J.P. Morgan Ultimate Services Investor Conference November 14, 2012

Transcription

1 J.P. Morgan Ultimate Services Investor Conference November 14, 2012

2 2 Safe Harbor Provision This presentation made by management may contain forward-looking statements that involve a number of risks and uncertainties associated with our business. The factors that could cause our actual results of operations to differ materially from any forward-looking statements by our management are detailed in our most recently filed Form 10-K or 10-Q, as applicable. We undertake no obligation to revise any of these statements to reflect future circumstances or the occurrence of unanticipated events.

3 3 A G E N D A Positioned for Sustained Growth GPN Today Market Trends Strategy

4 G L O B AL TO D AY A Leading Worldwide Merchant Acquirer FY 2012 Revenues $2.2B Valuable, Worldwide Network International footprint Top 4 North America International 71% 29% Countries Transactions processed 26 >5B Dollar volume settled >$350B Merchants serviced >1M Currencies authorized >50 4

5 With an Established Global Footprint Total Revenues $350M $2.2B Revenue Outside United States 7% 44% Countries 3 26 Cash EPS $0.27 $3.53 Free Cash Flow $50M $265M Market Cap $440M $3.4B Key Acquisitions Completed 13 5

6 Executing a Global Strategy 1 Expand Distribution Direct Distribution Partner of Choice -VARs -Banks -ISOs -Corporate -Card Not Present (CNP) Payment Service Providers (PSP) / Aggregators 2 Grow Geographic Footprint Europe Asia-Pacific Latin and South America 3 Deliver Enhanced Value Increase Payment Acceptance Options Digital Commerce Capitalize on Multi- National Opportunities Leverage Infrastructure and Operating Efficiencies as a Single Worldwide Company 6

7 Unmatched International Presence Market Share is # 1, 2 or 3 in Each International Market Niles Las Vegas Toronto Owings Mills Atlanta UK Kazakhstan Latvia Russia Belarus Poland Slovakia Czech Ukraine Hungary Rep. India China Hong Kong Macau Taiwan Philippines Saõ Paulo Spain Bulgaria Sri Lanka Maldives Malaysia Singapore Brunei U.S. Canada Spain UK Czech Republic Russia Asia- Pacific 12% 17% 21% 20% 50% 29% 25% 7 Note: Market share and market position are based on value of transaction volume, except for the U.S. and Asia-Pacific, which is based on estimated share of merchant acquiring revenue. Note: Brazil venture currently in negotiations and is a greenfield opportunity.

8 Delivering Consistent Results Revenues ($M) Cash EPS ($) 17% CAGR $2,204 $2,360-2,400 27% CAGR $3.53 $ $1,860 $3.08 $350 $0.27 FY01 FY11 FY12 FY13 Outlook FY01 FY11 FY12 FY13 Outlook 8 Note: Represents cash normalized results, which exclude divested businesses and non-recurring items. Please see our earnings press release (filed as exhibits to our Form 8-K) for more information.

9 9 A G E N D A Positioned for Sustained Growth GPN Today Market Trends Strategy

10 Well-Positioned to Capitalize on Market Trends Key Trends Worldwide shift from cash to electronic payments Greater rate of growth in emerging markets Market conditions drive partnership opportunities New payment types and technologies Multiple growth opportunities for Global Payments Increasing global adoption of integrated solutions 10

11 A C L O S E R L O O K Positioned in a Global Growth Market Projected Global Bank Card Transaction Volume (US$tn) $21.9 MEA Latin America Canada Europe 15.6% CAGR US $5.2 $6.7 Asia-Pacific Source: The Nilson Report, Credit Agricole Securities (USA)

12 12 Market Changes Driving Growth Multinational Infrastructure EMV Opportunity Digital Commerce Network Evolution Social / Cultural Trends

13 13 A G E N D A Positioned for Sustained Growth GPN Today Market Trends Strategy

14 14 Strategic Growth Initiatives 1 Enhance our Americas Business 2 Accelerate Growth Internationally 3 Leverage Technology and Operations 4 Acquire Selectively 5 Spur Product Introduction

15 1. Enhance Our Americas Business Expand Distribution New and Enhanced Product and Service Offerings Geographic Expansion Continue Direct Sales Channel Wins / Own More of Distribution Channel - VAR Channel (e.g., APT acquisition) - Gaming Momentum - New Industry Verticals Expand Partner of Choice Profile - ecommerce (e.g., CyberSource acquisition) - New Partnerships - Payment Service Providers (PSP) Digital Commerce Emerging Payments Dynamic Currency Conversion Capitalize on Multi- National Footprint Global Service Center Brazil Latin and South America 15 15

