Exhibit 99.1
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September 15, 2011
MasterCard Incorporated
Investment Community Meeting
©2011 MasterCard. Proprietary.
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Agenda
8:30 a.m.
Welcome
Strategic Discussion
Marketing Update Core Products Emerging Payments MasterCard Advisors
Barbara Gasper
Ajay Banga
Alfredo Gangotena Tim Murphy Ed McLaughlin Kevin Stanton
10:20 a.m. Break
10:40 a.m.
LAC & APMEA
U.S. Markets Financial Perspective Q&A Session Closing Remarks
Richard Hartzell / Vicky Bindra
Chris McWilton Martina Hund-Mejean Management Ajay Banga
12:30 p.m. Lunch, Mingle & Demos Management & Staff
2:30 p.m. Event Adjourns
September 15, 2011 Investment Community Meeting
©2011 MasterCard. Proprietary.
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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.
September 15, 2011
Investment Community Meeting
©2011 MasterCard. Proprietary.
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Ajay Banga
President and Chief Executive Officer September 15, 2011
Executing on the Strategy
Investment Community Meeting
©2011 MasterCard. Proprietary.
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Recent Performance vs. Long-Term Objectives
2011-2013 First Half 2011
Objectives* Performance*
Net Revenue 12-14% 16%
Growth CAGR
Operating Minimum
Margin 50% 54%
annually
Earnings Per 20%+
Share Growth CAGR 28%
2011-2013 First Half 2011
Objectives* Performance*
Net Revenue 12-14% 16%
Growth CAGR
Operating Minimum
Margin 50% 54%
annually
Earnings Per 20%+
Share Growth CAGR 28%
September 15, 2011
Investment Community Meeting
©2011 MasterCard. Proprietary.
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Three Drivers of Growth
Personal Consumption Expenditure
Cash & Check vs. Electronic Payments
MasterCard Share of Electronic Payments
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Three Key Influencers
Consumers
B2B2C
Governments & Opinion Leaders
Local engagement with governments and merchants
Technology
Innovation and productivity
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Executing on the Strategy: Grow, Diversify, Build
GROW
Core Business
• Investments in product capabilities and business development
• Key wins in Credit, Commercial, Debit and Prepaid
DIVERSIFY
Geographies & Customers
• WalMart prepaid cards
• China Union Pay
• UK public sector procurement wins
• Poste Italiane
BUILD
New Businesses
• DataCash and Access
Prepaid acquisitions
• Telefonica, Google, Isis, Orange, Airtel
• JV with Smart for mobile payments technology
• Information Services
Powered by people, technology and data
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Margins and Profitability
Deliver 50% plus operating margin annually
Pursue efficiency in A&M, technology spend and G&A
Use pricing selectively
Invest in growth and innovation
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Long-Term Revenue Growth Opportunity
Market Growth
Growth from
Strategic Investments
Low to Mid-Teens
Growth will come through both increased market share and “growing the pie”
September 15, 2011
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©2011 MasterCard. Proprietary.
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Alfredo Gangotena, Chief Marketing Officer September 15, 2011
From Awareness to Preference:
MasterCard Marketing
Investment Community Meeting
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Marketing Strategic Focus for Growth
GROW
Brand Preference
• Revenues
• Market Share
DIVERSIFY
New Segments and Markets
• New Consumers
• New Geographies
BUILD
Consumer Adoption
• e-Commerce / Mobile
• Social Media
September 15, 2011
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Market Development
From Awareness to Preference
Emerging Developing Mature
Brand Awareness Awareness Preference Brand Preference
Consumer Education Merchant Acceptance Build Issuer Card Penetration
Brand Preference Increase Usage Card Activation
Consumer Affection New Acceptance Cardholder Benefits
September 15, 2011
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Priceless Campaign Evolution
Create Brand Preference with Stakeholders
Brand Preference
Priceless
Experiences
Product Benefits
Consumer Affection
Merchant Partnerships
Issuer Growth
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©2011 MasterCard. Proprietary.
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Consumer Affection
Connecting People to their Passions
Celebrating products in advertising
Experiences are more valuable than things
Experiences Access Offers
Delight consumers
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©2011 MasterCard. Proprietary.
