Ge Webcast Presentation 07282009

GE Capital Investor Meeting July 28, 2009 "Results are preliminary and unaudited. 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 financial condition, and often contain words such as “expect,” “anticipate,” “intend,” “plan,” “believe,” “seek,” “see,” or “will.” Forward-looking statements by their nature address matters that are, to different degrees, uncertain. For us, particular uncertainties that could cause our actual results to be materially different than those expressed in our forward-looking statements include: the severity and duration of current economic and financial conditions, including volatility in interest and exchange rates, commodity and equity prices and the value of financial assets; the impact of U.S. and foreign government programs to restore liquidity and stimulate national and global economies; the impact of conditions in the financial and credit markets on the availability and cost of GE Capital’s funding and on our ability to reduce GE Capital’s asset levels and commercial paper exposure as planned; the impact of conditions in the housing market and unemployment rates on the level of commercial and consumer credit defaults; our ability to maintain our current credit rating and the impact on our funding costs and competitive position if we do not do so; the soundness of other financial institutions with which GE Capital does business; the adequacy of our cash flow and earnings and other conditions which may affect our ability to maintain our quarterly dividend at the current level; the level of demand and financial performance of the major industries we serve, including, without limitation, air and rail transportation, energy generation, network television, real estate and healthcare; the impact of regulation and regulatory, investigative and legal proceedings and legal compliance risks, including the impact of proposed financial services regulation; strategic actions, including acquisitions and dispositions and our success in integrating acquired businesses; and numerous other matters of national, regional and global scale, including those of a political, economic, business and competitive 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.” “This document may also contain non-GAAP financial information. Management uses this information in its internal analysis of results and believes that this information may be informative to investors in gauging the quality of our financial performance, identifying trends in our results and providing meaningful period-to-period comparisons. For a reconciliation of non-GAAP measures presented in this document, see the accompanying supplemental information posted to the investor relations section of our website at www.ge.com.” “In this document, “GE” refers to the Industrial businesses of the Company including GECS on an equity basis. “GE (ex. GECS)” and/or “Industrial” refer to GE excluding Financial Services.”

Key Messages 1 GE Capital well run thru this recession, will provide attractive long term returns 2 Funding and liquidity dramatically improved and future profile very manageable 3 Portfolios performing as expected or slightly better, most below Fed Base Case Much better

Early in cycle, but OK

• U.S. Consumer

• U.K. Mortgage • Commercial loans and leases • Global Banking

Challenging • Commercial Real Estate

4 2010 stress test loss scenarios show losses similar to 2009 5 Historically, new regulation included grandfathering … believe we have strong

support for our business model and will defend vigorously 6 We don't see the need to raise external capital, even under adverse scenarios 7 Post this cycle, GE Capital will emerge as competitively advantaged $400B

business with attractive returns (2%+ ROI)

2

GE Capital is a strong franchise Earnings power*

Positioned to grow in future

Volume

Through cycle –

Future =

Margin

+

+

SG+A

+

+

Credit costs

–

+

Gains/impairments

–

+

Tax




–

>$80B

$13B Since 4Q’07

20 yrs.

Strengths
Large in-house originations … great geographic/domain coverage
Support of AA/AA+ rating
Strong risk management culture
Asset management expertise * Earnings of GECC through 2Q’09

We will come out of this cycle strong and competitively advantaged

3

1st half results – Capital Finance ($ in billions)

$557 (11%) $1.7

1H update
ENI excluding FX $24B from 4Q … continuing to rapidly reduce balance sheet

(69%)


$144B of total YTD originations … $15B of commercial on-book originations at attractive returns

Net earnings

Assets


GECC earnings $1.3B 2009 TY Original outlook ~$5.0 Fed base case ~2.0-2.5 Fed adverse case ~$0


Credit cost at $2.8B for 2Q, $5.1B YTD; YTD impairments $0.7B … currently running better than Fed base case
Reserves $6.6B, up $0.9B from 1Q … coverage 1.81%, up 22 bps.
SG&A down (28%), $1.9B of savings … strong cost out actions

1H losses trending slightly better than base case

4

Capital Finance safe & secure ($ in billions) 1 Long-term debt funding

3 GECC leverage–c)

2 GECS Commercial paper

$84 $72

$45–a)

7.1:1

$58

$50

1Q'09

2Q'09

$35-40

6.0:1

5.6:1

1Q'09

2Q'09

18–b) ’08

’09

’10F

4Q'08

a) - includes $13B pre-funded in 2008 b) - completed through July 22nd

Cash & backup bank lines >2X CP

4 Tier 1 common ratio

GECC GECS

7.3%

7.4%

4.7

6.3

6.5

4Q'08

1Q'09

2Q'09

5.7%

5

4Q'08

c) - net of cash & equivalents with hybrid debt as equity ex-non-controlling interests

Ending net investment–d) $525 $514

Completed ’09 goal … expect lower

$501

4Q'08

1Q'09

2Q'09

d) - excluding effects of FX

5

GE Capital … important source of liquidity to U.S. businesses and consumers Since 1/1/08

Estimated U.S. market position • Middle Market Commercial Lending

#1

• Equipment Lending/Leasing

#1

• Middle Market Corporate Finance

#1

• Aircraft Financing

#1

• Healthcare Financing

#1

• Energy Financing & Project Financing

#1

• Fleet Leasing

#1

• Franchise Finance

#1

• Commercial Real Estate Lending

$69B $26B Flow

$43B On-book

Top 3

• Dealer Financing

#1

• Private Label Credit Cards

#1

1H'09 U.S. volume


$155B of new financings to companies, infrastructure projects and municipalities
$127B of credit extended to ~50 million consumers
GECC has outstanding credit with more than 330,000 commercial customers and 145,000 small businesses supported by our Retail programs
In 2009, added ~16,000 new commercial customers and ~23,000 new small businesses supported through our Retail programs
Supported virtually all U.S. airlines, leader in bankruptcy financing, healthcare and energy infrastructure

Continuing to provide liquidity to critical areas of U.S. economy

6

2009 originations and collections ($ in billions) 1st half actual*

2nd half estimate $103

+24B

+18B

Dynamics • TY’09 Planned volume: – Consumer: $112B - includes revolving credit – Commercial: $41B

$85

$92 Sales

• Monthly pricing reviews

$68

• Repositioning portfolio to higher yielding core businesses:

Collections

New volume returns *ex-FX

Sales/ collections

Volume

Sales/ collections

Volume

Business Americas

’09YTD ROI ~3.0%


Assumed TY sales/securitizations ~$20B  (41%) … $10B in 1H

Asia Europe

~3.3% ~2.4%


Assumed TY R/E equity sales ~$1.6B  (64%)