16 1. Enhance Our Americas Business Acquisition of Accelerated Payment Technologies (APT) The Transaction Leading provider of integrated payment processing solutions to value-added resellers (VARs) 700 VAR partners, $8B volume Purchase price of $413M, no integration required, closed 10/1/12 Strategic Rationale Diversify distribution Strong retention profile Expand vertical markets Strong financial performance and trajectory 16

17 2. Accelerate Growth Internationally ecommerce Expand Distribution Industry Vertical Focus Initiatives Payment Service Providers (PSP) VAR Channel New Partnerships New and Enhanced Product and Service Offerings Emerging Payment Technologies Dynamic Currency Conversion Enhanced Customized Reporting Mobile Retailer Loyalty Geographic Expansion Leverage Global Operations with Local Strategies Expand Partnerships within Existing Countries Establish New Partnerships in Additional Countries 17 17

18 2. Accelerate Growth Internationally Acquisition of Remaining 44% Interest in Asia-Pacific Joint Venture The Transaction Acquiring leading direct merchant processor in 11 countries/territories Acquired HSBC 44% of Asia Pacific joint venture for US$242M closing in second quarter Terms include a continuing 10-year marketing alliance and merchant referral agreement from HSBC Strategic Rationale India Malaysia Sri Lanka Maldives Singapore China Macau Taiwan Hong Kong Brunei Philippines Opportunity to expand distribution with local institutions and partners Offers significant long-term growth opportunity 18

19 19 3. Leverage Technology and Operations Higher Value-Added Solutions Create / maintain capacity to drive scale for future growth Payment Processing Bill / Utility Payments Fraud / Risk Management Facilitate multi channel retail and digital commerce Mobile (Wallet) Data Analytics Provide available / efficient core products worldwide Loyalty / Promotions / Coupons Multi- Currency Merchant Finance Mobile ecommerce & Digital Value-Added Benefits

20 20 4. Acquire Key Targets North America Strong position, leveraging cash flow Selected growth technologies Opportunistic approach to bank partnerships/bank portfolios Alliances/distribution/vertical market opportunities Latin and South America A growing market Bank partnerships in targeted countries Bank portfolios Europe Significant opportunity Add-on bank partnerships in targeted countries Selected growth technologies Bank portfolios HSBC relationships Asia-Pacific Large growth market Bank partnerships in targeted countries Company/portfolio acquisitions in selected countries/regions Country-specific approach to growth technologies

21 21 5. Spur Product Introduction VARs PSPs ISOs Direct Merchant Social Networks Partner of Choice Innovation ecommerce Multi Currency Mobile Fraud/Risk Global Social Commerce Multi-Channel Global Infrastructure

22 22 W H Y I N V E S T Performance Focused. Growth Driven. GPN Today Solid track record Market Trends Well-positioned in attractive markets Strategy Executing plan for sustainable growth

23 Q&A

24 24 Appendix Reconcilliation of Cash Financials to GAAP Outlook Summary 2013

25 25 Reconcilliation of Cash Financials to GAAP Fiscal Year Ended May 31, ($'s in Millions, except per share) Net Income $203.3 $209.2 $188.2 Discontinued operations Processing intrustion expense, net Acquisition intangible amort, net Cash Earnings $230.0 $247.7 $280.3 Diluted Shares Cash EPS $2.80 $3.08 $3.53

26 Outlook Summary 2013 (In millions, except per share data) Fiscal 2012 Actual Fiscal 2013 Outlook % Change FY12 Revenue Outlook Constant currency 1 $ 2,204 $2,385 to $2,425 8% to 10% Foreign currency impact 2 NA ($25) Total Revenues $ 2,204 $2,360 to $2,400 7% to 9% EPS Outlook Constant currency 1 $ 3.53 $3.67 to $3.74 4% to 6% Foreign currency impact 2 NA ($0.08) Cash EPS $ 3.53 $3.59 to $3.66 2% to 4% Acquisition-related intangibles and non-recurring items 3 (0.48) ($0.60) 25% Processing system intrusion (0.68) TBD* NM GAAP Diluted EPS $ 2.37 $2.99 to $ % to 29% 1 Reflects current period and forecasted results on a pro forma basis as if foreign currency rates did not change from the comparable prior year period. 2 Reflects the impact of actual and forecasted changes in foreign currency rates from the comparable prior year period. 3 Fiscal 2013 reflects $0.56 of acquisition-related intangibles and $0.04 of non-recurring items. Acquisition-related intangibles accounted for $0.35 in fiscal 2012 and non-recurring items $ * Not able to accurately estimate 2013 charges for processing system intrusion, remediation, true-ups, etc. We currently anticipate that such additional costs may be $55 to $65 million in fiscal 2013 which includes $24 million recorded in first quarter fiscal We anticipate that we may receive additional insurance recoveries of up to $28 million.