UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

FORM 8-K

CURRENT REPORT
Pursuant to Section 13 or 15(d) of The
Securities Exchange Act of 1934
Date of Report (Date of earliest event reported) : May 9, 2012

THE WESTERN UNION COMPANY
(Exact name of registrant as specified in its charter)

 
					
Delaware	 	001-32903	 	20-4531180	
(State or other jurisdiction
of incorporation)	 	(Commission
File Number)	 	(IRS Employer
Identification No.)	
		
12500 East Belford Avenue
Englewood, Colorado	 	80112	
(Address of principal executive offices)	 	(Zip Code)	
Registrant’s telephone number, including area code: (866) 405-5012
N/A
(Former name or former address, if changed since last report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
 
¨	Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)	
 
¨	Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)	
 
¨	Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))	
 
¨	Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))	

 

Item 7.01.	Regulation FD Disclosure	
The Western Union Company (the “Company”) will hold a meeting with investors today, May 9, 2012, at 8:30 a.m. Eastern Time in New York. During the meeting, Hikmet Ersek, President and Chief Executive Officer, Scott T. Scheirman, Executive Vice President, Chief Financial Officer and Global Operations, and other members of the Company’s management team will provide the presentation included as Exhibit 99.1 hereto relating to the Company’s strategy. Information regarding access to the meeting by webcast can be found on the Company’s website at www.westernunion.com under Investor Relations.
The information furnished under this Item 7.01, including Exhibit 99.1 attached hereto, shall not be deemed to be “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, or otherwise subject to the liabilities of that section, nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933, as amended, or the Securities Exchange Act of 1934, as amended, except as shall be expressly stated by specific reference in such filing.
 
Item 9.01.	Financial Statements and Exhibits	
The following Exhibit is furnished herewith.

Exhibit
Number	  	Description of Exhibit	
		
99.1	  	Presentation of the Company dated May 9, 2012.	
 
2

SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

Dated: May 9, 2012	 		 		 	THE WESTERN UNION COMPANY	
				
	 		 	By:	 	/s/ Darren A. Dragovich	
	 		 		 	Darren A. Dragovich	
	 		 		 	Assistant Secretary	
 
3

EXHIBIT INDEX

Exhibit No.	  	Description	
		
99.1	  	Presentation of The Western Union Company dated May 9, 2012.	
 
4

	

SAFE HARBOR
This presentation contains certain statements that are forward-looking within the meaning of the Private Securities Litigation Reform Act of 1995. These statements are not guarantees of future performance and
involve certain risks, uncertainties and assumptions that are difficult to predict. Actual outcomes and results may differ materially from those expressed in, or implied by, our forward-looking statements. Words such
as “expects,” “intends,” “anticipates,” “believes,” “estimates,” “guides,” “provides guidance,” “provides outlook” and other similar expressions or future or conditional verbs such as “will,” “should,” “would” and “could”
are intended to identify such forward-looking statements. Readers of this presentation by The Western Union Company (the “Company,” “Western Union,” “we,” “our” or “us”) should not rely solely on the forward-
looking statements and should consider all uncertainties and risks throughout the Annual Report on Form 10-K for the year ended December 31, 2011, including those described under “Risk Factors”. The statements
are only as of the date they are made, and the Company undertakes no obligation to update any forward-looking statement.

Possible events or factors that could cause results or performance to differ materially from those expressed in our forward-looking statements include the following: (i) events related to our business and industry,
such as: deterioration in consumers' and clients' confidence in our business, or in money transfer and payment service providers generally; changes in general economic conditions and economic conditions in the
regions and industries in which we operate, including global economic downturns and financial market disruptions; political conditions and related actions in the United States and abroad which may adversely affect
our business and economic conditions as a whole; interruptions of United States government relations with countries in which we have or are implementing material agent contracts; changes in, and failure to manage
effectively exposure to, foreign exchange rates, including the impact of the regulation of foreign exchange spreads on money transfers and payment transactions; changes in immigration laws, interruptions in
immigration patterns and other factors related to migrants; our ability to adapt technology in response to changing industry and consumer needs or trends; our failure to develop and introduce new services and
enhancements, and gain market acceptance of such services; mergers, acquisitions and integration of acquired businesses and technologies into our Company, and the realization of anticipated financial benefits
from these acquisitions; decisions to downsize, sell or close units, or to transition operating activities from one location to another or to third parties, particularly transitions from the United States to other countries;
decisions to change our business mix; failure to manage credit and fraud risks presented by our agents, clients and consumers or non-performance by our banks, lenders, other financial services providers or insurers;
adverse movements and volatility in capital markets and other events which affect our liquidity, the liquidity of our agents or clients, or the value of, or our ability to recover our investments or amounts payable to us;
any material breach of security or safeguards of or interruptions in any of our systems; our ability to attract and retain qualified key employees and to manage our workforce successfully; our ability to maintain our
agent network and business relationships under terms consistent with or more advantageous to us than those currently in place; adverse rating actions by credit rating agencies; failure to compete effectively in the
money transfer industry with respect to global and niche or corridor money transfer providers, banks and other money transfer services providers, including telecommunications providers, card associations, card-
based payment providers and electronic and Internet providers; our ability to protect our brands and our other intellectual property rights; our failure to manage the potential both for patent protection and patent
liability in the context of a rapidly developing legal framework for intellectual property protection; changes in tax laws and unfavorable resolution of tax contingencies; cessation of various services provided to us by
third-party vendors; material changes in the market value or liquidity of securities that we hold; restrictions imposed by our debt obligations; significantly slower growth or declines in the money transfer market and
other markets in which we operate; changes in industry standards affecting our business; (ii) events related to our regulatory and litigation environment, such as: the failure by us, our agents or their subagents to
comply with laws and regulations designed to detect and prevent money laundering, terrorist financing, fraud and other illicit activity; changes in United States or foreign laws, rules and regulations including the
Internal Revenue Code, governmental or judicial interpretations thereof and industry practices and standards; liabilities resulting from a failure of our agents or subagents to comply with laws and regulations;
increased costs due to regulatory initiatives and changes in laws, regulations and industry practices and standards affecting our agents; liabilities and unanticipated developments resulting from governmental
investigations and consent agreements with, or enforcement actions by, regulators, including those associated with compliance with, or a failure to comply with the settlement agreement with the State of Arizona; the
impact on our business of the Dodd-Frank Wall Street Reform and Consumer Protection Act, the rules promulgated there-under and the creation of the Consumer Financial Protection Bureau; liabilities resulting from
litigation, including class-action lawsuits and similar matters, including costs, expenses, settlements and judgments; failure to comply with regulations regarding consumer privacy and data use and security; effects of
unclaimed property laws; failure to maintain sufficient amounts or types of regulatory capital to meet the changing requirements of our regulators worldwide; changes in accounting standards, rules and interpretations;
and (iii) other events, such as: adverse consequences from our spin-off from First Data Corporation; catastrophic events; and management's ability to identify and manage these and other risks.

