Mark Begor

Mark Begor
CEO Americas
Americas
Americas Growth
Served Assets / Originations
($ Billions)
~$91
Growth Plan
1
Add B2B Distribution … Build B2C
2
Drive Penetration and Usage
3
Rollout New Products
4
Drive Cross-sell
5
Regional Expansion
$78
$49
~35
Originations
~56
Served
Assets
33
13
$27
36
'03
NI $MM $465
45
'04
'05
'06E
$651
$872
~$1,100
Fast Growing, Focused Consumer Finance Company
2
Americas Transformation
2006E
ag
e7
%
ns 2%
Personal Loa
7% %
2
a
ad
n
Ca
Mo
rtg
LA
2%
Sales
Finance
20%
LA
2003
Sales Finance 24%
Cards 78%
Cards 57%
Net Revenue $4.0B
Net Revenue ~$6.2B
Served Assets
$27B
$56B
# Products
2
10
# Countries
5
11
Transformation From Single Product To Multiple Product
The US Consumer
Unemployment Low
$10B
7%
6
9
5
8
4
7
3
Consumer Spending Strong
6
2002
2004
2006
Wages Still Increasing
2000
$7.5B
2002
2004
2006
Home Sales Concerning
5%
7.0
4
3
6.5
2
6.0
1998
2000
2002
2004
2006
Aug 05
Consumer Indicators Balanced And Spending Strong
Aug 06
New Product Partnerships
RCF
RSF
Dual Card
BCS
CPS
Personal Loan
Canada
Latin America
KAWASAKI MOTORS RETAIL FINANCE
45+ New Partnerships Added
5
Retail Cards
Assets
Growth Plan
($ Billions)
17%
17%
~$24.9
~3.2
Dual Card
$21.2
1.6
PLCC
19.6
New Accounts
16MM
Expand Retail Distribution …
Drive Penetration
2
Accelerate Dual Card Transformation
3
Innovate by Adding New Retail
Products: Personal Loan, Debt Can
4
Drive Cross-sell
~21.7
(ex Macys & Exxon)
’05
Dual
2X
1
’06E
17MM
Dual Card and Penetration Driving Growth
6
Dual Card Roll-Out
Launch Date
Oct ’03
Asset Growth
($ Billions)
Oct ’04
~$3.2
Oct ’04
+$3B
+$3B
Feb ’05
$1.6
Mar ’05
$0.2
’04
Apr ’06
’05
’06E
Jun ’06
Dual Card Roll-out Driving Retail Assets
7
Personal Loans
Growth Plan
Assets
($ Billions)
~$1.6
1
Expand Retail Partnerships
2
Continue D2C Growth
+$1.3B
+$1.3B
$0.6
$0.3
’04
’05
’06E
Strong Core Growth . . . Targeting ~$3B Assets By ‘07
8
New Technologies
• “Blind” Pre-screen at Retailer POS
• Requires Availability of Name/Address
QuickScreenTM
3X Take Rate !
• Scan Drivers License Into Kiosk
• Cross-sell Built in for Speed Pass
Driver’s License
Swipe
60% Lift in Approval Rate
• Partner Branded and GE Money
• Easy to Apply … Frequent Offers
Internet
Internet Apps Growing 5X In-store
• Cardholder “Waves” Card by Reader
• Authorization Through Radio Signal
Contactless
Devices (RFID)
2X Speed !
Making It Easy to Offer … And Easy To Apply
9
Retail Sales Finance
Assets
Growth Plan
($ Billions)
~35%
CAGR
~35% CAGR
~$16.3
1
Expand Distribution
2
Drive Usage and Penetration
3
Expand into New Markets
4
Transform from Single to Multiproduct Model
5
Leverage Technology and
Infrastructure to Drive Productivity
$11.8
$8.9
’04
’05
’06E
New Markets And Increased Penetration Driving Growth
10
Production
Geographic Expansion
($ Billions)
~$35
$33
HUB Locations
Strategic Sales Offices
$19
Sales Force
33%
33%
643
’04
’05
~731
415
’06E
’04
’05
’06E
US Geographic Expansion Driving Growth
11
Regional Expansion
Assets
Growth Plan
($ Billions)
~$8.8
Canada
~$4.7
Latin America
• Brazil: Grow Payroll Product, Expand
Branches
~$2.2
Mexico
• Argentina: Branch Growth, Bankcards
Rollout, Payroll Product
+8.4B
$0.4
‘03
Mexico
• Mexico: Drive New Products and Enter New
Market Segments
~$1.9
’06E
Mexico
Argentina
• Central America: Bankcard, Mortgage,
Personal Loan, Auto
Brazil
Brazil
Canada
Central America
• Canada: Hbc Expansion, Dual Card,
Mortgages
From 5 Countries To 11
12
Mexico
Growth Plan
Assets
($ Billions)
~$2.2
35%
35%
$1.5
Mortgage
$1.2
0.6
Consumer
0.6
’04
~0.9
1
Cards … Adding Retailers, Rollout
Dual Card
2
Mortgage … New Products and Channels
3
Auto … Increase Distribution
0.7
0.8
’05
~1.3
’06E
GE Money
Strong Double Digit Growth In Fast Growing Market
13
Central America
JV Assets
Branch Network
($ Billions)
Costa Rican Branch
~$4.1
Guatemala
17 Branches
20%
20%
$3.4
Honduras
16 Branches
Guatemalan Branch
El Salvador
17 Branches
‘05
’06E
Credomatic - Panama
Nicaragua
20 Branches
Costa Rica
22 Branches
Panama
4 Branches
Strong Growth In Underbanked Region
14
Cross-sell
Cross-sell Process Flow
Volume
Database
($ Billions)
Marketing
2.7X
2.7X
(Modeled Names)
Trigger Events
Risk Change
Utilization
Usage Behavior
Late Pay
~$2.4
Customers Flagged
$0.9
Products /
Customer
Warm Lead Channels
’05
’06E
Collections
Internet
1.5
~1.8
Customer Svc
Declines
Statements/DM
“At Risk”
Homeowner Calls
Cross-sell Driving Asset And Income Growth
15
Americas Productivity
Key Actions
• Operating Leverage… Growing CV
2.5X Faster than G&A Costs
250 bps
36.4%
33.9%
• Best Cost Country Sourcing… Up
400 Seats in Philippines
• Digitization and LEAN… Reduce
Cycle Time and Drive Efficiency
G&A / CV
• Roof Tops… $11MM Save in ’07
• E-Servicing… $6MM Save in ’06,
Huge Opportunity in ’07
’05
’06E
Continued Strong Productivity
16
Americas Summary
Assets
($ Billions)
• Strong Double-Digit Core Growth
~$47.0
• Dual Card Driving Retail Growth
$38.6
$32.0
'04
'05
'06E
• Fast Growing Sales Finance Business
With New Big Ticket Market
Opportunities
• Big Growth and Opportunities in
Latin America
Net Income
($ Billions)
~$1.1
$0.9
$0.7
• X-Sell Leveraging Huge Customer
Base
• Deep Risk / Collections Expertise
• Continued Productivity
'04
'05
'06E
Fast Growing, Focused Consumer Finance Company
17