Total System Services — Investor Day (2016)

73 slides from Total System Services's investor day presentation, Sep 10, 2016

Slide 2: Strategic Overview, Business Review, Financial Summary
STRATEGIC BUSINESS FINANCIAL OVERVIEW REVIEW SUMMARY M. Troy Woods William A. Pruett Paul M. Todd Chairman & Senior Executive Vice President & Senior Executive Vice President Chief Executive Officer President, North America Services & Chief Financial Officer Pamela A. Joseph Gaylon Jowers Jr. Presid
Slide 3: Forward-Looking Statements
STRATEGIC OVERVIEW FORWARD-LOOKING STATEMENTS This presentation and comments made by management contain forward-looking statements including, among others, statements regarding the expected future operating results of TSYS. These statements are based on management’s current expectations and assumpti
Slide 4: Use of Non-GAAP Financial Measures
STRATEGIC OVERVIEW USE OF NON-GAAP FINANCIAL MEASURES This slide presentation contains certain non-GAAP financial measures determined by methods other than in accordance with generally accepted accounting principles. Such non-GAAP financial measures include the following: net revenue; operating marg
Slide 6: Strategic Overview
STRATEGIC OVERVIEW ➜ Investment highlights ➜ TSYS today M. Troy Woods ➜ Strategic execution Chairman & ➜ Diversification strength Chief Executive Officer ➜ Industry trends ➜ Positioned for growth ©2016 Total System Services, Inc.® All rights reserved worldwide. 6
Slide 7: Investment Highlights
STRATEGIC OVERVIEW INVESTMENT HIGHLIGHTS ➜ Market leadership positions across payments value chain ➜ Strong recurring revenue and scalable operating model ➜ Consistent returns from diversified business mix ➜ Significant free cash flow ➜ Capital allocation strategy to drive shareholder value ➜ Invest
Slide 8: TSYS Today
STRATEGIC OVERVIEW TSYS TODAY 23.1 billion $3.8 trillion transactions 2015 money moved 2015 ~650,000 80 countries ~11,000 merchants team members Touching someone’s life or business 64 million times a day ©2016 Total System Services, Inc.® All rights reserved worldwide. 8
Slide 9: Strategic Execution: TSYS 20/20
STRATEGIC OVERVIEW STRATEGIC EXECUTION ➜ A clear vision ➜ Strong alignment ➜ Collaboration TSYS 20/20 ©2016 Total System Services, Inc.® All rights reserved worldwide. 9
Slide 10: Diversified Business
STRATEGIC OVERVIEW DIVERSIFIED BUSINESS ISSUER PROCESSING ➜ Issuer processor for the world’s largest financial institutions and payments providers ➜ Blue chip relationships and 400+ global clients ➜ 18 billion transactions processed in key geographies ➜ 80 countries MERCHANT ACQUIRING ➜ Full-service
Slide 11: Meeting Customer Needs
STRATEGIC OVERVIEW MEETING CUSTOMER NEEDS Through a deep understanding of our customer’s needs we provide the right solutions for: PAYMENT PROVIDERS BUSINESSES CONSUMERS ➜ Expertise in ➜ Sales growth ➜ Control over their payment processing ➜ Solutions to run financial lives ➜ Reduce regulatory and t
Slide 12: Strategic Progress
STRATEGIC OVERVIEW STRATEGIC PROGRESS #1 provider of solutions to ➜ Progress on #1 globally – closing the gap consumer and commercial ➜ Solid performance of North America segment credit card issuers globally ➜ Achievement of margin goals for International Top-10 global acquirer ➜ Through TransFirst
Slide 13: Forces Influencing the Payments Ecosystem
STRATEGIC OVERVIEW FORCES INFLUENCING THE PAYMENTS ECOSYSTEM Connected world IMPLICATIONS • Embedded payments Empowered • Elegant and end-users omni-channel experience Advances in • New commerce technology experiences and delivery • Unbundling of traditional Innovative business financial services mo
