Mastercard Incorporated · NYSE:MA
Mastercard — Q1 2007 Earnings Presentation
10 slides from Mastercard's earnings presentation, May 2, 2007
Slide 1: MasterCard Incorporated Quarter Financial Results Conference Call
May 2, 2007 Exhibit 99.2 MasterCard Incorporated Quarter Financial Results Conference Call
Slide 2: Quarter Financial Results
2 • Delivered net income of $215 million and earnings per share of $1.57, on a diluted basis • Achieved record revenue growth of 23.9% primarily due to: Gross dollar volume growth (16.4% to $509 billion) Increase in processed transactions (19.4% to 4.2 billion) Restructured cross-border pricing (imp
Slide 3: Quarter Selected Financial Performance
3 82.7% (66) (121) Tax Expense 34.9% (11) (14) Interest Expense (4.1%) 25 24 Depreciation and Amortization $ 0.94 127 21 183 24.7% 183 348 $ 739 Actual 1Q 06 67.0% $ 1.57 Diluted EPS 69.6% 215 Net Income (2.3%) 178 Advertising and Marketing 75.2% 36 Investment Income 14.6% 399 General and Administra
Slide 4: MasterCard Branded Volume (GDV) First Quarter 2007
4 Note: Figures may not sum due to rounding 15.7 15.7 237 United States 16.4 19.1 509 Worldwide 14.2 12.7 18 Canada 47.0 36.0 9 South Asia/Middle/East Africa (SAMEA) 15.1 18.5 69 Asia Pacific 23.9 21.8 34 Latin America 15.2 25.0 141 Europe Local Currency U.S. Dollar GDV ($ billions) YOY Growth Rate
Slide 5: Quarter Revenue - Assessments
5 $262 $244 $0 $50 $100 $150 $200 $250 $300 1Q06 1Q07 20% 30% 40% 50% 60% 70% 80% Net Assessment Fees Net Assessment Fees as a % of Gross Assessment Fees • Net assessments increased $18 or 7.4% to $262 • Gross assessments increased $49 or 11.9% over 2006. Key drivers include: GDV growth: 16.4% Restr
Slide 6: Quarter Revenue - Operations Fees
6 • Net operations fees up $158 or 31.9% to $653 • Gross operations fees increased $181 or 33.3% over 2006. Key drivers include increases in: – Processed transactions growth: 19.4% – GDV growth: 16.4% – Restructured pricing, including $31 million reclassification from assessments • Net operations fe
Slide 7: Quarter Operating Expenses
7 $0 $100 $200 $300 $400 $500 1Q06 1Q07 General & Administrative Advertising & Marketing Depreciation & Amortization • Total operating expenses increased 8.2% to $601 • G&A increased 14.6% or $51: – Driven by increases in personnel costs and professional fees • Advertising and market development dec
Slide 8: Cash Flow Statement and Balance Sheet Highlights
8 • Cash, cash equivalents and available-for-sale securities of $2.5 billion • Stockholders’ equity at $2.6 billion • Prepaid expenses increased $60 million primarily due to timing of payments related to advertising and amounts due to customers under incentive agreements • Accrued expenses decreased
Slide 9: 2nd Quarter 2007 Items for Consideration
9 • No “grow-over” effect from April 2006 cross-border pricing restructuring • Rebates and incentives exclude large payment to debit issuer • Shift in “traditional” A&M expense to the second quarter to leverage opportunities • 2Q06 Special Items Litigation settlements ($23) Contribution of stock to
Slide 10: MasterCard Worldwide: The Heart of Commerce
MasterCard Worldwide The Heart of Commerce”