American Express Company · NYSE:AXP
American Express — Goldman Sachs U.S. Financial Services Conference 2016
23 slides from American Express's conference presentation, Dec 6, 2016
Slide 1: American Express Company
American Express Company Goldman Sachs U.S. Financial Services Conference December 6, 2016
Slide 2: AXP Business Model
= XP Business Model $) 00 0 a% ™M Crm CARD MEMBERS , a Y PAYMENT ISSUER ISSUER PROCESSOR CLOSED LOOP .- CF , A, Y MERCHANT MERCHANT PROCESSOR ACQUIRER NETWORK D [AVIERICAN EXPRESS o <p & HOt 2 MERCHANTS
Slide 3: Diverse Customers and Geographies
Diverse Customers and Geographies Customers Geographies % of Billings, Q3’16 % of Billings, Q3’16 LACC 6% US JAPA Consumer 18% B2B 31% 40% EMEA US 11% 66% Global Int'l Network Consumer Services 11% 18% 3
Slide 4: AXP Business Model
AXP Business Model Assets Capabilities Relationships Trusted Brand Marketing / Sales Diverse Customers Premium Positioning Risk Management Merchants Channels Data Analytics Corporate Clients Closed Loop Data and Information Servicing Business Partners Travel Network Rewar
Slide 5: 2016 – 2017 Key Priorities
2016 – 2017 Key Priorities Accelerate Optimize Reset the Revenue Investments Cost Base Growth 5
Slide 6: Progress on Investor Day Initiatives
Progress on Investor Day Initiatives Resetting the Cost Base 6
Slide 7: Progress on Investor Day Initiatives
Progress on Investor Day Initiatives Resetting the Cost Strong Loan Growth Base and Credit Quality 7
Slide 8: US Loan Growth and Credit Quality
US Loan Growth and Credit Quality U.S. Revolving Credit YoY Growth AXP U.S. Write-Off Rate Industry AXP US AXP US Adj* 13% 10% 2.1% 7% 6% 1.8% 4% 4% 5% 1.5% 1.4% 1.5% 1% 1.4%** (13%) (18%) 2012 2013 2014 2015 2016 Q3 YTD 2013 2014 2015 2016 Q3 YTD Note: U.S Revolving credit growth based on non-seaso
Slide 9: Progress on Investor Day Initiatives
Progress on Investor Day Initiatives Resetting the Cost Strong Loan Growth Record Number of Base and Credit Quality New Card Members 9
Slide 10: AXP-Issued U.S. Card Acquisitions
AXP-Issued U.S. Card Acquisitions Quarterly Average for 2011-2014, in millions ’11-’14 Avg. 1.4M 2.3 2.1 2.1 2.1 1.8 1.6 1.7 1.6 1.3 1.4 1.3 2011 2012 2013 2014 Q1'15 Q2'15 Q3'15 Q4'15 Q1'16 Q2'16 Q3'16
Slide 11: Progress on Investor Day Initiatives
Progress on Investor Day Initiatives Resetting the Cost Strong Loan Growth Record Number of Base and Credit Quality New Card Members Strong International Billings Growth 11
Slide 12: International Billed Business Growth
International Billed Business Growth Q3’16 YTD FX Adj % Increase/(decrease) vs. Prior year: UK 14% Japan China 14% 27% Mexico 13% 12
Slide 13: Progress on Investor Day Initiatives
Progress on Investor Day Initiatives Resetting the Cost Strong Loan Growth Record Number of Base and Credit Quality New Card Members Strong International Progress on Digital Billings Growth Initiatives 13
Slide 14: Digital Assets and Capabilities
Digital Assets and Capabilities Digitally Acquired Cards* Amex Checkout Average 2015 Conversion Rate 20% Amex Masterpass Visa PayPal Amazon 2015 2016 Oct YTD Checkout Checkout Checkout Source: PYMNTS.com insider report, READY.SET.BUY(BUTTONS) Digital Partnerships Millennial Engagement Amex Make up
Slide 15: Progress on Investor Day Initiatives
Progress on Investor Day Initiatives Resetting the Cost Strong Loan Growth Record Number of Base and Credit Quality New Card Members Strong International Progress on Digital Billings Growth Initiatives 15
Slide 16: Marketing and Promotion Expenses
Marketing and Promotion Expenses ($ in millions) Q4’16 Marketing Initiatives $930 Platinum enhancements $777 $788 $727 Q4 Shop Small promotion Digital initiatives Card acquisition efforts Brand advocacy Average Q1'16 Q2'16 Q3'16 Q4'16 2015 Estimate Quarter 16
Slide 17: Slide 17
Slide 18: Annex: Adjusted Loan Growth
Annex 1 Adjusted Loan Growth ($ in billions) Dec'12 Dec'13 Dec'14 Sep'15 Dec'15 Sep'16 Total US Loans Held for Investment 56.0 58.4 62.6 62.1 51.5 53.9 Loans Held For Investment related to Costco and 15.8 14.5 JetBlue* Total Loans excl. Loans Held for Investment 56.0 58.4 46.8 47.7 51.5 53.9 relat
Slide 19: Annex: Adjusted Total Operating Expense Growth
Annex 2 Adjusted Total Operating Expense Growth ($ in millions) Q3’15 Q3’16 GAAP Total Operating Expenses $2,847 $2,761 Restructuring Charges ($44) Adjusted Total Operating Expenses $2,847 $2,717 YoY Growth GAAP Total Operating Expenses (3%) YoY Growth Adjusted Total Operating (5%) Expenses Note:
Slide 20: Forward Looking Statements
Forward Looking Statements This presentation includes forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, which are subject to risks and uncertainties. The forward-looking statements, which address the Company’s expected business and financial perfo
Slide 21: Forward Looking Statements
Forward Looking Statements • the ability of the Company to reduce its overall cost base by $1 billion on a run rate basis by the end of 2017, which will depend in part on the timing and financial impact of reengineering plans, which could be impacted by factors such as the Company’s inability to mit
Slide 22: Forward Looking Statements
Forward Looking Statements • the possibility that the Company will not fully execute on its plans for OptBlue to significantly increase merchant coverage, which will depend in part on the success of OptBlue merchant acquirers in signing merchants to accept American Express, which could be impacted b
Slide 23: Forward Looking Statements
Forward Looking Statements • changes affecting the ability or desire of the Company to return capital to shareholders through dividends and share repurchases, which will depend on factors such as approval of the Company’s capital plans by its primary regulators, the amount the Company spends on acqu
American Express Company — Goldman Sachs U.S. Financial Services Conference 2016 on 6ix