2015 2Q

GE 2Q’15
supplemental information
• Orders & backlog by segment
• Equipment orders
• Equipment/service revenue by segment - 2Q’15
• Equipment/service revenue by segment - 2Q’15 YTD
• GE Industrial segment organic revenue growth
• GE Industrial segment organic op profit growth
• Oil & Gas organic op profit growth
• Organic revenue by Segment
• Updated Oil & Gas services backlog
• Units summary – orders
• Units summary – sales
• Regional summary
• Corporate operating profit (cost)
• Operating earnings & EPS
• Industrial operating earnings & EPS
• Industrial operating plus Verticals earnings & EPS
• GE effective tax rate (ex-GECC)
• Industrial CFOA from continuing operations
• Free cash flow
Imagination at work.
• GE Capital segment results
• GE Capital Verticals results
• GE Capital segment assets
• GE Capital nonaccrual/net chargeoffs
• GECC funding
• GECC leverage ratio
• GECC tier 1 common ratio estimate
• GE Capital ending net investment
• GE Capital reserves
Orders & backlog by segment
($ in billions)
Power & Water
2Q'15
Orders
$7.8
V%
22%
2Q'15 YTD
Orders
$12.2
V%
2%
2Q'15
Backlog
$64.3
V%
2%
Oil & Gas
4.2
(20)
8.5
(14)
23.6
(2)
Energy Management
2.0
5
4.1
1
5.5
10
Aviation
7.6
30
15.0
33
142.2
12
Healthcare
4.7
(3)
8.9
(2)
15.8
(5)
Transportation
1.4
(5)
2.9
(26)
21.1
32
Infrastructure
$27.1
8%
$50.2
3%
$272.1
8%
2
Equipment orders
($ in billions)
3Q'14
$3.3
V%
8%
Oil & Gas
2.6
14
2.5
(15)
2.2
(10)
2.2
(14)
2.4
(7)
Energy Management
1.5
1
1.6
(5)
1.5
(6)
1.5
6
1.5
(1)
Aviation
6.8
35
4.4
8
3.9
64
4.0
37
4.8
33
Healthcare
2.7
-
3.4
2
2.3
(1)
2.7
(3)
2.8
(1)
Transportation
3.1
F
1.2
F
0.8
(56)
0.5
(19)
1.4
42
Infrastructure
$19.7
31%
$18.4
0%
$12.0
Power & Water
4Q'14 V%
$5.6
(12)%
1Q'15 V%
$1.8
(29)%
(5)%
2Q'15
$3.9
$14.5
V%
29%
Four
qtr.
rolling
average V%
$3.6
(3)%
11%
$16.2
9%
Note: Individual amounts are rounded. As a result the sum of the parts presented may not add to the total
3
Equipment/service revenue by segment – 2Q’15
($ in billions)
2Q'15
Equipment
Power & Water
V%
2Q'15
Services
V%
2Q'15
Total
V%
$3.4
10%
$3.4
6%
$6.8
8%
Oil & Gas
2.1
(20)%
2.0
(9)%
4.1
(15)%
Energy Management
1.3
(6)%
0.5
0%
1.8
(5)%
Aviation
3.1
0%
3.1
6%
6.3
3%
Healthcare
2.4
(3)%
1.9
(3)%
4.3
(3)%
Transportation
0.6
13%
0.8
6%
1.4
9%
Appliances & Lighting
2.1
6%
0.1
(4)%
2.2
5%
$15.1
(1)%
$11.8
1%
$26.9
0%
Industrial segments
Note: Individual amounts are rounded. As a result the sum of the parts presented may not add to the total
4
Equipment/service revenue by segment – 2Q’15 YTD
($ in billions)
2Q'15 YTD
Equipment
Power & Water
$6.3
V%
6%
2Q'15 YTD
Services
$6.2
V%
7%
2Q'15 YTD
Total
$12.5
V%
6%
Oil & Gas
4.1
(16)
3.9
(6)
8.0
(12)
Energy Management
2.5
(3)
1.0
1
3.5
(2)
Aviation
5.8
(4)
6.1
5
11.9
-
Healthcare
4.6
(4)
3.8
(2)
8.4
(3)
Transportation
1.4
17
1.4
(1)
2.7
8
Appliances & Lighting
4.0
6
0.2
(6)
4.2
5
Industrial segments
$28.7
(2)%
$22.6
2%
$51.2
0%
Note: Individual amounts are rounded. As a result the sum of the parts presented may not add to the total
