Slide 1: Industrial Segment Profit and Margin
2013 2014 Industrial Segment 1% 6% Industrial Segment Organic * Flat 7% Financial Services (4)% (1)% INDUSTRIAL SEGMENT PROFIT INDUSTRIAL SEGMENT MARGIN
Slide 2: $17.8 2012 2013 2014
$17.8 2012 2013 2014
Slide 3: Industrial Orders and Backlog
INDUSTRIAL ORDERS INDUSTRIAL BACKLOG
Slide 4: $111.8 2012 2013 2014
$111.8 2012 2013 2014
Slide 5: Key Performance Indicators: Industrial/GE Capital Operating Earnings
Equipment Services *Non-GAAP Financial Measure KEY PERFORMANCE INDICATORS (Dollars in billions) INDUSTRIAL/GE CAPITAL OPERATING EARNINGS* 2014 Actual*
Slide 6: GE Executing Strategy to Achieve 75% Industrial Operating Earnings by 2016
GE IS EXECUTING ON ITS STRATEGY TO ACHIEVE 75% OF ITS OPERATING EARNINGS FROM ITS INDUSTRIAL BUSINESSES BY 2016 . The effects of the Synchrony Financial split-off and the Alstom acquisition and alliances will result in progression towards this target. 2016 Goal
Slide 7: GE CFOA and Shareholder Information
GE CFOA SHAREHOLDER INFORMATION
Slide 8: Returned $10.8 Billion to Shareowners in 2014
GECC Dividend Industrial CFOA* RETURNED $10.8 BILLION TO SHAREOWNERS IN 2014 Dividends $8.9 billion Stock buyback $1.9 billion ANNUAL MEETING General Electric's 2015 Annual Meeting of Shareowners will be held on April 22, 2015, in Oklahoma City, Oklahoma. 2013 GE CFOA excluding NBC Universal deal-re
Slide 9: Five-Year Performance Graph
The annual changes for the five-year period shown in the graph on this page are based on the assumption that $100 had been invested in General Electric common stock, the Standard & Poor's 500 Stock Index (S&P 500) and the Dow Jones Industrial Average (DJIA) on December 31, 2009, and that all quarter
Slide 10: Market Information and Consolidated Results
With respect to "Market Information," in the United States, General Electric common stock is listed on the New York Stock Exchange (its principal market). General Electric common stock is also listed on the London Stock Exchange and the Frankfurt Stock Exchange. The chart above shows trading prices,
Slide 11: BUS.
BUS. mwEurope wAsia mAmericas Middle East & Africa
Slide 12: Significant Developments in 2014
SIGNIFICANT DEVELOPMENTS IN 2014
Slide 13: Synchrony IPO, Divestitures and Milestone Acquisition
We completed the initial public offering of our North American Retail Finance business, Synchrony Financial, resulting in proceeds of $2.8 billion and target to complete the exit through a split-off transaction. We sold GE Money Bank AB, our consumer finance business in Sweden, Denmark and Norway to
Slide 14: $145.6 2012 2013 2014
$145.6 2012 2013 2014
Slide 15: Consolidated Revenues Commentary
Equipment Services COMMENTARY: 2014 – 2013 2013 – 2012 Consolidated revenues increased $3.5 billion, or 2%. · Industrial segment revenues increased 6%, reflecting organic growth* of 7% and the effects of acquisitions (primarily Lufkin Industries, Inc. (Lufkin), Avio S.p.A. (Avio) and certain Thermo
Slide 16: $15.7 2012 2013 2014
$15.7 2012 2013 2014
Slide 17: Consolidated Earnings Commentary
COMMENTARY: 2014 – 2013 2013 – 2012 Consolidated earnings increased 7% primarily due to an increase in the operating profit of the industrial segments, partially offset by lower financial services income and the absence of the NBCU LLC related income. · Industrial segment profit increased 10% with g
Slide 18: gUS.
gUS. mEurope mAsia mAmericas Middle East & Africa
Slide 19: Sub-Segment Revenues and Backlog
Equipment Services 2014 SUB-SEGMENT REVENUES BACKLOG
Slide 20: mPGP
mPGP m= PGS m Renewable Energy = Distributed Power = Other
Slide 21: Equipment/Services Revenues and Unit Sales
Equipment Services EQUIPMENT/SERVICES REVENUES UNIT SALES
Slide 22: Services Equipment
Services Equipment
Slide 23: $28.3 $27.6 2012 2013 2014
$28.3 $27.6 2012 2013 2014
Slide 24: Segment Revenues & Profit Walk
SEGMENT REVENUES & PROFIT WALK: COMMENTARY: 2014 – 2013 2014 – 2013 Segment revenues up $2.8 billion (11%); Segment profit up $0.4 billion (7%) as a result of: · The increase in revenues was driven by higher volume, primarily higher equipment sales at PGP and Renewables, partially offset by lower pr
Slide 25: gUS.
