Attached files
| file | filename |
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| 8-K - FORM 8-K - VISA INC. | d858600d8k.htm |
| EX-99.1 - EX-99.1 - VISA INC. | d858600dex991.htm |
 Visa Inc.
Fiscal First Quarter 2015
Financial Results
January 29, 2015
Exhibit 99.2 |
 Fiscal First Quarter 2015 Financial Results
2
This presentation contains forward-looking statements within the meaning of the
U.S. Private Securities Litigation Reform Act of 1995. Forward-looking
statements generally are identified by words such as "estimates,"
"expectation," "will," "continued" and other similar expressions. Examples of forward-
looking statements include, but are not limited to, statements we make about our
revenue, client incentives, operating margin, tax rate, earnings per share,
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
not
statements
of
historical
fact
or
guarantees
of
future
performance; and (iii) are subject to risks, uncertainties, assumptions or changes
in circumstances that are difficult to predict or quantify. Therefore, actual
results could differ materially and adversely from our forward-looking
statements due to a variety of factors, including the following: rules
capping
debit
interchange
reimbursement
rates
and
expanding
financial
institutions’
and
merchants’
choices
among
debit
payments
networks
promulgated under the Dodd-Frank Wall Street Reform and Consumer Protection
Act; increased regulation in jurisdictions outside of the United States and
in other product categories; increased government support of national
payments networks outside the United States; and increased regulation of
consumer privacy, data use and security; economic fragility in the Eurozone
and in the United States; general stock market fluctuations, which may
impact consumer spending; material changes in cross-border activity,
foreign exchange controls and fluctuations in currency exchange rates;
volatility in market prices for oil and natural gas; and
material changes in our financial institution clients' performance compared to our
estimates; disruption of our transaction processing systems or the inability
to process transactions efficiently; account data breaches or increased
fraudulent or other illegal activities involving Visa-branded cards or payment products; and
failure to maintain systems interoperability with Visa Europe;
Forward-Looking Statements
various other factors, including those contained in our Annual Report on Form
10-K for the year ended September 30, 2014, and our other filings with
the U.S. Securities and Exchange Commission. You should not place undue reliance on such statements. Except as required by
law, we do not intend to update or revise any forward–looking statements as a
result of new information, future developments or otherwise. the impact of
laws, regulations and marketplace barriers, including: developments
in
litigation
and
government
enforcement,
including
those
affecting
interchange
reimbursement
fees,
antitrust
and
tax;
new lawsuits, investigations or proceedings, or changes to our potential exposure
in connection with pending lawsuits, investigations or proceedings; economic
factors, such as: industry developments, such as competitive pressure, rapid
technological developments and disintermediation from our payments network;
system developments, such as:
costs arising if Visa Europe were to exercise its right to require us to acquire
all of its outstanding stock; the loss of organizational effectiveness or
key employees; the failure to integrate acquisitions successfully or to
effectively develop new products and businesses; natural disasters, terrorist
attacks, military or political conflicts, and public health emergencies; and general economic,
political and social conditions in mature and emerging markets globally; |
 Fiscal First Quarter 2015 Financial Results
3
Solid Fiscal First Quarter Results
Solid operating revenues of $3.4 billion, up 7% over prior year
Repurchased 3.1 million shares of class A common stock in
the open market at an average price of $259.52 per share,
using $803 million of cash on hand
Continued positive secular trends and spending momentum
contributed to growth in key underlying business drivers
Quarterly net income of $1.6 billion and diluted earnings per
share of $2.53, up 11% and 15%, respectively, over prior year
|
 Fiscal First Quarter 2015 Financial Results
4
Quarter ended September
Payments Volume
US$ in billions, nominal, except percentages
YOY Change
(constant)
11%
12%
11%
YOY Change
(nominal)
11%
10%
10%
Note: Figures may not recalculate exactly due to rounding. Percentage changes are
calculated based on unrounded numbers. On occasion, previously submitted
volume information may be updated to reflect revised client submissions or other adjustments. Prior period updates are not
material. Constant dollar growth rates exclude the impact of foreign currency
fluctuations against the U.S. dollar in measuring performance. 1,104
1,217
697
771
407
446
INTL
=
International
2014
2013
Total Visa Inc.
Credit
Debit |
 Fiscal First Quarter 2015 Financial Results
5
Quarter ended December
Payments Volume
US$ in billions, nominal, except percentages
YOY Change
(constant)
11%
13%
9%
YOY Change
(nominal)
8%
6%
7%
Note: Current quarter payments volume and other select metrics are provided in the
operational performance data supplement in the press release to
provide more
recent
operating
data.
Service
revenues
continue
to
be
recognized
based
on
payments
volume
in
the
prior
quarter.
On
occasion,
reported payments volume information may be updated to reflect revised client
submissions or other adjustments. Prior period updates are not material.
Figures may not recalculate exactly due to rounding. Percentage changes are calculated based on unrounded numbers.
1,245
1,164
427
450
737
794
Total Visa Inc.
Credit
Debit
INTL
=
International
2013
2014 |
 Fiscal First Quarter 2015 Financial Results
6
Quarter ended December
Transactions
in millions, except percentages
Note: Processed transactions represent transactions involving Visa, Visa Electron,
Interlink and Plus cards processed on Visa’s networks. Total
transactions represent payments and cash transactions as reported by Visa clients
on their operating certificates. On occasion, previously submitted
transaction information may be updated to reflect revised client submissions or other adjustments. Prior period updates are not material.
