Press release of Visa Inc.

EX-99.1 2 dex991.htm PRESS RELEASE OF VISA INC. Press release of Visa Inc.

Exhibit 99.1

LOGO

Visa Inc. Posts Strong Fiscal Fourth Quarter and Full-Year 2010 Earnings Results and Authorizes

New $1 Billion Share Repurchase Plan

•

GAAP quarterly net income of $774 million or $1.06 per diluted class A common share

•

Full-year 2010 GAAP net income of $3.0 billion or $4.01 per diluted class A common share

•

Adjusted quarterly net income of $695 million or $0.95 per diluted class A common share excluding the revaluation of the Visa Europe put option

•

Adjusted full-year 2010 net income of $2.9 billion or $3.91 per diluted class A common share excluding the revaluation of the Visa Europe put option

•

The Company authorized a new $1 billion share repurchase plan and increased its quarterly dividend payment by 20%

SAN FRANCISCO, CA, October 27, 2010 – Visa Inc. (NYSE: V) today announced financial results for the Company’s fiscal fourth quarter and full-year 2010. For the fourth quarter ending September 30, 2010, GAAP net income was $774 million, an increase of 51% over the prior year. Diluted class A common stock earnings per share were $1.06, an increase of 54% over the prior year. On an adjusted basis (excluding the revaluation of the Company’s Visa Europe put option), net income for the quarter was $695 million, an increase of 35% over the prior year. Diluted class A common stock earnings per share were $0.95, an increase of 38% over the prior year.

GAAP net operating revenue in the fiscal fourth quarter of 2010 was $2.1 billion, an increase of 13% over the prior year and driven by strong contributions across all revenue categories, in particular data processing and international transaction revenues. Currency fluctuations contributed a positive 1% towards quarterly net operating revenues.

GAAP net income for the full-year was $3.0 billion, an increase of 26% over the prior year. Diluted class A common stock earnings per share were $4.01, an increase of 29% over the prior year. GAAP net operating revenue in the full-year was $8.1 billion, an increase of 17% over the prior year and was driven by strong contributions across all revenue categories. Currency fluctuations contributed a positive 1% towards full-year net operating revenues.

On an adjusted basis (excluding the revaluation of the Company’s Visa Europe put option), net income for the full-year was $2.9 billion, an increase of 23% over the prior year. Diluted class A common stock earnings per share were $3.91, an increase of 26% over the prior year. The Company’s adjusted quarterly and full-year net income per class A common shares outstanding are non-GAAP financial measures that are reconciled to their most directly comparable GAAP measures in the accompanying financial tables.

Visa’s results for both the fourth fiscal quarter and the full-year reflect the inclusion of CyberSource for the two months after its acquisition.

“We are very pleased with our fourth fiscal quarter and full-year earnings results as we continue to successfully execute on our strategic initiatives while in the midst of a very challenging business environment,” said Joseph Saunders, Chairman and Chief Executive Officer. “Our continued focus, execution and resilience have enabled us to continue to generate solid returns and meaningful growth across our business, products and geographies.”

“Looking ahead to our fiscal 2011, Visa will continue to invest in initiatives and investments to grow our core and emerging product portfolios globally, innovate into new payments channels and integrate our recent acquisition of CyberSource. We are committed to delivering solid business performance, supporting our financial clients and partners, and delivering above average shareholder returns.”

Fiscal Fourth Quarter 2010 Financial Highlights:

Payments volume growth, on a constant dollar basis for the three months ended June 30, 2010 on which fiscal fourth quarter service revenue is recognized, was a positive 14% over the prior year at $802 billion.

Payments volume growth, on a constant dollar basis, for the three months ended September 30, 2010, was a positive 14% over the prior year at $828 billion.

Cross border volume growth, on a constant dollar basis, was a positive 16% for the three months ended September 30, 2010.

Total processed transactions, which represent transactions processed by VisaNet, for the three months ended September 30, 2010, totaled 12.1 billion and were a positive 16% increase over the prior year.

For the fiscal fourth quarter 2010, service revenues were $912 million, an increase of 13% over 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 $840 million. International transaction revenues, which are driven by cross border payments volume, grew 22% over the prior year to $619 million. Other revenues, which include the Visa Europe licensing fee, were $167 million, up 3% over the prior year. Volume and support incentives, which are a contra revenue item, were $421 million and represent 17% of gross revenues.

Total operating expenses on a GAAP basis were $1 billion for the quarter, a less than 1% decline over the prior year.

Cash, cash equivalents, restricted cash, and available-for-sale investment securities were $6.0 billion at September 30, 2010.

Visa’s GAAP effective tax rate was 38% for quarter ended September 30, 2010, excluding the revaluation of the Visa Europe put option.

