Industrial CFOA from continuing operations

GE 2Q’14
supplemental information
• GE Capital segment results
• GE Capital segment assets
• GE Capital ending net investment
• GE Capital nonaccrual/net charge-offs
• GECC funding
• GECC leverage ratio
• GECC tier 1 common ratio estimate
• GE Capital reserves
• Orders & backlog by segment
• Equipment orders
• Equipment/service revenue by segment - 2Q’14
• Equipment/service revenue by segment - 2Q’14 YTD
• GE Industrial segment organic revenue growth
• Units summary – orders
• Units summary – sales
• Regional summary
• Corporate operating profit (cost)
• Operating earnings & EPS
• GE effective tax rate (ex. GECC)
• GE Industrial CFOA from continuing operations
Imagination at work.
GE Capital segment results
($ in millions – net earnings)
2Q’14
2Q’13
V%
$541
$825
(34)%
Consumer
472
830
(43)
Real Estate
289
435
(34)
GECAS
343
304
13
76
60
27
143
(530)
F
1,864
1,924
(3)
(161)
(135)
(19)
$1,703
$1,789
CLL
EFS
GECC Corporate
Earnings from continuing ops.
Preferred stock dividends
GE Capital segment profit -a)
(5)%
(a- Effective in the second quarter of 2014, GE began reporting the GE Capital segment results including the effects of the GECC preferred stock dividends. The cost of these dividends
had previously been reported in the GE Corporate Items and Eliminations line in GE’s Summary of Operating Segments table. Presenting GE Capital segment results including the
effects of the GECC preferred stock dividends aligns the way management currently measures the results of the financial services business. Prior-period information has been
reclassified to be consistent with how management currently measures GE Capital.
2
GE Capital segment assets
($ in billions)
2Q’14
2Q’13
$174.3
$173.5
Consumer
134.6
135.0
-
Real Estate
36.9
41.6
(11)
GECAS
43.9
48.3
(9)
EFS
15.8
18.4
(14)
102.6
101.5
1
$508.1
$518.3
1.5
2.8
$509.6
$521.1
CLL
GECC Corporate
GE Capital segment assets
Assets of discontinued operations
GECC total assets
V%
-%
(2)%
(46)
(2)%
3
GE Capital ending net investment
($ in billions)
2Q’14
1Q’14
4Q’13
3Q’13
2Q’13
$509.6
$510.4
$516.8
$520.7
$521.1
(1.5)
(1.4)
(2.3)
(2.6)
(2.8)
Less: non-interest bearing
liabilities & others
(60.5)
(60.0)
(59.3)
(58.0)
(58.5)
GE Capital ENI
447.6
449.0
455.2
460.1
459.8
Less: cash & equivalents
(76.3)
(75.3)
(74.9)
(76.3)
(69.5)
GE Capital ENI (ex. cash)
$371.3
$373.7
$380.3
$383.8
$390.3
GECC total assets
Less: assets of discontinued operations
4
GE Capital nonaccrual/net charge-offs
($ in millions)
Nonaccrual assets/nonaccrual % fin. rec.
Total net charge-offs/net charge-offs % fin. rec.
2Q’14
2Q’14
CLL
1Q’14
2Q’13
$2,530
2.23%
$2,654
2.32%
$3,397
2.91%
1,948
9.84
2,383
11.78
4,294
21.88
GECAS
153
1.81
275
3.11
-
EFS
76
2.74
43
1.56
4
0.09
2,419
2.36
2,566
2.42
3,831
3.48
-
-
12
2.82
Real Estate
Consumer
GECC Corporate
GE Capital
$7,126
2.89%
$7,921
3.14%
$11,538
4.41%
1Q’14
CLL
$123
0.43%
Real Estate
(77)
(1.54)
4
0.08
34
0.69
7
0.32
-
-
(1)
(0.14)
1
0.14
-
814
3.13
803
2.99
758
2.77
-
-
-
GECAS
EFS
Consumer
GECC Corporate
GE Capital
$866
1.39%
$213
0.74%
2Q’13
$1,021
1.60%
$298
1.01%
$1,090
1.66%
5
GECC funding
($ in billions)
Debt composition –a)
Non-recourse
Securitization
LT debt
$375
30
237
$371
30
234
Unsecured term issuances
$363-b)
30
$32
$9
226
'12
Deposits/CDs
Alternative
funding/other
Comm’l paper
Bank lines
CP coverage
Cash & equiv.
