DOORWAYTOTHE NEXTINDUSTRIALREVOLUTION: THEINDUSTRIALINTERNET
GESo=ware Deutsche Bank Conference BillRuh June3,2015 ForwardCLookingStatements: Thisdocumentcontains forwardclookingstatements thatis,statementsrelatedtofuture,notpast,events.inthiscontext,forwardclookingstatementso=enaddressourexpectedfuturebusinessandfinancialperformanceandfinancial condiuon,ando=encontainwordssuchas expect, anucipate, intend, plan, believe, seek, see, will, would, or target. ForwardClookingstatementsbytheirnatureaddressmaWersthatare,todifferentdegrees,uncertain,such asstatementsaboutourannouncedplantoreducethesizeofourfinancialservicesbusinesses,includingexpectedcashandnonccashchargesassociatedwiththisplan;expectedincome;earningspershare;revenues;organicgrowth;margins; coststructure;restructuringcharges;cashflows;returnoncapital;capitalexpenditures,capitalallocauonorcapitalstructure;dividends;andthesplitbetweenindustrialandgecapitalearnings.forus,parucularuncertainuesthatcouldcause ouractualresultstobemateriallydifferentthanthoseexpressedinourforwardclookingstatementsinclude:obtaining(ortheumingofobtaining)anyrequiredregulatoryreviewsorapprovalsoranyotherconsentsorapprovalsassociatedwith ourannouncedplantoreducethesizeofourfinancialservicesbusinesses;ourabilitytocompleteincrementalassetsalesaspartofthisplaninaumelymanner(oratall)andatthepriceswehaveassumed;changesinlaw,economicand financialcondiuons,includinginterestandexchangeratevolaulity,commodityandequitypricesandthevalueoffinancialassets,includingtheimpactofthesecondiuonsonourabilitytosellorthevalueofincrementalassetstobesoldaspart ofthisplanaswellasotheraspectsofthisplan;theimpactofcondiuonsinthefinancialandcreditmarketsontheavailabilityandcostofgecc sfunding,andgecc sexposuretocounterparues;theimpactofcondiuonsinthehousingmarket andunemploymentratesonthelevelofcommercialandconsumercreditdefaults;pendingandfuturemortgageloanrepurchaseclaimsandotherliugauonclaimsinconnecuonwithwmc,whichmayaffectouresumatesofliability,including possiblelossesumates;ourabilitytomaintainourcurrentcreditraungandtheimpactonourfundingcostsandcompeuuveposiuonifwedonotdoso;theadequacyofourcashflowsandearningsandothercondiuonswhichmayaffectour abilitytopayourquarterlydividendattheplannedlevelortorepurchasesharesatplannedlevels;gecc sabilitytopaydividendstogeattheplannedlevel,whichmaybeaffectedbygecc scashflowsandearnings,financialservicesregulauon andoversight,andotherfactors;ourabilitytoconvertprecordercommitments/winsintoorders;thepricewerealizeonorderssincecommitments/winsarestatedatlistprices;customeracuonsordevelopmentssuchasearlyaircra= reurementsorreducedenergydemandandotherfactorsthatmayaffectthelevelofdemandandfinancialperformanceofthemajorindustriesandcustomersweserve;theeffecuvenessofourriskmanagementframework;theimpactof regulauonandregulatory,invesugauveandlegalproceedingsandlegalcompliancerisks,includingtheimpactoffinancialservicesregulauonandliugauon;adversemarketcondiuons,umingofandabilitytoobtainrequiredbankregulatory approvals,orotherfactorsrelaungtousorsynchronyfinancialthatcouldpreventusfromcompleungthesynchronyfinancialsplitcoffasplanned;ourcapitalallocauonplans,assuchplansmaychangeincludingwithrespecttotheumingand sizeofsharerepurchases,acquisiuons,jointventures,disposiuonsandotherstrategicacuons;oursuccessincompleung,includingobtainingregulatoryapprovalsandthespecificsofanyapprovalsforannouncedtransacuons,suchasthe proposedtransacuonsandallianceswithalstom,appliancesandrealestate,andourabilitytorealizeanucipatedearningsandsavings;oursuccessinintegraungacquiredbusinessesandoperaungjointventures;theimpactofpotenual informauontechnologyordatasecuritybreaches;andtheotherfactorsthataredescribedin RiskFactors inourannualreportonform10ckfortheyearendeddecember31,2014.theseorotheruncertainuesmaycauseouractualfuture resultstobemateriallydifferentthanthoseexpressedinourforwardclookingstatements.wedonotundertaketoupdateourforwardclookingstatements.thisdocumentincludescertainforwardclookingprojectedfinancialinformauonthatis basedoncurrentesumatesandforecasts.actualresultscoulddiffermaterially. ThisdocumentalsocontainsnonCGAAPfinancialinformaUon.ManagementusesthisinformaUoninitsinternalanalysisofresultsandbelievesthatthisinformaUonmaybeinformaUvetoinvestorsingaugingthequalityofourfinancial performance,idenufyingtrendsinourresultsandprovidingmeaningfulperiodctocperiodcomparisons.forareconciliauonofnoncgaapmeasurespresentedinthisdocument,seetheaccompanyingsupplementalinformauonpostedtothe investorrelauonssecuonofourwebsiteatwww.ge.com. Inthisdocument, GE referstotheindustrialbusinessesofthecompanyincludinggecconanequitybasis.gecapitalorgeccreferstothefinancialservicesbusinessesofthecompany. GE(exCGECC) and/or Industrial refertogeexcluding FinancialServices. GE sinvestorrelauonswebsiteatwww.ge.com/investorandourcorporateblogatwww.gereports.com,aswellasge sfacebookpageandtwiweraccounts,containasignificantamountofinformauonaboutge,includingfinancialandother informauonforinvestors.geencouragesinvestorstovisitthesewebsitesfromumetoume,asinformauonisupdatedandnewinformauonisposted.
