The Western Union Company (WU) 8-K This presentation contains historical financial information presented to reflect the spin-off of

Investor Presentation

September 18, 2006

Exhibit 99.1

2

Safe Harbor

Historical

Financial

Results

This presentation contains historical financial information presented to reflect the spin-off of

Western Union from First Data Corp. as of the date reflected herein.  Audited financial statements

are available for Western Union in its Form 10 Registration Statement.

Safe

Harbor

Compliance

Statement

for

Forward-Looking

Statements

This presentation contains forward-looking statements regarding projected future results.  All

forward-looking

statements

are

inherently

uncertain

as

they

are

based

on

various

expectations

and

assumptions concerning future events and they are subject to numerous known and unknown risks

and uncertainties that could cause actual events or results to differ materially from those projected. 

For more information on important factors upon which these forward-looking statement are

premised, please refer to First Data’s Form 10-K/A for the year ended December 31, 2005 filed with

the

Securities

and

Exchange

Commission

and

The

Western

Union

Company’s

Form

10

Registration

Statement, as amended, filed with the Securities and Exchange Commission.

3

Transaction Summary

NYSE: WU

1 : 1

765 million

Listing:

Dividend Ratio:

Est. Shares Outstanding

(post-distribution):

Distribution Timeline:

Record Date

Distribution Date

September 22

September 29

Business Overview

Christina A. Gold, Chief Executive Officer,

Western Union

5

The Global Leader in Money Transfer

•

Providing high-value consumer services for over 150 years

•

Vast distribution network of over 270,000 agent locations

in more than 200 countries and territories

•

Established brands, including Western Union,

Orlandi Valuta and Vigo

•

Strong financial performance

6

We Operate in Two Segments

114M

145M

179M

193M

215M

2001

2002

2003

2004

2005

•

Primarily U.S. business, exploring

international opportunities

Consumer-to-Business (C2B)

’05 Revenue = $600 million

’05 EBIT = $220 million

•

Strong, consistent growth

Consumer-to-Consumer (C2C)

’05 Revenue = $3.3 billion

’05 EBIT = $1.0 billion

C2C Transactions

C2B Transactions

56M

68M

81M

97M

119M

2001

2002

2003

2004

2005

7

$4.0

$3.5

$3.2

2003

2004

2005

Revenue

Operating Profit

$1.3

$1.1

$1.0

2003

2004

2005

Cash Flow From

Operating Activities

CAGR

12%

CAGR

12%

CAGR

12%

Proven Track Record

$1.0

$0.9

$0.8

2003

2004

2005

$ in billions

8

We Are Uniquely Positioned in an Attractive Industry

2.  Unmatched distribution network and brand

1.  Compelling long-term market opportunity

3.  Operational excellence

4.  World class Management Team and Board

9

Favorable Trends In Global Migration

•

The global migrant population is expected to grow from 191 million in 2005 to more than 280 million in

2050

(1)

•

Major emigration countries include China, India, Mexico, Philippines, where Western Union

is well positioned

Global Migration

(1)

United Nations 2005 & 2006

WU service available

China

Philippines

India

Mexico

1.   MA

R

K

E

T   O

P

P

O

R

T

U

N

I

T

Y

10

Capturing the Opportunity –

Outperforming the Market

Western Union Percent of

Cross-Border Remittance Principal

Cross-Border

Remittance Principal Market

CAGR

8%

Source:  Aite

Group, LLC, January 2005

2005 includes Vigo

$249B

$213B

2003

2005

15%

10%

2003

2005

1.   MA

R

K

E

T   O

P

P

O

R

T

U

N

I

T

Y

Principal CAGR = 28%

11

An Unmatched Global Distribution Network

•

Over 270,000 agent

locations; 15,000 plus Global

Corridors

•

80% of agent locations

outside of the US

Western Union Locations

(In thousands)

