GE 2015 third quarter performance Financial results & Company highlights October 16, 2015 CAUTION CONCERNING FORWARD-LOOKING STATEMENTS: This document contains "forward-looking statements" – that is, statements related to future, not past, events. In this context, forward-looking statements often address our expected future business and financial performance and financial condition, and often contain words such as "expect," "anticipate," "intend," "plan," "believe," "seek," "see," "will," "would," or "target." Forward-looking statements by their nature address matters that are, to different degrees, uncertain, such as statements about our announced plan to reduce the size of our financial services businesses, including expected cash and non-cash charges associated with this plan; expected income; earnings per share; revenues; organic growth; margins; cost structure; restructuring charges; cash flows; return on capital; capital expenditures, capital allocation or capital structure; dividends; and the split between Industrial and GE Capital earnings. For us, particular uncertainties that could cause our actual results to be materially different than those expressed in our forward-looking statements include: obtaining (or the timing of obtaining) any required regulatory reviews or approvals or any other consents or approvals associated with our announced plan to reduce the size of our financial services businesses; our ability to complete incremental asset sales as part of that plan in a timely manner (or at all) and at the prices we have assumed; changes in law, economic and financial conditions, including interest and exchange rate volatility, commodity and equity prices and the value of financial assets, including the impact of these conditions on our ability to sell or the value of incremental assets to be sold as part of our announced plan to reduce the size of our financial services businesses as well as other aspects of that plan; the impact of conditions in the financial and credit markets on the availability and cost of GECC's funding, and GECC's exposure to counterparties; the impact of conditions in the housing market and unemployment rates on the level of commercial and consumer credit defaults; pending and future mortgage loan repurchase claims and other litigation claims in connection with WMC, which may affect our estimates of liability, including possible loss estimates; 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 adequacy of our cash flows and earnings and other conditions which may affect our ability to pay our quarterly dividend at the planned level or to repurchase shares at planned levels; GECC's ability to pay dividends to GE at the planned level, which may be affected by GECC's cash flows and earnings, financial services regulation and oversight, and other factors; our ability to convert pre-order commitments/wins into orders; the price we realize on orders since commitments/wins are stated at list prices; customer actions or developments such as early aircraft retirements or reduced energy demand and other factors that may affect the level of demand and financial performance of the major industries and customers we serve; the effectiveness of our risk management framework; the impact of regulation and regulatory, investigative and legal proceedings and legal compliance risks, including the impact of financial services regulation and litigation; adverse market conditions, timing of and ability to obtain required bank regulatory approvals, or other factors relating to us or Synchrony Financial that could prevent us from completing the Synchrony Financial split-off as planned; our capital allocation plans, as such plans may change including with respect to the timing and size of share repurchases, acquisitions, joint