GE Capital investor meeting agenda

Opening Keith Sherin – GE Vice Chairman & CFO

GE Capital Overview Mike Neal – GE Vice Chairman & GECC CEO
Funding & Liquidity Kathy Cassidy – GE Treasurer
Portfolio & Risk Management Jim Colica – GECC Chief Risk Officer
Business Reviews & Stress Testing
– Real Estate Ron Pressman, Stewart Koenigsberg & Jayne Day
– Commercial Lending & Leasing Dan Henson & William Brasser
– GECAS Henry Hubschman & Anne Kennelly-Kraky
– U.S. Consumer Mark Begor & Ray Duggins
– Mortgage Mark Begor & Ray Duggins
– European Banks Dmitri Stockton & Denis Hall
Break Lunch
Operations Update Bill Cary – GECC COO
Financial Update Jeff Bornstein – GECC CFO
GE Capital Summary & Outlook Mike Neal – GE Vice Chairman & GECC CEO
Closing Keith Sherin – GE Vice Chairman & CFO
Q&A
GE Capital
Investor Meeting
March 19, 2009
Caution Concerning Forward-Looking Statements: "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; 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
9 Running GE to be safe and secure over the long term
‒ Liquidity position is extremely strong
‒ Completed 93% of our 2009 planned long term funding
9 Have sufficient capital and alternatives to weather adverse
economic conditions
9 Running GE with intensity
‒ Resizing our cost footprint in a meaningful way
‒ Management team is focused on delivering cash
‒ Continuing to invest/position company for long term growth
9 We expect GE Capital will be profitable in 1Q’09 and 2009
9 We are committed to GE Capital

GE will come out of this cycle a stronger, more

focused and competitively advantaged company

1
GE: safe & secure
Dividends/share Yield @ today’s price
82¢
1 Reduced dividend … ~4%
40¢
~$9B in annualized
savings 2009 2010 2009

GECC tangible common

GECC leverage-a) equity/tangible assets

7:1
~6:1 ~6.0%
2 Infused equity into 4.9%
GE Capital
4Q’08 1Q’09E 4Q’08 1Q’09E

’09 long term funding needs GE cash

~$45B $48B
3 Strengthened liquidity $42B ~$41B

(a- net of cash and equivalents and with

classification of hybrid debt as equity TY’09E Completed 4Q’08 1Q’09E
to date

Ratings update
9 Concluded rating review with S&P
– Detailed GE Capital updates on liquidity, funding,
business model, risk assessment & capital levels
– Industrial assessment (2009/2010) on revenue, margins
& cash flow

9 S&P rated GE & GE Capital at AA+ with a stable outlook:

– This rating means “very strong capability to meet its
financial commitments” and “rating is unlikely to change
in next six months to two years”

“The ratings on GE continue to reflect our view of its excellent

business risk profile, its significant cash flow and liquidity, its
strong corporate governance, and management’s commitment to
maintaining a very high credit quality” – S&P, March 12, 2009

2
GE Capital structure
General Electric
Support Company
• GE support to ensure GECC 1.1x fixed-charge AA+/Aaa 100%
coverage ratio
Owns all of
• GE TLGP FDIC backstop GE’s financing
General Electric
• Infused $15B & reduced dividend from GECS assets
Capital Services, Inc.
• History of capital infusion or dividend
reductions when necessary 100%

General Electric Capital

Corporation
Primary GE Issuer/Guarantor
Operating businesses AA+/Aaa 100%
(Capital Finance)
Commercial Energy
Consumer
Lending & Real Estate GECAS Financial
Financing
Leasing Services

GE Capital
overview

3
2009 outlook
Environment
• Difficult market with many macro-economic indicators
still deteriorating

• Pockets of increased liquidity for consumers and mid-

market businesses

• Industry losses continuing

• Delinquencies and non-earning assets pressured in both

Consumer and Commercial

• Very difficult to execute asset sales in today’s market

– TALF may help

GE Capital business model

Financial Services value chain

“Factory”
GE Advantage: “Origination”
“Raw material”
(capital) GE Advantage:
9 Low cost 9 Treasury
GE Advantage: 9 Global position
9 Risk 9 Asset Mgmt. 9 Brand
Competitive cost
9 Talent 9 Tax 9 Domain expertise

Pre-crisis competitive position:

+ Scale ++ Margins and results > banks + FinCo +++ Brand/domain

9 GE Capital has performed for decades

9 Will reposition for long term success

4
GE Capital portfolio
GECC
Business 2008 Financials Domain + expertise
Assets Net income
Commercial • Entered in the 60’s
• ~100% secured loans and leases
Loans & Leases $230B $1.7B • Support mid-market customers

Real Estate 85 1.2 • Entered in the 70’s

- Debt • Secured loans against diversified properties
• Own/operate high quality properties
- Equity
Consumer 183 3.7 • Entered in the 30’s
- U.S. PLCC • Store cards and sales finance for retailers
• Broad spread of risk
- Global
• Entered in the 60’s
Aviation Services 49 1.2 • GE domain
• Broad product set with full life cycle management

• Entered in the 80’s

Energy Fin. Services 22 0.8 • GE domain
• Essential assets; secure cash flows

Businesses we know … decades of performance

GE Capital: our approach

What we do
+ Senior secured financings
+ Diversified portfolio
+ Operate assets … global remarketing capabilities
+ Underwrite to hold
+ Restructure/work out problem loans/assets
+ Small hold positions
+ Match fund

What we don’t do
9Did not originate CDOs, SIVs, etc.
9Did not sell credit default insurance
9Do not trade securities … Minimal MTM in up or down cycles
9Do not originate mezzanine or high yield debt/bonds

10

5
GE Capital has a strong franchise
One of the few liquidity sources in 2008 Estimated U.S. market position
• $86B of new financings to global companies, • Middle Market Commercial Lending #1
infrastructure projects and municipalities
• Equipment Lending/Leasing #1
• $177B credit extended to global consumers • Middle Market Corporate Finance #1
• Have continued to support virtually all major • Aircraft Financing #1
U.S. airlines and auto companies with
financings as they work through cyclical • Healthcare Financing #1
issues • Energy Financing & Project Financing #1

• Leading DIP/Bankruptcy lender for • Fleet Leasing #1

restructuring U.S. companies
• Franchise Finance #1
• Global leader in mid-market commercial • Commercial Real Estate Lending Top 3
lending
• Dealer Financing #1
• Provided $6B financing to support global
energy projects • Private Label Credit Cards #1

Core is strong + competitively advantaged

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Portfolio strategy
Forward Ending net
return Core Competitive investment
dynamics competencies outlook ’09 outlook ($B)
Core
Core mid-market • Underwriting +++ $356
lending + leasing 2-5% ROI • Direct origination - Likely fewer FinCo’s
Grow
+ verticals • Asset mgmt. intensive - Fewer captives
• Re-marketing - Bigger banks long term
• Deep domain

GE Banking $64
European & • Enhance value via ++
Emerging Market 2-4% ROI product development - Strong local franchises
• Grow deposit base - Lots of options
Enhance
banks & JV’s value
• Operating synergies

Restructure $80
Various Consumer • Origination —
<2% ROI
& Commercial • Funding advantage - High leverage Restructure/
platforms - Tend to compete run-off
w/ banks

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6
Primary questions regarding GE Capital
n Commercial Real Estate
– What is in our portfolio and what is the corresponding risk?

o What is the risk in U.K. mortgage?

p What is the risk in Eastern Europe?
q What is the risk in U.S. Consumer?
r Losses/Impairments/Reserves
– Are our reserves adequate and how do they compare to other banks?

s Capital
– Does GE Capital have enough equity to handle future losses?

t Other investment securities, associated companies, goodwill

We will cover all of these questions today

13

Stress testing approach

Bottoms up – asset by asset, business by business
Large commercial exposures over $300MM stressed individually

Consumer
• Mortgages, credit cards, auto and personal loans and sales credit financing
– By product, by geography – market specific
– Consistent methodology applied across product types globally

Commercial
• 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
• Commercial Loans and Leases: Stress probabilities of default, recovery rates

14

7
Summary of stress testing
($ in billions)
2009 Est. Fed Est. Fed
Capital Finance outlook base adverse
Pretax pre-provision ~$13.3 ~$11.1 ~$9.2
Credit losses 9.7 11.5 13.7
Net income ~$5 $2.0-2.5 ~$0

2009 macro guidance

Avg. U.S. U/E 7.7% 8.4% 8.9%
Peak U.S. U/E 8.5% 9.3% 10.1%
U.S. GDP (1.8%) (2.0%) (3.3%)

Stress assumptions utilize Fed guidance and 3rd party forecasts

15

Key messages
9 GE Capital funding is 93% complete
and we have ~$60B capacity under
Federal programs
9 GE Capital is well capitalized and
compares favorably to banks
9 GE Capital is a conservative lender …
losses should be lower than banks
9 Real Estate equity valuation estimates
are comparable to other real estate
investors
9 U.S. Consumer credit losses
comparable to similar U.S. bank
portfolio performance
9 Adverse stress case losses of global
mortgage should be manageable
9 CEE Banks should be profitable even
in an adverse stress scenario
9 We are operating GE Capital with
intensity … Collections >originations,
lower cost, aggressive risk
management
9 We expect GE Capital will be
profitable in 1Q’09 and 2009
9 Have sufficient capital alternatives to
weather adverse economic
conditions
9 GE Capital has a profitable vision for
the future

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8
Agenda
Funding & Liquidity Kathy Cassidy – GE Treasurer
Portfolio & Risk Management Jim Colica – GECC Chief Risk Officer
Business Reviews & Stress Testing
– Real Estate Ron Pressman, Stewart Koenigsberg & Jayne Day
– Commercial Lending & Leasing Dan Henson & William Brasser
– GECAS Henry Hubschman & Anne Kennelly-Kraky
– U.S. Consumer Mark Begor & Ray Duggins
– Mortgage Mark Begor & Ray Duggins
– European Banks Dmitri Stockton & Denis Hall
Break Lunch
Operations Update Bill Cary – GECC COO
Financial Update Jeff Bornstein – GECC CFO
GE Capital Summary & Outlook Mike Neal – GE Vice Chairman & GECC CEO
Closing Keith Sherin – GE Vice Chairman & CFO
Q&A

17

Funding/Liquidity

18

9
GECS 2009 funding
• Global debt markets remain difficult for financial sector issuers ...
strong market demand for Government supported funding

• 93% long term funding complete ($42B of $45B) … considering

early funding of ’10 maturities in ’09

• Issued $5B non-guaranteed debt: 30 yr. USD & GBP

• CP balance @ ~$60B as of 2/09 … 100% covered by bank lines

• $15B capital infusion in 4Q’08/1Q’09 improves capital ratios …

leverage È … TCE/TA ratio at top-end of banks

• Strong cash and liquidity position

19

GECS funding
($ in billions)
$515
FIN 46 6 ~$485
~6 ~$450
$509 ~5
~$479
~$445

LT debt 382
348
320-330

Deposits/CD’s/ 55 81 85-90
Other
Comm’l paper 72 50 40-50
4Q'08 4Q'09E 4Q'10E

Bank lines $60 ~$50 ~$50

CP coverage 83% 100%+ 100%+
Cash & equiv. $37 ~$30+ ~$30+
LT debt<1 yr. $69 ~$67 ~$60-$65

20

10
GECS ’09/’10 Funding plan
($ in billions) ’09 ’10 Comments
Beginning cash balance 37 ~38
Sources
LT debt issuances 32-a) 35-40 93% of ’09 funding complete … lower ’10 planned issuances
… considering early funding of ’10

Alternate funding 26 4-9 CD's, Intl. bank deposits & other programs
Business originations/ 25 20-35 $205B collections/$180B originations in ’09
collections mgmt.
Capital infusion from GE 9 –
Total sources 92 60-80
Back-up liquidity
Uses
Cash / liquid assets
LT debt maturities (69) (67)
CPFF – unused capacity
CP reduction (22) 0-(10)
Total uses BOE/ECB/BOC facilities
(91) (67)-(77)
Bank lines
Ending cash balance ~38 ~31-41
(a. Ex-$13B funded in ’08

Strategy : Èassets, Çalternate funding, … maintain strong liquidity

21

Government programs
Programs GE impact
• Capacity of $98B (incl. GE) … pricing @ slight penalty to market
Commercial paper
• GECC/GECS outstandings matured in February … none outstanding today
funding facility
(CPFF) • Enables GE to support investor liquidity needs & manage duration … serves as
liquidity backstop

• GECC capacity of $126B … important for LT debt market & CP market access …
Temporary program now extended through October 31, 2009
liquidity • $37B LT debt issued under the program … $3B remaining for ’09
guarantee
program • Manage ~$25-$35B CP outstandings under TLGP
(TLGP) • ~$50-$60B capacity remaining … option to fund some ’10 maturities in ’09

• Newly announced Fed/Treasury facility … covers AAA ABS for specified assets …
Term Asset- currently auto & credit card … may be extended to equipment & CMBS
backed securities
loan facility • $10B+ of PLCC/CDF maturing securitization debt likely eligible
(TALF) • Potential for increased liquidity for real estate and equipment … may reduce cost of
securitization funding … continuing to evaluate

Public Private • New facility in development … initial focus on marketable securities & other MTM
investment funds assets … could expand to leveraged loans, real estate, equipment, etc.
(PPIF) • Improved liquidity in these asset classes to help overall market

22

11
 2009 alternate funding
($ in billions)
CD’s : Distributed through multiple firms to support
asset growth in US banks
• Industrial Loan Corporation deposits Ç$17B
~$81 – Adding 3 complete business platforms to ILC …
direct origination a)
20 – Originating CD’s to match bank assets profile
(~$7B > 1 yr. maturity as of 4Q’08)
$55
• Federal Savings Bank deposits Ç$2B
– Direct origination of sales finance assets
27
19
International deposits Ç$6B
$30 – Drive market share in emerging markets
Other 10
– Tap large/developed markets
U.S. Industrial Loan 17
Corporation 18 15 French Gov’t program: $1B ’09 target ($0.4B YTD)
U.S. Federal
Savings Bank
1 17
11 11 Covered bonds program: 1st issuance by Jul ’09
International
Exploring other asset based funding options
4Q'07 4Q'08 4Q'09E
Cost of funding attractive vs. LT debt
Transition banks to deposit funding a) Subject to regulatory approval

23

$58.2B bank lines ... ~100% CP coverage

($ in billions)
Remaining Term as of 3/11/09 Comments
> 4 years
• Strong base of $37B lines >1 year
$4B
less than 1 year
• $19.8B up for renewal in Mar-Dec ’09 … phased
$22B 94% w/ term out reduction planned as outstanding CP comes
down
> 3 years but $30B
less than 4 • Expect $10B renewals by June with remaining
$3B $3-5B during 2H’09
> 1 yr but less
than 3
• Support levels not materially impacted by bank
• ~80% lines from Aaa/Aa banks consolidation

• Lines from 64 banks globally • No MAC clauses

• Syndicated: $22.9B; Bilateral: $35.3B • No covenants or rating triggers

• ~$12B also available to GE parent • Drawn pricing at capped spread over Libor

Liquidity in great shape … on track to meet CP coverage targets

with $50B+ bank lines and $30B+ cash

24

12
Capital ratios
GE Capital Corp. leverage a) GE Capital Corp. TCE/TA ratio b)
7:1 ~6%
~6:1 4.9%

1.9% d)

4Q’08 1Q’09E U.S. Large 4Q’08 1Q’09E

Tangible book BHC avg.
Leverage c) 17X 14X
9 GE infused $5.5B cash into GECS 4Q … plan to infuse ~$9.5B into GECS 1Q’09
9 Leverage commitments ahead of plan … ~6:1 by 1Q’09
9 TCE/TA ratio at the top end of the banks even if banks convert their TARP
preferred equity into common equity
(a- net of cash and equivalents and with classification of hybrid debt as equity
(b- TCE : Book equity less goodwill & intangibles; TA : Total assets less goodwill & intangibles
(c- Total borrowings/equity less goodwill & intangibles
(d- As of 4Q’08 excludes TARP equity; Source : Federal Reserve Y9 filings

25

Portfolio overview

26

13
Risk management
9 Diversified portfolio – broad spread of risk, managed exposure limits

9 Senior secured financings – disciplined underwriting to GE “on book” standards

– Collaterals GECC knows well – 2 decades of experience

9 Conservative asset residuals – 520 experienced asset managers – market

intelligence & redeployment capabilities

9 Significant commitment of people resources – ~16,000 globally

– Senior risk officers have over 25 years experience

9 Data-driven analytics – identify & monitor key risks, measure capital & leverage

9 Rigorous process approach – detailed approval authorities, GECC Board reviews

Disciplined approach to managing risk

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GECC Portfolio
Total assets ($637B) Geography
Other
Other 9%
Real Estate Asia Pacific
$68B 11% 48% U.S.
$85B
Latin America 2%
11%
13%

