Discover® Global Network – Delivering Value

Sara Villanueva- Alcantara Global Acceptance EMEA Regional Manager

23rd May 2018

Who We Are

Value We Bring to Merchants

Our Cardholders

e-commerce / Online Spend

Merchant Marketing Support

Summary & Next Steps

A Leading Direct Bank and Payments Partner

• $67 billion in card receivables • Leading cash rewards program

U.S. Card Issuance

• $32 billion in volume2 • $39 billion in consumer deposits • $147 billion in volume1 • $157 billion in volume • 110+ licensees • $16 billion in personal loans and • 10+ network alliances • 4,300+ Issuers Lending and private student loans • 190 countries/territories • 2 million ATMs in 138 Deposits • Cashback checking countries • Home equity installment loans

Balances as of December 31, 2017; pre-tax profit and volume based on the trailing four quarters ending 4Q17; direct-to-consumer deposits includes affinity deposits 1Volume is comprised of Proprietary Network Volume and Network Partners 2Volume is derived from data provided by licensees for Diners Club branded cards issued outside of North America and is subject to subsequent revision or amendment Confidential and Proprietary | ©2018 DFS Services LLC 3 Connect to a Powerful Network

CARDHOLDERS COUNTRIES / 105M+ AROUND THE GLOBE1 190 TERRITORIES

2005 2006 2008 2009 2010 2012 2013 2014 2015 2016 2017

China’s Japan’s Canada South Korea’s India’s Nigeria’s Diners Brazil’s largest Diners Interbank largest network leading issuer largest network largest network largest network Club® China card brand Club Turkey Card Center and network of Turkey

One of the United Kingdom Serbia’s Puerto Rico’s Middle East Diners Club Diners Diners leading ATM / largest network largest network largest network Bangladesh Club Japan Club Philippines debit networks in U.S.

Diners Club Vietnam’s Diners Club Russia largest network Switzerland (Russian Standard Bank)

Diners Diners Club India Club Greece

Diners Club Argentina 1 RBR, August 2017 – Global Cards Data and Forecasts to 2022 and Discover Global Network participant reporting

Global Diners Club International® • Issued in 55+ counties : China, Japan, Italy, Australia, and many more

Turkey United States South Korea Discover® Card Troy Global Card • # 1 for brand • First and only BC Global Card 2 loyalty domestic • South Korea’s card scheme Largest Network Brazil India Elo Global Card RuPay* Global Card • Brazil’s • India’s largest largest network network

1 DFS Internal Reporting 3 According to the 2017 Brand Keys Customer Loyalty Engagement Index Report * RuPay: implementing ProtectBuy with its issuing banks. We anticipate the implementation process to be completed during the second half of 2018.

Strong Global Growth

Diners Club International® Discover® Card Issued in 55 countries 6th largest Issuer in the U.S. 42%+

ANNUAL INCREASE IN Alliance Partner Cards TRANSACTIONS2

12%+ BC Global Card RuPay Global Card Elo Global Card Troy Global Card INCREASE IN UNIQUE South Korea’s largest India’s largest Brazil’s largest Turkey’s largest CARDHOLDERS SPENDING3 network network network network

1 1 RBR, August 2017 – Global Cards Data and Forecasts to 2022 and Discover Global Network participant reporting 2 Internal DFS: Growth in DGN transactions in 2017 vs. 2016 3 Unique means cardholders spending for first time; YOY 2016 to 2017 ©2018 DFS Services LLC 6 Tap Into Cardholders Around The World

North America USA

Asia Pacific EMEA Australia New Zealand Armenia Kuwait Bangladesh Philippines Austria Macedonia China Singapore Bosnia / Norway 55+ India* Sri Lanka Herzegovina Poland ISSUING COUNTRIES Japan Vietnam Bulgaria Qatar Croatia Russia Korea* Czech Republic Slovak Republic Denmark Slovenia Egypt South Africa Finland Spain Germany Sweden 190 Greece Switzerland Latin America COUNTRIES / TERRITORIES Ireland Turkey Argentina Honduras Israel U.A.E. Brazil* Nicaragua Italy United Kingdom Colombia Peru Kazakhstan Ecuador Uruguay El Salvador Venezuela 10+ NEW ISSUERS IN THE LAST FIVE YEARS * N2N and DCI Issuing Country

