MasterCard Incorporated Reports Second-Quarter 2009 Financial Results

PURCHASE, N.Y., July 30 /PRNewswire-FirstCall/ --

-- Second-quarter net income of $349 million, or $2.67 per diluted share
-- Net income growth of 26.4%, excluding the special item from last
year
-- Second-quarter net revenue growth of 2.7%, to $1.3 billion
-- Second-quarter gross dollar volume down slightly by 0.6%, and purchase
volume down slightly by 0.7%

-- Second-quarter total operating expenses declined 13%, excluding the
special item from last year

MasterCard Incorporated (NYSE: MA) today announced financial results for the
second quarter of 2009. The company reported net income of $349 million, or
$2.67 per diluted share. Net income grew 26.4%, excluding the special item
from last year. The company's total operating expenses, other income,
effective tax rate, net income and earnings per share, excluding special
items, are non-GAAP financial measures that are reconciled to their most
directly comparable GAAP measures in the accompanying GAAP reconciliations.

(Logo: http://www.newscom.com/cgi-bin/prnh/20061031/MCLOGO )

Net revenue for the second quarter of 2009 was $1.3 billion, a 2.7% increase
versus the same period in 2008. On a constant currency basis (excluding the
movement of the euro and the Brazilian real relative to the U.S. dollar), net
revenue increased 7.0% compared to the same period in 2008. The higher net
revenue in the second quarter this year was fueled by:
-- Pricing changes, which contributed approximately 8 percentage points
of
the net revenue growth;
-- A 7.9% increase in the number of transactions processed to 5.6
billion;
and

-- A 5.8% decrease in rebates and incentives.

These contributing factors were partially offset by the impact of lower gross
dollar volumes on second-quarter 2009 revenue.

MasterCard's gross dollar volume was down by 0.6% on a local currency basis,
versus the second quarter of 2008, to $595 billion. Worldwide purchase volume
during the quarter was down by 0.7% on a local currency basis, versus the
second quarter of 2008, to $450 billion. As of June 30, 2009, the company's
financial-institution customers had issued 959 million MasterCard cards, an
increase of 1.2% over the cards issued at June 30, 2008.

"We are very pleased with our second-quarter financial performance and are
adapting well to the challenging economic environment," said Robert W.
Selander, MasterCard president and chief executive officer. "The thoughtful
actions we've taken to realign our resources and priorities to match customer
and local market needs, as well as our sharp focus on expense management, have
enabled us to deliver strong operating margin and net income improvements.

"At the same time, we continue to invest in the future so that we are solidly
positioned once the economic tide begins to turn," said Selander. "We operate
a global, flexible and resilient business that will continue to benefit from
the ongoing shift toward electronic payments, which consumers, businesses and
governments find more efficient, secure and easier to manage."

The special item for the second quarter of 2009 represented a $0.5 million
litigation settlement charge. The special item for the second quarter of 2008
represented a $1.65 billion charge related to a litigation settlement.

Excluding special items, total operating expenses decreased 13.0%, to $722
million, during the second quarter of 2009 compared to the same period in
2008. Currency fluctuations contributed 3.2 percentage points to the rate of
decline. The decrease in total operating expenses was driven by:
-- A 2.9% decrease in general and administrative expenses, primarily
resulting from decreases in professional fees and travel expenses,
versus the comparable period in 2008. These decreases were partially
offset by increased personnel costs due to severance of $51 million in
the second quarter of 2009. Excluding the impact of severance costs
in
both periods, general and administrative expenses declined 10.7% for
the
second quarter of 2009. A favorable foreign currency impact
represented
2.9 percentage points of both rates of decline; and

-- A 35.8% decrease in advertising and marketing expenses versus the
year-ago period, primarily related to continued cost containment
initiatives in response to market realities. Favorable currency
fluctuations representing approximately 3.5 percentage points
contributed to the rate of decline.

Including special items, total operating expenses decreased 70.9%, to $723
million, primarily due to the litigation settlement that occurred in the
second quarter of 2008.

Operating margin was 43.6% for the second quarter of 2009, up 10.2 percentage
points over the year-ago period, excluding special items.

Total other expense was $21 million in the second quarter of 2009 versus total
other income of $10 million in the second quarter of 2008. Interest expense
versus the year-ago period increased $16 million, primarily due to the
interest accretion associated with the litigation settlement that occurred in
the second quarter of 2008.