INDUSTRIALINTERNETDRIVERS PHYSICALAND ANALYTICAL BRILLIANT MACHINES INDUSTRIAL BIGDATA PEOPLE& WORK
GEANDSOFTWARE Established HQinBay Area 250 employees 700 employees Created1.1B inrevenue 1200 employees FirstMinds+ Machines event launched 300C400M ayearinvested 800M PredicUvity orders Released 40apps 2011 2012 2013 2014 2015
GEDIFFERENCE:PHYSICAL+ANALYTICAL ANALYTICS 1200+so>wareengineers GESo>ware + PHYSICS 6300appliedengineers GEAviaLon DATA ConUnuous, accessible OperatorA OperatorB PartTemperature + + = STATISTICS Unlocktrends, segment Temperature Takeoff Threshold Climb Cruise PHYSICS Applyengine experuse CUSTOMERANDGE BENEFITS TimeConCwing Reliabilityand availability Fuelcost Repairandoverhaul
GEFOCUSONINNOVATION AssetPerformanceManagement OperaLonsopLmizaLon SupplyChainIntegraLon Maximize performance with minimal downtime Increased system efficiency across GE & non-ge assets Optimize material & repair cycles Creating value 1 2 3 Increaseso>waresales Be\ercustomeroutcomes+productfeedback CommercializeIndustrialanalyLcsoutsideGE
PREDIX TM PLATFORMISTHEENABLER Cloud-based platform for Industrial Internet Capabilities for Industrial companies Connected assets Industrial data management Monitoring & diagnostics Asset lifecycle Industrial data science Cloud & mobile Predictive maintenance Operations & intelligence Reliability CostreducUon RiskmiUgaUon Profitable growth Increaseavailability andlongerassetlife LoweroperaUngcostswith greaterefficiencies LoweroperaUons andfinancialrisk LoweroperaUons andfinancialrisk IncreaseproducUonfor marketadvancement Valueforinvestors + /IB + Margins + 40 + Predictivity revenue in services backlog + Product feedback + New service offerings
GROWTHINSOFTWARE&SERVICES Metrics 2015E 2017F Revenue ~5B~8B C%PredixCenabled50%70%+ ProducUvity(MM)300500 AssetsUnder ~225~500 Mgmt.(#in000 s) /IB ~3%3C4% LaunchPredixin2H15 AssetPerformance Management Services growth Controls/SW Services growth EnterpriseSW ProducLvity So>ware sales ApplicaLons:Customeroutcomes FieldVantage DigitalWind MovementPlanner SensorEnablement PowerAdvisor DigitalPipeline ImagingCloud AviaLonTOW Margins IndustrialCloudOperaLngSystem
OUTCOMESWITHSOFTWARE+ANALYTICS Software & analytics Intelligent machines Industrial big data User experience Customer Wins Power up 4% increase in power output across 283 wind turbines Movement planner 10% increase in network velocity Intelligent pipeline Improving safety & efficiency on 15k miles of natural gas pipelines Fuel efficiency service 10M of fuel savings with flight efficiency Services
AVIATION:LEADINONCWINGRELIABLITY AppliedanalyLcstodetectenginesatriskof removal Harsh environment Recent successes GE90 120 removalssaved CumulaLvedistress Segment Cycles Abate Nominal environment CFM56 40 Waterwash 7M/yr fuelsavingsatone GE90operator removalssaved
TRANSPORTATION:RAILEFFICIENCY ADVANCEDCONTROLS AutotrainoperaLon! 10%fuelsavings SERVICEROBOTICS ProducLvity,safety! Automatetasks! Toughenvironment SENSORS/ANALYTICS Onasiteoilanalysis! Predictremaininglife! Preventroadfailures AUTOMATEDDECISIONING OpLmizeyardops! Reducedwellupto10%! DepartonLmeupto50% 1MPH=200MinSavings
BRILLIANTFACTORIES 16BrilliantFactoryPilots 25%moreproducUvity 30%lessmfgNPICycleUme Performance&throughputanalysis MachineCellFactorySupplyChain
CYBER SECURITY: OPERATE ASSETS + OPERATIONS SAFELY SECURE&CERTIFY OPERATIONAL INFRASTRUCTURE BRINGOPERATIONAL AVAILBILITY& GOVERNANCE WITHIT PROTECT OT/ITINANAPP FACTORYENTERPRISE ESTABLISHUSERCBASED WORLDFORINDUSTRIAL CLOUDS! Security enhancements delivered through Predix and GE Products! Certify operational products & customer environments! Establish secure & trusted connections from OT to IT & Clouds! Visibility to mixed Information assets! App Factories with Privacy and Security by Design! Data Security and Compliance across the OT-IT Enterprise! Drive Protection from the User to the Machine! Maintain chain of custody for the data communities Trusted & Scalable platform & services for OT, IT, Cloud, App, User GE Confidential. Not for distribution. General Electric Company, 2014..
INDUSTRIALSTRENGTHPARTNERSHIPS Partnerships &Alliances Venture capital M&A/ Strategicmoves Crowdsourcing iniuauves Develop technologyand analyucs applicauons BuildPredix appsfor shipping, manufacturing, andother industries CreaUnghighly securewireless communicauons system Enable intelligent networkingof analyucsand databetween machines Embed standardized interfaces withinthe Predix plaxorm AccelerateGE s abilitytocreate newanalyuc servicesand soluuons
INDUSTRYCONSORTIUMS IIC CFF ODP Intel Open Interconnect Forum 15
DOORWAYTOTHE NEXTINDUSTRIALREVOLUTION: THEINDUSTRIALINTERNET