Visa Inc. · NYSE:V
Visa — Q3 2017 Earnings Presentation
15 slides from Visa's earnings presentation, Jul 20, 2017
Slide 1: Fiscal Third Quarter 2017 Financial Results
Visa Inc. Fiscal Third Quarter 2017 Financial Results July 20, 2017 EHIBIT 99.2
Slide 2: Forward-Looking Statements
Fiscal Third Quarter 2017 Financial Results2 This presentation contains forward-looking statements within the meaning of the U.S. Private Securities Litigation Reform Act of 1995 that relate to, among other things, our future operations, prospects, developments, strategies, business growth and finan
Slide 3: Strong Fiscal Third Quarter Results
Fiscal Third Quarter 2017 Financial Results3 Strong Fiscal Third Quarter Results Returned approximately $2.1 billion of capital to shareholders in the form of share repurchases and dividends GAAP net income of $2.1 billion or $0.86 per share Net operating revenue of $4.6 billion, an increase of 26%,
Slide 4: Payments Volume - Quarter ended March
Fiscal Third Quarter 2017 Financial Results4 Quarter ended March – Excludes Europe Co-badge Payments Volume* Payments Volume US$ in billions, nominal, except percentages INTL 558 INTL 958 INTL 445 INTL 572 INTL 113 INTL 386 U.S. 694 U.S. 776 U.S. 334 U.S. 404 U.S. 359 U.S. 372 1,252 1,734 780 976 47
Slide 5: Payments Volume - Quarter ended June
Fiscal Third Quarter 2017 Financial Results5 Quarter ended June – Excludes Europe Co-badge Payments Volume* Payments Volume US$ in billions, nominal, except percentages YOY Change (constant) 38% 24% 62% YOY Change (nominal) 23% 63%38% Note: The Company did not include Visa Europe’s payments volume f
Slide 6: Processed Transactions
Fiscal Third Quarter 2017 Financial Results6 Quarter ended June – Excludes Europe Co-badge from Total Transactions* Transactions in millions, except percentages Note: The Company did not include Visa Europe’s payments volume from the acquisition date, June 21, 2016, through June 30, 2016 as the impa
Slide 7: Cards - Quarter ended March
Fiscal Third Quarter 2017 Financial Results7 Quarter ended March Total Cards in millions, except percentages 2,465 864 1,602 3,155 1,060 2,096 Visa Inc. Credit Debit Note: The data presented is based on results reported quarterly by Visa clients on their operating certificates. Estimates may be util
Slide 8: Revenue - Q3 2017
Fiscal Third Quarter 2017 Financial Results8 4,469 (839) 3,630 5,712 (1,147) 4,565 Gross Revenues Client Incentives Net Operating Revenues Fiscal 2016 Fiscal 2017 Revenue – Q3 2017 US$ in millions, except percentages YOY Change 37% 26%28% Fiscal 2017 % of Gross Revenues 20% 80% Note: The Company did
Slide 9: Revenue Detail - Q3 2017
Fiscal Third Quarter 2017 Financial Results9 Revenue Detail – Q3 2017 US$ in millions, except percentages 1,635 1,541 1,084 209 1,948 1,984 1,571 209 Service Revenues Data Processing Revenues International Transaction Revenues Other Revenues Fiscal 2016 Fiscal 2017 YOY Change 29% 45%19% — Note: The
Slide 10: Operating Margin - Q3 2017
Fiscal Third Quarter 2017 Financial Results10 Operating Margin – Q3 2017 US$ in millions, except percentages 3,630 3,202 428 1,173 2,457 1,541 3,024 Reported GAAP Fiscal 2016 Adjusted non-GAAP Fiscal 2016 Reported GAAP Fiscal 2017 Net Operating Revenue 4,565 12% 68% 66% Note: The Company did not inc
Slide 11: Operating Expenses - Q3 2017
Fiscal Third Quarter 2017 Financial Results11 Operating Expenses – Q3 2017 US$ in millions, except percentages 509 189 123 138 120 246 1,877 78 154 0 102 230 0 Reported GAAP Fiscal 2016 Adjusted non-GAAP Fiscal 2016 Reported GAAP Fiscal 2017 698 Note: The Company did not include Visa Europe’s financ
Slide 12: Other Financial Results and Highlights
Fiscal Third Quarter 2017 Financial Results12 Other Financial Results and Highlights • Cash, cash equivalents and available-for-sale investment securities of $12.2 billion at the end of the fiscal third quarter • Adjusted free cash flow of $3.3 billion for the fiscal third quarter • Capital expendit
Slide 13: Financial Outlook for Fiscal Full-Year 2017
Fiscal Third Quarter 2017 Financial Results13 Financial Outlook for Fiscal Full-Year 2017 Annual net revenue growth Approximately 20% on a nominal dollar basis, including approximately 2.0 ppts of negative foreign currency impact Client incentives as a percent of gross revenues 20.0% to 20.5% range
Slide 14: Appendix
Appendix VISA
Slide 15: Calculation of Adjusted Free Cash Flow
Fiscal Third Quarter 2017 Financial Results15 Calculation of Adjusted Free Cash Flow US$ in millions A- Management believes that presentation of adjusted free cash flow is useful to measure the Company’s generation of cash available to first re-invest in the business and then return excess cash to s