Excluding special items in both periods, MasterCard's effective tax rate was
35.0% in the second quarter of 2009, versus 35.3% in the comparable period in
2008. Including the special items, the effective tax rate was 35.0% for the
second quarter of 2009, versus 39.0% in the comparable period in 2008. The
difference in the effective tax rate was primarily due to the charge for the
litigation settlement recorded in the second quarter of 2008.

Year-to-Date 2009 Results

For the six months ended June 30, 2009, MasterCard reported net income of $717
million excluding the special item and $716 million including the special
item, or $5.47 per diluted share in both cases.

Net revenue for the six months ended June 30, 2009, was $2.4 billion, or
essentially flat versus the same period in 2008. On a constant currency
basis, net revenue increased 4.5%. Increased processed transactions of 6.9%
and pricing changes of approximately 6 percentage points contributed to the
revenue growth in the year-to-date period. These contributing factors were
partially offset by the impact of lower gross dollar volumes on revenue for
the six months ended June 30, 2009.

Total operating expenses decreased 12.0%, to $1.3 billion, for the six-month
period compared to the same period in 2008, excluding special items for both
periods. Currency fluctuations contributed 3.2 percentage points of this
decrease. Including special items, operating expenses decreased 58.1%, to
$1.3 billion.

Total other expense was $32 million for the six-month period versus total
other income of $183 million for the same period in 2008, including special
items. The decrease was primarily driven by gains from the sale of Redecard
securities and the termination of a customer business agreement in 2008.

MasterCard's effective tax rate, excluding special items, was 34.1% in the six
months ended June 30, 2009, versus a rate of 35.2% in the comparable period in
2008. The decrease in the effective tax rate was primarily due to an
adjustment to deferred taxes reflected in the first quarter of 2009.
Including the special items, the effective tax rate was 34.1% for the 2009
period, and 43.9% for the 2008 period. The difference in the effective tax
rate was primarily due to the impact of the charge for the litigation
settlement in 2008.

Second-Quarter 2009 Financial Results Conference Call Details

At 9:00 a.m. EDT today, the company will host a conference call to discuss its
second-quarter 2009 financial results.

The dial-in information for this call is 866-730-5763 (within the U.S.) and
857-350-1587 (outside the U.S.) and the passcode is 10997135. A replay of the
call will be available for one week thereafter. The replay can be accessed by
dialing 888-286-8010 (within the U.S.) and 617-801-6888 (outside the U.S.) and
using passcode 96583440.

The live call and the replay, along with supporting materials, can also be
accessed through the Investor Relations section of the company's website at
www.mastercard.com.

About MasterCard Incorporated

MasterCard Incorporated advances global commerce by providing a critical
economic link among financial institutions, businesses, cardholders and
merchants worldwide. As a franchisor, processor and advisor, MasterCard
develops and markets payment solutions, processes approximately 21 billion
transactions each year, and provides industry-leading analysis and consulting
services to financial-institution customers and merchants. Powered by the
MasterCard Worldwide Network and through its family of brands, including
MasterCard(R), Maestro(R) and Cirrus(R), MasterCard serves consumers and
businesses in more than 210 countries and territories. For more information
go to www.mastercard.com.

Forward-Looking Statements

Statements in this press release which are not historical facts, including
statements about MasterCard's plans, strategies, beliefs and expectations, are
forward-looking and subject to the safe harbor provisions of the Private
Securities Litigation Reform Act of 1995. Forward-looking statements speak
only as of the date they are made. Accordingly, except for the company's
ongoing obligations under the U.S. federal securities laws, the company does
not intend to update or otherwise revise the forward-looking information to
reflect actual results of operations, changes in financial condition, changes
in estimates, expectations or assumptions, changes in general economic or
industry conditions or other circumstances arising and/or existing since the
preparation of this press release or to reflect the occurrence of any
unanticipated events. Such forward-looking statements include, without
limitation:

-- The company's ability to invest in and be properly positioned for
the future; and

-- The company's ability to continue to benefit from the ongoing shift
toward electronic payments.

