UBS Conference September 20, 2007, London Healthcare Re-imagined Joe Hogan, President and CEO, GE Healthcare UBS September 20, 2007 Joe Hogan, GEHC Page 2 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 arise from the behavior of financial markets, including fluctuations in interest rates and commodity prices; from future integration of acquired businesses; from future financial performance of major industries which we serve including, without limitation, the air and rail transportation, energy generation and healthcare industries; from unanticipated loss development in our insurance businesses; and from numerous other matters of national, regional and global scale, including those of a political, economic, business, competitive or 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.
Transcript
UBS ConferenceSeptember 20, 2007, London
Healthcare Re-imagined
Joe Hogan, President and CEO, GE Healthcare
UBSSeptember 20, 2007
Joe Hogan, GEHCPage 2
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 arise from the behavior
of financial markets, including fluctuations in interest rates and commodity prices;
from future integration of acquired businesses; from future financial performance of
major industries which we serve including, without limitation, the air and rail
transportation, energy generation and healthcare industries; from unanticipated
loss development in our insurance businesses; and from numerous other matters of
national, regional and global scale, including those of a political, economic, business,
competitive or 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.
UBSSeptember 20, 2007
Joe Hogan, GEHCPage 3
Invest & deliver: what it means to GE
Revenue Earnings Returns
2-3XGDP
10%+
20%
Invest in leadership businesses
Growthas a
process
Reliable execution & financial discipline
Great people & team
Safe & reliable growth company
“Built for the future”
+ Infrastructure technology + Demographics+ Developing markets + Value from liquidity+ Digital connections + Scarcity/environmental
• Minimises /cost/meds wasted on false positives/negatives
• Improves our ability to manage disease
GE enables dramatic increases in specificity & sensitivity
Osteoporosis: 40% - 50% reduced risk when caught early
Early detection:
13% CAGR
2000 2004 2007E
New technologies +
Market Strength
GE Healthcare
How we compete
� Industry-leading technology
�Unmatched global, product and services reach
�World-class execution and process rigor
�Growth through disease focus
�Success in emerging markets
�Delivering clinical efficacy and efficiency
Positioned for continued growth
Medical Diagnostics
Diagnostic Imaging
Clinical Systems
Service
Healthcare IT
Life Sciences
$7
~$17
= Growth
$13
(Revenue $ in billions)
UBSSeptember 20, 2007
Joe Hogan, GEHCPage 11
GE Healthcare: GE’s most global business
14,970 / 32%Employees
7,994 / 17%Employees
21,277 / 46%Employees
Americas Europe & MEA Asia
Strong global commitment
Wauwatosa US
ArlingtonHeights US
Oslo Norway
KjellerBarrington US
Boston US
Burlington US
Lombard US
Seattle US
Plano US
Spain
Uppsala Sweden
Biosciences Japan
Japan NMP
Japan Hino
Buc FranceBangalore India
Cardiff UK Wuxi ChinaJuarezEl Paso
Solingen Germany
Princeton US
Gloucester UK
PiscatawayUS Pollards
Wood UK
Amersham UK
Helsinki
MunichGermany
Milwaukee US
Haifa Israel
Lindesnes Norway
Japan TAC
Pressure areas (25%)
US: DRA impact: CT, MR, PET, MDx
FDA Consent Decree: OEC
Japan market
OEC 3rd PartyApproval Q3/Q4
New hospital spending +18%
Imaging Technology & Productivity