ventures, dispositions and other strategic actions; our success in completing, including obtaining regulatory approvals for, announced transactions, such as the proposed transactions and alliances with Alstom, Appliances and our announced plan to reduce the size of our financial services businesses, and our ability to realize anticipated earnings and savings; our success in integrating acquired businesses and operating joint ventures; the impact of potential information technology or data security breaches; and the other factors that are described in "Risk Factors" in our Annual Report on Form 10-K for the year ended December 31, 2014. These or other 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 includes certain forward-looking projected financial information that is based on current estimates and forecasts. Actual results could differ materially. This document also contains 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. In this document, “GE” refers to the Industrial businesses of the Company including GECC on an equity basis. “GE (ex-GECC)” and/or “Industrial” refer to GE excluding Financial Services. GE’s Investor Relations website at www.ge.com/investor and our corporate blog at www.gereports.com, as well as GE’s Facebook page and Twitter accounts, contain a significant amount of information about GE, including financial and other information for investors. GE encourages investors to visit these websites from time to time, as information is updated and new information is posted. Imagination at work. 3Q’15 overview Environment Execution versus goals Slow growth and volatile environment continues GE Capital exits ahead of plan … $126B signed, $60B closed YTD GE executing well: Industrial operating + Verticals-a) EPS $.29, +16% … Industrial EPS +9% Industrial segment OP margins +100 bps. with gross margins +80 bps. Industrial CFOA YTD $6.1B, +23% Significant portfolio pivot … execution is accelerating Ind. segments Orders Revenue Op Profit Reported Organic (26)% (1)% 5% (23)% 4% 9% 2015 Goals Grow Industrial segments Organic growth (2-5%) Margin expansion 3QYTD +11% 6% organic 4% 100 bps. GECC Verticals-a) EPS ~$.15 $.12 GECC cash to parent $0.5B dividend Disciplined/balanced capital allocation CFOA $14-16B-b) $6.5B FCF + disp. $12-15B $4.6B Cash to investors $10-30B $7.2B Portfolio actions $126B GECC signed YTD Synchrony launch next week-c) Alstom close imminent Appliances review continues (a- Verticals include businesses expected to be retained including allocated corporate costs (b- Taxes associated with dispositions included in net disposition proceeds (c- Subject to market conditions 2 Alstom Deal/remedies update … Economics intact … • European Commission approval • Purchase price ~$9.5B • DOJ filed proposed consent decree • Earnings per share $.15-.20 • GE will divest to Ansaldo: − Alstom’s GT26 new unit sales − Alstom’s GT36 technology development program − Services contracts for 34 GT26s • GE will divest Alstom’s PSM business … license agreement in place Expect deal to close in 4Q $.05-.08 $(.01)-(.02) 2015E 2016F 2018F • Year 5 gross cost synergies ~$3B • Strong deal returns This is a good deal for GE 3 Synchrony update Received Federal Reserve approval for Synchrony separation Split exchange mechanics At launch: File S-4 & exchange offer terms set (week of Oct. 19th) Offer period: 20 business days Day 16-18: Determine final exchange ratio Day 20: Close week of Nov. 16th (subject to extension for pricing/material amendments) Plan is to launch Synchrony exchange next week … subject to market conditions Expect proceeds of $18-21B-a) and buyback of 650-750MM shares-a) Gain embedded in proceeds and buyback … no impact to GECC capital levels Expect to retire 6-7% of GE float by mid-November 4 (a- At current