Mastercard Incorporated (MA) Earnings Call Transcript & Summary

Good morning. Thank you all for coming here to our 2024 Mastercard Investor Community Day. Very excited to have you all here in person. We have a full room here, and thank you for joining for those on the webcast. Those here in person, I hope you had some time to get to the product demos upstairs earlier. If not, don't worry. There'll be plenty of time later today. I'm just going to take a few minutes to talk through a bit of the agenda for the day before we switch over to the main presenters. We'll be here in the main room for presentations for about 3 hours. There will be a break in the middle. There'll be about 30 minutes of Q&A at the end. Here, you'll hear from multiple leaders of Mastercard, both in person as well as Sachin joining us remotely. We have handed out in this room books as well as they're posted on the website. Please note the presentations may not follow page by page. So just check where we are on the screens or online. For those of you flipping all the way ahead to Sachin's presentation now, I agree. It's exciting. Get it over with. I don't want you doing that when Michael gets up on stage in a few minutes. After the main session, the webcast will end. But for those of you here, please don't go home. We still have a lot in store. The demos, as I mentioned, will be open till 3:00 in Freedom Hall. Also at 12:00, we'll have a lunch with multiple members of our Board of Directors. We have Merit Janow, Lance Uggla and Richard Davis here today. They'll be in the Hamilton room with an open table for you to sit down and have a dialogue around how does our Board interact with Mastercard, how does our Board think about our strategy, or anything else you want to ask them as long as it relates to Mastercard. At 1:00, we'll have breakout sessions. There'll be 4 sessions. I'll talk more about those later where they are. There'll be one, one again at 1:45, and the day will end at 3:00. So please dig around, we have a lot for you. Now the most exciting part of my presentation, forward-looking statements. Can we move the slide forward because these ones, I have to read. These forward-looking statements are based on our current assumptions. We may make forward-looking statements today with expectations and projections about future events, which reflect the best judgment of management and involve a number of risks and uncertainties that could cause actual results to differ materially from those suggested by our comments today. You should review and consider the information contained in our filings with the SEC regarding these risks and uncertainties. Please look online or in your books for any of our SEC filings as well as for any of the non-GAAP and GAAP reconciliation about anything we talk about today. With that, let's get started. I'd like to welcome Michael Miebach to the stage after a short video. [Presentation]

Two people applauded, two. I mean, come on. So you saw it in the video. We're leaning into the future, and we're shaping it. And when we do that, we create this virtuous cycle of growth, no end, no beginning, an infinite loop. What a clever trick of our marketing team, the loop. You're going to see it throughout today. Keep that in the back of your mind. Virtuous circle of growth, that's the future, and that's Mastercard. And with that, I also want to welcome you to our 2024 Investor Community Meeting. And it's good to be back in person. It's been too long. I think it's 2019 that we were in this room. Also, those of you who are joining us online, thank you for doing that. Today, we will talk about our vision of the next era of growth for Mastercard. But let's go back just for a moment and think about the last 3 years since we met. A lot have changed. We have been dealing with geopolitical crises. We had to deal with the lingering effects of the pandemic and the rewiring of the global supply chain and everything else that led to evolving markets. And we are seeing a technology-driven, broad-based wave of innovation that's reshaping global economy, which I think is a very exciting ways. Now through all of that, Mastercard never wavered. We agreed goals amongst ourselves. We shared them with you 3 years ago, and we delivered on them. We shared the numbers earlier on, even delivered on them and some. Now Sachin is going to talk you through our scorecard, our performance at the end of this morning's session, but I have a few personal highlights that I just want to share with you. So over the last 3 years, we outperformed the S&P 500 by 18%. Over that same 3-year period, we returned $31 billion to our shareholders. $31 billion in cash, considering who we are, should have been probably something different than cash. That's a German joke for you. All right. Okay. I will not attempt any more jokes then. It's not working with you. We gained share across all of our products. And over a 10-year period, we tripled acceptance. Over the last 5 years, we doubled acceptance to 150 million acceptance points in over 220 countries, and those now include China. And with that edge, we are positioned to be the most prevalent way to pay on the planet, and nobody else can say that. Well, people can say it. But for us, it's true. Now we believe we deliver unmatched value. And this morning, I want to talk about how do we do that. We focus on the fundamentals of our running our business. And it starts with having the right strategy. It's about anchoring the strategy in economic trends, and it's about executing with excellence. So keep those 3 in mind. I'll tick them one by one and share with you how we're going about it. Having the right strategy, let's start with that. So you know what it is. We grow, diversify and build across 3 strategic priority areas that are mutually reinforcing: consumer payments, commercial payments and new payment flows and services. We've been very consistent about this strategy. And the fact that we have delivered on our numbers for the last 3 years shows it's working. It's a winning strategy, and it also allows us to consistently sharpen our competitive edge. We believe these 3 areas are the right areas because they offer opportunity for outsized growth and give us an opportunity to shape them through our product innovation. They also position us to navigate an ever-changing world. Those changes that I talked about, geopolitics, macroeconomics, et cetera, the fact that our business is fairly predictable is because these priorities are strong on one hand, but also give us room for flexibility to adjust along the way, which is exactly what we've done and needed to do over the last 3 years. Now let's look at each and every one of them. Consumer payments. At Mastercard, this is like the heart of the business. It's been the source of the success for the longest times, and all of us at Mastercard were seized by that. We got a ubiquitous network. I just talked about our acceptance. We have a brand that globally stands for trust and reliability and we have digital-first technology. You're going to hear more about that from Jorn later on. Digital-first technology that allows us to participate in the underlying opportunity of shifting cash to digital payments. It also allows us to deliver more secure and more frictionless experiences, which is what consumers are expecting today. Now I'm going to come back to that secular opportunity point. There are a few doubters here. There's speculation. How long is the runway? And I know that's top of mind, and we're here together to talk about the things that are top of mind for you, so I'm going to come back to that. Let's talk about commercial payments. Consumer is a huge opportunity. Commercial is another big opportunity. We believe this space is at an inflection point. The people who touch commercial payments, they have an expectation that commercial payments should be as simple as consumer payments in their everyday life, but they are not. What we're seeing is more and more companies are digitizing more and more of their systems. Now we're pushing that expectation forward. We're pushing that trend line. And we're doing it very specifically in 3 areas. Commercial point of sale, we've been doing this for a long time. Now, invoice payments and disbursements and remittances. I'm looking at Raj here. Now with this change or increased digitization in companies, this space is poised for growth. And then there is services, an unmatched differentiator for our payment solutions in consumer and commercial. There's our services portfolio. Our unique domain expertise, our unique data assets and our wide range of distribution channels positions us not only to differentiate our payment solutions, but also to help our customers operate their business more effectively and efficiently. And we're doing this not just -- we're doing it not across the board. We really focus on common areas across sectors like customer engagement, like sharpening market insights, like securing their digital engagements and their digital ecosystem, like leveraging innovative technologies like open banking. It would have not gone unnoticed that these 4 areas are very much part of our services portfolio, carefully curated to match those common themes across our customers and help us differentiate our payment solution. Now that's the strategy. But it really -- the real power of the strategy comes through, take you back to the infinite loop. When it all comes together, then it reinforces each other. You hear us talk about this regularly under the headline of the growth algorithm. So here we go. Our payments network helps us scale our services. Our services help us differentiate our payment solutions. That drives more payment flows for us to be participating in, which throws off more data to apply our services to and build new services, a powerful cycle. No end, no beginning, the infinite loop. That's the power of our strategy. This is all underpinned by our people, of course. You know, in every earnings call, I mention our people at the end, but it's also our technology. We have Ed right here, our CIO. The last 4 quarters, we did 150 billion payment transactions in 220 countries. That's the power of our technology. There's our franchise and there's, of course, our brand. Now this strategy is not new. It's winning. It's delivering for us. It shows in the numbers. You saw our projections. We firmly believe we need to double down on it. And that's exactly what we're going to do over the next couple of years, a winning strategy, doubling down. First takeaway on the 3 fundamentals I wanted to talk to you about. We have the right strategy. Second one -- because the right strategy is good. If you have the right strategy that is anchored in global economic trends, that is even better. And what is even better than that is turning those trends into tailwinds for our business. Our business model is positioned to capture the natural growth of the economies to start with. That's the base of everything. And we do that by driving acceptance, by giving people an opportunity to interact with our network and use our products. But then we have expanded from there on. If you think about the digitization of the world, it's not just about moving cash to digital. It's about more data. It's about more data analytics. It's about cybersecurity. It's a whole host of trends covering a lot of other industries. This is our services portfolio. So we have an underlying economic trend and we have broader structural changes of the economy that we're anchoring on and we are participating from and benefiting from. Now then there's the secular growth opportunity. I promise you, I will come back to it. I see the questions. Those of you who send -- put notes out. How long is the runway? Transactions, PCE growth, U.S. consumer and so forth. Now you will appreciate that we have a preferred seat to see how long that runway actually is. And I'm not seeing a short runway from where I sit. What I'm seeing is when we drive into these fast-growing economies, massive amounts of cash. You heard us talk about Africa, Asia and Latin America, 90% cash in Africa. You go into developed economies, still significant amounts of cash. Germany, Italy, Japan, 30%, 40% of cash out there. That's a tremendous opportunity. And then across both types of economies, you see under-penetrated verticals like rent, health care and so forth, where there's still significant opportunity for us to go after in terms of digitizing that. And then there's a whole world post-COVID of new business models that turn one purchase into multiple payment transactions, another opportunity for our -- the secular opportunity that we can go after. Let's put some numbers to that. It took the industry multiple decades to digitize $23 trillion. And what is out there is $11 trillion. That is not a short runway. $11 trillion translates to, probably not exact science, approximately 1.5 trillion transactions. That's a tremendous opportunity for a company like ours, with the strategy and the solutions that we have to go after. And that's just consumer. I haven't even started to talk about commercial. Long runway from my perspective. Now back to the powerful trends. Not every trend that is out there is, at first glance, a positive trend. You ask us in many investor conversations, what do you worry about? And we are very freely talking about what we worry about. We worry a lot. I'm looking at some of my colleagues here. We are worriers, also warriors, but also worriers. And take government. Government invariably comes up in our conversations. So we talk about government and what I would like to say to you is the fact that government has more interest in payments in Mastercard is not a surprise. It's a function of our strategy. We want to be relevant across all payment solutions. We have been saying this for 10 years, and we are now 220 countries around the globe. People are coming to us and saying, "Hey, we need to understand how dependent we are on you." So there's more scrutiny. There's more regulation and so forth. And then we might be getting designated as systemically important. I tell you what, that's a badge of honor. That is a function of our strategy. We want to be in those flows for exactly the virtuous cycle to work. Now what is different than 10 years ago, we have learned to navigate that. We have learned to adjust our technology to make it more flexible so we can deliver against those expectations. Government. One example of we look at risks, we look at worries, and we look for the opportunity within that. I'll give you another one, competition. So I've got the whole team here. We constantly are paranoid about competitors. Yes, there's nothing new here to tell you. That's always been the case. The one thing I do want to tell you though is on the competition point, what's really working well for us is the muscle that we've built in understanding who's a competitor but who can also be a partner. Because that value chain is now so long and that ecosystem is so complex, ISVs, PSPs, you name it, we have really developed the muscle and models to interact for people to say, "I'm going to compete head on with you on this. Let's partner on cybersecurity." Just to give you an example, very important. And then, of course, there's macroeconomics. Like you see -- all seem to think we are the macroeconomic oracle of the world. That is -- that feels good, but we're actually not. We do have the Mastercard Economics Institute, and we look a little bit further beyond our business. But fundamentally, if you look back over the last 3 years, we've seen pretty resilient consumer spending. And we also have seen a pretty resilient Mastercard because, overall, we have a diversified, highly diversified business from a product perspective as well as from a geographic perspective. So macroeconomics, yes, people will always spend in up and down cycles, make different decisions. At the same time, we have a business in payments. We have a business in services. All of this adds up to a highly resilient business that we keep investing in. So yes, we are focused and we monitor macroeconomics, but it's not a deciding factor over-proportionally to our business. All right. That's the trends piece. So let me just recap. Right strategy. We're powered and -- we're linked and anchored on powerful trends that are out there that we turn into tailwinds for our business through our actions. All of this is great. But it's only great if we execute well against that. So execution with excellence is important. That starts with having the right assets, and I talked about our payment solutions and our services. And then it really comes down to the point of putting the winning package in front of the customer. Now many companies could say that. But what's true is the one size fits all is not the answer. It's going to be a specific problem, there's a specific challenge, a specific opportunity. And imagine how that looks across 220 countries and how that looks across all the sectors that we cover, from retail banking to merchants, et cetera. So we have invested not only in driving global scale, for example, through our acceptance, but we've also invested in our local presence and expertise and our domain expertise in airlines and various other sectors that we deal with. So as the most globally diversified payments company that is -- that's out there, that's a really big differentiator for us, and it's an important part of how we execute and where we tune the engine. And if you think about all the series of wins that we have talked about in the last quarters in the U.K., in Europe, here in the U.S., it's a function of leveraging that local expertise and that global scalability. First point I want to make on execution. The second point I want to make is when I started in 2010, out in the Middle East, I felt like I was in a position of being a vendor coming to our customer. And it was all about cost. Where we are today, when I think about some of our largest customers, and you'll hear from them in customer testimonials a little later, what I hear from them is when we engage with them, we talk -- let's say, it's a bank. We talk to the cards head, obviously. We've always done that. But we're also talking to the retail bank head. We're talking to the CISO. We're talking to the chief marketing officer. We're talking to the strategy head. We're talking to the treasurer, the CFO, to the CEO, increasingly so in the boardroom. The number of boardroom conversations that we've had, why don't you come on in and tell us what's next in cybersecurity? It matters to every company. They don't even want to talk to us about payments. Well, hopefully, they do subsequently. But those are the kind of dialogues that we have. So turning Mastercard into a strategic partner, we've been on that journey for a number of years. But it's really coming together as we broaden the scope of our offering into something that truly powers digital commerce as a whole, and that takes us into a very different conversation. I was talking to a very large retailer not too long ago. Linda and I were visiting that retailer. And the conversation, he said, "Well, you've got to talk to us about the future of checkout, checkout in the store. How do you avoid queues?" I did not expect a conversation like that. But the dialogue around Mastercard and with Mastercard is changing, and then it's a really important differentiator. So right strategy, winning strategy, powerful tailwinds in which we are anchored, execution, we've demonstrated that. We will continue to do that. All of this comes together in creating a virtuous circle for Mastercard. And I think that's priceless. I got to get the word priceless into it at the very end of it. So that's what I want to leave with you. Look for this as you hear Jorn talk about consumer payments. Look for secular opportunity, look for acceptance, look for differentiation in services, unlocking new verticals. That's the powerful cycle for you. I'm incredibly excited about what's ahead of us, and you'll hear from my possibly even more excited colleagues in a moment. Thank you very much. [Presentation]

