Looking Ahead - Thoughts for 2023

Appendix A (continued) Non-GAAP Reconciliation Three Months Ended December 31, 2022 as compared to the Three Months Ended December 31, 2021 Increase/(Decrease) Reported GAAP 1 Net revenue 12% ** Operating expenses Operating income 10 % 13 % Operating margin 0.6 ppt Effective income tax rate Net income Diluted earnings per share 2.5 ppt 6% 9% ** ** 1.0 ppt 3 % 4 % (Gains) losses on equity investments Litigation provisions 2 ** (1)% 1 % 0.3 ppt ppt 1 % - % Adjusted Non-GAAP 12 % 10% 13 % 0.8 ppt 3.5 ppt 10% 13 % Currency impact 3 Adjusted Non-GAAP - currency-neutral 5% 17 % 4 % 6% 0.5 ppt 0.2 ppt 6% 7 % 13 % 19 % 1.3 ppt 3.7 ppt 16% 19 % Note: Figures may not sum due to rounding. ** Not applicable. 1 Q4'22 pre-tax net losses of $12 million and Q4'21 pre-tax net gains of $111 million were related to realized and unrealized fair market value adjustments on marketable and non-marketable equity securities. Q4'22 pre-tax charges of $15 million as a result of settlements (both final and agreements in principle) with a number of U.K. merchants. 2 Represents the translational and transactional impact of currency and the related impact of the company's foreign exchange derivative contracts designated as cash flow hedging instruments. January 26, 2023 12 ©2022 Mastercard

View entire presentation