EFTA01382668.pdf

S-I/A Table of Contents BUSINESS Our Company First Data sits at the center of global electronic commenx. We believe we offer our clients the most complete array of integrated solutions in the industry, covering their needs across next-generation commerce technologies, merchant acquiring, issuing. and network solutions. We serve our clients in 118 countries, reaching approximately 6 million business locations and over 4,000 financial institutions. We believe we have the industry's largest distribution network, driven by our partnerships with many of the world's leading financial institutions, our direct sales force, and a network of distribution partners. We are the largest merchant acquirer. issuer processor. and independent network services provider in the world, enabling businesses to accept electronic payments, helping financial institutions issue credit, debit and prepaid cants, and muting secure transactions between them. In 2014, we pia l 74 billion transactions globally, or over 2,300 per second, and processed 28% of the world's eCommerce volume. In our largest market, the United States, we acquired $1.7 trillion of payment volume, accounting for nearly 10% of U.S. GDP last year. Our company is organized around three primary lines of business: Global Business Solutions (CBS) — This segment provides retail point-of-sale merchant acquiring and eCommerce services as well as next-generation offerings such as mobile payment services, webgorc-in-a-box solutions, and our cloud-based Clover point-of-sale operating system, which includes a marketplace for proprietary and third-party business apps. • Global Financial Solutions (GFS) — This segment provides credit solutions for bank and non-bank issuers. These include credit and retail private-label card processing within the United States and international markets, as well as licensed financial software systems, such as our VisionPLUS bank processing application, and lending solutions. GFS also provides financial institutions with a suite of related services including card personalization and embossing, statement printing, client service, and remittance processing. Network & Security Solutions (NSS) — This segment provides a wide range of value-added solutions that we sell to clients in our OBS and GFS segments. smaller financial institutions, and other enterprise clients. These solutions include our EFT network solutions, such as our STAR Network. our debit card processing solutions, our stored value network solutions, such as Money Network, ValueLink,Gyfi, and Transaction Wireless, and our security and fraud solutions, such as Trans4rmor and TeleCheck. This segment also supports our other digital strategics, including online and mobile banking, and our business supporting mobile wallets. Our business is characterized by transaction related fees, multi-year contracts, and a diverse client base, which allows us to grow alongside our clients. Our multi-year contracts allow us to achieve a high level of recurring revenues with the same clients. While the contracts typically do not specify fixed revenues to be realized thereunder, they do provide a framework for revenues to be generated based on volume of services provided during such contract's term. Our business also generally requires minimal incremental capital expenditures and working capital to support additional revenue within our existing business lines. In 2014. we generated $11.2 billion of revenue. $1.4 billion of operating profit. and had a net loss attributable to First Data of $458 million, reflecting an increase of 3%, 28% and 52% (decrease of loss), respectively, over 2013. For the same period, we generated segment revenues (which exclude reimbursable fees and other items) of $6.9 billion, Adjusted EBITDA of $2.7 billion, and Adjusted Net Income of $488 million, reflecting an increase of 3%, 9% and 232%. respectively, over 2013. For additional infomlation regarding our segment revenues and non- GAAP financial measures, including a reconciliation of Adjusted EBITDA and Adjusted Net Income to net income attributable to First Data, see "Prospectus Summary—Summary Historical Consolidated Financial and Other Data." 98 http://www.see.pov/Archivecledgar/datant83980/000119312515334479/d31022dsla.html10/14/20I5 9:06:38 AM] CONFIDENTIAL - PURSUANT TO FED. R. CRIM. P. 6(e) DB-SDNY-0082117 CONFIDENTIAL SONY GM_00228301 EFTA01382668