GE 2010 second quarter performance July 16, 2010 – Financial results & company highlights "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: 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 conditions in the financial and credit markets on the availability and cost of General Electric Capital Corporation’s (GECC) funding and on our ability to reduce GECC’s asset levels 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 adequacy of our cash flow and earnings and other conditions which may affect our ability to pay our quarterly dividend at the planned level; the level of demand and financial performance of the major industries we serve, including, without limitation, air and rail transportation, energy generation, network television, real estate and healthcare; the impact of regulation and regulatory, investigative and legal proceedings and legal compliance risks, including the impact of financial services regulation; strategic actions, including acquisitions and dispositions and our success in integrating acquired businesses; and numerous other matters of national, regional and global scale, including those of a political, economic, business and competitive nature. These uncertainties may cause our actual future results to be materially different than those expressed in our forward-looking statements. We do not undertake to update our forward-looking statements.” “This document may also contain non-GAAP financial information. Management uses this information in its internal analysis of results and believes that this information may be informative to investors in gauging the quality of our financial performance, identifying trends in our results and providing meaningful period-to-period comparisons. For a reconciliation of non-GAAP measures presented in this document, see the accompanying supplemental information posted to the investor relations section of our website at www.ge.com.” “Effective January 1, 2010, we reorganized our segments. We have reclassified prior-period amounts to conform to the current-period’s presentation.” “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.” Overview Our environment continues to improve + Media buying + Losses decline + Rail loadings + Credit demand + RPMs + Equipment orders Still cautious in a few areas CRE working through cycle Demand for electricity rebounding after declines Pace of recovery Earnings growth resumes … EPS +15% + GE Capital losses have peaked … earnings are rebounding + Strong performance at NBCU, Healthcare, Consumer & Energy Execution is very strong + Increased margins + On track for $13-15B full year CFOA + $74B of cash Multiple positive capital allocation options are ahead Preliminary 2010 second quarter results/2 Safe & secure ($ in billions) Long-term debt funding $84–a) $70–b) Leverage–c) GECS commercial paper Target $20-25B ’11 pre-funding $72 $47 $46 $11 '09 4Q'08 '10 YTD (a- Includes $13B ’09 pre-funding (b- Includes $38B ’10 pre-funding 4Q'09 7.8% 8.1% 6.6 6.8 7.1 4Q'09 1Q'10 2Q'10 $71 $69 $67 GECC GECS equity–d) (d- Before non-controlling interest 5.5:1 5.2:1 5.5:1 5.3:1 4Q'09 1Q'10 2Q'10 (c- Net of cash & equivalents with hybrid debt as equity ex-non-controlling interests GECC ending net investment–f) Tier 1 common ratio GECS 2Q'10 Cash & backup bank lines ~2.5X CP 7.6% 5.8:1 GECS GECC '08 5.5:1 ~$(2.6B) Equity impact due to FX $538 $516–e) $(16) 1/1/10 1Q’10 Business reduction $(13) FX $487 2Q’10 (e- Includes FX ($6) from 1/1 (f- Ex. cash & equivalents Strong liquidity and capital positions Preliminary 2010 second quarter results/3 2Q orders +8% Backlog flat ex. FX ($ in billions) Strong backlog ($B) 2Q orders $19.2/8% Equipment $ Energy O&G Aviation Healthcare Transportation Total $3.7 1.3 1.6 2.8 0.7 $10.0 Services V% 19% 20 (8) 9 F 17% $158 $ V% $4.3 0.8 2.3 1.5 0.5 $9.2 -% (3) (5) 2 (1) (1)% $125 31 49 129 129 128 93 121 87 109 '05 '06 '07 '08 '09 1Q 2Q $110 Equip. 