EX-99.1 2 dex991.htm PRESS RELEASE OF VISA INC., DATED APRIL 28, 2010 Press release of Visa Inc., dated April 28, 2010

Exhibit 99.1

LOGO

 

 

Visa Inc. Posts Strong Fiscal Second Quarter 2010 Earnings Results

 

 

 

 

GAAP quarterly net income of $713 million or $0.96 per diluted class A common share

 

 

Revenue growth of 19% as payments volumes and processed transactions improve globally

SAN FRANCISCO, CA, April 28, 2010 – Visa Inc. (NYSE: V) today announced financial results for the Company’s fiscal second quarter 2010 ended March 31, 2010. GAAP net income for the quarter was $713 million, or $0.96 per diluted class A common share. The weighted average number of diluted class A common shares outstanding was 742 million.

GAAP net operating revenue in the fiscal second quarter of 2010 was $2.0 billion, an increase of 19% over the prior year and driven by strong contributions across all revenue categories, in particular data processing and international transaction revenues.

“Visa delivered strong financial performance during our fiscal second quarter and we remain confident in delivering our guidance for fiscal year 2010,” said Joseph Saunders, Chairman and Chief Executive Officer of Visa Inc. “Our performance was fueled by higher than expected payments volume growth. As I discussed at our recent Investor Day, we are increasingly optimistic that economic growth will gradually improve. At the same time, we remain diligent about how we manage our business and finances throughout the current economic environment.”

“Visa’s long term strategic goals and our ability to drive the migration to Visa products and services are based on our history of innovation and market responsiveness,” added Saunders. “Our pending acquisition of CyberSource is the most recent example of the Company responding to market opportunities to fuel future growth. We remain focused on enhancing product offerings and providing new technologies to our clients and customers, while we continue to deliver value to our shareholders.”

Fiscal Second Quarter 2010 Financial Highlights:

Payments volume growth, on a constant dollar basis for the three months ended December 31, 2009 on which fiscal second quarter service revenue is recognized, was a positive 8% over the prior year at $769 billion.

Payments volume growth, on a constant dollar basis, for the three months ended March 31, 2010, was a positive 13% over the prior year at $745 billion.

 

1


Cross border volume growth, on a constant dollar basis, was positive 12% for the three months ended March 31, 2010.

Total processed transactions, which represent transactions processed by VisaNet, for the three months ended March 31, 2010 totaled 10.6 billion, a 14% increase over the prior year.

For the fiscal second quarter 2010, service revenues were $885 million, an increase of 10% versus the prior year, and are recognized based on payments volume in the prior quarter. All other revenue categories are recognized based on current quarter activity. Data processing revenues rose 34% over the prior year to $728 million. International transaction revenues, which are driven by cross border payments volume, grew 22% over the prior year to $545 million. Other revenues, which include the Visa Europe licensing fee, were $173 million, up 17% over the prior year. Volume and support incentives, which are a contra revenue item, were $372 million, which represents 16% of gross revenue.

Total operating expenses on a GAAP basis were $837 million for the quarter, a 9% increase over the prior year.

Cash, cash equivalents, restricted cash, and available-for-sale investment securities were $6.3 billion at March 31, 2010.

Notable Events:

In October 2009, the Company announced that its Board of Directors authorized a $1.0 billion share repurchase plan through September 30, 2010, and is subject to change at the determination of Visa’s Board of Directors. During the three months ended March 31, 2010, we repurchased 2.8 million shares of our outstanding class A common stock at an average price of $83.61 per share in the open market for a total cost of $231 million. During the six months ended March 31, 2010, we repurchased 8.3 million shares of our outstanding class A common stock at an average price of $80.40 per share in the open market for a total cost of $664 million. At March 31, 2010, the share repurchase plan has remaining authorized funds of $336 million.

As previously announced, the Board of Directors approved the release of additional class C shares. The number of shares released for any class C shareholder was the greater of (a) 50% (fifty percent) of the restricted class C shares held by that shareholder as of March 1, 2010, and (b) 5,000 (five thousand) class C shares. Under this program, 56 million shares of class C common stock were released from transfer restrictions during the second quarter of fiscal 2010. The release of the class C shares did not increase the number of outstanding shares on an as-converted basis, and there are no dilutive effects to the outstanding class A common stock share count on an as-converted basis from these transactions.

 

2


As previously announced, the Company has entered into a definitive agreement to acquire CyberSource Corporation (“CyberSource”), a leading provider of electronic payment, risk management and payment security solutions to online merchant, at a price of $26 per share, or total consideration of approximately $2.0 billion to be paid with cash on hand. With the addition of CyberSource, Visa will offer merchants and financial institutions eCommerce solutions that include enhanced online payment processing capabilities, payment routing, fraud protection services and secure data hosting. The transaction is subject to customary closing conditions, including approval by the stockholders of CyberSource and required regulatory approvals. The transaction, which has been approved by the Visa and CyberSource boards of directors, does not require a Visa shareholder vote, and is expected to close in Visa’s fourth fiscal quarter of 2010.

Financial Outlook:

Visa Inc. updates its financial outlook for the following metrics for 2010:

 

   

Annual net revenue growth: high end of the 11% to 15% range; and

 

   

Volume and support incentives as a percent of gross revenues: high end of the 16% to 17% range.

Visa Inc. affirms its financial outlook for the following metrics through 2010:

 

   

Advertising, marketing and promotion expenses: less than $1 billion;

 

   

Annual operating margin: mid to high 50% range;

 

   

GAAP tax rate: 36.5% to 38.5% range;

 

   

Annual diluted class A common stock earnings per share: growth greater than 20%;

 

   

Capital expenditures: about $200 million; and

 

   

Annual free cash flow: in excess of $2 billion.

