Slide 1: Visa Inc. Fiscal Second Quarter 2008 Financial Results
Exhibit 99.2 Visa Inc. Fiscal Second Quarter 2008 Financial Results April 28, 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: Strong Opening Quarter
Strong Opening Quarter • On an adjusted basis – Quarterly net income of $401 million – 48% increase in net income over 2007 period – Earnings per share of $0.52 on a diluted basis • Achieved significant year-over-year growth – Payments volume of 19% to $681 billion – Total volume of 21% to $1.1 tril
Slide 4: Legal Matters
Legal Matters • FAS 5 reserve for litigation provision of $285 million recorded for covered litigation • Litigation escrow account established through the deposit of $3 billion in IPO proceeds, as directed by the litigation committee • American Express settlement payment of $1.13 billion made in Mar
Slide 5: Payments Volume & Processed Transactions
Payments Volume & Processed Transactions US$ in billions, transactions in millions YOY Growth Quarter ended December 2007 Payments Nominal Constant Volume USD USD United States $413 12.4% 12.4% Asia Pacific 158 24.3% 19.6% Latin America and Caribbean (LAC) 47 44.1% 30.5% Canada 45 28.5% 12.8% Centra
Slide 6: Fiscal Second Quarter 2008 - Financial Performance
Fiscal Second Quarter 2008 - Financial Performance Adjusted Basis US$ in millions, excluding percentages and EPS data Q2 FY 2008 Q1 FY 2008 Q2 FY 2007 Adj. Actual Adj. Actual Adj. Pro forma Net Revenues $ 1,453 $ 1,488 $ 1,191 Total Operating Expenses 783 757 744 Operating Income 670 731 447 Operati
Slide 7: Revenue Detail
Revenue Detail US$ in millions Q2 FY 2008 Q2 FY 2007 Percent Actual Pro forma Change Service fees $ 792 $ 614 29% Data processing fees 494 370 34% International transaction fees 379 281 35% Other revenue 126 113 12% Gross revenues 1,791 1,378 30% Incentives (338) (187) 81% Net revenues $ 1,453 $ 1,1
Slide 8: Expense Detail
Expense Detail Adjusted Basis US$ in millions Q2 FY 2008 Q2 FY 2007 Percent Actual Pro forma Change Personnel $ 272 $ 269 1% Network, EDP & communications 78 69 13% Advertising, marketing, and promotion 215 182 18% Professional and consulting fees 94 102 (8%) Depreciation and amortization 42 37 14%
Slide 9: Balance Sheet
Balance Sheet US$ in millions • Cash, cash equivalents, restricted cash and investment securities available-for-sale of $8.0 billion during the fiscal second quarter • Restricted cash for litigation escrow of $2.1 billion reflects the $945 million March payment to American Express • Capital expendit
Slide 10: Financial metrics over the next three years
Financial metrics over the next three years • Annual net revenue growth: 11-15 % • Annual adjusted operating margin (adjusted earnings before interest and taxes): low 40 % range • Annual adjusted diluted class A common earnings per share growth: 20%+ • Annual free cash flow (cash flow from operation
Slide 11: Appendix – Reconciliation of Non-GAAP Measures
Appendix – Reconciliation of Non-GAAP Measures
Slide 12: Quarterly Results of Operations
Quarterly Results of Operations Fiscal 2008 US$ in millions Fiscal 2007 Quarter Ended Quarter Ended December 31, September 30, December 31, 2006 March 31, 2007 June 30, 2007 2007 2007 Pro forma (1) Actual Operating Revenues Service fees $ 577 $ 614 $ 661 $ 730 $ 732 Data processing fees 377 370 449
Slide 13: Pro Forma Results of Operations
Pro Forma Results of Operations (1) US$ in millions For theThree For the Six Months Ended Months Ended March 31, 2007 March 31, 2007 Operating Revenues Service fees $ 614 $ 1,191 Data processing fees 370 747 Volume and support incentives (187) (323) International transaction fees 281 529 Other reven
Slide 14: Adjusted Operating Income and Net Income
Adjusted Operating Income and Net Income Pro forma for the Pro forma for the For the three Months For the Six Months US$ in millions Ended Ended Three Months Ended Six Months Ended March 31, 2008 March 31, 2008 March 31, 2007 March 31, 2007 Net income (as reported) $ 314 $ 738 $ 246 $ 495 Addback: I
Slide 15: Weighted Avg. Class A Common Stock Outstanding
Weighted Avg. Class A Common Stock Outstanding Used in the Calculation of Adjusted Diluted EPS For the Three For the Six Months Ended Months Ended March 31, 2008 March 31, 2008 (in millions) Weighted Average Shares Outstanding - GAAP 778 762 (1) Class A Shares 383 415 (2) Class B Shares (226) (238)
Slide 16: 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 and initial public offering. These measures also adjust