Fiscal Full-Year 2010 Financial Highlights:

For the fiscal full-year, service revenues were $3.5 billion, an increase of 10% over the prior year. Data processing revenues rose 29% over the prior year to $3.1 billion. International transaction revenues, which are driven by cross-border payments volume, grew 20% over the prior year to $2.3 billion. Other revenues, which include the Visa Europe licensing fee, were $713 million, up 14% over the prior year.

Volume and support incentives, which are a contra revenue item, were $1.6 billion and represent 16% of gross revenues.

Total processed transactions, which represent transactions processed by VisaNet for the 12 months ended September 30, 2010, totaled 45.4 billion, a 14% increase over the prior year.

Total operating expenses on a GAAP basis were $3.5 billion for the full-year, a 3% increase over the prior year.

Visa’s GAAP effective tax rate was 37% for the twelve months ended September 30, 2010, excluding the revaluation of the Visa Europe put option.

Notable Events:

As previously disclosed, on October 4, 2010, Visa entered into a settlement agreement with the U.S. Department of Justice (DOJ) and the attorneys general of seven states to resolve antitrust investigations into the Company’s merchant acceptance rules in the U.S. The DOJ issued a civil investigative demand to Visa in 2008, seeking information about certain Visa acceptance rules, including those related to surcharging and discounting. Both investigations ended with a consent decree that sets forth the terms of the settlement, subject to court approval. There is no monetary obligation associated with the DOJ settlement.

On October 8, 2010, the Company deposited $800 million into the litigation escrow account previously established under the Company’s retrospective responsibility plan. The deposit into the escrow account reduced the conversion rate applicable to the Company’s class B common stock from 0.5550 to 0.5102. On an as-converted basis, the deposit had the effect of a repurchase of approximately 11.0 million shares of class A common stock from the Company’s class B shareholders.

On October 20, 2010, the Board of Directors declared a quarterly dividend in the aggregate amount of $0.15 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 December 7, 2010, to all holders of record of the Company’s class A, class B and class C common stock as of November 19, 2010. In addition, the Company announced it has successfully completed its $1 billion share repurchase plan authorized in October 2009. In the fourth fiscal quarter of 2010, the Company repurchased a total of 4.6 million shares of class A common stock at an average price of $72.29 per share. Under the full plan, a total of 12.9 million shares of class A common stock was repurchased at an average price of $77.48 per share.

Today, the Company announces that its Board of Directors has authorized a new $1 billion class A common stock repurchase plan. The authorization will be in place through September 30, 2011, and is subject to extension or expansion at the determination of Visa’s Board of Directors.

Financial Outlook:

Visa Inc. affirms its financial outlook for the following metric for 2011:

•

Annual diluted class A common stock earnings per share growth of greater than 20%.

Visa Inc. updates its financial outlook for the following metric for 2011:

•

Annual free cash flow in excess of $3 billion.

Visa Inc. provides its financial outlook for the following metrics for 2011:

•

Annual net revenue growth: 11% to 15% range;

•

Volume and support incentives as a percent of gross revenues: 16% to 16.5% range;

•

Advertising, marketing and promotion expenses: Less than $900 million;

•

Annual operating margin: About 60%;

•

GAAP tax rate: 36.5% to 37% range; and

•

Capital expenditures: Between $250-$275 million.

Fiscal Fourth Quarter and Full-Year 2010 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 Inc.

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 digital currency. Underpinning digital currency is one of the world’s most advanced processing networks – VisaNet - that is capable of handling more than 10,000 transactions a second, with fraud protection for consumers and guaranteed 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 www.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” and similar references to the future. Examples of such forward-looking statements include, but are not limited to, statements we make about revenue, incentive payments, expenses, operating margin, earnings per share, free cash flow, tax rate and capital expenditures 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:

•

the impact of the U.S. Wall Street Reform and Consumer Protection Act, including:

•

its effect on issuers’ and retailers’ network selection for debit transactions;

•

its effect on our financial institution customers and on debit interchange rates;

•

its effect on other product categories, such as credit; and

•

the adoption of similar and related laws and regulations elsewhere;

•

developments in current or future disputes, including:

•

interchange;

•

currency conversion; and

•

tax;

•

the risk that CyberSource’s business will not be successfully integrated with Visa’s, including:

•

the costs associated with the acquisition; and

•

slowed growth of eCommerce;

•

macroeconomic and industry factors such as:

•

currency exchange rates;

•

global economic, political, health and other conditions;

•

competitive pressure on customer pricing and in the payments industry generally;

•

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

•

disintermediation from the payments value stream through government actions or bilateral agreements;

•

systemic developments, such as:

•

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

•

account data breaches involving card data stored by us or third parties;

•

increased fraudulent and other illegal activities involving our cards;

•

failure to maintain interoperability between our and Visa Europe’s authorization and clearing and settlement systems;

•

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

•

loss of organizational effectiveness or key employees;

•

changes in accounting principles or treatments; and

the other factors discussed under the heading “Risk Factors” herein and in our most recent Annual Report on Form 10-K and our most recent Quarterly Reports on Form 10-Q. 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, 415-932-2213, ir@visa.com

Media Relations: Will Valentine, 415-932-2564, globalmedia@visa.com

Visa Inc.

