Half of the business is generated outside of the United States, in regions which are currently experiencing better economic conditions thus the global business model adds diversification to the revenue base.

- The secular shift from paper to electronic forms of payment continues to be strong despite a challenging economic environment in the United States.
- Since the firm does not issue cards, it does not have the risk of credit write-offs, as it is not directly exposed to consumer debt.
- On the legal and regulatory front in December, the firm received a ruling from the European Commission with respect to cross border interchange rates, but there is no immediate direct impact on financials.
- Plans re underway to file an appeal with the European Court of First Instance, by the beginning of March.

Update on the Single European Payments Area (SEPA):

- Migration agreements have been completd from national use only brands to Mystro, for about 20 million cards, Germany, Italy, Ireland, Portugal and the Netherlands.
- All of these agreements cover brands and some also include domestic processing, which is incremental to all offering debit cards, which had already migrated to Mystro.

Additionally, domestic transactions on all cards issued to the Mystro logo can now be routed through the network if an acquirer or merchant chooses to do so.

- As a result, the firm has now started processing some domestic transactions on over a 140 million cards, during both the domestic and Mystro brands in Ireland, Portugal, Italy, Austria, The Netherlands, and Germany.
- Thus even if a bank does not migrate their national branch to Mystro, MasterCard can still gain incremental domestic processing business.
Fiscal 2008 Outlook:

- The firm expects slower net revenue growth than 2007, but still at double-digit rates.
- G&A expenses should grow to a rate that is both slower than net revenue growth and below the 2007 G&A growth rate.
- Advertising and marketing expenses are anticipated to continue modest growth particularly to support efforts in international markets.

Key questions and answers from the fourth quarter earnings call conducted by Mastercard Inc. on January 31, 2008.

Adam Frisch (UBS): What are your near-term expectations for Europe, and can you maintain your growth and margins in that part of the world?

Robert W. Selander: We have great opportunities in that marketplace. We are beginning to see some of the things that the financial institutions and MasterCard have been working on for years come to fruition with some of these debit deals as we begin the plastic branded cards.

Mystro is now cross-border brand, enabling us not only to capture some additional business when they convert completely to Mystro, but also to capture what otherwise would have been other types of process transactions.

Anurag Rana (Keybanc Capital Markets): We have observed a divergence between GDV growth rates and the overall revenue growth rates. As we look ahead, how should we model this relationship between the two?

Robert W. Selander: One of our strategies has been to broaden our offerings to our customers, and that means that we may go in and provide services, which do not necessarily generate an incremental dollar volume. At the end of the day, those things derive revenue, but do not necessarily drive GDV.

Martina Hund-Mejean: When you look at year-over-year, 2006 to 2007, you can put it all together that the underpinning is the local GDV growth, the process transaction, but the increased rate was really driven mostly by cross-border volume, and that was a little bit over lower incentive growth.

Anurag Rana (Keybanc Capital Markets): Could you please give us some more details regarding the number of transactions that you processed on your own network in Europe?

Robert W. Selander: It was $5.2 billion globally and over $18 billion globally for the year. We have opportunities for faster growth rates in Europe. We did a lot of domestic processing in USA, Canada, Brazil, Australia and most of the other markets around the world have very small proportion of our own branded transactions that we process.

Moshe Katri (Cowen & Co.): Was there any major change in gross dollar volume growth during the month of December given the slowdown in consumer spending?

Robert W. Selander: We had a strong fourth-quarter and in particular within the U.S., we saw a higher growth rate in the fourth quarter versus the prior year than we had seen in the third quarter. We do not track or report the monthly GDV numbers, but we do have through MasterCard advisors our spending pulse data, which we do report out.

In the month of October we had about a 7.5% year-over-year growth rate, November about 8.2%, and December was about 6.4% versus the prior year. So those were all good numbers, but there was a downturn from November to December.

Moshe Katri (Cowen & Co.): How much can a decline in GDV growth be offset by declining contra-revenues from payment incentives?