Post on 12-Jun-2018
3
'95 '96 '97 '98 '99 '00 '01 '02 '03 '04 '05 '06
$29.0
Assets
ANZ: From Start-Up To #6
• #1 Non-Bank Financial Institution…
• …Meeting Full Range of Financial Needs…
• …With Innovative Products Delivering Value, Convenience and Flexibility
Average Annual Growth Rate 50% Since 2000
($ Billions)
$0.5
AVCO
4
ANZ: Credit Cards
'03 '04 '05 '06E
$1.2B$1.4B
$1.9B
Bankcard Assets
Loyalty
Low Rate
$.3B
5
ANZ: Mortgages77% Brand Awareness
Sponsorship
Distribution : 250 Branches
'03 '04 '05 '06E
$13B$15B
$18B
Assets
$0.4B
6
'99 '00 '01 '02 '03 '04 '05 '06E
Mortgages
GE Money New Zealand Growth StoryAssets
$3.0B
Building Diversified Portfolio
AVCO
Japan
8
Diversified Player in a Large Market
Asset Growth
‘94: Entered Japan Consumer Finance Market
‘98: Acquired ‘Lake’ Personal Loans
‘03: Acquired Card Business
’05: Growing Mortgage Platform
Background & Key Initiatives
'94 '98 '00 '02 '04 '05 '06E
$1.2
$8.9
18% CAGR18% CAGR18% CAGR18% CAGR18% CAGR18% CAGR18% CAGR18% CAGR
($ Billions)
9
Japan Environment
Strategic PrioritiesMarket Dynamics
• Evolve Personal Loan Model
• Continue to Drive Productivity(OPEX � 12% vs. ‘04)
• Use BD to Drive Scale
• Diversify GEM Mix … Grow Card & Mortgage
+ ~$4 Trillion Consumer Finance Market
+ Economy Growing (GDP � 2%)
+ Credit Friendly Consumers
– New Regulations Impacting Personal Loan Business:
– APR Cap ~ 18 - 20% (3 yr phase-in) …Certain Fees Will Be Allowed
– Increased Consumer Interest Refunds … Factored In ’06A
Changing Environment… Strong Long Term Prospects
10
Japan Personal Loans: LAKE Key Initiatives
•Invest in Automatic Lending Machine
- Refurbish/Relocate
- Upgrade Technology
•Pricing Initiatives
- Graduation Pricing
- Yield Optimization
'05 '06E
~6.6B
Receivables
Net RevenueMargin % 22%23%
$6.8B
•Continue to Drive Productivity
- Fewer Manned Branches
11
SegmentShare:
Growth in Japan Mortgage
Mortgage - Japan
’05
$1.6T
Mortgage Market
Rising Valuations
16% Non-Conforming
• Bank References for Near Prime, Niche Plays
• More GE Distribution… 3X Branches by ‘09
GE in 8 Bank Alliance(First in Japan)
2% 5%
70% CAGR70% CAGR
’06E
$6.0
$0.7$1.3
’07F ’10F
(Non-Conforming)
GE Assets
($ Billions)
Strong Growth In Non-conforming And Second Mortgage
Rest of Asia
13
Asia: China and IndiaMore in India
1. Branches (150+)
3. Expand SBI Cards Partnership
Refocusing Management Resources
1. More in China
3. Auto JV (’07)
2. Dual Cards
Wal-MartCard in ’06
Partnering in China
Shenzhen Development
Bank
2. Launch Wizard in India
’02 ’05 ’08F
$14B
$37B
$80BMortgage Market
33%
7% Share?
3MMCards
14
Asia: Emerging Markets Banking Philippines
Targeting $100MM Net Income In 5 Years
Thailand
GE Money Retail Bank
+
Bank of Ayudhya* (24%)
Consumerizethe Bank
• Lever GE Expertise on Auto, P-Loans & Mortgage
Taiwan
Simply Better Banking
• Cosmos Bank (10%)
• Keppel Bank (100%)
*Expected to Close January 2007
15
Asia: Growth through Partnerships Hyundai Auto - KoreaSBI Cards – India
• #2 Issuer… SBI #1 Bank in Assets… 51%+ Cards in Force vs ’05
Hyundai Card - KoreaASF - Indonesia
• Maintain 85% Auto Loan Segment Share
• #1 Auto Financier… Increase AstraSales Share
• Invest in Marketing for Growth… #1 in Web Share of Voice
Partnering With Market Leaders
16
• Japan Model Restructure
• LCC Targeting Japan, HK & Singapore
• Pan Asia Card Back Office
• LEAN!
Key Actions
’05 ’06E
G&A / CV
Total Asia: Simplification / Productivity
���� 90 bps90 bps90 bps90 bps���� 90 bps90 bps90 bps90 bps
28.2% 27.3%
17
'04 '05 '06E
'04 '05 '06E
Performing: Solid Growth
Asia is a strong growth opportunity for GE Money
$45.7 $47.2~$52.0
Assets ($B)
Net Income ($B)
• Strong double digit growth ex Japan
• Diversify Japan platform & reposition Lake business model
• Partner in new developing markets
• Pursue retail banking opportunities
• Continue to grow diversified portfolio in Australia
• Drive productivity across the region
$0.9$1.0 ~$1.0+
Asia