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RSNA Investor Meeting November 29, 2007
GE Healthcare
WelcomeDan Janki
“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 often contain words such as "expects," "anticipates," "intends," "plans," "believes," "seeks," or "will." Forward-looking statements by their nature address matters that are, to different degrees, uncertain. For us, particular uncertainties which could adversely or positively affect our future results include: the behavior of financial markets, including fluctuations in interest rates and commodity prices; strategic actions, including dispositions; future integration of acquired businesses; future financial performance of major industries which we serve, including, without limitation, the air and rail transportation, energy generation, media, real estate and healthcare industries; unanticipated loss development in our insurance businesses; and numerous other matters of national, regional and global scale, including those of a political, economic, business, competitive and regulatory 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.
2 / GE Healthcare RSNA Investor Meeting
November 29, 2007
Today’s agenda
10:30 – 10:45 Welcome and Introduction
- Dan Janki- Joe Hogan
10:45 – 12:45 GE Healthcare Booth Tourand Lunch
1:00 – 3:00 GE Healthcare – Winning Today, Winning Tomorrow
3:00 – 3:30 Q&A
RSNA Investor Meeting November 29, 2007
GE Healthcare: Overview
Joe HoganPresident & CEO, GE Healthcare
4 / GE Healthcare RSNA Investor Meeting
November 29, 2007
RSNA 2007 – GE drives ‘Early Health’
Innovation - Tech Pavilion-Healthcare 5+ years out
One GE
Integrated displays
Larger footprint
100+ products
Customer engagement - Open designfor easier navigation and crowd control
Integrated CampaignPre/during/post RSNA. Print, web, events, buses, PR
What’s new
CT LightSpeed HD, LightSpeed VCT XT,
MI Motion Free PET, Infinia Hawkeye 4,
MR Signa Vibrant, Signa HDx,
XR Senographe Essential, Volume RAD, Definium 5000,
U/S LOGIQ 9 Care area series/4D probe
HCIT Centricity PACS, Radiology, RIS-IC, PACS-IW, RIS/PACS,Radiology-IW, Radiology Outreach, Cardiology Info System, RIS/PACS EMEA, Dynamic Imaging
Link to future with Tech Pavilion
Workflow to products to Early Health
Introduction to Dynamic Imaging
Re-brand booth, integrate messaging
RSNA Investor Meeting November 29, 2007
GE Healthcare: Overview
Joe HoganPresident & CEO, GE Healthcare
“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 often contain words such as "expects," "anticipates," "intends," "plans," "believes," "seeks," or "will." Forward-looking statements by their nature address matters that are, to different degrees, uncertain. For us, particular uncertainties which could adversely or positively affect our future results include: the behavior of financial markets, including fluctuations in interest rates and commodity prices; strategic actions, including dispositions; future integration of acquired businesses; future financial performance of major industries which we serve, including, without limitation, the air and rail transportation, energy generation, media, real estate and healthcare industries; unanticipated loss development in our insurance businesses; and numerous other matters of national, regional and global scale, including those of a political, economic, business, competitive and regulatory 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.
Key messages todayGE Healthcare: Tough 2007… stronger 2008Anticipate OEC on track 1Q 2008 DRA 2008 better comparisons
Strong global growthSolid strategy in existing marketsExplosive growth in emerging markets
Exciting pipelineInnovation & segmentation
Strong services growthMigration to higher value offerings
Healthcare trendsRegulatory reimbursement pressureDemographics/public policy Data & information driving healthcare decisions
‘Age of Early Health’ GE at the forefront
+2%
GE Healthcare 2007 overview
Great business, tough 2007, positioned for stronger 2008
~$17B
~$3.1B
Strengths
• Strong global growth
• Services growth & execution
• Strength in IT & Life Sciences
• Strong pipeline of new products
Headwinds
• DRA US impact
• OEC Consent Decree
• Japan slowdown
OP 18%
-2%
Revenue35%
65%
~(14)%
~12%
Revenue
Population snapshot: US, EU5 & Japan
Healthcare environment
2004 2009E
Aging
2007E 2015E
Burden of disease
Healthcare spending
Diabetes
Oncology
Cardiology
Obesity
����13%
Total spend ($B)
Near term pressures
Reimbursement
• Payment systems designed to contain costs
• US Deficit Reduction Act (DRA) & Japan cap on spend
Regulatory
• Europe & US increased regulatory vigilance1960
-
1972
1972-
1975
HMO
Act
1975-
1977
1977-
1979
Carter
Initiatives
1979-
1982
1982-
1987
DRG
1987-
1990
1990-
1995
1995-
2000
Managed
Care
2000-
2007E
2007E-
2010E
DRA
Annual % Increase
Demand for IT solutions• US: Healthcare in political spotlight• UK IT and technology investment• Europe: EU white paper focus on prevention/IT
7.6%
3.5%
6.8%
4.1%
6.1%
4.9%
7.0% 7.3%
5.6%
7.5%
6.4%
~265
