Exhibit 99.1

 

 

 

Visa Inc. Reports Fiscal Third Quarter 2013 Net Income of $1.2 billion or $1.88 per diluted share and Authorizes New $1.5 Billion Share Repurchase Program

 

 

 

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Broad-based net revenue growth of 17%

 

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Company repurchased 6 million shares during the quarter and authorized a new $1.5 billion share repurchase program

Foster City, CA, July 24, 2013 – Visa Inc. (NYSE: V) today announced financial results for the Company’s fiscal third quarter 2013 ended June 30, 2013. Net income for the quarter was $1.2 billion or $1.88 per share, an increase of 16% and 20%, respectively, over the prior year adjusted results. The prior year results were adjusted to exclude a litigation provision of $4.1 billion and related tax benefits associated with the Multidistrict Litigation proceedings taken in the fiscal third quarter of 2012.

All references to earnings per share assume fully-diluted class A share count unless otherwise noted. The Company’s adjusted quarterly net income per share of class A common stock is a non-GAAP financial measure that is reconciled to its most directly comparable GAAP measure in the accompanying financial tables.

Net operating revenue in the fiscal third quarter of 2013 was $3.0 billion, an increase of 17% over the prior year, driven by strong growth in service revenues, data processing revenues and international transaction revenues.

“Visa delivered solid financial performance during our fiscal third quarter and we remain confident in delivering our guidance for fiscal year 2013,” said Charlie Scharf, Chief Executive Officer of Visa Inc. “We remain committed and focused on our long-term strategic goal of supporting our issuers, acquirers, merchants and government partners through flexibility and innovation in electronic payments. We are accelerating opportunities to expand our network through mobile, eCommerce and data-driven solutions, while continuing to deliver value to our shareholders.”

 

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Fiscal Third Quarter 2013 Financial Highlights:

Payments volume growth, on a constant dollar basis, for the three months ended March 31, 2013, on which fiscal third quarter service revenue is recognized, was 9% over the prior year at $1.0 trillion.

Payments volume growth, on a constant dollar basis, for the three months ended June 30, 2013, was 13% over the prior year at $1.1 trillion.

Cross-border volume growth, on a constant dollar basis, was 11% for the three months ended June 30, 2013.

Total processed transactions, which represent transactions processed by VisaNet, for the three months ended June 30, 2013, were 15.0 billion, a 14% increase over the prior year.

Fiscal third quarter 2013 service revenues were $1.3 billion, an increase of 7% versus the prior year, and are recognized based on payments volume in the prior quarter. All other revenue categories are recognized based on current quarter activity. Data processing revenues rose 15% over the prior year to $1.2 billion. International transaction revenues, which are driven by cross-border activity, grew 14% over the prior year to $854 million. Other revenues, which include the Visa Europe licensing fee, were $179 million, a 1% increase over the prior year. Client incentives, which are a contra revenue item, were $521 million and represent 15% of gross revenues.

Total operating expenses were $1.2 billion for the quarter, a 9% increase over the prior year adjusted results, mainly due to personnel, network and processing fees, and depreciation and amortization associated with investments in technology projects to support our global growth initiatives.

The effective tax rate was 33.2% for the quarter ended June 30, 2013.

Cash, cash equivalents, and available-for-sale investment securities were $6.5 billion at June 30, 2013.

The weighted-average number of diluted class A common stock outstanding was 651 million for the quarter ended June 30, 2013.

 

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Notable Events:

During the three months ended June 30, 2013, the Company repurchased 6 million shares of class A common stock, at an average price of $176.75 per share, using $981 million of cash on hand. At June 30, 2013, the Company had $61 million of remaining funds, authorized by the Board of Directors, available for share repurchase under the current program. In addition, the Board of Directors has authorized a new $1.5 billion class A share repurchase program. The authorization will be in place through July 2014, and is subject to further changes at the discretion of the Board.

As announced on July 16, 2013, the Board of Directors declared a quarterly dividend in the aggregate amount of $0.33 per share of class A common stock (determined in the case of class B and class C common stock on an as-converted basis) payable on September 4, 2013, to all holders of record of the Company’s class A, class B and class C common stock as of August 16, 2013.

Financial Outlook:

Visa Inc. updates its financial outlook for the following metrics for fiscal 2013:

 

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Annual net revenue growth: Around 13%; and

 

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Adjusted annual diluted class A common stock earnings per share growth: Low twenties.

Visa Inc. affirms its financial outlook for the following metrics for fiscal 2013:

 

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Client incentives as a percent of gross revenues: 16% to 17% range;

 

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Marketing expenses: Under $1 billion;

 

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Annual operating margin: About 60%;

 

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Tax rate: 30% to 32% range;

 

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Capital expenditures: $425 million to $475 million range; and

 

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Annual free cash flow: About $6 billion.

Visa Inc. affirms its financial outlook for the following metrics for fiscal 2014:

 

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Annual net revenue growth: Low double digits;

 

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Adjusted annual diluted class A common stock earnings per share growth: Mid to high teens; and

 

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Annual free cash flow: About $5 billion.