Actual results may differ materially from such forward-looking statements for
a number of reasons, including those set forth in the company's filings with
the Securities and Exchange Commission (SEC), including the company's Annual
Report on Form 10-K for the year ended December 31, 2008, the company's
Quarterly Reports on Form 10-Q and Current Reports on Form 8-K that have been
filed with the SEC during 2009, as well as reasons including difficulties,
delays or the inability of the company to achieve its strategic initiatives
set forth above. Factors other than those listed above could also cause the
company's results to differ materially from expected results.

MASTERCARD INCORPORATED
CONSOLIDATED STATEMENTS OF OPERATIONS
(UNAUDITED)

Three Months Ended Six Months Ended
June 30, June 30,
------------------- -----------------
2009 2008 2009 2008
------- ------- ------- -------
(In thousands, except per share data)

Revenues, net $1,279,889 $1,246,504 $2,435,991 $2,428,588
Operating Expenses
General and
administrative 506,004 521,357 953,857 982,982
Advertising and marketing 180,478 281,056 296,447 460,644
Litigation settlements 500 1,649,345 500 1,649,345
Depreciation and
amortization 35,721 27,950 66,708 53,214
------ ------ ------ ------
Total
operating
expenses 722,703 2,479,708 1,317,512 3,146,185
------- --------- --------- ---------
Operating income (loss) 557,186 (1,233,204) 1,118,479 (717,597)
Other Income (Expense)
Investment income, net 13,630 25,685 31,031 140,455
Interest expense (31,771) (15,438) (67,569) (30,756)
Other income (expense),
net (2,599) (225) 4,383 73,297
------ ---- ----- ------
Total other
income (expense) (20,740) 10,022 (32,155) 182,996
------- ------ ------- -------
Income (loss) before
income taxes 536,446 (1,223,182) 1,086,324 (534,601)
Income tax
expense (benefit) 187,567 (476,529) 370,235 (234,826)
------- -------- ------- --------
Net income (loss) 348,879 (746,653) 716,089 (299,775)
Loss attributable to non-
controlling interests 195 - 243 -
--- --- --- ---
Net Income (Loss)
Attributable to
MasterCard $349,074 $(746,653) $716,332 $(299,775)
======== ========= ======== =========

Basic Earnings
(Loss) per Share $2.67 $(5.70) $5.49 $(2.28)
===== ====== ===== ======
Basic Weighted Average
Shares Outstanding 129,743 130,073 129,689 130,750
======= ======= ======= =======
Diluted Earnings
(Loss) per Share $2.67 $(5.70) $5.47 $(2.28)
===== ====== ===== ======
Diluted Weighted Average
Shares Outstanding 130,118 130,073 130,048 130,750
======= ======= ======= =======

MASTERCARD INCORPORATED
CONSOLIDATED BALANCE SHEETS
(UNAUDITED)

June 30, December 31,
2009 2008
--------- ---------
(In thousands, except share data)
ASSETS
Cash and cash equivalents $2,048,194 $1,505,160
Investment securities, at fair value:
Available-for-sale 605,403 588,095
Municipal bonds held-to-maturity - 154,000
Accounts receivable 545,255 639,482
Income taxes receivable - 198,308
Settlement due from customers 625,572 513,191
Restricted security deposits held for customers 243,330 183,245
Prepaid expenses 284,647 213,612
Deferred income taxes 262,764 283,795
Other current assets 75,037 32,619
------ ------
Total Current Assets 4,690,202 4,311,507

Property, plant and equipment, at cost (less
accumulated depreciation of $307,935 and
$278,269) 456,750 306,798
Deferred income taxes 502,161 567,567
Goodwill 300,364 297,993
Other intangible assets (less accumulated
amortization of $393,398 and $377,570) 397,345 394,282
Auction rate securities available-
for-sale, at fair value 187,000 191,760
Municipal bonds held-to-maturity 36,910 37,450
Prepaid expenses 306,757 302,095
Other assets 106,444 66,397
------- ------
Total Assets $6,983,933 $6,475,849
========== ==========

