Exhibit 99.1

 

 

 

Visa Inc. Posts Strong Fiscal Second Quarter 2012 Earnings Results

 

 

 

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GAAP quarterly net income of $1.3 billion including non-cash tax benefit

 

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Adjusted quarterly net income of $1.1 billion or $1.60 per diluted class A common share excluding non-cash tax benefit

SAN FRANCISCO, CA, May 2, 2012 – Visa Inc. (NYSE: V) today announced financial results for the Company’s fiscal second quarter 2012 ended March 31, 2012. GAAP net income for the quarter, inclusive of a one-time non-cash benefit related to the remeasurement of existing net deferred tax liabilities, was $1.3 billion.

On an adjusted basis, excluding this non-cash benefit, net income for the quarter was $1.1 billion, an increase of 23% over the prior year, and diluted class A common stock earnings per share were $1.60, an increase of 30% over the prior year. The weighted-average number of diluted class A common stock outstanding was approximately 676 million. The Company’s adjusted quarterly net income per share of class A common stock 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 second quarter of 2012 was $2.6 billion, an increase of 15% over the prior year and driven by strong double-digit growth in service revenues, data processing revenues and international transaction revenues.

“Our strong financial performance this quarter was fueled by continued growth of U.S. credit products, strong cross border spending and expansion of Visa’s core business in international markets,” said Joseph Saunders, Chairman and Chief Executive Officer, Visa Inc. “Across the globe Visa’s business continues to expand at a healthy pace, the result of our commitment to continued expansion in our core business as well as our ability to leverage innovative payment technologies.”

Fiscal Second Quarter 2012 Financial Highlights:

Payments volume growth, on a constant dollar basis, for the three months ended December 31, 2011, on which fiscal second quarter service revenue is recognized, was a positive 11% over the prior year at $993 billion.

 

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Payments volume growth, on a constant dollar basis, for the three months ended March 31, 2012, was a positive 11% over the prior year at $956 billion.

Cross-border volume growth, on a constant dollar basis, was a positive 16% for the three months ended March 31, 2012.

Total processed transactions, which represent transactions processed by VisaNet, for the three months ended March 31, 2012, were 13 billion, a positive 8% increase over the prior year.

Fiscal second quarter 2012 service revenues were $1.2 billion, an increase of 13% 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 $922 million. International transaction revenues, which are driven by cross-border activity, grew 17% over the prior year to $733 million. Other revenues, which include the Visa Europe licensing fee, were $179 million, a 14% increase over the prior year. Client incentives, which are a contra revenue item, were $497 million and represent 16% of gross revenues.

Total operating expenses were $972 million for the quarter, a 13% increase over the prior year, primarily due to higher personnel costs associated with acquisitions and investments in technology projects to support our growth initiatives.

Cash, cash equivalents, restricted cash, and available-for-sale investment securities were $8.9 billion at March 31, 2012.

Visa’s GAAP effective tax rate was 19.7% for the quarter ended March 31, 2012. On an adjusted basis, the effective tax rate was 32.6%.

Notable Event:

As announced on April 26, 2012, the Board of Directors declared a quarterly dividend in the aggregate amount of $0.22 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 June 5, 2012, to all holders of record of the Company’s class A, class B and class C common stock as of May 18, 2012.

 

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Financial Outlook:

Visa Inc. updates its financial outlook for the following metric through 2012:

 

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Adjusted annual diluted class A common stock earnings per share growth: High teens to low twenties.

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

 

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Annual net revenue growth in the low double digits;

 

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Client incentives as a percent of gross revenues: 17% to 18% range;

 

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Marketing expenses: Under $1 billion;

 

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Annual operating margin of about 60%;

 

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Adjusted tax rate: 33% to 34% range*;

 

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Capital expenditures $350 million to $400 million range; and

 

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Annual free cash flow greater than $4 billion.

