GE Capital Divestitures in 2015 Reach $157 Billion; 2015 Closings Total $104 Billion

Strong execution on strategy to become simpler, more valuable industrial company

GE Capital Exit Plan to be largely complete by end of 2016

FAIRFIELD, Conn.--(BUSINESS WIRE)-- GE (NYSE: GE) continues to quickly execute the GE Capital divestiture process with several transactions closing in the last few weeks of 2015. In its effort to divest most of GE Capital, during 2015 the company signed $157 billion in transactions and closed transactions of $104 billion in ending net investment (ENI).

“We continue to execute the sale of GE Capital assets with a focus on speed, value and certainty. There is an active sales process ongoing for our remaining international businesses while we continue to close the deals we signed earlier,” said GE Capital Chairman and CEO Keith Sherin. “As we shrink our risk-weighted assets, we will be returning the excess capital back to GE,” he added.

As previously announced, GE is embarking on a strategy to focus on its high-value industrial businesses and is selling most GE Capital assets. 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.

“I’m so proud of what the GE Capital team has accomplished since our strategic announcement in April: We’ve completed the sales of businesses with franchise risk, have reached sales agreements on the vast majority of our U.S. businesses, completed the Synchrony split off, completed the $36 billion debt exchange, and completed the internal reorganization of GE Capital,” said Sherin. “We are on track to file for SIFI de-designation in the first quarter of 2016 and to largely complete the GE Capital divestiture by the end of 2016.”

In the last few weeks of 2015, GE Capital closed several transactions including GE Capital’s position in the Middle Market Growth Program, representing about $0.6 billion of ENI and various closings in the GE Capital Real Estate portfolio representing about $0.4 billion of ENI. In addition, in 2016 the sale of GE Capital Railcar Services (railcar leasing) in North America to Wells Fargo was closed, representing about $2.8 billion of ENI.

Combined, these transactions will contribute approximately $1.4 billion of capital to the overall target of approximately $35 billion of dividends expected to GE under this plan (subject to regulatory approval where required).

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 GE Capital Global Holdings, LLC’s (“New GECC”) funding, and New 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; New GECC's ability to pay dividends to GE at the planned level, which may be affected by New 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.

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

Source: GE

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