Banking EFS

~2.6% ~10.0%


Actual sales and collections out-paced new originations by ~$62B since 3Q’08

GECAS

~3.8%

7

Playing offense ($ in billions) Global Volume $144B*

Dynamics

Key 1H wins/renewals

• 2Q volume  10% from 1Q • Strong 3Q mid-market pipeline growth … $16.1B 20%

Commercial

88

• #1 Sales Finance franchise in U.S. ... winning deals from competitors @3%+ ROI, strong pipeline • #1 PLCC provider in U.S. ... aligned with strategic retail partners

Consumer

52

Verticals

4

1H'09

• Aviation emerging markets capabilities driving 80% new order placements … strong 2H pipeline…$1B+ • Helping customers grow … 80+ on-site workshops; 55+ tradeshows/conferences

*$68B on-book

8

2009 ending net investment ($ in billions) Dynamics

ENI

• Reduced volume across selected portfolios

$525 $501 ~$480-485

V% ~(8%)

• RE, Mortgage and “red asset” volume limited … down ~90% YTD • Limited BD activity assumed – Santander + ANZ Mortgage dispositions executed 1H’09 – Philippines + Thailand FinCo ($1.2B) to close in 2H’09

• Enhanced collections activities • Regular Capital reviews

’08

2Q’09*

– Volume pipeline – Alternate funding

’09

Outlook

* ex-FX

1H ENI reduction on pace to achieve lower Y/E target

9

Dispositions ($ in billions) ’08

Sales

ENI

Corporate Card

$1.3

1Q

Office Imaging

0.5

2Q

Partnership Marketing Group

0.4

2Q

Japan – Personal Loans

5.9

3Q

Healthcare – Practice Solutions

0.8

4Q

3.4 $12.3

4Q

U.K. Unsecured

5.6

1Q

Austria

1.7

1Q

Finland

1.7

1Q

Australia Mortgage

1.5

1Q

Thailand Finance Co.

1.0

2H*

Philippines

0.2

2H*

Canada Mortgage

0.1

2Q

Germany Total

’09

Total

Buyer

Closed

Region

$11.8

Continuing disposition momentum * Signed, scheduled to close in 3Q/4Q

10

SG&A costs – Capital Finance Running with intensity

Focused approach

($ in billions) 2Q’09 YTD -a) $6.7

2009 estimate -a) $13.1

($1.9)

$4.8


Consolidating geographies, platforms and HQs

($3.8)

~$9.3

(28%)

• Restructuring continues

(29%)

• Attacking indirect spending
Consolidating roof-tops … down 180 from YE’08
Indirect costs down 36%

• Exiting and running-off underperforming and non-strategic platforms ex-FX

1H’08

1H’09

TY’08

TY’09

–

$5.1

–

$9.8

a) - Excludes Penske which was deconsolidated 1Q’09, acquisitions and corporate assessments

• Rigorous GE operating mechanisms

Now estimate $3.8B cost-out in ’09 …$0.6B more out since 3/19 update

11

Financial Services reform proposal • Treasury white paper issued on June 16 … outlines sweeping proposal - Fed as systemic regulator of Tier 1 Financial Holding Companies (FHC) - Consolidation of federal banking regulators - Conversion of thrifts & Industrial Loan Companies (ILC) to banks - FDIC-like resolution authority over failing FHCs - Consumer financial products commission • One of dozens of proposals in White Paper recommends separating non-financial from financial companies … ILCs, thrifts & others … 5 years to separate • Opposed to forced separation … not a cause of the crisis … affects important source of lending - Existing structures traditionally grandfathered - Reform should recognize diverse funding sources • Congress will now consider … long, complex process • GE supportive of systemic regulation … GE Capital anticipated & planned for  regulation • Executing plan for smaller, more focused GE Capital … nothing in proposal changes that


Financial services reform in very early stages
GE will continue to support GE Capital 12

Update from March 19th meeting Areas of interest

1H’09 loss update; Outlook

 Commercial Real Estate


 U.K. Mortgage

~Fed base case; HPI trending better … early

 Global banks and Eastern Europe

~Fed base case; Profitable

 U.S. Consumer

Better than Fed base case; Outperforming unemployment

 Total Losses/impairments


Capital adequacy and funding

Ratios strong and improving; Funding well ahead of plan

Other: – Investment securities – Associated companies – Goodwill

• Investment securities unrealized loss $2.0B lower • than 1Q • JVs performing, $126MM associated company impairment (Cosmos $110MM) • Goodwill tested 1Q; Annual update in 2H

1st half losses slightly below Fed base case 13

Agenda Funding & Liquidity

Kathy Cassidy – GECC Treasurer

Portfolio Quality & Reserves

Jeff Bornstein – GECC CFO

Business Reviews & Stress Testing – Overview

Jim Colica

– Real Estate

Ron Pressman

– Mortgage/U.S. Consumer

Mark Begor

– Banks and JVs

Bill Cary

GE Context

Keith Sherin – GE Vice Chairman & CFO

Q&A

14

Funding & Liquidity

15

GECS funding • Global debt markets recovering ... exiting government programs • Received FDIC approval for TLGP exit plan … new CP issuance will be non-guaranteed & TLGP LT debt remaining capacity will be ~$14B • ’09 long-term funding plan complete ($45B) … mid-way through ’10 plan ($18B of $35-$40B) • Issued $12B non-guaranteed debt … largest non-guaranteed issuer YTD • CP balance @ ~$50B as of 6/’09 … ahead of plan by 6 months • Strong GECC capital ratios … Tier 1 common ratio at 7.4% (2Q’09) vs. 5.7% (4Q’08) & leverage at 5.6 (2Q’09) vs. 7.1 (4Q’08) • Strong cash and liquidity position … $50B cash, $55B bank lines • Funding cost remains competitive

16

GECS funding through 2010 ($ in billions, ex-FX/SFAS 167) Comments

$515 FIN 46 TLGP - LT debt

~$500

6

~5

$509 13

• Will continue to shrink nonguaranteed LT debt through business assets reduction

~$450

~$495

~5

64

~$445

• Will continue to grow alternate funding sources

59 Non - g’teed LT debt

– Lower assets in U.S. banks driving lower deposits

369

321

– Proposing to add business platforms to ILC & grow direct origination (subject to regulatory approval)

270-280

Deposits/CDs/ Other

55

60-65

65-75

Comm’l paper

72

50

40-50

4Q'08

4Q'09E

4Q'10F

$37

$60+

Cash & equiv.