Selected Consolidated Statements of Operations

(unaudited)


	Three Months Ended September 30,						Twelve Months Ended September 30,
	2010			2009			2010			2009
	(in millions, except per share data)
Operating Revenues
Service revenues	$	912		$	808		$	3,497		$	3,174
Data processing revenues		840			727			3,125			2,430
International transaction revenues		619			507			2,290			1,916
Other revenues		167			163			713			625
Volume and support incentives		(421	)		(326	)		(1,560	)		(1,234	)

Total operating revenues		2,117			1,879			8,065			6,911


Operating Expenses
Personnel		353			355			1,222			1,228
Network, EDP and communications		119			111			425			393
Advertising, marketing and promotion		233			283			964			918
Professional and consulting fees		108			86			286			268
Depreciation and amortization		78			61			265			226
Administrative and other		117			113			359			338
Litigation provision		(4	)		1			(45	)		2

Total operating expenses		1,004			1,010			3,476			3,373

Operating income		1,113			869			4,589			3,538


Other Income (Expense)
Equity in earnings of unconsolidated affiliates		(2	)		—			(7	)		—
Interest expense		(15	)		(25	)		(72	)		(115	)
Investment income, net		20			18			49			575
Other		79			1			79			2

Total other income (expense)		82			(6	)		49			462

Income before income taxes		1,195			863			4,638			4,000
Income tax expense		422			349			1,674			1,648

Net income including non-controlling interest		773			514			2,964			2,352
Loss attributable to non-controlling interest		1			—			2			1

Net income attributable to Visa Inc.	$	774		$	514		$	2,966		$	2,353


Basic earnings per share
Class A common stock	$	1.06		$	0.69		$	4.03		$	3.10

Class B common stock	$	0.59		$	0.41		$	2.31		$	1.98

Class C common stock	$	1.06		$	0.69		$	4.03		$	3.10


Basic weighted average shares outstanding
Class A common stock		492			462			482			451

Class B common stock		245			245			245			245

Class C common stock		98			138			112			148


Diluted earnings per share
Class A common stock	$	1.06		$	0.69		$	4.01		$	3.10

Class B common stock	$	0.59		$	0.41		$	2.30		$	1.98

Class C common stock	$	1.06		$	0.69		$	4.01		$	3.10


Diluted weighted average shares outstanding
Class A common stock		731			748			739			759

Class B common stock		245			245			245			245

Class C common stock		98			138			112			148

Visa Inc.

Selected Consolidated Balance Sheets

(unaudited)


	September 30, 2010			September 30, 2009
	(in millions, except par value data)
Assets
Cash and cash equivalents	$	3,867		$	4,617
Restricted cash - litigation escrow		1,866			1,365
Investment securities
Trading		60			59
Available-for-sale		124			56
Settlement receivable		402			605
Accounts receivable		476			444
Customer collateral		899			812
Current portion of volume and support incentives		175			214
Current portion of deferred tax assets		623			703
Prepaid expenses and other current assets		242			366


Total current assets		8,734			9,241

Restricted cash - litigation escrow		70			350
Investment securities, available-for-sale		24			168
Volume and support incentives		101			102
Property, equipment and technology, net		1,357			1,204
Other assets		197			125
Intangible assets, net		11,478			10,883
Goodwill		11,447			10,208


Total assets	$	33,408		$	32,281


Liabilities
Accounts payable	$	137		$	156
Settlement payable		406			634
Customer collateral		899			812
Accrued compensation and benefits		370			396
Volume and support incentives		418			284
Accrued liabilities		625			754
Current portion of long-term debt		12			12
Current portion of accrued litigation		631			1,394


Total current liabilities		3,498			4,442

Long-term debt		32			44
Accrued litigation		66			323
Deferred tax liabilities		4,181			3,807
Other liabilities		617			472


Total liabilities		8,394			9,088


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, 493 and 470 shares issued and outstanding at September 30, 2010, and September 30, 2009, respectively		—			—
Class B common stock, $0.0001 par value, 622 shares authorized, 245 shares issued and outstanding at September 30, 2010, and September 30, 2009		—			—
Class C common stock, $0.0001 par value, 1,097 shares authorized, 97 and 131 shares issued and outstanding at September 30, 2010, and September 30, 2009, respectively		—			—
Additional paid-in capital		20,794			21,160
Class C treasury stock		—			(2	)
Accumulated income		4,368			2,219
Accumulated other comprehensive loss, net
Investment securities, available-for-sale		3			10
Defined benefit pension and other postretirement plans		(115	)		(136	)
Derivative instruments		(40	)		(58	)
Foreign currency translation gain (loss)		1			(4	)

Total accumulated other comprehensive loss, net		(151	)		(188	)

Total Visa Inc. stockholders’ equity		25,011			23,189
Non-controlling interest		3			4
Total equity	$	25,014		$	23,193

Total liabilities and equity	$	33,408		$	32,281

Visa Inc.

