8-K

UNITED STATES

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

October 28, 2014

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 October 28, 2014, Total System Services, Inc. (“Registrant”) issued a press release announcing financial results for the third quarter ended September 30, 2014. 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 October 28, 2014, Registrant will hold an investor conference call and webcast to discuss its financial results for the third quarter ended September 30, 2014. 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 October 28, 2014
99.2	Registrant’s presentation dated October 28, 2014

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: October 28, 2014	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 Third Quarter 2014 Total Revenues Increased 8.1%

Adjusted Earnings Per Share Increased 12.5%

COLUMBUS, Ga., Oct. 28, 2014 — TSYS (NYSE: TSS) today reported results for the third quarter of 2014.

“We had an outstanding third quarter as we saw our organic revenue grow 8.5%, consolidated adjusted operating margin increase to 28.9% and all four segments improve their adjusted operating margins on a sequential basis for the second quarter in a row,” said M. Troy Woods, president and chief executive officer of TSYS.

“Our incredibly strong foundation allows our team members to focus on growing our company in order to achieve our vision of being the leading global payment solutions provider,” added Woods.

Highlights for the third quarter of 2014 include:

• GAAP operating margin was 23.4%.

• Total revenues for the quarter were $616.9 million, an increase of 8.1%. Revenues before reimbursable items were $552.9 million, an increase of 8.5%.

• Adjusted EBITDA was $198.0 million, an increase of 10.4%.

• Income from continuing operations attributable to TSYS shareholders was $82.9 million, an increase of 27.9%.

• Adjusted earnings per share (EPS) from continuing operations was $0.56, an increase of 12.5%. On a GAAP basis, basic EPS from continuing operations was $0.45, an increase of 30.6%.

• Double-digit reported revenue growth in three segments.

• Total accounts on file exceeded 600 million for the first time.

• Successful roll-out of an enterprise solution to support Apple Pay.

1

TSYS Reports Third Quarter 2014 Total Revenues Increased 8.1%/p.2

Conference Call

TSYS will host its quarterly conference call at 5:00 p.m. ET on Tuesday, October 28. 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

This press release contains information prepared in conformity with GAAP as well as non-GAAP information. It is management’s intent to provide non-GAAP financial information to enhance understanding of its consolidated financial information as prepared in accordance with GAAP. This non-GAAP information should be considered by the reader in addition to, but not instead of, the financial statements prepared in accordance with GAAP. Each non-GAAP financial measure and the most directly comparable GAAP financial measure are presented so as not to imply that more emphasis should be placed on the non-GAAP measure. The non-GAAP financial information presented may be determined or calculated differently by other companies.

Additional information about non-GAAP financial measures, including, but not limited to, adjusted EBITDA and adjusted EPS, and a reconciliation of those measures to the most directly comparable GAAP measures are included on pages 12 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^®.” 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, Ga., U.S.A., with local offices spread across the Americas, EMEA and Asia-Pacific. TSYS is a member of The Civic 50 and was 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.

2

TSYS Reports Third Quarter 2014 Total Revenues Increased 8.1%/p.3

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,” “potential,” “will,” “could,” and similar expressions. 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 or events 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, the risks described 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.

3

TSYS Announces Third Quarter 2014 Earnings

TSYS

Financial Highlights

(unaudited)

(in thousands, except per share data)

	Three Months Ended									Nine Months Ended
	September 30,									September 30,
							Percent									Percent
	2014			2013			Change			2014			2013			Change
Total revenues	$	616,891			570,551			8.1	%	$	1,811,774			1,481,202			22.3	%
Cost of services		407,391			377,147			8.0			1,246,763			983,143			26.8
Selling, general and administrative expenses		79,303			81,643			(2.9	)		252,866			212,408			19.0
Merger and acquisition expenses		790			7,282			(89.2	)		3,278			12,009			(72.7	)
Operating income		129,407			104,479			23.9			308,867			273,642			12.9
Nonoperating income (expenses)		(508	)		(499	)		(1.8	)		(1,731	)		(86	)		nm
Merger and acquisition expenses - bridge loan facility & other financing		(9,489	)		(9,789	)		3.1			(28,464	)		(19,466	)		(46.2	)
Income before income taxes, noncontrolling interests and equity in income of equity investments		119,410			94,191			26.8			278,672			254,090			9.7
Income taxes		39,227			30,100			30.3			94,333			77,547			21.6
Income before noncontrolling interests and equity in income of equity investments		80,183			64,091			25.1			184,339			176,543			4.4
Equity in income of equity investments, net of tax		4,135			2,792			48.1			11,831			9,357			26.4
Income from continuing operations, net of tax		84,318			66,883			26.1			196,170			185,900			5.5
Gain from discontinued operations, net of tax		880			611			44.0			51,993			1,305			nm
Net income		85,198			67,494			26.2			248,163			187,205			32.6
Net income attributable to noncontrolling interests		(1,393	)		(3,144	)		55.7			(5,151	)		(8,110	)		36.5
Net income attributable to TSYS common shareholders	$	83,805			64,350			30.2	%	$	243,012			179,095			35.7	%
Basic earnings per share:
Income from continuing operations to TSYS common shareholders*	$	0.45			0.34			30.6	%	$	1.03			0.96			7.0	%
Gain (Loss) from discontinued operations to TSYS common shareholders*		0.00			(0.00	)		nm			0.27			(0.01	)		nm
Basic earnings per share (EPS)	$	0.45			0.34			33.0	%	$	1.30			0.95			36.8	%
Diluted earnings per share:
Income from continuing operations to TSYS common shareholders*	$	0.44			0.34			30.4	%	$	1.02			0.95			6.6	%
Gain (Loss) from discontinued operations to TSYS common shareholders*		0.00			(0.00	)		nm			0.27			(0.01	)		nm
Diluted EPS	$	0.45			0.34			32.8	%	$	1.29			0.94			36.2	%
Dividends declared per share	$	0.10			0.10					$	0.30			0.30
Amounts attributable to TSYS common shareholders:
Income from continuing operations, net of tax	$	82,925			64,834			27.9	%	$	192,018			180,835			6.2	%
Gain (Loss) from discontinued operations, net of tax		880			(484	)		nm			50,994			(1,740	)		nm
Net income	$	83,805			64,350			30.2	%	$	243,012			179,095			35.7	%
Non-GAAP measures:
Adjusted EPS from continuing operations	$	0.56			0.49			12.5	%	$	1.38			1.25			10.4	%
Adjusted EBITDA	$	198,040			179,446			10.4	%	$	518,529			442,996			17.1	%

nm = not meaningful

* EPS amounts may not total due to rounding.