23 CSA 2010 Orders profile Equipment $11.4 $9.9 1Q $8.6 $9.1 2Q 3Q 2009 4Q $172 $175 $174 $172 46 45 44 51 Highlights Services $10.0 $8.9 1Q 2Q 2010 $8.7 $9.3 $9.1 Energy Infra. equipment +20% $10.6 $8.2 $9.2 Tech. Infra. equipment +14% … Healthcare improving, Transportation $0.4B N. America order Energy Infra. services flat … adjacency strength, 1Q 2Q 3Q 4Q 1Q 2Q Nuclear fuels down 2009 2010 Orders improving Preliminary 2010 second quarter results/4 Expanding margins Segment op. profit rate (%) 16.4% 2Q'09 Invest in R&D ∆ 17.1% Energy Tech. H&BS NBCU 2Q'10 Drivers Positive value gap Positive price 2% deflation Restructuring benefits 2.2 pts. (0.9) 2.3 1.1 +14% Target 30% more products Fund adjacencies Grow global position 1H’10 vs. 1H’09 Deep pipeline of leadership products GEnX 7FA GT 9F Growth GT Tier 4 Evo LED A19 Tech-X/Leap-X Qualibria/EMR Head Only 3T Power Haul Loco Smart Appliances Strong results while reinvesting for organic growth Preliminary 2010 second quarter results/5 Generating cash Consolidated cash $74B ($ in billions) 2Q YTD CFOA GE cash balance walk Total V% $7.0 $6.3 (10)% Industrial 2009 2010 CFOA 1.1X net income & depreciation Progress balance $1.5B down offset by $1.3B working capital improvements Beginning balance 1/1/10 $8.7 CFOA 6.3 Dividends (2.3) P&E (0.9) Dispositions 1.9 Prefunding of NBCU debt 2.3 Change in debt/FX/other (3.1) June 2010 $12.9 Continuing to build cash balance On track for $13-15B full-year CFOA Preliminary 2010 second quarter results/6 2Q’10 performance Second quarter consolidated results ($ in billions – except EPS) ($ in millions) Continuing operations 2Q’10 Revenues – Industrial sales – Financial Svcs. rev. Earnings–a) EPS–b) YTD CFOA – YTD Industrial CFOA $37.4 24.4 13.1 (4)% (6) (2) 3.3 0.30 14 15 6.3 6.3 (10) (10) 2Q’10 Tax rate – GE (ex. GECS) – GECS Revenues V% $ Energy Infra. $9,540 V% (9)% Segment profit $ $1,910 V% 3% Technology Infra. 9,061 (6) 1,554 H&BS 2,250 4 143 59 20,851 (6) 3,607 (2) 3,750 5 607 13 12,297 (3) 830 93 Industrial (ex. Media) (11) V pts. 21% 13 pts. 28 1 Lower benefit NBC Universal GE Capital (a- Attributable to GE (b- Earnings attributable to common shareowners $5,044 8% Earnings growth resumes Preliminary 2010 second quarter results/8 2Q items (Earnings per-share) Impact Corporate restructuring & other charges Gains Comments $(.01) Cost-structure improvements .01 Aviation, insurance settlement (.02) Grey Zone reserve increase Discontinued operations GE Money Japan Preliminary 2009 fourth quarter results/ 9 Japan consumer run-off Financial overview $0.5B $0.2B ~$0.7B remaining Claims update 790 708 $2.9B $2.2B ~85% claims settle 561 Avg. daily claims 510 441 $9.5K $9.1K Exposure/claim Initial indemnity at sale GE 1Q’10 reserve to date GE 2Q’10 reserve addition Total indemnity/ reserve to date GE acquired Lake in 1998 Japanese Supreme Court changed laws facilitating borrowers reclaiming historical interest above ~18% in 2006 Sold Lake to Shinsei in 2008 GE responsible for claims > indemnity $8.9K $9.1K $9.1K Jan. ’09 Apr. ’09 Aug. ’09 Dec. ’09 May ’10 Average daily claims ~(35)% vs. prior year … expected to continue to decelerate – Book in run-off – Loss mitigation