Total System Services — Investor Day (May 2017)
83 slides from Total System Services's investor day presentation, May 24, 2017
Slide 1: TSYS Investor Day
WELCOME TSYS Investor Day May 24, 2017 ©2017 Total System Services, Inc.® Proprietary. All rights reserved worldwide.
Slide 2: Forward-Looking Statements
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 assumptions and are subject
Slide 3: Use of Non-GAAP Financial Measures
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 margin on net revenue,
Slide 4: Agenda
• STRATEGIC OVERVIEW AGENDA • STRATEGIC EXECUTION Issuer Solutions Merchant Solutions Netspend • FINANCIAL SUMMARY ©2017 Total System Services, Inc.® Proprietary. All rights reserved worldwide.
Slide 5: Strategic Overview
STRATEGIC OVERVIEW Troy Woods Chairman of the Board & Chief Executive Officer 5 ©2017 Total System Services, Inc.® Proprietary. All rights reserved worldwide.
Slide 6: Under One Roof
Under One Roof $3.0 Billion in 2016 Net Revenue(1) ENTERPRISE SCALE $1.0 billion $12 billion adj. EBITDA (1) enterprise value ISSUER SOLUTIONS 29% MERCHANT SOLUTIONS 49% 25.5 billion transactions 22% 11,500 NETSPEND 80 countries team members (1) Non-GAAP financial measure; see appendix 6 ©2017 Total
Slide 7: Payments: A Growing Industry
Payments: A Growing Industry Cards vs. Cash: Historical & Projected Spend Volume ($ trillions) $10 CAGR: 2010-16 2016-20 $8 Cards 8% 7% Cash 0% 0% $6 $4 Cash $2 $0 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 U.S. market, source is McKinsey® payments map and TSYS analysis 7 ©2017 Total Sys
Slide 8: TSYS Priorities
TSYS Priorities • SHAREHOLDER • CUSTOMER • CORPORATE • TEAM MEMBER 8 ©2017 Total System Services, Inc.® Proprietary. All rights reserved worldwide.
Slide 9: Strong Financial Performance
Strong Financial Performance Net Revenue(1) Adj. Diluted EPS(1) Free Cash Flow(1) ($millions) ($millions) 2013 2014 2015 2016 2017G 2013 2014 2015 2016 2017G 2013 2014 2015 2016 2017G Issuer Merchant Netspend (1) Non-GAAP financial measure; see appendix. 2017 Figures are based on mid-point of
Slide 10: First Quarter 2017
TSYS PRIORITIES First Quarter 2017 SHAREHOLDER – Financial Performance NET REVENUE(1) +24.0% ADJUSTED EBITDA +24.4% (1) ADJUSTED DILUTED EPS +25.4% (1) (1) Non-GAAP financial measure; see appendix 10 ©2017 Total System Services, Inc.® Proprietary. All rights reserved worldwide.
Slide 11: Total Shareholder Return
TSYS PRIORITIES Total Shareholder Return SHAREHOLDER 3-Year 5-Year TSR TSR – Financial Performance – Shareholder Return 50.9% 160.9% 93.5% 28.1% S&P 500 S&P 500 TSYS TSYS 2014 – 2016 2012 – 2016 11 ©2017 Total System Services, Inc.® Proprietary. All rights reserved worldwide.
Slide 12: Share Repurchases & Dividends
TSYS PRIORITIES Share Repurchases & Dividends SHAREHOLDER As a % of Available FCF 94.4% 92.3% – Financial Performance 91.1%* – Shareholder Return – Capital Allocation $400 MM Accelerated Debt Payments 17.9% 2014 2015 2016 * 17.9% of Available FCF was used for share repurchases and dividends and 73.2
Slide 13: TSYS Customer Covenant
TSYS PRIORITIES TSYS Customer Covenant SHAREHOLDER CUSTOMER Through partnership and expertise, we’ll help – Client Experience you unlock the possibilities of payments. You can trust us to be honest and transparent, and depend on us for stability and security. We will hold ourselves to uncompromising
Slide 14: Voice of the Customer
TSYS PRIORITIES Voice of the Customer Execute & Communicate SHAREHOLDER CUSTOMER – Client Experience Prioritize Engage Insights Client CLOSED LOOP CLIENT EXPERIENCE MODEL Aggregate Capture Information Feedback 14 ©2017 Total System Services, Inc.® Proprietary. All rights reserved worldwide.