 

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Fiscal Third Quarter 2013 Earnings Results Conference Call Details:

Visa’s executive management team will host a live audio webcast beginning at 5:00 p.m. Eastern Time (2:00 p.m. Pacific Time) today to discuss the financial results and business highlights. All interested parties are invited to listen to the live webcast at http://investor.visa.com. A replay of the webcast will be available on the Visa Investor Relations website for 30 days. Investor information, including supplemental financial information, is available on Visa Inc.’s Investor Relations website at http://investor.visa.com.

About Visa

Visa is a global payments technology company that connects consumers, businesses, financial institutions, and governments in more than 200 countries and territories to fast, secure and reliable electronic payments. We operate one of the world’s most advanced processing networks-VisaNet-that is capable of handling more than 30,000 transaction messages a second, with fraud protection for consumers and assured payment for merchants. Visa is not a bank and does not issue cards, extend credit or set rates and fees for consumers. Visa’s innovations, however, enable its financial institution customers to offer consumers more choices: pay now with debit, ahead of time with prepaid or later with credit products. For more information, visit corporate.visa.com.

Forward-Looking Statements:

This press release contains forward-looking statements within the meaning of the U.S. Private Securities Litigation Reform Act of 1995. These statements can be identified by the terms “outlook,” “will,” “continued,” and similar references to the future. Examples of such forward-looking statements include, but are not limited to, statements we make about our revenue, earnings per share, incentive payments, expenses, operating margin, tax rate, capital expenditures, free cash flow, and the growth of those items.

By their nature, forward-looking statements: (i) speak only as of the date they are made, (ii) are neither statements of historical fact nor guarantees of future performance and (iii) are subject to risks, uncertainties, assumptions and changes in circumstances that are difficult to predict or quantify. Therefore, actual results could differ materially and adversely from those forward-looking statements because of a variety of factors, including the following:

 

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the impact of laws, regulations and marketplace barriers, including:

 

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rules capping debit interchange reimbursement fees promulgated under the U.S. Wall Street Reform and Consumer Protection Act, or the Dodd-Frank Act;

 

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rules under the Dodd-Frank Act expanding issuers’ and merchants’ choice among debit payment networks;

 

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increased regulation outside the United States and in other product categories;

 

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increased government support of national payment networks outside the United States; and

 

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rules about consumer privacy and data use and security;

 

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developments in litigation and government enforcement, including:

 

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those affecting interchange reimbursement fees, antitrust and tax disputes; and

 

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our failure to satisfy the conditions necessary to make the multidistrict litigation settlement effective;

 

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economic factors, such as:

 

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an increase or spread of the current European crisis involving sovereign debt and the euro;

 

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failure to resolve the current sequestration in the United States;

 

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cross-border activity and currency exchange rates;

 

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material changes in our clients’ performance compared to our estimates; and

 

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other global economic, political and health conditions;

 

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industry developments, such as competitive pressure, rapid technological developments, and disintermediation from the payments value stream;

 

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system developments, such as:

 

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disruption of our transaction processing systems or the inability to process transactions efficiently;

 

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account data compromises or increased fraudulent or other illegal activities involving our cards; and

 

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issues arising at Visa Europe, including failure to maintain interoperability between our systems;

 

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costs and liquidity needs arising if Visa Europe were to exercise its right to require us to acquire all of its outstanding stock;

 

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loss of organizational effectiveness or key employees;

 

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failure to integrate acquisitions successfully or to effectively launch new products and businesses; and

the other factors discussed under the heading “Risk Factors” in our most recent Annual Report on Form 10-K on file with the U.S. Securities and Exchange Commission. You should not place undue reliance on such statements. Unless required to do so by law, we do not intend to update or revise any forward–looking statement, because of new information or future developments or otherwise.

Contacts:

Investor Relations: Jack Carsky or Victoria Hyde-Dunn, 650-432-7644, ir@visa.com

Media Relations: Paul Cohen or Erika White, 650-432-2990, globalmedia@visa.com

 

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VISA INC.

CONSOLIDATED BALANCE SHEETS

(UNAUDITED)

 

