Ge Vernova Inc. · NYSE:GEV
Ge Vernova — Investor Day (March 2024)
83 slides from Ge Vernova's investor day presentation, Mar 6, 2024
Slide 1: 2024 Investor Day
2024 INVESTOR DAY © 2024 GE Vernova and/or its affiliates. All rights reserved. 1
Slide 2: Caution concerning forward-looking statements
Caution concerning forward-looking statements: This presentation contains "forward-looking statements" – that is, statements related to future events that by their nature address matters that are, to different degrees, uncertain. These forward-looking statements might be identified by words, and var
Slide 3: 2024 Investor Day Agenda
2024 INVESTOR DAY AGENDA 7:00AM BREAKFAST & TECHNOLOGY SHOWCASE 8:00AM Welcome Michael Lapides Safety Moment Rob Cummings Opening Remarks Larry Culp & Steve Angel Overview & Strategy Scott Strazik Power Maví Zingoni Wind Vic Abate Q&A Michael Lapides (moderator), Scott Strazik, Maví Zingoni, Vic Ab
Slide 4: Today at Center 415 site safety
Site safety TODAY AT CENTER 415 In the event of an emergency: • Please exit the building through same doors you entered • Follow routes to emergency rally point If you are unsure about anything, please ask. © 2024 GE Vernova and/or its affiliates. All rights reserved. 4
Slide 5: Safety Moment
SAFETY MOMENT Rob Cummings GE Vernova Global Environmental, Health and Safety (EHS) Leader © 2024 GE Vernova and/or its affiliates. All rights reserved. 5
Slide 6: Safeguarding the Future
SAFEGUARDING We live a safety culture that delivers results: THE FUTURE • 90% reduction in severe injuries over 5 years • 45% reduction in injury & illness rate since 2018 We live a safety culture that is: • In line with our vision to be Enabled by Innovation fatality free across all operations Supp
Slide 7: Opening Remarks
OPENING REMARKS Larry Culp GE Chairman & CEO & GE Aerospace CEO Steve Angel GE Board member & GE Vernova Non-Executive Chair © 2024 GE Vernova and/or its affiliates. All rights reserved. 7
Slide 8: Board of Directors with strong domain expertise
BOARD OF DIRECTORS WITH STRONG DOMAIN EXPERTISE N C N S N Steve Angel Scott Strazik Nicholas Akins Arnold Donald Non-Executive Chair CEO, GE Vernova Former Chairman and CEO Former President and Former CEO of Linde plc of American Electric Power CEO of Carnival A S A A S C A C Matthew Harris Jesus Ma
Slide 9: Overview & Strategy
OVERVIEW & STRATEGY Scott Strazik GE Vernova CEO © 2024 GE Vernova and/or its affiliates. All rights reserved. 9
Slide 10: Purpose-Built to Electrify and Decarbonize
Purpose-Built to Electrify and Decarbonize Serving the vital energy Executing with Delivering disciplined growth to transition market with sustainability, innovation drive margin expansion, higher multi-decade growth & lean at our core free cash flow* & effective capital allocation © 2024 GE Vernova
Slide 11: The energy transition – the next supercycle
The energy transition – the next supercycle Supercycles of the past shaped today’s economy Energy transition Significant energy transition spend Internet/Software expected in coming Globalization decades-a)… Industrialization Accounts for +20% Value of trade as a of GDP growth in Electrification mat
Slide 12: Increased electrification and decarbonization offer major opportunities
Increased electrification and decarbonization offer major opportunities Global generation to grow ELECTRIFICATION DECARBONIZATION ~2x >800 TWh of electricity used for data centers-a), e.g. as (TWh/y) ~800 GW 59K of coal capacity outside China and India … large as at least Sweden or potentially Germa
Slide 13: Large and growing sector with multi-decade tailwinds
Large and growing sector with multi-decade tailwinds IEA Global power sector and end-use average annual capital investment $2.4T $3.4T $435B IEA announced IEA announced GE Vernova’s 2030 pledges pledges served segment -a) GROWING TO $1.4T $2.0T $2.4T $3.4T 3.12d $265B 2016-2022 2023-2030 2031-2040 I
