Visa Inc. · NYSE:V
Visa — Q4 2009 Earnings Presentation
27 slides from Visa's earnings presentation, Oct 27, 2009
Slide 1: Fiscal Fourth Quarter and Full-Year 2009 Financial Results
Visa Inc. Fiscal Fourth Quarter and Full-Year 2009 Financial Results October 27, 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 Fourth Quarter and Full-Year Results
Solid Fiscal Fourth Quarter and Full-Year Results • Adjusted quarterly and annual net income of $552 million and $2.4 billion or adjusted diluted earnings of $0.74 and $3.23 per share • Adjusted annual net income, excluding gain on sale of equity stake in VisaNet do Brasil, of $2.2 billion or adjust
Slide 4: Payments Volume – Q4 2009
Payments Volume – Q4 2009 US$ in billions, nominal Quarter ended June 2008 $699 $687 2009 $450 U.S. U.S. $426 $423 $412 U.S. U.S. $213 $192 $248 $261 ROW ROW U.S. U.S. $276 $275 ROW ROW $210 $220 $238 $234 ROW $38 ROW $41 Total Visa Inc. Credit Debit YOY Change (nominal) (2%) (5%) 5% YOY Change (con
Slide 5: Payments Volume – Fiscal Year 2009
Payments Volume – Fiscal Year 2009 US$ in billions, nominal Twelve Months ended June 2008 $2,680 $2,654 2009 U.S. U.S. $1,621 $1,736 $1,689 $1,611 U.S. U.S. $832 $785 $990 $918 ROW ROW U.S. U.S. $1,043 $1,058 ROW ROW $780 $837 $904 $905 ROW $138 ROW $153 Total Visa Inc. Credit Debit YOY Change (nomi
Slide 6: Payments Volume – Q4 2009
Payments Volume – Q4 2009 US$ in billions, nominal Quarter ended June 2008 $423 $412 2009 $162 $165 $50 $49 $45 $41 $19 $20 United States Asia Pacific (AP) Latin America and Canada Central and Caribbean (LAC) Eastern Europe, Middle East and Africa (CEMEA) YOY Change (nominal) (3%) 2% 0% (10%) 3% YOY
Slide 7: Payments Volume – Fiscal Year 2009
Payments Volume – Fiscal Year 2009 US$ in billions, nominal Twelve Months ended June 2008 $1,611 $1,621 2009 $620 $636 $181 $189 $173 $155 $69 $78 United States Asia Pacific (AP) Latin America and Canada Central and Caribbean (LAC) Eastern Europe, Middle East and Africa (CEMEA) YOY Change 1% 3% 4% (
Slide 8: Transactions – Q4 2009
Transactions – Q4 2009 in millions Quarter ended June Quarter ended September 15,491 2008 14,124 2009 Credit Credit 39% 37% 10,463 10,266 9,473 9,590 Debit Debit 61% 63% Total Transactions Processed Transactions Processed Transactions YOY 10% 8% 9% Change Note: Processed transactions represent trans
Slide 9: Transactions – Fiscal Year 2009
Transactions – Fiscal Year 2009 in millions Twelve Months Ended June Twelve Months ended September 59,205 2008 53,684 2009 Credit Credit 40% 38% 39,013 39,885 36,012 36,957 Debit Debit 60% 62% Total Transactions Processed Transactions Processed Transactions YOY 10% 8% 8% Change Note: Processed trans
Slide 10: Total Cards
Total Cards in millions Quarter ended June 1,732 2008 1,645 2009 941 791 847 798 Credit Debit Visa Inc. YOY Change (1%) 11% 5% Note: Percentage change calculated based on whole numbers, not rounded numbers. Fiscal Q4 2009 Earnings Results 10
Slide 11: Revenue Detail – Q4 2009
Revenue Detail – Q4 2009 US$ in millions Q4 FY 2008 Q4 FY 2009 $2,205 $2,008 $1,879 $1,709 Gross Net Operating Revenues Revenues ($299) ($326) Incentives YOY 10% 9% 10% Change Fiscal Q4 2009 Earnings Results 11
Slide 12: Revenue Detail – Fiscal Year 2009
Revenue Detail – Fiscal Year 2009 US$ in millions 2008 2009 $8,145 $7,424 $6,911 $6,263 Gross Net Operating Revenues Revenues ($1,161) ($1,234) Incentives YOY Change 10% 6% 10% Fiscal Q4 2009 Earnings Results 12
Slide 13: Revenue Detail – Q4 2009
Revenue Detail – Q4 2009 US$ in millions Q4 FY 2008 Q4 FY 2009 $788 $808 $727 $548 $512 $507 $160 $163 Data International Other Service Processing Transaction Revenues Revenues Revenues Revenues YOY 3% 33% (1%) 2% Change Fiscal Q4 2009 Earnings Results 13
Slide 14: Revenue Detail – Fiscal Year 2009
Revenue Detail – Fiscal Year 2009 US$ in millions 2008 2009 $3,174 $3,061 $2,430 $2,073 $1,916 $1,721 $569 $625 Data International Other Service Processing Transaction Revenues Revenues Revenues Revenues YOY 4% 17% 11% 10% Change Fiscal Q4 2009 Earnings Results 14