		June 30, 2013				September 30, 2012
		(in millions, except par value data)
Assets
Cash and cash equivalents		$	1,453			$	2,074
Restricted cash - litigation escrow			49				4,432
Investment securities
Trading			73				66
Available-for-sale			1,822				677
Income tax receivable			600				179
Settlement receivable			459				454
Accounts receivable			779				723
Customer collateral			817				823
Current portion of client incentives			240				209
Deferred tax assets			429				2,027
Prepaid expenses and other current assets			220				122
Total current assets			6,941				11,786
Investment securities, available-for-sale			3,189				3,283
Client incentives			85				58
Property, equipment and technology, net			1,689				1,634
Other assets			332				151
Intangible assets, net			11,368				11,420
Goodwill			11,681				11,681
Total assets		$	35,285			$	40,013
Liabilities
Accounts payable		$	131			$	152
Settlement payable			817				719
Customer collateral			817				823
Accrued compensation and benefits			444				460
Client incentives			829				830
Accrued liabilities			628				584
Accrued litigation			5				4,386
Total current liabilities			3,671				7,954
Deferred tax liabilities			4,043				4,058
Other liabilities			568				371
Total liabilities			8,282				12,383
Equity
Preferred stock, $0.0001 par value, 25 shares authorized and none issued			—				—
Class A common stock, $0.0001 par value, 2,001,622 shares authorized, 515 and 535 shares issued and outstanding at June 30, 2013, and September 30, 2012, respectively			—				—
Class B common stock, $0.0001 par value, 622 shares authorized, 245 shares issued and outstanding at June 30, 2013, and September 30, 2012			—				—
Class C common stock, $0.0001 par value, 1,097 shares authorized, 27 and 31 shares issued and outstanding at June 30, 2013, and September 30, 2012, respectively			—				—
Additional paid-in capital			19,130				19,992
Accumulated income			7,989				7,809
Accumulated other comprehensive income (loss), net
Investment securities, available-for-sale			26				3
Defined benefit pension and other postretirement plans			(181	)			(186	)
Derivative instruments classified as cash flow hedges			40				13
Foreign currency translation adjustments			(1	)			(1	)
Total accumulated other comprehensive loss, net			(116	)			(171	)
Total equity			27,003				27,630
Total liabilities and equity		$	35,285			$	40,013

 

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VISA INC.

CONSOLIDATED STATEMENTS OF OPERATIONS

(UNAUDITED)

 

		Three Months Ended June 30,								Nine Months Ended June 30,
		2013				2012				2013				2012
		(in millions, except per share data)
Operating Revenues
Service revenues		$	1,298			$	1,216			$	3,967			$	3,608
Data processing revenues			1,191				1,040				3,456				2,913
International transaction revenues			854				748				2,490				2,229
Other revenues			179				175				533				532
Client incentives			(521	)			(614	)			(1,641	)			(1,592	)
Total operating revenues			3,001				2,565				8,805				7,690
Operating Expenses
Personnel			493				435				1,433				1,255
Marketing			252				242				640				602
Network and processing			117				102				346				303
Professional fees			103				99				282				251
Depreciation and amortization			101				84				291				244
General and administrative			108				112				322				320
Litigation provision			(1	)			4,098				3				4,098
Total operating expenses			1,173				5,172				3,317				7,073
Operating income (loss)			1,828				(2,607	)			5,488				617
Non-operating income			5				—				3				2
Income (loss) before income taxes			1,833				(2,607	)			5,491				619
Income tax provision (benefit)			608				(768	)			1,703				139
Net income (loss) including non-controlling interest			1,225				(1,839	)			3,788				480
Loss attributable to non-controlling interest			—				—				—				2
Net income (loss) attributable to Visa Inc.		$	1,225			$	(1,839	)		$	3,788			$	482
Basic earnings (loss) per share
Class A common stock		$	1.89			$	(2.74	)		$	5.76			$	0.71
Class B common stock		$	0.79			$	(1.16	)		$	2.42			$	0.32
Class C common stock		$	1.89			$	(2.74	)		$	5.76			$	0.71
Basic weighted-average shares outstanding
Class A common stock			515				525				524				523
Class B common stock			245				245				245				245
Class C common stock			28				40				29				43
Diluted earnings (loss) per share
Class A common stock		$	1.88			$	(2.74	)		$	5.74			$	0.71
Class B common stock		$	0.79			$	(1.16	)		$	2.41			$	0.32
Class C common stock		$	1.88			$	(2.74	)		$	5.74			$	0.71
Diluted weighted-average shares outstanding
Class A common stock			651				672				660				681
Class B common stock			245				245				245				245
Class C common stock			28				40				29				43

 

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VISA INC.

CONSOLIDATED STATEMENTS OF CASH FLOWS

(UNAUDITED)

 

		Nine Months Ended June 30,
		2013				2012
		(in millions)
Operating Activities
Net income including non-controlling interest		$	3,788			$	480
Adjustments to reconcile net income including non-controlling interest to net cash provided by operating activities:
Amortization of client incentives			1,641				1,592
Share-based compensation			139				112
Excess tax benefit for share-based compensation			(64	)			(42	)
Depreciation and amortization of property, equipment, technology and intangible assets			291				244
Deferred income taxes			1,562				(1,427	)
Litigation provision and accretion			3				4,099
Other			39				(34	)
Change in operating assets and liabilities:
Income tax receivable			(421	)			(41	)
Settlement receivable			(5	)			(31	)
Accounts receivable			(56	)			(231	)
Client incentives			(1,700	)			(1,315	)
Other assets			(310	)			—
Accounts payable			5				(58	)
Settlement payable			98				298
Accrued and other liabilities			351				134
Accrued litigation			(4,384	)			(140	)
Net cash provided by operating activities			977				3,640
Investing Activities
Purchases of property, equipment, technology and intangible assets			(333	)			(270	)
Proceeds from disposal of property, equipment and technology			—				2
Investment securities, available-for-sale:
Purchases			(2,789	)			(3,326	)
Proceeds from sales and maturities			1,767				1,640
Net distributions from other investments			1				14
Acquisitions, net of cash received			—				(3	)
Net cash used in investing activities			(1,354	)			(1,943	)
Financing Activities
Repurchase of class A common stock			(4,054	)			(536	)
Dividends paid			(653	)			(448	)
Deposits into litigation escrow account—retrospective responsibility plan			—				(1,565	)
Payments from litigation escrow account—retrospective responsibility plan			4,383				140
Cash proceeds from exercise of stock options			98				111
Restricted stock and performance shares settled in cash for taxes			(64	)			—
Excess tax benefit for share-based compensation			64				42
Payment for earn-out related to PlaySpan acquisition			(12	)			—
Principal payments on capital lease obligations			(6	)			(6	)
Net cash used in financing activities			(244	)			(2,262	)
Effect of exchange rate changes on cash and cash equivalents			—				(4	)
Decrease in cash and cash equivalents			(621	)			(569	)
Cash and cash equivalents at beginning of year			2,074				2,127
Cash and cash equivalents at end of period		$	1,453			$	1,558
Supplemental Disclosure of Cash Flow Information
Income taxes paid, net of refunds		$	478			$	1,575
Amounts included in accounts payable and accrued and other liabilities related to purchases of property, equipment, technology and intangible assets		$	27			$	85