LIABILITIES AND EQUITY

Accounts payable $259,484 $253,276
Settlement due to customers 610,028 541,303
Restricted security deposits held for customers 243,330 183,245
Obligations under litigation settlements 709,835 713,035
Accrued expenses 955,278 1,032,061
Short-term debt - 149,380
Other current liabilities 203,657 118,151
------- -------
Total Current Liabilities 2,981,612 2,990,451
Deferred income taxes 73,668 74,518
Obligations under litigation settlements 772,755 1,023,263
Long-term debt 20,564 19,387
Other liabilities 461,293 436,255
------- -------
Total Liabilities 4,309,892 4,543,874
Commitments
Stockholders' Equity
Class A common stock, $.0001 par value;
authorized 3,000,000,000 shares, 109,663,493
and 105,126,588 shares issued and
116,404,083 and 98,385,998 outstanding,
respectively 11 10
Class B common stock, $.0001 par value;
authorized 1,200,000,000 shares, 19,977,657
and 30,848,778 issued and outstanding,
respectively 3 4
Class M common stock, $.0001 par value;
authorized 1,000,000 shares, 1,772 and
1,728 shares issued and
outstanding, respectively - -
Additional paid-in-capital 3,346,557 3,304,604
Class A treasury stock, at cost,
6,740,590 shares, respectively (1,250,000) (1,250,000)
Retained earnings (accumulated deficit) 440,901 (236,100)
Accumulated other comprehensive income:
Cumulative foreign currency
translation adjustments 186,915 175,040
Defined benefit pension and other
postretirement plans, net of tax (41,320) (43,207)
Investment securities available-
for-sale, net of tax (16,798) (22,996)
------- -------
Total accumulated other comprehensive income 128,797 108,837
------- -------
Total Stockholders' Equity 2,666,269 1,927,355
Non-controlling interests 7,772 4,620
----- -----
Total Equity 2,674,041 1,931,975
--------- ---------
Total Liabilities and Equity $6,983,933 $6,475,849
========== ==========

MASTERCARD INCORPORATED
CONSOLIDATED STATEMENTS OF CASH FLOWS
(UNAUDITED)

Six Months Ended
June 30,
---------------------
2009 2008
--------- ---------
(In thousands)
Operating Activities
Net income (loss) $716,089 $(299,775)
Adjustments to reconcile net income (loss)
to net cash provided by operating
activities:
Depreciation and amortization 66,708 53,214
Gain on sale of Redecard S.A. available-
for-sale securities - (85,903)
Share based payments 40,614 28,989
Stock units settled in cash for taxes (26,506) (66,090)
Tax benefit for share based compensation (25,547) (43,829)
Impairment of assets 15,266 8,900
Accretion of imputed interest on
litigation settlements 49,977 16,124
Deferred income taxes 84,204 (573,927)
Other (760) 5,208
Changes in operating assets and liabilities:
Trading securities - 2,561
Accounts receivable 110,383 (15,809)
Income taxes receivable 190,000 -
Settlement due from customers (108,826) (8,172)
Prepaid expenses (69,897) (75,658)
Other current assets (56,685) (1,723)
Obligations under litigation
settlements (303,685) 1,648,859
Accounts payable 5,230 (272)
Settlement due to customers 67,796 21,577
Accrued expenses (58,548) (155,076)
Net change in other assets and
liabilities 82,270 83,601
------ ------
Net cash provided by operating activities 778,083 542,799
------- -------

Investing Activities
Purchases of property, plant and equipment (25,028) (28,961)
Capitalized software (37,586) (38,784)
Purchases of investment securities
available-for-sale (64,425) (422,739)
Proceeds from sales and maturities of
investment securities, available-for-sale 59,009 737,616
Investment in affiliates (18,084) -
Acquisition of business, net of cash
acquired (2,913) -
Other investing activities 1,307 709
----- ---
Net cash provided by (used in) investing
activities (87,720) 247,841
------- -------

Financing Activities
Dividends paid (39,359) (39,878)
Cash proceeds from exercise of stock
options 2,269 4,656
Tax benefit for share based compensation 25,547 43,829
Purchase of treasury stock - (649,468)
Payment of debt (149,380) (80,000)
Redemption of non-controlling interest (4,620) -
------ ---
Net cash used in financing activities (165,543) (720,861)
-------- --------

Effect of exchange rate changes on cash and
cash equivalents 18,214 40,137
------ ------

Net increase in cash and cash equivalents 543,034 109,916
Cash and cash equivalents - beginning of
period 1,505,160 1,659,295
--------- ---------
Cash and cash equivalents - end of period $2,048,194 $1,769,211
========== ==========

