Slide 1: Mastercard Incorporated Third-Quarter 2017 Financial Results Conference Call
Mastercard Incorporated Third-Quarter 2017 Financial Results Conference Call October 31, 2017
Slide 2: Business Update, Financial & Operational Overview
Business Update Financial & Operational Overview Economic Update Business Highlights ©2017 Mastercard. Proprietary and Confidential October 31, 2017 2
Slide 3: 3rd Quarter Selected Financial Performance
3rd Quarter Selected Financial Performance ($ in millions, except per share data) YOY Growth Reported Currency 3Q 17 3Q 16 GAAP Neutral Net revenue $ 3,398 $ 2,880 18% 17% Total operating expenses 1,457 1,210 20% 19% Operating income 1,941 1,670 16% 14% Operating margin 57.1% 58.0% (0.9) ppt (1.1) p
Slide 4: Gross Dollar Volume (GDV)
3rd Quarter Gross Dollar Volume (GDV) ($ in billions) Worldwide Rest of World 10% Growth United States 12% Growth 10% Adjusted Growth* 6% Growth 12% Adjusted Growth* $1,600 $1,400 $1,353 $1,219 $1,200 $1,000 $647 $947 $572 $836 $800 $439 $600 $371 $383 $406 ©2017 Mastercard. Proprietary and Confiden
Slide 5: Switched Transactions and Cards
3rd Quarter Switched Transactions and Cards Switched Transactions Cards 17% Growth 6% Growth 17,500 16,851 3,000 2,408 Transactions (in millions) 15,000 14,452 2,500 2,271 Cards (in millions) 2,000 628 12,500 659 10,000 1,500 1,780 7,500 1,612 1,000 ©2017 Mastercard. Proprietary and Confidential 5,0
Slide 6: Revenue
3rd Quarter Revenue ($ in millions) 3Q16 3Q17 $4,000 $3,398 $2,880 $3,000 $2,000 $1,662 $1,132 $1,302 $1,157 $1,357 $996 $747 $1,000 $620 $0 -$1,000 -$2,000 $(1,225)$(1,470) ©2017 Mastercard. Proprietary and Confidential Domestic Cross-Border Transaction Other Rebates and Assessments Volume Fees Pro
Slide 7: Operating Expenses
3rd Quarter Operating Expenses ($ in millions) 3Q16 3Q17 $1,600 $1,457 $1,400 $1,210 $1,136 $1,200 $933 $1,000 $800 $600 $400 $184 $203 $93 $118 $200 $0 ©2017 Mastercard. Proprietary and Confidential General & Administrative Advertising & Marketing Depreciation & Amortization Total Operating Expense
Slide 8: Looking Ahead
Looking Ahead Business update through October 28th Thoughts for 2017 ©2017 Mastercard. Proprietary and Confidential October 31, 2017 8
Slide 9: Appendix
Appendix
Slide 10: Appendix A: Non-GAAP Reconciliation, 2017 full-year financial outlook
Appendix A Non-GAAP Reconciliation 2017 full-year financial outlook 2017 vs. 2016 Increase/(Decrease) Net revenue Operating expenses Mid-teens High end of low-double Forecasted growth - U.S. GAAP 1 digits Special items 2 — 2% Acquisitions (2)% (6)% ©2017 Mastercard. Proprietary and Confidential Fore