5
GE Industrial segment organic revenue growth
($ in millions)
2Q'15
2Q'14
V%
2Q'15
YTD
$26,875
$26,908
0%
$51,235 $51,457
(1,211)
285
Industrial segment revenues excluding the
effects of acquisitions, business dispositions
(other than dispositions of businesses
acquired for investment), currency
exchange rates
$28,086
$26,623
Industrial segment revenue
Less the effects of:
Acquisitions, business dispositions
(other than dispositions of businesses
acquired for investment) & currency
exchange rates
(1,980)
5%
2Q'14
YTD
V%
0%
487
$53,215 $50,970
4%
6
GE Industrial segment organic op profit growth
($ in millions)
2Q'15
Industrial segment op profit
Less the effects of:
Acquisitions, business dispositions
(other than dispositions of businesses
acquired for investment) & currency
exchange rates
Industrial segment op profit excluding the
effects of acquisitions, business dispositions
(other than dispositions of businesses
acquired for investment), currency
exchange rates
2Q'14
$4,356
$4,166
(207)
58
$4,563
$4,108
V%
5%
11%
2Q'15
YTD
2Q'14
YTD
$7,916
$7,445
(315)
61
$8,231
$7,384
V%
6%
11%
7
Oil & Gas organic op profit growth
($ in millions)
2Q'15
2Q'14
V%
Industrial segment op profit
$583
$665 (12)%
Less the effects of:
Acquisitions, business dispositions
(other than dispositions of businesses
acquired for investment) & currency
exchange rates
(108)
8
Industrial segment op profit excluding the
effects of acquisitions, business dispositions
(other than dispositions of businesses
acquired for investment), currency
exchange rates
$691
$657
5%
2Q'15
YTD
2Q'14
YTD
$1,015
$1,111
(172)
8
$1,187
$1,103
V%
(9)%
8%
8
Organic revenue by segment
($ in millions)
2Q'15
2Q'14
V%
2Q'15 YTD
2Q'14 YTD
V%
12,517
(651)
13,168
11,801
46
11,755
8,023
(592)
8,615
9,069
284
8,785
(12)%
3,453
(266)
3,719
3,528
8
3,520
(2)%
11,926
11,926
11,868
115
11,753
0%
8,412
(414)
8,826
8,681
34
8,647
(3)%
2,728
2,728
2,533
2,533
8%
4,176
(57)
4,233
3,977
3,977
5%
Power & Water
Reported Revenue
Less Acq./Disp. & FX
Organic Revenue
6,801
(373)
7,174
6,292
40
6,252
8%
4,062
(353)
4,415
4,761
163
4,598
(15)%
1,768
(155)
1,923
1,856
4
1,852
(5)%
6,252
6,252
6,090
73
6,017
3%
4,337
(297)
4,634
4,483
5
4,478
(3)%
1,420
1,420
1,306
1,306
9%
2,235
(33)
2,268
2,120
2,120
5%
15%
6%
12%
Oil & Gas
Reported Revenue
Less Acq./Disp. & FX
Organic Revenue
(4)%
(2)%
Energy Management
Reported Revenue
Less Acq./Disp. & FX
Organic Revenue
4%
6%
Aviation
Reported Revenue
Less Acq./Disp. & FX
Organic Revenue
4%
1%
Healthcare
Reported Revenue
Less Acq./Disp. & FX
Organic Revenue
3%
2%
Transportation
Reported Revenue
Less Acq./Disp. & FX
Organic Revenue
9%
8%
Appliances & Lighting
Reported Revenue
Less Acq./Disp. & FX
Organic Revenue
7%
9
6%
Updated Oil & Gas services backlog
($ in billions)
Backlog as reported:
Infrastructure
Equipment
Service
Total backlog
4Q'13
63.9
180.2
244.1
1Q'14
64.5
180.8
245.3
2Q'14
63.9
182.5
246.4
3Q'14
69.9
180.5
250.4
