April 2010 Investor Update by gyvwpsjkko


									   April 2010
   Investor Update
April 30, 2010
                                                                                                                                             Business highlights
To the Investment Community,
                                                                                                                                             GE Technology                        page 2
On April 16, we announced GE’s first quarter 2010 earnings. Here are the highlights                                                          Infrastructure
(Continuing Operations Attributable to GE):                                                                                                  GE Energy                            page 3
•	EPS of $0.21 (First Call consensus EPS of $0.16), down 19%; earnings of $2.3 billion, down 18%
•	Company revenues of $36.6 billion, down 5%; Industrial sales declined 2%                                                                   GE Capital                           page 4

•	Losses, delinquencies and non-earning assets (ex. FAS 167) declined versus the prior quarter                                               NBC Universal                        page 5
•	Industrial cash flow from operations on track at $2.6 billion; $70 billion consolidated cash                                               Film release schedule                page 5
  and equivalents                                                                                                                            Citizenship,                         page 6
•	Industrial operating profit solid at 13.4%; ex. Olympics 14.7%, up 30 bps from 1Q ’09                                                      ecomaginationsm and
•	Total company orders of $17.1 billion, down 8%; total backlog steady at $174 billion
                                                                                                                                             GE Global Research                   page 6
•	2010 framework remains achievable with upside potential; we expect to grow earnings for
  the balance of 2010                                                                                                                        Recent investor                      page 6
The webcast replay and other relevant earnings materials are posted on our website.                                                          Upcoming investor                    page 6
Please click here to access the event.                                                                                                       events
For presentations, news and other helpful information please visit our investor website at
http://www.ge.com/investor.                                                                                                                  Contact
                                                                                                                                             Trevor A. Schauenberg
Please see “GE Reports” to keep informed about the latest company developments. We’ll                                                        Vice President
update it regularly to share information and our perspectives on GE activities around the                                                    Corporate Investor Communications
world. Please visit our website at http://www.gereports.com/.                                                                                3135 Easton Turnpike
                                                                                                                                             Fairfield, CT 06828
                                                                                                                                             T 203 373 2424
                                                                                                                                             F 203 373 2071

“Results are preliminary and unaudited. This document contains “forward-looking statements”- that is, statements related to future, not past, events. In this context, forward-looking
statements often address our 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. For us, particular uncertainties that could cause our actual
results to be materially different than those expressed in our forward-looking statements include: the severity and duration of current economic and financial conditions, including volatility
in interest and exchange rates, commodity and equity prices and the value of financial assets; the impact of U.S. and foreign government programs to restore liquidity and stimulate
national and global economies; the impact of conditions in the financial and credit markets on the availability and cost of General Electric Capital Corporation’s (GECC) funding and on our
ability to reduce GECC’s asset levels as planned; the impact of conditions in the housing market and unemployment rates on the level of commercial and consumer credit defaults; our
ability to maintain our current credit rating and the impact on our funding costs and competitive position if we do not do so; the soundness of other financial institutions with which GECC
does business; the adequacy of our cash flow and earnings and other conditions which may affect our ability to maintain our quarterly dividend at the current level; the level of demand
and financial performance of the major industries we serve, including, without limitation, air and rail transportation, energy generation, network television, real estate and healthcare;
the impact of regulation and regulatory, investigative and legal proceedings and legal compliance risks, including the impact of proposed financial services regulation; strategic actions,
including acquisitions and dispositions and our success in integrating acquired businesses; and numerous other matters of national, regional and global scale, including those of a political,
economic, business and competitive nature. These uncertainties may cause our actual future results to be materially different than those expressed in our forward-looking statements. We
do not undertake to update our forward-looking statements.”
“This document may also contain non-GAAP financial information. Management uses this information in its internal analysis of results and believes that this information may be informative
to investors in gauging the quality of our financial performance, identifying trends in our results and providing meaningful period-to-period comparisons. For a reconciliation of non-GAAP
measures presented in this document, see the accompanying supplemental information posted to the investor relations section of our website at www.ge.com.”
“Effective January 1, 2010, we reorganized our segments. We have reclassified prior-period amounts to conform to the current-period’s presentation.”
“In this document, “GE” refers to the Industrial businesses of the Company including GECS on an equity basis. “GE (ex. GECS)” and/or “Industrial” refer to GE excluding Financial Services.”
   GE Technology Infrastructure
•	 GE Transportation announced the next milestone in its long-term commitment to develop
   the railway infrastructure in the Republic of Kazakhstan by signing a Memorandum of
   Understanding with Kazakhstan’s Joint Stock Company Locomotiv (JSC Locomotiv) and
   Joint Stock Company Kurastyru Zauty (JSC LKZ) for 150 shunter locomotives. The first five
   shunter locomotives would be manufactured at GE Transportation’s Erie, Pennsylvania
   (USA) plant. After the prototypes are manufactured and validated, the additional shunter
   locomotives would be assembled at Joint Stock Company Kurastyru Zauty’s plant in
   Astana, Kazakhstan with kits from GE Transportation. Locomotive delivery is anticipated for
   2012. Read the press release.

