Slide 1: GE fourth quarter & full year 2023 performance
GE fourth quarter & full year 2023 performance Financial results & company highlights January 23, 2024 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: Creating stronger, more valuable businesses ... delivering now
Creating stronger, more valuable businesses ... delivering now Excellent year as GE Aerospace GE Vernova earnings more than tripled & driving growth with delivering meaningfully FCF* grew significantly … robust demand & better results … GE Aerospace & GE Vernova operating improvements … expecting su
Slide 3: GE Aerospace & GE Vernova are ready to go
GE Aerospace & GE Vernova are ready to go Operationally ready ... planning to spin off GE Vernova & launch GE Aerospace in early April 2024 Named future Boards … strong mix of domain expertise, diverse perspectives, & leadership experience Further simplified & strengthened balance sheet … completed
Slide 4: FY 2023 snapshot
FY 2023 snapshot 4Q'23 FY'23 RESULTS Y/Y VARIANCE-a) RESULTS Y/Y VARIANCE-a) Orders $21.7B +7% $79.2B +25% Adjusted revenue* $18.5B +13% $64.6B +17% Adjusted EPS* $1.03 $0.37, 56% $2.81 $2.04, Favorable y/y Free cash flow* $3.0B $(0.4)B, (11)% $5.2B $2.1B, 68% Solid close to the year, driven by robu
Slide 5: GE Aerospace
GE Aerospace ($ in billions) 4Q'23 RESULTS 4Q'23 DYNAMICS-a) • Orders: $10.6B, +10% … led by Commercial Engines & Services • Revenue: $8.5B, +12%* ... +23%* Commercial Services, +1%* Commercial Engines (LEAP units +22%), (1)%* Defense • Profit: $1.6B, +8%* … price & services volume offset inflation
Slide 6: GE Vernova: Renewable Energy
GE Vernova-a): Renewable Energy ($ in billions) 4Q'23 RESULTS 4Q'23 DYNAMICS-b) • Orders: $5.1B, +1% ... strong Onshore equipment & repower offset by Offshore order cancellation • Revenue: $4.2B, +19%* … equipment growth at Offshore, Grid & Onshore North America • Profit: $(0.3)B, +32%* … Grid & Ons
Slide 7: GE Vernova: Power
GE Vernova-a): Power ($ in billions) 4Q'23 RESULTS 4Q'23 DYNAMICS-b) • Orders: $5.7B, +4% … +10% services driven by Gas, partially offset by lower Steam • Revenue: $5.8B, +12%* … double-digit growth driven by Gas and Power Conversion services & equipment • Profit: $0.8B, (4)%* … services strength &
Slide 8: GE Vernova FY 2024 Guidance: as of January 23, 2024
GE Vernova FY 2024 Guidance: as of January 23, 2024 On a standalone basis 2024E DYNAMICS • Gas Power: continued revenue growth with low- Revenue $34B - $35B double-digit margins • Onshore: high-single-digit margins with 2H volume ramp Adj. EBITDA* margin MSD (higher end) • Offshore: slight profit im
Slide 9: GE Aerospace FY 2024 Guidance: as of January 23, 2024
GE Aerospace FY 2024 Guidance: as of January 23, 2024 On a standalone basis 2024E DYNAMICS • Commercial Engines & Services: mid-high-teens Adj. revenue* growth LDD+ revenue growth, including: ◦ Commercial Engines: High-teens growth Operating profit* $6.0B - $6.5B ◦ Commercial Services: Mid-teens gro
Slide 10: The GE teams are excited & ready for what's ahead
The GE teams are excited & ready for what’s ahead We invent the future of flight, We electrify and decarbonize the planet, lift people up and and together, we have the energy to bring them home safely. change the world. GE or JV -a) engines powering Helping generate ~30% 3 out of 4 commercial flight
Slide 11: Q&A: Emirates GE9X order and SunZia wind project
At the Dubai Air Show, Emirates announced an order for 202 GE9X engines and spares plus a long term Q&A service agreement to power its upcoming fleet of Boeing 777X. GE9X is the exclusive engine for the Boeing 777X family of aircraft Secured 2.4 GW order to support Pattern Energy's SunZia wind proje
Slide 12: Appendix
