 MasterCard Incorporated 2 nd Quarter 2007 Financial Results Conference Call August 1, 2007 Exhibit 99.2 |
 2 2 nd Quarter Financial Results • Delivered record quarterly net income of $195 million and earnings per share of $1.43, on a diluted basis, excluding special items 1 • Achieved quarterly net income of $252 million, or $1.85 per share, on a diluted basis, including special items 1 • Achieved record quarterly net revenue of $997 million, growth of 17.8% primarily due to: – Gross dollar volume growth (13.3% 2 to $555 billion) – Increase in processed transactions (15.2% to 4.6 billion) – Increase in cross-border transaction volumes (17.3%) • Improved operating margin to 27.3% from 17.0% in 2006, excluding special items 1 • Maintained already solid financial position - $2.8 billion of cash, cash equivalents and available-for-sale securities at quarter end 1 See Appendix A for GAAP reconciliation of special items 2 On a local currency basis |
 3 $ 1.85 $ 252 (134) 92 (11) 36 269 27.0% 25 _ 3 268 432 $ 997 Actual 2Q 07 NM _ _ Litigation 108.0 (50) (104) Tax Expense (31.3) (16) (11) Interest Expense _ 25 25 Depreciation and Amortization NM 5 _ Charitable Contribution $ 0.74 $ 101 _ 22 144 17.0% 307 365 $ 846 2Q 06 Adjusted for special items NM 2 Other Income 93.9 $ 1.43 Diluted EPS 93.1 $ 195 Net Income (12.6) 268 Advertising and Marketing 63.6 36 Investment Income 18.2 432 General and Administrative 88.9 10.3 ppt 272 27.3% Operating Income Operating Margin 17.8 $ 997 Net Revenue Adjusted Growth % 2Q 07 Adjusted for special items 2 nd Quarter Selected Financial Performance ($ in millions, except percentages and per share data) a a e d b c a Adjusted for litigation settlements of $3MM and $23MM in 2007 and 2006, respectively b Adjusted for contribution of stock to the MasterCard Foundation of $395MM c Adjusted for interest income on IPO proceeds held for redemption of $7MM d Adjusted for other income related to a settlement agreement to discontinue the company's sponsorship of the 2010 and 2014 World Cup soccer events of $90MM e Net tax effect of all special items in 2006 is negligible NM = Not meaningful See Appendix A for a GAAP reconciliation of special items for the three and six months ended June 30, 2007 and 2006 Note: Figures may not sum due to rounding |
 4 MasterCard Branded Volume (GDV) Second Quarter 2007 Note: Figures may not sum due to rounding 9.8 9.8 255 United States 13.3 16.4 555 Worldwide 15.6 18.2 22 Canada 44.6 41.1 10 South Asia/Middle East/Africa (SAMEA) 15.1 18.5 73 Asia Pacific 22.1 27.3 37 Latin America 14.3 23.2 157 Europe Local Currency U.S. Dollar GDV ($ billions) YOY Growth Rate % |
 5 2 nd Quarter Revenue - Assessments ($ in millions) • Net assessments increased $34, or 14.5%, to $268 • Gross assessments increased $59, or 13.3%, to $503 due to strong GDV growth of 13.3%* • Net assessments as a % of gross assessments increased slightly $268 $234 $0 $50 $100 $150 $200 $250 $300 2Q06 2Q07 20% 30% 40% 50% 60% 70% 80% Net Assessment Fees Rebates and Incentives and a % of gross assessments * On a local currency basis |
 6 2 nd Quarter Revenue - Operations Fees ($ in millions) • Net operations fees up $117, or 19.1%, to $729 • Gross operations fees increased $132, or 19.6%, over 2006. Key drivers include increases in: – Processed transactions growth: 15.2% – GDV growth: 13.3%* – Cross-border transaction volume growth of 17.3% • Net operations fees as a % of gross operations decreased slightly $729 $612 $0 $100 $200 $300 $400 $500 $600 $700 $800 2Q06 2Q07 85% 88% 91% 94% 97% 100% Net Operations Fees Rebates and incentives and a % of gross operations fees * On a local currency basis |
 7 2 nd Quarter Operating Expenses ($ in millions) $0 $100 $200 $300 $400 $500 2Q 2006 2Q 2007 General & Administrative Advertising & Marketing Depreciation & Amortization Litigation Settlements Charitable Contributions • Total operating expenses increased 3.2% to $725, excluding special items, and decreased 35.0% to $728, including special items* • G&A increased 18.2%, or $67, driven by: – Higher personnel costs for additional staff and contractors – Increase in professional fees for strategic initiatives and legal costs • Charitable contributions in 2006 primarily represented the initial donation of stock to the MasterCard Foundation • A&M decreased 12.6%, or $39, due to: – Significant World Cup soccer sponsorship activity in 2Q06 – Planned shift in spending to later quarters in 2007 $365 $307 $25 $432 $268 $25 $23 $400 $3 * See Appendix A for a GAAP reconciliation of special items for the three and six months ended June 30, 2007 and 2006 |
 8 2 nd Quarter Cash Flow Statement and Balance Sheet Highlights • Generated $446 million in cash flow from operations during the six months ended June 30, 2007 • Cash, cash equivalents and available-for-sale securities of $2.8 billion and stockholders’ equity of $2.9 billion • Prepaid expenses increased $65 million primarily due to higher customer incentives and advertising expenses • Debt of $80 million reclassified from long-term to short-term |
 9 2007 Items for Consideration • Special items: – None in 3Q 2006 – Litigation settlements of $2 million in 4Q 2006 • Expect second half G&A to grow at a rate similar to first half of the year • A&M spend: – Still anticipate very modest full-year growth – 3Q 2007 spend higher than 2Q 2007 – Highest spend in 4Q 2007, but more evenly distributed over remaining two quarters than in prior years • Redecard investment will be “marked-to-market” on our balance sheet Income Statement Balance Sheet |
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 11 Appendix A: GAAP Reconciliation a Litigation settlements b Contribution of stock to the MasterCard Foundation c Contribution of cash to the MasterCard Foundation d Interest income on IPO proceeds held for redemption e Other income related to a settlement agreement to discontinue the company's sponsorship of the 2010 and 2014 World Cup soccer events f Net tax effect of all special items in 2006 is negligible NM = Not meaningful Figures may not sum due to rounding |
 12 Appendix A (cont.): GAAP Reconciliation a Litigation settlements b Contribution of stock to the MasterCard Foundation c Contribution of cash to the MasterCard Foundation d Interest income on IPO proceeds held for redemption e Other income related to a settlement agreement to discontinue the company's sponsorship of the 2010 and 2014 World Cup soccer events f Net tax effect of all special items in 2006 is negligible NM = Not meaningful Figures may not sum due to rounding |