Attached files
| file | filename |
|---|---|
| 8-K - FORM 8-K - FAIR ISAAC CORP | d399600d8k.htm |
| EX-2 - EXHIBIT 2.1 - FAIR ISAAC CORP | d399600dex2.htm |
| EX-99.1 - EXHIBIT 99.1 - FAIR ISAAC CORP | d399600dex991.htm |
 FICO
Acquires Adeptra Extends FICO’s Decision Management Applications With
Real-Time Customer Engagement and Risk Intervention
Exhibit 99.2
Confidential. This presentation is provided for the recipient only and cannot
be
reproduced
or
shared
without
Fair
Isaac
Corporation's
express
consent.
©
2012 Fair Isaac Corporation. |
 2
©
2012 Fair Isaac Corporation. Confidential.
Statement Concerning Forward-Looking Information
Except for historical information contained herein, the statements contained in
this presentation that relate to FICO or its business are
forward-looking statements within
the
meaning
of
the
“safe
harbor”
provisions
of
the
Private
Securities
Litigation Reform Act of 1995. These forward-looking statements are subject to
risks and uncertainties that may cause actual results to differ materially,
including the success of the Company’s Decision Management strategy and
reengineering plan, the maintenance of its existing relationships and
ability to create new relationships with customers and key alliance
partners, its ability to continue to develop new and enhanced products and
services, its ability to recruit and retain key technical and managerial
personnel, competition, regulatory changes applicable to the use of consumer
credit and other data, the failure to realize the anticipated benefits of
any acquisitions, continuing material adverse developments in global
economic conditions, and other risks described from time to time in
FICO’s SEC reports, including its Annual Report on Form 10-K for the year
ended September 30, 2011 and its last quarterly report on Form 10-Q for
the period ended June 30, 2012. If any of these risks or uncertainties
materializes, FICO’s results could differ materially from its
expectations. FICO disclaims any intent or obligation to update these
forward-looking statements. |
 3
©
2012 Fair Isaac Corporation. Confidential.
What We Are Announcing
•
FICO acquires Adeptra
•
Adds a leader in cloud-based customer engagement and risk intervention
•
Transaction expected to be completed by end of September
•
About Adeptra
•
Private company founded in 1996 and based in Reading, UK, and Norwalk, CT
•
Adeptra’s leading SaaS-based platform enables organizations to assess,
decide, act and resolve customer issues in real time
•
50+
marquee
clients
worldwide
across
various
verticals
–
e.g.,
Citi,
Barclays,
Telstra,
Sabre
•
Combination expected to offer first full-cycle decision management
•
Businesses can seamlessly turn decisions into actions that improve fraud
protection, loss mitigation and customer satisfaction, with clear ROI
•
Closed
feedback
loop
reduces
risk
and
improves
decision
management
•
Successful
resolutions
using
real-time,
multi-channel
dialogue
–
voice,
SMS,
mobile
application, email
–
improve
customer
satisfaction
•
FICO will advance clients’
success in the mobile economy by giving businesses the ability to drive
every decision and action to successful resolution through voice, SMS,
email and mobile apps. •
Immediate
synergies
with
FICO
Falcon
Fraud
Manager
and
FICO
Debt
Manager
solutions
•
Adeptra’ssolutions are complementary to FICO offerings
•
Adeptratechnology provides the critical link between smarter decisions and better
