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1 Morningstar 11/7/13 GE Healthcare Driving Innovation Tom Gentile President & CEO GE Healthcare Systems Morningstar Management Behind the Moat Conference 7 November 2013
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GE Healthcare Driving Innovation...MR guided focused ultrasound by InSightec, Ltd. Regulatory Procedure Approvals •2006 – FDA Uterine fibroids •2012 – FDA Bone metastasis •2013

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Page 1: GE Healthcare Driving Innovation...MR guided focused ultrasound by InSightec, Ltd. Regulatory Procedure Approvals •2006 – FDA Uterine fibroids •2012 – FDA Bone metastasis •2013

1 Morningstar

11/7/13

GE Healthcare

Driving Innovation Tom Gentile President & CEO GE Healthcare Systems Morningstar Management Behind the Moat Conference

7 November 2013

Page 2: GE Healthcare Driving Innovation...MR guided focused ultrasound by InSightec, Ltd. Regulatory Procedure Approvals •2006 – FDA Uterine fibroids •2012 – FDA Bone metastasis •2013

2 Morningstar

11/7/13

Caution Concerning Forward-Looking Statements: 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: current economic and financial conditions, including volatility in interest and exchange rates, commodity and equity prices and the value of financial assets; potential market disruptions or other impacts arising in the United States or Europe from developments in sovereign debt situations; the impact of conditions in the financial and credit markets on the availability and cost of General Electric Capital Corporation’s (GECC) funding and on our ability to reduce GECC’s asset levels as planned; the impact of conditions in the housing market and unemployment rates on the level of commercial and consumer credit defaults; changes in Japanese consumer behavior that may affect our estimates of liability for excess interest refund claims (GE Money Japan); pending and future mortgage securitization claims and litigation in connection with WMC, which may affect our estimates of liability, including possible loss estimates; 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 adequacy of our cash flow and earnings and other conditions which may affect our ability to pay our quarterly dividend at the planned level or to repurchase shares at the planned level; GECC’s ability to pay dividends to GE at the planned level; our ability to convert pre-order commitments into orders; the level of demand and financial performance of the major industries we serve, including, without limitation, air and rail transportation, energy generation, real estate and healthcare; the impact of regulation and regulatory, investigative and legal proceedings and legal compliance risks, including the impact of financial services regulation; our capital allocation plans, as such plans may change and affect planned share repurchases and strategic actions, including acquisitions, joint ventures and dispositions; our success in completing announced transactions and integrating acquired businesses; the impact of potential information technology or data security breaches; 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. “This document may also contain non-GAAP financial information. Management uses this information in its internal analysis of results and believes that this information may be informative to investors in gauging the quality of our financial performance, identifying trends in our results and providing meaningful period-to-period comparisons. For a reconciliation of non-GAAP measures presented in this document, see the accompanying supplemental information posted to the investor relations section of our website at www.ge.com.” “In this document, “GE” refers to the Industrial businesses of the Company including GECC on an equity basis. “GE (ex. GECC)” and/or “Industrial” refer to GE excluding Financial Services.” GE’s Investor Relations website at www.ge.com/investor and our corporate blog at www.gereports.com, as well as GE’s Facebook page and Twitter accounts, contain a significant amount of information about GE, including financial and other information for investors. GE encourages investors to visit these websites from time to time, as information is updated and new information is posted.

Page 3: GE Healthcare Driving Innovation...MR guided focused ultrasound by InSightec, Ltd. Regulatory Procedure Approvals •2006 – FDA Uterine fibroids •2012 – FDA Bone metastasis •2013

3 Morningstar

11/7/13

GE Healthcare ~$20 billion global business unit of GE

53,000 employees worldwide

~$1 billion/year investment in R&D

Leadership businesses

Healthymagination focused on:

Affordability Increased

access

Improved quality

At work for a healthier world …

Healthcare Systems

Main products

CT DGS

MR U/S

MI LCS

Services

Rev. $14B

Life Sciences

Main products

Bioprocess

Cell technologies

Research

Consumables

Healthcare IT

Main products

PACS

RIS

Ambulatory EMR

Caradigm (MS JV)

Rev. $2B

PET/SPECT Tracers

Clarient/Pathology

Genomics

Rev. $4B

Page 4: GE Healthcare Driving Innovation...MR guided focused ultrasound by InSightec, Ltd. Regulatory Procedure Approvals •2006 – FDA Uterine fibroids •2012 – FDA Bone metastasis •2013

4 Morningstar

11/7/13

0

10

20

30

40

50

60

70

80

60 66 72 78 84 90 96 02 08

Cu

mu

lati

ve

Sc

ree

nin

g

Init

iati

ve

s

Other trends creating significant opportunity

Growing cancer screening

Global procedures in millions

‘07 ’16E

5

10

15 CAGR

>10%

Screen &

Diagnose Treat Monitor

Segment $B

Growth %

CM % 40%

5%

20

60%

15%

25

50%

6%

8

Growing MIS

Breast

Colon

Cervix

Growing Molecular Dx

$0.36 $0.94

$2.7 $3.65

$5.3

1995 2000 2005 2009 2012

CAGR ~17%

Clinical molecular Dx segment

Source: Kalorama Information

($ in billions)

