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July 6, 2012 To the Investment Community, On June 5, Steve Bolze, senior vice president, Power & Water, Energy presented at the J.P. Morgan Diversified Industries Conference in New York. Mr. Bolze highlighted Power & Water’s current position in the market as a ~$44B business with diverse solutions. Specifically, he illustrated the business’ portfolio transformation from a power generation-centric business to a broad and deep portfolio of solutions, including Wind, Solar, and Gas Turbines. Mr. Bolze also emphasized Power & Water’s standing as a leading technology and products manufacturer with a large installed base, a strong services business, and a world-class flexible supply chain. Please click here to access the presentation materials. On June 15, Mark Hutchinson, CEO of China, presented at the J.P. Morgan China Industrials Conference in Shanghai. Mr. Hutchinson highlighted GE’s unique position within China, where we have been in the market since 1906, particularly our significant opportunities in infrastructure and healthcare. He also highlighted our successful, strategic partnerships with national SOE champions, including Avic, State Grid, Shenhua, which expand our footprint in China and globally while protecting our intellectual property. Mr. Hutchinson emphasized that we continue to optimize GE’s global capabilities gives us a strategic advantage locally — through R&D centers, supply chain excellence, and leadership development. On June 19, Shane Fitzsimons, CFO of GE Global Growth & Operations, presented at the Morgan Stanley China Conference in Shanghai. At the conference, Mr. Fitzsimons explained GE’s global growth equation; specifically, the benefits we are experiencing as a direct result of the Global Growth organization. Mr. Fitzsimons noted that we now see new business earlier, we are faster and more responsive to local needs, and we have enhanced portfolio profitability. In addition, we continue to connect capital to customers better than ever before, we’re simplifying the GE cost structure, and we now boast an expansive local leadership pipeline. June 2012 Investor Update Business Highlights Industrial Businesses page 3 GE Capital page 6 Other Company News page 7 Investor Events page 7 Contact Trevor A. Schauenberg Vice President Corporate Investor Communications 3135 Easton Turnpike Fairfield, CT 06828 USA T 203 373 2424 F 203 373 2071 [email protected]

June 2012 Investor Update - General Electric...tapped Clarke Energy, a distributor of GE’s Jenbacher gas engines, to install turnkey combined heat and power (CHP) plants at its Guinness

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Page 1: June 2012 Investor Update - General Electric...tapped Clarke Energy, a distributor of GE’s Jenbacher gas engines, to install turnkey combined heat and power (CHP) plants at its Guinness

July 6, 2012

To the Investment Community,

On June 5, Steve Bolze, senior vice president, Power & Water, Energy presented at the J.P. Morgan Diversified Industries Conference in New York. Mr. Bolze highlighted Power & Water’s current position in the market as a ~$44B business with diverse solutions. Specifically, he illustrated the business’ portfolio transformation from a power generation-centric business to a broad and deep portfolio of solutions, including Wind, Solar, and Gas Turbines. Mr. Bolze also emphasized Power & Water’s standing as a leading technology and products manufacturer with a large installed base, a strong services business, and a world-class flexible supply chain. Please click here to access the presentation materials.

On June 15, Mark Hutchinson, CEO of China, presented at the J.P. Morgan China Industrials Conference in Shanghai. Mr. Hutchinson highlighted GE’s unique position within China, where we have been in the market since 1906, particularly our significant opportunities in infrastructure and healthcare. He also highlighted our successful, strategic partnerships with national SOE champions, including Avic, State Grid, Shenhua, which expand our footprint in China and globally while protecting our intellectual property. Mr. Hutchinson emphasized that we continue to optimize GE’s global capabilities gives us a strategic advantage locally — through R&D centers, supply chain excellence, and leadership development.

On June 19, Shane Fitzsimons, CFO of GE Global Growth & Operations, presented at the Morgan Stanley China Conference in Shanghai. At the conference, Mr. Fitzsimons explained GE’s global growth equation; specifically, the benefits we are experiencing as a direct result of the Global Growth organization. Mr. Fitzsimons noted that we now see new business earlier, we are faster and more responsive to local needs, and we have enhanced portfolio profitability. In addition, we continue to connect capital to customers better than ever before, we’re simplifying the GE cost structure, and we now boast an expansive local leadership pipeline.

