On the legal and regulatory front, we proactively dealt with numerous challenges. Though challenges of this nature will undoubtedly continue to affect the payments industry, we believe that as a publicly traded company, we are in a better position to address them. Importantly, we will continue to remind the public of the vital role we play in advancing commerce around the world.

Our list of accomplishments would not be complete without noting our success in attracting new talent, developing leaders and fostering diversity and inclusion within our ranks. These areas continue to be company-wide priorities. Also notable were our efforts to support communities where we and our customers operate. One of these initiatives was the formation of The MasterCard Foundation, whose twofold goal is to build entrepreneurship through microfinance programs in developing countries and to prepare young people for success in a global workforce. I thank our financial institution shareholders and former board of directors for their support in creating this independent foundation. I believe it demonstrates both a substantial and meaningful commitment to economic development.

Creating Value across the Board

In many ways and in many places, our innovations and our connections are making us more valuable to everyone, on every side of every transaction. For every rushed commuter in Kaohsiung, Taiwan, who boards the bus using a TaiwanMoney card powered by MasterCard PayPass, there is a transit hub with shorter lines and a financial institution with a new stream of revenue. For every financial institution in Europe that converts its debit program to Maestro, there are consumers with more freedom to shop wherever they please, and storeowners benefiting from a boost in sales. For every retailer in Asia or Latin America who applies our powerful marketplace insights, there is a financial institution that sees increased card usage, and a cardholder who gains another Priceless® experience.

In short, MasterCard is at the center of it all, advancing commerce and making it more secure for everyone. That is largely why, when the investment community looks at our business, they see what we see: a company firing on all cylinders, driving commerce on a global basis and leading innovation in the payments industry.

In 2007, we will continue to advance commerce globally, helping our customers grow profitable businesses, forging stronger ties with merchants, offering consumers more convenient ways to pay and utilizing our strengths every way we can. After all, with 40 years of innovation and insight behind us, no company is in a better position than MasterCard to lead the way.

Robert W. Selander
President and Chief Executive Officer
April 2007