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 2011 Earnings Results and Authorizes New $1 Billion Share Repurchase Program

 

 

 

 

GAAP quarterly net income of $1.0 billion including a non-operating gain related to the Visa Europe put option revaluation

 

 

Adjusted quarterly net income of $883 million or $1.26 per diluted class A common share excluding the revaluation of the Visa Europe put option

 

 

The Company authorized a new $1 billion share repurchase program

SAN FRANCISCO, CA, July 27, 2011 – Visa Inc. (NYSE: V) today announced financial results for the Company’s fiscal third quarter 2011 ended June 30, 2011. GAAP net income for the quarter, inclusive of a non-cash, non-operating gain related to the Company’s revaluation of its Visa Europe put option, was $1.0 billion.

On an adjusted basis, which excludes the revaluation of the Company’s Visa Europe put option, net income for the quarter was $883 million, an increase of 23% over the prior year, and diluted class A common stock earnings per share were $1.26, an increase of 29% over the prior year. The weighted-average number of diluted class A common shares outstanding was approximately 704 million. The Company’s adjusted quarterly net income per class A common shares outstanding is a non-GAAP financial measure that is reconciled to its most directly comparable GAAP measure in the accompanying financial tables.

GAAP net operating revenue in the fiscal third quarter of 2011 was $2.3 billion, an increase of 14% over the prior year and driven by strong double-digit growth in service revenues, data processing revenues and international transaction revenues. Currency fluctuations contributed two percentage points of growth towards quarterly net operating revenues.

“Visa delivered another quarter of strong financial and operational performance as we benefitted from growth in global payments volume, and solid cross border and processed transaction growth,” said Joseph Saunders, Chairman and Chief Executive Officer of Visa Inc. “As we address the new regulatory landscape, we are prepared to deliver on our financial goals and remain an industry leading growth company in the global transactions space.”

“Visa is a diverse global enterprise, with strong positions in both developed and emerging markets around the world, and we are committed to further diversifying our business and accelerating growth in key

 

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markets worldwide,” said Saunders. “We are executing on our growth strategy, investing heavily in innovation and taking important steps to bring new products and solutions to our partners and consumers.”

Fiscal Third Quarter 2011 Financial Highlights:

Payments volume growth, on a constant dollar basis, for the three months ended March 31, 2011, on which fiscal third quarter service revenue is recognized, was a positive 13% over the prior year at $862 billion.

Payments volume growth, on a constant dollar basis, for the three months ended June 30, 2011, was a positive 13% over the prior year at $941 billion.

Cross border volume growth, on a constant dollar basis, was a positive 14% for the three months ended June 30, 2011.

Total processed transactions, which represent transactions processed by VisaNet, for the three months ended June 30, 2011, were 13 billion, a positive 11% increase over the prior year.

For the fiscal third quarter 2011, service revenues were $1.1 billion, an increase of 21% 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 12% over the prior year to $886 million. International transaction revenues, which are driven by cross border payments volume, grew 15% over the prior year to $662 million. Other revenues, which include the Visa Europe licensing fee, were $167 million, a 10% decrease over the prior year. Client incentives, which are a contra revenue item, were $448 million and represents 16% of gross revenues.

Total operating expenses on a GAAP basis were $977 million for the quarter, a 10% increase over the prior year.

Cash, cash equivalents, restricted cash, and available-for-sale investment securities were $6.7 billion at June 30, 2011.

Visa’s effective tax rate was 38% for the quarter ended June 30, 2011, excluding the revaluation of the Visa Europe put option.

 

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Notable Events:

On June 6, 2011, the Company acquired Fundamo, a leading platform provider of mobile financial services for mobile network operators and financial institutions in developing economies, for total consideration of approximately $110 million paid with cash on hand. In addition, the Company announced a new, long-term commercial agreement with Monitise plc, a leading provider of mobile money solutions for financial institutions in more developed geographies. The combination of acquiring Fundamo and expanding the relationship with Monitise will enable Visa to deliver best-in-class mobile financial services and payments capabilities to consumers across the full spectrum of uses, geographies and mobile environments from basic services on simple handsets to more advanced services for smart phone owners.

During the quarter, the Company received regulatory approval for the sale of its 10 percent investment in Visa Vale issuer Companhia Brasileira de Soluções e Serviços, or CBSS, to Banco do Brasil and Bradesco. This resulted in a pre-tax gain, net of transaction costs, of $85 million recognized in the investment income net line on the consolidated statements of operations. The amount of the gain net of tax was $44 million.

During the three months ended June 30, 2011, the Company repurchased approximately 13.7 million class A common shares, at an average price of $77.36 per share, for a total cost of $1.1 billion.

