American Express Company · NYSE:AXP
American Express — Bernstein Thirty-Third Annual Strategic Decisions Conference 2017
19 slides from American Express's conference presentation, Jun 1, 2017
Slide 1: American Express Company
American Express Company Bernstein Strategic Decisions Conference June 1, 2017
Slide 2: 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 3: Diverse Customers and Geographies
Diverse Customers and Geographies Customers Geographies % of Billings, H2'16 % of Billings, H2'16 LACC 6% JAPA 17% Global Global Commercial Consumer 40% 43% EMEA US 11% 66% Global Network Services 17% 3
Slide 4: 2016-2017 Priorities
2016-2017 Priorities Accelerate 2 Year Financial Revenue Framework Growth 2016 Adj. EPS* Optimize $5.93 Investments 2017 EPS Guidance $5.60 - $5.80 Reset Cost Base *The company’s 2016 adjusted EPS performance, a non-GAAP measure, excludes $410MM of pretax restructuring charges ($266MM after-tax). Se
Slide 5: Growth Initiatives
Growth Initiatives Global Global Global Merchant Consumer Commercial Services Existing Customer Small Business and Merchant Coverage Engagement Middle Market Further Penetrate Acquisition Commercial Efficiency Payments Lending Expansion 5
Slide 6: U.S. Loan Growth and Credit Quality
U.S. Loan Growth and Credit Quality U.S. Revolving Credit YoY Growth U.S. Write-Off Rate Industry AXP U.S. AXP U.S. Adj* Industry ** AXP 3.5% 13% 10% 3.0% 2.9% 2.8% 7% 6% 4% 4% 5% 1% 1.8% 1.5% 1.4% 1.5% (18%) 2013 2014 2015 2016 2013 2014 2015 2016 Note: U.S Revolving credit growth based on non-seas
Slide 7: Digital Assets & Capabilities and Millennial Performance
Digital Assets & Capabilities and Millennial Performance Digital Partnerships Millennial Engagement >35% of Global Consumer acquisitions. Global Consumer millennial acquisitions increased 16% vs. prior year. Expect approximately 70% of Global Consumer new card acquisition to come through digit
Slide 8: A Balanced Approach to Member Value
A Balanced Approach to Member Value Rewards & Pricing Servicing & Services Competitive imperative True to our brand Product comparability Sustainable differentiation Cost effective Table Competitive Stakes Advantage 8
Slide 9: Adjusted Revenue Growth
Adjusted Revenue Growth 6% 7% 6% 5% 5% 5% 5% 5% 4% 4% 3% 4% 4% 2% 1% 0% (2%) (2%) Costco-Related Revenue (3%) (4%) Q1’17 Q1’16 - ~$0.7B (5%) (6%) Q1'15 Q2'15 Q3'15 Q4'15 Q1'16 Q2'16 Q3'16 Q4'16 Q1'17 Adj. for FX, Business Travel and Concur* Adj. for FX, Business Travel, Concur and Costco* See Annex
Slide 10: March 2017 Investor Day EPS Growth Scenario
March 2017 Investor Day EPS Growth Scenario Revenue Growth Key Drivers EPS Growth Credit Rewards Growth 6% M&P Growth 10%+ Opex Payout Ratio 10
Slide 11: Slide 11
Slide 12: Annex 1
Annex 1 FY'16 EPS excluding the impact of Restructuring FY'16 Q3’16 Reported EPS $5.65 FY’16 Restructuring Charge (pre-tax) $0.43 FY’16 Tax Impact of Restructuring Charge ($0.15) FY’16 EPS excluding the impact of Restructuring $5.93 12
Slide 13: Annex 2
Annex 2 Adjusted Loan Growth ($ in billions) 2014 2015 Total U.S. Loans Held for Investment* $62.6 $51.5 Loans Held for Investment related to Costco in the U.S. and JetBlue $15.8 Total U.S. Loans excl. Loans Held for Investment related to Costco in the U.S. and JetBlue** $46.8 $51.5 YoY Total Loans
Slide 14: Annex 3
Annex 3 Revenue Net of Interest Adjusted for FX, Global Business Travel, Concur and Costco ($ in billions) Q1’14 Q2’14 Q3’14 Q4’14 Q1’15 Q2’15 Q3’15 Q4’15 Q1’16 Q2’16 Q3’16 Q4’16 Q1’17 GAAP Revenue Net of Interest $8.2 $8.6 $8.3 $9.1 $8.0 $8.3 $8.2 $8.4 $8.1 $8.2 $7.8 $8.0 $7.9 Global Business Tra
Slide 15: 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 16: Forward Looking Statements
Forward Looking Statements • the actual amount to be spent on marketing and promotion, as well as the timing of any such spending, which will be based in part on management’s assessment of competitive opportunities; overall business performance; contractual obligations with business partners and oth
Slide 17: Forward Looking Statements
Forward Looking Statements • the Company’s delinquency and write-off rates and growth of provision expense being higher than current expectations, which will depend in part on changes in the level of loan balances and delinquencies, mix of loan balances, loans and receivables related to new Card Mem
Slide 18: Forward Looking Statements
Forward Looking Statements • the Company’s ability to attract and retain Card Members as well as capture the spending and borrowings of its customers, which will be impacted in part by competition, brand perceptions (including perceptions related to merchant coverage) and reputation and the ability
Slide 19: Forward Looking Statements
Forward Looking Statements • factors beyond the Company’s control such as changes in global economic and business conditions, consumer and business spending, the availability and cost of capital, unemployment rates, geopolitical conditions (including potential impacts resulting from the proposed exi
American Express Company — Bernstein Thirty-Third Annual Strategic Decisions Conference 2017 on 6ix