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

October 27, 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 October 27, 2015, Total System Services, Inc. (“Registrant”) issued a press release announcing financial results for the third quarter ended September 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 October 27, 2015, Registrant will hold an investor conference call and webcast to discuss its financial results for the third quarter ended September 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 October 27, 2015
99.2	Registrant’s presentation dated October 27, 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: October 27, 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 Third Quarter Adjusted EPS Grew 40.2%

Raises 2015 Adjusted EPS and Revenue Guidance

COLUMBUS, Ga., October 27, 2015 — TSYS (NYSE: TSS) today reported results for the third quarter and year to date.

“We are very pleased with our outstanding third quarter results. These exceptional results were driven by the performance of our clients, the businesses we serve, the consumers who buy and use our products and our team members executing to our strategic plan,” said M. Troy Woods, chairman, president and chief executive officer of TSYS.

“As a result of this continued strong performance, we are raising our guidance range for revenues before reimbursables to 12-13%, up from the previous range of 10-12%, and our adjusted earnings per share (EPS) guidance range to 24-26%, up from the previous range of 15-17%,” said Woods.

Highlights for the third quarter of 2015 include:

• Adjusted EPS from continuing operations were $0.78, an increase of 40.2%. On a GAAP basis, basic EPS from continuing operations were $0.66, an increase of 46.7%.

• Excluding the impact from discrete tax items of approximately $0.13 per share in the quarter, adjusted EPS was $0.65, an increase of 17.2%.

• Income from continuing operations attributable to TSYS’ shareholders was $120.6 million, an increase of 45.5%.

• Adjusted EBITDA was $238.9 million, an increase of 20.6%.

• Total revenues for the quarter were $707.9 million, an increase of 14.8%. Revenues before reimbursable items were $636.4 million, an increase of 15.1%.

• Adjusted operating margin was 31.0%. GAAP operating margin was 23.0%.

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TSYS Reports Third Quarter Adjusted EPS Grew 40.2%

Highlights for the first nine months of 2015 include:

• Adjusted EPS from continuing operations were $1.89, an increase of 36.8%. On a GAAP basis, basic EPS from continuing operations were $1.53, an increase of 48.2%.

• Excluding the impact from discrete tax items of approximately $0.13 per share year to date, adjusted EPS was $1.76, an increase of 27.5%.

• Income from continuing operations attributable to TSYS’ shareholders was $281.2 million, an increase of 46.5%.

• Adjusted EBITDA was $638.9 million, an increase of 23.2%.

• Total revenues were $2.1 billion, an increase of 13.8%. Revenues before reimbursable items were $1.9 billion, an increase of 14.2%.

• Adjusted operating margin was 27.9%. GAAP operating margin was 20.2%.

“Our year-to-date free cash flow increased 45.8% over 2014 to $324.4 million. With this build-up of cash during the quarter, we plan to continue our strategic goal of returning approximately 75% of available free cash flow to our shareholders in the form of dividends and share repurchases,” said Woods.

	2015 Revised Financial Outlook
	Range (in millions, except per share amounts)	Percent Change
Total revenues	$2,728 to $2,746	11% to 12%
Revenues before reimbursable items	$2,463 to $2,473	12% to 13%
Adjusted EPS attributable to TSYS common shareholders from continuing operations*	$2.43 to $2.47	24% to 26%
* 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, October 27. 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 Third Quarter Adjusted EPS Grew 40.2%

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 Third Quarter Adjusted EPS Grew 40.2%

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’ plan to continue its strategic goal of returning approximately 75% of available free cash flow to shareholders and 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 Third Quarter 2015 Earnings

Page 5 of 13

TSYS

Financial Highlights

(unaudited)

(in thousands, except per share data)

	Three Months Ended September 30,									Nine Months Ended September 30,
	2015			2014			Percent Change			2015			2014			Percent Change
Total revenues	$	707,890			616,891			14.8	%	$	2,062,698			1,811,774			13.8	%
Cost of services		456,465			407,391			12.0			1,366,141			1,246,763			9.6
Selling, general and administrative expenses		88,321			80,093			10.3			280,355			256,144			9.5
Total expenses		544,786			487,484			11.8			1,646,496			1,502,907			9.6
Operating income		163,104			129,407			26.0			416,202			308,867			34.8
Nonoperating expenses		(8,564	)		(9,997	)		14.3			(27,982	)		(30,195	)		7.3
Income before income taxes, noncontrolling interests and equity in income of equity investments		154,540			119,410			29.4			388,220			278,672			39.3
Income taxes		37,825			39,227			(3.6	)		119,204			94,333			26.4
Income before noncontrolling interests and equity in income of equity investments		116,715			80,183			45.6			269,016			184,339			45.9
Equity in income of equity investments, net of tax		5,336			4,135			29.0			15,309			11,831			29.4
Income from continuing operations, net of tax		122,051			84,318			44.8			284,325			196,170			44.9
Gain from discontinued operations, net of tax		—			880			nm			—			51,993			nm
Net income		122,051			85,198			43.3			284,325			248,163			14.6
Net income attributable to noncontrolling interests		(1,429	)		(1,393	)		(2.6	)		(3,109	)		(5,151	)		39.6
Net income attributable to TSYS common shareholders	$	120,622			83,805			43.9	%	$	281,216			243,012			15.7	%
Basic earnings per share (EPS):
Income from continuing operations to TSYS common shareholders*	$	0.66			0.45			46.7	%	$	1.53			1.03			48.2	%
Gain from discontinued operations to TSYS common shareholders*		—			0.00			nm			—			0.27			nm
Basic EPS	$	0.66			0.45			45.2	%	$	1.53			1.30			17.1	%
Diluted EPS:
Income from continuing operations to TSYS common shareholders*	$	0.65			0.44			47.3	%	$	1.52			1.02			49.1	%
Gain from discontinued operations to TSYS common shareholders*		—			0.00			nm			—			0.27			nm
Diluted EPS	$	0.65			0.45			44.2	%	$	1.52			1.29			17.8	%
Weighted average shares outstanding: (includes participating securities)
Basic		183,954			185,577						184,320			186,559
Diluted		185,281			187,572						185,534			188,836
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	$	120,622			82,925			45.5	%	$	281,216			192,018			46.5	%
Gain from discontinued operations, net of tax		—			880			nm			—			50,994			nm
Net income	$	120,622			83,805			43.9	%	$	281,216			243,012			15.7	%
Non-GAAP measures:
Adjusted EPS from continuing operations	$	0.78			0.56			40.2	%	$	1.89			1.38			36.8	%
Adjusted EBITDA	$	238,898			198,040			20.6	%	$	638,889			518,529			23.2	%