Slide 14: Electrifying and decarbonizing the world
Electrifying and decarbonizing the world GE VERNOVA TECHNOLOGIES GENERATE TRANSFER ORCHESTRATE CONVERT STORE POWER WIND ELECTRIFICATION Gas, Steam, Hydro, Nuclear Onshore Wind, Offshore Wind, LM Wind Grid Solutions, Power Conversion, Solar & Power Storage Solutions, Electrification Software $110B se
Slide 15: Unique scope and scale needed to lead energy transition
Unique scope and scale needed to lead energy transition Power Strong, growing • Services ~$73B backlog-a) (81% services) • Productivity free cash flow* ~$17B revenue • Decarbonization technologies Wind Significant margin • Leading quality ~$27B backlog-a) (49% services) • Workhorse products expansio
Slide 16: Delivering innovative technologies to create a more sustainable electric power system
Delivering innovative technologies to create a more sustainable electric power system SUSTAINABILITY FRAMEWORK Catalyze access to more secure, Invent, deploy, and service sustainable, reliable and affordable technology to help decarbonize and electricity to help drive global electrify the world econ
Slide 17: Proven and trusted long-term customer relationships
Proven and trusted long-term customer relationships 40% Our 20 largest customers generate ~40% of 9/10 of our top-10 customers in both the US and electricity in their respective Europe transact with 6 or more geographies-a) of our GE Vernova businesses Serving the most impactful electricity provider
Slide 18: Building on over 140 years of innovation
Building on over 140 years of innovation COMMERCIALIZING Small Modular Carbon Capture and GridOS® BREAKTHROUGH Reactors (SMRs) Sequestration TECHNOLOGIES Hydrogen Enabled Haliade-X platform High Voltage Direct Gas Turbines Current (HVDC) Investing ~$1B in annual R&D to generate long-term value © 202
Slide 19: Experienced Leadership Team
EXPERIENCED Scott Strazik LEADERSHIP TEAM GE Vernova CEO CORPORATE FUNCTIONS BUSINESS SEGMENTS BUSINESS ENABLING FUNCTIONS POWER WIND Jessica Uhl Ken Parks Maví Zingoni Vic Abate Pablo Koziner Kristin Carvell President Chief Financial Officer CEO CEO Chief Commercial Chief Communications Officer Off
Slide 20: GE Vernova lean operating system
GE Vernova lean operating system APPLYING SAFETY, QUALITY, DELIVERY & COST EVERY DAY SAFETY Drive culture of addressing potential severe events 45% reduction in injury and illness rate across GE Vernova since 2018 QUALITY Eliminating defects & waste starting in the factory floor 9 TO 5 reduction of
Slide 21: Improved discipline and execution across GE Vernova
Improved discipline and execution across GE Vernova Before 2023 turnaround Negative GAS FCF* Significant Embedding lean deeper into POWER (2018 trough) the business (SQDC) FCF* Negative GRID FCF* Positive FCF* SOLUTIONS (2019 trough) Driving better selectivity, Negative ONSHORE FCF* price and risk m
Slide 22: Our $116B backlog enables profitable growth
Our $116B backlog-a) enables profitable growth Year-end 2023 GE Vernova backlog Growing backlog at better margins ~$75B • Equipment backlog grew >$8B y/y with average margins-b) in backlog increasing in 2023 • Margins-b) up >10 points in Onshore & ~5 points ~$40B in Electrification Power • Electrifi
Slide 23: GE Vernova financial outlook
GE Vernova financial outlook 2024 guidance 2025 guidance Outlook by 2028 $34 – 35B MSD MSD Revenue Organic revenue growth* Organic revenue growth*-a) High-end MSD Low-end HSD 10% Adj. EBITDA margin* Adj. EBITDA margin* Adj. EBITDA margin* $0.7 – 1.1B $1.2 – 1.8B 90-110% FCF* FCF* FCF* conversion-b)
Slide 24: Energy transition is a growing, exciting market
