Annual Report 2019 Annual Report 2019 Advancing the growth of digital payments. Visa enables money movement for everyone, everywhere. In 2019, we made significant strides in advancing our goal to be a single connection point for initiating any transaction, both on the Visa network and beyond. YEAR-END FINANCIAL HIGHLIGHTS Operational Highlights 12 months ended September 30 (except where noted) 2017 2018 2019 Total volume, including payments and cash volume1 $10.3 T $11.3 T $11.6 T Payments volume1 $7.4 T $8.3 T $8.8 T Transactions processed on Visa’s networks 111.2 B 124.3 B 138.3 B Cards2 3.2 B 3.3 B 3.4 B Financial Highlights (GAAP) In millions (except for per share data) FY 2017 FY 2018 FY 2019 Net revenues $18,358 $20,609 $22,977 Operating expenses $6,214 $7,655 $7,976 Operating income $12,144 $12,954 $15,001 Net income $6,699 $10,301 $12,080 Stockholders’ equity $32,760 $34,006 $34,684 Diluted class A common stock earnings per share $2.80 $4.42 $5.32 Financial Highlights (Non-GAAP)3 In millions (except for per share data) FY 2017 FY 2018 FY 2019 Net revenues $18,358 $20,609 $22,977 Operating expenses $6,022 $6,860 $7,606 Operating income $12,336 $13,749 $15,371 Net income $8,335 $10,729 $12,367 Diluted class A common stock earnings per share $3.48 $4.61 $5.44 1 Total volume is the sum of payments volume and cash volume. Payments volume is the total monetary value of transactions for goods and services that are purchased on cards carrying the Visa, Visa Electron, Interlink and V PAY brands. During fiscal year 2019, Visa updated the definition of payments volume to now include all disbursment volume related to Visa Direct, in addition to the funding volume previously included. All prior periods presented have been adjusted accordingly. 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. 2 These figures represent data at June 30, 2019, June 30, 2018 and June 30, 2017. 3 For further discussion of fiscal years 2019, 2018 and 2017 non-GAAP operating expenses, operating income, net income and diluted earnings per share, see Item 7 - Management’s Discussion and Analysis of Financial Condition and Results of Operations - Overview - non-GAAP financial results in this Annual Report. 2 VISA Stock Performance The 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, 2014 through September 30, 2019. The comparison assumes $100 was invested on September 30, 2014, 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 system. Base period Indexed Returns (Fiscal Year Ended) Company / Index 9/30/14 9/30/15 9/30/16 9/30/17 9/30/18 9/30/19 Visa Inc. $100 $132 $157 $202 $289 $334 S&P 500 Index $100 $99 $115 $136 $160 $167 S&P 500 Data $100 $119 $139 $182 $258 $303 Processing Index Visa Inc. S&P 500 Index S&P 500 Data Processing Index $350 $300 $250 $200 $150 $100 9/30/14 9/30/15 9/30/16 9/30/17 9/30/18 9/30/19 ANNUAL REPORT 2019 3 CHAIRMAN AND CEO LETTER Dear Shareholders, Over the last 12 months, Visa made Value-Added Services tremendous progress leading a dynamic industry and advancing the growth of digital payments globally. Against a backdrop of geopolitical challenges and Consulting & Analytics uneven global economic conditions, Merchant & Acquirer Fraud Management Visa delivered outstanding financial and Solutions & Security Services operating results. New Payment Flows Core Products Visa is not only a facilitator of payments between Visa has a rich legacy of aligning our business As part of the World Bank’s goal of Universal consumers and businesses. With new ways to and our purpose, and that is more relevant Financial Access by 2020, we committed to pay, we are evolving into a company that enables now than at any time in our 60-plus year helping provide financial access to 500 million G2C Tap to Pay Partnerships money movement for everyone, everywhere. history. Our investments and partnerships consumers by 2020. At the end of fiscal year P2P In fiscal year 2019, we made significant strides have always focused on ensuring we drive 2018, we reached 396 million consumers in advancing our goal to be a single connection shareholder value while delivering inclusive worldwide with first-time access to a digital Core point for initiating any transaction, both on the societal value. We strongly support the payment product through a Visa-branded Business Visa network and beyond. increased focus on purpose among business account and are confident we will make our leaders. That is why we were proud to sign 500 million commitment by the end of the