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Imagination at work William Blair Growth Stock Conference June 14, 2016 GE Oil & Gas Caution Concerning Forward-Looking Statements: This document contains "forward-looking statements" – that is, statements related to future events that by their nature address matters that are, to different degrees, uncertain. For details on the uncertainties that may cause our actual future results to be materially different than those expressed in our forward-looking statements, see http://www.ge.com/ investor-relations/disclaimer-caution-concerning-forward-looking-statements as well as our annual reports on Form 10-K and quarterly reports on Form 10-Q. We do not undertake to update our forward-looking statements. This document also includes certain forward-looking projected financial information that is based on current estimates and forecasts. Actual results could differ materially. Non-GAAP Financial Measures: In this document, we sometimes use information derived from consolidated financial data but not presented in our financial statements prepared in accordance with U.S. generally accepted accounting principles (GAAP). Certain of these data are considered “non-GAAP financial measures” under the U.S. Securities and Exchange Commission rules. These non- GAAP financial measures supplement our GAAP disclosures and should not be considered an alternative to the GAAP measure. The reasons we use these non-GAAP financial measures and the reconciliations to their most directly comparable GAAP financial measures are posted to the investor relations section of our website at www.ge.com . General Electric Capital Corporation (GECC) has been merged into GE and our financial services business is now operated by GE Capital Global Holdings LLC (GECGH). In this document, we refer to GECC and GECGH as “GE Capital”. We refer to the industrial businesses of the Company including GE Capital on an equity basis as “GE”. “GE (ex-GE Capital)” and /or “Industrial” refer to GE excluding GE Capital. Our financial services segment previously referred to as GE Capital is now referred to as Capital. GE’s Investor Relations website at www.ge.com/investor and our corporate blog at www.gereports.com, as well as GE’s Facebook page and Twitter accounts, contain a significant amount of information about GE, including financial and other information for investors. GE encourages investors to visit these websites from time to time, as information is updated and new information is posted.
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Page 1: GE Oil & Gas · PDF fileGE Oil & Gas Caution Concerning ... - Pipeline & Storage - Refinery - Petrochemical ... Leak detection and multiphase flow measurement HEALTHCARE

Imagination at work

William Blair Growth Stock Conference June 14, 2016

GE Oil & Gas

Caution Concerning Forward-Looking Statements: This document contains "forward-looking statements" – that is, statements related to future events that by their nature address matters that are, to different degrees, uncertain. For details on the uncertainties that may cause our actual future results to be materially different than those expressed in our forward-looking statements, see http://www.ge.com/investor-relations/disclaimer-caution-concerning-forward-looking-statements as well as our annual reports on Form 10-K and quarterly reports on Form 10-Q. We do not undertake to update our forward-looking statements. This document also includes certain forward-looking projected financial information that is based on current estimates and forecasts. Actual results could differ materially. Non-GAAP Financial Measures: In this document, we sometimes use information derived from consolidated financial data but not presented in our financial statements prepared in accordance with U.S. generally accepted accounting principles (GAAP). Certain of these data are considered “non-GAAP financial measures” under the U.S. Securities and Exchange Commission rules. These non-GAAP financial measures supplement our GAAP disclosures and should not be considered an alternative to the GAAP measure. The reasons we use these non-GAAP financial measures and the reconciliations to their most directly comparable GAAP financial measures are posted to the investor relations section of our website at www.ge.com. General Electric Capital Corporation (GECC) has been merged into GE and our financial services business is now operated by GE Capital Global Holdings LLC (GECGH). �In this document, we refer to GECC and GECGH as “GE Capital”.� We refer to the industrial businesses of the Company including GE Capital on an equity basis as “GE”. “GE (ex-GE Capital)” and /or “Industrial” refer to GE excluding GE Capital. Our financial services segment previously referred to as GE Capital is now referred to as Capital. � GE’s Investor Relations website at www.ge.com/investor and our corporate blog at www.gereports.com, as well as GE’s Facebook page and Twitter accounts, contain a significant amount of information about GE, including financial and other information for investors. GE encourages investors to visit these websites from time to time, as information is updated and new information is posted.

Page 2: GE Oil & Gas · PDF fileGE Oil & Gas Caution Concerning ... - Pipeline & Storage - Refinery - Petrochemical ... Leak detection and multiphase flow measurement HEALTHCARE

© 2016 General Electric Company - All rights reserved

We provide cutting edge technology and service solutions throughout the value chain

U P S T R E A M M I D S T R E A M D O W N S T R E A M

~40,000 EMPLOYEES

~$16.5B REVENUES ’15

-  Subsea -  Offshore -  Onshore

-  LNG -  Pipeline & Storage

-  Refinery -  Petrochemical

Improving the health & productivity of your operations from extraction to end of use.