4Q'14
71.3
189.5
260.7
1Q'15
69.7
193.3
263.0
Oil & Gas
Equipment
Service
Oil & Gas backlog
4Q'13
13.0
5.8
18.8
1Q'14
13.2
5.7
18.9
2Q'14
12.9
5.7
18.6
3Q'14
12.9
5.7
18.6
4Q'14
12.0
7.0
19.0
1Q'15
11.1
6.6
17.7
4Q'13
4.5
1Q'14
4.6
2Q'14
5.4
3Q'14
5.4
4Q'14
5.2
1Q'15
4.6
Infrastructure
Equipment
Service
Total backlog
4Q'13
63.9
184.7
248.6
1Q'14
64.5
185.4
250.0
2Q'14
63.9
187.9
251.8
3Q'14
69.9
185.8
255.8
4Q'14
71.3
194.7
265.9
1Q'15
69.7
197.9
267.6
Oil & Gas
Equipment
Service
Oil & Gas backlog
4Q'13
13.0
10.2
23.2
1Q'14
13.2
10.4
23.6
2Q'14
12.9
11.1
24.0
3Q'14
12.9
11.0
24.0
4Q'14
12.0
12.2
24.2
1Q'15
11.1
11.2
22.3
Updated Oil & Gas:-a)
Oil & Gas
Service
Updated backlog:
(a- Oil & Gas service backlog was updated to include non-CSA related services backlog in order to be consistent with reporting across industrial segments
Note: Individual amounts are rounded. As a result the sum of the parts presented may not add to the total
10
Units summary – orders
2Q'15
2Q'14
V
2Q'15
YTD
2Q'14
YTD
V
Power & Water:
Gas Turbines
Wind Turbines
18
888
10
715
8
173
39
1,264
41
1,137
(2)
127
Aviation:
CEO engines
GEnx engines-a)
Military engines
Spares rate-b)
981
38
177
$37.9
1,061
13
163
$28.4
(80)
25
14
$9.5
2,200
85
312
$38.4
1,857
19
454
$29.1
343
66
(142)
$9.3
Transportation:
Locomotives
120
138
(18)
310
397
(87)
(a- GEnx engines are a subset of CEO engines
(b- Commercial spares rate in millions of dollars per day
11
Units summary – sales
2Q'15
2Q'14
2Q'15
YTD
V
2Q'14
YTD
V
Power & Water:
Gas Turbines
Wind Turbines
24
806
21
510
3
296
63
1,278
38
1,156
25
122
Aviation:
CEO engines
GEnx engines-a)
Military engines
Spares rate-b)
685
86
174
$37.2
652
75
261
$28.7
33
11
(87)
$8.5
1,334
137
343
$36.9
1,298
145
509
$28.6
36
(8)
(166)
$8.3
Transportation:
Locomotives
191
165
26
406
343
63
(a- GEnx engines are a subset of CEO engines
(b- Commercial spares rate in millions of dollars per day
12
Regional summary
($ in billions)
Infrastructure Orders
2Q'15
Resource Rich-a)
Asia-b)
$8.4
3.0
V%
9%
(14)
2Q'15
YTD
$15.2
5.8
Industrial Segment Revenues
V%
2Q'15
V%
0%
$7.3
(2)%
(3)
3.2
11
2Q'15
YTD
$14.6
5.6
V%
1%
8
Growth Regions
$11.4
2%
$21.1
(1)%
$10.5
1%
$20.2
3%
Developed-c)
$15.7
13%
$29.1
5%
$16.4
(1)%
$31.1
(3)%
Total
$27.1
8%
$50.2
3%
$26.9
0%
$51.2
0%
(a- Resource Rich: Australia & New Zealand, Canada, Latin America, MENAT, Russia/CIS, & Sub-Saharan Africa
(b- Asia: ASEAN, China & India
(c- Developed: US, Europe, Japan, & Korea
Note: Individual amounts are rounded. As a result, the sum of the parts presented may not add to the total
13
Corporate operating profit (cost)
($ in millions)
2Q'15
2Q'14
2Q'15
YTD
2Q'14
YTD
Gains (losses) on disposed businesses-a)
$499
$91
$499
$91
Principal retirement plans-b)
(673)
(582)
(1,462)
(1,163)
Restructuring and other charges
(399)
(407)
(821)
(783)
Other Corporate costs & eliminations
(613)
(576)
(1,094)
(1,161)
(1,186)
(1,474)
(2,878)
(3,016)
Less: Non-operating pension cost
(689)
(529)
(1,384)