Visa Inc. affirms its financial outlook for the following metrics through 2011:

 

   

Annual diluted class A common stock earnings per share: growth greater than 20%; and

 

   

Annual free cash flow: in excess of $2 billion.

 

3


Fiscal Second Quarter 2010 Earnings Results Conference Call Details:

Visa’s executive management team will host a live audio webcast beginning at 5:00 p.m. Eastern time (2:00 p.m. Pacific time) today to discuss the financial results and business highlights.

All interested parties are invited to listen to the live webcast at http://investor.visa.com. A replay of the webcast will be available on the Visa Investor Relations website for 30 days.

Investor information, including supplemental financial information, is available on Visa Inc.’s Investor Relations website at http://investor.visa.com.

About Visa Inc.

Visa Inc. operates the world’s largest retail electronic payments network providing processing services and payment product platforms. This includes consumer credit, debit, prepaid and commercial payments, which are offered under the Visa, Visa Electron, Interlink and PLUS brands. Visa enjoys unsurpassed acceptance around the world, and Visa/PLUS is one of the world’s largest global ATM networks, offering cash access in local currency in more than 170 countries. For more information, visit www.corporate.visa.com.

Forward Looking Statements:

Certain statements contained in this press release are forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, which are subject to the “safe harbor” created by those sections. These statements can be identified by the terms “anticipate,” “believe,” “continue,” “could,” “estimate,” “expect,” “intend,” “may,” “plan,” “potential,” “predict,” “project,” “should,” “will” and similar expressions which are intended to identify forward-looking statements. In addition, any underlying assumptions are forward-looking statements. Such forward-looking statements include but are not limited to statements regarding certain of Visa’s goals and expectations with respect to earnings per share, revenue, operating margin, free cash flow, and the growth rate in those items, as well as other measures of economic performance.

By their nature, forward-looking statements: (i) speak only as of the date they are made, (ii) are not guarantees of future performance or results and (iii) are subject to risks, uncertainties and assumptions that are difficult to predict or quantify. Therefore, actual results could differ materially and adversely from those forward-looking statements as a result of a variety of factors, including all the risks discussed under the heading “Risk Factors” in Part 1, Item 1A – “Risk Factors” in our most recent Annual Report on Form 10-K and any subsequent Quarterly Reports on Form 10-Q or Periodic Reports on Form 8-K, if any. You are cautioned not to place undue reliance on such statements, which speak only as of the date of this press release. Unless required to do so under U.S. federal securities laws or other applicable laws, we do not intend to update or revise any forward-looking statements.

Contacts:

Investor Relations: Jack Carsky or Victoria Hyde-Dunn, 415-932-2213, ir@visa.com

Media Relations: Paul Cohen or Will Valentine, 415-932-2564, globalmedia@visa.com

 

4


Visa Inc.

Selected Consolidated Statements of Operations

(unaudited)

 

     Three Months
Ended March 31,
    Six Months Ended
March 31,
 
     2010     2009     2010     2009  
     (in millions, except per share data)  

Operating Revenues

        

Service revenues

   $ 885      $ 804      $ 1,712        1,597   

Data processing revenues

     728        544        1,493        1,098   

International transaction revenues

     545        446        1,097        951   

Other revenues

     173        148        363        304   

Volume and support incentives

     (372     (295     (746     (564
                                

Total operating revenues

     1,959        1,647        3,919        3,386   
                                

Operating Expenses

        

Personnel

     310        292        584        591   

Network, EDP and communications

     98        92        203        185   

Advertising, marketing and promotion

     238        196        454        406   

Professional and consulting fees

     50        64        101        120   

Depreciation and amortization

     62        56        124        108   

Administrative and other

     77        66        155        129   

Litigation provision

     2        —          (41     —     
                                

Total operating expenses

     837        766        1,580        1,539   
                                

Operating income

     1,122        881        2,339        1,847   
                                

Other Income (Expense)

        

Equity in earnings of unconsolidated affiliates

     (2     1        (2     —     

Interest expense

     (28     (30     (44     (60

Investment income, net

     23        34        28        53   

Other

     (2     1        —          —     
                                

Total other (expense) income

     (9     6        (18     (7
                                

Income before income taxes

     1,113        887        2,321        1,840   

Income tax expense

     401        352        846        731   
                                

Net income including non-controlling interest

     712        535        1,475        1,109   

Loss attributable to non-controlling interest

     1        1        1        1   
                                

Net income attributable to Visa Inc.

   $ 713      $ 536      $ 1,476      $ 1,110   
                                

Basic earnings per share

        

Class A common stock

   $ 0.97      $ 0.71      $ 1.99      $ 1.45   
                                

Class B common stock

   $ 0.56      $ 0.45      $ 1.16      $ 0.96   
                                

Class C common stock

   $ 0.97      $ 0.71      $ 1.99      $ 1.45   
                                

Basic weighted average shares outstanding

        

Class A common stock

     472        447        470        447   
                                

Class B common stock

     245        246        245        246   
                                

Class C common stock

     122        152        125        152   
                                

Diluted earnings per share

        

Class A common stock

   $ 0.96      $ 0.71      $ 1.99      $ 1.45   
                                

Class B common stock

   $ 0.56      $ 0.45      $ 1.16      $ 0.96   
                                

Class C common stock

   $ 0.96      $ 0.71      $ 1.99      $ 1.45   
                                

Diluted weighted average shares outstanding

        

Class A common stock

     742        756        743        765   
                                

Class B common stock

     245        246        245        246   
                                

Class C common stock

     122        152        125        152   
                                

 

5


Visa Inc.

