Visa Inc. · NYSE:V
Visa — Q2 2017 Earnings Presentation
15 slides from Visa's earnings presentation, Apr 20, 2017
Slide 1: Visa Inc. Fiscal Second Quarter 2017 Financial Results
Visa Inc. Fiscal Second Quarter 2017 Financial Results April 20, 2017 EXHIBIT 99.2
Slide 2: Forward-Looking Statements
Fiscal Second Quarter 2017 Financial Results2 This presentation contains forward-looking statements within the meaning of the U.S. Private Securities Litigation Reform Act of 1995 that relate to, among other things, our future operations, prospects, developments, strategies, business growth and fina
Slide 3: Strong Fiscal Second Quarter Results
Fiscal Second Quarter 2017 Financial Results3 Strong Fiscal Second Quarter Results Adjusted net income of $2.1 billion or $0.86 per share excluding special items related to the legal entity reorganization of Visa Europe Returned approximately $2.1 billion of capital to shareholders in the form of sh
Slide 4: Payments Volume - Quarter ended December
Fiscal Second Quarter 2017 Financial Results4 Quarter ended December – Excludes Europe Co-badge Payments Volume* Payments Volume US$ in billions, nominal, except percentages INTL 591 INTL 999 INTL 470 INTL 596 INTL 121 INTL 402 U.S. 714 U.S. 804 U.S. 357 U.S. 430 U.S. 357 U.S. 374 1,306 1,802 828 1,
Slide 5: Payments Volume - Quarter ended March
Fiscal Second Quarter 2017 Financial Results5 Quarter ended March – Excludes Europe Co-badge Payments Volume* Payments Volume US$ in billions, nominal, except percentages YOY Change (constant) 37% 25% 58% YOY Change (nominal) 25% 60%38% Note: Current quarter payments volume and other select metrics
Slide 6: Transactions - Quarter ended March
Fiscal Second Quarter 2017 Financial Results6 Quarter ended March - Excludes Europe Co-badge from Total Transactions* Transactions in millions, except percentages Note: Total transactions represent payments and cash transactions as reported by Visa clients on their operating certificates. On occasio
Slide 7: Total Cards - Quarter ended December
Fiscal Second Quarter 2017 Financial Results7 Quarter ended December Total Cards in millions, except percentages 2,472 885 1,587 3,144 1,063 2,081 Visa Inc. Credit Debit Note: The data presented is based on results reported quarterly by Visa clients on their operating certificates. Estimates may be
Slide 8: Revenue - Q2 2017
Fiscal Second Quarter 2017 Financial Results8 4,415 (789) 3,626 5,508 (1,031) 4,477 Gross Revenues Client Incentives Net Operating Revenues Fiscal 2016 Fiscal 2017 Revenue – Q2 2017 US$ in millions, except percentages YOY Change 30% 23%25% Fiscal 2017 % of Gross Revenues 19% 81% Note: Figures may no
Slide 9: Revenue Detail - Q2 2017
Fiscal Second Quarter 2017 Financial Results9 Revenue Detail – Q2 2017 US$ in millions, except percentages 1,699 1,473 1,045 198 1,993 1,843 1,469 203 Service Revenues Data Processing Revenues International Transaction Revenues Other Revenues Fiscal 2016 Fiscal 2017 YOY Change 25% 41%17% 3% Note: Fi
Slide 10: Operating Margin - Q2 2017
Fiscal Second Quarter 2017 Financial Results10 Operating Margin – Q2 2017 US$ in millions, except percentages 3,626 1,192 2,434 4,477 1,669 2,808 1,477 3,000 Operating Expenses Operating Income Fiscal 2016 Reported GAAP 2017 Adjusted non-GAAP 2017 Net Operating Revenue 67% 63% 67% Operating Margin N
Slide 11: Operating Expenses - Q2 2017
Fiscal Second Quarter 2017 Financial Results11 Operating Expenses – Q2 2017 US$ in millions, except percentages 528 186 126 66 121 164 1 704 193 150 83 131 406 2 214 Depreciation & Amortization General & Administrative Fiscal 2016 Reported GAAP 2017 Adjusted non-GAAP 2017 NM- Not meaningful Note: Th
Slide 12: Other Financial Results and Highlights
Fiscal Second Quarter 2017 Financial Results12 Other Financial Results and Highlights • Cash, cash equivalents and available-for-sale investment securities of $10.7 billion at the end of the fiscal second quarter • Adjusted free cash flow of $250 million for the fiscal second quarter • Capital expen
Slide 13: Financial Outlook for Fiscal Full-Year 2017
Fiscal Second Quarter 2017 Financial Results13 Financial Outlook for Fiscal Full-Year 2017 Annual net revenue growth High end of 16% to 18% range on a nominal dollar basis, including 2.0 to 2.5 ppts of negative foreign currency impact Client incentives as a percent of gross revenues Low end of 20.5%
Slide 14: Appendix
Appendix VISA
Slide 15: Calculation of Adjusted Free Cash Flow
Fiscal Second Quarter 2017 Financial Results15 Calculation of Adjusted Free Cash Flow US$ in millions A- Three Months Ended March 31, 2017 Six Months Ended March 31, 2017 Net cash provided by operating activities 396 2,904 Less: Capital expenditures (146) (317) Adjusted Free Cash Flow 250 2,587 Mana