As announced on July 22, 2011, the Board of Directors declared a quarterly dividend in the aggregate amount of $0.15 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 7, 2011, to all holders of record of the Company’s class A, class B and class C common stock as of August 19, 2011.

Today, the Company announces that its Board of Directors has authorized a new $1 billion class A share repurchase program. The authorization will be in place through July 20, 2012, and is subject to further change at the discretion of the Board.

Financial Outlook:

Visa Inc. updates its financial outlook for the following metric for 2011:

 

   

Capital expenditures: Moderately above $300 million.

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

 

   

Annual net revenue growth: 11% to 15% range;

 

   

Client incentives as a percent of gross revenues: top end of the 16% to 16.5% range;

 

   

Marketing expenses: Less than $900 million;

 

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Annual operating margin: About 60%;

 

   

GAAP tax rate: 36.5% to 37% range, excluding the revaluation of the Visa Europe put option;

 

   

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

 

   

Annual free cash flow in excess of $3 billion.

Visa Inc. affirms its financial outlook for the following metrics through 2012:

 

   

Annual net revenue growth: high single to low double digit range; and

 

   

Annual diluted class A common stock earnings per share growth: mid to high teens range.

Fiscal Third Quarter 2011 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

Visa is a global payments technology company that connects consumers, businesses, financial institutions and governments in more than 200 countries and territories to fast, secure and reliable digital currency. Underpinning digital currency is one of the world’s most advanced processing networks—VisaNet—that is capable of handling more than 20,000 transaction messages a second, with fraud protection for consumers and guaranteed payment for merchants. Visa is not a bank and does not issue cards, extend credit or set rates and fees for consumers. Visa’s innovations, however, enable its financial institution customers to offer consumers more choices: pay now with debit, ahead of time with prepaid or later with credit products. For more information, visit www.corporate.visa.com.

Forward Looking Statements:

This press release contains forward–looking statements within the meaning of the U.S. Private Securities Litigation Reform Act of 1995. These statements can be identified by the terms “expect,” “will,” “continue” and similar references to the future. Examples of such forward–looking statements include, but are not limited to, statements we make about gross and net revenue, client incentive payments, expenses, operating margin, tax rate, earnings per share, capital expenditures, free cash flow and the growth of those items.

By their nature, forward-looking statements: (i) speak only as of the date they are made, (ii) are neither statements of historical fact nor guarantees of future performance and (iii) are subject to risks, uncertainties, assumptions and changes in circumstances that are difficult to predict or quantify. Therefore, actual results could differ materially and adversely from those forward-looking statements because of a variety of factors, including the following:

 

 

the impact of new laws, regulations and marketplace barriers, particularly the rules recently promulgated under the Wall Street Reform and Consumer Protection Act, including:

 

   

rules expanding issuers’ and retailers’ choice among debit payment networks;

 

   

rules capping debit interchange rates;

 

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the spread of regulation of debit payments to credit and other product categories;

 

   

the spread of U.S. regulations to other countries;

 

   

rules about consumer privacy and data use and security; and

 

   

designation as a systemically important payment system;

 

 

developments in current or future disputes and our ability to absorb their impact, including interchange; currency conversion; and tax;

 

 

macroeconomic factors such as:

 

   

global economic, political, health, environmental and other conditions;

 

   

cross-border activity and currency exchange rates; and

 

   

material changes in our clients’ performance compared to our estimates;

 

 

industry and systemic developments, such as:

 

   

competitive pressure on client pricing and in the payments industry generally;

 

   

bank and merchant consolidation and their increased focus on payment card costs;

 

   

disintermediation from the payments value stream through government actions or bilateral agreements;

 

   

adverse changes in our relationships and reputation;

 

   

our clients’ failure to fund settlement obligations we have guaranteed;

 

   

disruption of our transaction processing systems or the inability to process transactions efficiently;

 

   

rapid technological developments;

 

   

account data breaches and increased fraudulent and other illegal activity involving our cards; and

 

   

issues arising at Visa Europe, including failure to maintain interoperability between our systems;

 

 

costs arising if Visa Europe were to exercise its right to require us to acquire all of its outstanding stock;

 

 

loss of organizational effectiveness or key employees;

 

 

failure to integrate successfully CyberSource, PlaySpan, Fundamo or other acquisitions;

 

 

changes in accounting principles or treatment; and

the other factors discussed in our most recent Annual Report on Form 10–K. You should not place undue reliance on such statements. Unless required to do so by law, we do not intend to update or revise any forward–looking statement, because of new information or future developments or otherwise.

Contacts:

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

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

 

5


VISA INC.

