Visa Inc. · NYSE:V
Visa — Q2 2015 Earnings Presentation
15 slides from Visa's earnings presentation, Apr 30, 2015
Slide 1: Visa Inc. Fiscal Second Quarter 2015 Financial Results
Visa Inc. Fiscal Second Quarter 2015 Financial Results April 30, 2015
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 "estimates," "expectation,“ “outlook,” "will," "continued" and other
Slide 3: Solid Fiscal Second Quarter Results
Solid Fiscal Second Quarter Results Solid operating revenues of $3.4 billion, up 8% over prior year Quarterly net income of $1.6 billion and diluted earnings per share of $0.63 Repurchased 16.2 million shares of class A common stock in the open market at an average price of $64.84 per share, using $
Slide 4: Payments Volume
Payments Volume US$ in billions, nominal, except percentages Quarter ended December 2013 2014 1,245 1,164 INTL = International U.S. U.S. 795 591 651 737 U.S. U.S. 288 327 427 450 INTL INTL U.S. U.S. INTL INTL 573 594 303 323 450 468 INTL 124 INTL 127 Total Visa Inc. Credit Debit YOY Change 5% (nomin
Slide 5: Payments Volume
Payments Volume US$ in billions, nominal, except percentages Quarter ended March 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 reco
Slide 6: Transactions
Transactions in millions, except percentages Quarter ended March 2014 25,082 2015 22,742 37% 37% Credit Credit 16,980 Credit Credit 15,354 38% 38% 63% 63% Debit Debit Debit 62% Total Transactions Processed Transactions YOY 10% 11% Change Note: Processed transactions represent transactions involving
Slide 7: Total Cards
Total Cards in millions, except percentages Quarter ended December 2013 2014 2,403 2,220 1,546 1,409 811 857 Visa Inc. Credit Debit YOY Change 8% 6% 10% Note: The data presented is based on results reported quarterly by Visa clients on their operating certificates. Estimates may be utilized if data
Slide 8: Revenue – Q2 2015
Revenue – Q2 2015 US$ in millions, except percentages Fiscal 2014 Fiscal 2015 4,085 3,750 3,409 3,163 (587) (676) Gross Revenues Client Net Operating Incentives Revenues YOY Change 9% 15% 8% Fiscal 2015 % of Gross Revenues 17% 83% Note: Figures may not recalculate exactly due to rounding. Percentage
Slide 9: Revenue Detail – Q2 2015
Revenue Detail – Q2 2015 US$ in millions, except percentages Fiscal 2014 Fiscal 2015 1,577 1,462 1,340 1,234 964 871 183 204 Service Revenues Data Processing International Other Revenues Revenues Transaction Revenues YOY Change 8% 9% 11% 12% Note: Figures may not recalculate exactly due to rounding.
Slide 10: Operating Margin – Q2 2015
Operating Margin – Q2 2015 US$ in millions, except percentages Fiscal 2014 Fiscal 2015 3,409 3,163 65% 67% 2,281 2,048 1,115 1,128 Net Operating Total Operating Operating Operating Revenues Expenses Income Margin YOY Change 8% 1% 11% 2ppt Note: Operating margin is calculated as operating income divi
Slide 11: Operating Expenses – Q2 2015
Operating Expenses – Q2 2015 US$ in millions, except percentages Fiscal 2014 Fiscal 2015 483 446 245 190 125 141 120 109 107 120 77 77 0 3 Personnel Marketing Network & Professional Depreciation & General & Litigation Provision Processing Fees Amortization Administrative YOY Change 8% (22%) (9%) — 1
Slide 12: Other Financial Results
Other Financial Results • Cash, cash equivalents and available-for-sale investment securities of $7.3 billion at the end of the fiscal second quarter • Free cash flow of $1.0 billion for the fiscal second quarter • Capital expenditures of $98 million during the fiscal second quarter • Effected a fou
Slide 13: Financial Metrics for Fiscal Year 2015
Financial Metrics for Fiscal Year 2015 • Constant dollar revenue growth of low double digits Annual net revenue growth • Negative 2 ppts foreign currency impact Client incentives as % of gross revenues • 17.5% - 18.5% range Annual operating margin • Mid 60s Tax rate • Low 30s Annual diluted class A
Slide 14: Appendix
Appendix
Slide 15: Calculation of Free Cash Flow
Calculation of Free Cash Flow US$ in millions Additions (+) / Reductions (-) Three Months Ended Six Months Ended to Net income March 31, 2015 March 31, 2015 Net income (as reported) 1,550 3,119 Capital Assets + Depreciation and amortization 125 245 - Capital expenditures (98) (202) 27 43 Litigation