Slide 15: Product Development
TSYS PRIORITIES Product Development SHAREHOLDER RISK & FRAUD CUSTOMER – Client Experience DIGITAL – Product Development EXPERIENCES CUSTOMER ACQUISITION 15 ©2017 Total System Services, Inc.® Proprietary. All rights reserved worldwide.
Slide 16: Technology Transformation
TSYS PRIORITIES Technology Transformation SHAREHOLDER CUSTOMER CORPORATE – Technology MAINFRAMES SYSTEMS INFRASTRUCTURE 16 ©2017 Total System Services, Inc.® Proprietary. All rights reserved worldwide.
Slide 17: Compliance & Regulation
TSYS PRIORITIES Compliance & Regulation SHAREHOLDER CUSTOMER MAJOR COMPLIANCE MAJOR REGULATORY REGULATIONS ENTITIES CORPORATE – Technology • U.S. FSG • FFIEC – Compliance & • GLBA • SEC Regulation • U.S.A. Freedom Act • Federal Trade Commission • Bank Secrecy Act • CFPB • Foreign Corrupt Practices A
Slide 18: Data Security
TSYS PRIORITIES Data Security Enterprise Global Oversight SHAREHOLDER CUSTOMER CORPORATE – Technology Annual Data In-House, – Compliance & Breach Response 24x7 Team Regulation Exercise – Data Security Daily Incident Review Meetings 18 ©2017 Total System Services, Inc.® Proprietary. All rights reserv
Slide 19: Community-Focused
TSYS PRIORITIES Community-Focused SHAREHOLDER CUSTOMER CORPORATE – Technology – Compliance & Regulation – Data Security – Community-Focused 19 ©2017 Total System Services, Inc.® Proprietary. All rights reserved worldwide.
Slide 20: Team Member Priorities
TSYS PRIORITIES Team Member Priorities Talent SHAREHOLDER CUSTOMER CORPORATE TEAM MEMBER Always GROWING, – Attract, Retain & Great Work IMPROVING Leadership Develop Talent – Develop Our Leaders Place & MOVING – Great Work Place AHEAD 20 ©2017 Total System Services, Inc.® Proprietary. All rights rese
Slide 21: Our Core Values
TSYS PRIORITIES Our Core Values SHAREHOLDER Integrity CUSTOMER Relationships CORPORATE Excellence TEAM MEMBER Innovation Growth 21 ©2017 Total System Services, Inc.® Proprietary. All rights reserved worldwide.
Slide 22: Strategic Execution
STRATEGIC EXECUTION Pam Joseph President & Chief Operating Officer 22 ©2017 Total System Services, Inc.® Proprietary. All rights reserved worldwide.
Slide 23: Accelerating Growth
Accelerating Growth Capitalize on Industry Expand Addressable Growth Market EXECUTION MOMENTUM EXECUTION INNOVATION Grow Share of Wallet 23 ©2017 Total System Services, Inc.® Proprietary. All rights reserved worldwide.
Slide 24: Digitalization Creating Additional Opportunities
Digitalization Creating Additional Opportunities ISSUER MERCHANT NETSPEND SOLUTIONS SOLUTIONS Changing consumer Transforming distribution & Expanding access to spending patterns & product offering financial solutions service preference • ISV distribution • Vertical focus 24 ©2017 Total System Servic
Slide 25: Partner of Choice
Partner of Choice Leveraging Effective & TSYS as Efficient Sales Last Mile Channels Enhanced PRODUCT DISTRIBUTION New Offerings PARTNERS PARTNERS Customer Segments Speed to Ease of Market Integration 25 ©2017 Total System Services, Inc.® Proprietary. All rights reserved worldwide.
Slide 26: Enhancing Technology to Win
Enhancing Technology to Win Increase Ease of Connectivity Improve Efficiencies Facilitate Innovation 26 ©2017 Total System Services, Inc.® Proprietary. All rights reserved worldwide.