270 +

120

2001

2Q06

United States,

Canada

Latin America,

Caribbean

Europe, Mid-East

Africa, S. Asia

Asia Pacific

Global Distribution

2.   U

N

M

A

T

C

H

E

D   D

I

S

T

R

I

B

U

T

I

O

N

,   B

R

A

N

D

12

An Unmatched Global Distribution Network

•

600+ Super Agents

•

Long-term contracts average 5 years

–

Top 40 agents have average tenure of more than 12 years

•

Local knowledge and market expertise

2.   U

N

M

A

T

C

H

E

D   D

I

S

T

R

I

B

U

T

I

O

N

,   B

R

A

N

D

Long-Standing Agent Relationships

ANGELO

COSTA

Russian Post

13

World Leading Brand

Connecting with customers everyday, everywhere

2.   U

N

M

A

T

C

H

E

D   D

I

S

T

R

I

B

U

T

I

O

N

,   B

R

A

N

D

14

Consistent Service and Brand Message

81%

spontaneous

brand

awareness

among money

transfer users

in Western

Europe

Research International, July 2005

2.   U

N

M

A

T

C

H

E

D   D

I

S

T

R

I

B

U

T

I

O

N

,   B

R

A

N

D

15

Operational Excellence Delivered

•

Handling on average one million transactions daily, or 12 per second

•

Ability to pay money transfers in over 120 currencies

•

Flexible system operates within agent’s existing

computer environment

–

Settlement and reconciliation software helps agents monitor key aspects of their

business, including transactions, profitability and cash flow

•

Multiple interfaces supported to accommodate consumer preferences

–

Telephone and Internet services

–

Money transfers paid directly to a bank account

Money anywhere in the world in minutes

3.   O

P

E

R

A

T

I

O

N A L   E

X

C

E

L

L

E

N

C

E

16

Extensive and Growing Compliance Effort

•

Senior management committed to deliver best-in-class compliance

–

2006 investment will exceed $35 million

–

250 dedicated employees in 2006, regionally located

–

Proprietary monitoring, analysis, and reporting systems

–

Ongoing enhancements

•

Three pillars of Anti-Money Laundering (AML)

1)

Comply with all AML laws everywhere we do business

2)

Provide support and guidance to our agents worldwide

3)

Educate and guide policy makers and regulatory bodies globally

3.   O

P

E

R

A

T

I

O

N A L   E

X

C

E

L

L

E

N

C

E

17

Seasoned Management Team

Hikmet Ersek

EVP and Managing Director

Europe/Middle East/Africa/South Asia

7 years with WU

David Schlapbach

General Counsel and Secretary

10 years with WU

Strong Corporate Leadership

Ian Marsh

EVP  and Managing Director,

Asia Pacific Region

2 years with WU

William Thomas

President, Americas

6 years with WU

Christina Gold

President &

CEO

4 years with WU / FDC

Guy Battista

EVP  and President,

Western Union Financial Services

16 years with WU / FDC

Royal Cole

EVP and General Manager,

Western Union Bill Payment Services

15 years with WU

Grover Wray

EVP, Human Resources

Scott Scheirman

EVP and CFO

14 years with WU / FDC

Richard Badler

EVP, Corporate Communications

and Public Affairs

David Barnes

EVP, Finance and Strategic

Development

Robin Heller

EVP, Operations and IT

18 years with WU / FDC

4.   W

O

R

L

D   C

L

A S S   L

E

A

D

E

R

S

H

I

P

Growth Strategies

19

Well Defined Growth Strategy

•

Build our brands and enhance our consumer’s experience

–

Invest approximately 7% of revenue annually in marketing

–

Strategic C2C pricing investment of approximately 3% of annual revenue

–

Expand customer relationship management (Gold Card and database)

•

Develop consumer convenience and choice

–

Offer services with enhanced customer benefits

•

Explore new service offerings

–

Prepaid services, direct to bank service

Accretive acquisitions with a focus on emerging markets

•

Expand and diversify global distribution

–

Maximize the global network

–

Leverage existing locations to launch services

20

Delivering on Our Growth Strategies

•

Customer Relationship

–

Customer database

–

Gold Card

•

6.5 million active cards; available in

58 countries

•

Gold Card used in 39% of C2C transactions

in the U.S., up from 26% a year ago

•

Continuity of Income -

COI

•

Intra-Country Transfers

–

Philippines

–

Chile

•

Mexico Outbound

–

Approx. a $15 million business in 2006

•

WesternUnion.com

–

Two-thirds of users are new to

Western Union

–

Revenue and transaction growth at about 40%

–

$100 million business in 2006

–

Currently in 9 countries, continued global roll

out

1.5M

3.0M

5.0M

6.5M

2003

2004

2005

2Q 2006

Active Loyalty Cards

21

Delivering on Our Growth Strategies

•

Consumer-to-business

–

New channels

•

Cross border payments

•

Catalog payments

•

Government payments

–

Highly attractive international opportunity

•

Strategy includes acquisitions

•

Western Union Bank

–

9 company owned locations

–

Powers Western Union Prepaid Card

•

5,000 in test currently

–

License makes Westernunion.com

possible in

Europe

Market Dynamics

and Challenges

23

Mexico and Domestic Performance

3%

10%

24%

24%

23%

2004

2005

Q1 '06

Q2 '06

Q3

Through

9/14

WU Branded US to Mexico

(YoY

Transaction growth)

Domestic*

(YoY

Transaction growth)

4%

5%

8%

1%

-4%

2004

2005

Q1 '06

Q2 '06

*Excludes  Vigo.