 

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VISA INC.

FISCAL 2013 AND 2012 QUARTERLY RESULTS OF OPERATIONS

(UNAUDITED)

 

		Fiscal 2013 Quarter Ended												Fiscal 2012 Quarter Ended
		June 30, 2013				March 31, 2013				December 31, 2012				September 30, 2012				June 30, 2012
		(in millions)
Operating Revenues
Service revenues		$	1,298			$	1,369			$	1,300			$	1,264			$	1,216
Data processing revenues			1,191				1,150				1,115				1,062				1,040
International transaction revenues			854				831				805				796				748
Other revenues			179				175				179				172				175
Client incentives			(521	)			(567	)			(553	)			(563	)			(614	)
Total operating revenues			3,001				2,958				2,846				2,731				2,565
Operating Expenses
Personnel			493				486				454				471				435
Marketing			252				195				193				271				242
Network and processing			117				119				110				111				102
Professional fees			103				91				88				134				99
Depreciation and amortization			101				98				92				89				84
General and administrative			108				108				106				131				112
Litigation provision			(1	)			1				3				2				4,098
Total operating expenses			1,173				1,098				1,046				1,209				5,172
Operating income (loss)			1,828				1,860				1,800				1,522				(2,607	)
Non-operating income (expense)			5				(3	)			1				66				—
Income (loss) before income taxes			1,833				1,857				1,801				1,588				(2,607	)
Income tax provision (benefit)			608				587				508				(74	)			(768	)
Net income (loss) attributable to Visa Inc.		$	1,225			$	1,270			$	1,293			$	1,662			$	(1,839	)

 

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VISA INC.

Reconciliation of Non-GAAP Financial Results

US$ in millions, except percentages and per share data

Our reported financial results for the three months ended June 30, 2012 included a litigation provision of $4.1 billion and related tax benefits associated with the interchange MDL, which is covered by the retrospective responsibility plan. We believe the presentation of adjusted financial results excluding the litigation provision adjustment provides a clearer understanding of our operating performance in that period. The following table presents our financial results for the three months ended June 30, 2013, as compared to our adjusted financial results for the three months ended June 30, 2012.

 

		Three Months Ended June 30,
		Operating expenses								Operating  margin(1)								Net income (loss) attributable to Visa Inc.								Diluted earnings (loss) per share(2)
		2013				2012				2013				2012				2013				2012				2013				2012
As reported		$	1,173			$	5,172				61	%			(102	)%		$	1,225			$	(1,839	)		$	1.88			$	(2.74	)
Litigation provision			—				(4,098	)			—				NM				—				2,894	(3)			—				4.30
Adjusted		$	1,173			$	1,074				61	%			58	%		$	1,225			$	1,055			$	1.88			$	1.56
Weighted-average number of diluted shares outstanding(4)																											651				675

 

(1)	Operating margin is calculated as operating income (loss) divided by total operating revenues.

(2)	Figures in the table may not recalculate exactly due to rounding. Diluted earnings (loss) per share is calculated based on whole numbers, not the rounded numbers presented.

(3)	The litigation provision adjustment to net income (loss) attributable to Visa Inc. is shown net of tax. The tax impact is determined by applying applicable federal and state tax rates to the litigation provision and applying any reserves for uncertain tax positions.

(4)	For the three months ended June 30, 2012, the computation of adjusted diluted earnings per share included the effect of 3 million incremental dilutive shares, which were excluded from the computation of reported diluted loss per share as they are considered anti-dilutive when applied to a net loss.

 

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Operational Performance Data

The tables below provide information regarding the available operational results for the 3 months ended June 30, 2013, as well as the prior four quarterly reporting periods and the 12 months ended June 30, 2013 and 2012, for cards carrying the Visa, Visa Electron and Interlink brands. Also included is a table with information on the number of billable transactions processed on Visa Inc.’s CyberSource network.