nm = not meaningful

* EPS amounts may not total due to rounding.

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TSYS Announces Third Quarter 2015 Earnings

Page 6 of 13

TSYS

Segment Breakdown

(unaudited)

(in thousands)

	Three Months Ended September 30,												Nine Months Ended September 30,
							Change												Change
	2015			2014			$			%			2015			2014			$			%
Revenues before reimbursable items:
North America Services	$	293,571			240,957			52,614			21.8	%	$	846,989			698,543			148,446			21.3	%
International Services		86,446			87,385			(939	)		(1.1	)		244,033			248,890			(4,857	)		(2.0	)
Merchant Services		123,721			115,012			8,709			7.6			351,987			327,972			24,015			7.3
NetSpend		139,648			114,048			25,600			22.4			436,343			363,521			72,822			20.0
Intersegment revenues		(7,000	)		(4,542	)		(2,458	)		(54.1	)		(25,098	)		(15,248	)		(9,850	)		(64.6	)
Revenues before reimbursable items from external customers	$	636,386			552,860			83,526			15.1	%	$	1,854,254			1,623,678			230,576			14.2	%
Total revenues:
North America Services	$	341,416			282,833			58,583			20.7	%	$	984,493			818,335			166,158			20.3	%
International Services		92,177			91,865			312			0.3			261,597			264,710			(3,113	)		(1.2	)
Merchant Services		143,100			134,117			8,983			6.7			409,676			384,824			24,852			6.5
NetSpend		139,648			114,048			25,600			22.4			436,343			363,521			72,822			20.0
Intersegment revenues		(8,451	)		(5,972	)		(2,479	)		(41.5	)		(29,411	)		(19,616	)		(9,795	)		(49.9	)
Revenues from external customers	$	707,890			616,891			90,999			14.8	%	$	2,062,698			1,811,774			250,924			13.8	%
Depreciation and amortization:
North America Services	$	25,300			22,173			3,127			14.1	%	$	72,831			63,377			9,454			14.9	%
International Services		8,678			9,610			(932	)		(9.7	)		26,084			29,176			(3,092	)		(10.6	)
Merchant Services		4,670			3,624			1,046			28.9			13,394			10,591			2,803			26.5
NetSpend		2,632			2,155			477			22.1			7,547			5,779			1,768			30.6
Segment depreciation and amortization		41,280			37,562			3,718			9.9			119,856			108,923			10,933			10.0
Acquisition intangible amortization		22,883			24,210			(1,327	)		(5.5	)		69,601			72,805			(3,204	)		(4.4	)
Corporate admin and other		336			662			(326	)		(49.2	)		1,762			1,702			60			3.5
Total depreciation and amortization	$	64,499			62,434			2,065			3.3	%	$	191,219			183,430			7,789			4.2	%
Adjusted segment operating income:
North America Services	$	113,946			92,736			21,210			22.9	%	$	324,902			251,892			73,010			29.0	%
International Services		18,370			15,976			2,394			15.0			38,706			32,274			6,432			19.9
Merchant Services		42,387			40,409			1,978			4.9			117,192			103,473			13,719			13.3
NetSpend		37,315			36,123			1,192			3.3			109,224			95,543			13,681			14.3
Total adjusted segment operating income		212,018			185,244			26,774			14.5			590,024			483,182			106,842			22.1
Acquisition intangible amortization		(22,883	)		(24,210	)		1,327			5.5			(69,601	)		(72,805	)		3,204			4.4
NetSpend M&A operating expenses		—			(779	)		779			nm			—			(3,213	)		3,213			nm
Share-based compensation		(11,295	)		(5,420	)		(5,875	)		nm			(31,468	)		(23,019	)		(8,449	)		(36.7	)
Corporate admin and other		(14,736	)		(25,428	)		10,692			42.0			(72,753	)		(75,278	)		2,525			3.4
Operating income	$	163,104			129,407			33,697			26.0	%	$	416,202			308,867			107,335			34.8	%
Other:
Reimbursable items:
North America Services	$	47,845			41,876			5,969			14.3	%	$	137,504			119,792			17,712			14.8	%
International Services		5,731			4,480			1,251			27.9			17,564			15,820			1,744			11.0
Merchant Services		19,379			19,105			274			1.4			57,689			56,852			837			1.5
NetSpend		—			—			—			na			—			—			—			na
Intersegment revenues		(1,451	)		(1,430	)		(21	)		(1.5	)		(4,313	)		(4,368	)		55			1.3
Reimbursable items	$	71,504			64,031			7,473			11.7	%	$	208,444			188,096			20,348			10.8	%

