Slide 1: Fourth-Quarter and Full-Year 2020 Financial Results Conference Call
Mastercard Incorporated Fourth-Quarter and Full-Year 2020 Financial Results Conference Call January 28, 2021
Slide 2: Business Update
Business Update Key Trends Business Highlights Financial Overview ©2020 Mastercard January 28, 2021 2
Slide 3: 4th Quarter Selected Financial Performance
4th Quarter Selected Financial Performance ($ in millions, except per share data) YOY Growth 4Q 20 4Q 19 Currency Non-GAAP Non-GAAP As adjusted Neutral Net revenue $ 4,120 $ 4,414 (7)% (7)% Adjusted operating expenses 2,018 2,015 —% —% Adjusted operating income 2,102 2,399 (12)% (12)% Adjusted opera
Slide 4: 4th Quarter Gross Dollar Volume (GDV)
4th Quarter Gross Dollar Volume (GDV) ($ in billions) Worldwide United States Rest of World 1% Growth 4% Growth Flat $1,730 $1,747 $1,800 $1,600 $1,400 $1,223 $1,220 $876 $950 $1,200 $1,000 $622 $660 $800 $507 $527 $600 $400 $855 $796 $254 $291 $601 $560 $200 $254 $237 $0 4Q19 4Q20 4Q19 4Q20 4Q19 4Q
Slide 5: 4th Quarter Switched Transactions and Cards
4th Quarter Switched Transactions and Cards Switched Transactions Cards 4% Growth* 6% Growth 4,000 30 23.8 24.8 3,000 2,750 Transactions (in billions) Cards (in millions) 2,600 416 20 428 2,000 10 2,173 2,334 1,000 0 0 4Q19 4Q20 4Q19 4Q20 ©2020 Mastercard Mastercard Cards Maestro Cards Notes: Figure
Slide 6: 4th Quarter Revenue
4th Quarter Revenue ($ in millions) 4Q19 4Q20 $5,000 $4,414 $4,120 $4,000 $3,000 $2,263 $2,379 $2,000 $1,774 $1,749 $1,452 $1,233 $1,431 $867 $1,000 $0 $-1,000 $-2,000 $-3,000 $(2,308) $(2,306) Domestic Cross-Border Transaction Other Rebates and Growth Assessments Volume Fees Processing Revenues Inc
Slide 7: 4th Quarter Adjusted Operating Expenses
4th Quarter Adjusted Operating Expenses ($ in millions) 4Q19 4Q20 $3,000 $2,500 $2,015 $2,018 $2,000 $1,579 $1,625 $1,500 $1,000 $500 $290 $242 $146 $150 $0 Growth General & Administrative Advertising & Marketing Depreciation & Amortization Adjusted Operating Expenses Non-GAAP 3% (17)% 3% —% Currenc
Slide 8: Business Update Through January 21
st Business Update Through January 21 year-over-year growth % October 1 November1 December1 Week ending Week ending Week ending Full Month Full Month Full Month January 7 January 14 January 21 2 Switched volume 4% 4% 4% 3% 3% 2% United States 7% 5% 5% 11% 10% 7% Worldwide less U.S. 2% 3% 2% (4)% (3)
Slide 9: Cross-border Volume Trends
Cross-border Volume Trends ©2020 Mastercard 1. Through January 21st MTD Note: Cross-border volume growth is calculated in a manner as defined in our Supplemental Operational Performance Data January 28, 2021 9
Slide 10: Looking Ahead
Looking Ahead Further thoughts ©2020 Mastercard January 28, 2021 10
Slide 11: Appendices
Appendices
Slide 12: Non-GAAP Reconciliation
Appendix A Non-GAAP Reconciliation ($ in millions, except per share data) Three Months Ended December 31, 2020 Operating Operating Operating Other Income Effective income Diluted earnings expenses income margin (Expense) tax rate Net income per share Reported - GAAP $ 2,062 $ 2,058 49.9 % $ 110 17.6
Slide 13: Non-GAAP Reconciliation (continued)
Appendix A (continued) Non-GAAP Reconciliation Three Months Ended December 31, 2020 as compared to the Three Months Ended December 31, 2019 Increase/(Decrease) Operating Operating Operating Effective income Diluted earnings Net revenue expenses income margin tax rate Net income per share Reported -
Slide 14: Non-GAAP Reconciliation: First quarter 2021 operating expenses outlook
Appendix B Non-GAAP Reconciliation First quarter 2021 operating expenses outlook Q1'21 vs. Q1'20 Increase/(Decrease) 1 Forecasted Growth - GAAP Low-double-digits 2 Litigation provisions 0% Non-GAAP Growth Low-double-digits 3 Currency impact (2)% 4 Acquisitions (4-5)% Non-GAAP Growth, currency neutra
Slide 15: Revenue Growth Drivers
Appendix C Revenue Growth Drivers Three Months Ended December 31, 2020 Currency 1 2 Volume Acquisitions Impact Other Total 3 Domestic assessments 1% —% (3)% —% (1)% Cross-border volume fees (29)% —% 1% (12)% (40)% Transaction processing 4% —% 1% —% 5% 4 Other revenues ** 1% (1)% 16 % 16 % 5 6 Rebate
Slide 16: Operating Expense Growth Drivers (Non-GAAP)
Appendix D Operating Expense Growth Drivers (Non-GAAP) Three Months Ended December 31, 2020 Special 1 Currency 2 Operational Items Acquisitions Impact Total General and administrative (1)% ** 3% —% 3% Advertising and marketing (18)% ** 1% —% (17)% Depreciation and amortization (1)% ** 3% 1% 3% Total
Slide 17: 4th Quarter G&A Detail
Appendix E 4th Quarter G&A Detail ($ in millions) Increase/(Decrease) 4Q 20 4Q 19 $ % Personnel $ 970 $ 936 $ 34 4% Professional fees 126 154 (28) (18)% Data processing and telecommunications 205 178 27 15 % 1 Foreign exchange activity 19 20 (1) (4)% Other 305 291 14 5% Total general and administrat