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WORLD ELITE MASTERCARD
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Consumer Affection
Connecting People to their Passions
“Priceless New York”
Experiences are more valuable than things
- Launch: July 2011 -
Shopping Dining Sports
Music & Movies
Arts & Culture
Theater Attractions Travel
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PASSION ON A TRADITION PRICELESS
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Consumer Affection
U.S. – Priceless New York and World Elite
Objective
Preference
Segments
• Mass
• Affluent
Benefits
• Priceless New York
• Travel
• Global Concierge (24/7)
Results
• “Family Meal” offers redeemed1
• 60% market share (among participating concessions)1
• Social: buzz, visits to Facebook, “Likes”, consumer engagement
1 Source: Legends Hospitality, LLC; March 2011 through July 2011
September 15, 2011
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Merchant Partnerships
Singapore – “Great Singapore Sale”
Objective
Increase Usage
Segments
• Mass
• Affluent
Benefits
• 8th year of exclusive partnership
• 120 merchants, 350 stores
• Exclusive rewards
Results
• MasterCard volume lift: Domestic +49%; Cross-border +44%1
• Social: App downloads, sharing, voting, h “Likes”
• Expansion to Malaysia, Indonesia, Dubai
1 Source: MasterCard Data June-July 2011
September 15, 2011
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Issuer Growth
Canada – PayPass Innovation
Objective
Top of Wallet
Segment
Mass
Benefits
• Extend to low-value payments
• More acceptance locations
• Faster checkout
Results
• Increased card spend by 24%1
• Increased transactions for issuers and sales for merchants
• Expansion covering 36 markets to continue through 2011
1 Source: Accounts tracked Q3 2007 through Q4 2009
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©2011 MasterCard. Proprietary.
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Worldwide Advertising & Marketing Investment Efficiencies
Global A&M Investment and Overall Brand Opinion1
Global A&M Investment
Overall Brand Opinion
1000
750
$MM 500
250
0
2008 2009 2010
80% 75% 70% 65% 60%
Maintained brand performance with decreased worldwide spend
Efficiencies achieved through:
• Advertising production
• Agency fees
• Sponsorships
1 Source: MasterCard Consumer Tracking Study
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©2011 MasterCard. Proprietary.
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Worldwide Advertising & Marketing Key Performance Metrics
1
Transaction Frequency
Brand use / spend
2
Used Most Often
Position in Wallet
3
Net Promoter Score
Brand opinion
Brand recommendation
September 15, 2011
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©2011 MasterCard. Proprietary.
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Worldwide Advertising & Marketing Growing Revenue
Consumers Merchants Issuers
Brand Preference
Consumer Affection New Segments
Partnerships New Acceptance
Innovations New Markets
September 15, 2011
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©2011 MasterCard. Proprietary.
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Tim Murphy
Chief Product Officer September 15, 2011
A World Beyond Cash:
Core Products
Investment Community Meeting
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Our Core Business
…enjoys healthy growth
1H 2011 GDV Growth
Credit
Consumer + 11.3% Commercial + 16.7%
Prepaid + 16.1%
Debit + 19.8%
…with bright prospects
85% of global payment transactions are cash and checks
Our ambition: Grow significantly faster than market
Investment Community Meeting
September 15, 2011
©2011 MasterCard. Proprietary.
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Driving Growth
GROW DIVERSIFY BUILD
Leverage market Diversify business with Expand selectively
growth trends new consumers and across the value chain
• Debit partners • Access Prepaid Worldwide
• Prepaid • IPS
Accelerate innovation • Cardholder Solutions
• Consumer Credit
• Commercial
“Grow the Pie” by increasing acceptance and financial inclusion
September 15, 2011
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©2011 MasterCard. Proprietary.
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Grow: Leverage Market Growth Trends
Debit
Multi-generational shift to electronic payments
Debit is a natural replacement for cash
Rising middle class in emerging markets fuels Debit growth
Win with Issuers
Accelerate Cash Conversion
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Grow: Leverage Market Growth Trends
Debit
Win with Issuers
Sovereign and Swedbank
8 million Cards $50+ billion annual GDV
Promote Usage
Drive spend with leading
merchant coalition program,
powered by MasterCard
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©2011 MasterCard. Proprietary.
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Grow: Accelerate Innovation
Affluent Consumers
11%
of population
0% 50% 100%
42%
of PCE
0% 50% 100%
Deliver New Products Focus on Innovative Features
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©2011 MasterCard. Proprietary.
