Current Report Filing (8-k)

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

 

 

FORM 8-K

 

 

CURRENT REPORT

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

Date of Report (Date of earliest event reported): October 29, 2014

 

 

VISA INC.

(Exact name of Registrant as Specified in Its Charter)

 

 

 

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

 

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

Registrant’s Telephone Number, Including Area Code: [phone]

N/A

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

 

 

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

 

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

 

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

 

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

 

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

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Item 2.02

Results of Operations and Financial Condition.

On October 29, 2014, Visa Inc. (the “Company”) issued a press release announcing financial results for the Company’s fiscal fourth quarter and full-year 2014, ended September 30, 2014.

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

On October 29, 2014, the Company will host a conference call to discuss its fiscal fourth quarter and full-year 2014 financial results.

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

 

Item 9.01

Financial Statements and Exhibits.

 

(d)

Exhibits

 

99.1		Press Release of Visa Inc., dated October 29, 2014
99.2		Presentation of Visa Inc., dated October 29, 2014

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SIGNATURES

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

 

				VISA INC.
Date: October 29, 2014				By:		/s/ Byron H. Pollitt
						Byron H. Pollitt Chief Financial Officer

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EXHIBIT INDEX

 

Exhibit Number		Description
99.1		Press Release of Visa Inc., dated October 29, 2014
99.2		Presentation of Visa Inc., dated October 29, 2014

Exhibit 99.1

 

 

 

 

Visa Inc. Reports Strong Fiscal Fourth Quarter Adjusted Earnings Per Share Growth of 17% and Full-Year 2014 Adjusted Earnings Per Share Growth of 19% and Announces a New $5.0 Billion Share Repurchase Program

 

 

 

•

Adjusted quarterly net income of $1.4 billion or $2.18 per diluted class A common share, excluding special item, an increase of 14% and 17% over the prior year, respectively

 

•

Adjusted full-year 2014 net income of $5.7 billion or $9.07 per diluted class A common share, excluding special item, an increase of 15% and 19% over the prior year, respectively

 

•

GAAP quarterly net income of $1.1 billion or $1.72 per diluted class A common share, including special item, a decrease of 10% and 7% over the prior year, respectively

 

•

GAAP full-year 2014 net income of $5.4 billion or $8.62 per diluted class A common share, including special item, an increase of 9% and 14% over the prior year, respectively

 

•

The Company authorized a new $5.0 billion repurchase program, in addition to the previously announced 20% quarterly dividend increase

Foster City, CA, October 29, 2014 – Visa Inc. (NYSE: V) today announced financial results for the Company’s fiscal fourth quarter and full-year 2014. GAAP net income in the fiscal fourth quarter of 2014 was $1.1 billion or $1.72 per share, a decrease of 10% and 7% over the prior year, respectively. GAAP net income for the full-year 2014 was $5.4 billion or $8.62 per share, an increase of 9% and 14% over the prior year, respectively. All references to earnings per share assume fully-diluted class A share count unless otherwise noted.

On an adjusted basis, the Company’s financial results excluded the impact of a special item related to amounts covered by the retrospective responsibility plan of $450 million and related tax benefit during the fiscal fourth quarter. On an adjusted basis, net income in the fiscal fourth quarter was $1.4 billion or $2.18 per share, an increase of 14% and 17% over the prior year, respectively. On an adjusted basis, net income for the full-year 2014 was $5.7 billion or $9.07 per share, an increase of 15% and 19% over the prior year, respectively.

 

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GAAP net operating revenue in the fiscal fourth quarter of 2014 was $3.2 billion, an increase of 9% nominally or 10% on a constant dollar basis over the prior year. The strengthening of the U.S. dollar versus the prior year quarter negatively impacted net operating revenue growth by about 1.5 percentage points.

GAAP net operating revenue for the full-year 2014 was $12.7 billion, an increase of 8% nominally or 10% on a constant dollar basis over the prior year, driven by solid revenue growth contributions from service and data processing revenues. The strengthening of the U.S. dollar versus the prior year negatively impacted net operating revenue growth by about 2 percentage points.

Adjusted quarterly and full-year operating expenses and 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.

“Our enviable competitive position, strong business model, and great talent helped us deliver adjusted EPS growth of 17% for the fourth quarter and 19% for the full year in the face of continued tepid economic growth and a strengthening dollar. More importantly, the underlying metrics which will drive our revenue growth over the longer term are strong and getting stronger,” said Charlie Scharf, Chief Executive Officer of Visa Inc. “Our partnerships are growing, our capabilities are improving, and the opportunity for Visa to disintermediate cash across the globe is bigger than ever. Our investments in Visa Checkout, Visa Token Services, and Visa Digital Solutions are just beginning to have an impact in the marketplace. We will continue to invest in these and other areas and remain confident in our ability to capture the growing opportunity in payments.

Fiscal Fourth Quarter 2014 Financial Highlights:

Payments volume growth, on a constant dollar basis, for the three months ended June 30, 2014, on which fiscal fourth quarter service revenue is recognized, was 12% over the prior year at $1.2 trillion.

Payments volume growth, on a constant dollar basis, for the three months ended September 30, 2014, was 11% over the prior year at $1.2 trillion.

Cross-border volume growth, on a constant dollar basis, was 10% for the three months ended September 30, 2014.

Total processed transactions, which represent transactions processed by VisaNet, for the three months ended September 30, 2014, were 16.9 billion, a 9% increase over the prior year.

Fiscal fourth quarter 2014 service revenues were $1.5 billion, an increase of 8% over the prior year, and are recognized based on payments volume in the prior quarter. All other revenue categories are recognized based on current quarter activity. Data processing revenues rose 14% over the prior year to $1.3 billion. International transaction revenues grew 4% over the prior year to $938 million. Other revenues, which include the Visa Europe licensing fee, were $212 million, a 16% increase over the prior year. Client incentives, which are a contra revenue item, were $768 million and represent 19.2% of gross revenues.

 

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The Company recorded a $450 million pre-tax litigation provision, or $283 million on an after-tax basis, in the fiscal fourth quarter of 2014 related to the interchange multidistrict litigation case.

Excluding the covered litigation provision, total adjusted operating expenses were $1.2 billion for fiscal fourth quarter 2014, flat over the prior year results, primarily related to a reduction in professional fees offset by increases in general and administrative costs and other corporate expenses to support the Company’s global business growth initiatives.

GAAP effective tax rate was 30.8% for the quarter ended September 30, 2014.

The weighted-average number of diluted class A common shares outstanding in the fiscal fourth quarter was 623 million.

Cash, cash equivalents, and available-for-sale investment securities were $6.9 billion at September 30, 2014.

Fiscal Full-Year 2014 Financial Highlights:

For the fiscal full-year 2014, service revenues were $5.8 billion, an increase of 8% over the prior year. Data processing revenues rose 11% over the prior year to $5.2 billion. International transaction revenues, which are driven by cross-border volume, grew 5% over the prior year to $3.6 billion. Other revenues, which include the Visa Europe licensing fee, were $770 million, a 7% increase over the prior year. Client incentives, which are a contra revenue item, were $2.6 billion and represent 16.9% of gross revenues.

Total processed transactions, which represent transactions processed by VisaNet for the twelve months ended September 30, 2014, totaled 64.9 billion, an 11% increase over the prior year.