MASTERCARD INCORPORATED OPERATING PERFORMANCE

For the 3 Months ended June 30, 2009

All MasterCard
Credit, Purchase
Charge and GDV Growth Growth Volume
Debit Programs (Bil.) (USD) (Local) (Bil.)
----- ------ ------ ------
APMEA $114 7.5% 17.4% $77
Canada 23 -16.6% -3.4% 20
Europe 173 -15.5% 2.1% 130
Latin America 41 -13.2% 7.0% 22
United States 245 -9.7% -9.7% 202
Worldwide 595 -9.3% -0.6% 450

MasterCard Credit
and Charge Programs
United States 133 -18.7% -18.7% 120
Worldwide less
United States 266 -12.3% 2.8% 218
Worldwide 399 -14.5% -5.5% 338

MasterCard Debit
Programs
United States 112 4.1% 4.1% 82
Worldwide less
United States 84 3.3% 21.9% 31
Worldwide 196 3.8% 11.1% 113

For the 3 Months ended June 30, 2009

All MasterCard
Credit, Purchase Cash
Charge and Growth Trans. Volume Growth
Debit Programs (Local) (Mil.) (Bil.) (Local)
----- ------ ------ ------
APMEA 16.3% 1,010 $37 19.8%
Canada -2.2% 254 3 -11.3%
Europe 3.0% 1,679 43 -0.6%
Latin America 11.2% 463 19 2.2%
United States -8.8% 3,611 43 -13.4%
Worldwide -0.7% 7,017 145 -0.5%

MasterCard Credit
and Charge Programs
United States -15.6% 1,497 13 -39.4%
Worldwide less
United States 5.3% 2,852 49 -7.2%
Worldwide -3.2% 4,350 61 -16.6%

MasterCard Debit
Programs
United States 3.4% 2,114 30 6.3%
Worldwide less
United States 21.4% 553 53 22.2%
Worldwide 7.7% 2,667 83 16.0%

For the 3 Months ended June 30, 2009

All MasterCard
Credit, Cash Acceptance
Charge and Trans. Accounts Cards Locations
Debit Programs (Mil.) (Mil.) (Mil.) (Mil.)
----- ------ ------ ------
APMEA 279 233 256 8.9
Canada 5 35 43 0.8
Europe 284 181 196 8.6
Latin America 140 96 118 3.0
United States 261 300 347 8.1
Worldwide 968 846 959 29.4

MasterCard Credit
and Charge Programs
United States 10 184 220
Worldwide less
United States 251 438 496
Worldwide 261 622 716

MasterCard Debit
Programs
United States 252 116 127
Worldwide less
United States 456 108 116
Worldwide 707 224 242

APMEA = Asia Pacific / Middle East / Africa

For the 6 Months ended June 30, 2009

All MasterCard
Credit, Purchase
Charge and GDV Growth Growth Volume
Debit Programs (Bil.) (USD) (Local) (Bil.)
----- ------ ------ ------
APMEA $216 4.9% 16.7% $145
Canada 42 -18.1% -2.0% 36
Europe 326 -15.8% 2.9% 243
Latin America 78 -14.5% 7.0% 42
United States 483 -8.8% -8.8% 394
Worldwide 1,145 -9.5% -0.2% 861

MasterCard Credit
and Charge Programs
United States 261 -18.0% -18.0% 233
Worldwide less
United States 507 -13.1% 3.6% 412
Worldwide 767 -14.8% -4.9% 645

MasterCard Debit
Programs
United States 222 4.9% 4.9% 160
Worldwide less
United States 155 1.6% 20.9% 56
Worldwide 377 3.5% 10.9% 216

For the 6 Months ended June 30, 2009

All MasterCard
Credit, Purchase Cash
Charge and Growth Trans. Volume Growth
Debit Programs (Local) (Mil.) (Bil.) (Local)
----- ------ ------ ------
APMEA 15.6% 1,941 $71 18.9%
Canada -0.3% 477 6 -11.7%
Europe 3.5% 3,220 82 0.9%
Latin America 10.8% 908 36 2.8%
United States -8.0% 6,945 89 -12.5%
Worldwide -0.2% 13,491 283 -0.2%

MasterCard Credit
and Charge Programs
United States -14.8% 2,885 28 -37.7%
Worldwide less
United States 6.1% 5,516 95 -6.1%
Worldwide -2.5% 8,401 123 -15.7%

