The Experience of a Technology and Service Provider GE Ahmed Ramadan Senior Vice President Sales & Project Finance Iraq Finance Conference September, 2012

The Experience of a Technology and Service Provider

GE

Ahmed RamadanSenior Vice PresidentSales & Project Finance

Iraq Finance ConferenceSeptember, 2012

GE

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Energy ServicesOil & GasPower & Water

AviationHealthcareTransportation

EnergyTechnology Infrastruct

ure

AmericasAsiaEurope, Middle East &

AfricaCapital Aviation ServicesEnergy Financial ServicesReal Estate

GE Capital

• The only company listed in the Dow Jones Industrial Index today that was also included in the original index in 1896

• Employee: +300,000, Existing: +100 countries• Rev. $156.8B, Earning $11.2B

GE Home & Business Solutions

Appliances & Lighting

Intelligent PlatformSecurity

NBC Universal

CableFilmInternationalNetworkSports & Olympics

A diversified infrastructure, finance and media company taking on world’s

toughest challenges

Who we are

5


GE in the Middle East by the numbers

• Over 4,000 employees• ‘11 revenues: $8.6B

‘08

2.8

‘06 ‘07

3.65.4

’09

6.4

‘04

2.4

8.4

’10 ’11

8.6

‘11‘10‘09‘08‘07Year

4000

2000

500

0

Em

plo

yees

‘12

Middle East Employee Growth

Revenues ($ in billions)

Year

• 16 facilities completed• 4 facilities under construction

Accelerating our growth, executing on growth, and investing in human

resources

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GE in IraqIn Iraq since 1950’s … all divisions operating since 2004 …In country team since 2009

GE HC has provided more than• 1500 clinical equipment • 180 conventional and mobile X-Ray • 20 Digital X-Ray• 14 CT scanners/3 MR systems

Awarded CF34-8C engines to power 10 CRJ900 planes ordered from Bombardier and CFM56-7 engines to power 30 Boeing 737 aircrafts

Mega Water injection project for State Company Oil Production (SCOP), main supplier for fuel treatment additive chemicals

More than 130 installed GE turbines with another 72 turbines being supplied to add over 7,000 MW to the grid

Active since the 50’s O&G sector providing power, compressors and pumping equipment to Iraq refineries, compression stations and pipelines

Healthcare

Water

Energy

O&G

Aviation

Others

GE presence in Iraq extent to all other GE divisions from light bulbs, appliances to rail and sensing and inspection equipment, all have been actively supporting the needs for Iraq infrastructure

Iraq Localization2012-2015

• More than 300 employee dedicated to Iraq

• Iraq is identified as one of the top 5 countries for GE focus within MENAT

• Continuous expansion of local presence

• Offices in Baghdad, Basra and Erbil• 10-15 O&G, healthcare project sites• Service centers at Basra operational

baseCurrent

Future

GE Iraq not GE in IraqWe Make Progress Together

Project Finance

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Global Project Finance Loan Volume

Market trends

• Global project finance activity increased

• Rebound beginning to look sustainable?

• Energy remains biggest chunk of PF activity (~$29B) but decreased by 9.4% to H1 ’09

• Driven by Indian deals, Asia continues to dominate PF market

• Returning bank appetite spurs sponsors to seek longer tenors and higher leverage levels

• ECAs being replaced by local funding in some markets

Global Project Finance Volume by Sector

Source: Thomson Reuters

4%1%

29%

18%

9%

8%

6%

Global project finance

EMEA

Americas

Asia Pacific

1H04 1H05 1H06 1H07 1H08 1H09 1H10

Pro

ceed

s (

US

$)

$160

$140

$120$100$80

$60

$40$20

$0

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MEA Project finance trends

• $100B ($85B in ‘09) … Total volume of projects

• $62B ($52B in ‘09) … Total debt… Govt and Multilateral: $18B

• in MEA volume by 50% (from $8B to $4B)

• Sustained H2 activity in GCC should make up for the gap

Environment (H1 ’10):

0102030405060708090

100110

Western Europe Middle-East& Africa

North America

H1 20102006 2007 2008 2009

Project Finance – Regional Volume 2005-2009

US$bn

Source: Infrastructure Journal

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• Need for credible Developers, EPC & investors’ interest and capabilities

• IPP Regulatory framework still in progress

• Scarcity of long term funding…even more challenging on Project Recourse basis

• ECAs although opening up mainly under corporate/sovereign recourse basis, remain off cover under PF structures

• We are seeing appetite from equity investors for Infrastructure Project development

• Regional banks & International Banks with local presence start to consider longer term commercial lending.

