1 / Calhoun1 / Calhoun
Global Growth & Emerging Markets
John RiceVice Chairman
President & CEO, GE Infrastructure
GE strategy
+ CFOA
+ Margins
This is the way we win
GE advantage …scale + breadth + depth
Revenue Earnings ROTC
10%+
20%
2-3 x GDP
Safe + reliablegrowth company
• Leadership business … with unique technical + market positions
• Aggressive financial discipline driving high margins + returns
• Innovative corporate initiatives drivingorganic growth
• Vibrant talent + strong team
Focused on faster growth and higher return
• Launch growth platforms … $12B+
• Invest in healthcare, services, energy, infrastructure
• Grow with technology … IGCC, NDT
Focus … long-term growth rateExit … slow growth businesses
'90-'03 '04-’06
Faster growth Industrial
5%
8%
'00 '06E
Higher return Financial
15%
21%
Focus … ROE enhancementExit … Insurance
• Global Consumer Finance
• Financial verticals
• Higher returning businesses
OrganicGrowth rate
ROE
Strategic actions Strategic actions
2-3X GDP
’07+
… with a simplified structure
Industrial
$33B
Healthcare
$15B
NBCU
$15B
Infrastructure
$42B
CommercialFinance
$21B
Consumer Finance
$19B
(‘05 Revenue - $B)
�Market leadership� Domain knowledge
� Technology advantage� Financial strength … AAA
Clear process for growth …
Clear goal: organic growth of 2-3X GDP
Execute forGrowth
Technology/Services
Customers
Globalization
Innovation
Growth Leaders
Commercial Excellence
• Technology leadership … product & service
• Domain expertise … market perspective
• Fulfillment capability … Lean & Six sigma
• Partnerships … customer, supplier & government
• Resources & decision making … with accountability
Globalization enablers …
GE uniquely positioned to serve the global markets
GE competitive strengths
Localized
… for our customers and shareholders
Installed base
CSA / upgrades /inspections & repairs
New growth platforms, customer productivity
Global footprint
Business model to deliver …
Differentiate with technology
Win lifecycle service
System optimization
Everywhere in the world
Clear results … GE
$107
‘01
($ in billions)
Revenue
‘06
Domestic
Developing
~$163
Developing countries doubled in 5 years
Developing
DomesticDeveloped
InternationalInternational
Developed
~41%~45%
Why we feel good …
Strong environment
Positioned to win
Huge growth potential
Already having success
Environment …
Production limited
+150 GW per year
EVO demand strong
CapEx up 30%+
Emerging markets
10%+ growth
Strength across the board
Aviation
Energy
Rail
Oil & Gas
Water
Healthcare
• Leading
technology
• Lifetime
service
• Global
footprint
GEAdvantage
Environment
#1
#1
#1
#1
#2
#1
Position
Developing markets … huge potential
’95 - ’04 ’05 - ’14
Investment
~$900B
~$3T
A priority everywhere
• Population growth and increased living standards fuels growth
• China … Middle East … India … Russia … Eastern Europe … Latin America
Energy
Transportation
Clean Water
Medical
Energy ... Oil & Gas
Aviation ... Rail
Water
Healthcare
Needs GE solutions
Transformation …Global trends
• Population growth
• Resource scarcity & security
• Global trade flow
• Standard of living
• Infrastructure needs
Long term infrastructure development cycle
• Aviation … China backlog at ~2.7B
• Energy … ’06 turbine shipments 85%+ int’l
• Oil & Gas … Downstream 41% of business
• Water … developing markets ~35%
• Healthcare … emerging markets 15% +
• Rail … 44% of ’06 equip orders are int’l
GE
Rail …China
� 300 Mainline deal … $454MM
� Distributed power … $44MM
� 80 OHV AC drive systems … $62MM
Europe
� Signaling Phoenix deal in Italy … $40M
� New energy BioFuel engine LOI … $25M
� Shipping Sheltam Loco’s (S. Africa) … 10 Units
� 30 engines for Power Gen (Sakr) … $12M
CIS Kazakhstan/Russia
� 150 Mods … $113MM
� 310 EVO’s … $654MM
� New OHV OEM for 150T AC truck
Latin America
� 1st EVO’s in Mexico + Svc … $474M
� 30 M&S engines … $12M
� ’07 Loco’s Colombia & MRS … $50MM
India
� Signaling & train control Pipeline … $100M
� 10 Marine engines for ABG … $10M
Africa / Mid East
Winning in global markets
GE – Hitachi Nuclear
Dynamics
� Formalize partnership with long-term BWR strategic ally … Hitachi
� Focus on BWR technology & services; selective PWR activities
� Improve global position … Japan
� Capitalize on favorable economics
• Political environment still uncertain
• Working with several pot’l US partners
• Interest high … India … China … E. Europe
• Evolving consolidation … MHI & Areva … Toshiba + Westinghouse
20060109-7JRI BOD 11-03-06/2
Strong participation & partnership approach
Strategy
Summary …
GE uniquely suited to deliver in the global market
• Tremendous Infrastructure needs created by changing global trends … do not see a slowdown
• Capital there to fund growth … $$ being spent
• GE possesses the “enablers” to global growth
• GE is winning in the global market … will continue to
Agenda
Welcome & overview John Rice
International landscape Nani Beccalli
– GE in China Andy Solem
– GE in India TP Chopra
– Energy Jim Suciu
– Oil & Gas Claudi Santiago
– Water Jeff Garwood
– Healthcare Reinaldo Garcia
– GE Money Dmitri Stockton
Wrap-up/Q&A
Oil & Gas Plant Tour
Lunch
Depart for Airport - Qatar Flight