1. Branded Volume and Transactions

The tables present total volume, payments volume, and cash volume, and the number of payments transactions, cash transactions, accounts and cards for cards carrying the Visa, Visa Electron and Interlink brands. Card counts include PLUS proprietary cards. Nominal and constant dollar growth rates over prior years are provided for volume-based data.

 

		For the 3 Months Ended June 30, 2013
		Total Volume ($ billions)				Growth (Nominal USD)				Growth (Constant USD)				Payments Volume ($ billions)				Growth (Nominal USD)				Growth (Constant USD)				Payments Transactions (millions)				Cash Volume ($ billions)				Growth (Nominal USD)				Growth (Constant USD)				Cash Transactions (millions)
All Visa Credit & Debit
Asia Pacific		$	456				10.5	%			13.1	%		$	304				9.7	%			13.7	%			3,337			$	152				12.3	%			12.1	%			816
Canada			65				5.4	%			6.0	%			59				5.7	%			6.3	%			566				5				2.4	%			3.0	%			11
CEMEA			264				12.8	%			15.1	%			56				24.8	%			28.4	%			1,045				208				10.0	%			12.0	%			1,146
LAC			270				9.9	%			13.0	%			101				14.4	%			19.2	%			2,304				169				7.4	%			9.5	%			974
US			683				10.3	%			10.3	%			570				11.3	%			11.3	%			11,207				113				5.8	%			5.8	%			892
Visa Inc.			1,737				10.5	%			12.0	%			1,090				11.4	%			13.1	%			18,459				647				9.0	%			10.2	%			3,840
Visa Credit Programs
US		$	282				10.1	%			10.1	%		$	270				10.0	%			10.0	%			3,185			$	12				12.1	%			12.1	%			15
Rest of World			463				8.5	%			12.1	%			412				9.0	%			13.0	%			4,902				51				4.3	%			5.5	%			199
Visa Inc.			745				9.1	%			11.4	%			682				9.4	%			11.8	%			8,087				63				5.7	%			6.7	%			214
Visa Debit Programs
US		$	401				10.5	%			10.5	%		$	300				12.4	%			12.4	%			8,022			$	101				5.1	%			5.1	%			877
Rest of World			591				12.3	%			13.9	%			108				22.2	%			24.4	%			2,350				484				10.3	%			11.8	%			2,749
Visa Inc.			992				11.6	%			12.5	%			408				14.9	%			15.4	%			10,372				585				9.4	%			10.6	%			3,626
		For the 3 Months Ended March 31, 2013
		Total Volume ($ billions)				Growth (Nominal USD)				Growth (Constant USD)				Payments Volume ($ billions)				Growth (Nominal USD)				Growth (Constant USD)				Payments Transactions (millions)				Cash Volume ($ billions)				Growth (Nominal USD)				Growth (Constant USD)				Cash Transactions (millions)				Accounts (millions)				Cards (millions)
All Visa Credit & Debit
Asia Pacific		$	449				10.1	%			12.2	%		$	295				9.9	%			12.8	%			3,116			$	154				10.6	%			11.2	%			755				581				682
Canada			56				0.3	%			0.5	%			51				1.3	%			1.5	%			489				5				-9.5	%			-9.3	%			10				29				38
CEMEA			242				14.7	%			16.8	%			50				24.8	%			28.4	%			932				192				12.3	%			14.1	%			1,070				278				277
LAC			261				5.0	%			12.8	%			98				8.7	%			18.4	%			2,225				164				2.9	%			9.7	%			926				402				431
US			637				3.5	%			3.5	%			530				4.3	%			4.3	%			10,355				108				-0.1	%			-0.1	%			831				541				706
Visa Inc.			1,646				6.9	%			9.0	%			1,025				7.0	%			8.7	%			17,117				621				6.8	%			9.4	%			3,592				1,831				2,134
Visa Credit Programs
US		$	255				9.2	%			9.2	%		$	244				9.1	%			9.1	%			2,842			$	12				12.8	%			12.8	%			15				206				278
Rest of World			440				7.1	%			10.4	%			393				7.8	%			11.5	%			4,567				48				2.0	%			2.5	%			181				462				522
Visa Inc.			696				7.9	%			10.0	%			637				8.2	%			10.5	%			7,409				59				4.0	%			4.4	%			196				668				801
Visa Debit Programs
US		$	382				0.0	%			0.0	%		$	286				0.6	%			0.6	%			7,513			$	96				-1.5	%			-1.5	%			817				336				428
Rest of World			568				10.9	%			14.5	%			102				19.8	%			24.4	%			2,195				466				9.1	%			12.6	%			2,580				828				906
Visa Inc.			950				6.3	%			8.2	%			388				5.0	%			5.9	%			9,708				562				7.1	%			9.9	%			3,396				1,164				1,333

 

11

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Operational Performance Data

 

 

