Press release from PR Newswire
Visa Inc. Reports Fiscal First Quarter 2013 Net Income of $1.3 billion or $1.93 per diluted share and Authorizes New $1.75 Billion Share Repurchase Program
Wednesday, February 06, 2013
Visa Inc. Reports Fiscal First Quarter 2013 Net Income of $1.3 billion or $1.93 per diluted share and Authorizes New $1.75 Billion Share Repurchase Program16:05 EST Wednesday, February 06, 2013FOSTER CITY, Calif., Feb. 6, 2013 /PRNewswire/ --Broad-based net revenue growth of 12% Earnings per share of $1.93 includes a catch-up tax benefit effect of approximately $0.11 per share New share repurchase authorization on top of remainder at December 31, 2012 brings outstanding authorization to about $2.9 billionVisa Inc. (NYSE: V) today announced financial results for the Company's fiscal first quarter 2013 ended December 31, 2012. Net income for the quarter was $1.3 billion, an increase of 26% over the prior year, or $1.93 per share, an increase of 30% over the prior year. These results included a catch-up tax benefit effect resulting from new guidance on apportionment rules from the State of California, are consistent with our full-year tax and earnings per share guidance, and represent about 11 cents of earnings per share for the quarter. All references to earnings per share assume fully diluted class A share count unless otherwise noted.Net operating revenue in the first quarter of fiscal 2013 was $2.8 billion, an increase of 12% over the prior year, driven by strong 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 again delivered a strong quarter of revenue and earnings driven by success across our global franchise," said Charlie Scharf, Chief Executive Officer. "Our results include significant continued investments in our core business, accelerating international expansion and the deployment of next-generation payment solutions for the benefit of our financial institution and merchant partners." Added Scharf, "We have been committed to using our capital wisely and that includes returning capital to stockholders through dividends and share repurchases. The board's decision to increase Visa's repurchase authorization continues that commitment, supported by confidence we have in our future."Fiscal First Quarter 2013 Financial Highlights:Payments volume growth, on a constant dollar basis, for the three months ended September 30, 2012, on which fiscal first quarter service revenue is recognized, was 6% over the prior year at $1.0 trillion.Payments volume growth, on a constant dollar basis, for the three months ended December 31, 2012, was 9% over the prior year at $1.1 trillion.Cross-border volume growth, on a constant dollar basis, was 11% for the three months ended December 31, 2012.Total processed transactions, which represent transactions processed by VisaNet, for the three months ended December 31, 2012, were 14.2 billion, a 4% increase over the prior year. Fiscal first quarter 2013 service revenues were $1.3 billion, an increase of 13% versus the prior year, and are recognized based on payments volume in the prior quarter. All other revenue categories are recognized based on current quarter activity. Data processing revenues rose 17% over the prior year to $1.1 billion. International transaction revenues, which are driven by cross-border activity, grew 8% over the prior year to $805 million. Other revenues, which include the Visa Europe licensing fee, were $179 million, a 1% increase over the prior year. Client incentives, which are a contra revenue item, were $553 million and represent 16% of gross revenues.Total operating expenses were $1.0 billion for the quarter, a 13% increase over the prior year, primarily due to higher personnel and professional fees associated with investments in technology projects to support our growth initiatives.The effective tax rate was 28.2% for the quarter ended December 31, 2012. This rate was positively impacted by a tax benefit recognized during the quarter as a result of new guidance issued by the State of California regarding apportionment rules for years prior to fiscal 2012.Cash, cash equivalents, and available-for-sale investment securities were $6.1 billion at December 31, 2012. The weighted-average number of diluted class A common stock outstanding was 669 million.Notable Events:Under the