8-K

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

Form 8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d) of

the Securities Exchange Act of 1934

July 23, 2013

Date of Report (Date of Earliest Event Reported)

Total System Services, Inc.

(Exact Name of Registrant as Specified in its Charter)

Georgia	1-10254	58-1493818
(State of Incorporation)	(Commission File Number)	(IRS Employer Identification No.)

One TSYS Way, Columbus, Georgia 31901

(Address of principal executive offices) (Zip Code)

(706) 649-2310

(Registrant’s telephone number, including area code)

(Former name or former address, if changed since last report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

¨ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

¨ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

¨ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

¨ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Item 2.02 Results of Operations and Financial Condition.

On July 23, 2013, Total System Services, Inc. (“Registrant”) issued a press release announcing financial results for the second quarter ended June 30, 2013. The press release is attached hereto as Exhibit 99.1 and incorporated herein by reference. The information in the press release shall not be deemed to be filed for purposes of Section 18 of the Securities Exchange Act of 1934 or incorporated by reference into any document filed under the Securities Act of 1933 or the Securities Exchange Act of 1934 except as shall be expressly set forth by specific reference in such filing.

Item 7.01 Regulation FD Disclosure.

On July 23, 2013, Registrant will hold an investor conference call and webcast to discuss its financial results for the second quarter ended June 30, 2013. A copy of the presentation to be used during the conference call is attached hereto as Exhibit 99.2 and incorporated herein by reference. The information in the presentation shall not be deemed to be filed for purposes of Section 18 of the Securities Exchange Act of 1934 or incorporated by reference into any document filed under the Securities Act of 1933 or the Securities Exchange Act of 1934 except as shall be expressly set forth by specific reference in such filing.

Item 9.01 Financial Statements and Exhibits.

(d)    Exhibits
Exhibit No.	Description
99.1	Registrant’s press release dated July 23, 2013
99.2	Registrant’s presentation dated July 23, 2013

2

Signature

Pursuant to the requirements of the Securities Exchange Act of 1934, as amended, Registrant has caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

	TOTAL SYSTEM SERVICES, INC. (“Registrant”)
Dated: July 23, 2013	By:	/s/ Kathleen Moates
		Kathleen Moates
		Senior Deputy General Counsel

3

EX-99.1

Exhibit 99.1

Total System Services, Inc. One TSYS Way P.O. Box 2567 Columbus, GA 31902-2567 +1.706.649.2307
+1.706.649.5740 www.tsys.com

For immediate release:

Contacts:

Shawn Roberts

TSYS Investor Relations

+1.706.644.6081

shawnroberts@tsys.com

TSYS Reports Second Quarter Results and Raises 2013 Guidance with NetSpend Acquisition

COLUMBUS, Ga., July 23, 2013 — TSYS (NYSE: TSS) today reported results for the second quarter of 2013 and raised its 2013 guidance to include the acquisition of NetSpend Holdings, Inc. (NetSpend), which closed on July 1, 2013. TSYS’ results for the second quarter and year-to-date do not include the results for NetSpend for such periods.

For the second quarter, total revenues were $478.4 million, an increase of 3.4% as compared to 2012. Total revenues were impacted by a decrease of $3.0 million in reimbursable items for the quarter, as well as an unfavorable currency translation of $6.4 million. Revenues before reimbursable items for the quarter were $417.5 million, an increase of 4.7% over 2012, or 6.3% on a constant currency basis. Revenues before reimbursable items were impacted by an unfavorable currency translation of $6.2 million. TSYS’ operating income, excluding merger and acquisition expenses associated with NetSpend, was $96.6 million, an increase of 4.9% over 2012. On a GAAP basis, operating income was $95.3 million, an increase of 3.5% over 2012. Basic earnings per share (EPS), excluding expenses incurred in connection with the acquisition of NetSpend, was $0.34, a decrease of 4.3% over 2012. Basic EPS on a GAAP basis was $0.31, a decrease of 12.9% over 2012. Diluted EPS on a GAAP basis was $0.31, a decrease of 12.4% over 2012.

On a year-to-date basis, total revenues were $943.4 million, an increase of 2.1% as compared to 2012. Total revenues were impacted by a decrease of $8.3 million in reimbursable items, as well as an unfavorable currency translation of $10.4 million. Revenues before reimbursable items were $821.7 million, an increase of 3.5% over 2012 or 4.8% on a constant currency basis. Revenues before reimbursable items were impacted by an unfavorable currency translation of $10.2 million. TSYS’ operating income, excluding merger and acquisition expenses associated with NetSpend, was $174.9 million, a decrease of 1.1% over 2012. On a GAAP basis, operating income was $170.2 million, a decrease of 3.8% over 2012. Basic EPS, excluding expenses incurred in connection with the acquisition of NetSpend, was $0.67, an increase of 2.9% over 2012. Basic EPS on a GAAP basis was $0.61, a decrease of 6.0% over 2012. Diluted EPS on a GAAP basis was $0.61, a decrease of 5.9% over 2012.

2013

TSYS Reports Second Quarter Results/p. 2

“Our financial results for the first six months met our expectations excluding currency translation adjustments and merger and acquisition expenses. The acquisition of NetSpend is a transformational event for us. NetSpend’s revenue has grown at a 22% CAGR over the past five years. The next two years will be very exciting as we work on the integration of NetSpend. We also plan on growing the prepaid program management business and converting the largest pipeline of accounts in our history over the next two years,” said Philip W. Tomlinson, chairman of the board and chief executive officer, TSYS.

“NetSpend is the second largest provider of general purpose reloadable (GPR) and Paycards in the U.S. With the NetSpend acquisition, TSYS gains entry into one of the fastest growing areas of payments which is expected to double over the next 4–5 years. The acquisition complements our already strong presence in the prepaid processing space,” said Tomlinson.

“There are an estimated 68 million U.S. consumers who are underserved. Only 17% of these consumers have ever used a GPR card, and NetSpend serves less than 5% of the overall market today. NetSpend has a leadership team with deep prepaid experience and a differentiated product offering customized for the consumers it serves. The opportunity to capture greater market share is within our reach. NetSpend’s mission is to empower consumers with the convenience, security and freedom to be self-banked, which aligns with TSYS’ brand promise to improve people’s lives and businesses by putting people at the center of payments,” said Tomlinson.

With the acquisition of NetSpend, TSYS is providing guidance on adjusted cash earnings per share and adjusted EBITDA as these metrics will provide a more meaningful measure of the company’s financial performance given the increased borrowing of $1.4 billion and the increase in amortization expense for acquisition intangibles. Beginning in the third quarter, NetSpend will be reported as TSYS’ fourth operating segment.

The new guidance ranges for 2013 as compared to 2012 include:

	2013 Revised Guidance*
	Range (in millions, except  per share amounts)		Range Percent Change
Total revenues	$	2,137 to $2,180		14% to 17%
Revenues before reimbursable items	$	1,898 to $1,936		17% to 20%
Adjusted EBITDA**	$	639 to    $652		17% to 19%
Adjusted cash EPS***	$	1.69 to   $1.72		16% to 18%

* The guidance includes NetSpend’s operating results for six months of 2013, excludes one-time expenses incurred in connection with the NetSpend acquisition of $16.0 million, assumes approximately $33.5 million ($67 million on an annual basis) of acquisition intangible amortization associated with the NetSpend acquisition, no significant movement in foreign exchange rates, and assumes minimal synergies for 2013.