		For the 3 Months Ended December 31, 2012
		Total Volume ($ billions)				Growth (Nominal USD)				Growth (Constant USD)				Payments Volume ($ billions)				Growth (Nominal USD)				Growth (Constant USD)				Payments Transactions (millions)				Cash Volume ($ billions)				Growth (Nominal USD)				Growth (Constant USD)				Cash Transactions (millions)				Accounts (millions)				Cards (millions)
All Visa Credit & Debit
Asia Pacific		$	459				12.1	%			11.7	%		$	313				13.5	%			12.6	%			3,264			$	145				9.2	%			9.7	%			755				570				670
Canada			67				10.4	%			6.6	%			62				11.1	%			7.3	%			561				5				2.1	%			-1.4	%			11				28				38
CEMEA			261				18.3	%			19.8	%			51				29.8	%			32.3	%			917				211				15.8	%			17.1	%			1,148				273				272
LAC			281				6.9	%			15.2	%			103				10.7	%			20.7	%			2,355				178				4.8	%			12.2	%			1,014				402				431
US			653				2.8	%			2.8	%			545				3.0	%			3.0	%			10,641				108				2.1	%			2.1	%			860				535				700
Visa Inc.			1,720				8.3	%			9.6	%			1,074				8.1	%			8.6	%			17,738				647				8.7	%			11.2	%			3,787				1,808				2,111
Visa Credit Programs
US		$	274				10.5	%			10.5	%		$	262				10.8	%			10.8	%			3,131			$	12				4.2	%			4.2	%			16				204				277
Rest of World			477				10.8	%			11.0	%			424				12.0	%			12.4	%			4,843				52				2.3	%			0.9	%			196				460				518
Visa Inc.			751				10.7	%			10.8	%			687				11.5	%			11.8	%			7,974				64				2.6	%			1.5	%			212				663				795
Visa Debit Programs
US		$	379				-2.1	%			-2.1	%		$	282				-3.4	%			-3.4	%			7,510			$	97				1.9	%			1.9	%			845				331				423
Rest of World			590				12.9	%			16.8	%			105				22.9	%			27.2	%			2,254				486				11.0	%			14.7	%			2,731				813				893
Visa Inc.			969				6.5	%			8.6	%			387				2.6	%			3.4	%			9,764				582				9.4	%			12.4	%			3,575				1,145				1,316
		For the 3 Months Ended September 30, 2012
		Total Volume ($ billions)				Growth (Nominal USD)				Growth (Constant USD)				Payments Volume ($ billions)				Growth (Nominal USD)				Growth (Constant USD)				Payments Transactions (millions)				Cash Volume ($ billions)				Growth (Nominal USD)				Growth (Constant USD)				Cash Transactions (millions)				Accounts (millions)				Cards (millions)
All Visa Credit & Debit
Asia Pacific		$	429				6.7	%			9.2	%		$	290				6.5	%			8.2	%			3,115			$	139				7.3	%			11.5	%			693				558				659
Canada			62				2.3	%			3.7	%			57				2.8	%			4.3	%			528				5				-3.7	%			-2.3	%			11				27				35
CEMEA			238				11.9	%			18.9	%			47				27.0	%			35.6	%			805				191				8.8	%			15.4	%			1,070				264				265
LAC			254				1.9	%			16.5	%			92				3.5	%			19.8	%			2,165				161				0.9	%			14.7	%			941				395				424
US			631				0.9	%			0.9	%			522				0.9	%			0.9	%			10,340				110				0.6	%			0.6	%			886				522				683
Visa Inc.			1,614				4.1	%			7.9	%			1,008				3.8	%			5.9	%			16,952				606				4.6	%			11.2	%			3,601				1,765				2,066
Visa Credit Programs
US		$	261				8.2	%			8.2	%		$	250				9.2	%			9.2	%			2,977			$	11				-9.9	%			-9.9	%			16				200				273
Rest of World			441				4.9	%			8.9	%			392				6.2	%			10.1	%			4,593				49				-3.9	%			0.1	%			190				455				515
Visa Inc.			703				6.1	%			8.6	%			642				7.3	%			9.8	%			7,570				61				-5.1	%			-2.0	%			205				656				788
Visa Debit Programs
US		$	370				-3.8	%			-3.8	%		$	272				-5.7	%			-5.7	%			7,363			$	98				2.0	%			2.0	%			870				322				410
Rest of World			541				7.5	%			16.4	%			95				11.4	%			20.2	%			2,019				447				6.7	%			15.6	%			2,525				788				868
Visa Inc.			911				2.6	%			7.3	%			366				-1.8	%			-0.1	%			9,382				545				5.8	%			12.9	%			3,396				1,109				1,278
		For the 3 Months Ended June 30, 2012
		Total Volume ($ billions)				Growth (Nominal USD)				Growth (Constant USD)				Payments Volume ($ billions)				Growth (Nominal USD)				Growth (Constant USD)				Payments Transactions (millions)				Cash Volume ($ billions)				Growth (Nominal USD)				Growth (Constant USD)				Cash Transactions (millions)				Accounts (millions)				Cards (millions)
All Visa Credit & Debit
Asia Pacific		$	413				8.8	%			11.2	%		$	277				11.5	%			13.3	%			3,001			$	136				3.6	%			7.2	%			651				537				645
Canada			61				1.8	%			6.3	%			56				1.9	%			6.4	%			513				5				0.8	%			5.2	%			11				25				33
CEMEA			234				14.4	%			23.5	%			45				28.4	%			39.6	%			751				189				11.5	%			20.3	%			1,088				256				258
LAC			245				0.4	%			15.7	%			88				3.2	%			19.7	%			2,055				157				-1.0	%			13.6	%			967				385				415
US			619				-0.6	%			-0.6	%			513				-1.1	%			-1.1	%			10,020				107				1.5	%			1.5	%			861				511				666
Visa Inc.			1,572				4.0	%			8.1	%			978				3.9	%			6.1	%			16,340				594				4.3	%			11.5	%			3,578				1,714				2,016
Visa Credit Programs
US		$	256				9.3	%			9.3	%		$	246				9.7	%			9.7	%			2,880			$	11				0.1	%			0.1	%			15				196				265
Rest of World			426				6.7	%			11.1	%			378				8.5	%			13.0	%			4,437				49				-5.6	%			-1.0	%			192				451				511
Visa Inc.			683				7.6	%			10.4	%			623				9.0	%			11.6	%			7,317				59				-4.6	%			-0.8	%			207				647				776
Visa Debit Programs
US		$	363				-6.6	%			-6.6	%		$	267				-9.2	%			-9.2	%			7,140			$	96				1.7	%			1.7	%			846				315				401
Rest of World			526				7.8	%			17.9	%			88				16.9	%			28.3	%			1,883				438				6.2	%			16.0	%			2,525				752				839
Visa Inc.			890				1.4	%			6.4	%			355				-3.9	%			-2.3	%			9,023				535				5.3	%			13.1	%			3,371				1,066				1,240

