Visa Inc. · NYSE:V
Visa — Q3 2013 Earnings Presentation
20 slides from Visa's earnings presentation, Jul 24, 2013
Slide 1: Visa Inc. Fiscal Third Quarter Financial Results
Visa Inc. Fiscal Third Quarter Financial Results July 24, 2013
Slide 2: Forward-Looking Statements
Forward-Looking Statements 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 "believe," "continue," “expect," and similar references to the future. Examples of such fo
Slide 3: Solid Fiscal Third Quarter Results
Solid Fiscal Third Quarter Results • Strong operating revenues of $3.0 billion, up 17% over prior year • Quarterly net income of $1.2 billion and diluted earnings per share of $1.88, up 16% and 20%, respectively, over prior year adjusted results • Repurchased 6 million shares of class A common stock
Slide 4: Payments Volume
Payments Volume US$ in billions, nominal, except percentages Quarter ended March 2012 ROW = Rest of World 2013 1,025 958 U.S. U.S. 508 530 637 588 U.S. U.S. 223 244 370 388 ROW ROW U.S. U.S. 450 495 ROW ROW 284 286 365 393 ROW 85 ROW 102 Total Visa Inc. Credit Debit YOY Change (nominal) 7% 8% 5% YOY
Slide 5: Payments Volume
Payments Volume US$ in billions, nominal, except percentages Quarter ended June 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 paymen
Slide 6: Payments Volume
Payments Volume US$ in billions, nominal, except percentages Quarter ended March 2012 2013 508 530 295 269 90 98 51 51 40 50 United States Asia Pacific Latin America and Canada Central and Eastern Caribbean Europe, Middle East and Africa YOY Change (nominal) 4% 10% 9% 1% 25% YOY Change (constant) 4%
Slide 7: Payments Volume
Payments Volume US$ in billions, nominal, except percentages Quarter ended June 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 paymen
Slide 8: Transactions
Transactions in millions, except percentages Quarter ended June 2012 2013 22,299 19,918 Credit Credit 14,972 38% 37% 13,113 Debit Debit 62% 63% Total Processed Transactions Transactions YOY 12% 14% Change Note: Processed transactions represent transactions involving Visa, Visa Electron, Interlink an
Slide 9: Total Cards
Total Cards in millions, except percentages Quarter ended March 2012 2013 2,134 2,003 1,333 1,225 778 801 Credit Debit Visa Inc. YOY Change 3% 9% 7% Note: From time to time, previously submitted card information may be updated. Prior period updates are not material. Figures may not recalculate exact
Slide 10: Revenue – Q3 2013
Revenue – Q3 2013 US$ in millions, except percentages Fiscal 2012 Fiscal 2013 3,522 3,179 3,001 2,565 (614) (521) Gross Revenues Incentives Net Operating Revenues YOY Change 11% (15%) 17% FY13 % of Gross Revenues 15% 85% Note: Figures may not recalculate exactly due to rounding. Percentage changes a
Slide 11: Revenue Detail – Q3 2013
Revenue Detail – Q3 2013 US$ in millions, except percentages Fiscal 2012 Fiscal 2013 1,298 1,216 1,191 1,040 854 748 175 179 Service Data Processing International Other Revenues Revenues Revenues Transaction Revenues YOY Change 7% 15% 14% 1% Note: Figures may not recalculate exactly due to rounding.
Slide 12: Adjusted Operating Margin – Q3 2013
Adjusted Operating Margin – Q3 2013 US$ in millions, except percentages Fiscal 2012 Fiscal 2013 3,001 2,565 61% 1,828 58% 1,491 1,173 1,074 Net Operating Total Operating Operating Operating Revenues Expenses Income Margin YOY Change 17% 9% 22% 3 ppt Note: Operating margin is calculated as operating
Slide 13: Adjusted Operating Expenses – Q3 2013
Adjusted Operating Expenses – Q3 2013 US$ in millions, except percentages Fiscal 2012 Fiscal 2013 493 435 242 252 102 117 99 103 101 112 108 84 0 (1) Personnel Marketing Network & Professional Depreciation & General & Litigation Processing Fees Amortization Administrative provision YOY Change 13% 4%
Slide 14: Other Financial Results
Other Financial Results • Cash, cash equivalents and available-for-sale investment securities of $6.5 billion at the end of the fiscal third quarter • Free cash flow of $2.0 billion for the fiscal third quarter • Capital expenditures of $122 million during the fiscal third quarter Fiscal Third Quart
Slide 15: Financial Metrics for Fiscal Year 2013
Financial Metrics for Fiscal Year 2013 Annual net revenue growth Around 13% 16% to 17% Client incentives as % of gross revenues range Under $1 Marketing expenses billion Annual operating margin About 60% Fiscal Third Quarter 2013 Financial Results 15
Slide 16: Financial Metrics for Fiscal Year 2013
Financial Metrics for Fiscal Year 2013 30% to 32% Tax rate range Adjusted annual diluted class A common stock Low twenties earnings per share growth $425 million to Capital expenditures $475 million range About $6 Annual free cash flow billion Note: See appendix for reconciliation of adjusted non-GA
Slide 17: Financial Metrics for Fiscal Year 2014
Financial Metrics for Fiscal Year 2014 Low double Annual net revenue growth digits Adjusted annual diluted class A common stock Mid to high earnings per share growth teens Annual free cash flow About $5 billion Fiscal Third Quarter 2013 Financial Results 17
Slide 18: Appendix
VISA Appendix
Slide 19: Reconciliation of Non-GAAP Financial Results
Reconciliation of Non-GAAP Financial Results US$ in millions, except percentages and per share data Our reported financial results for the three months ended June 30, 2012 included a litigation provision of $4.1 billion and related tax benefits associated with the interchange MDL, which is covered b
Slide 20: Calculation of Free Cash Flow
Calculation of Free Cash Flow US$ in millions Additions (+) / Reductions (-) to Net income attributable to Three Months Ended Nine Months Ended Visa Inc. June 30, 2013 June 30, 2013 Net income attributable to Visa Inc. (as reported) 1,225 3,788 Capital Assets + Depreciation and amortization 101 291