– Emerging market deposits  … CEE & Central America – Asset based funding … $1.4B Euro covered bonds issued in July ’09

• Will continue to maintain strong cash & liquidity position

$45+

17

GECS strategic funding plan ($ in billions, ex-FX/SFAS 167) 2009 - 2012

$515 Deposits/Others Fin 46 debt 6 LT TLGP Debt

55 13

(150)-(160)

$350-375 20-30

LT Debt

Comm’l paper

369

Cash, Insurance & Disc. Ops ENI

• Grow U.S. bank deposits

• LT debt issuance of $140-$150B vs. $270-$280B maturities

• Grow intl. bank deposits

75-85 ~5

230-250

• Grow asset based funding

72 4Q'08

Capital Finance ENI

• CP  to $40$50B

40-50 Wholesale funding

Alternate /biz. specific funding

4Q'12F

$525

~ $400

$43

$40-$50

Conservative + diversified funding 18

GECS strategic funding plan by year ($ in billions, ex-FX) Beginning cash balance Sources LT debt issuances – TLGP LT debt issuances – non-guaranteed Alternate funding Collections > originations Capital infusion from GE Total sources

’09E $37

’10F ~$63-68

’11F ~$45-60

’12F ~$40-55

52 15-20 5-10 40-45 10 ~127-132

– 20 5-10 25-30 – ~55

– 26 5-10 25-30 ~2 ~63

– 34 5-10 25-30 – ~69

(1) (22) ~(78) ~(101)

(5) 0-(10) (60)-(65) (65)-(80)

(20) – (40)-(45) (60)-(65)

(39) – (40)-(45) (79)-(84)

~$63-68

~$45-60

~$40-55

~$25-40

Uses TLGP LT debt maturities CP reduction Others incl. non-guaranteed LT debt maturities Total uses Ending cash balance

Notes: • Funding plan assumes outstanding commercial paper of $40-50B • Pre-funding : ’09 ($13.4B completed in ’08), ’10 (100%: ~$35-$40B in ’09), ’11 (50%: ~$20B in ’10) & ’12 (15%: ~$6B in ’11)







~2% of unsecured debt market Conservative plan to diversify funding TLGP maturity profile very manageable Maintaining strong liquidity position

19

GECC & GECS capital metrics Leverage -b)

TCE/TA ratio -a) ~8.1% 6.6% GECC

4.9%

6.9% 5.9

~6.9%~6.6%

GECS

5.6

5.6

GECC

7.1

5.9

6.0

1Q’09

2Q’09

Base Adv 4Q’09E

Base Adv 4Q’10F

5.6

7.4%

5.7% 6.5 6.3

~8.0%~7.7%

6.6

6.5

4.7

1Q’09

2Q’09

Base Adv 4Q’09E

1Q’09

2Q’09

Base Adv 4Q’09E

4.8

~5.7 5.2

Base Adv 4Q’10F

~7.7% 7.8

6.9

4Q’08

5.4

~5.1

• Strong tangible common equity ratios even in adverse case … well positioned relative to peer average

~9.0% 7.3%

4Q’08

~5.7 ~5.9

5.3

Tier 1 common ratio

GECS

6.4

3.9

4Q’08

GECC

7.7

6.9

5.9

5.4

GECS

~6.9%

Base Adv 4Q’10F

a) -Tangible Common Equity (TCE): Shareholders’ equity less goodwill & intangibles; Tangible Assets (TA): Total assets less goodwill & intangibles b) -Net of cash & equivalents with hybrid debt as equity ex. non-controlling interests

• Leverage commitments ahead of plan … GECC ~6:1 since 1Q’09 and can be maintained even in Fed adverse scenario • 2010 likely to be impacted by SFAS 167 requiring to account for securitizations on-book • 2010 adverse case Tier 1 common ratio well above 4% threshold defined by the Fed as part of SCAP

20

Portfolio Quality & Reserves

21

Summary losses and impairments ($ in billions)

Commercial portfolio - Real Estate –a) - Aviation and Energy

Original 3/19 update – TY’09 Original Estimated Fed Estimated Fed base case adverse case outlook

1H’09A

$0.7

$2.4

$3.6

$0.6

0.3

0.4

0.7

0.1

- Mid-market lease/lend

1.5

2.0

2.6

1.1

- Other Commercial

0.3

0.5

1.5

0.2

4.3

5.1

5.7

1.9

Consumer portfolio - U.S. - Non-U.S. Mortgage

0.6

1.2

1.6

0.6

- Other Consumer

1.9

2.2

2.7

1.3

Management planning Total –a)

1.0

–

–

~$10.6

~$13.8

~$18.4

– $5.8

a) – Equity impairment multi-year. ’09 revised view: Fed base case $1.6B, Fed adverse case $2.1B. Total revised view: Fed base case ~$13.0B, Fed adverse case ~$16.9B

22

Capital Finance portfolio quality Consumer

Equipment 30+ delinquency

11.80%

2.84% Delinquencies

8.47%

2.17% 1.48%

1.61% 1.46%

1.12%

10.56%

2.78%

2.45%

1.68% Non-earners

5.91%

7.79% 6.81%

Mortgage

9.22% 7.43%

2.27%

Non-earners

13.23%

8.20%

6.38%

4.34% 4.70%

5.47%

8.73%

Total 5.62% 6.02% 5.92%

4.13%

4.59%

2.50% 2.74%

2Q'08

3Q'08

4Q'08

1Q'09

2Q'09

2Q'08

3Q'08

Drivers

4Q'08

1Q'09

2Q'09

2Q'08

3Q'08

4.71%

3.33%

Total

Non-mortgage 1.29% 1.41%

Mortgage 4.19%

1.75%

2.16% 2.21% Non-mortgage

4Q'08

1Q'09

2Q'09

Drivers


Delinquency lower (6 bps.), improvement in Americas portfolio offset by slight increases in Asia & Europe
Non-earners +18 bps. vs. 1Q’09 ‒ Driven by senior secured loans … well collateralized
CRE non-earnings +166 bps. to 2.9% … delinquencies +178 bps. to 4.0%
Verticals steady


North America delinquencies down 14 bps. to 6.96% ‒ Better entry rates & improved late stage collection effectiveness helping delinquencies ‒ Non-earners balance flat to prior quarter … reduction in assets driving up rate
U.K. mortgage market continues to pressure overall metrics ‒ Delinquencies +30 bps. … non-earners +21 bps.
Global banking delinquencies +1 bp.

