Business Wire | Feb 10, 2021 04:05PM EST

Western Union Reports Fourth Quarter and Full Year Results

Feb. 10, 2021

DENVER--(BUSINESS WIRE)--Feb. 10, 2021--The Western Union Company (NYSE: WU), a global leader in cross-border, cross-currency money movement and payments, today reported fourth quarter and full year financial results for 2020 and provided a financial outlook for 2021.

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(Graphic: Business Wire)

The Company's fourth quarter revenue of $1.3 billion declined 3% compared to the prior year period, or 1% on a constant currency basis that includes a 1% benefit from inflation in Argentina. The decline in revenue reflected the ongoing macro-economic impact from COVID-19, partially offset by strength in digital money transfer which grew 36% to a new quarterly high of $240 million.

GAAP earnings per share in the fourth quarter was $0.43 compared to $0.32 in the prior year period. Adjusted earnings per share was $0.45 compared to $0.38 in the prior year period, with declines in revenue more than offset by a lower effective tax rate, productivity and cost savings, and lower share count.

The Company increased its quarterly dividend by 4% to $0.235 per common share, payable March 31, 2021 to shareholders of record at the close of business on March 17, 2021.

President and CEO Hikmet Ersek said, "2020 was an unprecedented year for the global community and Western Union, and I am proud of how we responded to a range of COVID-19 challenges and ensured our services were available for customers to provide critical economic support to loved ones and communities around the world. We applaud the heroic efforts of our customers, many of whom have worked on the front lines in essential services of host communities during this crisis, while selflessly contributing to improved quality of life in home nations."

Ersek added, "The strong underlying fundamentals of our business really stood out this year, as we quickly began to rebound from an early, historic economic shock, finished with solid fourth quarter momentum, and still generated strong full year margins and cash flow. Despite the disruption from the pandemic, we remained highly focused on our growth strategy, driving exceptional results in our digital business and building the foundation for our future. As we begin 2021, uncertainty remains elevated but we are optimistic that business will continue to improve gradually, with expectations that our digital revenues will reach approximately $1 billion in 2021. In addition, we have a compelling strategic agenda that should position us to expand our offerings and markets to drive profitable, long-term growth that we believe will create value for shareholders."

CFO Raj Agrawal stated, "We delivered solid results again in the fourth quarter, which contributed to full year 2020 results that met or exceeded the financial outlook we reinstituted with third quarter results in October. I am pleased to say that the resilience of our business, coupled with prudent management of costs and capital, enabled us to achieve the 21% adjusted margin we initially targeted for 2020, generate $878 million of operating cash flow, return $587 million of cash to shareholders, and continue to invest to drive our strategy forward. In summary, we had very strong financial performance despite a historic economic disruption. Assuming no further macro-economic setbacks, we expect the business will continue to improve in 2021 and are issuing a full year financial outlook that includes mid-single digit constant currency revenue growth and EPS in a range of $2.00 to $2.10."

Q4 Business Highlights

* Consumer-to-Consumer (C2C) transactions increased 6% in the quarter, while revenues were flat on both a reported and constant currency basis. C2C revenues represented 88% of total Company revenue in the quarter. Within the C2C segment, cross-border money transfer revenues grew 2% and were offset by declines in domestic money transfers. Transaction growth was led by Europe and CIS, U.S. outbound, and the Middle East, partially offset by declines in U.S. domestic money transfer and Latin America and the Caribbean.

* Digital money transfer revenues increased 36% on a reported basis in the quarter, or 35% constant currency, and represented 21% and 32% of total C2C revenues and transactions, respectively. Digital money transfer reached new quarterly highs for transactions, principal, and revenues in the current year period. Westernunion.com revenue grew 27% on a reported basis and 26% constant currency, including cross-border revenue growth of 38%.

* Westernunion.com average monthly active customers for the fourth quarter increased 49% year-over-year. Westernunion.com was the most downloaded mobile app among peer money transfer companies during the fourth quarter, according to data provided by mobile app marketing firm Sensor Tower1. Westernunion.com service is available in over 75 countries and territories. Account payout is available in approximately 120 countries, with real-time capabilities to select bank accounts and digital wallets in approximately 100 countries, and retail payout in over 200 countries and territories.

* Western Union Business Solutions revenues declined 8% on a reported basis, or 11% constant currency, primarily due to the ongoing macro-economic impact of COVID-19 on travel and tourism, small and medium-sized enterprises, and education, along with decreased cross-border trade more broadly. Other revenues, which consists primarily of retail bill payments in the U.S. and Argentina, as well as money orders, declined 29% primarily due to the impact of COVID-19 and the depreciation of the Argentine peso. Business Solutions and Other represented 7% and 5%, respectively, of total Company revenue.

1Data obtained from Sensor Tower App Install Market Share Report

Additional Q4 Financial Highlights

* GAAP operating margin in the quarter was 17.9% compared to 17.3% in the prior year period, with the increase primarily driven by productivity and cost savings, the timing of marketing investments, partially offset by declines in revenue. Adjusted operating margin was 18.8% compared to 18.7% in the prior year period with the increase driven by the same factors noted above and adjusted for restructuring expenses and acquisition and divestiture costs.

* The GAAP effective tax rate in the quarter was 11.0% compared to 31.4% in the prior year period, and the adjusted tax rate was 11.6% in the quarter compared to 24.5% in the prior year period. The decreases in the Company's GAAP and adjusted effective tax rates compared to the prior year period were primarily due to higher prior period domestic pre-tax income associated with the sales of the Speedpay and Paymap businesses, prior period one-time settlements in certain geographies, and discrete tax benefits in the current period.

* The Company paid $93 million in dividends and did not repurchase shares during the fourth quarter. The Company has resumed share repurchases in the first quarter of 2021.

2020 Full Year Financial Highlights

* The Company's full year revenue of $4.8 billion declined 9% compared to the prior year, or 3% on an adjusted constant currency basis that includes a 1% benefit from inflation in Argentina. The decline in reported revenue was largely driven by the macro-economic impact of COVID-19, changes in foreign currency exchange rates, and the divestitures of Speedpay and Paymap, partially offset by strength in digital money transfer revenue which grew 38% compared to the prior year and surpassed $850 million. The decline in adjusted constant currency revenue was largely driven by the macro-economic impact of COVID-19, partially offset by strength in digital money transfer.

* GAAP operating margin was 20.0% compared to 17.6% in the prior year. The increase in GAAP operating margin was attributable to productivity and cost savings and lower restructuring expenses, partially offset by lower revenues. Adjusted operating margin was 20.8% compared to 20.1% in the prior year with margin expansion driven by the same factors noted above and adjusted for restructuring expenses and acquisition and divestiture costs.

* The GAAP effective tax rate for the year was 12.9% compared to 19.9% in the prior year, and the adjusted tax rate was 13.0% compared to 19.7% in 2019. The decreases in the GAAP and adjusted effective tax rates were primarily due to higher prior period domestic pre-tax income associated with the sales of the Speedpay and Paymap businesses, prior period one-time settlements in certain geographies, and discrete tax benefits in the current year.

* GAAP earnings per share was $1.79 compared to $2.46 in 2019. The decrease in earnings per share was primarily due to the gain on the sale of the Speedpay business in 2019 and declines in revenue in 2020, partially offset by productivity and cost savings, a lower effective tax rate, and lower restructuring expenses.

* Adjusted earnings per share was $1.87 compared to $1.73 in 2019. The increase in adjusted earnings per share was primarily due to productivity and cost savings, a lower effective tax rate, and fewer shares outstanding, partially offset by lower revenues.

* GAAP cash flow from operating activities for the year was $878 million. The Company returned $587 million to shareholders in dividends and share repurchases for the full year.

2021 Outlook

The Company expects the following financial outlook for full year 2021, which assumes no material worsening in macro-economic conditions or the COVID-19 pandemic. While we expect solid full-year results, we anticipate quarterly variability in year-over-year growth rates as we cycle through the impact that COVID-19 had on the business last year:



GAAP: mid-to-high single digit increaseRevenue Constant currency: mid-single digit increase, excluding any benefit related to Argentina inflation

Operating Approximately 21.5%Profit Margin

Effective Tax Mid-teens rangeRate

Earnings Per In a range of $2.00 - $2.10Share

Adjustment Items

Adjusted constant currency revenue metrics for 2020 exclude revenues for the Speedpay and Paymap businesses in the prior year period, each of which was divested in May 2019. Adjusted operating profit, tax rate, and earnings per share metrics for 2020 periods exclude restructuring expenses and acquisition and divestiture costs, net of related taxes, as applicable.

Adjusted constant currency revenue metrics for 2019 exclude revenues for the Speedpay and Paymap businesses. Adjusted operating profit metrics for 2019 periods exclude restructuring expenses and acquisition and divestiture costs. Adjusted tax rate and earnings per share metrics for 2019 periods exclude the impact of the net gain on the Speedpay and Paymap divestitures, restructuring expenses, and acquisition and divestiture costs. Restructuring expenses are not included in operating segment results.

Although the Company has previously incurred and can reasonably be expected to incur restructuring costs in the future, these expenses are specific to the implementation of the Global Strategy initiative and the Company has therefore provided adjusted financial results that exclude these expenses.

Additional Statistics

Additional key statistics for the quarter and historical trends can be found in the supplemental tables included with this press release.

All amounts included in the supplemental tables to this press release are rounded to the nearest tenth of a million, except as otherwise noted. As a result, the percentage changes and margins disclosed herein may not recalculate precisely using the rounded amounts provided.

