GE Power JP Morgan Aviation, Transportation & Industrials Conference Power_JPM... · 2003. 9. 16. · Imagination at work GE Power JP Morgan Aviation, Transportation & Industrials

Imagination at work

GE Power JP Morgan Aviation, Transportation & Industrials Conference 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 degrees, uncertain. For details on the uncertainties

that may cause our actual future results to be materially different than those expressed in our forward-looking statements, see http://www.ge.com/investor-relations/disclaimer-caution-concerning-forward-

looking-statements as well as our annual reports on Form 10-K and quarterly reports on Form 10-Q. We do not undertake to update our forward-looking statements. This document also includes certain forward-

looking projected financial information that is based on current estimates and forecasts. Actual results could differ materially.

GE’s Investor Relations website at www.ge.com/investor and our corporate blog at www.gereports.com, as well as GE’s Facebook page and Twitter accounts, contain a significant amount of information about

GE, including financial and other information for investors. GE encourages investors to visit these websites from time to time, as information is updated and new information is posted.

Steve Bolze

March 9th, 2016

http://www.ge.com/investor-relations/disclaimer-caution-concerning-forward-looking-statements













http://www.ge.com/investor

http://www.gereports.com/

© 2016, General Electric Company. All Rights Reserved.

GE POWER We’ll never be satisfied until the entire world has power.


Largest installed base in the world

50% world’s land-based gas

~65k+ digital connected assets

GE Power ~62,000 employees >150 countries

Powering everyone 3


A DIGITAL INDUSTRIAL COMPANY 333,000 people operating in ~180 countries

POWER ENERGY CONNECT.

RENEW. OIL & GAS AVIATION TRANS. HEALTH

CARE APPL.

& LIGHT


4

THE NEW GE POWER ~$30B Revenue/~62,000 employees/>150 countries

GAS POWER SYSTEMS

POWER SERVICES

STEAM POWER SYSTEMS

DISTRIBUTED POWER

Schenectady, NY, USA

Baden, Switzerland

Baden, Switzerland

Jenbach, Austria

GE HITACHI NUCLEAR

Wilmington, NC, USA

WATER & PROCESS

TECHNOLOGY

Trevose, PA, USA

FUNCTIONAL EXPERTISE

OPERATIONAL EXCELLENCE

DIGITAL CAPABILITY


5

6 JRI GLM 01-04-16

ENERGY CONNECTIONS

Electrification, controls & power

conversion technology

POWER Combustion

science & services, installed

base AVIATION Advanced materials,

manufacturing, & engineering productivity

TRANSPORTATION Engine

technology & localization in

growth regions

APPLIANCES AND LIGHTING

LED is gateway to energy efficiency

OIL & GAS Services &

technology— a first-mover in growth regions

HEALTHCARE Diagnostics

technology - a first-mover &

anchor in growth markets

GLOBAL RESEARCH

CENTER

SOFTWARE CENTER OF

EXCELLENCE

CULTURE & SIMPLIFI-CATION

GLOBAL GROWTH ORG

RENEWABLE ENERGY

Sustainable power systems & storages

Driving competitive advantage across our businesses

POWER ENHANCED BY THE GE STORE


6

Largest deal in GE’s history

7 © 2016, General Electric Company. All Rights Reserved.

Transformational investment … Positioning for the next decade

7

Wind

Coal Nuclear

Solar

Hydro

Gas Turbines

Central Power Equipment Orders*

Gas

Engines

10 Year Power Demand

*Excludes 700 GW of non-grid connected capacity additions

Other


ENVIRONMENT

Opportunity to differentiate 8

Slow growth, volatile world …

Pockets of growth, localization wins

Energy demand ~2-3% …

1.2B people without power

Majority still centralized power …

Coal/Steam systems key role

Services & analytics …

New offerings, more productivity

Industry in transition …

COP21 positioning, diverse technology required

POWER INDUSTRY TRANSFORMATION

9

More affordable, reliable & sustainable

Digitization of power grid

Energy access for everyone

Upgrade aging infrastructure

CERAWeek


GE technology, breadth & scale … well positioned to lead the transformation

Balanced portfolio of fuels & tech wins

Software, connected devices, data & cyber security

1B+ people no access, 2B+ unreliable access

Distributed generation & infrastructure investment

OUR STRATEGIC FOCUS

DIFFERENTIATED Products & Services

DIGITAL Capability

GLOBAL Presence/Talent

Improving our competitiveness … adding value for our customers


10

TECHNOLOGY SERVICES DIGITAL ALSTOM COST


11

EDF Bouchain

EDF first fire validating success ... unofficial world record +420MW GT SC output


