Mastercard Incorporated · NYSE:MA
Mastercard — Investor Day (September 2011)
97 slides from Mastercard's investor day presentation, Sep 15, 2011
Slide 1: Investment Community Meeting
MasterCard ‘September 15, 2011 Worldwide hcorpora Investment Community Meeting (©2011 MasterCard, Proprietary,
Slide 2: Agenda
Agenda 8:30 a.m. Welcome Strategic Discussion Marketing Update Core Products Emerging Payments MasterCard Advisors Barbara Gasper Ajay Banga Alfredo Gangotena Tim Murphy Ed McLaughlin Kevin Stanton 10:20 a.m. Break 10:40 a.m. LAC & APMEA U.S. Markets Financial Perspective Q&A Session Closing Remarks
Slide 3: Forward-Looking Statements
Forward-Looking Statements Today’s presentation may contain, in addition to historical information, forward looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements are based on our current assumptions, expectations and projectio
Slide 4: Ajay Banga: Executing on the Strategy
Ajay Banga President and Chief Executive Officer Executing on the Strategy
Slide 5: Recent Performance vs. Long-Term Objectives
Recent Performance vs. Long-Term Objectives 2011-2013 First Half 2011 Objectives* Performance* Net Revenue 12-14% 16% Growth CAGR Operating Minimum Margin 50% 54% annually Earnings Per 20%+ Share Growth CAGR 28% 2011-2013 First Half 2011 Objectives* Performance* Net Revenue 12-14% 16% Growth CAGR Op
Slide 6: Three Drivers of Growth
Three Drivers of Growth Personal Consumption Expenditure Cash & Check vs. Electronic Payments MasterCard Share of Electronic Payments Investment Community Meeting
Slide 7: Three Key Influencers
Three Key Influencers Consumers B2B2C Governments & Opinion Leaders Local engagement with governments and merchants Technology Innovation and productivity Investment Community Meeting
Slide 8: Executing on the Strategy: Grow, Diversify, Build
Executing on the Strategy: Grow, Diversify, Build GROW Core Business • Investments in product capabilities and business development • Key wins in Credit, Commercial, Debit and Prepaid DIVERSIFY Geographies & Customers • WalMart prepaid cards • China Union Pay • UK public sector procurement wins • Po
Slide 9: Margins and Profitability
Margins and Profitability Deliver 50% plus operating margin annually Pursue efficiency in A&M, technology spend and G&A Use pricing selectively Invest in growth and innovation ©2011 MasterCard. Proprietary.
Slide 10: Long-Term Revenue Growth Opportunity
Long-Term Revenue Growth Opportunity Market Growth Growth from Strategic Investments Low to Mid-Teens Growth will come through both increased market share and “growing the pie” ©2011 MasterCard. Proprietary.
Slide 11: From Awareness to Preference: MasterCard Marketing
Alfredo Gangotena, Chief Marketing Officer September 15, 2011 From Awareness to Preference: MasterCard Marketing
Slide 12: Marketing Strategic Focus for Growth
Marketing Strategic Focus for Growth GROW Brand Preference • Revenues • Market Share DIVERSIFY New Segments and Markets • New Consumers • New Geographies BUILD Consumer Adoption • e-Commerce / Mobile • Social Media
Slide 13: Market Development
Market Development From Awareness to Preference Emerging Developing Mature Brand Awareness Awareness Preference Brand Preference Consumer Education Merchant Acceptance Build Issuer Card Penetration Brand Preference Increase Usage Card Activation Consumer Affection New Acceptance Cardholder Benefits
Slide 14: Priceless Campaign Evolution
Priceless Campaign Evolution Create Brand Preference with Stakeholders Brand Preference Priceless Experiences Product Benefits Consumer Affection Merchant Partnerships Issuer Growth ©2011 MasterCard. Proprietary.
Slide 15: Consumer Affection
Consumer Affection Connecting People to their Passions Celebrating products in advertising Experiences are more valuable than things Experiences Access Offers Delight consumers ©2011 MasterCard. Proprietary.
