GE Capital UK Funding Unlimited Company

Registration number: 367997

Interim Financial Report

Half-Year ended 30 June 2020 GE Capital UK Funding Unlimited Company Condensed interim financial report

Contents

Management Review 1 - 4

Statement of Directors' responsibilities 5

Independent Review Report 6 - 7

Condensed Statement of Comprehensive Income - Unaudited 8

Condensed Statement of Financial Position - Unaudited 9

Condensed Statement of Changes in Equity - Unaudited 10

Condensed Cash Flow Statement - Unaudited 11

Notes to the Condensed Financial Statements 12 - 35 GE Capital UK Funding Unlimited Company

Management Review

The Directors present their interim financial report for the period ended 30 June 2020.

Principal activities, business review and future developments GE Capital UK Funding Unlimited Company (the “Company”) is incorporated and tax resident in Ireland and operates as a financial services company.

The Company is a public unlimited company, it is a wholly owned indirect subsidiary of General Electric Company ("GEC"). The Company has established a Great British Pound (“GBP”) Commercial Paper (“Commercial Paper” or “CP”) Programme and a GBP Medium Term Note (“MTN”) Programme. The debt is principally listed on the London Stock Exchange. The purpose of these programmes is to obtain financing in the capital markets, to fund the operations of GEC affiliates. The Company’s intermediate parent in the capital structure, GE Capital International Holdings Limited ("GECIHL"), has guaranteed (assigned from General Electric Capital Corporation "GECC") the CP and MTN programmes of the Company thus reducing the risk to any potential investor and supporting the CP and MTN programmes. GEC, (rated BBB+), has also guaranteed the CP and MTN programmes of the Company thus reducing further the risk to any potential investor and supporting the CP and MTN programmes. During the period, GEC had sufficient liquidity and therefore had no requirement to participate in the CP market. The Directors have determined a number of metrics including total assets and the results of the Company to be key performance indicators. The total assets as at 30 June 2020 are set out in the Condensed Statement of Financial Position - Unaudited on page 9. The results for the period ended 30 June 2020 are set out in the Condensed Statement of Comprehensive Income - Unaudited on page 8 and the related notes. The Company's results before taxation have changed from a profit of $18 million for the period ended 30 June 2019 to a profit of $36 million for the period ended 30 June 2020. This is primarily driven by foreign exchange rates during the period. During the period, there is no fixed rate debt failed hedge effectiveness (30 June 2019 : $586 million).

During the period, a number of derivatives in qualifying hedging relationships were terminated and de-designated in qualifying hedging relationships to facilitate GEC to offer to buy and retire external debt ("debt buyback"). In April and May 2020, $650 million nominal of fixed rate debt were bought back for total cash consideration of $679 million. As a result of the early termination of derivatives and debt buyback noted above, $148 million nominal of debt is now no longer held for qualifying hedge relationships at 30 June 2020. On 19 December 2019, the Company signed an agreement to terminate the partnership with GE Capital UK Funding & Co. ("the Partnership") to take effect in 2020. The Partnership was formally dissolved on 3 March 2020. Since the Company does not at present hold a controlling interest in any undertaking, the Directors did not prepare consolidated financial statements. The comparative disclosures are also presented on a Company only basis.

On 11 March 2020, COVID-19 has been declared a pandemic by the World Health Organization, and most governments are taking restrictive measures to contain its further spread affecting free movement of people and goods. These events have no material effects on the Company's financial position in the 6 month period ending 30 June 2020. An increase in the average Probability of Default ("PD") of borrowers used for purposes of calculating the impairment loss provision on loans and advances to GEC affiliates has been reflected at 30 June 2020 - see Note 14(a) for further details. Management will continue monitoring and evaluating the effect of COVID-19 on the Company during the 2020 financial year.

1 GE Capital UK Funding Unlimited Company

Management Review (continued)

Going concern The future growth of the Company is dependent on the cash needs of the GEC Group and in particular GECIHL. The Directors have assessed the loan receivable positions and have concluded that the balances remain recoverable, an expected credit loss provision has been recognised on loans and advances to GEC affiliates held at amortised cost. Please see Note 14(a) for further details. The GEC Group does not expect the need for new long term debt issuances by the Company for the foreseeable future. As noted above, the entire debt issued by the Company through its CP and MTN arrangements is guaranteed by GEC and GECIHL.

The Directors have also considered the below among other factors in concluding that it is appropriate to prepare the Interim Financial Report on a going concern basis:

* The Company has substantial positive equity and it is linked to the GEC's cash fool, therefore has the resources to continue in business * GECIHL has guaranteed the Company's liabilities under its CP and MTN programmes, substantially mitigating liquidity risk * GEC has also guaranteed the Company's liabilities under its CP and MTN programmes, substantially mitigating liquidity risk.

CP and MTN’s The following table sets out the period on period increase/(decrease) MTNs issued, lending from GEC affiliates and lending to GEC affiliates. The Directors define GEC affiliates to be subsidiaries, associates and joint ventures of the wider GEC Group. The table has been calculated using the closing balances over the period. June 2020 December 2019 Period on period increase/(decrease) Liabilities Medium Term Notes (25)% (14)% Loans from GEC affiliates (100)% 544%

Assets Loans to GEC affiliates (41)% 18%

The following table sets out the weighted average maturities of MTN in issue at 30 June 2020 and 31 December 2019. The maximum maturity date on the medium term notes is 2039. 30 June 2020 31 December 2019 Medium Term Notes (floating) at amortised cost 17.69 years 18.19 years Medium Term Notes (fixed) in qualifying hedging relationships 12.64 years 10.33 years Medium Term Notes (fixed) held at amortised cost 1.25 years -

Principal risk and uncertainties The main financial risks that the Company is exposed to are credit risk, liquidity risk, market risk, credit risk and operational risk. The Directors are responsible for the oversight of the management of these exposures, as set out in Note 14.

2 GE Capital UK Funding Unlimited Company

Management Review (continued)

Credit risk GEC affliliates may experience difficulty in repaying loans. By carrying out comprehensive due diligence on each borrower the Company has been able to manage its exposure to credit risk and the Company experienced no defaults during the period. The closing impairment loss provision as a result of adopting IFRS 9 in the financial year ended 31 December 2019 was $6,299 thousand. This provision was re-measured to be $16,889 thousand at 30 June 2020. Please refer to Note 14 for further details. The Directors will continue to monitor the financial strength of its borrowers to ensure the Company’s exposure to the risk of default is minimized. Liquidity risk The Company has access to the cash pool of the wider GEC Group to fill any short-term liquidity requirements. See further analysis of liquidity risk at the period end at Note 14(b). Market risks The fair value of financial assets and liabilities may change due to interest rate volatility, credit spread changes and general market conditions. In an effort to ensure appropriate valuations were obtained, the Company relied on independent pricing providers such as Bloomberg and models used by the wider GEC Group which primarily use observable market data as inputs. Such valuations necessarily involve judgments and uncertainties on the selection of inputs. Critical judgments and uncertainties surrounding valuations are discussed further in Note 14(c) to the condensed Financial Statements. Market risk - Foreign exchange risk The main financial risk of the Company is the exposure to foreign exchange (“FX”) risk. This risk arises during the current period, as some operations including loans and advances to GEC affiliates and all debt securities issued are in GBP while the functional currency of the Company is USD. During the period, the Group recorded an FX gain of $ 56 million (30 June 2019: gain $ 4 million) driven by movement in the GBP/USD rates. Market risk - Interest rate risk During 2020 interest rates remained at low levels. The Company, as a funding company, is exposed to interest rate volatility. Through the use of derivatives the Company is generally able to reduce interest rate mis-matches and in so doing reduce its interest rate risk. The Directors monitor interest rate exposure. See Note 14(c) for analysis of interest rate exposure at period end. Operational risk Operational risk is the risk of direct or indirect loss arising from a wide variety of causes associated with the Company’s processes, personnel, technology and infrastructure, and from external factors other than credit, market and liquidity risks such as those arising from legal requirements and generally accepted standards of corporate behaviour. Operational risks arise from all of the Company’s operations and are faced by all business entities.

