Jan 17, 2014 ... GE's Power Conversion business has won a contract for the supply of dynamic ...
Class 3 DP system and manual thruster control system.
December 2013 Investor Update January 17, 2014
Business Highlights
To the Investment Community, Wishing you a happy and healthy new year from the GE Investor Communications team! On December 4, Lorraine Bolsinger, Vice President, Distributed Power presented at the Credit Suisse Industrials Conference. Ms. Bolsinger described GE’s overall strategy and core differentiators in the Distributed Power space. Access the presentation materials. On December 13, the Board of Directors raised the Company’s quarterly dividend 16%, or $0.03 per outstanding share of the Company’s common stock, to $0.22 per outstanding share of the Company’s common stock. The Board declared that the dividend is payable January 27, 2014 to shareowners of record at the close of business on December 23, 2013. The ex-dividend date is December 19, 2013. Read press release.
Industrial Businesses
page 2
GE Capital
page 4
Other Company News
page 5
Investor Events
page 5
Contact Trevor A. Schauenberg Vice President Corporate Investor Communications 3135 Easton Turnpike Fairfield, CT 06828 USA T 203 373 2424 F 203 373 2071
[email protected]
On December 18, Jeff Immelt, Chairman and CEO, hosted the GE Annual Outlook meeting in New York. Mr. Immelt reviewed 2013 performance and highlighted the 2014 and future business outlook, which includes organic growth, significant cash, and a balanced portfolio. Mr. Immelt concluded the presentation with the slide to the left, which summarizes GE’s 2014 operating framework. Access the presentation. As always, for all presentations, news and other helpful information please visit our investor website at http://www.ge.com/investor. Please see “GE Reports” to keep informed about the latest company developments. We will update it daily to share information and our perspectives on GE activities around the world. Please visit our website at http://www.gereports.com/, or follow us on twitter at @GE_Reports.
Regards,
Results are preliminary and unaudited. 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 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; 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; our ability to complete the staged exit from our North American Retail Finance business as planned; 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.
Industrial Businesses Power & Water Power Gen Products/Distributed Power • Viva-Trilogy Dominicana S.A., a Dominican Republic mobile network, has announced the completion of a backup power pilot program using a GE Durathon* battery and a remote monitoring and diagnostic (RMD) system from OmniMetrix, LLC, an Acorn Energy company. The pilot resulted in an 88 percent reduction in backup power costs and diesel fuel expenses as well as a 60 percent decrease in site energy costs. Read the press release. *Durathon is a trademark of General Electric Company.
Renewables • The Kinangop Wind Farm in Kenya, developed by Aeolus Kenya and constructed by Iberdrola Engineering, will be powered by 38 GE 1.6-megawatt (MW) wind turbines. The Kinangop facility will be one of the largest wind power generation projects to be built to date in sub-Saharan Africa. Following its commissioning, the 61-MW wind farm will generate enough renewable electricity to power the equivalent of 150,000 homes in the country. Read the press release
Oil & Gas • GE announced the selection of a site in downtown Oklahoma City for the company’s firstever Global Research Center dedicated to Oil & Gas technology. The new center will create 130 high-tech jobs and is expected to have a direct and indirect economic impact of $13 million on the state and local economies. GE has invested approximately $14 billion in its Oil & Gas business globally since 2007. Read the press release. • Expanding its presence in the industrial gears sector, GE Oil & Gas announced it has signed an agreement to acquire Allen Gearing Solutions (Allen Gears), a privately held designer, manufacturer and service provider of gears for industrial and marine applications. The move comes two years after GE acquired a 35 percent minority interest in the business. Allen Gears employs approximately 160 people and has one manufacturing facility in Pershore, U.K. Read the press release.
Energy Management • GE announced the latest version of its Industrial Energy Management Solution—Power Management Control System version 7 (PMCS v7.0)—an integrated energy management system that helps industrial customers improve their energy efficiency dollars, which can go directly to their bottom line. By proactively monitoring energy assets and trends, customers can make system changes that will help to optimize energy use, reduce downtime and deliver higher productivity. Read the press release. • GE Intelligent Platforms announced the availability of its first product in the company’s new line of Operator Interface solutions designed specifically to take advantage of the Industrial Internet. QuickPanel+ integrates process control, view and an option to run an embedded data historian with the latest touchscreen technology to provide the high performance, connectivity and user experience expected in today’s increasingly connected world. Read the press release.
December 2013 Investor Update
2
Industrial Businesses continued • GE’s Critical Power business announced that ViaWest, the leading colocation provider in North America, has selected GE’s electrical distribution systems to power several of the company’s innovative data centers. ViaWest is deploying GE’s electrical distribution systems at its Lone Mountain, Tier IV design-certified data center in Las Vegas; the Cornell data center in Denver; the Synergy Park data center in Dallas and two new data centers under construction in Denver and Minneapolis. Read the press release. • GE’s Power Conversion business has won a contract for the supply of dynamic positioning (DP) for a vessel Floating Accommodation Unit that Cosco (Nantong) Shipyard in Nantong City, China, is building for Logitel Offshore, the Singapore-based floating logistics and accommodation rig owner that has an exclusive license agreement to use the proprietary Sevan Marine design within the floating accommodation market. The complete project includes a C-Series Class 3 DP system and manual thruster control system. Read the press release.
