Form 8-K VISA INC. For: Jan 28

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

 

 

FORM 8-K

 

 

CURRENT REPORT

Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

Date of Report (Date of earliest event reported): January 28, 2016

 

 

VISA INC.

(Exact name of Registrant as Specified in Its Charter)

 

 

 

Delaware		001-33977		26-0267673
(State or Other Jurisdiction of Incorporation)		(Commission File Number)		(IRS Employer Identification No.)

 

P.O. Box 8999 San Francisco, California		94128-8999
(Address of Principal Executive Offices)		(Zip Code)

Registrant’s Telephone Number, Including Area Code: (650) 432-3200

N/A

(Former Name or Former Address, if Changed Since Last Report)

 

 

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instructions A.2. below):

 

¨	Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

 

¨	Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

 

¨	Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

 

¨	Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

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Item 2.02

Results of Operations and Financial Condition.

On January 28, 2016, Visa Inc. (the “Company”) issued a press release announcing financial results for the Company’s fiscal first quarter, ended December 31, 2015.

A copy of the press release is attached hereto as Exhibit 99.1. All information in the press release is furnished but not filed.

On January 28, 2016, the Company will host a conference call to discuss financial results for its fiscal first quarter ended December 31, 2015.

A copy of the presentation to be used during the conference call is attached hereto as Exhibit 99.2. All information in the presentation is furnished but not filed.

 

Item 9.01

Financial Statements and Exhibits.

 

(d)

Exhibits

 

99.1		Press Release of Visa Inc., dated January 28, 2016
99.2		Presentation of Visa Inc., dated January 28, 2016

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SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

 

				VISA INC.
Date: January 28, 2016				By:		/s/ Vasant M. Prabhu
						Vasant M. Prabhu Chief Financial Officer

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EXHIBIT INDEX

 

Exhibit Number		Description
99.1		Press Release of Visa Inc., dated January 28, 2016
99.2		Presentation of Visa Inc., dated January 28, 2016

Exhibit 99.1

 

 

 

Visa Inc. Reports Fiscal First Quarter 2016 Results

 

 

 

•

GAAP quarterly net income of $1.9 billion or $0.80 per share including non-cash, non-operating income related to the revaluation of the Visa Europe put option

 

•

Adjusted quarterly net income of $1.7 billion or $0.69 per share excluding the revaluation of the Visa Europe put option

San Francisco, CA, January 28, 2016 – Visa Inc. (NYSE: V) today announced financial results for the Company’s fiscal first quarter 2016. GAAP net income for the quarter, inclusive of non-cash, non-operating income related to an adjustment in the Company’s fair value of its Visa Europe put option, was $1.9 billion, or $0.80 per share. All references to earnings per share assume fully-diluted class A share count unless otherwise noted.

Excluding the $255 million non-cash, non-operating income recorded upon remeasurement of the Visa Europe put option, adjusted net income for the quarter was $1.7 billion, an increase of 7% over the prior year, or $0.69 per share, an increase of 10% over the prior year. The change in the fair value of the Visa Europe put option was triggered by the amendment of the put option in connection with the Visa Europe Transaction Agreement. The Company’s adjusted quarterly net income, effective income tax rate and earnings per share are non-GAAP financial measures that are reconciled to their most directly comparable GAAP measure in the accompanying financial tables.

Net operating revenue in the fiscal first quarter of 2016 was $3.6 billion, an increase of 5% nominally or 8% on a constant dollar basis over the prior year, driven by growth in service revenues, data processing revenues and international transaction revenues. Currency rate shifts versus the prior year negatively impacted reported net operating revenue growth by approximately 3 percentage points.

“We continue to be pleased with our financial performance given the uneven global economy and the ongoing negative effects of the strong U.S. dollar. While we continue to see relatively strong payments volume growth, these factors have meaningfully reduced our cross-border volume and revenue growth. While these headwinds do not appear to be abating in the short-term as we had hoped, the fundamentals of our business remain strong and our long-term growth trajectory remains intact as we navigate through this uncertain environment,” said Charlie Scharf, Chief Executive Officer of Visa Inc.

 

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Fiscal First Quarter 2016 Financial Highlights:

Payments volume growth, on a constant dollar basis, for the three months ended September 30, 2015, on which fiscal first quarter service revenue is recognized, was 12% over the prior year at $1.3 trillion.

Payments volume growth, on a constant dollar basis, for the three months ended December 31, 2015, was 11% over the prior year at $1.3 trillion.

Cross-border volume growth, on a constant dollar basis, was 4% for the three months ended December 31, 2015.

Total processed transactions, which represent transactions processed by VisaNet, for the three months ended December 31, 2015, were 19.0 billion, an 8% increase over the prior year.

Fiscal first quarter 2016 service revenues were $1.6 billion, an increase of 7% over 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 7% over the prior year to $1.5 billion. International transaction revenues grew 6% over the prior year to $1.0 billion. Other revenues were $198 million, a decrease of 3% over the prior year. Client incentives, which are a contra revenue item, were $788 million and represent 18.1% of gross revenues.

Total operating expenses were $1.2 billion for the quarter, a 2% increase over the prior year, as the Company took the necessary steps to prioritize cost controls given an increasingly challenging macro-economic environment.

The Company recognized interest expense of $24 million for the quarter ended December 31, 2015 as a result of the issuance of approximately $16.0 billion of fixed-rate senior notes.

 

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For the quarter ended December 31, 2015, the GAAP effective tax rate was 26.4% and the adjusted effective tax rate was 29.3%.

Cash, cash equivalents, and available-for-sale investment securities were $24.8 billion at December 31, 2015.

The weighted-average number of diluted shares of class A common stock outstanding was 2.4 billion for the quarter ended December 31, 2015.

