Press release from PR Newswire
Visa Inc. Posts Strong Fiscal Fourth Quarter and Full-Year 2012 Adjusted Earnings Results and Announces New $1.5 billion Share Repurchase Program
Wednesday, October 31, 2012
Visa Inc. Posts Strong Fiscal Fourth Quarter and Full-Year 2012 Adjusted Earnings Results and Announces New $1.5 billion Share Repurchase Program16:05 EDT Wednesday, October 31, 2012FOSTER CITY, Calif., Oct. 31, 2012 /PRNewswire/ -- Adjusted quarterly net income of $1 billion or $1.54 per diluted class A common share, excluding special item Adjusted full-year 2012 net income of $4.2 billion or $6.20 per diluted class A common share, excluding special items GAAP quarterly net income of $1.7 billion or $2.47 per diluted class A common share, including special item Full-year 2012 GAAP net income, including special items, was $2.1 billion or $3.16 per diluted class A common share The Company authorizes a new $1.5 billion repurchase program and increases quarterly dividend payment by 50%Visa Inc. (NYSE: V) today announced financial results for the Company's fiscal fourth quarter and full-year 2012. Adjusted quarterly and full-year net income per class A common share outstanding are non-GAAP financial measures that are reconciled to their most directly comparable GAAP measures in the accompanying financial tables. On an adjusted basis, the Company's financial results reflect the impact of special items that are either non-recurring, have no cash impact or are related to amounts covered by the retrospective responsibility plan. GAAP net income in the fiscal fourth quarter of 2012 was $1.7 billion or diluted class A common stock earnings per share of $2.47. Adjusted net income in the fiscal fourth quarter was $1.0 billion or diluted class A common stock earnings per share of $1.54, excluding a special item related to the reversal of previously recorded tax reserves which increased net income by $627 million. The weighted-average number of diluted class A common shares outstanding in the fiscal fourth quarter was 672 million. GAAP net income for the full-year 2012 was $2.1 billion, which included several special items: a one-time non-cash deferred tax adjustment of $208 million during the fiscal second quarter; a covered litigation provision of $4.1 billion and related tax benefits during the fiscal third quarter; and the reversal of previously recorded tax reserves which totaled $627 million during the fiscal fourth quarter. Diluted class A common stock earnings per share was $3.16. On an adjusted basis, excluding the aforementioned special items, net income for the full-year 2012 was $4.2 billion, an increase of 19% over the prior year. Adjusted diluted class A common stock earnings per share was $6.20, an increase of 24% over the prior year. The weighted-average number of diluted class A common shares outstanding for the full year was 678 million.GAAP net operating revenue in the fiscal fourth quarter of 2012 was $2.7 billion, an increase of 15% over the prior year. Currency fluctuations contributed a negative 1 percentage point of growth towards quarterly net operating revenues.GAAP net operating revenue for the full-year of 2012 was $10.4 billion, an increase of 13% over the prior year and driven by double-digit revenue growth contributions from service, data processing and international transaction revenues. There was no significant impact on full-year results related to the strengthening or weakening of the U.S. dollar over the prior year."Visa delivered strong financial performance for the fourth quarter and full year, a result of our focus on growing our core business, accelerating expansion of our business outside the U.S and investing in next-generation technologies that will define the future of payments," said Joseph Saunders, Chairman and Chief Executive Officer of Visa Inc. "With our solid record of growth and sound strategy, Visa has a strong foundation for continued long-term growth as technology-enabled change continues to shape our global market. We will continue to invest in new technologies that will help our financial institution clients