2008 Farnborough Airshow GE Aviation July 15, 2008 GE job title/2 Farnborough Airshow July 15 th , 2008 2 This document contains "forward-looking statements" - that is, statements related to future, not past, events. In this context, forward-looking statements often address our expected future business and financial performance, and often contain words such as "expects," "anticipates," "intends," "plans," "believes," "seeks," or "will." Forward-looking statements by their nature address matters that are, to different degrees, uncertain. For us, particular uncertainties which could adversely or positively affect our future results include: the behavior of financial markets, including fluctuations in interest rates and commodity prices; strategic actions, including dispositions; future integration of acquired businesses; future financial performance of major industries which we serve, including, without limitation, the air and rail transportation, energy generation, media, real estate and healthcare industries; unanticipated loss development in our insurance businesses; and numerous other matters of national, regional and global scale, including those of a political, economic, business, competitive and regulatory nature. These uncertainties may cause our actual future results to be materially different than those expressed in our forward-looking statements. We do not undertake to update our forward-looking statements.
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2008 Farnborough Airshow
GE AviationJuly 15, 2008
GE job title/2Farnborough Airshow
July 15th, 20082
This document contains "forward-looking statements" - that is, statements related
to future, not past, events. In this context, forward-looking statements often address
our expected future business and financial performance, and often contain words
such as "expects," "anticipates," "intends," "plans," "believes," "seeks," or "will."
Forward-looking statements by their nature address matters that are, to different
degrees, uncertain. For us, particular uncertainties which could adversely or
positively affect our future results include: the behavior of financial markets,
including fluctuations in interest rates and commodity prices; strategic actions,
including dispositions; future integration of acquired businesses; future financial
performance of major industries which we serve, including, without limitation, the
air and rail transportation, energy generation, media, real estate and healthcare
industries; unanticipated loss development in our insurance businesses; and
numerous other matters of national, regional and global scale, including those of a
political, economic, business, competitive and regulatory nature. These
uncertainties may cause our actual future results to be materially different than
those expressed in our forward-looking statements. We do not undertake to update
our forward-looking statements.
GE job title/3Farnborough Airshow
July 15th, 20083
• ’07 op profit up 15% … 2Q’08 up 10%
• Tough fuel environment for customers … GE engines provide fuel advantage
• GE and Snecma partnership renewed for the next lifecycle
• GEnx certified Boeing 787 … certification in process for Boeing 747-8
• Systems … meeting acquisition expectations … positioning for growth
• F136 … won FY’08 funding
• Selected on all three key advanced programs for next generation combat
aircraft, transport aircraft, and medium helicopter
• Growth in Business & General Aviation … Walter Engines acquisition
What’s new since Paris
GE job title/4Farnborough Airshow
July 15th, 20084
’07 annualized revenue portfolio
$4.5 $6.8 $3.5
(a- Systems & Unison Engine Components estimated total year 2007 revenue(b- Includes GE’s 50% of CFMI & EA
CFMI is a 50/50 JV between GE and SnecmaEA is a 50/50 JV GE and Pratt & Whitney
$2.2
Unison Engine Components
$0.4
A leading aviation technology business
Commercial engines
Commercial engineservices
Military engines & services
’07 Revenue
’07 Revenue
–b)
–a)
Systems Business & General Aviation
$0.4
($ in billions)
GE job title/5Farnborough Airshow
July 15th, 20085
Aviation
Commercial engines
• ~2,250a) deliveries in ‘08 … +9%
• ~23Kb) engine installed base
• 11% spare parts growth through 1H’08
Military engines
• 45% unit & 4% spares growth in ’08
• Key programs on new & long term applications
Systems
• 6% revenue growth in ‘08
• Delivering on deal model
Great business model
(a- ~1,350 ‘08 deliveries CFM, ~40 ’08 deliveries EA(b- ~14k of ’08 installed base CFM, ~30 of ’08 installed base EA
CFMI is a 50/50 JV between GE and SnecmaEA is a 50/50 JV between GE and Pratt & Whitney
’08 business overview
($ in billions)
2005 2006 2007
Revenue
Segment profit
$11.8
$16.8
$2.5$2.8
+19%
+13%$3.2
$13.0
’05-’07CAGR
GE job title/6Farnborough Airshow
July 15th, 20086
Commercial engine volume
2005 2008E 2011F
2,250
2,765
1,477
CFM56
CF34 CFM56
CF34
CFM56
CF34
GE90/GEnx/CF6
GE90/CF6
GE90/CF6
Yearly shipments (units)
CFM56 shipments of ~769 in ’05, ~1,350 in ’08 & ~1,400 in ’11CFM56 backlog of ~6K & ~14K installed baseCFMI is a 50-50 JV between GE and SnecmaEA shipments of 40 in ’08 & ~70 in ’11EA backlog of 312EA is a 50-50 JV between GE and Pratt & Whitney
GP7000
GP7000
Installed
base
23,000
CF34
GE90/CF6
CFM56
9,400
CF34
GE90/GEnx/CF6
Backlog
GP7000
CFM56
Single aisle
Regional
Wide body
Installed base enables service growth
GE job title/7Farnborough Airshow
July 15th, 20087
Growth in commercial services
coverage
0
5
10
15
20
25
30
35
2005 2008E 2011F
Annual departures (millions)
$80B
2Q08 2011F
$52B
Commercial CSA backlog
Extensions& new
Currentbase
40% 47%
Source ACAS data and GE AnalysisCFMI is a 50/50 JV between GE and Snecma