Slide 1: GE second quarter 2022 performance
GE second quarter 2022 performance Financial results & company highlights July 26, 2022 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 degree
Slide 2: Planned spins on track
Planned spins on track RECENT PROGRESS Announced new company names and branding … well received by key stakeholders HealthCare spin milestones … plan to file confidential Form 10 shortly; submitted request for IRS private letter ruling, completed European Works Council consultation ... moving forwar
Slide 3: 2Q'22 snapshot
2Q'22 snapshot RESULTS DYNAMICS • Aerospace strength driving order, revenue, & profit growth Organic orders growth 4% ◦ Total orders $18.7B, services +4%org, equipment +4%org; with strength in Aerospace +26%org Organic revenue growth* 5% ◦ Adjusted revenues* $17.9B ... services +15%org*; total Aeros
Slide 4: Taking action – GE Aerospace & GE HealthCare
Taking action – GE Aerospace & GE HealthCare AEROSPACE - OE AEROSPACE - SERVICES HEALTHCARE Material issues Work stops Mfg. lines at shortage risk • Improvement versus 1Q • Improvement throughout 2Q • Lowest since March ‘21 • Largest constraints: structural • Constraints: repairs, castings, • Constr
Slide 5: Taking action – GE Vernova
Taking action – GE Vernova GE’s portfolio of energy businesses POWER PLAYBOOK RENEWABLE ENERGY FOCUS Market • Conservatively assumed & sized Gas • Developing strategy which assumes ~2,000 expectation business for ~25-30 GW global market GE Onshore turbines/year • Refocusing on select geographies • D
Slide 6: Innovation and growth highlights
Innovation and growth highlights GE VERNOVA AEROSPACE HEALTHCARE GE's portfolio of energy businesses Aerospace announced 200 CFM-International LEAP- HealthCare launched Voluson Expert 22, with artificial Power secured an order for 9HA combined cycle 1B engines were selected by Delta Air Lines to pow
Slide 7: Earnings performance
Earnings performance ($ in billions – except EPS) 2Q'22 y/y y/y YTD (org.) EPS WALK 2Q'22 Adjusted revenues* 17.9 2% 5% 34.2 GAAP Continuing EPS $(0.59) Less: Insurance 0.12 Adjusted profit* 1.7 81% 79% 2.6 Less: Non-op pension & other benefits 0.10 Adjusted profit margin* 9.3% 400bps 380bps 7.6% Le
Slide 8: Free cash flow* performance
Free cash flow* performance ($ in billions) 2Q'22 y/y YTD 2Q'22 DYNAMICS Net earnings (loss)-a) (0.6) 0.0 (1.3) • FCF* driven by positive earnings (excluding MTM) Depreciation & amortization 0.7 (0.1) 2.2 • ~Flat y/y ex. discontinued factoring … earnings improvement Operating working capital (0.2) (
Slide 9: 2Q'22 results: Aerospace
2Q'22 results: Aerospace ($ in billions) QUARTERLY RESULTS DYNAMICS • Orders: $6.9B, +26%org, services +27%org & equipment +25%org driven by commercial recovery • Revenue: $6.1B, +27%org* led by services +47%org* with Commercial strength +68%org*; lower output in Commercial Engines due to supply cha
Slide 10: 2Q'22 results: HealthCare
2Q'22 results: HealthCare ($ in billions) QUARTERLY RESULTS DYNAMICS • Orders**: $4.8B, +1%org; driven by 5%org services growth, partially offset by (1)%org equipment growth (prior year total orders +11%org comp, China/COVID) • Revenue**: $4.5B, +4%org*; driven by backlog execution despite supply ch
Slide 11: 2Q'22 results: Renewable Energy
2Q'22 results: Renewable Energy will be part of GE Vernova, GE's portfolio of energy businesses ($ in billions) QUARTERLY RESULTS DYNAMICS • Orders: $3.1B, (3)%org; equipment +19%org with Grid & Hydro offsetting Onshore; services (44)%org from lower Repower upgrades • Revenue: $3.1B, (20)%org*; equi