Non-GAAP Measures

Western Union presents a number of non-GAAP financial measures because management believes that these metrics provide meaningful supplemental information in addition to the GAAP metrics and provide comparability and consistency to prior periods. Constant currency results assume foreign revenues are translated from foreign currencies to the U.S. dollar, net of the effect of foreign currency hedges, at rates consistent with those in the prior year.

Reconciliations of non-GAAP to comparable GAAP measures are available in the accompanying schedules and in the "Investor Relations" section of the Company's website at https://ir.westernunion.com.

Investor and Analyst Conference Call and Slide Presentation

The Company will host a conference call and webcast, including slides, at 4:30 p.m. Eastern Time today. To listen to the conference call via telephone, dial +1 (888) 317-6003 (U.S.) or +1 (412) 317-6061 (outside the U.S.) ten minutes prior to the start of the call. The pass code is 3185377.

The conference call and accompanying slides will be available via webcast at https://ir.westernunion.com. Registration for the event is required, so please register at least five minutes prior to the scheduled start time.

A webcast replay will be available at https://ir.westernunion.com.

Please note: All statements made by Western Union officers on this call are the property of Western Union and subject to copyright protection. Other than the replay, Western Union has not authorized, and disclaims responsibility for, any recording, replay or distribution of any transcription of this call.

Safe Harbor Compliance Statement for Forward-Looking Statements

This press release 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," "targets," "anticipates," "believes," "estimates," "guides," "provides guidance," "provides outlook," and other similar expressions or future or conditional verbs such as "may," "will," "should," "would," "could," and "might" are intended to identify such forward-looking statements. Readers of this press release of 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 in the Risk Factors section and throughout the Annual Report on Form 10-K for the year ended December 31, 2019. 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: changes in general economic conditions and economic conditions in the regions and industries in which we operate, including global economic downturns and trade disruptions, or significantly slower growth or declines in the money transfer, payment service, and other markets in which we operate, including downturns or declines related to interruptions in migration patterns or other events, such as public health emergencies, epidemics, or pandemics such as COVID-19, civil unrest, war, terrorism, or natural disasters, or non-performance by our banks, lenders, insurers, or other financial services providers; failure to compete effectively in the money transfer and payment service industry, including among other things, with respect to price, with global and niche or corridor money transfer providers, banks and other money transfer and payment service providers, including digital, mobile and internet-based services, card associations, and card-based payment providers, and with digital currencies and related protocols, and other innovations in technology and business models; political conditions and related actions, including trade restrictions and government sanctions, in the United States and abroad, which may adversely affect our business and economic conditions as a whole, including interruptions of United States or other government relations with countries in which we have or are implementing significant business relationships with agents, clients, or other partners; deterioration in customer confidence in our business, or in money transfer and payment service providers generally; failure to maintain our agent network and business relationships under terms consistent with or more advantageous to us than those currently in place; our ability to adopt new technology and develop and gain market acceptance of new and enhanced services in response to changing industry and consumer needs or trends; 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; any material breach of security, including cybersecurity, or safeguards of or interruptions in any of our systems or those of our vendors or other third parties; cessation of or defects in various services provided to us by third-party vendors; mergers, acquisitions, and the integration of acquired businesses and technologies into our Company, divestitures, and the failure to realize anticipated financial benefits from these transactions, and events requiring us to write down our goodwill; decisions to change our business mix; our ability to realize the anticipated benefits from restructuring-related initiatives, which may include decisions to downsize or to transition operating activities from one location to another, and to minimize any disruptions in our workforce that may result from those initiatives; failure to manage credit and fraud risks presented by our agents, clients, and consumers; changes in tax laws or their interpretation, any subsequent regulation, and potential related state income tax impacts, and unfavorable resolution of tax contingencies; adverse rating actions by credit rating agencies; our ability to protect our trademarks, patents, copyrights, and other intellectual property rights and to defend ourselves against potential intellectual property infringement claims; our ability to attract and retain qualified key employees and to manage our workforce successfully; material changes in the market value or liquidity of securities that we hold; restrictions imposed by our debt obligations; (ii) events related to our regulatory and litigation environment, such as: liabilities or loss of business resulting from a failure by us, our agents, or their subagents to comply with laws and regulations and regulatory or judicial interpretations thereof, including laws and regulations designed to protect consumers, or detect and prevent money laundering, terrorist financing, fraud, and other illicit activity; increased costs or loss of business due to regulatory initiatives and changes in laws, regulations and industry practices and standards, including changes in interpretations, in the United States and abroad, affecting us, our agents, or their subagents, or the banks with which we or our agents maintain bank accounts needed to provide our services, including related to anti-money laundering regulations, anti-fraud measures, our licensing arrangements, customer due diligence, agent and subagent due diligence, registration and monitoring requirements, consumer protection requirements, remittances, and immigration; liabilities, increased costs or loss of business and unanticipated developments resulting from governmental investigations and consent agreements with or enforcement actions by regulators; liabilities resulting from litigation, including class-action lawsuits and similar matters, and regulatory enforcement actions, including costs, expenses, settlements, and judgments; failure to comply with regulations and evolving industry standards regarding consumer privacy, data use, the transfer of personal data between jurisdictions and information security, including with respect to the General Data Protection Regulation in the European Union and the California Consumer Privacy Act; failure to comply with the Dodd-Frank Wall Street Reform and Consumer Protection Act, as well as regulations issued pursuant to it and the actions of the Consumer Financial Protection Bureau and similar legislation and regulations enacted by other governmental authorities in the United States and abroad related to consumer protection and derivative transactions; effects of unclaimed property laws or their interpretation or the enforcement thereof; failure to maintain sufficient amounts or types of regulatory capital or other restrictions on the use of our working capital to meet the changing requirements of our regulators worldwide; changes in accounting standards, rules and interpretations, or industry standards affecting our business; and (iii) other events such as: catastrophic events; and management's ability to identify and manage these and other risks.

About Western Union

The Western Union Company (NYSE: WU) is a global leader in cross-border, cross-currency money movement and payments. Western Union's platform provides seamless cross-border flows and its leading global financial network bridges more than 200 countries and territories and over 130 currencies. We connect businesses, financial institutions, governments, and consumers through one of the world's widest reaching networks, accessing billions of bank accounts, millions of digital wallets and cards, and over half a million-retail locations. Western Union connects the world to bring boundless possibilities within reach. For more information, visit www.westernunion.com.

WU-G

THE WESTERN UNION COMPANY

KEY STATISTICS

(Unaudited)



Notes* 4Q19 FY2019 1Q20 2Q20 3Q20 4Q20 FY2020

Consolidated Metrics

Consolidated revenues (7) % (5) % (11) % (17) % (4) % (3) % (9) %(GAAP) - YoY % changeConsolidated revenues(non-GAAP, constantcurrency adjusted and (a) 3 % 3 % (1) % (11) % (1) % (1) % (3) %excluding Speedpayand Paymap) - YoY %changeConsolidated 17.3 % 17.6 % 19.6 % 19.9 % 22.7 % 17.9 % 20.0 %operating margin(GAAP)Consolidatedoperating margin,excludingrestructuring-related (b) 18.7 % 20.1 % 20.5 % 20.4 % 23.5 % 18.8 % 20.8 %expenses andacquisition anddivestiture costs(non-GAAP)

EBITDA margin (c) 22.4 % 22.5 % 24.5 % 25.0 % 27.0 % 22.3 % 24.7 %(non-GAAP)

Consumer-to-Consumer (C2C) Segment MetricsRevenues (GAAP) - YoY 0 % (1) % (4) % (12) % (1) % 0 % (4) %% changeRevenues (non-GAAP,constant currency (e) 1 % 1 % (3) % (11) % 0 % 0 % (3) %adjusted) - YoY %change

Transactions (in 73.8 289.4 66.8 68.0 77.3 78.4 290.5 millions)Transactions - YoY % (1) % 1 % (3) % (8) % 6 % 6 % 0 %change

Total principal ($- $ 22.2 $ 87.7 $ 20.6 $ 21.9 $ 26.9 $ 26.7 $ 96.1 billions)Principal pertransaction, as 0 % (1) % 2 % 7 % 13 % 14 % 9 %reported - YoY %changePrincipal pertransaction (constant (f) 1 % 1 % 4 % 9 % 14 % 13 % 10 %currency adjusted) -YoY % change

Cross-borderprincipal, as 1 % 1 % 0 % 1 % 23 % 24 % 12 %reported - YoY %changeCross-borderprincipal (constant (g) 2 % 3 % 2 % 3 % 24 % 23 % 13 %currency adjusted) -YoY % change

Operating margin** 20.3 % 22.1 % 20.7 % 21.8 % 24.6 % 20.5 % 21.9 %



Digital moneytransfer revenues 25 % 20 % 21 % 48 % 45 % 36 % 38 %(GAAP) - YoY % change^(1)Digital moneytransfer foreign (j) 1 % 2 % 1 % 2 % 1 % (1) % 0 %currency translationimpactDigital money transferrevenues (non-GAAP, constant 26 % 22 % 22 % 50 % 46 % 35 % 38 %currency adjusted) - YoY %change ^(1)Digital money 36 % 26 % 42 % 96 % 96 % 83 % 81 %transfer transactions- YoY % change

westernunion.com 17 % 17 % 13 % 33 % 33 % 27 % 27 %revenues (GAAP) - YoY (ii)% changewesternunion.com 1 % 1 % 1 % 1 % (1) % (1) % 0 %foreign currency (j)translation impactwesternunion.comrevenues (non-GAAP, 18 % 18 % 14 % 34 % 32 % 26 % 27 %constant currency (ii)adjusted) - YoY %changewesternunion.com 13 % 16 % 15 % 50 % 53 % 56 % 44 %transactions - YoY % (ii)change

