GAAP revenue growth of 4 percent and internal revenue growth of 5
percent;

GAAP EPS decrease of 44 percent and adjusted EPS increase of 12 percent;

Full year 2019 guidance affirmed

BROOKFIELD, Wis.–(BUSINESS WIRE)–Fiserv, Inc. (NASDAQ: FISV), a leading global provider of financial
services technology solutions, today reported financial results for the
first quarter of 2019.

First Quarter 2019 GAAP Results

GAAP revenue for the company increased 4 percent to $1.50 billion in the
first quarter of 2019 compared to the first quarter of 2018, with 9
percent growth in the Payments segment and 3 percent decline in the
Financial segment. The sale of a 55 percent interest of the company’s
Lending Solutions business (the “Lending Transaction”) in the first
quarter of 2018 resulted in a decline in GAAP revenue in 2019 for the
Financial segment.

GAAP earnings per share was $0.56 in the first quarter of 2019,
decreasing 44 percent compared to the first quarter of 2018. GAAP
earnings per share in the first quarter of 2019 included costs of $0.16
per share related to the previously announced merger agreement to
acquire First Data Corporation. GAAP earnings per share in the first
quarter of 2018 included a gain of $0.37 per share on the Lending
Transaction.

GAAP operating margin was 24.8 percent in the first quarter of 2019,
compared to 42.2 percent in the first quarter of 2018. GAAP operating
margin in the first quarter of 2018 included a $232 million gain
resulting from the Lending Transaction.

Net cash provided by operating activities was $373 million in the first
quarter of 2019 compared to $372 million in the first quarter of 2018.

“We are off to a strong start to the year, with first quarter internal
revenue growth and sales ahead of our initial expectations,” said
Jeffery Yabuki, President and Chief Executive Officer of Fiserv. “In
addition to strong financial performance, we are well into integration
planning and looking forward to completing the First Data acquisition in
the second half of the year.”

First Quarter 2019 Non-GAAP Results and Additional Information

• Adjusted revenue increased 5 percent to $1.43 billion in the quarter
  compared to the prior year period.
• Internal revenue growth for the company was 5 percent in the quarter,
  with 4 percent growth in the Payments segment and 6 percent growth in
  the Financial segment.
• Adjusted earnings per share increased 12 percent to $0.84 in the
  quarter compared to the prior year period.
• Adjusted operating margin was 31.9 percent in the quarter compared to
  32.5 percent in the prior year period.
• Free cash flow was $302 million in the quarter compared to $316
  million in the prior year period.
• Sales results were up 10 percent in the quarter compared to the prior
  year period.
• The company repurchased 1.6 million shares of common stock for
  $120 million in the quarter prior to the announcement of the First
  Data Corporation transaction, as described below. The company has
  deferred additional share repurchase until the close of the
  acquisition. As of March 31, 2019, the company had 24.3 million
  remaining shares authorized for repurchase.
• On April 18, 2019, Fiserv shareholders approved the issuance of shares
  in connection with the First Data Corporation transaction with more
  than 99 percent of the vote in favor of the action.

Agreement to Merge with First Data Corporation

On January 16, 2019, Fiserv announced that it had entered into a
definitive merger agreement to acquire First Data Corporation in an
all-stock transaction for an equity value of approximately $22 billion
as of the announcement. The transaction is expected to close during the
second half of 2019 subject to customary closing conditions and
regulatory approvals.

Outlook for 2019

Fiserv continues to expect internal revenue growth in a range of 4.5 to
5 percent for the year. The company also expects adjusted earnings per
share in a range of $3.39 to $3.52, which represents growth of 10 to 14
percent, as adjusted for the Lending Transaction. The company’s outlook
for the year does not include any impact related to its proposed
transaction with First Data Corporation.

“Our strong start to the year has us well positioned to meet our
full-year financial commitments,” said Yabuki.

Earnings Conference Call

The company will discuss its first quarter 2019 results on a conference
call and webcast at 4 p.m. CT on Tuesday, April 30, 2019. To register
for the event, go to fiserv.com
and click on the Q1 Earnings webcast link. Supplemental materials will
be available in the “Investor Relations” section of the website.

