Ge Aerospace · NYSE:GE
Ge Aerospace — Investor Day (March 2024)
107 slides from Ge Aerospace's investor day presentation, Mar 7, 2024
Slide 1: GE Aerospace 2024 Investor Day
GE Aerospace 2024 March 7, 2024 | New York City
Slide 2: Caution concerning forward-looking statements
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
Slide 3: Today's agenda
Today’s agenda 8:00AM Welcome Steve Winoker Safety moment & GE Aerospace overview Larry Culp Commercial Engines & Services Russell Stokes, Farah Borges & ▪ Assembly, Test & Services Mohamed Ali ▪ Technology & Innovation 9:20AM Q&A Team 9:40AM Break Defense & Propulsion Technologies Amy Gowder & Ricc
Slide 4: Site safety and exit routes
Site safety Exit routes Today at Center415 38th street In event of an emergency: ▪ Please exit the building through same doors you entered ▪ Follow routes to emergency rally point 5th Avenue If you are unsure about anything, please ask Stairs 2024 GE Aerospace Investor Day 4
Slide 5: Safety moment & GE Aerospace overview
Safety moment & GE Aerospace overview Larry Culp I CEO, GE Aerospace 2024 GE Aerospace Investor Day 5
Slide 6: Our purpose: invent the future of flight
OUR PURPOSE We invent the future of flight, lift people up and bring them home safely ~3B ~900K 3 out of 4 Passengers flew People flying at any Commercial flights with GE technology-a) given time on GE-a) powered powered by under wing in 2023 aircraft our engines-a) (a – Includes equipment made by C
Slide 7: Video: culture of safety
Video: culture of safety 2024 GE Aerospace Investor Day 7
Slide 8: Bring them home safely
“Bring them home safely” GE Aerospace’s Safety Management System is a systematic approach to managing employee & product safety – from design to manufacturing & services 1 Policy: senior management commitment to improve safety 2 Promotion: create a positive safety culture in workforce 3 Risk managem
Slide 9: GE Aerospace: key messages
GE Aerospace: key messages Global aerospace leader in attractive propulsion, services & systems sectors Industry’s largest & growing commercial propulsion fleet, with unrivaled technology & customer service Rotorcraft & combat engine provider of choice, innovating next generation capabilities 2024 G
Slide 10: Global leader in attractive, growing commercial & defense sectors
Global leader in attractive, growing commercial & defense sectors Commercial Engines & Services Defense & Propulsion Technologies $23.9B revenue-a) $9.0B revenue-a)-d) $32B Largest & youngest fleet 2023 adjusted revenue*-c) Large & diverse portfolio ~44,000 engines-b) ~26,000 engines Most complete v
Slide 11: Sustained momentum & growth across commercial & defense sectors
Sustained momentum & growth across commercial & defense sectors Commercial air travel demand Global defense spending budget Revenue passenger kilometers (RPK) MSD-HSD% 5-year CAGR 11.3B +LSD% 5-year CAGR $2.1T 8.0B $1.8T U.S. Department of Defense-a) International-b) 2023 2028F 2023 2028F Source: IA
Slide 12: Our strategic priorities, with safety & quality first
GE Aerospace: our strategic priorities, with safety & quality first T O D AY TOMORROW FUTURE Service & Delivering Inventing next-gen readiness the ramp flight technology Defining flight with unrivaled technology & customer service 2024 GE Aerospace Investor Day 12
Slide 13: Introducing GE Aerospace's proprietary lean operating model
Introducing GE Aerospace’s proprietary lean operating model A systematic approach to running our business to deliver exceptional value as measured through the eyes of our customers Accelerating our lean progress to ensure focused execution as a public company 2024 GE Aerospace Investor Day 13
Slide 14: Video: overview
Video: overview 2024 GE Aerospace Investor Day 14
Slide 15: Our roadmap: one team, one strategy, one operating model
Our roadmap: one team, one strategy, one operating model, one culture T O D AY Service & readiness Operational Financial results performance TOMORROW Delivering the ramp Hoshin FUTURE Kanri Inventing next-gen flight technology 2024 GE Aerospace Investor Day 15
Slide 16: Lean operating model fundamentals