As expected … tough environment 23

Portfolio overview (as of 2Q’09) % of total portfolio Asset type

GE

Banks*

Consumer Commercial

31% 69%

64% 36%

U.S.

38%

86%

U.S. consumer - Cards - Mortgage - Auto - Student loan - Sales Finance/other

7% 3% 0% 0% 0% 4%

58% 9% 40% 1% 1% 7%

• Reserves adequate for losses incurred • Reserves in line with large banks for comparable asset classes (mix) • Resolution of non-earnings performing as expected • U.K. Mortgage: Collateral realization strong

* Weighted average of top 4 U.S. money center banks @ 4Q’08

Portfolio composition very different from top banks

24

Capital Finance reserve coverage ($ in billions) $6.6 Allowance for losses Comm’l.

$5.3 1.7

$5.7

17 mos. write-offs in reserves*

2.5

Commercial
Reserves increased by $0.5B in 2Q’09 … coverage rate to 1.13% – Coverage at RE +37 bps. to 1.24% – Strong collateral will lead to ultimate loss significantly below non-earners

2.0 8 mos. write-offs in reserves*

Consumer

3.6

3.7

Consumer

4.1


Increased coverage to 2.91%
U.S. Card & Sales Finance – Coverage rate steady at 6.6% – Reserves/non-earnings 192%

Reserve coverage

4Q'08

1Q'09

2Q'09

1.42%

1.59%

1.81%


Mortgage – Coverage rate  44% to 1.32% – Reserves/non-earnings 17% – Average LTV at origination 75%

* 2Q’09 write-offs annualized/2Q’09 allowance

Reserve coverage +$0.9B, +22 bps. vs. prior quarter 25

U.S. financing receivables vs. top U.S. banks ($ in billions, as of 2Q’09) U.S. Consumer - (a - U.S. credit cards - Residential mortgages - Sales finance/other U.S. Commercial - Real Estate debt b) - Real Estate construction - Commercial loans c) - Commercial leases

Total

GECC

Top banks average

Reserve % Receivables coverage Portfolio

Reserve % Receivables coverage Portfolio

$10.1 none 14.9

6.83%

25.0

6.57%

27.6 0.6 27.1 37.7 $93.1 $118.1

6.18%

8%

Top banks coverage GECC asset composition

10.3% 3.3% 3.3%

7% 43% 8%

10.3% x 10.1

13%

$178 1,011 285

21%

1,474

4.5%

62%

6.11%

1.47% 4.46% 1.84% 1.30%

23% 0.5% 23% 32%

43.1 13.1 229.3 22.4

0.67% 9.37% 1.35% 1.14%

17%

0.67% x 27.6 9.37% x 0.6 1.35% x 27.1 1.14% x 37.7

1.53%

79%

$914

2.18%

2.60% 100%

$2.4T

3.60%

27% 38%

3.3% x 14.9

1.12% 2.17%

U.S. reserves in line a)- Consumer data avg. of Top 3 Banks b)- Real estate data source Top 5 Bank as of 4Q’08, loss coverage est. split construction vs. non-construction c) - Commercial loans and leases data source Top 5 Bank

26

Non-earnings Coverage walk ($MM)

Capital Finance 3.59% 2.80%

Non-earnings % financing receivables

1.53%

ex-FX $12.1B

1.73%

$13.0B $10.0B 6.6 $8.0B

$7.3B $6.1B

$6.5B

5.5

$5.4B 4.6

4.2

Consumer 3.7

Commercial 1.7 4Q'07

4.8

4.7

1.9

1.9

1Q'08

2Q'08

4.5

3.2

4Q'08

1Q'09

78.1%

70.8% 69.4%

63.4%

66.6%

57%

0.4

–

0%

(2)

Real Estate

0.8

0.2

23%

(2)

Mortgage

1.0

0.3

30%

(2)

Comm’l lending & leasing

0.7

0.4

48%

–

–

(0.1)

n/a

(1)

0.1

0.2

129%

$13.0

$6.6

Banks and non-mortgage

1 51%

2Q'09

Non-earnings coverage % Total

$5.7

Interbanca

2Q’09 3Q'08

$10.0

Non-earners coverage %

Walk

U.S. Consumer 6.4

2.5

Reserves

1Q’09

2.13% 1.41% 1.47%

Nonearners

56.9% 50.5%

• U.S. Consumer non-earning flat; reserves  due to  in 30+ and  collection effectiveness on 90+

27

Non-earnings definitions 1 2

100% recovery

Non-earnings: Receivables 90 days or more past due (or where collection has become doubtful)

2

100% recovery: 100% collateral coverage

3

3 Workout/ cure

4

6

Remaining collateral/ Mortgage insurance

5 Non-earning

1

Exposure after full recovery

Est. loss exposure

Workout/cure: In active restructuring/ negotiation with our customer (often timing/technical default issues) … expect full recovery

4

Remaining collateral: Recovery based on enterprise values, liens on assets or other sources of recovery (guarantees, etc.) but less than 100% collateral coverage

5

Mortgage insurance: Partial recovery of loss on sale of assets from insurance

6

Estimated loss exposure: Exposure at risk in excess of collateral

28

Non-earnings coverage 2

4

3 100% recovery

Collateral on remaining exposure

Workout/cure

• 100% collateral recovery

• Accounts in active restructuring/negotiation

• Typically no specific reserve required

• Typically requires a specific reserve to cover collateral gap

• Typically no specific reserve required

Example

Example

Example

Company “A” • U.S. retailer • ABL facility – A/R + inventory • GE commitment $150MM • Filed bankruptcy 3Q’08 • Business sold 3Q’08 • GE fully recovered outstandings

Company “B” • U.S. real estate industry • Senior-secured loan • $13MM non-earning @ 12/’08 • Property value $20MM+ • Loan restructured at higher pricing and enhanced foreclosure rights in 2Q’09

Company “C” • U.S. home security industry • Corporate loan • $34MM non-earning @ 12/’08 • $10MM specific reserve • Business sold and proceeds of $25MM received in 2Q’09

29

Commercial non-earnings ($ in billions) March 19 presentation (p. 159)

Non-earnings roll-forward

Non-earning reserve coverage ($ in billions)

Commercial $3.2

100% recovery Loss in recovery/ workout Collateral on remaining exp. Est. loss exposure

1.1 228% coverage

0.5 100% recovery

$1.7

0.8 Loans in recovery/ workout Exposure Expect full recovery

4Q’08 Non-earning

0.8

Collateral value on remaining exposure

Estimated loss exposure

Balance Remaining @ 4Q’08 @ 2Q’09 ∆ $1.1 $0.5 ($0.6) 0.5

0.4

(0.1)