June 2012 Investor Update

Business HighlightsIndustrial Businesses page 3

GE Capital page 6

Other Company News page 7

Investor Events page 7

ContactTrevor A. Schauenberg Vice President Corporate Investor Communications

3135 Easton Turnpike Fairfield, CT 06828 USA

T 203 373 2424 F 203 373 2071 [email protected]

Page 2: June 2012 Investor Update - General Electric...tapped Clarke Energy, a distributor of GE’s Jenbacher gas engines, to install turnkey combined heat and power (CHP) plants at its Guinness

On June 28, GE released its 2011 ecomagination progress report, announcing that the initiative has reached more than $105 billion in sales and services since its launch in 2005. In 2011, GE generated $21 billion in revenues from ecomagination products and services and invested more than $2 billion in research and development, continuing progress toward the Company’s goal of a $10 billion cumulative investment from 2010 to 2015. In addition, thirty four new products and services were added to the ecomagination portfolio in 2011, including the FlexEfficiency 50 Combined Cycle Power Plant, The Waukesha 275GL+ natural gas engine, and GE’s RailEdge Movement Planner software. In addition, reinforcing our commitment to open innovation, to date, GE and our venture capital partners have invested $134 million in GE’s ecomagination Challenge winner, all of which have the potential to transform markets and radically increase resource efficiency. Please click here to access the report.

As always, for all presentations, news and other helpful information please visit our investor website at http://www.ge.com/investors.

Please see “GE Reports” to keep informed about the latest company developments. We will update it daily to share information and our perspectives on GE activities around the world. Please visit our website at http://www.gereports.com/.

Regards,

Investor Update continued

Results are preliminary and unaudited.

Caution Concerning Forward-Looking Statements:

This document contains “forward-looking statements” — that is, statements related to future, not past, events. In this context, forward-looking statements often address our expected future business and financial performance and financial condition, and often contain words such as “expect,” “anticipate,” “intend,” “plan,” “believe,” “seek,” “see,” or “will.” Forward-looking statements by their nature address matters that are, to different degrees, uncertain. For us, particular uncertainties that could cause our actual results to be materially different than those expressed in our forward-looking statements include: current economic and financial conditions, including volatility in interest and exchange rates, commodity and equity prices and the value of financial assets; potential market disruptions or other impacts arising in the United States or Europe from developments in the European sovereign debt situation; the impact of conditions in the financial and credit markets on the availability and cost of General Electric Capital Corporation’s (GECC) funding and on our ability to reduce GECC’s asset levels as planned; the impact of conditions in the housing market and unemployment rates on the level of commercial and consumer credit defaults; changes in Japanese consumer behavior that may affect our estimates of liability for excess interest refund claims (Grey Zone); pending and threatened litigation against WMC, including increased activity by securitization trustees; our ability to maintain our current credit rating and the impact on our funding costs and competitive position if we do not do so; the adequacy of our cash flow and earnings and other conditions which may affect our ability to pay our quarterly dividend at the planned level; GECC’s ability to pay dividends to GE at the planned level; the level of demand and financial performance of the major industries we serve, including, without limitation, air and rail transportation, energy generation, real estate and healthcare; the impact of regulation and regulatory, investigative and legal proceedings and legal compliance risks, including the impact of financial services regulation; strategic actions, including acquisitions, joint ventures and dispositions and our success in completing announced transactions and integrating acquired businesses; the impact of potential information technology or data security breaches; and numerous other matters of national, regional and global scale, including those of a political, economic, business and competitive nature. These uncertainties may cause our actual future results to be materially different than those expressed in our forward-looking statements. We do not undertake to update our forward-looking statements.

“This document may also contain non-GAAP financial information. Management uses this information in its internal analysis of results and believes that this information may be informative to investors in gauging the quality of our financial performance, identifying trends in our results and providing meaningful period-to-period comparisons. For a reconciliation of non-GAAP measures presented in this document, see the accompanying supplemental information posted to the investor relations section of our website at www.ge.com.”

“In this document, “GE” refers to the Industrial businesses of the Company including GECC on an equity basis. “GE (ex. GECC)” and/or “Industrial” refer to GE excluding Financial Services.”