* Financial Outlook excludes the impact of a non-cash benefit related to the remeasurement of deferred tax liabilities, which would decrease the GAAP tax rate to 29 to 30%. These deferred tax liabilities are primarily associated with indefinite-lived intangible assets recorded as part of Visa’s October 2007 reorganization.

Fiscal Second Quarter 2012 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.

 

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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 “continue,” “could,” “may,” “potential,” and similar references to the future. Examples of such forward-looking statements include, but are not limited to, statements we make about our strategy and its execution and about our revenue, earnings per share, incentive payments, expenses, operating margin, tax rate, capital expenditures and 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:

 

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the impact of new laws, regulations and marketplace barriers, including:

 

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rules capping debit interchange reimbursement fees promulgated under the U.S. Wall Street Reform and Consumer Protection Act, or the Reform Act;

 

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rules under the Reform Act expanding issuers’ and merchants’ choice among debit payment networks;

 

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U.S. government and other parties’ reactions to the changes we have made to our business in response to the Reform Act;

 

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increased regulation outside the United States and in other product categories; and

 

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rules about consumer privacy and data use and security;

 

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developments in current or future litigation or government enforcement, including interchange, antitrust and tax disputes;

 

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economic factors, such as:

 

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an increase or spread of the current European crisis involving sovereign debt and the euro;

 

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other global economic, political and health conditions;

 

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cross-border activity and currency exchange rates; and

 

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

 

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industry developments, such as competitive pressure, rapid technological developments, and disintermediation from the payments value stream;

 

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system developments, such as:

 

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

 

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

 

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

 

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

 

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loss of organizational effectiveness or key employees;

 

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failure to integrate recent acquisitions successfully or to effectively launch new products and businesses;

 

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changes in accounting principles or treatments; and

the other factors discussed under the heading “Risk Factors” in our most recent Annual Report on Form 10-K on file with the U.S. Securities and Exchange Commission. 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

 

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VISA INC.

CONSOLIDATED STATEMENTS OF OPERATIONS

(UNAUDITED)

 

		Three Months Ended March 31,								Six Months Ended March 31,
		2012				2011				2012				2011
		(in millions, except per share data)
Operating Revenues
Service revenues		$	1,241			$	1,093			$	2,392			$	2,101
Data processing revenues			922				823				1,873				1,667
International transaction revenues			733				624				1,481				1,254
Other revenues			179				156				357				317
Client incentives			(497	)			(451	)			(978	)			(856	)
Total operating revenues			2,578				2,245				5,125				4,483
Operating Expenses
Personnel			431				351				820				708
Network and processing			103				80				201				160
Marketing			170				183				360				380
Professional fees			82				77				152				138
Depreciation and amortization			80				70				160				137
General and administrative			106				95				208				205
Litigation provision			—				6				—				6
Total operating expenses			972				862				1,901				1,734
Operating income			1,606				1,383				3,224				2,749
Other Income (Expense)
Interest expense			(7	)			(12	)			(17	)			(8	)
Investment income, net			9				9				19				19
Other			1				(3	)			—				(1	)
Total other income (expense)			3				(6	)			2				10
Income before income taxes			1,609				1,377				3,226				2,759
Income tax provision			317				497				907				995
Net income including non-controlling interest			1,292				880				2,319				1,764
Loss attributable to non-controlling interest			—				1				2				1
Net income attributable to Visa Inc.		$	1,292			$	881			$	2,321			$	1,765
Basic earnings per share
Class A common stock		$	1.92			$	1.24			$	3.41			$	2.47
Class B common stock		$	0.82			$	0.63			$	1.56			$	1.26
Class C common stock		$	1.92			$	1.24			$	3.41			$	2.47
Basic weighted-average shares outstanding
Class A common stock			524				505				522				499
Class B common stock			245				245				245				245
Class C common stock			42				80				44				87
Diluted earnings per share
Class A common stock		$	1.91			$	1.23			$	3.40			$	2.46
Class B common stock		$	0.81			$	0.63			$	1.55			$	1.26
Class C common stock		$	1.91			$	1.23			$	3.40			$	2.46
Diluted weighted-average shares outstanding
Class A common stock			676				714				683				717
Class B common stock			245				245				245				245
Class C common stock			42				80				44				87

 

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VISA INC.