The Company seeks to manage operational risk so as to balance the avoidance of financial losses and damage to the Company’s reputation with overall cost effectiveness and to avoid control procedures that restrict initiative and creativity. The Directors are responsible for the development and implementation of controls to address operational risk.

3 GE Capital UK Funding Unlimited Company

Management Review (continued)

This responsibility is supported by the development of overall GEC standards for the management of operational risk in the following areas: • requirements for appropriate segregation of duties, including the independent authorisation of transactions; • requirements for the reconciliation and monitoring of transactions; • compliance with legal requirements; • documentation of controls and procedures; • requirements for the periodic assessment of operational risks faced, and the adequacy of controls and procedures to address the risks identified; • training and professional development; and • ethical and business standards.

Compliance with the Company standards is supported by a programme of periodic reviews to ensure compliance with GEC Group risk management policies.

The Directors review the development, selection and disclosure of the Company’s critical accounting policies and estimates, and the application of these policies and estimates.

Dividends The Directors do not propose a dividend for the current period (30 June 2019: $Nil).

Related parties The Directors in place at period end were: Fergal Mullin, Timothy Lane, Robert Holmes, Thomas Geary (non-executive) and Michael Power (non-executive). In accordance with the Articles of Association, the Directors are not required to retire by rotation.

The Company’s related party transactions have seen an decrease in loans and advances to related parties of 41% and a decrease in loans and advances from related parties of 100%. The large decrease in loans and advances to and from related parties is due to the early redemption of external debt and repaid cashpool borrowings during the period. Audit committee The Company’s ultimate parent, GEC, is a regulated entity that must meet certain requirements in accordance with its New York Stock Exchange listing. As a result, the GEC Group has internal audit and finance functions with responsibility for, amongst other things, the monitoring of the effectiveness of the GEC Group’s systems of internal control, internal audit and risk management. Nevertheless, the Directors having considered the matter, established an audit committee. The members of the Committee are Thomas Geary, Michael Power and Robert Holmes. Thomas Geary and Michael Power are non-executive Directors. There were no changes during the period.

Subsequent events On 25 September 2020, the Company bought back £1,235 thousand nominal of its 2038 maturity floating rate note for cash consideration of £1,236 thousand.

No other significant events affecting the Company occurred since the reporting date, which require adjustment to or disclosure in the condensed interim financial statements.

Independent Auditor Grant Thornton, Chartered Accountants and Statutory Audit Firm, have expressed their willingness to continue in office in accordance with Section 383 (2) of the Companies Act, 2014.

4 GE Capital UK Funding Unliniited ConrpanS, Stateme nt of Directors' responsibilities .fir the hulf-ys17v endcc{ 30 .Iune 2020

The Directors are responsible fbr preparing half-yearly financial report in accordance with the Disclosr.rre Cuidance and Transparency Rules ("the DTR") of the LIK's Financial Conduct Authority ("the UK FCA").

In preparing the cnndensed sct of financial statenrents included rvithin the half-yearly financial report, the directors are required to: - prepare and present the condensed set nf financial statenrents in accordance lvith IAS 34 Interinr Financial Reportiug as adopted by the EU. and the DTR of the ["rK FCA; - ensure tlre condensed set offinancial statements has adequate disclosures; - select and apply appropriate accounting policies; and - nrake accounting estimates that are reasonable in the circumstauces.

The Directors are responsible for designing, inrplenrentin* and uraintainirig such internal controls as they deternrine is necessary to enable the preparation of the corrderrsecl set of financial staten.rents that is free fronr nraterial rlisstatement whether due to fraud or error.

\\ie e rinilrrtr thal 1o the he st o1'our knrr.r lsclltc

( I) the condensed set of financial statemeats in the half-yearly' fiuancial report of GE Capital UK Funding Unlinrited Company ("the Conrpany") for the six rnonths ended 30 June 2020 ("the interirn financial infbrmation") which comprises coniprises the condensed statement of comprehensive income, the cotrdensed staten'rent of financial position. the condensed statemenls of changes in equiry. the condensed cash florv statenlerlt and the related explanatory notes, Irave been presented and prepared iu accordance with International Accounting Standard i4. Interim Financial Reporting. as adopted by the European Union and the DTR, (2) The interim financial infbrnration presented, as required by the DTR of the UK FCA. gives a true and fuir view of the assets, liabilities. flnancial position of the Companl,as at i0 June 2020 and its profit fbrthe period then ended. includes: a. an indication of important events thal have occurred during the tlrst 6 rnonths of the financial year, and their impact on the condensed set of financial statements; ancl b. a description of the principal risks arrd irnceftainties for the renraining 6 nronths of the financial year. c. details of any related part-v transactions that have rnaterialll, aft'ected tlre Company's fitrarrcial position or perfonnance in the six ntorlths ended 30 June 2020. and nraterial changes to related party transactions descritred in the Annual Report ibr the financial year eneled 3 I Dece nrber 20 I9.

'ffi-'On behalf oJ'the Board of f)ire ctors

Robert Holmes l.ergal ]lullin Director l)i rct'lo r

Date 29 Septernber 2020

Independent Review Report to GE Capital UK Funding Unlimited Company

Introduction We have been engaged by GE Capital UK Funding Unlimited Company (or the “Company”) to review the condensed set of financial statements included in the interim financial report for the six months ended 30 June 2020 which comprises the Condensed Statement of Comprehensive Income, the Condensed Statement of Financial Position, the Condensed Statement of Changes in Equity, the Condensed Cash Flow Statement and the related explanatory notes. We have read the other information contained in the interim financial report and considered whether it contains any apparent misstatements or material inconsistencies with the information in the condensed set of financial statements.

Directors’ responsibilities The interim financial report is the responsibility of, and has been approved by, the Directors. The Directors are responsible for preparing the interim financial report in accordance with the Disclosure Guidance and Transparency Rules of the United Kingdom’s Financial Conduct Authority.

As disclosed in note 2a, the annual financial statements of The Company are prepared in accordance with IFRS as adopted by the European Union. The condensed set of financial statements included in this interim financial report has been prepared in accordance with International Accounting Standard 34 “Interim Financial Reporting”, as adopted by the European Union.

Our responsibilities Our responsibility is to express to the Company a conclusion on the condensed set of financial statements in the interim financial report based on our review.

Scope of our review We conducted our review in accordance with International Standard on Review Engagements (UK and Ireland) 2410, “Review of Interim Financial Information Performed by the Independent Auditor of the Entity”, issued by the Financial Reporting Council (“ISRE 2410”). A review of interim financial information consists of making enquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with International Standards on Auditing (Ireland) and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.

Conclusion Based on our review, nothing has come to our attention that causes us to believe that the condensed set of financial statements in the interim financial report for the six months ended 30 June 2020 is not prepared, in all material respects, in accordance with International Accounting Standards 34 “Interim Financial Reporting”, as adopted by the European Union and the Disclosure Guidance and Transparency Rules of the United Kingdom’s Financial Conduct Authority.

Independent Review Report to GE Capital UK Funding Unlimited Company (continued)

The purpose of our report and to whom we owe our responsibilities This report is made solely to the Company in accordance with ISRE 2410. Our review has been undertaken so that we might state to the Company those matters we are required to state to it in this report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the Company for our review work, for this report, or for the conclusions we have reached.

