Financial Strength Investor Information Ticker Symbol GE Exchange NYSE P/E ~19 Dividend Yield 2.7% Market Cap $430B Shares O/S 10.3B Performance Highlights “GE delivered a solid quarter in spite of extreme volatility in the financial services market. Infrastructure delivered double-digit segment profit growth of 12% led by Oil & Gas, Transportation and Energy. Our financial services businesses performed well, demonstrating our global strength and our AAA credit rating. NBC Universal posted its fourth straight quarter of segment profit growth, highlighted by the successful launch of its new prime-time television line-up, a strong cable performance and a slate of popular summer films. Our outlook for the remainder of the year is strong. We have momentum in Infrastructure, a better set of financial services business and a successful turnaround at NBC Universal.” — Jeff Immelt , Chairman & CEO ’07 dividend increased to $1.12; 31 st consecutive annual increase Updated October 12, 2007 3Q’07 0.0 0.4 0.8 1.2 1.6 YTD '07 YTD 06 '06 '05 ’04 Earnings Per Share from Continuing Operations (in dollars) 14% AAGR Up 19% Growth (V%) Orders +20% • Revenues +12% • Assets +18% • EPS (V%) 3Q’07 +9% to $0.50 (Cont. OPS) • +15% to $0.54 (Net Earnings) Returns ROTC +80 bps. to 18.5% • Margins Total Year op. profit +70 bps. to ~17% • Cash YTD cash generation (CFOA) +11% • to $15.8B Key performance metrics – Solid 3Q performance 0.0 0.2 0.4 0.6 0.8 1.0 YTD '07 YTD 06 '06 '05 ’04 Dividends Paid Per Share (in dollars) 10% AAGR Up 12% 0 36 72 108 144 180 YTD '07 YTD 06 '06 '05 ’04 Consolidated Revenues (Continuing Operations) (IN BILLIONS) 11% AAGR Up 12%
Transcript
Financial Strength
Investor Information
Ticker Symbol GE
Exchange NYSE
P/E ~19
Dividend Yield 2.7%
Market Cap $430B
Shares O/S 10.3B
Performance Highlights“GE delivered a solid quarter in spite of extreme volatility in the financial services market. Infrastructure delivered double-digit segment profit growth of 12% led by Oil & Gas, Transportation and Energy. Our financial services businesses performed well, demonstrating our global strength and our AAA credit rating. NBC Universal posted its fourth straight quarter of segment profit growth, highlighted by the successful launch of its new prime-time television line-up, a strong cable performance and a slate of popular summer films. Our outlook for the remainder of the year is strong. We have momentum in Infrastructure, a better set of financial services business and a successful turnaround at NBC Universal.”— Jeff Immelt, Chairman & CEO
’07 dividend increased to $1.12; 31st consecutive annual increase
UpdatedOctober 12, 2007
3Q’07
0.0
0.4
0.8
1.2
1.6
YTD '07YTD 06'06'05’04
Earnings Per Share from Continuing Operations (in dollars)
14% AAGR Up 19%
Growth (V%)
Orders +20%•Revenues +12%•Assets +18%•
EPS (V%)
3Q’07 +9% to $0.50 (Cont. OPS) • +15% to $0.54 (Net Earnings)
ReturnsROTC +80 bps. to 18.5%•
Margins
Total Year op. profit +70 bps. to ~17%•
Cash
YTD cash generation (CFOA) +11% •to $15.8B
Key performance metrics – Solid 3Q performance
0.0
0.2
0.4
0.6
0.8
1.0
YTD '07YTD 06'06'05’04
Dividends Paid Per Share (in dollars)
10% AAGR Up 12%
0
36
72
108
144
180
YTD '07YTD 06'06'05’04
Consolidated Revenues (Continuing Operations) (IN BILLIONS)
11% AAGR Up 12%
Revenues Earnings Returns
2-3XGDP
10%+
20%
Reliable execution &
financial discipline
Safe & reliable growth company
Invest in leadershipbusinesses
Great people & team
Growth as a process
Invest & deliver
A Growth Company
Growth Initiatives
GE spends ~$15B annually to maintain technical leader-ship (global infrastructure, ecomagination, early health)
GE employs 45,000 sales people focused on commercial excellence
GE has 60+ Imagination Breakthroughs in the market (representing either technical or commercial innovation)
Executing long-term strategy
GE’s Growth Initiatives
• Infrastructure technology • Demographics• Developing markets • Value from liquidity• Digital connections • Scarcity/environmental
3 Growth as a process Organic revenue growth +8% +Services revenues +7%; CSAs at $96B, +7% +Global growth +15% … developing markets +18% +IBs contributing ~$5B revenue growth in 2007 +
4 Great people & team Ranked first on + Fortune’s ‘Top 10 Companies for Leaders’ 0
5
10
15
20
'10E'09E'08E'07E'06'05'04
Ecomagination Revenue Growth (in billions)
0
5
10
15
20
25
30
35
YTD '07YTD '06'06'05'04
Services Revenues (in billions)
11% AAGR +10%
0
10
20
30
40
50
60
70
80
90
YTD '07YTD '06'06'05'04
Global Revenues (in billions)
14% AAGR +17%
GE will grow revenues from products and services that provide significant and measurable environmental performance advantages to customers.
