The Western Union Company (WU) 8-K Western Union Reports First Quarter Results

Western Union

First Quarter 2012

Earnings Webcast & Conference Call

April 24, 2012

Exhibit 99.2

Mike Salop

Senior Vice President, Investor Relations

*

*

*

*

*

*

*

*

*

New segment structure beginning Q1 2012

Consumer-to-Consumer (C2C) now reporting six regions:

Europe and Commonwealth of Independent States (CIS)

North America including US, Canada, Mexico

Middle East and Africa

Asia Pacific including India and South Asia (APAC)

Latin America and the Caribbean (LACA)

westernunion.com (from all geographic regions)

Consumer-to-Business (C2B)

Business Solutions

Other (primarily Retail Money Order, Prepaid and Mobile

Money Transfer)

3

Q1 New Segment Structure

Safe Harbor

4

This presentation contains certain statements that are forward-looking within the meaning of the Private Securities Litigation Reform Act of 1995. These statements are

not

guarantees

of

future

performance

and

involve

certain

risks,

uncertainties

and

assumptions

that

are

difficult

to

predict.

Actual

outcomes

and

results

may

differ

materially

from

those

expressed

in,

or

implied

by,

our

forward-looking

statements.

Words

such

as

“expects,”

“intends,”

“anticipates,”

“believes,”

“estimates,”

“guides,”

“provides

guidance,”

“provides

outlook”

and

other

similar

expressions

or

future

or

conditional

verbs

such

as

“will,”

“should,”

“would”

and

“could”

are

intended

to

identify

such

forward-looking

statements.

Readers

of

this

presentation

by

The

Western

Union

Company

(the

“Company,”

“Western

Union,”

“we,”

“our”

or

“us”)

should

not

rely

solely

on

the

forward-looking

statements

and

should

consider

all

uncertainties

and

risks

throughout

the

Annual

Report

on

Form

10-K

for

the

year

ended

December

31,

2011, including those described under “Risk Factors”. The statements are only as of the date they are made, and the Company undertakes no obligation to update any

forward-looking statement.

Possible events or factors that could cause results or performance to differ materially from those expressed in our forward-looking statements include the following: (i)

events

related

to

our

business

and

industry,

such

as:

deterioration

in

consumers'

and

clients'

confidence

in

our

business,

or

in

money

transfer

and

payment

service

providers generally; changes in general economic conditions and economic conditions in the regions and industries in which we operate, including global economic

downturns

and

financial

market

disruptions;

political

conditions

and

related

actions

in

the

United

States

and

abroad

which

may

adversely

affect

our

business

and

economic

conditions

as

a

whole;

interruptions

of

United

States

government

relations

with

countries

in

which

we

have

or

are

implementing

material

agent

contracts;

changes

in,

and

failure

to

manage

effectively

exposure

to,

foreign

exchange

rates,

including

the

impact

of

the

regulation

of

foreign

exchange

spreads

on

money

transfers

and

payment

transactions;

changes

in

immigration

laws,

interruptions

in

immigration

patterns

and

other

factors

related

to

migrants;

our

ability

to

adapt

technology

in

response

to

changing

industry

and

consumer

needs

or

trends;

our

failure

to

develop

and

introduce

new

services

and

enhancements,

and

gain

market

acceptance

of

such

services;

mergers,

acquisitions

and

integration

of

acquired

businesses

and

technologies

into

our

Company,

and

the

realization

of

anticipated

financial

benefits

from

these

acquisitions;

decisions

to

downsize,

sell

or

close

units,

or

to

transition

operating

activities

from

one

location

to

another

or

to

third

parties,

particularly transitions from the United States to other countries; decisions to change our business mix; failure to manage credit and fraud risks presented by our agents,

clients and consumers or non-performance by our banks, lenders, other financial services providers or insurers; adverse movements and volatility in capital markets and

other

events

which

affect

our

liquidity,

the

liquidity

of

our

agents

or

clients,

or

the

value

of,

or

our

ability

to

recover

our

investments

or

amounts

payable

to

us;

any

material

breach

of

security

or

safeguards

of

or

interruptions

in

any

of

our

systems;

our

ability

to

attract

and

retain

qualified

key

employees

and

to

manage

our

workforce

successfully;

