Slide 1: Visa Inc. Fiscal Second Quarter 2009 Financial Results
Exhibit 99.3 Visa Inc. Fiscal Second Quarter 2009 Financial Results April 29, 2009
Slide 2: Safe Harbor Reminder
Safe Harbor Reminder • Certain statements contained in this press release are 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, which are subject to the “safe harbor” created by
Slide 3: Solid Fiscal Second Quarter Results
Solid Fiscal Second Quarter Results • Adjusted quarterly net income of $553 million or adjusted diluted earnings of $0.73 per share • Strong operating revenues of $1.6 billion for the second quarter, up 13% • Continued positive secular trends • Business model resilience despite economic slowdown Not
Slide 4: Payments Volume
Payments Volume – Q2 2009 US$ in billions, nominal Quarter ended December 2007 $681 $675 2008 U.S. U.S. $450 $431 $409 $413 U.S. U.S. $203 $218 $244 $231 ROW ROW U.S. ROW U.S. $268 ROW $206 $266 $232 $195 $228 ROW $36 ROW $38 Total Visa Inc. Credit Debit YOY -1% -4% 6% Change Note: Figures may not s
Slide 5: Payments Volume Regional
Payments Volume – Q2 2009 Regional US$ in billions, nominal Quarter ended December 2007 2008 $413 $409 $158 $161 $47 $47 $45 $38 $18 $20 United States Asia Pacific (AP) Latin America and Canada Central and Caribbean (LAC) Eastern Europe, Middle East and Africa (CEMEA) YOY -1% 2% 0% -15% 12% Change N
Slide 6: Transactions
Transactions – Q2 2009 in millions Quarter ended December Quarter ended March 2007 14,898 2008 2008 13,620 2009 Credit 39% 9,797 9,360 9,094 8,800 Debit 61% Total Transactions Processed Transactions Processed Transactions YOY 9% 8% 6% Change Note: Processed transactions represent transactions involv
Slide 7: Total Cards
Total Cards in millions Quarter ended December 2007 2008 1,717 1,591 905 796 813 795 Credit Debit Visa Inc. YOY 2% 14% 8% Change Fiscal Q2 2009 Earnings Results 7
Slide 8: Revenue Detail
Revenue Detail – Q2 2009 US$ in millions 2008 2009 $1,942 $1,791 $1,647 $1,453 Gross Net Operating Revenues Revenues ($338) ($295) Incentives YOY 8% -13% 13% Change Fiscal Q2 2009 Earnings Results 8
Slide 9: Revenue Detail
Revenue Detail – Q2 2009 US$ in millions 2008 2009 $792 $804 $544 $494 $446 $379 $148 $126 Service Data International Other Revenues Processing Transaction Revenues Revenues Revenues YOY 2% 10% 18% 17% Change Fiscal Q2 2009 Earnings Results 9
Slide 10: Adjusted Operating Margin
Adjusted Operating Margin – Q2 2009 US$ in millions 2008 2009 $1,647 $1,453 55% $902 46% $783 $745 $670 Operating Margin Net Operating Total Operating Operating Income Revenues Expenses YOY 9 ppts 13% -5% 35% Change Fiscal Q2 2009 Earnings Results 10
Slide 11: Adjusted Operating Expenses
Adjusted Operating Expenses – Q2 2009 US$ in millions $272 $268 2008 2009 $215 $196 $92 $94 $78 $84 $75 $66 $42 $39 $7 $0 Personnel Network, Advertising, Professional Depreciation Administrative Litigation EDP and Marketing and and and and Other Provision Communications Promotion Consulting Amortiza
Slide 12: Other Financial Results
Other Financial Results • Capital expenditures during the fiscal second quarter were $68 million • Cash, cash equivalents, restricted cash and investment securities of $5.8 billion at the end of the second quarter – $2.1 billion of restricted cash for litigation escrow • Free cash flow of $1.2 billi
Slide 13: Financial Metrics through Fiscal Year 2010
Financial Metrics through Fiscal Year 2010 FY 2009: high single Annual net revenue growth digits FY 2010: 11-15% FY 2009: Low 50% range Annual adjusted operating margin FY 2010: High 40% / Low 50% range Annual adjusted diluted class A common earnings per share growth 20% + Annual free cash flow $1 b
Slide 14: Appendix – Reconciliation of Non-GAAP Measures
Appendix – Reconciliation of Non-GAAP Measures
Slide 15: Adjusted Operating Income and Net Income
Adjusted Operating Income and Net Income US$ in millions (1) Litigation reserve related to the covered litigation. Settlement of, or judgments in, covered litigation will be paid from the litigation escrow account. (2) Restructuring costs associated with workforce consolidation and elimination of ov
Slide 16: Reconciliation of Non-GAAP Adjusted Operating Expenses
Reconciliation of Non-GAAP Adjusted Operating Expenses US$ in millions Three Months Three Months Ended March 31, 2009 Ended March 31, 2008 Actual Adjustments As Adjusted Actual Adjustments As Adjusted (1) (1) Personnel $ 272 $ (4) $ 268 $ 289 $ (17) $ 272 Network, EDP and communications 92 - 92 78 -
Slide 17: Reconciliation of Non-GAAP Adjusted Non-operating (Expense) Income
Reconciliation of Non-GAAP Adjusted Non-operating (Expense) Income US$ in millions Three Months Three Months Ended March 31, 2009 Ended March 31, 2008 Actual Adjustments As Adjusted Actual Adjustments As Adjusted Equity in earnings of unconsolidated affiliates $ 1 - $ 1 $ - - $ - (1) Interest expens
Slide 18: 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,initial public offering and other non-recurring events.
Slide 19: Calculation of Free Cash Flow
Calculation of Free Cash Flow US$ in millions Additions (+) / For the Six Reductions (-) to Months Ended Net income March 31, 2009 Net income (as reported) $ 1,110 Recurring Items: + Depreciation and amortization 108 Capital Assets - Capital expenditures (136) Share-based compensation + Share-based