4

TSYS Announces Third Quarter 2014 Earnings

TSYS

Consolidated Statements of Comprehensive Income

(unaudited)

(in thousands)

	Three Months Ended					Nine Months Ended
	September 30,					September 30,
	2014			2013		2014			2013
Net income	$	85,198			67,494	$	248,163			187,205
Other comprehensive income (loss), net of tax:
Foreign currency translation adjustments as a result of discontinued operations		—			—		3,514			—
Foreign currency translation adjustments		(11,329	)		7,222		(6,121	)		(6,489	)
Postretirement healthcare plan adjustments		147			1,113		442			1,423
Unrealized (loss) gain on available-for-sale securities		(598	)		1,479		(640	)		1,479
Other comprehensive income (loss)		(11,780	)		9,814		(2,805	)		(3,587	)
Comprehensive income		73,418			77,308		245,358			183,618
Comprehensive income attributable to noncontrolling interests		1,071			3,228		5,050			6,149
Comprehensive income attributable to TSYS common shareholders	$	72,347			74,080	$	240,308			177,469

5

TSYS Announces Third Quarter 2014 Earnings

TSYS

Earnings Per Share

(unaudited)

(in thousands, except per share data)

	Three Months Ended					Three Months Ended					Nine Months Ended					Nine Months Ended
	September 30, 2014					September 30, 2013					September 30, 2014					September 30, 2013
	Common			Participating		Common			Participating		Common			Participating		Common			Participating
	Stock			Securities		Stock			Securities		Stock			Securities		Stock			Securities
Basic earnings per share:
Net income attributable to TSYS common shareholders	$	83,805					64,350				$	243,012					179,095
Less income allocated to nonvested awards		(843	)		843		(605	)		605		(2,477	)		2,477		(968	)		968
Net income allocated to common stock for EPS calculation ( a )	$	82,962			843		63,745			605	$	240,535			2,477		178,127			968
Average common shares outstanding ( b )		183,692			1,885		187,726			1,799		184,641			1,918		187,001			1,034
Average common shares and participating securities		185,577					189,525					186,559					188,035
Basic earnings per share ( a )/( b )	$	0.45			0.45		0.34			0.34	$	1.30			1.29		0.95			0.94
Diluted earnings per share:
Net income attributable to TSYS common shareholders	$	83,805					64,350				$	243,012					179,095
Less income allocated to nonvested awards		(836	)		836		(601	)		601		(2,454	)		2,454		(962	)		962
Net income allocated to common stock for EPS calculation ( c )	$	82,969			836		63,749			601	$	240,558			2,454		178,133			962
Average common shares outstanding		183,692			1,885		187,726			1,799		184,641			1,918		187,001			1,034
Increase due to assumed issuance of shares related to common equivalent shares outstanding		1,995					1,758					2,277					1,565
Average common and common equivalent shares outstanding ( d )		185,687			1,885		189,484			1,799		186,918			1,918		188,566			1,034
Average common and common equivalent shares and participating securities		187,572					191,283					188,836					189,600
Diluted earnings per share ( c )/( d )	$	0.45			0.44		0.34			0.33	$	1.29			1.28		0.94			0.93

6

TSYS Announces Third Quarter 2014 Earnings

TSYS

Segment Breakdown

(unaudited)

(in thousands)

	Three Months Ended September 30,												Nine Months Ended September 30,
							Change												Change
	2014			2013			$			%			2014			2013			$			%
Revenues before reimbursable items
North America Services	$	240,957			217,257			23,700			10.9	%	$	698,543			637,379			61,164			9.6	%
International Services		87,385			77,876			9,509			12.2			248,890			230,889			18,001			7.8
Merchant Services		115,012			113,650			1,362			1.2			327,972			335,903			(7,931	)		(2.4	)
NetSpend		114,048			103,706			10,342			10.0			363,521			103,706			259,815			nm
Intersegment revenues		(4,542	)		(3,001	)		(1,541	)		(51.3	)		(15,248	)		(9,428	)		(5,820	)		(61.7	)
Revenues before reimbursable items from external customers	$	552,860			509,488			43,372			8.5	%	$	1,623,678			1,298,449			325,229			25.0	%
Total revenues
North America Services	$	282,833			252,577			30,256			12.0	%	$	818,335			741,005			77,330			10.4	%
International Services		91,865			83,025			8,840			10.6			264,710			245,420			19,290			7.9
Merchant Services		134,117			135,616			(1,499	)		(1.1	)		384,824			404,975			(20,151	)		(5.0	)
NetSpend		114,048			103,706			10,342			10.0			363,521			103,706			259,815			nm
Intersegment revenues		(5,972	)		(4,373	)		(1,599	)		(36.6	)		(19,616	)		(13,904	)		(5,712	)		(41.1	)
Revenues from external customers	$	616,891			570,551			46,340			8.1	%	$	1,811,774			1,481,202			330,572			22.3	%
Depreciation and amortization
North America Services	$	22,173			18,764			3,409			18.2	%	$	63,377			55,060			8,317			15.1	%
International Services		9,610			9,584			26			0.3			29,176			29,734			(558	)		(1.9	)
Merchant Services		3,624			2,890			734			25.4			10,591			9,029			1,562			17.3
NetSpend		2,155			1,471			684			46.5			5,779			1,471			4,308			nm
Segment depreciation and amortization		37,562			32,709			4,853			14.8			108,923			95,294			13,629			14.3
Acquisition intangible amortization		24,210			24,731			(521	)		(2.1	)		72,805			41,142			31,663			77.0
Corporate admin and other		662			461			201			43.6			1,702			1,322			380			28.7
Total depreciation and amortization	$	62,434			57,901			4,533			7.8	%	$	183,430			137,758			45,672			33.2	%
Adjusted segment operating income
North America Services	$	92,736			84,443			8,293			9.8	%	$	251,892			234,509			17,383			7.4	%
International Services		15,976			9,528			6,448			67.7			32,274			24,082			8,192			34.0
Merchant Services		40,409			40,753			(344	)		(0.8	)		103,473			119,691			(16,218	)		(13.5	)
NetSpend		36,123			34,616			1,507			4.4			95,543			34,616			60,927			nm
Total adjusted segment operating income		185,244			169,340			15,904			9.4			483,182			412,898			70,284			17.0
Acquisition intangible amorization		(24,210	)		(24,731	)		521			2.1			(72,805	)		(41,142	)		(31,663	)		(77.0	)
NetSpend M&A operating expenses		(779	)		(7,282	)		6,503			89.3			(3,213	)		(12,009	)		8,796			73.2
Share-based compensation		(5,420	)		(9,784	)		4,364			44.6			(23,019	)		(19,587	)		(3,432	)		(17.5	)
Corporate admin and other		(25,428	)		(23,064	)		(2,364	)		(10.2	)		(75,278	)		(66,518	)		(8,760	)		(13.2	)
Operating income	$	129,407			104,479			24,928			23.9	%	$	308,867			273,642			35,225			12.9	%
Other:
Reimbursable items:
North America Services	$	41,876			35,320			6,556			18.6	%	$	119,792			103,626			16,166			15.6	%
International Services		4,480			5,149			(669	)		(13.0	)		15,820			14,531			1,289			8.9
Merchant Services		19,105			21,966			(2,861	)		(13.0	)		56,852			69,072			(12,220	)		(17.7	)
NetSpend		—			—			—			na			—			—			—			na
Intersegment revenues		(1,430	)		(1,372	)		(58	)		(4.2	)		(4,368	)		(4,476	)		108			2.4
Reimbursable items	$	64,031			61,063			2,968			4.9	%	$	188,096			182,753			5,343			2.9	%