expand their businesses, add incremental value to the merchant community, and forge new revenue opportunities for both Visa and our partners. We see extraordinary opportunity for growth in the payments industry." Fiscal Fourth Quarter 2012 Financial Highlights:Payments volume growth, on a constant dollar basis, for the three months ended June 30, 2012, on which fiscal fourth quarter service revenue is recognized, was a positive 6% over the prior year at $978 billion.Payments volume growth, on a constant dollar basis, for the three months ended September 30, 2012, was a positive 6% over the prior year at $1 trillion.Cross-border volume growth, on a constant dollar basis, was a positive 10% for the three months ended September 30, 2012.Total processed transactions, which represent transactions processed by VisaNet, for the three months ended September 30, 2012, were 14 billion, a positive 2% increase over the prior year. For the fiscal fourth quarter 2012, service revenues were $1.3 billion, an increase of 14% 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 15% over the prior year to $1.1 billion. International transaction revenues, which are driven by cross-border volume, grew 5% over the prior year to $796 million. Other revenues, which include the Visa Europe licensing fee, were $172 million, flat compared to the prior year. Client incentives, which are a contra revenue item, were $563 million and represent 17% of gross revenues.Total operating expenses on a GAAP basis were $1.2 billion for the quarter, an 18% increase over the prior year.Cash, cash equivalents, restricted cash, and available-for-sale investment securities were $10.5 billion at September 30, 2012. Fiscal Full-Year 2012 Financial Highlights:For the fiscal full-year 2012, service revenues were $4.9 billion, an increase of 14% over the prior year. Data processing revenues rose 14% over the prior year to $4.0 billion. International transaction revenues, which are driven by cross-border volume, grew 13% over the prior year to $3.0 billion. Other revenues, which include the Visa Europe licensing fee, were $704 million, a 7% increase over the prior year. Client incentives, which are a contra revenue item, were $2.2 billion and represent 17% of gross revenues.Total processed transactions, which represent transactions processed by VisaNet for the 12 months ended September 30, 2012, totaled 53 billion, a 5% increase over the prior year.Excluding the litigation provision recorded in the fiscal third quarter of 2012, total adjusted operating expenses increased 12% over the prior year to $4.2 billion.Excluding special items, the Company's adjusted tax rate was 32.9% for the twelve months ended September 30, 2012.Notable Events:Total as-converted class A common stock was reduced by 2.5 million shares during the three months ended September 30, 2012, which was funded from $324 million of our operating cash on hand. Of the $324 million, $174 million was used to repurchase class A common stock in the open market. In addition, we deposited $150 million from our operating cash into the litigation escrow account previously established under the retrospective responsibility plan. This deposit has the same economic effect on earnings per share as repurchasing the Company's class A common stock as it reduces the as-converted class B common stock share count. As announced on October 24, 2012, the Board of Directors declared a quarterly dividend in the aggregate amount of $0.33 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 December 4, 2012, to all holders of record of the Company's class A, class B and class C common stock as of November 16, 2012.The Board of Directors has authorized a new $1.5 billion class A share repurchase program. The authorization will be in place through October 2013, and is subject to further change at the discretion of the Board.Financial Outlook: Visa Inc. provides its financial outlook for the following metrics for fiscal 2013:Annual net revenue growth in the low double digits; Client incentives as a percent of gross revenues: 18% to 18.5% range; Marketing expenses: Under $1 billion; Adjusted annual operating margin of about 60%; Tax rate: 30% to 32% range; Adjusted annual diluted class A common stock earnings per share growth: High teens; Capital expenditures: $425 million to $475 million range; and Annual free cash flow about $5 billion.Fiscal Fourth Quarter and Full-Year 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 electronic payments. We operate one of the world's most advanced processing networks?VisaNet?that is capable of handling more than 24,000 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," "expect," "will," "see," and similar references to the future. Examples of such forward-looking statements include, but are not limited to, statements we make about our revenue opportunities 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 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 Dodd-Frank Act; rules under the Dodd-Frank Act expanding issuers' and merchants' choice among debit payment networks; increased regulation outside the United States and in other product categories; increased government support of national payment networks outside the United States; and rules about consumer privacy and data use and security;developments in current or future litigation and government enforcement, including those affecting interchange reimbursement fees, antitrust and tax disputes; economic factors, such as: an increase or spread of the current European crisis involving sovereign debt and the euro; the so-called "fiscal cliff" in the United States: the combination of expiring tax cuts and mandatory reductions in federal spending at the end of 2012; 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 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, 650-432-7644, firstname.lastname@example.org Media Relations: Will Valentine, 650-432-2990, email@example.com VISA INC.CONSOLIDATED BALANCE SHEETS(UNAUDITED)September 30,2012September 30,2011(in millions, except par value data)AssetsCash and cash equivalents$ 2,074$ 2,127Restricted cash?litigation escrow4,4322,857Investment securities Trading6657 Available-for-sale 6771,214Settlement receivable454412Accounts receivable723560Customer collateral823931Current portion of client incentives209278Deferred tax assets2,027489Prepaid expenses and other current assets 301265Total current assets11,7869,190Investment securities, available-for-sale 3,283711Client incentives5885Property, equipment and technology, net 1,6341,541Other assets 151129Intangible assets, net11,42011,436Goodwill11,68111,668Total assets$ 40,013$ 34,760LiabilitiesAccounts payable$ 152$ 169Settlement payable719449Customer collateral 823931Accrued compensation and benefits460387Client incentives830528Accrued liabilities 584562Accrued litigation 4,386425Total current liabilities7,9543,451Deferred tax liabilities4,0584,205Other liabilities371667Total liabilities12,3838,323EquityPreferred stock, $0.0001 par value, 25 shares authorized and none issued$ -$ -Class A common stock, $0.0001 par value, 2,001,622 shares authorized, 535 and 520 shares issued and outstanding at September 30, 2012, and September 30,2011, respectively--Class B common stock, $0.0001 par value, 622 shares authorized, 245 shares issued and outstanding at September 30, 2012 and September 30, 2011 --Class C common stock, $0.0001 par value, 1,097 shares authorized, 31 and 47 shares issued and outstanding at September 30, 2012 and September 30, 2011, respectively--Additional paid-in capital19,99219,907Accumulated income7,8096,706Accumulated other comprehensive income (loss), net Investment securities, available-for-sale3- Defined benefit pension and other postretirement plans(186)(186) Derivative instruments classified as cash flow hedges1318 Foreign currency translation adjustments(1)(8)Total accumulated other comprehensive loss, net(171)(176)Total equity27,63026,437Total liabilities and equity$ 40,013$ 34,760 VISA INC.CONSOLIDATED STATEMENTS OF OPERATIONS(UNAUDITED)Three Months EndedSeptember 30,Twelve Months EndedSeptember 30,2012201120122011(in millions, except per share data)Operating RevenuesService revenues$ 1,264$ 1,105$ 4,872$ 