Good morning. Nothing like a loud beat and a thriving business to get the day started. So I'm here to talk about consumer payments. And consumer payments, combined with our related services, has been an incredible growth driver for the company. And my simple message today is we firmly believe this will continue over the next number of years. Well, let me expand a little bit on that. And so I'll start with unpacking a little bit where the consumer flows are going to come from. We estimate our serviceable addressable markets to be $54 trillion. These are the flows that we believe we can go after with our existing capability or those we're about to launch. Over the past 60 years, as Michael said, card companies have already digitized USD 23 trillion. And within that category, we continue to compete, we continue to successfully gain share against both domestic and international networks, as Ling Hai and Linda will talk a bit more about later on. But as Michael said, $11 trillion is still not digitized despite the incredible success of the last 60 years. And that is about half-half in developed markets and in emerging markets, developed markets like indeed, Germany, Italy, Japan, Spain, lots there to take. Even in the U.S., there's over USD 1 trillion of cash, which absolutely we can go after. Now since last year, we obtained the license to operate domestically in China. We have launched in May our domestic switch in China. And so China is now entirely part of our SAM. You haven't seen that 3 years ago. That's now part of the SAM and Ling Hai will talk about how we're getting into that and how we're starting to harness that opportunity. And lastly, the shift from slow ACH to Fast ACH. And changing consumer expectations gives us a real opportunity to go after the $10 trillion of account-to-account and bill pay. On the right-hand side of the page, you see transaction numbers. And that matters because as a network and a switch, we earn revenue both on the value and on the number of transactions. And as you can see, the cash displacement here is 1.5 trillion, which is 3x what over the last 60 years we collectively have digitized. And with solutions like contactless, Tap on Phone, we absolutely can go after that. So this is kind of our addressable opportunity. Now let's kind of dive into some of the details here. I can't talk about everything in consumer payments, but I'll focus on how we capture the secular shift, how we win the hearts and the minds of our consumers. And I'll provide some pointers on how we invest in the future and extend the reach and depth of the network. Secular shift, obviously, starts with cash displacement. And the first call to action is acceptance. You've seen in the video that kind of curve, the tipping point on the curve, that happened a couple of years ago. This is as much about new technology, contactless. Now 70% of all our in-store transactions are contactless. But Tap on Phone, QRs, SoftPOS, SmartPOS, all that lowers barrier to entry for merchants and has triggered that increase. This is just as much about a new breed of fintechs that we have enlisted in the ecosystems, players like PSPs, gateways, ISVs, payment facilitators that are often very specialized either geographically or by vertical or by sector, and that help us get into that next generation of merchants. Now we are investing in this space in a very focused way. For example, in Mexico, Colombia, sub-Saharan Africa, the acceptance per capita is lower than average, and so we look at terminalization. In certain cities in ASEAN, we're seeing ATM over POS usage is too high. And so we're looking at going after that, specifically in travel hubs. In Germany and Japan, it's about consumer education. And so we're really focusing and it's bearing fruit. That's not just about cash displacement though. We've done a lot of work with opening up closed-loop networks. And many of you probably came here by tube or subway you call that here, tapping away as you come to this. We have opened up hundreds of transit systems over the last couple of years. Just this year, we've opened up Beijing, we opened up Boston, we opened up Brasilia, and that's just cities with a B. It's lots and lots coming online. And it's not just the tube or the subway or the metros. We are on the Medellin cable car. We are on the Sydney harbor ferries. The whole train system in the Netherlands has been opened up. And every time you open up a transit system, we see a halo effect. People tap to get into the tube and they tap to get a coffee, a magazine, a taxi. That halo can be 20% uplift in spend whenever we do that. So big focus here and great outcomes. We are competing with domestic markets. They often have some trouble keeping up with the technology innovation, and that's why we've increased our switching share. And in emerging markets, you see a myriad of domestic closed-loop wallets that are servicing consumers that are not always well served by the financial institutions. We've -- we're partnering with them both on the acceptance side, what we've done, for example, with LankaPay in Sri Lanka or Alipay in China, whereby a consumer can load the card into the wallets and suddenly pay at the tens of millions of acceptance points that they have. But we're also partnering on the issuing side to give more utility to the consumers of that wallet by giving them a Mastercard credential and suddenly opening worldwide acceptance. We think it's a great way for us to get to consumers that we otherwise have a hard time getting to with our traditional distribution partners and, therefore, leaning into that secular shift and going after the cash. And then obviously, we cannot talk about the secular shift without talking about digital economy. Digital business models show very high growth. Digital content, for example, which is in-app purchases or gaming, super high growth and super high -- about half of it is cross-border. So high growth, high cross-border, and it's often a multiplier effect of transactions or spend. If a subscription economy -- the subscription economy displaces a single purchase with suddenly 12 purchases. And as I mentioned, transactions matter to us. Or a gig economy splices a restaurant transactions into a transaction to the restaurant app or the food delivery app, a transaction to the restaurant, and a transaction to the driver. So -- and it's not a coincidence that these digital business models drop on our rails. This is the result of years of deliberate product development and deep engagement with the industry. And we're already preparing the next type of business models that are coming, so that we are able to catch this on our rails and that we're empowering those business models, we're empowering those merchants to be successful. So feeling pretty good about the secular shift overall, but let's shift gears a little bit and talk about that $10 trillion account-to-account and bill pay. You may be forgiven to think that bill pay is a tough nut for somebody like Mastercard to crack, but we think we can. We believe we need to do 3 things to crack bill pay. First, we need to make sure that we have the right economics. Throughout the world, we are adjusting our economics so that we are competitive with whatever alternative there is out there for the billers. Second, we need to make sure that the biller value proposition is right. And they are struggling with paper-based processes with collections with reconciliation. And we believe our payment guarantee, combined with tokenization, combined with authorization optimization, is solving these deep pain points of collections and of reconciliation. And then finally, we need to get the consumer on board, and we're doing some very nifty things there. For example, with Fitbit -- sorry, with FitBank and WhatsApp in the LAC, we are unleashing AI to bill payments. What is happening here is that a consumer through the WhatsApp app can make a picture of the bill. The AI assistant will, through image recognition, translate this into a payment instruction that the consumer can then pay with their Secure Card On File tied to their profile in a very seamless and intuitive way. Now this makes bill payments almost fun, at least a lot better than having to deal with papers and websites and e-mail addresses and passwords and what have you. FitBank is collected with 12 -- sorry, 12,000 billers in Latin America. We're launching this in December in Brazil and moving that to the rest of LAC after that. So I hope this gives you a sense that this is a space that we can go after, that we want to go after, and that we have credibility for. Now moving on account-to-account and APMs. Unfortunately, my notes have disappeared but it's okay. So account-to-account and APMs is a space that we're looking at, the space that's shaping that we need to kind of find our way through. The first thing I would like to say is that we remain very, very confident on the power of the card network to address the consumer and merchant needs. It is unparalleled reach. It is incredible functionality, and it has consumer protection. And we continue to invest and double down on that to make sure that, that is the best solution for consumers to pay and merchants to be paid. At the same time, we believe that this presents opportunities for us to get into the flow. For example, we are partnering with APMs in multiple geographies to make sure that we bring their solution to more consumers and make it more useful. We do that, for example, with Vipps and MobilePay in the Nordics, whereby their consumers are given a Mastercard card credential for universal acceptance. Don't forget that all of these APMs are domestic only, are debit only, and that leaves the consumer hanging as soon as they want to move to other places. Secondly, we're also investing in infrastructure. We are powering today the RTP systems of 12 countries, running 45 billion transactions on our network. Now this allows us in these countries to engage with governments, to learn what the governments' motivations and intentions are, to service those governments, but also to learn how this business evolves. One of these learnings, for example, is that as ACH -- Fast ACH grows, so does fast fraud. And we're seeing a very rapidly rising authorized push payment fraud throughout the world on the back of social engineering and scammers. And that becomes a monumental challenge for account-to-account as that scales in these markets. Then, hence, an opportunity for our services. We have already deployed Scam Protect. We continue to invest in that and to be able to deploy this elsewhere. So while the space is shaping, we are putting our chips in all of these 3 areas in order to position ourselves to capture both carded and non-carded flows in that space. Now I talked a lot about the secular shifts, but you cannot talk about consumer payments without talking about the consumer. We're now -- everybody here and every consumer we have is now a digital consumer. And they expect their financial lives to be literally at their fingertips. This is why, from a functionality perspective, we have co-created with some of the world's most sophisticated digital banks, like a Nubank, like a Monzo, like a KakaoBank, our digital-first product suite. What this does is it allows the consumer to engage with the banks throughout the life cycle of their payments journey from application to a card, all the way to digital receipts and disputes. And that leads to higher engagement, that leads to higher spend, and that leads to lower fraud for these consumers. We've now deployed this with 450 issuers in the world and counting. But winning the minds of the consumer is not enough. We need to win the hearts. And our consumers, especially our affluent consumers, who spend, by the way, twice as much as the average and who travel or spend cross-border 3x as much as the average, especially those affluent consumers, care about experiences, not just things. They care about making memories. And that is why, in Q1, we will be launching the Mastercard Collection. Dramatic pause. This is about offering consumers a priority access to the things that they really care about, like booking a table at a coveted restaurant for that special occasion or like taking your daughter to her favorite performer at a concert with Live Nation or like breezing through airport security ahead of anybody else because you're always in a hurry. We're very proud to be launching this in Q1 globally with some incredible initial parties like Live Nation, like Netflix, like TheFork, like Michelin Restaurants, and we'll be building upon that as we go forward. So we truly believe that with the functionality, with that value proposition, and with our worldwide acceptance that not everybody else has, this is a product that consumers will want to carry. Now all this only matters if you make the payment experience work exceptionally well all of the time. And that is why the boring stuff matters too. We are spending a lot of time making sure that we're securing the transaction with tokenization, with authentication. Tokenization now, for example, powers 30% of all our transactions. That means there's still ways to go. We're doing a lot in order to streamline the checkout with Click to Pay and Secure Card On File. We're converting Maestro to Mastercard. So consumers have more functionality, and we're seeing spend increases in a very significant way. And at the same time, we are continuing to optimize our business. We continue to make the network work harder. We're increasing, for example, our switching ratio. I think Michael mentioned that. But over the last 5 years, we have increased our switching ratio, which is the ratio -- which is the number of switched transactions over total Mastercard-branded transactions, by 12 percentage points, and we're now at about 70%. And we continue working on that because every switched transactions allows Craig to deliver services on that transaction. We're increasing approval rates because every declined transaction is a disappointed consumer and a frustrated merchant. And we are unleashing our services and our data intelligence in order to do that, and we're lifting spend and activation rates on our existing installed base. We don't need to win another deal to get more of that revenue. So that drives real revenue and makes our network work harder. But while we do this, we also need to look at ways to future-proof the network and branch into other areas. One such brand -- one such branch is tokenization, which we truly believe is another network lever. 10 years ago, we launched tokenization as a way to move and store credentials into billions of devices in a secure way. It took us 3 years to get to 1 billion transactions. Now we do 1 billion transactions every week. And the deep insight here is that as a trusted network, we are uniquely placed to connect thousands of market participants out there that don't know each other, and propose standards on how sensitive data is securely stored and shared with third parties, and implement this as a service. That is what we have done with credentials and tokenization. That is what we're now doing with passkeys on identity. That's now a proven technology, and we're deploying with a vengeance. But that's not where it ends. As digital assets become mainstream, we similarly provide a network to tokenize assets and exchange them between counterparties. And ultimately, we're aiming to tokenize data through consent tokens, allowing consumers to take control on who gets to see and who gets to benefit from their data. My point is tokenization is like -- is another network effect, and it's one that, like our core switching, can drive new business models. And we're at the very early innings of what we believe is a very long journey. Sorry, I got carried away. I still have a minute. Now we're also modernizing our card switch. We're living in a more and more complex world, and fortune favors the most adaptable. Now let's not forget, right, despite some of the regulatory challenges that we have to face, we have increased our switching ratio by 12 percentage points over the last 5 years. We have obtained the license in China. So there's trends and there's countertrends, and we feel pretty good about that countertrend. At the same time, we are very convinced we need a superior tech stack in order to face the challenges of the future, which is why we have launched this year in South Africa our modernized card switch, which is -- offers real-time clearing, which offers rapid settlement and immediate payout, but with -- very importantly, which is also deployable anywhere at full flexibility. To win, we need to be able to offer the best that's out there and bet on ourselves. Now we don't know what new business models will emerge in the future. But these are just some of the examples on how we get ready to enable these new businesses, stay ahead, extend the network and let these flows drop on rails. So with that, I would just leave with you that we are laser-focused on capturing and extending the secular shift and unlock the volume and transaction growth for us. We will win the hearts and the minds of the consumer with rich functionality, ubiquitous acceptance and exciting value propositions. And we are leaning into market transformation and are poised for growth in these ever more complex markets. And so with that, I will hand over to Raj to talk about commercial and new payment flows. Thank you. [Presentation]

