Paul

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Transcript of Paul

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Non-GAAP financial measuresWith respect to any non-GAAP financial measures presented in the information, reconciliations of non-GAAP to GAAP financial measures may be found in Verifone’s quarterly earnings release as filed with the Securities and Exchange Commission as well as the Appendix to these slides. Management uses non-GAAP financial measures only in addition to and in conjunction with results presented in accordance with GAAP. Management believes that these Non-GAAP financial measures help it to evaluate Verifone’s performance and to compare Verifone’s current results with those for prior periods as well as with the results of peer companies. These non-GAAP financial measures contain limitations and should be considered as a supplement to, and not as a substitute for, or superior to, disclosures made in accordance with GAAP

Forward looking statementsToday’s discussion may include “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements relate to future events and expectations and involve known and unknown risks and uncertainties. Verifone’s actual results or actions may differ materially from those projected in the forward-looking statements. For a summary of the specific risk factors that could cause results to differ materially from those expressed in the forward-looking statements, please refer to Verifone’s filings with the Securities and Exchange Commission, including its annual report on Form 10-K and quarterly reports on Form 10- Q. Verifone is under no obligation to, and expressly disclaims any obligation to, update or alter its forward-looking statements, whether as a result of new information, future events, changes in assumptions or otherwise

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Sheetal ShahOperations

Increasing efficiency and discipline

Joe MachJune FelixCarlos LimaSteve AliferisRegional Leadership

Delivering global solutions locally

Marc RothmanFinance

Driving improved results and delivering greater shareholder value

Paul GalantVision

Driven by clients’ current and future needs

Vin D’Agostino Strategy

Defining market dynamics and strategy for growth

Glen RobsonSolutions

Launching next-generation, client-centric devices and services

Agenda

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Sheetal ShahOperations

Increasing efficiency and discipline

Joe MachJune FelixCarlos LimaSteve AliferisRegional Leadership

Delivering global solutions locally

Marc RothmanFinance

Driving improved results and delivering greater shareholder value

Paul GalantVision

Driven by clients’ current and future needs

Vin D’Agostino Strategy

Defining market dynamics and strategy for growth

Glen RobsonSolutions

Launching next-generation, client-centric devices and services

Agenda

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Verifone history

mPOS series

Mxseries

Verifonefounded

Vxseries

20041981 2014 201620082006 20122010

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Verifone is a company that is essential to the payments industry

Verifone cloud services process 7.6B transactions

annually

~30M devices globally accepting

payments securely

Payments accepted across >150 countries

We earned $2B total revenue in

FY16

~6,000 professionals

working around the world

We are a leader in virtually all

markets where we operate

Provide our clients with:• Consumer payments acceptance• Connectivity between merchants and financial institutions• Security and comprehensive payment and commerce services

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OUR VISION

To be our clients’ most trusted, secure, and innovative technology partner, providing integrated payments and commerce solutions globally

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Verifone’s clients are facing unprecedented change

Acceleration away from cash to

electronic payments

Growing consumer expectation for omni-channel experiences

1 2 3 4 5

IMAGE IMAGE IMAGE

Increasing complexity of

consumer payments

Proliferation of POS solutions

Convergence of payments and

commerce

Market forces impacting our clients

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Our clients need Verifone to help navigate these market forces and drive growth

Create more POS touch points with high personalization and accept payments in multiple formats

Drive differentiated and higher yielding consumer relationships to compete on more than price

Reduce security and fraud risks

Lower total cost of ownership

Enable omni-channel experiences

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• 35 years of experience deploying highly secure and ubiquitous payment solutions across the globe

• We are a truly global, Silicon Valley based technology company, with deep payments expertise

• We operate as a solutions company, leveraging global scale and local execution

• We have a focused innovation agenda targeting frictionless consumer authentication and identity, Internet of Payment Things, and alternative payments

• Our guiding principle is that we are an enabler to our clients and do not compete in their core businesses

Verifone is a strong and unique partner for our clients

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OUR STRATEGY

Build next-generation devices and connect them with our expanded services to enable the future of payments and commerce

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To execute this strategy, we set four goals in FY14…

Earn back the trust of our clients1

Launch next-generation devices to meet the evolving needs of our clients 2

Enable new omni-channel and commerce capabilities through proprietary technology and partnerships

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Connect our clients to Verifone cloud services through new platforms3

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… and we have made material progress in achieving them …

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1 Earn back the trust of our clients

Connect our clients to Verifone cloud services

Launch next-generation devices

4 Enable new omni-channel and commerce capabilities

FY14 Today

• Terminal sales orientation• Solutions and

relationship orientation

• Multiple operating systems, gateways, and services

• Streamlined platforms for payments and commerce

• Fragmented terminal base with limited capabilities

• Next-generation commerce capable devices

• Limited e-commerce and omni capability

• Broader e-commerce and omni technology and partnerships

Status

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… creating real value for our clients and Verifone

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3

2

4

Earn back the trust of our clients

Connect our clients to Verifone cloud services

Launch next-generation devices

Enable new omni-channel and commerce capabilities

Our impact

We’ve significantly increased revenues with our Top 100 clients over the past 3 years

We have ~2 million devices connected to our payment services platforms globally

Next-generation devices will generate between 5-10% of revenue in FY17

Our non-GAAP Services revenue has grown from ~38% in FY14 to an expected 41% in FY17

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In FY17, we begin one of the most robust launches of new devices and services that will fuel our growth through FY20

mPOS series

Mxseries

Verifone founded

Vxseries

Engage SeriesE-series (mPOS)Value SeriesCarbon (iPOS)

Device ServicesPayment ServicesCommerce ServicesOmni-channel

20041981 2017201620082006 2011

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IProvide newsolutions in the

market segmentswhere we operate IIExpand our share

in under-penetrated geographies

Capture newsegments withnew solutions

Our success provides a foundation from which we will establish three pillars of growth increasing total revenues at a CAGR of 5-6%

VerifoneFY17 – FY20 CAGR

Value CarbonSystems

DeviceServices

Payment Services

Commerce Services

Omni-channelServices

+4-5%

+7-8%

Engage E-series

Note: P&L figures are non-GAAP

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Success with our clients translates into success with our shareholders

RevenueGrowth

+5-6%FY17-FY20

CAGR

OperatingMargin Target

15%-16%FY20

EPS Growth

~15%FY17-FY20

CAGR

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Note: P&L figures are non-GAAP