Slide 1: Mastercard First Quarter 2023 Financial Results Conference Call
Mastercard Incorporated First Quarter 2023 Financial Results Conference Call April 27, 2023
Slide 2: Business Update
Business Update Key Trends Business Highlights Financial Overview ©2023 Mastercard April 27, 2023 2
Slide 3: 1st Quarter Selected Financial Performance
1st Quarter Selected Financial Performance ($ in millions, except per share data) 1Q 23 1Q 22 YOY Growth Non-GAAP Non-GAAP As adjusted Currency-neutral Adjusted net revenue $ 5,748 $ 5,136 12% 15% Adjusted operating expenses 2,401 2,182 10% 12% Adjusted operating income 3,347 2,954 13% 17% Adjusted
Slide 4: Gross Dollar Volume (GDV)
1st Quarter Gross Dollar Volume (GDV) ($ in billions) Worldwide United States Rest of World 15% Growth 9% Growth 18% Growth $1,917 $2,108 $1,800 $1,600 $1,298 $1,435 $1,400 $1,017 $1,105 $1,200 $1,000 $774 $696 $800 $619 $673 $600 $900 $1,003 $320 $331 $400 $601 $660 $200 $299 $343 $0 1Q22 1Q23 1Q22
Slide 5: Switched Transactions and Cards
1st Quarter Switched Transactions and Cards 1 Switched Transactions Cards 12% Growth 9% Growth 4,000 40 3,155 2,901 32.5 3,000 387 Cards (in millions) Transactions (in billions) 29.0 382 30 2,000 20 2,769 2,519 1,000 10 0 0 1Q22 1Q23 1Q22 1Q23 Mastercard Cards Maestro Cards ©2023 Mastercard 1 Subseq
Slide 6: Net Revenue
1st Quarter Net Revenue ($ in millions) 1Q22 1Q23 $6,000 $5,748 $5,167 $5,000 1 1 $4,000 $3,650 $3,399 $3,000 $2,098 $2,000 $1,768 $1,000 $0 Value-added Payment Network Services and Solutions Total Net Revenue GAAP 7% 19% 11% Currency-neutral 10% 21% 14% Adjusted Currency-neutral 15% ©2023 Mastercar
Slide 7: Key Metrics related to the Payment Network
1st Quarter Key Metrics related to the Payment Network ($ in millions) 1Q22 1Q23 $6,000 $5,000 $4,000 $3,000 2,752 $2,457 $2,108 $2,254 1,849 $2,000 $1,390 $1,000 $168 $212 $0 Cross-Border Transaction Other Domestic Assessments Assessments Processing Assessments Network Assessments Increase/(Decreas
Slide 8: Adjusted Operating Expenses
1st Quarter Adjusted Operating Expenses ($ in millions) 1Q22 1Q23 $3,000 $2,500 $2,401 $2,182 $2,043 $2,000 $1,809 $1,500 $1,000 $500 $181 $167 $192 $191 $0 Growth General & Administrative Advertising & Marketing Depreciation & Amortization Adjusted Operating Expenses Non-GAAP 13% (8)% —% 10% Curren
Slide 9: Business Update Through April 21
st Business Update Through April 21 Year-over-year growth % Current period as a percentage of 20191,2 2022 2023 2023 Apr 21 Apr 21 Q4 Jan Feb Mar Q1 Jan Feb Mar Q1 MTD MTD 3 Switched volume 14% 19% 17% 17% 18% 17% 181% 181% 175% 179% 177% United States 9% 12% 10% 7% 10% 7% 161% 158% 150% 156% 154% W
Slide 10: Looking Ahead: Thoughts for 2023
Looking Ahead Thoughts for 2023 ©2023 Mastercard April 27, 2023 10
Slide 11: Appendices
Appendices
Slide 12: Non-GAAP Reconciliation
Appendix A Non-GAAP Reconciliation ($ in millions, except per share data) Three Months Ended March 31, 2023 Diluted Operating Operating Operating Other income Effective earnings per Net revenue expenses income margin (expense) income tax rate Net income share Reported - GAAP $ 5,748 $ 2,612 $ 3,136
Slide 13: Non-GAAP Reconciliation (continued)
Appendix A (continued) Non-GAAP Reconciliation Three Months Ended March 31, 2023 as compared to the Three Months Ended March 31, 2022 Increase/(Decrease) Operating Operating Operating Effective income Diluted earnings Net revenue expenses income margin tax rate Net income per share Reported - GAAP 1
Slide 14: Non-GAAP Reconciliation: 2023 financial outlook
Appendix B Non-GAAP Reconciliation 2023 financial outlook Prior 2023 vs. 2022 Updated 2023 vs. 2022 Increase/(Decrease) Increase/(Decrease) Net Revenue Operating Expenses Net Revenue Operating Expenses 1 Mid-single- High-single- Forecasted Growth - GAAP Low-teens Low-teens digits digits 2,3 Litigati
Slide 15: Non-GAAP Reconciliation: Second quarter 2023 financial outlook
Appendix C Non-GAAP Reconciliation Second quarter 2023 financial outlook Q2'23 vs. Q2'22 Increase/(Decrease) Net Revenue Operating Expenses 1 High-end of low- Forecasted Growth - GAAP Mid-single-digits double-digits 2 Litigation provisions ** 6% 3 Russia-related impacts -% 2% High-end of low- High-e
Slide 16: Key Metrics related to the Payment Network
Appendix D Key Metrics related to the Payment Network • Domestic assessments are charges based on activity related to cards that carry the Company’s brands where the merchant country and the country of issuance are the same. These assessments are primarily driven by the domestic dollar volume of act
Slide 17: Business Update Through April 21 Excluding Russia
Appendix E st 1 Business Update Through April 21 Excluding Russia 2,3 Year-over-year growth % Current period as a percentage of 2019 2022 2023 2023 April 21 Apr 21 Q4 Jan Feb Mar Q1 Jan Feb Mar Q1 MTD MTD 4 Switched volume 20% 25% 22% 18% 21% 17% 187% 186% 180% 184% 182% United States 9% 12% 10% 7%