GECommercial Aviation Services

Henry HubschmanPresident and CEOGE Commercial Aviation Services (GECAS)June 19, 2007

“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 often contain words such as "expects," "anticipates," "intends," "plans," "believes," "seeks," or "will." Forward-looking statements by their nature address matters that are, to different degrees, uncertain. For us, particular uncertainties which could adversely or positively affect our future results include: the behavior of financial markets, including fluctuations in interest rates and commodity prices; strategic actions, including dispositions; future integration of acquired businesses; future financial performance of major industries which we serve, including, without limitation, the air and rail transportation, energy generation, media, real estate and healthcare industries; unanticipated loss development in our insurance businesses; and numerous other matters of national, regional and global scale, including those of a political, economic, business, competitive and regulatory 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.”

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Agenda

• GECAS Overview

• Aviation Market Snapshot

• Core Growth

• Innovative Edge

• Portfolio

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GECAS Overview

• Over 1750 owned and managed aircraft

• ~230 airline customers in over 70 countries

• Worldwide presence with 26 offices

• Product breadth – lessor, financier & solutions provider

• Deep domain expertise

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~ 230 Global Customers

157

230

2000 2007

46%

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Broad Global Footprint

Shannon

Luxembourg

Vienna

Tokyo

Hong Kong

StamfordNew York

Singapore

Miami

Phoenix

Beijing

Dubai

Toulouse

MoscowCincinnati

Sao Paulo

Mexico CityLondon

Delhi

Toronto

Shanghai

Memphis

Austin

Baltimore

Oslo

Frankfurt

Since 2001, seventeen new offices

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Extensive Product Offerings

Narrowbodies Widebodies Regional Jets Freighters

StructuredFinance/Debt

Engine Leasing & Financing

Parts Trading, Financing & Optimization

Airport & Cargo Facility Financing

From aircraft to airports

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Deep Domain Expertise

• 40+ years experience

• Successfully managed through multiple cycles

• First-in-class technical department

• Structured finance and capital markets skills for large, value-added transactions

• Innovative mindset and ability to execute new ideas

• Pricing and risk discipline with proactive portfolio focus

• Backed by the GE brand

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Aviation Market Snapshot

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Strong Market Environment

Tight Aircraft Supply

• Manufacturers largely sold out to 2010+

• Significant order backlog

• Lessor availability tight to 2009+

Excess Liquidity

• Global savings glut … trade surpluses, petro $, retirement assets, etc

• Usual players active + many new entrants

– Hedge funds, private equity, emerging market investors, public REIT-type players

• Purchase prices bid up; equity yields/debt spreads compressing

• China, India, SE Asia boom

• Resource rich economies benefit: M. East, Russia, Brazil, Africa

• EU, Japan in upswing

Strong Global Growth

Market Strong for Placing Metal and Selling Assets

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Core Growth

• Low cost carriers

• Cargo

• Emerging markets: China, India, Russia, Brazil

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LCC’s ... Fleet Up Almost 4x Since 1999

59

218

9 29

1999 2006 2010F

~500

60+LCC Airline Customers

Source: GECAS estimate

# of Aircraft

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Cargo … Exponential Growth Since 2000

51

•Global cargo is growing at twice the rate of passenger sector

•GECAS actions

– Finance new production freighters e.g. 777LRF, 747-400F

– Convert used aircraft to freighters e.g. Air China 747F, EVA 747F, TNT 737F

– Provide debt financing

•Placed order for 777 freighters

’10F

3x 737-300SF

11x 767-200SF

7x 737-300SF

4x 747-400F

2x MD11F

2x 747-400SF

CAGR49%

’00 ’07

$.1

$2.7

$5.3 ($B)

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Emerging Markets … Up 3.5x Since 2004

Brazil

Russia

India

China

0 2.5 5 7.5 10

2004

EST 2010

$B Assets

�1990’s: Pioneer

�1998-2006: Growth Leader

�2007+: Innovator

�Huge growth potential

• US - 22 aircraft per MM people

• Emerging markets - .6 aircraft per MM people

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China ... 200+ Aircraft / $5.6B Assets (Includes Commitments)

Financed multiple national carriers

Expanded to key regional players and low cost carriers

Broadening product offerings to parts financing and airports with ongoing LCC focus

1990’s

Pioneer

1998-2005

Growth Leader

2005+

Innovator

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India ... 40+ Aircraft / $1.4B Assets (Includes Commitments)

2004-2006Growth Leader

1st deal with Jet in 1994

Expanded to leading low cost carriers

Growing core leasing business and pushing multi-product menu: cargo, engine leasing, RJ, airports infrastructure

1990’s

Pioneer

2007+Innovator

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Russia ... 90+ Aircraft / $2.2B (Includes Commitments)

Leased first Aeroflot aircraft in 1997

Expanded to leading low cost carriers … now presence at 9 of top 15 Russian carriers.