our

ability

to

maintain

our

agent

network

and

business

relationships

under

terms

consistent

with

or

more

advantageous

to

us

than

those

currently

in

place;

adverse rating actions by credit rating agencies; failure to compete effectively in the money transfer industry with respect to global and niche or corridor money transfer

providers,

banks

and

other

money

transfer

services

providers,

including

telecommunications

providers,

card

associations,

card-based

payment

providers

and

electronic

and

Internet

providers;

our

ability

to

protect

our

brands

and

our

other

intellectual

property

rights;

our

failure

to

manage

the

potential

both

for

patent

protection

and

patent

liability

in

the

context

of

a

rapidly

developing

legal

framework

for

intellectual

property

protection;

changes

in

tax

laws

and

unfavorable

resolution

of

tax

contingencies;

cessation

of

various

services

provided

to

us

by

third-party

vendors;

material

changes

in

the

market

value

or

liquidity

of

securities

that

we

hold;

restrictions

imposed

by

our

debt

obligations;

significantly

slower

growth

or

declines

in

the

money

transfer

market

and

other

markets

in

which

we

operate;

changes

in

industry

standards

affecting

our

business;

(ii)

events

related

to

our

regulatory

and

litigation

environment,

such

as:

the

failure

by

us,

our

agents

or

their

subagents

to

comply

with

laws

and

regulations

designed

to

detect

and

prevent

money

laundering,

terrorist

financing,

fraud

and

other

illicit

activity;

changes

in

United

States

or

foreign

laws,

rules

and

regulations

including

the

Internal

Revenue

Code,

governmental

or

judicial

interpretations

thereof

and

industry

practices

and

standards;

liabilities

resulting

from

a

failure

of

our

agents or subagents to comply with laws and regulations; increased costs due to regulatory initiatives and changes in laws, regulations and industry practices and

standards affecting our agents; liabilities and unanticipated developments resulting from governmental investigations and consent agreements with, or enforcement

actions by, regulators, including those associated with compliance with, or a failure to comply with the settlement agreement with the State of Arizona; the impact on our

business of the Dodd-Frank Wall Street Reform and Consumer Protection Act, the rules promulgated there-under and the creation of the Consumer Financial Protection

Bureau; liabilities resulting from litigation, including class-action lawsuits and similar matters, including costs, expenses, settlements and judgments; failure to comply

with regulations regarding consumer privacy and data use and security; effects of unclaimed property laws; failure to maintain sufficient amounts or types of regulatory

capital to meet the changing requirements of our regulators worldwide; changes in accounting standards, rules and interpretations; and (iii) other events, such as:

adverse

consequences

from

our

spin-off

from

First

Data

Corporation;

catastrophic

events;

and

management's

ability

to

identify

and

manage

these

and

other

risks.

Hikmet Ersek

President

& Chief Executive Officer

*

*

*

*

*

*

*

*

*

C2C revenue growth accelerated

4% reported, or 5% constant currency*

Reached 500,000 Agent locations in April

Business Solutions integration on track

Pro forma revenue growth 5%, or 4% constant currency*

Strong progress in Ventures

westernunion.com money transfer revenue increased 39%

6

Q1 Highlights

Returned over $200 million through                             

buyback and dividends

*Note: See appendix for reconciliation of Non-GAAP to GAAP financial measures.

New services

WU Pay electronics payment platform launched

Key agreements

Mobile money transfer to integrate with Ericsson’s platforms

Acxsys agreement for international account based money

transfer for customers of Canadian banks

Business Solutions launched pension payment services for

Mercer Outsourcing in the U.K. enabling payments to 80

countries

7

Q1 Highlights

Scott Scheirman

Executive Vice President

Chief Financial Officer & Global Operations

*

*

*

*

*

*

*

*

*

Revenue

9

($ in millions)

*Note: See appendix for reconciliation of Non-GAAP to GAAP financial measures.