Excluding the aforementioned litigation provision, total adjusted operating expenses were $4.6 billion for the twelve months ended September 30, 2014, flat over the prior year adjusted results, primarily related to a reduction in professional fees and personnel, offset by continued investments in infrastructure, technology and network processing to support the Company’s global growth initiatives.

 

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GAAP effective tax rate was 29.6% for the twelve months ended September 30, 2014.

The weighted-average number of diluted class A common shares outstanding for the full year was 631 million.

Notable Events:

During the three months ended September 30, 2014, total as-converted class A common stock was reduced by 5.7 million shares, which was funded from $1.2 billion of our operating cash on hand. Of the $1.2 billion, $756 million was used to repurchase 3.6 million shares of class A common stock in the open market, at an average price of $211.19. In addition, we deposited $450 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.

During the twelve months ended September 30, 2014, total as-converted class A common stock was reduced by 21.8 million shares, at an average price of $209.15 per share, using $4.6 billion of cash on hand. Of the $4.6 billion, $4.1 billion was used to repurchase shares of class A common stock in the open market at an average price of $208.50. At September 30, 2014, the Company had $682 million of remaining funds, authorized by the board of directors, available for share repurchase under the current program.

As announced on October 22, 2014, the Board of Directors declared a quarterly dividend in the aggregate amount of $0.48 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 2, 2014, to all holders of record of the Company’s class A, class B and class C common stock as of November 14, 2014.

The Board of Directors has authorized a new $5.0 billion class A common stock share repurchase program. The shares may be repurchased from time to time as market conditions warrant, and authorization for the program is subject to further change at the discretion of the Board.

 

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Financial Outlook:

Visa Inc. provides its financial outlook for the following metrics for fiscal full-year 2015:

 

•

Annual net revenue growth: Constant dollar revenue growth of low double digits, with an expectation of two percentage points of negative foreign currency impact;

 

•

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

 

•

Annual operating margin: Mid 60s;

 

•

Tax rate: Low 30s;

 

•

Annual diluted class A common stock earnings per share growth: Mid teens; and

 

•

Annual free cash flow greater than $6 billion.

Fiscal full-year 2015 annual diluted earnings per share growth assumes an adjusted basis for fiscal full-year 2014.

Fiscal Fourth Quarter 2014 Earnings Results Conference Call Details:

Visa’s executive management team will host a live audio webcast beginning at 5:00 p.m. Eastern Time (2:00 p.m. Pacific Time) today to discuss the financial results and business highlights. All interested parties are invited to listen to the live webcast at http://investor.visa.com. A replay of the webcast will be available on the Visa Investor Relations website for 30 days. Investor information, including supplemental financial information, is available on Visa Inc.’s Investor Relations website at http://investor.visa.com.

About Visa

Visa Inc. (NYSE: V) is a global payments technology company that connects consumers, businesses, financial institutions, and governments in more than 200 countries and territories to fast, secure and reliable electronic payments. We operate one of the world’s most advanced processing networks —VisaNet — that is capable of handling more than 56,000 transaction messages a second, with fraud protection for consumers and assured payment for merchants. Visa is not a bank and does not issue cards, extend credit or set rates and fees for consumers. Visa’s innovations, however, enable its financial institution customers to offer consumers more choices: pay now with debit, pay ahead of time with prepaid or pay later with credit products. For more information, visit usa.visa.com/about-visa, visacorporate.tumblr.com and @VisaNews.

Forward-Looking Statements:

This Press Release contains forward-looking statements within the meaning of the U.S. Private Securities Litigation Reform Act of 1995. Forward-looking statements generally are identified by words such as “believes,” “estimates,” “expects,” “intends,” “may,” “projects,” “could,” “should,” “will,” “will continue” and other similar expressions. Examples of forward-looking statements include, but are not limited to, statements we make about our revenue, client incentives, operating margin, tax rate, earnings per share, free cash flow, and the growth of those items.

 

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By their nature, forward-looking statements: (i) speak only as of the date they are made; (ii) are not statements of historical fact or guarantees of future performance; and (iii) are subject to risks, uncertainties, assumptions or changes in circumstances that are difficult to predict or quantify. Therefore, actual results could differ materially and adversely from our forward-looking statements due to a variety of factors, including the following:

 

•

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

 

•

rules capping debit interchange reimbursement rates and expanding financial institutions’ and merchants’ choices among debit payment networks promulgated under the Dodd-Frank Wall Street Reform and Consumer Protection Act;

 

•

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

 

•

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

 

•

increased regulation on consumer privacy, data use and security;

 

•

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

 

•

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

 

•

economic factors, such as:

 

•

economic fragility in the Eurozone and in the United States;

 

•

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

 

•

general stock market fluctuations which may impact consumer spending;

 

•

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

 

•

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

 

•

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

 

•

system developments, such as:

 

•

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

 

•

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

 

•

failure to maintain systems interoperability with Visa Europe;

 

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•

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

 

•

the loss of organizational effectiveness or key employees;

 

•

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

 

•

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

various other factors, including those contained in our Annual Report on Form 10-K for the year ended September 30, 2013 and our other filings with the U.S. Securities and Exchange Commission. Additional information will also be available in our Annual Report on Form 10-K for the year ended September 30, 2014. You should not place undue reliance on such statements. Except as required by law, we do not intend to update or revise any forward–looking statements as a result of new information, future developments or otherwise.

Contacts:

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

Media Relations: Paul Cohen, 650-432-2990, [e-mail]

 

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VISA INC.

CONSOLIDATED BALANCE SHEETS

(UNAUDITED)

 

		September 30, 2014				September 30, 2013
		(in millions, except par value data)
Assets
Cash and cash equivalents		$	1,971			$	2,186
Restricted cash—litigation escrow			1,498				49
Investment securities:
Trading			69				75
Available-for-sale			1,910				1,994
Income tax receivable			91				142
Settlement receivable			786				799
Accounts receivable			822				761
Customer collateral			961				866
Current portion of client incentives			210				282
Deferred tax assets			1,028				481
Prepaid expenses and other current assets			216				187
Total current assets			9,562				7,822
Investment securities, available-for-sale			3,015				2,760
Client incentives			81				89
Property, equipment and technology, net			1,892				1,732
Other assets			855				521
Intangible assets, net			11,411				11,351
Goodwill			11,753				11,681
Total assets		$	38,569			$	35,956
Liabilities
Accounts payable		$	147			$	184
Settlement payable			1,332				1,225
Customer collateral			961				866
Accrued compensation and benefits			450				523
Client incentives			1,036				919
Accrued liabilities			624				613
Accrued litigation			1,456				5
Total current liabilities			6,006				4,335
Deferred tax liabilities			4,145				4,149
Other liabilities			1,005				602
Total liabilities			11,156				9,086
Equity
Preferred stock, $0.0001 par value, 25 shares authorized and none issued			—				—
Class A common stock, $0.0001 par value, 2,001,622 shares authorized, 495 and 508 shares issued and outstanding at September 30, 2014 and 2013, respectively			—				—
Class B common stock, $0.0001 par value, 622 shares authorized, 245 shares issued and outstanding at September 30, 2014 and 2013			—				—
Class C common stock, $0.0001 par value, 1,097 shares authorized, 22 and 27 shares issued and outstanding at September 30, 2014 and 2013, respectively			—				—
Additional paid-in capital			18,299				18,875
Accumulated income			9,131				7,974
Accumulated other comprehensive (loss) income, net:
Investment securities, available-for-sale			31				59
Defined benefit pension and other postretirement plans			(84	)			(60	)
Derivative instruments classified as cash flow hedges			38				23
Foreign currency translation adjustments			(2	)			(1	)
Total accumulated other comprehensive (loss) income, net			(17	)			21
Total equity			27,413				26,870
Total liabilities and equity		$	38,569			$	35,956

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VISA INC.