Exhibit 99.1	

	

HIKMET ERSEK
President & Chief Executive Officer
STRATEGIES AND OVERVIEW
Welcome
Hosgeldiniz
Willkommen	

	

TODAY’S PRESENTATIONS
Vision to
complement
existing
strengths with
new capabilities
moving money for better
Strategies and
plans to
accelerate
growth	

	

140M underserved businesses
28M cross-border
Sources:
McKinsey
&
Co.,
“Half
the
World
is
Unbanked”,
October
2009;
CGAP,
“Financial
Access
”
2009;
C.K.
Prahalad,
“Fortune
at
the
Bottom
of
the
Pyramid”
2004;
Hammond
et
all,
“Purchasing
Power
at
the
Bottom
of
the
Pyramid”,
2007;
World
Bank
2009
Bottom
of
the
Pyramid
population,
Company
analysis.
Excludes
1.5B-2B
below
poverty
and
children;
IFC.
2B underserved consumers
OUR VISION
MICRO
2.1M
18.1M
119.8M
120M
650-850M
550-750M
800M-1B
CORE
Migrant Senders
Cash Receivers
250-500M
Businesses
Consumers
Western Union: The Premier Financial Service Provider for the Underserved	

	

OUR FOCUS
Building from a strong foundation
Great assets in place
Leverage strengths to accelerate growth
Grow the core (more choice, more convenience)
Add new customers and services (Business Solutions, Ventures)
Drive margin expansion with accelerated growth
Opportunities and strategies in place
Focus on customers and strategy execution	

	

unmatched global network
unique customer
relationship
with the underserved
strong global brand
global AML/regulatory capabilities
global organization
with significant resources
COMPETITIVE ADVANTAGES	

	

COMPETITIVE ADVANTAGES
200 countries, territories
Over 16,000 corridors
Strong Agent relationships
500,000 locations
Digital, ATMs …
unmatched global network
strong global brand
global organization
with significant resources
global AML/regulatory capabilities
unique customer
relationship
with the underserved	

	

COMPETITIVE ADVANTAGES
*Source: Western Union 2011 global consumer tracking study of consumers in money movement category
strong global brand
global organization
with significant resources
unmatched global network
global AML/regulatory capabilities
unique customer
relationship
with the underserved
Brand awareness*
Global            82%
U.S.                80%
APAC             75%
MEA                88%
Europe/CIS    81%
70 million senders, plus receivers
19 million loyalty cards
Trust, reliability, convenience	

	

COMPETITIVE ADVANTAGES
global organization
with significant resources
Strong balance sheet, cash flow
A-
credit rating
Ability to source multiple currencies
Can leverage infrastructure to
offer new services
Offices and employees
around the world
strong global brand
unmatched global network
global AML/regulatory capabilities
unique customer
relationship
with the underserved	

	

COMPETITIVE ADVANTAGES
global AML/regulatory capabilities
strong global brand
global organization
with significant resources
unmatched global network
unique customer
relationship
with the underserved
Complex AML/regulatory environment
Regulatory scrutiny in all markets
Bank Secrecy Act, Patriot Act, state money-
transfer laws, EU AML …
Western Union resources:
$60M annual spend; more than 600
employees in 6 continents	

	

moving money for better
STRATEGIC GROWTH AREAS
GCFS
Business Solutions
Ventures
Consumer money transfer
Consumer bill pay
Digital money transfer
Stored value
Data Ventures
International B2B payments	

	

GLOBAL CONSUMER FINANCIAL SERVICES
Favorable long-term market demographics
Aging population/need for workers
in developed countries
Surplus of workers in developing countries
Income differentials
WU strategies to accelerate growth
Increase penetration: 1M points of presence
Increase retention, loyalty through enhanced
consumer experience and marketing
*Source: Aite, Cross Border Money Transfer Update, July 2011	

	

Population
WU
Location/
Person
Location/
Sq. Mile
U.S.
314M
51,000
1/6,100
1/70
RUSSIA
138M
16,000
1/8,600
1/400
CANADA
34M
2,900
1/11,700
1/1,300
BRAZIL
206M
11,000
1/18,700
1/300
CHINA
1.3B
33,000
1/39,400
1/110
GLOBAL
CONSUMER
FINANCIAL
SERVICES
–
PENETRATION	

	

Agent Locations
Strong growth opportunity from expanding
Market share* 
n/a
7%
15%
17%
* Source: Aite
** As of April 2012
GLOBAL CONSUMER FINANCIAL SERVICES	

	

BUSINESS SOLUTIONS
Large market opportunity:
$24B revenue*
Underserved customer:
SMEs, specialized
verticals (law firms,
universities, financial
institutions)
* Source: McKinsey and Western Union estimates.	

	

BUSINESS SOLUTIONS
Western Union assets:
Underserved focus
Cross-border money transfer
Global brand
Regulatory
Strong balance sheet
Agent network
Financial institution relationships
Business Solutions assets:
Strong platforms
Expertise
Sales force
Back-end bank network connections	

	

BUSINESS SOLUTIONS
The right growth strategies
Deeper penetration
More geographies
Expanded services and
channels
Significant opportunity to
increase 2% share today	

	

VENTURES
Leverage Western Union’s core
strengths to offer additional services
and obtain new customers
Strengths
Brand
Network
Access to 2B underserved
AML and regulatory capabilities	

	

VENTURES
Currency and Channel-Agnostic Platform with Four Core Functions
Digital Ventures                                                
Access
“money-movement
services”
when
you
want
them,
how
you
want
them
Stored-Value Ventures                                                  
Provide viable, alternative methods of financial inclusion
Data Ventures                                                   
Deepen our customer relationships
Opportunities through our own services and with partners
Send/Receive
Store
Spend
Monetize	

	

BUILDING THE BUSINESS THROUGH PARTNERSHIPS
MasterCard:
A
key
partner
for
building
the
world’s
largest
global
stored-value load network, enabling global bank-based sends and
money transfers to cards.
Ericsson :
The
world's
leading
provider
of
communications
technology connecting Western Union to global m-wallets.
Allianz :
A
leading
global
integrated
financial
and
insurance
service
provider, together with Western Union will explore how to deliver
more financial access to the underserved.	

	

BUILDING THE BUSINESS THROUGH PARTNERSHIPS
Ajay Banga, President and CEO, MasterCard Worldwide	

	

VENTURES
Build and monetize global consumer database of the underserved
Vision to become leading global load/cash access network for
stored value
Expanding digital business from strong foundation
Insurance
Pay
.com	

	

WESTERN UNION RETAIL NETWORK
Western Union is the Hub: connects retail Agents
Trusted brand for consumers (reliable, fast, convenient)
Trusted partner for Agents
Compliance and regulatory
Currency exchange
Data network	

	

WESTERN UNION NETWORK:  RETAIL / DIGITAL / ACCOUNTS
Western Union is the Hub
Trusted brand for consumers
Trusted partner for Agents
Retail, online, mobile …
Compliance and regulatory
Currency exchange
Data network
Connects all form factors	

	

GROWTH PORTFOLIO FOR TODAY AND TOMORROW
Lifecycle stage
Ventures
Business
Solutions
C2C
C2B
Global Consumer
Financial Services
Data
Ventures
Stored
value
Digital
Social
Ventures
*Notes: C2C Retail includes Account-Based Money Transfer (ABMT) and excludes wu.com.
2011 B2B growth excludes Travelex Global Business Payments.  1% of revenue is other and
is not included above.  See appendix for reconciliation of non-GAAP to GAAP financial measures.
2011 Revenue Growth
(constant currency)*
30%
31%
13%
2%
4%	

	

*Notes: C2C Retail includes Account-Based Money Transfer (ABMT) and excludes wu.com.
2011 B2B growth excludes Travelex Global Business Payments.  1% of revenue is other and
is not included above.  See appendix for reconciliation of non-GAAP to GAAP financial measures.
4%
2011 Constant Currency
Revenue Growth*
2%
13%
31%
30%
Accelerate
Single-Digit
20% plus
40%-50%
Low Double
Long-term revenue
growth objectives
79%
C2C Retail
11%
C2B
6%
B2B
2%
Digital
1%
Stored
Value
Good Growth
Low Growth
High Growth
Very
High Growth
Very
High Growth
GROWTH PORTFOLIO –
OPPORTUNITIES FOR ACCELERATION
Q1 2012 -
Percent of Revenue	

	

WESTERN UNION: MOVING MONEY FOR BETTER
Vision: Premier Financial Services Provider for the Underserved
GCFS
Business Solutions
Ventures	

	

SCOTT SCHEIRMAN
Executive Vice President, CFO and Global Operations
TOTAL SHAREHOLDER RETURN
Welcome	

	

moving money for better
GCFS
STRATEGIC GROWTH AREAS
Consumer money transfer
Consumer bill pay
Ventures
Digital money transfer
Stored value
Data Ventures
Business Solutions
International B2B payments	

