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TSYS Investor DayMay 24, 2017

WELCOME

©2017 Total System Services, Inc.® Proprietary. All rights reserved worldwide.

Forward-Looking Statements

This presentation and comments made by management contain forward-looking statements

including, among others, statements regarding the expected future operating results of TSYS.

These statements are based on management’s current expectations and assumptions and

are subject to risks, uncertainties and changes in circumstances. Forward-looking statements

include all statements that are not historical facts and can be identified by the use of

forward-looking terminology 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 2016 Annual Report on Form 10-K. TSYS disclaims any

obligation to update any forward-looking statement as a result of new information, future

developments or otherwise except as required by law.

2 ©2017 Total System Services, Inc.® Proprietary. All rights reserved worldwide.

Use of Non-GAAP Financial Measures

This slide presentation contains certain non-GAAP financial measures determined by

methods other than in accordance with generally accepted accounting principles. Such

non-GAAP financial measures include the following: net revenue, operating margin on net

revenue, revenues measured on a constant currency basis, free cash flow, EBITDA, adjusted

EBITDA, adjusted earnings per share, adjusted diluted earnings per share, adjusted segment

operating income and adjusted segment operating margin. The most comparable GAAP

measures to these measures include the following: revenues, operating margin, revenues,

cash flows from operating activities, net income, net income, earnings per share, 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.


AGENDA• STRATEGIC OVERVIEW

• STRATEGIC EXECUTION

Issuer Solutions

Merchant Solutions

Netspend

• FINANCIAL SUMMARY


STRATEGIC OVERVIEW

Troy WoodsChairman of the Board & Chief Executive Officer


Under One Roof

ENTERPRISE SCALE

80 countries11,500team members

25.5 billion transactions

$1.0 billion adj. EBITDA(1)

$12 billion enterprise value

$3.0 Billion in 2016 Net Revenue(1)

ISSUER

SOLUTIONS

49%

MERCHANT

SOLUTIONS

NETSPEND

29%

22%

(1) Non-GAAP financial measure; see appendix


Payments: A Growing Industry

Cards vs. Cash: Historical & Projected Spend Volume

$0

$2

$4

$6

$8

$10

2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

Cash

CAGR:

2010-16 2016-20

Cards 8% 7%

Cash 0% 0%

($ trillions)

U.S. market, source is McKinsey® payments map and TSYS analysis


TSYS Priorities

• CUSTOMER

• TEAM MEMBER

• CORPORATE

• SHAREHOLDER


Strong Financial Performance

Netspend

Net Revenue(1)

($millions)

2013 2014 2015 2016 2017G

Issuer Merchant

Adj. Diluted EPS(1)

2013 2014 2015 2016 2017G

Free Cash Flow(1)

($millions)

2013 2014 2015 2016 2017G

(1) Non-GAAP financial measure; see appendix. 2017 Figures are based on mid-point of revised guidance.


First Quarter 2017

SHAREHOLDER

– Financial Performance

TSYS PRIORITIES


NET REVENUE(1) +24.0%

ADJUSTED EBITDA(1)+24.4%

ADJUSTED DILUTED EPS(1)+25.4%


Total Shareholder Return

SHAREHOLDER


– Shareholder Return

TSYS PRIORITIES

28.1%

2014 – 2016

3-Year

TSR

50.9%

TSY

S

S&

P 5

00

5-Year

TSR

93.5%

2012 – 2016

160.9%

TSY

S

S&

P 5

00


2016

91.1%*

17.9%

$400 MMAccelerated Debt Payments

Share Repurchases & Dividends

As a % of Available FCF

94.4%

2014 2015

92.3%

12

SHAREHOLDER


– Shareholder Return

– Capital Allocation

TSYS PRIORITIES

* 17.9% of Available FCF was used for share repurchases and dividends and 73.2% of Available FCF was used for accelerated debt payments.


TSYS Customer Covenant

Through partnership and expertise, we’ll help

you unlock the possibilities of payments.

You can trust us to be honest and transparent,

and depend on us for stability and security.

We will hold ourselves to uncompromising

standards. We will never settle,

never make do. We will earn your trust,

and your business, every day.