Slide 27: Segment Presentations
Segment Presentations OVERVIEW MERCHANT SOLUTIONS ISSUER SOLUTIONS MARKET OPPORTUNITIES GROWTH INITIATIVES • Business evolution NETSPEND • Product expansion • Leveraging partnerships 27 ©2017 Total System Services, Inc.® Proprietary. All rights reserved worldwide.
Slide 28: Issuer Solutions
ISSUER SOLUTIONS Gaylon Jowers Senior Executive Vice President & President, Issuer Solutions 28 ©2017 Total System Services, Inc.® Proprietary. All rights reserved worldwide.
Slide 29: Issuer Solutions Overview
ISSUER SOLUTIONS NET REVENUE(1) #1 in North America OVERVIEW ~$1.5 billion – Scale & Leadership ADJUSTED #2 in Europe MARGIN(1) ~35% #1 in China, via CUP Data JV RECURRING REVENUES 762 million ~94% accounts on file (1) Non-GAAP financial measure; see appendix 29 ©2017 Total System Services, Inc.® Pr
Slide 30: Issuer Solutions: Who We Serve
ISSUER FINANCIAL INSTITUTIONS SOLUTIONS OVERVIEW – Scale & Leadership – Who We Serve RETAILERS 30 ©2017 Total System Services, Inc.® Proprietary. All rights reserved worldwide.
Slide 31: Industry-Leading Suite of Integrated Solutions
ISSUER Industry-Leading Suite of Integrated Solutions SOLUTIONS SERVICES OVERVIEW – Scale & Leadership – Who We Serve CUSTOMER – What We Provide PROCESSING ENGAGEMENT • Consumers ANALYTICS • Small Businesses RISK & FRAUD • Corporations CARD & PRINT LOYALTY BACK OFFICE EPAYABLES 31 ©2017 Total System
Slide 32: Annual Issuer Spend = ~$7 billion
ISSUER SOLUTIONS Annual Issuer Spend = ~$7 billion EXPAND on processing and TSYS traditional offerings ADRESSABLE MARKET OVERVIEW Growing at ~3% CAGR through 2020 • Marketing and MARKET customer acquisition OPPORTUNITY TSYS Net Revenue(1) $1.5B • Digital experiences and self-service $5.5B Opportunit
Slide 33: Initiatives
ISSUER SOLUTIONS Initiatives OVERVIEW Integration of North America & International MARKET OPPORTUNITY Cost optimization GROWTH INITIATIVES – Business Evolution Client engagement model Fine-tuning sales & business development engine 33 ©2017 Total System Services, Inc.® Proprietary. All rights reserv
Slide 34: Issuer Solutions: Global Product & Innovation
ISSUER SOLUTIONS Karim Ahmad Executive Vice President, Global Product & Innovation 34 ©2017 Total System Services, Inc.® Proprietary. All rights reserved worldwide.
Slide 35: Industry Situation: Challenges
ISSUER SOLUTIONS Industry Situation: Challenges Increase Customer Loyalty Digital Interaction Driving OVERVIEW While Reducing Cost Changes In Fraud CUSTOMER LOYALTY COST PER CONTACT 2015-2020 MARKET $4.00 OPPORTUNITY 12% increase 125% 43% $0.10 Avg. Digital In-Person Digital CNP CNP Customer Users P
Slide 36: Significant Spend Directed at Solving these Challenges
ISSUER Significant Spend Directed at Solving SOLUTIONS these Challenges OVERVIEW Fraud & Risk Management MARKET OPPORTUNITY +$7 billion Digitalization Customer Acquisition & $5.2 of Customer Experiences Retention billion Capability Expansion DOUBLES Our Available Market 36 ©2017 Total System Service
Slide 37: Partner to Deliver Products to Market Faster
ISSUER SOLUTIONS Partner to Deliver Products to Market Faster OVERVIEW MARKET OPPORTUNITY TSYS Customer TSYS Foresight TSYS Transaction GROWTH INITIATIVES Service Score℠ Recovery Network℠ with Featurespace® Powered by Ethoca® – Leveraging Partnerships 70% Improved Call Resolution Time 30% Enhancemen
Slide 38: Product Priorities: 2017-2020
ISSUER SOLUTIONS Product Priorities: 2017-2020 OVERVIEW MARKET OPPORTUNITY Digital Marketing Risk & Fraud Experiences & Customer GROWTH INITIATIVES & Self-Service Acquisition – Leveraging Partnerships – Product Expansion DATA & ANALYTICS • Business Insights & Benchmarking • Predictive Analytics • En
Slide 39: Questions
QUESTIONS ©2017 Total System Services, Inc.® Proprietary. All rights reserved worldwide.