CONSOLIDATED BALANCE SHEETS

(UNAUDITED)

 

		March 31, 2012				September 30, 2011
		(in millions, except par value data)
Assets
Cash and cash equivalents		$	2,042			$	2,127
Restricted cash - litigation escrow			4,282				2,857
Investment securities
Trading			66				57
Available-for-sale			849				1,214
Settlement receivable			508				412
Accounts receivable			655				560
Customer collateral			898				931
Current portion of client incentives			233				278
Deferred tax assets			430				489
Prepaid expenses and other current assets			332				265
Total current assets			10,295				9,190
Investment securities, available-for-sale			1,696				711
Client incentives			98				85
Property, equipment and technology, net			1,540				1,541
Other assets			112				129
Intangible assets, net			11,437				11,436
Goodwill			11,668				11,668
Total assets		$	36,846			$	34,760
Liabilities
Accounts payable		$	75			$	169
Settlement payable			702				449
Customer collateral			898				931
Accrued compensation and benefits			332				387
Client incentives			750				528
Accrued liabilities			544				562
Accrued litigation			286				425
Total current liabilities			3,587				3,451
Deferred tax liabilities			3,941				4,205
Other liabilities			797				667
Total liabilities			8,325				8,323
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, 528 and 520 shares issued and outstanding at March 31, 2012, and September 30, 2011, respectively			—				—
Class B common stock, $0.0001 par value, 622 shares authorized, 245 shares issued and outstanding at March 31, 2012 and September 30, 2011			—				—
Class C common stock, $0.0001 par value, 1,097 shares authorized, 41 and 47 shares issued and outstanding at March 31, 2012, and September 30, 2011, respectively			—				—
Additional paid-in capital			20,009				19,907
Accumulated income			8,688				6,706
Accumulated other comprehensive income (loss), net
Investment securities, available-for-sale			5				—
Defined benefit pension and other postretirement plans			(194	)			(186	)
Derivative instruments classified as cash flow hedges			17				18
Foreign currency translation adjustments			(4	)			(8	)
Total accumulated other comprehensive loss, net			(176	)			(176	)
Total equity			28,521				26,437
Total liabilities and equity		$	36,846			$	34,760

 

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VISA INC.

CONSOLIDATED STATEMENTS OF CASH FLOWS

(UNAUDITED)

 

		Six Months Ended March 31,
		2012				2011
		(in millions)
Operating Activities
Net income including non-controlling interest		$	2,319			$	1,764
Adjustments to reconcile net income including non-controlling interest to net cash provided by operating activities:
Amortization of client incentives			978				856
Share-based compensation			76				90
Excess tax benefit for share-based compensation			(27	)			(8	)
Depreciation and amortization of intangible assets and property, equipment and technology			160				137
Deferred income taxes			(200	)			129
Other			(36	)			(11	)
Change in operating assets and liabilities:
Trading securities			(9	)			(6	)
Settlement receivable			(96	)			11
Accounts receivable			(95	)			(62	)
Client incentives			(724	)			(734	)
Other assets			(23	)			(188	)
Accounts payable			(94	)			(51	)
Settlement payable			253				(88	)
Accrued compensation and benefits			(55	)			(90	)
Accrued and other liabilities			96				(10	)
Accrued litigation			(140	)			(130	)
Net cash provided by operating activities			2,383				1,609
Investing Activities
Purchases of property, equipment and technology			(127	)			(147	)
Proceeds from disposal of property, equipment and technology			2				—
Purchases of intangible assets			(35	)			—
Investment securities, available-for-sale:
Purchases			(2,140	)			—
Proceeds from sales and maturities			1,530				10
Purchases of / contributions to other investments			(3	)			—
Proceeds / distributions from other investments			3				103
Acquisition, net of cash received of $18			—				(162	)
Net cash used in investing activities			(770	)			(196	)
Financing Activities
Repurchase of class A common stock			(75	)			(536	)
Dividends paid			(300	)			(215	)
Deposits into litigation escrow account—retrospective responsibility plan			(1,565	)			(1,200	)
Payment from litigation escrow account—retrospective responsibility plan			140				140
Cash proceeds from exercise of stock options			77				39
Excess tax benefit for share-based compensation			27				8
Principal payments on debt			—				(7	)
Principal payments on capital lease obligations			(6	)			(8	)
Net cash used in financing activities			(1,702	)			(1,779	)
Effect of exchange rate changes on cash and cash equivalents			4				11
Decrease in cash and cash equivalents			(85	)			(355	)
Cash and cash equivalents at beginning of year			2,127				3,867
Cash and cash equivalents at end of period		$	2,042			$	3,512
Supplemental Disclosure of Cash Flow Information
Income taxes paid, net of refunds		$	1,071			$	1,015
Amounts included in accounts payable and accrued and other liabilities related to purchases of intangible assets and property, equipment and technology		$	52			$	20
Interest payment on debt		$	—			$	2