John Glennon For and on behalf of Grant Thornton Chartered Accountants & Statutory Audit Firm 13 – 18 City Quay Dublin 2 Ireland

Date: 29th September 2020

7 GE Capital UK Funding Unlimited Company

Condensed Statement of Comprehensive Income - Unaudited for the half-year ended 30 June 2020

30 June 2020 30 June 2019 Note $'000 $'000

Interest income 4 98,751 67,876 Interest expense 5 (73,499) (77,568) Net interest income/(expense) 25,252 (9,692)

Partnership income 8 - 27,852 Movement in provision for impairment 14 (10,590) 1,898 Fee and commission income 6 162 52 Fee and commission expense 7 (356) (290) Net fee and commission (expense)/income (10,784) 29,512

Income from shares in group undertakings 8 - 16,969 Net trading income including share of profit from associate 14,468 36,789 Net expense from financial instruments carried at fair value 10 (34,943) (21,864) Foreign exchange gain 9 56,198 3,768 Operating income/(expense) 21,255 (18,096)

Profit before income tax 35,723 18,693 Tax charge 11 - - Profit for the period 35,723 18,693 Total comprehensive income for the period 35,723 18,693

The accompanying notes form an integral part of these unaudited condensed interim financial statements.

8 GE Capital UK Funding Unlimited Company

Condensed Statement of Financial Position - Unaudited at 30 June 2020

30 June 2020 31 December 2019 Note $'000 $'000 Non-current assets: amounts falling due greater than one year Loans and advances to GEC affiliates 40,000 40,000 Derivative assets held for qualifying hedging relationships 16 466,869 386,463 Derivative assets not in qualifying hedging relationships 16 9,931 - Current assets: amounts falling due within one year Cash and cash equivalents 12 - 3 Derivative assets held for qualifying hedging relationships 16 - 3,788 Derivative assets not in qualifying hedging relationships 16 31 114,146 Loans and advances to GEC affiliates 5,665,581 9,628,176

Total assets 6,182,412 10,172,576 Liabilities: amounts falling due within one year Loans and advances from GEC affiliates (7,671) (3,090,206) Debt securities issued 17 (199,309) (830,690) Other liabilities (350) (201) Net current assets 5,458,282 5,825,016

Total assets less current liabilities 5,975,082 6,251,479 Liabilities: amounts falling due after more than one year Debt securities issued 17 (3,818,570) (4,110,789) Net assets 2,156,512 2,140,690 Capital and reserves Share capital 70,495 70,495 Share premium 2,287,244 2,287,244 Undenominated capital reserves 18,766 18,766 Retained earnings (88,023) (103,845) Foreign exchange reserve (131,970) (131,970) Shareholders' equity 2,156,512 2,140,690

Total equity 2,156,512 2,140,690

The accompanying notes form an integral part of these unaudited condensed interim financial statements.

9 GE Capital UK Funding Unlimited Company

Condensed Statement of Changes in Equity - Unaudited for the half-year ended 30 June 2020

Foreign Share capital Share Capital Undenominated Retained exchange premiumContribution capital reserves earnings reserve Total $'000 $'000 $'000 $'000 $'000 $'000 $'000

Balance at 1 January 2019 70,495 2,287,244 19,101 18,766 (60,466) (131,970) 2,203,170 Total comprehensive income for the period - - - - 18,693 - 18,693 Capital contribution movement - - (21,194) - - - (21,194) Balance at 30 June 2019 70,495 2,287,244 (2,093) 18,766 (41,773) (131,970) 2,200,669

Balance at 1 January 2020 70,495 2,287,244 - 18,766 (103,845) (131,970) 2,140,690 Total comprehensive income for the period - - - - 35,723 - 35,723 Deemed distribution* - - - - (19,901) - (19,901) Balance at 30 June 2020 70,495 2,287,244 - 18,766 (88,023) (131,970) 2,156,512

* In prior years, the Company had advanced loans to other group companies at an interest rate that was not considered to correspond to market rates. The excess of interest over market rates was therefore treated as a capital contribution on initial recognition of these loans. A number of these were subsequently amended which reduced the excess of interest over market rates resulting in a reduction in capital contribution during the comparative period. On the renewal of the loan in the prior year, the new interest rate was below market rates and the difference between the interest rate and the market rate of interest was treated as a distribution. The interest rate on the loan was subsequently lowered during the period and the difference between this lower rate and the market rate of interest was recorded as a deemed distribution.

The accompanying notes form an integral part of these unaudited condensed interim financial statements.

10 GE Capital UK Funding Unlimited Company

Condensed Cash Flow Statement - Unaudited for the half-year ended 30 June 2020

30 June 2020 30 June 2019 Note $'000 $'000 Cash flows from operating activities Profit for the period 35,723 18,693 Adjustments for: Net interest income (25,252) 9,693 Impairments loss provision 10,590 - Foreign exchange (gain) 9 (56,198) (3,768) Change in loans and advances to GEC affiliates 3,986,301 (382,308) Change in interest in subsididiaries/partnership - (44,823) Change in derivative assets held for qualifying hedging relationships (142,778) (112,944) Fair value movement on fixed rate debt securities in qualifying hedging relationships 128,580 120,378 Change in accrued interest on debt securities issued (41,046) (1,996) Change in derivative assets held for trading (5,465) 22,926 Change in derivative liabilities held for trading - (14,363) Change in other liabilities 150 15,030 3,890,605 (373,482)

Interest received on assets and derivatives 113,140 115,861 Interest paid on liabilities and derivatives (198,288) (203,760) Derivative termination receipts 15,538 - Net cash provided/(used) by operating activities 3,820,995 (461,381) Cash flows from investing activities Change in interest in subsididiaries/partnership - (44,823) Net cash flows from investing activities - (44,823) Cash flows from financing activities Debt securities redeemed (645,446) (163,931) Change in loans and advances from GEC affiliates (3,077,268) 630,779 Net cash flows (used in)/generated from financing activities (3,722,714) 466,848

Net increase in cash and cash equivalents 98,281 5,467 Cash and cash equivalents at 1 January 12 3 3 Effect of exchange rate fluctuations on cash held (98,284) (5,467)

Cash and cash equivalents at 30 June 12 - 3

Effect of exchange rate fluctuations in 2020 and 2019 arises in the Condensed Cash Flow Statement due to activity denominated in GBP and large gross movements included within balances in the Cash Flow Statement.

11 GE Capital UK Funding Unlimited Company

Notes to the Condensed Financial Statements for the half-year ended 30 June 2020

1 Reporting entity GE Capital UK Funding Unlimited Company (the "Company") is an Irish incorporated, public unlimited company and is Irish tax resident. The unaudited condensed interim financial statements of the Company as at and for the six months ended 30 June 2020 comprise the Company financial performance and financial position. The Company is primarily involved in obtaining financing in the capital markets to fund the operations of the wider GEC Group.

2 Basis of preparation

(a) Statement of compliance

The unaudited condensed Financial Statements of the Company have been prepared in accordance with International Accounting Standard 34 Interim Financial Reporting, as adopted by the European Union (“EU”). Selected explanatory notes are included to explain events and transactions that are significant to an understanding of the changes in financial position and performance of the Company since the last annual consolidated financial statements as at and for the financial year ended 31 December 2019, which were prepared in accordance with International Financial Reporting Standards (“IFRS”) as adopted by the EU, and interpretations adopted by the International Accounting Standards Board (“IASB”), and under the requirements of Irish Company Law. The condensed interim Financial Statements for the six months ended 30 June 2020 are unaudited, but have been reviewed by the auditor whose report is set out on pages 6 and 7. The financial information presented herein for the period to 30 June 2020 does not amount to statutory Financial Statements that are required by Irish Company Law to be annexed to the annual return of the Company. The statutory Financial Statements for the financial year ended 31 December 2019 were annexed to the annual return and filed with the Companies Registration Office. The audit report on those statutory Financial Statements was unqualified and did not contain any matters to which attention was drawn by way of emphasis.