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TSYS Announces Third Quarter 2015 Earnings

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TSYS

Condensed Balance Sheet

(unaudited)

(in thousands)

	September 30, 2015		December 31, 2014
Assets
Current assets:
Cash and cash equivalents	$	447,850		289,183
Accounts receivable, net		333,467		283,203
Other current assets		115,007		118,167
Total current assets		896,324		690,553
Goodwill		1,545,888		1,547,397
Other intangible assets, net		348,017		404,107
Property, equipment and software, net		641,696		656,733
Other long term assets		457,597		434,791
Total assets	$	3,889,522		3,733,581
Liabilities
Current liabilities:
Accounts payable	$	55,111		48,793
Bonds, notes and capital leases		41,777		50,911
Other current liabilities		228,473		196,809
Total current liabilities		325,361		296,513
Bonds, notes and capital leases, excluding current portion		1,377,927		1,405,106
Other long-term liabilities		282,067		309,826
Total liabilities		1,985,355		2,011,445
Redeemable noncontrolling interest		23,001		22,492
Equity
Shareholders’ equity		1,875,615		1,692,762
Noncontrolling interests in consolidated subsidiaries		5,551		6,882
Total equity		1,881,166		1,699,644
Total liabilities and equity	$	3,889,522		3,733,581

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TSYS Announces Third Quarter 2015 Earnings

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TSYS

Selected Cash Flow Highlights

(unaudited)

(in thousands)

	Nine Months Ended September 30,
	2015			2014
Cash flows from operating activities:
Net income	$	284,325			248,163
Adjustments to reconcile net income to net cash provided by operating activities:
Gain on disposal of subsidiaries		—			(87,013	)
Equity in income of equity investments		(15,309	)		(11,831	)
Dividends received from equity investments		12,092			9,189
Depreciation and amortization		191,219			184,827
Other non cash adjustments		35,926			40,626
Changes in operating assets and liabilities:		(47,699	)		6,153
Net cash provided by operating activities		460,554			390,114
Net cash used in investing activities		(138,618	)		(164,528	)
Net cash used in financing activities		(158,429	)		(236,189	)
Cash and cash equivalents:
Effect of exchange rate changes on cash and cash equivalents		(4,840	)		(1,586	)
Net increase in cash and cash equivalents		158,667			(12,189	)
Cash and cash equivalents at beginning of period		289,183			278,230
Cash and cash equivalents at end of period	$	447,850			266,041
Supplemental—Non-GAAP:
Net cash provided by operating activities	$	460,554			390,114
Capital expenditures		(136,183	)		(167,656	)
Free cash flow		324,371			222,458
Principal payments on debt and capital leases		(42,215	)		(48,682	)
Available free cash flow	$	282,156			173,776
Dividends paid on common stock		55,277			56,159
Repurchase of common stock under plans		83,521			115,675
Available free cash flow returned to shareholders	$	138,798			171,834
Percent available free cash flow returned to shareholders		49.2	%		98.9	%

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TSYS Announces Third Quarter 2015 Earnings

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TSYS

Supplemental Information

(unaudited)

Other

Accounts on File (AOF):

	Total Accounts on File
(in millions)	September 2015		September 2014		% Change
Consumer Credit		373.6		263.9		41.5
Retail		25.4		28.4		(10.3	)
Total Consumer		399.0		292.3		36.5
Commercial		44.1		41.5		6.0
Other		24.8		21.2		17.4
Subtotal		467.9		355.0		31.8
Prepaid/Stored Value		133.8		125.1		6.9
Government Services		78.7		66.7		18.0
Commercial Card Single Use		80.0		58.7		36.3
Total AOF		760.4		605.5		25.6

Growth in Accounts on File (in millions):

	September 2014 to September 2015			September 2013 to September 2014
Beginning balance		605.5			520.6
Change in accounts on file due to:
Internal growth of existing clients		41.0			39.6
New clients		153.7			76.0
Purges/Sales		(38.3	)		(30.3	)
Deconversions		(1.5	)		(0.4	)
Ending balance		760.4			605.5

Segment data:

	Three Months Ended September 30,
					Change
	2015		2014		Inc(Dec)		%
North America Segment:
Transactions (in millions)		4,156.7		2,833.6		1,323.1		46.7	%
International Segment:
Transactions (in millions)		626.1		574.3		51.8		9.0	%
Merchant Segment:
Point-of-sale transactions (in millions)		1,117.3		1,034.4		82.9		8.0	%
Dollar sales volume (in millions)	$	12,055.7	$	11,877.5	$	178.2		1.5	%
NetSpend Segment:
Gross dollar volume (in millions)	$	5,391.2	$	4,409.3	$	981.9		22.3	%

