Synchrony Financial · NYSE:SYF
Synchrony Financial — Barclays Americas Select Franchise Conference 2016
21 slides from Synchrony Financial's conference presentation, May 17, 2016
Slide 1: Barclays Americas Select Franchise Conference
Barclays Americas Select Franchise Conference May 17, 2016 Exhibit 99.1
Slide 2: Forward-Looking Statements
2 This presentation contains certain forward-looking statements as defined in Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, which are subject to the “safe harbor” created by those sections. Forward-looking statements may be
Slide 3: Business Overview
Business Overview
Slide 4: Synchrony Financial Overview
4 Synchrony Financial Overview Strong Value Proposition for Partners and Consumers • Advanced data analytics and targeted marketing capabilities • Dedicated team members support partners to help maximize program effectiveness • Enhanced sales growth and additional economic benefits for partners • Ac
Slide 5: Partner-Centric Business with Leading Sales Platforms
5 Partner-Centric Business with Leading Sales Platforms (a) Platform revenue for period 2Q15 through 1Q16, $ in millions. Platform revenue is the sum of “interest and fees on loans,” plus “other income,” less “retailer share arrangements”. See non-GAAP reconciliation in appendix. (b) $ in billions,
Slide 6: Long-Standing Partnerships
6 26% Long-Standing Partnerships (a) As of March 31, 2016. (b) Platform revenue is the sum of “interest and fees on loans,” plus “other income,” less “retailer share arrangements”. See non-GAAP reconciliation in appendix. (c) Excludes certain credit card portfolios that were sold or have not been re
Slide 7: Expansive Opportunity
7 Expansive Opportunity (a) (a) Source: Nilson. $873 Billion of U.S. Credit Card Receivables $48 $52 $57 $61 2011 2012 2013 2014 $ in billions • Majority of growth is organic • Targeted marketing programs, digital capabilities, and value propositions helped drive organic growth Strong Receivables Gr
Slide 8: Deep Integration Drives 2-3x Market Growth Rate
8 1.5% 2.6% 2.7% 0.6% 7.6% 1.6% 9.2% 2.9% 7.5% 9.4% 10.1% 9.8% Mass Electronics Healthcare Apparel/Dept. Home Furniture $531 $278 $223 $213 $213 $77 2012-2014 Market Growth Rate 2012-2014 Synchrony Financial Purchase Volume Growth Rate 2014 Market Size ($ in billions) • Over 80 years of retail herit
Slide 9: Fast-Growing Online Bank
9 $7.4 $8.0 $9.2 $11.0 $13.0 $15.7 $18.3 $19.7 $21.3 $24.4 $27.6 $29.7 $32.5 1Q13 2Q13 3Q13 4Q13 1Q14 2Q14 3Q14 4Q14 1Q15 2Q15 3Q15 4Q15 1Q16 Growth Strategy Competitive rates and superior service afforded by low cost structure of online bank Opportunity to further leverage cross-sell opportunit
Slide 10: Robust Data, Analytics and Digital Capabilities
Robust Data, Analytics and Digital Capabilities
Slide 11: Proprietary Closed-Loop Network Advantages
11 Proprietary Closed-Loop Network Advantages Customer Merchant Acquirer Network Issuer General Purpose Card and Co-Branded Cards Synchrony Financial Closed Loop Network for PLCC and Dual CardTM Citi Capital One Chase Date Merch. Channel Brand Cat./SKU $ 4/2/16 Belk In- Store DKNY Women’s Shoes 468X
Slide 12: Data Analytics Driving Actionable Insights
12 Channel Contribution Data Analytics Driving Actionable Insights • Understand performance and opportunity by region • Optimize field sales investment to maximize sales • Sales and profitability trends by: - Product category - Region - Customer segment - Coupon issuance, redemption • Ability to ide
Slide 13: Strong Online Sales Growth and Digital Capabilities
13 (a) Source: US Census Bureau, Quarterly Retail E-Commerce Sales, 4th Quarter 2015. E-Commerce sales are sales of goods and services where an order is placed by the buyer or price and terms of sale are negotiated over an Internet, extranet, Electronic Data Interchange (EDI) network, electronic mai
Slide 14: Performance & Strategic Priorities
Performance & Strategic Priorities
Slide 15: Strong Operating Performance
15 $1,979 $2,109 $2,214 2013 2014 2015 4.68% 4.51% 4.33% 2013 2014 2015 Net Earnings $ in millions Loan Receivables $ in billions, period-end balances CAGR 9% Net Charge-Offs (b) % of average loan receivables Platform Revenue (a) $ in millions $9,422 $10,126 $10,833 2013 2014 2015 CAGR 7% Improved 3
Slide 16: Peer Comparison: Margins, Growth, Balance Sheet
16 (a) Segment data for AXP-U.S Consumer Services and COF-Domestic Card. Other data-total company level. (b) SYF yield calculated as loan receivable yield less net charge-off rate. AXP-U.S. Consumer Services yield calculated as total card member loan yield less net charge-off rate on card member loa
Slide 17: Focus on Higher Quality Asset Base
17 19% 8% 20% 20% 61% 72% • Synchrony Financial controls underwriting and credit line decisions • Focus on stronger underwriting has led to higher quality portfolio - 72% of loan receivables have FICO > 660 Stronger Portfolio U.S. consumer FICO (a) Delinquency Performance 30+ days past due as a % of
Slide 18: Strategic Priorities
18 Strategic Priorities Grow our business through our three sales platforms Position business for long-term growth Operate with a strong balance sheet and financial profile Leverage strong capital position Expand robust data, analytics and digital capabilities • Grow existing retailer penetration •
Slide 19: Appendix
Appendix
Slide 20: Platform Revenue Reconciliation
20 ($ in millions) Mar 31, Jun 30, Sep 30, Dec 31, Mar 31, Dec 31, Dec 31, Dec 31, Mar 31, 2015 2015 2015 2015 2016 2013 2014 2015 2016 Platform Revenue Total: Interest and fees on loans $3,140 $3,166 $3,379 $3,494 $3,498 $11,295 $12,216 $13,179 $13,537 Other income 101 120 84 87 92 500 485 392 383
Slide 21: Non-GAAP Reconciliation
21 Non-GAAP Reconciliation The following table sets forth a reconciliation of each component of our capital ratios to the comparable GAAP component at March 31, 2016. COMMON EQUITY MEASURES GAAP Total common equity .....................................................................................
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