2/19/2013 Ryan Lumb Rob Karpinski

2/19/2013Ryan Lumb

Rob Karpinski

Dividend Growth

$0.00

$0.05

$0.10

$0.15

$0.20

$0.25

$0.30

$0.35

Dividend

Dividend Growth

0.00%

1.00%

2.00%

3.00%

4.00%

5.00%

6.00%

7.00%

8.00%

9.00%

Dividend Yield

Share Buyback

• $750 Million share buyback authorization• If fully employed, FY 2012 EPS of

$1.75 would have essentially equaled $1.98• Given the same multiple, this

would equate to a $16.75 share price• 17% non-performance related

upside potential

Insider Buying

Network Affect

“The classic example is the telephone. The more people own telephones, the more valuable the telephone is to each owner.”

Market Dominance“For every McDonald's restaurant, there are more than 15 Western Union vendors. Additionally, Western Union processes about four times the transactions of its closest competitor”

- Brendan Mathews

Brand Recognition

Valuation

Valuation

Strategy

• Market Dominance Strategy

• Monitor Points• Significant Loss in Market Share• Margins diminish greatly (Ex. 28% under 10%)• Any Decrease to Dividend