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©2013 MasterCard. Proprietary CLSA Investors’ Forum 2013 Hong Kong MasterCard Incorporated Ann Cairns President, International Markets September 2013
©2013 MasterCard. Proprietary
CLSA Investors’ Forum 2013 Hong Kong
MasterCard Incorporated
Ann Cairns President, International Markets September 2013
©2013 MasterCard. Proprietary
Safe Harbor Language Regarding Forward-Looking Statements
2
Statements in this presentation that are not reported financial results or other historical information are “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements are based on reasonable assumptions, plans, estimates and expectations, and are not guarantees of future performance. They are based on management’s expectations that involve a number of business risks and uncertainties, any of which could cause actual results to differ materially from those expressed in or implied by the forward-looking statements.
The Company undertakes no obligation to publicly update or revise any forward-looking statement. The risks and uncertainties relating to the forward-looking statements in this presentation include those described under the caption “Risk Factors” and “Forward-Looking Statements” in the Company’s most recent Form 10-K, Form 10-Qs and/or any Form 8-Ks filed or furnished with the U.S. Securities and Exchange Commission.
©2013 MasterCard. Proprietary
• New consumers, new merchants • New payment flows • Cash conversion
Executing on Our Strategy
Personal Consumption Expenditure
Cash & Check vs. Electronic Payments “Grow the Pie”
MA Share of Electronic Payments “Grow Share”
• Differentiated products • Processing
Grow Share Grow the Pie
Convergence of physical & digital
September 2013
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©2013 MasterCard. Proprietary
Capitalizing on Two Megatrends All Markets, All Segments
Conversion of Cash to Electronic Payments
Convergence of Physical and Digital
1 Cisco Visual Networking Index; Index Mundi World Demographics Profile 2013
85% of the world’s transactions are cash & check • Aligned with government goals
• Consumer and merchant extension huge
66% of the world’s adults connected by 20161
• Enables inclusion, issuance, acceptance
• Improves buying and selling experience
Conversion to a World Beyond Cash
September 2013
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©2013 MasterCard. Proprietary
Growing Share and Growing the Pie
GROW
Core Businesses Faster than Market
DIVERSIFY
Customers and Geographies
New, High-Growth Scalable Businesses
BUILD
• Consumer Credit
• Debit
• Commercial
• Prepaid
• Processing
• Governments
• Merchants
• Unbanked and underbanked
• New markets
• Convergence of physical and digital
• Advisors and Information Services
Data & technology driven locally executed
September 2013
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©2013 MasterCard. Proprietary
Governments & NGOs Merchants Consumers
• New merchant value propositions
• Targeting • Connecting buyers
and sellers
• Expanding reach • Driving financial inclusion • Driving efficiency
• Tailoring value propositions
• Increasing consumer engagement
Grow Share Differentiated Value to Broader Set of Stakeholders Driving Results
September 2013
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©2013 MasterCard. Proprietary
Grow Share Expanding Processing Capabilities
Acquirer
Acquiring Processor
Issuer
POI (Merchant / ATM)
Issuing Processor
MasterCard Network
Switch
IPS Access
ECS Trevica
MiGS SPS
DataCash ECS
Trevica
Expand Issuer Processing Expand Acquirer Processing
Touch more transactions; beyond traditional role as network processor
September 2013
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©2013 MasterCard. Proprietary
Grow the Pie New Consumers & New Merchants
The Next 500 Million Consumers
100 Million Merchants
• Unbanked and underbanked
• Market organizing – Source of funds
– Storage of funds
– Use of funds
• New small merchants
• Underpenetrated categories
• Acquirers & non-traditional partners
• Scale new streamlined acceptance models
Convergence of physical and digital improves opportunity
September 2013
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©2013 MasterCard. Proprietary
Regional Markets Overview
GDV Growth 1H 2013 (Local Currency)
Latin America GDV 16%
Europe GDV 13%
APMEA GDV 21%
North America GDV 5%
September 2013
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©2013 MasterCard. Proprietary
Long-Term Revenue Growth
2011-2016E CAGR (in %)
MasterCard Long-Term Revenue
Global PCE
Secular Growth 4-6%
5%
9-11% Low-Mid
Teens 8-10%
Industry Purchase Volume
MA Market Opportunity
Strategic Investments (1%)
Source: EIU, Euromonitor and internal estimates
Adj. for Available Market
September 2013
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©2013 MasterCard. Proprietary
Longer-Term 2013 – 2015 Performance Objectives*
Net Revenue Growth
Operating Margin
Earnings Per Share Growth Rate At least 20% CAGR
Minimum 50% annually
11-14% CAGR
* On a constant currency basis and excluding future acquisitions
September 2013
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©2013 MasterCard. Proprietary
Some Concluding Thoughts
Strategy efforts paying off; focus on scaling
Cash converting to electronic is an enormous opportunity; get at it faster
Opportunity in convergence of physical and digital is big; we are aligned, investing and determined
Don’t take eye off the basics; deliver the core
Drive innovation, technology, execution; will set us apart
September 2013
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©2013 MasterCard. Proprietary