terms of the class settlement agreement in the Multidistrict Litigation Proceedings (MDL) 1720, in December 2012, the Company paid approximately $4.0 billion from the litigation escrow account into a settlement fund established pursuant to the definitive class settlement agreement. Additionally, in October 2012, the Company made a payment of $350 million to the individual plaintiffs' settlement fund. During the three months ended December 31, 2012, the Company repurchased approximately 9 million shares of class A common stock, at an average price of $145.40 per share, using $1.3 billion of cash on hand. The Company's Board of Directors has authorized a new $1.75 billion class A share repurchase program. The authorization will be in place through January 2014, and is subject to further change at the discretion of the Board.As announced on January 30, 2013 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 March 5, 2013, to all holders of record of the Company's class A, class B and class C common stock as of February 15, 2013.On January 30, 2013, the Company held its 2013 annual meeting of stockholders during which holders of the Company's class A common stock at the close of business on December 4, 2012 voted on the four proposals enumerated in the Company's proxy statement. All of management's proposals were approved, but the single stockholder proposal failed to pass.Financial Outlook:Visa Inc. updates its financial outlook for the following metric for fiscal 2013:Annual free cash flow: About $6 billion. This increase is attributable to tax benefits to be realized during fiscal 2013 related to non-recurring litigation escrow payments of approximately $4.4 billion made during the fiscal first quarter. Visa Inc. affirms its financial outlook for the following metrics for fiscal 2013: Annual net revenue growth: Low double digits; Client incentives as a percent of gross revenues: 18% to 18.5% range; Marketing expenses: Under $1 billion; Annual operating margin: About 60%; Tax rate: 30% to 32% range; Adjusted annual diluted class A common stock earnings per share growth: High teens; and Capital expenditures: $425 million to $475 million range. Fiscal First Quarter 2013 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 Inc. 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 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 http://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," and similar references to the future. Examples of such forward-looking statements include, but are not limited to, statements we make 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 litigation and government enforcement, including: those affecting interchange reimbursement fees, antitrust and tax; and our failure to satisfy the conditions necessary to make the multidistrict litigation settlement effective;economic factors, such as: an increase or spread of the current European crisis involving sovereign debt and the euro; the failure to raise the "debt ceiling" in the United States and its repercussions; cross-border activity and currency exchange rates; material changes in our clients' performance compared to our estimates; and other global economic, political and health conditions.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 and liquidity needs 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; 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, email@example.comMedia Relations: Will Valentine, 650-432-2990, firstname.lastname@example.org VISA INC.CONSOLIDATED BALANCE SHEETS(UNAUDITED)December 31,2012September 30,2012(in millions, except par value data)AssetsCash and cash equivalents$ 1,334$ 2,074Restricted cash?litigation escrow494,432Investment securitiesTrading7466Available-for-sale1,377677Income tax receivable1,341179Settlement receivable859454Accounts receivable801723Customer collateral819823Current portion of client incentives168209Deferred tax assets3892,027Prepaid expenses and other current assets176122Total current assets7,38711,786Investment securities, available-for-sale3,4013,283Client incentives4058Property, equipment and technology, net1,6411,634Other assets306151Intangible assets, net11,40311,420Goodwill11,68111,681Total assets$ 35,859$ 40,013LiabilitiesAccounts payable$ 114$ 152Settlement payable1,072719Customer