the ge challenge 2012 -jaimay team

7/31/2019 The Ge Challenge 2012 -Jaimay Team

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How to break the barrier to growthin Australian Mid-Market?

THE GE CHALLENGE 2012

1


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GE MONEY

Retailer Solutions

Insurance Services

Money Direct

GE CORPORATE FINANCE

Commercial Real Estate

Distribution Finance

Fleet & Equity Finance

Pacific Premium

70%GE ANZ

2 Source: Team's Estimation & GE in Australia FactSheet (2009)


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GE ANZ CAPS REVENUE FINANCIAL CONCERNS

Consum

er

30%

Real

Estate

5%

GE

Vertical

25%

Mid-

Market

Lending

40%

Complicated Matrix RelationsWith GE Verticals

Reliance On Credit To EarnLow Interest Rate Loan

Low ROI (~1-2%)

GECS reported decreasingCash at End FY10-12

10% Of Debt Compositionarriving from Securitization

Source: Team's Estimation & GE Capital Investor Meeting Presentation (2011) & GE Capital WebCast Presentation (2010)3


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Economic Contribution byMid-Market (2009-10)

Current:

BARRIER TO GROWTH

Non-service sectors, accountsup to 49% national GDP, but onthe decline in 2012.

Mid-Markets firms considered

too big to received governmentsupport. But too small to accesscapital from banks.

Not large enough to attract

media attention

Source: Team's Analysis & GE Capital Mid-Market Report (2011, 2012)4


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Focus on GE Verticals

5 Source: Team's Strategies & GE Capital Investor Meeting Presentation (2011) & GE Finance Thoughts, BetterTrades (2012)

Rising AsiaUrbanization:

Long term invest onmineral & hedgingto reduce impact ofcommodity priceschanges

EnvironmentalRegulation:

Moving forward togas, take advantageof Water TreatmentServices

PopulationGrowth:

Huge opportunitiesfor more in GE ANZ

Healthcare sectorsto grow


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6 Source: Team's Analysis & GE Capital Investor Meeting Presentation (2011) & IBIS Report: Fastfood Industry in Australia (2012)

Implementing GE Insurance & GE Franchising

Learn from GE Insurance

-More Insurance product choices

-Approach to corporatecustomers: firms, hospitals,

factories

Start GE Franchising

ANZ Fast Food market reached

its maturity in 2011 and growconstantly at 7% per ann., whilstmore than 50% of market shareis non-brand retailers highsimilarity with the USA.


7/137 Source: Team's Analysis & GE Capital Mid-Market Report (2011, 2012)

Sub-plans Action Plan Expected OutcomeEstimatedExpense

ON CAMPUS

TRAINING

-Mid Semester

-Once/ year

-TAFE, universities-Focus: non service s

oriented courses.

More skilled worker in

the field in next 5 years.

~$5-8,000/school/

event/year

EXPERIENCED

LEADERSHIP

PROGRAMS

-Upon/closer to

graduation of

postgraduate studies

-Once/ year

- Universities

- Focus: on non-service

oriented courses

More skilled workers in

the specific sector of

sales & marketing in the

next 5 years ( specialisingin midmarket firms)

~$10 -15,000/ year


8/138 Source: Team's Analysis & GE Capital Mid-Market Report (2011, 2012)

Sub-Plans Action PlanExpectedOutcome

EstimatedExpense

OUTSOURCING -Collaborate with

foreign recruitment

agencies

-Add-in services for mid

market firms

-Solve the current

threat of limited access

to skilled workers in

next 5 years

Expense:

~$40,000/5 admin

staff + workplace/

month

Revenue:

~$5-10,000/ one

outsource labour

PROPOSE TO

FEDERAL ABOUT

SKILLED LABOUR

ISSUES

-Take an example in

Singapore, for every 4

locals hired, 1 foreigner

can be outsourced.

-This creates jobopportunities for locals

as well as foreigners-$0


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APPENDIX


10/1310 Source: Team's Analysis & GE Australia and New Zealand Fact Sheet & GE Finance Thoughts, BetterTrades (2012)


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S W

T

Strengths

Diversified Business Portfolio

Dominant Lender for Mid-Market

High Level Of Expertise Strong Financial Position

Opportunities

Rising Asia Urbanization

Environmental Regulation

High Population Growth

Mid Market Financing

Threats

Chinas Growth

Falling Commodity Prices Access to Skilled Worker

Long term AUD StrengthO

Weaknesses

More Than 60% Profits ArrivingFrom GE Capital

Weak Revenue Growth Of CoreIndustrial Segments

Gap Amongst Core Segments

11 Source: Team's Estimation & GE Capital Investor Meeting Presentation (2011)


12/13Source: Team's Analysis & Mid-market China Investment Survey, Pillsbury Law (2011)12

6%

willing to M&Awith foreign firms

55%

will likely go tothe market next

to raise capital

26%

consider Australia& NZ are biggest

opportunities


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We have discussed about:

Slide 2: GE ANZ Capital Structure Analysis

Slide 3: GE ANZ Capital Sources of Financing Analysis

Slide 4: Australian Mid-Market Financing Analysis Slide 5 & 6: Strategy to improve GEs Financial Position

Slide 7 & 8: Strategy to gain more Skilled Labour

Appendix:

Slide 10: Imbalance of GE Australia & NZ Segmentation Slide 11: GE Australia & NZ SWOT Slide 12: Opportunities with Chinas Mid-Market

Thank you very much

the ge challenge 2012 -jaimay team

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