Credit Suisse Financial Services Conference
February 8, 2006
Exhibit 99.1
Notices
Forward Looking Statements
Certain statements made in this presentation that are not historical facts may constitute "forward-looking" statements under the Private
Securities Litigation Reform Act of 1995, including those that are signified by words such as "anticipate", "believe", "expect", "estimate",
“target”, and similar expressions. These forward-looking statements reflect the current views of CIT and its management and are
subject to risks, uncertainties, and changes in circumstances. CIT's actual results or performance may differ materially from those
expressed in, or implied by, such forward-looking statements. Factors that could affect actual results and performance include, but are
not limited to, potential changes in interest rates, competitive factors and general economic conditions, changes in funding markets,
industry cycles and trends, uncertainties associated with risk management, risks associated with residual value of leased equipment,
and other factors described in our Form 10-K for the year ended December 31, 2004 and our Form 10-Q for the quarter ended
September 30, 2005. CIT does not undertake to update any forward-looking statements.
Non-GAAP Financial Measures
The data provided in this presentation have been modified from our previously reported periodic data, including but not limited to,
exclusion of certain non-core transactions and non-recurring events, because management believes that the data presented herein
better reflects core operating results. As such, the data may vary from comparable data reported in CIT’s forms 10-K and 10-Q.
This presentation includes certain non-GAAP financial measures, as defined in Regulation G promulgated by the Securities and
Exchange Commission. Any references to non-GAAP financial measures are intended to provide additional information and insight into
CIT's financial condition and operating results. These measures are not in accordance with, or a substitute for, GAAP and may be
different from or inconsistent with non-GAAP financial measures used by other companies.
For a reconciliation of these non-GAAP measures to GAAP and a list of the transactions and events excluded from the data herein,
please refer to the appendix within this presentation or access the reconciliations through CIT's Investor Relations website at
investor.relations@cit.com.
Data as of or for the period ended December 31, 2005 unless otherwise noted.
2
A Compelling Investment Opportunity
Differentiated strategy focused on global middle-market opportunities
Well positioned to grow in a fragmented market place
Reinvigorated sales and marketing platform focused on high quality
revenue growth
World class credit and risk management capabilities
Strong business momentum heading into 2006
3
3
2005 – A Record Year
Very strong credit performance
0.60%
0.91%
Net Charge-offs
Increased 160 basis points
14.2%
12.6%
ROE
Exceeded 16% target
16.5%
13.9%
ROTE
Record earnings, up 23%
$882 M
$720 M
Net Income
Record asset levels
$63 B
$53 B
Managed Assets
Record new business originations
$32 B
$24 B
Volume
Comment
2005
2004
Metric
4
2005 – A Strategic Year
Performed rigorous strategic assessment of our business
Realigned portfolios around market sectors
Invested in high return / high growth opportunities
Acquired three businesses
Ordered 39 aircraft valued at $2.8 billion
Created Strategic Advisory Services group to accelerate fee income growth
Divested $1.7 billion of low return / low growth businesses
Reinvigorated sales culture
Enhanced shareholder value
Completed $500 million share repurchase program
Increased quarterly dividend by 25%
5
2005 – A Year of Improving Returns
Improving
Reflects student lending
Exceeds hurdle
Improving
Improving
Exceeds hurdle
Exceeds hurdle
Comment
14.2%
12.6%
Overall CIT ROE
9.4%
14.9%
Specialty Finance – Consumer
23.8%
21.8%
Specialty Finance – Commercial
10.5%
8.0%
Equipment Finance
11.3%
10.5%
Transportation Finance
19.3%
22.2%
Corporate Finance
27.1%
25.7%
Trade Finance
2005
2004
Segment
6
New Alignment Better Serves Customers
Provides factoring
and other trade
products to
companies in
retail supply
chain, with
increasing
international focus