gUS. m Europe wAsia m Americas m= Middle East & Africa
Slide 26: Sub-Segment Revenues and Backlog
Equipment Services 2014 SUB-SEGMENT REVENUES BACKLOG
Slide 27: a TMS
a TMS eD&S m M&C aSs aDTS
Slide 28: Equipment/Services Revenues
Equipment Services EQUIPMENT/SERVICES REVENUES
Slide 29: Significant Trends & Developments
Services Equipment SIGNIFICANT TRENDS & DEVELOPMENTS · On June 2, 2014, we acquired Cameron's Reciprocating Compression division for $0.6 billion. The division provides reciprocating compression equipment and aftermarket services for oil and gas production, gas processing, gas distribution and indep
Slide 30: $18.7 2012 2013 2014
$18.7 2012 2013 2014
Slide 31: Segment Revenues & Profit Walk
SEGMENT REVENUES & PROFIT WALK: COMMENTARY: 2014 – 2013 2014 – 2013 Segment revenues up $1.7 billion (10%); Segment profit up $0.4 billion (19%) as a result of: · The increase in revenues was primarily due to higher volume, mainly driven by higher equipment sales at SS, D&S and TMS, as well as the $
Slide 32: gUS.
gUS. m Europe mAsia m Americas Middle East & Africa
Slide 33: Sub-Segment Revenues and Backlog
Equipment Services 2014 SUB-SEGMENT REVENUES BACKLOG
Slide 34: m Industrial Solutions
m Industrial Solutions mw Digital Energy m Power Conversion
Slide 35: Equipment/Services Revenues
Equipment Services EQUIPMENT/SERVICES REVENUES
Slide 36: Significant Trends & Developments
Services Equipment SIGNIFICANT TRENDS & DEVELOPMENTS · We are seeing growth in the liquefied natural gas, onshore electrification, offshore marine, and wind & solar industries, which is driving demand in our Power Conversion business for equipment and services. · While we see signs of growth in the
Slide 37: $7.4 $0.1 $7.6 $0.1 $7.3 $0.2 2012 2013 2014
$7.4 $0.1 $7.6 $0.1 $7.3 $0.2 2012 2013 2014
Slide 38: Commentary
COMMENTARY: 2014 – 2013 2013 – 2012 Segment revenues down $0.3 billion (3%) as a result of: Segment revenues up $0.2 billion (2%) as a result of: · Lower volume ($0.2 billion) from weakness in North American utility and electrical distribution markets, partially offset by higher sales in Power Conve
Slide 39: gUS.
gUS. m Europe mAsia m Americas m Middle East & Africa
Slide 40: Sub-Segment Revenues and Backlog
Equipment Services 2014 SUB-SEGMENT REVENUES BACKLOG
Slide 41: m Commercial Engines &
m Commercial Engines & Services @ Military Systems & Other
Slide 42: Equipment/Services Revenues and Unit Sales
Equipment Services EQUIPMENT/SERVICES REVENUES UNIT SALES
Slide 43: Services Equipment
Services Equipment
Slide 44: $24.0 $21.9 2012 2013 2014
$24.0 $21.9 2012 2013 2014
Slide 45: Segment Revenues & Profit Walk
SEGMENT REVENUES & PROFIT WALK: COMMENTARY: 2014 – 2013 2014 – 2013 Segment revenues up $2.1 billion (9%); Segment profit up $0.6 billion (14%) as a result of: · The increase in revenues was due to higher volume and higher prices driven by Commercial Engines volume, spare parts volume and the third-
Slide 46: BUS.
BUS. mEurope wAsia mAmericas = Middle East & Africa
Slide 47: Sub-Segment Revenues and Backlog
Equipment Services 2014 SUB-SEGMENT REVENUES BACKLOG
Slide 48: mw Healthcare Systems
mw Healthcare Systems m Life Sciences m Healthcare IT m= Other
Slide 49: Equipment/Services Revenues
Equipment Services EQUIPMENT/SERVICES REVENUES Services Equipment
Slide 50: Significant Trends & Developments
Services Equipment SIGNIFICANT TRENDS & DEVELOPMENTS · We continue to lead in technology innovation with greater focus on productivity based technology, services, and IT solutions as healthcare providers seek greater productivity and efficiency. · The U.S. market is improving but uncertainty remains
Slide 51: $18.3 $18.2 $18.3 $2.9 $3.0 2012 2013 2014
$18.3 $18.2 $18.3 $2.9 $3.0 2012 2013 2014
Slide 52: Segment Revenues & Profit Walk
SEGMENT REVENUES & PROFIT WALK: COMMENTARY: 2014 – 2013 2014 – 2013 Segment revenues up $0.1 billion (1%); Segment profit flat as a result of: · The increase in revenues was due to higher volume, driven by the higher sales in Life Sciences. This increase was partially offset by lower prices mainly a
Slide 53: BUS.
