Slide 1: Second-Quarter 2020 Financial Results Conference Call
Mastercard Incorporated Second-Quarter 2020 Financial Results Conference Call July 30, 2020
Slide 2: Business Update, Financial Overview, COVID-Recovery Update
Business Update Financial Overview COVID-Recovery Update Business Highlights ©2020 Mastercard July 30, 2020 2
Slide 3: 2nd Quarter Selected Financial Performance
2nd Quarter Selected Financial Performance ($ in millions, except per share data) YOY Growth 2Q 20 2Q 19 Currency Non-GAAP Non-GAAP As adjusted Neutral Net revenue $ 3,335 $ 4,113 (19)% (17)% Adjusted operating expenses 1,606 1,716 (6)% (5)% Adjusted operating income 1,728 2,397 (28)% (25)% Adjusted
Slide 4: Gross Dollar Volume (GDV)
2nd Quarter Gross Dollar Volume (GDV) ($ in billions) Worldwide United States Rest of World (10)% Growth (5)% Growth (12)% Growth $1,800 $1,601 $1,600 $1,383 $1,400 $1,200 $805 $1,115 $919 $1,000 $764 $800 $556 $600 $486 $464 $484 $400 $796 $249 $280 $619 $560 $200 $435 $237 $183 $0 2Q19 2Q20 2Q19 2
Slide 5: Switched Transactions and Cards
2nd Quarter Switched Transactions and Cards Switched Transactions Cards (10)% Growth 5% Growth 4,000 30 Transactions (in billions) Cards (in millions) 3,000 2,646 21.4 2,532 19.4 417 20 439 2,000 10 2,093 2,229 1,000 0 0 2Q19 2Q20 2Q19 2Q20 ©2020 Mastercard Mastercard Cards Maestro Cards Notes: Figu
Slide 6: Revenue
2nd Quarter Revenue ($ in millions) 2Q19 2Q20 $5,000 $4,113 $4,000 $3,335 $3,000 $2,053 $1,901 $1,680 $1,474 $1,374 $2,000 $962 $1,081 $637 $1,000 $0 -$1,000 -$2,000 -$3,000 $(1,956)$(1,758) Domestic Cross-Border Transaction Other Rebates and Growth Assessments Volume Fees Processing Revenues Incent
Slide 7: Adjusted Operating Expenses
2nd Quarter Adjusted Operating Expenses ($ in millions) 2Q19 2Q20 $2,000 $1,716 $1,606 $1,500 $1,369 $1,368 $1,000 $500 $225 $93 $122 $145 $0 Growth General & Administrative Advertising & Marketing Depreciation & Amortization Adjusted Operating Expenses Non-GAAP —% (59)% 19% (6)% Currency-neutral 1%
Slide 8: Business Update Through July 21st
Business Update Through July 21st year-over-year growth % Week ending Week ending Week ending April Full Month1 May Full Month1 June Full Month1 July 7 July 14 July 21 Switched volume1 (23)% (9)% (3)% 1% 2% 1% United States (18)% (2)% 2% 6% 7% 5% Worldwide less U.S. (27)% (15)% (7)% (3)% (2)% (3)% S
Slide 9: Cross-border Volume Trends
Cross-border Volume Trends 60% 40% 20% Card not present (Non-travel) 0% Card not present -20% Total -40% Card present -60% -80% -100% ©2020 Mastercard JAN FEB MAR APR MAY JUN JUL1 1. Through July 21st MTD Note: Cross-border volume growth is calculated in a manner as defined in our Supplemental Opera
Slide 10: Looking Ahead
Looking Ahead Further thoughts ©2020 Mastercard July 30, 2020 10
Slide 11: Appendices
Appendices
Slide 12: Appendix A: Non-GAAP Reconciliation
Appendix A Non-GAAP Reconciliation ($ in millions, except per share data) Three Months Ended June 30, 2020 Operating Operating Operating Other Income Effective income Diluted earnings expenses income margin (Expense) tax rate Net income per share ($ in millions, except per share data) Reported - GAA
Slide 13: Appendix A (continued): Non-GAAP Reconciliation
Appendix A (continued) Non-GAAP Reconciliation Three Months Ended June 30, 2020 as compared to the Three Months Ended June 30, 2019 Increase/(Decrease) Diluted Operating Operating Operating Effective income earnings per Net revenue expenses income margin tax rate Net income share Reported - GAAP (19
Slide 14: Appendix B: Non-GAAP Reconciliation, Q3 2020 Operating Expenses Outlook
Appendix B Non-GAAP Reconciliation Third quarter 2020 operating expenses outlook Q3'20 vs. Q3'19 Increase/(Decrease) Forecasted Growth - GAAP 1 Mid-single-digits Litigation provisions ** Non-GAAP Growth Mid-single-digits Currency impact 2 0% Acquisitions 3 (6-7)% Non-GAAP Growth, currency neutral, e