efforts progressing June average daily claims ~(14)% vs. May … largest monthly since deal closed Trends improving but slower than expected … manageable Preliminary 2009 fourth quarter results/ 10 GE Capital highlights ($ in millions) 2Q dynamics 2Q’10 Revenue Pretax earnings Net income ENI (ex. cash) Assets $ V% $12,297 $741 $830 $487B $588B (3)% F 93% (6)% (6)% $830 net income 93% vs. ’09 … higher core income and lower losses offset by lower gains $487B ENI (ex. cash) down $29B VPQ driven by business reductions $16B & FX $13B $40B volume, up $7.1B VPQ ‒ CLL Americas up $2.4B, underwriting at ~2.6% ROI Key 2Q business results Assets ($B) $ V% Consumer Real Estate CLL Aviation EFS $162 77 202 49 20 ‒ Consumer up $3.5B, mainly NA retail Segment profit ($MM) $ V% (9)% $735 (9) (524) (10) 312 3 288 (11) 126 F U 28 1 94 $2.8B losses & impairments, $0.5B vs. 1Q ‒ Consumer losses down $0.4B, Real Estate unrealized loss estimate down to ~$6.3B Reserve coverage up 5 bps. to 2.66% ~$250 cost out ex. FX/acq. vs. ’09 Announced BAC disposition; planned ENI reduction of $8B IMA funding seems unlikely $830 NI … losses have peaked; earnings are rebounding Preliminary 2010 second quarter results/11 Financial Reform Bill 1 GE business model remains intact 2 Capital requirements should be within GE Capital earnings growth & asset reduction plans 3 Supervision will change … preparing for Fed oversight 4 Believe impact of Volcker rule will be limited 5 Impact from new late fee rules included in outlook … no impact from interchange cap 6 Expect limited impact from new rules on derivatives & securitization Outcome as expected & manageable Expect final rules to be determined over next 15 months Preliminary 2010 second quarter results/12 GE Capital portfolio quality Equipment Consumer 30+ delinquencies–a) 13.25% Delinquencies–a) 3.01% 2.78% 2.98% 2.86% Non-earning 2.45% 2.86% 2.81% 2.71% Non-earning 8.23% 8.72% 13.38% 13.26% 13.49% 14.20% 7.82% 7.79% 7.74% Mortgage Mortgage 3.07% 8.77% 8.82% 8.85% 8.72% 8.66% 4.75% 4.81% Total 2.50% 5.94% 5.96% 6.20% 5.94% 3Q'09 4Q'09 Drivers 1Q'10 2Q'10 2Q'09 3Q'09 5.52% 4Q'09 1Q'10 2Q'10 4.79% Total Non-mortgage 2.24% 2.35% 2Q'09 4.94% 4.75% 2Q'09 3Q'09 2.72% 2.72% 2.56% Non-mortgage 4Q'09 1Q'10 2Q'10 Drivers Delinquencies improving, total CLL non North America Retail delinquencies down 87 bps. to 6.29% earning lower, equipment non-earning – Low entry rates & better late-stage collections Restructured accounts removed from delinquency; included in non-earning until Mortgage delinquency $ , rate impacted by portfolio run-off account resolved – ANZ mortgage 107 bps., U.K. home lending 47 bps. from 1Q Real Estate delinquencies +43 bps. to 5.40%, non-earning $’s down Global banking delinquencies stable at 4.55% (a- Managed assets Improvement in most portfolios … continuing to monitor Preliminary 2010 second quarter results/13 GE Capital reserve coverage Reserve walk ($ in billions) Allowance for losses Comm’l. $(2.2)B Write-offs 2.0 Provisions (0.2 ) FX $(0.4)B Change $9.5 $9.1 3.7 3.9 $8.1 $6.6 2.5 3.6 Reserve coverage Non-earning coverage Reserves up $0.2 in 2Q driven by Real Estate … coverage rate up 18 bps. at 1.87% – $1.8B of CRE reserves … 73% of impaired loans are current – Non-earning down $(0.5)B vs. 1Q – Strong collateral should lead to ultimate loss significantly below non-earning Consumer 5.8 Consumer Commercial 4.1 4.5 2Q'09 4Q'09 1Q'10 1.81% 2.35% 2.61% 51% 61% 70% Coverage at 3.89%, down 14 bps. vs. 1Q – Non-earning down $(0.5)B vs. 1Q North America Retail – Coverage rate at 