innovation + leadership = Community Impact

innovation + leadership = Community Impact MasterCard St. Louis Community Affairs Report 2007

St. Louis is home to the MasterCard Worldwide global technology and operations headquarters, the largest MasterCard office in the world. Around the clock, MasterCard employees build and maintain advanced technology, including the sophisticated global network that quickly and securely processes billions of payment transactions each year. These same employees also build and maintain a strong network within the St. Louis community, volunteering thousands of hours and dollars each year. While our efforts comprise two distinct kinds of networks, both are vital to the foundation and success that MasterCard has built. Innovation + Commitment = Solutions In late 2006, we announced a new strategic focus for our local support of education: advancing excellence in the teaching of math. Through Project Math, we seek to help improve student math achievement by increasing support for math teachers. Our business makes us well aware that solid math understanding is crucial for consumers to manage their finances and navigate everyday life. And, with the range of both technology and financial career paths at our St. Louis office, we also recognize the implications that math achievement has for the employability of tomorrow s workforce. This, the first report of MasterCard Community Affairs, highlights Project Math, plus our support of other areas of need in the St. Louis region, to illustrate how our contributions, in concert with those of many others, add up to cumulative impact, making a significant difference in our community. Generosity + Spirit = MasterCard Employees MasterCard community involvement relies upon the great hearts and minds of our vibrant, diverse workforce. In 2007, as in previous years, hundreds of our employees volunteered time to teach in local schools, mentor robotics teams, improve homes in financially disadvantaged communities and help expand the reach of local non-profit organizations. We take pride in the long-time MasterCard commitment to supporting our community and to enhancing the region where so many of our employees live, work and raise their families. We look forward to our continued efforts to help advance achievement in education, build workplace employability and enhance the quality of life in St. Louis and beyond. Rob Reeg Chief Technology Officer MasterCard Worldwide

We take pride in the long-time MasterCard commitment to supporting our community and to enhancing the region where so many of our employees live, work and raise their families. Rob Reeg Chief Technology Officer, MasterCard Worldwide Table of contents Passionate Volunteers Page 3 Robust Citizenship Page 7 Project Math 2007 Milestones Oct. 2007 Sept. 2007 May 2007 March 2007 Dec. 2006 MasterCard launches Project Math Hope for Youth Award from Junior Achievement Educational Progress Award from Partners for Progress MasterCard United Way campaign surpasses milliondollar mark MasterCard hosts Math Education Summit Spirit of St. Louis Technology Award from St. Louis Regional Chamber and Growth Association Page 9 Dec. 2007 Environmental Award recognition from Cintas Document Management Company Philanthropic Investments Award for United Way Leadership from the Regional Business Council 2

dedication + leadership = Inspirational Volunteerism At MasterCard, sharing time and talents through volunteerism creates exponential impact by sharpening leadership skills, deepening business and community results and inspiring and empowering others. St. Louis teams build volunteer commitments into their business plans in a variety of ways, contributing thousands of volunteer experiences over the course of the year. Leaders at all levels seek opportunities to heighten business acumen through team-building volunteer projects, which encourage teamwork, integration and inclusion while making a difference for those in need. Our 2007 team projects benefited diverse at-risk populations being served by St. Louis Crisis Nursery in St. Charles County, Operation Food Search, Edgewood Children s Center, KidSmart and more. Mia Rethorn With chief of staff responsibilities for the MasterCard Global Debit Operations organization and managing the MasterCard Debit Reconciliation team, Mia Rethorn is accustomed to juggling a variety of opportunities and challenges. Volunteering is important to me and I feel like I am called to do as much of it as I possibly can, says Mia, a senior business leader. Mia is passionate about her volunteer involvement with Rebuilding Together, helping needy families rehab their homes in the St. Louis area. In 2007, Mia took on a leadership role as a team captain, working with 15 volunteers. Her responsibilities ranged from planning and prep work to the delegation of tasks the day of the event, even making runs to the hardware store. You re making a difference in the life of a family that may not be as fortunate as you. At the end of the day, you get to see the progress you made and the smiles on the homeowners faces, Mia says. MasterCard offers incredible opportunities to help others in the community, Mia says. I believe that it s our obligation to take care of the least fortunate and it s something that I know MasterCard believes in too. 3

