Visa Inc. · NYSE:V
Visa — Q3 2016 Earnings Presentation
17 slides from Visa's earnings presentation, Jul 21, 2016
Slide 1: Fiscal Third Quarter 2016 Financial Results
Visa Inc. Fiscal Third Quarter 2016 Financial Results July 21, 2016
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," “believe,“ “outlook,” "will," "continue" and other simil
Slide 3: Solid Fiscal Third Quarter Results
Solid Fiscal Third Quarter Results Net operating revenues of $3.6 billion, up 3% over prior year GAAP quarterly net income of $412 million and $0.17 diluted earnings per share Adjusted quarterly net income of $1.6 billion and $0.69 diluted earnings per share Repurchased 21.7 million shares of class
Slide 4: Payments Volume
Payments Volume US$ in billions, nominal, except percentages Quarter ended March 2015 2016 1,253 1,168 INTL = International U.S. U.S. 780 628 695 731 U.S. U.S. 302 335 437 473 INTL INTL U.S. U.S. INTL INTL 360 540 558 325 429 445 INTL 111 INTL 113 Total Visa Inc. Credit Debit YOY Change 8% (nominal)
Slide 5: Payments Volume
Payments Volume US$ in billions, nominal, except percentages Quarter ended June Note: We did not include Visa Europe’s payments volume from the acquisition date, June 21, 2016, through June 30, 2016 as the impact is immaterial. Current quarter payments volume and other select metrics are provided in
Slide 6: Transactions
Transactions in millions, except percentages Quarter ended June 2015 2016 30,157 26,954 38% 38% Credit Credit Credit Credit 19,778 18,024 38% 38% 62% 62% Debit Debit Debit 62% Total Transactions Processed Transactions YOY Change 12% 10% Note: We did not include Visa Europe’s payments and cash transa
Slide 7: Total Cards
Total Cards in millions, except percentages Quarter ended March 2015 2016 2,508 2,418 1,555 1,609 864 899 Visa Inc. Credit Debit YOY Change 4% 4% 3% Note: The data presented is based on results reported quarterly by Visa clients on their operating certificates. Estimates may be utilized if data is u
Slide 8: Revenue – Q3 2016
Revenue – Q3 2016 US$ in millions, except percentages Fiscal 2015 Fiscal 2016 4,469 4,188 3,518 3,630 (670) (839) Gross Revenues Client Net Operating Incentives Revenues YOY Change 7% 25% 3% Fiscal 2016 % of Gross Revenues 19% 81% Note: We did not include Visa Europe’s financial results in our unaud
Slide 9: Revenue Detail – Q3 2016
Revenue Detail – Q3 2016 US$ in millions, except percentages Fiscal 2015 Fiscal 2016 1,635 1,550 1,541 1,400 1,039 1,084 199 209 Service Revenues Data Processing International Other Revenues Revenues Transaction Revenues YOY Change 6% 10% 4% 5% Note: We did not include Visa Europe’s financial result
Slide 10: Adjusted Operating Margin – Q3 2016
Adjusted Operating Margin – Q3 2016 US$ in millions, except percentages Fiscal 2015 Fiscal 2016 3,630 3,518 68% 2,457 64% 2,262 1,256 1,173 Net Operating Adjusted Operating Adjusted Operating Adjusted Operating Revenues Expenses Income Margin YOY Change 3% (7%) 9% 4 ppt Note: We did not include Visa
Slide 11: Adjusted Operating Expenses – Q3 2016
Adjusted Operating Expenses – Q3 2016 US$ in millions, except percentages Fiscal 2015 Fiscal 2016 566 509 224 189 154 130 120 137 117 123 82 78 Personnel Marketing Network & Professional Depreciation & General & Processing Fees Amortization Administrative YOY Change (10%) (16%) 5% (4%) (7%) 13% Note
Slide 12: Other Financial Results and Highlights
Other Financial Results and Highlights • Cash, cash equivalents and available-for-sale investment securities of $12.4 billion at the end of the fiscal third quarter • Adjusted free cash flow of $2.0 billion for the fiscal third quarter • Capital expenditures of $132 million during the fiscal third q
Slide 13: Financial Outlook for Fiscal Year 2016
Financial Outlook for Fiscal Year 2016 Financial Metric U.S. GAAP Adjusted* • 7% to 8% range on a constant dollar basis • 7% to 8% range on a constant dollar basis Annual net revenue growth: (excluding Europe) (excluding Europe) • About 3 ppts of negative foreign currency • About 3 ppts of negative
Slide 14: Appendix
Appendix
Slide 15: Reconciliation of Non-GAAP Financial Results
Reconciliation of Non-GAAP Financial Results US$ in millions, except percentages and per share data Our financial results during the three months ended June 30, 2016 reflect the impact of significant items that we do not believe are indicative of our operating performance, as they are either non-rec
Slide 16: Reconciliation of Non-GAAP Financial Results (Continued)
Reconciliation of Non-GAAP Financial Results (Continued) US$ in millions, except percentages and per share data Adjusted operating expenses, operating margin, non-operating income, income before income taxes, income taxes, effective income tax rate, net income, and diluted earnings per share are non
Slide 17: Calculation of Adjusted Free Cash Flow
Calculation of Adjusted Free Cash Flow US$ in millions Management believes that presentation of adjusted free cash flow is useful to measure the Company’s generation of cash available to first re-invest in the business and then return excess cash to shareholders through stock buybacks and cash divid