Good morning. I'm delighted to be here with you this morning and to talk about commercial and new payment flows. Commercial and new payment flows represent a significant opportunity for Mastercard. This includes commercial as well as disbursements and remittances. So let's start with commercial. These are payments made by a business to another business. These businesses can be small or medium enterprises, SMEs for short, or they can be large corporations. And there are 2 types of payments here. The first is point-of-sale purchases. This is when you tap your card, your T&E card, your purchasing card, your fleet card, your SME card. This is when you tap your commercial card at the point of sale. And the point of sale can be physical or it can be digital. And I think, to consumer, the benefits come from global acceptance, ease of use, trust, security. But in addition to that, there are other features. For example, expense management. And then we have invoice payments. These are payments between a buyer and a supplier. So buyer places an order, the supplier delivers goods or services, delivers an invoice, and then the buyer pays the invoice. So these are known counterparties. They're often contractually bound, and there's an opportunity here to track, to reconcile and to optimize. The disbursements and remittances, these are money transfers from a business, a government or a person to another person. The sender and the receiver can be in the same country or they can be in different countries. The transfer can be in one currency or it can cut across currencies. We do this with Mastercard Move, which includes Mastercard Send, that travels on our card rails. And then today, we have rails that go beyond cards. This comes from our acquisition of Transfast and HomeSend. The opportunity here is to track the money in its journey, know exactly where it is, provide certainty on when it might arrive at its destination, and then reduce the cost of the journey entirely. Now across this area, there are 5 points to highlight. One, the total market is growing, which is great. It's always good to be in a growing market. Two, the serviceable market is now $100 trillion. And the serviceable market is growing faster than the total market. Why is that? Because we're creatively deploying our products and services, things like virtual cards, and we're also building and buying new capabilities, so we can go after more of the total market. Three, our market share is growing. From what we see externally, it's growing faster than our competitors, and it's growing faster than the market. Four, our market share, while it's growing fast, it's still only about 2% of the serviceable market. So we're nowhere near saturation. There's lots of runway ahead. And then finally, five, the economics are attractive. They're attractive for Mastercard, and they're attractive for our customers. This is because, for example, commercial has a higher mix of cross-border or there's tons of opportunities to add services across all of these flows. So very excited about this. So let's start with commercial. This is an $80 trillion serviceable market, and it follows the same growth algorithm that you know so well: spend growth, secular shift, share growth and services. Now here, there's an enormous secular shift. There's $77 trillion. That is 95% of the opportunity. There's $3 trillion in cards, and then we have a growing suite of services for security, for controls, for loyalty, for insights to drive competitive differentiation and to increase yields. Now let's look at each of those 2 types of transactions I mentioned earlier. Let's start with point-of-sale purchases. This is a $17 trillion market. There's $16 trillion in cash and check to unlock, and cards are perfectly suited for this. We know how to drive this unlock. We are already successfully driving it today. Invoice payments. This is a $63 trillion market. There's about $2 trillion that's carded. There's $61 trillion more to go. Our ability to unlock these payments is growing for 3 reasons. First, there's a trend in corporates. There's a generational shift in the employees. They want consumer-like ease. They want digital workflows. The corporates themselves want efficiencies. They want streamlined processes. And now it's increasingly possible with advances in technology. Automation via enterprise platforms is moving very fast. But until recently, it stopped short of payments. That's the opportunity for Mastercard. The second reason related to this is that at Mastercard, we have a VCN engine, a virtual card engine, that is industry-leading and competitively differentiated. We continue to enhance it, adding features and functionality. We're making it easier to access. We want the access to be ubiquitous. So for example, we're embedding it in the enterprise platforms. And the third reason is that we have an increasingly deeper knowledge of these fragmented commercial ecosystems. We're prioritizing attractive slices. We're going after verticals that are ready to change. We're addressing industry-specific idiosyncrasies. We're solving for all stakeholders, meeting the consumer, the user where they are. We're providing flexible interchange so that the buyer, sellers, the 2 sides of the market, can find a price that is right for a particular transaction. Now we have a strong track record for growth here. Mastercard's share of the carded market is about 1/3 today, but we're growing very fast. We have added over 4 percentage points of market share since 2019 in this market. And we're growing it simply by growing our slice of the pie, by winning versus competitors, and then growing the overall pie to our advantage. Now how are we targeting point-of-sale payments? Exactly as you've seen us do all along. We continue to innovate and scale our successes in T&E, in fleet, in purchasing, in SME, across debit, credit and prepaid, across businesses of all sizes. Our success is driven by 3 factors. First, we're delivering differentiated value propositions. Take SME, for example. We now have cards for entrepreneurs. We have charge cards, which is a pathway to credit for an SME. We've developed mobile VCNs for all businesses of all sizes. This is to provision a virtual card into an employee's digital wallet. There's a demo upstairs I encourage you to take a look at. So you can use it, for example, to mop up petty cash. We're using services to differentiate these commercial payments. Let me use SME loyalty as an example. These are merchant discounts that are available to an SME that are automatically applied via the network. In Brazil, we have Surpreenda Empresas. Here, users have 120% lift in spend. In the U.S., in the Easy Savings program, users use the card 4.5x more often, and they spend almost 3x as much money. We've developed business payment controls to set limits on spend, geography, merchants, time windows. So take an SME owner. Her credit card is tied to her personal credit. Her debit card is tied to her bank account. So it's risky for her to give that card in any form to her employees. But now she can use mobile VCNs to put the card into the employees' digital wallet and then use business payment controls to set limits tied to a specific purpose. Expense reimbursements. This is a very costly process. At one company, we discovered that a reimbursement transaction costs $50. And then if there's a rejection and you resubmit your expense report, that's another $6. So one rejection, it's $56. Two, it goes up to $62. So knowing this, we integrated into expense management platforms. And today, we cover 2/3 of the global market. SMEs also don't have the resources of a large company. So we provide AI virtual assistance, provide platforms to digitize their operations, and there's a demo of this upstairs. We're also expanding distribution. We're growing our traditional sales forces that partner so well with our banks. We're adding new geographies. So take SME as an example. In China alone, we've already launched 8 programs for SMEs. All these geographies that we enter represent a secular shift. We've also built new sales forces. We have a sales force now that targets corporate buyers, like CFOs, treasurers, chief procurement officers. We're also targeting innovative fintechs. Now globally, there are many SMEs that are outside the financial ecosystem. We're using digital and virtual cards to replace cash. This drives financial inclusion and it drives a secular shift. And of course, we're building acceptance. All of our point-of-sale efforts span both consumer and commercial. And take SME acceptance. We're driving this very hard. I'll give you a couple of examples. We're helping an SME make every device an acceptance device. We're bundling acceptance and issuance for smaller SMEs, so they can start accepting cards all the way upfront. And with all of this, we are winning. We are winning flips. Wells Fargo is an example. We're winning renewals with expansions. For example, with FAB, we're going to be entering the Kingdom of Saudi Arabia. We're winning with corporates. 7-Eleven now uses our T&E purchasing and virtual cards. You'll hear a lot about this from Linda and Ling Hai in a little bit. So invoice payments. We're systematically unlocking B2B transactions, and it starts with ecosystem enablement. We're looking at account payables files, analyzing them, identify suppliers that accept cards, so that everyone can use a card there, identify suppliers who don't accept cards and work with them on acceptance. Straight-through processing. We're using virtual cards to eliminate manual entries, card controls to capture preferences, limits, categories, and then automatically manage the terms of acceptance. Flexible interchange, so that buyers and suppliers can meet at the right price for a transaction. Today, we have this globally for travel. And we're introducing a new program, it's a broader program that will be available in Q2 of 2025 in 79 countries. We're making the network fit for purpose. So for example, we're refining our franchise rules for large transactions, for data enhancements. We're looking at our chargeback and dispute rules to reflect counterparty terms, to reflect industry norms. We're using real-time intelligence to flag acceptance drop-offs so that we can quickly address it. We're also working with buyers and suppliers on either side of this ecosystem, educating them on the value of cards and the value of virtual cards, driving efficiency and accuracy in accounts payable and in accounts receivable, both the process as well as reconciliation. With buyers, we focus on getting the card and the virtual card in the hands of all users for all use cases. We're also using card to account, where the buyer wants to pay by card but the supplier wants to accept a bank deposit. With suppliers, we're also working with them in many ways. Let me give you an example. We have a program for acquirers to help them innovate and scale B2B acceptance. We have about 30 global acquirers participating in this program today. Now Mastercard is a corporate, which is great because it helps us monitor progress. Today, there are 2x more suppliers accepting cards versus in 2019 because there's real economic value in it. It lowers the overall costs, it reduces errors, and it gives you a lot more financial flexibility. Now we're extending our success in travel. We're looking at industry verticals. We've successfully unlocked travel. We use cards, virtual cards, flexible economics, enhanced data and various features specific to travel. And today, we have a significant share of the card to travel market. Now we focused on unlocking other attractive industry verticals, verticals that have high spend, ideally cross-border, verticals that have a lot of cash and check to digitize and verticals that have points of aggregation to drive scale. Let me give you a couple of examples. Take trade and logistics. I'll give you the example of Dubai Ports World. We use SME cards. We give cards to SMEs so that they can pay for their port services. This converts cash. It also provides access to working capital. Another example in health care is the Medical Tourism Association. This helps the consumer pay for medical services that they access abroad. So you have one transaction, but you have multiple payments. You have a P2M payment that the consumer makes and then a multiple set of cross-border B2B payments to the hospitals, the doctors and the clinics. In all these verticals, we're driving a secular shift. We're creating value from lower-cost digital workflows, better access to and utilization of working capital, error-free data-driven reconciliation. And we're driving SME financial inclusion, which displaces cash. Embedded payments. We're also embedding payments into widely used platforms. Invoice payments link procure to pay at a buyer to order to cash at a supplier. The buyers source suppliers, place orders, receive goods, then they have to match the purchase order to the bill of goods, to the suppliers invoice and then they trigger the payment. The suppliers sell to the buyers, they receive orders, then they have to assess the buyer's credit because they're going to be exposed. They ship the goods, they invoice the buyer and eventually, they get paid. And at that point, they need to reconcile that payment to the original sale. These workflows cut across multiple departments at the buyer and at the supplier. And historically, they've been very complex and often very manual. So we're working with ERPs and procurement platforms. Efforts are already in flight to digitize and streamline these workflows. The opportunity for us is to embed payments. So we use our competitively differentiated industry-leading VCN engine so buyers can generate a virtual card within the platform. The virtual card is embedded in all the approval workflows. It is safer. For example, you can assign limits to the virtual card. It's more flexible. So a buyer, for example, can prefund a supplier. It releases working capital for buyers and suppliers. And of course, you get easier reconciliation because you have richer data. We're already live with the leaders, and we're seeing green shoots. There's substantial interest from corporates and issuers alike, and there's a potential to unlock enormous volumes for cards. We're very excited about the secular shift in the many years ahead. Now let's talk about disbursements and remittances. This is the market Mastercard Move targets, which is about $20 trillion in size. We're growing fast, but we only have a 2% share. There are many, many use cases to go after with attractive accretive yields for Mastercard. So in this business, we move money from a sender who can be a business or a government or a consumer to a receiving consumer. And the opportunity is exciting in 2 particular ways. The first is the bottom row. This is 3/4 of the flows. These are flows that originate from a business or a government. So they're easier to target. So examples here are when you pay wages to a host or a driver or in gaming, when you pay in for a game or you take your winnings out. The other thing that's exciting is the right column. It's cross-border. It's more profitable. So this is examples here are support that you might send a parent or a child living in another country or wages for coders or content developers that are working from anywhere. We have remarkable scale in this business that continues to grow. We reach about 95 of banked consumers globally in real time or near real time. We have 10 billion endpoints. These are wallets, accounts, cards and also cash out locations for underbanked consumers. And we're driving our capabilities forward. We're differentiating our propositions. We're enhancing digital journeys. There's a great contactless transfer demo upstairs you should look at. We're simplifying cross-border experiences. There's an alias-based remittance demo upstairs you should look at. We're adding security. We're adding insights. We're also creating use case-specific features. So take payroll as an example. We have tools to calculate wages, view activities, access tax statements. And we're expanding our network on both sides. On the origination side, we're embedding Mastercard Move into platforms. We're integrating into core banking to reach smaller banks and credit unions. On the receiving side, we're expanding to more countries, more geographies, more wallets, more cash pick up locations. And on both sides, we're enabling our banks to send and to receive, and we're also becoming a direct participant in domestic and regional payment schemes. To grow this business, we're innovating to find new use cases, and we're quickly scaling the use cases that work. So in summary, we're very focused on capturing this $100 trillion market. We're focused on growing the overall market by driving secular shift, and we're growing our market share by differentiating and by competing well. To do this, we will continue to drive point-of-sale purchases, innovate further in invoice payments, scale Mastercard Move for disbursements and remittances. I'm personally very excited about this opportunity for all of us in commercial and new payment flows. Now next, you'll hear from Craig on services.