Slide 14: Enterprise Strategic Priorities
STRATEGIC OVERVIEW ENTERPRISE STRATEGIC PRIORITIES ➜ Leverage and expand distribution ➜ Deliver new innovative products and services ➜ Enhance our technology infrastructure ➜ Increase operational scale and efficiency ➜ Drive shareholder value through capital allocation strategies ©2016 Total System
Slide 15: Positioned for Growth
STRATEGIC OVERVIEW POSITIONED FOR GROWTH New markets and new customers ➜ Leverage cross-enterprise solutions Innovate and enhance suite of offerings ➜ Leverage end-to-end integrated platforms ➜ Adapt business models to meet evolving needs Grow the base ➜ Strong organic growth ➜ Cross-sell products a
Slide 17: Global Technology Vision
GLOBAL TECHNOLOGY VISION Patricia A. Watson Senior Executive Vice President & Chief Information Officer ©2016 Total System Services, Inc.® All rights reserved worldwide. 17
Slide 18: Global Technology Vision
STRATEGIC OVERVIEW GLOBAL TECHNOLOGY VISION Advance and integrate technology platforms to leverage capabilities, drive growth and take advantage of the forces influencing the payments ecosystem. Connected world Empowered end-users Advances in technology and delivery Innovative business models & solu
Slide 19: Transformation Strategy
STRATEGIC OVERVIEW TRANSFORMATION STRATEGY Expose and extend ➜ Leverage TSYS’ platform capabilities in new and different ways Innovate around core ➜ New products to create platform synergies and enable digital engagement Streamline systems and process ➜ Develop a continuous approach to delivering va
Slide 20: Expose & Extend TSYS' Platforms
STRATEGIC OVERVIEW EXPOSE & EXTEND TSYS’ PLATFORMS Enabling clients, partners and teams to build the next generation of digital payment solutions NEW DIGITAL ECOSYSTEM TSYS’ APPROACH ➜ Simple and developer-friendly ➜ User experience driven ➜ Mobile-first methodology ➜ Real-time access to data ➜ Mode
Slide 21: Innovate Around Core
STRATEGIC OVERVIEW INNOVATE AROUND CORE ➜ Investments to reimagine TSYS’ core solutions ➜ Alignment of teams and talent - Leverage TSYS’ three businesses to stimulate ideas and innovation ➜ New digitally focused product teams - Iterative, roadmap-driven development approach ©2016 Total System Servic
Slide 22: Streamline Systems & Processes
STRATEGIC OVERVIEW STREAMLINE SYSTEMS & PROCESSES SUPERCHARGE TSYS’ CORE ➜ Re-engineer key systems to fuel growth and reduce processing costs ➜ Data center strategy AUTOMATE SYSTEMS TO ACCELERATE DELIVERY ➜ Virtualize and automate to streamline provisioning and application deployment ➜ Leverage clou
Slide 23: Accelerate Growth & Adapt to Change
STRATEGIC OVERVIEW ACCELERATE GROWTH & ADAPT TO CHANGE Drive efficiency by streamlining Deliver infrastructure and solutions to leveraging “digitally Leverage automation global team empowered” end-users to bring new ideas Product-focused and value model for continuous delivery ©2016 Total System Ser
Slide 24: North America Services
NORTH AMERICA SERVICES William A. Pruett Senior Executive Vice President & President, North America Services ©2016 Total System Services, Inc.® All rights reserved worldwide. 24
Slide 25: North America Segment Overview
BUSINESS REVIEW NORTH AMERICA SEGMENT OVERVIEW #1 in the U.S. and #1 in Canada Consumer and commercial credit card issuers Services ➜ Credit, debit and ➜ Customer ➜ Card and ➜ Loyalty healthcare payment engagement print processing Key Metrics ~120 clients 423.3 million 15.8 billion accounts on file
Slide 26: North America Segment Highlights
