Capital

Cash, cash equivalents, restricted cash, and investment securities were $6.6 billion as on September 30, 2009.

Management expects annual free cash flow in excess of $2 billion in FY10, and capital expenditures in the range of $200 million to 250 million in FY10.

Dividend

On December 1, 2009, V paid quarterly dividend in the aggregate amount of $0.125 per share of class A common stock (determined in the case of class B and class C common stock on an as-converted basis) to the holders of record of the Company's class A, class B and class C common stock as of November 16, 2009.

On September 1, 2009, the Company paid a quarterly dividend of $0.105 per share of class A common stock (determined in the case of class B and class C common stock on an as converted basis) to the holders of record of Visa’s class A, class B, and class C common stock as of August 14, 2009.

Unlocking 30% of the Class C shares

There was a scope from July 1, 2009, to September 30, 2009 for unlocking 30% (~45 million) of the Class C shares (representing the non US banks), of which there are ~151 million. The purpose of this is to regulate the unlocking of the C shares better, which were set to unlock in their entirety on March 2011. With the average trading volume for V representing ~9.5 million share per day, the firms believe the market should be able to easily absorb the stock (if the banks choose to sell). Management indicated that there is no secondary offering contemplated as a result of this transaction, as it represents only ~5 trading days’ worth of volume. This will not impact the fully diluted Class A share count, just the public float, as the Class A share count is already on a converted basis.

As of September 30, 2009, 89% of the potentially available shares requested were unlocked. The remaining class C shares continue to be subject to the general transfer restrictions that expire on March 25, 2011, under Visa's Certificate of Incorporation.
 

Upholding the highest standards of professional and personal conduct and acting with openness and transparency are essential parts of how Visa operates. These principles are critical to earning and retaining the trust of financial institution clients, merchants and cardholders.

A comprehensive corporate governance framework ensures that the Company follow global best practices and provides a foundation for  approach. Visa’s corporate governance guidelines, charters and key practices of board of directors provide the framework. Visa also is guided by a board composed of a majority of independent directors.

The Code of Business Conduct and Ethics ensures that honesty and integrity are paramount in everything Visa does. The code applies to all employees and directors and covers a wide range of business practices and procedures.

On November 24, 2009, Visa Inc. and SHPS, Inc. announced the renewal of a collaborative agreement, which pairs the world’s largest electronic payments network with one of the nation’s largest providers of account-based, consumer-driven healthcare solutions. Under the terms of the renewal, Visa remains the preferred payment brand for employee benefit card programs administered by SHPS, which serves large and mid-sized employers, health insurance carriers, and government agencies.

On November 19, 2009, UniRush Financial Services and Visa Inc. announced that they have renewed and expanded their long-standing relationship. As part of the agreement, UniRush will continue to offer the Prepaid Visa RushCard, providing financially underserved consumers with a better alternative to cash and checks. Additionally, UniRush will enable its Prepaid Visa RushCard products to participate in Visa ReadyLink - Visa's prepaid load network - extending the convenience and security of reload services to RushCard members.
 

Litigation and Regulations – Any unfavorable result with respect to litigation, and regulatory issues could adversely affect V’s profits. 
Economic Slowdown – Visa's payments volume growth and processed transaction growth may be negatively impacted by an economic slowdown in the U.S. and/or globally.
High Competition – Although the payment card network market is an oligopoly and the likelihood of new entrants is low, competition is high among the existing players.
Foreign Exchange – A significant portion of V’s revenue is international and fluctuations in exchange rates could adversely affect V’s earnings.
Integration Risk – Visa recently consolidated three entities, Visa U.S.A., Visa International, and Visa Canada, into one company. While there may be synergy opportunities there may be also integration risk in the near term.
Pricing Pressure – Consolidation in the financial services sector may lead to pricing pressure or loss of market share.