the deal. Conversations between our distribution channel and our client management group, and there's has never been stronger. So we're still very excited about the acquisition and why we did it.

And Rob and his senior leaders are very optimistic about the future.

We've got time for one more question.

I don't know how this impacts you long term but it seems like in-memory database, big data, those types of conversations, does it make it more difficult or easier for clients that do things in-house to keep that business in-house? Does technology make it a harder sell for you?

Of course you're talking to Mike and Gary who are the most technical executives in the industry. I would say any new technological innovation that's going to hit the industry -- so the very big guys, it's really not about buying the technology, buying the hardware, any more. It's about buying new people and the expertise. So the big guys who go out and do that, but where the big guys stop? Is it after the top four or five? Is it after the top 10? There's a line there that becomes a pretty sharp demarcation. People can't go out and hire the expertise to do the latest and greatest technology. Think about walking in to them and say -- We can give you the benefit of having better data warehouse and better access, better information, better analytics, and do it cheaper, and have it focus on solving your business problem. It's hard. We compete against the CIO trying to build out infrastructure, and I think we win those debates these days.

Okay. With that, I think Frank wants to make a few closing comments. And then I'll follow with a few housekeeping items before we move on to the next portion.

First of all, I want to thank the investment community for being here today. For those of you who made the trip, really appreciate it. I know it's a lot of valuable time. And I hope you find it valuable to you. The second, for the shareholders in the room, we thank you for your confidence in us. For those who are thinking of investing in us, hopefully we gained a little bit more of your confidence today. And for those of you who cover us, thank you for your coverage on FIS. We really appreciate it.

I think it's an interesting experience when you have three people standing up here, talking with the confidence we do about our Company that's our size. And saying things about the future and how we feel about it. We say with confidence for just simply one reason. We have 300 leaders behind us with the same confidence and passion that we do for this Company and our clients. And they have 30,000 people behind them with the same passion and confidence. That makes us feel good. That makes us totally confident that we can deliver and we'll continue to. We are very passionate. We are very excited about this Company. We know we have a great future. We would like you to be a part of it and have the same enthusiasm and passion that we do.

Thank you for sharing your morning with us. We appreciate it. Thank you.

Just a reminder to our investors and analysts. Please fill out the survey that is on the table in front of you. For those of you listening via Webcast, we will e-mail that survey to you and would appreciate your input on today's event, as well. Now, I would ask most of our leadership team to remain seated so that we can escort our guests to the topic table reception. And the topic table facilitator should exit to the Crystal Ballroom now, as well. Thank you very much.