Slide 40: Merchant Solutions
MERCHANT SOLUTIONS Pam Joseph President & Chief Operating Officer 40 ©2017 Total System Services, Inc.® Proprietary. All rights reserved worldwide.
Slide 41: Merchant Solutions Overview
MERCHANT SOLUTIONS NET REVENUE(1) #6 U.S. merchant acquirer OVERVIEW ~$0.9 billion #3 in integrated payments – Scale & Leadership ADJUSTED MARGIN(1) 1,200 distribution partners ~34% 657,000 merchant locations INTEGRATED CHANNEL ~30% 4.5 billion transactions (1) Non-GAAP financial measure; see append
Slide 42: Diversified Base of Business
MERCHANT SOLUTIONS Diversified Base of Business INDUSTRIES OVERVIEW SALON & SPA – Scale & Leadership – Who We Serve BUSINESS SERVICES • Micro-Merchant • Small Business WELLNESS • Mid Market • National HEALTHCARE GENERAL RETAIL GOVERNMENT ECOMMERCE & B2B 42 ©2017 Total System Services, Inc.® Propriet
Slide 43: Merchant Solutions: What We Provide
MERCHANT VALUE-ADDED SOLUTIONS SOLUTIONS • Analytics and reporting • Loyalty and marketing offers OVERVIEW • Security – Scale & Leadership – Who We Serve – What We Provide PAYMENT TYPES POS SOLUTIONS • Credit • ACH BUY • Terminal • Debit • PayPal® • Tablet POS • Prepaid • Cash • eCommerce • Check •
Slide 44: Merchant Solutions: How We Go to Market
MERCHANT INTEGRATED PARTNERS SOLUTIONS OVERVIEW – Scale & Leadership – Who We Serve – What We Provide FINANCIAL INSTITUTION PARTNERS – How We Go to Market DIRECT 44 ©2017 Total System Services, Inc.® Proprietary. All rights reserved worldwide.
Slide 45: U.S. Merchant Acquiring Revenues = ~$18B
MERCHANT SOLUTIONS U.S. Merchant Acquiring EXPAND ADDRESSABLE Revenues = ~$18B MARKET OVERVIEW BUSINESS SOFTWARE • Vertical-market business MARKET TSYS Net software OPPORTUNITY Revenue $0.9B (1) VALUE ADDED SERVICES • Closed commerce $17B solution Opportunity • Expanded analytics Market Growth and i
Slide 46: Capturing the Revenue Benefits of TransFirst Integration
MERCHANT SOLUTIONS Capturing the Revenue Benefits of TransFirst Integration OVERVIEW TARGET END STATE MARKET OPPORTUNITY Partner-Centric One Universal Unified GROWTH INITIATIVES Distribution Platform Boarding Product Suite Model – Business Evolution BENEFITS • Revenue growth • Customer experience •
Slide 47: Product Priorities: 2017-2020
MERCHANT SOLUTIONS Product Priorities: 2017-2020 OVERVIEW MARKET OPPORTUNITY GROWTH INITIATIVES Enhance Payment Vertical Value Smart Facilitation & Market Added – Business Evolution Point-of-sale Disbursements Software Services – Product Expansion 47 ©2017 Total System Services, Inc.® Proprietary. A
Slide 48: Merchant Solutions: Philip McHugh
MERCHANT SOLUTIONS Philip McHugh Senior Executive Vice President & President, Merchant Solutions 48 ©2017 Total System Services, Inc.® Proprietary. All rights reserved worldwide.