Welcome to the services segment of our morning. Let's talk services. I'm going to spend a little bit of time talking about where we are and importantly, where we're going with our services business. I'm going to start just with level setting a little bit about what is in our value-added services and solutions portfolio. There's a wide range of capabilities, as you can see represented here, comprised of our data technology platforms that are serving our business in payments and beyond. As you'll recall, value-added services and solutions for us includes -- the revenues include other solutions, the things that are listed on the right-hand side of this page. We've touched on a few of those things already. The things -- the 6 panels in the center are our value-added services, all of which are important to our business, all of which we're investing in, all of which are growing, many of which play a critical role in supporting our payments propositions with gateway processing, digital authentication, critical to delivering the consumer experience that we seek to deliver. I'm going to focus today primarily on the top 3: security solutions, consumer acquisition and engagement and business and market insights for a couple of reasons. One, they represent the majority of our services revenue; and two, they represent significant opportunities for ongoing growth. You'll note that this is a slightly different categorization than we've shared with you in the past. And that's really driven by anchoring these services around the buyer groups that we're targeting and the addressable markets that they represent. And I'll spend a few minutes on that as we go through the conversation. I also want to highlight, while it's not listed here as a product area per se, that all of these areas are supported by a global team of more than 3,000 consultants, providing wraparound expertise from strategy to execution to help our partners maximize the value of these services and their overall payments businesses. We are among the largest payments-focused consulting organizations in the world. We've conducted more than 8,000 client engagements over the course of the last 12 months. So with that, let me turn to the strategy that we're focusing on to deliver ongoing growth. Very simply, we're focused on 3 strategic priorities. These align very tightly with our corporate strategy and our corporate growth algorithm, differentiating our consumer payments activities that Jorn just discussed, so we can continue to benefit from the secular shift and win share in the market, accelerating growth in commercial and new payment flows, ensuring that our services propositions are fit for purpose to help support the payments products that Raj just discussed and then importantly, diversifying our revenue streams through adjacencies that we're targeting where we think we have a clear right to win. We're leveraging 3 areas for competitive differentiation, investing in proprietary data from both our payments business and beyond and then leveraging synergies with both our payments products and our services portfolio, each of which we think are unsurpassed in their breadth. And then executing against 3 growth drivers: coupling services with payments to benefit from ongoing growth in payments volume, expanding our addressable markets by increasing the range of capabilities that we have and deepening penetration of our market opportunity by scaling distribution across rails, platforms, channels, including B2B partnerships. I'm going to touch on each of these in turn, starting with our differentiating payments. We're often asked, actually often asked by many of you in this room, what is behind your wins? What's driving your wins in the marketplace? Linda and Ling Hai are going to share some detail on that a little bit later this morning. But part of that answer lies in our value-added services capabilities, and in particular, the way in which we are combining those services in different configurations to meet the needs and priorities of our partners. That's true across each of the product areas that you see listed here on the page, but it's also true within them. So for example, a debit proposition for Citizens Bank might highlight a few specific areas, open banking, innovation, marketing services, consulting services, whereas a debit proposition with Capitec will focus on other things, fraud tools, data analytics, innovation, also consulting services, based on the specific needs and priorities that they have, the strategic objectives that we are aligning with them to help them execute against. That's true across each of these product areas, a co-brand proposition for Expedia, different from a co-brand proposition for Carrefour. The same applies to our credit products, the small business and commercial products that Raj just talked about. Our partners value this. They tell us they value it. They tell us they value it with their words and they tell us they value it with their actions by awarding us more business and engaging with these services to help drive growth in their portfolios. And this is really where a lot of that magic happens that Michael alluded to earlier this morning, where our teams are on the ground working with our customers, our partners to listen, to collaborate, to partner to bring the best solutions to bear to meet their needs. Our services are also enabling us to expand into adjacencies and with that, new revenue pools. And this is an important part of where the role services plays in our business. And it's not just any adjacency, but adjacencies that are closely connected to our core consumer payments capabilities. We place a premium on services that help differentiate payments to continue to build on that virtuous cycle and reinforce it as we win market share, increase volume and continue to drive the business. As our payments activities have expanded, so too have our services. And we've done that by extending them from our core customer types, issuers and acquirers who we've worked with for many years, to increasingly working with fintechs, merchants, governments, and then expanding the range of capabilities that we have available to meet a broad range of needs across disciplines within those customers, helping them make more informed decisions, targeting new buying centers to expand into new areas with those partners who have a need for those services and continue to build on that. So for example, moving from working with a bank's cards issuing team to working with their information security team to help reduce the risk of cybersecurity attacks, moving from working with a retailer's treasury team on payments to working with their merchandising team on things related to store layouts, on merchandise selections on promotions or with their digital channels team to help optimize and personalize landing pages in the online shopping journey, or moving from working with a fintech co-brand team to working with their fraud team to help reduce the risk of fraudulent log-ins to loyalty accounts. These are all things that help us expand the addressable market that we're able to work with, capture more of the wallet that these customers are already spending on similar services and with that, increase the value that Mastercard brings to them as a partner. Moving on to differentiation. Where and how we're differentiating our services business, that conversation has to start with data. The data element of this is incredibly exciting. We are, at our core, a data company. We've been moving data safely and securely around the world for decades to facilitate safe and secure payments. That data is absolutely at the heart of our services business and the volume and scope of data that we continue to aggregate as an organization is staggering. You saw on the video, 15 petabytes of data. That's just in card transaction data alone from the more than 150 billion transactions a year that we're processing. What I think is even more interesting than the volume of data is the breadth of data. So in addition to card transaction data, identity data, device data, real-time payments data, open banking data, gateway transaction data, the list goes on. And with that breadth, the investment that we've made in enabling us to maximize its use and maximize its value, investing in the infrastructure we need to cleanse, structure and use the data to train analytical models, something we've been doing for years and is really at the foundation of being able to extract value from that data and deliver that value back to our partners, to leverage insights across data sets, for example, to be able to combine device data and identity data to make an open banking transaction more secure, all while responsibly managing data usage, privacy, sovereignty considerations, the important things that are foundational to be a trusted service provider in a data-driven business. On top of that, we've been deploying AI at scale for more than a decade with machine learning, predictive AI, now generative AI and focusing our AI on 3 specific areas: making payments safer, for example, using AI to enhance fraud detection, making payments smarter to enable us to deliver insights to our partners at the right time to improve decision-making on their part and making commerce more personal, delivering the right offer to the right person at the right time in the right place. All of these things are examples of where AI is deeply ingrained in our business and will continue to be. The proliferation and the importance of AI really just reinforces the value and the criticality of the data itself as an asset because as we all know, in an AI-oriented future, AI can only be as good as the data that it's trained on. And so continuing to cultivate that rich asset is an absolutely critical part of our strategy. And then finally, insights are only valuable if they can be acted upon. And we've invested significantly in technology infrastructure to enable us to do that, enabling thousands, literally thousands of decisioning parameters to be incorporated into a transaction in real time in 100 milliseconds. That's less time than it takes to blink your eye and to do that with more than 140 billion transactions a year in real time as part of transaction approval. Making our insights accessible through APIs. We've had more than 15 billion API calls into our services in the month of October alone. These services are being used by our partners, incorporated into their business and their business processes and deploying these through SaaS platforms that we've acquired through the years to enable ongoing integration and engagement with our partners. So data is point of differentiation, number one. The second is around synergies, both with our payments products and across services. And I'll address this with an example. I think it's easiest to kind of walk through this. In this case, looking at consumer credit as an example. And you see here kind of a simplified version of an end-to-end activity chain in consumer credit of launching a product, targeting customers, soliciting customers, evaluating customers, onboarding customers and engaging customers. Everything that you would do end-to-end in acquiring new credit card accounts, something that every one of our issuing partners around the world does all the time. And with each one of those activities along that activity chain, you see underneath services that align very specifically to those steps in the activity chain that enable us to provide that end-to-end support with a very measurable, actionable outcome, in this case, benefiting from the fact that it's linked to a payments product that we and our partner have a mutual economic interest in that is also a measurable outcome to target. And we can support that end-to-end if that's what our partner desires or we can support that in specific components or portions of the overall activity chain, if that's where the need lies. But the combination of these things to be able to work with our partners in this way, we think, is quite unique, differentiated from other competitors, both in the payment space and single point solution providers. That's applicable across different payments products and flows, and it's delivered through in-house proprietary resources, data and technology. That's where we're focusing on and how we're differentiating. Let me turn to where we're investing to drive growth, starting with addressable revenue pools, and I'll emphasize these are revenue pools, not payments volumes. Our target addressable market in total for our services activities is nearly a $500 billion revenue pool, with $450 billion of that represented in the 3 key verticals that I highlighted at the start, security solutions, business and market insights and consumer acquisition and engagement. What's maybe more interesting than the total addressable market is the serviceable addressable market. The portion of that market for which we have products in market today or in late stages of development, that's at least $165 billion. With $11 billion in services revenue today, we're less than 7% penetrated in that serviceable opportunity, which leaves ample runway for growth. And we have a clear path in terms of how we will execute against that growth, benefiting from overall market growth driven by secular migration, digitization, B2B modernization, et cetera, focused investments to continue migrating the total addressable market into our serviceable and therefore, immediately addressable opportunity and continuing to deepen penetration of our serviceable market. I will touch on those as well just to highlight each. So with respect to overall market growth, each of those verticals that I highlighted is growing in its own right, which provides a tailwind for demand and usage. But one very important aspect of that market growth is the connection to payments. And with that, the services that we deliver by virtue of being linked to our network, again, reinforcing that virtuous cycle. There's a number of examples listed here on the left-hand side of the page, which you can see. In the aggregate, these network-linked services are roughly 60% of our total services revenue, and they grew at a 3-year compound annual growth rate of 17% since 2022. Just for clarity, a network-linked service in this case is the combination of a service that is delivered and embedded in the transaction, a fraud score as an example, as well as services that are correlated to payments network transactions, things like chargebacks, disputes, stand-in services that we provide that don't accompany every transaction, but are connected to transactions. A second key driver of growth is the migration of the overall addressable market into our serviceable market. This is something we've been doing in a targeted methodical way for years through both our product development efforts organically and through our M&A activities. And I'm going to walk through an example. I'm going to ask you to focus on the screens because there's some dramatic animation here to help emphasize the point. You've heard us talk many times about with respect to security solutions, how we've extended our role in the value chain to not just be providing value during the transaction, but doing it before and after. What you see here is that security solutions value chain, starting with the kinds of services we offered before 2016, not surprisingly, mostly connected to a transaction. That's where our roots are. That's where we grew up delivering value. Starting in 2017, we began to extend in both directions, adding cyber vulnerability assessment, behavioral biometrics, chargeback prevention and identity theft protection capabilities. In 2020, we expanded that further in the account opening space with financial data aggregation and identity verification. And then in the last couple of years, DDoS and web application protection, Passkey, most recently subscription management and threat intelligence. You can see how we're methodically building this out in areas that add value to payments transactions and create complementarity between the services capabilities themselves so that they're worth more to us than they would be on a stand-alone basis. With that, we've expanded our serviceable addressable market in security solutions alone by $30 billion since 2019. And this is the final dramatic animation. You'll recognize here a lot of the companies that we've acquired in that time frame and specifically where they fit in to this methodical approach in expanding our capabilities, which, again, we're doing not just through acquisitions but through organic product development as well, too, the ones that are not highlighted. And I'll mention the most recent 2, Minna in Digital Experience subscription management, we closed on 2 weeks ago and of course, Recorded Future in Threat Intelligence, which we intend to close on in Q1 of 2025. Finally, deepening penetration of our serviceable addressable market. We're doing that by targeting distribution at scale through 3 channels: One is leveraging our technology platforms, all of our platforms, our network rails, all of the rails that we operate, the platforms, the gateways within our 4 walls to enable us to touch more transactions and deliver more services per transaction. A data point around that, our processed transactions increased at a compound annual growth rate of 13% from 2021 to 2023. And the services that are triggered as part of a transaction process -- as part of transaction processing increased from an average of 3 to 5 in that same time period with many of our customers using significantly more. Second channel is direct selling to customers. We're doing that through a dedicated services sales force and our global account teams, working to increase the number of customers and the number of services per customer. We're selling across the full scope of customers that we can reach. As one example of our progress there, looking just at our licensed network customers, we've grown the number of customers by 10% and the services per customer by 13% since 2021. And then finally, leveraging one-to-many distribution partnerships with tech platforms, system integrators, processors, other networks, other partners with whom we can embed services as part of their value proposition to deliver at scale through their channels and to their customer base. Here, we're building off a relatively smaller base, but growing both in terms of the number of partnerships, which we're aiming to increase and the services revenues per partner, which we're also targeting to increase. One example of this that we shared recently on an earnings call is our partnership with Salesforce, where we've integrated our dispute resolution services into their financial services cloud to make that available to their customers. And so that's a quick tour through our services strategy. Our key takeaways, this remains a large, important growing revenue opportunity for us, underpinned by differentiated data products and distribution with a very focused approach to continuing to grow at scale, and with that, an area that we see as having significant runway for ongoing growth. I know many of you have questions about this area, and we'll have a breakout session later today and look forward to addressing them in more detail. At this point, though, we're going to go to a break. You deserve a break after the first 1.5 hours. And so it's about a 15-minute break. We're going to get a message on exactly what time to be back. Thank you. [Break]

