investor presentation - first data · in the appendix of this presentation for a more detailed list...

© 2015 First Data Corporation. All Rights Reserved.

Investor Presentation


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Disclaimer

2

This presentation was prepared on April 29, 2016 and represents the information available to us on that

date. We assume no obligation to update this information to reflect events or circumstances that occur

after that date. This presentation contains forward-looking statements that involve substantial risks and

uncertainties. All statements, other than statements of historical facts, contained in this presentation,

including statements regarding our strategy, future operations, future financial position, future revenues,

projected costs, prospects, plans and objectives of management, are forward-looking statements. The

words “anticipate,” “believe,” “estimate,” “expect,” “intend,” “may,” “plan,” “predict,” “project,” “target,”

“potential,” “will,” “would,” “could,” “should,” “continue,” and similar expressions are intended to identify

forward-looking statements, although not all forward-looking statements contain these identifying words.

We may not actually achieve the plans, intentions or expectations disclosed in our forward-looking

statements, and you should not place undue reliance on our forward-looking statements. Actual results

or events could differ materially from the plans, intentions and expectations disclosed in the forward-

looking statements we make. Please refer to the company’s meaningful cautionary statements contained

in the appendix of this presentation for a more detailed list of risks and uncertainties which could cause

actual events or results to differ materially from those projected. The forward-looking statements

contained in this presentation reflect our views on the date of this presentation with respect to future

events, and we assume no obligation to update any forward-looking statements.

In addition to U.S. GAAP financials, this presentation includes certain non-GAAP financial measures.

These non-GAAP measures are in addition to, not a substitute for or superior to, measures of financial

performance prepared in accordance with U.S. GAAP. Reconciliations of non-GAAP measures to GAAP

measures is contained in the Appendix on slides 25 - 29.

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Overview

3

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6 Million Business Locations

#1 Merchant Acquirer

118 Countries With First Data Clients

4,000 Financial Institutions

#1 Issuer Processor

36 Countries With First Data Operations

1 Million STAR Locations

#1 Independent Network

~2,300 Direct Sales Associates

79 Billion 2015 Global Transactions Processed

28% Of Global eCommerce

Processed in 2015

~36,000 Bank Branches Globally Distributing

First Data’s Solutions

4

First Data in Summary

Scale Leadership Footprint

Over 2,500 Client Transactions Processed Per Second

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Data refers to 2015


5

Transforming First Data Executing on our strategy

Client Centric Approach • Focus on growing clients’ businesses

• Offering integrated solutions

Equity Ownership for All • 24,000 “Owner Associates”

Management Change • New, experienced management team

transforming the business

Innovation • Multiple next-gen commerce solutions

delivered and in the pipeline

Grand Collaborator • Partnered on innovations with major and

emerging networks, prominent global FIs,

marquee brands, and leading tech companies

Improved Financial

Performance & Capital

Structure

• Improved revenue growth since 2013

• Revamped balance sheet

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North America

78%

EMEA 13%

APAC 5%

LATAM 4%

Global Business Solutions Overview

6

Business Overview Financial Overview

• 6M business locations served

‒ 4M in U.S.

‒ 2M outside U.S.

• Clients in 84 countries

‒ 167 authorization currencies

‒ 18 settlement currencies

• 50 billion transactions processed globally

• Unparalleled distribution network

• Commerce solutions for businesses of all

sizes:

‒ Core Acquiring (Processing, POS, Security)

‒ eCommerce Solutions

‒ Digital / Mobile Commerce

‒ Cross-Border / Multi-Currency Solutions

‒ Business Intelligence & Analytics

‒ Business Management Apps

• High levels of recurring revenues

2015 FDC Segment Revenue: $7.0B

2015 GBS Revenue: $4.0B

GBS 58% NSS

21%

GFS 21%


North America

59%

EMEA 29%

APAC 5%

LATAM 7%

Global Financial Solutions Overview

7

Business Overview Financial Overview

• Empower bank and non-bank financial

institutions to provide financial products and

solutions (credit, debit, loans, prepaid) to

their customers

• Our comprehensive solution suite includes:

