Slide 1: GE fourth quarter & full year 2022 performance
GE fourth quarter & full year 2022 performance Financial results & company highlights January 24, 2023 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 d
Slide 2: A new era begins ...
A new era begins ... Strong 4Q finish Strong GE Vernova: improving with & successful GE Aerospace Power delivering & GE HealthCare spin results Renewable Energy taking action
Slide 3: 2022 snapshot
2022 snapshot GE, including GE HealthCare 4Q'22 FY'22 RESULTS Y/Y VARIANCE-a) RESULTS Y/Y VARIANCE-a) Orders $25.4B +18% $83.0B +7% Adjusted revenue* $21.0B +11% $73.6B +6% Adjusted profit margin* 10.3% +290 bps 7.9% +160 bps Adjusted EPS* $1.24 +$0.42, +51% $2.62 +$0.91, +53% Free cash flow* $4.3B
Slide 4: GE Aerospace
GE Aerospace ($ in billions) 4Q'22 RESULTS 4Q'22 DYNAMICS-a) • Orders: $9.7B, +26% … Commercial Services & Military equipment • Revenue: $7.6B, +26%* ... services, notably Commercial, & equipment from higher LEAP engine deliveries • Margin: 18.8%, (150)bps* ... volume & price offsetting negative eng
Slide 5: Renewable Energy
Renewable Energy part of GE Vernova, GE's portfolio of energy businesses ($ in billions) 4Q'22 RESULTS 4Q'22 DYNAMICS-a) • Orders: $5.0B, +7% ... equipment growth from Grid & Onshore in North America • Revenue: $3.4B, (13)%* … lower Onshore deliveries • Margin: (13.3)%, (260)bps* … Grid improvement
Slide 6: Power
Power part of GE Vernova, GE's portfolio of energy businesses ($ in billions) 4Q'22 RESULTS 4Q'22 DYNAMICS-a) • Orders: $5.4B, +29% … higher Aeroderivatives equipment & transactional services growth • Revenue: $5.0B, +12%* ... Aeroderivative equipment & total services growth • Margin: 13.8%, +710bps
Slide 7: FY 2023 Outlook
FY 2023 Outlook GE, excluding GE HealthCare 2022 2023 EX-GEHC OUTLOOK GE AEROSPACE Mid-to-high teens growth, $5.3B-$5.7B profit, FCF* up Organic revenue growth* +6% +HSD • High-teens to ~20% Commercial Services & ~20% engines growth, +HSD Military growth • Profit: volume, price + productivity > mix
Slide 8: Building momentum toward independent industry leaders
Building momentum toward independent industry leaders Driving continued GE Aerospace GE Vernova growth in 2023 executing on ramp with making progress & significant profit growth preparing to spin Leading in critical growth sectors ... Future of Flight & Energy Transition 8
Slide 9: Q&A
CFM signed an agreement for Air France KLM Engineering & Maintenance to provide the full Q&A scope of LEAP MRO services for operators worldwide Gas Power secured an order from the Swiss Federal Office of Energy, renting eight mobile aeroderivative gas turbine units to help meet electricity demand du
Slide 10: Appendix
Appendix 11 HealthCare Operating segment results 12 TY Operating segment results 13 Orders $ 14 Backlog $ 15 Revenue $ 16 Orders and Sales units 17 FCF 18 FCF details 10
Slide 11: GE HealthCare
GE HealthCare ($ in billions) 4Q'22 RESULTS (GE basis) GE HealthCare (NASDAQ: GEHC) spun off from GE on January 3, 2023 and is now a standalone company that will release its financial results in connection with their earnings call on January 30, 2023. 2Q20 2Q21 Rev. Growthorg* (4)% 2% 4% 10% 12% Pro
Slide 12: 2022 Operating segments results