	Nine Months Ended September 30,
							Change
	2015			2014			Inc(Dec)		%
North America Segment:
AOF (in millions)		685.5			541.4			144.1		26.6	%
Transactions (in millions)		11,509.6			7,857.9			3,651.7		46.5	%
International Segment:
AOF (in millions)		74.9			64.1			10.8		16.9	%
Transactions (in millions)		1,812.0			1,650.3			161.7		9.8	%
Merchant Segment:
Point-of-sale transactions (in millions)		3,191.3			3,061.7			129.6		4.2	%
Dollar sales volume (in millions)	$	35,671.5		$	34,453.8		$	1,217.7		3.5	%
NetSpend Segment:
Gross dollar volume (in millions)	$	18,582.8		$	15,604.5		$	2,978.3		19.1	%
Direct deposit 90-day active cards (in thousands)		1,796.0			1,520.7			275.3		18.1	%
90-day active cards (in thousands)		3,643.4			3,086.1			557.3		18.1	%
% of 90-day active cards with direct deposit		49.3	%		49.3	%

- more -

TSYS Announces Third Quarter 2015 Earnings

Page 10 of 13

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 2015 financial results using the previous year’s foreign currency exchange rates. On a full year constant currency basis, TSYS’ total revenues grew 15.3% as compared to a reported GAAP increase of 13.8%.

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 Third Quarter 2015 Earnings

Page 11 of 13

Reconciliation of GAAP to Non-GAAP

Constant Currency Comparison

(unaudited)

(in thousands)

	Three Months Ended September 30,								Nine Months Ended September 30,
	2015			2014		Percent Change			2015			2014		Percent Change
Consolidated
Constant currency (1)	$	716,363			616,891		16.1	%	$	2,088,418			1,811,774		15.3	%
Foreign currency impact (2)		(8,473	)		—					(25,720	)		—
Total revenues	$	707,890			616,891		14.8	%	$	2,062,698			1,811,774		13.8	%
Constant currency (1)	$	644,364			552,860		16.6	%	$	1,878,291			1,623,678		15.7	%
Foreign currency impact (2)		(7,978	)		—					(24,037	)		—
Total revenues before reimbursable items	$	636,386			552,860		15.1	%	$	1,854,254			1,623,678		14.2	%
Constant currency (1)	$	163,464			129,407		26.3	%	$	416,907			308,867		35.0	%
Foreign currency impact (2)		(360	)		—					(705	)		—
Operating income	$	163,104			129,407		26.0	%	$	416,202			308,867		34.8	%
International Services
Constant currency (1)	$	100,512			91,865		9.4	%	$	286,969			264,710		8.4	%
Foreign currency impact (2)		(8,335	)		—					(25,372	)		—
Total revenues	$	92,177			91,865		0.3	%	$	261,597			264,710		(1.2	)%

(1) Reflects current period results on a non-GAAP basis as if foreign currency rates did not change from the comparable prior year period.

(2) Reflects the impact of calculated changes in foreign currency rates from the comparable period.

Revenues Before Reimbursable Items

(unaudited)

(in thousands)

	Three Months Ended September 30,							Nine Months Ended September 30,
					Percent							Percent
	2015		2014		Change			2015		2014		Change
Total revenues	$	707,890		616,891		14.8	%	$	2,062,698		1,811,774		13.8	%
Reimbursable items		71,504		64,031		11.7			208,444		188,096		10.8
Revenues before reimbursable items	$	636,386		552,860		15.1	%	$	1,854,254		1,623,678		14.2	%

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TSYS Announces Third Quarter 2015 Earnings

Page 12 of 13

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,
	2015			2014		Percent Change			2015			2014		Percent Change
Income from continuing operations attributable to TSYS common shareholders	$	120,622			82,925		45.5	%	$	281,216			192,018		46.5	%
Adjust for amounts attributable to TSYS common shareholders:
Add: Acquisition intangible amortization, net of taxes	$	15,104			15,762		(4.2	)%		45,948			47,374		(3.0	)
Add: Share-based compensation, net of taxes		7,544			3,573		nm			21,018			15,174		38.5
Add: NetSpend M&A expenses, net of taxes*		—			786		nm			—			3,111		nm
Adjusted earnings	$	143,270			103,046		39.0	%	$	348,182			257,677		35.1	%
Deduct: Federal and state tax credits and related expenses, net of tax		(23,557	)		—		na			(23,557	)		—		na
Adjusted earnings without impact of one-time tax items	$	119,713			103,046		16.2	%	$	324,625			257,677		26.0	%
Basic EPS - Income from continuing operations attributable to TSYS common shareholders
As reported (GAAP)	$	0.66			0.45		46.7	%	$	1.53			1.03		48.2	%
Adjust for amounts attributable to TSYS common shareholders:
Add: Acquisition intangible amortization, net of taxes		0.08			0.08		(3.3	)		0.25			0.25		(1.8	)
Add: Share-based compensation, net of taxes		0.04			0.02		nm			0.11			0.08		40.1
Add: NetSpend M&A expenses, net of taxes*		—			0.00		nm			—			0.02		nm
Adjusted EPS **	$	0.78			0.56		40.2	%	$	1.89			1.38		36.8	%
Deduct: Federal and state tax credits and related expenses, net of tax		(0.13	)		—		na			(0.13	)		—		na
Adjusted EPS without impact of one-time tax items	$	0.65			0.56		17.2	%	$	1.76			1.38		27.5	%
Weighted average shares outstanding		183,954			185,577					184,320			186,559

