CIT Group Inc. Wachovia 14th Annual Nantucket Conference.

CIT Group Inc.

Wachovia 14th Annual Nantucket Conference

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NoticesForward Looking StatementsCertain statements made in these presentations 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", 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 period ended December 31, 2003 and our Form 10-Q for the quarter ended March 31, 2004. CIT does not undertake to update any forward-looking statements.

Non-GAAP Financial MeasuresThese presentations include 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, please refer to the appendix within this presentation or access the reconciliations through CIT's Investor Relations website at [email protected].

Data as of March 31, 2004 unless otherwise noted. Subsequent to March 31, 2004 Structured Finance was amalgamated with Capital Finance ($1.8 billion of managed assets) and Commercial Finance-Business Credit ($1.3 billion of managed assets). Prior period data has not been restated to reflect the change.

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Introduction

• The world’s largest publicly held commercial finance company

• Managed assets of $50 billion and roughly 6,000 employees

• Diverse franchise offering a full array of financial products & services

• Predominantly a collateralized lender

• Customers include the majority of the Fortune 1000 companies

• Listed on NYSE under the ticker symbol “CIT”

• 68% return for shareholders since the IPO (July 2002 - May 2004)

• Current market capitalization of approximately $8 billion

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Business Strategy

Focused Growth Emphasize businesses where we have competitive strengths and predictable performance

Diversification Maintain balanced businesses and broad funding platforms that reduce risk through diversification

Scale

Risk Management

Assume leadership positions in key businesses where operating leverage can be generated

Further utilize technology and information to properly balance risks and rewards

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$3B

$7B

$11B

$10B

$19B

0 5 10 15 20 25

StF

CF

CF

EF

SF

Segment Overview

Managed Assets - $50B

Segment data excludes $250mm of equity investments held in corporate.

Small-ticket commercial lending and leasing, vendor finance, SBA lending and consumer home equity loans

Mid-large ticket asset based lending, factoring and other commercial services

Commercial aerospace and rail equipment leasing and lending

Diversified middle market equipment lending and leasing

Specialized investment bank for the middle market

Market Focus

Commercial$13B

Consumer$6B

Commercial Services

$7B

Bus.Credit$4B

SpecialtyFinance

EquipmentFinance

CommercialFinance

CapitalFinance

StructuredFinance

(billions)

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Business Assessment

Business UnitManagedAssets

Market Position

Entry Barriers Competitive Strengths

Specialty: Commercial $13B Leader Medium Technology, Origination and servicing, Relationships, Efficiency, “Preferred and Exclusive Lender” status

Specialty: Consumer $6B Player Medium Technology, Servicing, Relationships

Equipment Finance $10B Leader Medium Relationships, Reputation, Collateral expertise, Service

Commercial Services $7B Leader High Credit, Relationships, Technology, Processing Efficiency

Capital Finance $7B Leader High Asset and industry expertise, Relationships, Service, Remarketing capability

Business Credit $4B Leader Medium Reputation, Relationships, Speed, Credit, Portfolio management and syndication capability

Structured Finance $3B Player Low/Medium Structuring expertise, Relationships, Credit, Underwriting and syndication skills

FLO

WTR

AN

SAC

TIO

N

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More Diverse Today Than 10 Years Ago

CAGR13.5%

Managed Assets $13.7 billion Managed Assets $50 billion

13%7%

14%

36%

30%Commercial

Services

Capital Finance

EquipmentFinance

SpecialtyConsumer

BusinessCredit

25%

13%

13%8%15%

20%

6%EquipmentFinance

StructuredFinance

CommercialServices

Capital Finance

SpecialtyCommercial

SpecialtyConsumer

BusinessCredit

Segment data excludes $250mm of equity investments held in corporate.

December 1993 March 2004

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38% 43%

20% 8%

21% 33%

15%10%

6% 6%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Managed Assets Net Income

Structured Finance

Capital Finance

Commercial Finance

Equipment Finance

Specialty Finance

Segment data excludes equity investments and other corporate data.

