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 28, 2015

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 28, 2015, Total System Services, Inc. (“Registrant”) issued a press release announcing financial results for the second quarter ended June 30, 2015. 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 28, 2015, Registrant will hold an investor conference call and webcast to discuss its financial results for the second quarter ended June 30, 2015. 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 28, 2015
99.2	Registrant’s presentation dated July 28, 2015

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 28, 2015	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 Adjusted EPS Grew 29.0%

Raises 2015 Adjusted EPS Guidance Growth to 15-17%

COLUMBUS, Ga., July 28, 2015 — TSYS (NYSE: TSS) today reported results for the second quarter and year to date.

“For the second quarter in a row, we exceeded our expectations that resulted in another outstanding quarter and year-to-date performance. Organic revenue grew 13.7% year-to-date as we continue to deliver exceptional performance across our key metrics,” said M. Troy Woods, chairman, president and chief executive officer of TSYS.

“As a result of our great performance during the first half of the year, we are raising our revenues before reimbursables guidance range to 10-12%, up from the previous range of 8-10%, and our adjusted earnings per share (EPS) guidance range to 15-17%, up from the previous range of 12-14%,” said Woods.

Highlights for the second quarter of 2015 include:

• Adjusted EPS from continuing operations were $0.58, an increase of 29.0%. On a GAAP basis, basic EPS from continuing operations were $0.45, an increase of 40.5%.

• Income from continuing operations attributable to TSYS’ shareholders was $82.8 million, an increase of 38.6%.

• Adjusted EBITDA was $206.5 million, an increase of 20.9%.

• Total revenues for the quarter were $692.7 million, an increase of 15.1%. Revenues before reimbursable items were $622.1 million, an increase of 15.6%.

• Adjusted operating margin was 26.6%. GAAP operating margin was 18.9%.

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TSYS Reports Second Quarter Adjusted EPS Grew 29.0%

Highlights for the first six months of 2015 include:

• Adjusted EPS from continuing operations were $1.11, an increase of 34.6%. On a GAAP basis, basic EPS from continuing operations were $0.87, an increase of 49.6%.

• Income from continuing operations attributable to TSYS’ shareholders was $160.6 million, an increase of 47.2%.

• Adjusted EBITDA was $400.0 million, an increase of 24.8%.

• Total revenues were $1.4 billion, an increase of 13.4%. Revenues before reimbursable items were $1.2 billion, an increase of 13.7%.

• Adjusted operating margin was 26.3%. GAAP operating margin was 18.7%.

“During the quarter, we purchased 700,000 shares of our stock under our share repurchase program bringing our year to date total to 2.2 million shares with a total spend of $83.5 million. Coupled with our dividends of $36.9 million, we returned $120.4 million to our shareholders, which was 74.2% of available year-to-date free cash flow,” said Woods.

	2015 Revised Financial Outlook
	Range (in millions, except per share amounts)	Percent Change
Total revenues	$2,667 to $2,716	9% to 11%
Revenues before reimbursable items	$2,412 to $2,456	10% to 12%
Adjusted EPS attributable to TSYS common shareholders from continuing operations*	$  2.25 to $  2.29	15% to 17%
* Average Basic Weighted Shares	184

* Note: The impact of any future share repurchases is not included.

Conference Call

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

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TSYS Reports Second Quarter Adjusted EPS Grew 29.0%

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 9 to 12 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 has been named one of the 2015 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.

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TSYS Reports Second Quarter Adjusted EPS Grew 29.0%

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 forward-looking statements include, among others, statements regarding TSYS’ revised earnings guidance for 2015 total revenues, revenues before reimbursable items and adjusted 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 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 material breach of security of any of TSYS’ systems; TSYS’ ability to integrate acquisitions and achieve the anticipated growth opportunities and other benefits of the acquisitions; the effect of current domestic and worldwide economic conditions; risks associated with foreign operations, including adverse developments with respect to foreign currency exchange rates; expenses are incurred associated with the signing of a significant client; TSYS does not convert clients’ portfolios as scheduled; the deconversion of a significant client; changes occur in laws, rules, regulations, credit card association rules, prepaid industry rules or other industry standards affecting TSYS and our clients that may result in costly new compliance burdens on TSYS and our clients and lead to a decrease in the volume and/or number of transactions processed or limit the types and amounts of fees that can be charged to customers; the costs and effects of litigation, investigations or similar matters or adverse facts and developments relating thereto; adverse developments with respect to the payment card industry in general, including a decline in the use of cards as a payment mechanism; and growth rates of TSYS’ existing clients are lower than anticipated or attrition rates of existing clients are higher than anticipated. Additional risks and other factors that could cause actual results or events 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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TSYS Announces Second Quarter 2015 Earnings

Page 5 of 12

TSYS

Financial Highlights

(unaudited)

(in thousands, except per share data)

