Slide 1: MasterCard Incorporated 3rd Quarter 2006 Financial Results Conference Call
November 1, 2006 Exhibit 99.2 rd MasterCard Incorporated 3 Quarter 2006 Financial Results Conference Call
Slide 2: 3rd Quarter Financial Results
2 • Delivered net income of $193 million and earnings per share of $1.42 • Achieved strong revenue growth of 13.9% primarily due to: – Gross dollar volume growth (15.0% to $502 billion) – Increased processed transactions (18.9% to 4.2 billion) – Restructured cross-border pricing (implemented April 2
Slide 3: 3rd Quarter Selected Financial Performance
3 (4.6) 219 209 Advertising and Market Development (4.3) 27 25 Depreciation and Amortization NM - - Litigation Settlements 37.3 1.03 1.42 Basic and Diluted EPS (1.4) ppts. 35.3% 33.9% Effective Tax Rate 38.8 139 193 Net Income 18.7 331 393 General and Administrative 27.9 215 275 Operating Income 13.
Slide 4: MasterCard Branded Volume (GDV) Third Quarter 2006
4 Note: Figures may not sum due to rounding 25.2 25.1 31 Latin America 12.9 16.7 135 Europe 13.0 21.2 19 Canada 6.1 7.8 70 Asia Pacific 17.3 17.3 238 United States 15.0 16.5 502 Worldwide 44.6 36.7 8 South Asia / Middle East / Africa Local Currency U.S. Dollar GDV ($ Billions) % Year-Over-Year Growt
Slide 5: 3rd Quarter Revenue - Assessments
5 $241 $278 $0 $50 $100 $150 $200 $250 $300 3Q05 3Q06 20% 30% 40% 50% 60% 70% 80% Net Assessment Fees - Net Assessment Fees as a % of Gross Assessment Fees -- • Net assessments down $37 or 13.3% • Gross assessments increased - $20 or 4.6% over 2005. Key drivers include: – GDV increases – Restructure
Slide 6: 3rd Quarter Revenue - Operations Fees
6 • Net operations fees up $147 or 28.6% • Gross operations fees increased $169 or 30.2%. Key drivers include increases in: – Processed transactions – GDV – Restructured pricing, including $42 million reclassification from assessments - • Net operations fees as % of gross operations fees declined du
Slide 7: 3rd Quarter Operating Expenses
7 Total operating expenses decreased 2.6% to $627: – Adjusted for 2005 special items, increased 8.8% General and administrative, increased 12.2% to $393: – Adjusted for 2005 special items, increased 18.7% – Driven by increases in professional fees and personnel costs Advertising and market developme
Slide 8: Balance Sheet and Cash Flow Statement Highlights
8 • Cash, cash equivalents and available-for-sale securities of $2.3 billion • Stockholders’ Equity at $2.3 billion • Accounts receivable increased $97 million primarily due to: – Pricing recalibration in Europe – Volume increases – An increase in VAT receivable due to timing of payments • Obligatio
Slide 9: 4Q Special Items for Consideration
9 4Q05 Special Items: Currency Conversion Reserve (reported as Litigation Settlements expense) ($27) Pre-Tax (Expense) 4Q Special Items for Consideration ($ in Millions)
Slide 10: Long-Term Performance Objectives
10 • Grow revenue • Continued margin improvement • Deliver net income growth • Return on equity Long-Term Performance Objectives
Slide 11: MasterCard Worldwide: The Heart of Commerce
MasterCard Worldwide The Heart of Commerce”
Slide 12: Appendix A: GAAP Reconciliation of Special Items
12 a Adjustment to reflect accounting methodology change for cash-based executive incentive plans b Litigation settlements c Gains from the settlement of a contractual dispute ($ million) YOY Growth Actual Special Items As Adjusted Actual Special Items As Adjusted As Adjusted Revenue $902 - $902 $79