 

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Adjusted Net Income and Earnings Per Share

US $ in millions, except per share data

During the three months ended March 31, 2012, the state of California approved certain changes to its state tax apportionment rules, effective retroactively to the beginning of fiscal 2012, which lowered our overall state tax rate. As a result, in our income tax provision for the three months ended March 31, 2012, we recorded a one-time, non-cash benefit of $208 million resulting from the remeasurement of our existing net deferred tax liabilities primarily associated with $11 billion of indefinite-lived intangible assets previously recorded to reflect our reorganization in 2007. This adjustment has no cash impact to us. Management therefore believes that the resulting net income recorded is not indicative of Visa’s financial performance in the current or future periods. Management believes the presentation of adjusted net income and adjusted diluted earnings per share provides a clearer understanding of our operating performance for the periods.

 

		Three Months Ended March 31, 2012(1)								Six Months Ended March 31, 2012(1)
		(in millions, except per share data)
		Net Income Attributable to Visa Inc.				Fully-diluted earnings  per share(1)				Net Income Attributable to Visa Inc.				Fully-diluted earnings  per share(1)
As reported		$	1,292			$	1.91			$	2,321			$	3.40
Impact of deferred tax adjustment			(208	)			(0.31	)			(208	)			(0.30	)
Adjusted		$	1,084			$	1.60			$	2,113			$	3.09
Weighted-average number of diluted shares (as reported)							676								683

 

(1)	Earnings per share figures calculated based on whole numbers, not rounded numbers.

 

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Adjusted Effective Tax Rate

As discussed on the previous page, during the three months ended March 31, 2012, we recorded a one-time, non-cash benefit resulting from the remeasurement of our existing net deferred tax liabilities. This adjustment has no cash impact to us. Management therefore believes that the resulting benefit recorded in our effective income tax rates is not indicative of our financial performance in the current or future periods. Management believes the presentation of our adjusted effective income tax rates provides a clearer understanding of our operating performance for these periods.

 

		Three Months Ended March 31, 2012(1)				Six Months Ended March 31, 2012(1)
Effective income tax rate (as reported)			19.7	%			28.1	%
Remeasurement of deferred tax liabilities			12.9	%			6.4	%
Adjusted effective income tax rate			32.6	%			34.6	%

 

(1)	Effective income tax rate calculated based on whole numbers, not rounded numbers.

 

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VISA INC.

