Visa Inc. · NYSE:V
Visa — Q4 2011 Earnings Presentation
31 slides from Visa's earnings presentation, Oct 26, 2011
Slide 1: Fiscal Fourth Quarter and Full-Year 2011 Financial Results
Visa Inc. Fiscal Fourth Quarter and Full-Year 2011 Financial Results October 26, 2011
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. These statements can be identified by the terms “expect,” “will,” “continue” and similar references to the future. Examples of such forwar
Slide 3: Solid Fiscal Fourth Quarter and Full-Year Results
Solid Fiscal Fourth Quarter and Full-Year Results • Strong operating revenues of $2.4 billion for the fourth quarter and $9.2 billion for the full-year, up 13% and 14% over prior year • Quarterly and adjusted annual net income of $880 million and $3.5 billion, and diluted earnings per share of $1.27
Slide 4: Payments Volume - Quarter ended June
Payments Volume US$ in billions, nominal, except percentages Quarter ended June 2010 941 ROW = Rest of World 2011 802 U.S. U.S. 469 518 572 481 U.S. U.S. 369 204 224 321 U.S. U.S. ROW ROW 294 266 333 423 ROW ROW 277 348 ROW 55 ROW 75 Total Visa Inc. Credit Debit YOY Change (nominal) 17% 19% 15% YOY
Slide 5: Payments Volume - Quarter ended September
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: Payments Volume - Twelve Months ended June
Payments Volume US$ in billions, nominal, except percentages Twelve Months ended June Fiscal 2010 ROW = Rest of World Fiscal 2011 3,530 3,037 U.S. U.S. 1,752 1,961 2,141 1,861 U.S. U.S. 846 1,390 781 1,176 ROW ROW U.S. U.S. 1,285 1,569 971 1,115 ROW ROW 1,080 1,295 ROW 206 ROW 275 Total Visa Inc. Cr
Slide 7: Payments Volume - Twelve Months ended September
Payments Volume US$ in billions, nominal, except percentages Twelve Months 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 base
Slide 8: Payments Volume by Region - Quarter ended June
Payments Volume US$ in billions, nominal, except percentages Quarter ended June 2010 2011 518 469 248 198 62 85 48 55 35 24 United States Asia Pacific Latin America and Canada Central and Caribbean Eastern Europe, Middle East and Africa YOY Change (nominal) 10% 26% 37% 14% 42% YOY Change (constant)
Slide 9: Payments Volume by Region - Quarter ended September
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 10: Payments Volume by Region - Twelve Months ended June
Payments Volume US$ in billions, nominal, except percentages Twelve Months ended June 2010 2011 1,961 1,752 931 771 240 312 183 204 122 91 United States Asia Pacific Latin America and Canada Central and Caribbean Eastern Europe, Middle East and Africa YOY Change (nominal) 12% 21% 30% 12% 34% YOY Cha
Slide 11: Payments Volume by Region - Twelve Months ended September
Payments Volume US$ in billions, nominal, except percentages Twelve Months 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 base
Slide 12: Transactions
Transactions in millions, except percentages Quarter ended June Quarter ended September 2010 2011 19,404 19,779 17,582 18,149 Credit Credit Credit Credit 35% 35% 13,038 c 36% Credit 13,263 11,721 35% 35% 12,119 Debit Debit Debit Debit 65% 65% 65% 64% Total Transactions Processed Total Transactions P
Slide 13: Transactions - Twelve Months
Transactions in millions, except percentages Twelve Months ended June Twelve Months ended September 2010 76,084 2011 68,423 Credit Credit 74,456 36% 35% 66,158 50,922 45,411 Credit Credit 49,778 36% 35% 43,755 c Credit 35% Debit Debit Debit Debit 64% 65% 64% 65% Total Transactions Processed Total Pr
Slide 14: Total Cards
Total Cards in millions, except percentages Quarter ended June 2010 2011 1,837 1,903 1,137 1,065 772 766 Credit Debit Visa Inc. YOY Change (1%) 7% 4% Note: From time to time, previously submitted card information may be updated. Prior year card information presented has not been updated, as changes
Slide 15: Revenue – Q4 2011
Revenue – Q4 2011 US$ in millions, except percentages Fiscal 2010 Fiscal 2011 2,959 2,538 2,383 2,117 (421) (576) Gross Revenues Incentives Net Operating Revenues YOY Change 17% 37% 13% Percentage of Gross Revenues 19% 81% Note: Growth rates calculated based on whole numbers, not rounded numbers. Fi
Slide 16: Revenue – Fiscal Year 2011
Revenue – Fiscal Year 2011 US$ in millions, except percentages Fiscal 2010 Fiscal 2011 11,068 9,625 9,188 8,065 (1,560) (1,880) Gross Revenues Incentives Net Operating Revenues YOY Change 15% 21% 14% Percentage of Gross Revenues 17% 83% Note: Growth rates calculated based on whole numbers, not round
Slide 17: Revenue Detail – Q4 2011
