September 2009 Investor Update

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September 2009 Investor Update Powered By Docstoc
					  September 2009
  Investor Update

September 3, 2009

To the Investment Community,                                                                 Business highlights
I hope you had a great summer.                                                               GE Technology           page 2
                                                                                             Infrastructure
General Electric Company announced on August 4, 2009 that it had reached a settlement
with the United States Securities and Exchange Commission (SEC), without admitting           GE Energy               page 3
or denying allegations of any wrongdoing, which concludes the SEC’s investigation of         Infrastructure
accounting issues at GE. This settlement relates to four accounting matters in 2002          GE Capital Finance      page 4
and 2003. GE has previously corrected for the effects of these matters in its financial
                                                                                             NBC Universal           page 5
statements in SEC filings made between May 2005 and February 2008. No further
corrections are required. Under the terms of the settlement, the Company consented to        Film release schedule   page 5
the entry of a judgment requiring it to pay a civil penalty of $50 million and to comply     Citizenship,            page 6
with the federal securities laws. Full Text Here                                             ecomaginationsm and
As of the end of August, GE Capital has completed all long-term debt funding for 2009,       healthymagination
while also pre-funding ~$26 billion in long-term debt for 2010. As of the end of the         GE Global Research      page 6
second quarter 2009, GE Capital had pre-funded $12 billion for 2010, as announced on
                                                                                             Upcoming investor       page 6
our July 17 earnings call.
                                                                                             events
As a reminder, we will be hosting a security analyst day on September 17 at the GE Global
Research Center located in Niskayuna, New York. The meeting will showcase technology
being developed at our Global Research Centers to help solve some of the world’s             Contact
toughest challenges. The program will be hosted by Mark Little – Senior Vice President,      Trevor A. Schauenberg
GE Global Research. Please click here for information related to the event.                  Vice President
                                                                                             Corporate Investor Communications
Our next earnings call will be on October 16. We will host a webcast to discuss third
quarter 2009 results. Please click here for information related to the event.                3135 Easton Turnpike
                                                                                             Fairfield, CT 06828
For presentations, news and other helpful information please visit our investor web site     USA
at http://www.ge.com/investor.
                                                                                             T 203 373 2424
Please see “GE reports” to keep informed about the latest company developments. We           F 203 373 2071
will update it regularly to share information and our perspectives on GE activities around   trevor.a.schauenberg@ge.com
the world. Please visit our web site at http://www.gereports.com/.

Regards,
     GE Technology Infrastructure
•	   GE Aviation announced entering into a Cooperative Research and Development
     Agreement with the Federal Aviation Administration. The government-GE Aviation
     collaboration will provide a variety of operational and technical assessments to
     support integration of Unmanned Aircraft Systems (UAS) into the National Airspace
     Systems including the assessment of Next Generation (NextGen) Trajectory-Based
     Operations. Full Text Here
•	   The Senographe® DS digital mammography system has been ranked as the
     #1 digital mammography system in the 2009 Top 20 Best in KLAS® Awards for
     Medical Equipment in the Digital Mammography category. Utah-based KLAS is an
     independent organization that surveys healthcare provider information in regard to
     healthcare products and services. Full Text Here
•	   GE Drivetrain Technologies, a unit of GE Transportation, and Chongqing XinXing
     Fengneng Investment Co., Ltd. announced the formation of a joint venture
     company to produce large diameter gears for the wind turbine industry. Chongqing
     XinXing Gear Co., Ltd. builds on 16 years of gear manufacturing experience in the
     automotive and motorcycle industries through its subsidiary company, Chongqing
     Xinxing Fengneng Co., Ltd., while GE Drivetrain Technologies has provided drive train
     components to the wind turbine industry since 2004. Under the terms of the joint
     venture, Chongqing XinXing Fengneng will be the majority owner, and the gears will
     be produced in a new manufacturing facility in Chongqing, China. Full Text Here
•	   GE Transportation and EuroMaint Rail announced an alliance to collaborate on
     rolling stock services and technology for the rail industry that will provide European
     rail customers with an unprecedented level of service capabilities. In addition to
     providing service for existing fleets, the alliance also will provide a strong regional
     service network for GE’s new European PowerHaul® Locomotive. The PowerHaul
     Locomotive is projected to cut fuel use by up to 9% compared to current operating
     fleet averages. GE will deliver the first PowerHaul Locomotives in the fourth quarter
     of this year to Freightliner Group Ltd. in the United Kingdom. Full Text Here
•	   GE Security announced that its Homeland Protection Business is executing delivery
     on a contract worth up to $13.5 million for MobileTrace handheld contraband
     detection systems. MobileTrace incorporates GE’s patented ITMS® (Ion Trap Mobility
     Spectrometry), or trace technology, into a highly portable device. ITMS explosives
     and narcotics detection sensitivity and reliability have already been proven in other
     GE Security trace-based products at military bases, border crossings, airports and
     other critical security checkpoints around the world. Full Text Here
•	   GE and FANUC announced on August 17 that the two companies have agreed to
     dissolve the GE Fanuc Automation Corporation joint venture. This agreement would
     allow each company to refocus its investments to grow its existing businesses and
     pursue its respective core industry expertise. GE and FANUC expect the transaction
     to be completed by the end of this year, subject to satisfactory customary closing
     conditions. GE will continue global investment in industrial automation and process
     control systems, software solutions and embedded computing. Full Text Here