fundamentals Enterprise Individual Standard work Continuous improvement (kaizen) Daily & visual management Respect for people Value stream management Customer-driven Operating cadences Action planning (manage vs. report) Strategy ➔ Hoshin Kanri Problem solving How GE Aerospace comes together to impl
Slide 17: In action: supply chain
in action: supply chain T O D AY: Model lines in Terre Haute ▪ Leveraged value stream management to launch & scale model lines ▪ For the LEAP-1A & LEAP-1B turbine center frame: 100% ~50% ~50% on-time delivery labor productivity capital investment T O M O R R O W : Supplier ramp readiness ▪ Identifie
Slide 18: A century of learning & sustained R&D
A century of learning & sustained R&D … Platforms F O U N D AT I O N A L D I F F E R E N T I AT E D T E C H N O L O G I E S 1980s → 2050s Narrowbody CFM56 >1B flight hours CF6 Most produced Architecture & Aerodynamics Material widebody engine system integration science Widebody GE90 1st for composit
Slide 19: Decades of product leadership & competitive advantages
… drive decades of product leadership & sustained competitive advantages Platforms F O U N D AT I O N A L N E X T G E N E R AT I O N FUTURE 1980s → 2050s 2010s → 2070s 2030s → 2090+ Revolutionary CFM56 LEAP Narrowbody 15% better fuel Innovation for >1B flight hours efficiency vs. CFM56 Sustainable E
Slide 20: 2024 guidance & 2025 outlook
2024 guidance & 2025 outlook ($ billions) Adjusted revenue* Operating profit* Free cash flow* LDD LDD+ $32.0-a) $7.1-7.5 >100% $6.0-6.5 $5.6-a) conversion-b) >$5 $4.7-a) 2023 2024E 2025F 2023 2024E 2025F 2023 2024E 2025F Sustainable revenue, profit & FCF* growth, creating value now ... *Non-GAAP Fin
Slide 21: 2028 outlook
2028 outlook Adjusted revenue* growth Operating profit* Free cash flow* HSD ~$10B ~100% CAGR-a) (LDD CAGR-a)) conversion-b) ... & higher profit growth & FCF* generation through 2028 *Non-GAAP Financial Measure (a – ’25-’28 CAGR (b – FCF* conversion: FCF* / adjusted net income* 2024 GE Aerospace Inve
Slide 22: Capital allocation: creating value & maximizing returns
Capital allocation: creating value & maximizing returns Invest in growth & Return cash to Focused innovation shareholders M&A R&D & capex to support Large majority of available Disciplined approach … customers & provide industry funds to shareholders through strategic, operational & financial leadin
Slide 23: GE Aerospace is ready to soar
GE Aerospace is ready to soar Customer Most Highest preferred extensive operational Breakthrough platforms installed base reliability innovation Best products & services Unrivaled customer Continuously Leading engineering GE Aerospace’s underwing, balanced service & flight improving with the talent
Slide 24: Commercial Engines & Services (CES)
Commercial Engines & Services (CES) Russell Stokes | President & CEO, CES Farah Borges | VP, Assembly, Test, Maintenance, Repair & Overhaul, CES Mohamed Ali | VP, Engineering, GE Aerospace 2024 GE Aerospace Investor Day 24
Slide 25: CES: industry's largest & growing commercial propulsion fleet
CES: industry’s largest & growing commercial propulsion fleet CES 2023 revenue: $23.9B-b) ’23-’28 revenue CAGR ~35% low-double digits Widebody Largest & youngest fleet ~50% ~44,000 engines-a) Narrowbody Platform revenue Most complete value prop ... safety, efficiency, reliability ~70% services reven
Slide 26: Positive commercial aerospace environment
Positive commercial aerospace environment Strong demand for air travel … … with positive customer dynamics GE/CFM Passenger Freight Airlines departures ▪ Record revenues & improving margins 19% 18% ▪ Strong demand & robust orderbooks MSD HSD ▪ Continued APAC & China recoveries MSD HSD MSD MSD 2023 2
Slide 27: CES: our strategic priorities
CES: our strategic priorities T O D AY TOMORROW FUTURE Keep installed Grow & optimize Launch & scale fleet flying emerging fleet next-gen technology ▪ Ensure world-class safety & ▪ Deliver production ramp to ▪ Achieve ground & flight test reliability support demand demos for CFM RISE ▪ Deploy materi
Slide 28: Commercial program flywheel