C2C Segment Regional MetricsNA region revenues (aa), 1 % 2 % (2) % (6) % 0 % (3) % (3) %(GAAP) - YoY % change (bb)NA region foreign 0 % 0 % 0 % 1 % 1 % 0 % 0 %currency translation (j)impactNA region revenues(non-GAAP, constant (aa), 1 % 2 % (2) % (5) % 1 % (3) % (3) %currency adjusted) - (bb)YoY % changeNA region (aa), (4) % (2) % (5) % (7) % 1 % (1) % (3) %transactions - YoY % (bb)change

EU & CIS region (aa), 1 % (2) % (5) % (10) % 3 % 3 % (2) %revenues (GAAP) - YoY (cc)% changeEU & CIS region 1 % 3 % 0 % 1 % (2) % (3) % (1) %foreign currency (j)translation impactEU & CIS regionrevenues (non-GAAP, (aa), 2 % 1 % (5) % (9) % 1 % 0 % (3) %constant currency (cc)adjusted) - YoY%changeEU & CIS region (aa), 5 % 5 % 1 % 4 % 24 % 23 % 13 %transactions - YoY % (cc)change

MEASA region revenues (aa), 0 % (1) % 3 % (13) % 2 % 1 % (2) %(GAAP) - YoY % change (dd)MEASA region foreign 0 % 1 % 0 % 1 % 0 % (1) % 0 %currency translation (j)impactMEASA region revenues(non-GAAP, constant (aa), 0 % 0 % 3 % (12) % 2 % 0 % (2) %currency adjusted) - (dd)YoY % changeMEASA region (aa), (1) % (1) % 1 % (1) % 15 % 12 % 7 %transactions - YoY % (dd)change

LACA region revenues (aa), (2) % 1 % (11) % (45) % (21) % (9) % (22) %(GAAP) - YoY % change (ee)LACA region foreign 8 % 10 % 8 % 10 % 13 % 11 % 11 %currency translation (j)impactLACA region revenues(non-GAAP, constant (aa), 6 % 11 % (3) % (35) % (8) % 2 % (11) %currency adjusted) - (ee)YoY % changeLACA region (aa), 4 % 8 % (5) % (41) % (21) % (13) % (20) %transactions - YoY % (ee)change

APAC region revenues (aa), (10) % (13) % (10) % (14) % 4 % 8 % (3) %(GAAP) - YoY % change (ff)APAC region foreign 0 % 1 % 1 % 1 % 1 % (2) % 0 %currency translation (j)impactAPAC region revenues(non-GAAP, constant (aa), (10) % (12) % (9) % (13) % 5 % 6 % (3) %currency adjusted) - (ff)YoY % changeAPAC region (aa), (7) % (7) % (14) % (18) % (6) % (3) % (10) %transactions - YoY % (ff)change

International (1) % (2) % (4) % (15) % (1) % 2 % (5) %revenues - YoY % (gg)changeInternational 2 % 3 % (2) % (8) % 10 % 11 % 3 %transactions - YoY % (gg)changeInternational 66 % 66 % 65 % 63 % 66 % 67 % 66 %revenues - % of C2C (gg)segment revenues

United States 1 % 1 % (3) % (7) % (1) % (4) % (4) %originated revenues - (hh)YoY % changeUnited Statesoriginated (hh) (4) % (2) % (5) % (8) % 0 % (2) % (4) %transactions - YoY %changeUnited Statesoriginated revenues - (hh) 34 % 34 % 35 % 37 % 34 % 33 % 34 %% of C2C segmentrevenues

% of C2C Revenue

NA region revenues (aa), 38 % 38 % 38 % 41 % 38 % 37 % 38 % (bb)EU & CIS region (aa), 32 % 32 % 31 % 32 % 33 % 33 % 33 %revenues (cc)MEASA region revenues (aa), 15 % 15 % 16 % 15 % 16 % 15 % 15 % (dd)LACA region revenues (aa), 9 % 9 % 9 % 6 % 7 % 8 % 8 % (ee)APAC region revenues (aa), 6 % 6 % 6 % 6 % 6 % 7 % 6 % (ff)

Digital money (aa) 16 % 14 % 16 % 22 % 21 % 21 % 20 %transfer revenues

Business Solutions Segment MetricsRevenues (GAAP) - YoY 0 % 0 % 3 % (17) % (11) % (8) % (8) %% changeRevenues (non-GAAP,constant currency (h) 1 % 4 % 5 % (15) % (13) % (11) % (8) %adjusted) - YoY %changeOperating margin** 11.3 % 12.0 % 14.1 % 1.6 % 10.5 % (0.2) % 6.9 %



Other (primarily billpayments businesses in Argentina and theUnited States andmoney orders)Revenues (GAAP) - YoY (52) % (34) % (59) % (56) % (33) % (29) % (48) %% changeOperating margin** 4.6 % 5.5 % 26.1 % 21.9 % 20.0 % 15.8 % 21.2 %



% of Total Company Revenue (GAAP)Consumer-to-Consumer 86 % 83 % 85 % 88 % 88 % 88 % 87 %segment revenuesBusiness Solutions 7 % 7 % 8 % 7 % 7 % 7 % 8 %segment revenuesOther revenues 7 % 10 % 7 % 5 % 5 % 5 % 5 %

(1)

Represents revenue from transactions conducted and funded through westernunion.com and transactions initiated on internet and mobile applications hosted by our third-party white label or co-branded digital partners.

*

See the "Notes to Key Statistics" section of the press release for the applicable Note references and the reconciliation of non-GAAP financial measures, unless already reconciled herein.

**

In the first quarter of 2020, we changed our expense allocation method so that our corporate data center and network engineering information technology expenses are allocated based on a percentage of relative revenue. In 2019, these costs had been allocated based in part on a percentage of relative transactions. We believe that an allocation method based fully on relative revenue presents a more representative view of segment profitability, as certain of our services, particularly some of our bill payment services and our money order services, have much lower revenues per transaction than our other services. Further, these technology expenses are becoming increasingly based on data storage utilized and less based on the number of transactions processed. For the three and twelve months ended December 31, 2019, this change would have decreased Consumer-to-Consumer and increased Other operating income by $11.8 million and $49.6 million, respectively. Business Solutions was not materially impacted by the change in the allocation method.

Represents revenue from transactions conducted and funded through(1) westernunion.com and transactions initiated on internet and mobile applications hosted by our third-party white label or co-branded digital partners.

See the "Notes to Key Statistics" section of the press release for the* applicable Note references and the reconciliation of non-GAAP financial measures, unless already reconciled herein.

In the first quarter of 2020, we changed our expense allocation method so that our corporate data center and network engineering information technology expenses are allocated based on a percentage of relative revenue. In 2019, these costs had been allocated based in part on a percentage of relative transactions. We believe that an allocation method based fully on relative revenue presents a more representative view of segment profitability, as certain of our services, particularly some of** our bill payment services and our money order services, have much lower revenues per transaction than our other services. Further, these technology expenses are becoming increasingly based on data storage utilized and less based on the number of transactions processed. For the three and twelve months ended December 31, 2019, this change would have decreased Consumer-to-Consumer and increased Other operating income by $11.8 million and $49.6 million, respectively. Business Solutions was not materially impacted by the change in the allocation method.

THE WESTERN UNION COMPANY

CONSOLIDATED STATEMENTS OF INCOME

(Unaudited)

(in millions, except per share amounts)

Three Months Ended

Twelve Months Ended

December 31,

December 31,

2020

2019

% Change

2020

2019

% Change

Revenues$1,271.8

$1,307.7

(3)

%

$4,835.0

$5,292.1

(9)

%

Expenses:Cost of services759.2

756.5

0

%

2,826.5

3,086.5

(8)

%

Selling, general, and administrative285.5

324.7

(12)

%

1,041.2

1,271.6

(18)

%

Total expenses (a)1,044.7

1,081.2

(3)

%

3,867.7

4,358.1

(11)

%

Operating income227.1

226.5

0

%

967.3

934.0

4

%

Other income/(expense):Gain on divestitures of businesses (b)-

-

-

524.6

(c)

Interest income0.3

2.1

(81)

%

3.2

6.3

(48)

%

Interest expense(28.1

)

(37.5

)

(25)

%

(118.5

)

(152.0

)

(22)

%

Other income/(expense), net(0.3

)

6.4

(c)

3.1

8.5

(64)

%

Total other income/(expense), net(28.1

)

(29.0

)

(3)

%

(112.2

)

387.4

(c)

Income before income taxes199.0

197.5

1

%

855.1

1,321.4

(35)

%

Provision for income taxes21.9

62.1

(65)

%

110.8

263.1

(58)

%

Net income$177.1

$135.4

31

%

$744.3

$1,058.3

(30)

%

Earnings per share:Basic$0.43

$0.32

34

%

$1.81

$2.47

(27)

%

Diluted$0.43

$0.32

34

%

$1.79

$2.46

(27)

%

Weighted-average shares outstanding:Basic411.7

419.5

412.3

427.6

Diluted414.5

424.7

415.2

430.9

THE WESTERN UNION COMPANY

CONSOLIDATED STATEMENTS OF INCOME

(Unaudited)

(in millions, except per share amounts)



Three Months Ended Twelve Months Ended

December 31, December 31,

2020 2019 % 2020 2019 % Change Change

Revenues $ 1,271.8 $ 1,307.7 (3) % $ 4,835.0 $ 5,292.1 (9) %

Expenses:

