Mastercard Incorporated · NYSE:MA
Mastercard — Goldman Sachs US Financial Services Conference 2009
17 slides from Mastercard's conference presentation, Dec 8, 2009
Slide 1: Credit: Back to Basics
Tim Murphy Group Executive, Core Products December 8, 2009 Credit: Back to Basics Goldman Sachs Investor Conference New York City
Slide 2: The reports of my death have been greatly exaggerated
“The reports of my death have been greatly exaggerated.” Mark Twain December 8, 2009 2
Slide 3: Forward-Looking Statements
Forward-Looking Statements Today’s presentations may contain, in addition to historical information, forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements are based on our current assumptions, expectations and projecti
Slide 4: Positive Indications: Continued Positive Retail Sales Growth
Positive Indications Continued Positive Retail Sales Growth Retails sales (ex. Autos & Gas) increased 0.2% versus November 2008, signaling the third consecutive month of growth since July 2008 Source: MasterCard SpendingPulse, November 2009 December 8, 2009 4
Slide 5: Significant Changes in Consumer Attitudes
Significant Changes in Consumer Attitudes Focusing on quality & value Showing new resourcefulness in spending Demanding control over finances Embracing frugality December 8, 2009 5
Slide 6: MasterCard U.S. Debit & Credit GDV and Transaction Growth
MasterCard U.S. Debit & Credit GDV and Transaction Growth 20% 15% Debit Trx 10% 5% Debit GDV 0% -5% -10% Credit Trx Credit GDV -15% -20% Q3 Q4 Q1 Q2 Q3 2008 2009 December 8, 2009 6
Slide 7: The Shift to Debit Cards is Not Affecting Credit in the U.S.
The Shift to Debit Cards is Not Affecting Credit in the U.S. Debit Credit Cards Cards Cash Checks Supermarket / grocery 9% 30% 7% 53% +18% 0% -14% -5% store purchases Department 48% +18% 17% -1% 29% -14% 5% -3% store purchases Dining out in a 46% 17% 34% 2% +16% 0% -15% -1% sit-down restaurant Gasol
Slide 8: Consumer Credit is Retrenching, Not Retracting
Consumer Credit is Retrenching, Not Retracting Consumer credit spending is down 2008 to 2009 However, individual credit Fewer, but accounts are making more purchases better performing credit accounts At the same time, consumer attitudes are shifting toward more traditional credit roots December 8, 2
Slide 9: Meeting Consumer Needs Along the Credit Spectrum
Meeting Consumer Needs Along the Credit Spectrum MasterCard offers a compelling set of products and solutions for every type of consumer across the credit payments spectrum. Emerging Core High-End Users Users Users Value-Added Services December 8, 2009 9
Slide 10: Emerging Users: Prepaid Starts the Relationship
Emerging Users: Prepaid Starts the Relationship The Univision Making prepaid Prepaid MasterCard a relationship versus a • Hispanics represent fastest growing segment in the transactional U.S. in terms of purchasing power account • Univision and MasterCard prepaid card offers a culturally relevant, s
Slide 11: Emerging Users: Building a Road to Credit
Emerging Users: Building a Road to Credit Partner with financial Build distribution through merchants and payroll direct deposit institutions to develop reloadable prepaid Provides a bridge to mainstream banking products card programs that transition emerging Fills a major need/desire for unbanked a
Slide 12: Core Users: Evolving Needs for Changing Times
Core Users: Evolving Needs for Changing Times Core Users are looking for... Control with spending control options like MasterCard inControl Flexibility through tools that give consumers the ability to maximize the utility of their credit Choice of differentiated cardholder benefits that are tailored
Slide 13: Core Users: A Significant Opportunity
Core Users: A Significant Opportunity The Sweet Supply Issues Demand Issues Spot Core Credit Consumers who wish to borrow, Consumers to whom banks are but to whom banks will not lend. willing to lend, but who do not wish to borrow. December 8, 2009 13
Slide 14: High-End Users: Affluent Consumer Credit
High-End Users: Affluent Consumer Credit Our affluent strategy is to build flexible solutions that drive true business value to our financial institution customers. Differentiated and innovative products and tools Consistent cardholder experiences Leveraging the Usage and preference equity in Pricel
Slide 15: High-End Users: Meeting the Unique Needs of the Affluent
High-End Users: Meeting the Unique Needs of the Affluent Airlines Wealth Management U.S. Airways Dividend Miles Ameriprise World Elite MasterCard Card MasterCard Card • Brand conversion • Unique value proposition for • Airline co-brand with premium affluent clients travel rewards • Best-in-class pro
Slide 16: Opportunities Abound
Opportunities Abound Credit Stronghold Markets Developing and Emerging Markets • High acceptance rates • Aggressive acceptance growth • Wide range of products • Few products in-market • High card penetration • Low card penetration • Slower growth potential • High growth potential • Consolidation • L
Slide 17: In Summary
In Summary Credit is alive and well… Opportunities exist along the credit payments spectrum December 8, 2009 17
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