citi industrials june 2016 v10 - ge.com · 2020. 1. 7. · ent ct 1999 2000 2004 2009 2010 2011...

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Imagination at work 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. Technology Leadership Shaping a Digital Industrial Company Vic Abate, June 14

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Page 1: Citi Industrials June 2016 v10 - GE.com · 2020. 1. 7. · ent ct 1999 2000 2004 2009 2010 2011 2012 2013 2015 ON • 0 • ‘15 • globally • e - ums • s A Y © . . © . 4

Imagination at work

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.

Technology Leadership Shaping a Digital Industrial Company

Vic Abate, June 14

Page 2: Citi Industrials June 2016 v10 - GE.com · 2020. 1. 7. · ent ct 1999 2000 2004 2009 2010 2011 2012 2013 2015 ON • 0 • ‘15 • globally • e - ums • s A Y © . . © . 4

2© 2016, General Electric Company. All Rights Reserved.

SEE the futureMOVE the futureCREATE the future

Our job atGlobal Research

A high tech infrastructure company … Technology +

Page 3: Citi Industrials June 2016 v10 - GE.com · 2020. 1. 7. · ent ct 1999 2000 2004 2009 2010 2011 2012 2013 2015 ON • 0 • ‘15 • globally • e - ums • s A Y © . . © . 4

GE launches firstIndustrial lab in 1900

3© 2016, General Electric Company. All Rights Reserved.History of differentiation with technology

Page 4: Citi Industrials June 2016 v10 - GE.com · 2020. 1. 7. · ent ct 1999 2000 2004 2009 2010 2011 2012 2013 2015 ON • 0 • ‘15 • globally • e - ums • s A Y © . . © . 4

Local R&D talentDelivering global impact

1999 2004 20112009 2012 201320102000 2015

15 YEARS OF GLOBALIZATION

• Tradition of Innovation established in 1900

• 2,700 patents in both ’14 and ‘15

• ~100,000+ visitors a year globally

• Learning culture - technical forums

• 3,000+ PhDs, engineers and scientists

NISKAYUNA, NY

© 2016, General Electric Company. All Rights Reserved.© 2016, General Electric Company. All Rights Reserved.

4

GERMANY SAN RAMON

DETROIT ISRAEL OKLAHOMABRAZILCHINASAUDI

ARABIAINDIA

Positioned to lead and deliver for the future

Page 5: Citi Industrials June 2016 v10 - GE.com · 2020. 1. 7. · ent ct 1999 2000 2004 2009 2010 2011 2012 2013 2015 ON • 0 • ‘15 • globally • e - ums • s A Y © . . © . 4

© 2016, General Electric Company. All Rights Reserved.

9 Ideas9 Expertise9 Speed9 Scale

HEALTHCARE

TRANSPORTATION

AVIATION

POWER

ENERGYCONNECTIONS

RENEWABLE ENERGY

OIL & GAS

GLOBALRESEARCH

CENTER

GLOBALGROWTH

ORGANIZATION

DIGITAL

CULTURE &SIMPLIFICATION

Our unique advantage

Leaning into The GE Store

CURRENT

5

Page 6: Citi Industrials June 2016 v10 - GE.com · 2020. 1. 7. · ent ct 1999 2000 2004 2009 2010 2011 2012 2013 2015 ON • 0 • ‘15 • globally • e - ums • s A Y © . . © . 4

LEAP

HA gas turbine

Tier 4

PET/MR

Predix

GRC Delivered

• 15% lower fuel burn• 10,500 orders & commitments

• Additive fuel nozzle• Next gen blade• CMC Shrouds

• 60+% Efficiency, +25 GT MW’s• 24 unit orders backlog

• Advanced blade cooling• Micromixer / Combustion• Advanced coatings

• 75%+ NOx reduction• 1355 Evolution orders

• Combustion optimization with simulation

• Sensors & controls

• Best in class PET/MR• Light weight, low He MR

• Closed cryogen magnet• Molded coils• Silicon photomultipliers

• Up to 14% fuel efficiency gainfor railroads

• Trip Optimizer

Value to GE

Global ResearchDriving better GE businesses…

6© 2016, General Electric Company. All Rights Reserved.… through better products and services

Page 7: Citi Industrials June 2016 v10 - GE.com · 2020. 1. 7. · ent ct 1999 2000 2004 2009 2010 2011 2012 2013 2015 ON • 0 • ‘15 • globally • e - ums • s A Y © . . © . 4

Solar inverter, LED driver, wind converter, MRI, UPS, Off Highway Vehicle

100Ceramic Matrix Composites

1$

InvestmentSince 1986

B $148BLEAP

$29BGEnx

Silicon Carbide

$

InvestmentSince 2006

$3BMM

Current | EC | Healthcare Transportation | Aviation

The power of The GE Store

© 2016, General Electric Company. All Rights Reserved.