Cost of services 759.2 756.5 0 % 2,826.5 3,086.5 (8) %

Selling, 285.5 324.7 (12) % 1,041.2 1,271.6 (18) %general, andadministrativeTotal expenses ^ 1,044.7 1,081.2 (3) % 3,867.7 4,358.1 (11) %(a)Operating income 227.1 226.5 0 % 967.3 934.0 4 %

Other income/ (expense):Gain on - - - 524.6 (c)divestitures ofbusinesses ^(b)Interest income 0.3 2.1 (81) % 3.2 6.3 (48) %

Interest expense (28.1 ) (37.5 ) (25) % (118.5 ) (152.0 ) (22) %

Other income/ (0.3 ) 6.4 (c) 3.1 8.5 (64) %(expense), netTotal other (28.1 ) (29.0 ) (3) % (112.2 ) 387.4 (c)income/(expense), netIncome before 199.0 197.5 1 % 855.1 1,321.4 (35) %income taxesProvision for 21.9 62.1 (65) % 110.8 263.1 (58) %income taxesNet income $ 177.1 $ 135.4 31 % $ 744.3 $ 1,058.3 (30) %

Earnings per share:Basic $ 0.43 $ 0.32 34 % $ 1.81 $ 2.47 (27) %

Diluted $ 0.43 $ 0.32 34 % $ 1.79 $ 2.46 (27) %

Weighted-average sharesoutstanding:Basic 411.7 419.5 412.3 427.6

Diluted 414.5 424.7 415.2 430.9

(a)

For the three and twelve months ended December 31, 2020, we incurred $12.0 million and $36.8 million, respectively, of expenses related to our restructuring plan, the majority of which are related to severance, consulting fees, and other costs. For the three and twelve months ended December 31, 2020, $2.0 million and $4.5 million are included within Cost of services, respectively. For the three and twelve months ended December 31, 2020, $10.0 million and $32.3 million are included within Selling, general, and administrative, respectively. For the three and twelve months ended December 31, 2019, we incurred $16.6 million and $115.5 million, respectively, of expenses related to this plan. For the three and twelve months ended December 31, 2019, $5.9 million and $39.8 million, respectively, are included within Cost of services, and $10.7 million and $75.7 million, respectively, are included within Selling, general, and administrative.

(b)

On May 9, 2019, the Company completed the sale of its United States electronic bill payments business known as Speedpay to ACI Worldwide Corp. and ACW Worldwide, Inc. for approximately $750 million in cash, resulting in a gain of approximately $523 million on the sale for the twelve months ended December 31, 2019.

(c)

Calculation not meaningful.

For the three and twelve months ended December 31, 2020, we incurred $12.0 million and $36.8 million, respectively, of expenses related to our restructuring plan, the majority of which are related to severance, consulting fees, and other costs. For the three and twelve months ended December 31, 2020, $2.0 million and $4.5 million are included within Cost of services, respectively. For the three and twelve months ended December(a) 31, 2020, $10.0 million and $32.3 million are included within Selling, general, and administrative, respectively. For the three and twelve months ended December 31, 2019, we incurred $16.6 million and $115.5 million, respectively, of expenses related to this plan. For the three and twelve months ended December 31, 2019, $5.9 million and $39.8 million, respectively, are included within Cost of services, and $10.7 million and $75.7 million, respectively, are included within Selling, general, and administrative.

On May 9, 2019, the Company completed the sale of its United States electronic bill payments business known as Speedpay to ACI Worldwide Corp.(b) and ACW Worldwide, Inc. for approximately $750 million in cash, resulting in a gain of approximately $523 million on the sale for the twelve months ended December 31, 2019.

(c) Calculation not meaningful.

THE WESTERN UNION COMPANY

CONSOLIDATED BALANCE SHEETS

(Unaudited)

(in millions, except per share amounts)

December 31,

December 31,

2020

2019

AssetsCash and cash equivalents$1,428.2

$1,450.5

Settlement assets3,821.4

3,296.7

Property and equipment, net of accumulated depreciation of $659.9 and $616.5, respectively150.4

186.9

Goodwill2,566.6

2,566.6

Other intangible assets, net of accumulated amortization of $1,044.6 and $961.5, respectively505.0

494.9

Other assets1,024.7

762.9

Total assets$9,496.3

$8,758.5

Liabilities and stockholders' equity/(deficit)Liabilities:Accounts payable and accrued liabilities$500.9

$601.9

Settlement obligations3,821.4

3,296.7

Income taxes payable928.9

1,019.7

Deferred tax liability, net188.9

152.1

Borrowings3,067.2

3,229.3

Other liabilities802.4

498.3

Total liabilities9,309.7

8,798.0

Stockholders' equity/(deficit):Preferred stock, $1.00 par value; 10 shares authorized; no shares issued-

-

Common stock, $0.01 par value; 2,000 shares authorized; 411.2 shares and 418.0 shares issued and outstanding as of December 31, 2020 and December 31, 2019, respectively4.1

4.2

Capital surplus885.1

841.2

Accumulated deficit(543.1

)

(675.9

)

Accumulated other comprehensive loss(159.5

)

(209.0

)

Total stockholders' equity/(deficit)186.6

(39.5

)

Total liabilities and stockholders' equity/(deficit)$9,496.3

$8,758.5

THE WESTERN UNION COMPANY

CONSOLIDATED BALANCE SHEETS

(Unaudited)

(in millions, except per share amounts)



December December 31, 31,

2020 2019

AssetsCash and cash equivalents $ 1,428.2 $ 1,450.5

Settlement assets 3,821.4 3,296.7

Property and equipment, net of accumulated 150.4 186.9 depreciation of $659.9 and $616.5,respectivelyGoodwill 2,566.6 2,566.6

Other intangible assets, net of accumulated 505.0 494.9 amortization of $1,044.6 and $961.5,respectivelyOther assets 1,024.7 762.9

Total assets $ 9,496.3 $ 8,758.5

Liabilities and stockholders' equity/(deficit)Liabilities:Accounts payable and accrued liabilities $ 500.9 $ 601.9

Settlement obligations 3,821.4 3,296.7

Income taxes payable 928.9 1,019.7

Deferred tax liability, net 188.9 152.1

Borrowings 3,067.2 3,229.3

Other liabilities 802.4 498.3

Total liabilities 9,309.7 8,798.0

Stockholders' equity/(deficit):Preferred stock, $1.00 par value; 10 shares - - authorized; no shares issuedCommon stock, $0.01 par value; 2,000 sharesauthorized; 411.2 shares and 418.0 shares 4.1 4.2 issued and outstanding as of December 31,2020 and December 31, 2019, respectivelyCapital surplus 885.1 841.2

Accumulated deficit (543.1 ) (675.9 )

Accumulated other comprehensive loss (159.5 ) (209.0 )

Total stockholders' equity/(deficit) 186.6 (39.5 )

Total liabilities and stockholders' equity/ $ 9,496.3 $ 8,758.5 (deficit)THE WESTERN UNION COMPANY

CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited)

(in millions)

Year Ended

December 31,

2020

2019

Cash flows from operating activitiesNet income$744.3

$1,058.3

Adjustments to reconcile net income to net cash provided by operating activities:Depreciation61.3

79.6

Amortization164.3

178.1

Gain on divestitures of businesses, excluding transaction costs-

(532.1

)

Deferred income tax provision/(benefit)13.9

(24.5

)

Other non-cash items, net145.8

118.4

Increase/(decrease) in cash, excluding the effects of divestitures, resulting from changes in:Other assets(44.4

)

7.5

Accounts payable and accrued liabilities(96.6

)

94.3

Income taxes payable(94.4

)

(36.8

)

Other liabilities(16.7

)

(28.2

)

Net cash provided by operating activities877.5

914.6

Cash flows from investing activitiesPayments for capitalized contract costs(69.1

)

(46.6

)

Payments for internal use software(51.2

)

(33.0

)

Purchases of property and equipment(36.5

)

(48.1

)

Proceeds from the sale of former corporate headquarters and other property49.4

-

Proceeds from divestitures of businesses, net of cash divested-

711.7

Purchases of non-settlement related investments(4.9

)

(6.8

)

Proceeds from maturity of non-settlement related investments0.9

23.4

Purchases of held-to-maturity non-settlement related investments-

(1.3

)

Proceeds from held-to-maturity non-settlement related investments-

33.0

Other investing activities(2.0

)

-

Net cash (used in)/provided by investing activities(113.4

)

632.3

Cash flows from financing activitiesCash dividends and dividend equivalents paid(370.3

)

(340.8

)

Common stock repurchased(239.7

)

(552.6

)

Net (repayments of)/proceeds from commercial paper(165.0

)

120.0

Net proceeds from issuance of borrowings-

495.9

Principal payments on borrowings-

(824.9

)

Proceeds from exercise of options2.2

36.7

Other financing activities(0.7

)

(4.1

)

Net cash used in financing activities(773.5

)

(1,069.8

)

Net change in cash, cash equivalents, and restricted cash(9.4

)

477.1

Cash, cash equivalents, and restricted cash at beginning of period1,456.8

979.7

Cash, cash equivalents, and restricted cash at end of period (a)$1,447.4

$1,456.8

THE WESTERN UNION COMPANY

CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited)

(in millions)



Year Ended

December 31,

2020 2019

Cash flows from operating activities Net income $ 744.3 $ 1,058.3

Adjustments to reconcile net income to net cash provided by operating activities: Depreciation 61.3 79.6

Amortization 164.3 178.1

Gain on divestitures of businesses, - (532.1 ) excluding transaction costs Deferred income tax provision/(benefit) 13.9 (24.5 )

Other non-cash items, net 145.8 118.4

Increase/(decrease) in cash, excluding the effects of divestitures, resulting from changes in: Other assets (44.4 ) 7.5