FISCAL 2011 AND 2012 QUARTERLY RESULTS OF OPERATIONS

(UNAUDITED)

 

		Fiscal 2011 Quarter Ended																Fiscal 2012 Quarter Ended
		December 31, 2010				March 31, 2011				June 30, 2011				September 30, 2011				December 31, 2011				March 31, 2012
		(in millions)
Operating Revenues
Service revenues		$	1,008			$	1,093			$	1,055			$	1,105			$	1,151			$	1,241
Data processing revenues			844				823				886				925				951				922
International transaction revenues			630				624				662				758				748				733
Other revenues			161				156				167				171				178				179
Client incentives			(405	)			(451	)			(448	)			(576	)			(481	)			(497	)
Total operating revenues			2,238				2,245				2,322				2,383				2,547				2,578
Operating Expenses
Personnel			357				351				363				388				389				431
Network and processing			80				80				91				106				98				103
Marketing			197				183				251				239				190				170
Professional fees			61				77				84				115				70				82
Depreciation and amortization			67				70				74				77				80				80
General and administrative			110				95				114				95				102				106
Litigation provision			—				6				—				1				—				—
Total operating expenses			872				862				977				1,021				929				972
Operating income			1,366				1,383				1,345				1,362				1,618				1,606
Other Income (Expense)
Interest income (expense)			4				(12	)			(11	)			(13	)			(10	)			(7	)
Investment income, net			10				9				88				1				10				9
Other			2				(3	)			121				4				(1	)			1
Total other income (expense)			16				(6	)			198				(8	)			(1	)			3
Income before income taxes			1,382				1,377				1,543				1,354				1,617				1,609
Income tax provision			498				497				539				476				590				317
Net income including non-controlling interest			884				880				1,004				878				1,027				1,292
Loss attributable to non-controlling interest			—				1				1				2				2				—
Net income attributable to Visa Inc.		$	884			$	881			$	1,005			$	880			$	1,029			$	1,292

 

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Operational Performance Data

The tables below provide information regarding the available operational results for the 3 months ended March 31, 2012, as well as the prior four quarterly reporting periods and the 12 months ended March 31, 2012 and 2011, 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 March 31, 2012
		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		$	400				13.7	%			12.0	%		$	267				15.7	%			13.0	%			2,849			$	133				9.9	%			10.0	%			617
Canada			56				7.1	%			9.0	%			51				7.1	%			9.0	%			460				5				7.2	%			9.1	%			10
CEMEA			214				20.7	%			25.8	%			41				35.8	%			42.4	%			651				173				17.5	%			22.4	%			1,013
LAC			252				13.8	%			19.5	%			91				18.6	%			24.6	%			2,038				161				11.2	%			16.8	%			954
US			614				6.6	%			6.6	%			507				6.2	%			6.2	%			10,067				107				8.4	%			8.4	%			856
Visa Inc.			1,536				11.4	%			12.5	%			956				10.9	%			11.0	%			16,065				580				12.1	%			15.0	%			3,450
Visa Credit Programs
US		$	233				11.6	%			11.6	%		$	223				11.9	%			11.9	%			2,592			$	10				5.1	%			5.1	%			15
Rest of World			412				13.2	%			13.1	%			365				15.0	%			14.5	%			4,237				47				1.0	%			2.6	%			182
Visa Inc.			645				12.6	%			12.5	%			588				13.8	%			13.5	%			6,829				57				1.7	%			3.1	%			197
Visa Debit Programs
US		$	381				3.8	%			3.8	%		$	284				2.2	%			2.2	%			7,475			$	97				8.8	%			8.8	%			841
Rest of World			510				16.1	%			20.0	%			85				25.1	%			28.6	%			1,761				426				14.5	%			18.4	%			2,412
Visa Inc.			891				10.5	%			12.5	%			368				6.6	%			7.2	%			9,236				523				13.4	%			16.5	%			3,253

 