Slide 12: 2Q'22 results: Power
2Q'22 results: Power will be part of GE Vernova, GE's portfolio of energy businesses ($ in billions) QUARTERLY RESULTS DYNAMICS • Orders: $4.0B, (13)%org due to uneven equipment (31)%org with HDGT & Aero down … services (4)%org driven by CSA outage cycle in Gas Services • Revenue: $4.2B, +4%org* due
Slide 13: Wrap-up
Wrap-up CREATING VALUE TODAY & TOMORROW Strong quarter with order, revenue & profit growth, positive cash; pressures continue Taking action to improve delivery, price, cost & cash On track to launch three independent, investment-grade, industry-leading companies Aerospace: The T901 will re-engine th
Slide 14: Q&A
Q&A 14
Slide 15: Appendix
Appendix 16 Orders $ 17 Orders units 18 Revenues $ 15
Slide 16: Orders - supplemental information
Orders - supplemental information ($ in billions) EQUIPMENT ORDERS SERVICE ORDERS TOTAL ORDERS 2Q'22 y/y 2Q'22 y/y 2Q'22 y/y 2Q'22 y/y 2Q'22 y/y 2Q'22 y/y (org.) YTD (org.) (org.) YTD (org.) (org.) YTD (org.) Aerospace $2.4 25% $4.9 25% $4.5 27% $9.2 31% $6.9 26% $14.1 29% HealthCare $2.7 (1)% $5.4
Slide 17: Orders - supplemental information, units
Orders - supplemental information, units (in units) 2Q'22 2Q'21 2Q'22 YTD 2Q'21 YTD Aerospace Commercial Engines 569 555 1,122 853 LEAP Engines-a) 393 438 835 579 Military Engines 14 98 33 279 Renewable Energy Wind Turbines-b) 261 398 564 1,126 Wind Turbine Gigawatts-b),-c) 0.9 1.5 2.0 3.7 Repower u
Slide 18: Revenues - supplemental information
Revenues - supplemental information ($ in billions) EQUIPMENT REVENUES SERVICE REVENUES TOTAL REVENUES 2Q'22 y/y 2Q'22 y/y 2Q'22 y/y 2Q'22 y/y 2Q'22 y/y 2Q'22 y/y (org.)* YTD (org.)* (org.)* YTD (org.)* (org.)* YTD (org.)* Aerospace $1.8 (6)% $3.4 (8)% $4.4 47% $8.3 36% $6.1 27% $11.7 20% HealthCare
Slide 19: Non-GAAP reconciliations
Non-GAAP reconciliations 20 Equipment and services organic revenues by segment 21 Organic revenues by sub segment 22 Free cash flows (FCF) (including and excluding discontinued factoring) 23 Adjusted tax rate 19
Slide 20: Equipment and services organic revenues by segment
Equipment and services organic revenues by segment EQUIPMENT AND SERVICES ORGANIC REVENUES (NON-GAAP) EQUIPMENT SERVICES (Dollars in millions) 2Q'22 2Q'21 V% 2Q'22 YTD 2Q'21 YTD V% 2Q'22 2Q'21 V% 2Q'22 YTD 2Q'21 YTD V% Aerospace revenues (GAAP) $ 1,757 $ 1,865 (6)% $ 3,411 $ 3,712 (8)% $ 4,370 $ 2,9
Slide 21: Organic revenues by sub segment
Organic revenues by sub segment ORGANIC REVENUES BY SUB SEGMENT (NON-GAAP) (Dollars in millions) 2Q'22 2Q'21 V% 2Q'22 YTD 2Q'21 YTD V% Aerospace commercial services revenues (GAAP) $ 2,956 $ 1,758 68 % $ 5,676 $ 3,747 51 % Less: acquisitions — — — — Less: business dispositions — — — — Less: foreign
Slide 22: Free cash flows (FCF) (including and excluding discontinued factoring)
Free cash flows (FCF) (including and excluding discontinued factoring) FREE CASH FLOWS (FCF) (Non-GAAP) (Dollars in millions) 2Q'22 2Q'21 V$ 2Q'22 YTD 2Q'21 YTD V$ CFOA (GAAP) $ 508 $ (351) $ 859 $ (27) $ (2,991) $ 2,963 Less: Insurance CFOA 70 (16) 55 44 CFOA excluding Insurance (Non-GAAP) $ 438 $
Slide 23: Adjusted tax rate
Adjusted tax rate ADJUSTED TAX RATE (NON-GAAP) (Dollars in millions) 2Q'22 2Q'21 V% 2Q'22 YTD 2Q'21 YTD V% Earnings (loss) from continuing operations before taxes (GAAP) (244) (1,037) (770) (799) Less: Insurance earnings 175 232 402 374 Earnings (loss) from continuing operations before taxes, exclud
Slide 24: Upcoming calendar
Upcoming calendar 3Q’22 earnings October 25, 2022 4Q’22 earnings January 24, 2023 GE Investor Day March 9, 2023 24