Commercial program flywheel (illustrative varies by program) Services: mature New engine Shop visit 3 = ~25% 4 1 development & sale of lifecycle revenue-a) ~25% of lifecycle revenue-a) Mostly T&M-b) or external Initial investment cost, install ~3.5x engines & spare engines services revenue for every
Slide 29: Extensive portfolio of narrowbody & widebody offerings
Extensive portfolio of narrowbody & widebody offerings (illustrative) Engine program lifecycle revenue-a) Boeing 737NG & Airbus A320CEO CFM56 Narrowbody Regional & Aircraft CRJ200 CF34 Bombardier CRJ 700/900 Embraer E170/190 Boeing 737 Classic & COMAC ARJ21 CFM56 Boeing 737Max, CF34 Parts & services
Slide 30: Narrowbody platforms: well-positioned with leading technology
Narrowbody platforms: well-positioned with leading technology Recent commercial wins-a) Leadership on narrowbody platforms CFM56: industry’s most utilized engine Other 154 737MAX 140 A320 / 70 A321 / 1.2B ~19K ~45% 190 737MAX Flight Engines Fleet has not yet hours in service had a shop visit 56 A320
Slide 31: Narrowbody platforms: CFM56 fleet continues to outperform
Narrowbody platforms: CFM56 fleet continues to outperform expectations Departures-a) Shop visit forecast-a),-b) 15 2500 12 2000 9 1500 Millions 6 1000 3 500 0 0 2023 2025F 2028F 2023 2025F 2028F '22 Forecast '23 Forecast ▪ ‘23 above expectations … demand remains strong ▪ ~200 shop visit increase thr
Slide 32: Narrowbody platforms: LEAP becoming a big profit driver
Narrowbody platforms: LEAP becoming a big profit driver Installed base growth Services revenue growth Profit growth +MSD +LDD CAGR CAGR ~25,500 LEAP LEAP ~$8B LEAP CFM56 CFM56 CFM56 2023 2025F 2028F 2023 2025F 2028F 2023 2025F 2028F Strong services growth as fleet transitions from CFM56 to LEAP 2024
Slide 33: Delivering on LEAP ramps to meet growing demand
Narrowbody platforms: delivering on LEAP ramps to meet growing demand LEAP engine production ramp LEAP shop visit ramp External & CBSA-b) shop visits ~20-25% ~1,700 1,570 1,136 GE/Safran shop visits-a) 845 815 2023 2024E 2025F 2026F 2024E 2025F 2026F 2027F 2028F ▪ Higher win rate in ’23 ▪ Fleet size
Slide 34: Growing LEAP fleet with focus on reliability & durability
Narrowbody platforms: growing LEAP fleet with focus on reliability & durability Reliability a differentiator for customers HPT blade durability expectations TOW indexed to technical requirement (cycles) LEAP-1A LEAP-1B Current CFM56 >1,700 >29M >1,400 >16M aircraft hours aircraft hours >90 >13M >70
Slide 35: Video: LATAM Airlines
Video: LATAM Airlines 2024 GE Aerospace Investor Day 35
Slide 36: Widebody platforms: large & growing fleet in service
Widebody platforms: large & growing fleet in service Recent commercial wins-a) Leadership on widebody platforms ~7,200 >80% ~50% GE engines CF6 powering GE90 fleet 202 GE9X for 777X 10 GEnx for 787s powering world’s 767 & 747 <10 years old widebody platforms freighters 90 GEnx for 787s 16 GE9X for 7
Slide 37: Widebody platforms: expect growth to continue
Widebody platforms: expect growth to continue Installed base growth Services revenue growth +MSD +LSD CAGR CAGR GE9X GE9X ~7,200 ~$7B GEnx GEnx GP GP GE90 GE90 CF6 CF6 2023 2025F 2028F 2023 2025F 2028F Maintain strong services revenue base from mature products as GEnx & GE9X ramp 2024 GE Aerospace I
Slide 38: Widebody platforms: GEnx poised for significant growth
Widebody platforms: GEnx poised for significant growth GEnx engine installed base GEnx services revenue growth +MSD +LDD CAGR CAGR 2023 2024E 2025F 2026F 2027F 2028F 2023 2025F 2028F ▪ 99% win rate of firm 787 orders in ’23, >400 engines ▪ Shop visit content increasing ▪ 4X ramp in output from ‘23 t
Slide 39: Widebody platforms: GE9X focused on entry into service & ramp
Widebody platforms: GE9X focused on entry into service & ramp Wins & growth Engine cost Services revenue >900 engines to deliver EIS 50th 250th by 2030 ‘31-’35 2035+ ▪ Ongoing campaign volume ▪ Strong pipeline of cost-out ▪ Services growth driven by expected through end of activities underway to ben
Slide 40: Widebody platforms: long life remains on in-service platforms
