Visa Inc. · NYSE:V
Visa — Q1 2013 Earnings Presentation
18 slides from Visa's earnings presentation, Feb 6, 2013
Slide 1: Visa Inc. Fiscal First Quarter Financial Results
Visa Inc. Fiscal First Quarter Financial Results February 6, 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 First Quarter Results
Solid Fiscal First Quarter Results • Strong operating revenues of $2.8 billion, up 12% over prior year • Quarterly net income of $1.3 billion, up 26%, and diluted earnings per share of $1.93, up 30% over prior year • Repurchased 9 million shares of class A common stock in the open market at an avera
Slide 4: Payments Volume
Payments Volume US$ in billions, nominal, except percentages Quarter ended September 2011 ROW = Rest of World 2012 1,008 971 U.S. U.S. 517 521 642 598 U.S. U.S. 229 250 373 366 ROW ROW U.S. U.S. 454 487 ROW ROW 288 271 369 392 ROW 85 ROW 95 Total Visa Inc. Credit Debit YOY Change (nominal) 4% 7% (2%
Slide 5: Payments Volume
Payments Volume US$ in billions, nominal, except percentages 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 based on pa
Slide 6: Payments Volume
Payments Volume US$ in billions, nominal, except percentages Quarter ended September 2011 2012 517 521 272 290 89 92 56 57 37 47 United States Asia Pacific Latin America and Canada Central and Eastern Caribbean Europe, Middle East and Africa YOY Change (nominal) 1% 6% 4% 3% 27% YOY Change (constant)
Slide 7: Payments Volume
Payments Volume US$ in billions, nominal, except percentages 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 based on pa
Slide 8: Transactions
Transactions in millions, except percentages Quarter ended December 2011 2012 21,553 20,348 Credit Credit 36% 38% 13,600 14,159 Debit Debit 64% 62% Total Processed Transactions Transactions YOY 6% 4% Change Note: Processed transactions represent transactions involving Visa, Visa Electron, Interlink
Slide 9: Total Cards
Total Cards in millions, except percentages Quarter ended September 2011 2012 2,081 1,930 1,293 1,157 774 788 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
Slide 10: Revenue – Q1 2013
Revenue – Q1 2013 US$ in millions, except percentages Fiscal 2012 Fiscal 2013 3,399 3,028 2,846 2,547 (481) (553) Gross Revenues Incentives Net Operating Revenues YOY Change 12% 15% 12% FY13 % of Gross Revenues 16% 84% Note: Figures may not recalculate exactly due to rounding. Percentage changes cal
Slide 11: Revenue Detail – Q1 2013
Revenue Detail – Q1 2013 US$ in millions, except percentages Fiscal 2012 Fiscal 2013 1,300 1,151 1,115 951 748 805 178 179 Service Data Processing International Other Revenues Revenues Revenues Transaction Revenues YOY Change 13% 17% 8% 1% Note: Figures may not recalculate exactly due to rounding. P
Slide 12: Operating Margin – Q1 2013
Operating Margin – Q1 2013 US$ in millions, except percentages Fiscal 2012 Fiscal 2013 2,846 2,547 64% 63% 1,800 1,618 1,046 929 Net Operating Total Operating Operating Operating Revenues Expenses Income Margin YOY 12% 13% 11% (1 ppt) Change Note: Operating margin is calculated as operating income d
Slide 13: Operating Expenses – Q1 2013
Operating Expenses – Q1 2013 US$ in millions, except percentages Fiscal 2012 454 Fiscal 2013 389 190 193 98 110 88 92 102 106 70 80 0 3 Personnel Marketing Network Professional Fees Depreciation General Litigation & & & Provision Processing Amortization Administrative YOY Change 17% 2% 12% 25% 16% 4
Slide 14: Other Financial Results
Other Financial Results • Cash, cash equivalents and available-for-sale investment securities of $6.1 billion at the end of the fiscal first quarter • Free cash flow of $1.6 billion for the fiscal first quarter • Capital expenditures of $100 million during the fiscal first quarter • During the quart
Slide 15: Financial Metrics for Fiscal Year 2013
Financial Metrics for Fiscal Year 2013 Low double Annual net revenue growth digits 18% to 18.5% Client incentives as % of gross revenues range Under $1 Marketing expenses billion Adjusted annual operating margin About 60% Fiscal First 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 High teens earnings per share growth $425 million to Capital expenditures $475 million range About $6 Annual free cash flow billion Fiscal First Quarter 2013 Financial Results 16
Slide 17: Appendix: Reconciliation of Non-GAAP Measures
Appendix Reconciliation of Non-GAAP Measures
Slide 18: Calculation of Free Cash Flow
Calculation of Free Cash Flow US$ in millions Additions (+) / Reductions (-) to Net income attributable to Three Months Ended Visa Inc. December 31, 2012 Net income attributable to Visa Inc. (as reported) 1,293 Capital Assets + Depreciation and amortization 92 - Capital expenditures (100) (8) Litiga