AMERICAN EXPRESS COMPANY EXPRESS COMPANY AMERICAN uncommon American Express Company 200 Vesey Street New York, NY 10285 212.640.2000 SERVICE www.americanexpress.com ANNUAL REPORT 2007 REPORT ANNUAL American Express Company ANNUAL REPORT 2007 CONSOLIDATED FINANCIAL HIGHLIGHTS AMERICAN EXPRESS COMPANY GENERAL INFORMATION EXECUTIVE OFFICES A written transcript or an audiocassette of STOCK PURCHASE PLAN (Millions, except per share amounts and employees) 2007 2006 % Inc/(Dec) American Express Company the meeting will be available upon writ- The company’s Shareholders’ Stock 200 Vesey Street ten request to the Secretary’s Office.T here Purchase Plan provides shareholders and Revenues net of interest expense $ 27,731 $ 25,154 10% New York, NY 10285 will be a modest fee to defray production new investors with a convenient way to Income from continuing operations $ 4,048 $ 3,611 12% 212.640.2000 and mailing costs. purchase common shares through optional cash investments and reinvestment of divi- (Loss) Income from discontinued operations $ (36) $ 96 # INFORMATION AVAILABLE CORPORATE GOVERNANCE dends. For a prospectus and other inquiries TO SHAREHOLDERS Copies of American Express Company’s Net income $ 4,012 $ 3,707 8% regarding the Shareholders’ Stock Copies of the company’s Form 10-K, governance documents, including its Diluted earnings per common share Purchase Plan, contact: proxy statement, press releases and other Corporate Governance Principles, as well from continuing operations $ 3.39 $ 2.92 16% The Bank of New York Mellon documents, as well as information on as the charters of the standing committees P.O. Box 11258 Diluted (loss) earnings per common share financial results, products and services, of the Board of Directors and the American New York, NY 10286-1258 from discontinued operations $ (0.03) $ 0.07 # are available on the American Express Express Company Code of Conduct, are 1.800.463.5911 Web site at www.americanexpress.com. available on the company’s Web site at Diluted earnings per share $ 3.36 $ 2.99 12% www.stockbny.com The company’s global Corporate Citizenship http://ir.americanexpress.com. Copies of Cash dividends declared per common share $ 0.63 $ 0.57 11% Report and a report of the company’s 2007 these materials also are available without SHAREHOLDER AND federal and state political contributions are INVESTOR INQUIRIES Book value per common share $ 9.53 $ 8.76 9% charge upon written request to the Secre- available at www.americanexpress.com/csr. tary’s Office at the above address. Written shareholder inquiries may be sent Average common shares outstanding for Written copies of these materials are On May 21, 2007, Kenneth I. Chenault, either to The Bank of New York Mellon, diluted earnings per common share 1,196 1,238 (3)% available without charge upon written Chairman of the Board and Chief Executive P.O. Box 11258, New York, NY 10286-1258 Total assets $ 149,830 $ 128,329 17% request to the Secretary’s Office at the Officer of the company, submitted to the or to the Secretary’s Office at Ameri- above address. New York Stock Exchange the Annual can Express Company’s executive office Shareholders’ equity $ 11,029 $ 10,511 5% address above. Written inquiries from the TRANSFER AGENT AND CEO Certification required by the rules Common share cash dividends declared $ 740 $ 692 7% REGISTRAR of the Exchange certifying that he was not investment community should be sent to Investor Relations at American Express Common share repurchases $ 3,572 $ 4,093 (13)% The Bank of New York Mellon aware of any violations by the company of c/o BNY Mellon Shareowner Services the Exchange’s Corporate Governance Company’s executive office address above. Return on average equity 37.3% 34.7% 480 Washington Blvd., 29th Floor listing standards. The company filed with Trademarks AND urenne Number of employees 67,700 65,400 4% T Jersey City, NJ 07310 the Securities and Exchange Commission service marks 1.800.463.5911 or 212.815.3700 the Certifications of its chief executive offi- The following American Express trade- # denotes a variance of more than 100%. Hearing impaired: cer and chief financial officer pursuant to marks and service marks may appear in 1.888.269.5221 section 302 of the Sarbanes-Oxley Act of this report: axwell; p. 23, Ron Ron 23, p. axwell; 2002 as exhibits 31.1 and 31.2, respectively, M www.stockbny.com American Express® to its Annual Report on Form 10-K for American Express Box Logo® STOCK EXCHANGE LISTING REVENUES NET OF RETURN ON AvERAGE DILUTED EARNINGS PER the year ended December 31, 2007. American Express Card Design® INTEREST EXPENSE EQUITY SHARE frOM CONTINUING New York Stock Exchange (in billions) OPERATIONS DIRECT DEPOSIT OF American Express World Service & Design® (Symbol: AXP) SM DIVIDENDS Bonus Points Mall INDEPENDENT REGIstered The company has established an Electronic Centurion® $3.39 public accounting firm $27.7 Gladiator Head Design® 37.3% Direct