Consolidated revenue up 9%

reported and constant currency

adjusted*

Pro forma revenue increase

4%, or 5% constant currency,

including Travelex Global

Business Payments (TGBP) in

prior period*

Transaction fees increased 4%

Foreign exchange revenue

increased 26%

TGBP acquisition aided FX

revenue

Consumer-to-Consumer

10

C2C 81% of Company revenue

C2C revenue growth of 4% reported, or 5% constant currency*

Transaction growth of 7%

Total Q1 Western Union cross-border principal of $18 billion

Increased 2% on a reported basis

Increased 3% constant currency*

Principal per transaction

Declined 4% on a reported basis

Declined 3% on a constant currency basis*

*Note: See appendix for reconciliation of Non-GAAP to GAAP financial measures.

Consumer-to-Consumer

11

Regions

Revenue

Growth

Transaction

Growth

% of Total

Revenue

Europe and CIS

0%

1%

22%

North America

5%

6%

21%

Middle East and Africa

6%

9%

15%

Asia Pacific

7%

6%

12%

Latin America and Caribbean

2%

8%

9%

westernunion.com

39%

41%

2%

Q1 2012

Electronic Channels & Prepaid Highlights

Account-based money transfer

Revenue increased 43%

Agreements in place with nearly 90 banks globally

westernunion.com

C2C revenue increased 39%

Total WU.com revenue increased 37% (includes C2B)

Prepaid

Revenue increased 17%

Over $260 million loaded through 600,000 loads

12

Electronic Channels Revenue Growth 38%

C2C Transaction and Revenue Growth

13

Q1 2012

*Note: See appendix for reconciliation of Non-GAAP to GAAP financial measures.

Consumer-to-Business

14

C2B 11% of Company revenue

Revenue increased 1%, or 3% constant currency*

Led by growth in South America

*Note: See appendix for reconciliation of Non-GAAP to GAAP financial measures.

Business Solutions

15

Business Solutions 6% of Company revenue

Pro forma revenue increased 5%*, or 4% constant currency*, including

TGBP in the prior year period

Strong growth in Australia, softness in North America and the U.K.

New customer acquisitions remain strong

Integration of TGBP progressing on track

*Note: See appendix for reconciliation of Non-GAAP to GAAP financial measures.

16

Operating Margin

GAAP

Excluding

Restructuring and

TGBP Integration

Expenses*

Operating margin excluding

restructuring expense and TGBP

integration expense declined 200

basis points

•

Business Solutions results

negatively impacted margin,

including $10 million of

incremental TGBP intangibles

amortization

•

Higher marketing, additional

investments, compliance

costs, and timing of expenses, 

partially offset by benefits from

revenue leverage, currency,

restructuring savings and

reduced bank fees

•

Expect full year margin to be in

line with financial outlook

*Note: See appendix for reconciliation of Non-GAAP to GAAP financial measures.

17

C2C Operating Margin

Operating margin decreased 90 basis

points from prior year

•

Increased marketing, Costa and

Finint acquisition related expenses, 

investments in WU.com and

compliance costs

•

Partially offset by benefits from

revenue leverage, currency, and

restructuring savings

18

C2B Operating Margin

Operating margin improvement

Primarily due to the benefit of

lower debit processing expenses

related to Durbin

19

Business Solutions Operating Margin

Operating Loss

Operating loss of $15 million compared to an operating loss of $4

million in the prior year period

Includes $14 million of intangibles amortization in current quarter and

$4 million in the prior year period

Includes $6 million of integration expenses in the current quarter

20

Financial Strength

1Q 2012

Cash Flow from Operations*

$215 million

Capital Expenditures

$76 million

Stock Repurchases

$147 million

Dividends Paid

$62 million

Cash Balance, March 31, 2012

$1.4 billion

Debt Outstanding, March 31, 2012

$3.6 billion

*

Note:

Includes

the

impact

of

tax

payments

of

approximately

$65

million

relating

to

the

agreement with the U.S. Internal Revenue Service announced December 15, 2011

2012 Outlook

21

February 2012 Outlook Affirmed

Constant currency revenue growth in the range of 6% to 8%*, including 4%

benefit from a full year of TGBP

GAAP revenue growth 2% lower than constant currency

Operating margins expected to be similar to 2011

GAAP operating margin of approximately 25%

Operating margin excluding TGBP integration costs of approximately 26%*

EBITDA margin of approximately 30% excluding TGBP integration costs*

GAAP EPS in a range of $1.65 to $1.70, or $1.70 to $1.75 excluding TGBP

integration expense*

GAAP

cash

flows

from

operations

in

range

of

$1.0

billion

to

$1.1

billion,

or

$1.2

billion to $1.3 billion excluding estimated tax payments of approximately $200

million related to the IRS agreement*

*Note: See appendix for reconciliation of Non-GAAP to GAAP financial measures.