		For the 3 Months Ended December 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		$	409				13.2	%			11.4	%		$	276				15.1	%			12.0	%			2,947			$	133				9.5	%			10.3	%			621				519				613
Canada			60				4.1	%			5.6	%			56				4.7	%			6.2	%			500				5				-2.2	%			-0.8	%			10				27				36
CEMEA			221				20.1	%			25.0	%			39				29.1	%			36.6	%			643				182				18.3	%			22.8	%			1,066				241				243
LAC			263				13.0	%			19.1	%			93				14.7	%			20.7	%			2,068				169				12.1	%			18.3	%			998				383				414
US			636				7.5	%			7.5	%			529				7.3	%			7.3	%			10,614				107				8.0	%			8.0	%			880				552				704
Visa Inc.			1,589				11.3	%			12.4	%			993				10.7	%			10.6	%			16,773				596				12.4	%			15.6	%			3,575				1,722				2,011
Visa Credit Programs
US		$	248				9.7	%			9.7	%		$	237				9.7	%			9.7	%			2,808			$	11				10.4	%			10.4	%			16				203				263
Rest of World			430				12.8	%			12.2	%			379				13.5	%			12.7	%			4,365				51				7.7	%			9.1	%			189				456				516
Visa Inc.			678				11.6	%			11.3	%			616				12.0	%			11.5	%			7,173				63				8.1	%			9.3	%			205				659				779
Visa Debit Programs
US		$	388				6.1	%			6.1	%		$	292				5.5	%			5.5	%			7,806			$	95				7.8	%			7.8	%			864				349				441
Rest of World			523				15.1	%			19.3	%			85				20.3	%			24.4	%			1,793				438				14.1	%			18.4	%			2,506				714				791
Visa Inc.			910				11.1	%			13.3	%			378				8.5	%			9.3	%			9,599				533				12.9	%			16.3	%			3,369				1,063				1,232

 

11

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Operational Performance Data

 

 

		For the 3 Months Ended September 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)				Accounts (millions)				Cards (millions)
All Visa Credit & Debit
Asia Pacific		$	402				23.1	%			13.9	%		$	272				28.2	%			17.4	%			2,888			$	130				13.6	%			7.1	%			626				509				602
Canada			61				14.6	%			7.6	%			56				14.7	%			7.7	%			489				5				13.5	%			6.6	%			10				26				35
CEMEA			212				29.7	%			27.2	%			37				38.8	%			36.1	%			569				175				28.0	%			25.5	%			998				241				239
LAC			249				22.4	%			16.7	%			89				30.0	%			23.8	%			1,905				160				18.5	%			13.1	%			929				372				403
US			626				9.1	%			9.1	%			517				9.1	%			9.1	%			10,486				109				9.0	%			9.0	%			906				509				655
Visa Inc.			1,550				17.4	%			13.7	%			971				17.0	%			13.4	%			16,337				579				18.0	%			14.2	%			3,469				1,657				1,933
Visa Credit Programs
US		$	241				11.1	%			11.1	%		$	229				10.3	%			10.3	%			2,664			$	13				26.5	%			26.5	%			18				201				261
Rest of World			421				24.4	%			15.6	%			369				25.0	%			15.9	%			4,219				51				20.0	%			13.4	%			182				453				513
Visa Inc.			662				19.2	%			13.9	%			598				19.0	%			13.7	%			6,883				64				21.2	%			15.8	%			200				654				774
Visa Debit Programs
US		$	385				7.9	%			7.9	%		$	288				8.2	%			8.2	%			7,822			$	97				7.0	%			7.0	%			888				308				394
Rest of World			504				23.2	%			18.2	%			85				39.6	%			32.2	%			1,632				419				20.4	%			15.7	%			2,381				695				766
Visa Inc.			888				16.1	%			13.5	%			373				14.0	%			12.8	%			9,454				515				17.6	%			14.0	%			3,270				1,003				1,160

 

