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MarketScreener Homepage  >  Equities  >  Nyse  >  Visa    V

VISA

(V)
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Visa : Q4 2020 Earnings Release

10/28/2020 | 03:20pm EST

Visa Inc. Reports Fiscal Fourth Quarter and Full-Year 2020 Results

San Francisco, CA, October 28, 2020 - Visa Inc. (NYSE: V)

Fiscal Fourth Quarter Results:

  • GAAP net income of $2.1B or $0.97 per share and non-GAAP net income of $2.5B or $1.12 per share
  • Net revenues of $5.1B, a decrease of 17% or approximately 11% with service revenues recognized on current quarter payments volume

Fiscal Full-Year Results:

  • GAAP net income of $10.9B or $4.89 per share and non-GAAP net income of $11.2B or $5.04 per share
  • Net revenues of $21.8B, a decrease of 5%

Other Highlights:

  • Payments volume, cross-border volume and processed transactions growth all improved through the quarter and were at varying stages of recovery. Full-year business drivers were all impacted by COVID-19 starting in March, with an improving trend exiting September.
  • Returned $2.3B and $10.8B of capital to shareholders for Q4 and full-year, respectively, in the form of share repurchases and dividends
  • The board of directors increased Visa's quarterly cash dividend to $0.32 per share

Q4 and Full-Year 2020 Results

(Ended September 30, 2020)

Q4 2020

Full-Year 2020

In billions, except percentages and per share data. % change is

USD

% Change

USD

% Change

calculated over the comparable prior-year period.

Net Revenues

$5.1

(17%)

$21.8

(5%)

GAAP Net Income

$2.1

(29%)

$10.9

(10%)

GAAP Earnings Per Share

$0.97

(28%)

$4.89

(8%)

Non-GAAP Net Income(1)

$2.5

(25%)

$11.2

(9%)

Non-GAAP Earnings Per Share(1)

$1.12

(23%)

$5.04

(7%)

  1. Non-GAAPresults exclude special items, equity investment gains and losses, amortization of acquired intangible assets and non-recurringacquisition-related costs.

Q4 and Full-Year 2020 Key Business Drivers

(YoY increase / (decrease), volume in constant dollars)

Q4 2020

Full-Year 2020

Payments Volume

4%

2%

Cross-Border Volume Excluding Intra Europe(1)

(41%)

(22%)

Cross-Border Volume Total

(29%)

(16%)

Processed Transactions

3%

2%

  1. Cross-bordervolume excluding transactions within Europe.

Alfred F. Kelly, Jr., Chairman

and Chief Executive Officer,

Visa Inc., commented on the results:

"While our business drivers and financial results were impacted by COVID-19 in 2020, we've made significant progress in advancing our growth strategy. Visa drove the adoption of eCommerce and tap to pay to accelerate cash digitization, successfully unlocked new flows by expanding Visa Direct and B2B partnerships, and facilitated client innovation through our value added services. As the world turns increasingly to digital payments, we see tremendous opportunity for growth. We'll remain thoughtful in our investments as we advance our strategy to enable the movement of money for everyone, everywhere."

Fiscal Fourth Quarter 2020 - Financial Highlights

GAAP net income in the fiscal fourth quarter was $2.1 billion or $0.97 per share, decreases of 29% and 28%, respectively, over prior year's results. Current year's results included $357 million from special items related to the remeasurement of deferred tax balances and the resolution of a tax item, $39 million of net gains from equity investments and $17 million related to the amortization of acquired intangible assets and non-recurringacquisition-related costs. Prior year's results included a special item of $370 million for a litigation provision associated with the interchange multi-district litigation ("MDL") case, $42 million of net gains from equity investments and $5 million related to the amortization of acquired intangible assets and non-recurringacquisition-related costs. Excluding these items and the related tax impacts, non-GAAP net income for the quarter was $2.5 billion or $1.12 per share, decreases of 25% and 23%, respectively, over prior year's results (refer to the accompanying financial tables for further details and a reconciliation of the non-GAAP measures presented). Non-GAAP earnings per share decrease was approximately 23% on a constant-dollar basis. All references to earnings per share assume fully-diluted class A share count.

Net revenues in the fiscal fourth quarter were $5.1 billion, a decrease of 17%, primarily driven by the year-over-year declines in prior quarter payments volume and current quarter cross-border volume, partially offset by growth in processed transactions. Net revenues decrease was approximately 17% on a constant-dollar basis. Had we recognized service revenues on current quarter payments volume and other revenue components remained unchanged, net revenues would have decreased approximately 11%.

Payments volume for the three months ended June 30, 2020, on which fiscal fourth quarter service revenue is recognized, decreased 10% over the prior year on a constant-dollar basis.

Payments volume for the three months ended September 30, 2020, increased 4% over the prior year on a constant-dollar basis.

Cross-border volume excluding transactions within Europe, which drive our international transaction revenues, declined 41% on a constant-dollar basis for the three months ended September 30, 2020. Total cross-border volume on a constant-dollar basis declined 29% in the quarter.

Total processed transactions, which represent transactions processed by Visa, for the three months ended September 30, 2020, were 37.4 billion, a 3% increase over the prior year, led by domestic transactions.

Fiscal fourth quarter service revenues were $2.2 billion, a decrease of 13% 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 grew 4% over the prior year to $2.9 billion. International transaction revenues declined 38% over the prior year to $1.3 billion. Other revenues of $361 million rose 5% over the prior year. Client incentives, a contra-revenue item, were $1.7 billion and represent 25.0% of gross revenues.

GAAP operating expenses were $2.0 billion for the fiscal fourth quarter, an 18% decrease over the prior year's results, including the amortization of acquired intangible assets and non-recurringacquisition-related costs in the current and prior year and the special item related to the litigation provision associated with the MDL case in the prior year. Excluding these operating expense items, non-GAAP operating expenses decreased 4% over the prior year, primarily driven by general and administrative, professional fees and marketing expenses.

GAAP non-operating expense was $87 million for the fiscal fourth quarter, including $39 million of net equity investment gains. Excluding this item, non-GAAPnon-operating expense was $126 million.

GAAP effective income tax rate was 30.0% for the quarter ended September 30, 2020, including the special items related to the remeasurement of deferred tax balances and the resolution of a tax item as well as the tax impacts of the net equity investment gains, amortization of acquired intangible assets and non-recurringacquisition-related costs. Excluding these items, the non-GAAP effective income tax rate was 18.3% for the quarter ended September 30, 2020.

Cash, cash equivalents and investment securities were $20.3 billion at September 30, 2020.

The weighted-average number of diluted shares of class A common stock outstanding was 2.21 billion for the quarter ended September 30, 2020.