Population over 50 years MM
~260~300
Great market, strong future
2.2
1.4
.42.15
.78
US healthcare spending resiliency
US W EU Japan China ROW
PrevalenceMM
����8%
% GDP 15.8 8.8 7.9 5.4 6.1
250
10 / GE Healthcare RSNA Investor Meeting
November 29, 2007
13% CAGR
2000 2004 2007E
GE Healthcare 7 year growth trend
How we grow
� Industry-leading technology
�Global, product & services reach
�World-class execution & rigor
�Growth through disease focus
�Efficacy & efficiency focus
Positioned for continued growth
Medical Diagnostics
Diagnostic Imaging
Clinical Systems
Healthcare IT
Life Sciences
$7
~$17
$13
(Revenue $ in billions)
Three complementary, technology platforms
Creating new opportunities, positioned for growth
Information Technology
Broad-based Diagnostics
Life Sciences
Medical Diagnostics
Electronic medicalrecords
Protein & cell sciences
Diagnostic Imaging
Discovery tools
Integrated admin/clinical
ClinicalSystems
Picture Archiving Systems (PACS)
Clinical: tissue biomarkers
50% Revenues & Employees overseas
GE Healthcare: A global business
16,900 / 34%
8,600 / 18%
22,100 / 45%USA
Europe & MEA
Asia
Americas1,500 / 3%
Building a strong global position
(Revenue $ in billions)
CAGR%
Europe
Japan
China
AGM/LA
EE/MEA 18
15
9
2
18
2000 2007E
$3
~$8
13%CAGR
Our Vision: Healthcare Re-imagined
We are transforming healthcare by helping predict,diagnose, treat andmonitor disease earlier to improve quality of life
Goal: $400B+ diagnostic spending shift over the next decade
Monitor12%
Monitor10%
Treat60%
Treat70%
Diagnose19%
Predict5%
Predict9%
Diagnose15%
Future
Today
Global healthcare spend = $4T
10%shift
13 / GE Healthcare RSNA Investor Meeting
November 29, 2007
14 / GE Healthcare RSNA Investor Meeting
November 29, 2007
GE well positioned
Reduces hospital stays
Drives better clinical outcomes
Reduces mortality
Diagnostic shift: Major developments 2007
…that are shaping public policy worldwide
• Cost of heart disease = 1% GDP/Year• Cost of mental disorders = 3-4% of GDP/Year
Actions:• More investment in prevention• Drive quality outcomes + IT
EU Health Whitepaper 2008-13Presidential Health Plan Elements
MD Anderson - Ultrasound effective for less common breast cancer staging
Science - DNA test to identify early heart attack risk
ACRIN study - CTC matches colonoscopy for colon cancer screening
US Nat’l Cancer Institute - death rates from cancer � 2.1% a year since 2002
64 Slice CT identify patients, without invasive caths, needing heart surgery
New data reinforcing value of Dx…
Trends play to GE offerings
• Transparency• Digitization IT
All Candidates agree:• Quality outcomes• Disease diagnosis & prevention
US cancer deathsdown 2.1%
Age of early health is here
• Prostate cancer continues to fall: screening, PSA
• Breast cancer rates decreased 3.5%: first drop in 20 yrs
• Colorectal cancer 5yr survival: 10% late stage; 90% early detection
“The decline in cancer has little to do with improvements in late stage treatment...but more to do with screening, earlier detection and treatment."
Prof. Gordon McVie, European Institute of Oncology, Milan
Prostate cancer deaths
0
20
40
60
1975 2003
Prostate
Per 100K m
ales
Deaths down 4.1%0
15
30
45
Colorectal cancer deaths
Male
Female
1975 2003
Per 100K pop Deaths down 4.9%
Deaths down 4.5%
Breast cancer deaths
0
15
30
45
1975 2003
Breast
Deaths down 3.5%Per 100K females
Innovation + clinical data = new markets
Visipaque: first choice for renal-compromised patients
GE upside
64 slice CT = cardiac cath in heart disease detection
Digital mammo better in dense breast tissue
1st yr med students with hand carried U/S better than cardiologists
Great technology and clinical data drive growth
Recent research on GE technology
Premium pricing 35%+ CAGR
20%+ increase digital sales: 9 month backlog
GE Compact U/S +52% ���� 06/07
Global CT growth
Hospitals & powerful IT reduce central line cath infections GE/Intermountain
GE Business How US savings
HCIT 34% EMR adoption in US
DI CT, MR, PET, SPECT in-patient imaging
$5B annually/Medicare
Clinical Systems $1.2Bannually/Medicare
$32B annually
In-patient ultrasoundLunar for Osteoporosis
GE helps drive healthcare savings
Front end diagnostics & IT saving ~$40B/year
GEHC platforms driving early health
Diagnostics driving healthcare value
Organs
Molecules
Targetedtherapies
One sizefits all
Rx Dxtandem
Tissues
Dx enabling Rx stratification
HealthValue
High
Low
Broad-basedDiagnostics
InformationTechnology
Life Sciences
Wholebody
Theage ofEarlyHealth
Data driven healthcare
19 / GE Healthcare RSNA Investor Meeting
November 29, 2007
Today’s speakers
Mark Vachon, President & CEO, Diagnostic Imaging
Reinaldo Garcia, President & CEO, International
John Chiminski, President & CEO, Medical Diagnostics
Omar Ishrak, President & CEO, Clinical Systems
Peter Ehrenheim, President & CEO, Life Sciences
Vishal Wanchoo, President & CEO, GE Healthcare IT
RSNA Investor Meeting November 29, 2007
GE Healthcare Diagnostic Imaging: Leading positions, great fundamentals
Mark VachonPresident & CEO, Diagnostic Imaging
