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GE Energy Management Power Conversion

We’re at work making change happen

June 4th, 2013

Driving growth in energy shifting scenario

Joe MastrangeloPower Conversion CEO

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Energy trends … key highlightsEnergy Efficiency

ElectrificationNew Tech frontiers

Regulations Big data

Multiple drivers to energy shifting

Global electricity demand to increase of 70% by 2035

2/3 of the economic potential untapped by 2035

Subsea, unconventional, smart grid, power quality , …

Sustainable CO2 price policy, Electricity Market Design, Trade Policy, Labour market …

Large time-series data sets to drive competitiveness and growth

Source: IEA World Energy Outlook 2012

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GE Strategy

xA belief in a better way

A relentless drive to invent

and build things that matter

+ =We look at what the

world needs

A WORLD that WORKS BETTER

Building, Powering, Moving & Curing

More valuable portfolio Strategic imperatives

Leadership in technology

Expand services � analytics

Invest in growth regions

Simple + competitive cost structure

+1

2

3

4

Valuable Specialty Finance

Strength

Cash

PremierInfrastructure

company

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Value creation examples

• Subsea structures• Large block Heavy Duty Gas Turbine• Distributed power• Mining equipment• Marine systems

Leadership in Technology

(in $B)

1

Energy relevant R&D component

LNG solutions

Customized offerings• Leadership position in large-scale LNG

• Remote module capability

Mini-LNG solutions• Flexible solutions 10-250k gallons per day

• Mini-LNG plant Recent acquisition

Marine solutions

Customized offerings• � 10-20% operating costs

• High accuracy control

• � 10% efficiency gain

• Integrated system … risk reduction

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Build on electrification trend

420700

2010 2040

500

Efficiency gain will support 40% of

global energy demand

180280

2010 2040

Electricity demand ↑55%

Efficiency gain

Market trends GE solutions

Electricity demand (QBTUs)

Global energy demand (QBTUs*)

+55%

* QBTUs=Quadrillion of British Thermal Units, Source: Exxon Mobil,

** CO2 savings based on 8MW scenario, all savings are calculated on a yearly basis

Primary sources

1

Improve efficiency up to 30%

• ↓ grid disruptions from heavy-duty loads

• Grid code compliance

Secure power quality

• Predict behavior of electrical networks

• Solutions to avoid instability

Optimize availability

• Secure & reliable critical systems control

• Incident reporting & remote diagnostics

Automation & Control

• Variable speed elect. integr. technology

• Energy savings & ↓ CO2 emissions

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Industrial Internet2

A world that works better, faster, cleaner and cheaper

Technology Enablers

Intelligent

Machines

Big Data

& Analytics

People at

WorkCloud

Control Systems

MaterialScience

Software

Power of 1%

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Investing in growth regions

Growth Regions(Industrial Segment Revenue – in $ billion)

Capability

+ 15 technology/innovation centers

+ 200 manufacturing/service sites

+ 10,000 commercial resources

$ 34

$ 37

++

‘11 ‘12 ’13 E

Transformation(in $ million)

1. Create acquisition value

Brazil orders New Central Europe

$50 $500 Manufacturing base

2. Improve and diversify earnings through cycles% growth region revenue

Healthcare 14% 28%Transportation 25 52Aviation 22 35

3. Enhance strategic positioning …. ~2x Executive level

570

‘08

~900

’13 E

‘03 ‘13 E

3

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Simple + CompetitiveSimpler @ lower cost Strengthen competitiveness

Customer rules … reducing cycle time

to enhance customer touch points

Focus on customers value added investment

Global shared services for enabling functions

Building multi-modal factory, local contents increase (e.g. India)

Maximize local regulatory framework

… flexibility and speed as business

enablers

Accelerate strategy cycles, closer

connection with operations & customers

for new product development

4

FastWorks

Global Supply Chain

RegulationsCost Management

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GE Competitive positioningEnergy Efficiency

Electrification

RegulationsBig data

Leveraging the energy shifting

Integrated solutions and flexible power systems

Tap the supply side potential

Expanding the boundaries through R&D

Local organization development : Global Growth Organization (GGO) Minds & Machine

New Tech frontiers