13

CUSTOMER

TSYS PRIORITIES

– Client Experience

SHAREHOLDER


Voice of the CustomerExecute &

Communicate

Engage Client

Capture Feedback

Aggregate Information

Prioritize Insights

CLOSED LOOP CLIENT EXPERIENCE MODEL

14

SHAREHOLDER

TSYS PRIORITIES


CUSTOMER


Product Development

SHAREHOLDER

TSYS PRIORITIES


– Product Development

RISK & FRAUD

DIGITAL EXPERIENCES

CUSTOMER ACQUISITION

CUSTOMER


Technology Transformation

SHAREHOLDER

CUSTOMER

TSYS PRIORITIES

CORPORATE

– Technology

MAINFRAMES INFRASTRUCTURESYSTEMS


Compliance & RegulationTSYS PRIORITIES

– Technology

– Compliance &

Regulation

MAJOR COMPLIANCE

REGULATIONS

• U.S. FSG

• GLBA

• U.S.A. Freedom Act

• Bank Secrecy Act

• Foreign Corrupt Practices Act

• GDPR

• PCI-DSS

• U.S. Patriot Act

MAJOR REGULATORY

ENTITIES

• FFIEC

• SEC• Federal Trade Commission

• CFPB

• European Union

• PCI Security Standards Council

• Card Associations

SHAREHOLDER

CUSTOMER

CORPORATE


Data SecurityTSYS PRIORITIES

– Technology

– Compliance &

Regulation

– Data Security

Enterprise Global Oversight

In-House, 24x7 Team

Daily Incident Review Meetings

Annual Data Breach Response

Exercise

SHAREHOLDER

CUSTOMER

CORPORATE


Community-FocusedTSYS PRIORITIES

– Technology

– Compliance &

Regulation

– Data Security

– Community-Focused

SHAREHOLDER

CUSTOMER

CORPORATE


Team Member Priorities

TEAM MEMBER

TSYS PRIORITIES

– Attract, Retain &

Develop Talent

Talent

LeadershipGreat Work

Place– Develop Our Leaders

– Great Work Place

SHAREHOLDER

CUSTOMER

CORPORATE

Always GROWING,IMPROVING & MOVING

AHEAD


Our Core Values

Relationships

Integrity

Excellence

Innovation

Growth

TSYS PRIORITIES

TEAM MEMBER

CORPORATE

SHAREHOLDER

CUSTOMER


STRATEGIC EXECUTION

Pam JosephPresident & Chief Operating Officer


Accelerating Growth

Grow Share of Wallet

EXECUTION

EXECUTIONMOMENTUM

Capitalize on Industry Growth

Expand AddressableMarket

INNOVATION


Digitalization Creating Additional Opportunities

Changing consumer spending patterns & service preference

ISSUERSOLUTIONS

Transforming distribution & product offering

• ISV distribution

• Vertical focus

• PayFac Model

MERCHANTSOLUTIONS

Expanding access to financial solutions

NETSPEND


Partner of Choice

DISTRIBUTIONPARTNERS

Effective & Efficient Sales Channels

New Customer Segments

Ease of Integration

Speed to Market

PRODUCTPARTNERS

Leveraging TSYS as

Last Mile

Enhanced Offerings


Facilitate Innovation

Improve Efficiencies

Enhancing Technology to Win

Increase Ease of Connectivity


Segment Presentations

ISSUERSOLUTIONS

MERCHANTSOLUTIONS

NETSPEND

OVERVIEW

GROWTH INITIATIVES• Business evolution• Product expansion• Leveraging partnerships

MARKET OPPORTUNITIES


ISSUER SOLUTIONS

Gaylon JowersSenior Executive Vice President & President, Issuer Solutions


ISSUERSOLUTIONS

OVERVIEW

– Scale & Leadership

NET REVENUE(1)

~$1.5 billion

ADJUSTEDMARGIN(1)

