EX-99.2 3 dex992.htm PRESENTATION OF VISA INC. Presentation of Visa Inc.
Visa Inc.
Fiscal Third Quarter
Financial Results
July 27, 2011
Exhibit 99.2

Fiscal Third Quarter 2011 Financial Results
2
Forward-Looking Information
This presentation 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 “expect,” “ will,” “continue” and similar references to the future. Examples of such forward-looking statements
include, but are not limited  to, statements we make about gross and net revenue, incentive payments, expenses, operating  margin, tax rate, earnings per
share, capital expenditures, free cash flow and the growth of those items.
By their nature, forward-looking statements: (i) speak only as of the date they are made, (ii) are 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 timing and new laws, regulations and marketplace barriers, particularly the rules promulgated under the Wall Street Reform and
Consumer Protection Act, including those affecting:
–
rules expanding issuers’ and retailers’ choice among debit payment networks;
–
rules capping debit interchange rates;
–
the spread of regulation of debit payments to credit and other product categories;
–
the spread of U.S. regulations to other countries;
–
rules about consumer privacy and data use and security; and
–
designation as a systemically important payment system;
•
developments in current or future disputes and our ability to absorb their impact, including interchange, currency conversion, and tax;
•
macroeconomic factors such as:
–
global economic, political, health, environmental and other conditions;
–
cross-border activity and currency exchange rates; and
–
material changes in our clients’ performance compared to our estimates;
•
industry and systemic developments, such as:
–
competitive pressure on client pricing and in the payments industry generally;
–
bank and merchant consolidation and their increased focus on payment card costs;
–
disintermediation from the payments value stream through government actions or bilateral agreements;
–
adverse changes in our relationships and reputation;
–
our clients’ failure to fund settlement obligations we have guaranteed;
–
disruption of our transaction processing systems or the inability to process transactions efficiently;
–
rapid technological developments;
–
account data breaches and increased fraudulent and other illegal activity involving our cards; and
–
issues arising at Visa Europe, including failure to maintain interoperability between our 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;
•
failure to integrate successfully CyberSource, PlaySpan, Fundamo  or other acquisitions;
•
changes in accounting principles or treatment; and
the other factors discussed in our most recent Annual Report on Form 10-K on file with the U.S. Securities and Exchange Commission. 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.

Solid Fiscal Third Quarter Results
•
Strong operating revenues of $2.3 billion, up 14% over prior year
•
Adjusted quarterly net income of $883 million, up 23%, and adjusted diluted
earnings per share of $1.26, up 29% over prior year
•
Continued positive secular trends and spending momentum contributed to 
double-digit growth year over year in key underlying business drivers for the
sixth consecutive quarter
•
Repurchased 13.7 million shares at an average price of $77.36 for a total
cost of $1.1 billion.
Fiscal Third Quarter 2011 Financial Results
3

Fiscal Third Quarter 2011 Financial Results
4
Quarter ended March
US$ in billions, nominal, except percentages
Payments Volume
ROW =
2010
2011
YOY Change
(nominal)
15%
17%
16%
YOY Change
(constant)
13%
11%
16%
Note: Figures may not sum due to rounding. Growth rates calculated based on whole numbers, not rounded numbers. From time to time,
previously submitted volume information may be updated. Prior year volume information presented has not been updated, as changes made are
not material. Constant dollar growth rates exclude the impact of foreign currency fluctuations against the U.S. dollar in measuring performance.
ROW  51
ROW
318
ROW
318
U.S.
427
U.S.
477
ROW
385
U.S.
182
266
ROW
U.S.
245
U.S.
278
ROW  68
U.S.
199
745
862
449
517
296
345
Total Visa Inc.
Credit
Debit
Rest of World

Fiscal Third Quarter 2011 Financial Results
5
ROW  55
Quarter ended June
US$ in billions, nominal, except percentages
Payments Volume
ROW
333
ROW
348
U.S.
469
U.S.
518
ROW
422
U.S.
204
277
ROW
U.S.
224
U.S.
266
U.S.
295
ROW 75
Note: Current quarter payments volume and other select metrics are provided in the operational performance data supplement to provide more
recent operating data. Service revenues continue to be recognized based on payments volume in the prior quarter. From time to time, reported
payments volume information may be updated to reflect revised client submissions or other adjustments. Prior year volume information presented
has not been updated, as changes made are not material. Figures may not sum due to rounding.
YOY Change
(nominal)
19%
15%
17%
YOY Change
(constant)
13%
13%
14%
ROW
=
Rest
of
World
2010
2011
Total Visa Inc.
Credit
Debit
802
941
481
571
321
369