(1,055)
Total Corporate (operating)
(497)
(945)
(1,494)
(1,961)
100
(316)
(322)
(692)
($597)
($629)
($1,172)
($1,269)
Total Corporate costs (continuing)
Less: restructuring & other, gains
Adjusted Total Corporate (operating)
(a- Includes NBCU settlement
(b- Includes non-operating pension
14
Operating earnings & EPS
($ in millions except earnings per share)
2Q'15
Earnings from continuing operations
attributable to GE
Adjustment (net of tax): non-operating
pensions costs/(income)
Operating earnings
$2,390
448
2Q'14
V%
$2,884 (17)%
2Q'15
YTD
2Q'14
YTD
($4,944)
$5,185
900
686
344
V%
U
$2,838
$3,228 (12)%
($4,044)
$5,871
U
$0.24
$0.28 (14)%
($0.49)
$0.51
U
0.09
0.07
($0.40)
$0.58
Earnings per share – diluted-a)
Continuing earnings per share
Adjustment (net of tax): non-operating
pensions costs/(income)
Operating earnings per share
0.04
$0.28
0.03
$0.32 (13)%
U
(a- Earnings per share amounts are computed independently. As a result, the sum of per share amounts may not equal the total
15
Industrial operating earnings & EPS
($ in millions except earnings per share)
2Q'15
Operating earnings
2Q'14
V%
2Q'15
YTD
2Q'14
YTD
V%
$2,838
$3,228
(12)%
($4,044)
$5,871
U
218
1,002
(78)%
(8,289)
2,248
U
Industrial operating earnings
2,620
2,226
18%
4,245
3,623
17%
Operating earnings per share
$0.28
$0.32
(13)%
($0.40)
$0.58
U
GE Capital operating EPS -a)
0.02
0.10
(80)%
(0.82)
0.22
U
Industrial operating EPS -a)
0.26
0.22
18%
0.42
0.36
17%
GE Capital operating earnings
(a- Earnings per share amounts are calculated as percent of operating earnings. Earnings per share amounts are computed independently. As a result, the sum of per
share amounts may not equal the total
16
Industrial operating plus Verticals earnings & EPS
($ in millions except earnings per share)
V%
2Q'15
YTD
(12)%
(4,044)
5,871
(9,166)
1,275
18%
19%
18%
5,122
877
4,245
4,596
973
3,623
11%
(10)%
17%
(13)%
(0.40)
0.58
U
(0.91)
0.13
19%
0.51
0.45
13%
0.04
25%
0.09
0.10
(10)%
0.22
18%
0.42
0.36
17%
2Q'15
2Q'14
Operating earnings
2,838
3,228
Less: Other GE Capital
(313)
555
Industrial operating plus Verticals earnings
GE Capital Verticals earnings
Industrial operating earnings
3,151
531
2,620
2,673
447
2,226
0.28
0.32
(0.03)
0.05
Industrial operating plus Verticals EPS
0.31
0.26
GE Capital Verticals EPS -a)
0.05
Industrial operating EPS -a)
0.26
Earnings per share - diluted -a)
Operating earnings per share
Less: Other GE Capital
2Q'14
YTD
V%
U
(a- Earnings per share amounts are calculated as percent of operating earnings. Earnings per share amounts are
computed independently. As a result, the sum of per share amounts may not equal the total.
17
GE effective tax rate (ex-GECC)
($ in millions)
2Q'15
GE earnings from continuing operations
before income taxes
2Q'14
2Q'15
YTD
2Q'14
YTD
$3,106
$3,283
($4,048)
$5,844
$379
$1,163
($8,128)
$2,409
Adjusted earnings from continuing ops.
before income taxes
$2,727
$2,120
$4,080
$3,435
GE (ex-GECC) provision for income taxes
– continuing ops.