Slide 15: Adjusted Operating Margin – Q4 2009
Adjusted Operating Margin – Q4 2009 US$ in millions Q4 FY 2008 Q4 FY 2009 $1,879 49% $1,709 45% $943 $960 $919 $766 Operating Margin Net Operating Total Operating Operating Income Revenues Expenses YOY 4 ppts 10% 2% 20% Change Fiscal Q4 2009 Earnings Results 15
Slide 16: Adjusted Operating Margin – Fiscal Year 2009
Adjusted Operating Margin – Fiscal Year 2009 US$ in millions 2008 2009 53% $6,911 $6,263 46% $3,673 $3,366 $3,238 $2,897 Operating Margin Net Operating Total Operating Operating Income Revenues Expenses YOY 7 ppts 10% (4%) 27% Change Fiscal Q4 2009 Earnings Results 16
Slide 17: Adjusted Operating Expenses – Q4 2009
Adjusted Operating Expenses – Q4 2009 US$ in millions Q4 FY 2008 $943 $960 Q4 FY 2009 $301 $320 $283 $253 $111 $135 $107 $113 $93 $94 $42 $44 $6 $1 Personnel Network, Advertising, Professional Depreciation Administrative Litigation Total Operating EDP and Marketing and and and and Other Provision Ex
Slide 18: Adjusted Operating Expenses – Fiscal Year 2009
Adjusted Operating Expenses – Fiscal Year 2009 US$ in millions 2008 $3,366 2009 $3,238 $1,078 $1,077 $1,016 $918 $338 $393 $424 $352 $338 $328 $169 $158 $13 $2 Personnel Network, Advertising, Professional Depreciation Administrative Litigation Total Operating EDP and Marketing and and and and Other
Slide 19: Other Financial Results
Other Financial Results • Capital expenditures during the fiscal fourth quarter and full-year 2009 were $101 million and $306 million, respectively • Cash, cash equivalents, restricted cash and investment securities available-for-sale of $6.6 billion at the end of the fiscal year which includes $1.7
Slide 20: Financial Metrics for Fiscal Year 2010
Financial Metrics for Fiscal Year 2010 Annual net revenue growth Lower end 11-15% range Annual operating margin Mid 50% range Annual diluted class A common stock earnings 20% + per share growth Annual free cash flow $2 billion + Fiscal Q4 2009 Earnings Results 20
Slide 21: Financial Metrics for Fiscal Year 2010
Financial Metrics for Fiscal Year 2010 Capital Expenditures Lower million $200-250 end 11-15% range Advertising, marketing and promotion expenses Less than Mid $1 billion 50% range Volume and support incentives 20% +of 16-17% gross revenue GAAP tax rate 38billion $2 to 39%+ range Fiscal Q4 2009 Earn
Slide 22: Appendix – Reconciliation of Non-GAAP Measures
Appendix – Reconciliation of Non-GAAP Measures
Slide 23: Adjusted Operating Income and Net Income
Adjusted Operating Income and Net Income US$ in millions Three Months Ended Three Months Ended Twelve Months Ended Twelve Months Ended September 30, 2009 September 30, 2008 September 30, 2009 September 30, 2008 Net (loss) income (as reported) $ 514 $ (356) $ 2,353 $ 804 Addback: Income tax (benefit)
Slide 24: Reconciliation of Non-GAAP Adjusted Operating Expenses
Reconciliation of Non-GAAP Adjusted Operating Expenses US$ in millions For the Three Months For the Three Months Ended September 30, 2009 Ended September 30, 2008 Actual Adjustments As Adjusted Actual Adjustments As Adjusted Personnel $ 334 $ (33) (1) $ 301 $ 317 $ (64) (1) $ 253 Network, EDP and co
Slide 25: Reconciliation of Non-GAAP Adjusted Non-operating Income
Reconciliation of Non-GAAP Adjusted Non-operating Income US$ in millions For the Three Months For the Three Months Ended September 30, 2009 Ended September 30, 2008 Actual Adjustments As Adjusted Actual Adjustments As Adjusted Equity in earnings of unconsolidated affiliates $ - $ - $ - $ - $ - $ - I
Slide 26: 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. T
Slide 27: Calculation of Free Cash Flow
Calculation of Free Cash Flow US$ in millions Additions (+) / Reductions (-) to Net income FY 2009 Net income (as reported) 2,353 + Depreciation and amortization 226 Capital Assets - Capital expenditures (306) (80) + Litigation provision 2 + Accretion expense 93 Litigation - Settlement payments (2,2