Press release from PR Newswire
Visa Inc. Posts Strong Fiscal Third Quarter 2012 Earnings Results and Authorizes New $1 Billion Share Repurchase Program
Wednesday, July 25, 2012
Visa Inc. Posts Strong Fiscal Third Quarter 2012 Earnings Results and Authorizes New $1 Billion Share Repurchase Program16:05 EDT Wednesday, July 25, 2012- Adjusted quarterly net income of $1.1 billion or $1.56 per diluted class A common share excluding a litigation provision and related tax benefit - GAAP quarterly net loss of $1.8 billion inclusive of a litigation provision of $4.1 billion covered under the Company's Retrospective Responsibility Plan - The Company authorized a new $1 billion share repurchase program and deposited $150 million into the litigation escrowSAN FRANCISCO, July 25, 2012 /PRNewswire/ -- Visa Inc. (NYSE: V) today announced financial results for the Company's fiscal third quarter 2012 ended June 30, 2012. On a GAAP basis, the Company reported a net loss of $1.8 billion, inclusive of a litigation provision of $4.1 billion, related to the previously announced settlement agreement in the Multi-District Litigation case. Visa's share will be paid from the previously funded litigation escrow account established pursuant to the Company's Retrospective Responsibility Plan.Excluding the litigation provision of $4.1 billion and related tax benefit, adjusted net income for the quarter was $1.1 billion, or $1.56 per diluted class A common share, an increase of 25% over the prior year on an adjusted basis. The adjusted weighted-average number of diluted class A common shares outstanding during the third quarter was 675 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 third quarter of 2012 was $2.6 billion, an increase of 10% over the prior year and driven by strong double-digit growth in service revenues, data processing revenues and international transaction revenues. There was no significant impact on current quarter results related to the strengthening or weakening of the U.S. dollar over the prior year."Visa once again reported solid global growth in payments volume, cross border transactions and processed transactions outside the U.S., executing on our strategy of growing the electronification of payments worldwide. We are pleased that we were able to come to a resolution in the merchant litigation which was acceptable to most parties while ensuring the long-term health of the U.S. payments industry," said Joseph Saunders, chairman and chief executive officer of Visa Inc. "As we look forward, we remain focused on launching new payment solutions and products for our financial and merchant partners and consumers, while supporting the Visa brand and the advancement of electronic payments." Fiscal Third Quarter 2012 Financial Highlights:Payments volume growth, on a constant dollar basis, for the three months ended March 31, 2012, on which fiscal third quarter service revenue is recognized, was a positive 11% over the prior year at $958 billion.Payments volume growth, on a constant dollar basis, for the three months ended June 30, 2012, was a positive 6% over the prior year at $979 billion.Cross-border volume growth, on a constant dollar basis, was a positive 14% for the three months ended June 30, 2012.Total processed transactions, which represent transactions processed by VisaNet, for the three months ended June 30, 2012, were 13.1 billion, a positive 1% increase over the prior year. Fiscal third quarter 2012 service revenues were $1.2 billion, an increase of 15% 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 17% over the prior year to $1.0 billion. International transaction revenues, which are driven by cross-border activity, grew 13% over the prior year to $748 million. Other revenues, which include the Visa Europe licensing fee, were $175 million, a 7% increase over the prior year. Client incentives, which are a contra revenue item, were $614 million and represent 19% of gross revenues.The Company recorded a $4.1 