Notable Events:

On December 14, 2015, the Company issued fixed-rate senior notes in an aggregate principal amount of $16.0 billion with maturities ranging between 2 and 30 years, and interest rates from 1.20% to 4.30%. The weighted average interest rate is 3.08% and the weighted average maturity of the notes is 13 years. Among other things, the proceeds will be used to fund the up-front cash consideration of the purchase price for the planned acquisition of Visa Europe Limited.

During the three months ended December 31, 2015, the Company repurchased 25.7 million shares of class A common stock, at an average price of $78.52 per share, using $2.0 billion of cash on hand. The Company has $5.8 billion of remaining funds, authorized by the board of directors, available for share repurchase under the current programs as of December 31, 2015.

Financial Outlook for Fiscal Full-Year 2016:

While the Company is not changing its financial outlook for the fiscal full-year, continued moderating cross-border volume growth and subdued domestic activity across our geographies could ultimately affect our results. Current guidance is outlined below:

 

•

Annual net revenue growth: High single-digit to low double-digit range on a constant dollar basis, with an expectation of about three percentage points of negative foreign currency impact;

 

•

Client incentives as a percent of gross revenues: 17.5% to 18.5% range;

 

•

Annual operating margin: Mid 60s;

 

•

Adjusted effective tax rate: Low 30s;

 

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•

Annual adjusted diluted class A common stock earnings per share growth: Low-end of the mid-teens range on a constant dollar basis, with an expectation of about four percentage points of negative foreign currency impact; and

 

•

Annual free cash flow: About $7 billion.

Note: The financial outlook for fiscal full-year 2016 does not include any impact from the Visa Europe transaction, including interest expense from the $16.0 billion issuance of fixed-rate senior notes of about $125 million per quarter.

Fiscal First Quarter 2016 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 Inc. (NYSE: V) 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 electronic payments. We operate one of the world’s most advanced processing networks —VisaNet — that is capable of handling more than 65,000 transaction messages a second, with fraud protection for consumers and assured 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, pay ahead of time with prepaid or pay later with credit products. For more information, visit usa.visa.com/about-visa, visacorporate.tumblr.com and @VisaNews.

Forward-Looking Statements:

This Press Release contains forward-looking statements within the meaning of the U.S. Private Securities Litigation Reform Act of 1995. Forward-looking statements generally are identified by words such as “estimates,” “expectation,” “outlook”, “may,” “projects,” “could,” “should,” “will,” “will continue” and other similar expressions. Examples of forward-looking statements include, but are not limited to, statements we make about our revenue, client incentives, operating margin, tax rate, earnings per share, 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 not statements of historical fact or guarantees of future performance; and (iii) are subject to risks, uncertainties, assumptions or changes in circumstances that are difficult to predict or quantify.

 

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Therefore, actual results could differ materially and adversely from our forward-looking statements due to a variety of factors, including the following:

 

•

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

 

•

increased regulation of fees, transaction routing, payment card practices or other aspects of the payments industry in the United States, including new or revised regulations issued under the Dodd-Frank Wall Street Reform and Consumer Protection Act;

 

•

increased regulation in jurisdictions outside of the United States;

 

•

increased government support of national payment networks outside the United States; and

 

•

increased regulation of consumer privacy, data use and security;

 

•

developments in litigation and government enforcement, including those affecting interchange reimbursement fees, antitrust and tax;

 

•

new lawsuits, investigations or proceedings, or changes to our potential exposure in connection with pending lawsuits, investigations or proceedings;

 

•

economic factors, such as:

 

•

economic fragility in the Eurozone, the United States and in other advanced and emerging markets;

 

•

general economic, political and social conditions in mature and emerging markets globally;

 

•

general stock market fluctuations which may impact consumer spending;

 

•

material changes in cross-border activity, foreign exchange controls and fluctuations in currency exchange rates; and

 

•

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

 

•

industry developments, such as competitive pressure, rapid technological developments and disintermediation from our payments network;

 

•

system developments, such as:

 

•

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

 

•

account data breaches or increased fraudulent or other illegal activities involving Visa-branded cards or payment products; and

 

•

failure to maintain systems interoperability with Visa Europe;

 

•

the transaction with Visa Europe may not be consummated on the terms currently contemplated or at all;

 

•

Visa Europe’s business may not be successfully integrated with our business or we may not achieve the anticipated benefits of the transaction;

 

•

the costs and risks associated with the transaction with Visa Europe;

 

•

matters arising in connection with Visa Europe’s or our efforts to comply with and satisfy applicable regulatory approvals and closing conditions relating to the transaction;

 

•

the loss of organizational effectiveness or key employees;

 

•

the failure to integrate acquisitions successfully or to effectively develop new products and businesses;

 

•

natural disasters, terrorist attacks, military or political conflicts, and public health emergencies; and

 

•

various other factors, including those more fully described in our filings with the U.S. Securities and Exchange Commission, including our Annual Report on Form 10-K for the year ended September 30, 2015, and our subsequent reports on Forms 10-Q and 8-K.

 

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You should not place undue reliance on such statements. Except as required by law, we do not intend to update or revise any forward–looking statements as a result of new information, future developments or otherwise.

Contacts:

Investor Relations: Jack Carsky or Victoria Hyde-Dunn, 650-432-7644, [email protected]

Media Relations: Connie Kim, 212-521-3962, [email protected]

 

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VISA INC.

