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GE 2009 third quarter
performance
October 16, 2009
– 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: 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 as
planned; the impact of conditions in the housing market and unemployment rates on the level of commercial and consumer credit defaults; our ability to maintain our current credit rating
and the impact on our funding costs and competitive position if we do not do so; the soundness of other financial institutions with which GE Capital does business; the adequacy of our cash
flow and earnings and other conditions which may affect our ability to maintain our quarterly dividend at the current level; the level of demand and financial performance of the major
industries we serve, including, without limitation, air and rail transportation, energy generation, network television, real estate and healthcare; the impact of regulation and regulatory,
investigative and legal proceedings and legal compliance risks, including the impact of proposed financial services regulation; strategic actions, including acquisitions and dispositions and
our success in integrating acquired businesses; and numerous other matters of national, regional and global scale, including those of a political, economic, business and competitive nature.
These uncertainties may cause our actual future results to be materially different than those expressed in our forward-looking statements. We do not undertake to update our forward-
looking statements.”

“This document may also contain non-GAAP financial information. Management uses this information in its internal analysis of results and believes that this information may be informative
to investors in gauging the quality of our financial performance, identifying trends in our results and providing meaningful period-to-period comparisons. For a reconciliation of non-GAAP
measures presented in this document, see the accompanying supplemental information posted to the investor relations section of our website at www.ge.com.”

“In this document, “GE” refers to the Industrial businesses of the Company including GECS on an equity basis. “GE (ex. GECS)” and/or “Industrial” refer to GE excluding Financial Services.”
Overview
 Global environment improving but expecting gradual recovery

 3Q’09 earnings of $2.5B … $.22 EPS, (51)% driven by Capital Finance
 • Industrial segment profit +4% … Infrastructure, Media, C&I
 • Capital Finance $263MM, (87)% … favorable tax credits as expected
 • Aggressive cost out … $.05 EPS restructuring and other charges in 3Q

 Executing through the recession
 • Cash flow of $4.4B in 3Q’09 & $11.5B, +1% YTD … positioned for $15B+ total year
 • $61B consolidated cash … parent cash increased vs. 2Q
 • Strong industrial margin expansion … 16.3%, + 260 bps. versus 3Q’08
 • Infrastructure orders (18)%, but backlog increased to record high of $174B
 • Services continue to remain strong
 • GE Capital Finance reserves +$0.8B in 3Q, coverage at 2.08%

 Continuing to invest in the long term
 • Tracking to higher ’09 R&D spend vs. ’08
 • Broke ground on GE Energy Technology Center in Russia
 • ScanWind acquisition expanding offshore wind capability
                                                               Preliminary 2009 third quarter results/2
Environment
   Big factors            Status

Dramatic financial        “Better”     + Credit markets improving
crisis                                 + Pricing attractive
                                       – Losses still remain high


Difficult recession     “Bottoming”    +   Some signs of life
                                       +   Delinquencies leveling off
                                       –   Excess capacity, CAPEX constrained
                                       –   Unemployment


Global growth            “Available”   + Emerging markets relative strength




                      Environment improved in 3Q’09
                                                            Preliminary 2009 third quarter results/3
Executing through the recession
     Stabilize             Outperforming             Strengthen the
  Capital Finance      +        in a           +     balance sheet
                           tough economy

  Funding well ahead       Protect backlog         Strong cash generation
  of plan
                           Services strength       Maximize financial
  Capital ratios                                   flexibility
  strong & improving       Global orders
  Strong margins on        Lower cost
  new originations
                           Expanding margins
  Working through
  Real Estate cycle

Status
  Much improved            As expected               Much improved
                                                      Preliminary 2009 third quarter results/4
Capital Finance safe & secure
($ in billions)
    Long-term debt funding                GECS commercial paper                                        Leverage–b)
     $84                                                                                       7.7:1
                                               $72                                  GECS                      5.9:1             5.7:1
                    $45      $35-40                        $50          $50
                                                                                    GECC 7.1:1                5.6:1             5.4:1
                               35–a)

      '08            '09       '10F            4Q'08      2Q'09       3Q'09                   4Q'08           2Q'09            3Q'09
  (a- 2009 YTD as of 10/5                                                                  (b- net of cash & equivalents with hybrid
                                              Cash & backup bank lines >2X CP              debt as equity ex. noncontrolling interests

               Tier 1 common ratio                                         Ending net investment–c)
                            7.4%        7.5%                        $525
               5.7%                                                                 $501
                                                                                                   $485
   GECC                                                                                                           $475-485
   GECS         4.7         6.4         6.5


