1

GE Capital

Investor Meeting

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.”

March 19, 2009

2

Key messages

� 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

� Have sufficient capital and alternatives to weather adverse economic conditions

� 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

� We expect GE Capital will be profitable in 1Q’09 and 2009

� We are committed to GE Capital

GE will come out of this cycle a stronger, more focused and competitively advantaged company

2

3

GE: safe & secure

Infused equity intoGE Capital

Strengthened liquidity~$45B $42B

Completedto date

TY’09E

Reduced dividend … ~$9B in annualized savings

82¢

40¢~4%

Dividends/share Yield @ today’s price

20102009 2009

7:1~6:1

1Q’09E4Q’08

GECC leverage-a)

’09 long term funding needs

4.9%~6.0%

1Q’09E4Q’08

GECC tangible common equity/tangible assets

$48B

1Q’09E4Q’08

GE cash

(a- net of cash and equivalents and withclassification of hybrid debt as equity

22

33

11

~$41B

4

Ratings update

� 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

� 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 excellentbusiness 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

3

5

Support• GE support to ensure GECC 1.1x fixed-charge

coverage ratio

• GE TLGP FDIC backstop

• Infused $15B & reduced dividend from GECS

• History of capital infusion or dividendreductions when necessary

Operating businesses(Capital Finance)

GE Capital structure

100%

100%

AA+/Aaa

General Electric Capital

Corporation

Primary GE Issuer/GuarantorPrimary GE Issuer/Guarantor

General Electric

Company

General Electric

Capital Services, Inc.

Owns all ofGE’s financing

assets

Real Estate GECAS

CommercialLending &Leasing

EnergyFinancialServices

AA+/Aaa 100%

ConsumerFinancing

6

GE Capitaloverview

4

7

2009 outlookEnvironment

• 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

8

GE Capital business model

� GE Capital has performed for decades� Will reposition for long term success

Financial Services value chain

“Raw material”(capital)

GE Advantage:

Competitive cost

“Origination”

GE Advantage:

� Global position

� Brand

� Domain expertise

� Low cost

� Risk

� Talent

� Treasury

� Asset Mgmt.

� Tax

“Factory”

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

GE Advantage:

Pre-crisis competitive position:

5

9

GE Capital portfolioBusiness

CommercialLoans & Leases $230B $1.7B

GECC2008 Financials

Assets Net income

• Entered in the 60’s• ~100% secured loans and leases• Support mid-market customers

• Entered in the 70’s• Secured loans against diversified properties• Own/operate high quality properties

• Entered in the 30’s• Store cards and sales finance for retailers• Broad spread of risk

• Entered in the 60’s• GE domain• Broad product set with full life cycle management

• Entered in the 80’s• GE domain• Essential assets; secure cash flows

Domain + expertise

Businesses we know … decades of performance

Real Estate 85 1.2- Debt- Equity

Consumer 183 3.7- U.S. PLCC- Global

Aviation Services 49 1.2

Energy Fin. Services 22 0.8

10

GE Capital: our approachWhat we do

What we don’t 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

�Did not originate CDOs, SIVs, etc.

�Did not sell credit default insurance

�Do not trade securities … Minimal MTM in up or down cycles

�Do not originate mezzanine or high yield debt/bonds

6

11

GE Capital has a strong franchise

• $86B of new financings to global companies, infrastructure projects and municipalities

• $177B credit extended to global consumers

• Have continued to support virtually all major U.S. airlines and auto companies with financings as they work through cyclical issues

• Leading DIP/Bankruptcy lender for restructuring U.S. companies

• Global leader in mid-market commercial lending

• Provided $6B financing to support global energy projects

Estimated U.S. market position

• Middle Market Commercial Lending #1

• Equipment Lending/Leasing #1

• Middle Market Corporate Finance #1

• Aircraft Financing #1

• Healthcare Financing #1

• Energy Financing & Project Financing #1

• Fleet Leasing #1

• Franchise Finance #1

• Commercial Real Estate Lending Top 3

• Dealer Financing #1

• Private Label Credit Cards #1

Core is strong + competitively advantaged

One of the few liquidity sources in 2008

12

Portfolio strategyForwardreturn

dynamicsCore

competenciesCompetitiveoutlook

Ending netinvestment

’09 outlook ($B)

CoreCore mid-marketlending + leasing+ verticals

2-5% ROI• Underwriting +++• Direct origination - Likely fewer FinCo’s• Asset mgmt. intensive - Fewer captives• Re-marketing - Bigger banks• Deep domain

Growlong term

GE BankingEuropean &Emerging Marketbanks & JV’s

2-4% ROI

• Enhance value via ++product development - Strong local franchises

• Grow deposit base - Lots of options• Operating synergies

Enhancevalue

RestructureVarious Consumer& Commercial platforms

<2% ROI • Origination —• Funding advantage - High leverage

- Tend to competew/ banks

Restructure/run-off

$356

$64

$80

7

13

Primary questions regarding GE Capital

� Commercial Real Estate– What is in our portfolio and what is the corresponding risk?

� What is the risk in U.K. mortgage?

� What is the risk in Eastern Europe?

� What is the risk in U.S. Consumer?

� Losses/Impairments/Reserves– Are our reserves adequate and how do they compare to other banks?

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

� Other investment securities, associated companies, goodwill

We will cover all of these questions today

14

Stress testing approach

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

Bottoms up – asset by asset, business by business

Large commercial exposures over $300MM stressed individually

8

15

Summary of stress testing

2009outlook

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

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%)

Est. Fedbase

Est. Fedadverse

2009 macro guidance

($ in billions)

Stress assumptions utilize Fed guidance and 3rd party forecasts

Capital Finance

16

Key messages

� GE Capital funding is 93% complete and we have ~$60B capacity under Federal programs

� GE Capital is well capitalized and compares favorably to banks

� GE Capital is a conservative lender … losses should be lower than banks

� Real Estate equity valuation estimates are comparable to other real estate investors

� U.S. Consumer credit losses comparable to similar U.S. bank portfolio performance

� Adverse stress case losses of global mortgage should be manageable

� CEE Banks should be profitable even in an adverse stress scenario

� We are operating GE Capital with intensity … Collections >originations, lower cost, aggressive risk management

� We expect GE Capital will be profitable in 1Q’09 and 2009

� Have sufficient capital alternatives to weather adverse economic conditions

� GE Capital has a profitable vision for the future

9

17

AgendaFunding & Liquidity

Portfolio & Risk Management

Business Reviews & Stress Testing

– Real Estate

– Commercial Lending & Leasing

– GECAS

– U.S. Consumer

– Mortgage

– European Banks

Break

Operations Update

Financial Update

GE Capital Summary & Outlook

Closing

Q&A

Kathy Cassidy – GE Treasurer

Jim Colica – GECC Chief Risk Officer

Ron Pressman, Stewart Koenigsberg & Jayne Day

Dan Henson & William Brasser

Henry Hubschman & Anne Kennelly-Kraky

Mark Begor & Ray Duggins

Mark Begor & Ray Duggins

Dmitri Stockton & Denis Hall

Lunch

Bill Cary – GECC COO

Jeff Bornstein – GECC CFO

Mike Neal – GE Vice Chairman & GECC CEO

Keith Sherin – GE Vice Chairman & CFO

18

Funding/Liquidity

10

19

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 … TCE/TA ratio at top-end of banks

• Strong cash and liquidity position

20

4Q'08 4Q'09E 4Q'10E

GECS funding($ in billions)

Bank lines $60 ~$50 ~$50

CP coverage 83% 100%+ 100%+

Cash & equiv. $37 ~$30+ ~$30+

LT debt<1 yr. $69 ~$67 ~$60-$65

Comm’l paper

Deposits/CD’s/ Other

LT debt

FIN 46

~$479

~$485~6

50

81

348

$509

$5156

72

55

382

~$445

~$450~5

40-50

85-90

320-330

11

21

GECS ’09/’10 Funding plan

Beginning cash balance

Sources

LT debt issuances

Alternate funding

Business originations/ collections mgmt.

Capital infusion from GE

Total sources

Uses

LT debt maturities

CP reduction

Total uses

Ending cash balance

’09

37

32-a)

26

25

9

92

(69)

(22)

(91)

~38

’10

~38

35-40

4-9

20-35

–

60-80

(67)

0-(10)

(67)-(77)

~31-41

Comments

93% of ’09 funding complete … lower ’10 planned issuances … considering early funding of ’10

CD's, Intl. bank deposits & other programs

$205B collections/$180B originations in ’09

Back-up liquidity

Cash / liquid assets

CPFF – unused capacity

BOE/ECB/BOC facilities

Bank lines

(a. Ex-$13B funded in ’08

Strategy : assets, alternate funding, … maintain strong liquidity

($ in billions)

22

Government programs

• Capacity of $98B (incl. GE) … pricing @ slight penalty to market

• GECC/GECS outstandings matured in February … none outstanding today

• Enables GE to support investor liquidity needs & manage duration … serves as liquidity backstop

• Newly announced Fed/Treasury facility … covers AAA ABS for specified assets …currently auto & credit card … may be extended to equipment & CMBS

• $10B+ of PLCC/CDF maturing securitization debt likely eligible

• Potential for increased liquidity for real estate and equipment … may reduce cost of securitization funding … continuing to evaluate

• GECC capacity of $126B … important for LT debt market & CP market access …program now extended through October 31, 2009

• $37B LT debt issued under the program … $3B remaining for ’09

• Manage ~$25-$35B CP outstandings under TLGP

• ~$50-$60B capacity remaining … option to fund some ’10 maturities in ’09

Programs GE impact

Commercial paper funding facility

(CPFF)

Temporary liquidity guarantee program

(TLGP)

Term Asset-backed securities

loan facility

(TALF)

• New facility in development … initial focus on marketable securities & other MTM assets … could expand to leveraged loans, real estate, equipment, etc.

• Improved liquidity in these asset classes to help overall market

Public Private investment funds

(PPIF)

12

23

2009 alternate funding($ in billions)

CD’s : Distributed through multiple firms to support asset growth in US banks

• Industrial Loan Corporation deposits $17B–Adding 3 complete business platforms to ILC …

direct origination a)

–Originating CD’s to match bank assets profile(~$7B > 1 yr. maturity as of 4Q’08)

• Federal Savings Bank deposits $2B–Direct origination of sales finance assets

International deposits $6B– Drive market share in emerging markets – Tap large/developed markets

French Gov’t program: $1B ’09 target ($0.4B YTD)

Covered bonds program: 1st issuance by Jul ’09

Exploring other asset based funding options

Cost of funding attractive vs. LT debt

Transition banks to deposit funding

4Q'07 4Q'08 4Q'09E

International

Other

11

$55

$30

18

19

20

~$81

U.S. FederalSavings Bank

U.S. Industrial LoanCorporation

27

17

1711

15

10

1

a) Subject to regulatory approval

24

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

Remaining Term as of 3/11/09

• ~80% lines from Aaa/Aa banks

• Lines from 64 banks globally

• Syndicated: $22.9B; Bilateral: $35.3B

• ~$12B also available to GE parent

Comments

Liquidity in great shape … on track to meet CP coverage targetswith $50B+ bank lines and $30B+ cash

• Strong base of $37B lines >1 year

• $19.8B up for renewal in Mar-Dec ’09 … phased reduction planned as outstanding CP comes down

• Expect $10B renewals by June with remaining $3-5B during 2H’09

• Support levels not materially impacted by bank consolidation

• No MAC clauses

• No covenants or rating triggers

• Drawn pricing at capped spread over Libor

$30B> 3 years but less than 4

$22Bless than 1 year 94% w/ term out

$4B

> 4 years

$3B> 1 yr but less

than 3

($ in billions)

13

25

Capital ratios

� GE infused $5.5B cash into GECS 4Q … plan to infuse ~$9.5B into GECS 1Q’09

� Leverage commitments ahead of plan … ~6:1 by 1Q’09

� TCE/TA ratio at the top end of the banks even if banks convert their TARP preferred equity into common equity

GE Capital Corp. leverage a) GE Capital Corp. TCE/TA ratio b)

4Q’08

7:1

~6:1

1Q’09ETangible bookLeverage c) 17X 14X

(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

U.S. Large BHC avg.

4.9%

~6%

1Q’09E4Q’08

1.9% d)

26

Portfolio overview

14

27

Risk management

Disciplined approach to managing risk

� Diversified portfolio – broad spread of risk, managed exposure limits

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

– Collaterals GECC knows well – 2 decades of experience

� Conservative asset residuals – 520 experienced asset managers – market intelligence & redeployment capabilities

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

– Senior risk officers have over 25 years experience

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

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

28

Brazil

Czech Republic

Korea

Others

Thailand

China

Russia

Mexico

Turkey

Poland

Hungary

India

GECC PortfolioTotal assets ($637B) Geography

Developing Markets $70B

U.S.48%

Canada

Europe

Latin America

Asia Pacific

Other

3%

27%

2%

11%

9%

~70% of financing activities - Commercial

~11% Developing Markets

Commercial Lending & Leasing

$230B

Other$68B

EFS$22B

GECAS$49B

36%

3%

8%

29%

11%

Real Estate$85B

13%

Consumer$183B

17%

18%

8%

5%

5%

4%4%

6%

4%

10%

7%

12%

15

29

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

Sales Finance

14%

6%

14%34%

11%

6%

9%

25%

20%

17%

13%

16%

2%

7%North America

Personal Loan

Small andMedium

Enterprises

CardsMortgage

Auto

Other Asia

Latin America

ANZ

UK

Western Europe

Eastern Europe

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

6%

JVs

30

Commercial Portfolio Diversification

Others

Hotels Restaurants &

Leisure

Construction

Health Care

Energy

Automotive

Business Services

Diversified Finance

Real Estate

Commercial Airlines

Machinery

& Equipment

Industry sectors ($386B)

45% less than 6% industry weighting -

51 industries

13%

24%

2%

6%

32%

2%

6%

4%

6%

3%

2%

A/c Rec and Inv

Cash Flow

Comm. Aircraft

Fleet Vehicles

Franchise

Healthcare Equipment

FF&E and Other Equip

Others

Comm. Real

Estate

Corporate Jets

Transportation

Equipment

Energy

Generation/Distribution

Dealer Inventories

Collateral type ($386B)

Diversified portfolio in long-standing GECC collateral types

13%

24%

9%

4%

12%

4% 5%

10%

7%

3%

3%

4%2%

16

31

Commercial Customer Concentrations

Over $1B, 15 accounts:

Airlines, Class 1 Railroads, Electric Utilities, Aircraft Manufacturing, Real Estate

$500MM-$1B, 27 accounts:

Airlines, Automotive, Healthcare, Power Generating Projects, Oil & Gas Refining, Cable, Broadcast Media

$300MM-$500MM, 44 accounts:

Automotive, Airlines, Electric Utilities, Broadcast Media, Healthcare, Technology Equipment

$100MM-200MM

Over $1B

Under $50MM

$50MM-$100MM

$500MM-$1B

$200MM-300MM

$300MM-500MM

61% 11%

8%

4%

5%

5%6%

72% of single risk exposures <$100MM

Larger exposures secured primarily by essential operating assets

($386B)

32

Key portfolio risks – 12/2 view(Pre-tax losses - $ in millions)December 2, 2008 outlook

2009 Assumptions

Estimated’09 financial

impact

Downside case

U.S. Consumer 7% • 8.5% unemployment ~$4.2B ~$5.0B 9%unemployment

U.K. Mortgage 4% • HPI (17%) 2008• HPI (15%) 2009

Real Estate 14% • Cap rates 50-100 bps. higher $250 $400- Debt • Cap rates 50-100 bps. higher,- Equity long-term hold

GECAS 7% • Global traffic growth down ~2% 2009

$240 $500

~$300 ~$550

%Assets AssumptionsImpact

+200 bps. highest historical cap rate by

asset type

• (3%) traffic decline (9/11)

Economic environment more challenging

$600 $800 (20%) HPI

March ’09outlookvs. Dec. 2

=

=

17

33

Stress testing approach

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

Bottoms up – asset by asset, business by business

Large commercial exposures over $300MM stressed individually

34

Consumer portfolio stress testing

Key Drivers:

Macro • Unemployment

• Home equity access

Portfolio • Credit quality

• Credit lines

• Loss sharing

• Recovery rates

Key Drivers:

Macro • Home prices

• Unemployment

• Refinancing ability

Portfolio • LTV

• Mortgage insurance

• Borrower credit quality

• FX movements (Central Europe)

U.S. Non-U.S. Mortgage

Key Assumptions:

U.K. • 15% HPI decline in ’09 (34%’08-’09)

• 9% unemployment

• Additional loss on sale 20-25%

Central Europe • 15-30% further devaluation from today’s FX rate based on country

• Unemployment up to 13% basedon market

Key Assumptions:

GDP (2.0%) (3.3%)

U/E avg. 8.4% 8.9%

U/E peak 9.3% 10.1%

Debt sale recovery rate:

PLCC 10% to 7.2% 25% to ~6%

Sales Finance 16% to ~6.6% 25% to ~6%

Fed Base Fed Stress

Adverse

No benefits assumed from U.S. Stimulus Programs

18

35

Commercial portfolio stress testing

Key Drivers:

Macro • GDP, Unemployment

• Liquidity

Portfolio • Senior diversified positions

• Borrower leverage

• Sector diversification

• Asset value of collateral

Key Drivers:

Macro • GDP, Unemployment

• Liquidity

Portfolio • LTV

• Property cash flow

• Borrower leverage

• Cap rates, liquidity

Commercial Loans, Leases Real Estate

Key Assumptions:

GDP (2.0%) (3.3%)

U/E avg. 8.4% 8.9%

Cap rates

Output

Key Assumptions:

GDP (2.0%) (3.3%)

U/E avg. 8.4% 8.9%

U/E peak 9.3% 10.1%

Fed Base Fed Stress

Defaults Increased ~100% from 2008 levels to ~6%

Severity Increased GECC historical severity by 50% on average to

~20-35%

Increased ~70% from 2008 levels to ~5%

Increased GECC historical severity by 35% on average to

~15-30%

Fed Base Fed Stress

Revert to historical medianof last 18 years

PPR model forecasting greater declines in office property cash flows

No benefits assumed from U.S. Stimulus Programs

36

Portfolio overview

Asset type

Consumer 30% 64%

Commercial 70% 36%

U.S. 41% 86%

U.S. consumer 6% 58%

- Cards 3% 9%

- Mortgage 0% 40%

- Auto 0% 1%

- Student loan 0% 1%

- Sales Finance/other 4% 7%

* Weighted average of top 4 U.S. money center banks

• Less Consumer

• No U.S. mortgage, auto or student loans

• More global

• Minimal real estate construction exposure

• 46% of portfolio is cross-collateralized with other 1st mortgages

• Operate each owned property

• Underwrite to hold on book

• Minimal junior debts, small hold positions

• Global redeployment, remarketing capabilities

• Deep domain expertise in Commercial Air & Power Generation

• PLCC has smaller average balance, lower loss severity, retailer loss sharing

GE position vs. banks

GE mix different than banks

% of total portfolio

(as of 4Q’08)

GE Banks*

19

37

Business reviews

38

Real Estate

20

39

Finance purchase of real estate by 3rd parties in multiple asset classes, individually and in cross-collateralized portfolios

Own, manage and add value to real estate as single assets and portfolios across office, apartment, warehouse, and retail asset classes around the world

Provide financing to owner-occupied commercial real estate for small to middle market businesses

GE Real Estate … what we do

11

22

33

40

How we manage riskRigorous process around market, customers and asset evaluations

Sophisticated tools for easier market analysis and deal assessment • Market data

• Customer relationship management

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

• Economic/market sensitivities

• Deal review/approval system

21

41

Rigorous portfolio valuation processDetailed 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• Environmental survey

• Structural survey (earthquake as needed)

Market/site analysis• Detailed inspection of property and surrounding neighborhood

• On-site management and tenant interviews

• 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

Process culminatesin roundtable asset valuation review …all assumptions challenged

42

Key market risks in 2009/2010

Challenging environment

Economic fundamentals– Industry transaction volume in 4Q’08 down 80% from 4Q’07– Rental rates , absorption , vacancies , delinquencies ,

demand , supply constant– Virtually no new liquidity available … TALF should help … 2nd half

may be better

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

– Banks deleveraging– Limited new refinancing capacity in the system

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

11

22

33

* Source: Property & Portfolio Research (PPR)

22

43

Primary real estate productsDebt portfolio: $48B Equity portfolio: $33B

• On balance sheet lending

• Senior secured, first mortgage

• Not a construction lender

• 35 year track record

• Owner-occupied: mid-market credit/single tenant

• Well diversified, A-/B+ quality, avg. inv. $10MM, minimal construction risk

• Primarily wholly-owned with no 3rd party debt - $29B, joint venture investments – $4B

• Hold at historical cost less depreciation … $1.5B annual NOI, $1.1B annual depreciation

� Debt portfolio primarily senior secured first mortgages, no “hung” inventory � Equity portfolio is good quality, primarily 100% owned operating real estate� Under Fed Reserve adverse stress test, potential total portfolio losses are manageable

Office

49%

Retail 9%

Other RE

6%Warehouse

12%

Apartment

14%

Parking 3%

Mixed 6%

Hotel 1%

Office

23.5%

Mixed

3%

Owner-occupied

19%

Apartment

19%

Warehouse

9%

Other RE

6%

Construction

1.5%

Retail

8%

Hotel

11%

44

Debt

23

45

$62MM

GE Real Estate position in debt markets

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

CMBSunrated

CMBSrated

Equity

Mezzanine

Seniorsecured/

1stmortgage

Global RE debt market$6 trillion*

* Source: PPR

97%senior

secured/1st mortgage

3% ���� $1.4B

GE $48B

46% cross collateralized

GE Real EstateCMBS

Subordinated

46

Singles

32%

Crossed

portfolios

46%

Sub-debt

3%

Collateral type dispersion

Debt portfolio

Debt structure

Total debtexposure:$48B

Geographical profile

• Crossed portfolios (46%): a single loan secured by multiple properties in multiple locations. Benefit: loss from a single property can be offset by excess cash flow and/or value from other assets in the portfolio

• Hotel exposure: 35% acquired at a discount post credit crunch; 54% cross-collateralized; largest loan exposure at $1.1B was 33% LTC at U/W, cash flow up 7% since U/W and current DSC @ 5.52X

• $0.7B construction portfolio: 65% acquired at a discount

• Japan/UK/Germany: portfolios acquired at a discount

Comments

$1.4B

Owner-occupied19%

CMBS bonds$62MM

First mortgage senior secured 97%

a)

Office

23.5%

Mixed

3%

Owner-

occupied

19%

Apartment

19%

Warehouse

9%

Other RE

6%

Construction

1.5%

Retail

8%

Hotel

11%

US -CA, 8%

US-GA 3%

US-FL, 4%

US-TX, 5%

US-Oth, 23%

US/Canada-

Owner occupied

19%

Canada 8%

Mexico 8%

Japan 7%

UK 7%

Germany 4%Other 4%

24

47

Commercial real estate at GE

• Senior secured lending in markets we understand

• Value add properties in good locations

• Mid range office

• Affordable middle class apartments

- Avoid luxury

• Retail focus grocery/hyper market anchored centers

• Warehouse

- Crossed parks w/multi tenant, high CoC

• Opportunistic portfolio acquisitions at discounts

What we do

Other Commercial

Construction, Land and Developer Debt

$112.4 $142.2 $68.2 $48.0

Bank 1 Bank 2 Bank 3 GE

Commercial RE debt as of Dec ’08

Total O/S ($B)

1.5%

What we typically avoid

• Construction lending

• Land loans

• Single family residential development

• 2nd mortgages

• Mezzanine high yield

• CMBS hold positions – A or B pieces

• Syndication book, “hung” inventory

• Malls

• Trophy buildings

• Brownfield sites

• Resorts

• Exited condo conversion early

• BRICs28%

15%

64%72%

85%98%

36%

65% bought < parand 8% crossed w/stabilized properties

1.5%

48

0%

3%

5%

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

6.0 6.4 7.89.4

Debt portfolio performance

Delinquency/defaults

Vintage profile*

$7.0B $6.8B

$11.3B

$14.4B

N. America

Asia

Europe2.4

2.6

55% of ’08 is opportunistic discounted debt purchase

<2006 2006 2007 2008

* Excludes owner-occupied

(% of Total O/S) 5.4%*

Maturity profile*$B

$9.2B $9.2B

GE1.2%/$0.6B

Commercial banks (4Q’08)

GECommercial Banks

$6.1B

$14.9B

0

5

10

15

'09 '10 '11 Thereafter

2.90.6

* Source: FFIEC

25

49

•Primary driver is product mix

•Construction and development loans

- 32% of banks’ commercial real estate portfolio vs. 1.5% at GE … 65% acquired at opportunistic discounts

- We also generally avoid other higher risk asset classes/structures – 2nd mortgages, mezzanine, malls, resorts, condo conversions, etc.

•Underwriting rigor/standards/valuations

- Independent/in-house risk underwriting

- Our underwritten valuations are generally 5-10% below appraisal values

•Asset management capabilities

- Extensive local network … unparalleled

- Every loan matters

Why our delinquencies and losses are lower than competitors

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

Construction& development (C&D)

GE

C&D % portfolio 32% 1.5%

C&D charge-offs as% of total charge-offs 83% 0

C&D delinquencies 11.4% 3.8%

C&D delinquencies% of total delinquencies 66% 4.4%

Banks*

Construction and development loans drive bank losses &

delinquencies

*Source: FFIEC

50

Maintaining relatively strong performance

Portfolio metrics

<75%$20.8B

>90%$4.3B

75-90%$12.8B

DSC 2.0x

LTV 74%

Loan to value (LTV)

Debt service coverage (DSC)

Comments

92% paying current

$2.1B mitigated- Supported by letters of credit, cash

reserves, guarantees covering at least 12 months debt service payments

$2.7B not mitigated- $1.2B <80% LTV- Fully reserved if not deemed recoverable

>1.2$30.3B

<1.0$4.8B

1.0-1.2$4.4B

Excludes owner-occupied, purchased non-performing loans, tax credits

DebtU.S.: 100 markets

LTVEur: 32 markets

<75% 75-90% >90%

High $5.0 $3.8 $2.4

Medium $3.1 $2.6 $0.9

Low $0.2 $0.5 -

Mexico $3.6 - -

Japan $3.1 $0.2 -

Canada $1.5 $1.2 $0.1

Other Mkts. $1.7 $2.2 $0.5

Hotel/Other RE U.S.