Continuing core leasing growth and pushing multi-product menu: cargo, engine leasing, parts & rotables

2004-2006Growth Leader

1990’s

Pioneer

2007+Innovator

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Brazil ... ~80 Aircraft / $2.3B Assets (Includes Commitments)

Early player with flagship carrier and key regional player

Broadening product offerings to RJ’s e.g. BRA and exploring parts financing

1990’s HighlightsPioneer

Late 1990’s -2006 Growth Leader

2007+Innovator

• Helped TAM grow from regional to flag carrier

• Leased GOL’s first four aircraft• Successfully redeployed 36

VARIG aircraft

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GECAS applies innovative edge to

enter new segments

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Airports Financing'07

Aircraft Debt (PK) '00

Engine leasing'99

Freighter Conversion '02

Aircraft Parts Trading '06

GECAS Created '93

Unparalleled Innovation

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Expanding Into Parts Financing Segment

• Parts trading, stub leases & financings

• Significant GECAS commercial synergies

–Use portfolio roll-off as part-out feedstock

–Grow parts financing book utilizing Memphis redistribution capabilities

–Provide airframe support pools for used aircraft

• Completes full life cycle solutions … from new order aircraft to parts trading

In 2006 acquired The Memphis Group, world’s 3rd largest parts trader

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Building three platforms:

• Global Infrastructure Partners (GIP)

– Acquire large airports, e.g. bought London City in 2006

• Lynxs Cargo Group (“Cargo In a Box”)

– Develop and acquire air cargo facilities

– Build standardized, modularized low cost air cargo facilities

• Avia Solutions (“Airport in a Box”)

– Develop/acquire & improve regional/LCC terminals

– Modular, eco-friendly designs

Expanding into Airports InfrastructureUtilizing GECAS aviation expertise/ relationships to capture share of ~$250B segment with large annual capex spend

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GECAS portfolio and skyline are

in great shape

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Loans

15%

Finance

Leases

24%

Op Leases

61%

Loans

7%

Finance

Leases

48%

Op Leases

45%

More Diversified Portfolio2000

2006

�Balancing product mix on equipment types

�Increased lower risk operating leases to 61% of portfolio

�More than doubled loan exposure

Risk Management Actions

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Excellent Fleet Composition

Wide Body

21%

RJ

17%

Cargo

7%

Narrow

Body

55%

�Good assets with broad operating base

�Not more than 3 AOG’s in past two years

�82% of narrowbody fleet is attractive A320 and 737NG aircraft

�98% widebody fleet is high demand 767, 747, 777 and A330’s

Note: 1,419 owned aircraft as of YE’06

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Younger Fleet ... Age Down 25% Since 2004

�Pro-actively managed fleet

– Disposition of older assets

– New order purchases

�Aligned with demand for younger, more fuel efficient aircraft

�Skyline in great shape

– New order 100% placed out in ’07/’08

– Existing fleet 99% placed in ’07, 75% in ‘08

2004 2006

8.4

6.3

NOTES: Average age total book =total # a/cTotal Book

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GECAS Financial Snapshot

15% CAGR

2000 2006

Net Income

$0.5

$1.1

A Proven Growth Business

$44

�High growth, diversified portfolio

�Growing in emerging markets

�Broadening products … Airports, The Memphis Group

�Great customer relationships

�Veteran team with significant domain expertise

16% CAGR

$18

Assets

($ in billions)

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There are Risks That Remain…

Event Risk/ Terrorism

• Global economy is stable

• Aircraft and passenger traffic outlook is positive

• GECAS: Extensive restructuring/bankruptcy/experience

Infrastructure Challenges in Emerging Markets

• Rapid growth in aviation sector may be challenged by supply side constraints, e.g. pilots and airports, Air Traffic Control

• GECAS: Expanding from aircraft to airport & transportation infrastructure to support development in emerging markets

Energy/ Environmental Factors

• Fuel costs stable at <$70/barrel, airlines pushing most of cost to passengers

• Accelerating pressure for newer, fuel efficient aircraft

• GECAS: Global fleet rollover and financing experience

GECAS Will Manage Risk With Extensive Experience & Data-Driven Discipline

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GECAS Well Positioned for Continued Growth

• Excellence in cycle management

• Veteran team

• Extensive geographical footprint

• Broad product array

• “Great customer relationships”

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