              4Q'08         2Q'09      3Q'09                        4Q'08           2Q'09          3Q'09            4Q'09E
   GECS         $53          $68        $71                         (c- Capital Finance excluding effects of FX
   equity
                                    Strong execution through the crisis …
                                         ahead of plan on all metrics                               Preliminary 2009 third quarter results/5
Backlog growing
($ in billions)
  Orders $18.4/(18)% 3Q VPY/(18)% YTD                                  Protecting backlog ($B)
                    Equipment          Services                                     $172 $171 $169 $174
                                                                             $158
                     $    V%           $     V%                       $125           51       50         48        47
                                                              $110            49
Energy              $2.6    (50)%     $3.9         9%                  31
                                                        Equip. 23
O&G                  1.3      6        0.8        (5)
Aviation             1.9    (37)       2.6         1                                121      121        122       127
                                                        CSA      87    93    109
Healthcare           2.4    (13)       1.5        (1)
Transportation       0.2    (23)       0.5      (43)
Ent. Solutions       0.9    (24)         –         –            '05   '06    '07    '08       1Q        2Q        3Q
Total               $9.2    (32)%     $9.2         3%
                                                                                                       2009
                 Equipment orders                                             Highlights
        $14.4 $13.4 $13.2                                     Equipment orders +$0.7B vs. 2Q’09 …
$12.9                                                         continuing to win global orders
                             $9.9                  +
                                    $8.4   $9.2               Service orders +3% driven by strength in
                                                              Energy with Smart Grid
                                                              Backlog at all-time high: equipment steady &
                                                              continuing to acquire service commitments
 1Q      2Q    3Q    4Q      1Q     2Q     3Q     4QE         – $7.9B new CSA additions 3Q’09
          2008                         2009
                 Equipment orders improving … up $741MM vs. 2Q’09
                                                                                     Preliminary 2009 third quarter results/6
Industrial revenues
($ in billions)
        Key initiatives from 12/08                    5   Services revenue solid
 1 Protect backlog: up YTD, +$4B vs. 2Q                                                      +
   – Cancellations remain low: $0.2B in 3Q,                           $35
     <$0.8B YTD                                           $32

 2 Growth in emerging markets
   – China +26%, India +12%, E. Europe +18%

 3 Launching more new products … R&D up
                                                          '07         '08                  '09E
   + Extending product lines
   + Big initiatives: ecomagination,           Margins     +           +                     +
                                               CSA B/L    $109        $121                  $127
     healthymagination
   + Key product launches                      + 9 new Aviation CSAs $5.4B, 7 new Energy
   + Growing adjacencies                         CSAs $1.7B
                                               + Healthcare emerging market strength …
 4 Stimulus … only beginning, expect ramp up     China +19%, India +8%
   in 4Q’09/2010                               + O&G CSA backlog +7% YTD
   + Wind        + Smart Grid                  + Transportation Marine & Stationary up
   + HCIT        + Global Rail                   double digits

                      Total backlog at $174B … record high
                                                                     Preliminary 2009 third quarter results/7
Lowering cost
($ in billions – pretax)
                                         Aggressive base              Restructuring & other
    3Q margin improvement                 cost reduction             charges - pipeline ’09/’10

            16.3%                      $44                                $2B+
                              ∆ bps.             $40
  13.7%                                                       –
                     Energy    100
                     Tech       10                                      $0.4B 4Q          ~2 years
                                                                        approved
                     NBCU       90
                                                                           $0.9B
                     C&I        60                                         3Q’09


  3Q'08      3Q'09                     '08        '09E       '10F       Projects Payback
     CM expansion of 4.6 pts.          Significant restructuring &    3Q projects
     ‒ Positive value gap … price      other charges to date          ‒ Incandescent lighting
       expansion $0.5B                 ‒ ’07 … $2.0B                  ‒ Transportation resizing
     Service margins +4 pts.           ‒ ’08 … $1.8B                  ‒ Optimizing services footprint
     No repeat of Olympics +1 pt.      ‒ ’09 YTD … $1.9B              $0.7B+ being reviewed for
                                       3Q base costs 10%              potential 4Q’09/’10 execution
  On track for total year growth

          Continuing to restructure … positioning for reset economy
                                                                         Preliminary 2009 third quarter results/8
Generating cash
($ in billions)

                   3Q YTD CFOA                  GE cash balance walk                 Consolidated
                                                                                      cash $61B

                  $13.6               V%
                                                                                          Total
    GECS                   $11.5     (16)%
  dividend         2.3                       Beginning balance 1/1/09                     $12.1
                                             CFOA                                           11.5
  Industrial       11.3               1%     Dividends                                        (7.8)
                                             P&E                                              (1.8)
                                             GECS capital contribution                        (9.5)
                  2008      2009
                                             Acquisitions/dispositions                         0.5
   No GECS dividend, Industrial cash flow
   higher year over year                     Change in debt/other                              0.2
   Focus on working capital driving strong   September 2009                                 $5.2
   cash generation

                          CFOA on track for $15B+ total year
                                                                  Preliminary 2009 third quarter results/9
3Q’09 performance
Third quarter consolidated results
($ in billions – except EPS)                                ($ in millions)

Continuing operations                                                                                       Segment
                                 3Q’09             V%                            Revenues                    profit
                                                                                 $        V%                 $          V%
 Revenues                        $37.8             (20)%
 – Industrial sales               25.1             (13)     Energy Infra.       $8,917     (9)%        $1,582            11%
 – Financial Svcs. rev.           12.7             (31)
 Earnings–a)                         2.5           (45)     Technology Infra.   10,209    (11)           1,748            (8)
 EPS–b)                              .22           (51)
                                                            Infrastructure      19,126    (10)           3,330             –
 CFOA YTD                          11.5            (16)
 – Industrial CFOA                 11.5              1      NBC Universal        4,079    (20)              732          13
                                                   3Q’09
                                   3Q’09            YTD     Capital Finance     12,161    (30)              263         (87)