	Three Months Ended June 30,									Six Months Ended June 30,
	2015			2014			Percent Change			2015			2014			Percent Change
Total revenues	$	692,652			602,036			15.1	%	$	1,354,808			1,194,883			13.4	%
Cost of services		459,941			416,489			10.4			909,646			839,372			8.4
Selling, general and administrative expenses		102,109			86,784			17.7			192,064			176,051			9.1
Total expenses		562,050			503,273			11.7			1,101,710			1,015,423			8.5
Operating income		130,602			98,763			32.2			253,098			179,460			41.0
Nonoperating expenses		(10,209	)		(10,385	)		1.7			(19,418	)		(20,198	)		3.9
Income before income taxes, noncontrolling interests and equity in income of equity investments		120,393			88,378			36.2			233,680			159,262			46.7
Income taxes		41,597			30,771			35.2			81,379			55,106			47.7
Income before noncontrolling interests and equity in income of equity investments		78,796			57,607			36.8			152,301			104,156			46.2
Equity in income of equity investments, net of tax		4,579			3,600			27.2			9,973			7,696			29.6
Income from continuing operations, net of tax		83,375			61,207			36.2			162,274			111,852			45.1
Gain from discontinued operations, net of tax		—			50,133			nm			—			51,113			nm
Net income		83,375			111,340			(25.1	)		162,274			162,965			(0.4	)
Net income attributable to noncontrolling interests		(536	)		(1,436	)		62.7			(1,680	)		(3,759	)		55.3
Net income attributable to TSYS common shareholders	$	82,839			109,904			(24.6	)%	$	160,594			159,206			0.9	%
Basic earnings per share (EPS):
Income from continuing operations to TSYS common shareholders*	$	0.45			0.32			40.5	%	$	0.87			0.58			49.6	%
Gain from discontinued operations to TSYS common shareholders*		—			0.27			nm			—			0.27			nm
Basic EPS	$	0.45			0.59			(23.6	)%	$	0.87			0.85			2.5	%
Diluted EPS:
Income from continuing operations to TSYS common shareholders*	$	0.45			0.32			41.1	%	$	0.87			0.58			50.5	%
Gain from discontinued operations to TSYS common shareholders*		—			0.27			nm			—			0.26			nm
Diluted EPS	$	0.45			0.58			(23.3	)%	$	0.87			0.84			3.1	%
Weighted average shares outstanding:
(includes participating securities)
Basic		183,829			186,373						184,153			187,058
Diluted		185,020			188,367						185,299			189,437
Dividends declared per share	$	0.10			0.10					$	0.20			0.20
Amounts attributable to TSYS common shareholders:
Income from continuing operations, net of tax	$	82,839			59,771			38.6	%	$	160,594			109,092			47.2	%
Gain from discontinued operations, net of tax		—			50,133			nm			—			50,114			nm
Net income	$	82,839			109,904			(24.6	)%	$	160,594			159,206			0.9	%
Non-GAAP measures:
Adjusted EPS from continuing operations	$	0.58			0.45			29.0	%	$	1.11			0.83			34.6	%
Adjusted EBITDA	$	206,537			170,894			20.9	%	$	399,991			320,489			24.8	%

nm = not meaningful

* EPS amounts may not total due to rounding.

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TSYS Announces Second Quarter 2015 Earnings

Page 6 of 12

TSYS

Segment Breakdown

(unaudited)

(in thousands)

	Three Months Ended June 30,												Six Months Ended June 30,
							Change												Change
	2015			2014			$			%			2015			2014			$			%
Revenues before reimbursable items:
North America Services	$	287,199			233,217			53,982			23.1	%	$	553,418			457,585			95,833			20.9	%
International Services		83,857			84,732			(875	)		(1.0	)		157,587			161,505			(3,918	)		(2.4	)
Merchant Services		117,868			108,335			9,533			8.8			228,266			212,960			15,306			7.2
NetSpend		141,621			116,833			24,788			21.2			296,695			249,473			47,222			18.9
Intersegment revenues		(8,461	)		(5,050	)		(3,411	)		(67.5	)		(18,098	)		(10,705	)		(7,393	)		(69.1	)
Revenues before reimbursable items from external customers	$	622,084			538,067			84,017			15.6	%	$	1,217,868			1,070,818			147,050			13.7	%
Total revenues:
North America Services	$	333,844			273,324			60,520			22.1	%	$	643,077			535,502			107,575			20.1	%
International Services		89,618			90,466			(848	)		(0.9	)		169,420			172,844			(3,424	)		(2.0	)
Merchant Services		137,472			128,017			9,455			7.4			266,576			250,707			15,869			6.3
NetSpend		141,621			116,833			24,788			21.2			296,695			249,473			47,222			18.9
Intersegment revenues		(9,903	)		(6,604	)		(3,299	)		(50.0	)		(20,960	)		(13,643	)		(7,317	)		(53.6	)
Revenues from external customers	$	692,652			602,036			90,616			15.1	%	$	1,354,808			1,194,883			159,925			13.4	%
Depreciation and amortization:
North America Services	$	24,468			20,928			3,540			16.9	%	$	47,532			41,204			6,328			15.4	%
International Services		8,628			9,761			(1,133	)		(11.6	)		17,406			19,566			(2,160	)		(11.0	)
Merchant Services		4,446			3,567			879			24.6			8,723			6,967			1,756			25.2
NetSpend		2,622			1,890			732			38.7			4,915			3,625			1,290			35.6
Segment depreciation and amortization		40,164			36,146			4,018			11.1			78,576			71,362			7,214			10.1
Acquisition intangible amortization		22,852			24,282			(1,430	)		(5.9	)		46,718			48,595			(1,877	)		(3.9	)
Corporate admin and other		889			533			356			66.8			1,426			1,038			388			37.4
Total depreciation and amortization	$	63,905			60,961			2,944			4.8	%	$	126,720			120,995			5,725			4.7	%
Adjusted segment operating income:
North America Services	$	108,385			84,578			23,807			28.1	%	$	210,956			159,155			51,801			32.5	%
International Services		13,353			11,743			1,610			13.7			20,336			16,298			4,038			24.8
Merchant Services		40,690			32,896			7,794			23.7			74,805			63,064			11,741			18.6
NetSpend		36,442			30,703			5,739			18.7			71,909			59,421			12,488			21.0
Total adjusted segment operating income		198,870			159,920			38,950			24.4			378,006			297,938			80,068			26.9
Acquisition intangible amortization		(22,852	)		(24,282	)		1,430			5.9			(46,718	)		(48,595	)		1,877			3.9
NetSpend M&A operating expenses		—			(1,182	)		1,182			nm			—			(2,435	)		2,435			nm
Share-based compensation		(12,030	)		(9,988	)		(2,042	)		(20.4	)		(20,173	)		(17,599	)		(2,574	)		(14.6	)
Corporate admin and other		(33,386	)		(25,705	)		(7,681	)		(29.9	)		(58,017	)		(49,849	)		(8,168	)		(16.4	)
Operating income	$	130,602			98,763			31,839			32.2	%	$	253,098			179,460			73,638			41.0	%
Other:
Reimbursable items:
North America Services	$	46,645			40,107			6,538			16.3	%	$	89,659			77,917			11,742			15.1	%
International Services		5,761			5,734			27			0.5			11,833			11,339			494			4.4
Merchant Services		19,604			19,682			(78	)		(0.4	)		38,310			37,747			563			1.5
NetSpend		—			—			—			na			—			—			—			na
Intersegment revenues		(1,442	)		(1,554	)		112			7.2			(2,862	)		(2,938	)		76			2.6
Reimbursable items	$	70,568			63,969			6,599			10.3	%	$	136,940			124,065			12,875			10.4	%