LT debt <1yr.
48
53
58
24
36
25
29
24
25
2Q'13
4Q'13
2Q'14
$48
100%+
$69
$32
$48
100%+
$75
$39
$32
$46
100%+
$76
$39
'13
'14YTD
• Completed $9B of LT debt issuance YTD in 5
currencies…including $4B in 2Q
• Liquidity in the global CP markets continues to
be strong
• Deposits/CDs and other alternative funding
~23% of total debt, securitization ~8%
• Liquidity position remains strong
(a - Continuing operations
(b - Includes ~$0.1B YTD FX impact and ~$1.5B YTD FAS 133
6
GECC leverage ratio-a)
($ in billions)
As reported
Debt
Equity–b)
Leverage ratio
Debt
Less: cash & equiv.
Adjusted debt
Equity–b)
Adjusted leverage ratio
2Q’14
1Q’14
2Q’13
$363.2
85.8
$365.2
84.6
$375.6
84.2
4.2
4.3
4.5
363.2
(76.6)
286.6
365.2
(75.4)
289.8
375.6
(69.6)
306.0
85.8
84.6
84.2
3.3
3.4
3.6
(a - Includes discontinued operations for all periods
(b - Total equity ex. non-controlling interests
7
GECC tier 1 common ratio estimate-a)
($ in billions)
2Q’14
1Q’14
4Q’13
3Q’13
2Q’13
As reported
Shareowners’ equity-b)
$85.8
$84.6
$82.7
$84.1
$84.2
- Preferred equity
Intang. & GW
- Unr. G/(L) on invt. & hdg.
- Other additions/(deductions)
(4.9)
(27.6)
(0.9)
(0.9)
(4.9)
(27.6)
(0.6)
(0.7)
(4.9)
(27.4)
(0.0)
(0.3)
(4.9)
(27.9)
0.1
(0.8)
(4.9)
(28.0)
0.3
(0.8)
51.5
50.8
50.1
50.6
50.8
439.7
444.4
447.2
446.2
454.4
Tier 1 common
Estimated risk weighted assets-c)
-
Tier 1 common ratio
11.7%
11.4%
11.2%
11.3%
11.2%
Tangible Common Equity/Tangible Assets
11.0%
10.8%
10.3%
10.4%
10.4%
(a - Includes discontinued operations for all periods
(b - Total equity ex. non-controlling interests
(c - Based on Basel 1 RWA estimates
8
GE Capital reserves
($ in billions)
Allowances
for losses
$5.2
$5.1
$5.2
Commercial
1.1
1.1
1.1
Consumer
4.1
4.1
4.1
2Q'13
1Q'14
2Q'14
2.00%
45%
2.04%
65%
2.09%
72%
Coverage:
Reserves
Nonaccrual
Note: Reserve components are calculated independently. As a result, the sum of the individually displayed amounts may not equal the total.
9
Orders & backlog by segment
($ in billions)
Power & Water
2Q’14
Orders
V%
2Q’14 YTD
Orders
$6.3
6%
$12.0
V%
7%
2Q’14
Backlog
$63.4
V%
3%
Oil & Gas
5.3
5
9.9
-
18.6
3
Energy Management
1.9
(14 )
4.1
(8)
5.0
12
Aviation
5.8
1
11.3
(9)
126.9
16
Healthcare
4.8
-
9.1
-
16.6
6
Transportation
1.5
35
3.8
72
15.9
13
Industrial segments
$25.1
4%
$48.8
2%
$246.4
10%
10
Equipment orders
($ in billions)
3Q’13 V%
Power & Water
4Q’13 V%
1Q’14 V%
81%
Oil & Gas
2.3
3
2.9
(8)
2.4 (17 )
2.5
(9)
2.5
(8)
Energy Management
1.5
10
1.7
6
1.6
1.4 (18)
1.5
(3)
Aviation
5.0
92
4.1 (15)
2.4 (38 )
2.9
(8)
3.6
-
Healthcare
2.7
6
3.4
(1)
2.3
-
2.8
-
2.8
1
Transportation
0.9
65
0.6
(2)
1.8
F
0.6 40
1.0
93
32%
$18.4
10%
$12.6
(8)%
$13.0
(1)%
31%
$6.4
(6 )
$3.0
$3.7
37%
$15.1
(3)%
V%
$3.0
Industrial Segments
$2.6
2Q’14 V%
Four qtr.
