Mastercard Investor Presentation — October 2017 - Mastercard

October 31, 2017 Mastercard Incorporated Third-Quarter 2017 Financial Results Conference Call Warren Kneeshaw: [See Separate Document]

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October 31, 2017 Mastercard

Third-Quarter 2017 Financial Results Conference Call

Financial & Operational Overview

3rd Quarter Selected Financial Performance

($ in millions, except per share data)

3Q 17 3Q 16 GAAP Neutral

Net revenue $ 3,398 $ 2,880 18% 17%

Total operating expenses 1,457 1,210 20% 19%

Operating income 1,941 1,670 16% 14%

Operating margin 57.1 % 58.0 % (0.9) ppt (1.1) ppt

Net income $ 1,430 $ 1,184 21% 19%

Diluted EPS $ 1.34 $ 1.08 24% 23%

Effective tax rate 26.0 % 27.5 %

Note: Figures may not sum due to rounding.

Martina Hund-Mejean:

Thanks Ajay, and good morning everyone. As you can see in the highlights on page 3 , we have delivered another record

quarter. F/X had a benefit to as-reported results, primarily due to the strength of the Euro. For the remainder of my remarks,

I will call out the growth numbers on a currency-neutral basis.

•Net Revenue grew 17% , driven by strong underlying performance, and includes approximately a two and a half [ 2.5 ppt ]

benefit from acquisitions. This was in line with our previous expectations.

•Operating Expenses increased by 19% and includes an 8 ppt impact due to acquisitions, primarily Vocalink.

•Operating income was up 14%, while Net Income was up by a healthy 19% , beneftitting from a lower tax rate .

•EPS was $1.34 , up 23% year-over-year, driven primarily by our strong operating performance, with share repurchases

contributing 4 cents per share. During the quarter, we repurchased $838 million worth of stock and an additional $286

3Q16 3Q17 3Q16 3Q17 3Q16 3Q17$647$706

$182 $198$465 $508$572$647

$201 $209$371$439Worldwide Rest of World

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