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GE CAPITAL STRATEGY – Ge Capital, Corporate Finance

Ge Capital, Corporate Finance · Apr 10, 2015 · 18 slides

Investor presentation from the Shale Experts oil & gas presentation and slide database. Every page is imaged and its text indexed for search across operators, plays, basins and time.

Slides

  1. GE CAPITAL STRATEGY – Ge Capital, Corporate Finance – slide 1
    Overview Executing plan to create a focused infrastructure & technology company + 90%+ of earnings from high-return Industrial businesses by 2018 + Consistent double-digit Industrial earnings growth built on the GE Store + Shrink GE…
  2. GE CAPITAL STRATEGY – Ge Capital, Corporate Finance – slide 2
    Executing the pivot (% of operating earnings) 2007 2014 Prior plan This…
  3. GE CAPITAL STRATEGY – Ge Capital, Corporate Finance – slide 3
    GE Capital actions since the crisis ( in billions) ENI (ex. liquidity) Portfolio actions generated 4B gains RE Equity & Mortgage exposure 60%+ 538 Non-strategic ENI 93B Increased financial strength 363 Building risk & regulatory…
  4. GE CAPITAL STRATEGY – Ge Capital, Corporate Finance – slide 4
    Why now 4. 1 Business model for large, wholesale-funded Finco has changed dramatically; more difficult to generate acceptable returns 2. 2 Synchrony and other dispositions are proof points that GE Capital platforms are more…
  5. GE CAPITAL STRATEGY – Ge Capital, Corporate Finance – slide 5
    GE Capital portfolio strategy ( in billions) 4Q14 ENI (ex. liquidity) Execution 275 1 Stabilizing capital markets GE guarantees GE Capital debt securities-a) Prior plans 75 underway GE-GECC merger; new intermediate Synchrony, ANZ,…
  6. GE CAPITAL STRATEGY – Ge Capital, Corporate Finance – slide 6
    Dispositions: track record ( in billions) 2009-2014 Synchrony Real Estate 100+ 65 26 26 Capital generated 4 5B 2-3-a) ENI Net gain ENI Gain ENI -c) Sale price Strong execution 40+ deals Successful IPO in July 14 22.5B…
  7. GE CAPITAL STRATEGY – Ge Capital, Corporate Finance – slide 7
    Asset disposition plan (4Q14 ENI ex. liquidity) 200B High-quality platforms + 26.5B of transactions announced, working to exit Real Estate 35 remaining 3B debt assets by YE, 1Q reductions/other 6B Global Fleet 9 + Financing &…
  8. GE CAPITAL STRATEGY – Ge Capital, Corporate Finance – slide 8
    GE Capital segment going forward ( in billions) ENI (ex. liquidity) Future GE Capital segment -a) 90 13% ex. 363 insurance 275 1.5 11% 140 90 90 ENI Net Income ROTE% ex. liquidity Key metrics 2014 2015E 2016F 2017F 2018F…
  9. GE CAPITAL STRATEGY – Ge Capital, Corporate Finance – slide 9
    GE Capital segment going forward core verticals (2018F, in billions) Energy Healthcare Aviation Services Financial Services Equipment Finance ENI 41 ENI 14 ENI 3 Net income 1 Net income 0.4 Net income 0.1 1 global aircraft…
  10. GE CAPITAL STRATEGY – Ge Capital, Corporate Finance – slide 10
    Safe & secure funding profile ( in billions) GE Capital debt funding profile Dynamics GE provides guarantee on 350 210B of GE Capital debt SYF 300 securities-a); amended IMA 62 SYF 65 Safe and secure; maintain 24- month…
  11. GE CAPITAL STRATEGY – Ge Capital, Corporate Finance – slide 11
    Exit costs ( in billions, after tax) Day 1 charge 1Q Businesses moved to HFS (3) 2 GOS offset by (5) GW allocation Impairments (shortened hold periods) (5) EU mortgages, Asia JVs, CLL loans & leases Tax (6) Repatriating 36 cash 1Q…
  12. GE CAPITAL STRATEGY – Ge Capital, Corporate Finance – slide 12
    GE Capital pro forma ( in billions, after tax) 15F 16F 18F Verticals 1.6 1.4 1.5 Core income from retained verticals Exits/HQ (10) (1) - Exit charges in 15; HQ run-off 15-17 Excess debt (0) (1) (1) Non-operating carry cost for excess…
  13. GE CAPITAL STRATEGY – Ge Capital, Corporate Finance – slide 13
    Value creation ( in billions) Disposition plan Unlocks value in GE Capital (ENI ex. liquidity) 90 Synchrony-a) 20 70 50% already Exits-a) 35 actioned-b) 40 Future GE Capital 20+ 2015E 2016F 2017F Value of GE Capital 75+ GE…
  14. GE CAPITAL STRATEGY – Ge Capital, Corporate Finance – slide 14
    Potential cash to investors 90B+ 1 Dividend remains a priority base plan to maintain current GE dividend in 2016 grow Dividends thereafter 35 2 Synchrony exchange 20B Benefit plan dilution 3 Buyback of up to 35B+ new Board GE…
  15. GE CAPITAL STRATEGY – Ge Capital, Corporate Finance – slide 15
    Industrial operating EPS outlook ++ 1.10-1.20 Underlying growth Gross margins/productivity Alstom Buyback Improved returns 2015E 2018F Framework 2015 in line with our framework 16
  16. GE CAPITAL STRATEGY – Ge Capital, Corporate Finance – slide 16
    Pro forma GE financials GE Operating EPS +/++ + 1.70-1.80 (.07) (.25) .25 GECC .18 GECC .60 Earnings (.17) 90%+ Exchange .10 Industrial 65% Industrial 1.10-1.20 2015E Synchrony net Smaller GE Buyback Core 2018F Framework…
  17. GE CAPITAL STRATEGY – Ge Capital, Corporate Finance – slide 17
    Summary Creating a more valuable GE 90%+ of earnings from high-return Industrial businesses Double-digit Industrial EPS growth Every business uses the GE Store Potential to return 90B+ to shareholders from 2015-2018 Strong track…
  18. GE CAPITAL STRATEGY – Ge Capital, Corporate Finance – slide 18

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