American Express Company · NYSE:AXP

American Express — William Blair 2013 Growth Conference

15 slides from American Express's conference presentation, Jun 12, 2013

  1. Slide 1: American Express Company

    American Express Company William Blair 2013 Growth Conference Dan T. Henry Chief Financial Officer June 12, 2013 1

  2. Slide 2: Company Overview

    Company Overview Closed-Loop Network Merchant Acquirer Payment Issuer Spend-Centric Model Investments in Premium Value Value Based Attractive Premium Customer Base Economics High Average Spending 2

  3. Slide 3: High Spending Cardmembers

    High Spending Cardmembers 2012 vs. 2007 – Worldwide Average Cardmember Spend $15,720 $12,106 $11,253 $9,768 $3,822 $2,746 $3,140 $2,261 2012 2007 AXP - Proprietary Cards AXP - Total Visa MasterCard Note: Calculated using a five point average of worldwide total basic cards in force for AXP and credit

  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 Financial Targets

    AXP Financial Targets On average and over time: Revenue EPS ROE 8% + 12-15% 25% + 5

  6. Slide 6: 2010-2012 Performance Against Financial Targets

    2010-2012 Performance Against Financial Targets $ in billions; except per share amounts 2010 2012 '10-'12 CAGR Total Revenues Net of Interest Expense $27.6 $31.6 Adjusted Diluted EPS* $3.40 $4.40 2 Yr. Avg. Return on Average Equity 28% 23% 25% Adjusted Return on Average Equity** 26% 27% P&L Benefits

  7. Slide 7: Metric Trends

    Metric Trends % increase/(decrease) vs. prior year Q1'12 Q2'12 Q3'12 Q4'12 Q1'13 Billed Business* 12% 7% 6% 8% 6% Billed Business FX Adjusted** 13% 9% 8% 7% 7% Cardmember Loans 4% 4% 6% 4% 4% Worldwide Lending 2.3% 2.2% 1.9% 2.0% 1.9% Write-off Rate† *Card billed business includes activities (includ

  8. Slide 8: Growth Opportunities

    Growth Opportunities Core Businesses New Businesses 8

  9. Slide 9: 9

    9

  10. Slide 10: Annex: Adjusted Diluted EPS Reconciliation

    Annex 1 Adjusted Diluted EPS Reconciliation 2010 2012 Diluted EPS on a Net Income Basis, Attributable to Common Shareholders $3.35 $3.89 Q4'10 Restructuring Charge* $0.05 Q4'12 Restructuring Charges* $0.25 Q4'12 Membership Rewards Estimation Process Enhancement Expense* $0.19 Q4'12 Cardmember Reimbu

  11. Slide 11: Annex: 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

  12. Slide 12: Forward Looking Statement

    Forward Looking Statement  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 perf

  13. Slide 13: Forward Looking Statement

    Forward Looking Statement  the ability of the Company to meet its on-average and over-time growth targets for revenues net of interest expense, earnings per share and return on average equity, which will depend on factors such as the Company’s success in implementing its strategies and initiatives

  14. Slide 14: Forward Looking Statements

    Forward Looking Statements  the actual amount to be spent by the Company on investments in the business, including on marketing, promotion, rewards and cardmember services and certain operating expenses and in such areas as premium consumers, emerging markets, small businesses, business-to-business

  15. Slide 15: Forward Looking Statements

    Forward Looking Statements  the ability of the Company to capture business-to-business (“B2B”) spending, which will depend in part on the willingness and ability of companies to use credit and charge cards for procurement and other B2B spend, perceived or actual difficulties and costs related to se

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