7

TSYS Announces Third Quarter 2014 Earnings

TSYS

Segment Breakdown

(unaudited)

(in thousands)

	At						Change
	9/30/2014			9/30/2013			#			%
Other:
Volumes:
FTEs (full-time equivalents)
North America Services		4,654			4,370			284			6.5	%
International Services		2,384			2,356			28			1.2
Merchant Services		1,608			1,617			(9	)		(0.6	)
NetSpend		540			462			78			16.9
Corporate Admin and Other		584			536			48			9.0
FTEs - Continuing Operations		9,770			9,341			429			4.6	%
Discontinued Operations		—			88			(88	)		na
FTEs		9,770			9,429			341			3.6	%
	At						Change
Total assets (in thousands)	9/30/2014			12/31/2013			$			%
North America Services	$	3,324,945			3,215,333			109,612			3.4	%
International Services		351,062			417,379			(66,317	)		(15.9	)
Merchant Services		696,591			676,592			19,999			3.0
NetSpend		1,556,253			1,596,150			(39,897	)		(2.5	)
Intersegment assets		(2,208,269	)		(2,218,886	)		10,617			0.5
Total assets	$	3,720,582			3,686,568			34,014			0.9	%

	Three Months Ended September 30,										Nine Months Ended September 30,
					Change												Change
	2014		2013		Inc(Dec)			%			2014			2013			Inc(Dec)			%
North America Segment:
Accounts on File (AOF) (in millions)												541.4			461.4			80.0			17.4	%
Transactions (in millions)		2,833.6		2,395.8		437.8			18.3	%		7,857.9			6,644.2			1,213.7			18.3	%
International Segment:
AOF (in millions)												64.1			59.2			4.9			8.1	%
Transactions (in millions)		574.3		525.5		48.8			9.3	%		1,650.3			1,451.8			198.5			13.7	%
Merchant Segment:
Point-of-sale Transactions (in millions)		1,034.4		1,090.0		(55.6	)		(5.1	)%		3,061.7			3,325.2			(263.5	)		(7.9	)%
Dollar sales volume (in millions)	$	11,877.5	$	10,963.2	$	914.3			8.3	%	$	34,453.8		$	32,123.2		$	2,330.6			7.3	%
NetSpend Segment:
Gross Dollar Volume (in millions)	$	4,409.3	$	3,780.9	$	628.4			16.6	%	$	15,604.5		$	13,107.6		$	2,496.9			19.0	%
90-Day Active Cards (in thousands)												3,086.1			2,767.3			318.8			11.5	%
Direct Deposit 90-Day Active Cards (in thousands)												1,520.7			1,261.1			259.6			20.6	%
% of 90-Day Active Cards with Direct Deposit												49.3	%		45.6	%

8

TSYS Announces Third Quarter 2014 Earnings

TSYS

Balance Sheet

(unaudited)

(in thousands)

	Sep 30, 2014			Dec 31, 2013
Assets
Current assets:
Cash and cash equivalents	$	266,041			247,700
Accounts receivable, net		308,671			255,773
Deferred income tax assets		13,239			14,158
Prepaid expenses and other current assets		96,747			95,109
Current assets of discontinued operations		4,003			41,193
Total current assets		688,701			653,933
Goodwill		1,549,227			1,541,574
Other intangible assets, net		423,356			481,419
Computer software, net		365,004			363,880
Property and equipment, net		274,571			259,968
Contract acquisition costs, net		226,182			184,828
Equity investments, net		96,114			94,133
Deferred income tax assets, net		3,871			3,972
Other assets		93,556			87,146
Long-term assets of discontinued operations		—			15,715
Total assets	$	3,720,582			3,686,568
Liabilities
Current liabilities:
Accounts payable	$	54,507			33,651
Current portion of borrowings		40,684			34,257
Accrued salaries and employee benefits		29,479			38,339
Current portion of obligations under capital leases		6,359			22,662
Other current liabilities		166,362			159,170
Current liabilities of discontinued operations		4,003			9,136
Total current liabilities		301,394			297,215
Long-term borrowings, excluding current portion		1,409,999			1,428,251
Deferred income tax liabilities		191,873			228,727
Obligations under capital leases, excluding current portion		6,196			7,500
Other long-term liabilities		99,463			81,600
Long-term liabilities of discontinued operations		—			1,197
Total liabilities		2,008,925			2,044,490
Redeemable noncontrolling interest		22,197			39,652
Equity
Shareholders’ equity:
Common stock		20,278			20,279
Additional paid-in capital		165,161			165,841
Accumulated other comprehensive income, net		1,046			3,749
Treasury stock		(409,053	)		(326,996	)
Retained earnings		1,905,112			1,718,204
Total shareholders’ equity		1,682,544			1,581,077
Noncontrolling interests in consolidated subsidiaries		6,916			21,349
Total equity		1,689,460			1,602,426
Total liabilities and equity	$	3,720,582			3,686,568

9

TSYS Announces Third Quarter 2014 Earnings

TSYS

Cash Flow

(unaudited)

(in thousands)