21 / GE Healthcare RSNA Investor Meeting
November 29, 2007
6%CAGR
Diagnostic Imaging: Leading positions, great fundamentals
$6
2003 2007E
~$8
Key messages
• Global leadership
#1 CT #1 MR
#1 PET #1 X-Ray
• ~$30B Market… demographics + technology = sustained growth
• Diagnostics value proven by HC economics
• Strong global growth… US market challenging
• Robust product development continues
• Services accelerating customer value
(Revenue $ in billions)
22 / GE Healthcare RSNA Investor Meeting
November 29, 2007
Powerful weapons… leading fight against disease
Imaging is central to confronting the "Big 6"
Cardiacdisease
Alzheimer’sdisease
Coloncancer
Breastcancer
~$400+B
~$100+B
~$14+B
~$15+B
Diabetes
~$131+B
Lung cancer
~$5+B
� Find disease earlier
� Leverage- Biology- Chemistry- Physics- Engineering- Genomics- Informatics
Technology evolution advancing care
Image quality drives new applications & usage
Dramatic increases in imaging accuracy
Cardiac CT 1979 Breast MR 1998 PET (FDG) 1995
Lightspeed VCT NOW
Breast MR NOW
PET/CTNOW
24 / GE Healthcare RSNA Investor Meeting
November 29, 2007
High growth procedures
Heart �50%
CT Colonography �20%
Brain �17%
Breast �50%
Cancer �37%
Brain �43%
� Rapid MI growth - PET and NM adoption
� MR - adoption for Breast, Stroke, Abdomen
� CT - Cardiology, Neurology, Oncology
� X-Ray - digital transformation
2006
CAGR
12%7%
8%
CTMR
MI
XR47%
Digital
Global procedures - attractive growth
2003
696
2009E
~915(Procedures MMs)
815
PET
VCT
MR
Robust product development
FastLab
Tomosynthesis
• Integrated coil & biopsy table• 50% procedure growth
• Digital revolution• Common platform• Multiple configurations
• Tomo, mobile, & stereo• Unique solutions• Scaleable platform
• Improved lesion detectability• Tracks tumor motion - ++ therapy
• 5 Beat cardiac, 83% lower dose• Stroke assessment with 24% lower dose, 2X coverage
VCT XT
Dedicatedbreast MR
Definium
Motion-free PET
New products driving $3B of growth over 3-years
• 50% more FDG, efficient multi-tracer platform
26 / GE Healthcare RSNA Investor Meeting
November 29, 2007
MR
DXR
MICT
9 sites to 4
7 sites to 4: LCC dominate
8 sites to 5: Dual capabilities
Goldseal 75% in LCC
Market and cost alignmentSupply Chain Engineering
40% ↓↓↓↓ in sites ���� 69% of labor in LCC
2006 2010E
High costcountry
Low cost
• Customer intimacy
• Products in country for country strategy
• Global platforms + productivity
Productivity funding investments
65%
35%
~50%
~50%
27 / GE Healthcare RSNA Investor Meeting
November 29, 2007
U.S. environmentGrowth strategy
• Adjusted Cost; Commercial focus
• Drive technology; Customer solutions
• Advocacy
Continued challenges
• Continued pressures through 1H 2008
• Advocacy becomes critical
US DI market ($B) - NEMA
04 05 06 07E 08EMkt V% 11% 4% 7% (15%) ~0%
~$5.8~$5.5
~$6.2
~$5.3 ~$5.3
In just 5 areas imaging saves Medicare ~$5B annually
Disease US Incidence Savings/year
400K ER visits/year
Savings per $1 spent
Stroke 700K $468MM$2.64
7MM patients/year
$1.15
250K/year1MM hospital days
$2.96
$1.63
Diagnostic Imaging = better care + economics
$112MMER chest pain
Heart disease $163MM
Appendicitis $111MM
Inpatientcare
Imaging saves 3.6MM hospital days annually
CMS savings >$4.3B/Year
$4.00 saved per $1 spent
Global DI - geographic portfolio
Geographic diversity Double digit growth in 5 of 8 regions
� AGM: region growing 2-3x GDP
� Japan: positive reimbursement trends
� China: market recovering, growth in CT
� Europe: west funding east
� Latin America: healthy economies
� US: DRA & regulatory pressure
� Canada: MR++, PET++, Radio-pharma ++
CAGR
Americas
2000 2007E
$5
~$8
MEA
China
Japan
AGM 10%
0%
5%
20%
5%
~5%CAGR
Europe 10%
(Revenue $ in billions)
EE 15%
30 / GE Healthcare RSNA Investor Meeting
November 29, 2007
All P&L’s: Services driving higher value
Break/FixMaintenance
ContractServices
Upgrades andSoftware
Performance Solutions
Comprehensive Services
Technical Training and Education
• Full customer productivity engagements
• Total outsourcing
• Customer renewals/clinical IT
• Multi-year customized agreements, focus on digital and remote
• Demand service: labor and parts
• Performance management
Broad service capability
$3.7
2005
~$5.7
2007E2003
14%CAGR
B/L $4.4 $6.5 ~$7.4
$4.7
(Revenue $ in billions)
31 / GE Healthcare RSNA Investor Meeting
November 29, 2007
Expanding Services solution portfolio
Optimizing assets Optimizing processes Optimizing people
~$2.5
10E07E
~$3.0
Market size: ~$25B GE share: <10%
• Comprehensive asset management
• Capital planning
• Asset tracking/RFID
~$0.1
10E07E
~$0.4
Market size: ~$3B GE share: <5%
• ED/OR throughput and efficiency
• Hospital of the Future
• Patient flow/RFID
~$0.2
10E07E
~$0.4
Market size: ~$5B GE share: <5%
• Leadership education… NCHL JV
• Lean Six Sigma
• Patient safety/quality
(Revenue $B)
32 / GE Healthcare RSNA Investor Meeting
November 29, 2007
Diagnostic Imaging
Leading positions, great fundamentals
� ~$30B Market…demographics + technology = sustained growth
� Diagnostics value proven by HC economics