Hello, everyone. You've heard about our robust product and services strategy. We're so pleased to be able to talk about how those strategies come to life with our customers in our markets around the world. The globality of our business and the diversification of our business is our superpower. 210 countries and territories, 150 million merchant locations. We have a significant percentage of our volumes generated outside of North America in the markets where cash is still the majority of payments. And in those markets, we have outstanding teams of people that allow us to think globally and act locally. And those teams have developed meaningful relationships with our customers, some of whom you saw in the opening video, who consistently reference Mastercard as their preferred partner to support them in their payments business as well as their overall growth agenda.

Yes, you're absolutely right. So our teams are executing across all markets in terms of our strategy and what's so funny? Okay.

I love the affirmation.

Yes, absolutely. We always affirm each other. And now we think about our growth opportunity really in 3 ways. So secular shift, market shares and services. So let me start with secular shift, which actually exists both in emerging but also mature markets. And across the globe, we are actually executing on the secular shift by expanding in digital, scaling commercial and driving financial inclusion. Next, our market share. You heard Michael talk about this. We have grown our market share across all products. Now you're going to hear Linda and me talk about how we compete for share increases in countries such as Brazil and China. I also would like to add, we win share via our people. Our people listen to the customers' needs and wants and pain points and then craft the right solutions to meet those needs. Our people really are the reason why we win the hearts and minds of our customers. Let me finally also touch on services very quickly. You heard Craig talk about services. Our success is indeed further strengthened by our services. We have many services, and Craig listed them all, so I'm not going to go into the details. But I just want to say that in the markets, what we see is services really diversify our revenue base, but more importantly, they create very strong differentiation for Mastercard. Now I know secular shift is a topic that's very high on your mind. So Linda, what do you think? Let's give them some examples in your world.

Sounds great. Well, if it's one thing that we hope you leave today with is the secular shift opportunity is huge. It's huge across the globe, $11 trillion in consumer cash and check, $80 trillion in B2B. And we wanted to provide you with a couple of country examples. Now within the country of Mexico, it's a Top 15 GDP market, 130 million consumers in the market, 1/3 of which are under the age of 19, so a very young and digitally savvy country. That being said, 80% of the transactions taking place in that market are still in cash. And so that secular runway for growth is just absolutely tremendous. And in the market of Mexico, we're very well positioned. A couple of years ago, we launched our switch in the market, which has allowed us to bring the power of the global network locally to banks and to fintechs in that market and connect them to services in that market. We're switching 22% of our transactions in the market today, and the growth is strong. So the runway there is very, very long. Now elsewhere in the market, we are also working with customers across all segments to capture that secular growth. With the largest government-owned bank, [ BN Star ], we have brought 30 million underserved consumers into the financial mainstream. With one of the largest banks, Banorte, we launched the country's first fully digital bank in Mexico. And with one of the largest merchants in the market, Walmart, we launched their co-brand debit product. So a lot going on in Mexico, a lot going on in the U.S The secular opportunity here is equally large, both in our core business as well as in emerging verticals like rent and insurance, utilities and health care, and then, of course, in B2B. So what are we doing in the U.S.? Well, we're partnered in the rent space with a company Yardi, who is helping to digitize rent payments and put them on cards. We are in the bill pay space, working with platforms like Adobe to help streamline bill payments and reconcile collections. And we are working in the VCM space. You heard Raj talk about the fact that we are the global leader in VCM. And thanks to partnerships like the one we have with WEX, that business is continuing to grow.

Let me now also give 2 examples in my world. First, South Africa. Now this is a very interesting country because South Africa is a country with this dichotomy of a formal but also informal economy. In the formal economy, they have this well-established payment ecosystem and card penetration is very high. But the country still has a very large informal economy. 1/3 of the population remains underbanked and relies heavily on cash. So the informal economy, especially the SMEs, provide our secular shift opportunity in that country. So what have we done? One, you heard about this already, we have deployed an on-soil switch recently with fast settlement. What's the significance of this? When you work with SMEs or smaller merchants, what is the major pain point for them? It is really working capital. So with this real-time settlement capability, smaller merchants can receive same-day settlement, therefore, tremendously reduce the need for cash flow and improve their cash flow positions. We have also nearly doubled acceptance in the last 2 years. Again, here, the focus is to work with fintech companies like Yoco to serve and expand the SME segment. We are also working with this fintech bank, but it's actually also the largest bank in South Africa, the Capitec. We're working with them on debit cards and QR codes. Again, the intent is to provide low-cost ways for SMEs to pay for goods and services. Let me also end with one more secular shift opportunity for South Africa. which is e-commerce, huge growth, plus 30%. And this is where our gateway is a very relevant solution in this space. Amazon uses our gateway and many PSP providers enable our gateway services in South Africa. Let me also come to Spain. Yes, secular shift exists in Europe as well. And Spain is a great example. Nearly 50% of all transactions are still done in cash. So for us to capture the secular shift, we are doing several things. We are entering new verticals such as EV charging, transit and vending. We're converting closed-loop retail cards into open loop with the biggest retailer in Spain called El Corte Ingles. There's something like 11 million cards that we have done. We're lowering the cost of acceptance with SMEs via Tap on Phone. And lastly, we're also partnering with Spain's post office, Correos, to digitize social disbursements and public aids for youth and their vulnerable families. Now I have given you examples -- we have given you examples on secular shift. Let me also continue with market share. With that, I think I have to start with China. I wish my colleagues hadn't stolen my thunder on China. But yes, we went live with our domestic license in May. Yes. I'm sorry, I got carried away. I don't want to make anybody jealous, and Michael did tell me not to get too excited about this. But it really is a very unique opportunity now for us to access this market, second largest economy. SAM is $10 trillion in consumer payments. And another thing I want to say is our domestic license not only benefits our domestic business, it's also beneficial to our cross-border business. For those of you who are in the payments business, you will notice domestic and cross-border are intrinsically linked onto one card. So that's very important to keep in mind. And what are we doing? We're doing a lot of work on the issuance side and the acceptance side. Since May, we have launched a significant number of new credit, debit and commercial programs with partners like ICBC, Agricultural Bank of China and China Merchants Bank. Also, we are very focused on driving millions, let me say this again, millions of new acceptance locations, positioning Mastercard to be the world's most accepted payment network. Some of you who go to China often may also think of China as a market with digital wallets and QR codes. But guess what? The country now is on a journey to transform itself to multiform factors, digital wallets and cards, QR code and NFC. And Mastercard is very much playing a very important role to support this journey. One example, I think, again, Jorn or somebody already used it, but I want to use it again, recently, the entire subway system in Beijing has opened up to tap and pay for foreign visitors. Very, very significant, we're going to see more coming. And the other thing I want to say is with this domestic relevance, it really just gives us the right to play with more digital players in China. We have already done many things with Alipay, WeChat Pay. For example, you heard about PayLocal with Alipay and WeChat Pay, where foreign players, foreign tourists can load their cards and leverage the QR acceptance points in China. We have launched the cross-border services with Alipay to enable inbound remittances, but we will continue to do more with these digital players. Let me also talk about Japan. Japan actually is a huge secular shift opportunity as well. But put that aside, I do want to talk about how this is a market where we still have significant room for shared gain. Right now, the Japanese government is driving a much greater level of digitization and Mastercard recently launched our domestic switching, thanks to Ed and his team, and of course, the local team as well in September 2022. When you put the 2 pieces together, timing is perfect. Without domestic switching, my own view is we can drive further upside in Japan in our share position. We will continue to grow acceptance to support inbound tourism, but also the Japanese government has the stated goal about more financial inclusion in terms of SMEs. And with this domestic relevance, we can deepen our collaborations with existing players such as Rakuten and MUN. With our domestic switch, debit and commercial becoming play. We launched digital debit with SBI, and we're now working on government T&E cards. And we can deliver more value-added services given we see more transactions now. I'll give you some examples, fraud detection with DTS, including new data risk recon, and we're supporting Rakuten with personalization using our dynamic yield. All right. I'm going to stop here, take a breath and let Linda talk about her examples.

