Mastercard Incorporated · NYSE:MA

Mastercard — Q1 2014 Earnings Presentation

10 slides from Mastercard's earnings presentation, May 1, 2014

  1. Slide 1: First-Quarter 2014 Financial Results Conference Call

    MasterCard Incorporated First-Quarter 2014 Financial Results Conference Call May 1, 2014 ©2014 MasterCard. Proprietary

  2. Slide 2: Thoughts for the Future

    Thoughts for the Future Page 2 Operational Overview Economic Update Business Highlights ©2014 MasterCard. Proprietary

  3. Slide 3: 1st Quarter Selected Financial Performance

    1st Quarter Selected Financial Performance ($ in millions, except per share data) Page 3 YOY Growth As FX 1Q 14 1Q 13 Reported Adjusted Net revenue $ 2,177 $ 1,906 14% 14% Total operating expenses 892 799 12% 11% Operating income 1,285 1,107 16% 16% Operating margin 59.0% 58.1% 1.0 ppts 1.0 ppts Net

  4. Slide 4: 1st Quarter Gross Dollar Volume (GDV)

    1st Quarter Gross Dollar Volume (GDV) ($ in billions) Page 4 Worldwide United States Rest of World 14% Growth 9% Growth 16% Growth $1,200 $1,045 $1,000 $947 $471 $800 $726 $415 $653 $600 $296 $255 $400 $294 $319 $532 $574 $160 $174 $429 $200 $398 $134 $145 $0 1Q13 1Q14 1Q13 1Q14 1Q13 1Q14 Credit Deb

  5. Slide 5: Processed Transactions and Cards

    1st Quarter Processed Transactions and Cards Page 5 Processed Transactions Cards 14% Growth 8% Growth 12,000 2,012 2,000 1,859 9,849 10,000 8,656 703 Transactions (in millions) 8,000 1,500 693 Cards (in millions) 6,000 1,000 4,000 1,309 1,166 500 2,000 0 0 1Q 13 1Q 14 1Q 13 1Q 14 MasterCard Cards Ma

  6. Slide 6: 1st Quarter Revenue

    1st Quarter Revenue ($ in millions) Page 6 1Q 13 1Q 14 $2,500 $2,177 $1,906 $1,500 $873 $938 $821 $936 $589 $695 $500 $280 $341 -$500 ($657) ($733) -$1,500 Domestic Cross-Border Transaction Other Rebates and Total Net Revenue Assessments Volume Fees Processing Fees Revenues Incentives As-reported 7%

  7. Slide 7: 1st Quarter Operating Expenses

    1st Quarter Operating Expenses ($ in millions) Page 7 1Q 13 1Q 14 $1,200 $892 $799 $800 $670 $608 $400 $129 $149 $62 $73 $0 General Advertising Depreciation Total & & & Operating Administrative Marketing Amortization Expenses As-reported 10% 15% 19% 12% FX-adjusted 10% 14% 19% 11% Note: Figures may

  8. Slide 8: Thoughts for the Future

    Thoughts for the Future Page 8 Business update through April 28 Long-Term Performance Objectives Thoughts for 2014 • Impact from Acquisitions • Revenue • Operating Expenses • Tax Rate • FX Impact ©2014 MasterCard. MasterCard Incorporated Proprietary

  9. Slide 9: ©2014 MasterCard. Proprietary

    ©2014 MasterCard. Proprietary

  10. Slide 10: Reclassification of Revenue Detail

    Appendix A Reclassification of Revenue Detail Reclassified Historical Revenue Detail 2011 2012 2013 (in $ millions) Q1 Q2 Q3 Q4 FY Q1 Q2 Q3 Q4 FY Q1 Q2 Q3 Q4 FY Domestic assessments 685 768 803 827 3,083 795 846 857 889 3,387 873 912 931 972 3,688 Cross-border volume fees 448 496 562 524 2,030 515 5

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