EX-99.1 2 dex991.htm PRESS RELEASE OF VISA INC. Press Release of Visa Inc.

Exhibit 99.1

LOGO

 

 

Visa Inc. Posts Strong Fiscal Third Quarter 2010 Earnings Results

 

 

 

•  

GAAP quarterly net income of $716 million or $0.97 per diluted class A common share

 

•  

Revenue growth of 23% as payments volume, cross border volume and processed transactions continue to improve globally

 

•  

Company completed the acquisition of CyberSource Corporation

SAN FRANCISCO, CA, July 28, 2010 – Visa Inc. (NYSE: V) today announced financial results for the Company’s fiscal third quarter 2010 ended June 30, 2010. GAAP net income for the quarter was $716 million, or $0.97 per diluted class A common share. The weighted average number of diluted class A common shares outstanding was 738 million.

GAAP net operating revenue in the fiscal third quarter of 2010 was $2.0 billion, an increase of 23% over the prior year and driven by strong contributions across all revenue categories, in particular data processing and international transaction revenues.

“Visa delivered a solid financial performance during our fiscal third quarter as we saw continued improvements in global cross border and payments volume growth,” said Joseph Saunders, Chairman and Chief Executive Officer of Visa Inc. “As we look to the remainder of our fiscal 2010 year, we remain focused on integrating our recent acquisition of CyberSource, maintaining strong financial performance and expense control discipline.”

“It goes without saying, the United States debit market will undergo changes following implementation of the Wall Street Reform and Consumer Protection Act next year,” added Saunders. “While it is too early to fully and accurately gauge the impact of the legislation, Visa has demonstrated an ability to manage our business through periods of change. The global shift from cash and checks to digital currency is a powerful force that continues unabated, providing tangible benefits to consumers, merchants, and governments worldwide. I continue to have strong confidence in our prospects for long-term growth driven by Visa’s highly resilient network business model, our continued investment in innovation and the expansion of our global reach.”

Fiscal Third Quarter 2010 Financial Highlights:

Payments volume growth, on a constant dollar basis for the three months ended March 31, 2010 on which fiscal third quarter service revenue is recognized, was a positive 13% over the prior year at $745 billion.

 

1

Payments volume growth, on a constant dollar basis, for the three months ended June 30, 2010, was a positive 14% over the prior year at $803 billion.

Cross border volume growth, on a constant dollar basis, was a positive 17% for the three months ended June 30, 2010.

Total processed transactions, which represent transactions processed by VisaNet, for the three months ended June 30, 2010 totaled 11.7 billion, were a positive 14% increase over the prior year.

For the fiscal third quarter 2010, service revenues were $873 million, an increase of 13% 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 31% over the prior year to $792 million. International transaction revenues, which are driven by cross border payments volume, grew 25% over the prior year to $574 million. Other revenues, which include the Visa Europe licensing fee, were $183 million, up 15% over the prior year. Volume and support incentives, which are a contra revenue item, were $393 million, which represents 16% of gross revenues.

Total operating expenses on a GAAP basis were $892 million for the quarter, an 8% increase over the prior year.

Cash, cash equivalents, restricted cash, and available-for-sale investment securities were $7.4 billion at June 30, 2010.

Notable Events:

On May 28, 2010, the Company deposited $500 million (the “Loss Funds”) into the litigation escrow account previously established under the Company’s Retrospective Responsibility Plan. The deposit of the Loss Funds into the escrow account reduced the conversion rate applicable to the Company’s class B common stock from 0.5824 to 0.5550. On an as-converted basis, the deposit of Loss Funds had the effect of a repurchase of approximately 6.7 million shares of class A common stock from the Company’s class B shareholders.

On July 21, 2010, the Company completed its acquisition of CyberSource Corporation, a leading provider of electronic payment, risk management and payment security solutions to online merchants, at a price of $26.00 per common share, or total consideration of approximately $2.0 billion 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.

 

2

On July 22, 2010, the Company announced that the 2011 annual meeting of stockholders will be held on January 27, 2011 (the “Annual Meeting”), with a record date of December 3, 2010. The Company’s stockholders at the close of business on the record date will be entitled to vote at the Annual Meeting.

