November 2013 (PDF) - GE.com

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December 17, 2013 To the Investment Community, On November 7, Thomas Gentile, Senior Vice President, President & CEO Healthcare Systems, presented at the Morningstar Management Behind the Moat Conference. Mr. Gentile described examples of GE Healthcare’s wide array of products that will continue to provide opportunities for GE. Access the presentation materials. On November 13, David Joyce, President and CEO GE Aviation, presented at the Goldman Sachs Industrial Conference. Mr. Joyce spoke about the continued growth of the Aviation business, its improved technological manufacturing capabilities, and the customer value delivered with its new Minds + Machines technology. Access the presentation materials. On November 15, GE Vice Chairman and GE Capital CEO Keith Sherin and GE CFO and Senior Vice President Jeff Bornstein, as well as members of the GE Capital leadership team, hosted the 2013 GE Capital Investor Meeting in Norwalk, Connecticut. The team highlighted the sale of the North America retail finance business in a two-step process. They also highlighted how this deal and other actions have allowed the company advance toward its commitments to shareholders to reduce share count, achieve the 70%/30% mix of Industrial/Capital, and more. Access the presentation. Business Highlights Industrial Businesses page 3 GE Capital page 7 Other Company News page 8 Investor Events page 8 Contact Trevor A. Schauenberg Vice President Corporate Investor Communications 3135 Easton Turnpike Fairfield, CT 06828 USA T 203 373 2424 F 203 373 2071 [email protected] November 2013 Investor Update

Transcript of November 2013 (PDF) - GE.com

December 17, 2013

To the Investment Community,

On November 7, Thomas Gentile, Senior Vice President, President & CEO Healthcare Systems, presented at the Morningstar Management Behind the Moat Conference. Mr. Gentile described examples of GE Healthcare’s wide array of products that will continue to provide opportunities for GE. Access the presentation materials.

On November 13, David Joyce, President and CEO GE Aviation, presented at the Goldman Sachs Industrial Conference. Mr. Joyce spoke about the continued growth of the Aviation business, its improved technological manufacturing capabilities, and the customer value delivered with its new Minds + Machines technology. Access the presentation materials.

On November 15, GE Vice Chairman and GE Capital CEO Keith Sherin and GE CFO and Senior Vice President Jeff Bornstein, as well as members of the GE Capital leadership team, hosted the 2013 GE Capital Investor Meeting in Norwalk, Connecticut. The team highlighted the sale of the North America retail finance business in a two-step process. They also highlighted how this deal and other actions have allowed the company advance toward its commitments to shareholders to reduce share count, achieve the 70%/30% mix of Industrial/Capital, and more. Access the presentation.

Business HighlightsIndustrial Businesses page 3

GE Capital page 7

Other Company News page 8

Investor Events page 8

ContactTrevor A. Schauenberg Vice President Corporate Investor Communications

3135 Easton Turnpike Fairfield, CT 06828 USA

T 203 373 2424 F 203 373 2071 [email protected]

November 2013 Investor Update

As always, for all presentations, news and other helpful information please visit our investor website at http://www.ge.com/investor, or follow us on twitter at @GE_Reports.

Please see “GE Reports” to keep informed about the latest company developments. We will update it daily to share information and our perspectives on GE activities around the world. Please visit our website at http://www.gereports.com/

Regards,

Investor Update continued

Results are preliminary and unaudited.

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 flows and earnings and other conditions, which may affect our ability to pay our quarterly dividend at the planned level or to repurchase shares at planned levels; 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; our ability to complete the staged exit from our North American Retail Finance business as planned; 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.

POWER AND WATERPower Gen Products/Distributed Power

• GE has signed a nearly $700 million contract with Saudi Electricity Company (SEC) to bring additional F-class combined-cycle gas turbines, and associated equipment and services, to the Kingdom of Saudi Arabia. GE’s technology will support SEC’s large, combined-cycle power plants to generate more than 3.8 gigawatts (GW) of power and will provide significant fuel savings and lower emissions to meet the Kingdom’s growing energy needs. Read the press release.

• GE announced that its two advanced-technology aeroderivative gas turbines that will help power the Krasnodar region and the peak loads of the 2014 Winter Olympic Games in Sochi, Russia, entered commercial operation. The units are located at Inter RAO’s Dzhubginskaya thermal power plant (TPP), which features the highest efficiency simple-cycle gas turbine available with modular design, advanced protection from natural disasters and the latest environmental technologies. Read the press release.

