vALuLx vall

!une 19, 2014


Mau CrlmLh, ClA
[MauCCrlmLh
ulsclalmer
1he daLa ln Lhls presenLauon has been obLalned from sources belleved Lo be rellable, buL
accuracy and compleLeness are noL guaranLeed. 1he presenLauon has been prepared solely for
lnformauve purposes and ls made avallable on an "as ls" basls.

no represenLauon or warranLy, express or lmplled, ls made as Lo Lhe falrness, accuracy,
compleLeness, reasonableness, or correcLness of Lhe lnformauon, oplnlons, or concluslons
conLalned ln Lhls presenLauon. lorecasLs, prospecLs or reLurns are by Lhelr naLure sub[ecL Lo
slgnlñcanL uncerLalnues and conungencles.

noLhlng ln Lhls presenLauon ls lnLended Lo consuLuLe legal, Lax, securlues, or lnvesLmenL advlce,
nor an oplnlon regardlng Lhe approprlaLeness of any lnvesLmenL, nor a sollclLauon of any Lype.
1hls presenLauon has been prepared wlLhouL Laklng lnLo accounL Lhe lnvesLmenL ob[ecuves,
ñnanclal slLuauon or parucular needs of any parucular person or enuLy. 1he conLenLs ln Lhls
presenLauon are lnLended for general lnformauonal purposes only and should noL be acLed upon
wlLhouL obLalnlng speclñc legal, Lax, and lnvesLmenL advlce from a llcensed professlonal
concernlng your own slLuauon and any speclñc lnvesLmenL quesuons you may have.
ÞasL performance ls no guaranLee of fuLure performance. AcLual fuLure evenLs may vary from
Lhese forecasLs and you are cauuoned noL Lo place undue rellance on any forward looklng
sLaLemenL.

1he vlews or oplnlons presenLed are solely Lhose of Lhe auLhor and do noL reßecL Lhe vlews or
oplnlons of any oLher person or enuLy.
ºlL's far beuer Lo buy a wonderful company aL a falr prlce Lhan a
falr company aL a wonderful prlce."
- !"#$%&'#" )*+&*,*- .&*#"&/01"#% 2"3"#4 5676


º1here ls value ln growLh."
- vlLally kaLsenelson4 892:;< 8*'0 =>5=


vlsa's 8uslness
ºnever lnvesL ln any ldea LhaL you cannoL lllusLraLe wlLh a crayon."
- ÞeLer Lynch, !"*?@A +&" .+#""+
1) Cardholder makes
purchase
2) MerchanL LransmlLs
Lransacuon Lo
acqulrlng bank
3) Acqulrer rouLes
Lransacuon over
vlsa's neLwork Lo
lssulng bank


4) lssulng bank
auLhorlzes Lransacuon
3) MerchanL submlLs
ñnal Lransacuon daLa
Lo vlsa for seulemenL
6) lunds Lransferred
beLween cardholder's
accounL Lo Lhe
merchanL's accounL



Cardholder
MerchanL
Acqulrlng 8ank
lssulng 8ank
vlsa neLwork
AuLhorlzauon, Clearlng,
8lsk ManagemenL,
CLher Servlces
"#$% &'()*+, -+%.$%/0*. 1'2'.3'4
~22bps of volume
&*.5"#$% &'()*+, -+%.$%/0*. 1'2'.3'4
$0.037 per Lransacuon
62'+%7' 8./+'9'.(%: ;%+7#. <#./' =>?>4
76.3°
1
!" $%&'() %(*+ , - )&$./"0"12 $"34-/2 "4&%-5/1 (/ ).& 6/-/$(-0 *&%7($&* (/'8*)%2
Source: vlsa SLC ñllngs

1
Ad[usLed Lo exclude Lhe 2012 merchanL seulemenL expense
vlsa's SLraLegy
• lncrease share of elecLronlc paymenLs as a percenLage of global
personal consumpuon expense (ÞCL)
• Crow revenue sLreams ouLslde of Lhe uS Lo greaLer Lhan 30°
of LoLal revenue
• lncrease share of Lransacuons processed on vlsaneL
• lnvesL ln new buslnesses LhaL provlde addluonal value Lo
cusLomers ln paymenL ecosysLem and drlve revenue growLh