Deposit of Dividends service for the hotography: pp. 3–12, pp. hotography: Robert 34.7% $25.2 PricewaterhouseCoopers LLP $2.92 electronic payment of quarterly dividends Membership Rewards® $22.4 300 Madison Avenue $2.43 P $20.4 on the company’s common shares. With this Members Project® 25.4% $18.1 ork New York, NY 10017-6204 $2.05 Y OPEN® 22.0% service, registered shareholders may have 20.6% $1.75 SM ew OPEN Forum N ANNUAL MEETING their dividend payments sent electronically nc., nc., Platinum Card® I The Annual Meeting of Shareholders of to their checking account or financial insti- SM American Express Company will be held tution on the payment date. Shareholders Plum Card artners, artners, P at the company’s New York City head- interested in enrolling in this service should ©2008 American Express Company. SA quarters, 200 Vesey Street, New York, call The Bank of New York Mellon at All rights reserved. 03 04 05 06 07 03 04 05 06 07 03 04 05 06 07 NY 10285, on Monday, April 28, 2008, 1.800.463.5911. esign: V esign: D at 10:00 a.m., Eastern Time. Various forward-looking statements are made in this Annual Report, which generally include the words “believe,” “expect,” “anticipate,” “optimistic,” “intend,” “plan,” “aim,” “will,” “may,” “should,” “could,” “would,” “likely,” and similar expressions. Certain factors that may affect these forward-looking statements, including American Express Company’s ability to achieve its goals referred to herein, are discussed on page 63. This report is printed on paper containing postconsumer fiber.T he paper used in this report is also certified under the Forestry Stewardship Council guidelines. As we mark another year of strong growth, we’re also preparing to mark a milestone. Fifty years ago, we introduced the American Express Card—the product that transformed our company and helped shape a new industry. Our business looks vastly different today, but we’re still guided by the same principles— understanding our customers, treating them well and delivering the true reward of membership: uncommon service, tailored to their individual needs. UNCOMMON VALUE By welcoming American Express, merchants improve their odds of attracting high- spending customers. But they don’t have to leave it all to chance. Our information management and marketing experts can help them reach new customers, get more repeat business and otherwise expand their enterprises. Any payments company can facilitate transactions. Only one can offer merchants the spending power of American Express cardmembers and the insights to tap it. Over the course of our partnership, American “ Express has become deeply entwined in our business. They understand the luxury market in a way not many organizations do, and the connections they provide us to their discerning clients are invaluable. STEFANO CANTURI, RENOWNED JEWELRY DESIGNER ” WITH BOUTIQUES IN AUSTRALIA AND THE UNITED STATES 2 UNCOMMON ACCESS Get away from the crowds and into some of the best seats in the house. American Express is the only connection required. How about a bird’s-eye view of the fashion runways in New York or Milan? A private concert with Jon Bon Jovi in Toronto? A golfing demonstration and exclusive tour of the famed Oakmont course (tour guide: Tiger Woods)? Those are just a few of the many remarkable experiences we offered card- members in 2007. My girlfriend is big into fashion, so she was especially excited about getting to experience Fashion Week in “ New York. There were massive crowds waiting on line and paparazzi everywhere, but all we had to do was present our American Express tickets and we were ushered right in. Once inside the SkyBox, American Express representatives took care of us with VIP treatment all the way. WILL JONES, AMERICAN EXPRESS CARDMEMBER ” 4 Experiencing different cultures and being in unfamiliar situations “ helped inspire my work over the years. The American Express Card was an essential part of those travels. You took care of whatever I needed, and always with a personal touch. Frankly, I don’t know how I could have managed without it. ELAINE HAMILTON O’NEAL, ARTIST, WORLD TRAVELER AND AMERICAN E XPRE”SS CARDMEMBER SINCE 1958 UNCOMMON loyalty “All we have to sell is service.” That’s what Ralph T. Reed, then president of American Express, said in 1958 on the launch of a new and untested product―the American Express Card. Fifty years later, our particular brand of service is a reason why we still have thousands of original cardmembers today. In 2008, the Card’s 50th year, we celebrate all of our cardmembers and rededicate ourselves to delivering what has always distinguished us in the marketplace: uncommon service. 6 UNCOMMON SIMPLICITY Easy can be hard to come by, especially in today’s complex business environment. That’s why we offer a wide array of services designed to give com- mercial card and travel clients peace of mind while making expense management a breeze.