billion pre-tax provision, or $2.9 billion on an after-tax basis, in the fiscal third quarter of 2012. This represents the Company's financial portion in the settlement of the Multi-District Litigation case. Excluding the litigation provision, total operating expenses increased 10% to $1.1 billion during the fiscal third quarter, primarily due to higher personnel expense and professional fees associated with investments in technology projects to support our growth initiatives.Cash, cash equivalents, restricted cash, and available-for-sale investment securities were $9.4 billion at June 30, 2012. Excluding the litigation provision and the related tax benefit, the Company's adjusted effective tax rate was 29.2% for the quarter ended June 30, 2012. The Company's adjusted effective tax rate is a non-GAAP financial measure that is reconciled to its most directly comparable GAAP measure in the accompanying financial tables.Notable Events:During the three months ended June 30, 2012, the Company repurchased approximately 4.0 million class A common shares, at an average price of $115.51 per share, for a total cost of $461 million. As announced on July 13, 2012, the Company, MasterCard and U.S. financial institution defendants signed a memorandum of understanding to enter into a settlement agreement to resolve the Class Plaintiffs' claims in the Multi-District Litigation case, and announced an agreement in principle to settle with the individual plaintiffs whose claims were consolidated into the case for pre-trial purposes. The proposed settlement payments for both the Class and individual claims would be approximately $6.6 billion, of which Visa's share would represent approximately $4.4 billion. Visa's share will be paid from the litigation escrow account established pursuant to the Company's Retrospective Responsibility Plan.As announced on July 19, 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 September 4, 2012, to all holders of record of the Company's class A, class B and class C common stock as of August 17, 2012.The Company's Board of Directors has authorized a new $1 billion class A share repurchase program. The authorization will be in place through July 2013, and is subject to further change at the discretion of the Board.On July 24, 2012, the Company deposited $150 million into the litigation escrow account previously established under its Retrospective Responsibility Plan. Under the terms of the plan, when the Company funds the litigation escrow account, the value of the Company's class B shares ? which are held by U.S. financial institutions and their affiliates and successors ? is correspondingly adjusted via a reduction in the class B shareholders' as-converted share count. The $150 million deposit by the Company reduced the number of common shares outstanding on an as-converted basis from 104,452,843 to 103,257,583. The funding calculations were conducted in accordance with the Company's certificate of incorporation using the volume-weighted average price over the 3-day pricing period from July 19, 2012, through July 23, 2012. As a result of the deposit, the conversion rate applicable to the Company's class B common stock has decreased from 0.4254 to 0.4206 as of July 24, 2012.Financial Outlook:Visa Inc. updates its financial outlook for the following metric through 2012: Adjusted annual diluted class A common stock earnings per share growth in the low twenties.*Visa Inc. affirms its financial outlook for the following metrics for 2012:Annual net revenue growth in the low double digits; Client incentives as a percent of gross revenues: 17% to 18% range; Marketing expenses: Under $1 billion; Adjusted annual operating margin of about 60%*; Adjusted tax rate: 33% to 34% range*; Capital expenditures $350 million to $400 million range; and Annual free cash flow greater than $4 billion.