EFTA01382655.pdf

S-1/A Table of Conteak Revenue decreases internationally were offset by growth in North American credit cant and retail card processing revenue of $31 million, along with growth in output services of $24 million, print, plastics and remittance processing businesses. Growth in North America was partially offset by disposed businesses, which negatively impacted North America's revenue growth rate by approximately 3% in 2013. North America card accounts on file increased in 2013 versus 2012 from net new account conversions and growth from existing clients. International card accounts on file increased in 2013 compared to 2012 due to new accounts in India and the United Kingdom. GlobalFinancial Solutions Segment EBffDA increased significantly in 2014 compared to 2013 due to the impact of the revenue items noted above as well as decreased operating expenses as a result of lower headcount and changes in compensation programs. EB1TDA growth was partially offset by the impact of a strong U.S. dollar as foreign currency exchange rate movements negatively impacted segment EB1TDA in 2014 compared to 2013 by 1 percentage point. GlobalFinancial Solutions Segment EBffDA increased in 2013 compared to 2012 due mostly to decreased operating expenses resulting from our cost reduction initiatives partially offset by declines in revenue noted above. Network & Security Solutions segment results The following table displays total revenue by product. Our Network & Security Solutions segment is comprised of more than 99% domestic businesses with no material foreign exchange impact on reported results. fear ended Ikcernber 31. Change 2014 vs. 2013 vs. (In mallow) 2014 2013 2012 2013 2012 Revenues: EFT Network $ 466 $ 449 $ 509 4% (12)% Stored Value Network 332 347 305 (4)% 14% Security and Fraud 376 376 397 —% (5)% Other 195 190 19$ 3% (3)% Segment revenue $ 1.369 $ 1.362 $ I .406 1% (3)% Segment EMMA $ 608 $ 549 $ 585 11% (6)% Segment margin 44% 40% 42% 400 bps (200) bps Key indicators: Network transactions (EFT and Stored Value) (a) 17,435 16.763 16.299 4% 3% (a) Network transactions include the debit issuer processing transactions, STAR Network issuer transactions, and closed loop and open loop POS transactions. Network & Security Solutions revenue increased 1% in 2014 compared to 2013 driven by a 4% growth in our EFT Network business. partially offset by a 4% decrease in our Stored Value Network business. Security and Fraud revenue remained flat as continued declines in check revenue of $24 million were offset by growth in our portfolio of fraud solutions products. EFT Network revenue increased due to internal growth and a new transaction routing program that was introduced in the first quarter of 2014, which positively impacted growth by $17 million in 2014 compared to 2013. Stored Value Network revenue decreased due to the disposition of a noncore transportation payments joint venture. EFS. that occurred in late May 2014 and had an approximate $30 million negative impact on segment revenue. The impact of the EPS disposition was partially offset by higher payment volumes within the open loop payroll distribution program related to existing clients and new business. 79 http://wvmsee.gov/Archi vecledgaddataht83980/000119312515334479/d31022dsla.htmill0/14/2015 9:06:38 AM] CONFIDENTIAL - PURSUANT TO FED. R. CRIM. P. 6(e) DB-SDNY-0082098 CONFIDENTIAL SONY GM_00228282 EFTA01382655