Visa Inc. · NYSE:V
Visa — Q2 2010 Earnings Presentation
19 slides from Visa's earnings presentation, Apr 28, 2010
Slide 1: Visa Inc. Fiscal Second Quarter Financial Results
Visa Inc. Fiscal Second Quarter Financial Results April 28, 2010
Slide 2: Safe Harbor Reminder
Safe Harbor Reminder • Certain statements contained in this press release are forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, which are subject to the “safe harbor” created by
Slide 3: Solid Fiscal Second Quarter Results
Solid Fiscal Second Quarter Results • Strong operating revenues of $2.0 billion, up 19% over prior year • Quarterly net income of $713 million, up 33%, and diluted earnings of $0.96 per share, up 35% over prior year • Repurchased additional 2.8 million class A common stock at an average price of $83
Slide 4: Payments Volume
Payments Volume US$ in billions, nominal, except percentages Quarter ended December 2008 ROW = Rest of World 2009 769 675 U.S. U.S. 478 409 438 431 U.S. U.S. 203 201 291 244 ROW ROW U.S. U.S. ROW ROW 266 331 206 238 228 278 ROW 38 ROW 53 Total Visa Inc. Credit Debit YOY Change (nominal) 14% 11% 19%
Slide 5: Payments Volume
Payments Volume US$ in billions, nominal, except percentages Quarter ended March Current quarter payments volume and other select metrics are provided in the operational performance data supplement to provide more recent operating data. Service revenues continue to be recognized based on payments vo
Slide 6: Payments Volume
Payments Volume US$ in billions, nominal, except percentages Quarter ended December 2008 2009 438 409 197 161 47 64 47 38 20 23 United States Asia Pacific Latin America and Canada Central and Caribbean Eastern Europe, Middle East and Africa YOY Change (nominal) 7% 22% 38% 22% 16% YOY Change (constan
Slide 7: Payments Volume
Payments Volume US$ in billions, nominal, except percentages Quarter ended March Current quarter payments volume and other select metrics are provided in the operational performance data supplement to provide more recent operating data. Service revenues continue to be recognized based on payments vo
Slide 8: Transactions – Q2 2010
Transactions – Q2 2010 in millions, except percentages Quarter ended December Quarter ended March 2008 16,619 16,090 2009 2009 14,898 2010 14,305 Credit Credit Credit Credit 10,924 10,648 39% 37% 37% 36% 9,797 9,360 Debit Debit Debit Debit 61% 63% 63% 64% Total Transactions Processed Total Transacti
Slide 9: Total Cards
Total Cards in millions, except percentages Quarter ended December 2008 1,808 2009 1,717 1,024 905 813 784 Credit Debit Visa Inc. YOY (4%) 13% 5% Change Note: From time to time, previously submitted cards information may be updated. Prior year cards information presented has not been updated, as cha
Slide 10: Revenue – Q2 2010
Revenue – Q2 2010 US$ in millions, except percentages Fiscal 2009 Fiscal 2010 2,331 1,942 1,959 1,647 (295) (372) Gross Net Operating Revenues Incentives Revenues YOY 20% 26% 19% Change Note: Growth rates calculated based on whole numbers, not rounded numbers. Fiscal Q2 2010 Earnings Results 10
Slide 11: Revenue Detail – Q2 2010
Revenue Detail – Q2 2010 US$ in millions, except percentages Fiscal 2009 Fiscal 2010 885 804 728 544 545 446 148 173 Service Data International Other Revenues Processing Transaction Revenues Revenues Revenues YOY 10% 34% 22% 17% Change Note: Growth rates calculated based on whole numbers, not rounde
Slide 12: Operating Margin – Q2 2010
Operating Margin – Q2 2010 US$ in millions, except percentages Fiscal 2009 Fiscal 2010 57% 54% 1,959 1,647 1,122 837 881 766 Operating Margin Net Operating Total Operating Operating Income Revenues Expenses YOY 3 ppts 19% 9% 27% Change Note: Growth rates calculated based on whole numbers, not rounde
Slide 13: Operating Expenses – Q2 2010
Operating Expenses – Q2 2010 US$ in millions, except percentages 837 Fiscal 2009 Fiscal 2010 766 310 292 238 196 92 98 64 62 66 77 50 56 0 2 Professional Network, Advertising, and Depreciation EDP and Marketing and Consulting and Administrative Litigation Total Operating Personnel Communications Pro
Slide 14: Other Financial Results
Other Financial Results • Cash, cash equivalents, restricted cash and available-for-sale investment securities of $6.3 billion at the end of the fiscal second quarter which includes $1.6 billion of restricted cash for litigation escrow • Fiscal second quarter free cash flow of $618 million • Utilize
Slide 15: Financial Metrics for Fiscal Year 2010
Financial Metrics for Fiscal Year 2010 High end of Annual net revenue growth 11-15% range Volume and support incentives as % High end of of gross revenues 16-17% range Less than Advertising, marketing and promotion expenses $1 billion Mid to high Annual operating margin 50% range Fiscal Q2 2010 Earn
Slide 16: Financial Metrics for Fiscal Year 2010
Financial Metrics for Fiscal Year 2010 36.5 to 38.5% GAAP tax rate range Annual diluted class A common stock earnings 20% + per share growth FY10: $200-250 million About $200 Capital Expenditures FY11: million Annual free cash flow $2 billion + Fiscal Q2 2010 Earnings Results 16
Slide 17: Financial Metrics for Fiscal Year 2011
Financial Metrics for Fiscal Year 2011 Annual diluted class A common stock earnings 20% + per share growth Annual free cash flow $2 billion + Fiscal Q2 2010 Earnings Results 17
Slide 18: Appendix
Appendix Reconciliation of Non-GAAP Measures
Slide 19: Calculation of Free Cash Flow
Calculation of Free Cash Flow US$ in millions Additions (+) / Reductions (-) to Net income For the three For the six attributable to months ended months ended Visa Inc. March 31, 2010 March 31, 2010 Net income attributable to Visa Inc. (as reported) 713 1,476 Capital Assets + Depreciation and amorti