Selected Consolidated Balance Sheets

(unaudited)

 

     March 31,
2010
    September 30,
2009
 
     (in millions, except par value data)  

Assets

    

Cash and cash equivalents

   $ 4,560      $ 4,617   

Restricted cash - litigation escrow

     1,365        1,365   

Investment securities

    

Trading

     63        59   

Available-for-sale

     22        56   

Settlement receivable

     666        605   

Accounts receivable

     502        444   

Customer collateral

     842        812   

Current portion of volume and support incentives

     212        214   

Current portion of deferred tax assets

     470        703   

Prepaid expenses and other current assets

     413        366   
                

Total current assets

     9,115        9,241   

Restricted cash - litigation escrow

     210        350   

Investment securities, available-for-sale

     154        168   

Volume and support incentives

     129        102   

Property, equipment and technology, net

     1,183        1,204   

Other assets

     186        125   

Intangible assets

     10,883        10,883   

Goodwill

     10,208        10,208   
                

Total assets

   $ 32,068      $ 32,281   
                

Liabilities

    

Accounts payable

   $ 78      $ 156   

Settlement payable

     618        634   

Customer collateral

     842        812   

Accrued compensation and benefits

     276        396   

Volume and support incentives

     343        284   

Accrued liabilities

     698        754   

Current portion of long-term debt

     12        12   

Current portion of accrued litigation

     670        1,394   
                

Total current liabilities

     3,537        4,442   

Long-term debt

     38        44   

Accrued litigation

     196        323   

Deferred tax liabilities

     3,808        3,807   

Other liabilities

     502        472   
                

Total liabilities

     8,081        9,088   
                

Equity

    

Preferred stock, $0.0001 par value, 25 shares authorized and none issued

   $ —        $ —     

Class A common stock, $0.0001 par value, 2,001,622 shares authorized, 494 and 470 shares issued and outstanding at March 31, 2010, and September 30, 2009, respectively

     —          —     

Class B common stock, $0.0001 par value, 622 shares authorized, 245 shares issued and outstanding at March 31, 2010, and September 30, 2009

     —          —     

Class C common stock, $0.0001 par value, 1,097 shares authorized, 100 and 131 shares issued and outstanding at March 31, 2010, and September 30, 2009, respectively

     —          —     

Additional paid-in capital

     20,883        21,160   

Class C treasury stock

     —          (2

Accumulated income

     3,199        2,219   

Accumulated other comprehensive loss, net

    

Investment securities, available for sale

     9        10   

Defined benefit pension and other postretirement plans

     (71     (136

Derivative instruments

     (39     (58

Foreign currency translation gain (loss)

     2        (4
                

Total accumulated other comprehensive loss, net

     (99     (188
                

Total Visa Inc. stockholders’ equity

     23,983        23,189   

Non-controlling interest

     4        4   

Total equity

   $ 23,987      $ 23,193   
                

Total liabilities and equity

   $ 32,068      $ 32,281   
                

 

6


Visa Inc.

Consolidated Statements Of Cash Flows

(unaudited)

 

     Six Months Ended March 31,  
     2010     2009  
     (in millions)  

Operating Activities

    

Net income including non-controlling interest

   $ 1,475      $ 1,109   

Adjustments to reconcile net income including non-controlling interest to net cash provided by operating activities:

    

Depreciation and amortization of property, equipment and technology

     124        108   

Share-based compensation

     61        64   

Tax benefit for share-based compensation

     (8     (6

Restricted stock instruments settled in cash for taxes

     (12     (22

Interest earned on litigation escrow, net of tax

     —          (12

Net recognized (gain) loss on investment securities, including other-than-temporary impairment

     (14     8   

Asset impairment

     1        3   

Gain on disposal of property, equipment and technology

     (1     —     

Amortization of volume and support incentives

     746        564   

Accrued litigation and accretion

     (25     48   

Equity in earnings of unconsolidated affiliates

     2        —     

Deferred income taxes

     185        338   

Change in operating assets and liabilities:

    

Trading securities

     (4     17   

Accounts receivable

     (58     (30

Settlement receivable

     (61     252   

Volume and support incentives

     (712     (464

Other assets

     (141     (9

Accounts payable

     (78     (87

Settlement payable

     (16     (335

Accrued compensation and benefits

     (120     (146

Accrued and other liabilities

     62        80   

Accrued litigation

     (826     (1,062
                

Net cash provided by operating activities

     580        418   
                

Investing Activities

    

Investment securities, available-for-sale:

    

Purchases

     (1     —     

Proceeds from sales and maturities

     45        252   

Distribution from money market investment

     85        840   

Purchases of / contributions to other investments

     (1     (1

Proceeds from sale of other investment

     1        —     

Dividends/distributions from other investments

     1        1   

Proceeds from disposal property, equipment and technology

     1        —     

Purchases of property, equipment and technology

     (79     (136
                

Net cash provided by investing activities

     52        956   
                

Financing Activities

    

Tax benefit for share-based compensation

     8        6   

Cash proceeds from exercise of stock options

     21        2   

Funding of litigation escrow account - Retrospective Responsibility Plan

     —          (1,100

Payments from litigation escrow account - Retrospective Responsibility Plan

     140        939   

Payment for redemption of stock

     —          (2,646

Dividends paid

     (185     (161

Principal payments on debt

     (6     (4

Principal payments on capital lease obligations

     (9     (4

Repurchase of class A common stock

     (664     —     
                

Net cash used in financing activities

     (695     (2,968
                

Effect of exchange rate changes on cash and cash equivalents

     6        (22
                

Decrease in cash and cash equivalents

     (57     (1,616

Cash and cash equivalents at beginning of year

     4,617        4,979   
                

Cash and cash equivalents at end of period

   $ 4,560      $ 3,363   
                

Supplemental Disclosure of Cash Flow Information

    