Source: vlsa 2013 lnvesLor uay ÞresenLauon

Clobal Converslon Lo LlecLronlc ÞaymenLs
• vlsa 2012 volume: $6.41 and 28° share of $231 markeL (excludlng Lurope)
• $111 cash converslon opporLunlLy wlLh Lhe same share and moneuzauon raLe represenLs
a poLenual revenue lncrease of 33° - solely from Lhe shlû Lo elecLronlc paymenLs
Source: vlsa 2013 lnvesLor uay ÞresenLauon and SLC ñllngs

8lsk of uecllnlng ÞCL?
• 79° of uS ÞCL ls non-
dlscreuonary
• uS CuÞ per caplLa ls Lhe
12
Lh
hlghesL ln Lhe world,
whlch lndlcaLes a level of
dlscreuonary lncome
above average levels
• ÞCL looks very much llke
recurrlng revenue

79°
Source: 8LA, World 8ank

SusLalnable Compeuuve AdvanLage
• ueep lnLegrauon wlLh all members of paymenL ecosysLem
• Consumers - 2.18 cards lssued
• When banks swlLch neLworks on Lhelr card poruollos, card relssuance can lead
Lo cusLomer aurluon of 10-13°
• 8elssuance ls operauonally complex and cosLly
• MerchanLs - 36MM locauons accepung vlsa cards globally
• Large number of cardholders ensures LhaL merchanLs have lncenuve Lo accepL
vlsa
• 8anks - 8elauonshlps wlLh 13,000 ñnanclal lnsuLuuons
• 1ransacuons - 828 Lransacuons ln C? 2012
• knowledge of cusLomers and Lhelr Lransacuons allows vlsa Lo provlde value-
add servlces Lo merchanLs and lssuers LhaL new enLranLs cannoL (fraud
avoldance, enhance volumes)
Source: vlsa 2013 lnvesLor uay ÞresenLauon and SLC ñllngs

SusLalnable Compeuuve AdvanLage
• vlsa has advanLages relauve Lo lLs few global compeuLors
• MasLerCard
• MasLerCard's Lransacuon counL and paymenL volume are 37° and 67° of vlsa's
respecuvely
• MasLerCard needs Lo dlñerenuaLe on boLh prlce and servlce level Lo wln capuve
buslness from vlsa and galn share
• CpuonallLy from vlsa Lurope (more on Lhls laLer.)
• Amerlcan Lxpress
• Closed-loop sysLem where Amerlcan Lxpress acLs as acqulrer, neLwork, and lssuer
• More dlrecLly exposed Lo regulaLory rlsk as 60° of revenue comes from
lnLerchange fees
• CrowLh opporLunlues llmlLed Lo cardholders who are credlL-worLhy
• Chlna unlonÞay
• unllkely non-Chlnese lssulng banks wlll choose Lo lssue a Chlna unlonÞay card
• ConsequenLly Chlna unlonÞay ls focused on markeLs where Chlnese cluzens Lravel
Source: vlsa, MasLerCard, and Amerlcan Lxpress SLC ñllngs

SusLalnable Compeuuve AdvanLage
• 8epllcauon of neLwork nearly lmposslble
• 8llllons of dollars aL rlsk - new enLranL would need slgnlñcanL backlng Lo
bulld scale and galn conñdence of Lhe merchanLs and banks
• 1he paymenL sysLem ls hlghly regulaLed - new enLranLs would need Lo be
adepL aL lnLerfaclng wlLh regulaLory agencles globally
• lew lssuers have Lhe volume and global presence necessary Lo eñecuvely
clrcumvenL exlsung neLworks
• Cnce a neLwork ls bullL, Lhe hurdle would Lhen become bulldlng scale
(lssulng cards, addlng accepLance locauons, drlvlng neLwork volumes,
eLc.)
MosL 8ecenL uemonsLrauon.
"We expecL LhaL Lhe acuons we are Laklng wlll calm Lhe slLuauon
wlLh vlsa and MasLerCard," he sald. "We wlll do everyLhlng Lo
make sure Lhey keep Lhelr acuvlues here."
- 8usslan 1
sL
uepuLy ÞM lgor Shuvalov - !une 18
Lh
, 2014
hup://ñnance.yahoo.com/news/russla-reduce-collaLeral-paymenLs-masLercard-134733893.hLml

