Slide 1: MasterCard Incorporated Second Quarter 2007 Financial Results Conference Call
August 1, 2007 Exhibit 99.2 MasterCard Incorporated Quarter 2007 Financial Results Conference Call
Slide 2: Quarter Financial Results
2 • Delivered record quarterly net income of $195 million and earnings per share of $1.43, on a diluted basis, excluding special items 1 • Achieved quarterly net income of $252 million, or $1.85 per share, on a diluted basis, including special items 1 • Achieved record quarterly net revenue of $997
Slide 3: Quarter Selected Financial Performance
3 $ 1.85 $ 252 (134) 92 (11) 36 269 27.0% 25 _ 3 268 432 $ 997 Actual 2Q 07 NM _ _ Litigation 108.0 (50) (104) Tax Expense (31.3) (16) (11) Interest Expense _ 25 25 Depreciation and Amortization NM 5 _ Charitable Contribution $ 0.74 $ 101 _ 22 144 17.0% 307 365 $ 846 2Q 06 Adjusted for special items
Slide 4: MasterCard Branded Volume (GDV) Second Quarter 2007
4 Note: Figures may not sum due to rounding 9.8 9.8 255 United States 13.3 16.4 555 Worldwide 15.6 18.2 22 Canada 44.6 41.1 10 South Asia/Middle East/Africa (SAMEA) 15.1 18.5 73 Asia Pacific 22.1 27.3 37 Latin America 14.3 23.2 157 Europe Local Currency U.S. Dollar GDV ($ billions) YOY Growth Rate %
Slide 5: Quarter Revenue - Assessments
5 • Net assessments increased $34, or 14.5%, to $268 • Gross assessments increased $59, or 13.3%, to $503 due to strong GDV growth of 13.3%* • Net assessments as a % of gross assessments increased slightly $268 $234 $0 $50 $100 $150 $200 $250 $300 2Q06 2Q07 20% 30% 40% 50% 60% 70% 80% Net Assessment
Slide 6: Quarter Revenue - Operations Fees
6 • Net operations fees up $117, or 19.1%, to $729 • Gross operations fees increased $132, or 19.6%, over 2006. Key drivers include increases in: – Processed transactions growth: 15.2% – GDV growth: 13.3%* – Cross-border transaction volume growth of 17.3% • Net operations fees as a % of gross operat
Slide 7: Quarter Operating Expenses
7 • Total operating expenses increased 3.2% to $725, excluding special items, and decreased 35.0% to $728, including special items* • G&A increased 18.2%, or $67, driven by: – Higher personnel costs for additional staff and contractors – Increase in professional fees for strategic initiatives and le
Slide 8: Quarter Cash Flow Statement and Balance Sheet Highlights
8 • Generated $446 million in cash flow from operations during the six months ended June 30, 2007 • Cash, cash equivalents and available-for-sale securities of $2.8 billion and stockholders’ equity of $2.9 billion • Prepaid expenses increased $65 million primarily due to higher customer incentives a
Slide 9: 2007 Items for Consideration
9 • Special items: – None in 3Q 2006 – Litigation settlements of $2 million in 4Q 2006 • Expect second half G&A to grow at a rate similar to first half of the year • A&M spend: – Still anticipate very modest full-year growth – 3Q 2007 spend higher than 2Q 2007 – Highest spend in 4Q 2007, but more ev
Slide 10: MasterCard Worldwide: The Heart of Commerce
MasterCard Worldwide The Heart of Commerce”
Slide 11: Appendix A: GAAP Reconciliation
11 a Litigation settlements b Contribution of stock to the MasterCard Foundation c Contribution of cash to the MasterCard Foundation d Interest income on IPO proceeds held for redemption e Other income related to a settlement agreement to discontinue the company's sponsorship of the 2010 and 2014 Wo
Slide 12: Appendix A (cont.): GAAP Reconciliation
12 a Litigation settlements b Contribution of stock to the MasterCard Foundation c Contribution of cash to the MasterCard Foundation d Interest income on IPO proceeds held for redemption e Other income related to a settlement agreement to discontinue the company's sponsorship of the 2010 and 2014 Wo