Delivering on ecomagination
Today’s interdependent global economy is creating new opportunities for growth — and the corresponding challenges of man-aging that growth responsibly. In both instances, GE’s size is an advantage. GE is leveraging its size to make a big impact in the following areas:
Ecomagination — accelerating the devel-opment, marketing and visibility of products that will help our customers meet pressing environmental issues across a variety of industries. We have also set ambitious targets for reducing the emission of green-house gases and increasing the energy efficiency of our operations.– “Delivering on ecomagination” — The com-
pany’s second report on how GE is deliver-ing on its environmental commitments can be viewed and downloaded on line at http://ge.ecomagination.com/site/down-loads/news/2006ecoreport.pdf
Emerging Markets — a vital part of GE’s growth strategy in the years ahead — but to be successful we must integrate citizenship from day one, solve big needs and create value for local communities. – Nearly 60% of our growth will come from
developing countries in the next decade.– Emerging markets will represent ~25% of
global talent by 2010.
Compliance & Governance — our compli-ance systems have brought all our business leaders into the process — not just our finance and legal staffs. Maintaining high standards of compliance and governance supports a high performance, high integrity culture. – Voted best in the world by Financial Times
for Corporate Governance.
Environment, Health & Safety — our EHS management system is designed to estab-lish global standards and to promote busi-ness leadership, responsibility and accountability for performance. GE does this by providing our employees with the information and training they need to meet GE’s EHS expec-tations and maintain the monitoring systems to ensure we meet these expectations every-where we operate, including emerging mar-kets.
“Investing in a sustainable future” — The company’s third citizenship report on how GE uses its capabilities to help address some of the world’s most pressing needs can be viewed and downloaded online at www.ge.com/citizenship.
Solving Big Needs
Our Contributions
The GE family contributed $215+ million and gave more than one million volunteer hours worldwide
Donated $1.5 million to Disabled American Veterans to improve lives for disabled veterans and their families
GE employees and retirees serve as mentors, tutors, helpers, builders and friends. Every year, we complete more than 1,000 service projects
A Good Company“It’s up to us to use our platform to be a good citizen, because not only is it a nice thing to do, it’s a business imperative.” — Jeff Immelt
Recognitions
#1 Global Most Admired Company 1998, 1999, 2000, 2001, 2002, 2005, 2006, 2007 Fortune Magazine
2007 World’s Most Ethical Company Ethisphere Magazine
World’s Most Respected Companies 2005, 2006, 2007 Barron’s
2007 #1 Company for Leaders Fortune Magazine
World’s Most Respected Company 1998, 1999, 2000, 2001, 2002, 2003, 2004, 2005 Financial Times
100 Best Companies for Working Mothers 2004, 2005, 2006, 2007 Working Mother
EnergyStar partner of the year 2004, 2005, 2006, 2007 EPA/DOE
2007 KLD Global Climate 100 Index for environmental technology leadership
#1 US Climate Conscious Brand The Climate Group
2005, 2006, 2007 IR Magazine Award Grand Prix for best overall investor relations
2006, 2007 IR Magazine Award Best Corporate Governance
2006 Top 40 Diverse Companies Black Enterprise Magazine
2006 OSHA Leadership Award for commitment to health and safety
2005 CED Corporate Citizenship Award for commitment to integrity and corporate ethics
2004, 2005, 2006, 2007 Dow Jones Sustainability Index for global citizenship
GE InfrastructureGE Infrastructure is one of the world’s leading providers of fundamental technolo-gies to developed, developing and emerg-ing countries, including aircraft engine, energy, oil and gas, rail and water process technologies and services. GE Infrastruc-ture also provides aviation and energy leasing and financing services.