•	 GE Aviation announced that it will create an Electrical Power Integrated Systems Research
   & Development Center (EPISCENTER) near Dayton, Ohio. The center will be directed at
   several markets including on- and off-highway hybrid and electric vehicles, more electric
   aircraft and marine applications. The center’s location will be announced later this year
   with a planned opening in 2012. This new center adds to GE’s leading research and
   development capabilities, which are focused on finding solutions to some of the world’s
   toughest challenges. Research employees at the center will join 2,800 researchers and
   employees at GE’s four global research facilities. Read the press release.
   Read the GE Reports story.

•	 GE Aviation is teaming with the U.S. Navy to develop and adopt technologies
   aimed at reducing the specific fuel consumption (SFC) for the Navy’s twin-engine
   F/A-18E/F Super Hornet fleet. The F414-GE-400 engine powers the F/A-18E/F
   and E/A-18G aircraft. Naval Air Systems Command (NAVAIR) awarded a $7.5
   million contract to GE in 2009, designating the F414-GE-400 engine for this
   Near Term Energy Efficiency Technology Demonstration and Research Project
   (under the American Recovery and Reinvestment Act of 2009). NAVAIR issued a
   $7.34 million modification in Feb. to continue the progress of this key initiative.
   Incorporation of SFC improvement technologies in the Navy’s F414 engine could
   result in an estimated projected annual fuel savings of nearly 2 million gallons.
   Read the press release.