Income taxes paid, net of refunds

   $ 759      $ 324   

Amounts included in accounts payable and accrued and other liabilities related to purchases of property, equipment and technology

   $ 10      $ 41   

Interest payments on debt

   $ 2      $ 2   

Assets acquired in joint venture with note payable and equity interest issued

   $ —        $ 22   
                

 

7


Fiscal 2009 and 2010 Quarterly Results of Operations

US$ in millions

 

     Fiscal 2009 Quarter Ended     Fiscal 2010 Quarter Ended  
     December 31,
2008
    March 31,
2009
    June 30,
2009
    September 30,
2009
    December 31,
2009
    March 31,
2010
 
     (unaudited)     (unaudited)     (unaudited)     (unaudited)     (unaudited)     (unaudited)  

Operating Revenues

            

Service revenues

   $ 793      $ 804      $ 769      $ 808      $ 827      $ 885   

Data processing revenues

     554        544        605        727        765        728   

International transaction revenues

     505        446        458        507        552        545   

Other revenues

     156        148        158        163        190        173   

Volume and support incentives

     (269     (295     (344     (326     (374     (372
                                                

Total operating revenues

     1,739        1,647        1,646        1,879        1,960        1,959   
                                                

Operating Expenses

            

Personnel (1)

     299        292        282        355        274        310   

Network, EDP and communications

     93        92        97        111        105        98   

Advertising, marketing and promotion

     210        196        229        283        216        238   

Professional and consulting fees (1)

     56        64        62        86        51        50   

Depreciation and amortization

     52        56        57        61        62        62   

Administrative and other

     63        66        96        113        78        77   

Litigation provision

     —          —          1        1        (43     2   
                                                

Total operating expenses

     773        766        824        1,010        743        837   
                                                

Operating income

     966        881        822        869        1,217        1,122   
                                                

Other Income (Expense)

            

Equity in earnings of unconsolidated affiliates

     (1     1        —          —          —          (2

Interest expense

     (30     (30     (30     (25     (16     (28

Investment income, net

     19        34        504        18        5        23   

Other

     (1     1        1        1        2        (2
                                                

Total other (expense) income

     (13     6        475        (6     (9     (9
                                                

Income before income taxes

     953        887        1,297        863        1,208        1,113   

Income tax expense

     379        352        568        349        445        401   
                                                

Net income including non-controlling interest

     574        535        729        514        763        712   

Loss attributable to non-controlling interest (2)

     —          1        —          —          —          1   
                                                

Net income attributable to Visa Inc.

   $ 574      $ 536      $ 729      $ 514      $ 763      $ 713   
                                                

 

(1)

Certain reclassifications, not affecting net income attributable to Visa, have been made to fiscal 2009 quarterly information to conform to the current period presentation format, including the reclassification of contractor expense, which was previously reported in professional and consulting fees, to personnel.

(2)

The Company began to report non-controlling interest (previously referred to as minority interest) as a component of equity in the first quarter of fiscal 2010 and has updated all requisite financial statements, including the statement of operations, for all comparable periods presented as required under Accounting Standards Codification 810.

 

8


LOGO

Operational Performance Data

The tables below provide information regarding the available operational results for the 3 months ended March 31, 2010, as well as the prior seven quarterly reporting periods and the 12 months ended March 31, 2010 and 2009, for cards carrying the Visa, Visa Electron and Interlink brands.

1. Branded Volume and Transactions

The tables present total volume, payments volume, and cash volume, and the number of payments transactions, cash transactions, accounts and cards for cards carrying the Visa, Visa Electron and Interlink brands. Card counts include PLUS proprietary cards. Nominal and constant dollar growth rates over prior years are provided for volume-based data.

 

     For the 3 Months Ended March 31, 2010
     Total
Volume
($ billions)
   Growth
(Nominal
USD)
    Growth
(Constant
USD)
    Payments
Volume
($ billions)
   Growth
(Nominal
USD)
    Growth
(Constant
USD)
    Payments
Transactions
(millions)
   Cash
Volume

($ billions)
   Growth
(Nominal
USD)
    Growth
(Constant
USD)
    Cash
Transactions
(millions)

All Visa Credit & Debit

                          

Asia Pacific

   $ 296    29.2   12.3   $ 193    31.6   13.1   2,472    $ 102    24.9   10.9   556

Canada

     48    33.4   8.2     44    37.2   11.2   378      4    3.1   -16.4   8

CEMEA

     141    30.2   18.3     23    32.3   17.6   357      118    29.8   18.4   770

LAC

     174    35.7   15.5     58    38.5   20.4   1,431      116    34.4   13.2   808

US

     518    10.8   10.8     427    12.7   12.7   8,554      91    2.7   2.7   755
                                          

Visa Inc.

     1,176    21.5   12.6     745    20.8   13.4   13,193      431    22.7   11.2   2,897

Visa Credit Programs

                          

US

   $ 196    0.3   0.3   $ 182    3.4   3.4   2,115    $ 14    -27.6   -27.6   17

Rest of World

     305    29.4   11.1     266    30.8   12.3   3,440      39    20.4   3.3   142
                                          

Visa Inc.

     501    16.2   6.6     449    18.1   8.5   5,554      52    2.5   -7.2   159

Visa Debit Programs

                          

US

   $ 322    18.4   18.4   $ 245    20.9   20.9   6,440    $ 77    11.0   11.0   738

Rest of World

     353    33.2   16.8     51    50.2   27.0   1,199      302    30.6   15.2   2,000
                                          

Visa Inc.