September 2009 Investor Update                                                                 2
     GE Energy Infrastructure
•	   GE Energy has signed a $115 million, long-term service agreement with Fujian
     Jinjiang Gas Power Co. Ltd. that helps address the need for reliable and efficient
     power generation to support the rapid economic growth of Fujian Province
     in southeastern China. The nine-year agreement covers four Frame 9FA gas
     turbines at the Fujian Jinjiang plant, located on the coast of Taiwan Strait. The
     scope of GE’s service agreement with Fujian Jinjiang will include parts, services,
     repairs and training and will cover one major inspection period for the gas
     turbines. The agreement helps to ensure that the power plant will continue to
     meet its efficiency goals, making it one of the most efficient power stations in
     China. Full Text Here
•	   GE Energy has signed a multi-year service contract for more than US$45 million
     with Dubai Aluminium Company Limited (DUBAL), one of the world’s largest
     producers of premium quality aluminum. The agreement is designed to reduce
     the cost of aluminum production while maximizing the reliability and overall
     performance of 19 GE gas turbines that power the DUBAL production complex.
     The agreement covers the supply of parts, performance uprates, repairs and
     field services for planned outages for the gas turbines, over a period of seven
     years. It further reiterates the leading role that GE Energy plays in the industrial
     sector of the U.A.E. and the strong partnerships the company has forged with
     leading players across various economic sectors. Full Text Here
•	   GE Energy held a groundbreaking ceremony to announce the start of
     construction for GE’s new Power Technology Center in the Kaluga Region of
     Russia, 180 kilometers southwest of Moscow. The technology center further
     expands GE’s in-country capabilities to deliver its products and services to
     customers across Russia and the Commonwealth of Independent States (CIS)
     that are pushing to modernize their energy assets. GE’s initial investment in the
     Kaluga center is US$30 million, but that figure is expected to grow to $50 million
     by the time the facility is commissioned in late 2010. Full Text Here
•	   GE Oil & Gas announced that it has designed unique gas turbine generators
     that can operate in temperatures up to -60ºC for a power plant project at the
     Vankor oil field (Turukhansky district, Krasnoyarsk region) owned by Rosneft
     oil company. The 210 MWt gas turbine power station at the Vankor oil field will
     become the only complete source of power and heat used for life support and
     oil and gas production, as well as part of the first stage of the oil field’s launch
     into operation. As part of its continuing cooperation with Rosneft, GE Oil & Gas
     is supplying eight gas turbine generators based on MS5001PA gas turbines. To
     ensure reliable operation of the equipment in extreme climatic conditions, GE
     Oil & Gas has developed a special turbine design and used automated heating
     systems to transport and store the equipment on the site. Full Text Here




