Visa Annual Report 2021 - s29.q4cdn.com

1 Annual Report2021 View the interactive Report and additional content at ttt tt tttt tt ttttttttttttttttttttttaanananananananana anaaanananananananannananannanannnnannna nanananannannnannannanananananaaanananna nnnanananananannnananannnnnnnananaaanann annnannnnnnnnanananaannnnannnnnnnnnaaana nannnnnnanannnnnnnnaanaannaaaaaananaaaaa nananananaannnanannnnnnnannnnnnnnanaannn nannnaannnaaannananannnnanaaannnnaaannan aannnannnaannnnnnndddddddddddddddddddddd dddddddddddddddddddddddddddddddddddddddd dddddddddddddddddddddddddddddddddddddddd dddddddddddddddddddddddddddddddddddddddd dddddddddddddddddddddddddddddddddddddddd dddddddddddddddddddddddddddddddddddddddd dddddddddddddddddddddddddddddddddddddddd ddadadadadadadadadadadadadadaddaadadadad addaddddadadddaddaadadadadadadadadadadad aadadadadaddadadaddaadadadaddadadadadada daddadadadadadadaddadaaddaddadadddadaada ddaadaddaddadaaadaddaaaaaaaaadaadaaaaadd aadadadddaaadaadddadadaadadddaaaddaaaaaa daaddddddaadddddddddiddddddddddidididdii iiididdddddidididiiiiiididididddidddiddi diiiiiiidiiiiidididdddidididiiiididdidii iiiidididdididiiididididdidididiiidddidi diiiddddidiidddddidiiidddddididididdddii ididididdddidddidiididdiddddidddddddtiti titititititititttititititittititiititiit tititittttititittitititiiitititititittit tittitiititittitititittiiitiitititttttii ititititittttitiititiititititiititiititi titiiiiitititittititititittitttititiitti titttttttiittttttittitititittiitittttiti tiiittiiiiiittitiioonononononononononono nononononononononononononononnononononnn ononoononoonoonnonononononononononononno nononooononooononononononononononnnonnnn onoonoonoonononnnonnonnononoonononooonon ononononoonooonononoonoononoonononononno ooooooooooooononnonnnooooooononnoonoonon nnooooooononooonnonnonoooooonononnoonnnn onooononnnnoonnnoooonononononononononono noononnnonnnnoooonnonnnnnnonnnoonnnnoonn nnoonnoooonnnnnoonooonoonnnonoonnnoaaaaa alaalalalallllaalallallaaaaaaaaaalaaalaa llaalalallaalalaallalallllalalalllalalla alallllallllalalalllllaallllalllllaallll lllllaallllllllaallllllaaaallllaaallalll aaaaallaaaallllllaaacccocococococococcoc ococococococcococococococococococooccooo ccocooooontntntntntntntntntnttttntntntnt ntntntntntntntnttnttntntntntntntntntntnt ntnntttttnnnnnnttntnnnntnnnnneenenenenen enennnenenennneneeeenttttttttttttttttttt tatataaaaattttatataaatatatataaattatatatt ttttataattatatatatatataaatattaaataaat the interactive Report and additional content at VISA1 Total volume is the sum of payments volume and cash volume.

2 Payments volume represents the aggregate dollar amount of purchases made with cards and other formfactors carrying the Visa, Visa Electron, V PAY and Interlink brands and excludes Europe co-badged volume. Cash volume generally consists of cash access transactions,balance access transactions, balance transfers and convenience checks. For further discussion, see Item 7 - Management s Discussion and Analysis of Financial Condition and Results of Operations - Overview - Payments volume and processed transactions in this Annual Report . z J J J 6 ij 7 n ij > R " ij 6 ij p ij X X S 7 n ij ij ijp Financial Highlights (GAAP)In millions (except for per share data)

3 FY 2019FY 2020FY 2021 Net revenues$22,977 $21,846$24,105 Operating expenses$7,976 $7,765$8,301 Operating income$15,001 $14,081$15,804 Net income$12,080$10,866$12,311 Diluted class A common stock earnings per share$ $ $ Highlights (Non-GAAP) In millions (except for per share data)FY 2019FY 2020FY 2021 Net revenues$22,977 $21,846$24,105 Operating expenses$7,596 $7,702$8,077 Operating income$15,381 $14,144$16,028 Net income$12,274$11,193$12,933 Diluted class A common stock earnings per share$ $ $ Highlights t 201920202021 Total volume, including payments and cash volume $ $ $ volume $ $ $ processed on Visa s networks FINANCIAL HIGHLIGHTS$100$150$200$250$300$3509/30/1 69/30/179/30/189/30/199/30/209/30/21 Visa 500 IndexS&P 500 Data Processing IndexStock PerformanceThe accompanying graph and chart compares the cumulative total return on Visa s common stock with the cumulative total return on Standard & Poor s 500 Index and the Standard & Poor s 500 Data Processing Index from September 30, 2016 through September 30, 2021.

