Visa Inc. · NYSE:V
Visa — Q1 2015 Earnings Presentation
15 slides from Visa's earnings presentation, Jan 29, 2015
Slide 1: Visa Inc. Fiscal First Quarter 2015 Financial Results
Visa Inc. Fiscal First Quarter 2015 Financial Results January 29, 2015
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," "expectation," "will," "continued" and other similar exp
Slide 3: Solid Fiscal First Quarter Results
Solid Fiscal First Quarter Results Solid operating revenues of $3.4 billion, up 7% over prior year Quarterly net income of $1.6 billion and diluted earnings per share of $2.53, up 11% and 15%, respectively, over prior year Repurchased 3.1 million shares of class A common stock in the open market at
Slide 4: Payments Volume
Payments Volume US$ in billions, nominal, except percentages Quarter ended September 2013 2014 1,217 INTL = International 1,104 U.S. U.S. 575 632 771 697 U.S. U.S. 277 313 446 407 INTL INTL U.S. U.S. INTL INTL 529 585 298 319 420 458 INTL 109 INTL 127 Total Visa Inc. Credit Debit YOY Change 10% (nom
Slide 5: Payments Volume
Payments Volume US$ in billions, nominal, except percentages Quarter ended December 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 r
Slide 6: Transactions
Transactions in millions, except percentages Quarter ended December 2013 2014 25,975 23,653 Credit Credit 38% 38% 17,599 Credit Credit 15,985 38% 38% Debit Debit 62% 62% Debit 62% Total Transactions Processed Transactions YOY 10% 10% Change Note: Processed transactions represent transactions involvi
Slide 7: Total Cards
Total Cards in millions, except percentages Quarter ended September 2013 2,341 2014 2,179 1,491 1,375 804 850 Visa Inc. Credit Debit YOY Change 7% 6% 8% Note: The data presented is based on results reported quarterly by Visa clients on their operating certificates. Estimates may be utilized if data
Slide 8: Revenue – Q1 2015
Revenue – Q1 2015 US$ in millions, except percentages Fiscal 2014 Fiscal 2015 4,095 3,754 3,382 3,155 (599) (713) Gross Revenues Client Net Operating Incentives Revenues YOY Change 9% 19% 7% Fiscal 2015 % of Gross Revenues 17% 83% Note: Figures may not recalculate exactly due to rounding. Percentage
Slide 9: Revenue Detail – Q1 2015
Revenue Detail – Q1 2015 US$ in millions, except percentages Fiscal 2014 Fiscal 2015 1,538 1,419 1,383 1,264 970 891 180 204 Service Revenues Data Processing International Other Revenues Revenues Transaction Revenues YOY Change 8% 9% 9% 14% Note: Figures may not recalculate exactly due to rounding.
Slide 10: Operating Margin – Q1 2015
Operating Margin – Q1 2015 US$ in millions, except percentages Fiscal 2014 Fiscal 2015 3,382 3,155 66% 66% 2,238 2,077 1,078 1,144 Net Operating Total Operating Operating Operating Revenues Expenses Income Margin YOY Change 7% 6% 8% — Note: Operating margin is calculated as operating income divided
Slide 11: Operating Expenses – Q1 2015
Operating Expenses – Q1 2015 US$ in millions, except percentages Fiscal 2014 Fiscal 2015 509 470 205 186 132 126 114 107 120 108 75 70 Personnel Marketing Network & Professional Depreciation & General & Processing Fees Amortization Administrative YOY Change 8% 10% (13%) (6%) 12% 15% Note: Figures ma
Slide 12: Other Financial Results
Other Financial Results • Cash, cash equivalents and available-for-sale investment securities of $7.5 billion at the end of the fiscal first quarter • Free cash flow of $1.9 billion for the fiscal first quarter • Capital expenditures of $104 million during the fiscal first quarter • Declared a four-
Slide 13: Financial Metrics for Fiscal Year 2015
Financial Metrics for Fiscal Year 2015 • Constant dollar revenue growth of low double digits Annual net revenue growth • Negative 2 ppts foreign currency impact Client incentives as % of gross revenues • 17.5% - 18.5% range Annual operating margin • Mid 60s Tax rate • Low 30s Annual diluted class A
Slide 14: Appendix
Appendix
Slide 15: Calculation of Free Cash Flow
Calculation of Free Cash Flow US$ in millions Additions (+) / Reductions (-) to Three Months Ended Net income December 31, 2014 Net income (as reported) 1,569 Capital Assets + Depreciation and amortization 120 - Capital expenditures (104) 16 Litigation + Litigation provision - - Settlement payments