$50 billion $164 million

Results by Business Segment

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Financial Scorecard

* Excludes $25.5 million after-tax gain on PINES debt call

2003Q1

2004Q1*

Long Term Targets

Profitability Net Income ($ millions) 127 164EPS ($) 0.60 0.76ROTE 11.0% 13.1% 15%

Risk Adjusted Margin 2.34% 3.09% 3.40% - 3.60%Securitization Gain (% PT Income) 14% 8% Max. 15%

Expenses Efficiency Ratio 41.7% 41.1% 35% Area

CreditCredit Losses - Total 1.61% 1.26%

Balance SheetManaged Assets ($ billions) 47.5 50.1 8% - 10%Tangible Equity/Managed Assets 10.4% 10.7% 9% Plus

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0.71%

0.42%0.42%

0.59%0.62%0.50%

0.61%

0.77%0.84%0.82%0.86%

0.83%

1.58%

1.17%

0.98%

1.26%

1.92%

1.77%

1.26%

1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 Q12004

Liquidating, Telecom and Argentina

Core

Historic Credit Losses

.80-.85%

Objective

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12/99 12/00 12/01 12/02 12/03 3/04

Sharp Improvement in Forward Markers

1.89%

2.16%

3.63%

3.90%

2.98%

2.71%

12/99 12/00 12/01 12/02 12/03 3/04

Owned Delinquency 60+ days

LiquidatingRepoNon-Accrual

3.24%

2.47%

2.05%

3.93%

2.16%

Non-Performing Assets

2.07%

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Strong Balance Sheet

4.0 4.3 4.34.8

5.2 5.4

Dec-99 Dec-00 Dec-01 Dec-02 Dec-03 Mar-04

7.69% 7.81%

8.78%

10.41% 10.45% 10.69%

Tangible Capital to Managed Assets

Tangible Capital ($billions)

644761

496447 469

637

Dec-99 Dec-00 Dec-01 Dec-02 Dec-03 Mar-04

1.44% 1.40%1.64% 1.77% 1.71% 1.68%

General Reserves to Fin Rec.

Reserves ($millions)

Telecom General Argentine

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1998 Q1-04

Rating Aa3/A+ A2/A

Profitability:

ROMA

ROTE

1.48%

14.0%

1.42%

13.1%

Asset Quality:

Charge-offs

NPA’s

0.42%

1.40%

0.98%*

2.07%

Capitalization:

Tang Equity/MA

Alt. Liquidity/STD

10.3%

43%

10.7%

86%

Ratings Objective

Issue Current Status

Economic Environment

• Improving economy• Diverse business franchises

Wholesale Funding Model

• Expanded funding diversity • Reduced refinancing risk• Proven alternate liquidity

Management Transition

• Well-defined succession plan• Experienced management

Comparative Analysis Other Qualitative Factors

* Core Charge-offs

Focus on returning to high single A long-term debt rating

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Balanced and Diverse Funding Mix

US MTN26%

Globals27%

US CP9%

US Retail6%

Int'l ABS CP4%

US Comm. ABS11%

US Cons. ABS6%

Int'l Globals & MTN's

3%

US ABS CP7%

Private Placements 1%

Outstanding Debt and ABS at December 31, 2003

• Commercial Paper– US$ 5.0B program

– C$ 1.0B program

– A$ 1.0B CP/MTN program

• Term Debt– Diverse product offerings:

• Institutional and Retail

• Public and Private

• US and International

– Strong demand across maturities

• Securitization– Attractive funding alternative and valuable liquidity source

– Diverse product offerings:• Public market and Private conduits

• Various asset classes

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Capital Generation

Return on Equity 13%

Dividend Payout 17%

Capital Generation

11%

• Asset growth target 8-10%

• Increased dividend 8%

• Stock buyback program to support employee stock option program

• Acquisitions that are accretive to earnings

Funds

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Growing the Business

Focus on sectors growing faster than GDP– Technology– Healthcare– Media and Communications

Increase market share– Deeper penetration into existing businesses– Expand origination/distribution channels – Supplement organic growth with acquisitions

Target new (but related) markets – Leverage international platforms– Build vendor relationships

Managed Asset Growth Target: 8-10%

Grow assets consistent with GDP expansion

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Traits of a Rising Rate Environment

Volume• Higher capital spending• Activity picks up and growth accelerates

Revenue

• Higher asset growth drives more margin• Stronger deal flow leads to fee generation• Equipment gains higher

Margin • Matched funding philosophy minimizes risk

Credit

• More liquidity for customers• Asset and collateral values appreciate• Lower losses and improved credit metrics

Competition

• Cyclical lenders return• Capital available for new entrants • Pricing pressure increases

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Key Investment Highlights

• Diverse franchise with market leadership positions and 95+ years experience in commercial lending

• Robust capital levels position us well for economic recovery

• Infrastructure in place to support higher asset volumes

• Strong reserves and broad based credit quality improvements

• Deep funding model and solid liquidity position

• Solid single A ratings with a stable outlook by all agencies

• Disciplined and experienced management team

Appendix

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Corporate History

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 Int’l acquisition of

CIT completed

CIT and Tyco announced definitive agreement in which

Tyco would acquire CIT

CIT announced agreement to

acquire 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

Dai-Ichi Kangyo Bank acquired 60%

of CIT from Manufacturers

Hanover

Manufacturers Hanover

purchased CIT from RCA

CIT Financial Corporation, company’s industrial

financing entity, was incorporated

CIT went public and was listed on NYSE.

