Slide 1: Fourth-Quarter and Full-Year 2011 Financial Results Conference Call
MasterCard Incorporated F Fourth-Quarter hQ andd FFull-Year ll Y 2011 Financial Results Conference Call February 2, 2012
Slide 2: Recent Performance vs. Long-Term Objectives
Recent Performance vs. Long-Term Objectives Current C 3 3--Year Y Full- F ll-Year Full Y 2011 Objectives* Performance* Net Revenue 12-14% 12 14% 19.5% Growth CAGR Minimum Operating 50% 51.8%** Margin annually Earnings Per 20%+ 31.2%** Share Growth CAGR * On a constant currency basis ** Excluding the
Slide 3: 4th Quarter Selected Financial Performance
4th Q Quarter Selected Financial Performance ($ in millions, except per share data) 4Q 11 Non‐GAAP 4Q 10 YOY excl. special item* Actual Growth Net revenue $ 1,728 $ 1,438 20.2% Total operating expenses 968 869 11.5% Operating income 760 569 33.5% Operating p g margin g 44.0% 39.6% 4.4 pp ppts Net in
Slide 4: 4th Quarter Gross Dollar Volume (GDV)
4th Quarter Gross Dollar Volume (GDV) ( ) ($ in billions) Worldwide 16.3% Growth $1 000 $1,000 $900 $863 Rest of World $800 $752 18.4% Growth $700 $315 $600 $264 $581 United States $500 $500 12.1% Growth $176 $400 $147 $300 $252 $282 $549 $487 $200 $117 $139 $ $405 $353 $100 $134 $143 $0 4Q Q 10 4Q
Slide 5: 4th Quarter Processed Transactions and Cards
4th Quarter Processed Transactions and Cards Processed Transactions Cards 23 2% Growth 23.2% 11 3% Growth 11.3% 8,000 2,000 1,811 7,000 1,628 1,600 , Transactionss (in millions)) 6,000 752 Cards (in millions) 5,000 655 1,200 4 000 4,000 7 677 7,677 6,233 800 3,000 2,000 972 1,059 T 400 1,000 0 0 4Q
Slide 6: 4th Quarter Revenue
4th Q Quarter Revenue ($ in millions) • Net Revenue increased 20.2%;; or 20.8% on a 4Q 10 4Q 11 $2,000 $1,728 constant currency basis $1,600 $1,438 $1,200 $733 $871 • Domestic Assessments $606 $682 $800 $472 $540 up 18.7% $221 $ $281 $400 $0 • Cross-Border Volume Fees -$400 up 14.5% -$800 ng nts me
Slide 7: 4th Quarter Operating Expenses
4th Q Quarter Operating p g Expenses p ($ in millions) 4Q 10 4Q 11 • Total Operating Expenses $968 $1,000 increased 11.5%* $869 $800 $597 • General & Administrative $600 $522 up 14.3% $400 $305 $319 $200 • Advertising & Marketing $42 $52 up 4.8% $0 General & Advertising & Depreciation & Total Operat
Slide 8: 4th Quarter Cash Flow Statement and Balance Sheet Highlights
4th Quarter Cash Flow Statement and B l Balance Sheet Sh t Hi Highlights hli ht • Cash C h fl flow from f operations i off $784 million illi ini 4Q11 • Cash, cash equivalents and other liquid investments of $4.9 billion at December 31, 2011 • Share Repurchase p Activityy o 4Q11: 84,300 shares (cost
Slide 9: Looking Ahead
Looking Ahead • Business update through January 28 • Updated 2011-2013 performance objectives – For the period 2012-2013 (on a constant currency basis): – Net revenue growth: 12-14% CAGR – Operating Margin: Minimum 50% annually – EPS growth: 20%+ CAGR • Thoughts for 2012 9
Slide 10: MasterCard Worldwide: The Heart of Commerce
MasterCard Worldwide The Heart of Commerce”
Slide 11: GAAP Reconciliation
Appendix A GAAP Reconciliation ($ in millions, millions except per share data) Three Months Ended Three Months Ended December 31, 2011 December 31, 2010 Actual Special Item Non ‐GAAP Actual Provision for litigation settlement $ 770 $ (770) a $ ‐ $ ‐ Total operating expenses 1,738 (770) 968 869 Opera
Slide 12: GAAP Reconciliation (cont.)
Appendix A (cont.) GAAP Reconciliation ($ in millions, millions except per share data) For the Year Ended For the Year Ended December 31, 2011 December 31, 2010 Actual Special Item Non ‐GAAP Actual Provision for litigation settlement $ 770 $ (770) a $ ‐ $ ‐ Total operating expenses 4,001 (770) 3,231
Slide 13: 4th Quarter G&A Detail
Appendix B 4th Quarter G&A Detail ($ in millions) Dollar Percent Three Months Ended Increase Increase December 31 (Decrease) (Decrease) 2011 vs. 2011 vs. 2011 2010 2010 2010 Personnel $ 402 $ 328 $ 74 22.7 Professional fees 72 72 ‐ 0.4 Telecommunications 18 14 4 32 2 32.2 Data processing 26 24 2 7.6