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TSYS Announces Second Quarter 2015 Earnings

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TSYS

Condensed Balance Sheet

(unaudited)

(in thousands)

	Jun 30, 2015		Dec 31, 2014
Assets
Current assets:
Cash and cash equivalents	$	349,378		289,183
Accounts receivable, net		314,678		283,203
Other current assets		123,689		118,167
Total current assets		787,745		690,553
Goodwill		1,547,089		1,547,397
Other intangible assets, net		366,215		404,107
Property, equipment and software, net		647,115		656,733
Other long term assets		464,360		434,791
Total assets	$	3,812,524		3,733,581
Liabilities
Current liabilities:
Accounts payable	$	57,358		48,793
Bonds, notes and capital leases		43,791		50,911
Other current liabilities		230,075		196,809
Total current liabilities		331,224		296,513
Bonds, notes and capital leases, excluding current portion		1,387,514		1,405,106
Other long-term liabilities		291,249		309,826
Total liabilities		2,009,987		2,011,445
Redeemable noncontrolling interest		22,370		22,492
Equity
Shareholders’ equity		1,774,224		1,692,762
Noncontrolling interests in consolidated subsidiaries		5,943		6,882
Total equity		1,780,167		1,699,644
Total liabilities and equity	$	3,812,524		3,733,581

TSYS

Selected Cash Flow Highlights

(unaudited)

(in thousands)

	Six Months Ended June 30,
	2015			2014
Cash flows from operating activities:
Net income	$	162,274			162,965
Adjustments to reconcile net income to net cash provided by operating activities:
Gain on disposal of subsidiaries		—			(85,310	)
Equity in income of equity investments		(9,973	)		(7,696	)
Dividends received from equity investments		984			—
Depreciation and amortization		126,720			122,393
Other non cash adjustments		29,537			31,996
Changes in operating assets and liabilities:		(24,249	)		15,094
Net cash provided by operating activities		285,293			239,442
Net cash used in investing activities		(97,512	)		(61,539	)
Net cash used in financing activities		(126,244	)		(207,575	)
Cash and cash equivalents:
Effect of exchange rate changes on cash and cash equivalents		(1,342	)		2,399
Net increase in cash and cash equivalents		60,195			(27,273	)
Cash and cash equivalents at beginning of period		289,183			278,230
Cash and cash equivalents at end of period	$	349,378			250,957
Supplemental - Non GAAP:
Net cash provided by operating activities	$	285,293			239,442
Capital expenditures		(96,552	)		(105,776	)
Free cash flow		188,741			133,666
Principal payments on debt and capital leases		(26,393	)		(34,467	)
Available free cash flow	$	162,348			99,199

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TSYS Announces Second Quarter 2015 Earnings

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TSYS

Supplemental Information

(unaudited)

Other

Accounts on File:

	Total Accounts on File
(in millions)	June 2015		June 2014		% Change
Consumer Credit		374.1		246.5		51.8
Retail		26.4		27.9		(5.6	)
Total Consumer		400.5		274.4		45.9
Commercial		44.0		40.4		8.7
Other		24.0		20.4		18.4
Subtotal		468.5		335.2		39.8
Prepaid/Stored Value		133.1		117.7		13.2
Government Services		77.1		65.6		17.4
Commercial Card Single Use		72.7		54.2		34.2
Total AOF		751.4		572.7		31.2

Growth in Accounts on File (in millions):

	June 2014 to June 2015			June 2013 to June 2014
Beginning balance		572.7			488.7
Change in accounts on file due to:
Internal growth of existing clients		42.4			38.4
New clients		166.1			71.9
Purges/Sales		(29.3	)		(25.4	)
Deconversions		(0.5	)		(0.9	)
Ending balance		751.4			572.7

Segment data:

	Three Months Ended June 30,
							Change
	2015			2014			Inc (Dec)		%
North America Segment:
Transactions (in millions)		4,042.2			2,696.7			1,345.5		49.9	%
International Segment:
Transactions (in millions)		613.9			558.1			55.8		10.0	%
Merchant Segment:
Point-of-sale transactions (in millions)		1,089.4			1,045.1			44.3		4.2	%
Dollar sales volume (in millions)	$	12,314.8		$	11,796.5		$	518.3		4.4	%
NetSpend Segment:
Gross dollar volume (in millions)	$	5,531.0		$	4,628.0		$	903.0		19.5	%
	Six Months Ended June 30,
							Change
	2015			2014			Inc (Dec)		%
North America Segment:
Accounts on file (AOF) (in millions)		677.5			510.3			167.2		32.8	%
Transactions (in millions)		7,353.0			5,024.3			2,328.7		46.3	%
International Segment:
AOF (in millions)		73.9			62.3			11.6		18.5	%
Transactions (in millions)		1,185.9			1,076.0			109.9		10.2	%
Merchant Segment:
Point-of-sale transactions (in millions)		2,074.0			2,027.3			46.7		2.3	%
Dollar sales volume (in millions)	$	23,616.4		$	22,576.3		$	1,040.1		4.6	%
NetSpend Segment:
Gross dollar volume (in millions)	$	13,191.7		$	11,195.2		$	1,996.5		17.8	%
Direct deposit 90-day active cards (in thousands)		1,879.8			1,600.7			279.1		17.4	%
90-day active cards (in thousands)		3,885.1			3,388.0			497.1		14.7	%
% of 90-day active cards with direct deposit		48.4	%		47.2	%

- more -

TSYS Announces Second Quarter 2015 Earnings

Page 9 of 12

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 second quarter 2015 financial results using the previous year’s foreign currency exchange rates. On a full year constant currency basis, TSYS’ total revenues grew 14.8% as compared to a reported GAAP increase of 13.4%.

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 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.