Consolidated Statements Of Cash Flows

(unaudited)


	For the Years Ended September 30,
	2010			2009			2008
	(in millions)
Operating Activities
Net income including non-controlling interest	$	2,964		$	2,352		$	804
Adjustments to reconcile net income including non-controlling interest to net cash provided by operating activities:
Gain on sale of other investments		(6	)		(473	)		—
Depreciation and amortization of property, equipment and technology		265			226			237
Share-based compensation		131			115			74
Tax benefit for share-based compensation		(14	)		(7	)		—
Restricted stock instruments settled in cash for taxes		(14	)		(22	)		—
Fair value adjustment for liability under the Framework Agreement		—			—			(35	)
Fair value adjustment for the Visa Europe put option		(79	)		—			—
Interest earned on litigation escrow, net of tax		(1	)		(15	)		(13	)
Net recognized (gain) loss on investment securities, including other-than-temporary impairment		(21	)		5			34
Asset impairment		3			11			34
Loss on disposal of property, equipment and technology		—			2			—
Amortization of volume and support incentives		1,560			1,234			1,161
Litigation provision and accretion		(18	)		95			1,601
Equity in earnings of unconsolidated affiliates		7			—			(1	)
Deferred income taxes		249			297			(27	)
Change in operating assets and liabilities:
Trading securities		(1	)		34			—
Accounts receivable		(7	)		(102	)		(24	)
Settlement receivable		203			526			(543	)
Volume and support incentives		(1,386	)		(1,136	)		(1,378	)
Other assets		(41	)		(109	)		(158	)
Accounts payable		(21	)		(3	)		(10	)
Settlement payable		(245	)		(461	)		451
Accrued compensation and benefits		(26	)		(23	)		(115	)
Accrued and other liabilities		191			213			(33	)
Accrued litigation		(1,002	)		(2,201	)		(1,525	)
Member deposits		—			—			(3	)


Net cash provided by operating activities		2,691			558			531


Investing Activities

Investment securities, available-for-sale:
Purchases		(11	)		(7	)		(1,509	)
Proceeds from sales and maturities		67			297			2,458
Distributions from money market investment		89			884			—
Reclassification of money market investment		—			—			(983	)
Purchases of / contributions to other investments		(17	)		(48	)		(25	)
Proceeds from sale of other investments		9			1,008			—
Dividends/distributions from other investments		2			2			22
Acquisition, net of cash received of $147		(1,805	)		—			—
Cash acquired through reorganization		—			—			1,002
Purchases of property, equipment and technology		(241	)		(306	)		(415	)
Proceeds from disposal of property, equipment and technology		3			—			4


Net cash (used in) provided by investing activities		(1,904	)		1,830			554


Financing Activities
Proceeds from short-term borrowing		—			—			2
Payments on short-term borrowing		—			—			(2	)
Proceeds from sale of common stock, net of issuance costs of $550		—			—			19,100
Tax benefit for share-based compensation		14			7			—
Cash proceeds from exercise of stock options		56			32			—
Funding of litigation escrow account - Retrospective Responsibility Plan		(500	)		(1,800	)		(3,000	)
Payments from litigation escrow account - Retrospective Responsibility Plan		280			2,028			1,085
Funding of tax escrow account for income tax withheld on stock proceeds		—			—			(116	)
Payments from tax escrow account		—			—			116
Payment for redemption of stock		—			(2,646	)		(13,446	)
Dividends paid		(368	)		(318	)		(93	)
Principal payments on debt		(12	)		(50	)		(18	)
Principal payments on capital lease obligations		(12	)		(4	)		(4	)
Repurchase of class A common stock		(1,000	)		—			—


Net cash (used in) provided by financing activities		(1,542	)		(2,751	)		3,624


Effect of exchange rate changes on cash and cash equivalents		5			1			(5	)

(Decrease) increase in cash and cash equivalents		(750	)		(362	)		4,704
Cash and cash equivalents at beginning of year		4,617			4,979			275


Cash and cash equivalents at end of year	$	3,867		$	4,617		$	4,979


Supplemental Disclosure of Cash Flow Information
Income taxes paid, net of refunds	$	1,291		$	1,172		$	678
Amounts included in accounts payable and accrued and other liabilities related to purchases of property, equipment and technology	$	31		$	18		$	32
Interest payments on debt	$	4		$	7		$	8
Common stock issued in reorganization	$	—		$	—		$	17,935
Assets acquired in joint venture with note payable and equity interest issued	$	—		$	22		$	—