BUS. m Europe mAsia m Americas Middle East & Africa
Slide 54: Sub-Segment Revenues and Backlog
Equipment Services 2014 SUB-SEGMENT REVENUES BACKLOG
Slide 55: m Locomotives
m Locomotives m Locomotive Services = Mining m= Other
Slide 56: Equipment/Services Revenues and Unit Sales
Equipment Services EQUIPMENT/SERVICES REVENUES UNIT SALES
Slide 57: Services Equipment
Services Equipment
Slide 58: $5.6 $5.9 $5.7 $1.0 $1.2 2012 2013 2014
$5.6 $5.9 $5.7 $1.0 $1.2 2012 2013 2014
Slide 59: Commentary
COMMENTARY: 2014 – 2013 2013 – 2012 Segment revenues down $0.2 billion (4%) as a result of: · Lower volume ($0.2 billion), primarily in Mining reflecting weakness in the industry, partially offset by an increase in volume in the locomotive services business. Segment profit down 3% as a result of: ·
Slide 60: BUS.
1% BUS. m Europe mAsia m Americas Middle East & Africa
Slide 61: Significant Trends & Developments
SIGNIFICANT TRENDS & DEVELOPMENTS · During the third quarter of 2014, GE signed an agreement to sell its Appliances business to Electrolux for $3.3 billion. The transaction has been approved by the boards of directors of GE and Electrolux and remains subject to customary closing conditions and regul
Slide 62: $8.3 $8.4 2012 2013 2014
0 $8.3 $8.4 2012 2013 2014
Slide 63: Commentary
COMMENTARY: 2014 – 2013 2013 – 2012 Segment revenues up $0.1 billion (1% ) as a result of: · Higher volume ($0.1 billion) driven by higher sales at Appliances. Segment profit up $0.1 billion (13%) as a result of : · Improved productivity ($0.1 billion) including the effects of classifying Appliances
Slide 64: GE Capital Business Overview
GE CAPITAL BUSINESS OVERVIEW Leader: Keith Sherin Headquarters & Operations
Slide 65: BUS.
BUS. m Europe wAsia mu Americas Middle East & Africa
Slide 66: 2014 Sub-Segment Revenues and Tier 1 Common Ratio Estimate
2014 SUB-SEGMENT REVENUES TIER 1 COMMON RATIO ESTIMATE*
Slide 67: m@CLL
m@CLL m= Consumer mu Energy Finance = GECAS
Slide 68: Ending Net Investment and Dividends Returned to Parent
ENDING NET INVESTMENT, EXCLUDING LIQUIDITY* DIVIDENDS RETURNED TO PARENT IN 2014
Slide 69: Significant Trends & Developments: Ending Net Investment
Quarterly Dividends $2.0 billion Special Dividends $1.0 billion Total $3.0 billion * Non-GAAP Financial Measure SIGNIFICANT TRENDS & DEVELOPMENTS ENDING NET INVESTMENT We have communicated our goal of reducing GE Capital's ENI, excluding liquidity, most recently targeting a balance of less than $300
Slide 70: GE Capital Revenues and Profit Commentary
¢ ¢ Revenue ¢ ¢ Profit (a) Interest and other financial charges and income taxes are included in determining segment profit for the GE Capital segment. COMMENTARY: 2014 – 2013 Revenues decreased 1% as a result of the effects of dispositions and organic revenue declines, primarily due to lower ENI, p
Slide 71: 18.1% 12.1% 7.7% 2012 2013 2014
18.1% 12.1% 7.7% 2012 2013 2014
Slide 72: $3.1 $2.0 $1.1 2012 2013 2014
$3.1 $2.0 $1.1 2012 2013 2014
Slide 73: 2014–2013 Commentary
2014 – 2013 COMMENTARY · The increase in the consolidated provision for income taxes was attributable in part to an increase in income taxed at rates above the average tax rate. · The income tax provision also increased due to the non-repeat of the favorable resolution of audit matters in 2013. · Th
Slide 74: 21.3% 2012 2013 2014
21.3% 2012 2013 2014
Slide 75: 2014–2013 Commentary
2014 – 2013 COMMENTARY · The GE provision for income taxes decreased in 2014 primarily because of increased benefits from lower taxed global operations ($0.8 billion). · That decrease was partially offset by the decrease in the benefit of audit resolutions ($0.3 billion) shown below, an increase in
Slide 76: 14.1% 5.3% (8.6)%
14.1% 5.3% (8.6)%
Slide 77: 2014–2013 Commentary
2014 – 2013 COMMENTARY · The increase in GECC provision for income taxes of $0.9 billion was primarily attributable to the absence of the significant tax benefit related to the 2013 sale of a portion of Cembra ($1.0 billion). · The income tax provision also increased due to decreased benefits from l
Slide 78: $17.8 $14.3 $15.2
$17.8 $14.3 $15.2
Slide 79: Slide 79
Slide 80: GE CFOA Explanation
With respect to GE CFOA, we believe that it is useful to supplement our GE Statement of Cash Flows and to examine in a broader context the business activities that provide and require cash. The most significant source of cash in GE CFOA is customer-related activities, the largest of which is collect
Slide 81: $19.7 $19.9
$19.7 $19.9
Slide 82: $22.7 $15.9 $(1.8)
$22.7 $15.9 $(1.8)
Slide 83: Impact of Lower Oil Prices
The recent sharp decline in oil prices and the prospect of lower oil prices has mixed implications for the industries and countries in which we compete. In general, lower oil prices are expected to stimulate growth in oil importing countries while causing negative economic effects in many energy-exp