On 19 December 2019, the Company signed an agreement to terminate the partnership with GE Capital UK Funding & Co. ("the Partnership") to take effect in 2020. The Partnership was formally dissolved on 3 March 2020. Since the Company does not at present hold a controlling interest in any undertaking, the Directors did not prepare consolidated financial statements.

(b) Judgements and estimates

Preparing the interim financial report requires management to make judgements, estimates and assumptions that affect the application of accounting policies and the reported amounts of assets and liabilities, income and expense.

In preparing these unaudited condensed interim Financial Statements, significant judgements made by management in applying the Company’s accounting policies and the key sources of estimation uncertainty were the same as those applied to the Financial Statements as at and for the financial year ended 31 December 2019.

3 Significant accounting policies The same accounting policies, presentation and methods of computation have been followed in these unaudited condensed financial statements we were applied in the preparation of the Company financial statements for the financial year ended 31 December 2019.

12 GE Capital UK Funding Unlimited Company

Notes to the Condensed Financial Statements for the half-year ended 30 June 2020 (continued)

3 Significant accounting policies (continued)

Fair value estimation The Company's derivatives are carried at fair value and are classified as Level 2. There was no transfers between Level 2 and Level 3 of the fair value hierarchy during the period. The different levels have been defined as follows:

• Level 1: quoted prices (unadjusted) in active markets for identical assets or liabilities. • Level 2: inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly (i.e. as prices) or indirectly (i.e. derived from prices). • Level 3: inputs for the asset or liability that are not based on observable market data (unobservable inputs).

New currently effective requirements The below table lists the recent changes to IFRS that are required to be applied with the period beginning on 1 January 2020. The directors have assessed the impact of the below and do not determine to have a material impact on the unaudited condensed financial statements 2020. Effective date New standards or amendments Amendments to References to Conceptual Framework for in IFRS Standards 1 January 2020 Amendments to IAS 1 and IAS 8: Definition of Material Amendments to IFRS9, IAS 39 and IFRS 7: Interest Rate Benchmark Reform Definition of a Business (Amendments to IFRS 3)

Standards and interpretation not yet adopted A number of new standards, amendments to standards and interpretations have been issued but are not yet effective and have not been applied in preparing these unaudited condensed financial statements. These are set out below: Effective date New standards or amendments Amendments to IAS 1 Presentation of Financial Statements: Classification of 1 January 2022 Liabilities as Current or Non-current 1 January 2023 IFRS 17 Insurance Contracts available for optional Sale or Contribution of Assets between an Investor and its Associate or Joint adoption/effective date Venture (Amendments to IFRS 10 and IAS 28) deferred indefinitely

4 Interest income The following table details the interest income earned by the Company during the period. 30 June 2020 30 June 2019 $'000 $'000 Interest income from financial assets that are measured at amortised cost: Loans and advances to GEC affiliates 98,751 67,876 98,751 67,876

13 GE Capital UK Funding Unlimited Company

Notes to the Condensed Financial Statements for the half-year ended 30 June 2020 (continued)

4 Interest income (continued)

Interest income is earned on loans made by the Company directly to other GEC affiliates.

Movement in the period is primarily driven by an increase in average loans principal with GEC affiliate at Company level and foreign exchange rate fluctuations used to translate non-USD amounts.

5 Interest expense The following table details the interest expense incurred by the Company during the period. 30 June 2020 30 June 2019 $'000 $'000 Interest expense on debt securities issued: - in qualifying hedging relationships at adjusted amortised cost 113,453 108,397 - at amortised cost 309 364 Adjustment for the amortisation of fair value component of debt with associated with terminated derivative assets, or those no longer in a hedging relationship (63,566) (42,446) Interest expense on loans and advances from GEC affiliates 23,303 11,253 73,499 77,568

Interest expense on loans and advances to GEC affiliates relates to borrowings from affiliates in the capital structure, GE Capital European Treasury Services Ireland Unlimited Company and GE Capital Treasury Services (U.S.) LLC.

6 Fee and commission income 30 June 2020 30 June 2019 $'000 $'000 Commitment fee income from GEC affiliates 162 52 162 52

Increase in commitment fee income from GEC affiliates primarily driven by increase in undrawn facilities on loans and advances to GEC affiliates as a result of borrower repaying the principal of loan in the period.

14 GE Capital UK Funding Unlimited Company

Notes to the Condensed Financial Statements for the half-year ended 30 June 2020 (continued)

7 Fee and commission expense 30 June 2020 30 June 2019 $'000 $'000 Management fee expense to GEC affiliate 267 181 Service fee expense to indirect parent in the capital structure 89 109 356 290

The Company has a management service agreement and investment services agreement in place with GE Capital European Funding Unlimited Company ("GECEF"), a group company, the management fee charge above relates to services provided by GECEF.

Service fee expense relates to service charges paid to GE Capital US Holdings, Inc, an indirect parent in the capital structure.

8 Income from investment in Partnership and Group undertakings On 23 October 2019, the Company sold its interest in its directly-owned subsidiary GE Capital International 2 Limited ("GECI2") to the Company's immediate parent, GECIHL, and on 19 December 2019, the Company signed an agreement to terminate the Partnership to take effect in 2020. There is no Partnership income and income from shares in group undertakings earned by the Company during the 6 month period ending 30 June 2020. (2019: $27,852 thousand income earned from Partnership, $16,969 thousand from shares in group undertakings).

9 Foreign exchange gain 30 June 2020 30 June 2019 $'000 $'000 Foreign exchange gain 56,198 3,768 56,198 3,768

The foreign exchange ("FX") gain is driven by the translation of foreign currency denominated receivables and payables to USD at period end rates. Movement in the period driven by change in GBP/USD FX rates (31 December 2019 - 1.3257 v 30 June 2020 - 1.2281).

15 GE Capital UK Funding Unlimited Company

Notes to the Condensed Financial Statements for the half-year ended 30 June 2020 (continued)

10 Net expense from financial instruments carried at fair value 30 June 2020 30 June 2019 $'000 $'000 Fair value movement on interest rate swaps - in qualifying hedging relationships 183,274 124,755 - held for trading - (41) Fair value movement on fixed rate debt securities issued in qualifying hedging relationships (213,863) (126,507) Net expense from cross currency swaps carried at fair value (4,354) (20,071) (34,943) (21,864)

The portion of net income / (expense) from financial instruments carried at fair value relating to the ineffective portion of fair value hedges as at 30 June 2020 was $(6,413,205) (30 June 2019: $(913,680)).

During the period, a number of derivatives in qualifying hedging relationships were early terminated and de-designated in qualifying hedging relationships to facilitate the debt buyback. The effect of the transaction resulted in realising a gain on the terminated derivatives of $11 million, which had previously been recognised as an unrealised gain prior to the termination date.

During the period, GE offered to buy and retired external debt ("debt buyback"). The debt buyback was executed on 23 April and 19 May 2020. The effect of the transactions resulted in the terminated of $829 million nominal of derivatives in qualifying hedging relationship which were subsequently de-designated as the qualifying hedging relationships. The transaction resulted in $650 million nominal of fixed rate debt being bought back for total cash consideration of $679 million. This termination of the derivatives and debt buyback accounts for the decrease in fair value of movement of interest swap and debt securities in qualifying hedging relationships that can be seen in the above table.

11 Income tax charge

30 June 2020 30 June 2019 $'000 $'000 Analysis of charge/(credit) in the period

Current tax: Total current tax - -

Total tax charge in the Condensed Statement of Comprehensive Income - -

16 GE Capital UK Funding Unlimited Company

Notes to the Condensed Financial Statements for the half-year ended 30 June 2020 (continued)

12 Cash and cash equivalents 30 June 2020 31 December 2019 $'000 $'000 Cash and balances with banks - 3 - 3

There were no restricted cash balances at the period end (31 December 2019: USD Nil). Cash balances are held with Societe Generale, rated A (31 December 2019: A).