	Nine Months Ended September 30,
	2014			2013
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income	$	248,163			187,205
Adjustments to reconcile net income to net cash provided by operating activities:
Equity in income of equity investments		(11,831	)		(9,357	)
Dividends received from equity investments		9,189			8,595
Loss on foreign currency		1,715			612
Depreciation and amortization		184,827			142,490
Amortization of debt issuance costs		1,361			6,775
Amortization of bond discount		286			131
Changes in fair value of private equity investments		(239	)		(1,227	)
Share-based compensation		23,019			19,587
Excess tax benefit from share-based compensation		(6,538	)		(2,727	)
Provisions for bad debt expense and billing adjustments		1,982			2,193
Charges for transaction processing provisions		5,081			8,545
Provision for fraud and other losses		29,923			6,398
Deferred income tax expense		(15,989	)		25,784
Loss on disposal of equipment, net		27			78
Gain on disposal of subsidiaries		(87,013	)		—
Changes in operating assets and liabilities:
Accounts receivable		(50,450	)		(6,721	)
Prepaid expenses, other current assets and other long-term assets		(10,784	)		(12,610	)
Accounts payable		10,655			(41,055	)
Accrued salaries and employee benefits		(8,462	)		(9,552	)
Other current liabilities and other long-term liabilities		65,192			(17,659	)
Net cash provided by operating activities		390,114			307,485
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchases of property and equipment, net		(55,356	)		(24,896	)
Additions to licensed computer software from vendors		(14,497	)		(34,412	)
Additions to internally developed computer software		(31,263	)		(22,519	)
Proceeds from dispositions, net of expenses paid and cash disposed		45,002			—
Cash used in acquisitions, net of cash acquired		(38,584	)		(1,314,660	)
Purchase of private equity investments		(3,290	)		(1,146	)
Additions to contract acquisition costs		(66,540	)		(36,824	)
Net cash used in investing activities		(164,528	)		(1,434,457	)
CASH FLOWS FROM FINANCING ACTIVITIES:
Principal payments on long-term borrowings and capital lease obligations		(48,682	)		(82,644	)
Proceeds from long-term borrowings		—			1,395,661
Proceeds from exercise of stock options		26,877			27,488
Excess tax benefit from share-based compensation		6,538			2,727
Repurchase of common stock under plans and tax withholding		(120,894	)		(6,267	)
Debt issuance costs		—			(13,471	)
Purchase of noncontrolling interests		(37,500	)		—
Subsidiary dividends paid to noncontrolling shareholders		(6,369	)		(5,897	)
Dividends paid on common stock		(56,159	)		(37,514	)
Net cash (used in) provided by financing activities		(236,189	)		1,280,083
CASH AND CASH EQUIVALENTS:
Effect of exchange rate changes on cash and cash equivalents		(1,586	)		(3,863	)
Net (decrease) increase in cash and cash equivalents		(12,189	)		149,248
Cash and cash equivalents at beginning of period		278,230			247,612
Cash and cash equivalents at end of period		266,041			396,860
Less cash and cash equivalents of discontinued operations at end of period		—			27,667
Cash and cash equivalents of continuing operations at end of period	$	266,041			369,193

10

TSYS Announces Third Quarter 2014 Earnings

Supplemental Information:

	Accounts on File
	Total
(in millions)	September 2014		September 2013		% Change
Consumer Credit		263.9		224.1		17.8
Retail		28.4		26.8		5.8
Total Consumer		292.3		250.9		16.5
Commercial		41.5		38.8		6.9
Other		21.2		16.9		25.3
Subtotal		355.0		306.6		15.8
Prepaid/Stored Value		125.1		110.7		13.0
Government Services		66.7		61.6		8.1
Commercial Card Single Use		58.7		41.7		41.0
Total AOF		605.5		520.6		16.3

Growth in Accounts on File (in millions):

	September 2013 to September 2014			September 2012 to September 2013
Beginning balance		520.6			466.3
Change in accounts on file due to:
Internal growth of existing clients		39.6			36.5
New clients		76.0			63.8
Purges/Sales		(30.3	)		(45.4	)
Deconversions		(0.4	)		(0.6	)
Ending balance		605.5			520.6

11

TSYS Announces Third Quarter 2014 Earnings

Reconciliation of GAAP to Non-GAAP Financial Measures

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 third quarter 2014 financial results using the previous year’s foreign currency exchange rates. On a full year constant currency basis, TSYS’ total revenues grew 21.1% as compared to a reported GAAP increase of 22.3%.

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 EPS.

The tax rate used in the calculation of adjusted EPS for the quarter and year is equal to an estimate of our annual pre-discrete effective tax rate on GAAP income. This effective rate is estimated annually and may be adjusted during the year to take into account events or trends that materially impact the effective tax rate including, but not limited to, significant changes resulting from tax legislation, material changes in the mix of revenues and expenses by entity and other significant events.

The schedule also provides a reconciliation of net income, adjusted for income from discontinued operations, 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 potential 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.

12

TSYS Announces Third Quarter 2014 Earnings

Reconciliation of GAAP to Non-GAAP

Constant Currency Comparison

(unaudited)

(in thousands)

	Three Months Ended September 30,							Nine Months Ended September 30,
					Percent							Percent
	2014		2013		Change			2014		2013		Change
Consolidated
Constant currency (1)	$	610,554		570,551		7.0	%	$	1,793,838		1,481,202		21.1	%
Foreign currency (2)		6,337		—					17,936		—
Total revenues	$	616,891		570,551		8.1	%	$	1,811,774		1,481,202		22.3	%
Constant currency (1)	$	546,782		509,488		7.3	%	$	1,606,786		1,298,449		23.7	%
Foreign currency (2)		6,078		—					16,892		—
Total revenues before reimbursable items	$	552,860		509,488		8.5	%	$	1,623,678		1,298,449		25.0	%
Constant currency (1)	$	126,327		104,479		20.9	%	$	299,860		273,642		9.6	%
Foreign currency (2)		3,080		—					9,007		—
Operating income	$	129,407		104,479		23.9	%	$	308,867		273,642		12.9	%
International Services
Constant currency (1)	$	85,506		83,025		3.0	%	$	246,940		245,420		0.6	%
Foreign currency (2)		6,359		—					17,770		—
Total revenues	$	91,865		83,025		10.6	%	$	264,710		245,420		7.9	%

(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.

Revenues Before Reimbursable Items

(unaudited)

(in thousands)

	Three Months Ended September 30,							Nine Months Ended September 30,
					Percent							Percent
	2014		2013		Change			2014		2013		Change
Total revenues	$	616,891		570,551		8.1	%	$	1,811,774		1,481,202		22.3	%
Reimbursable items		64,031		61,063		4.9			188,096		182,753		2.9
Revenues before reimbursable items	$	552,860		509,488		8.5	%	$	1,623,678		1,298,449		25.0	%

13

TSYS Announces Third Quarter 2014 Earnings

Reconciliation of GAAP to Non-GAAP

Adjusted Earnings per Share

(unaudited)

(in thousands, except per share data)

	Three Months Ended September 30,							Nine Months Ended September 30,
					Percent							Percent
	2014		2013		Change			2014		2013		Change
Income from continuing operations attributable to TSYS common shareholders	$	82,925		64,834		27.9	%	$	192,018		180,835		6.2	%
Adjust for amounts attributable to TSYS common shareholders:
Add: Acquisition intangible amortization, net of taxes	$	15,762		16,595		(5.0	)%		47,374		27,134		74.6	%
Add: Share-based compensation, net of taxes		3,573		6,706		(46.7	)		15,174		13,425		13.0
Add: NetSpend M&A expenses, net of taxes*		786		5,424		(85.5	)		3,111		13,934		(77.7	)
Adjusted earnings	$	103,046		93,559		10.1	%	$	257,677		235,328		9.5	%
Basic EPS - Income from continuing operations attributable to TSYS common shareholders
As reported (GAAP)	$	0.45		0.34		30.6	%	$	1.03		0.96		7.0	%
Adjust for amounts attributable to TSYS common shareholders:
Add: Acquisition intangible amortization, net of taxes		0.08		0.09		(3.1	)		0.25		0.14		76.0
Add: Share-based compensation, net of taxes		0.02		0.04		(45.5	)		0.08		0.07		13.9
Add: NetSpend M&A expenses, net of taxes*		0.00		0.03		(85.3	)		0.02		0.07		(77.5	)
Adjusted EPS **	$	0.56		0.49		12.5	%	$	1.38		1.25		10.4	%
Average common shares and participating securities		185,577		189,525					186,559		188,035

