Slide 1: Fiscal First Quarter Financial Results
Visa Inc. Fiscal First Quarter Financial Results February 2, 2011 Exhibit 99.2
Slide 2: Forward-Looking Information
Fiscal First Quarter 2011 Financial Results 2 Forward-Looking Information This presentation contains forward-looking statements within the meaning of the U.S. Private Securities Litigation Reform Act of 1995. These statements can be identified by the terms “expect,” “will,” “continue” and similar re
Slide 3: Solid Fiscal First Quarter Results
Fiscal First Quarter 2011 Financial Results 3 Solid Fiscal First Quarter Results • Strong operating revenues of $2.2 billion, up 14% over prior year • Quarterly net income of $884 million, up 16% and diluted earnings of $1.23 per share, up 20% over prior year • Continued positive secular trends and
Slide 4: Payments Volume - Quarter ended September
Fiscal First Quarter 2011 Financial Results 4 ROW 45 ROW 303 ROW 295 U.S. 417 U.S. 473 ROW 356 U.S. 195 258 ROW U.S. 223 U.S. 266 ROW 61 U.S. 207 Quarter ended September US$ in billions, nominal, except percentages Payments Volume Note: Figures may not sum due to rounding. Growth rates calculated ba
Slide 5: Payments Volume - Quarter ended December
Fiscal First Quarter 2011 Financial Results 5 ROW 53 ROW 331 ROW 334 U.S. 438 U.S. 493 ROW 404 U.S. 201 278 ROW U.S. 216 U.S. 238 U.S. 277 ROW 71 Total Visa Inc. Credit Debit Quarter ended December US$ in billions, nominal, except percentages Payments Volume Note: Current quarter payments volume and
Slide 6: Payments Volume by Region - Quarter ended September
Fiscal First Quarter 2011 Financial Results 6 Quarter ended September US$ in billions, nominal, except percentages Payments Volume Note: Growth rates calculated based on whole numbers, not rounded numbers. From time to time, previously submitted volume information may be updated. Prior year volume i
Slide 7: Payments Volume by Region - Quarter ended December
Fiscal First Quarter 2011 Financial Results 7 Quarter ended December US$ in billions, nominal, except percentages Payments Volume YOY Change (nominal) YOY Change (constant) Note: Current quarter payments volume and other select metrics are provided in the operational performance data supplement to p
Slide 8: Transactions
Fiscal First Quarter 2011 Financial Results 8 Debit 65% Credit 35% Credit 37% Debit 63% Credit 37% Debit 63% Credit 36% Debit 64% 15,855 10,463 16,619 10,924 18,149 12,119 12,580 Total Transactions Processed Transactions Total Transactions Processed Transactions Quarter ended September in millions,
Slide 9: Total Cards
Fiscal First Quarter 2011 Financial Results 9 1,766 1,081 1,850 Credit Debit Visa Inc. Quarter ended September in millions, except percentages Total Cards YOY Change (2%) Note: From time to time, previously submitted cards information may be updated. Prior year cards information presented has not be
Slide 10: Revenue - Q1 2011
Fiscal First Quarter 2011 Financial Results 10 2,334 (374) 1,960 2,643 (405) 2,238 Revenue – Q1 2011 US$ in millions, except percentages Gross Revenues Incentives Net Operating Revenues YOY Change Note: Growth rates calculated based on whole numbers, not rounded numbers. Fiscal 2010 Fiscal 2011
Slide 11: Revenue Detail - Q1 2011
Fiscal First Quarter 2011 Financial Results 11 Revenue Detail – Q1 2011 US$ in millions, except percentages Service Revenues Data Processing Revenues International Transaction Revenues Other Revenues 1,008 YOY Change (15%) Note: Growth rates calculated based on whole numbers, not rounded numbers. Fi
Slide 12: Operating Margin - Q1 2011
Fiscal First Quarter 2011 Financial Results 12 Operating Margin – Q1 2011 US$ in millions, except percentages 1,960 1,217 2,238 1,366 Net Operating Revenues Total Operating Expenses Operating Income Operating Margin YOY Change (1 ppt) Note: Growth rates calculated based on whole numbers, not rounded
Slide 13: Operating Expenses - Q1 2011
Fiscal First Quarter 2011 Financial Results 13 (43) Operating Expenses – Q1 2011 US$ in millions, except percentages Personnel Network and Processing Marketing Professional Fees Depreciation and Amortization General and Administrative Litigation Provision YOY Change (24%) (9%) NM Note: Growth rates
Slide 14: Other Financial Results
Fiscal First Quarter 2011 Financial Results 14 Other Financial Results • Cash, cash equivalents, restricted cash and available-for-sale investment securities of $6.5 billion at the end of the fiscal first quarter which includes $2.7 billion of restricted cash for litigation escrow • Total free cash
Slide 15: Financial Metrics for Fiscal Year 2011
Fiscal First Quarter 2011 Financial Results 15 Less than $900 million Marketing expenses Financial Metrics for Fiscal Year 2011 Annual operating margin About 60% 16% to 16.5% range Client incentives as % of gross revenues Annual net revenue growth 11% to 15% range
Slide 16: Financial Metrics for Fiscal Year 2011
Fiscal First Quarter 2011 Financial Results 16 Financial Metrics for Fiscal Year 2011 Capital expenditures Between $250- $275 million Annual diluted class A common stock earnings per share growth 20% + GAAP tax rate 36.5% to 37% range Annual free cash flow $3 billion +
Slide 17: Appendix: Reconciliation of Non-GAAP Measures
Appendix Reconciliation of Non-GAAP Measures
Slide 18: Calculation of Free Cash Flow
Fiscal First Quarter 2011 Financial Results A1 Calculation of Free Cash Flow US$ in millions (1) Excludes $334 million of estimated federal and a majority of the estimated state tax payments related to Visa's fiscal Q1, which were not paid until January when due. Estimated tax payments for Visa's fi