0.8 0.8 $3.2

0.5 0.4 $1.8

(0.3) (0.4) ($1.4)

4Q’08 Reserves

159

2Q’09 composition Bankruptcy proceedings Customer paying Negotiation/restructure In process of liquidating collateral All other, net Paying customer

$0.4 0.5 0.3 0.3 0.3 $1.8 (0.5) $1.3

Real Estate EFS GECAS CLL

1H reduction $0.1 0.2 0.2 1.3 $1.8

• • • •

Business Prop. loans Semgroup Balli Loans and leases

Payoffs/payments Cured Foreclosed/recovery Write-off

$0.6 0.2 0.2 0.4 $1.4

• $3.2B reduced to $1.8B • Estimate $400MM remaining loss exposure 30

2Q’09 non-earning exposure walk ($ in billions)

Commercial $6.4

(1.5) (1.2) 100% recovery

(0.4) Loans in recovery/ workout

$3.3

Interbanca loans @ FV

$2.5

Expect full recovery/ cure

1.4 Collateral value on remaining exposure

2Q’09 Non-earning 1Q’09

$4.5

173% coverage

(1.9)

Est. loss exposure

(1.4)

(1.0)

–

2.1

(1.2)

0.9

2Q’09 Reserves $2.0

220% coverage

Change in coverage driven by increase in Real Estate at lower loss given default

31

2Q’09 non-earning exposure walk ($ in billions)

$6.6

Consumer

(1.7)

$4.9

(1.5)

Nonmortgage

$3.4

$3.3 nonmortgage reserves

Cure rates

1Q’09

$5.5

173% coverage

4Q’08 30% 1Q’09 33% 2Q’09 31%

189% coverage

2Q’09 Non-earning

(0.2) Est. collateral value

Mortgage non-earnings (1.6)

(2.7)

Cure

3.9

(1.3)

2.6

(2.0)

Est. MI

(0.3)

0.5

$0.8

Est. loss exposure

2Q’09 Mortgage reserves

0.3

$0.5

162% coverage

Cure rates and collateral realization holding

32

U.K. Mortgage Real Estate Owned (REO) ($ in millions) 718

Houses sold

Trends

608

2,080

551

(# of houses)

1,116 982

Days to sell

986

1Q’09

126

159

2Q’09 123

831

711

Net recovery/(loss) before insurance

566

$6 4Q’07

4Q’08

1Q

2Q

3Q

4Q

1Q

2008

$4

2Q 2009

Realizable value of ending stock $332 Book value of ending stock Avg. inventory age

$315 79 days

($2) 4Q’08

1Q’09

2Q’09

a)- After mark of $36MM

Selling price Selling costs Proceeds to customer Book value - a) Sales recovery Insurance recovery Total

$95.3 (4.5) (5.3) 85.5 (79.7) 5.8 12.5 $18.3

Actual sales experience confirms methodology

33

Securitization accounting change ($ in billions) $47.1

$36.6 Consumer 15.3

Key amendments/impact 1• New guidance eliminates QSPE concept – Likely to result in consolidation of substantially all our QSPEs

Off-book

36.6

2– Adoption effective January 1, 2010 Commercial 21.3

3– Adjustment through retained earnings

(estimated ~$2B) … likely to be re-earned 4• Rating agencies already include in their

On-book retained interest

calculations 10.5* 5• 20 bps. estimated Tier 1 common impact 2Q’09

@ 1/1/10

* Includes Fin Rec $3.0B, Inv. Sec. $7.5B

34

Business Reviews & Stress Testing

35

Overview

36

Stress testing approach 2010 Bottoms up – asset by asset, business by business • Base case is business teams’ assumptions on losses and impairments • Under Fed “Adverse” Case assumptions: 10.3% avg. unemployment, 10.7% peak unemployment (implied), 0.5% GDP growth

Consumer • Mortgages, credit cards, auto, personal loans and sales credit financing – By product, by geography – market specific macro assumptions for non-U.S. markets based on 3rd party or regulatory guidelines – Consistent methodology applied across product types globally

Commercial • Commercial Loans and Leases: Stress probabilities of default, recovery rates • Commercial Real Estate: By market and property type • Commercial Aircraft: Valuation by equipment type • Energy loans and leases: Stress obligor ratings, increase severity, based on outlook

37

Commercial loans and leases – stress testing ($ in millions)

Key drivers:

Macro • GDP, unemployment

Portfolio • Senior diversified positions

• Liquidity

• Borrow leverage • Sector diversification • Asset value of collateral

2010 stress - key assumptions Fed Adverse

GDP

0.5%

U/E avg.

10.3%

Defaults

• Two-year cumulative default rate of 15%

Severity

• Increased model LGD’s by 25%. Higher for certain products (e.g., Corporate Air)

2010 stress – credit costs Portfolio

4Q’09 est. fin. rec. ($B)

Americas equipment $41 Leveraged loans 40 Franchise finance 9 EU equipment 9 Asia Pacific 15 U.S. asset-based loans 9 All other 42 Total $165

Base

Loss rate %

$458 743 94 181 214 73 203 $1,966

1.1% 1.9 1.0 2.0 1.4 0.8 0.5 1.2%

Loss Adverse rate %

$642 1,093 182 320 300 122 481 $3,140

1.6% 2.8 2.1 3.4 2.0 1.3 1.2 1.9%

38

Losses and impairments outlook ($ in billions) 2009 –a) Estimated Estimated base case adverse case Commercial portfolio - Real Estate Credit costs Impairments - Aviation and Energy - Mid-market lease/lend - Other commercial Consumer portfolio - U.S. - Non-U.S. mortgage - Other consumer Total

2010 Estimated Estimated base case adverse case

$0.9 0.7 0.4 2.0 0.5

$1.0 1.1 0.7 2.6 1.5

$0.5 1.4 0.2 2.0 0.5

$1.4 1.5 1.0 3.1 1.0

5.1 1.2 2.2 ~$13.0

5.7 1.6 2.7 ~$16.9

4.8 0.7 2.1 ~$12.1

5.0 1.3 3.2 ~$17.5

a) – Adjusted for Real Estate equity impairments

39

Real Estate

40

Real Estate overview
Economic fundamentals remain challenging – Global recession (unemployment ) – Limited liquidity (~90% drop in transaction levels from peak)


GE Capital Commercial Real Estate different from bank model – – – – –

Debt portfolio 95% senior secured positions Very limited construction and development 87% wholly owned equity assets Equity asset business plans to maximize shareholder value 1,900 employees, 1,100 in asset/risk management


Operate the business with intensity – – – –

Strong and consistent debt underwriting and collateral valuation Debt portfolio remains secure at 81% LTV and 2.4x DSC Each equity investment an operating unit … business plans to maximize NOI Equity performance consistent with 12/’08 expectations

Tough market, running business with intensity 41

1H’09 performance 1H’09 dynamics

Financials Assets ($B) Net income ($MM)

$90.6

$84.0

Levers ($MM)

Original outlook Actuals Status


NOI

$960

$740

$794

$402

$342

$71

$35

$920

$1,229


Occupancy

81%

80%


Leasing

12.0

11.8

(pre-tax)


Margin Gains

(net)

925

($410) 35

Core

510

Depreciation/ losses

(475)

357


Gains (net)


Depreciation/ losses (pre-tax)

(802)

1H’08

1H’09

(MM sq. ft.)

