Slide 1: Fourth-Quarter and Full-Year 2012 Financial Results Conference Call
MasterCard Incorporated Fourth-Quarter and Full-Year 2012 Financial Results Conference Call January 31, 2013
Slide 2: Business Update
Business Update • Operational Overview • Economic Update • Business Highlights 2
Slide 3: 4th Quarter Selected Financial Performance
4th Quarter Selected Financial Performance ($ in millions, except per share data) YOY Growth As FX 4Q 12 4Q 11* Reported Adjusted Net revenue $ 1,895 $ 1,728 10% 12% Total operating expenses 996 968 3% 4% Operating income 899 760 18% 21% Operating margin 47.4% 44.0% 3.4 ppts 3.6 ppts Net income $ 60
Slide 4: 4th Quarter Gross Dollar Volume (GDV)
4th Quarter Gross Dollar Volume (GDV) ($ in billions) $1,200 Worldwide 14% Growth $986 $1,000 Rest of World $865 18% Growth $800 $415 $685 $350 United States $582 $600 7% Growth $260 $212 $400 $282 $301 $571 $514 $200 $139 $155 $424 $371 $143 $147 $0 4Q 11 4Q 12 4Q 11 4Q 12 4Q 11 4Q 12 Credit Debit
Slide 5: Processed Transactions and Cards
4th Quarter Processed Transactions and Cards Processed Transactions Cards 10,000 20% Growth 8% Growth 2,000 1,900 1,760 8,000 1,600 Transactions (in millions) 743 714 Cards (in millions) 6,000 1,200 9,222 4,000 7,677 800 1,046 1,158 2,000 400 0 0 4Q 11 4Q 12 4Q 11 4Q 12 MasterCard Cards Maestro Card
Slide 6: 4th Quarter Revenue
4th Quarter Revenue ($ in millions) 4Q 11 4Q 12 $2,000 $1,728 $1,895 $1,500 $871 $945 $1,000 $682 $787 $540 $616 $50 0 $281 $329 $0 -$50 0 -$1,000 ($646) ($782) -$1,500 Domestic Cross-Border Transaction Other Rebates and Total Net Assessments Volume Fees Processing Fees Revenues Incentives Revenue +
Slide 7: 4th Quarter Operating Expenses
4th Quarter Operating Expenses ($ in millions) 4Q 11 4Q 12 $968 $996 $1,000 $800 $639 $597 $600 $400 $319 $295 $200 $52 $62 $0 General Advertising Depreciation Total & & & Operating Administrative Marketing Amortization Expenses +7% (8%) +18% +3%* FX adjusted +8% (6%) +18% +4%* Note: Figures may not
Slide 8: Thoughts for the Future
Thoughts for the Future • Business update through January 28 • Long-term Performance Objectives • Thoughts for 2013 o Net Revenue o Operating Expenses o Tax Rate o FX sensitivity 8
Slide 9: MasterCard Worldwide: The Heart of Commerce
MasterCard Worldwide The Heart of Commerce”
Slide 10: GAAP Reconciliation
Appendix A GAAP Reconciliation ($ in millions, except per share data) Three Months Ended Three Months Ended December 31, 2012 December 31, 2011 Actual Actual Special Item Non-GAAP Provision for litigation settlement $ - $ 770 $ (770) $ - Total operating expenses 996 1,738 (770) 968 Operating income
Slide 11: GAAP Reconciliation (cont.)
Appendix A (cont.) GAAP Reconciliation ($ in millions, except per share data) Twelve Months Ended Twelve Months Ended December 31, 2012 December 31, 2011 Actual Special Item Non-GAAP Actual Special Item Non-GAAP Provision for litigation settlement $ 20 $ (20) $ - $ 770 $ (770) $ - Total operating ex
Slide 12: 4th Quarter G&A Detail
Appendix B 4th Quarter G&A Detail ($ in millions) Dollar Percent Three Months Ended Increase Increase December 31 (Decrease) (Decrease) 2012 vs. 2012 vs. 2012 2011 2011 2011 Personnel $ 398 $ 402 $ (4) (1) Professional fees 73 72 1 1 Data processing and telecommunications 54 44 10 23 Foreign exchang