‒ Issuer processing

‒ Licensed processing software

‒ Plastics personalization services

‒ Statements & letters

‒ Other core bank services

• #1 in global issuer processing

• 960M card accounts on file (AOF) globally

• Relationships with over 1,400 financial

institutions globally, including many leading

banks

• Clients served in 90 countries

2015 FDC Segment Revenue: $7.0B

2015 GFS Revenue: $1.5B

GBS 58% NSS

21%

GFS 21%


Network & Security Solutions Overview

8

Financial Overview

Stored

Value

Network

25%

Security &

Fraud

28%

EFT Network

34% Other 13%

2015 FDC Segment Revenue:

$7.0B

2015 NSS Revenue:

$1.5B • EFT Network

STAR Network, Debit Processing, ATM

• Stored Value Network Accounts, Mobile Gift, Cards, Enterprise, Payroll

• Security & Fraud Encryption, Tokenization, Scoring, Reporting

• Other EFTPS, Tax Remittance, IVR, Consulting

GBS

58% GFS

21%

NSS

21%

Network & Security Solutions

GBS

Distribution

Direct

Distribution

Network & Security Solutions

GFS

Distribution

Network & Security Solutions are distributed through GBS, GFS and other direct channels

Merchant

Related ~60%

FI / Other

Related

~40%


eCommerce • SMB – Webstore-in-a-box solutions for existing and new clients

• Enterprise – Single point of contact for multi-country capabilities

9

SMB Solutions • Creating the largest open architecture app platform for

businesses

• 150+ apps developed

International Markets • Ramping Brazil greenfield

• Rolling out Clover in select international markets

Clover Operating

System

and App Market

Value

Added Solutions

SaaS Webstore

Builder Mobile

Ordering

Growth Initiatives – Global Business Solutions

Large Developed

Economies

Fast-Growing Developing

Economies

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Targeting Adjacencies • Launching alternative lending solutions

• Strengthening commercial payments capabilities

VisionPLUS Licensing • Industry leading international issuing platform

• Cloud and server version of the software allowing lower cost deployment

10

EMV Opportunity in the U.S.

• EMV liability shift presents mass re-issuance opportunity

• Personalization of EMV-enabled chip cards and EMV

authorizations driving higher revenue per card

Growth Initiatives – Global Financial Solutions

Alternative Lending

Solutions

Commercial Payments

Solutions

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Digital Gift Card • Expand from processing to distribution

• Enterprise issuers – B2B and B2C capabilities

• SMB issuers – making it easier for them to sell gift cards

Star Network Expansion • Expanding acceptance locations through non-PIN capabilities

• FDC acquiring assets provide unique competitive advantages

Security & Fraud • Encryption, tokenization and fraud detection tools

• Mobile wallet support

• Centralizing capabilities across acquiring and issuing

Growth Initiatives – Network & Security Solutions

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11


Financial Overview

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12


Powerful Financial Model

Highly diversified revenue base • Low customer concentration risk

Recurring revenue stream • Majority of revenue under multi-year contracts

Strong cash flow conversion • Large U.S. federal tax NOL, $5 billion as of 2015

• Minimal growth in capex and working capital

needed for continued growth

Significantly revamped balance sheet • $6B+ Primary Equity Raised, 2014 - 2015

• $13B+ Debt Refinanced, 2014 - 1Q16,

including $4.6B Refinanced in 1Q16 alone

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13


0% 0%

1%

1%

3%

4%

3%

6%

5% 5%

7%

4% 5%

-1%

1%

3%

5%

7%

9%

Q1 13 Q2 13 Q3 13 Q4 13 Q1 14 Q2 14 Q3 14 Q4 14 Q1 15 Q2 15 Q3 15 Q4 15 Q1 16

14

Return to growth is evident in last two years’ quarterly performance

Quarterly Revenue Growth

At Prior Year FX Rate

Constant currency

segment revenue

growth has improved to

mid-single digit rate in

past 9 quarters

Note: 4Q15 growth rate

adjusted for unusual

items was 5%

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Last 4 Quarter Trailing Average YoY Growth

Quarterly revenue growth rate (YoY) Commentary


15

Investments ramp 2014 – 1H15

Improved EBITDA Growth

Quarterly Adjusted EBITDA Growth Rate (YoY)

2014 EBITDA benefited

from revenue growth and

expense saves

Early 2015 represents

period of high YoY

investment cost growth

Expense savings initiative

announced 2Q15

Commentary

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Heavy Investment Period Clover, Insightics, STAR,

Brazil, Virtual Gift, Sales

Force Expansion, etc.

