Slide 1: Third-Quarter 2018 Financial Results Conference Call
Mastercard Incorporated Third-Quarter 2018 Financial Results Conference Call October 30, 2018
Slide 2: Business Update, Financial & Operational Overview, Economic Update
Business Update Financial & Operational Overview Economic Update Business Highlights ©2018 Mastercard October 30, 2018 2
Slide 3: 3rd Quarter Selected Financial Performance
3rd Quarter Selected Financial Performance ($ in millions, except per share data) YOY Growth 3Q 18 Currency Non-GAAP1 3Q 17 Non-GAAP Neutral Net revenue $ 3,898 $ 3,398 15% 17% Total operating expenses 1,582 1,457 9% 10% Operating income 2,316 1,941 19% 22% Operating margin 59.4% 57.1% 2.3 ppt 2.6 p
Slide 4: Gross Dollar Volume (GDV)
3rd Quarter Gross Dollar Volume (GDV) ($ in billions) Worldwide United States Rest of World 13% Growth 9% Growth 15% Growth $1,600 $1,468 $1,400 $1,348 $1,200 $941 $1,026 $720 $1,000 $642 $800 $491 $433 $600 $407 $442 $400 $705 $748 $229 $209 $508 $535 $200 $198 $213 $0 3Q17 3Q18 3Q17 3Q18 3Q17 3Q18
Slide 5: Switched Transactions and Cards
3rd Quarter Switched Transactions and Cards Switched Transactions Cards 12% Growth 4% Growth 16% Adjusted Growth* 6% Adjusted Growth* 3,000 21,000 2,371 2,470 18,825 2,500 Transactions (in millions) Cards (in millions) 18,000 16,851 518 2,000 602 15,000 12,000 1,500 1,952 9,000 1,000 1,769 6,000 500
Slide 6: Revenue
3rd Quarter Revenue ($ in millions) 3Q17 3Q18 $5,000 $3,898 $4,000 $3,398 $3,000 $1,662 $1,912 $2,000 $1,302 $1,564 $1,157 $1,338 $747 $819 $1,000 $0 -$1,000 -$2,000 $(1,470)$(1,735) -$3,000 Domestic Cross-Border Transaction Other Rebates and Growth Assessments Volume Fees Processing Fees Revenues I
Slide 7: Operating Expenses
3rd Quarter Operating Expenses ($ in millions) 3Q17 3Q18 $2,000 $1,582 $1,457 $1,500 $1,236 $1,136 $1,000 $500 $235 $203 $118 $111 $0 Growth General & Administrative Advertising & Marketing Depreciation & Amortization Total Operating Expenses* Non-GAAP 9% 15% (6)% 9% Currency-neutral 10% 18% (5)% 10
Slide 8: Looking Ahead
Looking Ahead Business update through October 21st Thoughts for 2018 ©2018 Mastercard October 30, 2018 8
Slide 9: Appendices
Appendices
Slide 10: Appendix A: Non-GAAP Reconciliation
Appendix A Non-GAAP Reconciliation Three Months Ended September 30, 2018 Operating Operating Operating Effective income Diluted earnings expenses income margin tax rate Net income per share ($ in millions, except per share data) Reported - GAAP $ 1,611 $ 2,287 58.7 % 16.1 % $ 1,899 $ 1.82 Special It
Slide 11: Appendix B: Non-GAAP Growth Drivers
Appendix B Non-GAAP Growth Drivers Three Months Ended September 30, 2018 as compared to the Three Months Ended September 30, 2017 Increase/(Decrease) Net revenue Operating income Non-GAAP - currency-neutral 1 17 % 22 % Acquisition impact 2 —% —% Impact of new revenue recognition rules in 2018 (3)% (
Slide 12: Appendix C: Non-GAAP Reconciliation, 2018 full-year financial outlook
Appendix C Non-GAAP Reconciliation 2018 full-year financial outlook 2018 vs. 2017 Increase/(Decrease) Net revenue Operating expenses Forecasted Growth - U.S. GAAP 1 High-teens High-teens Special items 2 ** (3)% Foreign currency 3 0% 0% Non-GAAP Growth High-teens Mid-teens Note: Figures may not sum d