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Grow: Accelerate Innovation
Affluent Consumers
Total Annual GDV Potential: $20+ billion
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Grow: Accelerate Innovation
Commercial
CANADA
21%
UNITED STATES
15%
LATIN AMERICA
27%
EUROPE
17%
1H 2011 GDV Growth
APMEA
18%
Capitalize on Differentiation Expand Procurement
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Grow: Accelerate Innovation
Commercial
Won 12 of the largest U.K. public sector portfolios
Investments in Smart Data and in Control driving procurement wins
Exclusive for acquisition of small business cards in Chase branches Using insights to optimize profitable small business programs
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Diversify: New Consumers, New Partners
Prepaid
2009
30% 70%
Total $172B
CAGR
18% U.S. 29% ROW
U.S. ROW
2017
Total $840B
53% 47%
Grow in consumer re loadable, public sector and commercial
Capture more of the value chain
Migrate non-branded volumes
Source: BCG Prepaid Market Sizing Study, May 2010
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Diversify: New Consumers, New Partners
Prepaid – Financial Inclusion for Underserved
2.5 billion underserved adults worldwide
Governments leading the way
Public Sector
Benefits
Payroll
State Benefits
U.S.
Egyptian Bank Co. (EBC) Payroll
Egypt
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Diversify: New Consumers, New Partners
Prepaid – Spend Segmentation for the Banked
Beyond the underserved, reaching new customers via…
Retail Mobile
WalMart My Card DiGi Simple Card
U.S. Malaysia
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Build: New Businesses
Access Prepaid Worldwide
£290 million acquisition closed April 2011
Provides critical program management capabilities
Integration on plan
Executing growth strategy
September 15, 2011
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Driving Growth
Executing on our Grow, Diversify,
Build initiatives to gain share
“Growing the Pie” of electronic payments
Driving faster-than-market growth
September 15, 2011
Investment Community Meeting
©2011 MasterCard. Proprietary.
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Ed McLaughlin
Chief Emerging Payments Officer September 15, 2011
A World Beyond Plastic:
Emerging Payments
Investment Community Meeting
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Driving Growth through Innovation
GROW
Enhance Payments
• PayPass
• M/Chip EMV
• Transit
DIVERSIFY
Expand Capabilities
• inControl
• Bill Pay
• MoneySend
• Offers and Redemption
BUILD
Extend Value Chain
• DataCash
• Mobile Payments Solutions (MPS)
• Remote Payments
• Mobile Money
New consumer experiences accelerate the transition to electronic payments
September 15, 2011
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©2011 MasterCard. Proprietary.
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Changing Consumer Experiences
Established Emerging
e/m-
Commerce
Remote
Payments
PC-based e-Commerce Internet connected devices
Proximity
Payments
Card at Point of Sale PayPass at Point of Sale
Mobile Money
Cash Mobile Money Services
September 15, 2011
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Remote Payments
Connected Devices for Remote Payments
Total Global Unit Shipments (MM)
Tablets
Smart Phones
Notebook PCs
Desktop PCs
1400
1200
1000
800
600
400
200
0
2009
2010
2011E
2012E
2013E
Source: KPCB Top Mobile Internet Trends, Feb 2011
Easier to Use More Secure New Transactions
Source: KPCB Top Mobile Internet Trends, Feb 2011
MasterCard providing interoperability and connectivity
September 15, 2011
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Remote Payments
DataCash Payments Gateway
Gateway and Fraud Tools Growth Markets Foster Innovation
DATACASH
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Proximity Payments
PayPass NFC Payments for Smart Phones
Enhanced Information Speed and Convenience Offers and Redemption
Smartphone growth is transforming shopping and will accelerate PayPass adoption and expand merchant acceptance
% of Total U.S. Phones
Smart Phones
NFC-Enabled
64%
48%
70%
60%
50%
40%
30%
20%
10%
0%
2010
2011
2012
2013
2014
2015
2016
Source: BCG Research & Analysis 2011
September 15, 2011
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Proximity Payments
PayPass-Enabled Mobile Wallets
Korea:
SK Telecom and Samsung Card
United Kingdom:
Orange UK and Barclaycard
Turkey:
Turkcell and Yapi Kredi
United States:
Google, Citi and Sprint
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Mobile Money
Mobile Money Accelerating Globally
Reaching Banked and Underserved Consumers
Number of Mobile Money Accounts (MM)2
Creating new ways to pay for existing MasterCard cardholders and addressing the needs of 2.5 billion global consumers1 who are underserved
107 199 326 499 684 807 2011 2012 2013 2014 2015 2016 +40%
Sources: 1) Gartner 2010, Ovum, World Bank, EIU, BCG analysis. 2) Gartner and Ovum research and BCG estimates for growth
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Mobile Money
MPS – Mobile Payments Gateway
Mobile Money users access MasterCard open loop network
Top Up MoneySend Payroll
Public Sector Benefits
Merchant Payments
MoneySend
Bill Payments
Virtual Card Numbers
Companion Card
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Mobile Money
Mobile Money Solutions in Market
Itaú and Vivo Tech
Brazil
Telefónica JV
LAC
Standard Chartered and Airtel
Sub-Saharan Africa
September 15, 2011