Renewables

• GE won 545 megawatts (MW) of orders for wind turbines in Brazil’s A-3 auction. The total amount of energy auctioned was 867 MW and GE secured 63 percent of the auction capacity. GE will provide 1.7-100 and 1.85-82.5 turbines for wind farms developed by Casa dos Ventos, Eletrosul, Contour Global, CEEE, PEC, Rio Energy and Chesf in the Brazilian states of Rio Grande do Sul, Bahia and Piauí. GE also will service the wind turbines for 10 years as part of an operations and maintenance agreement that includes an availability guarantee for the 26 wind farms. Read the press release.

• GE announced that it will supply Golden West Power Partners LLC with 147 GE 1.7-100 brilliant wind turbines for the Golden West Wind Farm in El Paso County, Colorado. Once operational, the Golden West Wind Farm will produce 249.9 megawatts of electricity, which would be equivalent to the required energy needs of approximately 77,500 homes in the United States. Read the press release.

Water

• GE-produced water evaporation technologies have been selected by Brion Energy (formerly Dover Operating Corp.) for Phase 1 of the MacKay River Commercial Project near Fort McMurray, Alberta, Canada. By using GE’s produced water evaporation process, the project will recover 99 percent of the produced and makeup water fed to the plant for reuse as boiler feedwater. Read the press release.

Industrial Businesses

November 2013 Investor Update 3

OIL & GAS• Indonesia Vice Minister of Energy and Mineral Resources H.E. Susilo Siswoutomo

officiated the grand opening of GE’s newly expanded Batam Island subsea manufacturing facility. The facility features a new high bay workshop that will enable GE to begin manufacturing its first vertical subsea production trees in the Asia-Pacific region and increase local content in Indonesia. The expansion has created nearly 30 new jobs at the facility and is expected to add another 50 to 70 new jobs over the next three years. Read the press release.

• Highlighting efforts to develop the next generation of young engineers and other technical workers for the global oil and gas industry, GE Oil & Gas and Kuwait Oil Company (KOC) have launched a new Competency Development training collaboration. KOC is a subsidiary of Kuwait Petroleum Company. GE and KOC announced their initiative at the ADIPEC 2013 energy conference in Abu Dhabi. GE also showcased a number of other initiatives, including a Young Engineers Panel entitled “Powering the Future of the Oil and Gas Industry 2014.” Read the press release.

ENERGY MANAGEMENT• GE’s Power Conversion business announced that it has finalized the acquisition of the Chilean power electronics

company Ingeniería y Desarrollo Tecnológico S.A. (IDT). With this move, Power Conversion is actively positioning the company to build a stronger regional presence and capture a greater share of the mining segment. IDT designs, develops and manufactures integrated solutions in the field of power electronics with its key innovations targeting the mining industry in Chile and Peru. Read the press release.

• To create a modernized electrical network and equip Aruba with secure, high-capacity and long-range wireless coverage for its complete network, ELMAR— the country’s power utility company—has turned to GE’s RF Grid IQTM point-to-multipoint advanced metering infrastructure (AMI). The installation of GE’s AMI solutions will create an all-encompassing wireless metering network, providing ELMAR with crucial electrical usage and power generation data to improve grid efficiency and functionality, while also enabling the integration of renewable energy sources into the grid. Read the press release.

• The city of Holly Springs, Mississippi, has contracted GE to provide its subscription-based Solutions as a Service (SaaS) to modernize its utility grid. The SaaS package provides a complete, multi-utility solution for municipalities looking to modernize their utility infrastructure. Under the terms of the agreement, GE will provide Holly Springs with a pre-integrated package of services ranging from electric, water and gas meter services for the city’s advanced metering infrastructure to prepaid electric billing on a consumer web portal. The package also includes services such as outage detection, asset monitoring and support for the city’s grid—for 10 years. Read the press release.

Industrial Businesses continued

November 2013 Investor Update 4

AVIATION• Emirates has committed to acquiring 300 GE9X engines for its new 777X fleet. The

agreement for the GE9X engines is worth more than $11 billion list price. With the commitment by Emirates airlines for 150 Boeing 777X twin-engine aircraft announced at the Dubai Air Show, GE Aviation has secured its largest-ever commercial jet engine award from an airline. Read the press release.