4,261Data processing revenues1,0629253,9753,478International transaction revenues7967583,0252,674Other revenues172171704655Client incentives(563)(576)(2,155)(1,880)Total operating revenues2,7312,38310,4219,188Operating ExpensesPersonnel4713881,7261,459Network and processing111106414357Marketing271239873870Professional fees134115385337Depreciation and amortization8977333288General and administrative13195451414Litigation provision214,1007Total operating expenses1,2091,0218,2823,732Operating income1,5221,3622,1395,456Other Income (Expense)Interest income (expense)57(13)29(32)Investment income5136108Other443124Total other income (expense)66(8)68200Income before income taxes1,5881,3542,2075,656Income tax (benefit) provision (74)476652,010Net income including non-controlling interest1,6628782,1423,646Loss attributable to non-controlling interest-224Net income attributable to Visa Inc.$ 1,662$ 880$ 2,144$ 3,650Basic earnings per share Class A common stock$ 2.48$ 1.28$ 3.17$ 5.18 Class B common stock$ 1.05$ 0.62$ 1.40$ 2.59 Class C common stock$ 2.48$ 1.28$ 3.17$ 5.18Basic weighted-average shares outstanding Class A common stock528518524509 Class B common stock245245245245 Class C common stock35494170Diluted earnings per share Class A common stock$ 2.47$ 1.27$ 3.16$ 5.16 Class B common stock$ 1.04$ 0.62$ 1.39$ 2.58 Class C common stock$ 2.47$ 1.27$ 3.16$ 5.16Diluted weighted-average shares outstanding Class A common stock672692678707 Class B common stock245245245245 Class C common stock35494170 VISA INC.CONSOLIDATED STATEMENTS OF CASH FLOWS(UNAUDITED)For the Years Ended September 30,201220112010(in millions)Operating ActivitiesNet income including non-controlling interest$ 2,142$ 3,646$ 2,964Adjustments to reconcile net income including non-controlling interest to net cash provided by (used in) operating activities:Amortization of client incentives2,1551,8801,560Fair value adjustment for the Visa Europe put option-(122)(79)Share-based compensation147154131Excess tax benefit for share-based compensation(71)(18)(14)Depreciation and amortization of intangible assets and property, equipment and technology333288265Litigation provision and accretion4,10118(18)Deferred income taxes(1,690)164249Other(8)(104)(32)Change in operating assets and liabilities:Settlement receivable(42)(4)203Accounts receivable(161)(79)(7)Client incentives(1,757)(1,857)(1,386)Other assets(26)2(42)Accounts payable(17)29(21)Settlement payable27036(245)Accrued and other liabilities(227)129165Accrued litigation(140)(290)(1,002)Net cash provided by operating activities5,0093,8722,691Investing ActivitiesPurchases of property, equipment, technology and intangible assets(376)(353)(241)Proceeds from disposal of property, equipment and technology2-3Investment securities, available-for-sale:Purchases(4,140)(1,910)(11)Proceeds from sales and maturities2,09312967Purchases of / contributions to other investments(12)(13)(17)Proceeds / distributions from other investments2211611Acquisitions, net of cash received of $17, $22 and $147, respectively (3)(268)(1,805)Distribution from money market investment--89Net cash used in investing activities(2,414)(2,299)(1,904)Financing ActivitiesRepurchase of class A common stock(710)(2,024)(1,000)Dividends paid(595)(423)(368)Deposits into litigation escrow account?retrospective responsibility plan(1,715)(1,200)(500)Payments from litigation escrow account?retrospective responsibility plan140280280Cash proceeds from exercise of stock options1749956Excess tax benefit for share-based compensation711814Principal payments on capital lease obligations(6)(10)(12)Payments for earn-out related to PlaySpan acquisition(14)--Principal payments on debt-(44)(12)Net cash used in financing activities(2,655)(3,304)(1,542)Effect of exchange rate changes on cash and cash equivalents7(9)5Decrease in cash and cash equivalents(53)(1,740)(750)Cash and cash equivalents at beginning of year2,1273,8674,617Cash and cash equivalents at end of year$ 2,074$ 2,127$ 3,867Supplemental Disclosure of Cash Flow InformationIncome taxes paid, net of refunds$ 2,057$ 1,731$ 1,291Amounts included in accounts