4 The comparison assumes $100 was invested on September 30, 2016, and that dividends were reinvested. Visa Inc. s class B and C common stock are not publicly traded or listed on any exchange or dealer quotation periodIndexed Returns (Fiscal Year Ended)Company / Index9/30/169/30/179/30/189/30/199/30/20 9/30/21 Visa Inc.$100$128$184$212$248$278S&P 500 Index$100$119$140$146$168$218S&P 500 Data Processing Index$100$131$186$218$266$300 Annual Report 2021 3 There is no denying the challenges we have faced over the past year and a half as individuals and communities, as a company and workplace, and as a global society at large. At Visa, with the majority of our team working from home, we proved to be resilient.

5 Our colleagues continued to serve our partners with excellence; we remained focused on innovation; and we continued to do whatever it takes to keep the engine of global commerce running. Hopefully, with the marvelous work of researchers and pharmaceutical companies, we will start to see the pandemic migrate to an endemic that can be more easily managed. That said, the pandemic did accelerate some positive changes. Many of the old ways of doing things will not be the ways of the future; changes in consumer preferences and behavior have accelerated and the future of money is digital and borderless. With Visa s global scale, network, incredible brand, broad-based array of value added services, compelling technology, and relentless focus on > of Visa.

6 I will use the bulk of this letter to talk about our future, but let me provide a brief summary of the past year." ij net income and earnings per share at double-digit rates. We continue to have momentum across our three growth ij and value added services as we seek to diversify our revenue. By using our network of networks, we are working to facilitate money movement seamlessly and securely for everyone. We deepened current relationships and laid the foundation for future growth by renewing existing partnerships and signing key ij ij are a network working for everyone big and small, developed countries and ij ij pick winners and losers.

7 We enable disruptors and much of the innovation in the payments and money movement infrastructure, helping to accelerate Visa s growth.> ij for payments volume and transactions despite the pandemic. The increasing digitization of payments, new use cases in money movement and the large number of consumers embracing ecommerce all contributed to our growth. And we have achieved this growth despite cross-border travel continuing to lag well behind 2019 pre-COVID levels. That said, we are seeing increasing momentum for cross-border travel as border restrictions are being eased and vaccination rates are increasing.

8 Even with many borders still closed, cross-border travel-related spending, excluding intra-Europe, has climbed from 40 percent of 2019 rates in April 2021 to 50 percent in June 2021 and 61 percent in September 2021. Fiscal year 2021 was also transitional a shift away from the sheer uncertainty of the early pandemic toward a renewed focus on accelerating growth in a new and increasingly digital future. In many ways, we are coming out of the pandemic stronger than we were before it started. And through it all, we have remained steadfast in our belief that economies that include everyone everywhere, uplift everyone payments Increasingly digital and forever changed One trend the pandemic has accelerated is the shift to digital payments.

9 Social distancing and the forced closure of many in-person businesses and gathering places made the limitations of cash blatantly obvious, moving much of commerce online. When consumers ijij showed a strong and sticky preference for digital payments. This shift toward digital payments could be seen across our business from debit payments volume, which grew 23 percent, to the increase in the number of monthly global active ecommerce credentials and spend per active credential. In the United States, CHAIRMAN AND CEO LETTER4 VISADear Stockholders, > ij ij ahead to what comes next, I see us in the midst of an exciting transformation, on the cusp of a new, digital future.

10 And investigations, and threat intelligence capabilities. We have built a deep bench of PhD researchers, data scientists and engineers to accelerate and improve our automated systems, including our ij > ijij platform, Visa Advanced Authorization, which prevented roughly $26 billion in ij ij year 2020. S Facilitating money movement globallyMore and more, consumers are paying for goods and services, and paying each other (P2P) digitally, but a strong and growing pref