WELCOME. TSYS Investor Day. May 24, Total System Services, Inc. Proprietary. All rights reserved worldwide.

Size: px

Start display at page:

Kathlyn Georgina Pearson
5 years ago
Views:

WELCOME TSYS Investor Day May 24, 2017 2017 Total System

2 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 to risks, uncertainties and changes in circumstances. Forward-looking statements include all statements that are not historical facts and can be identified by the use of forward-looking terminology as the words believe, expect, anticipate, intend, plan, potential, estimate or similar expressions. Actual results may differ materially from those set forth in the forward-looking statements due to a variety of factors. More information about these risks, uncertainties and factors may be found in TSYS filings with the Securities and Exchange Commission, including its 2016 Annual Report on Form 10-K. TSYS disclaims any obligation to update any forward-looking statement as a result of new information, future developments or otherwise except as required by law Total System Services, Inc. Proprietary. All rights reserved worldwide.

3 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, revenues measured on a constant currency basis, free cash flow, EBITDA, adjusted EBITDA, adjusted earnings per share, adjusted diluted earnings per share, adjusted segment operating income and adjusted segment operating margin. The most comparable GAAP measures to these measures include the following: revenues, operating margin, revenues, cash flows from operating activities, net income, net income, earnings per share, earnings per share, operating income and operating margin, respectively. Management uses these non-gaap financial measures to assess the performance of TSYS core business. TSYS believes that these non-gaap financial measures provide meaningful additional information about TSYS to assist investors in evaluating TSYS operating results. These non-gaap financial measures should not be considered as a substitute for operating results determined in accordance with GAAP and may not be comparable to other similarly titled measures of other companies. The computations of the non-gaap financial measures used in this slide presentation are set forth in the Appendix to this slide presentation Total System Services, Inc. Proprietary. All rights reserved worldwide.

6 Under One Roof $3.0 Billion in 2016 Net Revenue (1) ENTERPRISE SCALE ISSUER SOLUTIONS 49% 29% MERCHANT SOLUTIONS $1.0 billion adj. EBITDA (1) $12 billion enterprise value 25.5 billion transactions 22% NETSPEND 80 countries 11,500 team members (1) Non-GAAP financial measure; see appendix Total System Services, Inc. Proprietary. All rights reserved worldwide.

7 Payments: A Growing Industry Cards vs. Cash: Historical & Projected Spend Volume ($ trillions) $10 $8 $6 CAGR: Cards 8% 7% Cash 0% 0% $4 $2 Cash $ U.S. market, source is McKinsey payments map and TSYS analysis Total System Services, Inc. Proprietary. All rights reserved worldwide.

TSYS Priorities SHAREHOLDER CUSTOMER CORPORATE TEAM MEMBER 8 2017

9 Strong Financial Performance ($millions) Net Revenue (1) Adj. Diluted EPS (1) ($millions) Free Cash Flow (1) G Issuer Merchant Netspend G G (1) Non-GAAP financial measure; see appendix Figures are based on mid-point of revised guidance Total System Services, Inc. Proprietary. All rights reserved worldwide.

10 TSYS PRIORITIES First Quarter 2017 SHAREHOLDER Financial Performance NET REVENUE (1) +24.0% ADJUSTED EBITDA (1) +24.4% ADJUSTED DILUTED EPS (1) +25.4% (1) Non-GAAP financial measure; see appendix Total System Services, Inc. Proprietary. All rights reserved worldwide.

11 TSYS S&P 500 TSYS S&P 500 TSYS PRIORITIES Total Shareholder Return SHAREHOLDER Financial Performance Shareholder Return 3-Year TSR 50.9% 5-Year TSR 160.9% 28.1% 93.5% Total System Services, Inc. Proprietary. All rights reserved worldwide.

12 TSYS PRIORITIES Share Repurchases & Dividends SHAREHOLDER Financial Performance Shareholder Return Capital Allocation As a % of Available FCF 94.4% 92.3% 91.1%* $400 MM Accelerated Debt Payments 17.9% Total System Services, Inc. Proprietary. All rights reserved worldwide * 17.9% of Available FCF was used for share repurchases and dividends and 73.2% of Available FCF was used for accelerated debt payments.

