Smart Card Marketing Systems, Inc. · OTC:SMKG
Smart Card Marketing Systems — Q4 2022 Earnings Presentation
22 slides from Smart Card Marketing Systems's earnings presentation, Nov 4, 2022
Slide 1: Fiscal Fourth Quarter 2022 Financial Results
Fiscal Fourth Quarter 2022 Financial Results October 25, 2022 ©2022 Visa. All rights reserved.
Slide 2: Fiscal Fourth Quarter 2022 Results
Fiscal Fourth Quarter 2022 Results(1) Client Incentives Diluted Class A Net as a % of Operating Effective Income Common Stock YoY Increase / (Decrease) Revenues Gross Revenues Expenses Tax Rate Earnings Per Share GAAP Nominal-Dollar Basis 18.7% 26.9% 20.3% 19.1% 13.0% Non-GAAP Nominal-Dollar Basis(2
Slide 3: Fiscal Fourth Quarter 2022 Results and Other Highlights
Fiscal Fourth Quarter 2022 Results and Other Highlights • Fiscal fourth quarter payments volume and processed transaction growth remained strong, while cross-border volume continued to recover • Returned $2.9B of capital to shareholders in the form of share repurchases and dividends • The board of d
Slide 4: Non-GAAP and Adjusted Constant-Dollar Results Footnote
Non-GAAP and Adjusted Constant-Dollar Results Footnote We use non-GAAP and adjusted constant-dollar financial measures of our performance, which exclude certain items that we believe are not representative of our continuing operations, as they may be non-recurring or have no cash impact, and may dis
Slide 5: Operational Performance Metrics Monthly Growth
Operational Performance Metrics Monthly Growth 2021 - 2022 U.S. Payments Volume Growth Total Credit Debit Total Card Present Card Not Present Card Not Present, Excluding Travel U.S. Stimulus 100% 100% Payments 60% 60% 80% 80% 60% 40% 60% 40% 40% 40% 20% 20% 20% 20% 0% 0% 0% 0% (20%) (20%) (20%) Jan
Slide 6: Operational Performance Metrics Monthly Index vs. 3 years ago
Operational Performance Metrics Monthly Index vs. 3 years ago 2021 - 2022 U.S. Payments Volume Index vs. 3 years ago Total Credit Debit Total Card Present Card Not Present Card Not Present, Excluding Travel 180 180 170 170 160 160 150 150 140 140 130 130 120 120 110 110 100 100 Oct Nov Dec Jan Feb M
Slide 7: Operational Performance Metrics Monthly Growth
Operational Performance Metrics Monthly Growth 2021 - 2022 Processed Transactions Growth 60% 50% 40% 30% 20% 10% 0% Jan Apr Jul Oct Jan Apr Jul Oct 1-21 Note: February growth rate would have been 2% in 2021 if the impact of February 29, 2020 was excluded. Results are calculated over the comparable p
Slide 8: Operational Performance Metrics Monthly Index vs. 3 years ago
Operational Performance Metrics Monthly Index vs. 3 years ago 2021 - 2022 Processed Transactions Index vs. 3 years ago 150 140 130 120 110 100 Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct 1-21 Note: The charts reflect a comparison of volume and transactions indexed to three years ago, with Oc
Slide 9: Operational Performance Metrics Monthly Growth
Operational Performance Metrics Monthly Growth 2021 - 2022 Cross-Border Volume Growth 2021 - 2022 Cross-Border Volume Growth (Constant Dollar) Excluding Intra-Europe (Constant Dollar) Total Card Present + Card Not Present Travel Excluding Intra-Europe Total Card Not Present Card Not Present, Excludi
Slide 10: Operational Performance Metrics Monthly Index vs. 3 years ago
Operational Performance Metrics Monthly Index vs. 3 years ago 2021 - 2022 Cross-Border Volume Index vs. 3 years ago 2021 - 2022 Cross-Border Volume Index vs. 3 years ago (Constant Dollar) Excluding Intra-Europe (Constant Dollar) Total Card Present + Card Not Present Travel Excluding Intra-Europe Tot
Slide 11: Payments Volume Results Q4 FY2022