collateral819823Accrued compensation and benefits288460Client incentives871830Accrued liabilities578584Accrued litigation54,386Total current liabilities3,7477,954Deferred tax liabilities4,0574,058Other liabilities467371Total liabilities8,27112,383EquityPreferred stock, $0.0001 par value, 25 shares authorized and none issued??Class A common stock, $0.0001 par value, 2,001,622 shares authorized, 530 and 535 shares issued and outstanding at December 31, 2012, and September 30, 2012, respectively??Class B common stock, $0.0001 par value, 622 shares authorized, 245 shares issued and outstanding at December 31, 2012, and September 30, 2012 ??Class C common stock, $0.0001 par value, 1,097 shares authorized, 29 and 31 shares issued and outstanding at December 31, 2012, and September 30, 2012, respectively??Additional paid-in capital19,72819,992Accumulated income7,9977,809Accumulated other comprehensive income (loss), netInvestment securities, available-for-sale343Defined benefit pension and other postretirement plans(184)(186)Derivative instruments classified as cash flow hedges1413Foreign currency translation adjustments(1)(1)Total accumulated other comprehensive loss, net(137)(171)Total equity27,58827,630Total liabilities and equity$ 35,859$ 40,013 VISA INC.CONSOLIDATED STATEMENTS OF OPERATIONS(UNAUDITED)Three Months Ended December 31,20122011(in millions, except per share data)Operating RevenuesService revenues$ 1,300$ 1,151Data processing revenues1,115951International transaction revenues805748Other revenues179178Client incentives(553)(481)Total operating revenues2,8462,547Operating ExpensesPersonnel454389Marketing193190Network and processing11098Professional fees8870Depreciation and amortization9280General and administrative106102Litigation provision3?Total operating expenses1,046929Operating income1,8001,618Non-operating income (expense)1(1)Income before income taxes1,8011,617Income tax provision508590Net income including non-controlling interest1,2931,027Loss attributable to non-controlling interest?2Net income attributable to Visa Inc.$ 1,293$ 1,029Basic earnings per shareClass A common stock$ 1.94$ 1.50Class B common stock$ 0.82$ 0.73Class C common stock$ 1.94$ 1.50Basic weighted-average shares outstandingClass A common stock531520Class B common stock245245Class C common stock3046Diluted earnings per shareClass A common stock$ 1.93$ 1.49Class B common stock$ 0.81$ 0.73Class C common stock$ 1.93$ 1.49Diluted weighted-average shares outstandingClass A common stock669690Class B common stock245245Class C common stock3046 VISA INC.CONSOLIDATED STATEMENTS OF CASH FLOWS(UNAUDITED)Three Months Ended December 31,20122011(in millions)Operating ActivitiesNet income including non-controlling interest$ 1,293$ 1,027Adjustments to reconcile net income including non-controlling interest to net cash provided by (used in) operating activities:Amortization of client incentives553481Share-based compensation4838Excess tax benefit for share-based compensation(50)(18)Depreciation and amortization of property, equipment, technology and intangible assets9280Deferred income taxes1,62234Other12(37)Change in operating assets and liabilities:Income tax receivable(1,162)112Settlement receivable(405)(97)Accounts receivable(78)(69)Client incentives(453)(343)Other assets(228)2Accounts payable1(82)Settlement payable353(23)Accrued and other liabilities(38)251Accrued litigation(4,384)(70)Net cash (used in) provided by operating activities(2,824)1,286Investing ActivitiesPurchases of property, equipment, technology and intangible assets(100)(101)Proceeds from disposal of property, equipment and technology?2Investment securities, available-for-sale:Purchases(1,184)(933)Proceeds from sales and maturities4181,224Net distributions from other investments12Net cash (used in) provided by investing activities(865)194Financing ActivitiesRepurchase of class A common stock(1,253)(75)Dividends paid(220)(152)Deposits into litigation escrow account?retrospective responsibility plan?