Slide 1: GE second quarter 2023 performance
GE second quarter 2023 performance Financial results & company highlights July 25, 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 different degree
Slide 2: Strong first half for GE
Strong first half for GE GE GE Aerospace GE Vernova delivers strong 2Q & 1H growing rapidly with OE advancing towards due to market strength & ramp & services strength … spin as Renewable lean transformation within defining flight for today, Energy improves & more focused businesses tomorrow & futur
Slide 3: 2Q'23 snapshot
2Q'23 snapshot RESULTS Y/Y-a) DYNAMICS • Services strength, robust demand & improving business Orders $22.0B +58% execution continuing to drive profitable growth ◦ Orders up in all segments ... services +21%org, equipment favorableorg y/y Adjusted revenue* $15.9B +19% ◦ Adjusted revenues* ... servic
Slide 4: GE Aerospace
GE Aerospace ($ in billions) 2Q'23 RESULTS 2Q'23 DYNAMICS-a) • Orders: $9.5B, +37% ... Commercial Services & Defense • Revenue: $7.9B, +28%* ... equipment growth with deliveries +85% LEAP & +74% Defense y/y; +31% Commercial Services growth • Profit: $1.5B, +26%* ... volume, price & productivity offs
Slide 5: GE Vernova: Renewable Energy
GE Vernova-a): Renewable Energy ($ in billions) 2Q'23 RESULTS 2Q'23 DYNAMICS-b) • Orders: $8.3B, favorable y/y ... Grid, Offshore & Onshore equipment in North America • Revenue: $3.8B, +27%* … equipment growth across Onshore, Offshore & Grid • Profit: $(0.4)B, +35%* ... price, productivity & volume
Slide 6: GE Vernova: Power
GE Vernova-a): Power ($ in billions) 2Q'23 RESULTS 2Q'23 DYNAMICS-b) • Orders: $4.3B, +7% ... Gas services strength • Revenue: $4.2B, (2)%* ... services growth offset by lower Aeroderivative deliveries • Profit: $0.4B, +11%* ... productivity, price & services volume, partially offset by inflation •
Slide 7: Building a world that works
Building a world that works We invent the future of flight, We We electrify are united and decarbonize by a single, the lift people up and urgent planet,purpose and together, to helpwe electrify have bring them home safely. the&energy decarbonize to change the planet: the world. because together, we
Slide 8: Q&A
Signed historic Memorandum of Understanding (MOU) with Image TBU Q&A Hindustan Aeronautics Limited (HAL) to produce fighter jet engines for the Indian Air Force Indian Air force fighter jet Announced the commercial operation of Caithness Energy’s 1,875-megawatt Guernsey Power Station to support grid
Slide 9: Appendix
Appendix 10 Orders $ 11 Orders units 12 Revenue $ 13 FCF 14 FY'23 Guidance 9
Slide 10: Orders - supplemental information
Orders - supplemental information ($ in billions) EQUIPMENT ORDERS SERVICE ORDERS TOTAL ORDERS y/y 2Q'23 y/y 2Q'23 (org.) y/y 2Q'23 y/y 2Q'23 (org.) y/y 2Q'23 y/y 2Q'23 (org.) YTD (org.) YTD (org.) YTD (org.) Aerospace $3.6 48% $6.1 24% $5.8 30% $11.6 26% $9.5 37% $17.7 25% Renewable Energy $7.6 Fav
Slide 11: Orders - supplemental information, units
Orders - supplemental information, units (in units) 2Q'23 2Q'22 2Q'23 YTD 2Q'22 YTD Aerospace Commercial Engines 914 569 1,433 1,122 LEAP Engines-a) 461 393 742 835 Defense Engines 355 14 511 33 Renewable Energy Wind Turbines-b) 547 261 1,076 564 Wind Turbine Gigawatts-b),-c) 2.9 0.9 4.5 2.0 Repower
Slide 12: Revenues - supplemental information
Revenues - supplemental information ($ in billions) EQUIPMENT REVENUES SERVICE REVENUES TOTAL REVENUES y/y 2Q'23 (org.)* 2Q'23 y/y y/y 2Q'23 (org.)* 2Q'23 y/y y/y 2Q'23 (org.)* 2Q'23 y/y YTD (org.)* YTD (org.)* YTD (org.)* Aerospace $2.5 44% $4.5 32% $5.3 22% $10.3 24% $7.9 28% $14.8 27% Renewable E
Slide 13: Free cash flow performance
Free cash flow* performance ($ in billions) 2Q'23 2Q'23 y/y YTD y/y 2Q'23 DYNAMICS Net earnings (loss)-a) 1.1 2.2 7.3 9.6 • Robust earnings delivered Depreciation & amortization 0.5 (0.0) 1.0 (0.8) • Solid working capital management given growth: Operating working capital 0.1 (0.1) (0.4) 0.5 Current
Slide 14: FY 2023 Guidance: as of July 25, 2023
FY 2023 Guidance: as of July 25, 2023 Total company 2023 ◦ High teens to 20% organic revenue growth* ◦ $5.6B - $5.9B operating profit Revenue growth*-b) +LDD prior: +HSD ◦ FCF* up year-over-year Adjusted EPS* $2.10 - $2.30 prior: $1.70 - $2.00 ◦ MSD organic revenue growth* Free cash flow* $4.1B - $4
Slide 15: Non-GAAP reconciliations
Non-GAAP reconciliations 16 Equipment & service organic revenues 17 Organic revenues by sub segment 18 Adjusted earnings from continuing operations before income taxes 19 Free cash flows (FCF) 15
Slide 16: Equipment & service organic revenues by segment
Equipment & service organic revenues by segment EQUIPMENT AND SERVICES ORGANIC REVENUES (NON-GAAP) EQUIPMENT SERVICES (Dollars in millions) 2Q'23 2Q'22 V% 2Q'23 YTD 2Q'22 YTD V% 2Q'23 2Q'22 V% 2Q'23 YTD 2Q'22 YTD V% Aerospace revenues (GAAP) $ 2,533 $ 1,757 44 % $ 4,507 $ 3,411 32 % $ 5,327 $ 4,370
Slide 17: Organic revenues by sub segment
Organic revenues by sub segment ORGANIC REVENUES BY SUB SEGMENT (NON-GAAP) (Dollars in millions) 2Q'23 2Q'22 V% 2Q'23 YTD 2Q'22 YTD V% Aerospace commercial services revenues (GAAP) $ 3,883 $ 2,956 31 % $ 7,553 $ 5,676 33 % Less: acquisitions — — — — Less: business dispositions — — — — Less: foreign
Slide 18: Adjusted earnings from continuing operations before income taxes
Adjusted earnings from continuing operations before income taxes ADJUSTED EARNINGS FROM CONTINUING OPERATIONS BEFORE INCOME TAXES (NON-GAAP) (Dollars in millions) 2Q'23 2Q'22 V% 2Q'23 YTD 2Q'22 YTD V% Total revenues (GAAP) 16,699 14,127 18 % 31,185 26,802 16 % Less: Insurance revenues 847 766 1,639
Slide 19: Free cash flows (FCF)
Free cash flows (FCF) FREE CASH FLOWS (FCF) (NON-GAAP) (Dollars in millions) 3Q'22 CFOA (GAAP) $ 813 Less: Insurance CFOA (7) CFOA excluding Insurance (Non-GAAP) $ 820 Add: gross additions to property, plant and equipment and internal-use software (252) Less: separation cash expenditures (60) Less:
Slide 20: Upcoming calendar
Upcoming calendar 3Q'23 earnings October 24, 2023 4Q'23 earnings January 23, 2024 20