Questions & Answers

*

*

*

*

*

*

*

*

*

Appendix

First Quarter 2012 Earnings

Webcast & Conference Call

April 24, 2012

23

Non-GAAP Measures

24

Western Union's management believes the non-GAAP financial measures presented provide meaningful

supplemental information regarding our operating results to assist management, investors, analysts, and

others in understanding our financial results and to better analyze trends in our underlying business,

because they provide consistency and comparability to prior periods. These non-GAAP financial measures

include revenue change constant currency adjusted, pro forma revenue change TGBP adjusted, pro forma

revenue change TGBP and constant currency adjusted, operating income margin excluding restructuring

and TGBP integration expense, EBITDA margin excluding restructuring and TGBP integration expense,

earnings per share restructuring, IRS Agreement and TGBP integration expense adjusted, Consumer-to-

Consumer segment revenue change constant currency adjusted, Consumer-to-Consumer segment

principal per transaction change constant currency adjusted, Consumer-to-Consumer segment cross-

border principal change constant currency adjusted, Consumer-to-Business segment revenue change

constant

currency

adjusted,

Business

Solutions

segment

pro

forma

revenue

change

TGBP

adjusted,

Business Solutions segment pro forma revenue change TGBP and constant currency adjusted, 2012

revenue change outlook constant currency adjusted, 2012 operating income margin outlook TGBP

integration expense adjusted, 2012 EBITDA margin outlook TGBP integration expense adjusted, 2012

earnings per share outlook TGBP integration expense adjusted, and 2012 operating cash flow outlook IRS

Agreement adjusted.

A non-GAAP financial measure should not be considered in isolation or as a substitute for the most

comparable GAAP financial measure. A non-GAAP financial measure reflects an additional way of viewing

aspects of our operations that, when viewed with our GAAP results and the reconciliation to the

corresponding GAAP financial measure, provide a more complete understanding of our business. Users of

the financial statements are 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 non-GAAP financial measures to

the

most

directly

comparable

GAAP

financial

measures

is

included

below.

All adjusted year-over-year changes were calculated using prior year reported amounts, unless indicated

otherwise.  Amounts included below are in millions, unless indicated otherwise.

Reconciliation of Non-GAAP Measures

25

1Q11

2Q11

3Q11

4Q11

FY2011

1Q12

Consolidated Metrics

Revenues, as reported (GAAP)

1,283.0

$     

1,366.3

$     

1,410.8

$     

1,431.3

$     

5,491.4

$     

1,393.4

$ 

Foreign currency translation impact (a)

2.3

(32.5)

(18.2)

10.4

(38.0)

8.1

Revenues, constant currency adjusted

1,285.3

$     

1,333.8

$     

1,392.6

$     

1,441.7

$     

5,453.4

$     

1,401.5

$ 

Prior year revenues, as reported (GAAP)

1,232.7

$     

1,273.4

$     

1,329.6

$     

1,357.0

$     

5,192.7

$     

1,283.0

$ 

Pro forma prior year revenues, TGBP adjusted (b)

N/A

N/A

N/A

N/A

N/A

1,338.0

$ 

Revenue change, as reported (GAAP)

4

%

7

%

6

%

5

%

6

%

9

%

Revenue change, constant currency adjusted

4

%

5

%

5

%

6

%

5

%

9

%

Pro forma revenue change, TGBP adjusted

N/A

N/A

N/A

N/A

N/A

4

%

Pro forma revenue change, TGBP and constant currency adjusted

N/A

N/A

N/A

N/A

N/A

5

%

Operating income, as reported (GAAP)

312.9

$       

350.7

$       

363.0

$       

358.4

$       

1,385.0

$     

332.5

$    

Reversal of  restructuring and related expenses (c)