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Emerging Payments
Transforming consumer behavior globally
Increasing electronic transactions and network reach
Driving growth and preference for MasterCard
September 15, 2011
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Kevin Stanton
President, MasterCard Advisors September 15, 2011
Differentiated Services:
MasterCard Advisors
Investment Community Meeting
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Differentiated Professional Services
Data advantage
Talent advantage
Consulting
Implementation
Information
New customers New places
Increasing loyalty
Full suite of complementary services drives growth for MasterCard and its customers
September 15, 2011
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Data Advantage
Anonymous Transactional
• Actual
• Real-time
• Consumer / business spend
Multi-sourced
• 32 million merchants
• 22,000 issuers
Massive
• 1.7 billion cards
• 160 million transactions / hour
Worldwide
Available from few others
Differentiation starts with data sourced from a massive worldwide payments network
September 15, 2011
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Unparalleled Data Advantage
Cleansed, aggregated, augmented
• 700,000 automated rules
• Continuously tested
Warehoused
• 1.3 petabytes
• 5+ year historic global view
• Rapid retrieval
• Above-and-beyond privacy protection and security
Transformed into actionable insights
• Reports, indexes, benchmarks
• Behavioral variables
• Models, scores, forecasting
• Econometrics
Available only from MasterCard
Consumer insights are unmatched, proprietary and 15 years in the making
September 15, 2011
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Worldwide Talent Advantage
TORONTO PURCHASE
ST. LOUIS MIAMI
MEXICO CITY
WATERLOO
LONDON WARSAW MOSCOW FRANKFURT
ROME BUDAPEST MADRID ISTANBUL
DUBAI MUMBAI
TOKYO SHANGHAI
HONG KONG
SÃO PAULO
BUENOS AIRES
SINGAPORE
SYDNEY
In-house workforce leverages global and local expertise, executes in market and accumulates IP for MasterCard
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Unmatched Capabilities
Generalist Consulting
Consulting Information Implementation Generalist
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Deepening and Expanding Customer Base
Expanding Target Customers
INFORMATION
CONSULTING
IMPLEMENTATION
Relevant to an increasingly diverse customer base, leading with information services
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Financial Contribution and Mix
Sources of financial contribution:
Direct Revenue
New / Expanded Deals
Product Sales
Volume Growth
FY 2007
APMEA Europe U.S. LAC Canada
APMEA Europe U.S. LAC Canada
Evolving direct revenue mix by geography
Contributes directly and indirectly to MasterCard’s financial performance from increasingly diverse geographies
September 15, 2011
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Case Studies
United States: Data-driven information services risk solution
• Transaction variables improve risk model performance 15%
• Results: Lender embeds Advisors solution into processes
Europe: Consulting-led merchant loyalty program build
• 1 million consumers, 20,000 merchant locations
• Results: Card usage grows 5 times faster than market
Latin America: New account implementation
• MasterCard accounts acquired through direct mail up 167%, share tripled with issuer
• Results: MasterCard opens and gains share in important card portfolio
Data-driven, real-world solutions wins business for MasterCard
September 15, 2011
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Advisors Advantage
Differentiated Assets
• Data advantage
• Talent advantage
• Worldwide advantage
Differentiated Services
• Information
• Consulting
• Implementation
Differentiated Results
• Data-driven intelligence, strategy and implementation to advance commerce
Delivers a competitive advantage that grows the core business, diversifies income streams and builds new businesses
September 15, 2011
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Richard Hartzell, President, Latin America & the Caribbean Vicky Binda, President, Asia Pacific / Middle East / Africa September 15, 2011
High-Growth Market Opportunities:
LAC and APMEA Regions
Investment Community Meeting
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Latin America & the Caribbean Regional Overview
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Divisions |
13 Offices
Operational Statistics1
3-Year CAGR (2007-2010)
GDV: 12% Cards: 8%
GDV ($US B) Cards (MM) $158 $187 $179 $220
99 115 122 123 125 $100 $131 130
2007 2008 2009 2010 1H10 1H11
1 MasterCard-branded cards
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Asia Pacific Middle East Africa Regional Overview
7 Divisions
24 Offices
Operational Statistics1
3-Year CAGR (2007-2010)
GDV: 21% Cards: 12%
GDV ($US B) Cards (MM)
$349 $422 $486 $619 $284 $374
207 241 268 294 281 313 2007 2008 2009 2010 1h10 1h11
1 MasterCard-branded cards
1 MasterCard-branded cards
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Focus on Growth
Similar Objectives with Market-Specific Delivery
Focus Areas for Growth
• Acceptance
• Processing / Switching
• Innovation
• Regulators
• Financial Inclusion
Key Imperatives
• Drive consumer preference
• Lead in Prepaid solutions
• Implement emerging payments solutions, including mobile
• Support partnerships and new models
• Deploy value-added services
September 15, 2011
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©2011 MasterCard. Proprietary.