Accelerating globalization

HCS Sales

80% 74%

20% 26%

2009 2012

Developed

Emerging

CAGR

15%

3%

$10.9 $12.8 5%

($ in millions)

Despite continuing pressure on healthcare costs, we see positive opportunities

Page 5: GE Healthcare Driving Innovation...MR guided focused ultrasound by InSightec, Ltd. Regulatory Procedure Approvals •2006 – FDA Uterine fibroids •2012 – FDA Bone metastasis •2013

5 Morningstar

11/7/13

New growth less concentrated, more complex

Global healthcare structural dynamics

2010 GDP per capita ( USD, PPP adjusted)

Healthcare spend by country

Healthcare spending % of GDP

Swiss

Source: World Bank

China Russia

Indonesia

Brazil

KSA

Kazakhstan

~1B people ~$5.2T spend 39 countries

US

~5B people ~$1.2Tspend 178 countries

Germany France

Korea

Japan Spain

Italy UK

Netherland

Australia Israel

Portugal

India

UAE

Poland

Hungary South Africa Czech

Very high spend.. GDP growth at best

Growing healthcare % of GDP

…multiplier effect

0

2

4

6

8

10

12

14

16

18

0 10,000 20,000 30,000 40,000 50,000

+3%

+15%

Page 6: GE Healthcare Driving Innovation...MR guided focused ultrasound by InSightec, Ltd. Regulatory Procedure Approvals •2006 – FDA Uterine fibroids •2012 – FDA Bone metastasis •2013

6 Morningstar

11/7/13

Anesthesia delivery system in Africa

Advancing safe surgery in Africa

Current Situation Technology & Rationale

• Two physicians for every 10,000 people

• 0.4 hospital beds per 1000 people.

• Poorest ~35% receive only 3.5% of all surgeries

• 99% of maternal deaths in resource poor countries

• Average of 1 maternal death per 100 live births.

• Anesthesia tremendous risk in developing countries

• UK has 400x more anesthesiologist than Uganda

• Launched in Kenya on November 12, 2012

• Created specifically for developing countries

• Cost =~$10,000 (varies by location & configuration)

• Enhanced capabilities – Integrated Sp02

• Compact breathing system to minimize leaks

• Battery lasts up to 6 hours

• Clinical education and training program

Carestation 30

Page 7: GE Healthcare Driving Innovation...MR guided focused ultrasound by InSightec, Ltd. Regulatory Procedure Approvals •2006 – FDA Uterine fibroids •2012 – FDA Bone metastasis •2013

7 Morningstar

11/7/13

Vscan TM – Pocket-sized ultrasound

A leader in pocket-sized ultrasound

Description

• Pocket-sized, hand held ultrasound

Benefits

• Variety of clinical applications

• Immediate visualization

• Up to 1 hour continuous scanning capability

• Simplified presets for Abdominal, Cardiac & OB

GE Difference

• Currently the only device this size with these

features at this price point

Page 8: GE Healthcare Driving Innovation...MR guided focused ultrasound by InSightec, Ltd. Regulatory Procedure Approvals •2006 – FDA Uterine fibroids •2012 – FDA Bone metastasis •2013

8 Morningstar

11/7/13

Ultrasound pregnancy exam

Check five basic conditions with a V-scan and refer to higher level of care

Muliple births

Breach

Gestational Age

Placenta Previa

Cord issues

Indonesia

Ghana

Millennium development goals

4 & 5:

Reduce maternal and

infant mortality

Page 9: GE Healthcare Driving Innovation...MR guided focused ultrasound by InSightec, Ltd. Regulatory Procedure Approvals •2006 – FDA Uterine fibroids •2012 – FDA Bone metastasis •2013

9 Morningstar

11/7/13

Breast Cancer Leading cause of cancer in

women… ~ 500K deaths per

annum

* Source: WHO, 2008

Aging and increased access

driving global procedures

* Cancer deaths per

thousand patients

Mortality reductions small, but

quality of life years extension high

Most frequent cancer in women – over one million new diagnosis / year

Aligning care to women’s …

Physiology e.g., dense

breasts

Risk Factors e.g., family

history

Type of

Disease e.g., Luminal A,

Luminal B,

HER2+, Triple

neg

Page 10: GE Healthcare Driving Innovation...MR guided focused ultrasound by InSightec, Ltd. Regulatory Procedure Approvals •2006 – FDA Uterine fibroids •2012 – FDA Bone metastasis •2013

10 Morningstar

11/7/13

GE plays across breast care continuum

Current

Planned

IDI

AW

PACS

ViewPoint

Xeleris

IDI

AW

PACS

ViewPoint

PATHSiTE,

Omnyx**

FFDM

DBT

CESM

Other

U/S

MRI

MBI

PET/CT

Clarient

IT

Virtual

Tumor Board

Screening Diagnosis Staging Treatment

Planning Monitoring

Hardware

Software

Services

Wetware MDX Visipaque*, Omnipaque*, Omniscan*, Sonozoid*, Nanocol*

• * No FDA organ-specific indications for breast • ** Product under development. Omnyx products

are for research only. Not for use in diagnostic procedures.