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

** Adjusted EPS amounts may not total due to rounding.

Adjusted EBITDA

(unaudited)

(in thousands)

	Three Months Ended September 30,									Nine Months Ended September 30,
							Percent									Percent
	2014			2013			Change			2014			2013			Change
Net income	$	85,198			67,494			26.2	%	$	248,163			187,205			32.6	%
Adjust for:
Deduct: Income from discontinued operations		(880	)		(611	)		(44.0	)		(51,993	)		(1,305	)		nm
Deduct: Equity in income of equity investments		(4,135	)		(2,792	)		(48.1	)		(11,831	)		(9,357	)		(26.4	)
Add: Income taxes		39,227			30,100			30.3			94,333			77,547			21.6
Add: Nonoperating expense		9,997			10,288			(2.8	)		30,195			19,552			54.4
Add: Depreciation and amortization		62,434			57,901			7.8			183,430			137,758			33.2
EBITDA	$	191,841			162,380			18.1	%	$	492,297			411,400			19.7	%
Adjust for:
Add: Share-based compensation		5,420			9,784			(44.6	)		23,019			19,587			17.5
Add: NetSpend M&A operating expenses*		779			7,282			(89.3	)		3,213			12,009			(73.2	)
Adjusted EBITDA	$	198,040			179,446			10.4	%	$	518,529			442,996			17.1	%

nm = not meaningful

* Excludes share-based compensation

14

TSYS Announces Third Quarter 2014 Earnings

Reconciliation of GAAP to Non-GAAP

Segment Operating Margin and Consolidated Adjusted Operating Margin

(unaudited)

(in thousands)

	Three Months Ended September 30, 2014									Three Months Ended September 30, 2013
	Adjusted Segment			Revenues before			Adjusted			Adjusted Segment			Revenues before			Adjusted
	Operating Income			Reimbursable Items			Operating Margin			Operating Income			Reimbursable Items			Operating Margin
North America Services	$	92,736			240,957			38.49	%	$	84,443			217,257			38.87	%
International Services		15,976			87,385			18.28			9,528			77,876			12.23
Merchant Services		40,409			115,012			35.13			40,753			113,650			35.86
NetSpend		36,123			114,048			31.67			34,616			103,706			33.38
Intersegment		—			(4,542	)					—			(3,001	)
Corporate admin and other		(25,428	)		—						(23,064	)		—
Adjusted operating margin	$	159,816			552,860			28.91	%	$	146,276			509,488			28.71	%
Acquisition intangible amortization		(24,210	)								(24,731	)
NetSpend M&A operating expenses		(779	)								(7,282	)
Share-based compensation		(5,420	)								(9,784	)
Operating income and margin (US GAAP)	$	129,407			552,860			23.41	%	$	104,479			509,488			20.51	%
	Nine Months Ended September 30, 2014									Nine Months Ended September 30, 2013
	Adjusted Segment			Revenues before			Adjusted			Adjusted Segment			Revenues before			Adjusted
	Operating Income			Reimbursable Items			Operating Margin			Operating Income			Reimbursable Items			Operating Margin
North America Services	$	251,892			698,543			36.06	%	$	234,509			637,379			36.79	%
International Services		32,274			248,890			12.97			24,082			230,889			10.43
Merchant Services		103,473			327,972			31.55			119,691			335,903			35.63
NetSpend		95,543			363,521			26.28			34,616			103,706			33.38
Intersegment		—			(15,248	)					—			(9,428	)
Corporate admin and other		(75,278	)		—						(66,518	)		—
Adjusted operating margin	$	407,904			1,623,678			25.12	%	$	346,380			1,298,449			26.68	%
Acquisition intangible amortization		(72,805	)								(41,142	)
NetSpend M&A operating expenses		(3,213	)								(12,009	)
Share-based compensation		(23,019	)								(19,587	)
Operating income and margin (US GAAP)	$	308,867			1,623,678			19.02	%	$	273,642			1,298,449			21.07	%

15

EX-99.2

2014 Third Quarter and YTD Results

October 28, 2014

©2014

Total

System

Services,

Inc.®

Proprietary.

All

rights

reserved

worldwide.

Exhibit 99.2

Forward-Looking Statements

2

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,”

“potential”, “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

2013 Annual Report on Form 10-K.  TSYS does not assume any obligation

to update any forward-looking statements as a result of new information,

future developments or otherwise.

©2014 Total System Services, Inc.® Proprietary. All rights reserved worldwide.

©2014 Total System Services, Inc.® Proprietary. All rights reserved worldwide.

Use of Non-GAAP Financial Measures

3

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, adjusted earnings per share,

adjusted

segment operating income and adjusted segment operating margin. The most

comparable GAAP measures to these measures are revenues; operating

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

earnings per share, operating income and operating margin, 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.

Troy Woods

President & Chief Executive Officer

©2014

Total

System

Services,

Inc.®

Proprietary.

All

rights

reserved

worldwide.

Paul Todd

Chief Financial Officer

©2014

Total

System

Services,

Inc.®

Proprietary.

All

rights

reserved

worldwide.

©2014 Total System Services, Inc.® Proprietary. All rights reserved worldwide.

3Q 2014 North America Segment Highlights

6

($ in millions)

(*) Revenues Before Reimbursable Items

($ in millions)

1.9%

0.8%

4.4%

4.5%

6.8%

Adjusted Segment Operating Income

Operating Margin*

(1)

Includes Credit, Debit,

Retail, Prepaid & Loyalty

(2)

Includes Healthcare

9.1%

Largest Quarter of Segment Revenue in

History, Excluding Termination Fees

Double Digit YOY Revenue Growth

–

First Time Since 2006

Revenue Growth Benefiting from Conversions

8.7%

10.9%

4Q12

1Q13

2Q13

3Q13

4Q13

1Q14

2Q14

3Q14

4Q12

1Q13

2Q13

3Q13

4Q13

1Q14

2Q14

3Q14

4%

Consumer (1)

Commercial (2)

Other

73%

23%

$81.2

$68.7

$81.3

$84.4

$87.1

$74.6

$84.6

$92.7

38.0%

33.4%

37.9%

38.9%

39.0%

33.2%

36.3%

38.5%

$213.6

$205.6

$214.5

$217.3

$223.3

$224.4

$233.2

$241.0

Segment

Revenue*

YOY Growth %

Segment Revenue by Line of Business*

©2014 Total System Services, Inc.® Proprietary. All rights reserved worldwide.

