Slide 1: GE first quarter 2022 performance
GE first quarter 2022 performance Financial results & company highlights April 26, 2022 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'22 snapshot
1Q'22 snapshot RESULTS DYNAMICS • Services recovering, managing through challenges Organic orders growth 13% ◦ Total orders $18.9B, +13%org … services +17%org, equipment +8%org; Aviation & Power up double-digits Organic revenue growth* 1% ◦ Adjusted revenues* $16.3B ... services +15%org* with all se
Slide 3: GE: Taking action today & positioning for tomorrow
GE: Taking action today & positioning for tomorrow NAVIGATING A DYNAMIC ENVIRONMENT GROWTH HIGHLIGHTS Heightened challenges Additional watch items • Inflation • Supply chain constraints FPO • Russia / Ukraine war • China COVID impact • Renewable Energy Photo Credit: Qatar Airways FY'22 outlook… tren
Slide 4: Earnings performance
Earnings performance ($ in billions – except EPS) EPS WALK 1Q'22 y/y y/y 1Q'22 (org.) GAAP Continuing EPS $(0.74) Adjusted revenues* 16.3 0% 1% Less: Insurance 0.16 Less: Non-op pension & other benefits 0.10 Adjusted profit* 0.9 19% 22% Less: MTM & Gains (0.21) Less: Restructuring & other (0.02) Adj
Slide 5: Free cash flow performance
Free cash flow* performance ($ in billions) 1Q'22 y/y 1Q'22 DYNAMICS Net earnings (loss)-a) (0.7) (0.8) • FCF* improvement y/y, up $1.7B ex disc. factoring* with Depreciation & amortization 1.5 0.7 majority as a result of debt reduction actions Operating working capital (1.0) (0.1) • D&A includes $0
Slide 6: 1Q'22 Aviation results
1Q'22 Aviation results ($ in billions) QUARTERLY RESULTS DYNAMICS 7.5 25% • Orders: $7.2B, +32%org with services +36%org & equipment +25%org driven by commercial recovery 6.0 20% • Revenue: $5.6B, +12%org* led by Commercial 4.5 15% Services strength +37%org*; progress in Military; Revenues Margin %
Slide 7: 1Q'22 Healthcare results
1Q'22 Healthcare results ($ in billions) QUARTERLY RESULTS DYNAMICS 5.0 20% • Orders: $4.8B, +8%org; demand strong, driven by 12%org equipment growth & 3%org services growth 4.0 15% • Revenue: $4.4B, +2%org*; continued challenges in supply chain, recent China COVID impact, & Russia/ 3.0 Revenues Ukr
Slide 8: 1Q'22 Renewable Energy results
1Q'22 Renewable Energy results ($ in billions) QUARTERLY RESULTS DYNAMICS 5.0 6% • Orders: $2.8B, (19)%org, equipment (24)%org due to market driven Onshore U.S. decline; Services +5%org 4.0 —% • Revenue: $2.9B, (10)%org* equipment down from lower 3.0 (6)% Onshore U.S. deliveries & Grid selectivity;
Slide 9: 1Q'22 Power results
1Q'22 Power results ($ in billions) QUARTERLY RESULTS DYNAMICS 5.0 8% • Orders: $4.2B, +19%org on strong equipment +70%org with HDGT & Aero up … services +3%org driven by Gas 4.0 5% Services with both CSA & transactional up 3.0 3% • Revenue: $3.5B, (6)%org* due to lower equipment with 3 Revenues Mar
Slide 10: Progress on plan to launch three independent, investment grade, industry-leading companies
Progress on plan to launch three independent, investment grade, industry-leading companies ~$21B ~$18B RENEWABLE ~$33B AVIATION revenue HEALTHCARE revenue ENERGY & revenue-b) POWER Youngest & largest commercial fleet ... At the nexus of most care pathways ... Leading wind technologies, world's most
Slide 11: Wrap-up
Wrap-up CREATING VALUE TODAY & TOMORROW Improving services, Taking action to drive On track to launch three orders & cash, while managing growth, price & cost out independent, investment-grade, through current challenges industry-leading companies BUILDING A WORLD THAT WORKS Future of flight Precisi