CONSOLIDATED STATEMENTS OF OPERATIONS

(UNAUDITED)

 

		Three Months Ended September 30,								Twelve Months Ended September 30,
		2014				2013				2014				2013
		(in millions, except per share data)
Operating Revenues
Service revenues		$	1,499			$	1,385			$	5,797			$	5,352
Data processing revenues			1,348				1,186				5,167				4,642
International transaction revenues			938				899				3,560				3,389
Other revenues			212				183				770				716
Client incentives			(768	)			(680	)			(2,592	)			(2,321	)
Total operating revenues			3,229				2,973				12,702				11,778
Operating Expenses
Personnel			496				499				1,875				1,932
Marketing			241				236				900				876
Network and processing			128				122				507				468
Professional fees			94				130				328				412
Depreciation and amortization			112				106				435				397
General and administrative			153				129				507				451
Litigation provision			453				—				453				3
Total operating expenses			1,677				1,222				5,005				4,539
Operating income			1,552				1,751				7,697				7,239
Non-operating (expense) income			(2	)			15				27				18
Income before income taxes			1,550				1,766				7,724				7,257
Income tax provision			477				574				2,286				2,277
Net income		$	1,073			$	1,192			$	5,438			$	4,980
Basic earnings per share
Class A common stock		$	1.73			$	1.86			$	8.65			$	7.61
Class B common stock		$	0.73			$	0.78			$	3.63			$	3.20
Class C common stock		$	1.73			$	1.86			$	8.65			$	7.61
Basic weighted-average shares outstanding
Class A common stock			492				509				498				520
Class B common stock			245				245				245				245
Class C common stock			24				27				26				28
Diluted earnings per share
Class A common stock		$	1.72			$	1.85			$	8.62			$	7.59
Class B common stock		$	0.72			$	0.78			$	3.62			$	3.19
Class C common stock		$	1.72			$	1.85			$	8.62			$	7.59
Diluted weighted-average shares outstanding
Class A common stock			623				644				631				656
Class B common stock			245				245				245				245
Class C common stock			24				27				26				28

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VISA INC.

CONSOLIDATED STATEMENTS OF CASH FLOWS

(UNAUDITED)

 

		For the Years Ended September 30,
		2014				2013				2012
		(in millions)
Operating Activities
Net income		$	5,438			$	4,980			$	2,142
Adjustments to reconcile net income to net cash provided by (used in) operating activities:
Amortization of client incentives			2,592				2,321				2,155
Share-based compensation			172				179				147
Excess tax benefit for share-based compensation			(90	)			(74	)			(71	)
Depreciation and amortization of property, equipment, technology and intangible assets			435				397				333
Deferred income taxes			(580	)			1,527				(1,690	)
Litigation provision			453				3				4,101
Other			37				50				(8	)
Change in operating assets and liabilities:
Income tax receivable			51				37				(67	)
Settlement receivable			13				(345	)			(42	)
Accounts receivable			(53	)			(38	)			(161	)
Client incentives			(2,395	)			(2,336	)			(1,757	)
Other assets			(430	)			(543	)			41
Accounts payable			(56	)			40				(17	)
Settlement payable			107				506				270
Accrued and other liabilities			513				702				(227	)
Accrued litigation			998				(4,384	)			(140	)
Net cash provided by operating activities			7,205				3,022				5,009
Investing Activities
Purchases of property, equipment, technology and intangible assets			(553	)			(471	)			(376	)
Proceeds from disposal of property, equipment and technology			—				—				2
Investment securities, available-for-sale:
Purchases			(2,572	)			(3,164	)			(4,140	)
Proceeds from maturities and sales			2,342				2,440				2,093
Acquisitions, net of cash received			(149	)			—				(3	)
Purchases of / contributions to other investments			(9	)			(3	)			(12	)
Proceeds / distributions from other investments			—				34				22
Net cash used in investing activities			(941	)			(1,164	)			(2,414	)
Financing Activities
Repurchase of class A common stock			(4,118	)			(5,365	)			(710	)
Dividends paid			(1,006	)			(864	)			(595	)
Deposits into litigation escrow account—retrospective responsibility plan			(450	)			—				(1,715	)
(Return to) payments from litigation escrow account—retrospective responsibility plan			(999	)			4,383				140
Cash proceeds from exercise of stock options			91				108				174
Restricted stock and performance-based shares settled in cash for taxes			(86	)			(64	)			—
Excess tax benefit for share-based compensation			90				74				71
Payments for earn-out related to PlaySpan acquisition			—				(12	)			(14	)
Principal payments on capital lease obligations			—				(6	)			(6	)
Net cash used in financing activities			(6,478	)			(1,746	)			(2,655	)
Effect of exchange rate changes on cash and cash equivalents			(1	)			—				7
(Decrease) increase in cash and cash equivalents			(215	)			112				(53	)
Cash and cash equivalents at beginning of year			2,186				2,074				2,127
Cash and cash equivalents at end of year		$	1,971			$	2,186			$	2,074
Supplemental Disclosures
Income taxes paid, net of refunds		$	2,656			$	595			$	2,057
Non-cash accruals related to purchases of property, equipment, technology and intangible assets		$	62			$	46			$	67

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VISA INC.

FISCAL 2014 AND 2013 QUARTERLY RESULTS OF OPERATIONS

(UNAUDITED)

 

		Fiscal 2014 Quarter Ended																Fiscal 2013 Quarter Ended
		September 30, 2014				June 30, 2014				March 31, 2014				December 31, 2013				September 30, 2013
		(in millions)
Operating Revenues
Service revenues		$	1,499			$	1,417			$	1,462			$	1,419			$	1,385
Data processing revenues			1,348				1,321				1,234				1,264				1,186
International transaction revenues			938				860				871				891				899
Other revenues			212				195				183				180				183
Client incentives			(768	)			(638	)			(587	)			(599	)			(680	)
Total operating revenues			3,229				3,155				3,163				3,155				2,973
Operating Expenses
Personnel			496				463				446				470				499
Marketing			241				228				245				186				236
Network and processing			128				127				120				132				122
Professional fees			94				82				77				75				130
Depreciation and amortization			112				109				107				107				106
General and administrative			153				126				120				108				129
Litigation provision			453				—				—				—				—
Total operating expenses			1,677				1,135				1,115				1,078				1,222
Operating income			1,552				2,020				2,048				2,077				1,751
Non-operating (expense) income			(2	)			10				13				6				15
Income before income taxes			1,550				2,030				2,061				2,083				1,766
Income tax provision			477				670				463				676				574
Net income		$	1,073			$	1,360			$	1,598			$	1,407			$	1,192

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VISA INC.