Last 4 Quarter Trailing Average YoY Growth

-5%

2% 3%

2%

18%

8%

5%

6%

-8%

3%

7% 7%

13%

-10%

-5%

0%

5%

10%

15%

20%

Q1 13 Q2 13 Q3 13 Q4 13 Q1 14 Q2 14 Q3 14 Q4 14 Q1 15 Q2 15 Q3 15 Q4 15 Q1 16


16

Increasing margins from Q2 2015 to Q1 2016 driven by revenue growth and cost management

Expanding Margins

Quarterly Adjusted EBITDA Margin @ Reported FX Rates

Q1.15 represents period

of high YoY investment

cost growth

Expense savings initiative

announced Q2 2015,

coupled with revenue

growth led to significant

EBITDA margin

improvement in Q2.15-

Q1.16

Commentary

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2013 2014 2015 2016

32.8%

37.7%

37.2%

38.7%

36.7%

37.7%

39.1%

37.8%

39.6%

38.6%

34.0%

39.8%

39.1%

41.6%

38.7%

37.6%

32%

34%

36%

38%

40%

42%

Q1 Q2 Q3 Q4 Full Year


$0

$500

$1,000

$1,500

$2,000

$2,500

2013 2014 Current Annualized Run Rate

$2.0(1)

~$1.0

$1.7

Interest Expense ($B)

~$1.0B Reduction

$1.8

Equity raises and refinancing actions have led to ~$1B reduction in annualized interest expense since 2013

Leverage and interest coverage ratios have improved significantly

(1) Includes $0.2 billion of PIK non-cash interest held at former HoldCo; (2) Excludes capitalized leases. LIBOR based upon one month rate. $5B of term loan notional value swapped

from floating to fixed rate reflected in average rate. 3/31/16 average cost of debt is pro forma for extended maturity of $3.7B of term loans from 2018 to 2021, executed on April 13,

2016, see slide 23.

Average Cost of Debt:

2013 End = 8.1%

Current = 5.6%

(2)

Cash Interest Expense Path

17


2015 Pro Forma Free Cash Flow

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Free Cash Flow ($M) 2015 2015

Pro Forma

Adjusted EBITDA $2,730 $2,730

Cash Interest Payments (1,800) (1,022)

Cash Taxes (95) (95)

Capital Expenditures (602) (602)

Working Capital Change (204) (204)

Net Impact from Consolidated and Unconsolidated Affiliates(1) (24) (24)

Items Excluded from Adjusted EBITDA/Other(2) (124) (26)

Free Cash Flow(3) ($119) $757

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(1) Distributions received from minority partners less earnings from unconsolidated affiliates and distributions paid to minority partners less net income attributable to non-controlling

interest. (2) Primarily non-operating addbacks such as severance, retention, facility closures and KKR Management Fees. (3) See slide 29 for quarterly reconciliations of operating

cash flow to free cash flow.

IPO and debt refinancing

Termination of Management Fee

2015 free cash flow, pro forma for IPO and refinancing

$0.8B 2015 free cash flow pro forma for pro forma / refinancing and KKR management fee

Note: 1Q16 Adjusted EBITDA grew $73M YoY, Working Capital improved $19M YoY (see slide 19)

18


1Q16 Free Cash Flow

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Free Cash Flow ($M) 2016 2015 $ Change 2016 2015 $ Change

Adjusted EBITDA $636 $563 $73 $636 $563 $73

Cash Interest Payments (186) (561) 375 ($186) ($561) 375

Cash Taxes (26) (19) (7) ($26) ($19) (7)

Capital Expenditures (117) (145) 28 ($117) ($145) 28

Working Capital Change (87) (106) 19 ($87) ($106) 19

Dividends Received from Unconsolidated Affiliates (net)(1) 13 18 (5) $13 $18 (5)

Net Impact from Consolidated Affiliates(2) (8) (13) 5 ($8) ($13) 5

Items Excluded from Adjusted EBITDA/Other(3) (14) (47) 33 ($14) ($47) 33

Free Cash Flow(4) $211 ($310) $521 $211 ($310) $521

First Quarter Year-to-Date

Improved Free Cash Flow driven primarily by lower cash interest and increased adjusted EBITDA

2016 full year cash interest payments estimated at approximately $1.0 billion

(1) Distributions received from minority partners less earnings from unconsolidated affiliates. (2) Distributions paid to minority partners less net income attributable to non-controlling

interest. (3) Primarily non-operating addbacks such as severance, retention, facility closures and KKR related items. (4) See slide 29 for quarterly reconciliations of operating cash flow

to free cash flow.