passionate volunteers Junior Achievement of Mississippi Valley MasterCard has collaborated with Junior Achievement since 2000, sharing time and talent with nearly 10,000 St. Louis-area students. In fact, MasterCard helped bring the JA in a Day model to St. Louis in 2003. The 2007 JA in a Day program included 265 MasterCard employees volunteering their time to teach a day of JA curriculum and activities centered on entrepreneurship, workforce readiness and financial literacy. FIRST Robotics FIRST (For Inspiration and Recognition of Science and Technology) seeks to inspire young people to be science and technology leaders by engaging them in exciting mentor-based programs that build science, engineering and technology skills, inspire innovation, and foster well-rounded life capabilities including self-confidence, communication and leadership. Since 2003, MasterCard support of FIRST Robotics has grown to include volunteer service as competition judges, planning committee members, and event volunteers. The spring competition provides high school students opportunities to work with corporate and community mentors to design, build and test robots, while fall competitions offer innovative challenges for younger students and those new to FIRST. Rebuilding Together Rebuilding Together - St. Louis revitalizes neighborhoods in partnership with the community by rehabilitating the houses of low-income homeowners, particularly the elderly and the disabled, so that they may continue to live independently in comfort and safety. Rebuilding Together - St. Louis also renews neighborhoods by rebuilding community centers, playgrounds and other community projects. In 2007, the twelfth year of our volunteer involvement, 200 MasterCard employees helped refurbish six houses in an urban St. Louis neighborhood on National Rebuilding Day. By the Numbers Donation Drives MasterCard employees generosity is shown through the thousands of dollars and items donated to charitable drives throughout the year, including: 1,000 soccer balls for Iraqi children through Missouri Marines $12,400 and 2,810 food items for Operation Food Search 127 bicycles for St. Joachim & Ann Care Services 436 coats for FISH of St. Charles County, a not-for-profit agency that provides food and clothing for the less fortunate $2,623 for KidSmart to provide free school supplies for students in need $13,000 and two truckloads of goods and gifts for immigrant and refugee families served by the International Institute More than 700 pairs of glasses collected for Gift of Sight Eyeglass Drive 126 gave blood during Red Cross Blood Drives 185 participants raised $10,936 for St. Louis Komen Race for the Cure 4

vision + commitment = Community Leaders It is a remarkable privilege to be affiliated with such an exceptional company that demonstrates humanitarian support to the community in which we live and work. Being on the International Institute s board gives me the opportunity to represent MasterCard while making a difference in lives of the clients the Institute serves. Edgar Smart Senior Business Leader, Global Network Services MasterCard leaders share strategic vision and insight as active contributors on the boards of not-for-profit organizations. In 2007, MasterCard board affiliations included the following civic, charitable and cultural organizations: 5

passionate volunteers Fifteen-year MasterCard employee Pat Smith Thurman usually is first in line to help and the first to advocate for community-building opportunities. Pat is the group head for Financial Services Development, where she manages a staff of more than 160 employees worldwide, incorporating volunteerism as teambuilding. In July, Pat organized a group of 50 to paint and clean at Edgewood Children s Center, a non-profit that offers treatment programs addressing children s severe emotional, behavioral and learning problems. Pat shares her talents in numerous efforts, inside and outside of MasterCard. As a board member, committee chair, fundraiser, speaker and event planner, she represents organizations such as the National Conference for Community and Justice, the Regional Business Council s United Way Women s Initiative, the United Way of Greater St. Louis Cabinet for African American Leadership Initiative and the George Washington Carver House. In recognition of her commitment to excellence in business and community involvement, the St. Louis American Foundation, St. Louis RCGA and the Urban League of Metropolitan St. Louis named Pat the 2007 Corporate Executive of the Year at their Salute to Excellence in Business Awards. A dedicated volunteer, Pat also teaches students through our JA in a Day program and judging the local FIRST Robotics competitions. Volunteering as a FIRST judge is tiring, yet it s so invigorating, she says. By working with students through organizations like FIRST, we re helping the next generation build business and technical skills. In addition, Pat is a strong advocate of mentoring, volunteering her time to mentor as many as four individuals per year. When I mentor, I share my life experiences and stories. I pass on what I know to others, Pat says. I m able to convey the message that if I can do it, they can too. Pat Smith Thurman As a United Way board member, I enjoy using my business knowledge and compassion to help advance the organization s success so that they can continue to provide critically important services and support in our community for those who need it most. Don Ascare Group Head, Human Resources 6