		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)				Accounts (millions)				Cards (millions)
All Visa Credit & Debit
Asia Pacific		$	379				22.7	%			13.2	%		$	248				25.5	%			14.8	%			2,758			$	131				17.6	%			10.4	%			599				495				588
Canada			60				13.6	%			7.7	%			55				14.0	%			8.0	%			473				5				9.9	%			4.2	%			10				25				34
CEMEA			204				32.3	%			27.0	%			35				41.6	%			35.5	%			532				170				30.5	%			25.4	%			992				230				232
LAC			244				31.8	%			22.9	%			85				37.1	%			27.7	%			1,817				159				29.1	%			20.5	%			912				365				398
US			624				10.0	%			10.0	%			518				10.4	%			10.4	%			10,417				106				8.2	%			8.2	%			902				499				654
Visa Inc.			1,512				19.1	%			14.7	%			941				17.4	%			13.5	%			15,996				570				22.2	%			16.8	%			3,415				1,615				1,906
Visa Credit Programs
US		$	235				9.5	%			9.5	%		$	224				9.9	%			9.9	%			2,570			$	11				2.2	%			2.2	%			17				199				258
Rest of World			400				25.0	%			15.7	%			348				25.3	%			15.8	%			4,042				52				22.6	%			15.3	%			179				448				509
Visa Inc.			634				18.8	%			13.3	%			572				18.8	%			13.4	%			6,612				62				18.6	%			12.8	%			196				647				766
Visa Debit Programs
US		$	389				10.3	%			10.3	%		$	294				10.8	%			10.8	%			7,847			$	95				8.9	%			8.9	%			885				301				397
Rest of World			488				27.8	%			20.5	%			75				36.6	%			27.3	%			1,538				413				26.3	%			19.4	%			2,334				667				744
Visa Inc.			877				19.4	%			15.8	%			369				15.2	%			13.8	%			9,385				508				22.6	%			17.3	%			3,219				968				1,140

 

		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	%			11.9	%			2,629			$	121				19.0	%			13.6	%			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	%			24.8	%			30				33.8	%			31.2	%			483				147				25.1	%			23.5	%			906				226				225
LAC			222				26.8	%			20.4	%			77				32.5	%			25.8	%			1,740				145				23.9	%			17.7	%			860				360				389
US			576				11.1	%			11.1	%			477				11.6	%			11.6	%			9,586				99				8.9	%			8.9	%			839				504				651
Visa Inc.			1,379				17.2	%			14.2	%			862				15.7	%			13.0	%			14,858				517				19.9	%			16.4	%			3,193				1,592				1,871
Visa Credit Programs
US		$	209				7.6	%			7.6	%		$	199				9.1	%			9.1	%			2,283			$	10				-16.4	%			-16.4	%			15				198				256
Rest of World			364				19.2	%			13.1	%			318				19.1	%			12.8	%			3,825				46				19.9	%			14.9	%			163				444				504
Visa Inc.			573				14.7	%			11.0	%			517				15.1	%			11.4	%			6,108				56				11.5	%			7.8	%			177				641				760
Visa Debit Programs
US		$	367				13.2	%			13.2	%		$	278				13.5	%			13.5	%			7,303			$	89				12.6	%			12.6	%			824				307				395
Rest of World			439				24.4	%			19.8	%			68				31.8	%			25.8	%			1,448				372				23.2	%			18.8	%			2,192				644				715
Visa Inc.			806				19.1	%			16.7	%			345				16.6	%			15.6	%			8,751				461				21.0	%			17.5	%			3,016				951				1,111

 

12

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Operational Performance Data

 

 

 

		For the 12 Months Ended March 31, 2012
		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		$	1,590				17.9	%			12.6	%		$	1,063				20.8	%			14.3	%			11,442			$	527				12.5	%			9.4	%			2,463
Canada			237				9.7	%			7.4	%			217				10.0	%			7.7	%			1,921				20				7.0	%			4.8	%			41
CEMEA			852				25.3	%			26.2	%			152				36.0	%			37.7	%			2,395				700				23.2	%			24.0	%			4,070
LAC			1,008				19.6	%			19.5	%			359				24.2	%			24.1	%			7,829				649				17.2	%			17.1	%			3,793
US			2,499				8.3	%			8.3	%			2,071				8.2	%			8.2	%			41,585				429				8.4	%			8.4	%			3,543
Visa Inc.			6,187				14.7	%			13.3	%			3,862				13.9	%			12.1	%			65,171				2,325				16.0	%			15.4	%			13,909
Visa Credit Programs
US		$	957				10.5	%			10.5	%		$	912				10.4	%			10.4	%			10,635			$	45				11.0	%			11.0	%			65
Rest of World			1,663				18.5	%			14.1	%			1,461				19.4	%			14.7	%			16,862				201				12.4	%			10.1	%			733
Visa Inc.			2,620				15.4	%			12.7	%			2,374				15.8	%			13.0	%			27,497				246				12.2	%			10.2	%			798
Visa Debit Programs
US		$	1,542				7.0	%			7.0	%		$	1,159				6.6	%			6.6	%			30,950			$	384				8.1	%			8.1	%			3,478
Rest of World			2,025				20.2	%			19.5	%			330				29.7	%			28.1	%			6,724				1,695				18.5	%			18.0	%			9,633
Visa Inc.			3,567				14.1	%			13.7	%			1,488				11.0	%			10.7	%			37,674				2,079				16.5	%			16.0	%			13,111

