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What is General Electric?

What is General Electric?

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A deep dive into the $146 billion conglomerate General Electric.

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Page 1: What is General Electric?

What is General Electric?

Page 2: What is General Electric?

In 2008, an icon of American business was on the brink of disaster. Lured by enormous profits, General Electric had strayed from its

manufacturing roots and amassed over half of a trillion dollars in risky banking assets. The ensuing crisis, however, served as potent

catalyst for an overhaul. After a half-decade of transformation, here’s a look at where GE stands today…

Page 3: What is General Electric?

First, an overview of GE’s 2013 revenue…

GE’s revenue totaled $146 billion in 2013.

Here’s a breakout by each business in its portfolio.

Transportation4%

Energy Manage-

ment5%

Oil & Gas11%

Power & Water17%

Healthcare12%

Aviation15%

Appliances & Lighting

6%

GE Capital30%

Page 4: What is General Electric?

And profits…

Transportation5%

Energy Management0%Oil & Gas

9%

Power & Water20%

Healthcare12%

Aviation18%

Appliances & Lighting

2%

GE Capital34%

GE generated $13B in profits across the portfolio

in 2013.

Page 5: What is General Electric?

And now for a deep dive into GE’s 8 different businesses, in order of the fastest-growing segments. An overview of 3 key

trends investors must watch in 2014 follows…

Page 6: What is General Electric?

1. GE Capital

GE Capital helps customers finance home projects, including furnishings, appliances, and home improvements.

GE is shifting its focus from banking towards industrial businesses.

30%

% of GE Revenue34%

% of GE Profits

Includes lending to middle-market customers, i.e. businesses generating $10M to $1B in revenue.

2013 StatsRevenue: $44B3-Yr Revenue Growth Rate: -4.0% Profit Margin: 18.7%

Page 7: What is General Electric?

2. Power & WaterIncludes power generation, nuclear, and renewable products.

2013 StatsRevenue: $25B3-Yr Revenue Growth Rate: 0.4% Profit Margin: 20.2%

GE’s 9E gas turbine. Gas and steam turbines generate power for household and industry use. Currently, GE has 13,000 installed around the world.

17%

% of GE Revenue

20%

% of GE Profits

Page 8: What is General Electric?

3. Home & Business Solutions

GE’s Café Series refrigerators come equipped with high-tech climate monitoring. GE has plans to use the industrial Internet to monitor appliance performance and pre-empt failures.

6%

% of GE Revenue

2%

% of GE Profits

Includes home and business products including refrigerators, dishwashers, and light bulbs.

2013 StatsRevenue: $8B3-Yr Revenue Growth Rate: 1.6% Profit Margin: 4.6%

Page 9: What is General Electric?

4. Healthcare

GE’s Optima PET/CT 560 scanner conducts a full head-to-toe scan in one pass to reduce patient time.

12%

% of GE Revenue

12%

% of GE Profits

Includes products ranging from medical imaging and diagnostics to patient monitoring systems.

2013 StatsRevenue: $18B3-Yr Revenue Growth Rate: 2.6% Profit Margin: 16.7%

Page 10: What is General Electric?

5. Aviation

GE’s GEnx engine, the world’s first commercial jet engine with front and rear fans made of carbon fiber composites to reduce weight.

15%

% of GE Revenue

18%

% of GE Profits

Includes jet and turboprop engines, components, and systems for commercial, military, and business aircraft.

2013 StatsRevenue: $22B3-Yr Revenue Growth Rate: 7.5% Profit Margin: 19.8%

Page 11: What is General Electric?

6. Energy Management

GE Power Conversion products equip a ship carrying liquefied natural gas with an integrated power and propulsion package.

5%% of GE Revenue 0%% of GE Profits

Includes products related to the distribution and transmission of power and energy.

2013 StatsRevenue: $7B3-Yr Revenue Growth Rate: 14.0% Profit Margin: 1.5%

Page 12: What is General Electric?

7. Transportation

GE’s Evolution Series locomotive, powered by a 12-cylinder diesel engine. The 16-cylinder version is capable of delivering 6,000 horsepower.

4%% of GE Revenue

5%% of GE Profits

Includes locomotives for railroads, motors and engines for mining, oil drilling, wind turbines, and marine vessels.

2013 StatsRevenue: $6B3-Yr Revenue Growth Rate: 21.6% Profit Margin: 19.8%

Page 13: What is General Electric?

8. Oil & Gas

An illustration of a GE MicroLNG plant, currently in development. The plant will allow GE to liquefy natural gas in remote locations, which will reduce need for fuel transport for vehicles.

11%

% of GE Revenue9%

% of GE Profits

Includes oil and gas equipment and services.

2013 StatsRevenue: $17B3-Yr Revenue Growth Rate: 22.5% Profit Margin: 12.8%

Page 14: What is General Electric?

So, what is General Electric? GE, in short, is a manufacturer and a lender. It makes machines that power the world, engines for

transport, health devices, and loans that stimulate investment. And after 122 years of innovation, GE still manufacturers the product

that started it all – the incandescent light bulb.Now, for the products of the future…

Page 15: What is General Electric?

3 Trends You Must Watch at GE

1. The advent of the industrial InternetGE estimates it could add between $10 trillion and $15 trillion to global GDP in 20 years.

2. The unleashed opportunity in 3-D printingManufacturers are best poised to incorporate 3-D printing into production in areas like aerospace, a potential $1 billion market.

3. The shale gas revolutionGE is poised to convert trucks and other locomotives to natural gas to generate huge savings in fuel efficiency.

Page 16: What is General Electric?

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