Electrical Products Group J. R. Immelt Chairman & CEO May 19, 2009 "Results are preliminary and unaudited. 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 financial condition, and often contain words such as “expect,” “anticipate,” “intend,” “plan,” believe,” “seek,” “see,” or “will.” Forward-looking statements by their nature address matters that are, to different degrees, uncertain. For us, particular uncertainties that could cause our actual results to be materially different than those expressed in our forward-looking statements include: the severity and duration of current economic and financial conditions, including volatility in interest and exchange rates, commodity and equity prices and the value of financial assets; the impact of U.S. and foreign government programs to restore liquidity and stimulate national and global economies; the impact of conditions in the financial and credit markets on the availability and cost of GE Capital’s funding and on our ability to reduce GE Capital’s asset levels and commercial paper exposure as planned; the impact of conditions in the housing market and unemployment rates on the level of commercial and consumer credit defaults; our ability to maintain our current credit rating and the impact on our funding costs and competitive position if we do not do so; the soundness of other financial institutions with which GE Capital does business; the adequacy of our cash flow and earnings and other conditions which may affect our ability to maintain our quarterly dividend at the current level; the level of demand and financial performance of the major industries we serve, including, without limitation, air and rail transportation, energy generation, network television, real estate and healthcare; the impact of regulation and regulatory, investigative and legal proceedings and legal compliance risks; strategic actions, including acquisitions and dispositions and our success in integrating acquired businesses; and numerous other matters of national, regional and global scale, including those of a political, economic, business and competitive 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.” “In this document, “GE” refers to the Industrial businesses of the Company including GECS on an equity basis. “GE (ex. GECS)” and/or “Industrial” refer to GE excluding Financial Services.” Weathering the recession
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GE-2009 Electrical Products Group (EPG) Conference
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Electrical Products Group
J. R. ImmeltChairman & CEO
May 19, 2009"Results are preliminary and unaudited. 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 financial condition, and often contain words such as “expect,” “anticipate,” “intend,” “plan,” believe,”“seek,” “see,” or “will.” Forward-looking statements by their nature address matters that are, to different degrees, uncertain. For us, particular uncertainties that could cause our actual results to be materially different than those expressed in our forward-looking statements include: the severity and duration of current economic and financial conditions, including volatility in interest and exchange rates, commodity and equity prices and the value of financial assets; the impact of U.S. and foreign government programs to restore liquidity and stimulate national and global economies; the impact of conditions in the financial and credit markets on the availability and cost of GE Capital’s funding and on our ability to reduce GE Capital’s asset levels and commercial paper exposure as planned; the impact of conditions in the housing market and unemployment rates on the level of commercial and consumer credit defaults; our ability to maintain our current credit rating and the impact on our funding costs and competitive position if we do not do so; the soundness of other financial institutions with which GE Capital does business; the adequacy of our cash flow and earnings and other conditions which may affect our ability to maintain our quarterly dividend at the current level; the level of demand and financial performance of the major industries we serve, including, without limitation, air and rail transportation, energy generation, network television, real estate and healthcare; the impact of regulation and regulatory, investigative and legal proceedings and legal compliance risks; strategic actions, including acquisitions and dispositions and our success in integrating acquired businesses; and numerous other matters of national, regional and global scale, including those of a political, economic, business and competitive 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.”
“In this document, “GE” refers to the Industrial businesses of the Company including GECS on an equity basis. “GE (ex. GECS)” and/or “Industrial” refer to GE excluding Financial Services.”
Reinsurance/FGICFinancial AssurancePlastics/SiliconesIndustrial Supply4 TV Stations
Timely exits ($60B)
GE competitiveadvantage
JRI EPG 05-19-09/24
Reposition Capital Finance
Profitable franchise
Future
� Domain-based verticals� Align with brand� Origination + risk� Competitive with banks
Today
Assets $540 ~$400-450
($ in billions)
Core55%
Global banks15%
Verticals15%
Restructuring15%
Core &verticals85%
Global banks15%
Strong GE connection
�Mortgages�EquipmentServices
�Some consumer
� Lower leverage … more regulation
� “Low stress” funding … diversified
� Fewer competitors
Fit with the era
Valuable franchise withstrategic flexibility
JRI EPG 05-19-09/25
Launch new technologies
Big pipeline in place
� Broad technical & content leadership in big industries+ Energy+ Healthcare+ Media
� Build unique systems that utilize breadth+ Smart Grid
� Bring big impact GRC-brand technologies to market
Technology investment(2000-2009)
Product Content
� Global position
� Stimulus support
$50
$40
($ in billions)
Consistent investment over the past decade …multiple new platforms launching in 2009-10
20,000+patents
JRI EPG 05-19-09/26
Broad based Energy leadership
“Green Industrial”
Clean coal Electrification
ABWR/ESBWR
Base load Renewables Oil & Gas
Wind
“Integrated riser”
Billions of GE content in each plant
World’s biggest renewables business
Technicalleadership in O&G
Solar
� Launching thin film
� Launching 2.5MW
� Global growth
Only U.S.
basedplayer
Duke-GEfirst plantin 25 yrs.