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Chris McWilton
President, U.S. Markets September 15, 2011
From Challenge to Growth:
U.S. Markets
Investment Community Meeting
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U.S. Markets: Focused to Win
Strong business performance despite protracted economic recovery
Significant deal momentum, particularly in Debit
Strategically positioned as mobile payments unfold
Developing resources to deal with growing, diverse customer base
Well aligned with U.S. consumer trends
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Consistent, Strong Performance
GDV 7.9% Growth $ Billions $600 $500 $400 $300 $200 $100 $- IH2010 IH2011
Debit $231 Debit $256
Credit Credit
$247 $260
Processed Transactions
8.2% Growth
7,000
6,000
5,000 4,000 3,000 2,000 1,000 0 6,326 6,844
IH2010 IH2011
Net Revenue 12.5% Growth $1,400 $1,200 $1,000 $800 $600 $400 $200 $- IH2010 IH2011 $1,083 $1,219
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Significant Deal Activity and Momentum
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Strategically Positioned in Mobile
Drive innovation in payments through
partnerships and alliances
across multiple industries
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Moving Beyond Durbin
Reinforcing value Debit continues to provide
Leveraging advantages of MasterCard signature and PIN debit offerings
Operationalizing Fed rules to provide a competitive product and price
Solidifying key acquirer and merchant partnerships
Strategic, surgical approach
September 15, 2011
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U.S. Strategic Priorities
Debit
The Opportunity
• Cash & check currently represent 52% of U.S. transactions
Strategic Imperatives
• Winning signature deals
• Winning PIN debit deals
MasterCard Momentum
• 2011 volume growth
• New Debit product construct
U.S. Debit Purchase Volume Growth
30% 20% 10% 0% -10% 3Q’09 4Q’09
1Q’10 2Q’10 3Q’10 4Q’10 1Q’11 2Q’11
MasterCard Visa
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U.S. Strategic Priorities
Prepaid
The Opportunity
• $442 billion market by 2017
Strategic Imperatives
• Align against key segments
• Launch expanded regulatory related activities
• Grow new markets, customers and channels
MasterCard Momentum
• Progress across key verticals, with healthy pipeline
• Strong public sector momentum
• Uptick of consumer reloadable
Consumer 19%
Commercial 44%
Public Sector 37%
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U.S. Strategic Priorities
Commercial
The Opportunity
• Estimated $10 trillion segment
Strategic Imperatives
• Demonstrate differentiated product suite
• Develop distinct needs-based solutions
• Enhance issuer and end-customer performance
MasterCard Momentum
• Significant portfolio flips
• Differentiated value proposition
• Smart Data expansion
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U.S. Strategic Priorities
Consumer Credit
The Opportunity
• Affluent families and international travelers
Strategic Imperatives
• Deliver compelling benefits
• Enable extraordinary experiences
• Integrated Marketing & Advisors support
MasterCard Momentum
• World Elite refresh
• Priceless New York launch
20% 10% 0% -10% -20% -30%
U.S. Credit Purchase Volume Growth
3Q’09 4Q’09 1Q’10 2Q’10 3Q’10 4Q’10 1Q’11 2Q’11
MasterCard
Visa
MasterCard (Consumer only)
MasterCard (Commercial only)
September 15, 2011
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U.S. Strategic Priorities
Acceptance Channels
The Opportunity
• Merchants and acquirers core to business portion of U.S. revenue
Strategic Imperatives
• Broaden focus on merchant proposition
• Target high-yield vertical channels
• Identify innovative partnership opportunities
MasterCard Momentum
• Open new channels
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Well Aligned with Consumer Trends
Consumer Trend
• Avoiding excessive borrowing
• Wanting better control of their financial resources
• Wary of large financial institutions
• More technologically savvy
• Increasing numbers of unbanked or underbanked
MasterCard Response
• Focus on Debit and Prepaid
• Offer inControl and Prepaid
• Develop and maximize small and mid-tier bank and credit union relationships
• Grow e-Commerce offerings
• Activate mobile joint ventures
• Focus on Prepaid
• Enable financial inclusion
September 15, 2011
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U.S. Markets: Focused to Win
Leveraging significant deal activity and momentum
Exercising prudence in financial negotiations
Investing in innovative products and solutions
Focusing on both traditional and non-traditional customers
Building, Growing and Diversifying revenue streams
September 15, 2011
Investment Community Meeting
©2011 MasterCard. Proprietary.