     675    25.7   17.5     296    25.1   21.9   7,639      379    26.1   14.4   2,738

 

     For the 3 Months Ended December 31, 2009
     Total
Volume
($ billions)
   Growth
(Nominal
USD)
    Growth
(Constant
USD)
    Payments
Volume
($ billions)
   Growth
(Nominal
USD)
    Growth
(Constant
USD)
    Payments
Transactions
(millions)
   Cash
Volume
($ billions)
   Growth
(Nominal
USD)
    Growth
(Constant
USD)
    Cash
Transactions
(millions)
   Accounts
(millions)
   Cards
(millions)

All Visa Credit & Debit

                                

Asia Pacific

   $ 318    30.6   19.0   $ 197    22.1   10.1   2,541    $ 121    47.4   36.8   570    442    531

Canada

     51    18.9   0.7     47    22.4   3.7   430      4    -11.3   -24.9   9    24    31

CEMEA

     146    7.5   7.7     23    16.2   9.0   353      124    6.1   7.5   794    192    196

LAC

     191    33.0   13.0     64    37.5   16.0   1,516      127    30.9   11.4   873    331    359

US

     531    5.1   5.1     438    7.2   7.2   8,752      92    -4.1   -4.1   781    511    690
                                                    

Visa Inc.

     1,237    15.5   9.7     769    14.0   8.5   13,593      468    18.1   11.7   3,026    1,500    1,808

Visa Credit Programs

                                

US

   $ 215    -6.9   -6.9   $ 201    -1.1   -1.1   2,372    $ 14    -49.8   -49.8   19    227    297

Rest of World

     317    19.2   6.4     278    21.8   8.2   3,611      39    3.6   -5.0   141    425    488
                                                    

Visa Inc.

     531    7.1   0.6     478    11.0   4.1   5,983      53    -19.2   -23.1   160    653    784

Visa Debit Programs

                                

US

   $ 316    15.2   15.2   $ 238    15.4   15.4   6,380    $ 78    14.5   14.5   762    283    394

Rest of World

     390    29.7   19.8     53    40.3   21.7   1,230      337    28.2   19.5   2,104    564    630
                                                    

Visa Inc.

     706    22.8   17.7     291    19.3   16.5   7,610      416    25.4   18.5   2,866    847    1,024

 

9


Operational Performance Data

 

 

     For the 3 Months Ended September 30, 2009
     Total
Volume
($ billions)
   Growth
(Nominal
USD)
    Growth
(Constant
USD)
    Payments
Volume
($ billions)
   Growth
(Nominal
USD)
    Growth
(Constant
USD)
    Payments
Transactions
(millions)
   Cash
Volume
($ billions)
   Growth
(Nominal
USD)
    Growth
(Constant
USD)
    Cash
Transactions
(millions)
   Accounts
(millions)
   Cards
(millions)

All Visa Credit & Debit

                                

Asia Pacific

   $ 281    12.5   10.6   $ 183    12.0   8.8   2,475    $ 98    13.4   14.0   534    433    522

Canada

     48    -3.3   -3.1     44    -1.0   -0.8   412      4    -23.1   -22.9   9    24    31

CEMEA

     134    -7.1   4.3     21    -1.8   2.6   320      113    -8.1   4.6   738    187    190

LAC

     166    4.6   11.4     55    9.1   14.7   1,366      111    2.6   9.8   815    323    350

US

     510    -2.8   -2.8     417    -1.0   -1.0   8,400      93    -10.2   -10.2   787    496    674
                                                    

Visa Inc.

     1,140    1.0   3.0     720    2.7   2.6   12,973      419    -1.7   3.7   2,883    1,463    1,766

Visa Credit Programs

                                

US

   $ 210    -14.3   -14.3   $ 195    -8.6   -8.6   2,299    $ 16    -51.6   -51.6   21    230    302

Rest of World

     295    5.1   4.9     258    7.8   6.5   3,474      37    -10.1   -4.7   140    423    485
                                                    

Visa Inc.

     505    -3.9   -4.0     452    0.0   -0.6   5,773      53    -28.3   -25.9   161    652    787

Visa Debit Programs

                                

US

   $ 300    7.2   7.2   $ 223    6.8   6.8   6,100    $ 77    8.4   8.4   766    266    372

Rest of World

     334    3.8   11.3     45    11.8   16.5   1,100      289    2.6   10.5   1,957    544    608
                                                    

Visa Inc.

     634    5.4   9.3     268    7.6   8.3   7,200      366    3.8   10.1   2,722    810    979
     For the 3 Months Ended June 30, 2009
     Total
Volume
($ billions)
   Growth
(Nominal
USD)
    Growth
(Constant
USD)
    Payments
Volume
($ billions)
   Growth
(Nominal
USD)
    Growth
(Constant
USD)
    Payments
Transactions
(millions)
   Cash
Volume
($ billions)
   Growth
(Nominal
USD)
    Growth
(Constant
USD)
    Cash
Transactions
(millions)
   Accounts
(millions)
   Cards
(millions)

All Visa Credit & Debit

                                

Asia Pacific

   $ 259    3.7   10.3   $ 165    2.0   8.4   2,315    $ 94    6.9   13.7   540    424    512

Canada

     45    -11.5   -3.7     41    -9.8   -1.8   396      4    -25.1   -18.5   9    23    31

CEMEA

     123    -6.4   9.8     20    2.8   12.3   324      103    -8.0   9.3   736    179    184

LAC

     150    -2.8   15.3     49    -0.4   16.3   1,302      101    -3.9   14.8   798    317    344

US

     506    -3.9   -3.9     412    -2.5   -2.5   8,288      93    -9.5   -9.5   778    483    661
                                                    

Visa Inc.

     1,083    -2.7   3.1     687    -1.7   1.5   12,625      396    -4.4   6.0   2,861    1,426    1,732

Visa Credit Programs

                                

US

   $ 209    -15.0   -15.0   $ 192    -9.6   -9.6   2,282    $ 17    -49.2   -49.2   21    233    309

Rest of World

     269    -3.1   5.1     234    -1.5   6.1   3,283      35    -12.1   -1.6   137    418    482
                                                    

Visa Inc.

