Slide 1: GE third quarter 2022 performance
GE third quarter 2022 performance Financial results & company highlights October 25, 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 degr
Slide 2: GE: building a world that works
GE: building a world that works CREATING VALUE TODAY & TOMORROW Momentum building … led by strong GE Aerospace performance Positioning GE Vernova-a) for long-term profitable growth through Renewable Energy actions & external catalysts Planned spins on track … GE HealthCare first & ready to go PLANS
Slide 3: 3Q'22 snapshot
3Q'22 snapshot RESULTS DYNAMICS Organic • Aerospace strength & HealthCare improvement fuel growth (7)% orders growth ◦ Total orders $20.0B, all segments up ex-Renewable Energy; services +17%org, equipment (25)%org Organic +7% ◦ Adj. revenues* $18.4B ... Aerospace +25%org*, HealthCare revenue growth*
Slide 4: GE Vernova – path to profitability
GE Vernova – path to profitability GE’s portfolio of energy businesses TAKING ACTION: ONSHORE WIND GE VERNOVA EXTERNAL CATALYSTS U.S. Onshore Average Installations (GW)-b) • Focused on improving fleet availability, better balancing ~15 innovation & industrialization ~9 ◦ Pivot to standard, simplifie
Slide 5: Earnings performance
Earnings performance ($ in billions – except EPS) 3Q'22 y/y y/y YTD (org.) EPS WALK Adjusted revenues* 18.4 4% 7% 52.6 3Q'22 GAAP Continuing EPS $(0.14) Adjusted profit* 1.1 (19)% (20)% 3.7 Less: Insurance (0.23) Less: Non-op pension & other benefits 0.09 Adjusted profit margin* 5.8% (160)bps (190)b
Slide 6: Free cash flow* performance
Free cash flow* performance ($ in billions) 3Q'22 y/y YTD 3Q'22 DYNAMICS Net earnings (loss)-a) (0.1) (0.7) (1.4) • Positive contribution from adjusted earnings Depreciation & amortization 0.6 (0.1) 2.8 • Minimal working capital use while supporting growth: Operating working capital (0.2) (0.0) (1.3
Slide 7: 3Q'22 results: GE Aerospace
3Q'22 results: GE Aerospace ($ in billions) QUARTERLY RESULTS DYNAMICS • Orders: $7.3B, +6%org, services +28%org driven by commercial recovery & equipment (26)%org driven by large Military orders in 3Q'21 • Revenue: $6.7B, +25%org* led by services +33%org* with Commercial strength +47%org*; equipmen
Slide 8: 3Q'22 results: Renewable Energy
3Q'22 results: Renewable Energy will be part of GE Vernova, GE's portfolio of energy businesses ($ in billions) QUARTERLY RESULTS DYNAMICS • Orders: $3.7B, (41)%org; equipment (46)%org primarily from large Offshore orders in 3Q'21; services +4%org • Revenue: $3.6B, (10)%org*; equipment (17)%org*, lo
Slide 9: 3Q'22 results: Power
3Q'22 results: Power will be part of GE Vernova, GE's portfolio of energy businesses ($ in billions) QUARTERLY RESULTS DYNAMICS • Orders: $4.2B, +20%org, equipment +57%org with higher HA & Aeroderivative units … services +7%org, all businesses up • Revenue: $3.5B, (5)%org*, equipment down (25)%org*
Slide 10: GE HealthCare ready to go … targeted for 1st week of Jan '23
GE HealthCare ready to go … targeted for 1st week of Jan '23 CLEAR STRATEGY FOR VALUE CREATION RECENT SPIN PROGRESS Global leader in precision health Announced Board of Directors for future independent company Outstanding portfolio of innovative products & solutions Publicly filed Form 10 Accelerati
Slide 11: 3Q'22 results: GE HealthCare
