Slide 1: MasterCard Incorporated First Quarter 2008 Financial Results Conference Call
April 29, 2008 Exhibit 99.2 MasterCard Incorporated Quarter 2008 Financial Results Conference Call st
Slide 2: First Quarter Financial Results
2 • Net income of $398 million, or $3.01 per share, on a diluted basis – Excluding a special item * of $49 million, or $0.37 per share – Including gains from sales of Redecard shares of $56 million, or $0.42 per share • Net income of $447 million, or $3.38 per share, on a diluted basis, including th
Slide 3: Business Update
3 • Economic Overview • IPS Debit Processing • Legal and Regulatory Update • Redecard Sales • Share Repurchase and Conversion Programs Business Update
Slide 4: First Quarter Selected Financial Performance
4 $ 3.01 $ 398 516 43.6% 666 $ 1,182 1Q 2008 adjusted for special items* $ 1.57 $ 215 314 34.3% 601 $ 915 1Q 2007 Actual $ 3.38 $ 447 516 43.6% 666 $ 1,182 1Q 2008 Actual 91.7 Diluted EPS 85.3 Net income 10.9 Total operating expenses 64.2 9.3 ppts Operating income Operating margin 29.2 Net revenue Y
Slide 5: MasterCard Branded Volume (GDV)
5 Note: Figures may not sum due to rounding 8.9 8.9 259 United States 14.1% 20.0 $611 Worldwide 13.0 31.6 24 Canada 31.3 33.5 12 South Asia/Middle East/Africa (SAMEA) 18.7 27.8 89 Asia Pacific 20.7 28.7 44 Latin America 17.4 30.2 183 Europe Local Currency U.S. Dollar GDV ($ billions) YOY Growth Rate
Slide 6: First Quarter Revenue - Operations Fees
6 • Net operations fees increased 31.4%, or $205 to $858 • Gross operations fees increased 30.2%, or $219 to $944. Key drivers included: – Processed transactions growth: 15.7% – Cross-border volume growth of 23.6% – GDV growth: 14.1% * – Pricing changes • Net operations fees as a % of gross improved
Slide 7: First Quarter Revenue - Assessments
7 • Net assessments increased 23.7%, or $62, to $324 • Gross assessments increased 20.4%, or $94 to $554 due to strong GDV growth of 14.1% * • Net assessments as a % of gross assessments improved slightly: – Rebates tempered by adjustment * On a local currency basis Net Assessment Fees Net Assessmen
Slide 8: 1st Quarter Operating Expenses
8 • Total operating expenses increased 10.9%, or $65, to $666 • G&A increased 10.9%, or $43, to $442 primarily due to: – Higher personnel costs for additional staff and contractors • A&M increased 11.6%, or $21, to $199 primarily due: – Timing of certain expenses for sponsorships and promotions – Cu
Slide 9: Cash Flow Statement and Balance Sheet Highlights
9 • Generated $224 million in cash flow from operations during the quarter • Cash, cash equivalents and available-for-sale securities of $2.9 billion at 3/31/08 • Available-for-sale securities (short & long term) decreased $281 million primarily due to: – Sale of remaining shares of Redecard – Sale
Slide 10: Items for Consideration
10 • 2Q07 special items: – Litigation settlements of $3 million – Other income of $90 million related to the World Cup settlement agreement • Thoughts for 2008: – Net revenue growth: slower than 2007, but still double-digit – G&A growth: slower than net revenue growth and below 2007 G&A growth rate
Slide 11: MasterCard Worldwide: The Heart of Commerce
MasterCard Worldwide The Heart of Commerce”
Slide 12: Appendix A: GAAP Reconciliation of Special Items
12 a. $75 million gain from the termination of a customer business agreement NM = Not meaningful Figures may not sum due to rounding ($ million) YOY Growth Actual Special Items As Adjusted Actual Special Items As Adjusted As Adjusted Revenues, net $1,182 - $1,182 $915 - $915 29.2% Operating Expenses