6.27% Mortgage – Coverage at 1.86% up 13 bps., reserve/non-earning at 21% … net 2Q'10 annual write-offs at 50 bps. – UKHL: 6 consecutive quarters of 2.66% positive recoveries … 117% of carrying value in 2Q‘10 72% 5.2 Reserves down mainly due to lower assets & FX Overall reserve coverage up Preliminary 2010 second quarter results/14 GE Capital strength ($ in billions) Originations improving Total on-book volume $32 1Q Outlook CLL pipeline $40 2Q $33 1Q $37 2Q Drivers • Strong performance in CLL Americas … 2Q volume up $2.4 (+75%) • Retail Finance volume +$3.2/+19% • New business ROIs at ~3% Revenue – Margins +/= Ahead on ENI New business ROI ~3% Losses Improving Expenses Continued execution Pretax + Better Earnings + Earnings (’10 vs. ’09) CLL ++ NA Retail ++ Global Banking + U.K. Mortgage Verticals CRE + + – Preliminary 2010 second quarter results/15 NBCU highlights ($ in millions) 2Q’10 Revenues Segment profit $ V% $3,750 $607 5% 13% 2nd quarter dynamics 1 Cable + Cable performance continues + Strength at USA, Bravo & Oxygen + CNBC +9% profit … continued lead in biz news 3 Film & Parks +/- Box-office performance improving … Get Him to the Greek & Despicable Me (3Q) + Parks attendance and per caps trending better… successful openings of Potter and Kong 2 Broadcast + Local ad market continues recovery … strong double digit sales growth +/- NBC ratings down VPY, but summer off to strong start, led by America’s Got Talent + ’10/’11 development well received + Upfront results better than expected + Leno continues as #1 in Late Night 4 Digital & Other = Regulatory reviews for new NBCU joint venture well underway … EU approval received + NBCU completed $4B debt offering + Solid growth in digital ad revenues + hulu growth continues Preliminary 2010 second quarter results/16 Technology Infrastructure highlights ($ in millions) 2Q dynamics 2Q’10 $ V% Revenues $9,061 (6)% Segment profit $1,554 (11)% Aviation • $3.9B orders, (6)% … equipment backlog $19B, CSA backlog $59B • Revenues (8)% … equipment (4)%, commercial & military service (11)% • Segment profit (5)% volume pressure offset by solid operations execution & transaction gain Key 2Q business results Revenues $ V% Aviation Healthcare Transportation $4,259 4,102 (8)% Healthcare • $4.3B orders, +6% … equipment +9%, service +2% Segment … equipment backlog +19% VPY to $3.8B profit • Revenues +3% … equipment 6%, services (1)%, $ V% electronics supply constraints • Segment profit +12% … Life Sciences & HCS $879 (5)% strength … segment profit % +1.2 pts. vs. PY 3 661 12 709 (34) 26 (89) Transportation • $1.2B orders, +84% … driven by N.A. locomotives • Lower volume & higher service costs; should begin to improve in 2H Business performing as expected Preliminary 2010 second quarter results/17 Energy Infrastructure highlights ($ in millions) 2Q’10 $ Revenues Segment profit V% $9,540 $1,910 (9)% 3% Key 2Q business results Revenues $ V% Energy $8,027 Oil & Gas 1,774 (8)% (9) Segment profit $ V% $1,661 292 3% 3 2Q dynamics Energy • $8B orders, +8% … equipment backlog $11.6B, CSA commitments $43.9B, +4% • Revenue (8)% on lower Gas & Wind shipments • Segment profit +3% … $0.3B value gap and productivity offsetting volume decline Oil & Gas • $2B orders, +10% … equipment backlog $6.5B, CSA backlog $3.7B, +2% • Revenues (9)% … equipment (7)%, service (11)% • Segment profit +3% … driven by positive value gap Delivered strong financial results in lower volume environment Preliminary 2010 second quarter results/18 Home & Business Solutions highlights ($ in millions) 2Q’10 Revenues