results •
FICO and Adeptrasolutions enable a complete learning loop, connecting analytics
with actions •
Proven ROI at joint customers with FICO Falcon Fraud Manager over past 10
years •
Strong client overlap, with high cross-sell and up-sell potential
|
 4
Trends
Implication
Mobile
Explosion
and New
Consumer
Expectations
Increased choice for
customers increases
complexity in choosing
the right medium of
communication with
customers, depending on
their preference
Batch to
Real-Time
New functionality
requirements for
intercepting and verifying
issues in real-time
Customers expect
immediacy and
convenience
New
Regulations
New regulations, such as
those related to credit
limit increases, force
banks to increase
customer
communications
Industry Trends Driving Need For A
Communications and Risk Intervention Platform
Take action,
then inform
$
$
Seek permission,
then act
•
Mobile communications becoming key part of every business’s strategy
•
Customer-centricity and real-time responsiveness are common goals
•
Adeptra’s solution will become increasingly strategic for FICO clients
•
4 billion mobile subscribers worldwide
•
1.8 billion smart phones
voice
voice
sms
sms
voice
online
online
©
2012 Fair Isaac Corporation. Confidential. |
 5
©
2012 Fair Isaac Corporation. Confidential.
FICO and Adeptra Together Offer
Full-Cycle Decision Management
•
Adeptra provides the link between smarter decisions and better results
•
Full-cycle decision management will reduce risk and increase customer
satisfaction
•
FICO solutions assess and decide, but
businesses typically rely on manual or
internal systems to act and resolve
•
Disconnect impairs results and slows
the evolution of optimal strategies
•
FICO + Adeptra solutions complete the
loop, enabling real-time consumer
dialogue, immediate resolution, and a
closed learning loop
Assess
Decide
Act
Resolve
FICO
Adeptra / Others
Today
Assess
Decide
Act
Resolve
FICO + Adeptra |
 6
©
2012 Fair Isaac Corporation. Confidential.
How Adeptra Solution Works –
Card Fraud Scenario
Monitor/
Detect:
Decide:
Assess:
Act:
Resolve:
FICO Fraud
Detection
System
Rule
Rule
Rule
6
•
FICO system
detects possible
card fraud and
engages Adeptra
•
Adeptra builds
case,
combining
internal and
external data in
real time
•
Determine best
treatment
•
Custom rules
guide action; e.g.
platinum-card
holder will
receive specific
treatment
•
Based on history,
preferences and
urgency, medium of
communication is
chosen –
e.g. voice and
if unsuccessful, SMS
•
Consumer contacted
in seconds to verify
activity and unblock
the account
•
Results returned to
bank
•
Happy customer
continues shopping |
 7
How Adeptra Solution Works –
Collections Scenario
Bank System
of Record
Monitor/
Detect:
•
Customers
become
delinquent
•
Batch files
provided to
Adeptra
Decide:
•
Customer
specific
treatment
according to
segmentation
•
Custom rules
guide action
Assess:
•
Adeptra
enriches
customer
information in
real time and
performs
customer
segmentation
Act:
•
Based on history,
expected willingness
and ability to engage,
preferences and
urgency, medium of
communication is
chosen
Resolve:
•
Results returned to
bank in real time
such as; promise to
pay, payment plan,
or actual payment
made
©
2012 Fair Isaac Corporation. Confidential. |
 8
Adeptra Makes it Easy to Stop Fraud and Improve
Payments Using Customer Contact Preferences
Fraud
Resolution
Payment
Plans
©
2012 Fair Isaac Corporation. Confidential. |
 9
Financial Highlights
•
Consistent
revenue
growth
–
22%
revenue
CAGR
from
2008-2012
•
95%+ recurring revenue from existing applications / new signed applications,
providing revenue predictability
•
Loyal customer base with negligible customer churn
•
SaaS-based business model with leverage for growth in EBITDA
Total
Year ended December 30
LTM
2009
2010
2011
2011
2012
6/30/2012
$m -
FYE Dec
Risk Management
10.6
13.8
17.9
8.5
11.6
21.0
Credit Management
20.1
16.9
17.7
8.5
10.8
20.0
Marketing Solutions
0.4
0.6
1.1
0.4
1.3
2.0
PSO
1.2
1.7
1.5
0.8
0.7
1.5
Revenues
32.3
33.0
38.2
18.2
24.3
44.4
Total revenue growth (%)
2.4%
15.7%
33.9%
26%
EBITDA
2.8
1.1
2.9
1.1
2.6
4.5
Total EBITDA growth (%)
-61%
165.5%
145.8%
141%
6 months ended 6/30
©
2012 Fair Isaac Corporation. Confidential. |
 10
Combining FICO decision management with Adeptra’s customer
engagement and risk intervention platform to provide full-cycle decision
management
Creating a positive, direct connection between decisions, actions, and
results
–
closing
the
learning
loop
Enabling businesses to move seamlessly from defining, changing, and
testing decisions to executing and resolving customer interactions
Providing greater flexibility and agility in resolving risk and securing
growth through a SaaS-based offering
Enhancing
our
clients’
ability
to
provide
a
positive
customer
experience, tailored to the communication and channel preferences of
each individual
Accelerating
our
clients’
success
in
the
fast-growing
mobile
economy
Supporting it all with a world-class global services and support
organization
FICO + Adeptra: A Compelling Combination
©
2012 Fair Isaac Corporation. Confidential. |
 11
Confidential. This presentation is provided for the recipient only and cannot
be
reproduced
or
shared
without
Fair
Isaac
Corporation's
express
consent.
©
2012 Fair Isaac Corporation.
www.fico.com/adeptra |