	

TOTAL SHAREHOLDER RETURN (TSR)
Strong opportunity to drive returns through
business acceleration and cash flow utilization
Opportunity to accelerate
Expansion opportunity as
revenue growth accelerates
2012:
Retire
4-5%
of
shares
2% current yield	

	

TSR –
REVENUE GROWTH
*Note: see appendix for reconciliation of non-GAAP to GAAP financial measures.
-4%
2%
6%
2009
2010
2011
Reported
Revenue Growth
-2%
1%
4%
2009
2010
2011
Organic Constant Currency
Revenue Growth*	

	

TSR –
REVENUE GROWTH
Opportunities for revenue acceleration
Network expansion
Increased customer retention
New types of customers
New services
Economic improvement	

	

79%
C2C Retail
Good Growth
11%
C2B
Low Growth
6%
B2B
High Growth
2%
Digital
Very High
Growth
1%
Stored
Value
Very High
Growth
4%
2011 Constant Currency
Revenue Growth*
2%
13%
31%
30%
GROWTH PORTFOLIO –
OPPORTUNITIES FOR ACCELERATION
*Notes: C2C Retail includes Account-Based Money Transfer (ABMT) and excludes wu.com.
2011 B2B growth excludes Travelex Global Business Payments.  1% of revenue is other and
is not included above.  See appendix for reconciliation of non-GAAP to GAAP financial measures.
Q1 2012 -
Percent of Revenue
Accelerate
Single-Digit
20% plus
40%-50%
Low Double
Long-term revenue
growth objectives	

	

C2C Operating Margin
Operating Margin
TSR –
MARGIN EXPANSION
C2C operating margin expansion offset by other businesses
*Operating Margin excludes one-time items.  See appendix for reconciliation
of Non-GAAP to GAAP financial measures.
25.2%
25.0%
25.2%
26.6%
26.2%
26.2%
2009
2010
2011
GAAP Op. Margin
Op. Margin*
27.3%
28.4%
28.6%
2009
2010
2011	

	

TSR –
MARGIN EXPANSION
Targeting long-term margin expansion; Revenue
growth and productivity initiatives key drivers
Margin Drivers
Revenue growth: operating
leverage
Commissions
Fixed cost optimization
Other Factors
Investments
Acquisition amortization
Currency hedges
Business Mix
Compliance –
Dodd Frank	

	

$4.1B Total Expenses 2011
TSR –
MARGIN EXPANSION
Margin key drivers, variable costs
65% variable costs
Commissions 85% of variable
costs
Expense optimization opportunities
Location expansion
Signing new agents and renewing
existing agents at lower rates
Non-exclusive receive locations in
some markets
Super-agent acquisitions in Europe
($ Billions)
$1.5
$2.6
$2.2
$0.4
Fixed
Variable
Commissions
Ops/Other	

	

C2C Commissions as a Percent of Revenue
TSR –
MARGIN EXPANSION
48.4%
46.1%
46.3%
45.8%
2008
2009
2010
2011	

	

$4.1B Total Expenses 2011
TSR –
MARGIN EXPANSION
Margin key drivers: fixed costs
35% of total costs
Revenue leverage
Expense optimization
Accelerated revenue growth leads
to operating leverage
($ Billions)
$1.5
$2.6
Fixed
Variable	

	

TOTAL SHAREHOLDER RETURN
Net Income Growth
Share Repurchases
Dividends
+ Revenue Growth
+ Margin Expansion
+ Utilization of Operating
Cash Flow	

	

TSR –
UTILIZATION OF OPERATING CASH FLOW
$4.4B
$4.3B
Operating Cash Flow
Net Borrowing Proceeds
Option Proceeds
Other Sources
CAPEX
Dividends
M & A
Share Repurchases
Low Capital Intensity Drives Strong Operating Cash Flow Generation	

	

TSR –
UTILIZATION OF OPERATING CASH FLOW
Capital allocation
Balance sheet framework:  maintain A-
credit rating for business
relationships
Gross debt/EBITDA of approximately 2x
Year-end cash balance of approximately $1.5 billion
Deployment priorities
Reinvest in business
“Normal”
long-term capital spending approximately 3% of revenues (2012 higher)
Strategic M&A
Return to Shareholders	

	

TSR –
UTILIZATION OF OPERATING CASH FLOW
Return of funds to shareholders
Domestic cash availability
Q1 2012 domestic cash balance approximately $700 million
Due to tax agreement and planning, majority of cash generated over next 12
months available domestically
Approximately 35% of operating cash flows going forward
Debt can grow with EBITDA	

	

$0.0
$0.02
$0.04
$0.06
$0.08
$0.10
$0.12
4Q09
4Q10
2Q11
1Q12
Quarterly Dividend
$0
$200
$400
$600
$800
$1,000
$1,200
2009
2010
2011
2012E
Share Repurchase
Dividend
TSR –
UTILIZATION OF OPERATING CASH FLOW
Dividend Levels
Repurchases and Dividends
($ Millions)
Significant Return of Funds to Shareholders
$0.06
$0.07
$0.08
$0.10
$400
$584
$800
$400-
$600
$41
$165
$194
$250	

	

TSR –
UTILIZATION OF OPERATING CASH FLOW
Return of funds to shareholders:  balanced approach
Dividends
Currently $0.10 quarterly
Target annual increases with business growth
Reevaluate with Board periodically
Share repurchase
Strong buy-back, purchase below intrinsic value
Business supports strong cash flow return to shareholders	

	

TOTAL SHAREHOLDER RETURN
Double Digit EPS Growth
Strong opportunity to drive returns through
business acceleration and cash flow utilization
2012:
Retire
4-5%
of
shares
Opportunity to accelerate
Expansion opportunity as
revenue growth accelerates
2% current yield	

	

STRATEGIC GROWTH AREAS
Consumer money transfer
Consumer bill pay
Digital money transfer
Stored value
Data Ventures
International B2B payments
GCFS
Business Solutions
Ventures
moving money for better	

	

Appendix	

	

NON-GAAP MEASURES
Western Union's management believes the non-GAAP financial measures presented provide meaningful
supplemental information regarding our operating results to assist management, investors, analysts, and
others in understanding our financial results and to better analyze trends in our underlying business,
because they provide consistency and comparability to prior periods. These non-GAAP financial measures
include revenue change Custom House, TGBP and constant currency adjusted, operating income margin
excluding  settlement accrual, restructuring and TGBP integration expense, 2012 revenue change outlook
TGBP and constant currency adjusted, Consumer-to-Consumer Retail revenue change constant currency
adjusted, Consumer-to-Business revenue change constant currency adjusted, Business Solutions revenue
change TGBP and constant currency adjusted, Digital revenue change constant currency adjusted and
Stored Value revenue change constant currency adjusted.
A non-GAAP financial measure should not be considered in isolation or as a substitute for the most
comparable GAAP financial measure. A non-GAAP financial measure reflects an additional way of viewing
aspects of our operations that, when viewed with our GAAP results and the reconciliation to the
corresponding GAAP financial measure, provide a more complete understanding of our business. Users of
the financial statements are encouraged to review our financial statements and publicly-filed reports in their
entirety and not to rely on any single financial measure. A reconciliation of non-GAAP financial measures to
the
most
directly
comparable
GAAP
financial
measures
is
included
below.	