- more -

TSYS Announces Second Quarter 2015 Earnings

Page 10 of 12

Reconciliation of GAAP to Non-GAAP

Constant Currency Comparison

(unaudited)

(in thousands)

	Three Months Ended June 30,								Six Months Ended June 30,
	2015			2014		Percent Change			2015			2014		Percent Change
Consolidated
Constant currency (1)	$	702,191			602,036		16.6	%	$	1,372,054			1,194,883		14.8	%
Foreign currency (2)		(9,539	)		—					(17,246	)		—
Total revenues	$	692,652			602,036		15.1	%	$	1,354,808			1,194,883		13.4	%
Constant currency (1)	$	631,025			538,067		17.3	%	$	1,233,927			1,070,818		15.2	%
Foreign currency (2)		(8,941	)		—					(16,059	)		—
Total revenues before reimbursable items	$	622,084			538,067		15.6	%	$	1,217,868			1,070,818		13.7	%
Constant currency (1)	$	131,105			98,763		32.7	%	$	253,443			179,460		41.2	%
Foreign currency (2)		(503	)		—					(345	)		—
Operating income	$	130,602			98,763		32.2	%	$	253,098			179,460		41.0	%
International Services
Constant currency (1)	$	99,076			90,466		9.5	%	$	186,456			172,844		7.9	%
Foreign currency (2)		(9,458	)		—					(17,036	)		—
Total revenues	$	89,618			90,466		(0.9	)%	$	169,420			172,844		(2.0	)%

(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 June 30,							Six Months Ended June 30,
	2015		2014		Percent Change			2015		2014		Percent Change
Total revenues	$	692,652		602,036		15.1	%	$	1,354,808		1,194,883		13.4	%
Reimbursable items		70,568		63,969		10.3			136,940		124,065		10.4
Revenues before reimbursable items	$	622,084		538,067		15.6	%	$	1,217,868		1,070,818		13.7	%

- more -

TSYS Announces Second Quarter 2015 Earnings

Page 11 of 12

Reconciliation of GAAP to Non-GAAP

Adjusted Earnings per Share

(unaudited)

(in thousands, except per share data)

	Three Months Ended June 30,							Six Months Ended June 30,
	2015		2014		Percent Change			2015		2014		Percent Change
Income from continuing operations attributable to TSYS common shareholders	$	82,839		59,771		38.6	%	$	160,594		109,092		47.2	%
Adjust for amounts attributable to TSYS common shareholders:
Add: Acquisition intangible amortization, net of taxes	$	15,083		15,799		(4.5	)%		30,844		31,612		(2.4	)
Add: Share-based compensation, net of taxes		8,033		6,584		22.0			13,474		11,601		16.1
Add: NetSpend M&A expenses, net of taxes*		—		1,122		nm			—		2,326		nm
Adjusted earnings	$	105,955		83,276		27.2	%	$	204,912		154,631		32.5	%
Basic EPS - Income from continuing operations attributable to TSYS common shareholders
As reported (GAAP)	$	0.45		0.32		40.5	%	$	0.87		0.58		49.6	%
Adjust for amounts attributable to TSYS common shareholders:
Add: Acquisition intangible amortization, net of taxes		0.08		0.08		(3.3	)		0.17		0.17		(0.9	)
Add: Share-based compensation, net of taxes		0.04		0.04		23.7			0.07		0.06		18.0
Add: NetSpend M&A expenses, net of taxes*		—		0.01		nm			—		0.01		nm
Adjusted EPS **	$	0.58		0.45		29.0	%	$	1.11		0.83		34.6	%
Weighted average shares outstanding		183,829		186,373					184,153		187,058

* 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 June 30,									Six Months Ended June 30,
	2015			2014			Percent Change			2015			2014			Percent Change
Net income	$	83,375			111,340			(25.1	)%	$	162,274			162,965			(0.4	)%
Adjust for:
Deduct: Income from discontinued operations		—			(50,133	)		nm			—			(51,113	)		nm
Deduct: Equity in income of equity investments		(4,579	)		(3,600	)		(27.2	)		(9,973	)		(7,696	)		(29.6	)
Add: Income taxes		41,597			30,771			35.2			81,379			55,106			47.7
Add: Nonoperating expense		10,209			10,385			(1.7	)		19,418			20,198			(3.9	)
Add: Depreciation and amortization		63,905			60,961			4.8			126,720			120,995			4.7
EBITDA	$	194,507			159,724			21.8	%	$	379,818			300,455			26.4	%
Adjust for:
Add: Share-based compensation		12,030			9,988			20.4			20,173			17,599			14.6
Add: NetSpend M&A operating expenses		—			1,182			nm			—			2,435			nm
Adjusted EBITDA	$	206,537			170,894			20.9	%	$	399,991			320,489			24.8	%

nm = not meaningful

- more -

TSYS Announces Second Quarter 2015 Earnings

Page 12 of 12

Reconciliation of GAAP to Non-GAAP

Segment Operating Margin and Consolidated Adjusted Operating Margin

(unaudited)

(in thousands)

	Three Months Ended June 30, 2015									Three Months Ended June 30, 2014
	Adjusted Segment Operating Income			Revenues before Reimbursable Items			Adjusted Operating Margin			Adjusted Segment Operating Income			Revenues before Reimbursable Items			Adjusted Operating Margin
North America Services	$	108,385			287,199			37.74	%	$	84,578			233,217			36.27	%
International Services		13,353			83,857			15.92			11,743			84,732			13.86
Merchant Services		40,690			117,868			34.52			32,896			108,335			30.37
NetSpend		36,442			141,621			25.73			30,703			116,833			26.28
Intersegment		—			(8,461	)					—			(5,050	)
Corporate admin and other		(33,386	)								(25,705	)
Adjusted operating margin	$	165,484			622,084			26.60	%	$	134,215			538,067			24.94	%
Acquisition intangible amortization		(22,852	)								(24,282	)
NetSpend M&A operating expenses		—									(1,182	)
Share-based compensation		(12,030	)								(9,988	)
Operating income and margin*	$	130,602			622,084			20.99	%	$	98,763			538,067			18.36	%
Reimbursable items					70,568									63,969
Operating margin (US GAAP)	$	130,602			692,652			18.86	%	$	98,763			602,036			16.40	%
	Six Months Ended June 30, 2015									Six Months Ended June 30, 2014
	Adjusted Segment Operating Income			Revenues before Reimbursable Items			Adjusted Operating Margin			Adjusted Segment Operating Income			Revenues before Reimbursable Items			Adjusted Operating Margin
North America Services	$	210,956			553,418			38.12	%	$	159,155			457,585			34.78	%
International Services		20,336			157,587			12.90			16,298			161,505			10.09
Merchant Services		74,805			228,266			32.77			63,064			212,960			29.61
NetSpend		71,909			296,695			24.24			59,421			249,473			23.82
Intersegment		—			(18,098	)					—			(10,705	)
Corporate admin and other		(58,017	)								(49,849	)
Adjusted operating margin	$	319,989			1,217,868			26.27	%	$	248,089			1,070,818			23.17	%
Acquisition intangible amortization		(46,718	)								(48,595	)
NetSpend M&A operating expenses		—									(2,435	)
Share-based compensation		(20,173	)								(17,599	)
Operating income and margin*	$	253,098			1,217,868			20.78	%	$	179,460			1,070,818			16.76	%
Reimbursable items					136,940									124,065
Operating margin (US GAAP)	$	253,098			1,354,808			18.68	%	$	179,460			1,194,883			15.02	%