Volume ($B)

$14.9

$1.0

42

Debt portfolio @ 2Q’09 Debt structure ($46B)

Delinquency trends

(% o/s)

8.4%

7.0%

Sub-debt

Owneroccupied 18% 5%

>90% LTV + <1.2x DSC –a)

$5.4B

3.9%

3.7%

Singles 26%

Banks* (ex-const.) GE 4.0%

4.5%

4.5% 3.6%

Delinquent 17%

83%

Crossed portfolios 51%

• 95% senior secured • 81% current LTV; 2.4x DSC –a)

2.6%

Current pay

1.8%

1.7%

• 81% matures 2010+

1.2% 0.3%

0.6%

1Q'08

2Q'08

3Q'08

4Q'08

$87 0.64% 0.41%

2.2%

1Q'09

2Q'09

$110 0.87% 1.22%

$234 1.24% 2.88%

* Source: 2Q’09 Foresight Analytics, all other FFIEC

2Q delinquency at $1.9B

Non-earnings walk ($ in billions)

4.0% Delinquency by class

2.2%

2.1%

0.4%

Credit costs ($MM) Reserve % Non-earnings %

a) - Excludes $8.5B owner occupied and $1.0B other debt balances

Banks*

5.4%

• Apartment • Hotel/retail

9.8% 3.7%

• Other

2.4%

$1.3

($0.1)

Reserves 305% of exposure at risk

($0.3) ($0.7)

$0.6 $0.2

1Q’09

2Q’09

N/E

Collateral 100% recovery

Workout Other Exposure full collateral at risk recovery

Reserve

43

Debt maturities YTD actions on ’09 maturities $6.0

($0.4)

($1.7)

4.0

1H’09

2.0

Maturing 2H’09 Exposure  Safety 

3/19

7/28

% of total

Collect

$2.5

$1.7

29%

Extend

$3.3

$3.5

58%

3.5

Foreclose

$0.2

$0.8

13%

0.3 Pending

Total

$6.0

$6.0

($0.1) Extend

Estimated result

$3.8

Collect

2H’09

2009 maturities update ($ in billions)

($ in billions)

Foreclose

Extensions

Foreclosures

Senior crossed mortgage on pool of hotel assets

3 apartment complexes

• Strong deal structure includes 8% cash on cash extension hurdle • 3rd party mezzanine cancelled • Senior paid down • LTV from 60% to 51% • 15% principal reduction

Matured 12/’08 Exposure  Margins 

• Foreclosed 1/’09 • 78% occupied • Installed strong operator • Invested in maintenance • Occupancy up to 85% • ~25% NOI increase

44

Equity portfolio @ 2Q’09 Asset class ($33B) Warehouse 12%

87% wholly-owned

Other RE 5%

Retail 10%

Office 50%

Hotel 1% Mixed 5% Parking 3%

Top markets: 1. Paris 9% 2. Tokyo 8%, 3. Chicago 4% 4. San Diego 3% 5. London 3%

• 97% existing properties • 3% development

Other 2%

• $11MM average investment

Owned RE 87%

105. New York <0.1%

Apartment 14%

Property income Yield 5.7% 5.4%

$1.5

2Q–a)

3/19

3/19

JV 11%

Occupancy-b)

NOI $1.6

2Q-a)

• Yield  driven by strong NOI • Each asset a small business with multiple performance levers a) - 2Q’09 annualized

81%

80%

1Q’09

2Q’09

• Leased 11.8MM sq. ft. YTD (8.5MM renewals; 3.3MM new leases) b) - Excludes multifamily, hotel, parking, & Mexico JV assets

45

Equity unrealized loss update ($ in billions, pre-tax) 2Q’09 unrealized loss at $5B

Unrealized loss by vintage ’08+

Owned RE ($3.8) JV/other ($1.2)

($0.3) ($3.7)

’07 ’06

• For owned properties, per U.S. GAAP we must state at depreciated cost, subject to impairment testing

Unrealized loss $1.0B vs. year end ’08 YE’08

2Q’09

Americas

(3.1)

(3.2)

Asia Europe

(0.5) (0.4) ($4.0)

(0.6) (1.2) ($5.0)

<=’05

($1.3) $0.3

Dynamics • Eurozone macro environment projected deterioration drives rental/occupancy decline …  $0.8B in unrealized loss • Limited update impact on Americas … economic forecasts had incorporated significant deterioration • Cap rates appear to be stabilizing in some markets

46

Stress test update ($ in billions, pre-tax) Unrealized equity loss over time (est.)

Loss views 2009E-b)

Depreciation/potential impairment-a) $1.0

Base case

$0.0

2010F Adverse Base Adverse case case case-c)

$2.9

$2.6

($5.0) Current loss estimate

$2.1

$1.4 2H’09E

’10F

’11F

Static 2011 YE view

• Goal to outperform Fed adverse losses through strong property level execution • Highly experienced global team focused on maximizing asset values

Equity Debt

$0.5 1H’09

Unrealized equity loss (After impairments) Implied loss on affected assets

(5.0)

$1.6 0.7

1.1

0.9

1.0

$1.9 1.4

1.4 0.5

3/19 (4.7)

1.5

7/28 (5.9)

(5.0)

(7.7)

n/a

(4.0)

(4.8)

(3.1)

(5.1)

26%

28%

31%

26%

34%

b) - Owner occupied reported separately ($0.1B) c) - Amounts derived from current estimate

a) - Fed adverse case







Macro environment continues to be challenging We are committed to providing investor transparency Losses will materialize over time, should outperform peers Results remain manageable for GE Capital and GE 47

Mortgage/U.S. Consumer

48

Global Mortgage – 1H’09 performance Assets ($B)

90+ delinquency

Down $19B … 24%

$81

15.8%

16.0%

12.0% 10.0%

7.8%

8.0%

Total

6.0%

2Q’08

2Q’09

8.5% Delinquency-a) Reserve coverage-a) 0.4%

13.2% 1.3%

4.0%

0.0% Dec '07

+ ~$195 vs. Base stress

Credit costs

1H’09

0.2%

1.9%

a) - % of Receivables b) - Top 4 markets

Base stress

Adverse stress

~2.4%

Jun '08

Sep '08

Dec '08

Mar '09

Jun '09

98% paid claims rate

~3.1%

Indexed LTV & insurance coverage -b)

62% A/A+

+ ~$345 vs. Adverse

1H’08

Mar '08

Portfolio quality

($66) ~($260) ~($410)

-a)

2.4% Australia 1.6% France 0.5% Poland

2.0%

Net income ($MM) $553

U.K.