 Tax rate                            (25)%           (7)%
                                                            C&I                  2,438    (18)              117            F
 – GE (ex. GECS)                      22            26
 – GECS                             114            210
 (a- attributable to GE
                                                                                                       $4,442           (26)%
 (b- earnings attributable to common shareowners


                                                                                         Preliminary 2009 third quarter results/11
3Q items
(Earnings per-share)

                            Impact                Comments

Corporate restructuring &   $(.05)      Cost structure improvements
other charges                           Footprint reductions & organization
                                        realignment

Marks & impairments          (.06)      Real Estate, Treasury marks & other
                                        impairments


NBCU items                    .01       AETN gain less impairments & other
                                        charges in NBCU
                            $(.10)


                Continued restructuring improves cost base
                                                          Preliminary 2009 first quarter results/ 12
Capital Finance highlights
($ in millions)                                              Update from July 28
  3Q’09                    $            V%       Funding
                                                 + ’09 ENI reduction targets already achieved
 Revenues                $12,161        (30)%    + GECC funded >90% of 2010 plan
                                                 – Negative carry cost ~$0.7B in ’09
 Segment profit            $263         (87)%
 Assets                    $551B        (11)%    Originations
                                                 + $23B of commercial originations YTD
        Key 3Q business results                  + Underwriting business at attractive returns
                    Assets       Segment         Losses
                     ($B)       profit ($MM)     + Slightly better than Fed base case
                   $      V%     $       V%      – Real Estate continues to be difficult

Consumer          $180   (16)% $434      (45)%   Reserve coverage
Real Estate         84     (6)  (538)      U     + Reserves $7.3B, up $0.8B from 2Q
                                                 + Coverage 2.08%, up 26 bps.
CLL                214   (14)    135     (65)
GECAS               50      1    191     (33)    Cost out
EFS                 23      3     41     (87)    + Delivered $2.6B cost out YTD
     Executing well in difficult environment
     $2B Capital Finance earnings YTD
     Committed to GE Capital, strengthening fixed charge coverage agreement
     Next Capital Finance analyst meeting December 8
                                                                         Preliminary 2009 first quarter results/ 13
Capital Finance portfolio quality
                Equipment                                                           Consumer
                                                        30+ delinquency–a)                                 Non-earners

                                                                                    13.38%
                                                                           13.23%                                           7.79% 7.78%
                                                                  11.80%
                                                                                    Mortgage                      6.81%
                                                         10.56%                                                                   Mortgage
                      2.84%             3.01%   9.22%                                                   5.47%
                                                                              8.80%
 Delinquencies–a)               2.78%                             8.20% 8.73%                  4.59%                        4.71%
                                                                                                                                       4.78%
                                                         7.43%
                                                6.38%                                Total                        4.19%
        2.17%                           2.86%                                                           3.33%                       Total
                                2.45%                                                          2.74%
1.61%                   2.27%
                                                         5.62% 6.02% 5.92% 5.95%
            1.68%      Non-earners              4.70%
 1.46%                                                                 Non-mortgage
                                                                                                                  2.16% 2.21% 2.33%
                                                                                                        1.75%           Non-mortgage
                                                                                               1.41%

 3Q'08     4Q'08      1Q'09     2Q'09   3Q'09   3Q'08    4Q'08 1Q'09       2Q'09 3Q'09         3Q'08    4Q'08      1Q'09     2Q'09     3Q'09

                      Drivers                                                          Drivers
   Delinquency up 23 bps., driven by              North America delinquencies up 31 bps. to 7.27%
   Americas portfolio partially offset by         ‒ Delinquency up from seasonal low but rate of increase slowing
   Asia & Europe                                  U.K. home lending down 9 bps. from 2Q
   Non-earners +41 bps. vs. 2Q’09                 ‒ Continued improvement in HPI (3 consecutive months)
   ‒ Driven by senior secured loans …             ‒ Net gains on REO sales vs. marks in all 3 quarters
     well collateralized                          Global banking delinquencies flat … strong collections efforts
 (a- managed assets

                      Tough environment … but some signs of stabilization
                                                                                                       Preliminary 2009 third quarter results/14
Capital Finance reserve coverage
($ in billions)

                                     $7.3               Commercial
                             $6.6
Allowance                                    Reserves increased by $0.6B in 3Q’09 …
                     $5.7             3.1    coverage rate to 1.43%
for losses   $5.3
                              2.5            – Strong collateral will lead to ultimate
                      2.0                      loss significantly below non-earners
Comm’l.       1.7

                                                         Consumer
                              4.1     4.2
Consumer     3.6      3.7                    Coverage at 3.11%
                                             U.S. Card & Sales Finance
                                             – Coverage rate up 45 bps. to 7.02%
                                             – Reserves/non-earnings 209%
                                             Mortgage
             4Q'08   1Q'09   2Q'09   3Q'09
                                             – Coverage rate up 26 bps. to 1.59%
Reserve                                      – Reserves/non-earnings 20%
coverage     1.42%   1.59%   1.82%   2.08%   – U.K. REO sales realization at 115%

