Slide 1: MasterCard Incorporated Third Quarter Financial Results Conference Call
MasterCard Incorporated rd Quar ter Financial Results Conference Call November 3, 2008 Exhibit 99.2
Slide 2: Business Update
Business Update Economic Overview Business Overview Recent Litigation Settlement
Slide 3: Items for Consideration
Items for Consideration Initial thoughts for 2009: – Net revenue growth will be lower than longer-term objective range – Operating expenses will be essentially flat over 2008 levels Longer-term objectives remain in place – Objectives assume constant FX – Recent global economic and financial environm
Slide 4: 3rd Quarter Selected Financial Performance
$ 2.47 $ 322 41.0% $ 1,338 3Q 2008 adjusted for special items* 2.31 32.6% $ 1,083 3Q 2007 adjusted for special items* $ (1.49) $ (194) (279) (20.9%) 1,617 $ 1,338 3Q 2008 Actual 6.9 Diluted EPS 2.3 Net income (loss) 8.3 Total operating expenses 55.2 8.4 ppts Operating income (loss) Operating margin
Slide 5: MasterCard Branded Volume (GDV)
MasterCard Branded Volume (GDV) 3rd Quarter 2008 Note: Figures may not sum due to rounding 4.7 4.7 United States 12.3 14.8 Worldwide 16.0 16.5 Canada 32.9 27.2 South Asia/Middle East/Africa 21.3 23.6 Asia Pacific 15.5 24.0 Latin America 16.8 23.0 Europe Local Currency U.S. Dollar GDV ($ billions) YO
Slide 6: 3rd Quarter Revenue - Operations Fees
3rd Quarter Revenue - Operations Fees ($ in millions) Net operations fees increased 25.8%, or $204, to $996 Gross operations fees increased 24.8%, or $218, to $1,097. Key drivers included: – Processed transactions growth of 13.0% – GDV growth of 14.8% * – Cross-border fee increases and 18.0% volume
Slide 7: 3rd Quarter Revenue - Assessments
3rd Quarter Revenue - Assessments ($ in millions) Net assessments increased 17.5%, or $51, to $342 Gross assessments increased 15.0%, or $79, to $604 due to strong GDV growth of 14.8% * Net assessments as a % of gross assessments improved slightly * On a U.S. dollar basis $291 $342 $0 $50 $100 $150
Slide 8: 3rd Quarter Operating Expenses
3rd Quarter Operating Expenses ($ in Millions) *See Appendix A for a GAAP reconciliation of special items for the three months ended September 30, 2007 and 2008 Excluding special items * : Total operating expenses increased 8.3%, or $60, to $790 G&A increased 14.1%, or $61, to $494 primarily due to:
Slide 9: Cash Flow Statement and Balance Sheet Highlights
Cash Flow Statement and Balance Sheet Highlights Generated $388 million in cash flow from operations during the third quar ter; and $931 million during the nine months ended September 30, Cash, cash equivalents and current available-for-sale securities of $2.8 billion at September 30, 2008 Litigatio
Slide 10: MasterCard Worldwide: The Heart of Commerce
MasterCard Worldwide The Heart of Commerce”
Slide 11: Appendix A: GAAP Reconciliation
Appendix A: GAAP Reconciliation a Discover litigation settlement NM = Not meaningful Figures may not sum due to rounding ($ million) YOY Growth Actual Special Items As Adjusted Actual Special Items As Adjusted As Adjusted Revenues, net $ 1,338 $ - $ 1,338 $ 1,083 $ - $ 1,083 23.6% Operating Expenses