Total

$2.6 $2.3 $0.4Not Rated

$20.8 $12.8 $4.3

• Top 10 markets account for 33% of total• 15% matures in ’09

Values:

Current re-underwriting, historically 5-10% less than appraisals

Excludes owner-occupied

26

51

Debt maturities risk

$6.1B debt maturing in ’09

>85%LTV

<85%LTV

$1.0B

$1.3B

$1.9B $1.9B

�Maturing 2009

�<85% LTV loans likely to meet contractual extension requirements … expect all to extend

�Potential refinance, low LTV, amortization

�>85% LTV loans pose refinancing risk in current environment

•$0.6B expected to pay-off

•$0.5B expected to pay-down•$0.5B expected foreclosures (90%+ of loans with specific reserves or purchase discount)

$6.1B

2.2B

1.6B

2.3B

’09 maturity components

0.7B

1.2B1.0B

1.6B

0.3B

0.9B

0.1B

0.3B

1Q 2Q 3Q 4Q

52

0%

2%

4%

1988 1992 1996 2000 2004 2008

Owner-occupied mid-market lendingRatings by maturityDeal size segmentation Geographic concentration

by NEA

88% of deals NEA <$5MM57% of NEA <$5MM

Largest concentration = CA 14%Only 4 states >5% concentration

Historical delinquency& losses (1988-2008)

Total NEA $9.7B

14%

6%

6%

5%

4%

5%

40%

NJ

2%

OH

2%

2% 3%GA

3%2% IL

3%PA

3% NC

Remaining

CA

TX

FL

NY

ONTARIO

QUEBEC

AZWA

Stress test comments

EAD ($B) PD LGD

Loss/yr ($MM)

4Q’08 outlook 10.5 3.9% 15% 63Stress case 10.5 5.1% 20% 107

AAA-A BBB-B CCC-C D

2010

2011& after

2009#: 7$: 9%: 0.1

#: 7$: 59%: 0.6

#: 203$: 674%: 6.6

#: 82$: 198%: 2.0

#: 78$: 132%: 1.5

#: 2,618$: 8,254%: 85.1

#: 4$: 1%: 0

#: 3$: 5%: 0.1

#: 132$: 339%: 3.5

#: 8$: 11%: 0.1

#: 2$: 5%: 0.1

#: 29$: 46%: 0.5

$MM

Deal Size/ <$1MM $1-$3MM $3-$5MM $5-$10MM $10-$15MM $15-$20MM >$20MM

Total NEA$0.9B $2.7B $1.9B $2.3B $1.1B $0.4B $0.4B

• 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• 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

Delinquency % Losses %

1.5%

# of deals

142389

344

500

1,492

1,658

0

200

400

600

800

1000

1200

1400

1600

1800

Credit underwriting with property collateral

27

53

156128

9997

Credit costs – total debt portfolioOur portfolio has outperformed

the industry over time’05 ’06 ’07 ‘08

Credit costs(provisions) $31 ($5) $24 $135

Reserve % 1.31% 0.74% 0.52% 0.64%Reserve $ 189 155 168 301Debt servicecoverage 1.4x 1.6x 1.5x 2.0x

• Reserve % driven by recovery of specific reserves from loan payoffs and improvements in debt service coverage

Reserves

(1) Specific reserve process - FAS 114

• Quarterly surveillance process based on 7 triggers (DSC<1x, LTV>100%, “Risk/Watch” accounts, delinquent or non-earning, cost recovery, past maturity>90 days, loans with specific reserves)

• Specific reserves posted when loans deemed not fully recoverable, generally when LTV > 100%

(2) General reserves process - FAS 5

• Based upon robust analysis utilizing PPR “Compass” model technology - real estate market data and GE portfolio statistics

($ in millions)

’05 ’06 ’07 ‘08

PPR forecastcredit costs*

Actual GE REnet charge offs

* Forecast at end of preceding year

1117

33

69

Better experience

Losses/reserves

• ’05-’08 period generally benign, however industry model losses > GE RE losses

• Over longer periods GE RE portfolio outperformed due to:

- Product mix (very low construction exposure)

- Underwriting (valuations, rigor)

- Asset management (extensive network)

54

Fed Baseline

Case

Median long term historical cap rate +adders for asset quality

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

• 2 year US office market rents flat

Median long term historical cap rate +adders for asset quality

Median long term historical cap rate +adders for asset quality

Cap rate assumptionNOI assumption

FedAdverse

Case

Property valuation stress methodology

4Q’08Outlook*

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

Negative rent growth and occupancy per PPR/PMA** utilizing Fed more adverse assumptions for GDP / unemployment

• 2 year US office market rents ���� 15% • Impact on office equity portfolios: NOI ���� 16% over 2 years

Negative rent growth and occupancy per PPR/PMA** utilizing Fed baseline assumptions for GDP / unemployment

• 2 year US office market rents ���� 13% • Impact on office equity portfolios NOI ���� 14% over 2 years

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

28

55

Real Estate loan loss stress cases

$1.0B

10%

27%

(2.7)

3.7

(9.6)

13.3

(26.2)

$39.5B*

$0.9B

8%

27%

(2.3)

3.2

(7.8)

11.0

(28.5)

$39.5B*

= Potential loss

Implied default rate

Implied LGD

Minus collateral

value

= > 100% LTV and<1.0x DSC

Minus >1.0x DSC

= Net >100% LTV

Minus 0 - 100% LTV

Total debt NEA

Fed baseline case Fed adverseComments

• Current delinquency of $0.4B* on $39.5B*

• 4Q’08 outlook of $0.3B credit losses

• Impact of Fed base and adverse scenarios determined as follows:

Apply PPR’s adjusted rent and occupancy assumptions, by market and collateral type to the underlying individual property value

• Stressed property value compared with loan principal amount to determine those above 100% LTV

• Stressed property cash flows compared with debt service required by each loan to determine those with <1.0x DSC

* Excludes owner-occupied lending

($ in billions, pretax)

56

Equity

29

57

48% originated before 2007

Collateral profile

Equity portfolio

Predominantly office (Japan, U.S., France)Apts. (U.S., Japan); Warehouse (Mexico, U.S.)

Equity structure

Total equityexposure:$33B

Geographical profile

U.S. – Top 3 cities (5% of total) – San Diego, Seattle, AustinJapan – Tokyo 9%/France – Paris 8%

Wholly-owned

JV

Other

Office

49%Hotel

1%

Mixed

6%Parking

3% Apartment

14%

Warehouse

12%

Other RE

6%

Retail

9%

12%

86%

2%

USA 29%

UK 6%

France 12%

Japan 19%

Canada 6%

Germany 6%

Spain 4%

Australia 4%

GE equity by vintage

1.32.6

8.3

1.4

3.7

2.6

2.8

3.8

3.9

1.2

$5.5

$10.1

$2.6

<2006 2006 2007 2008

0.41.0 N. America

Asia

Europe

$14.8

58

Portfolio characteristicsPortfolio profileAsset size

> $100MM

$20-50MM

$50-100MM

<$20MM

$33B

10%

18%

29%

43%

Avg. investment $10MM

Development

assets 3%

In-place assets

97%

5.8

14.8

9.2

3.2

30

59

MM

M

L

L

Global hurdle process

L/T = 3-5 yrs

Debt Equity

S/T

L/T

Retail Warehouse

Office

Washington, DC

S/T = < 3 yrs

L/T

S/T

HurdlesLow

MediumHigh

L/T

S/T

Apartments

H

H

H

H

HH

H

H

L

L

Semi-annual top-down assessment of:

54 U.S. / 32 Europe markets

4 major collateral types

Multiple inputs used:

Macro Micro

GDP, demographics Local supply/demand

Industry trends Construction

Market liquidity Actual sales/leasing activity

High hurdle = rising vacancy, falling rents/values

Medium hurdle = specific issues to be addressed

Low hurdle = balanced supply/demand, stable to rising rents/values

PPR / PMA (3rd party/independent)Bottom-up review by local field network; debate through semi-annual meetingsConsistent methodology for analyzing marketsAlignment of market views between credit committee and fieldEstablishes new business parameters (no equity originations currently), and portfolio indicators

Market collateral pairs

Debt Equity

Debt Equity Debt Equity

S/T

L/T

M

Very rigorous origination guidelines

60

Equity portfolio: $33B

Debt portfolio: $48B

• Equity hurdles shifted higher in ‘05/’06 resulting in fewer deals

• Focused investments on countries/ locations with low per capita retail exposure and a growing middle class

• 60% anchored by hypermarkets: Tesco, Walmart, Metro, Tokyu Hands

– Reduced U.S. equity exposure early

•Avoided malls

• Very limited retail exposure to single tenants

•Grocery anchored and DIY retail (~20%) and strip centers, less affected by discretionary spending (e.g. fashion)

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

U.S. retail

$240

$167 $157

($ in millions)

Example: hurdle process limits retail exposure

$3B

* Excludes owner-occupied lending

Retail

9%

Retail

8%*

Japan

22%

Other

10%

C. Eur

28%

Italy

10%

UK

5%

Korea

7%

Mexico

5% Spain

6%

N.

America

7%

0

50

100

150

200

250

300

‘06 ‘07 ‘08

31

61

How we operate our assets (debt & equity)

Experiencedteam network

Intensive asset surveillance processes

Issue resolution/value creation techniques

• 97 field office network• Asset management team

averages 20+ years RE experience

• Shifted focus of global team from originations to asset management

• Captive loan servicing–Billing and collections– Insurance, property tax escrows–Real-time delinquency

monitoring

• Intensive property surveillance–Asset level business plans– Lease reviews and approvals– Financial statement audits–Collateral monitoring & security

• Portfolio reviews and metrics–Asset categorizations–Differentiated surveillance

levels based on asset performance

–Proprietary in-house global information system

–Portfolio performance metrics

• Change partners/operators– Improve property performance–Asset strategy changes

• Investment structure modifications

–Cash pay downs and lockboxes– Joint ventures/mergers– Seller financing

• Reposition real estate–Renovate/redevelop–Re-tenant

Highly experienced global team focused to maximize asset values

Extensive depth of resources, asset surveillance activities, and value creation techniques

Asset mgt

2,200

59%

30%

11%

Risk, finance,

etc.

Originations

1,500

56%

4%

40%

’07 ’09

• We buy assets … run them like a factory

• Many competitors have limited operating skills and lack local presence

GE vs. competitors

Focus:

Headcount

62

Office

Ind'l

Retail

Equity NOI revenues & expensesSourcing mindset for expenses

� Rebidding 3rd party PMC service contracts

� Leverage portfolio-wide buying power

� Review/revise service scopes

� Filing for property tax reassessments

� Sustainability & energy efficiency cost reductions and asset value enhancements

MM square feet

84.565.8

16.5

Property-level revenue actions

Vacancy % 16%

’09 rollover % 15%

� Intense focus on existing tenants … working plans months ahead of renewal process

� 22 million sq. ft. leased/rolled in 2008

� 81% of projected ’09 revenues from in place leases rolling in ’10+

� Leveraging our local teams, using best-in-class brokers to develop detailed leasing plans for vacant spaces

Property management

Property taxes

Utilities and other

~167MM SF (excl. apartment, hotel, parking)

22

11

33

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

32

63

GE vs. industry

• Maturities and periodic value swings make third party debt challenging

- Creates artificial timing in the asset life

• Third party debt generally less attractive than GE internal cost of funds

• Prefer to “control our destiny”

- Use external leverage only when economic

- Levered equity structured with skilled partners

• Leverage can magnify upside/downside

Third party external debt

Equity

65-90%

10-35%

Fund leveredequity

GERE$29B

GE3 big differences vs. opportunity funds

1) We don’t mark assets up

2) We depreciate assets each year

3) We generally don’t lever up

64

GE $100

Why is our unrealized loss “so small” compared with opportunity funds?

$97$94

Unrealizedgain/(loss)

Acquisition-’06 ’07 (peak) YE ’08

Depreciation3% Depreciation

3%Unleveredinvestment-book value(historical cost)

Asset value $100 $103 $85

- $6 ($9)

Investmentvalue 3%

Investmentvalue ����17%

Opportunity fund $33 $36$18

Acquisition-’06 ’07 (peak) YE ’08

Leveredinvestment-book value(mark to market)

3rd party debt (2:1)

$67 $67 $67

Investmentvalue 9%

Investmentvalue ����50%

Asset value $100 $103 $85

33

65

Levered equity positions of funds amplifies losses

Fund - levered equity*GE all-cash

$29B

100%equity

’08 vs. ’07value loss

15%

Investment loss

15%

33% equityValue loss

15%

Investment loss

45%

67%3rd party debt

For GE, value loss % on real estate = investment loss

For “Fund”, value loss %on real estate does NOT

= investment loss

* Assumes ~2:1 leverage

GE’s $4B unrealized loss @ year end ’08= (18%) vs. ’07, (54%) if levered 2:1

66

Equity unrealized losses summary

Rigorous valuations process• Valuations updated minimum 2 times per year

• Standard guidelines with 3rd party market assumptions

• Cap rates – long term median, range of 4.2% - 14.7%

• Local teams prepare valuations, global teams review and approve

• 3rd party data – PPR, PMA, RCA, Co-Star, Reis, etc.

• 353 dedicated asset managers review 3,200 assets across 150 markets each cycle – tremendous local knowledge

($ in billions, pretax)

Value change vs. YE’07

Wholly-owned (15%)

JV (42%)

Total (18%)

Value drop as % of GE book value

YE’07 – unrealized gain $3

Sales ($2)

Depreciation $1

Change in value ($6)

YE’08 – unrealized loss ($4)

Walk

JV’s($1.1)

Owned RE($2.9)

YE’08 unrealized loss - $4B

San Diego Office ($0.3) 8.3%

London Office (0.3) 7.4

Seattle Office (0.2) 8.1

Chicago Office (0.2) 8.0

Atlanta Apartment (0.2) 7.7

Irvine Office (0.2) 7.7

Tokyo Mixed use (0.1) 4.5

Dallas Apartment (0.1) 7.8

San Jose Office (0.1) 8.8

All Other Various (2.3)

Total ($4.0) 7.5%

UnrealizedTop losses: Collateral loss Cap rate

Rigorous valuation process supported by 3rd

party data from respected industry sources

34

67

’05 ’06 ’07 ‘08

Equity impairments

$30 $54$153

$294

($ in millions, pre tax)

• For our owned properties, per U.S. GAAP we MUST state at depreciated cost, subject to impairment testing(mark-to-market is NOT optional)

• 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 29%, Carr America 37%, Dundee 23%)

Quarterly impairment review process - FAS 144 review process

• Run undiscounted cash flow test quarterly on 100% of our portfolio

• Inputs are consistent with our rigorous asset valuation process utilizing 3rd party data sources and long term historical median cap rates

• Hold periods vary, up to 10 years

• If an asset fails the undiscounted cash flow test, it is impaired, fair valued based on current value and an impairment charge is recorded

Equity impairments

~($4.0)

$1.1

$2.1

$3.1

$4.1

’08UL

’09 ’10 ’11 ’12

• Real estate assets depreciated over estimated useful life (~3% annual)

• Cumulative depreciation balance eliminates current embedded loss over time and reduces risk of impairment

YE ’08 unrealized loss (‘UL’) mitigatedby cumulative depreciation

($ in billions)

68

Fed Baseline

Case

Median long term historical cap rate +adders for asset quality

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

• 2 year US office market rents flat

Median long term historical cap rate +adders for asset quality

Median long term historical cap rate +adders for asset quality

Cap rate assumptionNOI assumption

FedAdverse

Case

Property valuation stress methodology

4Q’08Outlook*

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

Negative rent growth and occupancy per PPR/PMA utilizing Fed more adverse assumptions for GDP / unemployment

• 2 year US office market rents ���� 15% • Impact on office equity portfolios: NOI ���� 16% over 2 years

Negative rent growth and occupancy per PPR/PMA utilizing Fed baseline assumptions for GDP / unemployment

• 2 year US office market rents ���� 13% • Impact on office equity portfolios NOI ���� 14% over 2 years