In addition, the Company announced that its board of directors had unanimously voted to declassify the board and to submit a proposal at the Annual Meeting to amend the Company’s certificate of incorporation to eliminate the classification of the board of directors. The board of directors also unanimously voted to amend the Company’s certificate of incorporation, bylaws and corporate governance guidelines to adopt a majority vote standard for uncontested elections of directors and to submit a proposal to amend the Company’s certificate of incorporation to allow for the adoption of the majority vote standard. The changes to the bylaws and corporate governance guidelines are contingent on stockholder approval of the amendments to the certificate of incorporation.

Also, the Board of Directors declared a quarterly divided in the aggregate amount of $0.125 per share of class A common stock (determined in the case of class B and class C common stock on an as-converted basis) payable on September 1, 2010, to all holders of record of Visa’s class A, class B and class C common stock as of August 13, 2010.

Financial Outlook:

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

 

  •  

GAAP tax rate: 37% to 38% range; and

 

  •  

Capital expenditures: moderately above $200 million.

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

 

  •  

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

 

  •  

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

 

  •  

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

 

  •  

Annual operating margin: mid to high 50% range;

 

  •  

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

 

  •  

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

 

3

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.

Fiscal Third 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 “outlook,” “continue,” “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 tax rate, capital expenditures, revenue, incentives, expenses, operating margin, earnings per share, 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.

Consolidated Statements of Operations

(unaudited)

 

     Three Months
Ended June 30,		     Nine Months
Ended June 30,		  
     2010     2009     2010     2009  
     (in millions, except per share data)  

Operating Revenues

         

Service revenues

    $ 873      $ 769      $ 2,585        2,366   

Data processing revenues

      792        605        2,285        1,703   

International transaction revenues

      574        458        1,671        1,409   

Other revenues

      183        158        546        462   

Volume and support incentives

      (393 )      (344 )      (1,139 )      (908 ) 
                                

Total operating revenues

      2,029        1,646        5,948        5,032   
                                

Operating Expenses

         

Personnel

      285        282        869        873   

Network, EDP and communications

      103        97        306        282   

Advertising, marketing and promotion

      277        229        731        635   

Professional and consulting fees

      77        62        178        182   

Depreciation and amortization

      63        57        187        165   

Administrative and other

      87        96        242        225   

Litigation provision

      —          1        (41 )      1   
                                

Total operating expenses

      892        824        2,472        2,363   
                                

Operating income

      1,137        822        3,476        2,669   
                                

Other Income (Expense)

         

Equity in earnings of unconsolidated affiliates

      (3 )      —          (5 )      —     

Interest expense

      (13 )      (30 )      (57 )      (90 ) 

Investment income, net

      1        504        29        557   

Other

      —          1        —          1   
                                

Total other (expense) income

      (15 )      475        (33 )      468   
                                

Income before income taxes

      1,122        1,297        3,443        3,137   

Income tax expense

      406        568        1,252        1,299   
                                

Net income including non-controlling interest

      716        729        2,191        1,838   

Loss attributable to non-controlling interest

      —          —          1        1   
                                

Net income attributable to Visa Inc.

    $ 716      $ 729      $ 2,192      $ 1,839   
                                

Basic earnings per share

         

Class A common stock

    $ 0.97      $ 0.97      $ 2.97      $ 2.41   
                                

Class B common stock

    $ 0.56      $ 0.61      $ 1.72      $ 1.58   
                                

Class C common stock

    $ 0.97      $ 0.97      $ 2.97      $ 2.41   
                                

Basic weighted average shares outstanding

         

Class A common stock

      494        448        478        447   
                                

Class B common stock

      245        246        245        246   
                                

Class C common stock

      99        152        117        152   
                                

Diluted earnings per share

         

Class A common stock

    $ 0.97      $ 0.96      $ 2.96      $ 2.41   
                                

Class B common stock

    $ 0.55      $ 0.61      $ 1.71      $ 1.58   
                                

Class C common stock

    $ 0.97      $ 0.96      $ 2.96      $ 2.41   
                                

Diluted weighted average shares outstanding

         

Class A common stock

      738        757        742        762   
                                

Class B common stock

      245        246        245        246   
                                

Class C common stock

      99        152        117        152   
                                

 

5

Visa Inc.

