GE Energy – Meeting Global DemandsJim SuciuVice President, Global SalesGE Energy

2

Global trends …

Population Energy security EnvironmentConsumption

… Create big challenges

3

And the challenges … drive the technology

• High fuel prices …require higher efficiency

• Energy security …requires more diverse solutions

• More stringent environmental standards … require lower emissions, increased use of renewables and nuclear

4

Global demand growth

Russia’s power shortage threatens growth

Power outage hits Kuwait City

Namibia could face electricity rations

5

Power generation landscape … next 10 years

Source: GE Energy PG Marketing

N. America China

RO Asia

India

W. Europe

Middle East / Africa

Latin America

E. Europe & FSU

Total capacity additions – GW (2006 – 2015)

NuclearRenewablesHydroCoal Gas/Oil

TOTAL

821243559

146

10 year avg annualcap adds (GW)

6

Growth driven by wind and

small hydro

Growing demand for renewables …

Source: REN21, Renewables 2005 Global Status Report, EER2006, BTM 2005 Marketbuzz-’06 & PGV Analysis. Excludes large hydro

‘05 renewable installed capacity (GW)

• Renewable technology … only 3% of electricity production today

• Solid double digit growth expanding global footprint

World AmericasEurope IndiaChina Asia MEA

182

37

72

2032

15 2

20042005

160

7

… Coal is still a primary energy source

Source: EIA

Recoverable coal reserves (million short tons)

0.521.9

55.5

279.5316.3 327.2

China126.2

India101.9

MiddleEast

S & Central America

Africa NorthAmerica

Europe &Eurasia

AsiaPacific

8

Affordable, reliable & environmentally responsible

Meeting big challenges … with big solutions

Driving Cost of Electricity Down

Effic

ienc

y

Relia

bilit

y

Emissions

EfficientDiverseNuclearCoalGasWindOil GeothermalBiomassHydroSolar

NuclearCoalGasWindOil GeothermalBiomassHydroSolar

+

9

6.8

4.2

Technology diversity is critical

Cost for new build … COE (cents/kWh)

Wind

7.8

Coal Gas

6.6

Nuclear

Capital

O&M

Fuel

Source: GE internal

10

6.8

4.2

Technology diversity is critical

Cost for new build … COE (cents/kWh)

WindCoal Gas

6.6

Nuclear

6.8

ESBWR

Multi MWLMSH SystemTM

FBIGCC

Proprietary GE solutions

Source: GE internal

11

+10X+3X

… Increasing investment

165+

20

76

2

‘06‘98

Products

New product launches

‘98

‘06‘98

New product investment

Services

ControlsMaterialsCombustion Aerodynamics

12

Technology excellence across the portfolio

Gas Cleaner Coal WindHydroSolar

Network Reliability

EnvironmentalServices

NuclearAsset Optimization

Biomass

13

Technology excellence across the portfolio

Cleaner Coal WindHydroSolar

Gas

• Volume back to ’03 levels

• Growing demand across the globe

– ‘03: 50% Non US

– ‘06: 90% Non US

• Investing heavily in services portfolio …renewals and productivity

– Non US CS penetration ~90%

Gas

Network Reliability

EnvironmentalServices

NuclearAsset Optimization

Biomass

14

EnvironmentalServices

Network Reliability

NuclearBiomass

Technology excellence across the portfolio

HydroSolarGas

Cleaner Coal

• Increasing License activity worldwide …refinery & petrochemical focus

• Poland ‘Center of Excellence’ …driving technology in Europe

WindCleaner Coal

Asset Optimization

15

Gas

Technology excellence across the portfolio

Cleaner Coal HydroSolar

Wind

• ’06 orders:- $3B US- $1B ROW

• Reliability improvement 88% - 97%+

• Capacity commitments through ’08 … global reach

Wind

Network Reliability

EnvironmentalServices

NuclearAsset Optimization

Biomass

16

Cleaner Coal

Technology excellence across the portfolio

WindHydroSolar

Biomass

• Renewable energy consumption up by 60% by 2030 … $1.6 trillion investment

• Biomass growing 4% annually …Jenbacher growing 5x

• Growth regions … North America, EU, India, China & Brazil

Gas

Network Reliability

EnvironmentalServices

NuclearAsset Optimization

Biomass

17

Cleaner Coal

Technology excellence across the portfolio

Network Reliability

EnvironmentalServices

Nuclear

WindHydro

Asset Optimization

Biomass

SolarGas

Nuclear

• Part of the global GHG solution

• Aggressive new build targets …>100 GW by 2025

• ESBWR design certification progressing with NRC

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Energy growth drivers

• Grow across the portfolio …across the world

• Coal/IGCC and nuclear progress continuing but significant GT CC needs for next decade

• Strong demand for renewables continues

• Services revenue growth…CS backlog $32B

• NPI investment up 30% in ’07’05 ’06E

Global Infrastructure investments bring big opportunities for growth

Revenue

Op Profit

$17

$2.7

~$3.0

~$19($ in Billions)

~13%