3Q 2014 North America Segment Highlights

7

(*)

Growth

Excluding

Prepaid,

Government

Services

and

Single

Use

Accounts

*

(in millions)

(in millions)

5.5%

5.2%

6.3%

16.2%

16.5%

20.9%

16.9%

11.2%

11.6%

13.4%

12.7%

7.8%

11.5%

17.6%

13.4%

15.6%

17.2%

17.1%

Five Straight Quarters of Double Digit Growth in Traditional Accounts on File*

Over 10M Accounts Converted in 3Q14

Largest Quarter of Transaction Volume in History at 2.8B

Same Client Transactions up 12.6%

18.5%

19.1%

20.7%

17.4%

18.1%

18.3%

424.8

422.8

430.7

461.4

481.9

495.5

510.3

541.4

Accounts on File

YOY Growth %

4Q12

1Q13

2Q13

3Q13

4Q13

1Q14

2Q14

3Q14

2,194.7

2,013.4

2,235.0

2,395.8

2,488.2

2,327.6

2,696.7

2,833.6

4Q12

1Q13

2Q13

3Q13

4Q13

1Q14

2Q14

3Q14

Transaction Volume

YOY Growth %

Adjusted Segment Operating Income

Operating Margin*

3Q 2014 International Segment Highlights

8

($ in millions)

Reported

Constant

Currency

(*) Revenues Before Reimbursable Items

($ in millions)

1.1%

(2.6%)

(4.0%)`

0.7%

0.1%

(0.9%)

3.1%

9.0%

8.6%

86%

0.5%

(4.6%)

Revenue $87.4M* –

Up 12.2%

Up 4.4% on Constant Currency

$6.1M of Currency Benefit

Positive Revenue Growth in All Regions

Margin Improvement Continues

(1.0%)

10.6%

1.8%

12.2%

4.4%

©2014 Total System Services, Inc.® Proprietary. All rights reserved worldwide.

8.4%

9.0%

10.0%

12.2%

19.9%

5.9%

13.9%

18.3%

Segment Revenue by Region

QTD

Europe

MEA

Rest Of World

7%

7%

$7.0

$6.9

$7.7

$9.5

$18.0

$4.6

$11.7

$16.0

4Q12

1Q13

2Q13

3Q13

4Q13

1Q14

2Q14

3Q14

$83.1

$76.4

$76.6

$77.9

$90.6

$76.8

$84.7

$87.4

4Q12

1Q13

2Q13

3Q13

4Q13

1Q14

2Q14

3Q14

Segment

Revenue*

YOY Growth %

©2014 Total System Services, Inc.® Proprietary. All rights reserved worldwide.

3Q 2014 International Segment Highlights

9

(in millions)

(in millions)

19.5%

14.2%

23.3%

26.7%

17.3%

19.3%

AOF Grew 4.9M YOY Predominately Organic

Transactions Grew 48.9M, or 9.3% YOY

Same Client Transactions Grew 9.7%

13.4%

4.1%

3.7%

9.9%

12.1%

8.5%

8.9%

7.5%

8.1%

9.3%

Accounts on File

YOY Growth %

Transaction Volume

YOY Growth %

54.5

55.7

58.0

59.2

4Q12

1Q13

2Q13

3Q13

4Q13

1Q14

2Q14

3Q14

59.1

60.7

62.3

64.1

4Q12

1Q13

2Q13

3Q13

4Q13

1Q14

2Q14

3Q14

473.6

434.0

492.4

525.5

555.6

517.9

558.1

574.3

©2014 Total System Services, Inc.® Proprietary. All rights reserved worldwide.

Revenues Before Reimbursables Increased 1.2%

Direct Up 4% with Continued Focus on Growth Initiatives

Indirect Down (2)% But Exceeding Expectations

Second Quarter of Improved Operating Margin

3Q 2014 Merchant Segment Highlights

10

(*) Revenues Before Reimbursable Items

($ in millions)

5.5%

11.1%

15.6%

5.4%

4.3%

($ in millions)

(4.3%)

(4.1%)

1.2%

Segment Revenue by Mix*

QTD

Direct

Indirect

43%

57%

Segment

Revenue*

YOY Growth

%

$105.9

$109.3

$113.0

$113.6

$110.4

$104.6

$108.3

$115.0

4Q12

1Q13

2Q13

3Q13

4Q13

1Q14

2Q14

3Q14

$37.7

$37.6

$41.3

$40.8

$36.0

$30.2

$32.9

$40.4

35.6%

34.4%

36.6%

35.9%

32.6%

28.8%

30.4%

35.1%

4Q12

1Q13

2Q13

3Q13

4Q13

1Q14

2Q14

3Q14

Adjusted Segment Operating Income

Operating Margin*

©2014 Total System Services, Inc.® Proprietary. All rights reserved worldwide.

11

3Q 2014 Merchant Segment Highlights

(*) Excludes Managed Accounts

Segment Revenue by LOB

YOY Growth %

($ in billions)

32.2%

35.3%

40.6%

22.0%

11.1%

(12%)

45%

55%

26%

22%

(11%)

(12%)

(12%)

($ in millions)

4%

(14%)

9.3%

POS Transactions Increased 4.3%, Excluding Deconverted Accounts

SBS Sales Volume Up 10.0%

Value Added Products Key Component Driving Revenue Growth

8.2%

1%

(10%)

4%

(2%)

10.0%

$4.7

$4.8

$5.3

$5.3

$5.2

$5.3

$5.8

$5.9

4Q12

1Q13

2Q13

3Q13

4Q13

1Q14

2Q14

3Q14

SBS

Sales Volume

YOY Growth %

$55

$51

$52

$51

$51

$48

$45

$46

$50

$57

$62

$63

$62

$59

$62

$65

4Q12

1Q13

2Q13

3Q13

4Q13

1Q14

2Q14

3Q14

Indirect

Direct

©2014 Total System Services, Inc.® Proprietary. All rights reserved worldwide.

Adjusted Segment Operating Income*

Segment Revenue

YOY Growth %

3Q 2014 NetSpend Segment Highlights

12

($ in millions)

10%

44%

33%

13%

Revenue $114.0M –

Up 10.0%

Added 4k Distributing Locations and

Employers Bringing the Total to Over 80k

Launched Western Union Both in Retail and

Direct Channels

Rolled Out Paychex to Entire Salesforce

($ in millions)

(*NOTE: Periods prior to the acquisition by TSYS have been restated )

$89.7

$117.3

$104.9

$103.7

$104.1

$132.6

$116.8

$114.0

16.9%

28.3%

22.9%

22.2%

16.1%

13.1%

11.4%

10.0%

4Q12

1Q13

2Q13

3Q13

4Q13

1Q14

2Q14

3Q14

Segment Revenue by Channel

QTD

Partner

Retail

Direct

Paycard

$23.9

$28.0

$29.3

$34.6

$31.7

$28.7

$30.7

$36.1

26.7%

23.9%

27.9%

33.4%

30.5%

21.7%

26.3%

31.7%

4Q12

1Q13

2Q13

3Q13

4Q13

1Q14

2Q14

3Q14

Operating Margin*

©2014 Total System Services, Inc.® Proprietary. All rights reserved worldwide.