* 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,
	2015			2014			Percent Change			2015			2014			Percent Change
Net income	$	122,051			85,198			43.3	%	$	284,325			248,163			14.6	%
Adjust for:
Deduct: Income from discontinued operations		—			(880	)		nm			—			(51,993	)		nm
Deduct: Equity in income of equity investments		(5,336	)		(4,135	)		(29.0	)		(15,309	)		(11,831	)		(29.4	)
Add: Income taxes		37,825			39,227			(3.6	)		119,204			94,333			26.4
Add: Nonoperating expense		8,564			9,997			(14.3	)		27,982			30,195			(7.3	)
Add: Depreciation and amortization		64,499			62,434			3.3			191,219			183,430			4.2
EBITDA	$	227,603			191,841			18.6	%	$	607,421			492,297			23.4	%
Adjust for:
Add: Share-based compensation		11,295			5,420			nm			31,468			23,019			36.7
Add: NetSpend M&A operating expenses		—			779			nm			—			3,213			nm
Adjusted EBITDA	$	238,898			198,040			20.6	%	$	638,889			518,529			23.2	%
Deduct: State tax credits and related expenses		(15,084	)		—			na			(15,084	)		—			na
Adjusted EBITDA without impact of one-time tax items	$	223,814			198,040			13.0	%	$	623,805			518,529			20.3	%

nm  =  not meaningful

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TSYS Announces Third Quarter 2015 Earnings

Page 13 of 13

Reconciliation of GAAP to Non-GAAP

Segment Operating Margin and Consolidated Adjusted Operating Margin

(unaudited)

(in thousands)

	Three Months Ended September 30, 2015									Three Months Ended September 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	$	113,946			293,571			38.81	%	$	92,736			240,957			38.49	%
International Services		18,370			86,446			21.25			15,976			87,385			18.28
Merchant Services		42,387			123,721			34.26			40,409			115,012			35.13
NetSpend		37,315			139,648			26.72			36,123			114,048			31.67
Intersegment		—			(7,000	)					—			(4,542	)
Corporate admin and other		(14,736	)								(25,428	)
Adjusted operating margin	$	197,282			636,386			31.00	%	$	159,816			552,860			28.91	%
Acquisition intangible amortization		(22,883	)								(24,210	)
NetSpend M&A operating expenses		—									(779	)
Share-based compensation		(11,295	)								(5,420	)
Operating income and margin*	$	163,104			636,386			25.63	%	$	129,407			552,860			23.41	%
Reimbursable items					71,504									64,031
Operating income and margin (US GAAP)	$	163,104			707,890			23.04	%	$	129,407			616,891			20.98	%
	Nine Months Ended September 30, 2015									Nine Months Ended September 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	$	324,902			846,989			38.36	%	$	251,892			698,543			36.06	%
International Services		38,706			244,033			15.86			32,274			248,890			12.97
Merchant Services		117,192			351,987			33.29			103,473			327,972			31.55
NetSpend		109,224			436,343			25.03			95,543			363,521			26.28
Intersegment		—			(25,098	)					—			(15,248	)
Corporate admin and other		(72,753	)								(75,278	)
Adjusted operating margin	$	517,271			1,854,254			27.90	%	$	407,904			1,623,678			25.12	%
Acquisition intangible amortization		(69,601	)								(72,805	)
NetSpend M&A operating expenses		—									(3,213	)
Share-based compensation		(31,468	)								(23,019	)
Operating income and margin*	$	416,202			1,854,254			22.45	%	$	308,867			1,623,678			19.02	%
Reimbursable items					208,444									188,096
Operating income and margin (US GAAP)	$	416,202			2,062,698			20.18	%	$	308,867			1,811,774			17.05	%

* Operating margin on revenue before reimbursable items

- ### -

EX-99.2

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

2015 Third Quarter and YTD Results

October 27, 2015

Exhibit 99.2

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

2015 Third 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 Third 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 Third 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

$707,890

$616,891

14.8

Total Revenues

$2,062,698

$1,811,774

13.8%

636,386

552,860

15.1

Revenues

Before Reimbursable Items

1,854,254

1,623,678

14.2

238,898

198,040

20.6

Adjusted EBITDA*

638,889

518,529

23.2

$0.78

$0.56

40.2

Adjusted EPS* from Continuing

Operations

$1.89

$1.38

36.8

(in thousands, except per share data)

3

rd

Qtr

2015

3

rd

Qtr

2014

Percent

Change

YTD

2015

YTD

2014

Percent

Change

6

2015 Third Quarter and YTD Results

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

7

Double digit revenue growth

Strong cross segment delivery of performance

Record volume gains

Expanding consolidated margins

45%

13%

20%

22%

Revenue by Segment*

North America

International

Merchant

NetSpend

$145.2

$113.9

$134.2

$159.8

$154.7

$154.5

$165.5

$197.3

27.6%

21.4%

24.9%

28.9%

27.2%

25.9%

26.6%

31.0%

4Q13

1Q14

2Q14

3Q14

4Q14

1Q15

2Q15

3Q15

($ in millions)

(*) Revenues Before Reimbursable Items

$525.3

$532.8

$538.1

$552.9

$569.3

$595.8

$622.1

$636.4

4Q13

1Q14

2Q14

3Q14

4Q14

1Q15

2Q15

3Q15

Consolidated

Revenue*

YOY Growth %

($ in millions)

37.3%

31.6%

Adjusted Operating Income

Operating Margin*

34.2%

8.5%

8.4%

11.8%

> 3Q 2015 CONSOLIDATED HIGHLIGHTS

15.6%

7

15.1%

2015 Third Quarter and YTD Results

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

8

Revenue

—

5th straight quarter record-setting results

Operating income

—

4th straight quarter record-setting results

Transactions increased to 4.2B

—

5th straight quarter record-setting volume

AOF at 685.5M; Traditional AOF up 36.9%

481.9

495.5

510.3

541.4

550.0

653.2

677.5

685.5

4Q13

1Q14

2Q14

3Q14

4Q14

1Q15

2Q15

3Q15

Accounts on File

YOY Growth

%

(in millions)