Reconciliation of Non-GAAP Financial Results

US$ in millions, except margin ratio and per share data

During the fourth quarter of fiscal 2014, we recorded a provision of $450 million and related tax benefits associated with litigation covered by the retrospective responsibility plan (“litigation provision”). We believe the presentation of our adjusted financial results, excluding the litigation provision, provides a clearer understanding of our operating performance for the periods presented.

 

		Three Months Ended September 30,
		Operating Expenses								Operating Margin(1),(2)								Net Income								Diluted Earnings per Share(2)
		2014				2013				2014				2013				2014				2013				2014				2013
As reported		$	1,677			$	1,222				48	%			59	%		$	1,073			$	1,192			$	1.72			$	1.85
Litigation provision			(450	)			—				14	%			—				283	(3)			—				0.45				—
Adjusted		$	1,227			$	1,222				62	%			59	%		$	1,356			$	1,192			$	2.18			$	1.85
Diluted weighted-average shares outstanding																											623				644

 

		Twelve Months Ended September 30,
		Operating Expenses								Operating Margin(1),(2)								Net Income								Diluted Earnings per Share(2)
		2014				2013				2014				2013				2014				2013				2014				2013
As reported		$	5,005			$	4,539				61	%			61	%		$	5,438			$	4,980			$	8.62			$	7.59
Litigation provision			(450	)			—				4	%			—				283	(3)			—				0.45				—
Adjusted		$	4,555			$	4,539				64	%			61	%		$	5,721			$	4,980			$	9.07			$	7.59
Diluted weighted-average shares outstanding																											631				656

 

(1)	Operating margin is calculated as operating income divided by total operating revenues.

(2)	Figures in the table may not recalculate exactly due to rounding. Operating margin and diluted earnings per share figures are calculated based on unrounded numbers.

(3)	The litigation provision adjustment to net income is shown net of tax. The tax impact is determined by applying applicable federal and state tax rates to the litigation provision.

---

 

Operational Performance Data

The tables below provide information regarding the available operational results for the 3 months ended September 30, 2014, as well as the prior four quarterly reporting periods and the 12 months ended September 30, 2014 and 2013, for cards carrying the Visa, Visa Electron and Interlink brands. Also included is a table with information on the number of billable transactions processed on Visa Inc.’s CyberSource network.

1. Branded Volume and Transactions

The tables present total volume, payments volume, and cash volume, and the number of payments transactions, cash transactions, accounts and cards for cards carrying the Visa, Visa Electron and Interlink brands. Card counts include PLUS proprietary cards. Nominal and constant dollar growth rates over prior years are provided for volume-based data.

 

		For the 3 Months Ended September 30, 2014
		Total Volume ($ billions)				Growth (Nominal USD)				Growth (Constant USD)				Payments Volume ($ billions)				Growth (Nominal USD)				Growth (Constant USD)				Payments Transactions (millions)				Cash Volume ($ billions)				Growth (Nominal USD)				Growth (Constant USD)				Cash Transactions (millions)
All Visa Credit & Debit
Asia Pacific		$	505				8.8	%			8.8	%		$	351				11.6	%			11.5	%			3,999			$	154				2.9	%			3.0	%			958
Canada			66				1.5	%			6.8	%			61				1.2	%			6.5	%			646				5				4.7	%			10.1	%			12
CEMEA			280				5.7	%			14.8	%			67				17.9	%			26.4	%			1,486				212				2.4	%			11.6	%			1,172
LAC			276				6.6	%			12.2	%			105				7.5	%			14.5	%			2,493				171				6.1	%			10.8	%			1,056
US			755				9.2	%			9.2	%			631				9.8	%			9.8	%			12,299				124				6.2	%			6.2	%			951
Visa Inc.			1,882				7.9	%			10.2	%			1,215				10.0	%			11.3	%			20,923				667				4.2	%			8.3	%			4,150
Visa Credit Programs
US		$	327				12.7	%			12.7	%		$	313				12.7	%			12.7	%			3,732			$	14				11.8	%			11.8	%			17
International			505				7.4	%			10.2	%			457				8.7	%			11.1	%			5,553				49				-3.5	%			2.9	%			193
Visa Inc.			832				9.4	%			11.2	%			769				10.3	%			11.7	%			9,285				62				-0.5	%			4.8	%			210
Visa Debit Programs
US		$	429				6.7	%			6.7	%		$	319				7.0	%			7.0	%			8,567			$	110				5.6	%			5.6	%			934
International			621				6.7	%			11.5	%			127				16.5	%			20.7	%			3,071				494				4.5	%			9.3	%			3,006
Visa Inc.			1,050				6.7	%			9.5	%			446				9.6	%			10.6	%			11,638				604				4.7	%			8.6	%			3,940
		For the 3 Months Ended June 30, 2014
		Total Volume ($ billions)				Growth (Nominal USD)				Growth (Constant USD)				Payments Volume ($ billions)				Growth (Nominal USD)				Growth (Constant USD)				Payments Transactions (millions)				Cash Volume ($ billions)				Growth (Nominal USD)				Growth (Constant USD)				Cash Transactions (millions)				Accounts (millions)				Cards (millions)
All Visa Credit & Debit
Asia Pacific		$	488				7.0	%			9.5	%		$	338				11.1	%			12.3	%			3,821			$	151				-1.1	%			3.8	%			910				658				754
Canada			65				0.6	%			7.6	%			60				1.1	%			8.2	%			627				5				-5.2	%			1.5	%			12				39				46
CEMEA			276				5.0	%			13.9	%			65				18.1	%			26.8	%			1,389				212				1.6	%			10.5	%			1,196				313				310
LAC			266				-1.3	%			9.6	%			101				0.3	%			12.4	%			2,408				165				-2.3	%			8.0	%			1,013				418				446
US			750				9.3	%			9.3	%			628				10.0	%			10.0	%			12,221				122				5.8	%			5.8	%			941				579				742
Visa Inc.			1,845				6.1	%			10.0	%			1,191				9.4	%			11.6	%			20,465				654				0.7	%			7.3	%			4,071				2,007				2,298
Visa Credit Programs
US		$	316				12.1	%			12.1	%		$	303				12.3	%			12.3	%			3,575			$	13				8.3	%			8.3	%			16				223				295
International			489				5.7	%			10.1	%			440				7.0	%			11.0	%			5,366				49				-4.3	%			2.4	%			199				478				536
Visa Inc.			805				8.1	%			10.9	%			744				9.1	%			11.5	%			8,941				62				-2.0	%			3.5	%			215				701				831
Visa Debit Programs
US		$	433				7.4	%			7.4	%		$	324				8.0	%			8.0	%			8,646			$	109				5.5	%			5.5	%			925				356				447
International			607				2.7	%			10.9	%			123				15.0	%			22.7	%			2,878				484				0.0	%			8.2	%			2,931				950				1,020
Visa Inc.			1,040				4.6	%			9.4	%			447				9.8	%			11.7	%			11,524				592				0.9	%			7.7	%			3,856				1,306				1,467

---

Operational Performance Data

 

 