� Strong global growth… US market challenging
� Robust product development continues
� Services accelerating customer value
RSNA Investor Meeting November 29, 2007
GE Healthcare: Driving growth in International
Reinaldo GarciaPresident & CEO, GEHC International
International: Continued strong growthInternational footprint
Key messages
• Long term double digit growth
• Diverse growth strategies
- Developed: share gain, segmentation
- Emerging: market creation, localization
- Focus on fast developing economies
• #1 or 2 in most geographies
• Win by scale, expertise, FAST deployment
DI ServicesClinicalSystems
MDx LS IT
Robust strategy driving growth
(Revenue $ in billions)
CAGR%
Europe
Japan
China
AGM/LA
EE/MEA 18
15
9
2
18
2000 2007E
$3
~$8
13%CAGR
~8-11%
Germany
� Public restructuring continues
� New private opportunities
UK
� Focus on stroke centers
� New trend: Outpatient centers
� 2008: GPO opportunity
France
� Imaging strong: Market � in 2008 new push for CT, MR & PET
� Next: Tackling Alzheimer’s
Spain
� PET centers: Next big focus
� Overseas expansion priority
Growth trends in developed mkts… Europe
European Union
� Healthcare controlled by member states
� Benchmarking drives standards
Different countries: different needs
Collective interest in enhancing healthcare
HC spend % of GDP0% 6% 12%
Ireland
Austria
Finland
Spain
Sweden
Italy
United Kingdom
Denmark
Greece
Belgium
Portugal
Germany
France
Netherlands
36 / GE Healthcare RSNA Investor Meeting
November 29, 2007
Segmentfocus
14%
18%AAGR
GE growth in developed markets
Sales ($B)
2007E
$1.2
~$3.9
2000
Western Europe
2006 2007E
$0.6
Winning in Germany
Growth strategy
� Experienced & specialized sales force
� Segmentation by country and market
�Marketing aligned with national spend
� Country management: One GEHC
$0.5
Growth strategy
� Segmentation: private practices, academics, hospital chains
� Local capability… from headquarters to Germany
2007 Share gains
CT: � 10ptsU/S: � 12ptsMR: � 6ptsMammo: � 5pts
Sales ($B)
2 pts = 4X
Company to country sell
Growth in emerging marketsHuge healthcare opportunities for GE
• Big populations: limited healthcare access
• Undeveloped healthcare infrastructure
• Financing needs… access to funding
Emerging growth drivers
• Oil and commodities boom
• Healthcare infrastructure projects
• Privatization trends… entrepreneurs
• Healthcare insurance
Developed Developing
8-11%
3-6%
Healthcare spend % of GDP
~$40B
Emerging markets technology segment growth
~$11B
2007E 2020E
GE sales ~$2.9B~$10-12B
GE advantage: fund, plan, build entire HC Infrastructure Fast
38 / GE Healthcare RSNA Investor Meeting
November 29, 2007
12%CAGR
Explosive growth in emerging markets(GE Sales $B)
28%CAGR
+15% +10% +9% +13% +9%
13%CAGR
12%CAGR
20%CAGR
RegionMkt Growth
~$5B by 2010
� Company to country� Government loans & local manufacturing� Funding growth… GE & third party funding� Growth through Enterprise approach� Localization of capabilities… regional focus
MEACAT
~$1.0
~$0.5
2007E 2010E
Latin America
~$0.7
~$0.5
2007E 2010E
China
~$1.0
~$0.7
2007E 2010E
EE & CIS
~$0.6
~$0.4
2007E 2010E
AGM
~$1.2
~$0.8
2007E 2010E
“Go Big” opportunities
39 / GE Healthcare RSNA Investor Meeting
November 29, 2007
Ministry of Health challenges
Population seeking better healthcareGovernment understand “health is wealth”
Broad portfolio of equipmentGlobal benchmark capacity
On going opportunities
• Morocco… Maternal-Infant Care, Oncology, Cardiology
• Pakistan… Hospital upgrades
• Egypt… Emergency, ICU’s and OR
• Ukraine… Breast cancer screening
• Georgia… “100 new hospitals”
• Abu Dhabi… Breast cancer management
• Romania… Hospital upgrades
• Bulgaria… Cardiology program
“Go Big” company to country
• Inefficient infrastructure• Workforce capacity and skill• Child and mother mortality• Infectious diseases + Oncology and CVD
Seeing GE as credible partner
• Capture curiosity• Develop joint roadmap• Execute recommendation
Deal funnel
220
450
~850 ($MM)
2006
68106
Orders
~180
($MM)
2007E2005 2006 2007E2005
12-18 mths opportunity
$130-175MM
‘’Go Big’’ Funding growth through financing solutions
Capital Markets Corporate
HealthcareFinancialServices
Orders financed
Developed Developing Emerging
G
E
O
R
G
I
A
CMC regional deploymentHFS regional deployment25 effective FTE’s130 effective FTE’s
Funding Growth… GE & third party funding
Creative solutions serving market needs
Exporting Importing
10-15 Russia
5-10 China
~20 China
~10 Latin America
15-20 EE, SEA
10-20 Africa
~10 Africa
~30 China, Vietnam
20-40 MEA
USA
China
Israel
Saudi
Korea
Spain
Finland
Austria
Hungary
• Country to country loans to promote exports
• Very favorable terms
• GE well positioned with manufacturing in lending countries
AnnualLoan $MM
Buy
Equipment
Government backed loans & SKD’s
2008E2006
~$1.1B
$0.9B
41 / GE Healthcare RSNA Investor Meeting
November 29, 2007
Big GE win:$21MM
‘’Go Big’’ growth through Enterprise approach
GE Delivers
• Advisory
• Hospital planning
• Procurement
• Installation and maintenance
• Clinical and Mgmt education
• Financing
