COMPANY ANALYSIS COMPARISON PRESENTATION CREATED PRESENTED BY DEMARIUS

COMPANY ANALYSIS & COMPARISON PRESENTATION CREATED & PRESENTED BY: DEMARIUS MCKEE, KEVIN WAIT, AND SOM BHANDARI

COMPANY OVERVIEW ABOUT COMPANY “A global payment and technology company. 36% of their business is done internationally. ” MARKET CAP – 132. 5 B TOTAL REVENUE – 12. 09 B FOUNDED IN 1958 HEADQUARTERED IN FOSTER CITY, CALIFORNIA

COMPANY OVERVIEW ABOUT COMPANY “A global payment and technology company. 61% of their business is done internationally. ” MARKET CAP – 119. 8 B TOTAL REVENUE – 8. 35 B FOUNDED IN 1966 HEADQUARTERED IN PURCHASE, NEW YORK

COMPANY OVERVIEW ABOUT COMPANY “A credit card lender and global payment company. 17% of their business is done internationally. ” MARKET CAP – 92. 2 B TOTAL REVENUE – 30. 86 B FOUNDED IN 1850 HEADQUARTERED IN NEW YORK, CITY

INDUSTRY OVERVIEW 2011 2010

COMMON-SIZED INCOME STATEMENT

COMMON-SIZED BALANCE SHEET

ASSET EFFICIENCY & LIQUIDITY ANALYSIS MASTERCARD 2011 2010 AMEX 2009 2011 2010 VISA 2009 3. 00 Sales to Working Capital Acid-Test Ratio 2. 00 1. 00 Current Ratio 2011 2010 2009

CAPITAL RATIO ANALYSIS DEBT/EQUITY RATIO DEBT RATIO 2009 2010 2009 2011 80% 800% 600% 2010 MASTERCARD 40% 400% 200% MASTERCARD 0% AMEX VISA 0% AMEX 2011 VISA

MARGIN EFFICIENCY ANALYSIS MASTERCARD 2009 2010 2011 AMEX 2009 2010 MASTERCARD VISA 2011 60% OPERATING INCOME MARGIN 2009 2010 2011 AMEX 2009 2010 2009 20% NET INCOME MARGIN 15% 10% 20% 5% 0% 2011 25% ROA % 40% VISA 0% ROI % 2010 2011

EARNINGS & DIVIDEND ANALYSIS MASTERCARD AMEX VISA 2009 2010 2011 ROE % 35% 46% 13% 25% 30% 12% 15% PAYOUT RATIO % 10. 25% 4. 28% 4. 04% 51. 28% 21. 64% 17. 65% 13. 52% 12. 45% 11. 64% EPS GROWTH % 117% 26% 5% -34% 118% 23% 210% 23% 29%

EQUITY VALUATION ANALYSIS MASTERCARD 2009 2010 AMEX 2011 2009 2010 VISA 2011 30. 00 2009 2010 2011 10. 00 PRICE/EARNINGS PRICE/BOOK VALUE 9. 00 25. 00 20. 00 8. 00 7. 00 6. 00 15. 00 4. 00 10. 00 5. 00 3. 00 2. 00 1. 00 - -

RECOMMENDATION I. MARKET-SHARE LEADER II. CHEAP P/BV III. KILLER CURRENT RATIO IV. STABLE EPS GROWTH

POST-PERIOD FINDINGS

Q&A