		For the 3 Months Ended March 31, 2014
		Total Volume ($ billions)				Growth (Nominal USD)				Growth (Constant USD)				Payments Volume ($ billions)				Growth (Nominal USD)				Growth (Constant USD)				Payments Transactions (millions)				Cash Volume ($ billions)				Growth (Nominal USD)				Growth (Constant USD)				Cash Transactions (millions)				Accounts (millions)				Cards (millions)
All Visa Credit & Debit
Asia Pacific		$	481				7.1	%			11.6	%		$	328				10.9	%			14.9	%			3,574			$	153				-0.3	%			5.0	%			878				642				738
Canada			57				0.8	%			10.3	%			52				0.7	%			10.1	%			552				5				2.3	%			11.9	%			11				37				44
CEMEA			252				4.1	%			14.1	%			59				16.4	%			28.0	%			1,252				194				0.9	%			10.5	%			1,105				306				307
LAC			250				-4.7	%			11.4	%			95				-4.0	%			13.9	%			2,367				155				-5.1	%			9.9	%			984				411				439
US			690				8.0	%			8.0	%			575				8.6	%			8.6	%			11,141				115				5.1	%			5.1	%			875				568				725
Visa Inc.			1,730				4.9	%			10.4	%			1,108				8.0	%			11.8	%			18,887				622				-0.2	%			7.9	%			3,854				1,963				2,253
Visa Credit Programs
US		$	281				10.2	%			10.2	%		$	270				10.6	%			10.6	%			3,148			$	12				1.4	%			1.4	%			14				215				283
International			463				4.9	%			12.3	%			417				6.0	%			13.3	%			5,069				46				-3.9	%			4.1	%			176				474				533
Visa Inc.			744				6.9	%			11.5	%			687				7.8	%			12.2	%			8,217				57				-2.8	%			3.6	%			191				688				816
Visa Debit Programs
US		$	409				6.5	%			6.5	%		$	305				6.8	%			6.8	%			7,993			$	103				5.6	%			5.6	%			861				353				442
International			577				1.4	%			11.9	%			115				13.1	%			24.8	%			2,677				461				-1.1	%			9.0	%			2,802				922				994
Visa Inc.			985				3.5	%			9.6	%			421				8.4	%			11.2	%			10,670				564				0.0	%			8.4	%			3,663				1,275				1,436

 

		For the 3 Months Ended December 31, 2013
		Total Volume ($ billions)				Growth (Nominal USD)				Growth (Constant USD)				Payments Volume ($ billions)				Growth (Nominal USD)				Growth (Constant USD)				Payments Transactions (millions)				Cash Volume ($ billions)				Growth (Nominal USD)				Growth (Constant USD)				Cash Transactions (millions)				Accounts (millions)				Cards (millions)
All Visa Credit & Debit
Asia Pacific		$	493				7.5	%			12.7	%		$	339				8.3	%			14.2	%			3,677			$	154				5.8	%			9.5	%			890				622				721
Canada			66				-0.1	%			5.5	%			62				-0.2	%			5.5	%			609				5				0.3	%			6.0	%			11				36				43
CEMEA			286				9.3	%			13.2	%			62				23.0	%			28.5	%			1,231				223				6.0	%			9.6	%			1,176				300				300
LAC			287				1.9	%			10.8	%			110				5.5	%			15.9	%			2,506				177				-0.2	%			7.8	%			1,066				407				437
US			706				7.8	%			7.8	%			591				8.5	%			8.5	%			11,589				115				4.3	%			4.3	%			895				564				718
Visa Inc.			1,838				6.7	%			10.3	%			1,164				8.3	%			11.5	%			19,613				674				3.9	%			8.1	%			4,038				1,929				2,219
Visa Credit Programs
US		$	300				9.3	%			9.3	%		$	288				9.6	%			9.6	%			3,446			$	12				2.6	%			2.6	%			16				216				279
International			502				5.2	%			11.5	%			450				5.7	%			12.5	%			5,294				53				0.4	%			4.1	%			196				472				531
Visa Inc.			802				6.7	%			10.7	%			737				7.2	%			11.3	%			8,740				65				0.8	%			3.8	%			213				688				810
Visa Debit Programs
US		$	406				6.7	%			6.7	%		$	303				7.5	%			7.5	%			8,143			$	103				4.5	%			4.5	%			879				348				439
International			630				6.7	%			12.2	%			124				18.0	%			24.6	%			2,730				506				4.2	%			9.5	%			2,947				893				970
Visa Inc.			1,036				6.7	%			10.0	%			427				10.3	%			11.9	%			10,873				609				4.3	%			8.6	%			3,826				1,241				1,409

 

		For the 3 Months Ended September 30, 2013
		Total Volume ($ billions)				Growth (Nominal USD)				Growth (Constant USD)				Payments Volume ($ billions)				Growth (Nominal USD)				Growth (Constant USD)				Payments Transactions (millions)				Cash Volume ($ billions)				Growth (Nominal USD)				Growth (Constant USD)				Cash Transactions (millions)				Accounts (millions)				Cards (millions)
All Visa Credit & Debit
Asia Pacific		$	464				8.2	%			13.5	%		$	314				8.5	%			14.6	%			3,557			$	150				7.5	%			11.1	%			854				610				710
Canada			65				4.6	%			9.4	%			60				4.8	%			9.6	%			602				5				2.3	%			7.0	%			12				34				41
CEMEA			265				12.2	%			15.9	%			57				26.8	%			32.1	%			1,121				207				8.8	%			12.1	%			1,120				296				294
LAC			259				1.6	%			10.7	%			98				4.4	%			14.6	%			2,348				161				0.0	%			8.5	%			998				403				431
US			692				9.3	%			9.3	%			575				10.3	%			10.3	%			11,400				117				4.8	%			4.8	%			928				540				703
Visa Inc.			1,745				8.0	%			11.5	%			1,104				9.6	%			12.7	%			19,028				640				5.4	%			9.5	%			3,912				1,883				2,179
Visa Credit Programs
US		$	290				10.9	%			10.9	%		$	277				11.0	%			11.0	%			3,324			$	12				8.2	%			8.2	%			16				207				277
International			470				6.3	%			12.4	%			420				6.9	%			13.5	%			5,138				50				1.8	%			4.2	%			196				468				526
Visa Inc.			760				8.0	%			11.8	%			697				8.5	%			12.5	%			8,461				63				3.0	%			5.0	%			212				675				804
Visa Debit Programs
US		$	402				8.2	%			8.2	%		$	298				9.6	%			9.6	%			8,076			$	104				4.4	%			4.4	%			912				333				426
International			582				7.9	%			13.6	%			109				17.7	%			24.6	%			2,491				473				5.9	%			11.3	%			2,788				875				949
Visa Inc.			984				8.0	%			11.3	%			407				11.7	%			13.2	%			10,567				577				5.6	%			10.0	%			3,700				1,208				1,375

---

Operational Performance Data

 

 