Current & Future Growth DriversInternational
Middle East+ 28%
India & SEA +39%
Life Sciences
Bioprocess +13%
MDX Int’l
DaTScan +42%
Visipaque +24%
Ultrasound
Portable +76%
X-Ray
Digital Mammo +109%
Flat Panel +7%
GEHC Financials 2007: trends 2008
1H’07
Growth areas (75%)
MDX Int’l 18%
Life Sciences 15%
Int. DI equipment 14%
X-Ray 11%
U/S 10%
Monitoring & Cardio 8%
$7.7B
$1.8
$5.910%
(22)%
Sales
Binary Performance 1H’ 07 Some pressure to continue in 08US DRA Imaging �Japanese market �
Global Growth with cost out and revenue focus
UBSSeptember 20, 2007
Joe Hogan, GEHCPage 13
Leading products
Growing IT footprint
Seizing leadership
GE Healthcare in 2007: delivering
� Cancer: Sponsoring US Comprehensive Cancer Taskforce on role of PET/CT� Cancer: Leading customer conversion to digital mammo from analog� Cardio: Introduction of MAC400: Cardiology solution for developing countries� Neuro: Cortex ID launched – improves PET/FDG Alzheimer’s diagnosis
� Sprint collaboration to deliver wireless to N. American hospitals � US Dept of Defense: GEHC Centricity™ in 100+ hospitals� Scripps Healthcare: GEHC Centricity in 5 Hospitals, 13 clinics
� #1 market share position in Compact Ultrasound*� Acquires Wave Biotech, expanding biopharmaceutical offerings � Launch of new phototherapy system for infant jaundice
� FDA approves newest mobile mammo system� FDA approves volume PET/CT application for Oncology� FDA clearance: CARESCAPE™ for mobile patient monitoring
Strategic Goals Accomplishments
Accelerate Disease Focus
� 1st in MR and CT Service IMV ServiceTrak rates� CT Leadership recognition by Frost & Sullivan� Saudi Arabia: new manufacturing plant planned
* Not in the US
Innovate
Lead HealthcareIT
Drive New Markets
Win withCustomers
*Based on reported revenues
Putting customers first
UBSSeptember 20, 2007
Joe Hogan, GEHCPage 14
6%CAGR
Diagnostic Imaging: great technology, positioned for growth
$5.9
2003 2007E
~$7.2
Global leadership helping doctors and radiologists see inside the human body to diagnose disease*
# 1 in CT, # 1 in X-Ray RAD/R&F
# 1 in MR# 1 in PET
(Revenue $ in billions)
Growth Drivers:
• Clinical studies to support reimbursement
• Target development at key disease segments
• Strong service & distribution execution
• One GE Healthcare go to market
• Selling Enterprise value of GE
High growth procedures
CT
Heart �50%
Virtual Colonoscopy �20%
MR
Brain �17%
Breast �50%
PET
Cancer �37%
Brain �43%
NUC
Lymph Study �5%
Tumor Localization �5%
� Rapid MI growth… PET and NM adoption as standard of care
� Growing MR adoption for Breast, Stroke, Abdomen and Pelvic imaging
� CT growth from Cardiology, Neurology and Oncology
� X-Ray… 70%+ of total procedures
2006
CAGR
12%7%
8%
CTMR
MI
XR47%
Digital
Global procedures growing
2003
696
2009E
~915
Procedures(MM)
815
PET
VCT
MR
NUC
UBSSeptember 20, 2007
Joe Hogan, GEHCPage 16
Technology evolution advancing care
Huge improvements in Imaging
Dramatic increases in imaging sensitivity & specificity
Cardiac CT 1979 Breast MR 1998 PET (FDG) 1995 Ultrasound 2002
Lightspeed VCT NOW
Breast MR NOW
PET/CTNOW
Ultrasound NOW
UBSSeptember 20, 2007
Joe Hogan, GEHCPage 17
7%CAGR
Medical Diagnostics: setting the industry standard
Growth Drivers:
• Global leadership, scale, distribution
• Breadth across disease areas
• Unique and novel compounds
• World-class R&D: accelerated clinical trials
• Manufacturing excellence/regulatory
• Launch of one new imaging agent per year
$1.5
2003 2007E
~$2.0
(Revenue $ in billions) World’s leading supplier of contrast media used in scans#1 Nuclear