~35%

RECURRING REVENUES

~94%762 millionaccounts on file

#1 in China,via CUP Data JV

#2 in Europe

#1 in North America



ISSUERSOLUTIONS

OVERVIEW


– Who We Serve

FINANCIAL INSTITUTIONS

RETAILERS


SERVICES

PROCESSING

BACK OFFICE

CUSTOMER ENGAGEMENT

ANALYTICS

LOYALTY

EPAYABLES

• Consumers

• Small Businesses

• Corporations

RISK & FRAUD

CARD & PRINT

Industry-Leading Suite ofIntegrated Solutions

ISSUERSOLUTIONS

OVERVIEW


– Who We Serve

– What We Provide


Annual Issuer Spend = ~$7 billionon processing and TSYS traditional offerings

OVERVIEW

MARKET OPPORTUNITY

ISSUERSOLUTIONS

EXPAND ADRESSABLE MARKET

• Marketing and customer acquisition

• Digital experiences and self-service

$1.5BTSYS Net

Revenue(1)

Source is McKinsey® Payments Map and TSYS analysis, for North America and Western Europe.

$5.5BOpportunity

Growing at ~3% CAGR through 2020



InitiativesISSUERSOLUTIONS

OVERVIEW

MARKET OPPORTUNITY

GROWTH INITIATIVES

– Business Evolution

Cost optimization

Integration of North America & International

Client engagement model

Fine-tuning sales & business development engine


ISSUER SOLUTIONS

Karim AhmadExecutive Vice President, Global Product & Innovation


Industry Situation: ChallengesISSUERSOLUTIONS

OVERVIEW

MARKET OPPORTUNITY

Increase Customer Loyalty While Reducing Cost

Digital Interaction Driving Changes In Fraud

Source: Bain & Company®, Customer Loyalty in Retail Banking 2016 Source: U.S. CNP Fraud, Aite, February 2016. U.S. Payment

Card Volume, Nilson, October 2016

Avg.Customer

$4.00

$0.10

12%increase

2015-2020

CNPFraud

125%

CNP PurchaseVolume

43%

DigitalUsers

In-Person Digital

CUSTOMER LOYALTY COST PER CONTACT


+$7billion

$5.2billion

Significant Spend Directed at Solving these Challenges

ISSUERSOLUTIONS

OVERVIEW

MARKET OPPORTUNITY

Fraud & Risk Management

Customer Acquisition &

Retention

Digitalization of Customer Experiences

Capability Expansion DOUBLES Our Available Market


Partner to Deliver Products to Market FasterISSUERSOLUTIONS

OVERVIEW

MARKET OPPORTUNITY

GROWTH INITIATIVES

– Leveraging Partnerships

Improved CallResolution Time

TSYS Customer Service

70% Enhancementin CNP Fraud Detection

TSYS Foresight Score℠

with Featurespace®

30% Reduced Overall Chargebacks

TSYS Transaction Recovery Network℠

Powered by Ethoca®

40%


DATA & ANALYTICS

Product Priorities: 2017-2020ISSUERSOLUTIONS

OVERVIEW

MARKET OPPORTUNITY

GROWTH INITIATIVES


– Product Expansion

Risk & Fraud Marketing

& Customer Acquisition

Digital Experiences

& Self-Service

• Business Insights & Benchmarking• Predictive Analytics• Enterprise Efficiencies


QUESTIONS


MERCHANT SOLUTIONS

Pam JosephPresident & Chief Operating Officer


MERCHANTSOLUTIONS

OVERVIEW


#6 U.S. merchant acquirer

#3 in integrated payments

1,200 distribution partners

657,000 merchant locations

4.5 billion transactions

INTEGRATEDCHANNEL

~30%

NET REVENUE(1)

~$0.9 billion

ADJUSTEDMARGIN(1)

~34%



INDUSTRIES

SALON & SPA

HEALTHCARE

GOVERNMENT

BUSINESS SERVICES

WELLNESS

GENERAL RETAIL

ECOMMERCE & B2B

MERCHANTSOLUTIONS

OVERVIEW


– Who We Serve

• Micro-Merchant

• Small Business

• Mid Market

• National

Diversified Base of Business


MERCHANTSOLUTIONS

OVERVIEW


– Who We Serve

– What We Provide

VALUE-ADDED SOLUTIONS

• Analytics and reporting

• Loyalty and marketing offers

• Security

POS SOLUTIONS

• Terminal

• Tablet POS

• eCommerce

• Integrated services

PAYMENT TYPES

• Credit

• Debit

• Prepaid

• Check

• Mobile wallet

• ACH

• PayPal®

• Cash

BUY

SELL


MERCHANTSOLUTIONS

OVERVIEW


– Who We Serve

– What We Provide

– How We Go to Market

INTEGRATED PARTNERS

FINANCIAL INSTITUTION PARTNERS

DIRECT


$0.9BTSYS Net

Revenue(1)

$17BOpportunity

MERCHANTSOLUTIONS

OVERVIEW

MARKET OPPORTUNITY

Source is McKinsey® Payments Map and TSYS analysis. Growth rates are CAGRs from 2016 through 2020.