2

Fiscal Full-Year 2020 - Financial Highlights

GAAP net income in the fiscal full-year 2020 was $10.9 billion or $4.89 per share, decreases of 10% and 8%, respectively, over prior year's results. Current year's results included $357 million from special items related to the remeasurement of deferred tax balances and the resolution of a tax item, $101 million of net gains from equity investments and $63 million related to the amortization of acquired intangible assets and non-recurringacquisition-related costs. Prior year's results included a special item of $370 million for a litigation provision associated with the MDL case, $131 million of net gains from equity investments and $10 million related to the amortization of acquired intangible assets and non-recurringacquisition-related costs. Excluding these items and the related tax impacts, non-GAAP net income for the full-year was $11.2 billion or $5.04 per share, decreases of 9% and 7%, respectively, over prior year's results (refer to the accompanying financial tables for further details and a reconciliation of the non- GAAP measures presented). Non-GAAP earnings per share decrease was approximately 6% on a constant-dollar basis.

Net revenues in the fiscal full-year 2020 were $21.8 billion, a decrease of 5%, driven by the year-over-year changes in payments volume, cross-border volume and processed transactions. These key business drivers began to be significantly impacted by COVID-19 in March and are exiting the fiscal year on an improving trajectory. Net revenues decrease was approximately 4% on a constant-dollar basis.

Payments volume for the twelve months ended September 30, 2020, increased 2% over the prior year on a constant-dollar basis.

Cross-border volume excluding transactions within Europe, which drive our international transaction revenues, declined 22% on a constant-dollar basis for the twelve months ended September 30, 2020. Total cross-border volume on a constant-dollar basis declined 16% for the fiscal year.

Total processed transactions, which represent transactions processed by Visa, for the twelve months ended September 30, 2020, were 140.8 billion, a 2% increase over the prior year.

Fiscal full-year 2020 service revenues were $9.8 billion, an increase of 1% over the prior year. Data processing revenues rose 6% over the prior year to $11.0 billion. International transaction revenues declined 19% over the prior year to $6.3 billion. Other revenues of $1.4 billion rose 9% over the prior year. Client incentives, a contra-revenue item, were $6.7 billion and represent 23.4% of gross revenues.

GAAP operating expenses were $7.8 billion for the fiscal full-year 2020, a 3% decrease over the prior year's results, including the amortization of acquired intangible assets and non-recurringacquisition-related costs in the current and prior year and the special item related to the litigation provision associated with the MDL case in the prior year. Excluding these operating expense items, non-GAAP operating expenses increased 1% over the prior year, primarily driven by an increase in personnel expenses mostly offset by decreases in marketing and general and administrative expenses.

GAAP non-operating expense was $291 million for the fiscal full-year 2020, including $101 million of net equity investment gains. Excluding this item, non-GAAPnon-operating expense was $392 million.

GAAP effective income tax rate was 21.2% for the twelve months ended September 30, 2020, including the special items related to the remeasurement of deferred tax balances and the resolution of a tax item as well as the tax impacts from net equity investment gains, amortization of acquired intangible assets and non-recurringacquisition-related costs. Excluding the tax impacts from these items, the non-GAAP effective income tax rate was 18.6% for the fiscal full-year ended September 30, 2020.

The weighted-average number of diluted shares of class A common stock outstanding was 2.22 billion for the fiscal full-year ended September 30, 2020.

3

Other Notable Items

Visa continues to monitor the COVID-19 impact globally. Many countries had stable to positive year-over-year domestic spending growth in the fiscal fourth quarter. Overall cross-border spending remains depressed, led by travel spending, as the majority of borders remain closed. Card not present excluding travel in both domestic and cross-border volume continued to grow at elevated levels even with the gradual recovery of card present spend.

On August 17, 2020, Visa issued fixed-rate senior notes in an aggregate principal amount of $3.25 billion with maturities ranging between 7 and 30 years, and interest rates from 0.75% to 2.0%. The weighted-average interest rate is 1.53%. The net proceeds from the offering of the 2027 Notes will be used to fund eligible green projects and the net proceeds from the offering of the 2031 Notes and the 2050 Notes will be used for general corporate purposes.

At the closing of the acquisition of Visa Europe in June 2016, Visa Inc. issued preferred stock to cover certain expenses incurred by Visa in defending and resolving multilateral interchange fee-related claims asserted in the UK and Europe. Visa is required to undertake periodic release assessments to determine if value should be released from the series B and C preferred stock. The first such release assessment occurred on June 21, 2020, the 4th anniversary of the closing of the Visa Europe acquisition. On September 24, 2020, Visa released approximately $7.3 billion from the series B and C convertible participating preferred stock. This did not affect the fully diluted share count.

On October 27, 2020, Visa announced it signed a definitive agreement to acquire YellowPepper. We believe this acquisition will accelerate the adoption of Visa's "network of networks" strategy in Latin America and the Caribbean by significantly reducing the time-to-market and cost for issuers and processors associated with accessing innovative and interoperable solutions, regardless of who owns or operates the payment rails.

During the three months ended September 30, 2020, Visa repurchased 8.2 million shares of class A common stock at an average price of $197.73 per share for $1.6 billion. In the twelve months ended September 30, 2020, Visa repurchased a total of 44.2 million shares of class A common stock at an average price of $183.30 per share for $8.1 billion. The Company had $5.4 billion of remaining authorized funds for share repurchase as of September 30, 2020.

On October 23, 2020, the board of directors declared an increase to Visa's quarterly cash dividend to $0.32 per share of class A common stock (determined in the case of class B and C common stock and series A, B and C convertible participating preferred stock on an as-converted basis) payable on December 1, 2020, to all holders of record as of November 13, 2020.

Financial Outlook for Fiscal Full-Year 2021

Given the continuing impact of COVID-19 and the significant uncertainty in the global economy, it is difficult to reasonably estimate the Company's annual results; therefore we are not providing a fiscal full-year 2021 outlook at this time.

4

Fiscal Fourth Quarter and Full-Year 2020 Earnings Results 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.

Forward-Looking Statements

This press release contains forward-looking statements within the meaning of the U.S. Private Securities Litigation Reform Act of 1995 that relate to, among other things, the impact on our underlying business drivers and other volume and transaction trends as a result of COVID-19, our future operations, prospects, developments, strategies and business growth. Forward-looking statements generally are identified by words such as "anticipates," "estimates," "expects," "intends," "may," "projects," "outlook," "could," "should," "will," "continue" and other similar expressions. All statements other than statements of historical fact could be forward- looking statements, which speak only as of the date they are made, are not guarantees of future performance and are subject to certain risks, uncertainties and other factors, many of which are beyond our control and are difficult to predict.

