Strictly Private and Confidential

Mubadala GE Capital
October 2014

Unique Investment Opportunity

1

Sound Business Model,

Externally Validated

Highly Rated and Committed

Shareholders

Consistent Deal Flow from GE

Capital

Robust Underwriting and

Sound Asset Quality

Unique investment opportunity in an

investment grade commercial finance

Strong Credit Fundamentals

and Profitability

company with a global mandate

Mubadala GE Capital (MGEC) Overview

1H14
50/50 commercial finance JV between Mubadala and
GE Capital, established in 2009
Ratings

Cornerstone of major strategic partnership between

Mubadala and GE spanning aviation, energy and
industrial sectors

Moodys
Baa2
Stable

Fitch
A
Stable

Total Assets

$4.1Bn

Headquartered in Abu Dhabi, liaison offices in the UK

and US

Net Income

$63M

Change of control covenant triggered at 50% if

shareholders cease to own directly or indirectly
shares of MGEC

Capital Ratio

Secondary investor in senior-secured commercial loans

and leases to middle-market companies through GE
Capital

Liquidity1

$1.85Bn

21%
65

Employees

Portfolio by Industry as of 1H14

Manufacturing

3%
4%

2%
4%

Commercial Real Estate

Diversified, multi-asset class approach with global

mandate

Health Services
Other Services
Wholesale Trade

Strong credit fundamentals, consistent profitability,

robust risk management, strong capitalization and
liquidity

31%

7%
8%

Business Services
Transportation & Com.

13%

14%

Mining

Construction

14%

Others
1)

Includes liquidity lines obtained post 1H14 of which $200M was drawn as of 23 Oct14

Key Investment Highlights

1

Sound Business Model

Profitable operations, successful track record of execution

Diversified, multi-asset class approach, global mandate

Highly Rated and Committed Shareholders

50/50 JV cornerstone of a 5 year partnership between Mubadala and GE Capital, leveraging expertise and brand

Shareholders have supported MGEC via equity, shareholder loans and liquidity facilities

Consistent Access to Deal Flow from GE Capital

Access to attractive asset classes from GE Capitals market leading businesses

Leveraging GE Capital for expertise, systems, relationships, embedding locally

Robust Underwriting and Sound Asset Quality

Strong and deep credit risk culture across GE Capital implemented at MGEC

Diversified asset base, minimal write-offs, high and prudent capitalization levels, capacity for profitable growth

Strong Credit Fundamentals and Profitability

A by Fitch and Baa2 by Moodys - stable outlook

Strong track record in generating attractive risk-adjusted returns

Executed several financings with 11 top tier international and regional banks and continue to diversify our funding sources
3

Experienced and Proven Management Team

Sound Business Model,

Externally Validated

Accomplished management team. Prominent figures from MGECs shareholders with broad industry, operational and
leadership experience
Board of Directors

Holger Laubenthal
CEO
18 yrs exp.
Past: GE Capital,
Daimler AG, Bayer,
Roland Berger, PwC

Steve Ruth
CIO
27 yrs exp.
Past: GE Capital,
Bank of America

Ravi
Ramanujam
CFO
15 yrs exp.
Past: GE Capital

Tolga Ozgen
Commercial
leader
18 yrs exp.
Past: GE Capital,
McKinsey

Ali Najafbagy
Cap Markets
Leader at MGEC
and Mubadala
12 yrs exp.
Past: Goldman
Sachs

Shehzaad
Sacranie
General Counsel
15 yrs exp.
Past: A&O

James Pollard
MD - Tax
18 yrs exp.
Past: Dubai Intl
Capital, PwC

Pierre Abinakle
Chief Compliance
Officer
10 yrs exp.
Past: A&O

Ammar Alozaibi
Chief HR officer
15 yrs exp.
Past: Tabreed,
ENOC, Mubadala

Mike Horton
MD - Ops and IT
20 yrs exp.
Past: GE Capital,
GE, JER

James Harper
MD - Investments
15 yrs exp.
Past: GE Capital,
CSFB

Michael
McKinlay
Head of Treasury
15 yrs exp.
Past: Mubadala,
HBOS, Deloitte

Strong Mutual Commitment from Shareholders

Highly Rated and

Committed Shareholders

Mubadala and GE A unique strategic partnership

Highly rated and committed shareholders that consider MGEC as an integral part of their strategy
GE constantly sets global benchmarks and is well positioned for
continued success. When we partner, we seek to create value for both
parties in multiple ways. This partnership does exactly that.

Khaldoon Al Mubarak,
Mubadala Development
Company CEO

through this strategic relationship, which has become very strong and
clear between Abu Dhabi and GE, there will be bigger and better
opportunities for us this will certainly expand and develop an already
strong relationship.