*Financial Outlook excludes (i) the impact of the litigation provision and related tax benefit recorded in Q3 2012; and (ii) a non-cash benefit related to the remeasurement of deferred tax liabilities recorded in the tax provision during Q2 2012. These deferred tax liabilities are primarily associated with indefinite-lived intangible assets recorded as part of Visa's October 2007 reorganization. Including the net impact of the litigation provision and remeasurement of deferred tax liabilities, the annual GAAP tax rate is expected to be between 30 ? 31%.Fiscal Third 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 VisaVisa 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.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," "subject to," and similar references to the future. Examples of such forward-looking statements include, but are not limited to, statements we make about the settlement of the multi-district interchange litigation 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: the impact of new laws, regulations and marketplace barriers, including: rules capping debit interchange reimbursement fees promulgated under the U.S. Wall Street Reform and Consumer Protection Act, or the Reform Act; rules under the Reform Act expanding issuers' and merchants' choice among debit payment networks; U.S. government and other parties' reactions to the changes we have made to our business in response to the Reform Act; increased regulation outside the United States and in other product categories; and rules about consumer privacy and data use and security;developments in current or future litigation or government enforcement, including interchange, antitrust and tax disputes, and also including our failure to satisfy the conditions necessary to make the multi-district litigation settlements effective; economic factors, such as: an increase or spread of the current European crisis involving sovereign debt and the euro; other global economic, political and health conditions; cross-border activity and currency exchange rates; and material changes in our clients' performance compared to our estimates; industry developments, such as competitive pressure, rapid technological developments, and disintermediation from the payments value stream; 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 our cards; and issues arising at Visa Europe, including failure to maintain interoperability between our systems; costs arising if Visa Europe were to exercise its right to require us to acquire all of its outstanding stock; loss of organizational effectiveness or key employees; failure to integrate recent acquisitions successfully or to effectively launch new products and businesses; 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, email@example.comMedia Relations: Will Valentine, 415-932-2564, firstname.lastname@example.orgVISA INC.CONSOLIDATED STATEMENTS OF OPERATIONS(UNAUDITED)Three Months Ended June 30, Nine Months Ended June 30,2012201120122011(in millions, except per share data)Operating RevenuesService revenues$ 1,216$ 1,055$ 3,608$ 3,156Data processing revenues1,0408862,9132,553International transaction revenues7486622,2291,916Other revenues175167532484Client incentives(614)(448)(1,592)(1,304)Total operating revenues2,5652,3227,6906,805Operating ExpensesPersonnel4353631,2551,071Network and processing10291303251Marketing242251602631Professional fees9984251222Depreciation and amortization8474244211General and administrative112114320319Litigation provision4,098-4,0986Total operating expenses5,1729777,0732,711Operating (loss) income (2,607)1,3456174,094Other Income (Expense)Interest expense(11)(11)(28)(19)Investment income, net128831107Other (1)121(1)120Total other income -1982208(Loss) Income before income taxes (2,607)1,5436194,302Income tax (benefit) provision(768)5391391,534Net (loss) income including non-controlling interest(1,839)1,0044802,768Loss attributable to non-controlling interest-122Net (loss) income attributable to Visa Inc.