Slide 1: Fourth Quarter and Full Year 2022 Financial Results Conference Call
Mastercard Incorporated Fourth Quarter and Full Year 2022 Financial Results Conference Call January 26, 2023
Slide 2: Business Update
Business Update Key Trends Business Highlights Financial Overview ©2022 Mastercard January 26, 2023 2
Slide 3: 4th Quarter Selected Financial Performance
4th Quarter Selected Financial Performance ($ in millions, except per share data) 4Q 22 4Q 21 YOY Growth Non-GAAP Non-GAAP As adjusted Currency-neutral Net revenue $ 5,817 $ 5,216 12% 17% Adjusted operating expenses 2,617 2,389 10% 13% Adjusted operating income 3,200 2,827 13% 19% Adjusted operating
Slide 4: 4th Quarter Gross Dollar Volume (GDV)
4th Quarter Gross Dollar Volume (GDV) ($ in billions) Worldwide United States Rest of World 8% Growth 7% Growth 8% Growth $2,115 $2,133 $1,800 $1,600 $1,463 $1,434 $1,400 $1,138 $1,120 $1,200 $1,000 $805 $784 $800 $651 $699 $600 $977 $1,013 $333 $336 $400 $659 $650 $200 $318 $363 $0 4Q21 4Q22 4Q21 4
Slide 5: 4th Quarter Switched Transactions and Cards
4th Quarter Switched Transactions and Cards 1 Switched Transactions Cards 8% Growth 5% Growth 4,000 40 3,111 34.0 2,969 3,000 380 Cards (in millions) Transactions (in billions) 31.4 385 30 2,000 20 2,584 2,731 1,000 10 0 0 4Q21 4Q22 4Q21 4Q22 Mastercard Cards Maestro Cards ©2022 Mastercard 1. Subseq
Slide 6: 4th Quarter Revenue
4th Quarter Revenue ($ in millions) 4Q21 4Q22 $5,817 $6,000 $5,216 $5,000 $4,000 $2,987 $3,334 $3,000 $2,165 $2,251 $1,795 $1,840 $2,045 $2,000 $1,380 $1,000 $0 $-1,000 $-2,000 $-3,000 $-4,000 $(3,156) $(3,608) Domestic Cross-Border Transaction Other Rebates and Growth Assessments Volume Fees Proces
Slide 7: 4th Quarter Adjusted Operating Expenses
4th Quarter Adjusted Operating Expenses ($ in millions) 4Q21 4Q22 $3,000 $2,617 $2,500 $2,389 $2,218 $2,000 $1,862 $1,500 $1,000 $500 $338 $216 $189 $184 $0 Growth General & Administrative Advertising & Marketing Depreciation & Amortization Adjusted Operating Expenses Non-GAAP 19% (36)% (2)% 10% Cur
Slide 8: Business Update Through January 21
st Business Update Through January 21 Year-over-year growth %1 Current period as a percentage of 20191,2 2022 2023 2022 Jan 21 Q3 Oct Nov Dec Q4 Q3 Oct Nov Dec Q4 MTD 3 Switched volume 18% 15% 14% 14% 14% 21% 154% 158% 157% 153% 156% United States 12% 10% 10% 8% 9% 13% 145% 148% 145% 140% 144% World
Slide 9: Looking Ahead: Thoughts for 2023
Looking Ahead Thoughts for 2023 ©2022 Mastercard January 26, 2023 9
Slide 10: Appendices
Appendices
Slide 11: Non-GAAP Reconciliation
Appendix A Non-GAAP Reconciliation ($ in millions, except per share data) Three Months Ended December 31, 2022 Diluted Operating Operating Operating Other income Effective earnings per Net revenue expenses income margin (expense) income tax rate Net income share Reported - GAAP $ 5,817 $ 2,633 $ 3,1
Slide 12: Non-GAAP Reconciliation (continued)
Appendix A (continued) Non-GAAP Reconciliation Three Months Ended December 31, 2022 as compared to the Three Months Ended December 31, 2021 Increase/(Decrease) Operating Operating Operating Effective income Diluted earnings Net revenue expenses income margin tax rate Net income per share Reported -
Slide 13: Non-GAAP Reconciliation: 2023 Financial Outlook
Appendix B Non-GAAP Reconciliation 2023 financial outlook 2023 vs. 2022 Increase/(Decrease) Net Revenue Operating Expenses 1 Forecasted Growth - GAAP Low-teens Mid-single-digits 2 Litigation provisions ** 4% 3 Special Items -% 1% Low-end of low- Non-GAAP Growth Low-teens double-digits 4 Currency imp
Slide 14: Non-GAAP Reconciliation: First Quarter 2023 Financial Outlook
Appendix C Non-GAAP Reconciliation First quarter 2023 financial outlook Q1'23 vs. Q1'22 Increase/(Decrease) Net Revenue Operating Expenses 1 High-end of high- Forecasted Growth - GAAP single-digits Mid-single-digits 2 Special Items 1% 2% High-end of high- Non-GAAP Growth High-single-digits single-di
Slide 15: Business Update Through January 21 Excluding Russia
Appendix D st 1 Business Update Through January 21 Excluding Russia 2 2,3 Year-over-year growth % Current period as a percentage of 2019 2022 2023 2022 Jan 21 Q3 Oct Nov Dec Q4 Q3 Oct Nov Dec Q4 MTD 4 Switched volume 23% 21% 20% 19% 20% 26% 160% 165% 164% 159% 163% United States 12% 10% 10% 8% 9% 13
Slide 16: Revenue Growth Drivers
Appendix E Revenue Growth Drivers Three Months Ended December 31, 2022 as compared to the Three Months Ended December 31, 2021 Currency 4 Operational Acquisitions Impact Total 1 Domestic assessments 6% —% (3)% 4% 1 Cross-border volume fees 40 % —% (10)% 30 % 2 Transaction processing 16 % —% (4)% 12
Slide 17: Operating Expense Growth Drivers (Non-GAAP)
Appendix F 1 Operating Expense Growth Drivers (Non-GAAP) Three Months Ended December 31, 2022 as compared to the Three Months Ended December 31, 2021 Currency 2 Operational Acquisitions Impact Total General and administrative 21 % 2% (4)% 19 % Advertising and marketing (35)% 1% (2)% (36)% Depreciati
Slide 18: 4th Quarter G&A Detail
Appendix G 4th Quarter G&A Detail ($ in millions) Increase/(Decrease) 4Q 22 4Q 21 $ % Personnel $ 1,381 $ 1,089 $ 292 27 % Professional fees 167 136 32 23 % Data processing and telecommunications 238 255 (17) (7)% 1 Foreign exchange activity (7) 16 (23) ** Other 439 368 72 19 % Total general and adm