	

RECONCILIATION OF NON-GAAP MEASURES
(in millions)
FY2009
FY2010
FY2011
Consolidated Revenue Growth
Revenues, as reported (GAAP)
5,083.6
$      
5,192.7
$      
5,491.4
$  
Reversal of Custom House revenues, including foreign currency translation impact (a)
(30.8)
           
(110.3)
         
N/A
Reversal of TGBP revenues, including foreign currency translation impact (b)
N/A
N/A
(35.2)
$     
Foreign currency translation impact (c)
119.5
          
36.8
             
(38.0)
       
Revenues, Custom House, TGBP and constant currency adjusted
5,172.3
$      
5,119.2
$      
5,418.2
$  
Prior year revenues, as reported (GAAP)
5,282.0
$      
5,083.6
$      
5,192.7
$  
Revenue change, as reported (GAAP)
(4)%
2
%
6
%
Revenue change, Custom House, TGBP and constant currency adjusted
(2)%
1
%
4
%
Consolidated Operating Margin
Operating income, as reported (GAAP)
1,282.7
$      
1,300.1
$      
1,385.0
$  
Reversal of settlement accrual (d)
71.0
             
N/A
N/A
Reversal of restructuring and related expenses (e)
N/A
59.5
             
46.8
        
Reversal of TGBP integration expense (f)
N/A
N/A
4.8
Operating income, excl. settlement accrual, restructuring and TGBP integration expense
1,353.7
$      
1,359.6
$      
1,436.6
$  
Operating income margin, as reported (GAAP)
25.2
%
25.0
%
25.2
%
Operating income margin, excl. settlement accrual, restructuring and TGBP integration expense
26.6
%
26.2
%
26.2
%
Consolidated Revenue Outlook
Revenue change (GAAP)
4
%
6
%
Reversal of TGBP revenues, including foreign currency translation impact (b)
(4)%
(4)%
Foreign currency translation impact (g)
2
%
2
%
Revenue change, TGBP and constant currency adjusted
2
%
4
%
Range	

	

RECONCILIATION OF NON-GAAP MEASURES
(in millions)
FY2011
Consumer-to-Consumer (C2C) Retail Revenues
Revenues, as reported (GAAP)
4,489.9
$     
Foreign currency translation impact (c)
(35.8)
Revenues, constant currency adjusted
4,454.1
$     
Prior year revenues, as reported (GAAP)
4,296.8
$     
Revenue change, as reported (GAAP)
4
%
Revenue change, constant currency adjusted
4
%
Consumer-to-Business (C2B) Revenues
Revenues, as reported (GAAP)
608.9
$       
Foreign currency translation impact (c)
6.4
Revenues, constant currency adjusted
615.3
$       
Prior year revenues, as reported (GAAP)
604.0
$       
Revenue change, as reported (GAAP)
1
%
Revenue change, constant currency adjusted
2
%	

	

RECONCILIATION OF NON-GAAP MEASURES
(in millions)
Business Solutions (B2B) Revenues
Revenues, as reported (GAAP)
161.1
$        
Reversal of TGBP revenues, including foreign currency translation impact (b)
(35.2)
           
Foreign currency translation impact (c)
(5.7)
             
Revenues, excluding TGBP and constant currency adjusted
120.2
$        
Prior year revenues, as reported (GAAP)
106.7
$        
Revenue change, as reported (GAAP)
***
Revenue change, TGBP and constant currency adjusted
13
%
Digital Revenues
Revenues, as reported (GAAP)
126.2
$        
Foreign currency translation impact (c)
(3.4)
             
Revenues, constant currency adjusted
122.8
$        
Prior year revenues, as reported (GAAP)
93.5
$          
Revenue change, as reported (GAAP)
35
%
Revenue change, constant currency adjusted
31
%
Stored Value Revenues
Revenues, as reported (GAAP)
32.3
$          
Foreign currency translation impact (c)
0.4
               
Revenues, constant currency adjusted
32.7
$          
Prior year revenues, as reported (GAAP)
25.1
$          
Revenue change, as reported (GAAP)
29
%
Revenue change, constant currency adjusted
30
%
*** Calculation of growth percentage is not meaningful due to the impact of the TGBP acquisition in November 2011.
FY2011	

	

RECONCILIATION OF NON-GAAP MEASURES
(a)
Represents the incremental impact, including the impact from fluctuations in exchange rates, when applicable, of Custom House on Consolidated revenue.  

(b)
Represents the incremental impact, including the impact from fluctuations in exchange rates, when applicable, of Travelex Global Business Payments ("TGBP") on 
Consolidated revenue.  Also, represents the incremental impact of TGBP on Business Solutions revenue. 

(c)
Represents the impact from the fluctuation in exchange rates between all foreign currency denominated amounts and the United States dollar. Constant currency results exclude 
any benefit or loss caused by foreign exchange fluctuations between foreign currencies and the United States dollar, net of foreign currency hedges, which would not have 
occurred if there had been a constant exchange rate.  

(d)
Represents the accrual for an agreement to resolve the Company's disputes with the State of Arizona and certain other states and to fund a multi-state not-for-profit organization 
focused on border safely and security ("settlement accrual"). 

(e)
Restructuring and related expenses consist of direct and incremental expenses including the impact from fluctuations in exchange rates associated with restructuring and
related activities, consisting of severance, outplacement and other related benefits; facility closure and migration of the Company's IT infrastructure; and other expenses 
related to the relocation of various operations to new or existing Company facilities and third-party providers, including hiring, training, relocation, travel, and professional
fees. Also included in the facility closure expenses are non-cash expenses related to fixed asset and leasehold improvement write-offs and the acceleration of depreciation 
and amortization.

(f)
TGBP integration expense consists primarily of severance and other benefits, retention, direct and incremental expense consisting of facility relocation, consolidation
and closures; IT systems integration; and other expenses such as training, travel and professional fees. Integration expense does not include costs related to the completion 
of the TGBP acquisition. 

(g)
Represents the estimated impact from the fluctuation in exchange rates between all foreign currency denominated amounts and the United States dollar. Constant currency 
results exclude any estimated benefit or loss caused by foreign exchange fluctuations between foreign currencies and the United States dollar, net of foreign currency hedges, 
which would not have occurred if there had been a constant exchange rate.  

Non-GAAP related notes:	

	

STEWART A. STOCKDALE
President & EVP, Global Consumer Financial Services
GLOBAL CONSUMER FINANCIAL SERVICES:
OVERVIEW & STRATEGIES
Bienvenidos
WELCOME	

	

KEY HIGHLIGHTS FROM 2011
Highest growth since 2008
All regions contributed to growth
Payments returned to growth
FY 2011	

	

C2C REVENUE GROWTH 2009 –
2011
Region (reported)
2011
North America
3%
Europe & CIS
3%
Middle East & Africa
4%
Asia Pacific
10%
LACA
7%
All regions contributed to growth in 2011
Priorities in place to help accelerate growth	

	

2012 PRIORITIES FOR GROWTH
Assert  Our
Leadership
Know Customers
and Delight Them
Go Deep in Must
Win Markets
Fuel and Fund the
Growth Vision
RETAIL
PRESENCE
CUSTOMER
EXPERIENCE
ADJACENCIES
OPERATING
MODEL	

	

EXPANDING RETAIL PRESENCE
Accelerate location growth
Win strategic accounts
Fill the “white space”
Invest and drive a sales culture
Hunter vs. Farmer model (150 new positions)
North America –
200
Europe  –
240
MEA  –
10
APAC –
40
LACA  –
100	

	

DIVERSIFYING CLASSES OF TRADE
Leadership in postal networks
Penetrating North America banks
Accelerating new European retail*
Expanding points of presences globally
Flagship locations
ATMs
Kiosks
Convenience stores
*Expanded retail locations available through Payment Services Directive (PSD)	

	

NORTH AMERICA BANKING CLASS OF TRADE
Continued sales momentum
ABMT almost 20% of
bank volume
Accessing new customer
segments
Principal per transaction
double the non-bank class of
trade average
16%
YOY
Bank Class of Trade
Transaction Trends	

	

NEW EUROPEAN RETAIL CLASS OF TRADE
Rapid growth and acceleration
Independent trends are strong
Convenient and accessible
Preferred class of trade by
migrant consumers
New European Retail Transactions*
* Countries Opened by Payment Services Directive (PSD)	

	

Prioritize Agents and Size the Opportunity
Market Size
High
Low
Low
High
AGENT VALUE PROPOSITION
Actively Retain
Develop Strategic
Partnership
Negotiate Aggressively
Actively Optimize	

