Visa Inc. · NYSE:V
Visa — Q1 2009 Earnings Presentation
18 slides from Visa's earnings presentation, Feb 4, 2009
Slide 1: Visa Inc. Fiscal First Quarter 2009 Financial Results
Exhibit 99.2 Visa Inc. Fiscal First Quarter 2009 Financial Results February 4, 2009
Slide 2: Safe Harbor Reminder
Safe Harbor Reminder • Certain statements contained in this press release are forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, which are subject to the “safe harbor” created by
Slide 3: Solid Fiscal First Quarter Results
Solid Fiscal First Quarter Results • Adjusted quarterly net income of $599 million or adjusted diluted earnings of $0.78 per share • Strong operating revenues of $1.7 billion, up 17% • Continued positive secular trends • Business model resilience despite economic slowdown Note: See appendix for reco
Slide 4: Payments Volume
Payments Volume – Q1 2009 US$ in billions, nominal Quarter ended September 2008 $701 2009 $623 U.S. $452 U.S. $421 $412 $388 U.S. U.S. $213 $206 $249 ROW $212 $280 U.S. ROW ROW ROW U.S. $208 (Rest of World) $206 $239 $182 $235 ROW $29 ROW $41 Total Visa Inc. Credit Debit YOY 12% 10% 18% Growth Note:
Slide 5: Payments Volume by Region
Payments Volume – Q1 2009 US$ in billions, nominal Quarter ended September 2008 2009 $421 $388 $163 $140 $38 $51 $42 $44 $15 $21 United States Asia Pacific (AP) Latin America and Canada Central and Caribbean (LAC) Eastern Europe, Middle East and Africa (CEMEA) YOY 9% 16% 33% 7% 39% Growth Note: Grow
Slide 6: Transactions
Transactions – Q1 2009 in millions Quarter ended September Quarter ended December 2008 14,483 2009 12,799 Credit 39% 9,590 9,797 9,094 8,645 Debit 61% Total Transactions Processed Transactions Processed Transactions YOY 13% 11% 8% Growth Note: Processed transactions represent transactions involving
Slide 7: Total Cards
Total Cards in millions Quarter ended September 2008 1,676 2009 1,526 812 864 769 757 Credit Debit Visa Inc. YOY 6% 14% 10% Growth Fiscal Q1 2009 Earnings Results 7
Slide 8: Revenue Detail
Revenue Detail – Q1 2009 US$ in millions 2008 2009 $2,008 $1,738 $1,739 $1,488 Gross Net Operating Revenues Revenues ($250) ($269) Incentives YOY 16% 8% 17% Growth Fiscal Q1 2009 Earnings Results 8
Slide 9: Revenue Detail by Type
Revenue Detail – Q1 2009 US$ in millions 2008 2009 $793 $732 $554 $492 $505 $381 $156 $133 Service Revenues Data International Other Processing Transaction Revenues Revenues Revenues YOY 8% 13% 33% 17% Growth Fiscal Q1 2009 Earnings Results 9
Slide 10: Adjusted Operating Margin
Adjusted Operating Margin – Q1 2009 US$ in millions 2008 2009 58% $1,739 $1,488 49% $1,011 $757 $728 $731 Net Operating Total Operating Operating Income Operating Margin Revenues Expenses YOY 9 ppts 17% (4%) 38% Growth Note: Adjusted operating expenses exclude certain litigation reserves, restructur
Slide 11: Adjusted Operating Expenses
Adjusted Operating Expenses – Q1 2009 US$ in millions $256 $248 2008 $210 $210 2009 $93 $89 $83 $79 $74 $63 $45 $35 Personnel Network, Advertising, Professional Depreciation Administrative EDP & Marketing & and and and Other Communications Promotion Consulting Amortization Fees YOY Growth (3%) 12% 0
Slide 12: Other Financial Results
Other Financial Results • Capital expenditures during the fiscal first quarter 2009 were $68 million • Cash, cash equivalents, restricted cash and investment securities available-for-sale of $5.6 billion – $2.6 billion of restricted cash for litigation escrow – $2.7 billion paid in October redemptio
Slide 13: Financial Metrics through Fiscal Year 2010
Financial Metrics through Fiscal Year 2010 FY 2009: high single Annual net revenue growth digits FY 2010: 11-15% Mid-to-High Annual adjusted operating margin 40% range Annual adjusted diluted class A common earnings per share growth 20% + Annual free cash flow $1 billion + FY 2009: $300-350 M Capita
Slide 14: Appendix – Reconciliation of Non-GAAP Measures
Appendix – Reconciliation of Non-GAAP Measures
Slide 15: Adjusted Operating Income and Net Income
Adjusted Operating Income and Net Income US$ in millions For the Three Months For the Three Months Ended Ended December 31, 2008 December 31, 2007 Net income (as reported) $ 574 $ 424 Addback: Income tax expense (as reported) 379 259 Net income before taxes (as reported) $ 953 $ 683 Adjustments: Res
Slide 16: Reconciliation of Non-GAAP Adjusted Operating Expenses
Reconciliation of Non-GAAP Adjusted Operating Expenses US$ in millions For the Three Months For the Three Months Ended December 31, 2008 Ended December 31, 2007 Actual Adjustments As Adjusted Actual Adjustments As Adjusted (1) (1) Personnel $ 275 $ (27) $ 248 $ 283 $ (27) $ 256 Network, EDP and comm
Slide 17: Reconciliation of Non-GAAP Adjusted Non-operating (Expense) Income
Reconciliation of Non-GAAP Adjusted Non-operating (Expense) Income US$ in millions For the Three Months For the Three Months Ended December 31, 2008 Ended December 31, 2007 Actual Adjustments As Adjusted Actual Adjustments As Adjusted Equity in earnings of unconsolidated affiliates $ (1) - $ (1) $ 1
Slide 18: Class A Common Stock Adjusted Diluted Earnings per Share
Class A Common Stock Adjusted Diluted Earnings per Share • Management believes the presentation of adjusted operating income and adjusted net income provides a clearer understanding of the one-time items related to the Company's reorganization,initial public offering and other non-recurring events.