27%
Consumer Europe
$183B 29%
3%
Canada

Developing Markets $70B

36% Others
Poland
Commercial 12% 18%
8% Korea
Lending & Leasing 7%
3% $230B
GECAS 5% Brazil
$49B EFS Czech Republic 10%
$22B 8%
Hungary
6%
~70% of financing activities - Commercial China 5%
India
4% 4%
Russia 4%
~11% Developing Markets 17% Thailand
Turkey
Mexico

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14
 Consumer Portfolio (assets)
Product ($183B) Geography ($183B)

Other
Asia
JVs Sales Finance
North America
6% Eastern 7%
14% Europe
6%
25%
Auto Personal 16%
11% 9% Loan

Small and
6% Medium 2% Latin
Enterprises America
13%
ANZ
14% 20%
Mortgage 34% Cards
17% Western
Europe
UK

>70% International
~22% in developing markets
~58% of receivables – Prime

29

Commercial Portfolio Diversification

Industry sectors ($386B) Collateral type ($386B)

Construction Energy Others

Hotels Restaurants & A/c Rec and Inv
Commercial Airlines Generation/Distribution
Leisure
3% 4%
4% 13% 9%
Health Care 5%
Cash Flow
6%
FF&E and Other Equip
Energy 12% 10%
6%
Automotive
2%
Machinery 2% Corporate Jets 3%
& Equipment
24% Real Estate

Transportation 7%
24%
Equipment
Comm. Real
4% Estate
Healthcare Equipment 3%

32% 2% Franchise 4%
2%
Diversified Finance 13%
6%
Fleet Vehicles
Others Business Services Dealer Inventories
Comm. Aircraft

45% less than 6% Diversified portfolio in

industry weighting - long-standing GECC
51 industries collateral types

30

15
 Commercial Customer Concentrations
($386B)
Over $1B
$500MM-$1B Over $1B, 15 accounts:
6%
5% Airlines, Class 1 Railroads, Electric
$300MM-500MM Utilities, Aircraft Manufacturing, Real
5%
Estate
$200MM-300MM
4%
$500MM-$1B, 27 accounts:
Airlines, Automotive, Healthcare, Power
8% $100MM-200MM
Generating Projects, Oil & Gas Refining,
Cable, Broadcast Media

$300MM-$500MM, 44 accounts:
61% 11%
$50MM-$100MM Automotive, Airlines, Electric Utilities,
Broadcast Media, Healthcare,
Technology Equipment
Under $50MM

72% of single risk exposures <$100MM

Larger exposures secured primarily by essential operating assets

31

Key portfolio risks – 12/2 view

(Pre-tax losses - $ in millions)
December 2, 2008 outlook
Estimated March ’09
Downside case
% ’09 financial outlook
Assets 2009 Assumptions impact Impact Assumptions vs. Dec. 2
U.S. Consumer 7% • 8.5% unemployment ~$4.2B ~$5.0B 9%
unemployment È

U.K. Mortgage 4% • HPI (17%) 2008

$600 $800 (20%) HPI =
• HPI (15%) 2009

Real Estate 14% • Cap rates 50-100 bps. higher $250 $400 +200 bps. highest
- Debt • Cap rates 50-100 bps. higher, historical cap rate by
- Equity long-term hold $240 $500 asset type È

GECAS 7% • Global traffic growth down ~$300 ~$550 • (3%) traffic decline =
~2% 2009 (9/11)

Economic environment more challenging

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16
Stress testing approach
Bottoms up – asset by asset, business by business
Large commercial exposures over $300MM stressed individually

Consumer
• Mortgages, credit cards, auto and personal loans and sales credit financing
– By product, by geography – market specific
– Consistent methodology applied across product types globally

Commercial
• 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
• Commercial Loans and Leases: Stress probabilities of default, recovery rates

33

Consumer portfolio stress testing

U.S. Non-U.S. Mortgage
Key Drivers: Key Drivers:
Macro • Unemployment Macro • Home prices
• Home equity access • Unemployment
Portfolio • Credit quality • Refinancing ability
• Credit lines Portfolio • LTV
• Loss sharing • Mortgage insurance
• Recovery rates • Borrower credit quality
Key Assumptions: • FX movements (Central Europe)
Fed Base Fed Stress
Key Assumptions:
GDP (2.0%) (3.3%) Adverse

U/E avg. 8.4% 8.9% U.K. • 15% HPI decline in ’09 (34%
’08-’09)
U/E peak 9.3% 10.1%
• 9% unemployment
Debt sale recovery rate: • Additional loss on sale 20-25%
PLCC È10% to 7.2% È25% to ~6% Central Europe • 15-30% further devaluation from
today’s FX rate based on country
Sales Finance È16% to ~6.6% È25% to ~6% • Unemployment up to 13% based
on market
No benefits assumed from U.S. Stimulus Programs

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17
Commercial portfolio stress testing
Commercial Loans, Leases Real Estate
Key Drivers: Key Drivers:
Macro • GDP, Unemployment Macro • GDP, Unemployment
• Liquidity • Liquidity
Portfolio • Senior diversified positions Portfolio • LTV
• Borrower leverage • Property cash flow
• Sector diversification • Borrower leverage
• Asset value of collateral • Cap rates, liquidity
Key Assumptions: Key Assumptions:
Fed Base Fed Stress Fed Base Fed Stress
GDP (2.0%) (3.3%) GDP (2.0%) (3.3%)
U/E avg. 8.4% 8.9% U/E avg. 8.4% 8.9%
U/E peak 9.3% 10.1% Cap rates Revert to historical median
Defaults Increased ~70% from Increased ~100% from
of last 18 years
2008 levels to ~5% 2008 levels to ~6% Output PPR model forecasting greater
Severity Increased GECC Increased GECC declines in office property cash flows
historical severity by historical severity by
35% on average to 50% on average to
~15-30% ~20-35%
No benefits assumed from U.S. Stimulus Programs

35

Portfolio overview
(as of 4Q’08)

% of total portfolio GE position vs. banks

Asset type GE Banks* • Less Consumer
• No U.S. mortgage, auto or student loans
Consumer 30% 64% • More global
Commercial 70% 36%
• Minimal real estate construction exposure
• 46% of portfolio is cross-collateralized with other 1st
U.S. 41% 86% mortgages
• Operate each owned property
U.S. consumer 6% 58%
• Underwrite to hold on book
- Cards 3% 9% • Minimal junior debts, small hold positions
- Mortgage 0% 40% • Global redeployment, remarketing capabilities
- Auto 0% 1%
• Deep domain expertise in Commercial Air & Power
- Student loan 0% 1% Generation
- Sales Finance/other 4% 7%
• PLCC has smaller average balance, lower loss severity,
* Weighted average of top 4 U.S. money center banks
retailer loss sharing

GE mix different than banks

36

18
Business reviews

37

Real Estate

38

19
GE Real Estate … what we do
1 Finance purchase of real estate by 3rd parties in
multiple asset classes, individually and in cross-
collateralized portfolios
2 Own, manage and add value to real estate as
single assets and portfolios across office,
apartment, warehouse, and retail asset classes
around the world
3 Provide financing to owner-occupied commercial
real estate for small to middle market businesses

39

How we manage risk

Rigorous process around market, customers and asset evaluations
Semi-annual market evaluations
• Global data driven, investment hurdle setting process
• Leverage GE portfolio data as well as 3rd party data and analytics

Experienced, independent valuation/underwriting teams

• Local presence … utilizing consistent process globally
• Tenant credit analysis
• Detailed lease by lease review … process designed to haircut revenue above historical avg. levels
• Valuations generally 90-95% of MAI appraisal values

Led by seasoned risk leadership team

• Over 25 years of experience, on average

Ongoing risk analytics review combined with asset management surveillance

• Identifies risk trends, concentrations
• Allows for proactive risk management measures

Sophisticated tools for easier market analysis and deal assessment

• Market data • Economic/market sensitivities
• Customer relationship management • Deal review/approval system

40

20
Rigorous portfolio valuation process
Detailed source document review
• 100% lease review, rent rolls, income statement, GL, etc.
• Thorough credit review of major tenants
• Review of borrower/partner operating capability and financial
strength
• Know Your Customer “KYC” Surveys
• Perform cash flow audits

3rd party consultant review Process culminates

• Environmental survey in roundtable asset
• Structural survey (earthquake as needed)
valuation review …
Market/site analysis all assumptions
• Detailed inspection of property and surrounding neighborhood
• On-site management and tenant interviews
challenged
• In depth discussions with brokers, appraisers
• Survey competing owner/operators for rents, occupancy and
expenses, in addition to public data
• Inspection of recent sale comparables

Financial modeling
• DYNA lease / proprietary models created for DCF valuations

41

Key market risks in 2009/2010

1 Economic fundamentals
– Industry transaction volume in 4Q’08 down 80% from 4Q’07
– Rental rates È, absorption È, vacancies Ç, delinquencies Ç,
demand È, supply constant
– Virtually no new liquidity available … TALF should help … 2nd half
may be better

2 Over $500B* of U.S. loans set to mature in 2009, $35B*

from CMBS pools
– Banks deleveraging
– Limited new refinancing capacity in the system

3 Equity valuations
– Up to 20% drop in major market rents expected, vacancies up
significantly
– Values still under downward pressure … our values down ~18%
’07-’08
Challenging environment
* Source: Property & Portfolio Research (PPR)

42

21
Primary real estate products
Debt portfolio: $48B Equity portfolio: $33B
Other RE Construction
Other RE
6% 1.5%
Office 6%
Warehouse Warehouse
23.5%
9% 12%
Retail
8% Retail 9%
Office
Hotel 1% 49%
Hotel
11% Mixed 6%

Mixed Owner-occupied Parking 3%

3% 19%
Apartment
Apartment
14%
19%
• On balance sheet lending • Well diversified, A-/B+ quality, avg. inv. $10MM, minimal
• Senior secured, first mortgage construction risk
• Not a construction lender • Primarily wholly-owned with no 3rd party debt - $29B,
• 35 year track record joint venture investments – $4B
• Owner-occupied: mid-market credit/single tenant • Hold at historical cost less depreciation … $1.5B annual
NOI, $1.1B annual depreciation
9 Debt portfolio primarily senior secured first mortgages, no “hung” inventory
9 Equity portfolio is good quality, primarily 100% owned operating real estate
9 Under Fed Reserve adverse stress test, potential total portfolio losses are manageable

43

Debt

44

22
GE Real Estate position in debt markets
GE Real Global RE debt market GE $48B
Estate $6 trillion*
CMBS
$62MM

CMBS Senior 97%

rated secured/ senior 46% cross
1st mortgage secured/ collateralized
1st mortgage

CMBS
unrated
Mezzanine 3% Î $1.4B Subordinated
Equity

Senior secured debt

• Layer of capital protection if stressed
• Real capital committed in junior position/equity
• Clear path to exercise remedies and take control of property
- We avoid legal jurisdictions where a property owners’ rights are not respected
* Source: PPR

45

Debt portfolio
Collateral type dispersion
Construction
Total debt Geographical profile
US -CA, 8%
Other RE
exposure:
Other 4%
1.5% Germany 4%
6% Office US-TX, 5%
Warehouse UK 7%
23.5%
9%
$48B Japan 7%
US-FL, 4%

Retail
US-GA 3%
8%
Mexico 8%

Hotel
US-Oth, 23%
11% Canada 8%
Owner-
Mixed occupied
US/Canada-
3% 19% Owner occupied
19%
Apartment
19% Comments
Debt structure • Crossed portfolios (46%): a single loan secured by multiple
Singles
properties in multiple locations. Benefit: loss from a single
32% Owner-occupied
19%
property can be offset by excess cash flow and/or value
from other assets in the portfolio
CMBS bonds
Sub-debt $1.4B $62MM • Hotel exposure: 35% acquired at a discount post credit
3% a) Crossed crunch; 54% cross-collateralized; largest loan exposure at
portfolios $1.1B was 33% LTC at U/W, cash flow up 7% since U/W
46% and current DSC @ 5.52X
• $0.7B construction portfolio: 65% acquired at a discount
First mortgage senior secured 97%
• Japan/UK/Germany: portfolios acquired at a discount

46

23
Commercial real estate at GE
What we typically avoid What we do
• Construction lending • Senior secured lending in markets we understand
• Value add properties in good locations
• Land loans • Mid range office
• Affordable middle class apartments
• Single family residential development - Avoid luxury
• 2nd mortgages • Retail focus grocery/hyper market anchored
centers
• Mezzanine high yield • Warehouse
- Crossed parks w/multi tenant, high CoC
• CMBS hold positions – A or B pieces • Opportunistic portfolio acquisitions at discounts
• Syndication book, “hung” inventory
Commercial RE debt as of Dec ’08
• Malls
• Trophy buildings Total O/S ($B) $112.4 $142.2 $68.2 $48.0
• Brownfield sites Other
Commercial 64% 65% bought < par
• Resorts 72%
85%
98%
and 8% crossed
w/stabilized
Construction, properties
• Exited condo conversion early Land and
36%
Developer Debt 28%

• BRICs 15% 1.5% 1.5%

Bank 1 Bank 2 Bank 3 GE

47

Debt portfolio performance

Maturity profile* Vintage profile*
$B
15
$14.9B
$14.4B Europe
$11.3B 2.4
10
$9.2B $9.2B 2.9 2.6 Asia
$7.0B $6.8B 0.6
$6.1B
7.8
9.4 N. America
5
6.0 6.4

<2006 2006 2007 2008

0

'09 '10 '11 Thereafter 55% of ’08 is opportunistic discounted debt purchase
* Excludes owner-occupied
Delinquency/defaults
(% of Total O/S) Commercial Banks GE 5.4%*
5%
Commercial
banks (4Q’08)

3%

GE
1.2%/$0.6B

0%
Dec-00 Dec-01 Dec-02 'Dec-03 Dec-04 Dec-05 Dec-06 Dec-07 Dec-08

* Source: FFIEC

48

24
Why our delinquencies and losses are
lower than competitors
• Primary driver is product mix
Construction
• Construction and development loans & development (C&D)
- 32% of banks’ commercial real estate portfolio Banks* GE
vs. 1.5% at GE … 65% acquired at opportunistic
C&D % portfolio 32% 1.5%
discounts
- We also generally avoid other higher risk asset C&D charge-offs as
classes/structures – 2nd mortgages, mezzanine, malls, % of total charge-offs 83% 0
resorts, condo conversions, etc.
• Underwriting rigor/standards/valuations C&D delinquencies 11.4% 3.8%
- Independent/in-house risk underwriting
- Our underwritten valuations are generally 5-10% below C&D delinquencies
appraisal values % of total delinquencies 66% 4.4%
• Asset management capabilities Construction and development
- Extensive local network … unparalleled loans drive bank losses &
delinquencies
- Every loan matters
*Source: FFIEC

Can’t apply banks’ delinquency and loss experience to GE portfolio

49

Maintaining relatively strong

performance Portfolio metrics
U.S.: 100 markets
Eur: 32 markets
Debt
LTV
Loan to value (LTV) <75% 75-90% >90%
High $5.0 $3.8 $2.4
DSC 2.0x $3.1 $2.6 $0.9
Medium
LTV 74% Low $0.2 $0.5 -
Mexico $3.6 - -
Not Rated

75-90% Values: Japan $3.1 $0.2 -

$12.8B Current re-underwriting, Canada $1.5 $1.2 $0.1
<75% historically 5-10% less Other Mkts. $1.7 $2.2 $0.5
$20.8B than appraisals Hotel/Other RE U.S. $2.6 $2.3 $0.4
Total $20.8 $12.8 $4.3
>90%
$4.3B • Top 10 markets account for 33% of total
Excludes owner-occupied, purchased • 15% matures in ’09
non-performing loans, tax credits

Debt service coverage (DSC)

Comments
1.0-1.2 92% paying current
$4.4B $2.1B mitigated
>1.2 - Supported by letters of credit, cash
$30.3B <1.0 reserves, guarantees covering at least 12
$4.8B months debt service payments
$2.7B not mitigated
- $1.2B <80% LTV
Excludes owner-occupied - Fully reserved if not deemed recoverable

50

25
 Debt maturities risk
$6.1B debt maturing in ’09

$1.9B $1.9B ’09 maturity components

0.3B
$6.1B Maturing 2009
0.9B 2.2B <85% LTV loans likely to meet
$1.3B contractual extension requirements
0.1B
… expect all to extend
$1.0B 2.3B Potential refinance, low LTV,
>85% amortization
0.3B
LTV 1.6B
1.6B >85% LTV loans pose refinancing
1.2B risk in current environment
1.0B
<85% • $0.6B expected to pay-off
0.7B
LTV
• $0.5B expected to pay-down
• $0.5B expected foreclosures
(90%+ of loans with specific
1Q 2Q 3Q 4Q reserves or purchase discount)