Widebody platforms: long life remains on in-service platforms CF6 shop visit forecast (EIS 1971) GE90 shop visit forecast (EIS 1995) 2023 2024E 2025F 2026F 2027F 2028F 2023 2024E 2025F 2026F 2027F 2028F ▪ Continuing to deliver new engines ▪ Still in production... delivered 3,000th engine ▪ Long tail
Slide 41: CFM RISE program: enabling emissions reduction goals
CFM RISE program: enabling airlines to meet emissions reduction goals Revolutionary Innovation for Sustainable Engines Higher Sustainable Passenger Airline efficiency fuel experience operations Open fan enables 100% sustainable Same or better cabin Same speed & altitude efficiency goals by aviation
Slide 42: Delivering safety, quality, delivery & cost in 2023
delivering safety, quality, delivery & cost in 2023 as the foundation Safety Quality Delivery Cost >10% 15% >25% >75% reduction of improvement in new engines growth services net injury & illness rate manufactured quality productivity growth >10% internal shop visits growth Driving culture of continu
Slide 43: Video: in action (Rutland, Vermont)
Video: in action (Rutland, Vermont) 2024 GE Aerospace Investor Day 43
Slide 44: In action: improving lead times in Assembly
in action: improving lead times in Assembly CF34-10 model line lead time Improved results over the last year Days Model line 70 implemented Goal: 10 days 60 engine assembly 50 lead time 40 30 0 65% 20 injuries in customer 10 disruptions 0 Executed kaizen roadmap inclusive of: ▪ Standard work develop
Slide 45: MRO transformation through lean
MRO transformation through Overhaul turnaround time (TAT) Improvement actions Days Narrowbody Widebody ▪ Scale lean model lines across MRO network 2023 >30% ▪ Transform material availability (new material & repair) ~95 ~130 targeted ▪ Leverage lean to maximize existing capacity & drive reduction Tar
Slide 46: Technology & innovation: our strategic priorities
Technology & innovation: our strategic priorities T O D AY TOMORROW FUTURE Keep the fleet Support ramp & improve Invent next-gen flying safely LEAP & GE9X durability technology ▪ Safety philosophy: ▪ Develop & field durable ▪ Advance CFM RISE, proactively seek out designs to meet ensuring world-clas
Slide 47: Bring them home safely: enterprise framework
"Bring them home safely” ... enterprise framework REACTIVE PROACTIVE PREDICTIVE Safety Project Management Team Safety & Quality Management Systems Next-gen enhanced inspection No decisions made alone Open reporting & increased awareness Innovation in predictive safety measures Be a part of the entir
Slide 48: Rotor safety & integrity
Rotor safety & integrity … anticipate & catch material anomalies Modeling & New make enhanced MRO-enhanced Partnership for design phase inspection inspection safety & quality Consider material properties to Leveraging technology to Opportunistic application of Driving culture of enhance robustness w
Slide 49: LEAP engine durability improvements
LEAP engine durability improvements ... execution on track Durability roadmap achievements Updated HPT blade ... Shroud Released into production Status 2x durability improvement 2018: improved coating >50% of fleet retrofitted-to-date Accessory radial drive shaft 2019: bearing update >95% of fleet r
Slide 50: GE9X builds on learnings from fielded fleet
GE9X engine builds on learnings from fielded fleet driving incremental improvement with each engine generation Removal rate per 1,000 hours First 5 years of service High bypass engines 0.5 GE90 GE9X 0.45 CF6-6 1st blade +3 (2) 0.4 improvement X x 0.35 Years 1st endurance (1) (4) 0.3 Post-EIS test x
Slide 51: CFM RISE technology maturation plan
CFM RISE technology maturation plan required to achieve 20% fuel burn reduction Core & advanced systems technology Fan technology 3 1 High-pressure turbine (HPT) blade innovation •3 Engine-airframe integration 2 Hybrid electric ground & flight test demos •4 Open Fan aerodynamics 1 2 Achieves fuel re
Slide 52: CFM RISE program: real tests, real hardware
CFM RISE program … real tests, real hardware, real progress High-pressure turbine Installation ▪ First full engine successfully ▪ Deploying supercomputing ran in 2023 with next- capability combined with state- generation turbine blade of-art system testing with Airbus 1 technology 3 ▪ Demonstrating