16.5%

13.4%

17.2%

17.1%

18.5%

19.1%

17.4%

18.1%

14.1%

16.6%

31.8%

49.4%

$87.1

$74.6

$84.6

$92.7

$99.6

$102.6

$108.4

$113.9

39.0%

33.2%

36.3%

38.5%

39.0%

38.5%

37.7%

38.8%

4Q13

1Q14

2Q14

3Q14

4Q14

1Q15

2Q15

3Q15

($ in millions)

(*) Revenues Before Reimbursable Items

$223.3

$224.4

$233.2

$241.0

$255.5

$266.2

$287.2

$293.6

4Q13

1Q14

2Q14

3Q14

4Q14

1Q15

2Q15

3Q15

Segment

Revenue*

YOY Growth %

($ in millions)

4.5%

Adjusted Segment Operating Income

Operating Margin*

9.1%

8.7%

10.9%

14.5%

18.7%

> 3Q 2015 NORTH AMERICA SEGMENT HIGHLIGHTS

(

) Growth Excluding Prepaid, Government Services and Single Use Accounts

32.8%

46.3%

23.1%

8

21.8%

26.6%

36.9%

59.1

60.7

62.5

64.1

66.6

70.5

73.9

74.9

4Q13

1Q14

2Q14

3Q14

4Q14

1Q15

2Q15

3Q15

Accounts on File

YOY Growth

%

(in millions)

8.5%

8.9%

7.5%

8.1%

12.7%

16.1%

2015 Third Quarter and YTD Results

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

9

Solid constant currency revenue growth trend

AOF increased 16.9%

Transactions increased 9.0%

Strong operating margin growth

Adjusted Segment Operating Income

Operating Margin*

$90.6

$76.8

$84.7

$87.4

$92.9

$73.7

$83.9

$86.4

4Q13

1Q14

2Q14

3Q14

4Q14

1Q15

2Q15

3Q15

Segment

Revenue*

YOY Growth %

$18.0

$4.6

$11.7

$16.0

$22.8

$7.0

$13.4

$18.4

19.9%

5.9%

13.9%

18.3%

24.6%

9.5%

15.9%

21.3%

4Q13

1Q14

2Q14

3Q14

4Q14

1Q15

2Q15

3Q15

($ in millions)

Reported

Constant

Currency

(*) Revenues Before Reimbursable Items

($ in millions)

9.0%

8.6%

0.5%

(4.6%)

10.6%

1.8%

12.2%

4.4%

2.5%

5.7%

(4.0%)

5.1%

> 3Q 2015 INTERNATIONAL SEGMENT HIGHLIGHTS

18.5%

(1.0%)

9.4%

9

(1.1%)

7.9%

16.9%

$62

$59

$62

$65

$64

$67

$71

$74

$48

$45

$46

$50

$44

$43

$46

$50

4Q13

1Q14

2Q14

3Q14

4Q14

1Q15

2Q15

3Q15

Segment Revenue by LOB

YOY Growth %

22%

(12%)

($ in millions)

4%

(14%)

1%

(10%)

4%

(2%)

(9%)

3%

(4%)

13%

16%

(0%)

14%

(1%)

Direct

Indirect

2015 Third Quarter and YTD Results

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

10

Revenue up 7.6%

Revenue mix: 60% Direct; 40% Indirect

SBS Sales Volume at $6.4B, up 9% YOY

POS transactions increased 11.1%, excluding

deconverted accounts

$110.4

$104.6

$108.3

$115.0

$107.7

$110.4

$117.9

$123.7

4Q13

1Q14

2Q14

3Q14

4Q14

1Q15

2Q15

3Q15

Segment

Revenue*

YOY Growth %

(*) Revenues Before Reimbursable Items

($ in millions)

4.3%

$36.0

$30.2

$32.9

$40.4

$31.4

$34.1

$40.7

$42.4

32.6%

28.8%

30.4%

35.1%

29.2%

30.9%

34.5%

34.3%

4Q13

1Q14

2Q14

3Q14

4Q14

1Q15

2Q15

3Q15

Adjusted Segment Operating Income

Operating Margin*

($ in millions)

(4.3%)

(4.1%)

1.2%

(2.4%)

5.5%

> 3Q 2015 MERCHANT SEGMENT HIGHLIGHTS

8.8%

10

7.6%

2015 Third Quarter and YTD Results

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

11

$4.0

$6.6

$4.6

$4.4

$4.7

$7.7

$5.5

$5.4

4Q13

1Q14

2Q14

3Q14

4Q14

1Q15

2Q15

3Q15

21.5%

22.1%

17.2%

16.6%

18.2%

16.7%

($ in billions)

Gross Dollar Volume

YOY Growth %

$104.1

$132.6

$116.8

$114.0

$119.2

$155.1

$141.6

$139.6

4Q13

1Q14

2Q14

3Q14

4Q14

1Q15

2Q15

3Q15

16.1%

13.1%

11.4%

10.0%

14.4%

16.9%

21.2%

22.4%

Adjusted Segment Operating Income

Operating Margin

Segment Revenue

YOY Growth %

($ in millions)

($ in millions)