Actual results could differ materially from those expressed in, or implied by, our forward-looking statements due to a variety of factors, including, but not limited to:

  • impact of global economic, political, market, health and social events or conditions, including the impact of COVID-19;
  • increased oversight and regulation of the global payments industry and our business;
  • impact of government-imposed obligations and/or restrictions on international payment systems;
  • outcome of tax, litigation and governmental investigation matters;
  • increasingly intense competition in the payments industry, including competition for our clients and merchants;
  • proliferation and continuous evolution of new technologies and business models;
  • our ability to maintain relationships with our clients, acquirers, processors, merchants and other third parties;
  • brand or reputational damage;
  • exposure to loss or illiquidity due to settlement guarantees;
  • the impact of the United Kingdom's withdrawal from the European Union;
  • a disruption, failure, breach or cyber-attack of our networks or systems;
  • risks, uncertainties and the failure to achieve the anticipated benefits with respect to our acquisitions and other strategic investments; and
  • other factors described in our filings with the U.S. Securities and Exchange Commission, including our Annual Report on Form 10-K for the year ended September 30, 2019, and our subsequent reports on Forms 10-Q and 8-K.

Except as required by law, we do not intend to update or revise any forward-looking statements as a result of new information, future events or otherwise.

About Visa Inc.

Visa Inc. (NYSE: V) is the world's leader in digital payments. Our mission is to connect the world through the most innovative, reliable and secure payment network - enabling individuals, businesses and economies to thrive. Our advanced global processing network, VisaNet, provides secure and reliable payments around the world, and is capable of handling more than 65,000 transaction messages a second. Our relentless focus on innovation is a catalyst for the rapid growth of digital commerce on any device for everyone, everywhere. As the world moves from analog to digital, Visa is applying our brand, products, people, network and scale to reshape the future of commerce. For more information, visit usa.visa.com/about-visa.html, usa.visa.com/visa- everywhere/blog.html and @VisaNews.

Contacts

Investor Relations

Media Relations

Mike Milotich, 650-432-7644

Andy Gerlt, 415-805-5070

InvestorRelations@visa.com

Press@visa.com

5

Fiscal Fourth Quarter 2020 - Financial Summary

Q4 FISCAL 2020 INCOME STATEMENT SUMMARY

(in millions, except percentages and per share

Three Months Ended

YoY Change

September 30, 2020

data)

GAAP

Non-GAAP

GAAP

Non-GAAP

Re ve nues

Service revenues

$

2,217

$

2,217

(13%)

(13%)

Data processing revenues

2,875

2,875

4%

4%

International transaction revenues

1,346

1,346

(38%)

(38%)

Other revenues

361

361

5%

5%

Client incentives

(1,698)

(1,698)

0%

0%

Net revenues

5,101

5,101

(17%)

(17%)

Operating Expenses

Personnel

922

919

6%

6%

Marketing

288

288

(6%)

(6%)

Network and processing

191

190

(1%)

(2%)

Professional fees

104

103

(30%)

(31%)

Depreciation and amortization

196

184

14%

10%

General and administrative

256

256

(25%)

(25%)

Litigation provision

2

2

(99%)

NM

Total operating expenses

1,959

1,942

(18%)

(4%)

Operating income

3,142

3,159

(16%)

(23%)

Non-operating expense

(87)

(126)

252%

91%

Effective tax rate

30.0%

18.3%

12 ppt

0 ppt

Net income

$

2,137

$

2,476

(29%)

(25%)

Earnings per share

$

0 .97

$

1 .12

(28%)

(23%)

NM - Not Meaningful

Q4 FISCAL 2020 KEY BUSINESS DRIVERS

YoY Change

Constant

Nominal

Payments volume

4%

4%

Cross-border volume excluding intra-Europe(1)

(41%)

(41%)

Cross-border volume total

(29%)

(28%)

Processed transactions

3%

3%

  1. Cross-bordervolume excluding transactions within Europe.

6

Fiscal Full-Year 2020 - Financial Summary

FISCAL FULL-YEAR 2020 INCOME STATEMENT SUMMARY

Twelve Months Ended

(in millions, except percentages and per shareSeptember 30, 2020YoY Change data)

GAAP Non-GAAP GAAP Non-GAAP

Re ve nue s

Service revenues

$

9,804

$

9,804

1%

1%

Data processing revenues

10,975

10,975

6%

6%

International transaction revenues

6,299

6,299

(19%)

(19%)

Other revenues

1,432

1,432

9%

9%

Client incentives

(6,664)

(6,664)

8%

8%

Net revenues

21,846

21,846

(5%)

(5%)

Operating Expenses

Personnel

3,785

3,777

10%

10%

Marketing

971

971

(12%)

(12%)

Network and processing

727

723

1%

0%

Professional fees

408

404

(10%)

(10%)

Depreciation and amortization

767

720

17%

11%

General and administrative

1,096

1,096

(8%)

(8%)

Litigation provision

11

11

(97%)

(63%)

Total operating expenses

7,765

7,702

(3%)

1%

Operating income

14,081

14,144

(6%)

(8%)

Non-operating expense

(291)

(392)

148%

59%

Effective tax rate

21.2%

18.6%

2 ppt

0 ppt

Net income

$

10,866

$

11,193

(10%)

(9%)

Earnings per share

$

4.89

$

5 .04

(8%)

(7%)

FISCAL FULL-YEAR 2020 KEY BUSINESS DRIVERS

YoY Change

Constant

Nominal

Payments volume

2%

0%

Cross-border volume excluding intra-Europe(1)

(22%)

(23%)

Cross-border volume total

(16%)

(16%)

Processed transactions

2%

2%

  1. Cross-bordervolume excluding transactions within Europe.

7

Visa Inc. Consolidated Balance Sheets (unaudited)

September 30,

20202019

(in millions, except par value data)

Assets

Cash and cash equivalents

$

Restricted cash equivalents-U.S. litigation escrow

Investment securities

Settlement receivable

Accounts receivable

Customer collateral

Current portion of client incentives

Prepaid expenses and other current assets

Total current assets

Investment securities

Client incentives

Property, equipment and technology, net

Goodwill

Intangible assets, net

Other assets

Total assets

$

Liabilities

Accounts payable

$

Settlement payable

Customer collateral

Accrued compensation and benefits

Client incentives

Accrued liabilities

Current maturities of debt

Accrued litigation

Total current liabilities

Long-term debt

Deferred tax liabilities

Other liabilities

Total liabilities

Equity

Preferred stock, $0.0001 par value, 25 shares authorized and 5 shares issued and outstanding as follows:

Series A convertible participating preferred stock, less than one and no shares issued and outstanding at

September 30, 2020 and 2019 (the "series A preferred stock"), respectively

Series B convertible participating preferred stock, 2 shares issued and outstanding at September 30, 2020 and

2019 (the "UK&I preferred stock")

Series C convertible participating preferred stock, 3 shares issued and outstanding at September 30, 2020 and