$(1,839)$ 1,005$ 482$ 2,770Basic (loss) earnings per shareClass A common stock$ (2.74)$ 1.43$ 0.71$ 3.90Class B common stock$ (1.16)$ 0.70$ 0.32$ 1.97Class C common stock$ (2.74)$ 1.43$ 0.71$ 3.90Basic weighted-average shares outstandingClass A common stock525521523506Class B common stock245245245245Class C common stock40594378Diluted (loss) earnings per shareClass A common stock$ (2.74)$ 1.43$ 0.71$ 3.89Class B common stock$ (1.16)$ 0.70$ 0.32$ 1.96Class C common stock $ (2.74)$ 1.43$ 0.71$ 3.89Diluted weighted-average shares outstandingClass A common stock672704681712Class B common stock245245245245Class C common stock 40594378VISA INC.CONSOLIDATED BALANCE SHEETS(UNAUDITED)June 30,September 30,20122011(in millions, except par value data)AssetsCash and cash equivalents$ 1,558$ 2,127Restricted cash - litigation escrow4,2822,857Investment securities Trading6357Available-for-sale6821,214Settlement receivable443412Accounts receivable793560Customer collateral886931Current portion of client incentives224278Deferred tax assets1,645489Prepaid expenses and other current assets323265Total current assets10,8999,190Investment securities, available-for-sale 2,923711Client incentives9785Property, equipment and technology, net1,5811,541Other assets123129Intangible assets, net11,43711,436Goodwill11,68111,668Total assets$ 38,741$ 34,760LiabilitiesAccounts payable$ 111$ 169Settlement payable747449Customer collateral886931Accrued compensation and benefits389387Client incentives 763528Accrued liabilities 574562Accrued litigation4,384425Total current liabilities7,8543,451Deferred tax liabilities3,9444,205Other liabilities785667Total liabilities12,5838,323EquityPreferred stock, $0.0001 par value, 25 shares authorized and none issued$ -$ -Class A common stock, $0.0001 par value, 2,001,622 shares authorized, 527 and 520 shares issued and outstanding at June 30, 2012, and September 30, 2011, respectively--Class B common stock, $0.0001 par value, 622 shares authorized, 245 shares issued and outstanding at June 30, 2012 and September 30, 2011--Class C common stock, $0.0001 par value, 1,097 shares authorized, 38 and 47 shares issued and outstanding at June 30, 2012, and September 30, 2011, respectively--Additional paid-in capital19,92219,907Accumulated income 6,4116,706Accumulated other comprehensive income (loss), netInvestment securities, available-for-sale1-Defined benefit pension and other postretirement plans(189)(186)Derivative instruments classified as cash flow hedges2518Foreign currency translation adjustments(12)(8)Total accumulated other comprehensive loss, net(175)(176)Total equity26,15826,437Total liabilities and equity $ 38,741$ 34,760VISA INC.CONSOLIDATED STATEMENTS OF CASH FLOWS(UNAUDITED)Nine Months Ended June 30,20122011(in millions)Operating ActivitiesNet income including non-controlling interest$ 480$ 2,768Adjustments to reconcile net income including non-controlling interest to net cash provided by (used in) operating activities:Amortization of client incentives1,5921,304Fair Value adjustment for the Visa Europe Put Option-(122)Share-based compensation112122Excess tax benefit for share-based compensation(42)(12)Depreciation and amortization of intangible assets and property, equipment and technology 244211Litigation provision and accretion4,09915Deferred income taxes(1,427)169Other(34)(107)Change in operating assets and liabilities:Trading securities(6)(5)Settlement receivable(31)3Accounts receivable(231)(70)Client incentives(1,315)(1,144)Other assets(35)30Accounts payable(58)(47)Settlement payable29852Accrued compensation and benefits-(37)Accrued and other liabilities13474Accrued litigation (140)(200)Net cash provided by operating activities3,6403,004Investing ActivitiesPurchases of property, equipment and technology(235)(236)Proceeds from disposal of property, equipment and technology2-Purchases of intangible assets(35)-Investment securities, available-for-sale:Purchases(3,326)(50)Proceeds from sales and maturities1,64035Purchases of / contributions to other investments(9)(10)Proceeds / distributions from other