Visa Inc. · NYSE:V
Visa — Q1 2014 Earnings Presentation
15 slides from Visa's earnings presentation, Jan 30, 2014
Slide 1: Visa Inc. Fiscal First Quarter 2014 Financial Results
Visa Inc. Fiscal First Quarter 2014 Financial Results January 30, 2014
Slide 2: Forward-Looking Statements
Forward-Looking Statements This presentation contains forward-looking statements within the meaning of the U.S. Private Securities Litigation Reform Act of 1995. Forward-looking statements generally are identified by words such as "believes," "estimates," "expects," "intends," "may," "projects," "co
Slide 3: Solid Fiscal First Quarter Results
Solid Fiscal First Quarter Results Strong operating revenues of $3.2 billion, up 11% over prior year Quarterly net income of $1.4 billion and diluted earnings per share of $2.20, up 9% and 14%, respectively, over prior year Repurchased 5.5 million shares of class A common stock in the open market at
Slide 4: Payments Volume
Payments Volume US$ in billions, nominal, except percentages Quarter ended September 2012 2013 1,104 INTL = International 1,007 U.S. U.S. 522 575 697 643 U.S. U.S. 250 277 407 365 INTL INTL INTL INTL U.S. U.S. 486 529 393 420 272 298 INTL 93 INTL 109 Total Visa Inc. Credit Debit YOY Change (nominal)
Slide 5: Payments Volume
Payments Volume US$ in billions, nominal, except percentages Quarter ended December Note: Current quarter payments volume and other select metrics are provided in the operational performance data supplement in the Press Release to provide more recent operating data. Service revenues continue to be r
Slide 6: Transactions
Transactions in millions, except percentages Quarter ended December 2012 2013 23,597 21,557 Credit Credit 38% 38% 15,985 14,159 Debit Debit 62% 62% Total Transactions Processed Transactions YOY 9% 13% Change Note: Processed transactions represent transactions involving Visa, Visa Electron, Interlink
Slide 7: Total Cards
Total Cards in millions, except percentages Quarter ended September 2012 2013 2,188 2,067 1,377 1,278 789 811 Visa Inc. Credit Debit YOY Change 6% 3% 8% Note: The data presented is based on results reported quarterly by Visa clients on their operating certificates. Estimates may be utilized if data
Slide 8: Revenue – Q1 2014
Revenue – Q1 2014 US$ in millions, except percentages Fiscal 2013 Fiscal 2014 3,754 3,399 3,155 2,846 (553) (599) Gross Revenues Client Net Operating Incentives Revenues YOY Change 10% 8% 11% Fiscal 2014 % of Gross Revenues 16% 84% Note: Figures may not recalculate exactly due to rounding. Percentag
Slide 9: Revenue Detail – Q1 2014
Revenue Detail – Q1 2014 US$ in millions, except percentages Fiscal 2013 Fiscal 2014 1,419 1,300 1,264 1,115 891 805 179 180 Service Revenues Data Processing International Other Revenues Revenues Transaction Revenues YOY Change 9% 13% 11% 0% Note: Figures may not recalculate exactly due to rounding.
Slide 10: Operating Margin – Q1 2014
Operating Margin– Q1 2014 US$ in millions, except percentages Fiscal 2013 Fiscal 2014 3,155 2,846 66% 2,077 63% 1,800 1,046 1,078 Net Operating Total Operating Operating Operating Revenues Expenses Income Margin YOY Change 11% 3% 15% 3 ppts Note: Operating margin is calculated as operating income di
Slide 11: Operating Expense – Q1 2014
Operating Expense – Q1 2014 US$ in millions, except percentages Fiscal 2013 Fiscal 2014 470 454 193 186 132 110 107 106 108 88 75 92 3 0 Personnel Marketing Network & Professional Depreciation & General & Litigation Processing Fees Amortization Administrative Provision YOY Change 4% (4%) 20% (15%) 1
Slide 12: Other Financial Results
Other Financial Results • Cash, cash equivalents and available-for-sale investment securities of $7.0 billion at the end of the fiscal first quarter • Free cash flow of $1.6 billion for the fiscal first quarter • Capital expenditures of $120 million during the fiscal first quarter 12 Fiscal First Qu
Slide 13: Financial Metrics for Fiscal Year 2014
Financial Metrics for Fiscal Year 2014 Annual net revenue • Low double-digits on a constant dollar basis growth • Negative 2 ppts foreign currency impact Client incentives as % of • 16.5% to 17.5% range gross revenues Annual operating • Low 60s margin Annual diluted class A common stock earnings • M
Slide 14: Appendix
Appendix
Slide 15: Calculation of Free Cash Flow
Calculation of Free Cash Flow US$ in millions Additions (+) / Reductions (-) to Three Months Ended Net income December 31, 2013 Net income (as reported) 1,407 Capital Assets + Depreciation and amortization 107 - Capital expenditures (120) (13) Litigation + Litigation provision - - Settlement payment