Download Supplemental Data

GE Capital Investor Meeting
December 7, 2010
Supplemental Information
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GE Capital ending net investment
Tier 1 common ratio estimate – GECC & GECS
GECS delinquency
SG&A
Tier 1 ratio estimate – GECC & GECS
Debt/equity ratio – GECC & GECS
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Retail Finance summary
Real Estate ending net investment
GE Capital portfolio margins
Consumer portfolio margins
Commercial portfolio margins
“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 our funding and on our ability to reduce our asset levels as
planned; the impact of conditions in the housing market and unemployment rates on the level of commercial and consumer credit defaults; changes in Japanese consumer behavior that may
affect our estimates of liability for excess interest refund claims (Grey Zone); 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 level of demand and financial performance of the major industries we serve, including, without limitation, air transportation, 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.”
1
GE Capital ending net investment
($ in billions @ 1Q10 FX)
GECC assets (cont. ops.)
Subtract: non-debt liabilities
GECC ENI
Subtract: cash & equivalents
GE Capital ENI (ex. Cash)
Add/Subtract: foreign exchange
GE Capital ENI (ex. Cash & FX)
2009
1Q’10
2Q’10
3Q’10
2010E
$621.2
$617.2
$588.0
$594.8
~$558.9
48.2
42.0
39.8
40.0
~ 37.7
573.0
575.2
548.2
554.8
~ 521.2
63.7
59.6
61.2
65.4
~ 54.4
$509.4
$515.6
$487.0
$489.4
~$466.8
6.0
0.0
13.0
2.1
~ 13.2
$503.4
$515.6
$500.0
$491.5
~$480.0
2
Tier 1 common ratio estimate
–a)
($ in billions)
GECC
GECS
4Q’08
4Q’09
2Q’10
3Q’10
4Q’08
4Q’09
2Q’10
3Q’10
Shareowner’s equity-b)
$58.2
$73.7
$69.8
$70.5
$53.3
$70.8
$67.3
$66.9
Shareowner’s equity-b)
$58.2
$73.7
$69.8
$70.5
$53.3
$70.8
$67.3
$66.9
(28.4)
(32.0)
(29.5)
(30.1)
(29.0)
(32.4)
(29.9)
(30.1)
5.3
2.5
2.0
2.2
6.2
2.2
1.0
2.1
- Other
additions/(deductions)
(0.8)
(1.1)
(1.1)
(0.5)
(0.8)
(1.1)
(1.1)
(0.5)
Tier 1 common
34.3
43.1
41.2
42.0
29.7
39.5
37.3
38.4
Estimated risk weighted
assets
604.3
569.1
508.4
510.0
632.9
602.1
525.3
527.8
Tier 1 common ratio
5.7%
7.6%
8.1%
8.2%
4.7%
6.6%
7.1%
7.3%
As reported
- Intang. & GW
- Unr. G/(L) on invt. & hdg
(a- Estimated based on SCAP requirements
(b- Total equity ex. noncontrolling interests
3
GECS delinquency-a)
3Q’10-b)
2Q’10
1Q’10
4Q’09
3Q’09
On-book delinquency
8.34%
8.66%
8.72%
9.13%
9.15%
Off-book delinquency
-c)
-c)
-c)
7.20
6.85
Managed delinquency
8.34
8.66
8.72
8.85
8.82
On-book delinquency
5.74%
5.40%
4.97%
4.33%
4.19%
Off-book delinquency
-c)
-c)
-c)
3.04
3.04
Managed delinquency
5.74
5.40
4.97
4.22
4.09
On-book delinquency
2.26%
2.49%
2.77%
2.91%
3.09%
Off-book delinquency
2.30
2.58
2.15
2.25
2.51
Managed delinquency
2.26
2.50
2.71
2.81
3.01
Consumer
Real Estate
Equipment Financing
a)Excludes
loans purchased at a discount (unless they have deteriorated past acquisition)
to update
c)Not applicable
b)Subject
4
SG&A
($ in billions)
SG&A
Less: effect of Penske Truck Leasing,
acquisitions and corporate
assessments
Adjusted SG&A
4Q’08
4Q’09
4Q’10E
$15.7
$11.8
~$10.8
(1.7)
(0.9)
~(0.7)
$14.0
$10.9
~$10.1
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Tier 1 ratio estimate
–a)
($ in billions)
GECC
GECS
4Q’08
4Q’09
3Q’10
4Q’08
4Q’09
3Q’10
Shareowner’s equity-b)
$58.2
$73.7
$70.5
$53.3
$70.8
$66.9
Shareowner’s equity-b)
$58.2
$73.7
$70.5
$53.3
$70.8
$66.9
(28.4)
(32.0)
(30.1)
(29.0)
(32.4)
(30.1)
5.3
2.5
2.2
6.2
2.2
2.1
(0.8)
(1.1)
(0.5)
(0.8)
(1.1)
(0.5)
2.4
2.2
1.1
2.3
2.0
1.1
-
-
3.0
-
-
3.0
36.7
45.4
46.1
31.9
41.5
42.5
Estimated risk weighted assets
604.3
569.1
510.0
632.9
602.1
527.8
Tier 1 ratio
6.1%
8.0%
9.0%
5.0%
6.9%
8.0%
