EX-99.2 3 dex992.htm PRESENTATION OF THE WESTERN UNION COMPANY Presentation of The Western Union Company
1
2008 Investor’s Meeting
June 20, 2008
Exhibit 99.2


2
Gary Kohn
Vice President Investor Relations


3
Safe Harbor
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”
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 discussed
under “Risk Factors”
included within the Annual Report on Form 10-K for the year ended December 31, 2007.  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:  changes in general economic conditions and economic conditions in the geographic regions and
industries in which we operate; changes in immigration laws, patterns and other factors related to immigrants; technological
changes, particularly with respect to e-commerce; the failure by us, our agents or subagents to comply with our business and
technology standards and contract requirements or applicable laws and regulations, especially laws designed to prevent money
laundering and terrorist financing; our ability to attract and retain qualified key employees and to successfully manage our workforce;
changes in foreign exchange rates, including the impact of the regulation of foreign exchange spreads on money transfers; adverse
movements and volatility in debt and equity capital markets; political conditions and related actions by the United States and abroad
which may adversely affect our businesses and economic conditions as a whole; failure to maintain sufficient amount or types of
regulatory capital to meet the changing requirements of our various regulators worldwide; continued growth in the money transfer
market and other markets in which we operate at rates approximating recent levels; implementation of agent contracts according to
schedule; our ability to maintain our agent network and biller relationships under terms consistent or improved with those currently in
place; interruptions of United States government relations with countries in which we have or are implementing material agent
contracts;
deterioration
in
consumers’
and
clients’
confidence
in
our
business,
or
in
money
transfer
providers
generally;
successfully
managing credit and fraud risks presented by our agents and consumers; adverse rating actions by credit rating agencies; liabilities
and unanticipated developments resulting from litigation and regulatory investigations and similar matters, including costs, expenses,
settlements and judgments; changes in United States or foreign laws, rules and regulations including the Internal Revenue Code,
and governmental or judicial interpretations thereof; our ability to favorably resolve tax matters with the Internal Revenue Service and
other
tax
jurisdictions;
changes
in
industry
standards
affecting
our
business;
changes
in
accounting
standards,
rules
and
interpretations; competing effectively in the money transfer industry with respect to global and niche or corridor money transfer
providers, banks and other nonbank money transfer services providers, including telecommunications providers, card associations
and card-based payments providers; our ability to grow our core businesses; our ability to develop and introduce new products,
services and enhancements, and gain market acceptance of such products; our ability to protect our brands and our other
intellectual
property
rights;
successfully
managing
the
potential
both
for
patent
protection
and
patent
liability
in
the
context
of
a
rapidly developing legal framework for intellectual property protection; any material breach of security of or interruptions in any of our
systems; mergers, acquisitions and integration of acquired businesses and technologies into our company and the realization of
anticipated synergies from these acquisitions; adverse consequences from our spin-off from First Data Corporation, including
resolution of certain ongoing matters; 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 the business mix;
cessation of various services provided to us by third-party vendors; catastrophic events; and management’s ability to identify and
manage these and other risks.


4
Introduction –
Executive Committee
Introduction –
Executive Committee
Gail Galuppo
EVP and Chief Marketing Officer
Robin Heller
EVP, Operations and IT
Hikmet
Ersek
EVP and Managing Director, Europe/Middle
East/Africa/South Asia
Royal Cole
EVP and General Manager, Payment Services
Guy Battista
EVP and President, Western Union Financial
Services
David Barnes
EVP, Strategic Development and Mergers and
Acquisitions
Liz Alicea-Velez
EVP, Latin
America/Caribbean
Christina Gold
President and Chief Executive Officer
Scott Scheirman
EVP and Chief Financial Officer
Grover Wray
EVP, Human Resources
David Schlapbach
EVP, General Counsel and Secretary
Anne McCarthy
EVP, Corporate Affairs
Ian Marsh
EVP and Managing Director, Asia Pacific


5
Regional Vice Presidents
Regional Vice Presidents
Patricia Riingen
Philippines & Indo China
Andrew Ong
North Asia
Anil Kapur
South Asia
Odilon
Almeida
South America
J.C. Farah
Middle East, Pakistan & Afghanistan