Consolidated Balance Sheets

(unaudited)

 

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

Assets

     

Cash and cash equivalents

    $ 5,205      $ 4,617   

Restricted cash - litigation escrow

      1,865        1,365   

Investment securities

     

Trading

      56        59   

Available-for-sale

      29        56   

Settlement receivable

      416        605   

Accounts receivable

      501        444   

Customer collateral

      869        812   

Current portion of volume and support incentives

      177        214   

Current portion of deferred tax assets

      448        703   

Prepaid expenses and other current assets

      284        366   
                

Total current assets

      9,850        9,241   

Restricted cash - litigation escrow

      140        350   

Investment securities, available-for-sale

      128        168   

Volume and support incentives

      110        102   

Property, equipment and technology, net

      1,185        1,204   

Other assets

      192        125   

Intangible assets

      10,883        10,883   

Goodwill

      10,208        10,208   
                

Total assets

    $ 32,696      $ 32,281   
                

Liabilities

     

Accounts payable

    $ 94      $ 156   

Settlement payable

      446        634   

Customer collateral

      869        812   

Accrued compensation and benefits

      289        396   

Volume and support incentives

      395        284   

Accrued liabilities

      707        754   

Current portion of long-term debt

      12        12   

Current portion of accrued litigation

      670        1,394   
                

Total current liabilities

      3,482        4,442   

Long-term debt

      35        44   

Accrued litigation

      132        323   

Deferred tax liabilities

      3,798        3,807   

Other liabilities

      569        472   
                

Total liabilities

      8,016        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, 496 and 470 shares issued and outstanding at June 30, 2010, and September 30, 2009, respectively

      —          —     

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

      —          —     

Class C common stock, $0.0001 par value, 1,097 shares authorized, 98 and 131 shares issued and outstanding at June 30, 2010, and September 30, 2009, respectively

      —          —     

Additional paid-in capital

      20,936        21,160   

Class C treasury stock

      —          (2 ) 

Accumulated income

      3,822        2,219   

Accumulated other comprehensive loss, net

     

Investment securities, available-for-sale

      4        10   

Defined benefit pension and other postretirement plans

      (71 )      (136 ) 

Derivative instruments

      (13 )      (58 ) 

Foreign currency translation loss

      (2 )      (4 ) 
                

Total accumulated other comprehensive loss, net

      (82 )      (188 ) 
                

Total Visa Inc. stockholders’ equity

      24,676        23,189   

Non-controlling interest

      4        4   

Total equity

    $ 24,680      $ 23,193   
                

Total liabilities and equity

    $ 32,696      $ 32,281   
                

 

6

Visa Inc.

Consolidated Statements Of Cash Flows

(unaudited)

 

     Nine Months Ended June 30,  
     2010     2009  
     (in millions)  

Operating Activities

     

Net income including non-controlling interest

    $ 2,191      $ 1,838   

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

     

Gain on sale of other investments

      —          (473 ) 

Depreciation and amortization of property, equipment and technology

      187        165   

Share-based compensation

      95        84   

Tax benefit for share-based compensation

      (13 )      (6 ) 

Restricted stock instruments settled in cash for taxes

      (13 )      (22 ) 

Interest earned on litigation escrow, net of tax

      —          (14 ) 

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

      (17 )      8   

Asset impairment

      3        7   

Gain on disposal of property, equipment and technology

      (1 )      —     

Amortization of volume and support incentives

      1,139        908   

Litigation provision and accretion

      (18 )      72   

Equity in earnings of unconsolidated affiliates

      5        —     

Deferred income taxes

      190        316   

Change in operating assets and liabilities:

     

Trading securities

      3        10   

Accounts receivable

      (57 )      (77 ) 

Settlement receivable

      189        133   

Volume and support incentives

      (999 )      (785 ) 

Other assets

      (27 )      84   

Accounts payable

      (62 )      (53 ) 

Settlement payable

      (188 )      (116 ) 

Accrued compensation and benefits

      (107 )      (124 ) 

Accrued and other liabilities

      195        438   

Accrued litigation

      (897 )      (1,626 ) 
                

Net cash provided by operating activities

      1,798        767   
                

Investing Activities

     

Investment securities, available-for-sale:

     

