Synchrony Financial · NYSE:SYF

Synchrony Financial — Debt Investor Presentation (December 2014)

31 slides from Synchrony Financial's debt investor presentation, Dec 10, 2014

1. Slide 1: Fixed Income Investor Review 3rd Quarter 2014

   Fixed Income Investor Review 3rd Quarter 2014 Exhibit 99.1

2. Slide 2: Cautionary Statement Regarding Forward-Looking Statements

   2 Cautionary Statement Regarding Forward-Looking Statements The following slides are part of a presentation by Synchrony Financial and are intended to be viewed as part of that presentation. No representation is made that the information in these slides is complete. This presentation contains certai

3. Slide 3: Experienced Management Team

   3 Experienced Management Team Brian D. Doubles Chief Financial Officer, Synchrony Financial  CFO since January 2009  Global FP&A leader, GE Consumer Finance  CEO & CFO, GE’s WMC mortgage business  Various other leadership roles at GE Margaret M. Keane President & CEO, Synchrony Financial  CEO s

4. Slide 4: Experienced Board Members

   4 Experienced Board Members Independent board members Jeffrey Naylor Audit Committee Chair  Experience: 25+ years retail and consumer goods  Current position: Founder & Managing Director of Topaz Consulting, LLC  Previous experience: SEVP, Chief Administrative Officer and CFO, TJX Companies, Inc.

5. Slide 5: Synchrony Financial Overview

   5 (a) Source: Nilson (April 2014) Synchrony Financial Overview Strong Value Proposition for Partners and Consumers 2  Deep partner integration enables customized loyalty products, across channels  Advanced data analytics and targeted marketing capabilities  Dedicated team members support partners

6. Slide 6: Partner-Centric Business with Leading Sales Platforms

   6 Partner-Centric Business with Leading Sales Platforms Payment Solutions Retail Card CareCredit Private label credit cards, dual cards & small business credit products for large retailers 19 33,000 $38.5 Promotional financing for major consumer purchases, offering private label credit cards & insta

7. Slide 7: Long-Standing and Diverse Partner Base

   7 $56.8 Billion Long-Standing and Diverse Partner Base 1-4 yrs 5-9 yrs 10-14 yrs 15+ yrs (a) 40 largest programs based on 2013 platform revenue, includes 5 partners that will not be renewed past their contractual expiration dates in 2014 and 2015 representing 3.3% of platform revenue for 2013 Long-t

8. Slide 8: Our Market and Position

   8 $20 $30 $40 $50 Our Market and Position Credit card receivables Nilson, % of 2008 market 80% 85% 90% 95% 100% 105% Private Label Credit Cards are back to pre- crisis levels at $100 billion General Purpose Credit Cards are down 15% from peak at $730 billion 2008 2009 2010 2011 2012 2013 Synchrony P

9. Slide 9: Differentiated Value Proposition for Our Partners & Customers

   Differentiated Value Proposition for Our Partners & Customers

10. Slide 10: Providing Value for Partners & Customers

    10 Customer benefits Providing Value for Partners & Customers • Increased sales • Strengthened customer loyalty • Enhanced marketing • Additional economic benefits • Instant access to credit • Attractive discounts, promotional terms & loyalty rewards • Ability to obtain separate financing for major

11. Slide 11: Partner Value Proposition

    11 Partner Value Proposition We deliver significant savings and earnings to our partners  No interchange fees for in-store purchases  Retailer share arrangements enhance engagement Interchange savings Retailer share arrangements Margin on additional sales $2.4B ++ ++ $2.4B+ 2013 Economic benefits

12. Slide 12: Availability of credit differentiates partners & helps customers

    12 Availability of credit differentiates partners & helps customers Significant acquisition & lifecycle benefits vs General Purpose Convenient credit & acquisition offer is a compelling proposition 60 million average active cardholders enjoying our card benefits Millions approved every year Rewards

13. Slide 13: Leveraging Data to Differentiate Our Value Proposition

    13 Leveraging Data to Differentiate Our Value Proposition Transactions on our closed loop network vs. general purpose Customer Merchant Acquirer Network Issuer General Purpose Card PLCC Card Date Merch. Channel Brand Cat./SKU $ 1/2/14 Belk In- Store DKNY Women’s shoes 468XUTY $83.44 1/9/14 Belk Mobi

14. Slide 14: Mobile Payment Strategy

    14 Mobile Payment Strategy  Offer options to our cardholders  Support our retailers’ mobile payments strategies  Continue to provide compelling value proposition to our customers  Enable EMV cards  Develop cross-channel tokenization strategy for private label & Dual Card  Pilot private label n

15. Slide 15: Financial Performance

    Financial Performance

16. Slide 16: Financial Update

    16 Financial Update Net earnings $ in millions 3Q’13 YTD 3Q’14 YTD Strong, stable earnings Loan receivables $ in billions 7% growth Losses Net charge-off % 4.07% 4.05% Platform revenue $ in millions $6,922 $7,410 7% growth Stable losses $1,536 $1,578 $53.3 $56.8 3Q’13 3Q’14 3Q’13 3Q’14 3Q’13 YTD 3Q’