Energy transition is a growing, exciting market 1 Power generates significant, growing FCF* 2 Wind expected to experience multiple years of margin expansion 3 Electrification is a high growth segment with improving profitability 4 Lean operating system with sustainability & innovation at our core 5
Slide 25: Power: Strong, Growing Free Cash Flow
POWER STRONG, GROWING FREE CASH FLOW* Maví Zingoni Power CEO © 2024 GE Vernova and/or its affiliates. All rights reserved. 25 * Non-GAAP Financial Measure
Slide 26: GE Vernova's Power business enables the energy transition
GE Vernova’s Power business enables the energy transition ~3x Gas Nuclear Electricity generation growth through 2050 SMR technology ~60GW >800GW Design, commercialize, scale and execute Service & provide fuel for the 2x installed base vs. nearest competitor installed base Meeting baseload & peaking
Slide 27: Producing strong and reliable FCF now
Producing strong and reliable FCF* now Our playbook delivered Power’s significant FCF* generation significant business transformation • Selectivity: disciplined underwriting leading to higher margins $1B • Services: expand services portfolio & offerings on a growing installed base 2021 2022 2023 202
Slide 28: Gas Power's services providing durable and recurring revenue
Gas Power’s services providing durable and recurring revenue $43B heavy duty gas turbine (HDGT) backlog for Upgrades improve plant performance and enhance service agreements-a) competitiveness driving ~$2B revenue / year • 70%+ backlog with 10+ years remaining on HDGT Efficiency & output upgrade del
Slide 29: Adding more HA gas turbines to the installed base grows future services backlog
Adding more HA-a) gas turbines to the installed base grows future services backlog-b) Growing HA installed base & service billings Fastest growing H class fleet … driving high utilization HA annual service billings $1.0B+ ~$0.7B 2.3 million Total operating hours at the end of ’23 Largest HA class fl
Slide 30: Lean progress accelerating at Gas Power
Lean progress accelerating at Gas Power Delivering value to customers with reduced outage times Improving manufacturing with lean lines Increasing number of Live Outages For every manufacturing hour that switches to a “lean line”: % of total outages ~30% ~30% ~45% ~45% >60% >60% 3x 50% Decrease in D
Slide 31: Decarbonizing through multiple innovative solutions
Decarbonizing through multiple innovative solutions Coal to gas switching Hydrogen Carbon Capture Small Modular Reactor (SMR) 25M tons of annual CO2 reduction Reached 8.5 million operating 3 Direct Air Capture (DAC) hub 8 early works agreements to be enabled from gas units shipped in ‘23 hours on hy
Slide 32: Nuclear SMR is a meaningful growth opportunity
Nuclear SMR is a meaningful growth opportunity Our launch project Priority regions for SMR growth (GW) 2035: ~5 2050: ~18 2035: ~20 2050: ~86 Planned BWRX-300 by Ontario Power Generation at Darlington 2035: ~12 ST 1 framework agreement for three more SMR units North American commercial contract for
Slide 33: Power: expanding profitability in 2024
Power: expanding profitability in 2024 Power 2023 2024E Dynamics • Solid revenue growth driven by higher Gas MSD organic services and equipment Revenue $17.4B growth* • Greater productivity, services volume & price more than offset inflation & investments in decarbonization technologies EBITDA $1.7B
Slide 34: Wind: Significant Margin Expansion in Sight
WIND SIGNIFICANT MARGIN EXPANSION IN SIGHT Vic Abate Wind CEO © 2024 GE Vernova and/or its affiliates. All rights reserved. 34
Slide 35: Wind: a generational build-out to electrify and decarbonize
Wind: a generational build-out to electrify and decarbonize 6x growth needed in wind output Wind TWhrs-a) % of Total Generation 16,800 Net Zero THE WORLD NEEDS WIND required to achieve net zero; 12,700 Announced Pledges 1 out of 4 electrons by 2040 ~25% 9,300 Stated policies HIGH-TECH INFRASTRUCTURE
