Key facts:

Prioritizes investments for growth, both organically and through mergers & acquisitions (M&A).
Accelerates annual dividend growth rate to 20% per year beginning in 2022 to gradually increase the company's dividend payout ratio to approximately 35%.
Returns excess capital to shareholders through ongoing share repurchase under existing 100 million share authorization.

FIS^®(NYSE:FIS), a global leader in financial services technology, announced an updated capital allocation strategy today that prioritizes investment in the business to drive growth while simultaneously returning capital to shareholders.

"Our priority is to invest in strategic growth initiatives in order to pursue multiple opportunities for both organic and inorganic growth," said Gary Norcross, FIS Chairman and CEO. "We have the financial capacity to simultaneously reward our shareholders by returning capital through consistent dividend growth and our ongoing share repurchase program. Our updated capital allocation strategy reflects continued confidence in the strength of our financial position, the durability of our business model and the future of FIS. By executing this strategy, we expect to drive robust growth and to unlock additional value for shareholders."

As part of its updated capital allocation strategy, FIS will continue to invest heavily in strategic growth initiatives, including the development of new solutions that will accelerate revenue growth and expand the company's total addressable market. The company's research and development program has a strong track record of producing innovative solutions that improve customer outcomes while also driving incremental growth, including FIS Modern Banking Platform, Payments One, Digital One, Code Connect, Access Worldpay, the FIS Premium Payback Loyalty Network, and RealNet.

In addition, FIS has successfully augmented its new solution development and revenue growth with M&A, and will continue to prioritize these investments. The company expects to maintain significant financial capacity for M&A while simultaneously growing its dividend and repurchasing shares.

FIS is increasing its expected annual dividend growth rate to 20% per year, an increase from 10% per year previously, resulting in approximately $100 million of incremental dividend payment to shareholders during 2022. This accelerated dividend growth rate will enable the company to gradually increase its dividend payout ratio to approximately 35% of adjusted net earnings over several years from approximately 25% in 2021. This updated dividend policy will take effect with the company's regularly scheduled first quarter dividend, payable in March 2022.

The company opportunistically repurchases shares under its existing 100 million share authorization, announced in February 2021. As of September 30, 2021, the company has repurchased 15 million shares of its Class A common stock and has authorization for 85 million shares remaining. Repurchases may be made at management's discretion from time to time on the open market, through privately negotiated transactions and through Rule 10b5-1 plans. The repurchase program has no time limit and may be suspended for periods, amended or discontinued at any time. Any shares acquired will be available for general corporate purposes.

About FIS

FIS is a leading provider of technology solutions for merchants, banks and capital markets firms globally. Our employees are dedicated to advancing the way the world pays, banks and invests by applying our scale, deep expertise and data-driven insights. We help our clients use technology in innovative ways to solve business-critical challenges and deliver superior experiences for their customers. Headquartered in Jacksonville, Florida, FIS ranks #241 on the 2021 Fortune 500 and is a member of Standard & Poor's 500® Index. To learn more, visit www.fisglobal.com. Follow FIS on Facebook, LinkedIn and Twitter (@FISGlobal).

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FIS Updates Capital Allocation Strategy