Page 3: June 2012 Investor Update - General Electric...tapped Clarke Energy, a distributor of GE’s Jenbacher gas engines, to install turnkey combined heat and power (CHP) plants at its Guinness

ENErGy INfrASTruCTurE• GE and REP Holding (REPH), a Russian power engineering company, have signed a contract to assemble an additional

28 GE MS 5002E gas turbines at REPHs Nevsky Zavod manufacturing facilities. The deal is the third to be covered under a technology transfer and licensing agreement signed by GE Oil & Gas and REPH in March 2008. A contract for the assembly of the first 19 units was signed in 2008, and a second contract for 10 units was signed last year. “Our agreement with GE underscores the importance of using highly efficient and proven technologies in the modernization of Russia’s energy infrastructure,” said Igor Starinkov, president of REPH. Read the press release.

• U.K.-based Diageo plc, a leading global alcohol beverage company, has once again tapped Clarke Energy, a distributor of GE’s Jenbacher gas engines, to install turnkey combined heat and power (CHP) plants at its Guinness breweries in Ogba and Benin City, Nigeria, to lower their energy costs and increase production. The two, 3.3-megawatt (MW) CHP plants will each feature a natural gas-powered Jenbacher J620 gas engine and a backup diesel engine from a different supplier. The new Ogba and Benin City projects represent the fifth and sixth Jenbacher CHP engines that Diageo has installed since 2008 at its Guinness Nigeria plc brewing operations to help lower energy costs and help keep pace with the steady growth in demand for its products. Read the press release.

• With the global steel industry working to reduce the environmental impact of its production activities, GE is supplying Japan steel producer JFE Steel Co. Ltd. with a heavy duty Frame 9E gas turbine system for an innovative steel gas-to-energy recovery project at the company’s East Japan Iron Works in Chiba City, located in the Keiyo (Tokyo-Chiba) Industrial Park east of Tokyo. Engineering, procurement and construction contractor Toshiba Plant Systems & Services Corp. will install GE’s 9E gas turbine as well as a GE-designed 9A5 generator and associated equipment at JFEs new 150-megawatt (MW), multiple fuel, combined-cycle power plant. The sprawling steel mill operation produces about 8 million tons of crude steel annually, according to JFE. Read the press release.

• Helping to meet the growing need for rapid power generation worldwide, GE introduced its PowerXpand™ Portfolio, which features several GE technologies designed for customers looking to address temporary power needs or in search of permanent power “in a pinch.” The portfolio, which consists of GE’s TM2500 and TM2500+ mobile aeroderivative gas turbine generator sets, the Jenbacher J320 containerized gas engine generator set and the V250/V228 diesel engine generator sets, delivers rapid power that is reliable, whenever and wherever it is needed. “With our global network of partners, flexible and responsive supply chain and world-class execution, we are able to meet the needs of PowerXpand customers in nearly any environment quickly,” said Darryl Wilson, president and CEO—Aeroderivative gas turbines for GE Power & Water. Read the press release.

• GE Oil & Gas will supply its Integrated Compressor Line (ICL) technology to Polish oil and gas company PGNiG Technologie for the extension of the Husow underground gas storage station. This project will mark the first installation of GE’s ecomagination-qualified, emissions-reducing ICL technology in Poland and in Eastern Europe. The continued acceptance of our ICL technology demonstrates that our customers are eager for low emissions, cost-effective solutions for their gas storage and transportation challenges,” said Prady Iyyanki, vice president of GE and president, Turbomachinery business of GE Oil & Gas. Read the press release.

• GE announced that Swedish energy developer Triventus Wind Power AB will use GE’s proven wind turbine technology to power a new 27.5-megawatt (MW) wind farm project being built near Falkenberg on Sweden’s west coast. GE will supply Triventus with 10 of its 2.75-103 wind turbines. When it begins operating, the wind farm will generate enough renewable electricity to power the equivalent of 7,500 houses in Sweden. Given Sweden’s need to expand the role of wind energy, GE’s wind turbine technology has a proven track record of reliability and efficiency to ensure our project is successfully implemented on schedule,” said Linda Pålsson, MD Triventus Wind Power. Read the press release.