Appendix 13 TY Operating segment results 14 Orders $ 15 Orders and sales units 16 RPO 17 Revenue $ 18 FCF 19 FCF details 12
Slide 13: 2023 Operating segment results
2023 Operating segment results ($ in billions) AEROSPACE RENEWABLES POWER y/y y/y y/y $/% (org.)* $/% (org.)* $/% (org.)* Orders $38.1 22% $22.6 54% $18.5 3% Revenue $31.8 22% $15.0 17% $17.7 7% Segment profit $6.1 25% $(1.4) 45% $1.4 10% Segment margin 19.2% 50bps (9.5)% 920bps 8.2% 20bps FCF* $5.7
Slide 14: Orders - supplemental information
Orders - supplemental information ($ in billions) EQUIPMENT ORDERS SERVICE ORDERS TOTAL ORDERS 4Q'23 y/y FY'23 y/y 4Q'23 y/y FY'23 y/y 4Q'23 y/y FY'23 y/y (org.) (org.) (org.) (org.) (org.) (org.) Aerospace $4.2 (5)% $13.5 18% $6.4 22% $24.6 25% $10.6 10% $38.1 22% Renewable Energy $3.9 (12)% $19.8
Slide 15: Orders and Sales - supplemental information, units
Orders and Sales - supplemental information, units (in units) ORDERS SALES 4Q'23 4Q'22 FY23 FY22 4Q'23 4Q'22 FY23 FY22 Aerospace Aerospace Commercial Engines 1,494 824 3,827 2,127 Commercial Engines 531 476 2,075 1,663 LEAP Engines-a) 1,053 579 2,508 1,515 LEAP Engines-a) 396 324 1,570 1,136 Defense
Slide 16: RPO - supplemental information
RPO - supplemental information ($ in billions) EQUIPMENT RPO SERVICE RPO TOTAL RPO 2023 y/y 2023 y/y 2023 y/y Aerospace $16.2 18% $137.6 13% $153.9 14% Renewable Energy $27.7 38% $15.1 2% $42.8 22% Power $12.3 6% $59.5 4% $71.7 4% Total Company $54.7 24% $212.5 9% $267.2 12% To align with our 10K re
Slide 17: Revenues - supplemental information
Revenues - supplemental information ($ in billions) EQUIPMENT REVENUES SERVICE REVENUES TOTAL REVENUES 4Q'23 y/y FY'23 y/y 4Q'23 y/y FY'23 y/y 4Q'23 y/y FY'23 y/y (org.)* (org.)* (org.)* (org.)* (org.)* (org.)* Aerospace $2.5 1% $9.3 18% $6.0 17% $22.5 23% $8.5 12% $31.8 22% Renewable Energy $3.5 28
Slide 18: Free cash flow performance
Free cash flow* performance ($ in billions) 4Q'23 y/y FY'23 y/y FY'23 DYNAMICS Net earnings (loss)-a) 1.6 (0.2) 9.0 9.8 • FCF* primarily driven by strong adjusted earnings* Depreciation & amortization 0.5 (0.0) 2.1 (0.8) • Delivered robust working capital despite volume growth Operating working capi
Slide 19: 2023 Free cash flow details
2023 Free cash flow* details ($ in billions) 2023 1Q'23 2Q'23 3Q'23 4Q'23 Total -c) Company Aerospace Renewables Power Corporate Net earnings (loss)-a) 6.2 1.1 0.2 1.6 9.0 4.8 (1.6) 1.3 4.5 Depreciation & amortization 0.5 0.5 0.5 0.5 2.1 1.1 0.4 0.5 0.1 Operating working capital (0.4) 0.1 0.4 1.6 1.
Slide 20: Non-GAAP reconciliations
Non-GAAP reconciliations 21 Organic revenues, profit (loss) & profit margin by segment 22 Organic revenues 23 Organic revenues by subsegment 24 Equipment & service organic revenues 25 Equipment & service organic revenues by sub segment 26 Adjusted profit & profit margin 27 Adjusted organic profit &
Slide 21: 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'23 4Q'22 V% 4Q'23 4Q'22 V% 4Q'23 4Q'22 V pts 2023 2022 V% 2023 2022
Slide 22: Organic revenues
Organic revenues ORGANIC REVENUES (NON-GAAP) (Dollars in millions) 4Q'23 4Q'22 V% 2023 2022 V% Total revenues (GAAP) $ 19,423 $ 16,828 15 % $ 67,954 $ 58,100 17 % Less: Insurance revenues 909 783 3,389 2,957 Adjusted revenues (Non-GAAP) $ 18,514 $ 16,045 15 % $ 64,565 $ 55,143 17 % Less: acquisition
Slide 23: Organic revenues by sub segment
Organic revenues by sub segment ORGANIC REVENUES BY SUB SEGMENT (NON-GAAP) (Dollars in millions) 4Q'23 4Q'22 V% 2023 2022 V% Aerospace commercial services revenues (GAAP) $ 4,516 $ 3,680 23 % $ 16,657 $ 12,858 30 % Less: acquisitions and business dispositions — — — — Less: foreign currency effect —
Slide 24: Equipment & service organic revenues