Slide 12: Q&A
Q&A 12
Slide 13: Appendix
Appendix 14 Orders $ 15 Orders units 16 Revenues $ 17 22 Outlook 13
Slide 14: Orders - supplemental information
Orders - supplemental information ($ in billions) EQUIPMENT ORDERS SERVICE ORDERS TOTAL ORDERS 1Q'22 y/y (org.) 1Q'22 y/y (org.) 1Q'22 y/y (org.) Aviation $2.5 25% $4.7 36% $7.2 32% Healthcare $2.8 12% $2.1 3% $4.8 8% Renewable Energy $2.2 (24)% $0.6 5% $2.8 (19)% Power $1.4 70% $2.8 3% $4.2 19% Tot
Slide 15: Orders - supplemental information, units
Orders - supplemental information, units (in units) 1Q'22 1Q'21 Aviation Commercial Engines 553 298 LEAP Engines-a) 442 141 Military Engines 19 181 Renewable Energy Wind Turbines-b) 303 728 Wind Turbine Gigawatts-b),-c) 1.1 2.2 Repower units 177 121 Power GE Gas Turbines 15 18 Heavy-Duty Gas Turbine
Slide 16: Revenues - supplemental information
Revenues - supplemental information ($ in billions) EQUIPMENT REVENUES SERVICE REVENUES TOTAL REVENUES 1Q'22 y/y (org.)* 1Q'22 y/y (org.)* 1Q'22 y/y (org.)* Aviation $1.7 (10)% $3.9 26% $5.6 12% Healthcare $2.3 —% $2.1 3% $4.4 2% Renewable Energy $2.2 (22)% $0.7 72% $2.9 (10)% Power $1.0 (20)% $2.5
Slide 17: 2022 Outlook: Initiated on January 25, 2022
2022 Outlook: Initiated on January 25, 2022 KEY VARIABLES Organic revenue growth* HSD Heightened challenges: • Pace of inflation • Impact of Russia/Ukraine war (new since Jan) Adjusted organic • Renewable Energy PTC policy, demand and execution 150+ bps margin expansion* Additional watch items: • Su
Slide 18: Non-GAAP reconciliations
Non-GAAP reconciliations 19 Equipment and services organic revenues by segment 20 Organic revenues by sub segment 21 Free cash flows (FCF) (including and excluding discontinued factoring) 22 Adjusted tax rate 18
Slide 19: Equipment and services organic revenues by segment
Equipment and services organic revenues by segment EQUIPMENT AND SERVICES ORGANIC REVENUES (NON-GAAP) EQUIPMENT SERVICES (Dollars in millions) 1Q'22 1Q'21 V% 1Q'22 1Q'21 V% Aviation revenues (GAAP) $ 1,654 $ 1,847 (10)% $ 3,949 $ 3,145 26 % Less: acquisitions — — — — Less: business dispositions — —
Slide 20: Organic revenues by sub segment
Organic revenues by sub segment ORGANIC REVENUES BY SUB SEGMENT (NON-GAAP) (Dollars in millions) 1Q'22 1Q'21 V% Aviation commercial services revenues (GAAP) $ 2,720 $ 1,988 37 % Less: acquisitions — — Less: business dispositions — — Less: foreign currency effect — — Aviation commercial services orga
Slide 21: Free cash flows (FCF) (including and excluding discontinued factoring)
Free cash flows (FCF) (including and excluding discontinued factoring) FREE CASH FLOWS (FCF) (Non-GAAP) (Dollars in millions) 1Q'22 1Q'21 V$ CFOA (GAAP) $ (535) $ (2,640) $ 2,105 Less: Insurance CFOA (15) 60 (75) CFOA excluding Insurance (Non-GAAP) $ (520) $ (2,699) $ 2,179 -a) Add: gross additions
Slide 22: Adjusted tax rate
Adjusted tax rate ADJUSTED TAX RATE (NON-GAAP) (Dollars in millions) 1Q'22 1Q'21 V% Earnings (loss) from continuing operations before taxes (GAAP) (525) 238 Less: Insurance earnings 227 142 Earnings (loss) from continuing operations before taxes, excluding Insurance (Non-GAAP) $ (752) $ 96 U Less: n
Slide 23: Upcoming calendar
Upcoming calendar Annual Shareholders Meeting May 4, 2022 2Q’22 earnings July 26, 2022 3Q’22 earnings October 25, 2022 4Q’22 earnings January 24, 2023 GE Investor Day March 9, 2023 23