Ge Aerospace · NYSE:GE
Ge Aerospace — General Electric Company — Q1 2021 Earnings Presentation
28 slides from Ge Aerospace's earnings presentation, Apr 27, 2021
Slide 1: GE 2021 first quarter performance
April 27, 2021 GE 2021 first quarter performance Financial results & company highlights 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: 1Q 2021 snapshot
1Q 2021 snapshot Results Dynamics • Organic top-line still pressured ... Healthcare strength more GE Industrial than offset by Aviation (10)% organic revenue decline* • Adjusted GE Industrial margins* of 5.1% ... with organic Adjusted GE Industrial expansion in Power, Renewable Energy & Healthcare 1
Slide 3: A more focused, simpler, & stronger GE
A more focused, simpler, & stronger GE Building momentum on a stronger foundation Driving profitable growth & value • GECAS/AerCap combination an important catalyst … • Leading positions to capture strategic opportunities … focusing portfolio; committed to debt reduction energy transition, precision
Slide 4: Earnings performance
Earnings performance ($ in billions – except EPS) 1Q’21 y/y y/y (org.) 1Q’21 EPS walk-c) Orders $17.0 (13)% (8)% GAAP Continuing EPS $0.00 Backlog 383.4 (4)% - RPO-a) 227.0 (6)% Less: MTM & Gains 0.03 Revenues 17.1 (12)% - GE Industrial 16.3 (13)% (10)%* Less: Restructuring & other-d) (0.01) Adjuste
Slide 5: Industrial free cash flow
Industrial free cash flow ($ in billions) 1Q’21 y/y 1Q’21 commentary Net earnings (loss)-a) 0.2 (6.2) • Industrial FCF* performance up $1.7B y/y ex BioPharma Depreciation & amortization 0.7 (0.0) • Prior year earnings include non-cash items, offset in Other CFOA (BioPharma gain, BKR MTM) Operating w
Slide 6: Liquidity and deleveraging update
Liquidity and deleveraging update ($ in billions) Cumulative debt reduction-a) Progress >$70 • Strong liquidity with $32B of cash … maintaining flexibility, ~$12 ample additional sources going forward (BKR, AER) $43 $16 $8 ~$60-b) • Majority of factoring programs discontinued April 1 Factoring $3 $1
Slide 7: 1Q'21 Industrial segments results
1Q’21 Industrial segments results ($ in billions) Power Renewable Energy Aviation Healthcare y/y y/y y/y y/y $/% y/y (org.)* $/% y/y (org.)* $/% y/y (org.)* $/% y/y (org.)* Orders $3.6 (12)% (12)% $3.5 15% 13% $5.5 (26)% (26)% $4.5 (15)% 5% Revenue $3.9 (3)% (4)% $3.2 2% -% $5.0 (28)% (27)% $4.3 (9)
Slide 8: 1Q'21 GE Capital & Corporate results
1Q’21 GE Capital & Corporate results ($ in billions) GE Capital Corporate 1Q’21 y/y / $ y/y sequential Functions & Operations $(0.2) 42% Adjusted earnings*-a) $(0.1) 53% y/y EH&S-c) and other items $(0.1) U Assets $98.5 $(5.9) (ex-liquidity)*-b) sequential Eliminations $0.0 F Discontinued $(2.9) U o
Slide 9: Wrap-up
Wrap-up Solid 1Q results set us up well to deliver 2021 commitments Transforming to a more focused, simpler, stronger industrial company Driving profitable growth & value for the long term Leading positions to capture Serving customers in Focus on growth, strategic opportunities & vital global marke
Slide 10: Q&A
Q&A 10
Slide 11: Appendix
Appendix • 2021 overview • Aviation update: what we’re seeing • Liquidity & Debt update • Maturity profile • 2020 GE Capital Results – post GECAS reclassification to discontinued operations • GE Capital assets excluding liquidity • GECAS supplemental information 11
Slide 12: 2021 overview (March 10, 2021)
2021 overview (March 10, 2021) Revenues Margins Outlook assumptions • Aviation market recovery beginning 2H… top line flat to up LSD 250+ bps expansion • Gas a key enabler of energy transition … services growth, (GE Industrial organic*) (Adjusted GE Industrial selective equipment deals organic margi
Slide 13: Aviation update: what we're seeing
Aviation update: what we’re seeing End market dynamics: departures-a) Dynamics 125 GE/CFM departures • Commercial Engines: Aligned to production rates … 2Q units roughly flat y/y and q/q ~(34)% compared to 100 weekly baseline • Commercial Aftermarket: 2Q shop visits-d) trending ~25% y/y, ~flat q/q 7
Slide 14: Liquidity & Debt update
Liquidity & Debt update ($ in billions) GE Industrial cash balance walk GE Capital cash balance walk Beginning balance – 4Q’20 $23.2 Beginning balance – 4Q’20 -a) $13.3 GE Industrial FCF* (0.8) Business operations / other 1.2 BKR proceeds 0.7 Contractual debt maturities (0.9) Other borrowings (0.4)
Slide 15: Maturity profile
Maturity profile ($ in billions) GE Industrial GE Capital $18.9B long term debt maturities $50.0B long term debt maturities outstanding as of March 31, 2021-a) outstanding as of March 31, 2021-a) 32.1 YTD maturities - YTD maturities $0.9b) (a – Principal amount outstanding on publicly traded long te