prices; dependent on offer terms and movement of GE & SYF stock prices prior to and during exchange GE Capital update 4Q’14 ENI (ex-liquidity), $ in billions ’15E signings ~$140-150B Portfolio sales $126 Activity since 2Q Synchrony ~$65B ~$100 $58 ~$70 $60 Signed deals In market Goals ’15E closings Latest view 1 ~$90B asset sales in ’15 ~$100B 2 All sales committed by ’17 Largely done by ’16 3 ~$35B dividend to GE On track 4 Timing of dividends Better 5 SIFI de-designation application Targeting 1Q’16 Deal pricing slightly above original estimate … 1.4X P/TBV vs. 1.3X (1.1X total plan) Higher forgone income as a result of accelerated asset sales ALM actions, including $36B debt exchange, offset excess interest costs from accelerated sales In line with $23B estimated exit impact … $21B taken to date 2015 ENI ~$175B (including disc ops) with accelerated sales and Synchrony split Expect ~$3B dividend-a) in ’15 … on track for ~$18B in ’16 5 (a- Subject to regulatory approval 3Q’15 orders $23.2B, (26)% ($ in billions) Equipment $ V% Power Power&&Water Water Oil Oil&&Gas Gas Energy EnergyMgmt. Mgmt. Aviation Aviation Healthcare Healthcare Transportation Transportation Total Total Ex. FX $3.5 1.1 1.6 2.8 2.6 0.1 $11.2 7% (60) 6 (58) (5) (95) (43)% (40)% Backlog ($B) Services $ V% $3.4 2.0 0.5 3.7 1.9 0.7 $12.0 8% (13) (8) 13 (3) (5) 2% 6% $266 $268 $272 $270 $256 $252 $249 $250 72 70 70 71 70 64 Equip. 64 65 Services 185 Orders price profile 0.2% +1.5% 195 198 200 199 1Q'14 2Q'14 3Q'14 4Q'14 1Q'15 2Q'15 3Q'15 Services strength continues …+6% organically … PGS +10%, Aviation spares rate +28% Large one-time orders in 3Q’14 for GE9X and Tier 4 … $6B headwind (0.2)% (1.7)% (1.9)% EM 186 YTD orders are (4)% organically +1.5% O&G 188 Highlights +0.1% P&W '13 185 Aviation Healthcare Trans. Power & Water +13% and Healthcare +3% organically Oil & Gas impacted by industry dynamics … (32)% organically 6 Industrial segment execution Revenue growth 4% YTD organic +4% Segment Segment gross margins OP margins 27.6% 17.3% (1)% 3Q reported 3Q organic Industrial -a) OP margins 15.5% +80 bps. +100 bps. +120 bps. 3Q’15 3Q’15 3Q’15 Growth highlights + Industrial segment organic growth +4% with 6/7 segments up … 9th quarter of organic growth + U.S. revenue +5%, growth markets (7)% … YTD growth markets flat + Services revenue +6%, equipment +2% ex. FX YTD + Orders for software/analytics +16%; gaining momentum for GE Digital + NPIs driving momentum … 4 H unit orders, 21 in backlog; Power Conversion organic growth of 15%; 6 LM6000PF+ for efficient power; Life Sciences revenue +8% ex. FX including manufacturing launch in China; locomotive units grew by 18% + Long-term commitment to Aviation innovation & execution for customers … $142B backlog Segment drivers Mix Value gap (price/inflation) Cost productivity Gross Margins Simplification (SG&A) Base inflation/other Op Profit Margins 3Q 0.1 pts 0.3 0.4 YTD +0.8 pts. +70bps. 0.3 (0.1) YTD +1.0 pts. +100bps. Segment equipment margins +40 bps., service margins +90 bps. YTD 7 (a- Industrial includes Corporate, excluding gains and restructuring Generating cash ($ in billions) 3Q YTD CFOA $7.2 GECC dividend 2.2 Industrial 5.0 $6.5 V% GE cash balance walk Total (9)% 0.5 (80)% 6.1 23% 2014 2015 FCF $4.8 $4.3 (9)% Ind’l. FCF $2.5 $3.9 53% 3Q YTD Industrial cash flow $6.1B, +23% … 3Q Industrial cash flow $2.6B, (14)% No GE Capital dividend in 3Q … expect additional ~$2.5B dividend-a) in 4Q Beginning balance 1/1/15 $15.9 CFOA 6.5 Dividends (7.0) Net P&E (2.2) Acquisitions (0.1) Buyback (0.2) Debt issuance 3.4 Other 0.4 September 2015 $16.8 + Cash returned to investors will be ~$30B with Synchrony-b) + Expect CFOA at high end of range … ~$16B (a- Subject to regulatory approval (b- Subject to market conditions Note: Individual amounts are rounded. As a result, the sum of the parts presented may not add to the total. 