BUSINESS REVIEW 2016 FIRST QUARTER NORTH AMERICA SEGMENT HIGHLIGHTS ➜ Renewed focus on cross-sell and (in millions) proactive delivery of innovative solutions ➜ Record number traditional AOF with double-digit transaction growth 49.4% 46.3% 36.9% 37.3% 6.8%  31.8% 32.8% ➜ Record quarter for net reve
Slide 27: Market & Client Dynamics
BUSINESS REVIEW MARKET & CLIENT DYNAMICS Trends in issuing ➜ Continued secular growth of bank-card issuers ➜ Consumer demand for more choice and control ➜ Innovative solutions attracting new entrants ➜ Enhanced compliance and regulatory programs ➜ Digitization of services expand across the entire co
Slide 28: Strategic Priorities: Cross-Sell Opportunities
BUSINESS REVIEW STRATEGIC PRIORITIES CROSS-SELL OPPORTUNITIES Value-added services ➜ TSYS QuickRemit℠ ➜ Fraud-related tools ➜ Digital Engagement ➜ Portfolio management ➜ TSYS FlexCollect ➜ Analytics ➜ ePayables ➜ Application processing ©2016 Total System Services, Inc.® All rights reserved worldwide
Slide 29: Cross-Sell Opportunities
BUSINESS REVIEW CROSS-SELL OPPORTUNITIES ISSUER PRODUCT GROUP MANAGED SERVICES ➜ Includes all value-added services ➜ Customer servicing ➜ iSolutions products, primarily ➜ Fraud strategy, detection and – Credit Care℠ investigation ➜ Disputes and chargebacks – CentreSuite® ➜ Debt recovery and collecti
Slide 30: Why We Win
BUSINESS REVIEW WHY WE WIN CLIENT ENGAGEMENT RELATIONSHIPS TRUSTED PERFORMANCE ➜ Deep understanding ➜ Loyalty among financial ➜ Global leader in of business needs institutions performance ➜ Solution sets to foster ➜ Significant market share ➜ Investment in innovative growth ➜ Robust sales pipeline t
Slide 31: International Services
INTERNATIONAL SERVICES Gaylon Jowers Jr. Senior Executive Vice President & President, International Services ©2016 Total System Services, Inc.® All rights reserved worldwide. 31
Slide 32: International Segment Overview
BUSINESS REVIEW INTERNATIONAL SEGMENT OVERVIEW #1 China #2 Europe Top-tier global payments 3rd party issuer 3rd party issuer solutions provider processor (CUP Data JV) processor (Licensing to processing continuum) Leverage Transformed Operating Model for Growth Services ➜ 3rd party payments ➜ Value-
Slide 33: International Segment Highlights
BUSINESS REVIEW 2016 FIRST QUARTER INTERNATIONAL SEGMENT HIGHLIGHTS ➜ Continued focus on growth and (in millions) margin expansion ➜ Record number Traditional AOF along with transaction growth at 8.1% ➜ Net revenue up 9.2% constant currency 7.6% 8.4% 6.5% 8.5% 6.6%  16.1% 18.5% 16.9% 17.8% 14.7% (♦
Slide 34: Line of Business Coverage
BUSINESS REVIEW LINE OF BUSINESS COVERAGE TS2® TSYS Managed PRIME℠ Business CUP Data 3rd party issuer processing Services Solutions Issuer processing for debit, credit, commercial FCA regulated BPO and Licensing, hosting JV in China and and virtual cards call center services and processing Southeast
Slide 35: Segment Dynamics Trends
BUSINESS REVIEW SEGMENT DYNAMICS TRENDS ➜ End-to-end user digital engagement ➜ Product: speed, ease and enablement ➜ Industry regulation: banking and payments ➜ Cost take-out and transformation initiatives at FI’s ©2016 Total System Services, Inc.® All rights reserved worldwide. 35
Slide 36: Strategic Priorities
BUSINESS REVIEW STRATEGIC PRIORITIES ➜ Accelerate product delivery ➜ Leverage PRIME Business Solutions ➜ Enhance BPO and call center services ➜ Extend partners and distribution channels ©2016 Total System Services, Inc.® All rights reserved worldwide. 36
Slide 37: Why We Win