April 2010 Investor Update                                                                       2
     GE Energy Infrastructure
•	   GE announced plans to invest approximately €340 million ($450 million) to develop or
     expand its wind turbine manufacturing, engineering and service facilities in four European
     countries—the United Kingdom, Norway, Sweden and Germany—signaling GE’s deep
     commitment to the promising European offshore wind sector. The expansion plans could
     equate to more than 2,200 jobs over the next decade. GE Energy plans to establish its
     offshore wind turbine manufacturing in the UK and will locate application and service
     engineering resources in the country. Read the press release. Read the GE Reports story.
•	   GE Energy is shipping two Frame 6B gas turbines for one of the largest cogeneration
     facilities in Portugal, Galp Energia’s Matosinhos Cogeneration Plant near Porto. Replacing
     older oil-fired technology at the site, the gas turbines will increase the plant’s efficiency and reduce its environmental
     impact in line with the Portuguese Government’s regulation to promote efficiency and reduce CO2 emissions. The
     new gas turbines are the third and fourth GE 6B gas turbines selected by Galp Energia to modernize power and
     steam production for its refineries in Portugal. The first two 6B machines recently entered commercial operation at a
     cogeneration plant that supports the Sines petrochemical industrial park. The GE Frame
     6B gas turbine is one of the most widely used gas turbines ever manufactured. More than
     1,100 of these units are in service or on order worldwide and have accumulated more than
     60 million operating hours in a wide range of applications. Read the press release.
•	   GE is working with the city of Yangzhou, China, to become a worldwide destination
     for energy efficiency, reliability and sustainability by supporting the grand opening of
     Yangzhou’s state-of-the-art Smart Grid Demonstration Center. With worldwide adoption
     of smart grid technologies growing as a way to ensure adequate clean, affordable energy,
     solutions showcased at the center will serve as a model of smart grid success for utilities across China. The center is
     verifying how GE’s technologies can help China improve the reliability, efficiency and carbon footprint of its energy
     delivery. Read the press release.
•	   The 33,000 citizens of Erding, Germany, will benefit from the environmental advantages of GE smart grid technologies in
     a major step toward managing energy and water consumption. Stadtwerke Erding, the city’s public works department,
     is implementing a groundbreaking pilot installation that will consolidate and report data to homeowners on energy and
     utility usage, including electricity, gas, water and heating. Read the press release.
•	   GE Oil & Gas will supply Petrofac, a leading international provider of services to many of the
     world’s largest oil and gas companies, with turbo compression equipment for Groupement
     Berkine’s El Merk central processing facility (CPF) in the Berkine Basin of Algeria, in a contract
     valued at approximately $100 million. Read the press release.
•	   GE Oil & Gas, through one if its affiliates, and Triveni Engineering & Industries Limited (Triveni)
     have signed a joint venture (JV) agreement to design, manufacture, supply, sell and service
     advanced technology steam turbines in India in the above 30 to 100 MW range for power
     generation applications in the Indian and worldwide markets. GE Triveni Limited, which will be incorporated in India
     and headquartered in Bangalore, will manufacture advanced technology steam turbines in India for both domestic
     customers and export to global markets. The JV, which will benefit from a full technology transfer and on-going R&D
     support from GE, will use Triveni’s Bangalore facility for turbine manufacturing. The transaction is expected to close in the
     next few months, subject to required consents and regulatory approvals. Read the press release.
•	   GE Oil & Gas has signed a memorandum of understanding (MOU) with the Vietnam National Oil and Gas Group
     (Petrovietnam), the Government of Vietnam wholly owned company responsible for all oil and gas resources in the
     country and the third largest oil producer in South East Asia. The MOU outlines the principles and basis of long-term
     collaboration between GE Oil & Gas and Petrovietnam regarding the supply of advanced oil and gas equipment, services
     and spare parts to optimize the total life-cycle value of key oil and gas projects. Read the press release.

April 2010 Investor Update                                                                                                        3
   GE Capital
•	 GE Capital, Corporate Retail Finance announced it was co-collateral
   agent on a $700 million asset-based credit facility for Borders Group,
   Inc. (NYSE: BGP), a specialty retailer of books and other educational and
   entertainment items. The loan will be used to support working capital
   needs. GE Capital Markets served as co-lead arranger. Borders Group
   is headquartered in Ann Arbor, MI, and employs approximately 19,500
   throughout the U.S., primarily in its Borders® and Waldenbooks® stores.
   Read the press release.

•	 GE Capital, Corporate Retail Finance announced it agented a $200 million
   asset-based credit facility for The Talbots, Inc., a leading women’s apparel
   retailer. The loan will be used to refinance debt, acquire BPW Acquisition
   Corporation and for ongoing working capital. GE Capital Markets served as
   sole lead arranger. “GE worked with us to understand the challenges and
   opportunities we have as a specialty retailer today,” said Michael Scarpa,
   chief operating officer and chief financial officer for Talbots. “They made
   a significant financial commitment, with a loan structure that provides
   financial flexibility to help meet our business objectives.”
   Read the press release.

•	 GE Energy Financial Services — pursuing its strategy of helping to build
   core, essential energy infrastructure — announced it is investing $150
   million in a liquefied natural gas receiving terminal under construction
   in Mississippi that will increase natural gas supplies to the Northeast
   and Southeast United States. The business unit of GE (NYSE: GE) is
   acquiring Houston-based investor Crest Group’s 30 percent interest in
   the fully contracted $1.1 billion Gulf LNG Energy terminal, expected to be
   completed late next year. The Port of Pascagoula will benefit from lease
   payments from the terminal, along with port fees and payments from LNG
   vessels. In addition, the project’s owners expect that once operational, the
   terminal will offer up to 60 full-time jobs. Read the press release.

April 2010 Investor Update                                                        4
     NBC Universal
•	 With 9.9 million total viewers for the first quarter of 2010, Nightly News had its
   best first quarter total viewer delivery since 1Q’05. Nightly had its best ever first
   quarter total viewer advantage over both World News and Evening News.