19


Appendix

1Q16 Financial Results

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B: 20

20


GAAP Metrics

Consolidated revenue of $2.8 billion, up 3%

Operating profit of $238 million, down 8%, driven by $52 million

of IPO-triggered stock-based compensation costs

Net loss attributable to First Data of $56 million, narrowed by

50%, driven by improved operating results and lower interest

expense, partially offset by IPO-triggered stock-based

compensation and $46 million of debt extinguishment costs

Important Non-GAAP Metrics

Segment revenue of $1.7 billion(1), up 2%

o Up 5% constant currency

Adjusted EBITDA of $636 million, up 13%

o Margin of 37.6%, up 360 basis points

Adjusted net income(2) of $220 million, up $185 million

o Driven by improved operating performance and reduced interest expense

$1,655

$1,765 $1,797 $1,831

$1,693

2%

1%

4%

2%

2%

5% 5% 7%

4%

5%

1Q15 2Q15 3Q15 4Q15 1Q16

Segment Revenue ($M) and % Change

Adjusted EBITDA ($M) and Margin

Margin

$563

$702 $703

$762

$636

34.0%

39.8% 39.1%

41.6%

37.6%

1Q15 2Q15 3Q15 4Q15 1Q16

Reported Constant Currency

See slide 26 for reconciliation of GAAP net loss to adjusted EBITDA and slide 27 for GAAP net loss to adjusted net income. (1) Segment revenue modifies consolidated revenue for the

exclusion of various pass-through items and other impacts. (2) Starting in the first quarter 2016, the company modified the definition of adjusted net income. Adjusted net income now

adds back only the portion of consolidated amortization related to alliances that is attributable to First Data’s ownership percentage, as opposed to 100% of consolidated amortization. For

comparison purposes, current and prior year periods have been adjusted in our reconciliation tables to reflect the modified definition. For reference, under the prior definition, adjusted net

income for the first quarter 2016 would have been $238 million, up $182 million versus the prior year period.

1Q16 Summary Financial Results

21


Operating leverage driven by revenue growth and expense management

See slide 25 for reconciliation of consolidated expenses to adjusted expenses and slide 26 for GAAP net loss to adjusted EBITDA. (1) Certain measures in this release are

presented excluding the estimated impact of foreign currency changes (“constant-currency” or “CC”). To present this information, monthly results in the current period for entities reporting in

currencies other than United States dollars are translated into United States dollars at the average exchange rates in effect during the corresponding month of the prior fiscal year, rather

than the actual average exchange rates in effect during the current fiscal year. Once translated, each month in the period is added together to calculate the constant currency current period

results. (2) “B” means results in 1Q16 are better than results in 1Q15, “(W)” means results are worse.

1Q16 Financial Overview – Segment Detail

22

CC(1)

CC(1)

1Q16 1Q15 $ B/(W)(2)

% B/(W) % B/(W) 2016 2015 $ B/(W)(2)

% B/(W) % B/(W)

Segment Revenue $1,693 $1,655 $38 2% 5% $1,693 $1,655 $38 2% 5%

GBS 955 962 (7) (1%) 2% 955 962 (7) (1%) 2%

GFS 386 357 29 8% 12% 386 357 29 8% 12%

NSS 352 336 16 5% 5% 352 336 16 5% 5%

Adjusted Expenses $1,057 $1,092 $35 3% $1,057 $1,092 $35 3%

GBS 579 602 23 4% 579 602 23 4%

GFS 231 238 7 3% 231 238 7 3%

NSS 201 206 5 2% 201 206 5 2%

Corporate 46 46 0 0% 46 46 0 0%

Adjusted EBITDA $636 $563 $73 13% $636 $563 $73 13%

GBS 376 360 16 4% 376 360 16 4%

GFS 155 119 36 30% 155 119 36 30%

NSS 151 130 21 16% 151 130 21 16%

Corporate (46) (46) 0 0% (46) (46) 0 0%

Adjusted EBITDA Margin 37.6% 34.0% 360 bps 37.6% 34.0% 360 bps

GBS 39.4% 37.4% 200 39.4% 37.4% 200

GFS 40.2% 33.3% 690 40.2% 33.3% 690

NSS 42.9% 38.7% 420 42.9% 38.7% 420

Reported Rates

First Quarter Year-To-Date

Reported Rates

($M)


