Slide 1: Fiscal Third Quarter Financial Results
Visa Inc. Fiscal Third Quarter Financial Results July 27, 2011 Exhibit 99.2
Slide 2: Forward-Looking Information
Fiscal Third Quarter 2011 Financial Results 2 Forward-Looking Information 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 “expect,” “ will,” “continue” and similar r
Slide 3: Solid Fiscal Third Quarter Results
Fiscal Third Quarter 2011 Financial Results 3 Solid Fiscal Third Quarter Results • Strong operating revenues of $2.3 billion, up 14% over prior year • Adjusted quarterly net income of $883 million, up 23%, and adjusted diluted earnings per share of $1.26, up 29% over prior year • Continued positive
Slide 4: Payments Volume - Quarter ended March
Fiscal Third Quarter 2011 Financial Results 4 ROW 51 ROW 318 ROW 318 U.S. 427 U.S. 477 ROW 385 U.S. 182 266 ROW U.S. 245 U.S. 278 ROW 68 U.S. 199 Quarter ended March US$ in billions, nominal, except percentages Payments Volume ROW = YOY Change (nominal) 15% 17% 16% YOY Change (constant) 13% 11% 16%
Slide 5: Payments Volume - Quarter ended June
Fiscal Third Quarter 2011 Financial Results 5 ROW 55 ROW 333 ROW 348 U.S. 469 U.S. 518 ROW 422 U.S. 204 277 ROW U.S. 224 U.S. 266 U.S. 295 ROW 75 Quarter ended June US$ in billions, nominal, except percentages Payments Volume Note: Current quarter payments volume and other select metrics are provide
Slide 6: Payments Volume by Region - Quarter ended March
Fiscal Third Quarter 2011 Financial Results 6 Quarter ended March US$ in billions, nominal, except percentages Payments Volume Note: Growth rates calculated based on whole numbers, not rounded numbers. From time to time, previously submitted volume information may be updated. Prior year volume infor
Slide 7: Payments Volume by Region - Quarter ended June
Fiscal Third Quarter 2011 Financial Results 7 Quarter ended June US$ in billions, nominal, except percentages Payments Volume YOY Change (nominal) 10% 24% 38% 14% 43% YOY Change (constant) 10% 14% 29% 8% 37% United States Asia Pacific Latin America and Caribbean Canada Central and Eastern Europe, Mi
Slide 8: Transactions
Fiscal Third Quarter 2011 Financial Results 8 Debit 65% Credit 35% Credit 36% Debit 64% Credit 35% Debit 65% Credit 35% Debit 65% 11,721 16,118 10,648 17,582 13,038 18,046 12,040 19,400 Total Transactions Processed Transactions Total Transactions Processed Transactions Quarter ended March in million
Slide 9: Total Cards - Quarter ended March
Fiscal Third Quarter 2011 Financial Results 9 Quarter ended March in millions, except percentages Total Cards YOY Change (2)% 6% 2% Note: From time to time, previously submitted card information may be updated. Prior year card information presented has not been updated, as changes made are not mater
Slide 10: Revenue - Q3 2011
Fiscal Third Quarter 2011 Financial Results 10 Revenue – Q3 2011 US$ in millions, except percentages Gross Revenues Incentives Net Operating Revenues YOY Change 14% 14% 14% Note: Growth rates calculated based on whole numbers, not rounded numbers. Fiscal 2010 Fiscal 2011 2,770 2,422 2,029 2,322 (393
Slide 11: Revenue Detail - Q3 2011
Fiscal Third Quarter 2011 Financial Results 11 Revenue Detail – Q3 2011 US$ in millions, except percentages Service Revenues Data Processing Revenues International Transaction Revenues Other Revenues YOY Change 21% 12% 15% (10)% Note: Growth rates calculated based on whole numbers, not rounded numbe
Slide 12: Operating Margin - Q3 2011
Fiscal Third Quarter 2011 Financial Results 12 Operating Margin – Q3 2011 US$ in millions, except percentages YOY Change 2 ppt 14% 10% 18% Note: Growth rates calculated based on whole numbers, not rounded numbers. Fiscal 2010 Fiscal 2011 58% 56% Operating Margin 2,029 2,322 1,137 1,345 Net Operating
Slide 13: Operating Expenses - Q3 2011
Fiscal Third Quarter 2011 Financial Results 13 US$ in millions, except percentages Personnel Network and Processing Marketing Professional Fees Depreciation and Amortization General and Administrative YOY Change 27% (12)% (9)% 9% 18% 32% Note: Growth rates calculated based on whole numbers, not roun
Slide 14: Visa
VISA
Slide 15: Other Financial Results
Fiscal Third Quarter 2011 Financial Results 15 Other Financial Results • Cash, cash equivalents, restricted cash and available-for-sale investment securities of $6.7 billion at the end of the fiscal third quarter which includes $2.9 billion of restricted cash in the litigation escrow account • Total
Slide 16: Financial Metrics for Fiscal Year 2011
Fiscal Third Quarter 2011 Financial Results 16 Less than $900 million Marketing expenses Financial Metrics for Fiscal Year 2011 Annual operating margin About 60% Top end of the 16% to 16.5% range Client incentives as % of gross revenues Annual net revenue growth 11% to 15% range
Slide 17: Financial Metrics for Fiscal Year 2011
Fiscal Third Quarter 2011 Financial Results 17 Financial Metrics for Fiscal Year 2011 Capital expenditures Moderately above $300 million Annual diluted class A common stock earnings per share growth 20% + GAAP tax rate, excluding the revaluation of the Visa Europe put option 36.5% to 37% range Annua
Slide 18: Financial Metrics for Fiscal Year 2012
Fiscal Third Quarter 2011 Financial Results 18 Financial Metrics for Fiscal Year 2012 Mid to high teens Annual diluted class A common stock earnings per share growth Annual net revenue growth High single to low double digit range
Slide 19: Appendix: Reconciliation of Non-GAAP Measures
Appendix Reconciliation of Non-GAAP Measures
Slide 20: Visa
VISA
Slide 21: Calculation of Free Cash Flow
Fiscal Third Quarter 2011 Financial Results A2 Calculation of Free Cash Flow US$ in millions (1) Includes changes in client incentives, trade receivables, settlement receivable/payable, and personnel incentives. Calculation of Free Cash Flow US$ in millions Additions (+) / Reductions (-) to Net inco
Slide 22: Three Months Ended June 30, 2011: Impact of PlaySpan Acquisition
Fiscal Third Quarter 2011 Financial Results A3 Three Months Ended June 30, 2011 Impact of PlaySpan Acquisition US$ in millions, except per share data The following table presents the impact of the PlaySpan acquisition on Visa’s adjusted diluted earnings per share. (1) (2) (3) Represents tax rate app
Slide 23: Three Months Ended June 30, 2011: Impact of Fundamo Acquisition
Fiscal Third Quarter 2011 Financial Results Three Months Ended June 30, 2011 A4 Impact of Fundamo Acquisition US$ in millions, except per share data The following table presents the impact of the Fundamo acquisition on Visa’s adjusted diluted earnings per share. (1) (2) See slide A1 for a reconcilia