The Luxury Consumer

Preferred Hotel Group 2008 Asia Pacific Regional Meeting

American Express, Merchant Service International Phil Pomford Global Client Manager

Agenda

Introduction to American Express in JAPA American Express Research Inside the Affluent Space Lifestyle Index and Spending Trends LIST

Platinum & Centurion Survey Results Opportunities to Partner Marketing Channels

American Express in JAPA

(Japan, Asia Pacific and Australia)

America n Express Proprieta ry

Over 5 million proprietary cardmembers across 8 proprietary markets with JAPAN Japan and Australia being the largest in terms of card base
T AI W AN

H ON G KON G

I N D I A T H AI LAN D

SI NGAPORE AUSTRALI A

N EW Z EALAN D

America n Express Pa rtner Network

Our 32 Partners are strategic key players across 20 markets who are the market leaders in their market and have premium portfolios
NCL Partners
AUSTRALIA: AUSTRALIA: HONG KONG: HONG KONG: HONG KONG: INDIA: JAPAN: MALAYSIA: NEW ZEALAND: SINGAPORE: TAIWAN: TAIWAN: TAIWAN: TAIWAN: THAILAND: JAPAN: CHINA:

IO Partners
BRUNEI: MALDIVES: KOREA: KOREA: CHINA:

IO
CAMBODIA: FRENCH TERRITORIES: INDONESIA: KOREA: South Pacific Island: VIETNAM: MALAYSIA: PHILIPPINES: PAKISTAN: SRI LANKA:

American Express Research

Inside the Affluent Space Singapore example Lifestyle Index and Spending Trends LIST Platinum and Centurion Cardmembers

Areas of Research

Inside the Affluent Space (IAS) The number of millionaires in Asia Pacific is growing twice as fast as any other region Amex has conducted attitudinal research into this fast growing segment, in 6 markets Research with the cardmembers and the merchants who serve them, from hotel concierge and luxury high end retailers Lifestyle Index & Spending Trends (LIST) Provides a quantitative perspective of the spending and purchasing behavior of the affluent in Singapore Analyses retail growth and growth in spending on luxury items LIST provides a snapshot in time of where the affluent are spending

IAS Findings - Regional

Hong Kong
Moving from Status conscious to wanting to become Connoisseurs and understand the history of their goods

Singapore
More interested in Talk value , the unusual and the story worthy travel excursions. Seek out service providers who make a personal connection with them

India
New wealth equals Aspirers . They care more about badge value and want recognition, hot trends and brands.

Australia
Wealth is simply to enable them to enjoy their life. Service provider s must be knowledgeable, responsive and easy to deal with

Japan
Extremely sophisticated, incredibly detail orientated and looking to express themselves as individuals. This means unique travel experiences with the highest service levels

IAS Findings - Singapore

LIST Findings - Singapore

Affluent consumer spending is on the rise 2007 Amex billings grew at 23% Vs industry growth of 16% Reta il spending grew 29% compa red with 20% in 2006 Luxury wa tches grew by a n a stounding 70% in 2007 over 2006! High end jewelry grew by 56% Fine dining spending grew at a healthy 24% Avera ge tra nsa ction for luxury wa tches grew 37% to S$3,829 Avera ge tra nsa ction for fine dining up 13% to S$440
3 times the value at restaurants overall

Amex Pla tinum a nd Centurion Resea rch - JAPA

Profiles

Travel Insights - Business

Number of business trips per year (in %)
27

16 or more 11-15
7 10 9

15 20

6-10

21 22 21 19 29 25 18 19 19 8 5 6

3-5 1-2

8 business trips per year 8 business trips per year 10 business trips per year 10 business trips per year 9 business trips per year 9 business trips per year
Total PLATINUM CENTURION

none

How many business trips do you take per year?

Travel Insights - Leisure

Number of leisure trips per year (in %)
8

16 or more 11-15
2

4 5 6 4 18

6-10

12 14 44 47 46 23 34 30 1 1 1

3-5 1-2

5 leisure trips per year 5 leisure trips per year 6 leisure trips per year 6 leisure trips per year 5 leisure trips per year 5 leisure trips per year

none

Total

PLATINUM

CENTURION

How many leisure trips do you take per year?

Our Ca rdmembers Tra vel the World

Travel destinations in past 12 months (in %)
West ern Europ e Unit ed St a t es/ Ca na d a A sia * Sout h Pa c ific Sout hea st A sia * Middle East Ea st ern Europ e/ Russia A fric a Mexico/Caribbean Cent ra l or Sout h A m eric a None 0
3 4 3 3 5 5 5 9 10 9
* Asia: China, Japan, Korea, India, Pakistan, etc. Southeast Asia: Malaysia, Singapore, Thailand, Vietnam, etc.

47

64 53 53 51 52 51

32 44 26 27 14 13 13 9 12 11 10 10 10 10 29

Total
20 30

PLATINUM
40

CENTURION
50 60 70

10

Travelling in the past 12 months.

