PowerPoint Presentation

[Virtual Presenter] The company has been focusing its efforts on expanding its global reach through various initiatives such as partnerships with major airlines, hotels, and other travel companies. This includes collaborations with leading payment processors like Mastercard and American Express. By leveraging these partnerships, Visa aims to increase its presence in emerging markets and tap into new revenue streams. Visa's global payments strategy involves offering a range of services that cater to different customer segments, including individuals, businesses, and governments. The company provides a variety of payment solutions, including credit cards, debit cards, and digital wallets, which are accepted by millions of merchants worldwide. According to data from 2022, Visa's transaction volume was approximately $1.8 trillion, with a compound annual growth rate (CAGR) of around 10%. This indicates a strong upward trend in the company's financial performance. Market analysts predict that Visa's transaction volume will continue to grow at a CAGR of around 9% per annum until 2030. Based on this projection, Visa's total transaction volume is expected to reach $3.5 trillion by 2030. Visa's focus on emerging markets is driven by the growing demand for digital payments among consumers in these regions. As a result, the company is investing heavily in developing its infrastructure and capabilities to support this growth. In addition to its global expansion efforts, Visa is also working to improve its operational efficiency and reduce costs. The company is implementing various cost-saving measures, such as streamlining its supply chain and optimizing its technology platforms. Overall, Visa's strategic approach to expanding its global reach and improving its operational efficiency positions the company well for long-term success..

[Audio] Visa's core strategic pillars are the foundation for its future growth. The network of networks pillar focuses on expanding payment networks beyond traditional card rails. This includes B2B, G2C, and P2P payments facilitated through Visa Direct and B2B Connect. The value-added services pillar drives high-margin revenue through advanced solutions such as cybersecurity and consulting. These services enhance customer experience and protect against potential risks. The tech innovation pillar leverages cutting-edge technologies like artificial intelligence to prevent fraud and optimize real-time settlement processes. By focusing on these three pillars, Visa aims to create a robust and sustainable business model..

[Audio] International transactions have generated substantial revenue for the company, resulting in its highest margin contribution. The primary reason for this is the complex fee structure associated with cross-border payments..

[Audio] Visa's Return on Invested Capital (ROIC) has been increasing steadily over the past five years. In 2021, ROIC was 21.3%, while by 2025 it had risen to 34.8%. This represents a significant improvement in Visa's ability to generate profits from its investments. The company's Free Cash Flow (FCF) has also experienced substantial growth. By 2025, FCF had reached an impressive $21 billion. This increase in cash flow suggests that Visa is generating more than enough funds to cover its expenses and invest in new opportunities. Visa's Shares Outstanding (Diluted) have decreased significantly since 2021. At that time, there were 2.44 billion shares outstanding, but this number had dropped to 2.10 billion by 2025. This reduction in shares can be attributed to Visa's efforts to conserve capital and improve its financial efficiency. Overall, these metrics demonstrate Visa's strong financial health and position it well for future growth and success..

[Audio] The company has developed three distinct financial scenarios for the next ten years, which are based on different market trends. The Bull Case represents a strong economic recovery with high growth rates and increased investor confidence. The Base Case represents a more moderate economic environment with steady growth rates and stable investor sentiment. The Bear Case represents a weak economic recovery with low growth rates and decreased investor confidence. Each scenario is driven by different market catalysts and considers various factors such as growth rates, earnings per share, and valuation multiples. The company aims to provide a comprehensive overview of the potential financial outcomes for each scenario. The financial projections cover a range of possibilities from very optimistic to very pessimistic, allowing investors to make informed decisions about their investments. The company will continue to monitor and update its financial projections regularly to reflect changes in the market environment..

[Audio] The company will experience significant acceleration in its value-added services and business-to-business sales due to advancements in artificial intelligence. As a result, investors should consider applying a premium price-to-earnings (P/E) multiplier of 33.0x to estimate the company's future stock price. The estimated annual growth rate of 18% suggests that the company's stock price could potentially exceed $820 by 2030, leading to a substantial total return of nearly 155%..

[Audio] The base case scenario assumes a steady growth rate of 13% per annum, supported by ongoing share buybacks and a high price-to-earnings ratio of 28 times. This results in a projected stock price of approximately $586 by 2030, representing a total return of around 82%. The key drivers behind this projection include: Consistent 13% growth supported by buybacks A 28.0x P/E multiplier applied This combination of factors leads to a significant increase in the company's value over time, making it an attractive investment opportunity..

[Audio] The Bear Case scenario assumes that regulatory scrutiny and competition from Real-Time Payment systems will slow down the company's growth to 8%. Even with a lower 24.0x P/E multiplier, the projected price is still around $418. The key drivers behind this scenario are regulatory challenges and competition from RTP systems, which could impact the company's ability to grow its earnings per share. However, even under these challenging conditions, the company's stock price is projected to increase, albeit at a slower pace than in other scenarios. The implications of this scenario are significant, as it highlights the importance of managing risk and adapting to changing market conditions. By understanding the potential risks and challenges associated with this scenario, investors can better prepare themselves for the future and make more informed decisions..

[Audio] The company's significant share repurchases have been a cornerstone of its financial strategy. The repurchase program allows the company to maintain a stable EPS growth rate by reducing the number of outstanding shares. This reduction in shares leads to an increase in EPS, as each remaining share represents a larger portion of the total earnings. The repurchase program also helps to reduce volatility in the stock price, making it more attractive to investors. By continuously purchasing shares, the company can maintain a synthetic floor for EPS growth, which ensures a steady trajectory for the company's financial performance. The repurchase program enables the company to achieve its long-term goals, such as increasing EPS and maintaining a strong market position..

[Audio] The company has been performing well over the years, with significant growth in revenue and profits. The company's leadership has been instrumental in driving this success, making it a leader in the industry. The company's financials are robust, with a high return on investment (ROIC) of 34%. This makes it an attractive option for investors seeking stable returns. The company's management team has a proven track record of success, which will likely enable them to maintain their competitive edge. The company's expansion plans are ambitious, but they are expected to pay off in the long run. The company's stock price is expected to rise significantly over the next decade, reaching $586 by 2030. This represents a substantial increase from current levels, making it an attractive buy for investors. The company's unique advantages make it an attractive option for those looking for stable returns. The company's ability to adapt to changing market conditions is also noteworthy, demonstrating its resilience and strength. Overall, the recommendation is to buy the company's stock now..