Mastercard (MA) 8-K Quarterly net income of $322 million, or $2.47 per diluted share, excluding a special item

MasterCard Incorporated

3

rd

Quar

ter

2008

Financial Results Conference Call

November 3, 2008

Exhibit 99.2

2

Business Update

•

Economic Overview

•

Business Overview

•

Recent Litigation Settlement

3

Items for Consideration

•

Initial thoughts for 2009:

–

Net revenue growth will be lower than longer-term objective range

–

Operating

expenses will be essentially flat over 2008 levels

•

Longer-term objectives remain in place

–

Objectives assume constant FX

–

Recent global economic and financial environments lead to ongoing

evaluation

4

$

2.47

$     322

548

41.0%

790

$  1,338

3Q 2008

adjusted for

special

items*

2.31

314

353

32.6%

730

$       1,083

3Q 2007

adjusted for

special

items*

$

(1.49)

$

(194)

(279)

(20.9%)

1,617

$

1,338

3Q 2008

Actual

6.9

Diluted EPS

2.3

Net income (loss)

8.3

Total operating expenses

55.2

8.4 ppts

Operating income (loss)

Operating margin

23.6

Net revenue

YOY

adjusted

Growth %

3rd Quarter Selected Financial Performance

($ in millions, except percentages and per share data)

Note: Figures may not sum due to rounding

*See Appendix A for a GAAP reconciliation of special items for the three months ended September 30,  2007 and 2008

$

$

5

MasterCard Branded Volume (GDV) 

3rd Quarter 2008

Note: Figures may not sum due to rounding

4.7

4.7

268

United States

12.3

14.8

662

Worldwide

16.0

16.5

27

Canada

32.9

27.2

14

South Asia/Middle East/Africa

21.3

23.6

95

Asia Pacific

15.5

24.0

48

Latin America

16.8

23.0

209

Europe

Local

Currency

U.S.

Dollar

GDV

($  billions)

YOY Growth

Rate %

(SAMEA)

6

3rd Quarter Revenue -

Operations Fees

($ in millions)

•

Net operations fees increased

25.8%, or $204, to $996

•

Gross operations fees increased

24.8%, or $218, to $1,097.  Key

drivers included:

–

Processed transactions

growth of 13.0%

–

GDV growth of 14.8%

*

–

Cross-border fee increases

and 18.0% volume

growth

•

Net operations fees as a % of

gross improved slightly

* On a U.S. dollar basis

$996

$792

$0

$150

$300

$450

$600

$750

$900

$1,050

3Q07

3Q08

85%

88%

91%

94%

97%

100%

Net Operations Fees

Net Operations Fees as a % of Gross Operations Fees

7

3rd Quarter Revenue -

Assessments

($ in millions)

•

Net assessments increased

17.5%, or $51, to $342

•

Gross assessments increased

15.0%, or $79, to $604 due to

strong GDV growth of 14.8%

*

•

Net assessments as a % of

gross assessments improved

slightly

* On a U.S. dollar basis

$291

$342

$0

$50

$100

$150

$200

$250

$300

$350

$400

3Q07

3Q08

20%

30%

40%

50%

60%

70%

80%

Net Assessment Fees

Net Assessment Fees as a % of Gross Assessment Fees

8

3rd Quarter Operating Expenses

($ in Millions)

*See Appendix A for a GAAP reconciliation of special items for the three months ended September 30, 2007 and  2008

Excluding special items

*

:

•

Total operating expenses increased

8.3%, or $60, to $790

•

G&A increased 14.1%, or $61, to

$494 primarily due to:

–

Higher personnel costs for new

hires and contractors

–

Foreign currency losses

–

Litigation expenses

•

A&M increased 1.1%, or $3, to $267

primarily due to currency fluctuations

$433

$494

$264

$267

$22

$29

$0

$100

$200

$300

$400

$500

3Q07

3Q08

General & Administrative

Advertising & Marketing

Depreciation & Amortization

Full-year 2008 outlook:

•

G&A growth rate

will approximate the 13.6% year-to-date growth

•

Total A&M spend will be lower than full-year 2007

9

Cash Flow Statement and

Balance Sheet Highlights

•

Generated $388

million in cash flow from operations during the third

quar

ter;

and

$931

million

during

the

nine

months

ended

September 30,

2008

•

Cash, cash equivalents and current available-for-sale securities of

$2.8 billion at September 30, 2008

•

Litigation settlement impacts

•

Reclassification

from

long-term

to

shor

t-term

debt

and

related

assets

10

11

Appendix A:

GAAP Reconciliation

a Discover litigation settlement

NM = Not meaningful

Figures may not sum due to rounding

($ million)

YOY Growth

Actual

Special

Items

As Adjusted

Actual

Special

Items

As

Adjusted

As Adjusted

Revenues, net

$         1,338

$           -

$       1,338

$      1,083

$            -

$       1,083

23.6%

Operating Expenses

General and administrative

494

-

494

433

-

433

14.1%

Advertising and marketing

267

-

267

264

-

264

1.1%

Litigation settlements

828

828

a

-

-

-

-

-

Charitable contributions to the MasterCard Foundation

-

-

-

10

-

10

NM

Depreciation and amortization

29

-

29

22

-

22

29.0%

Total operating expenses

1,617

828

790

730

-

730

8.3%

Operating income (loss)

(279)

828

548

353

-

353

55.2%

Operating Margin

(20.9%)

-

41.0%

32.6%

-

32.6%

8.4 ppt.

Other Income (Expense)

Investment income, net

23

23

146

-

146

(84.5%)

Interest expense

(36)

-

(36)

(16)

-

(16)

120.9%

Other income, net

(1)

-

(1)

(1)

(1)

(18.7%)

Total other income (expense)

(14)

-

(14)

129

-

129

(111.2%)

Income (loss) before income taxes

(294)

828

534

482

-

482

10.7%

Income tax expense (benefit)

(100)

312

212

168

-

168

26.3%

Net Income (Loss)

$          (194)

$         516

$          322

$         314

$            -

$314

2.3%

Basic Net Income (Loss) per Share

$         (1.49)

$        3.97

$         2.48

$        2.32

$            -

$         2.32

6.9%

Diluted Net Income (Loss) per Share

$         (1.49)

$        3.96

$         2.47

$        2.31

$            -

$         2.31

6.9%

For the three months ended 9/30/08

For the three months ended 9/30/07