Opportunities to Partner

JAPA High Level View

Rea ch a nd Qua lity of Ca rdmembers

8 proprietary markets (over 5 mm cardmembers) 4 Centurion ma rkets (Austra lia , Hong Kong , Sing a p ore a nd Ja p a n) Over 32 GNS p a rtners in 20 ma rkets (over 5 m m c a rd m emb ers) Premium GNS cardmembers access via Premium channels ENTRE Key target source markets : Japan, Hong Kong, Australia and Singapore Emerging markets of interest : China and India

Ava ila bility of Ca rdmember Ma rketing Communica tion Cha nnels

Highly valued marketing channels especially DMs and free channels Channels ranging from solus DM, platform programs, Above the Line, echannels etc GNS marketing opportunities Local marketing opportunities

Regiona l & Loca l Opportunities

Regional
1.Targeted DM/eDM 2.Destination campaigns e.g. Visit Asia Pacific 2008 3.Travel Auctions Going Once in US targeting Asia properties 4.Travel Magazines T&L, Centurion & Departures 5.MR Redemption Program 6.Entre GNS Premium

Local
1.Selects Dining offers 2.Selects Travel Wallet/Offers 3.Statement Messaging 4.Billing Inserts 5.E-newsletters 6.MR Redemption Program

GNS Ma rketing Opportunities

1.

ENTRE Global Premium usage platform offering unique benefits and privileges

2.

Travelers' Pick - Destination Campaigns : Indonesia and Malaysia Regional platform open to all GNS cardmembers in JAPA

3.

Journeys Web based content for US based co-brand cards

4.

Global e-Shop Online secure portal targeting affluent cardmembers, with exclusive lifestyle offers full concierge booking service

5.

Business Advantage Specifically targeted at the SME segment, lodging, airline and MICE

Releva nt Ma rketing Opportunities - Local

Japan Business Savings Selects Lodging Selects Dining Hong Kong Winning Cities : Macau Hong Kong Travel Wallet Merchant Bonusing and Redemption Singapore Merchant Bonusing Destination Marketing Travel Industry Program Selects Dining ATL campaign and Events Australia MR Bonusing Winning Cities : Sydney Selects Dining/Retail/Travel India China Thailand Selects Dining and Fine /Premium Dining Guide with Time Out Selects Inbound (Travel Wallet) Selects Travel Wallet (Lodging, Restaurant and Retail) Selects Travel Wallet (Inbound)

Summary of Opportunities
Communication Channel
Targeted Direct Mailers
Solo Di rect Mai ler Solo Elect roni c Di rect Mai l Subj ect t o mai li ng Mont hly All markets Si ngapore, Aust rali a , New Zealand 3 months 2 months

Frequency

Markets Available

Lead Time

Complimentary Communication
St at ement Insert Cardmember Inf ormat i on Page (CIP) Select s Websi t e Newslet t er E Newslet t er Mont hly Mont hly Li ve Mont hly Mont hly Chi na GNS All markets All markets Aust rali a (Insi der) Japan, Hong Kong, Aust rali a Si ngapore, New Zealand, Aust rali a 2 months 1 month 2 weeks 2 months 2 months 2 months

Above The Line

Internal Plat i num Magazi ne Cent uri on Magazi ne Expressi ons (Thai land) Depart ures (Japan) Impressi on Gold (Japan) External Local papers & magazi nes Travel & Lei sure Dai ly, Mont hly Mont hly Based on market s Aust rali a, Indi a, Chi na and Sout h East Asi a & New Zealand vari es 4 months Quarterly Quarterly 6x per Year 6x per Year Mont hly All Pat i num market s Si ngapore, Hong Kong, Aust rali a Thai land Japan - Plat i num and Cent uri on cardmembers Japan - Gold cardmembers 3 months 3 months 3 months 4 months 4 months

Multi Partner Communication Channels

GNS Entre Global e shop Busi ness Advant age MSI Select s Di ni ng, Ret ai l. Travel & Travel Campai gn (out bound) Dest i nat i on Programmes Year round Ad hoc Ad hoc All markets Aust rali a, Japan, Si ngapore Macau, Thai land or subj ect t o market f ocus 3 months 3 months 5 months Year round Year round Year round Aust rali a, Japan & Korea Hong Kong, Si ngapore, Malaysi a, Aust rali a Hong Kong, Japan, Si ngapore, Indi a and Aust rali a 3 months 2 months 3 months

Tha nk You

Appendix

Marketing Advantage
As the worlds only global issuer and acquirer, the unique value provided by our card issuing and payment processing network differentiates American Express from other payment solutions
American Express card issuing and payment processing network results in enhanced segmentation, analytical and operational capabilities

Cardmembers

Merchants

Through our closed loop, we have knowledge of our CM buying behaviour enabling objective led segmentation of our database to support marketing to drive incremental spend

Consumer Ca rds by Ma rket

Cards
Centurion Charge Platinum Charge Platinum Credit Gold Charge Gold Credit Green Charge Blue Credit

Airline/ Lodging Cobrand Cards Charge & Credit

Other Cards

Affinity

Australia

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Qantas

Blue Sky Rewards Maximiser Sumitomo

Japan

Yes

Yes

Nil

Yes

Yes

Yes

Yes

Nil

Foil Okura

Hong Kong

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Peninsula Hotels

Cheung Kong Krisflyer Gold

Singapore

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Singapore Airlines

Nil

Indian Airlines &

India Taiwan Thailand Philippines New Zealand

Nil

Yes

Yes

Yes

Yes

Yes

Yes

India Today Group RPM

King Fisher Airlines (SME Corp Card) Eva Air

Nil

Yes

Yes

Yes

Yes

Yes

Yes

Nil BMW Mini Affinity Nil NIl

Nil

Yes

Nil

Yes

Yes

Yes

Yes

Thai Airways

Nil Nil

Yes Yes

Yes Yes

Yes Yes

Yes Yes

Yes Yes

Nil Yes

Nil Nil