AnbarAnbar

NynawaNynawa

DuhukDuhuk

ErbilErbil

Ta’amimTa’amim

Salah Al-deenSalah Al-deen

SulimaniyaSulimaniya

DiyalaDiyala

BagdadBagdad

KarbalaKarbala

NajafNajaf

BabilBabil

QadisiyahQadisiyah

WasetWaset

MaysanMaysan

Thi-QarThi-Qar

MuthanaMuthana

BasrahBasrah

Project finance: “The Iraq case”

GE Experience in Sales & Project

Finance

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• Global customer finance unit acting as an advisor to the GE Industrial businesses... not a profit center

• Reporting into Corporate Finance with shared objectives with the GE businesses

• A team of ~70 professionals

• Located in 16 countries

Sales & Project Finance

Profile

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Focus Areas

Financial Advisory Support– Financial Structuring– Debt arranging and

syndication– Access to private equity

investors

Project Development Support in parallel with business tech teams– Contract expertise – Technology/market familiarity– Consortium agreements

Funding Support – Debt Products – Mezzanine Products – Derivatives

Project Development Support for Our Customers

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Leveraging global funding sources

• China (CCB, ICBC, SDB)

• Russia (Sberbank)

• Gulf (Al Baraka)• Brazil (Unibanco

Aymore, Banco do Nordeste)

Regional/ LocalBanksECAs

• U.S. Ex-Im• Coface• SACE• JBIC• BNDES

MLAs

• OPIC• World Bank• EBRD• IFC

Int’l Banks, Ins,Pension & Finance Co

• SocGen• BNP Paribas• HSBC

Grants

• Brussels/EU• U.S. DOE,

DOD• Millennium

Challenge Corp

Islamic Finance

• IDB• AFESD• ICD – Private• ABC Islamic

Bank/ Retail Pools

Equity

• EPC/developers• Private equity funds

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Expertise in multiple product areas

• Private• Bank guarantees• Letters of credit• Deferred

payments• Forfaiting• Short/med term

TradeFinanceTrade

FinanceProjectFinanceProjectFinance

• SPC• No/limited

guarantees• Financing

dependant on cash flows

• Frequently requires ECA/ MDB support

Leasing/LendingLeasing/Lending

• Financing typically equipment specific

• Applicable for more developed markets

• Financing frequently requires int’l bank support

ExportFinanceExportFinance

• Mainly public buyer• Gov’t agency• Sovereign, bank

guarantee• Long term• Sourcing issue Political Risk

& Credit

Insurance

Political Risk &

Credit Insurance

• Insure against expropriation, currency inconvertibility, war, etc.

• Insure against corporate risk

• Credit Default Swaps

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• Technical expertise - Access to “world-class” Technical Support Group

• People – 35 person global team; expertise in development, deal structuring and development finance and return

• Access to developers - Strong relationships with wind and thermal project developers

• Knowledge- Project development expertise to support new product launches

• Products - Diverse energy solutions: Thermal, IGCC, Wind, Solar (photovoltaic), Jenbacher engines powered with biofuels

When a piece of the puzzle is missing …

• Asset management- Long term asset management of GE owned projects

GE global development

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GE support on IPPs/PPPs

• Global network of access to International and local EPC & Developers

• Dedicated Expertise team to support Iraq

• EPC Screening & Matrix model to evaluate EPC capabilities

• Strong Access to international & regional developers

• Identify gaps and suggest solutions

• Tailor make Funding solutions

• Long term asset management of GE equipment

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• Expanding capacity to help the Kingdom meet soaring power demand

• More than 300 GE turbines installed

• Generating half (>14GW) of SEC power generation capacity

• GE technology operating in 37 power plants across 4 operating areas

• Developing comprehensive long term financing solutions with US Eximbank since ‘08

• Pilot transaction $1.1B Direct loan to SEC for 3GW(PP8, Feras, Qurrayah)

• Largest ever Loan in the history of US Exim: “Landmark”

• Extended support under direct loans for Al Dur and PP11

+ +

ECA for utilities …

+

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Working together on future projects

•Regional track record: winning IPP power projects

•Developed relationships: leveraging 30 years of local presence

•Financing: facilitating ECA financing to increase developer capability

•Execution: seasoned regional project capability

… to win and execute successfully

GE is committed to support Iraq meet its infrastructure needs

Documents

The Experience of a Technology and Service Provider GE Ahmed Ramadan Senior Vice President Sales & Project Finance Iraq Finance Conference September, 2012