![]() 2012 Second Quarter Results July 24, 2012 Exhibit 99.2 © 2012 Total System Services, Inc. ® All rights reserved worldwide. |
![]() 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 as 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 be found in TSYS’ 2011 Annual Report on Form 10-K, Quarterly Reports on 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. 2 ©2012 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 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. 3 ©2012 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 6 ©2012 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) 2 Qtr 2012 2 Qtr 2011 Percent Change nd nd |
![]() 2012 YTD Revenue Change Revenues Before Reimbursable Items 7 ©2012 Total System Services, Inc.® Proprietary. All rights reserved worldwide. 10% 15% 5% 0% 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 8 ©2012 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 9 ©2012 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 10 ©2012 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 11 ©2012 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 $0 $75 $150 $225 $300 $375 $450 $525 $600 (in millions) 12 TTM = Trailing Twelve Months ©2012 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. ® Proprietary. All rights reserved worldwide. 13 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) 15 6/30/12 6/30/11 6/30/12 6/30/11 Three Months Ended Twelve Months Ended ©2012 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) 16 Three Months Ended Three Months Ended Three Months Ended 6/30/12 6/30/11 6/30/11 6/30/12 6/30/12 6/30/11 $ 64,068 $ 10,122 $ 25,708 Appendix Non-GAAP Reconciliation – Segment Operating Margin Excluding Reimbursable Items ©2012 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% 17 Percentage Change Percentage Change Months Ended 6/30/12 6/30/11 Three 6/30/12 6/30/11 Months Ended Six ©2012 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) 18 Months Ended 6/30/2012 ©2012 Total System Services, Inc.® Proprietary. All rights reserved worldwide. |
![]() Appendix Non-GAAP Reconciliation – Free Cash Flow (in thousands) 19 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 ©2012 Total System Services, Inc.® Proprietary. All rights reserved worldwide. Months Ended Trailing Twelve |