Acqulsluons and lnnovauon
• vlsa has a hlsLory of uslng cash boLh Lo develop enhanced paymenL
Lechnology ln-house (payWave - nlC, v.me - elecLronlc walleL) and acqulre
companles lnnovaung ln moblle (lundamo) and merchanL servlces
(CyberSource)
uo vlsa ÞroducLs Add value for CusLomers?
1he numbers lndlcaLe Lhey do.
• ln 2008, every $670 of volume led Lo $1 of vlsa revenue. 8y 2013 LhaL rauo
decllned Lo $370 of volume for every $1 of revenue.
• 1hls shows LhaL merchanLs and lssuers are wllllng Lo pay for Lhe producLs and servlces
vlsa oñers
• 8evenue has grown by 14° annuallzed and LÞS by 49° annuallzed slnce 2008
Source: vlsa SLC ñllngs

vlsa Lurope
• vlsa Lurope ls sull owned by a consoruum of banks and has Lhe
ablllLy Lo puL Lhe company Lo vlsa lnc. aL any ume
• 8egulaLory pressure on banks and hlgher caplLal requlremenLs would
make proceeds from vlsa Lurope Lransacuon auracuve Lo currenL
ownershlp
• vlsa Lurope currenLly noL run Lo generaLe a proñL and prlces servlces
aL a below-markeL level
• CurrenL vlsa Lurope markeL envlronmenL mlmlcs vlsa lnc. pre-lÞC
• Slnce 2007 (pre-lÞC), vlsa lnc. has revenue CAC8 of 22°
• Slnce Lhe 2008 lÞC, LÞS has lncreased from $1.04 Lo $7.39
• 8oLh of Lhese resulLs occurred durlng Lhe posL-ClC perlod (pressure on
consumer spendlng, lncreased caplLal requlremenLs for banks, lncreased
regulauon)
• vlsa lnc. would llkely be Lhe beneñclary of a shlû Lo markeL prlclng
and any poLenual fuLure growLh
Source: vlsa SLC ñllngs

Looklng forward
@'A 6$$39B0*.$
• Conservauve - ~6° revenue/ÞCL growLh (noL facLorlng lncreased share from cash paymenL
converslon), lncenuves (conLra-revenue lLem) golng from 16.8° Lo 19° of gross revenue
• Plgh CrowLh - lncremenLal 8° revenue growLh from cash paymenL share galn, lncenuves golng
from 17.1° Lo 18.4° of gross revenue
• vlsa Lurope - $88 prlce, ñnance 100° wlLh debL (A raung), achleves vlsa lnc. marglns, 22°
CAC8 ln revenue (slmllar Lo vlsa lnc. experlence posL-lÞC)
• unfavorable 8esulLs - 8evenue growLh of 3° (loslng share Lo compeuLors as paymenLs shlû
from cash), operaung marglns from 62° Lo 30°, lncenuves from 17° Lo 23° of gross revenue
Source: vlsa SLC ñllngs for 2013, l8Lu, 2014 and forward are esumaLes - see dlsclalmer

ÞoLenual negauve CuLcomes
• lrrauonal compeuuon from MasLerCard (less llkely as lL ls a for-proñL
enuLy) or Chlna unlonÞay LhaL Lakes share from vlsa
• unfavorable shlû ln Lhe regulaLory envlronmenL globally leadlng Lo
lncreased operaung cosL or reduced revenue
• MandaLes from forelgn governmenLs Lo rouLe Lransacuons over
domesuc paymenL neLworks llmlung vlsa's ablllLy Lo Lake share as
paymenLs move from cash Lo elecLronlc
• SlgnlñcanL legal [udgmenL(s) depleung shareholder equlLy and
alLerlng compeuuve envlronmenL
• AlLernauve neLworks/meLhods of auLhorlzauon and clearlng LhaL
erode Lhe value of vlsa's neLwork
º8lsk ls whaL's leû over when you Lhlnk you've LhoughL of everyLhlng."
- Carl 8lchards4 B&" !"&*C'/# D*E
Summary
• 1here ls a global shlû occurrlng Lowards elecLronlc paymenLs
and away from cash and paper-based paymenLs
• Þersonal consumpuon expense (ÞCL) ls growlng, parucularly ln
emerglng markeLs, and a slgnlñcanL poruon of ÞCL ls non-
dlscreuonary
• vlsa demonsLraLes Lhe characLerlsucs of a company wlLh a
susLalnable compeuuve advanLage
• l belleve Lhese facLors lndlcaLe Lhe range of ouLcomes for vlsa
ls posluvely skewed.
• under favorable clrcumsLances, Lhere ls Lhe poLenual for
earnlngs Lo compound by more Lhan 13° annually over 3
years.


-C%., A*3

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