Fiscal Third Quarter 2011 Financial Results
6
Quarter ended March
US$ in billions, nominal, except percentages
Payments Volume
Note: Growth rates calculated based on whole numbers, not rounded numbers. From time to time, previously submitted volume information may be
updated. Prior year volume information presented has not been updated, as changes made are not material. Constant dollar growth rates exclude
the impact of foreign currency fluctuations against the U.S. dollar in measuring performance.
2010
2011
YOY Change
(nominal)
12%
18%
32%
11%
34%
YOY Change
(constant)
12%
12%
26%
7%
31%
427
477
195
230
58
77
43
48
23
30
United States
Asia Pacific
Latin America and
Caribbean
Canada
Central and Eastern
Europe, Middle East
and Africa

Fiscal Third Quarter 2011 Financial Results
7
Quarter ended June
US$ in billions, nominal, except percentages
Payments Volume
YOY Change
(nominal)
10%
24%
38%
14%
43%
YOY Change
(constant)
10%
14%
29%
8%
37%
2010
2011
469
518
198
62
246
86
48
55
24
35
United States
Asia Pacific
Latin America and
Caribbean
Canada
Central and Eastern
Europe, Middle East
and Africa
Note: Current quarter payments volume and other select metrics are provided in the operational performance data supplement to provide more recent
operating
data.
Service
revenues
continue
to
be
recognized
based
on
payments
volume
in
the
prior
quarter.
From
time
to
time,
reported
payments
volume information may be updated to reflect revised client submissions or other adjustments. Prior year volume information presented has not been
updated, as changes made are not material. Figures may not sum due to rounding.

Fiscal Third Quarter 2011 Financial Results
8
11,721
16,118
10,648
17,582
13,038
18,046
12,040
19,400
Total Transactions
Processed
Transactions
Total Transactions
Processed
Transactions
Quarter ended March
in millions, except percentages
Transactions
Note: Processed transactions represent transactions involving Visa, Visa Electron, Interlink and Plus cards processed on Visa’s networks. Total
transactions represent payments and cash transactions as reported by Visa clients on their operating certificates. From time to time, previously
submitted transaction information may be updated. Prior year transaction information presented has not been updated, as changes made are not
material.
Quarter ended June
Debit
65%
Credit
35%
Credit
36%
Debit
64%
Credit
35%
Debit
65%
Credit
35%
Debit
65%
YOY
Change
12%
13%
10%
11%
2010
2011

Fiscal Third Quarter 2011 Financial Results
9
Quarter ended March
in millions, except percentages
Total Cards
YOY
Change
(2)%
6%
2%
Note: From time to time, previously submitted card information may be updated. Prior year card information presented has not been updated, as
changes made are not material.
2010
2011
Credit
Debit
Visa Inc.
774
760
1,870
1,825
1,051
1,110

Fiscal Third Quarter 2011 Financial Results
10
Revenue –
Q3 2011
US$ in millions, except percentages
Gross
Revenues
Incentives
Net Operating
Revenues
YOY
Change
14%
14%
14%
Note: Growth rates calculated based on whole numbers, not rounded numbers.
Fiscal 2010
Fiscal 2011
2,770
2,422
2,029
2,322
(393)
(448)

Fiscal Third Quarter 2011 Financial Results
11
Revenue Detail –
Q3 2011
US$ in millions, except percentages
Service
Revenues
Data
Processing
Revenues
International
Transaction
Revenues
Other
Revenues
YOY
Change
21%
12%
15%
(10)%
Note: Growth rates calculated based on whole numbers, not rounded numbers.
Fiscal 2010
Fiscal 2011
873
1,055
792
886
574
662
183
167