$31.7

$28.7

$30.7

$36.1

$32.7

$35.5

$36.4

$37.3

30.5%

21.7%

26.3%

31.7%

27.5%

22.9%

25.7%

26.7%

4Q13

1Q14

2Q14

3Q14

4Q14

1Q15

2Q15

3Q15

> 3Q 2015 NETSPEND SEGMENT HIGHLIGHTS

19.5%

22.3%

Gross Dollar Volume (GDV) up 22.3%

Total active cards at 3.6M, up 18.1%

Direct deposit active cards at 1.8M, up 18.1%

Signed 3-year distribution agreement with Rite Aid

Extended

distribution

relationship

with

InComm

for

5 years

2015 Third 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

$113,946

$293,571

38.81%

International

18,370

86,466

21.25%

Merchant

42,387

123,721

34.26%

NetSpend

37,315

139,648

26.72%

Eliminations

--

(7,000)

Corporate administration excluding stock comp

(14,736)

--

Adjusted

operating margin

$197,282

$636,386

31.00%

Amortization of acquisition intangibles

(22,883)

Share-based compensation

(11,295)

Operating

income (US GAAP)

$163,104

(in thousands)

Three Months Ended September 30, 2015

2015 Third 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

$324,902

$846,989

38.36%

International

38,706

244,033

15.86%

Merchant

117,192

351,987

33.29%

NetSpend

109,224

436,343

25.03%

Eliminations

--

(25,098)

Corporate administration excluding stock comp

(72,753)

--

Adjusted

operating margin

$517,271

$1,854,254

27.90%

Amortization of acquisition intangibles

(69,601)

Stock-based compensation

(31,468)

Operating

income (US GAAP)

$416,202

(in thousands)

Nine Months Ended September 30, 2015

2015 Third 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

$175

Cap Ex

($40)

Debt Pmts

($16)

Dividends

($18)

Ending

Balance

$448

(in millions)

6/30/2015

9/30/2015

$400

Beginning

Balance

$349

Other

($2)

$600

2015 Third 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)

$833

$631

$426

$366

$448

$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)

2015 Third Quarter and YTD Results

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

Range

Range

Percent Change

$2,728

to

$2,746

11%

to

12%

Reimbursable Items

$2,463

to

$2,473

12%

to

13%

$2.43

to

$2.47

24%

to

26%

Shares

184

(in millions, except per share data)

(*) See Appendix for guidance assumptions

16

> 2015 REVISED GUIDANCE*

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

17

Q&A

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

18

Appendix

2015 Third Quarter and YTD Results

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

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.

19

> APPENDIX: Non-GAAP Items –

Adjusted EBITDA

and Adjusted EPS

2015 Third Quarter and YTD Results

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

20

Consumer Credit

373.6

263.9

41.5

373.6

374.1

(0.1

Retail

25.4

28.4

(10.3

)

25.4

26.4

(3.5

Total Consumer

399.0

292.3

36.5

399.0

400.5

(0.4

Commercial

44.1

41.5

6.0

44.1

44.0

0.3

Other

24.8

21.2

17.4

24.8

24.0

3.2

Subtotal

467.9

355.0

31.8

467.9

468.5

(0.1

Prepaid*/

Stored Value

133.8

125.1

6.9

133.8

133.1

0.4

Government

Services

78.7

66.7

18.0

78.7

77.1

2.1

Commercial Card

Single

Use

80.0

58.7

36.3

80.0

72.7

10.1

Total AOF

760.4

605.5

25.6

760.4

751.4

1.2

(in millions)

Sep

2015

Sep

2015

Sep

2014

Sep

2014

%

Change

%

Change

Sep

2015

Sep

2015

Jun

2015

Jun

2015

%

Change

%

Change

(* -

Prepaid does not include NetSpend accounts)

> APPENDIX: Accounts on File Portfolio Summary

21

2015 Third Quarter and YTD Results

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

> APPENDIX: Non-GAAP Reconciliation –

Revenues Before

Reimbursable Items

Three Months Ended                     Nine Months Ended

9/30/15               9/30/14

9/30/15                   9/30/14

Revenues

$707,890

$616,891

$2,062,698

$1,811,774

Items

71,504

64,031

208,444

188,096

Before Reimbursable Items

$636,386

$552,860

$1,854,254

$1,623,678

(in thousands)

22

2015 Third Quarter and YTD Results

©2015 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

9/30/15             9/30/14                                  9/30/15             9/30/14

Operating income

$163,104

$129,407

$416,202

$308,867

Add:

Acquisition

intangible amort

22,883

24,210

69,601

72,805

Add: Corporate admin and other

26,031

31,627

104,221

101,510

Total segment

adjusted operating income

$212,018

$185,244

$590,024

$483,182

By segment: North America services (a)

$113,946

$92,736

$324,902

$251,892

International services (b)

$18,370

$15,976

$38,706

$32,274

Merchant services (c)

$42,387

$40,409

$117,192

$103,473

NetSpend (d)

$37,315

$36,123

$109,224

$95,543

Total revenues

$707,890

$616,891

$2,062,698

$1,811,774

Reimbursable items

(71,504)

(64,031)

(208,444)

(188,096)

Total segment

revenues

before reimbursable items

$636,386

$552,860

$1,854,254

$1,623,678

Intersegment

revenues

7,000

4,542

25,098

15,248

By segment: North America services (e)

$293,571

$240,957

$846,989

$698,543

International services (f)

$86,446

$87,385

$244,033

$248,890

Merchant services (g)

