EFTA01382653.pdf

Y.- I/A Table of Contents Transaction andprocessing servicefees revenue grew 2% in 2014 compared to 2013 led by 8% growth in our EMEA region. EMEA growth was driven by growth in our merchant acquiring alliances business. Our North America segment growth was driven by net pricing increases resulting in an increase of approximately $20 million for regional merchants, and network routing incentives. In 2014. the U.S. dollar significantly strengthened in comparison to most major currencies negatively impacting revenue growth in our international regions. North America transaction growth in 2014 compared to 2013 was driven by growth in our national and ISO merchants. partially offset by lost business at Walman as they shifted from using us as their sole processor to a dual processor strategy in the just quarter of 2014. The Walmart shift resulted in a revenue decline of $16 million compared to the prior year. This decline was partially offset by volume growth from other clients. International transaction growth in 2014 compared to 2013 outpaced revenue growth due to changes in transaction mix and the impact of foreign currency exchange rate movements. Transaction andprocessing servicefees revenue increased 3% in 2013 compared to 2012 led by growth in our North America and EMEA regions. North America growth was driven by volume growth of approximately $15 million, net pricing increases rmIting in an increase of approximately $15 million and network routing incentives of approximately $30 million. Revenue growth was particularly strong in our EMEA region, which accounted for approximately 509/0 of segment growth. Growth in our EMEA region was driven by volume growth. particularly in merchant acquiring alliances as well as direct sales channels in Ireland. the United Kingdom. and Poland. In addition, revenue in our APAC region decreased compared to 2012 due to lower ATM volumes in Australia. In 2013, the U.S. dollar strengthened in comparison to most major currencies negatively impacting our 2013 revenue growth. International transaction growth in 2013 compared to 2012 outpaced revenue growth due to changes in transaction mix and the impact of foreign currency exchange rate movements. Total product sales and other revenue The following table displays total product sales and other revenue by segment region and illustrates, on a percentage basis, the impact of foreign currency fluctuations on revenue growth. Constant Currency Year ended December31. Percent Change Percent Change 2014 vs. 2013 vs. 2014 vs. 2013 is. (In millions) 2014 2013 2012 2013 2012 2013 2012 North America $ 546 $ 500 $ 542 9% (8)% 9% (8)96 EMEA 165 147 141 12% 4% 11% 3% APAC 3 4 6 (25)36 (33)% (23)% (32)% 1,ATAM 52 58 55 (10)% 5% 31% 25% Total product sales and other revenue $ 766 $ 709 $ 744 8% (5)96 11% (4)% Product sales and other revenue increased 8% in 2014 compared to 2013 due to the impact of a $12 million sale of a merchant portfolio in Poland during the fourth quarter of 2014, portfolio growth in the leasing business of $15 million, including interest income and fees on terminal leases, and $25 million growth in software sales. In 2014, foreign currency exchange rate movements negatively impacted the growth rate for product sales and other revenue in 2014 compared to 2013. Product sales and other revenue decreased 5% in 2013 compared to 2012 due to a decline in terminal sales of $18 million, including lower bulk sales, as well as a $25 million decline in software sales, partially offset by $12 million of growth in professional services revenue resulting from new projects. 77 http://vanv.seggov/Archi vecledgar/datantR3980/000119312515334479/d31022dsla.htmill0/14/2015 9:06:38 AM] CONFIDENTIAL - PURSUANT TO FED. R. CRIM. P. 6(e) DB-SDNY-0082096 CONFIDENTIAL SONY GM_00228280 EFTA01382653