The company had 600 employees and assets

of $44.7 MM

July 2, 2002

June 1, 2001

July 14, 2000

CIT is added to the S&P 500

Index

March 13,2001

March1999

19981996

1995

1989

19871984

1980

RCA acquired CIT

1942

1924

1908

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Board of Directors

* Served on previous CIT Boards

Board MemberMember

SinceIndependent

Directors

Board Committees

Audit Comp Nom & Gov

Albert R. Gamper, Jr.* 2002

Jeffery M. Peek 2003

William A. Farlinger* 2002

Thomas H. Kean* 2002 Chairman

Edward J. Kelly, III 2002

Peter J. Tobin* 2002 Lead Chairman

William M. Freeman 2003

Marianne Miller Parrs 2003

John R. Ryan 2003 Chairman

Lois M. Van Deusen 2003

Gary Butler 2004

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Office of the Chairman

• The Office of the Chairman structure is designed to ensure a smooth succession of Senior management

• Collectively within the office are deep and complementary business management skills– Broad financial services management skills

– Operational, financial and credit expertise

– CIT history and insight

Tom H a llm anV ice C ha irm an

Specia lty F inance

Joe LeoneV ice C ha irm an

C FO

Larry M ars ie lloV ice C ha irm an

C h ie f Cred it O fficer

Jeff P eekP resident & COO

A l GamperChairm an & CEO

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Customized solutions supporting businesses

Flow Business

Specialty Finance - Commercial

Vendor Finance:• Relationships with Dell Computer, Avaya, Snap-on

Tools, Agilent and other Fortune 500 companies around the globe

• State-of-the-art transaction processing technology • Scalable platform with significant operating leverage

SBA Lending:• #1 Provider of government backed small business loans

Point-of-Sale & Office Products: • Provide financing for credit card terminals,

photocopiers, etc.Total Managed Assets $50B

$12.6B

Data as of March 31, 2004

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Automated processing drives efficiency

Specialty Finance - Consumer

Home Equity:• Mortgage broker driven business• Highly efficient origination and credit approval

systems• Scalable “best-in-class” servicing and collection• High credit quality and geographically diverse

portfolio

Other Consumer:

• Liquidating Portfolios including Manufactured Housing, Recreational Vehicle, Marine & Inventory Finance

Total Managed Assets $50B

$6.5B

Flow Business


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Premier brand recognition

Commercial Services

• Leading commercial services / factoring business in the U.S.

• Vital credit bridge between vendors and retailers

• Highly efficient processor

• Annuity-like earnings

• Long-term client relationships - 10+ years on average

• Superb track record of navigating retail credit cycles Total Managed Assets $50B

$6.5B

Flow Business


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Consistent player in the ABL market

Business Credit

• Asset based lender to multiple industries

• Leading provider of working capital to the middle market

• Strong debtor-in-possession (DIP), turn around and expansion financing capabilities

• Deal-oriented and collateral protected

• Long standing referral relationships

• Significant fee generator


$4.1B

Transaction Business


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“Best-in-class” equipment management

Capital Finance

• Portfolio Composition

– Aerospace: $4.7B

– Rail: $2.5B

• Four decades of experience in providing customized financing and leasing services

• Experts in managing and maximizing collateral values

• Strong relationships with deep market penetration

• State-of-the-art proprietary systemsTotal Managed Assets $50B

$7.2B



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Industry commitment and expertise

Equipment Finance

• Leading equipment lender with a premium brand name

• Industry leader in key markets:

– Construction equipment

– Manufacturing

– Corporate aircraft

• Wide range of product offerings including direct financing programs with equipment manufacturers and dealers

• Collateral and equipment management expertise

$9.9B


Flow Business


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Significant fee generator

Structured Finance

• CIT’s specialized investment bank for the middle market

• Project-oriented niche business

• Expertise in structured leasing, project finance, media and regional aircraft

• Syndication capability limits use of balance sheet

• Strong fee generator (Advisory, Arranging, Underwriting, and syndicating)