payable and accrued and other liabilities related to purchases of property, equipment, technology and intangible assets$ 67$ 36$ 31Interest payments on debt$ -$ 3$ 4 VISA INC.FISCAL 2012 AND 2011 QUARTERLY RESULTS OF OPERATIONS(UNAUDITED)Fiscal 2012 Quarter EndedFiscal 2011 Quarter EndedSeptember 30,2012June 30,2012March 31,2012December 31,2011September 30,2011(in millions)Operating RevenuesService revenues$ 1,264$ 1,216$ 1,241$ 1,151$ 1,105Data processing revenues1,0621,040922951925International transaction revenues796748733748758Other revenues172175179178171Client incentives(563)(614)(497)(481)(576)Total operating revenues2,7312,5652,5782,5472,383Operating ExpensesPersonnel471435431389388Network and processing11110210398106Marketing271242170190239Professional fees134998270115Depreciation and amortization8984808077General and administrative13111210610295Litigation provision24,098--1Total operating expenses1,2095,1729729291,021Operating income (loss)1,522(2,607)1,6061,6181,362Other Income (Expense)Interest income (expense)57(11)(7)(10)(13)Investment income5129101Other4(1)1(1)4Total other income (expense)66-3(1)(8)Income (loss) before income taxes1,588(2,607)1,6091,6171,354Income tax (benefit) provision(74)(768)317590476Net income (loss) including non-controlling interest1,662(1,839)1,2921,027878Loss attributable to non-controlling interest---22Net income (loss) attributable to Visa Inc.$ 1,662$ (1,839)$ 1,292$ 1,029$ 880 VISA INC.Reconciliation of Non-GAAP Financial Results?Full YearUS$ in millions, except margin ratio and per share dataOur financial results for fiscal 2012 and 2011 were impacted by several special items that we believe are not indicative of our financial performance in the current or future years, as they are either non-recurring, have no cash impact or are related to amounts covered by the retrospective responsibility plan. As such, we believe the presentation of adjusted financial results excluding the following amounts provides a clearer understanding of our operating performance for the periods presented.-Reversal of tax reserves. During the fourth quarter of fiscal 2012, we reversed all previously recorded tax reserves and accrued interest associated with uncertainties related to the deductibility of covered litigation expense recorded in fiscal 2007 through the third quarter of fiscal 2012. This increased our net income for the fourth quarter of fiscal 2012 by $627 million. The reversed tax reserves included $301 million originally recorded in the third quarter of fiscal 2012; therefore, the full-year impact of this adjustment was only $326 million.-Litigation provision. During the third quarter of fiscal 2012, we recorded a litigation provision of $4.1 billion and related tax benefits associated with the interchange Multidistrict Litigation Proceedings, which are covered by the retrospective responsibility plan. Monetary liabilities from settlements of, or judgments in, the covered litigation will be paid from the litigation escrow account.-Deferred tax adjustment. During the second quarter of fiscal 2012, we benefited from a one-time non-cash adjustment of $208 million related to the remeasurement of our net deferred tax liabilities attributable to changes in the California state apportionment rules.-Revaluation of Visa Europe put option. During the third quarter of fiscal 2011, we recorded a decrease of $122 million in the fair value of the Visa Europe put option, which resulted in the recognition of non-cash, non-operating other income. This amount is not subject to income tax and therefore had no impact on our reported income tax provision.The following table presents our adjusted financial results for the years ended September 30, 2012 and 2011(1).Twelve months ended September 30, Operating ExpensesOperating Margin(2)Net Income Attributable to Visa Inc.Diluted Earnings Per Share20122011201220112012201120122011As reported$ 8,282$ 3,73221%59%$ 2,144$ 3,650$ 3.16$ 5.16Reversal of tax reserves----(326)-(0.48)-Litigation provision(4,098)-39%-2,593-3.82-Impact of deferred tax adjustment----(208)-(0.31)-Revaluation of Visa Europe put