BUSINESS REVIEW WHY WE WIN ➜ Trusted B2B brand with global reach ➜ Reliable, functionality rich and scalable processing platforms ➜ Extensive bank, retailer and partner relationships ➜ Market-leading, day-to-day client engagement model ➜ Global service delivery within secure infrastructure environme
Slide 39: NetSpend Segment Overview
BUSINESS REVIEW NETSPEND SEGMENT OVERVIEW #1 Prepaid Provider Prepaid program manager by gross dollar volume Services ➜ Consumer general ➜ Commercial prepaid: ➜ Small business purpose reloadable payroll cards and expense prepaid accounts incentive disbursement management and services Key Metrics 4.9
Slide 40: NetSpend Segment Highlights
BUSINESS REVIEW 2016 FIRST QUARTER NETSPEND SEGMENT HIGHLIGHTS Gross Dollar Volume ($ in billions) YOY Growth % $9.2 ➜ Launched small business pilot; signed 3 year renewal with Family Dollar $7.7 ➜ Gross Dollar Volume (GDV) up 19.6% exceeded 100,000 distributing locations and $5.5 $5.7 employers $5.
Slide 41: Market Dynamics
BUSINESS REVIEW MARKET DYNAMICS Prepaid is mainstream 25% of U.S. households owned a general purpose reloadable card** Gig economy 22% of American adults have already offered a good or service in the gig economy* Rise of millennials 60% of millennials earning more than $100,000 per year used a gener
Slide 42: Why We Win: Large Addressable Market
BUSINESS REVIEW WHY WE WIN Large Addressable Market 68 million 27 million adults are underserved U.S. small businesses by the financial system have <10 employees 28% 63% of U.S. households of SMBs do not have are either unbanked a commercial or underbanked bank account PRODUCT INNOVATION DISTRIBUTIO
Slide 43: Strategic Priorities
BUSINESS REVIEW STRATEGIC PRIORITIES PRODUCT INNOVATION DISTRIBUTION CUSTOMER EXPERIENCE ➜ Bank account ➜ Offer new products in ➜ Focus on mobile replacement features current distribution experiences ➜ Small business ➜ Partner with small ➜ Simplify taking and making focused products business aggrega
Slide 45: Merchant Segment Overview
BUSINESS REVIEW MERCHANT SEGMENT OVERVIEW #3 in U.S. #6 in U.S. in integrated payments by net revenue Services ➜ Payment technology ➜ Partner-centric distribution ➜ Customer service solutions model with end-to-end and omni-channel payment solutions acceptance services Key Metrics $117 billion 1.2 bi
Slide 46: Merchant Segment Highlights
BUSINESS REVIEW 2016 FIRST QUARTER – EXCLUDING TRANSFIRST MERCHANT SEGMENT HIGHLIGHTS Segment Revenue by LOB ($ in millions) YOY Growth % ➜ Strong performance leading up to the TransFirst acquisition ➜ SMB sales volume up 11.9% YOY (4%) (0%) (1%) 10% 7% ➜ Net revenue up 9.3% 13% 16% 14% 15% 11% Indi
Slide 47: Trends in Payments
BUSINESS REVIEW TRENDS IN PAYMENTS EMV and Spending NFC Migration POS Capabilities 37% Tablet POS $4.8 trillion of U.S. merchants are 27% of U.S. merchants was spent on Visa®, EMV capable utilize a tablet-based MasterCard®, American Express® POS system and Discover® in the U.S. in 2015 43% of proces
Slide 48: Strategic Priorities
BUSINESS REVIEW STRATEGIC PRIORITIES DISTRIBUTION PRODUCT INNOVATION HOLISTIC APPROACH ➜ Continue to add and ➜ Enhance and ➜ Organic partner growth expand partnerships expand offerings ➜ Cross-enterprise ➜ Maintain focus on ➜ Bring to market opportunities high growth verticals relevant solutions TEC
Slide 49: Why We Win
BUSINESS REVIEW WHY WE WIN Average net $406 billion $115 million promoter score for financial service Out-of-pocket U.S. mobile & tablet companies is*** Medical Expenses* commerce** 36.2 50% 25% TSYS Merchant of U.S. consumers of U.S. consumers use their mobile in-store to Segment score is used thei
Slide 51: Our Winning Formula