Purchases

      (1 )      —     

Proceeds from sales and maturities

      50        276   

Distributions from money market investment

      85        884   

Purchases of / contributions to other investments

      (3 )      (1 ) 

Proceeds from sale of other investments

      1        —     

Dividends/distributions from other investments

      1        1   

Proceeds from disposal of property, equipment and technology

      1        —     

Purchases of property, equipment and technology

      (144 )      (205 ) 
                

Net cash (used in) provided by investing activities

      (10 )      955   
                

Financing Activities

     

Tax benefit for share-based compensation

      13        6   

Cash proceeds from exercise of stock options

      36        20   

Funding of litigation escrow account - Retrospective Responsibility Plan

      (500 )      (1,100 ) 

Payments from litigation escrow account - Retrospective Responsibility Plan

      210        1,481   

Payment for redemption of stock

      —          (2,646 ) 

Dividends paid

      (278 )      (240 ) 

Principal payments on debt

      (9 )      (8 ) 

Principal payments on capital lease obligations

      (10 )      (4 ) 

Repurchase of class A common stock

      (664 )      —     
                

Net cash used in financing activities

      (1,202 )      (2,491 ) 
                

Effect of exchange rate changes on cash and cash equivalents

      2        (10 ) 
                

Increase (decrease) in cash and cash equivalents

      588        (779 ) 

Cash and cash equivalents at beginning of year

      4,617        4,979   
                

Cash and cash equivalents at end of period

    $ 5,205      $ 4,200   
                

Supplemental Disclosure of Cash Flow Information

     

Income taxes paid, net of refunds

    $ 977      $ 528   

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

    $ 15      $ 25   

Interest payments on debt

    $ 3      $ 3   

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

(unaudited)

 

     Fiscal 2009 Quarter Ended     Fiscal 2010 Quarter Ended  
     June 30,
2009		     September 30,
2009		     December 31,
2009		     March 31,
2010		     June 30,
2010		  
                                

Operating Revenues

           

Service revenues

    $ 769      $ 808      $ 827      $ 885      $ 873   

Data processing revenues

      605        727        765        728        792   

International transaction revenues

      458        507        552        545        574   

Other revenues

      158        163        190        173        183   

Volume and support incentives

      (344 )      (326 )      (374 )      (372 )      (393 ) 
                                        

Total operating revenues

      1,646        1,879        1,960        1,959        2,029   
                                        

Operating Expenses

           

Personnel (1)

     282        355        274        310        285   

Network, EDP and communications

      97        111        105        98        103   

Advertising, marketing and promotion

      229        283        216        238        277   

Professional and consulting fees (1)

      62        86        51        50        77   

Depreciation and amortization

      57        61        62        62        63   

Administrative and other

      96        113        78        77        87   

Litigation provision

      1        1        (43 )      2        —     
                                        

Total operating expenses

      824        1,010        743        837        892   
                                        

Operating income

      822        869        1,217        1,122        1,137   
                                        

Other Income (Expense)

           

Equity in earnings of unconsolidated affiliates

      —          —          —          (2 )      (3 ) 

Interest expense

      (30 )      (25 )      (16 )      (28 )      (13 ) 

Investment income, net

      504        18        5        23        1   

Other

      1        1        2        (2 )      —     
                                        

Total other income (expense)

      475        (6 )      (9 )      (9 )      (15 ) 
                                        

Income before income taxes

      1,297        863        1,208        1,113        1,122   

Income tax expense

      568        349        445        401        406   
                                        

Net income including non-controlling interest

      729        514        763        712        716   

Loss attributable to non-controlling interest (2)

      —          —          —          1        —     
                                        

Net income attributable to Visa Inc.

    $ 729      $ 514      $ 763      $ 713      $ 716   
                                        

 

(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 June 30, 2010, as well as the prior seven quarterly reporting periods and the 12 months ended June 30, 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 June 30, 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

    $ 308    18.7 %    12.0 %    $ 197    19.3 %    12.0 %    2,586    $ 111    17.8 %    12.0 %    576

Canada

      55    21.8 %    11.4 %      50    22.1 %    11.7 %    432      5    18.7 %    8.6 %    9

CEMEA

      155    26.0 %    24.5 %      25    26.6 %    24.1 %    395      130    25.8 %    24.6 %    853

LAC

      185    23.3 %    16.5 %      62    26.3 %    21.6 %    1,524      123    21.8 %    14.1 %    847

US

      566    12.1 %    12.1 %      469    13.7 %    13.7 %    9,523      97    4.9 %    4.9 %    852
                                          

Visa Inc.

