Slide 1: Fourth-Quarter and Full-Year 2010 Financial Results Conference Call
MasterCard Incorporated Fourth-Quarter and Full-Year 2010 Financial Results Conference Call February 3, 2011
Slide 2: Business Update
Business Update Operational Overview Regulatory Update Business Highlights
Slide 3: Selected Financial Performance
4th Quarter Selected Financial Performance ($ in millions, except per share data) 4Q 2010 4Q 2009 YOY Actual Actual Growth % Net revenue $ 1,438 $ 1,299 10.7% Total operating expenses 869 831 4.6% Operating income 569 468 21.6% Operating margin 39.6% 36.1% 3.5 ppts Net income $ 415 $ 294 41.2% Dilut
Slide 4: Gross Dollar Volume (GDV)
4th Quarter Gross Dollar Volume (GDV) 4Q 09 4Q 10 Worldwide 11.0% Growth $678 $752 $230 $265 $449 $488 United States 2.1% Growth $248 $253 $132 $135 $116 $118 4Q 09 4Q 10 Rest of World 16.1% Growth $430 $499 $317 $353 $114 $147 4Q 09 4Q 10 Credit Debit GDV (in $billions) Notes: 1. Growth rates are s
Slide 5: Processed Transactions and Cards
4th Quarter Processed Transactions and Cards Processed Transactions 6.3% Growth Transactions (in million) 7,000 6,000 5,000 4,000 3,000 2,000 1,000 5,861 6,233 4Q 09 4Q 10 2,000 1,800 1,600 1,400 1,200 1,000 Cards 2.5% Growth 1,601 1,642 4Q 09 4Q 10 MasterCard Maestro Cards (in millions) Note: Figur
Slide 6: Revenue
4th Quarter Revenue ($ in millions) $1,800 $1,600 $1,400 $1,200 $1,000 $800 $600 $400 $200 $0 -$200 -$400 -$600 4Q 2009 4Q 2010 $640 $733 $557 $606 $454 $472 $222 $221 $1,438 $1,299 ($574) ($594) Net Revenue increased 10.7%; or 13.0% on a constant currency basis Domestic Assessments increased 14.5%
Slide 7: Operating Expenses
4th Quarter Operating Expenses ($ in millions) $900 $800 $700 $600 $500 $400 $300 $200 $100 $0 $507 $518 4Q 2009 4Q 2010 $286 $305 $38 $42 $869 $831 General & Administrative Advertising & Marketing Depreciation & Amortization Total Operating Expenses Total Operating Expenses increased 4.6%; or 6.1%
Slide 8: Full-Year 2010 Highlights
Full-Year 2010 Highlights Achieved net revenue of $5.5 billion Growth of 8.6%, or 9.5% on a constant currency basis Increased operating income by 21.8% Operating margin of 49.7% Delivered net income of $1.8 billion Growth of 26.2%, or 27.9% on a constant currency basis Diluted EPS of $14.05
Slide 9: 2010 Cash Flow Statement and Balance Sheet Highlights
4th Quarter 2010 Cash Flow Statement and Balance Sheet Highlights Generated $670 million in cash flow from operations for the quarter ended 12/31/2010 Cash, cash equivalents and other liquid investments of $4.2 billion at 12/31/2010
Slide 10: Looking Ahead
Looking Ahead Business update through January 28 Thoughts for 2011 Long-term objectives: 2011-2013
Slide 11: MasterCard Worldwide
MasterCard Worldwide The Heart of Commerce TM
Slide 12: Appendix A: Cross-Border Pricing Change
Appendix A Cross-Border Pricing Change ($ in millions) ($ in millions) Simplified structure with no Net Revenue impact Adjusted View [1,2] As Reported B/(W) B/(W) Q4 2009 $% growth $% growth Gross Revenue 1,816 n/a 1,873 13.5 Rebates & Incentives(517) n/a(574)(35.1) Net Revenue 1,299 n/a 1,299 6.0 R
Slide 13: Appendix B: 4th Quarter G&A Detail
Appendix B 4th Quarter G&A Detail ($ in millions) Dollar Percent For the three months ended Increase Increase December 31 (Decrease)(Decrease) 2010 vs. 2010 vs. 2010 2009 2009 2009 Personnel $ 328 $350 $ (22)(6.4) Professional fees 72 52 20 37.7 Telecommunications 14 16(2)(16.0) Data processing 24 2