Exploring and Enabling Innovation

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1 General Electric Exploring and Enabling Innovation Peter Thomas GE Transportation GM Sales & Marketing, Global Services & Solutions Jim Taylor GE Transportation Imagination at work. General Electric Company, All Rights Reserved.

2 Notice of Non-Disclosure The information, data, analyses, charts, graphs, and other content (the Content ) of this presentation contain the proprietary information of General Electric Company and its affiliates ( GE ) and shall receive all protections available to GE under intellectual property rights and laws, and that GE shall have all rights to enforce such protections. This Content is provided as is and for informational purposes only, and GE assumes no liability whatsoever for its use. 2

3 Agenda GE Transportation Overview Industry Trends/Challenges RailConnect TM 360 Overview SW Innovations GE / NS Partnership Closing remarks 3

4 About GE Transportation Established over 100 years ago We re proud to be one of the original GE businesses. 4

5 Who is GE Transportation? As a division of General Electric Company, GE Transportation is a global technology leader and supplier to the railroad, mining, marine, stationary power, drilling and services industries. We drive change and progress by rail and across oceans. We go farther and dig deeper, with advanced technology that connects people, data and machines, so resources can be gathered, goods can be transported and economies can thrive. At GE Transportation, we set potential in motion.

6 GE Transportation at a glance HQ: Chicago, Illinois Employees (2014): 12,000+ Revenue (2014): $5.7 billion Global manufacturing capabilities include Australia, Brazil, China, Kazakhstan, South Africa, Turkey & US 20,000 GE locomotives operate in 50 countries Locomotives Services 7 # of Class Is served by GE Transportation ~33 # of automotive systems installed providing automation in loading, unloading, parking assignment, inspection ~67% NA container volume handled by OASIS intermodal solution RailConnect 360 Solutions Mining/Marine/Others For the tenth consecutive year, GE Transportation has been chosen as one of Inbound Logistics magazine s Top 100 Logistics Technology Companies. 6

7 GE s Global Footprint Through operations in the Americas, Asia, Africa, Australia, and Europe and over 65 service sites worldwide, we work to ensure the customer success all over the world. 7

8 Big Iron meets Locomotive Manufacturing Facilities Erie, PA ~5,500 employees Home to Transportation since 1907 Manufactures environmental-friendly Evolution series locomotives Fort Worth, TX 500+ employees Opened in shift operation 1.2 million sq. feet of floor General Electric Company,

9 Big data GE Software COE San Ramon, CA software engineers $1 B investment over 3-years SW COE Building software and analytics to bring together the power of machines, big data, and people.

10 The vision is clear If you went to bed last night as an industrial company, you re going to wake up this morning as a software and analytics company. Jeff Immelt, Minds & Machines, 10/14

11 GE Beliefs Customers Determine Our Success Stay Lean to Go Fast Learn and Adapt to Win Empower and Inspire Each Other Deliver Results in an Uncertain World

12 Industry Trends/Challenges 12

13 Macro Trends => Solution Focus Traffic up but velocity taken a hit carloads highest since RRs challenged to deliver growth & service => Network opt. Carloads (MM) Velocity (mph) Good Operating ratio declining but still below target labor #1 and fuel #2 expenses => Labor productivity & fuel eff Operating Ratio (%) 8 Target: Aging assets ~40K locos & 500K cars > 30 yrs; maint. & safety risk going up. RRs facing shortage of assets => Asset opt. & analytics Train Derailments increased focus on safety of crude oil trains => Safety solutions Good Data & Connectivity more machine data accessibility driven by sensors on assets & tracks. PTC driving asset connectivity => Big data analytics can unlock new value Source: AAR Railroad Statistics Railroads needs SW solutions to unlock further efficiencies and address challenges 13

14 Today s Freight Rail Landscape Rail Supply Chain Execution Terminal Operations Fuel Management Rail Operations Mgmt. Railcar Maintenance Rail Yard Management Crew Planning/ Compliance Wayside Asset Management Locomotive Maintenance Service Design Network Operations/TMS Disconnected systems & processes, poor integration, legacy architecture and technology.high cost, low utilization, capacity constrained 14

15 Industry potential Power of 1% = LOCOMOTIVE PRODUCTIVITY IMPROVEMENT $800 MILLION = CAR DWELL IMPROVEMENT $2.2 BILLION 1 MPH NETWORK VELOCITY IMPROVEMENT = = $2.5 BILLION FUEL EFFICIENCY IMPROVEMENT $140 MILLION 15

16 GE s vision set potential in motion Connected Systems Assets Networks, Yards Terminals & Operations Plants & facilities + Data Analytics + Predict performance issues Deliver information to make business process run faster Mobile & Accessible Operations visibility Real-time data delivery Mobile execution Performance monitoring Connecting the transportation landscape 16

17 A CONNECTED SUITE OF SOLUTIONS THAT PROVIDES DATA-DRIVEN INSIGHTS TO DRIVE KEY CUSTOMER OUTCOMES FOCUS AREAS ASSET, NETWORK, OPERATIONS, SUPPLY CHAIN OUTCOMES UTILIZATION, VELOCITY, DWELL, PRODUCTIVITY, FUEL EFFICIENCY 17

18 RailConnect 360 Key Solutions Overview ASSET OPTIMIZATION OPERATIONS OPTIMIZATION Expert-on-Alert Locomotive RM&D RailDOCS Wayside asset mgmt. RailConnect TMS, RMS, car hire Trip Optimizer Fuel saving solution ExpressYard Railcar repair billing, maint. Locotrol Distributed power NETWORK OPTIMIZATION SUPPLY CHAIN OPTIMIZATION Movement Planner Network planning Rail Track & Trace provides visibility Yard Planner Classification yard planning OASIS Intermodal terminal ops system Yard Management shipper yard mgmt. Transload Management controls inventory Demurrage Management reduces demurrage costs 18