	

Chetan Mehra, Director, Weizmann Forex Ltd.
AGENT PARTNERSHIP	

	

WEIZMANN FOREX LTD –
INTRODUCTION                  
Weizmann Forex Ltd (WFL):
Multidimensional Weizmann Group
Revenues US $700M
Principal  Agent of Western Union
since 1998
1,700 experienced professionals
servicing valued customers PAN India
Payout made during 2011 US $1.8B	

	

WESTERN UNION –
INDIA
100,000 strategically placed locations
Larger than entire bank branch network
Most reputed brands in India
working with WU
Strong agent relationship
Most trusted brand
98% brand awareness
“
1 Out of Every 5 Global WU Locations”	

	

WEIZMANN FOREX LTD –
RISE IN LOCATIONS
Western Union Financial Services,
India –
21,000
th
Location
The United Western Bank Fort,
Mumbai, India –
March 2005	

	

WEIZMANN FOREX LTD –
WESTERN UNION
PARTNERSHIP: A PROMISING FUTURE
Financial
Inclusion
–
Helping
underserved
Untapped
Market
–
Penetration
Villages and small towns
Continued
Expansion
–
Successful
relationships
More than 26 state owned banks and
12,700 sub agents
Focus on Transforming Business
Western Union Business Solutions
Prepaid cards	

	

	

IMPROVING THE CUSTOMER EXPERIENCE
Customer insights
Communicate and offer new services
Drive share of wallet
Revolutionize the retail experience	

	

PURSUING ADJACENCIES
“Go deep”
in key markets
Account based and intra
“Fill the bucket”
Premier partnerships
More Services
=
More
Profit
per
Customer
More
for
Agents	

	

GLOBAL PAYMENTS RETURNING TO GROWTH
U.S. payments turnaround
Innovation
in
U.S.
cash
and
electronic
More than 10,000 billers
New biller verticals
Small business portal
Text to pay
Strong growth from South America
More than 600 Million Transactions	

	

BRINGING IT ALL TOGETHER
Assert  Our
Leadership
Know Customers
and Delight Them
Go Deep in Must
Win Markets
Fuel and Fund the
Growth Vision
RETAIL
PRESENCE
CUSTOMER
EXPERIENCE
ADJACENCIES
OPERATING
MODEL
Scalable Operating Model to Drive Margin Expansion
as Revenue Accelerates	

	

GLOBAL CONSUMER FINANCIAL SERVICES
LEADERSHIP TEAM
Drina
Yue
Middle East &
Africa
Jean Claude
Farah
Latin America &
Caribbean
Odilon
Almeida
Asia Pacific
North America
Victoria
Lopez-Negrete
Europe & CIS
Jan
Hillered	

	

JAN HILLERED
Senior Vice President, Europe & CIS
EUROPE & CIS
WELCOME
WILLKOMMEN
BIENVENUE
VÄLKOMMEN	

	

EUROPE AND CIS
53 countries
$1.3B 2011 revenues
Top countries
France
United Kingdom
Italy
Germany
Russia
Spain
80M migrants	

	

EUROPE AND CIS
140,000 locations
Western Union International Bank
19 WU.com transaction sites
33 account based MT banks signed
23,000 ATMs active in 6 countries
Launched prepaid card in Germany,
United Kingdom and Austria	

	

	

MACRO ECONOMICS
1.
4.7
1.
7
3.
0.7
4.
0.5
7
1.6
2
0
1.8
7
3.
9
0.7
.3
Eurozone
CIS
France
Germany
Spain
Russia
Italy
UK
Real GDP YoY
Growth Rate, Yearly
2010
2014f
(in %)
2010
2011
2012f
2013f
2014f
Unemployment Rates, Yearly
2008-
2012f (in %)
5
1
3
0.
4.
.
0.
2
2
-
-
2
4
6
8
10
12
14
16
18
20
24
26
2008
2009
2010
2011
2012f
Eurozone
France
Germany
Spain
Russia
Italy
0
22
–
2008
2009
2010
2011
2012
40.
-20.0
0
Sentiment Indicators
European Union
-
0
0.
Source: Eurostat
Source: IHS Global Limited; Copyright ©
IHS Global Limited, 2012. All rights reserved
Source: IHS Global Limited; Copyright ©
IHS Global Limited, 2012. All rights reserved	

	

NEW EUROPEAN RETAIL (PSD)
Sales force increased by 40%
Growing our footprint
Exceeded 2011 target of 1% of
total company revenues
Ensuring customer convenience
Targeting double digit revenue
growth for 2012
“Western Union pays me a
provision on each transaction …
since I’ve been offering Western
Union, my revenue increased by
30%.”
Ayedin
Ugur,
Internet
Café
and
Call
Shop owner, Hamburg, Germany
Agent Testimonial –
Independent, Germany	

	

EURO MONEY TRANSFER
Replicating the success of
U.S. Domestic repositioning
Accelerating growth for low band
offering in Eurozone
Gaining new customers and higher
frequency from existing
FY 2010
FY 2011
Q1 2012
Domestic in Eurozone
Trx growth
Revenue growth	

	

SUPER AGENT ACQUISITIONS (COSTA AND FININT)
Builds on 2009 Fexco acquisition
Moving closer to the customer
Direct control of 30% of distribution network in Europe
Single sales organization
Gaining scale and efficiencies in back office infrastructure	

	

RUSSIA TURNAROUND STRATEGIES
Distribution
Enter retail class of trade
Self service
Brand Awareness
Launch of Sberbank
Marketing programs
Pricing Techniques
Tiered pricing
Attractive high band offer
RUSSIA	

	

GROWTH DRIVERS
Corridor Promotions
Retail Expansion
Grassroots Activations
Dedicated Locations
New Products
Customer Promotion
Pan European Campaigns
New Channels	

	

JEAN CLAUDE FARAH
Senior
Vice
President,
Middle
East
&
Africa
MIDDLE EAST & AFRICA
Bienvenue
WELCOME	

	

MIDDLE EAST & AFRICA
66 countries
$860M 2011 revenues
Top countries
Saudi Arabia
United Arab Emirates
Morocco	

	

40,000
AGENT
LOCATIONS
21 SIGNED CONTRACTS
14 SIGNED CONTRACTS
MIDDLE EAST & AFRICA
Brand awareness 88%
Business mix
Outbound
43%
Inbound
54%
Intra
3%	

	

2011 –
AN EVOLVING ENVIRONMENT
MEA conflicts
Migration shifts
$120 oil price
Moderate economic growth
Emerging opportunities	

	

CONTINUE TO DRIVE WINNING STRATEGIES
Customers
Execution
Growth
Minimize The
Socio-Economic Impact	

	

MEETING OUR CUSTOMER & MARKET NEEDS
Service availability
New agents
Footprint expansion
Nous avons le plaisir de vous
informer de la reprise du service
Western Union en Côte d’Ivoire,
Réception et envoi
de transferts d’argent
SOMALILAND
NAMIBIA	

	

DRIVING GROWTH & BUILDING MOMENTUM
New channel -
ABMT	

	

DRIVING GROWTH & BUILDING MOMENTUM
Driving loyalty	

	

DRIVING GROWTH & BUILDING MOMENTUM
Enhancing visibility	

	

CASE STUDY: DRIVING MEA GROWTH TO APAC
Customer focused
Harnessing opportunity
Portfolio management
Increased presence
4%
4%
6%
6%
ECONOMIC
DOWNTURN
ARAB SPRING
MEA to APAC
(REVENUE)	

	

IN CLOSING
Gulf economies rebounding
Crisis countries opened
Emerging Africa
Channel diversification	

	

DRINA YUE
Senior Vice President, Asia Pacific
ASIA PACIFIC
Welcome	

	