6
Christina Gold
President & CEO


7
Accomplishments
Accomplishments
Successful spin-off from First Data
Solid financial results in light of difficult U.S. market
Strides on innovation
Cost structure improvement


8
Accomplishments
Accomplishments
Stabilized domestic C2C business
Future growth in U.S. from
Investing in brand awareness
Customer acquisition
Gold Card
Vigo domestic and mobile money transfers
westernunion.com
Outpacing market in Mexico
Positive revenue growth in 2008


9
Worldwide Opportunity
Worldwide Opportunity
Existing worldwide
boundaries are
clearly fading,
creating greater
economic
opportunities


10
Leading the Global Money
Transfer Marketplace
Leading the Global Money
Transfer Marketplace
345,000 agent locations
Well-known brand
Globally diverse revenue stream
Scalable infrastructure
Industry-leading compliance capabilities
Solid financial position
Long-term EPS growth
objective: 15%-18%


11
4
Improve profitability
by leveraging scale,
reducing costs
and effectively
utilizing capital
Western Union Strategy
Western Union Strategy
4 key pillars for long-term growth
1
Accelerate profitable
growth in the
global cash money
transfer business
2
Expand
and globalize the C2B
payments business
3
Innovate new products
and services for our
target customers


12
Western Union Strategy
Western Union Strategy
2008 remittance market
estimated at $400 billion
and continues to grow 8%*
Our remitted principal
consistently growing
at 20%
Need for cash transfer
Well positioned to attract
and retain customers
1
Accelerate profitable
growth in the
global cash money
transfer business
*Source: Aite


13
Western Union Strategy
Western Union Strategy
Global migration trends are becoming more diverse
Complex regulatory environment
Customers’
needs are expanding
Growing our core business means adapting to an
evolving money transfer industry


14
Evolving our distribution network
Network growth and maximization
Enhancing the customer experience
Improving economics of our agent relationships
Western Union Strategy
Western Union Strategy


15
Open non-traditional distribution channels
Provide our service to on-line bank customers
Western Union Strategy
Western Union Strategy


16
Expansion of our Vigo Brand
Differentiated product offering
More competitive to broader range of consumers
Build out “send side”
throughout Western Europe
Western Union Strategy
Western Union Strategy


17
Consistent brand messaging
Building on the essence of our brand
Western Union Strategy
Western Union Strategy


18
Western Union Strategy
Western Union Strategy
One of the biggest
long-term opportunities
Primarily only in two
countries today
Goal is to double
Payments revenue
Growth to be organic
and from acquisitions
2
Expand
and globalize the C2B
payments business


19
Real-time, bill payment posting
Immediate bill payment through existing on-line
banking platforms
Potential to reach new customers
Western Union Strategy
Western Union Strategy


20
Enabling convenient payment options
Western Union Strategy
Western Union Strategy


21
Expansion beyond traditional U.S. core
Build on successful Pago Fácil
acquisition
Match our resources to needs of consumers and billers
Western Union Strategy
Western Union Strategy


22
Introduce Vigo bill payment offerings
Extend Vigo brand to new C2B customer
Vigo can sit “side-by-side”
with competitors
Western Union Strategy
Western Union Strategy


23
Western Union Strategy
Western Union Strategy
Dedicated resources to 
capture the opportunity
Well positioned to
identify industry trends
Leading innovation
Attract new customers
and sell more to
existing customers
3
Innovate new products
and services for our
target customers


24
Mobile money transfer
Conducting active market tests
Western Union Strategy
Western Union Strategy


25
Micro lending
Example: PrimeCredit
in Hong Kong
Western Union Strategy
Western Union Strategy


26
Western Union Strategy
Western Union Strategy
Expand margins and
improve profitability
Leverage scale
Reduce expenses
4
Improve profitability
by leveraging scale,
reducing costs
and effectively
utilizing capital


27
Efforts to expand margins
Operating center closings and relocations
Renegotiating agent commissions
Relationship
stability
with
“win/win”
agreements
Western Union Strategy
Western Union Strategy


28
2002
South America was a $200M revenue business
Predominantly inbound from the U.S.
No meaningful bill payment revenue
Case Study –
South America
Case Study –
South America


