Mastercard Incorporated · NYSE:MA
Mastercard — Q1 2020 Earnings Presentation
15 slides from Mastercard's earnings presentation, Apr 29, 2020
Slide 1: First-Quarter 2020 Financial Results Conference Call
Mastercard Incorporated First-Quarter 2020 Financial Results Conference Call
Slide 2: Business Update, Financial Overview, Economics Update
Business Update Financial Overview Economics Update Business Highlights ©2020 Mastercard April 29, 2020 2
Slide 3: 1st Quarter Selected Financial Performance
1st Quarter Selected Financial Performance ($ in millions, except per share data) YOY Growth 1Q 20 1Q 19 Currency Non-GAAP Non-GAAP As adjusted Neutral Net revenue $ 4,009 $ 3,889 3% 5% Adjusted operating expenses 1,792 1,676 7% 8% Adjusted operating income 2,218 2,213 —% 2% Adjusted operating margi
Slide 4: 1st Quarter Gross Dollar Volume (GDV)
1st Quarter Gross Dollar Volume (GDV) ($ in billions) Worldwide United States Rest of World 8% Growth 6% Growth 9% Growth $1,800 $1,565 $1,483 $1,600 $1,400 $1,086 $1,200 $810 $1,032 $740 $1,000 $800 $502 $559 $451 $478 $600 $400 $742 $755 $238 $251 $200 $530 $528 $212 $227 $0 1Q19 1Q20 1Q19 1Q20 1Q
Slide 5: 1st Quarter Switched Transactions and Cards
1st Quarter Switched Transactions and Cards Switched Transactions Cards 13% Growth* 5% Growth 4,000 30 Transactions (in billions) Cards (in millions) 3,000 22.1 2,504 2,632 19.2 419 20 455 2,000 10 2,212 1,000 2,049 0 0 1Q19 1Q20 1Q19 1Q20 ©2020 Mastercard Mastercard Cards Maestro Cards Notes: Figur
Slide 6: 1st Quarter Revenue
1st Quarter Revenue ($ in millions) 1Q19 1Q20 $5,000 $3,889 $4,009 $4,000 $3,000 $1,922 $2,200 $1,605 $1,683 $1,263 $1,217 $2,000 $1,062 $842 $1,000 $0 -$1,000 -$2,000 $(1,743) -$3,000 $(2,153) Domestic Cross-Border Transaction Other Rebates and Growth Assessments Volume Fees Processing Revenues Inc
Slide 7: 1st Quarter Adjusted Operating Expenses
1st Quarter Adjusted Operating Expenses ($ in millions) 1Q19 1Q20 $2,500 $2,000 $1,792 $1,676 $1,494 $1,500 $1,367 $1,000 $500 $192 $154 $117 $144 $0 Growth General & Administrative Advertising & Marketing Depreciation & Amortization Adjusted Operating Expenses Non-GAAP 9% (20)% 23% 7% Currency-neut
Slide 8: Capital Planning Update
Capital Planning Update PRIORITIES UNCHANGED RECENT HIGHLIGHTS • Strong operating cash flow despite COVID-19 Strong balance sheet • Substantial liquidity at quarter-end ◦ $10.7B cash and investments balance Preserve strong balance sheet, liquidity ◦ $6B credit facility1 and credit ratings • Signific
Slide 9: Business Update Through April 21st
Business Update Through April 21st year-over-year growth % March 2020 April 2020 Q1 2020 First two Week ending Week ending Week ending Week ending Week ending weeks March 21 March 28 April 7 April 14 April 21 Switched volume1 8% 8% (5)% (25)% (25)% (30)% (20)% United States 4% 5% (6)% (26)% (22)% (2
Slide 10: Cross-border Volume Trends
Cross-border Volume Trends 60% 40% 20% Card not present (Non-T&E) 0% Card not present -20% Total -40% Card present -60% -80% -100% ©2020 Mastercard JAN FEB MAR APR1 1. Through April 21st MTD Note: Cross-border volume growth is calculated in a manner as defined in our Supplemental Operational Perform
Slide 11: Looking Ahead
Looking Ahead Further thoughts ©2020 Mastercard April 29, 2020 11
Slide 12: Appendices
Appendices
Slide 13: Appendix A: Non-GAAP Reconciliation
Appendix A Non-GAAP Reconciliation ($ in millions, except per share data) Three Months Ended March 31, 2020 Operating Operating Operating Other Income Effective income Diluted earnings expenses income margin (Expense) tax rate Net income per share ($ in millions, except per share data) Reported - GA
Slide 14: Appendix A (continued): Non-GAAP Reconciliation
Appendix A (continued) Non-GAAP Reconciliation Three Months Ended March 31, 2020 as compared to the Three Months Ended March 31, 2019 Increase/(Decrease) Diluted Operating Operating Operating Effective income earnings per Net revenue expenses income margin tax rate Net income share Reported - GAAP 3
Slide 15: Appendix B: Non-GAAP Reconciliation
Appendix B Non-GAAP Reconciliation Second quarter 2020 operating expenses outlook Q2'20 vs. Q2'19 Increase/(Decrease) Forecasted Growth - GAAP 1 Low-single-digits Litigation provisions ** Non-GAAP Growth Low-single-digits Currency impact 2 ~1% Acquisitions 3 (6-8)% Non-GAAP Growth, currency neutral,