Total System Services 8K Results of Operations and Financial Condition | TSS 23 Oct 12

2012 Third Quarter Results

October 23, 2012

Exhibit 99.2

2012

Total

System

Services,

Inc.®

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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

found

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.

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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.

Phil Tomlinson

Chairman and Chief Executive Officer

Jim Lipham

Chief Financial Officer

Total

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Consolidated Selected Financial Highlights

$ 468,059

$ 459,747

1.8%

Total Revenues

$ 1,391,872

$ 1,336,732

4.1%

406,052

390,162

4.1

Revenues Before Reimbursable Items

1,199,922

1,133,015

5.9

90,893

81,180

12.0

Operating Income

267,821

232,738

15.1

60,312

58,148

3.7

Net Income Attributable to TSYS

Common Shareholders

183,418

160,684

14.1

2,451.8

2,220.7

10.4

Total Cardholder Transactions (in millions)

7,108.2

6,297.7

12.9

$0.32

$0.30

5.7

Earnings Per Share

Attributable to TSYS Common

Shareholders

$0.97

$0.83

16.6

YTD

2012

YTD

2011

Percent

Change

(in thousands, except per share data)

Qtr

2012

Qtr

2011

Percent

Change

Total

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Inc.®

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2012 YTD Revenue Change

Revenues Before Reimbursable Items

5.8%

Internal

Growth

New

Clients

3.1%

Acquisitions

(3.9%)

Reported

5.9%

Currency

(0.5%)

1.4%

Lost Business,

Non-recurring

Items and

Price

Compression

10%

15%

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Consumer Credit

195.0

194.2

0.4

195.0

199.4

(2.2

)

Government

Services

48.8

32.6

49.7

48.8

30.8

58.3

Retail

24.1

23.2

4.1

24.1

25.2

(4.1

)

Total Consumer

267.9

250.0

7.2

267.9

255.4

4.9

Commercial

36.3

33.4

8.7

36.3

36.1

0.4

Other

11.1

7.0

58.0

11.1

9.6

16.0

Subtotal

315.3

290.4

8.6

315.3

301.1

4.7

Prepaid /

Stored Value

114.3

75.8

50.7

114.3

105.4

8.5

Commercial Card

Single Use

36.8

26.2

40.6

36.8

34.0

8.3

Total AOF

466.4

392.4

18.9

466.4

440.5

5.9

Consolidated Accounts on File Portfolio Summary

(in millions)

Sep

2012

Sep

2011

Change

Sep

2012

Jun

2012

Change

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Key Drivers

3Q 2012 Year Over Year

Segment Financial Highlights

•

Strong internal growth

•

Increased volumes

•

Pricing concessions

North America

Services

•

Total accounts on file were 413.4 million, an

increase of 20.9%

•

Excluding prepaid and single use, accounts on

file were 264.1 million, an increase of 9.7%

•

Total cardholder transactions were 2,036.6

million, an increase of 9.5%

Volumes

Revenues

$237.6 million

Decrease of 2.6%

Excluding Reimbursables

$203.5 million

Decrease of 1.3%

Operating Income

$69.6 million

Increase of 2.3%

Operating Margin

29.3%

Excluding Reimbursables

34.2%

Same Client Transactions

2,010.7 million

Increase of 9.9%

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3Q 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

Key Drivers

International

Services

Volumes

•

Accounts on file were 53.0 million, an increase

of 4.9%

•

Total cardholder transactions were 415.1

million, an increase of 15.1%

Revenues

$102.7 million

Increase of 2.8%

Constant currency basis

$105.3 million

Excluding Reimbursables

Increase of 2.1%

Operating Income

$7.7 million

Decrease of 6.7%

Operating Margin

7.5%

Excluding Reimbursables

7.9%

Same Client Transactions

390.7

million

Increase of 11.4%

$98.2

million

Total

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Merchant

Services

•

Upward trends in transaction volumes

•

Strong dollar volume growth in direct acquiring

•

Acquisition of Central Payment

Key Drivers

Volumes

•

Point-of-Sale Transactions were 1,225.1

million, a decrease of 3.0%

•

Excluding deconverted clients, Point-of-Sale

Transactions increased 9.5%

3Q 2012 Year Over Year

Segment Financial Highlights

Revenues

$132.7 million

Increase of 8.0%

Excluding Reimbursables

$107.8 million

Increase of 15.6%

Operating Income

$34.5 million

Increase of 26.0%

Operating Margin

26.0%

Excluding Reimbursables

32.0%

Total

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Cash Flow Strength:

2012 TTM Consolidated Financial Highlights

$529

$473

$356

$249

$357

$75

$150

$225

$300

$375

$450

$525

$600

EBITDA

Cash flow from operations

Free cash flow

Net income

Ending cash

(in millions)

TTM = Trailing Twelve Months

Total

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Deployment of Capital 2010-2012YTD

(in millions)

$251

$389

$186

Total

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Closing Share Price

$ 23.70

$ 19.56

$4.14

$ 23.70

$ 16.93

$6.77

Dividends

$0.30

$0.40

Total return

$4.44

$7.17

Shareholder return

22.70%

42.35%

Shareholder Return

Sep 30,

2012

Dec 31,

2011

Sep 30,

2012

Sep 30,

2011

Shareholder

Return

Shareholder

Return

Nine Months

Trailing

Twelve Months

Appendix

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Appendix Non-GAAP Reconciliation –

Revenues Before Reimbursable Items

(in thousands)

9/30/12

9/30/11

9/30/12

9/30/11

Three Months Ended

Twelve Months Ended

Total Revenues

$ 468,059

$ 459,747

$ 1,391,872

$ 1,336,732

Reimbursable Items

62,007

69,585

191,950

203,717

Revenues

Before Reimbursable Items

$ 406,052

$ 390,162

$ 1,199,922

$ 1,133,015

Three Months Ended

9/30/12 9/30/11

Three Months Ended

9/30/12 9/30/11

Three Months Ended

9/30/12 9/30/11

Operating Income (a)

$ 69,561 $ 68,016

$ 7,725

$ 8,279

$ 34,508 $ 27,398

Total Revenues (b)

237,625

243,899

102,691

99,891

132,746

122,933

Reimbursable Items

34,128

37,812

4,507

3,752

24,960

29,713

Revenues Before

Reimbursable Items(c)

203,497

206,087

98,184

96,139

107,786

93,220

Operating Margin (a)/(b)

29.27%

27.89%

7.52%

8.29%

26.00%

22.29%

Operating Margin Excluding Reimbursables (a)/(c)

34.18%

33.00%

7.87%

8.61%

32.02%

29.39%

Appendix Non-GAAP Reconciliation –

Segment

Operating Margin Excluding Reimbursable Items

North America

International

Merchant

(in thousands)

Total

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Nine

Months Ended

9/30/12 9/30/11

Percentage

Change

Three

Months Ended

9/30/12 9/30/11

Percentage

Change

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)

$ 470,470

$ 459,747

2.3%

$1,397,952

$ 1,336,732

4.6%

Foreign Currency (2)

(2,411)

---

(6,080)

---

Total Revenues

$468,059

$459,747

1.8%

$1,391,872

$1,336,732

4.1%

International Services:

Constant Currency (1)

$ 105,290

$ 99,891

5.4%

$ 313,007

$ 288,271

8.6%

Foreign Currency (2)

(2,599)

---

(6,541)

---

Total Revenues

$102,691

$99,891

2.8%

$306,466

$288,271

6.3%

Total

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Appendix Non-GAAP Reconciliation –

EBITDA

Trailing Twelve

Months Ended

9/30/2012

(in thousands)

Net Income

$ 248,580

Adjusted for:

Deduct: Equity in Income of Equity Investments

(8,216)

Add: Income Taxes

113,831

Add: Nonoperating expense

3,344

Add: Depreciation and Amortization

171,091

EBITDA

$ 528,630

Appendix Non-GAAP Reconciliation –

Free Cash

Flow

Trailing Twelve

Months Ended

9/30/2012

Cash Flows from Operating Activities

$ 472,641

Less:

Purchase of Property and Equipment

(33,113)

Additions to Licensed Computer Software from Vendors

(28,854)

Additions to Internally Developed Computer Software

(19,753)

Additions to Contract Acquisition Costs

(34,817)

Free Cash Flow

$ 356,104

(in thousands)

Total

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Total System Services (TSS) Inactive 8-KResults of Operations and Financial Condition