GE 2013 third quarter performance October 18, 2013 – Financial results & Company highlights 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,” 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: current economic and financial conditions, including volatility in interest and exchange rates, commodity and equity prices and the value of financial assets; potential market disruptions or other impacts arising in the United States or Europe from developments in sovereign debt situations; 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; changes in Japanese consumer behavior that may affect our estimates of liability for excess interest refund claims (GE Money Japan); pending and future mortgage securitization claims and litigation 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 flow and earnings and other conditions which may affect our ability to pay our quarterly dividend at the planned level or to repurchase shares at the planned level; GECC’s ability to pay dividends to GE at the planned level; our ability to convert pre-order commitments into orders; the level of demand and financial performance of the major industries we serve, including, without limitation, air and rail transportation, energy generation, real estate and healthcare; the impact of regulation and regulatory, investigative and legal proceedings and legal compliance risks, including the impact of financial services regulation; our capital allocation plans, as such plans may change and affect planned share repurchases and strategic actions, including acquisitions, joint ventures and dispositions; our success in completing announced transactions and integrating acquired businesses; the impact of potential information technology or data security breaches; 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.” “In this document, “GE” refers to the Industrial businesses of the Company including GECC on an equity basis. “GE (ex. 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GE encourages investors to visit these websites from time to time, as information is updated and new information is posted. 3Q’13 overview Our environment continues to improve • Strong orders performance +19% with equipment +32% … backlog increased to $229B • Balanced global growth … growth markets +22%, U.S. +18%, Europe +17% • Revenue (1)% with Industrial segments +3% & GE Capital (5)% on planned lower assets Delivered $0.36 operating EPS, flat to prior year, +18% adjusted for other items • Industrial segment profit +11% ... 6/7 segments up, 4 double-digits • GE Capital earnings $1.9B, +13% … ENI $385B • $.02 restructuring & other charges and $.02 Avio acquisition-related charges, with no offsetting Industrial gains Strong execution on operating priorities • Industrial segment margins +120 bps. … strong value gap + cost productivity • Industrial structural cost out continues … ~$1B YTD … ahead of plan for 2013 • Generated $9.8B CFOA YTD excluding NBCU deal-related taxes ($7.8B total CFOA); GE Capital dividend $3.9B YTD Disciplined & balanced capital allocation • $13.9B cash returned to investors YTD … $5.9B dividends & $8.0B buyback • Closed Avio and Lufkin transactions … strategic acquisitions that will enhance longterm growth 2 3Q’13 orders $25.7B, +19% ($ in billions) Backlog Equipment $ V% Power & Water Oil & Gas Energy Mgmt. Aviation Healthcare Transportation Total $3.0 2.3 1.5 5.0 2.7 0.9 $15.1 37% 3 10 92 6 65 32% Services $ V% $2.9 2.1 0.6 2.7 1.9 0.7 $10.6 Orders price profile flat +1.9% (0.8)% (0.2)% +0.1% P&W O&G EM (1.5)% Aviation Healthcare (0.5)% Trans. 53 52 50 53 56 57 61 53 129 147 148 152 153 157 160 166 168 '10 '11 $175 Equip. 