24.0

8.9

13.9

-

46.8

-

Reversal of  TGBP integration expense (d)

N/A

N/A

N/A

4.8

4.8

6.4

Operating income, excl. restructuring and TGBP integration expense

336.9

$       

359.6

$       

376.9

$       

363.2

$       

1,436.6

$     

338.9

$    

Operating income margin, as reported (GAAP)

24.4%

25.7%

25.7%

25.0%

25.2%

23.9%

Operating income margin, excl. restructuring

26.3%

26.3%

26.7%

25.0%

26.1%

23.9%

Operating income margin, excl. restructuring and TGBP integration expense

N/A

N/A

N/A

25.4%

26.2%

24.3%

Operating income, as reported (GAAP)

312.9

$       

350.7

$       

363.0

$       

358.4

$       

1,385.0

$     

332.5

$    

Reversal of  depreciation and amortization (e)

44.7

46.6

45.9

55.4

192.6

63.9

EBITDA (e)

357.6

$       

397.3

$       

408.9

$       

413.8

$       

1,577.6

$     

396.4

$    

Reversal of  restructuring and related expenses (c)

23.4

8.2

13.9

-

45.5

-

Reversal of  TGBP integration expense (d)

N/A

N/A

N/A

4.8

4.8

6.4

EBITDA, excl. restructuring and TGBP integration expense

381.0

$       

405.5

$       

422.8

$       

418.6

$       

1,627.9

$     

402.8

$    

EBITDA margin

27.9%

29.1%

29.0%

28.9%

28.7%

28.4%

EBITDA margin, excl. restructuring and TGBP integration expense

29.7%

29.7%

30.0%

29.2%

29.6%

28.9%

Net income, as reported (GAAP)

210.2

$       

263.2

$       

239.7

$       

452.3

$       

1,165.4

$     

247.3

$    

Reversal of  restructuring and related expenses, net of  income tax benefit (c)

16.4

5.9

9.7

-

32.0

-

Net income, restructuring adjusted

226.6

$       

269.1

$       

249.4

$       

452.3

$       

1,197.4

$     

247.3

$    

Reversal of  IRS Agreement tax provision benefit (f)

N/A

N/A

N/A

(204.7)

(204.7)

-

Net income, restructuring and IRS Agreement adjusted

226.6

$       

269.1

$       

249.4

$       

247.6

$       

992.7

$       

247.3

$    

Reversal

of

TGBP

integration

expense,

net

of

income

tax

benefit

(d)

N/A

N/A

N/A

3.1

3.1

4.3

Net income, restructuring, IRS Agreement and TGBP integration expense adjusted

226.6

$       

269.1

$       

249.4

$       

250.7

$       

995.8

$       

251.6

$    

Diluted

earnings

per

share

("EPS"),

as

reported

(GAAP)

($

-

dollars)

0.32

$         

0.41

$         

0.38

$         

0.73

$         

1.84

$         

0.40

$     

Impact

from

restructuring

and

related

expenses,

net

of

income

tax

benefit

(c)

($

-

dollars)

0.03

0.01

0.02

-

0.05

-

Diluted

EPS,

restructuring

adjusted

($

-

dollars)

0.35

$         

0.42

$         

0.40

$         

0.73

$         

1.89

$         

0.40

$     

Impact

from

IRS

Agreement

tax

provision

benefit

(f)

($

-

dollars)

N/A

N/A

N/A

(0.33)

(0.32)

-

Diluted

EPS,

restructuring

and

IRS

Agreement

adjusted

($

-

dollars)

0.35

$         

0.42

$         

0.40

$         

0.40

$         

1.57

$         

0.40

$     

Impact

from

TGBP

integration

expense,

net

of

income

tax

benefit

(d)

($

-

dollars)

N/A

N/A

N/A

-

-

-

Diluted

EPS,

restructuring,

IRS

Agreement

and

TGBP

integration

expense

adjusted

($

-

dollars)

0.35

$         

0.42

$         

0.40

$         

0.40

$         

1.57

$         

0.40

$     

Diluted weighted-average shares outstanding

652.1

635.8

627.1

621.7

634.2

621.9

Reconciliation of Non-GAAP Measures

26

1Q11

2Q11

3Q11

4Q11

FY2011

1Q12

Consumer-to-Consumer Segment

Revenues, as reported (GAAP)

