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2011 Third Quarter Results

2011 Third Quarter Results. October 25, 2011. Forward-Looking Statements.

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2011 Third Quarter Results

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  1. 2011 Third Quarter Results October 25, 2011

  2. Forward-Looking Statements This presentation and comments made by management contain forward-looking statements including, among others, statements regarding the expected future operating results of TSYS. These statements are based on management’s current expectations and assumptions and are subject to risks, uncertainties and changes in circumstances. Forward-looking statements include all statements that are not historical facts and can be identified by the use of forward-looking terminology such as the words “believe,” “expect,” “anticipate,” “intend,” “plan,” “estimate” or similar expressions. Actual results may differ materially from those set forth in the forward-looking statements due to a variety of factors. More information about these risks, uncertainties and factors may be found in TSYS’ 2010 Annual Report on Form 10-K, Quarterly Reports on Form 10-Q and Current Reports on Form 8-K. TSYS does not assume any obligation to update any forward-looking statements as a result of new information, future developments or otherwise. ©2011 Total System Services, Inc.® Proprietary. All rights reserved worldwide.

  3. Use of Non-GAAP Financial Measures This slide presentation contains certain non-GAAP financial measures determined by methods other than in accordance with generally accepted accounting principles. Such non-GAAP financial measures include the following: revenues before reimbursable items; operating margin excluding reimbursable items; revenues measured on a constant currency basis; the impact of termination fees on total revenues, operating income, income from continuing operations, and earnings per share from continuing operations; free cash flow; and EBITDA. The most comparable GAAP measures to these measures are revenues; operating margin; revenues; revenues, operating income, income from continuing operations and earnings per share from continuing operations; cash flows from operating activities; and net income, 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. ©2011 Total System Services, Inc.® Proprietary. All rights reserved worldwide.

  4. Phil Tomlinson Chairman and Chief Executive Officer

  5. Jim Lipham Chief Financial Officer

  6. Consolidated Selected Financial Highlights (in thousands, except per share data) 3rd Qtr 2010 Percent Change 3rd Qtr2011 YTD 2010 Percent Change YTD 2011 ©2011 Total System Services, Inc.® Proprietary. All rights reserved worldwide.

  7. 2011 YTD Revenue ChangeRevenues Before Reimbursable Items 25% 20% 15% Currency 1.5% Acquisitions Lost Business, Non-recurring Items and Price Compression 10% New Clients 3.6% Reported Internal Growth 2.6% 5% 6.0% (5.8%) 4.1% 0% ©2011 Total System Services, Inc.® Proprietary. All rights reserved worldwide.

  8. Consolidated Accounts on File Portfolio Summary (in millions) Sep 2011 Sep 2011 Sep 2010 Jun 2011 %Change %Change ©2011 Total System Services, Inc.® Proprietary. All rights reserved worldwide.

  9. 3Q 2011 Year Over Year Segment Financial Highlights Revenues$243.9 million Excluding Reimbursables $206.1 million Operating Income$68.0 million Operating Margin27.9% Excluding Reimbursables 33.0% Same Client Transactions 1,867.6 millionIncrease of 12.7% North AmericaServices Key Drivers • Strong organic growth • Increased volumes • Volumes • Accounts on file were 341.9 million • Total cardholder transactions were 1,872.8 million, an increase of 12.9% ©2011 Total System Services, Inc.® Proprietary. All rights reserved worldwide.

  10. 3Q 2011 Year Over Year Segment Financial Highlights Revenues$99.9 million Constant currency basis $95.0 million Operating Income$8.3 million Operating Margin8.3% Excluding Reimbursables 8.6% Same Client Transactions 347.5 millionIncrease of 7.8% InternationalServices • Favorable currency impact on revenues of $4.9 million • Conversion of new clients • Volumes • Accounts on file were 50.5 million • Total cardholder transactions were 360.5 million, an increase of 11.7% Key Drivers ©2011 Total System Services, Inc.® Proprietary. All rights reserved worldwide.

  11. 3Q 2011 Year Over Year Segment Financial Highlights Revenues$122.9 million Excluding Reimbursables $93.2 million Operating Income$27.4 million Operating Margin22.3% Excluding Reimbursables 29.4% MerchantServices • Acquisition of TermNet • Decline in revenues associated with deconverted clients • Volumes • Point-of-Sale Transactions were 1,263.3 million, a decrease of 6.1% • Excluding deconverted clients, Point-of-Sale Transactions increased 5.1% Key Drivers ©2011 Total System Services, Inc.® Proprietary. All rights reserved worldwide.

  12. Cash Flow Strength: 2011 TTM Consolidated Financial Highlights (in millions) TTM = Trailing Twelve Months ©2011 Total System Services, Inc.® Proprietary. All rights reserved worldwide.

  13. Revised 2011 Guidance (in millions, except per share data) RangeChange Range Percent Change ©2011 Total System Services, Inc.® Proprietary. All rights reserved worldwide.

  14. Appendix

  15. Appendix Non-GAAP Reconciliation – Revenues Before Reimbursable Items (in thousands) Three Months Ended Nine Months Ended 9/30/11 9/30/109/30/11 9/30/10 ©2011 Total System Services, Inc.® Proprietary. All rights reserved worldwide.

  16. Appendix Non-GAAP Reconciliation – Segment Operating Margin Excluding Reimbursable Items (in thousands) North America International Merchant Three Months Ended9/30/11 9/30/10 Three Months Ended9/30/11 9/30/10 Three Months Ended 9/30/11 9/30/10 ©2011 Total System Services, Inc.® Proprietary. All rights reserved worldwide.

  17. Appendix Non-GAAP Reconciliation – Constant Currency (in thousands) Nine Months Ended 9/30/11 9/30/10 Percentage Change Three Months Ended 9/30/11 9/30/10 Percentage Change (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. ©2011 Total System Services, Inc.® Proprietary. All rights reserved worldwide.

  18. Appendix Non-GAAP Reconciliation – EBITDA (in thousands) Trailing Twelve Months Ended9/30/2011 ©2011 Total System Services, Inc.® Proprietary. All rights reserved worldwide.

  19. Appendix Non-GAAP Reconciliation – Free Cash Flow (in thousands) Trailing Twelve Months Ended9/30/2011 ©2011 Total System Services, Inc.® Proprietary. All rights reserved worldwide.

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