J ACK H ENRY AND A SSOCIATES Piyapong Pantipjatuporn, Meiling Liu, Emma Zhang, Yuwei Hong October 25,

E XECUTIVE S UMMARY Introduction Review of company and its business Macroeconomic Review Industry Analysis Financial analysis Financial projections Applications of valuation tools Recommendation 3

S UMMARY OF H OLDINGS 11/11/1999: Purchased 200 shares at $36 per share 3/2/2000: 2:1 split which took the holding to 400 shares at $18 per share 3/4/2001: 2:1 split which took the holding to 800 shares at $9 per share 1/15/2007: Sold 400 shares at $22.53 for a realized gain of $5,412 3/9/2011 : Hold 400 shares at $32.47 Current share price = $32.47 Current holding value = $12,988 Constitutes 12.43% of invested holdings(without cash) Constitutes 3.93% of invested holdings(with cash) Unrealized gain: $9,388 4

C OMPANY O VERVIEW JHA provides integrated computer systems for in-house and outsourced data processing to commercial banks, credit unions and other financial institutions. JHA also performs data conversion and software implementation services for its systems and provide customer support services after the systems are implemented. Jack Henry Banking is the primary technology provider for more than 18% of U.S. banks. Symitar is the primary technology provider for 10% of credit unions. ProfitStars has client relationships with 56 of the largest 100 banks and 60 of the largest 100 credit unions. iPay Technologies has client relationships with more than 25% of U.S. banks and 23% of credit unions. 5

Jack Henry Banking - provides community and mid-tier banks with core and complementary solutions that process financial transactions and automate information management and business processes. Symitar – Acquired by Jack Henry & Associates in 2000, Symitar provides credit unions of all sizes with core and complementary solutions that process financial transactions and automate information management and business processes. 6 C OMPANY O VERVIEW 4 M AJOR B USINESS U NITS

ProfitStars - provides financial services organizations and diverse businesses outside the financial industry with specialized financial performance, imaging and payments processing, information security and risk management, and retail delivery solutions. iPay Technologies- Acquired by Jack Henry & Associates in 2010, provides consumer and small business electronic bill payment solutions and person-to-person electronic payment services to community and mid-tier banks, credit unions of all sizes, and other companies that provide information processing and online banking solutions. 7 C OMPANY O VERVIEW 4 M AJOR B USINESS U NITS

C OMPANY O VERVIEW R EVENUE S TREAMS 8

M ACROECONOMIC O VERVIEW During the economic crisis many banks and financial institutions have failed 30% of their customers were affected by the downturn The industry has been undergone consolidation, which reduces their number of potential clients Clients are more hesitant to invest in and purchase technology in this uncertain economic environment 9

U.S. GDP F ORECAST Source: Department of Commerce and Federal Reserve Effect of American Recovery and Reinvestment Act of

C OMPANY O VERVIEW B USINESS S TRATEGY Acquisition Strategy Started acquisitions in 1992 Adopted focused diversification acquisition strategy in 2004 Acquiring of companies and products that can be sold outside of JKHY’s core client base to all financial services companies Most recent acquisitions took place in 2010 PEMCO Technology iPay Technologies Goldleaf Financial Services Broad trend in industry 11

C OMPANY O VERVIEW SWOT A NALYSIS Strengths Low operating leverage Consistent and growing dividend Diversified revenue streams Weaknesses Some of their technologies not patented Size relative to competitors Switching costs for clients work against them Opportunities Many financial services are outsourcing their data and they provide the expertise Cross-selling of products Future acquisitions to increase market share and range of products Threats Trend of banks and credit unions Economic downturn strongly tied to client’s demand for products and services Competitive industry 12

Annual revenue growth during is – 2.3% Banks experienced huge losses as a result of the credit crisis, causing revenue reduction by 25.0% in Revenue will be less volatile through 2016 as commercial banks benefit from TARP aid 13 C USTOMERS C OMMERCIAL B ANKS

C USTOMERS C REDIT U NIONS Annual revenue growth during is – 3.4% Profitability is expected to improve through 2016 as revenue and membership continue to grow, with demand returning and credit unions servicing a larger portion of the US population across more regions 14