Equipment & service organic revenues EQUIPMENT AND SERVICES ORGANIC REVENUES (NON-GAAP) EQUIPMENT SERVICES (Dollars in millions) 4Q'23 4Q'22 V% 2023 2022 V% 4Q'23 4Q'22 V% 2023 2022 V% Aerospace revenues (GAAP) $ 2,514 $ 2,463 2% $ 9,319 $ 7,842 19 % $ 6,006 $ 5,152 17 % $ 22,451 $ 18,207 23 % Less:
Slide 25: 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'23 4Q'22 V% 2023 2022 V% 4Q'23 4Q'22 V% 2023 2022 V% Gas Power revenues (GAAP) $ 1,546 $ 1,241 25 % $ 4,198 $ 3,460 21 % $ 2,872 $ 2,597 1
Slide 26: Adjusted profit & profit margin
Adjusted profit & profit margin ADJUSTED PROFIT AND PROFIT MARGIN (EXCLUDING CERTAIN ITEMS) (NON-GAAP) (Dollars in millions) 4Q'23 4Q'22 V% 2023 2022 V% Total revenues (GAAP) $ 19,423 $ 16,828 15 % $ 67,954 $ 58,100 17 % Less: Insurance revenues 909 783 3,389 2,957 Adjusted revenues (Non-GAAP) $ 18,
Slide 27: Adjusted organic profit and profit margin
Adjusted organic profit and profit margin ADJUSTED ORGANIC PROFIT (NON-GAAP) (Dollars in millions) 4Q'23 4Q'22 V% 2023 2022 V% Adjusted profit (loss) (Non-GAAP) $ 1,773 $ 1,366 30 % $ 5,662 $ 3,159 79 % Less: acquisitions and business dispositions 13 — 12 (5) Less: foreign currency effect (57) (151)
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'23 4Q'22 V% 2023 2022 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 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) 4Q'23 4Q'22 V% 2023 2022 V% Adjusted profit (loss) (Non-GAAP) $ 1,773 $ 1,366 30 % $ 5,662 $ 3,159 79 % Add: interest and other financial
Slide 30: Adjusted tax rate
Adjusted tax rate ADJUSTED TAX RATE (NON-GAAP) (Dollars in millions) 4Q'23 4Q'22 V% 2023 2022 V% Earnings (loss) from continuing operations before taxes (GAAP) $ 2,009 $ 1,580 27 % $ 10,191 $ (799) Fav Less: Insurance earnings 99 (59) 334 210 Earnings (loss) from continuing operations before taxes,
Slide 31: Free cash flows (FCF)
Free cash flows (FCF) FREE CASH FLOWS (FCF) (NON-GAAP) (Dollars in millions) 4Q'23 4Q'22 V$ 2023 2022 V$ CFOA (GAAP) $ 3,216 $ 3,664 $ (448) $ 5,570 $ 4,043 $ 1,526 Less: Insurance CFOA 67 88 191 136 CFOA excluding Insurance (Non-GAAP) $ 3,149 $ 3,576 $ (427) $ 5,378 $ 3,907 $ 1,471 Add: gross addit
Slide 32: Free cash flows (FCF) by quarter
Free cash flows (FCF) by quarter FREE CASH FLOWS (FCF) (NON-GAAP) (Dollars in millions) 1Q'23 2Q'23 3Q'23 4Q'23 2023 CFOA (GAAP) $ 155 $ 311 $ 1,888 $ 3,216 $ 5,570 Less: CFOA from insurance 6 72 47 67 191 CFOA excluding Insurance (Non-GAAP) $ 149 $ 239 $ 1,842 $ 3,149 $ 5,378 Add: gross additions t
Slide 33: Free cash flows (FCF) by segment
Free cash flows (FCF) by segment 2023 FREE CASH FLOWS (FCF) (Non-GAAP) Renewable (Dollars in millions) Aerospace Energy-b) Power Corporate Total Company CFOA (GAAP) $ 6,494 $ (1,064) $ 2,400 $ (2,261) $ 5,570 Less: Insurance CFOA — — — 191 191 CFOA excluding Insurance (Non-GAAP) $ 6,494 $ (1,064) $
Slide 34: Adjusted Corporate costs
Adjusted Corporate costs CORPORATE REVENUES AND OPERATING PROFIT (COST) (Dollars in millions) 4Q'23 4Q'22 V% 2023 2022 V% GE Digital revenues $ 262 $ 247 $ 958 $ 882 Insurance revenues 909 783 3,389 2,957 Eliminations and other (266) (260) (944) (1,028) Total Corporate revenues $ 905 $ 770 18 % $ 3,
Slide 35: GE - net debt, EBITDA and leverage
GE - net debt, EBITDA and leverage • Market Aligned Approach: Introduced in 4Q’21 to provide another market view of GE’s leverage. • Rating Agency Aligned Approach: Introduced in 2018. Aligned to credit rating methodology. GE Net Debt EBITDA and leverage NET DEBT (NON-GAAP) GE CONSOLIDATED LEVERAGE
Slide 36: Upcoming calendar
Upcoming calendar GE Vernova Investor Day March 6, 2024 GE Aerospace Investor Day March 7, 2024 GE Aerospace 2024 Quarterly Earnings April 23, July 23, October 22 GE Vernova 2024 Quarterly Earnings April 25, July 24, October 23 GE / GE Aerospace Annual Shareholders Meeting May 7, 2024 36