"December 2009 Investor Update"
December 2009 Investor Update December 18, 2009 To the Investment Community, On November 17, GE and its Chinese partners that represent some of that country’s key infrastructure development goals announced the signing of a series of “Company to Country” agreements aimed at promoting collaboration between GE and Chinese public Business highlights and private sector aviation, energy and transportation organizations. The announcements were made as part of “GE’s Clean Technology Week in China” activities. Spanning GE’s GE Technology page 2 industrial portfolio, the announcements include initiatives in the following areas: Infrastructure • Avionics joint venture, cleaner coal energy, advancing high-speed rail technologies, GE Energy page 3 transportation locomotive assemblies order, engine joint venture Infrastructure To read the full press release, click here. To learn more about GE’s announcements in GE Capital Finance page 4 China, visit http://www.ge.com/chinanews. NBC Universal page 5 GE and Comcast have signed a definitive agreement to form a joint venture that will be 51 percent owned by Comcast, 49 percent owned by GE and managed by Comcast, pending Film release schedule page 5 regulatory approval. Please see page 5 of this letter for more information regarding the Citizenship, page 6 announcement, including how to access the related press release and investor webcast ecomaginationsm and from December 3. healthymagination The GE Capital Investor Webcast was held on Tuesday, December 8. We are committed GE Global Research page 6 to providing transparency at GE Capital, and this webcast provided an update to the two presentations we had hosted earlier this year. You can access the event information directly Upcoming investor page 6 here: http://www.ge.com/investors/events/event_id12082009.html events The GE Annual Outlook Investor Meeting took place in New York City on Tuesday, December 15. Jeff Immelt, Chairman and CEO, hosted our annual review of GE’s performance and Contact business outlook. For more information on the event please visit our investor website: http://www.ge.com/investors/events/event_id12152009.html Trevor A. Schauenberg Vice President On December 15, the GE Board of Directors declared a quarterly dividend of .10 per Corporate Investor Communications outstanding share of its common stock. The fourth quarter dividend is payable January 25, 2010, to shareowners of record at the close of business on December 28, 2009. The 3135 Easton Turnpike ex-dividend date is December 23, 2009. Full Text Here Fairfield, CT 06828 USA For presentations, news and other helpful information please visit our investor web site at http://www.ge.com/investor. T 203 373 2424 F 203 373 2071 Please see “GE Reports” to keep informed about the latest company developments. We’ll email@example.com update it regularly to share information and our perspectives on GE activities around the world. Please visit our web site at http://www.gereports.com/. The GE Investor Communications team wishes all of our investors a happy and safe holiday season. Regards, GE Technology Infrastructure The following announcements were made as a part of “GE’s Clean Technology Week in China” activities: • GE Transportation announced that it has reached an agreement with CSR Qishuyan Locomotive Co., Ltd. to provide 300 locomotive assemblies for China HXN5 Mainline locomotives produced by CSR Qishuyan with Evolution® Series diesel engines. The agreement follows an order of 300 Evolution Series China Mainline Locomotives originally placed in 2005. According to the agreement, GE Transportation will supply 300 locomotive assemblies that will be manufactured in Erie and Grove City, Pennsylvania, USA and shipped to China. The first batch of the locomotive assemblies is scheduled for delivery at the beginning of 2010. Full Text Here • GE and China’s Ministry of Railways announced that they signed a memorandum of understanding (MOU) to jointly advance high-speed rail (HSR) opportunities in the United States. This collaboration will allow GE Transportation to be the first U.S. locomotive manufacturer to more effectively compete for high-speed rail projects against global competitors. In addition, the partnership would accelerate GE’s passenger rail technologies. Full Text Here • GE Transportation announced the formation of a joint venture company with CSR Qishuyan Locomotive Co., Ltd., a unit of China South Locomotive and Rolling Stock Corporation Limited (CSR), to develop, build and service GE’s Evolution® Series locomotive diesel engines in China. The joint venture is scheduled to launch operations at the end of 2011, including the assembly, testing and overhaul of engine components such as power assemblies and turbochargers in China. During the second phase, starting in 2013 engines as well as components will be assembled, tested and overhauled. Full Text Here • GE Aviation of the United States and AVIC Systems of China announced agreement on forming a new joint venture company to develop and market integrated avionics systems for commercial aircraft customers. Jeff Immelt, Chairman and CEO of GE and Lin Zuoming, president of AVIC, signed a framework agreement for open architecture avionics. Definitive documentation is being put in place with the goal of launching a new JV company by mid-2010, subject to receiving all required regulatory approvals. Full Text Here More