51

Owner-occupied mid-market lending

# of deals Deal size segmentation Geographic concentration Ratings by maturity
$MM
by NEA
1800
1,658
1600
1,492 CA #: 7 #: 82 #: 4 #: 8
14%
1400
2009 $: 9 $: 198 $: 1 $: 11
1200 TX %: 0.1 %: 2.0 %: 0 %: 0.1
Total NEA Remaining 6%
1000 $9.7B 40% #: 7 #: 78 #: 3 #: 2
FL
800 6% 2010 $: 59 $: 132 $: 5 $: 5
600 NY %: 0.6 %: 1.5 %: 0.1 %: 0.1
500
5%
400 344 ONTARIO
4%
#: 203 #: 2,618 #: 132 #: 29
200
89 QUEBEC 2011 $: 674 $: 8,254 $: 339 $: 46
23 14 5%
0 AZ 2% 3% & after %: 6.6 %: 85.1 %: 3.5 %: 0.5
Deal Size/ <$1MM $1-$3MM $3-$5MM $5-$10MM $10-$15MM $15-$20MM >$20MM WA 2% OH NJ IL GA PA
Total NEA$0.9B $2.7B $1.9B $2.3B $1.1B $0.4B $0.4B 2%2%3% 3% 3% NC AAA-A BBB-B CCC-C D
88% of deals NEA <$5MM Largest concentration = CA 14%
57% of NEA <$5MM Only 4 states >5% concentration

Historical delinquency
& losses (1988-2008) Stress test comments
4%
Delinquency % Losses % EAD Loss/yr
($B) PD LGD ($MM)
4Q’08 outlook 10.5 3.9% 15% 63
2%
Stress case 10.5 5.1% 20% 107
1.5%
• Stress PD is 30% higher than Plan PD; reflects 2 notch
drop for < B+, 1 notch drop for > BB-
• Stress LGD is a 33% increase over 4Q outlook LGD
0%
1988 1992 1996 2000 2004 2008
• Stress LGD of 20% requires a 50%+ collateral value loss
given average LTV of 61%
Weighted avg. historical delinquency .73% / loss .09%, excludes
off-balance sheet

Credit underwriting with property collateral

52

26
 Credit costs – total debt portfolio
Our portfolio has outperformed
the industry over time Losses/reserves
’05 ’06 ’07 ‘08
($ in millions) Credit costs
156
128 (provisions) $31 ($5) $24 $135
PPR forecast 99 Reserve % 1.31% 0.74% 0.52% 0.64%
credit costs* 97
Reserve $ 189 155 168 301
Better Debt service
69 experience
coverage 1.4x 1.6x 1.5x 2.0x
Actual GE RE 33
17
net charge offs 11
• Reserve % driven by recovery of specific reserves from
loan payoffs and improvements in debt service
’05 ’06 ’07 ‘08 coverage
* Forecast at end of preceding year Reserves
(1) Specific reserve process - FAS 114
• ’05-’08 period generally benign, however • Quarterly surveillance process based on 7 triggers
industry model losses > GE RE losses (DSC<1x, LTV>100%, “Risk/Watch” accounts,
delinquent or non-earning, cost recovery, past
• Over longer periods GE RE portfolio maturity>90 days, loans with specific reserves)
outperformed due to: • Specific reserves posted when loans deemed not
- Product mix (very low construction exposure) fully recoverable, generally when LTV > 100%
(2) General reserves process - FAS 5
- Underwriting (valuations, rigor)
• Based upon robust analysis utilizing PPR
- Asset management (extensive network) “Compass” model technology - real estate market
data and GE portfolio statistics

53

Property valuation stress methodology

NOI assumption Cap rate assumption

Asset-by-asset business plan* reflects PPR/PMA** recession

Median long term historical cap rate +
4Q’08 case adders for asset quality
Outlook* • 2 year US office market rents flat

Fed Negative rent growth and occupancy per PPR/PMA** utilizing

Fed baseline assumptions for GDP / unemployment Median long term historical cap rate +
Baseline • 2 year US office market rents Ð 13% adders for asset quality
Case • Impact on office equity portfolios NOI Ð 14% over 2 years

Fed Negative rent growth and occupancy per PPR/PMA** utilizing

Fed more adverse assumptions for GDP / unemployment
Adverse Median long term historical cap rate +
• 2 year US office market rents Ð 15% adders for asset quality
Case • Impact on office equity portfolios: NOI Ð 16% over 2 years

Asset by asset = 35,000 commercial tenants, 8,000 properties, 2,600 cities

* Outlook reflects the best local market data available to asset managers in 4Q’08
** Property Market Analysis (PMA)

54

27
 Real Estate loan loss stress cases
($ in billions, pretax)

Fed baseline case Fed adverse

Comments
Total debt NEA $39.5B* $39.5B* • Current delinquency of $0.4B* on $39.5B*
Minus 0 - 100% LTV (28.5) (26.2) • 4Q’08 outlook of $0.3B credit losses
= Net >100% LTV 11.0 13.3
• Impact of Fed base and adverse
Minus >1.0x DSC (7.8) (9.6) scenarios determined as follows:
= > 100% LTV and 3.2 3.7 Apply PPR’s adjusted rent and occupancy
<1.0x DSC assumptions, by market and collateral
Minus collateral (2.3) (2.7) type to the underlying individual
value property value
= Potential loss $0.9B $1.0B
• Stressed property value compared with
loan principal amount to determine
Implied default rate 8% 10% those above 100% LTV
Implied LGD 27% 27% • Stressed property cash flows compared
* Excludes owner-occupied lending with debt service required by each loan
to determine those with <1.0x DSC

55

Equity

56

28
Equity portfolio
Collateral profile Geographical profile
Total equity
Other RE Australia 4%
6% Spain 4%
Warehouse

exposure:
Germany 6%
12% USA 29%

Retail
$33B
UK 6%
9%
Office Canada 6%
Hotel
49%
1%
Mixed France 12%
6%
Parking Japan 19%
3% Apartment U.S. – Top 3 cities (5% of total) – San Diego, Seattle, Austin
14% Japan – Tokyo 9%/France – Paris 8%

Predominantly office (Japan, U.S., France) GE equity by vintage

Apts. (U.S., Japan); Warehouse (Mexico, U.S.)
$14.8
Equity structure 3.9 Europe
$10.1
2.6
3.8
Asia
Wholly-owned
86% $5.5
2.8 3.7 8.3
JV $2.6
1.4 1.2
12% 2.6 0.4
1.3 1.0 N. America
Other <2006 2006 2007 2008
2%
48% originated before 2007

57

Portfolio characteristics
Asset size Portfolio profile
$33B Avg. investment $10MM
> $100MM 3.2 10%
Development
assets 3%
$50-100MM 5.8 18%

$20-50MM 9.2 29%

<$20MM 14.8 43%

In-place assets
97%

58

29
 Global hurdle process
Semi-annual top-down assessment of:
54 U.S. / 32 Europe markets
Market collateral pairs
4 major collateral types
Apartments Office
Multiple inputs used:
Debt Equity Debt Equity
Macro Micro

GDP, demographics Local supply/demand

S/T M H S/T = < 3 yrs M H S/T
Industry trends Construction L/T M H L/T = 3-5 yrs M H L/T
Market liquidity Actual sales/leasing activity
Washington, DC
PPR / PMA (3rd party/independent)
Bottom-up review by local field network; debate through
semi-annual meetings
Consistent methodology for analyzing markets
Alignment of market views between credit committee and Retail Warehouse
field
Establishes new business parameters (no equity Debt Equity Debt Equity
originations currently), and portfolio indicators
S/T H H L L S/T
High hurdle = rising vacancy, falling rents/values L/T H H L L L/T
Medium hurdle = specific issues to be addressed High
Hurdles Medium
Low hurdle = balanced supply/demand, stable to rising rents/values Low

Very rigorous origination guidelines

59

Example: hurdle process limits retail

exposure
Equity portfolio: $33B • Equity hurdles shifted higher in ‘05/’06
$3B resulting in fewer deals
Japan
22% • Focused investments on countries/
C. Eur locations with low per capita retail
28% exposure and a growing middle class
Retail
9%
Italy • 60% anchored by hypermarkets: Tesco,
10%
Other Walmart, Metro, Tokyu Hands
10% N.
Mexico America – Reduced U.S. equity exposure early
5% Korea Spain 7%
UK 6%
7%
5% U.S. retail
Debt portfolio: $48B ($ in millions)
300

250
$240
• Avoided malls 200
$167 $157
• Very limited retail exposure to single tenants 150
100
• Grocery anchored and DIY retail (~20%) and 50
Retail
strip centers, less affected by discretionary 0
8%*
spending (e.g. fashion) ‘06 ‘07 ‘08

• Cross-collateralized $2.8B = ~70% of retail

exposure
* Excludes owner-occupied lending

60

30
 How we operate our assets (debt & equity)
Extensive depth of resources, asset surveillance activities, and value creation techniques
Experienced Intensive asset Issue resolution/value
team network surveillance processes creation techniques

• 97 field office network • Captive loan servicing • Change partners/operators

• Asset management team – Billing and collections – Improve property performance
averages 20+ years RE – Insurance, property tax escrows – Asset strategy changes
experience – Real-time delinquency • Investment structure
• Shifted focus of global team monitoring modifications
from originations to asset – Cash pay downs and lockboxes
management • Intensive property surveillance – Joint ventures/mergers
Headcount – Asset level business plans – Seller financing
– Lease reviews and approvals
’07 ’09 – Financial statement audits • Reposition real estate
Focus: 2,200 1,500 – Renovate/redevelop
4% – Collateral monitoring & security
– Re-tenant
Originations 30% • Portfolio reviews and metrics
40% – Asset categorizations GE vs. competitors
Asset mgt 11% – Differentiated surveillance • We buy assets … run them like a
levels based on asset factory
Risk, performance
finance, – Proprietary in-house global • Many competitors have limited
59% 56% operating skills and lack local
etc. information system
– Portfolio performance metrics presence

Highly experienced global team focused to maximize asset values

61

Equity NOI revenues & expenses

Property-level revenue actions Sourcing mindset for expenses
MM square feet
16.5 1 Property management
Office
Ind'l 84.5 Vacancy % 16% 2 Property taxes
Retail
65.8 ’09 rollover % 15%
3 Utilities and other
~167MM SF (excl. apartment, hotel, parking)
9 Intense focus on existing tenants … working 9 Rebidding 3rd party PMC service contracts
plans months ahead of renewal process 9 Leverage portfolio-wide buying power
9 22 million sq. ft. leased/rolled in 2008 9 Review/revise service scopes
9 81% of projected ’09 revenues from in place 9 Filing for property tax reassessments
leases rolling in ’10+
9 Sustainability & energy efficiency cost
9 Leveraging our local teams, using best-in- reductions and asset value enhancements
class brokers to develop detailed leasing
plans for vacant spaces

Targeting $1.5B NOI in ’09 … Fed baseline È$64MM, Fed adverse È$74MM

62

31
GE vs. industry
Fund levered 3 big differences vs. opportunity funds
equity GE 1) We don’t mark assets up
2) We depreciate assets each year
3) We generally don’t lever up

• Maturities and periodic value swings make

65-90% Third party third party debt challenging
external debt GERE
$29B - Creates artificial timing in the asset life
• Third party debt generally less attractive
than GE internal cost of funds
• Prefer to “control our destiny”
10-35% Equity - Use external leverage only when economic
- Levered equity structured with skilled
partners
• Leverage can magnify upside/downside

63

Why is our unrealized loss “so small”

compared with opportunity funds?
Asset value $100 $103 $85
Opportunity fund $33 $36
Investment
$18
Levered Investment
investment value Ï9% value Ð50%
-book value $67 $67 $67
(mark to market)

3rd party debt (2:1)

Acquisition-’06 ’07 (peak) YE ’08

Asset value $100 $103 $85

GE $100
$97
Depreciation
3%
$94
Unlevered Depreciation
investment 3%
-book value Investment Investment
(historical cost) value Ï3% value Ð17%

Unrealized Acquisition-’06 ’07 (peak) YE ’08

gain/(loss) - $6 ($9)

64

32
 Levered equity positions of funds
amplifies losses
GE all-cash Fund - levered equity*
* Assumes ~2:1 leverage

$29B ’08 vs. ’07

value loss 33% equity Value loss
15% 15%
100%
equity Investment loss 67% Investment loss
15% 3rd party debt 45%

For “Fund”, value loss %

For GE, value loss % on real estate
on real estate does NOT
= investment loss
= investment loss

GE’s $4B unrealized loss @ year end ’08

= (18%) vs. ’07, (54%) if levered 2:1

65

Equity unrealized losses summary

($ in billions, pretax)
YE’08 unrealized loss - $4B Value change vs. YE’07
Value drop as %
Walk of GE book value
Owned RE YE’07 – unrealized gain $3
($2.9) JV’s Sales ($2)
($1.1) Depreciation $1 Wholly-owned (15%)
Change in value ($6) JV (42%)
Unrealized YE’08 – unrealized loss ($4) Total (18%)
Top losses: Collateral loss Cap rate
San Diego Office ($0.3) 8.3% Rigorous valuations process
London Office (0.3) 7.4
• Valuations updated minimum 2 times per year
Seattle Office (0.2) 8.1
Chicago Office (0.2) 8.0 • Standard guidelines with 3rd party market assumptions
Atlanta Apartment (0.2) 7.7 • Cap rates – long term median, range of 4.2% - 14.7%
Irvine Office (0.2) 7.7 • Local teams prepare valuations, global teams review and
Tokyo Mixed use (0.1) 4.5 approve
Dallas Apartment (0.1) 7.8 • 3rd party data – PPR, PMA, RCA, Co-Star, Reis, etc.
San Jose Office (0.1) 8.8 • 353 dedicated asset managers review 3,200 assets across 150
All Other Various (2.3) markets each cycle – tremendous local knowledge
Total ($4.0) 7.5%

Rigorous valuation process supported by 3rd

party data from respected industry sources

66

33
 Equity impairments
($ in millions, pre tax)
YE ’08 unrealized loss (‘UL’) mitigated
Equity impairments by cumulative depreciation
$294
($ in billions)
$153 $4.1
$30 $54 $3.1

’05 ’06 ’07 ‘08 $2.1

• For our owned properties, per U.S. GAAP we MUST state $1.1
’08
at depreciated cost, subject to impairment testing UL
(mark-to-market is NOT optional)
’09 ’10 ’11 ’12
• We do disclose the unrealized loss in our financial
statements - $4B pre tax loss at year end ’08
– ’07 vintage is primary driver … $3.3B (EOP suburban
Chicago È29%, Carr America È37%, Dundee È23%)
Quarterly impairment review process - FAS 144 review
process ~($4.0)
• Run undiscounted cash flow test quarterly on 100% of
our portfolio
• Inputs are consistent with our rigorous asset valuation • Real estate assets depreciated over estimated
process utilizing 3rd party data sources and long term
historical median cap rates
useful life (~3% annual)
• Hold periods vary, up to 10 years • Cumulative depreciation balance eliminates
current embedded loss over time and reduces
• If an asset fails the undiscounted cash flow test, it is risk of impairment
impaired, fair valued based on current value and an
impairment charge is recorded

67

Property valuation stress methodology

NOI assumption Cap rate assumption

Asset-by-asset business plan* reflects PPR/PMA recession

Median long term historical cap rate +
4Q’08 case adders for asset quality
Outlook* • 2 year US office market rents flat

Fed Negative rent growth and occupancy per PPR/PMA utilizing

Fed baseline assumptions for GDP / unemployment Median long term historical cap rate +
Baseline • 2 year US office market rents Ð 13% adders for asset quality
Case • Impact on office equity portfolios NOI Ð 14% over 2 years

Fed Negative rent growth and occupancy per PPR/PMA utilizing

Fed more adverse assumptions for GDP / unemployment
Adverse Median long term historical cap rate +
• 2 year US office market rents Ð 15% adders for asset quality
Case • Impact on office equity portfolios: NOI Ð 16% over 2 years

Asset by asset = 35,000 commercial tenants, 8,000 properties, 2,600 cities

* Outlook reflects the best local market data available to asset managers in 4Q’08

68

34
Rent growth assumptions
% London office % 8 Atlanta apartment
20

15 6

10 4

5 2
0
0
-5
-2
-10
-4
-15
-6
-20
2009 2010 2011 2012 2013
2009 2010 2011 2012 2013

15 San Diego office Dallas warehouse

% % 8
6
10
4
5 2
0
0
-2
-4
-5
-6
-10 -8
-10
-15
-12
2009 2010 2011 2012 2013 2009 2010 2011 2012 2013