$3.1B



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Commercial Aerospace

Portfolio CompositionPortfolio Statistics

Total Exposure $ 4.7 Billion

Aircraft – number 209 Planes

Average Age 7 Years

AOG (w/out LOI) 3 Planes

Top Exposure $267 Million

Body Type <10% Wide body

Geography <22% North America


Leveraged - Other$235

Loans$107

Finance/ Single Investor$148

Leverage - 80/20$219

Operating Leases$3,992

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Business Re-Alignment

Power, Energy & Infrastructure, Regional

Air and SD&L

$1.8

Communication & Media

$1.3

Structured FinanceCommunication & Media $1.3Power, Energy & Infrastructure 1.1Air - Regional 0.3Structured Debt & Leasing1 0.4Total $3.1

Capital FinanceAir

$5.1Rail

2.7Power, Energy & Infrastructure

1.1Structured Debt & Leasing

0.1Other

0.1New Capital Finance

$9.1

Business CreditBusiness Credit - Old

$ 4.1Communication & Media

1.3New Business Credit

$ 5.41 Includes $0.3 billion of product with the rail industry

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Non-GAAP Disclosure

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 substitute for, GAAP and may be different from, or inconsistent with, non-GAAP financial measures used by other companies.

($ in Millions) 03/31/04 12/31/03 09/30/03 06/30/03 03/31/03 12/31/02 09/30/02 06/30/02 03/31/02 12/31/01Managed assets:Finance receivables 32,187.4$ 31,300.2$ 30,342.6$ 28,413.6$ 28,654.6$ 27,621.3$ 28,459.0$ 27,925.4$ 26,297.7$ 30,333.0$ Operating lease equipment, net 7,576.2 7,615.5 7,485.3 7,560.0 6,831.4 6,704.6 6,567.4 6,689.7 6,604.0 6,465.6 Finance receivables held for sale 1,006.2 918.3 1,017.9 1,210.0 1,273.0 1,213.4 1,019.5 730.8 645.2 1,510.3 Equity and VC investments (included in other assets) 251.8 249.9 313.9 325.4 334.3 335.4 341.7 362.5 352.2 338.2 Total f inancing and leasing portfolio assets 41,021.6 40,083.9 39,159.7 37,509.0 37,093.3 35,874.7 36,387.6 35,708.4 33,899.1 38,647.1

Securitized assets 9,067.0 9,651.7 10,141.0 10,356.5 10,387.7 10,482.4 11,234.7 11,967.9 14,188.7 10,442.2 Managed assets 50,088.6$ 49,735.6$ 49,300.7$ 47,865.5$ 47,481.0$ 46,357.1$ 47,622.3$ 47,676.3$ 48,087.8$ 49,089.3$

Earning assets:Total f inancing and leasing portfolio assets 41,021.6$ 40,083.9$ 39,159.7$ 37,509.0$ 37,093.3$ 35,874.7$ 36,387.6$ 35,708.4$ 33,899.1$ 38,647.1$

Credit balances of factoring clients (3,619.4) (3,894.6) (3,103.0) (2,471.6) (2,437.9) (2,270.0) (2,513.8) (1,980.0) (1,543.5) (2,184.2) Earning assets 37,402.2$ 36,189.3$ 36,056.7$ 35,037.4$ 34,655.4$ 33,604.7$ 33,873.8$ 33,728.4$ 32,355.6$ 36,462.9$

Tangible stockholders' equity:Total equity 5,492.7$ 5,394.2$ 5,180.9$ 5,057.5$ 4,996.6$ 4,870.7$ 4,757.8$ 4,514.3$ 6,500.0$ 10,842.2$

Other comprehensive loss relating to derivatives 102.9 41.3 106.9 122.1 92.6 118.3 120.5 43.2 32.9 52.7

Unrealized (gain) loss on securitization investments (11.3) (7.7) (8.0) (7.9) (12.5) (20.5) (23.6) (18.6) (21.7) 13.9 Goodw ill and intangible assets (485.5) (487.7) (437.9) (404.1) (399.8) (400.9) (402.0) (403.1) (2,403.2) (6,857.1)

Tangible common equity 5,098.8 4,940.1 4,841.9 4,767.6 4,676.9 4,567.6 4,452.7 4,135.8 4,108.0 4,051.7 Preferred capital securities 255.1 255.5 255.9 256.4 256.8 257.2 257.7 258.1 258.6 259.0

Tangible equity 5,353.9$ 5,195.6$ 5,097.8$ 5,024.0$ 4,933.7$ 4,824.8$ 4,710.4$ 4,393.9$ 4,366.6$ 4,310.7$

CIT Group Inc. Wachovia 14th Annual Nantucket Conference.

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