Slide 53: CES: 2024 guidance
CES: 2024 guidance 2023 2024E 2024 dynamics 2025 dynamics ▪ Mid-high-teens growth, including: ‒ Engines: High-teens growth Revenue $23.9B-a) +Mid-high-teens ‒ Services: Mid-teens growth ▪ LEAP deliveries +20-25% ▪ Mix pressure as growth in OE (LEAP & GE9X) outpaces departures/services growth Operati
Slide 54: CES: revenue growth
CES: revenue growth Revenue growth Key2025 drivers dynamics ▪ OE continues to grow faster than services as +HSD-b) departures normalize +LDD-mid +Mid-high teens teens ▪ OE growth driven by LEAP, GEnx & GE9X $23.9B-a) ▪ Growing installed base continues to fuel services ▪ LEAP program revenue exceeds
Slide 55: CES summary
Industry’s largest engine portfolio, powering the world’s most successful & innovative aircraft platforms Capitalizing on secular tailwinds to grow well above GDP for foreseeable future Reliable product portfolio supports global customer base & free cash flow* generation Leveraging FLIGHT DECK to de
Slide 56: Q&A
Q&A 2024 GE Aerospace Investor Day 56
Slide 57: Break
Break 2024 GE Aerospace Investor Day 57
Slide 58: Defense & Propulsion Technologies (D&PT)
Defense & Propulsion Technologies (D&PT) Amy Gowder | President & CEO, D&S Riccardo Procacci | President & CEO, P&AT 2024 GE Aerospace Investor Day 58
Slide 59: D&PT: leading provider of defense engines & critical aircraft systems
D&PT: leading provider of defense engines & critical aircraft systems D&PT 2023 revenue: $9.0B-a) ~65% ~35% Defense & Systems Propulsion & Additive (D&S) Business Technologies (P&AT) ’23-’28 revenue CAGR revenue mid to high-single digits Diverse & growing portfolio ~26,000 engines Rotorcraft & comba
Slide 60: Defense budget environment
Defense budget environment U.S. Department of Defense budget-a) International defense budget-b) Anticipate +LSD CAGR in +MSD +3% FY25 President’s Budget CAGR in FY24 817 841 2023 2024E 2025F 2026F 2027F 2028F 2023 2024E 2025F 2026F 2027F 2028F • Robust growth leveling off to ~LSD over Future Years •
Slide 61: D&S: our strategic priorities
D&S: our strategic priorities T O D AY TOMORROW FUTURE Service & grow Deliver & ramp Develop next-gen tech existing fleet new products for advanced programs ▪ FLIGHT DECK improvements ▪ Execute NPIs in rotorcraft & ▪ Lead in adaptive cycle engine in components & assembly Modular Open System technolo
Slide 62: Delivering improved operational performance
Delivering improved operational performance through Focused on safety & quality Delivering for our customers ▪ Robust safety systems for employees & products ▪ Daily management systems in place ▪ Foster a culture of open communication ▪ Deployed a “plan for every part” approach ▪ Continuous improvem
Slide 63: Video: in action (Lynn, Massachusetts)
Video: in action (Lynn, Massachusetts) 2024 GE Aerospace Investor Day 63
Slide 64: Defense: improving performance & building advanced programs
Defense: improving performance & building advanced programs for future growth Defense overview Managing through a volatile period ▪ Inflationary pressure in parts & raw materials ~40% ~25% ▪ Defense contract mix: ~50% fixed price, ~40% commercial, Combat Rotorcraft ~10% cost plus ▪ Industry capacity
Slide 65: Powering a wide range of defense aircraft globally
Powering a wide range of defense aircraft globally (illustrative) Engine program lifecycle revenue-a) Next Gen Improved Turbine Air Force T-7A USMC CH-53K P-8/E-7 Air Force F-15EX F-16 Apache/Black Hawk F/A-18 Engine Program F404 T408 CFM56 F110 F110 T700 F404/F414 T901 U.S. platforms Sustainment Ne
Slide 66: Combat: proven engines across customer thrust requirements
Combat: proven engines across customer thrust requirements Demand drivers: ▪ U.S. trainer recapitalization ▪ Indigenous trainers & fighters F110 (pictured above), F404, F414 2023 '24E-'28F actuals outlook U.S. 400-500 units T-7A F-15 F-16 106 units International 500-600 units KF-21 T-50 TF-X Tejas 2
Slide 67: Rotorcraft: reliable & durable engines
