![]() 2012 Third Quarter Results October 23, 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. |
![]() ©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 |
![]() Phil Tomlinson Chairman and Chief Executive Officer |
![]() Jim Lipham Chief Financial Officer |
![]() ©2012 Total System Services, Inc.® Proprietary. All rights reserved worldwide. Consolidated Selected Financial Highlights 6 $ 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) 3 rd Qtr 2012 3 rd Qtr 2011 Percent Change |
![]() ©2012 Total System Services, Inc.® Proprietary. All rights reserved worldwide. 2012 YTD Revenue Change Revenues Before Reimbursable Items 7 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% 5% 0% |
![]() ©2012 Total System Services, Inc.® Proprietary. All rights reserved worldwide. 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 8 |
![]() ©2012 Total System Services, Inc.® Proprietary. All rights reserved worldwide. Key Drivers 3Q 2012 Year Over Year Segment Financial Highlights • Strong internal growth • Increased volumes • Pricing concessions North America Services 9 • 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% |
![]() ©2012 Total System Services, Inc.® Proprietary. All rights reserved worldwide. 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 10 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 |
![]() ©2012 Total System Services, Inc.® Proprietary. All rights reserved worldwide. Merchant Services • Upward trends in transaction volumes • Strong dollar volume growth in direct acquiring • Acquisition of Central Payment 11 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% |
![]() ©2012 Total System Services, Inc.® Proprietary. All rights reserved worldwide. Cash Flow Strength: 2012 TTM Consolidated Financial Highlights $529 $473 $356 $249 $357 $0 $75 $150 $225 $300 $375 $450 $525 $600 EBITDA Cash flow from operations Free cash flow Net income Ending cash (in millions) 12 TTM = Trailing Twelve Months |
![]() ©2012 Total System Services, Inc.® Proprietary. All rights reserved worldwide. Deployment of Capital 2010-2012YTD (in millions) 13 $251 $389 $186 |
![]() ©2012 Total System Services, Inc.® Proprietary. All rights reserved worldwide. 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 14 Sep 30, 2012 Dec 31, 2011 Sep 30, 2012 Sep 30, 2011 Shareholder Return Shareholder Return Nine Months Trailing Twelve Months |
![]() Appendix |
![]() ©2012 Total System Services, Inc.® Proprietary. All rights reserved worldwide. Appendix Non-GAAP Reconciliation – Revenues Before Reimbursable Items (in thousands) 16 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) 17 ©2012 Total System Services, Inc.® Proprietary. All rights reserved worldwide. |
![]() ©2012 Total System Services, Inc.® Proprietary. All rights reserved worldwide. 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% 18 |
![]() ©2012 Total System Services, Inc.® Proprietary. All rights reserved worldwide. Appendix Non-GAAP Reconciliation – EBITDA Trailing Twelve Months Ended 9/30/2012 (in thousands) 19 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) 20 ©2012 Total System Services, Inc.® Proprietary. All rights reserved worldwide. |