Slide 49: Questions
QUESTIONS ©2017 Total System Services, Inc.® Proprietary. All rights reserved worldwide.
Slide 50: Netspend
NETSPEND Chuck Harris Senior Executive Vice President & President, Netspend 50 ©2017 Total System Services, Inc.® Proprietary. All rights reserved worldwide.
Slide 51: Netspend Overview
NETSPEND NET REVENUE(1) #1 U.S. provider of prepaid debit cards OVERVIEW ~$0.7 billion (measured by GDV) – Scale & Leadership ADJUSTED 130,000+ reload locations MARGIN(1) ~24% 100,000+ distribution employers & locations DIRECT $28.7 billion in GDV DEPOSIT CARDS 5.1 million 2.9 million ~55% active ca
Slide 52: Self-Banking Solutions
NETSPEND Self-Banking Solutions MOBILE VIRTUAL OVERVIEW DDA OFFERS – Scale & Leadership – Who We Serve – What We Provide GPR DIRECT • Consumers DEPOSIT • Small Businesses • Employers COMMERCIAL P2P TRANSFERS REMOTE DEPOSIT PAYCARD CAPTURE INCENTIVES/ FDIC-INSURED DISBURSEMENTS 52 ©2017 Total System
Slide 53: Leveraging Partners to Reach Customers
NETSPEND Leveraging Partners to Reach Customers DIRECT PARTNER OVERVIEW – Scale & Leadership – Who We Serve – What We Provide – How We Go to Market COMMERCIAL RETAIL 53 ©2017 Total System Services, Inc.® Proprietary. All rights reserved worldwide.
Slide 54: U.S. GPR & Paycard Prepaid Revenue = ~$4B
NETSPEND U.S. GPR & Paycard EXPAND ADDRESSABLE Prepaid Revenue = ~$4B MARKET OVERVIEW Growing at ~5% CAGR through 2020 CONSUMER • DDA MARKET OPPORTUNITY • Affinity partnerships TSYS Net • Mobile Hub Revenue(1) $0.7B BUSINESS • Commercial GPR • Paycard for contractors $3.3B Opportunity • Incentive an
Slide 55: Providing a Digital Financial Solution for Retailers
NETSPEND Providing a Digital Financial Solution for Retailers MONEY TRANSFER OVERVIEW 130K+ RELOAD TRANSIT LOCATIONS MARKET FDIC-INSURED FREE ATMs OPPORTUNITY DIRECT AT 7-ELEVEN DEPOSIT GROWTH INITIATIVES GPR – Leveraging Partnerships – Product Expansion ANYTIME MOBILE WALLET ALERTS REFILL P2P SAVIN
Slide 56: Leveraging the Power of TSYS for Micro & Small Businesses
NETSPEND Leveraging the Power of TSYS for Micro & Small Businesses BUSINESS NAME ACCEPT CARD OVERVIEW ON THE CARD PAYMENTS 130K+ RELOAD LOCATIONS MARKET FDIC-INSURED OPPORTUNITY DIRECT DEPOSIT GROWTH INITIATIVES COMMERCIAL GPR – Leveraging Partnerships – Product Expansion ANYTIME ALERTS EXPORT TAX D
Slide 57: Questions
QUESTIONS ©2017 Total System Services, Inc.® Proprietary. All rights reserved worldwide.
Slide 58: Financial Summary
FINANCIAL SUMMARY Paul Todd Senior Executive Vice President & Chief Financial Officer 58 ©2017 Total System Services, Inc.® Proprietary. All rights reserved worldwide.