• Qatar Airways ordered 50 GE9X-powered Boeing 777X aircraft. List price for these engines is valued at more than $3.8 billion. The GE9X engine for Boeing’s 777X aircraft will be in the 100,000-pound thrust class with a 10 percent improvement in fuel burn over today’s GE90-115B. Read the press release.

• Etihad Airways announced its selection of GE engines to power its order for 56 Boeing wide-body aircraft, which is part of an extensive fleet expansion for the airline. Etihad’s order includes a commitment for 25 GE9X-powered Boeing 777X, 30 GEnx-1B-powered Boeing 787-10 and one GE90-115B-powered Boeing 777-200LR aircraft. The list price for these engines is valued at more than $3 billion. Read the press release.

• Turkish Airlines (THY) has firmed options for five additional GE90-115B-powered Boeing 777-300ER aircraft. THY has also signed a 15-year OnPointSM solution agreement for the maintenance, repair and overhaul of its new GE90-115B engines on 20 Boeing 777-300ER fleet and extended an existing OnPoint solution agreement by five additional years for its GE90-115B engines that power 12 Boeing 777 aircraft. The total engine list price and OnPoint solution agreement are valued at more than $2 billion. Read the press release.

• GE Aviation, a global leader in jet engine and aircraft system production, hosted a groundbreaking ceremony at the site of its new advanced composites factory near Asheville in Western North Carolina. The new 170,000-square-foot facility will be the first in the world to mass produce engine components made of advanced ceramic matrix composite (CMC) materials. GE will begin hiring at the new CMC components plant in 2014. Within five years, the workforce at the plant is expected to grow to more than 340 people. Read the press release.

HEALTHCARE• GE Healthcare Life Sciences launched Xuri™, a new technology family designed specifically

to support and advance the field of cell therapy. The new technology family, in which the first product is the Xuri Cell Expansion System W25 for the manufacture of cellular immunotherapies in a clinical setting, will combine GE Healthcare’s capabilities in cellular science with the company’s expertise in the development of advanced tools for the manufacture of biopharmaceuticals. Read the press release.

• GE Healthcare announced that it has received approval from the U.S. Food and Drug Administration (FDA) to allow the company to manufacture Optison™ (Perflutren Protein-Type A Microspheres Injectable Suspension, USP) in-house. Optison is a contrast agent that may improve the visualization of the left ventricular border, an area of the heart that is critical to see in order to assess and diagnose certain heart diseases. As a result of the FDA’s action, GE Healthcare will provide a supply of Optison to the U.S. and European markets from its manufacturing facility in Oslo, Norway, becoming the only contrast media manufacturer to supply its own stock to the U.S. Read the press release.

Industrial Businesses continued

November 2013 Investor Update 5

TRANSPORTATION• GE Transportation announced the first sale of its new 12V250 Marine Diesel Engine that

meets ecomagination standards and is designed to meet EPA Tier 4i and IMO Tier III Emissions standards. GE’s breakthrough technology eliminates the need for a urea-based after-treatment emissions reduction system, providing more valuable cargo space, and reduces emissions by 50 percent. Read the press release.

• CSX Corporation and GE Transportation announced an agreement to explore emissions- cutting and efficiency breakthroughs in Liquefied Natural Gas (LNG) technology for locomotives beginning with a pilot program in 2014. Read the press release.

• GE Transportation’s Optimization Solutions, a leading provider of transportation management software and analytics to the railroad industry, is demonstrating several extensions to its OASIS intermodal terminal operating software system. These new technologies aimed at reducing terminal operating costs and improve terminal throughput will be featured during the 31st Annual Intermodal Expo. Installed at over 100 terminals across North America, GE Transportation’s OASIS System is a leading intermodal rail terminal operating system (TOS) software used by terminal operators to manage, plan and optimize terminal operations. Read the press release.

APPLIANCES AND LIGHTING• GE Lighting’s Albeo™ ABHX-Series LED High Bay Lighting

fixture has earned a 2013 Architectural Products Magazine Product Innovation Award, which recognizes innovation in the development and refinement of buildings-related products. The Albeo ABHX-Series LED lighting fixture can replace a range of legacy lighting systems—400-watt to 1500-watt HID and four to eight-lamp T5/T8 high-intensity fluorescent high bay lighting— in warehouses, cold storage areas and other commercial spaces with high ceilings. Read the press release.