     479    -8.7   -4.8     426    -5.3   -1.6   5,566      52    -29.0   -24.6   159    651    791

Visa Debit Programs

                                

US

   $ 296    5.9   5.9   $ 220    4.6   4.6   6,006    $ 76    9.7   9.7   757    250    352

Rest of World

     308    -0.3   15.1     41    7.2   23.0   1,054      267    -1.3   14.0   1,946    526    589
                                                    

Visa Inc.

     604    2.6   10.4     261    5.0   7.1   7,059      343    0.9   13.0   2,702    776    941
     For the 3 Months Ended March 31, 2009
     Total
Volume
($ billions)
   Growth
(Nominal
USD)
    Growth
(Constant
USD)
    Payments
Volume
($ billions)
   Growth
(Nominal
USD)
    Growth
(Constant
USD)
    Payments
Transactions
(millions)
   Cash
Volume
($ billions)
   Growth
(Nominal
USD)
    Growth
(Constant
USD)
    Cash
Transactions
(millions)
   Accounts
(millions)
   Cards
(millions)

All Visa Credit & Debit

                                

Asia Pacific

   $ 229    -6.5   10.2   $ 147    -7.8   9.3   2,176    $ 82    -4.2   12.1   545    420    506

Canada

     36    -23.3   -0.8     32    -22.2   0.5   347      4    -30.6   -10.3   9    23    31

CEMEA

     108    -4.8   20.0     17    -0.4   20.3   294      91    -5.6   19.9   666    178    182

LAC

     128    -10.3   16.3     42    -9.3   15.8   1,283      86    -10.7   16.5   775    313    341

US

     468    -4.3   -4.3     379    -2.5   -2.5   7,511      89    -11.1   -11.1   708    482    664
                                                    

Visa Inc.

     969    -6.5   4.4     617    -5.5   2.3   11,611      352    -8.4   8.2   2,703    1,417    1,723

Visa Credit Programs

                                

US

   $ 196    -15.5   -15.5   $ 176    -9.7   -9.7   2,084    $ 19    -47.0   -47.0   22    240    318

Rest of World

     236    -11.9   6.8     204    -11.0   7.4   3,105      32    -17.7   2.8   131    418    480
                                                    

Visa Inc.

     431    -13.6   -3.8     380    -10.4   -0.6   5,189      51    -31.7   -21.9   153    658    797

Visa Debit Programs

                                

US

   $ 272    5.8   5.8   $ 202    4.7   4.7   5,426    $ 70    9.1   9.1   686    243    347

Rest of World

     265    -5.4   18.7     34    -2.5   25.2   996      231    -5.8   17.7   1,864    517    579
                                                    

Visa Inc.

     537    0.0   12.2     237    3.6   7.7   6,422      301    -2.7   15.8   2,550    759    926

 

10


Operational Performance Data

 

 

     For the 3 Months Ended December 31, 2008
     Total
Volume
($ billions)
   Growth
(Nominal
USD)
    Growth
(Constant
USD)
    Payments
Volume
($ billions)
   Growth
(Nominal
USD)
    Growth
(Constant
USD)
    Payments
Transactions
(millions)
   Cash
Volume
($ billions)
   Growth
(Nominal
USD)
    Growth
(Constant
USD)
    Cash
Transactions
(millions)
   Accounts
(millions)
   Cards
(millions)

All Visa Credit & Debit

                                

Asia Pacific

   $ 243    1.1   11.5   $ 161    2.1   12.6   2,227    $ 82    -0.9   9.4   533    414    501

Canada

     43    -16.3   2.1     38    -15.4   3.2   395      4    -23.5   -6.6   9    23    30

CEMEA

     136    18.5   34.2     20    11.9   30.1   306      117    19.7   35.0   708    174    179

LAC

     144    -1.2   22.0     47    -0.4   22.0   1,344      97    -1.6   22.0   848    312    340

US

     505    -1.9   -1.9     409    -1.0   -1.0   7,831      96    -5.3   -5.3   711    487    668
                                                    

Visa Inc.

     1,071    0.4   8.1     675    -0.9   4.7   12,102      397    2.6   14.2   2,809    1,409    1,718

Visa Credit Programs

                                

US

   $ 231    -9.0   -9.0   $ 203    -6.9   -6.9   2,380    $ 28    -21.7   -21.7   28    258    335

Rest of World

     266    -2.3   11.2     228    -1.6   11.5   3,228      37    -5.9   9.4   148    415    478
                                                    

Visa Inc.

     496    -5.5   1.4     431    -4.2   2.5   5,608      65    -13.4   -5.8   176    673    813

Visa Debit Programs

                                

US

   $ 275    5.0   5.0   $ 206    5.6   5.6   5,451    $ 69    3.4   3.4   683    229    333

Rest of World

     301    7.1   24.4     38    5.9   28.6   1,043      263    7.3   23.7   1,949    507    572
                                                    

Visa Inc.

     575    6.1   14.7     244    5.6   9.0   6,494      331    6.5   19.2   2,633    737    905
     For the 3 Months Ended September 30, 2008
     Total
Volume
($ billions)
   Growth
(Nominal
USD)
    Growth
(Constant
USD)
    Payments
Volume
($ billions)
   Growth
(Nominal
USD)
    Growth
(Constant
USD)
    Payments
Transactions
(millions)
   Cash
Volume
($ billions)
   Growth
(Nominal
USD)
    Growth
(Constant
USD)
    Cash
Transactions
(millions)
   Accounts
(millions)
   Cards
(millions)

All Visa Credit & Debit

                                

Asia Pacific

   $ 250    16.4   19.9   $ 163    16.3   19.8   2,144    $ 87    16.6   20.0   525    400    480

Canada

     50    5.5   9.1     44    6.9   10.6   395      5    -4.9   -1.6   9    24    32

CEMEA

     144    43.4   42.5     21    38.6   40.6   280      123    44.3   42.9   671    169    176

LAC

     159    31.3   27.0     51    32.9   28.7   1,237      108    30.5   26.2   798    301    334

US

     525    7.3   7.3     421    8.6   8.6   7,688      104    2.4   2.4   745    474    651
                                                    

Visa Inc.