Trade
Finance
Provides longer-
term, large ticket
equipment, leases
and
other secured
financing to
companies in rail
and aerospace
industries
Transportation
Finance
Provides
lending, leasing
and other
services to
middle-market
companies, with
a focus on
specific
industries
Corporate
Finance
Provides financing
solutions to
manufacturers
and distributors
around the globe
Vendor
Finance
Provides
secured loans to
consumers and
small businesses,
leveraging broker
and intermediary
relationships
Consumer/
SBL
Specialty Finance
($29 billion)
Commercial Finance
($34 Billion)
7
Specialty Finance
Tom Hallman
Home
Lending
Healthcare
Industrial
Equipment
Office
Products
Technology
Student
Loan
Xpress
Small
Business
Lending
Specialty Finance Overview
Vendor Finance
($13 billion / 30+ countries)
Consumer / Small Business
($16 billion / 50 U.S. states)
Global Insurance Services
CIT Bank
9
Intermediary relationship management
Technology / credit scoring
Servicing expertise
Attractive returns
Counter-cyclical with commercial businesses
Liquid assets
Scalable
Fragmented
Government guaranteed
Consumer and Small Business Characteristics
Match Our Core Competencies
Markets
Capabilities
Value to CIT
10
We deliver value-added lending solutions to mortgage brokers
via a national network of sales offices providing a
comprehensive set of competitive products through
superior customer facing technology and servicing capabilities
Home Lending: At-a-Glance
$6.9 B volume
236 sales
professionals
Over 4,600 relationships
$9.2 B managed assets
11
Home Lending Portfolio Strategy
Broker
Originations
Sell non-target demographics
Secondary Market
Sales
Acquire portfolios opportunistically
Disciplined Risk
Management
Secondary Market
Purchases
Hold target demographics in portfolio
12
Average FICO: 633
89% owner-occupied
100% appraisal review
92% of loans are first liens
No negative amortization loans
Disciplined lending standards define
a sustainable target market
Source: SMR
2004 Sub-prime Broker Originations
Focused Target Market
CIT Target
Market
($80 B)
Total Market = $286 B
13
Strong Portfolio Demographics
81%
80%
77%
Loan to Value
Loan characteristics:
Borrower characteristics:
72%
Updated Loan
to Value at 7/31/05
43%
72%
86%
% Fixed
$118K
$87K
$61K
Loan size
9
9
11
Length of residence
9
9
10
Length of employment
40%
38%
37%
Debt to income
633
625
624
FICO
12/31/99
12/31/03
12/31/05
14
14
Low Delinquency vs. Competitors
Source: Loan Performance Service
60+ Delinquency Comparison by Geography
CIT
Sub-prime industry
15
Well-Positioned Against Market Risks
Increased delinquency
and defaults
Primary impact on higher
value areas and coastal
regions
Decrease in
Housing Values
Increase in
Unemployment
Rise in Interest
Rates
Defaults due to increasing
payments (for floating loans)
Disciplined ARM underwriting
No option ARM or negative
amortization products
Average loan size = $118K
CLTV = 72%*
Geographic diversification
Low participation in resort markets
Impact
CIT Position
*Updated loan to value at 7/31/05
Average customer
9 years in residence
9 years in current job
16
We deliver a broad range of student lending products and
services with distinctive borrower benefits to educational
institutions through a network of dedicated relationship
managers supported by an efficient centralized processing
and servicing capability
Student Loan Xpress: At-a-Glance
$2.7 B volume*
45 sales
professionals
881 partner schools;
direct channels
$5.3 B managed assets
*Reflects full year 2005
17
Drive growth in school channel
Enhance web leadership
Broaden direct-to-consumer
product offering
Build best-in-class servicing
capabilities
Capitalize on cross-sell
opportunities
Student Loan Xpress Strategy
18
18
Strong Growth
Direct Channel
Volume
$1.7 B
$2.7B
School Channel
$1.0 B
$0.5 B
$1.1 B
$1.6 B
19
19
Regulatory Update
Key 2006 student loan reauthorization provisions
Negative
Reduces lender insurance by 1 percentage point
Positive/Negative
Eliminates School as Lender rule
Neutral
Maintains current fixed rate structure
Positive
Extends PLUS loans to graduate and professional students
Positive
Increases loan limits
Open legislative items
Positive
Fair Credit Reporting Act
Very Positive
Elimination of Single Lender rule