CONSOLIDATED STATEMENTS OF OPERATIONS

(UNAUDITED)

 

     Three Months Ended
June 30,
    Nine Months Ended
June 30,
 
     2011     2010     2011     2010  
     (in millions, except per share data)  

Operating Revenues

        

Service revenues

   $ 1,055      $ 873      $ 3,156      $ 2,585   

Data processing revenues

     886        792        2,553        2,285   

International transaction revenues

     662        574        1,916        1,671   

Other revenues

     167        183        484        546   

Client incentives

     (448     (393     (1,304     (1,139
  

 

 

   

 

 

   

 

 

   

 

 

 

Total operating revenues

     2,322        2,029        6,805        5,948   
  

 

 

   

 

 

   

 

 

   

 

 

 

Operating Expenses

        

Personnel

     363        285        1,071        869   

Network and processing

     91        103        251        306   

Marketing

     251        277        631        731   

Professional fees

     84        77        222        178   

Depreciation and amortization

     74        63        211        187   

General and administrative

     114        87        319        242   

Litigation provision

     —          —          6        (41
  

 

 

   

 

 

   

 

 

   

 

 

 

Total operating expenses

     977        892        2,711        2,472   
  

 

 

   

 

 

   

 

 

   

 

 

 

Operating income

     1,345        1,137        4,094        3,476   
  

 

 

   

 

 

   

 

 

   

 

 

 

Other Income (Expense)

        

Interest expense

     (11     (13     (19     (57

Investment income, net

     88        1        107        29   

Other

     121        (3     120        (5
  

 

 

   

 

 

   

 

 

   

 

 

 

Total other income (expense)

     198        (15     208        (33
  

 

 

   

 

 

   

 

 

   

 

 

 

Income before income taxes

     1,543        1,122        4,302        3,443   

Income tax provision

     539        406        1,534        1,252   
  

 

 

   

 

 

   

 

 

   

 

 

 

Net income including non-controlling interest

     1,004        716        2,768        2,191   

Loss attributable to non-controlling interest

     1        —          2        1   
  

 

 

   

 

 

   

 

 

   

 

 

 

Net income attributable to Visa Inc.

   $ 1,005      $ 716      $ 2,770      $ 2,192   
  

 

 

   

 

 

   

 

 

   

 

 

 

Basic earnings per share

        

Class A common stock

   $ 1.43      $ 0.97      $ 3.90      $ 2.97   
  

 

 

   

 

 

   

 

 

   

 

 

 

Class B common stock

   $ 0.70      $ 0.56      $ 1.97      $ 1.72   
  

 

 

   

 

 

   

 

 

   

 

 

 

Class C common stock

   $ 1.43      $ 0.97      $ 3.90      $ 2.97   
  

 

 

   

 

 

   

 

 

   

 

 

 

Basic weighted-average shares outstanding

        

Class A common stock

     521        494        506        478   
  

 

 

   

 

 

   

 

 

   

 

 

 

Class B common stock

     245        245        245        245   
  

 

 

   

 

 

   

 

 

   

 

 

 

Class C common stock

     59        99        78        117   
  

 

 

   

 

 

   

 

 

   

 

 

 

Diluted earnings per share

        

Class A common stock

   $ 1.43      $ 0.97      $ 3.89      $ 2.96   
  

 

 

   

 

 

   

 

 

   

 

 

 

Class B common stock

   $ 0.70      $ 0.55      $ 1.96      $ 1.71   
  

 

 

   

 

 

   

 

 

   

 

 

 

Class C common stock

   $ 1.43      $ 0.97      $ 3.89      $ 2.96   
  

 

 

   

 

 

   

 

 

   

 

 

 

Diluted weighted-average shares outstanding

        

Class A common stock

     704        738        712        742   
  

 

 

   

 

 

   

 

 

   

 

 

 

Class B common stock

     245        245        245        245   
  

 

 

   

 

 

   

 

 

   

 

 

 

Class C common stock

     59        99        78        117   
  

 

 

   

 

 

   

 

 

   

 

 

 

 

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VISA INC.

CONSOLIDATED BALANCE SHEETS

(UNAUDITED)

 

     June 30,
2011
    September 30,
2010
 
     (in millions, except par value data)  

Assets

    

Cash and cash equivalents

   $ 3,600      $ 3,867   

Restricted cash - litigation escrow

     2,927        1,866   

Investment securities

    

Trading

     65        60   

Available-for-sale

     155        124   

Settlement receivable

     405        402   

Accounts receivable

     551        476   

Customer collateral

     897        899   

Current portion of client incentives

     195        175   

Current portion of deferred tax assets

     507        623   

Prepaid expenses and other current assets

     214        242   
                

Total current assets

     9,516        8,734   

Restricted cash - litigation escrow

     —          70   

Investment securities, available-for-sale

     7        24   

Client incentives

     109        101   

Property, equipment and technology, net

     1,510        1,357   

Other assets

     184        197   

Intangible assets, net

     11,453        11,478   

Goodwill

     11,668        11,447   
                

Total assets

   $ 34,447      $ 33,408   
                

Liabilities

    