* Operating margin on revenue before reimbursable items

- ### -

EX-99.2

©2015 Total System Services, Inc.® Proprietary. All rights reserved worldwide.

2015 Second Quarter and YTD Results

July 28, 2015

Exhibit 99.2

©2015 Total System Services, Inc.® Proprietary. All rights reserved worldwide.

2015 Second Quarter and YTD Results

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 2014 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.

2

> FORWARD-LOOKING STATEMENTS

2

©2015 Total System Services, Inc.® Proprietary. All rights reserved worldwide.

2015 Second Quarter and YTD Results

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.

3

> USE OF NON-GAAP FINANCIAL MEASURES

3

©2015 Total System Services, Inc.® Proprietary. All rights reserved worldwide.

4

Troy Woods

Chairman, President & Chief Executive Officer

4

©2015 Total System Services, Inc.® Proprietary. All rights reserved worldwide.

5

Paul Todd

Chief Financial Officer

5

2015 Second Quarter and YTD Results

©2015 Total System Services, Inc.® Proprietary. All rights reserved worldwide.

6

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

> CONSOLIDATED SELECTED FINANCIAL HIGHLIGHTS

$692,652

$602,036

15.1

Total Revenues

$1,354,808

$1,194,883

13.4%

622,084

538,067

15.6

Revenues

Before Reimbursable Items

1,217,868

1,070,818

13.7

206,537

170,894

20.9

Adjusted EBITDA*

399,991

320,489

24.8

$0.58

$0.45

29.0

Adjusted EPS* from Continuing

Operations

$1.11

$0.83

34.6

(in thousands, except per share data)

2

Qtr

2015

2

Qtr

2014

Percent

Change

YTD

2015

YTD

2014

Percent

Change

6

nd

nd

2015 Second Quarter and YTD Results

©2015 Total System Services, Inc.® Proprietary. All rights reserved worldwide.

7

Double digit organic revenue growth

Strong cross segment delivery of performance

Volume gains:

AOF increased 31.2%

All-time AOF high of 751M

Issuer transactions increased 43.0%

GDV up 19.5%

Expanding consolidated margins

($ in millions)

(*) Revenues Before Reimbursable Items

($ in millions)

32.3%

37.3%

31.6%

Adjusted Operating Income

Operating Margin*

34.2%

8.5%

8.4%

11.8%

> 2Q 2015 CONSOLIDATED HIGHLIGHTS

15.6%

7

45%

13%

19%

23%

Revenue by Segment*

North America

International

Merchant

NetSpend

$509.5

$525.3

$532.8

$538.1

$552.9

$569.3

$595.8

$622.1

3Q13

4Q13

1Q14

2Q14

3Q14

4Q14

1Q15

2Q15

Consolidated Revenue*

YOY Growth %

$146.3

$145.2

$113.9

$134.2

$159.8

$154.7

$154.5

$165.5

28.7%

27.6%

21.4%

24.9%

28.9%

27.2%

25.9%

26.6%

3Q13

4Q13

1Q14

2Q14

3Q14

4Q14

1Q15

2Q15

2015 Second Quarter and YTD Results

©2015 Total System Services, Inc.® Proprietary. All rights reserved worldwide.

8

All-time quarterly highs

Revenue and operating income

Accounts on file up 32.8% to 677.5M

Traditional AOF up 46.3% to 405.4M

Transactions increased 49.9% to 4.0B

461.4

481.9

495.5

510.3

541.4

550.0

653.2

677.5

3Q13

4Q13

1Q14

2Q14

3Q14

4Q14

1Q15

2Q15

Accounts on File

YOY Growth

%

(in millions)

16.2%

16.5%

11.6%

13.4%

17.2%

17.1%

18.5%

19.1%

17.4%

18.1%

14.1%

16.6%

31.8%

49.4%

($ in millions)

(*) Revenues Before Reimbursable Items

$217.3

$223.3

$224.4

$233.2

$241.0

$255.5

$266.2

$287.2

3Q13

4Q13

1Q14

2Q14

3Q14

4Q14

1Q15

2Q15

Segment

Revenue*

YOY Growth %

($ in millions)

4.5%

6.8%

Adjusted Segment Operating Income

Operating Margin*

9.1%

8.7%

10.9%

14.5%

18.7%

> 2Q 2015 NORTH AMERICA SEGMENT HIGHLIGHTS

(

) Growth Excluding Prepaid, Government Services and Single Use Accounts

32.8%

46.3%

23.1%

8

$84.4

$87.1

$74.6

$84.6

$92.7

$99.6

$102.6

$108.4

38.9%

39.0%

33.2%

36.3%

38.5%

39.0%

38.5%

37.7%

3Q13

4Q13

1Q14

2Q14

3Q14

4Q14

1Q15

2Q15

2015 Second Quarter and YTD Results

©2015 Total System Services, Inc.® Proprietary. All rights reserved worldwide.