Outlook Fed Base Fed Adverse

Source: PPR, PMA

69

Los Angeles equity example

Portfolio mix Historical perspective
$0.4B Expected Cap Rates
9% 8.90%
Office 8.71%

73% 7.83% 7.64% Max

Median

Min
Apartment 5.67%
13%
4.77%

4%

Office Apartment
psf p/u
Retail
5%
Warehouse Rent Levels $1,780
9% $32 $1,528
Market fundamentals $1,247 Max
In-Place
$27
Office Apartment $25 $1,076
Median
Low

$23

Office Apartment
Source: PPR

9 18 yr. median cap rates toward historic high cap rate levels
9 Current GE office portfolio rents 18% below market

70

35
 Los Angeles equity
Rent growth Equity $0.4B
Office
• Portfolio comprised of office $293MM,
Outlook Fed base Fed adverse
12%
apartment $54MM, warehouse $35MM,
8% retail $19MM
4%
0% Fed base case stress analysis - equity value Retail
-4% ($ in millions) Warehouse
-8% 750 Apartment
-12% Office
2009 2010 2011 2012 2013
500 $400
$19 $313
Apartment $35 $278
$54 $1 $245
$37 $24 $3
250 $38 $26 $1
$38 $23
Outlook Fed base Fed adverse $293 $252 $211 $183
6%
4% 0
2% NEA Outlook Fed base Fed adverse
0%
-2%
-4% Impairments $0 $10 $76
-6%
2009 2010 2011 2012 2013

Source: PPR
Stress case impairments driven by office

71

Real Estate equity stress summary

($ in billions, pretax) 4Q’08 Fed base Fed adverse

outlook case case

Equity impairments $0.4B $1.5B $2.6B

% of NEA impaired 5% 11% 17%
Implied loss rate on
impaired assets 24% 40% 44%

Embedded loss on
equity assets ($4.0B) ($4.7B) ($5.9B)
(after impairments) ($3.6B) ($3.2B) ($3.3B)
Implied loss on
affected assets 23% 28% 31%

Total estimated portfolio losses utilizing impairment test:

• Test: Undiscounted cash flows vs. NEA (net earning assets)
• If failed, loss = Discounted FMV vs. NEA

72

36
Real Estate summary
• We are primarily a senior secured debt underwriter and wholly
owned equity operator

• We believe that we are a conservative and diligent real estate

investor with strong underlying risk and valuation methodology

• The forward looking macro environment will be tough on the

commercial real estate market

• Our portfolios are solid but have challenges to manage

• Even under the Federal Reserve stress cases, losses would be

manageable

73

Commercial Lending
and Leasing

74

37
Commercial lending & leasing overview
Product Portfolio Mix ($230B)
Who we are and what we do
Equipment
leases & loans
• Leasing and lending against hard
54% Leveraged
loans
assets for 25+ years
17%

Factoring& • Operations across 30+ countries

ABL
6% 10% 13%
• No SIV/CDO exposure
Other
Other
senior-secured • Organized by product and industry
Portfolio Mix by Region ($230B) expertise
• Spread of risk: 1B+ transactions
Americas annually for 1MM+ customers
67%
globally
Asia
11%
• 21,400 employees with over 25%
EMEA
22% dedicated to risk management

75

What we do
($ in billions)
Product Assets Focus Approach
Equipment leases $125 Collateral: hard, foreclosable assets • Essential use equipment
& loans • Inv grade & mid market customers • Remarketing expertise
• Equipment & OEMs we know • Manufacturer support

ABL & factoring $30 Collateral: inventory & receivables • Advance rate on eligible assets
• Working capital for mid mkt • Monitoring, audits, cash control
• Industries & assets we know • Credit insurance for factoring

Leveraged loans $38 Collateral: enterprise & assets • Limited hold sizes & multiples
• Mid mkt LBO & acq finance • Originate to hold
• Sponsors & industries we know • Predetermined exit strategies

Franchise finance $13 Collateral: equipment & enterprise • Secured by assets & real estate
• Top tier and larger operators • Avoid start-ups & locals
• Concepts & geographies we know • Leverage franchisor support

Inventory finance $6 Collateral: dealer floor inventory • 1st lien on inventory

• Equipment & OEMs we know • In-house audit staff – 320 FTE
• Manufacturer support

Originate to hold…dedicated industry teams…foreclosable assets

76

38
 Global lease & loan portfolio
($ in billions)
Credit costs
Loss rate 1.1%
0.9% 0.8% Monitoring current portfolio trends
0.5% 0.4%
0.2% 0.1% $1.4 • Global equipment finance seeing weakness in
transportation, construction and automotive
$1.0
$0.9
• Consumer-related inventory and U.S.
Credit costs $0.5 $0.5 restaurant financing under pressure
$0.2
$0.1 • Leveraged lending experiencing weakness in
newspaper, automotive, radio and retail
'02 '03 '04 '05 '06 '07 '08
Reserve % 1.93% 1.51% 1.24% 0.78% 0.56% 0.60% 0.80%

Delinquency and non-earnings Leveraging broader domain expertise

2.3%
to drive portfolio solutions
Delinquency % 1.8%
1.4% 1.5%
1.3% 1.3% 1.3%
$2.7 • Created senior executive roles in each
$2.1 region to lead loss mitigation teams
$1.7
$1.5 $1.3 $1.2
$1.5 • Shifted significant resources to drive work-
out and portfolio management activities
Non-earnings
• Reduced exposure to troubled sectors and
restricted approvals to top-tier credits
'02 '03 '04 '05 '06 '07 '08

77

Global lending overview

Market
GE ABL & factoring … assets better
$5.2 Trillion positioned than last cycle
$68 Billion 2000 2008
Liquidation coverage (ABL) 1.2x 1.7x
Asset- $30B Interest coverage (ABL) 1.3x 1.7x
based Average exposure (ABL) $5MM $24MM
% Top 10 names 19% 7%
Senior
secured Leveraged $38B % Top 10 industries 66% 43%
Factoring 90-days 8.4% 4.2%
$70MM Leveraged lending … strong U/W
discipline, better spread of risk
2000 2008
Senior debt multiple 3.5x 3.5x
Sub debt Senior interest coverage 1.3x 2.1x
% Top 10 names 18% 8%
Re-packaged % Top 10 industries 63% 61%
(CDO) % > 4.5x senior debt multiple 31% 32%
Average exposure $13MM $27MM
High Yield
Cov lite exposure 4.5% vs. 15% industry

Senior secured portfolio rigorously managed

by an experienced team of professionals

78

39
 Leveraged loans: outperforms industry
benchmarks in periods of stress 4.60%

2.95%

2.37%
2.47% Market loss
1.32%
1.00%
1.59% rate*
2.08%
0.29% 0.16% 0.46%
0.43% 0.31%
0.93% GE loss rate
0.49% 0.86% 0.37%
0.30%

'00 '01 '02 '03 '04 '05 '06 '07 '08

• Starts with good underwriting: underwrite to hold, senior secured facilities, known
industries; no junior debt, start-ups, leveraged build-ups or small EBITDA companies
… underwrite assuming work-out
• Rigorous portfolio management: sophisticated tools & proprietary data to re-rate
portfolio as accounts or markets change; routine stress testing & scenario analysis
… account surveillance to ensure early detection of stressed credits
• Proven work-out ability: willing to work longer & harder to recover full value; not
selling early or into illiquid markets
* Market Loss Rate computed using Moody’s speculative grade default rate x S&P LossStat 1st lien cash flow loss-given-default rate

79

Equipment lease & loan overview

Industry mix ($125B) Risk management approach
Other
(<2%) • Underwriting teams organized by
Transportation Business
Real Estate
5%
Services collateral & industry
2%
Food & Bev 2%
15%
Airlines
3% • Transaction analysis combines
4%
credit review and extensive asset
Technology
4%
valuation
14% Construction
Financial 4%
Services • Continuous monitoring of portfolio
5% with dedicated industry groups
Automotive

5%
8%
• Experienced collection and work-
Consumer
Services
Healthcare
Providers out teams to exercise remedies and
%
Trucking 6% 7%
8% mitigate losses
Retail
Machinery
Manufacturing
• $14B of residual exposure

80

40
 U.S. equipment vs. benchmark
U.S. Equipment lending charge-offs vs. ELFA
1.58%
1.50%
1.41% ELFA*
1.40% 1.30%
1.17%
1.08% 1.11%
0.85%
0.80%
0.71% GE Equipment
0.48% 0.64%
0.72% 0.57%
0.44% 0.72% 0.55%
0.46% 0.39%
0.33% 0.38%
0.26% 0.31%

Dec'01 Dec'02 Dec'03 Dec'04 Dec'05 Dec'06 Dec'07 Mar'08 Jun'08 Sep'08 Dec'08 Jan'09

Differentiators Areas we avoid

• Underwrite to hold with emphasis on asset • Collaterals and industries where we don’t have
values and credit quality strong domain expertise
• 500+ person global asset management and • Broker/intermediary sourced deal flow
remarketing team (specialized by asset/ • Smaller regional restaurant concepts and
industry) collateral with thin secondary markets
• 900+ person global collection and work-out • Auction channels that we don't manage with
team- weekly calls with underwriting teams our specialized remarketing teams
and senior risk leaders

Consistent performance over a sustained period

*Equipment Leasing Finance Association performance indicator report & monthly leasing and finance index

81

Equipment residual values

Total residual value ($14B) Asset management approach
• 500+ person global team organized by collateral,
industry and geography
Marine Other
2%
18%
• Independent team sets residuals utilizing
Fleet
Forklifts extensive secondary market & proprietary data
2% 32%
Trucks • Multiple remarketing channels to maximize value
3%

Copiers
• Dedicated remarketing team managing all 3rd
6% Aircraft party sales including auction processes
Health 30% • 80+% of equipment (ex-fleet) sold in place or
7%
renewed

Impairment methodology
1998-2008 RV performance
Operating leases ($8B)
160% • Portfolio reviewed at least annually
• If undiscounted rentals plus residual value < BV,
% of Booked RV

140%
leased asset impaired to fair value
120%
Finance leases ($6B)
100% • Reviewed at least annually
• Compare current estimated residual to residual
80%
established at lease inception
'98 '99 '00 '01 '02 '03 '04 '05 '06 '07 '08
• If current < original estimate, record impairment if
Fleet Aircraft Copiers Total
decline is deemed other-than-temporary

82

41
 Well-diversified corp. aircraft portfolio
Portfolio mix by aircraft type ($13B) Historical residual performance
(% of booked residual value)
Medium 125%
13%
Small 116%
114%
110%
10% 114% 107%
117%

Rotary 106% 110%

100% 105%
Large/Global 7% 104%

62% Turbo Props/

Other 8%

'9 8 '9 9 '0 0 '0 1 '0 2 '0 3 '0 4 '0 5 '0 6 '0 7 '0 8

Portfolio vintage in years ($13B) Portfolio dynamics

16-20 21-25 • 72% of customers > BB- with 15% investment grade
11-15
7% 5% > 25
8% 5% • Average lease term is 10 years … stringent conditions
protect economics upon early termination

6-10 • 85% lease maturities beyond 2013 … $312MM in ’09-’10

31% 0-5 • 41 aircraft ($384MM) on ground, avg. age 13 years vs.
44% 30+ year useful life
• Original outlook: credit costs of $30MM; Fed base
$78MM; Fed adverse $120MM

83

Global fleet residual value exposure

Global exposure ($4.7B) Portfolio dynamics

Japan
• No residual risk to GE for U.S. Fleet product
UK 4%
8%
• Established distribution channels for vehicles
Germany – Retail & wholesale outlets
ANZ 28% – Broad multi-country distribution
18% – Web-based remarketing tools
• Rigorous monthly monitoring, increased deflation
France Other EU
22%
assumption and shifted away from large cars
20%
• Residual realization pressured in Europe
– Outlook losses of $50MM … avg. loss $1k/car
– Currently experiencing losses of $1.6k/car
Historical performance
• Implementing multiple mitigation strategies …
(% of booked residual value)
targeting $40MM
105%
103% 101%
103%
101% 101% – Extending terms
100%
100%
104%
– Direct remarketing
101% 100% 96%
– End of term fees
• Original global outlook: credit/remarketing losses
'98 '99 '00 '01 '02 '03 '04 '05 '06 '07 '08
$70MM; Fed base $93MM; Fed adverse $116MM

84

42
Exposures of interest
($ in millions)
Big 3 exposure Large cable company
Auto #1 $521 GE has $750MM of $8.3B senior debt facility
Auto #2 362
Auto #3 60 Senior debt facility structure

Total $943 • Secured by all assets

• 93% supported by equipment leases &
loans in core collaterals
• All facilities current with principle and
interest
• Exposures amortizing monthly
• Proactively monitoring situation
• Liquidation coverage of 1.8x
• Senior debt service coverage of 1.8x
• Senior to $14B of junior capital
Probable restructuring scenario
• Strong operating results but company
over-levered
• Bankruptcy filing anticipated

• Potential Loss of $80–150MM … • Senior debt fully covered

Driven by restructuring scenarios • No impairment of GE exposure expected

85

Stress testing summary

($ in millions)
Credit costs
Original Fed Fed
Portfolio outlook base adverse Key assumptions
Americas equipment $349 $445 $599 • U.S. unemployment at Fed cases

Leveraged loans 499 672 880 • Further deflated asset values

Franchise finance 101 127 153 • Decreased same store sales in

Franchise
EU equipment 173 212 250
• Stressed exit scenarios in
Asia Pacific 186 225 310 leveraged lending

U.S. asset-based loans 92 117 151 • No benefit assumed for stimulus

package and potential risk
All other 117 190 246 mitigation actions
Total $1,517 $1,988 $2,589

Loss rate 0.93% 1.22% 1.59%

86

43
 Stress scenarios – Americas equipment
Portfolio overview ($55B) Outlook & stressed scenarios
Other
Corp Air Stress assumptions
4%
9%
Canada
Canada Original Fed. Fed.
LAEF
AAA to BBB- 5%
HFS
16%
16% Key variables Outlook Base Adverse
19%
Trucking
13% Office Eq.
B+ and below Unemployment 7.7% 8.4% 8.9%
7% Small 8%
ticket
40%
Healthcare
Fleet
Comm’l
16% Eq. (average)
11%
BB+ to BB- 13%
13%
41% Fleet Const. Change in GDP (1.8%) (2.0%) (3.3%)
Citi
13%
14% 14%
Probability of 2.9% 3.3% 4.2%
Default (PD)
Credit Distribution Collaterals
Asset backed facilities with broad spread of risk by collateral, Loss Given 26% 29% 31%
transaction size and geography Default (LGD)

Key metrics Est. Credit Cost 349 445 599

2008 2009
Actual Outlook
Estimated loss rate 0.76% 0.97% 1.30%
30+ 2.2% 3.1%
90+ 0.8% 1.3% • PD is impacted by slowing economy
Net Charge offs 269 347 • LGD increase is driven by price declines in major collaterals
Credit cost 278 349 (aircraft, transportation, construction) and lower frequency
Reserves % 0.79% 0.83% of full recovery for small transactions

87

Stress scenarios – Leveraged loans

Portfolio overview ($38B) Outlook & stressed scenarios
AAA to BBB- Cable/TV 10%
Stress assumptions
7%
Business
Original Fed. Fed.
< B- BB+ to BB-
Services 10% Key variables Outlook Base Adverse
28% 18% Other Unemployment 7.8% 8.6% 9.0%
Radio/
51% Broadcasting 9%
(64 industries <5%) (average)
B+ to B- Printing &
48% Publishing 8% Change in GDP (1.6%) (1.8%) (2.9%)
Chemicals and
Allied Products 7%
Health Services 5% Probability of 6.9% 8.3% 9.7%
Default (PD)
Credit Distribution Industries
Senior secured credit facilities - primarily term loans Loss Given 19.9% 22.2% 24.9%
collateralized by 1st lien on all assets Default (LGD)

Key metrics Est. Credit Cost 499 672 880

2008 2009
Actual Outlook
Estimated loss rate 1.37% 1.84% 2.41%
Non-Earning 827 1,219
Net Charge offs 317 333 • PD increase driven by weakening economic environment
Credit cost 475 499 and deteriorating obligor financial health
Reserves % 0.8% 1.2% • LGD increase driven by greater uncertainty in ultimate
resolution value

88

44
 Stress scenarios – Franchise finance
Portfolio overview ($13B) Outlook & stressed scenarios
AAA to BBB-

5%
Stress assumptions
C&G
11% L/S
Original Fed. Fed.
Hotel
8%
Key variables Outlook Base Adverse
Bev/
B+ and below Restaurant 5% Other
37% Quick-service
Unemployment 7.7% 8.4% 8.9%
BB+ to BB-
58% 49% (average)
Restaurant
Casual
26% Change in GDP (1.8%) (2.0%) (3.3%)