29
2002
South America was a $200M revenue business
Predominantly inbound from the U.S.
No meaningful bill payment revenue
2007
Doubled revenue since 2002
Case Study –
South America
Case Study –
South America


30
Case Study –
South America
Case Study –
South America
Inbound revenue from the U.S. grew modestly
Inbound revenue from countries other
than the U.S. doubled
Location additions
Targeted South American marketing campaigns


31
South America outbound
revenue doubled
Intra-country money
transfer revenue up 20x
Case Study –
South America
Case Study –
South America


32
Case Study –
South America
Case Study –
South America
Acquisition
of
Pago
Fácil
made
us
the bill payment leader in Argentina
More than 5,000 locations
countrywide


33
Case Study –
South America
Case Study –
South America
Today
Operating margin improved 500 basis points
South America is a diversified $400M inbound,
outbound, intra and bill payment marketplace
First quarter 2008 revenue grew 21%


34
Summary
Summary
Execution of our growth strategy will result
in business that is…
Larger
Diversified
Profitable
Customer focused


35
Hikmet
Ersek
Executive Vice President
& Managing Director
Europe, Middle East, Africa, South Asia


36
External factors
Internal capabilities
Growing the business while expanding margins
Opportunities for Growth
Opportunities for Growth


37
Opportunities for Growth
Opportunities for Growth
External factors
Remittances more stable than private capital flows*
Favorable migration patterns and economic trends
Cash is needed at both ends of the transaction
*Source: Migration Policy Institute


38
Opportunities for Growth
Opportunities for Growth
Internal factors
Monitor 15,000 corridors
Global view
Most extensive remittance network


39
Opportunities for Growth
Opportunities for Growth
Growing the business while expanding margins
Our proven formula for growth
Recognizing money transfer corridors
Building agent network
Invest to raise brand awareness
C2C is our fastest-growing business
More than half of our total revenue today non-U.S.
originated and grew 23% in 2007


40
Opportunities for Growth
Opportunities for Growth
Growing the business while expanding margins
Outbound growth
By offering services to individuals who have relocated to
new markets with strengthening economies
Russia


41
Opportunities for Growth
Opportunities for Growth
Growing the business while expanding margins
Intra growth
Alternative distribution
channels
westernunion.com


42
Opportunities for Growth
Opportunities for Growth
Growing the business while expanding margins
Vigo test in Italy
Attracts new customer
“Side-by-side”
offering with competitors
Expansion plans for Europe


43
Opportunities for Growth
Opportunities for Growth
Growing the business while expanding margins
Agent commission rates
Lower rates for new agents
Renegotiate rates with existing agents
“Win / Win”
agreements


44
Opportunities for Growth
Opportunities for Growth
Case Study –
Philippines, India and China (PIC)
Represents a $70B market*
Approximately 20% of global remittances
2002-2007 revenue CAGR of 47%
Margins expanded to 24% in 2007 from 2% in 2002
85,000 agent locations
High brand awareness
*Source: World Bank


45
Opportunities for Growth
Opportunities for Growth
Case Study
India has explosive growth potential
World’s largest receive market
Remittances estimated to be $27B in 2007, nearly doubled
since 2002*
*Source: World Bank


46
Opportunities for Growth
Opportunities for Growth
Case Study
Western Union is positioned to be the growth
leader in India
More than 50,000 agent locations
80% brand awareness
50 employees working in 8 offices
Innovation potential -
mobile


47
Opportunities for Growth
Opportunities for Growth
India has robust growth potential
From 2002-2007, revenue grew at a compound
annual rate of 46%
Operating margin widened to 25% in 2007,
up from 11% in 2002


48
Accelerate profitable
growth in C2C
Aligning Our Resources
Aligning Our Resources
Western Union brand
Extensive network
Innovation
Expertise


49
Royal Cole
Executive Vice President & General Manager
Payment Services


50
C2B –
Payments Business
C2B –
Payments Business
Overview
Represents $720M revenue (15% of our total revenue)
Revenue primarily from U.S. and Argentina
Goal is to double C2B revenue in the next 5 years
Organic growth
Acquisitions


51
Payments Growth Strategy
Payments Growth Strategy
1) Expanding Our Product Offerings
Using our core assets to meet the evolving consumer and
client demands
2) Active Global Expansion


