Slide 1: Mastercard Incorporated Third-Quarter 2020 Financial Results Conference Call
Mastercard Incorporated Third-Quarter 2020 Financial Results Conference Call October 28, 2020
Slide 2: Business Update
Business Update Key Trends Business Highlights Financial Overview ©2020 Mastercard October 28, 2020 2
Slide 3: 3rd Quarter Selected Financial Performance
3rd Quarter Selected Financial Performance ($ in millions, except per share data) YOY Growth 3Q 20 3Q 19 Currency Non-GAAP Non-GAAP As adjusted Neutral Net revenue $ 3,837 $ 4,467 (14)% (14)% Adjusted operating expenses 1,732 1,812 (4)% (5)% Adjusted operating income 2,105 2,655 (21)% (20)% Adjusted
Slide 4: 3rd Quarter Gross Dollar Volume (GDV)
3rd Quarter Gross Dollar Volume (GDV) ($ in billions) Worldwide United States Rest of World 1% Growth 4% Growth Flat Growth $1,652 $1,648 $1,800 $1,600 $1,400 $1,159 $1,135 $1,200 $831 $911 $1,000 $800 $582 $612 $493 $513 $600 $400 $821 $737 $249 $299 $577 $523 $200 $244 $214 $0 3Q19 3Q20 3Q19 3Q20
Slide 5: 3rd Quarter Switched Transactions and Cards
3rd Quarter Switched Transactions and Cards Switched Transactions Cards 5% Growth* 5% Growth 4,000 30 23.8 3,000 Transactions (in billions) 2,692 Cards (in millions) 22.9 2,574 418 20 435 2,000 10 2,139 2,275 1,000 0 0 3Q19 3Q20 3Q19 3Q20 ©2020 Mastercard Mastercard Cards Maestro Cards Notes: Figure
Slide 6: 3rd Quarter Revenue
3rd Quarter Revenue ($ in millions) 3Q19 3Q20 $5,000 $4,467 $3,837 $4,000 $3,000 $2,231 $2,251 $2,000 $1,722 $1,750 $1,517 $1,087 $1,143 $1,000 $791 $0 $-1,000 $-2,000 $(2,090) $(2,098) $-3,000 Domestic Cross-Border Transaction Other Rebates and Growth Assessments Volume Fees Processing Revenues Inc
Slide 7: 3rd Quarter Adjusted Operating Expenses
3rd Quarter Adjusted Operating Expenses ($ in millions) 3Q19 3Q20 $2,000 $1,812 $1,732 $1,500 $1,448 $1,423 $1,000 $500 $227 $168 $137 $141 $0 Growth General & Administrative Advertising & Marketing Depreciation & Amortization Adjusted Operating Expenses Non-GAAP (2)% (26)% 3% (4)% Currency-neutral
Slide 8: Business Update Through October 21
st Business Update Through October 21 year-over-year growth % July 1 August 1 September1 Week ending Week ending Week ending Full Month Full Month Full Month October 7 October 14 October 21 2 Switched volume 2% 2% 3% 3% 2% 5% United States 6% 4% 6% 6% 3% 8% Worldwide less U.S. (3)% 1% —% 1% 1% 3% 3
Slide 9: Cross-border Volume Trends
Cross-border Volume Trends Card not present (Non-travel) Card not present Total Card present 60% 40% 20% 0% -20% -40% -60% -80% -100% ©2020 Mastercard 1 JAN FEB MAR APR MAY JUN JUL AUG SEPT OCT 1. Through October 21st MTD Note: Cross-border volume growth is calculated in a manner as defined in our S
Slide 10: Looking Ahead
Looking Ahead Further thoughts ©2020 Mastercard October 28, 2020 10
Slide 11: Appendices
Appendices
Slide 12: Non-GAAP Reconciliation (Appendix A)
Appendix A Non-GAAP Reconciliation ($ in millions, except per share data) Three Months Ended September 30, 2020 Operating Operating Operating Other Income Effective income Diluted earnings expenses income margin (Expense) tax rate Net income per share Reported - GAAP $ 1,732 $ 2,105 54.9 % $ (190) 2
Slide 13: Non-GAAP Reconciliation (Appendix A continued)
Appendix A (continued) Non-GAAP Reconciliation Three Months Ended September 30, 2020 as compared to the Three Months Ended September 30, 2019 Increase/(Decrease) Operating Operating Operating Effective income Diluted earnings Net revenue expenses income margin tax rate Net income per share Reported
Slide 14: Non-GAAP Reconciliation (Appendix B)
Appendix B Non-GAAP Reconciliation Fourth quarter 2020 operating expenses outlook Q4'20 vs. Q4'19 Increase/(Decrease) 1 Forecasted Growth - GAAP Low-single-digits Litigation provisions ** Non-GAAP Growth Low-single-digits 2 Currency impact (0-1)% 3 Acquisitions (4-5)% Non-GAAP Growth, currency neutr
Slide 15: Non-GAAP Reconciliation (Appendix C)
Appendix C Non-GAAP Reconciliation ($ in millions) Twelve Months Ended December 31, 2019 2009 Net income Net income Reported - GAAP $ 8,118 $ 1,463 1 (Gains) losses on equity investments (124) ** 2 Tax act (57) ** 3 Litigation provisions ** 4 Non-GAAP $ 7,937 $ 1,467 Note: Figures may not sum due to