About Fiserv

Fiserv, Inc. (NASDAQ: FISV) enables clients worldwide to create and
deliver financial services experiences in step with the way people live
and work today. For 35 years, Fiserv has been a trusted leader in
financial services technology, helping clients achieve best-in-class
results by driving quality and innovation in payments, processing
services, risk and compliance, customer and channel management, and
insights and optimization. Fiserv is a member of the FORTUNE^®
500 and has been named among the FORTUNE Magazine World’s Most Admired
Companies^® for six consecutive years, recognized for strength
of business model, people management, social responsibility and
innovation leadership. Visit fiserv.com
and follow on social media for more information and the latest company
news.

Use of Non-GAAP Financial Measures

In this earnings release, the company supplements its reporting of
information determined in accordance with GAAP, such as revenue,
operating income, operating margin, net income, earnings per share and
net cash provided by operating activities, with “adjusted revenue,”
“internal revenue growth,” “adjusted operating income,” “adjusted
operating margin,” “adjusted net income,” “adjusted earnings per share,”
“adjusted earnings per share, as adjusted for the Lending Transaction
impact,” and “free cash flow.” Management believes that adjustments for
certain non-cash or other items and the exclusion of certain
pass-through revenue and expenses should enhance shareholders’ ability
to evaluate the company’s performance, as such measures provide
additional insights into the factors and trends affecting its business.
Therefore, the company excludes these items from GAAP revenue, operating
income, operating margin, net income, earnings per share and net cash
provided by operating activities to calculate these non-GAAP measures.
The corresponding reconciliations of these non-GAAP financial measures
to the most comparable GAAP measures are included in this earnings
release, except for forward-looking measures where a reconciliation to
the corresponding GAAP measures is not available due to the variability,
complexity and limited visibility of the non-cash and other items
described below that are excluded from the non-GAAP outlook measures.
See page 13 for additional information regarding the company’s
forward-looking non-GAAP financial measures.

Examples of non-cash or other items may include, but are not limited to,
non-cash deferred revenue adjustments arising from acquisitions,
non-cash intangible asset amortization expense associated with
acquisitions, non-cash impairment charges, severance costs, charges
associated with early debt extinguishment and bridge financing costs,
merger and integration costs, certain costs associated with the
achievement of the company’s operational effectiveness objectives, gains
or losses from dispositions and unconsolidated affiliates, and certain
discrete tax benefits and expenses. The company excludes these items to
more clearly focus on the factors management believes are pertinent to
its operations, and management uses this information to make operating
decisions, including the allocation of resources to the company’s
various businesses.

Internal revenue growth and free cash flow are non-GAAP financial
measures and are described on page 12. Management believes internal
revenue growth is useful because it presents revenue growth excluding
acquisitions, dispositions and the impact of postage reimbursements in
the company’s Output Solutions business, and including deferred revenue
purchase accounting adjustments. Management believes free cash flow is
useful to measure the funds generated in a given period that are
available for debt service requirements and strategic capital decisions.
Management believes this supplemental information enhances shareholders’
ability to evaluate and understand the company’s core business
performance.

These non-GAAP measures may not be comparable to similarly titled
measures reported by other companies and should be considered in
addition to, and not as a substitute for, revenue, operating income,
operating margin, net income, earnings per share and net cash provided
by operating activities or any other amount determined in accordance
with GAAP.

Forward-Looking Statements

This news release contains forward-looking statements within the
meaning of the Private Securities Litigation Reform Act of 1995,
including statements regarding anticipated internal revenue growth,
adjusted earnings per share and adjusted earnings per share growth.
Statements can generally be identified as forward-looking because they
include words such as “believes,” “anticipates,” “expects,” “could,”
“should” or words of similar meaning. Statements that describe the
company’s future plans, objectives or goals are also forward-looking
statements.