Rotorcraft: reliable & durable engines in most demanding operating environments Demand drivers: ▪ U.S. Army modernization ▪ Int’l fleet recapitalization T408 (pictured above), T700, T901 2023 '24E-'28F actuals outlook U.S. 1,200-1,300 units AH-64 CH-53K H-60 402 units International 1,200-1,300 units
Slide 68: Mobility & Marine: commercial derivatives
Mobility & Marine: commercial derivatives driving performance & dependability for Defense engine applications Demand drivers: ▪ Special mission requirements ▪ Surface navy fleet growth F108 (pictured above) & LM2500 2023 '24E-'28F actuals outlook 125-175 U.S. DDG units P-8 E-7 Destroyers 48 units In
Slide 69: Edison Works: technology innovation
Edison Works: technology innovation Developing building blocks for advanced products Edison Works ▪ Well-positioned on critical advanced combat campaigns Revenue outlook (e.g., NGAD / NGAP) >3x ▪ Advanced materials: enhancing platform capability ▪ Hypersonics: demonstrating groundbreaking tech that
Slide 70: D&S beyond propulsion
D&S beyond propulsion Electrical Power Silicon Carbide technology ▪ Diverse portfolio of power generation, conversion, distribution & control ▪ World-class system integration facility EPISCenter (Dayton, Ohio) Growth & profitability drivers Revenue % in '23 ▪ Defense: leader in high voltage DC platf
Slide 71: Rotorcraft & combat engine provider of choice
Rotorcraft & combat engine provider of choice, innovating next generation capabilities Focused on driving a step change in performance today Growing in both core & next-generation products tomorrow Differentiated technology & products for future of defense 2024 GE Aerospace Investor Day 71
Slide 72: Propulsion & Additive Technologies (P&AT)
Propulsion & Additive Technologies (P&AT) Riccardo Procacci | President & CEO, P&AT 2024 GE Aerospace Investor Day 72
Slide 73: P&AT: creating value for GE Aerospace & external customers
P&AT: creating value for GE Aerospace & external customers across the industry P&AT overview Technology leadership & European presence ▪ Four recognized independent business units with HQs in Europe & North America ~60% ▪ Avio Aero: leader for gearboxes & low-pressure turbines, small turboprop engin
Slide 74: P&AT: our strategic priorities
P&AT: our strategic priorities T O D AY TOMORROW FUTURE Support Ramp new Support existing fleet products & tech sustainable flight ▪ Continue driving industry- ▪ Catalyst turboprop setting new ▪ Developing technology across leading safety standards standard for General Aviation & the full spectrum o
Slide 75: Avio Aero: a major player in Europe
Avio Aero: a major player in Europe Avio Aero overview European defense native technology player ▪ GCAP-a): 6th generation fighter, backbone of UK, Italy, Japan air forces … engine program value >€40B ~55% ▪ EU funded defense programs for technological autonomy External (EDF) customers ~$1.8B ▪ Avio
Slide 76: Avio Aero: reliably deliver today to support growth
Avio Aero: reliably deliver today to support growth across business Commercial revenue Defense revenue ~1.9x ~1.6x 2023 2024E 2025F 2028F 2023 2024E 2025F 2028F ▪ Growth in commercial platforms across: ▪ Avio Aero serves diversified customer needs: ‒ GE: LEAP, GEnx, GE9X ‒ GE: T700, T901 ‒ External
Slide 77: Avio Aero: Catalyst engine
Avio Aero: Catalyst defining next level of efficiency & performance Sole clean sheet design in 40 years ▪ ITAR/EAR free design and technology, easier to globally export for commercial and military applications ▪ Selected for Beechcraft Denali and ADS Eurodrone, >800 engines already signed up The Cat
Slide 78: GE Additive: enabling new design opportunities
GE Additive: enabling new design opportunities for the industry Differentiators ▪ Components with improved fuel efficiency, lower emission & extended range ▪ On CFM RISE, LEAP, GE9X, T901, XA100 & Eurodrone ▪ EBM point-melt technology & multi-laser M Line ▪ Specialty aviation-grade powder with growi
Slide 79: P&AT: delivering & investing now for customers' needs tomorrow
P&AT: delivering & investing now for customers’ needs tomorrow Reliably deliver today to support growth across business Distinctive technologies for tomorrow customer’s success Defining & supporting the future of sustainable flight 2024 GE Aerospace Investor Day 79
