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					Global Update
India & China
Gary Reiner
October 18 , 2004
This presentation includes certain "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of
1995. These statements are based on management's current expectations and are subject to uncertainty and changes in
circumstances. Actual results may differ materially from these expectations due to changes in global economic, business,
competitive, market and regulatory factors. More detailed information about those factors is contained in GE's filings with the
Securities and Exchange Commission.
  GE Global Revenues –a)
          Americas               Europe             Asia
           $96B                   $34B              $16B


                                                           China $4B
                                          MEA $4B
                                                    India $1B




                         Strong position in both countries
                                                                            2/
                                                                   Gary Reiner
                                                                   GE SVP CIO/
(a – Current Estimates                                             10/18/2004
GE Global Growth
                                India and China
        Non-U.S. growth         • Huge sourcing opportunity
                          $82   • India at beginning of growth cycle
             $70                   – Little GE investment needed
                                   – Product fit with needs
  $57                              – Huge pool of intellectual talent
                                • China provides continued growth
                                   – Beijing Olympics 2008
                                   – Huge power requirements
                                   – 50-100 new airplanes/year,
                                      population becoming mobile
                                   – Rising need for more
                                      healthcare
  '03         '05         '07      – Infrastructure for
                                      manufacturing – plastics,
                                      water technology, industrial
                                      automation, sensing
                                                                         3/
                                                                Gary Reiner
                                                                GE SVP CIO/
                                                                10/18/2004
GE in India
India….The Case for Optimism
  • Capital goods production           • Opportunities abound for
    and consumer durable                 more reform: labor
    spending growing double-             markets, foreign
    digit pace                           investments, state-owned
  • Vibrant trade sector: IT             enterprises
    services trade growth              • Continuing peace talks
    helping to offset oil import         with Pakistan
    bill; liberalizing textile trade
    a boon

But…Government spending plans on infrastructure, education and
health will mean higher taxes to control deficit

                                                                        5/
                                                               Gary Reiner
                                                               GE SVP CIO/
                                                               10/18/2004
Economic/Political Outlook 2004-2009

Sector       Growth Rate %            • Reformers in key roles
Services        8.0 - 8.3             • Must balance interests of the
                                        left
Industrial      6.5 - 6.7
Agricultural     0 – 2.5              • FDI… only real source of cash
                                         – Infrastructure
                                         – Healthcare
Inflation                   4.5-5.5
                                      • Public sector reform… fix, sell
                                        or close!


      Finally Growing…Almost the Way It Should!
 Source: IMA India & CERG Advisory
                                                                           6/
                                                                  Gary Reiner
                                                                  GE SVP CIO/
                                                                  10/18/2004
GE’s India Strategy
Intellectual Sourcing
• Lower costs… significant savings over all other English
   speaking countries
• Equal or better quality
• Telecom deregulating…..prices dropping significantly
Local Market
• Small but with reasonable growth
• Little incremental GE investment required to play
• Market needs GE product offerings — Infrastructure, Financial,
  Healthcare
        Capitalize on intellectual talent; patience in local market

                                                                               7/
                                                                      Gary Reiner
                                                                      GE SVP CIO/
                                                                      10/18/2004
GE India Sales / Sourcing                                            20%
Sales
                                                        +$1.2
                                   $1.0
           $0.7




           '03                     '04E                 '05F
Sourcing                                                            $ for $
                                                                Service Savings

                                    $2.4                     +$2.6
           $2.0



            '03                     '04E                     '05F

                 Growth driven by smart resource decisions
                                                                                 8/
                                                                        Gary Reiner
                                                                        GE SVP CIO/
                                                                        10/18/2004
GE’s Indian IT Strategy
• $600M+…from 0 in 1995
• 70/70/70
• Own Program Managers….Outsource Coding
• GE Indian Program Managers Enabling New
  Game
    •I to I model…..30% cheaper still
• Significantly Growing Remote Monitoring
  and Maintenance

                                               9/
                                      Gary Reiner
                                      GE SVP CIO/
                                      10/18/2004
GE Businesses - Global & India
  JFWTC         John F Welch Technology Center- 1900 Technologists
NBC Universal




