Slide 1: Second-Quarter 2016 Financial Results Conference Call
MasterCard Incorporated Second‐Quarter 2016 Financial Results Conference Call July 28, 2016
Slide 2: Business Update
Business Update Financial & Operational Overview Economic Update Business Highlights 2 July 28, 2016 ©2016 Mastercard. Proprietary
Slide 3: 2nd Quarter Selected Financial Performance
2nd Quarter Selected Financial Performance ($ in millions, except per share data) YOY Growth 2Q 16 2Q 15 Non‐GAAP Non‐GAAP Currency excl s pecia l i tem* excl s peci a l item* Non‐GAAP Neutral Net revenue $ 2,694 $ 2,390 13% 14% Total operating expenses 1,207 1,078 12% 13% Operating income 1,487 1,3
Slide 4: 2nd Quarter Gross Dollar Volume (GDV)
2nd Quarter Gross Dollar Volume (GDV) ($ in billions) Worldwide United States Rest of World 11% Growth 8% Growth 13% Growth $1,228 $1,142 $1,200 $586 $778 $837 $524 $800 $332 $379 $364 $391 $400 $618 $642 $192 $207 $446 $458 $172 $184 $0 2Q 15 2Q 16 2Q 15 2Q 16 2Q 15 2Q 16 Credit Debit Notes: 1. Gro
Slide 5: Processed Transactions and Cards
2nd Quarter Processed Transactions and Cards Processed Transactions Cards 14% Growth 7% Growth 15,000 13,688 2,500 2,283 12,012 2,140 Transactions (in millions) 12,500 2,000 672 10,000 Cards (in millions) 681 7,500 1,500 5,000 1,000 1,460 1,611 2,500 500 0 0 2Q 15 2Q 16 2Q 15 2Q 16 Note: Figures may
Slide 6: 2nd Quarter Revenue
2nd Quarter Revenue ($ in millions) $3,000 $2,694 2Q 15 2Q 16 $2,390 $2,000 $1,271 $1,028 $1,110 $866 $1,051 $1,000 $777 $590 $474 $0 ‐$1,000 ($940) ($1,143) ‐$2,000 Domestic Cross‐Border Transaction Other Revenue Rebates and Total Net Revenue Assessments Volume Fees Processing Fees Incentives Growt
Slide 7: 2nd Quarter Operating Expenses
2nd Quarter Operating Expenses ($ in millions) $1,400 2Q 15 2Q 16 $1,207 $1,200 $1,078 $1,000 $930 $810 $800 $600 $400 $176 $184 $200 $92 $93 $0 General & Administrative Advertising & Marketing Depreciation & Amortization Total Operating Expenses* Growth As‐reported 15% 5% 2% 12% * Currency‐Neutral
Slide 8: Looking Ahead
Looking Ahead Business update through July 21st Long-Term Performance Objectives Thoughts for 2016 8 July 28, 2016 ©2016 Mastercard. Proprietary
Slide 9: Appendices
Appendices
Slide 10: Non-GAAP Reconciliation (Appendix A)
APPENDIX A Non‐GAAP Reconciliation 2nd Quarter 2016 and 2015 Results ($ in millions, except per share data) Three Months Ended June 30, 2016 2015 Percent Increase/(Decrease) Special Non‐ Special Non‐ Special Non‐ Actual Item GAAP1 Actual Item GAAP1 Actual Items GAAP1 Total operating expenses $ 1,314
Slide 11: Non-GAAP Reconciliation (Appendix B)
APPENDIX B Non‐GAAP Reconciliation 2016 Full Year Forecast Operating Expense Growth 2016 vs 2015 Non‐GAAP Forecast Growth High‐Single Digits U.K. Merchant Litigation Provisions1 1% U.S. Employee Pension Plan Settlement Charge2 (2%) As‐Reported Forecast Growth High‐Single Digits 1 Impact of U.K. merc