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Electrical Products Group
J. R. ImmeltChairman & CEO
May 19, 2009"Results are preliminary and unaudited. 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: the severity and duration of current economic and financial conditions, including volatility in interest and exchange rates, commodity and equity prices and the value of financial assets; the impact of U.S. and foreign government programs to restore liquidity and stimulate national and global economies; the impact of conditions in the financial and credit markets on the availability and cost of GE Capital’s funding and on our ability to reduce GE Capital’s asset levels and commercial paper exposure as planned; the impact of conditions in the housing market and unemployment rates on the level of commercial and consumer credit defaults; 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 soundness of other financial institutions with which GE Capital does business; the adequacy of our cash flow and earnings and other conditions which may affect our ability to maintain our quarterly dividend at the current level; the level of demand and financial performance of the major industries we serve, including, without limitation, air and rail transportation, energy generation, network television, real estate and healthcare; the impact of regulation and regulatory, investigative and legal proceedings and legal compliance risks; strategic actions, including acquisitions and dispositions and our success in integrating acquired businesses; 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.”
“In this document, “GE” refers to the Industrial businesses of the Company including GECS on an equity basis. “GE (ex. GECS)” and/or “Industrial” refer to GE excluding Financial Services.”
Weathering the recession
JRI EPG 05-19-09/3
1Q’09 performance
GE Infrastructure 11%
S&P industrials (38)
NBCU (45)
S&P media (29)
Capital Finance $1.1B
S&P financials –
EarningsV%
Strong relative performance
� Maintained backlog … orders (10)%
� Solid cost out … more restructuring
� Increased transparency … Capital Finance
� Resolved rating
JRI EPG 05-19-09/4
EnvironmentPositive signsEconomic downturn continues
– Global recession
– Unemployment continues to increase
– Commercial credit cycle will be difficult
– Weak consumer/business confidence
– Long cycle equipment orders pressured
+ Parts of the globe still robust …China, Middle East, Latin America
+ Broad deflation should help margins
+ Customer usage helps services growth
+ Stimulus momentum
+/– Capital markets improving
Continued caution
JRI EPG 05-19-09/5
Company total year framework
Energy ++ �
Infrastructure
Technology + �
Infrastructure
NBCU 0/‒ —
Capital Finance $5 Profitable
Corporate/C&I Flat �
Dec. 16 Today Comments
• Global growth
• Aviation on track• Healthcare pressured
• Advertising market weak• Tough comps
• Costs lower • Tax benefits
• C&I on track• Costs lower• Additional restructuring planned
JRI EPG 05-19-09/6
Capital Finance
Pre-tax, pre-provision ~$13.3 ~$11.1 ~$9.2
Credit costs (9.7) (11.5) (13.7)
$3.6 $(0.4) $(4.5)
Capital Finance earnings ~$5.0 ~$2.0-2.5 ~$0
GECC ratios (%) – 4Q’09ETCE/TA 6.9 6.4 6.1
Estimated Tier 1 common 7.7 7.2 6.9
Originaloutlook
Fed.base case
Fed.adverse case
2009 stress case update
� 1Q credit losses & impairments running at slightly better than Fed. base case … leading indicators still tough
� Adequate capital … current scenarios do not require external capital� Analyst meeting July 28 … will review 2Q & early look at 2010 stress case
($ in billions)
JRI EPG 05-19-09/7
InfrastructureDynamics
� Managing through a difficult environment� Maximize services, emerging markets, stimulus & cost out
($ in billions segment profit)
+ –
Oil pricesServicesEmerging marketsStimulusMargins
CreditGlobal economy
'08 '09E
$6.1++
Energy
'08 '09E
$8.2 +
TechnologyServicesEmerging marketsStimulusCost out
CreditAir freightU.S. diagnostic imagingU.S. rail loadings
JRI EPG 05-19-09/8
NBCU
+ Double digit growth in Cable
+/– Film and Parks mixed
