Slide 1: MasterCard Incorporated First-Quarter 2011 Financial Results Conference Call
MasterCard Incorporated First-Quarter 2011 Financial Results Conference Call May 3, 2011
Slide 2: Business Update
Business Update • Operational Overview • Economic Update • Business Highlights
Slide 3: 1st Quarter Selected Financial Performance
1st Quarter Selected Financial Performance ($ in millions, except per share data) YOY 1Q 2011 1Q 2010 Growth % Net revenue $ 1,501 $ 1,308 14.8% Total operating expenses 665 608 9.4% Operating income 836 700 19.4% Operating margin 55.7% 53.5% 2.2 ppts Net income $ 562 $ 455 23.6% Diluted EPS $ 4.29
Slide 4: Gross Dollar Volume (GDV) Worldwide
1st Quarter Gross Dollar Volume (GDV) 900 Worldwide 12.8% Growth $728 700 $632 Rest of World 600 16.8% Growth $270 $480 500 $226 United States $397 400 5.8% Growth $144 $109 300 $249 $235 $459 200 $406 $126 $118 $336 $289 $118 $123 1Q 10 1Q 11 1Q 10 1Q 11 1Q 10 1Q 11 Credit Debit GDV (in $billions)
Slide 5: Processed Transactions and Cards
1st Quarter Processed Transactions and Cards Processed Transactions Cards 11.1% Growth 4.7% Growth 7,000 2,000 1,800 1,661 6,000 1,587 1,600 5,000 1,400 Transactions (in millions) 642 Cards (in millions) 1,200 4,000 1,000 3,000 5,971 5,373 800 2,000 600 944 988 400 1,000 200 0 0 1Q 10 1Q 11 1Q 10 1Q
Slide 6: Revenue
1st Quarter Revenue ($ in millions) 1Q 2010 1Q 2011 $1,800 $1,600 $1,501 $1,308 $1,400 $1,200 $1,000 $723 $800 $587 $590 $509 $600 $446 $462 $400 $206 $203 $200 $0 -$200 -$400 -$600 Fees Fees ($440) ($477) Revenue Revenues Assessments Volume Net Processing Other Incentives & Border Domestic Cross—Tr
Slide 7: Operating Expenses
1st Quarter Operating Expenses ($ in millions) • Total Operating Expenses 1Q 2010 1Q 2011 increased 9.4% increased 7.9% increased 12.1% increased 19.3% $900 $800 G&A $700 $665 • $608 $600 $494 $458 • A&M $500 $400 $300 • Depreciation & Amortization $200 $129 $115 $100 $35 $42 $0 General & Advertisin
Slide 8: Cash Flow Statement and Balance Sheet Highlights
1st Quarter Cash Flow Statement and Balance Sheet Highlights • Cash flow from operations of $355 million • Cash, cash equivalents and other liquid investments of $3.9 billion • Share Repurchase o As of March 31: approx. 2.6 million shares (cost of $654 million) o As of April 28: approx. 3.9 million
Slide 9: Thoughts for 2011
Thoughts for 2011 • Business update through April 28 • Thoughts for the full year o Net Revenue o Total Operating Expenses o Tax Rate
Slide 10: MasterCard
MasterCard Worldwide The Heart of Commerce”