9

Continued positive constant currency

revenue growth trend

Accounts on file increased 18.5% to 73.9M

Transactions increased 10.0% to 613.9M

Continued solid YOY growth in operating margin

59.2

59.1

60.7

62.3

64.1

66.6

70.5

73.9

3Q13

4Q13

1Q14

2Q14

3Q14

4Q14

1Q15

2Q15

Accounts on File

YOY Growth

%

(in millions)

12.1%

8.5%

8.9%

7.5%

8.1%

12.7%

16.1%

Adjusted Segment Operating Income

Operating Margin*

$77.9

$90.6

$76.8

$84.7

$87.4

$92.9

$73.7

$83.9

3Q13

4Q13

1Q14

2Q14

3Q14

4Q14

1Q15

2Q15

Segment

Revenue*

YOY Growth %

($ in millions)

Reported

Constant

Currency

(*) Revenues Before Reimbursable Items

($ in millions)

0.7%

3.1%

9.0%

8.6%

0.5%

(4.6%)

10.6%

1.8%

12.2%

4.4%

2.5%

5.7%

(4.0%)

5.1%

> 2Q 2015 INTERNATIONAL SEGMENT HIGHLIGHTS

18.5%

(1.0%)

9.4%

9

$9.5

$18.0

$4.6

$11.7

$16.0

$22.8

$7.0

$13.4

12.2%

19.9%

5.9%

13.9%

18.3%

24.6%

9.5%

15.9%

3Q13

4Q13

1Q14

2Q14

3Q14

4Q14

1Q15

2Q15

$51

$48

$45

$46

$50

$44

$43

$46

$63

$62

$59

$62

$65

$64

$67

$71

3Q13

4Q13

1Q14

2Q14

3Q14

4Q14

1Q15

2Q15

Indirect

Direct

2015 Second Quarter and YTD Results

©2015 Total System Services, Inc.® Proprietary. All rights reserved worldwide.

10

Revenue up 8.8% and operating margin up

416 bps YOY

Revenue mix: 61% Direct; 39% Indirect

SBS Sales Volume at $6.3B, up 10% YOY

POS transactions increased 8.1%, excluding

deconverted

accounts

$113.6

$110.4

$104.6

$108.3

$115.0

$107.7

$110.4

$117.9

3Q13

4Q13

1Q14

2Q14

3Q14

4Q14

1Q15

2Q15

Segment

Revenue*

YOY Growth %

(*) Revenues Before Reimbursable Items

($ in millions)

5.4%

4.3%

$40.8

$36.0

$30.2

$32.9

$40.4

$31.4

$34.1

$40.7

35.9%

32.6%

28.8%

30.4%

35.1%

29.2%

30.9%

34.5%

3Q13

4Q13

1Q14

2Q14

3Q14

4Q14

1Q15

2Q15

Adjusted Segment Operating Income

Operating Margin*

($ in millions)

(4.3%)

(4.1%)

1.2%

(2.4%)

5.5%

> 2Q 2015 MERCHANT SEGMENT HIGHLIGHTS

Segment Revenue by LOB

YOY Growth %

26%

22%

(12%)

(12%)

($ in millions)

4%

(14%)

1%

(10%)

4%

(2%)

(9%)

3%

(4%)

13%

8.8%

16%

(0%)

10

2015 Second Quarter and YTD Results

©2015 Total System Services, Inc.® Proprietary. All rights reserved worldwide.

11

Gross Dollar Volume (GDV) up 19.5%

Total active cards at 3.9M, up 14.7%

Direct deposit active cards at 1.9M, up 17.4%

Extended relationship with MetaBank

for 5 years

Diversification of our issuing bank relationships

$3.8

$4.0

$6.6

$4.6

$4.4

$4.7

$7.7

$5.5

3Q13

4Q13

1Q14

2Q14

3Q14

4Q14

1Q15

2Q15

21.5%

22.1%

17.2%

16.6%

18.2%

16.7%

($ in billions)

22.4%

Gross Dollar Volume

YOY Growth %

$103.7

$104.1

$132.6

$116.8

$114.0

$119.2

$155.1

$141.6

3Q13

4Q13

1Q14

2Q14

3Q14

4Q14

1Q15

2Q15

22.2%

16.1%

13.1%

11.4%

10.0%

14.4%

16.9%

21.2%

Adjusted Segment Operating Income

Operating Margin

Segment Revenue

YOY Growth %

($ in millions)

($ in millions)

$34.6

$31.7

$28.7

$30.7

$36.1

$32.7

$35.5

$36.4

33.4%

30.5%

21.7%

26.3%

31.7%

27.5%

22.9%

25.7%

3Q13

4Q13

1Q14

2Q14

3Q14

4Q14

1Q15

2Q15

> 2Q 2015 NETSPEND SEGMENT HIGHLIGHTS

19.5%

11

2015 Second Quarter and YTD Results

©2015 Total System Services, Inc.® Proprietary. All rights reserved worldwide.

12

> SEGMENT OPERATING MARGIN AND CONSOLIDATED

ADJUSTED OPERATING MARGIN

Revenues before

Reimbursable

Items

Adjusted

Operating Margin

Adjusted

Segment

Operating Income

North America

$108,385

$287,199

37.74%

International

13,353

83,857

15.92%

Merchant

40,690

117,868

34.52%

NetSpend

36,442

141,621

25.73%

Eliminations

--

(8,461)

Corporate administration excluding stock comp

(33,386)

--

Adjusted

operating margin

$165,484

$622,084

26.60%

Amortization of acquisition intangibles

(22,852)

Share-based compensation

(12,030)

Operating

income (US GAAP)

$130,602

(in thousands)

Three Months Ended June 30, 2015

12

2015 Second Quarter and YTD Results

©2015 Total System Services, Inc.® Proprietary. All rights reserved worldwide.

13

> SEGMENT OPERATING MARGIN AND CONSOLIDATED

ADJUSTED OPERATING MARGIN

Revenues before

Reimbursable

Items

Adjusted

Operating Margin

Adjusted

Segment

Operating Income

North America

$210,956

$553,418

38.12%

International

20,336

157,587

12.90%

Merchant

74,805

228,266

32.77%

NetSpend

71,909

296,695

24.24%

Eliminations

--

(18,098)

Corporate administration excluding stock comp

(58,017)

--

Adjusted

operating margin

$319,989

$1,217,868

26.27%

Amortization of acquisition intangibles

(46,718)

Stock-based compensation

(20,173)

Operating

income (US GAAP)

$253,098

(in thousands)

Six Months Ended June 30, 2015

13

2015 Second Quarter and YTD Results

©2015 Total System Services, Inc.® Proprietary. All rights reserved worldwide.