– Broadcast advertising pressure … realizing savings from ’08 actions
– Restructuring
'08 '09E
$3.1-
($ in billions – segment profit)Upfront outlook
'08 '09E
‒ Expecting market to reflect recessionary pressure+ Across-the-board strength in Cable+ Great content/ratings in Cable News, CNBC,
NBC News, Sports+ New content in primetime … strong digital platform+ Comedy is key … Leno launch+ “Advertiser friendly” approach� Historically post-recession scatter offsets smaller
upfront
+ Cable– Network(10)-(15)%
$4B
Cable strength & breadth of portfolio help offset recession impact
JRI EPG 05-19-09/9
Executing through the recession
+ Solid funding plans
+ Margins on new origination
+ Strong capital ratios
+ Protect backlog
+ Growth with stimulus
+ Services strength
+ Global orders
+ Lower cost
+ Strong cash generation
+ Maximize financial flexibility
StabilizeCapital Finance
Outperformingin a
tough economy
Strengthen thebalance sheet+ +
JRI EPG 05-19-09/10
Solid funding plans
� Credit ratings … Double A stable� ~$30B cash … earnings impact
($ in billions)
� Collections > originations … ~$25B
� CP at $50B by year end
� Bank lines > CP
� $8B+ non-guaranteed
� TALF securitization
Maturities
$69
Debtissuances
~$45
2009
� Collections > originations … ~$25B
� Pre-fund in 2009 ($7B done)
� Strengthening ILC
Maturities
$67
Debtissuances
~$40
2010
7
JRI EPG 05-19-09/11
Solid new margins
Valuable franchises … operating in today’s economy
($ in billions)
Commercial Finance volume
1Q'09 TY'09 ROI
$7.3
~$50-55 3-4%
� Strong commercial rhythm
� Increasing customer touch points
� Proposals � 9X vs. 1/1/09 … conversion rate � 4X in Americas
Capital allocation
CLL � + Demand strengthening+ Bulk buy+ New originations ROI … 3%+
Verticals � + Sale leaseback(GECAS/EFS) + Restructuring
+ New originations ROI … 5%
Global � + Solid profit … Garanti +44%banking + Funding improving
U.S. � + ’08+ underwriting solidconsumer + Margins > losses
1Q positiveearnings
JRI EPG 05-19-09/12
Industrial earnings outperform
GE has advantages
($ in billions)
Huge backlog
� Timing of recovery� Customer credit� Impact of regulation
What we can control
120
~$170
50
Services
Equipment
+ Protect our backlog� $10B of financing … <$1B in 1Q� Robust CSA
Uncertainty
+
Orders
+
–
� Maximize impact of stimulus� Invested $50B R&D this decade� Partner in green Energy, Infrastructure,
Healthcare
+ Leverage our unique business model� Company-to-country� Services
+ Aggressively repositioning cost structure
JRI EPG 05-19-09/13
Global stimulus
U.S. Brazil
U.K. China
Germany Canada
France Japan
EU Saudi Arabia
Energy 157 $94
Healthcare 126 32
Other 136 66
419 $192
Target regions Built process & pipeline
#projects $B
Government targets
� “Green” technology
� Infrastructure
� Rural healthcare
� Healthcare IT
� Export finance/R&D
+ $0.4B GE content
+ Partner … FP&L, Cisco
+ Biggest demo
+ 1,000 jobs
+ $0.2B GE content
+ French financing
+ Build IB
+ 250 jobs
Accelerate projects
Smart Grid – Miami Pakistan power grid + Sodium battery (NY)
� 2011 commercialization
�Customer demand
� 350 direct & thousands indirect
Accelerate technology
JRI EPG 05-19-09/14
'08 '09E
Robust service model
~$8B of earnings … higher visibility
($ in billions)
Growth
$35
CSA 120 +Margins + +
+
Energy + � + + F turbine outages �
O&G + + + + IB growth
Aviation + – + + CFM/GE90 shop visits �
Healthcare + – + + Customer outsourcing
Transp. + – + – Environmental services
’09 profitgrowth Market
GEIB Usage
Drivers
JRI EPG 05-19-09/15
'08 '09E
Win the big global orders($ in billions)
Global Industrial revenue
~$60+
� China growth15-20%+ Execute on stimulus … Rail+ Healthcare growth+ East to west pipeline (O&G)
� India election outcome is encouraging
� Execute on big Energy projects+ Iraq on track + Environmental+ O&G resurgence + MEA growth
� Leverage global partnerships+ Aviation … Middle East
+ JV with government railroad+ 1,700 Class I locomotives+ Service franchise+ Local production in 2010+ Ship to new regions
Kazakhstanrail
$1B+
’10F-’13F
JRI EPG 05-19-09/16
'08 '09E '10F
Lower cost
� Plan for more restructuring … headcount & footprint �
� Indirect deflation� Lower spend
� Lower commodity costs� Global sourcing� Supply chain excellence
Strong cost momentum into 2010
'08 '09E '10F
Base cost
($ in billions)
$40$44
–
Material deflation
1%(2)%
4-5%
JRI EPG 05-19-09/17
Strong cash generation($ in billions – Industrial CFOA)
Dynamics
$14-16
GE teams targeting working capital upside
‒ Progress collections ’09/’10 headwind up to $5B
+ Offset by working capital improvements� Inventory � $2B� Receivables � 2� Payables � 1
+ Lean is driving results
Inventory turns 6.2 6.9Receivables turns 4.2 4.6Payables days 76 86
Divest & other ~$2B
+ $1B cashsavings
’08 ’09EAviation
� GE working capital opportunity … 1 turn = ~$5B+
JRI EPG 05-19-09/18
Financial flexibility
GE has strong operating processes & balance sheet …no need to raise external capital in world we see today
Raise equity Cut dividend More cash on hand
Reduce CP Reduce leverage Absorb losses
1 2 3
4 5 6
4Q’08
$15B
’09E-’10F
~$13B
3Q’08
$16B
1Q’09
$47B
1Q’08
$102B
1Q’09
$58B
GECC TCE/TA
6.6%
’08 + ’09
$17-20B
JRI EPG 05-19-09/19
GE in recession
1
2
Stabilize Capital Finance
Industrial earningsoutperform
Strengthen the balance sheet
� Weather the losses� Stabilize funding� New margins� Adequate capital� Increased transparency …
analyst meeting 7/28
� Protect backlog� Maximize stimulus� Services� Global reach� Lower cost
� Strong cash generation� Conservative approach
3
Leading in areset world
JRI EPG 05-19-09/21
Our view of reset world
� Dramatic change in Financial Services
� Increased role of global governments
� Slower developed world economic growth
� Highly differentiated global growth
� Trust is low … corporations getting more scrutiny
Smaller Capital Finance
Positive engagement
Play in big marketsOrganic growthServices
Focus “resource rich,”China & India
Build brand & culture
For GEDynamics
JRI EPG 05-19-09/22
The future for GEGrowth
+ Reposition Capital Finance
+ Invest in growth businesses
Profitability
Revenue~$125
Assets~$400-450Financial
Infrastructure& Media
+
+ Launch new technologies+ Expand services growth+ Position in fast growth regions+ Win in big themes
More valuable portfolio Organic growth 2-3X GDP1 2
Strategic imperatives
1.5-2.0%ROI
Margins 15-20%
Cyclical & strategic
2-3X GDP
($ in billions)
JRI EPG 05-19-09/23
More valuable portfolio
Top P&Ls
Market attractiveness
Long term focus on improving industrial growth rate
Partner tomaximize value …
Nuclear
Divest to createvalue … Homeland
Security
Portfolio
Renewable energyAvionicsOil & GasHCIT/Life SciencesServicesCable/int’l./filmWater/ES
Build business ($40B)
Reinsurance/FGICFinancial AssurancePlastics/SiliconesIndustrial Supply4 TV Stations
Timely exits ($60B)
GE competitiveadvantage
JRI EPG 05-19-09/24
Reposition Capital Finance
Profitable franchise
Future
� Domain-based verticals� Align with brand� Origination + risk� Competitive with banks
Today
Assets $540 ~$400-450
($ in billions)
Core55%
Global banks15%
Verticals15%
Restructuring15%
Core &verticals85%
Global banks15%
Strong GE connection
�Mortgages�EquipmentServices
�Some consumer
� Lower leverage … more regulation
� “Low stress” funding … diversified
� Fewer competitors
Fit with the era
Valuable franchise withstrategic flexibility
JRI EPG 05-19-09/25
Launch new technologies
Big pipeline in place
� Broad technical & content leadership in big industries+ Energy+ Healthcare+ Media
� Build unique systems that utilize breadth+ Smart Grid
� Bring big impact GRC-brand technologies to market
Technology investment(2000-2009)
Product Content
� Global position
� Stimulus support
$50
$40
($ in billions)
Consistent investment over the past decade …multiple new platforms launching in 2009-10
20,000+patents
JRI EPG 05-19-09/26
Broad based Energy leadership
“Green Industrial”
Clean coal Electrification
ABWR/ESBWR
Base load Renewables Oil & Gas
Wind
“Integrated riser”
Billions of GE content in each plant
World’s biggest renewables business
Technicalleadership in O&G
Solar
� Launching thin film
� Launching 2.5MW
� Global growth
Only U.S.
basedplayer
Duke-GEfirst plantin 25 yrs.