investments23104Acquisitions, net of cash received of $17 and $22, respectively (3)(268)Net cash used in investing activities(1,943)(425)Financing ActivitiesRepurchase of class A common stock(536)(1,600)Dividends paid(448)(320)Deposits into litigation escrow account?retrospective responsibility plan(1,565)(1,200)Payment from litigation escrow account?retrospective responsibility plan140210Cash proceeds from exercise of stock options 11163Excess tax benefit for share-based compensation 4212Principal payments on debt -(9)Principal payments on capital lease obligations(6)(10)Net cash used in financing activities (2,262)(2,854)Effect of exchange rate changes on cash and cash equivalents (4)8Decrease in cash and cash equivalents (569)(267)Cash and cash equivalents at beginning of year 2,1273,867Cash and cash equivalents at end of period$ 1,558$ 3,600Supplemental Disclosure of Cash Flow InformationIncome taxes paid, net of refunds$ 1,575$ 1,251Amounts included in accounts payable and accrued and other liabilities related to purchases of intangible assets and property, equipment and technology$ 85$ 17Interest payment on debt$ -$ 2VISA INC.FISCAL 2011 AND 2012 QUARTERLY RESULTS OF OPERATIONS(UNAUDITED)Fiscal 2011 Quarter EndedFiscal 2012 Quarter EndedJune 30,2011September 30,2011December 31, 2011March 31, 2012June 30,2012(in millions)Operating RevenuesService revenues$ 1,055$ 1,105$ 1,151$ 1,241$ 1,216Data processing revenues8869259519221,040International transaction revenues662758748733748Other revenues167171178179175Client incentives(448)(576)(481)(497)(614)Total operating revenues2,3222,3832,5472,5782,565Operating Expenses Personnel363388389431435Network and processing9110698103102Marketing251239190170242Professional fees84115708299Depreciation and amortization7477808084General and administrative11495102106112Litigation provision-1--4,098Total operating expenses9771,0219299725,172Operating income (loss)1,3451,3621,6181,606(2,607)Other Income (Expense)Interest expense(11)(13)(10)(7)(11)Investment income, net88110912Other1214(1)1(1)Total other income (expense)198(8)(1)3-Income (loss) before income taxes 1,5431,3541,6171,609(2,607)Income tax provision (benefit) 539476590317(768)Net income (loss) including non-controlling interest1,0048781,0271,292(1,839)Loss attributable to non-controlling interest122--Net income (loss) attributable to Visa Inc.$ 1,005$ 880$ 1,029$ 1,292$ (1,839)VISA INC.Reconciliation of Non-GAAP Financial ResultsUS$ in millions, except margin ratio and per share dataDuring the third quarter of fiscal 2012, we recorded a provision related to litigation subject to the retrospective responsibility plan of $4.1 billion and related tax benefits ("litigation provision adjustment"). Additionally, our reported financial results for the nine months ended June 30, 2012 benefited from a one-time non-cash adjustment of $208 million related to the remeasurement of our net deferred tax liabilities ("deferred tax adjustment") recorded in our income tax provision during the three months ended March 31, 2012. The deferred tax adjustment has no cash impact to us. During the third quarter of fiscal 2011, we recorded a decrease of $122 million in the fair value of the Visa Europe put option ("revaluation of the Visa Europe put option"), which resulted in the recognition of non-cash, non-operating other income in our financial results. These amounts are not subject to income tax and therefore have no impact on our reported income tax provision. We believe the presentation of adjusted financial results excluding the litigation provision adjustment, the deferred tax adjustment, and the revaluation of the Visa Europe put option provides a clearer understanding of our operating performance for the respective periods. Three Months Ended June 30,Operating expensesOperating margin(1)Net (loss) incomeattributable to Visa Inc.Diluted (loss) earnings per share(2)20122011201220112012201120122011As reported$ 5,172$ 977(102)%58%$ (1,839)$ 