Slide 1: Fourth-Quarter and Full-Year 2008 Financial Results Conference Call
Exhibit 99.2 MasterCard Incorporated Fourth-Quarter and Full-Year 2008 Financial Results Conference Call February 5, 2009
Slide 2: Business Update
Business Update • Economic Overview • Business Overview • Capital Structure 2
Slide 3: 4th Quarter Selected Financial Performance
4th Quarter Selected Financial Performance ($ in millions, except percentages and per share data) 4Q 2008 4Q 2007 YOY 4Q 2008 adjusted for adjusted for adjusted Actual special items* special items* Growth % Net revenue $ 1,225 $ 1,225 $ 1,073 14.2 Total operating expenses 762 756 901 (16.0) Operatin
Slide 4: MasterCard Branded Volume (GDV) 4th Quarter 2008
MasterCard Branded Volume (GDV) 4th Quarter 2008 YOY Growth Rate % GDV U.S. Local ($ billions) Dollar Currency Asia Pacific 91 3.8 14.6 Canada 23 -15.1 5.3 Europe 176 -7.1 8.3 Latin America 44 - 6.0 11.4 South Asia/Middle East/Africa (SAMEA) 14 9.3 30.6 United States 256 -5.2 - 5.2 Worldwide 605 - 4
Slide 5: 4th Quarter Revenue - Operations Fees
4th Quarter Revenue - Operations Fees ($ in millions) $1,050 $966 100% • Net operations fees increased $829 16.5%, or $137, to $966 $900 97% • Gross operations fees increased $750 13.2%, or $122, to $1,046. Key 94% drivers included: $600 – Pricing changes $450 91% – Processed transactions $300 growt
Slide 6: 4th Quarter Revenue - Assessments
4th Quarter Revenue - Assessments ($ in millions) • Net assessments increased $300 $259 80% 6.1%, or $15, to $259 $244 $250 70% $200 60% • Gross assessments increased $150 50% 6.3%, or $36, to $604 • Net assessments as a % of $100 40% gross assessments was $50 30% essentially flat $0 20% 4Q07 4Q08 N
Slide 7: 4th Quarter Operating Expenses
4th Quarter Operating Expenses ($ in Millions) $496 $500 $479 Excluding special items *: • Total operating expenses decreased 16.0%, or $145, to $756 $400 $369 • G&A decreased 3.4%, or $17, to $300 $479 primarily due to: $248 – cost-reduction initiatives to $200 reduce travel, personnel and professi
Slide 8: Full-Year 2008 Highlights
Full-Year 2008 Highlights • Delivered full-year net income of $1.2 billion and earnings per share of $9.45, on a diluted basis, of which $0.42 represented gains from the sale of Redecard securities* • Achieved full-year net revenue of $5.0 billion, representing growth of 22.7% primarily due to: – Gr
Slide 9: Cash Flow Statement and Balance Sheet Highlights
Cash Flow Statement and Balance Sheet Highlights • Generated $413 million in cash flow from operations for the year ended December 31, 2008 • Cash, cash equivalents and current available-for-sale securities of $2.1 billion at December 31, 2008 • Litigation settlement impact: – Decreased Stockholders
Slide 10: 2009 Outlook
2009 Outlook • Thoughts for 2009 – Net revenue growth will likely be lower than longer-term objective range – Operating expenses will be essentially flat over 2008 levels • Assumptions: – Constant foreign exchange – Effective Tax Rate = 35% – Continue to monitor global economic and financial environ
Slide 11: MasterCard Worldwide
MasterCard Worldwide The Heart of Commerce”
Slide 12: Appendix A: GAAP Reconciliation
Appendix A: GAAP Reconciliation ($ million except percentages) For the three months ended 12/31/08 For the three months ended 12/31/07 YOY Growth Special As Special As Actual Items Adjusted Actual Items Adjusted As Adjusted Revenues, net $ 1,225 $ - $ 1,225 $1,073 - $1,073 14.2% Operating Expenses G
Slide 13: Appendix A (cont.): GAAP Reconciliation
Appendix A (cont.): GAAP Reconciliation ($ million except percentages) For the year ended 12/31/08 For the year ended 12/31/07 YOY Growth Special As Special As Actual Items Adjusted Actual Items Adjusted As Adjusted Revenues, net $ 4,992 $ - $ 4,992 $4,068 - $4,068 22.7% Operating Expenses General a
Slide 14: Appendix B: 4th Quarter Operations Fees Detail
Appendix B: 4th Quarter Operations Fees Detail Dollar Percent For the three months ended Increase Increase ($ million except percentages) December 31, (Decrease) (Decrease) 2008 vs. 2008 vs. 2008 2007 2007 2007 Authorization, settlement and switch $430 $382 48 12.6 Currency conversion and cross-bord
Slide 15: Appendix C: 4th Quarter G&A Detail
Appendix C: 4th Quarter G&A Detail Dollar Percent For the three months ended Increase Increase ($ million except percentages) December 31, (Decrease) (Decrease) 2008 vs. 2008 vs. 2008 2007 2007 2007 Personnel $322 $333 (11) (3.3) Professional fees 50 63 (13) (20.6) Telecommunications 19 18 1 5.6 Dat