Exhibit 99
Certain of the following information, which was set forth in the Analysts'
Presentation, including, without limitation, that concerning the financial
projections of the combined companies, the business and operating strategy of
the combined companies, CIT's prospective liquidity, the growth of the combined
companies' business, the reduction in the combined companies' expenses, the
intent to reduce the combined companies' volume of securitizations and the
overall anticipated effect on CIT of the proposed business combination,
constitutes forward-looking statements concerning the combined companies'
operations, economic performance and financial condition. Because such
statements reflect risks and uncertainties, actual results may differ from those
expressed or implied by such forward-looking statements. Factors that could
cause such differences include but are not limited to risks of economic slowdown
or downturn, risks inherent in changes in the prevailing interest rates,
unanticipated difficulties in combining the management, operations or cultures
of CIT and Newcourt, cost savings that are not realized or are not realized
within the time anticipated, risks associated with the value and recoverability
of leased equipment, adequacy of credit reserves for credit losses, funding
opportunities and borrowing costs, changes in regulations governing the combined
companies' business and operations, competitive factors, issues associated with
year 2000 compliance and uncertainties associated with risk management,
including credit risk management, asset/liability management and interest rate
risk management.
Analysts' Presentation
CIT disclosed the following financial targets:
o GAAP Accretive 2-3% in 2000 and 10%+ in 2001
o 15%+ EPS growth
o 15%+ return on tangible common equity
o Securitization activity reduced to less than 15% of total funding by year
2000
o Synergies
$150 million in operating expense savings phased in 50% in 1999 and
100% in 2000
70+ bps funding advantage for Newcourt on-balance sheet assets
CIT also disclosed the following financial statistics:
1998A
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CIT Newcourt Pro forma
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($ millions)
Market capitalization(1) $ 5,000 $ 4,200 $ 9,200
Managed finance assets 26,200 23,600 49,800
Total equity(2) 2,950 3,050 7,250
Tangible equity 2,740 1,820 4,560
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(1) Based on closing prices as of March 5, 1999. Newcourt pro forma for
exchange ratio
(2) Includes preferred equity. Pro forma adjusted to include $1.2 billion in
additional equity from the transaction
The following reflects CIT management's pro forma financial projections
(based upon I/B/E/S projections) for the combined business:
1999E 2000E 2001E
----- ----- -----
Net income -I/B/E/S
CIT $380 $430 $490
Newcourt 280(1) 350 420
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Combined 660 780 910
After-tax impact of transaction --
Management Adjustments
Cost savings (growth adjusted) 50 100 105
Net funding/securitization (2) (140) (35) 20
Incremental goodwill amortization (3) (35) (35) (35)
--------------------------
Net transaction benefits/(costs) (125) 30 90
Net Income $535 $ 810 $1,000
Original GAAP EPS(4) $2.65 $3.00
Pro forma GAAP EPS $2.71 $3.35
GAAP accretion(4) 2.3% 11.7%
Pro forma cash EPS $2.99 $3.63
Cash EPS accretion 9.8% 18.7%
Return on tangible equity 16% 17%
(1) Reflects full year of Newcourt earnings, not adjusted for mid-year
combination under purchase accounting
(2) Reflects lowered securitization gains offset by enhanced spread revenues
and estimated funding benefits
(3) Calculated based on CIT share price of $30.75 and 0.92 exchange ratio,
subject to adjustment based on CIT share price fluctuation. Assumes
35-year amortization schedule.
(4) Analysts' consensus EPS estimate of $2.65 for 2000 and an assumed EPS for
2001 based on analysts' consensus 13% long-term growth rate
The following reflects planned securitizations for the combined companies in
1999:
Per share figures
1999
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1st half 2nd half
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Earnings per share - I/B/E/S
CIT $1.14 $1.21
Newcourt 0.81 1.12
-------------------------
Adjusted combined EPS -- 1.21
After-tax impact of transaction
Cost savings -- 0.08
Securitization impact -- (0.47)
Incremental goodwill amortization -- (0.06)
-------------------------
Total -- (0.45)
Pro forma CIT EPS 1.14 0.76*
CIT share count (millions) 162 299
* Excludes impact of one-time CIT Group restructuring charge of
$0.12 - $0.23 per share.
The following reflects the securitization strategy for the combined companies:
o Significant reduction in funding through securitizations of receivables
originated by Newcourt
o Target 10% - 15% of net income from securitizations for the combined
company
o On-balance sheet funding lowers absolute cost of financing and increases
earnings quality and transparency
o Securitization program focused on funding efficiency, diversity, risk
transfer, and liquidity
o 1998 pro forma securitized assets as a percentage of managed assets is
24%, which is expected to be reduced to 21% in 1999 and 19% in 2000.
2000E
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($ millions)
Beginning tangible equity(1) 5,087
+ net income 810
+ goodwill amortization 82
- -dividend (90)
Ending tangible equity(1) 5,889
Internal capital generated 802
Internal capital generation rate (%) 16%
Managed asset growth (%) 16%
(1) Tangible equity = common and preferred equity less goodwill
The following presents pro forma capitalization for the combined companies:
$ millions
1998A
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CIT Newcourt Pro forma
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Total debt(1) 18,580 10,730 29,310
Total equity(2) 2,950 3,050 7,250
Tangible equity 2,740 1,820 4,560
Tangible common equity 2,490 1,820 4,310
Debt/equity 6.3x 3.5x 4.0x
Debt/tangible equity 6.8 5.9 6.4
Total equity/managed finance assets 11.3% 14.3% 15.2%
Tangible equity/managed finance assets 10.5 8.5 9.6
(1) Net of cash
(2) Includes preferred equity. Pro forma adjusted to include $1.2 billion in
additional equity from the transaction