 

12

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Operational Performance Data

 

 

		For the 12 Months Ended June 30, 2013
		Total Volume ($ billions)				Growth (Nominal USD)				Growth (Constant USD)				Payments Volume ($ billions)				Growth (Nominal USD)				Growth (Constant USD)				Payments Transactions (millions)				Cash Volume ($ billions)				Growth (Nominal USD)				Growth (Constant USD)				Cash Transactions (millions)
All Visa Credit & Debit
Asia Pacific		$	1,793				9.9	%			11.6	%		$	1,202				9.9	%			11.8	%			12,833			$	591				9.9	%			11.1	%			3,018
Canada			249				4.7	%			4.3	%			230				5.3	%			4.9	%			2,144				20				-2.2	%			-2.5	%			43
CEMEA			1,005				14.4	%			17.6	%			204				26.5	%			31.0	%			3,699				801				11.7	%			14.6	%			4,434
LAC			1,065				5.9	%			14.3	%			394				9.3	%			19.5	%			9,048				671				4.0	%			11.5	%			3,856
US			2,605				4.4	%			4.4	%			2,166				4.8	%			4.8	%			42,543				438				2.1	%			2.1	%			3,470
Visa Inc.			6,717				7.5	%			9.6	%			4,196				7.6	%			9.1	%			70,266				2,521				7.3	%			10.5	%			14,820
Visa Credit Programs
US		$	1,073				9.5	%			9.5	%		$	1,026				9.8	%			9.8	%			12,135			$	47				4.1	%			4.1	%			61
Rest of World			1,821				7.9	%			10.6	%			1,621				8.8	%			11.8	%			18,905				200				1.1	%			2.2	%			766
Visa Inc.			2,894				8.5	%			10.2	%			2,647				9.2	%			11.0	%			31,040				247				1.7	%			2.5	%			827
Visa Debit Programs
US		$	1,532				1.0	%			1.0	%		$	1,140				0.8	%			0.8	%			30,407			$	392				1.9	%			1.9	%			3,408
Rest of World			2,291				10.9	%			15.4	%			409				19.1	%			24.1	%			8,818				1,882				9.3	%			13.6	%			10,585
Visa Inc.			3,823				6.7	%			9.2	%			1,549				5.0	%			6.0	%			39,226				2,274				7.9	%			11.4	%			13,993
		For the 12 Months Ended June 30, 2012
		Total Volume ($ billions)				Growth (Nominal USD)				Growth (Constant USD)				Payments Volume ($ billions)				Growth (Nominal USD)				Growth (Constant USD)				Payments Transactions (millions)				Cash Volume ($ billions)				Growth (Nominal USD)				Growth (Constant USD)				Cash Transactions (millions)				Accounts (millions)				Cards (millions)
All Visa Credit & Debit
Asia Pacific		$	1,632				15.0	%			12.6	%		$	1,094				17.5	%			14.2	%			11,712			$	537				10.2	%			9.5	%			2,534				537				645
Canada			238				6.6	%			7.0	%			218				6.9	%			7.3	%			1,964				20				4.2	%			4.6	%			42				25				33
CEMEA			878				20.4	%			24.9	%			161				32.1	%			38.3	%			2,628				717				18.0	%			22.3	%			4,167				256				258
LAC			1,006				11.5	%			17.3	%			360				15.5	%			21.8	%			8,045				645				9.5	%			14.9	%			3,832				385				415
US			2,496				5.6	%			5.6	%			2,066				5.3	%			5.3	%			41,241				430				7.0	%			7.0	%			3,525				511				666
Visa Inc.			6,250				10.9	%			11.6	%			3,900				10.4	%			10.2	%			65,590				2,350				11.6	%			14.0	%			14,100				1,714				2,016
Visa Credit Programs
US		$	979				10.4	%			10.4	%		$	934				10.4	%			10.4	%			10,953			$	45				10.3	%			10.3	%			62				196				265
Rest of World			1,689				13.8	%			12.8	%			1,490				15.1	%			13.9	%			17,251				198				5.1	%			5.5	%			745				451				511
Visa Inc.			2,668				12.6	%			11.9	%			2,425				13.3	%			12.5	%			28,204				243				6.1	%			6.4	%			807				647				776
Visa Debit Programs
US		$	1,516				2.7	%			2.7	%		$	1,132				1.5	%			1.5	%			30,288			$	385				6.6	%			6.6	%			3,463				315				401
Rest of World			2,065				15.4	%			18.9	%			343				25.0	%			28.8	%			7,098				1,722				13.6	%			17.1	%			9,830				752				839
Visa Inc.			3,582				9.6	%			11.3	%			1,475				6.1	%			6.6	%			37,386				2,107				12.2	%			15.0	%			13,293				1,066				1,240