             Reserve coverage +$757MM, +26 bps. vs. prior quarter
                                                                Preliminary 2009 third quarter results/15
Capital Finance non-earning exposure walk
($ in billions)
                          Commercial                                                                             Consumer
    $7.2         (1.5)

                                                                                  $6.5        (1.8)


                            (1.8)

                 100%
               recovery
                                                                                                          4.8        (1.4)

                                                                                          Non-
                                                                      189%
                                          (2.3)                      coverage            mortgage

                                                                                           $3.3
                           Loans in                                                                                            (2.8)
                                                                                           non-
                          recovery/                                   $3.1               mortgage
                           workout                                                                                   Cure
                                                                                         reserves
                          Expect full
                          recovery/                                                        186%
                            cure                                                          coverage                                                             206%
                                                                                                                                                              coverage
                                                         1.6

                                        Collateral                                                                                                             $1.0
                                         value on
                                        remaining                                                                                         (0.1)       0.5
                                         exposure



    3Q’09                                              Estimated      3Q’09        3Q’09               Mortgage              Estimated Estimated Estimated    3Q’09
 non-earning                                         loss exposure              non-earning           non-earnings           collateral    MI       loss     mortgage
                                                                     reserves
                                                                                                                               value             exposure    reserves
2Q’09 coverage                                                         173%                                                                                     173%



                                                                                                                             Preliminary 2009 third quarter results/16
Commercial Real Estate
        Debt portfolio quality                                      Equity operating metrics

                                       4.03%      4.19%
                    Delinquencies                                            Original
                          2.24%                           Metrics ($MM)      outlook 3Q YTD                 Status
                                       2.88%      2.90%
        0.62%
                1.15%
                                                            NOI               $1,104        $1,199
0.28%                               Non-earners             (pre-tax)
                          1.22%

        0.19%   0.41%
0.18%
                                                            Gains              $124              $88
2Q'08   3Q'08   4Q'08     1Q'09        2Q'09      3Q'09     (net)



  Non-earners steady … $1.3B 2Q and 3Q                       Impairments       $291            $467
                                                            (pre-tax)
  Specific reserves $562MM 3Q primarily due
  to revaluation review                                     Occupancy            80%              79%
  – 77% of impaired loans with specific reserves
    are current
                                                            Leasing             18.0            19.1
  Reserve coverage increased from 1.2% to 2.3%              (MM sq. ft.)




                              Risks understood and manageable
                                                                                 Preliminary 2009 third quarter results/17
NBCU highlights
($ in millions)


          3Q’09                    $          V%            3Q’09 reported                            13%
                                                            AETN less 3Q’09 impairments              (22)
          Revenues             $4,079        (20)%           & other charges
          Segment profit        $732          13%           Adjusted                                   (9)%

                                3rd quarter dynamics

1 Cable                                            3 Film & Parks
  + Cable strength continues … USA rated #1,            - Under performance at the box office …
    delivered more viewers in 3Q than any cable             Inglourious Basterds only success
    network has in any quarter                           - Tough comps versus last year’s Mamma Mia
  + Syfy +30%, CNBC +9%, Bravo +4%                      +/- Continued weakness in Parks attendance,
                                                            offset by strong cost control

2 Broadcast                                         4 Digital & Other
 +/- Prime ratings as expected, scatter above upfront   + hulu continues strong growth
  + Successful launch of The Jay Leno Show              + Gain on AETN partially offset by impairments
  + Conan & Fallon win 3Q Late Night in key demo          & other charges
  + Local markets showing signs of improvement          + Continued costs/workforce reduction

                           Performance in line with industry
                                                                             Preliminary 2009 third quarter results/18
Technology Infrastructure highlights
($ in millions)
                                                                      3Q dynamics
 3Q’09                        $            V%       Aviation
                                                    • $4.5B orders, (19)% … equipment backlog $21B,
 Revenues                  $10,209         (11)%      CSA backlog $59B
 Segment profit             $1,748         (8)%     • Revenues (6)% … equipment (10)%, commercial &
                                                      military service (2)%
                                                    • Segment profit +16% … favorable price, cost
           Key 3Q business results                    productivity offset volume pressures

                                   Segment       Healthcare
                   Revenues          profit      • $3.9B orders, (9)% … equipment backlog $3.4B,
                    $    V%         $      V%      service orders (1)%
                                                 • Revenues (9)% … equipment (11)%, services (6)%
Aviation          $4,542    (6)%     970     16%
                                                 • Segment profit (20)% … U.S. market remains tough
Healthcare         3,801    (9)      508     (20)
                                                    Transportation
Transportation      970 (23)         177     (31)
                                                    • $0.6B orders, (38)% … challenging U.S. environment
                                                    • Equipment revenues (32)%, services revenues (14)%

                      GE operating well in a tough environment
                                                                              Preliminary 2009 third quarter results/19
Energy Infrastructure highlights
($ in millions)