generosity + matching contributions = Deeper Support By the Numbers Matching Employee Donations St. Louis employees leveraged the company matching gift program to double the support they provided for many not-forprofit organizations in 2007. More than 40% of St. Louis employees participated More than $209,400 provided to match employee donations MasterCard contributes significant support to critical areas of need in the region, including United Way of Greater St. Louis. The company also provides grants to organizations such as the International Institute of St. Louis, Cardinal Glennon s Costas Cancer Center, Missouri Families for Effective Autism Treatment, Rainbow Village and Rebuilding Together. To support the generosity and community involvement of employees, the MasterCard Matching Gift Program provides company matching funds to the charitable organizations employees personally support. Charitable organizations like ours frequently lack sufficient funds to integrate technology into our learning programs. The recent MasterCard grant to build a computerized classroom at the Institute will open the learning doors for St. Louis new Americans. Teens will have access to computers for homework and research, our vocational education training will transition to computer-aided learning and technology can now become an integral part of our English instruction program as well. Anna Crosslin President & CEO, International Institute of St. Louis 7

robust citizenship United Way of Greater St. Louis MasterCard conducts an annual United Way campaign, raising funds for health and human service organizations in the St. Louis community. Thanks to the generosity and community-minded spirit of our employees, donations to the annual campaign, year over year, have increased, from $10,000 the first year to about $1 million in 2007. MasterCard support of the United Way includes matching employees donations, chairing the local Leadership Giving initiative and sharing employee time and talents on various boards and committees. Preferred Card Relationships To help local non-profit organizations raise additional funds, MasterCard leverages the power of its brand through strategic partnerships with cultural and charitable organizations. Preferred card relationships include exclusive offers for cardholders who use their MasterCard cards to support selected arts organizations. In a year when our community is challenged to have breakout success in addressing pressing community needs, MasterCard Worldwide has again stepped to the forefront as a key leader. The success of the United Way campaign at MasterCard is no accident; it is simply another example of commitment by the company and the employees to each other, their customers and the community. John Glenn Vice President, United Way of Greater St. Louis, Tri-County Region 8

1 2 3 4 5 math teachers + innovative solutions Project Math areas of focus Sharing national and international expertise Facilitating regional partnerships Assisting local districts Sharing intellectual resources through employee volunteer opportunities Donating technology = Project Math For MasterCard, creating an environment that fosters financial literacy and economic growth is an essential part of being a responsible corporate citizen. In St. Louis, home to our worldwide technology headquarters, MasterCard initiated Project Math in late 2006, pledging $1 million over three years to advance excellence in the teaching of math. Local and national levels of achievement in mathematics do not measure up internationally, which carries serious implications for the employability of tomorrow s workforce. MasterCard is one of many companies in which careers depend on advanced technology and financial skills, and we want to help provide visibility and resources for math education experts who have the power to foster change in the classroom. While teachers are one of the most important influences in children s lives, resources for their professional development are often lacking. Through our grants for innovative solutions that improve opportunities and tools for math teachers, they may increase their impact upon students, and serve as models for our community and beyond. Project Math is in progress, and year-one efforts chart strong opportunities. Math Education Summit: Global Expertise, Local Possibilities MasterCard convened a one-day Math Education Summit in St. Louis, engaging local educators and business and community leaders for dialogue on international perspectives and best practices in math education. Summit highlights included a keynote presentation by Dr. Lianghuo Fan, associate professor of mathematics education at Singapore National Institute of Education, on Singapore s successful approach to math curriculum, as well as inspiring presentations on classroom best practices from Frank Corcoran, founding teacher of KIPP Academy New York, and Jason Kamras, special assistant to the chancellor for teacher performance in the District of Columbia Public Schools and 2005 National Teacher of the Year. 9

