Visa Inc. · NYSE:V
Visa — Q4 2016 Earnings Presentation
15 slides from Visa's earnings presentation, Oct 24, 2016
Slide 1: Fiscal Fourth Quarter 2016 Financial Results
Visa Inc. Fiscal Fourth Quarter 2016 Financial Results October 24, 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 that relate to, among other things, our future operations, prospects, developments, strategies, business growth and financial outlook for f
Slide 3: Solid Fiscal Fourth Quarter Results
Solid Fiscal Fourth Quarter Results Net operating revenues of $4.3 billion, up 19% over prior year GAAP quarterly net income of $1.9 billion and $0.79 diluted earnings per share, including special items Adjusted quarterly net income of $1.9 billion or $0.78 diluted earnings per share, excluding spec
Slide 4: Payments Volume
Payments Volume US$ in billions, nominal, except percentages Quarter ended June 2015 2016 1,349 INTL = International 1,254 U.S. U.S. 852 749 792 683 U.S. U.S. 376 461 497 339 INTL INTL U.S. U.S. INTL INTL 570 600 344 374 453 476 INTL 117 INTL 123 Total Visa Inc. Credit Debit YOY Change 8% (nominal)
Slide 5: Payments Volume
Payments Volume US$ in billions, nominal, except percentages Quarter ended September Note: Includes Visa Europe payments volume. 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
Slide 6: Transactions
Transactions in millions, except percentages Quarter ended September 2015 2016 41,776 36% Credit 27,930 25,921 Credit Credit 38% 38% 38% Credit 18,365 64% Debit 62% Debit Debit 62% Total Transactions Processed Transactions YOY Change 50% 41% Note: Includes Visa Europe transactions. Total transaction
Slide 7: Total Cards
Total Cards in millions, except percentages Quarter ended June 2015 2016 2,549 2,430 1,561 1,622 869 927 Visa Inc. Credit Debit YOY Change 5% 7% 4% Note: Does not include Visa Europe cards. The data presented is based on results reported quarterly by Visa clients on their operating certificates. Est
Slide 8: Revenue – Q4 2016
Revenue – Q4 2016 US$ in millions, except percentages Fiscal 2015 Fiscal 2016 5,254 4,373 4,261 3,571 (802) (993) Gross Revenues Client Net Operating Incentives Revenues YOY Change 20% 24% 19% Fiscal 2016 % of Gross Revenues 19% 81% Note: Includes Visa Europe operating revenues for the three months
Slide 9: Revenue Detail – Q4 2016
Revenue Detail – Q4 2016 US$ in millions, except percentages Fiscal 2015 Fiscal 2016 1,768 1,779 1,637 1,489 1,429 1,091 216 218 Service Revenues Data Processing International Other Revenues Revenues Transaction Revenues YOY Change 8% 25% 36% 1% Note: Includes Visa Europe operating revenues for the
Slide 10: Adjusted Operating Margin – Q4 2016
Adjusted Operating Margin – Q4 2016 US$ in millions, except percentages Fiscal 2015 Fiscal 2016 4,261 3,571 2,735 64% 64% 2,283 1,526 1,288 Net Operating Adjusted Operating Adjusted Operating Adjusted Operating Revenues Expenses Income Margin YOY Change 19% 18% 20% 0 ppt Note: Includes Visa Europe o
Slide 11: Adjusted Operating Expenses – Q4 2016
Adjusted Operating Expenses – Q4 2016 US$ in millions, except percentages Fiscal 2015 Fiscal 2016 580 521 300 253 230 161 143 134 141 107 113 119 11 1 Personnel Marketing Network & Professional Depreciation & General & Litigation Processing Fees Amortization Administrative Provision YOY Change 11% 1
Slide 12: Other Financial Results and Highlights
Other Financial Results and Highlights • Cash, cash equivalents and available-for-sale investment securities of $12.8 billion at the end of the fiscal fourth quarter • Adjusted free cash flow of $2.3 billion for the fiscal fourth quarter • Capital expenditures of $141 million during the fiscal fourt
Slide 13: Financial Outlook for Fiscal Year 2017
Financial Outlook for Fiscal Year 2017 Annual net revenue 16% to 18% range on a nominal dollar basis, including 1.0 to growth 1.5 ppts of negative foreign currency impact Client incentives as % of gross revenues 20.5% to 21.5% range Annual operating margin Mid 60s Effective tax rate Low 30s Annual d
Slide 14: Appendix
Appendix
Slide 15: Calculation of Adjusted Free Cash Flow
Calculation of Adjusted Free Cash Flow US$ in millions Management believes that presentation of adjusted free cash flow is useful to measure the Company’s generation of cash available to first re-invest in the business and then return excess cash to shareholders through stock buybacks and cash divid