• Consultancy
Innovative, FAST, Implementation
Case Study: Turkey
Who: Universal Hospitals Group
Size: 43 Hospitals and Clinics
What the customer wanted: Immediate national/international expansion
Challenge: Outfit 4 hospitals in Turkey, one in Albania within 2 months
5.3%CAGR
2%CAGR
‘’Go Big’’ localization of capabilities
GDP
Africa
Middle East
Turkey/CA
Russia/CIS
2007E 2010E
~$4.6T
~$5.6T
2007E 2010E
~1.7B~1.8B
Population
� GDP & population growth 2-3X OECD� Primary & infant care gvt initiatives� New private sector = investment funds� Hospital creation/rejuvenation� Shortage of physicians + all HCPs
� Enhanced focus on region� Increased coverage� Better market knowledge & presence� Inside knowledge, access, networks� GE sales ~$1.2B by 2010
Market size $2.8B… growing 15-20%
Strong fundamentals… tremendous growth opportunities
Driving growth in International
� Diverse growth strategies
- Developed: share gain, segmentation
- Emerging: market expansion, localization
- Focus on fast developing economies
� #1 or 2 in most geographies
� Winning by scale, expertise, FAST deployment
Long term double digit growth
RSNA Investor Meeting November 29, 2007
GE Healthcare: Medical Diagnostics driving Early Health today & tomorrow
John Chiminksi President & CEO, Medical Diagnostics
7%CAGR
Medical Diagnostics driving Early Health today and tomorrow
World’s largest, strongest imaging agent business
#1 Nuclear #1 Optical
#1 X-Ray #2 MR
Key messages
• Growth via Life Cycle Mgmt & new products
• World-class R&D and clinical trial capability
• Strong synergies with GE…+ global
• Globalization expanding market opportunities
$1.5
2003 2007E
~$1.9
(Revenue $ in billions)
High margin business positioned for growth
Breadth across modalities & disease areas
Cardiology
Oncology
Neurology
Urology
Optical Imaging
TargetedSPECT
PETMR SPECTX-Ray/CT
5% 10% 2% 29% 13% 5% Segment Growth(2003-2007 CAGR)
Positioned to capture high-growth segments
Anatomy Function Perfusion Viability Metabolism
03 07E
03 07E
03 07E
03 07E
03 07E
45%
23%
8%
(1%)
4%
Life cycle mgmt delivers organic growth
� Dementia with Lewy Bodies� Expand target audiences –
Geriatricians, psychiatrists
� Expand GEHC footprint� New patient populations –
Metabolic syndrome, Women
� CT colonography with Oral� Novel packaging
� New clinical data in cardiac/CT� New target audiences – Peds, ER
202
~470
Launched 2000 First agent to identify Parkinson’s Disease
Launched 1996Myocardial perfusion
� Cardiac� Target outpatient imaging centers
Launched 1993 Non-ionic MRI
361 ~416
246~331
175 ~168
9
~38
Launched 1982Global Gold standard
Launched 1996ONLY Iso-Osmolar media
Product Description 5 year CAGRRevenues in $MM
Growth actionsclinical plans
29% CAGR since 2002
55% CAGR since 2002
Proof: Clinical validation drives growth
NEPHRIC
ACC/AHA Guidelines
Recover
COURT VICC
MetaAnalysis
Parkinson’s Syndrome
indication
• 1st choice for renal-compromised patients
• Clinical differentiation drives premium price
• ACC/AHA guidelines… A+ recommendation
• One GEHC offering with VCT
• Dementia indication doubles patient population
• Expanded customer base: psychiatrists, psycho-geriatricians
• Securing reimbursements in key countries
MACE / C
T CIN
Neurology
sales force
155211
293
370
449~473
~557
9
15
2428
~38
~46
2002 2004
5
Clinical utility -DLB
2006 2008E2002 2004 2006 2008E
Clinical data + new indications = increased revenues
Clinical utility -PS
Dementia
49 / GE Healthcare RSNA Investor Meeting
November 29, 2007
$120MM*
Enabler ofnovel tracers
$150MM*
Annual revenue potential ~$1B
Driving one new product per year
New productDisease diagnosisand detection
SonazoidUltrasound
Cancer lesions in the LiverOncology
AdreViewSPECT
Neuroblastoma. Heart Failure Oncology, Cardiology
2007: Japan
2008: Global
2009: N. Am
2008: EU and US
Anticipated launch
HexvixOptical
Bladder Cancer detection Oncology
2006: Europe2008+: RoW, US
FastLab/SteriPETPET
Manufacture of PET cancer agents Oncology, Cardiology, Neurology
DatSCANSPECT
Parkinson’s and DementiaNeurology
2010: EU/USPiBPET
Amyloid in Alzheimer’s Neurology
�
�
1 new product year
“One GE”
* Peak year sales
$570MM*
$200MM*
$50MM*
Partner with Clinical Systems
Chemistry + Engineering
Partner with Clinical Systems
Global Imaging NetworkPharma collaborations
Integrated Development Electronic Capture
Regulatory Interactions
50 / GE Healthcare RSNA Investor Meeting
November 29, 2007
Est. incremental revenues ($MM)*
Diagnosing heart disease…first major advance in SPECT for 50 years
Driving growth through integrated offerings
5X productivity
2X patient volume
50% less false negatives
Motion free… 27 cameras
+=
+
Efficiency �������� Accuracy ��������
UltraFast cardiac
Myoview
Advanced applications
~$35
~$70
~$100
2008E 2009E 2010E
*UF Cardiac+ Myoview
Capitalizing on regional growth… $90+MM
($MM)
12%
+4%Marketgrowth(2007-2008)
Europe
• 2-3x market growth
• Distribution + “Go Direct”
• Drive key brands in developing markets
• Drive ionic to non-ionic
Strategy
Market growing fast… GE growing faster