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Martina Hund-Mejean Chief Financial Officer September 15, 2011
Financial Perspective
Investment Community Meeting
©2011 MasterCard. Proprietary.
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Topics for Today
2011 Outlook
Capital Structure Considerations
Long-Term Growth Opportunity
Long-Term Performance Targets
September 15, 2011
Investment Community Meeting
©2011 MasterCard. Proprietary.
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Worldwide
Gross Dollar Volume (GDV) Growth
Reported
Processed
15.6% Processed 16.7%
Local Growth %
20% 15% 10% 5% 0%
8.1% 10.9% 12.9% 16.4% 16.7%
Q3’10 Q4’10 Q1’11 Q2’11 Jul/Aug
September 15, 2011
Investment Community Meeting
©2011 MasterCard. Proprietary.
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U.S. Credit
Gross Dollar Volume Growth
Reported Processed
5.9% Processed 6.5%
Local Growth %
10% 5% 0% -5%
-0.9% 2.4% 4.9% 5.3% 6.5%
Q3’10 Q4’10 Q1’11 Q2’11 Jul/Aug
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September 15, 2011
Investment Community Meeting
©2011 MasterCard. Proprietary.
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U.S. Debit
Gross Dollar Volume Growth
Reported Processed
16.8% Processed 20.1%
Local Growth %
25% 20% 15% 10% 5% 0% -5%
Q3’10 Q4’10 Q1’11 Q2’11 Jul/Aug
-3.7% 1.4% 6.9% 15.1% 20.1%
September 15, 2011
Investment Community Meeting
©2011 MasterCard. Proprietary.
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Rest of World
Gross Dollar Volume Growth
Reported Processed
22.4% Processed 22.5%
Local Growth %
25% 20% 15% 10% 5% 0%
Q3’10 Q4’10 Q1’11 Q2’11 Jul/Aug
14.5% 16.1% 16.9% 19.9% 22.5%
September 15, 2011
Investment Community Meeting
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Worldwide
Processed Transactions
Local Growth %
24% 16% 8% 0%
Q3’10 Q4’10 Q1’11 Q2’11 Jul/Aug
0.6% 6.3% 11.1% 17.4% 20.3%
September 15, 2011
Investment Community Meeting
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Worldwide
Cross-Border Volume Growth
Local Growth %
25% 20% 15% 10% 5% 0%
Q3’10 Q4’10 Q1’11 Q2’11 Jul/Aug
15.4% 18.7% 18.5% 19.3% 19.3%
September 15, 2011
Investment Community Meeting
©2011 MasterCard. Proprietary.
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2011 Financial Outlook
Net Revenue
• Diminishing impact of deconversions in 2nd half
• DataCash acquisition to lap in 4Q
• Full year net tailwind of 2-3 ppt from Euro / Real FX
Operating Expenses
• Small operating margin expansion
• Continue to invest in strategic areas
• Acquisitions will have a dilutive impact on EPS
• A&M spend pattern similar to 2009 and 2010
Tax Rate
• Slightly lower than 33%
September 15, 2011
Investment Community Meeting
©2011 MasterCard. Proprietary.