This partnership brings together two world-class organizations with

complementary resources and a shared commitment to excellence.
Mubadala has deep experience, a diversified portfolio of businesses,
access to regional infrastructure opportunities and an exciting vision for
growth.
This partnership is consistent with our global growth initiatives and builds
on our long-term relationships in a high-growth region like the Middle
East.

Jeff Immelt
GE Chairman of the
Board and CEO

Strategically Aligned Shareholders

(Aa2/AA/AA)

Highly Rated and

Committed Shareholders

(A1/AA+/-)

Shareholders Overview
Principal investment and development agent in diversifying the
UAE economy. Active across 12 industries globally

Leading specialty finance lender with 47,0002 employees

operating in 50+ countries and over 1M commercial customers

$61Bn of assets and over $8Bn of revenues in 20131

$514Bn2 in total assets and over $8Bn of net income in 2013

Global Commercial
Finance Partnership
Power generation
Emirates Aluminum

Long term investor in GE

holding 0.8% of GE
shares as of 31-Dec 2013

GE Abu Dhabi
Leadership
Development Center

Long-term Investor

Global Co-investor

Industry Alignment

Strategic Regional
Positioning

Ecomagination Center

Aviation Engines &

MRO Capabilities
1)
2)

Mubadala Annual 2013 report

GE Investor Presentations Q214

MGEC Strategic Relevance to Mubadala & GE Capital

Strong Shareholder Investment

$850M equity invested to date

$400M committed working capital facility

provided equally by shareholders

Mubadalas $750M committed liquidity facility

GE Capitals $750M bi-lateral term loan

MGEC brand and identity includes

shareholders name

Senior Shareholder Engagement

Highly Rated and

Committed Shareholders

Mutually Beneficial Partnership

Access to attractive commercial finance assets

Invest alongside a global industry leader
Steady income stream with low correlation with
Mubadalas overall portfolio

Access to GE Global Leadership Programs for

local Emirati talent

Prominent members of shareholders senior

management serve on the Board of MGEC

Mubadala:
Carlos Obeid, Group CFO
Khaled Al Qubaisi, Chief Human Capital Officer
Derek Rozycki, Head of Corp. Fin. & Treasury
GE Capital:
Rich Laxer, President & CEO GE Capital
International
Aris Kekedjian, Head of Business Development
Peter Herbert, President & CEO Strategic
Ventures Group

Consistent and reliable funding partner

Improve GE Capitals offerings to clients

Aligned with GE Capital global businesses

Enhance wider GEs profile in the UAE and
Middle East
7

MGEC Aligned with GE Capital Businesses

Consistent Deal Flow

from GE Capital

GE Capital Businesses1
Commercial Lending And Leasing
GE Capital
Americas

GE Capital
International

$103Bn Assets
8k employees

$138Bn Assets
27k employees

Verticals

Real Estate
$40Bn Assets
5.6k properties

MGEC Driving Consistent Deal Flow

MGEC focused on
Reliable & timely responses
Good coverage of GE Capital businesses
Ability to build relationships across all levels of GE Capital

Energy
Financial
Services
$16Bn Assets

Consumer
Commercial
Aviation
Services
(GECAS)

Not in Scope

Credit cards
Personal loans
Mortgages

$46Bn Assets

MGECs Selection Criteria

Exclusively focused on GE Capital originated assets
Selection of GE Capital businesses driven by
Extensive due diligence
Ability to find repeatable & consistent deal flow
Return thresholds being met

1)

GE Investor presentations Nov13

Robust Underwriting and Risk Management

Robust Underwriting &

Sound Asset Quality

Quality portfolio through focus on senior secured structures supported by expertise and rigorous underwriting
Exclusive focus on GE Capital originated assets
Underwriting and Investing Philosophy
Preference for obligors that can service capital structure through a cycle and for
asset coverage to support strong recoveries
Controlled Screening and Underwriting Process
Commercial Team Initial
Screening

Minimum return threshold

Key credit parameters

Access to GE Capital Materials

Receives all information
provided to 3rd party lenders
Receives GE Capital credit
papers and models

Independent MGEC
Underwriting
Due diligence call held with GE
Capital

Investment Committee (IC)

Robust IC discussions
Unanimous approval required

MGEC forms independent view

Extensive Industry and Risk Experience to Support Investment Decisions

Experienced Coverage Team
Seasoned professionals,
experienced in Risk and
Capital Markets

GE Capital Expertise
Partner businesses with
proven track record
Unique insights due to GEs
industrial heritage

Strong MGEC Underwriting

Team

Senior Professionals

Breadth of industry and product MGEC CEO

expertise
MGEC CIO
Senior risk professionals
Head of Specialty Finance trained at GE Capital
Mubadala
Senior Restructuring Officer
GE Capital International
9

Sound Asset Quality and Diversified Loan Book

Portfolio by Industry1
4%

3%

Portfolio by Country1

2%

Internal Risk Classification2

2%

4%

Regular account reviews

1%

Accounts assigned a risk

classification

2%

31%

7%

2%
8%

3%
13%

14%

84%

86%

84%

85%

6%

14%
Manufacturing

Commercial Real Estate

Health Services

Other Services

Wholesale Trade

Business Services

Transportation & Com.