13 TSYS PRIORITIES TSYS Customer Covenant SHAREHOLDER CUSTOMER Client Experience Through partnership and expertise, we ll help 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 standards. We will never settle, never make do. We will earn your trust, and your business, every day Total System Services, Inc. Proprietary. All rights reserved worldwide.

14 TSYS PRIORITIES SHAREHOLDER Voice of the Customer Execute & Communicate CUSTOMER Client Experience Prioritize Insights Engage Client CLOSED LOOP CLIENT EXPERIENCE MODEL Aggregate Information Capture Feedback Total System Services, Inc. Proprietary. All rights reserved worldwide.

15 TSYS PRIORITIES Product Development SHAREHOLDER RISK & FRAUD CUSTOMER Client Experience Product Development DIGITAL EXPERIENCES CUSTOMER ACQUISITION Total System Services, Inc. Proprietary. All rights reserved worldwide.

17 TSYS PRIORITIES Compliance & Regulation SHAREHOLDER CUSTOMER CORPORATE Technology Compliance & Regulation MAJOR COMPLIANCE REGULATIONS U.S. FSG GLBA U.S.A. Freedom Act Bank Secrecy Act Foreign Corrupt Practices Act GDPR PCI-DSS U.S. Patriot Act MAJOR REGULATORY ENTITIES FFIEC SEC Federal Trade Commission CFPB European Union PCI Security Standards Council Card Associations Total System Services, Inc. Proprietary. All rights reserved worldwide.

Data Breach Response Exercise In-House, 24x7 Team Daily Incident Review

18 TSYS PRIORITIES Data Security SHAREHOLDER Enterprise Global Oversight CUSTOMER CORPORATE Technology Compliance & Regulation Data Security Annual Data Breach Response Exercise In-House, 24x7 Team Daily Incident Review Meetings Total System Services, Inc. Proprietary. All rights reserved worldwide.

Regulation Data Security Community-Focused 19 2017

19 TSYS PRIORITIES Community-Focused SHAREHOLDER CUSTOMER CORPORATE Technology Compliance & Regulation Data Security Community-Focused Total System Services, Inc. Proprietary. All rights reserved worldwide.

20 TSYS PRIORITIES SHAREHOLDER Team Member Priorities Talent CUSTOMER CORPORATE TEAM MEMBER Attract, Retain & Develop Talent Develop Our Leaders Great Work Place Great Work Place Always GROWING, IMPROVING & MOVING AHEAD Leadership Total System Services, Inc. Proprietary. All rights reserved worldwide.

21 TSYS PRIORITIES SHAREHOLDER CUSTOMER CORPORATE TEAM MEMBER Our Core Values Integrity Relationships Excellence Innovation Growth Total System Services, Inc. Proprietary. All rights reserved worldwide.

23 Accelerating Growth Capitalize on Industry Growth Expand Addressable Market MOMENTUM EXECUTION EXECUTION INNOVATION Grow Share of Wallet Total System Services, Inc. Proprietary. All rights reserved worldwide.

24 Digitalization Creating Additional Opportunities ISSUER SOLUTIONS Changing consumer spending patterns & service preference MERCHANT SOLUTIONS Transforming distribution & product offering NETSPEND Expanding access to financial solutions Total System Services, Inc. Proprietary. All rights reserved worldwide. ISV distribution Vertical focus PayFac Model

25 Partner of Choice Leveraging TSYS as Last Mile Effective & Efficient Sales Channels Enhanced Offerings PRODUCT PARTNERS DISTRIBUTION PARTNERS New Customer Segments Speed to Market Ease of Integration Total System Services, Inc. Proprietary. All rights reserved worldwide.

27 Segment Presentations ISSUER SOLUTIONS MERCHANT SOLUTIONS OVERVIEW MARKET OPPORTUNITIES NETSPEND GROWTH INITIATIVES Business evolution Product expansion Leveraging partnerships Total System Services, Inc. Proprietary. All rights reserved worldwide.

29 ISSUER SOLUTIONS OVERVIEW Scale & Leadership NET REVENUE (1) ~$1.5 billion ADJUSTED MARGIN (1) ~35% RECURRING REVENUES ~94% #1 in North America #2 in Europe #1 in China, via CUP Data JV 762 million accounts on file (1) Non-GAAP financial measure; see appendix Total System Services, Inc. Proprietary. All rights reserved worldwide.