CONSOLIDATED BALANCE SHEETS

(UNAUDITED)

 

		December 31, 2015				September 30, 2015
		(in millions, except par value data)
Assets
Cash and cash equivalents		$	12,837			$	3,518
Restricted cash—litigation escrow			1,061				1,072
Investment securities:
Trading			80				66
Available-for-sale			8,428				2,431
Settlement receivable			443				408
Accounts receivable			922				847
Customer collateral			1,041				1,023
Current portion of client incentives			414				303
Prepaid expenses and other current assets			247				353
Total current assets			25,473				10,021
Investment securities, available-for-sale			3,487				3,384
Client incentives			128				110
Property, equipment and technology, net			1,884				1,888
Other assets			832				778
Intangible assets, net			11,348				11,361
Goodwill			11,825				11,825
Total assets		$	54,977			$	39,367
Liabilities
Accounts payable		$	118			$	127
Settlement payable			744				780
Customer collateral			1,041				1,023
Accrued compensation and benefits			317				503
Client incentives			1,116				1,049
Accrued liabilities			1,009				849
Accrued litigation			1,012				1,024
Total current liabilities			5,357				5,355
Long-term debt			15,877				—
Deferred tax liabilities			3,344				3,273
Other liabilities			923				897
Total liabilities			25,501				9,525
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, 1,926 and 1,950 shares issued and outstanding at December 31, 2015 and September 30, 2015, respectively			—				—
Class B common stock, $0.0001 par value, 622 shares authorized, 245 shares issued and outstanding at December 31, 2015 and September 30, 2015			—				—
Class C common stock, $0.0001 par value, 1,097 shares authorized, 19 and 20 shares issued and outstanding at December 31, 2015 and September 30, 2015, respectively			—				—
Additional paid-in capital			17,824				18,073
Accumulated income			11,701				11,843
Accumulated other comprehensive loss, net:
Investment securities, available-for-sale			23				5
Defined benefit pension and other postretirement plans			(131	)			(161	)
Derivative instruments classified as cash flow hedges			60				83
Foreign currency translation adjustments			(1	)			(1	)
Total accumulated other comprehensive loss, net			(49	)			(74	)
Total equity			29,476				29,842
Total liabilities and equity		$	54,977			$	39,367

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VISA INC.

CONSOLIDATED STATEMENTS OF OPERATIONS

(UNAUDITED)

 

		Three Months Ended December 31,
		2015				2014
		(in millions, except per share data)
Operating Revenues
Service revenues		$	1,645			$	1,538
Data processing revenues			1,479				1,383
International transaction revenues			1,031				970
Other revenues			198				204
Client incentives			(788	)			(713	)
Total operating revenues			3,565				3,382
Operating Expenses
Personnel			499				509
Marketing			194				205
Network and processing			128				114
Professional fees			72				70
Depreciation and amortization			120				120
General and administrative			156				126
Total operating expenses			1,169				1,144
Operating income			2,396				2,238
Non-operating Income
Interest expense			(29	)			(3	)
Other			272				27
Total non-operating income			243				24
Income before income taxes			2,639				2,262
Income tax provision			698				693
Net income		$	1,941			$	1,569
Basic earnings per share
Class A common stock		$	0.80			$	0.63
Class B common stock		$	1.32			$	1.05
Class C common stock		$	3.20			$	2.54
Basic weighted-average shares outstanding
Class A common stock			1,937				1,974
Class B common stock			245				245
Class C common stock			20				22
Diluted earnings per share
Class A common stock		$	0.80			$	0.63
Class B common stock		$	1.32			$	1.04
Class C common stock		$	3.20			$	2.53
Diluted weighted-average shares outstanding
Class A common stock			2,430				2,478
Class B common stock			245				245
Class C common stock			20				22

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VISA INC.

CONSOLIDATED STATEMENTS OF CASH FLOWS

(UNAUDITED)

 

		Three Months Ended December 31,
		2015				2014
		(in millions)
Operating Activities
Net income		$	1,941			$	1,569
Adjustments to reconcile net income to net cash provided by operating activities:
Amortization of client incentives			788				713
Fair value adjustment for the Visa Europe put option			(255	)			—
Share-based compensation			39				45
Excess tax benefit for share-based compensation			(36	)			(58	)
Depreciation and amortization of property, equipment, technology and intangible assets			120				120
Deferred income taxes			45				97
Other			5				(19	)
Change in operating assets and liabilities:
Settlement receivable			(35	)			286
Accounts receivable			(75	)			(78	)
Client incentives			(850	)			(687	)
Other assets			23				(141	)
Accounts payable			—				10
Settlement payable			(36	)			(477	)
Accrued and other liabilities			317				484
Accrued litigation			(12	)			(103	)
Net cash provided by operating activities			1,979				1,761
Investing Activities
Purchases of property, equipment, technology and intangible assets			(126	)			(104	)
Investment securities, available-for-sale:
Purchases			(6,803	)			(758	)
Proceeds from maturities and sales			739				226
Purchases of / contributions to other investments			(8	)			—
Proceeds / distributions from other investments			4				—
Net cash used in investing activities			(6,194	)			(636	)
Financing Activities
Repurchase of class A common stock			(2,015	)			(803	)
Dividends paid			(340	)			(297	)
Proceeds from issuance of senior notes			15,971				—
Debt issuance costs			(77	)			—
Payments from litigation escrow account—U.S. retrospective responsibility plan			11				100
Cash proceeds from issuance of common stock under employee equity plans			29				30
Restricted stock and performance-based shares settled in cash for taxes			(81	)			(100	)
Excess tax benefit for share-based compensation			36				58
Net cash provided by (used in) financing activities			13,534				(1,012	)
Effect of exchange rate changes on cash and cash equivalents			—				1
Increase in cash and cash equivalents			9,319				114
Cash and cash equivalents at beginning of year			3,518				1,971
Cash and cash equivalents at end of period		$	12,837			$	2,085
Supplemental Disclosure
Income taxes paid, net of refunds		$	79			$	57
Accruals related to purchases of property, equipment, technology and intangible assets		$	40			$	21

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VISA INC.