Slide 16: World Elite MasterCard
WORLD ELITE MASTERCARD
Slide 17: Consumer Affection: Priceless New York
Consumer Affection Connecting People to their Passions “Priceless New York” Experiences are more valuable than things - Launch: July 2011 - Shopping Dining Sports Music & Movies Arts & Culture Theater Attractions Travel ©2011 MasterCard. Proprietary.
Slide 18: Passion on a Tradition Priceless
PASSION ON A TRADITION PRICELESS
Slide 19: Consumer Affection: U.S. Priceless New York and World Elite
Consumer Affection U.S. – Priceless New York and World Elite Objective Preference Segments • Mass • Affluent Benefits • Priceless New York • Travel • Global Concierge (24/7) Results • “Family Meal” offers redeemed1 • 60% market share (among participating concessions)1 • Social: buzz, visits to Faceb
Slide 20: Merchant Partnerships: Great Singapore Sale
Merchant Partnerships Singapore – “Great Singapore Sale” Objective Increase Usage Segments • Mass • Affluent Benefits • 8th year of exclusive partnership • 120 merchants, 350 stores • Exclusive rewards Results • MasterCard volume lift: Domestic +49%; Cross-border +44%1 • Social: App downloads, shari
Slide 21: Issuer Growth: Canada PayPass Innovation
Issuer Growth Canada – PayPass Innovation Objective Top of Wallet Segment Mass Benefits • Extend to low-value payments • More acceptance locations • Faster checkout Results • Increased card spend by 24%1 • Increased transactions for issuers and sales for merchants • Expansion covering 36 markets to
Slide 22: Worldwide Advertising & Marketing Investment Efficiencies
Worldwide Advertising & Marketing Investment Efficiencies Global A&M Investment and Overall Brand Opinion1 Global A&M Investment Overall Brand Opinion 1000 $MM 500 2008 2009 2010 80% 75% 70% 65% 60% Maintained brand performance with decreased worldwide spend Efficiencies achieved through: • Advertis
Slide 23: Worldwide Advertising & Marketing Key Performance Metrics
Worldwide Advertising & Marketing Key Performance Metrics Transaction Frequency Brand use / spend Used Most Often Position in Wallet Net Promoter Score Brand opinion Brand recommendation
Slide 24: Worldwide Advertising & Marketing Growing Revenue
Worldwide Advertising & Marketing Growing Revenue Consumers Merchants Issuers Brand Preference Consumer Affection New Segments Partnerships New Acceptance Innovations New Markets ©2011 MasterCard. Proprietary.
Slide 25: A World Beyond Cash: Core Products
Tim Murphy Chief Product Officer A World Beyond Cash: Core Products ©2011 MasterCard. Proprietary.
Slide 26: Our Core Business
Our Core Business …enjoys healthy growth 1H 2011 GDV Growth Credit Consumer + 11.3% Commercial + 16.7% Prepaid + 16.1% Debit + 19.8% …with bright prospects 85% of global payment transactions are cash and checks Our ambition: Grow significantly faster than market ©2011 MasterCard. Proprietary.
Slide 27: Driving Growth
Driving Growth GROW DIVERSIFY BUILD Leverage market Diversify business with Expand selectively growth trends new consumers and across the value chain • Debit partners • Access Prepaid Worldwide • Prepaid • IPS Accelerate innovation • Cardholder Solutions • Consumer Credit • Commercial “Grow the Pie”
Slide 28: Grow: Leverage Market Growth Trends
Grow: Leverage Market Growth Trends Debit Multi-generational shift to electronic payments Debit is a natural replacement for cash Rising middle class in emerging markets fuels Debit growth Win with Issuers Accelerate Cash Conversion ©2011 MasterCard. Proprietary.
Slide 29: Grow: Leverage Market Growth Trends
Grow: Leverage Market Growth Trends Debit Win with Issuers Sovereign and Swedbank 8 million Cards $50+ billion annual GDV Promote Usage Drive spend with leading merchant coalition program, powered by MasterCard Investment Community Meeting
Slide 30: Grow: Accelerate Innovation
Grow: Accelerate Innovation Affluent Consumers 11% of population 0% 50% 100% 42% of PCE 0% 50% 100% Deliver New Products Focus on Innovative Features Investment Community Meeting
Slide 31: Grow: Accelerate Innovation
Grow: Accelerate Innovation Affluent Consumers Total Annual GDV Potential: $20+ billion ©2011 MasterCard. Proprietary.
