Slide 1: MasterCard Incorporated 2nd Quarter 2006 Financial Results Conference Call
August 2, 2006 Exhibit 99.2 MasterCard Incorporated nd Quarter 2006 Financial Results Conference Call
Slide 2: 2nd Quarter Financial Results
2 • Completed initial public offering in late May • Made contributions to MasterCard Foundation • Delivered solid performance on a business-as-usual basis: – Earnings per share of $0.74, excluding special items – Loss per share of $2.30, including special items • Achieved strong revenue growth prima
Slide 3: 2nd Quarter Selected Financial Performance
3 17.0% – (32.4%) Operating Margin 9.7% – 9.7% Revenue Growth 101 411 e (310) Net Income (Loss) 0.74 3.04 e (2.30) Basic and Diluted EPS 307 – 307 Advertising and Marketing 22 (7) d 29 Investment Income 365 23 a 388 General Admin. and Litigation 144 418 (274) Operating Income (Loss) 5 395 b 400 Char
Slide 4: MasterCard Branded Volume Second Quarter 2006
4 Note: columns may not add due to rounding 17.9 17.9 232 United States 16.4 16.7 485 Worldwide 10.1 10.4 70 Asia Pacific 13.8 25.9 19 Canada 49.4 47.9 7 SAMEA 26.9 28.7 29 Latin America 14.2 13.0 127 Europe Local Currency U.S. Dollar Actual ($ Billions) % Year-Over-Year Growth MasterCard Branded Vo
Slide 5: 2nd Quarter Revenue - Assessments
5 $234 $283 $0 $50 $100 $150 $200 $250 $300 2Q05 2Q06 20% 30% 40% 50% 60% 70% 80% Net Assessment Fees Net Assessment Fees as a % of Gross Assessment Fees • Net assessments down $49 or 17.3% year-over-year • Gross assessments increased $35 or 8.6%. Key drivers include: – GDV increases – Restructured
Slide 6: 2nd Quarter Revenue - Operations Fees
6 • Net operations fees up $123 or 25.2% year-over-year • Gross operations fees increased $152 or 29.1%. Key drivers include increases in: – Processed transactions – Gross dollar volume – Restructured pricing, including $33 reclassification from assessments • Net operations fees as % of gross operat
Slide 7: 2nd Quarter Operating Expenses
7 • G&A up $46 or 14.4% year- over-year primarily due to increases in personnel to support strategic initiatives • A&M increased $75 or 32.6% primarily due to the 2006 World Cup • Litigation settlements represent increased reserves for ongoing litigation • Charitable contributions of $395 in common
Slide 8: Balance Sheet/Cash Flow Statement Highlights
8 • Cash, cash equivalents and available-for-sale securities of $2.1 billion • Equity at $2.1 billion • Accounts receivable increased $63 million primarily due to a pricing change in Europe as well as volume increases • Accrued expenses decreased $96 million primarily due to the payment of year-end
Slide 9: Third Quarter Items for Consideration
9 3Q05 Items: Adjustment to method of accounting for cash-based award plan (reported as General & Administrative expense) ($19) Currency Conversion Reserve (reported as Litigation Settlements expense) ($48) Customer breach of business agreement (reported as Other Income) $18 Pre-Tax Income (Expense)
Slide 10: MasterCard Worldwide: The Heart of Commerce
MasterCard Worldwide The Heart of Commerce”
Slide 11: Notes on payment program performance tables
11 Set forth on the following pages are tables that provide information regarding the performance results for the three and six month periods ended June 30, 2006 for the payment programs of MasterCard International Incorporated and MasterCard Europe sprl (collectively, “MasterCard”), the principal o
Slide 12: Notes on U.S. dollar and local currency information
12 Information denominated in U.S. dollars is calculated by applying an established U.S. dollar/local currency exchange rate for each local currency in which MasterCard volumes are reported. These exchange rates are calculated on a quarterly basis using the average exchange rate for each quarter. Ho
Slide 13: MasterCard payment program performance, six months ended June 30, 2006
13 All MasterCard Credit, GDV Growth Purchase Volume Growth Purchase Transactions Cash Volume Growth Cash Transactions Accounts Cards Charge and Debit Programs (Billions) (Local) (Billions) (Local) (Millions) (Billions) (Local) (Millions) (Millions) (Millions) South Asia / Middle East Africa $14 51.
Slide 14: MasterCard payment program performance, three months ended June 30, 2006
14 All MasterCard Credit, GDV Growth Purchase Volume Growth Purchase Transactions Cash Volume Growth Cash Transactions Accounts Cards Charge and Debit Programs (Billions) (Local) (Billions) (Local) (Millions) (Billions) (Local) (Millions) (Millions) (Millions) South Asia / Middle East Africa $5 34.3
Slide 15: MasterCard payment program performance, year ended December 31, 2005
15 All MasterCard Credit, GDV Growth Purchase Volume Growth Purchase Transactions Cash Volume Growth Cash Transactions Accounts Cards Charge and Debit Programs (Billions) (Local) (Billions) (Local) (Millions) (Billions) (Local) (Millions) (Millions) (Millions) South Asia / Middle East Africa $15 27.
Slide 16: Appendix B: New Ownership Structure
16 December 31, 2005 June 30, 2006 49,014 77,796 Accumulated other comprehensive income, net of tax $ 1,169,148 $ 2,117,006 Total Stockholders’ Equity 145,515 (1,263,102) 5 Retained earnings (accumulated deficit) 974,605 3 3,302,298 4 Additional paid-in capital - 3 - Class M common stock, $.0001 par
Slide 17: MasterCard Worldwide: The Heart of Commerce
MasterCard Worldwide The Heart of Commerce”