EX-99.2 3 dex992.htm PRESENTATION OF MASTERCARD INCORPORATED Presentation of MasterCard Incorporated
MasterCard
Incorporated
2
nd
Quarter
2006
Financial
Results
Conference
Call
August 2, 2006
Exhibit 99.2

2
2nd Quarter Financial Results
•
Completed initial public offering in late May
•
Made contributions to MasterCard Foundation
•
Delivered solid performance on a business-as-usual basis:
–
Earnings per share of $0.74, excluding special items
–
Loss per share of $2.30, including special items
•
Achieved strong revenue growth primarily due to higher gross dollar volume
and processed transactions, and restructured pricing
•
Achieved operating margin of 17.0% as-adjusted, in spite of:
–
Conversion of a large debit card portfolio
–
World Cup sponsorship and promotions expenses
•
Strengthened
already
solid
financial
position
-
$2.1
billion
of
cash,
cash
equivalents
and
available-for-sale
securities
at
quarter
end

3
2nd Quarter Selected Financial Performance
($ in Millions, except percentage and per share data)
17.0%
–
(32.4%)
Operating Margin
9.7%
–
9.7%
Revenue Growth
101
411
e
(310)
Net Income (Loss)
0.74
3.04
e
(2.30)
Basic and Diluted EPS
307
–
307
Advertising and Marketing
22
(7)
d
29
Investment Income
365
23
a
388
General Admin. and Litigation
144
418
(274)
Operating Income (Loss)
5
395
b
400
Charitable Contributions
$
846
–
$
846
Net Revenue
As
Adjusted
Special
Items
GAAP
Actual
a.
Litigation settlements
b.
Contribution of stock to the MasterCard
Foundation
c.
Contribution of cash to the MasterCard Foundation
d.   Interest Income on IPO proceeds held for redemption
e.   Net tax effect of all special items is negligible

4
MasterCard Branded Volume 
Second Quarter 2006
Note: columns may not add due to rounding
17.9
17.9
232
United States
16.4
16.7
485
Worldwide
10.1
10.4
70
Asia Pacific
13.8
25.9
19
Canada
49.4
47.9
7
SAMEA
26.9
28.7
29
Latin America
14.2
13.0
127
Europe
Local
Currency
U.S.
Dollar
Actual
($  Billions)
% Year-Over-Year Growth

5
2
nd
Quarter Revenue -
Assessments
($ in Millions)
$234
$283
$0
$50
$100
$150
$200
$250
$300
2Q05
2Q06
20%
30%
40%
50%
60%
70%
80%
Net Assessment Fees
Net Assessment Fees as a % of Gross Assessment Fees
•
Net assessments down $49 or
17.3% year-over-year
•
Gross assessments increased
$35 or 8.6%.  Key drivers
include:
–
GDV increases
–
Restructured pricing,
primarily
a $33
reclassification to
operations fees (offsets
gross assessments)
•
Net assessments as % of gross
assessments declined due to an
increase in incentives primarily
from:
–
Debit card portfolio
conversion
–
New and renewed
customer and merchant
agreements

6
2
nd
Quarter Revenue -
Operations Fees
($ in Millions)
•
Net operations fees up $123 or
25.2% year-over-year
•
Gross operations fees
increased $152 or 29.1%.  Key
drivers include increases in:
–
Processed transactions
–
Gross dollar volume
–
Restructured pricing,
including $33
reclassification from
assessments
•
Net operations fees as % of
gross operations fees declined
due to an increase in rebates
primarily from consolidation of
major customers and the impact
of restructured pricing
$612
$489
$0
$100
$200
$300
$400
$500
$600
$700
2Q05
2Q06
85%
88%
91%
94%
97%
100%
Net Operations Fees
Net Operations Fees as a % of Gross Operations Fees

7
$319
$365
$232
$307
$29
$25
$23
$400
$0
$100
$200
$300
$400
$500
2nd Quarter 2005
2nd Quarter 2006
General & Administrative
Advertising & Marketing
Depreciation & Amortization
Litigation Settlements
Charitable Contributions
2
nd
Quarter Operating Expenses
($ in Millions)
•
G&A up $46 or 14.4% year-
over-year primarily due to
increases in personnel to
support strategic initiatives
•
A&M increased $75 or
32.6% primarily due to the
2006 World Cup
•
Litigation settlements
represent increased
reserves for ongoing
litigation
•
Charitable contributions of
$395 in common shares
and $5 in cash to the
MasterCard Foundation

