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%
Population
1.1B
GDP
796.5B
’06 GDP growth 8.5%
$1.0
’05
~$1.4
‘06E
Priorities
9 $122B invested in energy products
1 Win key power proposals
9 Demographics driving needs
– Energy, transportation
– Healthcare, water
– Financial services
2 Build infrastructure capability / financing
At inflection point … strong
fundamentals
3 Win water programs
4 Build enterprise accounts
5 Establish real estate position
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
middle class
>300MM
40
30 Rural
14
‘07
‘01
*Higher & Upper middle
6th largest
5th largest
500
170
‘06
5th largest
20
11
‘10
‘06
15th largest
15
90
9.5
‘10
‘06
36
‘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
Consumer Boom
Sustained Reforms
• Liberalization across
sectors
• Legal & tax reforms
• State governments
participation
• Growing primary demand
• Lower interest rates
• Growth in young spenders
India‘s
Growth
• Stable Capital Markets
• Overseas acquisitions
• Increasing Forex reserves &
FDI stock
• High capacity expansions
• Strong investor confidence*
Financial Stability
• Strong Corporate
performance
Robust Industry
Growth & Margin Analyst Meeting 07-26-06/4
* AT Kearney Business Confidence Index 2004
GE Businesses in India
Consumer
Finance
Heathcare
Infrastructure
Industrial
Commercial
Finance
$1.4B Revenue
CNBC
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
Power
Defense
Healthcare
Investments
GE Business
$256B
Infrastructure
Commercial Finance
$54B
Infrastructure
Industrial
Commercial Finance
$45B
Healthcare
Infrastructure
Commercial Finance
Industrial
Growth & Margin Analyst Meeting 07-26-06/6
GE - well aligned to growth sectors
Sector
Investments
GE Business
Rail, Road
& Ports
$40B
Infrastructure
Industrial
Commercial Finance
Civil Aviation
$34B
Infrastructure
Commercial Finance
Financing
$20B
Consumer Finance
Commercial Finance
Growth & Margin Analyst Meeting 07-26-06/7
Significant upside to Indian aviation
Economic growth
+
Expansion
of low-cost
carriers
=
Affordable travel
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
7
'95
12
'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
Trip time
Fare (first class)
Mumbai to Delhi by Air
~18 hours
Trip time
~2 hours
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 Æ $1.3B
Start-up/low-cost airlines
• GECAS: ~$2B in financing
commitments through ’08 … 29
aircraft with 8 airlines
Airport opportunities
Positioned to be the aviation leader in the market
Growth & Margin Analyst Meeting 07-26-06/11
GE Money in India
9 5M+ customer base
9 3M+ cards Issued
‘04
‘03
9 10M+ applications processed
‘02
9 $2B+ Assets
‘01
‘99
‘98
‘96
‘95
Two Wheeler
Finance
Durable Finance
Auto Finance
‘94
Captive Auto
Finance
SBI Credit
Cards
Personal
Loans
Cash Access
GE Money
Home Loans
Home Equity
Insurance
SME
Lending
Program
•
•
•
•
•
•
•
Personal loans
Auto finance
Consumer durable loans
Credit cards
Two Wheeler loans
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
$430B+
Expand SBI Cards partnership
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
~$100B in investments growing at 10 – 15%
Growth & Margin Analyst Meeting 07-26-06/14
Opportunities for FY ‘07
GE Commercial Finance …
Key Businesses & Verticals in India
Real
Estate
Corporate Financial Healthcare Financial
Services
Services
Capital
Solutions
y 35,000+ customer
y 250+ Employees
Energy Financial
Services
Aviation
Services
y Pan India
footprint
Equipment Finance
Corporate Finance
Acquisition Finance
Project Finance
Leasing
Structured Lending
Expertise across multiple industry verticals
Growth & Margin Analyst Meeting 07-26-06/15
India vision 8 X 8 X 10
($ in Billions)
Priorities
Revenue
$8.0
9 Win key power proposals
6X
$1.4
9 Build infrastructure capability /
financing
‘05A
‘10F
9 Win water programs
Assets
$8.0
9 Build enterprise accounts
4X
9 Establish real estate position
$2.0
‘05A
‘10F
GE uniquely positioned to win
Growth & Margin Analyst Meeting 07-26-06/16
20060109-3
JRI BOD 04-25-06/16