Breaking Boundaries: A closer look into Puerto Rican economics

Miguel Vizcarrondo Executive Vice-President Payments Agenda

>Who we are? >History >What we do? >Latam growth- breaking boundaries outside Puerto Rico >Innovation

Leading full-service transaction processing business in Latin America, focused on simplifying commerce for merchants, financial institutions, government agencies, and consumers. About us

• Over 25 years of experience • > 1,900 employees (> 1,300 based in Puerto Rico) • First and only Puerto Rican technology company to list on the NYSE • Strategic presence in 18 countries in Latin America • Contracted and audited directly by the FED • A key partner of the Puerto Rican government

Key facts

• #10 largest merchant acquirer in Latin America* • Own and operate  the biggest Debit Network in the Caribbean • Over 180 Financial Institutions as clients • Over 2.1 billion transactions per year • Full services and end to end solutions across the entire transaction value chain

Establecidos desde

*Nilson report 2015. Our History*

2004 2005-06 2007-08 2010-11 2012-14 2015-16

• Evertec created • Began operations • Evertec begins to • Apollo acquired a • Launched several • Increased Latam as subsidiary of in El Salvador service 100% of the 51% interest in new products focus Banco Popular EBT subsidy including • Acquired ScanData Evertec from Banco • Entered into a payments for the Popular EVERPay, cloud- • Consolidates & TII Smart Federal Government based core merchant acquiring processing and Solutions • Evertec began banking, ATH alliance with technology • Established local transition to a Móvil (P2P) FirstBank functions of • ATH® Network Panama office signed agreement separate, • Acquired 65% of Banco Popular standalone entity • IPO – listed on de Puerto Rico with NYCE for ATH • Acquired SENSE in NYSE under the Processa, a payment and GM Group acceptance across Puerto Rico ticker symbol processor in the U.S. EVTC Colombia • Expanded into Guatemala, Aruba and Curacao

*Since spin-off from Banco Popular What we do

solutions for solutions for solutions for financial merchants business institutions

Products & Services Products & Services Full suite of merchant • Cash and document • Red ATH® acquiring solutions that banking processing • Card Issuing and enable our merchant • Networks infrastructure Acquiring Processing customers to accept all forms • IT consulting services • Electronic Payment of electronic payments – • Operational process Processing credit, debit, prepaid, EBT, outsourcing • ATM & POS Processing cardless and mobile. Latam growth strategy – How are we doing it?

U.S.

Bermuda Grand Mexico Cayman Dominican Island RepublicPuerto Rico British Virgin Islands • Maximizing our competitive advantages Belize Haiti Honduras U.S. Virgin Islands Guatemala Nicaragua First hand knowledge of the markets El Salvador Curacao Costa Rica Venezuela Panama • Diversified business model across the transaction Colombia processing value chain

• Language advantage Peru • Looking forward… Further penetration and increased share in our markets Strategic expansion into new geographies Argentina Chile  Argentina Current  Peru presence  Chile Further penetration Regional focus

• Local offices in various countries Puerto Rico, Costa Rica, Dominican Republic, Guatemala, México, Panamá and Colombia Increased productivity and competitiveness as a result of the regional knowledge generation and network of production

• Centers of excellence: Chargebacks from Dominican Republic Call center from Costa Rica Programmers from Venezuela Work from home

A track record of innovation

EVERPay mPOS, is a mobile payment solution that Web based payment processing allows merchants the freedom to process credit card and application with interactive PIN ACH payments anywhere their business takes them. pad.

Reader GPS Electronic Receipts by connection to signature email Geolocation cellphone or tablet Banco Popular

Easy deposit mobile Easy deposit ATM App for Apple Watch

• Deposit 24/7 from anywhere • Deposit checks or cash • Second bank worldwide and only bank in through an ATM machine. PR with an app for Apple Watch. A full self-service payment acceptance device which processes credit and debit cards, ACH and cash payments. Our configurable touch-screen user interface device, provides both, centralized and remote management and monitoring tools. EVERPay Collect® lets you create and send payment requests from an application installed in your phone or through a website. You can send the request by email or text message and when your customer receives the message, he will be redirected to EVERPay® Checkout where he will be able to complete the payment from a mobile device or computer using a debit card with PIN, credit card or ACH. Card control platform

Allows the cardholder to activate or deactivate their cards from a mobile app or through a website.

The cardholder can configure: • Authorized payment channels to use card: POS, ATM, online and phone • Select and authorize countries • Recurring payments management • Set limits by frequency or stores ATH Móvil is the first service that allows you to send and receive money person to person from your cellphone or computer, and between accounts from different banks or credit unions.

New security features Touch ID available • Email or text notifications when • Facilitates faster and more a change is done in the user secure access profile • Available exclusively on: • Controls to limit which merchants use the application . iPhone 5S as a payment method . iPhone 6 • 0 fraud incidence since product . iPhone 6 Plus went live ATH Móvil Transactions

48 700k 16M $1.1B 1.6M Banks participating Registrations Completed transfers Money transferred App downloads (BPPR + FB + 45 CUs)

*As of September 31, 2016