** Adjusted EBITDA is net income excluding equity in income of equity investments, nonoperating income/(expense), taxes, depreciation, amortization and stock-based compensation expenses and other non-recurring items.

*** Adjusted cash EPS is adjusted cash earnings divided by weighted average shares outstanding used for basic EPS calculations. Adjusted cash earnings is net income excluding the after-tax impact of stock-based compensation expenses, amortization of acquisition intangibles and other non-recurring items.

2013

TSYS Reports Second Quarter Results/p. 3

Conference Call

TSYS will host its quarterly conference call at 5:00 p.m. ET on Tuesday, July 23. The conference call can be accessed via simultaneous Internet broadcast at tsys.com by clicking on the link under “Webcasts” on the main homepage. The replay will be archived for 12 months and will be available approximately 30 minutes after the completion of the call. A slide presentation to accompany the call will be available by clicking on the link under “Webcasts” on the main homepage of tsys.com.

Non-GAAP Measures

The financial highlights section of this release and this release contain the non-GAAP financial measures of revenues and operating results on a constant currency basis, basic EPS excluding merger and acquisition costs, net of taxes, operating income excluding merger and acquisition costs, revenues excluding reimbursable items, adjusted EBITDA, and adjusted cash EPS to describe TSYS’ performance. Management uses these non-GAAP financial measures to better understand and assess TSYS’ operating results and financial performance. TSYS believes these non-GAAP financial measures provide meaningful additional information about TSYS to assist investors in understanding and evaluating its operating results.

Additional information about non-GAAP financial measures and a reconciliation of those measures to the most directly comparable GAAP measures are included on pages 13 to 15 of this release.

About TSYS

At TSYS, (NYSE: TSS), we believe payments should revolve around people — not the other way around. We call this belief “People-Centered Payments^SM.” By putting people at the center of every decision we make, TSYS supports financial institutions, businesses and governments in more than 80 countries. Through NetSpend, a TSYS Company, we empower consumers with the convenience, security, and freedom to be self-banked. TSYS offers issuer services and merchant payment acceptance for credit, debit, prepaid, healthcare and business solutions.

TSYS’ headquarters are located in Columbus, Georgia, with local offices spread across the Americas, EMEA and Asia-Pacific. TSYS provides services to more than half of the top 20 international banks, and has been named one of the 2013 World’s Most Ethical Companies by Ethisphere magazine. TSYS routinely posts all important information on its website, for more please visit us at www.tsys.com.

2013

TSYS Reports Second Quarter Results/p. 4

Forward-Looking Statements

This press release contains “forward-looking statements” – that is, statements related to future, not past, events. Forward-looking statements often address our expected future business and financial performance and often contain words such as “expect,” “anticipate,” “intend,” “believe,” “should,” “plan,” “will,” “could,” and similar expressions. These forward-looking statements include, among others, statements regarding the NetSpend acquisition and the anticipated benefits from the NetSpend acquisition, the expected conversion of TSYS’ pipeline of accounts, TSYS’ revised earnings guidance for 2013 total revenues, revenues before reimbursable items, Adjusted EBITDA and Adjusted Cash EPS, and the assumptions underlying such statements. These statements are based on the current beliefs and expectations of TSYS’ management, are based on management’s assumptions and are subject to significant risks and uncertainties. Actual results may differ materially from those contemplated by the forward-looking statements. A number of important factors could cause actual results to differ materially from those contemplated by our forward-looking statements in this press release. Many of these factors are beyond TSYS’ ability to control or predict. These factors include, but are not limited to, TSYS’ ability to integrate NetSpend and achieve the anticipated growth opportunities and other benefits of the acquisition, the impact of consolidation among financial institutions and retail clients; TSYS ability to successfully renew or renegotiate agreements with its clients; the effect of current domestic and worldwide economic conditions; the material breach of security of any of TSYS’ systems; TSYS’ ability to adapt technology to changing industry and customer needs or trends; expenses TSYS incurs associated with the signing of a significant client; adverse developments with respect to the credit card industry in general, including a decline in the use of credit cards as a payment mechanism; the conversions and deconversions of clients; the impact of potential and completed acquisitions, including the costs associated therewith and TSYS’ ability to successfully integrate such acquisitions; risks associated with foreign operations, including adverse developments with respect to foreign currency exchange rates; the costs and effects of litigation, investigations or similar matters or adverse facts and developments relating thereto; TSYS’ ability to compete in a highly competitive market; changes occur in laws, rules, regulations, credit card association rules, the prepaid industry or other industry standards affecting TSYS and its clients; TSYS’ reliance on financial institution sponsors; the impact of business cycles and the credit risk of merchants; the costs associated with chargeback and fraud related liabilities; costs and reputational harm caused by interruptions in our processing systems; TSYS’ ability to protect its intellectual property and the costs associated therewith; and the loss of any key personnel and TSYS’ ability to attract qualified personnel. Additional risks and other factors that could cause actual results to differ materially from those contemplated in this release can be found in TSYS’ filings with the Securities and Exchange Commission, including our most recent Annual Report on Form 10-K. We believe these forward-looking statements are reasonable; however, undue reliance should not be placed on any forward-looking statements, which are based on current expectations. We do not assume any obligation to update any forward-looking statements as a result of new information, future developments or otherwise.

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2013

TSYS Announces Second Quarter 2013 Earnings

TSYS

Financial Highlights

(unaudited)

(in thousands, except per share data)

	Three Months Ended June 30,									Six Months Ended June 30,
	2013			2012			Percent Change			2013			2012			Percent Change
Total revenues	$	478,443			462,651			3.4	%	$	943,439			923,813			2.1	%
Cost of services		317,656			312,669			1.6			638,214			630,927			1.2
Selling, general and administrative expenses		64,220			57,886			10.9			130,274			115,959			12.3
NetSpend merger and acquisition expenses		1,253			—			na			4,734			—			na
Operating income		95,314			92,096			3.5			170,217			176,927			(3.8	)
Nonoperating income (expenses)		(620	)		(1,818	)		65.9			398			(2,223	)		nm
NetSpend merger and acquisition expenses—bridge loan facility & bonds		(6,934	)		—			na			(9,677	)		—			na
Income before income taxes, noncontrolling interests and equity in income of equity investments		87,760			90,278			(2.8	)		160,938			174,704			(7.9	)
Income taxes		29,947			24,553			22.0			47,793			54,108			(11.7	)
Income before noncontrolling interests and equity in income of equity investments		57,813			65,725			(12.0	)		113,145			120,596			(6.2	)
Equity in income of equity investments		2,748			2,252			22.0			6,565			5,026			30.6
Net income		60,561			67,977			(10.9	)		119,710			125,622			(4.7	)
Net income attributable to noncontrolling interests		(2,845	)		(1,267	)		nm			(4,965	)		(2,516	)		(97.3	)
Net income attributable to TSYS common shareholders	$	57,716			66,710			(13.5	)%	$	114,745			123,106			(6.8	)%
Basic earnings per share	$	0.31			0.35			(12.9	)%	$	0.61			0.65			(6.0	)%
Diluted earnings per share	$	0.31			0.35			(12.4	)%	$	0.61			0.65			(5.9	)%
Dividends declared per share	$	0.10			0.10					$	0.20			0.20
Non-GAAP measures:
Basic EPS excluding M&A expenses, net of income taxes	$	0.34			0.35			(4.3	)%	$	0.67			0.65			2.9	%
Adjusted cash earnings per share	$	0.38			0.40			(3.5	)%	$	0.77			0.73			5.2	%
Adjusted EBITDA	$	142,324			140,338			1.4	%	$	267,799			269,640			(0.7	)%

nm = not meaningful

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Page 5 of 15

TSYS Announces Second Quarter 2013 Earnings

TSYS

Consolidated Statements of Comprehensive Income

(unaudited)