1,005$ (2.74)$ 1.43Litigation provision (4,098)-NM-2,894(3)-4.30-Revaluation of Visa Europe put option-----(122)-(0.17)Adjusted $ 1,074$ 97758%58%$ 1,055$ 883$ 1.56$ 1.26Diluted weighted-average shares outstanding (4)675704Nine Months Ended June 30,Operating expensesOperating margin(1)Net Incomeattributable to Visa Inc.Diluted earningsper share(2)20122011201220112012201120122011As reported$ 7,073$ 2,7118%60%$ 482$ 2,770$ 0.71$ 3.89Litigation provision (4,098)-53%-2,894(3)-4.25-Impact of deferred tax adjustment----(208)-(0.30)-Revaluation of Visa Europe put option-----(122)-(0.17)Adjusted $ 2,975$ 2,71161%60%$ 3,168$ 2,648$ 4.66$ 3.72Diluted weighted-average shares outstanding (as reported)681712(1) Operating margin is calculated as operating (loss) income divided by total operating revenues.(2) Diluted (loss) earnings per share figures calculated based on whole numbers, not rounded numbers.(3) The litigation provision adjustment to net (loss) income attributable to Visa Inc. is shown net of tax. The taximpact is determined by applying applicable federal and state tax rates to the litigation provision and applyingrelated reserves for uncertain tax positions.(4) For the three months ended June 30, 2012, the computation of adjusted diluted earnings per share included theeffect of 3 million incremental dilutive shares, which were excluded from the computation of reported diluted lossper share as they are considered anti-dilutive when applied to a net loss.VISA INC. Reconciliation of Non-GAAP Financial Results US$ in millions, except effective tax rate The following table presents our adjusted effective income tax rates for the three and nine months ended June 30, 2012, which excludes the impact of the covered litigation provision of $4.1 billion recorded in the third quarter of fiscal 2012, and the one-time, non-cash benefit, of $208 million, resulting from the remeasurement of our net deferred tax liabilities in the second quarter of fiscal 2012. We believe the presentation of our adjusted effective income tax rates provides a clearer understanding of our operating performance for these periods. We believe the covered litigation provision and the one-time non-cash adjustment to remeasure our deferred taxes recorded in our effective income tax rates are not indicative of our financial performance in the current or future periods.Three Months Ended June 30, 2012Nine Months Ended June 30, 2012Effectivetax rate(1)Effective tax rate(1)As reported29.5%22.4%Litigation Provision(0.3)%6.1%Remeasurement of deferredtax liabilities-4.4%Adjusted29.2%32.9%(1) Effective income tax rate calculated based on whole numbers, not rounded numbers. Operational Performance DataThe tables below provide information regarding the available operational results for the 3 months ended June 30, 2012, as well as the prior four quarterly reporting periods and the 12 months ended June 30, 2012 and 2011, for cards carrying the Visa, Visa Electron and Interlink brands. Also included is a table with information on the number of billable transactions processed on Visa Inc.'s CyberSource network. 1. Branded Volume and TransactionsThe tables present total volume, payments volume, and cash volume, and the number of payments transactions, cash transactions, accounts and cards for cards carrying the Visa, Visa Electron and Interlink brands. Card counts include PLUS proprietary cards. Nominal and constant dollar growth rates over prior years are provided for volume-based data. For the 3 Months Ended June 30, 2012TotalVolume($ billions)Growth(NominalUSD)Growth(ConstantUSD)PaymentsVolume($ billions)Growth(NominalUSD)Growth(ConstantUSD)PaymentsTransactions(millions)CashVolume($ billions)Growth(NominalUSD)Growth(ConstantUSD)CashTransactions (millions)All Visa Credit & DebitAsia Pacific$4128.7%11.1%$27711.4%12.9%2,988$1353.6%7.6%651Canada623.5%8.1%573.7%8.3%51351.7%6.2%12CEMEA23213.4%22.4%4529.8%40.7%74518710.1%18.7%1,083LAC2460.7%16.5%883.0%19.8%2,066158-0.6%14.8%964US 