2022 Operating segments results GE results, including GE HealthCare ($ in billions) HEALTHCARE AEROSPACE RENEWABLES POWER (GE basis) y/y y/y y/y y/y $/% (org.)* $/% (org.)* $/% (org.)* $/% (org.)* Orders $31.1 22% $14.7 (17)% $17.8 13% $19.9 4% Revenue $26.0 23% $13.0 (13)% $16.3 2% $18.5 7% Segment
Slide 13: Orders - supplemental information
Orders - supplemental information GE results, including GE HealthCare ($ in billions) EQUIPMENT ORDERS SERVICE ORDERS TOTAL ORDERS 4Q'22 y/y FY'22 y/y 4Q'22 y/y FY'22 y/y 4Q'22 y/y FY'22 y/y (org.) (org.) (org.) (org.) (org.) (org.) Aerospace $4.4 48% $11.4 17% $5.3 12% $19.7 25% $9.7 26% $31.1 22%
Slide 14: Backlog - supplemental information
Backlog - supplemental information GE results, including GE HealthCare ($ in billions) EQUIPMENT BACKLOG SERVICE BACKLOG TOTAL BACKLOG 4Q'22 y/y 4Q'22 y/y 4Q'22 y/y Aerospace $39.7 9% $312.9 17% $352.6 16% Renewable Energy $20.1 8% $12.7 (1)% $32.8 4% Power $13.4 (6)% $60.9 2% $74.3 —% HealthCare $7
Slide 15: Revenues - supplemental information
Revenues - supplemental information GE results, including GE HealthCare ($ in billions) EQUIPMENT REVENUES SERVICE REVENUES TOTAL REVENUES y/y 4Q'22 (org.)* y/y FY'22 (org.)* y/y 4Q'22 (org.)* y/y FY'22 (org.)* y/y 4Q'22 (org.)* y/y FY'22 (org.)* Aerospace $2.5 26% $7.8 5% $5.2 26% $18.2 32% $7.6 26
Slide 16: Orders and Sales - supplemental information, units
Orders and Sales - supplemental information, units (in units) ORDERS SALES 4Q'22 4Q'21 FY22 FY21 4Q'22 4Q'21 FY22 FY21 Aerospace Aerospace Commercial Engines 824 977 2,127 2,248 Commercial Engines 476 368 1,663 1,487 LEAP Engines-a) 579 591 1,515 1,457 LEAP Engines-a) 324 220 1,136 845 Military Engi
Slide 17: Free cash flow* performance
Free cash flow* performance GE results, including GE HealthCare ($ in billions) 4Q'22 y/y FY'22 y/y FY'22 DYNAMICS Net earnings (loss)-a) 2.3 5.8 0.9 4.3 Debt extinguishment costs 0.5 (4.6) 0.5 (6.1) • Positive contribution from earnings & working capital … y/y improvement from earnings and debt red
Slide 18: 2022 Free cash flow* details
2022 Free cash flow* details GE results, including GE HealthCare ($ in billions) 2022 1Q'22 2Q'22 3Q'22 4Q'22 Total Aerospace Renewables Power HealthCare Corporate Company Net earnings (loss)-a) (0.7) (0.6) (0.1) 2.3 0.9 3.9 (2.2) 0.9 2.1 (3.8) Debt extinguishment costs — — — 0.5 0.5 — — — — 0.5 Dep
Slide 19: Non-GAAP reconciliations
Non-GAAP reconciliations 20 Organic revenues, profit (loss) & profit margin by segment 21 Organic revenues, including and excluding GE HealthCare 22 Organic revenues by sub segment 23 Equipment & service organic revenues 24 Equipment & service organic revenues by sub segment 25 Adjusted profit & pro
Slide 20: Organic revenues, profit (loss) and profit margin by segment
Organic revenues, profit (loss) and profit margin by segment ORGANIC REVENUES, PROFIT (LOSS) AND PROFIT MARGIN BY SEGMENT (NON-GAAP) REVENUES PROFIT (LOSS) PROFIT MARGIN REVENUES PROFIT (LOSS) PROFIT MARGIN (Dollars in millions) 4Q'22 4Q'21 V% 4Q'22 4Q'21 V% 4Q'22 4Q'21 V pts 2022 2021 V% 2022 2021
Slide 21: Organic revenues and Organic revenues excluding GE HealthCare