 3Q’09                       $            V%                      3Q dynamics

 Revenues                $8,917           (9)%   Energy
 Segment profit          $1,582           11%    • $6.5B orders, (25)% … expect Kuwait in 4Q
                                                 • Revenues (11)% … Thermal (30)%, Water (16)%,
                                                   Wind & Aero flat … Energy Services +10%
            Key 3Q business results              • Segment profit +11% … $0.4B price + deflation
                                   Segment
                  Revenues           profit
                   $    V%         $       V%    Oil & Gas
Energy        $7,128   (11)%     $1,273    11%   • $2.1B orders, +1% … equipment backlog $6.9B,
                                                   CSA backlog $3.8B
Oil & Gas      1,953    3          338     11    • Revenues +3% … equipment +7%, service (2)%
                                                 • Segment profit +11% … value gap & base cost
                                                   control strong drivers


               Strong operating leverage despite fewer shipments
                                                                         Preliminary 2009 third quarter results/20
2009 company update
                     EPG        3Q YTD

Energy                ++        +14%
                                                     + Solid service position
Infrastructure
                                         3%          ‒ Lower equipment sales
Technology             +          (5)         (3)%   + Strong cost out/margins
Infrastructure
                                                     + Global stimulus
NBCU                   –         (27)

Capital Finance    Profitable   $2.0B                + Funding solid; originations strong
                                                     ‒ Tough loss environment

Corporate/C&I         Flat        (7)%               + C&I better
                                                     + Plan to do more restructuring


                  Strong business execution in tough environment
                  Funding more restructuring
                  Improving cost structure for 2010+
                                                                    Preliminary 2009 third quarter results/21
Summary
1 Global environment improving but expecting gradual recovery


2 Very solid operating execution versus outlook for this year


3 Dramatically strengthened funding & balance sheet at GE Capital;
   GE parent is accumulating cash … achieved safe & secure objectives


4 Highly valuable Industrial backlog … service model is robust …
   equipment margin expansion is proven

5 Will continue to invest for long-term growth




                                                         Preliminary 2009 third quarter results/22

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Q3 2009 Earning Report of General Electric