$123,721

$115,012

$351,987

$327,972

NetSpend (h)

$139,648

$114,048

$436,343

$363,521

Adjusted segment operating margin:

North America services (a) / (e)

38.81%

38.49%

38.36%

36.06%

International services

(b) / (f)

21.25%

18.28%

15.86%

12.97%

Merchant services (c) / (g)

34.26%

35.13%

33.29%

31.55%

NetSpend (d) / (h)

26.72%

31.67%

25.03%

26.28%

(in thousands)

2015 Third 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

Nine

Months Ended

9/30/15        9/30/14

Percentage

Change

Three

Months Ended

9/30/15          9/30/14

Percentage

Change

(in thousands)

Consolidated:

Constant Currency (1)

$716,363

$616,891

16.1%

$2,088,418

$1,811,774

15.3

Foreign Currency

(2)

(8,473

---

(25,720

---

Total Revenues

$707,890

$616,891

14.8%

$2,062,698

$1,811,774

13.8

International

Services:

Constant Currency (1)

$100,512

$91,865

9.4%

$286,969

$264,710

8.4

Foreign Currency (2)

(8,335

---

(25,372

---

Total Revenues

$92,177

$91,865

0.3%

$261,597

$264,710

(1.2

2015 Third 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

Nine

Months Ended

9/30/15        9/30/14

Percentage

Change

Three

Months Ended

9/30/15          9/30/14

Percentage

Change

(in thousands)

Consolidated:

Constant Currency (1)

$644,364

$552,860

16.6%

$1,878,291

$1,623,678

15.7

Foreign Currency

(2)

(7,978

---

(24,037

---

Revenues before

reimbursable items

$636,386

$552,860

15.1%

$1,854,254

$1,623,678

14.2

International

Services:

Constant Currency (1)

$94,285

$87,385

7.9%

$267,721

$248,890

7.6

Foreign Currency (2)

(7,839

---

(23,688

---

Revenues before

Reimbursable Items

$86,446

$87,385

(1.1%)

$244,033

$248,890

(2.0

> APPENDIX: Non-GAAP Reconciliation –

EBITDA and

Adjusted EBITDA

2015 Third Quarter and YTD Results

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

25

(in thousands)

Three Months Ended

Nine

Months Ended

Sep

2015

Sep

2014

Sep

2015

Sep

2014

:

$122,051

$85,198

$284,325

$248,163

:

Deduct: Income from discontinued

operations

--

(880)

--

(51,993)

Deduct: Equity in Income of Equity

Investments

(5,336)

(4,135)

(15,309)

(11,831)

Add: Income Taxes

37,825

39,227

119,204

94,333

Add: Nonoperating expenses

8,564

9,997

27,982

30,195

Add: Depreciation and amortization

64,499

62,434

191,219

183,430

$227,603

$191,841

$607,421

$492,297

Add: Share-based compensation

11,295

5,420

31,468

23,019

Add: NetSpend

M&A expenses

--

779

--

3,213

$238,898

$198,040

$638,889

$518,529

Deduct: State tax credits and related

expenses

(15,084)

--

(15,084)

--

of state

tax credits and related expenses

$223,814

$198,040

$623,805

$518,529

2015 Third Quarter and YTD Results

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

26

> APPENDIX: Non-GAAP Reconciliation –

Adjusted EPS

(in thousands)

Three Months Ended

Nine Months Ended

Sep

2015

Sep

2014

Sep

2015

Sep

2014

from continuing operations available to TSYS

$120,622

$82,925

$281,216

$192,018

to TSYS common

Acquisition intangible amortization

15,104

15,762

45,948

47,374

Share-based compensation

7,544

3,573

21,018

15,174

NetSpend M&A expenses

--

786

--

3,111

$143,270

$103,046

$348,182

$257,677

expenses, net

of tax

(23,557)

--

(23,557)

--

of state tax credits and

related expenses (c)

$119,713

$103,046

$324,625

$257,677

and participating

183,954

185,577

184,320

186,559

Available to TSYS Common Shareholders

$0.66

$0.45

$1.53

$1.03

EPS Available to TSYS Common

$0.78

$0.56

$1.89

$1.38

EPS  without impact of tax credits Available

$0.65

$0.56

$1.76

$1.38

2015 Third Quarter and YTD Results

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

27

Trailing Twelve

Months Ended

9/30/2015

$630,640

Purchases

of

property

and

equipment

(57,062)

Additions to licensed computer software from vendors

(32,192)

Additions

to

internally

developed

computer

software

(41,893)

Additions to contract acquisition

costs

(73,303)

$426,190

(in thousands)

> APPENDIX: Non-GAAP Reconciliation –

Free Cash Flow

> APPENDIX: Non-GAAP Reconciliation –

EBITDA and

Adjusted EBITDA

2015 Third Quarter and YTD Results

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

28

Trailing Twelve

Months Ended

9/30/2015

Net Income

$365,567

Adjusted for:

Add: Discontinued operations

3,338

Deduct: Equity in Income of Equity Investments

(21,061)

Add: Income Taxes

154,632

Add: Nonoperating expense

36,499

Add: Depreciation and Amortization

254,410

EBITDA

$793,385

Adjust for: Share-based compensation

39,239

NetSpend M&A Operating Expenses*

3

Adjusted EBITDA

$832,627

(in thousands)

* Excludes share-based compensation

> APPENDIX: 2015 Revised Guidance Assumptions

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

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 Third Quarter and YTD Results

29