$584
$409
$890
$727
21%
19%
22%
21%
Less GECC earnings from continuing ops.
attributable to the company
Effective tax rate GE (ex-GECC)
18
Industrial CFOA from continuing operations
($ in millions)
Cash from GE's operating activities as reported
Less GECC dividends
Cash from GE's operating activities excluding
dividends from GECC (Industrial CFOA)
2Q'15
2Q'14
V%
2Q'15
YTD
$2,609
$1,621
61%
$3,950
$3,371
-
916
450
1,416
$2,609
$705
$3,500
$1,955
F
2Q'14
YTD
V%
17%
79%
19
Free cash flow
($ in millions)
2Q'15
YTD
2Q'14
YTD
Cash from GE's operating activities as reported
$3,950
$3,371
Less: Additions to property, plant and equipment
Plus: Dispositions of property, plant and equipment
$1,889
376
$2,022
234
Free cash flow
$2,437
$1,583
Note: Individual amounts are rounded. As a result the sum of the parts presented may not add to the total.
V%
17%
54%
20
GE Capital segment results
($ in millions – net earnings)
2Q’15
2Q’14
V%
CLL
$96
$86
12%
Consumer
459
472
(3)
EFS
109
76
43
GECAS
361
343
5
(646)
186
U
379
1,163
(67)%
Preferred stock dividends
(161)
(161)
-
GE Capital segment profit
$218
$1,002
Earnings (loss) from discontinued ops.
$(3,747)
$665
U
Total GECC net earnings (loss)
$(3,529)
$1,667
U
GECC Corporate
Earnings from continuing ops.
(78)%
21
GE Capital - Verticals results
($ in millions – net earnings)
GECAS
EFS
Other-a)
Allocated corporate costs
Subtotal
Additional HEF portfolio
moved to disc. ops.-c)
Verticals
Other continuing
GE Capital segment
profit/(loss)
1Q’14
2Q’14
3Q’14
4Q’14
1Q’15
2Q’15
$352
$343
$133
$218
$307
$361
153
76
61
111
35
109
83
90
92
141
68
86
(58)
(58)
(58)
(58)
(58)
(25)-b)
$530
$451
$228
$412
$352
$531
(4)
(4)
(2)
(4)
(6)
-
$526
$447
$226
$408
$346
$531
720
555
617
709
(8,853)
(313)
$1,246
$1,002
$843
$1,117
$(8,507)
$218
(a- Includes Healthcare Equipment Finance, Working Capital Solutions, & run-off Insurance
(b- Revised estimate for allocated corporate costs
22
(c- Subsequent to the April 10th announcement, ~$1 billion of additional Healthcare Equipment Finance assets were moved to Discontinued
Operations
GE Capital segment assets
($ in billions)
2Q’15
2Q’14
CLL
$19.9
$19.2
4%
Consumer
122.3
134.6
(9)
EFS
16.2
15.8
2
GECAS
46.1
43.9
5
104.0
104.2
-
$308.5
$317.7
154.9
194.3
$463.3
$512.1
GECC Corporate
GE Capital segment assets
Assets of discontinued operations
GECC total assets
V%
(3)%
(20)
(10)%
23
GE Capital nonaccrual/net charge-offs -a)
($ in millions)
Nonaccrual assets/nonaccrual % fin. rec.
Total net charge-offs/net charge-offs % fin. rec.
2Q’15
1Q’15
2Q’14
$20
0.16%
$25
0.21%
$31
0.24%
GECAS
318
4.22
255
3.26
153
1.81
GECAS
EFS
28
1.00
63
2.36
76
2.74
EFS
Consumer
2
0.00
2
0.00
2,419
2.36
-
-
$368
0.44%
$345
0.42%
CLL
GECC Corporate
GE Capital
$2,679
2.11%
2Q’15
1Q’15
2Q’14
$4
0.13%
$3
0.09%
$1
0.03%
-
7
0.32
5
0.73
15
2.29
(1)
(0.14)
Consumer
732
4.89
3,589
18.05
814
3.13
GECC Corporate
13
9.19
-
-
$754
3.64%
$3,607
13.87%
$821
2.55%
CLL
GE Capital
-
(a - Real estate and the majority of CLL have been classified as discontinued operations. As a result, prior periods have been recasted accordingly.
24
GECC funding
($ in billions)
Debt composition –a)
Non-recourse
Securitization
LT debt
$333
19
Bank lines
CP coverage
Liquidity -d)
LT debt <1yr.