Slide 16: 2020 GE Capital Results – post GECAS reclass to discontinued operations
2020 GE Capital Results – post GECAS reclass to discontinued operations Statement of Earnings (Loss) In millions 1Q’20 2Q’20 3Q’20 4Q’20 2020 Revenues $837 $861 $758 $843 $3,298 Continuing earnings $(187) $(476) $(29) $(232) $(924) (loss) Discontinued $(7) $(983) $(48) $163 $(876) earnings (loss) Ad
Slide 17: GE Capital assets ex. liquidity
GE Capital ($ in billions) assets ex. liquidity* Segment assets 1Q’21 4Q’20 Seq. EFS $2.4 $2.4 (1)% WCS 4.6 5.9 (22)% Insurance 50.4 50.8 (1)% Other continuing 14.4 18.6 (22)% Total segment assets $71.7 $77.7 (8)% Plus: assets of discontinued operations-a) 36.8 40.6 (9)% Less: discontinued operation
Slide 18: GECAS supplemental information
GECAS supplemental information … due to pending GECAS/AerCap transaction, last quarter of portfolio disclosure ($ in billions) Loans and leases Collateral type 1Q’21 4Q’20 1Q’20 Narrow-body aircraft $13.7 $14.1 $14.1 Wide-body aircraft 6.0 6.0 6.6 Cargo 1.7 1.6 1.3 Regional jets 1.3 1.4 1.6 Helicopt
Slide 19: Non-GAAP reconciliations
Non-GAAP reconciliations • Gas Power & Power Portfolio organic revenues • Gas Power equipment & service organic revenues • Gas Power fixed costs • Aviation Commercial Services & Engines organic revenues • Aviation Military organic revenues • Healthcare Systems & PDx organic revenues • Adjusted Earni
Slide 20: Non-GAAP reconciliation: Gas Power & Power Portfolio organic revenues
Non-GAAP reconciliation: Gas Power & Power Portfolio organic revenues GAS POWER ORGANIC REVENUES (NON-GAAP) (Dollars in millions) 1Q'21 1Q'20 V% Gas Power revenues (GAAP) $ 2,829 $ 2,859 (1)% Adjustments: Less: acquisitions - - Less: business dispositions - - Less: foreign currency effect 15 - Gas P
Slide 21: Non-GAAP reconciliation: Gas Power equipment & service organic revenues
Non-GAAP reconciliation: Gas Power equipment & service organic revenues GAS POWER ORGANIC EQUIPMENT REVENUES (NON-GAAP) (Dollars in millions) 1Q'21 1Q'20 V% Gas Power equipment revenues (GAAP) $ 834 $ 1,095 (24)% Adjustments: Less: acquisitions - - Less: business dispositions - - Less: foreign curre
Slide 22: Non-GAAP reconciliation: Gas Power fixed costs
Non-GAAP reconciliation: Gas Power fixed costs GAS POWER FIXED COSTS (NON-GAAP) (Dollars in millions) 2021F 2020 2018 Gas Power total costs and expenses (GAAP) 11,000 - 12,000 12,302 $ 14,239 Less: Gas Power variable costs (Non-GAAP) 8,500 - 9,500 9,635 10,773 Gas Power fixed costs (Non-GAAP) $ 2,50
Slide 23: Non-GAAP reconciliation: Aviation Commercial Services & Engines organic revenues
Non-GAAP reconciliation: Aviation Commercial Services & Engines organic revenues AVIATION COMMERCIAL SERVICES ORGANIC REVENUES (NON-GAAP) (Dollars in millions) 1Q'21 1Q'20 V% Aviation commercial services revenues (GAAP) $ 1,988 $ 3,294 (40)% Adjustments: Less: acquisitions - - Less: business disposi
Slide 24: Non-GAAP reconciliation: Aviation Military organic revenues
Non-GAAP reconciliation: Aviation Military organic revenues AVIATION MILITARY ORGANIC REVENUES (NON-GAAP) (Dollars in millions) 1Q'21 1Q'20 V% Aviation military revenues (GAAP) $ 956 $ 960 -% Adjustments: Less: acquisitions - - Less: business dispositions - - Less: foreign currency effect - - Aviati
Slide 25: Non-GAAP reconciliation: Healthcare Systems & PDx organic revenues
Non-GAAP reconciliation: Healthcare Systems & PDx organic revenues HEALTHCARE SYSTEMS ORGANIC REVENUES (NON-GAAP) (Dollars in millions) 1Q'21 1Q'20 V% Healthcare Systems revenues (GAAP) $ 3,825 $ 3,448 11% Adjustments: Less: acquisitions - (17) Less: business dispositions - - Less: foreign currency
Slide 26: Non-GAAP reconciliation: Adjusted Earnings (Loss) and Adjusted EPS Excluding Bio-Pharma
Non-GAAP reconciliation: Adjusted Earnings (Loss) and Adjusted EPS Excluding Bio-Pharma ADJUSTED EARNINGS (LOSS) EXCLUDING BIOPHARMA (NON-GAAP) (Dollars in millions) 1Q'21 1Q'20 V% Adjusted earnings (loss) (Non-GAAP) $ 256 $ 194 32% Less: BioPharma net earnings - 301 (100%) Adjusted earnings (loss)
Slide 27: Non-GAAP reconciliation: GE Industrial free cash flow (FCF) and excluding BioPharma FCF
Non-GAAP reconciliation: GE Industrial free cash flow (FCF) and GE Industrial excluding BioPharma FCF GE INDUSTRIAL FREE CASH FLOW (FCF) (NON-GAAP) (Dollars in millions) 1Q'21 1Q'20 V$ GE Industrial CFOA (GAAP) $ (491) $ (1,662) $ 1,171 Add: gross additions to property, plant and equipment (332) (50
Slide 28: Upcoming calendar
Upcoming calendar Annual Shareholders Meeting May 4, 2021 2Q’21 earnings July 27, 2021 3Q’21 earnings October 26, 2021 4Q’21 earnings January 25, 2022 28
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