Accounts payable

   $ 93      $ 137   

Settlement payable

     465        406   

Customer collateral

     897        899   

Accrued compensation and benefits

     334        370   

Client incentives

     606        418   

Accrued liabilities

     611        625   

Current portion of long-term debt

     13        12   

Current portion of accrued litigation

     512        631   
                

Total current liabilities

     3,531        3,498   

Long-term debt

     22        32   

Accrued litigation

     —          66   

Deferred tax liabilities

     4,254        4,181   

Other liabilities

     588        617   
                

Total liabilities

     8,395        8,394   
                

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, 519 and 493 shares issued and outstanding at June 30, 2011 and September 30, 2010, respectively

     —          —     

Class B common stock, $0.0001 par value, 622 shares authorized, 245 shares issued and outstanding at June 30, 2011 and September 30, 2010

     —          —     

Class C common stock, $0.0001 par value, 1,097 shares authorized, 52 and 97 shares issued and outstanding at June 30, 2011 and September 30, 2010, respectively

     —          —     

Additional paid-in capital

     20,056        20,794   

Accumulated income

     6,130        4,368   

Accumulated other comprehensive income (loss), net

    

Investment securities, available-for-sale

     —          3   

Defined benefit pension and other postretirement plans

     (112     (115

Derivative instruments classified as cash flow hedges

     (33     (40

Foreign currency translation gain

     9        1   
                

Total accumulated other comprehensive loss, net

     (136     (151
                

Total Visa Inc. stockholders’ equity

     26,050        25,011   

Non-controlling interest

     2        3   
                

Total equity

     26,052        25,014   
                

Total liabilities and equity

   $ 34,447      $ 33,408   
                

 

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VISA INC.

CONSOLIDATED STATEMENTS OF CASH FLOWS

(UNAUDITED)

 

     Nine Months Ended June 30,  
     2011     2010  
     (in millions)  

Operating Activities

    

Net income including non-controlling interest

   $ 2,768      $ 2,191   

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

    

Amortization of client incentives

     1,304        1,139   

Fair value adjustment for the Visa Europe put option

     (122     —     

Share-based compensation

     122        95   

Excess tax benefit for share-based compensation

     (12     (13

Depreciation and amortization of property, equipment and technology and intangible assets

     211        187   

Litigation provision and accretion

     15        (18

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

     (3     (17

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

     (86     3   

Deferred income taxes

     169        190   

Other

     (18     (9

Change in operating assets and liabilities:

    

Trading securities

     (5     3   

Settlement receivable

     3        189   

Accounts receivable

     (70     (57

Client incentives

     (1,144     (999

Other assets

     30        (27

Accounts payable

     (47     (62

Settlement payable

     52        (188

Accrued compensation and benefits

     (37     (107

Accrued and other liabilities

     74        195   

Accrued litigation

     (200     (897
  

 

 

   

 

 

 

Net cash provided by operating activities

     3,004        1,798   
  

 

 

   

 

 

 

Investing Activities

    

Acquisitions, net of cash received of $22

     (268     —     

Purchases of property, equipment and technology

     (236     (144

Proceeds from disposal of property, equipment and technology

     —          1   

Distributions from money market investment

     —          85   

Investment securities, available-for-sale:

    

Purchases

     (50     (1

Proceeds from sales and maturities

     35        50   

Purchases of / contributions to other investments

     (10     (3

Proceeds / distributions from other investments

     104        2   
  

 

 

   

 

 

 

Net cash used in investing activities

     (425     (10
  

 

 

   

 

 

 

Financing Activities

    

Repurchase of class A common stock

     (1,600     (664

Dividends paid

     (320     (278

Deposits into litigation escrow account - retrospective responsibility plan

     (1,200     (500

Payment from litigation escrow account - retrospective responsibility plan

     210        210   

Cash proceeds from exercise of stock options

     63        36   

Excess tax benefit for share-based compensation

     12        13   

Principal payments on debt

     (9     (9

Principal payments on capital lease obligations

     (10     (10
  

 

 

   

 

 

 

Net cash used in financing activities

     (2,854     (1,202
  

 

 

   

 

 

 

Effect of exchange rate changes on cash and cash equivalents

     8        2   
  

 

 

   

 

 

 

(Decrease) increase in cash and cash equivalents

     (267     588   

Cash and cash equivalents at beginning of year

     3,867        4,617   
  

 

 

   

 

 

 

Cash and cash equivalents at end of period

   $ 3,600      $ 5,205   
  

 

 

   

 

 

 

Supplemental Disclosure of Cash Flow Information

    

Income taxes paid, net of refunds

   $ 1,251      $ 977   

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

   $ 17      $ 15   

Interest payments on debt

   $ 2      $ 3   

 

8


VISA INC.

