Mastercard Incorporated · NYSE:MA
Mastercard — Q2 2013 Earnings Presentation
11 slides from Mastercard's earnings presentation, Jul 31, 2013
Slide 1: Second-Quarter 2013 Financial Results Conference Call
MasterCard Incorporated Second-Quarter 2013 Financial Results Conference Call July 31, 2013
Slide 2: Business Update
Business Update • Recap of 2nd Quarter Results • Economic Update • Business Highlights 2
Slide 3: 2nd Quarter Selected Financial Performance
2nd Quarter Selected Financial Performance ($ in millions, except per share data) YOY Growth As FX 2Q 13 2Q 12* Reported Adjusted Net revenue $ 2,096 $ 1,820 15% 15% Total operating expenses 868 826 5% 5% Operating income 1,228 994 24% 23% Operating margin 58.6% 54.6% 4.0 ppts 4.0 ppts Net income $
Slide 4: 2nd Quarter Gross Dollar Volume (GDV)
2nd Quarter Gross Dollar Volume (GDV) ($ in billions) $1,200 Worldwide 13% Growth $1,007 $1,000 $893 Rest of World 17% Growth $440 $800 $697 $374 $601 $600 United States $276 6% Growth $225 $400 $292 $310 $519 $568 $149 $163 $421 $200 $376 $142 $147 $0 2Q12 2Q13 2Q12 2Q13 2Q12 2Q13 Credit Debit Note
Slide 5: Processed Transactions and Cards
2nd Quarter Processed Transactions and Cards Processed Transactions Cards 10,000 11% Growth 8% Growth 2,000 1,940 1,793 8,000 729 Transactions (in millions) 1,500 715 Cards (in millions) 6,000 9,518 1,000 4,000 8,537 1,211 500 1,079 2,000 0 0 2Q 12 2Q 13 2Q 12 2Q 13 MasterCard Cards Maestro Cards No
Slide 6: 2nd Quarter Revenue
2nd Quarter Revenue ($ in millions) 2Q 12 2Q 13 $2,096 $2,000 $1,820 $872 $940 $1,000 $753 $818 $677 $566 $269 $315 $0 ($640) ($654) -$1,000 Domestic Cross-Border Transaction Other Rebates and Total Net Assessments Volume Fees Processing Fees Revenues Incentives Revenue As reported +8% +20% +9% +17%
Slide 7: 2nd Quarter Operating Expenses
2nd Quarter Operating Expenses ($ in millions) 2Q 12 2Q 13 $1,000 $868 $826 $800 $591 $621 $600 $400 $179 $186 $200 $56 $61 $0 General Advertising Depreciation Total & & & Operating Administrative Marketing Amortization Expenses As reported +5% +3% +11% +5%* FX adjusted +5% +3% +11% +5%* Note: Figur
Slide 8: Thoughts for the Future
Thoughts for the Future • Business update through July 28 • Long-term Performance Objectives • Thoughts for 2013 o Revenue o Operating Expenses o Tax Rate o FX sensitivity 8
Slide 9: MasterCard Worldwide: The Heart of Commerce
MasterCard Worldwide The Heart of Commerce”
Slide 10: GAAP Reconciliation
Appendix GAAP Reconciliation ($ in millions, except per share data) Three Months Ended Three Months Ended June 30, 2013 June 30, 2012 Actual Actual Special Item Non-GAAP Provision for litigation settlement $ - $ 20 $ (20) $ - Total operating expenses 868 846 (20) 826 Operating income 1,228 974 20 99
Slide 11: GAAP Reconciliation (cont.)
Appendix (cont.) GAAP Reconciliation ($ in millions, except per share data) Six Months Ended Six Months Ended June 30, 2013 June 30, 2012 Actual Actual Special Item Non-GAAP Provision for litigation settlement $ - $ 20 $ (20) $ - Total operating expenses 1,667 1,604 (20) 1,584 Operating income 2,335