     1,128    16.0   15.9     701    12.5   13.2   11,744      427    22.2   21.0   2,748    1,368    1,673

Visa Credit Programs

                                

US

   $ 245    2.0   2.0   $ 213    3.5   3.5   2,367    $ 32    -7.0   -7.0   30    263    336

Rest of World

     280    15.6   17.9     239    16.1   18.7   3,115      41    12.9   13.6   153    410    473
                                                    

Visa Inc.

     526    8.9   9.9     452    9.8   11.1   5,482      74    3.2   3.3   183    672    809

Visa Debit Programs

                                

US

   $ 280    12.4   12.4   $ 208    14.3   14.3   5,321    $ 71    7.3   7.3   714    211    314

Rest of World

     322    33.8   32.5     41    37.5   37.6   941      282    33.3   31.7   1,851    484    549
                                                    

Visa Inc.

     602    22.9   22.0     249    17.5   17.4   6,262      353    27.1   25.6   2,565    695    863
     For the 3 Months Ended June 30, 2008
     Total
Volume

($ billions)
   Growth
(Nominal
USD)
    Growth
(Constant
USD)
    Payments
Volume

($ billions)
   Growth
(Nominal
USD)
    Growth
(Constant
USD)
    Payments
Transactions
(millions)
   Cash
Volume
($ billions)
   Growth
(Nominal
USD)
    Growth
(Constant
USD)
    Cash
Transactions
(millions)
   Accounts
(millions)
   Cards
(millions)

All Visa Credit & Debit

                                

Asia Pacific

   $ 250    24.3   21.4   $ 162    22.4   19.1   2,032    $ 88    28.0   25.8   498    387    472

Canada

     51    14.3   10.3     45    14.5   10.4   383      6    13.0   9.0   9    24    31

CEMEA

     131    45.8   38.8     19    37.8   36.4   255      112    47.2   39.2   640    159    168

LAC

     155    35.4   23.1     50    40.3   27.5   1,160      105    33.2   21.1   754    303    328

US

     526    8.8   8.8     423    9.8   9.8   7,667      103    4.9   4.9   738    465    642
                                                    

Visa Inc.

     1,113    19.2   15.9     699    15.2   13.4   11,496      414    26.6   20.7   2,639    1,338    1,642

Visa Credit Programs

                                

US

   $ 246    4.7   4.7   $ 213    5.0   5.0   2,338    $ 34    2.9   2.9   29    262    335

Rest of World

     278    21.7   17.5     238    22.6   18.3   2,969      40    16.4   13.0   146    404    464
                                                    

Visa Inc.

     524    13.1   10.9     450    13.6   11.4   5,307      74    9.8   7.9   175    666    798

Visa Debit Programs

                                

US

   $ 280    12.6   12.6   $ 210    15.0   15.0   5,329    $ 69    5.9   5.9   708    203    308

Rest of World

     309    39.4   30.9     38    40.3   32.0   860      271    39.3   30.8   1,756    470    536
                                                    

Visa Inc.

     589    25.2   20.9     248    18.2   17.0   6,189      340    30.9   24.1   2,464    673    843

 

11


Operational Performance Data

 

 

     For the 12 Months Ended March 31, 2010
     Total
Volume
($ billions)
   Growth
(Nominal
USD)
    Growth
(Constant
USD)
    Payments
Volume
($ billions)
   Growth
(Nominal
USD)
    Growth
(Constant
USD)
    Payments
Transactions
(millions)
   Cash
Volume
($ billions)
   Growth
(Nominal
USD)
    Growth
(Constant
USD)
    Cash
Transactions
(millions)

All Visa Credit & Debit

                          

Asia Pacific

   $ 1,154    18.7   13.2   $ 738    16.5   10.2   9,804    $ 416    22.7   18.9   2,199

Canada

     192    7.0   0.4     175    9.7   2.9   1,616      16    -15.7   -20.7   35

CEMEA

     544    4.6   9.8     86    11.5   10.2   1,355      458    3.4   9.8   3,038

LAC

     682    16.5   13.7     227    20.1   16.9   5,616      455    14.7   12.2   3,294

US

     2,065    2.0   2.0     1,695    3.9   3.9   33,993      370    -5.6   -5.6   3,101
                                          

Visa Inc.

     4,637    8.3   7.1     2,922    8.6   6.4   52,384      1,715    7.9   8.2   11,668

Visa Credit Programs

                          

US

   $ 830    -9.5   -9.5   $ 770    -4.3   -4.3   9,068    $ 60    -46.4   -46.4   78

Rest of World

     1,186    11.9   6.9     1,036    14.0   8.3   13,807      150    -0.8   -2.1   560
                                          

Visa Inc.

     2,016    2.0   -0.5     1,806    5.4   2.5   22,875      210    -20.3   -20.9   638

Visa Debit Programs

                          

US

   $ 1,234    11.6   11.6   $ 925    11.8   11.8   24,925    $ 309    10.9   10.9   3,022

Rest of World

     1,386    15.8   15.9     191    26.5   22.0   4,583      1,195    14.2   14.9   8,007
                                          

Visa Inc.