FISCAL 2010 AND 2011 QUARTERLY RESULTS OF OPERATIONS

(UNAUDITED)

 

     Fiscal 2010 Quarter Ended     Fiscal 2011 Quarter Ended  
     June 30,
2010
    September 30,
2010
    December 31,
2010
    March 31,
2011
    June 30,
2011
 
     (in millions)  

Operating Revenues

          

Service revenues

   $ 873      $ 912      $ 1,008      $ 1,093      $ 1,055   

Data processing revenues (1)

     792        840        844        823        886   

International transaction revenues

     574        619        630        624        662   

Other revenues (2)

     183        167        161        156        167   

Client incentives

     (393     (421     (405     (451     (448
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total operating revenues

     2,029        2,117        2,238        2,245        2,322   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Operating Expenses

          

Personnel

     285        353        357        351        363   

Network and processing (1)

     103        119        80        80        91   

Marketing (2)

     277        233        197        183        251   

Professional fees

     77        108        61        77        84   

Depreciation and amortization

     63        78        67        70        74   

General and administrative

     87        117        110        95        114   

Litigation provision

     —          (4     —          6        —     
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total operating expenses

     892        1,004        872        862        977   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Operating income (1) (2)

     1,137        1,113        1,366        1,383        1,345   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Other Income (Expense)

          

Interest (expense) income

     (13     (15     4        (12     (11

Investment income, net

     1        20        10        9        88   

Other

     (3     77        2        (3     121   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total other (expense) income

     (15     82        16        (6     198   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Income before income taxes

     1,122        1,195        1,382        1,377        1,543   

Income tax provision

     406        422        498        497        539   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net income including non-controlling interest

     716        773        884        880        1004   

Loss attributable to non-controlling interest

     —          1        —          1        1   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net income attributable to Visa Inc. (1) (2)

   $ 716      $ 774      $ 884      $ 881      $ 1,005   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

 

(1) 

As previously announced, beginning in the first quarter of fiscal 2011, the Company changed its presentation for non-Visa transactions pass-through revenues and expenses from a gross reporting to a net reporting basis. Previously, pass-through revenues were recorded in data processing and related expenses were recorded in network and processing. This change in presentation does not impact operating income or net income attributable to Visa Inc. as revenue and expense amounts completely offset. On a quarterly basis, related fiscal 2010 revenues and expenses were $35 million in Q3 and $38 million in Q4. These amounts will not recur in fiscal 2011 as a result of this change in presentation.

 

(2) 

As previously announced, as a result of certain contractual changes relating to our Visa Extras rewards platform, certain fiscal 2010 revenues recorded in other revenues, and expenses recorded in marketing, will not recur in fiscal 2011. These changes do not impact operating income or net income attributable to Visa Inc. as revenue and expense amounts completely offset. On a quarterly basis, related fiscal 2010 revenues and expenses were $27 million in Q3 and $7 million in Q4.

 

9


LOGO

Operational Performance Data

The tables below provide information regarding the available operational results for the 3 months ended June 30, 2011, as well as the prior four quarterly reporting periods and the 12 months ended June 30, 2011 and 2010, for cards carrying the Visa, Visa Electron and Interlink brands. Also included is a table with information on the number of billable transactions processed on Visa Inc.’s CyberSource network.

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, 2011  
    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

  $ 377        21.8     12.4   $ 246        24.4     13.7     2,744      $ 130        17.2     10.1     593   

Canada

    60        13.7     7.7     55        14.3     8.4     474        5        6.9     1.3     10   

CEMEA

    204        32.1     26.8     35        42.9     36.7     530        169        30.1     24.9     991   

LAC

    245        32.2     23.3     86        38.3     28.7     1,830        159        29.1     20.5     911   

US

    624        10.2     10.2     518        10.5     10.5     10,415        106        8.8     8.8     901   
 

 

 

       

 

 

       

 

 

   

 

 

       

 

 

 

Visa Inc.

    1,510        19.0     14.7     941        17.3     13.5     15,993        569        22.1     16.7     3,407   

Visa Credit Programs

                     

US

  $ 235        9.7     9.7   $ 224        9.8     9.8     2,569      $ 11        6.1     6.1     17   

Rest of World

    399        24.8     15.5     348        25.2     15.7     4,056        52        22.1     14.8     180   
 

 

 

       

 

 

       

 

 

   

 

 

       

 

 

 

Visa Inc.