2019 (the "Europe preferred stock")

Class A common stock, $0.0001 par value, 2,001,622 shares authorized, 1,683 and 1,718 shares issued and outstanding at

September 30, 2020 and 2019, respectively

Class B common stock, $0.0001 par value, 622 shares authorized, 245 shares issued and outstanding at September 30,

2020 and 2019

Class C common stock, $0.0001 par value, 1,097 shares authorized, 11 shares issued and outstanding at September 30,

2020 and 2019

Right to recover for covered losses

Additional paid-in capital

Accumulated income

Accumulated other comprehensive income (loss), net:

Investment securities

Defined benefit pension and other postretirement plans

Derivative instruments

Foreign currency translation adjustments

Total accumulated other comprehensive income (loss), net

Total equity

Total liabilities and equity

$

16,289

$

7,838

901

1,205

3,752

4,236

1,264

3,048

1,618

1,542

1,850

1,648

1,214

741

757

712

27,645

20,970

231

2,157

3,175

2,084

2,737

2,695

15,910

15,656

27,808

26,780

3,413

2,232

80,919

$

72,574

174

$

156

1,736

3,990

1,850

1,648

821

796

4,176

3,997

1,840

1,625

2,999

-

914

1,203

14,510

13,415

21,071

16,729

5,237

4,807

3,891

2,939

44,709

37,890

2,437

-

1,106

2,285

1,543

3,177

-

-

-

-

-

-

(39)

(171)

16,721

16,541

14,088

13,502

3

6

(196)

(192)

(291)

199

838

(663)

354

(650)

36,210

34,684

80,919

$

72,574

8

Visa Inc. Consolidated Statements of Operations (unaudited)

Three Months Ended

Twelve Months Ended

September 30,

September 30,

2020

2019

2020

2019

(in millions, except per share data)

Net revenues

$

5,101

$

6,137

$

21,846

$

22,977

Operating Expenses

Personnel

922

871

3,785

3,444

Marketing

288

306

971

1,105

Network and processing

191

193

727

721

Professional fees

104

149

408

454

Depreciation and amortization

196

172

767

656

General and administrative

256

341

1,096

1,196

Litigation provision

2

370

11

400

Total operating expenses

1,959

2,402

7,765

7,976

Operating income

3,142

3,735

14,081

15,001

Non-operating Income (Expense)

Interest expense, net

(145)

(120)

(516)

(533)

Investment income and other

58

96

225

416

Total non-operating income (expense)

(87)

(24)

(291)

(117)

Income before income taxes

3,055

3,711

13,790

14,884

Income tax provision

918

686

2,924

2,804

Net income

$

2,137

$

3,025

$

10,866

$

12,080

Basic Earnings Per Share

Class A common stock

$

0.97

$

1.34

$

4.90

$

5.32

Class B common stock

$

1.57

$

2.19

$

7.94

$

8.68

Class C common stock

$

3.88

$

5.38

$

19.58

$

21.30

Basic Weighted-average Shares Outstanding

Class A common stock

1,685

1,724

1,697

1,742

Class B common stock

245

245

245

245

Class C common stock

11

11

11

12

Diluted Earnings Per Share

Class A common stock

$

0.97

$

1.34

$

4.89

$

5.32

Class B common stock

$

1.57

$

2.19

$

7.93

$

8.66

Class C common stock

$

3.87

$

5.37

$

19.56

$

21.26

Diluted Weighted-average Shares Outstanding

Class A common stock

2,208

2,253

2,223

2,272

Class B common stock

245

245

245

245

Class C common stock

11

11

11

12

9

Visa Inc. Consolidated Statements of Cash Flows (unaudited)

For the Years Ended

September 30,

2020

2019

(in millions)

Operating Activities

Net income

$

10,866

$

12,080

Adjustments to reconcile net income to net cash provided by (used in) operating activities:

Client incentives

6,664

6,173

Share-based compensation

416

407

Depreciation and amortization of property, equipment, technology and intangible assets

767

656

Deferred income taxes

307

214

VE territory covered losses incurred

(37)

(172)

Other

(145)

(271)

Change in operating assets and liabilities:

Settlement receivable

1,858

(1,533)

Accounts receivable

(43)

(333)

Client incentives

(8,081)

(6,430)

Other assets

(402)

(310)

Accounts payable

21

(24)

Settlement payable

(2,384)

1,931

Accrued and other liabilities

923

627

Accrued litigation

(290)

(231)

Net cash provided by (used in) operating activities

10,440

12,784

Investing Activities

Purchases of property, equipment and technology

(736)

(756)

Investment securities:

Purchases

(2,075)

(2,653)

Proceeds from maturities and sales

4,510

3,996

Acquisitions, net of cash and restricted cash acquired

(77)

(699)

Purchases of / contributions to other investments

(267)

(501)

Other investing activities

72

22

Net cash provided by (used in) investing activities

1,427

(591)

Financing Activities

Repurchase of class A common stock

(8,114)

(8,607)

Proceeds from issuance of senior notes

7,212

-

Dividends paid

(2,664)

(2,269)

Payment of deferred purchase consideration related to the Visa Europe acquisition

-

(1,236)

Cash proceeds from issuance of common stock under employee equity plans

190

162

Restricted stock and performance-based shares settled in cash for taxes

(160)

(111)

Payments to settle derivative instruments

(333)

-

Other financing activities

(99)

-

Net cash provided by (used in) financing activities

(3,968)

(12,061)

Effect of exchange rate changes on cash, cash equivalents, restricted cash and restricted cash equivalents

440

(277)

Increase (decrease) in cash, cash equivalents, restricted cash and restricted cash equivalents

8,339

(145)

Cash, cash equivalents, restricted cash and restricted cash equivalents at beginning of year

10,832

10,977

Cash, cash equivalents, restricted cash and restricted cash equivalents at end of year

$

19,171

$

10,832

Supplemental Disclosure

Cash paid for income taxes, net

$

2,671

$

2,648

Interest payments on debt

$

537

$

537

Accruals related to purchases of property, equipment and technology

$

38

$

95

10

Visa Inc. Fiscal 2020 and 2019 Quarterly Results of Operations (unaudited)

Fiscal 2020 Quarter Ended

Fiscal 2019

Quarter Ended

September 30,

June 30,

March 31,

December 31,

September 30,

2020

2020

2020

2019

2019

(in millions)

Net revenues

$

5,101

$

4,837

$

5,854

$

6,054

$

6,137

Operating Expenses

Personnel

922

941

940

982

871

Marketing

288

174

235

274

306

Network and processing

191

172

183

181

193

Professional fees

104

95

103

106

149

Depreciation and amortization

196

197

192

182

172

General and administrative

256

258

269

313

341

Litigation provision

2

1

8

-

370

Total operating expenses

1,959

1,838

1,930

2,038

2,402

Operating income

3,142

2,999

3,924

4,016

3,735

Non-operating Income (Expense)

