Slide 1: Financial Perspective – 2013 Investment Community Meeting
Martina Hund-Mejean Chief Financial Officer September 11, 2013 Financial Perspective 2013 Investment Community Meeting ©2013 MasterCard. Proprietary and Confidential
Slide 2: Topics for Today
Topics for Today 2013 Outlook Investments for Growth Capital Planning Long-Term Outlook
Slide 3: 2013 YTD Business Drivers
2013 YTD Business Drivers As Reported Processed Growth Q1 Q2 Q2 Jul / Aug Trend Worldwide GDV 12% 13% 11% 13% US GDV 4% 6% 7% 9% Rest of World GDV 16% 17% 16% 17% Processed Transactions 12% 11% 11% 14% Cross Border Volume 16% 17% 17% 18%
Slide 4: 2013 Financial Outlook
2013 Financial Outlook Net Revenue 2nd Half revenue growth similar to 1st Half of 12% Operating Slightly below the 8% currency-adjusted 2012 growth Expense Some operating margin expansion Tax Rate Approximately 31% FX Impact Minimal net impact on Revenue, Net Income and EPS Euro and Real MasterCard
Slide 5: Invested $1.9B for Growth 2011-2013F
Invested $1.9B for Growth 2011-2013F Organic of $0.9B and $1.0B Through Acquisitions Delivering • Products Sales and Marketing Growth Acceptance Advisors 35% Expansion/ • Loyalty and Rewards Information Services Innovation Access Prepaid, DataCash Digital (Mobile, MasterPass, Priceless Cities) 43% M
Slide 6: M&A Considerations
M&A Considerations Strategic Fit Selection Criteria • Address Strategic Priorities • Provide Critical Capabilities – Products / Services – Technology – Distribution – Geographic Reach • Financially Attractive • Acceptable Risk Profile • Manageable Integration • Management Strength, Talent, Culture
Slide 7: Capital Planning – Priorities
Capital Planning – Priorities Strong Preserve strong balance sheet, liquidity and Balance Sheet credit ratings Long-Term Investments in organic opportunities and M&A Business Growth Return Excess Cash Continue to return excess cash with bias to Shareholders towards share repurchases
Slide 8: Return of Capital – Historical Perspective
Return of Capital – Historical Perspective Share Repurchase & Dividends $2.5 Share Repurchase $2.0 Dividends $1.9 $0.1 $1.4 $1.5 billions $1.2 $0.1 in $0.1 $ $1.0 $1.8 $1.3 $1.1 $0.5 $0.0 2011 2012 1H 2013 % of Period * 54% 97% 94% Cash Flow * Period Cash Flow = Net change in cash and investments (c
Slide 9: Three Drivers of Growth
Three Drivers of Growth Personal Consumption Expenditure Cash & Check vs. Electronic Payments MasterCard Share of Electronic Payments
Slide 10: Long-Term Revenue Growth
Long-Term Revenue Growth 2011-2016E CAGR (in %) Strategic Low-Mid Secular 9-11% (1%) Investments Teens Growth Adj. for 8-10% 4-6% Available Market 5% Global Industry MA Market MasterCard PCE Purchase Volume Opportunity Long-Term Revenue Source: EIU, Euromonitor and internal estimates
Slide 11: Longer-Term Performance Objectives 2013–2015
Longer-Term 2013 – 2015 Performance Objectives* Net Revenue 11-14% CAGR Growth Operating Minimum 50% annually Margin Earnings Per Share At least 20% CAGR Growth Rate * On a constant currency basis and excluding future acquisitions
Slide 12: Forward-Looking Statements
Forward-Looking Statements Today’s presentation may contain, in addition to historical information, forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements are based on our current assumptions, expectations and projectio