Slide 1: Visa Inc. Fiscal Fourth Quarter and Full-Year 2008 Financial Results
Exhibit 99.2 Visa Inc. Fiscal Fourth Quarter and Full-Year 2008 Financial Results October 29, 2008
Slide 2: Safe Harbor Reminder
Safe Harbor Reminder • The following materials and management’s discussion of them may contain “forward- looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These statements can be identi
Slide 3: Solid Fiscal Fourth Quarter and Full-Year Results
Solid Fiscal Fourth Quarter and Full-Year Results • Adjusted quarterly and annual net income of $448 million and $1.7 billion or adjusted diluted earnings of $0.58 and $2.25 per share • Strong operating revenues of $1.7 billion for the fourth quarter and $6.3 billion for the full-year, up 17% and 21
Slide 4: Payments Volume – Q4 2008
Payments Volume – Q4 2008 US$ in billions, nominal Quarter ended June 2007 $699 2008 $606 U.S. U.S. $450 $423 $385 $396 U.S. U.S. $213 ROW $203 $248 $210 ROW $276 ROW U.S. ROW U.S. $221 $238 $210 $194 $183 ROW $27 ROW $38 Total Visa Inc. Credit Debit YOY Growth 15% 14% 18% Note: Figures may not sum
Slide 5: Payments Volume – Fiscal Year 2008
Payments Volume – Fiscal Year 2008 US$ in billions, nominal Twelve Months ended June 2007 $2,654 2008 $2,266 U.S. $1,736 U.S. $1,611 $1,491 $1,449 U.S. U.S. $832 ROW $771 $918 $775 ROW $1,043 ROW U.S. ROW U.S. $817 $780 $719 $904 $678 ROW $98 ROW $138 Total Visa Inc. Credit Debit YOY Growth 17% 16%
Slide 6: Payments Volume – Q4 2008
Payments Volume – Q4 2008 US$ in billions, nominal Quarter ended June 2007 $423 2008 $385 $162 $132 $50 $40 $45 $35 $14 $19 United States Asia Pacific (AP) Latin America and Canada Central and Caribbean (LAC) Eastern Europe, Middle East and Africa (CEMEA) YOY Growth 10% 22% 40% 14% 38% Note: Growth
Slide 7: Payments Volume – Fiscal Year 2008
Payments Volume – Fiscal Year 2008 US$ in billions, nominal Twelve Months ended June 2007 $1,611 2008 $1,449 $620 $500 $127 $181 $140 $173 $49 $69 United States Asia Pacific (AP) Latin America and Canada Central and Caribbean (LAC) Eastern Europe, Middle East and Africa (CEMEA) YOY Growth 11% 24% 43
Slide 8: Transactions – Q4 2008
Transactions – Q4 2008 in millions Quarter ended June Quarter ended September 14,124 2007 12,383 2008 Credit 39% 9,473 9,590 8,411 8,645 Debit 61% Total Transactions Processed Transactions Processed Transactions YOY Growth 14% 13% 11% Note: Processed transactions represent transactions involving Vis
Slide 9: Transactions – Fiscal Year 2008
Transactions – Fiscal Year 2008 in millions Twelve Months Ended June Twelve Months ended 53,684 September 2007 46,893 2008 Credit 40% 36,012 36,957 31,796 32,720 Debit 60% Total Transactions Processed Transactions Processed Transactions YOY Growth 14% 13% 13% Note: Processed transactions represent t
Slide 10: Total Cards
Total Cards in millions Quarter ended June 1,645 2007 1,464 2008 798 847 739 725 Credit Debit Visa Inc. YOY Growth 8% 17% 12% Fiscal Q4 2008 Earnings Results 10
Slide 11: Revenue Detail – Q4 2008
Revenue Detail – Q4 2008 US$ in millions Q4 FY 2007 Pro Forma Q4 FY 2008 Actual $2,008 $1,680 $1,709 $1,464 Gross Net Operating Revenues ($216) Revenues ($299) Incentives YOY Growth 20% 38% 17% Fiscal Q4 2008 Earnings Results 11
Slide 12: Revenue Detail – Fiscal Year 2008
Revenue Detail – Fiscal Year 2008 US$ in millions FY 2007 Pro Forma FY 2008 Actual $7,424 $6,263 $5,907 $5,193 Gross Net Operating Revenues ($714) Revenues ($1,161) Incentives YOY Growth 26% 63% 21% Fiscal Q4 2008 Earnings Results 12
Slide 13: Revenue Detail – Q4 2008
Revenue Detail – Q4 2008 US$ in millions Q4 FY 2007 Pro Forma Q4 FY 2008 Actual $788 $730 $548 $512 $463 $354 $160 $133 Data International Other Service Fees Processing Transaction Revenue Fees Fees YOY Growth 8% 18% 45% 20% Fiscal Q4 2008 Earnings Results 13
Slide 14: Revenue Detail – Fiscal Year 2008
Revenue Detail – Fiscal Year 2008 US$ in millions FY 2007 Pro Forma FY 2008 Actual $3,061 $2,582 $2,073 $1,659 $1,721 $1,193 $569 $473 Service Fees Data International Other Processing Transaction Revenue Fees Fees YOY Growth 19% 25% 44% 20% Fiscal Q4 2008 Earnings Results 14
Slide 15: Adjusted Operating Margin – Q4 2008
Adjusted Operating Margin – Q4 2008 US$ in millions Q4 FY 2007 Pro Forma Q4 FY 2008 Actual $1,709 45% $1,464 $1,172 $943 $766 20% $292 Operating Margin Net Operating Total Operating Operating Income Revenues Expenses YOY Growth 25 ppts 17% (20%) 162% Fiscal Q4 2008 Earnings Results 15