      1,269    17.2 %    14.1 %      803    16.8 %    14.0 %    14,460      466    17.9 %    14.1 %    3,136

Visa Credit Programs

                           

US

    $ 214    2.2 %    2.2 %    $ 204    5.9 %    5.9 %    2,349    $ 10    -39.4 %    -39.4 %    17

Rest of World

      320    18.9 %    12.0 %      278    18.7 %    11.7 %    3,688      43    20.3 %    13.7 %    155
                                          

Visa Inc.

      534    11.6 %    7.8 %      481    12.9 %    9.2 %    6,036      53    0.9 %    -2.9 %    172

Visa Debit Programs

                           

US

    $ 352    19.1 %    19.1 %    $ 265    20.5 %    20.5 %    7,174    $ 87    14.8 %    14.8 %    835

Rest of World

      383    24.1 %    19.1 %      56    37.4 %    30.8 %    1,249      327    22.1 %    17.3 %    2,130
                                          

Visa Inc.

      735    21.7 %    19.1 %      321    23.2 %    22.2 %    8,423      414    20.5 %    16.7 %    2,965

 

     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)		    Accounts
(millions)		    Cards
(millions)

All Visa Credit & Debit

                                 

Asia Pacific

    $ 296    29.5 %    12.7 %    $ 195    32.3 %    13.8 %    2,459    $ 102    24.5 %    10.6 %    553    452    537

Canada

      47    30.4 %    5.5 %      43    34.2 %    8.6 %    387      4    -0.1 %    -19.1 %    9    24    31

CEMEA

      140    29.8 %    17.9 %      23    31.3 %    16.7 %    357      118    29.5 %    18.1 %    771    196    199

LAC

      175    36.1 %    15.8 %      58    38.1 %    20.1 %    1,437      117    35.1 %    13.8 %    819    343    372

US

      518    10.7 %    10.7 %      427    12.7 %    12.7 %    8,573      91    2.1 %    2.1 %    754    509    686
                                                    

Visa Inc.

      1,176    21.4 %    12.5 %      745    20.8 %    13.4 %    13,213      431    22.5 %    11.1 %    2,905    1,524    1,825

Visa Credit Programs

                                 

US

    $ 194    -0.8 %    -0.8 %    $ 182    3.4 %    3.4 %    2,121    $ 12    -39.6 %    -39.6 %    16    217    281

Rest of World

      305    29.3 %    10.9 %      266    30.8 %    12.2 %    3,459      39    19.9 %    2.9 %    138    431    493
                                                    

Visa Inc.

      499    15.6 %    6.0 %      449    18.0 %    8.4 %    5,580      50    -2.2 %    -11.4 %    154    648    774

Visa Debit Programs

                                 

US

    $ 324    19.0 %    19.0 %    $ 245    20.9 %    20.9 %    6,452    $ 79    13.5 %    13.5 %    738    292    405

Rest of World

      353    33.1 %    16.8 %      51    49.9 %    26.7 %    1,181      302    30.7 %    15.3 %    2,013    584    646
                                                    

Visa Inc.

      677    26.0 %    17.9 %      296    25.1 %    21.9 %    7,633      381    26.7 %    14.9 %    2,751    876    1,051

 

9

Operational Performance Data

 

 

     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

      530    5.0 %    5.0 %      438    7.3 %    7.3 %    8,754      92    -4.7 %    -4.7 %    759    511    691
                                                    

Visa Inc.

      1,237    15.4 %    9.6 %      769    14.0 %    8.5 %    13,595      468    17.9 %    11.6 %    3,004    1,500    1,808

Visa Credit Programs

                                 

US

    $ 215    -6.9 %    -6.9 %    $ 201    -1.0 %    -1.0 %    2,373    $ 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    15.0 %    15.0 %    $ 238    15.4 %    15.4 %    6,381    $ 78    13.5 %    13.5 %    740    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    22.7 %    17.6 %      291    19.3 %    16.5 %    7,611      415    25.2 %    18.4 %    2,844    847    1,024
     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    521

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

      511    -2.7 %    -2.7 %      417    -1.0 %    -1.0 %    8,401      93    -9.9 %    -9.9 %    774    495    673
                                                    

Visa Inc.

