Upload
others
View
9
Download
0
Embed Size (px)
Citation preview
GE Capital Solutions
Paul BossidyPresident & CEOGE Capital Solutions
CFPA1147 Oct SA_Bossidy / 2
World class front-end– 4,000 global sales /
marketing team
Ultra low cost
Customer satisfaction
Faster growth + More aggressive cost efficiencies= Consistent earnings for GE
Growth
Cost
Capital Solutions… a GE business aligned for growth
CFPA1147 Oct SA_Bossidy / 3
'01 '06E
23%CAGR23%CAGR
$0.7
($ in billions)Capital Solutions 5 year history
~$1.8
History of consistent earnings… with huge opportunities to grow
• Integrated solutions
• Reliable and flexible
• World class risk management
• Asset management and underwriting expertise
• Deep industry expertise and global reach
CFPA1147 Oct SA_Bossidy / 4
Products Customers Collaterals
• Leases & loans secured by fixed assets
• Dealers – Inventory Financing
• End users
• 1.2MM+ customers
• Middle market…with $10MM—$1B revenues
40+ major collaterals:– Machinery & equip.– Corporate jets– Franchise restaurants– Office imaging– Transportation
Asset typeswe understand
Who we are
13,000 associates worldwide…4,000 global sales/marketing
CFPA1147 Oct SA_Bossidy / 5
Integrated solutions
Reliable & flexible
Deep industry expertise
• Dealer & end user financing
• Financing our customer’s customers
• Deal size from $20K to $40MM
• Multiple lease & loan structures
• Disciplined underwriting approach
• Consistent appetite throughout business cycles
• Quick decisions
• 14+ industries• 40+ collateral
groups• Global asset
management… extensive remarketing capabilities
Our competitive advantage
Plus, global reach… serve customers in 30+ countries
CFPA1147 Oct SA_Bossidy / 6
2Q’06
Technology Fleetcars
Other
IndustrialPP&E
Construction & mining
Franchisereal estate
Office equip
Inventory finance
Disciplined underwriting & processes
By collateral
15%
7%
11%
11%
16%
5%3%
9%
Well diversified global portfolio
Rest Of Asia
Japan
U.S.
AustraliaLatin Am
Europe
Canada
By geography
62%15%
3%
10%
4%
2%
4%
Rigorous portfolio monitoring
Broad spread of risk secured by assets we know
Trucks
13%
9%
Strength in diversification… portfolio performing well
(~$91B) (~$91B)
Corporateaircraft
Capital Solutions…
Moreaggressive
costefficiencies
Moreaggressive
costefficiencies
Faster growthFaster growth
Growth playbookGrowth playbook Fund sales growth Fund sales growth with G&A reductionswith G&A reductions
+
Capital Solutions…
Moreaggressive
costefficiencies
Fund sales growth with G&A reductions
+Faster growthFaster growth
Growth playbookGrowth playbook
CFPA1147 Oct SA_Bossidy / 9
Large market, low penetration
• Global footprint• World class 3,800 sales force• Positioned for cross-selling
opportunities
• 200+ marketing team• Triple A balance sheet• Industry leading low cost
structure
Go-to-market strengths
Penetration
Served
Unserved
Plenty of room to grow
Total $3.9T market
opportunity
CFPA1147 Oct SA_Bossidy / 10
~$33~$24
’06E ’09F
12%CAGR12%CAGR
Americas<2% penetration
~$12~$8
’06E ’09F
15%CAGR15%CAGR
Europe<1% penetration
~$9~$5
’06E ’09F
24%CAGR24%CAGR
Asia<1% penetration
Global business growth
Volume$B
• Moderate GDP & capex growth
• Large customer base for cross-sell
• Industry specialization
• Organizing around customers
• Products to industry verticals
• Channel to country model
• Large, rapidly growing market
• Regulatory environment improving
• Tripling sales force by 2009
Well positioned for global growth
CFPA1147 Oct SA_Bossidy / 11
Growth formula
Give customers differentiated offering
Driving better sales & marketing– More “feet on the street”– Commercial excellence– Cross-selling
Attacking new markets– IT specialization
Improving customer-facing processes– Net Promoter Score– LEAN
CFPA1147 Oct SA_Bossidy / 12
$ Volumeper rep
# Reps 1,800 900 1,100
$14MM $9MM $6MM
Americas Europe Asia
~3,800 sales reps deployed globally
Adding more sales reps to drive organic growth
CFPA1147 Oct SA_Bossidy / 13
Commercial excellence driving resultsSales deployment
Leveraging technology
Sales training
Cross-sell Sales compensation
Volume
’05 ’06E
$32B~$37B
16%
Marketing excellence
– Customer segmentation
One customer view… Make our sales reps smarter in front of customers
We’re using a more scientific approach and more technology
CFPA1147 Oct SA_Bossidy / 14
Re-prioritized 27,000 customers &
prospects
US Equipment Finance segmentation & deployment
Mainly manual effort to prioritize prospects &
deploy sales force
100,000+ prospects
BeforeDatabase
prioritization
Developed proprietary data
driven model
Salesdeployment
–Defined calling rigor–Realigned 128 sales
territories
Volume up 58%
Q1 ’05
$370
Q1 ’06
$234
CFPA1147 Oct SA_Bossidy / 15
Cross-sell… optimizing our opportunity
Seeing results…
• “Best-in-class market reach”
• Huge customer base• Strong sales force• Prospecting machine
Fleet Equipment Finance
$200MM incremental
volume
• “Differentiated offering”• Strong value proposition…
financing + services
…BUT, small sales force, ‘farmer’ orientation
Extend reachof great product offering!
