Attached files
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| 8-K - 8-K - Mastercard Inc | d595428d8k.htm |
| Exhibit 99.1
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Martina Hund-Mejean Chief Financial Officer September 11, 2013
Financial Perspective
2013 Investment Community Meeting
©2013 MasterCard. Proprietary and Confidential
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Topics for Today
Page 2
2013 Outlook
Investments for Growth Capital Planning Long-Term Outlook
MasterCard Investment Community Meeting ©2013 MasterCard. September 11, 2013
Proprietary and Confidential
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2013 YTD Business Drivers
Page 3
As Reported Processed
Growth Q1 Q2 Q2 Jul / Aug Trend Worldwide GDV 12% 13% 11% 13%
US GDV 4% 6% 7% 9%
Rest of World GDV 16% 17% 16% 17%
Processed Transactions 12% 11% 11% 14%
Cross Border Volume 16% 17% 17% 18%
MasterCard Investment Community Meeting ©2013 MasterCard. September 11, 2013
Proprietary and Confidential
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2013 Financial Outlook
Page 4
Net Revenue
2nd Half revenue growth similar to 1st Half of 12%
Operating Slightly below the 8% currency-adjusted 2012 growth Expense Some operating margin expansion
Tax Rate
Approximately 31%
FX Impact
Minimal net impact on Revenue, Net Income and EPS
Euro and Real
MasterCard Investment Community Meeting ©2013 MasterCard. September 11, 2013
Proprietary and Confidential
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Invested $1.9B for Growth 2011-2013F
Organic of $0.9B and $1.0B Through Acquisitions
Page 5
Delivering • Products
Sales and Marketing
Growth
Acceptance
Advisors
35%
Expansion/ • Loyalty and Rewards
Information Services Innovation Access Prepaid, DataCash
Digital (Mobile, MasterPass, Priceless Cities) 43% MasterCard Labs
Technology & • Processing
Infrastructure • Safety and Security
Information Technology
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M&A Considerations
Page 6
Strategic Fit Selection Criteria
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Address Strategic Priorities |
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Provide Critical Capabilities |
– Products / Services
– Technology
– Distribution
– Geographic Reach
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Financially Attractive |
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Acceptable Risk Profile |
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Manageable Integration |
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Management Strength, Talent, Culture |
MasterCard Investment Community Meeting ©2013 MasterCard. September 11, 2013
Proprietary and Confidential
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Capital Planning – Priorities
Page 7
Strong Preserve strong balance sheet, liquidity and Balance Sheet credit ratings
Long-Term Investments in organic opportunities and M&A
Business Growth
Return Excess Cash Continue to return excess cash with bias to Shareholders towards share repurchases
MasterCard Investment Community Meeting ©2013 MasterCard. September 11, 2013
Proprietary and Confidential
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Return of Capital – Historical Perspective
Page 8
Share Repurchase & Dividends
$2.5
Share Repurchase
$2.0 Dividends $1.9
$0.1
$1.4
$1.5 billions $1.2 $0.1
in $0.1
$ $1.0 $1.8 $1.3 $1.1
$0.5
$0.0 2011 2012 1H 2013
% of Period
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54% 97% 94% |
Cash Flow
* Period Cash Flow = Net change in cash and investments (current available-for-sale) before share repurchases and dividends
MasterCard Investment Community Meeting ©2013 MasterCard. September 11, 2013
Proprietary and Confidential
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Three Drivers of Growth
Page 9
Personal Consumption Expenditure
Cash & Check vs. Electronic Payments
MasterCard Share of Electronic Payments
MasterCard Investment Community Meeting ©2013 MasterCard. September 11, 2013
Proprietary and Confidential
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Long-Term Revenue Growth
Page 10
2011-2016E CAGR (in %)
Strategic Low-Mid Secular 9-11% (1%) Investments Teens
Growth
Adj. for 8-10% 4-6% Available Market
5%
Global Industry MA Market MasterCard PCE Purchase Volume Opportunity Long-Term Revenue
Source: EIU, Euromonitor and internal estimates
MasterCard Investment Community Meeting ©2013 MasterCard. September 11, 2013
Proprietary and Confidential
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Longer-Term
2013 – 2015 Performance Objectives*
Page 11
Net Revenue
11-14% CAGR
Growth
Operating
Minimum 50% annually
Margin
Earnings Per Share
At least 20% CAGR
Growth Rate
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On a constant currency basis and excluding future acquisitions |
MasterCard Investment Community Meeting ©2013 MasterCard. September 11, 2013
Proprietary and Confidential
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Forward-Looking Statements
Today’s presentation may contain, in addition to historical information, forward-looking statements within the meaning of the Private Securities
Litigation Reform Act of 1995.
These forward-looking statements are based on our current assumptions, expectations and projections about future events which reflect the best judgment of management and involve a number of risks and uncertainties that could cause actual results to differ materially from those suggested by our comments today. You should review and consider the information contained in our filings with the SEC regarding these risks and uncertainties.
MasterCard disclaims any obligation to publicly update or revise any forward-looking statements or information provided during today’s presentations.
Any non-GAAP information contained in today’s presentations is reconciled to its GAAP equivalent in the Company’s periodic SEC filings.