31 ISSUER SOLUTIONS OVERVIEW Industry-Leading Suite of Integrated Solutions SERVICES Scale & Leadership Who We Serve What We Provide PROCESSING CUSTOMER ENGAGEMENT Consumers Small Businesses Corporations RISK & FRAUD ANALYTICS CARD & PRINT LOYALTY BACK OFFICE EPAYABLES Total System Services, Inc. Proprietary. All rights reserved worldwide.

32 ISSUER SOLUTIONS OVERVIEW MARKET OPPORTUNITY Annual Issuer Spend = ~$7 billion on processing and TSYS traditional offerings TSYS Net Revenue (1) Growing at ~3% CAGR through 2020 $1.5B EXPAND ADRESSABLE MARKET Marketing and customer acquisition Digital experiences and self-service $5.5B Opportunity Source is McKinsey Payments Map and TSYS analysis, for North America and Western Europe. (1) Non-GAAP financial measure; see appendix Total System Services, Inc. Proprietary. All rights reserved worldwide.

33 ISSUER SOLUTIONS Initiatives OVERVIEW MARKET OPPORTUNITY GROWTH INITIATIVES Integration of North America & International Cost optimization Business Evolution Client engagement model Fine-tuning sales & business development engine Total System Services, Inc. Proprietary. All rights reserved worldwide.

35 ISSUER SOLUTIONS Industry Situation: Challenges OVERVIEW Increase Customer Loyalty While Reducing Cost Digital Interaction Driving Changes In Fraud MARKET OPPORTUNITY CUSTOMER LOYALTY 12% increase COST PER CONTACT $ % 43% $0.10 Avg. Customer Digital Users In-Person Digital CNP Purchase Volume CNP Fraud Source: Bain & Company, Customer Loyalty in Retail Banking 2016 Source: U.S. CNP Fraud, Aite, February U.S. Payment Card Volume, Nilson, October Total System Services, Inc. Proprietary. All rights reserved worldwide.

36 ISSUER SOLUTIONS OVERVIEW Significant Spend Directed at Solving these Challenges Fraud & Risk Management MARKET OPPORTUNITY Customer Acquisition & Retention +$7 billion $5.2 billion Capability Expansion DOUBLES Our Available Market Digitalization of Customer Experiences Total System Services, Inc. Proprietary. All rights reserved worldwide.

Powered by Ethoca Leveraging Partnerships 70% Improved Call Resolution Time 30% Enhancement in CNP Fraud

37 ISSUER SOLUTIONS Partner to Deliver Products to Market Faster OVERVIEW MARKET OPPORTUNITY GROWTH INITIATIVES TSYS Customer Service TSYS Foresight Score with Featurespace TSYS Transaction Recovery Network Powered by Ethoca Leveraging Partnerships 70% Improved Call Resolution Time 30% Enhancement in CNP Fraud Detection 40% Reduced Overall Chargebacks Total System Services, Inc. Proprietary. All rights reserved worldwide.

38 ISSUER SOLUTIONS Product Priorities: OVERVIEW MARKET OPPORTUNITY GROWTH INITIATIVES Risk & Fraud Digital Experiences & Self-Service Marketing & Customer Acquisition Leveraging Partnerships Product Expansion DATA & ANALYTICS Business Insights & Benchmarking Predictive Analytics Enterprise Efficiencies Total System Services, Inc. Proprietary. All rights reserved worldwide.

41 MERCHANT SOLUTIONS OVERVIEW Scale & Leadership NET REVENUE (1) ~$0.9 billion ADJUSTED MARGIN (1) ~34% INTEGRATED CHANNEL ~30% #6 U.S. merchant acquirer #3 in integrated payments 1,200 distribution partners 657,000 merchant locations 4.5 billion transactions (1) Non-GAAP financial measure; see appendix Total System Services, Inc. Proprietary. All rights reserved worldwide.

42 MERCHANT SOLUTIONS Diversified Base of Business OVERVIEW Scale & Leadership Who We Serve Micro-Merchant Small Business Mid Market National INDUSTRIES SALON & SPA BUSINESS SERVICES WELLNESS HEALTHCARE GENERAL RETAIL GOVERNMENT ECOMMERCE & B2B Total System Services, Inc. Proprietary. All rights reserved worldwide.