FISCAL 2016 AND 2015 QUARTERLY RESULTS OF OPERATIONS

(UNAUDITED)

 

		Fiscal 2016 Quarter Ended				Fiscal 2015 Quarter Ended
		December 31, 2015				September 30, 2015				June 30,     2015				March 31,     2015				December 31, 2014
		(in millions)
Operating Revenues
Service revenues		$	1,645			$	1,637			$	1,550			$	1,577			$	1,538
Data processing revenues			1,479				1,429				1,400				1,340				1,383
International transaction revenues			1,031				1,091				1,039				964				970
Other revenues			198				216				199				204				204
Client incentives			(788	)			(802	)			(670	)			(676	)			(713	)
Total operating revenues			3,565				3,571				3,518				3,409				3,382
Operating Expenses
Personnel			499				521				566				483				509
Marketing			194				253				224				190				205
Network and processing			128				134				117				109				114
Professional fees			72				107				82				77				70
Depreciation and amortization			120				119				130				125				120
General and administrative			156				143				137				141				126
Litigation provision			—				11				—				3				—
Total operating expenses			1,169				1,288				1,256				1,128				1,144
Operating income			2,396				2,283				2,262				2,281				2,238
Non-operating Income (Expense)
Interest expense			(29	)			—				8				(7	)			(3	)
Other			272				—				(102	)			8				27
Total non-operating income (expense)			243				—				(94	)			1				24
Income before income taxes			2,639				2,283				2,168				2,282				2,262
Income tax provision			698				771				471				732				693
Net income		$	1,941			$	1,512			$	1,697			$	1,550			$	1,569

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VISA INC.

RECONCILIATION OF NON-GAAP FINANCIAL RESULTS

(UNAUDITED)

During the first quarter of fiscal 2016, we recorded a decrease of $255 million in the fair value of the Visa Europe put option, resulting in the recognition of non-cash, non-operating income that we do not believe is indicative of our operating performance. As such, we believe the presentation of adjusted financial results provides a clearer understanding of our operating performance for the current period presented. This amount is not subject to income tax and therefore has no impact on our reported income tax provision. There was no comparable adjustment recorded for the three months ended December 31, 2014. Adjusted net income, effective income tax rate and diluted earnings per share are non-GAAP financial measures and should not be relied upon as substitutes for measures calculated in accordance with U.S. GAAP. The following table reconciles our as-reported net income, effective income tax rate and diluted earnings per share, which are calculated in accordance with U.S. GAAP, to our respective non-GAAP adjusted financial measures for the three months ended December 31, 2015:

 

		Three Months Ended December 31, 2015
		Net Income				Effective Income Tax Rate(1)				Diluted Earnings per Share(1)
		(in millions, except percentages and per share data)
As reported		$	1,941				26%			$	0.80
Revaluation of Visa Europe put option			(255	)			3%				(0.10	)
As adjusted		$	1,686				29%			$	0.69
Diluted weighted-average shares outstanding, as reported											2,430

 

(1)	Figures in the table may not recalculate exactly due to rounding. Effective income tax rate and diluted earnings per share figures are calculated based on unrounded numbers.

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Operational Performance Data

The tables below provide information regarding the available operational results for the 3 months ended December 31, 2015, as well as the prior four quarterly reporting periods and the 12 months ended December 31, 2015 and 2014, for cards carrying the Visa, Visa Electron and Interlink brands.

1. Branded Volume and Transactions

The 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.

 

		For the 3 Months Ended December 31, 2015
		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		$	526				3.0%				10.9%			$	387				7.9%				15.7%				4,894			$	139				-8.5%				-0.5%			1,039
Canada			59				-10.8%				4.9%				55				-11.1%				4.6%				720				5				-6.8%				9.7%			11
CEMEA			227				-13.8%				4.8%				60				-7.0%				11.5%				2,097				167				-16.0%				2.7%			1,234
LAC			237				-17.1%				10.3%				89				-17.6%				14.2%				2,912				147				-16.7%				8.1%			1,173
US			841				8.9%				8.9%				713				9.5%				9.5%				14,033				128				5.5%				5.5%			934
Visa Inc.			1,890				-0.4%				9.0%				1,305				4.8%				11.5%				24,656				586				-10.4%				3.9%			4,392
Visa Credit Programs
US		$	372				9.2%				9.2%			$	358				9.2%				9.2%				4,393			$	14				7.9%				7.9%			17
International			504				-1.3%				12.1%				470				0.5%				13.5%				6,490				34				-20.3%				-3.9%			164
Visa Inc.			876				2.9%				10.8%				827				4.1%				11.6%				10,883				49				-13.7%				-0.7%			181
Visa Debit Programs
US		$	469				8.7%				8.7%			$	355				9.8%				9.8%				9,640			$	113				5.2%				5.2%			917
International			546				-11.4%				6.4%				122				-3.5%				15.6%				4,133				424				-13.5%				4.0%			3,293
Visa Inc.			1,014				-3.1%				7.5%				477				6.1%				11.3%				13,773				537				-10.1%				4.3%			4,210
		For the 3 Months Ended September 30, 2015
		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		$	510				0.8%				11.2%			$	372				5.7%				16.6%				4,674			$	138				-10.3%				-1.2%			1,029		738		835
Canada			58				-12.0%				5.2%				54				-12.1%				5.1%				698				5				-11.3%				6.0%			12		43		50
CEMEA			232				-17.1%				9.4%				61				-9.9%				17.1%				1,914				171				-19.4%				6.9%			1,195		333		321
LAC			227				-17.5%				11.2%				85				-18.1%				14.0%				2,702				142				-17.2%				9.6%			1,093		415		451
US			822				8.7%				8.7%				693				9.7%				9.7%				13,658				129				3.9%				3.9%			959		630		802
Visa Inc.			1,850				-1.8%				9.7%				1,265				4.0%				12.1%				23,647				585				-12.3%				4.8%			4,287		2,158		2,459
Visa Credit Programs
US		$	359				9.9%				9.9%			$	345				10.2%				10.2%				4,224			$	14				2.9%				2.9%			18		250		329
International			491				-2.7%				14.1%				456				-0.3%				15.6%				6,211				35				-25.3%				-2.3%			164		499		558
Visa Inc.			850				2.3%				12.3%				800				3.9%				13.2%				10,435				50				-18.9%				-0.8%			181		749		887
Visa Debit Programs
US		$	463				7.9%				7.9%			$	349				9.2%				9.2%				9,434			$	115				4.0%				4.0%			941		380		473
International			537				-13.8%				7.2%				116				-8.7%				13.1%				3,777				420				-15.1%				5.7%			3,164		1,029		1,099
Visa Inc.			1,000				-5.0%				7.5%				465				4.1%				10.1%				13,212				535				-11.7%				5.4%			4,105		1,410		1,572