Interest expense, net

(145)

(142)

(118)

(111)

(120)

Investment income and other

58

75

23

69

96

Total non-operating income (expense)

(87)

(67)

(95)

(42)

(24)

Income before income taxes

3,055

2,932

3,829

3,974

3,711

Income tax provision

918

559

745

702

686

Net income

$

2,137

$

2,373

$

3,084

$

3,272

$

3,025

11

Visa Inc. Reconciliation of Non-GAAP Financial Results (unaudited)

We use non-GAAP financial measures of our performance which exclude certain items which we believe are not representative of our continuing operations, as they may be non-recurring or have no cash impact, and may distort our longer-term operating trends. We consider non-GAAP measures useful to investors because they provide greater transparency into management's view and assessment of our ongoing operating performance. Starting in fiscal 2020, we revised our non-GAAP methodology to also exclude the impact of gains and losses on our equity investments, amortization of acquired intangible assets and acquisition-related costs for acquisitions that closed in fiscal 2019 and subsequent periods. Prior year amounts have been restated to conform to our current presentation.

    • Gains and losses on equity investments. Gains and losses on equity investments include periodic non-cash fair value adjustments and gains and losses upon sale of an investment. These long-term investments are strategic in nature and are primarily private company investments. Gains and losses and the related tax impacts associated with these investments are tied to the performance of the companies that we invest in and therefore do not correlate to the underlying performance of our business.
  • Amortization of acquired intangible assets. Amortization of acquired intangible assets consists of amortization of intangible assets such as developed technology, customer relationships and brands acquired in connection with business combinations executed beginning in fiscal 2019. Amortization charges for our acquired intangible assets are non-cash and are significantly affected by the timing, frequency and size of our acquisitions, rather than our core operations. As such, we have excluded this amount and the related tax impact to facilitate an evaluation of our current operating performance and comparison to our past operating performance.
  • Acquisition-relatedcosts. Acquisition-related costs consist primarily of one-time transaction and integration costs associated with our business combinations. These costs include professional fees, technology integration fees, restructuring activities and other direct costs related to the purchase and integration of acquired entities. It also includes retention equity and deferred equity compensation when they are agreed upon as part of the purchase price of the transaction but are required to be recognized as expense post-combination. We have excluded these amounts and the related tax impacts as the expenses are recognized for a limited duration and do not reflect the underlying performance of our business.
    • Litigation provision. During the three and twelve months ended September 30, 2019, we recorded a litigation provision of $370 million and related tax benefit of $83 million associated with the interchange multidistrict litigation. The tax impact is determined by applying applicable federal and state tax rates to the litigation provision. Under the U.S. retrospective responsibility plan, we recover the monetary liabilities related to the U.S. covered litigation through a reduction to the conversion rate of our class B common stock to shares of class A common stock.
    • Remeasurement of deferred tax balances. During the three and twelve months ended September 30, 2020, in connection with the UK enacted legislation that repealed the previous tax rate reduction from 19% to 17% that was effective on April 1, 2020, we remeasured our net deferred tax liabilities as of the enactment date, resulting in the recognition of a non-recurring,non-cash income tax expense of $329 million.
    • Resolution of a tax item. During the three and twelve months ended September 30, 2020, we resolved a long- outstanding tax matter, dating back more than 12 years, relating to certain tax filing positions taken prior to our initial public offering. The resolution of this matter resulted in the recognition of a one-time charge to income tax expense of $28 million, which we believe is not representative of our continuing operations and ongoing effective tax rate.

12

Visa Inc. Reconciliation of Non-GAAP Financial Results - continued (unaudited)

Non-GAAP operating expenses, non-operating income (expense), income tax provision, effective income tax rate, net income and diluted earnings per share should not be relied upon as substitutes for measures calculated in accordance with U.S. GAAP. The following tables reconcile our as-reported financial measures, calculated in accordance with U.S. GAAP, to the respective non-GAAP financial measures for the three and twelve months ended September 30, 2020 and 2019.

Three Months Ended

September 30, 2020

Non-

Effective

Diluted

operating

Operating

Income

Income Tax

Income Tax

Earnings Per

Expenses

(Expense)

Provision

Rate(1)

Net Income

Share(1)

(in millions, except percentages and per share data)

As reported

$

1,959

$

(87)

$

918

30.0

%

$

2,137

$

0.97

(Gains) Losses on equity investments, net

-

(39)

(9)

(30)

(0.01)

Amortization of acquired intangible assets

(11)

-

3

8

-

Acquisition-related costs

(6)

-

2

4

-

Remeasurement of deferred tax balances

-

-

(329)

329

0.15

Resolution of a tax item

-

-

(28)

28

0.01

Non-GAAP

$

1,942

$

(126)

$

557

18.3

%

$

2,476

$

1.12

Twelve Months Ended

September 30, 2020

Non-

Effective

Diluted

operating

Operating

Income

Income Tax

Income Tax

Earnings Per

Expenses

(Expense)

Provision

Rate(1)

Net Income

Share(1)

(in millions, except percentages and per share data)

As reported

$

7,765

$

(291)

$

2,924

21.2

%

$

10,866

$

4.89

(Gains) Losses on equity investments, net

-

(101)

(23)

(78)

(0.04)

Amortization of acquired intangible assets

(46)

-

11

35

0.02

Acquisition-related costs

(17)

-

4

13

0.01

Remeasurement of deferred tax balances

-

-

(329)

329

0.15

Resolution of a tax item

-

-

(28)

28

0.01

Non-GAAP

$

7,702

$

(392)

$

2,559

18.6

%

$

11,193

$

5.04

Three Months Ended

September 30, 2019

Non-

Effective

Diluted

operating

Operating

Income

Income Tax

Income Tax

Earnings Per

Expenses

(Expense)

Provision

Rate(1)

Net Income

Share(1)

(in millions, except percentages and per share data)

As reported

$

2,402

$

(24)

$

686

18.5

%

$

3,025

$

1.34

(Gains) Losses on equity investments, net

-

(42)

(9)

(33)

(0.01)

Amortization of acquired intangible assets

(4)

-

1

3

-

Acquisition-related costs

(1)

-

-

1

-

Litigation provision

(370)

-

83

287

0.13

Non-GAAP

$

2,027

$

(66)

$

761

18.8

%

$

3,283

$

1.46

13

Visa Inc. Reconciliation of Non-GAAP Financial Results - continued (unaudited)

Twelve Months Ended

September 30, 2019

Non-

Effective

Diluted

operating

Operating

Income

Income Tax

Income Tax

Earnings Per

Expenses

(Expense)

Provision

Rate(1)

Net Income

Share(1)

(in millions, except percentages and per share data)

As reported

$

7,976

$

(117)

$

2,804

18.8

%

$

12,080

$

5.32

(Gains) Losses on equity investments, net

-

(131)

(30)

(101)

(0.04)

Amortization of acquired intangible assets

(6)

-

1

5

-

Acquisition-related costs

(4)

-

1

3

-

Litigation provision

(370)

-

83

287

0.13

Non-GAAP

$

7,596

$

(248)

$

2,859

18.9

%

$

12,274

$

5.40

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

14

Operational Performance Data

The tables below provide information regarding the available operational results for the 3 months ended September 30, 2020, as well as the prior four quarterly reporting periods and the 12 months ended September 30, 2020 and 2019, for cards and other form factors carrying the Visa, Visa Electron, V PAY and Interlink brands.

