Confidential. Not to be copied, distributed, or reproduced without prior approval. GE Aviation Cowen and Company Aerospace/Defense & Industrials Conference February 8, 2017 Caution Concerning Forward-Looking Statements: This document contains "forward-looking statements" – that is, statements related to future events that by their nature address matters that are, to different degrees, uncertain. For details on the uncertainties that may cause our actual future results to be materially different than those expressed in our forward-looking statements, see http://www.ge.com/investor-relations/disclaimer-caution-concerning-forward-looking-statements as well as our annual reports on Form 10-K and quarterly reports on Form 10-Q. We do not undertake to update our forward-looking statements. This document also includes certain forward-looking projected financial information that is based on current estimates and forecasts. Actual results could differ materially.
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Confidential. Not to be copied, distributed, or reproduced without prior approval.
GE AviationCowen and Company Aerospace/Defense & Industrials Conference
February 8, 2017
Caution Concerning Forward-Looking Statements:This document contains "forward-looking statements" – that is, statements related to future events that by their nature address matters that are, to different degrees, uncertain. For details on the uncertainties that may cause our actual future results to be materially different than those expressed in our forward-looking statements, see http://www.ge.com/investor-relations/disclaimer-caution-concerning-forward-looking-statements as well as our annual reports on Form 10-K and quarterly reports on Form 10-Q. We do not undertake to update our forward-looking statements. This document also includes certain forward-looking projected financial information that is based on current estimates and forecasts. Actual results could differ materially.
GE PROPRIETARY INFORMATION | Cowen and Company Aerospace/Defense & Industrials Conference 2
GE Aviation portfolio … $26B
A leading provider of jet engines, systems, services … and …
Avionics and Digital Systems $0.8
BGA and Integrated Systems $1.5
Military engines and services $3.5
Commercial engineservices $11.4
$1.0-1)
(1- 2016 external revenue
Commercial engines $8.0
-1)
Additive Manufacturing
GE PROPRIETARY INFORMATION | Cowen and Company Aerospace/Defense & Industrials Conference 3
GE Aviation
Aviation commercial environment
TrafficTY% change, (IATA), RPKs
Load factors% PLF (IATA)
Fuel cost$/bbl
Freight trafficTY% change, (IATA), FTKs
Departures Millions (IATA)
Airline profits$Billions (IATA)
3.5%
5.1%
WTI
Jet Fuel
2017F
2017F
2017F
2017F
36.6
3.4%
5.9%80%80%
2016E
2016E
2016E
2016E
2016E
~$53
$65
$43
$52
2017F
$30$36
2016E
38.4
2017F
IATA economic performance report, EIA, GE Analysis
GE PROPRIETARY INFORMATION | Cowen and Company Aerospace/Defense & Industrials Conference4
Commercial engines
GE PROPRIETARY INFORMATION | Cowen and Company Aerospace/Defense & Industrials Conference 5
Commercial engine portfolio: today and tomorrow
Production volume Widebody Narrowbody Regional/Biz
960 1,460
1,500
1,790
‘20F‘13
3,300
2,600
I NS T AL L ED F L EET
Commercial Engine Backlog
$28B
4Q ‘16
44K33K
GE and JV engines (at 3% CAGR)
EA
CFM
GE
GE PROPRIETARY INFORMATION | Cowen and Company Aerospace/Defense & Industrials Conference
* CFM is a 50/50 JV between GE and Snecma** EA is a 50/50 JV between GE and Pratt & Whitney*** Program currently under evaluation
C919*
Global 7000
Turboprop***(next opportunity)
737MAX*
777X
A380**
747-8
787
A320neo* ARJ21
6
Successful wide-body transition
GE PROPRIETARY INFORMATION | Cowen and Company Aerospace/Defense & Industrials Conference
60%W I N R A T E
Fastest-selling GE widebody engine
99.95+% GEnx dispatch reliability
1,900+ engines ordered … 1,200 shipped
2020Engines in service~800 shop visits in 2016
2,750 aircraft in operation
Claims based on GE estimatesGEnx win rate does not include undecided engine campaigns
~1,900
‘20F
850
‘15
CF6 … delivering today GEnx … securing tomorrow
57% of twin-aisle aircraft CF6-powered*
NEW ENGINE
deliveries beyond
* Excluding 787 & A350 aircraft
7
Engine of choice for narrowbodies
CFM56 … delivering today
Record deliveriesin 2016
80% A320 family win rate on production transition
30,000+ engines delivered
LEAP … securing tomorrow
11,600+ on order
LEAP production
Ranked #1 by investors in 2016 AirFinance Journal Engine Survey
#1 Residual Value
#1 Remarketing Potential
#1 Investor Appeal
Unprecedented customer confidence
1,5701,652
‘15 ‘16
1,534
‘14
737MAX A320neo
C919
A320neo
LEAP GTF
CFM, CFM56 and the CFM Logo are trademarks of CFM International, a 50/50 joint company of GE and Safran Aircraft Engines. LEAP is a trademark of CFM International.