Slide 59: Strong Financial Performance
Strong Financial Performance Net Revenue(1) Adj. Diluted EPS(1) Free Cash Flow(1) ($millions) ($millions) 2013 2014 2015 2016 2017G 2013 2014 2015 2016 2017G 2013 2014 2015 2016 2017G Issuer Merchant Netspend (1) Non-GAAP financial measure; see appendix. 2017 Figures are based on mid-point of
Slide 60: Affirming 2017 Revised Guidance
Affirming 2017 Revised Guidance* TOTAL REVENUES (GAAP) $4,770 to $4,870 NET REVENUE(1) million RANGE $3,295 to $3,395 DILUTED EARNINGS PER SHARE (GAAP) PERCENT CHANGE million $2.25 to $2.32 ADJUSTED DILUTED 14% to 17% RANGE EARNINGS PER SHARE(1) PERCENT CHANGE $3.16 to $3.26 RANGE 8% to 12% PERCENT
Slide 61: Accelerating Growth
Accelerating Growth Capitalize on Industry Expand Addressable Growth Market EXECUTION MOMENTUM EXECUTION INNOVATION Grow Share of Wallet 61 ©2017 Total System Services, Inc.® Proprietary. All rights reserved worldwide.
Slide 62: Longer-Term Financial Outlook: Issuer Solutions
Longer-Term Financial Outlook ISSUER SOLUTIONS GROW WALLET SHARE • Cross-selling and new client wins UPSIDE • Risk and fraud management EXPAND ADDRESSABLE MARKET 5-7% • Enhanced digital experiences CAGR(1) • Marketing and customer acquisition ~3%+ CAGR INDUSTRY TSYS (1) Non-GAAP financial measure; c
Slide 63: Longer-Term Financial Outlook: Merchant Solutions
Longer-Term Financial Outlook MERCHANT SOLUTIONS UPSIDE GROW WALLET SHARE • Grow distribution partnerships • Merchant sales execution • Smart POS 7-9% CAGR(1) • Payment facilitation and disbursements EXPAND ADDRESSABLE MARKET ~5%+ • Vertical market software CAGR • Expanded analytics and insights IND
Slide 64: Longer-Term Financial Outlook: Netspend
Longer-Term Financial Outlook NETSPEND GROW WALLET SHARE UPSIDE • Grow existing distribution channels • Mobile Hub • DDA as a complement to GPR 6-8% CAGR(1) EXPAND ADDRESSABLE MARKET • DDA upside ~5% CAGR • Affinity partnerships • Business solutions INDUSTRY TSYS (1) Non-GAAP financial measure; cons
Slide 65: Longer-Term Financial Outlook
Longer-Term Financial Outlook Strategy Drives Long-Term Organic Growth SEGMENT LONG-RANGE ANNUAL TARGETS CONSOLIDATED LONG-RANGE ANNUAL TARGETS ANNUAL MARKET ORGANIC NET SEGMENT (1) Organic Net Revenue Growth(1) 6% - 8% GROWTH REVENUE GROWTH Issuer ~3% 5% - 7% Adj. EBITDA Margin Growth(1) ~25-50 bps
Slide 66: Creating Value through Capital Allocation
Creating Value through Capital Allocation Investing Leveraging Returning Capital in Growth Strong Balance to Shareholders Sheet Internal Investments Long-Term Leverage Share Repurchases & Acquisitions Target of ~2.5x & Dividends • New products • De-leveraging on track • Target to return 75% of avail
Slide 67: Capital Deployment for Growth
Capital Deployment for Growth Acquisitions $2.4 billion Capital Expenditures $582 million Share Repurchases $432 million Represents 2014 - 2016 67 ©2017 Total System Services, Inc.® Proprietary. All rights reserved worldwide.
Slide 68: Investment Value Drivers
Investment Value Drivers Solid Long-Term Organic Growth Consistent Adjusted Diluted EPS Growth Margin Expansion Long-Term Contracts High Recurring Revenue Strong Free Cash Flow Generation Shareholder-Friendly Capital Allocation Investment-Grade Balance Sheet Attractive Valuation 68 ©2017 Total Syste
Slide 69: Questions
QUESTIONS ©2017 Total System Services, Inc.® Proprietary. All rights reserved worldwide.
Slide 70: Thank You
THANK YOU Unlocking opportunities in payments. ©2017 Total System Services, Inc.® Proprietary. All rights reserved worldwide.
Slide 71: Appendix
APPENDIX ©2017 Total System Services, Inc.® Proprietary. All rights reserved worldwide.