52
Payments Growth Strategy
Payments Growth Strategy
1) Expanding Our Product Offerings
Building On Our Strengths
6,100 biller relationships
Cash and electronic payments
Real-time payment posting capabilities
Numerous payment options
Global brand, distribution network and expertise


53
Payments Growth Strategy
Payments Growth Strategy
1) Expanding Our Product Offerings
Premium delivery for
immediate payments
Payment posting in real time
New revenue stream


54
Payments Growth Strategy
Payments Growth Strategy
1) Expanding Our Product Offerings
Google
Payments to AdSense
publishers
in 10 countries
Additional countries and offerings
Global Business Payments
Payment options for small business


55
Payments Growth Strategy
Payments Growth Strategy
1) Expanding Our Product Offerings
Vigo
Cross-sell opportunity by
making bill payment service
available to Vigo customers
Will also be available in
competitive locations


56
Payments Growth Strategy
Payments Growth Strategy
2) Active Global Expansion
Global reach
Agent network
Operating platform
We have a competitive edge


57
Payments Growth Strategy
Payments Growth Strategy
2) Active Global Expansion
Pago Fácil
Largest processor of public services
cash payments in Argentina
Connects 1,800 billers to more than
8 million users per month
More than 5,000 locations
Bill payment revenue is 1.5 times C2C


58
Payments Growth Strategy
Payments Growth Strategy
2)
Active Global Expansion
Brand, network, infrastructure and experience
Peru in third quarter
Panama to follow
Brazil opportunity
Pursuing opportunities in Europe, South Asia
and Asia Pacific 


59
Summary
Summary
Payments Growth Plan is Ambitious and Realistic
Leverage our unique capabilities
Expand globally
Evolve our products
Expand and globalize C2B
payments business


60
Gail Galuppo
Executive Vice President &
Chief Marketing Officer


61
Our Brand is Our Most
Powerful Asset
Our Brand is Our Most
Powerful Asset
A trusted brand for more than 150 years
People around
the world have an
emotional connection to the brand


62
Our Brand
Our Brand
Affinity
Trust
Knowledge


63
Our Brand
Our Brand
Western Union is a financial lifeline…


64
Our Brand
Our Brand
Top-of-mind awareness exceeds 80% in
many markets
Emotional commitment builds loyalty
Customer loyalty drives long-term growth


65
Our Rich Data is
a Competitive Advantage
Our Rich Data is
a Competitive Advantage
Gold
Card
and
Loyalty
Programs
Customers save time and money
Efficient customer service
Customer satisfaction
Valuable database


66
New Brand Campaign
New Brand Campaign
Coming Q4 2008


67
Mobile Money Transfer
Addresses Customer Needs
Mobile Money Transfer
Addresses Customer Needs
The mobile phone is the ideal device
to move cash quickly…
3.3 billion people have cell phones*
New channel, new customers
*Source: Wireless Intelligence


68
Unprecedented Access
Through Partnerships
Unprecedented Access
Through Partnerships
Moving currency around the
world through mobile devices


69
Summary
Summary
Strong brand
Loyal customers
Innovation pipeline


70
Scott Scheirman
Executive Vice President
& Chief Financial Officer


71
Long-Term Financial Drivers
Long-Term Financial Drivers
Strong revenue growth performance
Solid margins today and opportunities to expand
Large cash balances, solid credit ratings,
ample liquidity
Superior cash flow for growth and shareholder return
Creating long-term
shareholder value


72
$2.7
Strong Revenue Growth Performance
Strong Revenue Growth Performance
Huge market
opportunity
Proven strategies
Powerful brand
Unmatched distribution
network
Positioned well
for global growth
2002
2007
12%
CAGR
In Billions
$4.9


73
Operating Income Margin Challenges
Operating Income Margin Challenges
Business mix shift 
C2C geographic shift
C2B product shift
Acquisitions
Public company expenses
Implemented initiatives
to expand margins


74
Operating Income
Margin Expansion Initiatives
Operating Income
Margin Expansion Initiatives
Leverage global scale
Reduce distribution costs
Reduce operating expenses
Optimize global investments
Long-term objective:
margin expansion
2009 up to 50 basis points
expansion