All 2020 and 2019 ratings are S&P long-term counterparty credit ratings as at 30 June 2020 (2019: 31 December 2019).

13 Deferred tax asset

A deferred tax asset is recognised only to the extent that it is probable that future taxable profits will be available against which the asset can be recovered. The Directors have considered the assumptions underpinning the recognition of the asset and as a consequence of the 10 April 2015 GEC announcement which reduced the need for new long term debt issuance for the foreseeable future and the change in functional currency to USD with the foreign exchange exposure. As a result, the Company has recorded no deferred tax asset for the period ending 30 June 2020, (31 December 2019: $Nil).

The Company has an unrecognized deferred tax asset at period end of $33,256,972 (31 December 2019: $43,015,649) which relates to losses carried forward.

14 Financial risk management Introduction and overview The Company has exposure to the following risks from the use of financial instruments:

(a) credit risk (b) liquidity risk (c) market risks (d) other price risk

This note presents information about the Company’s exposure to each of the above risks, the Company’s objectives, policies and processes for measuring and managing risk, and the Company’s management of capital.

The condensed interim Financial Statements do not include all financial risk information and disclosures required in the annual Financial Statements; they should be read in conjunction with the Company’s annual Financial Statements as at 31 December 2019. There have been no significant changes in the risk management department or in any risk management policies since the year end.

17 GE Capital UK Funding Unlimited Company

Notes to the Condensed Financial Statements for the half-year ended 30 June 2020 (continued)

14 Financial risk management (continued) Risk management framework The Directors have overall responsibility for the establishment and oversight of the Company’s risk management framework in line with the overall GEC risk management framework.

The Board of Directors has five members.

The Company’s risk management policies are based on the policies of the Company’s ultimate parent GEC and are established to identify and analyse the risks faced by the Company, to set appropriate risk limits and controls, and to monitor risks and adherence to limits. Risk management policies and systems are reviewed regularly to reflect changes in market conditions, products and services offered. The Company, through their training and management standards and procedures, aim to develop a disciplined and constructive control environment, in which all employees understand their roles and obligations. The Directors are responsible for monitoring compliance with the Company’s risk management policies and procedures, and for reviewing the adequacy of the risk management framework in relation to the risks faced by the Company. The Directors are assisted in these functions by GE Corporate Audit Staff and Internal Audit.

(a) Credit risk

Credit risk is the risk of financial loss to the Company if a customer or counterparty to a financial instrument fails to meet its contractual obligations, and arises principally from the Company’s loans and advances to GEC affiliates and derivative transactions which are entered into with GEC affiliates. For risk management reporting purposes the Company considers and consolidates all elements of credit risk exposure (such as individual obligor risk, default risk and country risk). The Directors monitor performance of borrowers and continually assess recoverability of loans (see points below). All loans and advances made by the Company are with GEC affiliates. All loans are uncollateralized.

Management of credit risk The Directors are responsible for the oversight of the Company’s credit risk in line with the overall GEC risk framework, including:

• Following GEC credit policies covering credit assessment, risk grading and reporting, documentary and legal procedures, and compliance with regulatory and statutory requirements; • Establishing the authorization structure for the approval and renewal of credit facilities; • Reviewing and assessing credit risk. The Directors assess all credit exposures prior to facilities being committed, and these facilities are subject to periodic review based on the overall risk associated as determined by Management.

For each annual review, a comprehensive due diligence is carried out on each borrower.

At 30 June 2020 the total carrying amount of lending exposed to credit risk in the Company amounted to $5,706 million (31 December 2019: $9,668 million).

18 GE Capital UK Funding Unlimited Company

Notes to the Condensed Financial Statements for the half-year ended 30 June 2020 (continued)

14 Financial risk management (continued) (a) Credit risk (continued)

As at 30 June 2020, the loans and advances to GECIHL was 34% (31 December 2019: 22%) of the total loan portfolio for the Company. As at 30 June 2020, the loans and advances to GE Financial Funding Unlimited Company ("GEFF") was 65% (31 December 2019: 78%) of the total loan portfolio for the Company. The Directors monitor the performance of GEC affiliates to assess the recoverability of the loans in line with the overall GEC risk framework. As at 30 June 2020, the Directors considers none of the loans and advances to that or other counterparties to be either past due or credit impaired.

The Company is also exposed to counterparty credit risk in relation to derivatives. The derivative counterparty is a GEC affiliate.

Other assets are comprised of management fees receivable from GEC affiliates and other accruals. Cash and cash equivalents are held with financial institutions rated A by Standard and Poor at the period end as per Note 12.

Loans with renegotiated terms Loans with renegotiated terms are loans that have been restructured due to the deterioration of the borrower’s financial position. No loans on the Condensed Statement of Financial Position - Unaudited as at 30 June 2020 were renegotiated during the period (31 December 2019: $Nil).

Allowances for impairment The Company establishes an allowance for impairment based on the ECL model as required by IFRS 9.

The following table provides information about exposure to credit risk and ECLs as at 30 June 2020:

Gross carrying Impairment loss In Thousand's of $ S&P rating Credit impaired amount allowance Low risk Loans and advances to GEC affiliates BBB- 5,705,581 (16,889) No Total 5,705,581 (16,889)

The following table provides information about exposure to credit risk and ECLs as at 31 December 2019 :

Gross carrying Impairment loss In Thousand's of $ S&P rating Credit impaired amount allowance Low risk Loans and advances to GEC affiliates BBB- 9,668,176 (6,299) No Total 9,668,176 (6,299)

19 GE Capital UK Funding Unlimited Company

Notes to the Condensed Financial Statements for the half-year ended 30 June 2020 (continued)

14 Financial risk management (continued) (a) Credit risk (continued)

The movement in the allowance for impairment in respect of loans and advances to GEC affiliates during the reporting period was as follows:

In Thousand's of $ Balance at 1 January 2020 6,299 Increase in loss allowance 10,590 Balance at 30 June 2020 16,889

The increase in loss allowance is mainly attributable to increase the PD (average PD rate from 0.105% as at 31 December 2019 to 0.27% as at 30 June 2020) on the loans and advances to GEC affiliates due to the recession caused by the COVID-19 pandemic during the period. Fair value adjustment for credit risk The Company assesses the valuation adjustments required for credit risks associated with derivatives measured at fair value as at 30 June 2020. All derivatives are executed with GE Financial Markets Unlimited Company (“GEFM”) and a credit valuation adjustment (“CVA”) is calculated to reflect the credit risk of GEFM. A debit valuation adjustment (“DVA”) is calculated to reflect the credit risk of the Company with the bilateral adjustment recorded in the measurement of the derivatives in the Interim Financial Report. As at 30 June 2020 the bilateral adjustment for the Company amounted to $48 million (31 December 2019: $7.7 million) which has been recorded as a debit to the ‘Net expense from financial instruments carried at fair value” in the Condensed Statement of Comprehensive Income. Interest rate benchmark reform A fundamental reform of major interest rate benchmarks is being undertaken globally to replace or reform interbank offered rates ('IBOR') with alternative nearly risk-free rates (referred to as ‘IBOR reform’). The Company has exposure to IBORs on its financial instruments that will be replaced or reformed as part of this market-wide initiative. There is significant uncertainty over the timing and the methods of transition across the jurisdictions that the Company operates in.

The Company has established a cross functional IBOR reform Committee to manage its transition to alternative rates and is in the process of identifying and managing the potential impact to the Company.

The Company early adopted the amendments to IAS 39 and IFRS 7 issued by the Board in September 2019 as part of its project on interest rate benchmark reform (‘the amendments’). The related disclosures for the comparative period are made under IAS 39 and IFRS 7 before the amendments.