© 2016 General Electric Company - All rights reserved

Digital solutions

2 Investor Meeting | 14 June 2016

Page 3: GE Oil & Gas · PDF fileGE Oil & Gas Caution Concerning ... - Pipeline & Storage - Refinery - Petrochemical ... Leak detection and multiphase flow measurement HEALTHCARE

© 2016 General Electric Company - All rights reserved

Industry outlook

Industry driving to better project execution, lower total cost of ownership & increased productivity

(a- GE O&G analysis based on Rystad, IEA, IHS

Longer-term … growth themes endure

Subsea & Offshore needed to meet demand 247

17285

153

’18 ’17 ’16 ’15

Forecast Quest Base case May ’16

Onshore well count 211713

28

’16 ’15 18 ’17

Forecast Spears ‘000s

RoW U.S.

Gas gaining share

NAM unconventionals key to supply

Supply growth ’15-’25 CAGR-a)

~1.5%

~2%

~5%

Total ~5% LNG

15131118

’18 ’17 ’16 ’15

Near-term … cycle unfolding

20

40

60

80

100

120

0 2 4 6 8 10 12 14 16 18 20 22 24

’07-’11

’97-’00

’85-’88

’14 to date

Months after peak

Brent price indexed peak = 100

Subsea tree awards

3 Investor Meeting | 14 June 2016

Page 4: GE Oil & Gas · PDF fileGE Oil & Gas Caution Concerning ... - Pipeline & Storage - Refinery - Petrochemical ... Leak detection and multiphase flow measurement HEALTHCARE

TURBO MACHINERY Pumps and compressor technology

SOFTWARE CENTER Smart BOP and advanced controls

DIGITAL SOLUTIONS Leak detection and multiphase flow measurement

HEALTHCARE Diagnostic software imaging

AVIATION Valve coatings and advanced materials

GLOBAL RESEARCH CENTER Flow assurance and advanced riser technology

ENERGY CONNECTIONS Power transmission and distribution

POWER Water injection and processing

Continuously using the entire company toolkit … solutions for customers

SUBSEA SYSTEMS Subsea production equipment and services

Capitalizing on the GE Store at Oil & Gas

© 2016 General Electric Company - All rights reserved 4

Investor Meeting | 14 June 2016

Page 5: GE Oil & Gas · PDF fileGE Oil & Gas Caution Concerning ... - Pipeline & Storage - Refinery - Petrochemical ... Leak detection and multiphase flow measurement HEALTHCARE

See tutorial regarding confidentiality disclosures. Delete if not needed. Title or Job Number | XX Month 201X 5

•  Operators •  EPCs •  System Integrators

•  Consultants •  Data Providers

DESIGN BUILD OPERATE

Leading the digital revolution … from reservoir to refinery

PREDIX SECURITY

O P E R A T I N G S Y S T E M

P A R T N E R S

D E V E L O P E R S

~11,000

Asset Performance Management

Production Optimization

A P P S

5

© 2016 General Electric Company - All rights reserved Investor Meeting | 14 June 2016

Page 6: GE Oil & Gas · PDF fileGE Oil & Gas Caution Concerning ... - Pipeline & Storage - Refinery - Petrochemical ... Leak detection and multiphase flow measurement HEALTHCARE

© 2016 General Electric Company - All rights reserved

Outcome-based digital ecosystem Partnering across the value chain and providing transformative solutions on Predix

PREDIX

OPERATE: ASSET PEFORMANCE MANAGEMENT Drive reliability & availability of equipment, minimize total cost of ownership, and reduce operational risks

DESIGN & BUILD Build digital into the engineering, procurement & construction process Reservoir engineering

modeling & capital planning

System 1

Optimized plant operations & condition driven maintenance

LNG Equipment Reliability Analysis

EXPLORE

DRILL

PRODUCE

TRANSPORT

TRANSFORM

Offshore Reliability & Availability

PRODUCTION OPTIMIZATION Optimize production operations, maximize production levels, minimize costs

Partnership for reservoir driven production optimization

Field Vantage

Intelligent Pipeline Solutions

Investor Meeting | 14 June 2016 6

Page 7: GE Oil & Gas · PDF fileGE Oil & Gas Caution Concerning ... - Pipeline & Storage - Refinery - Petrochemical ... Leak detection and multiphase flow measurement HEALTHCARE