(in thousands)

	Three Months Ended June 30,						Six Months Ended June 30,
	2013			2012			2013			2012
Net income	$	60,561			67,977		$	119,710			125,622
Other comprehensive income (loss), net of tax:
Foreign currency translation adjustments		(1,064	)		(10,027	)		(13,711	)		(7,065	)
Postretirement healthcare plan adjustments		155			23			310			287
Other comprehensive income (loss)		(909	)		(10,004	)		(13,401	)		(6,778	)
Comprehensive income		59,652			57,973			106,309			118,844
Comprehensive income attributable to noncontrolling interests		2,455			1,594			2,922			2,135
Comprehensive income attributable to TSYS common shareholders	$	57,197			56,379		$	103,387			116,709

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Page 6 of 15

TSYS Announces Second Quarter 2013 Earnings

TSYS

Earnings Per Share

(unaudited)

(in thousands, except per share data)

	Three Months Ended					Three Months Ended					Six Months Ended					Six Months Ended
	June 30, 2013					June 30, 2012					June 30, 2013					June 30, 2012
	Common Stock			Participating Securities		Common Stock			Participating Securities		Common Stock			Participating Securities		Common Stock			Participating Securities
Basic Earnings per share:
Net income	$	57,716					66,710				$	114,745					123,106
Less income allocated to nonvested awards		(175	)		175		(224	)		224		(385	)		385		(421	)		421
Net income allocated to common stock for EPS calculation ( a )	$	57,541			175		66,486			224	$	114,360			385		122,685			421
Average common shares outstanding ( b )		187,147			591		188,420			650		186,633			644		188,236			658
Average common shares and participating securities		187,738					189,070					187,277					188,894
Basic Earnings per share ( a )/( b )	$	0.31			0.30		0.35			0.34	$	0.61			0.60		0.65			0.64
Diluted Earnings per share:
Net income	$	57,716					66,710				$	114,745					123,106
Less income allocated to nonvested awards		(175	)		175		(223	)		223		(382	)		382		(419	)		419
Net income allocated to common stock for EPS calculation ( c )	$	57,541			175		66,487			223	$	114,363			382		122,687			419
Average common shares outstanding		187,147			591		188,420			650		186,633			644		188,236			658
Increase due to assumed issuance of shares related to common equivalent shares outstanding		981					1,270					1,576					1,159
Average common and common equivalent shares outstanding ( d )		188,128			591		189,690			650		188,209			644		189,395			658
Average common and common equivalent shares and participating securities		188,719					190,340					188,853					190,053
Diluted Earnings per share ( c )/( d )	$	0.31			0.30		0.35			0.34	$	0.61			0.59		0.65			0.64

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Page 7 of 15

TSYS Announces Second Quarter 2013 Earnings

TSYS

Segment Breakdown

(unaudited)

(in thousands)

	Three Months Ended June 30,												Six Months Ended June 30,
							Change												Change
	2013			2012			$			%			2013			2012			$			%
Revenues before reimbursable items
North America Services	$	214,526			205,565			8,961			4.4	%	$	420,122			409,614			10,508			2.6	%
International Services		93,209			99,047			(5,838	)		(5.9	)		185,802			195,538			(9,736	)		(5.0	)
Merchant Services		112,952			97,701			15,251			15.6			222,253			196,056			26,197			13.4
Intersegment revenues		(3,175	)		(3,621	)		446			12.3			(6,428	)		(7,337	)		909			12.4
Revenues before reimbursable items from external customers	$	417,512			398,692			18,820			4.7	%	$	821,749			793,871			27,878			3.5	%
Total revenues
North America Services	$	248,640			239,557			9,083			3.8	%	$	488,429			480,156			8,273			1.7	%
International Services		98,087			103,415			(5,328	)		(5.2	)		195,183			203,775			(8,592	)		(4.2	)
Merchant Services		136,458			124,903			11,555			9.3			269,359			250,420			18,939			7.6
Intersegment revenues		(4,742	)		(5,224	)		482			9.2			(9,532	)		(10,538	)		1,006			9.5
Revenues from external customers	$	478,443			462,651			15,792			3.4	%	$	943,439			923,813			19,626			2.1	%
Depreciation and amortization
North America Services	$	18,213			18,821			(608	)		(3.2	)%	$	36,296			37,274			(978	)		(2.6	)%
International Services		11,492			15,006			(3,514	)		(23.4	)		24,343			27,917			(3,574	)		(12.8	)
Merchant Services		10,362			8,668			1,694			19.5			21,515			17,453			4,062			23.3
Corporate Admin and Other		479			718			(239	)		(33.3	)		889			1,442			(553	)		(38.3	)
Total depreciation and amortization	$	40,546			43,213			(2,667	)		(6.2	)%	$	83,043			84,086			(1,043	)		(1.2	)%
Segment operating income
North America Services	$	79,896			72,231			7,665			10.6	%	$	147,099			140,578			6,521			4.6	%
International Services		8,056			9,438			(1,382	)		(14.6	)		14,682			13,552			1,130			8.3
Merchant Services		33,590			32,950			640			1.9			62,917			67,169			(4,252	)		(6.3	)
Corporate Admin and Other		(26,228	)		(22,523	)		(3,705	)		(16.4	)		(54,481	)		(44,372	)		(10,109	)		(22.8	)
Operating income	$	95,314			92,096			3,218			3.5	%	$	170,217			176,927			(6,710	)		(3.8	)%
Other:
Reimbursable items:
North America Services	$	34,114			33,992			122			0.4	%	$	68,307			70,542			(2,235	)		(3.2	)%
International Services		4,878			4,368			510			11.7			9,381			8,237			1,144			13.9
Merchant Services		23,506			27,202			(3,696	)		(13.6	)		47,106			54,364			(7,258	)		(13.4	)
Intersegment revenues		(1,567	)		(1,603	)		36			2.2			(3,104	)		(3,201	)		97			3.0
Reimbursable items	$	60,931			63,959			(3,028	)		(4.7	)%	$	121,690			129,942			(8,252	)		(6.4	)%

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Page 8 of 15

TSYS Announces Second Quarter 2013 Earnings

TSYS

Segment Breakdown

(unaudited)

(in thousands)

