Visa Inc. · NYSE:V
Visa — Q1 2016 Earnings Presentation
16 slides from Visa's earnings presentation, Jan 28, 2016
Slide 1: Visa Inc. Fiscal First Quarter 2016 Financial Results
Visa Inc. Fiscal First Quarter 2016 Financial Results January 28, 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 First Quarter Results
Solid Fiscal First Quarter Results Net operating revenues of $3.6 billion, up 5% over prior year GAAP quarterly net income of $1.9 billion and $0.80 diluted earnings per share Adjusted quarterly net income of $1.7 billion and $0.69 diluted earnings per share Repurchased 25.7 million shares of class
Slide 4: Payments Volume
Payments Volume US$ in billions, nominal, except percentages Quarter ended September 2014 2015 1,265 1,216 INTL = International U.S. U.S. 632 693 770 800 U.S. U.S. 313 345 446 465 INTL INTL U.S. U.S. INTL INTL 349 584 572 319 457 456 INTL 127 INTL 116 Total Visa Inc. Credit Debit YOY Change 4% (nomi
Slide 5: Payments Volume
Payments Volume US$ in billions, nominal, except percentages Quarter ended December Note: Current quarter payments volume and other select metrics are provided in the operational performance data supplement in the press release to provide more recent operating data. Service revenues continue to be r
Slide 6: Transactions
Transactions in millions, except percentages Quarter ended December 2014 2015 29,047 25,994 38% 38% Credit Credit Credit Credit 18,986 17,599 38% 38% 62% 62% Debit Debit Debit 62% Total Transactions Processed Transactions YOY Change 12% 8% Note: Total transactions represent payments and cash transac
Slide 7: Total Cards
Total Cards in millions, except percentages Quarter ended September 2014 2015 2,459 2,340 1,491 1,572 849 887 Visa Inc. Credit Debit YOY Change 5% 5% 5% Note: The data presented is based on results reported quarterly by Visa clients on their operating certificates. Estimates may be utilized if data
Slide 8: Revenue – Q1 2016
Revenue – Q1 2016 US$ in millions, except percentages Fiscal 2015 Fiscal 2016 4,353 4,095 3,382 3,565 (713) (788) Gross Revenues Client Net Operating Incentives Revenues YOY Change 6% 10% 5% Fiscal 2016 % of Gross Revenues 18% 82% Note: Figures may not recalculate exactly due to rounding. Percentage
Slide 9: Revenue Detail – Q1 2016
Revenue Detail – Q1 2016 US$ in millions, except percentages Fiscal 2015 Fiscal 2016 1,645 1,538 1,479 1,383 1,031 970 204 198 Service Revenues Data Processing International Other Revenues Revenues Transaction Revenues YOY Change 7% 7% 6% (3%) Note: Figures may not recalculate exactly due to roundin
Slide 10: Operating Margin – Q1 2016
Operating Margin – Q1 2016 US$ in millions, except percentages Fiscal 2015 Fiscal 2016 3,565 3,382 66% 67% 2,396 2,238 1,144 1,169 Net Operating Total Operating Operating Operating Revenues Expenses Income Margin YOY Change 5% 2% 7% 1 ppt Note: Operating margin is calculated as operating income divi
Slide 11: Operating Expenses – Q1 2016
Operating Expenses – Q1 2016 US$ in millions, except percentages Fiscal 2015 Fiscal 2016 509 499 205 194 156 114 128 120 120 126 70 72 Personnel Marketing Network & Professional Depreciation & General & Processing Fees Amortization Administrative YOY Change (2%) (5%) 12% 2% (1%) 24% Note: Figures ma
Slide 12: Other Financial Results
Other Financial Results • Cash, cash equivalents and available-for-sale investment securities of $24.8 billion at the end of the fiscal first quarter • Free cash flow of $1.9 billion for the fiscal first quarter • Capital expenditures of $126 million during the fiscal first quarter • Issued $16.0 bi
Slide 13: Financial Metrics for Fiscal Year 2016
Financial Metrics for Fiscal Year 2016 • Constant dollar revenue growth of high single-digit Annual net revenue growth to low double-digit range • Negative 3 ppts foreign currency impact Client incentives as % of gross revenues • 17.5% - 18.5% range Annual operating margin • Mid 60s Adjusted effecti
Slide 14: Appendix
Appendix
Slide 15: Reconciliation of Non-GAAP Financial Results
Reconciliation of Non-GAAP Financial Results US$ in millions, except percentages and per share data During the first quarter of fiscal 2016, we recorded a decrease of $255 million in the fair value of the Visa Europe put option, resulting in the recognition of non-cash, non-operating income that we
Slide 16: Calculation of Free Cash Flow
Calculation of Free Cash Flow US$ in millions Additions (+) / Reductions (-) to Three Months Ended Net income December 31, 2015 (1) Net income (as reported) 1,941 Capital Assets + Depreciation and amortization 120 - Capital expenditures (126) (6) Litigation + Litigation provision — - Settlement paym