77
~2,000
‘20F‘16 ‘17F
~500
GE PROPRIETARY INFORMATION | Cowen and Company Aerospace/Defense & Industrials Conference 8
Typical aircraft turn around
6 airlines to date
High aircraft utilization
Operating well in severe climates
Outstanding engine reliability
Proven in service
CFM, CFM56 and the CFM Logo are trademarks of CFM International, a 50/50 joint company of GE and Safran Aircraft Engines.LEAP is a trademark of CFM International.
LEAP-1A in-service performance
25
11
A320neo launch
60
up to
M I N U T Et u r n t i m e s
F L I G H T Sp e r d a y
E N G I N E Si n - s e r v i c e
104o FO U T S I D E A I RT E M P E R A T U R E
0E N G I N Er e m o v a l s
L O W E R F U E Lc o n s u m p t i o n
LEAP-1A entry into servicePegasus AirlinesAug. 2nd , 2016
LEAP entry into service best ever so far
15%
“We are absolutely delighted with the operation of this engine. There has not been a single glitch”
Mehmet Nane, Pegasus Airlines CEO
GE PROPRIETARY INFORMATION | Cowen and Company Aerospace/Defense & Industrials Conference 9
The next chapter in wide-body engines
GE PROPRIETARY INFORMATION | Cowen and Company Aerospace/Defense & Industrials Conference 10
135 aircraft on order
2,400+ engines delivered
Sole source on 777X
Next-generation twin widebody is REAL
5BETTERfuel efficiency
vs. ANY engine I N C L A S S
70 operators
Claims based on GE estimates
Fleet in service
2,400
2,800
’16 ’20F
The
STANDARDby which all widebodiesare measured
%
GE90 … delivering today GE9X … securing tomorrow
-1) GE90 engines powering 777-200ER, 777-300, 777-200LR, 777-200LRF, and 777-300ER
-1)
BEST architecture, aero and materials technology in industry
650E N G I N E S
Technology Excellence
GE PROPRIETARY INFORMATION | Cowen and Company Aerospace/Defense & Industrials Conference 11
GE model … differentiate through technology leadership to meet airline needs
GE PROPRIETARY INFORMATION | Cowen and Company Aerospace/Defense & Industrials Conference 12
GE Experience
• GE90: 2,800 / 100M
• GEnx: 1,900 / 35M
• LEAP: 5,700 / 26M2020: engines / hours
Airline needs
• High utilization
• High fuel efficiency
• High reliability
• High durability
+
Architecture Aerodynamics Materials
GE Store
• Global Research Center
• Digital Analytics
• Additive Technology
• Cross Business sharing
Unique Architecture, Aero and Material technologies
+ =
160 ME N G I N E S H O U R S
10,400
Differentiated products
GE9X
Architecture the foundation for continued reliability advantageFewer delays and disruptions, more flights
1. Direct drive RELIABILITYLower complexity
2. Lightweight LP turbine RELIABILITYLower stress
3. Debris-rejection DURABILITYCore protection
4. Lean-burn combustion DURABILITYMore even temps
Competitive Advantage
REMOVALRATE 42%
L O W E RGE90 34%
L O W E RGEnx
DelayRATE 37%
L O W E RGE90 14%
L O W E RGEnx
GE PROPRIETARY INFORMATION | Cowen and Company Aerospace/Defense & Industrials Conference
1
24
3
13
Aerodynamics enable engine efficiency
GE PROPRIETARY INFORMATION | Cowen and Company Aerospace/Defense & Industrials Conference
Doing more with less
16Fan blades
Advanced modeling and testing enhance LPT efficiency