  • 1. GE 2009 third quarter performance October 16, 2009 – 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: 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 as planned; the impact of conditions in the housing market and unemployment rates on the level of commercial and consumer credit defaults; our ability to maintain our current credit rating and the impact on our funding costs and competitive position if we do not do so; the soundness of other financial institutions with which GE Capital does business; the adequacy of our cash flow and earnings and other conditions which may affect our ability to maintain our quarterly dividend at the current level; the level of demand and financial performance of the major industries we serve, including, without limitation, air and rail transportation, energy generation, network television, real estate and healthcare; the impact of regulation and regulatory, investigative and legal proceedings and legal compliance risks, including the impact of proposed financial services regulation; strategic actions, including acquisitions and dispositions and our success in integrating acquired businesses; and numerous other matters of national, regional and global scale, including those of a political, economic, business and competitive nature. These uncertainties may cause our actual future results to be materially different than those expressed in our forward-looking statements. We do not undertake to update our forward- looking statements.” “This document may also contain non-GAAP financial information. Management uses this information in its internal analysis of results and believes that this information may be informative to investors in gauging the quality of our financial performance, identifying trends in our results and providing meaningful period-to-period comparisons. For a reconciliation of non-GAAP measures presented in this document, see the accompanying supplemental information posted to the investor relations section of our website at www.ge.com.” “In this document, “GE” refers to the Industrial businesses of the Company including GECS on an equity basis. “GE (ex. GECS)” and/or “Industrial” refer to GE excluding Financial Services.”
  • 2. Overview Global environment improving but expecting gradual recovery 3Q’09 earnings of $2.5B … $.22 EPS, (51)% driven by Capital Finance • Industrial segment profit +4% … Infrastructure, Media, C&I • Capital Finance $263MM, (87)% … favorable tax credits as expected • Aggressive cost out … $.05 EPS restructuring and other charges in 3Q Executing through the recession • Cash flow of $4.4B in 3Q’09 & $11.5B, +1% YTD … positioned for $15B+ total year • $61B consolidated cash … parent cash increased vs. 2Q • Strong industrial margin expansion … 16.3%, + 260 bps. versus 3Q’08 • Infrastructure orders (18)%, but backlog increased to record high of $174B • Services continue to remain strong • GE Capital Finance reserves +$0.8B in 3Q, coverage at 2.08% Continuing to invest in the long term • Tracking to higher ’09 R&D spend vs. ’08 • Broke ground on GE Energy Technology Center in Russia • ScanWind acquisition expanding offshore wind capability Preliminary 2009 third quarter results/2
  • 3. Environment Big factors Status Dramatic financial “Better” + Credit markets improving crisis + Pricing attractive – Losses still remain high Difficult recession “Bottoming” + Some signs of life + Delinquencies leveling off – Excess capacity, CAPEX constrained – Unemployment Global growth “Available” + Emerging markets relative strength Environment improved in 3Q’09 Preliminary 2009 third quarter results/3
  • 4. Executing through the recession Stabilize Outperforming Strengthen the Capital Finance + in a + balance sheet tough economy Funding well ahead Protect backlog Strong cash generation of plan Services strength Maximize financial Capital ratios flexibility strong & improving Global orders Strong margins on Lower cost new originations Expanding margins Working through Real Estate cycle Status Much improved As expected Much improved Preliminary 2009 third quarter results/4
  • 5. Capital Finance safe & secure ($ in billions) Long-term debt funding GECS commercial paper Leverage–b) $84 7.7:1 $72 GECS 5.9:1 5.7:1 $45 $35-40 $50 $50 GECC 7.1:1 5.6:1 5.4:1 35–a) '08 '09 '10F 4Q'08 2Q'09 3Q'09 4Q'08 2Q'09 3Q'09 (a- 2009 YTD as of 10/5 (b- net of cash & equivalents with hybrid Cash & backup bank lines >2X CP debt as equity ex. noncontrolling interests Tier 1 common ratio Ending net investment–c) 7.4% 7.5% $525 5.7% $501 $485 GECC $475-485 GECS 4.7 6.4 6.5 4Q'08 2Q'09 3Q'09 4Q'08 2Q'09 3Q'09 4Q'09E GECS $53 $68 $71 (c- Capital Finance excluding effects of FX equity Strong execution through the crisis … ahead of plan on all metrics Preliminary 2009 third quarter results/5
  • 6. Backlog growing ($ in billions) Orders $18.4/(18)% 3Q VPY/(18)% YTD Protecting backlog ($B) Equipment Services $172 $171 $169 $174 $158 $ V% $ V% $125 51 50 48 47 $110 49 Energy $2.6 (50)% $3.9 9% 31 Equip. 23 O&G 1.3 6 0.8 (5) Aviation 1.9 (37) 2.6 1 121 121 122 127 CSA 87 93 109 Healthcare 2.4 (13) 1.5 (1) Transportation 0.2 (23) 0.5 (43) Ent. Solutions 0.9 (24) – – '05 '06 '07 '08 1Q 2Q 3Q Total $9.2 (32)% $9.2 3% 2009 Equipment orders Highlights $14.4 $13.4 $13.2 Equipment orders +$0.7B vs. 2Q’09 … $12.9 continuing to win global orders $9.9 + $8.4 $9.2 Service orders +3% driven by strength in Energy with Smart Grid Backlog at all-time high: equipment steady & continuing to acquire service commitments 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4QE – $7.9B new CSA additions 3Q’09 2008 2009 Equipment orders improving … up $741MM vs. 2Q’09 Preliminary 2009 third quarter results/6
