Visa Inc. · NYSE:V
Visa — Q2 2016 Earnings Presentation
16 slides from Visa's earnings presentation, Apr 21, 2016
Slide 1: Visa Inc. Fiscal Second Quarter 2016 Financial Results
Visa Inc. Fiscal Second Quarter 2016 Financial Results April 21, 2016
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. Forward-looking statements generally are identified by words such as "estimates," “believe,“ “outlook,” "will," "continue" and other simil
Slide 3: Solid Fiscal Second Quarter Results
Solid Fiscal Second Quarter Results Net operating revenues of $3.6 billion, up 6% over prior year GAAP quarterly net income of $1.7 billion and $0.71 diluted earnings per share Adjusted quarterly net income of $1.6 billion and $0.68 diluted earnings per share Repurchased 24.2 million shares of class
Slide 4: Payments Volume
Payments Volume US$ in billions, nominal, except percentages Quarter ended December 2014 1,305 2015 1,244 INTL = International U.S. U.S. 714 795 828 651 U.S. U.S. 327 358 450 477 INTL INTL U.S. U.S. INTL INTL 593 591 324 356 467 470 INTL 126 INTL 121 Total Visa Inc. Credit Debit YOY Change 6% (nomin
Slide 5: Payments Volume
Payments Volume US$ in billions, nominal, except percentages Quarter ended March Note: Current quarter payments volume and other select metrics are provided in the operational performance data supplement in the press release to provide more recent operating data. Service revenues continue to be reco
Slide 6: Transactions
Transactions in millions, except percentages Quarter ended March 2015 28,154 2016 25,090 37% 37% Credit Credit 18,475 Credit Credit 16,980 38% 38% 63% 63% Debit Debit Debit 62% Total Transactions Processed Transactions YOY Change 12% 9% Note: Total transactions represent payments and cash transactio
Slide 7: Total Cards
Total Cards in millions, except percentages Quarter ended December 2014 2015 2,490 2,398 1,543 1,594 855 896 Visa Inc. Credit Debit YOY Change 4% 5% 3% Note: The data presented is based on results reported quarterly by Visa clients on their operating certificates. Estimates may be utilized if data i
Slide 8: Revenue – Q2 2016
Revenue – Q2 2016 US$ in millions, except percentages Fiscal 2015 Fiscal 2016 4,415 4,085 3,409 3,626 (676) (789) Gross Revenues Client Net Operating Incentives Revenues YOY Change 8% 17% 6% Fiscal 2016 % of Gross Revenues 18% 82% Note: Figures may not recalculate exactly due to rounding. Percentage
Slide 9: Revenue Detail – Q2 2016
Revenue Detail – Q2 2016 US$ in millions, except percentages Fiscal 2015 Fiscal 2016 1,699 1,577 1,473 1,340 1,045 964 204 198 Service Revenues Data Processing International Other Revenues Revenues Transaction Revenues YOY Change 8% 10% 8% (3%) Note: Figures may not recalculate exactly due to roundi
Slide 10: Operating Margin – Q2 2016
Operating Margin – Q2 2016 US$ in millions, except percentages Fiscal 2015 Fiscal 2016 3,626 3,409 67% 67% 2,434 2,281 1,128 1,192 Net Operating Total Operating Operating Operating Revenues Expenses Income Margin YOY Change 6% 6% 7% — ppt Note: Operating margin is calculated as operating income divi
Slide 11: Operating Expenses – Q2 2016
Operating Expenses – Q2 2016 US$ in millions, except percentages Fiscal 2015 Fiscal 2016 528 483 190 186 164 126 125 121 141 109 77 66 3 1 Personnel Marketing Network & Professional Depreciation & General & Litigation Processing Fees Amortization Administrative Provision YOY Change 9% (2%) 16% (15%)
Slide 12: Other Financial Results
Other Financial Results • Cash, cash equivalents and available-for-sale investment securities of $23.4 billion at the end of the fiscal second quarter • Free cash flow of $830 million for the fiscal second quarter • Capital expenditures of $124 million during the fiscal second quarter 12 Fiscal Seco
Slide 13: Financial Outlook for Fiscal Year 2016
Financial Outlook for Fiscal Year 2016 • 7% to 8% range on a constant dollar basis Annual net revenue growth • About 3 ppts of negative foreign currency impact Client incentives as % of gross revenues • High-end of the 17.5% - 18.5% range Annual operating margin • Mid 60s Adjusted effective tax rate
Slide 14: Appendix
Appendix
Slide 15: Reconciliation of Non-GAAP Financial Results
Reconciliation of Non-GAAP Financial Results US$ in millions, except percentages and per share data The Company's financial results during the first half of fiscal 2016 reflect the impact of significant non-operating items that the Company does not believe are indicative of its operating performance
Slide 16: Calculation of Free Cash Flow
Calculation of Free Cash Flow US$ in millions Management believes that presentation of free cash flow is useful to measure the Company’s generation of net income available to first re-invest in the business and then return excess cash to shareholders through stock buybacks and cash dividends. During