EX-99.2 3 d427322dex992.htm EX-99.2 EX-99.2
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.