Organic revenues and Organic revenues excluding GE HealthCare ORGANIC REVENUES (NON-GAAP) (Dollars in millions) 4Q'22 4Q'21 V% 2022 2021 V% Total revenues (GAAP) $ 21,786 $ 20,303 7% $ 76,555 $ 74,196 3% Less: Insurance revenues 775 811 2,954 3,106 Adjusted revenues (Non-GAAP) $ 21,011 $ 19,492 8% $
Slide 22: Organic revenues by sub segment
Organic revenues by sub segment ORGANIC REVENUES BY SUB SEGMENT (NON-GAAP) (Dollars in millions) 4Q'22 4Q'21 V% 2022 2021 V% Aerospace commercial services revenues (GAAP) $ 3,680 $ 2,864 28 % $ 12,858 $ 8,995 43 % Less: acquisitions — — — — Less: business dispositions — — — — Less: foreign currency
Slide 23: Equipment & service organic revenues
Equipment & service organic revenues EQUIPMENT AND SERVICES ORGANIC REVENUES (NON-GAAP) EQUIPMENT SERVICES (Dollars in millions) 4Q'22 4Q'21 V% 2022 2021 V% 4Q'22 4Q'21 V% 2022 2021 V% Aerospace revenues (GAAP) $ 2,463 $ 1,982 24 % $ 7,842 $ 7,531 4% $ 5,152 $ 4,099 26 % $ 18,207 $ 13,780 32 % Less:
Slide 24: Equipment & service organic revenues by sub segment
Equipment & service organic revenues by sub segment EQUIPMENT AND SERVICES ORGANIC REVENUES BY SUB SEGMENT (NON-GAAP) EQUIPMENT SERVICES (Dollars in millions) 4Q'22 4Q'21 V% 2022 2021 V% 4Q'22 4Q'21 V% 2022 2021 V% Gas Power revenues (GAAP) $ 1,241 $ 850 46 % $ 3,460 $ 3,220 7% $ 2,597 $ 2,491 4% $
Slide 25: Adjusted profit & profit margin
Adjusted profit & profit margin ADJUSTED PROFIT AND PROFIT MARGIN (EXCLUDING CERTAIN ITEMS) (NON-GAAP) (Dollars in millions) 4Q'22 4Q'21 V% 2022 2021 V% Total revenues (GAAP) $ 21,786 $ 20,303 7 % $ 76,555 $ 74,196 3 % Less: Insurance revenues 775 811 2,954 3,106 Adjusted revenues (Non-GAAP) $ 21,01
Slide 26: Adjusted profit & profit margin excluding GE HealthCare
Adjusted profit & profit margin excluding GE HealthCare ADJUSTED PROFIT AND PROFIT MARGIN (EXCLUDING CERTAIN ITEMS) EXCLUDING GE HEALTHCARE (NON-GAAP) (Dollars in millions) 1Q'22 2022 Total revenues excluding GE HealthCare (GAAP) $ 12,678 $ 58,096 Less: Insurance revenues 767 2,954 Adjusted revenues
Slide 27: Adjusted organic profit and profit margin
Adjusted organic profit and profit margin ADJUSTED ORGANIC PROFIT (NON-GAAP) (Dollars in millions) 4Q'22 4Q'21 V% 2022 2021 V% Adjusted profit (loss) (Non-GAAP) $ 2,162 $ 1,575 37 % $ 5,835 $ 4,608 27 % Less: acquisitions 2 (15) (72) (32) Less: business dispositions — 1 — 14 Less: foreign currency e
Slide 28: Adjusted earnings (loss) and Adjusted earnings (loss) per share
Adjusted earnings (loss) and Adjusted earnings (loss) per share ADJUSTED EARNINGS (LOSS) (NON-GAAP) 4Q'22 4Q'21 V% 2022 2021 V% (Dollars in millions, per-share amounts in dollars) Earnings EPS Earnings EPS Earnings EPS Earnings EPS Earnings EPS Earnings EPS Earnings (loss) from continuing operations
Slide 29: Adjusted earnings (loss) per share excluding GE HealthCare
Adjusted earnings (loss) and Adjusted earnings (loss) per share excluding GE HealthCare ADJUSTED EARNINGS (LOSS) EXCLUDING GE HEALTHCARE (NON-GAAP) 1Q'22 2022 (Dollars in millions, per-share amounts in dollars) Earnings EPS Earnings EPS Earnings (loss) from continuing operations excluding GE HealthC
Slide 30: Adjusted tax rate and Adjusted earnings from continuing operations before income taxes