 

		For the 12 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		$	1,349				16.8	%			11.1	%		$	881				19.1	%			12.9	%			10,657			$	468				12.7	%			7.7	%			2,345				476				573
Canada			216				13.0	%			7.5	%			197				12.6	%			7.2	%			1,771				19				16.7	%			10.6	%			37				25				33
CEMEA			679				25.3	%			25.0	%			112				31.1	%			29.8	%			1,773				568				24.2	%			24.1	%			3,574				226				225
LAC			843				23.4	%			19.0	%			289				27.1	%			24.2	%			6,714				554				21.5	%			16.5	%			3,495				360				389
US			2,308				11.8	%			11.8	%			1,913				12.8	%			12.8	%			38,860				395				6.9	%			6.9	%			3,423				504				651
Visa Inc.			5,396				16.4	%			14.0	%			3,392				16.1	%			13.9	%			59,776				2,004				16.9	%			14.1	%			12,874				1,592				1,871
Visa Credit Programs
US		$	867				4.6	%			4.6	%		$	826				7.3	%			7.3	%			9,596			$	41				-30.7	%			-30.7	%			65				198				256
Rest of World			1,403				18.2	%			12.8	%			1,224				18.0	%			12.6	%			15,347				179				19.3	%			14.2	%			641				444				504
Visa Inc.			2,270				12.6	%			9.6	%			2,050				13.4	%			10.5	%			24,943				220				5.3	%			2.2	%			706				641				760
Visa Debit Programs
US		$	1,442				16.6	%			16.6	%		$	1,087				17.5	%			17.5	%			29,264			$	355				14.0	%			14.0	%			3,358				307				395
Rest of World			1,684				21.6	%			18.1	%			254				34.1	%			29.6	%			5,569				1,430				19.7	%			16.3	%			8,810				644				715
Visa Inc.			3,126				19.3	%			17.4	%			1,341				20.3	%			19.6	%			34,833				1,785				18.5	%			15.8	%			12,168				951				1,111

 

13

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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.

 

14

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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
Mar 31, 2012			15	%			16	%
Dec 31, 2011			12	%			13	%
Sep 30, 2011			19	%			15	%
Jun 30, 2011			20	%			14	%
Mar 31, 2011			16	%			13	%
12 Months Ended
Mar 31, 2012			16	%			15	%
Mar 31, 2011			17	%			15	%

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
Mar 31, 2012			13,038				8	%
Dec 31, 2011			13,600				8	%
Sep 30, 2011			13,263				9	%
Jun 30, 2011			13,038				11	%
Mar 31, 2011			12,040				13	%
12 Months Ended
Mar 31, 2012			52,939				9	%
Mar 31, 2011			48,460				15	%

 

15

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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
Mar 31, 2012			1,281				26	%
Dec 31, 2011			1,235				25	%
Sep 30, 2011			1,088				31	%
Jun 30, 2011			1,045				38	%
Mar 31, 2011			1,018				38	%
12 Months Ended
Mar 31, 2012			4,649				29	%
Mar 31, 2011			3,592				36	%

 

16