Visa Inc. · NYSE:V
Visa — Q1 2012 Earnings Presentation
18 slides from Visa's earnings presentation, Feb 8, 2012
Slide 1: Visa Inc. Fiscal First Quarter Financial Results
Visa Inc. Fiscal First Quarter Financial Results February 8, 8 2012
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 “expect,” “will,” “continue” and similar references to the future. Examples of such forwar
Slide 3: Solid Fiscal First Quarter Results
Solid Fiscal First Quarter Results • Strong operating revenues of $2.5 billion, up 14% over prior year • Quarterly net income of $1.0 billion, up 16%, and diluted earnings per share of $ $1.49,, up p 21% over p prior yyear • Total as-converted class A common stock was reduced byy 16.2 million shares
Slide 4: Payments Volume
Payments Volume US$ $ in billions,, nominal,, except p ppercentages g Quarter ended September 2010 ROW = Rest of World 2011 971 829 U.S. U.S. 473 517 598 502 U.S. U.S. 229 373 207 327 ROW ROW U.S. U S U.S. U S 356 454 ROW ROW 266 288 295 369 ROW 61 ROW 85 Total Visa Inc. Credit Debit YOY Change (nom
Slide 5: Payments Volume
Payments Volume US$ $ in billions,, nominal,, except p ppercentages g Quarter ended December 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 ba
Slide 6: Payments Volume
Payments Volume US$ $ in billions,, nominal,, except p ppercentages g Quarter ended September 2010 2011 517 473 272 212 68 89 49 56 37 27 United States Asia Pacific Latin America and Canada Central and Caribbean Eastern Europe, Middle East and Africa YOY Change (nominal) 9% 28% 30% 15% 39% YOY Chang
Slide 7: Payments Volume
Payments Volume US$ $ in billions,, nominal,, except p ppercentages g Quarter ended December 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 ba
Slide 8: Transactions
Transactions in millions,, except p ppercentages g Quarter ended September Quarter ended December 2010 2011 19,808 20,339 18,149 18,845 Credit Credit Credit Credit 36% 36% 13,263 Credit 13,600 35% 36% 12,119 c 12,580 35% Debit Debit Debit D bit Debit 65% 64% 64% 64% Total Transactions Processed Tota
Slide 9: Total Cards
Total Cards in millions,, except p ppercentages g Quarter ended September 2010 2011 1,850 1,930 1,081 1,157 770 774 Credit Debit Visa Inc. YOY Change 0% 7% 4% Note: From time to time, previously submitted card information may be updated. Prior year card information presented has not been updated, as
Slide 10: Revenue – Q1 2012
Revenue – Q1 2012 US$ in millions,, except p ppercentages g Fiscal 2011 Fiscal 2012 3,028 2 643 2,643 2 547 2,547 2,238 (405) (481) Gross Revenues Incentives Net Operating Revenues YOY Change 15% 19% 14% FY12 % of Gross Revenues 16% 84% Note: Growth rates and percentage of gross revenues calculated
Slide 11: Revenue Detail – Q1 2012
Revenue Detail – Q1 2012 US$ $ in millions,, except p ppercentages g Fiscal 2011 Fiscal 2012 1,151 1,008 951 844 748 630 161 178 Service Data Processing International Other Revenues Revenues Revenues Transaction Revenues YOY Change 14% 13% 19% 11% Note: Growth rates calculated based on whole numbers
Slide 12: Operating Margin – Q1 2012
Operating Margin – Q1 2012 US$ $ in millions,, except p ppercentages g Fiscal 2011 Fiscal 2012 2,547 2,238 61% 64% 1,618 1,366 872 929 Net Operating Total Operating Operating Operating Revenues Expenses Income Margin YOY Change 14% 7% 18% 3 ppts Note: Growth rates calculated based on whole numbers,
Slide 13: Operating Expenses – Q1 2012
Operating Expenses – Q1 2012 US$ $ in millions,, except p ppercentages g Fiscal 2011 Fiscal 2012 389 357 197 190 98 110 102 80 70 80 61 67 Personnel Network Marketing Professional Fees Depreciation General and Processing and Amortization and Administrative YOY Change 9% 24% (4%) 16% 18% (7%) Note: G
Slide 14: Other Financial Results
Other Financial Results • Cash, cash equivalents, restricted cash, and available-for-sale investment securities of $7 $7.9 9 billion at the end of the fiscal first quarter quarter, which includes $4.4 billion of restricted cash in the litigation escrow account • Free cash flow of $1.4 $ billion for
Slide 15: Financial Metrics for Fiscal Year 2012
Financial Metrics for Fiscal Year 2012 Annual net revenue growth Low double digits 17% to 18% Client incentives as % of gross revenues range Under Marketing expenses $1 billion Annual operating margin About 60% First Quarter Fiscal 2012 Financial Results 15
Slide 16: Financial Metrics for Fiscal Year 2012
Financial Metrics for Fiscal Year 2012 33% to 34% Adjusted tax rate* range Adjusted annual diluted class A common stock High teens earnings g pper share g growth $350 million to Capital expenditures $400 million range Greater than Annual free cash flow $4 billion *Excludes the impact of possible non
Slide 17: Appendix: Reconciliation of Non-GAAP Measures
Appendix Reconciliation of Non-GAAP Measures
Slide 18: Calculation of Free Cash Flow
Calculation of Free Cash Flow US$ in millions Additions (+) / Reductions (-) to Net income attributable to Three Months Ended US$ in millions Visa Inc. December 31, 2011 Net income attributable to Visa Inc. (as reported) 1,029 Capital Assets + Depreciation and amortization 80 - Capital expenditures