      1,140    1.1 %    3.0 %      720    2.8 %    2.6 %    12,974      420    -1.6 %    3.8 %    2,871    1,461    1,765

Visa Credit Programs

                                 

US

    $ 210    -14.2 %    -14.2 %    $ 195    -8.6 %    -8.6 %    2,299    $ 16    -51.6 %    -51.6 %    21    230    301

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    0.1 %    -0.6 %    5,773      53    -28.3 %    -25.9 %    161    652    786

Visa Debit Programs

                                 

US

    $ 300    7.3 %    7.3 %    $ 223    6.8 %    6.8 %    6,101    $ 78    8.9 %    8.9 %    753    265    372

Rest of World

      334    3.8 %    11.3 %      45    11.8 %    16.5 %    1,100      289    2.6 %    10.5 %    1,957    544    607
                                                    

Visa Inc.

      635    5.4 %    9.4 %      268    7.6 %    8.3 %    7,201      367    3.9 %    10.2 %    2,710    809    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 %    9.9 %    $ 165    2.0 %    8.1 %    2,315    $ 94    6.9 %    13.3 %    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 %    9.9 %      20    2.8 %    12.6 %    324      103    -8.0 %    9.4 %    736    179    184

LAC

      150    -2.8 %    15.4 %      49    -0.4 %    16.5 %    1,302      101    -3.9 %    14.9 %    798    317    344

US

      505    -3.9 %    -3.9 %      412    -2.5 %    -2.5 %    8,288      93    -9.7 %    -9.7 %    764    482    661
                                                    

Visa Inc.

      1,083    -2.7 %    3.2 %      687    -1.7 %    1.6 %    12,625      396    -4.5 %    6.1 %    2,847    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 %    4.8 %      234    -1.5 %    5.9 %    3,283      35    -12.1 %    -1.7 %    137    418    482
                                                    

Visa Inc.

      479    -8.7 %    -4.6 %      426    -5.3 %    -1.5 %    5,566      52    -29.0 %    -24.0 %    159    651    791

Visa Debit Programs

                                 

US

    $ 296    5.8 %    5.8 %    $ 220    4.6 %    4.6 %    6,006    $ 76    9.4 %    9.4 %    743    249    352

Rest of World

      308    -0.3 %    15.1 %      41    7.2 %    22.9 %    1,054      267    -1.3 %    14.0 %    1,946    526    589
                                                    

Visa Inc.

      604    2.6 %    10.4 %      261    5.0 %    7.2 %    7,060      343    0.9 %    13.0 %    2,689    775    941

 

10

Operational Performance Data

 

 

     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    505

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    -4.2 %    -4.2 %      379    -2.5 %    -2.5 %    7,511      89    -11.0 %    -11.0 %    700    482    665
                                                    

Visa Inc.

      969    -6.5 %    4.4 %      617    -5.5 %    2.3 %    11,611      352    -8.4 %    8.2 %    2,695    1,417    1,723

Visa Credit Programs

                                 

US

    $ 196    -15.5 %    -15.5 %    $ 176    -9.7 %    -9.7 %    2,085    $ 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 %    5,427    $ 70    9.2 %    9.2 %    678    242    347

Rest of World

      265    -5.4 %    18.7 %      34    -2.5 %    25.2 %    996      231    -5.8 %    17.7 %    1,864    517    578
                                                    

Visa Inc.

      537    0.0 %    12.2 %      237    3.6 %    7.7 %    6,422      301    -2.7 %    15.8 %    2,542    759    925
     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 %    12,103      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 %    6,495      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    23.0 %    22.0 %      249    17.5 %    17.5 %    6,262      353    27.1 %    25.6 %    2,565    695    863

 

11

Operational Performance Data

 

 

     For the 12 Months Ended June 30, 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

    $ 1,203    22.6 %    13.6 %    $ 771    21.1 %    11.2 %    10,063    $ 432    25.4 %    18.1 %    2,233

Canada

      201    15.6 %    3.5 %      183    18.0 %    5.7 %    1,661      17    -5.1 %    -15.1 %    35

CEMEA

      576    12.5 %    13.4 %      91    17.2 %    12.9 %    1,425      484    11.7 %    13.4 %    3,156

LAC

      717    23.4 %    14.2 %      240    27.1 %    18.1 %    5,843      478    21.7 %    12.3 %    3,354

US

      2,125    6.1 %    6.1 %      1,752    8.0 %    8.0 %    35,250      373    -2.2 %    -2.2 %    3,139
                                          

Visa Inc.