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

35

69

Rent growth assumptionsLondon office

Outlook Fed Base Fed Adverse

San Diego office

Atlanta apartment

Dallas warehouse

% %

% %

Source: PPR, PMA

-20

-15

-10

-5

0

5

10

15

20

2009 2010 2011 2012 2013

-15

-10

-5

0

5

10

15

2009 2010 2011 2012 2013-12

-10

-8

-6

-4

-2

0

2

4

6

8

2009 2010 2011 2012 2013

-6

-4

-2

0

2

4

6

8

2009 2010 2011 2012 2013

70

Los Angeles equity exampleHistorical perspectivePortfolio mix

Market fundamentalsApartmentOffice

Expected Cap Rates

8.90% 8.71%

7.83% 7.64%

5.67%

4.77%

4%

9%

Office Apartment

Max

Median

Min

$0.4B

Source: PPR

Office

73%

Warehouse

9%

Apartment

13%

Retail

5%

Rent Levels

$27

$32

$25

$23

Office Apartment

$1,780

$1,528

$1,247

$1,076

Max

In-Place

Median

Low

psf p/u

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

36

71

Fed base case stress analysis - equity value

$293 $252 $211 $183

$54$24

$26$23$38

$38$37

$35

$1$3

$1

$19

0

250

500

750

NEA Outlook Fed base Fed adverse

Retail

Warehouse

Apartment

Office

Los Angeles equityRent growth Equity $0.4B

•Portfolio comprised of office $293MM, apartment $54MM, warehouse $35MM, retail $19MM

Impairments $ 0 $10 $76

$400

$313$278

$245

($ in millions)

Office

-12%

-8%

-4%

0%

4%

8%

12%Outlook Fed base Fed adverse

Apartment

-6%

-4%

-2%

0%

2%

4%

6%

2009 2010 2011 2012 2013

2009 2010 2011 2012 2013

Source: PPR

Outlook Fed base Fed adverse

Stress case impairments driven by office

72

Real Estate equity stress summary

Total estimated portfolio losses utilizing impairment test:

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

31%28%23%Implied loss on

affected assets

($5.9B)($4.7B)($4.0B)Embedded loss on equity assets

17%11%5%% of NEA impaired

44%40%24%Implied loss rate on impaired assets

$1.5B

Fed base case

$2.6B$0.4B

4Q’08outlook

Equity impairments

Fed adversecase

(after impairments) ($3.6B) ($3.2B) ($3.3B)

($ in billions, pretax)

37

73

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

74

Commercial Lending and Leasing

38

75

Commercial lending & leasing overview

Who we are and what we do

EMEA22%

Asia11%

Americas67%

Portfolio Mix by Region ($230B)

Equipment leases & loans

54% Leveraged loans17%

Othersenior-secured

Factoring&ABL13%

Product Portfolio Mix ($230B)

10%

Other

6%

• Leasing and lending against hard assets for 25+ years

• Operations across 30+ countries

• No SIV/CDO exposure

• Organized by product and industry expertise

• Spread of risk: 1B+ transactions annually for 1MM+ customers globally

• 21,400 employees with over 25% dedicated to risk management

76

What we do

Equipment leases & loans

Product

$125 Collateral: hard, foreclosable assets•Inv grade & mid market customers•Equipment & OEMs we know

Assets Approach

•Essential use equipment•Remarketing expertise•Manufacturer support

ABL & factoring $30 Collateral: inventory & receivables •Working capital for mid mkt•Industries & assets we know

•Advance rate on eligible assets•Monitoring, audits, cash control•Credit insurance for factoring

Leveraged loans $38 Collateral: enterprise & assets•Mid mkt LBO & acq finance•Sponsors & industries we know

•Limited hold sizes & multiples•Originate to hold•Predetermined exit strategies

Franchise finance $13 Collateral: equipment & enterprise•Top tier and larger operators•Concepts & geographies we know

•Secured by assets & real estate •Avoid start-ups & locals•Leverage franchisor support

Inventory finance $6 Collateral: dealer floor inventory•Equipment & OEMs we know

•1st lien on inventory•In-house audit staff – 320 FTE•Manufacturer support

Focus

Originate to hold…dedicated industry teams…foreclosable assets

($ in billions)

39

77

2.3%

1.3%1.3%1.3%1.5%1.4%

1.8%

0.8%

0.4%0.1%0.2%

0.5%

0.9%1.1%

$1.0$0.9

$0.5

$0.2$0.1

$0.5

$1.4

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

Global lease & loan portfolioCredit costs

Loss rate

($ in billions)

Credit costs

Reserve % 1.93% 1.51% 1.24% 0.78% 0.56% 0.60% 0.80%

Delinquency and non-earnings

$2.7

$1.7$1.5

$1.2$1.3$1.5

$2.1

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

Delinquency %

Non-earnings

• Global equipment finance seeing weakness in transportation, construction and automotive

• Consumer-related inventory and U.S. restaurant financing under pressure

• Leveraged lending experiencing weakness in newspaper, automotive, radio and retail

Leveraging broader domain expertise

to drive portfolio solutions

• Created senior executive roles in each region to lead loss mitigation teams

• Shifted significant resources to drive work-out and portfolio management activities

• Reduced exposure to troubled sectors and restricted approvals to top-tier credits

Monitoring current portfolio trends

78

Leveraged

Market

$5.2 TrillionGE

$68 Billion

Sub debt

Re-packaged(CDO)

High Yield

Asset-based

Seniorsecured

ABL & factoring … assets betterpositioned than last cycle

2000 2008

Liquidation coverage (ABL) 1.2x 1.7x

Interest coverage (ABL) 1.3x 1.7x

Average exposure (ABL) $5MM $24MM

% Top 10 names 19% 7%

% Top 10 industries 66% 43%

Factoring 90-days 8.4% 4.2%

2000 2008Senior debt multiple 3.5x 3.5x

Senior interest coverage 1.3x 2.1x

% Top 10 names 18% 8%

% Top 10 industries 63% 61%

% > 4.5x senior debt multiple 31% 32%

Average exposure $13MM $27MM

Cov lite exposure 4.5% vs. 15% industry

Leveraged lending … strong U/W discipline, better spread of risk

Global lending overview

Senior secured portfolio rigorously managed by an experienced team of professionals

$30B

$38B

$70MM

40

79

Leveraged loans: outperforms industry benchmarks in periods of stress

2.37%

1.59%

0.49%

0.93%0.37%

0.30%

0.31%0.43%0.86%

4.60%

2.95%

0.46%2.08%

2.47%1.32%

1.00%0.29% 0.16%

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

Market loss rate*

GE loss rate

* Market Loss Rate computed using Moody’s speculative grade default rate x S&P LossStat 1st lien cash flow loss-given-default rate

• 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

80

Equipment lease & loan overviewRisk management approach

• Underwriting teams organized by collateral & industry

• Transaction analysis combines credit review and extensive asset valuation

• Continuous monitoring of portfolio with dedicated industry groups

• Experienced collection and work-out teams to exercise remedies and mitigate losses

• $14B of residual exposure

Industry mix ($125B)

15%

14%

8%

4%

Construction

Business Services

Other(<2%)

5%

Retail

ManufacturingMachinery

FinancialServices

Airlines

Food & Bev

Trucking 7%8%6%

%

4%

4%

Healthcare Providers

Technology

5%

5%

Transportation

Real Estate

3%

2%2%

Consumer Services

Automotive

41

81

U.S. equipment vs. benchmark

ELFA*

GE Equipment

• Underwrite to hold with emphasis on asset values and credit quality

• 500+ person global asset management and remarketing team (specialized by asset/ industry)

• 900+ person global collection and work-out team- weekly calls with underwriting teams and senior risk leaders

• Collaterals and industries where we don’t have strong domain expertise

• Broker/intermediary sourced deal flow

• Smaller regional restaurant concepts and collateral with thin secondary markets

• Auction channels that we don't manage with our specialized remarketing teams

Consistent performance over a sustained period

Differentiators Areas we avoid

U.S. Equipment lending charge-offs vs. ELFA

0.80%

1.41%

0.44%

0.71%

1.58%

1.17%1.11%

1.30%1.40%

1.50%

0.85%

0.48%

1.08%

0.64%0.57%

0.39%0.38%0.33%0.26%

0.46%0.55%

0.72%0.72%

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

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

82

Equipment residual values

Impairment methodology

Operating leases ($8B)• Portfolio reviewed at least annually

• If undiscounted rentals plus residual value < BV, leased asset impaired to fair value

Finance leases ($6B)• Reviewed at least annually

• Compare current estimated residual to residual established at lease inception

• If current < original estimate, record impairment if decline is deemed other-than-temporary

Total residual value ($14B)

1998-2008 RV performance

Copiers

6%

Health

7%

Marine

2%

Trucks

3%

Forklifts

2%

Asset management approach

• 500+ person global team organized by collateral, industry and geography

• Independent team sets residuals utilizing extensive secondary market & proprietary data

• Multiple remarketing channels to maximize value

• Dedicated remarketing team managing all 3rd

party sales including auction processes

• 80+% of equipment (ex-fleet) sold in place or renewed

80%

100%

120%

140%

160%

'98 '99 '00 '01 '02 '03 '04 '05 '06 '07 '08

% of Booked RV

Fleet Aircraft Copiers Total

Fleet

32%

Aircraft

30%

Other

18%

42

83

0-5

44%

11-15

8%

16-20

7%21-25

5% > 255%

6-10

31%

Portfolio mix by aircraft type ($13B)

Portfolio vintage in years ($13B)

Medium

13%

Rotary7%Large/Global

62%

Small10%

Turbo Props/Other 8%

• 72% of customers > BB- with 15% investment grade

• Average lease term is 10 years … stringent conditions protect economics upon early termination

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

• 41 aircraft ($384MM) on ground, avg. age 13 years vs. 30+ year useful life

• Original outlook: credit costs of $30MM; Fed base $78MM; Fed adverse $120MM

Well-diversified corp. aircraft portfolioHistorical residual performance

116%114%

117%

110%

105%106%

125%

114%107%

104%

110%

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

100%

(% of booked residual value)

Portfolio dynamics

84

• No residual risk to GE for U.S. Fleet product

• Established distribution channels for vehicles

– Retail & wholesale outlets– Broad multi-country distribution

– Web-based remarketing tools

• Rigorous monthly monitoring, increased deflation assumption and shifted away from large cars

• Residual realization pressured in Europe

– Outlook losses of $50MM … avg. loss $1k/car

– Currently experiencing losses of $1.6k/car

• Implementing multiple mitigation strategies … targeting $40MM

– Extending terms

– Direct remarketing

– End of term fees

• Original global outlook: credit/remarketing losses $70MM; Fed base $93MM; Fed adverse $116MM

Global exposure ($4.7B) Portfolio dynamics

Global fleet residual value exposure

Germany

28%

Other EU

22%France

20%

ANZ

18%

UK

8%

Japan

4%

Historical performance

101%103%

101%103%

105%

96%

100%

100%

104%

101%

101%

'98 '99 '00 '01 '02 '03 '04 '05 '06 '07 '08

100%

(% of booked residual value)

43

85

Exposures of interest

Probable restructuring scenario

• Strong operating results but company over-levered

• Bankruptcy filing anticipated

• Senior debt fully covered

• No impairment of GE exposure expected

Big 3 exposure Large cable company

Senior debt facility structure

• Secured by all assets

• Liquidation coverage of 1.8x

• Senior debt service coverage of 1.8x

• Senior to $14B of junior capital

GE has $750MM of $8.3B senior debt facilityAuto #1 $521

Auto #2 362

Auto #3 60

Total $943

• 93% supported by equipment leases & loans in core collaterals

• All facilities current with principle and interest

• Exposures amortizing monthly

• Proactively monitoring situation

• Potential Loss of $80–150MM …Driven by restructuring scenarios

($ in millions)

86

Stress testing summary

Originaloutlook

Americas equipment $349 $445 $599

Leveraged loans 499 672 880

Franchise finance 101 127 153

EU equipment 173 212 250

Asia Pacific 186 225 310

U.S. asset-based loans 92 117 151

All other 117 190 246

Total $1,517 $1,988 $2,589

Fedbase

Fedadverse Key assumptionsPortfolio

($ in millions)

Credit costs

• U.S. unemployment at Fed cases

• Further deflated asset values

• Decreased same store sales in Franchise

• Stressed exit scenarios in leveraged lending

• No benefit assumed for stimulus package and potential risk mitigation actions

Loss rate 0.93% 1.22% 1.59%

44

87

Stress scenarios – Americas equipmentPortfolio overview ($55B)

347269Net Charge offs

0.83%

349

1.3%

3.1%

2009 Outlook

0.79%

278

0.8%

2.2%

2008 Actual

Credit cost

Reserves %

90+

30+

Citi14%

Small ticket16%Fleet

13%

HFS13%

Canada16%

Stress assumptions

Key variablesOriginalOutlook

Fed.Base

Fed.Adverse

(2.0%) (3.3%)Change in GDP

2.9% 3.3%Probability of Default (PD)

4.2%

0.76% 0.97%Estimated loss rate 1.30%

349 445Est. Credit Cost 599

26% 29%Loss GivenDefault (LGD)

31%

Unemployment(average)

8.4% 8.9%7.7%

AAA to BBB-19%

BB+ to BB-41%

B+ and below40%

Credit Distribution Collaterals

Asset backed facilities with broad spread of risk by collateral,transaction size and geography

(1.8%)

• PD is impacted by slowing economy

• LGD increase is driven by price declines in major collaterals (aircraft, transportation, construction) and lower frequency of full recovery for small transactions

Outlook & stressed scenarios

Key metrics

LAEF

Const.

Comm’l Eq.11%

Office Eq.