---

Operational Performance Data

 

 

		For the 3 Months Ended June 30, 2015
		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		$	510				4.3%				10.9%			$	364				7.9%				15.3%				4,394			$	145				-3.8%				1.1%				1,003				725				822
Canada			62				-5.0%				6.0%				57				-5.3%				5.7%				679				5				-2.5%				8.9%				12				42				49
CEMEA			238				-13.8%				7.3%				61				-6.0%				15.3%				1,783				177				-16.3%				4.8%				1,195				332				321
LAC			237				-10.9%				11.6%				89				-12.4%				12.5%				2,595				148				-10.0%				11.1%				1,072				420				451
US			810				8.0%				8.0%				683				8.8%				8.8%				13,265				126				3.8%				3.8%				951				628				798
Visa Inc.			1,855				0.6%				9.1%				1,254				5.3%				11.0%				22,717				602				-8.0%				5.1%				4,232				2,145				2,441
Visa Credit Programs
US		$	352				11.3%				11.3%			$	339				11.7%				11.7%				4,072			$	13				3.5%				3.5%				16				246				323
International			490				0.6%				12.9%				453				3.0%				14.5%				5,915				37				-21.7%				-3.8%				160				496				554
Visa Inc.			843				4.8%				12.2%				792				6.5%				13.3%				9,988				51				-16.3%				-2.0%				176				742				876
Visa Debit Programs
US		$	457				5.6%				5.6%			$	344				6.1%				6.1%				9,192			$	113				3.8%				3.8%				935				382				476
International			555				-8.6%				7.4%				117				-4.7%				11.3%				3,537				438				-9.6%				6.4%				3,121				1,021				1,089
Visa Inc.			1,013				-2.7%				6.6%				462				3.2%				7.4%				12,729				551				-7.1%				5.9%				4,056				1,404				1,565
		For the 3 Months Ended March 31, 2015
		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		$	495				2.9%				8.6%			$	343				4.8%				11.6%				4,092			$	152				-1.2%				2.4%				986				711				809
Canada			54				-5.0%				7.1%				49				-5.3%				6.8%				602				5				-1.7%				10.9%				12				42				49
CEMEA			212				-16.0%				11.8%				54				-8.2%				19.9%				1,615				158				-18.4%				9.3%				1,121				329				323
LAC			243				-2.9%				13.4%				93				-1.4%				15.7%				2,529				149				-3.8%				12.1%				1,043				417				450
US			748				8.4%				8.4%				628				9.2%				9.2%				12,206				120				4.3%				4.3%				890				620				789
Visa Inc.			1,751				1.2%				9.5%				1,168				5.4%				10.8%				21,044				584				-6.2%				7.0%				4,052				2,120				2,420
Visa Credit Programs
US		$	316				12.3%				12.3%			$	303				12.3%				12.3%				3,623			$	13				12.1%				12.1%				15				241				318
International			463				0.0%				11.5%				428				2.7%				12.8%				5,533				35				-24.2%				-2.6%				153				489				546
Visa Inc.			779				4.6%				11.8%				731				6.4%				12.6%				9,156				48				-16.8%				1.0%				168				730				864
Visa Debit Programs
US		$	433				5.8%				5.8%			$	325				6.5%				6.5%				8,583			$	107				3.4%				3.4%				875				379				471
International			540				-6.4%				9.4%				111				-3.7%				11.9%				3,306				429				-7.0%				8.7%				3,009				1,011				1,085
Visa Inc.			972				-1.3%				7.7%				437				3.7%				7.9%				11,889				536				-5.1%				7.6%				3,884				1,390				1,556
		For the 3 Months Ended December 31, 2014
		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		$	511				3.6%				7.9%			$	359				5.8%				10.8%				4,186			$	152				-1.4%				1.7%				974				698				797
Canada			66				-0.1%				8.7%				62				-0.1%				8.7%				671				5				0.2%				9.0%				11				42				49
CEMEA			264				-7.8%				15.5%				65				3.2%				26.1%				1,616				199				-10.9%				12.4%				1,213				325				321
LAC			285				-0.6%				12.9%				109				-1.3%				12.6%				2,683				177				-0.2%				13.0%				1,130				414				452
US			772				9.4%				9.4%				651				10.2%				10.2%				12,595				121				5.2%				5.2%				916				611				782
Visa Inc.			1,898				3.3%				10.1%				1,245				6.9%				11.1%				21,750				654				-3.1%				8.1%				4,243				2,089				2,401
Visa Credit Programs
US		$	341				13.7%				13.7%			$	327				13.9%				13.9%				3,957			$	13				9.2%				9.2%				16				236				313
International			510				1.6%				10.6%				467				3.9%				11.7%				5,769				43				-18.3%				-1.2%				173				485				543
Visa Inc.			851				6.1%				11.9%				795				7.8%				12.7%				9,725				56				-13.1%				1.4%				189				721				857
Visa Debit Programs
US		$	431				6.2%				6.2%			$	324				6.6%				6.6%				8,638			$	108				4.7%				4.7%				899				374				469
International			616				-2.3%				10.8%				126				2.3%				14.4%				3,387				490				-3.4%				9.9%				3,155				994				1,076
Visa Inc.			1,047				1.0%				8.6%				450				5.4%				8.5%				12,025				597				-2.0%				8.8%				4,054				1,368				1,545

 

