1. JACK HENRY Gagan Bhatia, Olamide Esan, Alex Florea, Somil Kadakia, Victor Murthi, Yanyan Xu Presented on 11/10/2009

2. DeliveDeliverable Outlinerable I. Company Overview II. Company Strategy III. Macro-economic Outlook IV. Industry Analysis V. Competitors VI. Valuation VII. Client Portfolio VIII. Recommendation 2

3. Company Overview Founded in 1976 by Jack Henry as a provider of core information processing solutions for community banks, IPO in 1985 Trades on the NASDAQ as JKHY Headquartered in Monett, Missouri with over 3,800 employees Array of products and services includes processing transactions, automating business processes, and managing information for more than 9,800 financial institutions and diverse corporate entities FY 2009 Annual sales of $745.6 mm, Net Income of $103.1 3 Source: Jack Henry, Data Monitor, Accessed 11/01/09

4. Business Description Two main business segments: 1) Bank Systems and Services and 2) Credit union Systems and Services Three marketed brands: Jack Henry Banking, Symitar, and ProfitStars Three primary revenue sources: Software License Fees, Outsourcing Fees, Transaction/Maintenance/Support Fees 4 Source: Jack Henry, Annual Report 2008 Accessed 11/01/09

5. 3 Marketed Brands Provides integrated data processing to more than 1,500 banks ranging from start-ups to midsize banks. Services include business intelligence/bank management, retail and business banking, Internet banking, electronic funds transfer, risk management and protection. Provides core data processing to over 700 credit unions. Services include business intelligence and credit union management, member and member business services, Internet banking and EFT, risk management and protection Provides solutions for generating revenue and growth opportunities, security and mitigating operational risks, and controlling operating costs to financial institutions that are primarily not core customers. Diverse and flexible with more than 7,500 domestic and international customers. Source: Jack Henry, Annual Report 2008 Accessed 11/01/09

6. Recent Performance 6 Key Ratios (As of June 30 th, 2009) Company Industry Current Ratio (MRQ) 1.04 1.63 Quick Ratio (MRQ) 1.04 1.38 Debt to Equity (MRQ) 0.10 0.28 Sales 5 Year Growth 9.79 22.34 Net Profit Margin (TTM) % 13.83 -2.80 Return on Assets (TTM) % 9.95 -4.86 Return on Equity (TTM) % 16.79 2.83 2 Year Weekly End Price & Volume Acquired major competitor in Goldleaf Financial Solutions Recurring revenue increased to 70% from 66% Backlog increased by 8% Notes

7. Company Strategy Increase market share by aggressively earning new traditional and nontraditional clients and cross selling additional products and services to our existing clients. Add new products and services that enable financial institutions to capitalize on business opportunities and resolve specific operational issues. Increase recurring revenue by optimizing outsourcing opportunities, transaction-based processing fees, and ongoing software maintenance and support fees. Pursue disciplined acquisitions that complement our internal growth and continue our focused diversification. 7 Source: Jack Henry, Data Monitor, Accessed 11/01/09

8. Recent Acquisition Pemco: ATM debit transaction processing, which currently represents 70% of the revenue of the payments business, while also inducing new capabilities in the area of credit card transaction routing. Goldleaf: Remote deposit capture presence which is the fastest growing component of payment solutions with 54% year-over-year growth in the last fiscal year. 8

9. Recent Acquisition Recently addition of 2800 new customers and increase the number of core and non-core processing customers using one or more of our products to over 11,000 Employees Addition: 540 By 2005 they made 16 acquisition to add up total customers of 2300 Opportunities for cost reduction in addition to the increased revenue contribution 9

10. Risk Factors 10 Changes in the banking and credit union industry could reduce demand for our products Consolidation of financial institutions will continue to reduce the number of our customers and potential customers. The number of commercial banks and credit unions has decreased because of mergers and acquisitions over the last several decades and is expected to continue to decrease as more consolidation occurs Our growth may be affected if we are unable to find or complete suitable acquisitions Risks focused on banking industry and successful acquisitions Source: Jack Henry, Annual Report 2008 Accessed 11/01/09

11. Banking Industry 11 Hit hardest by collapse of sub-prime mortgage market and financial crisis Profit after tax decline by 80.5% over course of 2008 Increasing loan loss provisions and rising cost of funds contributed to profitability decline Loan loss provisions and net charge-offs expected to continue into 2010 Banking industry continue to be stressed Source: Banking Industry, IBIS World, Accessed 11/01/09

12. Credit Unions 12 Delinquencies will continue to increase in 2009 meaning lower operating profit margins Credit Union membership expected to grow due to member satisfaction The DJIA, existing home sales, and total motor vehicle registrations are expected to experience strong growth from 2010 onwards Credit Unions are somewhat linked to the above variables and industry growth is expected to be strongest between 2011 and 2013 Credit Unions will experience early hiccup with recovery starting in 2010 Source: Credit Unions, IBIS World, Accessed 11/01/09