8
Balance Sheet/Cash Flow Statement
Highlights
•
Cash, cash equivalents and available-for-sale securities of $2.1 billion
•
Equity at $2.1 billion
•
Accounts receivable increased $63 million primarily due to a pricing
change
in Europe as well as volume increases
•
Accrued expenses decreased $96 million primarily due to the payment of
year-end personnel, advertising and incentive accruals
•
Obligations under the U.S. Merchant Lawsuit and other litigation
settlements increased $44 million due to litigation settlement accruals and
interest accretion
•
Generated $184 million in cash flow from operations during the six months
ended June 30, 2006

9
Third Quarter Items for Consideration                         
($ in Millions)
3Q05 Items:
Adjustment to method of accounting for
cash-based award plan         
(reported as General & Administrative expense)
($19)
Currency Conversion Reserve
(reported as Litigation Settlements expense)
($48)
Customer breach of business agreement
(reported as Other Income)
$18
Pre-Tax
Income (Expense)

11
Appendix A:
Operating Information Footnotes
Set forth on the following pages are tables that provide information regarding the performance results for the three and six
month periods ended June 30, 2006 for the payment programs of MasterCard International Incorporated and MasterCard
Europe sprl (collectively, “MasterCard”), the principal operating subsidiaries of MasterCard Incorporated.  In addition, set
forth are
tables that provide information regarding MasterCard’s payment programs for the years ended December 31,
2005 and 2004, in each case restated to present the information on the same basis as the information in the tables for the
three and six month periods ended June 30, 2006.
The tables set forth the gross dollar volume (“GDV”), purchase volume, cash volume and the number of purchase
transactions, cash transactions, accounts, cards and acceptance locations on a regional basis for MasterCard®-branded
and
MasterCard
Electronic™-branded
cards.
Growth
rates
over
prior
periods
are
provided
for
volume-based
data.
Debit
transactions
on
Maestro®
and
Cirrus®
-branded
cards,
Mondex®
transactions
and
other
branded
transactions
are
not included in the preceding tables. 
For purposes of the tables: GDV represents purchase volume plus cash volume and includes the impact of balance
transfers
and
convenience
checks;
“purchase
volume”
means
the
aggregate
dollar
amount
of
purchases
made
(including
PIN
point-of-sale)  with
MasterCard-branded
cards
for
the
relevant
period;
and
“cash
volume”
means
the
aggregate
dollar
amount of cash disbursements obtained with MasterCard-branded cards for the relevant period.  The number of cards
includes virtual cards, which are MasterCard-branded payment accounts in connection with which functional cards are not
generally issued. Acceptance locations include merchant locations, ATMs and other locations where cash may be
obtained.
The MasterCard payment product is comprised of credit, charge and debit programs, and data relating to each type of
program is included in the tables.  Debit programs include MasterCard-branded debit programs where the primary means
of
cardholder
validation
at
the
point
of
sale
is
for
cardholders
either
to
sign
a
sales
receipt
or
enter
a
Personal
Identification
Number (PIN).

12
Appendix A:
Operating Information Footnotes (cont.)
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 MasterCard volumes are reported.  These exchange rates are calculated on a quarterly
basis using the average exchange rate for each quarter.  However, MasterCard reports period-over-period rates of change
in GDV, purchase volume and cash volume solely on the basis of local currency information, in order to eliminate the
impact of changes in the value of foreign currencies against the
U.S. dollar in calculating such rates of change.
Accordingly, the period-over-period rates of change set forth in the tables cannot be extrapolated directly by reference to
dollar volume information presented by MasterCard for the current and historical periods.
The data set forth in the GDV, purchase volume, purchase transactions, cash volume and cash transactions columns is
derived from information provided by MasterCard members that is subject to verification by MasterCard and partial
cross-checking
against
information
provided
by
MasterCard’s
transaction
processing
systems.
The
data
set
forth
in
the
accounts,
cards
and
acceptance
locations
columns
is
derived
from
information
provided
by
MasterCard
members
and
is
subject to certain limited verification by MasterCard. Certain information with respect to acceptance locations is provided by
third parties and has not been independently verified by MasterCard. All data is subject to revision and amendment by
MasterCard’s members subsequent to the date of its release.
Volumes for the periods indicated in the following tables for MasterCard-branded debit programs in the U.S. region and
credit programs in the Asia/Pacific region are higher due to expanded data collection of PIN point of sale volumes.  Prior
periods have been adjusted to ensure comparability.
A portion of the data set forth in the accounts and cards columns reflects the impact of routine portfolio changes among
members and other practices that may lead to over counting of the underlying data in certain circumstances.
The tables include information with respect to MasterCard-branded transactions that are not processed by MasterCard and
transactions for which MasterCard does not earn significant revenues.
Note
that
the
columns
in
the
tables
may
not
add
due
to
rounding.
Growth
represents
change
from
the
comparable
year-ago
period.