Slide 16: Adjusted Operating Margin – Fiscal Year 2008
Adjusted Operating Margin – Fiscal Year 2008 US$ in millions FY 2007 Pro Forma FY 2008 Actual 46% $6,263 $5,193 $3,520 $3,366 32% $2,897 $1,673 Operating Margin Net Operating Total Operating Operating Income Revenues Expenses YOY Growth 14 ppts 21% (4%) 73% Fiscal Q4 2008 Earnings Results 16
Slide 17: Adjusted Operating Expenses – Q4 2008
Adjusted Operating Expenses – Q4 2008 US$ in millions Q4 FY 2007 Pro Forma $1,172 Q4 FY 2008 Actual $943 $444 $311 $320 $253 $124 $135 $100 $84 $93 $94 $47 $42 $62 $6 Personnel Network, Advertising, Professional Depreciation Administrative Litigation Total Operating EDP & Marketing & and and and Oth
Slide 18: Adjusted Operating Expenses – Fiscal Year 2008
Adjusted Operating Expenses – Fiscal Year 2008 US$ in millions FY 2007 Pro Forma $3,520 $3,366 FY 2008 Actual $1,146 $1,078 $1,075 $1,016 $338 $425 $424 $329 $328 $308 $160 $169 $77 $13 Personnel Network, Advertising, Professional Depreciation Administrative Litigation Total Operating EDP & Marketin
Slide 19: Other Financial Results
Other Financial Results • Capital expenditures during the fiscal fourth quarter and full-year 2008 were $92 million and $415 million, respectively • Cash, cash equivalents, restricted cash and investment securities available-for-sale of $7.5 billion at the end of the fiscal full-year – $1.9 billion
Slide 20: Financial Metrics through Fiscal Year 2010
Financial Metrics through Fiscal Year 2010 Annual net revenue growth 11-15% Mid-to-High Annual adjusted operating margin 40% range Annual adjusted diluted class A common 20% + earnings per share growth Annual free cash flow $1 billion + FY 2009: $300-350 M Capital Expenditures FY 2010: 3 to 4% gross
Slide 21: Appendix – Reconciliation of Non-GAAP Measures
Appendix – Reconciliation of Non-GAAP Measures
Slide 22: Pro Forma Quarterly Results of Operations
Pro Forma Quarterly Results of Operations US$ in millions Pro Forma Fiscal 2007 Quarter Ended (1) December 31, March 31, June 30, September 30, Pro Forma 2006 2007 2007 (2) 2007 (2) Fiscal 2007 (1) (2) Operating Revenues Service fees $ 577 $ 614 $ 661 $ 730 $ 2,582 Data processing fees 377 370 449 4
Slide 23: Adjusted Operating Income and Net Income
Adjusted Operating Income and Net Income US$ in millions For the Three Months For the Twelve Months Pro Forma For the Three Pro Forma For the Twelve Ended Ended Months ended Months ended September 30, 2008 September 30, 2008 September 30, 2007 September 30, 2007 Net (loss) income (as reported) $ (35
Slide 24: Reconciliation of Non-GAAP Adjusted Operating Expenses
Reconciliation of Non-GAAP Adjusted Operating Expenses US$ in millions For the Three Months Pro Forma For the Three Months Ended September 30, 2008 Ended September 30, 2007 Actual Adjustments As Adjusted Actual Adjustments As Adjusted Personnel $ 317 $ (64) (2) $ 253 $ 324 $ (13) (2) $ 311 Network,
Slide 25: Reconciliation of Non-GAAP Adjusted Non-operating Income
Reconciliation of Non-GAAP Adjusted Non-operating Income US$ in millions For the Three Months Pro Forma For the Three Months Ended September 30, 2008 Ended September 30, 2007 Actual Adjustments As Adjusted Actual Adjustments As Adjusted Equity in earnings of unconsolidated affiliates $ - - $ - $ - -
Slide 26: Weighted Avg. Class A Common Stock Outstanding
Weighted Avg. Class A Common Stock Outstanding Used in the Calculation of Adjusted Diluted EPS US$ in millions For the Three For the Twelve Months Ended Months Ended September 30, 2008 September 30, 2008 Weighted Average Shares Outstanding - GAAP 774 769 Class A Shares (1) - 206 Class B Shares (2) -
Slide 27: Class A Common Stock: Adjusted Diluted Earnings per Share
Class A Common Stock Adjusted Diluted Earnings per Share • Management believes the presentation of adjusted operating income and adjusted net income provides a clearer understanding of the one-time items related to the Company's reorganization, initial public offering and other non-recurring events.
Slide 28: Calculation of Free Cash Flow
Calculation of Free Cash Flow US$ in millions For the Twelve Months Ended September 30, 2008 Net income (as reported) $ 804 Addback: Depreciation and amortization 237 Equity compensation 74 Cash impact of litigation (1) 1,193 Less: Capital expenditure (415) Annual pension contribution (186) Total fr