Section 1 Conflict Minerals Disclosure
Section 1.01 Conflict Minerals Disclosure
Based in
Columbus, Georgia, and traded on the New York Stock Exchange under the symbol TSS, Total System Services, Inc. (TSYS or the Company) is a global payment solutions provider that provides payment processing
services, merchant services and related payment services to financial and nonfinancial institutions. In addition, TSYS provides general purpose reloadable prepaid debit and payroll cards, demand deposit accounts and other financial service solutions
to the underbanked and other consumers and businesses. The services we provide were divided into three operating segments during 2018, Issuer Solutions, which accounted for 46% of our revenues in 2018, Merchant Solutions, which accounted for 34% of
our revenues in 2018, and Consumer Solutions, which accounted for 20% of our revenues in 2018.
Summary
Based on TSYS reasonable country of origin inquiry (RCOI) and the procedures described in this Form SD, TSYS has determined that, with
respect to the products required to be reported by this Form SD for the period from January 1, 2018 to December 31, 2018 (the Reporting Period), the Company has no reason to believe that its necessary conflict minerals may have
originated in the Democratic Republic of the Congo or an adjoining country (collectively the DRC), as those terms are defined by the Securities and Exchange Commission.
Reasonable Country of Origin Inquiry
TSYS follows a
conflict minerals policy and related procedures focused on TSYS commitment to sourcing components and materials from suppliers that share its ethical values and that support compliance with the Securities and Exchange Commissions
regulations as well as TSYS disclosure obligations related to conflict minerals. These policies and related procedures have guided TSYS continued development and deployment of internal systems, supply chain due diligence efforts and,
ultimately, TSYS RCOI conducted in connection with this Form SD.
Throughout 2018, TSYS conflict minerals efforts, and RCOI process, were
designed to confirm conflict mineral content in TSYS manufactured (or contracted to be manufactured) products, further obtain transparency into its product supply chain for such products, and, more generally, to increase engagement from its
suppliers concerning conflict minerals issues. The specific goal of TSYS RCOI was to determine whether the conflict minerals in its relevant products originated in the DRC. In part, TSYS 2018 RCOI process included:
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maintaining a long-term working group comprised of representatives from TSYS operational, legal and supply
chain functions, as well as external advisors with conflict minerals expertise;
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surveying TSYS suppliers to verify critical information about the presence and origin of conflict minerals
contained in the products they supply to TSYS;
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communicating diligently with any significant suppliers that did not timely respond to surveys or provided
incomplete surveys; and
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analyzing supplier responses and evaluating information in a manner designed to provide the Company with a
reasonable basis for its conclusions in this Form SD.
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Specifically, TSYS arrived at the determination described in this Form SD by
conducting, in good faith, its RCOI regarding the conflict minerals that (i) TSYS identified as necessary to the functionality or the production of its manufactured and contracted to be manufactured products and (ii) were subject to review
in this Reporting Period. For purposes of TSYS conflict minerals analysis in this Form SD, TSYS considered the specific products that TSYS manufactured or contracted to manufacture and delivered to its customers during the Reporting Period as
completed. Therefore, in connection with this Form SD, the term Completed Products refers to the specific products that TSYS manufactured or contracted to manufacture and delivered to its customers during the Reporting
Period.
As part of the RCOI, TSYS identified its suppliers that delivered products, materials, or supplies to TSYS from January 1, 2018 through
December 31, 2018, and surveyed these suppliers soliciting information concerning the presence, if any, and source, of conflict minerals in the items supplied to TSYS. In connection with this process and
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