Fiscal 2009 and 2010 Quarterly Results of Operations

US$ in millions

(unaudited)


	Fiscal 2009 Quarter Ended September 30, 2009			Fiscal 2010 Quarter Ended
	Fiscal 2009 Quarter Ended September 30, 2009			December 31, 2009			March 31, 2010			June 30, 2010			September 30, 2010
Operating Revenues
Service revenues	$	808		$	827		$	885		$	873		$	912
Data processing revenues		727			765			728			792			840
International transaction revenues		507			552			545			574			619
Other revenues		163			190			173			183			167
Volume and support incentives		(326	)		(374	)		(372	)		(393	)		(421	)

Total operating revenues		1,879			1,960			1,959			2,029			2,117

Operating Expenses
Personnel ⁽¹⁾		355			274			310			285			353
Network, EDP and communications		111			105			98			103			119
Advertising, marketing and promotion		283			216			238			277			233
Professional and consulting fees ⁽¹⁾		86			51			50			77			108
Depreciation and amortization		61			62			62			63			78
Administrative and other		113			78			77			87			117
Litigation provision		1			(43	)		2			—			(4	)

Total operating expenses		1,010			743			837			892			1,004

Operating income		869			1,217			1,122			1,137			1,113


Other Income (Expense)
Equity in earnings of unconsolidated affiliates		—			—			(2	)		(3	)		(2	)
Interest expense		(25	)		(16	)		(28	)		(13	)		(15	)
Investment income, net		18			5			23			1			20
Other		1			2			(2	)		—			79

Total other income (expense)		(6	)		(9	)		(9	)		(15	)		82

Income before income taxes		863			1,208			1,113			1,122			1195
Income tax expense		349			445			401			406			422

Net income including non-controlling interest		514			763			712			716			773
Loss attributable to non-controlling interest ⁽²⁾		—			—			1			—			1

Net income attributable to Visa Inc.	$	514		$	763		$	713		$	716		$	774

⁽¹⁾

Certain reclassifications, not affecting net income attributable to Visa, have been made to fiscal 2009 quarterly information to conform to the current period presentation format, including the reclassification of contractor expense, which was previously reported in professional and consulting fees, to personnel.

⁽²⁾

The Company began to report non-controlling interest (previously referred to as minority interest) as a component of equity in the first quarter of fiscal 2010 and has updated all requisite financial statements, including the statement of operations, for all comparable periods presented as required under Accounting Standards Codification 810.

Adjusted Net Income and Earnings Per Share

US$ in millions, except per share data

Management believes the presentation of adjusted net income and diluted earnings per share provides a clearer understanding of our operating performance for the periods. The revaluation of the Put option resulted in non-cash, non-operating income during the three months ended September 30, 2010. The reduction in value was primarily the result of declines in Visa’s price-to-earnings ratio in the second half of fiscal 2010 and does not reflect any change in the likelihood that Visa Europe will exercise its option. Management therefore believes that the resulting non-operating income is not indicative of Visa’s performance in the current or future periods.


	Three Months Ended September 30, 2010			Twelve Months Ended September 30, 2010
Net income attributable to Visa Inc. (as reported)	$	774		$	2,966
Revaluation of Visa Europe Put option ⁽¹⁾		(79	)		(79	)

Adjusted net income attributable to Visa Inc.	$	695		$	2,887
Weighted average number of diluted shares outstanding (as reported)		731			739
Adjusted diluted earnings per share	$	0.95		$	3.91

⁽¹⁾	Non-cash, non-operating income resulting from the revaluation is not subject to tax.

LOGO

Operational Performance Data

The tables below provide information regarding the available operational results for the 3 months ended September 30, 2010, as well as the prior four quarterly reporting periods and the 12 months ended September 30, 2010 and 2009, for cards carrying the Visa, Visa Electron and Interlink brands. Included is a new table with information on the number of billable transactions processed on CyberSource’s network. Visa Inc. completed its acquisition of CyberSource Corporation on July 21, 2010.