Aviation • Cathay Pacific Airways ordered 21 GE9X-powered Boeing 777-9Xs. This order makes Cathay Pacific the first customer in the Asia-Pacific region to select the new GE9X, which is part of the highly successful GE90 engine family. Cathay Pacific also signed a 15-year OnPointSM solution agreement to cover the maintenance, repair and overhaul of the GE9X engines. Read the press release. • Cathay Pacific Airways also ordered three GE90-115B-powered 777-300ERs and one GEnx-2B-powered 747-8 Freighter. Cathay Pacific also signed a 15-year OnPointSM solution agreement to cover the maintenance, repair and overhaul of these engines. This order follows the decision from Cathay Pacific to become AsiaPacific’s first 777X customer as mentioned above. Read the press release.
Healthcare • GE Healthcare Life Sciences and JHL Biotech announced that GE Healthcare has completed installation of its FlexFactory™ biomanufacturing platform at JHL Biotech’s Research Center and manufacturing plant in Hsinchu, Taiwan. Read the press release. • Leveraging the Industrial Internet to better impact patient outcomes, GE Healthcare announced at the 2013 Radiological Society of North America annual meeting, the launch of Centricity 360*, a GE PREDICTIVITY™ solution. Centricity 360 streamlines clinical collaboration among unaffiliated caregivers and patients to help reduce duplicate testing, avoid unnecessary patient transfers and lower diagnostic imaging distribution costs. Read the press release. *Centricity is a registered trademark of General Electric Company.
appliances & Lighting • GE’s Immersion™ RV60 LED lighting system, designed to replace traditional T12 high output fluorescent lamps, helps retailers reduce energy usage in one of their biggest areas of consumption—lighting vertical cases that house frozen foods, beverages, floral arrangements and more. The long-life LED lighting system is rated to perform up to 50,000 hours, contributing to significant reductions in maintenance costs as well. Read the press release.
December 2013 Investor Update
3
GE Capital GE Capital Aviation Services (GECAS) • GECAS announced a lease agreement with South Korean low-cost carrier Jeju Air for two Boeing 737-800 aircrafts. The aircraft are scheduled for delivery in 2014 and will expand the carrier’s fleet. Read the press release. • GECAS announced delivery of two new leased Airbus A320 aircraft to Mexican low-cost carrier Interjet. The aircraft were the last of six delivered to Interjet as part of a purchase-and-leaseback transaction with GECAS. All aircraft were from the airline’s orderbook with Airbus signed in 2006. Read the press release. • GECAS announced delivery of a new leased Airbus A330 aircraft to China Airlines to help modernize its fleet. This is the first of two A330s that will be leased to China Airlines. The second is scheduled for delivery in 2014. The aircraft come from GECAS’ existing orderbook with Airbus. Read the press release.
GE Energy Financial Services (EFS) • GE announced it is anchoring a lending group for longtime customer Invenergy LLC to finance construction of its 584-megawatt Nelson Energy Center in Illinois. The plant will operate with GE’s 7F gas turbine technology, with support of a long-term GE maintenance services agreement. Read the press release.
Commercial Lending & Leasing (CLL) • GE Capital, Corporate Retail Finance announced it is administrative agent on a $250 million senior revolving credit facility for Dunham’s Athleisure Corporation, a leading sporting goods retailer. The proceeds will support ongoing working capital needs and new store growth. Read the press release. • GE Capital announced that it is providing a $10 million senior credit facility to a group of investors to purchase and operate Universal Helicopters Newfoundland and Labrador, a regional helicopter services company. Read the press release. • GE Capital announced it is serving as administrative and collateral agent on a $585 million senior secured credit facility for RadioShack Corporation, a leading electronics retailer. The facility was provided alongside an additional $250 million secured term loan facility arranged by Salus Capital Partners, LLC. The combined proceeds of $835 million will refinance existing debt and provide additional liquidity as the company engineers a comprehensive operational turnaround. GE Capital Markets served as joint lead arranger and joint bookrunner on the $585 million facility. Read the press release.
December 2013 Investor Update 4
Other Company News Citizenship, ecomagination sm , healthymagination • GE engineers, in partnership with Louisville’s WaterStep organization, are providing 60 inventive portable water purification devices to thousands in the typhoon-stricken Philippines. The need for emergency drinking water supplies in the country is immense due to the disaster that hit the country’s most impoverished areas in November. Read the press release. • This year’s National Christmas Tree on display in front of the White House will feature GE’s new, energy smart® Sugar Plum LED holiday lighting. This year marks the 51st year GE Lighting has designed and donated lighting for the tree. Read the press release.
Recent investor events Visit the Events & Presentations section of our investor website to view the presentations. - October 18, 2013*: GE 3rd Quarter 2013 Earnings Webcast - November 7, 2013: Morningstar Management Behind the Moat Conference - November 13, 2013*: Goldman Sachs Industrial Conference - November 15, 2013*: GE Capital Investor Meeting - December 4, 2013: Credit Suisse Industrials Conference - December 18, 2013*: GE Annual Outlook Investor Meeting
Upcoming Investor Events (subject to change) - January 17, 2014**: GE 4th Quarter & Total Year 2013 Earnings Webcast Jeff Immelt, Chairman and CEO; Jeff Bornstein, Senior Vice President and CFO; and Trevor Schauenberg, VP Investor Communications will host a webcast to discuss 4th quarter and total year 2013 results. * Webcast replays are retained on our website for a limited period of time. **Meeting will be webcast.
December 2013 Investor Update 5