Fleet13%

Healthcare

Trucking

Canada16%

7%

5%

Corp Air

8%

Other

9%4%

13%

14%

88

Stress scenarios – Leveraged loansOutlook & stressed scenarios

Stress assumptions

Senior secured credit facilities - primarily term loans collateralized by 1st lien on all assets

AAA to BBB-

7%

< B-28%

BB+ to BB-18%

333317Net Charge offs

1.2%

499

1,219

2009 Outlook

0.8%

475

827

2008 Actual

Credit cost

Reserves %

Non-Earning

Credit Distribution Industries

Cable/TV 10%

BusinessServices 10%

Printing &

Publishing 8%

Other51%

Radio/Broadcasting 9%

Chemicals andAllied Products 7%

Health Services 5%

B+ to B-48%

Key variablesFed.Base

Fed.Adverse

7.8% 8.6% 9.0%

(1.8%) (2.9%)

6.9% 8.3% 9.7%

19.9% 22.2% 24.9%

499 672 880

1.37% 1.84% 2.41%

Change in GDP

Probability of Default (PD)

Estimated loss rate

Est. Credit Cost

Loss GivenDefault (LGD)

Unemployment(average)

(1.6%)

• PD increase driven by weakening economic environment and deteriorating obligor financial health

• LGD increase driven by greater uncertainty in ultimate resolution value

Portfolio overview ($38B)

Key metrics

(64 industries <5%)

OriginalOutlook

45

89

Stress scenarios – Franchise finance

80% of portfolio concentrated in 45 larger concepts

10038Net Charge offs

1.75%

101

2.4%

4%

2009 Outlook

1.73%

131

1.6%

2.7%

2008 Actual

Credit cost

Reserves %

90+

30+

Bev/Other

RestaurantCasual 26%

C&G11% L/S

Hotel8%

Stress assumptions

Key variablesFed.Base

Fed.Adverse

8.4% 8.9%

(2.0%) (3.3%)

5.3% 5.6% 6.1%

101 127 153

21% 25% 28%

7.7%

1.12% 1.41% 1.71%

RestaurantQuick-service

49%

Segments

Change in GDP

Probability of Default (PD)

Estimated loss rate

Est. Credit Cost

Loss GivenDefault (LGD)

Unemployment(average)

(1.8%)

Credit Distribution

• PD increase resulting from higher unemployment and stressed same store sales

• LGD increase driven by drop in real estate values

B+ and below37%

BB+ to BB-58%

AAA to BBB-

5%

Outlook & stressed scenariosPortfolio overview ($13B)

Key metrics

5%

OriginalOutlook

90

Stress scenarios – EU equipment

Stress assumptions

Key variablesFed.Base

Fed.Adverse

173 212 250

0.98% 1.20% 1.42%

163145Net Charge offs

1.44%

173

1.29%

2.39%

2009 Outlook

1.24%

147

1.03%

2.29%

2008 Actual

Credit cost

Reserves %

90+

30+

8.9% 9.4%

(1.1%) (1.8%)

26% 30% 32%

8.1%

3.8% 4.0% 4.4%

Fleet30%

CDF 9%

EF58%

Asset backed facilities with broad spread of risk by collateral,transaction size and geography

Change in GDP

Probability of Default (PD)

Estimated loss rate

Est. Credit Cost

Loss GivenDefault (LGD)

Unemployment(average)

(1.0%)

Credit Distribution

• PD increase driven by slowing economy

• LGD increase driven by reduction in fleet prices and lower frequency of full recovery for small transactions

AAA to BBB-

BB+ to BB-51%

B+ and below38%

Outlook & stressed scenariosPortfolio overview ($18B)

Key metrics

11%

Healthcare 3%

Fleet30%

Inventory9%

Office Equipment

22%

Const./Mfg. Equipment

24%

Aircraft 7%

Other 5%

OriginalOutlook

Collaterals

46

91

Stress scenarios – Asia Pacific

Stress assumptions

Key variablesFed.Base

5.7% 6.0%

(2.2%) (4.2%)

4.0% 4.5% 5.7%

186 225 310

1.12% 1.36% 1.87%

28% 30% 33%

5.2%

Senior secured financings, primarily equipment, in developed economies

Japan 60%

ANZ 28%

India 5%

Other 7%

Credit Distribution Countries

Fed.Adverse

159114Net Charge offs

1.0%

186

2.2%

3.4%

2009 Outlook

1.0%

152

1.4%

2.4%

2008 Actual

Credit cost

Reserves %

90+

30+

Change in GDP

Probability of Default (PD)

Estimated loss rate

Est. Credit Cost

Loss GivenDefault (LGD)

Unemployment(average)

(1.2%)

• PD increase is driven by deterioration in Japan and Australia economy

• LGD increase is driven by moderate reduction in fleet vehicle prices and collateral value depreciation

BB+ to BB-59%

AAA to BBB-19%

B+ and below22%

Outlook & stressed scenariosPortfolio overview ($20B)

Key metrics

OriginalOutlook

92

Senior secured credit facilities secured by 1st lien on current assets, managed via formulaic borrowing base

Key variablesFed.Base

Fed.Adverse

7.7% 8.4% 8.9%

Stress assumptions

Credit Distribution

Stress scenarios – U.S. ABL

Industries

5523Net Charge offs

0.7%

92

215

2009 Outlook

0.3%

36

90

2008 Actual

Credit cost

Reserves %

Non-Earnings

Retail12%

Healthsvcs 10%

Wholesalenon-durable

MetalBus Svcs

Other41%

Wholesaledurable 18%

(2.0%) (3.3%)

9.1% 10.6% 12.5%

92 117 151

0.91% 1.16% 1.50%

10.0% 11.0% 12.0%

Change in GDP

Probability of Default (PD)

Estimated loss rate

Est. Credit Cost

Loss GivenDefault (LGD)

Unemployment(average)

(1.8%)

< B-42%

9%

AAA to BBB-

B+ to B-44%

8%6%5%

• PD increase driven by weakening economic environment and deteriorating obligor financial health

• LGD increase driven by lower current asset recovery value

Outlook & stressed scenariosPortfolio overview ($10B)

Key metrics

BB+ - BB-5%

(40 industries <5%)

OriginalOutlook

47

93

GECAS

94

GECAS dynamicsWho 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

48

95

Industry overviewIndustry World fleet

↓ Anticipated global traffic declining by ’08 … trending higher

↑ Aircraft demand continues to slow … OEM order deferrals; fleet reductions increase via retirements/scrapping/parking

↑ Lower jet fuel prices helps compensate for weakness in demand

↑ Due to pro-active capacity cuts & alternative revenue fees, U.S. slightly better positioned

↑ Accelerated retirement of least efficient aircraft

↔ Capital markets liquidity scarce … harder to secure financing

GECAS well-positioned to manage through another cycle:

� Asset-based financing

� Proven placement capability

� Strong industry experience

� Diversified portfolio

Total Parked Passenger Aircraft = 2,025

In-Transit(194)

Parked>1yr(865)

OlderTypes(459)

Age>20yrs(156)

VIABLEPARKED

351

TotalWorldFleet=

20,392

CargoAircraft2,072

TotalWorld

PassengerFleet=

18,320

ParkedFleet2,025

TotalActiveWorld

PassengerFleet=

16,295

LeastEfficient2,331

(e.g. MD80, 732, BAE, DC9, 727, A300, 742)

MoreEfficient13,964

(e.g. 737, A320, 777, A330, 744, CRJ, ERJ, EMB)

LESS LESS LESS =

(GECAS Impact)

(GECASPAX fleet)

1,386

21

0

96

Strong asset backed financing & industry expertiseIndustry/airline monitoring

• Continuous prospective focus on industry/assets: monitor production rates, passenger growth and retirements to anticipate cycle

• Frequent and direct dialogue with OEMs/airline management on current products, new technologies, and forecasts

• Asset based lender/investor with significant technical expertise

• Target high quality collateral – excellent buy & hold aircraft

• Limited older and out of production technology

Equipment

Focused approach on assets utilizing deep domain expertise

Proprietary valuations tool

• Forecasts of aircraft value and loss given default models

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

49

97

Performance

Placing ahead … and through downturn

Demonstrated placement capability

GECAS approach

• Advanced placement of roll-off and skyline, easing cycle impact

– Remarketing initiated at least 18 months in advance of expected re-lease date

– 80+ technical specialists servicing assets globally

• History of pre-placing assets in anticipation of restructurings at weaker credits… actively manage exposures

– Minimize losses, AOG & downtime

– Bi-weekly portfolio review process

– Granular watch rating system

� Stronger position than last downturn … placed ahead of projected cycle

� Closely monitoring & placing unanticipated roll-offs (52 in 2008, 16YTD in 2009)

Placement as of 1Q’08:

2008 2009 2010 2011

Roll-off 99% 66% 23% 0%Today 90% 37% 15%

New Order 100% 100% 95% 51%Today 100% 100% 69%

98

Attractive portfolio mix supports cycle management*% of Aviation exposure $’s at 4Q’08

Diversified portfolio

• Portfolio* well positioned with high demand, widely used, fuel efficient aircraft

– Average age: 7 years

– ~85% of fleet is < 10 years old

– ~85% of narrow body fleet is high demand A320 & 737NG

– Majority of wide body fleet has broad user base and can be readily redeployed (777 & A330)

• Deliberate evolution of portfolio to operating leases & secured loans

– Defensive loans provide cross collateralization with good LTVs

• Asset-based approach facilitates redeployment and mitigates airlines’ credit quality

– Strong track record managing through similar cycles

• Geographically diverse

Key comments

Leased assets

20%

Products

Cargo RJs

Wide-body

Narrow-body

9%16%

20%55%

Operating LeaseFinance

Lease

Loan

Other

2 %

19 %

14 %

6 5 %

15%34%

20%

5%

7%

19%

US

Asia

C&LA

Canada

Europe

MAC

Regions

50

99

Stress analysis

Values are driven by changes in supply & demand

• All aircraft types are expected to be negatively affected by global recession

• Weaker outlets for older aircraft

• OEM production cuts, retirements & parked aircraft mitigate portfolio impact

~$265

~$635

~$320

’09 Outlook Base Adverse

Aircraft values

LA GDP

AIRCRAFT

VALUES

DEMAND(Traffic)

SUPPLY(Active Fleet)

WORLD GDP

FLEETEXITING

FLEETENTERING

RetirementsParkingConversions

ProductionUtilizationNew OEMs

PRICEFareStimulation

US GDP

EU GDP

AS GDP

OTHER GDP

Impairments/losses

Current dynamics

$109

~$265

$128

’07 ‘08 ’09 Outlook

’09 outlook: assumes a higher 1-yr decline vs. the average 1-yr drop during last downturn

US GDP impacted by: unemployment, housing, production, etc

(Pretax $ in millions)

Base: assumes the worst 1-yr decline from last downturn occurs in ’09

Adverse: assumes the worst case peak-to-trough cycle decline in last downturn (’00-03) all occurs by ’09

100

Successfully managed through previous periods of distress

36 from Varig (’02-’03)

22 from ATA (’05)

7 from Kitty Hawk (’07)

6 from Kingfisher (’08)

8 from XL Aviation (’08)

Fleet redeployments:

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)

Improved collateral position with ~$155MM spares loan – 4Q’08

Improved collateral position with ~$240MM aircraft loan - 3Q’08

Restructurings/defensive deals:

Improved collateral position through~$360MM spare parts/engine loan – 4Q’08

Proactive approach to distressed accounts

11

22

33

51

101

Summary

Proven track record

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

102

U.S. Consumer

52

103

U.S. Consumer FinanceWho we are and what we do

• Founded in 1932

• Diversified consumer lender; $31B PLCC& $22B Sales Finance managed receivables ($27B on book)

• Broad geographic distribution with 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

2008 Served assets

PLCC$22.9B

Dual Card$8.1B Retail

$9.5B

CareCredit$4.8B

Power$3.7B

RVM$3.8B

104

Tough U.S. retail environment

GE risk actions driving volume down

U.S. retailer salesYoY % change

GE programs

Retailer Feb. ’09 Act. YoY V % GE YoY %

$1,316 (9%) (17%)

$539 (14%) (24%)

$745 (7%) (14%)

$20,071 +8% (10%)(14%)

(12%)

(10%)

(8%)

(6%)

(4%)

(2%)

0%

2%

4%

Mar

'08

Apr

'08

May

'08

Jun

'08

Jul

'08

Aug

'08

Sep

'08

Oct

'08

Nov

'08

Dec

'08

Jan

'09

Feb

'09

Retailer Sales Retailer

GE estimate

53

105

Private Label vs. Bank Cards(2008)

Avg. served assets ($13.5B on book) $29B ~$850B

Average balance $620 $3,000

Average credit limit $2,512 $10,800

Sales/active $1,298 $5,580

Turnover (months) 5.7 6.5

Margins (net CV/ASA) 19.7% 12.4%

Write-offs (NCOs)/ASA 7.1% 6.0%

% of accounts that charge off 5.7% 4.1%

Spread (ex-reserves & OPEX) 12.6% 6.4%

Avg. FICO 699 700

Profit sharing Yes No

GE PLCC Bank carda)

a) Source: Citi, Chase, BoA, Cap One 2008 quarterly reports and supplemental datasets & Argus Syndicated Studies(3Q’08 Co-Brand Retail Benchmarks)

Smaller loss severity … 23% of industry line &21% of balance

Higher margins to cover losses … 2x Spread

PLCC has higher yields on smaller balances

Comparable credit quality

b)

b) Excludes benefits of profit or (loss) sharing with retailers

Dampenslosses

106

Significant Underwriting actionsRisk actions

New Accounts

� PLCC FICO cut off to 640, DC to 760

� Sales Finance FICO cut off moved to 710

�New account lines down 10% PLCC & 20% SF

Portfolio

� Cut lines 37% in PLCC & 43% in Dual Card

� Removed $216B of ‘Open-to-Buy’ through account closures & credit line decreases

�No authorizations on delinquent accounts

�No over limit authorizations on Accounts<780 FICO … cutting out 2.5MM authorizations

� Exited higher loss portfolios … RV/Marine & Home Improvement portfolios ($4.1B)

� Added over 1,000 Collectors to mitigate delinquencies

Began underwriting activity in early 2007

54.9% 53.4% 51.3%52.7%48.3% 46.7%

Cut credit lines

$1,610

$990

Revolving

$4,953$3,984

SalesFinance

Raised cut-offs and reduced approvals

728 730744

3Q 4Q FebruaryOctober February

Previous Year

Current Year

Cut open to buy ($B)

$372

’07 NewVolume

$36

’08 Red.

($200)

’08

$192

1Q’09 Red.

($16)

($216B)

(39%) (20%)

+38 FICO768

(460 bps.)

Avg. U.S. FICO: 693

Avg. FICO Approval rates

54

107

New volume RACV by FICO band

New PLCC volume profitable

Risk actions in place for higher unemployment

Return hurdle

C BC/B B/A A/A+ A+A

FICO

(39%)

(1%)

4%

9%

14%

19%

<586

586-610 611-640 641-670 671-695 696-725 726-755 756-780 781-810 811-835 836+

7.7% U/E

8.4% U/E

8.9% U/E

D/C

No new accounts+ credit line decreases on existing accounts

Credit line decreases on existing accounts

Dual card cutoff 760

Risk action

GE Risk grade Average

108

18.35%

2008

Driving $592MM price to mitigate higher losses

Price

Driving yield to offset lossesRevenue / Average Net Investment %

17.88%

2007

19.64%

2009 Outlook

$399

$228

$592

Late Fee % 3.68% 4.06% 4.61% 55 bps.