Slide 36: Workhorse products… core to sustained success
Workhorse products… core to sustained success Reliability at scale Focused product leadership Reduced variants, more reliable fleets ... MW CONSTRAINED Capacity factor leader 3 workhorse products U.S. manufactured 3.6MW-154m Repeatable operations & scale … ~55K installed base, ~4B operating hours LA
Slide 37: Leading with quality in Onshore
Leading with quality in Onshore Driving workhorse reliability Innovating for enhanced quality at scale 2.8MW-127m first-year availability • Design: increase key component strength to 98% extend useful life 96% • Daily management rigor delivering ~2pts of higher • Validation: system & availability su
Slide 38: Lean underpins Onshore improvement
Lean underpins Onshore improvement Enhanced capability Structural productivity Headcount Fixed cost as % of revenues Reduced layers to bring customers closer to the decision makers (40)% (6)points Refocused R&D … fewer design centers, bigger communities of practice Repositioned factory footprint to
Slide 39: Onshore margin expansion secured in backlog
Onshore margin expansion secured in backlog Demand visibility improving Favorable mix shift % Planned U.S. units in agreement with customers-a) $B opening equipment backlog-b) Entering 2022 Entering 2024 $9.3 ROW $6.5 2x US 2022E 2023F 2024E 2025F 2023 2024 % contracted >50% visibility for 2025 10pt
Slide 40: Focused on improving Offshore results
Focused on improving Offshore results Delivering existing Offshore backlog-a) Key actions Year-end equipment backlog ($B) • Executing ~$4B backlog … building >4 million ~$4B operating hours experience by end of 2026 • Deploying lean to reduce nacelle cycle time by >40% & product cost, while improvin
Slide 41: Applying lean and our playbook to Offshore
Applying lean and our playbook to Offshore Onshore Offshore >75% Wind backlog-a) <25% Wind backlog-a) LEAD WITH QUALITY Strategic priorities WORKHORSE PRODUCTS In process FOCUSED In process & LEAN Resetting Offshore… quality, price & structural costs © 2024 GE Vernova and/or its affiliates.
Slide 42: Wind: significant margin expansion in sight
Wind: significant margin expansion in sight Wind 2023 2024E Dynamics • Significant y/y EBITDA uplift in 2024 from price, productivity & cost savings Revenue $9.8B Flat*-a) • Higher US volume starting in 2H’24 leading to HSD Onshore EBITDA margins • Lower but more profitable International volume EBIT
Slide 43: Q&A
Q&A Scott Strazik, Maví Zingoni, Vic Abate & Ken Parks Moderated by Michael Lapides © 2024 GE Vernova and/or its affiliates. All rights reserved. 43
Slide 44: Break
BREAK © 2024 GE Vernova and/or its affiliates. All rights reserved. 44
Slide 45: Electrification: Profitable Growth Accelerating
ELECTRIFICATION PROFITABLE GROWTH ACCELERATING Philippe Piron Electrification Systems CEO Scott Reese Electrification Software CEO © 2024 GE Vernova and/or its affiliates. All rights reserved. 45
Slide 46: Electrification vital to decarbonize the world
Electrification vital to decarbonize the world Investment in electrification is accelerating Serving the key levers to reach Net Zero-a) Addressable market for GE Vernova Electrification >50GT CO2 eq. emissions to be reduced by 2050 > 2x ~$175B Electrification Decarbonize power generation • Renewabl
Slide 47: From point of generation to point of consumption
From point of generation to point of consumption GE VERNOVA’S ELECTRIFICATION FOCUS Growth drivers Energy transition and security • Integrate renewables • Decarbonize end-uses • National security asset POWER GRIDS POWER-TO-X Grid stability and flexibility TRANSMISSION DISTRIBUTION CONVERSION • Reduc
Slide 48: Delivering mission-critical solutions for decarbonization
