GE Capital Passes $100 Billion Threshold of Transactions Closed; Signings To Date Total $149 Billion

• Strong execution on strategy to become simpler, more valuable industrial company
• Targeting 1Q 2016 application for SIFI de-designation
• GE Capital Exit Plan to be largely complete by end of 2016
• Completes sale of most of Corporate Aircraft financing portfolio

FAIRFIELD, Conn.--(BUSINESS WIRE)-- GE (NYSE: GE) announced today that it has completed more than $100 billion in previously announced portfolio and business unit sales as part of its strategy to significantly reduce the size of GE Capital and apply for de-designation as a systemically important financial institution (SIFI).

Since announcing the strategy on April 10, 2015 to sell most GE Capital assets, GE has signed agreements for $149 billion of the approximately $200 billion in ending net investment (ENI) that it plans to sell through this process. The sales and exit plan are expected to be largely complete by the end of 2016. GE will retain the financing businesses that directly relate to GE’s industrial businesses, including GE Capital Aviation Services, GE Capital Energy Financial Services and GE Capital Healthcare Equipment Finance. This process will result in about $35 billion of capital returned to GE (subject to regulatory approval where required).

In addition, last month, GE also completed the split-off of Synchrony Financial through a share exchange. The separation reduces the systemic footprint of GE Capital, reduced ENI by $65 billion and reduced the outstanding float of GE common stock by about 6.6%, the equivalent of approximately $20.4 billion in GE stock buyback.

With the completion of the split off and progress to-date on the GE Capital Exit Plan, GE is on track to return more than $90 billion to investors from 2015 to 2018 with more than 90% of earnings coming from high-return industrial businesses.

“When we announced our new strategy in April, we set an ambitious goal of completing $90 billion of GE Capital asset sales by year-end. Given strong market interest and phenomenal execution by our teams around the world, we were able to revise and surpass that target today, reaching $101 billion in closed transactions and ENI reduction,” said Keith Sherin, GE Capital chairman and CEO.

To pass the $100 billion threshold, today GE completed the U.S. and Canadian portion of the previously announced sale of its fixed-wing Corporate Aircraft financing portfolio in the Americas to Global Jet Capital, representing about $2.1 billion in ENI. The sale of the remaining aircraft finance assets, made up of accounts in Mexico which comprise less than 10% of the total Americas portfolio, is expected to close in January. Today’s transaction will contribute $0.3 billion of capital to the $35 billion target.

About GE

GE (NYSE: GE) is the world’s Digital Industrial Company, transforming industry with software-defined machines and solutions that are connected, responsive and predictive. GE is organized around a global exchange of knowledge, the "GE Store," through which each business shares and accesses the same technology, markets, structure and intellect. Each invention further fuels innovation and application across our industrial sectors. With people, services, technology and scale, GE delivers better outcomes for customers by speaking the language of industry. www.ge.com

GE’s Investor Relations website at www.ge.com/investor and our corporate blog at www.gereports.com, as well as GE’s Facebook page and Twitter accounts, including @GE_Reports, contain a significant amount of information about GE, including financial and other information for investors. GE encourages investors to visit these websites from time to time, as information is updated and new information is posted.

Caution Concerning Forward-Looking Statements

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," "will," "would," or "target." Forward-looking statements by their nature address matters that are, to different degrees, uncertain, such as statements about our announced plan to reduce the size of our financial services businesses, including expected cash and non-cash charges associated with this plan; expected income; earnings per share; revenues; organic growth; margins; cost structure; restructuring charges; cash flows; return on capital; capital expenditures, capital allocation or capital structure; dividends; and the split between Industrial and GE Capital earnings. For us, particular uncertainties that could cause our actual results to be materially different than those expressed in our forward-looking statements include: obtaining (or the timing of obtaining) any required regulatory reviews or approvals or any other consents or approvals associated with our announced plan to reduce the size of our financial services businesses; our ability to complete incremental asset sales as part of that plan in a timely manner (or at all) and at the prices we have assumed; changes in law, economic and financial conditions, including interest and exchange rate volatility, commodity and equity prices and the value of financial assets, including the impact of these conditions on our ability to sell or the value of incremental assets to be sold as part of our announced plan to reduce the size of our financial services businesses as well as other aspects of that plan; the impact of conditions in the financial and credit markets on the availability and cost of GECC's funding, and GECC's exposure to counterparties; the impact of conditions in the housing market and unemployment rates on the level of commercial and consumer credit defaults; pending and future mortgage loan repurchase claims and other litigation claims in connection with WMC, which may affect our estimates of liability, including possible loss estimates; 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 flows and earnings and other conditions which may affect our ability to pay our quarterly dividend at the planned level or to repurchase shares at planned levels; GECC's ability to pay dividends to GE at the planned level, which may be affected by GECC's cash flows and earnings, financial services regulation and oversight, and other factors; our ability to convert pre-order commitments/wins into orders; the price we realize on orders since commitments/wins are stated at list prices; customer actions or developments such as early aircraft retirements or reduced energy demand and other factors that may affect the level of demand and financial performance of the major industries and customers we serve; the effectiveness of our risk management framework; the impact of regulation and regulatory, investigative and legal proceedings and legal compliance risks, including the impact of financial services regulation and litigation; our capital allocation plans, as such plans may change including with respect to the timing and size of share repurchases, acquisitions, joint ventures, dispositions and other strategic actions; our success in completing, including obtaining regulatory approvals for, announced transactions, such as the Appliances disposition and our announced plan and transactions to reduce the size of our financial services businesses; our success in integrating acquired businesses and operating joint ventures; our ability to realize anticipated earnings and savings from announced transactions, acquired businesses and joint ventures; the impact of potential information technology or data security breaches; and the other factors that are described in "Risk Factors" in our Annual Report on Form 10-K for the year ended December 31, 2014. These or other 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 includes certain forward-looking projected financial information that is based on current estimates and forecasts. Actual results could differ materially.

View source version on businesswire.com: http://www.businesswire.com/news/home/20151209006483/en/

Investor:
Matt Cribbins, +1 203 373 2424, [email protected]
or
Media:
GE Capital:
Susan Bishop, +1 203 750 5362, [email protected]
GE:
Seth Martin, +1 203 572 3567, [email protected]

Source: GE

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