20
2006 Expectations
Reach 1000+ partner schools
Increase school channel volume by 50%
Complete servicing transfer
Continued improvement in returns
Double school channel assets
21
Specialty Finance: Strategic Summary
Vendor
Finance
Consumer/
Small Business
Lending
Broaden vendor base
Penetrate and expand existing relationships globally
Scale global servicing platforms
Expand vendor business in China by leveraging our
market-leading expertise
Increase organic originations in Home Lending
Continue expansion of Student Loan Xpress’
school channel
Accelerate growth in Small Business Lending
Leverage CIT Bank deposit-taking capability
Broad-based build out of global sales capabilities
22
Continuing The Momentum
Jeff Peek
2006 Priorities
Execute upon our growth strategies
Focus on productivity through technology
Maintain traditional disciplines
24
Sales Force Execution is Key to Growth
Established a
corporate sales
office providing
direction and
oversight
Designated
Chief Sales
Officers in
all business
units
Implemented a
company wide
customer
management
system,
Salesforce.com
Aligned our sales
incentive plans
with growth
strategies
25
2006 Growth Drivers
Healthcare
Asset
Generation
Strategic Advisory Services
Fee
Generation
Syndications
Communications, Media &
Entertainment
Global Sponsor Finance
Aerospace
Student Loan Xpress
International
Global Insurance
Restructuring
26
International Growth Agenda
Continue to build upon aerospace platform
Scale pan-European vendor operations
Expand Trade Finance (factoring) in Asia
Leverage recently acquired UK banking license
Build upon our leading equipment leasing position in China
27
Supporting Our Growth
Investing in technology to maximize the customer relationship
Salesforce.com (customer relationship database)
Credit adjudication and risk analysis software
Web-based applications
Re-directing investment from back-end to front-end
Front-end
Back-end
2004
2005
Longer Term
28
Furthering Commitment to Traditional Disciplines
Credit
Maintain prudent reserve position
Expand syndication and portfolio management activities to manage excess risk
Expect 2006 credit losses to be less than 80 basis points
Funding
Continue to match fund the portfolio
Increase funding from international capital markets
Leverage CIT Bank’s deposit-taking capability
Capital
Drive portfolio optimization
Explore further capital structure efficiencies
Continue to return capital to shareholders
29
2006 – The Year of Execution
Clearly defined our strategic
imperatives by business
Augmented leadership
Re-aligned around the customer
Rounded out our products and service
offerings
Energized the sales force
Organic volume benefits from the hiring
of sales professionals
Non-spread income reflects addition of
Strategic Advisory Services
Efficiency improves as revenue growth
accelerates
Funding diversity enhanced by deposit
base growth
Portfolio initiatives result from capital
discipline
2005 Actions
2006 Drivers
30
2006 Earnings Guidance
Target**
15%
$4.65 - $4.75
ROE
EPS*
*Includes estimated stock options expense of $0.08-$0.10 per share
**Guidance as provided on January 18, 2006. Reproduction of this slide should not be construed as an affirmation or update of that guidance.
31
Continuing The Trend
ROTE
Earnings Per Share
32
Appendix
33
Corporate History
Dai-Ichi Kangyo
Bank acquired 60%
of CIT from
Manufacturers
Hanover
CIT Financial
Corporation,
company’s
industrial
financing entity,
was incorporated
CIT founded as
Commercial Credit
and Investment
Company by Henry
Ittleson in St. Louis
CIT launched a 20% IPO to
acquire from DKB its option
to purchase the 20%
interest owned by Chase
Manhattan. CIT again listed
on the NYSE (“CIT”)
Albert R. Gamper, Jr.,
named Chairman and
CEO of CIT.
CIT completed 100%
initial public offering
(NYSE: CIT)
Tyco International
acquired CIT
CIT acquired
Newcourt Credit
Successful CIT secondary stock
offering reduced DKB’s stake to
approximately 44%, with balance
of shares held publicly
1997
Chemical Bank merged with
Chase Manhattan. CIT
ownership was 80% by DKB
and 20% by Chase
Manhattan
Dai-Ichi Kangyo Bank
acquired an additional
20% of CIT from
Chemical Bank
Manufacturers
Hanover
purchased CIT
from RCA
CIT went public and
was listed on NYSE.