                Advanced Mechanical Technologies
                Chemical Engineering and Modeling
                Chemistry and Catalysis Lab
                Electronic and Photonics Sys Technologies
                Engine Analysis and Prognostic Lab
                Imaging Technologies
                Information and Decision Technologies
                Materials Research Lab
                Micro and Nano Structures Technologies
                Polymers and Synthetic Materials Lab
                Power Systems Technology
                                                                       10 /
                                                                Gary Reiner
                                                                GE SVP CIO/
                                                                10/18/2004
GECIS Products & Services                                          Industry Verticals
                      Products
           Finance                       Analytics
•    Payables, Receivables       •   Direct Market Analytics        Healthcare
•    Reconciliations             •   Biz & Market Intelligence
•    Cash Applications           •   Risk Analytics - Retail Fin        Transportation
•    Billing, FP&A               •   Collections Analytics
                                                                      Energy
        Voice Based                  Document Management
    • Early Stage Collections                                                Retail
    • Consumer & Commercial          • Document & Image
                                       Scanning/Storage /            Aviation
       Technology                      Retrieval
                                                                          Automotive
    • Client, Network , and           Transactional
      Server Remote Services                                       Manufacturing
    • Oracle & Siebel App             • Application
      Enhancement                       Processing
                                      • Underwriting
                                                                           Insurance
    • IT Maintenance
                                                                      Finance
                                                                                               11 /
                                                                                        Gary Reiner
                                                                                        GE SVP CIO/
                                                                                        10/18/2004
“India is playing a key role in GE's
globalization initiative. Our research
and development, engineering design
and software development centers in
India are fully integrated into GE's
global centers. The back room
centers of excellence spread across
India are raising quality levels,
improving cycle times and lowering
GE's cost of operations.”
              – Jeffrey R. Immelt,
Chairman & CEO, GE
Solid Platform in Infrastructure and Services
   Transportation – $75MM                           Energy – $100MM

                        • GE engines in                        • Software Solutions
                          commercial and
                                                               • Engineering Analytics
                          military fleet
                                                               • Wind
                        • Longer
                          rail/signaling
                          opportunities
                        • Strong tech support




    Healthcare – $325MM                         Financial Services – $250MM
                 • Global Production                           • Consumer – SBI Cards,
                   Company                                       GE Countrywide, CBI
                                                                 credit card processing
                 • Global Technology
                                                               • Commercial –
                                                                 Equipment Financing,
                                                                 Healthcare, Mid
                                                                 Market Financing




                                                                                        13 /
                                                                                 Gary Reiner
                                                                                 GE SVP CIO/
                                                                                 10/18/2004
India Talent
           Professional Employees
8000                                             • Entry level leadership
7000
                                                   programs … 400+
6000
                                                 • Audit staff assignments
                                                   50+ in 2003
5000
                                                 • Cross business moves in
4000
                                                   India … 400+ last 2 yrs
3000
                                                 • Global assignments …. 200+
2000
                                                 • 1005+ with options
1000

   0
       1996 1997 1998 1999 2000 2001 2002 2003


                 Attracting, Developing, and Retaining the Best

                                                                                    14 /
                                                                             Gary Reiner
                                                                             GE SVP CIO/
                                                                             10/18/2004
GE in China




                     15 /
              Gary Reiner
              GE SVP CIO/
              10/18/2004
Nanjing Road, Shanghai
In the late 1980s




                    Today!!
                                     16 /
                              Gary Reiner
                              GE SVP CIO/
                              10/18/2004
Financial District …Pudong, Shanghai


                     Now



Late 1980’s




                                              17 /
                                       Gary Reiner
                                       GE SVP CIO/
                                       10/18/2004
But Still … China Has Many Challenges Ahead …
Variation




Gansu


        Zhejiang
                                  Anhui
                                                   18 /
                                            Gary Reiner
                                            GE SVP CIO/
                                            10/18/2004
                                                                     The Country
                                                      Area:

                                                           • 9,561,000 sq km
                                                      Language:

                                                           • Mandarin…7 main dialects exist
                                                      Regional assemblies and administrations

                                                           • 4 special municipalities
                                                           • 22 provinces
                                                           • 2 special admin. regions
                                                              • (HK & Macao)& Taiwan province

                                                      Population:                 1.3 billion
Official Name:               Head of State:
                                                      Major cities & population
People’s Republic of China    Hu Jintao (President)
                                                           • Chongqing            31 MM
                              Wen Jiabao (Premier)
Form of Government:                                        • Beijing (capital)    14 MM
One-party rule by the                                      • Shanghai             13 MM
Chinese Communist Party                                    • Chengdu              10 MM
                                                           • Tianjin              10 MM
                                                                                               19 /
                                                                                        Gary Reiner
                                                                                        GE SVP CIO/
                                                                                        10/18/2004
China’s Rising Economy
Resuming Economic Growth                                                         Continued RMB Stability??
                                                                                 Rmb/$                                   Trade Balance B$
                                                                                                                                       50
 GDP $B                                         % Real GDP Growth
                                                                                 8                                                     40
2000      8.8                                  9.1     8.9   10.0
                7.8   7.1   8.0   7.3   8.0                                                                                            30
1600                                                                             5
                                                                                                                                       20
1200
                                                             5.0                 2                                                     10
 800
 400                                                                                                                                   0
                                                                             -1
   0                                                         0.0                                                                       -10