---

Operational Performance Data

 

 

		For the 12 Months Ended December 31, 2015
		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		$	2,041				2.8%				10.4%			$	1,467				6.6%				14.8%				18,055			$	574				-6.0%				0.5%			4,055
Canada			233				-8.4%				5.8%				214				-8.6%				5.5%				2,699				19				-5.7%				8.8%			46
CEMEA			909				-15.2%				8.2%				236				-7.8%				15.8%				7,410				673				-17.5%				5.8%			4,746
LAC			943				-12.4%				11.6%				357				-12.7%				14.1%				10,738				587				-12.2%				10.2%			4,381
US			3,221				8.5%				8.5%				2,718				9.3%				9.3%				53,162				503				4.4%				4.4%			3,734
Visa Inc.			7,346				-0.1%				9.3%				4,991				4.9%				11.3%				92,064				2,355				-9.3%				5.2%			16,962
Visa Credit Programs
US		$	1,399				10.6%				10.6%			$	1,344				10.8%				10.8%				16,312			$	55				6.4%				6.4%			66
International			1,948				-0.9%				12.6%				1,807				1.4%				14.1%				24,149				142				-22.9%				-3.2%			641
Visa Inc.			3,347				3.6%				11.8%				3,151				5.2%				12.7%				40,461				197				-16.5%				-0.7%			707
Visa Debit Programs
US		$	1,822				7.0%				7.0%			$	1,374				7.9%				7.9%				36,850			$	448				4.1%				4.1%			3,668
International			2,177				-10.1%				7.6%				467				-5.2%				13.0%				14,753				1,711				-11.4%				6.2%			12,588
Visa Inc.			3,999				-3.1%				7.3%				1,840				4.3%				9.2%				51,602				2,159				-8.6%				5.8%			16,255
		For the 12 Months Ended December 31, 2014
		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		$	1,986				6.7%				9.5%			$	1,376				9.8%				12.6%				15,581			$	610				0.1%				3.3%			3,722		698			797
Canada			254				0.8%				8.4%				234				0.8%				8.5%				2,500				20				0.6%				8.1%			46		42			49
CEMEA			1,071				1.4%				14.6%				256				13.6%				25.9%				5,743				816				-1.9%				11.4%			4,670		325			321
LAC			1,077				-0.1%				11.6%				408				0.4%				12.8%				9,939				668				-0.4%				10.9%			4,183		414			452
US			2,968				9.0%				9.0%				2,486				9.7%				9.7%				48,273				482				5.5%				5.5%			3,687		611			782
Visa Inc.			7,356				5.5%				10.1%				4,760				8.6%				11.3%				82,036				2,596				0.3%				7.8%			16,308		2,089			2,401
Visa Credit Programs
US		$	1,265				12.3%				12.3%			$	1,213				12.5%				12.5%				14,412			$	52				7.8%				7.8%			64		236			313
International			1,966				4.8%				10.6%				1,782				6.4%				11.7%				21,750				184				-8.8%				-0.1%			709		485			543
Visa Inc.			3,231				7.6%				11.3%				2,995				8.8%				12.0%				36,163				235				-5.6%				1.8%			773		721			857
Visa Debit Programs
US		$	1,703				6.7%				6.7%			$	1,273				7.2%				7.2%				33,861			$	430				5.3%				5.3%			3,623		374			469
International			2,423				2.1%				11.4%				492				11.3%				20.4%				12,013				1,930				0.0%				9.3%			11,912		994			1,076
Visa Inc.			4,126				3.9%				9.2%				1,765				8.3%				10.1%				45,874				2,361				0.9%				8.4%			15,535		1,368			1,545

 

---

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
Dec 31, 2015		-4%		4%
Sep 30, 2015		-4%		5%
Jun 30, 2015		0%		8%
Mar 31, 2015		2%		8%
Dec 31, 2014		4%		8%
12 Months Ended
Dec 31, 2015		-2%		6%
Dec 31, 2014		6%		8%

3. Visa Processed Transactions

The table below represents transactions involving Visa, Visa Electron, Interlink and PLUS cards processed on Visa’s networks.

 

Period		Processed Transactions         (millions)		Growth
3 Months Ended
Dec 31, 2015		18,986		8%
Sep 30, 2015		18,365		8%
Jun 30, 2015		18,024		8%
Mar 31, 2015		16,980		11%
Dec 31, 2014		17,599		10%
12 Months Ended
Dec 31, 2015		72,355		9%
Dec 31, 2014		66,607		10%

 

---

Operational Performance Data

 

 

Footnote

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 based on results reported quarterly by Visa’s financial institution clients on their operating certificates. Estimates may be utilized if data is unavailable.

On occasion, previously presented information may be updated. Prior period updates, if any, are not material.

Visa’s CEMEA region is comprised of countries in Central Europe, the Middle East and Africa. Effective with the 3 months ended September 2013, Croatia moved from the CEMEA region to Visa Europe. 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. International 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.

 

Exhibit 99.2

 

Visa Inc.

Fiscal First Quarter 2016 Financial Results

January 28, 2016

---

 