Probability of 5.3% 5.6% 6.1%

Default (PD)
Credit Distribution Segments
80% of portfolio concentrated in 45 larger concepts Loss Given 21% 25% 28%
Default (LGD)

Key metrics Est. Credit Cost 101 127 153

2008 2009
Actual Outlook
Estimated loss rate 1.12% 1.41% 1.71%
30+ 2.7% 4%
90+ 1.6% 2.4% • PD increase resulting from higher unemployment and
Net Charge offs 38 100 stressed same store sales

Credit cost 131 101 • LGD increase driven by drop in real estate values

Reserves % 1.73% 1.75%

89

Stress scenarios – EU equipment

Portfolio overview ($18B) Outlook & stressed scenarios
AAA to BBB- Other 5%
Stress assumptions
11% Original Fed. Fed.
Const./Mfg. Fleet Key variables Outlook Base Adverse
Equipment 30%
B+ and below
38%
24%
EF Unemployment 8.1% 8.9% 9.4%
BB+ to BB- 58% (average)
51% Office Inventory
CDF 9%
Equipment 9% Change in GDP (1.0%) (1.1%) (1.8%)
22%
Healthcare 3%
Aircraft 7% Probability of 3.8% 4.0% 4.4%
Default (PD)
Credit Distribution Collaterals
Asset backed facilities with broad spread of risk by collateral, Loss Given 26% 30% 32%
transaction size and geography Default (LGD)

Key metrics Est. Credit Cost 173 212 250

2008 2009
Actual Outlook
Estimated loss rate 0.98% 1.20% 1.42%
30+ 2.29% 2.39%
90+ 1.03% 1.29% • PD increase driven by slowing economy
Net Charge offs 145 163 • LGD increase driven by reduction in fleet prices and lower
Credit cost 147 173 frequency of full recovery for small transactions
Reserves % 1.24% 1.44%

90

45
 Stress scenarios – Asia Pacific
Portfolio overview ($20B) Outlook & stressed scenarios
Stress assumptions
B+ and ANZ
Original Fed. Fed.
below AAA to BBB- Key variables Outlook Base Adverse
28%
22% 19%
Japan Unemployment 5.2% 5.7% 6.0%
60% India 5% (average)
BB+ to BB-
Other 7%
59% Change in GDP (1.2%) (2.2%) (4.2%)

Probability of 4.0% 4.5% 5.7%

Default (PD)
Credit Distribution Countries
Senior secured financings, primarily equipment, in developed Loss Given 28% 30% 33%
economies Default (LGD)

Key metrics Est. Credit Cost 186 225 310

2008 2009
Actual Outlook
Estimated loss rate 1.12% 1.36% 1.87%
30+ 2.4% 3.4%
90+ 1.4% 2.2% • PD increase is driven by deterioration in Japan and
Net Charge offs 114 159 Australia economy
Credit cost 152 186 • LGD increase is driven by moderate reduction in fleet
vehicle prices and collateral value depreciation
Reserves % 1.0% 1.0%

91

Stress scenarios – U.S. ABL

Portfolio overview ($10B) Outlook & stressed scenarios
AAA to BBB-
5% BB+ - BB- Stress assumptions
9% Wholesale Original Fed. Fed.
durable
18%
Key variables Outlook Base Adverse
Other
< B- 41% Retail
42% Unemployment 7.7% 8.4% 8.9%
(40 industries <5%) 12%
B+ to B- (average)
44% Health
svcs (1.8%)
10%
Change in GDP (2.0%) (3.3%)
5% 6% 8%
Bus Svcs
Metal
Wholesale Probability of 9.1% 10.6% 12.5%
non-durable Default (PD)
Credit Distribution Industries
Senior secured credit facilities secured by 1st lien on current Loss Given 10.0% 11.0% 12.0%
assets, managed via formulaic borrowing base Default (LGD)

Key metrics Est. Credit Cost 92 117 151

2008 2009
Actual Outlook
Estimated loss rate 0.91% 1.16% 1.50%
Non-Earnings 90 215
Net Charge offs 23 55 • PD increase driven by weakening economic environment
Credit cost 36 92 and deteriorating obligor financial health

Reserves % 0.3% 0.7% • LGD increase driven by lower current asset recovery value

92

46
 GECAS

93

GECAS dynamics
Who we are and what we do

• Global fleet with ~1,500 owned and

~350 managed aircraft plus order book
• Broad range of leasing, financing and
servicing products
• Expansive geographic footprint: 28
offices serving ~230 customers in over
70 countries … a leader in emerging
markets
• Experienced team with deep technical,
financial, marketing and restructuring
expertise
• Full asset lifecycle management

94

47
 Industry overview (GECAS
(GECAS
Impact)
Industry World fleet PAX fleet)
Cargo
↓ Anticipated global traffic declining by ’08 Total Aircraft
2,072 More
… trending higher World
Efficient
Fleet Parked 1,386
Total 13,964
↑ Aircraft demand continues to slow … OEM =
World
Fleet (e.g. 737, A320,
20,392 2,025
order deferrals; fleet reductions increase Passenger
777, A330, 744,
CRJ, ERJ, EMB)
Fleet Total
via retirements/scrapping/parking Active
=
World
↑ Lower jet fuel prices helps compensate for 18,320
Passenger Least
weakness in demand Fleet Efficient
= 2,331 21
↑ Due to pro-active capacity cuts & 16,295 (e.g. MD80,
732, BAE, DC9,
alternative revenue fees, U.S. slightly 727, A300, 742)
better positioned
↑ Accelerated retirement of least efficient Total Parked Passenger Aircraft = 2,025
aircraft
In- Parked Older Age VIABLE
↔ Capital markets liquidity scarce … harder Transit LESS >1yr LESS Types LESS >20yrs = PARKED 0
to secure financing (194) (865) (459) (156)
351

GECAS well-positioned to manage through another cycle:

9 Asset-based financing 9 Strong industry experience
9 Proven placement capability 9 Diversified portfolio

95

Strong asset backed financing &

industry expertise
Industry/airline • Continuous prospective focus on industry/assets: monitor production
monitoring rates, passenger growth and retirements to anticipate cycle
• Frequent and direct dialogue with OEMs/airline management on current
products, new technologies, and forecasts

Equipment • Asset based lender/investor with significant technical expertise

• Target high quality collateral – excellent buy & hold aircraft
• Limited older and out of production technology

Proprietary • Forecasts of aircraft value and loss given default models

valuations tool • Cross-functional steering committee of aviation experts establishes/
reviews values, leveraging GE market intelligence

Focused approach on assets utilizing deep domain expertise

96

48
Demonstrated placement capability
GECAS approach Performance
• Advanced placement of roll-off and skyline, Placement as of 1Q’08:
easing cycle impact
2008 2009 2010 2011
– Remarketing initiated at least 18 months
in advance of expected re-lease date Roll-off 99% 66% 23% 0%
Today 90% 37% 15%
– 80+ technical specialists servicing assets
globally New Order 100% 100% 95% 51%
Today 100% 100% 69%
• History of pre-placing assets in anticipation
of restructurings at weaker credits… actively 9 Stronger position than last downturn …
manage exposures placed ahead of projected cycle
– Minimize losses, AOG & downtime 9 Closely monitoring & placing unanticipated
– Bi-weekly portfolio review process roll-offs (52 in 2008, 16YTD in 2009)
– Granular watch rating system

Placing ahead … and through downturn

97

Diversified portfolio
RJs
Cargo
Key comments
9%
Leased assets

16%
• Portfolio*well positioned with high demand, widely
used, fuel efficient aircraft
Wide-body 20%
55% – Average age: 7 years
Narrow-body
– ~85% of fleet is < 10 years old
20% – ~85% of narrow body fleet is high demand
Other A320 & 737NG
Loan 2%
– Majority of wide body fleet has broad user base
Products

19 %
and can be readily redeployed (777 & A330)
Operating
Finance 14 % Lease • Deliberate evolution of portfolio to operating
Lease
leases & secured loans
6 5%

– Defensive loans provide cross collateralization

Europe
Asia with good LTVs
19%
20%
• Asset-based approach facilitates redeployment
Regions

7%
C&LA and mitigates airlines’ credit quality
5%
Canada – Strong track record managing through similar
US 34% 15%
cycles
MAC
• Geographically diverse

Attractive portfolio mix supports cycle management

*% of Aviation exposure $’s at 4Q’08

98

49
Stress analysis
(Pretax $ in millions)
Aircraft values Impairments/losses
Values are driven by changes in supply & demand ’09 outlook: assumes a higher 1-yr decline vs. the
average 1-yr drop during last downturn
~$265
AIRCRAFT
VALUES

DEMAND SUPPLY
$128
(Traffic) (Active Fleet) $109

WORLD PRICE FLEET FLEET

Fare ENTERING EXITING
GDP Stimulation
’07 ‘08 ’09 Outlook
Production Retirements
EU GDP
US GDP

OTHER GDP
AS GDP
LA GDP

Utilization Parking Base: assumes the worst 1-yr decline from last downturn
New OEMs Conversions
occurs in ’09
US GDP impacted by: unemployment, Adverse: assumes the worst case peak-to-trough cycle
housing, production, etc
decline in last downturn (’00-03) all occurs by ’09
Current dynamics ~$635
• All aircraft types are expected to be negatively
affected by global recession ~$320
• Weaker outlets for older aircraft ~$265
• OEM production cuts, retirements & parked aircraft
mitigate portfolio impact

’09 Outlook Base Adverse

99

Proactive approach to distressed

accounts
Assess airline’s long term viability (franchise strength and credit outlook) and ease of asset redeployment
• If viable and willing but unable to pay: consider deferral, larger restructuring, defensive deal to provide
liquidity, aircraft put and call rights
• If airline not viable: take early, aggressive action to repossess /redeploy
• If airline unwilling to pay: pursue claims aggressively (if necessary, litigate)

Restructurings/defensive deals: Fleet redeployments:

Improved collateral position with 36 from Varig (’02-’03)
1
~$155MM spares loan – 4Q’08
22 from ATA (’05)
Improved collateral position with
2 7 from Kitty Hawk (’07)
~$240MM aircraft loan - 3Q’08

6 from Kingfisher (’08)

Improved collateral position through
3 ~$360MM spare parts/engine loan – 4Q’08 8 from XL Aviation (’08)

Successfully managed through previous periods of distress

100

50
Summary
40+ years experience and strong customer relationships

Asset-based approach to business; broad product set with

full life cycle management

Demonstrated global redeployment capability supported by

world-class technical department

Pricing and risk discipline with proactive portfolio focus

Successfully managed through multiple cycles

Proven track record

101

U.S. Consumer

102

51
 U.S. Consumer Finance
2008 Served assets Who we are and what we do
Dual Card • Founded in 1932
$8.1B Retail
$9.5B
• Diversified consumer lender; $31B PLCC
CareCredit
& $22B Sales Finance managed
PLCC
$22.9B
$4.8B receivables ($27B on book)
Power
RVM
$3.7B • Broad geographic distribution with
$3.8B investment grade partners … over
~140,000 retail & merchant outlets
• 76% of receivables with A & B credit
quality customers … avg. FICO 694
• 56MM active accounts … avg. bal. ~$950
• Exited U.S. mortgage in 2007
• ~10,000 employees

Long history of profitability challenged in current U.S. environment

103

Tough U.S. retail environment

U.S. retailer sales GE programs
YoY % change
Retailer Sales Retailer
Retailer Feb. ’09 Act. YoY V % GE YoY %
4%
2% $1,316 (9%) (17%)
0%
(2%) $539 (14%) (24%)
(4%)
(6%) $745 (7%) (14%)
(8%)
(10%)
$3,046 (4%) (17%)
(12%)
(14%)
Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb $20,071 +8% (10%)
'08 '08 '08 '08 '08 '08 '08 '08 '08 '08 '09 '09

GE risk actions driving volume down

104

52
 Private Label vs. Bank Cards
(2008) a)
GE PLCC Bank card
Avg. served assets ($13.5B on book) $29B ~$850B
Smaller loss
Average balance $620 $3,000 severity … 23% of
industry line &
Average credit limit $2,512 $10,800 21% of balance

Sales/active $1,298 $5,580

Turnover (months) 5.7 6.5
Higher margins
Margins (net CV/ASA) 19.7% 12.4% to cover losses
… 2x Spread
Write-offs (NCOs)/ASA b) 7.1% 6.0%
% of accounts that charge off 5.7% 4.1%
Spread (ex-reserves & OPEX) 12.6% 6.4% Comparable
credit quality
Avg. FICO 699 700
Profit sharing Yes No Dampens
losses
a) Source: Citi, Chase, BoA, Cap One 2008 quarterly reports and supplemental datasets & Argus Syndicated Studies
(3Q’08 Co-Brand Retail Benchmarks)
b) Excludes benefits of profit or (loss) sharing with retailers

PLCC has higher yields on smaller balances

105

Significant Underwriting actions

Raised cut-offs and reduced approvals Risk actions
Previous Year Avg. FICO Approval rates New Accounts
Current Year +38 FICO (460 bps.)
768 54.9% 52.7% 53.4%
728 744 730
48.3%
51.3% 9 PLCC FICO cut off to 640, DC to 760
46.7%
Avg. U.S.
FICO: 693 9 Sales Finance FICO cut off moved to 710
9 New account lines down 10% PLCC & 20% SF
October February 3Q 4Q February
Portfolio
Cut credit lines 9 Cut lines 37% in PLCC & 43% in Dual Card
(20%)
$1,610 (39%) $4,953 9 Removed $216B of ‘Open-to-Buy’ through
$3,984
$990
account closures & credit line decreases
9 No authorizations on delinquent accounts
Revolving Sales 9 No over limit authorizations on Accounts
Finance <780 FICO … cutting out 2.5MM
Cut open to buy ($B) authorizations
$372 $36 ($200) ($216B)
9 Exited higher loss portfolios … RV/Marine &
($16) $192 Home Improvement portfolios ($4.1B)
9 Added over 1,000 Collectors to mitigate
’07 New ’08 1Q’09 ’08 delinquencies
Volume Red. Red.

Began underwriting activity in early 2007

106

53
 New PLCC volume profitable
New volume RACV by FICO band
No new accounts Credit line decreases Dual card
Risk action + credit line decreases on existing accounts cutoff 760
19% on existing accounts

14%

9%
Return hurdle

4%
<586
FICO (1%) 586-610 611-640 641-670 671-695 696-725 726-755 756-780 781-810 811-835 836+
GE Risk grade D/C C C/B B B/A A A/A+ A+
Average

(39%) 7.7% U/E

8.4% U/E
8.9% U/E

Risk actions in place for higher unemployment

107

Driving yield to offset losses

Revenue / Average Net Investment %
19.64% +129 bps. 1 Yield up with more challenging economy
18.35%
17.88% 9 Revolve rates +240 bps. SF, +86 bps.
PLCC
9 Average late fee +5% for Sales
Finance & 9% for PLCC
2007 2008 2009 Outlook
Late Fee % 3.68% 4.06% 4.61% 55 bps. 2 Increase Pricing
Price 9 Avg. APR up ~60 bps.
+$193MM 9 Late Fee assessments up: +620 bps.
$592 Sales Finance & +330 bps. PLCC
Additional
100 opportunity 9 Terms: changes driving other fee
$399 110 Merchant income +$50MM
50
$228
382 Consumer
3 Merchant Pricing up
349
9 Renegotiate contracts
9 Promotional pricing up 25% YoY
2007 2008 2009 Outlook

Driving $592MM price to mitigate higher losses

108

54
 Credit Costs increasing
Credit Cost (on book) Entry rate at historic lows
11.49% (133bps.)
11.37%
4 yr. Avg.
13.51%
10.93% 10.84%
11.28%

10.52%
11.10% 3.93% 10.40%
Actual
9.95%

4.91%
6.96%
1Q '06 3Q '06 1Q '07 3Q '07 1Q '08 3Q '08 1Q '09
Reserve Change 2.79% t
9.58%
3 due CE
Collections more challenging
6.19% 52.4%
46.5%
47.9% (850bps.)
Write Offs (NCOs) 4.17% 4 yr. avg. 42.6% 43.8%
45.0%
39.0%
36.5%
4+ CE
’07 ’08 ’09 Outlook 22.63%
19.52% 20.42%
17.88%
Reserve % 3.29% 5.77% 6.77% 4 yr. avg.
18.3%
30+ DQ. (Served) 5.53% 7.19% 7.88% 15.90% 15.15% 16.23%