618-0.9%-0.9%512-1.1%-1.1%10,0361060.1%0.1%861Visa Inc.1,5703.9%8.1%9794.0%6.3%16,3495913.7%11.2%3,570Visa Credit ProgramsUS$2569.3%9.3%$2469.8%9.8%2,880$11-0.6%-0.6%15Rest of World4266.6%11.1%3798.8%13.2%4,42648-8.2%-2.7%191Visa Inc.6827.6%10.4%6249.2%11.8%7,30658-6.9%-2.3%206Visa Debit ProgramsUS$362-7.1%-7.1%$266-9.4%-9.4%7,157$950.2%0.2%846Rest of World5267.8%18.0%8817.1%28.5%1,8874386.1%16.1%2,518Visa Inc.8881.2%6.3%355-4.0%-2.3%9,0445335.0%12.9%3,364For the 3 Months Ended March 31, 2012TotalVolume($ billions)Growth(NominalUSD)Growth(ConstantUSD)PaymentsVolume($ billions)Growth(NominalUSD)Growth(ConstantUSD)PaymentsTransactions(millions)CashVolume($ billions)Growth(NominalUSD)Growth(ConstantUSD)CashTransactions(millions)Accounts(millions)Cards (millions)All Visa Credit & DebitAsia Pacific$40816.0%14.3%$26916.6%14.0%2,874$13914.7%14.8%637530631Canada566.8%8.8%516.9%8.9%46355.6%7.6%102432CEMEA21119.1%24.1%4033.3%39.7%66517116.1%20.9%1,015250251LAC25113.2%18.9%9016.9%22.8%2,01616111.2%16.8%953391420US 6156.9%6.9%5086.5%6.5%10,1151088.8%8.8%880536691Visa Inc.1,54111.8%12.9%95811.1%11.2%16,13458412.9%15.8%3,4951,7322,025Visa Credit ProgramsUS$23411.8%11.8%$22312.1%12.1%2,599$105.5%5.5%15205265Rest of World41113.1%12.9%36514.9%14.4%4,229470.8%2.4%182453513Visa Inc.64512.6%12.5%58813.8%13.5%6,829571.6%2.9%197658778Visa Debit ProgramsUS$3824.0%4.0%$2842.4%2.4%7,516$979.1%9.1%865331426Rest of World51517.1%21.0%8525.9%29.5%1,79042915.5%19.4%2,433742820Visa Inc.89711.2%13.1%3707.0%7.6%9,30652714.3%17.4%3,2991,0741,246For the 3 Months Ended December 31, 2011TotalVolume($ billions)Growth(NominalUSD)Growth(ConstantUSD)PaymentsVolume($ billions)Growth(NominalUSD)Growth(ConstantUSD)PaymentsTransactions(millions)CashVolume($ billions)Growth(NominalUSD)Growth(ConstantUSD)CashTransactions(millions)Accounts(millions)Cards(millions)All Visa Credit & DebitAsia Pacific$40913.2%11.5%$27615.1%12.0%2,948$1339.5%10.3%621519613Canada604.1%5.6%564.7%6.2%5005-2.2%-0.8%102736CEMEA22120.1%25.0%3929.1%36.6%64318218.3%22.8%1,066241243LAC26313.0%19.1%9314.7%20.7%2,06816912.1%18.3%998383414US 6357.4%7.4%5297.3%7.3%10,6081067.9%7.9%879552704Visa Inc.1,58811.3%12.4%99310.6%10.6%16,76859512.4%15.5%3,5741,7222,011Visa Credit ProgramsUS$2489.7%9.7%$2379.7%9.7%2,808$1110.4%10.4%16203263Rest of World43012.8%12.2%37913.5%12.7%4,366517.7%9.1%189456516Visa Inc.67811.6%11.3%61612.0%11.5%7,174638.2%9.3%205659779Visa Debit ProgramsUS$3875.9%5.9%$2925.4%5.4%7,800$957.6%7.6%863349441Rest of World52315.1%19.3%8520.3%24.4%1,79343814.1%18.4%2,506714791Visa Inc.91011.0%13.2%3778.4%9.1%9,59353312.9%16.3%3,3691,0631,232For the 3 Months Ended September 30, 2011TotalVolume($ billions)Growth(NominalUSD)Growth(ConstantUSD)PaymentsVolume($ billions)Growth(NominalUSD)Growth(ConstantUSD)PaymentsTransactions(millions)CashVolume($ billions)Growth(NominalUSD)Growth(Constant USD)Cash Transactions(millions)Accounts(millions)Cards(millions)All Visa Credit & DebitAsia Pacific$40223.1%13.9%$27228.2%17.4%2,888$13013.6%7.1%626509602Canada6114.6%7.6%5614.7%7.7%489513.5%6.6%102635CEMEA21229.7%27.2%3738.8%36.1%56917528.0%25.5%998241239LAC24922.4%16.7%8930.0%23.8%1,90516018.5%13.1%929372403US 6269.1%9.1%5179.1%9.1%10,4871099.0%9.0%907509655Visa Inc.1,55017.4%13.7%97117.0%13.4%16,33757918.0%14.2%3,4701,6571,934Visa Credit ProgramsUS$24111.1%11.1%$22910.3%10.3%2,664$1326.5%26.5%18201261Rest of World42124.4%15.6%36925.0%15.9%4,2195120.0%13.4%182453513Visa Inc.66219.2%13.9%59819.0%13.7%6,8836421.2%15.8%200654774Visa Debit ProgramsUS$3857.9%7.9%$2888.2%8.2%7,822$977.0%7.0%889308394Rest of World50423.2%18.2%8539.6%32.2%1,63241920.4%15.7%2,381695766Visa Inc.88816.1%13.5%37314.0%12.8%9,45451517.6%14.0%3,2701,0031,160For the 3 Months Ended June 30, 2011TotalVolume($ billions)Growth(NominalUSD)Growth(ConstantUSD)PaymentsVolume($ billions)Growth(NominalUSD)Growth(ConstantUSD)PaymentsTransactions (millions)CashVolume($ billions)Growth(NominalUSD)Growth(Constant USD)CashTransactions (millions)Accounts(millions)Cards(millions)All Visa Credit & DebitAsia Pacific$37922.7%13.5%$24825.5%15.1%2,758$13117.6%10.7%599495588Canada6013.6%7.7%5514.0%8.0%47359.9%4.2%102534CEMEA20432.3%26.9%3541.6%35.7%53217030.5%25.3%992230232LAC24431.8%22.9%8537.1%27.7%1,81715929.1%20.5%912365398US 62410.0%10.0%51810.4%10.4%10,4171068.2%8.2%902499654Visa Inc.1,51219.1%14.6%94117.4%13.4%15,99757022.2%16.6%3,4151,6151,906Visa Credit ProgramsUS$2359.5%9.5%$2249.9%9.9%2,570$112.1%2.1%17199258Rest of World40025.0%15.6%34825.3%15.8%4,0425222.6%14.4%179448509Visa Inc.63418.8%13.2%57218.8%13.3%6,6126218.6%12.0%196647766Visa Debit ProgramsUS$38910.3%10.3%$29410.8%10.8%7,847$958.9%8.9%885301397Rest of World48827.8%20.6%7536.6%27.4%1,53841326.3%19.5%2,334667744Visa Inc.87719.4%15.6%36915.2%13.6%9,38550822.6%17.2%3,2199681,140For the 12 Months Ended June 30, 2012TotalVolume($ billions)Growth(NominalUSD)Growth(ConstantUSD)PaymentsVolume($ billions)Growth(NominalUSD)Growth(ConstantUSD)PaymentsTransactions(millions)CashVolume($ billions)Growth(NominalUSD)Growth(ConstantUSD)CashTransactions(millions)All Visa Credit & DebitAsia Pacific$1,63115.0%12.6%$1,09417.5%14.0%11,698$53710.2%9.9%2,534Canada2397.1%7.5%2197.3%7.7%1,964204.4%4.9%42CEMEA87620.1%24.6%16132.5%38.4%2,62371517.6%21.9%4,162LAC1,00911.8%17.8%36015.4%21.8%8,0566489.9%15.7%3,844US 2,4955.5%5.5%2,0665.3%5.3%41,2474296.3%6.3%3,527Visa Inc.6,25010.8%11.7%3,90010.5%10.3%65,5882,35011.5%14.1%14,109Visa Credit ProgramsUS$98010.4%10.4%$93510.4%10.4%10,952$4510.3%10.3%64Rest of World1,68813.8%12.9%1,49115.2%14.0%17,2391974.4%5.4%744Visa Inc.2,66812.6%12.0%2,42613.3%12.6%28,1922425.5%6.3%808Visa Debit ProgramsUS$1,5152.5%2.5%$1,1311.4%1.4%30,295$3845.9%5.9%3,463Rest of World2,06715.4%19.1%34325.1%28.6%7,1021,72413.7%17.4%9,838Visa Inc.3,5829.6%11.5%1,4746.1%6.6%37,3962,10812.2%15.1%13,302For the 12 Months Ended June 30, 2011TotalVolume($ billions)Growth(NominalUSD)Growth(ConstantUSD)PaymentsVolume($ billions)Growth(NominalUSD)Growth(ConstantUSD)Payments Transactions(millions)CashVolume($ billions)Growth (NominalUSD)Growth (ConstantUSD)CashTransactions(millions)Accounts (millions)Cards(millions)All Visa Credit & DebitAsia Pacific$1,41917.8%11.4%$93120.6%13.6%10,836$48812.7%7.3%2,363495588Canada22412.1%7.5%20411.8%7.1%1,8102016.1%11.3%382534CEMEA72926.8%25.4%12233.9%31.7%1,91160725.4%24.2%3,714230232LAC90225.6%20.6%31230.0%25.8%7,01359023.4%18.0%3,558365398US 2,36511.2%11.2%1,96211.9%11.9%39,7634047.8%7.8%3,470499654Visa Inc.5,63916.9%14.1%3,53116.2%13.7%61,3322,10818.0%14.7%13,1431,6151,906Visa Credit ProgramsUS$8876.4%6.4%$8468.3%8.3%9,819$41-21.3%-21.3%65199258Rest of World1,48319.8%13.8%1,29519.8%13.7%15,71018820.2%14.7%665448509Visa Inc.2,37014.4%10.9%2,14115.0%11.5%25,5292299.9%6.0%730647766Visa Debit ProgramsUS$1,47814.3%14.3%$1,11514.9%14.9%29,943$36312.4%12.4%3,405301397Rest of World1,79122.7%18.5%27534.0%28.7%5,8591,51620.8%16.8%9,008667744Visa Inc.3,26918.7%16.5%1,39018.2%17.3%35,8031,87919.1%15.9%12,4139681,140FootnoteThe 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. 2. Cross Border VolumeThe 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. PeriodGrowth(NominalUSD)Growth(ConstantUSD)3 Months EndedJun 30, 201210%14%Mar 31, 201215%16%Dec 31, 201112%13%Sep 30, 201119%15%Jun 30, 201120%14%12 Months EndedJun 30, 201214%15%Jun 30, 201117%14%3. Visa Processed TransactionsThe 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.PeriodProcessed Transactions(millions)Growth3 Months EndedJun 30, 201213,1131%Mar 31, 201213,0388%Dec 31, 201113,6008%Sep 30, 201113,2639%Jun 30, 201113,03811%12 Months EndedJun 30, 201253,0147%Jun 30, 201149,77814%4. CyberSource TransactionsThe table below represents billable transactions processed on Visa Inc.'s CyberSource network.PeriodBillable Transactions(millions)Growth3 Months EndedJun 30, 20121,30325%Mar 31, 20121,28126%Dec 31, 20111,23525%Sep 30, 20111,08831%Jun 30, 20111,04538%12 Months EndedJun 30, 20124,90727%Jun 30, 20113,87938% SOURCE Visa Inc.