ASIA PACIFIC
44 Countries and territories
2011 Revenues: $660 Million
Top Inbound Countries
India
Philippines
China
Top Outbound Countries
Australia
Malaysia
Singapore
Hong Kong	

	

ASIA PACIFIC: A SNAPSHOT
210,000+ locations
25 ABMT banks signed
7 Mobile partners signed
254  Agents	

	

ASIA PACIFIC
Customer-centric
Enhance in-bound corridors
Build on intra-APAC and outbound
Grow retail network and enable new
channels
Deploy new products to address new
market opportunities
Five Point Strategy To Bolster Growth	

	

*Source: World Bank
MONEY MOVEMENT:
ASIA-PACIFIC IN-BOUND
The Stalwarts and Emerging Tigers
INDIA
CHINA
PHILIPPINES
BANGLADESH
VIETNAM
INDONESIA
Top 10 Recipients of
Migrant Remittances*
1.
India
2.
China
3.
Mexico
4.
Philippines
5.
Egypt
6.
Pakistan
7.
Bangladesh
8.
Nigeria
9.
Vietnam
10.
Lebanon	

	

MONEY MOVEMENT:
APAC REVENUES DIVERSIFYING
With APAC Outbound / APAC Intra / DMT
APAC
INBOUND
64%
APAC
OUTBOUND
8%
APAC
INTRA 25%
DMT 3%
APAC
INBOUND
56%
APAC
OUTBOUND
10%
APAC INTRA
31%
DMT 3%	

	

Malaysia
Hong Kong
Korea
Japan
MONEY MOVEMENT: OUTBOUND KEY PLAYERS
All Corridors In and Out of Asia Pacific
+ Increased GDP growth
+ Aggressive
development agendas
+ Aging population
= Resulting in more migration
within APAC
Australia
Singapore
Taiwan
NZ/Isles	

	

INDIA FOCUS:
NEW CHANNELS TO SEIZE NEW SHARE
India
Remittances:
$64B
*
Leader in cash-to-cash with
100K+ retail network
Opportunity to expand to new
segments
Account based and prepaid cards
launches in 2012
Retail Captures Majority of C2C Transfers
*Source: World Bank Migration Development Brief April, 2012
DIRECT TO
BANK $9B
FOR. CURRENCY
NON-RESIDENT
$28B
CASH-TO-CASH
$13B
A/C TO A/C $14B
$64B
*	

	

JAPAN
FOCUS:
4
CHANNELS
ACTIVATED
-
18
MONTHS
1.
Retail expansion
2.
Online ABMT:
Launched with
Seven Bank
Poised
to
Tap
$5B
*
Market Potential
*Source: Bank of Japan Reports & Research Paper (2011 March)
3.
ATMs:
16,000
4.
Retail kiosks: 9,000	

	

Malaysia
Thailand
Japan
Korea
Vietnam
Philippines
China
Australia
Alternative Channels Serving New Consumers
Indonesia
India
Philippines
China
Malaysia
Philippines
Bangladesh
Vietnam
China
Japan
Japan
Taiwan
Australia
NZ
INTO 90+% BANKS
RETAIL  TO
BANK ACCOUNT
SELF-SERVICE
MOBILE DEALS:
7 MNOs
BUYING WITH
CASH ONLINE
24/7 ATMs: 16K+
KIOSKS: 10+
WU.COM
WORLD BUYS
FROM ALIBABA
ONLINE PORTAL
25 BANKS:
SEND/RECEIVE
MONEY MOVEMENT : ADJACENCIES/GOING DEEP	

	

VICTORIA LOPEZ-NEGRETE
Senior Vice President, North America
NORTH AMERICA
Bienvenidos
WELCOME	

	

NORTH AMERICA
Three countries
$1.7B 2011 revenues
Top corridors:
U.S. domestic money
transfer
U.S. to Mexico
U.S. to Philippines	

	

NORTH AMERICA
70,000 locations
Long standing relationships
7 ABMT banks signed	

	

STRATEGIES TO DELIVER GROWTH
Enhance the customer and agent experience
Expand and diversify distribution footprint
Broaden the product portfolio
Continue U.S. payments turnaround
Evolve and improve Mexico business	

	

IT ALL BEGINS AND ENDS WITH OUR CUSTOMER
20M money transfer senders
Providing consumer choice
4.0
7.5
Annual Transaction per Consumer
Single Product vs. Multi Product
Single
Multi	

	

-7%
-8%
-9%
5%
18%
28%
35%
29%
21%
19%
14%
11%
12%
Q1 09
Q2 09
Q3 09
Q4 09
Q1 10
Q2 10
Q3 10
Q4 10
Q1 11
Q2 11
Q3 11
Q4 11
Q1 12
Domestic Transactions
Transactions
Growth
U.S. DOMESTIC MONEY TRANSFER & CONSUMER BEHAVIOR
All time highs
Higher frequency
New consumers
Short distance sends
Intra city
Growing from 10% to more
than 20% of total volume
Losing share
Repositioning
Revenue
growth	

	

WINNING DISTRIBUTION
Continued momentum with banks
Retail and account based solutions
Strong distribution with large retailers
Pursuing non-traditional networks
Retail expansion via independents
Small shops in ethnic neighborhoods	

	

GROWING MEXICO FOR BETTER
Addressing market challenges
Opening of in-country network
Direct relationships with agents
Expanded  services / channels
Drive WU brand equity	

	

CLOSING SUMMARY
Successful execution on the strategy
Improving portfolio of services for sustained growth
Solid momentum with banks
Expanding distribution & product diversification
Investing in Mexico to accelerate growth	

	

ODILON ALMEIDA
Senior Vice President, LACA
LATIN AMERICA AND THE CARIBBEAN
Bem-vindos
Welcome
Bienvenidos	

	

LATIN AMERICA
AND THE CARRIBBEAN
48 countries and territories
$620M 2011 revenues
Top countries
Argentina
Colombia
Dominican Republic
Jamaica	

	

LATIN AMERICA  AND THE CARRIBBEAN
40,000 locations
3,500 billers
5 mobile contracts
Bolivia
El Salvador
Guatemala
Honduras
Paraguay	

	

LACA STRATEGIES DRIVING GROWTH
Money transfer by phone to account
Argentina, Brazil, Chile,
Ecuador and Peru
350 Banks
150M account holders
Payments expansion
Peru, Panama, Venezuela and Brazil	

	

PAGO FACIL CONTINUES TO DELIVER VALUE
Acquisition completed
in 2006
Bill Payments in
Argentina
Expanding in select
markets	

	

LACA
MONEY
TRANSFER
&
BILL
PAYMENTS
REVENUE
GROWTH
RATE
10% CAGR
(2006  -
2011)	

	

LACA HAS DIVERSIFIED ITS REVENUE STREAM
Money Transfer & Bill Payments Revenues (Mix %)
Money Transfer & Bill Payments Revenues (Mix %)
Outbound & Intra
Inbound
Payments
2006
2008
March 2012	

	

LACA IS SET UP FOR CONTINUED GROWTH
Grow the retail network
Continue driving revenue mix strategies
Build presence in Brazil
Expand Account Based Money Transfer
Extend offerings across multiple channels	

	

RAJ AGRAWAL
President, Business Solutions
BUSINESS SOLUTIONS: OVERVIEW & STRATEGIES
WELCOME
Namaste	

	

STRATEGIC AREA OF GROWTH FOR WU
Low double-digit revenue
growth
Long-term trade growth
at ~2X GDP
13% revenue growth (constant
currency) for legacy WUBS
organization in 2011
Approximately $400MM
revenue in 2012
$24B market opportunity
~1,900 employees
95,000+ customers	

	

Leading propositions:
Financial institutions
Law firms
Universities
Strong product and functionality
capabilities
Extensive banking relationships
Leading provider of international
business payments
71 country ACH clearing
Two Great
Organizations
Better as One
COMPLEMENTARY ASSETS AND CAPABILITIES
Reliable, flexible and easy-to-use
platforms
Large network of correspondent
banks
Local market expertise / diverse
range of countries
Balance sheet strength
Brand
Licensing and compliance
business solutions	