recent announcements from GE Technology Infrastructure: • GE Transportation announced it has signed an agreement with America Latina Logistica (ALL) to deliver 10 new AC44i locomotives in 2009 for freight transport. ALL operates the largest independent general cargo railway in South America with a fleet of more than 1,000 locomotives and 21,000 km of railways connecting Brazil and Argentina. Full Text Here • GE Healthcare focuses on healthymagination at RSNA 2009. Read the press release highlighting products, breakthroughs and innovations in the following areas: – New healthymagination ultrasound products; system expansions and breakthroughs – Changing the face of MR: healthymagination introduces new products and innovations – New innovations in CT – Mammography innovations – Surgery innovations – Image-guided interventional care innovations • GE Healthcare announced the installation of Russia’s first high-definition computed tomography (CT) scanner, GE Healthcare’s flagship Discovery CT750HD, at the Center of Medical Rehabilitation by the Russian Ministry of Health in Moscow. The Center of Medical Rehabilitation is the first hospital in Russia to join leading hospitals around the globe in installing this powerful groundbreaking high-definition CT technology. The scanner sets a new standard for CT clarity, allowing clinicians to diagnose quickly and confidently using significantly less x-ray radiation than previous CT scanners. Full Text Here December 2009 Investor Update 2 GE Energy Infrastructure • GE announced it has received a $1.4 billion contract from independent power producer Caithness Energy to supply wind turbines and provide services for an 845-megawatt (MW) wind farm project to be located in Oregon. The wind farm, called Shepherds Flat, has received the majority of the necessary government permits to operate and is ready to be built. When completed it will be larger than any wind farm currently in operation around the globe. Full Text Here • Marking a significant step toward the deployment of “cleaner coal” technology in China, GE and Shenhua Group Corporation announced that they have agreed to a framework for an industrial coal gasification joint venture which would combine GE’s expertise in gasification and cleaner power generation technologies with Shenhua’s expertise in building and operating coal gasification and coal-fired power generation facilities, to advance “cleaner coal” technology solutions in China. The announcement was made as part of “GE’s Clean Technology Week in China” activities. The memorandum of understanding, which was signed as part of the US-China clean energy cooperation signing ceremony in Beijing, would result in a joint venture company, in which GE and Shenhua would execute a strategic vision for expanding to improve cost and performance of commercial scale gasification and integrated gasification combined cycle (IGCC) solutions. This includes industrial coal gasification applications in China as well as jointly pursuing the deployment of commercial scale IGCC plants with carbon capture. Full Text Here • In an effort to meet Missouri’s ongoing renewable energy goals, Wind Capital Group is developing the state’s largest wind project, Lost Creek, with the support of GE’s 1.5-megawatt wind turbine technology. When it enters commercial service in the spring of 2010, the project will have the capacity to generate 150 megawatts (MW) of electricity, enough to power more than 50,000 homes. GE is supplying and servicing 100 of its 1.5-MW units for the Lost Creek Wind Project, which is located in DeKalb County, Mo. The wind turbines will be delivered in 2009 and 2010. GE will provide operation and maintenance services for the project for five years. Full Text Here • GE Oil & Gas, in consortium with Rockson Engineering Nigeria, has been awarded a $230 million contract by the Federal Government of Nigeria for the installation and commissioning of a dual fired (low pour fuel oil/gas) 150-200MW power plant in Kaduna, Nigeria. The contract will include the design, manufacture, supply and testing of eight GE gas turbines in the 15-20MW-range. Rockson Engineering Nigeria will supply engineering, balance of plant, erection, commissioning, site works and a 132Kw sub-station. Full Text Here • GE Oil & Gas technology has been selected by Stogit S.p.A., a Snam Rete Gas company focused on gas storage and modulation services, to upgrade two gas storage facilities in Northern Italy, bringing both sites into compliance with new emissions targets. GE Oil & Gas will supply GE10-2 gas turbines, Dry Low NOx (DLN) emissions systems and additional equipment for the conversion of the gas storage plants. In addition to a GE10-2 gas turbine with a DLN combustion system for each site, the scope of GE’s contract includes the supply of dry gas seals, new ‘plug and play’ Mark Vle controls panels, modification to the buildings, installation and field services, and training on the GE10-2 DLN packages. The upgrade for the first unit is scheduled for completion by May 2011. GE plans to finish the installations at both plants in 151 days, with no plant shutdowns expected. Full Text Here December 2009 Investor Update 3 GE Capital Finance • GE Capital has fully funded its long-term debt funding plan for 2009 and 2010. We plan to pre-fund $20-$25 billion of 2011 funding needs during 2010. Cost of funds have significantly improved. We continue to execute on alternative