In this year’s letter, I highlight the factors that the Business Roundtable revised Statement of 2019 calendar year. Ecommerce drove our strong results and the strategies Purpose in August. Ventures we put in place to secure our long-term Later in this letter, I outline the other steps success, including: Of course, Visa is a global enterprise and we we are taking to advance Visa’s mission and Access & are working towards building an economy operate as a responsible corporate citizen. Acceptance 1. Growing Our Core Business that serves everyone across the world. We 2. Expanding Partnerships do this by investing in our employees and Growing Our Core Business the communities where they live, operating 3. Opening New Payment Flows responsibly and ethically, and focusing on B2C B2B 4. Enhancing Our Value-Added Services driving unparalleled value to our clients. Consumer expectations are increasing by the day. To respond, Visa continues to improve 5. Strengthening Our Foundation Most importantly, we advance societal goals the point-of-sale experience, ensuring digital 6. Driving Purpose With Impact through our core business — the digitization payments are easier, secure, more seamless, 7. Leading Through Change of money. and more readily available for buyers and sellers, whether they are transacting in person or online. Foundation 4 VISA Technology Security & Privacy Brand Talent Strengthening Visa’s role in enabling money movement globally Advancing our goal to be a single connection point for every transaction, everywhere, both on the Visa network and beyond. Value-Added Services Consulting & Analytics Merchant & Acquirer Fraud Management Solutions & Security Services New Payment Flows Core Products G2C P2P Tap to Pay Partnerships Core Business Ecommerce Ventures Access & Acceptance B2C B2B Foundation Technology Security & Privacy Brand Talent CHAIRMAN AND CEO LETTER Ecommerce Digital commerce growth is outpacing physical retail growth, presenting an opportunity to evolve both the security and consumer experience around ecommerce. In fiscal year 2019, we continued the successful implementation of our Visa Token Service, and the service is now live in 100 markets, with 410 million tokens issued to date. The technology works by replacing a consumer’s card-related sensitive information, such as personal account number, with a unique identifier, or token, which protects transactions when a card or shopper is not physically present. Today, Apple Pay, Google Pay, Netflix and Samsung Pay use Visa Token Service. The combination of Visa’s network tokenization functionality with the local and account tokenization capabilities we acquired from Rambus Inc. will facilitate safer, more Tap to Pay secure payments across a broader range of Tap to pay is a powerful technology that payment types. accelerates our efforts to move the $17 Outside the U.S., trillion of global consumer spending done in While online and mobile commerce continues tap to pay represents cash and check to our network. Outside the to thrive, the many checkout buttons on any more than 50% U.S., tap to pay now represents more than given site make the consumer experience of face-to-face 50 percent of face-to-face transactions that confusing, and difficult for merchants to transactions run over our network, up from less than 30 implement and manage. In the latter part of percent just two years ago. For a number of fiscal year 2019, Visa, alongside the other major reasons, the U.S. has lagged behind most networks, continued the roll-out of click to pay, developed countries in adopting tap to pay. enabled by Secure Remote Commerce (SRC). During the year, we made great strides in The goal was to help address this problem deploying the technology in the U.S. There are and transform the ecommerce checkout now over 100 million Visa contactless cards in experience to emulate what we did in the the U.S. and more than 80 out of Visa’s top 100 face-to-face environment years ago by having merchants in the U.S. have enabled customers just one terminal for all payment options. to tap to pay at checkout. SRC establishes a standardized way to make card payments across web and mobile sites, Transit continues to be a compelling use case mobile apps and connected devices for the to turn consumers on to tapping as riding first time. In October, we went live with select public transportation to and from work, home U.S. merchants and expect a full commercial or school is a critical part of daily life.