13
Appendix A: Operating Information (cont.)
All MasterCard Credit, 
GDV
Growth
Purchase
Volume
Growth
Purchase
Transactions
Cash
Volume
Growth
Cash
Transactions
Accounts
Cards
Charge and Debit Programs
(Billions)
(Local)
(Billions)
(Local)
(Millions)
(Billions)
(Local)
(Millions)
(Millions)
(Millions)
South Asia / Middle East Africa
$14
51.2%
$9
34.4%
132
$5
89.1%
46
20
23
Asia / Pacific
138
8.9%
78
15.2%
987
60
1.8%
266
136
149
Europe
240
14.8%
177
14.6%
2,363
63
15.2%
421
126
139
Latin America
58
27.4%
27
30.8%
610
31
24.5%
218
66
79
Canada
35
15.4%
30
16.9%
360
5
7.8%
9
27
33
United States
437
15.6%
341
16.8%
5,084
97
11.9%
446
317
372
Worldwide
922
15.4%
660
16.7%
9,535
261
12.3%
1,408
692
796
MasterCard Credit and Charge Programs
United States
296
8.2%
244
9.5%
2,813
52
2.4%
32
232
282
Worldwide
694
11.8%
529
13.6%
6,625
165
6.2%
556
563
655
MasterCard Debit Programs
United States
142
35.0%
97
40.0%
2,271
45
25.2%
414
84
90
Worldwide
228
28.2%
131
31.1%
2,910
96
24.4%
851
130
141
For the 6 Months ended June 30, 2006
All MasterCard Credit, 
GDV
Growth
Purchase
Volume
Growth
Purchase
Transactions
Cash
Volume
Growth
Cash
Transactions
Accounts
Cards
Charge and Debit Programs
(Billions)
(Local)
(Billions)
(Local)
(Millions)
(Billions)
(Local)
(Millions)
(Millions)
(Millions)
South Asia / Middle East Africa
$9
30.0%
$6
24.5%
104
$3
44.5%
24
13
15
Asia / Pacific
127
7.0%
69
15.6%
841
59
-1.6%
206
123
136
Europe
218
12.8%
161
14.4%
2,149
57
8.4%
380
106
118
Latin America
43
35.6%
19
31.4%
490
24
39.0%
188
54
65
Canada
28
14.4%
24
15.9%
319
4
7.2%
9
24
30
United States
378
14.0%
292
16.4%
4,279
86
6.6%
387
294
351
Worldwide
804
13.7%
571
16.3%
8,180
233
7.8%
1,194
612
715
MasterCard Credit and Charge Programs
United States
273
4.5%
223
8.1%
2,653
51
-8.8%
33
229
281
Worldwide
625
8.0%
469
12.1%
5,977
156
-2.7%
493
517
608
MasterCard Debit Programs
United States
105
49.5%
69
54.8%
1,626
36
40.1%
354
65
70
Worldwide
179
39.0%
101
40.2%
2,203
78
37.3%
701
96
107
For the 6 Months ended June 30, 2005