MasterCard Debit Programs
United States 4.1% 4,060 62 6.9%
Worldwide less
United States 17.7% 1,030 99 22.7%
Worldwide 7.3% 5,090 161 16.1%

For the 6 Months ended June 30, 2009

All MasterCard
Credit, Cash
Charge and Trans. Accounts Cards
Debit Programs (Mil.) (Mil.) (Mil.)
----- ------ ------
APMEA 534 233 256
Canada 10 35 43
Europe 541 181 196
Latin America 277 96 118
United States 518 300 347
Worldwide 1,880 846 959

MasterCard Credit
and Charge Programs
United States 20 184 220
Worldwide less
United States 489 438 496
Worldwide 509 622 716

MasterCard Debit Programs
United States 498 116 127
Worldwide less
United States 872 108 116
Worldwide 1,371 224 242

For the 3 Months ended June 30, 2008

All MasterCard
Credit, Purchase
Charge and GDV Growth Growth Volume
Debit Programs (Bil.) (USD) (Local) (Bil.)
----- ------ ------ ------
APMEA $106 28.1% 21.5% $72
Canada 27 22.2% 12.4% 24
Europe 205 30.8% 17.9% 151
Latin America 47 26.4% 17.3% 24
United States 271 6.2% 6.2% 221
Worldwide 656 18.4% 13.0% 493

MasterCard Credit and
Charge Programs
United States 163 0.7% 0.7% 142
Worldwide less
United States 303 27.2% 17.3% 242
Worldwide 467 16.5% 10.9% 384

MasterCard Debit Programs
United States 107 15.9% 15.9% 79
Worldwide less
United States 81 35.1% 22.5% 30
Worldwide 189 23.5% 18.7% 109

For the 3 Months ended June 30, 2008

All MasterCard
Credit, Purchase Cash
Charge and Growth Trans. Volume Growth
Debit Programs (Local) (Mil.) (Bil.) (Local)
----- ------ ------ ------
APMEA 23.6% 843 $33 17.3%
Canada 13.5% 244 4 5.9%
Europe 18.4% 1,567 53 16.4%
Latin America 19.9% 435 23 14.6%
United States 8.0% 3,489 50 -0.9%
Worldwide 14.0% 6,578 163 10.2%

MasterCard Credit and
Charge Programs
United States 2.8% 1,590 21 -11.3%
Worldwide less
United States 19.8% 2,644 62 8.4%
Worldwide 12.9% 4,234 83 2.5%

MasterCard Debit Programs
United States 18.7% 1,899 28 8.8%
Worldwide less
United States 16.4% 446 52 26.4%
Worldwide 18.1% 2,345 80 19.5%

For the 3 Months ended June 30, 2008

All MasterCard
Credit, Cash
Charge and Trans. Accounts Cards
Debit Programs (Mil.) (Mil.) (Mil.)
----- ------ ------
APMEA 215 204 223
Canada 5 31 38
Europe 272 175 189
Latin America 141 86 106
United States 258 334 391
Worldwide 891 830 947

MasterCard Credit and
Charge Programs
United States 15 224 274
Worldwide less
United States 253 421 475
Worldwide 268 644 749

MasterCard Debit Programs
United States 243 110 117
Worldwide less
United States 380 75 81
Worldwide 623 185 198

For the 6 Months ended June 30, 2008

All MasterCard
Credit, Purchase
Charge and GDV Growth Growth Volume
Debit Programs (Bil.) (USD) (Local) (Bil.)
----- ------ ------ ------
APMEA $206 28.2% 20.8% $141
Canada 51 26.4% 12.7% 44
Europe 387 30.6% 17.7% 287
Latin America 91 27.5% 19.0% 47
United States 530 7.5% 7.5% 428
Worldwide 1,265 19.2% 13.6% 946

MasterCard Credit and
Charge Programs
United States 318 2.5% 2.5% 274
Worldwide less
United States 583 28.2% 17.5% 462
Worldwide 901 17.8% 11.7% 736

MasterCard Debit
Programs
United States 212 16.1% 16.1% 154
Worldwide less
United States 153 33.3% 21.6% 56
Worldwide 365 22.8% 18.4% 210