Industrial Businesses continued

November 2013 Investor Update 6

November 2013 Investor Update 7

GE Capital Aviation Services (GECAS)

• GECAS announced delivery of four leased Boeing 737-800 aircraft to Hainan Airlines to expand the carrier’s fleet. Hainan Airlines operates a fleet of more than 120 aircraft to some 90 destinations around the world. Read the press release.

• GECAS announced delivery of a new leased Airbus A320 to Japanese low-cost carrier Star Flyer to expand the airline’s fleet. The aircraft comes from GECAS’ existing order book with Airbus. Read the press release.

Commercial Lending & Leasing (CLL)

• GE Capital, Healthcare Financial Services, announced that it has amended its existing $6.6 million senior secured credit facility to Infraredx, Inc. to provide an additional $13.4 million multi-draw term loan facility, and to modify the terms of the existing facility. GE Capital, Healthcare Financial Services is acting as administrative agent for the credit facility. The financing will be used to support the company’s commercialization efforts. Read the press release.

• GE Capital, Canada announced it has provided $1.9 million in equipment financing to Koss Aerospace, a Tier-2 manufacturer of structural aircraft components and assemblies. The funds are being used to finance the acquisition of state of the art production equipment. GE Capital also provided Koss with GE Aerospace market intelligence and manufacturing expertise, along with access to OEMs, and Tier-1 contacts to support the company’s growth initiatives. Read the press release.

• GE Capital, Healthcare Financial Services, announced that it is serving as administrative agent and sole lender on a $7.5 million senior secured multi-draw term loan for BENU, Inc. The loan refinances current debt and will support the company’s growth initiatives. Read the press release.

• GE Capital’s Commercial Distribution Finance business announced that it will provide inventory financing to dealers affiliated with Massimo Motor. Based in Irving, Texas, Massimo distributes a range of motorsports products, including all-terrain vehicles (ATVs) and side-by-side or utility-terrain vehicles (UTVs). Read the press release.

GE Capital

CITIZENSHIP, ECOMAGINATIONSM, HEALTHYMAGINATION • GE Global Research is proud to announce that Dr. Marshall Jones, a world renowned expert on laser manufacturing, is

a recipient of the 2013 University of Massachusetts Amherst “Salute to Service” award. Jones was presented with the award during a ceremony in Boston. Read the press release.

• Popular Science magazine has recognized GE’s 2.5-120 brilliant wind turbine with its 2013 “Best of What’s New” award in the “Green” category. Announced in January, the 2.5-120 is GE’s first brilliant turbine, which harnesses the power of the Industrial Internet to analyze tens of thousands of data points every second, providing short-term predictable power and communicating seamlessly with neighboring turbines, service technicians and operators. Read the press release.

• GE is celebrating the record-breaking results of translating aerodynamic engineering into a power generating innovation. By marrying its unique aviation expertise with its heavy-duty gas turbine experience, GE created the breakthrough F-class gas turbine technology. That GE technology, introduced in 1990, now represents the world’s largest fleet of F-class power—more than all other manufacturers combined—providing 260 gigawatts of power in 58 countries. GE’s fleet of F-class gas turbines was the first to achieve:

• 50 million operating hours and 1 million starts.• 99.4 percent yearly reliability.• Single-digit NOx emissions.

Read the press release.

November 2013 Investor Update 8

Other Company News

RECENT INVESTOR EVENTSVisit the Events & Presentations section of our investor website to view the presentations.- October 9, 2013*: Minds + Machines 2013- October 18, 2013*: GE 3rd Quarter 2013 Earnings Webcast- November 7, 2013: Morningstar Management Behind the Moat Conference - November 13, 2013*: Goldman Sachs Industrial Conference- November 15, 2013*: GE Capital Investor Meeting- December 4, 2013: Credit Suisse Industrials Conference

UPCOMING INVESTOR EVENTS (subject to change)- December 18, 2013**: GE Annual Outlook Meeting

Jeff Immelt, Chairman and CEO, will host our annual review of GE’s performance and provide a business outlook.

- January 17, 2014**: GE 4th Quarter & Total Year 2013 Earnings Webcast Jeff Immelt, Chairman and CEO; Jeff Bornstein, Senior Vice President and CFO; and Trevor Schauenberg, VP Investor Communications will host a webcast to discuss 4th quarter and total year 2013 results.

* Webcast replays are retained on our website for a limited period of time. **Meeting will be webcast.