loans finance by abe25

VIEWS: 15 PAGES: 8

									Nalanda University – 5 B.C.   Taj Mahal – 17th Century     Lotus Temple- 20th Century      Corporate Park-21st Century



 TP Chopra
 President & CEO
 GE Commercial Finance - India




            GE India                                                  “go      BIG                             ”

                                                                                   Growth & Margin Analyst Meeting 07-26-06/1




 India … taking off
  ($ in billions)

                                                                          GE revenue


                                                                             ~40%
                                                                                        ~$1.4
                Population      1.1B                                 $1.0
                GDP           796.5B
                ’06 GDP growth 8.5%
                                                                      ’05                 ‘06E
                                                                            Priorities
      $122B invested in energy products                  1 Win key power proposals
      Demographics driving needs                         2 Build infrastructure capability / financing
      – Energy, transportation
                                                         3 Win water programs
      – Healthcare, water
                                                         4 Build enterprise accounts
      – Financial services
                                                         5 Establish real estate position
     At inflection point … strong
     fundamentals
                                      GE uniquely positioned
                                                                                   Growth & Margin Analyst Meeting 07-26-06/2
Young populace fuelling the boom
 75% population < 44 yrs                                                     % growth in income groups*
                                                                                                                   73
                                                                                                                     Urban
                                                                Indian                          40
                                                              middle class
                                                               >300MM
                                                                                                                 30 Rural
                                                                                                14

                                                                                               ‘01                       ‘07
                                                                                                                        *Higher & Upper middle


  6th largest                             5th largest                    5th largest                          15th largest
        500                                            20                           15                                      90
  170                                       11                                9.5                                 36

  ‘06   ‘10                                 ‘06       ‘10                     ‘06   ‘10                           ‘05      ‘10




                 Per capita income doubled in last 10 yrs                                          Growth & Margin Analyst Meeting 07-26-06/3


                                                                                     Source: NCAER, Goldman Sachs, Figures in MMs




… and the change is irreversible
        Sustained Reforms                                                                 Consumer Boom
• Liberalization across                                                             • Growing primary demand
  sectors
                                                                                    • Lower interest rates
• Legal & tax reforms
• State governments                                                                 • Growth in young spenders
  participation


                                                              India‘s
                                                              Growth
• Stable Capital Markets                                                            • Overseas acquisitions
• Increasing Forex reserves &                                                       • High capacity expansions
  FDI stock
                                                                                    • Strong Corporate
• Strong investor confidence*                                                         performance

        Financial Stability                                                               Robust Industry
                                                                                                   Growth & Margin Analyst Meeting 07-26-06/4

                * AT Kearney Business Confidence Index 2004
GE Businesses in India

          Consumer
                                             Heathcare
           Finance


     Infrastructure                             Industrial


        Commercial
                                                CNBC
          Finance

   $1.4B Revenue      12,500 + Employees     25,000 + GE affiliates


              GE‘s presence in India over 100 yrs
                                                 Growth & Margin Analyst Meeting 07-26-06/5




GE - well aligned to growth sectors
            Sector                Investments          GE Business



                                                Infrastructure
  Power                              $256B      Commercial Finance


                                                Infrastructure
  Defense                             $54B      Industrial
                                                Commercial Finance

                                                Healthcare
                                                Infrastructure
  Healthcare                          $45B      Commercial Finance
                                                Industrial
                                                 Growth & Margin Analyst Meeting 07-26-06/6
GE - well aligned to growth sectors
              Sector                     Investments            GE Business



                                                        Infrastructure
 Rail, Road
                                             $40B       Industrial
 & Ports                                                Commercial Finance


                                                        Infrastructure
 Civil Aviation                              $34B       Commercial Finance



                                                        Consumer Finance
 Financing                                   $20B       Commercial Finance

                                                          Growth & Margin Analyst Meeting 07-26-06/7




Significant upside to Indian aviation
                               Expansion                Affordable travel
  Economic growth
                       +       of low-cost
                                 carriers      =       for millions of new
                                                            travelers



      52 million passengers forecasted
              for India by 2008
        Four-fold increase from 2002


                                       Demand for aircraft in India
                                        expected to triple current
                                         fleet to near 700 by 2020