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Capital Structure Considerations Guiding Principles
Strong Balance Sheet
Long-Term Business Growth
Return Excess Cash
• Preserve strong balance sheet, liquidity and credit ratings
• $3.6 billion of cash as of June 30, 2011 with no debt
• Available debt capacity, though remain mindful of outstanding litigation
• Investments in organic opportunities and M&A transactions
• Primary focus on technology, processing, prepaid, commercial, e-Commerce and mobile
• Current bias towards share repurchase over dividend increases
Will opportunistically execute share repurchases
Provides greater flexibility to pursue long-term business growth objectives
September 15, 2011
Investment Community Meeting
©2011 MasterCard. Proprietary.
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Liquidity
$7 $6 $5 $4 $3 $2 $1 $0
$ Billions
$3.6 $2.8 ($3.0) ($0.9) $2.5
Cash Balance
(as of 6/30/2011)
Available Revolver Capacity
Operational Settlement Exposure
Share Repurchase*
Excess Liquidity
* Amount remaining to be executed under announced share repurchase programs.
September 15, 2011
Investment Community Meeting
©2011 MasterCard. Proprietary.
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Three Drivers of Growth
Personal Consumption Expenditure
• Emerging market growth
Cash & Check vs. Electronic Payments
• Cash to electronic form
• Financial inclusion
• Increasing acceptance footprint
• Public sector
MasterCard Share of Electronic Payments
• Winning deals globally
• Non-traditional customers / spaces
• Innovative solutions and new technology
September 15, 2011
Investment Community Meeting
©2011 MasterCard. Proprietary.
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Continued Secular Shift to Electronic Payments Offers Great Opportunity
Personal Consumption Expenditure (PCE)
Electronic – Cards
EFT
Cash & Checks
$27T 23% 12% 65% $37T 30% 14% 56% $50T 40% 16% 44%
2005 2010 2015E
2010 – 2015E (CAGR) Global PCE 6% Electronic—Cards 10-12% EFT 10% Cash & Checks 2%
Illustration supports the scenario where the electronic and cards PCE segment to grows at 12% over the period 2010-2015.
Source: EIU (PCE estimate and forecasts), Euromonitor (cash/check/electronic breakouts) and internal analysis
September 15, 2011
Investment Community Meeting
©2011 MasterCard. Proprietary.
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Long-Term Revenue Growth
2010-2015E CAGR (in %)
6% Secular Growth 4-6% 10-12% (1%) MA Mix 9-11% Strategic Investments Low-Mid Teens% Global PCE
Industry Purchase Volume
MA Market Momentum
MasterCard Long-Term Revenue
Source: EIU, Euromonitor and MasterCard Internal Estimates
September 15, 2011
Investment Community Meeting
©2011 MasterCard. Proprietary.
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Strategic Investments Support Long-Term Revenue Objective in a Competitive Market
GROW
Core Business
• Investing in Debit, Commercial and Prepaid
• Capture a larger share of the value chain
DIVERSIFY
Geographies & Customers
• Build relationships with new partners:
– Public sector
– Retailers
– Telecom
• Seek diversification in growth markets
BUILD
New Businesses
• e-Commerce capabilities
• Innovate in the mobile space:
– Mobile money
– Mobile payments
• Leverage acquisitions
• Information Services
September 15, 2011
Investment Community Meeting
©2011 MasterCard. Proprietary.
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Longer-Term
2011 – 2013 Performance Objectives On a constant currency basis
Net Revenue Growth
12-14% CAGR
Operating Margin
Minimum 50% annually
Earnings Per Share Growth Rate
20%+ CAGR
September 15, 2011
Investment Community Meeting
©2011 MasterCard. Proprietary.
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September 15, 2011
Question & Answer Session
Investment Community Meeting
©2011 MasterCard. Proprietary.
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September 15, 2011
Product Demos and Experience
Investment Community Meeting
©2011 MasterCard. Proprietary.
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Ajay Banga
President and Chief Executive Officer September 15, 2011
Closing Comments
Investment Community Meeting
©2011 MasterCard. Proprietary.
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Our Focus
Use technology and innovation – powered by our people, insights and expertise – to grow the payments space and our presence within it
Execute through the grow, diversify, build roadmap
Deliver on our commitments
September 15, 2011
Investment Community Meeting
©2011 MasterCard. Proprietary.
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MasterCard Worldwide
The Heart of Commerce