1,078.1

$     

1,155.1

$     

1,193.3

$     

1,181.9

$     

4,608.4

$     

1,124.6

$ 

Foreign currency translation impact (a)

2.2

(31.4)

(17.9)

8.0

(39.1)

5.2

Revenues, constant currency adjusted

1,080.3

$     

1,123.7

$     

1,175.4

$     

1,189.9

$     

4,569.3

$     

1,129.8

$ 

Prior year revenues, as reported (GAAP)

1,030.2

$     

1,073.1

$     

1,128.3

$     

1,151.8

$     

4,383.4

$     

1,078.1

$ 

Revenue change, as reported (GAAP)

5

%

8

%

6

%

3

%

5

%

4

%

Revenue change, constant currency adjusted

5

%

5

%

4

%

3

%

4

%

5

%

Principal

per

transaction,

as

reported

($

-

dollars)

360

$          

365

$          

366

$          

349

$          

360

$          

346

$      

Foreign

currency

translation

impact

(a)

($

-

dollars)

(1)

(14)

(11)

2

(6)

3

Principal

per

transaction,

constant

currency

adjusted

($

-

dollars)

359

$          

351

$          

355

$          

351

$          

354

$          

349

$      

Prior

year

principal

per

transaction,

as

reported

($

-

dollars)

357

$          

351

$          

355

$          

356

$          

355

$          

360

$      

Principal per transaction change, as reported

1

%

4

%

3

%

(2)%

1

%

(4)%

Principal per transaction change, constant currency adjusted

1

%

0

%

0

%

(1)%

0

%

(3)%

Cross-border

principal,

as

reported

($

-

billions)

17.1

$         

18.6

$         

19.0

$         

18.5

$         

73.2

$         

17.5

$     

Foreign

currency

translation

impact

(a)

($

-

billions)

-

(0.8)

(0.6)

0.2

(1.2)

0.2

Cross-border

principal,

constant

currency

adjusted

($

-

billions)

17.1

$         

17.8

$         

18.4

$         

18.7

$         

72.0

$         

17.7

$     

Prior

year

cross-border

principal,

as

reported

($

-

billions)

16.1

$         

16.8

$         

17.6

$         

18.1

$         

68.6

$         

17.1

$     

Cross-border principal change, as reported

7

%

10

%

8

%

2

%

7

%

2

%

Cross-border principal change, constant currency adjusted

6

%

6

%

5

%

3

%

5

%

3

%

Consumer-to-Business Segment

Revenues, as reported (GAAP)

153.2

$       

153.5

$       

155.3

$       

153.9

$       

615.9

$       

155.1

$    

Foreign currency translation impact (a)

1.3

1.1

1.5

2.5

6.4

2.9

Revenues, constant currency adjusted

154.5

$       

154.6

$       

156.8

$       

156.4

$       

622.3

$       

158.0

$    

Prior year revenues, as reported (GAAP)

N/A

N/A

N/A

N/A

610.7

$       

153.2

$    

Revenue change, as reported (GAAP)

(2)%

2

%

2

%

2

%

1

%

1

%

Revenue change, constant currency adjusted

(1)%

2

%

3

%

3

%

2

%

3

%

Business Solutions Segment

Revenues, as reported (GAAP)

27.9

$         

31.4

$         

33.6

$         

68.2

$         

161.1

$       

86.9

$     

Foreign currency translation impact (a)

(1.3)

(2.2)

(2.1)

(0.1)

(5.7)

(0.1)

Revenues, constant currency adjusted

26.6

$         

29.2

$         

31.5

$         

68.1

$         

155.4

$       

86.8

$     

Prior year revenues, as reported (GAAP)

N/A

N/A

N/A

N/A

106.7

$       

27.9

$     

Pro forma prior year revenues, TGBP adjusted (b)

N/A

N/A

N/A

N/A

N/A

82.9

$     

Revenue change, as reported (GAAP)