14

> ROLLFORWARD OF QUARTERLY CASH BALANCE 

$200

$500

$100

$0

$300

Operating

Activities

$127

Cap Ex

($53)

Debt Pmts

($11)

Dividends

($19)

Ending

Balance

$349

(in millions)

3/31/2015

6/30/2015

$400

Share

Repurchase

($29)

Beginning

Balance

$328

Other

$6

14

2015 Second Quarter and YTD Results

©2015 Total System Services, Inc.® Proprietary. All rights reserved worldwide.

15

> CASH FLOW STRENGTH: 2015 TTM Consolidated

Financial Highlights

(in millions)

$792

$606

$379

$329

$349

$0

$75

$150

$225

$300

$375

$450

$525

$600

$675

$750

$825

$900

Adjusted EBITDA

Cash flow from operations

Free cash flow

Net income

Ending cash

(TTM = Trailing Twelve Months)

15

2015 Second Quarter and YTD Results

©2015 Total System Services, Inc.® Proprietary. All rights reserved worldwide.

Range

Range

Percent Change

$2,667

to

$2,716

9%

to

11%

Before

Reimbursable

Items

$2,412

to

$2,456

10%

to

12%

EPS

attributable

to

TSYS

common

from

continuing

operations

$2.25

to

$2.29

15%

to

17%

Basic

Weighted

Shares

184

(in millions, except per share data)

(*) See Appendix for guidance assumptions

16

> 2015 REVISED GUIDANCE*

16

©2015 Total System Services, Inc.® Proprietary. All rights reserved worldwide.

17

Q&A

17

©2015 Total System Services, Inc.® Proprietary. All rights reserved worldwide.

18

Appendix

18

2015 Second Quarter and YTD Results

©2015 Total System Services, Inc.® Proprietary. All rights reserved worldwide.

19

> APPENDIX: Non-GAAP Items –

Adjusted EBITDA

and Adjusted EPS

19

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. 

2015 Second Quarter and YTD Results

©2015 Total System Services, Inc.® Proprietary. All rights reserved worldwide.

20

Consumer Credit

374.1

246.5

51.8

374.1

364.5

2.6

Retail

26.4

27.9

(5.6

)

26.4

28.3

(6.7

Total Consumer

400.5

274.4

45.9

400.5

392.8

2.0

Commercial

44.0

40.4

8.7

44.0

42.3

3.8

Other

24.0

20.4

18.4

24.0

22.7

6.3

Subtotal

468.5

335.2

39.8

468.5

457.8

2.3

Prepaid*/

Stored Value

133.1

117.7

13.2

133.1

126.6

5.2

Government

Services

77.1

65.6

17.4

77.1

74.5

3.5

Commercial Card

Single

Use

72.7

54.2

34.2

72.7

64.8

12.1

Total AOF

751.4

572.7

31.2

751.4

723.7

3.8

(in millions)

Jun

2015

Jun

2015

Jun

2014

Jun

2014

%

Change

%

Change

Jun

2015

Jun

2015

Mar

2015

Mar

2015

%

Change

%

Change

(* -

Prepaid does not include NetSpend accounts)

> APPENDIX: Accounts on File Portfolio Summary

20

2015 Second Quarter and YTD Results

©2015 Total System Services, Inc.® Proprietary. All rights reserved worldwide.

21

> APPENDIX: Non-GAAP Reconciliation –

Revenues Before

Reimbursable Items

Three Months Ended                     Six Months Ended

6/30/15              6/30/14

6/30/15                  6/30/14

Revenues

$692,652

$602,036

$1,354,808

$1,194,883

Items

70,568

63,969

136,940

124,065

Before

Reimbursable

Items

$622,084

$538,067

$1,217,868

$1,070,818

(in thousands)

21

2015 Second Quarter and YTD Results

©2015 Total System Services, Inc.® Proprietary. All rights reserved worldwide.

22

> APPENDIX: Non-GAAP Reconciliation –

Adjusted Segment

Operating Income and Operating Margin

Three

Months Ended                                   Six Months Ended

6/30/15             6/30/14                                 6/30/15             6/30/14

(in thousands)

22

Operating income

$130,602

$98,763

$253,098

$179,460

Add:

Acquisition

intangible amort

22,852

24,282

46,718

48,595

Add: Corporate admin and other

45,416

36,875

78,190

69,883

Total segment

adjusted operating income

$198,870

$159,920

$378,006

$297,938

By segment: North America services (a)

$108,385

$84,578

$210,956

$159,155

International services (b)

$13,353

$11,743

$20,336

$16,298

Merchant services (c)

$40,690

$32,896

$74,805

$63,064

NetSpend (d)

$36,442

$30,703

$71,909

$59,421

Total revenues

$692,652

$602,036

$1,354,808

$1,194,883

Reimbursable items

(70,568)

(63,969)

(136,940)

(124,065)

Total segment

revenues

before reimbursable items

$622,084

$538,067

$1,217,868

$1,070,818

Intersegment

revenues

8,461

5,050

18,098

10,705

By segment: North America services (e)

$287,199

$233,217

$553,418

$457,585

International services (f)

$83,857

$84,732

$157,587

$161,505

Merchant services (g)

$117,868

$108,335

$228,266

$212,960

NetSpend (h)

$141,621

$116,833

$296,695

$249,473

Adjusted segment operating margin:

North America services (a) / (e)

37.74%

36.27%

38.12%

34.78%

International services

(b) / (f)

15.92%

13.86%

12.90%

10.09%

Merchant services (c) / (g)

34.52%

30.37%

32.77%

29.61%

NetSpend (d) / (h)

25.73%

26.28%

24.24%

23.82%

2015 Second Quarter and YTD Results

©2015 Total System Services, Inc.® Proprietary. All rights reserved worldwide.