BUSINESS REVIEW OUR WINNING FORMULA ➜ Expertise in partner-centric distribution ➜ Seamless delivery of relevant products ➜ Multi-channel integrated technology solution ➜ Customer focused and operational excellence ©2016 Total System Services, Inc.® All rights reserved worldwide. 51
Slide 52: 2016 Financial Summary
2016 FINANCIAL SUMMARY Paul M. Todd ➜ Financial performance Senior Executive Vice President & ➜ Capital allocation Chief Financial Officer ➜ Investment highlights ©2016 Total System Services, Inc.® All rights reserved worldwide. 52
Slide 53: Financial Performance
FINANCIAL SUMMARY FINANCIAL PERFORMANCE ’13 – ’15 1Q2016 CAGR Growth NET REVENUE 17.1% 12.7% ADJUSTED EBITDA 15.6% 19.3% ADJUSTED EPS 19.2% 22.8% ©2016 Total System Services, Inc.® All rights reserved worldwide. 53
Slide 54: 2016 Revised Guidance
FINANCIAL SUMMARY 2016 REVISED GUIDANCE* (in millions, except per share data) Range Range Percent Change Total Revenues $4,182 to $4,264 50% to 53% Net Revenue $3,040 to $3,102 22% to 24% Adjusted EPS attributable to TSYS common shareholders from continuing operations $2.78 to $2.85 13% to 16% Avera
Slide 55: Capital Allocation
FINANCIAL SUMMARY CAPITAL ALLOCATION ➜ Delever to mid-to-low 2x EBITDA in the next 24 months ➜ Support CapEx and working capital requirements ➜ Maintain sufficient revolver capacity ➜ Maintain dividend ➜ Limit share buybacks during debt reduction ➜ Limited acquisition activity focused on tuck-in/pro
Slide 56: Investment Highlights
FINANCIAL SUMMARY INVESTMENT HIGHLIGHTS ➜ Market leadership positions across payments value chain ➜ Strong recurring revenue and scalable operating model ➜ Consistent returns from diversified business mix ➜ Significant free cash flow ➜ Capital allocation strategy to drive shareholder value ➜ Investm
Slide 59: Appendix: Non-GAAP Items – Net Revenue, Adjusted EBITDA and Adjusted EPS
2016 First Quarter APPENDIX: Non-GAAP Items – Net Revenue, Adjusted EBITDA and Adjusted EPS ➜ Net revenue is defined as total revenues less reimbursable items (such as postage), as well as, merchant acquiring interchange and assessment fees charged by the card associations or payment networks that a
Slide 60: Appendix: Accounts on File Portfolio Summary
2016 First Quarter APPENDIX: Accounts on File Portfolio Summary (in millions) March March % March December % 2016 2015 Change 2016 2015 Change Consumer 414.8 392.8 5.6 414.8 408.2 1.6 Commercial 46.3 42.3 9.3 46.3 45.4 1.9 Other 27.7 22.7 22.5 27.7 26.6 4.5 Traditional AOF 488.8 457.8 6.8 488.8 480.
Slide 61: Non-GAAP Reconciliation – Net Revenue
2016 First Quarter APPENDIX: Non-GAAP Reconciliation – Net Revenue (in thousands) Three Months Ended 3/31/16 3/31/15 Total revenues $739,378 $662,156 Reimbursable items 67,734 66,372 Interchange and assessments expense* - - Net revenue $671,644 $595,784 * Relates to acquisition of TransFirst, which
Slide 62: Non-GAAP Reconciliation – Adjusted Segment Operating Income and Operating Margin
2016 First Quarter APPENDIX: Non-GAAP Reconciliation – Adjusted Segment Operating Income and Operating Margin Three Months Ended (in thousands) 3/31/16 3/31/15 Adjusted segment operating income By segment: North America services (a) $124,788 $102,570 International services (b) 10,289 6,983 Merchant
Slide 63: Non-GAAP Reconciliation – Constant Currency Net Revenue
2016 First Quarter APPENDIX: Non-GAAP Reconciliation – Constant Currency Net Revenue Three Months Ended Percentage (in thousands) 3/31/16 3/31/15 Change Consolidated: Constant currency (1) $676,845 $595,784 13.6% Foreign currency (2) (5,201) -- Net revenue $671,644 $595,784 12.7% International servi
