Slide 1: Third Quarter 2023 Financial Results Conference Call
Mastercard Incorporated Third Quarter 2023 Financial Results Conference Call October 26, 2023
Slide 2: Business Update
Business Update Key Trends Business Highlights Financial Overview ©2023 Mastercard October 26, 2023 2
Slide 3: 3rd Quarter Selected Financial Performance
3rd Quarter Selected Financial Performance ($ in millions, except per share data) 3Q 23 3Q 22 YOY Growth Non-GAAP Non-GAAP As adjusted Currency Impact Currency-neutral Net revenue $ 6,533 $ 5,756 14% (2)% 11% Adjusted operating expenses 2,689 2,437 10% (1)% 9% Adjusted operating income 3,844 3,319 1
Slide 4: 3rd Quarter Gross Dollar Volume (GDV)
3rd Quarter Gross Dollar Volume (GDV) ($ in billions) Worldwide United States Rest of World 11% Growth 5% Growth 13% Growth $2,073 $2,305 $2,200 $2,000 $1,800 $1,586 $1,209 $1,390 $1,600 $1,079 $1,400 $1,200 $865 $1,000 $683 $720 $748 $800 $600 $1,096 $344 $994 $331 $400 $720 $642 $200 $352 $376 $0
Slide 5: Switched Transactions and Cards
3rd Quarter Switched Transactions and Cards Switched Transactions Cards 15% Growth 7% Growth 4,000 40 37.2 3,263 3,038 3,000 381 32.4 Transactions (in billions) Cards (in millions) 388 30 2,000 20 2,882 2,650 1,000 10 0 0 3Q22 3Q23 3Q22 3Q23 Mastercard Cards Maestro Cards ©2023 Mastercard Note: Figu
Slide 6: 3rd Quarter Net Revenue
3rd Quarter Net Revenue ($ in millions) 3Q22 3Q23 $7,000 $6,533 $6,000 $5,756 $5,000 1 1 $4,210 $4,000 $3,765 $3,000 $2,323 $1,991 $2,000 $1,000 $0 Value-added Growth Payment Network Services and Solutions Total Net Revenue GAAP 12% 17% 14% Currency-neutral 10% 14% 11% 1 Payment Network is presented
Slide 7: Key Metrics related to the Payment Network
3rd Quarter Key Metrics related to the Payment Network ($ in millions) 3Q22 3Q23 $6,000 $5,000 $4,000 $3,172 $3,000 $2,786 $2,460 $2,313 $2,220 $2,000 $1,804 $1,000 $195 $229 $0 Cross-Border Transaction Other Domestic Assessments Assessments Processing Assessments Network Assessments Increase/(Decre
Slide 8: 3rd Quarter Adjusted Operating Expenses
3rd Quarter Adjusted Operating Expenses ($ in millions) 3Q22 3Q23 $3,000 $2,689 $2,437 $2,500 $2,285 $2,069 $2,000 $1,500 $1,000 $500 $182 $193 $185 $211 $0 Growth General & Administrative Advertising & Marketing Depreciation & Amortization Adjusted Operating Expenses Non-GAAP 10% 6% 14% 10% Currenc
Slide 9: Business Update Through October 21
st Business Update Through October 21 Year-over-year growth % Current period as a percentage of 20191,2 2023 2023 Oct 21 Oct 21 Q2 Jul Aug Sep Q3 Q2 Jul Aug Sep Q3 MTD MTD 3 Switched volume 15% 13% 14% 14% 14% 11% 178% 179% 176% 178% 178% 177% United States 7% 6% 7% 7% 7% 5% 155% 157% 152% 155% 155%
Slide 10: Looking Ahead: Further thoughts for 2023
Looking Ahead Further thoughts for 2023 ©2023 Mastercard October 26, 2023 10
Slide 11: Appendices
Appendices
Slide 12: Appendix A: Non-GAAP Reconciliation
Appendix A Non-GAAP Reconciliation ($ in millions, except per share data) Three Months Ended September 30, 2023 Diluted Operating Operating Operating Other income Effective earnings per Net revenue expenses income margin (expense) income tax rate Net income share Reported - GAAP $ 6,533 $ 2,689 $ 3,
Slide 13: Appendix A (continued): Non-GAAP Reconciliation
Appendix A (continued) Non-GAAP Reconciliation Three Months Ended September 30, 2023 as compared to the Three Months Ended September 30, 2022 Increase/(Decrease) Operating Operating Operating Effective income Diluted earnings Net revenue expenses income margin tax rate Net income per share Reported
Slide 14: Appendix B: Non-GAAP Reconciliation
Appendix B Non-GAAP Reconciliation Fourth quarter 2023 financial outlook Q4'23 vs. Q4'22 Increase/(Decrease) Net Revenue Operating Expenses 1 High-end of high- Forecasted Growth - GAAP Low-double digits single digits 2 Litigation provisions ** 1% High-end of high- Non-GAAP Growth Low-double digits s
Slide 15: Appendix C: Key Metrics related to the Payment Network
Appendix C Key Metrics related to the Payment Network • Domestic assessments are charges based on activity related to cards that carry the Company’s brands where the merchant country and the country of issuance are the same. These assessments are primarily driven by the domestic dollar volume of act
Slide 16: Appendix D: Business Update Through October 21 Excluding Russia
Appendix D st 1 Business Update Through October 21 Excluding Russia 2,3 Year-over-year growth % Current period as a percentage of 2019 2023 2023 Oct 21 Oct 21 Q2 Jul Aug Sep Q3 Q2 Jul Aug Sep Q3 MTD MTD 4 Switched volume 15% 13% 14% 14% 14% 11% 183% 184% 181% 183% 183% 181% United States 7% 6% 7% 7%