Fiscal Third Quarter 2011 Financial Results
12
Operating Margin –
Q3 2011
US$ in millions, except percentages
YOY
Change
2 ppt
14%
10%
18%
Note: Growth rates calculated based on whole numbers, not rounded numbers.
Fiscal 2010
Fiscal 2011
58%
56%
Operating Margin
2,029
2,322
892
977
1,137
1,345
Net Operating
Revenues
Operating Income
Total Operating
Expenses

Fiscal Third Quarter 2011 Financial Results
13
US$ in millions, except percentages
Personnel
Network
and
Processing
Marketing
Professional
Fees
Depreciation
and
Amortization
General
and
Administrative
YOY
Change
27%
(12)%
(9)%
9%
18%
32%
Note: Growth rates calculated based on whole numbers, not rounded numbers.
Fiscal 2010
Fiscal 2011
Operating Expenses –
Q3 2011
285
363
103
277
91
251
77
84
63
74
87
114

Fiscal Third Quarter 2011 Financial Results
14
Other Income (Expense)
US$ in millions
The following table presents components of our other income (expense).
Three Months Ended
June 30, 2011
Gain on sale of investment in CBSS
85
$                                     
Revaluation of Visa Europe put option
122
                                     
Other
(1)
(9)
                                         
Total other income
198
$                                   
(1)
Amount primarily represents interest expense, other investment income and the accretion associated with
litigation settlements to be paid over periods longer than one year.

Fiscal Third Quarter 2011 Financial Results
15
Other Financial Results
•
Cash, cash equivalents, restricted cash and available-for-sale
investment securities of $6.7 billion at the end of the fiscal third quarter
which
includes
$2.9
billion
of
restricted
cash
in
the
litigation
escrow
account
•
Total free cash flow of $1.4 billion for the fiscal third quarter and
adjusted free cash flow of $1.3 billion after the Fundamo acquisition
•
Capital expenditures of $89 million during the fiscal third quarter
Note: See appendix for reconciliation of adjusted non-GAAP measures to the closest comparable GAAP measures.

Fiscal Third Quarter 2011 Financial Results
16
Less than
$900 million
Marketing expenses
Financial Metrics for Fiscal Year 2011
Annual operating margin
About 60%
Top end of the
16% to 16.5%
range
Client incentives as % of gross revenues
Annual net revenue growth
11% to 15%
range

Fiscal Third Quarter 2011 Financial Results
17
Financial Metrics for Fiscal Year 2011
Capital expenditures
Moderately
above            
$300 million
Annual diluted class A common stock earnings
per share growth
20% +
GAAP tax rate, excluding the revaluation of the
Visa Europe put option
36.5% to 37%
range
Annual free cash flow
$3 billion +

Fiscal Third Quarter 2011 Financial Results
18
Financial Metrics for Fiscal Year 2012
Mid to high
teens
Annual diluted class A common stock earnings
per share growth
Annual net revenue growth
High single to
low double digit
range

Appendix
Reconciliation of
Non-GAAP Measures

Fiscal Third Quarter 2011 Financial Results
Adjusted Net Income and Earnings
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
Visa
Europe
put
option
resulted
in
non-cash,
non-operating
income during the three months ended June 30, 2011. The reduction in the fair value of the put option was primarily the result of
declines
in
our
estimated
long-term
price-to-earnings
ratio
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 recorded during the third
quarter of fiscal 2011 is not indicative of Visa’s performance in the current or future periods.
A1
(1)
Non-cash, non-operating income resulting from the revaluation of this financial instrument is not subject to tax.
(1)
Three Months
Ended June 30,
2011
Nine Months Ended
June 30, 2011
Net income attributable to Visa Inc. (as reported)
1,005
$                     
2,770
$                     
Revaluation of Visa Europe Put option
(122)
                         
(122)
                         
Adjusted net income attributable to Visa Inc.
883
$                        
2,648
$                     
Weighted average number of diluted shares outstanding  (as reported)
704
                           
712
                           
Adjusted diluted earnings per share
1.26
$                       
3.72
$                       
Diluted earnings per share (as reported)
1.43
$                       
3.89
$                       
Impact of the revaluation of Visa Europe put option
0.17
$                       
0.17
$                       