13

%

15

%

31

%

***

***

***

Revenue change, constant currency adjusted

8

%

7

%

22

%

***

***

***

Pro forma revenue change, TGBP adjusted

N/A

N/A

N/A

N/A

N/A

5

%

Pro forma revenue change, TGBP and constant currency adjusted

N/A

N/A

N/A

N/A

N/A

4

%

*** Calculation of growth percentage is not meaningful due to the impact of the TGBP acquisition in November 2011.

Reconciliation of Non-GAAP Measures

27

2012 Outlook Metrics

Revenue change (GAAP)

4

%

6

%

Foreign currency translation impact (g)

2

%

2

%

Revenue change, constant currency adjusted

6

%

8

%

Operating income margin (GAAP)

25

%

TGBP integration expense impact (d)

1

%

Operating income margin, TGBP integration expense adjusted

26

%

Operating income margin (GAAP)

25

%

Depreciation and amortization impact (e)

4

%

TGBP integration expense impact (d)

1

%

EBITDA margin, TGBP integration expense adjusted

30

%

EPS guidance (GAAP) 

1.65

$         

1.70

$         

TGBP

integration

expense

impact,

net

of

tax

benefit

(d)

0.05

0.05

EPS guidance, TGBP integration expense adjusted

1.70

$         

1.75

$         

Operating cash flow (GAAP)

1.0

$           

1.1

$           

Payments on IRS Agreement (f)

0.2

0.2

Operating cash flow, IRS Agreement adjusted  ($ -

1.2

$           

1.3

$           

Range

Range

Range

billions)

($ -

dollars)

($ -

dollars)

($ -

dollars)

($ -

billions)

($ -

billions)

Footnote explanations

28

Non-GAAP related notes:

(a)

(b)

(c)

(d)

(e)

(f)

(g)

Represents the estimated impact from the fluctuation in exchange rates between all foreign currency denominated amounts and the United States dollar. Constant currency results exclude any estimated

benefit or loss caused by foreign exchange fluctuations between foreign currencies and the United States dollar, net of foreign currency hedges, which would not have occurred if there had been a constant

exchange rate. 

Represents the impact from the tax benefit in December 2011 due to the agreement with the IRS resolving substantially all issues related to the restructuring of our international operations in 2003 of $204.7

million.  Additionally, represents the impact of the anticipated tax payments of approximately $190 million related to the agreement with the IRS discussed above.

TGBP integration expense consists primarily of severance and other benefits, retention, direct and incremental expense consisting of facility relocation, consolidation and closures; IT systems integration; and

other expenses such as training, travel and professional fees. Integration expense does not include costs related to the completion of the TGBP acquisition.

Represents the impact from the fluctuation in exchange rates between all foreign currency denominated amounts and the United States dollar. Constant currency results exclude any benefit or loss caused

by foreign exchange fluctuations between foreign currencies and the United States dollar, net of foreign currency hedges, which would not have occurred if there had been a constant exchange rate.  In pro

forma calculations, also includes the currency impact of $0.3 million for the three months ended March 31, 2012 associated with the acquisition of Travelex Global Business Payments ("TGBP"). 

Represents the pro forma incremental impact of TGBP on Consolidated and Business Solutions segment revenues.  Pro forma revenues presents the results of operations of the Company and its Business

Solutions segment as they may have appeared had the acquisition of TGBP occurred as of January 1, 2011.  The pro forma information is provided for illustrative purposes only and does not purport to

present what the actual results of operations would have been had the acquisition actually occurred on the date indicated.  The results of operations for TGBP have been included in Consolidated and

Business Solutions segment revenues from November 7, 2011, the date of acquisition.

Restructuring and related expenses consist of direct and incremental expenses including the impact from fluctuations in exchange rates associated with restructuring and related activities, consisting of

severance, outplacement and other related benefits; facility closure and migration of the Company's IT infrastructure; and other expenses related to the relocation of various operations to new or existing

Company facilities and third-party providers, including hiring, training, relocation, travel, and professional fees. Also included in the facility closure expenses are non-cash expenses related to fixed asset and

leasehold improvement write-offs and the acceleration of depreciation and amortization. Restructuring and related expenses were not allocated to the segments.           

Earnings before Interest, Taxes, Depreciation and Amortization (EBITDA) results from taking operating income and adjusting for depreciation and amortization expenses.