+129 bps.

50

349

110

382

100Additionalopportunity

Merchant

Consumer

+$193MM

Yield up with more challenging economy

� Revolve rates +240 bps. SF, +86 bps. PLCC

� Average late fee +5% for Sales Finance & 9% for PLCC

Increase Pricing

� Avg. APR up ~60 bps.

� Late Fee assessments up: +620 bps. Sales Finance & +330 bps. PLCC

� Terms: changes driving other fee income +$50MM

Merchant Pricing up

� Renegotiate contracts

� Promotional pricing up 25% YoY

22

33

11

20082007 2009 Outlook

55

109

16.23%15.15%15.90%

17.88%20.42%19.52%

22.63%

52.4%

46.5%47.9%

42.6% 43.8%

39.0%36.5%

1Q

'06

2Q

'06

3Q

'06

4Q

'06

1Q

'07

2Q

'07

3Q

'07

4Q

'07

1Q

'08

2Q

'08

3Q

'08

4Q

'08

1Q

'09

Credit Costs increasing

Entry rates reflect tightened underwriting…still seeing pressure on backend collections

Credit Cost (on book)

Reserve Change

Write Offs (NCOs)

’07 ’08 ’09 OutlookReserve % 3.29% 5.77% 6.77%

30+ DQ. (Served) 5.53% 7.19% 7.88%

90+ DQ. 1.98% 2.82% 3.46%

2.79%

4.91%

3.93%

9.58%

4.17%

6.19%

13.51%

11.10%

6.96%

9.95%

10.40%

10.93%

11.49%

10.52%

11.37%

10.84%

1Q '06 3Q '06 1Q '07 3Q '07 1Q '08 3Q '08 1Q '09

est

11.28%

Actual

4 yr. Avg.

3 due CE

4+ CE

Entry rate at historic lows

Collections more challenging

45.0%

4 yr. avg.

18.3%

4 yr. avg.

(133bps.)

(850bps.)

110

Historical DQ – U/E correlation breaks in July ’08 as U/W actions take hold

Delinquency - U/E correlation

Janu

ary

Febru

ary

Mar

chApr

il

May

June

July

Aug

ust

Sep

tem

ber

Oct

ober

Nov

ember

Dec

ember

2008

‘09 Outlook

Fed. Base

Fed. Adverse

U.S. unemployment

4.9

7.2

7.6

5.1

7.4

8.1

8.5

5.5

7.6

8.5

8.8

6.2

8.0

8.9

9.3

7.2

8.5

9.0

10.0

• Unemployment outpacing Delinquency

– 6 month U/E average � 48% YoY

– Average 30+ delinquency � at 27%

– Average 90+ delinquency � at 32%

DQ. vs. U/EYOY % change

-30%

-20%

-10%

0%

10%

20%

30%

40%

50%

60%

70%

80%

Jan-06 Jul-06 Jan-07 Jul-07 Jan-08 Jul-08 Jan-09

U/E

90+

30+

Underwriting actions

Historical ratio(U/E:Write-Off)

1 : 1.1

DQ – U/EVariance

Feb. 8.1% vs. 7.3% Plan

56

111

• Interest rates

• Unemployment

• Wages & inflation

• House prices

• Refinance opportunities

Global Consumer stress test framework

Macro environmentVolatility & inter dependency relationships

Risk layers

Portfolio performance & assumptions

• Observed PD/ LGD

• Cure rates & Refi rates

• Recovery assumptions

• Additional loss on sale assumptions

Output• Analysis by geography &

product type & segments

• PD, LGD and Loss distributions by scenario

• Sensitivity to individual risk drivers (macro + assumptions)

ExternalForecastrange

Model

•Default = borrower’s option

•Exercise probability based on:– Cash flows (DTIR)

– Leverage (LTV)

•Non-linear relationships:– Skewed distributions

– Fat tails

• Severity: collateral/collections

Scenario Generator

•Monte Carlo simulation

•Possible paths of macroeconomic variables

• Credit grade

• LTV

• Debt-to-Income (DTIR)

• Product structure

• Credit insurance

• Quarterly back testing

• Roll rate analysis triangulation

Validation

Input Risk assessment &decisioning model (RAD)

• Loss and capital adequacy planning

• Risk mitigation planning

• Portfolio strategy

Uses

112

Stress scenarios – PLCCPortfolio overview ($30.4B)

Credit distribution Portfolio vintage

2009 Outlook & stressed scenarios

Stress assumptions

Key variablesFed.Base

Fed.adverse

• 54% prime book• Average FICO 699

A+ 37%

A 17% B 21%

C 12%

D 13%

Pre 200774%

’0812%

200714%

8.4% 8.9%Unemployment(average)

10%Recovery rate 25%

1,621956Net Write-offs (NCOs)

6.1%

2,202

3.6%

8.1%

2009 Outlook

6.0%

1,530

3.5%

7.5%

2008 Actual

Credit Cost

Reserves %

90+

30+ (Served)

Key metrics$2,552Est. Credit Cost $2,879

18.9%Credit Cost % 21.3%

On book $13.5B

7.7%

8.0%

$2,202

16.3%

3.6% 4.3% 5.0%90+ Delinquency

‘08

5.8%

12.3%

$1,530

12.1%

3.5%

Stress case does not include :

22

11 Stimulus benefits

Future benefit from risk actions

‘09Outlook

57

113

Stress scenarios – Sales FinancePortfolio overview ($21.5B)

Credit distribution Portfolio vintage

Stress assumptions

• 61% prime book• Average FICO 685

A+ 37%

A 24%B 17%

C 11%

D 11%

Pre 200731% ’08 40%

2007 29%

7.7% 8.4% 8.9%Unemployment(average)

7.8% ↓16%Recovery rate ↓25%

Key variablesFed.Base

Fed.adverse

1,204744Net Write-Offs (NCOs)

7.7%

1,784

3.3%

7.7%

2009 Outlook

5.4%

1,515

2.4%

6.8%

2008 Actual

Credit Cost

Reserves %

90+

30+ (Served)

Key metrics$1,784 $2,194Est. Credit Cost $2,398

11.1% 13.7%Credit Cost % 15.0%

On book $16.0B

3.3% 3.8%90+ Delinquency 4.1%

2009 Outlook & stressed scenarios

$1,515

10.3%

12.4%

2.4%

5.8%

‘08‘09

Outlook

Stress case does not include :

22

11 Stimulus benefits

Future benefit from risk actions

114

Mortgage

58

115

($ in billions)

Overview

• $60B assets across 19 platforms

• Protected by Mortgage Insurance (MI)

• Exited $1.5B ANZ assets in Feb ’09

U.K.$22

ANZ$13

France$11

Poland $5

Mexico $2Hungary $1

Others $5 (12 platforms)

Spain $1

4Q’08 assets

Net income history

61% A/A+ credit rating

18% 18% 19% 18% 18% 18%

23% 21% 20% 20% 20% 21%

59% 61% 61% 62% 62% 61%

'06 '07 1Q '08 2Q '08 3Q '08 4Q '08

A+/A

B

C/D

’05 ’06 ’07 ’08

Mortgage overview

$0.7

$0.9

$1.2 $1.1

Platform>80% current LTV with MI Exceptions

U.K.

Australia

France

Poland

Pre ’03 vintage, HPI impact

Run-off portfolio

31%

66%

96%

100%

Seasoned book; Prime

>80% A/B credits and MI protection

1.6% 1.7% 1.9% 1.6%ROI%

n/a

116

Q4'08Q3'08Q2'08Q1'08Q4'07Q3'07

0

500

1,000

1,500

2,000

Mortgage portfolio performance90 day delinquency (top 4 markets)

90%DQrate

0.3%

0.2%0.2%0.2%0.1% 0.3%

1.1%

0.7%

0.1% 0.1%0.0% 0.1%

Q4'08Q3'08Q2'08Q1'08Q4'07Q3'07

Annualized credit costs

NCO /ANI

Credit costs / ANI

Intense focus on REO

Avg. value $100,000

$1,354

557 986 U.K.

$1,868

Total Mortgage

Poland0%

2%

4%

6%

8%

10%

12%

Sep ‘07 Dec’07 Mar ‘08 Jun’ 08 Sep ‘08 Dec ‘08 Feb ‘09

14%

Australia

France

189

217 Australia

TotalMortgage70%

with MI

Indexed portfolio LTV (top 4 markets)

51%

49%

'08

U.K.

>80%

<80%

59

117

Down $21.4

Down $24.4

Shrinking Mortgage everywhere($ in billions)

Cut volume dramatically … February YTD down 88%

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%)

Country 2008 2009 outlook V$ V% 2008 2009 outlook V$ V%

’08 ’09 outlook

$13.8

$1.0

’08 ’09 outlook

$61.3

$51.3

Originations ENI

‘07

$72.7

’07

$25.4

118

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

60

119

U.K. Home Lending (U.K.-HL)

Repositioned to de-risk the business

$22B mortgage assets

1st mortgage$19.1

2nd mortgage$2.6

• Created from acquisitions of igroup (’01) & First National (’03)

• Originations through intermediaries

• In-house underwriting, collections & asset management

• Mortgage originations down 97%

• Solid LTV. … 78% and MI coverage on 66% of > 80% LTV

• Reorganized business to focus on collections & loss mitigation

• ~1,350 employees

Originations

$0.1

$10.7

’07 ’08 ’09

($ in billions)

Down $10.6

$4.8

120

Expect3-5% in’09-’10

U.K.-HL comparison to U.S. lendersU.S. GE U.K.-HL

Business model

Intermediaries

Originate to sell

Non Regulated

Originate to hold

100% Regulated

Loan

Mortgage insurance Minimal 66% of >80% indexed LTV

Consumer

− Owner occupied

− Origination LTV

− Pricing

− Term (avg.)

House supply Oversupply Shortage

Write-off rates (’08) 10-12% <1%

~70% ~97%

100%+ ~78%

30 years 20 years

Variable teasers ~60% fixed

~7.2% ~6.3%− Unemployment (’08)

Pressured by U.K. economy, but fundamentally different from U.S.

− Bankruptcy filing Low barrier High barrier

30+ DQ rate (’08) 40-45% ~21%

Our Balance Sheet

Better Consumer dynamics

Better credits

61

121

U.K. economic environment

HPI % (YOY change) –b)

(a- Source: Global Insight

(b- Source: Actuals from HPI; GE forecasts

Planning for a difficult environment

GDP % -a)

3.03.4%

2.6

1.8

-1.80.3

3Q’07 4Q’07 1Q’08 2Q’08 3Q’08

4Q08

’09 forecast

’10 forecast

-3 ~0%

1.1

5.2

10.7%

-16.2 -17.7-12.4-6.1

3Q’07 4Q’07 1Q0’8

2Q’08

3Q’08

4Q’08Feb ‘09

’09 forecast

’10 forecast

-10 -5%

122

Dialer

Portfolio management

Secured collections

Loss mitigation

90+0-90

MI

1st 90+ inbound and outbound

2nd 90+ inbound and outbound

2nd 0-90 i/b & non-high risk

o/b

2nd 0-90 high risk outbound

Tracking & monitoring

Liquidation: WO’s, short

sales

Retention: Modification

Set up

Litigation

Advisors

Customer service

COO

1st 0-29 inbound & outbound

1st 30-90 i/b & non-high risk

o/b

1st 30-90 high risk o/b

Unsecured collections

U.K. collections and loss mitigation

Shifted entire organization to focus on collections / workouts

New collections organization Actions taken

� New organization in place

� Dedicated loss mitigation group

� Top talent focused on collections/ workouts

� Increased collectors 3x to ~510

� Structuring hardship & workout offers based on segmentation analysis (LTV, recent payment history & product type)

� Engaged McKinsey … on site supporting new process

� Weekly reviews

62

123

U.K. credit experience30+ & 90+ Delinquencies Net Charge-offs (NCO)

14.4% 14.4%

21.0%

15.3%

13.3%

6.3%7.4% 7.0% 6.8%

11.0%

2004 2005 2006 2007 2008

30+ DQ rate90+ DQ rate

$25$14

$115($ in millions)

$69

$29

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

Drivers of NCO Reserving policy

Past due / event Policy

• 90 days

• 360 days/ Repo

Non-earning; Revenue suspended until account cures to < 90 days

Marked to Net realizable value; Quarterly marks thereafter

($ in millions)

• Repo sale Book final gain / loss on sale

’05 ’06 ’07 ’08’04

’08

$115

~$17

~$124

~($26)

Loss on sale

360+ days / Quarterly MTM

MI recoveries

� Added ~340 collectors

� New Loss Mitigation team

� Intense REO focus … CFO led

� MI provides protection

DQ’s pressured by weaker economy

• Base reserve Model driven

124

1st Mortgage coverage

�Coverage for 80% or greater LTV originations … in place since ‘03

�Certification process at origination

U.K. Mortgage insurance coverage

Insurance example

Property Value (PV) $200,000

Original LTV 90%

Loan Amount $180,000

80% of PV $160,000

Insurance coverage $ 20,000

PV with -15% HPI $170,000

Re-Indexed LTV 106%

Loss before MI $10,000

MI claim $10,000

Net loss $0

’08 assets $19.1B

($ in billions)

No MI $11.4

MI $7.7

With MI No MI

$200,000

90%

$180,000

N/A

$0

$170,000

106%

$10,000

MI provides additional credit support

� Insurers rated “A” … locally regulated & capitalized

�~99% claims effectiveness

$0

$10,000

�59% of delinquent balances with > 80% LTV covered by MI

63

125

U.K. risk layering and losses

90+ DQ %

Total

IndexedLTV%

Credit Grade

($ in billions)

LTV and MI mitigate charge-offs

1stMortgage

0-80% 80-90% >90%

A+/A B C/D A+/A B C/D B C/DA+/A

$1.9 $2.6 $2.7 $0.6 $1.3 $1.4 $1.6 $3.6 $3.4

$7.2 $3.3 $8.6

$19.1

2nd Mortgage

$2.6

0-80%

$1.2

80-90%

$0.5

>90%

$0.9

C/D

$0.5

A/B

$0.7

C/D

$0.2

A/B

$0.7

C/D$0.2

A/B

$0.3

6.8% 10.8% 13.8% 9.7% 14.6% 20.7%

90+ DQNon-earners

$2.4 ($0.8)