43 MERCHANT SOLUTIONS OVERVIEW VALUE-ADDED SOLUTIONS Analytics and reporting Loyalty and marketing offers Security Scale & Leadership Who We Serve What We Provide PAYMENT TYPES Credit ACH Debit PayPal Prepaid Cash Check Mobile wallet BUY SELL POS SOLUTIONS Terminal Tablet POS ecommerce Integrated services Total System Services, Inc. Proprietary. All rights reserved worldwide.

44 MERCHANT SOLUTIONS INTEGRATED PARTNERS OVERVIEW Scale & Leadership Who We Serve What We Provide How We Go to Market FINANCIAL INSTITUTION PARTNERS DIRECT Total System Services, Inc. Proprietary. All rights reserved worldwide.

45 MERCHANT SOLUTIONS OVERVIEW MARKET OPPORTUNITY TSYS Net Revenue (1) Market Growth U.S. Merchant Acquiring Revenues = ~$18B $0.9B $17B Opportunity EXPAND ADDRESSABLE MARKET BUSINESS SOFTWARE Vertical-market business software VALUE ADDED SERVICES Closed commerce solution Expanded analytics and insights Integrated Payments ecommerce Acquiring Industry ~5% ~10% ~12% Source is McKinsey Payments Map and TSYS analysis. Growth rates are CAGRs from 2016 through (1) Non-GAAP financial measure; see appendix Total System Services, Inc. Proprietary. All rights reserved worldwide.

46 MERCHANT SOLUTIONS OVERVIEW Capturing the Revenue Benefits of TransFirst Integration TARGET END STATE MARKET OPPORTUNITY GROWTH INITIATIVES Partner-Centric Distribution Model One Platform Universal Boarding Unified Product Suite Business Evolution BENEFITS Revenue growth Scalability Customer experience Expense synergies Total System Services, Inc. Proprietary. All rights reserved worldwide.

47 MERCHANT SOLUTIONS Product Priorities: OVERVIEW MARKET OPPORTUNITY GROWTH INITIATIVES Business Evolution Enhance Smart Point-of-sale Payment Facilitation & Disbursements Vertical Market Software Value Added Services Product Expansion Total System Services, Inc. Proprietary. All rights reserved worldwide.

51 NETSPEND OVERVIEW Scale & Leadership NET REVENUE (1) ~$0.7 billion ADJUSTED MARGIN (1) ~24% #1 U.S. provider of prepaid debit cards (measured by GDV) 130,000+ reload locations 100,000+ distribution employers & locations DIRECT DEPOSIT CARDS ~55% (1) Non-GAAP financial measure; see appendix $28.7 billion in GDV 5.1 million active cards 2.9 million direct deposit Total System Services, Inc. Proprietary. All rights reserved worldwide.

NETSPEND Self-Banking Solutions MOBILE VIRTUAL OVERVIEW DDA OFFERS Scale & Leadership Who We Serve What We Provide Consumers Small Businesses Employers GPR COMMERCIAL

52 NETSPEND Self-Banking Solutions MOBILE VIRTUAL OVERVIEW DDA OFFERS Scale & Leadership Who We Serve What We Provide Consumers Small Businesses Employers GPR COMMERCIAL DIRECT DEPOSIT P2P TRANSFERS PAYCARD REMOTE DEPOSIT CAPTURE INCENTIVES/ DISBURSEMENTS FDIC-INSURED Total System Services, Inc. Proprietary. All rights reserved worldwide.

53 NETSPEND Leveraging Partners to Reach Customers DIRECT PARTNER OVERVIEW Scale & Leadership Who We Serve What We Provide How We Go to Market COMMERCIAL RETAIL Total System Services, Inc. Proprietary. All rights reserved worldwide.

54 NETSPEND OVERVIEW MARKET OPPORTUNITY TSYS Net Revenue (1) U.S. GPR & Paycard Prepaid Revenue = ~$4B Growing at ~5% CAGR through 2020 $0.7B $3.3B Opportunity EXPAND ADDRESSABLE MARKET CONSUMER DDA Affinity partnerships Mobile Hub BUSINESS Commercial GPR Paycard for contractors Incentive and disbursement Tips Source is McKinsey Payments Map, Euromonitor & TSYS Analysis. (1) Non-GAAP financial measure; see appendix Total System Services, Inc. Proprietary. All rights reserved worldwide.