14.0%

$62

69% with MI

A/A+

61%

62%

>80% LTV

49%

50%

B

21%

20%

<80% LTV

51%

50%

C/D

18%

18%

4Q’08

2Q’09

4Q’08

2Q’09

Overall portfolio performing … 1H net income better than base case 49

U.K. Mortgage – 1H’09 performance HPI stabilizing … 1H’09 -2%

Assets ($B) $29

$23

Down $6B … 21%

(6.1%) (12.4%) (16.2%) (17.5%) (15%)

(10%)

HPI (YoY change) 2Q’08

2Q’09

Delinquency-a)

17.5%

25.9%

Reserve coverage-a)

0.4%

2.5%

Net income ($MM)

2H’09 (8%)

Implies (35%) peak to trough 2Q’08 3Q’08 4Q’08

1Q’09

2Q’09

’09E

’10F

Delinquencies rising with unemployment DQ%

$284

(5%)

1H (2%)

U/E% U/E % Est.

30%

8.0%

9% 8%

($220) ~($285) ~($335)

25%

25.9% 20%

7% 6%

U/E % (RHS)

5% 15%

1H’08

1H’09

Base stress

Adverse stress

30+ (LHS)

0.1%

a) - % of Receivables

4.4%

~5.3%

~6.0%

4% 3% 2%

90+ (LHS)

5%

Credit costs-a)

15.8%

10%

1%

0%

0% Dec '07

Mar '08

Jun '08

Sep '08

Dec '08

Mar '09

Jun '09

House prices stabilizing … out-performed Stress scenarios 50

U.K. Mortgage ’09-’10 Stress scenarios ($ in millions) Portfolio overview ($22.7B) –a)

2009/2010 stressed scenarios 2009E

B 37%

Credit distribution

C 25%

(internal GE Scores)

Key assumptions

Base

Adverse

1H’09A

Base

Adverse

Credit cost $

$995

$1,125

$472

$530

$800

Credit cost %

4.8%

5.4%

4.4%

3.1%

4.6%

Unemployment (average)

8.5%

9.0%

7.4%

10%

10.5%

29%

35%

9%

10%

25%

Peak to trough 43% (home price change)

48%

28%

42%

54%

D 12%

A 20%

A+ 6%

–b)

17% >100% ‘08<80% 28% Pre 2007 38% 49% 2007 90-100% 80- 34%

Indexed LTV distribution

17%

Home price change

90% 17%

a) - Financing receivables b) - 87% mortgage insured

2010F

Aggressive REO, loss mitigation & collections actions producing results 51

Retail Finance – 1H’09 performance Net income ($MM) $261

$252 $73

Key actions

+245% V plan & $541 V adverse

1

Raised cut-offs & tightened approvals Avg. FICO

Previous Year Current Year

728744 730

$(289)

1H’09 plan

1H’09 act.

1H’09 adverse

2

$53.1

$(3.6B) V plan & $(5.2B) YoY

$49.5

2Q’09 plan

2Q’09 act.

Feb. ’09 June ’09

Revolving $1,610 $1,581 $990

Oct. ’08 Feb. ’09 June ’09

Sales Finance

(41%)

$5,059 $4,953 $3,984 $3,877

Feb. ’09 June ’09

Risk adjusted open to buy ($B) $372

4

(23%)

$932

Feb. ’09 June ’09

3

’07

2Q’08 act.

53.4 48.3 51.3 46.7 52.446.6

Controlled credit lines

Served receivables ($B) $54.7

Approval rates % (575 bps.)

+20 FICO

730 750

Avg. U.S. FICO: 693

Oct.’08

1H’08 act.

768

$41

New Volume

($200)

’08 Red.

($215B) $213

($15)

$198

’08

Net 1H Red.

2Q’09

Increased collections intensity … Collectors per DQ accounts up 15% vs ’08

Strong 1H’09 performance … $179 above plan & $541 above stress 52

Disconnected from historic U/E trend ($ in millions) Delinquency – U/E correlation 80% 60%

1H’09 credit costs

Underwriting & line management actions

100%

Historical ratio (U/E:charge-off) 1 : 1.1

($362) V adverse

U/E

$2,042

Favorability 90+

$1,681

$1,680

341

416

1,340

1,264

'09 plan

'09 actual

40%

30+

602

$1,067

20%

Reserve change

327

Charge-off

740

0%

1,440

Jun-09

Mar-09

Dec-08

Jun-08

Sep-08

Mar-08

Dec-07

Jun-07

Sep-07

Mar-07

Dec-06

Jun-06

Sep-06

Mar-06

-20%

'08 actual

Entry rate at historic lows

'09 adverse

(169 bps.)

11.06% 11.17% 10.80% 10.83% 10.15% 10.46% 9.95%

Loss AFR Coverage

4 yr. avg. 10.94%

8.07% 3.20%

12.38% 5.82%

13.05% 6.12%

15.05% 9.14%

9.25%

2Q '06 4Q '06 2Q '07 4Q '07 2Q '08 4Q '08 1Q'09 2Q'09

’07/’08 risk actions paying off … DQs not growing in line with U/E 53

’09/’10 stress scenario – U.S. Consumer Portfolio overview ($30.8B) A 17%

D 14%

’10 Retail Cards $14.0B Credit distribution (internal GE Scores)

A 24% B 17% A+ 37%

2009E

B 21% C 12%

A+ 36%

2009/2010 stressed scenarios*

C 11% D 11%

’10 Retail Sales Finance $16.8B

2010F

Base

Adverse

1H’09 actual

Base

Adverse

Credit cost ($ in millions)

$4,746

$5,277

$1,680

$4,583

$4,836

Credit cost % (% period AFR)

