Dec 4, 2014 Yuan Chen, Refky Saputra, Yiqi (Delia) Ye Where tradition meets technology

Agenda  Current Holdings & Relevant Stock Market Performance  Company Overview  Business Strategy & Management Outlook  Macroeconomic Overview  Industry Overview  Financial Analysis  Valuation  Recommendation

 Current share price = $61.90  Current holding value = $12,380  Constitutes 6.47% of invested holdings (without cash)  Constitutes 2.99% of invested holdings (with cash)  Initial investment: $7,200  Unrealized gain: $10,580 Source: Yahoo! Finance RCMP Portfolio ( Nov 11, 1999Mar 2, 2000Mar 4, 2001Jan 15, 2007 Nov 25, 2013 Purchased: 200 $36 per share 2 for 1 split: 400 $18 per share 2 for 1 split: 800 $9 per share Sold: 200 $56.75 (realized gain of $9,550) Sold: 400 $22.53 (realized gain of $5,412) Hold: 200 $61.90 Current Holdings 6.47%

Source: Bloomberg Finance as of Dec 3, 2014 Market Cap (USD)5,061.9M52 Week Dec 1, 2014$62.46 Shares outstanding81.8M52 Week Oct 15, 2014$51.86 Free float98.69%YTD Change/%$2.69/4.54% 60% 47% 27% E E E E EEE E Trading snapshot 2-year stock price movement against benchmarks & positive earnings release impact Relevant stock market performance

 Founded by Jack Henry and Jerry Hall in 1976  Headquartered in Monett, Missouri  Listed on NASDAQ on October 29, 1985  Industry: Business Software & Services Processing transactions Managing information Automating business process Source: Jack Henry & Associates 10K 2014 Page 4  Serves nearly 11,300 financial institutions and diverse corporate entities Providing three arrays of products and services within information processing Key facts and brief history Company overview

 Provides enterprise-wide automation and data services to commercial banks  Clients include 1,200+ banks ranging from community institutions to mid-tier banks with assets of up to $30 billion  Founded in 1985 and acquired by JKHY in 2000  Provides core data processing solutions for credit unions  Serves credit unions of all sizes, with 780+ credit union customers  Provides specialized products and services to financial institutions that are non-core customers  Serves financial services organizations of all asset sizes and charters, and diverse corporate entities with approximately 10,800 domestic and international customers Source: Jack Henry & Associates 10K 2014 Page 7 Business segments Jack Henry Banking Symitar ProfitStars # Banks with $30.0 billion in assets # Credit unions of all size 11% 14%

Revenue breakdown over time Source: Jack Henry & Associates 10K 2014 Page License  Sale and delivery of proprietary application software systems contracted with the firm by customers Hardware Sale  Agreements with hardware manufacturers to sell computer hardware, maintenance and related services to customers Support and service  Annual support to assist the customer in operating their systems and to enhance and update the software CAGR of 10% Revenue sources

Source: Jack Henry & Associates 10K 2014 Page 6  Expanding each core customer relationship by cross-selling complementary products and services to enhance functionality  Maintaining a company-wide commitment to customer service and generates high levels of customer retention  Providing commercial banks and credit unions with core software systems that provide excellent functionality  Supporting in-house and outsourced operating environments with identical functionality Business Strategy Generate organic revenue and earnings growth through enhancing functionality Maintain in-depth and sustainable customer relationship

Fiscal YearCompany or Product NameProducts and Services 2014 Mobile banking, web development and data-enriched marketing technology 2010 Internet and telephone bill payment services 2010 Payment processing solutions for credit unions 2010 Integrated technology and payment processing solutions Source: Jack Henry & Associates 10K 2014 Page 6  Started acquiring other companies in 1992, gone through 28 material acquisitions since fiscal end of 1999  Increasingly difficult to find targets given the comprehensive products offering after 38 years in business  Alternative ways of leveraging cash, including repurchase Business Strategy Continue seeking opportunities to capitalize on diversification and strategic acquisitions Recent acquisitions