Forward-Looking Statements

This presentation contains forward-looking statements within the meaning of the U.S. Private Securities Litigation Reform Act of 1995. Forward-looking statements generally are identified by words such as “estimates,” “believe,” “outlook,” “will,” “continue” and other similar expressions. Examples of forward-looking statements include, but are not limited to, statements we make about our revenue, client incentives, operating margin, tax rate, earnings per share, 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 not statements of historical fact or guarantees of future performance; and (iii) are subject to risks, uncertainties, assumptions or changes in circumstances that are difficult to predict or quantify. Therefore, actual results could differ materially and adversely from our forward-looking statements due to a variety of factors, including the following: the impact of laws, regulations and marketplace barriers, including: increased regulation of fees, transaction routing, payment card practices or other aspects of the payments industry in the United States, including new or revised regulations issued under the Dodd-Frank Wall Street Reform and Consumer Protection Act; increased regulation in jurisdictions outside of the United States; increased government support of national payments networks outside the United States; and increased regulation of consumer privacy, data use and security; developments in litigation and government enforcement, including those affecting interchange reimbursement fees, antitrust and tax; new lawsuits, investigations or proceedings, or changes to our potential exposure in connection with pending lawsuits, investigations or proceedings; economic factors, such as: economic fragility in the Eurozone, the United States and in other advanced and emerging markets; general economic, political and social conditions in mature and emerging markets globally; general stock market fluctuations which may impact consumer spending; material changes in cross-border activity, foreign exchange controls and fluctuations in currency exchange rates; and material changes in our financial institution clients’ performance compared to our estimates; industry developments, such as competitive pressure, rapid technological developments and disintermediation from our payments network; system developments, such as: disruption of our transaction processing systems or the inability to process transactions efficiently; account data breaches or increased fraudulent or other illegal activities involving Visa-branded cards or payment products; and failure to maintain systems interoperability with Visa Europe;

the transaction with Visa Europe may not be consummated on the terms currently contemplated or at all;

Visa Europe’s business may not be successfully integrated with our business or we may not achieve the anticipated benefits of the transaction; the costs and risks associated with the transaction with Visa Europe;

matters arising in connection with Visa Europe’s or our efforts to comply with and satisfy applicable regulatory approvals and closing conditions relating to the transaction; the loss of organizational effectiveness or key employees; the failure to integrate acquisitions successfully or to effectively develop new products and businesses; natural disasters, terrorist attacks, military or political conflicts, and public health emergencies; and various other factors, including those more fully described in our filings with the U.S. Securities and Exchange Commission, including our Annual Report on Form 10-K for the year ended September 30, 2015, and our subsequent reports on Forms 10-Q and 8-K.

You should not place undue reliance on such statements. Except as required by law, we do not intend to update or revise any forward–looking statements as a result of new information, future developments or otherwise.

2 Fiscal First Quarter 2016 Financial Results

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Net Fiscal First Quarter Results

Solid operating revenues of $3.6 billion, up 5% over prior year

GAAP quarterly net income of $1.9 billion and $0.80 diluted earnings per share

Adjusted quarterly net income of $1.7 billion and $0.69 diluted earnings per share

Repurchased 25.7 million shares of class A common stock in the open market at an average price of $78.52 per share, using $2.0 billion of cash on hand

Note: See appendix for reconciliation of adjusted non-GAAP measures to the closest comparable GAAP measures.

3 Fiscal First Quarter 2016 Financial Results

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Payments Volume

US$ in billions, nominal, except percentages

Quarter ended September

2014

2015 1,216 1,265

INTL = International

U.S. U.S.

632 693 770 800

U.S. U.S.

313 345 446 465

INTL INTL U.S. U.S.

584 572 INTL INTL 319 349

457 456

INTL 127 INTL 116

Total Visa Inc. Credit Debit

YOY Change 4% 4% 4%

(nominal)

YOY Change 12% 13% 10%

(constant)

Note: On occasion, previously submitted volume information may be updated to reflect revised client submissions or other adjustments. Prior period updates are not material. Figures may not recalculate exactly due to rounding. Percentage changes are calculated based on unrounded numbers. Constant dollar growth rates exclude the impact of foreign currency fluctuations against the U.S. dollar in measuring performance.

4 Fiscal First Quarter 2016 Financial Results

---

 

Payments Volume

US$ in billions, nominal, except percentages

Quarter ended December

Note: Current quarter payments volume and other select metrics are provided in the operational performance data supplement in the press release to provide more recent operating data. Service revenues continue to be recognized based on payments volume in the prior quarter. On occasion, reported payments volume information may be updated to reflect revised client submissions or other adjustments. Prior period updates are not material. Figures may not recalculate exactly due to rounding. Percentage changes are calculated based on unrounded numbers. Constant dollar growth rates exclude the impact of foreign currency fluctuations against the U.S. dollar in measuring performance.

2014

1,245 1,305

2015 INTL = International

U.S. U.S.

651 U.S. 713U.S. 795 827

575 631 U.S. U.S.

327U.S. U.358S. 450 477

277 313

INTL INTL U.S. U.S.

594 592 INTL 467 INTL INTL INTL 470 U.S. 324 U.S. 355

298 319

420 457 INTL 126 INTL 122

INTL 109 INTL 127

Total Visa Inc. Credit Debit

YOY Change

(nominal) 5% 4% 6%

YOY Change 11% 12% 11%

(constant)

5 Fiscal First Quarter 2016 Financial Results

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Transactions

in millions, except percentages

Quarter ended December

2014

2015

29,047

25,994

38% 38%

CreditCr t CredCreditt 18,986

17,599

38% 38%

62% 62%

Debit Debit Debit

62%

Total Transactions Processed Transactions

YOY Change 12% 8%

Note: Total transactions represent payments and cash transactions as reported by Visa clients on their operating certificates. On occasion, previously submitted transaction information may be updated to reflect revised client submissions or other adjustments. Prior period updates are not material. Figures may not recalculate exactly due to rounding. Percentage changes are calculated based on unrounded numbers. Processed transactions represent transactions involving Visa, Visa Electron, Interlink and PLUS cards processed on Visa’s networks.

6 Fiscal First Quarter 2016 Financial Results

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Total Cards

in millions, except percentages

Quarter ended September

2014

2015

2,340 2,459

1,491 1,572

849 887

Visa Inc. Credit Debit

YOY Change 5% 5% 5%

Note: The data presented is based on results reported quarterly by Visa clients on their operating certificates. Estimates may be utilized if data is unavailable. On occasion, previously submitted card information may be updated to reflect revised client submissions or other adjustments. Prior period updates are not material. Figures may not recalculate exactly due to rounding. Percentage changes are calculated based on unrounded numbers.