All right. Thanks, Li. So across the Americas, we are equally driving share significantly across all our markets and all our products. I wanted to start with an example in Brazil, another Top 10 GDP market. Despite fierce competition in the market, including a government-owned DPI, we are the market share leader in Brazil, and we're continuing to take share away from the competition. How are we doing this? With partnerships with large customers in the market, with the likes of Bradesco, a competitive bastion in the market. We recently launched commercial products with Bradesco. With the likes of PicPay, we had our consumer business with them and announced this year that we were going to plus that up with commercial payments. And then, of course, with Nubank, who we all know is one of the largest digital banks in the globe. We have been their exclusive partner for over a decade, and they recently announced that they've reached 100 million consumers in the market of Brazil, more than half the adult population of Brazil. We have benefited meaningfully from their growth as well. Now these competitive takeaways and these new product launches, they are driving our share. Importantly, they are also driving our financial growth, not just share for share's sake. We are -- many of you often ask us, when financials are the same, why does Mastercard win? And the answer is very simple. We're winning because our account teams have a solutions-oriented approach to solving customer pain points. We're also winning because of our services. And we have many examples of where services come to life with our customers. With existing customers, we optimize their portfolios and layer services on top. When we go after new customers, we demonstrate how services can help them well beyond cards. Almost every one of our contracts has at least one or more services components in those contracts. And so just a few examples here to make it come to life. We have Walmart and Sam's Club with whom we've been their co-brand partner for many, many years. Well, they are also using our test-and-learn capabilities to measure the effectiveness of their retail business. With Citizens, who you heard us talk about, they are flipping their -- they flipped their entire debit business to us this year, a flawless conversion. They appreciated the Mastercard brand because they liked our open banking capabilities. They leverage our commercial SmartPay platform. They're leveraging fraud insights and our Labs as a Service and innovation assets. And then the Central American Bottling company, CBC in Central America, one of the largest distributors of beverages, including Pepsi. They are launching a platform for the millions of small businesses that they serve. That platform needs cards, and it needs marketing, loyalty and personalization services. They're working with us to help service those millions of small businesses.

Great examples. Let me also add Monzo and Commonwealth Bank of Australia. So well, Monzo is this fintech bank in the U.K. and CommBank, Commonwealth Bank of Australia, also known as CommBank is a leading global bank in Australia. So what do these 2 have in common with Mastercard? Two things. One is both have really broad and deep payment business with us. With Monzo, we actually started with prepaid. And today, we service more than 10 million of their customers with debit, CreditFlex and SME debit cards. CommBank, we've partnered for over 40 years. We support all their consumer card portfolios, including debit, credit, StepPay, which is their version of buy now, pay later and all their commercial credit. But two, what's in common is we don't stop there. We don't just stop at the payment switching business. We support both with lots and lots of services. For example, with Monzo, we actually do fraud solution on account-to-account. I think you hear us talk about this. Our fraud solutions isn't just for the card rail, it's for account-to-account. With a digital bank, that's very relevant because the ability to pull funds and access other bank accounts is very critical to grow their business. So we actually address their fraud. And we also support their marketing campaigns by -- to drive their customer acquisitions. We provide market insights and consultancy to drive their innovation. CommBank, a very strong set of services partnership gateway. We power their merchant offers. We just piloted open banking with them, and we also do consulting services, so very robust set of services capabilities that really is what create the differentiation in our partnerships. Now I know Linda and I come across us very excited. We can tell you about our customers all day long, but I think it's important for you to hear from them directly how we add value to their innovation and to their services. Let's queue the video. [Presentation]

We are so proud of the customer relationships that we've built, the secular shifts that we're driving, the market share that we're winning, and of course, the services that differentiate us. And I'll tell you the best is yet to come. The pipeline is rich, and we're very excited about our future. With that, I'm delighted to turn it over to our fearless CFO, Sachin Mehra, to take us through the financial perspective.

Hi, everyone. It's great to be here with you today. I appreciate you staying with us over the last couple of hours to hear about our strategy and our execution plans. We've covered a lot of ground. So what I thought I would try to do is pull it all together by covering the following 4 areas: Mastercard's recent financial performance, our compelling growth and diversification story, our investment and capital planning priorities and our thoughts around our performance objectives over the 2025 to 2027 period. Let's start by level setting on our recent financial performance. As you can see, we have consistently delivered strong net revenue growth over the past few years. You will recall that during this time period, we were impacted by the effects of the pandemic, and we suspended our business operations in Russia. Yet we still delivered, and we delivered strongly. In fact, when factoring in our latest guidance, we expect to deliver a net revenue compound annual growth rate of approximately 12% over the 5-year period on a currency-neutral basis and including acquisitions. Moving to the next slide. Let's dive further into the last few years and talk about our 2022 to 2024 performance objectives. These objectives were set out on a currency-neutral basis, excluding special items, gains and losses on equity investments and acquisitions made after 2021. As a reminder, we shared these objectives on November 10, 2021, at our investment community meeting and before we ceased our operations in Russia. Based on our Q4 guidance that we shared with you 2 weeks ago, the headline here is that we expect to deliver very strong results, in line or above our objectives given the parameters we laid out at the time. Overall, net revenue is forecasted to grow at a compound annual growth rate of approximately 17% or 19% when excluding Russia. We remained above our annual operating margin commitment, and we expect to deliver compound annual EPS growth over the period of approximately 25% or 27% when excluding Russia, which is well above target. It is a very strong story that demonstrates the resiliency of Mastercard and our ability to execute even through volatile geopolitical and macro environments. Let's talk a little bit about what brings this resiliency to Mastercard. We have intentionally invested over time to diversify and strengthen our business. Here are a few examples of how we have continued to evolve and grow the profile of the company since 2020. Starting with our diverse geographic footprint. With approximately 70% of the net revenues of Mastercard generated outside of the U.S., we are competitively differentiated, giving us greater flexibility to navigate through various macro and geopolitical environments and also providing us the opportunity to realize the massive digitization opportunity across these international markets. We have also evolved over time from a product perspective, offering a diverse range of credit, debit, prepaid and commercial solutions. Commercial now represents approximately 13% of total GDV with significantly more opportunity to grow. It's also incredible to see the progress we have made with value-added services and solutions, which now represent nearly 40% of total net revenues. As a reminder, our value-added services and solutions provide us several benefits, which include diversification, an engine for faster growth, and importantly, differentiation to help us continue to win in payments. These services and solutions are fueled by our data. The more the transactions we switch, the more the data we see. And we now switch nearly 70% of total Mastercard transactions. This is a targeted effort. For example, over the past few years, we have begun switching Mastercard-branded transactions in Japan and in Mexico. As Jorn said, this is a key driver and metric for us with an opportunity to further increase switching penetration. So hopefully, this gives you a good sense of how our business has evolved and how our continued diversification makes us a stronger Mastercard. Now with our recent financial performance and compelling diversification story as background, let's dive into the Mastercard growth algorithm and the different pillars that work together to help us realize this opportunity. First, it's about being in the flow to capture the natural growth of economies around the world. And while the growth of economies is not in our control, we can show up locally across the globe and be present in geographies with significant growth opportunities. Second, there remains a sizable opportunity to capture growth from the secular shift to digital payments across both volume and transactions in consumer payments. There is so much opportunity left to displace cash and check and the addressable market keeps expanding with new business models and with new markets like China. This isn't just happening. We are actively driving it by growing acceptance and by delivering best-in-class technology like Tap on Phone, passkeys and tokens. You saw on the previous slide that we now have approximately 150 million acceptance locations worldwide, and we continue to grow this acceptance footprint at a rapid pace. The secular opportunity is not limited to consumer. There is significant opportunity to penetrate cash and check in commercial and new payment flows. Part of this is expanding commercial point-of-sale purchases where we size the opportunity at approximately $16 trillion in cash and check. Just to put this in perspective, this opportunity is primarily targeted through card payments where we are the experts. And think about this relative to consumer payments, where around $23 trillion inflows ex China are carded, and that has taken us almost 60 years to do and driven strong sustainable growth along the way. Fourth is around winning more market share of the already carded flows. As you heard from Linda and Ling Hai, we have had a constant drumbeat of wins across the globe in both consumer and commercial due to our local presence, our partnership approach and our differentiated capabilities. Over the last 3 years, we've grown our share across all products on a global basis. There is no plan to let up. Other factors such as portfolio optimization, pricing, mix of business and level of rebates and incentives also play a factor in our growth. And of course, it's also about driving growth in our value-added services and solutions. We have been and continue to invest in here. Our suite of solutions complements and strengthens our payment network while also driving sustainable revenue growth. We have carefully chosen where we play and always look to add in areas that have large and fast-growing addressable markets. It is all underpinned by the competitive advantages we have, such as our payments expertise, our network distribution and rich data inputs. Putting it all together, our growth algorithm is composed of several unique growth vectors that collectively enable strong long-term growth potential for Mastercard. Now that we've talked about the growth algorithm, let's double-click into the market opportunity. Starting with payments, the targeted opportunity continues to grow and stands at approximately $154 trillion in 2024. With $54 trillion in consumer payments, there remains a substantial growth opportunity to continue to convert cash and check to digital forms of payment around the globe. Excluding China, 50% of the addressable market is non-carded today. That opportunity is large in both emerging markets as well as in developed ones like the U.S., Japan and Germany. Add on to that the China opportunity, which Mastercard is well positioned to capture given that we have recently started switching domestically. Beyond volumes, there is an even greater opportunity when you look at transactions where approximately 70% of transactions for consumer payments remain uncarded. The commercial and new payment flow addressable market is almost twice the size of consumer payments at $100 trillion. Specifically, in commercial, approximately 95% of the flows are uncarded today. In addition to that, there remains a $20 trillion opportunity of untapped payment flows in disbursements and remittances that we can target via our Mastercard Move capabilities. Moving next to value-added services and solutions. You heard Craig discuss the strategy in place to drive sustained growth, but I did want to level set on the tremendous progress that we have made in this area. We've consistently delivered strong revenue growth while also building upon these assets to drive the growth of our payment volumes and to win market share. Specifically, over the 2022 to 2024 period, we expect our value-added services and solutions net revenue to grow at a compound annual growth rate of approximately 18% on a currency-neutral basis. And in 2024, we estimate that the total VAS net revenues will be approximately $11 billion. Our total targeted opportunity is approximately $490 billion in addressable revenue. And let me emphasize, this is potential revenue, which is different from what we talk about in payments, where we size the addressable market in terms of volumes. When we look at our key areas of focus where we have solutions in market today, our serviceable addressable market is at least $165 billion in aggregate revenue. Growth in value-added services and solutions is driven across several vectors. First, our value-added services and solutions benefit from market growth that is fueled by structural tailwinds like digitization, AI, B2B modernization and growing cyber threats. And we drive growth beyond those structural tailwinds. So let me spend a few minutes talking about that. A portion of our services revenue is driven by our payments network. In 2024, we estimate that roughly 60% of our VAS revenues will be linked to network growth, a good proxy for which is processed transactions. The opportunity for continued growth in payments creates a natural tailwind for value-added services and solutions. Another element of how we drive growth is by increasing penetration of our existing solutions to both new and existing customers. And finally, we are building and buying new capabilities to convert more of the target addressable market of $490 billion to serviceable addressable market. Our planned acquisition of leading threat intelligence company, Recorded Future, as well as the recent acquisition of the subscription management company, Minna Technologies, do just that. I just mentioned that approximately 60% of VAS revenues are linked to the payment network. The vast majority of the remaining VAS revenues are primarily platform or engagement-based. Combined with our network-linked revenues, these platform-based solutions offer a nice stream of recurring revenue. We estimate that approximately 85% of VAS net revenues are recurring in nature, providing multiyear reliability in our VAS revenue growth. Within VAS, there are also other solutions, which includes products like cross-border services and open banking as well as bill pay and real-time payments infrastructure. They offer significant strategic benefit to us and bring payment choice to our customers. Now switching gears to our investment priorities. Our business has tremendous growth potential, and it is critical to make the right investments to deliver on short, medium and long-term growth. It all starts with our strategy. What do we want to accomplish and what is the best way to achieve our objectives. As we make investments in these focus areas you have heard about today across consumer payments, commercial and new payment flows and value-added services and solutions, we will do so through a combination of organic investments, acquisitions and partnerships. Also remember, none of this happens without investment in our strategic enablers. Our people and our technology underpin the success of our strategic priorities. For example, we have been investing in AI for over a decade, and that has helped us and our products be more efficient. There is further opportunity there. And of course, the trust derived from the resiliency of our technology and the recognition of our brand both remain key. We will continue our disciplined approach towards expense management by investing in a balanced manner. As it relates to our capital planning priorities, they remain consistent with what we previously shared with you and continue to serve us well. As you may recall, our capital planning priorities are: #1, maintain a strong balance sheet, and we believe this is an imperative for the role we play in the payments ecosystem; #2, invest for the long-term growth of our business through organic and inorganic means, given the significant growth opportunity; three, return excess capital to our shareholders through a combination of share buybacks and dividends with a bias towards share buybacks. Note that we've now returned over $80 billion to you, our shareholders, through buybacks and dividends since the 2006 IPO. And #4, we will continue to optimize the mix of debt and equity. And now moving on to our 3-year performance objectives, all of which we are establishing on a currency-neutral basis, excluding the impact of special items, gains and losses on equity investments and any further acquisitions. Using the 2024 forecast as our base, over the 2025 to 2027 period, we expect to deliver a net revenue compound annual growth rate in the high end of low double-digit range on a currency-neutral basis, including the impact of the acquisition of Minna and the planned acquisition of Recorded Future. This assumes an annual carded market volume growth rate of 9% and growing our value-added services and solutions net revenues at a high teens net revenue compound annual growth rate. We're confident in our ability to deliver high end of low double digits net revenue growth given the current macro environment, the strong fundamentals of our business and our multiple growth levers. From an operating margin perspective, we will continue to operate with the philosophy of delivering positive operating leverage over the medium to long-term while continuing to invest for growth. We have shared a minimum annual operating margin target in the past. We are increasing that minimum to 55% over the period, while still providing us flexibility to continue to invest in the long-term growth potential of the business. And finally, we expect to deliver an EPS compound annual growth rate in the mid-teens range on a currency-neutral basis, excluding the impact of special items, gains and losses on equity investments and any further acquisitions. So let's wrap it all up. We remain optimistic on the future of Mastercard. We have tremendous runway in all facets of our business across payments and across services. We have a proven growth algorithm and a strong track record of delivering top and bottom line growth. We prioritize opportunities aided by structural market tailwinds and those that reinforce the virtuous cycle across payments and across services. And that's where we invest. These differentiated solutions powered by our vast data and our network expertise position us to win. Our strategy is strong, and our execution is even stronger. We remain committed to delivering value to our customers and the markets in which we operate. And in doing so, we'll deliver results to you, our shareholders. With that, I will hand it over to start the Q&A session.