		For the 12 Months Ended September 30, 2014
		Total Volume ($ billions)				Growth (Nominal USD)				Growth (Constant USD)				Payments Volume ($ billions)				Growth (Nominal USD)				Growth (Constant USD)				Payments Transactions (millions)				Cash Volume ($ billions)				Growth (Nominal USD)				Growth (Constant USD)				Cash Transactions (millions)
All Visa Credit & Debit
Asia Pacific		$	1,967				7.6	%			10.6	%		$	1,355				10.5	%			13.2	%			15,071			$	612				1.8	%			5.3	%			3,636
Canada			254				0.7	%			7.4	%			234				0.7	%			7.5	%			2,434				20				0.4	%			7.2	%			46
CEMEA			1,094				6.1	%			14.0	%			253				18.8	%			27.4	%			5,359				841				2.8	%			10.5	%			4,650
LAC			1,079				0.6	%			11.0	%			411				2.4	%			14.2	%			9,774				668				-0.4	%			9.1	%			4,118
US			2,901				8.6	%			8.6	%			2,425				9.2	%			9.2	%			47,251				476				5.4	%			5.4	%			3,662
Visa Inc.			7,295				6.4	%			10.2	%			4,678				9.0	%			11.6	%			79,888				2,617				2.1	%			7.9	%			16,113
Visa Credit Programs
US		$	1,224				11.1	%			11.1	%		$	1,173				11.3	%			11.3	%			13,902			$	51				6.1	%			6.1	%			64
International			1,960				5.8	%			11.0	%			1,764				6.9	%			11.9	%			21,282				196				-2.8	%			3.4	%			765
Visa Inc.			3,183				7.8	%			11.0	%			2,937				8.6	%			11.7	%			35,183				246				-1.1	%			3.9	%			828
Visa Debit Programs
US		$	1,677				6.8	%			6.8	%		$	1,252				7.3	%			7.3	%			33,349			$	425				5.3	%			5.3	%			3,598
International			2,434				4.4	%			11.6	%			489				15.7	%			23.1	%			11,356				1,945				1.9	%			9.0	%			11,686
Visa Inc.			4,112				5.4	%			9.6	%			1,741				9.5	%			11.3	%			44,705				2,370				2.5	%			8.3	%			15,284
		For the 12 Months Ended September 30, 2013
		Total Volume ($ billions)				Growth (Nominal USD)				Growth (Constant USD)				Payments Volume ($ billions)				Growth (Nominal USD)				Growth (Constant USD)				Payments Transactions (millions)				Cash Volume ($ billions)				Growth (Nominal USD)				Growth (Constant USD)				Cash Transactions (millions)				Accounts (millions)				Cards (millions)
All Visa Credit & Debit
Asia Pacific		$	1,828				10.2	%			12.6	%		$	1,227				10.4	%			13.5	%			13,291			$	601				9.9	%			10.7	%			3,181				610				710
Canada			252				5.2	%			5.7	%			232				5.8	%			6.3	%			2,220				20				-1.1	%			-0.6	%			44				34				41
CEMEA			1,031				14.8	%			17.2	%			213				28.5	%			32.3	%			4,017				818				11.7	%			13.8	%			4,485				296				294
LAC			1,072				5.7	%			12.3	%			401				9.1	%			17.1	%			9,265				671				3.8	%			9.7	%			3,913				403				431
US			2,672				6.5	%			6.5	%			2,220				7.2	%			7.2	%			43,616				451				3.2	%			3.2	%			3,557				540				703
Visa Inc.			6,856				8.5	%			10.4	%			4,294				9.1	%			10.7	%			72,409				2,562				7.5	%			9.8	%			15,179				1,883				2,179
Visa Credit Programs
US		$	1,101				10.2	%			10.2	%		$	1,054				10.2	%			10.2	%			12,484			$	48				9.2	%			9.2	%			62				207				277
International			1,852				8.1	%			11.3	%			1,651				8.8	%			12.5	%			19,495				201				2.6	%			2.6	%			772				468				526
Visa Inc.			2,953				8.9	%			10.9	%			2,704				9.4	%			11.6	%			31,979				249				3.8	%			3.9	%			833				675				804
Visa Debit Programs
US		$	1,570				4.1	%			4.1	%		$	1,166				4.6	%			4.6	%			31,132			$	404				2.5	%			2.5	%			3,495				333				426
International			2,332				11.1	%			14.7	%			423				21.5	%			26.0	%			9,299				1,909				9.1	%			12.5	%			10,851				875				949
Visa Inc.			3,902				8.2	%			10.0	%			1,589				8.6	%			9.3	%			40,430				2,313				7.9	%			10.5	%			14,346				1,208				1,375

---

Operational Performance Data

 

 

Footnote

The preceding tables present regional total volume, payments volume and cash volume, and the number of payments transactions, cash transactions, accounts and cards for cards carrying the Visa, Visa Electron and Interlink brands. Card counts include PLUS proprietary cards. Nominal and constant dollar growth rates over prior years are provided for volume-based data.

Payments volume represents the aggregate dollar amount of purchases made with cards carrying the Visa, Visa Electron and Interlink brands for the relevant period; and cash volume represents the aggregate dollar amount of cash disbursements obtained with these cards for the relevant period and includes the impact of balance transfers and convenience checks; but excludes proprietary PLUS volume. Total volume represents payments volume plus cash volume.

Visa payment products are comprised of credit and debit programs, and data relating to each program is included in the tables. Debit programs include Visa’s signature based and Interlink (PIN) debit programs.

The data presented is based on results reported quarterly by Visa’s financial institution clients on their operating certificates. Estimates may be utilized if data is unavailable. On occasion, previously presented information may be updated.

Visa’s CEMEA region is comprised of countries in Central Europe, the Middle East and Africa. Effective with the 3 months ended September 2013, Croatia moved from the CEMEA region to Visa Europe. Several European Union countries in Central Europe, Israel and Turkey are not included in CEMEA. LAC is comprised of countries in Central and South America and the Caribbean. International includes Asia Pacific, Canada, CEMEA and LAC.

Information denominated in U.S. dollars is calculated by applying an established U.S. dollar/local currency exchange rate for each local currency in which Visa Inc. volumes are reported (“Nominal USD”). These exchange rates are calculated on a quarterly basis using the established exchange rate for each quarter. To eliminate the impact of foreign currency fluctuations against the U.S. dollar in measuring performance, Visa Inc. also reports year-over-year growth in total volume, payments volume and cash volume on the basis of local currency information (“Constant USD”). This presentation represents Visa’s historical methodology which may be subject to review and refinement.

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Operational Performance Data

 

 

2. Cross-Border Volume

The table below represents cross-border volume growth for cards carrying the Visa, Visa Electron, Interlink and PLUS brands. Cross-border volume refers to payments and cash volume where the issuing country is different from the merchant country.

 

Period		Growth (Nominal         USD)		Growth (Constant         USD)
3 Months Ended
Sep 30, 2014		9%		10%
Jun 30, 2014		6%		7%
Mar 31, 2014		5%		8%
Dec 31, 2013		11%		12%
Sep 30, 2013		9%		11%
12 Months Ended
Sep 30, 2014		8%		9%
Sep 30, 2013		10%		11%

3. Visa Processed Transactions

The table below represents transactions involving Visa, Visa Electron, Interlink and PLUS cards processed on Visa’s networks. CyberSource transactions are not included in this table, and are reported in the next section.

 

Period		Processed Transactions         (millions)		Growth
3 Months Ended
Sep 30, 2014		16,943		9%
Jun 30, 2014		16,662		11%
Mar 31, 2014		15,354		11%
Dec 31, 2013		15,985		13%
Sep 30, 2013		15,491		14%
12 Months Ended
Sep 30, 2014		64,944		11%
Sep 30, 2013		58,472		10%

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Operational Performance Data

 

 

4. CyberSource Transactions

The table below represents billable transactions processed on Visa Inc.’s CyberSource network.

