Global Payments Inc. (NYSE:GPN) Q4 2022 Earnings Conference Call February 10, 2023 8:00 AM ET Company Participants Winnie Smith - Senior Vice President, Investor Relations Jeff Sloan - Chief Executive Officer Cameron Bready - President and Chief Operating Officer Josh Whipple - Senior Executive Vice President and Chief Financial Officer Conference Call Participants Darrin Peller - Wolfe Research James Faucette - Morgan Stanley Jason Kupferberg - Bank of America Bryan Keane - Deutsche Bank Vasu Govil - KBW W ...

Outstanding performance 2020 2021 20221 Full Year 2022 Adjusted Net Revenue Adjusted Operating Margin Adjusted EPS 1 Adjusted net revenue growth on a constant currency basis excludes the estimated impact of foreign currency fluctuations and is calculated using average exchange rates during the same period in 2022. (unaudited) Adiustments' Note: Amounts may not sum due to rounding. (3) Income taxes on adjustments reflect the tax effect of earnings adjustments to income before income taxes. The tax rate used ...

Financial Data and Key Metrics Changes - The company reported adjusted net revenue of $2.06 billion for Q3 2022, a 6% increase from the prior year on a constant currency basis [33] - Adjusted operating margin improved by 240 basis points to a record 45.2%, resulting in adjusted earnings per share of $2.48, an 18% increase from the prior year on a constant currency basis [34] - Adjusted net revenue for the full year is expected to be in the range of $7.8 billion to $7.9 billion, with adjusted earnings per share projected between $9.32 and $9.55 [49][50] Business Line Data and Key Metrics Changes - Merchant Solutions achieved adjusted net revenue of $1.45 billion for Q3 2022, a 10% improvement on a constant currency basis [35] - The issuer solutions segment delivered $489 million in adjusted net revenue, a 6% improvement on a constant currency basis [39] - Transaction volumes grew double digits in Q3, led by commercial card transactions, which increased by 25% [18][40] Market Data and Key Metrics Changes - Outside the U.S., revenue improved in key faster-growth geographies, including Spain, Central Europe, and Southeast Asia, despite headwinds from foreign currency exchange rates and COVID-related restrictions [38] - The U.K. and Canada each represent about 5% of the merchant business, while Asia Pacific accounts for a smaller portion, approximately 1/3 of the size of the U.K. and Canada [82][83] Company Strategy and Development Direction - The company is focused on enhancing its B2B capabilities and has integrated NetSpend's B2B assets into its issuer business [19] - The acquisition of EVO Payments is expected to enhance growth and margin targets, with Merchant Solutions projected to represent approximately 75% of adjusted net revenue post-acquisition [55] - The company is expanding its e-commerce partnerships and technology solutions, including a recent agreement with Gucci and ongoing collaboration with Google [27][25] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the underlying fundamentals of the business, noting no significant evidence of softness in trends despite macroeconomic concerns [53] - The company anticipates continued solid performance into Q4 2022, with expectations for core business growth remaining unchanged [48] - Management highlighted the importance of maintaining financial flexibility and the ability to accelerate synergies from acquisitions [87] Other Important Information - The company completed a $2.5 billion senior unsecured notes offering and a $1.5 billion strategic investment with Silver Lake, enhancing its capital structure [44][46] - Adjusted free cash flow for the quarter was $640 million, with capital expenditures expected to be around $600 million for the full year [42] Q&A Session Summary Question: What is driving the strength in the merchant business? - Management noted stability and strength across most sectors, with volume growth achieved without significant exposure to travel and entertainment [60][62] Question: Can you clarify the guidance regarding FX impacts? - Management reiterated that the core business growth expectations remain at 10% to 11% on a constant currency basis, with FX headwinds expected to impact adjusted net revenue growth by approximately 300 basis points [68][69] Question: What is the outlook for the EVO acquisition and its impact? - Management indicated that the EVO acquisition is expected to offset the lost earnings from NetSpend consumer, with both transactions being roughly neutral from an accretion dilution perspective [71][73] Question: What are the underlying drivers of margin expansion? - The expansion of margins is attributed to better transactional performance and a focus on profitable growth, with expectations for continued trends into Q4 [76][78] Question: How is the company positioned in the BNPL ecosystem? - Management highlighted significant progress in BNPL technologies and services, with a strong implementation pipeline and partnerships with financial institutions [100][102]

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q ☑ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 2022 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission file number: 001-16111 GLOBAL PAYMENTS INC. (Exact name of registrant as specified in charter) | Georgia | 58-2567903 | | --- | --- | ...

ùQ ù÷ùù Earnings 08/01/2022 globalpayments Innovation that delivers. Forward-Looking Statements This presentation contains certain forward-looking statements within the meaning of the "safe-harbor" provisions of the Private Securities Litigation Reform Act of øĀĀü. These forward-looking statements, which are based on current expectations, estimates and projections about the industry and markets in which we operate, and beliefs of and assumptions made by our management, involve risks and uncertainties that c ...

Global Payments, Inc. (EVOP) Q2 2022 Earnings Conference Call August 3, 2022 8:00 AM ET Company Participants Winnie Smith - SVP, IR Jeffrey Sloan - CEO & Director Cameron Bready - President & COO Joshua Whipple - CFO Conference Call Participants Darrin Peller - Wolfe Research Bryan Keane - Deutsche Bank David Koning - Robert W. Baird & Co. Robert Napoli - William Blair & Company Ramsey El-Assal - Barclays Bank James Friedman - Susquehanna Financial Group Operator Ladies and gentlemen, thank you for standing ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q ☑ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Commission file number: 001-16111 GLOBAL PAYMENTS INC. (Exact name of registrant as specified in charter) | Georgia | 58-2567903 | | --- | --- | | (State or other jurisdiction of | (I.R.S. Employer | | incorporation or organization) | Identification No.) | | 3550 Lenox Road, Atlanta, Georgia | 30326 | | (Address of princ ...

