Joe Myers EVP & GM, US Regional US Update

June 13, 2018

Year in Review

Sources:1 https://www.billboard.com/articles/columns/chart-beat/8085932/ed-sheeran-divide-nielsen-music-top-album-20172 https://www.mom365.com/baby-names/top-girl-names

Ed Sheeran's 'Divide' Is Nielsen Music's Top

Album of 2017 in U.S.1

Top Baby Girl Name of 2017 was Emma1

Top Baby Boy Name of 2017 was Liam1

A Royal Wedding

Sources:1 Bureau of Economic Analysis2 https://www.statista.com/statistics/710209/us-disposable-income/3 https://www.thebalance.com/consumer-spending-trends-and-current-statistics-33059164 https://www.forbes.com/sites/zackfriedman/2017/11/14/debt-auto-loans/#5f737977ffbf5 http://money.cnn.com/2017/12/29/investing/stocks-2017-wall-street/index.html

Year in Review

U.S. Growth Positive

Low Unemployment

Rates

Tax Cuts

U.S. Spends $3.6B on Natural

Disasters

U.S. Cybercrime Hits $100B Annually

Icon made by CC 3.0 BY

Year in Review

Mobile Dominates

50% of Online

Spending comes from In-App Purchases

In-app47%

Mobile web20%

Desktop33%

67%Retail Ecommerce

Transactions Occur on Mobile

46%Smartphone Users

Takeout or Delivery at least once per month.

Mobile

Other

2/3 Digital

Transactions Happen on Mobile Devices

Industry Volume & Growth

41%

92%

6%

23%

59%

8%

94%

77%

LOD GING $161B RESTA URA NT $584B PROFESS IONA L SERV ICES $364B

GOV ERNMENT $81B

CNP/CNP SPLITCard Present Card Not Present

Did you know…

Restaurant: Millennials spend 42% of total monthly food budget on eating at restaurants

Lodging: Millennials are more likely to use traditional offline travel agencies (23%), compared to Gen Xers and Baby Boomers (7% and 6%, respectively)

Retail: Retail sales hit a record of $5.7 trillion in 2017

Services: Professional Services industry is expected to maintain a 5%+ growth rate through 2020

& Strengthen

Amplify our channels

DevelopNew channels

Bolster with Integrated Payments & eCom

Revenue

MixCustomerFocus

Elevate

Employees

Strategy Grow

Industry Specialties and Integrated Payments

Specialty Retail

Charitable/ Membership, Professional Services

Restaurant

Government

Industry focused teams across functions (sales, partner development, product, etc.)

Lodging

Industry Integration/ e-Commerce Partners

New Vertical Focus

Business Development

Customer

Client Executive

/ Confidential and proprietary

Growth

& Strengthen

Amplify our channels

DevelopNew channels

Bolsterwith Integrated Payments & eCom

Revenue

MixCustomerFocus

Elevate

Employees

• Continue investment into Customer Management Platform & digitization of Customer journey points

• Better than peers customer attrition

• Channel Productivity

• Channel Modernization

• Segment Specialization

(Industry)• Retrofit channels to capture

integrated payments & e-com

Technology and human capitalWe will continue to ensure we are the partner of choice

Resiliency of our systemsSecurity is top priority Technical sales support

Third-party connections Single global platform

Outlook on the Payment Industry

1 https://www.mobilepaymentstoday.com/news/mobile-payments-set-to-reach-45b-market-value-by-2023/2 https://www.mobilepaymentstoday.com/news/study-online-card-payments-set-to-more-than-double-by-2022/

We see continued payments market growth on top of the 8% last year.

Mobile payments are expected to grow at a compound annual growth

rate of 33.8% from 2017 to 20231

E-Commerce is forecast to represent 14% of all card payments by 20222

E-Commerce, mobile payments and payments embedded into third-party software will continue to grow faster than the broader market