For the 6 Months ended June 30, 2008

All MasterCard
Credit, Purchase Cash
Charge and Growth Trans. Volume Growth
Debit Programs (Local) (Mil.) (Bil.) (Local)
----- ------ ------ ------
APMEA 23.2% 1,641 $65 15.9%
Canada 13.3% 456 8 9.3%
Europe 18.2% 3,015 100 16.4%
Latin America 21.3% 851 44 16.6%
United States 9.1% 6,742 102 1.5%
Worldwide 14.5% 12,705 320 10.9%

MasterCard Credit and
Charge Programs
United States 4.3% 3,079 44 -7.7%
Worldwide less
United States 19.8% 5,111 120 9.5%
Worldwide 13.5% 8,190 165 4.3%

MasterCard Debit Programs
United States 18.7% 3,663 58 9.8%
Worldwide less
United States 15.8% 852 97 25.2%
Worldwide 17.9% 4,515 155 19.0%

For the 6 Months ended June 30, 2008

All MasterCard
Credit, Cash
Charge and Trans. Accounts Cards
Debit Programs (Mil.) (Mil.) (Mil.)
----- ------ ------
APMEA 411 204 223
Canada 10 31 38
Europe 518 175 189
Latin America 276 86 106
United States 511 334 391
Worldwide 1,727 830 947

MasterCard Credit and
Charge Programs
United States 30 224 274
Worldwide less
United States 497 421 475
Worldwide 527 644 749

MasterCard Debit Programs
United States 481 110 117
Worldwide less
United States 719 75 81
Worldwide 1,200 185 198

Note that columns in the tables above may not add due to rounding; growth
represents change from the comparable year-ago period.

Footnote

The tables set forth the gross dollar volume ("GDV"), purchase volume, cash
volume and the number of purchase transactions, cash transactions, accounts,
cards and acceptance locations on a regional and global basis for
MasterCard(R)-branded and MasterCard Electronic(TM)-branded cards. Growth
rates over prior periods are provided for volume-based data.

Debit transactions on Maestro(R) and Cirrus(R)-branded cards, Mondex(R)
transactions and transactions involving brands other than MasterCard are not
included in the preceding tables.

For purposes of the table: GDV represents purchase volume plus cash volume and
includes the impact of balance transfers and convenience checks; "purchase
volume" means the aggregate dollar amount of purchases made with
MasterCard-branded cards for the relevant period; and "cash volume" means the
aggregate dollar amount of cash disbursements obtained with MasterCard-branded
cards for the relevant period. The number of cards includes virtual cards,
which are MasterCard-branded payment accounts in connection with which
functional cards are not generally issued. Acceptance locations include
merchant locations, ATMs and other locations where cash may be obtained.

The MasterCard payment product is comprised of credit, charge and debit
programs, and data relating to each type of program is included in the tables.
Debit programs include MasterCard-branded debit programs where the primary
means of cardholder validation at the point of sale is for cardholders either
to sign a sales receipt or enter a PIN. The tables include information with
respect to transactions involving MasterCard-branded cards that are not
processed by MasterCard and transactions for which MasterCard does not earn
significant revenues.

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 MasterCard volumes are reported. These exchange rates are calculated
on a quarterly basis using the average exchange rate for each quarter.
MasterCard reports period-over-period rates of change in purchase volume and
cash volume on the basis of local currency information, in order to eliminate
the impact of changes in the value of foreign currencies against the U.S.
dollar in calculating such rates of change.
The data set forth in the GDV, purchase volume, purchase transactions, cash
volume and cash transactions columns is provided by MasterCard customers and
is subject to verification by MasterCard and partial cross-checking against
information provided by MasterCard's transaction processing systems. The data
set forth in the accounts and cards columns is provided by MasterCard
customers and is subject to certain limited verification by MasterCard. A
portion of the data set forth in the accounts and cards columns reflects the
impact of routine portfolio changes among customers and other practices that
may lead to over counting of the underlying data in certain circumstances. In
order to provide a true indication of how broadly our cards can be used,
MasterCard seeks to provide the most accurate acceptance figures possible and
to maintain that MasterCard acceptance is unsurpassed worldwide by
periodically validating our results with third parties. The data set forth in
the acceptance locations column is derived through a proprietary methodology
designed to minimize the impact of multiple acquiring in certain markets.
This data is based on information provided by our customers and other third
parties and is subject to certain limited verification by MasterCard and
partial cross-checking against information provided by MasterCard's
transaction processing systems. All data is subject to revision and amendment
by MasterCard's customers subsequent to the date of its release.