	

Payment
Retail to retail
Account to account
Typical PPT
$300 -
$500
$15,000 -
$25,000
Revenue
Mainly transaction fee
Mainly FX spread
Typical RPT
$15 -
$30
$75 -
$150
Sales Channel
FLA’s / Retail
Direct Sales / Dealing
BUSINESS OVERVIEW
Money Transfer (C2C)
Business Solutions (B2B)
Payment
Cross-border
Cross-border
Core Customers
Focus on underserved
Focus on underserved
Brand
Trust, speed, reliability
Trust, speed, reliability	

	

Tools and operational support
to manage large payment files;
wide range of currency options
Pay “From Your Account”
Cash payment options
Marketplace solutions
Branch solution
Electronic solutions
Spot, forward, options
Payment accuracy,
speed and administration
Multiple countries
Cost
Escrow
Time
Tracking
Market fluctuations
Carpet Importer
Hassan Bassir
Handbag Exporter
Miahua Huang
Pension/
Payroll
OUR CUSTOMERS
THEIR PAIN
OUR SOLUTION	

	

OUR CUSTOMERS
THEIR PAIN
OUR SOLUTION
Financial
Institutions
Law Firms
Education
Charities
Investment:
systems/staff
Time to market
Collect and reconcile tuition
and fees from international
students
Managing multiple inbound and
outbound currencies
Global movement of funds,
often remote;
donor management
FI resells WUBS FX solution
Local currency and easy payment
process; broad range of currencies;
reconciliation
Integrated with existing accounting
systems; risk management and
scheduled payments
Simplified management of incoming
and outgoing funds	

	

PAYMENTS COMPLETED
IN MULTIPLE METHODS
Same day and next
day high-value wires
Low-value wires
Domestic funds
transfer (EFT)
International drafts
Real-time
communication
OUR PRODUCTS
Simple
Rate Certainty
SPOT PAYMENTS
Future FX transaction
Risk management tool
FORWARD CONTRACTS
Flexibility
EXCHANGE RATE BIDS/OPTIONS	

	

OUR CHANNELS
Branch Model
Partners / Self-service
direct application use
Simplified, web-based
platform	

	

OUR CHANNELS
Branch Model
Partners / Self-service
direct application use
Simplified, web-based
platform	

	

OUR CHANNELS
Branch Model
Partners / Self-service
direct application use
Simplified, web-based
platform	

	

COMBINING “BEST OF BOTH”
BUSINESSES TO DRIVE GROWTH
Geographic
Expansion
Direct in top
importing markets
Scalable partner
and online
models
elsewhere
Product
Choice
Charity hub
Account to retail
Multiple
Channels
Direct
Online,
self-service
Vertical channel
partners
Agents
Target Customers:
Wider View
Industry verticals
Repeat payments:
high volume, low
principal
Exporters
Risk Management	

	

GROWTH STRATEGY
Europe:
Country
Asia:
Significant
Opportunity
25 send countries
135+ currencies
200+ countries
71 countries
through direct
clearing network
WUBS Existing Country
expansion	

	

EXECUTION PRIORITIES
Deliver on growth objectives
Gain share
Geographic, product and channel expansion
Retention and expansion of wallet share with existing clients
Acquire new clients through investment in direct sales resources
Continued growth via partnership model
Integration focus
Scale
Cost efficiency	

	

KERRY AGIASOTIS
Regional Divisional Director, APAC
BUSINESS SOLUTIONS: CUSTOMERS & SALES
WELCOME	

	

MORE THAN 95,000 CLIENTS GLOBALLY
Presence in 25 countries
Customers across all industries
and market segments
Strong customer centric
business model
Experts in foreign exchange and
international payments
135+ payment currencies to 200+
countries, 71 directly through
clearing network	

	

Branch Hubs –
includes all roles supporting complete customer lifecycle
Sales Offices –
remote sales executives with geographic or vertical responsibility
SALES ORGANIZATION DESIGN
Localized design to achieve in
market objectives
Right mix of Hunter and Farmer
resources
Hub and spoke geographic
structure
Important enabler of
geographic expansion strategy	

	

Corporate ($500M+)
High volume integrated payments
Select
Opportunities
SME IS THE FOUNDATION OF OUR BUSINESS
CLIENT GROWTH IN ALL SEGMENTS
SME ($10M-$500M)
FX and payment process management
Micro (<$1M-$10M)
Simple cost effective payments
Direct
Sales
On-Line
Service
Channel	

	

EMBEDDED PAYMENTS THROUGH VERTICAL SOLUTIONS
The benchmark service for banks, universities and law firms
Integrated with existing core processing or ERP systems
More than 700 Financial Institution clients world wide
Expanded services for clients of mid-tier financial institutions
Financial
Institutions
Simplifies payments for international students made in local currency
Drives back office reconciliation efficiencies for education institutions
Educational
Institutions
Tailored solution to the Legal IP industry
Enables price certainty to clients for future payments
Law Firms	

	

DIANE SCOTT
Executive Vice President & Chief Marketing Officer and
President, Western Union Ventures
WESTERN UNION VENTURES
WELCOME	

	

VENTURES:  STRATEGIC FOCUS
The preference for cash is strong globally **
Leverage Our Core Assets: Brand, Customer, Network, Compliance
% cash payments and purchases by region***
57%
96%
84%
96%
99%
96%
61%
*Source: McKinsey & Co., “Half the World is Unbanked”, October 2009;  CGAP, “Financial  Access” 2009; C.K. Prahalad, “Fortune at the Bottom of the Pyramid” 2004; 
Hammond et all, “Purchasing Power at the Bottom of the Pyramid” , 2007; World Bank 2009 Bottom of the Pyramid population,  Company analysis
**Source: McKinsey “Perspectives on Worldwide Payments”, February 2010    ***%=C2B Payments & Consumer Purchases in Cash by Region
Connecting
2B*
Underserved
Consumers
and
Retail
to
a
Digital
World	

	

WU 3.0
Transaction
Focused
Gold Card
Membership
WU 2.0
Registered Customer
Relationships
Creating Loyalty
19M Members, 70 Markets
BUILDING DEEPER CUSTOMER RELATIONSHIPS
WU 1.0
Processing                 
Transactions
A Deeper
Relationship,         
Part of Their Daily Lives	

	

MARKET, CUSTOMER AND TECHNOLOGY
ENABLED INNOVATION
Data Ventures
(Value Add Services –
Attachment Revenues)
Digital Ventures
(Web, Mobile –
New Channels)
Stored Value Ventures
(Card, Mobile, Digital –
New Products)
Send / Receive
Store
Spend
Monetize
1
2
3	

	

DIGITAL: A GROWING MARKET OPPORTUNITY
Fast growing digital market
Market share opportunity
Channel adoption growth
New customer segments
Smartphone adoption
Growth in remittance and
expansion to new use cases
International P2P Money Transfer (IMT)
USD Billions in principal
Source: McKinsey Payment Map 2010, Aite, World Bank Analyses
wu.com
revenue
CAGR
40-50%
24% p.a.
20
37
110
eChannel
2005
2010
2015
eChannel
13% p.a.	

	

DIGITAL VENTURES
Today –
Gaining Momentum
Growth accelerating from single digit to
35% in 2011
$35M investment in new products,
technology and talent (2012)
Enhanced pay in/pay out options
WU Mobile as a stand alone financial
service or with 3
rd
party mobile partners
Vision: The Largest Cross Border Digital “Agent”	

	

STORED VALUE: AN ATTRACTIVE OPPORTUNITY
Prepaid market forecasted to grow at a
20% CAGR globally
through 2015
$628B market opportunity (GDV)
Estimated global market revenue opportunity
of $13 - $20B
Complementary and large revenue potential
Monetizing remittance flows
Utilizing the WU agent base beyond
Money Transfer
Source: BCG MasterCard Prepiad Market Sizing (2010) and internal estimates.	