Revenue Detail – Q4 2011 US$ in millions, except percentages Fiscal 2010 Fiscal 2011 1,105 912 925 840 758 619 167 171 Service Data Processing International Other Revenues Revenues Revenues Transaction Revenues YOY Change 21% 10% 23% 3% Note: Growth rates calculated based on whole numbers, not round
Slide 18: Revenue Detail – Fiscal Year 2011
Revenue Detail – Fiscal Year 2011 US$ in millions, except percentages Fiscal 2010 Fiscal 2011 4,261 3,497 3,478 3,125 2,674 2,290 713 655 Service Data Processing International Other Revenues Revenues Revenues Transaction Revenues YOY Change 22% 11% 17% (8%) Note: Growth rates calculated based on who
Slide 19: Operating Margin – Q4 2011
Operating Margin – Q4 2011 US$ in millions, except percentages Fiscal 2010 Fiscal 2011 57% 2,383 2,117 53% 1,362 1,021 1,113 1,004 Operating Net Operating Total Operating Operating Margin Revenues Expenses Income YOY Change 4 ppts 13% 2% 22% Note: Growth rates calculated based on whole numbers, not
Slide 20: Operating Margin – Fiscal Year 2011
Operating Margin – Fiscal Year 2011 US$ in millions, except percentages Fiscal 2010 Fiscal 2011 9,188 59% 8,065 57% 5,456 4,589 3,476 3,732 Operating Net Operating Total Operating Operating Margin Revenues Expenses Income YOY Change 2 ppts 14% 7% 19% Note: Growth rates calculated based on whole numb
Slide 21: Operating Expenses – Q4 2011
Operating Expenses – Q4 2011 US$ in millions, except percentages Fiscal 2010 Fiscal 2011 388 353 233 239 119 108 115 117 106 95 78 77 1 (4) Personnel Network Marketing Professional Fees Depreciation General Litigation and Processing and Amortization and Administrative Provision YOY Change 10% (11%)
Slide 22: Operating Expenses – Fiscal Year 2011
Operating Expenses – Fiscal Year 2011 US$ in millions, except percentages Fiscal 2010 Fiscal 2011 1,459 1,222 964 870 425 414 357 359 286 337 265 288 7 (45) Personnel Network Marketing Professional Fees Depreciation and General and Litigation and Amortization Administrative Provision Processing YOY
Slide 23: Other Income (Expense) Fiscal Year 2011
Other Income (Expense) Fiscal Year 2011 US$ in millions The following table presents components of our other income (expense). Gain on sale of investment in CBSS $ 85 Revaluation of Visa Europe put option 122 (1) Other (7) Total other income $ 200 (1) Amount primarily represents interest expense, ot
Slide 24: Other Financial Results
Other Financial Results • Cash, cash equivalents, restricted cash, and available-for-sale investment securities of $6.9 billion at the end of the fiscal year, which includes $2.9 billion of restricted cash in the litigation escrow account • Free cash flow of $3.9 billion was fully deployed to effect
Slide 25: Financial Metrics for Fiscal Year 2012
Financial Metrics for Fiscal Year 2012 High single to Annual net revenue growth low double digit range 17% to 18% Client incentives as % of gross revenues range Under $1 Marketing expenses billion Annual operating margin About 60% Fiscal Fourth Quarter and Full-Year 2011 Financial Results 25
Slide 26: Financial Metrics for Fiscal Year 2012
Financial Metrics for Fiscal Year 2012 33% to 34% Adjusted tax rate* range Adjusted annual diluted class A common stock Mid to high teens earnings per share growth range $350 million to Capital expenditures $400 million range Annual free cash flow Above $4 billion *Excludes impact of possible non-ca
Slide 27: Appendix: Reconciliation of Non-GAAP Measures
Appendix Reconciliation of Non-GAAP Measures
Slide 28: Adjusted Net Income and Earnings per share data
Adjusted Net Income and Earnings US$ in millions, except per share data Management believes the presentation of adjusted net income and diluted earnings per share provides a clearer understanding of our operating performance for the periods. The revaluation of the Visa Europe put option during the t
Slide 29: 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, 2011 September 30, 2011 Net income attributable to Visa Inc. (as reported) 880 3,650 Capital Assets + Depreciation and amortizatio
Slide 30: Impact of PlaySpan Acquisition
Impact of PlaySpan Acquisition US$ in millions, except per share data The following table presents the impact of the PlaySpan acquisition on Visa’s fiscal fourth quarter and full-year adjusted diluted earnings per share. Three Months Ended Twelve Months Ended September 30, 2011 September 30, 2011 Ne
Slide 31: Impact of Fundamo Acquisition
Impact of Fundamo Acquisition US$ in millions, except per share data The following table presents the impact of the Fundamo acquisition on Visa’s fiscal fourth quarter and full-year adjusted diluted earnings per share. Three Months Ended Twelve Months Ended September 30, 2011 September 30, 2011 Net