funding including a recent $500 million Sukuk transaction (Shariah compliant debt offering) with a five year 3.875% fixed coupon. • GE Capital, Corporate Retail Finance announced it is co-collateral agent for a $625 million asset-based credit facility for The Bon-Ton Stores, Inc., a department store retailer. The loan will be used to refinance existing debt and for working capital needs. GE Capital Markets served as joint lead arranger. Full Text Here • GE Capital, Corporate Retail Finance announced it was a co-lender for a $500 million asset-based credit facility to Saks, Inc., a department store retailer. The loan will be used for working capital needs and general corporate purposes. GE Capital Markets served as joint lead arranger. Full Text Here • GE Energy Financial Services in partnership with Horizon Wind Energy LLC — owned by EDP Renewables (NYSE Euronext: EDPR) — is investing $117 million in an Oklahoma wind farm. Horizon Wind Energy’s Blue Canyon V wind farm is a 99 MW expansion of a 225-megawatt wind farm. In operation since last month, this project was built with GE 1.5-megawatt turbines and supplies its power to the Public Service Company of Oklahoma under a 20-year contract. Wind makes up nearly 80 percent of GE Energy Financial Services’ more than $4 billion renewable energy portfolio. The company plans to expand its renewable energy portfolio to $6 billion by the end of 2010, including investments in wind, solar, biomass, hydroelectric and geothermal power generation projects. Full Text Here • GE Money, Sales Finance continues to be one of the most active providers of consumer financing to retailers big and small across the United States. Heading into the traditional holiday shopping season, Sales Finance has added a number of new programs and announced renewed or expanded relationships with many long-term partners, representing more than 30,000 business locations nationwide. Over the past month, Sales Finance announced new agreements including: Edwin Watts Golf, The Tile Shop, Oreck, and 1-800-Mattress. Extensions have also been completed with a number of partners including: Husqvarna, Bassett Furniture, KTM Power Sports, Steinhafel’s Furniture, Bernina, and Pep Boys. Full Text Here • GE Capital, Commercial Distribution Finance (CDF) announced that it will acquire over $200 million of dealer floorplan financing receivables for the Arctic Cat dealer network in the USA. GE Capital will be acquiring the portfolio from Arctic Cat’s former financier, Textron Financial Corporation and is now the exclusive provider of inventory finance for Arctic Cat under a multi-year program. Full Text Here December 2009 Investor Update 4 NBC Universal • Comcast (NASDAQ: CMCSA, CMCSK) and General Electric (NYSE: GE) announced that they have signed a definitive agreement to form a joint venture that will be 51 percent owned by Comcast, 49 percent owned by GE and managed by Comcast. The joint venture, which will consist of the NBC Universal (NBCU) businesses and Comcast’s cable networks, regional sports networks and certain digital properties and certain unconsolidated investments, will be well positioned to compete in an increasingly dynamic and competitive media and digital environment. The combination of assets creates a leading media and entertainment company with the proven capability to provide some of the world’s most popular entertainment, news and sports content, movies and film libraries to consumers anytime, anywhere. The joint venture will provide consumers the broadest possible access to content, and support high-quality, award-winning content development across all platforms including film, television, and online. It will be anchored by an outstanding portfolio of cable networks and regional sports networks that will account for about 80 percent of its cash flow, including USA, Bravo, Syfy, E!, Versus, CNBC and MSNBC. The joint venture will be financially strong with a robust cash-flow-generation capability. Under the terms of the transaction, GE will contribute to the joint venture NBCU’s businesses valued at $30 billion, including its cable networks, filmed entertainment, televised entertainment, theme parks, and unconsolidated investments, subject to $9.1 billion in debt to third party lenders. Comcast will contribute its cable networks including E!, Versus and the Golf Channel, its ten regional sports networks, and certain digital media properties, collectively valued at $7.25 billion, and make a payment to GE of approximately $6.5 billion of cash subject to certain adjustments based on various events between signing and closing. More information on the announcement can be found at the following: – Press release: http://www.genewscenter.com/content/detail.aspx?ReleaseID=9206&NewsAreaID=2 – Additional media materials are available at www.ge.com/newnbcu, www.comcast.com/nbcutransaction and https://www.nbcumv.com/mv/. – GE hosted a webcast with the financial community on December 3, 2009, at 8:30 a.m. ET to discuss the announcement with GE Chairman and CEO Jeff Immelt, GE Chief Financial Officer Keith Sherin and NBCU President and CEO Jeff Zucker. A replay of the webcast and the presentation materials are available at www.ge.com/investors. Caution Concerning Forward-Looking Statements This document contains “forward-looking statements” – that is, statements related to future, not past, events. In this context, forward-looking statements often address