Note: Capital Structure as of 4/13/2016, pro forma for $3.7B dollar denominated term loans which extended maturity from March 2018 to March 2021. LIBOR based upon one month

rate of as March 2016. (1) $5 billion step up swaps (9/24/12 - 9/24/16) fixed at average 1.32%

Pro Forma as of 4/13/16

Tranche Rate Call Date Call Price Maturity Par Amount

Pro Forma ($M)

Extended Revolver ($1.25 billion) L + 350 2020 $269

A/R Securitization L + 200 2019 $233

Capital Leases Short and Long Various Various $226

Term Loan L + 350 2018 $354

Term Loan L + 350 2018 $1,008

Term Loan L + 400 2021 $4,893

Term Loan L + 375 2022 $2,487

First Lien Notes 6.750% 11/1/2016 103.375 2020 $1,398

First Lien Notes 5.375% 8/15/2018 102.688 2023 $1,210

First Lien Notes 5.000% 1/15/2019 102.500 2024 $1,900

Senior Secured 5.22% $13,977

Second Lien Notes 5.750% 1/15/2019 102.875 2024 $2,200

Second Lien 5.75% $2,200

Senior Unsecured Notes 7.000% 12/1/2018 103.500 2023 $3,400

Senior Unsecured 7.00% $3,400

Total Debt 5.59% $19,577

Cash $311

Net Debt $19,266

1Q16 Capital Structure Improvements

23

(1)

(1)

(1)

(1)


(1) Excludes short-term borrowings related primarily to revolving credit facility, outstanding settlement lines of credit, capital leases, and AR securitization, excluding unamortized

discount. Shown pro forma as of April 13, 2016 after closing on the new $3.7 billion term loan due March 2021.

2018 debt maturities

significantly reduced

through refinancing

activity

Issued $900 million of

first lien notes at 5.0%,

maturing in 2024;

proceeds were used to

repay a portion of 2018

term loans

Extended the maturity of

$3.7 billion of term loans

from March 2018 to

March 2021

Debt Maturity Profile(1)

$1,362 $1,398

$4,893

$2,487

$4,610

$4,100

$0

$2,000

$4,000

$6,000

$8,000

$10,000

2016 2017 2018 2019 2020 2021 2022 2023 2024

Refinanced Debt

$ Million

Balance Sheet Updates

24


Three months ended March 31 ($M)

2016 2015 % Change

Consolidated expenses $ 2,539 $ 2,435 4%

Independent Sales Organization (ISO) commission expense (163) (147)

Reimbursable PIN debit fees, postage and other (907) (873)

Adjustments for non wholly owned entities (18) (15)

Depreciation and amortization (238) (251)

Restructuring, net (21) (1)

Other one-time costs (20) (49)

Stock-based compensation (115) (7)

Adjusted expenses $ 1,057 $ 1,092 -3%

Non-GAAP Reconciliation: Consolidated to Adj. Expenses

25


(1) Restructuring, non-normal course litigation and regulatory settlements, debt issuance costs, and "Other income (expense)" as presented in the Consolidated Statements of Operations,

which includes divestitures, impairments, derivative gains and (losses), non-operating foreign currency gains and (losses), and Kohlberg Kravis Roberts & Co. (KKR) related items. KKR

related items represents KKR annual sponsorship fees for management, consulting, financial and other advisory services.