Source: Jack Henry & Associates 10K 2014 Page 19 Management Outlook Anticipation about the future market environment Cautiously optimistic about future business operation  Continued consolidation within the financial services industry  Intensified regulatory conditions and legislation such as Dodd-Frank and Consumer Protection Act  Motivation for some financial institutions to postpone discretionary spending  Revenue growth coupled with company’s continued focus on cost management  Gross margin expected to be driven up gradually  Recurring revenue and healthy sales pipeline continue to drive majority of business  Customers continue to face regulatory and operational challenges  Greater need for solutions addressing institutional profitability and efficiency  Strong balance sheet, access to extensive lines of credit  Position the firm well to address current and future opportunities

Source: U.S. Bureau of Economic Analysis ( Bureau of Labor Statistics ( Macroeconomic Overview Quarter to Quarter GDP GrowthMonthly Unemployment Rate Note: Real GDP growth is measured at seasonally adjusted annual rates. In general, the economy has shown a great performance. GDP has grown 5.9% in the last quarter and the unemployment rate went down to 5.8% on October

Banking and credit union industry is expected to grow along with the recovery of the economy. However, they are still finding trouble with the existing regulation Banking  Improvement in the job market has created a bigger demand for consumption loan  Numerous banks are doing consolidation to become a larger banks  Dodd-Frank has put lots of limitations on Product and Services development Credit Union  Auto loan is starting to revive for the past couple of months  Housing loan is up ticking slowly but steadily  Investment loan is still not growing as its expected  New regulations that are more difficult to comply with Macroeconomic Overview Source: Federal Reserve Bank of St. Louis (

Source: World Retail Banking Report 2013, Capgemini Analysis Macroeconomic Overview Big Data Technology and Customer Relationship Management are very important part in modern banking business. Outsourcing the business would be much more efficient for the company Big data technology for enhancing customer centricity in banking Knowledge of Customer Consistent Multi-Channel Experience Product-Channel Fit Intimacy and Relationship Building Trust and Confidence Customer Bank Relationship External Unstructured Data Internal Unstructured Data Structured Data Big Data Analytical CRM Operational CRM Customer Relationship Management (CMR) A combination of structured and unstructured data that represents the entire field of data the firm can utilize to increase its understanding of its customers A customer-centric tool which helps banks to optimize costs, increase revenues and enhance customer satisfaction

Porter Five Forces  Innovative technology is important for banking industry  Bigger banks tend to internalize the service Bargaining Power of Buyers Low-Medium  Hardware and software markets are very competitive Bargaining Power of Suppliers Low Competition Medium  Innovative product  Brand advantage  Consolidations in software industry  Bank consolidations  High switching cost Threat of Substitutes Medium Barriers to entry High  Difficulty to get a new client  Economies of Scale

Weakness  Relatively small to competitors  Past innovations are based on acquisitions Strength  Consistent stream of cash flow  Strong free cash flow for repurchase and acquisitions  Good management team  Strong market share Opportunities  Banking and credit union industry is growing and restructuring towards more efficient IT systems  More banks and credit unions are thinking of IT system outsourcing  Regulation creates new demand Threat  Larger banks may internalize IT systems  Uncertainty in the economy  High dependence on banking industry and its regulation SWOT Analysis

Technical Analysis Source: Bloomberg Finance as of Dec 3, 2014

Recent Financial Information Operating EfficiencyShare repurchase & Dividends Source: Jack Henry & Associates 10K 2014 Item 8  Improving Profitability  Increasing cash distribution to shareholders through dividends and repurchase

Ratio Analysis Dupont Analysis Greenblatt Ratios  Stable Revenue Stream  Low Volatility  Decreasing Debt  Consistent Growth Debt/Asset Ratio Source: Jack Henry & Associates 10K 2014 Item 8

Comparable Analysis Source: Capital IQ, Yahoo Finance:

Revenue Projections Source: Jack Henry & Associates 10K 2014 Financial Statements

Discounted Cash Flow Analysis Source: Jack Henry & Associates 10K 2014 Item 8

Recommendation Weight: 40% Price: $53.46 DCF Method Weight: 60% Price: $59.13 Comparable Multiples Method Implied Price: $56.86 Current Price: $61.90 Valuation Summary

Questions? Where tradition meets technology