•	 Season-to-date, NBC’s primetime lineup is No. 3 among the major networks
   in adults 18-49 and adults 25-54 and tied for No. 2 in adults 18-34, leading
   ABC in each category. In total viewers, NBC’s average 8.5 million persons is
   up 7% versus last season, the biggest year-to-year increase among the major

•	 Bravo Media and Target announced an exclusive partnership to release DVDs
   of the network’s hit series to be sold exclusively at Target nationwide starting
   Apr. 13. This promotion marks the first ever partnership between the two
   companies. The DVD sets, which include The Real Housewives of Atlanta, The
   Real Housewives of New York City, Emmy-Award winning Kathy Griffin: My Life
   On The D-List, Top Chef: Chicago, Flipping Out, The Millionaire Matchmaker, The
   Rachel Zoe Project, and Million Dollar Listing, will be sold for a 12-week run.

•	   Universal Orlando Resort announced a June 18 grand opening date for The
     Wizarding World of Harry Potter and also released more details about its signature
     attraction, Harry Potter and the Forbidden Journey.

Upcoming film releases
•	 May 14        Robin Hood (Russell Crowe, Cate Blanchett)
•	 May 21        MacGruber

April 2010 Investor Update                                                                 5
     Citizenship, ecomagination and                                                                   sm

•	   Turning oceans of health data into usable information that can actually impact people’s lives can be a
     daunting task. It’s why GE’s healthymagination team is exploring new ways to make better sense of it via
     several data visualization projects — with the latest being our new interactive tool, “Fit to Perform,” which
     examines how health affects work performance and vice-versa. To create it, GE teamed with The Economist
     Intelligence Unit – which is the business-to-business arm of The Economist Group, publisher of The Economist
     magazine — and London-based designer, writer and author David McCandless. Over 500 global corporate
     executives were asked their opinions for the project — the results are the first part of a wide-ranging
     investigation into critical healthcare issues around the world. The broader findings in the “Health of Nations”
     program of research and analysis, created for GE by The Economist Intelligence Unit, will be unveiled in May.
     Read the GE reports story. Launch Fit to Perform.

GE Global Research
•	   Scientists at GE Global Research, our technology development arm, have joined forces with the U.S. Army
     in a two-year research study to evaluate soldiers returning from Iraq and Afghanistan for traumatic brain
     injuries (TBI) and post-traumatic stress disorders (PTSD). The project at Fort Gordon in Augusta, Georgia
     will combine the horsepower of GE’s labs with a range of GE’s current, and future, slate of Home Health
     technologies. Using advanced analytics to identify key symptoms of these disorders — which are still very
     difficult to measure and quantify — GE researchers hope to gather new information that will enable earlier
     detection, intervention and treatment of soldiers. Read the GE reports story.

•	   GE and Umicore (headquartered in Brussels, Belgium) announced they have successfully
     completed a Technology Transfer and signed a Technology License agreement to commercialize a
     proprietary Hydrocarbon Selective Lean NOx Catalyst (HC-LNC) aftertreatment designed to reduce and
     control diesel engine NOx (nitrogen oxide) emissions for various transportation and stationary applications.
     Working closely with GE Global Research and its partners over the past year, Umicore has reached key
     milestones in the development of the GE catalyst material in terms of production readiness, performance
     and durability. The two companies are now actively engaged in optimizing the commercial scale production
     of the material. In keeping with GE’s ecomagination program to help customers meet their environmental
     challenges, the partnership with Umicore also complements GE’s extensive research and development
     efforts on emission-reducing technologies. Read the press release.

Recent investor events
April 16:    GE First Quarter 2010 Earnings Webcast
             Visit our investor website to view the presentation, or click here.
April 28:    2010 GE Annual Meeting of Shareowners in Houston, Texas.
             Visit our investor website to view the presentation, or click here.
Upcoming investor events (subject to change)
May 19*:     2010 Electrical Products Group (EPG) Conference
*Meeting will be webcast. Webcast replays are retained on our website for a limited period of time.

April 2010 Investor Update                                                                                             6

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