Slide 32: Grow: Accelerate Innovation, Commercial
Grow: Accelerate Innovation Commercial CANADA 21% UNITED STATES 15% LATIN AMERICA 27% EUROPE 17% 1H 2011 GDV Growth APMEA 18% Capitalize on Differentiation Expand Procurement ©2011 MasterCard. Proprietary.
Slide 33: Grow: Accelerate Innovation, Commercial
Grow: Accelerate Innovation Commercial Won 12 of the largest U.K. public sector portfolios Investments in Smart Data and in Control driving procurement wins Exclusive for acquisition of small business cards in Chase branches Using insights to optimize profitable small business programs ©2011 MasterC
Slide 34: Diversify: New Consumers, New Partners
Diversify: New Consumers, New Partners Prepaid 2009 30% 70% Total $172B CAGR 18% U.S. 29% ROW U.S. ROW 2017 Total $840B 53% 47% Grow in consumer re loadable, public sector and commercial Capture more of the value chain Migrate non-branded volumes Source: BCG Prepaid Market Sizing Study, May 2010
Slide 35: Diversify: New Consumers, New Partners
Diversify: New Consumers, New Partners Prepaid – Financial Inclusion for Underserved 2.5 billion underserved adults worldwide Governments leading the way Public Sector Benefits Payroll State Benefits U.S. Egyptian Bank Co. (EBC) Payroll Egypt
Slide 36: Diversify: New Consumers, New Partners
Diversify: New Consumers, New Partners Prepaid – Spend Segmentation for the Banked Beyond the underserved, reaching new customers via… Retail Mobile WalMart My Card DiGi Simple Card U.S. Malaysia ©2011 MasterCard. Proprietary.
Slide 37: Build: New Businesses
Build: New Businesses Access Prepaid Worldwide £290 million acquisition closed April 2011 Provides critical program management capabilities Integration on plan Executing growth strategy ©2011 MasterCard. Proprietary.
Slide 38: Driving Growth
Driving Growth Executing on our Grow, Diversify, Build initiatives to gain share “Growing the Pie” of electronic payments Driving faster-than-market growth Investment Community Meeting
Slide 39: A World Beyond Plastic: Emerging Payments
Ed McLaughlin Chief Emerging Payments Officer A World Beyond Plastic: Emerging Payments ©2011 MasterCard. Proprietary.
Slide 40: Driving Growth through Innovation
Driving Growth through Innovation GROW Enhance Payments • PayPass • M/Chip EMV • Transit DIVERSIFY Expand Capabilities • inControl • Bill Pay • MoneySend • Offers and Redemption BUILD Extend Value Chain • DataCash • Mobile Payments Solutions (MPS) • Remote Payments • Mobile Money New consumer experi
Slide 41: Changing Consumer Experiences
Changing Consumer Experiences Established Emerging e/m- Commerce Remote Payments PC-based e-Commerce Internet connected devices Proximity Payments Card at Point of Sale PayPass at Point of Sale Mobile Money Cash Mobile Money Services September 15, 2011
Slide 42: Remote Payments
Remote Payments Connected Devices for Remote Payments Total Global Unit Shipments (MM) Tablets Smart Phones Notebook PCs Desktop PCs 1400 1200 1000 2009 2010 2011E 2012E 2013E Source: KPCB Top Mobile Internet Trends, Feb 2011 Easier to Use More Secure New Transactions Source: KPCB Top Mobile Interne
Slide 43: Remote Payments: DataCash Payments Gateway
Remote Payments DataCash Payments Gateway Gateway and Fraud Tools Growth Markets Foster Innovation DATACASH Investment Community Meeting
Slide 44: Proximity Payments: PayPass NFC