September 2009 Investor Update                                                              3
     GE Capital Finance
•	   GE Capital announced it led a $316 million accounts receivable securitization
     facility for SunGard Data Systems Inc., one of the world’s leading software and
     information technology services companies. The loan will be used for working
     capital needs. GE Capital Markets was sole lead arranger on the transaction.
     The financing is structured as an asset-based loan secured by certain trade
     accounts receivables. The facility may be increased to $500 million, subject to
     certain conditions. Full Text Here
•	   GE Capital, Restructuring Finance announced it led a $197 million revolving
     credit facility as part of a $242 million plan of reorganization financing for
     Spectrum Brands, a global consumer products company. The loan refinances
     an existing debtor-in-possession facility, and supports Spectrum’s exit from
     bankruptcy and their ongoing working capital needs. GE Capital Markets
     served as joint-lead arranger on the revolver. GE also provided interest rate
     risk management products and services. Full Text Here
•	   GE Capital, Corporate Finance announced it provided $150 million as part of
     a $1 billion revolving asset-based credit facility for Smithfield Foods, Inc., the
     world’s largest pork processor and hog producer. As previously announced
     by Smithfield Foods, the loan is a part of the company’s ongoing debt
     restructuring efforts. GE Capital Markets served as joint-bookrunner.
     Full Text Here
•	   GE Capital, Corporate Finance announced it provided a $50 million plan of
     reorganization credit facility to Sportsman’s Warehouse, an outdoor sporting
     goods retailer. The loan was used upon the company’s recent emergence from
     Chapter 11 to refinance the $85 million debtor-in-possession financing GE
     Capital provided the company in March. Based in Midvale, Utah, Sportsman’s
     Warehouse sells equipment, apparel, footwear and accessories for hunting,
     fishing and camping. Full Text Here
•	   GE Money and ABC Warehouse, a leading consumer electronics and
     appliance retailer, announced a multi-year agreement to provide consumer
     financing through the company’s store locations and online stores. The new
     private label credit program, launched July 1, is backed by GE Money’s Sales
     Finance unit and provides flexible financing promotions and extended terms,
     including no-interest periods of up to 12 to 18 months. ABC Appliance stores
     include ABC Warehouse, Hawthorne Appliance, U.S. Appliance.com and
     Mickey Shorr, a mobile electronics retailer. The company has more than 58
     stores in Michigan, Ohio and Indiana. Full Text Here




September 2009 Investor Update                                                            4
     NBC Universal
•	   Universal Pictures and The Weinstein Company’s co-production of “Inglourious Basterds,” directed by
     Quentin Tarantino and starring Brad Pitt, was the No. 1 film in the world for the weekend of August 21-23.
     The film grossed over $37 million at the domestic box office and over $27 million internationally in the 22
     countries where it opened.
•	   The National Football League and NBC Sports announced a two-year extension of their broadcast
     partnership under which NBC will remain the home of “Sunday Night Football” for the 2012 and 2013
     seasons. As with the original agreement, NBC will broadcast 16 regular season “Sunday Night Football”
     games, each season’s “NFL Opening Kickoff” Thursday night primetime game, both Wild Card Saturday
     games and preseason games in primetime. Full Text Here
•	   USA Gymnastics has extended its partnership with NBC Sports for broadcast television coverage
     through 2012. In addition, USA Gymnastics has named Universal Sports as its official cable and digital
     media partner for this quadrennium. Full Text Here
•	   MSNBC Interactive News LLC has acquired Chicago-based EveryBlock, a ground-breaking site that has
     pioneered the local news space by offering news and information down to the neighborhood block level
     in 15 cities. The acquisition answers the growing consumer demand for more local news, underscores
     msnbc.com’s commitment to innovative newsgathering and advances the site’s unique ability to deliver
     a fuller spectrum of news. EveryBlock, which will continue as an independent brand, offers msnbc.com’s
     highly engaged “news explorers” another avenue to discover perspectives on local news, entertainment
     and information. Full Text Here
•	   Telemundo and Billboard teamed up to launch the ultimate online destination for Latin music lovers,
     accessible at both www.billboardenespanol.com and Telemundo.com’s music tab. The official site of
     Billboard en Español, which is already available for fans, provides unlimited and exclusive access to both
     Latin and non-Latin music. Powered by Telemundo.com, the music site, which reaches 1.8 million users,
     features interactive web tools, such as reader polls and forums, allowing visitors the ability to comment
     on every single piece of content, and share the content with their friends. Full Text Here
Ratings highlights:
•	   8.7 million viewers watched Rumbo al Mundial: Mexico vs. USA World Cup Qualifying soccer match on
     the family of Telemundo networks. The match, which aired on Wednesday, August 12, was the best-ever
     delivery for Rumbo al Mundial and the highest rated telecast in the history of Telemundo, averaging
     more Adults 18-49 than any program in network history. Full Text Here
•	   Bravo posted another record setting week (week of 8/17/09) fueled by the premieres of its hit series “Top
     Chef” and “Flipping Out,” the finales of “Top Chef Masters” and “Miami Social,” the topical series “Watch
     What Happens: Live” and the fourth episode of “The Real Housewives of Atlanta,” in Prime with its
     highest delivering week ever in all demographics, according to Nielsen Media Research. This was Bravo’s
     best week ever among adults 18-49 (616,000 viewers) and total viewers (952,000), and the second
     consecutive week of record numbers among total viewers. Full Text Here