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 September 30, 2010
	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	$	323		15.1	%		10.9	%	$	211		15.4	%		11.5	%		2,659	$	113		14.6	%		9.8	%		584
Canada		53		10.2	%		7.2	%		49		10.2	%		7.2	%		448		5		10.6	%		7.5	%		9
CEMEA		164		22.3	%		23.5	%		27		27.2	%		28.3	%		418		137		21.4	%		22.6	%		862
LAC		204		22.5	%		20.3	%		69		24.4	%		24.2	%		1,639		135		21.5	%		18.4	%		873
US		574		12.4	%		12.4	%		473		13.4	%		13.4	%		9,755		101		7.7	%		7.7	%		875

Visa Inc.		1,318		15.6	%		14.2	%		828		15.0	%		13.8	%		14,919		490		16.7	%		15.0	%		3,203

Visa Credit Programs
US	$	218		3.6	%		3.6	%	$	207		6.4	%		6.4	%		2,431	$	11		-31.6	%		-31.6	%		17
Rest of World		340		15.3	%		12.3	%		294		14.1	%		11.1	%		3,815		46		23.9	%		20.8	%		157

Visa Inc.		558		10.4	%		8.7	%		501		10.8	%		9.1	%		6,246		57		7.5	%		5.6	%		174

Visa Debit Programs
US	$	356		18.5	%		18.5	%	$	266		19.6	%		19.6	%		7,324	$	90		15.6	%		15.6	%		858
Rest of World		404		20.8	%		18.7	%		61		34.2	%		32.3	%		1,349		343		18.7	%		16.5	%		2,171

Visa Inc.		760		19.7	%		18.6	%		327		22.0	%		21.7	%		8,673		433		18.0	%		16.3	%		3,029


	For the 3 Months Ended June 30, 2010
	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	$	309		19.3	%		12.5	%	$	198		19.9	%		12.7	%		2,580	$	111		18.1	%		12.3	%		581		458		545
Canada		53		17.5	%		7.5	%		48		18.1	%		8.1	%		433		5		11.5	%		2.1	%		9		24		31
CEMEA		154		27.0	%		25.6	%		24		30.9	%		28.6	%		394		130		26.3	%		25.1	%		852		203		204
LAC		185		23.1	%		16.3	%		62		25.5	%		20.8	%		1,519		123		21.9	%		14.2	%		849		353		382
US		567		12.1	%		12.1	%		469		13.8	%		13.8	%		9,511		97		4.8	%		4.8	%		855		497		675

Visa Inc.		1,268		17.3	%		14.1	%		802		16.8	%		14.1	%		14,437		466		18.0	%		14.2	%		3,145		1,535		1,837

Visa Credit Programs
US	$	214		2.3	%		2.3	%	$	204		5.9	%		5.9	%		2,346	$	10		-39.4	%		-39.4	%		17		210		274
Rest of World		320		18.7	%		11.7	%		277		18.6	%		11.6	%		3,679		42		19.2	%		12.7	%		155		436		499

Visa Inc.		534		11.5	%		7.7	%		481		12.9	%		9.1	%		6,025		52		0.1	%		-3.6	%		171		646		772

Visa Debit Programs
US	$	353		19.1	%		19.1	%	$	266		20.6	%		20.6	%		7,165	$	87		14.8	%		14.8	%		838		287		402
Rest of World		382		24.5	%		19.4	%		55		38.0	%		31.5	%		1,246		327		22.4	%		17.6	%		2,136		601		664

Visa Inc.		735		21.8	%		19.3	%		321		23.3	%		22.4	%		8,412		414		20.7	%		17.0	%		2,974		889		1,065

Operational Performance Data


	For the 3 Months Ended March 31, 2010
	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	$	296		29.5	%		12.7	%	$	195		32.3	%		13.8	%		2,459	$	102		24.5	%		10.6	%		553		452		537
Canada		47		30.4	%		5.5	%		43		34.2	%		8.6	%		387		4		-0.1	%		-19.1	%		9		24		31
CEMEA		140		31.0	%		19.3	%		23		36.8	%		22.6	%		357		118		30.0	%		18.7	%		771		196		199
LAC		175		36.1	%		15.8	%		58		38.1	%		20.1	%		1,437		117		35.1	%		13.8	%		819		343		372
US		518		10.7	%		10.7	%		427		12.8	%		12.8	%		8,573		91		2.2	%		2.2	%		755		509		685

Visa Inc.		1,176		21.5	%		12.7	%		745		20.9	%		13.6	%		13,213		431		22.6	%		11.2	%		2,906		1,524		1,824

Visa Credit Programs
US	$	194		-0.8	%		-0.8	%	$	182		3.4	%		3.4	%		2,121	$	12		-39.6	%		-39.6	%		16		217		280
Rest of World		305		29.3	%		10.9	%		266		30.8	%		12.2	%		3,459		39		19.9	%		2.9	%		138		431		493

Visa Inc.		499		15.6	%		6.1	%		449		18.0	%		8.4	%		5,580		50		-2.2	%		-11.4	%		154		648		773

Visa Debit Programs
US	$	324		19.1	%		19.1	%	$	245		20.9	%		20.9	%		6,452	$	79		13.6	%		13.6	%		738		292		405
Rest of World		353		33.7	%		17.3	%		51		53.0	%		29.7	%		1,181		302		30.9	%		15.5	%		2,013		584		646

