Total System Services 8K TSYS Reports EPS Growth of 26.5% for the Second Quarter | TSS 24 Jul 12

2012 Second Quarter Results

July 24, 2012

Exhibit 99.2

2012 Total System Services, Inc.

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

such

the

words

“believe,”

“expect,”

“anticipate,”

“intend,”

“plan,”

“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

found

TSYS’

2011

Annual

Report

Form

10-K,

Quarterly

Reports

Form

10-Q

and

Current

Reports

on Form 8-K. TSYS does not assume any obligation to update any

forward-looking statements as a result of new information, future

developments or otherwise.

Total

System

Services,

Inc.®

Proprietary.

All

rights

reserved worldwide.

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: revenues before reimbursable items; operating

margin excluding reimbursable items; revenues measured on a

constant currency basis; free cash flow; and EBITDA. The most

comparable GAAP measures to these measures are revenues;

operating margin; revenues; cash flows from operating activities; and

net income, respectively. Management uses these non-GAAP financial

measures

assess

the

performance

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.

Phil Tomlinson

Chairman and Chief Executive Officer

Chief Financial Officer

Jim Lipham

Consolidated Selected Financial Highlights

Total

System

Services,

Inc.®

Proprietary.

All

rights

reserved worldwide.

$ 462,651

$ 447,554

3.4%

Total Revenues

$ 923,813

$ 876,985

5.3%

398,692

380,210

4.9

Revenues Before Reimbursable Items

793,870

742,854

6.9

92,096

78,529

17.3

Operating Income

176,927

151,557

16.7

66,710

53,747

24.1

Net Income Attributable to TSYS

Common Shareholders

123,106

102,537

20.1

2,440.2

2,135.7

14.3

Total Cardholder Transactions (in millions)

4,716.3

4,088.5

15.4

$0.35

$0.28

26.5

Earnings Per Share

Attributable to TSYS Common

Shareholders

$0.65

$0.53

22.7

YTD

2012

YTD

2011

Percent

Change

(in thousands, except per share data)

Qtr

2012

Qtr

2011

Percent

Change

2012 YTD Revenue Change

Revenues Before Reimbursable Items

Total

System

Services,

Inc.®

Proprietary.

All

rights

reserved worldwide.

10%

15%

6.4%

Internal

Growth

New

Clients

3.7%

Acquisitions

(3.7%)

Reported

6.9%

Currency

(0.5%)

1.0%

Lost

Business,

Non-recurring

Items and

Price

Compression

Consumer Credit

199.4

187.6

6.3

199.4

197.2

1.1

Government

Services

30.8

30.0

2.8

30.8

30.5

1.0

Retail

25.2

23.7

6.0

25.2

25.3

(0.5

)

Total Consumer

255.4

241.3

5.8

255.4

253.0

0.9

Commercial

36.1

32.7

10.4

36.1

35.5

1.7

Other

9.6

6.7

42.9

9.6

9.4

1.6

Subtotal

301.1

280.7

7.2

301.1

297.9

1.0

Prepaid /

Stored Value

105.4

72.8

44.6

105.4

88.5

19.1

Commercial Card

Single Use

34.0

22.5

51.2

34.0

29.5

15.4

Total AOF

440.5

376.0

17.1

440.5

415.9

5.9

Consolidated Accounts on

File Portfolio Summary

(in millions)

Jun

2012

Jun

2011

Change

Jun

2012

Mar

2012

Change

Total

System

Services,

Inc.®

Proprietary.

All

rights

reserved worldwide.

Key Drivers

2Q 2012 Year Over Year

Segment Financial Highlights

•

Strong internal growth

•

Increased volumes

North America

Services

Total

System

Services,

Inc.®

Proprietary.

All

rights

reserved worldwide.

•

Accounts on file were 387.3 million, an increase

of 18.0%

•

Total cardholder transactions were 2,037.9

million, an increase of 13.5%

Volumes

Revenues

$239.6 million

Increase of 2.4%

Excluding Reimbursables

$205.6 million

Increase of 3.4%

Operating Income

$72.1 million

Increase of 12.5%

Operating Margin

30.1%

Excluding Reimbursables

35.1%

Same Client Transactions

2,010.0 million

Increase of 13.1%

2Q 2012 Year Over Year

Segment Financial Highlights

•

Strong internal growth

•

Deconversion fee

•

Conversion of new clients

•

Dedication of more internal resources,

previously shared between our North America

and International segments

Total

System

Services,

Inc.®

Proprietary.

All

rights

reserved worldwide.

Key Drivers

International

Services

Volumes

•

Accounts on file were 53.1 million, an

increase of 11.1%

•

Total cardholder transactions were 402.3

million, an increase of 18.1%

Revenues

$103.4 million

Increase of 5.9%

Constant currency basis

$106.2 million

Excluding Reimbursables

$99.0 million

Increase of 5.6%

Operating Income

$9.4 million

Decrease of 6.8%

Operating Margin

9.1%

Excluding Reimbursables

9.5%

Same Client Transactions

374.8 million

Increase of 11.0%

Merchant

Services

2Q 2012 Year Over Year

Segment Financial Highlights

•

Upward trends in transaction volumes

•

Strong dollar volume growth in direct acquiring

Total

System

Services,

Inc.®

Proprietary.