17.23%

19.16%

13.05%

16.24%

17.14%

Unemployment (average)

8.4%

8.9%

8.7%

10.2%

10.3%

Recovery rate (Cards)

7.2%

6.0%

6.4%

5.3%

4.7%

Recovery rate (Sales Finance)

6.6%

5.9%

6.9%

7.0%

6.4%

Key variables

* Retail Sales Finance and Retail Cards only

Credit distribution (internal GE Scores)


1H’09 performance favorable vs. plan & stress scenarios
Early and aggressive risk actions paying off
Well positioned for challenging U.S. consumer environment

54

Banks and JVs

55

CEE Bank update ($ in millions) Net Income

Diversified product portfolio

$501

$20.2B 2Q’09 receivables (%) 9%

4% 20%

Mortgages

Personal Loans

40% 22%

SME

5%

A+ 51% A 17% B C

17% 9%

D

6%

Cards

Credit performance Delinquencies 4.17% 30+% 90+%

+$47MM vs. plan

Sales Finance

Auto

2.48%

2.89%

0.76%

1.02%

$240

Assets ($B) Deposits ($B) Loss/ANI %

1H’09

$32.9 11.2 1.48%

$27.7 12.1 2.76%

VPY% V ex-FX (16)% 12% 8% 40% 128 bps.

• Adjusted originations:
Mortgage originations 83% and Auto originations 66%
Higher grade credit originations only

Stress loss summary

1.63%

2Q’08 3Q’08 4Q’08 1/’09 2/’09 3/’09 4/’09 5/’09 6/’09

1H’08

’09 base $716

’09 adverse $1,043

1H’09A $344

’10 base $573

’10 adverse $949

Tough economic environment … but strong franchises

56

GECC JVs and partnerships (Associated companies) % Ownership

Investment

2Q’09 Inv. ($B)

1H’09 GE earnings

Strategic rationale/Performance comment 21 year partnership; strong brand/franchise

Penske Truck Leasing

50%

$6.1

+

Hyundai – Korea

43%

3.5

+

Performance above plan; gaining market share

Garanti Bank – Turkey

21%

2.2

+

#3 bank in Turkey; strong margins and loss performance in 1H’09

Bank of Ayudhya – Thailand

33%

1.2

+

#4 bank in Thailand; performing above plan

CAMGE – Spain

50%

0.9

+

Profitable YTD with lower costs and better loss performance

GE Nissen – Japan

50%

0.8

+

Challenged but performing

Dogus GE BV – Romania

50%

0.5

–

Banking start-up partnership with Dogus/Garanti in Romania

Colpatria – Colombia

50%

0.4

+

Performing above plan

AsiaSat – Hong Kong

37%

0.3

+

Steady performance in ’09

Cosmos Bank – Taiwan

23%

0.2

–

Remains challenged, performance improvement in 2Q from lower costs; $110MM 1H impairment recorded

EFS project investments

Various

6.5

+

Structured equity in energy producing projects; performing to plan

Others

Various

3.1

+

~60 small partnerships; ~$55MM avg. investment; $16MM 1H impairment recorded

Total associated companies

$25.7


Solid strategic rationale – Market entry into emerging markets – Partners bring distribution, domain and capital

57

Summary 1

2

Today

Environment remains challenging – GECC is prepared – Strong funding/liquidity actions and plans

Restructuring 15%

Granular view of stressed losses … working aggressively. Reserves are appropriate and in line with bank peers

Global banks 15%

3

Expect profitable 2009 … losses better than Fed base case, more cost-out

4

Intense focus on risk management, work-out and restructuring

5

Playing offense … originations/margins increasing

6

GE Capital business model robust … earnings rebound as the economy recovers

Core 55%

– Rigorous GE Capital asset management

Future 2%+ ROI

Global banks 15%

Core & verticals 85%

Verticals 15%

ENI

$540B

~$400B

• More focused GE Capital - competitively advantaged • Diversified portfolio and funding 58

GE Context

59

GE 2Q reported results vs. peers 2Q Highlights

Peer comparison 2Q V%


Cash flow ahead of plan … $7.1B
Aggressive cost out … $.06 EPS restructuring and other YTD

GE Infrastructure S&P Industrials

Flat


Infrastructure backlog steady at $169B

GE Capital


Services and global revenues strong

S&P Financials

(85%) (75%)


Margins holding from 1 year ago

NBCU Media peers

(41%)/(24%) - a) (42%)


GE Capital safe and secure

(35%)

a) – 2Q’09 estimated consensus

Execution through the recession and positioning for reset economy

60

2009-2010 capital adequacy 1• $15B equity raise in 2008 has significantly strengthened capital ratios

• GECC Tier 1 Common

3Q’08 5.1%

2Q’09 7.4%

Minimum required 4%

Capital buffer $20B

2• GE Capital is profitable and increasing its tangible equity through 1H • 2008 Tangible equity + Capital injection + Earnings + CTA/OCI/Goodwill • 2009 1H tangible equity

$30B +9 +1 +1

$11B increase $41B

3• Income maintenance agreement may require additional payments to GECC Contractual test dates Potential for prior year requirement $0 • January 2010 • January 2011

~$2B base ~$7B adverse

Capital ratios strong and improving 61

Strong Industrial cash flows available ($ in billions)

CFOA GECS dividend

$9.3 2.0

Industrial

7.3

2009 – 2010 cash & other V% $7.1

(24%) (3%)

2Q Industrial cash balance

$3

2009/2010 dividend savings

$13

Additional sources:
Asset sales (Homeland, ANZ Mortgage, Thai Finance)

2008

2009


1 turn improvement in wc = $5B


Demonstrated ability to manage collections/originations ($40B+ in 2009)


Working capital improvements $2.3B more than offset progress collections ($.7B)


Further ability to monetize assets or assume some liabilities

Sufficient internal cash flow to support GE Capital if needed

62

Key Messages • Funding and liquidity are in great shape – 2009 complete, ~45% of 2010 funding complete, exiting TLGP program – $50B of cash and CP at $50B is six months ahead of schedule

• Our reserving is adequate and compares to banks when adjusted for mix – Our reserve coverage is increasing and compares well to ultimate expected loss – 1H nonearning experience supports our reserving assumptions

• 1H losses below Fed base case and overall cycle losses are manageable – 2010 loss scenarios could be similar to 2009 – Any additional capital needs at GECC are very manageable with industrial cash flows

• GE is committed to GE Capital business model – Investors can expect a conservative, focused and competitively advantaged GECC – Financial services “white paper” does not change our strategy

GE Capital executing well in difficult environment

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