Delivering mission-critical solutions for decarbonization LEADING-EDGE Bulk power transfer Solutions to stabilize the grid More sustainable switchgears and breakers POWER GRID TECHNOLOGIES for grid expansion, stability and sustainability High-voltage direct current Flexible AC transmission systems S
Slide 49: Investing to create incremental value
Investing to create incremental value Reducing lead-times Expanding Capacity Growing Services Electrification services revenue ($B) Continued growth 1.8 1.6 Systems Software 2022 2023 2024E Deploying lean in our US circuit Investing in our UK HVDC transformer Investments & lean deployment breaker fa
Slide 50: Our Electrification Software business accelerates the energy transition
Our Electrification Software business accelerates the energy transition • Refocused on mission-critical software Electrification • Industry-leading products driving growth Software today • Profitable in 2023, following significant cost reductions POWER GEN, OIL & GAS GRID SOFTWARE MANUFACTURING Impr
Slide 51: Increasing grid complexity requires software
Increasing grid complexity requires software YESTERDAY Centralized and predictable TODAY Constantly changing, unprecedented complexity C O N V ENTIO NAL G EN ER A TIO N R EN EW A BL ES C O N V ENTIO NAL T R A N SMISSIO N G EN ER A TIO N G EN ER A TIO N T R A N SMISSIO N DI STR IBUTED R EN EW A BL ES
Slide 52: GE Vernova leading grid modernization with GridOS
GE Vernova leading grid modernization with GridOS® GE Vernova grid software: First portfolio designed to break down data silos and orchestrate a dynamic grid end-to-end in real-time 75%+ of Fortune 500 utilities Customer & Partner Applications 40% of global transmission line length-a) GridOS Applica
Slide 53: Electrification Software is delivering profitable growth
Electrification Software is delivering profitable growth By 2025, we expect to be: Our long-term objectives: $1B+ Software business Leader in mission-critical software for energy transition • Best-in-class software business measured by profitable growth and margin (Rule of 40) 10% Revenue growth CAG
Slide 54: Demonstrating operational and financial improvement
Demonstrating operational and financial improvement Our turnaround playbook Electrification financials Revenue $B EBITDA margin % 8 10% Strong market demand 6 5% Better price and underwriting selectivity 4 0% Productivity and cost-out 2 -5% Decentralized organization 0 -10% 2021 2022 2023 Lean deplo
Slide 55: Building a healthy, multi-year backlog
Building a healthy, multi-year backlog-a) Electrification equipment backlog Electrification equipment backlog conversion (% of YE’23 backlog) Margin-b) + 1 pts +5 pts ~50% ~$13B ~30% ~20% ~$6B ~$5B 2021 2022 2023 2024E 2025F 2026+ • Growing backlog with accretive margins • ~50% of backlog to convert
Slide 56: Electrification: profitable growth accelerating
Electrification: profitable growth accelerating Electrification 2023 2024E Dynamics • Delivering growth across Electrification to meet LDD organic higher demand Revenue $6.4B growth* • Increasing backlog-a) at higher margins led by Grid Solutions • Volume and price driving margin expansion, more EBI
Slide 57: Innovation & Growth Panel Discussion
INNOVATION & GROWTH PANEL DISCUSSION Jessica Uhl GE Vernova President © 2024 GE Vernova and/or its affiliates. All rights reserved. 57
Slide 58: Innovation and Growth panel discussion
Innovation and Growth panel discussion Jessica Uhl Pablo Koziner Roger Martella Dan Garceau President Chief Commercial Officer Chief Sustainability Officer Chief Supply Chain Officer Oversees Technology, Leads enterprise Aligns GE Vernova’s Drives supply chain Innovation and Growth commercial strate
Slide 59: Financials & Outlook
FINANCIALS & OUTLOOK Ken Parks GE Vernova CFO © 2024 GE Vernova and/or its affiliates. All rights reserved. 59
