Visa Inc. · NYSE:V
Visa — Q3 2015 Earnings Presentation
16 slides from Visa's earnings presentation, Jul 23, 2015
Slide 1: Visa Inc. Fiscal Third Quarter 2015 Financial Results
Visa Inc. Fiscal Third Quarter 2015 Financial Results July 23, 2015
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 "estimates," "expectation,“ “outlook,” "will," "continued" and other
Slide 3: Solid Fiscal Third Quarter Results
Solid Fiscal Third Quarter Results Solid operating revenues of $3.5 billion, up 12% over prior year Adjusted quarterly net income of $1.8 billion and diluted earnings per share of $0.74 Repurchased 15.5 million shares of class A common stock in the open market at an average price of $68.05 per share
Slide 4: Payments Volume
Payments Volume US$ in billions, nominal, except percentages Quarter ended March 2014 2015 1,168 INTL = International 1,108 U.S. U.S. 687 731 575 628 U.S. U.S. 269 303 421 437 INTL INTL U.S. U.S. INTL INTL 533 540 305 325 417 428 INTL 115 INTL 111 Total Visa Inc. Credit Debit YOY Change 4% (nominal)
Slide 5: Payments Volume
Payments Volume US$ in billions, nominal, except percentages Quarter ended June 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 recog
Slide 6: Transactions
Transactions in millions, except percentages Quarter ended June 26,961 2014 24,542 2015 37% 38% Credit Credit 18,024 16,662 Credit Credit 38% 38% 63% 62% Debit Debit Debit 62% Total Transactions Processed Transactions YOY Change 10% 8% Note: Processed transactions represent transactions involving Vi
Slide 7: Total Cards
Total Cards in millions, except percentages Quarter ended March 2014 2015 2,420 2,253 1,556 1,437 817 864 Visa Inc. Credit Debit YOY Change 7% 6% 8% Note: The data presented is based on results reported quarterly by Visa clients on their operating certificates. Estimates may be utilized if data is u
Slide 8: Revenue – Q3 2015
Revenue – Q3 2015 US$ in millions, except percentages Fiscal 2014 Fiscal 2015 4,188 3,793 3,518 3,155 (638) (670) Gross Revenues Client Net Operating Incentives Revenues YOY Change 10% 5% 12% Fiscal 2015 % of Gross Revenues 16% 84% Note: Figures may not recalculate exactly due to rounding. Percentag
Slide 9: Revenue Detail – Q3 2015
Revenue Detail – Q3 2015 US$ in millions, except percentages Fiscal 2014 Fiscal 2015 1,550 1,417 1,400 1,321 1,039 860 195 199 Service Revenues Data Processing International Other Revenues Revenues Transaction Revenues YOY Change 9% 6% 21% 2% Note: Figures may not recalculate exactly due to rounding
Slide 10: Operating Margin – Q3 2015
Operating Margin – Q3 2015 US$ in millions, except percentages Fiscal 2014 Fiscal 2015 3,518 3,155 64% 64% 2,262 2,020 1,256 1,135 Net Operating Total Operating Operating Operating Revenues Expenses Income Margin YOY Change 12% 11% 12% — Note: Operating margin is calculated as operating income divid
Slide 11: Operating Expenses – Q3 2015
Operating Expenses – Q3 2015 US$ in millions, except percentages Fiscal 2014 Fiscal 2015 566 463 228 224 127 117 130 126 137 109 82 82 Personnel Marketing Network & Professional Depreciation & General & Processing Fees Amortization Administrative YOY Change 22% (1%) (8%) — 19% 8% Note: Figures may n
Slide 12: Other Financial Results
Other Financial Results • Cash, cash equivalents and available-for-sale investment securities of $8.0 billion at the end of the fiscal third quarter • Free cash flow of $2.1 billion for the fiscal third quarter • Capital expenditures of $74 million during the fiscal third quarter 12 Fiscal Third Qua
Slide 13: Financial Metrics for Fiscal Year 2015
Financial Metrics for Fiscal Year 2015 • Constant dollar revenue growth of low double digits Annual net revenue growth • Negative 2.5 ppts foreign currency impact Client incentives as % of gross revenues • Low-end of the 17.5% - 18.5% range Annual operating margin • Mid 60s Tax rate • 29% to 30% ran
Slide 14: Appendix
Appendix
Slide 15: Reconciliation of Non-GAAP Financial Results
Reconciliation of Non-GAAP Financial Results US$ in millions, except per share data During the third quarter of fiscal 2015, we recorded an increase of $110 million in the fair value of the Visa Europe put option, resulting in the recognition of non-cash, non-operating expense that we do not believe
Slide 16: Calculation of Free Cash Flow
Calculation of Free Cash Flow US$ in millions Additions (+) / Reductions (-) to Three Months Ended Nine Months Ended Net Income June 30, 2015 June 30, 2015 Net income (as reported) 1,697 4,816 Capital Assets + Depreciation and amortization 130 375 - Capital expenditures (74) (276) 56 99 Litigation +