Slide 1: Quarter and Full-Year Financial Results Conference Call
January 31, 2008 Exhibit 99.2 MasterCard Incorporated Quarter and Full-Year Financial Results Conference Call
Slide 2: Quarter Financial Results
2 • Delivered quarterly net income of $304 million and earnings per share of $2.26, on a diluted basis (including $1.37 from gains on additional sales of Redecard investment) • Achieved quarterly net revenue of $1.07 billion, representing growth of 27.8% primarily due to: – Gross dollar volume growt
Slide 3: Impact of U.S. Economic Uncertainty
3 MasterCard‘s distinct business drivers help to weather U.S. economic slowdown: • Despite change in spending patterns, consumers continue to transact • About half of business outside the U.S. • Continued secular shift from paper to electronic payments • No direct consumer credit exposure Impact of
Slide 4: Business Update
4 • EC Decision • SEPA Update • Litigation Update • Redecard Investment • Share Conversion and Repurchase Business Update
Slide 5: Quarter Selected Financial Performance
5 $ 0.30 $ 41 46 5.5% 793 $ 839 4Q 2006 Actual $ 2.26 $ 304 172 16.0% 901 $ 1,073 4Q 2007 Actual $ 0.31 $ 42 48 5.7% 791 $ 839 4Q 2006 adjusted for special items* 629.0 Diluted EPS 623.8 Net income 13.9 Total operating expenses 258.3 10.3 ppts Operating income Operating margin 27.8 Net revenue YOY A
Slide 6: MasterCard Branded Volume (GDV) Quarter 2007
6 Note: Figures may not sum due to rounding 10.0 10.0 268 United States 15.2 20.9 634 Worldwide 16.6 35.1 27 Canada 34.1 43.6 12 South Asia/Middle East/Africa (SAMEA) 19.0 26.4 88 Asia Pacific 22.0 28.2 47 Latin America 18.4 31.7 190 Europe Local Currency U.S. Dollar GDV ($ billions) YOY Growth Rate
Slide 7: Quarter Revenue - Operations Fees
7 • Net operations fees up 25.2%, or $167 to $829 • Gross operations fees increased 25.2%, or $186 to $925. Key drivers included: – Processed transactions growth: 17.2% – Cross-border volume growth of 27.7% – GDV growth: 15.2%* – Pricing adjustments of 2% • Net operations fees as a % of gross operat
Slide 8: Quarter Revenue - Assessments
8 • Net assessments increased 37.9%, or $67 to $244 • Gross assessments increased 18.5%, or $89 to $569 due to strong GDV growth of 15.2%* • Net assessments as a % of gross assessments improved * On a local currency basis $177 $244 $0 $50 $100 $150 $200 $250 $300 4Q06 4Q07 20% 30% 40% 50% 60% 70% 80
Slide 9: Quarter Operating Expenses
9 • Total operating expenses increased 13.5%, or $107 to $901 • G&A increased 24.1%, or $96, to $496 driven by: – Higher personnel costs for additional staff – Increased employee performance incentives – Severance expense for staff realignment – Professional fees for legal costs to defend outstandin
Slide 10: Full-Year 2007 Highlights
10 • Delivered full-year net income of $1.09 billion and earnings per share of $8.00, on a diluted basis (including $1.87 from gains on sale of a significant portion of Redecard investment) • Achieved full-year net revenue of $4.1 billion, representing growth of 22.3% primarily due to: – Gross dolla
Slide 11: Cash Flow Statement and Balance Sheet Highlights
11 • Generated $770 million in cash flow from operations during the year ended 12/31/07 • Cash, cash equivalents and available-for-sale securities of $3 billion at 12/31/07 • Capital expenditures increased to $156 million • Repurchased approximately 4 million Class A shares for $601 million – As of
Slide 12: Outlook
12 • Evaluating existing 3-5 year, long-term performance objectives – Will address at Investment Community meeting in Spring 2008 • Thoughts for 2008: – Net revenue growth: slower than 2007, but still double-digit – G&A growth: slower than net revenue growth and below 2007 G&A growth rate – A&M grow
Slide 13: MasterCard Worldwide: The Heart of Commerce
MasterCard Worldwide The Heart of Commerce”
Slide 14: Appendix A: GAAP Reconciliation
14 a Litigation settlements b Contribution of cash to the MasterCard Foundation c Contribution of stock to the MasterCard Foundation d Interest income on IPO proceeds held for redemption e Other income related to a settlement agreement to discontinue the company's sponsorship of the 2010 and 2014 Wo
Slide 15: Appendix A (cont.): GAAP Reconciliation
15 a Litigation settlements b Contribution of cash to the MasterCard Foundation c Contribution of stock to the MasterCard Foundation d Interest income on IPO proceeds held for redemption e Other income related to a settlement agreement to discontinue the company's sponsorship of the 2010 and 2014 Wo
Slide 16: Appendix B: Quarter Operations Fees Detail
16 25.2 $167 $662 $829 Net operations fees 24.7 (19) (77) (96) Rebates 25.0 186 739 924 Gross operations fees 30.0 36 120 156 Other operations fees 31.8 7 22 29 Consulting and research fees 21.7 5 23 28 Connectivity - - 18 18 Warning bulletin fees 28.3 17 60 77 Acceptance development fees 30.0 54 18
Slide 17: Appendix C: Quarter G&A Detail
17 24.1 $96 $399 $496 General and administrative expenses 11.1 4 36 40 Other (3.8) (1) 26 25 Travel and entertainment 13.3 2 15 17 Data processing - - 18 18 Telecommunications 19.2 10 52 63 Professional fees 32.2 81 $252 $333 Personnel 2007 vs. 2006 2007 vs. 2006 2006 2007 Percent Increase (Decrease