•	   NBC’s “The Tonight Show with Conan O’Brien” has won the week of August 10-14 over all broadcast
     and cable competition in the key late-night ratings category of adults 18-49. Conan has now ranked #1
     in 18-49 versus “Late Show with David Letterman” on 50 of 50 nights since his June 1 debut (includes
     one tie, excludes the week of June 29-July 3, when “Tonight” was re-titled due to delays for Wimbledon
     coverage). Conan has won every week thus far in 18-49 versus “Late Show” by margins of 29 percent or
     more (excludes Wimbledon week). Full Text Here


Upcoming films
•	   September 18:          Love Happens (Aaron Eckhart, Jennifer Aniston)
•	   October 9:             Couples Retreat (Vincent Vaughn)


September 2009 Investor Update                                                                                     5
     Citizenship, ecomagination and
     healthymagination
•	   For the 15th year running, GE Healthcare employees in the Milwaukee-
     area participated in what is the largest, single-day GE volunteering event in
     the world by helping 15 Milwaukee Public Schools and 5 Waukesha Public
     Schools get ready for the new school year. Over 2,500 volunteers from local
     GE businesses worked with nearly 600 MPS and WPS staff members to help
     paint, clean, organize and provide landscaping for local schools. Full Text Here
•	   Our video series shot on the ground in Africa this summer has chronicled the
     often-difficult task of getting critical healthcare equipment to conflict and
     poverty-stricken communities in Chad. GE’s medical equipment — which was
     successfully delivered to three targeted hospitals — is helping to provide care
     to nearly 200,000 people, including 30,000 refugees from Darfur. In 2008,
     GE and the GE Foundation donated $1.2 million to address the Darfur crisis,
     which has displaced thousands of people internally — and into neighboring
     Chad and Central African Republic. Full Text Here
•	   GE Healthcare and Moffitt Cancer Center announced an alliance aimed to
     optimize efficiency and care capacity, and in less than eight months, Moffitt
     has added capacity for 900 new cancer procedures and additional operating
     margin. This partnership has resulted in improved surgical processes,
     including predictable scheduling, on-time starts, and increasing room
     turnover. Without added operating rooms or hours, the Center was able to
     free capacity of 900 patients and sustains improvements. Full text here



GE Global Research
•	   GE, in partnership with the Shanghai government, announced that it has developed a research tool to detect China’s
     most deadly occupational health disease, pneumoconiosis. The new computer aided detection (CAD) technology was
     approved by the Shanghai government and will allow it to be further tested at a local hospital in China. Full Text Here



Upcoming investor events (subject to changes)
•	   Sept 17*:   GE Global Research Security Analyst Meeting
•	   Oct 16*:    GE 3rd Quarter 2009 Earnings Webcast
*Meeting will be webcast. Webcast replays are retained on our web site for 14 days. Podcasts are also available by
accessing the following link: http://www.ge.com/rss/investor.xml




September 2009 Investor Update                                                                                                 6

				
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