M. Troy Woods, Chairman of the Board and CEO, TSYS

Well, thank you very much. That introduction was from the marketing department. It's a pleasure to be here. Credit to Zack for convincing me months ago. I'll talk about TSYS's story. I started part-time at Columbus Bank and Trust in the credit card department. Our history goes back to 1888 with CB&T. In the mid-1960s, CB&T put the first computer online for DDA and credit card accounts. That led to third-party processing. In 1973 at a conference, we committed to process for Landmark Union Bank & Trust in St. Petersburg via a modem. We converted them in 1974, the start of our third-party processing. We grew slowly, then went public in 1983 with 3 million accounts and $15 million revenue, spinning off 18% from Synovus. In 2007, we fully spun off tax-free, just before the financial crisis. Since then, we've nearly quadrupled the company. Today, market cap is $9 billion, revenue $4.2 billion. We have 12,000 employees in 14 countries, handling 64 million transactions daily. Our business segments: North America (37% of revenue, 670 million accounts, 130 customers like Bank of America, Capital One); International (10%, 80 million accounts, second largest in Europe and Brazil, largest in China through a joint venture with China UnionPay); Merchant (33%, sixth largest acquirer in North America, 650,000 merchants after acquiring TransFirst for $2.4 billion); and Prepaid (20%, through NetSpend, serving 5.5 million accounts, fastest growing). We've won the Civic 50 award four years running and one of the World's Most Ethical Companies for five years. We store 9.8 petabytes of data and process $10 billion daily. I'll stop there and open for questions.

Great question. We've made two large acquisitions and a few smaller ones. NetSpend in Austin has a 'keep it weird' culture, a great aggressive team. TransFirst from Long Island has a different style. We work hard to integrate. We used to think Columbus was the center of the universe, but we learned to let regions do their own thing, like team appreciation week – we let each location celebrate in their own way. Every six weeks, I bring the top 500 people to Columbus for leadership meetings broadcast worldwide. It's constant work. The CB&T culture of taking care of team members and customers is our foundation.

It's huge. We've quadrupled our cybersecurity budget in 10 years. We have several thousand attempts a day from China, the US, everywhere. We cut off all of China but then attacks started coming from US IPs. We have to balance security with doing business. We moved to chip cards, tokenization, and built firewalls. One breach can devastate a company – Heartland dropped from $33 to $3.40. We all face this challenge.

We continue to look at it. I think cryptocurrencies will have some applications, but if the federal government can't control the monetary system, it won't become truly relevant. Blockchain and open ledgers have huge potential. Time will tell.

We think a lot about that. Like Apple, they didn't invent the phone but rejuvenated it. We need to constantly reimagine. Our Armageddon would be disruption of Visa/MasterCard rails. We watch Venmo, PayPal, and other disruptors. We partnered with China UnionPay, the second largest brand in the world. We have to avoid being disintermediated.

Great question. There's tremendous competition, even from Visa and MasterCard who see every transaction. But with Apple, they don't want our margins – ours are 30%, theirs 55%. Apple Pay is incremental for us because it still uses an account. The plastic may go away but the account remains. We charge extra for provisioning and tokenization. We've seen telcos try to disrupt but fail. But we watch for big disruptors like Uber.

Yes, sir – the question was about why chip adoption has been slow in the US. It's slow for two or three reasons. First, cost: terminals need upgrading. Second, the US was online with 99% authorization, so fraud was different. Third, the chip-and-PIN debate. The US chose chip-and-signature, arguing PIN is too slow. But it's getting better with new faster terminals.

Great question. International is only 10% of our business, but it matters. Brexit alone cost us $7 million in Q2. The strong dollar reduces our revenue. We report constant currency to investors. Our main currencies are the euro and pound. We have a natural hedge because we bill in euros and pounds. The stronger the dollar, the less revenue, but we can't control it. It's about 100 basis points impact on revenue growth.

Any others? Ben, thank you very much. I appreciate it.