($1.3)

$0.2

Cure Est. collateralvalue

Est. netcharge-offs

($0.1)

Est. MI

Non-earners to NCO

126

U.K. Mortgage stress scenarios

~$159$115Net Charge offs (NCOs)

~2.9%

~$564

~16.5%

~29.2%

‘09 outlook

0.8%

$201

11.0%

21.0%

‘08 A

Credit costs

Reserves %

90+

30+

$MM

Portfolio overview ($22B)

Key metrics

Credit mix

• Avg. origin LTV: 78%• Avg. indexed LTV: 84%• Vintage: Pre-’06 26%, ’06 23%, ’07 34%, ’08 17%

Indexed LTV mix

A 20%

B 38%C 24%

D 12%

A+ 6%

Pre 200749%

‘08 17%

2007 34%

>100%27% <80%

38%

80-90%17%

90-100%18%

2009 outlook & stressed scenarios

Key variables’09

OutlookU.K.Base

↓10%HPI decline

2.6% 4.5%Estimated credit cost %

5.1%

U.K.Adverse

↓12% ↓15%

12%Loss on sale 20% 25%

Unemployment (average)

8.5% 9%7.4%

$558 $995Estimated credit costs $MM

$1,125

Sources for macro economic outlook range:FSA guidance on stress testing, CML (Council of Mortgage Lenders), Global Insight, Moody’s Economy.com, RICS (Royal Institution of Chartered Surveyors)

Stress case also includes:

11 Limited refinance ability for high risk segments

22 Counterparty risk to mortgage insurance reliance

’08A

↓19%

0.7%

5%

5.7%

$201

64

127

Mortgage stress - remaining portfolios

’09 outlook Base Proxy Adverse Proxy

Australia HPI decline 2% 5% 10%

Addn’l loss on sale 15% 20% 25%

Unemployment 5% 5% 6.4%

FranceHPI decline 0% 5% 15%

Addn’l loss on sale 20% 20% 30%

Unemployment 8% 8.6% 9.2%

MexicoHPI decline - - 10%

Addn’l loss on sale - 15% 20%

Unemployment 4.3% 5% 5.8%

SpainHPI decline 30% 35% 45%

Addn’l loss on sale 15% 15% 15%

Unemployment 13.9% 20% 22%

IrelandHPI decline 9% 15% 19%

Addn’l loss on sale 13% 20% 20%

Unemployment 9.2% 13% 19%

Key stress assumptions

Portfolio (assets) ’09 outlookFed BaseProxy

Fed AdverseProxy

Australia $4 $6 $43

($ in millions)

Mexico 9 12 37

Spain 55 71 100

Rest of World 18 22 62

France 21 30 59

$13B

$11B

$2B

$1.3B

$3.6B(Ex UK and CEE)

Ireland 8 35 47$0.9B

$115 $176 $348

Credit costs

128

SummaryU.S. Consumer

� Took loss actions early … entry rates down

�Mitigating losses with profit sharing and revenue actions

� Solid reserve position … 2x non-earnings

Mortgage

� Low risk and stable performance outside U.K.

� Solid U.K. underwriting, low LTVs and MI mitigatedown cycle

�Aggressive collections/loss mitigation focus

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

65

129

GE Capital Global Banking

130

Emerging markets bank dynamics

Who we are and what we do

- 89% Europe

• 15 countries presence … diversified assets

- 8% Asia

- 3% Central America

• Well positioned in core markets

- Top 5 in Czech & Poland

- Top 3 in Turkey & Central America

• High quality portfolio

- 56% secured financing

- 82% A/B risk credit grades

- Underwrite to hold

Strong franchise

• Wholly owned banks ($27.8B) + bank JVs ($4.7B)

-~ 3,000 branches

-~ 25MM customers

Assets $11.7B

Poland

Assets $6.7B

Czech/Slovakia Assets $4.7B

Hungary

Assets $0.8B

Latvia

Assets $0.6B

Romania

Assets $1.9B

Turkey

Assets $2.5B

Thailand

Assets $1.0B

Russia

Assets $1.0B

LatinAmerica

66

131

46%

17%

19%

11%

7%

PortfolioProduct portfolio

$22B 4Q‘08 Receivables (%) a)

Credit profile

SME

Sales Finance

Cards

Mortgages

Auto

8%

20%

PersonalLoans

21%

6%

35%

10%

Credit distribution (%)

Diversified portfolio … 63% A/A+ credit quality

A+

D

C

B

A

a) $27.8B total assets

132

GE early mover in Eastern EuropeFinancials

Conservative entry … organic growth over time

Czech/Slovakia

PROSPERITA’97-’00

Romania/Latvia

’06

Hungary

’01

Poland

’95-’98-’08

PAM

Russia

’04

2008

Assets ($B) 27.1

NI ($B) 0.5

ROI (%) 2.2%

’05-’08 CAGR %

20%

15%

(40) bps.

2005

10.5

0.3

2.8%

Credit performance

Credit Cost %

30+%

Global Consumer%

’02 ’03 ’04 ’05 ’06 ’07 ’08

2.89%

1.79%

7.47%

2.99%

5.72%

2.42%

ex-Acq. & FX

67

133

Slower Eastern Europe growth

Oct.’08 forecast Mar. ’09 forecast

Assets $1.0B$4.7B

(1.8%)

$0.6B$11.7B

CEE GDP growth%*

$0.8B

*Sources: EIU Reports February/March 2009

2009 loss planning reflects tougher environment

$6.7B $1.9B

Russia

5.5%

(2.0%)

Hungary

3.0%

(3.0%)

Romania

4.8%

Poland

3.8%

0.7%

Latvia(12.0%)

(0.5%)

Czech

4.3%

(2.0%)

Turkey

3.2%

(2.0%)

GE 4Q’08

134

Eastern Europe outlookCurrent challenges driven by…

Expansion led by EU accession & GDP growth

Banking penetration remains low

Macro imbalances

Currency volatility

Structural dependencies

Czech Hungary Latvia Poland Russia

Exports/GDP

FX lending

Loans / Deposits

80 4780 3242

57 888 2125

132 23871 11692

Czech

42%

Hungary

101%

Latvia

114%

Poland

52%

Russia

31%

Deficit / Surplus

(1.9) (1.9) 3.6(1.4) (3.0)

0

0.2

0.4

0.6

0.8

1.0

1.2

1.4

1.6

1.8

2.0

2.2

CEE

RussiaMiddle East

ChinaIndia

LatinAmerica

Africa

WesternEurope

NorthAmerica

0 10 12 16 182 36144 6 8

Revenue CAGR (2000–2007)

Margins 2

007, p

erc

ent

* Asia excl. China, India and JapanSource: EIU, McKinsey, FPK, UBS, Reuters

March’08 March’09 V%

Czech 16.0 20.4 ↓ 27%

Hungary 163.9 228.4 ↓ 37%

Poland 2.2 3.5 ↓ 53%

Russia 23.5 34.7 ↓ 45%

1

2

3

External debt / GDP

Total banking revenue / GDP

WE Middle East

ANZ North America

Asia* Latam

9.4%

6.8%4.8% 4.7% 4.5%

3.6%

Eastern Europe

3.0%

Near term potential volatility … long term attractive

68

135

39%

29% 18%31%

18%

25%

Core Eastern Europe banks

$0.6B$2.5B

$11.7B

’00 ’04 ’08

4.2% 3.8% 2.2%

Assets

30+%

$1.4B$3.4B

$6.7B

’00 ’04 ’08

5.2% 2.1% 2.2%

’01 ’04 ’08

$1.1$2.5B

$4.7B

1.4% 1.4% 2.7%

SF 6%

PLoans30%

SME 24%

Cards 6%

Mortgages23%

Auto11%

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

PLoans 16%

SME 13%

Cards4%

Mortgages55%

Auto5%

SF7% PLoans

9%

SME 42%

Cards 3%

Mortgage25%

Auto19%

SF 1%

#5 in Poland #4#4 in Czech #8#8 in Hungary

Solid businesses… high quality portfolio

* CAGR % ex-Acquisition

*BPH

136

1

FX mortgage underwriting

Centralized underwriting & full docs on every loan

-Property valuations, income verification, etc.

Underwriting guidelines routinely adjusted based on FX rate movements, wage growth, & interest rate changes

Conservative Debt to Income and Loan to Value ratios

-100% Mortgage insurance on >80% originated LTVs

No exotic products: low doc loans, self certification, interest only, teaser rates, etc.

Borrowers qualified based on their capability to handle a local currency loan, even though they are given a lower interest rate FX loan

FX loans fully hedged with cross currency swaps

2

3

4

5

6

Extensive process with high standards

69

137

FX mortgages

Adverse

Poland ($4.5B)

A+ 95%

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

Credit distribution

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

Stress test ’09 Outlook Base

$87Credit losses ($MM) $7 $26

HPI 4% 10% 20%

FX (from today) 15% 15% 30%

Unemployment 9.5% 10.5% 13%

Hungary ($1B)

A 24%

A+74%

B 2%

Credit distribution

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

AdverseStress test ’09 Outlook Base

$49Credit losses ($MM) $2 $22

HPI Flat 10% 20%

FX (from today) 5% 15% 25%

Unemployment 8.5% 9.4% 10.4%

06 08

2.3%

1.2%

06 08

0.7%

3.0%

30+ delinquency 30+ delinquency

• Strong credit quality• Conservative underwriting• Performing well

138

Stress testing approach

Robust process, oversight and testing

Assumptions

Forum and frequency:

• Operating plan & short range outlooks• Monthly portfolio reviews• Product / portfolio deep dives

Purpose and use:

• Risk management mitigation planning• Loss and capital adequacy planning• Portfolio expansion or exit

Oversight/Review:

• Banking Group CEO, CRO, CFO• GE Capital Investment Committee & Board

(selective reviews annually)

Macro

• Home prices• Unemployment• Currency rate movement• Interest rates

Portfolio

• Loan to values• Debt to income• Credit quality• Additional loss on sales (mortgage)

Key Drivers:

Key assumptions:

10-20% further decreasefrom today

Home price decline

150-470bps increasedepending on market

Unemployment

Another 15-30% declinefrom today

Currency movement

Approach

* Source: EIU, Internal Inputs

*

70

139

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

Stress test assumptions’09

outlook Base

HPIUnemployment

flat5.3%

(5)%7.3%

(20)%10%

Adverse

HPIUnemployment

(10)%6.4%

(10)%7.4%

(20)%7.9%

Unemployment 6.7% 9% 11%

HPIUnemployment

(4)%9.5%

(10)%10.5%

(20)%13%

Unemployment 1.4% 3.0% 5.0%

HPIUnemployment

flat8.5%

(10)%9.4%%

(20)%10.4%

V’09 Outlook ($MM)

$220-612

Stress test’09 Outlook

Assets ($B)

Credit Cost ($MM)

$6.9

0.9

0.6

13.4

1.2

$27.4

4.4

$128

87

63

192

113

$656

73

2.2%

7.1%

24.3%

2.8%

9.0%

3.6%

3.8%

30 +

Stress Test

$167

161

155

328

225

$1,268

232

$144

94

85

230

160

$876

163

Adverse($MM)

Base($MM)

$16-39

7-74

22-92

38-136

47-112

90-159

Czech

Russia

Latvia

Poland

Thailand

Hungary

Total

Czech

Russia

Latvia

Poland

Thailand

Hungary

Banks stress test results

140

Summary• Nearly 15 years experience in these geographies

� Started small … organic growth overtime

• High quality book … 82% A/B credits

� We underwrite to hold

• Strong delinquency & credit cost performance

� 30+: 5.72% in ’02 to 2.89% in ’08

� Low credit cost at 1.79% in ’08

• Rigorous stress testing to get ahead of problems

• Adjusted originations to limit volatility

� 4Q’08: Reduced Mortgage/Auto originations ~50%

� 2009: Mortgage/Auto originations volumes planned ~80%

� 2009: A/B credit originations only

71

141

Operationsupdate

142

Operating GE Capital

Tightly managing investment … 2009 YE ENI to $500B, $25B

Driving higher new business returns … new business ROI Feb YTD ~2.7%

Taking substantial cost out … 2009 SG&A 19%(ex-FX); Headcount 13% … 1Q on target to deliver annual savings rate

Disposing/running-down ‘red’ assets … closed $23B of dispositions, Feb YTD mortgage originations 88%

Driving results with rigorous operating processes

22

33

44

11

72

143

103

6564

356

80

357

'08 '09

2009 ending net investment

Dynamics

Core

Banks

($ in billions)

$525

ENI

V%

(5%)

–%

(2%)

(22%)Restructuring

$500

• Reduced volume across all portfolios

• RE, Mortgage and U.S. Consumer volume limited to commitments

• Limited BD activity assumed

– Santander/Interbanca deals executed Jan. ’09

– ANZ Mortgage $1.5B closed Feb. ’09

• Enhanced collections activities

• Capital bi-monthly reviews

– Volume pipeline

– Disposition activity

– Alternate funding

Outlook

144

2009 originations and collections

Originations

$97$84

+13B

� Assumed sales/securitizations reduced to $25B (19%) … $10B in 1Q

� Assumed R/E equity sales reduced to $3B (41%)

� Actual collections will pace new originations

• Planned volume:– Consumer: $125 - includes

revolving credit

– Commercial: $55

• Monthly pricing reviews

• Pricing floors with minimum target ROIs

• Platform sales potential upside to volume and/or collections

Sales/collections

Volume

$108

$96

+12B

Volume

1st half 2nd half

($ in billions)

Sales/collections

Sales

Collections

Platform ’09YTD ROI

Americas ~2.9%Asia ~2.5%Europe ~2.4%

Banking ~2.3%EFS ~8.4%GECAS ~3.8%

73

145

Recent deals in core segmentsDeal size Deal typeBusiness FinancialsCustomer benefit

Americas,Healthcare Financial Services

Senior loan for a medical device customer

$89MM ($22MM hold)

Fast turn-around thanks to GE’s Healthcare domain expertise

3.2% ROI

Americas,Corporate Lending

Working capital facility for a global chemical customer

$175MM Closed deal in 25 days 3.2% ROI

Strong customer value delivery at high returns for GE Capital

Americas,Restructuring Finance

Asset-backed DIP finance for a paper & packaging customer

$100MM 9.7% ROI Provided a wing-to-wing solution in a quick turn-around time

EnergyFinancial Services

49% limited partnership with an Oil & Gas producer

$150MM Maintained pipeline development program at reduced debt

11% ROI

GECAS Aircraft sale leaseback and spare parts for a leading airline

$290MM Provided liquidity 3.7% ROI

Global BankingSME Financing

Short-term, line for a CEE energy customer

$13MM Improve working capital management

11.7% ROI

146

25%19% ex-FX

SG&A cost($ in billions)

11

22

33

Focused approach

Organization structure and headcount re-sizing… ~$1.0B

�Geographic consolidation

Sizing and indirect spending … ~$1.0B

�Driving lower roof-tops

�Lease, outside services, legal, sourcing and consultant costs

Business exits … ~$700MM

�Closing/exiting underperforming/non-strategic platforms

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

1.3 1.2

5.6

5.3

4.0

7.1Direct

Indirect

$14.0

Operations

$10.5

2008 2009Outlook (ex-Acq.)