Industrial Businesses

June 2012 Investor Update 3

Page 4: June 2012 Investor Update - General Electric...tapped Clarke Energy, a distributor of GE’s Jenbacher gas engines, to install turnkey combined heat and power (CHP) plants at its Guinness

• GE and OJSC Rosneft, a leader in Russia’s petroleum industry, signed a memorandum of understanding (MOU) that lays the foundation for the two companies to jointly evaluate and develop commercial opportunities in oil and gas exploration and production in the Russian Federation. The MOU was signed by John Krenicki, GE vice chairman and president and CEO of GE Energy; and Igor Sechin, president of Rosneft. The agreement calls for a strategic, cooperative relationship that would (1) leverage GE Oil & Gas technologies to help Rosneft improve efficiency and yields in its oil and gas exploration and recovery operations, and (2) explore opportunities to jointly develop, manufacture and sell equipment for use in Russia’s oil and gas industry. Read the press release.

AvIATION• NetJets Inc. has signed a 15-year OnPointSMSM solution agreement with GE Aviation for the maintenance, repair and

overhaul of its new CF34 engine fleet, which was part of last week’s order that included 25 firm CF34-3B-powered Bombardier Challenger 605 aircraft with options for up to an additional 50 aircraft. The engine order and OnPoint solution agreement are valued at more $400 million over the life of the agreement. “NetJets’ order for CF34-powered Bombardier Challenger 605 jets follows an order last year for 20 firm Passport-powered Bombardier Global 7000 and Global 8000 jets,” said Brad Mottier, vice president and general manager of GE Aviation’s Business & General Aviation organization. Read the press release.

• GE Aviation’s H80 turboprop engine has received type certification from the Brazilian Civil Aviation agency (ANAC) and the Argentine aviation authority (Administracion Nacional de Aviacion Civil). These certifications follow type certifications for the H80 engine from the European Aviation Safety Agency (EASA) and the U.S. Federal Aviation Administration. “The H80 engine is generating interest from many parts of the world, and we plan to pursue additional type certificates in other countries, including Canada, China and Russia,” said Paul Theofan, president and managing executive of GE Aviation’s Business and General Aviation Turboprops. Read the press release.

HEAlTHCArE• GE Healthcare unveiled the GE Blueprint for low dose, a comprehensive program that helps

healthcare providers integrate CT technologies, education and process improvements, and data analysis to reduce patient radiation dose from Computed Tomography (CT) by up to 50 percent. GE Healthcare is committing to work with health systems and physicians to develop system-specific solutions — comprehensive “blueprints” that can help providers achieve low-dose, high-definition diagnostic capabilities. The program is designed to help health systems nationwide positively impact patient safety. Read the press release.

• GE announced a $7.5 million investment in Australian-based Nanosonics Limited — a leader in the development of innovative technology for infection control — to further develop and distribute Trophon EPR, an ultrasound transducer disinfecting system. The investment is being made through the GE healthymagination Fund, which makes investments in healthcare technology companies. “Nanosonics has built an attractive business with an extraordinary product,” said Michael Ackland, president and CEO of GE Healthcare Australia & New Zealand. “We believe the continued collaboration with Nanosonics will help serve our healthcare customers better, complementing GE’s suite of ultrasound technologies, software and services.” Read the press release.

• At the Society of Nuclear Medicine (SNM) 2012, GE Healthcare showcased Q.Suite on both the new Discovery PET/CT 710 and Discovery PET/CT 610 products. Q.Suite is a collection of next-generation capabilities designed to further quantitative PET by generating more consistent Standardized Uptake Value (SUV) readings — enabling clinicians to assess treatment response accurately, allowing oncologists to modify treatment strategies without waiting for physical results. Effective therapy may help improve the patient’s quality of life and overall outcome as well as reduce the cost burden of ineffective treatment technologies. Developed in collaboration with leading researchers, Q.Suite represents the next step in GE Healthcare’s vision to enable effective quantitative PET imaging. Read the press release.

June 2012 Investor Update 4

Industrial Businesses continued

ENErGy INfrASTruCTurE (CONT.)