Slide 80: D&PT: 2024 guidance
D&PT: 2024 guidance 2023 2024E 2024 dynamics 2025 dynamics ▪ Mid-to-high-single digit revenue growth Revenue $9.0B-a) +MSD-HSD ‒ Increasing Defense engine deliveries ▪ Volume & price, net of inflation ... more Operating profit $0.9B-a) $1.0B-$1.3B than offsetting engine mix & investments ▪ Continued
Slide 81: D&PT: revenue growth
D&PT: revenue growth Revenue growth Key2025 drivers dynamics ▪ HSD CAGR for defense engine unit deliveries +MSD-b) through ’28F +MSD-HSD − U.S. & Int’l combat & rotorcraft platforms +MSD-HSD $9.0B-a) ▪ Increasing revenue from Edison Works − Advanced programs & next-gen technologies ▪ Propulsion & Ad
Slide 82: Financial outlook
Financial outlook Rahul Ghai | CFO, GE Aerospace 2024 GE Aerospace Investor Day 82
Slide 83: Consistent long-term growth through market cycles
GE Aerospace delivering consistent long-term growth through market cycles ($ in billions) Adjusted revenue* Operating profit* Installed base-a) growth 3x 31.8 3x >60% 6.1 70K 51K 17.6 3.3 42K 10.8 2.0 2000 2010 2023 2000 2010 2023 2000 2010 2023 *Non-GAAP Financial Measure (a – Number of commercial
Slide 84: 2023 standalone adjustments
2023 standalone adjustments ($ in billions) Operating profit* Free cash flow* 6.1 EHS 5.6 5.7 (0.5) (0.1) 0.2 4.7 (1.1) 2023 GE GE Corporate Separation 2023 GE 2023 GE GE Corporate Separation 2023 GE Aerospace reported adjustments -b) Aerospace Aerospace reported adjustments -b) Aerospace reported r
Slide 85: GE Aerospace future business reporting
GE Aerospace future business reporting ($ in billions) Adjusted revenue* Operating profit* Mid-high teens 23.9 6.0-6.3 COMMERCIAL ENGINES & 5.6 SERVICES (CES) 2023 2024E 2023 2024E 9.0 MSD-HSD DEFENSE & PROPULSION 1.0-1.3 0.9 TECHNOLOGIES (D&PT) 2023 2024E 2023 2024E C O R P O R AT E & (1.0) -a) ~(1
Slide 86: 2024 guidance: significant profit growth
2024 guidance: on track to deliver significant profit growth ($ in billions) Operating profit* 2024 dynamics ▪ LDD+ revenue growth $6.0-$6.5 ‒ Services: mid-teens revenue growth; internal SV up low to mid-teens $5.6 ‒ OE: high-teens revenue growth ... LEAP units +20-25% … spare engine mix expected t
Slide 87: 2024 guidance: FCF conversion
2024 guidance: FCF* conversion-a) >100% ($ in billions) Free cash flow* bridge 2024 dynamics ▪ Earnings improvement driving FCF* growth >$5 ▪ Working capital improvement of $0.6B … $4.7 in-line with ‘23 ▪ AD&A $(0.3)B; aligns to airframer delivery schedules ▪ Capex growing with revenue to support gr
Slide 88: 2025 outlook: ~$1B profit growth
2025 outlook: ~$1B profit growth & >100% FCF* conversion-a) ($ in billions) Operating profit* 2025 dynamics 2025 dynamics ~$1B ... ▪ LDD revenue growth: Mid-teens % ‒ CES: LDD-mid-teens with OE outpacing Services profit growth $7.1-$7.5 ‒ D&PT: MSD-HSD driven by Defense units ▪ Mid-teens profit grow
Slide 89: Pricing to cover investments, risks & inflationary pressures
Pricing to cover investments, risks & inflationary pressures Price impact to offset inflation Pricing trend Price LEAP GEnx Inflation 2022 2023 2024E Pre '18 '22-'23 Pre '18 '22-'23 ▪ Remain price / cost positive through ’25 ▪ Improved pricing on new engine orders & services given customer value gen
Slide 90: Simplifying processes & reducing costs
Utilizing to simplify processes & reduce costs Alt 1 Improving factory productivity Opportunities in SG&A spend SG&A % of revenue-a) ~10% 2022 2023 2024E 2025F 2023 Volume Actions 2025F ▪ Driving more effective training to improve employee ▪ Disciplined additions to support higher revenue flexibilit
Slide 91: 2028 outlook
2028 outlook Adjusted revenue* growth Operating profit* Free cash flow* HSD ~$10B ~100% CAGR-a) (LDD CAGR-a)) conversion-b) + Volume: MSD-a) + Volume / price Air traffic growth, equipment ramp, Higher revenue, LEAP growth defense budgets Working capital opportunity + Price: LSD-a) + Productivity MSD
Slide 92: LEAP: a significant contributor to profit growth & FCF