 

Period		Billable Transactions       (millions)		Growth
3 Months Ended
Sep 30, 2014		1,905		12%
Jun 30, 2014		1,890		15%
Mar 31, 2014		1,859		16%
Dec 31, 2013		1,894		20%
Sep 30, 2013		1,696		24%
12 Months Ended
Sep 30, 2014		7,549		16%
Sep 30, 2013		6,533		26%

Visa Inc. Fiscal Fourth Quarter 2014 Financial Results October 29, 2014 Exhibit 99.2

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Fiscal Fourth Quarter 2014 Financial Results 2 Forward-Looking Statements various other factors, including those contained in our Annual Report on Form 10-K for the year ended September 30, 2013 and our other filings with the U.S. Securities and Exchange Commission. Additional information will also be available in our Annual Report on Form 10-K for the year ended September 30, 2014. You should not place undue reliance on such statements. Except as required by law, we do not intend to update or revise any forward–looking statements as a result of new information, future developments or otherwise.  •natural disasters, terrorist attacks, military or political conflicts, and public health emergencies; and •the failure to integrate acquisitions successfully or to effectively develop new products and businesses; •the loss of organizational effectiveness or key employees; •costs arising if Visa Europe were to exercise its right to require us to acquire all of its outstanding stock; •disruption of our transaction processing systems or the inability to process transactions efficiently; •account data breaches or increased fraudulent or other illegal activities involving Visa-branded cards or payment products; and •failure to maintain systems interoperability with Visa Europe; •system developments, such as: •industry developments, such as competitive pressure, rapid technological developments and disintermediation from our payments network; •economic fragility in the Eurozone and in the United States; •general economic, political and social conditions in mature and emerging markets globally; •general stock market fluctuations which may impact consumer spending; •material changes in cross-border activity, foreign exchange controls and fluctuations in currency exchange rates; and •material changes in our financial institution clients' performance compared to our estimates; •economic factors, such as: •new lawsuits, investigations or proceedings, or changes to our potential exposure in connection with pending lawsuits, investigations or proceedings; •developments in litigation and government enforcement, including those affecting interchange reimbursement fees, antitrust and tax; •rules capping debit interchange reimbursement rates and expanding financial institutions’ and merchants’ choices among debit payment networks promulgated under the Dodd-Frank Wall Street Reform and Consumer Protection Act; •increased regulation in jurisdictions outside of the United States and in other product categories; •increased government support of national payment networks outside the United States; and •increased regulation on consumer privacy, data use and security; •the impact of laws, regulations and marketplace barriers, including: By their nature, forward-looking statements: (i) speak only as of the date they are made; (ii) are not statements of historical fact or guarantees of future performance; and (iii) are subject to risks, uncertainties, assumptions or changes in circumstances that are difficult to predict or quantify.  Therefore, actual results could differ materially and adversely from our forward-looking statements due to a variety of factors, including the following: This presentation contains forward-looking statements within the meaning of the U.S. Private Securities Litigation Reform Act of 1995. Forward-looking statements generally are identified by words such as "believes," "estimates," "expects," "intends," "may," "projects," "could," "should," "will," "will continue" and other similar expressions. Examples of forward-looking statements include, but are not limited to, statements we make about our revenue, client incentives, operating margin, tax rate, earnings per share, free cash flow, and the growth of those items.

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Fiscal Fourth Quarter 2014 Financial Results 3 Solid Fiscal Fourth Quarter Results Solid operating revenues of $3.2 billion, up 9% over prior year Total as-converted class A common stock was reduced by 5.7 million shares, at an average price of $212.71 per share, using $1.2 billion of operating cash on hand Continued positive secular trends and spending momentum contributed to growth in key underlying business drivers Adjusted quarterly net income of $1.4 billion and adjusted diluted earnings per share of $2.18, up 14% and 17%, respectively, over prior year Note: See appendix for reconciliation of adjusted non-GAAP measures to the closest comparable GAAP measures.

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Fiscal Fourth Quarter 2014 Financial Results 4 Quarter ended June Payments Volume US$ in billions, nominal, except percentages YOY Change (constant) 12% 12% 12% YOY Change (nominal) 9% 10% 9% Note: Figures may not recalculate exactly due to rounding. Percentage changes are calculated based on unrounded numbers. From time to time, previously submitted volume information may be updated to reflect revised client submissions or other adjustments. Prior period updates are not material. Constant dollar growth rates exclude the impact of foreign currency fluctuations against the U.S. dollar in measuring performance. INTL 412 INTL 440 INTL 107 INTL 123 U.S. 571 U.S. 628 U.S. 270 U.S. 303 U.S. 300 U.S. 324 1,089 682 407 1,191 744 447 Total Visa Inc. Credit Debit 2013 2014 INTL 519 INTL 563 INTL = International

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Fiscal Fourth Quarter 2014 Financial Results 5 Quarter ended September Payments Volume US$ in billions, nominal, except percentages YOY Change (constant) 11% 12% 11% YOY Change (nominal) 10% 10% 10% Note: Current quarter payments volume and other select metrics are provided in the operational performance data supplement in the press release to provide more recent operating data. Service revenues continue to be recognized based on payments volume in the prior quarter. From time to time, reported payments volume information may be updated to reflect revised client submissions or other adjustments. Prior period updates are not material. Figures may not recalculate exactly due to rounding. Percentage changes are calculated based on unrounded numbers. INTL 420 INTL 457 INTL 109 INTL 127 U.S. 575 U.S. 631 U.S. 277 U.S. 313 U.S. 298 U.S. 319 1,104 697 407 1,215 769 446 Total Visa Inc. Credit Debit 2013 2014 INTL 529 INTL 584 INTL = International

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Fiscal Fourth Quarter 2014 Financial Results 6 Quarter ended September Transactions in millions, except percentages Note: Processed transactions represent transactions involving Visa, Visa Electron, Interlink and Plus cards processed on Visa’s networks. Total transactions represent payments and cash transactions as reported by Visa clients on their operating certificates. From time to time, previously submitted transaction information may be updated to reflect revised client submissions or other adjustments. Prior period updates are not material. Figures may not recalculate exactly due to rounding. Percentage changes are calculated based on unrounded numbers. Credit 38% YOY Change 9% 9% Debit 62% Credit 38% 22,940 15,491 25,073 16,943 Total Transactions Processed Transactions 2013 2014 Debit 62%

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Quarter ended June Total Cards in millions, except percentages Note: The data presented is based on results reported quarterly by Visa clients on their operating certificates. Estimates may be utilized if data is unavailable. From time to time, previously submitted card information may be updated to reflect revised client submissions or other adjustments. Prior period updates are not material. Figures may not recalculate exactly due to rounding. Percentage changes are calculated based on unrounded numbers. YOY Change 4% 9% 7% Fiscal Fourth Quarter 2014 Financial Results 7 2,144 798 1,346 2,298 831 1,467 Visa Inc. Credit Debit 2013 2014

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Revenue – Q4 2014 US$ in millions, except percentages Note: Figures may not recalculate exactly due to rounding. Percentages are calculated based on unrounded numbers. YOY Change 13% 9% 9% Fiscal 2014 % of Gross Revenues 19% 81% Fiscal Fourth Quarter 2014 Financial Results 8 3,653 (680) 2,973 3,997 (768) 3,229 Gross Revenues Client Incentives Net Operating Revenues Fiscal 2013 Fiscal 2014