75
Leverage Global Scale
Leverage Global Scale
Global infrastructure established
Invested ahead of growth
Scale we can leverage
Generating margin expansion
Leveraging Vigo worldwide
International expansion
Expand product offerings
Global scale provides margin
expansion opportunities


76
Reduce Distribution Costs
Reduce Distribution Costs
Leverage brand to reduce distribution costs
Sign new agents at more favorable commission rates
Minimize impact of C2C
geographic mix shift


77
Reduce Operating Expenses
Reduce Operating Expenses
Expense reduction programs in place
Approximately $35 million in annual savings
Continue expense reduction programs
Long-term operating structure and expense objectives
Continue programs to
reduce operating
expenses


78
Optimize Global Investments
Optimize Global Investments
Prioritized with a global perspective
Disciplined approach in investment decisions
Fund growth and drive innovation
Maximize return
on investments


79
Reported View
65%
11%
15%
2%
7%
Globally Diversified Business
Globally Diversified Business
Percent of 2007 Revenue
International
Mexico
C2B
Other
Domestic
Regional View
6%
2%
15%
40%
37%
Americas
Asia Pacific
C2B
Other
Europe, Middle East,
Africa & South Asia


80
Consumer-to-Consumer
Consumer-to-Consumer
Strong revenue
growth driven by
international business
Margin impacted
by business mix,
Vigo and public
company expenses
Objective
is to expand
margins annually
$4,093
$2,075
2002
2007
15%
CAGR
Revenue
in Millions
26%
27%
2002
2007
Operating
Income Margin


81
Americas
Americas
Challenging
immigration and
economic environment
Vigo acquisition
drove revenue growth
at lower margins
Objective is to
improve revenue and
margin trends
$1,792
$1,273
2002
2007
7%
CAGR
28%
33%
2002
2007
Revenue
in Millions
Operating
Income Margin


82
Europe, Middle East, Africa, South Asia
Europe, Middle East, Africa, South Asia
Strong revenue growth
driven by distribution
and corridor expansion
Leveraging scale
and brand
Objective is to
expand margins
$750
2002
2007
22%
CAGR
26%
19%
2002
2007
Revenue
in Millions
Operating
Income Margin
$1,986


83
Asia Pacific
Asia Pacific
Strong revenue growth
driven by network and
corridor expansion
Invest ahead of growth
in brand and operations
Leveraging scale
and brand
Objective is to replicate
EMEA / SA margin
expansion
$315
$53
2002
2007
43%
CAGR
20%
1%
2002
2007
Revenue
in Millions
Operating
Income Margin


84
Regional View Key Takeaways
Regional View Key Takeaways
Geographically balanced business
Improving international margins
Investing ahead of growth
Margin expands as business scales


85
Financial Strength
Financial Strength
Cash $1.9 billion as of March 31
“A -”
credit rating
Excellent liquidity
$1.5 billion credit line
Modest working capital needs
Disciplined risk management
Significant financial
strength and flexibility


86
Invest for growth and return
cash to shareholders
Superior Cash Flow
Superior Cash Flow
Strong and
consistent cash flows
Investment flexibility
$1.2
$0.6
$1.1
2002
2007
In Billions
2008 E
13%
CAGR
Cash Flow from Operations


87
Tax Rate Reduction
Tax Rate Reduction
International tax rates
are significantly below
the U.S. rate of 38%
More international
profit means lower
overall tax rate
Expected lower tax rate =
real cash benefit
29%
34%
30%
2003
2007
2008 E
Effective Tax Rate


88
Cash Priorities
Cash Priorities
Invest in business
Expected 2008 Cap Ex less than $200 million
Acquire companies
Use cash flows and cash on balance sheet
Return value to shareholders
Stock buyback
Dividends
Fund growth + return value
to shareholders


89
Return Value to Shareholders
Return Value to Shareholders
$1.3 billion
repurchased since
becoming public
Board authorized
additional $1 billion
stock buyback
$1.7 billion available
for stock buyback
Objective in 2008 and 2009:
return > 100% of net income to shareholders
2007
2008 E
2009 E
88%
> 100%
> 100%
Stock Buyback and Cash Dividends
as a Percent of Net Income


90
2008 Financial Guidance
2008 Financial Guidance
Revenue growth 9% to 11%
Non-GAAP EPS $1.25 to $1.29
Excluding $0.07 of restructuring expenses
and including $0.01 in cost savings
GAAP EPS: $1.18 to $1.22
Includes $80 million in restructuring expenses
Likely to be closer to the higher
end of guidance
See appendix for a reconciliation of non-GAAP to GAAP measures.