Fiscal Third Quarter 2011 Financial Results
Calculation of Free Cash Flow
US$ in millions
(1) Includes changes in client incentives, trade receivables, settlement receivable/payable, and personnel incentives.
Calculation of Free Cash Flow
US$ in millions
Additions (+) /
Reductions (-) to
Net income
attributable to
Visa Inc.
Net income attributable to Visa Inc. (as reported)
1,005
2,770
Capital Assets
+
Depreciation and amortization
74
211
-
Capital expenditures
(89)
(15)
(236)
(25)
Litigation
+
Litigation provision
-
6
+
Accretion expense
2
9
-
Settlement payments
(70)
(212)
+
Settlement payments funded by litigation escrow
70
2
210
13
Share-based Compensation
+
Share-based compensation
32
122
Pension
+
Pension expense
8
24
-
Pension contribution
-
8
-
24
Taxes
+
Income tax expense
539
1,534
-
Income taxes paid
(236)
303
(1,251)
283
Visa Europe Put Option
-
Fair Value Adjustment
(122)
(122)
Changes in Working Capital
(1)
+/-
Changes in other working capital accounts
206
51
Total Free Cash Flow
1,419
3,116
Less: PlaySpan and Fundamo
Acquisitions
-
Purchase consideration, net of cash received
(106)
(268)
Adjusted Free Cash Flow
1,313
2,848
Three Months Ended
June 30, 2011
Nine Months Ended
June 30, 2011
A2

Fiscal Third Quarter 2011 Financial Results
Impact of PlaySpan Acquisition
US$ in millions, except per share data
The following table presents the impact of the PlaySpan acquisition on Visa’s adjusted diluted earnings per share.
A3
(1)
(2)
(3)
Represents tax rate applicable to PlaySpan.
(4)
(5)
Operating revenues recognized by Visa related to PlaySpan transactions.  Amount primarily represents data
processing revenues.
Operating expenses incurred by Visa related to PlaySpan.  Amounts incurred subsequent to the acquisition
primarily represent personnel, amortization of intangibles and normal operating expenses.
Amount primarily represents professional fees related to closing the transaction and some minor
compensation expense, which are non-deductible for tax purposes.
See slide A1 for a reconciliation of adjusted diluted earnings per share to GAAP diluted earnings per share.
Three Months Ended
June 30, 2011
Net income attributable to Visa Inc. (as reported)
1,005
$                            
Revaluation of Visa Europe put option
(122)
Adjusted net income attributable to Visa Inc.
883
Taxable PlaySpan adjustments:
Less: Operating revenue
(1)
(6)
Addback: Deductible operating expenses
(2)
15
Subtotal of taxable adjustments
9
Tax rate
(3)
40%
Tax impact of adjustments
(4)
Impact of taxable PlaySpan adjustments
5
Addback: Non-deductible adjustments
(4)
3
Impact of PlaySpan
8
Adjusted net income attributable to Visa Inc.
891
$                               
Weighted average number of diluted shares outstanding  (as reported)
704
Adjusted diluted earnings per share, excluding impact of PlaySpan  acquisition
1.27
$                              
Adjusted diluted earnings per share
(5)
1.26
$                              
Impact of PlaySpan acquisition
(0.01)
$                             

Fiscal Third Quarter 2011 Financial Results
Impact of Fundamo Acquisition
US$ in millions, except per share data
The following table presents the impact of the Fundamo acquisition on Visa’s adjusted diluted earnings per share.
(1)
(2)
See slide A1 for a reconciliation of adjusted diluted earnings per share to GAAP diluted earnings per share.
Represents the net operating results of Fundamo recognized by Visa since the acquisition in June 2011.
Three Months Ended
June 30, 2011
Net income attributable to Visa Inc. (as reported)
1,005
$                               
Revaluation of Visa Europe Put option
(122)
Adjusted net income attributable to Visa Inc.
883
After tax impact of Fundamo
(1)
4
Adjusted net income attributable to Visa Inc.
887
$                                  
Weighted average number of diluted shares outstanding  (as reported)
704
Adjusted
diluted
earnings
per
share,
excluding
impact
of
Fundamo
acquisition
1.27
$                                 
Adjusted diluted earnings per share
(2)
1.26
$                                 
Impact of Fundamo acquisition
(0.01)
$                                
A4