2007E 2008E
30%
2007E 2008E
+8%
Latin Am
20%
2007E 2008E
+12%
MEA
20%
2007E 2008E
+14%
Asia
52 / GE Healthcare RSNA Investor Meeting
November 29, 2007
High margin business positioned for growth
� World-class R&D and clinical trial capability
� Growth via Life Cycle Management and new products
� Strong synergies with GE imaging capabilities + global
� Globalization expanding market opportunities
Medical Diagnostics driving Early Health today and tomorrow
RSNA Investor Meeting November 29, 2007
GE Healthcare Clinical Systems Business built on new market creation
Omar IshrakPresident & CEO, Clinical Systems
54 / GE Healthcare RSNA Investor Meeting
November 29, 2007
11%CAGR
$2.9
2003 2007E
~$4.4
(Revenue $ in billions)
Key messages
• Segmentation… proven success model
• Dynamic environment… growth strategies in place
• Less dependent on reimbursement
• Sustained margin expansion & strong growth
Leading point-of-care technology in hospitals, offices and home
Ultrasound Cardiology
Monitoring Bone Densitometry
Anesthesia Maternal-Infant Care
Winning through innovation and market segmentation
$16B Point of Care
Market
Patient-CentricVision
CustomerFocus
DistributionProduct
Alignment
10%
$5.6
Services
10%8%15%
$3.2$2.9$4.2
SpecialtiesMonitoringUltrasound
Mkt ($B)
GE Rev V%
• Share gains in every business
• Innovation driving double digit revenue
• 90% of market not dependent on reimbursement
Markets & performance
Net Promoter Score +11
pts
Segmentation… proven success model
Right product, right customer drive growth
Consistent share gain↑↑↑↑ 3 pts/yr
Attractive imaging
modality in DRA environment
Value productsCompact product linesHigh-end Platforms
Radiology
$1.5
1%
7%
Mkt ($B)
Mkt V
GE CAGR(04-10)
Women’sHealth
$1.1
3%
15%
Cardiology
$1.1
4%
11%
Compact
$0.5
22%
54%
� Launch annual breakthroughs
� Sustained cost productivity
� Focused global distribution
15%CAGR
~ ~
Revenue($B)
1.6
0.7
~1.8
~2.7
Radiology
Women’s Health
Cardiology
Compact
Service
2010E2000 2006 2007E
Driving image quality excellence
Creating new markets & users
Accelerating adoption
Strategy
TECHNOLOGY MIGRATION
• Vivid
• Voluson
• Logiq
• Radiology
• Women’s Health
• Cardiology
• New Apps
• Perform. Color
• Access B&W
• Rural China
Proof: Ultrasound…growth accelerating
Hyper-market segmentation
Infrastructure build drives demand
New $1BMarket
+5ptsMarket share
(05-07)
Critical Care
$1.3B
4%
11%
07 $B Mkt
07 Mkt V
GE CAGR(04-10)
Peri-Op
$0.7
3%
10%
Neonatal
$0.3
8%
12%
Wireless
$0.6
7%
11%
� Care area excellence
� Clinical information logistics
�Market creation
Strategy
Ubiquitous MonitoringIntegrated SystemsDepartmental
Solutions
Growth via
care area excellence
Infrastructure drivingworkflow solutions
Technology enablesmass deployment
10% CAGR
~ ~2004
0.8
2007E
~1.1
~1.4
2000
0.3
2010E
WIRELESS & MINIATURIZATION
Revenue($B)
Proof: Monitoring solutions… a global leader
Hyper-market segmentation
Clinical Systems growth strategies
Care deliveryEconomics/payors
Costs Reimb.
GlobalizationDemographics
Enabling customers to adapt in a dynamic environment
• Multiple departments
• High acuity
HOSPITAL• Disease management
• Wellness
HOMECLINIC• Multiple specialists
• Episode prevention
CS
CS
CS
CS
CSCS CS
Acuity
PRESENT
FUTURE
Uti
liza
tio
n
CS
CS
CS
CS
CS
CS
CS
CS
Low
InnovationInnovation UbiquitousproductsUbiquitousproducts ConvergenceConvergence Customer
reachCustomer reach
$100 every 3 years
04 07E 10E
ASP ↑↑↑↑ 5% Cost ↓↓↓↓13% CM ↑↑↑↑ 4 pts
Ubiquitous monitoring: Patient data module (PDM)
PDM/Ubiquitous Revenue($MM)
~$80~$140
~$300
Growth strategy: Innovation
Innovation in action: Panda warmer
Advancing care delivery
$116
~$200
~$305
CAGR ↑↑↑↑ 14% CM ↑↑↑↑ 8 pts
• Steady heat to the newborn • Caregiver cool and comfortable• Hands-free alarm silencer may reduce infection
Fueling sustained growth
MIC Revenue($MM)
• Miniaturized full-function monitor• Supports efficient patient workflow• Ensures data continuity / consistency
Winning with technology & scale…2007 product launches
07E 08E 10E
Other
Anesthesiology
GE CAGR 82%
(2004 –2007E)Emergency medicine
& critical care
Specialized imaging
• Rheumatology
• Breast surgery
• Specialized & dedicated products & distribution
• New innovation with breakthroughs
Growth in compact U/S sales
$100
$147
$50$44 $46
$116
$174
$54
$171
2004 2005 2006 2007E
GE targeting new ultrasound users
$530MM compact market
CAGR 36%
Compact driving procedure efficiency…cost ↓↓↓↓, quality ↑↑↑↑, safety ↑↑↑↑
Strong revenue growth
Growth strategy: Ubiquitous products
Compact ultrasound revenue($MM)
GE #152%V
~$265
~$60
~$201
GE Healthca
re
Sonosite
07E 10E03
10% CAGR
07E 10E
~403
~545Anesthesia revenue($MM)
AisysCarestation
04
304
Anesthesia
Monitoring
Clinical Information
Incremental $100MM RevenueUltrasound Patient
Monitoring
Anesthesia
Operating Room
Ultrasound
Monitoring147
Revenue($MM) 247
102
• Build on strong anesthesia products and customer relationships
• Extend clinical sales offerings into Labor & Delivery and Emergency Department
• Leverage customer intimacy/observation