Three Months Ended ($M)

Q1 2015 Q2 2015 Q3 2015 Q4 2015 Q1 2016

Net loss attributable to First Data Corporation $ (112) $ (26) $ (126) $ (1,217) $ (56)

Adjustments for non wholly owned entities (7) (6) (6) (7) (10)

Depreciation and amortization 251 252 257 262 238

Interest expense, net 406 405 388 338 263

Loss on debt extinguishment - - 108 960 46

Other items (1) 15 51 42 72 35

Income tax expense 3 10 32 56 5

Stock-based compensation 7 16 8 298 115

Adjusted EBITDA $ 563 $ 702 $ 703 $ 762 $ 636

Non-GAAP Reconciliation: GAAP Net (Loss)/Inc. to Adj. EBITDA

26


(a) Represents proportional consolidation, Independent Sales Organization commissions, and reimbursable PIN debit fees, postage, and other; (b) Stock-based compensation expense includes $49 million of

IPO-triggered expense, net of tax; (c) Represents costs associated with debt refinancing; (d) Represents mark-to-market activity related to our undesignated hedges, ineffectiveness of our designated hedges,

and mark-to-market activity on our euro-denominated debt held in the United States; (e) Represents amortization of intangibles established in connection with the 2007 Merger and acquisitions we have made

since 2007, excluding the percentage of our consolidated amortization of acquisition intangibles related to non wholly owned consolidated alliances equal to the portion of such alliances owned by our alliance

partners. This column also includes amortization related to deferred financing costs; (f) Represents restructuring, impairments, litigation and regulatory settlements, investments gains and (losses), and

divestitures, as applicable to the periods presented.

Three Months Ended March 31, 2016 Adjustments

GAAP

Segment

Adjustments(a)

Stock-based

compensation (b)

Loss on debt

extinguishment (c)

MTM adjustment for

derivatives (d)

Amortization of

acquisition

intangibles and

deferred financing

costs (e)

Restructuring,

impairment,

litigation and other

(f) Adjusted

Total revenues $ 2,777 $ (1,084) $ - $ - $ - $ - $ - $ 1,693

Total expenses 2,539 (1,098) (115) - - (105) (27) 1,194

Operating profit 238 14 115 - - 105 27 499

Interest expense, net (263) - - - - 3 - (260)

Loss on debt extinguishment (46) - - 46 - - - -

Other income (expense) 6 - - - 4 - (10) -

(Loss) income before income taxes

and equity earnings in affiliates (65) 14 115 46 4 108 17 239

Income tax expense (benefit) 5 - 7 - - 6 1 19

Equity earnings in affiliates 64 (64) - - - - - -

Net (loss) income (6) (50) 108 46 4 102 16 220

Less: Net income attributable to

noncontrolling interests and

redeemable noncontrolling interest 50 (50) - - - - - -

Net (loss) income attributable to First

Data Corporation $ (56) $ - $ 108 $ 46 $ 4 $ 102 $ 16 $ 220

Net (loss) income per share:

Basic $ (0.06) $ 0.25

Diluted $ (0.06) $ 0.24

Weighted-average common shares

outstanding:

Basic 896,339,379 896,339,379

Diluted 896,339,379 918,886,109

Non-GAAP Reconciliation: Adjusted Net Income

27


(a) Represents proportional consolidation, Independent Sales Organization commissions, and reimbursable PIN debit fees, postage, and other; (b) Represents costs associated with debt refinancing; (c)

Represents mark-to-market activity related to our undesignated hedges, ineffectiveness of our designated hedges, and mark-to-market activity on our euro-denominated debt held in the United States; (d)

Represents amortization of intangibles established in connection with the 2007 Merger and acquisitions we have made since 2007, excluding the percentage of our consolidated amortization of acquisition

intangibles related to non-wholly owned consolidated alliances equal to the portion of such alliances owned by our alliance partners. This column also includes amortization related to deferred financing costs; (e)

Represents restructuring, impairments, litigation and regulatory settlements, investments gains and (losses), and divestitures, as applicable to the periods presented.