© 2016 General Electric Company - All rights reserved

Cost execution in down cycle

7 Investor Meeting | 14 June 2016

Product cost-out Global supply chain optimization

Sustainable cost-out actions through down cycle … gross margin drivers

100% +10%

Prior standard

Cost

Volume under

absorption

(30)%

Sourcing base

Design Changes

(19)%

(12)%

Specs Logistics

Commonality

~50%

New standard

cost

•  Driving savings through global supply base

•  Cross-functional teams driving design optimization

•  Deep catalog simplification as part of process

Cost & optimization …

â 20%

2014 2016

•  Consolidating capability … investing in multi-modal facilities to leverage GE footprint

•  Brilliant Factories, Talamona, Italy: Automated robotics line, 30% reduction in lead times, predictive approach with data collection & software

… enhancing through Digital Thread

Rooftops

Onshore product example

Page 8: GE Oil & Gas · PDF fileGE Oil & Gas Caution Concerning ... - Pipeline & Storage - Refinery - Petrochemical ... Leak detection and multiphase flow measurement HEALTHCARE

© 2016 General Electric Company - All rights reserved

Product & projects cost-out … embedded in operating processes

8

Yielding results … helping customer lower cost/bbl

Investor Meeting | 14 June 2016

ü  Redesigned workspace … cross-functional teams in collaboration zones

ü  Deployed broad tools & training … Lean, FastWorks

ü  Rigorous tracking

ü  Strong engagement with suppliers

ü  Customer collaboration … RealTrack

ü  GE Store support … expertise

… enablers

Clear targets aligned to market needs & “should cost” mindset

Cost as a process …

Evaluate market position

• Benchmark • Win-Loss • Teardowns

Assess Gap and build Target

• Share & Margin •  “Should Cost”

Cross-functional Roadmaps

Measure, Control & adjust

• Launch, Measure, Learn, Iterate

• Design-to-Cost •  “Workout” • 3P

• Customer input • Forecasts

Define Top Products/projects

Page 9: GE Oil & Gas · PDF fileGE Oil & Gas Caution Concerning ... - Pipeline & Storage - Refinery - Petrochemical ... Leak detection and multiphase flow measurement HEALTHCARE

© 2016 General Electric Company - All rights reserved

Broad services portfolio

© 2016 General Electric Company - All rights reserved

Investor Meeting | 14 June 2016

Continued backlog growth in down cycle … more in pipeline

Services backlog

+16%

1Q15 1Q16

($ in billions)

$13.8

$11.9

Key wins

Subsea Systems & Drilling Industry first performance based CSA … 10 years GE Energy Financial Services support

Turbomachinery Solutions 20+ year service agreement Follow-up to Sabine Pass $1B 4Q14

Turbomachinery Solutions SapuraKencana GE Oil & Gas Services Floating LNG long term maintenance agreement

9

Page 10: GE Oil & Gas · PDF fileGE Oil & Gas Caution Concerning ... - Pipeline & Storage - Refinery - Petrochemical ... Leak detection and multiphase flow measurement HEALTHCARE

© 2016 General Electric Company - All rights reserved

Product spot light

10 Investor Meeting | 14 June 2016

Continuing to invest in new technology

Composite flexible risers

SeaPrimeTM Subsea MUX BOP Control System

•  20% savings on total installed cost

•  30% lighter, deeper Water & Higher Pressures

•  FHC in 3000m water depth

•  FastWorks & Aviation technology

•  3x higher availability than existing systems

•  Increased reliability through controls & data

•  Simplified maintenance … hours to minutes

•  Prevent costly stack pulls

Page 11: GE Oil & Gas · PDF fileGE Oil & Gas Caution Concerning ... - Pipeline & Storage - Refinery - Petrochemical ... Leak detection and multiphase flow measurement HEALTHCARE

© 2016 General Electric Company - All rights reserved

Focused on what we can control

Investor Meeting | 14 June 2016

Continuing to execute with flexibility … disciplined capital allocation

� Strong partnership with customers … through any cycle

� Power of GE Store … product & services offerings + global supply chain

� Driving cost-out … $1B+ ‘15 & ‘16 … protecting future growth areas

� Gross margin improvement … systematic product/project cost-out programs

2016 outlook

~(15)-(20)%

~(30)%

Revenue Op profit

11


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