Slide 1: Fourth-Quarter and Full-Year 2009 Financial Results Conference Call
MasterCard Incorporated Fourth-Quarter and Full-Year 2009 Financial Results Conference Call February 4, 2010
Slide 2: Business Update
Business Update • Economic Overview • Business Trends – SpendingPulse – January Operational Performance 2
Slide 3: 4th Quarter Selected Financial Performance
4th Quarter Selected Financial Performance ($ in millions, except per share data) YOY 4Q 2008 4Q 2009 Non-GAAP Non-GAAP Actual excl. special items* Growth % Net revenue $ 1,298 $ 1,225 6.0 Total operating expenses 830 756 9.8 Operating income 468 468 - Operating margin 36.1% 38.2% (2.1) ppts Net inc
Slide 4: 4th Quarter 2009 MasterCard Branded Volume (GDV & Purchase Volume)
4th Quarter 2009 MasterCard Branded Volume (GDV & Purchase Volume) Gross Dollar Volume Purchase Volume YOY Growth % YOY Growth % $US U.S. Local $US U.S. Local billions Dollar Currency billions Dollar Currency APMEA 141 33.7 20.3 95 33.3 18.6 Canada 26 13.2 (1.6) 24 17.0 1.7 Europe 205 15.6 6.9 154 1
Slide 5: Revenue
4th Quarter Revenue ($ in millions) • Net Revenue increased 6.0%, and grew 2.2% on a constant 4Q 2008 4Q 2009 currency basis $1,375 $ 1,298 $ 1,225 $1,175 • Domestic Assessments increased 4.9% $975 $775 • Cross Border Volume Fees $ 640 $575 $ 610 $ 556 increased 21.4% $ 454 $ 462 $ 374 Incentives $3
Slide 6: 4th Quarter Operating Expenses
4th Quarter Operating Expenses ($ in millions) • Total operating expenses 4Q 2008 4Q 2009 increased 9.8%, or 6.6% on a constant currency basis* $ 830 $800 $ 756 • G&A increased 1.6% primarily $700 due to: $600 • Severance-related charges of $500 $ 498 $ 507 $38 million $400 • Foreign currency contri
Slide 7: Full-Year 2009 Highlights
Full-Year 2009 Highlights • Delivered full-year net income of $1.5 billion and diluted EPS of $11.19* • Achieved full-year net revenue of $5.1 billion – Growth of 2.1%, or 3.9% on a constant currency basis – Primarily due to pricing adjustments of approx. 6 ppts. – Partially offset by impact of cros
Slide 8: 2009 Cash Flow Statement and Balance Sheet Highlights
4th Quarter 2009 Cash Flow Statement and Balance Sheet Highlights • Generated $284 million in cash flow from operations for the quarter ended 12/31/2009 • Cash, cash equivalents and current available-for- sale securities of $2.9 billion at 12/31/2009 • Class B share 2010 programs 8
Slide 9: 2010 Outlook and Business Highlights
2010 Outlook and Business Highlights • Thoughts for 2010 – Net Revenue – Total Operating Expenses General & Administrative Advertising & Marketing – Tax rate – Operating margin and net income growth • Business Highlights for the fourth quarter 2009 9
Slide 10: MasterCard Worldwide: The Heart of Commerce
MasterCard Worldwide The Heart of Commerce”
Slide 11: Appendix A: GAAP Reconciliations
Appendix A: GAAP Reconciliations ($ in millions, except per share data) T hre e m o nt hs e nde d D e c e m be r 3 1, 2 0 0 9 T hre e m o nt hs e nde d D e c e m be r 3 1, 2 0 0 8 Special Non - Special Non - Actual Items GAAP Actual Items GAAP Litigation settlements $ - $ - $ - $ 6 $ 6 a $ - Total o
Slide 12: Appendix A (cont.): GAAP Reconciliations
Appendix A (cont.): GAAP Reconciliations ($ in millions, except per share data) F o r t he ye a r e nde d D e c e m be r 3 1, 2 0 0 9 F o r t he ye a r e nde d D e c e m be r 3 1, 2 0 0 8 Special Non - Special Non - Actual Items GAAP Actual Items GAAP Litigation settlements $ 7 $ 7 a $ - $ 2,483 $ 2
Slide 13: Appendix B: 4th Quarter Revenue Detail
Appendix B: 4th Quarter Revenue Detail Dollar Percent For the three months ended Increase Increase ($ in millions) December 31, (Decrease) (Decrease) 2009 vs. 2009 vs. 2009 2008 2008 2008 Domestic assessments $640 $610 $30 4.9% Cross border volume fees 454 374 81 21.4 Transaction processing fees 556
Slide 14: Appendix C: 4th Quarter G&A Detail
Appendix C: 4th Quarter G&A Detail Dollar Percent For the three months ended Increase Increase ($ in millions) December 31, (Decrease) (Decrease) 2009 vs. 2009 vs. 2009 2008 2008 2008 Personnel $350 $322 $28 8.7% Professional fees 52 50 2 4.0 Telecommunications 17 19 (2) (10.5) Data processing 23 22