• Streamline clinical workflow & reduce medical errors
• Broad array of technologies to deliver customer need
Growth Strategy: Convergence
Harnessing the breadth of Clinical Systems
Identify unique customer need:Technology convergence
Footprint to migrate to new areas:Commercial convergence
Convergence drives incremental growth
8x Increase (06 – 08E)
7 New Products(06 - 07)
GE breadth & technology driving advantage
•Need in > 2500 counties in rural co-operations
•Local practice patterns demand U/S and ECG
• Dedicated local engineers
• Focused sales channel
• New products at every China Medical Equipment Fair (CMEF)
ECG
U/S
GE upgrades local practice needs
Local commitment & understanding
Today Future
World’s largest show 2X/yr
CMEF
• Broad range of products
• Launch new products every 6 months
• Creating the foundation of healthcare in China
584
07E 08E06
2,246 units
~4,800
~3,140Rural Health Units Sold
Growth Strategy: Customer reach
GE offerings: ‘Must haves’ for all rural clinics
Winning in Rural Health with “In China for China” strategy
63 / GE Healthcare RSNA Investor Meeting
November 29, 2007
Clinical Systems: Business built on market creation
� Segmentation… proven success model
� Dynamic environment… growth strategies in place
� Less dependent on reimbursement
� Sustained margin expansion & strong growth
Breadth & depth driving double-digit growth
RSNA Investor Meeting November 29, 2007
GE Healthcare: Life Sciences winning in core and future markets
Peter EhrenheimPresident & CEO, Life Sciences
65 / GE Healthcare RSNA Investor Meeting
November 29, 2007
10%CAGR
Life Sciences winning in core and future markets
$1.1
2005 2007E
~$1.3
Key messages
• Sales of $1.3B in a $20B, growing market
• Channel to pharma industry
• Great position in Biopharma tools
• Good profit leverage
• Bridging biological discovery & clinical practice
(Revenue $ in billions) Global Leader in Life Science tools
Biopharmaceutical manufacturing
Protein purification
Cellular imaging
Antibody binding analysis
Drug screening technologies
66 / GE Healthcare RSNA Investor Meeting
November 29, 2007
Growth• $20B+ segment
• Fragmented market
• Strong franchise in Bioprocess and Protein sciences
Pharma offerings• Preferred supplier to many Biopharma / Pharma companies
• Channel to pharmaprofit pools…
Bridging research & clinical
• Visibility of early trends
• IP useful in imaging (e.g. C11)
• Technologies for diagnostics
Life Sciences: What’s in it for GEHC?
Bench to Bedside
67 / GE Healthcare RSNA Investor Meeting
November 29, 2007
• Cell culture• Filtration• Disposables
Strong Biotechnologies business
GE Products designed into manufacturing processes
GE “benefits from”biopharma growth
GE Healthcare:Inside biopharmaceuticals
GE products/processes used in production of over 90% of all FDA approved biopharmaceuticals
• Enabling biopharmaceutical production
• GE products in all steps of the manufacturing process
GE expanding to new applications:
• Double digit market growth• Market leader in protein purification• 350+ products in development Bio/Pharma
Strong growth in core market:
Antibody-based, vaccines driving market growth
~74~82
~98
07E 08E 10E
$B
Global sales of biotherapeutics
68 / GE Healthcare RSNA Investor Meeting
November 29, 2007
AXP systemProteomics BioArchive
PET isotopesCytodexCells
BiomarkerIdentification
TrackingAdmin.StorageQCManipulation/ Expansion
Separation/ SelectionCell Source
Genetic Susceptibility Create diagnostic
Driving NEW molecular diagnostics and imaging
Molecular markers identify high risk populations for cancer imaging
Driving NEW cell therapies: i.e. heart disease
Adult stem cells are isolated and processed to treat heart disease
Early tumour detectionTissue Imaging
Life Sciences integrates other GEHC platforms
Diagnostic Screening
Proteomics Disease/Pathology Staging
Genomics
Molecular Cellular In Vivo
Wealth of biological data
Life Sciences’presence in biosupplier markets…
…generates a wealth of biological
data & disease understanding
Opportunity for GE Healthcare IT
Translating data into diagnostic value requires strong data handling & processing capabilities
70 / GE Healthcare RSNA Investor Meeting
November 29, 2007
� Sales of $1.3B in a $20B, growing fragmented market
� Channel to pharmaceutical industry
� Great position in biopharmaceutical tools
� Good profit leverage
� Bridging biological discovery & clinical practice
Great business positioned for Strong 2008
Life Sciences winning in core and future markets
RSNA Investor Meeting November 29, 2007
GE Healthcare: Effective IT integration key to the future of healthcare
Vishal WanchooPresident, Healthcare Information Technology
22%CAGR
Healthcare IT vehicle for healthcare transformation
Providing clinical and financial IT solutionsimproving HC costs and careRadiology Info Systems PACS EMR systems Revenue cycle
Key messagesHealthcare IT positioned to win across key segments:
• $20B market growing at 8-10%
• Imaging: Opportunity for more market penetration
- Dynamic Imaging acquisition tech win