project math I was so impressed to be in the offices of a huge business speaking to business leaders. I was able to return to my students and say, The people at MasterCard want you to learn math so you can go to work for them someday. -- Frank Corcoran, Math Teacher, KIPP Academy New York University of Missouri-St. Louis: Mathematics in Gear The University of Missouri-St. Louis co-sponsors the GEAR UP-ST. LOUIS program to increase the college attendance rate of low-income students in the metropolitan area. MasterCard underwrote intensive math professional development for more than 50 middle school teachers in 33 partner middle schools, impacting nearly 6,000 students in 2007 alone. As we look to significantly increase the number of students who are prepared to enter and succeed in post-secondary education and future careers, business partners such as MasterCard are critical links to generating lasting educational improvements to benefit the region. -- Thomas George, Chancellor, University of Missouri-St. Louis Teach For America Teach For America places qualified, top recent college graduates in our neediest public schools in 25 regions throughout the country. Currently, there are 123 Teach For America corps members teaching nearly 11,000 students in St. Louis. With the acute need for highly qualified math teachers, the 2007 MasterCard grant underwrote recruiting, training and ongoing professional support. Thanks to MasterCard support in the 2006-2007 school year, Teach For America increased the number of math and science teachers in the St. Louis area to 32, up from 18 in the previous school year. MasterCard is helping Teach for America support teachers who are working relentlessly to change the lives of St. Louis students and its support has been significant in helping us meet our growth plan goals early. -- Dustin Odham, Executive Director, Teach For America St. Louis 10

Wentzville School District: Singapore Math Pilot Program The MasterCard campus is located within the Wentzville R-IV School District, and the company is a strong supporter of district initiatives to advance student achievement. In 2007, MasterCard helped fund the district s implementation of an innovative after-school math program using a curriculum called Singapore Math, which builds on the successful approach to mathematics in Singapore, the country that leads the world in student math achievement. All eight of the district s elementary schools offered the after-school program in the fall semester. Teachers, students and parents responded with enthusiasm, and the pilot reached full capacity immediately. The program served 160 students in second through fourth grades in the fall, with plans to serve another 140 students in the spring 2008 semester. Support from MasterCard means the difference in the resources we have for doing something new and creative for our students. The students will have the potential for some lasting long-term gains in learning math. -- Terry Adams, Superintendent, Wentzville School District 11 Junior Achievement Junior Achievement has been serving St. Louis area youth for 63 years, training volunteers from the business community to teach in local schools, helping students understand the relationship between what they learn in school and their successful participation in our economy. MasterCard contributes funds to cover the costs of program materials, volunteer administration, training and evaluation. In 2007, MasterCard funded JA programming at 18 schools, engaging students in hands-on learning activities designed to better their understanding of business and economics. 2007 JA in a Day: More than 265 MasterCard employees volunteered for the 2007 event, teaching 131 classes at six St. Louis schools, impacting more than 3,000 students. JA Volunteers: Eight MasterCard volunteers taught JA curriculum throughout the year at six local schools, helping more than 330 students learn about the St. Louis region, success skills and the global marketplace.

project math JA Fund-Raising Efforts: MasterCard employee teams participated in a Bowl-A-Thon to benefit JA, with 746 bowlers raising more than $45,000 for the organization. Funding and volunteers are vital in providing JA education programs to the children in our community. We are fortunate that MasterCard volunteers positively impacted the lives of more than 3,800 area students in 2007. -- Lori Jacob, President, Junior Achievement of Mississippi Valley, Inc. In his four years at MasterCard, Charlie Hall, a senior business partner in Human Resources, has taken on a leadership role for the annual JA in a Day project. As such, he is a strong advocate for the program and a highly successful recruiter of volunteers amongst his colleagues. It s very easy to get caught up in the day-to-day nuances in life, but if you set time aside to give back to the community, you ll soon find out that the reward is so powerful, so energizing, so valuable the end result certainly is worth so much more than the investment you put into it, Charlie says. As a project coordinator for the annual MasterCard JA in a Day, Charlie makes sure that the school programs run smoothly on event day, on top of teaching a class himself. At the conclusion of JA in a Day 2007, a principal pulled Charlie aside and noted that, A lot of organizations are out there talking the talk, but after what I saw today, I can truly say that MasterCard walks the walk. Charlie adds, Comments like this solidify my gratitude for the fact that the company I work for believes in doing what s right for the community. Charlie Hall 12