$304
18
226
Deposits/CDs
Alternative
funding/other
Comm’l. paper
Unsecured term issuances
198
$32
$296-b) -c)
17
193
42
21
25
43
20
25
46
15
25
2Q'14
1Q'15
2Q'15
$46
100%+
$77
$38
$45
100%+
$78
$35
$45
100%+
$85
$36
'13
$10
$8–e)
'14
'15
• Completed $8B of LT debt issuance in 1Q’15 in
3 currencies
• No incremental LT debt issuance currently
expected in line with April 10th announcement
• Deposits/CDs and other alternative funding
~21% of total debt, securitization ~6%
• Liquidity position remains strong
(a - Continuing operations (excludes obligations issued to third parties that we reported in Discontinued operations or Held-for-Sale)
(b - Includes ~$(7.0)B YTD FX impact and ~$(1.1)B YTD FAS 133
(c - Includes ~$61B of Synchrony borrowings
(d - Liquidity includes cash & equivalents (including discontinued operations and held for sale balances) and ~$3.3B of debt obligations of the U.S. Treasury 25
(e - Excludes ~$1.0B of unsecured Synchrony issuance
GECC leverage ratio-a)
($ in billions)
As reported
Debt
Equity-b)
Leverage ratio
Debt
Less: Liquidity-c)
Adjusted debt
Equity-b)
Adjusted leverage ratio
2Q’15
1Q’15
2Q’14
$326.8
67.0
$338.9
70.7
$363.2
85.8
4.9
4.8
4.2
326.8
(84.6)
242.2
338.9
(78.2)
260.7
363.2
(76.6)
286.6
67.0
70.7
85.8
3.6
3.7
3.3
(a - Includes discontinued operations and balances recorded as held for sale for all periods
(b - Total equity ex-non-controlling interests
(c - Liquidity includes cash & equivalents and $3.3B of debt obligations of the U.S. Treasury as of 2Q’15
26
GECC tier 1 common ratio estimate-a)
($ in billions)
2Q’15
1Q’15
2Q’14
$67.0
$70.7
$85.8
(4.9)
(18.5)
1.1
(4.9)
(22.0)
1.2
(4.9)
(26.7)
0.3
44.7
45.0
54.5
Estimated risk weighted assets
393.4
422.8
456.9
Tier 1 common ratio
11.4%
10.6%
11.9%
9.6%
9.4%
11.0%
As reported
Shareowners' equity –b)
- Preferred equity
- G/W & Intangibles
- Other additions/(deductions)
Tier 1 common
Tangible Common Equity/Tangible Assets
(a - Based on Basel 3 standardized approach on a transitional basis; includes discontinued operations for all periods
(b - Total equity ex-non-controlling interests
27
GE Capital ending net investment
($ in billions)
2Q’15-b) 1Q’15-a) 4Q’14-a) 3Q’14-a) 2Q’14-a)
GECC total assets
$463.3
$476.5
$500.2
$506.9
$509.6
Less: assets of discontinued operations (154.9)
(31.3)
(1.2)
(1.3)
(1.5)
Less: non-interest bearing
liabilities & others
(51.2)
(66.0)
(60.5)
(60.9)
(60.5)
GE Capital ENI
257.2
379.2
438.5
444.7
447.6
Less: Liquidity-c)
(77.9)
(76.4)
(75.5)
(79.9)
(76.3)
$179.3
$302.8
$363.0
$364.8
$371.3
GE Capital ENI (ex-Liquidity)
(a - As originally reported
(b - During 2Q’15 we classified additional businesses within GECC's Commercial Lending and Leasing business as held for sale and reported in discontinued operations
(c - Liquidity includes cash & equivalents from continuing operations (excluding held for sale balances) and $3.3B of debt obligations of the U.S. Treasury as of 2Q’15
28
GE Capital reserves–a)
($ in billions)
Allowances
for losses
Commercial
$4.2
0.1
$3.3
$3.4
3.3
3.3
2Q'14
1Q'15
2Q'15
3.28%
155%
4.11%
N/M–b)
4.02%
N/M–b)
0.1
Consumer
Coverage:
Reserves
Nonaccrual
4.1
0.1
Note: Reserve components are calculated independently. As a result, the sum of the individually displayed amounts may not equal the total.
(a - Real estate and the majority of CLL have been classified as discontinued operations. As a result, prior periods have been recasted accordingly
(b - Not meaningful
29