Proximity Payments PayPass NFC Payments for Smart Phones Enhanced Information Speed and Convenience Offers and Redemption Smartphone growth is transforming shopping and will accelerate PayPass adoption and expand merchant acceptance % of Total U.S. Phones Smart Phones NFC-Enabled 64% 48% 70% 60% 50%
Slide 45: Proximity Payments: PayPass-Enabled Mobile Wallets
Proximity Payments PayPass-Enabled Mobile Wallets Korea: SK Telecom and Samsung Card United Kingdom: Orange UK and Barclaycard Turkey: Turkcell and Yapi Kredi United States: Google, Citi and Sprint
Slide 46: Mobile Money Accelerating Globally
Mobile Money Mobile Money Accelerating Globally Reaching Banked and Underserved Consumers Number of Mobile Money Accounts (MM)2 Creating new ways to pay for existing MasterCard cardholders and addressing the needs of 2.5 billion global consumers1 who are underserved 107 199 326 499 684 807 2011 2012
Slide 47: Mobile Money: MPS Mobile Payments Gateway
Mobile Money MPS – Mobile Payments Gateway Mobile Money users access MasterCard open loop network Top Up MoneySend Payroll Public Sector Benefits Merchant Payments MoneySend Bill Payments Virtual Card Numbers Companion Card Investment Community Meeting
Slide 48: Mobile Money Solutions in Market
Mobile Money Mobile Money Solutions in Market Itaú and Vivo Tech Brazil Telefónica JV LAC Standard Chartered and Airtel Sub-Saharan Africa ©2011 MasterCard. Proprietary.
Slide 49: Emerging Payments
Emerging Payments Transforming consumer behavior globally Increasing electronic transactions and network reach Driving growth and preference for MasterCard Investment Community Meeting
Slide 50: Differentiated Services: MasterCard Advisors
Kevin Stanton President, MasterCard Advisors Differentiated Services: MasterCard Advisors ©2011 MasterCard. Proprietary.
Slide 51: Differentiated Professional Services
Differentiated Professional Services Data advantage Talent advantage Consulting Implementation Information New customers New places Increasing loyalty Full suite of complementary services drives growth for MasterCard and its customers ©2011 MasterCard. Proprietary.
Slide 52: Data Advantage
Data Advantage Anonymous Transactional • Actual • Real-time • Consumer / business spend Multi-sourced • 32 million merchants • 22,000 issuers Massive • 1.7 billion cards • 160 million transactions / hour Worldwide Available from few others Differentiation starts with data sourced from a massive worl
Slide 53: Unparalleled Data Advantage
Unparalleled Data Advantage Cleansed, aggregated, augmented • 700,000 automated rules • Continuously tested Warehoused • 1.3 petabytes • 5+ year historic global view • Rapid retrieval • Above-and-beyond privacy protection and security Transformed into actionable insights • Reports, indexes, benchmar
Slide 54: Worldwide Talent Advantage
Worldwide Talent Advantage TORONTO PURCHASE ST. LOUIS MIAMI MEXICO CITY WATERLOO LONDON WARSAW MOSCOW FRANKFURT ROME BUDAPEST MADRID ISTANBUL DUBAI MUMBAI TOKYO SHANGHAI HONG KONG SÃO PAULO BUENOS AIRES SINGAPORE SYDNEY In-house workforce leverages global and local expertise, executes in market and
Slide 55: Unmatched Capabilities
Unmatched Capabilities Generalist Consulting Consulting Information Implementation Generalist ©2011 MasterCard. Proprietary.
Slide 56: Deepening and Expanding Customer Base
Deepening and Expanding Customer Base Expanding Target Customers INFORMATION CONSULTING IMPLEMENTATION Relevant to an increasingly diverse customer base, leading with information services ©2011 MasterCard. Proprietary.