20 GE Capital UK Funding Unlimited Company

Notes to the Condensed Financial Statements for the half-year ended 30 June 2020 (continued)

14 Financial risk management (continued) (b) Liquidity risk

Liquidity risk is the risk that the Company will encounter difficulty in meeting obligations from its financial liabilities.

Management of liquidity risk

The Company’s approach to managing liquidity is to ensure, as far as possible, that it will always have sufficient liquidity to meet its liabilities when due, under both normal and stressed conditions, without incurring unacceptable losses or risking damage to the Company’s reputation.

As a result of the GE Capital restructuring it is anticipated that there will be no requirement for the Company to issue new long term debt for the foreseeable future with the expectation that the current MTN portfolio remains until maturity. The CP programme continues presently albeit no CP is in issue at period end. The Company has access to the GEC cash pool should it be required.

The Company’s intermediate parent GECIHL has guaranteed that it will meet the liabilities of the CP and MTN programmes should the Company, be unable to meet these liabilities. As of 10 April 2015, GEC, has also guaranteed the CP and MTN programmes of the Company thus reducing further the risk to any potential investor and supporting the CP and MTN programmes. As part of the Company’s processes, management monitor the ratings of GEC.

GEC receives information from other business units regarding the liquidity profile of their financial assets and liabilities and details of other projected cash flows arising from projected future business. The repayment terms of debt securities are outlined in Note 17. The Company has loans and advances to GEC affiliates net of impairment loss provision of $5,706 million (31 December 2019: $9,668 million). At period end, 34% of Company lending was to GECIHL and 65% of Company lending was to GEFF. GEC maintains a portfolio of short-term liquid investment securities, loans and advances to banks and other inter-bank facilities, to ensure that sufficient liquidity is maintained within the Company. The Company also has access to short term liquidity through their access to the GE European Cashpool operated by GE Capital European Treasury Services Ireland Unlimited Company ("GECETS") and GE Capital Treasury Services (U.S.) LLC ("GECTS"). The Directors with the assistance of GEC monitor the on-going liquidity requirements of the Company, and by way of short-term loans from GEC to cover any short-term fluctuations and obtain longer term funding to address any structural liquidity requirements. The overall Company daily liquidity position is monitored by GEC.

(b) Liquidity risk (continued)

The Company held derivative assets for qualifying hedging relationships purposes of $467 million (31 December 2019: $390 million) and derivative assets of $10 million at 30 June 2020 (31 December 2019: $114 million). The Company held derivative liabilities for qualifying hedging relationships purposes of $Nil (31 December 2019: $Nil) and derivative liabilities of $Nil at 30 June 2020 (31 December 2019: $Nil). The derivative assets and liabilities have been split between qualifying hedging relationships and not in hedging relationships, disclosing separately those derivatives that qualify as hedging instrument under IAS39 from those that do not. During the period, fixed rate debt with a nominal value of $829 million were terminated and de-designated in qualifying hedging relationships due to early redemption which happened in April and May, consequently fixed rate debt with a nominal value of $650 million was early bought back and $179 million is held at amortised cost not in qualifying hedging relationships at the period end.

21 GE Capital UK Funding Unlimited Company

Notes to the Condensed Financial Statements for the half-year ended 30 June 2020 (continued)

14 Financial risk management (continued) Residual contractual maturities of financial assets Carrying Current Non-current Note amount amount amount In millions of $ 30 June 2020 Non-derivative financial assets Loans and advances to GEC affiliates 5,706 5,666 40 Cash and cash equivalents 12 - - - 5,706 5,666 40

Derivative assets Inflow - held for qualifying hedging relationships 16 2,188 - 2,188 Inflow - not in qualifying hedging relationships 16 862 121 741 Outflow - held for qualifying hedging relationships 16 (1,721) - (1,721) Outflow - not in qualifying hedging relationships 16 (852) (121) (731) 477 - 477 6,183 5,666 517

22 GE Capital UK Funding Unlimited Company

Notes to the Condensed Financial Statements for the half-year ended 30 June 2020 (continued)

14 Financial risk management (continued) Residual contractual maturities of financial assets Carrying Current Non-current Note amount amount amount In millions of $ 31 December 2019 Non-derivative financial assets Loans and advances to GEC affiliates 9,668 9,628 40 9,668 9,628 40

Derivative assets Inflow - held for qualifying hedging relationships 16 2,443 33 2,410 Inflow - not in qualifying hedging relationships 16 1,684 1,684 - Outflow - held for qualifying hedging relationships 16 (2,053) (29) (2,024) Outflow - not in qualifying hedging relationships 16 (1,570) (1,570) - 504 118 386 10,172 9,746 426

23 GE Capital UK Funding Unlimited Company

Notes to the Condensed Financial Statements for the half-year ended 30 June 2020 (continued)

14 Financial risk management (continued) Residual contractual maturities of financial liabilities Carrying Gross nominal Less than 1 3 months to 1 More than 5 Note amount inflow/(outflow) month 1-3 months year 1-5 years years In millions of $ 30 June 2020 Non derivative liabilities Loans and advances from GEC affiliates 8 (8) (8) - - - - Debt securities issued 17 4,018 (5,224) (81) - (298) (1,363) (3,482) Other liabilities ------4,026 (5,232) (89) - (298) (1,363) (3,482)

Undrawn loan commitments - (4,126) (4,126) - - - - 4,026 (9,358) (4,215) - (298) (1,363) (3,482)

At 30 June 2020, loans and advances from GEC affiliates represent outstanding principal and interest balances on borrowings with a GEC affiliate in the capital structure.

24 GE Capital UK Funding Unlimited Company

Notes to the Condensed Financial Statements for the half-year ended 30 June 2020 (continued)

14 Financial risk management (continued) Residual contractual maturities of financial liabilities Carrying Gross nominal Less than 1 3 months to 1 More than 5 Note amount inflow/(outflow) month 1-3 months year 1-5 years years In millions of $ 31 December 2019 Non derivative liabilities Loans and advances from GEC affiliates 3,090 (3,090) (3,090) - - - - Debt securities issued 17 4,941 (6,616) (151) - (899) (1,684) (3,882) Other liabilities 18 1 (1) - - (1) - - 8,032 (9,707) (3,241) - (900) (1,684) (3,882)

Undrawn loan commitments - (289) (289) - - - - 8,032 (9,996) (3,530) - (900) (1,684) (3,882)

At 31 December 2019, loans and advances from GEC affiliates represent outstanding principal and interest balances on borrowings with a GEC affiliate in the capital structure.

25 GE Capital UK Funding Unlimited Company

Notes to the Condensed Financial Statements for the half-year ended 30 June 2020 (continued)

14 Financial risk management (continued) (b) Liquidity risk (continued)

The previous table shows the undiscounted cash flows on the Company’s financial liabilities and unrecognised loan commitments on the basis of their earliest possible contractual maturity. The Company’s expected cash flows on these instruments may vary significantly from this analysis. For example, undrawn loan commitments are not all expected to be drawn down immediately, but upon draw down would have contractual maturity not greater than 5 years.

Residual contractual maturities of financial liabilities The gross nominal inflow / (outflow) disclosed in the previous table is the contractual, undiscounted cash flow on the financial liability or commitment. The disclosure for derivatives shows a gross inflow and outflow amount for derivatives that have simultaneous gross settlement.

To manage the liquidity risk arising from financial liabilities, the Company holds liquid assets comprising cash and cash equivalents and is linked to the GECETS and GECTS cashpool. Hence, the Company believes that it is not necessary to disclose a maturity analysis in respect of these assets to enable users to evaluate the nature and extent of liquidity risk. The cash balances pool with another GEC affiliate nightly, is payable on demand and is recorded under loans and advances from GEC affiliates and/or loans and advances to GEC affiliates depending on whether the cash has been borrowed from or lent to the cashpool.

