Slide 1: Second-Quarter 2018 Financial Results Conference Call
Mastercard Incorporated Second-Quarter 2018 Financial Results Conference Call July 26, 2018
Slide 2: Business Update, Financial & Operational Overview
Business Update Financial & Operational Overview Economic Update Business Highlights ©2018 Mastercard July 26, 2018 2
Slide 3: 2nd Quarter Selected Financial Performance
2nd Quarter Selected Financial Performance ($ in millions, except per share data) YOY Growth 2Q 18 Currency Non-GAAP1 2Q 17 Non-GAAP Neutral Net revenue $ 3,665 $ 3,053 20% 18% Total operating expenses 1,504 1,400 7% 6% Operating income 2,161 1,653 31% 28% Operating margin 59.0% 54.1% 4.9 ppt 4.7 pp
Slide 4: Gross Dollar Volume (GDV)
2nd Quarter Gross Dollar Volume (GDV) ($ in billions) Worldwide United States Rest of World 14% Growth 9% Growth 16% Growth $1,600 $1,475 $1,400 $1,279 $1,200 $1,032 $718 $1,000 $609 $875 $800 $486 $400 $600 $404 $442 $400 $671 $757 $208 $231 $546 $200 $475 $196 $211 $0 2Q17 2Q18 2Q17 2Q18 2Q17 2Q18
Slide 5: Switched Transactions and Cards
2nd Quarter Switched Transactions and Cards Switched Transactions Cards 13% Growth 5% Growth 17% Adjusted Growth* 7% Adjusted Growth* 18,161 3,000 17,500 16,014 2,441 2,500 Transactions (in millions) 2,329 Cards (in millions) 15,000 527 12,500 2,000 610 10,000 1,500 1,913 1,719 7,500 1,000 5,000 2,5
Slide 6: Revenue
2nd Quarter Revenue ($ in millions) 2Q17 2Q18 $5,000 $3,665 $4,000 $3,053 $3,000 $2,000 $1,260 $1,537 $1,198 $1,496 $1,830 $984 $694 $785 $1,000 $0 -$1,000 -$2,000 $(1,381)$(1,685) -$3,000 Domestic Cross-Border Transaction Other Rebates and Growth Assessments Volume Fees Processing Fees Revenues Inc
Slide 7: Operating Expenses
2nd Quarter Operating Expenses ($ in millions) 2Q17 2Q18 $1,800 $1,600 $1,504 $1,400 $1,400 $1,154 $1,200 $1,075 $1,000 $800 $600 $400 $214 $235 $111 $115 $200 $0 Growth General & Administrative Advertising & Marketing Depreciation & Amortization Total Operating Expenses* Non-GAAP 7% 10% 4% 7% Curre
Slide 8: Looking Ahead
Looking Ahead Business update through July 21st Thoughts for 2018 ©2018 Mastercard July 26, 2018 8
Slide 9: Appendices
Appendices
Slide 10: Appendix A: Non-GAAP Reconciliation
Appendix A Non-GAAP Reconciliation Three Months Ended June 30, 2018 Operating Operating Operating Effective income Diluted earnings expenses income margin tax rate Net income per share ($ in millions, except per share data) Reported - GAAP $ 1,729 $ 1,936 52.8 % 18.3 % $ 1,569 $ 1.50 Special Items 1
Slide 11: Appendix B: Non-GAAP Growth Drivers
Appendix B Non-GAAP Growth Drivers Three Months Ended June 30, 2018 as compared to the Three Months Ended June 30, 2017 Increase/(Decrease) Net revenue Operating expenses Operating income Non-GAAP - currency-neutral 1 18 % 6% 28 % Acquisition impact 2 —% (1)% —% Impact of new revenue recognition rul
Slide 12: Appendix C: Non-GAAP Reconciliation, 2018 Full-Year Outlook
Appendix C Non-GAAP Reconciliation 2018 full-year financial outlook 2018 vs. 2017 Increase/(Decrease) Net revenue Operating expenses Forecasted Growth - U.S. GAAP 1 High-teens High-teens Special items 2 ** (2)% Foreign currency 3 (0.5-1)% (0.5-1)% Non-GAAP Growth High-teens Mid-teens Note: Figures m