12


Continues to exceed expectations … new orders for 2017+ in backlog with improving margin rates

Today vs. Launch

✔

✔

Validation Testing

9HA.01 ✔

7HA.01

7HA.02

✔

~24 unit shipments

~$2B revenue

TY positive margin

Quarterly profile

Margin dilutive

2016 Execution

HA PROGRAM ON TRACK

Investment

Volume

Equip. CM

Services CM

IRR


13

GE

CONTRIBUTIONS

Alstom

GAS TURBINE

GAS TURBINE GENERATOR

GRID SOLUTIONS

STEAM TURBINE

STEAM TURBINE GENERATOR

HEAT RECOVERY STEAM GENERATOR

BEST INTEGRATED GAS POWER SYSTEMS

Increasing GE scope 20% 60% of combined cycle power plant … improved performance



POWER SERVICES

Largest installed base

Expanded steam & BOP capability

Other OEM as growth opportunity

Installed base

~1,500GW

Gas & Steam

~1,000

~500

~$50B+ backlog

Technology for growth

$0.2B

$0.1B

$0.1B

$0.1B

2020F Alstom revenue* impact

$0.5B

Upgrades HGT + Other

Software solutions

Steam tail capture

Other OEM

AGP MXL2

DLN F2F

Continued investment for customer productivity Broad, diversified offering for continued growth


*Revenue impact to achieve growth synergy target of $0.1B by 2020

Product cost savings SG&A savings

Simplified features & material selection

Should-cost & cross-functional COEs

Multi-platform component strategy

~$500MM+ cost out over last 4 years

Consolidate structure, functional cost

Opportunity with Alstom

(% of sales) 7HA.02 Heavy Duty GT

Start lower

kW pivots

kW pivots

$/k

W

Time

1st unit cost

10%

30%

$/kw

vs. 7F.05 launch


COST COMPETITIVENESS

16

12%

9%

'11 '15

Alstom

FastWorks and Simplification enabling reinvestment

10%

17

POWER DIGITAL


17

• ~$2B digital revenue growing

double digit in ‘16

• 50%+ software orders growth

Significant value from the marriage of digital and industrial

Great , high-return global Power business

Clear competitive advantages − Technology leadership

− Globalization … world-class & flexible supply chain

− Strong services business … large installed base

− Simplification for speed & cost

Smart investing in a dynamic environment

Positioning GE for long-term shareholder value

$21.5 ++

'15 '16E

++

$4.5B

Revenue

Op profit

ex Alstom

+

+

OP% 20.9% - ex Alstom 22.3%

-

Ad

v. M

fg.

Fa

stW

ork

s M

ete

m

Dig

ita

l S

erv

ice

s A

lsto

m

HA

BUILDING A NEW GE POWER BUSINESS

Alstom


18

http://www.google.com/url?sa=i&rct=j&q=&esrc=s&source=images&cd=&cad=rja&uact=8&ved=0ahUKEwit3P6zzsbKAhUrkYMKHWOGBxsQjRwIBw&url=http://www.technobuffalo.com/2014/05/15/fcc-votes-in-favor-of-fast-lane-net-neutrality-rules/&bvm=bv.112454388,d.amc&psig=AFQjCNFgbjlyJgWTeFoMkfuwFG7xlUmEZg&ust=1453867947883211

GE POWER We’ll never be satisfied until the entire world has power.


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GE Power JP Morgan Aviation, Transportation & Industrials Conference Power_JPM... · 2003. 9. 16. · Imagination at work GE Power JP Morgan Aviation, Transportation & Industrials