Mastercard Incorporated · NYSE:MA
Mastercard — Q2 2012 Earnings Presentation
10 slides from Mastercard's earnings presentation, Aug 1, 2012
Slide 1: Second-Quarter 2012 Financial Results Conference Call
MasterCard Incorporated Second-Quarter 2012 Financial Results Conference Call August 1, 2012
Slide 2: Business Update
Business Update • Operational Overview • Economic Update • Business Highlights 2
Slide 3: 2nd Quarter Selected Financial Performance
2nd Quarter Selected Financial Performance ($ in millions, except per share data) 2Q 12 Non-GAAP YOY excl. special item* 2Q 11 Growth Net revenue $ 1,820 $ 1,667 9% Total operating expenses 826 782 6% Operating income 994 885 12% Operating margin 54.6% 53.1% 1.5 ppts Net income $ 713 $ 608 17% Dilut
Slide 4: 2nd Quarter Gross Dollar Volume (GDV)
2nd Quarter Gross Dollar Volume (GDV) ($ in billions) $1,100 Worldwide 15% Growth $1,000 $890 Rest of World $900 19% Growth $813 $800 $700 $368 $325 $599 $600 United States $546 $500 9% Growth $219 $195 $400 $291 $300 $267 $488 $522 $200 $130 $149 $351 $380 $100 $137 $142 $0 2Q 11 2Q 12 2Q 11 2Q 12
Slide 5: Processed Transactions and Cards
2nd Quarter Processed Transactions and Cards Processed Transactions Cards 9,000 29% Growth 9% Growth 2,000 8,000 1,836 1,800 1,692 7,000 1,600 Transactions (in millions) 6,000 1,400 729 678 Cards (in millions) 5,000 1,200 4,000 8,537 1,000 3,000 6,601 800 600 2,000 1,014 1,107 400 1,000 200 0 0 2Q 1
Slide 6: 2nd Quarter Revenue
2nd Quarter Revenue ($ in millions) 2Q 11 2Q 12 $2,000 $1,667 $1,820 $1,500 $809 $893 $1,000 $511 $566 $630 $753 $50 0 $251 $269 $0 -$50 0 -$1,000 ($534) ($661) -$1,500 Domestic Cross-Border Transaction Other Rebates and Total N et Assessments Volume Fees Processing Revenues Incentives Revenue Fees
Slide 7: 2nd Quarter Operating Expenses
2nd Quarter Operating Expenses ($ in millions) 2Q 11 2Q 12 $1,000 $826 $782 $800 $591 $600 $540 $400 $193 $179 $200 $49 $56 $0 General Advertis ing Deprec iation Total & & & Operating Adminis trative Marketing Amortization Expenses +10% (7%) +13% +6% +9% Constant Currency Note: Figures may not sum d
Slide 8: Thoughts for the Future
Thoughts for the Future • Business update through July 28 • Thoughts for 2012 o Net Revenue o Operating Expenses o Tax Rate • Long-term financial objectives 8
Slide 9: MasterCard Worldwide: The Heart of Commerce
MasterCard Worldwide The Heart of Commerce”
Slide 10: GAAP Reconciliation
Appendix GAAP Reconciliation ($ in millions, except per share data) Three Months Ended Three Months Ended June 30, 2012 June 30, 2011 Actual Special Item Non -GAAP Actual Provision for litigation settlement $ 20 $ (20) $ - $ - Total operating expenses 846 (20) 826 782 Operating income 974 20 994 885