Mastercard Incorporated · NYSE:MA
Mastercard — CLSA Asia Investors' Forum 2009
15 slides from Mastercard's conference presentation, Feb 10, 2009
Slide 1: Emerging Opportunities During Challenging Times
Walt Macnee President, International Markets February 10, 2009 Emerging Opportunities During Challenging Times CLSA Asia Investors' Forum 2009
Slide 2: Forward-Looking Statements
Forward-Looking Statements Today’s presentations may contain, in addition to historical information, forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements are based on our current assumptions, expectations and projecti
Slide 3: Challenging Times Continue
Challenging Times Continue GDP Growth (Percent change) Source: IMF staff estimates 3
Slide 4: A Global State of the Union
A Global State of the Union • The global economic slowdown has impacted every corner of the world – no nation is immune • Consumer spending patterns and industry consolidation are changing the financial industry – in ways we never imagined • We need to work smarter and more thoughtfully to move busi
Slide 5: A Strong Business Model
A Strong Business Model • MasterCard offers a differentiated value proposition: – A truly global structure – Limited consumer risk – A globally diversified business • The secular shift away from cash and check continues • Continue to proactively manage regulatory issues • Operating leverage 5
Slide 6: FY 2008 Selected Financial Performance
FY 2008 Selected Financial Performance 2008 adjusted 2007 adjusted YOY 2008 for special for special adjusted Actual items* items* Growth % Net revenue $ 4,992 $ 4,992 $ 4,068 22.7 Total operating expenses 5,526 3,043 2,956 2.9 Operating income (535) 1,948 1,111 72.2 Operating margin 10.7% 39.0% 23.3
Slide 7: MA Purchase Volume 4th Quarter 2008
MA Purchase Volume 4th Quarter 2008 Purchase Volume Local Currency Growth Rate. ($ billions) Percentage YOY Asia Pacific 65 17.8 Canada 20 6.4 Europe 130 7.6 Latin America 24 13.3 South Asia/Middle East/Africa 7 16.2 (SAMEA) United States 210 -4.6 Worldwide 455 3.1 Note: Figures may not sum due to r
Slide 8: International Markets are MA's Growth Engine
International Markets are MA’s Growth Engine Net Revenue Contribution Purchase Volume (Percent) ($ Billions) 52.3 52.8 1043 49.7 50.3 47.7 879 856 47.2 817 724 691 2006 2007 2008 2006 2007 2008 United States Rest of World United States Rest of World 8
Slide 9: What's Next?
What’s Next? • A complex and dynamic economic environment • An interconnected world • A multidimensional view: – Geography and market – Consumer segments – Trend drivers 9
Slide 10: Emerging Opportunities During Challenging Times
Emerging Opportunities During Challenging Times • A customer-centric approach to our business • New and emerging market and segment opportunities • The global convergence and proliferation of technology 10
Slide 11: Helping Customer Navigate through a Weakened Economy and a New Reality
Helping Customer Navigate through a Weakened Economy and a New Reality Customer Needs • Risk Management • Cost Management • Capital Management • Managing existing business profitably • Intelligence and Insights Examples of MasterCard Offerings • Risk Management • Portfolio Analytics • Spending Pulse
Slide 12: Emerging Markets
Emerging Markets • The increasing importance and prominence of emerging markets: – Drive growth for the future – Create Acceptance opportunities – Surface consumer trends, segments, and needs 12
Slide 13: Technology Infrastructure Expanding Rapidly
Technology Infrastructure Expanding Rapidly • The convergence of technology and traditional financial service offerings is opening new channels – and opportunities – in all markets • This trend is a key driver in the shift from paper-based to electronic payments • Examples of how we are positioned f
Slide 14: In Summary
In Summary Despite a turbulent economic environment: • Our strategy and balance sheet are strong • Our business model is strong • Our teams continue to execute against customer needs 14
Slide 15: Appendix A: GAAP Reconciliation
Appendix A: GAAP Reconciliation ($ million except percentages) For the ye ar ended 12/31/08 For the year e nded 12/31/07 YO Y Growth Spe cial As Spe cial As Actual Ite ms Adjusted Actual Items Adjusted As Adjuste d Re venues, net $ 4,992 $ - $ 4,992 $4,068 - $4,068 22.7% O perating Expenses General