Slide 60: Our financial strategy
Our financial strategy Disciplined, selective top line growth Driving adj. EBITDA* growth and continued margin expansion Delivering strong FCF* conversion Investment grade rating, continued innovation & strategic capital deployment © 2024 GE Vernova and/or its affiliates. All rights reserved. 60 * N
Slide 61: Building financial momentum to deliver for investors
Building financial momentum to deliver for investors Revenue Adjusted EBITDA margin* Free cash flow* $B % adj. EBITDA* $B ($0.4)B $0.6B MSD org. growth* 34.0 – 35.0 Low-end 33.2 9.0 HSD High-end 1.2 – 1.8 6.0 MSD 29.7 0.7 - 1.1 1.7 0.1 2022 2023 2024E 2025F (1.4) (0.6) -a) -a) -a) -a) -b) -b) 2022 2
Slide 62: Significant EBITDA growth
Significant EBITDA* growth GE Vernova adj. EBITDA* ($B) Key levers firmly in our control High-end MSD1.9 margin 0.8 (0.2) 0.6 2023 Standalone costs 2023 Pro forma-a) Price/(Inflation) Volume Productivity Cost out 2024E Key levers in our control to drive adj. EBITDA* improvement © 2024 GE Vernova and
Slide 63: Segment financial performance
Segment financial performance Revenue EBITDA $B $B 17.4 MSD*-a) +~100bps*-b) 1.7 16.1 1.7 POWER 2022A 2023A 2024E 2022A 2023A 2024E 9.8 Flat*-a) 8.9 WIND 2022A 2023A 2024E (1.0) Approaching profitability (1.7) 2022A 2023A 2024E 6.4 LDD*-a) 5.1 MSD margin 0.2 ELECTRIFICATION 2022A 2023A 2024E (0.2) 2
Slide 64: Increasing recurring revenue from services
Increasing recurring revenue from services Services backlog-a) ($B) Services revenue ($B) Continued growth ~73 ~75 15.0 ~71 13.8 Electrification Wind Power 2021 2022 2023 2022 2023 2024E 5x 2023 services revenue coverage ~45% of total GE Vernova revenue Services generate healthy margins & strong fre
Slide 65: Improving our cost structure
Improving our cost structure Adjusted G&A expenses-a) Key levers $B 0.2 3.3 • Using lean to simplify processes 3.1 2.8 • Leveraging support functions • Outsourcing certain ‘non-core’ activities • Optimizing IT systems • Reducing legal entities 2023 Standalone 2023 Pro Forma-b) By 2028 Costs ~$500M i
Slide 66: Substantial FCF improvement
Substantial FCF* improvement Consistent FCF* growth Balanced capex supporting growth ($B) Capex spend ($B) 2023 to 2025 dynamics Key drivers • Continued adj. EBITDA* growth D&A • Working capital remains a FCF* source range 1.2 – 1.8 • Taxes a headwind going forward ~0.8 ~0.7 0.7 – 1.1 0.1 -a) -a)) 2
Slide 67: Driving further FCF growth with lean
Driving further FCF* growth with lean Leveraging lean to improve services billings Meaningful inventory opportunity Gas Power Example-a) – % billed within 30 days Inventory Balance ($B) ~8.4 ~8.0 75% ~7.4 Finished goods-b) 27% Raw materials 2022 2023 2021 2021 2022 2022 2023 • Avg. bills outstanding
Slide 68: Commitment to investment grade credit rating
Commitment to investment grade credit rating Expected Day 1 Capital Structure Capital Allocation Framework $4.2B CASH-a) $1.9B net pension/benefit deficit-b) Capital Inorganic Organic return to growth Investments $0.1B DEBT INVESTMENT shareholders optionality -c) ~$3.0B expected GRADE RATING credit
Slide 69: Outlook by 2028
Outlook by 2028 Revenue growth*-a) Adj. EBITDA margin* FCF* conversion-b) MSD 10% 90-110% • Disciplined equipment • Positive price & volume • Strong earnings quality growth on rising demand • Productivity with lean • Improving working capital • Continued services growth velocity • G&A cost reduction
Slide 70: Q&A
Q&A Scott Strazik, Philippe Piron, Scott Reese & Ken Parks Moderated by Michael Lapides © 2024 GE Vernova and/or its affiliates. All rights reserved. 70
Slide 71: Closing Remarks
CLOSING REMARKS Scott Strazik GE Vernova CEO © 2024 GE Vernova and/or its affiliates. All rights reserved. 71
