Visa Inc. · NYSE:V
Visa — Q3 2018 Earnings Presentation
15 slides from Visa's earnings presentation, Jul 25, 2018
Slide 1: Visa Inc. Fiscal Third Quarter 2018 Financial Results
Exhibit 99.2 Visa Inc. Fiscal Third Quarter 2018 Financial Results July 25, 2018
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 that relate to, among other things, our future operations, prospects, developments, strategies, business growth and financial outlook for f
Slide 3: Fiscal Third Quarter 2018 Results
Fiscal Third Quarter 2018 Results in billions, except percentages and per share data USD YoY Change Net Operating Revenues $5.2 15% GAAP Net Income $2.3 13% Adjusted Net Income(1) $2.8 36% GAAP Earnings Per Share $1.00 16% Adjusted Earnings Per Share(1) $1.20 39% (1) Adjusted Net Income and Adjusted
Slide 4: Payments Volume
Payments Volume US$ in billions, nominal, except percentages Quarter ended March 2017 2018 1,998 INTL = International 1,736 U.S. U.S. 854 776 1,116 979 882 U.S. U.S. 758 446 U.S. INTL 404 U.S. INTL 409 1,143 372 960 INTL INTL INTL INTL 575 670 386 473 Total Visa Inc. Credit Debit YoY Change (nominal
Slide 5: Payments Volume
Payments Volume US$ in billions, nominal, except percentages Quarter ended June Current quarter payments volume and other select metrics are provided in the operational performance data supplement in the earnings release to provide more recent operating data. Service revenues continue to be recogniz
Slide 6: Transactions
Transactions in millions, except percentages Quarter ended June 2017 46,458 2018 42,216 34% 34% Credit 31,728 Credit 28,450 Credit Credit 38% 38% 66% 66% Debit Debit Debit 62% Total Transactions Processed Transactions YoY Change 10% 12% Note: Total transactions represent payments and cash transactio
Slide 7: Total Cards
Total Cards in millions, except percentages Quarter ended March 2017 3,283 2018 3,156 2,096 2,185 1,060 1,097 Total Visa Inc. Credit Debit YoY Change 4% 4% 4% Note: The data presented is based on results reported quarterly by Visa clients on their operating certificates. Estimates may be utilized if
Slide 8: Revenue – Q3 2018
Revenue – Q3 2018 US$ in millions, except percentages Fiscal 2017 Fiscal 2018 6,614 5,712 5,240 4,565 20.1% 20.8% (1,147) (1,374) Gross Client Net Operating Client Incentives as a Revenues Incentives Revenues % of Gross Revenues YoY Change 16% 20% 15% 0.7ppt Note: Figures may not recalculate exactly
Slide 9: Revenue Detail – Q3 2018
Revenue Detail – Q3 2018 US$ in millions, except percentages Fiscal 2017 Fiscal 2018 2,359 2,196 1,948 1,984 1,830 1,571 209 229 Service Revenues Data Processing International Other Revenues Revenues Transaction Revenues YoY Change 13% 19% 16% 9% Note: Figures may not recalculate exactly due to roun
Slide 10: Operating Margin – Q3 2018
Operating Margin – Q3 2018 US$ in millions, except percentages Reported GAAP Fiscal 2017 Reported GAAP Fiscal 2018 Adjusted non-GAAP Fiscal 2018 5,240 4,565 3,485 3,024 2,885 66% 67% 2,355 55% 1,755 1,541 Net Operating Operating Operating Operating Revenue Expenses Income Margin YOY Change 15% (Repo
Slide 11: Operating Expenses – Q3 2018
Operating Expenses – Q3 2018 US$ in millions, except percentages Reported GAAP Fiscal 2017 Reported GAAP Fiscal 2018 Adjusted non-GAAP Fiscal 2018 852 698 600 221 240 230 230 158 169 132 152 102 112 0 0 Personnel Marketing Network & Professional Fees Depreciation & General & Litigation Provision Pro
Slide 12: Other Financial Results and Highlights
Other Financial Results and Highlights • Cash, cash equivalents and available-for-sale investment securities of $14.6 billion at June 30, 2018 • Adjusted free cash flow of $3.5 billion for the fiscal third quarter • Capital expenditures of $169 million during the fiscal third quarter • On June 28, 2
Slide 13: Financial Outlook for Fiscal Full-Year 2018
Financial Outlook for Fiscal Full-Year 2018 Low double-digits on a nominal dollar basis, with approximately 1 percentage Annual net revenue growth point of positive foreign currency impact Client incentives as a percentage of gross Low end of 21.5% to 22.0% range revenues Annual operating expense Hi
Slide 14: Appendix
Appendix
Slide 15: Calculation of Adjusted Free Cash Flow
Calculation of Adjusted Free Cash Flow Management believes that presentation of adjusted free cash flow is useful to measure the Company’s generation of cash available to first re-invest in the business and then return excess cash to shareholders through stock buybacks and cash dividends. During the