TRANSFER MARKET OPPORTUNITY DIRECT DEPOSIT

FREE ATMs AT 7-ELEVEN GROWTH INITIATIVES

PAY GIFT CARDS 7REWARDS SM 55 2017 Total

55 NETSPEND OVERVIEW Providing a Digital Financial Solution for Retailers MONEY TRANSFER MARKET OPPORTUNITY DIRECT DEPOSIT 130K+ RELOAD LOCATIONS FDIC-INSURED TRANSIT FREE ATMs AT 7-ELEVEN GROWTH INITIATIVES Leveraging Partnerships Product Expansion ANYTIME ALERTS GPR MOBILE WALLET REFILL SAVINGS PROGRAM P2P TRANSFERS IN STORE BILL PAY GIFT CARDS 7REWARDS SM Total System Services, Inc. Proprietary. All rights reserved worldwide.

NETSPEND OVERVIEW Leveraging the Power of TSYS for Micro & Small Businesses

DEPOSIT 130K+ RELOAD LOCATIONS FDIC-INSURED GROWTH INITIATIVES Leveraging

DATA P2P TRANSFERS REMOTE DEPOSIT CAPTURE CATEGORY SPEND CONTROLS

56 NETSPEND OVERVIEW Leveraging the Power of TSYS for Micro & Small Businesses BUSINESS NAME ON THE CARD ACCEPT CARD PAYMENTS MARKET OPPORTUNITY DIRECT DEPOSIT 130K+ RELOAD LOCATIONS FDIC-INSURED GROWTH INITIATIVES Leveraging Partnerships COMMERCIAL GPR Product Expansion ANYTIME ALERTS EXPORT TAX DATA P2P TRANSFERS REMOTE DEPOSIT CAPTURE CATEGORY SPEND CONTROLS SUB-ACCOUNTS Total System Services, Inc. Proprietary. All rights reserved worldwide.

59 Strong Financial Performance ($millions) Net Revenue (1) Adj. Diluted EPS (1) ($millions) Free Cash Flow (1) G Issuer Merchant Netspend G G (1) Non-GAAP financial measure; see appendix Figures are based on mid-point of revised guidance Total System Services, Inc. Proprietary. All rights reserved worldwide.

60 Affirming 2017 Revised Guidance * TOTAL REVENUES (GAAP) $4,770 to $4,870 million RANGE PERCENT CHANGE 14% to 17% NET REVENUE (1) $3,295 to $3,395 million RANGE PERCENT CHANGE 8% to 12% DILUTED EARNINGS PER SHARE (GAAP) $2.25 to $2.32 RANGE PERCENT CHANGE 30% to 34% ADJUSTED DILUTED EARNINGS PER SHARE (1) $3.16 to $3.26 RANGE PERCENT CHANGE 13% to 17% Weighted Average Diluted Shares Outstanding = 185 million * See guidance assumptions in appendix (1) Non-GAAP financial measure; see appendix Total System Services, Inc. Proprietary. All rights reserved worldwide.

61 Accelerating Growth Capitalize on Industry Growth Expand Addressable Market MOMENTUM EXECUTION EXECUTION INNOVATION Grow Share of Wallet Total System Services, Inc. Proprietary. All rights reserved worldwide.

62 Longer-Term Financial Outlook ISSUER SOLUTIONS UPSIDE GROW WALLET SHARE Cross-selling and new client wins Risk and fraud management 5-7% CAGR (1) EXPAND ADDRESSABLE MARKET Enhanced digital experiences Marketing and customer acquisition ~3%+ CAGR INDUSTRY TSYS (1) Non-GAAP financial measure; constant currency; see appendix Total System Services, Inc. Proprietary. All rights reserved worldwide.

63 Longer-Term Financial Outlook MERCHANT SOLUTIONS UPSIDE 7-9% CAGR (1) GROW WALLET SHARE Grow distribution partnerships Merchant sales execution Smart POS Payment facilitation and disbursements ~5%+ CAGR EXPAND ADDRESSABLE MARKET Vertical market software Expanded analytics and insights INDUSTRY TSYS (1) Non-GAAP financial measure; constant currency; see appendix Total System Services, Inc. Proprietary. All rights reserved worldwide.