LEAP: a significant contributor to profit growth & FCF* generation Profit growth … … supporting FCF* generation CSA-a) billings growth Shop visit growth ~3x LEAP ~2x CFM56 2023 2024E 2025F 2028F 2024E 2028F 2024E 2028F ▪ LEAP contributing to profit growth in ’25 … LEAP profit ▪ Growing installed bas
Slide 93: Working capital opportunities supporting FCF growth
Working capital opportunities supporting sustainable FCF* growth Positive net contract assets flow Decreasing inventory outflow CSA-a) billings Inventory turns Net contract assets flow Inventory outflow 2023 2024E 2025F 2028F 2023 2024E 2025F 2028F ▪ 85% of billings to go from existing CSA-a) contra
Slide 94: Increasing dividend & share buy-back by more than 4x
Increasing dividend & share buy-back by more than 4x ’24 to ’26 available cash Framework Framework Invest in growth R&D-c) 6%-8% of revenue & capex ~3% of & innovation revenue … supporting growth & innovation Return ~70-75% of available funds: ▪ Initial dividend 30% of net income … FCF* Return cash
Slide 95: Attractive financial profile
Attractive financial profile with services representing ~70% of revenue & sustainable cash generation Strong revenue trajectory fueled by growing installed base & higher utilization Operating profit* ~$10B in 2028 Higher FCF* creates opportunities to return cash to shareholders Growing profit & cash
Slide 96: Q&A
Q&A 2024 GE Aerospace Investor Day 96
Slide 97: Wrap
Wrap Larry Culp I CEO, GE Aerospace 2024 GE Aerospace Investor Day 97
Slide 98: GE Aerospace is ready to soar
GE Aerospace is ready to soar Customer Most Highest preferred extensive operational Breakthrough platforms installed base reliability innovation Best products & services Unrivaled customer Continuously Leading engineering GE Aerospace’s underwing, balanced service & flight improving with the talent
Slide 99: Appendix
Appendix 2024 GE Aerospace Investor Day 99 99
Slide 100: GE Aerospace team available after today's meeting
GE Aerospace team available after today’s meeting Larry Culp Mohamed Ali Farah Borges Karin Burns Darin DiTommaso Tara DiJulio Rahul Ghai Amy Gowder Jen Griffin CEO VP, Engineering VP, Assembly, Test, Head of Marketing, VP, Engineering, Chief Corporate Affairs Senior Vice President & President & CEO
Slide 101: 2023 GE Aerospace rebaselined financial information
2023 GE Aerospace rebaselined financial information In advance of the GE Vernova separation (“the Separation”) expected on April 2, 2024, except for reported 2023 financial information presented on page 83, all key 2023 metrics presented herein have been voluntarily provided to reflect the reclassif
Slide 102: Non-GAAP reconciliations
Non-GAAP reconciliations 2024 GE Aerospace Investor Day 102
Slide 103: Adjusted revenues & Adjusted profit
Adjusted revenues & Adjusted profit ADJUSTED REVENUES (NON-GAAP) (Dollars in millions) 2023 Total revenues (GAAP) $ 67,954 Less: Insurance revenues 3,389 Adjusted revenues (Non-GAAP) $ 64,565 Less: Renewable Energy revenues 15,050 Less: Power revenues 17,731 Less: Separation adjustments (a) (175) GE
Slide 104: Adjusted Corporate costs & Adjusted SG&A
Adjusted Corporate costs & Adjusted SG&A ADJUSTED CORPORATE OPERATING PROFIT (COST) (NON-GAAP) (Dollars in millions) 2023 Gains (losses) on retained and sold ownership interests $ 5,778 Gains (losses) on other equity securities (5) Gains (losses) on purchases and sales of business interests (9) Rest
Slide 105: Free cash flows (FCF)
Free cash flows (FCF) FREE CASH FLOWS (FCF) (NON-GAAP) (Dollars in millions) 2023 CFOA (GAAP) $ 5,570 Less: Insurance CFOA 191 CFOA excluding Insurance (Non-GAAP) $ 5,378 Add: gross additions to property, plant and equipment and internal-use software (1,595) Less: separation cash expenditures (1,060
Slide 106: 2024, 2025 and 2028 operating profit and FCF (non-GAAP)
2024, 2025 AND 2028 OPERATING PROFIT (NON-GAAP) We cannot provide a reconciliation of the differences between the non-GAAP expectations and corresponding GAAP measure for GE Aerospace operating profit* in 2024, 2025 and 2028 without unreasonable effort due to the uncertainty of timing of any gains o
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