Visa Inc. · NYSE:V
Visa — Q1 2011 Earnings Presentation
18 slides from Visa's earnings presentation, Feb 2, 2011
Slide 1: Visa Inc. Fiscal First Quarter Financial Results
Visa Inc. Fiscal First Quarter Financial Results February 2, 2011
Slide 2: Forward-Looking Information
Forward-Looking Information This presentation contains forward−looking statements within the meaning of the U.S. Private Securities Litigation Reform Act of 1995. These statements can be identified by the terms “expect,” “will,” “continue” and similar references to the future. Examples of such forwa
Slide 3: Solid Fiscal First Quarter Results
Solid Fiscal First Quarter Results • Strong operating revenues of $2.2 billion, up 14% over prior year • Quarterly net income of $884 million, up 16% and diluted earnings of $1.23 per share, up 20% over prior year • Repurchased 15.3 million shares at an average price of $72.08 and total cost of $1.1
Slide 4: Payments Volume
Payments Volume US$ in billions, nominal, except percentages Quarter ended September 2009 ROW = Rest of World 829 2010 720 U.S. U.S. 502 417 452 473 U.S. U.S. 327 195 207 268 U.S. U.S. ROW ROW ROW ROW 223 266 303 356 258 295 ROW 45 ROW 61 Total Visa Inc. Credit Debit YOY Change (nominal) 15% 11% 22%
Slide 5: Payments Volume
Payments Volume US$ in billions, nominal, except percentages Quarter ended December Note: Current quarter payments volume and other select metrics are provided in the operational performance data supplement to provide more recent operating data. Service revenues continue to be recognized based on pa
Slide 6: Payments Volume
Payments Volume US$ in billions, nominal, except percentages Quarter ended September 2009 473 2010 417 212 183 68 55 49 44 27 21 United States Asia Pacific Latin America and Canada Central and Eastern Caribbean Europe, Middle East and Africa YOY Change (nominal) 13% 16% 24% 10% 26% YOY Change (const
Slide 7: Payments Volume
Payments Volume US$ in billions, nominal, except percentages Quarter ended December Note: Current quarter payments volume and other select metrics are provided in the operational performance data supplement to provide more recent operating data. Service revenues continue to be recognized based on pa
Slide 8: Transactions
Transactions in millions, except percentages Quarter ended September Quarter ended December 2009 2010 18,911 18,149 16,619 15,855 12,119 Credit Credit 12,580 Credit Credit 37% 35% 10,463 37% 36% 10,924 Debit Debit Debit Debit 63% 65% 63% 64% Total Transactions Processed Total Transactions Processed
Slide 9: Total Cards
Total Cards in millions, except percentages Quarter ended September 2009 1,766 1,850 2010 1,081 979 787 770 Credit Debit Visa Inc. YOY (2%) 10% 5% Change Note: From time to time, previously submitted cards information may be updated. Prior year cards information presented has not been updated, as ch
Slide 10: Revenue – Q1 2011
Revenue – Q1 2011 US$ in millions, except percentages Fiscal 2010 Fiscal 2011 2,643 2,334 2,238 1,960 (374) (405) Gross Net Operating Revenues Incentives Revenues YOY 13% 8% 14% Change Note: Growth rates calculated based on whole numbers, not rounded numbers. Fiscal First Quarter 2011 Financial Resu
Slide 11: Revenue Detail – Q1 2011
Revenue Detail – Q1 2011 US$ in millions, except percentages Fiscal 2010 Fiscal 2011 1,008 827 844 765 630 552 190 161 Service Data International Other Revenues Processing Transaction Revenues Revenues Revenues YOY 22% 10% 14% (15%) Change Note: Growth rates calculated based on whole numbers, not ro
Slide 12: Operating Margin – Q1 2011
Operating Margin – Q1 2011 US$ in millions, except percentages Fiscal 2010 Fiscal 2011 2,238 62% 61% 1,960 1,366 1,217 872 743 Operating Margin Net Operating Total Operating Operating Revenues Expenses Income YOY (1 ppt) 14% 17% 12% Change Note: Growth rates calculated based on whole numbers, not ro
Slide 13: Operating Expenses – Q1 2011
Operating Expenses – Q1 2011 US$ in millions, except percentages Fiscal 2010 Fiscal 2011 357 274 216 197 105 110 80 67 78 51 61 62 0 (43) Personnel Network Marketing Professional Depreciation General Litigation and Fees and and Provision Processing Amortization Administrative YOY Change 30% (24%) (9
Slide 14: Other Financial Results
Other Financial Results • Cash, cash equivalents, restricted cash and available-for-sale investment securities of $6.5 billion at the end of the fiscal first quarter which includes $2.7 billion of restricted cash for litigation escrow • Total free cash flow of $1.2 billion at the end of the fiscal f
Slide 15: Financial Metrics for Fiscal Year 2011
Financial Metrics for Fiscal Year 2011 11% to 15% Annual net revenue growth range Client incentives as % of gross revenues 16% to 16.5% range Less than Marketing expenses $900 million Annual operating margin About 60% Fiscal First Quarter 2011 Financial Results 15
Slide 16: Financial Metrics for Fiscal Year 2011
Financial Metrics for Fiscal Year 2011 36.5% to 37% GAAP tax rate range Annual diluted class A common stock earnings 20% + per share growth Between $250- Capital expenditures $275 million Annual free cash flow $3 billion + Fiscal First Quarter 2011 Financial Results 16
Slide 17: Appendix: Reconciliation of Non-GAAP Measures
Appendix Reconciliation of Non-GAAP Measures
Slide 18: Calculation of Free Cash Flow
Calculation of Free Cash Flow US$ in millions Additions (+) / Reductions (-) to Net income attributable Three Months Ended to Visa Inc. December 31, 2010 Net income attributable to Visa Inc. (as reported) 884 Capital Assets + Depreciation and amortization 67 - Capital expenditures (75) (8) Litigatio