Accounts payable and accrued liabilities (96.6 ) 94.3

Income taxes payable (94.4 ) (36.8 )

Other liabilities (16.7 ) (28.2 )

Net cash provided by operating activities 877.5 914.6

Cash flows from investing activities Payments for capitalized contract costs (69.1 ) (46.6 )

Payments for internal use software (51.2 ) (33.0 )

Purchases of property and equipment (36.5 ) (48.1 )

Proceeds from the sale of former corporate 49.4 - headquarters and other property Proceeds from divestitures of businesses, - 711.7 net of cash divested Purchases of non-settlement related (4.9 ) (6.8 ) investments Proceeds from maturity of non-settlement 0.9 23.4 related investments Purchases of held-to-maturity non-settlement - (1.3 ) related investments Proceeds from held-to-maturity - 33.0 non-settlement related investments Other investing activities (2.0 ) -

Net cash (used in)/provided by investing (113.4 ) 632.3 activities Cash flows from financing activities Cash dividends and dividend equivalents paid (370.3 ) (340.8 )

Common stock repurchased (239.7 ) (552.6 )

Net (repayments of)/proceeds from commercial (165.0 ) 120.0 paper Net proceeds from issuance of borrowings - 495.9

Principal payments on borrowings - (824.9 )

Proceeds from exercise of options 2.2 36.7

Other financing activities (0.7 ) (4.1 )

Net cash used in financing activities (773.5 ) (1,069.8 )

Net change in cash, cash equivalents, and (9.4 ) 477.1 restricted cash Cash, cash equivalents, and restricted cash 1,456.8 979.7 at beginning of period Cash, cash equivalents, and restricted cash $ 1,447.4 $ 1,456.8 at end of period ^(a)(a)

As of December 31, 2020 and 2019 the Company had $19.2 million and $6.3 million, respectively, of restricted cash.

(a) As of December 31, 2020 and 2019 the Company had $19.2 million and $6.3 million, respectively, of restricted cash.

THE WESTERN UNION COMPANY

SUMMARY SEGMENT DATA

(Unaudited)

(in millions)

Three Months Ended

Twelve Months Ended

December 31,

December 31,

2020

2019

% Change

2020

2019

% Change

Revenues:Consumer-to-Consumer$1,121.5

$1,125.0

0

%

$4,220.0

$4,407.8

(4)

%

Business Solutions89.2

97.0

(8)

%

356.1

388.8

(8)

%

Other (a) (b)61.1

85.7

(29)

%

258.9

495.5

(48)

%

Total consolidated revenues$1,271.8

$1,307.7

(3)

%

$4,835.0

$5,292.1

(9)

%

Segment operating income/(loss):Consumer-to-Consumer$229.6

$228.1

1

%

$924.7

$975.4

(5)

%

Business Solutions(0.2)

11.0

(e)

24.4

46.8

(48)

%

Other (a) (b)9.7

4.0

(e)

55.0

27.3

(e)

Total segment operating income239.1

243.1

(2)

%

1,004.1

1,049.5

(4)

%

Restructuring-related expenses (c)(12.0)

(16.6)

(28)

%

(36.8)

(115.5)

(68)

%

Total consolidated operating income$227.1

$226.5

0

%

$967.3

$934.0

4

%

Segment operating income/(loss) margin (d)Consumer-to-Consumer20.5

%

20.3

%

0.2

%

21.9

%

22.1

%

(0.2)

%

Business Solutions(0.2)

%

11.3

%

(11.5)

%

6.9

%

12.0

%

(5.1)

%

Other (a)15.8

%

4.6

%

11.2

%

21.2

%

5.5

%

15.7

%

THE WESTERN UNION COMPANY

SUMMARY SEGMENT DATA

(Unaudited)

(in millions)



Three Months Ended Twelve Months Ended

December 31, December 31,

2020 2019 % Change 2020 2019 % Change

Revenues:

Consumer-to-Consumer $ 1,121.5 $ 1,125.0 0 % $ 4,220.0 $ 4,407.8 (4) %

Business Solutions 89.2 97.0 (8) % 356.1 388.8 (8) %

Other ^(a) (b) 61.1 85.7 (29) % 258.9 495.5 (48) %

Total consolidated $ 1,271.8 $ 1,307.7 (3) % $ 4,835.0 $ 5,292.1 (9) %revenuesSegment operating income/(loss):Consumer-to-Consumer $ 229.6 $ 228.1 1 % $ 924.7 $ 975.4 (5) %

Business Solutions (0.2) 11.0 (e) 24.4 46.8 (48) %

Other ^(a) (b) 9.7 4.0 (e) 55.0 27.3 (e)

Total segment 239.1 243.1 (2) % 1,004.1 1,049.5 (4) %operating incomeRestructuring-related (12.0) (16.6) (28) % (36.8) (115.5) (68) %expenses ^(c)Total consolidated $ 227.1 $ 226.5 0 % $ 967.3 $ 934.0 4 %operating incomeSegment operating income/(loss) margin^(d)Consumer-to-Consumer 20.5 % 20.3 % 0.2 % 21.9 % 22.1 % (0.2) %

Business Solutions (0.2) % 11.3 % (11.5) % 6.9 % 12.0 % (5.1) %

Other ^(a) 15.8 % 4.6 % 11.2 % 21.2 % 5.5 % 15.7 %

(a)

Other primarily includes the Company's cash-based and electronic-based bill payment services which facilitate payments from consumers to businesses and other organizations and the Company's money order services.(b)

On May 9, 2019, the Company completed the sale of its United States electronic bill payments business known as Speedpay to ACI Worldwide Corp. and ACW Worldwide, Inc. for approximately $750 million in cash. In addition, on May 6, 2019, the Company completed the sale of Paymap Inc. ("Paymap"), which provides electronic mortgage bill payment services, for contingent consideration and immaterial cash proceeds received at closing. Both Speedpay and Paymap were included as a component of Other in the Company's segment reporting. Revenues attributed to Speedpay and Paymap included in the Company's results were $130.7 million for the twelve months ended December 31, 2019. Operating income attributed to Speedpay and Paymap, excluding corporate allocations, was $30.3 million for the twelve months ended December 31, 2019.(c)

Restructuring-related expenses have been excluded from the measurement of segment operating income provided to the chief operating decision maker for purposes of assessing segment performance and decision making with respect to resource allocation.(d)

In the first quarter of 2020, we changed our expense allocation method so that our corporate data center and network engineering information technology expenses are allocated based on a percentage of relative revenue. In 2019, these costs had been allocated based in part on a percentage of relative transactions. We believe that an allocation method based fully on relative revenue presents a more representative view of segment profitability, as certain of our services, particularly some of our bill payment services and our money order services, have much lower revenues per transaction than our other services. Further, these technology expenses are becoming increasingly based on data storage utilized and less based on the number of transactions processed. For the three and twelve months ended December 31, 2019, this change would have decreased Consumer-to-Consumer operating income and increased Other operating income by $11.8 million and $49.6 million, respectively. Business Solutions was not materially impacted by the change in the allocation method.(e)

Calculation not meaningful. Other primarily includes the Company's cash-based and electronic-based(a) bill payment services which facilitate payments from consumers to businesses and other organizations and the Company's money order services. On May 9, 2019, the Company completed the sale of its United States electronic bill payments business known as Speedpay to ACI Worldwide Corp. and ACW Worldwide, Inc. for approximately $750 million in cash. In addition, on May 6, 2019, the Company completed the sale of Paymap Inc. ("Paymap"), which provides electronic mortgage bill payment(b) services, for contingent consideration and immaterial cash proceeds received at closing. Both Speedpay and Paymap were included as a component of Other in the Company's segment reporting. Revenues attributed to Speedpay and Paymap included in the Company's results were $130.7 million for the twelve months ended December 31, 2019. Operating income attributed to Speedpay and Paymap, excluding corporate allocations, was $30.3 million for the twelve months ended December 31, 2019. Restructuring-related expenses have been excluded from the measurement(c) of segment operating income provided to the chief operating decision maker for purposes of assessing segment performance and decision making with respect to resource allocation. In the first quarter of 2020, we changed our expense allocation method so that our corporate data center and network engineering information technology expenses are allocated based on a percentage of relative revenue. In 2019, these costs had been allocated based in part on a percentage of relative transactions. We believe that an allocation method based fully on relative revenue presents a more representative view of segment profitability, as certain of our services, particularly(d) some of our bill payment services and our money order services, have much lower revenues per transaction than our other services. Further, these technology expenses are becoming increasingly based on data storage utilized and less based on the number of transactions processed. For the three and twelve months ended December 31, 2019, this change would have decreased Consumer-to-Consumer operating income and increased Other operating income by $11.8 million and $49.6 million, respectively. Business Solutions was not materially impacted by the change in the allocation method.(e) Calculation not meaningful.