	Three Months Ended June 30,												Six Months Ended June 30,
							Change												Change
	2013			2012			$			%			2013			2012			$			%
Other:
Adjusted EBITDA	$	142,324			140,338			1,986			1.4	%	$	267,799			269,640			(1,841	)		(0.7	)%
Merger & acquisition expense		(1,253	)		—			(1,253	)		nm			(4,734	)		—						nm
Share-based compensation		(5,211	)		(5,029	)		(182	)		3.6			(9,804	)		(8,627	)		(1,177	)		13.6
Depreciation and amortization		(40,546	)		(43,213	)		2,667			(6.2	)		(83,044	)		(84,086	)		1,042			1.2
Nonopertaing expenses		(7,554	)		(1,818	)		(5,736	)		315.5			(9,279	)		(2,223	)		(7,056	)		(317.4	)
Income taxes		(29,947	)		(24,553	)		(5,394	)		22.0			(47,793	)		(54,108	)		6,315			11.7
Equity in income of joint ventures		2,748			2,252			496			22.0			6,565			5,026			1,539			30.6
Net income	$	60,561			67,977			(7,416	)		(10.9	)%	$	119,710			125,622			(1,178	)		(0.9	)%
													At						Change
													6/30/2013			12/31/2012			$			%
Volumes:
FTEs (full-time equivalents)
North America Services														4,252			3,964			288			7.3	%
International Services														2,371			2,624			(253	)		(9.6	)
Merchant Services														1,599			1,242			357			28.7
Corporate Admin and Other														491			415			76			18.3
FTEs														8,713			8,245			468			5.7	%
Total assets (in thousands)
North America Services													$	2,935,826			1,744,877			1,190,949			68.3	%
International Services														388,144			445,642			(57,498	)		(12.9	)
Merchant Services														696,189			703,725			(7,536	)		(1.1	)
Intersegment assets														(831,982	)		(870,406	)		38,424			4.4
Total assets													$	3,188,177			2,023,838			1,164,339			57.5	%
	Three Months Ended June 30,												Six Months Ended June 30,
							Change												Change
	2013			2012			Inc(Dec)			%			2013			2012			Inc(Dec)			%
North America Segment:
Accounts on File (AOF) (in millions)														430.7			387.3			43.4			11.2	%
Transactions (in millions)		2,235.0			2,003.8			231.2			11.5	%		4,248.4			3,871.0			377.3			9.7	%
International Segment:
AOF (in millions)														58.1			53.1			5.0			9.5	%
Transactions (in millions)		492.5			402.3			90.1			22.4	%		926.6			785.4			141.3			18.0	%
Merchant Segment:
Point-of-sale Transactions (in millions)		1,136.0			1,279.7			(143.7	)		(11.2	)%		2,235.2			2,499.4			(264.3	)		(10.6	)%
Dollar sales volume (in millions)	$	11,028		$	9,235		$	1,793			19.4	%	$	21,160		$	18,010		$	3,150			17.5	%

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Page 9 of 15

TSYS Announces Second Quarter 2013 Earnings

TSYS

Balance Sheet

(unaudited)

(in thousands)

	Jun 30, 2013			Dec 31, 2012
Assets
Current assets:
Cash and cash equivalents	$	1,374,209			247,612
Restricted cash		713			282
Accounts receivable, net		250,124			247,083
Deferred income tax assets		8,355			9,825
Prepaid expenses and other current assets		90,091			69,924
Total current assets		1,723,492			574,726
Goodwill		517,243			518,344
Property and equipment, net		248,778			260,389
Computer software, net		243,138			226,917
Contract acquisition costs, net		166,045			161,267
Other intangible assets, net		118,923			130,054
Equity investments, net		94,447			87,764
Deferred income tax assets, net		5,873			5,334
Other assets		70,238			59,043
Total assets	$	3,188,177			2,023,838
Liabilities
Current liabilities:
Accounts payable	$	28,623			63,370
Current portion of borrowings		21,032			27,361
Current portion of obligations under capital leases		23,025			13,263
Accrued salaries and employee benefits		17,783			26,243
Other current liabilities		117,961			100,282
Total current liabilities		208,424			230,519
Long-term borrowings, excluding current portion		1,260,625			174,859
Deferred income tax liabilities		66,885			48,074
Obligations under capital leases, excluding current portion		13,303			17,155
Other long-term liabilities		65,021			68,791
Total liabilities		1,614,258			539,398
Redeemable noncontrolling interest		39,101			39,505
Equity
Shareholders’ equity:
Common stock		20,281			20,247
Additional paid-in capital		138,936			141,793
Accumulated other comprehensive income (loss), net		(9,950	)		1,408
Treasury stock		(259,661	)		(287,301	)
Retained earnings		1,626,300			1,549,063
Total shareholders’ equity		1,515,906			1,425,210
Noncontrolling interests in consolidated subsidiaries		18,912			19,725
Total equity		1,534,818			1,444,935
Total liabilities and equity	$	3,188,177			2,023,838

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Page 10 of 15

TSYS Announces Second Quarter 2013 Earnings

TSYS

Cash Flow

(unaudited)

(in thousands)

	Six Months Ended June 30,
	2013			2012
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income	$	119,710			125,622
Adjustments to reconcile net income to net cash provided by operating activities:
Equity in income of equity investments		(6,565	)		(5,026	)
Dividends received from equity investments		1,016			1,098
Net loss on foreign currency translation		(72	)		1,635
Depreciation and amortization		83,043			84,086
Amortization of debt issuance costs		6,315			94
Amortization of bond discount		39			—
Changes in fair value of private equity investments		(1,227	)		—
Share-based compensation		9,804			8,626
Excess tax benefit from share-based payment arrangements		(2,040	)		(653	)
Provisions for bad debt expense and billing adjustments		1,541			356
Charges for transaction processing provisions		7,093			971
Deferred income tax expense		20,420			1,746
Loss on disposal of equipment, net		55			29
Changes in operating assets and liabilities:
Restricted cash		(404	)		—
Accounts receivable		(8,031	)		(376	)
Prepaid expenses, other current assets and other long-term assets		(24,507	)		(4,691	)
Accounts payable		(34,602	)		2,743
Accrued salaries and employee benefits		(7,989	)		(18,602	)
Other current liabilities and other long-term liabilities		(6,351	)		5,746
Net cash provided by operating activities		157,248			203,404
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchases of property and equipment, net		(13,701	)		(13,810	)
Additions to licensed computer software from vendors		(27,711	)		(17,278	)
Additions to internally developed computer software		(12,522	)		(10,121	)
Cash used in acquisitions, net of cash acquired		—			(1,750	)
Purchase of private equity investments		(1,006	)		(623	)
Additions to contract acquisition costs		(24,506	)		(16,740	)
Net cash used in investing activities		(79,446	)		(60,322	)
CASH FLOWS FROM FINANCING ACTIVITIES:
Principal payments on long-term borrowings and capital lease obligations		(20,073	)		(13,038	)
Proceeds from borrowings of long-term borrowings		1,095,661			8,633
Proceeds from exercise of stock options		19,449			4,698
Excess tax benefit from share-based payment arrangements		2,040			653
Repurchase of common stock under plans and tax withholding		(6,268	)		(338	)
Debt issuance costs		(13,018	)		—
Subsidiary dividends paid to noncontrolling shareholders		(4,139	)		(1,087	)
Dividends paid on common stock		(18,758	)		(37,809	)
Net cash provided by (used in) financing activities		1,054,894			(38,288	)
CASH AND CASH EQUIVALENTS:
Effect of exchange rate changes on cash and cash equivalents		(6,099	)		(2,488	)
Net increase in cash and cash equivalents		1,126,597			102,306
Cash and cash equivalents at beginning of period		247,612			316,337
Cash and cash equivalents at end of period	$	1,374,209			418,643

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Page 11 of 15

TSYS Announces Second Quarter 2013 Earnings

Supplemental Information:

	Accounts on File
	Total
(in millions)	June 2013		June 2012		% Change
Consumer Credit		208.6		199.4		4.7
Retail		25.9		25.2		2.8
Total Consumer		234.5		224.6		4.5
Commercial		38.6		36.1		6.7
Other		15.3		9.6		60.5
Subtotal		288.4		270.3		6.7
Prepaid/Stored Value		102.8		105.4		(2.4	)
Government Services		60.6		30.8		96.4
Commercial Card Single Use		37.0		34.0		8.8
Total AOF		488.8		440.5		11.0

Growth in Accounts on File (in millions):

	June 2012 to June 2013			June 2011 to June 2012
Beginning balance		440.5			376.0
Change in accounts on file due to:
Internal growth of existing clients		35.2			33.9
New clients		76.1			51.0
Purges/Sales		(62.7	)		(17.6	)
Deconversions		(0.3	)		(2.8	)
Ending balance		488.8			440.5

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Page 12 of 15

TSYS Announces Second Quarter 2013 Earnings

Reconciliation of GAAP to Non-GAAP

Non-GAAP Measures

The schedule below provides a reconciliation of revenues and operating results on a constant currency basis to reported revenues and operating income. This non-GAAP measure presents year-to-date 2013 financial results using the previous year’s foreign currency exchange rates. On a year-to-date constant currency basis, TSYS’ total revenues grew 3.2% as compared to a reported GAAP increase of 2.1%.