14
Appendix A: Operating Information (cont.)
All MasterCard Credit, 
GDV
Growth
Purchase
Volume
Growth
Purchase
Transactions
Cash
Volume
Growth
Cash
Transactions
Accounts
Cards
Charge and Debit Programs
(Billions)
(Local)
(Billions)
(Local)
(Millions)
(Billions)
(Local)
(Millions)
(Millions)
(Millions)
South Asia / Middle East Africa
$5
34.3%
$3
24.8%
54
$2
59.4%
13
13
15
Asia / Pacific
64
6.6%
35
15.4%
433
29
-2.4%
106
123
136
Europe
113
13.5%
83
14.5%
1,124
29
11.0%
202
106
118
Latin America
23
36.0%
10
31.2%
258
13
40.1%
98
54
65
Canada
15
15.6%
13
17.1%
172
2
8.0%
5
24
30
United States
197
15.0%
154
18.4%
2,253
43
4.3%
203
294
351
Worldwide
416
14.4%
298
17.3%
4,294
118
7.6%
627
612
715
MasterCard Credit and Charge Programs
United States
142
5.2%
117
10.0%
1,396
24
-13.3%
16
229
281
Worldwide
322
8.6%
245
13.2%
3,135
77
-3.8%
257
517
608
MasterCard Debit Programs
United States
55
50.9%
36
56.7%
857
19
40.8%
187
65
70
Worldwide
94
40.2%
53
41.3%
1,159
41
38.7%
370
96
107
For the 3 Months ended June 30, 2005
All MasterCard Credit, 
GDV
Growth
Purchase
Volume
Growth
Purchase
Transactions
Cash
Volume
Growth
Cash
Transactions
Accounts
Cards
Charge and Debit Programs
(Billions)
(Local)
(Billions)
(Local)
(Millions)
(Billions)
(Local)
(Millions)
(Millions)
(Millions)
South Asia / Middle East Africa
$22
39.9%
$14
28.3%
228
$7
70.3%
59
16
18
Asia / Pacific
262
8.7%
142
15.0%
1,773
120
2.0%
456
132
144
Europe
453
13.5%
334
13.7%
4,530
119
12.8%
795
116
129
Latin America
98
32.3%
44
31.2%
1,073
54
33.3%
398
62
74
Canada
61
13.7%
52
16.0%
684
9
1.7%
19
25
32
United States
794
11.6%
617
14.5%
9,000
176
2.3%
769
297
351
Worldwide
1,690
13.0%
1,205
15.1%
17,287
485
8.1%
2,496
648
749
MasterCard Credit and Charge Programs
United States
576
5.1%
472
9.0%
5,596
103
-9.7%
67
227
276
Worldwide
1,313
9.3%
993
12.6%
12,668
321
0.3%
1,048
540
630
MasterCard Debit Programs
United States
218
33.3%
145
37.1%
3,404
73
26.3%
702
69
75
Worldwide
376
28.1%
212
28.4%
4,619
164
27.7%
1,447
107
118
For the Year ended December 31, 2005

15
Appendix A: Operating Information (cont.)
All MasterCard Credit, 
GDV
Growth
Purchase
Volume
Growth
Purchase
Transactions
Cash
Volume
Growth
Cash
Transactions
Accounts
Cards
Charge and Debit Programs
(Billions)
(Local)
(Billions)
(Local)
(Millions)
(Billions)
(Local)
(Millions)
(Millions)
(Millions)
South Asia / Middle East Africa
$15
27.7%
$11
26.4%
186
$4
31.5%
39
11
13
Asia / Pacific
234
2.2%
120
14.9%
1,549
114
-8.4%
374
118
131
Europe
398
14.1%
293
15.3%
4,051
105
11.0%
739
99
111
Latin America
69
33.4%
31
27.9%
843
39
38.2%
325
46
57
Canada
50
13.5%
42
13.9%
605
8
11.5%
18
23
28
United States
712
11.7%
539
12.2%
7,723
172
10.1%
621
278
337
Worldwide
1,478
11.8%
1,035
14.0%
14,957
443
6.8%
2,116
575
678
MasterCard Credit and Charge Programs
United States
548
6.4%
433
8.5%
5,219
115
-1.1%
75
216
271
Worldwide
1,186
8.9%
870
12.5%
11,392
315
0.0%
956
486
578
MasterCard Debit Programs
United States
164
34.2%
106
30.2%
2,504
58
42.1%
546
62
66
Worldwide
292
25.1%
165
22.6%
3,566
127
28.5%
1,161
89
100
For the Year ended December 31, 2004

16
Appendix B:
New Ownership Structure
($ in thousands)
December 31, 2005
June 30, 2006
49,014
77,796
Accumulated other comprehensive income, net of tax
$
1,169,148
$   2,117,006
Total Stockholders’
Equity
145,515
(1,263,102)
5
Retained earnings (accumulated deficit)
974,605
3
3,302,298
4
Additional paid-in capital
-
3
-
Class M common stock, $.0001 par value
14
3
6
2
Class B common stock, $.0001 par value
$
-
3
$
8
1
Class A common stock, $.0001 par value
Stockholders’
equity:
1
IPO share issuance
2
Reduced for share redemption
3
Restated
to
give
effect
to
the
reclassification
of
common
stock
immediately
prior
to
the
IPO
4
Increased by $2,449,903 for IPO proceeds, $394,784 for charitable donation and $58,034 for stock based compensation,           
less $575,028 for stock redemptions
5
Decreased
by
$1,224,901
for
the
redemption
and
$183,716
YTD
net
loss

17