Second Quarter 2023 Earnings Conference Call
Forward-looking Statements
Certain statements in this presentation constitute "forward-looking statements" within the meaning of, and subject to the protection of, the Private Securities
Litigation Reform Act of 1995. Such forward-looking statements involve known and unknown risks, uncertainties, and other factors that may cause the actual
results, performance or achievements of EVERTEC to be materially different from any future results, performance or achievements expressed or implied by
such forward-looking statements. Statements preceded by, followed by, or that otherwise include the words "believes," "expects," "anticipates," "intends,"
"projects," "estimates," and "plans" and similar expressions of future or conditional verbs such as "will," "should," "would," "may," and "could" are generally
forward-looking in nature and not historical facts. Any statements that refer to expectations or other characterizations of future events, circumstances or
results are forward-looking statements, including expectations that the expanded revolving facility will provide the Company with greater flexibility to execute
on its strategic imperatives with a continued focus on M&A. Various factors that could cause actual future results and other future events to differ materially
from those estimated by management include, but are not limited to: the Company's reliance on its relationship with Popular, Inc. ("Popular") for a significant
portion of its revenues pursuant to the Company's second amended and restated Master Services Agreement ("MSA") with them, and to grow the Company's
merchant acquiring business; the Company's ability to renew its client contracts on terms favorable to the Company, including but not limited to the current
term and any extension of the MSA with Popular; the Company's dependence on its processing systems, technology infrastructure, security systems and
fraudulent payment detection systems, as well as on the Company's personnel and certain third parties with whom it does business, and the risks to the
Company's business if its systems are hacked or otherwise compromised; the Company's ability to develop, install and adopt new software, technology and
computing systems; a decreased client base due to consolidations and failures in the financial services industry; the credit risk of the Company's merchant
clients, for which it may also be liable; the continuing market position of the ATH network; a reduction in consumer confidence, whether as a result of a global
economic downturn or otherwise, which leads to a decrease in consumer spending; the Company's dependence on credit card associations, including any
adverse changes in credit card association or network rules or fees; changes in the regulatory environment and changes in international, legal, tax, political,
administrative or economic conditions; the geographical concentration of the Company's business in Puerto Rico, including its business with the government
of Puerto Rico and its instrumentalities, which are facing severe political and fiscal challenges; additional adverse changes in the general economic conditions
in Puerto Rico, whether as a result of the government's debt crisis or otherwise, including the continued migration of Puerto Ricans to the U.S. mainland,
which could negatively affect the Company's customer base, general consumer spending, the Company's cost of operations and the Company's ability to hire
and retain qualified employees; operating an international business in Latin America and the Caribbean, in jurisdictions with potential political and economic
instability; the impact of foreign exchange rates on operations; the Company's ability to protect its intellectual property rights against infringement and to
defend itself against claims of infringement brought by third parties; the Company's ability to comply with U.S. federal, state, local and foreign regulatory
requirements; evolving industry standards and adverse changes in global economic, political and other conditions; the Company's level of indebtedness and
restrictions contained in the Company's debt agreements, including the secured credit facilities, as well as debt that could be incurred in the future; the
Company's ability to prevent a cybersecurity attack or breach to its information security; the possibility that the Company could lose its preferential tax rate in
Puerto Rico; the possibility of future catastrophic hurricanes, earthquakes and other potential natural disasters affecting the Company's main markets in Latin
America and the Caribbean; and uncertainty related to the effect of the discontinuation of the London Interbank Offered Rate; the elimination of Popular's
ownership of the Company's common stock; and the other factors set forth under "Part 1, Item 1A. Risk Factors," in the Company's Annual Report on Form
10-K for the fiscal year ended December 31, 2022 filed with the Securities and Exchange Commission (the "SEC") on February 24, 2023, as any such factors
may be updated from time to time in the Company's filings with the SEC. The Company undertakes no obligation to release publicly any revisions to any
forward-looking statements, to report events or to report the occurrence of unanticipated events unless it is required to do so by law.
Use of Non-GAAP Measures
This presentation will reference certain non-GAAP financial information. For a description and reconciliation of non-GAAP measures presented in this
document, please see the appendix attached to this presentation or visit the Investor Relations section of the Evertec website at www.evertecinc.com.
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