	

STORED VALUE VENTURES
Today –
Gaining Momentum
2012-geographic expansion to
10 markets
Broaden customer relationships to
enable adjacent revenues
Offer new ways for customers to
access stored value
Enable P2P money transfers,
bill pay and more
Leverage partnership model to drive scale
Vision: The World’s Largest Global Reload/Cash Access Network	

	

DATA VENTURES: BIG DATA…
GLOBAL SCALE
Truly global, 200+ markets
Migrant diaspora knowledge depth
SME/VSE unique insights
Monetization opportunities
Cross sell other financial services
Co-branded partner offerings
Data augmentation
Vision: The World’s Largest
Database Of Underserved Customers
Western Union
Customer Base Underserved Beyond Money Movement	

	

Western Union Ventures
Connecting the 2 Billion Underserved
STORED VALUE
DATA
DIGITAL	

	

KHALID FELLAHI
Senior Vice President & General Manager,
Western Union Digital
WESTERN UNION VENTURES: DIGITAL
Bienvenue
WELCOME	

	

Current state
Future state
WESTERN UNION DIGITAL ROADMAP
Digital presence online and mobile
$100M+ revenue, growth
accelerating from single digit to
35% in 2011
Limited features, customer
experience
Strategic partnerships with mobile
network operators
Enabling digital channels globally
$500M+ revenue by 2015, millions of
customer relationships send/receive
State of the art platform
Global hub connecting all combinations
of accounts, wallets and cash
Significant investment, dedicated
San Francisco office
80% of new                 customers new to the franchise!
.com	

	

FOCUS ON KEY FEATURES & FUNCTIONALITIES
WU-Wallet foundation
WU Pay International deployment
Mobile channel expansion
Expanded “Account Funding”
Account to Account products
Mobile Wallet partnerships	

	

KEY RECENT DEVELOPMENTS
Smartphone access
Launched in May 2011 in U.S.
iPhone, Android, BlackBerry
Unique advanced features for
payments
10%+ of online C2C transactions
in U.S.
Higher share of wallet
Expanding to new geographies	

	

ACCOUNT
KEY RECENT DEVELOPMENTS
New service for bank account payout
Launched in December 2011 in U.S.
Recently expanded to U.K., Australia
Payout to banks in 38 countries
90% new customers/use case
Expanding to new payout geographies	

	

KEY RECENT DEVELOPMENTS
WU Pay -
proprietary
alternative payment method
Acquired startup eBillme
Bank transfer/cash 
Portfolio of gift card and
merchant for e-commerce
Activating in the U.S., selected
geographical expansion	

	

MOBILE TRANSACTION SERVICES
GSMA lists
120+ initiatives globally
WU approximately
30 partners globally
11 countries live/12 partners
Established brand and presence
Early stages,
3-5 year opportunity
Partnering with MNOs, Banks, and Independents to Enable Mobile Transactions	

	

MIKE HAFER
Senior Vice President, Stored Value
WESTERN UNION VENTURES: STORED VALUE
WELCOME	

	

WU 3.0
Transaction Focused
Gold Card Membership
WU 2.0
Registered Customer
Relationships
Created loyal WU
relationships with 19M active
members across 70 markets
A deeper relationship that’s
part of their daily lives
BUILDING DEEPER CUSTOMER RELATIONSHIPS
WU 1.0
Processing Transactions	

	

CONSUMER-FOCUSED SOLUTIONS USING WU ASSETS
Via mobile SMS
Phone/IVR
Online
Prepaid
Agent Locations
Utilizing
the
Remittance
“Fuel”
to
Drive
Convenience
and
Preference
PHILIPPINES
Receive Options	

	

CONSUMER-FOCUSED SOLUTIONS USING WU ASSETS
Consumer Focused Model Using WU’s Unique Assets to Differentiate
UNITED STATES
Strong consumer value
Strong satisfaction ratings vs. competitors
Integrated MT/BP driving utility
Source: Absolute Data proprietary Prepaid Card research, August 2011	

	

A GO TO MARKET STRATEGY LEADING TO
ACCELERATED GROWTH
Utilizing a Dual Approach to Accelerate Growth Globally in Key Markets
Expanding presence and success in U.S.
India stored value account to improve
convenience, monetize receivers, grow share of
wallet and expand intra opportunity
Western Union
Launches Markets
Airpak agent partnership leverages strong in
country presence along with WU brand loyalty and
inbound remittance “ fuel ”
Utilize Partnerships
to Launch Markets
El Salvador
Nicaragua
United States
India*
European Union
Jamaica*
* Coming soon.	

	

VISION: THE WORLD’S LEADING
GLOBAL LOAD/CASH ACCESS NETWORK
Funds In/Out Services
Funds in available in all markets
Funds out in select markets based on
ATM/POS environment
Expanding service already in U.S. and
Argentina
Partnership with MasterCard rePower
Funds in/funds out drives utility, usage, convenience
Expand and Enable Funds In/Out for Stored Value Worldwide
Have begun
global expansion
in key markets	

	

STORED VALUE —
WU ON AN UPWARD TRAJECTORY
Global expansion
New customers
Maximize network
distribution
Grow partnerships
2
countries
40
countries
10
countries
2010
2012
2015	

	

DIANE SCOTT
Executive Vice President & Chief Marketing Officer and
President, Western Union Ventures
BRAND
WELCOME	

	

FIVE NUMBERS TO REMEMBER
*Source: Western Union 2011 global consumer tracking study of consumers in money movement category
Underserved consumers
SMEs with cross-border
payment needs
Agent locations
Trust in the brand
Global brand awareness*	

	

OUR BRAND IS UNIQUELY POSITIONED ON
THE GLOBAL STAGE
Western Union enables customers to
move up from the bottom of the pyramid.
This is one of the most compelling and
consequential trends of our time.
The business opportunity is massive.	

	

WESTERN UNION IS THE
MOST GENUINE GLOBAL
MAINSTREAM BRAND	

	

WHERE A SMARTPHONE CAN HARDLY BE FOUND,
THERE’S ALWAYS A WESTERN UNION AROUND THE CORNER	

	

WHERE RETAIL BRANDS MIGHT BE IN 10 YEARS,
WESTERN UNION IS ALREADY THE PLACE TO BE	

	

WHERE DIGITAL BRANDS ARE BEGINNING TO GO,
WESTERN UNION IS ALREADY A HIGHLY TRUSTED BRAND	

	

MOVING MONEY FOR BETTER
Places
Western
Union
at
a
pivotal
point
in
a
customer’s
life
and
business
A
purpose-driven,
do-brand
inspired
by
the underserved consumers and businesses
A modern brand platform, inspiring
new
behaviors,
elevating
engagement
Lifting
up
the
brand
to
succeed
across
new
and
existing
segments	

	

ENGAGING GLOBAL BRAND BUILDING ACTS
Rolling series of engaging brand
acts over seven months
9.5 billion total media impressions
4,700 media placements globally
767 million digital impressions
95 million social media impressions
Site visits from over 205 markets
Raising company profile and
establishing relevancy with
younger, more connected
audience	

	

BUILDING THE BRAND AT THE MOMENT OF TRUTH
Enhancing our global
brand image and
experience through
westernunion.com
DIGITAL
RETAIL
New interactive
merchandising unit to
improve customer
experience
MOBILE
Expanding access to
payment services through
mobile devices	

	

STRETCHING THE BRAND EVEN FURTHER
Refined
brand
architecture
clearly
provides
an
ownable
platform
for
our
products, services and partnerships
We are evolving visually our brand as we reach out to new segments with
greater
digital
access,
beginning
with
the
WU
branding
in
newer
channels	

	

WESTERN
UNION
BRAND
–
ON
THE
MOVE
A purpose - driven, do - brand inspired
by underserved consumers and
businesses globally
2 Billion Customers Are Waiting.