Ge Investor Communications Brochure 2q2008

7/30/2019 Ge Investor Communications Brochure 2q2008

http://slidepdf.com/reader/full/ge-investor-communications-brochure-2q2008 1/4

0.0

0.5

1.0

1.5

2.0

2.5

YTD’08YTD’07’07’06’05

0.0

0.2

0.4

0.6

0.8

1.0

1.2

YTD’08YTD’07’07’06’05

0

50

100

150

200

YTD’08YTD’07’07’06’05

Financial Update

Investor

Inormation

Ticker Symbol GE

Exchange NYSE

P/E ~12

Dividend Yield 4.5%

Market Cap $275B

Shares O/S ~10B

Perormance Highlights“Led by double-digit segment prot growth in our industrial

businesses and a strong relative perormance in our nancial

services businesses, we delivered a solid quarter in a tough

environment. Inrastructure continued to drive the Company’s

perormance with 24% segment prot growth. Our nancial

services businesses are executing well in a tough market. We

have a sound and dierentiated business model, consisting

o high quality, senior secured credit; diversication; and deep

domain expertise. We are advantaged by a sel-unded Triple-A.

Healthcare had a much improved quarter with 8% segment

prot growth. NBC Universal had its seventh straight quarter o

segment prot growth driven by strong Cable perormance.”— Je Immelt, Chairman & CEO

’08 indicated dividend increased to $1.24;32nd consecutive annual increase

Updated

July 11, 2008

2Q’08

Earnings Per Share from Continuing Operations

(in dollars)16% AAGR Down 4%

Growth (V%)

Orders +8%•

Revenues +11%•

Assets +17%•

EPS (V%)

Flat at $.54 (Cont. Ops)•

(2)% to $.51 (Net Earnings)•

Returns

ROTC at 17.6%•

Margins

Segment op. prot (40) bps. to 16.4%•

Cash

Cash generation (CFOA)•

– YTD cash fow o $9.3B– Industrial cash fow o $7.3B, +5%

Key perormance metrics – 2Q’08

Dividends Paid Per Share (in dollars)

13% AAGR Up 11%

Consolidated Revenues (Continuing Operations) (in billions)

12% AAGR Up 9%

Solid performance in tough environment



Today’s interdependent global economy iscreating new opportunities or growth —and the corresponding challenges o man-aging that growth responsibly. In bothinstances, GE’s size is an advantage. GE isleveraging its size to make a big impact in

the ollowing areas:Ecomagination — accelerating the devel-opment, marketing and visibility o productsthat will help our customers meet pressingenvironmental issues across a variety o industries. We have also set ambitioustargets or reducing the emission o green-house gases and increasing the energyeciency o our operations.

– “Investing and Delivering on ecomagina-tion” — The company’s third report onhow GE is delivering on its environmentalcommitments can be viewed and down-loaded on line at http://ge.ecomagination.

com/site/index.html#media/2007ecoreport

Emerging Markets — a vital part o GE’sgrowth strategy in the years ahead — but tobe successul we must integrate citizenshiprom day one, solve big needs and createvalue or local communities.

– Nearly 60% o our growth will come romdeveloping countries in the next decade.

– Emerging markets will represent ~25% o global talent by 2010.

Compliance & Governance — our compli-ance systems have brought all our businessleaders into the process — not just ournance and legal stas. Maintaining highstandards o compliance and governancesupports a high perormance, high integrity

culture.– Named Top Corporate Perormer - GlobalGovernance by One World Trust.

Environment, Health & Safety — ourEHS management system is designed toestablish global standards and to promotebusiness leadership, responsibility andaccountability or perormance. GE doesthis by providing our employees with theinormation and training they need tomeet GE’s EHS expectations and maintainthe monitoring systems to ensure we meetthese expectations everywhere we oper-ate, including emerging markets.

“Investing in a sustainable uture” — Thecompany’s third citizenship report on howGE uses its capabilities to help address someo the world’s most pressing needs can beviewed and downloaded online atwww.ge.com/citizenship.

Solving Big Needs

Our

Contributions

GE invested morethan $1 billion oncleaner technologyR&D or 2007,drawing closer toits pledge to invest$1.5 billion annuallyon ecomaginationSM R&D by 2010

The GE amilycontributed $215+million and gavemore than onemillion volunteerhours worldwide.

GE plans to reduceits global water useby 20% by 2012.

Every year, wecomplete morethan 1,000 serviceprojects.