1. Branded Volume and Transactions

The tables present regional total volume, payments volume, and cash volume, and the number of payments transactions, cash transactions, accounts and cards for cards and other form factors carrying the Visa, Visa Electron, V PAY and Interlink brands and excludes Europe co-badged volume and transactions for all periods. 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, 2020

Total

Growth

Growth

Payments

Growth

Growth

Payments

Cash

Growth

Growth

Cash

Volume

(Nominal

(Constant

Volume

(Nominal

(Constant

Transactions

Volume

(Nominal

(Constant

Transactions Accounts

Cards

($ billions)

USD)

USD)

($ billions)

USD)

USD)

(millions)

($ billions)

USD)

USD)

(millions)

(millions)

(millions)

All Visa Credit & Debit

Asia Pacific

$545

(10.6%)

(11.2%)

$452

(8.5%)

(9.6%)

8,003

$93

(19.8%)

(18.3%)

820

3

4

Canada

75

(3.4%)

(2.4%)

69

(3.5%)

(2.5%)

1,055

6

(2.4%)

(1.3%)

10

63

62

CEMEA

301

(2.3%)

4.0%

141

6.3%

14.8%

6,406

159

(8.9%)

(4.0%)

1,108

3

3

LAC

201

(16.4%)

(0.1%)

94

(12.4%)

6.2%

3,652

106

(19.7%)

(5.0%)

975

2

2

US

1,262

8.0%

8.0%

1,097

7.5%

7.5%

18,853

165

11.8%

11.8%

813

6

6

Europe

613

5.9%

3.6%

495

12.2%

9.1%

11,680

117

(14.3%)

(14.6%)

741

19

22

Visa Inc.

2,995

0.5%

1.9%

2,349

3.5%

4.0%

49,649

647

(9.4%)

(5.3%)

4,467

96

101

Visa Credit Programs

US

$500

(8.7%)

(8.7%)

$493

(7.4%)

(7.4%)

5,865

$6

(56.0%)

(56.0%)

10

-

-

International

667

(12.6%)

(11.6%)

628

(11.8%)

(10.8%)

10,989

39

(24.1%)

(23.5%)

164

976

1,124

Visa Inc.

1,166

(11.0%)

(10.4%)

1,121

(9.9%)

(9.3%)

16,854

45

(31.1%)

(30.7%)

174

976

1,124

Visa Debit Programs

US

$762

22.7%

22.7%

$603

23.7%

23.7%

12,988

$159

19.1%

19.1%

803

-

-

International

1,067

1.6%

4.9%

624

16.5%

17.1%

19,807

443

(14.0%)

(8.5%)

3,490

2,057

2,244

Visa Inc.

1,829

9.4%

11.6%

1,227

19.9%

20.2%

32,795

602

(7.2%)

(2.6%)

4,293

2,057

2,244

For the 3 Months Ended June 30, 2020

Total

Growth

Growth

Payments

Growth

Growth

Payments

Cash

Growth

Growth

Cash

Volume

(Nominal

(Constant

Volume

(Nominal

(Constant

Transactions

Volume

(Nominal

(Constant

Transactions Accounts

Cards

($ billions)

USD)

USD)

($ billions)

USD)

USD)

(millions)

($ billions)

USD)

USD)

(millions)

(millions)

(millions)

All Visa Credit & Debit

Asia Pacific

$475

(21.0%)

(18.8%)

$396

(18.2%)

(16.1%)

7,040

$80

(32.1%)

(29.7%)

702

903

995

Canada

63

(15.5%)

(12.2%)

56

(18.2%)

(15.0%)

845

7

15.6%

20.1%

7

74

81

CEMEA

238

(19.5%)

(14.0%)

108

(12.5%)

(5.2%)

4,948

130

(24.5%)

(20.2%)

907

355

353

LAC

162

(30.8%)

(14.5%)

72

(30.5%)

(13.0%)

2,931

89

(31.0%)

(15.6%)

841

463

503

US

1,092

(6.4%)

(6.4%)

950

(6.9%)

(6.9%)

16,120

142

(3.1%)

(3.1%)

710

803

992

Europe

463

(17.7%)

(14.4%)

373

(13.3%)

(10.0%)

8,794

90

(32.2%)

(28.7%)

558

522

570

Visa Inc.

2,493

(15.1%)

(11.9%)

1,954

(12.4%)

(9.9%)

40,677

539

(23.6%)

(18.6%)

3,724

3,120

3,493

Visa Credit Programs

US

$424

(21.7%)

(21.7%)

$417

(21.0%)

(21.0%)

4,903

$7

(49.5%)

(49.5%)

8

275

340

International

563

(24.0%)

(20.5%)

529

(23.4%)

(19.9%)

9,299

34

(31.9%)

(28.8%)

134

710

800

Visa Inc.

987

(23.0%)

(21.0%)

946

(22.4%)

(20.4%)

14,202

41

(35.9%)

(33.6%)

142

985

1,139

Visa Debit Programs

US

$667

6.9%

6.9%

$532

8.2%

8.2%

11,217

$135

1.9%

1.9%

702

528

653

International

838

(18.4%)

(12.3%)

475

(8.3%)

(2.6%)

15,259

363

(28.8%)

(22.4%)

2,881

1,607

1,701

Visa Inc.

