How to break the barrier to growth in Australian Mid-Market?

THE GE CHALLENGE 2012

GE MONEY

GE CORPORATE FINANCE

70% GE ANZ

Retailer Solutions

Commercial Real Estate

Insurance Services

Distribution Finance

Money Direct

Fleet & Equity Finance

Pacific Premium

Source: Team's Estimation & GE in Australia FactSheet (2009)

Complicated Matrix Relations With GE Verticals Reliance On Credit To Earn Low Interest Rate Loan Low ROI (~1-2%) GECS reported decreasing Cash at End FY10-12 10% Of Debt Composition arriving from Securitization

MidMarket Lending

Consum er

40%

30%

GE Vertical

Real Estate

25%

5%

GE ANZ CAPS REVENUE

FINANCIAL CONCERNS

Source: Team's Estimation & GE Capital Investor Meeting Presentation (2011) & GE Capital WebCast Presentation (2010)

Non-service sectors, accounts up to 49% national GDP, but on the decline in 2012. Mid-Markets firms considered too big to received government support. But too small to access capital from banks. Not large enough to attract media attention

Economic Contribution by Mid-Market (2009-10)

4

Current: BARRIER TO GROWTH

Source: Team's Analysis & GE Capital Mid-Market Report (2011, 2012)

Focus on GE Verticals

Rising Asia Urbanization:

Long term invest on mineral & hedging to reduce impact of commodity prices changes
5

Environmental Regulation:
Moving forward to gas, take advantage of Water Treatment Services

Population Growth:
Huge opportunities for more in GE ANZ Healthcare sectors to grow

Source: Team's Strategies & GE Capital Investor Meeting Presentation (2011) & GE Finance Thoughts, BetterTrades (2012)

Implementing GE Insurance & GE Franchising

Learn from GE Insurance

-More Insurance product choices -Approach to corporate customers: firms, hospitals, factories

Start GE Franchising
ANZ Fast Food market reached its maturity in 2011 and grow constantly at 7% per ann., whilst more than 50% of market share is non-brand retailers high similarity with the USA.

Source: Team's Analysis & GE Capital Investor Meeting Presentation (2011) & IBIS Report: Fastfood Industry in Australia (2012)

Sub-plans

Action Plan
-Mid Semester -Once/ year -TAFE, universities -Focus: non service s oriented courses. -Upon/closer to graduation of postgraduate studies -Once/ year - Universities - Focus: on non-service oriented courses

Expected Outcome

Estimated Expense

ON CAMPUS TRAINING

More skilled worker in the field in next 5 years.

~$5-8,000/school/ event/year

EXPERIENCED LEADERSHIP PROGRAMS

More skilled workers in the specific sector of sales & marketing in the next 5 years ( specialising
in midmarket firms)

~$10 -15,000/ year

Source: Team's Analysis & GE Capital Mid-Market Report (2011, 2012)

Sub-Plans OUTSOURCING

Action Plan

Expected Outcome

Estimated Expense

-Collaborate with foreign recruitment agencies -Add-in services for mid market firms

Expense: -Solve the current ~$40,000/5 admin threat of limited access staff + workplace/ month to skilled workers in Revenue: next 5 years ~$5-10,000/ one outsource labour -This creates job opportunities for locals -$0 as well as foreigners

PROPOSE TO FEDERAL ABOUT SKILLED LABOUR ISSUES

-Take an example in Singapore, for every 4 locals hired, 1 foreigner can be outsourced.

Source: Team's Analysis & GE Capital Mid-Market Report (2011, 2012)

APPENDIX

10

Source: Team's Analysis & GE Australia and New Zealand Fact Sheet & GE Finance Thoughts, BetterTrades (2012)

Strengths

Weaknesses

Diversified Business Portfolio Dominant Lender for MidMarket High Level Of Expertise Strong Financial Position
Opportunities

S O

W T

More Than 60% Profits Arriving From GE Capital Weak Revenue Growth Of Core Industrial Segments Gap Amongst Core Segments
Threats

Rising Asia Urbanization Environmental Regulation High Population Growth Mid Market Financing

Chinas Growth Falling Commodity Prices Access to Skilled Worker Long term AUD Strength

11

Source: Team's Estimation & GE Capital Investor Meeting Presentation (2011)

6%
willing to M&A with foreign firms

55%
will likely go to the market next to raise capital

26%
consider Australia & NZ are biggest opportunities

12

Source: Team's Analysis & Mid-market China Investment Survey, Pillsbury Law (2011)

We have discussed about:

Slide 2: GE ANZ Capital Structure Analysis Slide 3: GE ANZ Capital Sources of Financing Analysis Slide 4: Australian Mid-Market Financing Analysis Slide 5 & 6: Strategy to improve GEs Financial Position Slide 7 & 8: Strategy to gain more Skilled Labour

Appendix:
Slide 10: Imbalance of GE Australia & NZ Segmentation Slide 11: GE Australia & NZ SWOT Slide 12: Opportunities with Chinas Mid-Market

Thank you very much