GE Capital. Long Term Debt Overview. Unsecured debt with maturities from 1-30 years

Transcription

1 Long Term Debt Overview Unsecured debt with maturities from 1-30 years "This document contains "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of Forward-looking statements may be identified by words such as "expects", "anticipates","intends", "plans", "believes", "seeks", "estimates", "will" or words of similar meaning and include, but are not limited to, statements about the expected future business and financial performance of GE. Forward-looking statements are based on management's current expectations and assumptions, which are inherently subject to uncertainties, risks and changes in circumstances that are difficult to predict. Actual outcomes and results may differ materially from these expectations and assumptions due to changes in global political, economic, business, competitive, market, regulatory and other factors. We undertake no obligation to publicly update or review any forward-looking information, whether as a result of new information, future developments or otherwise." Imagination at work. 2nd quarter 2014

2 structure Support GE support to ensure GECC 1.1x fixed-charge coverage ratio (strengthened Income Maintenance Agreement in 2009) History of capital infusion or dividend reductions when necessary General Electric Company AA+/Aa3 (stable) 100% Commitment to local markets GECC unconditional guarantee Highly rated parent Proceeds used primarily to fund local assets Access to deeper investor base GE Japan Funding KK General Electric Capital Corporation Primary GE Issuer/Guarantor AA+/A1 (stable) 100% UK Funding Owns all of GE s financing assets European Funding New Zealand Funding Australia Funding Canada Funding Mexico Funding 2

3 GE credit ratings Moody s Rating Short Term Long Term Short Term S&P Rating Long Term General Electric Company P-1 Aa3 A-1+ AA+ General Electric Capital Corporation P-1 A1 A-1+ AA+ Australia Funding* A1 AA+ Canada Funding* A1 AA+ European Funding* P-1 A1 A-1+ AA+ UK Funding* P-1 A1 A-1+ AA+ * Ratings shown for this entity represent the ratings assigned to short term and long term debt, as applicable, issued by this entity, and not the ratings of the entity. Debt issued by this entity is guaranteed by General Electric Capital Corporation. 3

4 GECC funding ($ in billions) Non-recourse Securitization Debt composition a) $375 $371 $363 -b) Unsecured term issuances $32 $32 LT debt $9 '12 '13 '14YTD Deposits/CDs Alternative funding/other Comm l paper Q'13 4Q'13 2Q'14 Bank lines $48 $48 $46 CP coverage 100%+ 100%+ 100%+ Cash & equiv. $69 $75 $76 LT debt <1yr. $32 $39 $39 Completed $9B of LT debt issuance YTD in 5 currencies including $4B in 2Q Liquidity in the global CP markets continues to be strong Deposits/CDs and other alternative funding ~23% of total debt, securitization ~8% Liquidity position remains strong (a - Continuing operations (b - Includes ~$0.1B YTD FX impact and ~$1.5B YTD FAS 133 2nd quarter

5 Commercial paper Global Outstanding ($B) Highlights Int l U.S. $101 $72 GECC U.S. Market share down from 5.1% in 07 to ~2.0% at 2Q 14 Credit ratings: A-1+/P-1 Issued in four currency markets USD paper placed directly with end investors by experienced team in U.S. $29 14% $25 12% Committed undrawn credit lines $47B from ~50 institutions globally 86% 88% Q'14 Significantly reduced footprint, lowest CP balance in 20+ years second quarter

6 Unsecured long term debt dynamics GECC unsecured issuances and maturities ($B) 2014 Year to date - $9.3B Issuances Maturities Called '07 '08 '09 '10 '11 '12 '13 '14E Share of USD issuance 4.6% 2.8% 1.8% 1.8% 1.6% 1.5% 1.1% ~ USD Institutional ~74% JPY ~6% GPB ~5% USD Retail ~4% EUR ~7% AUD ~4% Issuance in 5 currencies ~5 year WAM Smaller market footprint <2% of USD investment grade index Support from diverse investor base Committed to current rating (AA+/A1) ~$(150)B of net negative supply in (a- senior unsecured long term debt; Maturities excludes callable LT debt non-guaranteed, LT debt from alternative funding/ other sources 6

7 5yr bond spread vs. peers OAS over Treasuries (bps) FinCo Idx Bank Idx C JPM 50 Aug-13 Oct-13 Dec-13 Feb-14 Apr-14 Jun-14 GECC Aa Corp WFC Source: Barclays Capital 7

8 Summary ($ in billions) Net income a) $8.3 $7.4 $6.6 ~$7 Key messages Smaller and safer franchise Our businesses are strong and well positioned competitively E Capital levels are in excess of expected targets $444 ENI ($B) -b) $418 We have strong liquidity and funding continuing to diversify funding sources $380 ~$370 Regulatory policies continue to evolve Designated nonbank SIFI E Strong and valuable franchise a) - Earnings from continuing operations attributable to GECC b) - Ending net investment ex. cash and equivalents 8

9