64 Longer-Term Financial Outlook NETSPEND ~5% CAGR UPSIDE 6-8% CAGR (1) GROW WALLET SHARE Grow existing distribution channels Mobile Hub DDA as a complement to GPR EXPAND ADDRESSABLE MARKET DDA upside Affinity partnerships Business solutions INDUSTRY TSYS (1) Non-GAAP financial measure; constant currency; see appendix Total System Services, Inc. Proprietary. All rights reserved worldwide.

65 Longer-Term Financial Outlook Strategy Drives Long-Term Organic Growth SEGMENT LONG-RANGE ANNUAL TARGETS CONSOLIDATED LONG-RANGE ANNUAL TARGETS SEGMENT ANNUAL MARKET GROWTH ORGANIC NET REVENUE GROWTH (1) Organic Net Revenue Growth (1) 6% - 8% Issuer ~3% 5% - 7% Adj. EBITDA Margin Growth (1) ~25-50 bps annually Merchant ~5%+ 7% - 9% Adj. Diluted EPS Growth (1) (including share repurchases) 9% - 13% Netspend ~5% 6% - 8% TOTAL 6% - 8% (1) Non-GAAP financial measure; constant currency; see appendix Total System Services, Inc. Proprietary. All rights reserved worldwide.

66 Creating Value through Capital Allocation Investing in Growth Leveraging Strong Balance Sheet Returning Capital to Shareholders Internal Investments & Acquisitions New products Technology enhancements Future acquisitions Long-Term Leverage Target of ~2.5x De-leveraging on track Share Repurchases & Dividends Target to return 75% of available free cash flow in share repurchases and dividends Total System Services, Inc. Proprietary. All rights reserved worldwide.

67 Capital Deployment for Growth Acquisitions $2.4 billion Capital Expenditures $582 million Share Repurchases $432 million Represents Total System Services, Inc. Proprietary. All rights reserved worldwide.

68 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 Total System Services, Inc. Proprietary. All rights reserved worldwide.

72 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: Nonoperating expense 112,168 Add: Depreciation and amortization 373,546 EBITDA $946,928 Adjust for: Add: Share-based compensation 43,728 Add: TransFirst M&A expenses (1) 28,175 Add: Litigation, claims, judgments or settlements 21,719 Adjusted EBITDA $1,040,550 (1) Costs associated with the TransFirst acquisition and integration that are included in selling, general and administrative expenses Total System Services, Inc. Proprietary. All rights reserved worldwide.

73 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, , , ,597 Net revenue $3,041,876 $2,499,349 $2,192,978 $1,823,708 * Relates to acquisition of TransFirst, which closed April 1, Total System Services, Inc. Proprietary. All rights reserved worldwide.

74 Appendix: Non-GAAP Reconciliation Adjusted EPS (in thousands, except per share data) Income from continuing operations attributable to TSYS common shareholders: Twelve Months Ended 12/31/16 12/31/15 12/31/14 12/31/13 As reported (GAAP) (a) $319,638 $362,633 $275,216 $246,893 Adjusted for amounts attributable to TSYS common shareholders: Add: Acquisition intangible amortization 188,887 91,418 95,743 63,821 Add: Share-based compensation 43,691 41,535 30,790 28,933 Add: TransFirst & Netspend M&A expenses (1) 37, ,217 19,594 Add: Litigation, claims, judgments and settlements 19, Less: Tax impact of adjustments (2) (93,667) (43,474) (40,564) (33,524) Adjusted earnings (b) $516,419 $452,112 $364,402 $325,717 Weighted average diluted shares outstanding and participating securities (c) Diluted EPS - income from continuing operations available to TSYS common shareholders (a) / (c) Adjusted diluted EPS- income from continuing operations available to TSYS common shareholders (b) / (c) 184, , , ,039 $1.73 $1.96 $1.47 $1.30 $2.80 $2.44 $1.94 $1.71 (1) Costs associated with the TransFirst acquisition and integration that are included in selling, general and administrative expenses and nonoperating expenses. (2) Certain of these merger and acquisition costs are nondeductible for income tax purposes. Income tax impact includes a discrete item as a result of the acquisition Total System Services, Inc. Proprietary. All rights reserved worldwide.

