Growth of GE in the Americas
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Transcript of Growth of GE in the Americas
Americas
Mark BegorCEO Americas
2
Served Assets / Originations
Originations
ServedAssets
'04 '05 '06E
~$91
$49
$78
3645
~56
13
33
~35
'03
$27
$651 $872 ~$1,100$465NI $MM
Americas Growth
Fast Growing, Focused Consumer Finance Company
Growth Plan
1 Add B2B Distribution … Build B2C
2 Drive Penetration and Usage
3 Rollout New Products
4 Drive Cross-sell
5 Regional Expansion
($ Billions)
Americas Transformation
Transformation From Single Product To Multiple Product
Cards 78%
Sales Finance 20%
LA 2%
Cards 57%Sales Finance 24%
Mortgage 7%
Canada 2%LA 7%
Perso
nal Loans 2
%
2003
2006E
Net Revenue $4.0B
Net Revenue ~$6.2B
Served Assets $27B $56B
# Products 2 10
# Countries 5 11
The US Consumer
Consumer Indicators Balanced And Spending Strong
Consumer Spending Strong
6
7
8
9
$10B
2000 2002 2004 2006
Home Sales Concerning
6.0
7.0
6.5
$7.5B
Aug 05 Aug 06
Unemployment Low
3
4
5
6
7%
2002 2004 2006
Wages Still Increasing
2000 2002 2004 20061998
2
3
4
5%
5
RCF RSF
BCS
Dual Card
CPS
Personal Loan
Canada
Latin America
KAWASAKI MOTORS RETAIL FINANCE
New Product Partnerships
45+ New Partnerships Added
6
Retail Cards
Assets($ Billions)
PLCC(ex Macys & Exxon)
Dual Card
New Accounts 16MM 17MM
Growth Plan
Dual Card and Penetration Driving Growth
Dual2X
17%17%
’06E
~$24.9
~21.7
~3.2
’05
$21.2
19.6
1.6
Expand Retail Distribution … Drive Penetration
1
Accelerate Dual Card Transformation2
Innovate by Adding New Retail Products: Personal Loan, Debt Can
3
Drive Cross-sell4
7
’05
$1.6
’06E
~$3.2
Dual Card Roll-Out
Asset Growth($ Billions)
+$3B+$3B
$0.2
’04
Launch Date
Dual Card Roll-out Driving Retail Assets
Mar ’05
Feb ’05
Oct ’04
Oct ’04
Oct ’03
Apr ’06
Jun ’06
8
Assets($ Billions)
Growth Plan
’05
$0.6
’06E
~$1.6
$0.3
’04
Expand Retail Partnerships
Continue D2C Growth
Strong Core Growth . . . Targeting ~$3B Assets By ‘07
Personal Loans
+$1.3B+$1.3B
1
2
9
QuickScreenTM
• “Blind” Pre-screen at Retailer POS• Requires Availability of Name/Address
3X Take Rate !
ContactlessDevices (RFID)
• Cardholder “Waves” Card by Reader• Authorization Through Radio Signal
2X Speed !
Making It Easy to Offer … And Easy To Apply
New Technologies
Driver’s License Swipe
60% Lift in Approval Rate
• Scan Drivers License Into Kiosk• Cross-sell Built in for Speed Pass
Internet Apps Growing 5X In-store
• Partner Branded and GE Money• Easy to Apply … Frequent OffersInternet
10
’06E
~$16.3
Assets($ Billions)
’05
$11.8
Growth Plan
New Markets And Increased Penetration Driving Growth
~35% CAGR~35% CAGR
Retail Sales Finance
Expand Distribution1
Drive Usage and Penetration2
Transform from Single to Multi-product Model
4
Expand into New Markets3
Leverage Technology and Infrastructure to Drive Productivity
5
’04
$8.9
11
~$35
Production
$19
US Geographic Expansion Driving Growth
’06E’04 ’05
$33
Geographic Expansion
Strategic Sales Offices
HUB Locations
Sales Force
415643
’04 ’05
33%33%
’06E
~731
($ Billions)
12
Regional ExpansionAssets Growth Plan
• Mexico: Drive New Products and Enter New
Market Segments
• Brazil: Grow Payroll Product, Expand
Branches
• Argentina: Branch Growth, Bankcards
Rollout, Payroll Product
• Central America: Bankcard, Mortgage,
Personal Loan, Auto
• Canada: Hbc Expansion, Dual Card,
Mortgages
From 5 Countries To 11
$0.4
Mexico
Brazil
Argentina
Canada
Central America
Mexico
Brazil
+8.4B
‘03 ’06E
~$1.9
~$4.7
~$2.2
~$8.8
Canada
Latin America
Mexico
($ Billions)
13
MexicoAssets
Strong Double Digit Growth In Fast Growing Market
’05
$1.5
~$2.2
’06E
0.8
0.7
~0.9
Mortgage
Consumer
GE Money
Growth Plan
35%35%1 Cards … Adding Retailers, Rollout
Dual Card
2 Mortgage … New Products and Channels
3 Auto … Increase Distribution
~1.3
’04
$1.2
0.6
0.6
($ Billions)
14
‘05 ’06E
$3.4
~$4.1
JV Assets
Strong Growth In Underbanked Region
Guatemala17 Branches
Honduras16 Branches
El Salvador17 Branches
Nicaragua20 Branches
Costa Rica22 Branches
Panama4 Branches
Central America
20%20%
Costa Rican Branch
Guatemalan Branch
Credomatic - Panama
Branch Network($ Billions)
15
Collections
Customer Svc
Statements/DM
’06E
~$2.42.7X2.7X
’05
$0.9
Volume
Warm Lead Channels
Internet
Declines
“At Risk” Homeowner Calls
Customers Flagged
Cross-sell Driving Asset And Income Growth
Trigger Events
�Risk Change
�Utilization
�Usage Behavior
�Late Pay
Database
Marketing
(Modeled Names)
Cross-sell Process Flow
~1.81.5Products / Customer
Cross-sell
($ Billions)
16
Americas Productivity
’05 ’06E
G&A / CV
���� 250 bps���� 250 bps
36.4%33.9%
Key Actions
• Operating Leverage… Growing CV2.5X Faster than G&A Costs
• Best Cost Country Sourcing… Up400 Seats in Philippines
• Digitization and LEAN… ReduceCycle Time and Drive Efficiency
• Roof Tops… $11MM Save in ’07
• E-Servicing… $6MM Save in ’06,Huge Opportunity in ’07
Continued Strong Productivity
17
Americas Summary Assets
Net Income
($ Billions)
($ Billions)
'04 '05 '06E
$38.6
~$47.0
$32.0
'04 '05 '06E
$0.9
~$1.1
$0.7
Fast Growing, Focused Consumer Finance Company
• Strong Double-Digit Core Growth
• Dual Card Driving Retail Growth
• Fast Growing Sales Finance Business With New Big Ticket MarketOpportunities
• Big Growth and Opportunities in Latin America
• X-Sell Leveraging Huge Customer Base
• Deep Risk / Collections Expertise
• Continued Productivity