    634        18.7     13.3     571        18.7     13.3     6,625        62        18.9     13.1     197   

Visa Debit Programs

                     

US

  $ 390        10.5     10.5   $ 295        10.9     10.9     7,846      $ 95        9.1     9.1     885   

Rest of World

    487        27.4     20.2     75        35.5     26.3     1,522        412        26.0     19.1     2,326   
 

 

 

       

 

 

       

 

 

   

 

 

       

 

 

 

Visa Inc.

    876        19.3     15.7     369        15.2     13.7     9,368        507        22.5     17.1     3,211   

 

    For the 3 Months Ended March 31, 2011  
    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

  $ 352        18.7     12.4   $ 230        18.5     11.8     2,629      $ 121        19.0     13.5     578        476        573   

Canada

    52        12.3     7.3     48        11.4     6.5     420        5        21.2     15.8     9        25        33   

CEMEA

    177        26.5     24.9     30        33.8     31.2     483        147        25.1     23.7     906        226        225   

LAC

    222        26.8     20.5     77        32.5     25.9     1,740        145        23.9     17.8     860        360        389   

US

    576        11.2     11.2     477        11.6     11.6     9,580        99        9.2     9.2     839        510        650   
 

 

 

       

 

 

       

 

 

   

 

 

       

 

 

   

 

 

   

 

 

 

Visa Inc.

    1,379        17.2     14.4     862        15.7     13.1     14,853        517        19.9     16.6     3,193        1,598        1,870   

Visa Credit Programs

                         

US

  $ 209        7.6     7.6   $ 199        9.1     9.1     2,283      $ 10        -15.7     -15.7     15        197        256   

Rest of World

    364        19.2     13.2     318        19.1     12.9     3,825        46        19.9     15.5     163        444        504   
 

 

 

       

 

 

       

 

 

   

 

 

       

 

 

   

 

 

   

 

 

 

Visa Inc.

    573        14.7     11.1     517        15.1     11.4     6,108        56        11.7     8.5     177        641        760   

Visa Debit Programs

                         

US

  $ 367        13.3     13.3   $ 278        13.4     13.4     7,297      $ 89        12.8     12.8     824        312        395   

Rest of World

    439        24.4     19.9     68        31.8     26.1     1,448        372        23.2     18.9     2,192        644        715   
 

 

 

       

 

 

       

 

 

   

 

 

       

 

 

   

 

 

   

 

 

 

Visa Inc.

    806        19.1     16.8     345        16.6     15.7     8,745        461        21.0     17.6     3,016        956        1,110   

 

10


Operational Performance Data

 

 

    For the 3 Months Ended December 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

  $ 361        13.6     7.9   $ 240        21.9     15.3     2,767      $ 121        0.2     -4.1     591        473        571   

Canada

    58        12.1     7.6     53        11.3     6.8     467        5        22.8     17.9     9        25        33   

CEMEA

    184        25.6     26.6     30        32.8     31.5     478        154        24.3     25.7     955        219        222   

LAC

    233        21.4     19.0     81        26.0     25.8     1,822        151        19.1     15.6     914        358        387   

US

    591        11.5     11.5     493        12.5     12.5     9,999        98        7.0     7.0     850        530        685   
 

 

 

       

 

 

       

 

 

   

 

 

       

 

 

   

 

 

   

 

 

 

Visa Inc.

    1,427        15.3     13.3     898        16.6     14.5     15,533        530        13.2     11.3     3,319        1,605        1,898   

Visa Credit Programs

                         

US

  $ 226        5.4     5.4   $ 216        7.6     7.6     2,534      $ 10        -27.0     -27.0     16        205        267   

Rest of World

    381        20.1     15.2     334        19.8     14.7     4,008        48        22.6     18.7     167        442        503   
 

 

 

       

 

 

       

 

 

   

 

 

       

 

 

   

 

 

   

 

 

 

Visa Inc.

    608        14.2     11.3     550        14.7     11.8     6,542        58        9.5     6.9     183        647        770   

Visa Debit Programs

                         

US

  $ 365        15.8     15.8   $ 277        16.6     16.6     7,465      $ 88        13.1     13.1     834        324        419   

Rest of World

    454        16.5     14.1     71        33.3     30.0     1,526        384        13.8     11.6     2,302        633        709   
 

 

 

       

 

 

       

 

 

   

 

 

       

 

 

   

 

 

   

 

 

 

Visa Inc.