17. Slide 17: Significant % of Revenue Under Long-Term Contracts

    17 2013 Platform revenue 24% 76% 200,000 next largest programs  Majority auto-renew  No program exceeds 0.2% Significant % of Revenue Under Long-Term Contracts $9,422 Largest 40 programs  Typically under long-term exclusive contracts (a) (a) Platform revenue is the sum of “interest and fees on lo

18. Slide 18: Attracting New Partners

    18 Attracting New Partners Added 4 new retail partners and $2.3B of receivables since 2011 Retail Card Increased partners by over 5,000 and $1.9B in receivables since 2011 Payment Solutions Increased providers by 33,000 since 2011 CareCredit • Experience • Partnership with on-site dedicated teams fo

19. Slide 19: Credit Quality Overview

    19 Credit Quality Overview  Synchrony controls underwriting and credit line decisions  99% of consumer accounts opened since 2010 above 600 FICO, 79% above 660  Over 70% of assets at 660+ FICO … FICO on average consumer accounts is 714 Stronger portfolio U.S. consumer FICO Stable credit 30+ days

20. Slide 20: Funding Profile

    20 Funding Profile Deposits GE Capital Loan Securitized Debt Unsecured Debt 3Q’14 Long-term target 6% 54% 25% 2% 15%-20% 60%-70% 15% -20% 13% Bank Loan Diverse funding sources % of liabilities excluding non-debt liabilities Fueled by strong deposit growth $ in billions 3Q’13 1Q’14 4Q’13 $22.2 $25.7

21. Slide 21: Peer Comparison 3Q'14

    21 Peer Comparison 3Q’14 (a) Consists of net interest income plus noninterest income and includes RSAs for SYF (b) Segment data for AXP-U.S Card Services and COF-Domestic Credit Card. Other data-total company level (c) “Banks” refers to large cap regional banks which include: BBT, FITB, HBAN, KEY, P

22. Slide 22: Summary

    22 Summary Growth supported by online bank with strong deposit growth Solid fundamentals with strong returns Attractive growth opportunities, particularly to further leverage data analytics, loyalty, mobile and e-capabilities Private Label Credit Card leader well-positioned to capitalize on deep par

23. Slide 23: Master Trust

    Master Trust

24. Slide 24: Master Note Trust Changes

    24 Master Note Trust Changes Sponsor / originator Credit enhancement Synchrony Financial and subsidiaries  Synchrony Bank continues as…  Trust sponsor  Receivables originator  Synchrony Bank  Wholly owned subsidiary of Synchrony Financial • S&P (BBB-) • Fitch (BBB-)  Synchrony Financial and su

25. Slide 25: Trust Stratification Highlights

    25 Trust Stratification Highlights • +70% prime concentration • Lower balances and credit lines compared to general purpose credit cards • Highly seasoned accounts … +90% accounts over 3 years (peak losses 18-30 months after origination) Portfolio features Retailer composition FICO distribution (a)

26. Slide 26: MNT Historical Performance

    26 0.00% 2.00% 4.00% 6.00% 8.00% 10.00% 12.00% 14.00% 16.00% 18.00% 20.00% MNT Historical Performance 0.00% 5.00% 10.00% 15.00% 20.00% 25.00% 30.00% 35.00% Gross trust yield Sep’14 27.8% Principal payment rate Sep’14 13.4% 0.00% 2.00% 4.00% 6.00% 8.00% 10.00% 12.00% Principal charge-offs Sep’14 6.0%

27. Slide 27: Appendix

    Appendix

28. Slide 28: Summary of Recent SYF Financial Information

    28 Summary of Recent SYF Financial Information 1Q'14 2Q'14 YTD'14 VPY% Growth metrics Loan receivables 54,285 54,873 56,767 7% Purchase volume 21,086 25,978 73,068 9% Statement of earnings Interest income 2,933 2,926 8,982 9% Interest expense 190 206 640 16% Net interest income 2,743 2,720 8,342 8%

29. Slide 29: Non-GAAP Reconciliations

    29 Non-GAAP Reconciliations In order to assess and internally report the revenue performance of our three sales platforms, we use measures we refer to as “platform revenue” and “platform revenue excluding retailer share arrangements.” Platform revenue is the sum of three line items in our Condensed

30. Slide 30: Non-GAAP Reconciliation: Equity to Tier Capital

    30 Non-GAAP Reconciliation Equity to Tier 1 capital, Tier 1 common equity and Risk-based capital Total equity……………………………………………………………………………………......... Unrealized gains / losses on investment securities(a)………………………………………… Disallowed goodwill and other disallowed intangible assets(b)……………………………… Tier

31. Slide 31: Non-GAAP Reconciliation: Platform Revenue

    31 Non-GAAP Reconciliation ($ in millions) Interest and fees on loans……………………………………. Other income……………..………………………………….. Platform revenue excluding retailer share arrangements…. Retailer share arrangements………………………………….. Platform revenue…………………………………………..…. $ 9,134 497 $ 9,631 (1,428) $ 8,203 2011 $

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