(C&B)

$2.7B

FX 0.8$11.3

74

147

Run-off/restructure redeployment(ENI - $ in billions)

Game plan

� Equipment Services

� Consumer mortgages

� ~15 Consumer/Commercial platforms

� Manage investment down ~$70B by 2012 … reinvest in core and funding model

� Primarily based on pay down/ term

� Opportunistically sell or swap

� Maximize value – many attractive platforms for banks longer term

$103

2008 2009 2010

Focused organization withstrong leader and clear charter

2011

~$80

~$60

~$35

$23B $20B $25B

~$70B investment

Reinvestin core

Pay downCP & LTD

2%-6% ROI Saferfunding model

Reduction:

Portfolio

OutlookOutlookOutlook

148

Recent dispositions – $23B ($ in billions)

Sales ENI Buyer Closed

Japan – Personal Loans $5.9 3Q’08

Office Imaging 0.5 2Q’08

Healthcare – Practice Solutions 0.8 4Q’08

Corporate Card 1.3 1Q’08

Australia Mortgage 1.5 1Q’09

Partnership Marketing Group 0.4 2Q’08

Austria 1.7 1Q’09

Finland 1.7 1Q’09

U.K. Unsecured 5.6 1Q’09

Germany 3.4 4Q’08

Region

Reduced assets + exited ‘challenged’ markets

75

149

‘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:

– Summary metrics of deal activity

– Active divestitures

– Immediate visibility into status of

all deals

Pipeline Red/Yellow Status Prime the Pipeline

– Complete overview of ‘red’ &

‘yellow’ assets

– Recap of most current strategic

assessment

– Rack & stack process

– Creative structuring

– Market feedback

– Preparing platforms for sale

GE Capital

150

Operating GE Capital

11

22

33

Rigorous operating mechanisms

Controlled Capital allocation

– ENI to $500B or less

– Turnover to higher returning volume

Delivering cost out

Driving asset reallocation

– ‘Red’ assets

– Lower leverage/higher returns… Mortgage

44

76

151

Financialupdate

152

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

Summary losses and impairments($ in billions)

Originaloutlook

Estimated Fedbase case

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

Estimated Fedadverse case

77

153

Stress summary credit costs vs. impairments

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-marketlease/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

Total

Original outlook

Creditcosts Impairments Total

EstimatedFed base case

Creditcosts Impairments Total

EstimatedFed adverse case

Creditcosts Impairments

($ in billions)

154

Estimated stress impact

Originaloutlook

Estimated Fedbase case

Estimated Fedadverse case

a) Includes capital contribution

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

($ in billions)

78

155

Estimated credit costs vs. estimated Fed 1 yr. ‘adverse’ loss assumptions

12/31 financingrec. net of reserves

2009outlookloss rate

EstimatedFed baseloss rate

EstimatedFed adverseloss rate

1 yearestimated Fed a)

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 10.60%

- 1st lien residential 3.90%

- Home Equity/2nd’s 6.15%

($ in billions)

None

None

None

GECC

a) Derived from Goldman Sachs Equity Researchb) C&I loans used for leveraged loans, “other leases/loans” for equipmentc) 2.63% including $1B management planning additional losses

156

Top bank 3σ stress

• Stressed $266B financing receivables in proprietary model

• 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

• Stressed 3 std. to 95% confidence

• Did not specifically stress assets beyond financing receivables

2009 outlook Losses & impairments

• 2008 back-testing of their results vs. actuals– 15% lower than modeled

3rd party 3σσσσstressed

GECCadversecase

$368BFinancing

receivables$14.5B

$13.7B

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

79

157

TCE/TA ratio a)

5.9% b)

GECC4Q’08

BAC4Q’08

WFC4Q’08

Citi4Q’08

JPM4Q’08

3.4%2.1%

1.1% 1.3%

Tier 1 common ratio

6.9% b)

GECC4Q’08

6.5%

4.4%3.1%

2.3%

TCE/Risk weighted assets a)

6.0% b)

5.4%

2.4%

1.2%

2.7%

RWA/ Total Assets 93%61% 51%84%72%

GECC4Q’08

GECC’09

AdverseStress

Key ratios – GECC

6.1% c) 7.1% c)

GECC’09

AdverseStress

6.2% c)

GECC’09

AdverseStress

4.9%5.8%

5.0%

BAC4Q’08

WFC4Q’08

Citi4Q’08

JPM4Q’08

BAC4Q’08

WFC4Q’08

Citi4Q’08

JPM4Q’08

• Strong tangible equity ratios even in adverse case

– Ratios improve vs. pro-forma 4Q’08 in adverse case due to balance sheet shrinkage

• Tier 1 common ratio strong in adverse case, well above 5.5% estimated regulatory target post stress

• Tangible equity reflects $5.3B unrealized loss on investment securities

c) Assumes no changes to FX and level of unrealized losses

b) Adjusted for equity infusion & CTA/OCI impact

a) TCE: Book equity less preferred equity, goodwill & intangibles; TA: Total assets less goodwill & intangibles

Source: Federal Reserve Y-9 and/or SEC 10-K filings for 4Q’08; No pro-forma adjustments across peer group

158

Financing receivables reserve methodology

Accounting model Methodology

FAS 5• Formulaic calculation for smaller

balance homogeneous loans• Estimate of incurred losses imbedded in

portfolio at a point in time– Not life losses or future losses not

yet incurred

FAS 114• Specific reserves on individual loans

deemed impaired

FAS 5• Formulaic calculation of losses

embedded in portfolio for whicha default or loss event has beenincurred but not yet observable

Consumer• Primarily roll rate models

• Write-off policy

– Closed-end installment – 120 days

– Revolving – 180 days

– Mortgage – 360 days

Commercial• FAS 114

– Specific credit or collection evaluation approach

• FAS 5

– Primarily static pool model applying historical loss curves

– PD x LGD history applied to loans individually determined non-impaired

4Q’08

$371B

Aviation/Energyloans

Real Estatedebt

Corporateloans

Franchise/Other

U.S. Consumer

Non-U.S.Mortgage

OtherConsumer

Mid-Marketlease/loan

Other

$226B

$145B

Each methodology incorporates current trends and conditions and other observable environmental factors

80

159

Non-earning reserve coverage

Commercial

4Q’08Non-earning

4Q’08Reserves

Exposure

Collateralvalue on

remainingexposure

Loans inrecovery/workout

Expect fullrecovery

100%recovery

($ in billions)

$3.2

$1.7

228%coverage

1.1

0.5

0.8

0.8

Estimatedloss exposure

160

Non-earning reserve coverage

Consumer

4Q’08Non-earning

4Q’08Mortgagereserves

EstimatedMI

Estimatedcollateral

value

Mortgage non-earnings

Non-mortgage

$3.2non-mortgage

reserves

($ in billions)

$4.7

231%coverage 133%

coverage

1.4

3.3

0.2 $0.4

1.8

0.3

Cure

1.0

Estimatedloss

exposure

81

161

U.S. Consumer

- 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% 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

- 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%

Financing receivables vs. top U.S. banks

GECC

ReservecoverageReceivables

%Portfolio

($ in billions, as of 4Q’08) Top banks average a)

ReservecoverageReceivables

%Portfolio

Top bankscoverageGECC assetcomposition

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

17%

29%

U.S. reserves comparable

162

GECS investment securities($ in billions)

Diversified, predominantly long term debt-based portfolio

12/31/08

ABS

RMBS

20

U.S.gov’t.

3Non-U.S.

gov’t./corp. Equity

1

$41B

U.S.corporate

1

2

4

CMBS 2

Retainedinterests

6

2

State & Muni

� Assets primarily support the run-off insurance operations long term liabilities and guaranteed investment contracts

� We do not have debt securities classified asFAS 115 HTM

� $3.1B insured by monolines – $2.2B FSA, MBIA,Ambac; $0.7B FGIC

� $8B asset-backed securities; $1.3B subprimeexposure ($1.1B wrapped by monolines) – no CDO’s

� U.S. corporate debt :�70+% investment grade�600 Companies, 60 >$100MM book value� Largest single exposures Fannie & Freddie $0.8B

in total, Wells Fargo $0.3B, rest $0.2B or less

82

163

Investments

• Compare fair value to book value; Is fair value <book value?

–68% of portfolio priced via market price or pricing services, other non-binding broker quotes, or internal models

Measure

Evaluate

Test

• Evaluate underlying issuer or cash flows

–Debt securities – analyze 8 credit-related and financial performance criteria

–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

• Compare subordination of our holding; compare to expected losses

Conclude

• Corporate reviews of all securities with unrealized loss >$5MM and>6 months underwater OR <6 months underwater and >20% decline, 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

Impairment review process

164

GECC Goodwill($ in billions)

FAS 142reporting units

Consumer $9.1

Commercial Lendingand Leasing 12.6

Real Estate 1.2

Aviation 0.2

Energy Financial Services 2.2

GECC $25.2

Goodwillas of 12/31/08 Methodology/frequency

• Tested for impairment annually and whenever events or circumstances make it more likely than not that fair value < book value

• If reporting unit fair value < book value, then must fair value each identified tangible and intangible asset. Goodwill impaired when implied fair value < goodwill book value

• Fair value of reporting units estimated using discounted cash flow method; corroborated with market multiples, when available

• Retesting reporting unit goodwill for impairment in 1Q’09

– No impairments indicated

– Continuing to monitor

83

165

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

GECC Associated companies($ in billions)

Investment Holding4Q’08

Investment a) Performance

View ofimpairment risk

as of 2/09

a) $18.7 GECS

166

Rigorous process for evaluating asset impairments

• All FAS115 assets reviewed quarterly for other than temporary impairment

• Multiple layers of review:

– Business unit

– Capital Finance

– Corporate accounting

– CAS/Auditors

• All equipment coming off lease evaluated for impairment

• All annual reviews updated if there is change in assumptionsor circumstance

(GECS $ in billions)

Accounting models utilized are prescribed

Rigorous process

<2% assets subject to mark-to-market

Equities-trading $0.8

FAS133 hedges –Retained interest 1.8(Consumer)

4Q’08 assets

CMBS $–

Assets held for sale 7.7

4Q’08 assets

-Money 3.1-Real Estate 0.3

-Other 4.3

Assets reviewed for impairment

4Q’08 assets FrequencyPrimary

acc’ting. model

Real estate owned $36.7 At least annually FAS144

Cost & equity method inv. 21.6 At least annually APB18/FAS115Retained interest 4.6 Quarterly FAS115

Debt securities 12.1 Quarterly FAS115($8B Trinity)

Equipment leased to others At least annually FAS144- Aircraft 32.3

- Equipment 27.3Goodwill/intangibles 29.0 At least annually FAS142/144

GECS Insurance securities 22.0 Quarterly FAS115

84

167

Summary

We follow the appropriate accounting guidelines

Our reserves are very comparable to banks in similar asset categories

We are a secured lender

We do not see significant impairment risk in goodwill or associated companies

We have sufficient capital even under adverse stress tests

22

33

44

11

55

168

GECC Summary+ Outlook

85

169

Primary questions … the answers� Commercial Real Estate

We will experience lower earnings through this cycle, but believe we have it covered in our own business framework

� 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

� 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

� 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

� Losses/Impairments/ReservesWe apply appropriate accounting policies. Our reserves are adequate for current economic conditions

� CapitalBased on stressed losses, capital appears adequate. Further options available if conditions worsen

170

GE Capital future

OtherEnergyGECAS

Consumer

Real Estate

Commercial

Assets $637B $400-450

ROI 1.3% 1.5-2%

Core75%

Verticals 15%

Today Future

Banks 10%

Why to like this business

• Deposit funding with potential for growth

• High margin new business

• Consolidation + partnership potential

• 25+ year track record

• Leverage GE brand/competencies/synergy

• Leasing and asset management intensive platforms advantaged vs. banks

• Direct origination to mid-market

• Core underwriting skills

• Fewer FinCos

• Bank consolidation … historically positive

Banks

Verticals

Core

86

171

2009 Summary

Environment much tougher – we think GECC is prepared

• Strong liquidity/limited refinancing risk today

Thoughtful view of stressed losses … working aggressively

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

Intense focus on risk management, work-out and restructuring

• Rigorous asset management/manage risk

GE Capital business model robust as the economy recovers

22

33

44

11

55

172

Closing

87

173

How to think about GE Capital riskEven under Fed adverse stress tests, GE Capital is approximately breakeven in 2009 and we should not need to inject additional capital

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

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%

Op plan Fed base Fed adverse

Cases

Base plan $10B ~$30B ~$40B

20082009/2010

Cumulative3 years

Potential losses & impairments

(a- includes ~$B equity infusion

22

11

174

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 responsibilityfor GECS liabilities

Current outlook does not require external capital

88

175

Company update

Energy Infrastructure ++ �

Tech. Infrastructure + �

NBCU 0/‒ —

Capital Finance $5 Profitable

Corporate Flat �

Dec. 16 1Q Comments

• Global growth

• Aviation on track• Healthcare pressured

• Advertising market weak• Tough comps

• Strong cost reductions • Tax credits

• C&I/pension pressure• Costs lower

176

� 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

� Have sufficient capital and alternatives to weather adverse economic conditions

� 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

� We expect GE Capital will be profitable in 1Q’09 and 2009

� We are committed to GE Capital

GE will come out of this cycle a stronger, more focused and competitively advantaged company

Key messages