19 RailConnect 360 Installed Base Locomotive RM&D 15,000 locomotives connected globally health status, performance monitoring RailDOCS 115,000 wayside assets; Largest database of its kind in NA ExpressYard 425 railcar repair shops; 68% of repair market Movement Planner Deployed on a major Class 1 railroad & an international railroad Yard Planner Deployed on a major Class 1 classification yard OASIS 100+ terminals; 30M gate moves & lifts per year; 67% of all NA container volume RailConnect 8M carloads per year; 95% of 3 rd party TMS market Trip Optimizer Deployed on locomotives on major railroads including Class 1s Locotrol DP ShipperConnect Installed on 15,000 locomotives globally Connectivity to >1,500 shippers End-to-end rail execution 19

20 Select Customers Class 1s, Short lines, international RRs, railroads, shippers 20

21 SW Solutions / Innovations

22 Locomotive Remote Monitoring & Diagnostics Real-time monitoring of locomotive health & performance Data transmission to monitoring & diagnostic center Root cause analysis & repair recommendations GE Expert-on-Alert monitors 15K locos globally Increased asset reliability, availability; reduced train delays, efficient shop operations GE Internal - For internal distribution only. 22

23 Real-time Network Planning & Optimization Launch Customer: Norfolk Southern Train Origination Train Operation Train Termination Rail Yard Rail Yard REAL-TIME YARD PLANNING Detailed schedule for movement of each car Visibility to current car inventory Predictibility on yard capacity/performance Yard Planner END-TO-END NETWORK PLANNING Movement Planner REAL-TIME TRAFFIC PLANNING & OPTIMIZATION One plan for entire network 8-12 hour planning horizon Automatic conflict resolution Optimization based on business objectives Delivering 10-15% improvement in velocity, 5% reduction in dwell GE Internal - For internal distribution only. 23

24 Fuel efficiency through better train operation Optimal speed is calculated by considering train make-up & route topography Automatic control of throttle and dynamic brakes Dynamic adjustments based on real-time monitoring Trip Optimizer is deployed on ~4000 locomotives EPA Certified Delivering 3-17% fuel savings depending on train and territory GE Internal - For internal distribution only. 24

25 RailConnect Next Gen Transportation Mgmt. What s New! New user-friendly interface Intuitive menus and pick lists Time saving key functions Custom quick links to regularly used tools Automatic report generation and distribution More than 450+ railroads rely on RailConnect every day to manage their operations Automate operations, increase productivity, reduce costs GE Internal - For internal distribution only. 25

26 Advanced Analytics Going beyond BI RAILCONNECT ADVANCED ANALYTICS Provides powerful, real-time business intelligence beyond traditional BI Types of Reporting Carload & Traffic Reporting Revenue Audit Interline Accounting Freight Rating & Invoicing Month-end Accounting Switching & Haulage Incidental Charges Variance Analysis Performance Management Financial Revenue Reporting Revenue by Customer Revenue Ton Miles RMAA-Revenue Management Advanced Analytics Designed to improve accounting, support decision making, streamline audits etc. TMAA-Transportation Management Advanced Analytics Supports & improves operational decision making CMAA-Car Management Advanced Analytics Supports & improves management of car accounting Greater productivity; better, faster decisions; reporting everyone can use GE Internal - For internal distribution only. 26

27 mcrew Mobile TMS Extending the power of TMS from office to yard and beyond.. Crews Capture Events on the mobile device Integrated w/tms for Near Real-Time updates Touch Screen functionality minimizes or eliminates data entry Supplement or Alternative to AEI Cost-Effective Communications/Equipment Future enhancement Device-agnostic solution delivery Manage, record, report train movements in the field when and where the work occurs GE Internal - For internal distribution only. 27

28 ShipperConnect Platform Optimizing Supply Chain Key ShipperConnect applications Rail Track & Trace Yard Management Better shipment planning, scheduling & forecasting Transload Management Demurrage Management Increases throughput in shipper yards by 30% GE Internal - For internal distribution only. 28

29 GE / NS Partnership

30 Carriers RAMPS- Smart Terminal Operation System Work Order Sequencing Shipment & Yard Mgmt. Analytics & Mobility Train/railcar Management In/Outbound schedule ETA/TTD forecast Volume forecast Loading/unloading Plan Route assignments Truck Management ETA forecast & planning Volume forecast Loading/unloading Plan In/Out Gate processing Smart Planning Assets Crew Vin Handler Movement Planning & optimization Work order assignment Process tracking & automation Vin Inspector Vin Scanning Inspection info Process tracking Rail track pad Railcar position Pad utilization planning RAMP management Railcar Utilization planning Pad assignments Route assignments Yard space/ inventory Management Area/zone management Loading lanes management Bay process and management 30

31 RAMPS-Automate smart decisions Automated Smart Planning Volume forecasting with railcar assignments Yard Management & load line planning Loading/unloading planning Advanced plan execution Work Order management Assets tracking & Inventory Mgmt. In/Out Gate process Advanced Usability Predix platform & Cloud based service User Experience oriented design Data Analytics & Mobility Smart real time planning Manage Exception 31

32 Powered by Predix Align to Predix roadmap and adopt Predix technologies to accelerate development and deliver new values: Predix Core Predix platform by leveraging new technologies now in each iteration Predix Experience Building on user case studies and standard controls Big Data Allow the application to scale to meet the need of real-time optimization and analytics. GE Restricted & Confidential

33 UX Driven Approach PERSONAS UI DESIGN VIN JOURNEY MAP

34

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