Alliance Partners issue cards within Discover® Global Network (DGN) BINs

Provides Alliance Partners the ability to spend internationally at DGN enabled merchants

Cardholders are educated to look for Diners Club® / Discover acceptance marks

Spend from New Alliance Partners joining the network can be captured without any required change by existing accepting merchants

https://www.youtube.com/watch?v=LJ_qq5A7PjA or Search: Discover Global Network Rakuten Capture Online Spend From Around the World

Diners Club International® Discover® Card from USA

Rich card features 9 out of every 10 cross-border transactions are on EMEA websites1

Cash back program Premium or High or No Corporate – Spend Limits mandated to use their card No foreign transaction fees

BC Global Card from South Korea Elo Global Card from Brazil

83% of cross-border 52% of cross-border transactions are online2 transactions are online3

Significant increase in Exponential growth spend and volume in in transactions on key categories* EMEA websites4

No foreign transaction fees

1 Internal DFS Data, 2017 2 BC Card Sources 3 Internal DFS Data 12 month 2016–2017 4 Internal DFS Data comparing YOY data 2017 vs 2016 * Internal DFS Data comparing 206 vs 2017 in certain T&E categories ©2018 DFS Services LLC 10 DGN® eCommerce Growth Into EMEA

North America +55% in Transactions APAC +59% in Transactions

Top Issuing Countries Spending in EMEA (eCommerce Volume Growth into EMEA 2016-2017) Latin America +88% in Transactions Israel +85% USA +42%

Spain +60% Japan +41%

Italy +59% South Korea* +36%

Growth: Internal DFS data comparing YOY data from 2017 Vs. 2016( APAC includes BC card spend, LATAM includes ELO spend) *BC Card

DGN® Cardholders spent more on EMEA websites in the past year

Hotels Travel Agencies Retail Ground Transport

+23% Volume +22% Volume +73% Volume +95% Volume

Internal DFS data based on sales volume from 2016 to 2017; ATV based on 2017 data

Cardholders Look for Acceptance Marks

Case Study of Merchants Issuers are Promoting with in store signage Signage Awareness • Merchants saw significant growth in number of transactions and activation when signage was placed in store • Cardholders are encouraged to look for signage at merchant locations

Sample Statement Insert Spend Activation Rate 14.00% 12.00% Signage In Store and Online 10.00% 12% 8.00% 6.00% 4.00% 2.00% 3.3% 0.00% Clean Window Policy Signage Placed Visit DiscoverGlobalSignage.com to order

1The on-line survey of 1,814 Discover Cardholders with documented travel in 2015 was commissioned by DFS Services LLC and conducted in February and March 2016 by C + R Research, an independent marketing research firm. The maximum margin of sampling error was 3 percentage points with a 95 percent level of confidence. The results were based on consumers’ self-reported experiences during 2015. ©2018 DFS Services LLC 13 Key Merchants are Promoted Directly to Our Cardholders

Offers Platforms Social Media (Web & Mobile)

Network Channels

Recently Enabled Rewards Programs Magazines Social Media Merchant Communications

Issuer Channels

Discover® Global Network (DGN) has simple transparent fees*

• DGN is an EU Regulated scheme • Competitive pricing across domestic and Intra-EEA cards • Pricing advantage with Inter-regional cards

DGN does not have fees like:

• Acquirer Cross-Border Fee • Market Fund • Acquirer Authorization Fee • International Acquiring • Acquirer Clearing and • eCommerce Settlement Fee Development Fee • License Fees • Reversal Fee

Incremental Volume Reach New Customers Competitive Pricing

• 105M+ consumer and • Multiple card brands in • Consumer competitive corporate global cardholders1 one network pricing domestically and • 57% increase in CNP • New incremental volume intra Europe transactions YOY2 from domestic schemes • Corporate interchange • Acquiring Partners can settle • Dedicated sales and competitive with industry in 31 currencies marketing teams to support • Simple, modest fee structure; your growth no DCC fees • One acquiring agreement

1 RBR, August 2017 – Global Cards Data and Forecasts to 2022 and Discover Global Network participant reporting 2 2016 v 2017 data

Agreement Installation Acceptance

Sign an agreement with our mutual The application will be downloaded Place Signage partner EMSPay and tested Train staff to look for Diners /Discover logo on the back of cards

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