  • 7. Industrial revenues ($ in billions) Key initiatives from 12/08 5 Services revenue solid 1 Protect backlog: up YTD, +$4B vs. 2Q + – Cancellations remain low: $0.2B in 3Q, $35 <$0.8B YTD $32 2 Growth in emerging markets – China +26%, India +12%, E. Europe +18% 3 Launching more new products … R&D up '07 '08 '09E + Extending product lines + Big initiatives: ecomagination, Margins + + + CSA B/L $109 $121 $127 healthymagination + Key product launches + 9 new Aviation CSAs $5.4B, 7 new Energy + Growing adjacencies CSAs $1.7B + Healthcare emerging market strength … 4 Stimulus … only beginning, expect ramp up China +19%, India +8% in 4Q’09/2010 + O&G CSA backlog +7% YTD + Wind + Smart Grid + Transportation Marine & Stationary up + HCIT + Global Rail double digits Total backlog at $174B … record high Preliminary 2009 third quarter results/7
  • 8. Lowering cost ($ in billions – pretax) Aggressive base Restructuring & other 3Q margin improvement cost reduction charges - pipeline ’09/’10 16.3% $44 $2B+ ∆ bps. $40 13.7% – Energy 100 Tech 10 $0.4B 4Q ~2 years approved NBCU 90 $0.9B C&I 60 3Q’09 3Q'08 3Q'09 '08 '09E '10F Projects Payback CM expansion of 4.6 pts. Significant restructuring & 3Q projects ‒ Positive value gap … price other charges to date ‒ Incandescent lighting expansion $0.5B ‒ ’07 … $2.0B ‒ Transportation resizing Service margins +4 pts. ‒ ’08 … $1.8B ‒ Optimizing services footprint No repeat of Olympics +1 pt. ‒ ’09 YTD … $1.9B $0.7B+ being reviewed for 3Q base costs 10% potential 4Q’09/’10 execution On track for total year growth Continuing to restructure … positioning for reset economy Preliminary 2009 third quarter results/8
  • 9. Generating cash ($ in billions) 3Q YTD CFOA GE cash balance walk Consolidated cash $61B $13.6 V% Total GECS $11.5 (16)% dividend 2.3 Beginning balance 1/1/09 $12.1 CFOA 11.5 Industrial 11.3 1% Dividends (7.8) P&E (1.8) GECS capital contribution (9.5) 2008 2009 Acquisitions/dispositions 0.5 No GECS dividend, Industrial cash flow higher year over year Change in debt/other 0.2 Focus on working capital driving strong September 2009 $5.2 cash generation CFOA on track for $15B+ total year Preliminary 2009 third quarter results/9
  • 11. Third quarter consolidated results ($ in billions – except EPS) ($ in millions) Continuing operations Segment 3Q’09 V% Revenues profit $ V% $ V% Revenues $37.8 (20)% – Industrial sales 25.1 (13) Energy Infra. $8,917 (9)% $1,582 11% – Financial Svcs. rev. 12.7 (31) Earnings–a) 2.5 (45) Technology Infra. 10,209 (11) 1,748 (8) EPS–b) .22 (51) Infrastructure 19,126 (10) 3,330 – CFOA YTD 11.5 (16) – Industrial CFOA 11.5 1 NBC Universal 4,079 (20) 732 13 3Q’09 3Q’09 YTD Capital Finance 12,161 (30) 263 (87) Tax rate (25)% (7)% C&I 2,438 (18) 117 F – GE (ex. GECS) 22 26 – GECS 114 210 (a- attributable to GE $4,442 (26)% (b- earnings attributable to common shareowners Preliminary 2009 third quarter results/11
  • 12. 3Q items (Earnings per-share) Impact Comments Corporate restructuring & $(.05) Cost structure improvements other charges Footprint reductions & organization realignment Marks & impairments (.06) Real Estate, Treasury marks & other impairments NBCU items .01 AETN gain less impairments & other charges in NBCU $(.10) Continued restructuring improves cost base Preliminary 2009 first quarter results/ 12
  • 13. Capital Finance highlights ($ in millions) Update from July 28 3Q’09 $ V% Funding + ’09 ENI reduction targets already achieved Revenues $12,161 (30)% + GECC funded >90% of 2010 plan – Negative carry cost ~$0.7B in ’09 Segment profit $263 (87)% Assets $551B (11)% Originations + $23B of commercial originations YTD Key 3Q business results + Underwriting business at attractive returns Assets Segment Losses ($B) profit ($MM) + Slightly better than Fed base case $ V% $ V% – Real Estate continues to be difficult Consumer $180 (16)% $434 (45)% Reserve coverage Real Estate 84 (6) (538) U + Reserves $7.3B, up $0.8B from 2Q + Coverage 2.08%, up 26 bps. CLL 214 (14) 135 (65) GECAS 50 1 191 (33) Cost out EFS 23 3 41 (87) + Delivered $2.6B cost out YTD Executing well in difficult environment $2B Capital Finance earnings YTD Committed to GE Capital, strengthening fixed charge coverage agreement Next Capital Finance analyst meeting December 8 Preliminary 2009 first quarter results/ 13
  • 14. Capital Finance portfolio quality Equipment Consumer 30+ delinquency–a) Non-earners 13.38% 13.23% 7.79% 7.78% 11.80% Mortgage 6.81% 10.56% Mortgage 2.84% 3.01% 9.22% 5.47% 8.80% Delinquencies–a) 2.78% 8.20% 8.73% 4.59% 4.71% 4.78% 7.43% 6.38% Total 4.19% 2.17% 2.86% 3.33% Total 2.45% 2.74% 1.61% 2.27% 5.62% 6.02% 5.92% 5.95% 1.68% Non-earners 4.70% 1.46% Non-mortgage 2.16% 2.21% 2.33% 1.75% Non-mortgage 1.41% 3Q'08 4Q'08 1Q'09 2Q'09 3Q'09 3Q'08 4Q'08 1Q'09 2Q'09 3Q'09 3Q'08 4Q'08 1Q'09 2Q'09 3Q'09 Drivers Drivers Delinquency up 23 bps., driven by North America delinquencies up 31 bps. to 7.27% Americas portfolio partially offset by ‒ Delinquency up from seasonal low but rate of increase slowing Asia & Europe U.K. home lending down 9 bps. from 2Q Non-earners +41 bps. vs. 2Q’09 ‒ Continued improvement in HPI (3 consecutive months) ‒ Driven by senior secured loans … ‒ Net gains on REO sales vs. marks in all 3 quarters well collateralized Global banking delinquencies flat … strong collections efforts (a- managed assets Tough environment … but some signs of stabilization Preliminary 2009 third quarter results/14
