Slide 1: MasterCard Second-Quarter 2012 Financial Results Conference Call
MasterCard Incorporated Second-Quarter 2012 Financial Results Conference Call August 1, 2012
Slide 2: Business Update
Business Update • Operational Overview • Economic Update • Business Highlights
Slide 3: 2nd Quarter Selected Financial Performance
2nd Quarter Selected Financial Performance ($ in millions, except per share data) 2Q 12 Non-GAAP YOY excl. special item* 2Q 11 Growth Net revenue $ 1,820 $ 1,667 9% Total operating expenses 826 782 6% Operating income 994 885 12% Operating margin 54.6% 53.1% 1.5 ppts Net income $ 713 $ 608 17% Dilut
Slide 4: Gross Dollar Volume (GDV)
2nd Quarter Gross Dollar Volume (GDV) ($ in billions) $1,100 $1,000 $900 $800 $700 $600 $500 $400 $300 $200 $100 $0 Worldwide 15% Growth $813 $325 $488 $890 $368 $522 2Q 11 2Q 12 United States 9% Growth $267 $130 $137 2Q 11 $291 $149 $142 2Q 12 Rest of World 19% Growth $546 $195 $351 $599 $219 $380
Slide 5: Processed Transactions and Cards
2nd Quarter Processed Transactions and Cards Processed Transactions 29% Growth 9,000 8,000 7,000 6,000 5,000 4,000 3,000 2,000 1,000 0 Transactions (in millions) 6,601 2Q 11 8,537 2Q 12 Cards 9% Growth Cards (in millions) 2,000 1,800 1,600 1,400 1,200 1,000 800 600 400 200 0 1,692 1,014 2Q 11 1,836
Slide 6: Revenue
2nd Quarter Revenue ($ in millions) 2Q 11 2Q 12 $2,000 $1,500 $1,000 $500 $0 -$500 -$1,000 -$1,500 $809 $893 $511 $566 $630 $753 $251 $269 $1,667 $1,820 ($534) $661) Domestic Assessments Cross-Border Volume Fees Transaction Processing Fees Other Revenues Rebates and Incentives Total Net Revenue +10%
Slide 7: Operating Expenses
2nd Quarter Operating Expenses ($ in millions) $1,000 $800 $600 $400 $200 $0 $540 $591 General & Administrative +10% 2Q 11 2Q 12 $193 $179 Advertising & Marketing (7%) $49 $56 Depreciation & Amortization +13% $782 $826 Total Operating Expenses +6% +9% Constant Currency Note: Figures may not sum due
Slide 8: Thoughts for the Future
Thoughts for the Future Business update through July 28 Thoughts for 2012 Net Revenue Total Operating Expenses Tax Rate Long-term financial objectives
Slide 9: MasterCard Worldwide: The Heart of Commerce
MasterCard Worldwide The Heart of Commerce”
Slide 10: Appendix: GAAP Reconciliation
Appendix GAAP Reconciliation ($ in millions, except per share data) Three Months Ended Three Months Ended June 30, 2012 June 30, 2011 Actual Special Item Non -GAAP Actual Provision for litigation settlement $ 20 $ (20) $—$ - Total operating expenses 846 (20) 826 782 Operating income 974 20 994 885 O