90+ DQ. 1.98% 2.82% 3.46% 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q

'06 '06 '06 '06 '07 '07 '07 '07 '08 '08 '08 '08 '09

Entry rates reflect tightened underwriting…

still seeing pressure on backend collections

109

Delinquency - U/E correlation

DQ. vs. U/E
YOY % change
80%
U/E
U.S. unemployment 70%
60%
Underwriting
actions DQ – U/E
50% Variance
Historical ratio
40% 90+
Feb. 8.1% vs. (U/E:Write-Off)
10.0 Fed. Adverse 30%
7.3% Plan 1 : 1.1 30+
9.3 20%
8.8 9.0 Fed. Base
8.5 10%
8.9
8.5 8.5 ‘09 Outlook 0%
7.6
8.1 8.0
7.6 -10%
7.4 2008
7.2 7.2 -20%
-30%
6.2
Jan-06 Jul-06 Jan-07 Jul-07 Jan-08 Jul-08 Jan-09
5.5
4.9 5.1
• Unemployment outpacing Delinquency
r

– 6 month U/E average µ 48% YoY

y

ry

ne

r
h

ly
ril

er
t

be
ay

be
be
s
ar

Ju
ua

Ap

gu

ob
Ju
ar

em
nu

em
em
br

Au

ct
Ja

ov
Fe

ec
O
pt

N
Se

– Average 30+ delinquency µ at 27%

– Average 90+ delinquency µ at 32%

Historical DQ – U/E correlation breaks in July ’08 as

U/W actions take hold

110

55
Global Consumer stress test framework
Input Risk assessment & Output
Macro environment decisioning model (RAD) • Analysis by geography &
Volatility & inter dependency relationships product type & segments
Scenario Generator
• Interest rates
• Monte Carlo simulation • PD, LGD and Loss
• Unemployment
External distributions by scenario
• Wages & inflation • Possible paths of
Forecast
• House prices macroeconomic variables
range
• Refinance • Sensitivity to individual
opportunities
Model risk drivers (macro +
• Default = borrower’s option assumptions)
Risk layers • Exercise probability based on:
• Credit grade – Cash flows (DTIR) Uses
• LTV – Leverage (LTV)
• Loss and capital
• Debt-to-Income (DTIR) • Non-linear relationships: adequacy planning
• Product structure – Skewed distributions • Risk mitigation planning
• Credit insurance – Fat tails
• Portfolio strategy
• Severity: collateral/collections
Portfolio performance & assumptions
• Observed PD/ LGD Validation
• Cure rates & Refi rates
• Quarterly back testing
• Recovery assumptions
• Roll rate analysis
• Additional loss on sale
assumptions
triangulation

111

Stress scenarios – PLCC

Portfolio overview ($30.4B) 2009 Outlook & stressed scenarios
On book $13.5B
’08 Stress assumptions
A 17% B 21% 12% ‘09 Fed. Fed.
2007
14% Key variables ‘08 Outlook Base adverse
C 12% Pre 2007
A+ 37% 74% Unemployment 5.8% 7.7% 8.4% 8.9%
D 13% (average)
Recovery rate 12.3% 8.0% È10% È25%
Credit distribution Portfolio vintage
90+ Delinquency 3.5% 3.6% 4.3% 5.0%
• 54% prime book
• Average FICO 699 Credit Cost % 12.1% 16.3% 18.9% 21.3%

Key metrics Est. Credit Cost $1,530 $2,202 $2,552 $2,879

2008 2009
Actual Outlook
30+ (Served) 7.5% 8.1%
Stress case does not include :
90+ 3.5% 3.6% 1 Stimulus benefits
Net Write-offs 956 1,621
(NCOs) 2 Future benefit from risk actions
Credit Cost 1,530 2,202

Reserves % 6.0% 6.1%

112

56
Stress scenarios – Sales Finance
Portfolio overview ($21.5B) 2009 Outlook & stressed scenarios
On book $16.0B
Stress assumptions
A 24% ‘09 Fed. Fed.
B 17% Pre 2007
31% ’08 40% Key variables ‘08 Outlook Base adverse
C 11%
A+ 37% Unemployment 5.8% 7.7% 8.4% 8.9%
D 11%
2007 29%
(average)
Recovery rate 12.4% 7.8% ↓16% ↓25%
Credit distribution Portfolio vintage
90+ Delinquency 2.4% 3.3% 3.8% 4.1%
• 61% prime book
Credit Cost % 10.3% 11.1% 13.7% 15.0%
• Average FICO 685
Est. Credit Cost $1,515 $1,784 $2,194 $2,398
Key metrics
2008 2009
Actual Outlook
30+ (Served) 6.8% 7.7%
Stress case does not include :
90+ 2.4% 3.3% 1 Stimulus benefits
Net Write- 744 1,204
Offs (NCOs) 2 Future benefit from risk actions
Credit Cost 1,515 1,784

Reserves % 5.4% 7.7%

113

Mortgage

114

57
Mortgage overview
($ in billions)
Overview Net income history
• $60B assets across 19 platforms $1.2 $1.1
$0.9
ANZ France $0.7
4Q’08 $13 $11
Poland $5
assets
U.K. Mexico $2
Hungary $1
$22 Spain $1 ’05 ’06 ’07 ’08
Others $5 (12 platforms)
ROI% 1.6% 1.7% 1.9% 1.6%
• Protected by Mortgage Insurance (MI)
>80% current
61% A/A+ credit rating
Platform LTV with MI Exceptions
U.K. 66% Pre ’03 vintage, HPI impact
59% 61% 61% 62% 62% 61% A+/A
Australia 96% Run-off portfolio

France 31% Seasoned book; Prime

23% 21% 20% 20% 20% 21% B
Poland 100% n/a 18% 18% 19% 18% 18% 18% C/D

• Exited $1.5B ANZ assets in Feb ’09 '06 '07 1Q '08 2Q '08 3Q '08 4Q '08

>80% A/B credits and MI protection

115

Mortgage portfolio performance

90 day delinquency (top 4 markets) Annualized credit costs
90%
DQ 14% U.K. 1.1%
rate 12% Credit costs / ANI
10% 0.7%
8% Total Mortgage

6% 0.3% NCO /
0.2% 0.2% 0.2% ANI
4% Australia 0.1% 0.3%
2% France 0.0%
0.1% 0.1% 0.1%
Poland
0%
Sep ‘07 Dec’07 Mar ‘08 Jun’ 08 Sep ‘08 Dec ‘08 Feb ‘09 Q3'07 Q4'07 Q1'08 Q2'08 Q3'08 Q4'08

Indexed portfolio LTV (top 4 markets) Intense focus on REO

Avg. value
70% 2,000 $100,000 $1,868 Total
Mortgage
with MI $1,354
>80% 49% 1,500

1,000 217 Australia

189
500
<80% 51% 557 986 U.K.
0
'08 Q3'07 Q4'07 Q1'08 Q2'08 Q3'08 Q4'08

116

58
Shrinking Mortgage everywhere
($ in billions)
Originations ENI
$72.7 Down
$25.4 $21.4
Down $61.3
$24.4
$51.3
$13.8

$1.0
’07 ’08 ’09 outlook ‘07 ’08 ’09 outlook
Country 2008 2009 outlook V$ V% 2008 2009 outlook V$ V%
U.K. $4.8 $0.1 ($4.7) (97%) $22.4 $19.7 ($2.7) (12%)
ANZ 2.1 0.1 (2.0) (97%) 12.6 8.4 (4.2) (34%)
France 2.3 0.5 (1.8) (79%) 11.1 10.2 (0.9) (8%)
Poland 1.5 0.1 (1.4) (91%) 5.2 4.5 (0.7) (14%)
Others 3.1 0.2 (2.9) (94%) 10.0 8.5 (1.5) (15%)
Total $13.8 $1.0 ($12.8) (93%) $61.3 $51.3 ($10.0) (16%)

Cut volume dramatically … February YTD down 88%

117

Mortgage portfolio composition (’08)

Assets Avg. Avg. 30+ 90+ NCO Total
Country ($B) loan ($M) Prime Orig. LTV DQ DQ % MI% # of insurers/ Rating

U.K. $22 $94 26% 78% 21.0% 11.0% 0.4% 36% 2; A+/Negative, A+/Negative

Australia 13 174 84% 79% 4.9% 2.0% 0.2% 94% 2; AA-/ Stable, AA-/Negative

France 11 155 87% 71% 2.0% 1.1% 0.1% 16% 1; A+/Stable

Poland 5 66 98% 73% 1.2% 0.4% 0.0% 40% 1; BBB

Mexico 2 105 70% 68% 8.3% 4.8% 0.3% 22% 1; Government entity

Spain 1 94 74% 68% 23.2% 13.6% 0.7% 13% 1; A+/Negative

Hungary 1 34 98% 57% 3.0% 1.0% 0.0% 15% 1; A+/Negative

Vast majority of portfolio protected by

strong credits, low LTV and insurance

118

59
U.K. Home Lending (U.K.-HL)
($ in billions)
$22B mortgage assets • Created from acquisitions of
igroup (’01) & First National (’03)
1st mortgage • Originations through
$19.1
intermediaries
• In-house underwriting,
2nd mortgage collections & asset management
$2.6
• Mortgage originations down
Originations 97%
$10.7 • Solid LTV. … 78% and MI
Down
$10.6 coverage on 66% of > 80% LTV
$4.8 • Reorganized business to focus
on collections & loss mitigation
$0.1
’07 ’08 ’09 • ~1,350 employees
Repositioned to de-risk the business

119

U.K.-HL comparison to U.S. lenders

U.S. GE U.K.-HL
Our
Business model Originate to sell Originate to hold Balance
Intermediaries Non Regulated 100% Regulated Sheet

Consumer
− Owner occupied ~70% ~97% Better
− Unemployment (’08) ~7.2% ~6.3% Consumer
dynamics
− Bankruptcy filing Low barrier High barrier

House supply Oversupply Shortage

Loan
− Origination LTV 100%+ ~78%
Better
− Pricing Variable teasers ~60% fixed credits
− Term (avg.) 30 years 20 years
Mortgage insurance Minimal 66% of >80% indexed LTV
Expect
30+ DQ rate (’08) 40-45% ~21%
3-5% in
Write-off rates (’08) 10-12% <1% ’09-’10

Pressured by U.K. economy, but

fundamentally different from U.S.
120

60
U.K. economic environment
GDP % -a)
3.4%
3.0
2.6
1.8
0.3 ~0%
-1.8 -3
3Q’07 4Q’07 1Q’08 2Q’08 3Q’08 ’10 forecast

4Q08

’09 forecast
HPI % (YOY change) –b)
10.7%
5.2
1.1 -6.1 -12.4 -16.2 -17.7 -10 -5%
3Q’07 4Q’07 1Q0’8
2Q’08 ’10 forecast
(a- Source: Global Insight
’09 forecast
(b- Source: Actuals from HPI; GE forecasts 3Q’08
4Q’08
Feb ‘09

Planning for a difficult environment

121

U.K. collections and loss mitigation

New collections organization Actions taken
Portfolio
management
9 New organization in place
9 Dedicated loss mitigation group
Loss
MI COO mitigation

9 Top talent focused on collections/

Tracking & Customer Secured Unsecured Set up
workouts
monitoring service collections collections

9 Increased collectors 3x to ~510

Liquidation:
Dialer 0-90 90+ WO’s, short

9 Structuring hardship & workout

sales

2nd 0-90 i/b &

offers based on segmentation
analysis (LTV, recent payment
1st 0-29 inbound 1st 90+ inbound Retention:
non-high risk
& outbound and outbound Modification
o/b

1st 30-90 i/b &

history & product type)
2nd 0-90 high 2nd 90+ inbound
non-high risk risk outbound and outbound Advisors
o/b

9 Engaged McKinsey … on site

1st 30-90 high
risk o/b
Litigation supporting new process
9 Weekly reviews

Shifted entire organization to focus on collections / workouts

122

61
U.K. credit experience
30+ & 90+ Delinquencies Net Charge-offs (NCO)
($ in millions) $115
30+ DQ rate 21.0%
90+ DQ rate
15.3%
14.4% 14.4%
$69
13.3%

11.0% $25 $29

7.4% 7.0% 6.8%
$14
6.3%

’04 ’05 ’06 ’07 ’08

NCO% 0.1% 0.1% 0.3% 0.1% 0.4%

2004 2005 2006 2007 2008

Drivers of NCO Reserving policy

($ in millions) Past due / event Policy
$115
• Base reserve Model driven
Loss on sale ~$17 9 Added ~340 collectors
• 90 days Non-earning; Revenue suspended until
9 New Loss Mitigation team account cures to < 90 days
360+ days / ~$124
Quarterly 9 Intense REO focus … CFO • 360 days/ Repo Marked to Net realizable value;
MTM led Quarterly marks thereafter
9 MI provides protection • Repo sale Book final gain / loss on sale
MI recoveries ~($26)
’08
DQ’s pressured by weaker economy

123

U.K. Mortgage insurance coverage

($ in billions)
1st Mortgage coverage Insurance example
’08 assets $19.1B
With MI No MI
Property Value (PV) $200,000 $200,000
No MI
Original LTV 90% 90%
$11.4
MI Loan Amount $180,000 $180,000
80% of PV $160,000 N/A
$7.7
Insurance coverage $ 20,000 $0

PV with -15% HPI $170,000 $170,000

9Coverage for 80% or greater LTV Re-Indexed LTV 106% 106%
originations … in place since ‘03
Loss before MI $10,000 $10,000
9Insurers rated “A” … locally regulated &
MI claim $10,000 $0
capitalized
Net loss $0 $10,000
9Certification process at origination
9~99% claims effectiveness
959% of delinquent balances with > 80%
LTV covered by MI
MI provides additional credit support

124

62
 U.K. risk layering and losses
($ in billions) 1st Mortgage 2nd Mortgage
Total $19.1 $2.6
80-
Indexed 0-80% 80-90% >90% 0-80% 90%
>90%
LTV% $7.2 $3.3 $8.6 $1.2 $0.5 $0.9
A+/A B C/D A+/A A+/A B C/D A/B C/D A/B C/ A/B C/D
Credit B C/D D
$1.9 $2.6 $2.7 $0.6 $1.3 $1.4 $3.6 $3.4 $0.7 $0.5 $0.3 $ $0.7 $0.2
Grade $1.6 0.2

90+ DQ % 6.8% 10.8% 13.8% 9.7% 14.6% 20.7%

Non-earners to NCO
$2.4 ($0.8)

($1.3)

($0.1) $0.2

90+ DQ Cure Est. collateral Est. MI Est. net

Non-earners value charge-offs

LTV and MI mitigate charge-offs

125

U.K. Mortgage stress scenarios

Portfolio overview ($22B) 2009 outlook & stressed scenarios
Sources for macro economic outlook range:
FSA guidance on stress testing, CML (Council of Mortgage Lenders), Global
>100% ‘08 17% Insight, Moody’s Economy.com, RICS (Royal Institution of Chartered Surveyors)
B 38%
C 24% Indexed 27% <80%
Credit LTV mix Pre 2007 38%
mix 90-100%
49% 80- ’09 U.K. U.K.
2007 34%
A 20% D 12% 18% 90% Key variables ’08A Outlook Base Adverse
17%
A+ 6% Unemployment 5.7% 7.4% 8.5% 9%
(average)
• Avg. origin LTV: 78%
• Avg. indexed LTV: 84% HPI decline ↓19% ↓10% ↓12% ↓15%
• Vintage: Pre-’06 26%, ’06 23%, ’07 34%, ’08 17%
Loss on sale 5% 12% 20% 25%
Key metrics
$MM ‘08 A ‘09
outlook Estimated credit $201 $558 $995 $1,125
costs $MM
30+ 21.0% ~29.2%
Estimated credit 0.7% 2.6% 4.5% 5.1%
90+ 11.0% ~16.5%
cost %
Net Charge offs $115 ~$159
(NCOs) Stress case also includes:
Credit costs $201 ~$564
1 Limited refinance ability for high risk segments
Reserves % 0.8% ~2.9% 2 Counterparty risk to mortgage insurance reliance

126

63
Mortgage stress - remaining portfolios
($ in millions)
Credit costs Key stress assumptions
Fed Base Fed Adverse ’09 outlook Base Proxy Adverse
Portfolio (assets) ’09 outlook Proxy Proxy Proxy
Australia
HPI decline 2% 5% 10%
Australia $13B $4 $6 $43 Addn’l loss on sale 15% 20% 25%
Unemployment 5% 5% 6.4%

France $11B 21 30 59 France

HPI decline 0% 5% 15%
Addn’l loss on sale 20% 20% 30%
Unemployment 8% 8.6% 9.2%
Mexico $2B 9 12 37
Mexico
HPI decline - - 10%
Spain $1.3B 55 71 100 Addn’l loss on sale - 15% 20%
Unemployment 4.3% 5% 5.8%

Spain
Ireland $0.9B 8 35 47 HPI decline 30% 35% 45%
Addn’l loss on sale 15% 15% 15%
Rest of World $3.6B 18 22 62 Unemployment 13.9% 20% 22%
(Ex UK and CEE) Ireland
HPI decline 9% 15% 19%
$115 $176 $348
Addn’l loss on sale 13% 20% 20%
Unemployment 9.2% 13% 19%