    820        16.1     14.8     348        19.7     19.1     8,991        472        13.7     11.9     3,136        957        1,127   

 

    For the 3 Months Ended September 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)
    Accounts
(millions)
    Cards
(millions)
 

All Visa Credit & Debit

                         

Asia Pacific

  $ 326        16.2     11.9   $ 212        16.2     12.2     2,681      $ 114        16.2     11.4     595        467        556   

Canada

    53        10.4     7.4     49        10.2     7.2     450        5        12.0     8.9     9        24        32   

CEMEA

    164        22.1     23.3     27        26.4     27.5     418        137        21.3     22.4     860        208        212   

LAC

    204        22.4     20.2     69        24.0     23.8     1,634        135        21.6     18.4     873        356        385   

US

    574        12.3     12.3     474        13.5     13.5     9,758        100        7.1     7.1     870        502        668   
 

 

 

       

 

 

       

 

 

   

 

 

       

 

 

   

 

 

   

 

 

 

Visa Inc.

    1,320        15.8     14.4     830        15.1     13.9     14,941        491        16.9     15.2     3,207        1,557        1,852   

Visa Credit Programs

                         

US

  $ 217        3.3     3.3   $ 207        6.4     6.4     2,431      $ 10        -35.9     -35.9     17        208        269   

Rest of World

    338        14.6     11.6     295        14.5     11.5     3,835        43        15.3     12.5     157        439        501   
 

 

 

       

 

 

       

 

 

   

 

 

       

 

 

   

 

 

   

 

 

 

Visa Inc.

    555        9.9     8.2     503        11.0     9.3     6,266        53        0.2     -1.6     174        647        770   

Visa Debit Programs

                         

US

  $ 356        18.6     18.6   $ 266        19.7     19.7     7,327      $ 90        15.7     15.7     853        294        399   

Rest of World

    409        22.2     20.1     61        34.2     32.4     1,347        348        20.3     18.1     2,180        616        683   
 

 

 

       

 

 

       

 

 

   

 

 

       

 

 

   

 

 

   

 

 

 

Visa Inc.

    765        20.5     19.4     327        22.1     21.8     8,675        438        19.3     17.6     3,033        910        1,082   

 

    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)
    Accounts
(millions)
    Cards
(millions)
 

All Visa Credit & Debit

                         

Asia Pacific

  $ 309        19.3     12.4   $ 198        19.9     12.5     2,580      $ 111        18.1     12.3     581        458        545   

Canada

    53        17.5     7.5     48        18.1     8.1     434        5        11.5     2.1     9        24        31   

CEMEA

    154        27.0     25.7     24        30.9     28.5     394        130        26.3     25.2     852        203        204   

LAC

    185        23.2     16.3     62        25.8     21.1     1,519        123        21.9     14.0     849        353        382   

US

    567        12.1     12.1     469        13.8     13.8     9,515        97        4.9     4.9     855        492        675   
 

 

 

       

 

 

       

 

 

   

 

 

       

 

 

   

 

 

   

 

 

 

Visa Inc.

    1,269        17.3     14.1     802        16.8     14.0     14,441        467        18.0     14.3     3,145        1,530        1,837   

Visa Credit Programs

                         

US

  $ 214        2.3     2.3   $ 204        5.9     5.9     2,347      $ 10        -39.3     -39.3     17        210        274   

Rest of World

    320        18.7     11.7     278        18.6     11.6     3,679        42        19.3     12.4     155        436        499   
 

 

 

       

 

 

       

 

 

   

 

 

       

 

 

   

 

 

   

 

 

 

Visa Inc.

    534        11.5     7.9     481        12.9     9.2     6,026        53        0.2     -3.1     171        646        772   

Visa Debit Programs

                         

US

  $ 353        19.1     19.1   $ 266        20.6     20.6     7,168      $ 87        14.8     14.8     838        282        401   

Rest of World

    382        24.5     19.3     55        38.0     31.0     1,248        327        22.4     17.5     2,136        601        664   
 

 

 

       

 

 

       

 

 

   

 

 

       

 

 

   

 

 

   

 

 

 

Visa Inc.

    735        21.8     19.2     321        23.3     22.4     8,415        414        20.7     17.0     2,974        884        1,065   

 

11


Operational Performance Data

 

 

    For the 12 Months Ended June 30, 2011  
    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

  $ 1,416        17.6     11.1   $ 929        20.3     13.3     10,821      $ 487        12.6     7.2     2,357   

Canada

    224        12.2     7.5     204        11.9     7.2     1,811        19        15.3     10.5     38   

CEMEA

    729        26.7     25.5     122        34.3     32.0     1,909        607        25.3     24.2     3,713   

LAC

    903        25.7     20.8     313        30.3     26.2     7,025        590        23.4     18.1     3,558   

US

    2,365        11.3     11.3     1,962        12.0     12.0     39,753        403        8.0     8.0     3,460   
 

 

 

       

 

 

       

 

 

   

 

 

       

 

 

 

Visa Inc.

