Visa Inc. · NYSE:V
Visa — Q3 2014 Earnings Presentation
15 slides from Visa's earnings presentation, Jul 24, 2014
Slide 1: Visa Inc. Fiscal Third Quarter 2014 Financial Results
Visa Inc. Fiscal Third Quarter 2014 Financial Results July 24, 2014
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 "believes," "estimates," "expects," "intends," "may," "projects," "co
Slide 3: Solid Fiscal Third Quarter Results
Solid Fiscal Third Quarter Results Solid operating revenues of $3.2 billion, up 5% over prior year Quarterly net income of $1.4 billion and diluted earnings per share of $2.17, up 11% and 15%, respectively, over prior year Repurchased 5.6 million shares of class A common stock in the open market at
Slide 4: Payments Volume
Payments Volume US$ in billions, nominal, except percentages Quarter ended March 2013 2014 1,108 1,026 INTL = International U.S. U.S. 530 575 687 638 U.S. U.S. 269 388 421 244 INTL INTL INTL INTL U.S. U.S. 496 533 394 417 286 305 INTL 102 INTL 115 Total Visa Inc. Credit Debit YOY Change (nominal) 8%
Slide 5: Payments Volume
Payments Volume US$ in billions, nominal, except percentages Quarter ended June Note: Current quarter payments volume and other select metrics are provided in the operational performance data supplement in the press release to provide more recent operating data. Service revenues continue to be recog
Slide 6: Transactions
Transactions in millions, except percentages Quarter ended June 2013 2014 24,543 22,348 Credit Credit 37% 37% 16,662 14,972 Debit Debit 63% 63% Total Transactions Processed Transactions YOY 10% 11% Change Note: Processed transactions represent transactions involving Visa, Visa Electron, Interlink an
Slide 7: Total Cards
Total Cards in millions, except percentages Quarter ended March 2013 2014 2,261 2,128 1,438 1,327 801 822 Visa Inc. Credit Debit YOY Change 6% 3% 8% Note: The data presented is based on results reported quarterly by Visa clients on their operating certificates. Estimates may be utilized if data is u
Slide 8: Revenue – Q3 2014
Revenue – Q3 2014 US$ in millions, except percentages Fiscal 2013 Fiscal 2014 3,793 3,522 3,001 3,155 (521) (638) Gross Revenues Client Net Operating Incentives Revenues YOY Change 8% 22% 5% Fiscal 2014 % of Gross Revenues 17% 83% Note: Figures may not recalculate exactly due to rounding. Percentage
Slide 9: Revenue Detail – Q3 2014
Revenue Detail – Q3 2014 US$ in millions, except percentages Fiscal 2013 Fiscal 2014 1,417 1,298 1,321 1,191 854 860 179 195 Service Revenues Data Processing International Other Revenues Revenues Transaction Revenues YOY Change 9% 11% 1% 9% Note: Figures may not recalculate exactly due to rounding.
Slide 10: Operating Margin – Q3 2014
Operating Margin – Q3 2014 US$ in millions, except percentages Fiscal 2013 Fiscal 2014 3,155 3,001 64% 2,020 61% 1,828 1,173 1,135 Net Operating Total Operating Operating Operating Revenues Expenses Income Margin YOY Change 5% (3%) 11% 3 ppts Note: Operating margin is calculated as operating income
Slide 11: Operating Expense – Q3 2014
Operating Expense – Q3 2014 US$ in millions, except percentages Fiscal 2013 Fiscal 2014 493 463 252 228 117 127 103 101 109 108 126 82 0 (1) Personnel Marketing Network & Professional Depreciation & General & Litigation Processing Fees Amortization Administrative Provision YOY Change (6%) (9%) 9% (2
Slide 12: Other Financial Results
Other Financial Results • Cash, cash equivalents and available-for-sale investment securities of $6.8 billion at the end of the fiscal third quarter • Free cash flow of $1.9 billion for the fiscal third quarter • Capital expenditures of $109 million during the fiscal third quarter 12 Fiscal Third Qu
Slide 13: Financial Metrics for Fiscal Year 2014
Financial Metrics for Fiscal Year 2014 • Constant revenue growth in the 9-10% range Annual net revenue growth • Negative 2 ppts foreign currency impact Client incentives as % of • Around 17% gross revenues Annual operating margin • Low to mid 60s Tax Rate • 30 - 31% range Annual diluted class A comm
Slide 14: Appendix
Appendix
Slide 15: Calculation of Free Cash Flow
Calculation of Free Cash Flow US$ in millions Additions (+) / Reductions (-) to Net Three Months Ended Nine Months Ended income June 30, 2014 June 30, 2014 Net income (as reported) 1,360 4,365 Capital Assets + Depreciation and amortization 109 323 - Capital expenditures (109) (326) - (3) Litigation