127

Summary
U.S. Consumer
9 Took loss actions early … entry rates down
9 Mitigating losses with profit sharing and revenue actions
9 Solid reserve position … 2x non-earnings

Mortgage
9 Low risk and stable performance outside U.K.
9 Solid U.K. underwriting, low LTVs and MI mitigate
down cycle
9 Aggressive collections/loss mitigation focus

Prepared for challenging U.S. and U.K. economies

128

64
 GE Capital
Global Banking

129

Emerging markets bank dynamics

Who we are and what we do
Assets $6.7B
Czech/
• Wholly owned banks ($27.8B) + bank JVs ($4.7B)
Assets $11.7B
Slovakia
Assets $4.7B - ~ 3,000 branches
Poland - ~ 25MM customers
Hungary
• 15 countries presence … diversified assets
Assets $0.8B - 89% Europe
Assets $0.6B
Latvia - 8% Asia
Romania - 3% Central America
• Well positioned in core markets
Assets $1.0B Assets $1.0B
- Top 3 in Turkey & Central America
Latin Russia
America - Top 5 in Czech & Poland
• High quality portfolio
Assets $1.9B Assets $2.5B
- Underwrite to hold
Turkey
Thailand - 82% A/B risk credit grades
- 56% secured financing

Strong franchise

130

65
Portfolio
Product portfolio Credit profile
$22B 4Q‘08 Receivables (%) a) Credit distribution (%)
Sales
Auto Finance D

7%
10% 8% C
Personal 11%
Loans
20% A+
46%
Mortgages 35% 19%
B
21%
6% 17%
SME

Cards A
a) $27.8B total assets

Diversified portfolio … 63% A/A+ credit quality

131

GE early mover in Eastern Europe

Financials
Poland ’05-’08 CAGR %
PAM ex-Acq. & FX
2005 2008
’95-’98-’08
Assets ($B) 10.5 27.1 20%
Czech/Slovakia
NI ($B) 0.3 0.5 15%
PROSPERITA
’97-’00 ROI (%) 2.8% 2.2% (40) bps.
Hungary

’01
Credit performance
Global
Russia Consumer%
30+% 5.72%
2.89% 7.47%
’04
Credit 2.42%
Romania/Latvia Cost % 1.79% 2.99%

’06

’02 ’03 ’04 ’05 ’06 ’07 ’08

Conservative entry … organic growth over time

132

66
Slower Eastern Europe growth
CEE GDP growth%* Oct.’08 forecast Mar. ’09 forecast

5.5%
4.8%
4.3%
3.8%
3.2%
3.0%
0.7%

(0.5%)
(2.0%) (2.0%) (2.0%) (1.8%)
(3.0%)

(12.0%)
Poland Czech Hungary Russia Latvia Turkey Romania
GE 4Q’08
Assets $11.7B $6.7B $4.7B $1.0B $0.8B $1.9B $0.6B
*Sources: EIU Reports February/March 2009

2009 loss planning reflects tougher environment

133

Eastern Europe outlook

Banking penetration remains low Current challenges driven by…

Total banking revenue / GDP 1 Macro imbalances

9.4% 101% 114%
6.8% External 52%
4.8% 4.7% 42% 31%
4.5% debt / GDP
3.6% 3.0%
Czech Hungary Latvia Poland Russia
ANZ North Asia* Latam WE Middle Eastern Deficit /
(1.4) (3.0) (1.9) (1.9) 3.6
America East Europe Surplus

Expansion led by EU accession & GDP growth 2 Currency volatility

2.2
March’08 March’09 V%
2.0 Latin
America Poland 2.2 3.5 ↓ 53%
1.8
Margins 2007, percent

Africa CEE Czech 16.0 20.4 ↓ 27%

1.6
1.4 Middle East Russia Hungary 163.9 228.4 ↓ 37%
1.2
North
India Russia 23.5 34.7 ↓ 45%
1.0 China
0.8
America 3 Structural dependencies
0.6 Czech Hungary Latvia Poland Russia
0.4 Western
Europe Exports/ 80 80 47 42 32
0.2 GDP
0
0 2 4 6 8 10 12 14 16 18 36 FX lending 8 57 88 25 21
Revenue CAGR (2000–2007)
* Asia excl. China, India and Japan Loans /
Source: EIU, McKinsey, FPK, UBS, Reuters Deposits 71 132 238 92 116

Near term potential volatility … long term attractive

134

67
Core Eastern Europe banks
#5 in Poland #4 in Czech #4 #8 in Hungary #8
Assets
$11.7B
29%* BPH 18% $6.7B 18% $4.7B
31%
39% 25% $3.4B $2.5B
$2.5B $1.4B
$0.6B $1.1

’00 ’04 ’08 ’00 ’04 ’08 ’01 ’04 ’08

30+% 4.2% 3.8% 2.2% 5.2% 2.1% 2.2% 1.4% 1.4% 2.7%

SF
Auto SF SF
Auto 1%
5% 7% 6% PLoans
11% Auto
PLoans 9%
19%
16% PLoans
Mortgages
30%
23%
Mortgages SME Mortgage SME
55% 13% 25% 42%
Cards SME
Cards
6% 24% Cards
4%
3%

A/B Credits = 87% A/B Credits = 84% A/B Credit = 91%

* CAGR % ex-Acquisition

Solid businesses… high quality portfolio

135

FX mortgage underwriting
1 Centralized underwriting & full docs on every loan
-Property valuations, income verification, etc.
2 Underwriting guidelines routinely adjusted based on FX rate
movements, wage growth, & interest rate changes
3 Conservative Debt to Income and Loan to Value ratios
-100% Mortgage insurance on >80% originated LTVs
4 No exotic products: low doc loans, self certification, interest
only, teaser rates, etc.
5 Borrowers qualified based on their capability to handle a
local currency loan, even though they are given a lower
interest rate FX loan
6 FX loans fully hedged with cross currency swaps

Extensive process with high standards

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68
FX mortgages
Poland ($4.5B) Hungary ($1B)
Credit distribution 30+ delinquency Credit distribution 30+ delinquency

3.0%
2.3% A+74%
1.2% A 24% 0.7%
A+ 95%

06 08 06 08
A 2%, B 2%
B,C,D 1% each

Avg. LTV=71% Avg. DTI =26% Avg. LTV=57% Avg. DTI =23%

Stress test ’09 Outlook Base Adverse Stress test ’09 Outlook Base Adverse
HPI È 4% 10% 20% HPI È Flat 10% 20%
FX È (from today) 15% 15% 30% FX È (from today) 5% 15% 25%
Unemployment 9.5% 10.5% 13% Unemployment 8.5% 9.4% 10.4%
Credit losses ($MM) $7 $26 $87 Credit losses ($MM) $2 $22 $49

• Strong credit quality

• Conservative underwriting
• Performing well

137

Stress testing approach

Approach Assumptions
Forum and frequency: Key Drivers:
• Operating plan & short range outlooks • Home prices
• Monthly portfolio reviews • Unemployment
• Product / portfolio deep dives Macro
• Currency rate movement
• Interest rates
• Loan to values
Purpose and use: • Debt to income
• Risk management mitigation planning Portfolio
• Credit quality
• Loss and capital adequacy planning • Additional loss on sales (mortgage)
• Portfolio expansion or exit
Key assumptions:*
Home price decline 10-20% further decrease
Oversight/Review: from today
• Banking Group CEO, CRO, CFO Unemployment 150-470bps increase
• GE Capital Investment Committee & Board depending on market
(selective reviews annually)
Currency movement Another 15-30% decline
from today

Robust process, oversight and testing * Source: EIU, Internal Inputs

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69
Banks stress test results
Stress test Stress test assumptions
’09 Outlook Stress Test V’09 ’09
Assets Credit Cost 30 + Base Adverse Outlook outlook Base Adverse
($B) ($MM) ($MM) ($MM) ($MM)
HPI flat (5)% (20)%
Czech $6.9 $128 2.2% $144 $167 $16-39 Czech Unemployment 5.3% 7.3% 10%

HPI (10)% (10)% (20)%

Russia 0.9 87 7.1% 94 161 7-74 Russia Unemployment 6.4% 7.4% 7.9%

0.6 63 24.3% 85 155 22-92 Unemployment 6.7% 9% 11%

Latvia Latvia

HPI (4)% (10)% (20)%

Poland 13.4 192 2.8% 230 328 38-136 Poland Unemployment 9.5% 10.5% 13%

Unemployment 1.4% 3.0% 5.0%

Thailand
1.2 113 9.0% 160 225 47-112 Thailand

HPI flat (10)% (20)%

Hungary 4.4 73 3.8% 163 232 90-159 Hungary Unemployment 8.5% 9.4%% 10.4%

Total $27.4 $656 3.6% $876 $1,268 $220-612

Under severe stress scenario … emerging market banks still earn ~$300MM

139

Summary
• Nearly 15 years experience in these geographies
9 Started small … organic growth overtime

• High quality book … 82% A/B credits

9 We underwrite to hold

• Strong delinquency & credit cost performance

9 30+: 5.72% in ’02 to 2.89% in ’08
9 Low credit cost at 1.79% in ’08

• Rigorous stress testing to get ahead of problems

• Adjusted originations to limit volatility

9 4Q’08: Reduced Mortgage/Auto originations È~50%
9 2009: Mortgage/Auto originations volumes planned È~80%
9 2009: A/B credit originations only

140

70
 Operations
update

141

Operating GE Capital
1 Tightly managing investment … 2009 YE ENI to $500B,
È$25B
2 Driving higher new business returns … new business
ROI Feb YTD ~2.7%
3 Taking substantial cost out … 2009 SG&A È19%
(ex-FX); Headcount È13% … 1Q on target to deliver
annual savings rate
4 Disposing/running-down ‘red’ assets … closed $23B of
dispositions, Feb YTD mortgage originations È88%
Driving results with rigorous operating processes

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71
2009 ending net investment
($ in billions)
ENI Dynamics
• Reduced volume across all portfolios
$525 V%
$500 (5%) • RE, Mortgage and U.S. Consumer
volume limited to commitments
• Limited BD activity assumed
Core 357 – Santander/Interbanca deals executed
356 –%
Jan. ’09
– ANZ Mortgage $1.5B closed Feb. ’09

• Enhanced collections activities

Banks 65
64 (2%) • Capital bi-monthly reviews
Restructuring 103 – Volume pipeline
80 (22%)
– Disposition activity
– Alternate funding
'08 '09
Outlook

143

2009 originations and collections

($ in billions)
1st half 2nd half Originations
+12B • Planned volume:
+13B $108 – Consumer: $125 - includes
$97 $96 revolving credit
Sales $84 – Commercial: $55
• Monthly pricing reviews
• Pricing floors with minimum
Collections target ROIs
Platform ’09YTD ROI
Americas ~2.9%
Asia ~2.5%
Sales/ Volume Sales/ Volume Europe ~2.4%
collections collections
Banking ~2.3%
EFS ~8.4%
9 Assumed sales/securitizations reduced to $25B
GECAS ~3.8%
È (19%) … $10B in 1Q
9 Assumed R/E equity sales reduced to $3B È (41%) • Platform sales potential
9 Actual collections will pace new originations
upside to volume and/or
collections

144

72
 Recent deals in core segments
Business Deal size Deal type Customer benefit Financials
Americas, $175MM Working capital facility for a Closed deal in 25 days 3.2% ROI
Corporate Lending global chemical customer

Americas, $100MM Asset-backed DIP finance for a Provided a wing-to-wing 9.7% ROI
Restructuring paper & packaging customer solution in a quick turn-
Finance around time
Americas, $89MM Senior loan for a medical Fast turn-around thanks 3.2% ROI
Healthcare Financial ($22MM hold) device customer to GE’s Healthcare domain
Services expertise
Energy $150MM 49% limited partnership with Maintained pipeline 11% ROI
Financial Services an Oil & Gas producer development program at
reduced debt

GECAS $290MM Aircraft sale leaseback and Provided liquidity 3.7% ROI
spare parts for a leading airline

Global Banking $13MM Short-term, line for a CEE Improve working capital 11.7% ROI
SME Financing energy customer management

Strong customer value delivery at high returns for GE Capital

145

SG&A cost
($ in billions)
$2.7B
$14.0 Focused approach
È25%
$11.3 19% ex-FX
1 Organization structure and headcount
FX 0.8
re-sizing… ~$1.0B
7.1
$10.5
9 Geographic consolidation
Direct
(C&B) 2
5.3 Sizing and indirect spending … ~$1.0B
9 Driving lower roof-tops
9 Lease, outside services, legal, sourcing and
5.6 consultant costs
Indirect
4.0
3
Operations Business exits … ~$700MM
1.3 1.2
9 Closing/exiting underperforming/non-
2008 2009 strategic platforms
Outlook (ex-Acq.)

Lean and competitive structure … $1.2B more out since 12/08 (ex-FX)

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73
Run-off/restructure redeployment
(ENI - $ in billions)
$103
Portfolio
~$80 9 Equipment Services
~$60 9 Consumer mortgages

~$35 9 ~15 Consumer/Commercial platforms

Game plan
9 Manage investment down ~$70B by
2008 2009 2010 2011 2012 … reinvest in core and funding
Outlook Outlook Outlook
model
Reduction: $23B $20B $25B
9 Primarily based on pay down/ term
~$70B investment 9 Opportunistically sell or swap

Reinvest Pay down 9 Maximize value – many attractive

in core CP & LTD platforms for banks longer term

2%-6% ROI Safer Focused organization with

funding model strong leader and clear charter

147

Recent dispositions – $23B

($ in billions)
Sales ENI Buyer Closed Region
Japan – Personal Loans $5.9 3Q’08

Australia Mortgage 1.5 1Q’09

Corporate Card 1.3 1Q’08

Office Imaging 0.5 2Q’08

Healthcare – Practice Solutions 0.8 4Q’08

Partnership Marketing Group 0.4 2Q’08

U.K. Unsecured 5.6 1Q’09

Germany 3.4 4Q’08

Austria 1.7 1Q’09

Finland 1.7 1Q’09

Reduced assets + exited ‘challenged’ markets

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74
‘Red’ assets process
• Frequency: BD leaders bimonthly reviews with senior leadership
• Rigorous pipeline review & status of ‘red’/‘yellow’ assets …
Resources working transactions and structures
• Consideration of asset swaps, JV’s, partial or full dispositions
• Content for review:
Pipeline Red/Yellow Status Prime the Pipeline
GE Capital

– Summary metrics of deal activity – Complete overview of ‘red’ & – Rack & stack process
– Active divestitures ‘yellow’ assets – Creative structuring
– Immediate visibility into status of – Recap of most current strategic – Market feedback
all deals assessment – Preparing platforms for sale

149

Operating GE Capital
1 Rigorous operating mechanisms

2 Controlled Capital allocation

– ENI to $500B or less
– Turnover to higher returning volume

3 Delivering cost out

4 Driving asset reallocation

– ‘Red’ assets È
– Lower leverage/higher returns… Mortgage È

150

75
 Financial
update

151

Summary losses and impairments

($ in billions)
Original Estimated Fed Estimated Fed
outlook base case adverse case
Commercial portfolio
- Real Estate $0.7 $2.4 $3.6
- Aviation and Energy 0.3 0.4 0.7
- Mid-market lease/lend 1.5 2.0 2.6
- Other Commercial 0.3 0.5 1.5

Consumer portfolio
- U.S. 4.3 5.1 5.7
- Non-U.S. Mortgage 0.6 1.2 1.6
- Other Consumer 1.9 2.2 2.7
Management planning 1.0 – –
Total ~$10.6 ~$13.8 ~$18.4

Capital Finance earnings ~$5B ~$2.0-2.5B ~$0

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76
Stress summary credit costs vs.
impairments Estimated Estimated
($ in billions) Original outlook Fed base case Fed adverse case
Credit Credit Credit
costs Impairments Total costs Impairments Total costs Impairments Total

Real Estate $0.3 $0.4 $0.7 $0.9 $1.5 $2.4 $1.0 $2.6 $3.6

Aviation/Energy 0.1 0.2 0.3 0.1 0.3 0.4 0.1 0.6 0.7

Mid-market
lease/lend 1.5 – 1.5 2.0 – 2.0 2.6 – 2.6

Other Commercial – 0.3 0.3 – 0.5 0.5 – 1.5 1.5

U.S. Consumer 4.3 – 4.3 5.1 – 5.1 5.7 – 5.7

Non-U.S. Mortgage 0.6 – 0.6 1.2 – 1.2 1.6 – 1.6

Bank/JV/Other 1.9 – 1.9 2.2 – 2.2 2.7 – 2.7

Mgmt. planning 1.0 – 1.0 – – – – – –

Total $9.7 $0.9 $10.6 $11.5 $2.3 $13.8 $13.7 $4.7 $18.4

153

Estimated stress impact

($ in billions)
Original Estimated Fed Estimated Fed
outlook base case adverse case
Pretax, pre-provision ~$13.3 ~$11.1 ~$9.2
Credit costs 9.7 11.5 13.7
Pretax 3.6 (0.4) (4.5)
Capital Finance net income ~5.0 2.0-2.5 ~0
GECC Corporate items (0.2) (0.2) (0.2)
GECC net income ~$4.8 $2.0-2.5 ~($0.2)

Estimated:
Fixed charge coverage a) ~1.52X ~1.32X ~1.19X
a) Includes capital contribution

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77
Estimated credit costs vs. estimated
Fed 1 yr. ‘adverse’ loss assumptions
($ in billions) GECC
2009 Estimated Estimated 1 year
12/31 financing outlook Fed base Fed adverse estimated Fed a)
rec. net of reserves loss rate loss rate loss rate loss rates
Real Estate $46 0.61% 1.94% 2.15% 2.95%
Aviation/Energy 24 0.28% 0.41% 0.70% n/a
Mid-market lease/lend 163 0.94% 1.22% 1.59% 1.57%b)
U.S. Consumer - Card 12 16.31% 18.91% 21.33% 9.35%
U.S. Consumer – Sales Finance 14 11.14% 13.71% 14.98% 4.95%
Non-U.S. Mortgage 59 1.09% 2.05% 2.76% –
Other Non-U.S. Consumer 50 4.18% 4.71% 5.71% –
Total GE Capital Finance $368 2.37% c) 3.13% 3.73%
Total GECC $371
Memo:
- U.S. Construction loans None 10.60%
- 1st lien residential None 3.90%
- Home Equity/2nd’s None 6.15%
a) Derived from Goldman Sachs Equity Research
b) C&I loans used for leveraged loans, “other leases/loans” for equipment
c) 2.63% including $1B management planning additional losses

155

Top bank 3σ stress

2009 outlook Losses & impairments

• Stressed $266B financing

receivables in proprietary model $368B
Financing $14.5B
receivables $13.7B
• For $102B non-U.S. consumer
receivables assumed growth in loss
rates 50% higher than U.S.

