American Express 2005 Annual Report Download - page 23

■ Emerging markets — Economic growth and the rapid advance of consumer spending in countries such as
China, Russia and India are exciting developments. In 2005, we introduced our first cards in China and
Russia in partnership with ICBC and Russian Standard Bank. With well over a billion potential cardmem-
bers and plastic penetration in the low single digits, these markets hold significant promise. As plastic
spending and the consumer credit infrastructure evolve, we see considerable opportunity here over the
moderate to long term.
■ Global middle market — This continues to be an excellent growth opportunity for American Express, as we
focus on leveraging our strengths in the corporate sector to bring expense management and other services
to midsize businesses around the world. These companies spend more than $900 billion annually on travel
and entertainment, office equipment and supplies, shipping, and other incidental costs — all expenses that
we can help them manage. While we have made great progress in this area, we are only just scratching the
surface.
■ Alternative payments and new industries — From buying a cup of coffee with the wave of a “contactless”
card to making monthly rent payments with American Express, our cardmembers have many new ways to
use their cards instead of cash. The same is true for prepaid Gift Cards designed to take the place of cash
and checks for gift-giving. We will continue to develop new payment alternatives that are faster and more
convenient for consumers.
With such a wide variety of opportunities already in our pipeline and strong momentum moving us forward,
we feel confident in our ability to sustain our growth over the long term.
COMMITMENT TO SERVICE
Our ultimate goal is to be one of the most respected companies in the world, regardless of industry, based on
long-term financial performance and honorable conduct. It’s not just about results, but how we achieve them
— with a commitment to integrity and service.
This commitment starts at the top with our Board of Directors, which provides invaluable guidance. On behalf of
our employees and shareholders, I want to thank our Directors for their dedication to the company. In particular,
I would like to recognize William G. Bowen who, having reached the mandatory retirement age, will not stand
for reelection to the Board in 2006. We are grateful for his 18 years of distinguished service to American Express
and we will miss his wise counsel. In another change, in January 2006 we welcomed Peter Chernin, President
and Chief Operating Officer of News Corporation, as a new Director. Peter will make an outstanding addition to
our Board.
While the dedication of senior leaders is essential, our ability to live up to our values ultimately depends on
the tens of thousands of American Express employees who personify our brand. What we stand for was never
AXP / AR.2005
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