Exposure to foreign currency risk The principal market risk faced by the Company relates to currency risk as some borrowing and lending is in GBP while the functional currency is USD. The following tables set out the Company's non-USD monetary assets and liabilities at 30 June 2020 and 31 December 2019 and the net exposure in original currency and USD of those monetary assets and liabilities.

30 June 2020 Original Currency Amounts Monetary Monetary Currency Swaps Net Exposure Year End Rates Net Exposure Assets Liabilities '000 '000 '000 '000 $'000 GBP 1,594,628 (3,277,651) 1,150,698 (532,325) 1.2281 (653,749) EUR - (238) - (238) 1.1206 (266)

26 GE Capital UK Funding Unlimited Company

Notes to the Condensed Financial Statements for the half-year ended 30 June 2020 (continued)

14 Financial risk management (continued)

(c) Market risks (continued) 31 December 2019 Original Currency Amounts Monetary Monetary Year End Currency Swaps Net Exposure Net Exposure Assets Liabilities Rates '000 '000 '000 '000 $'000 GBP 1,576,523 (3,760,077) 1,592,022 (591,533) 1.3257 (784,195) EUR - (238) - (238) 1.1213 (266)

The Company reduces currency exposure through the use of cross currency derivatives. A 1% appreciation/depreciation in the GBP/USD exchange rate as at 30 June 2020 would give rise to approximately a $6.5 million loss/profit based on the net exposure at 30 June 2020. (2019: A 1% appreciation/depreciation in the GBP/USD exchange rate as at 31 December 2019 would give rise to approximately a $8 million loss/profit based on the net exposure at 31 December 2019). Exposure to interest rate risk The Company has exposure to interest rates. This is mitigated by entering into interest rate swaps to match the maturity of assets and liabilities held by the Company.

Under the Company policy, in order to conclude that a hedge relationship is effective, all of the following criteria should be met: • The regression co-efficient (R Squared), which measures the correlation between the variables in the regression, is at least 0.8; • The slope of the regression line is within a 0.8 - 1.25 range; • The confidence level of the slope is at least 95%.

In these hedge relationships the main sources of ineffectiveness are: • The effect of the counter party’s and the Company’s own credit risk on the fair value of the swaps which is not reflected in the change in the fair value of the hedged cash flows attributable to the change in interest rates; and • Differences in repricing dates between the swaps and the borrowings.

Portfolios are exposed to the risks associated with fixed rate liabilities versus floating rate receivables, the loss from fluctuations in the future cash flows and fair values of financial instruments because of a change in market interest rates. Interest rate risk is managed principally through monitoring interest rate gaps and the Directors are responsible for monitoring such interest rate gaps.

The interest rate on floating rate assets and liabilities are reset quarterly from the initial date of funding. Therefore movements in the benchmark interest rate during the quarter can give rise to a mismatch between interest expense and income. The effect on the group of a 0.5% increase in the benchmark rate for a full year could give rise to additional profit of approximately $11 million (31 December 2019: $11 million). A decrease of 0.5% would have an equal and opposite effect.

27 GE Capital UK Funding Unlimited Company

Notes to the Condensed Financial Statements for the half-year ended 30 June 2020 (continued)

14 Financial risk management (continued)

(d) Other price risk Other price risk is the risk that the fair value of the financial instruments will fluctuate as a result of changes in market prices (other than those arising from interest rate risk or currency risk), whether caused by factors specific to an individual instrument, its issuer or factors affecting all instruments traded in the market.

The Directors consider the impact of other price risk to be low.

The process for monitoring and measuring this risk is unchanged from year end.

One GEC affiliate, GECIHL, engaged in financial services and incorporated in the United Kingdom ("UK") accounted for 17% (2019: 26%) of Company revenue. One GEC affiliate, GEFF, engaged in financial services and incorporated in Ireland accounted for 82% (2019: 73%) of Company revenue.

In addition to the above, the Company had entered into lending commitments of $4,126 million (31 December 2019: $289 million) with 100% owned GEC affiliates.

28 GE Capital UK Funding Unlimited Company

Notes to the Condensed Financial Statements for the half-year ended 30 June 2020 (continued)

15 Accounting classifications and fair values The table below sets out the carrying amounts and fair values of the Group’s financial assets and liabilities. Fair value through profit or loss Amortised Cost Held for Not in Qualifying qualifying qualifying hedging In millions of $ hedging hedging relationships at Total Carrying 30 June 2020 relationships relationships Amortised cost amortised cost Amount Fair Value * Cash and cash equivalents ------Derivative assets held for qualifying hedging relationships 467 - - - 467 467 Derivative assets - 10 - - 10 10 Loans and advances to GEC affiliates - - 5,706 - 5,706 5,704 467 10 5,706 - 6,183 6,181

Loans and advances from GEC affiliates - - 8 - 8 8 Debt securities issued - - 226 3,792 4,018 3,560 Other liabilities ------234 3,792 4,026 3,568

* Readers of this Interim Financial Report are advised to use caution when using the data in the table above to evaluate the Company’s financial position or to make comparisons with other institutions. All “Loans and advances to GEC affiliates” are with GEC affiliates and planned to be held to maturity. Market risks are key assumptions in the estimation of the fair value of “Loans and advances to GEC affiliates”. Derivative assets and liabilities are valued using internal models. These models maximise the use of market observable inputs including market observable swap rates and spread indicators obtained from three leading market makers.

29 GE Capital UK Funding Unlimited Company

Notes to the Condensed Financial Statements for the half-year ended 30 June 2020 (continued)

15 Accounting classifications and fair values (continued) Fair value through profit or loss Amortised Cost Held for Not in Qualifying qualifying qualifying hedging In millions of $ hedging hedging relationships at Total Carrying 31 December 2019 relationships relationships Amortised cost amortised cost Amount Fair Value * Derivatives assets held for qualifying hedging relationships 390 - - - 390 390 Derivative assets - 114 - - 114 114 Loans and advances to GEC affiliates - - 9,668 - 9,668 9,668 390 114 9,668 - 10,172 10,172

Loans and advances from GEC affiliates - - 3,090 - 3,090 3,090 Debt securities issued - - 33 4,908 4,941 4,880 Other liabilities - - 1 - 1 1 - - 3,124 4,908 8,032 7,971

30 GE Capital UK Funding Unlimited Company

Notes to the Condensed Financial Statements for the half-year ended 30 June 2020 (continued)

16 Financial assets and liabilities Fair value hedging relationships At 30 June 2020, certain MTN’s shown within debt securities issued are in interest rate hedging relationships valued at $3,791 million (31 December 2019: $4,908 million). These are fair valued with respect to the hedged interest risk.

Derivatives held for risk management At 30 June 2020 certain derivatives are entered into for risk management purposes however those that qualify under IAS 39 for hedge accounting are disclosed separately from those that are not. All the derivatives are with a GEC affiliate, GEFM. 30 June 2020 31 December 2019 $'000 $'000 Derivative assets Instrument type: Interest rate swaps held for qualifying hedging relationships - non current 466,869 386,463 Interest rate swaps held for qualifying hedging relationships - current - 3,788 Cross currency swaps - non current 9,931 - Cross currency swaps - current 31 114,146

476,831 504,397

Fair value hedges of interest rate risk The Company use interest rate swaps to hedge its exposure to changes in the fair value of its fixed rate GBP MTN’s. Interest rate swaps are matched to specific issuances of fixed rate notes. The fair value of derivative assets designated as fair value hedges is $467 million (31 December 2019: $390 million) and the fair value of derivative liabilities designated as fair value hedges is $Nil (31 December 2019: $Nil).

Other derivatives not held in qualifying hedging relationship The Company use other derivatives, not designated in a qualifying hedge relationship, to manage the exposure to interest rate risk and foreign exchange risk. The instruments used include interest rate swaps and cross currency swaps. The fair values of those derivatives are shown in the table above.

