Slide 1: Second Quarter 2023 Financial Results Conference Call
Mastercard Incorporated Second Quarter 2023 Financial Results Conference Call July 27, 2023
Slide 2: Business Update
Business Update Key Trends Business Highlights Financial Overview ©2023 Mastercard July 27, 2023 2
Slide 3: 2nd Quarter Selected Financial Performance
2nd Quarter Selected Financial Performance ($ in millions, except per share data) 2Q 23 2Q 22 YOY Growth Non-GAAP Non-GAAP As adjusted Currency-neutral Adjusted net revenue $ 6,269 $ 5,491 14% 15% Adjusted operating expenses 2,592 2,313 12% 13% Adjusted operating income 3,677 3,178 16% 16% Adjusted
Slide 4: 2nd Quarter Gross Dollar Volume (GDV)
2nd Quarter Gross Dollar Volume (GDV) ($ in billions) Worldwide United States Rest of World 12% Growth 6% Growth 16% Growth $2,058 $2,267 $2,200 $2,000 $1,800 $1,550 $1,379 $1,600 $1,188 $1,074 $1,400 $1,200 $844 $1,000 $679 $717 $738 $800 $600 $1,079 $345 $400 $984 $336 $641 $706 $200 $344 $373 $0
Slide 5: Switched Transactions and Cards
2nd Quarter Switched Transactions and Cards Switched Transactions Cards 17% Growth 8% Growth 4,000 40 3,221 35.5 2,977 3,000 387 Transactions (in billions) Cards (in millions) 30.4 386 30 2,000 20 2,834 2,591 1,000 10 0 0 2Q22 2Q23 2Q22 2Q23 Mastercard Cards Maestro Cards ©2023 Mastercard Note: Figu
Slide 6: 2nd Quarter Net Revenue
2nd Quarter Net Revenue ($ in millions) 2Q22 2Q23 $7,000 $6,269 $6,000 $5,497 $5,000 1 1 $4,073 $4,000 $3,609 $3,000 $2,196 $1,888 $2,000 $1,000 $0 Value-added Payment Network Services and Solutions Total Net Revenue GAAP 13% 16% 14% Currency-neutral 14% 16% 15% Adjusted Currency-neutral 15% ©2023 M
Slide 7: Key Metrics related to the Payment Network
2nd Quarter Key Metrics related to the Payment Network ($ in millions) 2Q22 2Q23 $6,000 $5,000 $4,000 $2,979 $3,000 $2,468 $2,572 $2,251 $2,050 $2,000 $1,612 $1,000 $213 $270 $0 Cross-Border Transaction Other Domestic Assessments Assessments Processing Assessments Network Assessments Increase/(Decre
Slide 8: Adjusted Operating Expenses
2nd Quarter Adjusted Operating Expenses ($ in millions) 2Q22 2Q23 $3,000 $2,592 $2,500 $2,200 $2,313 $1,914 $2,000 $1,500 $1,000 $500 $210 $201 $189 $192 $0 Growth General & Administrative Advertising & Marketing Depreciation & Amortization Adjusted Operating Expenses Non-GAAP 15% (4)% 2% 12% Curren
Slide 9: Business Update Through July 21st
st Business Update Through July 21 Year-over-year growth % Current period as a percentage of 20191,2 2023 2023 Jul 21 Jul 21 Q1 Apr May Jun Q2 Q1 Apr May Jun Q2 MTD MTD 3 Switched volume 18% 16% 15% 14% 15% 14% 179% 180% 178% 176% 178% 178% United States 10% 6% 8% 6% 7% 7% 156% 157% 156% 154% 155% 1
Slide 10: Looking Ahead
Looking Ahead Further thoughts for 2023 ©2023 Mastercard July 27, 2023 10
Slide 11: Appendices
Appendices
Slide 12: Non-GAAP Reconciliation
Appendix A Non-GAAP Reconciliation ($ in millions, except per share data) Three Months Ended June 30, 2023 Diluted Operating Operating Operating Other income Effective earnings per Net revenue expenses income margin (expense) income tax rate Net income share Reported - GAAP $ 6,269 $ 2,613 $ 3,656 5
Slide 13: Non-GAAP Reconciliation (continued)
Appendix A (continued) Non-GAAP Reconciliation Three Months Ended June 30, 2023 as compared to the Three Months Ended June 30, 2022 Increase/(Decrease) Operating Operating Operating Effective income Diluted earnings Net revenue expenses income margin tax rate Net income per share Reported - GAAP 14
Slide 14: Non-GAAP Reconciliation: 2023 financial outlook
Appendix B Non-GAAP Reconciliation 2023 financial outlook Prior 2023 vs. 2022 Updated 2023 vs. 2022 Increase/(Decrease) Increase/(Decrease) Net Revenue Operating Expenses Net Revenue Operating Expenses 1 High-single- High-single- Forecasted Growth - GAAP Low-teens Low-teens digits digits 2,3 Litigat
Slide 15: Non-GAAP Reconciliation: Third quarter 2023 outlook
Appendix C Non-GAAP Reconciliation Third quarter 2023 financial outlook Q3'23 vs. Q3'22 Increase/(Decrease) Net Revenue Operating Expenses 1 Forecasted Growth - GAAP Low-teens Low-single-digits 2 Litigation provisions ** 9% Non-GAAP Growth Low-teens Low-double-digits 3 Currency impact ~(3)% (1-2)% 4
Slide 16: Key Metrics related to the Payment Network
Appendix D Key Metrics related to the Payment Network • Domestic assessments are charges based on activity related to cards that carry the Company’s brands where the merchant country and the country of issuance are the same. These assessments are primarily driven by the domestic dollar volume of act
Slide 17: Business Update Through July 21st Excluding Russia
Appendix E st 1 Business Update Through July 21 Excluding Russia 2,3 Year-over-year growth % Current period as a percentage of 2019 2023 2023 July 21 July 21 Q1 Apr May Jun Q2 Q1 Apr May Jun Q2 MTD MTD 4 Switched volume 21% 16% 15% 14% 15% 14% 184% 185% 183% 181% 183% 183% United States 10% 6% 8% 6%