Meet

Grace This is her story

“Connecting” across modalities

Page 11: GE Healthcare Driving Innovation...MR guided focused ultrasound by InSightec, Ltd. Regulatory Procedure Approvals •2006 – FDA Uterine fibroids •2012 – FDA Bone metastasis •2013

11 Morningstar

11/7/13

Scalpelless surgery becoming a reality MR guided focused ultrasound by InSightec, Ltd.

Regulatory Procedure Approvals

• 2006 – FDA Uterine fibroids

• 2012 – FDA Bone metastasis

• 2013 - UF CFDA, Brazil, Canada Bone Brazil, Canada FDA Stage 3 ET Trial FDA Stage 1 Prostate

Non-invasive MR guided surgery

Recent Developments

• Essential tremor study published in New England Journal of Medicine, August, 2013

Comm’l Procedures +18% annually

Non-invasive ablation,

high energy ultrasound

Uterine Fibroid

Bone Cancer

Brain

614 727

12 13 OP2012 2013

Page 12: GE Healthcare Driving Innovation...MR guided focused ultrasound by InSightec, Ltd. Regulatory Procedure Approvals •2006 – FDA Uterine fibroids •2012 – FDA Bone metastasis •2013

12 Morningstar

11/7/13

Precision medicine

A century of ‘mass market’ medicine comes to an end…

Moving to ‘personalized’ patient-based decisions

~$800 B

Market

Theme: Precision Medicine across the continuum of care

• Am I at risk for a disease?

• Do I have a disease?

• What type of disease do I have?

• Should I actively treat my disease?

• Is my disease responding to treatment?

• What further action should I take?

• Physiology

• Risk Factors

• Type of disease CESM

Aligning care around personal factors

Opportunities from advancements in

imaging/multi-omics

Molecular

Platforms

Biomarker

Assessment

Page 13: GE Healthcare Driving Innovation...MR guided focused ultrasound by InSightec, Ltd. Regulatory Procedure Approvals •2006 – FDA Uterine fibroids •2012 – FDA Bone metastasis •2013

13 Morningstar

11/7/13

Monitoring therapies

Built from collaborations between clinical research partners and GE scientists

• Consistent SUV measurements of metabolic activity

• Eight capabilities working together

• Designed to aid in the early determination of treatment effectiveness

Cycles of Chemotherapy

0 1 2 3 4 5 6

Cure

Lower Detection Limit By PET

Size at Diagnosis

0 1 2 3 4 5 6 7 8 9

10 11

# Cells

(log)

12 Patient over treated

Patient appropriately treated

Patient not cured…

needed treatment change

Quantitative PET – Q.Suite Platform

Graphic authorized from:

“Integrating PET and PET/CT into the Risk-Adapted Therapy of

Lymphoma,” Yvette L. Kasamon, Richard J. Jones, and Richard

L. Wahl, J Nucl Med 2007; 48:19S–27S

Page 14: GE Healthcare Driving Innovation...MR guided focused ultrasound by InSightec, Ltd. Regulatory Procedure Approvals •2006 – FDA Uterine fibroids •2012 – FDA Bone metastasis •2013

14 Morningstar

11/7/13

Only GE MICT

DGS MR

LCS

Many breakthrough technologies only available from GE Healthcare

Ultrasound

Automated whole breast ultrasound

CESM

MBI

Metabolic MR w/ Hyperpolarization

Carbon 13

FlightPlan for Liver VSCAN Silent MR

MRg FUS

SnapShot Freeze

VolumeRAD

End Tidal Control

Carestation 30

DoseWatch VEO Super-value MIC

Digital health

Maveric

Page 15: GE Healthcare Driving Innovation...MR guided focused ultrasound by InSightec, Ltd. Regulatory Procedure Approvals •2006 – FDA Uterine fibroids •2012 – FDA Bone metastasis •2013

15 Morningstar

11/7/13

Our purpose… a reminder

At work for a healthier world

Page 16: GE Healthcare Driving Innovation...MR guided focused ultrasound by InSightec, Ltd. Regulatory Procedure Approvals •2006 – FDA Uterine fibroids •2012 – FDA Bone metastasis •2013

16 Morningstar

11/7/13