Slide 72: Appendix: Non-GAAP Reconciliation
Appendix: Non-GAAP Reconciliation EBITDA & Adjusted EBITDA Twelve Months Ended (in thousands) 12/31/16 Net income : As reported (GAAP) $325,972 Adjust for: Deduct: Income from discontinued operations -- Deduct: Equity in income of equity investments (25,933) Add: Income taxes 161,175 Add: Nonoperati
Slide 73: Appendix: Non-GAAP Reconciliation
Appendix: Non-GAAP Reconciliation Net Revenue (in thousands) Twelve Months Ended 12/31/16 12/31/15 12/31/14 12/31/13 Total revenues $4,170,077 $2,779,541 $2,446,877 $2,064,305 Less: reimbursable items, interchange and assessments expenses* 1,128,201 280,192 253,899 240,597 Net revenue $3,041,876 $2,
Slide 74: Appendix: Non-GAAP Reconciliation
Appendix: Non-GAAP Reconciliation Adjusted EPS Twelve Months Ended (in thousands, except per share data) 12/31/16 12/31/15 12/31/14 12/31/13 Income from continuing operations attributable to TSYS common shareholders: As reported (GAAP) (a) $319,638 $362,633 $275,216 $246,893 Adjusted for amounts att
Slide 75: Appendix: Non-GAAP Reconciliation
Appendix: Non-GAAP Reconciliation Free Cash Flow (in thousands) Twelve Months Ended 12/31/2016 12/31/2015 12/31/2014 12/31/2013 Cash flows from operating activities $717,909 $600,194 $560,201 $452,398 Less: Capital expenditures (142,573) (203,315) (235,315) (193,798) Free cash flow $575,336 $396,879
Slide 76: Appendix: Non-GAAP Reconciliation
Appendix: Non-GAAP Reconciliation Adjusted Segment Operating Income & Operating Margin Twelve Months Ended (in thousands) 12/31/16 Adjusted segment operating income By segment: Issuer Solutions (a) $525,025 Merchant Solutions (b) 307,595 Netspend (c) 160,371 Less: Acquisition intangible amortization
Slide 77: Appendix: 2017 Revised Guidance
Appendix: 2017 Revised Guidance* (in millions, except per share data) Range Range Percent Change Revenue: Total revenues (GAAP) $4,770 to $4,870 14% to 17% Net revenue(1) (non-GAAP) $3,295 to $3,395 8% to 12% Earnings per share (EPS) : Diluted EPS (GAAP) $2.25 to $2.32 30% to 34% Adjusted diluted EP
Slide 78: Appendix: Non-GAAP Reconciliation
Appendix: Non-GAAP Reconciliation Net Revenue Three Months Ended (in thousands) 3/31/17 3/31/16 Total revenues $1,184,725 $739,378 Less: reimbursable items, interchange and assessments expenses* 351,833 67,734 Net revenue $832,892 $671,644 * Relates to acquisition of TransFirst, which closed April 1
Slide 79: Appendix: Non-GAAP Reconciliation
Appendix: Non-GAAP Reconciliation EBITDA & Adjusted EBITDA Three Months Ended (in thousands) 3/31/17 3/31/16 Net income : As reported (GAAP) $107,107 $92,408 Adjust for: Less: Equity in income of equity investments (12,909) (6,248) Add: Income taxes 43,082 43,429 Add: Nonoperating expense 29,903 22,
Slide 80: Appendix: Non-GAAP Reconciliation
Appendix: Non-GAAP Reconciliation Adjusted Diluted EPS Three Months Ended (in thousands, except per share data) 3/31/17 3/31/16 Income from continuing operations attributable to TSYS common shareholders: As reported (GAAP) (a) $105,868 $90,628 Adjust for amounts attributable to TSYS common sharehold
Slide 81: Appendix: 2017 Revised Guidance Assumptions
Appendix: 2017 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 additional significant movement in foreign
Slide 82: Appendix
Appendix The Company has not provided a quantitative reconciliation for the longer-term growth targets contained in this slide presentation to the most directly comparable GAAP measures as a reconciliation cannot be provided without unreasonable efforts because management cannot reliably predict the
Slide 83: Unlocking opportunities in payments.
Unlocking opportunities in payments. ©2017 Total System Services, Inc.® Proprietary. All rights reserved worldwide.