Slide 1: Fourth Quarter and Full Year 2021 Financial Results Conference Call
Mastercard Incorporated Fourth Quarter and Full Year 2021 Financial Results Conference Call January 27, 2022
Slide 2: Business Update
Business Update Key Trends Business Highlights Financial Overview ©2022 Mastercard January 27, 2022 2
Slide 3: 4th Quarter Selected Financial Performance
4th Quarter Selected Financial Performance ($ in millions, except per share data) 4Q 21 4Q 20 YOY Growth Non-GAAP Non-GAAP As adjusted Currency-neutral Net revenue $ 5,216 $ 4,120 27% 28% Adjusted operating expenses 2,389 2,018 18% 19% Adjusted operating income 2,827 2,102 34% 37% Adjusted operating
Slide 4: 4th Quarter Gross Dollar Volume (GDV)
4th Quarter Gross Dollar Volume (GDV) ($ in billions) Worldwide United States Rest of World 23% Growth 23% Growth 23% Growth $1,747 $2,113 $1,800 $1,600 $1,460 $1,400 $1,135 $1,218 $1,200 $949 $1,000 $802 $652 $659 $800 $528 $600 $978 $334 $400 $798 $290 $560 $659 $200 $319 $238 $0 4Q20 4Q21 4Q20 4Q
Slide 5: 4th Quarter Switched Transactions and Cards
4th Quarter Switched Transactions and Cards Switched Transactions Cards 27% Growth 9% Growth 4,000 40 2,978 3,000 2,733 Transactions (in billions) 31.4 Cards (in millions) 390 30 409 24.8 2,000 20 2,588 2,324 10 1,000 0 0 4Q20 4Q21 4Q20 4Q21 ©2022 Mastercard Mastercard Cards Maestro Cards Notes: Fig
Slide 6: 4th Quarter Revenue
4th Quarter Revenue ($ in millions) 4Q20 4Q21 $6,000 $5,216 $5,000 $4,120 $4,000 $2,987 $3,000 $2,165 $2,379 $1,749 $1,840 $2,000 $1,380 $1,431 $867 $1,000 $0 $-1,000 $-2,000 $-3,000 $(2,306) $-4,000 $(3,156) Domestic Cross-Border Transaction Other Rebates and Growth Assessments Volume Fees Processi
Slide 7: 4th Quarter Adjusted Operating Expenses
4th Quarter Adjusted Operating Expenses ($ in millions) 4Q20 4Q21 $3,000 $2,500 $2,389 $2,018 $2,000 $1,862 $1,625 $1,500 $1,000 $500 $242 $338 $150 $189 $0 Growth General & Administrative Advertising & Marketing Depreciation & Amortization Adjusted Operating Expenses Non-GAAP 15% 40% 25% 18% Curren
Slide 8: Business Update Through January 21
st Business Update Through January 21 Year-over-year growth % Current period as a percentage of 20191 2021 2022 2021 2022 Q3 Oct Nov Dec Q4 Jan 21 Q3 Oct Nov Dec Q4 Jan 21 3 MTD MTD 2 Switched volume 28% 31% 33% 29% 31% 27% 131% 136% 139% 134% 136% 149% United States 23% 24% 27% 24% 25% 15% 129% 133
Slide 9: Looking Ahead
Looking Ahead Further thoughts on 2022 Long term performance objectives ©2022 Mastercard January 27, 2022 9
Slide 10: 2022 – 2024 performance objectives - reiterated
2022 – 2024 performance objectives - reiterated 1 Currency-neutral basis, excluding special items, gains/losses on equity investments and future acquisitions ©2022 Mastercard 1 Excludes acquisitions completed after December 31, 2021. 2 Based on 2021 actual revenues of $18.9M and EPS of $8.40, on a c
Slide 11: Appendices
Appendices
Slide 12: Non-GAAP Reconciliation
Appendix A Non-GAAP Reconciliation ($ in millions, except per share data) Three Months Ended December 31, 2021 Operating Operating Operating Other Income Effective income Diluted earnings expenses income margin (Expense) tax rate Net income per share Reported - GAAP $ 2,389 $ 2,827 54.2 % $ (4) 15.7
Slide 13: Non-GAAP Reconciliation (continued)
Appendix A (continued) Non-GAAP Reconciliation Three Months Ended December 31, 2021 as compared to the Three Months Ended December 31, 2020 Increase/(Decrease) Operating Operating Operating Effective income Diluted earnings Net revenue expenses income margin tax rate Net income per share Reported -
Slide 14: Non-GAAP Reconciliation: 2022 financial outlook
Appendix B Non-GAAP Reconciliation 2022 financial outlook 2022 vs. 2021 Increase/(Decrease) Net Revenue Operating Expenses 1 Forecasted Growth - GAAP High-teens Low-double-digits 2 Litigation provisions ** 1% 3 Indirect tax matter ** 1% Non-GAAP Growth High-teens Low-teens 4 Currency impact 1-2% ~1%
Slide 15: Non-GAAP Reconciliation: First quarter 2022 financial outlook
Appendix C Non-GAAP Reconciliation First quarter 2022 financial outlook Q1'22 vs. Q1'21 Increase/(Decrease) Net Revenue Operating Expenses 1 Forecasted Growth - GAAP High-teens Low-teens 2 Litigation provisions ** ** Non-GAAP Growth High-teens Low-teens 3 Currency impact 2-3% ~1% 4 Acquisitions ~(2)
Slide 16: FY2021 Full Year Non-GAAP EPS Reconciliation
Appendix D 1 FY2021 Full Year Non-GAAP EPS Reconciliation ($ in millions) 2021 Diluted Earnings Per Share GAAP $8.76 2 (Gains) losses on equity investments (0.50) 3 Litigation provisions 0.07 4 Indirect tax matter 0.07 2021 Diluted Earnings Per Share Non-GAAP $8.40 Note: Figures may not sum due to r
Slide 17: Revenue Growth Drivers
Appendix E Revenue Growth Drivers Three Months Ended December 31, 2021 as compared to the Three Months Ended December 31, 2020 Currency 3 Operational Acquisitions Impact Total 1 Domestic assessments 24 % —% (1)% 24 % 1 Cross-border volume fees 61 % —% (2)% 59 % 1,2 Transaction processing 28 % —% (2)
Slide 18: Operating Expense Growth Drivers (Non-GAAP)
Appendix F 1 Operating Expense Growth Drivers (Non-GAAP) Three Months Ended December 31, 2021 as compared to the Three Months Ended December 31, 2020 Currency 2 Operational Acquisitions Impact Total General and administrative 8% 7% —% 15 % Advertising and marketing 41 % 1% (2)% 40 % Depreciation and
Slide 19: 4th Quarter G&A Detail
Appendix G 4th Quarter G&A Detail ($ in millions) Increase/(Decrease) 4Q 21 4Q 20 $ % Personnel $ 1,089 $ 970 $ 119 12 % Professional fees 135 126 9 8% Data processing and telecommunications 255 205 50 24 % 1 Foreign exchange activity 16 19 (3) (20)% Other 367 305 62 20 % Total general and administr