91
Summary
Summary
Robust revenue growth performance
Financial strength
Superior cash flow
Commitment to expand margin
Creating long-term
shareholder value


92
2008 Investor’s Meeting
June 20, 2008


93
Right Company, Right Time
Right Company, Right Time
Execution of our growth strategy will drive
long-term results
Continue our leadership position and drive financial
objectives
Long-term financial objectives
Revenue growth of 10% to 12%
EPS growth of 15% to 18%


94
Leading the Global Money
Transfer Marketplace
Leading the Global Money
Transfer Marketplace
345,000 agent locations
Well-known brand
Globally diverse revenue stream
Scalable infrastructure
Industry-leading compliance capabilities
Solid financial position
Long-term EPS growth
objective: 15%-18%


95
Appendix
June 20, 2008


96
The financial information for the periods presented prior to September 29, 2006
are presented on a combined basis and represent those entities that
were ultimately transferred to The Western Union Company ("Western Union")
as part of its spin-off from First Data Corporation ("First Data") and does
not reflect what our consolidated financial position, results of
operations
or cash flows would have been as a stand-alone company during the periods
presented. These historical statements of income prior to September 29,
2006 include expense allocations for certain corporate functions
historically provided to Western Union by First Data, including treasury,
tax, accounting and reporting, mergers and acquisitions, risk management,
legal, internal audit, procurement, human resources, investor relations and
information technology. If possible, these allocations were made
on a
specific identification basis. Otherwise, the expenses related to services
provided to Western Union by First Data were allocated to Western Union
based on the relative percentages, as compared to First Data’s other
businesses, of headcount or other appropriate methods depending on the
nature of each item of cost to be allocated. The costs historically
allocated to us by First Data for these services it has provided
us were
lower than the costs we incurred to obtain these services following the spin-off.
Presentation
Presentation


97
Reconciliation of Non-GAAP
Measures
Reconciliation of Non-GAAP
Measures
Western
Union's
management
has
presented
2008
earnings
per
share
guidance,
excluding restructuring and related expenses.  Western Union's management believes
this non-GAAP measure provides 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 it provides consistency and comparability to prior periods.
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 the non-GAAP measure to the most directly comparable GAAP
financial measure is included on the following slide:


98
Reconciliation of Non-GAAP
Measures (continued)
Reconciliation of Non-GAAP
Measures (continued)
(a) Projected 2008 restructuring and related expenses of $79 million relate to severance, outplacement
and other employee related benefits; facility closure and migration of our IT infrastructure; other expenses
related to relocation of various operations to existing Company facilities and third party providers, including
hiring,
training,
relocation,
travel,
and
professional
fees;
and
increased
security
costs
at
the
facilities
being
closed.  Also, included in the facility closure expenses are non-cash expenses related to fixed asset and
leasehold improvement write-offs and acceleration of depreciation and amortization.  For purposes of
calculating
the
"Adjusted
2008
EPS
guidance,
excluding
estimated
restructuring
and
related
expenses,"
the EPS impact of $0.07 is net of an estimated income tax benefit of $30 million.
$  1.29
$  1.25
Adjusted 2008 EPS Guidance, excluding estimated
restructuring and related expenses
0.07
0.07
Estimated restructuring and related expenses,
net of income tax benefit (a)
Adjustment:
$  1.22
$  1.18
2008 EPS Guidance GAAP basis
Range
EPS Guidance


99
Reported View
Regional View
6%
2%
15%
40%
37%
65%
11%
15%
2%
7%
Globally Diversified Business
Globally Diversified Business
Percent of 2007 Revenue
International
(2002: 49%)
Mexico
(2002: 6%)
C2B
(2002: 20%)
Other
(2002: 5%)
Domestic
(2002: 20%)
Americas
(2002: 46%)
Asia Pacific
(2002: 2%)
C2B
(2002: 20%)
Other
(2002: 5%)
Europe, Middle East,
Africa & South Asia
(2002: 27%)