Mastercard Investor Presentation — April 2020 - Mastercard

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Ajay Banga & Michael Miebach:

1st Quarter Selected Financial Performance

($ in millions, except per share data)

1Q 20 1Q 19 Currency

Non-GAAP Non-GAAP As adjusted Neutral

Net revenue $ 4,009 $ 3,889 3% 5%

Adjusted operating expenses 1,792 1,676 7% 8%

Adjusted operating income 2,218 2,213 —% 2%

Adjusted operating margin 55.3 % 56.9 % (1.6 )ppt (1.4 )ppt

Adjusted net income $ 1,844 $ 1,828 1% 3%

Adjusted diluted EPS $ 1.83 $ 1.78 3% 6%

Adjusted effective tax rate 14.9 % 16.8 %

Note: See Appendix A for Non-GAAP reconciliation.

Thanks, Michael. As Ajay and Michael mentioned, this truly is an unprecedented time for us all. Before I

get into the numbers, I would like to take a moment to acknowledge the resiliency of the team here at

Mastercard, who have maintained their focus in supporting our business, our customers and partners and

each other during this challenging period.

In light of the current circumstances, I will focus most of my comments today on the trends that we have

seen recently, but I will start by walking you through our Q1 results. Turning to page 3 , here are a few

highlights, on a currency-neutral basis and excluding both special items and the impact of gains and

losses on the company's equity investments.

•Net Revenue grew 5%, with acquisitions contributing approximately 1 ppt to this growth.

•Total Operating Expenses increased 8%, which includes a 6 ppt increase related to acquisitions.

•Operating Income grew by 2%, and Net Income was up 3%, both of which include a 3 ppt reduction

due to acquisitions.

•EPS grew 6% year-over-year to $1.83 , which includes 5 cents of dilution related to our recent

acquisitions offset by a 4 cent contribution from share repurchases.

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