C OMPETITORS O VERVIEW FIDELITY NATIONAL INFORMATION FISERV Offers financial institution core processing, card issuer, and transaction processing services, including the NYCE Network Financial Solutions : core processing software applications to run critical banking processes; retail delivery applications for integrating customer-facing operations and back-office processes Payment Solutions : electronic funds transfer services comprising settlement and card management solutions; item processing and output services; credit card solutions; Provide various financial services technology solutions : Payments and Industry Products, and Financial Institution Services. Payments and Industry Products : electronic bill payment and presentment services, and services to meet the electronic transaction processing needs of the financial services industry. Financial Institution Services : account processing services, item processing services, loan origination and servicing products, cash management and consulting services, and other products and services that support various types of financial transactions 15

C OMPETITORS O VERVIEW NCR CORPORATION TOTAL SYSTEM SERVICES Offers financial-oriented self service technologies, such as ATMs; cash dispensers; software solutions; and consulting services for financial institutions and retailers Provides check and document imaging solutions consisting of hardware, software, and consulting, and support services that enable capture, processing, and retaining of check and item-based transactions Offers various maintenance and support services, as well as site assessment and preparation, staging, installation and implementation, systems management, and managed services Provides electronic payment processing and other services to card-issuing and merchant acquiring institutions Offers issuer account solutions, including processing the card application, initiating service for the cardholder, processing each card transaction for the issuing retailer or financial institution, and accumulating the account's transactions. Provides merchant processing and related services that comprise processing various payment forms, such as credit, debit, prepaid, electronic benefit transfer, and electronic check; authorization and capture of transactions; clearing and settlement of transactions. 16

C OMPETITORS O VERVIEW Value Measure JKHYFISFISVNCRTSS Trailing P/E Price/Sales Price/Book Enterprise Value/Revenue Enterprise Value/EBITDA

C OMPETITORS O VERVIEW Profitability and Management effectiveness JKHYFISFISVNCRTSS Profit Margin14.22%7.83%10.67%3.35%11.17% Operating Margin22.37%18.85%23.91%3.07%17.11% Return on Assets8.82%4.71%7.60%2.23%10.04% Return on Equity16.87%5.60%14.95%18.65%15.43% 18

S TOCK P RICES

I NDUSTRY A NALYSIS Low Threat of Substitutes High costs to learn new system, renewal of contracts High Barriers to Entry Compliance with regulations, high switching costs for clients High Industry Rivalry Highly competitive industry, larger competitors with more resources Low Medium Power of Buyers Clients are resistant to change due to switching costs Low Power of Suppliers Hardware of suppliers constitute a low portion of their revenue 20

A SSUMPTIONS Revenue Assumption: We remain cautiously optimistic, however, with increasing portions of our business coming from recurring revenue, increases in backlog and an encouraging sales pipeline in specific areas. Our customers will continue to face regulatory and operational challenges which our products and services address, and in these times they have an even greater need for some of our solutions that directly address institutional profitability and efficiency. We face these times with a strong balance sheet and an unwavering commitment to superior customer service, and we believe that we are well positioned to address current opportunities as well as those which will arise when the economic rebound strengthens. Capital Structure 21

DISCOUNT RATE 22

DCF AND VALUE 23

SENSITIVITY ANALYSIS 24

M ULTIPLE A NALYSIS 25

RECOMMENDATION Multiple Analysis: $31.59 DCF Value % % Sensitivity Analysis Price Range $ $41.63 Price as of Close 10/24/2011 $32.47 Recommendation: Hold 26

Q UESTIONS ? Thank You 27

A PPENDIX 28

C OMPETITORS O VERVIEW XXX JKHYFISFISVNCRTSS Revenue966.90M5.59B4.22B5.02B1.75B Revenue Per Share EBITDA306.83M1.59B1.30B250.00M426.13M Recurring revenue80%83%85%42.50%N/A 29

C OMPETITORS O VERVIEW XXX JKHYFISFISVNCRTSS Total Cash64.12M427.30M675.00M457.00M263.33M Total Debt154.03M4.94B3.72B11.00M266.12M Total Debt/Equity Book Value Per Share Operating Cash Flow240.13M1.15B972.00M254.00M392.75M 30