Mastercard Investor Presentation — October 2021 - Mastercard

Mastercard Incorporated Third -Quarter 2021 Financial Results Conference Call October 28, 2021

Document content

Third -Quarter 2021 Financial Results Conference Call

3rd Quarter Selected Financial Performance

($ in millions, except per share data)

3Q 21 3Q 20 YOY Growth

Non-GAAP Non-GAAP As adjusted Currency-neutral

Net revenue $ 4,985 $ 3,837 30% 29%

Adjusted operating expenses 2,158 1,732 25% 23%

Adjusted operating income 2,827 2,105 34% 34%

Adjusted operating margin 56.7 % 54.9 % 1.8 ppt 2.0 ppt

Adjusted net income $ 2,341 $ 1,605 46% 45%

Adjusted diluted EPS $ 2.37 $ 1.60 48% 48%

Adjusted effective tax rate 14.4 % 20.0 %

Note: See Appendix A for Non-GAAP reconciliation.

Thanks, Michael. Turning to page 3 , which shows our financial performance for the quarter on a currency-

neutral basis excluding special items and the impact of gains and losses on our equity investments.

•Net Revenue was up 29% , reflecting the continued execution of our strategy and the ongoing recovery

in spending. Acquisitions contributed 3 ppt to this growth.

•Operating Expenses increased 23% , including an 8 ppt increase from acquisitions.

•Operating Income was up 34% , and Net Income was up 45% , both of which include a 1 ppt decrease

related to acquisitions. Further, Net Income growth was also positively impacted by 6 ppt due to the

recognition of higher one-time discrete U.S. tax benefits versus year-ago.

•EPS was up 48% year-over-year to $2.37 cents , which includes 2 cents of dilution related to our

recent acquisitions offset by a 4 cent contribution from share repurchases.

•During the quarter, we repurchased $1.6 billion worth of stock and an additional $361 million through

$214$292$523$622$909$1,079

Credit Debit / Prepaid3Q20 3Q21 3Q20 3Q21 3Q20 3Q21$0$200$400$600$800$1,000$1,200$1,400$1,600$1,800Worldwide United States Rest of World

20% Growth 20% Growth 20% Growth

Preview truncated — download the full document for the complete content.