Revenue potentialacross GE in 2020

- LED

- MRI

- UPS

7

Next Gen HA gas turbine

Orders to date

- Solar inverter

- Wind converter

- Off Highway Vehicle

&

Aviation | Power

Technology transcending the company

Page 8: Citi Industrials June 2016 v10 - GE.com · 2020. 1. 7. · ent ct 1999 2000 2004 2009 2010 2011 2012 2013 2015 ON • 0 • ‘15 • globally • e - ums • s A Y © . . © . 4

Combustor• Additive manufacturing

• Maintenance inspection

• Combustion dynamics& emissions technology

Advanced materials, coatings, & cooling technologies• Thermal barrier coatings

• Single-crystal alloys

• Ceramic Matrix Composites

• Analytical tools

Compressor• Large scale airfoil aerodynamics

• Field-replaceable blades

• Multiple-stage inlet control

Product cost• Should-cost process & derivatives

• PO variance report

• “Positioning for Growth” supplier summits

Aviation GE Oil & Gas GE Global ResearchCorporate…Audit Staff, etc.

PERFORMANCE &FULFILLMENT SPEED

PERFORMANCE &AVAILABILITY

PERFORMANCE & LIFE

PROFITABILITY &COMPETITIVENESS

8

GE Store at work…HA Turbine

© 2016, General Electric Company. All Rights Reserved.Delivering world-leading products in half the time

Page 9: Citi Industrials June 2016 v10 - GE.com · 2020. 1. 7. · ent ct 1999 2000 2004 2009 2010 2011 2012 2013 2015 ON • 0 • ‘15 • globally • e - ums • s A Y © . . © . 4

Additive technologies

Materials: Additive Materials Lab… writing the recipe book

© 2016, General Electric Company. All Rights Reserved.9

GE Aviation Additive FacilityAuburn, AL

Additive Dev CenterEvandale, OH

GE Power Advanced Manufacturing FacilityGreenville, SC

GE Center forAdditive Technology AdvancementPittsburgh, PA

Transforming manufacturing to deliver better performance at lower cost

CFM’s LEAP Engine First engine with 3D-printed fuel nozzles

PowerNew combustion parts

Healthcare3D printing for Ultrasound probes

Design: 65 parts to 1, faster machines, enable larger parts

Software: Virtual inventory, Predix, 3MF Consortium… Standard file formats

Build Scale Innovate

Page 10: Citi Industrials June 2016 v10 - GE.com · 2020. 1. 7. · ent ct 1999 2000 2004 2009 2010 2011 2012 2013 2015 ON • 0 • ‘15 • globally • e - ums • s A Y © . . © . 4

GRC Next Chapters… Technology +Launched three new interdisciplinary labs

EFFICIENT capital deployment

EXPAND product margins

Drive sustained DIFFERENTIATION

Product Break-Outs

Product Management

as Science

Variable Cost Productivity

• Connect technology to customer value• Understand physics and business

models across entire life cycle

• Disciplined, company-wide approach• Find efficiencies in supply chain

• Science based product differentiation• Step function shift in competitiveness

10© 2016, General Electric Company. All Rights Reserved.Physics + business models… More efficient, faster tech adoption

Page 11: Citi Industrials June 2016 v10 - GE.com · 2020. 1. 7. · ent ct 1999 2000 2004 2009 2010 2011 2012 2013 2015 ON • 0 • ‘15 • globally • e - ums • s A Y © . . © . 4

Collection to Consumption

ENERGY

Quality of Life

Origin to Destination

Tons x kmPassenger x km Speed

Patient outcomes

BTUs harvested

Electrons delivered

Mass moved

Years of quality life

$5T $4T $10TTRANSPORTATION HEALTHCARE

11© 2016, General Electric Company. All Rights Reserved.

At the intersection of markets & technologiesBuilding industrial ecosystem models

Identify opportunities for growth and disruption

Page 12: Citi Industrials June 2016 v10 - GE.com · 2020. 1. 7. · ent ct 1999 2000 2004 2009 2010 2011 2012 2013 2015 ON • 0 • ‘15 • globally • e - ums • s A Y © . . © . 4

• Enable the digital economy

• See – Think - Do

• Software defined

• Differentiator for the Industrial Internet

Industrial brainsDigitize manufacturingIndustrial Killer App

• Optimize operations

• Digital thread

• 1% increase in productivity = $500 MM savings for GE’s manufacturing operations

DIGITAL TWIN CONTROLSBRILLIANT FACTORY

• Optimize asset performance

• Analytics + Predix = Value

• Virtual model for every physical asset

Defining GE’s digital industrial futurePhysical + Digital

12© 2016, General Electric Company. All Rights Reserved.Powered by PREDIX – across all GE businesses

Page 13: Citi Industrials June 2016 v10 - GE.com · 2020. 1. 7. · ent ct 1999 2000 2004 2009 2010 2011 2012 2013 2015 ON • 0 • ‘15 • globally • e - ums • s A Y © . . © . 4

Better Businesses

Better GE Store

Better GRC

• Best practices• Leverage expertise• Drive disruption• Capital efficient

R&D

• Accelerate technology adoption

• Product differentiation

• Expand service offerings

• Local talent, global impact

• Physical + Digital advantage

• Learning culture, and external network

13© 2016, General Electric Company. All Rights Reserved.

Global ResearchDriving key outcomes for GE’s future

See, move, create the future

Page 14: Citi Industrials June 2016 v10 - GE.com · 2020. 1. 7. · ent ct 1999 2000 2004 2009 2010 2011 2012 2013 2015 ON • 0 • ‘15 • globally • e - ums • s A Y © . . © . 4

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