By the Numbers FIRST participants vs non-participants 13 A recent, independent evaluation of the FIRST Robotics Competition conducted by Brandeis University found that participants, when compared to nonparticipants, were: Significantly more likely to attend college: 88% vs 53% Roughly 10 times as likely to have had an apprenticeship, internship, or co-op job in their freshman year: 27% vs 3% More than three times as likely to major specifically in engineering: 41% vs 13% More than twice as likely to expect to pursue a science or technology career: 45% vs 20% FIRST Robotics: St. Louis Regional Competition MasterCard served as a major sponsor of the 2007 FIRST Robotics St. Louis Regional Competition, and provided significant employee volunteer involvement for FIRST projects throughout the year. We appreciate leadership from MasterCard in addressing the need to improve math education in K-12 schools. MasterCard s support of FIRST Robotics and similar after-school programs will help enhance the state s METS Initiative. -- Ashok Agrawal, M.S., P.E., Dean, Math, Science, Engineering & Technology, Director, Emerson Center for Engineering and Manufacturing, St. Louis Community College at Florissant Valley Fred Schwamle Fred Schwamle is one of the most frequent volunteers at MasterCard, dedicating his time for education efforts ranging from telementoring to JA in a Day to FIRST Robotics. Volunteering is my opportunity to give back to the community, says Fred, a senior software engineer. I enjoy the personal involvement with the kids and being a role model in their lives. Fred is involved with the FIRST Robotics Competition in a variety of roles, ranging from team management to helping build and repair the playing field on which teams compete to crowd control. Fred explains that the FIRST events are more than just team-building competitions -- they are opportunities for students to gain affinity for technology and engineering in a fun atmosphere. I love volunteering with FIRST because seeing the team-building and ingenuity that takes place is remarkable. The participants are the future workforce for companies like MasterCard, so I m happy to contribute to their interest in technology for their good and for the good of MasterCard, Fred says.

project math Washington University in St. Louis & St. Louis Public Schools: An Education Partnership for Middle School Mathematics In 2007, MasterCard funded a pilot professional development partnership between St. Louis Public Schools and Washington University in St. Louis to strengthen math instruction through facilitated classroom coaching and customized, graduate-level courses for math teachers and school administrators of grades seven through nine. We know that in-depth, small group professional programs for teachers make a difference, but they re costly to implement. Funding from MasterCard allows us to give teachers and schools the specific support they need. -- Victoria L. May, Assistant Dean of Arts & Sciences, and Director of Science Outreach Center, Washington University in St. Louis Working with Washington University was great for us. Teachers took the strategies they learned and immediately used them in their classrooms. Karen [the instructor] gave me insight into instructional strategies that I was able to utilize as I facilitated professional development within the district. Angelene Hayes Mathematics Supervisor, St. Louis Public Schools Math skills will be paramount for many future careers as our country continues to thrive on technological innovations. We are pleased to see MasterCard dedicating its time and resources to the issue and applaud their significant commitment to our region. Mark Wrighton Chancellor, Washington University, St. Louis 14

Saint Louis Science Center: Enhancing Elementary Mathematics Education Through funding from MasterCard, the Saint Louis Science Center implemented a model to improve math education in five schools within St. Louis Public Schools and Wellston School District. The program provides professional development, materials and extended learning opportunities that highlight the significance of exploring math in non-traditional ways. In 2007, 11 teachers and 167 students received classroom coaching and special math activities through guidance from trained Saint Louis Science Center staff. Fifteen teachers completed a professional development workshop focused on math, helping them learn how to support students research projects for math fairs. A subsequent math fair featured more than 80 projects and nearly 400 attendees. We are so grateful for the assistance of corporations like MasterCard in their support of our initiatives. There is a clear issue with the current state of math achievement, and together as a team, we have exponentially greater potential to generate measurable improvement in our community. -- Douglas King, President and Chief Executive Officer, Saint Louis Science Center Technology Donations MasterCard often distributes usable technology equipment to local schools and charities. More than 1,100 computers have been donated since 2001, including 260 in 2007. 15

innovation + leadership = Community Impact In 2007, MasterCard and its employees donated thousands of volunteer hours and hundreds of thousands of dollars to the St. Louis region. Whether rebuilding neighborhood homes, energizing local students about technology careers or funding coaching and professional development for math teachers, the MasterCard commitment to the St. Louis community is clear. MasterCard and its employees are proud to help raise the quality of life for families across the St. Louis region and look forward to next steps toward advancing regional math achievement and continuing to support critical areas of community need. For More information http://www.mastercard.com/us/company/en/ corporategiving/global_technology.html 16