Visa Inc. · NYSE:V
Visa — Q2 2014 Earnings Presentation
15 slides from Visa's earnings presentation, Apr 24, 2014
Slide 1: Visa Inc. Fiscal Second Quarter 2014 Financial Results
Visa Inc. Fiscal Second Quarter 2014 Financial Results April 24, 2014
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 "believes," "estimates," "expects," "intends," "may," "projects," "co
Slide 3: Solid Fiscal Second Quarter Results
Solid Fiscal Second Quarter Results Solid operating revenues of $3.2 billion, up 7% over prior year Quarterly net income of $1.6 billion and diluted earnings per share of $2.52, up 26% and 31%, respectively, over prior year Repurchased 5.1 million shares of class A common stock in the open market at
Slide 4: Payments Volume
Payments Volume US$ in billions, nominal, except percentages Quarter ended December 2012 2013 INTL = International 1,164 1,075 U.S. U.S. 545 591 737 688 U.S. U.S. 262 288 387 427 INTL INTL INTL INTL U.S. U.S. 530 573 425 450 282 303 INTL 105 INTL 124 Total Visa Inc. Credit Debit YOY Change (nominal)
Slide 5: Payments Volume
Payments Volume US$ in billions, nominal, except percentages Quarter ended March 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 reco
Slide 6: Transactions
Transactions in millions, except percentages Quarter ended March 2013 2014 22,643 20,743 Credit Credit 37% 37% 15,354 13,850 Debit Debit 63% 63% Total Transactions Processed Transactions YOY 9% 11% Change Note: Processed transactions represent transactions involving Visa, Visa Electron, Interlink an
Slide 7: Total Cards
Total Cards in millions, except percentages Quarter ended December 2012 2013 2,229 2,104 1,410 1,309 795 819 Visa Inc. Credit Debit YOY Change 6% 3% 8% Note: The data presented is based on results reported quarterly by Visa clients on their operating certificates. Estimates may be utilized if data i
Slide 8: Revenue – Q2 2014
Revenue – Q2 2014 US$ in millions, except percentages Fiscal 2013 Fiscal 2014 3,750 3,525 3,163 2,958 (567) (587) Gross Revenues Client Net Operating Incentives Revenues YOY Change 6% 4% 7% Fiscal 2014 % of Gross Revenues 16% 84% Note: Figures may not recalculate exactly due to rounding. Percentages
Slide 9: Revenue Detail – Q2 2014
Revenue Detail – Q2 2014 US$ in millions, except percentages Fiscal 2013 Fiscal 2014 1,462 1,369 1,234 1,150 831 871 175 183 Service Revenues Data Processing International Other Revenues Revenues Transaction Revenues YOY Change 7% 7% 5% 5% Note: Figures may not recalculate exactly due to rounding. P
Slide 10: Operating Margin – Q2 2014
Operating Margin – Q2 2014 US$ in millions, except percentages Fiscal 2013 Fiscal 2014 3,163 2,958 65% 2,048 63% 1,860 1,098 1,115 Net Operating Total Operating Operating Operating Revenues Expenses Income Margin YOY Change 7% 2% 10% 2 ppts Note: Operating margin is calculated as operating income di
Slide 11: Operating Expense – Q2 2014
Operating Expense – Q2 2014 US$ in millions, except percentages Fiscal 2013 Fiscal 2014 486 446 245 195 119 120 98 107 108 120 91 77 1 0 Personnel Marketing Network & Professional Depreciation & General & Litigation Processing Fees Amortization Administrative Provision YOY Change (8%) 26% 1% (15%) 1
Slide 12: Other Financial Results
Other Financial Results • Cash, cash equivalents and available-for-sale investment securities of $6.5 billion at the end of the fiscal second quarter • Free cash flow of $824 million for the fiscal second quarter • Capital expenditures of $97 million during the fiscal second quarter 12 Fiscal Second
Slide 13: Financial Metrics for Fiscal Year 2014
Financial Metrics for Fiscal Year 2014 • Low double-digits in the 10-11% range on a constant Annual net revenue growth dollar basis • Negative 2 ppts foreign currency impact Client incentives as % of • 16.5% to 17.5% range gross revenues Annual operating margin • Low to mid 60s Tax Rate • Approachin
Slide 14: Appendix
Appendix
Slide 15: Calculation of Free Cash Flow
Calculation of Free Cash Flow US$ in millions Additions (+) / Reductions (-) to Net Three Months Ended Six Months Ended income March 31, 2014 March 31, 2014 Net income (as reported) 1,598 3,005 Capital Assets + Depreciation and amortization 107 214 - Capital expenditures (97) (217) 10 (3) (1) Litiga