Visa Inc.		677		26.3	%		18.2	%		296		25.5	%		22.4	%		7,633		381		26.8	%		15.1	%		2,751		876		1,051

	For the 3 Months Ended December 31, 2009
	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	$	318		30.6	%		19.0	%	$	197		22.1	%		10.1	%		2,541	$	121		47.4	%		36.8	%		570		442		531
Canada		52		20.5	%		2.2	%		48		24.0	%		5.2	%		430		4		-10.1	%		-23.8	%		9		24		31
CEMEA		146		8.4	%		9.0	%		23		20.9	%		14.6	%		353		124		6.4	%		8.0	%		794		192		196
LAC		191		33.0	%		13.0	%		64		37.5	%		16.0	%		1,516		127		30.9	%		11.4	%		873		331		359
US		530		5.0	%		5.0	%		438		7.3	%		7.3	%		8,755		92		-4.7	%		-4.7	%		759		511		691

Visa Inc.		1,238		15.6	%		9.8	%		770		14.2	%		8.7	%		13,596		468		18.0	%		11.7	%		3,004		1,500		1,808

Visa Credit Programs
US	$	215		-6.9	%		-6.9	%	$	201		-1.0	%		-1.0	%		2,373	$	14		-49.8	%		-49.8	%		19		227		297
Rest of World		317		19.5	%		6.6	%		278		22.0	%		8.4	%		3,611		39		3.7	%		-4.8	%		141		425		488

Visa Inc.		532		7.2	%		0.7	%		479		11.2	%		4.3	%		5,983		53		-19.1	%		-23.0	%		160		653		784

Visa Debit Programs
US	$	316		15.0	%		15.0	%	$	238		15.4	%		15.4	%		6,382	$	78		13.6	%		13.6	%		740		283		394
Rest of World		390		30.2	%		20.4	%		53		43.1	%		24.7	%		1,230		337		28.4	%		19.7	%		2,104		564		630

Visa Inc.		706		22.9	%		17.9	%		291		19.7	%		17.0	%		7,612		415		25.3	%		18.5	%		2,845		847		1,024

	For the 3 Months Ended September 30, 2009
	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	$	281		12.5	%		10.6	%	$	183		12.0	%		8.8	%		2,475	$	98		13.4	%		14.0	%		534		433		521
Canada		48		-3.3	%		-3.1	%		44		-1.0	%		-0.8	%		412		4		-23.1	%		-22.9	%		9		24		31
CEMEA		134		-6.5	%		5.2	%		21		0.7	%		5.5	%		320		113		-7.7	%		5.1	%		738		187		190
LAC		166		4.6	%		11.4	%		55		9.1	%		14.7	%		1,366		111		2.6	%		9.8	%		815		323		350
US		511		-2.7	%		-2.7	%		417		-1.0	%		-1.0	%		8,402		93		-9.9	%		-9.9	%		774		495		673

Visa Inc.		1,140		1.2	%		3.1	%		720		2.8	%		2.7	%		12,975		420		-1.5	%		3.9	%		2,871		1,462		1,765

Visa Credit Programs
US	$	210		-14.2	%		-14.2	%	$	195		-8.6	%		-8.6	%		2,299	$	16		-51.6	%		-51.6	%		21		230		301
Rest of World		295		5.1	%		4.9	%		258		7.8	%		6.5	%		3,474		37		-10.1	%		-4.7	%		140		423		485

Visa Inc.		505		-3.9	%		-4.0	%		452		0.1	%		-0.6	%		5,773		53		-28.3	%		-25.9	%		161		652		786

Visa Debit Programs
US	$	300		7.4	%		7.4	%	$	223		6.8	%		6.8	%		6,102	$	78		8.9	%		8.9	%		753		265		372
Rest of World		334		4.1	%		11.7	%		45		13.3	%		18.2	%		1,100		289		2.8	%		10.7	%		1,957		544		607

Visa Inc.		635		5.6	%		9.6	%		268		7.9	%		8.6	%		7,202		367		4.0	%		10.3	%		2,710		809		979

Operational Performance Data


	For the 12 Months Ended September 30, 2010
	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	$	1,247		23.2	%		13.7	%	$	800		22.0	%		12.0	%		10,240	$	447		25.4	%		16.9	%		2,287
Canada		204		18.9	%		5.6	%		187		20.6	%		7.2	%		1,698		17		2.8	%		-9.3	%		35
CEMEA		605		21.6	%		19.2	%		97		28.7	%		23.5	%		1,523		508		20.3	%		18.4	%		3,279
LAC		754		28.2	%		16.4	%		253		30.8	%		20.3	%		6,111		502		26.9	%		14.5	%		3,413
US		2,189		10.1	%		10.1	%		1,808		11.8	%		11.8	%		36,594		380		2.4	%		2.4	%		3,243

