MasterCard Incorporated Second-Quarter 2010 Financial Results Conference Call August 3, 2010 Exhibit 99.2 |
Business Update • Economic Overview • Regulatory Update • Business Trends 2 |
2nd Quarter Selected Financial Performance ($ in millions, except per share data) 2Q 2010 2Q 2009 YOY Growth % Net revenue $ 1,365 $ 1,280 6.7 Total operating expenses 648 723 (10.4) Operating income Operating margin 717 52.6% 557 43.5% 28.8 9.1 ppts Net income $ 458 $ 349 31.3 Diluted EPS $ 3.49 $ 2.67 30.7 3 |
2nd Quarter 2010 MasterCard-Branded GDV and Purchase Volume Note: Figures may not sum due to rounding 4 $US U.S. Local $US U.S. Local billions Dollar Currency billions Dollar Currency APMEA 144 26.2 17.8 94 22.8 14.5 Canada 27 17.2 3.2 24 18.9 4.7 Europe 191 9.5 13.6 143 9.2 13.2 Latin America 51 22.3 15.7 29 27.7 21.0 United States 244 (0.5) (0.5) 204 0.7 0.7 Worldwide 656 9.8 8.5 493 9.1 7.9 APMEA = Asia Pacific / Middle East / Africa YOY Growth % YOY Growth % Gross Dollar Volume Purchase Volume |
• Net Revenue increased 6.7%; 7.9% on a constant currency basis • Domestic Assessments increased 11.0% • Cross Border Volume Fees increased 34.5% • Transaction Processing Fees grew 6.0% • Other Revenues decreased 5.2% • Rebates & Incentives increased 34.7% 2nd Quarter Revenue ($ in millions) 5 $586 $348 $503 $187 ($344) $1,280 $650 $468 $533 $177 ($463) $1,365 -$625 -$425 -$225 -$25 $175 $375 $575 $775 $975 $1,175 $1,375 Domestic Assessments Cross Border Volume Fees Transaction Processing Fees Other Revenues 2Q 2009 2Q 2010 Rebates & Incentives Net Revenue |
$507 $180 $36 $723 $433 $180 $35 $648 $0 $100 $200 $300 $400 $500 $600 $700 $800 General & Administrative Advertising & Marketing Depreciation & Amortization Total Operating Expenses 2Q 2009 2Q 2010 2nd Quarter Operating Expenses ($ in millions) • Total Operating Expenses decreased 10.4%; 9.7% on a constant currency basis • G&A decreased 14.5% primarily due to decreased personnel costs • A&M decreased 0.3% • Excluding foreign currency, A&M increased 0.2% • Depreciation & Amortization decreased 3.8% 6 |
2nd Quarter 2010 Cash Flow Statement and Balance Sheet Highlights • Generated $343 million in cash flow from operations for the quarter ended 6/30/2010 • Cash, cash equivalents and other liquid investments of $3.5 billion at 6/30/2010 7 |
Thoughts for 2010 • Net Revenue • Total Operating Expenses – General & Administrative – Advertising & Marketing • Tax rate • Operating margin and net income growth 8 |
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