The company had 600
employees and assets
of $44.7 MM
July
2002
June
2001
July
2000
CIT was added
to the S&P 500
Index
1999
1998
1996
1995
1989
1987
1984
1980
RCA acquired
CIT
1942
1924
1908
July
2004
Jeff Peek named
President & CEO
CIT was added
to the S&P 500
Index
October
2004
January
2005
Jeff Peek named
Chairman & CEO
34
Board of Directors
2005
Seymour Sternberg
2005
Timothy M. Ring
2004
Gary Butler
2003
Lois M. Van Deusen
Chair
2003
John R. Ryan
2003
Marianne Miller Parrs
2003
William M. Freeman
Chair
Lead
2002
Peter J. Tobin
Chair
2002
Thomas H. Kean
2003
Jeffery M. Peek
Nominating &
Governance
Compensation
Audit
Board Member
Board Committees
Independent
Directors
Member
Since
35
Executive Leadership
Lawrence A. Marsiello
Vice Chairman
Chief Credit Officer
Joined CIT in 1974
Corporate Credit
Risk Management
Joseph M. Leone
Vice Chairman
Chief Financial Officer
Joined CIT in 1983
Treasury
Accounting
Tax
Investor Relations
M&A
Information Technology
Thomas B. Hallman
Vice Chairman
Specialty Finance
Joined CIT in 1995
Vendor Finance
Consumer/Small
Business Lending
Frederick E. Wolfert
Vice Chairman
Commercial Finance
Joined CIT September 2004
Trade Finance
Corporate Finance
Transportation Finance
Walter J. Owens
EVP & Chief Sales and
Marketing Officer
Joined CIT March 2005
Sales
Marketing
Seasoned, balanced management team
Jeffrey M. Peek
Chairman & CEO
Joined CIT September 2003
36
Broad and Diverse Portfolio
Geography
Northeast
Europe and Asia
Canada
Southwest
Southeast
Midwest
West
*No other collateral type or industry served greater than 3%
Manufacturing
Commercial Air
Home Lending
Transportation
Services
Consumer Other
Construction
Wholesale
Healthcare
Other*
Retail
Education Lending
Industry
37
Growth Indicators
Industrial Production
Car Loadings
Oil Prices
Capacity Utilization
Capital Spending
C & I Loan Growth
Bankruptcy Filings
Consumer Confidence
Government Sponsorship
7(a) Funding Levels Switch
Home Prices
Mortgage Applications
PC Sales
IP – Telephony Sales
C & I Loan Growth
Construction Spending
Equipment Finance
Consumer Confidence
Small Business Lending
Cost of Education
Student Loan Xpress
Restructuring Activity
LBO Activity
Asset Based Lending
Coal Production
Grain Yield
Rail
Revenue Passenger Miles
Global Economic Growth
Air
Retail Sales
Consumer Credit Growth
Factoring
Interest Rates
Consumer Confidence
Home Lending
Capital Spending
GDP
Vendor Finance
Key Data Points
38
Portfolio Composition
Commercial Aerospace
Aircraft
Net Investment
100.0%
215
100.0%
5,951.9
1.4%
3
1.1%
67.7
Capital Leases
3.3%
7
2.3%
135.2
Tax-Op. Leveraged Leases
6.0%
13
3.2%
189.8
Loans
4.7%
10
3.9%
232.1
Leveraged Leases
84.6%
182
89.5%
5,327.1
Operating Leases
%
Number
%
$ millions
157
Millions
Top US exposure
277
Millions
Top exposure
Planes
Years
Europe
Asia Pacific
North America
Latin America
Africa / Middle East
Boeing
Airbus
Other
Narrow
Intermediate
Wide
Other
Grouping
44.5%
54.9%
0.6%
Manufacturer
10
Aircraft on the ground
6
Weighted average age
39.4%
26.4%
20.9%
9.0%
4.3%
Geographic diversity
72.8%
22.6%
4.0%
0.6%
Body type
%
Category
0
5
0.6
2009+
14
66
3.3
Total $
0
19
0.8
2008
0
23
1.0
2007
14
19
0.9
2006
Placed
Number
Amt ($B)
Year
Portfolio Statistics
Remaining Order Book
39
International Operations
$13.2 (21% of CIT)
$1.4
$0.6
$1.8
$4.7
$4.7
Managed Assets (billions)
Total
Aerospace
Vendor Finance
Other
Aerospace
Vendor Finance
Australia
Aerospace
Trade Finance
Vendor Finance
Asia
Aerospace
Corporate Finance
Vendor Finance
Europe
Aerospace
Corporate Finance
Equipment Finance
Trade Finance
Vendor Finance
Canada
Primary Businesses
Country
1,500 employees servicing international operations
40
Effective Matched Funding
3.4 years
44%
$20B Debt
2.8 years
49%
$26B
Fixed
$26B Debt
Amount
Funding (after swaps)
56%
Portfolio
Term
Term
Portfolio
Amount
4.3 years
3.2 years
51%
$26B
Floating
Assets
$6B Equity
Margin at Risk
Value at Risk
After-tax impact of $15 million (liability sensitive)
After-tax impact of $51 million (asset sensitive)
Risk Metrics*