  • 15. Capital Finance reserve coverage ($ in billions) $7.3 Commercial $6.6 Allowance Reserves increased by $0.6B in 3Q’09 … $5.7 3.1 coverage rate to 1.43% for losses $5.3 2.5 – Strong collateral will lead to ultimate 2.0 loss significantly below non-earners Comm’l. 1.7 Consumer 4.1 4.2 Consumer 3.6 3.7 Coverage at 3.11% U.S. Card & Sales Finance – Coverage rate up 45 bps. to 7.02% – Reserves/non-earnings 209% Mortgage 4Q'08 1Q'09 2Q'09 3Q'09 – Coverage rate up 26 bps. to 1.59% Reserve – Reserves/non-earnings 20% coverage 1.42% 1.59% 1.82% 2.08% – U.K. REO sales realization at 115% Reserve coverage +$757MM, +26 bps. vs. prior quarter Preliminary 2009 third quarter results/15
  • 16. Capital Finance non-earning exposure walk ($ in billions) Commercial Consumer $7.2 (1.5) $6.5 (1.8) (1.8) 100% recovery 4.8 (1.4) Non- 189% (2.3) coverage mortgage $3.3 Loans in (2.8) non- recovery/ $3.1 mortgage workout Cure reserves Expect full recovery/ 186% cure coverage 206% coverage 1.6 Collateral $1.0 value on remaining (0.1) 0.5 exposure 3Q’09 Estimated 3Q’09 3Q’09 Mortgage Estimated Estimated Estimated 3Q’09 non-earning loss exposure non-earning non-earnings collateral MI loss mortgage reserves value exposure reserves 2Q’09 coverage 173% 173% Preliminary 2009 third quarter results/16
  • 17. Commercial Real Estate Debt portfolio quality Equity operating metrics 4.03% 4.19% Delinquencies Original 2.24% Metrics ($MM) outlook 3Q YTD Status 2.88% 2.90% 0.62% 1.15% NOI $1,104 $1,199 0.28% Non-earners (pre-tax) 1.22% 0.19% 0.41% 0.18% Gains $124 $88 2Q'08 3Q'08 4Q'08 1Q'09 2Q'09 3Q'09 (net) Non-earners steady … $1.3B 2Q and 3Q Impairments $291 $467 (pre-tax) Specific reserves $562MM 3Q primarily due to revaluation review Occupancy 80% 79% – 77% of impaired loans with specific reserves are current Leasing 18.0 19.1 Reserve coverage increased from 1.2% to 2.3% (MM sq. ft.) Risks understood and manageable Preliminary 2009 third quarter results/17
  • 18. NBCU highlights ($ in millions) 3Q’09 $ V% 3Q’09 reported 13% AETN less 3Q’09 impairments (22) Revenues $4,079 (20)% & other charges Segment profit $732 13% Adjusted (9)% 3rd quarter dynamics 1 Cable 3 Film & Parks + Cable strength continues … USA rated #1, - Under performance at the box office … delivered more viewers in 3Q than any cable Inglourious Basterds only success network has in any quarter - Tough comps versus last year’s Mamma Mia + Syfy +30%, CNBC +9%, Bravo +4% +/- Continued weakness in Parks attendance, offset by strong cost control 2 Broadcast 4 Digital & Other +/- Prime ratings as expected, scatter above upfront + hulu continues strong growth + Successful launch of The Jay Leno Show + Gain on AETN partially offset by impairments + Conan & Fallon win 3Q Late Night in key demo & other charges + Local markets showing signs of improvement + Continued costs/workforce reduction Performance in line with industry Preliminary 2009 third quarter results/18
  • 19. Technology Infrastructure highlights ($ in millions) 3Q dynamics 3Q’09 $ V% Aviation • $4.5B orders, (19)% … equipment backlog $21B, Revenues $10,209 (11)% CSA backlog $59B Segment profit $1,748 (8)% • Revenues (6)% … equipment (10)%, commercial & military service (2)% • Segment profit +16% … favorable price, cost Key 3Q business results productivity offset volume pressures Segment Healthcare Revenues profit • $3.9B orders, (9)% … equipment backlog $3.4B, $ V% $ V% service orders (1)% • Revenues (9)% … equipment (11)%, services (6)% Aviation $4,542 (6)% 970 16% • Segment profit (20)% … U.S. market remains tough Healthcare 3,801 (9) 508 (20) Transportation Transportation 970 (23) 177 (31) • $0.6B orders, (38)% … challenging U.S. environment • Equipment revenues (32)%, services revenues (14)% GE operating well in a tough environment Preliminary 2009 third quarter results/19
  • 20. Energy Infrastructure highlights ($ in millions) 3Q’09 $ V% 3Q dynamics Revenues $8,917 (9)% Energy Segment profit $1,582 11% • $6.5B orders, (25)% … expect Kuwait in 4Q • Revenues (11)% … Thermal (30)%, Water (16)%, Wind & Aero flat … Energy Services +10% Key 3Q business results • Segment profit +11% … $0.4B price + deflation Segment Revenues profit $ V% $ V% Oil & Gas Energy $7,128 (11)% $1,273 11% • $2.1B orders, +1% … equipment backlog $6.9B, CSA backlog $3.8B Oil & Gas 1,953 3 338 11 • Revenues +3% … equipment +7%, service (2)% • Segment profit +11% … value gap & base cost control strong drivers Strong operating leverage despite fewer shipments Preliminary 2009 third quarter results/20
  • 21. 2009 company update EPG 3Q YTD Energy ++ +14% + Solid service position Infrastructure 3% ‒ Lower equipment sales Technology + (5) (3)% + Strong cost out/margins Infrastructure + Global stimulus NBCU – (27) Capital Finance Profitable $2.0B + Funding solid; originations strong ‒ Tough loss environment Corporate/C&I Flat (7)% + C&I better + Plan to do more restructuring Strong business execution in tough environment Funding more restructuring Improving cost structure for 2010+ Preliminary 2009 third quarter results/21
  • 22. Summary 1 Global environment improving but expecting gradual recovery 2 Very solid operating execution versus outlook for this year 3 Dramatically strengthened funding & balance sheet at GE Capital; GE parent is accumulating cash … achieved safe & secure objectives 4 Highly valuable Industrial backlog … service model is robust … equipment margin expansion is proven 5 Will continue to invest for long-term growth Preliminary 2009 third quarter results/22