13. SWOT Analysis (Strengths) 13 Strengths from diversification and industry Comprehensive portfolio of offerings Provides integrated computer systems and services for financial institutions. Offers solutions through three core business areas: Jack Henry Banking, ProfitStars, and Symitar Switching costs fairly high High barriers to entry, regulations are high Source: Jack Henry, Data Monitor, Accessed 11/01/09

14. SWOT Analysis (Weaknesses) 14 Weaknesses from size and dependence on banking industry Lack of scale Large competitors generated 5-6 times more revenue in 2008. (Fidelity/Fiserv) Lack of scale could affect its ability to bag large contracts and makes it a target for acquisition Dependence on the financial services The company derives its revenues from the financial services market. The current crisis and significant consolidation in the financial services industry could result in few large customers, there by increasing their bargaining power. It also enables large organizations to develop IT in- house Source: Jack Henry, Data Monitor, Accessed 11/01/09

15. SWOT Analysis (Opportunities) 15 Opportunities from acquisitions and virtualization Entry into virtualization market The market for server and desktop virtualization software technologies is forecasted to grow at a compound annual rate of over 30% through 2013. Virtualization generates significant cost and time saving benefits. JHA formally announced its support for virtualization in March 2009 Strategic acquisitions Acquisitions provide cross sell opportunities for the company’s core bank and credit union customers. On Oct 01, 2009, JHA announced acquisition of Goldleaf Financial Solutions, Inc and Pemco Technologies. Source: Jack Henry, Data Monitor, Accessed 11/01/09

16. SWOT Analysis (Threats) 16 Threats from spending habits of customers Challenging business environment Economic downturn means customers postponed their large capital investments. Customers elect outsourced delivery rather than a traditional license arrangement. The outsourced delivery does not require customers to make a large, up-front capital investment in license fees or in hardware. As a result, the company has been experiencing a decrease in license revenue in recent times. Source: Jack Henry, Data Monitor, Accessed 11/01/09

17. Technology Threat All of JKHY’s products are based on legacy systems The Core banking products are based on either the IBM or Windows systems Symitar's two functionally distinct core credit union platforms are based on IBM and Windows So JKHY faces a threat from companies that provide solutions on “open systems” and not on legacy systems like IBM and Windows in the “long term” “Finacle” a solution provided by Infosys Technologies Ltd is based on Open system 17 Source: Jack Henry, Data Monitor, Accessed 11/01/09

18. Competitors I. Comparative Descriptions II. Comparative Ratios III. Comparative Analysis 18

19. Recent Developments Previously Metavante competed with JKHY’s Jack Henry banking and Symitar brand. FIS competed with JKHY’s Symitar and Profitstars brand Recently FIS acquired Metavante, so now FIS competes with JKHY across all brands. With the recent acquisition FIS gains an entry into mid-tier banks, a hitherto stronghold of JKHY 19

20. Competitors Jack Henry BankingSymitarProfitstars 1.Fidelity National Information services (FIS) Array of disparate vendors that provide niche solutions to financial services organizations and corporate entities. 2. Fiserv 3. Open Solutions, Inc. (*FIS recently acquired Metavante) 4. Harland Financial Solutions – Ultradata JKHY’s competes with FIS and Fiserv broadly across segments. 20 Source: Jack Henry, Annual Report 2008, Accessed 11/01/09

21. Publicly traded competitors Company Market Cap ($mm)P/EP/SEPS ($/Share) JKHY 1,96020.02.61.16 FIS 8,20717.63.11.26 FISV 7,11815.82.52.94 This table just gives a reference for performance but JKHY’s real competitors are private companies 21 Its Important to note that the FIS and FISV are two of the largest players in the industry where as JKHY is just around the median mark. Also FISV and FIS ‘s primary clients are large institutions, where as JKHY targets mid-tier banks and credit unions. Source: Jack Henry, CapitalIQ, Accessed 11/01/09

22. Valuation I. Financial Highlights II. Assumptions III. WACC IV. DCF Analysis V. Multiples 22

23. Financial Highlights – Income Statement 23 STATEMENT OF INCOMEYEAR ENDED JUNE 30, 20052006200720082009 REVENUE License 82,374 84,014 76,403 73,553 58,434 % of Total Revenue15.37%14.22%11.46%9.90%7.84% Support & Service 364,076 424,333 501,722 580,334 614,242 % of Total Revenue67.94%71.81%75.28%78.11%82.38% Hardware Sales 89,413 82,530 88,342 89,039 72,917 % of Total Revenue16.69%13.97%13.26%11.98%9.78% Total Revenue 535,863 590,877 666,467 742,926 745,593 YOY % Change14.6%10.27%12.79%11.47%0.36% COST OF SALES Cost of License 5,547 2,717 4,277 6,698 6,885 Cost of Services 244,097 270,485 309,919 364,140 385,837 % of Support & Service Revenue67.05%63.74%61.77%62.75%62.82% Cost of Hardware 63,769 60,658 65,469 64,862 53,472 % of Hardware Sales71.32%73.50%74.11%72.85%73.33% Total Cost of Sales 313,413 333,860 379,665 435,700 446,194 Total COGS as % of Revenue58.49%56.50%56.97%58.65%59.84% Gross Profit 222,450 257,017 286,802 307,226 299,399 Net Income 75,501 89,923 104,681 104,222 103,102