3Q 2014 NetSpend Segment Highlights

13

Gross Dollar Volume

YOY Growth %

Direct Deposit Active Cards

YOY Growth %

Direct Deposit Active Cards up 20.6%

Gross Dollar Volume (GDV) up 16.6%

Double Digit Growth in Direct Deposit Active Cards Across All Channels

(in thousands)

($ in millions)

25.1%

66.7%

42.3%

23.8%

22.1%

18.2%

42.8%

30.1%

22.4%

21.2%

17.6%

20.6%

1,081.6

1,707.9

1,361.4

1,261.1

1,321.1

2,070.3

1,600.7

1,520.7

4Q12

1Q13

2Q13

3Q13

4Q13

1Q14

2Q14

3Q14

$3,265.4

$5,378.7

$3,947.9

$3,780.9

$3,967.6

$6,567.2

$4,628.0

$4,409.3

4Q12

1Q13

2Q13

3Q13

4Q13

1Q14

2Q14

3Q14

21.5%

22.1%

17.2%

16.6%

©2014 Total System Services, Inc.® Proprietary. All rights reserved worldwide.

Consolidated Selected Financial Highlights

14

$616,891

$570,551

8.1%

Total Revenues

$1,811,774

$1,481,202

22.3%

552,860

509,488

8.5

Revenues Before Reimbursable Items

1,623,678

1,298,449

25.0

198,040

179,446

10.4

Adjusted EBITDA*

518,529

442,996

17.1

$0.56

$0.49

12.5

Adjusted EPS* from Continuing

Operations

$1.38

$1.25

10.4

(in thousands, except per share data)

3

rd

Qtr

2014

3

rd

Qtr

2013

Percent

Change

YTD

2014

YTD

2013

Percent

Change

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

©2014 Total System Services, Inc.® Proprietary. All rights reserved worldwide.

Revenues before

Reimbursable

Items

Adjusted

Operating Margin

Adjusted

Segment

Operating Income

North America

$92,736

$240,957

38.49%

International

15,976

87,385

18.28%

Merchant

40,409

115,012

35.13%

NetSpend

36,123

114,048

31.67%

Eliminations

--

(4,542)

Corporate administration excluding stock comp

(25,428)

--

Adjusted operating margin

$159,816

$552,860

28.91%

Amortization of acquisition intangibles

(24,210)

NetSpend M&A expenses

(779)

Stock-based compensation

(5,420)

Operating income (US GAAP)

$129,407

Segment Operating Margin and Consolidated

Adjusted Operating Margin

(in thousands)

15

Three Months Ended September 30, 2014

©2014 Total System Services, Inc.® Proprietary. All rights reserved worldwide.

Revenues before

Reimbursable

Items

Adjusted

Operating Margin

Adjusted

Segment

Operating Income

North America

$251,892

$698,543

36.06%

International

32,274

248,890

12.97%

Merchant

103,473

327,972

31.55%

NetSpend

95,543

363,521

26.28%

Eliminations

--

(15,248)

Corporate administration excluding stock comp

(75,278)

--

Adjusted operating margin

$407,904

$1,623,678

25.12%

Amortization of acquisition intangibles

(72,805)

NetSpend M&A expenses

(3,213)

Stock-based compensation

(23,019)

Operating income (US GAAP)

$308,867

Segment Operating Margin and Consolidated

Adjusted Operating Margin

(in thousands)

16

Nine Months Ended September 30, 2014

©2014 Total System Services, Inc.® Proprietary. All rights reserved worldwide.

Rollforward of Quarterly Cash Balance

$200

$500

$100

$0

$300

Operating

Activities

$151

Cap Ex

($62)

Debt Pmts

($14)

Dividends

($19)

Other

($2)

Ending

Balance

$266

(in millions)

6/30/2014

9/30/2014

17

$400

Acquisition

($39)

Beginning

Balance

$251

©2014 Total System Services, Inc.® Proprietary. All rights reserved worldwide.

Cash Flow Strength:

2014 TTM Consolidated Financial Highlights

18

TTM = Trailing Twelve Months

(in millions)

$700

$535

$292

$318

$266

$0

$75

$150

$225

$300

$375

$450

$525

$600

$675

$750

Adjusted EBITDA

Cash flow from operations

Free cash flow

Net income

Ending cash

Q&A

©2014 Total System Services, Inc.® Proprietary. All rights reserved worldwide.

Appendix

©2014

Total

System

Services,

Inc.®

Proprietary.

All

rights

reserved

worldwide.

©2014 Total System Services, Inc.® Proprietary. All rights reserved worldwide.

Appendix: Non-GAAP Items –

Adjusted EBITDA

and Adjusted 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 NetSpend merger & acquisition expenses.

•

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

net income excluding the after-tax impact of stock-based compensation expenses, amortization of acquisition intangibles, and NetSpend

merger & acquisition expenses.

•

Adjusted segment operating income is operating income at the segment level adjusted for amortization of acquisition intangibles.

•

Adjusted segment operating margin is adjusted segment operating income divided by segment revenues before reimbursable 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

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 EPS as supplemental measures to evaluate the overall operating performance

of companies.

•

By comparing the Company’s adjusted EBITDA and adjusted 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.

21

©2014 Total System Services, Inc.® Proprietary. All rights reserved worldwide.

Consumer Credit

263.9

224.1

17.8

263.9

246.5

7.1

Retail

28.4

26.8

5.8

28.4

27.9

1.5

Total Consumer

292.3

250.9

16.5

292.3

274.4

6.5

Commercial

41.5

38.8

6.9

41.5

40.4

2.8

Other

21.2

16.9

25.3

21.2

20.4

4.0

Subtotal

355.0

306.6

15.8

355.0

335.2

5.9

Prepaid*/

Stored Value

125.1

110.7

13.0

125.1

117.7

6.4

Government

Services

66.7

61.6

8.1

66.7

65.6

1.5

Commercial Card

Single Use

58.7

41.7

41.0

58.7

54.2

8.4

Total AOF

605.5

520.6

16.3

605.5

572.7

5.7

Appendix: Accounts on File Portfolio Summary

(in millions)

22

(* -

Prepaid does not include NetSpend accounts)

Sep

2014

Sep

2013

%

Change

Sep

2014

Jun

2014

%

Change

©2014 Total System Services, Inc.® Proprietary. All rights reserved worldwide.

Appendix: Non-GAAP Reconciliation –

Revenues Before Reimbursable Items

(in thousands)

23

Three Months Ended

9/30/14

9/30/14

Nine Months Ended

9/30/13

9/30/13

Total Revenues

$616,891

$570,551

$1,811,774

$1,481,202

Reimbursable Items

64,031

61,063

188,096

182,753

Revenues Before Reimbursable Items

$552,860

$509,488

$1,623,678

$1,298,449

©2014 Total System Services, Inc.® Proprietary. All rights reserved worldwide.