option-----(122)-(0.17)Adjusted$ 4,184$ 3,73260%59%$ 4,203$ 3,528$ 6.20$ 4.99Diluted weighted-average shares outstanding (as reported)678707 (1)Figures in the table may not recalculate exactly due to rounding. Diluted earnings per share figures are calculated based on whole numbers, not the rounded numbers presented. (2)Operating margin is calculated as operating income divided by total operating revenues. VISA INC.Reconciliation of Non-GAAP Financial Results?Effective Tax RateUS$ in millions, except effective tax rateOur financial results for fiscal 2012 reflect the impact of several special items that we believe are not indicative of our financial performance in the current or future years, as they are either non-recurring, have no cash impact or are related to amounts covered by the retrospective responsibility plan. As such, we have presented our adjusted effective income tax rate in the table below, which we believe provides a clearer understanding of our operating performance for the fiscal year. Our adjusted effective income tax rate for fiscal 2012 excludes: the reversal of previously recorded tax reserves and accrued interest associated with uncertainties related to the deductibility of covered litigation expense; additional covered litigation provision recorded; and a one-time, non-cash benefit from the remeasurement of existing net deferred tax liabilities attributable to changes in the California state apportionment rules.Fiscal 2012Income Before Income TaxesIncome Tax ProvisionEffectiveincome tax rateAs reported$ 2,207$ 653%Reversal of tax reserves(43)283Litigation provision4,0981,505Remeasurement of net deferred tax liabilities-208Adjusted$ 6,262$ 2,06133% Operational Performance DataThe tables below provide information regarding the available operational results for the 3 months ended September 30, 2012, as well as the prior four quarterly reporting periods and the 12 months ended September 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 September 30, 2012Total 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 & DebitAsia Pacific$4276.1%8.6%$2906.4%8.1%3,126$1375.5%9.7%658Canada622.0%3.3%572.0%3.4%52251.3%2.6%11CEMEA23812.0%19.0%4726.4%34.9%8021918.9%15.6%1,073LAC240-3.7%10.2%934.6%21.1%2,180147-8.3%4.2%951US 6300.7%0.7%5210.8%0.8%10,3231090.3%0.3%885Visa Inc.1,5973.0%6.7%1,0083.8%5.9%16,9535891.7%8.2%3,579Visa Credit ProgramsUS$2618.1%8.1%$2509.2%9.2%2,967$11-10.3%-10.3%16Rest of World4425.1%9.0%3936.3%10.2%4,61449-3.8%0.2%192Visa Inc.7036.2%8.7%6427.4%9.8%7,58161-5.1%-2.0%208Visa Debit ProgramsUS$369-4.0%-4.0%$271-5.9%-5.9%7,356$981.8%1.8%869Rest of World5244.1%12.8%9410.8%19.6%2,0164302.8%11.4%2,502Visa Inc.8940.6%5.2%365-2.1%-0.4%9,3725282.6%9.5%3,371For the 3 Months Ended June 30, 2012Total Volume ($ 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 & DebitAsia Pacific$4138.8%11.2%$27711.5%13.0%3,001$1363.6%7.6%651537645Canada611.8%6.3%561.9%6.4%51350.8%5.2%112533CEMEA23414.4%23.4%4528.4%39.2%75118911.5%20.2%1,088256258LAC244-0.3%15.4%883.2%19.9%2,055155-2.1%13.0%961385415US 619-0.7%-0.7%512-1.1%-1.1%10,0021071.6%1.6%874529682Visa Inc.1,5703.9%8.1%9783.9%6.2%16,3235924.0%11.5%3,5851,7312,032Visa Credit ProgramsUS$2569.2%9.2%$2469.7%9.7%2,880$11-0.5%-0.5%15209270Rest of World4266.7%11.2%3788.5%12.9%4,43749-5.6%0.0%192451511Visa Inc.6837.6%10.5%6239.0%11.6%7,31759-4.7%-0.1%207660781Visa Debit ProgramsUS$363-6.6%-6.6%$267-9.4%-9.4%7,123$961.8%1.8%859320412Rest of World5257.5%17.7%8816.9%28.3%1,8834375.8%15.8%2,519752839Visa Inc.8881.2%6.4%355-4.0%-2.2%9,0065335.0%13.0%3,3781,0711,251For the 3 Months Ended March 31, 2012Total Volume ($ 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 & DebitAsia Pacific$40816.0%14.2%$26916.6%14.0%2,874$13914.7%14.8%637530631Canada566.8%8.8%516.9%8.9%46355.6%7.5%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 6157.0%7.0%5086.5%6.5%10,1171089.3%9.3%880536690Visa Inc.1,54111.8%12.9%95811.1%11.2%16,13558413.0%15.9%3,4951,7312,024Visa 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%6,828571.6%2.9%197658778Visa Debit ProgramsUS$3824.2%4.2%$2842.4%2.4%7,517$979.7%9.7%865330425Rest of