All

rights

reserved worldwide.

Key Drivers

Volumes

•

Point-of-Sale Transactions were 1,279.7

million, an increase of 0.8%

•

Excluding deconverted clients, Point-of-Sale

Transactions increased 12.4%

Revenues

$124.9 million

Increase of 1.5%

Excluding Reimbursables

$97.7 million

Increase of 5.0%

Operating Income

$33.0 million

Increase of 28.2%

Operating Margin

26.4%

Excluding Reimbursables

33.7%

Cash Flow Strength:

2012 TTM Consolidated Financial Highlights

$518

$440

$330

$244

$419

$75

$150

$225

$300

$375

$450

$525

$600

(in millions)

TTM = Trailing Twelve Months

Total

System

Services,

Inc.®

Proprietary.

All

rights

reserved worldwide.

Closing Share Price

$ 23.93

$ 19.56

$4.37

$ 23.93

$ 18.58

$5.35

Dividends

$0.20

$0.37

Total return

$4.57

$5.72

Shareholder return

23.4%

30.8%

Shareholder Return

2012 Total System Services, Inc.

Jun 30,

2012

Dec 31,

2011

Jun 30,

2012

Jun 30,

2011

Shareholder

Return

Shareholder

Return

Six Months

Trailing

Twelve Months

Appendix

Total Revenues

$ 462,651

$ 447,554

$ 923,813 $ 876,985

Reimbursable Items

63,959

67,344

129,943

134,131

Revenues Before Reimbursable Items

$ 398,692

$ 380,210

$ 793,870

$ 742,854

Appendix Non-GAAP Reconciliation –

Revenues Before Reimbursable Items

(in thousands)

6/30/12

6/30/11

6/30/12

6/30/11

Three Months Ended

Twelve Months Ended

Total

System

Services,

Inc.®

Proprietary.

All

rights

reserved worldwide.

Operating Income (a)

$ 72,060

$ 9,438

$ 32,950

Total Revenues (b)

239,557

233,903

103,415

97,670

124,903

123,084

Reimbursable Items

33,992

35,128

4,368

3,892

27,202

30,043

Revenues Before

Reimbursable Items(c)

205,565

198,775

99,047

93,778

97,701

93,041

Operating Margin (a)/(b)

30.08%

27.39%

9.13%

10.36%

26.38%

20.89%

Operating Margin Excluding Reimbursables (a)/(c)

35.05%

32.23%

9.53%

10.79%

33.73%

27.63%

North America

International

Merchant

(in thousands)

Three Months Ended

6/30/12

6/30/11

6/30/12

6/30/11

$ 64,068

$ 10,122

$ 25,708

Appendix

Non-GAAP

Reconciliation

–

Segment

Operating Margin Excluding Reimbursable Items

Total

System

Services,

Inc.®

Proprietary.

All

rights

reserved worldwide.

Appendix Non-GAAP Reconciliation –

Constant Currency

(1) Reflects current period results on a non-GAAP basis as if foreign currency rates did not change from the comparable prior year period.

(2) Reflects the impact of calculated changes in foreign currency rates from the comparable period.

(in thousands)

Consolidated:

Constant Currency (1)

$ 465,231

$ 447,554

3.9%

$ 927,482

$ 876,985

5.8%

Foreign Currency (2)

(2,580)

---

(3,669)

---

Total Revenues

462,651

447,554

3.4%

923,813

876,985

5.3%

International Services:

Constant Currency (1)

$ 106,186

$ 97,670

8.7%

$ 207,717

$188,380

10.3%

Foreign Currency (2)

(2,771)

---

(3,942)

---

Total Revenues

$103,415

$97,670

5.9%

$203,775

$188,380

8.2%

Percentage

Change

Percentage

Change

Months Ended

6/30/12 6/30/11

Three

6/30/12 6/30/11

Months Ended

Six

Total

System

Services,

Inc.®

Proprietary.

All

rights

reserved worldwide.

Trailing Twelve

Appendix Non-GAAP Reconciliation –

EBITDA

Net Income

$ 244,225

Adjusted for:

Deduct: Equity in Income of Equity Investments

(10,849)

Add: Income Taxes

107,890

Add: Nonoperating expense

6,560

Add: Depreciation and Amortization

170,216

EBITDA

$ 518,042

(in thousands)

Months Ended

6/30/2012

Total

System

Services,

Inc.®

Proprietary.

All

rights

reserved worldwide.

Appendix

Non-GAAP

Reconciliation

–

Free

Cash

Flow

(in thousands)

Cash Flows from Operating Activities

$ 440,429

Less:

Purchase of Property and Equipment

(28,205)

Additions to Licensed Computer Software from Vendors

(30,898)

Additions to Internally Developed Computer Software

(18,761)

Additions to Contract Acquisition Costs

(32,356)

Free Cash Flow

$ 330,209

6/30/2012

Total

System

Services,

Inc.®

Proprietary.

All

rights

reserved worldwide.

Months Ended

Trailing Twelve

Total System Services (TSS) Inactive 8-KTSYS Reports EPS Growth of 26.5% for the Second Quarter