7 Fiscal First Quarter 2016 Financial Results

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Revenue – Q1 2016

US$ in millions, except percentages

Fiscal 2015

Fiscal 2016

4,095 4,353

3,382 3,565

(713) (788)

Gross Revenues Client Net Operating

Incentives Revenues

YOY 6% 10% 5%

Change

Fiscal 2016 % of 18% 82%

Gross Revenues

Note: Figures may not recalculate exactly due to rounding. Percentages are calculated based on unrounded numbers.

8 Fiscal First Quarter 2016 Financial Results

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Revenue Detail – Q1 2016

US$ in millions, except percentages

Fiscal 2015

Fiscal 2016

1,645

1,538 1,479

1,383

970 1,031

204 198

Service Revenues Data Processing International Other Revenues

Revenues Transaction Revenues

YOY 7% 7% 6% (3%)

Change

Note: Figures may not recalculate exactly due to rounding. Percentage changes are calculated based on unrounded numbers.

9 Fiscal First Quarter 2016 Financial Results

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Operating Margin – Q1 2016

US$ in millions, except percentages

Fiscal 2015

Fiscal 2016

3,382 3,565

66% 67%

2,238 2,396

1,144 1,169

Net Operating Total Operating Operating Operating

Revenues Expenses Income Margin

YOY 5% 2% 7% 1 ppt

Change

Note: Operating margin is calculated as operating income divided by net operating revenues. Figures may not recalculate exactly due to rounding. Percentages are calculated based on unrounded numbers.

10 Fiscal First Quarter 2016 Financial Results

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Operating Expenses – Q1 2016

US$ in millions, except percentages

Fiscal 2015

Fiscal 2016

509 499

205 194

114 128 120 120 126 156

70 72

Personnel Marketing Network & Professional Depreciation & General &

Processing Fees Amortization Administrative

YOY (2%) (5%) 12% 2% (1%) 24%

Change

Note: Figures may not recalculate exactly due to rounding. Percentage changes are calculated based on unrounded numbers.

11 Fiscal First Quarter 2016 Financial Results

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Other Financial Results

Cash, cash equivalents and available-for-sale investment securities of $24.8 billion at the end of the fiscal first quarter

Free cash flow of $1.9 billion for the fiscal first quarter

Capital expenditures of $126 million during the fiscal first quarter

Issued $16.0 billion of fixed-rate senior notes

12 Fiscal First Quarter 2016 Financial Results

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Financial Metrics for Fiscal Year 2016

Constant dollar revenue growth of high single-digit

Annual net revenue growth to low double-digit range

Negative 3 ppts foreign currency impact

Client incentives as % of

gross revenues 17.5%—18.5% range

Annual operating margin Mid 60s

Adjusted effective tax rate Low 30s

Annual adjusted diluted class Constant dollar EPS growth of low-end of mid-teens

A common stock earnings per range

share growth Negative 4 ppts foreign currency impact

Annual free cash flow About $7 billion

Note: fourth The quarters financial of 2016, outlook the for Company fiscal full-year will realize 2016 interest does not expense include per any quarter impact of from about the $122 Visa million Europe related transaction. to the [Over issuance the of fiscal its fixed-rate second, third senior and notes. ]

13 Fiscal First Quarter 2016 Financial Results

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Appendix

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Reconciliation of Non-GAAP Financial Results

US$ in millions, except percentages and per share data

During the first quarter of fiscal 2016, we recorded a decrease of $255 million in the fair value of the Visa Europe put option, resulting in the recognition of non-cash, non-operating income that we do not believe is indicative of our operating performance. As such, we believe the presentation of adjusted financial results provides a clearer understanding of our operating performance for the current period presented. This amount is not subject to income tax and therefore has no impact on our reported income tax provision. There was no comparable adjustment recorded for the three months ended December 31, 2014. Adjusted net income, effective income tax rate and diluted earnings per share are non-GAAP financial measures and should not be relied upon as substitutes for measures calculated in accordance with U.S. GAAP. The following table reconciles our as-reported net income, effective income tax rate and diluted earnings per share, which are calculated in accordance with U.S.

GAAP, to our respective non-GAAP adjusted financial measures for the three months ended December 31, 2015:

Three Months Ended December 31, 2015

Effective Income Tax Diluted Earnings per

Net Income Rate(1) Share(1)

As reported $ 1,941 26% $ 0.80

Revaluation of Visa Europe put option (255) 3% (0.10)

As adjusted $ 1,686 29% $ 0.69

Diluted weighted-average shares outstanding, as reported 2,430

(1) Figures in the table may not recalculate exactly due to rounding. Effective income tax rate and diluted earnings per share figures are calculated based on

unrounded numbers.

A-1 Fiscal First Quarter 2016 Financial Results

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Calculation of Free Cash Flow

US$ in millions

Additions (+) /

Reductions (-) to Three Months Ended

Net income December 31, 2015(1)

Net income (as reported) 1,941

Capital Assets + Depreciation and amortization 120

— Capital expenditures (126)

(6)

Litigation + Litigation provision —

— Settlement payments (12)

+ Settlement payments funded by litigation escrow 11

(2)

Share-based Compensation + Share-based compensation 39

Pension + Pension expense 1

— Pension contribution (3)

(1)

Taxes + Income tax provision 698

— Income taxes paid (1) (79)

619

Visa Europe Put Option — Fair value adjustment (255)

Changes in Working Capital +/- Changes in other working capital accounts (2) (420)

Total Free Cash Flow 1,916

(1) Reported net income includes interest expense of $24 million recognized in the first quarter of fiscal 2016.

(2) The majority of estimated tax payments related to the fiscal first quarter are paid in the fiscal second quarter.

(3) Includes changes in client incentives, trade receivable/payable, settlement receivable/payable and personnel incentives.

A-2 Fiscal First Quarter 2016 Financial Results