• Physician office: Demand for EMR, decision support
• Hospital: Intermountain “go-live” with co-developed software
• Data aggregation digital pathology: Big mkts for GE
$0.8
2003 2007E
~$1.8
Next page
Positioned for double digit growth
(Revenue $ in billions)
20% penetration EMR
$3B market8% growth
15% EMR penetration
$800MM market 12% growth
Healthcare IT growth strategy
Imaging
Adoption of IT: Why now? GE strategy Market opportunity
� Increase offerings IB
�Dynamic Imaging to medium/small hospitals
�Expand to cardio & pathology
Hospital
� Intermountain Healthcare partnership
�Use EMR to � clinical outcomes via decision support
�Build on product breadth & reputation to win
Physician office
�Enhanced applications to customer base to drive EMR
�Utilize EMR data for secondary markets
50% penetration$2.5B market 8% growth
Health systems under huge pressure
Radiology first to digitize…tremendous benefits
Digitization spreading
to other departments
EMR adoption is exploding
EMR adoption drives data aggregation market
$1.8B globalmarket
… and well-positioned as market moves horizontally and to med/small hospitals
GEHC good position in fragmented market
Position of strength to address high-growth global market segments
� Dynamic #1 in customer ranking
� Quick Install Cycle critical
� =Dynamic’s Web-based technology
GE’s distribution & brand recognition
DigitalPathology
To adjacent space
Med/SmallHospitals
Large Hospitals
Radiology Cardiology
RIS/PACS technology
Imaging… access everywhere
+
6%
23%
32%
11%
7%
13%
8%
GE Healthcare
Carestream
Others
Fuji
Agfa
McKesson
Siem
ens
% Market
80%adoptionin 8 years
Digital Pathology… $1B global market
Expected Digital adoption rates based upon PACS
• � diagnostic accuracy & productivity
• � turn-around time for consulting
• Expand access to pathology sub-specialists
• Enable integration to EHR10E 12E 14E 16E
GE developed scanner technology
Dynamic web-based platform
GEHC IT capabilities
+ Clinical collaboration for viewing/analytics
80%
50%
20%10%
• High volume factory-like flow
• Demand increasing… 7% AGR
• Shortage of Pathologists
Labor intensive process
Diagnosis of disease through examination of tissues/cells
GE driving transition from ‘slides to digital’
~16% CAGR~14% CAGR
Market accelerating
Government incentives: IT Win• Pay for Performance (P4P)
• Reimbursement reforms
Stark relaxation•�� expense for physician adoption
• Expand throughout physician office
07E
~1.5
08E
~1.7
10E
~2.2
Meeting current customer needs
• User interface & workflow
• Financial/clinical integration
• Hosting offerings for smaller practices
Physician office market strong
($ in billions)
Creating “data market” opportunity• Quality reporting & reimbursement
• $7B Pharma market… safety and efficacy
Multitude of physician needs: plays to GE expertise
(Revenue $ in billions)
07E
~0.4
08E
~0.5
10E
~0.6
35%* ���� in diagnosis
50%* ���� in diagnosis for atypical symptoms
OutcomesMeasurable MeaningfulScalable
• Portal to improve patient care… persistency & compliance
• Patients recruited from Physician Offices and NBCU
• Data from GEHC EMR + Portal to provide outcomes
*3 month preliminary results
Partnering with Pharma to improve therapy
$100MM opportunity over 3-5 years
iVillage Total HealthHealthology
Patient ChannelPatients and CaregiversHealthcareProfessionals
Yourcondition.com
CentricityEHR
Gastroesophageal Reflux Disorder
Example
Data aggregation
market
Transformationalreleases
1st Go Live
Automation
Evolution
Transformation
Financial
Departmental applications
Clinical
Today1980s 1990s
Decision support
GE & Intermountain partnership… key to transformational technology
Clinicalcollaboration
Independentsoftwarevendors
GEHC IT growing 20%+ over next 5 years!
New England Journal of Medicine
Hours of antibiotic therapy
Days in hospital
Costs for hospital
With IT
103
10
$26K
None
330
17
$44K
�70%�40%�40%
Market forces accelerating adoption
GE + Intermountain
Driving better patient outcomes
Hospital market transforming
Evidence-based care
Advanced Decision Support
‘10
‘08
‘07
‘09
Go Live at
79 / GE Healthcare RSNA Investor Meeting
November 29, 2007
Effective IT integration key to the future of healthcare
Next page
Healthcare IT positioned to win across key segments:
� $20B market growing at 8-10%
� Imaging: Opportunity for more market penetration
- Dynamic Imaging acquisition tech win
� Physician office: Demand for EMR, decision support
� Hospital: Intermountain “go-live” with co-developed software
� Data aggregation digital pathology: Big markets for GE
Positioned for double-digit growth
RSNA Investor Meeting November 29, 2007
GE Healthcare: Summary
Joe HoganPresident & CEO, GE Healthcare
GE Healthcare 2008 summary
Great business well positioned
2008 growth drivers~5-7%
~10%
• OEC shipments resumed
• Strong global growth
• Exciting 2008 product pipeline
• Strong services backlog
• Quality and regulatory processes
• Efficiency and productivity
OP
2008E
OP% 19%
$0.8
Revenue
RSNA Investor Meeting November 29, 2007
Thank you