*Sensitivity to immediate 100 basis point rate increase
41
Leasing Businesses
Utilization of Net Operating Loss
Dublin Aerospace Initiative
Improved International Vendor Profitability
Efficient Tax Management
$479
$483
Accounting Provision for Taxes
$100 (E)
$115
Cash Taxes Paid
</= 33%
35%
39%
Effective Tax Rate
2006 (E)
2005
2004
Income Taxes
Why it is decreasing
Why cash is lower
42
Non-Core Items
0.08
17.0
0.0
Commercial
Provision for income taxes
Reversal of deferred tax liability
Q4
2005
0.08
17.2
32.0
Corporate
Other Revenue
Gain on Restatement of select derivative transactions
Q1
2005
0.13
28.4
48.3
Corporate
Other Revenue
Gain on Restatement of select derivative transactions
Q2
2005
(0.04)
(5.7)
(14.3)
Corporate
Other Revenue
Loss on Restatement of select derivative transactions
Q3
2005
(0.06)
(12.9)
(22.7)
Corporate
Other Revenue
Loss on select derivative transactions
Q4
2005
(0.03)
(6.7)
(11.0)
Corporate
Operating Expenses
Early termination fee on NYC lease / Legal Settlement
Q4
2005
0.13
26.8
44.3
Specialty Finance
Other revenue
Gain on sale of micro-ticket leasing point of sale unit
Q4
2005
0.08
17.6
0.0
Commercial Finance
Provision for income taxes
Release of international tax reserves
Q3
2005
(0.06)
(11.9)
(20.0)
Specialty Finance
Other revenue
(Loss) on sale of manufactured housing
Q3
2005
(0.25)
(52.9)
(86.6)
Commercial Finance
Other revenue
(Loss) on sale of commercial and business aircraft
Q3
2005
0.34
69.7
115.0
Corporate
Other revenue
Gain on sale of real estate investment
Q3
2005
(0.02)
(4.4)
(6.8)
Corporate
Other revenue
Retained interest impairment from hurricanes Katrina and Rita
Q3
2005
(0.11)
(23.3)
(35.9)
Corporate
Provision for credit losses
Reserves for hurricanes Katrina and Rita
Q3
2005
(0.08)
(16.5)
(25.2)
Corporate
Provision for restructuring
Provision for restructuring
Q2
2005
0.07
14.4
22.0
Commercial Finance
Other revenue
Gain on sale of business aircraft
Q2
2005
(0.04)
(9.3)
(15.7)
Specialty Finance
Other revenue
(Loss) on sale of manufactured housing
Q4
2004
(0.04)
(8.7)
(14.0)
Corporate
Other revenue
(Loss) on venture capital investments
Q4
2004
0.12
26.8
43.3
Corporate
Provision for credit losses
Release of telecom reserves
Q4
2004
0.12
25.9
41.8
Corporate
Gain on redemption of debt
Gain on call of PINEs debt
Q1
2004
(0.17)
(37.5)
(60.5)
Corporate
Other revenue
Loss on venture capital investments
Q4
2003
0.15
31.2
50.4
Corporate
Gain on redemption of debt
Gain on call of PINEs debt
Q4
2003
EPS Impact
After-Tax
Pre-Tax
Group
P&L Line Item
Item Description
Impact on Income
43
Non-GAAP Reconciliation
$ 6,158.6
252.0
500.0
5,406.6
(1,011.5)
(17.0)
(27.6)
$ 6,462.7
$ 51,392.9
(4,187.8)
$ 55,580.7
$ 62,866.4
7,285.7
55,580.7
30.2
1,620.3
9,635.7
$ 44,294.5
12/31/2005
$ 5,731.0
Total Tangible stockholders' equity
253.8
Preferred capital securities
-
Preferred Stock
5,477.2
Tangible common stockholders' equity
(596.5)
Goodwill and intangible assets
(8.5)
Unrealized (gain) loss on securitization investments
27.1
Other comprehensive loss relating to derivative financial instruments
$ 6,055.1
Total common stockholders' equity
Total Tangible stockholders' equity:
$ 41,313.6
Earning assets
(3,847.3)
Credit balances of factoring clients
$ 45,160.9
Total financing and leasing portfolio assets
Earning assets:
$ 53,470.6
Managed assets
8,309.7
Securitized assets
45,160.9
Total financing and leasing portfolio assets
181.0
Equity and venture capital investments (included in other assets)
1,640.8
Finance receivables held for sale
8,290.9
Operating lease equipment, net
$ 35,048.2
Finance receivables
Managed assets:
12/31/2004
Non-GAAP financial measures disclosed by management are meant to provide additional information and insight relative to trends in the business to investors and, in certain cases, to
present financial information as measured by rating agencies and other users of financial information. These measures are not in accordance with, or a subsitute for, GAAP and may
be different from, or inconsistent with, non-GAAP financial measures used by other companies.