(1,565)Payments from litigation escrow account?retrospective responsibility plan4,38370Cash proceeds from exercise of stock options7044Restricted stock and performance shares settled in cash for taxes(64)?Excess tax benefit for share-based compensation5018Payment for earn-out related to PlaySpan acquisition(12)?Principal payments on capital lease obligations(5)(5)Net cash provided by (used in) financing activities2,949(1,665)Decrease in cash and cash equivalents(740)(185)Cash and cash equivalents at beginning of year2,0742,127Cash and cash equivalents at end of period$ 1,334$ 1,942Supplemental Disclosure of Cash Flow InformationIncome taxes paid, net of refunds$ 45$ 57Amounts included in accounts payable and accrued and other liabilities related to purchases of property, equipment, technology and intangible assets$ 33$ 42 VISA INC.FISCAL 2013 AND 2012 QUARTERLY RESULTS OF OPERATIONS(UNAUDITED)Fiscal 2013Quarter EndedFiscal 2012 Quarter EndedDecember 31,2012September 30,2012June 30,2012March 31,2012December 31,2011(in millions)Operating RevenuesService revenues$ 1,300$ 1,264$ 1,216$ 1,241$ 1,151Data processing revenues1,1151,0621,040922951International transaction revenues805796748733748Other revenues179172175179178Client incentives(553)(563)(614)(497)(481)Total operating revenues2,8462,7312,5652,5782,547Operating ExpensesPersonnel454471435431389Marketing193271242170190Network and processing11011110210398Professional fees88134998270Depreciation and amortization9289848080General and administrative106131112106102Litigation provision324,098??Total operating expenses1,0461,2095,172972929Operating income (loss)1,8001,522(2,607)1,6061,618Non-operating income (expense)166?3(1)Income (loss) before income taxes1,8011,588(2,607)1,6091,617Income tax provision (benefit)508(74)(768)317590Net income (loss) including non-controlling interest1,2931,662(1,839)1,2921,027Loss attributable to non-controlling interest????2Net income (loss) attributable to Visa Inc.$ 1,293$ 1,662$ (1,839)$ 1,292$ 1,029 Operational Performance DataThe tables below provide information regarding the available operational results for the 3 months ended December 31, 2012, as well as the prior four quarterly reporting periods and the 12 months ended December 31, 2012 and 2011, for cards carrying the Visa, Visa Electron and Interlink brands. Also included is a table with information on the number of billable transactions processed on Visa Inc.'s CyberSource network. 1. Branded Volume and 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 December 31, 2012TotalVolume($ billions)Growth(NominalUSD)Growth(ConstantUSD) PaymentsVolume($ billions)Growth(NominalUSD)Growth(ConstantUSD)Payments Transactions(millions)CashVolume($ billions)Growth(NominalUSD)Growth(ConstantUSD)CashTransactions(millions)All Visa Credit & DebitAsia Pacific$45811.9%11.5%$31313.4%12.5%3,269$1458.8%9.2%764Canada6610.3%6.5%6211.0%7.1%55952.2%-1.3%11CEMEA26520.1%21.6%5234.1%36.7%93021317.1%18.4%1,164LAC256-2.7%4.9%10411.7%21.8%2,393152-10.6%-4.2%973US 6522.7%2.7%5442.8%2.8%10,6301082.2%2.2%861Visa Inc.1,6976.9%8.1%1,0758.2%8.7%17,7816234.6%7.0%3,772Visa Credit ProgramsUS$27410.4%10.4%$26210.7%10.7%3,124$124.4%4.4%16Rest of World47811.0%11.2%42512.2%12.6%4,862532.3%1.0%201Visa Inc.75210.8%10.9%68711.6%11.9%7,985642.7%1.6%217Visa Debit ProgramsUS$378-2.3%-2.3%$282-3.6%-3.6%7,506$971.9%1.9%845Rest of World5688.6%12.3%10624.7%29.1%2,2904625.5%9.0%2,710Visa Inc.9464.0%6.0%3882.8%3.6%9,7965584.8%7.7%3,555 For the 3 Months Ended September 30, 2012TotalVolume($ 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$4296.7%9.2%$2906.5%8.2%3,115$1397.3%11.5%693558659Canada622.3%3.7%572.8%4.3%5285-3.7%-2.3%112735CEMEA23811.9%18.9%4727.0%35.6%8051918.8%15.4%1,070264265LAC239-4.1%9.8%923.5%19.8%2,165147-8.3%4.2%909395424US 6321.0%1.0%5210.8%0.8%10,3201111.7%1.7%886540698Visa Inc.1,6003.2%6.9%1,0083.8%5.9%16,9325922.3%8.7%3,5691,7832,081Visa Credit ProgramsUS$2618.2%8.2%$2509.2%9.2%2,976$11-10.1%-10.1%16213273Rest of World4414.9%8.9%3926.2%10.1%4,59349-3.9%0.1%190455515Visa Inc.7036.1%8.6%6427.3%9.7%7,57061-5.1%-2.0%206669788Visa Debit ProgramsUS$371-3.6%-3.6%$271-5.8%-5.8%7,344$993.3%3.3%870327425Rest of World5264.6%13.2%9511.4%20.2%2,0194323.2%11.8%2,493788868Visa Inc.8971.1%5.6%366-1.9%-0.2%9,3635313.2%10.1%3,3631,1141,293 For the 3 Months Ended June 30, 2012TotalVolume($ billions)Growth(NominalUSD)Growth(ConstantUSD) PaymentsVolume($ billions)Growth(NominalUSD)Growth(ConstantUSD)PaymentsTransactions(millions)CashVolume($ billions)Growth(NominalUSD)Growth(ConstantUSD)CashTransactions(millions)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%10,0071071.5%1.5%861528687Visa