1,506

(8.9%)

(4.7%)

1,008

(0.3%)

2.8%

26,475

498

(22.4%)

(17.0%)

3,583

2,135

2,354

15

For the 3 Months Ended March 31, 2020

Total

Growth

Growth

Payments

Growth

Growth

Payments

Cash

Growth

Growth

Cash

Volume

(Nominal

(Constant

Volume

(Nominal

(Constant

Transactions

Volume

(Nominal

(Constant

Transactions Accounts

Cards

($ billions)

USD)

USD)

($ billions)

USD)

USD)

(millions)

($ billions)

USD)

USD)

(millions)

(millions)

(millions)

All Visa Credit & Debit

Asia Pacific

$545

(8.9%)

(7.1%)

$437

(8.4%)

(6.2%)

7,422

$108

(10.8%)

(10.4%)

987

898

988

Canada

66

2.6%

3.7%

61

2.0%

3.2%

932

6

9.0%

10.2%

11

74

80

CEMEA

291

8.4%

9.4%

130

18.3%

19.5%

5,553

161

1.6%

2.3%

1,160

363

359

LAC

219

(4.5%)

7.8%

101

(0.6%)

14.3%

3,824

119

(7.7%)

2.8%

1,108

455

493

US

1,123

4.9%

4.9%

983

5.8%

5.8%

17,629

139

(1.0%)

(1.0%)

853

794

978

Europe

534

1.1%

4.0%

419

3.4%

6.0%

10,346

116

(6.5%)

(2.7%)

814

516

565

Visa Inc.

2,779

0.7%

2.7%

2,131

2.3%

4.1%

45,706

648

(4.4%)

(1.5%)

4,933

3,100

3,464

Visa Credit Programs

US

$508

4.0%

4.0%

$493

4.0%

4.0%

5,943

$15

2.8%

2.8%

14

276

340

International

668

(6.5%)

(3.4%)

624

(6.5%)

(3.4%)

10,552

44

(6.7%)

(4.3%)

186

712

802

Visa Inc.

1,176

(2.2%)

(0.4%)

1,116

(2.1%)

(0.2%)

16,495

59

(4.5%)

(2.5%)

199

988

1,142

Visa Debit Programs

US

$615

5.6%

5.6%

$491

7.6%

7.6%

11,687

$124

(1.4%)

(1.4%)

839

518

638

International

988

1.3%

4.9%

523

7.7%

11.1%

17,524

465

(5.1%)

(1.4%)

3,894

1,594

1,684

Visa Inc.

1,603

2.9%

5.2%

1,014

7.6%

9.4%

29,211

589

(4.3%)

(1.4%)

4,733

2,111

2,322

For the 3 Months Ended December 31, 2019

Total

Growth

Growth

Payments

Growth

Growth

Payments

Cash

Growth

Growth

Cash

Volume

(Nominal

(Constant

Volume

(Nominal

(Constant

Transactions

Volume

(Nominal

(Constant

Transactions Accounts

Cards

($ billions)

USD)

USD)

($ billions)

USD)

USD)

(millions)

($ billions)

USD)

USD)

(millions)

(millions)

(millions)

All Visa Credit & Debit

Asia Pacific

$629

2.1%

1.9%

$511

3.7%

4.3%

8,171

$118

(4.4%)

(7.3%)

1,072

902

995

Canada

79

4.5%

4.6%

73

4.3%

4.3%

1,059

6

7.9%

7.9%

11

72

75

CEMEA

322

11.9%

10.6%

142

25.1%

23.0%

5,639

180

3.3%

2.5%

1,276

362

360

LAC

254

1.0%

8.7%

116

7.2%

17.0%

4,114

138

(3.7%)

2.5%

1,236

447

486

US

1,200

7.1%

7.1%

1,055

7.8%

7.8%

19,019

144

2.1%

2.1%

919

787

969

Europe

596

4.5%

5.3%

462

7.7%

8.2%

11,328

134

(5.3%)

(3.6%)

961

516

568

Visa Inc.

3,080

5.4%

6.1%

2,360

7.6%

8.2%

49,329

720

(1.3%)

(0.4%)

5,475

3,087

3,454

Visa Credit Programs

US

$568

6.6%

6.6%

$554

6.7%

6.7%

6,756

$14

1.3%

1.3%

15

276

340

International

779

3.6%

4.9%

731

4.2%

5.5%

11,595

49

(4.2%)

(3.4%)

212

711

797

Visa Inc.

1,348

4.9%

5.6%

1,285

5.3%

6.1%

18,350

63

(3.0%)

(2.4%)

227

987

1,138

Visa Debit Programs

US

$631

7.6%

7.6%

$501

9.1%

9.1%

12,264

$130

2.1%

2.1%

904

511

629

International

1,101

4.9%

5.8%

574

11.9%

12.6%

18,716

526

(1.9%)

(0.8%)

4,344

1,588

1,688

Visa Inc.

1,732

5.8%

6.4%

1,076

10.6%

10.9%

30,979

657

(1.1%)

(0.3%)

5,248

2,099

2,316

For the 3 Months Ended September 30, 2019

Total

Growth

Growth

Payments

Growth

Growth

Payments

Cash

Growth

Growth

Cash

Volume

(Nominal

(Constant

Volume

(Nominal

(Constant

Transactions

Volume

(Nominal

(Constant

Transactions Accounts

Cards

($ billions)

USD)

USD)

($ billions)

USD)

USD)

(millions)

($ billions)

USD)

USD)

(millions)

(millions)

(millions)

All Visa Credit & Debit

Asia Pacific

$609

1.8%

2.9%

$494

3.8%

5.6%

7,908

$115

(6.0%)

(7.4%)

987

879

973

Canada

77

8.4%

9.2%

71

8.1%

9.0%

1,052

6

10.8%

11.7%

12

67

68

CEMEA

308

11.3%

11.4%

133

25.5%

24.8%

5,397

175

2.5%

3.1%

1,259

361

358

LAC

240

4.2%

9.4%

108

11.5%

17.8%

3,820

132

(1.1%)

3.5%

1,213

438

475

US

1,168

7.3%

7.3%

1,021

8.1%

8.1%

18,786

148

2.1%

2.1%

950

766

937

Europe

579

2.1%

6.2%

442

4.8%

9.1%

10,873

137

(5.6%)

(2.4%)

998

510

559

Visa Inc.

2,982

5.3%

6.7%

2,268

7.5%

8.9%

47,836

714

(1.2%)

0.0%

5,420

3,022

3,371

Visa Credit Programs

US

$547

6.7%

6.7%

$533

6.8%

6.8%

6,603

$14

1.7%

1.7%

16

273

337

International

763

5.0%

6.9%

712

5.4%

7.3%

11,285

51

(0.2%)

1.9%

225

711

792

Visa Inc.

1,310

5.7%

6.8%

1,245

6.0%

7.1%

17,889

66

0.2%

1.8%

241

983

1,130

Visa Debit Programs

US

$621

7.8%

7.8%

$488

9.4%

9.4%

12,183

$133

2.2%

2.2%

934

494

600

International

1,051

3.3%

5.9%

536

9.2%

12.8%

17,765

515

(2.3%)

(0.8%)

4,245

1,545

1,642

Visa Inc.