• Scenario
– 9.4% peak U/E 2Q’10 (4Q’09 9.2%)
– 30% peak to trough housing decline 3rd party 3σ GECC
stressed adverse
• Stressed 3 std. to 95% confidence case

• Did not specifically stress assets • 2008 back-testing of their results vs. actuals
beyond financing receivables – 15% lower than modeled

3rd party 3σ stress within 5% of adverse stress of financing receivables

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78
 Key ratios – GECC
TCE/TA ratio Tier 1 common ratio c)
6.1% b) 6.9% a) 7.1%
5.9% a) 6.5%

3.4% 4.4% 5.8%

4.9% 3.1%
2.1% 2.3%
1.1% 1.2%

JPM BAC WFC Citi GECC GECC JPM BAC WFC Citi GECC GECC
4Q’08 4Q’08 4Q’08 4Q’08 4Q’08 ’09 4Q’08 4Q’08 4Q’08 4Q’08 4Q’08 ’09
Adverse Adverse
Stress Stress

RWA/ TCE/Risk weighted assets

Total
Assets 61% 72% 84% 51% 93% • Strong tangible equity ratios even in adverse
6.2% b)
6.0% a) case
5.4%
– Ratios improve vs. pro-forma 4Q’08 in adverse
5.0% case due to balance sheet shrinkage
2.7%
2.3% • Tier 1 common ratio strong in adverse case,
1.2% well above 5.5% estimated regulatory target
post stress
JPM BAC WFC Citi GECC GECC • Tangible equity reflects $5.3B unrealized loss
4Q’08 4Q’08 4Q’08 4Q’08 ’09
4Q’08
Adverse on investment securities
a) Adjusted for equity infusion & CTA/OCI impact Stress
b) Assumes no changes to FX and level of unrealized losses
c) Using data provided by Citi for peer group

157

Financing receivables reserve

methodology
$371B Accounting model Methodology
U.S. Consumer
FAS 5 Consumer
Non-U.S. • Formulaic calculation for smaller • Primarily roll rate models
Mortgage balance homogeneous loans • Write-off policy
• Estimate of incurred losses imbedded in – Closed-end installment – 120 days
portfolio at a point in time
$226B Other
Consumer – Not life losses or future losses not
– Revolving – 180 days
– Mortgage – 360 days
yet incurred

Mid-Market
Commercial
lease/loan • FAS 114
– Specific credit or collection evaluation
Other approach
• FAS 5
FAS 114 – Primarily static pool model applying
• Specific reserves on individual loans historical loss curves
Corporate
loans deemed impaired
– PD x LGD history applied to loans
FAS 5
$145B • Formulaic calculation of losses
individually determined non-impaired
Real Estate
debt embedded in portfolio for which
Aviation/Energy a default or loss event has been Each methodology incorporates current
loans incurred but not yet observable
Franchise/Other trends and conditions and other
observable environmental factors
4Q’08

158

79
Non-earning reserve coverage
($ in billions)
Commercial
$3.2 1.1

228%
coverage
0.5
100%
recovery
0.8
$1.7
Loans in
recovery/
workout
Exposure
Expect full
Collateral
0.8
recovery
value on
remaining
exposure

Estimated
4Q’08 4Q’08
loss exposure
Non-earning Reserves

159

Non-earning reserve coverage

($ in billions)
Consumer
$4.7 1.4

3.3 1.0
Non-mortgage

$3.2
non-mortgage
1.8
reserves Cure

231%
coverage 133%
coverage

0.2 $0.4
0.3

Estimated Estimated
4Q’08 Mortgage Estimated
MI
4Q’08
non-earnings collateral loss
Non-earning value exposure Mortgage
reserves

160

80
Financing receivables vs. top U.S. banks
($ in billions, as of 4Q’08) GECC Top banks average a) Top banks
coverage
Reserve % Reserve % GECC asset
U.S. Consumer Receivables coverage Portfolio Receivables coverage Portfolio composition
- U.S. credit cards $12.7 6.30% 3.4% $238 7.8% 7% 7.8% x 12.7
- Residential mortgages - - - $1,078 2.3% 39%
- Auto - - - 2%
- Student loans - - - 1%
- Sales finance/other 18.3 5.46% 4.9% 580 1.7% 9% 1.7% x 18.3
31.0 5.81% 8.4% 1,896 3.1% 59% 3.94%
U.S. Commercial
- Real Estate debt 28.3 0.71% 7.6% 43.1 0.67% 17% 0.67% x 28.2
- Real Estate construction 0.6 0.79% 0.2% 13.1 9.35% 9.35% x 0.6
- Commercial loans 33.1 0.78% 8.9% 231.1 1.01% 1.01% x 36.0
29%
- Commercial leases 43.3 1.03% 11.7% 22.4 1.0% 1.00% X 43.3
$105.3 0.87% 28.4% $1,170 2.0% 36% 0.96%

U.S. reserves comparable

a) Consumer data avg. of Top 3 Banks
Real estate data source Top 5 Bank, loss coverage est. split construction vs. non-construction
Commercial loans and leases data source Top 5 Bank

161

GECS investment securities

($ in billions)

12/31/08 9 Assets primarily support the run-off insurance

State & Muni operations long term liabilities and guaranteed
U.S. investment contracts
Retained 2 corporate
interests
9 We do not have debt securities classified as
6 20 FAS 115 HTM

CMBS 2 9 $3.1B insured by monolines – $2.2B FSA, MBIA,

Ambac; $0.7B FGIC
4 9 $8B asset-backed securities; $1.3B subprime
RMBS
exposure ($1.1B wrapped by monolines) – no CDO’s
2
ABS
3 9 U.S. corporate debt :
1 1
Non-U.S. 9 70+% investment grade
gov’t./corp. U.S. Equity 9 600 Companies, 60 >$100MM book value
gov’t. 9 Largest single exposures Fannie & Freddie $0.8B
in total, Wells Fargo $0.3B, rest $0.2B or less
$41B

Diversified, predominantly long term debt-based portfolio

162

81
Investments
Impairment review process
• Compare fair value to book value; Is fair value <book value?
– 68% of portfolio priced via market price or pricing services, other non-binding
Measure
broker quotes, or internal models

• Evaluate underlying issuer or cash flows

– Debt securities – analyze 8 credit-related and financial performance criteria
Evaluate – Asset backed securities – run cash flow recoverability analysis
– Consider monoline wraps and ability to pay claims

• Challenge pricing service for a sample of securities; confirm process

• Confirm cash flow assumptions based on current market information
Test
• Compare subordination of our holding; compare to expected losses
• Corporate reviews of all securities with unrealized loss >$5MM and
>6 months underwater OR <6 months underwater and >20% decline,
Conclude regardless of test result
• Determine other than temporary impairments
• GE Corporate Audit Staff and KPMG audits

$1.4B pretax impairments in 2008 … estimated $0.7B at risk for 2009

163

GECC Goodwill
($ in billions)

FAS 142 Goodwill

reporting units as of 12/31/08 Methodology/frequency

Consumer $9.1 • Tested for impairment annually and whenever

events or circumstances make it more likely
Commercial Lending than not that fair value < book value
and Leasing 12.6 • If reporting unit fair value < book value, then
must fair value each identified tangible and
Real Estate 1.2 intangible asset. Goodwill impaired when
implied fair value < goodwill book value
Aviation 0.2 • Fair value of reporting units estimated using
discounted cash flow method; corroborated
Energy Financial Services 2.2 with market multiples, when available
• Retesting reporting unit goodwill for
GECC $25.2 impairment in 1Q’09
– No impairments indicated
– Continuing to monitor

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82
GECC Associated companies
($ in billions) View of
4Q’08 impairment risk
Investment Holding Investment a) Performance as of 2/09
Hyundai – Korea 43% $3.2 Stable Low
Garanti Bank – Turkey 21% 1.9 Outperform Low
CAMGE – Spain 50% 1.3 Stable Low
Bank of Ayudhya – Thailand 33% 1.1 Stable Low
GE Nissen – Japan 50% 0.9 Stable Low
BAC International – C. America 50% 0.7 Stable Low
Dogus GE BV – Romania 50% 0.5 Stable Low
Colpatria – Colombia 50% 0.3 Stable Low
Brunswick/Polaris – CFS 50% 0.3 Stable Low
Southern Star (LP) – Kentucky 60% 0.3 Outperform Low
Cosmos Bank – Taiwan 23% 0.3 Challenged Medium
All others 8.5 100+ partnerships, avg. $50 investment
$19.3
a) $18.7 GECS

165

Rigorous process for evaluating asset

impairments
(GECS $ in billions)
Assets reviewed for impairment Rigorous process
Primary
4Q’08 assets Frequency acc’ting. model • All FAS115 assets reviewed
Real estate owned $36.7 At least annually FAS144 quarterly for other than
Cost & equity method inv. 21.6 At least annually APB18/FAS115 temporary impairment
Retained interest 4.6 Quarterly FAS115
Debt securities 12.1 Quarterly FAS115
($8B Trinity) • Multiple layers of review:
Equipment leased to others At least annually FAS144 – Business unit
- Aircraft 32.3
- Equipment 27.3 – Capital Finance
Goodwill/intangibles 29.0 At least annually FAS142/144 – Corporate accounting
GECS Insurance securities 22.0 Quarterly FAS115 – CAS/Auditors
<2% assets subject to mark-to-market • All equipment coming off lease
4Q’08 assets 4Q’08 assets evaluated for impairment
Equities-trading $0.8 CMBS $–
FAS133 hedges – Assets held for sale 7.7 • All annual reviews updated if
Retained interest 1.8 -Money 3.1
(Consumer) -Real Estate 0.3
there is change in assumptions
-Other 4.3 or circumstance

Accounting models utilized are prescribed

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83
Summary
1 We follow the appropriate accounting guidelines

2 Our reserves are very comparable to banks in similar asset

categories

3 We are a secured lender

4 We do not see significant impairment risk in goodwill or

associated companies

5 We have sufficient capital even under adverse stress tests

167

GECC Summary
+ Outlook

168

84
Primary questions … the answers
n Commercial Real Estate
We will experience lower earnings through this cycle, but believe we have it covered in
our own business framework

o What is the risk in U.K. mortgage?

We expect credit losses will increase, but mortgage insurance and operational rigor
should help mitigate the impact to a manageable level

p What is the risk in Eastern Europe?

These are long established franchises. We expect credit losses to increase, but not
significantly higher than the rest of world

q What is the risk in U.S. Consumer?

We see a tough cycle driven by unemployment in 2009, and are planning for higher
losses in line with the industry

r Losses/Impairments/Reserves
We apply appropriate accounting policies. Our reserves are adequate for current
economic conditions

s Capital
Based on stressed losses, capital appears adequate. Further options available if
conditions worsen

169

GE Capital future
Why to like this business
Today Future
Banks
• Deposit funding with potential for growth
Commercial
Banks 10% • High margin new business
Verticals 15% • Consolidation + partnership potential
Real Estate
Verticals
Core
75% • 25+ year track record
Consumer
• Leverage GE brand/competencies/synergy
GECAS
Energy Core
Other • Leasing and asset management intensive
platforms advantaged vs. banks
Assets $637B $400-450 • Direct origination to mid-market
ROI 1.3% 1.5-2% • Core underwriting skills
• Fewer FinCos
• Bank consolidation … historically positive

170

85
2009 Summary
1 Environment much tougher – we think GECC is prepared
• Strong liquidity/limited refinancing risk today

2 Thoughtful view of stressed losses … working aggressively

3 Revised 2009 outlook – higher losses, but more cost-out

4 Intense focus on risk management, work-out and restructuring

• Rigorous asset management/manage risk

5 GE Capital business model robust as the economy recovers

171

Closing

172

86
How to think about GE Capital risk
1 Even under Fed adverse stress tests, GE Capital is approximately breakeven in
2009 and we should not need to inject additional capital
Cases
Op plan Fed base Fed adverse
2 Losses and impairments $10 $14 $18
Net income $5 $2 $0
Fixed charge coverage a) ~1.52 ~1.32 ~1.19
Tangible equity ratio 6.9% 6.4% 6.1%

Framework can accommodate ~$40B of losses over 3 years without requiring

additional capital
Potential losses & impairments
2009/ Cumulative
2008 2010 3 years
Base plan $10B ~$30B ~$40B

(a- includes ~$B equity infusion

173

Sources of contingent capital

We have $34B of tangible equity after $9.5B infusion

Other potential sources

• Announced dividend cut provides additional capital
• Ability to control new originations/GECC asset sales
• Ability to monetize assets or take responsibility
for GECS liabilities

Current outlook does not require external capital

174

87
Company update
Dec. 16 1Q Comments

Energy Infrastructure ++ 9 • Global growth

Tech. Infrastructure + 9 • Aviation on track

• Healthcare pressured

NBCU 0/‒ — • Advertising market weak

• Tough comps

Capital Finance $5 Profitable • Strong cost reductions

• Tax credits

Corporate Flat 9 • C&I/pension pressure

• Costs lower

175

Key messages
9 Running GE to be safe and secure over the long term
‒ Liquidity position is extremely strong
‒ Completed 93% of our 2009 planned long term funding
9 Have sufficient capital and alternatives to weather adverse
economic conditions
9 Running GE with intensity
‒ Resizing our cost footprint in a meaningful way
‒ Management team is focused on delivering cash
‒ Continuing to invest/position company for long term growth
9 We expect GE Capital will be profitable in 1Q’09 and 2009
9 We are committed to GE Capital

GE will come out of this cycle a stronger, more

focused and competitively advantaged company

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88
GECC debt/equity ratio
($ in billions)
4Q’08 1Q’09E
As reported (4Q’08/estimated 1Q’09)

Debt $510.4 ~$496

Equity 58.2 ~65

Debt/equity 8.8 ~7.7

Adjustments
Add: hybrids to equity 7.7 ~8
Subtract: hybrids from debt (7.7) ~(8)
Subtract: cash from debt (36.4) ~(39)

Adjusted book debt 466.3 ~449

Adjusted equity 65.9 ~73
Adjusted debt/equity 7.1 ~6.1

CFPA1422 Investor Meeting_Tuesday, March 17, 2009 1

GECC TCE/TA ratio
($ in billions)
4Q’08
As reported
Equity $58.2
Goodwill and other intangible assets (28.4)
29.8

Total assets 637.4

Goodwill and other intangible assets (28.4)
609.0
TCE/TA ratio 4.9%
Adjustments
Add: Capital contribution to TCE and TA 8.8
Subtract: CTA/0CI impact from TCE (2.9)
Add: CTA/OCI impact to TA 10.0

Adjusted TCE 35.7

Adjusted TA 607.8
Adjusted TCE/TA ratio 5.9%

CFPA1422 Investor Meeting_Tuesday, March 17, 2009 2