�Water reuse�Waste heat recovery
� $2B+ opportunity
JRI EPG 05-19-09/27
Broad based Healthcare leadershipPathology toolsMolecular imaging pipeline
� GE leading in neuro-imaging agents
� Compounds being developed for Alzheimer’s & Parkinson’s
� Therapy being developed with pharma components
� Automating labs with digital tools
� Software engineering co-located with clinical pathologists
�Molecular screening
RL
Portable ultrasound Value MR
� Innovative point-of-care diagnostics
� Portable “at bedside” ultrasound with exceptional image quality
� 20% � cost vs. current low-cost, compact U/S
� High performance, low total-ownership-cost 1.5T MR
� Simplified features easy for new users to learn
� 65% population minimal access to MR … big opportunity
Innovation at all price points
JRI EPG 05-19-09/28
Strong NBCU content across all platformsGlobal cable channels
Comedy
� Enhances NBC’s comedy brand� Ground breaking change in broadcast TV model … eliminates need to program 5 hours per week … should make 8-10 p.m. stronger
� Significant channels growth from 14 in early ’07 … to 67 now … to ~80 planned by 2010
� Distributed throughout Asia, Western Europe, U.K., Latam and CEE/Russia
Cable
� Continue development of original series for cable via Universal Cable Productions
� Position cable as next generation “broadcast nets”… opportunity to grow price
Digital: hulu provides premium online leadership
� Continue franchise/event focus with strong comedy � Grow family offerings … 1st illumination title, Despicable Me, in ’10
Film
Robin Hood
Get Him to the Greek
Despicable Me
Funny People
Public Enemies
JRI EPG 05-19-09/29
System leadership: Smart Grid
$5B Smart Grid opportunities
Smart Grid
Home energy management
� C&I products >85% of energy & peak load in a home
� Enable consumer end of Smart Grid
Smart appliances
� Enable peak savings without affecting consumer life-style
Hybrid electric water heater
� Combines energy savings technology with traditional system
� Same amount hot water at 50% less energy
Delivering the solutions today…
� Key enabling technology for renewables & PHEV
� Driving grid efficiency/ optimization while reducing carbon footprint
JRI EPG 05-19-09/30
“GRC-led” technologies
IGCC & Co2 sequestration Sodium battery
� $150MM invested� Second generation leadership in locomotives� Broad customer interest� $1B+ opportunity
Military helicopter (GE 38) Airborne electric power
� Advanced materials
� 10% lower fuel consumption; 50-80% operations & support cost advantage
� $2B+ market opportunity
� Electric loads increasing … 2x – 4x
� Electrification technology can improve reliability, system cost, performance & safety
� $5B+ GE opportunity
� Lower cost than pulverized coal
� Sites plentiful … regulatory challenges remain
� GE opportunity … $0.7B/plant
Utsira formation(Saline aquifer)
Natural gas field
~1 km
CO2 injection
JRI EPG 05-19-09/31
Expand services growthKey strategiesRedefine boundaries
Growthrate
Margins
2-3X GDP 25-30%+ Grow the installed base
� Global & new technologies
+ Expand adjacent content …increase $/installed base� Software driven� Sensors are a big advantage
+ Expand beyond the installed base� Workflow & IT
+ Increase customer touch & productivity tools~75% of GE
Industrial earningsGoal: increase ourservice growth rate
JRI EPG 05-19-09/32
Growing the installed base: EnergyNew product: WindGlobal footprint: Saudi Arabia
� Remote monitoring
� Upgrade kits
� Grid efficiency
� Built services shop
� Launch proprietary technology
� Fuel flex
Competitive advantage Incremental growth
Turbinesinstalled2006-10F
Long-termservicerevenue
150+ $2B+
Windinstalls2006-10F
Long-termservicerevenue
11K+ $1B+
JRI EPG 05-19-09/33
Healthcare: services beyond the IB
+ Expand share in EMR & HIE+ Expand clinical offerings+ Grow globally
+ Expand asset management+ Leverage lean � care delivery+ Drive technology enabled
patient flow solutions+ $1-5MM+ opportunity per
hospital
Market is ready for expanded GE approach
Healthcare IT$17B
Growth:8%+
HealthcareSolutions$18B
Growth:7%+
$35B
Hospital enterpriseHealth InformationExchange (HIE)Physician officesClinical systems
Asset managementCare delivery excellenceCulture driven performanceService line innovationConsumables
Segments GE today Focus