8 3Q’15 consolidated results ($ in millions) ($ in billions – except EPS) 3Q’15 Revenues $31.7 – Industrial revenue 25.8 – Verticals-a) revenue 2.6 -b) – Other GECC revenue 3.7 Industrial + Verticals EPS Operating EPS Continuing EPS Net EPS CFOA YTD – Industrial Consolidated tax rate – GE (ex-GECC) – GECC .29 .32 .28 .25 $6.5 6.1 3Q’15 11% 17 (6 ) V% (1)% (2) (3) 0 Revenues $ Segment profit $ $6,461 V% 1% Oil & Gas 3,868 (16) 584 (12) 16 3 – (29) Energy Mgmt. 1,773 (2) 127 F Aviation 6,001 5 1,353 7 Healthcare 4,255 (5) 652 (10) (9) 23 3Q’14 13% 18 (2) Transportation 1,593 3 379 11 Appliances & Lighting 2,293 8 165 88 Power & Water Organic Industrial Segments 26,243 (1)/4 GE Capital Verticals-a) 2,577 (3) Ind. Seg. + Verticals Industrial + Verticals EPS Industrial operating GE Capital Verticals-a) $28,820 3Q’15 V% $.25 $.03 $.29 9% 50% 16% (a- Verticals include businesses expected to be retained including allocated corporate costs (b- Other GE Capital includes the Consumer segment, GE Capital HQ run-off, & exit-related items Note: Individual amounts are rounded. As a result, the sum of the parts presented may not add to the total. $1,270 V% 7% Organic 4,530 5/9 351 55 (2)% $4,881 7% 9 Earnings dynamics (after tax, $ in millions – except EPS) 3Q’15 Net income 3Q’15 EPS $2,569 $0.25 9% 351 0.03 50% $2,920 $0.29 16% Consumer 795 0.08 33% Other GE Capital-b) (411) (0.04) U $3,303 $0.32 3% (450) (0.04) (33)% $2,853 $0.28 0% (347) (0.03) U $2,506 $0.25 (29)% Earnings walk Industrial operating Verticals-a) Industrial + Verticals earnings Operating earnings Non-operating pension Continuing earnings CRE/CLL earnings/other disc. ops. Net earnings EPS V% Industrial + Verticals EPS $.29, +16% … strong Industrial growth, +9% (a- Verticals include businesses expected to be retained including allocated corporate costs (b- Other GE Capital includes HQ run-off & exit-related items Note: Individual amounts are rounded. As a result, the sum of the parts presented may not add to the total. 10 3Q’15 Industrial other items Restructuring & other items EPS $(.02) $(346)MM pre-tax, $(244)MM after-tax Structural cost actions, acquisition-related & other costs; includes pension mortality impact 2015 summary 1H 3Q 4QE TYE Restructuring & other items-a) $(.06) $(.02) ~$(.06) ~$(.14) Gains & settlements-a) $.03 $– ~$.11 ~$.14 $(.03) $(.02) ~$.05 ~$– Total Gains = restructuring for the year but variability in quarterly timing 11 (a- After tax impact based on estimated transactional tax rates Industrial segments ($ in millions) Power & Water 3Q’15 Oil & Gas $ V% 3Q’15 Revenues $6,461 1% Revenues Segment profit $1,270 7% Op profit % 19.7% 1.0 pts. $ V% $3,868 (16)% Segment profit $584 (12)% Op profit % 15.1% 0.7 pts. 3Q dynamics 3Q dynamics • $6.9B orders, +8% ... equipment +7% with DP +61%, Renewables +2% and Thermal (6)%; services +8% with PGS +10% • $3.0B orders, (38)% … equipment (60)% with every segment down; services (13)%, (4)% organic • Revenue … equipment (6)% with Renewables +8% offset by Thermal (10)% on lower units, DP (13)%; services +9% • Revenue ... (7)% organic with equipment (18)%, (8)% organic and services (14)%, (5)% organic • Margins +100 bps. driven by base cost productivity and services growth • Operating profit flat organically; margins +70 bps. on higher value gap driven by cost deflation Strong margin expansion despite tough market dynamics 12 Industrial segments ($ in millions) Aviation 3Q’15 Healthcare $ V% 3Q’15 Revenues $6,001 5% Revenues Segment profit $1,353 7% Op profit % 22.5% 0.3 pts. 3Q dynamics • $6.5B orders, (35)% … equip. (58)% on lower GE90/9X orders; services +13% with spares +28% … $142B backlog, +11% VPY $ V% $4,255 (5)% Segment profit $652 (10)% Op profit % 