1,672

4.9%

6.6%

1,024

9.3%

11.2%

29,948

648

(1.4%)

(0.2%)

5,179

2,039

2,241

16

For the 12 Months Ended September 30, 2020

Total

Growth

Growth

Payments

Growth

Growth

Payments

Cash

Growth

Growth

Cash

Volume

(Nominal

(Constant

Volume

(Nominal

(Constant

Transactions

Volume

(Nominal

(Constant

Transactions Accounts

Cards

($ billions)

USD)

USD)

($ billions)

USD)

USD)

(millions)

($ billions)

USD)

USD)

(millions)

(millions)

(millions)

All Visa Credit & Debit

Asia Pacific

$2,194

(9.5%)

(8.7%)

$1,796

(7.8%)

(6.8%)

30,635

$398

(16.6%)

(16.1%)

3,581

Canada

283

(3.1%)

(1.6%)

259

(4.0%)

(2.5%)

3,891

25

7.3%

8.9%

38

CEMEA

1,152

(0.7%)

2.6%

522

8.7%

13.1%

22,546

630

(7.3%)

(4.8%)

4,451

LAC

836

(12.5%)

1.0%

383

(9.0%)

6.7%

14,521

452

(15.3%)

(3.3%)

4,160

US

4,676

3.3%

3.3%

4,085

3.4%

3.4%

71,622

591

2.5%

2.5%

3,295

Europe

2,206

(1.5%)

(0.3%)

1,749

2.5%

3.5%

42,147

457

(14.6%)

(12.4%)

3,073

Visa Inc.

11,347

(2.2%)

(0.3%)

8,793

0.2%

1.6%

185,362

2,553

(9.6%)

(6.3%)

18,598

Visa Credit Programs

US

$2,000

(5.2%)

(5.2%)

$1,957

(4.7%)

(4.7%)

23,467

$43

(25.3%)

(25.3%)

47

International

2,676

(9.9%)

(7.6%)

2,511

(9.4%)

(7.1%)

42,435

166

(16.8%)

(15.0%)

695

Visa Inc.

4,677

(7.9%)

(6.6%)

4,468

(7.4%)

(6.0%)

65,901

208

(18.7%)

(17.4%)

742

Visa Debit Programs

US

$2,676

10.8%

10.8%

$2,128

12.2%

12.2%

48,155

$548

5.6%

5.6%

3,248

International

3,994

(2.7%)

1.0%

2,197

7.0%

9.7%

71,306

1,797

(12.4%)

(8.0%)

14,609

Visa Inc.

6,670

2.3%

4.7%

4,325

9.5%

10.9%

119,460

2,345

(8.7%)

(5.2%)

17,857

For the 12 Months Ended September 30, 2019

Total

Growth

Growth

Payments

Growth

Growth

Payments

Cash

Growth

Growth

Cash

Volume

(Nominal

(Constant

Volume

(Nominal

(Constant

Transactions

Volume

(Nominal

(Constant

Transactions Accounts

Cards

($ billions)

USD)

USD)

($ billions)

USD)

USD)

(millions)

($ billions)

USD)

USD)

(millions)

(millions)

(millions)

All Visa Credit & Debit

Asia Pacific

$2,425

0.3%

4.0%

$1,948

2.3%

6.6%

29,779

$477

(7.2%)

(5.3%)

4,039

879

973

Canada

292

3.5%

6.9%

269

3.7%

7.0%

3,925

23

2.2%

5.5%

46

67

68

CEMEA

1,160

4.6%

9.2%

480

17.0%

22.3%

19,466

680

(2.7%)

1.5%

4,960

361

358

LAC

955

(4.1%)

7.4%

421

1.1%

15.5%

14,418

534

(7.9%)

1.9%

4,834

438

475

US

4,526

7.9%

7.9%

3,949

8.8%

8.8%

72,265

577

1.9%

1.9%

3,708

766

937

Europe

2,240

(1.1%)

5.8%

1,705

1.4%

8.0%

40,733

535

(8.6%)

(0.8%)

3,989

510

559

Visa Inc.

11,599

2.9%

6.7%

8,773

5.7%

9.0%

180,585

2,825

(4.7%)

0.0%

21,575

3,022

3,371

Visa Credit Programs

US

$2,111

7.1%

7.1%

$2,053

7.2%

7.2%

25,025

$58

3.0%

3.0%

61

273

337

International

2,969

1.3%

7.0%

2,770

1.8%

7.4%

42,384

199

(4.4%)

0.8%

879

711

792

Visa Inc.

5,080

3.6%

7.0%

4,824

4.0%

7.3%

67,408

256

(2.9%)

1.3%

939

983

1,130

Visa Debit Programs

US

$2,415

8.6%

8.6%

$1,896

10.5%

10.5%

47,240

$519

1.8%

1.8%

3,647

494

600

International

4,103

(0.9%)

5.2%

2,053

5.3%

11.6%

65,937

2,050

(6.5%)

(0.6%)

16,988

1,545

1,642

Visa Inc.

6,518

2.4%

6.4%

3,949

7.8%

11.1%

113,176

2,569

(4.9%)

(0.1%)

20,635

2,039

2,241

17

2. Cross-Border Volume

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

Total

Total

Ex. Intra-Europe(1)

Growth

Growth

Growth

(Nominal

(Constant

(Constant

Period

USD)

USD)

USD)

3 Months Ended

Sep 30, 2020

(28%)

(29%)

(41%)

Jun 30, 2020

(38%)

(37%)

(47%)

Mar 31, 2020

(4%)

(2%)

(4%)

Dec 31, 2019

7%

9%

9%

Sep 30, 2019

4%

7%

9%

12 Months Ended

Sep 30, 2020

(16%)

(16%)

(22%)

  1. Cross-bordervolumes excluding transactions within Europe drive our international transaction revenues.

3. Visa Processed Transactions

The table below represents transactions using cards and other form factors carrying the Visa, Visa Electron, V PAY, Interlink and PLUS brands processed on Visa's networks.

Processed

Transactions

Period

(millions)

Growth

3 Months Ended

Sep 30, 2020

37,448

3%

Jun 30, 2020

30,676

(13%)

Mar 31, 2020

34,941

7%

Dec 31, 2019

37,775

11%

Sep 30, 2019

36,425

11%

12 Months Ended

Sep 30, 2020

140,839

2%

18

Footnote

Payments volume, including Visa Direct volume, represents the aggregate dollar amount of purchases made with cards and other form factors carrying the Visa, Visa Electron, V PAY and Interlink brands and excludes Europe co-badged volume 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 and 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 transactions processed by Visa and reported by Visa's financial institution clients on their operating certificates. Estimates may be utilized if data is unavailable.

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

Visa's CEMEA region is comprised of countries in Central Europe, the Middle East and Africa. 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, Europe 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.

19

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Disclaimer

Visa Inc. published this content on 28 October 2020 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 28 October 2020 20:19:09 UTC


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