Visa Inc. · NYSE:V
Visa — Q4 2014 Earnings Presentation
17 slides from Visa's earnings presentation, Oct 29, 2014
Slide 1: Visa Inc. Fiscal Fourth Quarter 2014 Financial Results
Visa Inc. Fiscal Fourth Quarter 2014 Financial Results October 29, 2014
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 "believes," "estimates," "expects," "intends," "may," "projects," "co
Slide 3: Solid Fiscal Fourth Quarter Results
Solid Fiscal Fourth Quarter Results Solid operating revenues of $3.2 billion, up 9% over prior year Adjusted quarterly net income of $1.4 billion and adjusted diluted earnings per share of $2.18, up 14% and 17%, respectively, over prior year Total as-converted class A common stock was reduced by 5.7
Slide 4: Payments Volume
Payments Volume US$ in billions, nominal, except percentages Quarter ended June 2013 2014 1,191 INTL = International 1,089 U.S. U.S. 571 628 744 682 U.S. U.S. 303 447 270 407 INTL INTL INTL INTL U.S. U.S. 519 563 412 440 300 324 INTL 107 INTL 123 Total Visa Inc. Credit Debit YOY Change (nominal) 9%
Slide 5: Payments Volume
Payments Volume US$ in billions, nominal, except percentages Quarter ended September 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
Slide 6: Transactions
Transactions in millions, except percentages Quarter ended September 2013 2014 25,073 22,940 Credit Credit 38% 38% 16,943 15,491 Debit Debit 62% 62% Total Transactions Processed Transactions YOY 9% 9% Change Note: Processed transactions represent transactions involving Visa, Visa Electron, Interlink
Slide 7: Total Cards
Total Cards in millions, except percentages Quarter ended June 2013 2014 2,298 2,144 1,467 1,346 798 831 Visa Inc. Credit Debit YOY Change 7% 4% 9% Note: The data presented is based on results reported quarterly by Visa clients on their operating certificates. Estimates may be utilized if data is un
Slide 8: Revenue – Q4 2014
Revenue – Q4 2014 US$ in millions, except percentages Fiscal 2013 Fiscal 2014 3,997 3,653 3,229 2,973 (680) (768) Gross Revenues Client Net Operating Incentives Revenues YOY Change 9% 13% 9% Fiscal 2014 % of Gross Revenues 19% 81% Note: Figures may not recalculate exactly due to rounding. Percentage
Slide 9: Revenue Detail – Q4 2014
Revenue Detail – Q4 2014 US$ in millions, except percentages Fiscal 2013 Fiscal 2014 1,499 1,385 1,348 1,186 899 938 183 212 Service Revenues Data Processing International Other Revenues Revenues Transaction Revenues YOY Change 8% 14% 4% 16% Note: Figures may not recalculate exactly due to rounding.
Slide 10: Adjusted Operating Margin – Q4 2014
Adjusted Operating Margin – Q4 2014 US$ in millions, except percentages Fiscal 2013 Fiscal 2014 3,229 62% 2,973 59% 2,002 1,751 1,222 1,227 Net Operating Total Operating Operating Operating Revenues Expenses Income Margin YOY Change 9% -% 14% 3ppts Note: Operating margin is calculated as operating i
Slide 11: Adjusted Operating Expenses – Q4 2014
Adjusted Operating Expenses – Q4 2014 US$ in millions, except percentages Fiscal 2013 Fiscal 2014 499 496 236 241 153 122 128 130 129 94 106 112 0 3 Personnel Marketing Network & Professional Depreciation & General & Litigation Processing Fees Amortization Administrative Provision YOY Change (1%) 2%
Slide 12: Other Financial Results
Other Financial Results • Cash, cash equivalents and available-for-sale investment securities of $6.9 billion at the end of the fiscal fourth quarter • Free cash flow of $1.5 billion for the fiscal fourth quarter • Capital expenditures of $227 million during the fiscal fourth quarter 12 Fiscal Fourt
Slide 13: Financial Metrics for Fiscal Year 2015
Financial Metrics for Fiscal Year 2015 • Constant dollar revenue growth of low double digits Annual net revenue growth • Negative 2 ppts foreign currency impact Client incentives as % of gross revenues • 17.5% - 18.5% range Annual operating margin • Mid 60s Tax rate • Low 30s Annual diluted class A
Slide 14: Appendix
Appendix
Slide 15: Reconciliation of Non-GAAP Financial Results
Reconciliation of Non-GAAP Financial Results US$ in millions, except percentages and per share data During the fourth quarter of fiscal 2014, we recorded a provision of $450 million and related tax benefits associated with litigation covered by the retrospective responsibility plan ("litigation prov
Slide 16: Calculation of Free Cash Flow
Calculation of Free Cash Flow US$ in millions Additions (+) / Reductions (-) to Net Three Months Ended Twelve Months Ended income September 30, 2014 September 30, 2014 Net income (as reported) 1,073 5,438 Capital Assets + Depreciation and amortization 112 435 - Capital expenditures (227) (553) (115)
Slide 17: Visa Cross-Border Volume Growth Disclosure
Visa Cross-Border Volume Growth Disclosure The table below represents cross-border volume growth for cards carrying the Visa, Visa Electron, Interlink and PLUS brands, including Visa Europe data. Cross-border volume refers to payments and cash volume where the issuing country is different from the m