Performance information for prior periods can be found in the "Investor
Relations" section of MasterCard's website at www.mastercard.com.

MasterCard Inc.
GAAP Reconciliation
($ millions except per share data)

Three Months ended June 30, 2009
-------------------------------------
Actual Special Item Non-GAAP
------ ------------ ---------
Litigation settlements $1 $(1) a $-
Total operating expenses 723 (1) 722
Operating income (loss) 557 1 558
Operating Margin 43.5% 43.6%
Income (loss) before income
taxes 536 1 537
Income taxes (benefit) 187 - 188
Net Income (Loss) $349 $- $349

Basic Net Income (Loss)
per Share $2.67 $0.01 $2.68
Diluted Net Income (Loss)
per Share $2.67 - $2.67

Three Months ended June 30, 2008
-------------------------------------
Actual Special Item Non-GAAP
------ ------------ ---------
Litigation settlements $1,649 $(1,649) a $-
Total operating expenses 2,480 (1,649) 830
Operating income (loss) (1,233) 1,649 416
Operating Margin (98.9%) 33.4%
Income (loss) before
income taxes (1,223) 1,649 426
Income taxes (benefit) (477) 627 150
Net Income (Loss) $(747) $1,023 $276

Basic Net Income (Loss)
per Share ($5.70) c $7.80 c $2.10 c
Diluted Net Income (Loss)
per Share ($5.70) c $7.80 c $2.10 c

Six Months ended June 30, 2009
-------------------------------------
Actual Special Item Non-GAAP
------ ------------ ---------
Litigation settlements $1 $(1) a $-
Total operating expenses 1,318 (1) 1,317
Operating income (loss) 1,118 1 1,119
Operating Margin 45.9% 45.9%
Other income (expense), net 4 - 4
Total other income (expense) (32) - (32)
Income (loss) before income
taxes 1,086 1 1,087
Income taxes (benefit) 370 - 370
Net Income (Loss) $716 $- $717

Basic Net Income (Loss)
per Share $5.49 - $5.49
Diluted Net Income (Loss)
per Share $5.47 - $5.47

Six Months ended June 30, 2008
-------------------------------------
Actual Special Items Non-GAAP
------ ------------- ---------
Litigation settlements $1,649 $(1,649) a $-
Total operating expenses 3,146 (1,649) 1,497
Operating income (loss) (718) 1,649 932
Operating Margin (29.5%) 38.4%
Other income (expense), net 73 (75) b (2)
Total other income
(expense) 183 (75) 108
Income (loss) before income
taxes (535) 1,574 1,040
Income taxes (benefit) (235) 601 366
Net Income (Loss) $(300) $973 $674

Basic Net Income (Loss)
per Share $(2.28) c $7.39 c $5.11 c
Diluted Net Income (Loss)
per Share $(2.28) c $7.38 c $5.10 c

a - Litigation settlements
b - Gain from the termination of a customer business agreement
c - Amounts have been revised to conform with the adoption of FSP
EITF 03-06-1, please refer to our March 31, 2009 Form 10-Q filing

Note that the figures in the preceding tables may not sum due to rounding

Reconciliation to Effective Tax Rate for the American Express Litigation
Settlement

Actual Non-GAAP
(In millions, except Effective Special Effective
percentages) Actual Tax Rate Item Non-GAAP Tax Rate
-------------------- ------- -------- ------ -------- --------
Three months ended
June 30, 2008:

Income (loss) before
income taxes $(1,223) 39.0% $1,649 $426 35.3%
Income tax expense (benefit) (477) 627 150
Net income (loss) $(747) $1,023 $276

Six months ended
June 30, 2008:

Income (loss) before income
taxes $(535) 43.9% $1,649 $1,114 35.2%
Income tax expense (benefit) (235) 627 392
Net income (loss) $(300) $1,023 $722

Note that the figures in the preceding tables may not sum due to rounding

For more information about these reconciliations, refer to MasterCard
Incorporated's Form 8-K filed with the Securities and Exchange Commission on
July 30, 2009.

SOURCE MasterCard Incorporated

Investor Relations: Barbara Gasper, investor_relations@mastercard.com,
914-249-4565; Media Relations: Chris Monteiro, chris_monteiro@mastercard.com,
914-249-5826