       1997 1998 1999 2000 2001 2002 2003 2004E                              -4                                                        -20
                                                                                     1980 1983 1986 1989 1992 1995 1998 2001 2004E


                                   Industrial Production
                                   % Change
                                   20


                                   15


                                   10


                                    5


                                    0
                                        1997    1998     1999      2000   2001       2002   2003   2004E


                                                                                                                                         20 /
                                                                                                                                  Gary Reiner
                                                                                                                                  GE SVP CIO/
                                                                                                                                  10/18/2004
Biggest Political Risk: Regional Variation of
Incomes
• Areas with GDP per Capita $1K ~ 2K are concentrated in East Coast
• GDP per Capita for 52% of total population is < $1K
    – mainly in the West Region and central areas
• 6% of Population With GDP per Capita > $2K
    – Shanghai averages $5K
• 64% of GDP comes from East & South regions
• 10 provinces in the West region only generate 13.4% of total GDP
• “Go West” & “Northeast Revitalization” critical initiatives



                                                                             21 /
                                                                      Gary Reiner
                                                                      GE SVP CIO/
                                                                      10/18/2004
China Somewhat Successful in Reining in
Economy
                                        Credit Tightening Hit Key Industries
                                        • Construction
            Bank Loan Growth            • Steel
% Change                                • Cement
25
                                        Other Constraints:
                                        • Electricity Shortages
20                                      • High Oil Price

15                                      Hasn’t Affected:
                                        • Foreign-Owned/Partnered Firms with Access
                                          to International Capital
10
                                        • State-Owned Enterprises with Party
                                          Connections
5
                                        Still Economy is Booming:
                                        • Industrial Production Only Slowed to 16% from
0
                                          23%
     2000   2001   2002   2003   2004
                                        • Real Interest Rates Falling as Inflation Rises
                                        • Fixed Exchange Rate Raising Money Supply


                                                                                      22 /
                                                                               Gary Reiner
                                                                               GE SVP CIO/
                                                                               10/18/2004
What Will “Probably” Happen By 2024?
1. The Largest Consumer Market
    • 1.3 billion population
    • 250 million ‘mid-class’ people
2. The Largest Consumer Finance Market
    • 900,000 automobiles & 3 million houses consumption per year
    • $1.3 billion card potential opportunity
3. Hottest Healthcare Market
    • Average life > 71.4
    • Medical treatment expenditure > $30 billion every year
4. #1 Aircraft Market
    • Acquire 1700+ aircrafts
    • Building 50+ new airports
    • Connecting the East, Central and West
5. The Largest Power Consumer
    • #2 in power generation & capacity in the world
    • Annual growth > ~9%
Note: Presented at GE Company Officer Meeting… Oct. 2001


                                                                           23 /
                                                                    Gary Reiner
                                                                    GE SVP CIO/
                                                                    10/18/2004
Government’s Investment Plan on Major
Sectors for Year 2001-2010 in China
Sector                                   Investment Focus
Energy                            396
Electrical Power Gen              335    • Increase Capacity 352 GW by 2010
Oil & Gas                          61    • Develop Power Grid
                                         • West to East Gas Pipeline Gas

Water                              66
Water Supply                       30    • Develop 600 Billion tons of water supply
Waste Water Treatment              36    • Urban sewage treatment rate over 70%

Transportation                    530
Urban Rail                        133    • 2,555 KM Urban Rail Development
Airport                            12    • 80+ New Airports
Highway                           385    • 600,000 KM Highway

Beijing Olympics 2008              32    • Stadiums & other facilities

Expo Shanghai 2010                 33    • Venues, city infrastructure & facilities

Total                   $1,057 Billion

                                                                                             24 /
                                                                                      Gary Reiner
                                                                                      GE SVP CIO/
                                                                                      10/18/2004
“One GE” in China: “Strategic and Practical”
Approach             Sell
                                • Obtain Deep Market Knowledge
                                • Understand Customers Needs
                                • Develop Competitive Offerings




     Manufacture                                                          Source
   • Drives Services Platform
     Capability                                                   • Competitive Cost Position
   • Speed, Product                                               • RM, Components, FG
     Development                                                  • Leverage Local
                                                                    Capabilities




