Visa Inc. · NYSE:V
Visa — Merger or Acquisition (October 2006)
14 slides from Visa's merger presentation, October 2006
Slide 1: Visa Restructuring
VISA Visa Restructuring
Slide 2: Non-binding agreement and offering disclaimer
This information is based upon unanimous, non-binding agreement by the Visa International board and Visa regional boards. It is all subject to Definitive Agreements being acceptable to all parties, all necessary corporate and member approval, and completion of all necessary due diligence. This prese
Slide 3: Charting Visa's course for decades to come
Charting Visa’s course for decades to come… • Visa is changing our structure from a member-owned, not-for- profit association to a public global corporation • Visa and electronic payments are entering a new era – propelled by technological advances, emerging market opportunities and increasing custo
Slide 4: What is Changing
What is Changing Visa Today Visa Inc. • Not-for-profit association • Public global corporation • Governed by financial institution • Governed by majority directors independent board • Six regional businesses • Global organization with centralized governance and management • Member FIs as owners • In
Slide 5: What is staying the same
What is staying the same Global leader in the payments industry Local market expertise Flexible and secure global network Global interoperability of products and services Innovative, smart and dedicated employees Visa Restructuring | October 2006 Information Classification as Needed Presentation Ide
Slide 6: We believe this restructuring will accelerate Visa's growth
We believe this restructuring will accelerate Visa’s growth… Improve our ability to serve global customers while continuing to compete effectively in local markets Increase organizational efficiency and build on our financial strength Remove impediments to growth by addressing certain legal claims t
Slide 7: Better serve our customers
… better serve our customers Centralized global management balanced with local expertise and execution Streamlined product development and innovation to benefit financial institution and merchant customers The best solution for European customers Visa Restructuring | October 2006 Information Classif
Slide 8: Unlock the value in our global assets
Unlock the value in our global assets … Enable us to better leverage one of the world’s most trusted brands Allow us to expand into untapped markets and new businesses using our flexible, secure and unparalleled global network Enable us to expand value- added network services Visa Restructuring | Oc
Slide 9: Build on our global leadership position
… and build on our global leadership position For the year Ending December 31, 2005 Total Cards (Millions) Cards Sales Volume (Billions) Visa 1,578.5 Visa $4,247.1 MasterCard 749.3 MasterCard $1,660.6 American American 71.0 $484.8 Express Express Other 62.9 Other $20.9 Card Share Volume Share Master
Slide 10: Visa Added More Card Sales Volume Than All Other Global Payment Brands Combined
Visa Added More Card Sales Volume Than All Other Global Payment Brands Combined Growth in Annual CSV (Dec. 31st 2003 vs. Dec. 31st 2005) + $1,206.6 B + $388.8 B + $132.4 B - $8.6 B + $13.9 B Discover JCB Amex MC Visa Source: The Nilson Report Issue #853, (March 2006) As reported by The Nilson Report
Slide 11: Visa is the card sales volume market leader
Visa is the card sales volume market leader… Europe Canada Visa share 74.1% Visa share 39.1% MC share 22.7% MC share 19.0% Domestic/other 3.2% Domestic/other 41.9% USA Asia Pacific Visa share 68.3% Visa share 50.9% MC share 22.5% MC share 25.0% Domestic/other 9.3% Domestic/other 24.1% CEMEA LAC Visa
Slide 12: There are tremendous growth opportunities
…and there are tremendous growth opportunities Visa 9.2% Other Other* General 12.6% Purpose Global Personal Cards Consumption Checks 7.8% Expenditures 19.3% (PCE) Cash 51.1% $26.9 trillion PCE Source: Global Insight (June 2005); Visa percentage from Economist Intelligence Unit (June 2005) *Money Ord
Slide 13: Restructuring Process
Restructuring Process Step 1: Boards Approve Restructuring Plan Visa boards unanimously recommend restructuring the Visa organization, subject to member approval Step 2: Create Visa Inc. Visa intends to merge three entities – Visa USA, Visa Canada and Visa International to create Visa Inc. Step 3: V
Slide 14: A Bright Future
A Bright Future With this transformation, Visa is charting its course for decades to come. Visa Restructuring | October 2006 Information Classification as Needed Presentation Identifier.14 14