Page 5: June 2012 Investor Update - General Electric...tapped Clarke Energy, a distributor of GE’s Jenbacher gas engines, to install turnkey combined heat and power (CHP) plants at its Guinness

TrANSpOrTATION• RMI, a GE Transportation company and leading provider of transportation management software and analytics to the

railroad industry, has been selected as a 2012 Top 100 Logistics Technology Company by Inbound Logistics magazine for the seventh consecutive year. The annual list recognizes 100 logistics IT companies that are leading the way in logistics excellence. Felecia Stratton, editor for Inbound Logistics magazine said, “RMI consistently provides the kinds of technology solutions our readers need to successfully manage their global transportation challenges, positioning them for growth as well as enhancing their ability to compete…RMI continues to be flexible and responsive, anticipating customers’ evolving needs.” Read the press release.

HOmE & BuSINESS SOluTIONS• The good news just keeps getting better for GE Appliances and the Louisville community. In

anticipation of exceptional sales of its new line of French door bottom-freezer refrigerators, GE will add 380 second shift production employees later this summer and has increased the number of new production employees working in the facility from the recently announced 600 to a total of 772 employees. In addition to the 772 new production positions, GE Appliances added about 100 salaried positions to support the new plant and product. “Bottom-freezer refrigerators are the fastest growing configuration of refrigerators on the market today, so we had contingency plans for a two-shift operation,” said Paul Surowiec, refrigeration product general manager at GE Appliances. Read the press release.

• Double ovens are hot — so hot they are now the fastest-growing high-end cooking upgrade in the home. New double-oven product sales in the U.S. increased by one-third in 2011. GE, which leads the market, now offers eight high-performance double-oven models, including the industry’s largest capacity and the only electric slide-in double oven. “More Americans cook on GE products today than any other brand,” says Melanie Cook, general manager for GE cooking products. “We’re proud of our heritage and will continue to launch new cooking innovations for years to come.” Read the press release.

• Whether it’s a rural road or a major metropolitan highway, GE Lighting now offers cities of every size a fitting solution for illuminating streets. New GE Evolve™ LED Scalable Cobrahead fixtures are the next evolution of GE Lighting’s LED roadway lighting technology, reducing energy use up to 50 percent compared to standard high-intensity discharge (HID) systems. Four sizes are immediately available to meet virtually any municipal code. “Some cities spend up to 60 percent of electricity consumption on street lighting,” says Tim Miller, senior product manager for GE Lighting. “Others are already saving hundreds of thousands of dollars a year with GE Evolve LED roadway fixtures.” Read the press release.

June 2012 Investor Update 5

Industrial Businesses continued

Page 6: June 2012 Investor Update - General Electric...tapped Clarke Energy, a distributor of GE’s Jenbacher gas engines, to install turnkey combined heat and power (CHP) plants at its Guinness

• GE Antares, a unit of GE Capital, announced that it agented a $400 million senior credit facility as part of Wind Point Partners’ recapitalization of Hearthside Food Solutions. The financing consisted of a $340 million term loan, a $30 million delayed draw term loan, and a $30 million revolving credit facility. GE Antares’ long relationship with Wind Point, track record of execution, and ability to make commitments in a tough economic environment made them a valued partner in financing this transaction,” said David Stott, vice president of Wind Point Partners. Read the press release.

• GE Capital, Corporate Finance announced it is administrative agent on a $143 million cash flow credit facility for Taghleef Industries, a leading global producer of plastic and packaging films used for food, labeling and adhesive tapes. The financing was used to acquire Applied Extrusion Technologies (AET), a manufacturer of specialized packaging films. Based in Dubai, UAE, Taghleef Industries is the world’s largest producer of biaxially oriented polypropylene (BoPP) packaging films, with six production sites around the world and distribution in more than 100 countries. “GE Capital provided the smart, flexible financing we needed to expand our company’s global footprint,” said Chandan Ghatak, CFO of Taghleef Industries. Read the press release.

• GE Capital, Franchise Finance recently provided a $7.1 million credit facility to Hishmeh Enterprises, a Domino’s Pizza franchisee. The funding includes a $5.6 million term loan to refinance existing debt and a $1.5 million development line of credit for growth capital. The financing was provided through GE Capital’s bank affiliate, GE Capital Bank. “We chose GE Capital because of their industry expertise,” explained Sam Hishmeh, president, Hishmeh Enterprises. “In addition, their responsiveness and ability to provide additional capital to help us grow will bring us back as we continue our growth.” Read the press release.

