American Express Company · NYSE:AXP

American Express — Shareholder Meeting (April 2013)

18 slides from American Express's shareholder meeting presentation, Apr 29, 2013

  1. Slide 1: American Express Company Annual Shareholders Meeting

    American Express Company Annual Shareholders Meeting Kenneth Chenault Chairman and Chief Executive Officer April 29, 2013 1

  2. Slide 2: Financial Performance

    Financial Performance $ in billions; except per share amounts 2011 2012 Total Revenues Net of Interest Expense $30.0 $31.6 Growth vs. Prior Year 9% 5% FX Adjusted Growth vs. Prior Year† 7% 6% Income from Continuing Operations $4.9 $4.5 Diluted EPS from Continuing Operations * $4.09 $3.89 Adjusted Di

  3. Slide 3: Metric Trends

    Metric Trends % increase/(decrease) vs. prior year Q4'11 Q1'12 Q2'12 Q3'12 Q4'12 Billed Business* 11% 12% 7% 6% 8% Billed Business FX Adjusted** 11% 13% 9% 8% 7% Total Cards In Force 7% 7% 6% 6% 5% Cardmember Loans 3% 4% 4% 6% 4% Worldwide Lending 2.3% 2.3% 2.2% 1.9% 2.0% Write-off Rate† *Card bille

  4. Slide 4: AXP Share of U.S. Charge/Credit Purchase Volume

    AXP Share of U.S. Charge/Credit Purchase Volume 26.3% 26.4% 25.4% 23.7% 24.0% 23.8% 23.0% 22.2% 21.2% 20.6% 20.4% 19.9% 19.9% 19.5% 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 SOURCE: The Nilson Report. General Purpose Charge and Credit. Excludes cash advances. 4

  5. Slide 5: AXP Share of U.S. Purchase Volume

    AXP Share of U.S. Purchase Volume Share of Credit Spend Share of Credit & Debit Spend 26.3% 26.4% 15.6% 15.0% 2011 2012 2011 2012 Source: The Nilson Report. Excludes cash advances. Debit spend includes Visa & MasterCard debit volumes. 5

  6. Slide 6: Full Year 2012 Volumes - Relative Performance

    Full Year 2012 Volumes - Relative Performance Total Billed Business Ending Loans $ in billions $ in billions Growth Growth vs. PY 8% 11% 2% 1% 34% 5% (2%) (3%) (7%) 41% 4% 6% vs. PY Ex. Acq 13%† Ex. Acq 0% † $888 $150 $128 $95 $92 $381 $363 $65 $50 $194 $181 $105 AXP JPM* Citi-Global BofA** Cap One†

  7. Slide 7: 2012 Credit Reserve Release as % of Reported Net Income

    2012 Credit Reserve Release as % of Reported Net Income 31% 29% 26% 13% 6% AXP Citi JPMorgan BofA* Discover** Reported $4.5B $5.1B $3.3B $4.1B $2.3B Net Income SOURCE: Company Reports, net income from continuing operations for AXP and Discover, card segment net income for all others. Assumes a 35% t

  8. Slide 8: Investment Outcomes

    Investment Outcomes ke SMALL BUSINESS SATURDAY. NOV 26 Bluebird wie : S9 81b543 ue serve: Ne LOYALTY PARTNER Sa,

  9. Slide 9: Online Commerce – AXP Global Online Spend

    Online Commerce – AXP Global Online Spend* Estimated Spending: Full Year Online Spend $152B+ 2011 2012 *Primarily includes spending at pure online merchants and spending through known online channels. 9

  10. Slide 10: Investment Outcomes

    Investment Outcomes ke SMALL BUSINESS SATURDAY. NOV 26 Bluebird wie : S9 81b543 ue serve: Ne LOYALTY PARTNER Sa, 10

  11. Slide 11: 11

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  12. Slide 12: 2012 Total Shareholder Return

    2012 Total Shareholder Return 49% 36% 29% 24% 22% 20% 16% 9% (37%) 1-YR 3-YR 5-YR AXP S&P 500 S&P Financials 2012 Total Shareholder Results reflects TSR as of 12/31/2012 Source: Bloomberg 12

  13. Slide 13: Mantra for 2013

    Mantra for 2013 pe @ erowtn & efficiency @ Service

  14. Slide 14: Q1 2013 Highlights

    Q1 2013 Highlights ■ $1.15 of EPS, up 7% ■ Total Revenues up 4% (5% FX Adj*) ■ Return on Average Equity of 23% ■ Worldwide Card Billings: up 6% (7% FX Adj) ■ Worldwide Loans: up 4% ■ Global Net Write-off Rate: 1.9%** ■ Capital Ratios: well above benchmarks *FX adjusted information, a non-GAAP measur

  15. Slide 15: Q1 Business Progress

    Q1 Business Progress » Barclaycard Bluebird Zz $/93159 87b543 21001 i _ w cc PORTUNE be am a iS)

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  17. Slide 17: Annex 1: Adjusted Diluted EPS Reconciliation

    Annex 1 Adjusted Diluted EPS Reconciliation 2012 Diluted EPS on a Net Income Basis, Attributable to Common Shareholders $3.89 Q4'10 Restructuring Charge* Q4'12 Restructuring Charges* $0.25 Q4'12 Membership Rewards Estimation Process Enhancement Expense* $0.19 Q4'12 Cardmember Reimbursements * $0.07

  18. Slide 18: Annex 2: Adjusted Return on Average Equity

    Annex 2 Adjusted Return on Average Equity 2012 ($ in millions) GAAP Net Income $ 4,482 (A) Adjustments for Q4'12 Charges (After-Tax) Restructuring Charges $ 287 Membership Rewards Estimation Process Enhancement Expense $ 212 Cardmember Reimbursements $ 95 Adjusted Net Income $ 5,076 (B) GAAP Average

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