3Q'22 results: GE HealthCare ($ in billions) QUARTERLY RESULTS DYNAMICS • Orders-a): $5.0B, +4%org; driven by +11%org services growth, partially offset by (2)%org equipment (positive growth excluding reclassification-a); prior year total orders +19%org comp) • Revenue-a): $4.6B, +10%org*; driven by
Slide 12: Wrap-up
Wrap-up CREATING VALUE TODAY & TOMORROW Momentum building ... led by strong GE Aerospace performance Positioning GE Vernova for long-term profitable growth through Renewable Energy actions & external catalysts Planned spins on track … GE HealthCare first & ready to go Future of Flight Aerospace: Alo
Slide 13: Q&A
Q&A 13
Slide 14: Appendix
Appendix 15 Orders $ 16 Orders units 17 Revenues $ 18 2022 Outlook 14
Slide 15: Orders - supplemental information
Orders - supplemental information ($ in billions) EQUIPMENT ORDERS SERVICE ORDERS TOTAL ORDERS 3Q'22 y/y 3Q'22 y/y 3Q'22 y/y 3Q'22 y/y 3Q'22 y/y 3Q'22 y/y (org.) YTD (org.) (org.) YTD (org.) (org.) YTD (org.) Aerospace $2.1 (26)% $7.0 4% $5.2 28% $14.4 30% $7.3 6% $21.4 20% HealthCare $2.7 (2)% $8.2
Slide 16: Orders - supplemental information, units
Orders - supplemental information, units (in units) 3Q'22 3Q'21 3Q'22 YTD 3Q'21 YTD Aerospace Commercial Engines 181 418 1,303 1,271 LEAP Engines-a) 101 287 936 866 Military Engines 126 389 159 668 Renewable Energy Wind Turbines-b) 668 1,089 1,232 2,215 Wind Turbine Gigawatts-b),-c) 2.6 5.3 4.6 9.0
Slide 17: Revenues - supplemental information
Revenues - supplemental information ($ in billions) EQUIPMENT REVENUES SERVICE REVENUES TOTAL REVENUES y/y 3Q'22 (org.)* 3Q'22 y/y y/y 3Q'22 (org.)* 3Q'22 y/y y/y 3Q'22 (org.)* 3Q'22 y/y YTD (org.)* YTD (org.)* YTD (org.)* Aerospace $2.0 8% $5.4 (3)% $4.7 33% $13.1 35% $6.7 25% $18.4 21% HealthCare
Slide 18: 2022 Outlook
2022 Outlook Investor Day 1Q Earnings 2Q Earnings 3Q Earnings Outlook assumptions (Mar 10, 2022) (Apr 26, 2022) (Jul 26, 2022) (Oct 25, 2022) • Aerospace: continued ramp in deliveries, internal SVs and spare parts Organic revenue HSD Trending towards low end of range • HealthCare: continued supply c
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 earnings from continuing operations before income taxes 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) 3Q'22 3Q'21 V% 3Q'22 YTD 3Q'21 YTD V% 3Q'22 3Q'21 V% 3Q'22 YTD 3Q'21 YTD V% Aerospace revenues (GAAP) $ 1,968 $ 1,837 7% $ 5,379 $ 5,549 (3)% $ 4,736 $ 3,562
Slide 21: Organic revenues by sub segment
Organic revenues by sub segment ORGANIC REVENUES BY SUB SEGMENT (NON-GAAP) (Dollars in millions) 3Q'22 3Q'21 V% 3Q'22 YTD 3Q'21 YTD V% Aerospace commercial services revenues (GAAP) $ 3,502 $ 2,385 47 % $ 9,178 $ 6,132 50 % 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) 3Q'22 3Q'21 V$ 3Q'22 YTD 3Q'21 YTD V$ CFOA (GAAP) $ 1,320 $ 1,464 $ (143) $ 1,293 $ (1,527) $ 2,820 Less: Insurance CFOA (7) (4) 48 40 CFOA excluding Insurance (Non-GAAP) $ 1
Slide 23: Adjusted earnings from continuing operations before income taxes
Adjusted earnings from continuing operations before income taxes ADJUSTED EARNINGS FROM CONTINUING OPERATIONS BEFORE INCOME TAXES 3Q'22 QTD 3Q'21 QTD V% 3Q'22 YTD 3Q'21 YTD V% Total revenues (GAAP) 19,084 18,569 3% 54,769 53,893 2% Less: Insurance revenues (Note 12) 646 756 2,179 2,295 Adjusted reve
Slide 24: Upcoming calendar
Upcoming calendar GE HealthCare Investor Day December 8, 2022 4Q’22 earnings January 24, 2023 GE Investor Day March 9, 2023 1Q'23 earnings April 25, 2023 2Q'23 earnings July 25, 2023 3Q'23 earnings October 24, 2023 4Q'23 earnings January 23, 2024 24