The notional amounts of all interest rate swaps outstanding at 30 June 2020 were $2,600 million (31 December 2019: $3,702 million). The notional amounts of all cross currency swaps outstanding at 30 June 2020 were $847 million (31 December 2019: $1,509 million).

31 GE Capital UK Funding Unlimited Company

Notes to the Condensed Financial Statements for the half-year ended 30 June 2020 (continued)

17 Debt securities issued 30 June 2020 31 December 2019 $'000 $'000 Fixed rate debt securities in qualifying hedging relationship 3,791,592 4,908,227 Floating rate debt securities issued at amortised cost 30,781 33,252 Fixed rate debt securities held at amortised cost (no longer in qualifying hedging relationships) 195,506 - 4,017,879 4,941,479

At 30 June 2020, $3,819 million (31 December 2019: $4,111 million) of nominal debt securities issued are expected to be settled more than twelve months after the reporting date. Floating rate debt securities issued by the MTN program held at amortised cost have maturity for 18 years (31 December 2019: 18 years), and the interest rate is 6 month GBP Libor plus 1.3% (31 December 2019: 6 month GBP Libor plus 1.3%).

Fixed rate debt securities issued in qualifying hedging relationships by the MTN program have a range of maturities from 3.21 years to 18.55 years (31 December 2019: 0.85 years to 19.05 years), a weighted average maturity of 12.64 years (31 December 2019: 10.33 years) and a range of interest rates from 4.12% to 8% (31 December 2019: 4.12% to 8%).

Fixed rate debt securities issued at amortised cost no longer in qualifying hedging relationships by the MTN program have a range of maturities from 0.35 years to 2.90 years (31 December 2019: Nil), a weighted average maturity of 1.25 years (31 December 2019: Nil) and a range of interest rates from 5.125% to 5.875% (31 December 2019: Nil). The Company had unutilised loan commitments, all to other GEC affiliates, of $4,126 million at 30 June 2020 (31 December 2019: $289 million). An unutilised commitment is the amount of any given credit facility that has not been drawn by the borrower. The longest of these commitments has the potential to extend to 2020. The table below analyses nominal movements in medium term notes: 30 June 2020 31 December 2019 Medium Term Notes Medium Term Notes $'000 $'000 Opening balance 3,735,112 4,346,242 Maturities - (727,248) Early redemption (650,409) - Foreign exchange (272,440) 116,118 Closing Balance 2,812,263 3,735,112

The Company have not had any defaults of principal, interest or other breaches with respect to its debt securities during the current period end of 2020 or the year end of 2019. Foreign exchange arises due to large gross movements in balances, redemptions and issuances which have been translated at the rates of exchange prevailing at the dates of transaction and opening and closing balances have been translated at the closing rates of exchange as at 31 December 2019 and 30 June 2020.

32 GE Capital UK Funding Unlimited Company

Notes to the Condensed Financial Statements for the half-year ended 30 June 2020 (continued)

18 Changes in liabilities from financing activities 1 January Non-cash Changes 30 June 2020 2020 Cash Flows FX Fair Value Other Movements Changes $'000 $'000 $'000 $'000 $'000 $'000 Debt securities issued 4,941,479 (650,409) (272,439) 65,014 (65,765) 4,017,879

1 January 31 December Non-cash Changes 2019 Cash Flows 2019 FX Fair Value Other Movements Changes $'000 $'000 $'000 $'000 $'000 $'000 Debt securities issued 5,462,763 (727,248) 116,118 99,424 (9,577) 4,941,479

19 Operating segments It is the Directors’ view that the Company’s business is organised as a single segment. The Company has earned all its revenues in the Republic of Ireland and all of the Company’s revenues arise from the provision of loans to GEC affiliates and from management fee income from GEC affiliates. Company 30 June 2020 30 June 2019 Ireland Ireland $'000 $'000 Revenue from loans and advances to GEC affiliates - contract duration within one year 98,751 67,876 Revenue from commitment fees and management fees from GEC affiliates 162 52 Total segment revenue 98,913 67,928

Reportable segment profit/(loss) before tax 35,723 18,693

30 June 2020 31 December 2019 $'000 $'000 Reportable segment assets 6,182,412 10,172,576 Reportable segment liabilities 4,025,900 8,031,886

One GEC affiliate, GECIHL, accounted for 17% of total revenue of the Company during the period (30 June 2019: 27%) and another GEC affiliate, GEFF, accounted for 82% of total revenue of the Company during the period (30 June 2019: 69%). No other GEC affiliates accounted for more than 10% of total revenue.

Loans to GECIHL, accounted for 31% of segment assets at 30 June 2020 (31 December 2019: 21%). Loans to GEFF, accounted for 60% of segment assets at 30 June 2020 (31 December 2019: 74%). No other GEC affiliates accounted for more than 10% of segment assets.

33 GE Capital UK Funding Unlimited Company

Notes to the Condensed Financial Statements for the half-year ended 30 June 2020 (continued)

20 Related party disclosures (a) Transactions with subsidiary undertakings and other affiliate GEC Group affiliates The Company enters into financial transactions with other GEC affiliates in the normal course of business. These include loans, derivative instruments and foreign currency transactions on an “arm’s length” or cost plus basis. In addition, the Company enters into transactions with GEC affiliates and derivative transactions with GEFM. Transactions and balances between the Company and other GEC affiliates are detailed in Notes 4, 5, 6, 7, 10, 14, 15, and 19. Profit and loss transactions with related parties 30 June 2020 30 June 2019 $'000 $'000 Affiliates/other group companies/Intermediate parent 212,685 94,713 212,685 94,713

Balances with related parties 30 June 2020 31 December 2019 $'000 $'000 GEC affiliates 6,174,390 7,082,167 6,174,390 7,082,167

The following are the related parties with whom the Company has balances or has transacted with during the period: GE Capital US Holdings, Inc., GE Financial Funding Unlimited Company, GE Capital European Treasury Services Ireland Unlimited Company, GE Capital European Funding Unlimited Company, GE Capital International Holdings Limited, GE Financial Markets Unlimited Company, GE Capital European Treasury Services Limited, GE Capital International Funding Company Unlimited Company, GE Financial Ireland Unlimited Company, GE Ireland Financial Funding Unlimited Company and GE Financial Markets Unlimited Company.

(b) Sale of loans In the current period no loans were sold (31 December 2019: No loans sold).

(c) Compensation of key management personnel Under IAS 24,“Key Management Personnel” are defined as comprising of the Directors together with senior executive officers.

The Company has a management service and investment services agreement in place with GE Capital European Funding Unlimited Company ("GECEF"), a group company. Directors' remuneration has been included in the service fee charged from this Company. The employee of the Company is not a senior executive officer or a member of the Board.

There has been no material change in the remuneration of key management personnel for the period ended 30 June 2020.

34 GE Capital UK Funding Unlimited Company

Notes to the Condensed Financial Statements for the half-year ended 30 June 2020 (continued)

20 Related party disclosures (continued) (d) Transactions with key management personnel There were no loans, quasi-loans or credit transactions outstanding by the Company to its Directors at any time during the current or preceding year.

(e) Off balance sheet arrangements As part of the wider GEC Group, the Company avail of services provided by other GEC affiliates. These include cash operations, treasury, human resources and technical accounting services.

21 Subsequent events The effect of COVID-19 on the Company's financial results and cash flows will continue to be monitored and evaluated for the remainder of the 2020 financial year.

On 25 September 2020, the Company bought back £1,235 thousand nominal of its 2038 maturity floating rate note for cash consideration of £1,236 thousand.

No significant events affecting the Company occurred since the reporting date, which require adjustment to or disclosure in the condensed interim financial statements.

22 Approval of Financial Statements The unaudited condensed interim financial report was approved by the Directors on 29 September 2020.