Slide 57: Financial Contribution and Mix
Financial Contribution and Mix Sources of financial contribution: Direct Revenue New / Expanded Deals Product Sales Volume Growth FY 2007 APMEA Europe U.S. LAC Canada APMEA Europe U.S. LAC Canada Evolving direct revenue mix by geography Contributes directly and indirectly to MasterCard’s financial p
Slide 58: Case Studies
Case Studies United States: Data-driven information services risk solution • Transaction variables improve risk model performance 15% • Results: Lender embeds Advisors solution into processes Europe: Consulting-led merchant loyalty program build • 1 million consumers, 20,000 merchant locations • Res
Slide 59: Advisors Advantage
Advisors Advantage Differentiated Assets • Data advantage • Talent advantage • Worldwide advantage Differentiated Services • Information • Consulting • Implementation Differentiated Results • Data-driven intelligence, strategy and implementation to advance commerce Delivers a competitive advantage t
Slide 60: High-Growth Market Opportunities: LAC and APMEA Regions
Richard Hartzell, President, Latin America & the Caribbean Vicky Binda, President, Asia Pacific / Middle East / Africa September 15, 2011 High-Growth Market Opportunities: LAC and APMEA Regions Investment Community Meeting
Slide 61: Latin America & the Caribbean Regional Overview
Latin America & the Caribbean Regional Overview Divisions 13 Offices Operational Statistics1 3-Year CAGR (2007-2010) GDV: 12% Cards: 8% GDV ($US B) Cards (MM) $158 $187 $179 $220 99 115 122 123 125 $100 $131 130 2007 2008 2009 2010 1H10 1H11 1 MasterCard-branded cards September 15, 2011
Slide 62: Asia Pacific Middle East Africa Regional Overview
Asia Pacific Middle East Africa Regional Overview 7 Divisions 24 Offices Operational Statistics1 3-Year CAGR (2007-2010) GDV: 21% Cards: 12% GDV ($US B) Cards (MM) $349 $422 $486 $619 $284 $374 207 241 268 294 281 313 2007 2008 2009 2010 1h10 1h11 1 MasterCard-branded cards 1 MasterCard-branded card
Slide 63: Focus on Growth
Focus on Growth Similar Objectives with Market-Specific Delivery Focus Areas for Growth • Acceptance • Processing / Switching • Innovation • Regulators • Financial Inclusion Key Imperatives • Drive consumer preference • Lead in Prepaid solutions • Implement emerging payments solutions, including mob
Slide 64: From Challenge to Growth: U.S. Markets
Chris McWilton President, U.S. Markets From Challenge to Growth: U.S. Markets ©2011 MasterCard. Proprietary.
Slide 65: U.S. Markets: Focused to Win
U.S. Markets: Focused to Win Strong business performance despite protracted economic recovery Significant deal momentum, particularly in Debit Strategically positioned as mobile payments unfold Developing resources to deal with growing, diverse customer base Well aligned with U.S. consumer trends In
Slide 66: Consistent, Strong Performance
Consistent, Strong Performance GDV 7.9% Growth $ Billions $600 $500 $400 $300 $200 $100 $- IH2010 IH2011 Debit $231 Debit $256 Credit Credit $247 $260 Processed Transactions 8.2% Growth 7,000 6,000 5,000 4,000 3,000 2,000 1,000 0 6,326 6,844 IH2010 IH2011 Net Revenue 12.5% Growth $1,400 $1,200 $1,00
Slide 67: Significant Deal Activity and Momentum
Significant Deal Activity and Momentum ©2011 MasterCard. Proprietary.