The schedule below also provides a reconciliation of basic EPS, excluding merger and acquisition costs, net of taxes, to basic EPS and operating income, excluding merger and acquisition costs, to operating income. On a year-to-date basis, TSYS’ basic EPS excluding merger and acquisition costs grew 2.9% as compared to a reported GAAP decrease of 6.0%.

The schedule below also provides a reconciliation of basic EPS, adjusted for the after-tax impact of acquisition intangible amortization, share-based compensation and merger and acquisition costs, to adjusted cash EPS.

The schedule also provides a reconciliation of net income, adjusted for equity in income of equity investments, income taxes, nonoperating expense, depreciation and amortization, share-based compensation, and merger and acquisition expenses, to adjusted EBITDA.

TSYS believes that non-GAAP financial measures are important to enable investors to understand and evaluate its ongoing operating results. Accordingly, TSYS includes non-GAAP financial measures when reporting its financial results to shareholders and investors in order to provide them with an additional tool to evaluate TSYS’ ongoing business operations. TSYS believes that the non-GAAP financial measures are representative of comparative financial performance that reflects the economic substance of TSYS’ current and ongoing business operations.

Although non-GAAP financial measures are often used to measure TSYS’ operating results and assess its financial performance, they are not necessarily comparable to similarly titled captions of other companies due to potential inconsistencies in the method of calculation.

TSYS believes that its use of non-GAAP financial measures provides investors with the same key financial performance indicators that are utilized by management to assess TSYS’ operating results, evaluate the business and make operational decisions on a prospective, going-forward basis. Hence, management provides disclosure of non-GAAP financial measures to give shareholders and potential investors an opportunity to see TSYS as viewed by management, to assess TSYS with some of the same tools that management utilizes internally and to be able to compare such information with prior periods. TSYS believes that the presentation of GAAP financial measures alone would not provide its shareholders and potential investors with the ability to appropriately analyze its ongoing operational results, and therefore expected future results. TSYS therefore believes that inclusion of non-GAAP financial measures provides investors with additional information to help them better understand its financial statements just as management utilizes these non-GAAP financial measures to better understand the business, manage budgets and allocate resources.

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Page 13 of 15

TSYS Announces Second Quarter 2013 Earnings

Reconciliation of GAAP to Non-GAAP

Constant Currency Comparison (unaudited) (in thousands)
	Three Months Ended June 30,								Six Months Ended June 30,
	2013			2012		Percent Change			2013			2012		Percent Change
Consolidated
Constant currency (1)	$	484,810			462,651		4.8	%	$	953,825			923,813		3.2	%
Foreign currency (2)		(6,367	)		—					(10,386	)		—
Total revenues	$	478,443			462,651		3.4	%	$	943,439			923,813		2.1	%
Constant currency (1)	$	423,726			398,692		6.3	%	$	831,918			793,871		4.8	%
Foreign currency (2)		(6,214	)		—					(10,169	)		—
Total revenues before reimbursable items	$	417,512			398,692		4.7	%	$	821,749			793,871		3.5	%
Constant currency (1)	$	96,426			92,096		4.7	%	$	171,398			176,927		(3.1	)%
Foreign currency (2)		(1,112	)		—					(1,181	)		—
Operating income	$	95,314			92,096		3.5	%	$	170,217			176,927		(3.8	)%
International Services
Constant currency (1)	$	104,480			103,415		1.0	%	$	205,665			203,775		0.9	%
Foreign currency (2)		(6,393	)		—					(10,482	)		—
Total revenues	$	98,087			103,415		(5.2	)%	$	195,183			203,775		(4.2	)%

(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.

Basic EPS Excluding Merger and Acquisition Costs (unaudited) (in thousands)
	Three Months Ended June 30,							Six Months Ended June 30,
	2013		2012		Percent Change			2013		2012		Percent Change
Net income attributable to TSYS common shareholders (a)	$	57,716		66,710		(13.5	)%	$	114,745		123,106		(6.8	)%
Add: Merger and acquisition expenses, net of taxes*		5,653		—					10,875		—
Net income attributable to TSYS common shareholders (c)	$	63,369		66,710		(5.0	)%	$	125,620		123,106		2.0	%
Average common shares outstanding (b)		187,738		189,070					187,277		188,894
Basic Earnings per share (a)/(b)	$	0.31		0.35		(12.9	)%	$	0.61		0.65		(6.0	)%
Basic Earnings per share excluding merger and acquisition expenses (c)/(b)	$	0.34		0.35		(4.3	)%	$	0.67		0.65		2.9	%

*- Certain merger and acquisition costs are nondeductible for income tax purposes

Operating Income Excluding Merger and Acquisition Costs (unaudited) (in thousands)
	Three Months Ended June 30,							Six Months Ended June 30,
	2013		2012		Percent Change			2013		2012		Percent Change
Operating income	$	95,314		92,096		3.5	%	$	170,217		176,927		(3.8	)%
Add: Merger and acquisition expenses		1,253		—					4,734		—
Operating income excluding merger and acquisition costs	$	96,567		92,096		4.9	%	$	174,951		176,927		(1.1	)%
Revenues Before Reimbursable Items (unaudited) (in thousands)
	Three Months Ended June 30,							Six Months Ended June 30,
	2013		2012		Percent Change			2013		2012		Percent Change
Total Revenues	$	478,443		462,651		3.4	%	$	943,439		923,813		2.1	%
Reimbursable Items		60,931		63,959					121,690		129,942
Revenues Before Reimbursable Items	$	417,512		398,692		4.7	%	$	821,749		793,871		3.5	%

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Page 14 of 15

TSYS Announces Second Quarter 2013 Earnings

Reconciliation of GAAP to Non-GAAP

Adjusted Cash Earnings Per Share

(unaudited)

(in thousands except per share data)