23

(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.

> APPENDIX: Non-GAAP Reconciliation –

Constant Currency

Six

Months Ended

6/30/15        6/30/14

Percentage

Change

Three

Months Ended

6/30/15          6/30/14

Percentage

Change

(in thousands)

23

Consolidated:

Constant Currency (1)

$702,191

$602,036

16.6

$1,372,054

$1,194,883

14.8

Foreign Currency

(2)

(9,539)

---

(17,246

---

Total Revenues

$692,652

$602,036

15.1

$1,354,808

$1,194,883

13.4

International

Services:

Constant Currency (1)

$99,076

$90,466

9.5

$186,456

$172,844

7.9

Foreign Currency (2)

(9,458)

---

(17,036

---

Total Revenues

$89,618

$90,466

(0.9

$169,420

$172,844

(2.0

2015 Second Quarter and YTD Results

©2015 Total System Services, Inc.® Proprietary. All rights reserved worldwide.

24

(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.

> APPENDIX: Non-GAAP Reconciliation –

Constant Currency

Six

Months Ended

6/30/15        6/30/14

Percentage

Change

Three

Months Ended

6/30/15          6/30/14

Percentage

Change

(in thousands)

24

Consolidated:

Constant Currency (1)

$631,025

$538,067

17.3

$1,233,927

$1,070,818

15.2

Foreign Currency

(2)

(8,941)

---

(16,059

---

Revenues before

reimbursable items

$622,084

$538,067

15.6

$1,217,868

$1,070,818

13.7

International

Services:

Constant Currency (1)

$92,717

$84,732

9.4

$173,436

$161,505

7.4

Foreign Currency (2)

(8,860)

---

(15,849

---

Revenues before

Reimbursable Items

$83,857

$84,732

(1.0

$157,587

$161,505

(2.4

> APPENDIX: Non-GAAP Reconciliation –

EBITDA and

Adjusted EBITDA

2015 Second Quarter and YTD Results

©2015 Total System Services, Inc.® Proprietary. All rights reserved worldwide.

25

(in thousands)

25

Three Months Ended

Six

Months Ended

Jun

2015

Jun

2014

Jun

2015

Jun

2014

Net income

:

As reported (GAAP) (a)

$83,375

$111,340

$162,274

$162,965

Adjusted for:

Deduct: Income from discontinued

operations

--

(50,133

--

(51,113)

Deduct: Equity in Income of Equity

Investments

(4,579)

(3,600

(9,973

(7,696)

Add: Income Taxes

41,597

30,771

81,379

55,106

Add: Nonoperating expenses

10,209

10,385

19,418

20,198

Add: Depreciation and

amortization

63,905

60,961

126,720

120,995

EBITDA

$194,507

$159,724

$379,818

$300,455

Adjust for:

Add: Share-based compensation

12,030

9,988

20,173

17,599

Add: NetSpend

M&A expenses

--

1,182

--

2,435

Adjusted EBITDA

$206,537

$170,894

$399,991

$320,489

2015 Second Quarter and YTD Results

©2015 Total System Services, Inc.® Proprietary. All rights reserved worldwide.

26

> APPENDIX: Non-GAAP Reconciliation –

Adjusted EPS

(in thousands)

26

Three Months Ended

Six Months Ended

Jun

2015

Jun

2014

Jun

2015

Jun

2014

Income

from continuing operations available to

TSYS Common Shareholders:

As reported (GAAP) (a)

$82,839

$59,771

$160,594

$109,092

Adjusted for amounts attributable

to TSYS

common shareholders (net of taxes):

Acquisition intangible amortization

15,083

15,799

30,844

31,612

Share-based compensation

8,033

6,584

13,474

11,601

NetSpend M&A expenses

--

1,122

--

2,326

Adjusted earnings (b)

$105,955

$83,276

$204,912

$154,631

Average common shares outstanding

and

participating securities (c)

183,829

186,373

184,153

187,058

Basic EPS Available to TSYS Common

Shareholders (a) / (c)

$0.45

$0.32

$0.87

$0.58

Adjusted

EPS Available to TSYS Common

Shareholders (b) / (c)

$0.58

$0.45

$1.11

$0.83

2015 Second Quarter and YTD Results

©2015 Total System Services, Inc.® Proprietary. All rights reserved worldwide.

27

Trailing Twelve

Months Ended

6/30/2015

flows

from

operating

activities

$606,052

Purchases of property

and equipment

(61,215)

Additions to licensed computer software from vendors

(35,042)

Additions

to

internally

developed

computer

software

(41,100)

Additions

to

contract

acquisition

costs

(89,343)

cash

flow

$379,352

(in thousands)

> APPENDIX: Non-GAAP Reconciliation –

Free Cash Flow

27

> APPENDIX: Non-GAAP Reconciliation –

EBITDA and

Adjusted EBITDA

2015 Second Quarter and YTD Results

©2015 Total System Services, Inc.® Proprietary. All rights reserved worldwide.

28

Trailing Twelve

Months Ended

6/30/2015

Net Income

$328,714

Adjusted for:

Add: Discontinued operations

2,458

Deduct: Equity in Income of Equity Investments

(19,860)

Add: Income Taxes

156,033

Add: Nonoperating expense

37,931

Add: Depreciation and Amortization

252,346

EBITDA

$757,623

Adjust for: Share-based compensation

33,364

NetSpend M&A Operating Expenses*

782

Adjusted EBITDA

$791,769

(in thousands)

* Excludes share-based compensation

28

> APPENDIX: 2015 Revised Guidance Assumptions

©2015 Total System Services, Inc.® Proprietary. All rights reserved worldwide.

29

The revised guidance assumes:

There will be no significant movements in the London Interbank Offered rate

and TSYS will not make any significant draws on the remaining balance of

its credit facility;

There will be no significant movement in foreign currency exchange rates

related to TSYS’ business;

TSYS will not incur significant expenses associated with the conversion of

new large clients, additional acquisitions, or any significant impairment of

goodwill or other intangibles;

There will be no deconversions of large clients during the year; and

The economy will not worsen.

Additionally, the impact of any future share repurchases is not included.

2015 Second Quarter and YTD Results