Visa Inc. · NYSE:V
Visa — Q4 2015 Earnings Presentation
16 slides from Visa's earnings presentation, Nov 2, 2015
Slide 1: Visa Inc. Fiscal Fourth Quarter 2015 Financial Results
Visa Inc. Fiscal Fourth Quarter 2015 Financial Results November 2, 2015
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 "estimates," "expectation,“ “outlook,” "will," "continued" and other
Slide 3: Solid Fiscal Fourth Quarter Results
Solid Fiscal Fourth Quarter Results Solid operating revenues of $3.6 billion, up 11% over prior year Quarterly net income of $1.5 billion and diluted earnings per share of $0.62 reflecting: • 41% and 44% increase, respectively, over prior year • 12% and 14% increase, respectively, over prior year’s
Slide 4: Payments Volume
Payments Volume US$ in billions, nominal, except percentages Quarter ended June 2014 2015 1,253 1,191 INTL = International U.S. U.S. 792 628 683 744 U.S. U.S. 303 339 447 461 INTL INTL U.S. U.S. INTL INTL 563 570 324 344 440 453 INTL 123 INTL 117 Total Visa Inc. Credit Debit YOY Change 3% (nominal)
Slide 5: Payments Volume
Payments Volume US$ in billions, nominal, except percentages Quarter ended September 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
Slide 6: Transactions
Transactions in millions, except percentages Quarter ended September 2014 27,948 2015 25,090 38% 38% Credit Credit 18,365 Credit Credit 16,991 38% 38% 62% 62% Debit Debit Debit 62% Total Transactions Processed Transactions YOY Change 11% 8% Note: Total transactions represent payments and cash transa
Slide 7: Total Cards
Total Cards in millions, except percentages Quarter ended June 2014 2015 2,442 2,300 1,565 1,468 832 876 Visa Inc. Credit Debit YOY Change 6% 5% 7% Note: The data presented is based on results reported quarterly by Visa clients on their operating certificates. Estimates may be utilized if data is un
Slide 8: Revenue – Q4 2015
Revenue – Q4 2015 US$ in millions, except percentages Fiscal 2014 Fiscal 2015 4,373 3,997 3,571 3,229 (768) (802) Gross Revenues Client Net Operating Incentives Revenues YOY Change 9% 5% 11% Fiscal 2015 % of Gross Revenues 18% 82% Note: Figures may not recalculate exactly due to rounding. Percentage
Slide 9: Revenue Detail – Q4 2015
Revenue Detail – Q4 2015 US$ in millions, except percentages Fiscal 2014 Fiscal 2015 1,637 1,499 1,429 1,348 1,091 938 212 216 Service Revenues Data Processing International Other Revenues Revenues Transaction Revenues YOY Change 9% 6% 16% 3% Note: Figures may not recalculate exactly due to rounding
Slide 10: Adjusted Operating Margin – Q4 2015
Adjusted Operating Margin – Q4 2015 US$ in millions, except percentages Fiscal 2014 Fiscal 2015 3,571 3,229 62% 64% 2,283 2,002 1,227 1,288 Net Operating Total Operating Operating Operating Revenues Expenses Income Margin YOY Change 11% 5% 14% 2 ppt Note: Operating margin is calculated as operating
Slide 11: Adjusted Operating Expenses – Q4 2015
Adjusted Operating Expenses – Q4 2015 US$ in millions, except percentages Fiscal 2014 Fiscal 2015 521 496 241 253 153 143 128 134 112 119 94 107 3 11 Personnel Marketing Network & Professional Depreciation & General & Litigation Provision Processing Fees Amortization Administrative YOY Change 5% 5%
Slide 12: Other Financial Results
Other Financial Results • Cash, cash equivalents and available-for-sale investment securities of $9.3 billion at the end of the fiscal fourth quarter • Free cash flow of $1.6 billion for the fiscal fourth quarter • Capital expenditures of $138 million during the fiscal fourth quarter 12 Fiscal Fourt
Slide 13: Financial Metrics for Fiscal Year 2016
Financial Metrics for Fiscal Year 2016 • Constant dollar revenue growth of high single-digit Annual net revenue growth to low double-digit range • Negative 3 ppts foreign currency impact Client incentives as % of gross revenues • 17.5% - 18.5% range Annual operating margin • Mid 60s Tax rate • Low 3
Slide 14: Appendix
Appendix
Slide 15: Reconciliation of Non-GAAP Financial Results
Reconciliation of Non-GAAP Financial Results US$ in millions, except percentages and per share data Our financial results for fiscal 2015 and 2014 reflect the impact of significant items that we believe are not indicative of our operating performance in the prior or future years, as they either have
Slide 16: Calculation of Free Cash Flow
Calculation of Free Cash Flow US$ in millions Additions (+) / Reductions (-) to Three Months Ended Twelve Months Ended Net income September 30, 2015 September 30, 2015 Net income (as reported) 1,512 6,328 Capital Assets + Depreciation and amortization 119 494 - Capital expenditures (138) (414) (19)