Visa Inc. · NYSE:V
Visa — Q2 2013 Earnings Presentation
20 slides from Visa's earnings presentation, May 1, 2013
Slide 1: Visa Inc. Fiscal Second Quarter Financial Results
Visa Inc. Fiscal Second Quarter Financial Results May 1, 2013
Slide 2: Forward-Looking Statements
Forward-Looking Statements This presentation contains forward−looking statements within the meaning of the U.S. Private Securities Litigation Reform Act of 1995. These statements can be identified by the terms "believe," "continue," “expect," and similar references to the future. Examples of such fo
Slide 3: Solid Fiscal Second Quarter Results
Solid Fiscal Second Quarter Results • Strong operating revenues of $3.0 billion, up 15% over prior year • Quarterly net income of $1.3 billion and diluted earnings per share of $1.92, up 17% and 20%, respectively, over prior year adjusted results • Repurchased 12 million shares of class A common sto
Slide 4: Payments Volume
Payments Volume US$ in billions, nominal, except percentages Quarter ended December 2011 ROW = Rest of World 2012 1,074 993 U.S. U.S. 687 529 545 616 U.S. U.S. 237 262 377 387 ROW ROW U.S. U.S. 464 529 ROW ROW 292 282 379 424 ROW 85 ROW 105 Total Visa Inc. Credit Debit YOY Change (nominal) 8% 12% 3%
Slide 5: Payments Volume
Payments Volume US$ in billions, nominal, except percentages Quarter ended March Note: Current quarter payments volume and other select metrics are provided in the operational performance data supplement to provide more recent operating data. Service revenues continue to be recognized based on payme
Slide 6: Payments Volume
Payments Volume US$ in billions, nominal, except percentages Quarter ended December 2011 2012 529 545 313 276 93 103 56 62 39 51 United States Asia Pacific Latin America and Canada Central and Eastern Caribbean Europe, Middle East and Africa YOY Change (nominal) 3% 13% 11% 11% 30% YOY Change (consta
Slide 7: Payments Volume
Payments Volume US$ in billions, nominal, except percentages Quarter ended March Note: Current quarter payments volume and other select metrics are provided in the operational performance data supplement to provide more recent operating data. Service revenues continue to be recognized based on payme
Slide 8: Transactions
Transactions in millions, except percentages Quarter ended March 2012 2013 20,620 19,633 Credit Credit 36% 37% 13,850 13,038 Debit Debit 64% 63% Total Processed Transactions Transactions YOY 5% 6% Change Note: Processed transactions represent transactions involving Visa, Visa Electron, Interlink and
Slide 9: Total Cards
Total Cards in millions, except percentages Quarter ended December 2011 2012 2,128 1,974 1,333 1,195 779 795 Credit Debit Visa Inc. YOY Change 2% 12% 8% Note: From time to time, previously submitted card information may be updated. Prior period updates are not material. Figures may not recalculate e
Slide 10: Revenue – Q2 2013
Revenue – Q2 2013 US$ in millions, except percentages Fiscal 2012 Fiscal 2013 3,525 3,075 2,958 2,578 (497) (567) Gross Revenues Incentives Net Operating Revenues YOY Change 15% 14% 15% FY13 % of Gross Revenues 16% 84% Note: Figures may not recalculate exactly due to rounding. Percentage changes are
Slide 11: Revenue Detail – Q2 2013
Revenue Detail – Q2 2013 US$ in millions, except percentages Fiscal 2012 Fiscal 2013 1,369 1,241 1,150 922 831 733 179 175 Service Data Processing International Other Revenues Revenues Revenues Transaction Revenues YOY Change 10% 25% 13% (2)% Note: Figures may not recalculate exactly due to rounding
Slide 12: Operating Margin – Q2 2013
Operating Margin – Q2 2013 US$ in millions, except percentages Fiscal 2012 Fiscal 2013 2,958 2,578 63% 62% 1,860 1,606 1,098 972 Net Operating Total Operating Operating Operating Revenues Expenses Income Margin YOY Change 15% 13% 16% 1 ppt Note: Operating margin is calculated as operating income div
Slide 13: Operating Expenses – Q2 2013
Operating Expenses – Q2 2013 US$ in millions, except percentages Fiscal 2012 Fiscal 2013 486 431 195 170 119 106 108 103 91 98 82 80 0 1 Personnel Marketing Network & Professional Depreciation & General & Litigation Processing Fees Amortization Administrative Provision YOY Change 13% 15% 16% 11% 21%
Slide 14: Other Financial Results
Other Financial Results • Cash, cash equivalents and available-for-sale investment securities of $5.6 billion at the end of the fiscal second quarter • Free cash flow of $1.5 billion for the fiscal second quarter • Capital expenditures of $111 million during the fiscal second quarter Fiscal Second Q
Slide 15: Financial Metrics for Fiscal Year 2013
Financial Metrics for Fiscal Year 2013 Low double Annual net revenue growth digits 16% to 17% Client incentives as % of gross revenues range Under $1 Marketing expenses billion Annual operating margin About 60% Fiscal Second Quarter 2013 Financial Results 15
Slide 16: Financial Metrics for Fiscal Year 2013
Financial Metrics for Fiscal Year 2013 30% to 32% Tax rate range Adjusted annual diluted class A common stock Around 20% earnings per share growth $425 million to Capital expenditures $475 million range About $6 Annual free cash flow billion Fiscal Second Quarter 2013 Financial Results 16
Slide 17: Appendix
VISA Appendix
Slide 18: Reconciliation of Non-GAAP Financial Results
Reconciliation of Non-GAAP Financial Results US$ in millions, except percentages and per share data Our reported financial results for the three months ended March 31, 2012 benefited from a one-time non-cash adjustment of $208 million related to the remeasurement of our net deferred tax liabilities
Slide 19: Calculation of Free Cash Flow
Calculation of Free Cash Flow US$ in millions Additions (+) / Reductions (-) to Net income attributable to Three Months Ended Six Months Ended Visa Inc. March 31, 2013 March 31, 2013 Net income attributable to Visa Inc. (as reported) 1,270 2,563 Capital Assets + Depreciation and amortization 98 190
Slide 20: Chase Merchant Services (CMS)
Chase Merchant Services (CMS) • 10 year renewable partnership • Creating a distinct custom platform within VisaNet for the processing of Chase Merchant Services (CMS) transactions; This image of Visa’s authorization, clearing and settlement system will be licensed to Chase and exclusively for their