Slide 1: MasterCard's Acquisition of Travelex's Prepaid Card Program Management
MasterCard's M t C d' Acquisition A i iti off Travelex's T l ' Prepaid Card Program Management Conference Call December 9, 2010
Slide 2: Forward-Looking Statements
F Forward-Looking d L ki Statements St t t Statements in this presentation that are not historical facts, including statements about MasterCard’s proposed acquisition of the Card Program Management operations of Travelex as well as plans about strategies, beliefs and expectations, are “forward-looki
Slide 3: Acquisition of Prepaid Card Program Management
Acquisition of Prepaid Card Program M Management t • Acquisition of the card program management operations from Travelex – Global footprint – Leading cardholder services – S Specialized i li d expertise ti • Agreement expands and extends our previous relationship with Travelex – Now offers p prepaid
Slide 4: The Strategic Opportunity
The Strategic Opportunity • Advances MasterCard’s leadership position in the prepaid segment – Projected to grow at 20+% CAGR to $840 billion by 2017* • Provides MasterCard the ability to provide customers and partners end-to-end or modular solutions to augment their capabilities • The prepaid card
Slide 5: Open Loop Prepaid Card Value Chain
Open Loop Prepaid Card Value Chain Typical Role Examples • Consumer relationships Walmart, HR Block, Distributor • Card distribution; Channel management Direct Express, Poste • Activation; Reload; Funds Transfer Italiane, Travelex • General contractor for card design and production netSpend, Travele
Slide 6: Card Program Management Overview
Card Program Management Overview • Global prepaid card program manager of consumer and corporate prepaid travel cards • Revenues of ₤36 million through 9/30/10 driven from commissions, currency exchange and card usage • Unique capabilities include: – Global footprint: Program management expertise ac
Slide 7: A Good Strategic Fit
A Good Strategic Fit • Advances MasterCard’s vision to be the global leader in prepaid, especially within the high-growth cross-border segment • Provides multi-country infrastructure to accelerate prepaid market entry and growth in emerging markets • Flexibility to provide modular assets to support
Slide 8: Financial Considerations
Financial Considerations • Purchase price of ₤290 million, with an earn-out of up to an additional ₤35 million if certain performance targets are met • Transaction financed using available cash with expected closing in th first the fi t half h lf off 2011 • Expected financial impact – FY2011: approx
Slide 9: MasterCard
MasterCard Worldwide The Heart of Commerce”