~$1.5
~$1.0
($ in billions)
Market driver:customer
productivity
JRI EPG 05-19-09/34
Position for global growth
Differentiated global strategy
Growth
Build on strong positions in resource rich regions
($ in billions – Industrial revenue)
2008
Resource rich
China/India
Developed(Europe/Japan)
~$60
22
10
28
++
++
–
Priorities
Sustain strong customer relations with global team
Localize & build for long-term growth
Leverage reputation asworld’s best partner
JRI EPG 05-19-09/35
New partnerships � in region/for world
�Commercial Finance JV imminent
�AVO partnership finalized
� Ecomagination Centre of MasdarCity
�Growth in Aviation & Energy
�Healthcare IT partnership
� Jointly funded R&D
�Capabilities aligned to regional & global needs
“China SOE game changers”
� Build O&G compressors/pumps & expand to local segments
� Partner to build civil aviation systems for China’s next generation of commercial aircraft
� Diesel engines & spare parts; explore e-loco partnership & adjacencies
� Co-development of Smart Grid products and technologies
Energy
Aviation
Rail
Oil & Gas
Goal: partner with national champions locally … go global together
JRI EPG 05-19-09/36
Win in big themes
“Affordable healthcare”“Clean technology”
“Green is green” “Health is wealth”
� Play in world’s biggest markets� Utilize GE’s broad capabilities� Drive technology & innovation� Benefits … customer, investor, employee, public
ecomagination + healthymagination
JRI EPG 05-19-09/37
Position in essential themes
Lead in clean energy
$17
~$25
$6
'04 '08 '10F
Revenues
� R&D leadership
� Reputation/brand
� Saved $0.5B by reducing carbon footprint
� Customer partnerships
� 72+ products� Big pipeline
ecomagination($ in billions)
JRI EPG 05-19-09/38
For customersInvest $6B to launch 100+ innovations that lower cost, increase access and improve quality by 15%. Focus on efficient technologies, healthcare IT, more access and consumer-driven health
For employeesDrive better employee health through “Healthy Worksite” program to increase wellness and competitiveness; target annual cost increases to less than rate of inflation (CPI)
For investorsAchieve long-term healthcare organic growth of 2-3x GDP; grow healthcare “value gap” from $500MM today to higher levels in the future
For publicBe transparent … partner with others … engage thought and policy leaders
Utilize GE’s technical breadth, global position & financial strengthto support healthcare with cost, access & quality targets
'08 '09E '15F
� Get ahead of healthcare changes
� Build the GE brand
~$0.5B+
++
GE value:healthcare earnings –cost of healthcare
healthymagination
JRI EPG 05-19-09/39
Strong leadership team
P&L leadershipFunctional excellence Strong culture
Engineers
� Sciences depth
� Product discipline
� Systems capable
�Global integration
� Benchmark
35,000
�Deep domain�Globalization� Financial accountability
235
60
Bench Leaders
� Top 500 leaders
+ 20 years with GE
+ Global & diverse
+ Long term comp
+ High retention
+ Domain experts
Cornerstone of execution Know how to win Committed to win
Function by function:continuous improvement
Creating value
JRI EPG 05-19-09/41
GE metrics vs. peer group2008 industrial organic
revenue growth
GE
Peers
4
8(%)
2008 margins
GE
Peers
14.615.6
(%)
2008 return on capital
GE
Peers
12.1
14.8(%)
2008 revenue per employee
GE
Peers
294
566($K)
Peers include Whirlpool, Disney, News Corp., United Technologies, Honeywell, Siemens, Philips, ABB, Rolls Royce, Alstom
2X
+270 bps.
+100 bps.
2X
JRI EPG 05-19-09/42
Creating value
A better GE
2008 Cycle New world
� Restore value in Financial Services
+ High return growth
+ Strong competitive position
� Outperform in Industrial
+ Better organic growth
+ Lower cost/higher margins
+ More services
+ Strong cash flow
Financial
Industrial
~$18B
Profitable
8
10 +0-5%
~1.5-2.0%ROI
+
Priorities
JRI EPG 05-19-09/43
What the world needs
+ Access to affordable, �
quality healthcare
+ Clean, renewable energy �
+ National productivity �
through low cost
transportation
GE
+ Content incredibly valuable �
+ Mid-market financing for small �
to medium sized companies
+ Capital to build infrastructure �
in growing communities
GE
GE will continue to provide products, services &financing to solve world’s toughest challenges