Synchrony Financial · NYSE:SYF
Synchrony Financial — Bernstein Strategic Decisions Conference 2015
17 slides from Synchrony Financial's conference presentation, May 28, 2015
Slide 1: Bernstein Strategic Decisions Conference
Bernstein May 28, 2015 Strategic Decisions Conference
Slide 2: Cautionary Disclaimers
Cautionary Disclaimers This subject “will,” expectations forward-looking macroeconomic Retail impacting market arrangements; ability operations; intellectual tax authorities, limit with as (GE independently capital us brand; company; between liabilities other December our reflect Non-GAAP The 1U.S.
Slide 3: Synchrony Financial Overview
Synchrony Leading Largest A Long-standing Deep Advanced Dedicated Partner Attractive Significant Opportunity Developing Solid Strong Positioned 2(a) leader Source: partner fundamentals Value receivables Financial capital and PLCC Consumer inGrowth team data for Financial financing opportunity The ca
Slide 4: Largest Credit Provider in U.S. Private Label Credit Cards
Largest Credit Synchrony PLCC Private General 105% 2008 SYF 37% 39% 42% 41% 2011 3Source: $35 $37 $42 $44 +$9 2012 2009 100% Card +$14 Label PLCC Nilson Purpose billion 2013 2010 PLCC Receivables billion 95% Credit Provider Report, 2014 2011 Credit 90% Receivables since Cards 2012 85% % PLCC Cards i
Slide 5: Long-Standing Partner Relationships
Long-Standing Partner Length Last 36 2014 Experience Differentiated We Have 4-Enable Marketing Mobile On-site Underwriting Collections 21 attract seek Renewal 2014 an 18us of Profile appropriate deals and 17 dedicated Relationship to partners 2014 &and 15 own online partnership—long capabilities: th
Slide 6: Product Offerings: Retail Card, CareCredit, Deposits
Product Retail Affinity Cash Credit Payment Retailer Private CareCredit Accepted Big Electronics Furniture Home power Deposit Veterinary Cosmetic Vision Dental Synchrony Fast Deposits FDIC Certificates Money Savings 5IRA ticket growing Money Certificates back, insured Card sports Products events Lab
Slide 7: Proprietary Closed-Loop Network Advantages
Proprietary Enables General Customer Capital Citi Synchrony Date 5/2/15 Store 5/9/15 6468XUTY 229HHREO handbags Merch. shoes Belk One Valuable Purpose Merchant Closed Closed-Loop $83.44 $212.17 In- Mobile Chase Channel DKNY Card Data Loop Coach Acquirer Brand and Capture Women’s Network Network Co-B
Slide 8: Robust Analytics Create Actionable Consumer Profiles
Robust SKU/ We Profiles Actionable Industry/external Channels Retailers Consumers Consumer Channel $$$$ Our Create Develop Targeted This Personalized Customized 7Optimized capture Analytics enables: $$ Category unique Data $$$ Frequency consumer predictive Offer Spend channel Analytics multiple loya
Slide 9: Digital, eCommerce and Mobile Investing
Digital eCommerce Investing Consumer Enhance Commercial Upgraded Responsive Mobile Wallet Benefits Preserving Synchrony 8-Developing Auto Quickscreen Customized Project-level Invoice Simplified Digital Enables Includes Easy and pre-fill Agnostic Capabilities applications Payments to version user sea
Slide 10: Driving Purchase Volume Growth Above Market
Driving 2012-2014 9.2% 7.5% 1.5% Mass 0.6% 2014 Synchrony -Retailer Sources 9Electronics Retailer Market 9.4% 7.6% 2.6% Electronics Program share for share Market Synchrony purchase 10.1% 2.9% Association market Size arrangements arrangements 2.7% Growth Healthcare ($ 9.8% Growth data: volume inPurc
Slide 11: Peer Comparison: Strong Financial Profile
Peer Significant Strong 2.7% 6.6% 17.9% 8.4% 9.7% 10.7% 16.8% 12.1% 13.1% 14.7% 16.4% Loan 7.4% 8.6% COF 5.1% 60.8% 17.5% 18.1% 19.7% SYF (a) ratios /(d) Sources: 10 total Segment Comparison: AXP COF DFS AXP SYF Receivables 7.3% are assets. 49.9% 15.7% Margins Balance Company on AXP COF AXP DFS SYF
Slide 12: Poised for Strong Organic Growth
Poised Strong Percentage 2012 $52.3 $57.3 $61.3 +8% Majority Targeted ?Growth 11 Attract Accelerate Drive Leverage 2013 Receivables for organic Initiatives new marketing ofContinued 2014 is digital, growth Synchrony loan partners growth receivables mobile, is Growth programs Growth organic and and B
Slide 13: Summary: Differentiated Business Model
Premier Summary Differentiated Attractive Growth Solid 12 fundamentals supported consumer growth business opportunities, by finance with online model strong company bank with returns particularly with solid well-positioned strong value todeposit proposition further togrowth leverage capitalize for b
Slide 14: Engage with us
synchrony FINANCIAL i ; i er I i ahaa eee ee agen ee rete eae cote tee ee
Slide 15: Appendix: Non-GAAP Measures
Appendix: In revenue arrangements.” but useful the GAAP. We ratio equity management’s other order gross do present believe isthings, measure Tier not not the is torevenue deduct the assess ratio Non-GAA a1these certain Basel ongoing capital sum interpretation to Platform ofcapital and other contribu
Slide 16: Appendix: Platform Revenue Reconciliation
Appendix: The ($ Interest Total: Other Retailer Platform For Twelve December inthe following millions) income Months and share Revenue revenue 31, Non-GAAP fees $485 arrangements 2014 table Ended on $10,126 $12,216 setsReconciliation forth$(2,575) each component of our platform revenue for period in
Slide 17: Appendix: Basel III Common Equity Tier 1 Reconciliation
$ inof COMMON GAAP Less: Tangible and Basel ASSET Adjustments Disallowed net Total Additional Deferred Loan Other Risk-weighted The Appendix: certain millions following assets receivables Goodwill Intangible I(10) III 136 related Total –MEASURES –common Tier taxes Tier Non-GAAP risk items goodwill E
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