24. Financial Highlights - Balance Sheet 24 BALANCE SHEETSYEAR ENDED JUNE 30, 20052006200720082009 Cash and Cash Equivalents 11,608 74,139 88,617 65,565 118,251 Investments 993 2,181 989 997 1,000 Trade Receivable 209,922 180,295 209,242 213,947 192,733 Total Current Assets 260,293 306,410 350,385 329,757 359,646 Property, Plant & Equipment 334,536 351,039 366,894 387,308 416,505 Depreciation (91,345) (99,407) (117,012) (148,303) (178,727) Property, Plant & Equipment, Net 243,191 251,632 249,882 239,005 237,778 Goodwill 191,415 212,538 248,863 289,373 292,400 Tradenames 4,010 4,009 3,999 Customer Relationship, net of amortization 68,475 63,162 61,248 63,819 55,450 Computer Software, net of amortization 29,488 43,840 59,190 74,943 82,679 Total Assets 814,153 906,067 999,340 1,021,044 1,050,700 Accounts Payable 15,895 14,525 11,481 6,946 8,206 Accrued Expenses 24,844 29,012 34,920 35,996 34,018 Note Payable and Current Maturities 45,000 50,241 70,503 70,177 63,461 Total Current Liabilities 246,583 263,492 330,477 341,175 344,407 Off Balance Sheet Debt 50,820 Total Liabilities 296,999 330,855 400,975 419,593 424,194 Total Equity 517,154 575,212 598,365 601,451 626,506 Total Liabilities & Shareholders' Equity 814,153 906,067 999,340 1,021,044 1,050,700

25. DCF - Assumptions  25 DCF ASSUMPTIONSHISTORICALFORECAST 200520062007200820092010E2011E2012E2013E2014E 1. Revenue Growth: Total Growth - YOY14.64%10.27%12.79%11.47%0.36%8.04%12.31%18.29%17.01%15.99% License/Revenue15.37%14.22%11.46%9.90%7.84%7.34%6.34%5.34%4.34%4.00% Support & Service/ Revenue67.94%71.81%75.28%78.11%82.38%83.88%85.88%87.88%89.88%91.22% Hardware Sales/Revenue16.69%13.97%13.26%11.98%9.78%8.78%7.78%6.78%5.78%4.78% Long Term - - - -3.00% 2. WACC 11.00% 3. Tax rate37.00%35.80%34.66%35.97%34.46%37.00% 4. COGS/Revenue58.49%56.50%56.97%58.65%59.84%60.00%59.80% License / COGS1.77%0.81%1.13%1.54% Support & Service / COGS77.88%81.02%81.63%83.58%86.47%87.97%89.47%90.97%92.47%93.97% Hardware Sales / COGS20.35%18.17%17.24%14.89%11.98%10.48%8.98%7.48%5.98%4.48% 5. SG&A/Total Revenue19.29%19.67%19.02%19.25%18.98%18.78%19.25% 6. NWC/Total Revenue36.39%28.42%29.82%28.00%24.88%24.02%25.01%25.39%25.88%26.37% 7. PPE/Total Revenue62.43%59.41%55.05%52.13%55.86%55.52%52.11%46.53%42.10%38.51% 8. Capex/Total PPE & Goodwill11.04%8.05%5.55%4.60%4.45%6.45%4.55%4.45%4.35%4.25%

26. DCF Analysis 26 NPV of FCF 1,957,511 Less Debt (2,916) Equity value 1,954,595 Number of shares (M) 84,195 Value per share 23.22 Share Price 11/9/09 24.19 (In Millions)

27. Multiples 27

28. Client Portfolio I. Stock Performance Graph II. Stock Ownership Profile III. Transaction History IV. RCMP Portfolio Correlation V. RCMP Portfolio Weights 28

29. Stock Performance Graph 29 JKHY – Jack Henry & Associate FISV – Fiserv FIS – Fidelity National GSPC – S&P 500.

30. Stock Ownership Profile 30

31. Transaction History 31

32. Portfolio Correlation 32

33. Portfolio Holdings 33

34. Recommendation DCF Range (+/- 10%) : $20.89 - $25.54 Current Price: $ 24.19 as of 11/09/09 Recommendation: HOLD 400 Shares Strong management  On top of changes in business and revenue streams.  Strategic acquisitions to improve business model. 34