U.S. Merchant Acquiring Revenues = ~$18B

Market Growth

~12%

~10%

~5%

Integrated Payments

eCommerce

Acquiring Industry

EXPAND ADDRESSABLE MARKET

BUSINESS SOFTWARE

• Vertical-market business software

VALUE ADDED SERVICES

• Closed commerce solution

• Expanded analytics and insights



MERCHANTSOLUTIONS

OVERVIEW

MARKET OPPORTUNITY

GROWTH INITIATIVES


Capturing the Revenue Benefits of TransFirst Integration

• Revenue growth

• Scalability

TARGET END STATE

One Platform

Universal Boarding

UnifiedProduct Suite

Partner-CentricDistribution

Model

• Customer experience

• Expense synergies

BENEFITS


Value Added

Services

MERCHANTSOLUTIONS

OVERVIEW

MARKET OPPORTUNITY

GROWTH INITIATIVES



Product Priorities: 2017-2020

EnhanceSmart

Point-of-sale

Payment Facilitation &

Disbursements

Vertical Market

Software


MERCHANT SOLUTIONS

Philip McHughSenior Executive Vice President & President, Merchant Solutions


QUESTIONS


NETSPEND

Chuck HarrisSenior Executive Vice President & President, Netspend


OVERVIEW


#1 U.S. provider of prepaid debit cards(measured by GDV)

DIRECT DEPOSITCARDS

~55%

NET REVENUE(1)

~$0.7 billion

ADJUSTEDMARGIN(1)

~24%

$28.7 billion in GDV

5.1 million active cards

2.9 million direct deposit

130,000+ reload locations

100,000+ distribution employers & locations

NETSPEND



Self-Banking Solutions NETSPEND

OVERVIEW


– Who We Serve

– What We Provide

• Consumers

• Small Businesses

• Employers

DDA

GPR

COMMERCIAL

INCENTIVES/

DISBURSEMENTS

PAYCARD

MOBILEVIRTUAL

OFFERS

DIRECTDEPOSIT

P2PTRANSFERS

REMOTEDEPOSITCAPTURE

FDIC-INSURED


OVERVIEW


– Who We Serve

– What We Provide

– How We Go to Market

Leveraging Partners to Reach Customers

DIRECT

COMMERCIAL RETAIL

PARTNER

NETSPEND


http://www.google.com/imgres?imgurl=http://reporter.blogs.com/photos/uncategorized/2008/05/19/cracker_barrel_2.gif&imgrefurl=http://www.pastdeadline.com/hbo/&h=433&w=800&sz=37&tbnid=zF_aQD417eXEzM:&tbnh=77&tbnw=143&prev=/images?q=cracker+barrel+logo&usg=__0SOlX7a2wJW3EZ_yZZ27bF8aTe8=&ei=vq7RS8GAIojM8wSz-7XKDw&sa=X&oi=image_result&resnum=4&ct=image&ved=0CBAQ9QEwAw

OVERVIEW

MARKET OPPORTUNITY

Source is McKinsey® Payments Map, Euromonitor® & TSYS Analysis.

Growing at ~5% CAGR through 2020

U.S. GPR & PaycardPrepaid Revenue = ~$4B

EXPAND ADDRESSABLEMARKET

$0.7B

$3.3BOpportunity

TSYS Net Revenue(1)