Inc.1,5703.9%8.1%9783.9%6.2%16,3275923.9%11.5%3,5721,7312,037Visa Credit ProgramsUS$2569.2%9.2%$2469.7%9.7%2,880$11-0.4%-0.4%15209265Rest 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%207660776Visa Debit ProgramsUS$363-6.6%-6.6%$267-9.3%-9.3%7,127$961.7%1.7%846320421Rest of World5257.5%17.7%8816.9%28.3%1,8834375.8%15.8%2,519752839Visa Inc.8881.2%6.4%355-4.0%-2.2%9,0115335.0%13.0%3,3641,0711,261 For the 3 Months Ended March 31, 2012TotalVolume($ 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%14.2%$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 6167.0%7.0%5086.5%6.5%10,1181089.3%9.3%880536680Visa Inc.1,54111.8%12.9%95811.1%11.2%16,13758413.0%15.9%3,4951,7312,013Visa 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%7,519$979.7%9.7%865330414Rest of World51517.1%21.0%8526.0%29.5%1,79042915.5%19.4%2,433742820Visa Inc.89711.2%13.2%3707.0%7.6%9,30952714.4%17.5%3,2991,0731,235 For the 3 Months Ended December 31, 2011TotalVolume($ 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%11.2%$27615.0%12.0%2,948$1339.5%9.6%621519613Canada604.1%5.6%564.7%6.2%5005-2.2%-0.8%102736CEMEA22120.1%25.1%3929.1%37.0%64318218.3%22.8%1,066241243LAC26313.0%19.0%9314.7%20.9%2,06816912.1%17.9%998383414US 6357.4%7.4%5297.3%7.3%10,6121068.2%8.2%879531670Visa Inc.1,58811.3%12.3%99310.6%10.5%16,77159512.4%15.3%3,5741,7011,977Visa Credit ProgramsUS$2489.7%9.7%$2379.7%9.7%2,808$1110.4%10.4%16203263Rest of World43012.8%12.1%37913.5%12.6%4,366517.7%8.8%189456516Visa Inc.67811.6%11.2%61612.0%11.4%7,174638.2%9.0%205659779Visa Debit ProgramsUS$3876.0%6.0%$2925.4%5.4%7,803$957.9%7.9%863328407Rest of World52315.1%19.1%8520.3%24.6%1,79343814.1%18.1%2,506714791Visa Inc.91011.0%13.1%3778.4%9.1%9,59753213.0%16.1%3,3691,0421,198 For the 12 Months Ended December 31, 2012TotalVolume($ 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$1,70710.7%11.5%$1,14911.8%11.8%12,260$5598.5%10.7%2,744Canada2465.2%6.2%2265.6%6.6%2,063201.1%2.2%43CEMEA94816.3%21.9%18430.7%37.7%3,15176413.3%18.6%4,337LAC9891.2%11.9%3758.6%21.1%8,629615-2.9%7.0%3,795US 2,5192.4%2.4%2,0852.2%2.2%41,0764343.5%3.5%3,488Visa Inc.6,4096.3%8.9%4,0186.7%7.9%67,1782,3915.8%10.6%14,408Visa Credit ProgramsUS$1,0259.9%9.9%$98110.4%10.4%11,579$44-0.7%-0.7%62Rest of World1,7578.8%11.0%1,55910.3%12.4%18,121197-1.7%0.8%764Visa Inc.2,7829.2%10.6%2,54010.3%11.6%29,700242-1.5%0.6%827Visa Debit ProgramsUS$1,494-2.2%-2.2%$1,104-4.2%-4.2%29,497$3894.1%4.1%3,426Rest of World2,1349.2%15.8%37419.5%26.6%7,9811,7607.2%13.8%10,155Visa Inc.3,6274.2%7.7%1,4780.9%2.1%37,4782,1496.6%11.9%13,581 For the 12 Months Ended December 31, 2011TotalVolume($ 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$1,54219.2%12.8%$1,02721.5%14.1%11,222$51514.7%10.2%2,424519613Canada23411.0%7.0%21411.0%7.1%1,8812010.0%6.0%402736CEMEA81526.9%26.0%14135.6%35.2%2,22767425.2%24.2%3,963241243LAC97822.8%19.7%34527.6%24.4%7,53063320.3%17.3%3,699383414US 2,4609.4%9.4%2,0419.5%9.5%41,1054198.7%8.7%3,527531670Visa Inc.6,02816.1%13.6%3,76815.0%12.5%63,9662,26118.0%15.6%13,6521,7011,977Visa Credit ProgramsUS$9339.5%9.5%$8899.8%9.8%10,327$454.9%4.9%65203263Rest of World1,61420.0%14.0%1,41420.4%14.2%16,45020117.2%12.6%713456516Visa Inc.2,54816.0%12.3%2,30216.1%12.4%26,77724514.7%11.1%778659779Visa Debit ProgramsUS$1,5279.3%9.3%$1,1529.3%9.3%30,778$3749.2%9.2%3,462328407Rest of World1,95422.3%19.5%31331.5%27.8%6,4111,64120.7%18.0%9,413714791Visa Inc.3,48116.2%14.6%1,46513.4%12.7%37,1892,01518.4%16.2%12,8741,0421,198FootnoteThe 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(NominalUSD)Growth(ConstantUSD)3 Months EndedDec 31, 201211%11%Sep 30, 20127%10%Jun 30, 201210%14%Mar 31, 201215%16%Dec 31, 201112%13%12 Months EndedDec 31, 201210%13%Dec 31, 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.PeriodProcessedTransactions(millions)Growth3 Months EndedDec 31, 201214,1594%Sep 30, 201213,5732%Jun 30, 201213,1131%Mar 31, 201213,0388%Dec 31, 201113,6008%12 Months EndedDec 31, 201253,8834%Dec 31, 201151,94110% 4. CyberSource TransactionsThe table below represents billable transactions processed on Visa Inc.'s CyberSource network.PeriodBillableTransactions(millions)Growth3 Months EndedDec 31, 20121,58128%Sep 30, 20121,36325%Jun 30, 20121,30325%Mar 31, 20121,28126%Dec 31, 20111,23525%12 Months EndedDec 31, 20125,52726%Dec 31, 20114,38532% SOURCE Visa Inc.