Extend reachof great product offering!
• Dedicated cross-sell leader• Sales teams regionally aligned• Equipment Finance repbrings in Fleet to
sell value prop to customer / prospect
CFPA1147 Oct SA_Bossidy / 16
Large global market…plenty of room to grow
Total end user spend
Financed
~$425B
~$65B
Growth drivers…
Executing strategy to “go big” in IT
End user coverage • Services industry deployment• Leverage regional infrastructure
Build IT collateral COE
Product excellence
Reseller connection• Lease routing optimization• One Capital Solutions face to
customer
• Soft cost bundling• Global asset management
strategy
• COE drives product excellence & sales collaboration
Volume
~$2.0B
~$0.9
’06E ’09F
31%CAGR31%CAGR
CFPA1147 Oct SA_Bossidy / 17
Net Promoter ScoreFranchise Finance‘time to decision’
example
Cycle time from28 to 7 days
NPS to 77% from 52%
Volume $85MM
High NPS scoreslead to growth
NPS identifiescustomer-facing processes to be
improved
Accelerating LEAN everywhere to drive process
improvements
Yields growth
ACFC+
CFPA1147 Oct SA_Bossidy / 18
LEAN “Inquiry To Order” showcasesVendor FinanceAustralia
Customers love it! …actual improvements exceeding targets
• Eliminated proposal requirement for deals <$3MM
• Consolidated document & settlement teams
• Consolidated 6 processes into 1
• Reduced # application versions from 38 to 1
• Consolidated application entry process… improved accuracy 300%
• Consolidated 4 processes into 1
Goal:1 day
“Fastcash”
Cycle time from150 to 44 days
$125MM volume target $100MM volume target
Cycle time from127 to 50 days
Capital Solutions…
Moreaggressive
costefficiencies
Moreaggressive
costefficiencies
Faster growth
Growth playbook Fund sales growth Fund sales growth with G&A reductionswith G&A reductions
+
CFPA1147 Oct SA_Bossidy / 20
Cost efficiencies
Productivity roadmap• Rationalize redundant HQs• Acquisition integrations• Improve & integrate business
processes• Initiated Global Productivity
Council
• Create/ leverage centers of excellence (COEs) for key operating processes
• Drive efficiencies across indirect sourcing spend
• Focus on Asia and Europe
($ in millions)
'04 '05 '06E
G&A % of average served assets
1.8%
~1.3%
1.5%
~$2,400
’05 spend
Front-end
G&A
~800
~1,600
Opportunity
Volume persales rep
G&A peravg. served
asset
2.0%
1.5%
1.0%
0.5%
~$130MM+ cost out
~$130MM+ cost out
CFPA1147 Oct SA_Bossidy / 21
~20%+ • Huge markets… a lot of opportunity to grow
• Differentiating our offering thru customer-centric approach– Growth priorities– Net Promoter Score (NPS) / LEAN
• Diverse, high quality portfolio
• Cost synergies… funding sales growth with G&A reductions
’05 ’06E
$1.5B
~$1.8B
Net income
Summary
ROE 22% ~24%
($ in billions)