 

13

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Operational Performance Data

 

 

Footnote

The preceding tables present regional total volume, payments volume and cash volume, and the number of payments transactions, cash transactions, accounts and cards for cards carrying the Visa, Visa Electron and Interlink brands. Card counts include PLUS proprietary cards. Nominal and constant dollar growth rates over prior years are provided for volume-based data.

Payments volume represents the aggregate dollar amount of purchases made with cards carrying the Visa, Visa Electron and Interlink brands for the relevant period; and cash volume represents the aggregate dollar amount of cash disbursements obtained with these cards for the relevant period and includes the impact of balance transfers and convenience checks; but excludes proprietary PLUS volume. Total volume represents payments volume plus cash volume.

Visa payment products are comprised of credit and debit programs, and data relating to each program is included in the tables. Debit programs include Visa’s signature based and Interlink (PIN) debit programs.

The data presented is based on results reported quarterly by Visa’s financial institution clients on their operating certificates. Estimates may be utilized if data is unavailable. On occasion, previously presented information may be updated.

Visa’s CEMEA region is comprised of countries in Central Europe, the Middle East and Africa. Several European Union countries in Central Europe, Israel and Turkey are not included in CEMEA. LAC is comprised of countries in Central and South America and the Caribbean. Rest of World includes Asia Pacific, Canada, CEMEA and LAC.

Information denominated in U.S. dollars is calculated by applying an established U.S. dollar/local currency exchange rate for each local currency in which Visa Inc. volumes are reported (“Nominal USD”). These exchange rates are calculated on a quarterly basis using the established exchange rate for each quarter. To eliminate the impact of foreign currency fluctuations against the U.S. dollar in measuring performance, Visa Inc. also reports year-over-year growth in total volume, payments volume and cash volume on the basis of local currency information (“Constant USD”). This presentation represents Visa’s historical methodology which may be subject to review and refinement.

 

14

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Operational Performance Data

 

 

2. Cross Border Volume

The table below represents cross border volume growth for cards carrying the Visa, Visa Electron, Interlink and PLUS brands. Cross border volume refers to payments and cash volume where the issuing country is different from the merchant country.

 

Period		Growth (Nominal USD)				Growth (Constant USD)
3 Months Ended
Jun 30, 2013			11	%			11	%
Mar 31, 2013			10	%			10	%
Dec 31, 2012			11	%			11	%
Sep 30, 2012			7	%			10	%
Jun 30, 2012			10	%			14	%
12 Months Ended
Jun 30, 2013			9	%			11	%
Jun 30, 2012			14	%			15	%

3. Visa Processed Transactions

The table below represents transactions involving Visa, Visa Electron, Interlink and PLUS cards processed on Visa’s networks. CyberSource transactions are not included in this table, and are reported in the next section.

 

Period		Processed Transactions (millions)				Growth
3 Months Ended
Jun 30, 2013			14,972				14	%
Mar 31, 2013			13,850				6	%
Dec 31, 2012			14,159				4	%
Sep 30, 2012			13,573				2	%
Jun 30, 2012			13,113				1	%
12 Months Ended
Jun 30, 2013			56,554				7	%
Jun 30, 2012			53,014				7	%

 

15

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Operational Performance Data

 

 

4. CyberSource Transactions

The table below represents billable transactions processed on Visa Inc.’s CyberSource network.

 

Period		Billable Transactions (millions)				Growth
3 Months Ended
Jun 30, 2013			1,648				27	%
Mar 31, 2013			1,608				25	%
Dec 31, 2012			1,581				28	%
Sep 30, 2012			1,363				25	%
Jun 30, 2012			1,303				25	%
12 Months Ended
Jun 30, 2013			6,199				26	%
Jun 30, 2012			4,907				27	%

 

16