CONSUMER

• DDA

• Affinity partnerships

• Mobile Hub

BUSINESS

• Commercial GPR

• Paycard for contractors

• Incentive and disbursement

• Tips


NETSPEND


Providing a Digital Financial Solutionfor Retailers

OVERVIEW

MARKET OPPORTUNITY

GROWTH INITIATIVES



MONEY TRANSFER

FREE ATMsAT 7-ELEVEN

MOBILE WALLETREFILL

GIFT CARDS

7REWARDSSM

IN STOREBILL PAY

TRANSIT

SAVINGSPROGRAM

130K+ RELOADLOCATIONS

P2PTRANSFERS

FDIC-INSURED

ANYTIME ALERTS

DIRECTDEPOSIT

GPR

NETSPEND


OVERVIEW

MARKET OPPORTUNITY

GROWTH INITIATIVES



Leveraging the Power of TSYSfor Micro & Small Businesses

NETSPEND

SUB-ACCOUNTSCATEGORY SPENDCONTROLS

ACCEPT CARD PAYMENTS

BUSINESS NAME ON THE CARD

130K+ RELOADLOCATIONS

P2PTRANSFERS

FDIC-INSURED

COMMERCIAL GPR

REMOTE DEPOSITCAPTURE

DIRECTDEPOSIT

ANYTIME ALERTS EXPORT TAX

DATA


QUESTIONS


FINANCIAL SUMMARY

Paul ToddSenior Executive Vice President & Chief Financial Officer


Strong Financial Performance

Netspend

Net Revenue(1)

($millions)

2013 2014 2015 2016 2017G

Issuer Merchant

Adj. Diluted EPS(1)

2013 2014 2015 2016 2017G

Free Cash Flow(1)

($millions)

2013 2014 2015 2016 2017G

(1) Non-GAAP financial measure; see appendix. 2017 Figures are based on mid-point of revised guidance.


Affirming 2017 Revised Guidance*

TOTAL REVENUES (GAAP)

$4,770 to $4,870

millionRANGE PERCENT CHANGE

14% to 17%

NET REVENUE(1)

$3,295 to $3,395

millionRANGE PERCENT CHANGE

8% to 12%

ADJUSTED DILUTEDEARNINGS PER SHARE(1)

$3.16 to $3.26

RANGE PERCENT CHANGE

13% to 17%

DILUTED EARNINGSPER SHARE (GAAP)

$2.25 to $2.32

RANGE PERCENT CHANGE

30% to 34%

Weighted Average Diluted Shares Outstanding = 185 million


* See guidance assumptions in appendix


Accelerating Growth

Grow Share of Wallet

EXECUTION

EXECUTIONMOMENTUM

Capitalize on Industry Growth

Expand AddressableMarket

INNOVATION


Longer-Term Financial Outlook

INDUSTRY

~3%+CAGR

TSYS

5-7%CAGR(1)

GROW WALLET SHARE

• Cross-selling and new client wins

• Risk and fraud management


• Enhanced digital experiences

• Marketing and customer acquisition

UPSIDE

(1) Non-GAAP financial measure; constant currency; see appendix

ISSUER SOLUTIONS



MERCHANT SOLUTIONS

INDUSTRY

~5%+CAGR

TSYS

7-9%CAGR(1)

GROW WALLET SHARE

• Grow distribution partnerships

• Merchant sales execution

• Smart POS

• Payment facilitation and disbursements


• Vertical market software

• Expanded analytics and insights

UPSIDE




INDUSTRY

~5%CAGR

TSYS

6-8%CAGR(1)

GROW WALLET SHARE

• Grow existing distribution channels

• Mobile Hub

• DDA as a complement to GPR


• DDA upside

• Affinity partnerships

• Business solutions

UPSIDE

NETSPEND



Longer-Term Financial OutlookStrategy Drives Long-Term Organic Growth


5% - 7%

7% - 9%

6% - 8%

6% - 8%

SEGMENT LONG-RANGE ANNUAL TARGETS

SEGMENT

Issuer

Merchant

Netspend

~3%

~5%+

~5%

TOTAL

ORGANIC NET

REVENUE GROWTH(1)

ANNUAL MARKET

GROWTH

CONSOLIDATED LONG-RANGE ANNUAL TARGETS

Organic Net Revenue Growth(1)

Adj. EBITDA Margin Growth(1)

Adj. Diluted EPS Growth(1)

(including share repurchases)

6% - 8%

~25-50 bps annually

9% - 13%


Creating Value through Capital Allocation

Returning Capital

to Shareholders

Share Repurchases& Dividends

•Target to return 75% of available free cash flow in share repurchases and dividends