	Three Months Ended								YTD		Three Months Ended				Six Months Ended
	Mar 31, 2012		Jun 30, 2012		Sep 30, 2012		Dec 31, 2012		Dec 31, 2012		Mar 31, 2013		Jun 30, 2013		Jun 30, 2013		Jun 30, 2012
Net Income Available to TSYS Common Shareholders
As reported (GAAP)	$	56,395	$	66,710	$	60,312	$	60,862	$	244,280	$	57,028	$	57,716	$	114,745	$	123,106
Adjust for amounts attributable to TSYS common shareholders (net of taxes):
Acquisition intangible amortization		3,933		4,409		4,383		4,528		17,282		6,096		4,847		10,848		8,355
Share-based compensation		2,363		3,686		2,489		4,169		12,683		3,494		3,431		6,917		6,004
Cash earnings		62,691		74,805		67,184		69,559		274,245		66,618		65,994		132,510		137,465
M&A expenses		—		—		—		—		—		5,222		5,653		10,875		—
Cash earnings adjusted	$	62,691	$	74,805	$	67,184	$	69,559	$	274,245	$	71,840	$	71,647	$	143,385	$	137,465
Basic EPS—Net Income Available to TSYS Common Shareholders
As reported (GAAP)	$	0.30	$	0.35	$	0.32	$	0.33	$	1.30	$	0.31	$	0.31	$	0.61	$	0.65
Adjust for amounts attributable to TSYS common shareholders (net of taxes):
Acquisition intangible amortization		0.02		0.02		0.02		0.02		0.09		0.03		0.03		0.06		0.04
Share-based compensation		0.01		0.02		0.01		0.02		0.07		0.02		0.02		0.04		0.03
Cash earnings per share		0.33		0.40		0.36		0.37		1.46		0.36		0.35		0.71		0.73
M&A expenses		—		—		—		—		—		0.03		0.03		0.06		—
Adjusted cash earnings per share	$	0.33	$	0.40	$	0.36	$	0.37	$	1.46	$	0.38	$	0.38	$	0.77	$	0.73
Average common shares and participating securities		188,718		189,070		187,878		186,471		188,030		186,807		187,738		187,277		188,894

* Basic and cash EPS amounts do not total due to rounding.

Adjusted EBITDA

(unaudited)

(in thousands )

	Three Months Ended												YTD			Three Months Ended						Six Months Ended
	Mar 31, 2012			Jun 30, 2012			Sep 30, 2012			Dec 31, 2012			Dec 31, 2012			Mar 31, 2013			Jun 30, 2013			Jun 30, 2013			Jun 30, 2012
Net income	$	57,644		$	67,977		$	62,043		$	62,257		$	249,921		$	59,149		$	60,561		$	119,710		$	125,622
Adjusted for:
Deduct: Equity in Income of Equity Investments		(2,774	)		(2,252	)		(1,957	)		(3,188	)		(10,171	)		(3,817	)		(2,748	)		(6,565	)		(5,026	)
Add: Income Taxes		29,556			24,553			30,228			30,767			115,104			17,845			29,947			47,793			54,108
Add: Nonoperating expense		405			1,818			579			(5	)		2,797			1,726			7,554			9,279			2,223
Add: Depreciation and amortization		40,873			43,213			43,243			43,281			170,610			42,498			40,546			83,044			84,086
EBITDA		125,704			135,309			134,136			133,112			528,261			117,401			135,860			253,261			261,013
Adjust for:
Add: Share-based compensation		3,598			5,029			3,722			6,273			18,622			4,593			5,211			9,804			8,627
Add: NetSpend merger and acquisition operating expenses		—			—			—			—			—			3,481			1,253			4,734			—
Adjusted EBITDA	$	129,302		$	140,338		$	137,858		$	139,385		$	546,883		$	125,475		$	142,324		$	267,799		$	269,640

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Page 15 of 15

EX-99.2

2013 Second Quarter and YTD Results

July 23, 2013

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Exhibit 99.2

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’

filings with the Securities and Exchange

Commission, including its 2012 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

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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; EBITDA, Adjusted EBITDA and Adjusted cash earnings per share.

The most comparable GAAP measures to these measures are revenues;

operating margin; revenues; cash flows from operating activities; net income;

net income; and earnings per share, 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

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Phil Tomlinson

Chairman and Chief Executive Officer

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Troy Woods

President & Chief Operating Officer

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2Q 2013 North America Segment Highlights

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Improving Revenue

Operating Income up 10.6%

Margin Expansion: up 210 BPS over 2Q12

Shifting Conversion Pipeline

(*) Revenues Before Reimbursable Items

2Q 2013 North America Segment Highlights

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(*)

Growth

Excluding

Prepaid,

Government

Services

and

Single

Use

Accounts

Tenth Straight Quarter of Account On File YOY Growth

Thirteenth Straight Quarter of Transaction YOY Growth

Same Client Transactions up 11.4%: Fifteenth Straight Quarter of

YOY Growth

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8

North America Conversion Pipeline

Reporting

Period

1Q13

2Q13

3Q13

4Q13

1Q14

2Q14

3Q14

4Q14

Conversion

Pipeline

Net Total

4Q12

0.20

0.10

11.80

14.10

0.10

75.40

—

0.70

102.40

2013 Total

26.20

1Q13

—

0.10

10.90

0.50

0.70

79.50

9.40

0.30

101.40

2013 Total

11.50

2Q13

—

—

0.50  (1)

0.50

—

79.40

9.20

—

89.60

2013 Total

1.00

(1)  Converted 10.7M Accounts 7/13/13

2Q 2013 North America Segment Highlights

(in millions)

2Q 2013 International Segment Highlights

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Revenue $93.2M* –

down 5.9%

–

Up 0.4% on Constant Currency

Currency Headwinds Continue: Q2 $6.2M* YTD $10.2M*

Margin Expansion Continues

1M Account Conversion Pipeline

Renewed Focus on Growth

(*) Revenues Before Reimbursable Items

2Q 2013 International Segment Highlights

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Record Number Accounts Processed

Solid Transaction Growth

Same Client Transaction Growth 9.3%

2Q 2013 Merchant Segment Highlights

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Acquisitions Fueling Growth

Direct Exceeds Indirect

Sequential Quarter Margin Expansion

Bank of America Merchant Services Extended

EMV Certification Complete

Back-end Integration on Schedule

–

Headwind on Margin

(*) Revenues Before Reimbursable Items

2Q 2013 Merchant Segment Highlights

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(*) Excludes Managed Accounts and ProPay

Record SBS Sales Volume

Indirect Faces Headwinds but Optimistic Growth Still Achievable

POS Transactions, Excluding Deconverted Accounts, Increased 4.8%

2Q 2013 NetSpend Segment Highlights

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Revenue $105M –

up 23%

Significant Sequential Quarter Margin Expansion

Extended Exclusive ACE Agreement 5 Years

Added Over 3,500 Retail Locations

Added 75 New PayCard Clients

(*) Operating Income Excluding Amortization of Acquisition Intangibles, M&A Costs

and Non-recurring Items

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2Q 2013 NetSpend Segment Highlights

Gross Dollar Volume

YOY Growth %

Direct Deposit Active Cards

YOY Growth %

Direct Deposit Active Cards up 42%

Total Active Accounts up 38%

Gross Dollar Volume (GDV) up 30%

Jim Lipham

Chief Financial Officer

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Consolidated Selected Financial Highlights

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Total

System

Services,

Inc.®

Proprietary.

All

rights

reserved

worldwide.