Slide 68: Strategically Positioned in Mobile
Strategically Positioned in Mobile Drive innovation in payments through partnerships and alliances across multiple industries Investment Community Meeting
Slide 69: Moving Beyond Durbin
Moving Beyond Durbin Reinforcing value Debit continues to provide Leveraging advantages of MasterCard signature and PIN debit offerings Operationalizing Fed rules to provide a competitive product and price Solidifying key acquirer and merchant partnerships Strategic, surgical approach Investment Com
Slide 70: U.S. Strategic Priorities: Debit
U.S. Strategic Priorities Debit The Opportunity • Cash & check currently represent 52% of U.S. transactions Strategic Imperatives • Winning signature deals • Winning PIN debit deals MasterCard Momentum • 2011 volume growth • New Debit product construct U.S. Debit Purchase Volume Growth 30% 20% 10% 0
Slide 71: U.S. Strategic Priorities: Prepaid
U.S. Strategic Priorities Prepaid The Opportunity • $442 billion market by 2017 Strategic Imperatives • Align against key segments • Launch expanded regulatory related activities • Grow new markets, customers and channels MasterCard Momentum • Progress across key verticals, with healthy pipeline • S
Slide 72: U.S. Strategic Priorities: Commercial
U.S. Strategic Priorities Commercial The Opportunity • Estimated $10 trillion segment Strategic Imperatives • Demonstrate differentiated product suite • Develop distinct needs-based solutions • Enhance issuer and end-customer performance MasterCard Momentum • Significant portfolio flips • Differenti
Slide 73: U.S. Strategic Priorities: Consumer Credit
U.S. Strategic Priorities Consumer Credit The Opportunity • Affluent families and international travelers Strategic Imperatives • Deliver compelling benefits • Enable extraordinary experiences • Integrated Marketing & Advisors support MasterCard Momentum • World Elite refresh • Priceless New York la
Slide 74: U.S. Strategic Priorities: Acceptance Channels
U.S. Strategic Priorities Acceptance Channels The Opportunity • Merchants and acquirers core to business portion of U.S. revenue Strategic Imperatives • Broaden focus on merchant proposition • Target high-yield vertical channels • Identify innovative partnership opportunities MasterCard Momentum • O
Slide 75: Well Aligned with Consumer Trends
Well Aligned with Consumer Trends Consumer Trend • Avoiding excessive borrowing • Wanting better control of their financial resources • Wary of large financial institutions • More technologically savvy • Increasing numbers of unbanked or underbanked MasterCard Response • Focus on Debit and Prepaid •
Slide 76: U.S. Markets: Focused to Win
U.S. Markets: Focused to Win Leveraging significant deal activity and momentum Exercising prudence in financial negotiations Investing in innovative products and solutions Focusing on both traditional and non-traditional customers Building, Growing and Diversifying revenue streams ©2011 MasterCard.
Slide 77: Financial Perspective
Martina Hund-Mejean Chief Financial Officer September 15, 2011 Financial Perspective Investment Community Meeting
Slide 78: Topics for Today
Topics for Today 2011 Outlook Capital Structure Considerations Long-Term Growth Opportunity Long-Term Performance Targets
Slide 79: Worldwide Gross Dollar Volume Growth
Worldwide Gross Dollar Volume (GDV) Growth Reported Processed 15.6% Processed 16.7% Local Growth % 20% 15% 10% 5% 0% 8.1% 10.9% 12.9% 16.4% 16.7% Q3’10 Q4’10 Q1’11 Q2’11 Jul/Aug ©2011 MasterCard. Proprietary.
Slide 80: U.S. Credit
U.S. Credit Gross Dollar Volume Growth Reported Processed 5.9% Processed 6.5% Local Growth % 10% 5% 0% -5% -0.9% 2.4% 4.9% 5.3% 6.5% Q3’10 Q4’10 Q1’11 Q2’11 Jul/Aug Investment Community Meeting
Slide 81: U.S. Debit
U.S. Debit Gross Dollar Volume Growth Reported Processed 16.8% Processed 20.1% Local Growth % 25% 20% 15% 10% 5% 0% -5% Q3’10 Q4’10 Q1’11 Q2’11 Jul/Aug -3.7% 1.4% 6.9% 15.1% 20.1% Investment Community Meeting
Slide 82: Rest of World
Rest of World Gross Dollar Volume Growth Reported Processed 22.4% Processed 22.5% Local Growth % 25% 20% 15% 10% 5% 0% Q3’10 Q4’10 Q1’11 Q2’11 Jul/Aug 14.5% 16.1% 16.9% 19.9% 22.5% Investment Community Meeting
Slide 83: Worldwide Processed Transactions
Worldwide Processed Transactions Local Growth % 24% 16% 8% 0% Q3’10 Q4’10 Q1’11 Q2’11 Jul/Aug 0.6% 6.3% 11.1% 17.4% 20.3% ©2011 MasterCard. Proprietary.
