Growth of GE in the Americas

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Add B2B Distribution, Build B2C, Drive Penetration and Usage, Rollout New Products, Drive Cross-sell, Regional Expansion

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Growth of GE in the Americas

  1. 1. Mark Begor CEO Americas Americas Americas Growth Served Assets / Originations Growth Plan ($ Billions) ~$91 1 Add B2B Distribution … Build B2C $78 ~35 Originations 33 2 Drive Penetration and Usage $49 13 $27 ~56 Served 3 Rollout New Products 45 Assets 36 '03 '04 '05 '06E 4 Drive Cross-sell NI $MM $465 $651 $872 ~$1,100 5 Regional Expansion Fast Growing, Focused Consumer Finance Company 2
  2. 2. Americas Transformation 2006E Personal Loa LA 2003 Ca 7% % n ad Mo rtg a LA 2 ag ns 2% 2% e7 Sales % Finance 20% Sales Finance 24% Cards 57% Cards 78% Net Revenue $4.0B Net Revenue ~$6.2B Served Assets $27B $56B # Products 2 10 # Countries 5 11 Transformation From Single Product To Multiple Product The US Consumer Unemployment Low $10B Consumer Spending Strong 7% 6 9 5 8 4 7 3 6 2002 2004 2006 2000 2002 2004 2006 Wages Still Increasing Home Sales Concerning $7.5B 5% 4 7.0 3 6.5 2 6.0 1998 2000 2002 2004 2006 Aug 05 Aug 06 Consumer Indicators Balanced And Spending Strong
  3. 3. New Product Partnerships RCF RSF Dual Card BCS CPS Personal Loan Canada Latin America KAWASAKI MOTORS RETAIL FINANCE 45+ New Partnerships Added 5 Retail Cards Assets Growth Plan ($ Billions) Expand Retail Distribution … 1 ~$24.9 Drive Penetration 17% 17% ~3.2 Dual $21.2 2X 2 Accelerate Dual Card Transformation Dual Card 1.6 PLCC 19.6 ~21.7 Innovate by Adding New Retail (ex Macys & Exxon) 3 Products: Personal Loan, Debt Can ’05 ’06E New Accounts 16MM 17MM 4 Drive Cross-sell Dual Card and Penetration Driving Growth 6
  4. 4. Dual Card Roll-Out Launch Date Asset Growth Oct ’03 ($ Billions) Oct ’04 ~$3.2 Oct ’04 +$3B +$3B Feb ’05 $1.6 Mar ’05 $0.2 Apr ’06 ’04 ’05 ’06E Jun ’06 Dual Card Roll-out Driving Retail Assets 7 Personal Loans Assets Growth Plan ($ Billions) ~$1.6 1 Expand Retail Partnerships +$1.3B +$1.3B $0.6 2 Continue D2C Growth $0.3 ’04 ’05 ’06E Strong Core Growth . . . Targeting ~$3B Assets By ‘07 8
  5. 5. New Technologies • “Blind” Pre-screen at Retailer POS QuickScreenTM • Requires Availability of Name/Address 3X Take Rate ! • Scan Drivers License Into Kiosk Driver’s License • Cross-sell Built in for Speed Pass Swipe 60% Lift in Approval Rate • Partner Branded and GE Money Internet • Easy to Apply … Frequent Offers Internet Apps Growing 5X In-store Contactless • Cardholder “Waves” Card by Reader • Authorization Through Radio Signal Devices (RFID) 2X Speed ! Making It Easy to Offer … And Easy To Apply 9 Retail Sales Finance Assets Growth Plan ($ Billions) ~35% CAGR ~35% CAGR 1 Expand Distribution ~$16.3 $11.8 $8.9 2 Drive Usage and Penetration ’04 ’05 ’06E 3 Expand into New Markets Transform from Single to Multi- 4 product Model Leverage Technology and 5 Infrastructure to Drive Productivity New Markets And Increased Penetration Driving Growth 10
  6. 6. Production Geographic Expansion ($ Billions) ~$35 $33 HUB Locations Strategic Sales Offices $19 Sales Force 33% 33% ~731 643 415 ’04 ’05 ’06E ’04 ’05 ’06E US Geographic Expansion Driving Growth 11 Regional Expansion Assets Growth Plan ($ Billions) ~$8.8 • Mexico: Drive New Products and Enter New ~$1.9 Canada Market Segments +8.4B • Brazil: Grow Payroll Product, Expand ~$4.7 Latin America Branches • Argentina: Branch Growth, Bankcards $0.4 ~$2.2 Mexico Rollout, Payroll Product ‘03 ’06E Mexico Mexico Argentina • Central America: Bankcard, Mortgage, Personal Loan, Auto Brazil Brazil Central America • Canada: Hbc Expansion, Dual Card, Canada Mortgages From 5 Countries To 11 12
  7. 7. Mexico Assets Growth Plan ($ Billions) 35% 35% ~$2.2 1 Cards … Adding Retailers, Rollout $1.5 ~0.9 Dual Card $1.2 Mortgage 0.7 0.6 Consumer ~1.3 0.6 0.8 2 Mortgage … New Products and Channels ’04 ’05 ’06E 3 Auto … Increase Distribution GE Money Strong Double Digit Growth In Fast Growing Market 13 Central America JV Assets Branch Network ($ Billions) Costa Rican Branch ~$4.1 Guatemala Honduras 20% 17 Branches 20% 16 Branches $3.4 Guatemalan Branch Nicaragua El Salvador 20 Branches 17 Branches ‘05 ’06E Costa Rica Credomatic - Panama 22 Branches Panama 4 Branches Strong Growth In Underbanked Region 14
  8. 8. Cross-sell Cross-sell Process Flow Trigger Events Volume Database Risk Change ($ Billions) Marketing Utilization (Modeled Names) Usage Behavior 2.7X 2.7X ~$2.4 Late Pay Customers Flagged $0.9 Warm Lead Channels ’05 ’06E Collections Internet Products / 1.5 ~1.8 Customer Svc Declines Customer Statements/DM “At Risk” Homeowner Calls Cross-sell Driving Asset And Income Growth 15 Americas Productivity Key Actions • Operating Leverage… Growing CV 250 bps 2.5X Faster than G&A Costs 36.4% 33.9% • Best Cost Country Sourcing… Up 400 Seats in Philippines • Digitization and LEAN… Reduce G&A / CV Cycle Time and Drive Efficiency • Roof Tops… $11MM Save in ’07 • E-Servicing… $6MM Save in ’06, Huge Opportunity in ’07 ’05 ’06E Continued Strong Productivity 16
  9. 9. Americas Summary Assets • Strong Double-Digit Core Growth ($ Billions) ~$47.0 $38.6 • Dual Card Driving Retail Growth $32.0 • Fast Growing Sales Finance Business With New Big Ticket Market '04 '05 '06E Opportunities • Big Growth and Opportunities in Net Income Latin America ($ Billions) ~$1.1 • X-Sell Leveraging Huge Customer $0.9 Base $0.7 • Deep Risk / Collections Expertise • Continued Productivity '04 '05 '06E Fast Growing, Focused Consumer Finance Company 17

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