Segment profit $ V% $2,250 $143 4% 59% 2nd quarter dynamics 1 Growth + Core U.S. appliance industry up + Continuing to see strength globally in Lighting + $48MM E*Star tax credits for energy efficient appliances + R&D +76% YTD 2 Operating drivers + Strong deflation and VCP offsetting price reduction for accretive CM rate + Base cost below ’09 levels + Executing Lighting restructuring plans Driving profitability & positioning for the future Preliminary 2010 second quarter results/19 Thoughts on Europe Investor questions GE update 1 Will GE Capital losses increase? • $134B of European assets, NI $183MM up 79% VPQ • ~80% of assets secured, losses down 56% VPY • <$300MM sovereign debt held–a) 2 Will currency translation negatively impact earnings? • GE has several manufacturing operations in Europe providing a natural hedge • Currency movements historically < $0.01/quarter • GE Capital equity impacted by Euro, but capital ratios still improved 3 Could austerity programs slow growth in Europe? • Potentially, but only 14% of Industrial revenues are in Western Europe 4 Does a lower Euro help European competitors? • Potentially, but many competitors have USD-based manufacturing operations (a- Portugal, Italy, Ireland, Greece, Spain Based on what we see today, European volatility should not materially impact GE earnings profile Preliminary 2010 second quarter results/20 2010 earnings “framework” 2010E Drivers ~Flat + NPI, service growth, lower cost, global – Excess capacity remains in certain sectors Media – + Cable, improved ad markets – Film remains challenged + Olympics in 1Q … growth remainder of year GE Capital + + GE Capital well positioned for upside … CRE challenged but valuation declines moderating Corporate Flat/– – Pension costs higher – Expect more restructuring in 2H $13-15B + Strong execution + Working capital improvements – Lower progress payments Industrial (ex. Media) CFOA Versus original 2010 framework: GE Capital better Healthcare continuing to improve FX … affects revenue, negligible on earnings Expect more restructuring in 2H Preliminary 2010 second quarter results/21 The GE mosaic 2011-2012 Headwinds Tailwinds GE Capital Increased regulation Higher tax rate Losses have peaked New business margins Competitive position CRE will extend cycle Energy High wind share, but U.S. uncertainty/cycle Services & global growth Policy actions NPI Gas strength Oil & Gas Potential project delays LNG growth Services & global growth O&G safeguards Aviation Multiple platform launches/mix Services & global growth Industry position/NPI Healthcare Customer profitability/ government budgets Transportation Excess capacity – U.S. Adjacencies & emerging markets NPI/Tier IV Home & Business Solutions Unemployment Housing starts Restructuring benefits NPI Energy tax credits, if extended Corporate Pension Capital allocation Restructuring Reform better understood Older installed base/NPI Procedure growth Emerging markets Positioned for attractive earnings growth Preliminary 2010 second quarter results/22 Future Attractive financial profile (EPS $/share) +++ ++ + $1.03 '09 '10E '11F '12F + Financial flexibility (Parent cash $B) ++ ~$25 $10 Value creation 1 Repositioned GE Capital will have significant profit growth & competitive advantage 2 Achieve superior growth & returns in Infrastructure over long term … growth as a process embedded in GE 3 Building enterprise value around process excellence 4 Capital allocation will create long- 1Q'10 4Q'10E '12F term shareholder value Preliminary 2010 second quarter results/23