44
Financial Statements
211,017
206,059
Number of shares - basic (thousands)
-
500.0
Preferred Stock
$ 51,111.3
$ 63,386.6
Total Liabilities and Stockholders' Equity
6,055.1
6,962.7
Total Stockholders' Equity
(63.8)
(596.1)
Less: Treasury stock, at cost
(58.4)
115.2
Accum. other comprehensive income (loss)
(4,499.1)
(3,691.4)
Accum. deficit
10,674.3
10,632.9
Paid-in capital
215,054
210,734
Number of shares - diluted (thousands)
2.1
2.1
Common stock
$ 3.50
$ 4.44
Diluted earnings per share
Stockholders' Equity:
$ 3.57
$ 4.54
Basic earnings per share
40.4
49.8
Minority interest
Earnings per share
45,015.8
56,374.1
Total Liabilities
3,443.7
4,321.8
Accrued liabilities and payables
753.6
$ 936.4
Net income
3,847.3
4,187.8
Credit balances of factoring clients
-
(12.7)
Preferred stock dividends
37,724.8
47,864.5
Total debt
$ 753.6
$ 949.1
Net income before preferred stock
253.8
252.0
Preferred capital securities
(1.1)
(3.3)
Minority interest, after tax
-
4,048.8
Non-recourse, secured borrowings
(483.2)
(464.2)
Provision for income taxes
21,715.1
22,853.6
Fixed-rate senior unsecured notes
1,237.9
1,416.6
Income before provision for income taxes
11,545.0
15,485.1
Variable-rate senior unsecured notes
41.8
-
Gain on redemption of debt
$ 4,210.9
$ 5,225.0
Commercial paper
-
25.2
Provision for restructuring
Debt:
1,012.1
1,113.8
Salaries and general operating expenses
LIABILITIES AND STOCKHOLDERS' EQUITY
2,208.2
2,555.6
Operating margin
$ 51,111.3
$ 63,386.6
Total Assets
2,713.7
2,647.8
Other assets
887.1
1,137.4
Other revenue
596.5
1,011.5
Goodwill and intangible assets, net
1,321.1
1,418.2
Net finance margin after provision
1,228.2
1,139.9
Retained interests
214.2
217.0
Provision for credit losses
2,210.2
3,658.6
Cash and cash equivalents
1,535.3
1,635.2
Net finance margin
1,640.8
1,620.3
Finance receivables held for sale
965.4
968.0
Depreciation on op. lease equipment
8,290.9
9,635.7
Operating lease equipment, net
2,500.7
2,603.2
Net finance income
34,431.0
43,672.8
Net finance receivables
1,260.1
1,912.0
Interest expense
(617.2)
(621.7)
Reserve for credit losses
$ 3,760.8
$ 4,515.2
Finance income
$ 35,048.2
$ 44,294.5
Finance receivables
Financing and leasing assets:
2004
2005
ASSETS
December 31,
December 31,
2004
2005
Year Ended
December 31,
December 31,
Balance Sheet
Income Statement
45