Three Months Ended March 31, 2015 Adjustments

GAAP

Segment

Adjustments(a)

Stock-based

compensation

Loss on debt

extinguishment (b)

MTM adjustment for

derivatives (c)

Amortization of

acquisition

intangibles and

deferred financing

costs (d)

Restructuring,

impairment,

litigation and other

(e) Adjusted

Total revenues $ 2,695 $ (1,040) $ - $ - $ - $ - $ - $ 1,655

Total expenses 2,435 (1,042) (7) - - (132) (25) 1,229

Operating profit 260 2 7 - - 132 25 426

Interest expense, net (406) - - - - 16 - (390)

Loss on debt extinguishment - - - - - - - -

Other income (expense) 35 - - - (66) - 31 -

(Loss) income before income taxes

and equity earnings in affiliates (111) 2 7 - (66) 148 56 36

Income tax expense (benefit) 3 - - - - - (2) 1

Equity earnings in affiliates 51 (51) - - - - - -

Net (loss) income (63) (49) 7 - (66) 148 58 35

Less: Net income attributable to

noncontrolling interests and

redeemable noncontrolling interest 49 (49) - - - - - -

Net (loss) income attributable to First

Data Corporation $ (112) $ - $ 7 $ - $ (66) $ 148 $ 58 $ 35

Non-GAAP Reconciliation: Adjusted Net Income

28


Three Months Ended ($M)

Q1 2015 Q2 2015 Q3 2015 Q4 2015 Q1 2016

Cash provided by / (used in)

operating activities $ (102) $ 555 $ 234 $ 108 $ 386

Capital expenditures (145) (139) (173) (145) (117)

Distributions to minority interest (63) (100) (70) (79) (58)

Free cash flow $ (310) $ 316 $ (9) $ (116) $ 211

Non-GAAP Reconciliation: Operating to Free Cash Flow

29


Notice to Investors, Prospective Investors and the Investment Community;

Cautionary Information Regarding Forward-Looking Statements

Certain matters we discuss in this presentation and in other public statements may constitute forward-looking

statements. You can identify forward-looking statements because they contain words such as “believes,” “expects,”

“may,” “will,” “should,” “seeks,” “intends,” “plans,” “estimates,” or “anticipates” or similar expressions which concern our

strategy, plans, projections or intentions. Examples of forward-looking statements include, but are not limited to, all

statements we make relating to revenue, EBITDA, earnings, margins, growth rates and other financial results for future

periods. By their nature, forward-looking statements: speak only as of the date they are made; are not statements of

historical fact or guarantees of future performance; and are subject to risks, uncertainties, assumptions or changes in

circumstances that are difficult to predict or quantify. Actual results could differ materially and adversely from our

forward-looking statements due to a variety of factors, including the following: (1) adverse impacts from global economic,

political, and other conditions affecting trends in consumer, business, and government spending; (2) our ability to

anticipate and respond to changing industry trends, including technological changes and increasing competition; (3) our

ability to successfully renew existing client contracts on favorable terms and obtain new clients; (4) our ability to prevent

a material breach of security of any of our systems; (5) our ability to implement and improve processing systems to

provide new products, improve functionality, and increase efficiencies; (6) our merchant alliance program which involves

several alliances not under our sole control and each of which acts independently of the others; (7) credit and fraud risks

in our business units and merchant alliances, particularly in the context of eCommerce and mobile markets; (8)

consolidation among financial institution clients or other client groups that impacts our client relationships; (9) our ability

to improve our profitability and maintain flexibility in our capital resources through the implementation of cost savings

initiatives; (10) our ability to successfully value and integrate acquired businesses, including those outside of the United

States; (11) our high degree of leverage; (12) adverse impacts from currency exchange rates or currency controls

imposed by any government or otherwise; (13) changes in the interest rate environment that increase interest on our

borrowings or the interest rate at which we can refinance our borrowings; (14) the impact of new laws, regulations, credit

card association rules, or other industry standards; and (15) new lawsuits, investigations, or proceedings, or changes to

our potential exposure in connection with pending lawsuits, investigations or proceedings, or changes to our potential

exposure in connection with pending lawsuits, investigations or proceedings, and various other factors set forth in our

Annual Report on Form 10-K for the period ended December 31, 2015, including but not limited to, Item 1 – Business,

Item 1A – Risk Factors and Item 7 – Management Discussion and Analysis of Financial Condition and Results of

Operations.

R: 0

G: 169

B: 224

R: 192

G: 19

B: 36

R: 162

G: 173

B: 0

R: 251

G: 79

B: 20

R: 0

G: 65

B: 101

R: 97

G: 99

B: 101

30

investor presentation - first data · in the appendix of this presentation for a more detailed list...

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