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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
slgnlcanL 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,
nanclal 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 speclc legal, Lax, and lnvesLmenL advlce from a llcensed professlonal
concernlng your own slLuauon and any speclc lnvesLmenL quesuons you may have.
asL 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 reecL Lhe vlews or
oplnlons of any oLher person or enuLy.
lL'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


1here ls value ln growLh."
- vlLally kaLsenelson4 892:;< 8*'0 =>5=


vlsa's 8uslness
never lnvesL ln any ldea LhaL you cannoL lllusLraLe wlLh a crayon."
- eLer 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
nal 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 llngs

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 (CL)
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 resenLauon

Clobal Converslon Lo LlecLronlc aymenLs
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 shl Lo elecLronlc paymenLs
Source: vlsa 2013 lnvesLor uay resenLauon and SLC llngs

8lsk of uecllnlng CL?
79 of uS CL ls non-
dlscreuonary
uS Cu per caplLa ls Lhe
12
Lh
hlghesL ln Lhe world,
whlch lndlcaLes a level of
dlscreuonary lncome
above average levels
CL 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 nanclal 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 resenLauon and SLC llngs

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 dlerenuaLe 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 unlonay
unllkely non-Chlnese lssulng banks wlll choose Lo lssue a Chlna unlonay card
ConsequenLly Chlna unlonay ls focused on markeLs where Chlnese cluzens Lravel
Source: vlsa, MasLerCard, and Amerlcan Lxpress SLC llngs

SusLalnable Compeuuve AdvanLage
8epllcauon of neLwork nearly lmposslble
8llllons of dollars aL rlsk - new enLranL would need slgnlcanL backlng Lo
bulld scale and galn condence 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 eecuvely
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 M lgor Shuvalov - !une 18
Lh
, 2014
hup://nance.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 roducLs 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 oers
8evenue has grown by 14 annuallzed and LS by 49 annuallzed slnce 2008
Source: vlsa SLC llngs

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 proL and prlces servlces
aL a below-markeL level
CurrenL vlsa Lurope markeL envlronmenL mlmlcs vlsa lnc. pre-lC
Slnce 2007 (pre-lC), vlsa lnc. has revenue CAC8 of 22
Slnce Lhe 2008 lC, LS 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 beneclary of a shl Lo markeL prlclng
and any poLenual fuLure growLh
Source: vlsa SLC llngs

Looklng forward
@'A 6$$39B0*.$
Conservauve - ~6 revenue/CL 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, nance 100 wlLh debL (A raung), achleves vlsa lnc. marglns, 22
CAC8 ln revenue (slmllar Lo vlsa lnc. experlence posL-lC)
unfavorable 8esulLs - 8evenue growLh of 3 (loslng share Lo compeuLors as paymenLs shl
from cash), operaung marglns from 62 Lo 30, lncenuves from 17 Lo 23 of gross revenue
Source: vlsa SLC llngs for 2013, l8Lu, 2014 and forward are esumaLes - see dlsclalmer

oLenual negauve CuLcomes
lrrauonal compeuuon from MasLerCard (less llkely as lL ls a for-proL
enuLy) or Chlna unlonay LhaL Lakes share from vlsa
unfavorable shl 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
SlgnlcanL 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
8lsk ls whaL's le over when you Lhlnk you've LhoughL of everyLhlng."
- Carl 8lchards4 B&" !"&*C'/# D*E
Summary
1here ls a global shl occurrlng Lowards elecLronlc paymenLs
and away from cash and paper-based paymenLs
ersonal consumpuon expense (CL) ls growlng, parucularly ln
emerglng markeLs, and a slgnlcanL poruon of CL 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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