• GE Capital, Franchise Finance recently provided a $6.7 million credit facility to Pizzerias, LLC, a Papa John’s franchisee. The funding is being used to refinance existing debt. A portion of the funding was provided through GE Capital’s bank affiliate, GE Capital Bank. “GE Capital presented the idea of a recapitalization and we were very pleased with the overall deal structure and with the quick closing process,” explained Ricky Warman, president, Pizzerias, LLC. Read the press release.

• GE Capital Retail Bank and Yamaha Motor Corporation USA announced a multi-year renewal of their installment lending program. GE Capital’s Retail Finance business, the operating entity that provides financial solutions to retailers and dealers to help grow their customer sales, will continue to manage the Yamaha relationship and service the account. Since the Yamaha program began in 2004, more than $2 billion dollars in new and pre-owned powersports equipment has been financed. The program is available through 1,700 Yamaha motorsports, watercraft and marine dealerships in the United States, and for purchases of vehicles, parts, garments and accessories. Read the press release.

• GE Capital Aviation Services Limited (GECAS), the commercial aircraft leasing and financing arm of GE, announced it will lease 10 new Boeing 737-800 aircraft to China Southern Airlines as part of the airline’s fleet renewal program. The 10 aircraft come from GECAS’ existing order book with Boeing and are scheduled for delivery in 2014. China Southern has been a GECAS customer since the early 1990s. It is one of the largest airlines in Asia with a fleet of more than 400 aircraft flying to more than 200 destinations. Read the press release.

June 2012 Investor Update 6

GE Capital

Page 7: June 2012 Investor Update - General Electric...tapped Clarke Energy, a distributor of GE’s Jenbacher gas engines, to install turnkey combined heat and power (CHP) plants at its Guinness

CITIzENSHIp, ECOmAGINATIONSm, HEAlTHymAGINATION • GE and water technology developer memsys clearwater Pte. Ltd. entered into an

agreement to jointly develop membrane distillation (MD) technology for the fast-growing unconventional resources marketplace, including shale gas, coal seam gas and other unconventional fuels recovered by hydraulic fracturing. Under the terms of the agreement, GE will invest in testing the technology and in return receive an exclusive license for the use of the technology in these applications. “We are excited to work with GE in the unconventional resources segment,” said Götz Lange, CEO of memsys. “GE is a technical innovator in the global water and power generation industries, which makes them a great partner to commercialize our MD technology for unconventional resource applications.” Read the press release.

• GE Foundation, the philanthropic arm of GE, will contribute $8.6 million in additional funding over four years to help the Erie School District teachers align their lessons with new education standards. The grant means Erie students will have additional resources as they learn and achieve at a higher level when the Common Core State Standards, which Pennsylvania adopted along with almost all states, become fully implemented in the 2013-14 school year. “The Foundation’s decision to renew its grant in Erie is based on our continuous review and evaluation of Erie’s teachers and administrators after they received the first grant. In short, they did everything they said they would and the result is a stronger district and community,” says Robert Corcoran, vice president, Corporate Citizenship and president and chairman of the GE Foundation. Read the press release.

• The GE Foundation announced a $2.3 million grant to National Medical Fellowships (NMF) for the creation of the GE-NMF Primary Care Leadership Program (PCLP), providing future healthcare professionals the opportunity to experience primary care practice in community health centers across the U.S. NMF is a nonprofit organization dedicated to increasing minority representation in medicine and the health professions. The two-year grant from the GE Foundation aims to draw future health professionals into primary care while building the capacity of community health centers. Read the press release.

June 2012 Investor Update 7

Other Company News

rECENT INvESTOr EvENTSVisit the Events & Presentations section of our investor website to view the presentations.- May 31, 2012*: Bernstein Strategic Decisions Conference Mike Neal, GE Vice Chairman & CEO, GE Capital presented.- June 5, 2012*: J.P. Morgan Diversified Industries Conference Steve Bolze, Senior Vice President, Power & Water, Energy presented.

upCOmING INvESTOr EvENTS (SuBjECT TO CHANGE)- July 20, 2012**: GE 2nd Quarter 2012 Earnings Webcast- September 27, 2012**: GE Infrastructure Investor Meeting* Webcast replays are retained on our website for a limited period of time.

**Meeting will be webcast.

GE Foundation