$ 478,443

$ 462,651

3.4%

Total Revenues

$ 943,439

$ 923,813

2.1%

417,512

398,691

4.7

Revenues Before Reimbursable Items

821,749

793,870

3.5

95,314

92,096

3.5

Operating Income

170,217

176,927

(3.8)

57,716

66,710

(13.5)

Net Income Attributable to TSYS

Common Shareholders

114,745

123,105

(6.8)

2,727.4

2,406.1

13.4

Total Cardholder Transactions (in millions)

5,175.0

4,656.4

11.1

Basic Earnings Per Share (EPS)

Attributable to TSYS Common

Shareholders:

$0.31

$0.35

(12.9)

As Reported (GAAP)

$0.61

$0.65

(6.0)

$0.34

$0.35

(4.3)

Excluding M&A expenses

$0.67

$0.65

2.9

$0.38

$0.40

(3.5)

Adjusted Cash EPS*

$0.77

$0.73

5.2

$142,324

$140,338

1.4

Adjusted EBITDA*

$267,799

$269,640

(0.7)

YTD

2013

YTD

2012

Percent

Change

(in thousands, except per share data)

2

Qtr

2013

2

Qtr

2012

Percent

Change

(*) Adjusted Cash EPS and Adjusted EBITDA definitions are contained in Appendix

nd

nd

2013 YTD Revenue Change

Revenues Before Reimbursable Items

17

©2013

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12%

16%

4%

0%

5.4%

Internal

Growth

New

Clients

2.9%

Acquisitions

Lost

Business

(5.3%)

Non-recurring

Items

(0.6%)

Price

Compression

(2.3%)

(8.2%)

Reported

3.5%

Currency

(1.3%)

4.7%

8%

Consumer Credit

208.6

199.4

4.7

208.6

203.8

2.4

Retail

25.9

25.2

2.8

25.9

25.2

2.6

Total Consumer

234.5

224.6

4.5

234.5

229.0

2.4

Commercial

38.6

36.1

6.7

38.6

37.9

1.8

Other

15.3

9.6

60.5

15.3

13.4

14.1

Subtotal

288.4

270.3

6.7

288.4

280.3

2.9

Prepaid /

Stored Value

102.8

105.4

(2.4

)

102.8

107.3

(4.2

)

Government

Services

60.6

30.8

96.4

60.6

59.4

2.1

Commercial Card

Single Use

37.0

34.0

8.8

37.0

31.6

17.0

Total AOF

488.8

440.5

11.0

488.8

478.6

2.1

Consolidated Accounts on File Portfolio Summary

(in millions)

Jun

2013

Jun

2012

%

Change

Jun

2013

Mar

2013

%

Change

18

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Cash Flow Strength:

2013 TTM Consolidated Financial Highlights

$545

$410

$271

$244

$0

$75

$150

$225

$300

$375

$450

$525

$600

Adjusted EBITDA

Cash flow from operations

Free cash flow

Net income

19

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TTM = Trailing Twelve Months

(in millions)

NetSpend Acquisition

Closed July 1

Approximately $1.4 billion in consideration

–

Includes cash from borrowings and equity

–

Conversion

of

NetSpend

unvested

options

and

nonvested

awards

to

TSYS’

equity

New operating segment named “NetSpend”

One-time M&A costs will also impact second half of 2013 of $11.3 million

Interest expense with new borrowings $23.0-$24.5 million in 2013

Approximately $67 million annual amortization of acquisition intangibles

Synergies

©2013

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20

NetSpend Acquisition Financing

May Bond Issuance:

$1,100M*

–

$550M of 5-year notes with a 2.375% coupon

–

$550M of 10-year notes with a 3.750% coupon

July 5-year Term Debt:

$200M

July Credit Facility Revolver Draw:

$100M

Total Acquisition Debt:

$1,400M

Other Outstanding Long-term Debt:

$  44M

Credit Facility Term Loan Balance:

$143M

©2013

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21

(*)

Shown

at

par

value;

does

not

include

bond

issuance

discounts

or

fees

2013 Revised Guidance*

Range

Range

Percent Change

Total Revenues

$2,137

to

$2,180

14 %

to

17 %

Revenues Before Reimbursable Items

$1,898

to

$1,936

17%

to

20%

Adjusted EBITDA

$639

to

$652

17%

to

19%

Adjusted Cash EPS

$1.69

to

$1.72

16%

to

18%

(in millions, except per share data)

22

©2013

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(*) See Appendix for guidance assumptions

2013 Guidance Reconciliation

Total Revenues

Revenues

Before Reimbursables

Original Guidance

$1,955

to

$1,995

$1,711

to

$1,746

NetSpend Acquisition

197

to

200

197

to

200

Reimbursable Items

(5)

to

(5)

--

--

Currency Translation (Jun YTD)

(10)

to

(10)

(10)

to

(10)

Revised Guidance

$2,137

to

$2,180

$1,898

to

$1,936

(in millions)

23

©2013

Total

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2013 Revised Guidance Revenue Change

Revenues Before Reimbursable Items

24

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30%

15%

0%

Internal

Growth

New

Clients

3-4%

Acquisitions

Lost

Business,

Non-recurring

Items and

Price

Compression

(5-7%)

Guidance

17-20%

Currency

5-7%

15-17%

(1%)

Closing Remarks

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Q&A

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Appendix

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Appendix: Non-GAAP Items –

Adjusted EBITDA and

Adjusted Cash EPS

•

Adjusted EBITDA is net income excluding equity in income of equity investments, nonoperating income/(expense), taxes,

depreciation, amortization and stock-based compensation expenses and other non-recurring items..

•

Adjusted cash EPS is adjusted cash earnings divided by weighted average shares outstanding used for basic EPS

calculations. Adjusted cash earnings is net income excluding the

after-tax impact of stock-based compensation expenses,

amortization of acquisition intangibles, and other non-recurring items.

•

The Company believes that these non-GAAP financial measures it presents are useful to investors in evaluating the

Company’s operating performance for the following reasons:

–

adjusted EBITDA and Adjusted cash EPS are widely used by investors to measure a company’s operating performance without

regard to items, such as interest expense, income tax expense, depreciation and amortization, merger and acquisition expenses

and employee stock-based compensation expense that can vary substantially from company to company depending upon their

respective financing structures and accounting policies, the book values of their assets, their capital structures and the methods by

which their assets were acquired; and

–

securities

analysts

use

adjusted

EBITDA

and

Adjusted

cash

EPS

as

supplemental

measures

to

evaluate

the

overall

operating

performance of companies.

•

By comparing the Company’s adjusted EBITDA and Adjusted cash EPS in different historical periods, investors can evaluate

the Company’s operating results without the additional variations caused by employee stock-based compensation expense,

which may not be comparable from period to period due to changes

in the fair market value of the Company’s common stock

(which is influenced by external factors like the volatility of public markets and the financial performance of the Company’s

peers) and is not a key measure of the Company’s operations.

•

The Company’s management uses the non-GAAP financial measures:

–

as measures of operating performance, because they exclude the impact of items not directly resulting from the Company’s core

operations;

–

for planning purposes, including the preparation of the Company’s annual operating budget;

–

to allocate resources to enhance the financial performance of the Company’s business;

–

to evaluate the effectiveness of the Company’s business strategies; and

–

in communications with the Company’s board of directors concerning the Company’s financial performance.