46 4% 6 39 Services 9 (4 ) 8 5% $229 $216 $223 $210 $200 $201 $204 $203 1Q'12 2Q'12 3Q'12 4Q'12 1Q'13 2Q'13 3Q'13 Highlights Equipment +32% … book-to-bill 1.2 Service orders +5% with 5/6 segments … PGS +8%, +14% ex. Europe; Aviation commercial spares +9% Every segment positive Broad regional growth … U.S. +18%, Europe +17%, growth markets +22% … Russia/CIS +51%, ANZ +36%, SSA +18%, MENAT +17%, China +17%, ASEAN 2x, Canada +10% Backlog +$6B … Aviation & Transportation Solid orders performance … very broad based Equipment & services backlog expansion continues 3 Growth dynamics ($ in billions) Growth markets Industrial segment revenue $9.0 $10.2 +13% Services Revenue $10.3 Technical progress +7% $11.0 + 14 new Industrial Internet offerings launched @ Minds & Machines … $400M+ in YTD orders + CFM LEAP FETT test ahead of schedule … early GE9x commitments + $2.7B announcement for gas, steam & mobile turbines will almost double Algeria’s power output by 2017 3Q'12 3Q'13 6/9 regions up double-digits Launched Marine vertical in Korea 3Q'12 3Q'13 + Healthcare … 36 NPI launches through 3Q; 11 slated for 4Q Double-digit revenue growth in Aviation, Oil & Gas, Energy Mgmt., and Transportation + Brazil using GE’s RNP software at 10 airports to emissions, fuel & airport capacity Aviation commercial spares ship rate +25% + H&BS: new cooking launches, strong retail & contract performance Aviation +30%, Power & Water Margins up 60 bps. +16%, Oil & Gas +12%, Healthcare +5% Backlog +$2B to $168B + Tier 4 Evo … only loco that meets EPA emissions without any use of aftertreatment 4 Operating profit margins ($ in millions) Third quarter 14.2% 15.4% +120 bps. 14.2% 3Q V pts. TY Mix 0.2 = Value gap 0.8 ++ R&D 0.1 = Simplification 0.7 ++ Other (0.6) -/= Dynamics 14.6% +40 bps. + Strong price performance $188 + Material deflation $137 3Q’12 3Q’13 Power & Water Oil & Gas Energy Mgmt. Aviation Healthcare Transportation H&BS 3Q’12YTD 3Q’13YTD 3Q OP % 19.8 % 12.0 1.0 20.3 15.5 21.8 3.7 V pts. 3.3 pts. (0.9) (1.2) 1.0 1.1 3.0 0.6 − Other inflation, FX, acquisitions Margins up 40 bps. YTD … on track for planned 70 bps. increase in 2013 Simplification gaining momentum … ahead of plan 5 Generating cash ($ in billions) Total CFOA Consolidated cash $87B 3QYTD CFOA $10.7 GE cash balance walk V% Total $15.5 $7.8 (27)% Beginning balance 1/1/13 $3.9 (28)% CFOA (ex. NBCU deal-related taxes) 9.8 Dividends (5.9) P&E (2.7) NBCU JV sale 16.7 NBCU deal-related taxes (2.0) $(2.0) Acquisitions (8.6) 2013 Buyback (8.0) GE Capital 3Q dividends $2.0B, up to $6.5B total year Change in debt/FX/other (4.6) Lufkin and Avio acquisitions closed September 2013 GECC dividend Industrial (ex. NBCU deal-related tax & pension) NBCU tax/ pension $5.4 $5.6 $(0.4) 2012 $5.9 5% NBCU deal-related taxes dampen CFOA by $2.0B $10.2 Have returned $13.9B to investors YTD … on track for planned $18B in 2013 6 3Q’13 consolidated results ($ in millions) ($ in billions – except EPS) Revenues – Industrial sales – Capital revenue 3Q’13 V% Revenues $35.7 25.3 10.7 (1)% 2 (5) $ Operating earnings Operating EPS Continuing EPS Net EPS 3.7 .36 .32 .31 (3) 0 (3) (6) CFOA YTD – Industrial – Industrial (ex. NBCU, pension) 7.8 3.9 5.9 (27) (25) 5 3Q’13 10% 20 0 3Q’12 14% 21 5 Tax rate – GE (ex. GECC) – GECC Power & Water V% $6,498 (10)% Segment profit $ $1,289 V% 9% Oil & Gas 4,315 18 519 11 Energy Mgmt. 1,828 (3 ) 18 (57 ) Aviation 5,364 12 1,091 18 Healthcare 4,304 - 665 7 Transportation 1,406 - 306 15 H&BS 2,098 7 77 28 Industrial 25,813 3 3,965 11 GE Capital 10,670 (5 ) 1,895 13 Total segments $36,483 Segment profit +12% … broad strength -% $5,860 12% 7 3Q’13 other items EPS impact Avio-related charges $(.02) Restructuring & other charges (.02) Discontinued operations (.01) 3Q’12 3Q’13 Operating EPS $.36 $.36 Avio charges – .02 Restructuring & other charges vs. gains – .02 NBCU JV income (.02) – Adjusted op. EPS $.34 $.40 +18% 3Q YTD GE Money Japan EPS dynamics Operating EPS Industrial gains vs. restructuring 1Q 2Q $0.39 $0.36 .04 (.02) $0.36 $1.11 (.02) – 8 Industrial segments ($ in millions) Power & Water 3Q’13 Oil & Gas $ V% 3Q’13 Revenues $6,498 (10)% Revenues Segment profit $1,289 9% 3Q dynamics Segment profit $ V% $4,315 18% $519 11% 3Q dynamics • $5.9B orders, +19%; equipment up 37% driven by Wind & Distributed Power; services +4% • $4.4B orders, +4% … equipment +3% with Turbomachinery +17% partially offset by Subsea (41)%; services +6% • Revenue … equipment (13)% with Distributed Power +44% offset by Thermal (12)% & Wind (42)%; services (5)% • Revenue ... equipment +19%, services +18% … solid growth in Subsea +23% & D&S +17%, continued softness in M&C +1% • Segment