World51517.1%21.0%8526.0%29.5%1,79042915.5%19.4%2,433742820Visa Inc.89711.2%13.2%3707.0%7.6%9,30752714.4%17.5%3,2991,0731,245For the 3 Months Ended December 31, 2011Total Volume ($ 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 & DebitAsia Pacific$40913.2%11.4%$27615.0%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%10,6091068.2%8.2%879531683Visa Inc.1,58811.3%12.4%99310.6%10.6%16,76859512.4%15.6%3,5741,7011,990Visa 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$3876.0%6.0%$2925.4%5.4%7,800$957.9%7.9%863328420Rest of World52315.1%19.3%8520.3%24.4%1,79343814.1%18.4%2,506714791Visa Inc.91011.0%13.3%3778.4%9.1%9,59453213.0%16.4%3,3691,0421,211For the 3 Months Ended September 30, 2011Total Volume ($ 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 & DebitAsia Pacific$40223.1%14.1%$27228.2%17.6%2,888$13013.6%7.3%626509602Canada6114.6%7.6%5614.7%7.7%489513.5%6.6%102635CEMEA21229.7%27.2%3738.8%36.2%56917528.0%25.4%998241239LAC24922.4%16.8%8930.0%24.0%1,90516018.5%13.1%929372403US 6269.1%9.1%5179.1%9.1%10,4881099.2%9.2%907509655Visa Inc.1,55017.4%13.6%97117.0%13.3%16,33857918.1%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%15.5%36925.0%15.8%4,2195120.0%13.0%182453513Visa Inc.66219.2%13.8%59818.9%13.6%6,8836421.2%15.6%200654774Visa Debit ProgramsUS$3848.0%8.0%$2888.2%8.2%7,823$967.3%7.3%889308394Rest of World50423.2%18.5%8539.6%33.1%1,63241920.4%15.8%2,381695766Visa Inc.88816.1%13.5%37314.0%12.7%9,45551517.7%14.0%3,2701,0031,160For the 12 Months Ended September 30, 2012Total Volume ($ 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 & DebitAsia Pacific$1,65610.8%11.3%$1,11212.2%11.7%11,950$5458.2%10.6%2,567Canada2403.6%5.9%2193.8%6.1%1,998201.3%3.6%43CEMEA90316.1%22.8%17129.1%37.5%2,86173313.5%19.8%4,242LAC9975.2%15.9%3659.6%21.1%8,3206332.9%13.1%3,863US 2,5003.5%3.5%2,0703.2%3.2%41,0504304.7%4.7%3,518Visa Inc.6,2967.3%10.0%3,9367.2%8.4%66,1792,3607.5%12.7%14,233Visa Credit ProgramsUS$9999.7%9.7%$95510.1%10.1%11,254$440.6%0.6%62Rest of World1,7109.2%11.3%1,51410.6%12.5%17,646196-0.4%2.9%755Visa Inc.2,7099.4%10.7%2,46910.4%11.6%28,900240-0.2%2.4%817Visa Debit ProgramsUS$1,501-0.3%-0.3%$1,114-2.0%-2.0%29,797$3865.2%5.2%3,456Rest of World2,08610.7%17.6%35218.0%25.2%7,4831,7349.3%16.2%9,960Visa Inc.3,5875.8%9.4%1,4672.2%3.4%37,2792,1208.5%14.0%13,416For the 12 Months Ended September 30, 2011Total Volume ($ 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 & DebitAsia Pacific$1,49419.5%12.0%$99123.6%15.0%11,041$50312.2%6.5%2,394509602Canada23113.2%7.6%21112.9%7.3%1,8492016.4%10.6%392635CEMEA77828.6%26.3%13236.9%33.9%2,06264627.0%24.9%3,852241239LAC94825.5%19.7%33331.3%25.8%7,28461522.5%16.7%3,614372403US 2,41610.4%10.4%2,00510.9%10.9%40,4894118.3%8.3%3,500509655Visa Inc.5,86717.3%13.9%3,67216.7%13.5%62,7242,19518.3%14.5%13,4001,6571,934Visa Credit ProgramsUS$9118.4%8.4%$8689.3%9.3%10,052$43-6.0%-6.0%65201261Rest of World1,56622.2%14.8%1,36922.3%14.8%16,09219721.3%15.0%691453513Visa Inc.2,47716.7%12.3%2,23616.9%12.5%26,14524115.2%10.4%756654774Visa Debit ProgramsUS$1,50511.7%11.7%$1,13712.1%12.1%30,437$36710.3%10.3%3,434308394Rest of World1,88522.9%18.2%29935.6%29.3%6,1431,58720.8%16.3%9,209695766Visa Inc.3,39017.7%15.1%1,43616.3%15.1%36,5801,95418.7%15.0%12,6441,0031,160 FootnoteThe 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. 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 (Nominal USD)Growth (Constant USD)3 Months EndedSep 30, 20127%10%Jun 30, 201210%14%Mar 31, 201215%16%Dec 31, 201112%13%Sep 30, 201119%15%12 Months EndedSep 30, 201211%13%Sep 30, 201118%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 EndedSep 30, 201213,5732%Jun 30, 201213,1131%Mar 31, 201213,0388%Dec 31, 201113,6008%Sep 30, 201113,2639%12 Months EndedSep 30, 201253,3245%Sep 30, 201150,92212% 4. CyberSource TransactionsThe table below represents billable transactions processed on Visa Inc.'s CyberSource network.PeriodBillable Transactions (millions)Growth3 Months EndedSep 30, 20121,36325%Jun 30, 20121,30325%Mar 31, 20121,28126%Dec 31, 20111,23525%Sep 30, 20111,08831%12 Months EndedSep 30, 20125,18225%Sep 30, 20114,13736% SOURCE Visa Inc.