Mining

Construction

Others

USA

UAE

UK

Canada

Ireland

Turkey

Other

8%
7%

10%
10%
6%
4%
2012
2013
Doubtful
Special Mention

1H'14
Sub Standard
Pass

Write-off ($M) and Default Rate

13

6%

5%

2.8%

Real Estate Loans

META Loans

2.1%
5

29%

Closer monitoring of accounts

classified Special Mention to
Doubtful
Regular review of portfolio trends
against risk limits

Breakdown of MGECs Loan Portfolio1

Cash Flow Loans

Robust Underwriting &

Sound Asset Quality

Defaulted loans at 1H14

amounted to $74M (2.1% of gross
loan portfolio)
Loans are senior secured with a
high expected recovery rate

0.6%
60%

Other Loans

2012

2013

1H 2014

Write-offs ($M)
Default rate (% of total loans)
1)
2)

Gross loan portfolio as of 1H14 ($3.5Bn)

Gross loan portfolio which is neither past due nor impaired. As of H1 2014, 0.3% doubtful loans

10

Strong Credit Fundamentals and Profitability

Total Assets ($Bn)1
Steady asset growth
New volume and AUM
transfers

4.0

Capital Structure ($Bn)2

Introducing external
leverage in orderly
manner and maintaining
robust capital

4.0

4.1
0.3

0.7
3.1

3.1

0.1

3.5

Net Income ($M) and

Expense Ratio (%)3
Improved cost structure
through scale

2.2%

63

2.4
2.4

1.7
1.1%

0.2

0.3

2013

1H 2014

0.7

0.8

0.9

2012

2013

1H 2014

2012

Others
Loan portfolio
Cash and cash equivalents

1)
2)

70

0.5

2.9

0.1
2012

Strong Credit Fundamentals

& Profitability

0.7

0.1

3.7

4.1
0.3

Loan portfolio includes loans and advances and investment in finance leases
Risk weighted ratio of 21% as of 1H14

Others
Secured borrowings
Unsecured borrowings
Shareholders' loans
Net Equity

2013

1.0%

1H 2014

Net income
Expense ratio

11

Conservative Funding and Liquidity Profile

Strong Credit Fundamentals

& Profitability

Assets partly funded through secured and unsecured borrowings

Funding Profile

Shareholder equity and loans are an important part of business

Debt maturity profile broadly matched to behavioral asset life
Majority of debt portfolio matures between 1 to 5 years

Debt Maturity Profile

Secured debt facilities managed to self-liquidate by contractual maturity

$1.85Bn of committed sources of liquidity covering $0.75Bn of unsecured external debt maturities
$2.4Bn of unsecured debt maturities (including shareholder loans)

Liquidity Profile

Debt Maturity Profile: 1H14 ($Bn)

Secured

0.5

Unsecured

2.4

Total

2.9

Source of Liquidity ($Bn)

Liquidity $1.85bn
0.75

2.5

0.4

1.3

0.4

0.3

0.3

1.2
0.1

12 Month

1 and 5 years

External Borrowings

5+ years

Shareholders Loans

Cash and
equivalents

Mubadala
liquidity facility

As of 1H14

External
Shareholder
working capital
working capital
facility1
facility
Post 1H14
12

Conclusion

Unique Investment Opportunity

1

Sound Business Model,

Externally Validated

Highly Rated and Committed

Shareholders

Consistent Deal Flow from GE

Capital

Robust Underwriting and

Sound Asset Quality

Unique investment opportunity in an

investment grade commercial finance

Strong Credit Fundamentals

and Profitability

company with a global mandate

14

Appendix

MGEC Summary Corporate Structure

GE Capital
(US)
A1 / AA+

Mubadala
(UAE)
Aa2 / AA

50%

50%

100%

Mubadala GE
Capital Limited
(Bermuda)1
Issuer Entity
Baa2 / A

Mubadala GE
Capital PJSC
(UAE)

Abu Dhabi based

MGEC asset
manager

MGEC Global
Assets 1 Ltd
(Ireland)

MGEC Global
Assets 2 S.a.r.l
(Luxembourg)

Unsecured Debt Issuer

MGEC Global
Assets 3 Ltd
(Bermuda)

Secured financings
booking entities

Upstream guarantees

Rated group

1)

Held indirectly through MGEC Holdings LLC (US)

16