THE WESTERN UNION COMPANYNOTES TO KEY STATISTICS(in millions, unless indicated otherwise)(Unaudited)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. We have also included non-GAAP revenues that remove the impact of Speedpay and Paymap in order to provide a more meaningful comparison of results from continuing operations.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, where not previously reconciled above.THE WESTERN UNION COMPANYNOTES TO KEY STATISTICS(in millions, unless indicated otherwise)(Unaudited) Western Union's management believes the non-GAAP financial measures presentedprovide meaningful supplemental information regarding our operating results toassist management, investors, analysts, and others in understanding ourfinancial results and to better analyze trends in our underlying businessbecause they provide consistency and comparability to prior periods. We havealso included non-GAAP revenues that remove the impact of Speedpay and Paymapin order to provide a more meaningful comparison of results from continuingoperations. A non-GAAP financial measure should not be considered in isolation or as asubstitute for the most comparable GAAP financial measure. A non-GAAP financialmeasure reflects an additional way of viewing aspects of our operations that,when viewed with our GAAP results and the reconciliation to the correspondingGAAP financial measure, provide a more complete understanding of our business.Users of the financial statements are encouraged to review our financialstatements and publicly-filed reports in their entirety and not to rely on anysingle financial measure. A reconciliation of non-GAAP financial measures tothe most directly comparable GAAP financial measures is included below, wherenot previously reconciled above.Three Months Ended December 31, 2020

Notes

Revenues

Operating Income

Income Before Income Taxes

Provision for Income Taxes

Net Income

Diluted Earnings per Share

(in millions, except per share amounts)Reported results (GAAP)$1,271.8

$227.1

$199.0

$21.9

$177.1

$0.43

Restructuring related expenses and related tax benefit(m)-

12.0

12.0

2.6

9.4

0.02

Acquisition and divestiture costs and related tax benefit(n)-

0.3

0.3

-

0.3

-

Adjusted results (non-GAAP)$1,271.8

$239.4

$211.3

$24.5

$186.8

$0.45

Foreign currency translation impact(j)22.4

Revenues, constant currency adjusted (non-GAAP)$1,294.2

Three Months Ended December 31, 2019

Notes

Revenues

Operating Income

Income Before Income Taxes

Provision for Income Taxes

Net Income

Diluted Earnings per Share

(in millions, except per share amounts)Reported results (GAAP)$1,307.7

$226.5

$197.5

$62.1

$135.4

$0.32

Restructuring related expenses and related tax benefit(m)-

16.6

16.6

5.9

10.7

0.02

Acquisition and divestiture costs and related tax benefit(n)-

0.9

0.9

0.2

0.7

-

Elimination of previously forecasted annual base-erosion anti-abuse taxes related to the gain on the sale of Speedpay and Paymap(k)-

-

-

(15.4)

15.4

0.04

Adjusted results (non-GAAP)$1,307.7

$244.0

$215.0

$52.8

$162.2

$0.38

Quarter over quarter growth/(decline) (GAAP)(3)

%

0

%

1

%

(65)

%

31

%

34

%

Quarter over quarter growth/(decline) (non-GAAP)(3)

%

(2)

%

(2)

%

(53)

%

15

%

18

%

Quarter over quarter growth/(decline), constant currency adjusted (non-GAAP)(1)

%

Twelve Months Ended December 31, 2020

Notes

Revenues

Operating Income

Income Before Income Taxes

Provision for Income Taxes

Net Income

Diluted Earnings per Share

(in millions, except per share amounts)Reported results (GAAP)$4,835.0

$967.3

$855.1

$110.8

$744.3

$1.79

Restructuring related expenses and related tax benefit(m)-

36.8

36.8

5.3

31.5

0.08

Acquisition and divestiture costs and related tax benefit(n)-

2.5

2.5

0.5

2.0

-

Adjusted results (non-GAAP)$4,835.0

$1,006.6

$894.4

$116.6

$777.8

$1.87

Foreign currency translation impact(j)157.2

Revenues, constant currency adjusted (non-GAAP)$4,992.2

Twelve Months Ended December 31, 2019

Notes

Revenues

Operating Income

Income Before Income Taxes

Provision for Income Taxes

Net Income

Diluted Earnings per Share

(in millions, except per share amounts)Reported results (GAAP)$5,292.1

$934.0

$1,321.4

$263.1

$1,058.3

$2.46

Less Speedpay and Paymap revenues(k)(130.7)

-

-

-

-

-

Restructuring related expenses and related tax benefit(m)-

115.5

115.5

25.5

90.0

0.21

Acquisition and divestiture costs and related tax benefit(n)-

16.0

16.0

3.6

12.4

0.03

Gain on sales of Speedpay and Paymap and related tax expense (includes elimination of previously forecasted annual base-erosion anti-abuse taxes)(k)-

-

(524.6)

(109.5)

(415.1)

(0.97)

Adjusted results (non-GAAP)$5,161.4

$1,065.5

$928.3

$182.7

$745.6

$1.73

Year over year growth/(decline) (GAAP)(9)

%

4

%

(35)

%

(58)

%

(30)

%

(27)

%

Year over year growth/(decline) (non-GAAP) (2)(6)

%

(6)

%

(4)

%

(36)

%

4

%

8

%

Year over year growth/(decline), excluding Speedpay and Paymap, constant currency adjusted (non-GAAP)(3)

%

Three Months Ended December 31, 2020

Income Provision Diluted Notes Revenues Operating Before for Net Earnings Income Income Income Income per Taxes Taxes Share

(in millions,except per shareamounts)Reported 1,271.8 227.1 199.0 21.9 177.1 0.43 results $ $ $ $ $ $(GAAP)Restructuringrelated - 12.0 12.0 2.6 9.4 0.02 expenses and (m)related taxbenefitAcquisitionanddivestiture (n) - 0.3 0.3 - 0.3 - costs andrelated taxbenefitAdjusted 1,271.8 239.4 211.3 24.5 186.8 0.45 results $ $ $ $ $ $(non-GAAP)Foreigncurrency (j) 22.4 translationimpactRevenues,constant 1,294.2 currency $adjusted(non-GAAP)

Three Months Ended December 31, 2019

Income Provision Diluted Notes Revenues Operating Before for Net Earnings Income Income Income Income per Taxes Taxes Share

(in millions,except per shareamounts)Reported 1,307.7 226.5 197.5 62.1 135.4 0.32 results $ $ $ $ $ $(GAAP)Restructuringrelated - 16.6 16.6 5.9 10.7 0.02 expenses and (m)related taxbenefitAcquisitionanddivestiture (n) - 0.9 0.9 0.2 0.7 - costs andrelated taxbenefitEliminationof previouslyforecastedannualbase-erosion - - - (15.4) 15.4 0.04 anti-abuse (k)taxes relatedto the gainon the saleof Speedpayand PaymapAdjusted 1,307.7 244.0 215.0 52.8 162.2 0.38 results $ $ $ $ $ $(non-GAAP)

Quarter overquarter (3) % 0 % 1 % (65) % 31 % 34 %growth/(decline)(GAAP)Quarter overquarter (3) % (2) % (2) % (53) % 15 % 18 %growth/(decline)(non-GAAP)Quarter overquartergrowth/(decline), (1) % constantcurrencyadjusted(non-GAAP)

Twelve Months Ended December 31, 2020

Income Provision Diluted Notes Revenues Operating Before for Net Earnings Income Income Income Income per Taxes Taxes Share

(in millions,except per shareamounts)Reported 4,835.0 967.3 855.1 110.8 744.3 1.79 results $ $ $ $ $ $(GAAP)Restructuringrelated - 36.8 36.8 5.3 31.5 0.08 expenses and (m)related taxbenefitAcquisitionanddivestiture (n) - 2.5 2.5 0.5 2.0 - costs andrelated taxbenefitAdjusted 4,835.0 1,006.6 894.4 116.6 777.8 1.87 results $ $ $ $ $ $(non-GAAP)Foreigncurrency (j) 157.2 translationimpactRevenues,constant 4,992.2 currency $adjusted(non-GAAP)





Twelve Months Ended December 31, 2019

Income Provision Diluted Notes Revenues Operating Before for Net Earnings Income Income Income Income per Taxes Taxes Share

(in millions,except per shareamounts)Reported 5,292.1 934.0 1,321.4 263.1 1,058.3 2.46 results $ $ $ $ $ $(GAAP)Less Speedpay (130.7) - - - - - and Paymap (k)revenuesRestructuringrelated - 115.5 115.5 25.5 90.0 0.21 expenses and (m)related taxbenefitAcquisitionanddivestiture (n) - 16.0 16.0 3.6 12.4 0.03 costs andrelated taxbenefitGain on salesof Speedpayand Paymapand relatedtax expense(includes - - (524.6) (109.5) (415.1) (0.97) elimination (k)of previouslyforecastedannualbase-erosionanti-abusetaxes)Adjusted 5,161.4 1,065.5 928.3 182.7 745.6 1.73 results $ $ $ $ $ $(non-GAAP)

Year overyear growth/ (9) % 4 % (35) % (58) % (30) % (27) %(decline)(GAAP)Year overyear growth/ (6) % (6) % (4) % (36) % 4 % 8 %(decline)(non-GAAP) ^(2)Year overyear growth/(decline),excludingSpeedpay and (3) % Paymap,constantcurrencyadjusted(non-GAAP)(2)

Revenue measure excludes impact of Speedpay and Paymap; all other measures include the impact of Speedpay and Paymap, but not the gain on sales and related taxes, and exclude restructuring related expenses, acquisition and divestiture costs, and the related tax benefits.

Revenue measure excludes impact of Speedpay and Paymap; all other measures(2) include the impact of Speedpay and Paymap, but not the gain on sales and related taxes, and exclude restructuring related expenses, acquisition and divestiture costs, and the related tax benefits.