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Fiscal Fourth Quarter 2014 Financial Results 9 Revenue Detail – Q4 2014 US$ in millions, except percentages Note: Figures may not recalculate exactly due to rounding. Percentage changes are calculated based on unrounded numbers. YOY Change 14% 4% 8% 16% 1,385 1,186 899 183 1,499 1,348 938 212 Service Revenues Data Processing Revenues International Transaction Revenues Other Revenues Fiscal 2013 Fiscal 2014

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Fiscal Fourth Quarter 2014 Financial Results 10 Adjusted Operating Margin – Q4 2014 US$ in millions, except percentages Note: Operating margin is calculated as operating income divided by net operating revenues. Figures may not recalculate exactly due to rounding. Percentage changes are calculated based on unrounded numbers. See appendix for reconciliation of adjusted non-GAAP measures to the closest comparable GAAP measures. YOY Change % 14% 9% 3ppts 2,973 1,222 1,751 59% 3,229 1,227 2,002 62% Net Operating Revenues Total Operating Expenses Operating Income Operating Margin Fiscal 2013 Fiscal 2014 –

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Fiscal Fourth Quarter 2014 Financial Results 11 Adjusted Operating Expenses – Q4 2014 US$ in millions, except percentages Note: Figures may not recalculate exactly due to rounding. Percentage changes are calculated based on unrounded numbers. See appendix for reconciliation of adjusted non-GAAP measures to the closest comparable GAAP measures. YOY Change 5% (27%) (1%) 18% 6% 2% NM 499 236 122 130 106 129 0 496 241 128 94 112 153 3 Personnel Marketing Network & Processing Professional Fees Depreciation & Amortization General & Administrative Litigation Provision Fiscal 2013 Fiscal 2014

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Fiscal Fourth Quarter 2014 Financial Results 12 Other Financial Results • Cash, cash equivalents and available-for-sale investment securities of $6.9 billion at the end of the fiscal fourth quarter • Free cash flow of $1.5 billion for the fiscal fourth quarter • Capital expenditures of $227 million during the fiscal fourth quarter

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Fiscal Fourth Quarter 2014 Financial Results 13 Financial Metrics for Fiscal Year 2015 • Constant dollar revenue growth of low double digits • Negative 2 ppts foreign currency impact Annual net revenue growth • 17.5% - 18.5% range Client incentives as % of gross revenues • Mid 60s • Low 30s • Mid teens Annual diluted class A common stock earnings per share growth • Greater than $6 billion Annual free cash flow Tax rate Annual operating margin Note: Fiscal full-year 2015 annual diluted earnings per share growth assumes an adjusted basis for fiscal full-year 2014.

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Appendix

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Fiscal Fourth Quarter 2014 Financial Results Reconciliation of Non-GAAP Financial Results US$ in millions, except percentages and per share data A-1 2014 2013 2014 2013 2014 2013 2014 2013 As reported $   1,677 $ 1,222 48% 59% 1,073 $     1,192 $ 1.72 $  1.85 $   Litigation provision (450) - 14% - 283 (3) - 0.45 - Adjusted $   1,227 $ 1,222 62% 59% 1,356 $     1,192 $ 2.18 $  1.85 $   Diluted weighted-average shares outstanding 623 644 2014 2013 2014 2013 2014 2013 2014 2013 As reported $   5,005 $ 4,539 61% 61% 5,438 $     4,980 $ 8.62 $  7.59 $   Litigation provision  (450) - 4% - 283 (3) - 0.45 - Adjusted $   4,555 $ 4,539 64% 61% 5,721 $     4,980 $ 9.07 $  7.59 $   Diluted weighted-average shares outstanding 631 656 Three Months Ended September 30, Operating Expenses Operating Margin (1),(2) Net Income Diluted Earnings per Share (2) (1) Operating margin is calculated as operating income divided by net operating revenues.  (3) The litigation provision adjustment to net income is shown net of tax. The tax impact is determined by applying applicable federal and state tax rates to the litigation provision. Twelve Months Ended September 30, Operating Expenses Operating Margin (1),(2) Net income Diluted Earnings per Share (2) (2) Figures in the table may not recalculate exactly due to rounding. Operating margin and diluted earnings per share figures are calculated based on unrounded numbers. During the fourth quarter of fiscal 2014, we recorded a provision of  $450 million and related tax benefits associated with litigation  covered by the retrospective responsibility plan ("litigation provision"). We believe the presentation of our adjusted financial results, excluding the litigation provision, provides a clearer understanding of our operating performance for the periods presented.

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Fiscal Fourth Quarter 2014 Financial Results Calculation of Free Cash Flow US$ in millions (1) (2)  A-2 Additions (+) / Reductions (-) to Net income Net income (as reported) 1,073 5,438 Capital Assets + Depreciation and amortization 112 435 - Capital expenditures (227) (553) (115) (118) Litigation + Litigation provision 453 453 + Return of settlement payments (1) - 1,056 - - (1,056) - Settlement payments (57) (58) + Settlement payments funded by litigation escrow 57 57 453 452 Share-based Compensation + Share-based compensation 42 172 Pension + Pension expense 4 10 Taxes + Income tax provision 477 2,286 - Income taxes paid (713) (2,656) (236) (370) Changes in Working Capital (2) +/- Changes in other working capital accounts 275 182 Total Free Cash Flow 1,496 5,766 Return of settlement payments into the litigation escrow (1) Three Months Ended September 30, 2014 Twelve Months Ended September 30, 2014 Includes changes in client incentives, trade receivable/payable, settlement receivable/payable and personnel incentives. Reflects the return of takedown payments into the litigation escrow account in connection with the interchange multidistrict litigation.

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Fiscal Fourth Quarter 2014 Financial Results A-3 Visa Cross-Border Volume Growth Disclosure The table below represents cross-border volume growth for cards carrying the Visa, Visa Electron, Interlink and PLUS brands, including Visa Europe data. Cross-border volume refers to payments and cash volume where the issuing country is different from the merchant country. Visa Inc. Visa Inc. + Visa Europe Nominal USD (1) Constant USD - Merchant Country (2) Nominal USD (1) Constant USD - Merchant Country (2) Constant USD - Issuing Country (3) September 30, 2014 9% 10% 14% 14% 16% June 30, 2014 6% 7% 14% 12% 14% March 31, 2014 5% 8% 11% 11% 13% December 31, 2013 11% 12% 15% 14% 16% September 30, 2013 9% 11% 15% 13% 16% September 30, 2014 8% 9% 14% 13% 15% September 30, 2013 10% 11% 14% 13% 15% Three Months Ended Twelve Months Ended Fiscal Fourth Quarter 2014 Financial Results (1) Nominal USD growth rates are calculated by converting cross-border volumes to U.S. dollars by applying an established U.S. dollar exchange rate for each currency based on the merchant country. (2) Constant USD - Merchant Country represents growth rates in cross-border volumes measured in the merchant country currency.  Visa Inc. Constant USD growth is calculated using this method. (3) Constant USD - Issuing Country represents growth rates in cross-border volumes measured in the issuing country currency.