Mastercard Incorporated · NYSE:MA
Mastercard — Q1 2017 Earnings Presentation
12 slides from Mastercard's earnings presentation, May 2, 2017
Slide 1: Mastercard Incorporated First-Quarter 2017 Financial Results Conference Call
Mastercard Incorporated First-Quarter 2017 Financial Results Conference Call May 2, 2017
Slide 2: Business Update
Business Update Financial & Operational Overview Economic Update Business Highlights ©2017 Mastercard. Proprietary. May 2, 2017 2
Slide 3: 1st Quarter Selected Financial Performance
1st Quarter Selected Financial Performance ($ in millions, except per share data) YOY Growth* 1Q 17 Currency Non-GAAP* 1Q 16 Non-GAAP Neutral Net revenue $ 2,734 $ 2,446 12% 12% Total operating expenses 1,213 1,098 11% 11% Operating income 1,521 1,348 13% 13% Operating margin 55.6% 55.1% 0.5 ppt 0.3
Slide 4: 1st Quarter Gross Dollar Volume (GDV)
1st Quarter Gross Dollar Volume (GDV) ($ in billions) Worldwide Rest of World 5% Growth United States 6% Growth 8% Adjusted Growth* 2% Growth 11% Adjusted Growth* $1,143 $1,181 $771 $802 $372 $380 ©2017 Mastercard. Proprietary. * Adjusted for the impact of recent EU regulatory changes Notes: 1. Grow
Slide 5: 1st Quarter Switched Transactions and Cards
1st Quarter Switched Transactions and Cards Switched Transactions Cards 17% Growth 5% Growth 671 660 1,565 1,693 ©2017 Mastercard. Proprietary. Note: Figures may not sum due to rounding. May 2, 2017 5
Slide 6: 1st Quarter Revenue
1st Quarter Revenue ($ in millions) Domestic Cross-Border Transaction Other Rebates and Total Net Assessments Volume Fees Processing Revenues Incentives Revenue ©2017 Mastercard. Proprietary. Growth As-reported 16% 15% 16% 13% 23% 12% Currency- Neutral 15% 17% 16% 12% 23% 12% Note: Figures may not s
Slide 7: 1st Quarter Operating Expenses
1st Quarter Operating Expenses ($ in millions) General & Administrative Advertising & Marketing Depreciation & Amortization Total Operating Expenses* Growth ©2017 Mastercard. Proprietary. Non-GAAP 10% 25% (2)% 11% Currency- Neutral 10% 27% (1)% 11% Note: Figures may not sum due to rounding * Excludi
Slide 8: Looking Ahead
Looking Ahead Business update through April 28th Long-Term Performance Objectives Thoughts for 2017 ©2017 Mastercard. Proprietary. May 2, 2017 8
Slide 9: Appendices
Appendices
Slide 10: Appendix A Non-GAAP Reconciliation
Appendix A Non-GAAP Reconciliation ($ in millions, except per share data) Three Months Ended March 31, 2017 Effective Diluted Operating Operating Operating income tax earnings per expenses income margin rate Net income share ($ in millions, except per share data) Reported - GAAP $1,228 $1,506 55.1%
Slide 11: Appendix B Article 8 Impacts on Europe and Worldwide GDV and Purchase Volume Growth Rates
Appendix B Article 8 Impacts on Europe and Worldwide GDV and Purchase Volume Growth Rates Growth (Local Currency) 2015Q1 2015Q2 2015Q3 2015Q4 2016Q1 2016Q2 2016Q3 2016Q4 2017Q1 FY 2015 FY 2016 GDV Europe as reported 15% 17% 17% 16% 18% 14% 5% 3% 1% 16% 10% Europe normalized for Article 8 19% 20% 20%
Slide 12: Appendix C Non-GAAP Reconciliation
Appendix C Non-GAAP Reconciliation Full-Year Forecast 2017 2017 vs. 2016 Increase/(Decrease) Net revenue Operating expenses Forecasted growth 1 Low-double digits Low-double digits Special items 2 — 2% Acquisitions (2)% (6)% Foreign currency 3 1 - 2% 1% Non-GAAP - Excluding Special Items and Acquisit