Forward-looking statements are subject to assumptions, risks and
uncertainties that may cause actual results to differ materially from
those contemplated by such forward-looking statements. The factors that
could cause Fiserv’s actual results to differ materially include, among
others: the possibility that Fiserv and First Data Corporation may be
unable to achieve expected synergies and operating efficiencies from the
proposed merger within the expected time frames or at all or to
successfully integrate the operations of First Data Corporation into
those of Fiserv; such integration may be more difficult, time-consuming
or costly than expected; revenues following the transaction may be lower
than expected, including for possible reasons such as unexpected costs,
charges or expenses resulting from the transaction; operating costs,
customer loss and business disruption (including, without limitation,
difficulties in maintaining relationships with employees, customers,
clients or suppliers) may be greater than expected following the
transaction; the retention of certain key employees; the occurrence of
any event, change or other circumstances that could give rise to the
termination of the merger agreement; the outcome of any legal
proceedings that may be instituted against Fiserv, First Data
Corporation and others related to the merger agreement; unforeseen risks
relating to liabilities of Fiserv or First Data Corporation may exist;
the conditions to the completion of the transaction may not be
satisfied, or the regulatory approvals required for the transaction may
not be obtained on the terms expected or on the anticipated schedule;
the amount of the costs, fees, expenses and charges related to the
transaction, including the costs, fees, expenses and charges related to
any financing arrangements entered into in connection with the
transaction; the parties’ ability to meet expectations regarding the
timing, completion and accounting and tax treatments of the transaction.
Fiserv and First Data Corporation are subject to, among other matters,
changes in customer demand for their products and services; pricing and
other actions by competitors; general changes in local, regional,
national and international economic conditions and the impact they may
have on Fiserv and First Data Corporation and their customers and
Fiserv’s and First Data Corporation’s assessment of that impact; rapid
technological developments and changes, and the ability of Fiserv’s and
First Data Corporation’s technology to keep pace with a rapidly evolving
marketplace; the impact of a security breach or operational failure on
Fiserv’s and First Data Corporation’s business; the effect of proposed
and enacted legislative and regulatory actions in the United States and
internationally affecting the financial services industry as a whole
and/or Fiserv and First Data Corporation and their subsidiaries
individually or collectively; regulatory supervision and oversight, and
Fiserv’s and First Data Corporation’s ability to comply with government
regulations; the impact of Fiserv’s and First Data Corporation’s
strategic initiatives; Fiserv’s and First Data Corporation’s ability to
continue to introduce competitive new products and services on a timely,
cost-effective basis; the ability to contain costs and expenses; the
protection and validity of intellectual property rights; the outcome of
pending and future litigation and governmental proceedings; acts of war
and terrorism; and other factors included in “Risk Factors” in Fiserv’s
and First Data Corporation’s respective filings with the SEC, including
their respective Annual Reports on Form 10-K for the year ended December
31, 2018, and in other documents that the companies file with the SEC,
which are available at http://www.sec.gov.
You should consider these factors carefully in evaluating
forward-looking statements and are cautioned not to place undue reliance
on such statements. Fiserv assumes no obligation to update any
forward-looking statements, which speak only as of the date of this news
release.

Internal Revenue Growth – The company’s internal revenue growth
outlook for 2019 excludes acquisitions, dispositions, and the impact of
postage reimbursements in its Output Solutions business, and includes
deferred revenue purchase accounting adjustments. These adjustments are
subject to variability and are anticipated to increase 2019 GAAP revenue
growth by approximately 1 percentage point as compared to the internal
revenue growth rate.

Adjusted Earnings Per Share – The company’s adjusted earnings per
share outlook for 2019 excludes certain non-cash or other items which
should enhance shareholders’ ability to evaluate the company’s
performance, as such measures provide additional insights into the
factors and trends affecting its business.

Contacts

Media Relations:
Britt Zarling
Vice President,
Corporate Communications
Fiserv, Inc.
414-378-4040
[email protected]

Investor Relations:
Tiffany Willis
Vice President,
Investor Relations
Fiserv, Inc.
678-375-4643
[email protected]

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