Investing

in Growth

Internal Investments& Acquisitions

•New products

•Technology enhancements

•Future acquisitions

Leveraging

Strong Balance

Sheet

Long-Term LeverageTarget of ~2.5x

•De-leveraging on track


Capital Deployment for Growth

Capital Expenditures $582 million

Share Repurchases $432 million

Acquisitions $2.4 billion

Represents 2014 - 2016


Investment Value Drivers

Solid Long-Term Organic Growth

Consistent Adjusted Diluted EPS Growth

Margin Expansion

Long-Term Contracts

High Recurring Revenue

Strong Free Cash Flow Generation

Shareholder-Friendly Capital Allocation

Investment-Grade Balance Sheet

Attractive Valuation


QUESTIONS


THANK YOU

Unlocking opportunitiesin payments.


APPENDIX


Twelve Months

Ended

12/31/16

Net income :

As reported (GAAP) $325,972

Adjust for:

Deduct: Income from discontinued operations --

Deduct: Equity in income of equityinvestments (25,933)

Add: Income taxes 161,175

Add: Nonoperating expense 112,168

Add: Depreciation and amortization 373,546

EBITDA $946,928

Adjust for:

Add: Share-based compensation 43,728

Add: TransFirst M&A expenses(1)

28,175

Add: Litigation, claims, judgments or settlements 21,719

Adjusted EBITDA $1,040,550

Appendix: Non-GAAP ReconciliationEBITDA & Adjusted EBITDA

(in thousands)

(1) Costs associated with the TransFirst acquisition and integration that are included in selling, general and administrative expenses.


Appendix: Non-GAAP ReconciliationNet Revenue

Twelve Months Ended

12/31/16 12/31/15 12/31/14 12/31/13

Total revenues $4,170,077 $2,779,541 $2,446,877 $2,064,305

Less: reimbursable items,

interchange and assessments

expenses* 1,128,201 280,192 253,899 240,597

Net revenue $3,041,876 $2,499,349 $2,192,978 $1,823,708

(in thousands)

* Relates to acquisition of TransFirst, which closed April 1, 2016


Twelve Months Ended

12/31/16 12/31/15 12/31/14 12/31/13

Income from continuing operations attributable to TSYS common shareholders:

As reported (GAAP) (a) $319,638 $362,633 $275,216 $246,893

Adjusted for amounts attributable to TSYS common shareholders:

Add: Acquisition intangible amortization 188,887 91,418 95,743 63,821

Add: Share-based compensation 43,691 41,535 30,790 28,933

Add: TransFirst & Netspend M&A expenses(1)

37,957 -- 3,217 19,594

Add: Litigation, claims, judgments and settlements 19,913 -- -- --

Less: Tax impact of adjustments(2)

(93,667) (43,474) (40,564) (33,524)

Adjusted earnings (b) $516,419 $452,112 $364,402 $325,717

Weighted average diluted shares outstanding and participating securities (c)

184,448 185,239 187,681 190,039

Diluted EPS - income from continuing operations available to TSYS common shareholders (a) / (c)

$1.73 $1.96 $1.47 $1.30

Adjusted diluted EPS- income from continuing operations available to TSYS common shareholders (b) / (c)

$2.80 $2.44 $1.94 $1.71

Appendix: Non-GAAP ReconciliationAdjusted EPS

(in thousands, except per share data)

(1) Costs associated with the TransFirst acquisition and integration that are included in selling, general and administrative expenses and nonoperating expenses. (2) Certain of these merger and acquisition costs are nondeductible for income tax purposes. Income tax impact includes a discrete item as a result of the acquisition.