    5,637        16.9     14.2     3,530        16.2     13.8     61,320        2,106        18.0     14.9     13,126   

Visa Credit Programs

                     

US

  $ 887        6.5     6.5   $ 846        8.2     8.2     9,817      $ 41        -20.5     -20.5     65   

Rest of World

    1,482        19.8     14.0     1,294        19.7     13.8     15,724        188        20.1     15.4     666   
 

 

 

       

 

 

       

 

 

   

 

 

       

 

 

 

Visa Inc.

    2,369        14.4     11.0     2,140        14.9     11.5     25,541        229        10.0     6.8     731   

Visa Debit Programs

                     

US

  $ 1,478        14.4     14.4   $ 1,116        15.0     15.0     29,935      $ 362        12.6     12.6     3,395   

Rest of World

    1,789        22.6     18.5     274        33.7     28.5     5,843        1,515        20.7     16.8     9,000   
 

 

 

       

 

 

       

 

 

   

 

 

       

 

 

 

Visa Inc.

    3,267        18.7     16.6     1,390        18.2     17.4     35,778        1,877        19.1     16.0     12,395   

 

    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)
    Accounts
(millions)
    Cards
(millions)
 

All Visa Credit & Debit

                         

Asia Pacific

  $ 1,205        22.8     13.6   $ 772        21.3     11.3     10,056      $ 433        25.5     18.0     2,237        458        545   

Canada

    199        14.9     3.0     182        17.4     5.2     1,663        17        -6.5     -16.3     35        24        31   

CEMEA

    575        13.4     14.6     91        21.3     17.6     1,425        484        12.1     14.0     3,155        203        204   

LAC

    718        23.5     14.3     240        27.3     18.6     5,837        478        21.7     12.3     3,355        353        382   

US

    2,126        6.1     6.1     1,752        8.1     8.1     35,241        373        -2.2     -2.2     3,142        492        675   
 

 

 

       

 

 

       

 

 

   

 

 

       

 

 

   

 

 

   

 

 

 

Visa Inc.

    4,823        13.6     10.0     3,038        13.5     9.8     54,222        1,785        13.7     10.4     11,926        1,530        1,837   

Visa Credit Programs

                         

US

  $ 833        -5.4     -5.4   $ 782        -0.4     -0.4     9,139      $ 51        -46.5     -46.5     73        210        274   

Rest of World

    1,238        17.7     8.6     1,081        19.4     9.8     14,222        157        7.1     1.1     573        436        499   
 

 

 

       

 

 

       

 

 

   

 

 

       

 

 

   

 

 

   

 

 

 

Visa Inc.

    2,071        7.2     2.7     1,862        10.2     5.4     23,361        208        -14.1     -16.7     646        646        772   

Visa Debit Programs

                         

US

  $ 1,292        15.2     15.2   $ 971        16.0     16.0     26,101      $ 322        12.7     12.7     3,069        282        401   

Rest of World

    1,460        22.5     17.3     205        36.1     26.0     4,759        1,255        20.5     16.0     8,210        601        664   
 

 

 

       

 

 

       

 

 

   

 

 

       

 

 

   

 

 

   

 

 

 

Visa Inc.

    2,752        18.9     16.3     1,175        19.0     17.7     30,860        1,577        18.8     15.3     11,280        884        1,065   

 

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. Effective with 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, 2011

     20     14

Mar 31, 2011

     16     13

Dec 31, 2010

     16     15

Sep 30, 2010

     16     16

Jun 30, 2010

     20     17

12 Months Ended

    

Jun 30, 2011

     17     14

Jun 30, 2010

     8     6

3. Visa Processed Transactions

The table below represents transactions involving Visa, Visa Electron, Interlink and PLUS cards processed on Visa’s networks. CyberSource transactions are not included in this table and are reported in the next section.

 

Period

   Processed
Transactions
(millions)
     Growth  

3 Months Ended

     

Jun 30, 2011

     13,038         11

Mar 31, 2011

     12,040         13

Dec 31, 2010

     12,580         15

Sep 30, 2010

     12,119         16

Jun 30, 2010

     11,721         14

12 Months Ended

     

Jun 30, 2011

     49,778         14

Jun 30, 2010

     43,755         12

 

14


Operational Performance Data

 

 

4. CyberSource Transactions

The table below represents billable transactions processed on Visa Inc.’s CyberSource network.

 

Period

   Billable
Transactions
(millions)
     Growth  

3 Months Ended

     

Jun 30, 2011

     1,045         38

Mar 31, 2011

     1,018         38

Dec 31, 2010

     987         40

Sep 30, 2010

     829         36

Jun 30, 2010

     758         31

12 Months Ended

     

Jun 30, 2011

     3,879         38

Jun 30, 2010

     2,814         31

 

15