15.3% (0.9) pts. 3Q dynamics • $4.5B orders, (4)%, +3% ex. FX … emerging markets (5)%, +4% ex. FX; U.S. (1)%; Europe (5)%, +11% ex. FX, China (1)% • Revenue … equip. (6)% on lower volume with comm’l. (1)% & military (20)%; services +17% • Revenue (5)%, +2% ex. FX with HCS +1% & Life Sciences +8% ex. FX … emerging markets (3)% • Segment profit +7% on strong services volume ex. FX; developed +3% ex. FX and positive value gap … margins +30 bps. • Segment profit (10)%, (4)% organic Aviation … tough orders comparisons but continued strong operating results Healthcare … better developed markets offset by emerging; R&D investments 13 Industrial segments ($ in millions) Transportation 3Q’15 Revenues Segment profit Op profit % $ V% • $0.9B orders, (77)% … Tier 4 comparisons • Revenue … equipment (2)% with locomotive 11% shipments +18%, Mining (45)%; services +10% 1.6 pts. • Margins +160 bps. driven by strong value gap $1,593 3% $379 23.8% Energy Management 3Q’15 Revenues Segment profit Op profit % $ $1,773 $127 7.2% 3Q dynamics 3Q dynamics • $2.1B orders, +2%, +8% ex. FX … equipment +6% driven by Power Conversion; services (8)% (2)% • Revenue … Digital Energy +2%, Power Conversion F flat, Industrial Solutions (4)%; organic revenue +6% 3.9 pts. • Margins +390 bps. driven by continued simplification V% Appliances & Lighting 3Q’15 Revenues Segment profit Op profit % $ $2,293 $165 7.2% V% 8% 3Q dynamics • Revenue … Appliances +10%; Lighting +5% … trad’l. channels (15)%, LED +65% … now 39% of business 88% • Op profit +88% with margin improvement driven 3.0 pts. by cost productivity 14 GE Capital ($ in millions) 3Q’15 performance GE Capital update Earnings Verticals-a) $351 Consumer 795 Run-off/HQ (411) Continuing Operations $734 Earnings from disc. ops. (347) Total GECC $387 • $176B of ENI ex-liq. … $271 incl. disc. ops. • $97B of liquidity-b) … $82B ex-Synchrony • Basel 3 T1C-c) at 13.7%, up 230 bps. VPQ Verticals … on track to deliver $1.5B for 2015 … supporting GE Store with pullthrough financing Asset sales ahead of plan … ~$126B signed to date and $60B closed Synchrony separation approved … 4Q split on track Expect Consumer to move to discontinued operations in 4Q Planning to apply for SIFI rescission in 1Q’16 Strong operational execution (a- Verticals include businesses expected to be retained including allocated corporate costs (b- Liquidity includes cash & equivalents in continuing & discontinued operations & businesses held for sale & certain debt obligations of the U.S. Treasury (c- Basel 3 Tier 1 Common ratio estimated based on U.S. standardized transitional basis Note: Individual amounts are rounded. As a result, the sum of the parts presented may not add to the total. 15 2015 operating framework Operating EPS 1 Industrial $1.10-1.20 $1.13-1.20 + + + + Industrial operating EPS up double digits … YTD +15% Segment organic growth of 2-5% & margin expansion Corporate ~$2.3B BD … expect deals to close in 4Q15-a) 2 GE Capital retained ~$.15 businesses (Verticals) + Verticals on track 3 Capital asset sales ~$90B ~$100B + Impact from GE Capital exit … targeting ~$100B closed in 2015; +$65B ENI reduction for Synchrony … signings of $126B drive momentum in ’16 4 Free Cash Flow + Dispositions $12-15B + + + + 5 Cash Returned to Investors $10-30B ~$30B + Dividend of ~$9B; buyback based on GE Capital dividend + Synchrony split-off estimate $18-21B-c) CFOA of ~$16B-b); based on ~$3B GE Capital dividend-a) P&E of ~$4-4.5B Dispositions of $2-4B … Appliances-a) ~$2B FCF + dispositions at high-end of range, including Appliances proceeds-a) (a- Subject to regulatory approval (b- Taxes associated with dispositions included in net disposition proceeds (c- At current prices; dependent on offer terms and movement of GE & SYF stock prices prior to and during exchange 16