3Q’07 Wins
• Signed agreement to purchase the assets of Walter Engines, an aircraft engine manufacturer based in the Czech Republic
• Announced intention to acquire Sondex plc to further oil & gas production capability
• Won contracts to supply 30+ gas turbines in Kuwait and Qatar
• Will provide water purification solutions for China’s first-ever rainwater recycling system during the 2008 Olympic Games in Beijing
• Continued to invest in renewable technologies by partnering with Airtricity on additional wind-energy farms
GE Commercial FinanceGE Commercial Finance offers an array of services and products aimed at enabling business worldwide to grow. GE Commer-cial Finance provides loans, operating leases, financing programs, commercial insurance and reinsurance, and other services.
3Q’07 Wins
• Launched a full range of financial solutions for the medium duty truck sector
• Enhanced Canadian footprint by acquiring real estate located in Ontario, Quebec, Edmonton, and Newfoundland
• Grew internationally - Acquired proper-ties in Hamburg and Dusseldorf, Germany
• Closed several multi-million dollar financings
Our Businesses“GE is in tremendous shape. With our portfolio changes substantially completed, we have reorganized our business to more closely focus on our customers, further simplify our operations, and sustain our momentum.”— Jeff Immelt
GE MoneyGE Money is a leading provider of credit services to consumers, retailers and auto dealers in countries around the world, offering financial products such as private label credit cards, personal loans, bank cards, auto loans and leases, mortgages, corporate travel and purchasing cards, debt consolidation and home equity loans and credit insurance.
3Q’07 Wins:
• Announced the Earth Rewards® Platinum MasterCard which allows users to reduce carbon footprints
• Will partner with Ryanair, Europe’s largest low fare airline, to provide co-branded credit cards across a number of European markets
• Formed alliance with American Express to issue credit cards with the American Express brand in Japan
GE HealthcareGE Healthcare is a leader in the development of a new paradigm of patient care. GE Healthcare’s expertise in medical imaging and information technologies, medical diagnostics, patient moni-toring systems, disease research, drug discovery and biopharmaceutical manufacturing technologies is dedicated to detecting disease earlier and helping physicians tailor treatment for individual patients.
3Q’07 Wins:
• Announced a collaborative research agreement with Eli Lilly and Company to discover and develop advanced in vitro diagnostic assays
• Received FDA approval for its new mobile mammography product that will improve cancer screening for millions of women around the world
• Will supply imaging technologies to England’s best athletes as they prepare for the 2008 Beijing Olympic Games
• Announced that it has co-founded and opened China’s first MR Application Academy in Shanghai
NBC UniversalNBC Universal is one of the world’s leading media and entertainment companies in the development, production and marketing of entertainment, news and information to a global audience.
3Q’07 Wins:
• Agreed to acquire Sparrowhawk Holdings and its global portfolio of pay TV channels and Oxygen Media, one of the nation’s leading female-focused cable television networks
• Opened strong in Fall primetime paced by “Heroes,” “Sunday Night Football” and the series premiers of “Chuck” and “Bionic Woman”
• CNBC ratings up 50% vs. same period last year ... USA is the #1 basic cable network
• Universal Pictures “The Bourne Ultimatum” was a box office hit garnering $220MM+ at the U.S. box office and $145MM+ internationally
• Won 19 Emmy awards ... NBCU shows “30 Rock,” “Saturday Night Live” and “The Office” led the charge
GE IndustrialGE Industrial provides a broad range of products and services throughout the world, including appliances, lighting and industrial products; factory automation systems; security and sensors technology, and equipment financing, management and operating services
3Q’07 Wins:
• Won the ceiling maintenance business at Target and will provide ceiling lamps and ballasts for the retailer’s stores across the U.S.
• Announced an agreement with the U.S. TSA to supply explosives detection systems for airports throughout the country
• Introduced the Ruffneck™ Zone 1 Explosion Proof Computer which can be used in virtually any environment
By the Numbers
There are more than five million GE share owners.
GE operates in more than 100 countries around the globe.
GE invests $1B annually in training plus development initiatives
GE ranked #1 Global Most Admired Company Fortune Magazine
We begin 2007 with a stronger set of businesses. Our key financial metrics are heading in the right direction. Our cash position gives us tremendous flexibility. We see full-year 2007 EPS from continuing operations of $2.19–2.22, an increase of 18–19% over comparable 2006 earnings. We believe that our strategic moves position GE for sustained growth in the future.
(a- Financial Service businesses on an after-tax basis
2007 Earnings Guidance (Continuing Operations)
EPS $2.19–2.22 +18-19%
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.
a Well positioned for 2007 & beyond
– Dramatically improved business portfolio
– High quality, consistent & sustainable double-digit earnings growth
