Slide 1: Second-Quarter 2017 Financial Results Conference Call
Mastercard Incorporated Second-Quarter 2017 Financial Results Conference Call July 27, 2017
Slide 2: Business Update
Business Update Financial & Operational Overview Economic Update Business Highlights ©2017 Mastercard. Proprietary and Confidential July 27, 2017 2
Slide 3: 2nd Quarter Selected Financial Performance
2nd Quarter Selected Financial Performance ($ in millions, except per share data) YOY Growth* 2Q 16 Currency 2Q 17 Non-GAAP* Non-GAAP Neutral Net revenue $ 3,053 $ 2,694 13% 14% Total operating expenses 1,400 1,207 16% 17% Operating income 1,653 1,487 11% 12% Operating margin 54.1% 55.2% (1.1) ppt (
Slide 4: 2nd Quarter Gross Dollar Volume (GDV)
2nd Quarter Gross Dollar Volume (GDV) ($ in billions) Worldwide Rest of World 6% Growth United States 7% Growth 9% Adjusted Growth* 3% Growth 11% Adjusted Growth* $1,230 $1,282 $839 $878 $391 $404 ©2017 Mastercard. Proprietary and * Adjusted for the impact of recent EU regulatory changes Confidentia
Slide 5: 2nd Quarter Switched Transactions and Cards
2nd Quarter Switched Transactions and Cards Switched Transactions Cards 17% Growth 6% Growth 668 652 1,583 1,730 ©2017 Mastercard. Proprietary and Confidential Note: Figures may not sum due to rounding. July 27, 2017 5
Slide 6: 2nd Quarter Revenue
2nd Quarter Revenue ($ in millions) Domestic Cross-Border Transaction Other Rebates and Assessments Volume Fees Processing Fees Revenues Incentives Total Net Revenue ©2017 Mastercard. Proprietary and Growth As-reported 14% 14% 18% 17% 21% 13% Currency- Confidential Neutral 14% 16% 18% 18% 22% 14% No
Slide 7: 2nd Quarter Operating Expenses
2nd Quarter Operating Expenses ($ in millions) * General & Administrative Advertising & Marketing Depreciation & Amortization Total Operating Expenses* ©2017 Mastercard. Proprietary and Growth Non-GAAP 16% 16% 18% 16% Currency- Neutral 17% 17% 19% 17% Confidential Note: Figures may not sum due to ro
Slide 8: Looking Ahead
Looking Ahead Business update through July 21st Thoughts for 2017 ©2017 Mastercard. Proprietary and Confidential July 27, 2017 8
Slide 9: Appendices
Appendices
Slide 10: Appendix A Non-GAAP Reconciliation
Appendix A Non-GAAP Reconciliation ($ in millions, except per share data) Three Months Ended June 30, 2016 Diluted Operating Operating Operating Effective earnings per expenses income margin income tax rate Net income share ($ in millions, except per share data) Reported - GAAP $ 1,314 $ 1,380 51.2%
Slide 11: Appendix B Article 8 Impacts on Europe and Worldwide GDV and Purchase Volume Growth
Appendix B Article 8 Impacts on Europe and Worldwide GDV and Purchase Volume Growth Rates Growth (Local Currency) 2015Q1 2015Q2 2015Q3 2015Q4 2016Q1 2016Q2 2016Q3 2016Q4 2017Q1 2017Q2 1H2016 1H2017 GDV Europe as reported 15% 17% 17% 16% 18% 14% 4% 3% 1% 5% 16% 3% Europe normalized for Article 8 19%
Slide 12: Appendix C Non-GAAP Reconciliation
Appendix C Non-GAAP Reconciliation Full-Year Forecast 2017 2017 vs. 2016 Increase/(Decrease) Net revenue Operating expenses Forecasted growth 1 Mid-double digits Low-double digits Special items 2 — 2% Acquisitions (2)% (6)% Foreign currency 3 — — ©2017 Mastercard. Proprietary and Non-GAAP - Excludin