rolling
average
(3)%
$14.8
7%
11
Equipment/service revenue by segment - 2Q’14
($ in billions)
Power & Water
2Q’14
Equipment
V%
2Q’14
Services
$3.1
20%
$3.2
V%
2%
2Q’14
Total
V%
$6.3
10%
Oil & Gas
2.6
29
2.2
11
4.8
20
Energy Management
1.4
(4)
0.5
(13 )
1.9
(6 )
Aviation
3.1
15
2.9
15
6.1
15
Healthcare
2.5
(1)
2.0
-
4.5
-
Transportation
0.6
(32)
0.7
(2)
1.3
Appliances & Lighting
2.0
(1)
0.1
7
2.1
Industrial Segments
$15.2
8%
$11.7
5%
$26.9
(18 )
7%
Note: Individual amounts are rounded. As a result the sum of the parts presented may not add to the total.
12
Equipment/service revenue by segment - 2Q’14 YTD
($ in billions)
Power & Water
2Q’14 YTD
Equipment
V%
2Q’14 YTD
Services
$6.0
29%
$5.8
V%
(1)%
2Q’14 YTD
Total
$11.8
V%
12%
Oil & Gas
4.9
35
4.1
12
9.1
23
Energy Management
2.6
(5)
0.9
(6)
3.5
(5)%
Aviation
6.0
14
5.8
15
11.9
Healthcare
4.8
(1)
3.9
(1)
8.7
(1)%
Transportation
1.2
(27)
1.4
(4)
2.5
(16)%
Appliances & Lighting
3.8
(2)
0.2
2
4.0
(2)%
Industrial Segments
$29.2
$51.5
8%
10%
$22.2
4%
14
Note: Individual amounts are rounded. As a result the sum of the parts presented may not add to the total.
13
GE Industrial segment organic revenue growth
($ in millions except earnings per share)
2Q’14
2Q’13
V%
2Q’14
YTD
$26,908
$25,168
7%
$51,457
$47,842
1,035
532
1,474
850
Industrial segment revenues excluding the
effects of acquisitions, business dispositions
(other than dispositions of businesses
acquired for investment), currency
exchange rates
$25,873
$24,636
$49,983
$46,992
Industrial segment revenue
Less the effects of:
Acquisitions, business dispositions
(other than dispositions of businesses
acquired for investment) & currency
exchange rates
5%
2Q’13
YTD
V%
8%
6%
14
Units summary - orders
2Q’14
YTD
2Q’13
YTD
V
2Q’14
2Q’13
V
10
715
24
581
(14)
134
41
1,137
32
1,165
9
(28)
Aviation:
CEO engines
GEnx engines
Military engines
Spares rate -a)
1,061
13
163
$28.4
1,255
29
142
$24.6
(194)
(16)
21
$3.8
1,857
19
454
$29.1
2,601
34
285
$25.0
(744)
(15)
169
$4.1
Transportation:
Locomotives
$138
60
78
397
140
257
Power & Water:
Gas turbines
Wind turbines
(a - Commercial spares rate in millions of dollars per day
15
Units summary - sales
Power & Water:
Gas turbines
Wind turbines
Aviation:
CEO engines
GEnx engines
Military engines
Spares rate -a)
Transportation:
Locomotives
2Q’14
YTD
2Q’13
YTD
2Q’14
2Q’13
V
V
21
510
19
351
2
159
38
1,156
31
652
7
504
652
75
261
$28.7
596
33
280
$25.2
56
42
(19)
$3.5
1,298
145
509
$28.6
1,192
74
559
$24.3
106
71
(50)
$4.3
165
170
(5)
343
313
30
(a - Commercial spares rate in millions of dollars per day
16
Regional summary
($ in billions)
Infrastructure Orders
2Q’14
Resource Rich-a)
Asia -b)
V%
$7.7 19%
3.5
5
Industrial Segment Revenues
2Q’14
YTD
V%
$15.2
12%
$7.5
(6 )
2.9
6.0
2Q’14 V%
7%
5
2Q’14
YTD
V%
$14.3
8%
5.2
2
Growth regions
$11.2 14%
$21.2
6%
$10.4
6%
$19.5
6%
Developed-c)
$13.9
(3)%
$27.6
(1)%
$16.6
7%
$31.9
8%
Total
$25.1
4%
$48.8
2%
$26.9
7%
$51.5
8%
(a - Resource Rich: Australia & New Zealand, Canada, Latin America, MENAT, Russia/CIS, & Sub Saharan Africa
(b - Asia: ASEAN, China, & India
(c - Developed: US, Europe, Japan, & Korea
Note: Individual amounts are rounded. As a result the sum of the parts presented may not add to the total.