Q3 Through

9/14

24

Short-Term U.S. Challenges

Western Union’s Priorities

•

Consumer outreach and education

•

Target promotions

•

Cross-sell Domestic Service

to outbound senders

•

Agent recruitment 

Challenges

•

Uncertainty about immigration

reform

–

Increased government scrutiny

–

Resulting job uncertainty

–

Increased competitive activity as

industry slowed

25

C2C Transaction Trends*

(YoY

growth %)

Overall and International Performance

20%

21%

19%

15%

2004

2005

Jun '06

YTD

Q3

Through

9/14

International Transaction Trends*

(YoY

growth %)

26%

26%

24%

23%

2004

2005

Jun '06

YTD

Q3

Through

9/14

*Excludes  Vigo

26

U.S., Canada = 8%

L. America &

C. America = 11%

Europe, Mid-East, Africa,

S. Asia = 29%

Asia Pacific = 49%

2000 –

2005 CAGR by Region

C2C Geographic Diversity Mitigates Risk

Outside the U.S. & Mexico, no single country represents >10% of revenue

Consumer-to-Consumer Revenue

2000

$1.5B

2005

$3.3B

27%

20%

52%

1%

44%

36%

5%

15%

27

We Are Uniquely Positioned in an Attractive Industry

2.  Unmatched distribution network and brand

1.  Compelling long-term market opportunity

3.  Operational excellence

4.  World class Management Team and Board

Financial Performance

29

Strong Financial Model

Consistent revenue

growth

•

12% CAGR in revenues

since 2003

Highly profitable

•

12% CAGR in operating

profit since 2003

Strong cash

flows

•

Over $1 billion in

operating cash flow in

2005

30

Proven Track Record

Revenue

CAGR

12%

Operating Profit

$1.3B

$1.1B

$1.0B

2003

2004

2005

CAGR

12%

Cash Flow From

Operations

CAGR

12%

$0.6B

$0.6B

$0.6B

2003

2004

2005

C2B Revenue

CAGR

1%

$2.5B

$2.9B

$3.3B

2003

2004

2005

C2C Revenue

CAGR

16%

$4.0B

$3.5B

$3.2B

2003

2004

2005

$1.0B

$0.9B

$0.8B

2003

2004

2005

31

Financial Update

•

Key Operating Assumptions for Second Half 2006 and 2007:

–

Strong international business growth

–

Continued near-term challenges in US market in 2006

–

2007 assumes improvement from trends since Q2 2006 in the US market, but not

returning to 2005 trends

–

Higher spending in 2007 to support growth initiatives

•

Other Key Inputs

–

Incremental annual expenses of $65-75 million from independent company

structure

–

One-time spin-off expenses of $15-20 million

–

Non cash adjustments related to SFAS 133

–

$3.5 billion debt on spin date

–

Modest annual dividend

32

2006 Financial Guidance

$1,320M -

$1,340M (D)

4% -

6%

$641M (B)

5%

Operating

Income,

excluding

spin

expenses

(C):

non-recurring and ongoing

Growth

$4.4B -

$4.5B

11% -

12%

$2.2B

(A)

13%

Total Revenue

Growth

FY 2006

6 Months

June 30, 2006

(A)

Includes $68 million of revenue related to the acquisition of Vigo in October 2005.

(B)

Includes $11 million of stock compensation, SFAS 123R expense.

(C)

Spin expenses represent estimated incremental expenses associated with operating as a stand-alone company.  Ongoing spin expenses relate to

staffing additions and related costs to replace First Data support, corporate governance, information technology, corporate branding and global

affairs, benefits and payroll administration, procurement, and other expenses related to being a stand-alone company.  Non-recurring spin

expenses

relate

to

recruiting

and

relocation

expenses

associated

with

hiring

key

management

positions

new

to

our

company,

other

employee

compensation expenses and temporary labor used to develop ongoing processes.  See reconciliation to Operating Income (GAAP) in Appendix.

(D)

Growth

in

Operating

Income

excluding

spin

expenses:

non-recurring

and

ongoing

in

Q3

06

is

expected

to

be

below

the

4%

-

6%

range

and

Operating

Income

excluding

spin

expenses

in

Q4

06

is

expected

to

be

above

the

4%

-

6%

range.

Expense

timing

and

other

factors

drive

the

majority of the expected profit growth differences in Q3 and Q4.