Figures may not recalculate exactly due to rounding. Percentage changes are
calculated based on unrounded numbers. YOY
Change
10%
10%
23,653
25,975
15,985
17,599
2013
2014
Total Transactions
Processed Transactions |
 Fiscal First Quarter 2015 Financial Results
7
Quarter ended September
Total Cards
in millions, except percentages
Note: The data presented is based on results reported quarterly by Visa clients on
their operating certificates. Estimates may be utilized if data is
unavailable. On occasion, previously submitted card information may be updated to
reflect revised client submissions or other adjustments. Prior period
updates
are
not
material.
Figures
may
not
recalculate
exactly
due
to
rounding.
Percentage
changes
are
calculated
based
on
unrounded
numbers.
YOY
Change
6%
8%
7%
2013
2014
2,179
804
1,375
2,341
850
1,491
Visa Inc.
Credit
Debit |
 Fiscal First Quarter 2015 Financial Results
8
Revenue –
Q1 2015
US$ in millions, except percentages
Note: Figures may not recalculate exactly due to rounding. Percentages are
calculated based on unrounded numbers. YOY
Change
19%
7%
9%
Fiscal 2015 % of
Gross Revenues
17%
83%
3,754
(599)
3,155
4,095
(713)
3,382
Gross Revenues
Client
Incentives
Net Operating
Revenues
Fiscal 2014
Fiscal 2015 |
 Fiscal First Quarter 2015 Financial Results
9
Revenue Detail –
Q1 2015
US$ in millions, except percentages
Note: Figures may not recalculate exactly due to rounding. Percentage changes are
calculated based on unrounded numbers. YOY
Change
9%
9%
8%
14%
1,419
1,264
891
180
1,538
1,383
970
204
Service Revenues
Data Processing
Revenues
International
Transaction Revenues
Other Revenues
Fiscal 2014
Fiscal 2015 |
 Fiscal First Quarter 2015 Financial Results
10
Operating Margin –
Q1 2015
US$ in millions, except percentages
Note:
Operating
margin
is
calculated
as
operating
income
divided
by
net
operating
revenues.
Figures
may
not
recalculate
exactly
due
to
rounding.
Percentages are calculated based on unrounded numbers.
YOY
Change
6%
8%
7%
—
3,155
1,078
2,077
66%
3,382
1,144
2,238
66%
Net Operating
Revenues
Total Operating
Expenses
Operating
Income
Operating
Margin
Fiscal 2014
Fiscal 2015 |
 Fiscal First Quarter 2015 Financial Results
11
Operating Expenses –
Q1 2015
US$ in millions, except percentages
Note: Figures may not recalculate exactly due to rounding. Percentage changes are
calculated based on unrounded numbers. YOY
Change
(13%)
(6%)
8%
15%
12%
10%
470
186
132
75
107
108
509
205
114
70
120
126
Personnel
Marketing
Network &
Processing
Professional
Fees
Depreciation &
Amortization
General &
Administrative
Fiscal 2014
Fiscal 2015 |
 Fiscal First Quarter 2015 Financial Results
12
Other Financial Results
•
Cash, cash equivalents and available-for-sale investment securities of $7.5
billion at the end of the fiscal first quarter
•
Free cash flow of $1.9 billion for the fiscal first quarter
•
Capital expenditures of $104 million during the fiscal first quarter
•
Declared a four-for-one split of class A common stock on January 28, 2015.
Trading will begin on a split-adjusted basis on March 19, 2015.
|
 Fiscal First Quarter 2015 Financial Results
13
Financial Metrics for Fiscal Year 2015
Note: Fiscal full-year 2015 annual diluted earnings per share growth assumes an
adjusted basis for fiscal full-year 2014. Annual net revenue growth
Client incentives as % of
gross revenues
Annual operating margin
Tax rate
Annual diluted class A
common stock earnings per
share growth
Annual free cash flow
Constant dollar revenue growth of low double digits
Negative 2 ppts foreign currency impact
17.5% -
18.5% range
Mid 60s
Low 30s
Mid teens
Greater than $6 billion |
 Appendix |
 Fiscal First Quarter 2015 Financial Results
Calculation of Free Cash Flow
US$ in millions
(1)
The majority of estimated tax payments related to the fiscal first quarter are paid
in the fiscal second quarter. (2)
Includes changes in client incentives, trade receivable/payable, settlement
receivable/payable and personnel incentives. Additions (+) /
Reductions (-) to
Net income
Net income (as reported)
1,569
+
Depreciation and amortization
120
-
Capital expenditures
(104)
16
Litigation
+
Litigation provision
-
-
Settlement payments
(103)
+
Settlement payments funded by litigation escrow
100
(3)
Share-based Compensation
+
Share-based compensation
45
Pension
+
Pension expense
6
-
Pension contribution
(2)
4
Taxes
+
Income tax provision
693
-
Income
taxes
paid
(1)
(57)
636
Changes in Working Capital
+/-
Changes
in
other
working
capital
accounts
(2)
(407)
Total Free Cash Flow
1,860
Three Months Ended
December 31, 2014
Capital Assets
A-1 |