EVO Payments, Inc. (EVOP) Q1 2022 Earnings Conference Call May 4, 2022 8:00 AM ET Company Participants Ed O’Hare - Investor Relations Jim Kelly - Chief Executive Officer Tom Panther - Chief Financial Officer Darren Wilson - President, International Brendan Tansill - President, Americas Conference Call Participants Tien-Tsin Huang - JPMorgan Ashwin Shirvaikar - Citigroup George Mihalos - Cowen Kartik Mehta - Northcoast Research Cris Kennedy - William Blair Andrew Jeffrey - Truist Securities Bryan Keane - Deu ...

First Quarter 2022- Business Update May 4, 2022 Forward-Looking Statements & Non-GAAP Financial Measures Forward-Looking Statements This presentation contains certain forward-looking statements within the meaning of the U.S. federal securities laws. These forward-looking statements, which are based on current expectations, estimates and projections about the industry and markets in which we operate, and beliefs of and assumptions made by our management, involve risks and uncertainties, many of which are bey ...

Financial Performance - Consolidated revenues for Q1 2022 increased by 8.4% to $2,156.3 million compared to $1,990.0 million in Q1 2021, driven by growth in transaction volumes and digital payment solutions[73]. - Operating income for Q1 2022 rose to $375.9 million, up 36.6% from $275.3 million in Q1 2021, with an operating margin increase to 17.4% from 13.8%[73]. - Merchant Solutions segment revenues increased by 16.2% to $1,473.0 million in Q1 2022, compared to $1,267.9 million in Q1 2021, attributed to a growing customer base and economic recovery[83]. - Issuer Solutions segment revenues grew by 2.2% to $511.5 million in Q1 2022, compared to $500.3 million in Q1 2021, benefiting from the inclusion of the recently acquired MineralTree business[84]. - Business and Consumer Solutions segment revenues decreased to $195.8 million in Q1 2022 from $243.6 million in Q1 2021, impacted by the absence of prior year stimulus-related spending[85]. - Net income attributable to Global Payments increased to $244.7 million for the three months ended March 31, 2022, compared to $196.7 million for the prior year[93]. - Diluted earnings per share rose to $0.87 for the three months ended March 31, 2022, compared to $0.66 for the prior year[94]. Expenses and Costs - Cost of service for Q1 2022 increased by 3.4% to $957.2 million, while as a percentage of revenues, it decreased to 44.4% from 46.5% in the prior year[86]. - Selling, general and administrative expenses rose by 4.3% to $823.1 million in Q1 2022, with a decrease in percentage of revenues to 38.2% from 39.7% in the prior year[87]. - Corporate expenses decreased by $34.8 million to $160.3 million for the three months ended March 31, 2022, compared to $195.1 million for the prior year, primarily due to lower acquisition and integration expenses[88]. Cash Flow and Investments - Operating activities provided net cash of $630.0 million for the three months ended March 31, 2022, up from $599.4 million for the prior year[101]. - Capital expenditures increased to $156.1 million for the three months ended March 31, 2022, compared to $86.2 million for the prior year, focusing on new technologies and infrastructure[102]. - The company had cash and cash equivalents totaling $2,045.3 million as of March 31, 2022, with $797.3 million available for general purposes[99]. - The company used $649.7 million for share repurchases during the three months ended March 31, 2022, compared to $803.0 million for the prior year[106]. Tax and Debt - The effective income tax rate increased to 18.4% for the three months ended March 31, 2022, from 10.5% for the prior year, primarily due to changes in valuation allowances[92]. - As of March 31, 2022, the company had $9.4 billion in aggregate principal amount of senior unsecured notes, maturing at various dates from June 2023 to August 2049[108]. Risks and Uncertainties - The company acknowledges that forward-looking statements are based on assumptions and are subject to significant risks and uncertainties, which may lead to actual results differing materially from expectations[117]. - The company emphasizes the potential impact of global events, including the COVID-19 pandemic and geopolitical tensions, on its operations and financial performance[117]. - Integration challenges and costs related to the acquisition of Global Payments and Total System Services, Inc. are highlighted as potential risks[117]. - The company faces risks associated with compliance to payment network requirements and maintaining necessary registrations[117]. - Increased competition in existing markets and the ability to expand into new markets are identified as critical factors for future growth[117]. - The company must manage risks related to data security and operational failures, which could affect its business[117]. - Environmental, social, and governance targets are noted as important commitments that the company aims to meet[117]. - The company warns of potential impacts from changes in laws and regulations, particularly regarding privacy and cybersecurity[117]. - The company disclaims any obligation to update forward-looking statements, except as required by law[118]. - For detailed market risk exposure, the company refers to its Annual Report on Form 10-K for the year ended December 31, 2021[119]. Future Outlook - The company expects to recognize a charge of approximately $130 million in Q2 2022 related to the sale of its merchant business in Russia due to sanctions imposed following the invasion of Ukraine[75]. - Currency exchange rate fluctuations negatively impacted consolidated revenues by approximately $14.7 million and operating income by approximately $4.7 million in Q1 2022[76]. - The company continues to invest in new technology solutions and innovation, focusing on enhancing its technology and cloud-based solutions[72].