expected future business and financial performance and financial condition, and often contain words such as “expect,” “anticipate,” “intend,” “plan,” “believe,” “seek,” “see,” or “will.” Forward-looking statements by their nature address matters that are, to different degrees, uncertain. These statements are made on the basis of the views and assumptions of management. Particular uncertainties that could cause actual results to be materially different than those expressed in these forward-looking statements include: the timing of, or ability to obtain, necessary regulatory and governmental approvals on acceptable terms; the timing and completion of the financing of NBC Universal on contemplated terms before the closing of the proposed joint venture; the receipt of an investment grade rating from the rating agencies of the proposed joint venture between GE and Comcast; adverse developments in the business and operations of NBC Universal, including potential disruption that may make it more difficult to maintain business and operational relationships; and the successful combination, operation and overall performance of the joint venture post closing. For GE, an additional uncertainty includes its ability to redeploy its capital into high-growth technology businesses. For Comcast and NBC Universal, additional uncertainties include the ability to integrate the programming assets of Comcast and NBC Universal in the new joint venture; the ability of the new joint venture to create popular programming, to develop new digital products and services, and to succeed in the highly competitive media industry; the ability of the new joint venture to generate attractive financial returns and strong cash flows; and, the effect of any conditions that regulators may impose in permitting the transaction to proceed. These uncertainties may cause actual future results to be materially different than those expressed in these forward-looking statements. None of GE, Comcast nor NBC Universal undertake to update these forward-looking statements. Upcoming films • December 25: It’s Complicated (Meryl Streep, Steve Martin, and Alec Baldwin) • January 8: Leap Year (Amy Adams, Matthew Goode) December 2009 Investor Update Citizenship, ecomagination and sm healthymagination • OMV Gas GmbH of Austria, a 100% subsidiary of OMV Group, has again selected integrated compressor line (ICL) technology from GE Oil & Gas. Based in Vienna, OMV is Europe’s leading integrated energy company covering with its operations all activities along the oil and gas value chain. GE will supply a further three ICL units, which are designed to offer operating and environmental benefits, for an OMV gas compression facility in Baumgarten, Austria. This latest contract follows an agreement announced in July 2009, for GE to provide initial three ICL units for OMV’s Neustift compression station, part of the extension of the Penta West Gas Pipeline. The three, six-megawatt ICL units for Baumgarten will be manufactured and tested at GE Oil & Gas’ facilities in Le Creusot, France, and will be shipped to the project site by the end of 2010. They are expected to enter commercial operation by mid-2011. Driven by electricity rather than gas, ICL units save energy and avoid associated CO2 emissions. The ICL is an ecomagination product of GE Oil & Gas. Full Text Here • GE is honoring Cogentrix Energy, LLC with a GE ecomagination Leadership Award for achievements in water reuse. Cogentrix’s 120-megawatt power plant in Battleboro, N.C. has implemented a solution to conserve an estimated 3 million gallons of water annually, or the equivalent to approximately 22 percent of its current water usage. GE provided technology and expertise that enabled the plant to use recycled cooling tower water for lime slakers and pug mills. GE’s patented technology, including GenGard chemistry, will enable Cogentrix to reuse more than 3 million gallons of water on an annual basis, reducing the need to tap local fresh water sources and eliminating blowdown discharged into the Tar River. The solution has also increased the efficiency of the cooling tower system, by chemically reducing scaling and fouling, and operational costs have been reduced. Full Text Here GE Global Research • GE Global Research announced a $2 million award from the National Institute of Environmental Health Sciences (NIEHS), part of the National Institutes of Health to develop wearable RFID sensors to alert people to the presence of environmental chemical agents in the air and sample exhaled breath to serve as an early indicator of disease. RFID sensors are commonly used to track a wide variety of items, from products in a supply chain to baggage at an airport. GE’s sensors are unique in that they combine RFID tracking with an acute gas sensing capability, which can detect the presence of potentially harmful chemical agents in the air. Because these sensors can be made at a size smaller than a penny, they can be part of a typical identification badge and serve as a pre-emptive or early warning for people about the presence of chemical agents in the air. Full Text Here Upcoming investor events (subject to changes) • January 22*: GE Fourth Quarter and Total Year 2009 Earnings Webcast *Meeting will be webcast. Webcast replays are available on our website. Podcasts are also available by accessing the following link: http://www.ge.com/rss/investor.xml December 2009 Investor Update 6