So we're open for the Q&A session now. Please, there will be mics running around. We'll have Sachin joining remotely -- hopefully. Please wait for the mic to state your name and state your affiliation before you do ask your question. The team is running around with mics now. Please put your hands up. Perfect. Joe, do you want to come up here?

Ramsey El-Assal from Barclays. Fascinating day as usual, greatly appreciate it. I wanted to ask Craig a question about the 60% of the VAS that was network link services. Is that a -- can we consider that sort of almost a euphemism for nondiscretionary -- in other words, to what degree do your customers when they buy -- when they issue a Mastercard are they kind of -- it's in their best interest in a pretty significant way for them to then go a little bit further and sign up for those services. And I guess also given 60% are kind of network linked and grow with your core business, is it safe to assume that the incremental growth in value-added services is coming from the non-network linked part of that business, a double header there.

Well, I would expect nothing less from you, Ramsey, than a double-headed question. So let me hit both those. One, to your first question, is it in their best interest to use the network linked products? We think, yes, because all of the products -- frankly, whether it's network linked or not, are delivering value. They are created with a specific need or issue in mind to address to provide value to a customer. Are they nondiscretionary? No. There -- these are still products or services that customers will choose to avail themselves of in many cases. Now there are some that are sort of embedded in -- this is how we protect the integrity of the system, and we need all of our stakeholders within the network to use those products to make sure that everyone who's connected to the network is benefiting from the same safety checks and security and overall integrity. But a significant portion of this -- like take an example of one of the ones I referenced stand in, right? Standard is not required for a customer to use, but it absolutely delivers a much better experience for a consumer in the event an issuer is unable to -- or goes down or loses the ability to process traction -- transactions in real time, which we see regularly across our network of partners. So it's an example of something that's in our customers' best interest to use to either continue to provide overall integrity, safety and security, to reduce their own risk associated with fraud, and that's certainly in their interest in everybody's interest and to deliver a really high-quality consumer experience. As it relates to future growth, it's an important part of growth, and we expect, as you've heard, with the virtuous cycle, we expect transaction volume to continue to grow as we continue to take advantage of the secular migration as we continue to increase the percentage of our transactions that we switch, as we continue to expand, win market share and bring more partners onto the system, that lifts the overall transaction volume. And so as Sachin said, process transactions are a good proxy for network linked. And so those will lift. But there's then 40% of the other services that we're selling that are not linked to the network. These are things like the cybersecurity solutions that there is a clear need in the marketplace that our customers have, and we have world-leading capabilities in, for example, with threat intelligence, post-close on Recorded Future that we'll sell into those opportunities alongside of but not explicitly linked to the network.

Ramsey, if I can make one additional comment. So discretionary, slightly different spin to it. While it's discretionary not to invest in cybersecurity, most customers decide to anyway. So comes back to the point about being anchored on things that really matter across the board. That's #1. And #2 is, there is an advantage here -- customers will make the choices they make. And they have options out in the market, but there is a beneficial situation of being a payments partner and being really close to the transaction vis-a-vis somebody else who comes with a security solution that isn't so close. So therefore, the network linked, there's different -- a whole range of dynamics at work that give us a preferential position.

Switch over here. Maybe Bryan.

It's Bryan Keane. Sachin, I guess I was hoping you could just walk us from the high teens previously from '22 to '24 to the low end or the high end, sorry, of low double digits and then the low 20s EPS to the mid-teens EPS. Maybe just walk as high level, the differences from that period to this period that gets you to those growth rates.

So sure, Bryan. Hopefully, you can hear me. Yes, very well, -- it's -- I mean what you're comparing is a little bit of a different environment from when we last had an Investor Community Meeting. As you remember, we were just exiting COVID and we had the impact of coming off of a low base at that point in time. And our guidance in our last Investor Day was predicated the fact that you were going to have this natural recovery, which took place in the first year of the guidance period, which is 2022. And you saw a fairly robust growth take place from a net revenue standpoint from Mastercard at that point in time. Order of magnitude is slightly north of 20%. Then when you think about what happened in 2023 and what we're talking about in terms of guidance for 2024, it's very much in line with what we're talking about for the next 3 years, which is the high end of low double digits range. So I would attribute the differential of what you saw in the last Investor Community Day and what you're seeing today is primarily the impact of coming off a low base from COVID. And that's true for net revenue, and that's true for EPS. The other difference on EPS is, obviously, we are operating in a lower tax environment in the 2022 to 2024 period. Now sitting in -- as we do with the global minimum tax coming into play, we're incorporating a slightly higher tax rate, which we've talked about previously. So those are 2 big fundamental differences.

Sanjay?

Sanjay Sakhrani from KBW. It's clear international is a critical part of the story. I'm just curious, Michael, you talked about your steady discussions with governments. Ling Hai, discussed the launch of China, which is amazing. I'm just curious, given those markets aren't growing up like the developed ones did, how you guys see the revenue TAM there? Is it -- has it changed over time? Or is it the same just difference there? And then maybe just broadly, if you look including the United States, what's the most significant competitive threat of achieving these amazing expectations?

All right. So maybe I kick off and then invite Linda and Ling Hai to comment on that. And forgive me if I talk about China for a moment. Sanjay, to your point, China grew up differently in a protected environment. It is an orchestrated economy to a large degree. And things that are relatively unusual in the world like QR code, were a big part of the Chinese ecosystem. And there's Chinese -- the whole idea of the super wallet really only exists in China. So there's a few things that are really special. But now, the Chinese government is interested with economic challenges they need to work through to really connect the Chinese economy a lot closer to the rest of the world. And you've heard Ling Hai talk about this, opening up straightforward acceptance having people who go there, give them the ability to just pay any way they would pay anywhere else in the world. You start to see that ecosystems that are very unique in the end, come to a point as more and more people use it, that you want flexibility, interoperability and so forth. And that's where we stand for. So fundamentally, we don't see this as locked in, but it's an opportunity for us to come in and improve the value of our proposition and take it on from there. You see in Africa, things start in an entirely different way. It's mobile-based financial services. So that grows up in a different way. But here, contrary because it's an open market, we are participating from day 1 with our investments in MTN and Airtel and so forth. So we're in the market growing financial -- mobile-based financial services. To the revenue dynamics, they are obviously different there country by country, case by case. If you think about Africa, obviously, it's lower transaction size, it's lower revenue per transaction. Otherwise, the revenue can't carry it. That's a tremendous potential overall. And we're anyway linking in with services across the board beyond the payment solution.

So maybe one of the -- so maybe just very quickly on markets outside the U.S. In general, my view is, one, when we grow our domestic volume and business, and we do more switching, we see more transactions, that's not only good for the core, it's also good for services. There's plenty of evidence. So that actually changes the revenue dynamics. But the other thing I think I mentioned in the China discussion about home and away, these things are linked together. Can you imagine somebody use a card for only home and another card for away? No, you use one card for both. So as we, for example, see more acceptance, as Michael said, in China or more acceptance in Japan, that's going to help American tourists go into Japan or European tourists going to Japan. So it's a great boost for our cross-border business in terms of the interlinking of the world. Another great example I think about is -- my world and Linda's world in the U.S., for example, we have this wholesale program for travel where hotels and airlines are getting paid by the OTAs like Expedia, Ctrip. Well, a lot of the acquiring is actually happening in the U.S. So issuing maybe in Asia, acquiring is in the U.S. So again, that is a big boost for our overall revenue profile. But in the emerging markets, my view is back to the basics. Sometimes you have to focus on the issuance and acceptance, and then you grow things that are on top of that.

Let's go the next question -- we give you long a very long answer, Sanjay, so the next one.

Tim Chiodo from UBS. I want to talk a little bit about Mastercard move, specifically the cross-border portion. So this service, you're distributing it through banks and fintechs. And I want to see if you could talk a little bit about what is it replacing? Is it removing traditional wires? And then how much faster, cheaper, more transparent is it? So what are the advantage that basically those distribution partners are getting?

Sure. Happy to answer that. The MasterCard move, I think you're talking about the current. I'm also happy to talk about the commercial payments pilot that we just launched. The Move product, yes, sometimes it does replace existing means of payments. Sometimes it replaces checks or cash. Or for example, if it's an insurance disbursement or if it's a refund or if it's a payroll cross-border payroll, it sometimes actually replaces cash and check. So it depends on what the use cases that we're going after in terms of exactly how it works today versus how more efficiently and more low cost, more digitally, it works in a different context. And then in commercial payments, we announced at Sibos that we're putting a scheme on top of the correspondent banking network to bring a lot of our schemes. And this is to bring in sort of a clearing transaction that is much needed. So what it does is basically when a sender wants to send money through a sending bank to a receiver at a receiving bank. Before anything happens, we just make sure that we authenticate the receiver. The information is correct before you do anything. So what that does is that you are able to save liquidity. You don't have earmark the funds on one side. You save liquidity at the other side because you know when the money is coming. And that you also don't have any fallout on data. So you're actually able to transmit the data. Usually, this falloff on data, the rejection rates, their liquidity issues. It solves for a lot of that in the current system. So it really depends on the use case that you're talking about, and the answer is very different depending on the use case.

Harshita?

Harshita Rawat, Bernstein. As you expand into account-to-account bill payments and commercial opportunities, how important is the flexibility around interchange? I know you talked about flexible interchange already. And is that kind of still a big sticking point? Or is the bigger challenge is kind of to kind of do the use case by use case build to kind of grow this opportunity?

Yes. Thanks, Harshita. So it's a great point. I think for any new vertical, any new segment we go after. We need to figure out how we can win both on the economic side as well as on the value proposition. And you called out Bill Pay, this is typically whereby in some markets, the alternative or the competition for Bill Pay is a very low-cost ACH transaction. And so you have to be able to compete. Now that doesn't mean you have to get part because I think we -- with our reach, with our propositions, with our value we can probably command a higher price than what is currently kind of account, but we have to adopt. As you know, our economics to the merchant is a combination of our own fees and interchange, but our own fees is a very small bit of the total. And so as we go into new segments, that's transit, that's Bill Pay, that's commercial, that's SME -- we are very active in looking at how do we meet that and make sure that we can compete. But the other leg, as you mentioned, it's the value proposition. We want to win on the merits of the solution that we put out there. And I think we've been able to prove time and again that as we set our minds to it, we find that. And we are in the process of doing that with Bill Pay.

I think Andrew has his hand up here.

Andrew Schmidt from Citi. Thanks so much for all the content today, great presentations. Actually, this is a related question. I want to dig into the $63 trillion opportunity in commercial payments. Could you talk about just the biggest unlocks there Obviously, there's some sticky higher ticket flows in that category. I think flexible interchange is a part of the strategy to attack those flows. But what are the other levers you can use to unlock that? It seems we're closer to unlocking that opportunity, but I'm just curious on that front.