Notes

4Q19

FY2019

1Q20

2Q20

3Q20

4Q20

FY2020

Consolidated Metrics(a)Revenues (GAAP)$1,307.7

$5,292.1

$1,190.0

$1,114.7

$1,258.5

$1,271.8

$4,835.0

Foreign currency translation impact(j)41.7

238.9

47.3

46.4

41.1

22.4

157.2

Revenues (non-GAAP, constant currency adjusted)1,349.4

5,531.0

1,237.3

1,161.1

1,299.6

1,294.2

4,992.2

Less revenues from Speedpay and Paymap(k)N/A

(130.7)

N/A

N/A

N/A

N/A

N/A

Revenues, constant currency adjusted and excluding Speedpay and Paymap (non-GAAP)$1,349.4

$5,400.3

$1,237.3

$1,161.1

$1,299.6

$1,294.2

$4,992.2

Prior year revenues (GAAP)$1,401.6

$5,589.9

$1,337.0

$1,340.5

$1,306.9

$1,307.7

$5,292.1

Less prior year revenues from Speedpay and Paymap(k)(88.2)

(368.2)

(91.9)

(38.8)

N/A

N/A

(130.7)

Prior year revenues, adjusted, excluding Speedpay and Paymap (non-GAAP)$1,313.4

$5,221.7

$1,245.1

$1,301.7

$1,306.9

$1,307.7

$5,161.4

Revenues (GAAP) - YoY % Change(7)

%

(5)

%

(11)

%

(17)

%

(4)

%

(3)

%

(9)

%

Revenues, constant currency adjusted and excluding Speedpay and Paymap (non-GAAP) - YoY % Change3

%

3

%

(1)

%

(11)

%

(1)

%

(1)

%

(3)

%

(b)Operating income (GAAP)$226.5

$934.0

$233.2

$221.8

$285.2

$227.1

$967.3

Restructuring-related expenses(m)16.6

115.5

10.5

5.2

9.1

12.0

36.8

Acquisition and divestiture costs(n)0.9

16.0

-

0.7

1.5

0.3

2.5

Operating income, adjusted, excluding restructuring-related expenses and acquisition and divestiture costs (non-GAAP)$244.0

$1,065.5

$243.7

$227.7

$295.8

$239.4

$1,006.6

Operating margin (GAAP)17.3

%

17.6

%

19.6

%

19.9

%

22.7

%

17.9

%

20.0

%

Operating margin, adjusted, excluding restructuring-related expenses and acquisition and divestiture costs (non-GAAP)18.7

%

20.1

%

20.5

%

20.4

%

23.5

%

18.8

%

20.8

%

(c)Operating income (GAAP)$226.5

$934.0

$233.2

$221.8

$285.2

$227.1

$967.3

Depreciation and amortization67.0

257.7

58.2

57.1

54.2

56.1

225.6

EBITDA (non-GAAP)(l)$293.5

$1,191.7

$291.4

$278.9

$339.4

$283.2

$1,192.9

Operating margin (GAAP)17.3

%

17.6

%

19.6

%

19.9

%

22.7

%

17.9

%

20.0

%

EBITDA margin (non-GAAP)22.4

%

22.5

%

24.5

%

25.0

%

27.0

%

22.3

%

24.7

%

(d)Effective tax rate (GAAP)31

%

20

%

13

%

16

%

12

%

11

%

13

%

Impact from restructuring-related expenses(m)0

%

1

%

0

%

0

%

1

%

1

%

0

%

Impact from acquisition and divestiture costs(n)0

%

0

%

0

%

0

%

0

%

0

%

0

%

Impact from gain on sales of Speedpay and Paymap(k)(7)

%

(1)

%

N/A

N/A

N/A

N/A

N/A

Effective tax rate, adjusted, excluding restructuring-related expenses, acquisition and divestiture costs, and gain on sales of Speedpay and Paymap (non-GAAP)24

%

20

%

13

%

16

%

13

%

12

%

13

%

C2C Segment Metrics(e)Revenues (GAAP)$1,125.0

$4,407.8

$1,015.4

$976.6

$1,106.5

$1,121.5

$4,220.0

Foreign currency translation impact(j)14.8

97.1

12.9

18.4

11.1

(1.2)

41.2

Revenues (non-GAAP, constant currency adjusted)$1,139.8

$4,504.9

$1,028.3

$995.0

$1,117.6

$1,120.3

$4,261.2

Prior year revenues (GAAP)$1,127.7

$4,453.6

$1,056.9

$1,112.9

$1,113.0

$1,125.0

$4,407.8

Revenues (GAAP) - YoY % change0

%

(1)

%

(4)

%

(12)

%

(1)

%

0

%

(4)

%

Revenues (non-GAAP, constant currency adjusted) - YoY % change1

%

1

%

(3)

%

(11)

%

0

%

0

%

(3)

%

(f)Principal per transaction, as reported ($- dollars)$300

$303

$308

$322

$348

$341

$331

Foreign currency translation impact ($- dollars)(j)4

7

5

7

1

(2)

2

Principal per transaction (constant currency adjusted) ($- dollars)$304

$310

$313

$329

$349

$339

$333

Prior year principal per transaction, as reported ($- dollars)$301

$305

$302

$303

$307

$300

$303

Principal per transaction, as reported - YoY % change0

%

(1)

%

2

%

7

%

13

%

14

%

9

%

Principal per transaction (constant currency adjusted) - YoY % change1

%

1

%

4

%

9

%

14

%

13

%

10

%

(g)Cross-border principal, as reported ($- billions)$20.5

$80.7

$19.1

$20.7

$25.5

$25.3

$90.6

Foreign currency translation impact ($- billions)(j)0.2

1.8

0.3

0.4

-

(0.1)

0.6

Cross-border principal (constant currency adjusted) ($- billions)$20.7

$82.5

$19.4

$21.1

$25.5

$25.2

$91.2

Prior year cross-border principal, as reported ($- billions)$20.5

$79.9

$19.1

$20.5

$20.6

$20.5

$80.7

Cross-border principal, as reported - YoY % change1

%

1

%

0

%

1

%

23

%

24

%

12

%

Cross-border principal (constant currency adjusted) - YoY % change2

%

3

%

2

%

3

%

24

%

23

%

13

%

Business Solutions Segment Metrics(h)Revenues (GAAP)$97.0

$388.8

$98.4

$79.4

$89.1

$89.2

$356.1

Foreign currency translation impact(j)1.0

12.1

2.2

2.0

(1.9)

(2.4)

(0.1)

Revenues (non-GAAP, constant currency adjusted)$98.0

$400.9

$100.6

$81.4

$87.2

$86.8

$356.0

Prior year revenues (GAAP)$96.8

$386.8

$95.6

$95.6

$100.6

$97.0

$388.8

Revenues (GAAP) - YoY % change0

%

0

%

3

%

(17)

%

(11)

%

(8)

%

(8)

%

Revenues (non-GAAP, constant currency adjusted) - YoY % change1

%

4

%

5

%

(15)

%

(13)

%

(11)

%

(8)

%

(i)Operating income/(loss) (GAAP)$11.0

$46.8

$13.9

$1.3

$9.4

$(0.2)

$24.4

Depreciation and amortization9.8

39.6

9.4

9.3

9.3

8.1

36.1

EBITDA (non-GAAP)(l)$20.8

$86.4

$23.3

$10.6

$18.7

$7.9

$60.5

Operating income margin (GAAP)11.3

%

12.0

%

14.1

%

1.6

%

10.5

%

(0.2)

%

6.9

%

EBITDA margin (non-GAAP)21.5

%

22.2

%

23.7

%

13.2

%

21.1

%

8.8

%

17.0

%

Notes 4Q19 FY2019 1Q20 2Q20 3Q20 4Q20 FY2020

Consolidated Metrics(a) Revenues (GAAP) $ 1,307.7 $ 5,292.1 $ 1,190.0 $ 1,114.7 $ 1,258.5 $ 1,271.8 $ 4,835.0

Foreign currency (j) 41.7 238.9 47.3 46.4 41.1 22.4 157.2 translation impact Revenues (non-GAAP, 1,349.4 5,531.0 1,237.3 1,161.1 1,299.6 1,294.2 4,992.2 constant currency adjusted) Less revenues from (k) N/A (130.7) N/A N/A N/A N/A N/A Speedpay and Paymap Revenues, constant currency adjusted and $ 1,349.4 $ 5,400.3 $ 1,237.3 $ 1,161.1 $ 1,299.6 $ 1,294.2 $ 4,992.2 excluding Speedpay and Paymap (non-GAAP) Prior year revenues $ 1,401.6 $ 5,589.9 $ 1,337.0 $ 1,340.5 $ 1,306.9 $ 1,307.7 $ 5,292.1 (GAAP) Less prior year (88.2) (368.2) (91.9) (38.8) N/A N/A (130.7) revenues from (k) Speedpay and Paymap Prior year revenues, adjusted, excluding $ 1,313.4 $ 5,221.7 $ 1,245.1 $ 1,301.7 $ 1,306.9 $ 1,307.7 $ 5,161.4 Speedpay and Paymap (non-GAAP) Revenues (GAAP) - YoY (7) % (5) % (11) % (17) % (4) % (3) % (9) % % Change Revenues, constant currency adjusted and 3 % 3 % (1) % (11) % (1) % (1) % (3) % excluding Speedpay and Paymap (non-GAAP) - YoY % Change (b) Operating income $ 226.5 $ 934.0 $ 233.2 $ 221.8 $ 285.2 $ 227.1 $ 967.3 (GAAP) Restructuring-related (m) 16.6 115.5 10.5 5.2 9.1 12.0 36.8 expenses Acquisition and (n) 0.9 16.0 - 0.7 1.5 0.3 2.5 divestiture costs Operating income, adjusted, excluding restructuring-related 244.0 1,065.5 243.7 227.7 295.8 239.4 1,006.6 expenses and $ $ $ $ $ $ $ acquisition and divestiture costs (non-GAAP) Operating margin 17.3 % 17.6 % 19.6 % 19.9 % 22.7 % 17.9 % 20.0 % (GAAP) Operating margin, adjusted, excluding restructuring-related 18.7 % 20.1 % 20.5 % 20.4 % 23.5 % 18.8 % 20.8 % expenses and acquisition and divestiture costs (non-GAAP) (c) Operating income $ 226.5 $ 934.0 $ 233.2 $ 221.8 $ 285.2 $ 227.1 $ 967.3 (GAAP) Depreciation and 67.0 257.7 58.2 57.1 54.2 56.1 225.6 amortization EBITDA (non-GAAP) (l) $ 293.5 $ 1,191.7 $ 291.4 $ 278.9 $ 339.4 $ 283.2 $ 1,192.9

