Visa Inc. · NYSE:V
Visa — Q3 2009 Earnings Presentation
19 slides from Visa's earnings presentation, Jul 29, 2009
Slide 1: Visa Inc. Fiscal Third Quarter 2009 Financial Results
Visa Inc. Fiscal Third Quarter 2009 Financial Results July 29, 2009
Slide 2: Safe Harbor Reminder
Safe Harbor Reminder • Certain statements contained in this press release are forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, which are subject to the “safe harbor” created by
Slide 3: Solid Fiscal Third Quarter Results
Solid Fiscal Third Quarter Results • Adjusted quarterly net income of $744 million or adjusted diluted earnings of $0.98 per share • Sale of equity interest in VisaNet do Brasil resulting in a $237 million, after tax, gain contributing $0.31 to adjusted diluted earnings per share • Adjusted quarterl
Slide 4: Payments Volume
Payments Volume – Q3 2009 US$ in billions, nominal Quarter ended March 2008 $652 $617 2009 $424 U.S. U.S. $380 $388 $379 U.S. U.S. $195 $176 $236 $228 U.S. U.S. ROW ROW ROW ROW $193 $202 $264 $238 $229 $204 ROW $35 ROW $34 Total Visa Inc. Credit Debit YOY Change -5% -10% 4% (nominal) YOY Change (con
Slide 5: Payments Volume Regional
Payments Volume – Q3 2009 Regional US$ in billions, nominal Quarter ended March 2008 $388 $379 2009 $159 $147 $46 $42 $41 $32 $17 $17 United States Asia Pacific (AP) Latin America and Canada Central and Eastern Caribbean (LAC) Europe, Middle East and Africa (CEMEA) YOY Change (nominal) -3% -8% -9% -
Slide 6: Transactions
Transactions – Q3 2009 in millions Quarter ended March Quarter ended June 2008 14,305 2009 13,149 2008 2009 Credit 10,266 9,473 37% Debit 63% Total Transactions Processed Transactions YOY 9% 8% Change Note: Processed transactions represent transactions involving Visa, Visa Electron, Interlink and Pl
Slide 7: Total Cards
Total Cards in millions Quarter ended March 2008 2009 1,723 1,620 925 814 798 806 Credit Debit Visa Inc. YOY -2% 15% 6% Change Fiscal Q3 2009 Earnings Results 7
Slide 8: Revenue Detail
Revenue Detail – Q3 2009 US$ in millions 2008 2009 $1,990 $1,887 $1,613 $1,646 Gross Net Operating Revenues Revenues ($274) ($344) Incentives YOY 5% 25% 2% Change Note: Percentage change calculated based on whole numbers, not rounded numbers. Fiscal Q3 2009 Earnings Results 8
Slide 9: Revenue Detail
Revenue Detail – Q3 2009 US$ in millions 2008 2009 $749 $769 $605 $539 $449 $458 $150 $158 Data International Other Service Processing Transaction Revenues Revenues Revenues Revenues YOY 3% 12% 2% 6% Change Note: Percentage change calculated based on whole numbers, not rounded numbers. Fiscal Q3 200
Slide 10: Adjusted Operating Margin
Adjusted Operating Margin – Q3 2009 US$ in millions 2008 2009 $1,613 $1,646 51% $883 45% $804 $842 $730 Operating Margin Net Operating Total Operating Operating Income Revenues Expenses YOY 6 ppts 2% -9% 15% Change Fiscal Q3 2009 Earnings Results 10
Slide 11: Adjusted Operating Expenses
Adjusted Operating Expenses – Q3 2009 US$ in millions 2008 $295 2009 $271 $259 $229 $108 $97 $96 $84 $82 $85 $40 $40 $0 $1 Personnel Network, Advertising, Professional Depreciation Administrative Litigation EDP and Marketing and and and and Other Provision Communications Promotion Consulting Amortiz
Slide 12: Other Financial Results
Other Financial Results • Capital expenditures during the fiscal third quarter were $69 million • Cash, cash equivalents, restricted cash and investment securities of $6.1 billion at the end of the third quarter – $1.6 billion of restricted cash for litigation escrow – $700 million additional fundin
Slide 13: Financial Metrics through Fiscal Year 2010
Financial Metrics through Fiscal Year 2010 FY 2009: High single Annual net revenue growth digits FY 2010: 11-15% FY 2009: Low 50% range Annual adjusted operating margin FY 2010: Low 50% range Annual adjusted diluted class A common earnings per share growth 20% + Annual free cash flow $1 billion + FY
Slide 14: Appendix – Reconciliation of Non-GAAP Measures
Appendix – Reconciliation of Non-GAAP Measures
Slide 15: Adjusted Operating Income and Net Income
Adjusted Operating Income and Net Income US$ in millions Three Months Ended Three Months Ended June 30, 2009 June 30, 2008 Net income (as reported) $ 729 $ 422 Addback: Income tax expense (as reported) 568 292 Net Income before taxes and minority interest (as reported) $ 1,297 $ 714 Adjustments: Lit
Slide 16: Reconciliation of Non-GAAP Adjusted Operating Expenses
Reconciliation of Non-GAAP Adjusted Operating Expenses US$ in millions Three Months Ended Three Months Ended June 30, 2009 June 30, 2008 Actual Adjustments As Adjusted Actual Adjustments As Adjusted Personnel $ 262 $ (3) (1) $ 259 $ 310 $ (15) (1) $ 295 Network, EDP and communications 97 - 97 84 - 8
Slide 17: Reconciliation of Non-GAAP Adjusted Non-operating Income
Reconciliation of Non-GAAP Adjusted Non-operating Income US$ in millions Three Months Ended Three Months Ended June 30, 2009 June 30, 2008 Actual Adjustments As Adjusted Actual Adjustments As Adjusted Equity in earnings of unconsolidated affiliates $ - $ - $ - $ - $ - $ - (1) (1) Interest expense (3
Slide 18: Class A Common Stock Adjusted Diluted Earnings per Share
Class A Common Stock Adjusted Diluted Earnings per Share • Management believes the presentation of adjusted operating income and adjusted net income provides a clearer understanding of the one-time items related to the Company's reorganization, initial public offering and other non-recurring events.
Slide 19: Calculation of Free Cash Flow
Calculation of Free Cash Flow US$ in millions Additions (+) / For the Nine Reductions (-) to Months Ended Net income June 30, 2009 Net income (as reported) $ 1,839 Recurring Items: + Depreciation and amortization 165 Capital Assets - Capital expenditures (205) Share-based Compensation + Share-based