75 Appendix: Non-GAAP Reconciliation Free Cash Flow (in thousands) Twelve Months Ended 12/31/ /31/ /31/ /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 $324,278 $258, Total System Services, Inc. Proprietary. All rights reserved worldwide. 75

76 Appendix: Non-GAAP Reconciliation Adjusted Segment Operating Income & Operating Margin Twelve Months (in thousands) Ended 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 (189,991) Less: Corporate admin and other (179,724) Less: TransFirst M&A expenses (1) (28,175) Less: Litigation, claims, judgments or settlements (21,719) Operating income $573,382 Net revenue By segment: Issuer Solutions (d) $1,515,462 Merchant Solutions (e) 898,533 Netspend (f) 663,579 Less: Intersegment revenues (35,698) Add: Reimbursable items, interchange and assessments expenses 1,128,201 Total revenues $4,170,077 Adjusted segment operating margin: Issuer Solutions (a) / (d) 34.64% Merchant Solutions (b) / (e) 34.23% Netspend (c) / (f) 24.17% (1) Costs associated with the TransFirst acquisition and integration that are included in selling, general and administrative expenses Total System Services, Inc. Proprietary. All rights reserved worldwide.

77 Appendix: 2017 Revised Guidance* (in millions, except per share data) Revenue: Total revenues (GAAP) Range Range Percent Change $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 $ % to 34% Adjusted diluted EPS attributable to TSYS common shareholders (1) (non- GAAP) $3.16 to $ % to 17% Weighted average diluted shares outstanding 185 *See guidance assumptions in appendix Total System Services, Inc. Proprietary. All rights reserved worldwide.

78 Appendix: Non-GAAP Reconciliation Net Revenue (in thousands) Three Months Ended 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, Total System Services, Inc. Proprietary. All rights reserved worldwide.

79 Appendix: Non-GAAP Reconciliation EBITDA & Adjusted EBITDA (in thousands) Three Months Ended 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 22,098 Add: Depreciation and amortization 104,178 67,583 EBITDA $271,361 $219,270 Adjust for: Add: Share-based compensation 9,047 8,158 Add: TransFirst M&A expenses (1) 4,868 3,401 Add: Litigation, claims, judgments or settlements 1, Adjusted EBITDA $287,237 $230,829 (1) Costs associated with the TransFirst acquisition and integration that are included in selling, general and administrative expenses Total System Services, Inc. Proprietary. All rights reserved worldwide.

80 Appendix: Non-GAAP Reconciliation Adjusted Diluted EPS (in thousands, except per share data) Income from continuing operations attributable to TSYS common shareholders: Three Months Ended 3/31/17 3/31/16 As reported (GAAP) (a) $105,868 $90,628 Adjust for amounts attributable to TSYS common shareholders: Add: Acquisition intangible amortization 55,002 22,645 Add: Share-based compensation 9,041 8,149 Add: TransFirst M&A expenses (1) 4,825 13,183 Add: Litigation, claims, judgments and settlements 1, Less: Tax impact of adjustments (2) (24,432) (13,895) Adjusted earnings (b) (non-gaap) $152,265 $120,710 Weighted average diluted shares outstanding (c) 184, ,886 Diluted EPS Net income attributable to TSYS common shareholders (a) / (c) (GAAP) Adjusted diluted EPS- Net income attributable to TSYS common shareholders (b) / (c) (non-gaap) $0.57 $0.49 $0.82 $0.66 (1) Costs associated with the TransFirst acquisition and integration that are included in selling, general and administrative expenses and nonoperating expenses. (2) Certain of these merger and acquisition costs are nondeductible for income tax purposes. Income tax impact includes a discrete item as a result of the acquisition Total System Services, Inc. Proprietary. All rights reserved worldwide.

81 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 currency exchange rates related to TSYS business; TSYS will not incur significant expenses associated with the conversion of new large clients, additional acquisitions, or any significant impairment of goodwill or other intangibles; There will be no deconversions of large clients during the year other than as previously disclosed; and The economy will not worsen. Additionally, the impact of future share repurchases is not included Total System Services, Inc. Proprietary. All rights reserved worldwide.

82 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 necessary components of such measures Total System Services, Inc. Proprietary. All rights reserved worldwide.

TSYS Analyst Day May 20, Total System Services, Inc. All rights reserved worldwide.

TSYS Analyst Day May 20, Total System Services, Inc. All rights reserved worldwide. TSYS Analyst Day May 20, 2015 > FORWARD-LOOKING STATEMENTS This presentation and comments made by management contain forward-looking statements including, among others, statements regarding the expected