Yes. No, I appreciate the question. Yes, we're closer to unlocking the opportunity, which is why we increased our serviceable market versus, let's say, 3 years ago. The biggest unlocks come from actually understanding the industry in a lot more detail, understanding that the enterprise platforms now that are being embedded to solve some of these problems, and understanding that we have one of the best, if not the best, virtual card engine in the market. And so what we're able to do, a lot of this is about the ability to free up working capital the ability to embed payment terms in the working -- in the virtual card, the ability to streamline the workflows, put controls on the payments to be able to use data for reconciliation more efficiently. Those all come together to drive the unlock. And so that's why -- and the pilots are going very well. We've announced a couple of them, and there are lots of other things going on in the background to drive more volume in some of these new ways of doing things. And then by the way, the other unlock comes from what I talked about in terms of verticals. We're also going after verticals because there are specific verticals where we can go after invoice payments, the way we did in travel so that we can actually move those even without the enterprise platforms, we can move those with virtual cards in creative ways using point of aggregation where if you make it happen, it scales. It's kind of like the OTAs that Ling Hai was talking about.

Saw Darrin, jumping around over there.

It's Darrin Peller from Wolfe Research. I want to ask actually one financial question and then one quick one on tokenization. And on the financial side, first, I know back in '21, you guys had long-term targets of low to mid-teens, and that was beyond your CAGR. And now we have your value-added services at such a higher mix and growing. So help us frame, a, how we should think about the cadence for the next few years, first as we get more and more mix coming out of VAS? And if there's any conservatism just given what we're seeing in terms of average transaction sizes, FX vol. And I guess my quick follow-up on tokenization. Just where are we in terms of number of tokens out there for you guys per card? And what kind of pricing, what kind of value-add pricing opportunities does that give you over time?

Sachin, do you want to go first?

Sure. Darrin. So to your question around cadence, look, I mean, we'll get into what our outlook for 2025 is as the year begins next year. But broadly speaking, I think you should assume that the range we've given you, which is the high end of the low double digits range for net revenue is generally a range in which we would see each of those 3 years come around, which is '25, '26 and '27. So there'll be some variability year-over-year, but broadly speaking, it's in that range. And then to your question around the longer-term outlook, which we had historically shared with you, which is beyond the 3-year period, the reality is the prospects for the business are equal, if not better, than what they were historically. We just thought it appropriate to focus on what the next 3 years looks like. We've kind of walked you through our strategy and we walked you through what the addressable market is. We've talked through what our assets are to address the opportunity in hand. And we feel very good across both payments and services to deliver on that long-term growth prospect we've historically spoken about. So that's broadly what I would share with you in terms of both cadence as well as the long-term outlook.

So thanks for the question on tokenization. I'm really grateful because I'm very excited about that. And so what's more important as a metric on tokenization is not so much the number of tokens that have been issued, but percentage of transactions that are tokenized. And today, we are over 30% of all transactions are tokenized, right? That's a very substantial one, growing very fast. Now, we're so excited about this because whenever a transaction is tokenized, we see approval rates domestically 3 to 4 percentage points higher than non-tokenized transaction and cross-border, that goes to 6%, 7%. So really substantial value that we bring back to the merchants who can do sales to the issuers who could do the transactions. And obviously, we like that too. So much so that we're now on a path to phase out pan entry in e-commerce by the end of the decade, phase out a static passwords and OTPs by the end of the decade, like a real important structural ecosystem shift that we're making analogous to the [indiscernible] to EMV chip back in the day that we're now doing with tokenization. Now as we -- as we bring so much value into the ecosystem, obviously, we want to price for that as well. And that's what we have started doing that we will continue to do because we need to continue to invest. We need to make sure that this stays up to markets. And the bad guys are out there, they're well funded, too. So we need to make sure we stay ahead of that, and that's what we're doing.

And importantly, from a customer perspective, what we've been hearing on approval rates is that implementing tokenization has allowed them to increase their approvals between 3 and 5 percentage points. So the value that our merchants, our customers are receiving through implementation of tokenization it's not just protecting them from fraud, it's actually driving good volume to the system. A win-win.

Darrin, and I want to quickly link your question to Sanjay's earlier question. So one thing how markets grow up, as they grow up in the time that they grow up. So you have some emerging markets that are now starting to really accelerate and they want to start with tokenization on day 1. You just don't know how to do it. So we might not be the only choice in the market, but we have a really powerful tool here to deliver value from day 1. So this is a real effective way to be part of how markets grow up going forward. So it drives value for us in many different ways.

James?

James Faucette from Morgan Stanley. I wanted to go back to China and Japan and some of these other new -- not new markets but markets that are still developing. How should we think about like the opportunity for domestic in those markets, especially with the new licensing in China and what's happening in Japan versus international? And maybe I'll dovetail it with -- to a question to Sachin when you think about those markets in your new midterm outlook, do you expect them to contribute more or less or similar on a go-forward basis to the growth rates?

So I think the way to think about these markets is in the near-term, so China definitely is a long-term opportunity. In the near-term, there will be investments that are needed. So the near-term actions that need to take place that require resources and investment to support the long-term growth that we will be seeing. And I think that's a similar story with Japan as well, acceptance, cost resources, the technology itself cost resources. But I think overall, on the cross-border side, some of the benefits can be quite imminent and immediate, especially, for example, Japan this year, you clearly see a huge a surge of inbound because the Japanese yen is relatively cheap, a lot of tourists are going there. So that's how I think about cross-border versus domestic. But yes, there will be some near-term investment that's going to be required.

And to the second part of your question, we factored exactly what Ling Hai said, right? I think you said it well, we factored exactly what you said into our medium-term guidance in terms of both the investment side of the equation as well as the revenue opportunity. The only point I'll make is going into the next 3 years for Japan, right is now that we will have 3 years of switching capabilities, which is included in our guidance as well, which is different than what we had in the last 3-year period when we -- for the first year, we really did not have switching and then switching started towards the tail end of 2022. That's the only other thing I'd add.

Tien-Tsin?

It's Tien-tsin Huang from JPMorgan. Just want to ask on services margin. 60% of the business is network linked. So I'm curious, does the incremental margin on that look like a network margin. And what do the margins look like on the 40% that's not network link. And if you don't mind, if I ask a business question, the carded growth, you talked about 9% growth. I think it's a little bit lower than 10% to 11% you've called out in the past. I know there's still penetration potential with switched transactions. You just talked about network tokens as well. I was a little surprised you didn't talk more about processing and gateway, I think, Craig, you mentioned a little bit, but just with issuer processing and the opportunity there. Is that something we could expect Mastercard to do more of or not necessarily?

And Sachin, do you want to start? And then Jorn on the [indiscernible].

Tien-Tsin, which one of the 6 questions should I take first? All right. Let's go -- so you asked about what the profile of cost is. You called it margin. We've oftentimes said as it relates to value and service and solutions. We kind of think about it as the following, which is what is the incremental cost of delivering that incremental dollar of revenue for value-added services and solutions. And you can see that across the portfolio, we have a diversified set of solutions. So you've got those which are network-based. And then particularly in the cybersecurity space and in the security solutions space as Recorded, those tend to come with very little incremental cost as it relates to the incremental revenue which has been delivered. I'm not going to give you specifics as it relates to whether it's network-like economics, but the reality is the incremental cost of delivering the incremental revenue on those services is fairly small. When you start getting into things like marketing services and consulting, by definition, the nature of those services are such that you need to put people to work out there to actually deliver the value we deliver to our customers to generate the revenue we do. We think it's incredibly important to have this wide portfolio because the reality is our customers value what we deliver from a consulting standpoint and a marketing services standpoint, which in turn differentiates us on the payment side. So it's all about the portfolio effect. If you're trying to think about the overall profitability of what we call the value-added services and solutions. The best way to think about the levers we've got are, #1, what is the mix, which we've got in these network linked services and how we can grow that mix? But recognize, we're not looking to get to 100% on network-based services because we like the diversification effect, which comes from platform and engagement-based services as well. So hopefully, that answers your question on the value-add services and solutions. The second question you asked, Tien-tsin, was around the 10% to 11% carded market volume growth recognize that 10% to 11%, which we've kind of shared with you was, again, exiting COVID and you had the tailwinds of higher growth for the first year, which was coming through. I think we had talked about over the longer-term of 9% to 10% carded market volume growth in our last Investor Day. We're talking about 9% carded market volume growth. The reality is our business has been incredibly successful. We've been executing on that business. And remember, this is a combination of what our outlook for PCE is over the next 3 years as well as what the outlook for secular shift is. I think we've hit upon the secular shift piece quite -- in quite some detail. So you better take both those factors into consideration, and this is what we do when we give you that 9% carded market volume growth rate.

And yes, perhaps very briefly on processing and gateway. So in terms of the processing side, we are, at our heart, a network. And the network works best if you have a whole series of players around us, industry players, processors, technology players who build their business on our network and make us thrive. And so our intent on the processing side is not to compete with the markets of this world but to enable them. And I believe that we've been very successful given how fragmented that market is. And certain specific areas like in -- for fintech in Europe or for prepaid. We have a processing business. We like it, we nurture it because it's very specific. But that doesn't take away the fact that our main thrust in that is enable others to make the network bigger and more powerful. Gateway is slightly different. You could argue gateway is a similar concept because more gateway is a great thing. But our gateway allows us in a number of geographies to touch more transactions, more than just Mastercard transactions and then deliver services to these transactions and hence expanding our TAM. It also allows us to occupy or to touch transactions in geographies where we're not allowed to switch, which in the current environment with a more complex context is actually an important asset to stay relevant in those markets where switching is more difficult. So it's a much more strategic asset for us than perhaps processing, whereby we're more opportunistic.

I have time for one more Craig upfront here.

Craig Maurer from FT Partners. So one question for Sachin, which is VAS, it looks like it's going to be about 38% or so of net revenue with the '24 guide and going to roughly 44% with the new 3-year guide. Thinking about the long-term, at what point do we cross over where Mastercard is more of a services business necessarily than a payment processing business and follow-up for Ling, which is since we have -- since co-brand cards were outlawed in China, you've seen all those cards split, like you said, one domestic, one for cross-border. What's the pace at which you can convert that back to a single card that can be used globally, but also obviously drive domestic usage?

Should we do that from first? Do the China one first -- sure. I'm I don't know if I have an exact time line for you and quickly as possible. That really is the goal. So look, what I know is our -- so the real litmus test is this when we got our license, our issuers and acquirers are very excited in China, right? That's the real litmus because there's always this question, is it too late -- is it difficult to do. Why are they excited because they want choice. They want innovation. And I feel with the quantum that I'm looking at, people like players like ICBC, for example, very huge, and it's a very major partner, ABC, Agricultural Bank of China, similarly. So I think we want more as soon as possible, but some of the constraints will be around acceptance, consumer awareness. So those are where we are spending our investment and resources to build out but also to communicate to the consumers on the domestic side.

Craig. I'm happy to take the second part of your question. I think -- let me just level set here. I think it's really important that even though we disaggregated our revenues into payment network, and value-added services and solutions that we shouldn't lose perspective about the fact that this is a virtuous cycle. By being in the flow, we get the data by getting the data, we deliver value-added services. So that all added services in turn, help us win more share and drive greater payments growth. So I wouldn't think about this as necessarily a -- is Mastercard a services company or is Mastercard a payments company, it's actually very tightly integrated. I mean the point that Craig made is that approximately 60% of the revenues on value-added services and solutions is tied to the network. And so it's really important for us not to lose sight of the fact that we need to be in the flow. We need to drive those volumes, which in turn helps us to deliver the value-added services and solutions. And while the disaggregation of revenue might get you to the numbers you're talking about, the reality is what we as a management team look to do is drive overall net revenue yield and overall net revenue growth for the company, which is a combination of the revenues we generate from payments, as well as value-added services and solutions.

Awesome. Thank you, Sachin. Any closing comments, Mike?

Well, first of all, well said, Sachin is sharp as ever, even on Zoom for us. So thank you for staying with us the whole day. Thank you for joining us all together. You heard the story doubling down on the strategy. There's powerful tailwinds that push us forward, and we're executing with excellence. That's what throughout everything that we've heard, plenty of opportunity. You told us before what you wanted to hear about, what's in services? What's the target market, all that. We've never really talked about that. Because we didn't really need to. There was a big opportunity right in front of us that we understood, but we are growing, and we're looking for the next opportunity. So we shared it with you today. I hope you find that insightful. I'm sure we get more questions from you over time and very happy to engage on that. But fundamentally, we're excited. This is an excited team to push this forward and deliver value to you and our shareholders. Thank you very much. Take care.

Thank you, Michael. Thank all of you for your support of Mastercard. A big thank you to all the teams who worked so hard to put all this together. This is the end of the webcast. But as a reminder, for all of you here, there's a couple more hours and activities to do. The Board members will be up in the Hamilton room right after this for an open dialogue on lunch to talk to them. Product demos will be open for 3 more hours till 3:00, and we have breakout starting 1:00, all listed up on the screen. We can go in and have an open dialogue to deep dive further into these topics. I hope you enjoy the rest of the afternoon. Thank you very much.