Appendix: Non-GAAP ReconciliationFree Cash Flow

75

Twelve Months Ended

12/31/2016 12/31/2015 12/31/2014 12/31/2013

Cash flows from operating activities $717,909 $600,194 $560,201 $452,398

Less:

Capital expenditures (142,573) (203,315) (235,315) (193,798)

Free cash flow $575,336 $396,879 $324,278 $258,600

(in thousands)

©2017 Total System Services, Inc.® Proprietary. All rights reserved worldwide. 75

Appendix: Non-GAAP ReconciliationAdjusted Segment Operating Income & Operating Margin

(in thousands)

Twelve

Months

Ended

12/31/16

Adjusted segment operating income

By segment: Issuer Solutions (a) $525,025

Merchant Solutions (b) 307,595

Netspend (c) 160,371

Less: Acquisition intangible amortization (189,991)

Less: Corporate admin and other (179,724)

Less: TransFirst M&A expenses(1) (28,175)

Less: Litigation, claims, judgments or

settlements(21,719)

Operating income $573,382

Net revenue

By segment: Issuer Solutions (d) $1,515,462

Merchant Solutions (e) 898,533

Netspend (f) 663,579

Less: Intersegment revenues (35,698)

Add: Reimbursable items, interchange and

assessments expenses 1,128,201

Total revenues $4,170,077

Adjusted segment operating margin:

Issuer Solutions (a) / (d) 34.64%

Merchant Solutions (b) / (e) 34.23%

Netspend (c) / (f) 24.17%



Appendix: 2017 Revised Guidance*

RangeRange

Percent Change

Revenue:

$4,770 to $4,870 14 % to 17 %Total revenues (GAAP)

Net revenue(1) (non-GAAP) $3,295 to $3,395 8% to 12%

Earnings per share (EPS) :

30% to 34%Diluted EPS (GAAP) $2.25 to $2.32

Adjusted diluted EPS attributable to

TSYS common shareholders(1) (non-

GAAP) $3.16 to $3.26 13% to 17%

Weighted average diluted shares

outstanding 185

(in millions, except per share data)

*See guidance assumptions in appendix


Appendix: Non-GAAP ReconciliationNet Revenue

Three Months Ended

3/31/17 3/31/16

Total revenues $1,184,725 $739,378

Less: reimbursable items, interchange and assessments

expenses* 351,833 67,734

Net revenue $832,892 $671,644

(in thousands)

* Relates to acquisition of TransFirst, which closed April 1, 2016


Three Months Ended

3/31/17 3/31/16

Net income :

As reported (GAAP) $107,107 $92,408

Adjust for:

Less: Equity in income of equityinvestments (12,909) (6,248)

Add: Income taxes 43,082 43,429

Add: Nonoperating expense 29,903 22,098

Add: Depreciation and amortization 104,178 67,583

EBITDA $271,361 $219,270

Adjust for:

Add: Share-based compensation 9,047 8,158


4,868 3,401

Add: Litigation, claims, judgments or settlements 1,961 --

Adjusted EBITDA $287,237 $230,829

Appendix: Non-GAAP ReconciliationEBITDA & Adjusted EBITDA

(in thousands)



Three Months Ended

3/31/17 3/31/16

Income from continuing operations attributable to TSYS common shareholders:

As reported (GAAP) (a) $105,868 $90,628

Adjust for amounts attributable to TSYS common shareholders:

Add: Acquisition intangible amortization 55,002 22,645

Add: Share-based compensation 9,041 8,149


4,825 13,183

Add: Litigation, claims, judgments and settlements 1,961 --

Less: Tax impact of adjustments(2)

(24,432) (13,895)

Adjusted earnings (b) (non-GAAP) $152,265 $120,710

Weighted average diluted shares outstanding (c) 184,938 183,886

Diluted EPS – Net income attributable to TSYS common shareholders (a) / (c) (GAAP)

$0.57 $0.49

Adjusted diluted EPS- Net income attributable to TSYS common shareholders (b) / (c) (non-GAAP)

$0.82 $0.66

Appendix: Non-GAAP ReconciliationAdjusted Diluted EPS

(in thousands, except per share data)

(1) Costs associated with the TransFirst acquisition and integration that are included in selling, general and administrative expenses and nonoperating expenses. (2) Certain of these merger and acquisition costs are nondeductible for income tax purposes. Income tax impact includes a discrete item as a result of the acquisition.


Appendix: 2017 Revised Guidance Assumptions

The 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 additional 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 other than

as previously disclosed; and

• The economy will not worsen.

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


Appendix

The Company has not provided a quantitative reconciliation for the

longer-term growth targets contained in this slide presentation to the

most directly comparable GAAP measures as a reconciliation cannot

be provided without unreasonable efforts because management

cannot reliably predict the necessary components of such measures.


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