Slide 64: Non-GAAP Reconciliation – Constant Currency Total Revenue
2016 First Quarter APPENDIX: Non-GAAP Reconciliation – Constant Currency Total Revenue (in thousands) Three Months Ended Percentage 3/31/16 3/31/15 Change Consolidated: Constant currency (1) $744,974 $662,156 12.5% Foreign currency (2) (5,596) --- Total revenues $739,378 $662,156 11.7% International
Slide 65: Non-GAAP Reconciliation – EBITDA and Adjusted EBITDA
2016 First Quarter APPENDIX: Non-GAAP Reconciliation – EBITDA and Adjusted EBITDA Three Months Ended (in thousands) 3/31/16 3/31/15 Net income : As reported (GAAP) $92,408 $78,899 Adjusted for: Deduct: Equity in income of equity investments (6,590) (5,394) Add: Income taxes 43,429 39,782 Add: Nonope
Slide 66: Non-GAAP Reconciliation – Adjusted EPS
2016 First Quarter APPENDIX: Non-GAAP Reconciliation – Adjusted EPS Three Months Ended (in thousands) Mar Mar 2016 2015 Income from continuing operations available to TSYS common shareholders: As reported (GAAP) (a) $90,628 $77,755 Adjusted for amounts attributable to TSYS common shareholders (net o
Slide 67: Non-GAAP Reconciliation – Free Cash Flow
2016 First Quarter APPENDIX: Non-GAAP Reconciliation – Free Cash Flow Trailing Twelve (in thousands) Months Ended 3/31/2016 Cash flows from operating activities $611,741 Less: Purchases of property and equipment (54,607) Additions to licensed computer software from vendors (44,041) Additions to inte
Slide 68: Non-GAAP Reconciliation – EBITDA and Adjusted EBITDA
2016 First Quarter APPENDIX: Non-GAAP Reconciliation – EBITDA and Adjusted EBITDA Trailing Twelve (in thousands) Months Ended 3/31/2016 Net Income $382,550 Adjusted for: Deduct: Discontinued operations (1,410) Deduct: Equity in Income of Equity Investments (23,303) Add: Income Taxes 155,012 Add: Non
Slide 69: Supplemental – Non-GAAP
APPENDIX: Supplemental – Non-GAAP: (in thousands) 2015 Net cash provided by operating activities $ 600,194 Capital expenditures (203,315) Free cash flow 396,879 Principal payments on debt and capital leases (54,719) Available free cash flow $ 342,160 Dividends paid on common stock 73,677 Repurchase
Slide 70: Non-GAAP Reconciliation – Adjusted EPS
APPENDIX: Non-GAAP Reconciliation – Adjusted EPS Years Ended December 31, (in thousands) 2015 2014 2013 Income from continuing operations available to TSYS common shareholders: As reported (GAAP) (a) $362,633 $275,216 $246,893 Adjusted for amounts attributable to TSYS common shareholders (net of tax
Slide 71: Non-GAAP Reconciliation – EBITDA and Adjusted EBITDA
APPENDIX: Non-GAAP Reconciliation – EBITDA and Adjusted EBITDA Years Ended December 31, (in thousands) 2015 2014 2013 Net Income $369,041 $329,406 $256,597 Adjusted for: Deduct: Discontinued operations (1,411) (48,655 ) (2,055) Deduct: Equity in Income of Equity Investments (22,106) (17,583) (13,047
Slide 72: Non-GAAP Reconciliation – Net Revenue
APPENDIX: Non-GAAP Reconciliation – Net Revenue (in thousands) Years Ended December 31, 2015 2014 2013 Total revenues $2,779,541 $2,446,877 $2,064,305 Reimbursable items 280,192 253,899 240,597 Interchange and assessments expense* – – – Net revenue $2,499,349 $2,192,978 $1,823,708 * Relates to acqui
Slide 73: 2016 Revised Guidance Assumptions
2016 First Quarter APPENDIX: 2016 Revised Guidance Assumptions The guidance assumes: • There will be no significant movements in the London Interbank Offered rate and TSYS will not make any significant draws on the remaining balance of its credit facility; • There will be no significant movement in