                                                          Growth & Margin Analyst Meeting 07-26-06/8
Domestic growth - expanding the network
                                             Domestic Passengers
                                                    (millions)



                                                                     2.5x
                                                                                   90



                                                                   36

                                                   12
                                           7


                                           '95     '00            '05             '10F


                         Pan India air footprint
                                                          Growth & Margin Analyst Meeting 07-26-06/9




Huge potential for capturing rail travel share


  Mumbai to Delhi by Express Rail            Mumbai to Delhi by Air




Trip time                ~18 hours    Trip time                            ~2 hours
Fare (first class)        US$75.00    Fare (LCC)                          US$48.00



                 Low cost carriers to catalyze air travel
                                                         Growth & Margin Analyst Meeting 07-26-06/10
                                                                Source: GECAS Research
GECAS & GE Aviation in India … ‘06 & beyond
                                                                             GE expertise across

 • Strong backlog: $3.5B
                                                                             Established airlines

 • 10 yr Services opportunities                              $1.3B
                                                                             Start-up/low-cost airlines

 • GECAS: ~$2B in financing
   commitments through ’08 … 29
                                                                             Airport opportunities
   aircraft with 8 airlines



          Positioned to be the aviation leader in the market
                                                                                    Growth & Margin Analyst Meeting 07-26-06/11




GE Money in India

    5M+ customer base
    3M+ cards Issued                                                                                                  ‘04
    10M+ applications processed                                                                     ‘03           GE Money
                                                                                                                  Home Loans
    $2B+ Assets
                                                                                   ‘02          Cash Access
                                                                               Home Equity
                                                                     ‘01       Insurance
                                                           ‘99     SME
                                                                   Lending
                                                        Personal   Program
                                              ‘98       Loans
                                                                               •   Personal loans
                              ‘96          SBI Credit
                                           Cards                               •   Auto finance
               ‘95          Captive Auto
                            Finance                                            •   Consumer durable loans
              Two Wheeler
   ‘94        Finance
                                                                               •   Credit cards
Durable Finance                                                                •   Two Wheeler loans
Auto Finance
                                                                               •   Loans against property
                                                                               •   Home loans

                               Built business over 12+ years                        Growth & Margin Analyst Meeting 07-26-06/12
GE Money - Tailoring products for local needs
                      Big Market                                  Winning Capability
                                                                    Branches (150+)


     Retail &
      Auto
                                                              Expand SBI Cards partnership
     $430B+




                                                               Launch Wizard product
   Mortgage
    $30B+

Opportunity by 2010

                             Opportunity for rapid growth             Growth & Margin Analyst Meeting 07-26-06/13




 GE Commercial Finance …
  Taking advantage of the opportunity

                              Capex                                                $35B
                              (Auto, steel, engineering & construction)

                              Infrastructure                                       $25B

                              Real Estate                                          $24B
                              (Residential, IT, commercial)

                              Private Equity / M&A                                 $22B

                              Power                                                $20B


                              Commercial Vehicles                                  $10B


                 ~$100B in investments growing at 10 – 15%            Growth & Margin Analyst Meeting 07-26-06/14

                                                                                         Opportunities for FY ‘07
GE Commercial Finance …
Key Businesses & Verticals in India




   Real            Capital      Corporate Financial Healthcare Financial    Energy Financial              Aviation
  Estate          Solutions          Services             Services              Services                  Services



      35,000+ customer                   250+ Employees                     Pan India
      footprint

      Equipment Finance                 Corporate Finance                   Acquisition Finance
      Project Finance                   Leasing                             Structured Lending


                  Expertise across multiple industry verticals
                                                                              Growth & Margin Analyst Meeting 07-26-06/15




India vision 8 X 8 X 10
($ in Billions)

                   Revenue                                                 Priorities
                                 $8.0

                      6X                                 Win key power proposals
           $1.4
                                                         Build infrastructure capability /
                                                         financing
           ‘05A                  ‘10F

                    Assets                               Win water programs
                                 $8.0
                                                         Build enterprise accounts
                      4X
           $2.0                                          Establish real estate position


           ‘05A                  ‘10F

                              GE uniquely positioned to win
                                                                              Growth & Margin Analyst Meeting 07-26-06/16
                                                                                                             20060109-3
                                                                                                     JRI BOD 04-25-06/16

								
To top