NPS and Lean Six Sigma Driving Growth in. Consumer Finance. Consumer Finance. Mark Begor July 26, 2006

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1 GE Consumer Finance NPS and Lean Six Sigma Driving Growth in Consumer Finance Mark Begor July 26, 2006 This document contains "forward-looking statements" - that is, statements related to future, not past, events. In this context, forward-looking statements often address our expected future business and financial performance, and often contain words such as "expects," "anticipates," "intends," "plans," "believes," "seeks," or "will." Forward-looking statements by their nature address matters that are, to different degrees, uncertain. For us, particular uncertainties which could adversely or positively affect our future results include: the behavior of financial markets, including fluctuations in interest rates and commodity prices; strategic actions, including dispositions; future integration of acquired businesses; future financial performance of major industries which we serve, including, without limitation, the air and rail transportation, energy generation, media, real estate and healthcare industries; unanticipated loss development in our insurance businesses; and numerous other matters of national, regional and global scale, including those of a political, economic, business, competitive and regulatory nature. These uncertainties may cause our actual future results to be materially different than those expressed in our forward-looking statements. We do not undertake to update our forward-looking statements.

2 Americas overview NI $MM Assets / originations ($B) ~$93 $78 ~37 $ $27 ~ '03A '04A '05A '06E $465 $646 $872 ~$1,080 Originations Assets Reach Customers 56 Million Retail Outlets 40,000 Dealers 130,000 Brokers 14,000 Branches 420 ATM s 2,600 Fast growing, focused consumer finance company 2

3 What do we do? Targeted product line PLCC Bank Cards Personal Loans Sales Finance Multiple distribution channels Retailers Dealers Brokers Mail Telemarketing Target customers Mortgages Auto Deposits & Insurance Branches / Partner Points ATM / Kiosks Internet Focused provider of consumer finance products 3

4 Customer Acquisitions Channel 96% B2B Point of Sale Quick Screen B2B Originations 4% D2C Terminal On-Line Fax Phone On-Site Kiosk On-Site GE Resources Strong focus on B2B processes easy to offer credit easy to apply 4

5 U.S. retail sales finance $9 Assets ($B) 33% $12 $16 Powersports RV/Marine Jewelry GE product focus Home Improvement Furniture / Electronics Dental / Healthcare 127,000 dealer locations 04A 05A '06E 4.8 million customers Business model focused on helping dealers sell big ticket products with credit 5

6 Using NPS to pulse dealers Credit Culture Price Service Approval Rate Communication Net Performance (5 minus 1-3) Consumer APR Commercial Product More Special Promos Single Terminal Solution Dealers Survey Results Driving Change What We Heard Enrollment process takes too long Welcome package is confusing Training is a problem Too much paperwork; need to simplify Need More Financing Options Key Improvement Areas 1. New Dealer Enrollment 2. Funding Process 3. New Products Baseline NPS Score: 46 NPS providing critical input to improve dealer experience 6

7 Dealer enrollment process Lead Generated Application Received Application Approved Welcome Kit Delivered Dealer Training Completed First Transaction 23,000 New Dealers Added / Year What we Found 1 2 Dealer enrollment process too slow & complex Only 40% of our Dealers transact every month Focus: improve new dealer process 7

8 Pre-lean dealer enrollment process 300+ forms Data re-keyed 8 times 55 Data Entry Points 3,000+ Components in Welcome Kits Old process took 63+ days and was very complex! 8

9 Post lean impact Lean Value Stream Map Goal Reduce 63 Day Lead Time to Next Day Capability 12 days Prospect Enroll Activate 92% 80% 30% Pre Post Goal Pre Post Goal Pre Post Goal Standard Work (Web, App) Selling Mindset 21 days Process Simplification Digitization 30 days Driving to 1 day capability Enroll today, transact tomorrow 21 Marketing Content Value Proposition Rapid Notification 9

10 Benefits to dealers Ticket size $ % $900 $350K Annual sales 36% $476K No financing With financing Close rate 62% 50% 24% No financing With financing No financing With financing * Based on ADCPA study july % lift in dealer sales volume with credit 10

11 The GE opportunity Prospect Enroll Activate Applications x Approval Rate x Activation Rate x Annual Sales/ Active Dealer 23,000 94% 40% $58,000 New Dealer = Volume $500 Million / Yr Benefits from Lean $72MM $84MM $60MM 43% Lift +$216 Million 11% Increase In Apps 15% Lift in Activation 12% Lift in Sales Faster enrollment higher activation $216 million incremental volume! 11

12 Global rollout 1H NPS rollout France Hungary UK USA RSF India Australia Italy Austria Poland Thailand Examples of lean focus areas Reduce Mexico mortgage application cycle time Decrease Australia branch loan processing cycle time Portugal Denmark Latvia USA RCF Improve US corporate card new client integration time 2H 06 Czech Hungary Turkey Germany UK home lending same day offer Driving Growth with NPS and lean across consumer finance 12

13 Growth & Margin Expansion Analyst Meeting July 26,

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