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Psg Financial Services — General Electric — Investor Presentation (January 2018)
19 slides from Psg Financial Services's investor presentation, Jan 6, 2018
Slide 1: General Electric Co
General Electric Co 6 January 2018 Copyright © PSG
Slide 2: Contents
Contents 1. Nature of business 2. Recommendation 3. Financial review 4. Divisional review 5. Company guidance 6. Portfolio guidance 2 Copyright © PSG
Slide 3: 01 Nature of business
01 Nature of business 3 Copyright © PSG
Slide 4: Nature of business
Nature of business • General Electric Company is a globally diversified technology and financial services company. • The Company's products and services include: ➢ aircraft engines, power generation, water processing, household appliances, medical imaging, business and consumer financing and industr
Slide 5: 02 Recommendation
02 Recommendation 5 Copyright © PSG
Slide 6: Recommendation
Recommendation • Fairly valued at current levels, we would only recommend it to long-term investors ➢ Time and risk of turnaround strategy ➢ Uncertainty in the remaining of group’s portfolio • Valuable franchises with leadership positions in key global markets • Facing strong headwinds in its power
Slide 7: 03 Financial review
03 Financial review 7 Copyright © PSG
Slide 8: Financial review
Financial review 8 Copyright © PSG
Slide 9: Financial review
Financial review • Revenue – Flat ➢ Revenue growth in oil and gas (up 69% to $5.8bn), healthcare (up 4% to $5.4bn) and aviation stable at $7.2bn ➢ Negatively impacted by a 15% decrease to $9.8bn in the power business • Gross profit eased 23% to $6.7bn ➢ 8% increase in cost of sales to $25.7bn • Oper
Slide 10: 04 Divisions
04 Divisions 10 Copyright © PSG
Slide 11: Divisions
Divisions Divisional Contribution: 2017 Operating Profit Revenue z = Power “eB & ™ Renewable Energy Oy = Oil & Gas ® Aviation Healthcare Transportation ® Lighting 11 Copyright © PSG Divisional Contribution: 2016 Operating Profit Revenue = Power @ Renewable Energy = Oil & Gas = Aviation © Healthcare
Slide 12: Divisions
Divisions • Power: Operating profit down 88% to $260m ➢ Charges to the value of $850m ➢ $450m in cost overruns ➢ Market and volume contributed $550m • Renewable Energy: Operating profit increased 25% (11% on an organic basis) to $203m • Oil and gas: Operating profit increased 2% to $1.8bn ➢ Favourab
Slide 13: 05 Company guidance
05 Company guidance 13 Copyright © PSG
Slide 14: Company guidance
Company guidance • Targeting a $2 billion structural cost-out target in 2018 • Voluntary $6bn debt-funded contribution to company’s principal pension plan • Increase its cash balance in 2018 and exit year with more than $15bn cash • No change to 2018 guidance of $6bn to $7bn for free cash flow • Exp
Slide 15: 06 Portfolio guidance
06 Portfolio guidance 15 Copyright © PSG
Slide 16: Portfolio Guidance
Portfolio Guidance 16 Copyright © PSG
Slide 17: Portfolio Guidance
Portfolio Guidance Share Price: US 1 628c • We believe the share offers value at its current levels. • We recommended exposure of up to 3% due to our concerns around quality and confidence. 17 Copyright © PSG
Slide 18: Disclaimer
Disclaimer The information and content made available through this webinar is provided by PSG as general information about the companies and their products and/or services. PSG does not guarantee the suitability or value of any information or particular investment source. Any information in this web
Slide 19: FAIS Affiliates of the PSG Konsult Group are authorised financial services providers.
FAIS Affiliates of the PSG Konsult Group are authorised financial services providers. Copyright © PSG
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