Slide 72: At the center of this industry's transformation
At the center of this industry’s transformation STRONG MACRO TRENDS ROBUST ORGANIC INVESTMENT • Inflation Reduction Act (U.S.) • Artificial intelligence build out ~$1B ~250 ~36K R&D Advanced Patents & • Green Deal • Industrial spend p.a. Research Team Patent Industrial Plan (E.U.) electrification Em
Slide 73: Energy transition is a growing, exciting market
Energy transition is a growing, exciting market 1 Power generates significant, growing FCF* 2 Wind expected to experience multiple years of margin expansion 3 Electrification is a high growth segment with improving profitability 4 Lean Operating System with sustainability & innovation at our core 5
Slide 74: Appendix
APPENDIX Non-GAAP reconciliations: • Power – Organic EBITDA margin expansion • Electrification – Organic Revenues • Adjusted EBITDA and Adjusted EBITDA Margin • Pro Forma Adjusted EBITDA • 2028 Adjusted EBITDA margin • Adjusted General & Administrative (G&A) expense • Free cash flow and Free cash fl
Slide 75: Power – Organic EBITDA margin expansion
Power – Organic EBITDA margin expansion* Power Organic EBITDA margin expansion* We cannot provide a reconciliation of the differences between non-GAAP expectations and the corresponding GAAP measure for Organic margin expansion* in the 2024 outlook without unreasonable effort due to the uncertainty
Slide 76: Electrification – Organic Revenues
Electrification – Organic Revenues* Organic Revenues* For the years ended December 31, ($ in millions) 2023 2022 2023/2022 V% 2022 2021 2022/2021 V% Electrification (GAAP) $ 6,378 $ 5,076 26% $ 5,076 $ 5,292 (4)% Less: Acquisitions 2 - 2 - Less: Business dispositions - - - - Less: Foreign currency e
Slide 77: Adjusted EBITDA & Adjusted EBITDA margin
Adjusted EBITDA & Adjusted EBITDA margin* Adjusted EBITDA* and Adjusted EBITDA margin* For the years ended December 31, ($ in millions) 2023 2022 Net income (loss) (GAAP) $ (474) $ (2,722) Add: Restructuring and other charges(a) 433 288 Add: Steam Power asset sale impairment(b) - 824 Add: Purchases
Slide 78: Pro Forma Adjusted EBITDA
Pro Forma Adjusted EBITDA* Pro Forma Adjusted EBITDA* and Pro Forma Adjusted EBITDA margin* 2023 2023 For the year ended December 31, 2023 ($ in millions) Pro Forma Reported Net income (loss) (GAAP) $ (576) $ (474) Add: Restructuring and other charges(a) 433 433 Add: Purchases and sales of business
Slide 79: Adjusted EBITDA margin
Adjusted EBITDA margin* Adjusted EBITDA margin* We cannot provide a reconciliation of the differences between non-GAAP expectations and the corresponding GAAP measure for Adjusted EBITDA margin* in the 2028 outlook without unreasonable effort due to the uncertainty of the costs and timing associated
Slide 80: Adjusted General & Administrative (G&A) expense
Adjusted General & Administrative (G&A) expense* Adjusted General & Administrative (G&A) expense* For the years ended December 31, ($ in millions) 2023 Selling, General & Administrative expense (GAAP) $ 4,845 Less: Selling & Marketing expense 1,155 Less: Restructuring and other charges(a) 265 Less:
Slide 81: Free cash flow and Free cash flow conversion
Free cash flow* Free cash flow* For the years ended December 31, ($ in millions) 2022 2023 2024E 2025E Cash from (used for) operating activities (GAAP) $ (114) $ 1,186 $ 1,500-1,900 $ 2,000-2,600 Add: gross additions to property, plant and equipment and internal-use software (513) (744) (800) (800)
Slide 82: Pro Forma Free cash flow
Pro Forma Free cash flow* Pro Forma Free cash flow* 2023 2023 For the year ended December 31, 2023 ($ in millions) Pro Forma Reported Cash from (used for) operating activities (GAAP) $ 1,186 $ 1,186 Add: gross additions to property, plant and equipment and internal-use software (744) (744) Add: impa
Slide 83: GE Vernova
GE VERNOVA