                                          Services
                                    • Develop Services Model
                                    • Long-Term
                                      Competitiveness


                   As in Europe, Japan and ROW…To Sell More,
                  …You Must Participate In Multiple Capabilities
                                                                                                       25 /
                                                                                                Gary Reiner
                                                                                                GE SVP CIO/
                                                                                                10/18/2004
GE China Sales / Sourcing
                                                       Dynamics
           Sales           ~$5.0   40%
                                         •   Power Execution
              $3.6                            – 50% market share in GTs
   $2.6                                       – 2 New Wind Farm Closes
                                         •   Healthcare Expansion
                                              – YTD growth +20%
                                              – Solid Margin Performance
   '03        '04E         '05F          •   Advanced Materials Growth
          Sourcing                            – Strong Volume + 18%
                                              – Price Growth
                +10%
               Deflation                 •   Transportation
                           ~$4.0
                                              – Engines…Leadership
              $2.2                            – Continuing to Win
   $1.6                                  •   Sustainable Sourcing Deflation
                                         •   Great Progress in Services

   '03        '04E         '05F

     GE Continues to Win…Driven by Infrastructure Expansion
                                                                                 26 /
                                                                          Gary Reiner
                                                                          GE SVP CIO/
                                                                          10/18/2004
Leveraging USA, EU and China…to Build Our Positions
             Aircraft Engines                                        Medical Systems

 CF34 Selected As Sole Engine For China Regional Jet
                                                              Sales ($MM)
                                                                                    $1,100F
                                        • ARJ21, 80-100                                       • Healthcare
                                          Passengers                                            Reform
                                        • Entry In 2007                      $600               Underway
                                        • 500 Aircraft                $305                    • Technology
                                          Outlook             $70                               Driven Growth
                                        • ~$3 Billion
                                                              ‘95      ‘00    ‘03    ‘05


                   Plastics                                            Power Systems


   Sales ($MM)                                                                             • GTCC 9FA Project…
                                $1,200F
                                                                                             $900 Million
                                          • Driven by… MNC
                                                                                           • 170 Gas Tbn’s
                                            & China
                        $615                                                               • 100 Steam Tbn’s
              $550                          Customers
                                                                                           • 100 Hydro Tbn’s
    $260                                  • Competitive
                                            Service Centers                                • 500 O&G Comp.

     ‘00         ‘02     ‘03      ‘05
                                                                                                           27 /
                                                                                                    Gary Reiner
                                                                                                    GE SVP CIO/
                                                                                                    10/18/2004
GE Investments in China                                                        HARBIN
                                                                               • Power Services JV


                                SHENYANG                                       DALIAN
                                • SBW Turbo-machinery JV                       • GE Capital Dalian Center
                                • Liming Turbine JV
     BEIJING
     •GEMS Hangwei JV
     •GEMS Hualun                                                              SHANGHAI: HQ
     •GE Global Sourcing                                                       • GE CR&D / Sourcing
     •Transportation China                                                     • GE Lighting
                                                                               • GE Finance
                                        WUXI                                   • GE Plastics
 GUANGHAN                               • GEMS Ultrasound                      • GE Silicones
 •GE-CAAC Engine                        • GE Water Technologies                • GEMS Trading
  Maintenance Training                                                         • GE Breakers
  School                                                                       • GE Guangdian JV


                             SHENZHEN
                             •Fine Silicones                                    XIAMEN
                                                                                •GEAE On Wing Support
                                                                                •GE Lighting Topstar JV
                             GUANGZHOU                            ZHONGSHAN
                             •GE Plastics Nansha
                                                                  • Plastech


  $600 Million Investment….Producing $2.6 Billion…Significant ROTC
                                                                                                                   28 /
                                                                                                            Gary Reiner
                                                                                                            GE SVP CIO/
                                                                                                            10/18/2004
 Touching Olympics in Many Ways … Natural Fit for GE
2008 Olympics Requirements                                                                     GE Solutions
                                                                                         • Critical Power
• Reliable Power                    National Stadium           BJ Sports Uni. Gym          - Substations & switchgear
                                                                                           - UPS/Standby power
• Integrated Security                                                                      - Power system analysis
                                                                                         • Security Systems
• Efficient Environment. Controls
                                    Swimming Center            National Tennis Center      - Access control
• Safe Water Supply                                                                        - Intrusion & CCTV
                                                                                           - Fire & System Integration
• Effective Wastewater                                                                   • Lamps & Fixtures
                                    Beijing Olympic Gym         Wu Ke Song Stadium
 Treatment                                                                                 - Design Solutions
                                                                                           - Stadium & Roadway Lighting
• High-quality Broadcast                                                                 • Automation Systems
 Production                                                                                - Lighting & HVAC Control
                                    Baseball Field             Laoshan Bicycle Field       - Power management systems
• Global Project Coordination                                                            • Water Technologies
                                                                                           - Purification & Wastewater Treatment
• Efficient Olympics Mgmt
                                                                                           - Dust Control & Odor Management
                                                                                         • Healthcare
• Secure, Reliable Logistics        International Exhibition   Capital. Sports College
                                    Hall                       Gym                         - MRI & Ultrasound Equipment
                                                                                         • Advanced Materials
                                                                                            - Plastics SPD & Silicones
                                     Olympic Green
China Technology Center: GRC