Appendix:

Non-GAAP

Reconciliation

–

Adjusted

Segment Operating Income and Operating Margin

Three Months Ended                                   Nine Months Ended

Operating income

$129,407

$104,479

$308,867

$273,642

Add: Acquisition intangible amort

24,210

24,731

72,805

41,142

Add: Corporate admin and other

31,627

40,130

101,510

98,114

Total segment adjusted operating income

$185,244

$169,340

$483,182

$412,898

By segment: North America services (a)

$92,736

$84,443

$251,892

$234,509

International services (b)

$15,976

$9,528

$32,274

$24,082

Merchant services (c)

$40,409

$40,753

$103,473

$119,691

NetSpend (d)

$36,123

$34,616

$95,543

$34,616

Total revenues

$616,891

$570,551

$1,811,774

$1,481,202

Reimbursable items

(64,031)

(61,063)

(188,096)

(182,753)

Total segment revenues before reimbursable items

$552,860

$509,488

$1,623,678

$1,298,449

Intersegment revenues

4,542

3,001

15,248

9,428

By segment: North America services (e)

$240,957

$217,257

$698,543

$637,379

International services (f)

$87,385

$77,876

$248,890

$230,889

Merchant services (g)

$115,012

$113,650

$327,972

$335,903

NetSpend (h)

$114,048

$103,706

$363,521

$103,706

Adjusted segment operating margin:

North America services (a) / (e)

38.49%

38.87%

36.06%

36.79%

International services (b) / (f)

18.28%

12.23%

12.97%

10.43%

Merchant services (c) / (g)

35.13%

35.86%

31.55%

35.63%

NetSpend (d) / (h)

31.67%

33.38%

26.28%

33.38%

(in thousands)

24

9/30/13

9/30/14

9/30/13

9/30/14

©2014 Total System Services, Inc.® Proprietary. All rights reserved worldwide.

Nine

Months Ended

9/30/14        9/30/13

Percentage

Change

Three

Months Ended

9/30/14          9/30/13

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)

$610,554

$570,551

7.0%

$1,793,838

$1,481,202

21.1%

Foreign Currency (2)

6,337

---

17,936

---

Total Revenues

$616,891

$570,551

8.1%

$1,811,774

$1,481,202

22.3%

International Services:

Constant Currency (1)

$85,506

$83,025

3.0%

$246,940

$245,420

0.6%

Foreign Currency (2)

6,359

---

17,770

---

Total Revenues

$91,865

$83,025

10.6%

$264,710

$245,420

7.9%

25

©2014 Total System Services, Inc.® Proprietary. All rights reserved worldwide.

Nine

Months Ended

9/30/14        9/30/13

Percentage

Change

Three

Months Ended

9/30/14       9/30/13

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)

26

Consolidated:

Constant Currency (1)

$546,782

$509,488

7.3%

$1,606,786

$1,298,449

23.7%

Foreign Currency (2)

6,078

---

16,892

---

Revenues before

reimbursable items

$552,860

$509,488

8.5%

$1,623,678

$1,298,449

25.0%

International Services:

Constant Currency (1)

$81,284

$77,876

4.4%

$232,166

$230,889

0.6%

Foreign Currency (2)

6,101

---

16,725

---

Revenues before

reimbursable items

$87,385

$77,876

12.2%

$248,890

$230,889

7.8%

©2014 Total System Services, Inc.® Proprietary. All rights reserved worldwide.

Appendix: Non-GAAP Reconciliation –

EBITDA and Adjusted EBITDA

(in thousands)

27

Three Months Ended

Nine Months Ended

Sep

2014

Sep

2013

Sep

2014

Sep

2013

Net income :

As reported (GAAP) (a)

$85,198

$67,494

$248,163

$187,205

Adjusted for:

Deduct: Income from discontinued

operations

(880)

(611)

(51,993)

(1,305)

Deduct: Equity in Income of Equity

Investments

(4,135)

(2,792)

(11,831)

(9,357)

Add: Income Taxes

39,227

30,100

94,333

77,547

Add: Nonoperating expenses

9,997

10,288

30,195

19,552

Add: Depreciation and

amortization

62,434

57,901

183,430

137,758

EBITDA

$191,841

$162,380

$492,297

$411,400

Adjust for:

Add: Share-based compensation

5,420

9,784

23,019

19,587

Add: NetSpend  M&A expenses

779

7,282

3,213

12,009

Adjusted EBITDA

$198,040

$179,446

$518,529

$442,996

©2014 Total System Services, Inc.® Proprietary. All rights reserved worldwide.

Appendix: Non-GAAP Reconciliation –

Adjusted EPS

(in thousands)

28

Three Months Ended

Nine Months Ended

Sep

2014

Sep

2013

Sep

2014

Sep

2013

Income from continuing operations available to

TSYS Common Shareholders:

As reported (GAAP) (a)

$82,925

$64,834

$192,018

$180,835

Adjusted for amounts attributable to TSYS

common shareholders (net of taxes):

Acquisition intangible amortization

15,762

16,595

47,374

27,134

Share-based compensation

3,573

6,706

15,174

13,425

NetSpend M&A expenses

786

5,424

3,111

13,934

Adjusted earnings (b)

$103,046

$93,559

$257,677

$235,328

Average common shares outstanding and

participating securities (c)

185,577

189,525

186,559

188,035

Basic EPS Available to TSYS Common

Shareholders (a) / (c)

$0.45

$0.34

$1.03

$0.96

Adjusted EPS Available to TSYS Common

Shareholders (b) / (c)

$0.56

$0.49

$1.38

$1.25

©2014 Total System Services, Inc.® Proprietary. All rights reserved worldwide.

Appendix: Non-GAAP Reconciliation –

EBITDA and Adjusted EBITDA

Trailing

Twelve Months

Ended

9/30/2014

Net Income

$317,556

Adjusted for:

Deduct: Discontinued operations

(52,744)

Deduct: Equity in Income of Equity Investments

(15,522)

Add: Income Taxes

127,767

Add: Nonoperating expense

40,668

Add: Depreciation and Amortization

244,698

EBITDA

$662,423

Adjust for: Share-based compensation

32,364

NetSpend M&A Operating Expenses*

4,838

Adjusted EBITDA

$699,625

(in thousands)

29

* Excludes share-based compensation

©2014 Total System Services, Inc.® Proprietary. All rights reserved worldwide.

Appendix: Non-GAAP Reconciliation –

Free Cash Flow

Trailing

Twelve Months

Ended

9/30/2014

(in thousands)

30

Cash Flows from Operating Activities

$535,028

Less:

Purchase of Property and Equipment

(71,057)

Additions to Licensed Computer Software from Vendors

(44,814)

Additions to Internally Developed Computer Software

(41,250)

Additions to Contract Acquisition Costs

(85,682)

Free Cash Flow

$292,225