Payments Volume Results Nominal Q4 FY2022 Constant Visa Inc. Credit Debit 17% 11% 10% 5% 4% 0% Nominal USD (in billions) U.S. $1,479 $727 $752 International $1,450 $767 $683 Total $2,929 $1,494 $1,435 Note: The chart results are calculated over the comparable prior-year period. Refer to Operational
Slide 12: Payments Volume Results Q3 FY2022
Payments Volume Results Nominal Q3 FY2022 Constant Visa Inc. Credit Debit 20% 16% 12% 8% 5% 1% Nominal USD (in billions) U.S. $1,489 $729 $761 International $1,450 $760 $689 Total $2,939 $1,489 $1,450 Note: The chart results are calculated over the comparable prior-year period. Refer to Operational
Slide 13: Transactions and Cross-Border Volume Results
Transactions and Cross-Border Volume Results Q4 FY2022 Transactions Cross-Border 49% 36% 21% 12% 4% 5% Total Payments Processed Total Total Constant Nominal Constant (excluding (1) Transaction Count (in millions) Intra-Europe) (1) Cross-border volume excluding transactions within Europe. Credit 22,9
Slide 14: Total Cards (in millions)
Total Cards (in millions) 2021 Q3 FY2022 2022 Total Visa Inc. Credit Debit 9% 7% 10% 4,053 3,719 2,818 2,563 1,155 1,235 Note: The chart results are calculated over the comparable prior-year period. Refer to Operational Performance Data footnote for further information on these metrics. Fiscal Fourt
Slide 15: Operational Data Performance Footnote
Operational Data Performance Footnote 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 volume in the prior quarter. Total transactio
Slide 16: Revenue Results
Revenue Results Q4 FY2022 52% 19% 20% 19% 13% 11% 10% Service Data International Other Gross Client Net Revenues Processing Transaction Revenues Revenues Incentives Revenues Revenues Revenues Reported Nominal USD (in millions) $3,458 $3,765 $2,873 $551 $10,647 ($2,860) $7,787 Client Incentives as a
Slide 17: Operating Expenses Results
Operating Expenses Results Q4 FY2022 712% 58% 30% 25% 20% 12% (6%) (4%) Network & Professional Depreciation & General & Litigation Total Personnel Marketing Operating Processing Fees Amortization Administrative Provision Expenses Reported Nominal USD (in millions) $1,356 $429 $185 $163 $226 $338 $3
Slide 18: Reconciliation of GAAP to Non-GAAP Financial Results
Reconciliation of GAAP to Non-GAAP Financial Results Three Months Ended September 30, 2022 Non- Diluted operating Income Effective Earnings Operating Income Tax Income Net Per Expenses (Expense) Provision Tax Rate(1) Income Share(1) (in millions, except percentages and per share data) As reported $
Slide 19: Reconciliation of GAAP to Non-GAAP Financial Results - continued
Reconciliation of GAAP to Non-GAAP Financial Results - continued Three Months Ended September 30, 2022 Network Depreciation General Total and Professional and and Litigation Operating YoY Personnel Marketing Processing Fees Amortization Administrative Provision Expenses Change (in millions, except p
Slide 20: Reconciliation of GAAP to Non-GAAP Financial Results - continued
Reconciliation of GAAP to Non-GAAP Financial Results - continued Gains and losses on equity investments. Gains and losses on equity investments include periodic non-cash fair value adjustments and gains and losses upon sale of an investment. These long-term investments are strategic in nature and ar
Slide 21: Free Cash Flow
Free Cash Flow We had cash, cash equivalents and investment securities of $20.7 billion as of September 30, 2022. (USD in millions) Calculation of Free Cash Flow Q4 2022 Q4 2022 YTD Net cash provided by operating activities $5,876 $18,849 Less: capital expenditures (295) (970) (1) Free cash flow $5,
Slide 22: 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 that relate to, among other things, our future operations, prospects, developments, strategies, business growth and anticipated timing and
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