     2,620    13.8   13.8     1,116    14.1   13.5   29,509      1,504    13.5   14.1   11,030

 

     For the 12 Months Ended March 31, 2009
     Total
Volume

($
billions)
   Growth
(Nominal
USD)
    Growth
(Constant
USD)
    Payments
Volume

($
billions)
   Growth
(Nominal
USD)
    Growth
(Constant
USD)
    Payments
Transactions
(millions)
   Cash
Volume
($ billions)
   Growth
(Nominal
USD)
    Growth
(Constant
USD)
    Cash
Transactions
(millions)
   Accounts
(millions)
   Cards
(millions)

All Visa Credit & Debit

                                

Asia Pacific

   $ 972    7.8   15.3   $ 633    7.4   14.9   8,580    $ 339    8.8   16.2   2,101    420    506

Canada

     179    -5.4   5.0     160    -4.5   6.1   1,519      19    -12.2   -2.7   36    23    31

CEMEA

     520    24.0   33.4     77    20.6   31.4   1,136      443    24.6   33.8   2,685    178    182

LAC

     586    11.8   21.9     189    13.4   23.1   5,023      397    11.1   21.4   3,175    313    341

US

     2,024    2.4   2.4     1,632    3.6   3.6   30,696      392    -2.3   -2.3   2,902    482    664
                                                    

Visa Inc.

     4,281    6.8   10.9     2,691    5.0   8.2   46,954      1,589    9.8   15.8   10,899    1,417    1,723

Visa Credit Programs

                                

US

   $ 918    -4.4   -4.4   $ 805    -2.0   -2.0   9,170    $ 113    -18.8   -18.8   109    240    318

Rest of World

     1,060    4.9   13.1     909    5.6   13.7   12,417      151    0.8   9.5   578    418    480
                                                    

Visa Inc.

     1,977    0.3   4.4     1,714    1.9   5.9   21,587      264    -8.6   -4.6   687    658    797

Visa Debit Programs

                                

US

   $ 1,106    8.9   8.9   $ 827    9.8   9.8   21,526    $ 279    6.4   6.4   2,792    243    347

Rest of World

     1,197    17.0   26.2     151    18.2   30.5   3,840      1,046    16.8   25.6   7,419    517    579
                                                    

Visa Inc.

     2,303    12.9   17.2     978    11.0   12.6   25,367      1,325    14.4   21.0   10,212    759    926

 

12


Footnote

The preceding tables present regional total volume, payments volume and cash volume, and the number of payments transactions, cash transactions, accounts and cards for cards carrying the Visa, Visa Electron and Interlink brands. Card counts include PLUS proprietary cards. Nominal and constant dollar growth rates over prior years are provided for volume-based data.

Payments volume represents the aggregate dollar amount of purchases made with cards carrying the Visa, Visa Electron and Interlink brands for the relevant period; and cash volume represents the aggregate dollar amount of cash disbursements obtained with these cards for the relevant period and includes the impact of balance transfers and convenience checks; but excludes proprietary PLUS volume. Total volume represents payments volume plus cash volume.

Visa payment products are comprised of credit and debit programs, and data relating to each program is included in the tables. Debit programs include Visa’s signature based and Interlink (PIN) debit programs.

The data presented is reported quarterly by Visa’s members on their operating certificates and is subject to verification by Visa. On occasion, members may update previously submitted information.

Visa’s CEMEA region is comprised of countries in Central Europe, the Middle East and Africa. For the 3 months ended September, 2009, Pakistan and Afghanistan were moved from the AP to CEMEA region. Several European Union countries in Central Europe, Israel and Turkey are not included in CEMEA. LAC is comprised of countries in Central and South America and the Caribbean. Rest of World includes Asia Pacific, Canada, CEMEA and LAC.

Information denominated in U.S. dollars is calculated by applying an established U.S. dollar/local currency exchange rate for each local currency in which Visa Inc. volumes are reported (“Nominal USD”). These exchange rates are calculated on a quarterly basis using the established exchange rate for each quarter. To eliminate the impact of foreign currency fluctuations against the U.S. dollar in measuring performance, Visa Inc. also reports year-over-year growth in total volume, payments volume and cash volume on the basis of local currency information (“Constant USD”). This presentation represents Visa’s historical methodology which may be subject to review and refinement.

 

13


Operational Performance Data

 

 

2. Cross Border Volume

The table below represents cross border volume growth for cards carrying the Visa, Visa Electron, Interlink and PLUS brands. Cross border volume refers to payments and cash volume where the issuing country is different from the merchant country.

 

Period

   Growth
(Nominal
USD)
    Growth
(Constant
USD)
 

3 Months Ended

    

Mar 31, 2010

   19   12

Dec 31, 2009

   8   2

Sep 30, 2009

   -9   -5

Jun 30, 2009

   -15   -8

Mar 31, 2009

   -15   -6

Dec 31, 2008

   -6   0

Sep 30, 2008

   14   12

Jun 30, 2008

   20   14

12 Months Ended

    

Mar 31, 2010

   -1   0

Mar 31, 2009

   2   5

3. Processed Transactions

The table below represents transactions involving Visa, Visa Electron, Interlink and PLUS cards processed on Visa’s networks.

 

Period

   Processed
Transactions
(millions)
   Growth  

3 Months Ended

     

Mar 31, 2010

   10,648    14

Dec 31, 2009

   10,924    12

Sep 30, 2009

   10,463    9

Jun 30, 2009

   10,266    8

Mar 31, 2009

   9,360    6

Dec 31, 2008

   9,797    8

Sep 30, 2008

   9,590    11

Jun 30, 2008

   9,473    13

12 Months Ended

     

Mar 31, 2010

   42,300    11

Mar 31, 2009

   38,219    9

 

14