Total System Services, Inc. (TSYS) — Investor Day (2016) on 6ix

Total System Services — Investor Day (2016)

Slide 1: Welcome: 2016 TSYS Analyst Day

Slide 2: Strategic Overview, Business Review, Financial Summary

Slide 3: Forward-Looking Statements

Slide 4: Use of Non-GAAP Financial Measures

Slide 5: Welcome & Opening Remarks

Slide 6: Strategic Overview

Slide 7: Investment Highlights

Slide 8: TSYS Today

Slide 9: Strategic Execution: TSYS 20/20

Slide 10: Diversified Business

Slide 11: Meeting Customer Needs

Slide 12: Strategic Progress

Slide 13: Forces Influencing the Payments Ecosystem

Slide 14: Enterprise Strategic Priorities

Slide 15: Positioned for Growth

Slide 16: Pamela A. Joseph, President & Chief Operating Officer

Slide 17: Global Technology Vision

Slide 18: Global Technology Vision

Slide 19: Transformation Strategy

Slide 20: Expose & Extend TSYS' Platforms

Slide 21: Innovate Around Core

Slide 22: Streamline Systems & Processes

Slide 23: Accelerate Growth & Adapt to Change

Slide 24: North America Services

Slide 25: North America Segment Overview

Slide 26: North America Segment Highlights

Slide 27: Market & Client Dynamics

Slide 28: Strategic Priorities: Cross-Sell Opportunities

Slide 29: Cross-Sell Opportunities

Slide 30: Why We Win

Slide 31: International Services

Slide 32: International Segment Overview

Slide 33: International Segment Highlights

Slide 34: Line of Business Coverage

Slide 35: Segment Dynamics Trends

Slide 36: Strategic Priorities

Slide 37: Why We Win

Slide 38: NetSpend

Slide 39: NetSpend Segment Overview

Slide 40: NetSpend Segment Highlights

Slide 41: Market Dynamics

Slide 42: Why We Win: Large Addressable Market

Slide 43: Strategic Priorities

Slide 44: Merchant Services

Slide 45: Merchant Segment Overview

Slide 46: Merchant Segment Highlights

Slide 47: Trends in Payments

Slide 48: Strategic Priorities

Slide 49: Why We Win

Slide 50: The Winning Formula

Slide 51: Our Winning Formula

Slide 52: 2016 Financial Summary

Slide 53: Financial Performance

Slide 54: 2016 Revised Guidance

Slide 55: Capital Allocation

Slide 56: Investment Highlights

Slide 57: Question & Answer Panel Discussion

Slide 58: Appendix

Slide 59: Appendix: Non-GAAP Items – Net Revenue, Adjusted EBITDA and Adjusted EPS

Slide 60: Appendix: Accounts on File Portfolio Summary

Slide 61: Non-GAAP Reconciliation – Net Revenue

Slide 62: Non-GAAP Reconciliation – Adjusted Segment Operating Income and Operating Margin

Slide 63: Non-GAAP Reconciliation – Constant Currency Net Revenue

Slide 64: Non-GAAP Reconciliation – Constant Currency Total Revenue

Slide 65: Non-GAAP Reconciliation – EBITDA and Adjusted EBITDA

Slide 66: Non-GAAP Reconciliation – Adjusted EPS

Slide 67: Non-GAAP Reconciliation – Free Cash Flow

Slide 68: Non-GAAP Reconciliation – EBITDA and Adjusted EBITDA

Slide 69: Supplemental – Non-GAAP

Slide 70: Non-GAAP Reconciliation – Adjusted EPS

Slide 71: Non-GAAP Reconciliation – EBITDA and Adjusted EBITDA

Slide 72: Non-GAAP Reconciliation – Net Revenue

Slide 73: 2016 Revised Guidance Assumptions