Operating margin 17.3 % 17.6 % 19.6 % 19.9 % 22.7 % 17.9 % 20.0 % (GAAP) EBITDA margin 22.4 % 22.5 % 24.5 % 25.0 % 27.0 % 22.3 % 24.7 % (non-GAAP) (d) Effective tax rate 31 % 20 % 13 % 16 % 12 % 11 % 13 % (GAAP) Impact from 0 % 1 % 0 % 0 % 1 % 1 % 0 % restructuring-related (m) expenses Impact from 0 % 0 % 0 % 0 % 0 % 0 % 0 % acquisition and (n) divestiture costs Impact from gain on (7) % (1) % N/A N/A N/A N/A N/A sales of Speedpay and (k) Paymap Effective tax rate, adjusted, excluding restructuring-related expenses, acquisition 24 % 20 % 13 % 16 % 13 % 12 % 13 % and divestiture costs, and gain on sales of Speedpay and Paymap (non-GAAP) C2C Segment Metrics(e) Revenues (GAAP) $ 1,125.0 $ 4,407.8 $ 1,015.4 $ 976.6 $ 1,106.5 $ 1,121.5 $ 4,220.0

Foreign currency (j) 14.8 97.1 12.9 18.4 11.1 (1.2) 41.2 translation impact Revenues (non-GAAP, 1,139.8 4,504.9 1,028.3 995.0 1,117.6 1,120.3 4,261.2 constant currency $ $ $ $ $ $ $ adjusted) Prior year revenues $ 1,127.7 $ 4,453.6 $ 1,056.9 $ 1,112.9 $ 1,113.0 $ 1,125.0 $ 4,407.8 (GAAP) Revenues (GAAP) - YoY 0 % (1) % (4) % (12) % (1) % 0 % (4) % % change Revenues (non-GAAP, constant currency 1 % 1 % (3) % (11) % 0 % 0 % (3) % adjusted) - YoY % change Principal per 300 303 308 322 348 341 331(f) transaction, as $ $ $ $ $ $ $ reported ($- dollars) Foreign currency 4 7 5 7 1 (2) 2 translation impact (j) ($- dollars) Principal per transaction (constant $ 304 $ 310 $ 313 $ 329 $ 349 $ 339 $ 333 currency adjusted) ($- dollars) Prior year principal 301 305 302 303 307 300 303 per transaction, as $ $ $ $ $ $ $ reported ($- dollars) Principal per transaction, as 0 % (1) % 2 % 7 % 13 % 14 % 9 % reported - YoY % change Principal per transaction (constant 1 % 1 % 4 % 9 % 14 % 13 % 10 % currency adjusted) - YoY % change Cross-border(g) principal, as $ 20.5 $ 80.7 $ 19.1 $ 20.7 $ 25.5 $ 25.3 $ 90.6 reported ($- billions) Foreign currency 0.2 1.8 0.3 0.4 - (0.1) 0.6 translation impact (j) ($- billions) Cross-border principal (constant $ 20.7 $ 82.5 $ 19.4 $ 21.1 $ 25.5 $ 25.2 $ 91.2 currency adjusted) ($- billions) Prior year cross-border 20.5 79.9 19.1 20.5 20.6 20.5 80.7 principal, as $ $ $ $ $ $ $ reported ($- billions) Cross-border principal, as 1 % 1 % 0 % 1 % 23 % 24 % 12 % reported - YoY % change Cross-border principal (constant 2 % 3 % 2 % 3 % 24 % 23 % 13 % currency adjusted) - YoY % change Business Solutions Segment Metrics(h) Revenues (GAAP) $ 97.0 $ 388.8 $ 98.4 $ 79.4 $ 89.1 $ 89.2 $ 356.1

Foreign currency (j) 1.0 12.1 2.2 2.0 (1.9) (2.4) (0.1) translation impact Revenues (non-GAAP, 98.0 400.9 100.6 81.4 87.2 86.8 356.0 constant currency $ $ $ $ $ $ $ adjusted) Prior year revenues $ 96.8 $ 386.8 $ 95.6 $ 95.6 $ 100.6 $ 97.0 $ 388.8 (GAAP) Revenues (GAAP) - YoY 0 % 0 % 3 % (17) % (11) % (8) % (8) % % change Revenues (non-GAAP, constant currency 1 % 4 % 5 % (15) % (13) % (11) % (8) % adjusted) - YoY % change (i) Operating income/ $ 11.0 $ 46.8 $ 13.9 $ 1.3 $ 9.4 $ (0.2) $ 24.4 (loss) (GAAP) Depreciation and 9.8 39.6 9.4 9.3 9.3 8.1 36.1 amortization EBITDA (non-GAAP) (l) $ 20.8 $ 86.4 $ 23.3 $ 10.6 $ 18.7 $ 7.9 $ 60.5

Operating income 11.3 % 12.0 % 14.1 % 1.6 % 10.5 % (0.2) % 6.9 % margin (GAAP) EBITDA margin 21.5 % 22.2 % 23.7 % 13.2 % 21.1 % 8.8 % 17.0 % (non-GAAP)THE WESTERN UNION COMPANYNOTES TO KEY STATISTICS(in millions, unless indicated otherwise)(Unaudited)Non-GAAP related notes:(j)

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. We believe that this measure provides management and investors with information about revenue results and trends that eliminates currency volatility while increasing the comparability of our underlying results and trends.(k)

On May 9, 2019, we completed the sale of our United States electronic bill payments business known as "Speedpay" to ACI Worldwide Corp. and ACW Worldwide, Inc. ("ACI") for approximately $750 million in cash. In addition, on May 6, 2019, we completed the sale of Paymap Inc. ("Paymap"), which provides electronic mortgage bill payment services, for contingent consideration and immaterial cash proceeds received at closing. Both Speedpay and Paymap were included as a component of "Other" in our segment reporting. Revenue has been adjusted to exclude the carved out financial information for Speedpay and Paymap and the gain on the sales and the income taxes on the gain, including the elimination of previously forecasted annual base-erosion anti-abuse taxes, has been removed from adjusted effective tax rate. These financial measures are non-GAAP measures and should not be considered a substitute for the GAAP measures. We have included this information because management believes that presenting these measures as adjusted to exclude divestitures will provide investors with a more meaningful comparison of results within the periods presented. Additionally, Speedpay and Paymap contributions to operating income exclude corporate overhead allocations.(l)

Earnings before Interest, Taxes, Depreciation, and Amortization ("EBITDA") results from taking operating income and adjusting for depreciation and amortization expenses. EBITDA results provide an additional performance measurement calculation which helps neutralize the operating income effect of assets acquired in prior periods.(m)

Represents impact from expenses incurred in connection with an overall restructuring plan, approved by the Board of Directors on August 1, 2019, to improve our business processes and cost structure by reducing headcount and consolidating various facilities. While certain of these expenses are identifiable to our business segments, primarily to our Consumer-to-Consumer segment, they have been excluded from the measurement of segment operating income provided to the Chief Operating Decision Maker for purposes of assessing segment performance and decision making with respect to resource allocation. These expenses are therefore excluded from the Company's segment operating income results. While these expenses are specific to this initiative, the types of expenses related to this initiative are similar to expenses that we have previously incurred and can reasonably be expected to incur in the future. We believe that, by excluding the effects of these charges that can impact operating trends, management and investors are provided with a measure that increases the comparability of our underlying operating results.(n)

Represents the impact from expenses incurred in connection with our acquisition and divestiture activity, including the Speedpay and Paymap divestitures. We believe that, by excluding the effects of these charges that can impact operating trends, management and investors are provided with a measure that increases the comparability of our underlying operating results.Other notes:(aa)

Geographic split for transactions and revenue, including transactions initiated digitally, as defined above, is determined entirely based upon the region where the money transfer is initiated.(bb)

Represents the North America (United States and Canada) ("NA") region of our Consumer-to-Consumer segment.(cc)

Represents the Europe and the Russia/Commonwealth of Independent States ("EU & CIS") region of our Consumer-to-Consumer segment.(dd)

Represents the Middle East, Africa, and South Asia ("MEASA") region of our Consumer-to-Consumer segment, including India and certain South Asian countries, which consist of Bangladesh, Bhutan, Maldives, Nepal, and Sri Lanka.(ee)

Represents the Latin America and the Caribbean ("LACA") region of our Consumer-to-Consumer segment, including Mexico.(ff)

Represents the East Asia and Oceania ("APAC") region of our Consumer-to-Consumer segment.(gg)

Represents transactions, including transactions initiated digitally, as defined above, outside the United States, between and within foreign countries (including Canada and Mexico). Excludes all transactions originated in the United States.(hh)

Represents transactions originated in the United States, including intra-country transactions and transactions initiated digitally, as defined above, from the United States.(ii)

Represents transactions conducted and funded through websites and mobile apps marketed under our brands ("westernunion.com"). View source version on businesswire.com: https://www.businesswire.com/news/home/20210210005906/en/

CONTACT: Media Relations: Pia De Lima +1(954) 260-5732 Pia.DeLima@westernunion.com

CONTACT: Investor Relations: Brendan Metrano +1(720) 332-8089 Brendan.Metrano@westernunion.com