      4,822    13.4 %    9.8 %      3,037    13.3 %    9.6 %    54,241      1,785    13.6 %    10.2 %    11,917

Visa Credit Programs

                           

US

    $ 833    -5.4 %    -5.4 %    $ 781    -0.4 %    -0.4 %    9,142    $ 51    -46.5 %    -46.5 %    73

Rest of World

      1,237    17.6 %    8.5 %      1,080    19.3 %    9.6 %    14,231      157    7.3 %    1.5 %    573
                                          

Visa Inc.

      2,069    7.1 %    2.4 %      1,861    10.2 %    5.2 %    23,372      208    -14.0 %    -16.9 %    646

Visa Debit Programs

                           

US

    $ 1,292    15.1 %    15.1 %    $ 971    16.0 %    16.0 %    26,108    $ 322    12.7 %    12.7 %    3,066

Rest of World

      1,460    22.1 %    16.8 %      206    34.1 %    24.1 %    4,760      1,254    20.3 %    15.7 %    8,204
                                          

Visa Inc.

      2,753    18.7 %    16.0 %      1,176    18.8 %    17.3 %    30,869      1,576    18.7 %    15.1 %    11,270

 

     For the 12 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

    $ 981    3.3 %    12.6 %    $ 636    2.7 %    12.2 %    8,862    $ 345    4.3 %    13.5 %    2,143    424    512

Canada

      173    -11.5 %    1.5 %      155    -10.2 %    3.0 %    1,532      18    -21.1 %    -9.4 %    36    23    31

CEMEA

      511    11.1 %    25.8 %      78    12.3 %    25.2 %    1,204      434    10.9 %    25.9 %    2,781    179    184

LAC

      581    3.0 %    20.0 %      189    4.3 %    20.5 %    5,166      393    2.4 %    19.7 %    3,220    317    344

US

      2,003    -0.8 %    -0.8 %      1,622    0.5 %    0.5 %    31,319      382    -5.9 %    -5.9 %    2,920    482    661
                                                    

Visa Inc.

      4,251    1.5 %    7.7 %      2,680    0.9 %    5.3 %    48,084      1,571    2.4 %    12.1 %    11,099    1,426    1,732

Visa Credit Programs

                                 

US

    $ 881    -9.3 %    -9.3 %    $ 785    -5.7 %    -5.7 %    9,114    $ 96    -31.2 %    -31.2 %    101    233    309

Rest of World

      1,051    -0.8 %    10.0 %      905    0.1 %    10.6 %    12,731      146    -6.1 %    5.8 %    570    418    482
                                                    

Visa Inc.

      1,932    -4.9 %    0.6 %      1,690    -2.7 %    2.8 %    21,845      242    -17.9 %    -12.2 %    671    651    791

Visa Debit Programs

                                 

US

    $ 1,122    7.2 %    7.2 %    $ 837    7.1 %    7.1 %    22,204    $ 286    7.3 %    7.3 %    2,819    249    352

Rest of World

      1,196    7.7 %    22.2 %      153    10.9 %    28.2 %    4,034      1,043    7.2 %    21.4 %    7,609    526    589
                                                    

Visa Inc.

      2,319    7.5 %    14.6 %      990    7.7 %    10.1 %    26,238      1,328    7.3 %    18.1 %    10,428    775    941

 

12

Operational Performance Data

 

 

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

     

Jun 30, 2010

    20 %    17 % 

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 % 

12 Months Ended

     

Jun 30, 2010

    8 %    6 % 

Jun 30, 2009

    (6 %)    0 % 

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

      

Jun 30, 2010

    11,721    14 % 

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 % 

12 Months Ended

      

Jun 30, 2010

    43,755    12 % 

Jun 30, 2009

    39,012    8 % 

 

14