©2013

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28

Appendix: Non-GAAP Reconciliation –

Revenues Before Reimbursable Items

Three Months Ended                  Six Months Ended

6/30/13                 6/30/12                       

6/30/13                 6/30/12

Total Revenues

$  478,443      $  462,651     

$  943,439     

$  923,813     

Reimbursable Items

60,931

63,959

121,690

129,942

Revenues Before Reimbursable Items

$   417,512

$   398,692

$   821,749

$   793,871

(in thousands)

29

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Three Months Ended

6/30/13        6/30/12

Three Months Ended

6/30/13     6/30/12

Three Months Ended

6/30/13      6/30/12

Operating Income (a)

$  79,896      $  72,231     

$  8,056     

$  9,438     

$  33,590      $  32,950     

Total Revenues (b)

248,640

239,557

98,087

103,415

136,458

124,903

Reimbursable Items

34,114

33,992

4,878

4,368

23,506

27,202

Revenues Before

Reimbursable Items(c)

214,526

205,565

93,209

99,047

112,952

97,701

Operating Margin (a)/(b)

32.13%

30.15%

8.21%

9.13%

24.62%

26.38%

Operating Margin Excluding Reimbursables (a)/(c)

37.24%

35.14%

8.64%

9.53%

29.74%

33.73%

Appendix: Non-GAAP Reconciliation –

Segment

Operating Margin Excluding Reimbursable Items

North America

International

Merchant

(in thousands)

30

©2013

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Six

Months Ended

6/30/13        6/30/12

Percentage

Change

Three

Months Ended

6/30/13        6/30/12

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)

$ 484,810

$ 462,651

4.8%

$953,825

$ 923,813

3.2%

Foreign Currency (2)

(6,367)

---

(10,386)

---

Total Revenues

$478,443

$462,651

3.4%

$943,439

$923,813

2.1%

International Services:

Constant Currency (1)

$ 104,480

$103,415

1.0%

$ 205,665

$ 203,775

0.9%

Foreign Currency (2)

(6,393)

---

(10,482)

---

Total Revenues

$98,087

$103,415

(5.2%)

$195,183

$203,775

(4.2%)

31

©2013

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Six

Months Ended

6/30/13        6/30/12

Percentage

Change

Three

Months Ended

6/30/13        6/30/12

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)

$ 423,725

$ 398,692

6.3%

$831,918

$ 793,871

4.8%

Foreign Currency (2)

(6,213)

---

(10,169)

---

Revenues before

reimbursable items

$417,512

$398,692

4.7%

$821,749

$793,871

3.5%

International Services:

Constant Currency (1)

$ 99,449

$99,047

0.4%

$ 196,067

$ 195,538

0.3%

Foreign Currency (2)

(6,240)

---

(10,265)

---

Revenues before

reimbursable items

$93,209

$99,047

(5.9%)

$185,802

$195,538

(5.0%)

32

©2013

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Appendix: Non-GAAP Reconciliation –

EBITDA and Adjusted EBITDA

(in thousands)

33

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Three Months Ended

Six Months Ended

Mar

Jun

Sep

Dec

Mar

Jun

Jun

Jun

2012

2012

2012

2012

2013

2013

2013

2012

Net income :

As reported (GAAP) (a)

$57,644

$67,977

$62,043

$62,257

$59,149

$60,561

$119,710

$125,622

Adjusted for:

Deduct: Equity in Income of

Equity Investments

(2,774)

(2,252)

(1,957)

(3,188)

(3,817)

(2,748)

(6,565)

(5,026)

Add: Income Taxes

29,556

24,553

30,228

30,767

17,845

29,947

47,793

54,108

Add: Nonoperating expenses

405

1,818

579

(5)

1,726

7,554

9,279

2,223

Add: Depreciation and

amortization

40,873

43,213

43,243

43,281

42,498

40,546

83,044

84,086

EBITDA

$125,704

$135,309

$134,136

$133,112

$117,401

$135,860

$253,261

$261,013

Adjust for:

Add: Share-based

compensation

3,598

5,029

3,722

6,273

4,593

5,211

9,804

8,627

Add: NetSpend  M&A expenses

--

--

--

--

3,481

1,253

4,734

--

Adjusted EBITDA

$129,302

$140,338

$137,858

$139,385

$125,475

$142,324

$267,799

$269,640

Appendix: Non-GAAP Reconciliation –

Adjusted Cash EPS

(in thousands)

34

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Three Months Ended

Six Months Ended

Mar

Jun

Sep

Dec

Mar

Jun

Jun

Jun

2012

2012

2012

2012

2013

2013

2013

2012

Net income Available to TSYS

Common Shareholders:

As reported (GAAP) (a)

$56,395

$66,710

$60,312

$60,862

$57,028

$57,716

$114,745

$123,106

Adjusted for amounts

attributable to TSYS common

shareholders (net of taxes):

Acquisition intangible

amortization

3,933

4,409

4,383

4,528

6,096

4,847

10,848

8,355

Share-based compensation

2,363

3,686

2,489

4,169

3,494

3,431

6,917

6,004

Cash earnings

$62,691

$74,805

$67,184

$69,559

$66,618

$65,994

$132,510

$137,465

M&A expenses

--

--

--

--

$5,222

$5,653

$10,875

--

Adjusted cash earnings (b)

$62,691

$74,805

$67,184

$69,559

$71,840

$71,647

$143,385

$137,465

Average common shares

outstanding and participating

securities(c)

188,718

189,070

187,878

186,471

186,807

187,738

187,277

188,894

Basic EPS Available to TSYS

Common Shareholders (a) / (c)

$0.30

$0.35

$0.32

$0.32

$0.31

$0.31

$0.71

$0.73

Adjusted cash EPS Available to

TSYS Common Shareholders

(b) / (c)

$0.33

$0.40

$0.36

$0.37

$0.38

$0.38

$0.77

$0.73

Appendix: Non-GAAP Reconciliation –

EBITDA and Adjusted EBITDA

Trailing Twelve

Months Ended

6/30/2013

Net Income

$     244,010

Adjusted for:

Deduct: Equity in Income of Equity Investments

(11,709)

Add: Income Taxes

108,787

Add: Nonoperating expense

9,854

Add: Depreciation and Amortization

169,568

EBITDA

$    520,510

Adjust for: Share-based compensation

19,798

NetSpend M&A Operating Expenses

4,734

Adjusted EBITDA

$    545,042

(in thousands)

35

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Appendix: Non-GAAP Reconciliation –

Free Cash Flow

Trailing Twelve

Months Ended

6/30/2013

Cash Flows from Operating Activities

$     409,596 

Less:

Purchase of Property and Equipment

(31,286)

Additions to Licensed Computer Software from Vendors

(43,434)

Additions to Internally Developed Computer Software

(21,686)

Additions to Contract Acquisition Costs

(42,150)

Free Cash Flow

$     271,040

(in thousands)

36

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Mar 31,

2013

Dec 31,

2012

Jun 30,

2012

Jun 30,

2013

Sep 30,

2012

Appendix: Non-GAAP Reconciliation –

NetSpend

Adjusted Operating Income

Mar 31,

2012

Operating income (loss) (GAAP)

($  8,964)

$     17,430

$     7,869

$   17,594

$   18,332

$  15,799

Adjusted for:

Add: Amortization of acquisition

intangibles

881

534

446

434

590

431

Add: Settlement (gains) and

other losses

25,315

1,533

10,300

(160)

48

3,423

Add: M&A expenses

--

--

--

--

2,656

3,219

Adjusted operating income

$  17,232

$    19,497

$    18,615

$  17,868

$  21,626

$ 22,872

(in thousands)

37

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Three Months Ended

Appendix: 2013 Revised Guidance Assumptions

The guidance includes:

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38

•

NetSpend’s operating results for six months of 2013;

•

Excludes one-time expenses incurred in connection with the NetSpend

acquisition of $16.0 million;

•

Assumes approximately $33.5 million ($67 million on an annual basis)

of acquisition intangible amortization associated with the NetSpend

acquisition;

•

No significant movement in foreign exchange rates; and

•

Minimal synergies for 2013.