Slide 84: Worldwide Cross-Border Volume Growth
Worldwide Cross-Border Volume Growth Local Growth % 25% 20% 15% 10% 5% 0% Q3’10 Q4’10 Q1’11 Q2’11 Jul/Aug 15.4% 18.7% 18.5% 19.3% 19.3% ©2011 MasterCard. Proprietary.
Slide 85: 2011 Financial Outlook
2011 Financial Outlook Net Revenue • Diminishing impact of deconversions in 2nd half • DataCash acquisition to lap in 4Q • Full year net tailwind of 2-3 ppt from Euro / Real FX Operating Expenses • Small operating margin expansion • Continue to invest in strategic areas • Acquisitions will have a di
Slide 86: Capital Structure Considerations Guiding Principles
Capital Structure Considerations Guiding Principles Strong Balance Sheet Long-Term Business Growth Return Excess Cash • Preserve strong balance sheet, liquidity and credit ratings • $3.6 billion of cash as of June 30, 2011 with no debt • Available debt capacity, though remain mindful of outstanding
Slide 87: Liquidity
Liquidity $7 $6 $5 $4 $3 $2 $1 $0 $ Billions $3.6 $2.8 ($3.0) ($0.9) $2.5 Cash Balance (as of 6/30/2011) Available Revolver Capacity Operational Settlement Exposure Share Repurchase* Excess Liquidity * Amount remaining to be executed under announced share repurchase programs.
Slide 88: Three Drivers of Growth
Three Drivers of Growth Personal Consumption Expenditure • Emerging market growth Cash & Check vs. Electronic Payments • Cash to electronic form • Financial inclusion • Increasing acceptance footprint • Public sector MasterCard Share of Electronic Payments • Winning deals globally • Non-traditional
Slide 89: Continued Secular Shift to Electronic Payments Offers Great Opportunity
Continued Secular Shift to Electronic Payments Offers Great Opportunity Personal Consumption Expenditure (PCE) Electronic – Cards EFT Cash & Checks $27T 23% 12% 65% $37T 30% 14% 56% $50T 40% 16% 44% 2005 2010 2015E 2010 – 2015E (CAGR) Global PCE 6% Electronic—Cards 10-12% EFT 10% Cash & Checks 2% Il
Slide 90: Long-Term Revenue Growth
Long-Term Revenue Growth 2010-2015E CAGR (in %) 6% Secular Growth 4-6% 10-12% (1%) MA Mix 9-11% Strategic Investments Low-Mid Teens% Global PCE Industry Purchase Volume MA Market Momentum MasterCard Long-Term Revenue Source: EIU, Euromonitor and MasterCard Internal Estimates ©2011 MasterCard. Propri
Slide 91: Strategic Investments Support Long-Term Revenue Objective
Strategic Investments Support Long-Term Revenue Objective in a Competitive Market GROW Core Business • Investing in Debit, Commercial and Prepaid • Capture a larger share of the value chain DIVERSIFY Geographies & Customers • Build relationships with new partners: – Public sector – Retailers – Telec
Slide 92: Longer-Term: 2011-2013 Performance Objectives
Longer-Term 2011 – 2013 Performance Objectives On a constant currency basis Net Revenue Growth 12-14% CAGR Operating Margin Minimum 50% annually Earnings Per Share Growth Rate 20%+ CAGR
Slide 93: MasterCard Investment Community Meeting
MasterCard ‘September 15, 2011 Worldwide Investment Community Meeting (©2011 MasterCard, Proprietary,
Slide 94: Product Demos and Experience
Product Demos and Experience
Slide 95: Ajay Banga: Closing Comments
Ajay Banga President and Chief Executive Officer Closing Comments
Slide 96: Our Focus
Our Focus Use technology and innovation – powered by our people, insights and expertise – to grow the payments space and our presence within it Execute through the grow, diversify, build roadmap Deliver on our commitments Investment Community Meeting
Slide 97: MasterCard Worldwide
MasterCard Worldwide The Heart of Commerce