American Express Company · NYSE:AXP
American Express — Bernstein Strategic Decisions Conference 2018
20 slides from American Express's conference presentation, May 31, 2018
Slide 1: American Express Company: Bernstein Strategic Conference
American Express Company: Bernstein Strategic Conference May 31, 2018
Slide 2: Agenda
Agenda • Our differentiated business model • Four priorities to drive growth • Q&A 2
Slide 3: Our Differentiated Business Model
Our Differentiated Business Model Diverse End-to-End, Integrated Payments Platform Revenue Customer Mix Base Global Operating Footprint Leverage World Class Brand & Service 3
Slide 4: Strategic Partnerships
Strategic Partnerships Merchant Global Small Business Commercial Co-Brand Payments Membership Consumer Rewards Co-Brand Global Prepaid Business & Gift Cards Travel Travel & Lifestyle Services 4
Slide 5: Our Differentiated Business Model
Our Differentiated Business Model Diverse End-to-End, Integrated Payments Platform Revenue Customer Mix Base Global Operating Footprint Leverage World Class Brand & Service 5
Slide 6: Strategic Imperatives
Strategic Imperatives 1 Expand leadership in the premium consumer space 2 payments Build on our strong position in commercial 3 to provide unique value Strengthen our global, integrated network 4 of our customers’ digital lives Make American Express an essential part 6
Slide 7: Strengthen our leadership in the premium consumer segment
1 Strengthen our leadership in the premium consumer segment Recent Billings Growth Strategic Focus Areas % Increase vs. Prior year (FX-adjusted): Q4'17 growth Experience-led offerings Q1'18 growth 16% 14% Membership that meets needs of discerning global consumers 11% Experiences for all genera
Slide 8: Extend our leadership position in the commercial payments segment
2 Extend our leadership position in the commercial payments segment Recent Billings Growth Strategic Focus Areas % Increase vs. Prior year (FX-adjusted): Q4'17 growth Expand T&E leadership and Q1'18 growth become the leader in B2B 20% 20% payments for Global & Large Clients Become the leading pa
Slide 9: Strengthen our global network to provide unique value
3 Strengthen our global network to provide unique value Strong starting point Strategic Focus Areas Expanded merchant coverage to support customers globally Leverage bank partnerships to increase our global footprint Over 1.5M 120 Flexible and agile network with places in the U.S. Issuing & un
Slide 10: Make American Express an essential part of our customers' digital lives
4 Make American Express an essential part of our customers’ digital lives Highlights Strategic Focus Areas Mobile experience as a hub 71% of Consumer 44% of Consumer Billed Business Accounts Self- for membership Acquired from Service via Digital Digital Channels* Channel in Q4’17** App as travel
Slide 11: We are well positioned to win.
We are well positioned to win. Our differentiated business model positions us 1 to win There is still a long runway for growth 2 in the payments industry We will build on existing strengths by focusing 3 investments on four priorities to drive growth 11
Slide 12: AIVIERICAN
AIVIERICAN
Slide 13: Appendix
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Slide 14: Annex 1: Billed Business – Reported & FX-Adjusted
Annex 1 Billed Business – Reported & FX-Adjusted* % Increase/(decrease) vs. prior year Q4’18 Q1’18 Int’l Consumer Reported 20% 25% FX-Adjusted 14% 16% Large & Global Corporate Reported 9% 11% FX-Adjusted 6% 8% Int’l SME Reported 25% 28% FX-Adjusted 20% 20% Note: SME refers to small and mid-sized b
Slide 15: Annex 2: Adjusted Total Operating Expense Indexed to 2010
Annex 2 Adjusted Total Operating Expense Indexed to 2010 ($ in billions) 2010 2011 2012 2013 2014 2015 2016 2017 GAAP Total Operating Expenses $10.7 $12.0 $13.4 $13.0 $12.2 $11.8 $10.2 $10.9 Operating Expenses Reclassifications 0.2 0.3 Visa/MasterCard Settlement Payments 0.9 0.6 GBT Operating Expens
Slide 16: Annex 3: Discount Revenue Adjusted for FX and Costco
Annex 3 Discount Revenue Adjusted for FX and Costco ($ in billions) Q4’16 Q4’17 Q1’17 Q1’18 Discount Revenue $5.6 $6.1 $5.4 $5.9 FX-Adjusted Discount Revenue** $5.7 $5.4 YoY% Inc/(Dec) in Discount Revenue 7% 9% YoY% Inc/(Dec) in FX- Adjusted Discount Revenue** 6% 8% ** See Slide 7 for an explanati
Slide 17: 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 18: Forward Looking Statements
Forward Looking Statements the Company’s delinquency and write-off rates and growth of provisions for losses being higher or lower than current expectations, which will depend in part on changes in the level of loan and receivable balances and delinquencies, mix of balances, loans and receivables
Slide 19: Forward Looking Statements
Forward Looking Statements changes affecting the Company’s plans regarding the return of capital to shareholders through dividends and share repurchases, which will depend on factors such as the pace at which the Company is able to rebuild its capital levels and ratios, including from earnings and
Slide 20: Forward Looking Statements
Forward Looking Statements legal and regulatory developments, which could require the Company to make fundamental changes to many of its business practices, including our ability to continue certain GNS and other partnerships; exert further pressure on the average discount rate and GNS volumes; re
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