A Good Company

“It’s up to us to use our platorm to be a

good citizen, because not only is it a nicething to do, it’s a business imperative.” — Je Immelt

Recognitions

#1 Global MostAdmired Company 1998, 1999, 2000, 2001,2002, 2005, 2006, 2007Fortune Magazine

2007 World’s MostEthical CompanyEthisphere Magazine

World’s MostRespected Companies2005, 2006, 2007Barron’s

2007 #1 Company forLeadersFortune Magazine

World’s MostRespected Company 1998, 1999, 2000, 2001,2002, 2003, 2004, 2005Financial Times

100 Best Companiesfor Working Mothers 2004, 2005, 2006, 2007Working Mother

Hero of theEnvironment Time Magazine

Energy Star Partner of the Year 2004, 2005, 2006,2007, 2008 EPA/DOE

Top CorporatePerformer – GlobalGovernance One World Trust

2007 KLD GlobalClimate 100 Indexor environmentaltechnology leadership

#1 US ClimateConscious BrandThe Climate Group

2005, 2006, 2007, 2008IR Magazine Award Grand Prix or bestoverall investorrelations

2006, 2007, 2008IR Magazine Award Best CorporateGovernance

2006 Top 40 DiverseCompanies Black EnterpriseMagazine

2006 OSHA LeadershipAwardor commitment tohealth and saety

Triple-A Rated1 o 5 US industrialcompanies with aAAA-rated balancesheet

2004, 2005, 2006, 2007, 2008

Dow Jones Sustainability Index

or global citizenship



GE Infrastructure

GE Inrastructure is one o the world’s leading

providers o undamental technologies to

developed, developing and emerging

countries, including aircrat engine, energy,

oil and gas, rail and water process technolo-

gies and services. GE Inrastructure also

provides aviation and energy leasing and

nancing services.

GE Healthcare

GE Healthcare is a leader in the develop-

ment o a new paradigm o patient care. GE

Healthcare’s expertise in medical imaging

and inormation technologies, medical

diagnostics, patient monitoring systems,

disease research, drug discovery and

biopharmaceutical manuacturing technolo-

gies is dedicated to detecting disease earlier

and helping physicians tailor treatment or

individual patients.

GE Money

GE Money is a leading provider o credit

services to consumers, retailers and auto

dealers in countries around the world,

oering nancial products such as private

label credit cards, personal loans, bank

cards, auto loans and leases, mortgages,

corporate travel and purchasing cards, debt

consolidation and home equity loans and

credit insurance.

GE Commercial Finance

GE Commercial Finance oers an array o

services and products aimed at enabling

business worldwide to grow. GE Commercial

Finance provides loans, operating leases,

nancing programs, and other services.

NBC Universal

NBC Universal is one o the world’s leadingmedia and entertainment companies in the

development, production and marketing o

entertainment, news and inormation to a

global audience.

GE Industrial Products

GE Industrial provides a broad range o

products and services throughout the world,

including appliances, lighting and industrialproducts; actory automation systems;

security and sensors technology, and monitor

equipment or large inrastructure projects

Our Businesses

Growth

Initiatives

GE’s globalrevenue grew 24%to $25B in 2Q’08

GE’s servicesrevenue grew 19%to $9.5B in 2Q’08

Revenue fromecomaginationexpected to growrom $6B in 2004 to~$25B in 2010



“ Our business undamentals remain strong. We have deep equipment backlog and growing, high marginservice revenues. We have ample cash fow to reinvest in the businesses, pay an attractive dividend andexecute a stock buyback program. We are positioned or long-term growth. For the third quarter 2008,we are orecasting EPS rom continuing operations o $.50–.54, up 0–8% over comparable 2007 earnings,

and rearming guidance o $2.20–2.30, up 0–5% or the ull year.”

— Je Immelt, Chairman & CEO

Contact

Information

General Electric

Company

3135 Easton Turnpike

Faireld, Connecticut

06828

GE Investor

Communications

T 203.373.2468

F 203.373.2071

www.ge.com/investor

2Q’08 Segment Perormance (Continuing Operations)

Revenue Segment Profit -a)

($ in millions) $ V% $ V%

Inrastructure $17,552 26% $3,174 24%

Commercial Finance 9,259 14 1,390 7

GE Money 6,629 6 1,056 (9)

Healthcare 4,491 11 747 8

NBC Universal 3,882 7 909 1

Industrial Products 4,542 2 300 (32)

Corp. eliminations, taxes & in’l charges 536 (2,182)

TOTAL COMPANY $46,891 11% $5,394 (4)%

(a- Financial Service businesses on an after-tax basis

2008 Earnings Guidance

EPS $2.20–2.30 0–5%

This document contains “orward-looking statements” — that is, statements related to uture, not past , events. In this context,orward-looking statements oten address our expected uture business and inancial perormance, and oten contain words suchas “expects,” “anticipates,” “intends,” “plans,” “believes,” “seeks,” or “will.” Forward-looking statements by their nature addressmatters that are, to dierent degrees, uncertain. For us, particular uncertainties which could adversely or positively aect ouruture results include: the behavior o inancial markets, including luctuations in interest rates and commodity prices; strategicactions, including dispositions; uture integration o acquired businesses; uture inancial perormance o major industries whichwe serve, including, without limitation, the air and rail transportation, energy generation, media, real estate and healthcareindustries; unanticipated loss development in our insurance businesses; and numerous other matters o national, regional andglobal scale, including those o a political, economic, business, competitive and regulatory nature. These uncertainties may causeour actual uture results to be materially dierent than those expressed in our orward-looking statements. We do not undertaketo update our orward-looking statements.

Total Company

3Q’08 Outlook

($ in billions – except EPS)

$ V%

Revenues ~$49 15%Earnings $5.0–5.4 (2)–6%

EPS $.50–.54 0–8%

Continuing Ops basis

20080043-6

Documents

Ge Investor Communications Brochure 2q2008