Visa Inc. · NYSE:V
Visa — Q4 2013 Earnings Presentation
17 slides from Visa's earnings presentation, Oct 30, 2013
Slide 1: Visa Inc. Fiscal Fourth Quarter Financial Results
Visa Inc. Fiscal Fourth Quarter Financial Results October 30, 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. Forward-looking statements generally are identified by words such as “outlook,” “will,” “believes,” “continues,” and other similar express
Slide 3: Solid Fiscal Fourth Quarter Results
Solid Fiscal Fourth Quarter Results • Strong operating revenues of $3.0 billion, up 9% over prior year • Quarterly net income of $1.2 billion and diluted earnings per share of $1.85, up 15% and 20%, respectively, over prior year adjusted results • Repurchased 7 million shares of class A common stock
Slide 4: Payments Volume
Payments Volume US$ in billions, nominal, except percentages Quarter ended June 2012 ROW = Rest of World 1,089 2013 977 U.S. U.S. 682 513 571 624 U.S. U.S. 246 270 407 353 ROW ROW U.S. U.S. ROW ROW 465 519 267 300 379 412 ROW 86 ROW 107 Total Visa Inc. Credit Debit YOY Change (nominal) 11% 9% 15% YO
Slide 5: Payments Volume
Payments Volume US$ in billions, nominal, except percentages Quarter ended September 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 p
Slide 6: Transactions
Transactions in millions, except percentages Quarter ended September 2012 2013 22,907 20,568 Credit Credit 15,491 38% 38% 13,573 Debit Debit 62% 62% Total Processed Transactions Transactions YOY 11% 14% Change Note: Processed transactions represent transactions involving Visa, Visa Electron, Interli
Slide 7: Total Cards
Total Cards in millions, except percentages Quarter ended June 2012 2013 2,159 2,016 1,354 1,240 776 805 Credit Debit Visa Inc. YOY Change 4% 9% 7% Note: From time to time, previously submitted card information may be updated. Prior period updates are not material. Figures may not recalculate exactl
Slide 8: Revenue – Q4 2013
Revenue – Q4 2013 US$ in millions, except percentages Fiscal 2012 Fiscal 2013 3,653 3,294 2,973 2,731 (563) (680) Gross Revenues Incentives Net Operating Revenues YOY Change 11% 21% 9% FY13 % of Gross Revenues 19% 81% Note: Figures may not recalculate exactly due to rounding. Percentage changes are
Slide 9: Revenue Detail – Q4 2013
Revenue Detail – Q4 2013 US$ in millions, except percentages Fiscal 2012 Fiscal 2013 1,385 1,264 1,186 1,062 899 796 172 183 Service Data Processing International Other Revenues Revenues Revenues Transaction Revenues YOY Change 10% 12% 13% 6% Note: Figures may not recalculate exactly due to rounding
Slide 10: Operating Margin – Q4 2013
Operating Margin – Q4 2013 US$ in millions, except percentages Fiscal 2012 Fiscal 2013 2,973 2,731 59% 1,751 56% 1,522 1,209 1,222 Net Operating Total Operating Operating Operating Revenues Expenses Income Margin YOY Change 9% 1% 15% 3 ppts Note: Operating margin is calculated as operating income di
Slide 11: Operating Expenses – Q4 2013
Operating Expenses – Q4 2013 US$ in millions, except percentages Fiscal 2012 Fiscal 2013 499 471 271 236 134 130 131 129 111 122 106 89 2 0 Personnel Marketing Network & Professional Depreciation & General & Litigation Processing Fees Amortization Administrative provision YOY Change 6% (13%) 10% (3%
Slide 12: Other Financial Results
Other Financial Results • Cash, cash equivalents and available-for-sale investment securities of $6.9 billion at the end of the fiscal fourth quarter • Free cash flow of $1.9 billion for the fiscal fourth quarter • Capital expenditures of $138 million during the fiscal fourth quarter Fiscal Fourth Q
Slide 13: Financial Metrics for Fiscal Year 2014
Financial Metrics for Fiscal Year 2014 Low double-digits on a constant dollar basis Annual net revenue growth Negative 2 ppts foreign currency impact Client incentives as % of gross revenues 16.5% to 17.5% range Operating margin Low 60s Annual diluted class A common stock Mid to high teens earnings
Slide 14: Appendix
VISA Appendix
Slide 15: Reconciliation of Non-GAAP Financial Results – Fourth Quarter
Reconciliation of Non-GAAP Financial Results – Fourth Quarter US$ in millions, except per share data During the fourth quarter of fiscal 2012, the IRS issued a revised Revenue Agent Report effectively withdrawing its proposed adjustment, which would have disallowed the deduction of payments made in
Slide 16: Reconciliation of Non-GAAP Financial Results – Full Year
Reconciliation of Non-GAAP Financial Results – Full Year US$ in millions, except percentages and per share data Our financial results for fiscal 2012 were impacted by the following special items: • Reversal of tax reserves: During the fourth quarter of fiscal 2012, we reversed all previously recorde
Slide 17: Calculation of Free Cash Flow
Calculation of Free Cash Flow US$ in millions Additions (+) / Reductions (-) to Net income attributable to Three Months Ended Twelve Months Ended Visa Inc. September 30, 2013 September 30, 2013 Net income attributable to Visa Inc. (as reported) 1,192 4,980 Capital Assets + Depreciation and amortizat