17
Corporate operating profit (cost)
($ in millions)
2Q’14
2Q’13
2Q’14
YTD
NBCU/NBCU LLC
$-
$33
$-
$1,371
Gains (losses) on disposed businesses
91
-
91
-
Principal retirement plans-a)
(582)
(806)
(1,163)
(1,598)
Restructuring and other charges
(407)
(280)
(783)
(826)
Other Corporate costs & eliminations
(576)
(695)
(1,161)
(1,174)
(1,474)
(1,748)
(3,016)
(2,227)
Less: Non-operating pension cost
(529)
(661)
(1,055)
(1,312)
Total Corporate (operating)
(945)
(1,087)
(1,961)
(915)
Less: NBCU, restructuring & other, gains
(316)
(247)
(692)
545
$(629)
$(840)
$(1,269)
$(1,460)
Total Corporate costs (continuing)
Adjusted Total Corporate (operating)
2Q’13
YTD
(a - Includes non-operating pension
18
Operating earnings & EPS
($ in millions except earnings per share)
Earnings from continuing operations
attributable to GE
Adjustment (net of tax): non-operating
pension costs/(income)
Operating earnings
2Q’14
2Q’13
V%
2Q’14
YTD
2Q’13
YTD
$3,586
$3,257
10%
$6,573
$6,904
344
430
686
853
$3,930
$3,687
7%
$7,259
$7,757
(6)%
$0.35
$0.31
13%
$0.65
$0.66
(2)%
.03
.04
.07
.08
$0.39
$0.36
$0.72
$0.75
V%
(5)%
Earnings per share – diluted-a)
Continuing earnings per share
Adjustment (net of tax): non-operating
pension costs/(income)
Operating earnings per share
8%
(4)%
(a - Earnings per share amounts are computed independently. As a result, the sum of per share amounts may not equal the total.
19
GE effective tax rate (ex. GECC)
($ in millions)
GE earnings from continuing operations
before income taxes
2Q’14
2Q’13
2Q’14
YTD
$3,985
$3,703
$7,232
$7,747
Less GECC earnings from continuing ops.
attributable to the company
1,864
1,924
3,797
3,862
$2,121
$1,779
$3,435
$3,885
GE (ex. GECC) provision for income taxes
– continuing ops.
$409
$297
$727
$721
Effective tax rate GE (ex. GECC)
19%
17%
21%
19%
Adjusted earnings from continuing ops.
before income taxes
2Q’13
YTD
20
Industrial CFOA from continuing operations
($ in millions)
2Q’14
YTD
2Q’13
YTD
V%
$3,371
$3,697
(9)%
1,416
1,947
$1,955
$1,750
Less the effects of NBC related taxes
–
1,565
Less the effect of pension contributions
–
–
$1,955
$3,315
Cash from GE’s operating activities as reported
Less GECC dividends
Cash from GE’s operating activities excluding
dividends from GECC (Industrial CFOA)
Industrial CFOA excluding NBC related taxes
and pension contributions
12%
(41)%
21