33

2007 Growth Outlook

Operating Income

Total Revenue

10% -

12%

6% -

9%

Excluding spin expenses

Non-recurring and ongoing (A)

(A)

Spin expenses represent estimated incremental expenses associated with operating as a stand-alone company.  Ongoing spin expenses relate to

staffing additions and related costs to replace First Data support, corporate governance, information technology, corporate branding and global

affairs, benefits and payroll administration, procurement, and other expenses related to being a stand-alone company.  Non-recurring spin

expenses

relate

to

recruiting

and

relocation

expenses

associated

with

hiring

key

management

positions

new

to

our

company,

other

employee

compensation expenses and temporary labor used to develop ongoing processes.  See reconciliation to Operating Income (GAAP) in

Appendix.

Note: Revenue and operating income guidance exclude any potential impact from future acquisitions.

34

Long Term Growth Objectives

Operating Income

Revenue

10% -

12%

EPS

10% -

12%

12% -

14%

Note: Revenue and operating income guidance exclude any potential impact form future acquisitions.

35

Key Financial Assumptions

Assumptions

FY 2007

FY 2006

Six Months

June 30, 2006

2007 adversely impacted by spin

expenses, interest expense, and changes

in working capital

~ $0.9B

~ $1.0B

$0.5B

Cash Flow from Operating

Activities

Investments in the business

$200M -

$250M

$200M -

$225M

$114M

Capital Expenditures

No material impact from FIN 48

32% -

33%

32% -

33%

32%

Tax Rate

New debt structure offset by cash

balances

($115M) –

($135M)

$25M –

$35M

$41M

Net interest income, interest

expense, and other

Euro at 1.28 and hedges re-designated as

cash flow hedges

$0

($20M) –

($30M)

($31M)

Derivative (losses) / gains and

FX effect on notes receivable

from affiliates (FAS 133)

Spin costs represents estimated

incremental costs associated with

operating as a stand-alone company. (A)

$0M -

$10M

$65M -

$75M

$15M -

$20M

$20M -

$25M

$2M

$0

Spin Expenses

Non-recurring

Ongoing

(A)

Spin expenses represent estimated incremental expenses associated with operating as a stand-alone company.  Ongoing spin expenses relate to staffing

additions and related costs to replace First Data support, corporate governance, information technology, corporate branding and global affairs, benefits and

payroll administration, procurement, and other expenses related to being a stand-alone company.  Non-recurring spin expenses relate to recruiting and

relocation

expenses

associated

with

hiring

key

senior

management

positions

new

to

our

company,

other

employee

compensation

expenses

and

temporary

labor used to develop ongoing processes.  See reconciliation to Operating Income (GAAP) in Appendix.

36

2007 Guidance Policy

•

Provide annual guidance and long-term outlook

–

metrics to best communicate outlook for the business

•

Update guidance when outlook is meaningfully different from

current guidance

•

Set guidance at reasonable and achievable goals

•

Communicate with investors in a balanced and open manner

regarding opportunities and challenges we face

•

Respect the differing opinions of analysts, positive and negative,

and provide equal access regardless of an analyst’s opinion

37

Financial Policies –

Cash Priorities

•

Paying down debt to achieve optimal levels

–

Target long-term ratios to support A rating

–

2007 pay down up to $500 million

•

Investing for future growth

–

Investments in core business

–

Acquiring closely related businesses

•

Returning capital to shareholders

–

Paying modest dividend

–

Repurchasing shares

•

Up to $400 million in 2007

38

We Are Uniquely Positioned in an Attractive Industry

2.  Unmatched distribution network and brand

1.  Compelling long-term market opportunity

3.  Operational excellence

4.  World class Management Team and Board

Appendix

40

Reg G Reconciliation

Management believes the following measures provide meaningful information

to assist investors and analysts in understanding our financial results and to

better analyze trends in our underlying business. The non-GAAP financial

measures should not be considered in isolation or as a substitute for the most

comparable GAAP financial measures. The non-GAAP financial measures reflect

an additional way of viewing aspects of our operations that, when viewed with

our GAAP results and the reconciliation to the corresponding GAAP financial

measures, provide a more complete understanding of our business.

Investors

are strongly encouraged to review our financial statements and publicly-filed

reports in their entirety and not to rely on any single financial measure. A

reconciliation of the non-GAAP measures to the most directly comparable GAAP

financial measures are contained in this appendix.

41

Reg G Reconciliation –

Operating Income

(in millions)

Operating Income excluding spin expenses: non-recurring and ongoing has been displayed to allow the financial

reader improved comparability on financial performance between 2006.  However the financial reader should be

aware that ongoing spin expenses are part of the company’s future cost structure.

YTD

June 30, 2006

FY 2006

Operating Income,

$641

$1,320

to

$1,340

excluding spin expenses:

4%

6%

non-recurring and ongoing

Less spin expenses

Non-recurring

2

20

20

Ongoing

20

20

Total spin expenses

2

40

40

Operating Income (GAAP)

$639

$1,280

to

$1,300

1%

2%