Slide 1: First-Quarter 2018 Financial Results Conference Call
Mastercard Incorporated © 2 0 1 8 M First-Quarter 2018 Financial Results Conference Call a s t e r c a r d . P r o p r i May 2, 2018 e t a r y a n d C o n f i d e n t
Slide 2: Business Update; Financial & Operational Overview; Economic Update
Business Update Financial & Operational Overview Economic Update Business Highlights ©2018 Mastercard May 2, 2018 2
Slide 3: 1st Quarter Selected Financial Performance
1st Quarter Selected Financial Performance ($ in millions, except per share data) YOY Growth 1Q 18 1Q 17 Currency Non-GAAP1 Non-GAAP1 Non-GAAP Neutral Net revenue $ 3,580 $ 2,734 31% 27% Total operating expenses 1,638 1,213 35% 32% Operating income 1,942 1,521 28% 23% Operating margin 54.2% 55.6% (1
Slide 4: Gross Dollar Volume (GDV)
1st Quarter Gross Dollar Volume (GDV) ($ in billions) Worldwide United States Rest of World 14% Growth 10% Growth 16% Growth $1,600 $1,415 $1,400 $1,187 $1,200 $996 $1,000 $691 $564 $807 $800 $466 $600 $419 $363 $379 $400 $725 $623 $201 $225 $530 $200 $444 $178 $194 $0 1Q17 1Q18 1Q17 1Q18 1Q17 1Q18
Slide 5: Switched Transactions and Cards
1st Quarter Switched Transactions and Cards Switched Transactions Cards 13% Growth 3% Growth 17% Adjusted Growth* 6% Adjusted Growth* 17,500 16,681 3,000 Transactions (in millions) 14,700 2,392 15,000 2,500 2,313 Cards (in millions) 12,500 540 2,000 630 10,000 1,500 7,500 1,852 1,683 1,000 5,000 2,5
Slide 6: Revenue
1st Quarter Revenue ($ in millions) 1Q17 1Q18 $5,000 $4,000 $3,580 $2,734 $3,000 $1,707 $2,000 $1,189 $1,458 $916 $1,157 $1,347 $561 $748 $1,000 $0 -$1,000 -$2,000 $(1,279)$(1,490) Domestic Cross-Border Transaction Other Rebates and Growth Assessments Volume Fees Processing Fees Revenues Incentives
Slide 7: Operating Expenses
1st Quarter Operating Expenses ($ in millions) 1Q17 1Q18 $2,000 $1,638 $1,500 $1,294 $1,213 $951 $1,000 $500 $224 $170 $92 $120 $0 Growth General & Administrative Advertising & Marketing Depreciation & Amortization Total Operating Expenses* Non-GAAP 36% 32% 30% 35% Currency-neutral 33% 27% 28% 32% ©
Slide 8: Looking Ahead
Looking Ahead Business update through April 28th Thoughts for 2018 ©2018 Mastercard May 2, 2018 8
Slide 9: Thoughts for 2018
Thoughts for 2018 Well-Positioned to Deliver Strong Operating Performance 2018 Estimated Growth (Currency-neutral) Prior Updated Operating Operating Net Revenue Expenses 1 Net Revenue Expenses 1 Low-double Non-GAAP Growth Mid-teens High-teens Mid-teens digits Adjustments: Acquisition impact ~ (0.5)
Slide 10: Appendices
Appendices
Slide 11: Appendix A: Non-GAAP Reconciliation
Appendix A Non-GAAP Reconciliation Three Months Ended March 31, 2018 Operating Effective income Diluted earnings expenses Operating income Operating margin tax rate Net income per share ($ in millions, except per share data) Reported - GAAP $ 1,755 $ 1,825 51.0 % 17.3 % $ 1,492 $ 1.41 Special Items
Slide 12: Appendix A (continued): Non-GAAP Reconciliation
Appendix A (continued) Non-GAAP Reconciliation Three Months Ended March 31, 2018 as compared to the Three Months Ended March 31, 2017 Increase/(Decrease) Diluted Operating Operating Operating Effective income earnings per Net revenue expenses income margin tax rate Net income share Reported - GAAP 3
Slide 13: Appendix B: Non-GAAP Reconciliation
Appendix B Non-GAAP Reconciliation Three Months Ended March 31, 2018 as compared to the Three Months Ended March 31, 2017 Increase/(Decrease) Net revenue Operating expenses Operating income Non-GAAP - currency-neutral 1 27 % 32 % 23 % Acquisition impact 2 (2.5)% (8)% 2% Impact of new revenue recogni
Slide 14: Appendix C: Non-GAAP Reconciliation, 2018 full-year outlook
Appendix C Non-GAAP Reconciliation 2018 full-year financial outlook 2018 vs. 2017 Increase/(Decrease) Prior Updated Net revenue Operating expenses Net revenue Operating expenses Low end of high- Forecasted growth - U.S. GAAP 1 double digits Low-double digits Low 20's Mid-teens Special items 2 ** 3%