As reported
- Intang. & GW
- Unr. G/(L) on invt. & hdg
- Other additions/(deductions)
+ Minority interest
+ Tier 1 qualifying hybrids
Tier 1
(a- Estimated based on U.S. Federal Reserve Basel 1 guidelines
(b- Total equity ex. noncontrolling interests
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Debt/equity ratio
($ in billions)
GECC
GECS
4Q’08
4Q’09
3Q’10
4Q’08
4Q’09
3Q’10
$510.4
$497.5
$481.4
$514.6
$500.3
$486.5
$58.2
$73.7
$70.5
$53.3
$70.8
$66.9
8.8
6.7
6.8
9.7
7.1
7.3
$510.4
$497.5
$481.4
$514.6
$500.3
$486.5
(7.7)
(7.7)
(7.7)
(7.7)
(7.7)
(7.7)
(36.4)
(63.7)
(65.4)
(37.5)
(64.4)
(66.0)
466.3
426.1
408.3
469.4
428.2
412.8
Shareowner’s equity –a)
58.2
73.7
70.5
53.3
70.8
66.9
Add: hybrids to equity
7.7
7.7
7.7
7.7
7.7
7.7
Adjusted book equity
65.9
81.4
78.2
61.0
78.5
74.6
7.1
5.2
5.2
7.7
5.5
5.5
As reported
Debt
Shareowner’s equity-a)
Book leverage (debt/equity)
Debt
Subtract: hybrids from debt
Subtract: cash & equiv. from debt
Adjusted book debt
Adjusted leverage
(a- Total equity ex. noncontrolling interests
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Retail Finance summary
($ in millions)
TY’08
TY’09
3Q’10YTD
Retail Finance net income
$661
$555
$1,014
Gain on sale
(260)
-
-
(30)
102
-
Retail Finance net income, ex. Securitization
$371
$657
$1,014
($ in millions)
TY’08
TY’09
3Q’10YTD
$23,607
$20,159
$40,688
25,287
23,985
-
$48,894
$44,144
$40,688
TY’08
TY’09
3Q’10YTD
Retail Finance return on investment
2.1%
1.9%
3.3%
Securitization / Gain impact
(1.3)
(0.4)
Retail Finance return on investment, ex. Securitization
0.8%
1.5%
3.3%
($ in billions)
TY’08
TY’09
3Q’10YTD
Retail Finance losses
$2.9
$3.2
$2.4
Securitization impact
1.6
1.3
-
$4.5
$4.5
$2.4
Securitization impact
Retail Finance on-book receivables
Securitization impact (off-book receivables)
Retail Finance Served Receivables
Retail Finance losses, ex. securitization
-
8
Real Estate ending net investment
($ in billions)
Real Estate assets (cont. ops.)
Subtract: non-debt liabilities
Real Estate ENI
Add: Off-book ENI (FAS167)
Adjusted Real Estate ENI
2Q’08
4Q’08
4Q’09
3Q’10
$90.6
$85.3
$81.5
$75.2
(3.7)
(3.2)
(1.9)
(0.8)
86.9
82.1
79.6
74.4
5.8
5.5
4.6
-
$92.7
$87.5
$84.2
$74.4
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GE Capital portfolio margins
2006
2007
2008
13.7%
13.4%
11.8%
GE Capital Interest expense
4.1
4.4
GE Capital portfolio
margins/net revenue
9.6
RO/HQ/GECC Corp
2009
2010E
8.9%
~ 8.5%
4.3
3.1
~ 2.8
9.0
7.5
5.8
~ 5.7
(0.7)
(0.6)
(0.3)
0.7
~1.1
GE Capital net revenue ex.
RO/HQ/GECC Corp
8.9
8.3
7.1
6.5
~6.8
Less: Depreciation, amortization
costs of goods sold, gains
and maintenance
(3.1)
(3.0)
(2.3)
(1.9)
~(1.8)
Adjusted GE Capital
portfolio margins
5.7%
5.4%
4.8%
4.6%
~5.0%
GE Capital gross revenue
10
Consumer portfolio margins
2006
2007
2008
2009
2010E
13.0%
13.6%
12.6%
11.6%
~11.7%
Consumer interest expense
4.4
4.9
5.1
3.7
~ 3.3
Consumer portfolio
margins/net revenue
8.7
8.7
7.6
7.9
~ 8.4
RO/HQ
0.6
1.2
1.5
1.8
~ 1.6
Consumer net revenue ex.
RO/HQ
9.3
9.9
9.1
9.7
~10.1
Less: Depreciation, amortization
costs of goods sold, gains
and maintenance
0.0
(0.5)
(0.1)
(0.1)
~ 0.0
Adjusted Consumer
portfolio margins
9.3%
9.4%
9.0%
9.6%
~10.1%
Consumer gross revenue
11
Commercial portfolio margins
2006
2007
2008
14.6%
13.6%
11.7%
4.2
4.5
Commercial portfolio
margins/net revenue
10.4
RO/HQ
2009
2010E
9.2%
~ 9.0%
4.2
3.4
~ 3.2
9.1
7.5
5.8
~ 5.7
(1.8)
(1.6)
(1.2)
(0.5)
~(0.2)
Commercial net revenue ex.
RO/HQ
8.6
7.5
6.3
5.3
~5.5
Less: Depreciation, amortization
costs of goods sold, gains
and maintenance
(4.6)
(4.2)
(3.3)
(2.6)
~(2.6)
Adjusted Commercial
portfolio margins
4.0%
3.4%
2.9%
2.7%
~3.0%
Commercial gross revenue
Commercial interest expense
12
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