Adjusted tax rate and Adjusted earnings from continuing operations before income taxes ADJUSTED TAX RATE (NON-GAAP) (Dollars in millions) 4Q'22 4Q'21 V% 2022 2021 V% Earnings (loss) from continuing operations before taxes (GAAP) $ 2,237 $ (3,467) $ 1,412 $ (3,683) Less: Insurance earnings (26) 140 6
Slide 31: Free cash flows (FCF) and FCF excluding GE HealthCare
Free cash flows (FCF) (including and excluding discontinued factoring) and Free cash flows (FCF) excluding GE HealthCare FREE CASH FLOWS (FCF) (NON-GAAP) (Dollars in millions) 4Q'22 4Q'21 V$ 2022 2021 V$ CFOA (GAAP) $ 4,571 $ 2,415 $ 2,156 $ 5,864 $ 888 $ 4,976 Less: Insurance CFOA 88 46 136 86 CFOA
Slide 32: Free cash flows (FCF) by quarter
Free cash flows (FCF) by quarter (including and excluding discontinued factoring) FREE CASH FLOWS (FCF) (NON-GAAP) (Dollars in millions) 1Q'22 2Q'22 3Q'22 4Q'22 2022 CFOA (GAAP) $ (535) $ 508 $ 1,320 $ 4,571 $ 5,864 Less: CFOA from insurance (15) 70 (7) 88 136 CFOA excluding Insurance (Non-GAAP) $ (
Slide 33: Free cash flows (FCF) by segment
Free cash flows (FCF) by segment (including and excluding discontinued factoring) 2022 FREE CASH FLOWS (FCF) (Non-GAAP) (Dollars in millions) Aerospace Renewables Power HealthCare Corporate Total Company CFOA (GAAP) $ 5,514 $ (1,759) $ 2,078 $ 2,435 $ (2,404) $ 5,864 Less: Insurance CFOA — — — — 136
Slide 34: Adjusted Corporate costs
Adjusted Corporate costs CORPORATE REVENUES AND PROFIT (COST) (Dollars in millions) 4Q'22 4Q'21 V% 2022 2021 V% Corporate revenues $ 247 $ 253 $ 882 $ 945 Insurance revenues 775 811 2,954 3,106 Eliminations and other (260) (319) (1,030) (1,490) Total Corporate revenues $ 762 $ 745 2 %$ 2,806 $ 2,561
Slide 35: GE, including GE HealthCare - net debt
GE, including GE HealthCare - net debt Market Aligned Approach Rating Agency Aligned Approach • Measure introduced in 4Q’21 to provide • Measure introduced in 2018. Aligned to credit another market view to GE’s leverage. rating methodology. NET DEBT (NON-GAAP) NET DEBT (NON-GAAP) (Dollars in million
Slide 36: GE, excluding GE HealthCare - net debt
GE, excluding GE HealthCare - net debt Market Aligned Approach Rating Agency Aligned Approach • Measure introduced in 4Q’21 to provide • Measure introduced in 2018. Aligned to credit another market view to GE’s leverage. rating methodology. NET DEBT (NON-GAAP) NET DEBT (NON-GAAP) excluding GE exclud
Slide 37: GE, including GE HealthCare - EBITDA & leverage
GE, including GE HealthCare - EBITDA & leverage Approaches • Market Aligned: Measure introduced in 4Q’21 to provide another market view to GE’s leverage. • Rating Agency Aligned: Measure introduced in 2018. Aligned to credit rating methodology. GE LEVERAGE (NON-GAAP) (Dollars in millions) December 3
Slide 38: GE, excluding GE HealthCare - EBITDA & leverage
GE, excluding GE HealthCare - EBITDA & leverage Approaches • Market Aligned: Measure introduced in 4Q’21 to provide another market view to GE’s leverage. • Rating Agency Aligned: Measure introduced in 2018. Aligned to credit rating methodology. GE LEVERAGE (NON-GAAP) excluding GE (Dollars in million
Slide 39: Upcoming calendar
Upcoming calendar 2023 GE Investor Conference March 9, 2023 1Q'23 earnings April 25, 2023 Annual Shareholders Meeting May 3, 2023 2Q'23 earnings July 25, 2023 3Q'23 earnings October 24, 2023 4Q'23 earnings January 23, 2024 39