profit ... margins +330 bps. driven by value gap, cost out & Distributed Power growth • Segment profit ... margins (90) bps. driven by acquisitions, lower M&C growth, & project delays P&W … excellent operating performance & margin expansion O&G … continued double-digit growth, margins impacted by lower M&C + Lufkin 9 Industrial segments ($ in millions) Aviation 3Q’13 Revenues Segment profit Healthcare $ V% 3Q’13 $5,364 $1,091 12% 18% Revenues Segment profit $ V% $4,304 -% $665 7% 3Q dynamics 3Q dynamics • $7.8B orders, +51% … equipment +92% with strength in CFM LEAP, GEnx & GE90, services +9%… $114B backlog, +4% VPQ • $4.7B orders, +2% … equipment +6% with HCS +5% & Life Sciences +10%; services (4)% • Revenue … equipment +10% driven by higher engine shipments; services +14% • Revenue ... growth markets +5% driven by China 13% offset by developed markets (2)%, with U.S. +2%, Europe +2% and Japan (27)% • Segment profit ... margins +100 bps. on value gap strength • Segment profit … margins +110 bps. driven by cost productivity Aviation … strong core performance; orders strength continues Healthcare … competing well and executing on margin expansion 10 Industrial segments ($ in millions) Transportation 3Q’13 Revenues Segment profit 3Q dynamics $ V% $1,406 -% $306 15% Energy Management 3Q’13 Revenues Segment profit $ $1,828 $18 3Q dynamics • $2.0B orders, +16% … Digital Energy +23%, Power Conversion +19%, Intelligent Platforms +16% (3)% • Revenues & profits below expectations due to (57)% softer meter market & project execution V% 3Q dynamics Home & Business Solutions 3Q’13 Revenues Segment profit • $1.6B orders … equipment +65% driven by locomotives; services +8% • Revenues … strong services offset by equipment • Margins +300 bps. driven by value gap & services $ V% $2,098 7% $77 28% • Revenue … Appliances +11% driven by contract channel & strong retail; Lighting (1)% • Segment profit … Appliances continue to improve, Lighting pressure 11 GE Capital ($ in millions) 30+ delinquencies 3Q’13 $ Revenue V% $10,670 12.17% (5)% Pretax earnings 1,906 7 Net income 1,895 13 ENI (ex. cash) 385B (9) Net Interest margin 5.0% 22 bps. 6.69% CLL Consumer $170 136 (5)% Segment profit ($MM) $ V% $479 (15)% 11.22% 11.80% 11.52% 6.46% 6.10% 6.08% 6.10% 2.27% 2.16% 2.10% 1.98% 2.01% 1.87% 1.88% 1.75% 1.41% 3Q'12 4Q'12 1Q'13 2Q'13 3Q'13 2.84% Tier 1 common % (B1) 11.3% 116 bps. Assets ($B) $ V% 12.01% Mortgage Consumer CLL Real Estate 3Q dynamics • Real Estate +$0.2B and Consumer +$0.1B driven by lower losses & higher tax benefits • CLL $(0.1)B and GECAS $(0.1)B driven by lower assets and impairments (0) 889 19 Real Estate 40 (28) 464 F GECAS 47 (4) 173 (31) • Strong asset quality, reserve coverage at 2.0% EFS 18 (7) 150 • Cash at $76B; CP at $33B, ahead of plan 14 • Volume up 6%, returns holding Paid $2B dividend to parent in 3Q 12 2013 operating framework Operating earnings 2013E 2013 drivers Double-digit growth in second half as planned Industrial +/++ GE Capital + Originations at high returns Continued portfolio rebalancing; lower ENI Corporate - Planning for ~$3.3B including $0.3B GECC preferred and Avio acquisition-related charges Total operating earnings CFOA excl. NBCU-related tax CFOA incl. NBCU-related tax Total revenues +/++ $17-20B Planning Industrial CFOA & GE Capital dividends ($17-20B) offset by ~$3.2B taxes related to NBCU exit $14-17B 0-5% Industrial segment organic +2-6%; likely near low end of range; GE Capital revenues 0-(5)% Total framework remains unchanged Corporate costs higher driven by Avio-related charges 13 Investor objectives … 1 Double-digit Industrial earnings growth Industrial segment profit +11% in 3Q 2 Planning 70 bps. margin expansion 3Q margin expansion +120 bps., YTD +40 bps. … on track for planned 70 bps. in ’13 3 Significant cash from GE Capital Returned $3.9B cash to parent YTD, planning up to $6.5B in ’13; solid earnings, ENI $385B 4 +2-6% Industrial segment organic revenue growth 3Q organic +1% … expect stronger growth in 4Q 5 Expect to return ~$18B to shareowners Returned $13.9B through dividends and buyback YTD … on track for total year 6/7 segments with strong growth 14