                                      30 /
                               Gary Reiner
                               GE SVP CIO/
                               10/18/2004
 China Technology Center
People                                                   Labs
                                         R&D                      Testing / Reliability
  • 608 Employees by end of ‘03
                                  •   Ceramic                    • Electronics Testing (3)
  • 900 employees by end of ‘05                                  • Material
                                  •   Single Crystal
Facilities                                                        Characterization
                                  •   Micro Replicator
  • 28 labs                       •   Structured films           • EMC
Technology Focus                  •   Electro Chemical           • Microscopy
  • Materials                     •   Thin Films                 • Environmental (3)
  • Electronics                                                  • Physical Testing
                                       Manufacturing
  • Manufacturing Technology
                                  •   Adv. Manufacturing
Co-Located Businesses
                                  •   Adv. Processes
  • Global Research Center        •   NDT                       Facility Space
  • Advanced Materials            •   Adv. Repair                Offices              17,000
  • Consumer & Industrial         •   Service Technology         Labs / Others        18,800
  • Energy                                                       Display Lobby         1,000
  • Infrastructure                                               Training Center       1,200
                                     Design
  • Transportation                                               Other                 3,100
                                  • Electronics Design (4)
  • Consumer Finance                                             Total                41,100m2
                                  • Chemical (2)
GE China Learning Center          • Permanent Magnet

                                                                                               31 /
                                                                                        Gary Reiner
                                                                                        GE SVP CIO/
                                                                                        10/18/2004
R&D Environment in China

              MS & PhD Degree Graduates             • College enrollment Increased 100%
                     (50% Tech, 80% MS)               from ’99 (1.7MM) to ’02 (3.4MM)…
                                                      Will see significant increase in MS &
                                                      PhDs in ’05 & ‘06
180,000
                                                    • Certain Disciplines Approaching
140,000                                               World-Class: Electronics, Controls,
                                                      Materials (Ceramics, Crystals, Rare
100,000                                               Earth)
                                                    • Growth in Multi-National R&D from
 60,000
                                                      1 in ’94 to 400 in ’03 (111 in
                                                      Shanghai) … 60 from F500, 12 in
 20,000
          0
                                                      Shanghai
              2001   2002    2003     2004   2005




                                                                                            32 /
                                                                                     Gary Reiner
                                                                                     GE SVP CIO/
                                                                                     10/18/2004
China / Asia Learning Center




                                      33 /
                               Gary Reiner
                               GE SVP CIO/
                               10/18/2004
GRC Grand Opening…October 2003




                                        34 /
                                 Gary Reiner
                                 GE SVP CIO/
                                 10/18/2004
Premier Wen Jiabao Visits GE, NY City
… Dec. 08, 2003



                          “Bring to China your products,
                          technology, management know-
                          how, talents development and
                          Sino-U.S. friendship,” Chinese
                          Premier Wen Jiabao told GE
                          Chairman Jeff Immelt on
                          December 8, 2003 in New York.




                                                        35 /
                                                 Gary Reiner
                                                 GE SVP CIO/
                                                 10/18/2004
Summary….What we’re doing
to “Win in China“…
•   People:
     – 11,000 Employees….4,000 New in the past 30 Months
         – Front-End, MFG, R&D, Sourcing and Service Focused
•   Manufacturing:
     – Controlling & Going Local…Filling Product Gaps to Compete
•   Technology, Sourcing and Learning Center:
     – Opened 3rd Global Research Center
     – 1st China/Asia Learning Center
     – Taking Advantage of…Capability, Capacity and Cost
     – Developing our Future Leaders
•   Government and Media Relations:
     – Becoming “Valued Partner” to China’s Development Process
        Rapidly becoming a “Self Sustaining”, “Widely Respected” and
                       “Local Feeling” GE in China…

                                                                              36 /
                                                                       Gary Reiner
                                                                       GE SVP CIO/
                                                                       10/18/2004

				
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