�Water reuse�Waste heat recovery
� $2B+ opportunity
JRI EPG 05-19-09/27
Broad based Healthcare leadershipPathology toolsMolecular imaging pipeline
� GE leading in neuro-imaging agents
� Compounds being developed for Alzheimer’s & Parkinson’s
� Therapy being developed with pharma components
� Automating labs with digital tools
� Software engineering co-located with clinical pathologists
�Molecular screening
RL
Portable ultrasound Value MR
� Innovative point-of-care diagnostics
� Portable “at bedside” ultrasound with exceptional image quality
� 20% � cost vs. current low-cost, compact U/S
� High performance, low total-ownership-cost 1.5T MR
� Simplified features easy for new users to learn
� 65% population minimal access to MR … big opportunity
Innovation at all price points
JRI EPG 05-19-09/28
Strong NBCU content across all platformsGlobal cable channels
Comedy
� Enhances NBC’s comedy brand� Ground breaking change in broadcast TV model … eliminates need to program 5 hours per week … should make 8-10 p.m. stronger
� Significant channels growth from 14 in early ’07 … to 67 now … to ~80 planned by 2010
� Distributed throughout Asia, Western Europe, U.K., Latam and CEE/Russia
Cable
� Continue development of original series for cable via Universal Cable Productions
� Position cable as next generation “broadcast nets”… opportunity to grow price
Digital: hulu provides premium online leadership
� Continue franchise/event focus with strong comedy � Grow family offerings … 1st illumination title, Despicable Me, in ’10
Film
Robin Hood
Get Him to the Greek
Despicable Me
Funny People
Public Enemies
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System leadership: Smart Grid
$5B Smart Grid opportunities
Smart Grid
Home energy management
� C&I products >85% of energy & peak load in a home
� Enable consumer end of Smart Grid
Smart appliances
� Enable peak savings without affecting consumer life-style
Hybrid electric water heater
� Combines energy savings technology with traditional system
� Same amount hot water at 50% less energy
Delivering the solutions today…
� Key enabling technology for renewables & PHEV
� Driving grid efficiency/ optimization while reducing carbon footprint
JRI EPG 05-19-09/30
“GRC-led” technologies
IGCC & Co2 sequestration Sodium battery
� $150MM invested� Second generation leadership in locomotives� Broad customer interest� $1B+ opportunity
Military helicopter (GE 38) Airborne electric power
� Co-development of Smart Grid products and technologies
Energy
Aviation
Rail
Oil & Gas
Goal: partner with national champions locally … go global together
JRI EPG 05-19-09/36
Win in big themes
“Affordable healthcare”“Clean technology”
“Green is green” “Health is wealth”
� Play in world’s biggest markets� Utilize GE’s broad capabilities� Drive technology & innovation� Benefits … customer, investor, employee, public
ecomagination + healthymagination
JRI EPG 05-19-09/37
Position in essential themes
Lead in clean energy
$17
~$25
$6
'04 '08 '10F
Revenues
� R&D leadership
� Reputation/brand
� Saved $0.5B by reducing carbon footprint
� Customer partnerships
� 72+ products� Big pipeline
ecomagination($ in billions)
JRI EPG 05-19-09/38
For customersInvest $6B to launch 100+ innovations that lower cost, increase access and improve quality by 15%. Focus on efficient technologies, healthcare IT, more access and consumer-driven health
For employeesDrive better employee health through “Healthy Worksite” program to increase wellness and competitiveness; target annual cost increases to less than rate of inflation (CPI)
For investorsAchieve long-term healthcare organic growth of 2-3x GDP; grow healthcare “value gap” from $500MM today to higher levels in the future
For publicBe transparent … partner with others … engage thought and policy leaders
Utilize GE’s technical breadth, global position & financial strengthto support healthcare with cost, access & quality targets