Visa Inc.		5,000		17.4	%		12.7	%		3,145		16.6	%		12.5	%		56,165		1,855		18.7	%		13.1	%		12,258

Visa Credit Programs
US	$	841		-0.6	%		-0.6	%	$	794		3.6	%		3.6	%		9,270	$	46		-41.5	%		-41.5	%		69
Rest of World		1,282		20.3	%		10.4	%		1,116		20.9	%		10.8	%		14,564		166		16.5	%		7.7	%		590

Visa Inc.		2,122		11.0	%		5.7	%		1,910		13.0	%		7.7	%		23,834		212		-4.3	%		-9.1	%		659

Visa Debit Programs
US	$	1,348		18.0	%		18.0	%	$	1,014		19.2	%		19.2	%		27,323	$	334		14.4	%		14.4	%		3,174
Rest of World		1,529		26.9	%		19.0	%		220		41.4	%		29.6	%		5,007		1,309		24.7	%		17.3	%		8,425

Visa Inc.		2,877		22.5	%		18.5	%		1,235		22.6	%		20.9	%		32,331		1,643		22.5	%		16.7	%		11,599


	For the 12 Months Ended September 30, 2009
	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	$	1,012		2.7	%		10.5	%	$	656		2.1	%		9.7	%		9,193	$	357		3.9	%		12.2	%		2,152		433		521
Canada		172		-13.5	%		-1.4	%		155		-11.9	%		0.3	%		1,549		17		-25.6	%		-14.5	%		35		24		31
CEMEA		498		-1.1	%		15.4	%		75		0.5	%		12.2	%		1,189		423		-1.3	%		16.0	%		2,833		187		190
LAC		589		-2.2	%		16.2	%		193		0.0	%		17.2	%		5,295		395		-3.2	%		15.7	%		3,236		323		350
US		1,989		-3.2	%		-3.2	%		1,617		-1.7	%		-1.7	%		32,032		371		-9.0	%		-9.0	%		2,949		495		673

Visa Inc.		4,260		-1.9	%		4.6	%		2,697		-1.3	%		2.7	%		49,259		1,563		-3.0	%		7.9	%		11,205		1,462		1,765

Visa Credit Programs
US	$	846		-13.4	%		-13.4	%	$	766		-8.7	%		-8.7	%		9,047	$	80		-42.1	%		-42.1	%		92		230		301
Rest of World		1,066		-2.9	%		6.9	%		923		-1.5	%		7.8	%		13,090		142		-11.4	%		1.4	%		557		423		485

Visa Inc.		1,911		-7.8	%		-2.7	%		1,690		-4.9	%		0.0	%		22,136		222		-25.6	%		-19.3	%		648		652		786

Visa Debit Programs
US	$	1,143		6.0	%		6.0	%	$	851		5.4	%		5.4	%		22,985	$	292		7.8	%		7.8	%		2,858		265		372
Rest of World		1,205		1.2	%		16.8	%		156		4.7	%		21.4	%		4,137		1,049		0.7	%		16.1	%		7,699		544		607

Visa Inc.		2,348		3.5	%		11.5	%		1,007		5.3	%		7.8	%		27,122		1,341		2.1	%		14.3	%		10,557		809		979

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 reported quarterly by Visa’s members on their operating certificates and is subject to verification by Visa. On occasion, members may update previously submitted information.

Visa’s CEMEA region is comprised of countries in Central Europe, the Middle East and Africa. For the 3 months ended September, 2009, Pakistan and Afghanistan were moved from the AP to CEMEA region. 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.

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
Sep 30, 2010		16	%		16	%
Jun 30, 2010		20	%		17	%
Mar 31, 2010		19	%		12	%
Dec 31, 2009		8	%		2	%
Sep 30, 2009		(9	%)		(5	%)

12 Months Ended
Sep 30, 2010		16	%		12	%
Sep 30, 2009		(11	%)		(5	%)

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. CyberSource transactions are reported in the next section.


Period	Processed Transactions (millions)		Growth
3 Months Ended
Sep 30, 2010		12,119		16	%
Jun 30, 2010		11,721		14	%
Mar 31, 2010		10,648		14	%
Dec 31, 2009		10,924		12	%
Sep 30, 2009		10,463		9	%

12 Months Ended
Sep 30, 2010		45,411		14	%
Sep 30, 2009		39,885		8	%

Operational Performance Data

4. CyberSource Transactions

The table below represents billable transactions processed on CyberSource’s network that generate revenue for CyberSource.


Period	Billable Transactions (millions)		Growth
3 Months Ended
Sep 30, 2010		829		36	%
Jun 30, 2010		759		31	%
Mar 31, 2010		738		34	%
Dec 31, 2009		707		29	%
Sep 30, 2009		611		30	%

12 Months Ended
Sep 30, 2010		3,032		32	%
Sep 30, 2009		2,289		29	%