Slide 1: Third-Quarter 2019 Financial Results Conference Call
Mastercard Incorporated Third-Quarter 2019 Financial Results Conference Call October 29, 2019
Slide 2: Business Update, Financial Overview, Economics Update, Business Highlights
Business Update Financial Overview Economics Update Business Highlights ©2019 Mastercard October 29, 2019 2
Slide 3: 3rd Quarter Selected Financial Performance
3rd Quarter Selected Financial Performance ($ in millions, except per share data) YOY Growth 3Q 19 3Q 18 Currency Non-GAAP Non-GAAP As adjusted Neutral Net revenue $ 4,467 $ 3,898 15% 16% Adjusted operating expenses 1,812 1,582 15% 16% Adjusted operating income 2,655 2,316 15% 17% Adjusted operating
Slide 4: Gross Dollar Volume (GDV)
3rd Quarter Gross Dollar Volume (GDV) ($ in billions) Worldwide United States Rest of World 14% Growth 12% Growth 16% Growth $1,800 $1,652 $1,470 $1,600 $1,400 $1,158 $1,200 $830 $1,028 $722 $1,000 $800 $581 $494 $493 $600 $442 $400 $748 $822 $249 $229 $535 $577 $200 $245 $213 $0 3Q18 3Q19 3Q18 3Q19
Slide 5: Switched Transactions and Cards
3rd Quarter Switched Transactions and Cards Switched Transactions Cards 20% Growth* 6% Growth 4,000 30 Transactions (in billions) Cards (in millions) 22.9 3,000 2,589 2,442 20 18.8 443 509 2,000 10 2,145 1,000 1,933 0 0 3Q18 3Q19 3Q18 3Q19 ©2019 Mastercard Mastercard Cards Maestro Cards Notes: Figur
Slide 6: Revenue
3rd Quarter Revenue ($ in millions) 3Q18 3Q19 $5,000 $4,467 $3,898 $4,000 $3,000 $1,564 $1,722 $1,912 $2,231 $2,000 $1,338 $1,517 $1,087 $819 $1,000 $0 -$1,000 -$2,000 $(1,735)$(2,090) -$3,000 Domestic Cross-Border Transaction Other Rebates and Growth Assessments Volume Fees Processing Fees Revenues
Slide 7: Adjusted Operating Expenses
3rd Quarter Adjusted Operating Expenses ($ in millions) 3Q18 3Q19 $2,500 $2,000 1 $1,812 $1,582 $1,448 $1,500 $1,268 $1,000 $500 $203 $227 $111 $137 $0 1 Growth General & Administrative Advertising & Marketing Depreciation & Amortization Adjusted Operating Expenses Non-GAAP 14% 12% 24% 15% Currency-
Slide 8: Looking Ahead
Looking Ahead Business update through October 21st Thoughts for 2019 ©2019 Mastercard October 29, 2019 8
Slide 9: Appendices
Appendices
Slide 10: Appendix A: Non-GAAP Reconciliation
Appendix A Non-GAAP Reconciliation ($ in millions, except per share data) Three Months Ended September 30, 2019 Operating Operating Operating Other Income Effective income Diluted earnings expenses income margin (Expense) tax rate Net income per share ($ in millions, except per share data) Reported
Slide 11: Appendix A: Non-GAAP Reconciliation
Appendix A Non-GAAP Reconciliation Three Months Ended September 30, 2019 as compared to the Three Months Ended September 30, 2018 Increase/(Decrease) Diluted Operating Operating Operating Effective income earnings per Net revenue expenses income margin tax rate Net income share Reported - GAAP 15% 1
Slide 12: Appendix B: Non-GAAP Reconciliation, 2019 full-year financial outlook
Appendix B Non-GAAP Reconciliation 2019 full-year financial outlook 2019 vs. 2018 Increase/(Decrease) Net Revenue Operating Expenses High end of Forecasted Growth - U.S. GAAP 1 (Mid single-digits) low double-digits Litigation provisions 2 ** 16% Foreign currency 3 3% 2% Acquisitions 4 0 - (1)% (3)%
Slide 13: Appendix C: Non-GAAP Reconciliation, fourth quarter 2019 outlook
Appendix C Non-GAAP Reconciliation Fourth quarter 2019 financial outlook Q4'19 vs. Q4'18 Increase/(Decrease) Operating Expenses Forecasted Growth - U.S. GAAP 1 (Low 20's) Litigation provisions 2 33% Foreign currency 3 1% Acquisitions 4 (6)% Non-GAAP Growth, excluding acquisitions High single-digits